Prior History: Ord. 16-05 §12.
In accordance with California Government Code Sections 65915, et seq., this chapter specifies how compliance with State Density Bonus Law will be implemented. Specifically, the purpose of this chapter is to provide density bonuses, incentives, concessions, and waivers of development standards for the production of housing for very low-, low-, and moderate-income households, senior households, provision of daycare facilities, student housing, and donations of land, and for other housing types as provided by state law and outlined in Government Code Section 65915 through 65918. In enacting this chapter, it is also the intent of the City to implement the goals, objectives, and policies of the City's Housing Element of the General Plan.
(Ord. 25-01, 2/18/2025, Ord. 25-05, 9/16/2025)
The definitions found in State Density Bonus Law shall apply to the terms contained in this chapter. "Replace" is defined in Government Code Section 65915(c)(3)(A) and (B).
(Ord. 25-01, 2/18/2025, Ord. 25-05, 9/16/2025)
An applicant for a "housing development" as defined in State Density Bonus Law shall be eligible for a density bonus and other regulatory benefits that are provided by State Density Bonus Law when the applicant seeks and agrees to provide housing as specified in Government Code Section 65915(b), (c), (f), (g), (h) and (v), or in Government Code Section 65195.5, or successor provisions. The density bonus calculations shall be made in accordance with State Density Bonus Law.
The granting of a density bonus, incentive, or concession, pursuant to this chapter, shall not be interpreted, in and of itself, to require a general plan amendment, development code amendment, zone change, other discretionary approval, or the waiver of a City ordinance or provisions of a City ordinance unrelated to development standards.
All requests for density bonuses, incentives, parking reductions, and waivers for a housing development shall be filed with and on a form provided by the City Manager, or designee, concurrently with the filing of the planning application for the first discretionary or ministerial permit required for the housing development, whichever permit is earliest. The applicant shall be informed whether the application is complete consistent with Government Code Section 65943.
The application shall include the required fee and the following minimum information:
A. 
For a requested density bonus.
1. 
Summary table showing the maximum number of dwelling units permitted by the zoning and general plan excluding any density bonus units, proposed affordable units by income level, proposed bonus percentage, number of density bonus units proposed, total number of dwelling units proposed on the site, and resulting density in units per acre, residential gross floor area and total gross floor area proposed on the site, resulting density in units per acre or floor area ratio, depending on the density definition for the land use designation and zoning applicable to the housing development site, proposed parking stalls, and unit bedroom counts and unit types for the purpose of calculating parking requirements.
2. 
Subparagraph of Government Code Section 65915(b)(1) under which the housing development qualifies for a density bonus and reasonable documentation demonstrating that the housing development is eligible for a bonus under that subparagraph.
3. 
Where the housing development is seeking an additional bonus, the subparagraph of Government Code Section 65915(v)(1) under which the housing development qualifies for an additional density bonus and reasonable documentation demonstrating that the housing development is eligible for the additional bonus under that subparagraph.
4. 
A tentative map or preliminary site plan, drawn to scale, showing the number and location of all proposed units, designating the location of proposed affordable units and density bonus units.
5. 
The zoning and general plan designations and assessor's parcel number(s) of the housing development site and, if reduced parking is requested on the basis of location, the distance to the nearest major transit stop, as defined in Section 21155 of the Public Resources Code.
6. 
To determine whether the project is subject to replacement requirements as described in Government Code Section 65915(c)(3), provided the following.
a. 
The total number of dwelling units existing on the site in the five year period preceding the date of submittal of the application.
b. 
The total number of bedrooms in each dwelling unit existing on the site in the five year period preceding the date of submittal of the application.
c. 
The total number of dwelling units that are or were subject to a recorded covenant, ordinance or law applicable to the site that restricted rents to levels affordable to very- low- or lower-income households in the five year period preceding the date of submittal of the application.
d. 
The total number of occupied dwelling units and the income and household size of all residents of currently occupied units or a statement from the applicant that such information is unknown.
e. 
