17.48.030 Inclusionary housing | Marina Municipal Code

17.48.030 Inclusionary housing.

A. Purpose and Intent. It is the intent of this section to establish standards and procedures that facilitate the development of housing affordable to a range of households with varying income levels as mandated by California Government Code Section 65580. The purpose of this section is to encourage the development and availability of such housing by ensuring that the addition of affordable housing units to the city’s housing stock is in proportion with the overall increase in housing units.

a. All residential developments of twenty or more units;

b. Existing occupied housing in Marina’s former Fort Ord.

a. Residential developments proposed to contain fewer than twenty units;

b. Market-rate units produced as a density bonus pursuant to Section 17.48.040;

c. Any housing unit or residential development which is damaged or destroyed by fire, natural catastrophes, or act of public enemy, subject to the following conditions:

i. The unit or development is damaged or destroyed to the extent to not more than seventy-five percent of the assessed value thereof, as shown on the latest Monterey County assessment roll, prior to such destruction,

ii. The use of the reconstructed building and number of housing units remain the same as prior to the damage or destruction,

iii. The square footage of the reconstructed building is not increased or reduced by more than ten percent,

iv. The unit or development is reconstructed within four years of the damage or destruction, and

v. Should the reconstructed development result in an increased number of housing units, only the net increase in units shall incur an inclusionary housing requirement.

1. All new residential development of twenty or more units and all existing occupied housing in Marina’s former Fort Ord shall be required to provide at minimum a specified percentage of housing units affordable to specific income groups according to the affordability distribution set forth in Table 17.48.030-1.

2. Provision of affordable for-sale housing for middle income households is voluntary and incentive-based. The developer must submit a request for incentives as part of the affordable housing plan for review by the director.

Table 17.48.030-1. Inclusionary Housing Requirements
Planning Area	Percentage of Required Affordable Housing by Income				Total Affordable Requirement (Percentage of Total Units)
Planning Area	Very Low	Low	Moderate	Middle	Total Affordable Requirement (Percentage of Total Units)
Citywide For-Sale or Rental Housing: New Construction or Substantially Rehabilitated	6 Percent	7 Percent	7 Percent	10 Percent—Voluntary and Incentive-Based	20+ percent
Former Fort Ord: Existing Occupied Housing	15 Percent	15 Percent	10 Percent	0 Percent	40 Percent¹

1Inclusionary housing requirement for existing occupied housing on the former Fort Ord can be fulfilled by providing fewer moderate income housing units than required above if a greater percentage of very low and low income housing units are provided and the total number of very low, low and moderate income units is not less than forty percent.

a. The inclusionary housing requirement shall apply to all existing, occupied housing transitioning from the Army, Fort Ord Reuse Authority (FORA), or other entity to the city of Marina or the redevelopment agency of the city of Marina or some other entity (including Abrams B and Preston Park housing), except that existing occupants of such housing, shall be “grandfathered” in and shall not be displaced as a result of enactment of this inclusionary housing provision.

i. Within the later of six months of adoption of this chapter or six months of transfer of existing occupied housing at Fort Ord from FORA, property owners of existing residential development subject to this subsection C shall submit, for review by the director and approval by the city council, an affordable housing plan detailing compliance with this subsection. Contents of the affordable housing plan shall adhere to requirements set forth in Section 17.48.070.

ii. Within one year of adoption of this chapter, property owners of existing residential development subject to this subsection C shall execute and record an affordable housing agreement with the city of Marina pursuant to Section 17.48.080 and begin implementation of the agreement.

c. Inclusionary housing requirements for existing occupied housing on the former Fort Ord can be fulfilled with fewer moderate income housing units than specified in Table 17.48.030-1 if a greater percentage of very low and low income housing units are provided and the total number of very low, low and moderate income units is not less than forty percent, and the allocation of the inclusionary units is approved as part of the affordable housing agreement. The trading of units is one-way only from moderate income to low and very low income, or from low income to very low income.

a. In calculating the required number of inclusionary units, fractional units of 0.50 or above shall be rounded up to a whole unit.

b. The number of inclusionary units required for a particular project will be determined at the time of an application for discretionary approval is filed by the developer for a residential development or redevelopment with the city’s community development department.

c. Second units included as part of a residential development or redevelopment project are not included in the base for calculating the number of inclusionary units required and cannot be used to fulfill the inclusionary housing requirements.

d. For purposes of calculating the number of inclusionary units required by this section, any additional units authorized as a density bonus under Section 17.48.040 and California Government Code Section 65915(b)(1) or (b)(2) will not be counted in determining the required number of inclusionary units.

