This chapter provides for the preservation and maintenance of the city's affordable housing supply, as well as incentives for the development of housing that is affordable to the types of households and qualifying residents identified in Section
17.22.020 (Eligibility for bonus and incentives). In offering these incentives, this chapter is intended to implement the requirements of state law (
Government Code Sections 65302, 65913, and 65915, et seq.) and the goals and policies of the city's housing element.
(Ord. 777 § 1 (Exh. A),
2002; Ord. 905 § 1, 2005)
In order to be eligible for a density bonus and other incentives
as provided by this chapter, a proposed residential development project
shall:
A. Consist
of five or more dwelling units; and
B. Provide
for the construction of one or more of the following within the development:
1. Ten
percent of the total units of a housing development for lower income
households, as defined in
Health and Safety Code Section 50079.5;
or
2. Five
percent of the total units of a housing development for very low income
households, as defined in
Health and Safety Code Section 50105; or
3. A
senior citizen housing development as defined in
Civil Code Sections
51.3 and 51.12; or
4. Ten
percent of the total dwelling units in a condominium project or in
a planned development as defined in
Civil Code Section 4175, respectively,
for persons and families of moderate income, as defined in Health
and Safety Code Section 50093.
(Ord. 777 § 1 (Exh. A),
2002; Ord. 905 § 1, 2005; Ord. 1207, 8/17/2023)
A residential development project that satisfies all relevant
provisions of this chapter shall be entitled to a density bonus and
one or more incentives described below. If the density bonus or incentives
cannot be accommodated on a parcel due to strict compliance with the
provisions of this title, the council shall waive or modify development
standards to accommodate the bonus units or incentives to which the
development would be entitled, unless such waiver or modification
would have a specific adverse impact, as defined in
Government Code
Section 65589.5(d)(2), upon health, safety, or the physical environment,
and for which there is no feasible method to mitigate or avoid the
specific adverse impact.
A. Minimum
Density Bonus. The density bonus granted to a residential development
project shall consist of an 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. Such
increase shall be equal to at least:
1. A twenty percent increase in density, when the development meets the requirements of Section
17.22.020(B)(1),
(2) or
(3); or
2. A five percent increase in density, when the development meets the requirements of Section
17.22.020(B)(4).
3. A
fifteen percent increase in density, when an applicant for a residential
development donates land to the city in accordance with the requirements
of
Government Code Section 65915(h)(1) through (6). 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.
4. The city may, at its discretion, grant a density bonus that is greater than that described in subsections
(1),
(2) and
(3) for a development that meets the requirements therein or proportionately lower than that described in subsections
(1),
(2) and
(3) for a development that does not meet the requirements therein.
B. Additional
Density Bonus.
1.
The amount of density bonus to which the applicant is entitled shall vary according to the amount by which the percentage of affordable housing units exceeds the base percentage established in Section
17.22.020(B). The amount of density bonus for a donation of land shall vary according to the amount by which the donation exceeds the base donation established by
Government Code Section 65915(g).
a.
Lower Income Households. For each one percent increase above
ten percent in the percentage of units affordable to lower income
households, the density bonus shall be increased by one and one half
percent. For each one percent increase above twenty percent in the
percentage of units affordable to lower income households, the density
bonus shall be increased by three and three-quarters percent, subject
to any maximum density set forth in applicable law.
b.
Very Low Income Households. For each one percent increase above
five percent in the percentage of units affordable to very low income
households, the density bonus shall be increased by two and one-half
percent. For each one percent increase above eleven percent in the
percentage of units affordable to very low income households, the
density bonus shall be increased by three and three-quarters percent,
subject to any maximum density set forth in applicable law.
c.
Moderate Income Households. For each one percent increase above
ten percent in the percentage of units affordable to moderate income
households, the density bonus shall increase by one percent. For each
one percent increase above forty percent in the percentage of units
affordable to moderate income households, the density bonus shall
increase by three and three-quarters percent, subject to any maximum
density set forth in applicable law.
d.
Donation of Land. For each one percent increase above the minimum
ten percent land donation, the density bonus shall be increased by
one percent. 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.
2.
The base density bonus shall not be included when determining
the number of housing units that is greater than five percent or ten
percent of the total development. All calculations resulting in fractional
units shall be rounded up to the next whole number. In no event shall
the city be required to grant more than a thirty-five percent increase
over the otherwise maximum allowable residential density under the
applicable zoning ordinance and land use element of the general plan.
C. Incentives,
Number. An eligible project shall receive one, two or three incentives
as follows:
1. Lower
income households. An applicant shall receive:
a. One incentive for a project that includes at least ten percent of
the total units for lower income households;
b. Two incentives for a project that includes at least twenty percent
of the total units for lower income house-holds; and
c. Three incentives for a project that includes at least thirty percent
of the total units for lower income house-holds.