The total number of vacant dwelling units on the site and the income and household size of the prior residents occupying those dwelling units when the site contained the maximum number of dwelling units or a statement from the applicant that such information is unknown.
7. 
The phasing of the construction of the affordable housing units in relation to the nonrestricted units in the housing development.
8. 
A marketing plan for the affordable housing units, as well as an explanation of the methods to be used to verify tenant and/or buyer incomes and to maintain affordability of the affordable housing units. For a housing development with five dwelling units or more, the density bonus housing plan shall specify a financing mechanism for ongoing administration and monitoring of the affordable housing units.
9. 
If a density bonus is requested for a land donation, the location of the land to be dedicated, proof of site control, and reasonable documentation that each of the requirements included in Government Code Section 65915(g) can be met.
B. 
Requested Incentives/Concessions. Incentives and concessions are those defined by State Density Bonus Law. The number of incentives or concessions that may be requested shall be based upon the number the applicant is entitled to pursuant to State Density Bonus Law Government Code Section 65915(d)(2)(A) , as it may be amended. The application shall include the following minimum information for each incentive or concession requested, shown on a site plan (if appropriate):
1. 
The number of incentives/concessions the applicant is eligible for pursuant to State Density Bonus Law.
2. 
The City's usual development standard or other regulatory standard and the requested incentive/concession.
3. 
Reasonable documentation that the incentive/concession will result in identifiable and actual cost reductions.
4. 
Reasonable documentation that the amount of cost reduction is used to provide the affordable units at affordable house costs or affordable rents.
C. 
Requested Waivers. If waivers or reductions of development standards are requested, the following minimum information for each waiver requested on each lot, shown on a site plan if appropriate:
1. 
The City's usual development standard and the requested development standard waiver.
2. 
Reasonable documentation that the development standards for which a waiver is requested will have the effect of physically precluding the construction of a development at the densities or with the incentive/concession permitted by Government Code Section 65915 and the waiver is no greater than necessary to reasonably accommodate the construction of such a development.
D. 
Parking Reductions. If a housing development is eligible for a density bonus pursuant to State Density Bonus Law, the applicant may request an on-site vehicular parking ratio specified in Government Code Section 65915(p). An applicant may request this parking reduction in addition to the incentives and waivers permitted by subsections (B) and (C) of this section. The application shall include a table showing parking required by the zoning regulations, parking proposed under State Density Bonus Law, paragraph under Government Code Section 65915(p) (or other statute) under which the project qualifies for the parking reduction, and reasonable documentation that the project is eligible for the requested parking reduction.
E. 
Density Bonus or Incentive For a Child Care Facility in a Housing Development. The application shall include reasonable documentation that all of the requirements included in Government Code Section 65915(h) can be met.
F. 
Density Bonus or Incentive For a Condominium Conversion. The application shall include reasonable documentation that all of the requirements included in Government Code Section 65915.5 can be met.
(Ord. 25-01, 2/18/2025, Ord. 25-05, 9/16/2025)
A. 
State Density Bonus Law provides that it shall not be construed to supersede or in any way alter or lessen the effect or application of the California Coastal Act of 1976 (Cal. Public Resources Code § 30000 et seq.), and further provides that the granting of a density bonus or an incentive shall not be interpreted, in and of itself, to require a local coastal plan amendment.
B. 
For development within the coastal zone, any requested density bonus, incentive, waiver, or parking reduction shall be consistent with all applicable requirements of the certified City of Sand City Local Coastal Program, with the exception of density.
(Ord. 25-01, 2/18/2025, Ord. 25-05, 9/16/2025)
A. 
All requests under State Density Bonus Law shall be part of the planning application and shall be applied for, reviewed by the City Manager, and acted upon concurrently with the planning application by the City Council, within the timelines prescribed by California Government Code Section 65950 et seq. or other applicable statute. Appeals related to administration of the subject ordinance shall be addressed in accordance with the requirements of Chapter 17.72 shall include all requests under State Density Bonus Law if appeals are authorized for the discretionary or ministerial permit applied for.
