Density Bonus Law, as set forth in Government Code Section 65915, et seq., requires that a local government grant a density bonus and concessions or incentives to developers of housing developments and child care facilities when meeting the requirements set out by the law. This chapter establishes procedures to implement the Density Bonus Law.
(Ord. 1930 § 26, 2008)
A. 
The city shall grant a density bonus and concessions or incentives listed in Section 17.17.040, or provide other concessions or equivalent financial incentives, when an applicant for a housing development proposes and agrees to construct any one of the following:
1. 
Ten percent of the total dwelling units reserved for lower income households as defined in Section 50079.5 of the Health and Safety Code (eighty percent of median family income);
2. 
Five percent of the total dwelling units reserved for very low income households as defined in Section 50105 of the Health and Safety Code (fifty percent of median family income);
3. 
A senior citizen housing development, as defined in Sections 51.3 and 51.12 of the Civil Code, that limits residency based on age requirements for housing for older persons pursuant to Section 798.76 or 799.5 of the Civil Code; or
4. 
Ten percent of the total dwelling units in a common interest development as defined in Section 1351 of the Civil Code for persons and families of moderate income, as defined in Section 50093 of the Health and Safety Code (one hundred twenty percent of median family income), provided that all units in the development are offered to the public for purchase.
B. 
The amount of the density bonus to which the applicant is entitled shall vary according to the amount by which the percentage of affordable dwelling units meets the percentages above, and is specified in Section 17.17.030. For purposes of calculating the amount of the density bonus, the applicant who requests a density bonus pursuant to this subdivision shall elect whether the bonus shall be awarded on the basis of subparagraphs 1, 2, 3, or 4 of Section 17.17.020(A).
C. 
An applicant shall agree to, and the city shall ensure, continued affordability of all low and very low-income units that qualified the applicant for the density bonus for a period of thirty years (or a longer period of time if required by the construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy program). Rents for the lower and very-low income density bonus units shall be set at an affordable rent as defined in Section 50053 of the Health and Safety Code. Owner-occupied units shall be available at an affordable housing cost as defined in Section 50052.5 of the Health and Safety Code.
D. 
An applicant shall agree to, and the city shall ensure that, the initial occupant of moderate-income units that are directly related to the receipt of the density bonus in the common interest development, as defined in Section 1351 of the Civil Code, are persons and families of moderate income, as defined in Section 50093 of the Health and Safety Code, and that the units are offered at an affordable housing cost, as that cost is defined in Section 50052.5 of the Health and Safety Code. The city shall enforce an equity-sharing agreement, unless it is in conflict with the requirements of another public funding source or law. The following apply to the equity-sharing agreement:
1. 
Upon resale, the seller of the unit shall retain the value of any improvements, the down-payment, and the seller's proportionate share of appreciation. The city shall recapture any initial subsidy and its proportionate share of appreciation, which shall then be used within three years for any of the purposes described in subdivision (e) of Section 33334.2 of the Health and Safety Code that promote homeownership.
2. 
For purposes of this subdivision, the city's initial subsidy shall be equal to the fair market value of the home at the time of initial sale minus the initial sale price to the moderate-income household, plus the amount of any down-payment assistance or mortgage assistance. If upon resale the market value is lower than the initial market value, then the value at the time of the resale shall be used as the initial market value.
3. 
For purposes of this subdivision, the city's proportionate share of appreciation shall be equal to the ratio of the initial subsidy to the fair market value of the home at the time of initial sale.
(Ord. 1930 § 26, 2008)
A. 
The density bonus provided by this section shall apply to housing developments consisting of five or more dwelling units.
B. 
A density bonus for a housing development means a density increase over the otherwise maximum allowable residential density under the land use element of the general plan, and listed below. The applicant may elect to accept a lesser percentage of density bonus. The amount of density bonus to which the applicant is entitled shall vary according to the amount by which the percentage of affordable housing units exceeds the percentage established in Section 17.17.020(A).
