RES-2024-126RESOLUTION NO. 2 0 2 4 -12 6
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM ESTABLISHING AN
INCLUSIONARY HOUSING IN -LIEU FEE
SCHEDULE FOR THE INCLUSIONARY
HOUSING ORDINANCE.
WHEREAS, the State of California has a statewide housing affordability crisis,
which also manifests at the regional and local level; and
WHEREAS, the City recognizes the importance of continuing to proactively
develop affordable housing in Anaheim to meet the need of families who live and work in the
City; and
WHEREAS, the City of Anaheim's Regional Housing Needs Allocation (RHNA)
for the 2021-2029 Housing Element period indicates that the City has a total housing need of
17,453 units, including: 3,767 units for very low-income families; 2,397 units for low-income
families; 2,945 units for moderate -income families; and, 8,344 units for above moderate -income
families; and
WHEREAS, on August 20, 2024, the Anaheim City Council adopted Ordinance
No. 6588 establishing the Anaheim Local Housing Trust Fund (A-LHTF) to assist in developing
and maintaining affordable housing in the City; and
WHEREAS, on August 20, 2024, Housing and Community Development staff
presented background information to the City Council on the continuing need for funding and
policies to address affordable housing needs in Anaheim, and following a robust discussion, the
City Council directed staff to return with more specific details regarding inclusionary housing
policies; and
WHEREAS, on September 10, 2024, Housing and Community Development staff
returned to City Council with more specific details regarding inclusionary housing policies, and
after further discussion, the City Council directed staff to return with an inclusionary housing
ordinance that requires the production of onsite affordable housing units, or alternative
compliance procedures, including the payment of an in -lieu fee; and
WHEREAS, State of California Assembly Bill (AB) 1505 (Chapter 486, Statutes
of 2017), effective January 1, 2018, authorizes the legislative body of any city or county to adopt
an inclusionary housing ordinance that includes residential rental units affordable to lower and
moderate income households (California Government Code section 65850(g)); and
WHEREAS, California Government Code section 65850(g) provides that, "The
ordinance shall provide alternative means of compliance that may include, but are not limited to,
in -lieu fees"; and
1
WHEREAS, on October 8, 2024, the City Council gave first reading to the
Inclusionary Housing Ordinance (Ordinance No. 6593), which establishes an Inclusionary
Housing In -Lieu Fee; and
WHEREAS, on October 29, 2024, the City Council adopted the Inclusionary
Housing Ordinance; and
WHEREAS, Section 17.40.060 (Alternative Compliance Procedures) of Chapter
17.40 (Inclusionary Housing) of Title 17 (Land Development and Resources) of the Anaheim
Municipal Code establishes the Inclusionary Housing In -Lieu Fee as an alternative means to
compliance with the Inclusionary Housing Ordinance; and
WHEREAS, on November 19, 2024, the City Council held a duly noticed public
meeting or hearing as required by law to consider the fees and rates as hereinafter set forth in this
resolution; and
WHEREAS, although not applicable to the subject Inclusionary Housing In -Lieu
Fee, the City published all notices of the hearing on this resolution consistent with the
requirements of Government Code sections 66018 and 6062a; and
WHEREAS, Keyser Marston Associates, Inc. prepared an Inclusionary Housing:
In -Lieu Fee Analysis based on the inclusionary housing requirements enacted pursuant to the
Inclusionary Housing Ordinance; and
WHEREAS, the City Council finds that said fees and rates, in the amounts
hereinafter set forth in this resolution, are less than or equal to, but in any event do not exceed,
the actual direct and indirect costs and expenses incurred by the City of Anaheim for providing
services related to the Inclusionary Housing Ordinance; and
WHEREAS, any fees paid in lieu of producing affordable housing will be
deposited in the Anaheim Local Housing Trust Fund (A-LHTF) to be used to address the
production of local affordable housing; and
WHEREAS, all legal prerequisites to the adoption of this resolution have
occurred.
NOW, THEREFORE, the City Council of the City of Anaheim resolves, finds and
determines on the basis of the facts set forth in the agenda report presented to it and any
testimony received at the meeting at which this matter was considered, as follows:
Section 1. The foregoing recitals are true and correct.
