The purpose of the affordable housing density bonus overlay district is to expand housing opportunities for very low-, low- and moderate-income persons throughout the city in accordance with requirements of California Government Code Sections 65915 through 65918. Additional purposes are as follows:
A. 
To provide increased residential densities to developers who guarantee that a portion of their housing development will be affordable by households of very low, low or moderate income;
B. 
To provide increased residential densities to developers who donate land to develop units for very low-, low- or moderate-income households;
C. 
To ensure affordable units are constructed and located to appear similar to market-rate units;
D. 
To provide concessions when needed to offset the costs of developing affordable housing for very low-, low- and moderate-income households.
(Ord. 2011-02 §1)
The following definitions have unique applicability to provisions contained within this chapter and may not apply to other chapters unless specifically referenced.
"Density bonus"
means an additional number of units to be made available to qualified housing projects, in the manner provided by this chapter, equal to twenty-five percent over the maximum density allowed on the site proposed to be developed, according to the land use elements of the general plan.
"Destination"
means any parcel or site upon which the opportunity for density bonus is realized, and for which an agreement with the city has been executed in accordance with requirement of this chapter.
"Financially equivalent incentive"
means an incentive, in addition to the bonus allowed, based on land per unit.
"Incentive"
means an incentive granted, in addition to the density bonus, as necessary to establish the economic feasibility of the development of low- and very low-income and senior housing.
"Income limits"
means income distribution for low- and very low-income published by the Department of Housing and Community Development in the California Code of Regulations (Title 25, Section 6932).
"Origination parcel"
means any parcel or site from which the opportunity for density bonus is derived.
"Qualified housing"
means residential projects containing units set aside for residents that have been qualified by income and age according to the standards set forth herein, and where the total monthly payments, including rents (not including personal services such as meals, etc.) and mortgage payments (principal, interest, taxes, insurance, assessment district fees, and homeowner association fees) at any time during the life of the lease, rental agreement or loan, will not exceed the amounts for each type of housing and income level as follows:
1. 
BMR (Below Market Rate) Units. Units provided at prices and rents below the market for such units, according to the number of persons per family established by HUD, consistent with the following categories:
a. 
Low-Income Housing. Housing within projects of five or more units, wherein twenty percent of the units are affordable to persons earning not more than sixty percent of the Stanislaus County median income, as defined in Section 50079.5 of the Health and Safety Code; with rents or monthly payments of not more than thirty percent of sixty percent of the Stanislaus County median income;
b. 
Very Low-Income Housing. Housing within projects of five or more units, wherein ten percent of the units are affordable to persons earning not more than fifty percent of the Stanislaus County median income, as defined in Section 50105 of the Health and Safety Code; with rents not more than thirty percent of fifty percent of the Stanislaus County median income.
2. 
Senior Housing. Housing within projects of five or more units, wherein at least fifty percent of the units are occupied by at least one person fifty-five years of age or older.
(Ord. 2011-02 §1)
A. 
A density bonus and an additional incentive, or financially equivalent incentive, shall be granted to any development that includes at least:
1. 
Twenty percent of the units for lower income households; or
2. 
Ten percent of the units for very low-income households; or
3. 
Fifty percent of the units for senior citizens.
B. 
The provisions of this chapter shall apply only to "qualified housing projects" as defined herein and located within the density bonus overlay district.
(Ord. 2011-02 §1)
A. 
Application Requirements. Applications for density bonus shall be submitted to the planning director on the required form, together with the information required thereon. At least the following additional information shall be required:
1. 
Project feasibility analysis containing the following information:
a. 
An analysis of that portion of the project which is made feasible with the twenty-five percent density bonus and that portion of the project made feasible through the availability of any specified additional incentive.
b. 
A list of alternatives ranked according to effectiveness in enhancing the feasibility of the project. The rationale for ranking alternatives shall be indicated in the study.
c. 
The study shall reference data sufficient to allow evaluation required herein, to the satisfaction of the planning director, including, but not limited to, the cost of land, construction, site development, financing, anticipated sale price or rent for the project or units, and an analysis of prices and rents for comparable projects.
d. 
Written verification of the conclusions and recommendations of the study shall be obtained by the planning director at the expense of the applicant.
e. 
Proposals involving modification of zoning or development standards, e.g., open space, minimum lot size, setbacks, parking standards or direct financial assistance, shall be subject to independent verification of the relative value of such incentives in rendering the project feasible. Such verification shall be obtained by the planning department at the expense of the applicant.