Land Use Designation
Corresponding Zone
Maximum Density Before Bonus Applied
Low-Density Residential
R-1 Low-Density Residential
8.0 dwelling units per acre
Medium-Density Residential
R-2 Medium-Density Residential
17.0 dwelling units per acre
High-Density Residential
R-3 High-Density Residential
40.0 dwelling units per acre
R-4 Maximum-Density Residential
Multiple family structures are not permitted in the R-1 and R-2 zones
C. 
For housing developments meeting the criteria of Section 17.17.020(A)(1), the density bonus shall be calculated as follows:
Percentage of Lower Income Units
Percentage of Density Bonus
10
20.0
11
21.5
12
23.0
13
24.5
14
26.0
15
27.5
16
29.0
17
30.5
18
32.0
19
33.5
20
35.0
D. 
For housing developments meeting the criteria of Section 17.17.020(A)(2), the density bonus shall be calculated as follows:
Percentage of Very Low Income Units
Percentage of Density Bonus
5
20.0
6
22.5
7
25.0
8
27.5
9
30.0
10
32.5
11
35.0
E. 
For housing developments meeting the criteria of Section 17.17.020(A)(3), the density bonus shall be twenty percent.
F. 
For housing developments meeting the criteria of Section 17.17.020(A)(4), the density bonus shall be calculated as follows:
Percentage of Moderate Income Units
Percentage of Density Bonus
10
5.0
11
6.0
12
7.0
13
8.0
14
9.0
15
10.0
16
11.0
17
12.0
18
13.0
19
14.0
20
15.0
21
16.0
22
17.0
23
18.0
24
19.0
25
20.0
26
21.0
27
22.0
28
23.0
29
24.0
30
25.0
31
26.0
32
27.0
33
28.0
34
29.0
35
30.0
36
31.0
37
32.0
38
33.0
39
34.0
40
35.0
G. 
All density calculations resulting in fractional units shall be rounded up to the next whole number.
H. 
The granting of a density bonus shall not be interpreted, in and of itself, to require a general plan amendment, zoning change or other discretionary approval.
I. 
As used in Section 17.17.020(A), "total units" or "total dwelling units" does not include units permitted by a density bonus awarded pursuant to this section or any local law granting a greater density bonus.
J. 
Nothing in this section shall be construed to prohibit the city from granting a density bonus greater than what is described in this section for a development that meets the requirements of this chapter or from granting a proportionately lower density bonus than what is required by this section for developments that do not meet the requirements of this chapter.
(Ord. 1930 § 26, 2008; Ord. 2127 § 5, 2016)
A. 
An applicant for a density bonus pursuant to Section 17.17.030 may submit to the city a proposal for the specific incentives or concessions that the applicant requests pursuant to this section, and may request a meeting with the city.
B. 
Concession or incentive means any of the following:
1. 
A reduction in site development standards or a modification of zoning code requirements that exceed the minimum building standards approved by the California Building Standards Commission as provided in Part 2.5 (commencing with Section 18901) of Division 13 of the Health and Safety Code, including, but not limited to, a reduction in setback and square footage requirements and in the ratio of vehicular parking spaces that would otherwise be required that results in identifiable, financially sufficient and actual cost reductions;
2. 
Approval of mixed use zoning in conjunction with the housing development if commercial, office, industrial, or other land uses will reduce the cost of the housing development and if existing or planned commercial, office, industrial or other land uses are compatible with the housing project and the existing or planned development of the area;
3. 
Other regulatory incentives or concessions proposed by the developer or the city that result in identifiable, financially sufficient and actual cost reductions.
C. 
This subdivision does not limit or require the provision of direct financial incentives for the housing development, including the provision of publicly owned land by the city, or the waiver of fees or dedication requirements.
D. 
The city shall grant the concession or incentive requested by the applicant unless the city makes a written finding, based upon substantial evidence, of either of the following:
1. 
The concession or incentive is not required in order to provide for affordable housing costs, as defined in Section 50052.5 of the Health and Safety Code or for rents for the targeted units to be set as specified in Section 17.17.020;
2. 
