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REPORT <br />To the Honorable Mayor and City Council <br />From the City Manager <br /> <br />May 21, 2018 <br /> <br />SUBJECT <br />Inclusionary Housing Ordinance Requiring Affordable Units in Residential <br />Developments (new Article 29 of the Zoning Ordinance), Moving Affordable Housing <br />Impact Fee Regulations from the Municipal Code to New Zoning Ordinance Article 29, <br />and Related Updates to State Density Bonus Law Provisions (Section 32.19) and <br />Adopting an Affordable Housing In-Lieu Fee <br /> <br />RECOMMENDATION <br />1) Hold a public hearing, <br />2) Introduce an Ordinance Amending the Zoning Ordinance and Municipal Code, <br />3) Adopt a Resolution Creating a New Affordable Housing In-Lieu Fee, <br />4) Find that the proposed Ordinance and In-Lieu Fee Resolution Are Exempt From <br />CEQA Under CEQA Guidelines Section 15061(B)(3), and <br />5) By Motion, Direct Staff to Report Back to the Planning Commission and City Council <br />in Three Years <br /> <br />BACKGROUND <br />In 2013, the City adopted a housing element with a variety of policies and programs <br />intended to increase housing supply and address housing affordability issues. The <br />Regional Housing Needs Allocation (RHNA) goal, a critical component of the Housing <br />Element, is a primary consideration when establishing housing policies. The RHNA goal <br />identifies the amount of housing at each affordability level needed to meet projected <br />local demand.1 <br /> <br />Recent Redwood City multi-family residential developments have primarily contained <br />market rate units. Previously, the Redevelopment Agency had required 15% of all units <br />to be affordable, resulting in the production of over 700 affordable units. In 2015, to <br /> <br />1 The RHNA is a state-mandated process used to identify the total number of housing units that each <br />jurisdiction must accommodate in Housing Elements. As part of this process, the California Department of <br />Housing and Community Development (HCD) identifies the total housing need for the Bay Area. The <br />Association of Bay Area Governments (ABAG), as the Regional Planning Agency, develops the <br />methodology to distribute the housing need to local governments consistent with the region’s Sustainable <br />Communities Strategy. <br />7.A. - Page 1