What does Jurupa Valley's inclusionary housing rule mean for a new home?

You’re considering a new home in Jurupa Valley, or preparing to sell one, and the paperwork mentions inclusionary housing. The key question is whether the home is an inclusionary unit under a recorded Affordability Agreement. If it is, price, resale and occupancy restrictions matter to your purchase or sale.

This is general information and not legal advice.

Which developments does the rule cover?

The rule applies to residential or mixed-use development projects approved after September 17, 2022, according to the City of Jurupa Valley’s Inclusionary Housing Ordinance page.

The city adopted Ordinance No. 2022-14 on August 18, 2022. It appears in Municipal Code Chapter 9.267, titled “Inclusionary Housing Requirement and Affordable Housing In-lieu Fee.”

The requirement covers lots or units offered for sale or rent, including subdivisions and common interest developments. It requires developers to reserve units for lower- and moderate-income households, with compliance alternatives available.

An existing home is affected if it is an inclusionary unit under a recorded agreement. When comparing a builder purchase with a resale, ask for the recorded Affordability Agreement and plain-language notice, and check the title documents.

D. came to us with an idea for a few new homes. His brother was interested, another relative might buy one, and they’d already had several conversations about layouts and kitchens. When we asked what requirements he’d allowed for in the budget, he said, “Well, it’s only a small project.” That was the part we needed to check. Jurupa Valley’s inclusionary housing rule belongs in those early numbers, including the question of whether it applies to the project at all.

How many inclusionary units does a project provide?

The city’s calculation uses a multiplier of 0.07 applied to the total number of units.

The Inclusionary Housing Ordinance Administrative Guidelines give this worked example: an 80-unit project produces 5.6 inclusionary units, rounded up to six. The first and fifth units are moderate-income units, the second and sixth are low-income units, and the third and fourth are very low-income units. A fraction of 0.5 or above rounds up to a whole unit.

The guidelines require reasonable dispersal throughout the project. Inclusionary units must be indistinguishable from market-rate units in size, design, materials, finished quality and appearance. They must also have similar unit types, proportional bedrooms and locations, and the same access to project amenities and recreational facilities.

Are there exemptions and other ways to comply?

Yes, the guidelines exempt specified projects and allow developers to meet the requirement through several alternatives.

Exemptions include accessory dwelling units, home remodels and additions, mobile homes and density bonus units. The city’s SB 9 units are also exempt from this requirement, though its SB 9 ordinance requires an affordability covenant on one unit. The separate ADU rules guide is relevant if your project involves an accessory dwelling unit.

Residential projects approved before September 17, 2022, are exempt; if later modified to add density, the requirement applies only to added units.

Beyond building on site, alternatives include paying a fee, building off site, dedicating land, converting market-rate units, preserving at-risk affordable housing, receiving deeper-affordability credit or obtaining approval for an innovative alternative. Alternatives other than the fee need City Manager review, with the option of City Council review.

How do the fee and the developer’s paperwork work?

The fee is a developer compliance option, and the Inclusionary Housing Plan details how the ordinance will be implemented.

The city’s Inclusionary Housing Program Bulletin lists $2.50 per net square foot, counting all livable floor area including garages. That figure may have changed since the bulletin: the fee can change by City Council resolution. Developers should confirm it with the Community Development Department. Payment is due before the first building permit, and collected fees go to an affordable housing trust fund.

A developer files an Inclusionary Housing Plan and signs an Affordability Agreement unless compliance is through the fee or land conveyance. No building permit is issued until the Community Development Director approves the plan and any required agreement is recorded. A certificate of occupancy follows full implementation of the approved plan.

What should a buyer check before purchasing?

If the home is an inclusionary unit, check the recorded agreement, eligibility requirements and affordable price paperwork before purchasing.

The agreement runs with the land. The bulletin gives a 45-year restriction for for-sale units and a 55-year restriction for rental units. The guidelines also say a recorded Affordability Agreement prevails over general ordinance requirements.

For an initial sale, the proposed affordable price must account for expected homeowners’ association fees, property taxes, private mortgage insurance and special assessments. Read the HOA disclosure guide alongside the inclusionary documents.

Eligible applicants are ranked randomly, such as through a lottery. The developer cannot require its identified lender. Acceptable purchase loans include fully documented, fully amortized 30-year fixed-rate loans.

What changes when you resell an inclusionary home?

The guidelines limit both the resale price and the buyer’s eligibility if the home is an inclusionary unit.

The resale price is the lesser of fair market value and the restricted resale price. A qualified appraiser selected by the Community Development Director establishes fair market value using three comparable properties.

The restricted price is the greater of the applicable affordable housing cost or a calculation that includes the purchase price, a share of any increase in affordable housing cost, adjusted permitted capital improvements and any applicable real estate professional transaction fee. Deferred maintenance can produce a deduction. The guidelines contain the calculation.

Before escrow closes, the guidelines say the seller must give the buyer a plain-language notice of affordability restrictions, including resale controls, approved in writing by the Director.

What occupancy and enforcement rules apply?

The guidelines say an owner must use the inclusionary home as a principal residence for at least ten of every twelve consecutive months, unless actively serving in the United States military.

Hardship absences of up to six months every five years require the Director’s verification. Leasing or subleasing requires prior permission from the Community Development Director. Annual monitoring includes a Certification of Owner-Occupancy, due within 21 days of the request letter.

During the 45-year term, default can give the city an option to purchase at the restricted resale price. The city normally allows an opportunity to cure; the City Manager may allow 180 days.

Selling above resale controls carries a separate consequence: the guidelines say buyer and seller are jointly and severally liable to the city for the entire purchase price.

The short version

If the home is an inclusionary unit, the recorded agreement affects its purchase, occupancy and resale.

Ask for the Affordability Agreement and plain-language notice, then check the title documents. The city’s guidelines encourage you to seek your own legal counsel. Housing questions can go to [email protected].

For a separate look at your home’s value, use the home value tool.