B. 
To ensure that an application for a housing development conforms with the provisions of State Density Bonus Law and the Coastal Act, if applicable, the staff report presented to the decision- making body shall state whether the application conforms to the following requirements of State Density Bonus Law, as applicable:
1. 
The housing development provides the housing required by State Density Bonus Law to be eligible for a density bonus and any concessions or incentives, parking reduction, or waivers requested.
2. 
If applicable, the housing development provides the housing required by State Density Bonus Law to be eligible for an additional density bonus under Government Code Section 65915(v)(1).
3. 
If a concession or incentive is requested, reasonable documentation has been presented showing that any requested incentive will result in identifiable and actual cost reductions to provide for affordable housing or costs or rents; except that, if a mixed-use development is requested, the application must instead meet all of the requirements of Government Code Section 65915(k)(2).
4. 
If a waiver is requested, the development standards for which a waiver is requested would have the effect of physically precluding the construction of the housing development at the densities or with the incentives permitted.
5. 
The housing development is eligible for any requested parking reductions under Government Code Section 65915(p) or other statute.
6. 
If the density bonus is based all or in part on donation of land, the requirements of Government Code Section 65915(g) have been met.
7. 
If the density bonus or incentive is based all or in part on the inclusion of a child care facility or condominium conversion, the requirements included in Government Code Section 65915(h) or 65915.5, as appropriate, have been met.
8. 
If the housing development is in the coastal zone, the requested density bonus and any requested incentive, waiver or parking reduction is consistent with all applicable requirements of the certified Local Coastal Program.
9. 
The property for which a density bonus is proposed is eligible to receive a density bonus in accordance with Government Code Section 65915(c)(3)(A) (Replacement of moderate or lower income units).
C. 
An applicant shall be ineligible for a density bonus or any other incentives or concessions under California Government Code Section 65915(c)(3)(A) if the housing development is proposed on any property that includes a parcel or parcels on which rental dwelling units are located or, if the dwelling units have been vacated or demolished in the five-year period preceding the application, have been subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of lower or very low income; subject to any other form of rent or price control through a public entity's valid exercise of its police power; or occupied by lower or very low income households, unless the proposed housing development replaces those units, and either of the following applies:
1. 
The proposed housing development, inclusive of the units replaced pursuant to this paragraph, contains affordable units at the percentages set forth in California Government Code Section 69515(b), as it may be amended.
2. 
Each unit in the development, exclusive of the manager's unit or units, is affordable to, and occupied by, either a lower or very low income household.
The affordable replacement units shall be made available at affordable rent or affordable housing cost to, and occupied by, low income persons or families. If the replacement units will be rental dwelling units, these units shall be subject to a recorded affordability restriction for at least 55 years if required by the construction mortgage financing assistance program mortgage insurance program, or rental subsidy program.
D. 
The City Council shall grant a concession or incentive requested by the applicant unless it makes a written finding, based upon substantial evidence, of any of the following:
1. 
The proposed concession or incentive does not result in identifiable and actual cost reductions to provide for affordable housing costs, as defined in Health and Safety Code Section 50052.5; or for affordable rents, as defined in Health and Safety Code Section 50053; or
2. 
The proposed concession or incentive would be contrary to state or federal law; or
3. 
The proposed concession or incentive would have a specific, adverse impact upon the public health or safety or on any real property that is listed in the California Register of Historic Resources, and there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact without rendering the housing development unaffordable to low- and moderate-income households. For the purpose of this subsection, "specific, adverse impact" means a significant, quantifiable, direct and unavoidable impact, based on objective, identified, written public health or safety standards, policies, or conditions as they existed on the date that the application for the housing development was deemed complete as defined in Government Code Section 65589.5.
E. 
The decision-making body shall grant the waiver of development standards requested by the applicant unless it makes a written finding, based upon substantial evidence, of any of the following:
1. 
The proposed waiver would be contrary to state or federal law; or
2. 
