As required by Government Code Section 65915, this chapter offers incentives for the development of housing that is affordable to the types of households and qualifying residents identified in Section 13.32.020. This chapter is intended to implement the requirements of Government Code Sections 65302, 65913, and 65915, et seq., and the housing element of the general plan.
(Ord. 205 § 1 (Exh. A), 2003; Ord. 299, 11/12/2024)
In order to be eligible for a density bonus and other incentives as provided by this chapter, a proposed housing development shall comply with the following requirements, and satisfy all other applicable provisions of this title, except as provided by Section 13.32.030.
A. 
Resident Requirements. The housing development be designed and constructed so that:
1. 
At least twenty percent of the total number of proposed units are for lower income households, as defined in Health and Safety Code Section 50079.5; or
2. 
At least ten percent of the total number of proposed units are for very low income households, as defined in Health and Safety Code Section 50105; or
3. 
At least fifty percent of the total number of proposed units are for qualifying residents (senior citizens) as defined by Civil Code Section 51.2; or
4. 
At least twenty percent of the total dwelling units in a condominium project as defined in Civil Code Section 1351(f), for persons and families of moderate income, as defined in Health and Safety Code Section 50093; or
5. 
The project is defined as an "affordable housing" or "senior housing" project eligible for density bonus in compliance with California Government Code Section 65915.
A density bonus granted in compliance with Section 13.32.030 shall not be included when determining the number of housing units that is equal to the percentages required above.
B. 
Minimum Project Size to Qualify for Density Bonus. The density bonus provided by this chapter shall be available only to a housing development of five or more units.
C. 
Condominium Conversion Projects. A condominium conversion project shall comply with the eligibility and other requirements in Government Code Section 65915.5.
(Ord. 205 § 1 (Exh. A), 2003; Ord. 299, 11/12/2024)
The amount of a density bonus, and the extent of other incentives allowed a housing development shall be determined by the council in compliance with this section.
A. 
Extent of Bonus and Incentives Allowed. A housing development that satisfies all applicable provisions of this chapter shall be entitled to a density bonus as identified in subsection B, and at least one of the other incentives identified in subsection C, except:
1. 
As provided by Government Code Section 65915.5 for a condominium conversion project; and
2. 
That if an applicant agrees to construct both twenty percent of the total units for lower income households and ten percent of the total units for very low income households, the developer is entitled to a density bonus and at least one additional incentive identified in this section.
If a density bonus and/or other incentives cannot be accommodated on a site due to strict compliance with the provisions of this title, the council may waive or modify other development standards as necessary to accommodate all bonus units and other incentives to which the development is entitled.
B. 
Density Bonus. The calculation of a density bonus in compliance with this subsection that results in fractional units shall be rounded up to the next whole number, as required by state law. For the purposes of calculating a bonus, the residential units do not have to be based upon individual subdivision maps or parcels.
1. 
General Bonus. A density bonus for a housing development that complies with the eligibility requirements in Sections 13.32.020(A)(1), (A)(2), or (A)(3) shall consist of at least a twenty-five percent increase in the number of dwelling units normally allowed by the applicable general plan designation and zoning district, unless a lesser percentage is elected by the applicant.
2. 
Bonus for Condominium Project. A density bonus for a condominium project that complies with the eligibility requirements in Section 13.32.020(A)(4) shall consist of at least a ten percent increase in the number of dwelling units normally allowed by the applicable general plan designation and zoning district, unless a lesser percentage is elected by the applicant.
C. 
Other Incentives. A qualifying project shall be entitled to at least one of the following concessions or incentives identified by Government Code Section 65915(b), in addition to the density bonus allowed by subsection B:
1. 
A reduction in the site development standards of this title (e.g., site coverage limitations, setbacks, reduced parcel sizes, and/or parking requirements), or architectural design requirements that exceed the minimum building standards approved by the California Building Standards Commission in compliance with Health and Safety Code Section 18901 et seq.;
2. 
Approval of mixed-use zoning not otherwise allowed by this title in conjunction with the housing development, if nonresidential land uses will reduce the cost of the housing development, and the nonresidential land uses are compatible with the housing development and the existing or planned development in the area where the project will be located; and/or
3. 
Other regulatory incentives or concessions proposed by the developer or the town that will result in identifiable cost reductions.
The council shall approve one or more of the above incentives, notwithstanding the other provisions of this chapter, unless it makes a written finding, based on substantial evidence, that the additional concession or incentive is not required in order to provide for affordable housing costs as defined in Health and Safety Code Section 50052.5, or for rents for the targeted units to be set in compliance with Government Code Section 65915(c).
D. 
Applicant Requested Incentives. An applicant may submit to the town a request for specific incentives or concessions in compliance with this section, and may request a meeting with the director. The council shall grant the concession or incentive requested by the applicant unless the council makes a written finding, based upon substantial evidence, of either 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 Section 13.32.040(B); or
2. 
