This chapter is intended to encourage the development of affordable housing projects in compliance with the mandates of state law (Cal. Gov. Code § 65915). State law requires that local governments grant density bonuses of at least twenty percent plus additional incentives to facilitate the economic feasibility of affordable housing projects. Density bonuses and incentives are available to developers who agree to construct at least:
A. 
Ten percent of the units affordable to lower income households;
B. 
Five percent of the units affordable to very low income households;
C. 
Senior citizen housing containing a minimum of thirty-five dwelling units; or
D. 
Ten percent of the total dwelling units in a common interest development affordable to moderate income households; provided, that all the units in the development are offered for purchase.
(Ord. 700 § 2 (Exh. 1), 2012)
A. 
“Affordable”
means housing units offered at an affordable rent or sales price.
B. 
“Affordable rent”
means monthly housing expenses, including a reasonable allowance for utilities, for rental target units reserved for very low or low income households, not exceeding the following calculations:
1. 
Very low income: fifty percent of the median income for Los Angeles County adjusted for household size, multiplied by thirty percent and divided by twelve;
2. 
Low income: sixty percent of the area median income for Los Angeles County adjusted for household size, multiplied by thirty percent and divided by twelve.
C. 
“Affordable sales price”
means a sales price for which the income of very low, low, or moderate income households, adjusted for household size, is sufficient to qualify for the purchase of target units, calculated on the basis of underwriting standards of mortgage financing for the development.
D. 
“Density bonus”
means a minimum density increase of at least five percent over the maximum allowable residential density of the zoning district in which the site is located.
E. 
“Density bonus units”
means those residential units allowed pursuant to the provisions of this chapter which exceed the maximum residential density for the development site.
F. 
“Household size”
means the number of persons assumed in determining the affordable rent or affordable sales price of target units. Two persons will be assumed for one-bedroom units and three persons will be assumed for two-bedroom units.
G. 
“Housing cost”
means the sum of actual or projected monthly payments for all of the following associated with for-sale target units:
1. 
Principal and interest on a mortgage loan, including any loan insurance fees;
2. 
Property taxes and assessments;
3. 
Fire and casualty insurance;
4. 
Property maintenance and repairs;
5. 
Homeowners’ association fees; and
6. 
A reasonable allowance for utilities.
H. 
“Housing development”
means construction projects consisting of five or more residential units, including single-family, multifamily, and mobilehomes for sale or rent.
I. 
“Incentives”
means the regulatory concessions that are specified in Cal. Gov. Code § 65915(k), and include without limitation:
1. 
A reduction in the site development standards, or a modification of the zoning code requirements or architectural design requirements. These standards and requirements may be modified if they exceed the minimum building standards approved by the California Building Standards Commission (as provided in Cal. Health & Saf. Code Division 13, Part 2.5, commencing with Cal. Health & Saf. Code § 18901). The incentives may include without limitation a reduction in setback and square footage requirements and in the ratio of vehicular parking spaces that would otherwise be required;
2. 
Approval of mixed-use zoning in conjunction with the affordable housing development project;
3. 
Any other regulatory incentive or concession which would result in identifiable cost reductions.
J. 
“Low income household”
means a household where the income does not exceed eighty percent of the county median income for Los Angeles County, as published and periodically updated by the State Department of Housing and Community Development pursuant to Cal. Health & Saf. Code § 50079.5.
K. 
“Maximum residential density”
means the maximum number of dwelling units that can be built on a site based on the maximum number of dwelling units per acre permitted by the general plan and this title, excluding the provisions of this chapter.
L. 
“Moderate income household”
means a household where the income does not exceed one hundred twenty percent of the county median income for Los Angeles County, as published and periodically updated by the State Department of Housing and Community Development pursuant to Cal. Health & Saf. Code § 50079.5.
M. 
“Operating agreement”
means a legally binding agreement between a developer and the city that is recorded against the property. The purpose of the agreement is to ensure that the requirements of this chapter of the development code are satisfied. Among other items, the agreement shall establish:
1. 
The number of target units;
2. 
The size of the target units;
3. 
The location of the target units;
4. 
The terms and conditions of affordability; and
5. 
The production schedule.
