The purpose of this chapter is to provide incentives for the production of housing for very low-income, lower-income, moderate-income, special needs, and senior households in the city and to establish procedures for carrying out the legislative requirements and complying with Government Code § 65915 et seq. In enacting this chapter, it is the intent of the city to facilitate the development of affordable housing by positively impacting the economic feasibility of providing lower-income housing and implementing the goals, objectives, and policies of the city's housing element.
(Ord. No. 1000 § 4, 2022)
A. 
The city shall grant one density bonus, with concessions or incentives, as specified in section 17.46.040 (Density Bonuses and Incentives and Concessions Allowed), when the applicant for the residential development seeks and agrees to construct a residential development, excluding any units permitted by the density bonus awarded pursuant to this chapter, that will contain at least one of the following:
1. 
Ten percent of the total units of a housing development for rental or sale to lower-income households, as defined in Health and Safety Code § 50079.5.
2. 
Five percent of the total units of a housing development for rental or sale to very low-income households, as defined in Health and Safety Code § 50105.
3. 
A senior citizen housing development, as defined in §§ 51.3 and 51.12 of the Civil Code, or a mobilehome park that limits residency based on age requirements for housing for older persons pursuant to § 798.76 or 799.5 of the Civil Code.
4. 
Ten percent of the total dwelling units of a housing development are sold to persons and families of moderate income, as defined in Health and Safety Code § 50093, provided that all units in the development are offered to the public for purchase.
5. 
Ten percent of the total units of a housing development for transitional foster youth, as defined in § 66025.9 of the Education Code, disabled veterans, as defined in Government Code § 18451, or homeless persons, as defined in the federal McKinney-Vento Homeless Assistance Act (42 U.S.C. § 11301 et seq.). The units described in this subsection shall be subject to a recorded affordability. restriction of 55 years and shall be provided at the same affordability level as very low-income units.
6. 
Twenty percent of the total units for lower income students in a student housing development that meets the requirements of Government Code § 65915(b)(1)(F).
7. 
One hundred percent of all units in the development, including total units and density bonus units, but exclusive of a manager's unit or units, are for lower-income households, as defined by Health and Safety Code § 50079.5, except that up to 20 percent of the units in the development, including total units and density bonus units, may be for moderate-income households, as defined in Health and Safety Code § 50053.
B. 
The above units qualifying a development for a density bonus shall be referred to as "target units." The applicant shall specify which of the above paragraphs is the basis for the density bonus.
(Ord. No. 1000 § 4, 2022)
The following general requirements apply to the application and determination of all incentives and bonuses:
A. 
Rounding. All density calculations resulting in fractional units shall be rounded up to the next whole number.
B. 
Relation to general plan, zoning. The granting of a density bonus, or a concession or incentive, shall not be interpreted, in and of itself, to require a general plan amendment, zoning change, or other discretionary approval.
C. 
Density bonus excluded in calculation. The density bonus shall not be included when calculating the total number of housing units that qualifies the housing development for a density bonus.
D. 
Parking. Upon request by the applicant, the city shall not require that a housing development meeting the requirements of section 17.46.020 (Eligibility) provide a vehicular parking ratio, inclusive of handicapped and guest parking, that exceeds the following or any parking requirements set forth in Government Code § 65915:
1. 
Zero (studio) to one bedroom: One on-site parking space per unit.
2. 
Two to three bedrooms: One and one-half on-site parking spaces per unit.
3. 
Four or more bedrooms: Two and one-half parking spaces per unit.
4. 
If the total of parking spaces required for a housing development is other than a whole number, the number shall be rounded up to the next whole number. For purposes of this subsection, a development may provide on-site parking through tandem parking or uncovered parking, but not through on-street parking.
E. 
Waived or reduced development standards. The city shall not apply any development standard that would have the effect of physically precluding the construction of a housing development meeting the requirements of section 17.46.020 (Eligibility) at the densities or with the incentives or concessions permitted by this chapter, or as otherwise set forth in Government Code § 65915.
1. 
An applicant may submit to the city a proposal for the waiver or reduction of development standards, when standards would have the effect of physically precluding the proposed development, and may request a meeting with the city. Nothing in this subsection, however, shall be interpreted to require the city to waive or reduce development standards if:
a. 
The waiver or reduction would have a specific adverse impact, as defined in paragraph (2) of subdivision (d) of Government Code § 65589.5 upon health and safety and for which the city determines there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact.
b. 
This would have an adverse impact on any real property that is listed in the state register of historical resources and for which the city determines there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact.
c. 
The waiver or reduction would be contrary to state or federal law.
2. 
