Chapter 18.20A
DENSITY BONUSES
Sections:
18.20A.030 General provisions.
18.20A.040 Equity-sharing agreements.
18.20A.050 Incentives and concessions.
18.20A.060 Calculation of density bonus.
18.20A.070 Donation of land density bonus.
18.20A.080 Child care facility density bonus.
18.20A.090 Waiver or reduction of development standards.
18.20A.100 Projects with existing affordable housing.
18.20A.110 City’s discretion in granting density bonus.
18.20A.120 Parking requirements.
18.20A.010 Purpose.
As required by Cal. Gov’t Code § 65915 et seq., this chapter offers density bonuses and incentives or concessions for the development of housing that is affordable to the types of households and qualifying residents identified in this chapter. This chapter is intended to implement the requirements of Cal. Gov’t Code § 65915 et seq. and to increase the supply of affordable housing in the City. [Ord. 15-012 § 2.]
18.20A.020 Definitions.
For purposes of this chapter, the following definitions apply:
“Affordable housing cost” has the definition set forth in Cal. Health & Safety Code § 50052.5.
“Affordable rent” has the definition set forth in Cal. Health & Safety Code § 50053.
“Child care facility” means a facility other than a family day care home, including but not limited to infant centers, preschools, extended day care facilities, and school age child care centers.
“Common interest development” has the definition set forth in Cal. Civ. Code § 1351.
“Concession” or “incentive” means any of the following:
1. A reduction in site development standards or a modification of zoning code requirements or architectural design requirements that exceed the minimum building standards approved by the California Building Standards Commission, as provided in Part 2.5 (the State Building Code commencing with Cal. Health & Safety Code § 18901) of Division 13 of the Cal. Health & Safety Code, including but not limited to a reduction in setback and square footage requirements, and in the ratio of vehicular parking spaces that would otherwise be required, that results in identifiable, financially sufficient, and actual cost reductions.
2. Approval of mixed use zoning in conjunction with a housing project, if commercial, office, industrial or other land uses will reduce the cost of a housing development, and if the commercial, office, industrial or other land uses are compatible with the housing project and the existing or planned development in the area where the proposed housing project will be located.
3. Other regulatory incentives or concessions proposed by the applicant or the City that result in identifiable, financially sufficient and actual cost reductions.
This definition does not limit or require the provision of direct financial incentives for a housing development, including the provision of publicly owned land, by the City or the waiver of fees or dedication requirements.
“Density bonus” means a density increase over the otherwise maximum allowable residential density under the applicable zoning code provisions and the land use element of the general plan as of the date of application by the applicant to the City.
“Development standard” means the site or construction conditions that apply to a residential development pursuant to any ordinance, general plan element, specific plan, or other City condition, law, policy, resolution or regulation.
“Housing development” means a development project for five (5) or more residential units. “Housing development” also includes a subdivision or common interest development, or the substantial rehabilitation of an existing multifamily dwelling where the result of the rehabilitation would be a net increase in the number of residential units.
“Lower income households” has the definition set forth in Cal. Health & Safety Code § 50079.5.
“Maximum allowable residential density” means the density allowed under the zoning code, or if a range of density is permitted, the maximum allowable density for the specific zoning range applicable to the project.
“Moderate income households” has the definition for “persons or families of moderate income” set forth in Cal. Health & Safety Code § 50093(b).
“Multifamily dwelling” has the definition set forth in Cal. Gov’t Code § 65863.4(d).
“Senior citizen housing development” has the definition set forth in Cal. Civ. Code § 51.3.
“Specific, adverse impact” has the definition set forth in Cal. Gov’t Code § 65589.5(d)(2).
“Very low income households” has the definition set forth in Cal. Health & Safety Code § 50105. [Ord. 15-012 § 2.]
18.20A.030 General provisions.
A. Application. Any person that desires a density bonus must make an application on a form approved by the Community Development Director at the time of submitting an entitlement application for the housing development for which a density bonus is requested. The density bonus provided by this chapter only applies to housing developments consisting of five (5) or more dwelling units.