2. Very
low income households. An applicant shall receive:
a. One incentive for a project that includes at least five percent of
the total units for very low income households;
b. Two incentives for a project that includes at least ten percent of
the total units for very low income households; and
c. Three incentives for a project that includes at least fifteen percent
of the total units for very low income house-holds.
3. Moderate
income households. An applicant shall receive:
a. One incentive for a project that includes at least ten percent of
the total units for persons and families of moderate income in a condominium
or planned development;
b. Two incentives for a project that includes at least twenty percent
of the total units for persons and families of moderate income in
a condominium or planned development; and
c. Three incentives for a project that includes at least thirty percent
of the total units for persons and families of moderate income in
a condominium or planned development.
D. Incentives, Description. A project that is eligible to receive incentives pursuant to subsection
(C) above shall be entitled to at least one of the following incentives identified in
Government Code Section 65915(1):
1. A
reduction in the parcel development standards (e.g., coverage, setback,
zero lot line and/or reduced parcel sizes).
2. Approval
of mixed-use zoning in conjunction with the housing project if nonresidential
land uses would reduce the cost of the housing project, and the nonresidential
land uses would be compatible with the housing project and adjoining
development.
3. Other
regulatory incentives or concessions proposed by the developer or
the city that would result in identifiable cost reductions.
4. A
reduction in the number of required parking spaces, upon request by
the applicant. For a one bedroom unit, one parking space is required;
for two and three bedroom units, two parking spaces are required and
for four or more bedroom units, two and one-half parking spaces are
required.
E. Nothing
in this section shall be construed to require the city to provide,
or limit the city's ability to provide, direct financial incentives
for housing development, including the provision of publicly owned
land by the city or the waiver of fees and dedication requirements.
F. Limitations
and Exceptions.
1. In order to receive incentives as described in subsections
(C) and
(D), an applicant must submit a proposal to the city requesting the specific incentives that the applicant desires.
2. The city shall grant the incentives requested by the developer pursuant to subsection (E)(1) and required pursuant to subsection
(C), unless the city makes a written finding, based upon substantial evidence, of either of the following:
a. The incentive is not required in order to provide for affordable
housing costs, as defined in
Health and Safety Code Section 50052.5;
or
b. The incentive would have a specific adverse impact, as defined in
Government Code Section 65589.5(d)(2), upon public health and safety
or the physical environment or on any real property that is listed
in the California Register of Historical Resources and for which there
is no feasible method to satisfactorily mitigate or avoid the specific
adverse impact without rendering the development unaffordable to low
and moderate income households.
3. The
city's granting of an incentive shall not be interpreted, in and of
itself, to require a general plan amendment, zoning change, or other
discretionary approval.
4. Nothing
in this section shall be interpreted to require the city to waive
or reduce development standards or to grant an incentive that would
have a specific, adverse impact upon health, safety or the physical
environment for which there is no feasible method to mitigate or avoid
the specific adverse impact; nor shall this subsection require the
city to waive or reduce development standards or to grant an incentive
that would have an adverse impact on any real property that is listed
in the California Register of Historical Resources.
(Ord. 777 § 1 (Exh. A),
2002; Ord. 905 § 1, 2005; Ord. 1207, 8/17/2023)
A. Before
the issuance of a building permit for any dwelling unit in a development
for which "density bonus units" have been awarded or incentives have
been received, the developer shall identify the restricted units and
shall enter into a written covenant with the city to guarantee one
or both of the following, as applicable:
1. Lower
and very low income households; continued affordability. The continued
affordability and availability of the lower and very low income units
shall be for a minimum of thirty years, as required by state law (Government
Code Sections 65915(c)(1) and 65916). Those units targeted for lower
income households, as defined in
Health and Safety Code Section 50079.5,
shall be affordable at a rent that does not exceed thirty percent
of sixty percent of the area median income. Those units targeted for
very low income households, as defined in
Health and Safety Code Section
50105, shall be affordable at a rent that does not exceed thirty percent
of fifty percent of the area median income.
2. Moderate
income households; equity sharing. The initial occupant of any moderate
income unit in a condominium or planned development shall be a person
or family of moderate income, as required by state law (Government
Code Section 65915(c)(2)). 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 its
proportionate share of appreciation, which shall be equal to the percentage
by which the initial sale price to the moderate income person or family
was less than the fair market value of the home at the time of initial
sale. The city shall spend recaptured funds within three years for
any purposes to promote home ownership, as described in Health and
Safety Code Section 33334.2(e).