The proposed waiver would have an adverse impact on any real property listed in the California Register of Historic Resources; or
3. 
The proposed waiver would have a specific, adverse impact upon the public health or safety, and there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact without rendering the housing development unaffordable to low- and moderate-income households. For the purpose of this subsection, "specific, adverse impact" means a significant, quantifiable, direct and unavoidable impact, based on objective, identified, written public health or safety standards, policies, or conditions as they existed on the date that the application for the housing development was deemed complete as defined in Government Code Section 65589.5.
F. 
If a child care center complies with the requirements of Government Code Section 65915(h), the decision-making body may deny a density bonus or incentive that is based on the provision of child care facilities only if it makes a written finding, based on substantial evidence, that the City already has adequate child care facilities.
G. 
A request for minor modification of an approved density bonus housing plan may be granted by the City Manager if the modification substantially complies with the original density bonus housing plan and conditions of approval. Other modifications to the density bonus housing plan shall be processed in the same manner as the original plan.
(Ord. 25-01, 2/18/2025, Ord. 25-05, 9/16/2025)
A. 
If a density bonus, incentive, parking reduction, or waiver is approved pursuant to this chapter, the applicant shall enter into a binding affordable housing agreement or restrictive covenant, as described below, with the City, which sets forth the conditions and guidelines to be met in the implementation of State Density Bonus Law and that ensures compliance with all of the provisions of this chapter. The agreement will also establish specific compliance standards and remedies available to the City upon failure by the applicant to comply with State Density Bonus Law, this chapter, or the affordable housing agreement.
B. 
For rental projects, the applicant shall enter into an affordable housing agreement with the City, running with the land, in a form approved by the City Attorney, to be executed by the City Manager, or their designee. The agreement shall require the continued affordability of all rental units that qualified the applicant for the receipt of the density bonus, incentive, waiver, or parking reduction for a minimum of 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; shall identify the type, size and location of each affordable unit; shall specify the eligible occupants; shall specify phasing of the affordable units in relation to the market-rate units; and shall contain other relevant provisions approved by the City Attorney. Rents for the lower income density bonus units shall be set at an affordable rent as defined in State Density Bonus Law.
C. 
For for-sale projects, the applicant shall enter into an affordable housing agreement with the City, running with the land, in a form approved by the City Attorney to be executed by the City Manager, or their designee. The affordable housing agreement shall require that, the initial purchasers of those for-sale units that qualified the applicant for the receipt of the density bonus, incentive, waiver, or parking reduction are persons and families of very low, low, or moderate income, as applicable, or if any for-sale unit is not purchased by an income-qualified household within 180 days after the issuance of the certificate of occupancy, then the unit(s) must be sold pursuant to a contract that satisfies the requirements of Government Code Section 65915(c)(2)(A)(ii), to a qualified non-profit housing corporation as defined in State Density Bonus Law and that the units are offered at an affordable housing cost, as that cost is defined in Health and Safety Code Section 50052.5; and shall contain other relevant provisions approved by the City Attorney, the City shall enforce an equity sharing agreement consistent with State Density Bonus Law unless it is in conflict with the requirements of another public funding source or law. The affordable housing agreement shall require the continued affordability of the for-sale units for 15 years.
D. 
Where a density bonus, waiver or parking reduction is provided for a market-rate senior housing development, the applicant shall enter into a restrictive covenant with the City, running with the land, in a form approved by the City Attorney, to be executed by the City Manager, or their designee, to require the housing development to be operated as "housing for older persons" consistent with state and federal fair housing laws.
E. 
The executed affordable housing agreement shall be recorded against the housing development prior to final or parcel map approval, or, where a map is not being processed, prior to issuance of building permits for the housing development, whichever is earliest. The affordable housing agreement shall be binding on all future owners and successors in interest.
F. 
An agreement pursuant to this section shall be approved as to form and content by the City Attorney and shall be recorded against the housing development project prior to final map or parcel map approval, or, where a map is not being processed, prior to issuance of any building permit for the housing development.