B. Incentives and Concessions. When an applicant seeks a density bonus for a housing development or for the donation of land for housing within the City, the City must provide the applicant incentives or concessions for the production of housing units and child care facilities as provided in this chapter.
C. Qualifying Projects. The City will grant one (1) density bonus, the amount of which will be as specified in DMC 18.20A.060, and incentives or concessions as described in DMC 18.20A.050, when an applicant for a housing development seeks and agrees to construct a housing development, excluding any units permitted by the density bonus awarded pursuant to this chapter, that will contain at least one (1) of the following:
1. Ten percent (10%) of the total units of a housing development for lower income households.
2. Five percent (5%) of the total units of a housing development for very low income households.
3. Ten percent (10%) of the total dwelling units in a common interest development for moderate income households; provided, that all units in the housing development are offered to the public for purchase.
4. A senior citizen housing development.
As used in this subsection, “total units” or “total dwelling units” does not include units permitted by a density bonus awarded pursuant to this chapter.
D. Applicant’s Election of Basis for Bonus. For purposes of calculating the amount of the density bonus pursuant to DMC 18.20A.060, the applicant who requests a density bonus pursuant to this section must elect whether the bonus will be awarded on the basis of subsections (C)(1), (2), (3) or (4) of this section.
E. Continued Affordability.
1. An applicant must agree to the continued affordability of all lower and very low income rental units that qualified the applicant for the award of the density bonus for fifty-five (55) years or a longer period of time if required by any applicable construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy program. Rents for the lower income density bonus units must be set at an affordable rent.
2. An applicant must agree that the initial occupant of all for-sale units that are directly related to the receipt of the density bonus are very low, lower, or moderate income households and that the units are offered at an affordable housing cost. Upon resale, the seller of the unit shall comply with DMC 18.20A.040. [Ord. 15-012 § 2.]
18.20A.040 Equity-sharing agreements.
The following provisions must be included in any equity-sharing agreement required under this chapter:
A. Upon resale, the seller of the unit may retain the value of any improvements, the down payment, and the seller’s proportionate share of appreciation. The City will recapture any initial subsidy and its proportionate share of appreciation, which amount must then be used within five (5) years for any of the purposes that promote home ownership, as described in Cal. Health & Safety Code § 33334.2(e).
B. For purposes of this section, the City’s initial subsidy will be equal to the fair market value of the home at the time of 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 the resale will be used as the initial market value.
C. For purposes of this section, the City’s proportionate share of appreciation will be equal to the ratio of the initial subsidy to the fair market value of the unit at the time of initial sale. [Ord. 15-012 § 2.]
18.20A.050 Incentives and concessions.
A. An applicant for a density bonus pursuant to this chapter may submit a proposal for the specific incentives or concessions that the applicant requests pursuant to this chapter, and may request a meeting with the Community Development Director.
B. Subject to subsection C of this section, the applicant will receive the following number of incentives or concessions:
1. One (1) incentive or concession for projects that include at least ten percent (10%) of the total units for lower income households, at least five percent (5%) for very low income households, or at least ten percent (10%) for moderate income households in a common interest development.
2. Two (2) incentives or concessions for projects that include at least twenty percent (20%) of the total units for lower income households, at least ten percent (10%) for very low income households, or at least twenty percent (20%) for moderate income households in a common development.
3. Three (3) incentives or concessions for projects that include at least thirty percent (30%) of the total units for lower income households, at least fifteen percent (15%) for very low income households, or at least thirty percent (30%) for moderate income households in a common interest development.
C. The City must grant the concession or incentive requested by the applicant, unless it makes a written finding, based upon substantial evidence, that:
1. The concession or incentive is not required in order to provide for affordable housing costs, or for rents for the targeted units to be set as specified in DMC 18.20A.030(E);
2. The concession or incentive would have a specific, adverse impact upon public health and safety, or the physical environment, or on any real property listed in the California Register of Historical Resources, and 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; or
3. The concession or improvement would be contrary to State or Federal law. [Ord. 15-012 § 2.]
18.20A.060 Calculation of density bonus.
