The purpose of this chapter is to provide incentives for the production of housing for very low income, lower income, moderate income, and senior households in accordance with Government Code Sections 65915 — 65918. In enacting this chapter, it is the intent of the city to facilitate the development of affordable housing and to implement the goals, objectives, and policies of the housing element of the city's General Plan.
(Ord. 1271, 4/23/2024)
A. 
The city shall grant a density bonus and incentives pursuant to Tables 17.13.020-B and 17.13.020-C to an applicant who agrees to provide any of the following:
Table 17.13.020-A Density Bonus Implementation
Type of Units
Percent of Total Units (Minimum)
Very Low Income
5%
Lower Income
10%
Moderate Income Condominium
10% as defined by Civil Code Sections 1351(f) or (k)
Any Senior Development
Any
B. 
In determining the number of density bonus units to be granted pursuant to this section, the density bonus for the site shall be computed as follows:
Table 17.13.020-B Maximum Allowable Density Bonus per Percent Increase in Units Made Affordable
Type of Household
Maximum Allowable Residential Density
Percent Increases in Units Made Affordable
Very Low Income
+20%
Each 1% increase (after 5%) = 2.5% density bonus increase, up to 50%
Lower Income
+16%
Each 1% increase (after 10%) = 1.5% density bonus increase, up to 50%
Moderate Income Condominium
+5%
Each 1% increase (after 10%) = 1% density bonus increase, up to 50%
100% Affordable Developments
+80%
NA
1. 
Density Bonus for One-Hundred Percent Affordable Developments. Density bonuses are required to be provided for developments that contain one-hundred percent affordable units (out of total units). These developments may have density bonuses up to eighty percent, provided that these developments result in a project cost reduction and that there are no adverse impacts on public health, safety, the environment, or historical properties that could be contrary to the law (AB 1763).
a. 
If one hundred percent affordable developments are located within one half mile of major transit stop, the development is exempt from maximum controls on density (AB 1763).
2. 
Certain Donations of Land. When an applicant for a tentative subdivision map, parcel map, or other residential development approval donates land to the city that satisfies the requirements of Government Code Section 65915(g), and complies with all procedural requirements of that subsection, including recordation of a deed restriction, the maximum allowable residential density for the site shall be increased by fifteen percent; provided, however, that for each one percent increase above the minimum percentage of land required to be donated pursuant to Government Code Section 65915(g), the density bonus shall be increased by one percent up to a maximum of fifty. This increase shall be in addition to any increase required by Section 17.13.020-A, up to a maximum combined density increase of fifty percent, if an applicant seeks both the increase required by this subsection and by Section 17.13.020-A.
3. 
All density calculations resulting in fractional units shall be rounded up to the next whole number. The density bonus shall not be included when determining the percentage of target units. When calculating the required number of target units, any resulting fraction of units shall be deleted.
4. 
Any development receiving a density bonus pursuant to Chapter 17.13 must reserve at least twenty percent of units for affordable housing. Eighty percent of units within the development must be consistent with the maximum rent level for developments that receive low-income tax credits from the California Tax Credit Allocation Committee (CTCAC).
C. 
Number of Incentives. The applicant shall receive the following number of incentives or concessions:
Table 17.13.020-C Number of Incentives (AB 2345)
Number of Incentives
Percent of Total Units: Lower Income Households
Percent of Total Units: Very Low Income Households
Percent of Total Units: Condominium for Moderate Income Households
1
10%
5%
10%
2
17%
10%
20%
3
24%
15%
30%
4
100% Affordable Housing (may include up to 20% moderate income) (AB 1763)
1. 
In cases where a density increase of more than the amount specified in Table 17.13.020-B is requested, the density increase, if granted, shall be considered an additional incentive.
2. 
Incentives provided, however, that these developments result in a project cost reduction and that there are no adverse impacts on public health, safety, the environment, or historical properties that could be contrary to the law.
D. 
In cases where the developer agrees to construct a housing development that qualifies for a density bonus pursuant to Table 17.13.020-A, and that includes a childcare facility as defined in Government Code Section 65915(h)(4), the developer shall be entitled to either an additional density bonus that is an amount of square feet of residential space equal to or greater than the amount of square feet in the childcare facility, or an additional incentive described in Chapter 17.13, that contributes significantly to the economic feasibility of the construction of the childcare facility. Any such childcare facility shall comply with the following:
1. 
The childcare facility shall remain in operation for a period of time that is as long or longer than the period of time during which the density bonus units are required to remain affordable;
2. 