The concession or 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 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.
(Ord. 205 § 1 (Exh. A), 2003; Ord. 299, 11/12/2024)
The planning permit application for the affordable housing development shall include procedures proposed by the developer to maintain the continued affordability of the units that qualified the housing development for a density bonus and other incentives, in compliance with this section.
A. 
Duration of Affordability. The applicant shall agree to, and the town shall ensure the continued availability of the units that qualified the housing development for a density bonus and other incentives, as follows.
1. 
Lower Income Units. The continued availability of lower income units shall be maintained for thirty years, or a longer time if required by the construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy program.
2. 
Low and Moderate Income Units - Development with Public Funding. A housing development that receives a direct financial contribution as an additional incentive in compliance with Section 13.32.030 through participation in the cost of infrastructure, write-down of land costs, or subsidizing the cost of construction, shall maintain the availability of low- and moderate-income units for a minimum of thirty years, as required by Government Code Section 65916.
3. 
Moderate Income Units in Condominium. The continued availability of moderate income units in a condominium project shall be maintained for a minimum of ten years.
B. 
Rent Cost Requirements. The rents charged for the housing units in the development that qualify the project for a density bonus and other incentives, shall not exceed the following amounts during the period of continued availability required by this section:
1. 
Thirty percent of sixty percent of the area median income, for units targeted for lower income households, as defined in Health and Safety Code Section 50079.5; and
2. 
Thirty percent of fifty percent of the area median income, for units targeted for very low income households, as defined in Health and Safety Code Section 50105.
(Ord. 205 § 1 (Exh. A), 2003; Ord. 299, 11/12/2024)
A. 
Location/Dispersal of Units. As required by Government Code Section 65915(g), the location of the designated units within the qualifying housing development may be at the discretion of the developer. However, the designated units shall be reasonably dispersed throughout the project where feasible, shall contain on average the same number of bedrooms as the non-designated units in the project, and shall be compatible with the design or use of remaining units in terms of appearance, materials, and finished quality.
B. 
Phasing. If a project is to be phased, the density bonus units shall be phased in the same proportion as the non-density bonus units, or phased in another sequence acceptable to the town.
(Ord. 205 § 1 (Exh. A), 2003; Ord. 299, 11/12/2024)
A. 
Permit Requirement. A request for a density bonus and other incentives shall be evaluated and decided through use permit approval in compliance with Section 13.62.050, provided that the decision of the commission on a use permit application shall be a recommendation to the council, and the density bonus and other incentives shall be approved by the council.
B. 
Findings for Approval. In addition to the findings required by Section 13.62.050 for the approval of a use permit, the approval of a density bonus shall require that the review authority first make all of the following additional findings:
1. 
The residential development will be consistent with the general plan;
2. 
The approved number of dwellings can be accommodated by existing and planned infrastructure capacities;
3. 
Adequate evidence exists to indicate that the project will provide affordable housing in a manner consistent with the purpose and intent of this chapter;
4. 
In the event that the town does not grant at least one financial concession or incentive as defined in Government Code Section 65915 in addition to the density bonus, that additional concessions or incentives are not necessary to ensure affordable housing costs as defined in Health and Safety Code Section 50052.5, or for rents for the targeted units to be set as specified in Government Code Section 65915(c); and
5. 
There are sufficient provisions to guarantee that the units will remain affordable for the required time period.
(Ord. 205 § 1 (Exh. A), 2003; Ord. 299, 11/12/2024)
A. 
Procedures. An applicant requesting a density bonus, shall draft, and agree to enter into, a density bonus agreement ("agreement") with the town. The terms of the draft agreement shall be reviewed and revised as appropriate by the town manager, and/or the town attorney.
B. 
Execution of Agreement.
1. 
Following execution of the density bonus agreement by all parties, the town shall record the completed agreement on the parcels designated for the construction of designated dwelling units, at the county recorder's office.
2. 
The approval and recordation shall take place at the same time as the final map or, where a map is not being processed, before issuance of building permits for the units.
3. 
The agreement shall be binding to all future owners, developers, and/or successors-in-interest.
C. 
Agreement Contents. The density bonus agreement shall include at least the following information:
1. 
The total number of units approved for the housing development, including the number of designated dwelling units;
2. 
A description of the household income group to be accommodated by the housing development, and the standards and methodology for determining the corresponding affordable rent or affordable sales price and housing cost consistent with HUD Guidelines;
3. 
The marketing plan for the affordable units;
4. 
The location, unit sizes (square feet), and number of bedrooms of the designated dwelling units;
5. 
Tenure of the use restrictions for designated dwelling units of the time periods required by Section 13.32.040;
6. 
A schedule for completion and occupancy of the designated dwelling units;
7. 
