The purpose and intent of this chapter is to facilitate the
development of affordable housing in order to serve a variety of housing
needs within the city. To encourage the provision of housing for senior
citizens, lower and very low income households, the city shall provide
a density bonus to developers who meet the requirements established
in this chapter. The density bonus allows a density increase of at
least twenty-five (25) percent over the designated zoning density,
plus additional incentives if warranted. The requirements set forth
in this chapter shall apply citywide.
(Ord. O-2002-05 § 1, 2002)
For the purposes of this chapter, the following terms shall
be defined as follows:
means housing available at affordable housing cost or affordable rent at qualifying levels for lower or very low income households as defined by sections 23.23.050(f) and 23.23.060(b) of this chapter.
means an increased density of at least twenty-five (25) percent,
unless a lesser density is elected by the developer, over the otherwise
maximum allowable residential density under the applicable zoning
ordinance and land use element of the general plan as of the date
of the application which is granted to a developer of a housing development
agreeing to restrict a percentage of the dwelling units within the
housing development to senior citizen households, lower income households
or very low income households as required by this chapter. This applies
to both for rent and for sale housing.
means one or more groups of residential development projects
consisting of five (5) or more dwelling units or, upon recommendation
by the director of development services and approval by the city council,
such development projects consisting of four (4) or fewer dwelling
units. For the purposes of this chapter, “housing development”
also includes (1) a project to substantially rehabilitate and convert
an existing commercial building to residential use; (2) the substantial
rehabilitation of an existing multifamily dwelling where the result
of rehabilitation would be a net increase in available residential
units, or (3) a condominium conversion of existing units satisfying
the requirements of Section 65915.5 of the California Government Code.
means those person(s) or households as defined in Section
50079.5 of the California Health and Safety Code whose gross household
incomes do not exceed eighty (80) percent of the Orange County median
income adjusted for family size as determined by income limits published
by the State Department of Housing and Community Development.
means qualifying residents as defined by Section 51.3 of
the California Civil Code as amended from time to time.
means those person(s) or households as defined in Section
50105 of the California Health and Safety Code whose gross household
incomes do not exceed fifty (50) percent of the Orange County median
income adjusted for family size as determined by income limits published
by the State Department of Housing and Community Development.
(Ord. O-2002-05 § 1, 2002)
This chapter shall apply to all single-family and multiple family housing developments consisting of five (5) dwelling units or more, or such developments otherwise designated as “housing developments” pursuant to Section 23.23.020 hereof. The developer shall be entitled to only one density bonus even if more than one qualifying criterion is met.
(Ord. O-2002-05 § 1, 2002)
The following standards shall apply to all density bonus projects
in the city:
(1)
In order to encourage the development of low cost housing, an applicant
for a housing development may request, upon approval by the planning
commission and city council, one density bonus of at least twenty-five
(25) percent and possibly additional incentives if the applicant agrees
to construct at least:
(A)
Ten (10) percent of the total dwelling units of a housing development
as affordable housing for very low income households; or
(B)
Twenty (20%) percent of the dwelling units of a housing development
as affordable housing for lower income households; or
(C)
Fifty (50) percent of the total dwelling units of a housing development
for senior citizens households.
(2)
The total number of dwelling units allowed under a density bonus
shall be calculated by multiplying the number of units allowed under
the maximum allowable residential density of the applicable zoning
ordinance and land use element of the general plan as of the date
of the developer’s application by 1.25. If the result includes
a fraction of a unit, the result shall be rounded up to the next highest
full unit.
(3)
The density bonus shall not be included when determining the number
of dwelling units which is equal to ten (10) percent, twenty (20)
percent or fifty (50) percent, whichever is applicable, of the total
units in a housing development. If the calculation of the ten (10)
percent, twenty (20) percent or fifty (50) percent of the total units
in a housing development includes a fraction of a unit, the result
shall be rounded up to the next highest unit.
(4)
In cases where a density increase of less than twenty-five (25%)
is requested, no reduction will be permitted in the number of units
subject to the set-aside requirement.
(5)
Density bonus projects shall comply with all applicable development
standards, except those which may be waived or modified in conjunction
with the provision of an additional incentive as provided herein and
any other requirements of law.
(6)
A written legal contract which binds a density bonus project to the
requirements of this section shall be executed by both the city and
the applicant and shall be recorded as part of the property’s
deed(s) prior to the issuance of building permits. The agreement shall
be binding on future owners of the development.
