Note: Prior ordinance history: Ords. 94-884 and 94-888.
This chapter establishes procedures and requirements to facilitate the development of affordable housing that serve moderate income, low income, very low income, and senior households within the City. To encourage the provision of affordable housing, the City shall provide to developers who meet the requirements established by this chapter and Government Code Section 65915 (Density Bonus Law) a density bonus and the incentives identified in Government Code Section 65915.
(Ord. 2016-1155 § 1)
As used in this chapter, the following terms shall have the following meanings:
"Affordability"
is determined as thirty percent or less of the area median income (AMI) as adjusted for assumed household size for moderate income, low income, and very low income households as defined by the Health and Safety Code.
"Density bonus"
means a density increase 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 application by the developer to the City. The density bonus shall apply to residential developments of five or more units. The number of housing units to be reserved for low or very low income households or qualifying residents does not include the density bonus units.
"Equivalent financial value"
means the cost to developer/property owner based on the land cost per dwelling unit. The land cost per dwelling unit is determined by the difference in the value of the land with and without the density bonus.
"Housing development,"
as used in this chapter, means a development project for five or more residential units. For the purposes of this chapter, "housing development" also includes a subdivision or common interest development, as defined in Section 4100 of the Civil Code, approved by the City and consists of residential units or unimproved residential lots and either a project to substantially rehabilitate and convert an existing commercial building to residential use or the substantial rehabilitation of an existing multifamily dwelling, as defined in subdivision (d) of Government Code Section 65863.4, where the result of the rehabilitation would be a net increase in available residential units. For the purpose of calculating a density bonus, the residential units shall be on contiguous sites that are the subject of one development application, but do not have to be based upon individual subdivision maps or parcels. The density bonus shall be permitted in geographic areas of the housing development other than the areas where the units for the lower income households are located.
"Lower income households"
are as currently defined in Section 50079.5 of the Health and Safety Code and any subsequent amendments or revisions.
"Maximum allowable residential density"
means the density allowed under the zoning ordinance and land use element of the general plan, or if a range of density is permitted, means the maximum allowable density for the specific zoning range and land use element of the general plan applicable to the project. Where the density allowed under the zoning ordinance is inconsistent with the density allowed under the land use element of the general plan or, if the proposed density is in an area subject to the City's certified Local Coastal Program, the general plan or the City's certified Local Coastal Program density shall prevail.
"Qualifying resident" or "senior citizen"
means a person sixty-two years of age or older, or fifty-five years of age or older in a senior citizen housing development as defined in Section 51.3 of the Civil Code and any subsequent amendments or revisions.
"Very low income households"
are as currently defined in Section 50105 of the Health and Safety Code and any subsequent amendments or revisions.
(Ord. 2016-1155 § 1)
A. 
Pursuant to and in accordance with Government Code Section 65915, et seq., an applicant seeking a density bonus for a housing development shall file the completed application with and on a form provided by the Community Development Department. The City shall grant a density bonus and additional concessions or incentives pursuant to this chapter.
B. 
In order to qualify for the density bonus, a proposed housing development must consist of five or more dwelling units and meet one or more of the following criteria:
1. 
At least ten percent of the total units allowed by the maximum permitted density are designated for lowerincome households as defined in Section 50079.5 of the Health and Safety Code; or
2. 
At least five percent of the total units allowed by the maximum permitted density are designated for very lowincome households as defined in Section 50105 of the Health and Safety Code; or
3. 
A senior citizen housing development, as defined in Section 51.3 of the Civil Code, or mobilehome park 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 4100 of the Civil Code for persons and families of moderate income, as defined in Section 50093 of the Health and Safety Code, provided that all units in the development are offered to the public for purchase.
C. 
This chapter shall not be construed to supersede or in any way alter or lessen the effect or application of the California Coastal Act of 1976 (Division 20 commencing with Section 30000 of the Public Resources Code). In the coastal zone, the density bonus shall be calculated based on the otherwise maximum allowable residential density under the applicable zoning ordinance and land use element of the general plan as they apply to the project site. The otherwise maximum allowable residential density shall mean the maximum potential density modified by applying all sitespecific environmental development constraints identified within the coastal zoning ordinances and land use element certified by the coastal commission. The density bonus shall be applicable to housing developments consisting of five or more units.
D. 
In the coastal zone, any housing development approved pursuant to Government Code Section 65915 shall be consistent, to the maximum extent feasible, and in a manner most protective of coastal resources, with all otherwise applicable certified local coastal program policies and development standards. Approval of development proposed under this section shall require a finding that the development, if it had been proposed without the twenty-five percent density increase, would have been fully consistent with the policies and development standards of the certified local coastal program. In cases where a density increase is granted pursuant to Government Code Section 65915 which results in development inconsistent with otherwise applicable certified local coastal program policies and development standards, such as height, parking and setback requirements, the relief granted from such standards shall be considered an additional incentive under Government Code Section 65915.