The agreement shall include, but not be limited to, the following:
1. 
The total number of units approved for the housing development; the number, location and level of affordability of target units and the number of density bonus units.
2. 
Standards for determining affordable rent or ownership cost for target units.
3. 
The location, unit size in square feet and number of bedrooms of target units.
4. 
Provisions as required by this section to ensure continued affordability.
5. 
A schedule for completion and occupancy of target units in relation to construction of market-rate units.
6. 
A description of any incentive/concession, waiver or reduction of development standard or modification of parking standard being provided by the city.
7. 
A description of remedies for breach by either party and the identification of any thirdparty beneficiary or beneficiaries eligible to enforce a breach by the applicant.
8. 
In the case of rental housing, procedures for filling vacancies, provisions requiring maintenance of records to demonstrate compliance with this division and the developer's agreement that restrictions on rents are consistent with the Costa-Hawkins Act (Civil Code Section 1954.51, et seq.).
9. 
Procedures for verifying household incomes.
10. 
Financing of ongoing administrative and monitoring costs.
11. 
Other provisions as necessary or convenient to ensure implementation and compliance with this division.
(Ord. 25-01, 2/18/2025, Ord. 25-05, 9/16/2025)
A. 
In determining the total number of units to be granted, each component of any density calculation, including base density and bonus density, resulting in fractional units shall be separately rounded up to the next whole number.
B. 
When calculating the number of affordable units needed to qualify for a given density bonus, any fractions of affordable dwelling units shall be rounded up to the next whole number.
C. 
Except where a housing development is eligible for an additional bonus pursuant to Government Code Section 65915(v), each housing development is entitled to only one density bonus. If a housing development qualifies for a density bonus under more than one category, the applicant shall identify the category under which the density bonus is requested to be granted.
D. 
For the purpose of calculating a density bonus, the dwelling units shall be on contiguous sites that are the subject of one development application but do not have to be based upon individual subdivision maps or parcels. The density bonus shall be permitted in any geographic area of the housing development, including areas other than where the affordable units are located.
E. 
In determining the number of affordable units required to qualify a housing development for a density bonus pursuant to State Density Bonus Law, units added by a density bonus are not included in the calculations.
F. 
The applicant may elect to accept a lesser percentage of density bonus than the housing development is entitled to, or no density bonus, but no reduction will be permitted in the percentages of affordable units required by State Density Bonus law. The City Council may grant a density bonus greater than what is described in this Chapter and Government Code Section 65915 for a development that meets the requirements of this chapter.
G. 
Calculation of base units. Base density will be calculated as follows:
1. 
Where dwelling units per acre is the density standard, the base units equal the maximum allowable residential density or the project units, whichever is smaller.
2. 
Where floor area ratio is the density standard, the base units are proportional to the number of project units and maximum allowable residential floor area, with the same ratio of project units to residential floor area, calculated as follows:
a. 
If the project residential gross floor area is less than the maximum allowable residential gross floor area, the base units equal the project units.
b. 
Where bonus FAR is less than or equal to the maximum allowable residential density in the general plan, the bonus FAR may be combined with a state density bonus.
c. 
The base units are calculated as set forth in subsection G.2 of this section, provided that the maximum floor area ratio may include the bonus FAR if the project otherwise qualifies for bonus FAR.
d. 
Where bonus FAR is greater than the maximum allowable residential density in the general plan, the bonus FAR cannot be combined with a state density bonus. The base units are calculated as set forth in subsection G.2 of this section, provided that the maximum floor area ratio shall not include any bonus FAR.
H. 
Nothing in this chapter requires the provision of direct financial incentives from the City for the housing development, including, but not limited to, the provision of financial subsidies, publicly owned land, fee waivers, or waiver of dedication requirements. The City, at its sole discretion, may choose to provide such direct financial incentives.
I. 
The City, at its sole discretion, may grant a proportionately lower density bonus than what is required in the State Density Bonus Law for developments that do not provide a sufficient number of affordable units to be eligible for a density bonus pursuant to State Density Bonus Law.