N. 
“Nonrestricted units”
means all units within a housing development project other than the target units.
O. 
“Qualifying housing development”
means an affordable housing development project in which the applicant agrees to provide one of the following:
1. 
At least ten percent of the total units of the housing development as target units affordable to low income households;
2. 
At least five percent of the total units of the housing development as target units affordable to very low income households;
3. 
A senior citizen housing development; or
4. 
At least ten percent of the total units in a common interest development as target units affordable to moderate income households; provided, that all the units in the development are offered for purchase.
P. 
“Qualifying resident”
means senior citizens or other persons eligible to reside in a senior citizen housing development.
Q. 
“Senior citizen housing development”
means a housing development which has been designed to meet the physical and social needs of senior citizens and which qualifies as “senior citizen housing” pursuant to Cal. Civ. Code § 51.3.
R. 
“Target unit”
means a dwelling unit in a housing development that is reserved as affordable or is reserved for qualifying residents so as to qualify for development incentives pursuant to this chapter.
S. 
“Very low income household”
means a household with an income which does not exceed fifty percent of the median income of Los Angeles County, as published and periodically updated by the State Department of Housing and Community Development pursuant to Cal. Health & Saf. Code § 50105.
(Ord. 700 § 2 (Exh. 1), 2012)
A. 
Very Low and Lower Income Housing.
1. 
An applicant of a qualified housing development project with target units that includes at least ten percent of the total units that are reserved as affordable for lower income households or five percent for very low income households for a period of no less than thirty years is entitled to a density bonus of twenty percent and one incentive.
2. 
A second incentive shall be provided for qualified housing development projects with target units that include at least twenty percent of the total units that are reserved as affordable for lower income households or ten percent for very low income households, for a period of no less than thirty years.
3. 
A third incentive shall be provided for qualified housing development projects with target units that include at least thirty percent of the total units that are reserved as affordable for lower income house-holds or fifteen percent for very low income households, for a period of no less than thirty years.
4. 
Additional density bonuses of up to thirty-five percent shall be awarded by city council in compliance with Cal. Gov. Code § 65915(f) if the qualified housing development project includes more than ten percent affordable lower income units or five percent affordable very low income units.
B. 
Common Interest Developments.
1. 
An applicant for a common interest development which includes at least ten percent of the total units that are reserved as affordable for moderate income households for a period of no less than thirty years is entitled to a density bonus of five percent and one incentive.
2. 
A second incentive shall be provided for a common interest development which includes at least twenty percent of the total units that are reserved as affordable for moderate income households for a period of no less than thirty years.
3. 
A third incentive shall be provided for a common interest development which includes at least thirty percent of the total units that are reserved as affordable for moderate income households for a period of no less than thirty years.
4. 
Additional density bonuses of up to thirty-five percent shall be awarded by city council in compliance with Cal. Gov. Code § 65915(f) if the common interest development includes more than ten percent affordable moderate income units.
C. 
An applicant for a qualified senior citizen housing project is entitled to a density bonus of twenty percent.
D. 
Additional incentives may only be granted to the extent determined necessary by the city council to render a housing development project economically feasible. Incentives that involve modification to established architectural, building or engineering standards may only be granted by the city council when the city council has determined that such modifications:
1. 
Will not substantially compromise the proper utilization and functioning of the site for residential purposes; and
2. 
Will not have an adverse impact on surrounding properties.
E. 
The incentives may include without limitation:
1. 
Modification of the number of required parking spaces;
2. 
Modification of the minimum setbacks;
3. 
Modification of architectural design requirements that exceed the minimum building standards approved by the State Building Standards Commission as set forth in Cal. Health & Saf. Code Division 13, Part 2.5 (commencing with Cal. Health & Saf. Code § 18901);
4. 
Modification of requirements for public works improvements or other on-site or off-site physical improvements;
5. 
Expedited case processing; or
6. 
Deferred payment of the city’s development impact fees.
F. 
The following criteria shall be used to determine the minimum number of density bonus units to be granted and the minimum number of target units to be provided for affordable housing projects pursuant to this section.
1. 