(Ord. 2016-1155 § 1)
A. 
To be eligible for a density bonus, the developer/property owner must sign a binding agreement with the City which sets forth the conditions and guidelines to be met in the implementation of the density bonus law requirements pursuant to Government Code Sections 65915(c) and 65917. The agreement will also establish specific compliance standards and remedies available to the City upon failure by the developer/property owner to make units accessible to intended residents. To ensure compliance, the city shall require a security in an amount and in a form acceptable to the City Manager, City Attorney, and the Community Development Department.
B. 
The developer/property owner shall agree to, and the City shall ensure, continued affordability of all lowand very low-income units that qualified the applicant for the award of the density bonus for 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 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.
C. 
The developer/property owner shall agree to, and the City shall ensure that, the initial occupant of the moderateincome units that are directly related to the receipt of the density bonus in the common interest development, as defined in Section 4100 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 local government 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 local government shall recapture any initial subsidy, as defined in subsection (C)(2), and its proportionate share of appreciation, as defined in subsection (C)(3), which amount shall be used within five years for any of the purposes described in subdivision (e) of Section 33334.2 of the Health and Safety Code that promote home ownership.
2. 
The local government'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. 
The local government's proportionate share of appreciation shall be equal to the ratio of the local government's initial subsidy to the fair market value of the home at the time of initial sale.
D. 
Where there is a direct financial contribution to a housing development pursuant to Government Code Section 65915 through participation in the cost of infrastructure, write-down of land costs, or subsidizing the cost of construction, the City shall assure continued availability for lowand moderate-income units for thirty years. When appropriate, the agreement provided for in Section 19.65.040 shall specify the mechanisms and procedures necessary to carry out this section.
(Ord. 2016-1155 § 1)
A. 
Low-Income Units. For housing developments meeting the criteria of Section 19.65.030(B)(1), the density bonus shall be calculated as follows:
Percentage Low-Income Units
Percentage Density Bonus
Incentives/Concessions
10
20
1
11
21.5
1
12
23
1
13
24.5
1
14
26
1
15
27.5
1
17
30.5
1
18
32
1
19
33.5
1
20—29
35
2
≥ 30
35
3
B. 
Very Low-Income Units. For housing developments meeting the criteria of Section 19.65.030(B)(2), the density bonus shall be calculated as follows:
Percentage Very Low-Income Units
Percentage Density Bonus
Incentives/Concessions
5
20
1
6
22.5
1
7
25
1
8
27.5
1
9
30
1
10
32.5
2
11—14
35
2
≥ 15
35
3
C. 
Senior Housing. For housing developments meeting the criteria of Section 19.65.030(B)(3), the density bonus shall be twenty percent of the number of senior housing units.
D. 
Moderate Income Units. For housing developments meeting the criteria of Section 19.65.030(B)(4), the density bonus shall be calculated as follows:
Percentage Moderate-Income Units
Percentage Density Bonus
Incentives/Concessions
10
5
1
11
6
1
12
7
1
13
8
1
14
9
1
15
10
1
16
11
1
17
12
1
18
13
1
19
14
1
20
15
2
21
16
2
22
17
2
23
18
2
24
19
2
25
20
2
26
21
2
27
22
2
28
23
2
29
24
2
30
25
3
31
26
3
32
27
3
33
28
3
34
29
3
35
30
3
36
31
3
37
32
3
38
33
3
39
34
3
40
35
3
E. 
All density calculations resulting in fractional units shall be rounded up to the next whole number. The granting of a density bonus shall not be interpreted, in and of itself, to require a general plan amendment, local coastal plan amendment, zoning change, or other discretionary approval.
F. 
Land Donation. When an applicant for a tentative subdivision map, parcel map, or other residential development approval donates land to the City in accordance with the state Density Bonus Law, the applicant shall be entitled to a fifteen percent increase above the otherwise maximum allowable residential density for the entire development, as follows:
Percentage Very Low-Income Units
Percentage Density Bonus
10
15
11
16
12
17
13
18
14
19
15
20
16
21
17
22
18
23
19
24
20
25
21
26
22
27
23
28
24
29
25
30
26
31
27
32
28
33
29
34
30
35
(Ord. 2016-1155 § 1)
A. 
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.
B. 
Such concession shall be specific to the individual project and may include:
1. 
A modification of development standards pertaining to building height, open space, lot size requirements, street access, off-street parking, landscaping, fencing or other development standards, or off-site improvements;
2. 
Reduction of development processing fees, not including impacts fees;
3. 
