COUNTY OF SAN MATEO

Inter-Departmental Correspondence

ENVIRONMENTAL SERVICES AGENCY

DATE:

February 25, 2004

SET TIME:

9:45 a.m.

BOARD MEETING DATE:

March 16, 2004

TO:

Honorable Board of Supervisors

FROM:

Marcia Raines, Director of Environmental Services

SUBJECT:

EXECUTIVE SUMMARY: Consideration of a Zoning Text Amendment to adopt an Inclusionary Program for Affordable Housing.

RECOMMENDATION

That the Board of Supervisors:

A.

Adopt an ordinance approving the Zoning Text Amendment to adopt an Inclusionary Program for the unincorporated area.

B.

Adopt a resolution directing staff to transmit the Inclusionary Program to the Coastal Commission for certification of conformity with the California Coastal Act.

PROPOSAL

As directed by the Board of Supervisors on December 16, 2003, staff is presenting an Inclusionary Program for adoption that is based on the recommendations of the General Plan Housing Element Task Force. Revisions to the program that were subsequently recommended by the Planning Commission are also discussed further in this staff report.

PLANNING COMMISSION ACTION

The Planning Commission voted 4-0 (Commissioner Kennedy absent) to recommend approval of the Inclusionary Program to the Board of Supervisors. In so doing, the Commission recommended the two key changes to the version of the Inclusionary Program recommended by the Housing Element Task Force, as described further below.

BACKGROUND

Inclusionary programs require new housing developments to include a percentage of affordable housing. In 1994, the County implemented a 20 percent inclusionary requirement in the unincorporated Colma BART Station Area. Coupled with the County's Density Bonus Ordinance, the program has been successful in producing 155 affordable units to date. The proposed Inclusionary Program would apply this program in all unincorporated areas.

SUMMARY

In 2002, the Board appointed a General Plan Housing Element Task Force that included members from a broad range of organizations involved in housing and related issues. Among the Task Force's recommendations was the adoption of an Inclusionary Program.

In summary, the program recommended by the Task Force would require all new multi-family developments of five or more units to provide 20 percent of the units constructed as affordable housing. For rental developments, the units must be affordable to very low or low-income households. For ownership developments, the units must be affordable to low or moderate-income households. The units must remain affordable for 55 years. Alternatives to constructing the units are allowed, including the payment of in-lieu fees for smaller developments of five to nine units. Incentives offered to assist developers in providing affordable units include density bonuses, priority permit processing and permit processing fee reductions.

The Planning Commission reviewed the proposed Inclusionary Program at a series of meetings during the Fall, 2003. The Commission recommended adoption of the Inclusionary Program, with two key changes: (1) extending the program to apply to single-family subdivisions of five or more lots/units, in addition to multi-family developments of five or more units; and (2) extending the term of affordability from 55 years to "in perpetuity."

On December 16, 2003, the Board considered both the updated Housing Element and the Inclusionary Program. The Board adopted the Housing Element but continued the Inclusionary Program, directing staff to present the version recommended by the Task Force, along with additional information regarding the changes recommended by the Planning Commission. This report responds to that request.