J. 
The City Manager or designee shall have the authority to prepare, adopt and periodically update administrative guidelines consistent with this division and State Density Bonus Law.
K. 
Allowed Density Bonuses. A housing development that meets one of the eligibility levels as set forth in Government Code Section 65915(b) is entitled to a density bonus calculated as referenced in Government Code Section 65915(f).
(Ord. 25-01, 2/18/2025, Ord. 25-05, 9/16/2025)
A. 
Building permits and final inspections or certificates of occupancy shall be issued concurrently for the market rate units and for any affordable units that qualified the project for a density bonus, incentive, waiver, or parking reduction, so that the affordable units comprise the required percentage of total units.
B. 
Affordable units shall be comparable in exterior appearance and overall quality of construction to market rate units in the same housing development. Interior finishes and amenities may differ from those provided in the market rate units, but neither the workmanship nor the products may be of substandard or inferior quality as determined by the City.
C. 
To comply with fair housing laws, the affordable units shall contain the same proportional mix of bedroom sizes as the market-rate units. In mixed-income buildings, the occupants of the affordable units shall have the same access to the common entrances and to the common areas, parking, and amenities of the project as the occupants of the market-rate housing units, and the affordable units shall be located throughout the building and not isolated on one floor or to an area on a specific floor.
(Ord. 25-01, 2/18/2025, Ord. 25-05, 9/16/2025)
A. 
The following definitions shall apply to this section:
1. 
"Commercial development" means a development project for nonresidential and nonindustrial uses.
2. 
"Commercial development bonus" means modification of development standards mutually agreed upon by the City and a commercial developer and provided to a commercial development eligible for such a bonus under subsection C. Examples of a commercial development bonus include an increase in floor area ratio, increased building height, or reduced parking.
3. 
"Partnered housing agreement" means an agreement approved by the City between a commercial developer and a housing developer identifying how the commercial development will provide housing available at an affordable ownership cost or affordable rent consistent with this chapter. A partnered housing agreement may consist of the formation of a partnership, limited liability company, corporation, or other entity recognized by the state in which the commercial developer and the housing developer are each partners, members, shareholders, or other participants, or a contract between the commercial developer and the housing developer for the development of both the commercial development and the housing development.
B. 
When an applicant proposes to construct a commercial development and has entered into a partnered housing agreement approved by the City, the City shall grant a commercial development bonus mutually agreed upon by the developer and the City. The commercial development bonus shall not include a reduction or waiver in fees imposed on the commercial development to provide for affordable housing.
C. 
The partnered housing agreement shall include all of the following provisions:
1. 
The housing development shall be located on the site of the commercial development or on a site that is all of the following: (a) within the boundaries of the local government; (b) on a site within the City that is within one-half mile of a major transit stop, as defined in Public Resources Code Section 21155(c); and is in close proximity to public amenities, including schools and employment centers.
2. 
At least 30% of the total units in the housing development shall be made available at an affordable ownership cost or affordable rent to low-income households, or at least 15% of the total units in the housing development shall be made available at an affordable ownership cost or affordable rent to very low-income households.
3. 
The commercial development must agree either to directly build the affordable housing units, donate a site consistent with the requirements of Government Code Section 65915(g) for the development of the affordable housing units, or make a cash payment to the housing developer for the development of the affordable housing units.
D. 
An approved partnered housing agreement shall be described in the City's Housing Element annual report as required by Government Code Section 65915.7(k).
A Commercial Development may request and receive a Development Bonus pursuant to the provisions of Government Code Section 65915.7.
(Ord. 25-01, 2/18/2025, Ord. 25-05, 9/16/2025)
If any portion of this chapter conflicts with State Density Bonus Law or other applicable state law, state law shall supersede this chapter. Any ambiguities in this chapter shall be interpreted to be consistent with State Density Bonus Law. Statutory references in this ordinance include successor provisions.
(Ord. 25-01, 2/18/2025, Ord. 25-05, 9/16/2025)