In the coastal zone, any incentives must be consistent to the maximum extent feasible, and in a manner most protective of coastal resources, with all otherwise applicable certified local coastal program policies and standards. In choosing between incentives, priority shall be given to that incentive most protective of coastal resources so as to avoid any development within or adjacent to wetlands or other environmentally sensitive areas, or any development within or adjacent to geologic hazard areas, or any development which would result in any significant adverse impacts on coastal access and recreation.
C. 
An applicant for a density bonus pursuant to Section 19.65.030 may submit to the City a proposal for the specific incentives or concessions that the applicant requests pursuant to this chapter, and may request a meeting with the City. The City shall grant the concession or incentive requested by the applicant unless the City makes a written finding, based upon substantial evidence, of any 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 the density bonus agreement.
2. 
The concession or incentive would have a specific adverse impact, as defined in paragraph (2) of subdivision (d) of Government Code Section 65589.5, 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 lowand moderate-income households.
3. 
The concession or incentive would be contrary to State or Federal law.
D. 
The developer and City staff shall negotiate to determine the incentives which will make the project economically feasible with minimum deviations from established standards and minimal impacts of health, safety and welfare.
(Ord. 2016-1155 § 1)
A. 
"Development standard" includes a site or construction condition, including, but not limited to, a height limitation, a setback requirement, a floor area ratio, an onsite open-space requirement, or a parking ratio that applies to a residential development pursuant to any ordinance, general plan element, specific plan, charter, or other local condition, law, policy, resolution, or regulation.
B. 
The City may not apply any development standard that will have the effect of physically precluding the construction of a development meeting the criteria of Section 19.65.030(B) at the densities or with the concessions or incentives permitted by this chapter. An applicant may submit to the City a proposal for the waiver or reduction of development standards that will have the effect of physically precluding the construction of a development meeting the criteria of Section 19.65.030(B) at the densities or with the concessions or incentives permitted under this chapter, and may request a meeting with the City.
C. 
The City is not required to waive or reduce development standards if the waiver or reduction would have a specific, adverse impact, as defined in paragraph (2) of subdivision (d) of Government Code Section 65589.5, upon health, safety, or the physical environment, and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact. The City is not required to waive or reduce development standards if such waiver or reduction would have an adverse impact on any real property that is listed in the California Register of Historical Resources, or to grant any waiver or reduction that would be contrary to State or Federal law.
D. 
A proposal for the waiver or reduction of development standards pursuant to this section shall neither reduce nor increase the number of incentives or concessions to which the applicant is entitled pursuant to Section 19.65.060.
E. 
Upon the request of the developer, the City shall not require a vehicular parking ratio, inclusive of disabled and guest parking, of a development meeting the criteria of Section 19.65.030(B) that exceeds the following ratios:
1. 
Zero to one bedroom: one on-site parking space.
2. 
Two to three bedrooms: two on-site parking spaces.
3. 
Four and more bedrooms: two and one-half parking spaces.
F. 
If the total number of parking spaces required for a development is other than a whole number, the number shall be rounded up to the next whole number. For purposes of this section, a development may provide "on-site parking" through tandem parking or uncovered parking, but not through on-street parking.
G. 
This section shall apply to a development that meets the requirements of Section 19.65.030(B) but only at the request of the applicant. An applicant may request parking incentives or concessions beyond those provided in this section.
(Ord. 2016-1155 § 1)
A. 
When an applicant proposes to construct a housing development that conforms to the requirements of Section 19.65.030(B) 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 subsection C.
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 subsection B.
C. 
Notwithstanding any requirement of this section, a city, county, or city and county 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.
D. 
"Child care facility," as used in this section, means a facility installed, operated, and maintained for the nonresidential care of children as defined under applicable state licensing requirements for the facility other than a family day care home, but including, and not limited to, infant centers, preschools, extended day care facilities, and school age child care centers.
E. 
"Density bonus" as used in this section means a floor area ratio bonus over the otherwise maximum allowable density permitted under the applicable zoning ordinance and land use elements of the general plan of the City of:
1. 
A maximum of five square feet of floor area for each one square foot of floor area contained in the child care facility for existing structures.
2. 
A maximum of ten square feet of floor area for each one square foot of floor area contained in the child care facility for new structures.
3. 
For purposes of calculating the density bonus under this section, both indoor and outdoor square footage requirements for the child care facility as set forth in applicable state child care licensing requirements shall be included in the floor area of the child care facility.
F. 
"Developer" means the owner or other person, including a lessee, having the right under the applicable zoning ordinance of the City to make an application for development approvals for the development or redevelopment of a commercial project.
G. 
