COUNTY OF SAN MATEO Inter-Departmental Correspondence
PLANNING AND BUILDING DEPARTMENT
DATE:				September 15, 2008
BOARD MEETING DATE:				September 30, 2008
SPECIAL NOTICE/HEARING:				None
VOTE REQUIRED:				Majority
TO:		Honorable Board of Supervisors
FROM:		Lisa Grote, Director of Community Development
SUBJECT:		Resolution authorizing the Director of Community Development to negotiate and enter into inclusionary housing agreements with developers of multi-family housing on behalf of the County of San Mateo.
RECOMMENDATION
Adopt a resolution authorizing the Director of Community Development or the Director’s designee to negotiate and enter into inclusionary housing agreements with developers of multi-family housing.
VISION ALIGNMENT
Commitment: Offer a full range of housing choices.
Goal: Housing exists for people at all income levels and for all generations of families.
Adoption of the resolution will help provide housing for all income levels by ensuring that developers of new multiple-family developments will create the amounts of affordable housing required by the Inclusionary Housing Requirements of the San Mateo County Ordinance Code, and maintain that required amount of housing as affordable for the period required by the Inclusionary Requirements.
Performance Measure			FY 2007-2008 Actual		FY 2008-2009 Projected
Percent of inclusionary housing agreements that implement the requirements of San Mateo County Inclusionary Housing Ordinance			100%		100%
BACKGROUND
In 2004, the Board of Supervisors adopted Sections 7908 through 7918 of the San Mateo County Ordinance Code, the “Inclusionary Requirements for Affordable Housing.” The purposes of Inclusionary Requirements are to:
Ÿ	Enhance the public health, safety, and general welfare by increasing the production of housing units affordable to extremely low, very low and low-income households and the production of ownership housing affordable to moderate income households in unincorporated San Mateo County;
Ÿ	Increase the supply of affordable housing in unincorporated San Mateo County by requiring the inclusion of housing affordable to extremely low, very low or low-income households, or the inclusion of ownership housing affordable to moderate income households, in new residential developments; and
Ÿ	Implement Policy 14.37 of the San Mateo County General Plan (Housing Element).
The Inclusionary Requirements require that developers of new multiple-family developments creating five (5) or more residential units designate a minimum of 20% of the total units constructed for sale or rent to extremely low, very low, low or moderate-income households. Developers must sell or rent the required units at prices or rents specified by the ordinance, and approved by the County, and must maintain the affordability of the units for the period specified in the ordinance, with only approved rental and price increases allowed over time. The ordinance also specifies a number of other conditions governing how the required affordable units may be built, marketed, rented and/or sold, and provides that the County has approval authority over unit buyer and renter selection for the entirety of the affordability period of the units.
DISCUSSION
The Inclusionary Requirements require that when a developer must, under the provisions of the ordinance, create affordable housing as part of a multi-family residential development, the developer must enter into binding agreements to ensure that all applicable provisions of the Inclusionary Housing Requirements are met, and that the affordable housing is provided at the required sale or rental price, and is maintained at the appropriate affordability level for the time period specified in the Inclusionary Requirements.
To date, only one project has been approved that has triggered inclusionary housing requirements. The construction of that project, which involves eight market-rate condominiums and one affordable condominium in North Fair Oaks, is nearing completion, and the owner has worked cooperatively with both the Housing and Planning Departments on the development of a legal agreement that implements the Inclusionary Requirements and project permit conditions. In order to finalize the agreement and other similar agreements that will be required for future projects that trigger inclusionary requirements, the Planning Department recommends that the Board of Supervisors authorize the Director of Community Development, or her designee, to negotiate and execute such agreements on behalf of the County. Such negotiations would take place in conjunction with the County Housing Department. Adoption of a resolution authorizing the Planning Department to execute such binding agreements with developers will help ensure that the purposes of the Inclusionary Requirements are met, and that affordable housing at appropriate sale and/or rental prices is created and maintained when required as part of multi-family residential development.
The inclusionary housing agreements are developed on a case-by-case basis pursuant to the requirements of the Inclusionary Housing Ordinance. It would therefore be more expedient for the Board to authorize the Director of Community Development, or her designee, to enter into those agreements on behalf of the County so as to streamline the process of bringing inclusionary units online.
REVIEWING AGENCIES
County Counsel
FISCAL IMPACT
Adoption of the resolution will have no fiscal impact on the County. The Inclusionary Requirements of the San Mateo County Ordinance Code are already in effect, and adoption of the resolution will not change any requirements under the ordinance.
ATTACHMENT
A.	Resolution authorizing the Director of Community Development to negotiate and enter into inclusionary housing agreements with developers of multi-family housing on behalf of the County of San Mateo