Of the children who attend the childcare facility, the children of very low income households, lower income households, or families of moderate income shall equal a percentage that is equal to or greater than the percentage of dwelling units that are required for very low income households, lower income households, or families of moderate income, pursuant to this chapter;
3. 
Notwithstanding the foregoing, the city shall not be required to provide a density bonus or incentive for a childcare facility when it is found, based upon substantial evidence, that the community has adequate childcare facilities.
(Ord. 1271, 4/23/2024)
Incentives. If requested by the applicant, a qualifying project shall be entitled to the following incentives, the number of which shall be determined pursuant to Section 17.13.020, unless the city makes the written findings required by Government Code Section 65915(d)(1):
A. 
Types of Incentives. Incentives may include, but are not limited to, any of the following:
1. 
A reduction in site development standards which exceed the minimum building standards provided in Part 2.5 (commencing with Section 18901) of Division 13 of the Health and Safety Code. These may include, but are not limited to, one or more of the following:
a. 
Reduced minimum lot sizes and/or dimensions,
b. 
Reduced minimum lot setbacks,
c. 
Reduced minimum outdoor and/or private outdoor open space,
d. 
Increased maximum lot coverage,
e. 
Increased maximum building height:
i. 
If development contains one-hundred percent affordable units and is located within one-half mile of major transit stop, the height of the development may exceed normal thresholds by up to thirty-three feet or three stories.
2. 
Reduced on-site parking standards;
3. 
Reduced minimum building separation requirements;
4. 
Other site or construction conditions applicable to a residential development;
5. 
Mixed-use zoning to allow the housing development to include nonresidential uses and/or allow the housing development to be within a nonresidential zone. Approval of mixed-use activities in conjunction with the housing development if other land uses will reduce the cost of the housing development, and the other land uses are compatible with the housing development and the existing or planned development in the area, and is consistent with the General Plan;
6. 
Another regulatory incentive or concession proposed by the applicant and agreed to by the city, that results in identifiable, financially sufficient, and actual cost reductions. Permissible incentives include direct financial aid (e.g., CAL Home, or other federal or state housing funding) in the form of a loan or a grant to subsidize or provide low interest financing for on- or off-site improvements, land, or construction costs;
7. 
A density bonus of more than thirty-five percent;
8. 
Waived, reduced, or deferred plan check, or construction permit. Impact fees (e.g., capital facilities, park, traffic, etc.) may not be imposed on affordable units in any Density Bonus development (AB 571).
B. 
Requirements.
1. 
Economic Feasibility. Any development incentive granted shall contribute to the economic feasibility of providing the target units.
2. 
Waivers or Modifications of Development Standards. In addition to any density bonus or incentives provided, an applicant may seek a waiver or modification of development standards that would physically preclude the construction of a housing development at the densities or with the incentives permitted by this chapter.
a. 
The applicant may request a meeting with city staff to discuss the applicant's proposal for reduced development standards. The city may not apply any development standard that would physically preclude the construction of a housing development at the densities or with the incentives permitted by this chapter.
b. 
Developments receiving maximum density waiver are only eligible for specified waiver or reduction of development standards unless city agrees to additional waiver or reduction of development standards (AB 1763).
(Ord. 1271, 4/23/2024)
A. 
The entry into and execution of the density bonus housing agreement shall be a condition of a discretionary planning permit (e.g., tract maps, parcel maps, site plans, planned development or conditional use permits) or a ministerial building permit for a housing development proposed pursuant to this chapter. The agreement shall be recorded at the applicant's cost as a restriction running with the land on the parcel or parcels on which the target units will be constructed.
B. 
Target units shall remain restricted and be offered at affordable rents to the designated group for a period of fifty-five years for rental units (or a longer period of time if required by the construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy program), forty-four years for owner-occupied units, or otherwise as provided by law.
C. 
In determining the maximum affordable rent or affordable sales price of target units, the following household and unit size assumptions shall be used, unless the housing development is subject to different assumptions imposed by other governmental regulations.
Table 17.13.040-A Household and Unit Size Assumptions
SRO (residential hotel) unit
75% of 1 person
Studio
1 person
1 bedroom
2 persons
2 bedroom
3 persons
3 bedroom
4 persons
4 bedroom
6 persons
D. 
An applicant shall agree that the initial occupants of the moderate income units in the condominium project are persons and families of moderate income, as defined in Health and Safety Code Section 50093.
E. 
Upon resale, the seller of the unit and the city shall share in the equity as follows:
1. 