A proposed waiver or reduction of development standards shall neither reduce nor increase the number of allowable incentives or concessions under section 17.46.040 (Density Bonuses and Incentives and Concessions Allowed).
F. 
Multiple zones. If the site of a development proposal is located in two or more zones, the number of dwelling units permitted in the development is the sum of the dwelling units permitted in each of the zones based on the site acreage within each zone. The permitted number of dwelling units may be distributed within the development without regard to the zone boundaries.
G. 
Affordable housing requirements. Required affordable housing units may be counted toward the affordable units required to qualify for a density bonus per section 17.46.020 (Eligibility).
H. 
Land donation. Nothing in this chapter shall be construed to enlarge or diminish the authority of the city to require a developer to donate land as a condition of development.
I. 
Agreement required.
1. 
Prior to the issuance of building permits, the applicant shall enter into an agreement with the city to ensure the continued affordability of all target units.
2. 
For all target units, the agreement shall specify the household income classification, number, location, size, and construction scheduling and shall require target units in a project and phases of a project to be constructed concurrently with the construction of non-target units. The agreement shall include such other provisions as necessary to establish compliance with the requirements of this chapter.
J. 
Reports. The applicant shall submit financial or other reports along with the application for the project to establish compliance with this chapter. The city may retain a consultant to review any financial report (pro forma). The cost of the consultant shall be borne by the applicant; except if the applicant is a nonprofit organization, the cost of the consultant may be paid by the city upon prior approval of the city council.
K. 
Consistency with state law. The provisions of this chapter shall be interpreted to fulfill the requirements of Government Code § 65915. Government Code § 65915 is hereby incorporated by reference. Any changes to Government Code § 65915 shall be deemed to supersede and govern any conflicting provisions contained herein.
(Ord. No. 1000 § 4, 2022; Ord. No. 1026, 5/15/2024)
A. 
Density bonus. Except as otherwise set forth in Government Code § 65915 a housing development that satisfies the eligibility requirements in section 17.46.020 (Eligibility) of this chapter shall be entitled to the following density bonus:
1. 
For housing developments providing ten percent lower-income target units, the density bonus shall be calculated as follows:
Percentage Low-Income Units
Percentage Density Bonus
10
20
11
21.5
12
23
13
24.5
14
26
15
27.5
16
29
17
30.5
18
32
19
33.5
20
35
21
38.75
22
42.5
23
46.25
24
50
2. 
For housing developments providing five percent very low-income target units, the density bonus shall be calculated as follows:
Percentage Very Low-Income Units
Percentage Density Bonus
5
20
6
22.5
7
25
8
27.5
9
30
10
32.5
11
35
12
38.75
13
42.5
14
46.25
15
50
3. 
For senior citizen housing developments, the density bonus shall be 20 percent of the number of senior units.
4. 
For housing developments providing ten percent of the total units of a housing development for transitional foster youth, disabled veterans, or homeless persons, the density bonus shall be 20 percent of the number of target units.
5. 
For housing developments providing 20 percent of the total units for lower income students in a student housing development, the density bonus shall be 35 percent of the student housing units.
6. 
For housing developments providing 100 percent of all units in the development for lower income households and meeting the criteria of section 17.46.020(A)(7), the density bonus shall be 80 percent of the number of units for lower income households.
a. 
If a 100 percent affordable housing development is located within one-half mile of a major transit stop, the city shall not impose any maximum controls on density.
7. 
For housing developments where ten percent of the housing development are sold to persons and families of moderate income, the density bonus shall be calculated as follows:
Percentage Moderate-Income Units
Percentage Density Bonus
10
5
11
6
12
7
13
8
14
9
15
10
16
11
17
12
18
13
19
14
20
15
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
41
38.75
42
42.5
43
46.25
44
50
B. 
Number of incentives or concessions. In addition to the density bonus described in this section, an applicant may request specific incentives or concessions. Except as otherwise set forth in Government Code § 65915, 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 housing development in which the units are for sale.
2. 
Two incentives or concessions for projects that include at least 17 percent of the total units for lower-income households, at least ten percent for very low-income households, or at least 20 percent for persons and families of moderate income in a housing development in which the units are for sale.
3. 
Three incentives or concessions for projects that include at least 24 percent of the total units for lower-income households, at least 15 percent for very low-income households, or at least 30 percent for persons and families of moderate income in a housing development in which the units are for sale.
4. 
Four incentives or concessions for projects that are 100 percent affordable, meeting the criteria of section 17.46.020(A)(7). If the project is located within one-half mile of a major transit stop, the applicant shall also receive a height increase of up to three additional stories, or 33 feet.