The minimum number of density bonus units for lower or very low affordable housing granted pursuant to this chapter equals the maximum residential density for the site multiplied by 0.2. The minimum number of density bonus units for a common interest development granted pursuant to this chapter equals the maximum residential density for the site multiplied by 0.05. Any fractions of units will be rounded to the next largest number.
2. 
The minimum number of target units to be provided pursuant to this chapter equals the maximum residential density multiplied by 0.05, if the target units are restricted and affordable to very low income households, or 0.10, if the target units are restricted and affordable to lower income households or moderate income households as part of a common interest development.
3. 
In cases where a density increase of less than twenty percent (or five percent in the case of common interest developments) is requested, no reduction shall be allowed in the number of target units required.
4. 
If the applicant proposes more affordable units than the minimum required to obtain a density bonus, the city council shall provide a greater density bonus of up to thirty-five percent, as required by Cal. Gov. Code § 65915(f); however, in no case may the qualified housing development project obtain a density bonus greater than thirty-five percent.
G. 
The applicable residential district development standards shall apply to affordable housing projects submitted pursuant to this chapter. However, modifications shall be allowed by the city council if the applicant demonstrates to the satisfaction of city council that the affordable housing project cannot be built at the proposed density or it is not financially feasible to be built by complying with the city’s development standards. To achieve the best possible design for affordable housing projects, the applicant shall work with planning department to determine the most appropriate modifications to be made to the city’s development standards and the appropriate degree of these modifications. Any such modifications may be approved by city council as part of the density bonus application and operating agreement.
H. 
A qualifying housing development located in the commercial zone that includes the consolidation of two or more parcels, each of which is less than one acre in size, into a single building site of one acre or larger, shall be entitled to a density bonus of five percent in addition to the applicable density bonus as provided in this section.
(Ord. 700 § 2 (Exh. 1), 2012; Ord. 709 § 9, 2014)
A. 
Concurrent with the submittal of an application for approval of site plan review or other development entitlements, the city council may grant a twenty percent density bonus and/or other incentives permitted pursuant to this chapter. An application is required to initiate the city’s review process for affordable housing projects, which shall be submitted in compliance with Chapter 17.04 PVEMC. An application for an affordable housing project shall be deemed complete when it contains all of the information requested by the planning director or his or her designee as provided on the affordable housing application form. Upon acceptance of the application as complete, the planning director or his or her designee shall review it for conformance with the applicable policies of the general plan and this chapter.
B. 
The planning director shall schedule the application submitted pursuant to this chapter for consideration concurrently with the consideration of the site plan or any other applicable development entitlement. If no entitlement application is scheduled to be heard by the planning commission, the planning director shall schedule the application to be considered at the next regularly scheduled planning commission meeting for which it is practical to provide the required notice.
C. 
The planning commission shall recommend to the city council that it approve, conditionally approve, or deny the application. The planning commission shall adopt a resolution containing its findings and determination pursuant to PVEMC § 18.68.060. If the application is recommended for approval, the resolution shall include the conditions and limitations imposed.
D. 
After the planning commission has made a determination, the affordable housing project shall be scheduled for a public hearing before the city council, which shall approve, deny or conditionally approve the application. The city council determination shall be final.
(Ord. 700 § 2 (Exh. 1), 2012)
A. 
Applicants requesting a density bonus or other incentives shall agree to enter into an operating agreement with the city. An operating agreement shall be made a condition of the discretionary development entitlement approvals and all building permits for all affordable housing projects undertaken pursuant to this chapter.
B. 
The terms of the draft agreement shall be reviewed and revised as appropriate by the planning director and city attorney. The planning director shall make a recommendation to the planning commission for review and issuance of a recommendation to city council. City council is responsible for a final determination on the agreement.
C. 
The agreement shall be recorded as a restriction on the parcel or parcels on which the target units will be constructed and shall be binding to all future owners and successors in interest.
D. 
All operating agreements prepared and executed pursuant to this section shall include at least the following:
1. 
The total number of units approved for the affordable 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;
5. 
Schedule for completion and occupancy of target units;
6. 
Description of the additional incentive(s) or financial assistance being provided by the city;
7. 
A description of the remedies for breach of the agreement by either party;
8. 