The amount of density bonus to which the applicant is entitled shall be based on the category and percentage of affordable units proposed, as reflected in the following tables. The applicant may elect to accept a lesser percentage of a density bonus. These calculations are based on provisions of Cal. Gov’t Code § 65915 et seq. and are subject to any subsequent amendments or revisions thereto.
A. Lower Income Units. For housing developments providing at least ten percent (10%) of the total dwelling units for lower income households, the density bonus will be calculated as follows:
|
Percentage Lower Income Units |
Percentage Density Bonus |
|---|---|
|
10 |
20 |
|
11 |
21.5 |
|
12 |
23 |
|
13 |
24.5 |
|
14 |
26 |
|
15 |
27.5 |
|
17 |
30.5 |
|
18 |
32 |
|
19 |
33.5 |
|
20 |
35 |
B. Very Low Income Units. For housing developments providing at least five percent (5%) of the total dwelling units for very low income households, the density bonus will be calculated as follows:
|
Percentage Very Low Income Units |
Percentage Density Bonus |
|---|---|
|
5 |
20 |
|
6 |
22.5 |
|
7 |
25 |
|
8 |
27.5 |
|
9 |
30 |
|
10 |
32.5 |
|
11 |
35 |
C. Senior Citizen Housing. For housing developments meeting the criteria of a senior housing development as set forth in Cal. Civ. Code § 51.3, the density bonus will be twenty percent (20%) of the total number of senior housing units.
D. Moderate Income Units. For housing developments that provide at least ten percent (10%) of the total dwelling units in a common interest development for moderate income households, the density bonus will be calculated as follows:
|
Percentage Moderate Income Units |
Percentage Density Bonus |
|---|---|
|
10 |
5 |
|
11 |
6 |
|
12 |
7 |
|
13 |
8 |
|
14 |
9 |
|
15 |
10 |
|
16 |
11 |
|
17 |
12 |
|
18 |
13 |
|
19 |
14 |
|
20 |
15 |
|
21 |
16 |
|
22 |
17 |
|
23 |
18 |
|
24 |
19 |
|
25 |
20 |
|
26 |
21 |
|
27 |
22 |
|
28 |
23 |
|
29 |
24 |
|
30 |
25 |
|
31 |
26 |
|
32 |
27 |
|
33 |
28 |
|
34 |
29 |
|
35 |
30 |
|
36 |
31 |
|
37 |
32 |
|
38 |
33 |
|
39 |
34 |
|
40 |
35 |
E. Condominium Conversions. When a development is the conversion of an existing apartment complex to a condominium complex and the applicant agrees to make at least thirty-three percent (33%) of the total units of the proposed condominium project affordable to low or moderate income households for fifty-five (55) years, or fifteen percent (15%) of the total units of the proposed development affordable to lower income households for fifty-five (55) years, and agrees to pay for the administrative costs incurred by the City to process the application and to monitor the continued affordability and habitability of the affordable housing units, the City shall either grant a density bonus of twenty-five percent (25%) or provide other incentives of equivalent financial value as determined by the City.
1. Nothing in this section shall be construed to require the City to approve a proposal to convert apartments to condominiums.
2. An applicant shall be ineligible for a density bonus or other incentives under this chapter if the apartments proposed for conversion are in a development for which a density bonus or other incentives were previously provided under this chapter.
F. All density calculations resulting in fractional units will be rounded up to the next whole number. The granting of a density bonus will not be interpreted, in and of itself, to require a general plan amendment, zoning change or other discretionary approval. [Ord. 15-012 § 2.]
18.20A.070 Donation of land density bonus.
When an applicant for a tentative subdivision map, parcel map, or other residential development approval provides at least ten percent (10%) of the total dwelling units for very low income households and donates land to the City, as provided for in this section, the applicant will be entitled to a fifteen percent (15%) increase above the otherwise maximum allowable residential density under the applicable zoning and the land use element of the general plan for the entire development, as follows:
|
Percentage Very Low Income |
Percentage Density Bonus |
|---|---|
|
10 |
15 |
|
11 |
16 |
|
12 |
17 |
|
13 |
18 |
|
14 |
19 |
|
15 |
20 |
|
16 |
21 |
|
17 |
22 |
|
18 |
23 |
|
19 |
24 |
|
20 |
25 |
|
21 |
26 |
|
22 |
27 |
|
23 |
28 |
|
24 |
29 |
|
25 |
30 |
|
26 |
31 |
|
27 |
32 |
|
28 |
33 |
|
29 |
34 |
|
30 |
35 |
A. This increase will be in addition to any increase in density mandated by DMC 18.20A.030(C), up to a maximum combined density increase of thirty-five percent (35%), if an applicant seeks increases required pursuant to both this section and DMC 18.20A.030(C).
