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HomeMy WebLinkAboutResolution No. 06-C0470 RESOLUTION NO. 06-C47 0 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA ADOPTING A SERVICES PRIORITY POLICY FOR LOWER INCOME DEVELOPMENTS IN ACCORDANCE WITH SB 1087 WHEREAS, SB 1087 requires providers of water and sewer services to grant priority for these services to "proposed developments that include housing units for lower income households;" and WHEREAS, SB 1087 defines "proposed developments that include housing units for lower income households" as developments that include dwelling units to be sold or rented to lower income households, as defined in Section 50079.5 of the Health and Safety Code, at an affordable cost, as defined in Section 50052.5 of the Health and Safety Code, or an affordable rent, as defined in Section 50053 of the Health and Safety Code; and WHEREAS, SB 1087 further requires that water and sewer providers adopt a written policy with specific objective standards for meeting the priority requirement for lower income developments; and WHEREAS, the City of Azusa is a water and sewer service provider subject to the requirements of SB 1087; and WHEREAS, the City Council of the City of Azusa desires to adopt this resolution in order to ensure developments with lower income developments receive service priority in accordance with SB 1087. NOW, THEREFORE, be it resolved by the City Council of the City of Azusa as follows: Section 1. Policy. In accordance with SB 1087, the City of Azusa shall grant water and sewer service priority to any "proposed developments that include housing units for lower income households." For purposes of this policy, "proposed developments that include housing units for lower income households" shall be developments that include dwelling units. to be sold or rented to lower income households, as defined in Section 50079.5 of the Health and Safety Code, at an affordable cost, as defined in Section 50052.5 of the Health and Safety Code, or an affordable rent, as defined in Section 50053 of the Health and Safety Code (attached). Section 2. Rescission of Conflicting Resolutions or Policies. All prior resolutions or policies inconsistent with this Resolution are hereby repealed but only to the extent that they conflict with this Resolution. Section 3. Effective Date. This Resolution is effective upon its adoption. ADOPTED this 19th day of June, 2006. 0 ATTEST: Vera Mendoza, City Clerk�'� 0 :Z�uft'�M� Diane Chagnon, Mayor I HEREBY CERTIFY that the foregoing Resolution No. 06-C47 was duly adopted by the City Council of the City of Azusa at a regular meeting on the I 91 day of June, 2006. AYES: COUNCILMEMBERS: HARDISON, CARRILLO, ROCHA, HANKS, CHAGNON NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE era Mendoza, City Clerk Attachment to Resolution Regarding SB 1087 (2005) Statute Sections provided in order of their reference in Resolution: 50079.5. (a) "Lower income households" means persons and families whose income does not exceed the qualifying limits for lower income families as established and amended from time to time pursuant to Section 8 of the United States Housing Act of 1937. The limits shall be published by the department in the California Code of Regulations as soon as possible after adoption by the Secretary of Housing and Urban Development. In the event the federal standards are discontinued, the department shall, by regulation, establish income limits for lower income households for all geographic areas of the state at 80 percent of area median income, adjusted for family size and revised annually. (b) "Lower income households" includes very low income households, as defined in Section 50105, and extremely low income households, as defined in Section 50106. The addition of this subdivision does not constitute a change in, but is declaratory of, existing law. (c) As used in this section, "area median income" means the median family income of a geographic area of the state. 50052.5. (a) For any owner -occupied housing that receives assistance prior to January 1, 1991, and a condition of that assistance is compliance with this section, "affordable housing cost" with respect to lower income households may not exceed 25 percent of gross income. (b) For any owner -occupied housing that receives assistance on or after January 1, 1991, and a condition of that assistance is compliance with this section, "affordable housing cost" may not exceed the following: (1) For extremely low households the product of 30 percent times 30 percent of the area median income adjusted for family size appropriate for the unit. (2) For very low income households the product of 30 percent times 50 percent of the area median income adjusted for family size appropriate for the unit. (3) For lower income households whose gross incomes exceed the maximum income for very low income households and do not exceed 70 percent of the area median income adjusted for family size, the product of 30 percent times 70 percent of the area median income adjusted for family size appropriate for the unit. In addition, for any lower income household that has a gross income that equals or exceeds 70 percent of the area median income adjusted for family size, it shall be optional for any state or local funding agency to require that affordable housing cost not exceed 30 percent of the gross income of the household. (4) For moderate -income households, affordable