1. The city council may approve alternatives, as outlined in subsection (D)(2) of this section or other alternatives, to the construction of inclusionary units on-site where the proposed alternative supports specific housing element policies and goals and assists the city in meeting its state housing requirements and the city council finds that the alternative proposed will provide more affordable units or units that provide a greater level of affordability than compliance with subsection C of this section. In order to approve alternatives to the construction of inclusionary units on site, the city council shall make findings that new construction would be infeasible or present unreasonable hardship in light of such factors as project size, site constraints, market competition, price and product type disparity, developer capability, and financial subsidies available and shall be based upon an economic analysis prepared by the developer and accepted by the director supporting the findings.

a. Land Dedication. Dedicate without cost to the city, a lot or lots within or contiguous to the residential development, sufficient to accommodate at least the required inclusionary units for the residential development. An election to dedicate land in lieu of compliance with other provisions of this chapter shall be allowed only if:

i. The value of the lot or lots to be dedicated is sufficient to make development of the otherwise required inclusionary units economically feasible, and financing or a viable financing plan is in place for at least the required number of inclusionary units,

ii. The lot or lots are suitable for construction of affordable housing at a feasible cost, appropriately zoned, served by utilities, streets and other infrastructure and there are no hazardous material or other material constraints on development of affordable housing on the lot or lots, including liens or other encumbrances that would prevent the development of affordable housing on the lot or lots, and

iii. All city approvals necessary for construction of inclusionary units on the lots or lots to be dedicated have been obtained prior to dedication;

b. Acquisition and rehabilitation of affordable units at the same level of affordability as required for the inclusionary units. Any such units acquired and rehabilitated must be subject to a regulatory agreement ensuring the long-term affordability of the inclusionary units, and must not currently be subject to a regulatory agreement requiring long-term affordability;

c. Preservation of publicly assisted rental units at risk of converting to market-rate housing;

d. Conversion of a sufficient number of existing market-rate units to inclusionary units to provide the same number of affordable units as would be required on site;

e. Construction of special needs housing (shelters, transitional housing, etc.) meeting the housing needs for special needs groups as identified in the housing element;

f. Acquisition/rehabilitation of affordable housing, preservation of at-risk housing, and conversion of market-rate units to affordable units shall comply with the requirements of Section 65583.1 of the California Government Code in addition to the standards and affordability controls specified in this chapter;

g. For residential developments with five hundred or more dwelling units developed pursuant to a specific plan or development agreement, the city council may approve an affordable housing program consistent with the housing element of the general plan that is tailored to the development and may differ from the provisions set forth in this chapter;

h. Such other alternative as may be approved by the city council subject to the required findings set forth in subsection (D)(1) of this section.

1. At the times and in accordance with the standards and procedures set forth in Section 17.48.070, a developer shall:

a. Submit an affordable housing plan for review by the director, setting forth in detail the manner in which the provisions of this section will be implemented for the proposed residential development;

b. Execute and record an affordable housing agreement with the city of Marina;

c. Execute and record a regulatory agreement against each inclusionary unit.

2. No discretionary approval (or building permit, if discretionary approval is not required) shall be issued for all or any portion of a residential development or redevelopment subject to this section until the developer has submitted an affordable housing plan. If discretionary approval is not required, an affordable housing plan shall be submitted at the time of building permit application.

3. No building permit or final or parcel map shall be issued for the residential development, or any portion thereof, subject to this section unless the approval body has approved the affordable housing plan and the affordable housing agreement, if required, is recorded.

4. No final inspection shall be conducted for the residential development, or any portion thereof, subject to this section unless the approved affordable housing plan and/or regulatory agreement, has been fully implemented. The time requirements set forth in this subsection for final inspection for nonrestricted units may be modified to accommodate phasing schedules, model variations, or other factors in a residential project, if the city determines that this will provide greater public benefit and an affordable housing agreement acceptable to the approval body so provides. (Ord. 2020-07 § 2, 2020; Ord. 2006-14 § 2 (Exh. A), 2006)