(7)
In the event that any requirements contained herein are in conflict
with the requirements of any government housing programs in which
participation is required, the more restrictive requirement shall
apply.
(8)
Source for Area Median Income. The most recently-published Federal
Department of Housing and Urban Development median income figures
for the Anaheim/Santa Ana Partial Metropolitan Statistical Area, as
published with adjustments for family size, shall be used to determine
the area median income.
(9)
Set-Aside Unit Characteristics. All set-aside units shall have a
bedroom mix and amenities representative of the entire project. Set-aside
units shall also be reasonably distributed through the project.
(10)
Participation in Housing Programs. Application/property owner of
ownership density bonus projects shall participate in the county of
Orange mortgage revenue bond program or other programs approved by
the city when funds are available. Applicant/property owner or rental
density bonus projects shall participate in the county of Orange multifamily
revenue bond program or other programs approved by the city when funds
are available.
(11)
An additional incentive shall be evaluated on a case-by-case basis
based on information provided by the applicant.
(Ord. O-2002-05 § 1, 2002)
(b)
Full-time students who are not eligible to file a joint or head-of-household
Federal Income Tax Return cannot qualify as a low- or very low-income
household, regardless of their income.
(d)
In addition, priority shall be given to households of the following
sizes in relationship to the number of bedrooms available in each
set-aside unit:
|
No. of Bedrooms Available
|
First Priority
|
Second Priority
|
|---|---|---|
|
Bachelor
|
2 persons
|
1 person
|
|
1 bedroom
|
2 persons
|
1 person
|
|
2 bedrooms
|
4 persons
|
3 persons or less
|
|
3 bedrooms
|
6 persons
|
3 persons or less
|
(e)
The applicant/property owner of a rental density bonus project shall immediately attempt to secure tenants in accordance with subsections (a) through (d) of this section at any time that fewer than the required number of set-aside units are occupied by very low-income, low-income or senior households as required by this section. If there is not a sufficient number of qualified tenants to immediately occupy the units, the applicant/property owner shall comply with the marketing requirements contained in Section 23.23.050 (i)
(f)
Maximum Rent and Deposit Amounts.
(1)
Units targeted for low-income households shall have a monthly rent
that does not exceed thirty (30) percent of sixty (60) percent of
the monthly area median income as published and adjusted for family
size by the Federal Department of Housing and Urban Development.
(2)
Units targeted for very low-income households shall have a monthly
rent that does not exceed thirty (30) percent of fifty (50) percent
of the monthly area median income, as published and adjusted for family
size by the Federal Department of Housing and Urban Development.
(3)
Total move-in costs for very low- and low-income tenants occupying
set-aside units shall be limited to last month’s rent plus a
cleaning deposit not to exceed one (1) month’s rent.
(g)
Duration of Set-Aside Period. Set-aside units for which no additional
incentive is granted shall be subject to the conditions of this section
for a period of ten (10) years, otherwise, the period is thirty (30)
years, beginning when the units are first available.
(h)
Compliance Monitoring.
(1)
Within thirty (30) days of occupancy of a set-aside unit, the applicant/property
owner shall submit the name, address and income of each person occupying
set-aside units. Sworn and signed income statements shall also be
included.
(2)
The applicant/property owner shall submit annual compliance reports
which include the name, address and income of each person occupying
set-aside units. The compliance reports shall be due on the anniversary
of the initial release date.
(3)
The applicant/property owner shall maintain all project-related records
on file. The city shall have the right to inspect these records at
any reasonable time.
(4)
The city shall be entitled to have an independent audit of the applicant’s
records conducted once per year. Such audit shall be at the city’s
expense unless a violation of this section is discovered. The city
shall give at least forty-eight (48) hours notice prior to conducting
an audit.
(i)
Marketing Requirements. At any such time that set-aside units are
not occupied by very low-income, low-income or senior households as
required by this section and qualified tenants are not available to
immediately occupy the units, the applicant/property owner shall undertake
the following marketing effort:
(1)
Establish a telephone number with message capabilities to receive
inquiries on the set-aside units;
(2)
Advertise the unit(s) in a newspaper circulated within the city each
Sunday during which set-aside units are vacant. Advertising can be
cancelled at any time a sufficient number or qualified tenants has
been secured;
(3)
Post at least one (1) sign advertising the unit(s) on the subject
property in a place that is clearly visible from a public street;
(4)
Notify the Orange County Housing Authority of the availability of
the set-aside units.