housing cost shall not be less than 28 percent of the gross income of the household, nor exceed the product of 35 percent times 1 10 percent of area median income adjusted for family size appropriate for the unit. In addition, for any moderate -income household that has a gross income that exceeds 1 10 percent of the area median income adjusted for family size, it shall be optional for any state or local funding agency to require that affordable housing cost not exceed 35 percent of the gross income of the household. (c) The department shall, by regulation, adopt criteria defining, and providing for determination of, gross income, adjustments for family size appropriate to the unit, and housing cost for purposes of determining affordable housing cost under this section. These 0 0 regulations may provide alternative criteria, where necessary to be consistent with pertinent federal statutes and regulations governing federally assisted housing. The agency may, by regulation, adopt alternative criteria, and pursuant to subdivision (f) of Section 50462, alternative percentages of income may be adopted for agency -assisted housing development. . (d) With respect to moderate- and lower income households who are tenants of rental housing developments and members or shareholders of cooperative housing developments, or limited equity cooperatives "affordable housing cost" has the same meaning as affordable rent, as defined in Section 50053. (e) Regulations of the department shall also include a method for determining the maximum construction cost, mortgage loan, or sales price that will make housing available to an income group at affordable housing cost. (1) For purposes of this section, "area median income" shall mean area median income as published by the department pursuant to Section 50093. (g) For purposes of this section, "moderate income household" shall have the same meaning as "persons and families of moderate income" as defined in Section 50093. (h) For purposes of this section, and provided there are no pertinent federal statutes applicable to a project or program, "adjusted for family size appropriate to the unit" shall mean for a household of one person in the case of a studio unit, two persons in the case of a one -bedroom unit, three persons in the case of a two-bedroom unit, four persons in the case of a three-bedroom unit, and five persons in the case of a four-bedroom unit. 50053. (a) For any rental housing development that receives assistance prior to January 1, 1991, and a condition of that assistance is compliance with this section, "affordable rent" with respect to lower income households shall not exceed the percentage of the gross income of the occupant person or household established by regulation of the department that shall not be less than 15 percent of gross income nor exceed 25 percent of gross income. (b) For any rental housing development that receives assistance on or after January 1, 1991, and a condition of that assistance is compliance with this section, "affordable rent," including a reasonable utility allowance, shall not exceed: (1) For extremely low income households the product of 30 percent times 30 percent of the area median income adjusted for family size appropriate for the unit. (2) For very low income households, the product of 30 percent times 50 percent of the area median income adjusted for family size appropriate for the unit. (3) For lower income households whose gross incomes exceed the maximum income for very low income households, the product of 30 percent times 60 percent of the area median income adjusted for family size appropriate for the unit. In addition, for those lower income households with gross incomes that exceed 60 percent of the area median income adjusted for family size, it shall be optional for any state or local funding agency to require that affordable rent be established at a level not to exceed 30 percent of gross income of the household. (4) For moderate -income households, the product of 30 percent times 110 percent of the area median income adjusted for family size appropriate for the unit. In addition, for those moderate -income households whose gross incomes exceed 1 10 percent of the area median income adjusted for family size, it shall be optional for any state or local funding agency to require that affordable rent be established at a level not to exceed 30 percent of gross income of the household. 0 0 (c) The department's regulation shall permit alternative percentages of income for agency -assisted rental and cooperative housing developments pursuant to regulations adopted under subdivision (f) of Section 50462. The department shall, by regulation, adopt criteria defining and providing for determination of gross income, adjustments for family size appropriate to the unit, and rent for purposes of this section. These regulations may provide alternative criteria, where necessary, to be consistent with pertinent federal statutes and regulations governing federally assisted rental and cooperative housing. The agency may, by regulation, adopt alternative criteria, and pursuant to subdivision (f) of Section 50462, alternative percentages of income may be adopted for agency -assisted housing developments. For purposes of this section, "area median income," "adjustments for family size appropriate to the unit," and "moderate -income household" shall have the same meaning as provided in Section 50052.5.