2. 
Complete preliminary plans for development of the site including site plan, floor plan, landscape plan and elevations.
3. 
A narrative explaining the purpose of the application, development standards utilized to prepare plans and any request for modification of the requirements of the chapter made necessary by the proposal.
4. 
A proposed agreement, as specified herein.
5. 
Other information deemed necessary by the planning director.
B. 
Review Period. Within ninety days of submittal of any request for preliminary review or application for any qualified project, the planning director shall complete review and forward a report to the planning commission for review regarding the procedures and standards for review of the request relative to these requirements.
C. 
Development Agreements. Any project for which a density bonus has been approved shall enter into an agreement with the city. The agreement shall be referenced on the deed of any property destination or origination property during the term established herein, and shall include the following information:
1. 
The location (address, lot and block number, and assessor parcel number) of BMR units and the location of density bonus units.
2. 
The number of BMR units by bedroom and targeted income group.
3. 
Eligibility for residence, according to maximum income and age, as appropriate and a process for certifying occupancy according to these standards.
4. 
Standards for rents and sales prices for BMR units, as follows:
a. 
Table 34-1 shall be used in setting maximum rents and sale price by household size.
b. 
Total move-in costs for affordable units shall be limited to one month's rent, plus a cleaning deposit not to exceed one month's rent.
Table 34-1
Unit Size (Bedrooms)
Maximum Household Size
Studio
1
1
2
2
3
3
4
4
6
c. 
Services provided occupants of senior housing such as referenced in Section 17.34.050(A) shall not be included in calculating maximum rents.
d. 
Total monthly payments used to categorize for-sale BMR units shall include principal, interest, taxes, insurance, assessment district fees, homeowner association fees, if applicable.
e. 
Down payment for for-sale units shall not exceed ten percent of the purchase price.
5. 
The minimum term for BMR units shall not be less than thirty years commencing on the day of title transfer for for-sale units and upon occupancy for rental units. The minimum term for projects granted no additional incentive shall be ten years.
6. 
The density bonus given and the nature of any additional incentive granted the developer of the project.
7. 
Reference to an executed separate agreement with the Stanislaus County housing authority for monitoring occupancy of qualified rental and for-sale housing units.
8. 
Provisions requiring the review of the sale and resale of property subject to the terms required herein for all designated low- and very low-income units. Such provisions for transfer of designated low- and very low-income units or of density bonus units shall include, at a minimum:
a. 
Notice to the city of pending sale and disclosure of income eligibility of the proposed purchaser(s);
b. 
If the purchaser is other than an eligible household, offer the city first right of refusal for purchase at the lesser of offered sales price or the property's fair market value;
c. 
If the city does not purchase the property, and the sale is to other than an eligible household, reimburse the city from the proceeds of sale, in an amount equal to the difference in appraised value and the anticipated sale price to an eligible purchaser.
9. 
Other provisions deemed necessary by the city.
D. 
Commission and Council Action—Findings Required. The planning commission shall approve a density bonus and recommend that the city council approve a density bonus and recommend that the city council approves a development agreement and rezoning to the density bonus overlay district based on adoption of the following findings:
1. 
Substantial evidence in the record indicates that the project conforms to the general plan and other applicable policies, standards and regulations of the city.
2. 
Any modification of the standards referenced in this chapter will be necessary to ensure the feasibility of the proposal; therefore, the project will maintain, protect and enhance the public health, safety or general welfare consistent with the purpose set forth herein in accordance with Government Code Section 65915.
3. 
The planning commission shall find, based on substantial evidence in the record, that any specific additional incentive is necessary in order to ensure project feasibility.
4. 
Other required findings pursuant to this title.
(Ord. 2011-02 §1)
Applicants who request a density bonus and agree to construct a residential project of five or more units shall be granted a density bonus, as specified by this subsection. All density bonuses referred to in this section are a specified percentage over the maximum density permitted in the base district.
A. 
A density bonus of twenty percent shall be granted to projects in which the following is included:
1. 
Development is provided to very-low-income households. An additional 2.5 percent density bonus shall be granted for each additional increase of one percent very-low-income units above five percent, to a maximum density bonus of thirty-five percent, as illustrated in Table 34-2, Application of Density Bonus for Very-Low, Low- and Moderate-Income Units; or
2. 