The concession or incentive would have a specific adverse impact. as defined in Government Code Section 65589.5(d)(2), upon public health and safety or the physical environment or on any real property that is listed in the California Register of Historical Resources and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact without rendering the development unaffordable to low- and moderate-income households.
E. 
The applicant shall receive the following number of incentives or concessions:
1. 
One incentive or concession for projects that include at least ten percent of the total units for lower income households, at least five percent for very low income households, or at least ten percent for persons and families of moderate income in a common interest development;
2. 
Two incentives or concessions for projects that include at least twenty percent of the total units for lower income households, at least ten percent for very low income households, or at least twenty percent for persons and families of moderate income in a common interest development;
3. 
Three incentives or concessions for projects that include at least thirty percent of the total units for lower income households, at least fifteen percent for very low income households, or at least thirty percent for persons and families of moderate income in a common interest development.
F. 
The granting of a concession or incentive shall not be interpreted, in and of itself, to require a general plan amendment, zoning change or other discretionary approval.
(Ord. 1930 § 26, 2008)
A. 
At the time a developer of a proposed housing development, seeking a density bonus and a concession or incentive under this chapter and Government Code Section 65915, files formal application(s) for approval of the proposed development with the planning department, the developer shall provide the following information:
1. 
A vicinity map and preliminary site plan, drawn to scale, including building footprints, driveway and parking layout;
2. 
Identification of the location, acreage and the maximum number of units allowed under the zoning and the land use designated under the general plan;
3. 
Identification of the total number of units proposed including the kind and number of target units as set forth in Section 17.17.020 which the proposed housing development qualifies for a density bonus and concession;
4. 
Identification of the concession which is requested by the developer or a list of any alternative concessions which would provide, in the developer's opinion, equivalent financial incentives to the concession requested;
5. 
The specific financial information and data relied upon by the developer which establishes the monetary value of the regulatory concessions requested by the developer and a concise statement of how such value was calculated. A clear statement of how the requested concession is necessary to make the proposed housing development economically feasible, sufficiently detailed to enable city staff to examine the conclusions reached by the developer;
6. 
Such other pertinent information as the director of planning may require to enable the city to adequately analyze the economic feasibility of the proposed housing development with respect to the requested additional concession and other concessions which may be made available.
(Ord. 1930 § 26, 2008)
A. 
Applicants requesting a density bonus, shall draft and agree to enter into a density bonus housing agreement with the city. The density bonus housing agreement shall include, at a minimum, the following:
1. 
A general description of the development, including whether the development will contain units for rent or for sale;
2. 
A description of additional incentives or equivalent financial incentives to be provided by the city;
3. 
The total number of market-rate units and affordable housing units, as well as a description of the household income group(s) to be accommodated by the housing development;
4. 
The number of bedrooms in each market-rate unit and each affordable unit;
5. 
The square footage of each market-rate unit and of each affordable unit measured from the interior walls of the unit and including heated and unheated areas;
6. 
The location in the development of each market-rate and affordable housing unit;
7. 
A schedule for completion and occupancy of target units. If construction of dwelling units is to be phased, a phasing plan stating the number of market-rate and affordable housing units in each phase;
8. 
The estimated sale price or monthly rent of each market-rate unit and each affordable housing unit;
9. 
Documentation and plans regarding the exterior appearances, materials, and finishes of the housing development and each of its individual units;
10. 
A marketing plan the applicant proposes to implement to promote the sale or rental of the affordable units within the development to eligible households;
11. 
Detailed description of the standards for determining the affordable rent or affordable sales price and housing cost;
12. 
Where very low or lower income units are proposed, a stipulation that the target units shall be kept available only to members of the identified income group or only to qualifying residents for a holding period as specified in Section 17.17.020(C);
13. 
A description of the means by which continued availability shall be secured and enforced and the procedures under which the very low and lower income target units shall be leased or sold during such period;
14. 
A stipulation that the initial occupant of moderate-income units pursuant to Section 17.17.020(D) are persons and families of moderate income, as defined in Section 50093 of the Health and Safety Code, and that the units are offered at an affordable housing cost, as that cost is defined in Section 50052.5 of the Health and Safety Code;
15. 
