Planning Commission Set to Hear Update on Inclusionary Housing Requirements

The Planning and Community Development Department will provide a one-year review of the inclusionary housing ordinance to the Planning Commission at 4:30 p.m. Wednesday.

The meeting can be viewed at  https://us02web.zoom.us/j/83896024397

Last year the City Council voted to raise the number of affordable units developers must set aside on all new projects. The 2019 amendment forces developers to allocate 20 percent of the total number of proposed housing units to moderate- to low-income residents, up from 15 percent.

The changes recommended by the Planning Department also eliminated a clause that allowed developers to build fewer affordable units by equating one very low-income unit to 1.5 low-income units, or two moderate-income units.

In-lieu fees that allow developers to avoid meeting the minimums on low-income and moderate-housing were also raised.

Prior to the amendment, it cost developers $50,000 to opt out of building low-income units. Today, the cost is $100,000.

Since the amendments became effective in December, no new affordable housing concession permit (AHCP) applications have been filed.

One AHCP project already going through the city’s process is now abiding by the amended ordinance. No non-concession projects switched over. Three new non-affordable applicants filed under the ordinance since it was amended. In total, seven projects were required to increase the number of affordable units, resulting in 17 additional units.

The amendment also allows up to two concessions if inclusionary units are built onsite. The city can also waive the affordable housing concession permit process and allow the project to go directly to Design Review, which could cut down the time it takes to build the project by up to 24 months.

According to a staff report, discussions with applicants indicate that the amended ordinance is somewhat attractive, but its usefulness depends on site conditions and proposed affordability. Others said more time is needed to assess longer-term impacts.

In 2017, Housing Director Bill Huang told the Pasadena Weekly that the city’s Inclusionary Housing Ordinance had led to the construction of about 500 housing units for low- and moderate-income renters since 2001.