18.05.060 Rental development affordable housing standards.
A developer of rental housing developments containing seven or more units shall provide at least fifteen percent of the total number of units as affordable housing units on-site. Of the total number of affordable housing units provided fifty percent shall be made affordable to low-income households and the other fifty percent shall be made affordable to very low income households. Alternatively, the project may comply with an alternative means of compliance as provided for in the Rental Housing Inclusionary Guidelines, which shall be adopted by resolution of City Council.
(a) On-site construction of affordable units for rent. A developer of a development containing seven or more units may meet the rental affordable housing requirement by constructing fifteen percent of the total number of units to be permanently affordable. Fifty percent of the fifteen percent of the total number of units made affordable on site shall be permanently affordable to low income households. The other fifty percent of the fifteen percent of the total number of units on site shall be permanently affordable to very low income households.
(1) Criteria for On-Site Construction. Affordable housing units shall not be clustered together in any building, complex or area of the development. Affordable housing units constructed on site shall be constructed using the same building materials and including equivalent amenities as the market rate units.
(2) Affordability Agreement. In order to qualify as affordable units pursuant to this section, such units shall be maintained in perpetuity as affordable units. The developer shall enter into an agreement with the city to ensure the continued affordability of all affordable rental housing units in perpetuity. This agreement shall be recorded.
(3) Density Bonus. A one-for-one city density bonus shall be awarded for the construction of on-site affordable units.
(4) Annual Monitoring. Affordable units must be managed by the developer or his or her agent. Each developer shall submit an annual report to the city identifying which units are affordable units, the monthly rent, vacancy information for each affordable unit for the prior year, gross annual incomes for the households of each affordable unit during the prior year, and other information as required by city staff. This annual monitoring shall include the inspection of ten percent of the on-site affordable units. Inspection reports created by an acceptable third party and completed within the same city fiscal year will be accepted in lieu of city staff performing the on-site inspection for that given monitoring year.
(5) Affordable Rents. Affordable rents shall be determined annually on a city-wide basis by city staff based upon the area median income and utility allowances for Yolo County, as determined by the Federal Department of Housing and Urban Development, the State Department of Housing and Community Development, and the Yolo County housing authority. If these agencies do not provide the information, the City of Davis will determine monthly rent amounts based on thirty percent of the targeted household’s gross monthly income.
(6) Tenant Selection and Screening. Please refer to Section 18.05.040(g) for the guidelines of this section.
(b) Alternative Compliance for Legislative Projects. An applicant for a project that requires a general plan amendment or zoning change and is subject to council discretion may propose an alternative rental affordable housing plan that meets the criteria for discretionary projects set out in the Rental Housing Inclusionary Guidelines, which shall be adopted by resolution of city council.
(c) Alternative Compliance for Non-Discretionary Projects. An applicant for a project claiming protection under state housing laws that limit city discretion, including, but not limited to, projects eligible for review under Government Code Section 65589.5, may propose an alternative rental affordable housing plan that meets the objective requirements for non-discretionary projects as described in the Rental Housing Inclusionary Guidelines, which shall be adopted by resolution of city council. (Ord. 2418 § 1, 2013; Ord. 2525 § 2, 2018; Ord. 2544 § 2, 2018; Ord. 2545 §§ 4, 5, 2019; Ord. 2550 § 2, 2019; Ord. 2561 § 2, 2019; Ord. 2578 § 2, 2020; Ord. 2594 § 2, 2020; Ord. 2612 § 2, 2021; Ord. 2632 § 2, 2022; Ord. 2644 § 2, 2023; Ord. 2646 § 6, 2023)