1. All density calculations resulting in fractional units will be rounded up to the next whole number.
2. Nothing in this section will be construed to enlarge or diminish the authority of the City to require a developer to donate land as a condition of development.
B. An applicant will be eligible for the increased density bonus described in this section if all of the following conditions are met:
1. The applicant donates and transfers the land no later than the date of approval of the final subdivision map or parcel map or residential development application.
2. The developable acreage and zoning classification of the land being transferred are sufficient to permit construction of units affordable to very low income households, in an amount not less than ten percent (10%) of the number of residential units of the proposed development.
3. The transferred land is at least one (1) acre in size or of sufficient size to permit development of at least forty (40) units, has the appropriate general plan designation, is appropriately zoned for development as affordable housing, and is or will be served by adequate public facilities and infrastructure.
a. The land must have appropriate zoning and development standards to make the development of the affordable units feasible.
b. No later than the date of approval of the final subdivision map, parcel map, or of the residential development, the transferred land must have all of the permits and approvals, other than building permits, necessary for the development of the very low income housing units on the transferred land, except that the local government may subject the proposed development to subsequent design review, to the extent authorized by Cal. Gov’t Code § 65583.2(i), if the design is not reviewed by the City prior to the time of transfer.
4. The transferred land and the affordable units will be subject to a deed restriction ensuring continued affordability of the units consistent with DMC 18.20A.030(E), which restriction will be recorded on the property at the time of the transfer.
5. The land is transferred to the City or to a housing developer approved by the City. The City may require the applicant to identify and transfer the land to such housing developer.
6. The transferred land must be within the boundary of the proposed development or, if the City agrees, within one-quarter (0.25) mile of the boundary of the proposed development. [Ord. 15-012 § 2.]
18.20A.080 Child care facility density bonus.
A. When an applicant proposes to construct a housing development that conforms to the requirements of DMC 18.20A.030(C) and includes a child care facility that will be located on the premises of, as part of, or adjacent to, the project, the City must 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 concession or incentive that contributes significantly to the economic feasibility of the construction of the child care facility.
B. The City will require, as a condition of approving the housing development, that the following occur:
1. The child care facility must 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 DMC 18.20A.030(E).
2. Of the children who attend the child care facility, the children of very low income households, lower income households, or moderate income households must 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 moderate income households pursuant to DMC 18.20A.030(C).
C. Notwithstanding any requirement of this section, the City is not required to provide a density bonus or concession for a child care facility if it finds, based upon substantial evidence, that the community has adequate child care facilities.
D. For the purpose of calculating a density bonus, the residential units do not have to be based upon individual subdivision maps or parcels. The density bonus is permitted in geographic areas of the housing development other than the areas where the units for the lower income households are located.
E. The granting of a concession or incentive will not be interpreted, in and of itself, to require a general plan amendment, zoning change, or other discretionary approval. [Ord. 15-012 § 2.]
18.20A.090 Waiver or reduction of development standards.
A. An applicant may submit to the City a proposal for the waiver or reduction of development standards that the applicant believes will have the effect of physically precluding the construction of a housing development that meets the criteria of DMC 18.20A.030(C) at the densities or with the concessions or incentives permitted by this chapter, and may request a meeting with the Community Development Director. Such proposal may not increase the number of incentives or concessions that the applicant is entitled to under DMC 18.20A.050.
B. The City must waive or reduce the development standard requested by the applicant, unless it makes a written finding, based upon substantial evidence, that:
1. The waiver or reduction would have a specific, adverse impact upon public health and safety, or the physical environment, or on any real property listed in the California Register of Historical Resources, and there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact; or
2. The waiver or reduction would be contrary to state or federal law. [Ord. 15-012 § 2.]
18.20A.100 Projects with existing affordable housing.
