§ 29.01.020. Findings.

(a)

In order to implement the goals and objectives of the county general plan and housing element, to create a balanced housing stock that offers housing choices affordable for all income groups throughout the county, to mitigate the demand for affordable housing caused by new development projects within the county, and to mitigate the shortage of affordable housing stock created by development of housing that is affordable only to higher income households, it is necessary for the county to establish the affordable housing fund, the in-lieu fee and housing impact fee. The fees are needed to finance affordable housing units for low, very low, moderate income and workforce households. The fees will help to assure that new development projects provide for their fair share of affordable housing.

(b)

The board of supervisors finds and determines that:

(1)

New development projects cause the need for construction, expansion, or improvement of affordable housing within the County of San Luis Obispo.

(2)

Housing market conditions and new development projects have provided a disproportionate quantity of housing units that are not affordable to all income groups. This has created, county-wide, an unbalanced housing stock which lacks an equal share of housing units affordable to very low, low, moderate, workforce and above moderate income households.

(3)

Funds for construction, expansion, or improvement of affordable housing are not available to accommodate the needs caused by development projects; which will result in an inadequate supply of affordable housing stock within San Luis Obispo County.

(4)

The following studies evaluate the housing market conditions in San Luis Obispo County: 1) San Luis Obispo County Inclusionary Zoning Ordinance Financial Analysis (Vernazza Wolfe Associates: December 21, 2007); 2) Commercial Linkage Fee Nexus Study (Vernazza Wolfe Associates: December 21, 2007); 3) Residential Housing Impact Fee Nexus Study (Vernazza Wolfe Associates: October 2012); 4) Updated Commercial Linkage Fee Nexus Study (Vernazza Wolfe Associates: October 2012); and 5) Affordable Housing Nexus Studies (Keyser Marston: August 2017).

(5)

The Inclusionary Zoning Ordinance Financial Analysis evaluates the financial impact of the inclusionary housing ordinance on residential development (Title 22 Section 22.12.080 and Title 23 Section 23.04.096, all of the county code), and establishes an in-lieu fee schedule that will enable residential development projects to provide a fair share of affordable housing units and yet receive a net profit that would meet the minimum expected return anticipated by residential developers.

(6)

The Commercial Linkage Fee Nexus Study evaluates and quantifies the demand for affordable housing caused by new commercial and industrial development. The study establishes a reasonable and justifiable housing impact fee schedule that can be imposed on commercial and industrial development projects in order to mitigate the impact to the county's housing stock that is caused by such development projects.

(7)

The studies establish a reasonable relationship between the use of the in-lieu and housing impact fees and the type of development projects on which the fees are imposed. The in-lieu fee shall be used to produce affordable housing units and mitigate the actions by residential development that generates a disproportionate share of above moderate income housing in the county. The housing impact fee shall be used to produce affordable housing and mitigate the need for such housing that is generated by the construction of new commercial and industrial projects in the county.

(8)

The studies establish a reasonable relationship between the need for affordable housing and the type of development projects on which the in-lieu and housing impact fees are imposed. Residential development in San Luis Obispo County is generating a disproportionate number of dwelling units for above moderate income households, which has created an unmet need for affordable housing. The studies provide an in-lieu fee schedule to be imposed on residential development. The in-lieu fee will be used to produce the needed affordable housing yet still allow residential developers to receive a net profit that meets the minimum expected return anticipated by them. The studies document the number of affordable housing units needed when new commercial and industrial development is built. The studies provide a housing impact fee schedule to be imposed on commercial and industrial development. The housing impact fee schedule provides a reasonable and justified fee amount that matches the cost of producing the affordable housing units needed to serve new commercial and industrial development.

(c)

The board of supervisors finds that the public health, safety, peace, morals, prosperity and general welfare will be promoted by the adoption of the affordable housing fund, the in-lieu fee and housing impact fee. These instruments will provide permanent and annually renewable sources of revenue that will be used to fund the construction, expansion, or improvement of affordable housing, the need for which is caused when new development projects create an unbalanced housing stock mat is not affordable to all income groups. In establishing these fees, the board of supervisors finds mat the in-lieu fee and housing impact fee are consistent with the county General Plan/Land Use Ordinance. Pursuant to Government Code Section 65913.2, the board of supervisors has considered the effects of the fees with respect to the county's housing needs as established in the Housing Element of the General Plan/Land Use Ordinance.

(Ord. No. 3171, § 1, 12-9-08; Ord. No. 3384, § 1, 3-12-19)