At least ten percent of the total dwelling units of a housing development provided to low-income households. An additional 1.5 percent density bonus shall be granted for each additional increase of 1.5 percent low-income units above ten percent, to a maximum density bonus of thirty-five percent, as illustrated in Table 34-2, Application of Density Bonus for Very-Low, Low- and Moderate-Income Units; or
3. 
Fifty percent of the total dwelling units of a housing development are provided to qualifying residents, defined by Section 51.3 of the Civil Code, as a person sixty-two years of age or older, or fifty-five years of age or older in a senior citizen housing development.
B. 
A density bonus of five percent shall be granted to a condominium project or a planned unit development that provides at least ten percent of the total number of units to households of moderate income. An additional one percent density bonus shall be granted for every one percent of moderate-income units above ten percent, up to a maximum of thirty-five percent, as illustrated in Table 34-2, Application of Density Bonus for Very-Low-, Low- and Moderate-Income Units.
C. 
A density bonus of fifteen percent shall be granted to applicants that donate sufficient land to provide at least ten percent of the units for very-low-income occupants, subject to the requirements of this subsection. Density bonus shall increase by one percent for every additional one percent of very-low-income units above ten percent, up to a maximum of thirty-five percent. All of the following conditions shall apply:
1. 
Donations shall be made to the city of Waterford or a developer previously identified and approved by the city.
2. 
Land must measure a minimum of one acre in size or be able to accommodate forty units per acre.
3. 
Transferred land shall be within the boundary of the proposed development.
4. 
Transferred land shall be appropriately designated by the general plan for high-density residential development prior to final project approval.
5. 
Transferred land shall be zoned for high-density residential use prior to final project approval.
6. 
Transferred land shall be adequately served by infrastructure prior to final project approval.
Table 34-2 Application of Density Bonus for Very Low-, Low- and Moderate-Income Units
Very-Low-Income Units
Low-Income Units
Moderate-Income Units
% Very-Low-Income Units
Permitted % Density Bonus
% Low-Income Units
Permitted % Density Bonus
% Moderate-Income Condo/PUD Units
Permitted % Density Bonus
5
20
10
20
10
5
6
22.5
11
21.5
11
6
7
25
12
23
12
7
8
27.5
13
24.5
13
8
9
30
14
26
14
9
10
32.5
15
27.5
15
10
11
35
16
29
16
11
35% Maximum Density Bonus
17
30.5
17
12
18
32
18
13
19
33.5
19
14
20
35
20
15
35% Maximum Density Bonus
21
16
22
17
23
18
24
19
25
20
26
21
27
22
28
23
29
24
30
25
31
26
32
27
33
28
34
29
35
30
36
31
37
32
38
33
39
34
40
35
35% Maximum Density Bonus
D. 
Construction and Location of Affordable Units. All units that are constructed for very-low-, low- or moderate-income households shall meet the following minimum standards:
1. 
Distribution. Affordable dwelling units shall be reasonably interspersed among market-rate units within the same development.
2. 
Comparable Units. Affordable dwelling units must be generally comparable to market-rate units, including total square footage, bedroom size, closet space, amenities, and number of bathrooms, except in quality of interior "finish" materials (for example, floor and wall coverings). Affordable dwelling units shall measure no less than ninety percent of the average square footage of market-rate units with the same number of bedrooms.
3. 
Comparable Design. Affordable units shall be designed to reasonably reflect the exterior design of market-rate units in the same development.
4. 
Comparable Amenities. Residents of affordable units may not be charged for amenities not charged to other residents, including, but not limited to, access to recreational facilities, parking, cable TV, and interior amenities like dishwashers and microwave ovens. Optional services for all residents must be the same. Tenants of affordable units cannot be required to purchase additional services.
E. 
Affordability. Units constructed for targeted income households shall be made affordable as specified by this section, and as required by subsection I of this section, Affordable Housing Density Bonus Agreement.
1. 
Limits on Housing Costs. Units constructed for targeted-income households shall be made affordable and meet the housing cost limits, as follows:
a. 
Rents for units targeted for very-low-income households shall not exceed thirty percent of fifty percent of the area median income.
b. 
Rents for units targeted for low-income households shall not exceed thirty percent of sixty percent of the area median income.
c. 
The purchase price for units targeted for moderate-income households shall be limited so that monthly housing costs do not exceed thirty percent of one hundred twenty percent of the area median income. A ten percent down payment on the purchase price may be required.
2. 