A. An applicant shall be ineligible for a density bonus or any other incentives or concessions under this chapter if the housing development is proposed on any property that includes a parcel or parcels on which the following applies to the rental dwelling units unless subsection B of this section also applies:
1. 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;
2. Have been subject to any other form of rent or price control through a public entity’s valid exercise of its police power; or
3. Occupied by lower or very low income households.
B. Subsection A of this section does not apply if the dwelling units have been vacated or demolished in the five (5) year period preceding the application or 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 subsection, contains affordable units at the percentages set forth in DMC 18.20A.030(C).
2. Each unit in the development, exclusive of a manager’s unit or units, is affordable to, and occupied by, either a lower or very low income household.
C. For the purposes of this section, “replace” shall mean either of the following:
1. If any dwelling units described in subsection A of this section are occupied on the date of application, the proposed housing development shall provide at least the same number of units of equivalent size or type, or both, to be made available at affordable rent or affordable housing cost to, and occupied by, persons and families in the same or lower income category as those households in occupancy. For unoccupied dwelling units described in subsection A of this section in a development with occupied units, the proposed housing development shall provide units of equivalent size or type, or both, to be made available at affordable rent or affordable housing cost to, and occupied by, persons and families in the same or lower income category in the same proportion of affordability as the occupied units. All replacement calculations resulting in fractional units shall be rounded up to the next whole number. If the replacement units will be rental dwelling units, these units shall be subject to a recorded affordability restriction for at least fifty-five (55) years. If the proposed development is for-sale units, the units replaced shall be subject to DMC 18.20A.030(E)(2).
2. If all dwelling units described in subsection A of this section have been vacated or demolished within the five (5) year period preceding the application, the proposed housing development shall provide at least the same number of units of equivalent size or type, or both, as existed at the highpoint of those units in the five (5) year period preceding the application to be made available at affordable rent or affordable housing cost to, and occupied by, persons and families in the same or lower income category as those persons and families in occupancy at that time, if known. If the incomes of the persons and families in occupancy at the highpoint are not known, then one-half (0.5) of the required units shall be made available at affordable rent or affordable housing cost to, and occupied by, very low income persons and families and one-half (0.5) of the required units shall be made available for rent at affordable housing costs to, and occupied by, low income persons and families. All replacement calculations resulting in fractional units shall be rounded up to the next whole number. If the replacement units will be rental dwelling units, these units shall be subject to a recorded affordability restriction for at least fifty-five (55) years. If the proposed development is for-sale units, the units replaced shall be subject to DMC 18.20A.030(E)(2).
D. This section does not apply to an applicant seeking a density bonus for a proposed housing development if their application was submitted to, or processed by, a city, county, or city and county before January 1, 2015. [Ord. 15-012 § 2.]
18.20A.110 City’s discretion in granting density bonus.
Nothing in this chapter will be construed to prohibit the City from granting a density bonus greater than what is described in this chapter for a development that meets the requirements of this chapter, or from granting a proportionately lower density bonus than what is required by this chapter for developments that do not meet the requirements of this chapter. [Ord. 15-012 § 2.]
18.20A.120 Parking requirements.
A. Upon the request of the applicant, the City will not require a vehicular parking ratio, inclusive of handicapped and guest parking, of a development meeting the criteria of DMC 18.20A.030(C), that exceeds the following ratios:
1. Zero (0) to one (1) bedrooms: one (1) on-site parking space.
2. Two (2) to three (3) bedrooms: two (2) on-site parking spaces.
3. Four (4) and more bedrooms: two and one-half (2.5) parking spaces.
B. If the total number of parking spaces required for a development is other than a whole number, the number will be rounded up to the next whole number. For purposes of this section, a development may provide on-site parking through tandem parking or uncovered parking, but not through on-street parking.
C. This section applies to a development that meets the requirements of DMC 18.20A.030(C), but only at the request of the applicant. An applicant may request additional parking incentives or concessions beyond those provided in this chapter, subject to DMC 18.20A.050. [Ord. 15-012 § 2.]