B. Recordation of Agreement. The terms and conditions of the covenant shall run with the land which is to be developed, shall be binding upon the successor(s)-in-interest of the developer, and shall be recorded in the county recorder's office. In addition to the requirements described in subsection
(A) above, the agreement shall include the following provisions:
1. The
developer shall give the city a continuing right-of-first-refusal
to purchase or lease any or all of the designated units at the fair
market value;
2. The
deeds to the designated units shall contain a covenant stating that
the developer shall not sell, rent, lease, sublet, assign, or otherwise
transfer any interests for same without the written approval of the
city confirming that the sales or rental price of the units is consistent
with the limits established for lower, very low and moderate-income
households, which shall be related to the Consumer Price Index; and
3. The
city shall have the authority to enter into other agreements with
the developer or purchasers of the dwelling units, as may be necessary
to ensure that the lower and very low income units are continuously
occupied by eligible households.
(Ord. 777 § 1 (Exh. A),
2002; Ord. 905 § 1, 2005)
A. Location/Dispersal
of Units. The location of affordable units within the qualifying project
shall be at the discretion of the city with the goal to integrate
the units into the overall project. However, the inclusionary units
shall be reasonably dispersed throughout the development where feasible,
shall contain on average the same number of bedrooms as the noninclusionary
units, and shall be compatible with the design or use of the remaining
units in terms of appearance, materials, and finish quality.
B. Alternative
Development Site. Circumstances may arise in which the public interest
would be served by allowing some or all of the affordable units associated
with one housing development to be produced and operated at an alternative
development site. Where the owner/developer and the city form an agreement,
the resulting linked developments shall be considered a single housing
development for purposes of this chapter. Under these circumstances,
the owner/developer shall be subject to the same requirements of this
chapter for the affordable units to be provided on the alternative
site.
(Ord. 777 § 1 (Exh. A),
2002)
A. Permit Required. Requests for affordable units shall require approval of a development plan permit in compliance with Chapter
17.42 which shall be reviewed and recommended by the commission, and approved by the council.
B. Initial
Review of Bonus Request. The director shall notify the developer within
ninety days of the filing of the development plan permit application
whether the development project qualifies for the additional density.
C. Criteria to Be Considered. Criteria to be considered in analyzing a requested density bonus shall include whether the applicant has agreed to construct a development that meets the requirements of Section
17.22.020. Criteria to be considered in analyzing a requested incentive shall include whether an incentive has a specific adverse impact upon health, safety or the physical environment, and whether there is no feasible method to eliminate or mitigate such specific adverse impact.
D. Findings for Approval. In addition to the findings required for the approval of a development plan permit in compliance with Chapter
17.42, the approval of a density bonus shall require the following additional findings to be made in a positive manner:
1. The
development project would not be a hazard or nuisance to the city
at large or establish a use or development inconsistent with the goals
and policies of the general plan;
2. The
number of dwellings can be accommodated by existing and planned infrastructure
capacities;
3. Adequate
evidence exists to ensure that the development of the property would
result in the provision of affordable housing in a manner consistent
with the purpose and intent of this chapter;
4. In
the event that the city does not grant at least one financial concession
or incentive as defined in state law (
Government Code Section 65915)
in addition to the density bonus, that additional concessions or incentives
are not necessary to ensure affordable housing costs; and
5. There
are sufficient provisions to guarantee that the lower and very low
income units would remain affordable in the future.
E. Development
Standards. In no case may the city apply any development standard
that would have the effect of precluding the construction of a development
meeting the criteria of 17.22.020(B) at the densities or with the
incentives permitted by this chapter. An applicant may submit to the
city a proposal for the waiver or reduction of development standards.
The applicant must show that the waiver or modification is necessary
to make the affordable housing units economically feasible.
(Ord. 777 § 1 (Exh. A),
2002; Ord. 905 § 1, 2005)
An applicant may initiate judicial proceedings if the city refuses
to grant a requested density bonus, incentive, or modification or
waiver of a development standard. If a court finds that the refusal
to grant a requested density bonus, incentive, or modification or
waiver of a development standard is in violation of this chapter or
Government Code Section 65915, the court shall award the plaintiff
reasonable attorney's fees and costs of suit.
(Ord. 905 § 1, 2005)
All uses shall be subject to the applicable provisions of this
title, including the procedures identified in the following:
17.48 Conditional Use Permits
17.42 Development Plan Permits
17.24 Landscaping Standards
17.50 Minor Variances
17.26 Parking and Loading Standards
17.28 Signs
17.46 Temporary Use Permits
17.52 Variances
(Ord. 777 § 1 (Exh. A),
2002; Ord. 905 § 1, 2005)