A covenant that the target units shall be reserved as affordable or for qualifying residents for a period of no less than thirty years; and
9. 
Other provisions to ensure implementation and compliance with this chapter.
E. 
In the case of for-sale housing developments, the operating agreement shall provide for the following conditions governing the initial sale and use of target units during the use restriction period:
1. 
Target units shall, upon initial sale, or subsequent sale within the use restriction period, be sold to eligible very low or low income households at an affordable sales price and housing cost, or be maintained as a senior citizen housing development. Target units that are part of a common interest development may be sold to moderate income households at an affordable sales price and housing cost.
2. 
Target units shall be owner-occupied by eligible very low or low income households during the use restriction period or by qualified residents in the case of a senior citizen housing development. Target units that are part of a common interest development may be occupied by moderate income households.
3. 
The initial purchaser of each target unit shall execute an agreement approved by the city restricting the sale of the target unit in accordance with this chapter during the applicable use restriction period. Such agreement shall be recorded against the parcel containing the target unit and shall contain such provisions as the planning director may require to ensure continued compliance with this chapter and the state’s density bonus law.
F. 
In the case of rental housing developments, the operating 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 maintaining target units for qualified tenants.
2. 
Provisions requiring owners to verify tenant incomes, when applicable, and maintain books and records to demonstrate compliance with this chapter.
3. 
Provisions requiring owners to submit an annual report to the city, which includes the name, address, and income, when applicable, of each person occupying target units, and which identifies the bedroom size and monthly rent of each target unit.
(Ord. 700 § 2 (Exh. 1), 2012)
A. 
To approve an affordable housing project, the city council shall make all of the following findings:
1. 
That the applicant has submitted evidence that the proposed modifications to the development standards are necessary to accommodate the proposed density;
2. 
That the site for the intended use is adequate in size and shape to accommodate the use;
3. 
That the site for the proposed use relates to the streets and highways properly designed to carry the type and quantity of traffic generated by the proposed use;
4. 
That the proposed use will not impair the integrity and character of the zoning district in which it is located, or otherwise have an adverse effect on adjacent property or the permitted use thereof;
5. 
That the proposed use is not contrary to the general plan;
6. 
That the proposed use will not endanger or otherwise constitute a menace to the public health, safety or general welfare; and
7. 
That the proposed project is financially feasible.
B. 
To deny an affordable housing project, the city council shall make at least one of the following findings:
1. 
The affordable housing development project is not needed for the city to meet its share of the regional housing need of very low or low income housing.
2. 
The affordable housing development project would have a specific adverse impact upon public health or safety and there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact without rendering the development unaffordable to very low and low income households.
3. 
There is no feasible way to comply with state or federal requirements without rendering the development unaffordable to very low, low or moderate income households.
4. 
Approval of the affordable housing development project would increase the concentration of very low and low income households in a neighborhood that already has a disproportionately high number of very low and low income households.
5. 
The project is not consistent with the land use designation for the subject site as set forth in the general plan.
C. 
In reviewing an application for an operating agreement, the planning commission shall recommend, and the city council shall impose, such conditions deemed necessary to ensure that the requested use will be in accordance with the findings required by this section. The conditions imposed on the affordable housing development project may involve any pertinent factors affecting the establishment, operation and maintenance of the requested use, including without limitation:
1. 
Special setbacks, open space, and buffer areas;
2. 
Fences and walls;
3. 
Lighting;
4. 
Parking facilities, including vehicular ingress and egress, the surfacing of parking areas and driveways, and pedestrian circulation;
5. 
On-site and off-site street, sidewalk, or utility improvements;
6. 
Dedication of right-of-way or easements or access rights;
7. 
Regulation of nuisance factors, such as noise, vibration, odors, dust, dirt, gases, etc.;
8. 
Landscaping and maintenance thereof;
9. 
Maintenance of the grounds and/or signs;
10. 
Modification or limitation to activities, including times and types of operation, and use of area on the site;
11. 
Such other conditions that may be necessary to address unusual site conditions and/or to ensure that the requested use is developed in an orderly and efficient manner and in general accord with the elements of the general plan and purpose of this chapter.
(Ord. 700 § 2 (Exh. 1), 2012)