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. 
When an applicant proposes to construct an eligible residential development project as defined in Section 17.22.020, and includes a child care facility that will be located on the premises of, as part of, or adjacent to, the project, the city shall grant either of the following:
1. 
An additional density bonus that is an amount of square feet of residential space that is equal to or greater than the amount of square feet in the child care facility.
2. 
An additional incentive that contributes significantly to the economic feasibility of the construction of the child care facility.
B. 
The city shall require, as a condition of approving the housing development, that the following occur:
1. 
The child care facility shall remain in operation for a period of time that is as long as or longer than the period of time during which the density bonus units are required to remain affordable pursuant to Section 17.22.040.
2. 
Of the children who attend the child care facility, the children of very low, lower and moderate income house-holds shall equal a percentage that is equal to or greater than the percentage of dwelling units that are required for very low, lower or moderate income households pursuant to subsection 17.22.020(B).
C. 
Notwithstanding subsections (A) and (B) above, the city shall not be required to provide a density bonus or incentive for a child care facility if it finds, based upon substantial evidence, that the community has adequate child care facilities.
(Ord. 905 § 1, 2005)
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)