Continued Affordability. Units constructed for targeted-income households shall be occupied by very-low-, low-, or moderate-income households, consistent with the density bonus approved for the project. In addition, such units shall remain available and affordable, as follows:
a. 
Very Low- and Low-Income Units. Units constructed for very-low-income and low-income households shall remain available and affordable to very-low- and low-income households for at least thirty years or the life of the structure, whichever is greater.
b. 
Moderate-Income Units. Units constructed for moderate-income households shall be owned and occupied by, and affordable to, moderate-income households for ten years or the life of the structure, whichever is greater. Subsequent sale of moderate-income units shall comply with subsection (I)(7) of this section.
F. 
Development Concessions. An applicant may request, and the city shall allow, development concessions for a project that meets the criteria for a density bonus, as described in subsection B of this section (Determination of Bonus) and provided by this section. The following requirements shall apply:
1. 
The city shall approve one or more concessions or incentives for a proposed project if the applicant has provided documented evidence that the waiver or modification is necessary to make the housing units economically feasible, as required by subsections (F)(3) and (F)(4) of this section. The city may deny one or more requested concessions or incentives if, based on substantial evidence, the city makes either of the following findings:
a. 
The concession or incentive is not necessary to ensure affordable housing costs, as defined in Health and Safety Code Section 50052.5, or to ensure rents in the targeted units are set as specified in subsection (E)(1) of this section.
b. 
The concession or incentive would have a specific adverse impact, as defined in Government Code Section 65589.5(d)(2), upon the public health and safety, or physical environment, or any real property that is listed in the California Register of Historical Resources, and there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact without rendering the development unaffordable to low- and moderate-income house-holds.
2. 
The number of city zoning or development standards that shall be waived or modified shall be consistent with the following Table 34-3, Affordable Housing Development Concessions:
Table 34-3 Affordable Housing Development Concessions*
Number of Concessions
Percentage Affordable Housing
Very Low
Low
Moderate Condos and/or PUDs
1
5%
10%
10%
2
10%
20%
20%
3
15%
30%
30%
*
Per SB 435, income categories cannot be combined to achieve a greater number of concessions than that identified in this table.
3. 
The applicant shall provide documented evidence that any such concession is needed to sufficiently reduce the cost of the housing development, while passing on said reduction to future tenants and homeowners. Development concessions cannot be used to increase profit to a housing developer.
4. 
The planning commission shall approve proposed development concessions consistent with this subsection if all of the following findings can be made:
a. 
The applicant has submitted documented financial evidence that shows a waiver or modification of development standards is needed to make the housing units economically feasible;
b. 
A waiver or reduction in development standards will not result in a specific, adverse impact upon the health, safety or physical environment for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact;
c. 
A waiver or reduction in development standards will not result in an adverse impact on any real property that is listed in the California Register of Historical Resources; and
d. 
The planning commission has considered the specific site for which a waiver or modification of development standards is requested and has determined the specified concession is required to allow for the use of a density bonus.
G. 
Parking Standards. If a project qualifies for a density bonus, an applicant may request reduced parking standards for the entire project site. Reduced parking standards may be requested and shall be approved even if a density bonus is not being requested. Reduced parking requirements shall include guest and handicapped parking, may be provided as tandem spaces, and may be uncovered, provided the spaces are located on-site. Reduced parking standards shall be as follows:
1. 
One on-site parking space per unit for units with one bedroom or less.
2. 
One and one-half on-site parking spaces per unit for units with two bedrooms.
3. 
Two on-site parking spaces per unit for units with three or more bedrooms.
H. 
Other Development Standards. The applicant may request waiver of any additional development standards if the applicant provides documented evidence that such waivers are necessary to make the project economically feasible.
I. 
Affordable Housing Density Bonus Agreement. All applicants for projects that receive an affordable housing density bonus, development concession and/or reduction in parking standards, including a project consisting of contiguous properties, shall enter into an affordable housing density bonus agreement with the city of Waterford. All such agreements, prior to execution, are subject to approval by the city attorney. The affordable housing density bonus agreement shall be consistent with all other provisions of this section. Agreements shall also include the following provisions:
1. 
The total number of units that will be constructed and the number of units that will be made affordable to very-low-, low- or moderate-income households shall be clearly stated;
2. 
The affordable units shall remain available to, and occupied and affordable by, very-low- and low-income households for at least thirty years and for moderate-income households at least ten years or the life of the structure, whichever is greater, consistent with subsection E of this section, Affordability;
3. 