5. 
One incentive or concession for projects that include at least 20 percent of the total units for lower income students in a student housing development.
C. 
Available incentives and concessions.
1. 
A reduction in the site development standards or a modification of this title's requirements or architectural design requirements that exceed the minimum building standards approved by the state building standards commission as provided in part 2.5 (commencing with § 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 vehicle parking spaces that would otherwise be required and that results in identifiable, financially sufficient, and actual cost reductions to provide for affordable housing costs or rents.
2. 
Approval of form-based zone in conjunction with the housing development if the nonresidential land uses will reduce the cost of the housing development and the nonresidential land uses are compatible with the housing development and existing or planned development in the area in which the housing development will be located.
3. 
Other regulatory incentives or concessions proposed by the applicant or the city that result in identifiable, and actual cost reductions.
4. 
Priority processing of a housing development that qualifies for a density bonus based on income-restricted units.
D. 
Additional density bonus and incentives and concessions for donation of land to the city.
1. 
When an applicant for a tentative subdivision map, parcel map, or other residential development approval donates land to the city and agrees to include a minimum of ten percent of the total units for very low-income households, the density bonus shall be calculated as follows:
Percentage Very Low Income
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
2. 
The density bonus provided in this subsection shall be in addition to any other density bonus provided by this chapter up to a maximum combined density bonus of 35 percent.
3. 
The applicant shall be eligible for the increased density bonus described in this subsection if all of the following conditions are met:
a. 
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.
b. 
The developable acreage and zoning designation 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.
c. 
The transferred land is at least one acre in size or of sufficient size to permit development of at least 40 units, has the appropriate general plan designation, is appropriately zoned with appropriate development standards for development at the density described in paragraph (3) of subdivision (c) of Government Code § 65583.2, and is or will be served by adequate public facilities and infrastructure.
d. 
The transferred land shall have all of the entitlements and approvals, other than building permits, necessary for the development of the very low-income housing units on the transferred land, not later than the date of approval of the final subdivision map, parcel map, or residential development application, except that the city may subject the proposed development to subsequent design review to the extent authorized by subdivision (i) of Government Code § 65583.2 if the design is not reviewed by the city prior to the time of transfer.
e. 
The transferred land and the affordable units shall be subject to a deed restriction ensuring continued affordability of the units consistent with the requirements of this chapter or Government Code § 65915(c)(1) and (2), which shall be recorded on the property at the time of the transfer.
f. 
The land is transferred to the city or to a housing developer approved by the city. The city may require the applicant to identify and transfer the land to the developer.
g. 
The transferred land shall be within the boundary of the proposed development or, if the city agrees, within one-quarter mile of the boundary of the proposed development.
h. 
A proposed source of funding for the very low-income units shall be identified not later than the date of approval of the final subdivision map, parcel map, or residential development application.
4. 
Nothing in this subsection shall be construed to enlarge or diminish the authority of the city to require a developer to donate land as a condition of development.
E. 
Additional density bonus or incentives and concessions for development of child-care facility.
1. 
Housing developments meeting the requirements of section 17.46.020 (Eligibility) and including a child-care facility that will be located on the premises of, as part of, or adjacent to the housing development shall receive either of the following:
a. 
An additional density bonus that is an amount of square footage of residential space that is equal to or greater than the amount of square footage in the child-care facility.
b. 
An additional incentive or concession that contributes significantly to the economic feasibility of the construction of the child-care facility.
2. 
The city shall require the following as conditions of approving the housing development:
a. 
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 target units are required to remain affordable, pursuant to subdivision (c) of Government Code § 65915.
b. 
Of the children who attend the child-care facility, the children of very low-income households, lower-income households, or persons or families of moderate income shall equal a percentage that is equal to or greater than the percentage of target units that are required pursuant to section 17.46.020 (Eligibility).
3. 
Notwithstanding any other requirements of this section, the city shall not be required to provide a density bonus or concession for a child-care facility if it makes a written finding, based upon substantial evidence, that the community has adequate child-care facilities.
F. 
Condominium conversion incentives for low-income housing development.
1. 
An applicant for approval to convert apartments to a condominium project may submit to the city a preliminary proposal pursuant to this subsection prior to the submittal of any formal requests for subdivision map approvals. The city shall, within 90 days of receipt of a written proposal, notify the applicant in writing of the manner in which it will comply with this subsection.
2. 
When an applicant for approval to convert apartments to a condominium project agrees to the following, the city shall grant either a density bonus of 25 percent over the number of apartments, to be provided within the existing structure or structures proposed for conversion, or provide other incentives of equivalent financial value.
a. 