The seller of the unit shall retain the value of any improvements, the down payment, and the seller's proportionate share of appreciation.
2. 
The city shall recapture any initial subsidy and its proportionate share of appreciation, which shall then be used within five years for any of the purposes described in Health and Safety Code Section 33334.2(e) that promote homeownership.
3. 
For 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 the initial sale.
4. 
For purposes of this subsection, the city's "initial subsidy" shall be equal to the fair market value of the home at the time of the initial sale minus the initial sale price to the moderate income household, 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 resale shall be used as the initial market value.
F. 
All for-sale target units shall be occupied by their purchasers; no renting or subleasing shall be permitted. The purchaser shall remain on title as long as the purchaser owns the unit.
G. 
The owner of a rental development shall submit annually, and within thirty days of occupancy of a target rental unit, a certificate of compliance, which shall include the name, address, and income of each tenant occupying the target unit.
H. 
The owner of a rental development shall maintain and keep on file annual sworn and notarized income statements and current tax returns for all tenants occupying the target rental units.
I. 
The owner of a rental development shall provide to the city any additional information required by the city to ensure the long-term affordability of the target units by eligible households.
J. 
The city shall have the right to inspect the owner's project-related records at any reasonable time and shall be entitled to audit the owner's records once a year.
K. 
The city may establish fees associated with the setting up and monitoring of target units.
(Ord. 1271, 4/23/2024)
A. 
Target units shall be constructed concurrently with nonrestricted units unless both the city and the applicant agree within the density bonus housing agreement to an alternative schedule for development.
B. 
Target units shall be built on-site wherever possible and when practical, be dispersed within the housing development. Where feasible, the number of bedrooms of the target units shall be equivalent to the bedroom mix of the nontarget units of the housing development, except that the developer may include a higher proportion of target units with more bedrooms. The design and appearance of the target units shall be compatible with the design of the total housing development. All housing developments shall comply with all applicable development standards, except those standards that may be modified as provided by this chapter. Deviations from these provisions may only be permitted as part of an approved density bonus housing agreement.
C. 
Circumstances may arise in which the public interest would be served by allowing some or all of the target units associated with one housing development to be produced and operated at an alternative development site. Where the applicant 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 applicant shall be subject to the same requirements of this chapter for the target units to be provided on the alternative site.
D. 
Parking Requirements. Upon the request of the developer of a housing development qualifying for a density bonus pursuant to this chapter, the city shall permit vehicular parking ratios, inclusive of handicapped and guest parking, in accordance with the following standards:
Table 17.13.050-A Parking Allocation per Number of Bedrooms
Number of Bedrooms
Required Parking Space Allocation
0-1
1 space (on site)
2-3
1.5 spaces (on site)
4+
2.5 spaces
Supportive or special needs housing
Not subject to parking requirements
1. 
If the total number 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 housing development may provide "on-site parking" through tandem parking or uncovered parking, but not through on-street parking.
E. 
Parking Requirements - Special Cases (AB 2345):
Table 17.13.050-B Parking Allocation per Type of Development and Access to Transit
Type of Development
Proximity to Transit
Required Parking Space Allocation
Affordable housing development with at least 11% of units for very low income or 20% of units for low income (calculated off of base density
1/2 mile (unobstructed) to a major transit stop
0.5 spaces per unit
100% affordable developments (lower income households)
1/2 mile (unobstructed)
No parking standards can be imposed
Development for individuals 62+ years complying with Sections 51.2 and 51.3 of the Civil Code
1/2 mile (unobstructed) to a fixed bus route running no less than 8 times a day or paratransit service
0.5 spaces per unit
Affordable housing development (lower income) that is special needs or supportive housing
1/2 mile (unobstructed) to a fixed bus route running no less than 8 times a day or paratransit service
No parking standards can be imposed
(Ord. 1271, 4/23/2024)
An application for a density bonus pursuant to this chapter shall be processed as part of the application for a housing development. An application for a housing development shall not be determined "complete" for purposes of Government Code Section 65920, et seq., unless and until the city council has given preliminary approval of the form and content of a density bonus housing agreement, which complies with the provisions of this chapter. The process for obtaining preliminary approval of the density bonus shall be as follows:
A. 
Filing. An applicant proposing a housing development pursuant to this chapter shall submit an application for a density bonus as part of the submittal of any formal request for approval of a housing development. The application, whether a pre-application or a formal application, shall include:
1. 
A brief description of the proposed housing development, including the total number of units, target units, and density bonus units proposed;
2. 