The units affordable by very-low-, low- or moderate-income households shall be reasonably interspersed throughout the development and shall be identified on building plans submitted to the community development department and described in the application for a density bonus;
4. 
Resale controls shall be included as a deed restriction consistent with subsection (I)(7) of this section;
5. 
If reduced parking standards have been applied to the project, the number of bedrooms of each unit shall be identified;
6. 
The city or designee shall consider the assets and income of prospective households, pursuant to the state's Housing and Community Development (HCD) standards set forth in the definition of "income eligibility";
7. 
The applicant shall provide documented evidence to the city of Waterford community development department that initial occupants of all very-low- and low-income rental units meet the necessary income qualifications. The property owner shall provide an annual report to the Waterford housing authority certifying tenants of qualifying rental units meet the income and rent limit requirements;
8. 
Every purchaser of moderate-income owner-occupied units shall certify the unit will be the purchaser's primary place of residence, and every renter of low- or very-low-income units shall certify the unit will be occupied by the household renting the unit;
9. 
Initial sales price and fair market value of units at time of initial sale shall be stipulated for all units constructed for moderate-income owner occupants; and
10. 
The applicant shall provide documented evidence to the city planning department that initial owner occupants of moderate-income units meet the necessary income qualifications. Subsequent sale of moderate-income units shall be limited to moderate-income households, as approved by the city planning department. In addition, sale proceeds of moderate-income units sold after the first ten years of occupancy by moderate-income household(s) shall be distributed as follows:
a. 
The initial owner is entitled to receive the value of the down payment, documented improvements to the property and a proportional share of the unit's appreciation, in accordance with the formula in Government Code Section 65915.
b. 
The city shall receive its proportional share of appreciation of the unit in addition to the amount of the original subsidy. The city shall use the proceeds within three years to promote affordable, owner-occupied housing. Use of said proceeds may be accomplished in cooperation with the Stanislaus County Housing Authority and/or other similar organizations dedicated to the provision of affordable housing in Waterford.
J. 
Projects Divided by District Boundaries. If the project involves land divided by district boundaries, including noncontiguous properties, the number of dwelling units permitted in the development shall be the sum of the dwelling units permitted in each of the districts. Within the project, the permitted number of dwelling units may be distributed without regard to the underlying density regulations.
K. 
Transfer of Density Permit Requirements. A noticed public hearing shall be required for any proposal to transfer density rights between contiguous or noncontiguous properties if the resulting density exceeds one hundred twenty-five percent of the number of units normally permitted by the base district. The planning commission may recommend, and the city council may approve, such a transfer of density if the following findings can be made:
1. 
That the project as proposed will materially assist in accomplishing the goal of providing affordable housing opportunities in the city;
2. 
That the project would not lead to over-concentration of persons and families of moderate, low, or very low income; and
3. 
That granting the increased density will not adversely affect the general plan, cause significant adverse effects on the environment, adversely affect solar access to the neighboring property, or violate relevant regulations of this code.
(Ord. 2011-02 §1)
A. 
Types of Incentives. Incentives granted in addition to the density bonus may include any one or a combination of additional density beyond the minimum required bonus, reductions in zoning ordinance requirements or financial assistance.
1. 
Bonus Incentive Criteria. In addition to the standard twenty-five percent bonus, an additional percentage of the maximum number units otherwise permitted under the applicable zoning district regulations and land use elements of the general plan, according to type of qualified housing, as follows:
a. 
An additional bonus of up to fifteen percent for on-site project amenities may be allowed. The planning commission may assign five percentage points to each amenity, not to exceed a total of fifteen percentage points. Typical amenities include, but are not limited to, combined and centralized indoor and outdoor recreation areas, library, dining facilities, laundry services, pools, van/carpool services, libraries and passive and active recreation facilities, medical clinic facilities, etc.
b. 
An additional density bonus of up to fifteen percent for proximity to public services may be allowed. The planning commission may assign three percentage points to each public service located within six hundred feet of the project site. Typical services include, but are not limited to, shopping, public transit, medical facilities, emergency facilities and parks and recreational facilities, which in the opinion of the planning commission are appropriate for use by future residents of the project. Projects with continuously maintained daily transportation and that are within one thousand two hundred feet of services shall qualify for the additional incentive.
c. 
An additional bonus of up to ten percent for development standards which exceed, by ten percent or more, the standards of the district within which the project is located. The planning commission may assign a bonus of five percentage points of each development standard limited to lower building coverage or wider yards resulting in recreation opportunity and visual enhancement of the project.
d. 