Section 2. The Inclusionary Housing In -Lieu Fee shall be Ten Dollars ($10.00) per
square foot of the total habitable/leasable space in the entire applicable Residential Project, as set
forth in the In -Lieu Fee Calculation Methodology, attached hereto as Exhibit A and incorporated
herein by reference.
2
Section 3. The City Council of the City of Anaheim will review and update the
Inclusionary Housing In -Lieu Fee schedule periodically, as necessary, to address fluctuations in
market conditions.
Section 4. All Inclusionary Housing In -Lieu Fees collected under the Inclusionary
Housing Ordinance shall be deposited in the Anaheim Local Housing Trust Fund (A-LHTF) and
expended exclusively to provide or assure continued production of affordable housing in the
City, and for the associated costs of administering and monitoring these programs.
Section 5. The Inclusionary Housing In -Lieu Fee established herein is hereby
adopted and shall become effective sixty (60) days following the date of adoption of this
resolution.
THE FOREGOING RESOLUTION is approved and adopted by the City Council of the
City of Anaheim this 19th day of November, 2024, by the following roll call vote:
AYES: Mayor Pro Tem Kurtz and
Rubalcava and Faessel
NOES: Council Members Diaz and
ABSENT: Mayor Aitken
ABSTAIN: None
Council Members Leon,
Meeks
CITY OF ANAHEIM
B
MAYOR OF THE OTY OF ANA M
PRO TEM
50.E �THE OF ANAHEIM
EXHIBIT A
(attached behind this page)
EXHIBIT
IN -LIEU FEE CALCULATION METHODOLOGY
The following tables provide examples of the methodology used to calculate the in -lieu fees that
are imposed by this Resolution.
Inclusionary Housing Obligation
Total Units
Inclusionary Housing Percentage
Total Inclusionary Housing Obligation
Leasable Area
Total Units
Weighted Average Unit Size (Square Feet)
Total Lea sableArea (Square Feet)
In -Lieu Fee Per Square Foot of Total Leasable Area
In -Lieu Fee Calculation
Total LeasableArea (Square Feet)
In -Lieu Fee Per Square Foot of Total Leasable Area
Total In -Lieu Fee
In -Lieu Fee Per Inclusionary Unit
Total In -Lieu Fee
Number of InclsuionaryUnits
In -Lieu Fee Per Inclusionary Unit
240
x 10%
24 Units
240
x 875
210,000
$10.00
210,000
x $10.00
$2,100,000
$2,100,000
24
$87,500
Page 1
Fractional In -Lieu
Fee Payment Calculations
Measured Per Square
Foot of the Leasable Area of
One Unit in an
Apartment Development
Fractional In -Lieu ee:
Fraction
Per Square Foot of One Unit
0
i i0
0.20
$20.00
0.30
$30.00
0.40
$40.00
0.50
$50.00
0.60
$60.00
0.70
$70.00
0.80
$80.00
0.90
$90.00
1.00
$100.00
Fractional Unit Obligation
Weighted Average Unit Size (Square Feet)
Fractional In -Lieu Fee: Per Square Foot of One Unit
In -Lieu Fee Calculation
Weighted Average Unit Size (Square Feet)
Fractional In -Lieu Fee: Per Square Foot of One Unit
Total In -Lieu Fee
0.7
875
$70.00
875
x $70.00
$61,250
r 91
A
In -Lieu Fee Calculation Methodology Page 2
CLERK'S CERTIFICATE
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF ANAHEIM )
I, THERESA BASS, City Clerk of the City of Anaheim, do hereby certify that the foregoing is the
original Resolution No. 2024-126 adopted at a regular meeting provided by law, of the Anaheim
City Council held on the 19th day of November, 2024 by the following vote of the members thereof:
AYES: Mayor Pro Tern Kurtz and Council Members Leon, Rubalcava and Faessel
NOES: Council Members Diaz and Meeks
ABSTAIN: None
ABSENT: Mayor Aitken
IN WITNESS WHEREOF, I have hereunto set my hand this 201h day of November. 2024.
ACLK OF THE CI OF ANAHEIM
(SEAL)