A description of remedies for breach of the agreement by either party (the city may identify tenants or qualified purchasers as third party beneficiaries under the agreement);
16. 
The following disclosures shall be included in all sale or lease agreements associated with any project that includes a density bonus:
a. 
For each condominium unit offered for sale, a recorded disclosure statement that the unit is assigned a specified number of parking spaces and giving notice that guest parking is not provided on site pursuant to state laws in effect at the time of construction.
b. 
For each apartment offered for lease, a written disclosure in each lease agreement that the unit is assigned a specified number of parking spaces and giving notice that guest parking is not provided on site pursuant to state laws in effect at the time of construction.
c. 
For each unit, whether offered for sale or lease, a written statement, signed by the purchaser or lessee, acknowledging that on-street parking may be unavailable.
17. 
Other provisions to ensure implementation and compliance with this chapter, and such other terms and provisions, not inconsistent with Government Code Section 65915, that the city may require.
B. 
In the case of for-sale housing developments, the density bonus housing agreement shall provide for the following conditions governing the initial sale and use of target units during the applicable use restriction period:
1. 
Target units shall, upon initial sale, be sold to eligible very low or lower income households at an affordable sales price and housing cost, or to qualified residents (i.e., maintained as senior citizen housing) as defined in Chapter 17.04, or in the case of common interest developments, to moderate income households;
2. 
Target units shall be initially owner-occupied;
3. 
The initial purchaser of very low and lower income target units, as well as units targeted to senior citizen housing, shall execute an instrument or agreement approved by the city restricting the sale of the target unit in accordance with this chapter during the applicable use restriction period. Such instrument or agreement shall be recorded against the parcel containing the target unit and shall contain such provisions as the city may require to ensure continued compliance with this chapter and the Government Code Section 65915.
C. 
In the case of rental housing developments, the density bonus housing agreement shall provide for the following conditions governing the use of target units during the use restriction period:
1. 
The rules and procedures for qualifying tenants, establishing affordable rent, filling vacancies and maintaining target units for qualified tenants;
2. 
Provisions requiring owners to verify tenant incomes and maintain books and records to demonstrate compliance with this chapter;
3. 
Provisions requiring owners to submit an annual report to the city, which includes the name, address, and income of each person occupying target units, and which identifies the bedroom size and monthly rent or cost of each target unit.
D. 
The terms of the draft agreement shall be reviewed and revised as appropriate by the planning director, who shall formulate a recommendation to the planning commission for final approval. The planning commission, on behalf of the city, shall authorize the execution of density bonus housing agreements that meet all of the requirements of this chapter and Government Code Section 69515.
E. 
Following execution of the agreement by all parties, the completed density bonus housing agreement shall be recorded on the parcel or parcels designated for the construction of target units. The approval and recordation shall take place prior to final map approval, or, where a map is not being processed, prior to issuance of building permits for such parcels or units. The density bonus housing agreement shall be binding to all future owners and successors in interest.
(Ord. 1930 § 26, 2008; Ord. 2107 § 4, 2016)
A. 
When an applicant for a tentative subdivision map, parcel map, or other residential development approval donates land to the city as provided for in this subdivision, the applicant shall be entitled to a fifteen percent increase above the otherwise maximum allowable residential density under the applicable zoning ordinance and land use element of the general plan for the entire development, as follows:
Percentage of Very Low Income
Percentage of Density Bonus
10
15 0
11
16.0
12
17.0
13
18.0
14
19.0
15
20.0
16
21.0
17
22.0
18
23.0
19
24.0
20
25.0
21
26.0
22
27.0
23
28.0
24
29.0
25
30.0
26
31.0
27
32.0
28
33.0
29
34.0
30
35.0
B. 