"Floor area" means as to a commercial project, the floor area as calculated under the applicable zoning ordinance of the City and as to a child care facility, the total area contained within the exterior walls of the facility and all outdoor areas devoted to the use of the facility in accordance with applicable state child care licensing requirements.
H. 
The City may establish a procedure by ordinance to grant a developer of a commercial project, containing at least fifty thousand square feet of floor area, a density bonus when that developer has set aside at least two thousand square feet of floor area and three thousand outdoor square feet to be used for a child care facility. The granting of a bonus shall not preclude the City from imposing necessary conditions on the project or on the additional square footage. Projects constructed under this section shall conform to height, setback, lot coverage, architectural review, site plan review, fees, charges, and other health, safety, and zoning requirements generally applicable to construction in the zone in which the property is located. A consortium with more than one developer may be permitted to achieve the threshold amount for the available density bonus with each developer's density bonus equal to the percentage participation of the developer. This facility may be located on the project site or may be located offsite as agreed upon by the developer and the City. If the child care facility is not located on the site of the project, the City shall determine whether the location of the child care facility is appropriate and whether it conforms with the intent of this section. The child care facility shall be of a size to comply with all state licensing requirements in order to accommodate at least forty children.
I. 
The developer may operate the child care facility itself or may contract with a licensed child care provider to operate the facility. In all cases, the developer shall show ongoing coordination with a local child care resource and referral network or local governmental child care coordinator in order to qualify for the density bonus.
J. 
If the developer uses space allocated for child care facility purposes, in accordance with Section 19.65.030(B), for purposes other than for a child care facility, an assessment based on the square footage of the project may be levied and collected by the City. The assessment shall be consistent with the market value of the space. If the developer fails to have the space allocated for the child care facility within three years, from the date upon which the first temporary certificate of occupancy is granted, an assessment based on the square footage of the project may be levied and collected by the City in accordance with procedures to be developed by the City. The assessment shall be consistent with the market value of the space. A penalty levied against a consortium of developers shall be charged to each developer in an amount equal to the developer's percentage square feet participation. Funds collected pursuant to this subdivision shall be deposited by the City into a special account to be used for child care services or child care facilities.
K. 
Once the child care facility has been established, prior to the closure, change in use, or reduction in the physical size of, the facility, the City shall be required to make a finding that the need for child care is no longer present, or is not present to the same degree as it was at the time the facility was established.
(Ord. 2016-1155 § 1)
A. 
When an applicant for approval to convert apartments to a condominium project agrees to provide at least thirty-three percent of the total units of the proposed condominium project to persons and families of low or moderate income as defined in Section 50093 of the Health and Safety Code, or fifteen percent of the total units of the proposed condominium project to lower income households as defined in Section 50079.5 of the Health and Safety Code, and agrees to pay for the reasonably necessary administrative costs incurred by the City pursuant to this section, the City shall either: (1) grant a density bonus; or (2) provide other incentives of equivalent financial value. The City may place such reasonable conditions on the granting of a density bonus or other incentives of equivalent financial value as it finds appropriate, including, but not limited to, conditions which assure continued affordability of units to subsequent purchasers who are persons and families of low and moderate income or lower income households.
B. 
For purposes of this section, "density bonus" means an increase in units of twenty-five percent over the number of apartments, to be provided within the existing structure or structures proposed for conversion.
C. 
For purposes of this section, "other incentives of equivalent financial value" shall not be construed to require the City to provide cash transfer payments or other monetary compensation but may include the reduction or waiver of requirements which the City might otherwise apply as conditions of conversion approval.
D. 
An applicant for approval to convert apartments to a condominium project may submit to the City a preliminary proposal pursuant to this section prior to the submittal of any formal requests for subdivision map approvals. The City shall, within ninety days of receipt of a written proposal, notify the applicant in writing of the manner in which it will comply with this section. The City shall establish procedures for carrying out this section, which shall include legislative body approval of the means of compliance with this section.
E. 
Nothing in this section shall be construed to require the City to approve a proposal to convert apartments to condominiums.
F. 
An applicant shall be ineligible for a density bonus or other incentives under this section if the apartments proposed for conversion constitute a housing development for which a density bonus or other incentives were provided under Government Code Section 65915.
(Ord. 2016-1155 § 1)
Applications for affordable housing projects not qualifying for or requesting a density bonus may be considered for incentives or concessions at the discretion of the City Council. The City may require an affordable housing agreement to ensure the availability of the targeted units for low and moderate income households for a period of thirty years and may execute such other provisions as may be necessary to implement the agreement.
For development within the City's LCP jurisdiction, any housing development approved shall be consistent in a manner most protective of coastal resources, with all of the City's otherwise applicable certified Local Coastal Program policies and standards.
(Ord. 2016-1155 § 1)