The zoning and General Plan designations and assessor's parcel number(s) of the project site;
3. 
A vicinity map and preliminary site plan, drawn to scale, including building footprints, driveways, and parking layout; and
4. 
The number and nature of the incentives requested pursuant to this chapter.
B. 
Review of Density Bonus Request.
1. 
Within ninety days of receipt of the application for a density bonus and a housing development, the city shall provide to an applicant a letter, which identifies project issues of concern, and the procedures for compliance with this chapter.
2. 
If additional incentives are requested, the director of community development shall inform the applicant that the requested additional incentives shall or shall not be recommended for consideration with the proposed housing development, or that alternative or modified incentives shall be recommended for consideration in lieu of the requested incentives. If the director of community development recommends alternative or modified incentives, the recommendation shall establish how the alternative or modified incentives can be expected to have an equivalent affordability effect as the requested incentives.
C. 
Approval. The city shall approve a density bonus and requested incentives in conjunction with a discretionary planning permit or ministerial building permit for a housing development if the application complies with the provisions of this chapter. The execution and recordation of the density bonus housing agreement shall be a condition of approval of the discretionary planning permit or ministerial building permit.
(Ord. 1271, 4/23/2024)
A. 
The terms of the draft density bonus housing agreement (the "agreement") shall be reviewed and revised as appropriate by the director of community development and the city attorney who shall formulate a recommendation to the planning commission for review and the city council for final approval.
B. 
Following execution of the agreement by the applicant and the city, the completed agreement, or memorandum thereof, shall be recorded. The conditions contained in the agreement shall be filed and recorded on the parcel or parcels designated for the construction of target units as a condition of final map approval, or, where a map is not being processed, prior to issuance of building permits for such parcels or units. The agreement shall be binding upon all future owners and successors-in-interest for this property, which is the subject of the housing development application.
C. 
At a minimum, the agreement shall include the following:
1. 
The total number of units proposed within the housing development, including the number of target units;
2. 
A description of the household income group to be accommodated by the housing development, and the standards for determining the corresponding affordable rent or affordable sales price and housing cost;
3. 
The location, unit sizes (square feet) and number of bedrooms of target units;
4. 
Tenure of use restrictions for target units per the period of time outlined in Table 17.13.050-B;
5. 
A schedule for completion and occupancy of target units;
6. 
A description of any additional incentive being provided by the city;
7. 
A description of remedies for breach of the agreement by either party (the city may identify tenants or qualified purchasers as third party beneficiaries under the agreement); and
8. 
Other provisions to ensure implementation and compliance with this chapter.
D. 
In the case of for-sale housing developments, the agreement shall provide for the following conditions governing the initial sale and use of target units during the applicable use restriction period:
1. 
Target units shall, upon initial sale, be sold to and occupied by eligible very low, lower, or in the case of a condominium, moderate income households at an affordable sales price and housing cost, or to qualified senior citizen residents (i.e., maintained as senior citizen housing) or to qualified veteran housing residents.
2. 
The initial purchaser of each target unit shall execute an instrument or agreement, approved by the city attorney, restricting the sale of the target unit in accordance with this chapter during the applicable use restriction period. Such instrument or agreement shall be recorded against the parcel containing the target unit and shall contain provisions as the city may require to ensure continued compliance with this chapter and the State Density Bonus Law.
E. 
In the case of rental housing developments, the agreement shall provide for the following conditions governing the use of target units during the use restriction period:
1. 
The rules and procedures for qualifying tenants, establishing affordable rent, filling vacancies and the proper management and maintenance of target units for qualified tenants;
2. 
Provisions requiring owners to verify tenant incomes and maintain books and records to demonstrate compliance with this chapter; and
3. 
Provisions requiring owners to submit an annual report to the city, which includes the name, address and income of each person occupying target units, and which identifies the bedroom size and monthly rent or cost of each target unit.
(Ord. 1271, 4/23/2024)
It is the intent of the city council that the provisions of this chapter shall be interpreted so as to fulfill the requirements of Government Code Section 65915 et seq., notwithstanding changes in state laws revising percentages, numerical thresholds and/or other standards applicable to the granting of density bonuses or related incentives that may occur after the effective date of the ordinance codified in this chapter. Accordingly, it is the further intent of the city council that any such changed percentages, numerical thresholds or other standards shall be deemed to supersede and govern any conflicting percentages, numerical thresholds or other standards contained in this chapter, to the maximum extent permitted by law.
(Ord. 1271, 4/23/2024)