(j)
Upward Mobility Allowance. At any time a tenant occupying a set-aside
unit no longer qualifies, that tenant may then be charged market rate
rent. If this occurs, any currently vacant unit shall then be designated
as a set-aside unit and the applicant shall immediately attempt to
secure tenants in accordance with this section. If no vacant units
are available at such time, the next available vacant unit shall be
designated as a set-aside unit.
(k)
Subletting of Units. No subletting of rental set-aside units shall
be allowed unless the following conditions are met;
(Ord. O-2002-05 § 1, 2002)
(a)
Units within ownership density bonus projects shall be either sold
to and occupied by, or vacant and available for exclusive sale to
households within specific income groups as follows:
(b)
Maximum Sales Prices and Deposit Amounts.
(1)
Ownership units targeted for very low income households or lower
income households shall be sold at a cost not to exceed affordable
housing cost as defined by Section 50052.5 of the California Health
and Safety Code, as may be amended from time to time.
(2)
The total mortgage payments for ownership units targeted for senior
citizen households including principal, interest, taxes, insurance
and homeowner association dues, (if applicable) shall not exceed thirty
(30) percent of the purchaser’s gross monthly income.
(3)
The total down-payment amount for ownership set-aside units, excluding
closing costs, shall not exceed ten (10) percent of the purchase price.
(c)
Duration of Set-Aside Period. Set-aside ownership units for which
no additional incentive is granted shall be subject to the conditions
of this section for a period of ten (10) years, otherwise, the period
shall be thirty (30) years, beginning when the units are first available.
(d)
Compliance Requirements.
(1)
The applicant/property owner shall record deed restrictions against
ownership set-aside units which limit their sale and resale to the
provisions of this section. Recordation shall be required prior to
the issuance of building permits.
(2)
The applicant/property owner shall record monetary liens on ownership
set-aside units in favor of the city, with the amount to be determined
by the director of development services, to discourage speculation.
The monetary liens shall be in effect for the entire set-aside period.
Recordation shall be required prior to the issuance of building permits.
(3)
Notwithstanding subsections (a) and (b) above, developments involving
the subdivision of land shall also have a deed restriction reiterating
the provisions of this section recorded prior to subdivision.
(e)
Marketing Requirements. Ownership set-aside units shall be, upon
final occupancy clearance by the city, held for sale until such time
as they are sold in accordance with the requirements of this section.
(f)
Owner-Occupancy Requirements. All ownership set-aside units shall
be occupied by their purchasers. No renting, leasing or subleasing
shall be allowed.
(Ord. O-2002-05 § 1, 2002)
(a)
If an applicant for a Housing development agrees to set aside the
requisite number of affordable units in exchange for a density bonus
as set forth by this section, the city shall provide at least one
of the following incentives, unless the city makes written findings
pursuant to Section 65915 (b) of the Government Code:
(1)
A reduction in site development standards or a modification of zoning
code requirements or architectural design 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; or
(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 the commercial, office,
industrial, or other land uses are compatible with the housing development
and the existing or planned development in the area where the proposed
housing development will be located; or
(3)
Other regulatory incentives or concessions proposed by the applicant
or the city that result in identifiable cost reductions, including
but not limited to, additional density bonus, public financing and
expedited processing.
(b)
Evaluation Criteria. The director of development services shall evaluate
and make recommendations upon requests for additional incentives based
on the following:
(1)
The additional incentive must be necessary to make the project economically
feasible;
(2)
The requested additional incentive shall not be detrimental to public
health, safety and welfare, nor injurious to property and/or improvements
within the project’s vicinity;
(3)
The requested additional incentive shall not result in an overall
development pattern that is incompatible with other structures in
the immediate vicinity;
(4)
Notwithstanding subdivision (1) above, the city may, at its sole
discretion, consider the provision of one (1) of the additional incentives
solely to increase the set-aside period from the amount of time required
when no additional incentive is provided (10 years) to the amount
of time required when an additional incentive is provided (30 years).
(c)
Request Process.
(1)
Request for additional incentives shall be made in writing to the
director of development services and shall accompany all other formal
application materials. The director of development services shall
evaluate requests using the criteria set forth in this section and
shall make a recommendation to the city council who shall make the
final decision.
(2)
The written request shall specify the incentive requested and shall
clearly indicate how the requested additional incentive is necessary
to make the project economically feasible.
(Ord. O-2002-05 § 1, 2002)
(a)
All density bonus projects shall be reviewed by the planning commission
and city council to determine the feasibility of the physical development
and related improvements to the property.
(Ord. O-2002-05 § 1, 2002)