This increase shall be in addition to any increase in density mandated by Section 17.17.020, up to a maximum combined mandated density increase of thirty-five percent if an applicant seeks both the increase required pursuant to this subdivision and Section 17.17.020. Nothing in this subdivision shall be construed to enlarge or diminish the authority of the city to require a developer to donate land as a condition of development. An applicant shall be eligible for the increased density bonus described in this subdivision if all of the following conditions are met:
1. 
The applicant donates and transfers the land no later than the date of approval of the final subdivision map, parcel map or residential development application;
2. 
The developable acreage and zoning classification of the land being transferred are sufficient to permit construction of units affordable to very low income households in an amount not less than ten percent of the number of residential units of the proposed development;
3. 
The transferred land is at least one acre in size or of sufficient size to permit development of at least forty units, has the appropriate general plan designation, is appropriately zoned for development as affordable housing, and is or will be served by adequate public facilities and infrastructure. The land shall have appropriate zoning and development standards to make the development of the affordable units feasible. No later than the date of approval of the final subdivision map, parcel map or of the residential development, the transferred land shall have all of the permits and approvals, other than building permits, necessary for the development of the very low income housing units on the transferred land except that the city may subject the proposed development to subsequent design review to the extent authorized by subdivision (i) of Section 65583.2 if the design is not reviewed by the city prior to the time of transfer;
4. 
The transferred land and the affordable units shall be subject to a deed restriction ensuring continued affordability of the units consistent Sections 17.17.020(C)—(D), which shall be recorded on the property at the time of dedication;
5. 
The land is transferred to the local agency or to a housing developer approved by the local agency. The local agency may require the applicant to identify and transfer the land to the developer;
6. 
The transferred land shall be within the boundary of the proposed development or, within one-quarter mile of the boundary of the proposed development subject to city approval.
(Ord. 1930 § 26, 2008)
A. 
When an applicant proposes to construct a housing development that conforms to the requirements of Section 17.17.020 and includes a child care facility, that will be located on the premises of, as part of, or adjacent to, the project, the city shall grant either of the following:
1. 
An additional density bonus that is an amount of square feet of residential space that is equal to or greater than the amount of square feet in the child care facility;
2. 
An additional concession or incentive that contributes significantly to the economic feasibility of the construction of the child care facility.
B. 
The city shall require, as a condition of approving the housing development. that the following occur:
1. 
The child care facility shall remain in operation for a period of time that is as long as or longer than the period of time during which the density bonus units are required to remain affordable pursuant to Section 17.17.020;
2. 
Of the children who attend the child care facility, the children of very low income households, lower income households, or families of moderate income shall equal a percentage that is equal to or greater than the percentage of dwelling units that are required for very low income households, lower income households, or families of moderate income pursuant to Section 17.17.020.
C. 
Notwithstanding any requirement herein, the city shall not be required to provide a density bonus or concession for a child care facility if it finds, based upon substantial evidence, that the community has adequate child care facilities.
(Ord. 1930 § 26, 2008)
A. 
Target units should be constructed concurrently with nonrestricted units unless both the city and the applicant agree within the density bonus housing agreement to an alternative schedule for development.
B. 
In determining the maximum affordable rent or affordable sales price of target units the following house-hold and unit size assumptions shall be used:
0 bedroom (studio)
1 person
1 bedroom
2 persons
2 bedrooms
3 persons
3 bedrooms
4 persons
4 bedrooms
6 persons
C. 
Target units should be built on-site wherever possible and, when practical, be dispersed within the housing development. Where feasible, the number of bedrooms of the target units should be equivalent to the bedroom mix of the non-target units of the housing development; except that the developer may include a higher proportion of target units with more bedrooms. The design and appearance of the target units shall be compatible with the design of the total housing development. Housing developments shall comply with all applicable development standards, except those that may be modified as provided by this chapter.
D. 
Circumstances may arise in which the public interest would be served by allowing some or all of the target units associated with one housing development to be produced and operated at an alternative development site. Where the developer and the city form such an agreement, the resulting linked developments shall be considered a single housing development for purposes of this chapter. Under these circumstances, the developer shall be subject to the same requirements of this chapter for the target units to be provided on the alternative site.
(Ord. 1930 § 26, 2008)