An additional density bonus of up to fifteen percent for meritorious design of landscaping and other amenities and areas, that encourage the use and visual enjoyment of common and private open space areas on the project site, may be allowed. The planning commission may determine the amount of bonus by assigning any combination of percentage points for features which reflect the intent of this criterion. Such features may include, but are not limited to, gazebos, water fountains, barbecue and picnic areas, exercise courses and landscaped walkways, interior and open courtyards.
e. 
An additional bonus of one unit for substantial renovation, to current standards of the Uniform Building Code, of any one residential unit identified as substandard by the chief building official pursuant to an official survey of the city. A bonus shall not be awarded for the replacement or rehabilitation of low- and very low-income housing units on-site.
2. 
Modification of Development Standards Criteria. The city may grant, as additional incentive, adjustments in only the following zoning code requirements:
a. 
A reduction in setbacks;
b. 
A reduction in the minimum parking spaces or adjustment to dimensions thereof;
c. 
An increase in the height limit of buildings;
d. 
A reduction in the minimum lot size required.
3. 
Financial Incentive Criteria. The city may grant additional incentives, including, but not limited to:
a. 
Waiver of application fees;
b. 
Waiver of municipal facility and capital improvement fees;
c. 
Direct subsidy via city-authorized programs.
B. 
Limitations on Incentives.
1. 
Limitations for Bonus Incentives.
a. 
Mixed senior, low- and very low-income units in accordance with the percentage requirements for low- and very low-income housing and senior occupancy, not more than sixty percent bonus incentive, at least thirty percent of which must be obtained via amenities contained in subsections (A)(1)(a) and (A)(1)(b) of this section, and the maximum density shall be no greater than fifty dwelling units per acre.
b. 
Senior units, not more than fifty percent bonus incentive, provided that the maximum density shall be no greater than forty dwelling units per net acre.
c. 
Low- and very low-income units, not more than thirty percent bonus incentive. At least ten percent of the incentive bonus must be obtained via amenities listed in subsection (A)(1)(d) of this section, and a maximum density shall be no greater than thirty dwelling units per net acre.
2. 
Limitations on Zoning Incentive.
a. 
Not more than two land use regulations may be modified; in such cases, one of the regulations must be for parking.
b. 
Regulations may be relaxed to the extent approved by the city council.
(Ord. 2011-02 §1)
A. 
Incentives and Density Bonus Units.
1. 
More Than One Incentive. More than one category of incentive may be utilized, subject to limitations, as prescribed.
2. 
Density Bonus Transfer. The density bonus granted herein may be transferred to other projects and areas of the city possessing the same or higher density than of the site upon which the low- and very low-income units are located. Agreements required herein shall refer to such units and sites.
B. 
BMR Housing.
1. 
Unit Size. Except senior housing projects, a majority of BMR units within any project shall contain three or more bedrooms. Remaining units shall be one- and two-bedroom units, and the majority of these shall be two-bedroom units. All BMR units shall be at least eight hundred square feet in area. All BMR units which contain two or more bedroom units shall be at least one thousand square feet in gross floor area. These provisions do not apply to senior housing.
2. 
Timing of Development. Development of qualified housing on destination parcels shall occur at the same relative rate as other units on the originating parcel.
3. 
Existing Low- and Very Low-Income Units. Qualified housing units may be located either on or off the site of originating development, and may consist of relocated units and rehabilitated units documented by the city as substandard.
a. 
Report Required. Applications for development which involve the demolition of any residential building shall be submitted with a report prepared in accordance with the WMC.
b. 
Preservation Required. Units proposed to be demolished which are deemed acceptable for human habitation by the chief building official, or require repairs equaling less than fifty percent of the replacement value of the structure and have provided housing opportunity for persons of low- and very low-income as determined by the planning director, shall either be preserved on subject site, related to another site within the community or replaced with comparable BMR units on a one-for-one basis.
c. 
BMR Replacement. The BMR unit may be replaced on- or off-site and shall not be included in the calculation of allowable density bonus. Rents and prices (low- or very low-income units) for replacement units shall be consistent with the average rents charged during the year preceding project submittal, and shall be independently verified by the planning director.
4. 
Location of Units. BMR units, except as otherwise provided herein, shall be located on the site proposed to be developed and shall be dispersed equally throughout the project according to the manner in which the project has been designed.
(Ord. 2011-02 §1)