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REPORT <br />To the Honorable Mayor and City Council <br />From the City Manager <br /> <br />June 25, 2018 <br /> <br />SUBJECT <br />Adoption of 20% Inclusionary Housing Ordinance and Related Updates to State Density <br />Bonus Law Provisions <br /> <br />RECOMMENDATION <br />1. Waive the Second Reading and Adopt the Zoning Ordinance and Municipal Code <br />Amendments Related to Inclusionary Housing and State Density Bonus Law; <br />and <br />2. Adopt a Resolution Amending the Affordable Housing Impact Fee Resolution <br />with Minor Updates to Cross-References <br /> <br />BACKGROUND <br />On May 21, 2018, the City Council introduced and unanimously approved amending the <br />Zoning Ordinance and Municipal Code. These new amendments require certain new <br />housing developments to have at least 20 percent of the units be affordable. The <br />amendments also set forth which concessions to local zoning ordinance could be <br />allowed due to the provision of affordable units. The May 21 staff report is attached to <br />this report and provides details regarding the approval. <br /> <br />ANALYSIS <br />The zoning ordinance amendments approved by the City Council and contained within <br />the attached Ordinance (Attachment 1) establish a new Article 29 (Affordable Housing <br />Requirements) and incorporate the requirements of the Affordable Housing Impact Fee <br />ordinance (Municipal Code Chapter 18, Article XVII). The City is also updating the <br />Zoning Ordinance with the current State Density Bonus law requirements (Section <br />32.19). If adopted, this ordinance will be effective 30 days from this action. The <br />ordinance also makes non-substantive revisions as noted in strikethroughs and <br />underlining. <br /> <br />Due to the relocation of certain sections, minor updates are required to the Affordable <br />Housing Impact Fee Resolution. The proposed resolution attached to this report would <br />implement these updates and, if adopted, would be effective following the effective date <br />of the ordinance. <br /> <br /> <br />6.4.A. - Page 1