Provide at least 33 percent of the total units of the proposed condominium project to persons and families of low or moderate income, or provide at least 15 percent of the total units of the proposed condominium project to lower-income households; and
b. 
Agree to pay for the reasonably necessary administrative costs incurred by the city.
3. 
For purposes of this subsection, "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.
4. 
Nothing in this subsection shall be construed to require the city to approve a proposal to convert apartments to condominiums.
5. 
An applicant shall be ineligible for a density bonus or other incentives under this subsection if the apartments proposed for conversion constitute a housing development for which a density bonus or other incentive was previously provided.
(Ord. No. 1000 § 4, 2022)
The location of density bonus units within the housing development may be at the discretion of the developer. However, the target units shall be dispersed throughout the housing development and when feasible shall contain, on average, the same number of bedrooms as the non-target units in the development, and shall be compatible with the design or use of the remaining units in terms of appearance, materials, and quality finish.
(Ord. No. 1000 § 4, 2022)
A. 
If a housing development provides lower-or very low-income target units to qualify for a density bonus, the continued affordability of all lower-or very low-income units shall be maintained for 55 years or a longer period of time if required by the construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy program. Except as set forth in subsection B, the rents for the lower income density bonus units shall be set at an affordable rent as defined in Health and Safety Code § 50053.
B. 
For 100 percent affordable housing developments meeting the criteria of section 17.46.020(A)(7), rents for all units in the development, including both base density and density bonus units, shall be as follows:
1. 
The rent for at least 20 percent of the units in the development shall be set at an affordable rent, as defined in Health and Safety Code § 50053.
2. 
The rent for the remaining units in the development shall be set at an amount consistent with the maximum rent levels for a housing development that receives an allocation of state or federal low-income housing tax credits from the California Tax Credit Allocation Committee.
C. 
The for-sale units that qualified the applicant for the density bonus shall meet either of the following:
1. 
The initial occupant of all for-sale units that qualified the applicant for the award of the density bonus are persons and families of very low-, low-, or moderate-income and that the units are offered at an affordable housing cost, as defined in Health and Safety Code § 50052.5. The city shall enforce an equity sharing agreement, unless it is in conflict with the requirements of another public funding source or law.
2. 
The unit is purchased by a a qualified nonprofit housing corporation pursuant to a recorded contract that meets the requirements set forth in Government Code § 65915(C)(2)(ii).
3. 
The following apply to the equity sharing agreement:
4. 
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 amount shall be used within five years for any of the purposes described in subdivision (e) of Health and Safety Code § 33334.2 that promote home ownership.
5. 
For the purposes of this subsection, 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 house-hold, 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.
6. 
For the purposes of this subsection, the city's proportionate share of appreciation shall be equal to the ratio of the city'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 § 65915, the city shall assure continued availability for low-and moderate-income units for 30 years.
(Ord. No. 1000 § 4, 2022)
A. 
Process for Approval. The density bonus and incentive(s) and concession(s) request shall be considered in conjunction with any necessary development entitlements for the project. The designated approving authority for density bonuses, incentives, and concessions shall be the planning commission. In approving the density bonus and any related incentives or concessions, the city and the applicant shall enter into a density bonus agreement.
B. 
Approval of Density Bonus Required. The city shall grant the density bonus requested by the applicant provided it is consistent with the requirements of this chapter and state law.
C. 
Approval of Incentives or Concessions Required Unless Findings Made. The city shall grant the incentive(s) and concession(s) requested by the applicant unless the city makes a written finding, based upon substantial evidence, of any of the following:
1. 
The incentive or concession is not required in order to provide for affordable housing costs as defined in Health and Safety Code § 5052.5 or affordable rent for the target units.
2. 
The incentive or concession would have a specific adverse impact, as defined in paragraph (2) of subdivision (d) of Government Code § 65589.5, upon public health and safety that is listed in the state register of historical resources and for which the city determines 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.
3. 
The concession or incentive would be contrary to state or federal law.
(Ord. No. 1000 § 4, 2022; Ord. No. 1026, 5/15/2024)
The city shall charge applicants an administrative fee to cover the city's cost to review all materials submitted in accordance with this chapter and for ongoing enforcement of this chapter. The amount of the administrative fee shall be established by city council resolution and updated as required. Fees will be charged for staff time and materials associated with:
A. 
Review and approval of applications for the proposed development.
B. 
Project marketing and lease-up.
C. 
Long-term compliance of the applicant and successors-in-interest to the applicant, with respect to the affordable housing units.
(Ord. No. 1000 § 4, 2022)