A description of the additional incentive(s) being provided by the town;
8. 
A description of the remedies for breach of the density bonus agreement by the owners, developers, and/or successor(s)-in-interest of the project; and
9. 
Other provisions to ensure successful implementation and compliance with this chapter.
D. 
Agreement Provisions. The density bonus agreement shall include at least the following provisions:
1. 
The developer shall give the town the continuing right-of-first-refusal to lease or purchase any or all of the designated dwelling units at the appraised value;
2. 
The deeds to the designated dwelling units shall contain a covenant stating that the developer or successors-in-interest shall not assign, lease, rent, sell, sublet, or otherwise transfer any interests for designated units without the written approval of the town;
3. 
When providing the written approval, the town shall confirm that the price (rent or sale) of the designated dwelling unit is consistent with the limits established for low- and very low-income households, as published by HUD;
4. 
The town shall have the authority to enter into other agreements with the developer, or purchasers of the designated dwelling units, to ensure that the required dwelling units are continuously occupied by eligible households;
5. 
Applicable deed restrictions, in a form satisfactory to the town attorney, shall contain provisions for the enforcement of owner or developer compliance. Any default or failure to comply may result in foreclosure, specific performance, or withdrawal of the certificate of occupancy.
6. 
In any action taken to enforce compliance with deed restrictions, the town attorney shall, if compliance is ordered by a court of competent jurisdiction, take all action that may be allowed by law to recover all of the town's costs of action including legal services.
E. 
For-Sale Housing Conditions. In the case of for-sale housing developments, the density bonus agreement shall provide for the following conditions governing the initial sale and use of designated dwelling units during the applicable use restriction period:
1. 
Designated dwelling units shall be owner-occupied by eligible very low or low income households, or by qualified residents in the case of senior housing; and
2. 
The initial purchaser of each designated dwelling unit shall execute an instrument or agreement approved by the town which:
a. 
Restricts the sale of the unit in compliance with this chapter during the applicable use restriction period;
b. 
Contains provisions as the town may require to ensure continued compliance with this chapter and state law; and
c. 
Shall be recorded against the parcel containing the designated dwelling unit.
3. 
The applicable restriction period shall be a minimum of ten years for projects with density bonus without financial subsidy or assistance and a minimum of thirty years for projects receiving financial assistance in compliance with Section 13.32.040.
F. 
Rental Housing Conditions. In the case of rental housing developments, the density bonus agreement shall provide for the following conditions governing the use of designated dwelling units during the use restriction period:
1. 
The rules and procedures for qualifying tenants, establishing affordable rent, filling vacancies, and maintaining the designated dwelling units for qualified tenants;
2. 
Provisions requiring owners to annually verify tenant incomes and maintain books and records to demonstrate compliance with this chapter;
3. 
Provisions requiring owners to submit an annual report to the town, which includes the name, address, and income of each person occupying the designated dwelling units, and which identifies the bedroom size and monthly rent or cost of each unit; and
4. 
The applicable use restriction period shall comply with the time limits for continued availability in Section 13.32.040.
(Ord. 205 § 1 (Exh. A), 2003; Ord. 299, 11/12/2024)
In order to maintain the availability of for-sale affordable housing units constructed in compliance with this chapter, the following resale conditions shall apply.
A. 
The price received by the seller of an affordable unit shall be limited to the purchase price plus an increase based on the Sacramento metropolitan area consumer price index, an amount consistent with the increase in the median income since the date of purchase, or the fair market value, whichever is less. Prior to offering an affordable housing unit for sale, the seller shall provide written notice to the town of their intent to sell. The notice shall be provided by certified mail to the director.
B. 
Home ownership affordable units constructed, offered for sale, or sold under the requirements of this section shall be offered to the town or its assignee for a period of at least ninety days from the date of the notice of intent to sell is delivered to the town by the first purchaser or subsequent purchasers. Home ownership affordable units shall be sold and resold from the date of the original sale only to households as determined to be eligible for affordable units by the town according to the requirements of this section. The seller shall not levy or charge any additional fees nor shall any "finders fee" or other monetary consideration be allowed other than customary real estate commissions and closing costs.
C. 
The owners of any affordable unit shall attach and legally reference in the grant deed conveying title of the affordable ownership unit a declaration of restrictions provided by the town, stating the restrictions imposed in compliance with this section. The grant deed shall afford the grantor and the town the right to enforce the attached declaration of restrictions. The declaration of restrictions shall include all applicable resale controls, occupancy restrictions, and prohibitions as required by this section.
D. 
The town shall monitor the resale of ownership affordable units. The town or its designee shall have a ninety-day option to commence purchase of ownership affordable units after the owner gives notification of intent to sell. Any abuse in the resale provisions shall be referred to the town for appropriate action.
(Ord. 205 § 1 (Exh. A), 2003; Ord. 299, 11/12/2024)