Chapter 5.14
RESIDENTIAL DENSITY BONUS PROVISIONS

Sections:

5.14.010    Intent and purpose.

5.14.020    Definitions.

5.14.030    Types of bonuses and incentives allowed.

5.14.040    Additional density bonus for donations of land.

5.14.050    General provisions governing density bonus calculations.

5.14.060    Incentives and concessions for affordable housing.

5.14.070    Waivers and modifications of development standards.

5.14.080    Parking incentives.

5.14.090    Standards for density bonus housing developments.

5.14.100    Application requirements.

5.14.110    Application review.

5.14.120    Developer affordable housing agreement.

Prior legislation: Ord. 97-17.

5.14.010 Intent and purpose.

This chapter is being enacted: (A) to provide incentives for the production of housing for very low income, low income, moderate income and senior citizen households; (B) to provide incentives for the creation of rental housing serving lower and moderate income households; and (C) to implement Sections 65915, 65915.5, and 65917 of the California Government Code as required by Section 65915(a). In enacting this chapter, the City also intends to implement the goals, objectives, and policies of the City’s general plan housing element to encourage the construction of affordable housing in the City. It is also the City’s intent to encourage the development of rental housing to serve an economically diverse community. Accordingly, the City desires to provide a density bonus upon the request of an applicant when the applicant includes affordable or senior citizen restricted units in a project. This chapter implements the laws for density bonuses and other incentive and concessions available to qualified applicants under Government Code Sections 65915 through 65918. In the event these Government Code sections are amended, those amended provisions shall be incorporated into this chapter as if fully set forth herein. (Ord. 2016-3 § 9, 7-12-2016)

5.14.020 Definitions.

For purposes of this chapter, the following definitions shall apply. Unless specifically defined below, words or phrases shall be interpreted as to give this chapter its most reasonable interpretation.

A. “Affordable ownership cost” means the average annual housing costs, including mortgage payments, property taxes, homeowner’s insurance, and homeowners’ association dues, if any, which do not exceed the following:

1. Very low income households: 50 percent of area median income, adjusted for assumed household size based on unit size, multiplied by 30 percent.

2. Lower income households: 70 percent of area median income, adjusted for assumed household size based on unit size, multiplied by 30 percent.

3. Moderate income households: 110 percent of area median income, adjusted for assumed household size based on unit size, multiplied by 35 percent.

B. “Affordable rent” means the annual rent, including utilities and all fees for housing services, which does not exceed the following:

1. Very low income households: 50 percent of area median income, adjusted for assumed household size based on unit size, multiplied by 30 percent.

2. Lower income households: 60 percent of area median income, adjusted for assumed household size based on unit size, multiplied by 30 percent.

C. “Affordable units” means dwelling units that are affordable to very low, lower, or moderate income households as defined by this chapter or by any Federal or State housing program and are subject to rental, sale, or resale restrictions to maintain affordability.

D. “Applicant” means a developer or organization applying for a density bonus who seeks and agrees to construct a qualified housing development on or after the effective date of this chapter pursuant to Section 65915, subdivision (b), of the California Government Code.

E. “Area median income” means the median income for Stanislaus County as published by the State of California pursuant to California Code of Regulations, Title 25, Section 6932, or a successor provision.

F. “Assumed household size based on unit size” means a household of one person in a studio apartment, two persons in a one-bedroom unit, three persons in a two-bedroom unit, and one additional person for each additional bedroom thereafter.

G. “Common interest development” means, as defined in Section 4100 of the California Civil Code, a common interest development may include a community apartment project, a condominium project, a planned development, or a stock cooperative.

H. “Density bonus” means a density increase over the otherwise allowable zoning maximum residential density on a site as of the date of application by the applicant to the City, granted pursuant to this chapter.

I. “Density bonus units” means dwelling units granted pursuant to this chapter which exceed the otherwise allowable zoning maximum residential density for a housing development.

J. “Household income” means the combined adjusted gross household income for all adult persons living in a dwelling unit as calculated for the purpose of the Section 8 program under the United States Housing Act of 1937, as amended, or its successor provision.

K. “Very low income household” means, as defined in California Health and Safety Code Section 50105, very low income persons and families are those whose incomes do not exceed the qualifying limits for very low income families as established and amended from time to time pursuant to Section 8 of the United States Housing Act of 1937 which is 50 percent of area median income, adjusted for family size and revised annually.

L. “Lower income household” means, as defined in California Health and Safety Code Section 50079.5, lower income persons and families are those whose incomes do not exceed the qualifying limits for low income families as established and amended from time to time pursuant to Section 8 of the United States Housing Act of 1937 which is 70 percent of area median income, adjusted for family size and revised annually.

M. “Moderate income household” means persons and families whose income does not exceed 120 percent of area median income, adjusted for family size by the Department in accordance with adjustment factors adopted and amended from time to time by the United States Department of Housing and Urban Development pursuant to Section 8 of the United States Housing Act of 1937.

N. “Housing development” means one or more groups of projects to construct dwelling units in the planned development of the City. Housing development also includes a subdivision or common interest development, as defined in Section 1351 of the California Civil Code, approved by the City and consisting of dwelling units or unimproved residential lots and either a project to substantially rehabilitate and convert an existing commercial building to residential use or the substantial rehabilitation of an existing multifamily dwelling, as defined in subdivision (d) of Section 65863.4, where the result of the rehabilitation would be a net increase in available dwelling units. 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.

O. “Incentive and concessions” means regulatory concessions as listed in NCC 5.14.060.

P. “Market rate unit” means a dwelling unit which is not an affordable unit or an inclusionary unit.

Q. “Maximum residential density” means the maximum number of dwelling units permitted by the Zoning Code and Land Use element of the general plan or, if a range of density is permitted, means the maximum allowable density for the specific zoning range and community development element of the general plan applicable to the project. Where the density allowed under the zoning ordinance is inconsistent with the density allowed under the community development element of the general plan, the general plan density shall prevail. The maximum allowable density is based on the date an application for a housing development is deemed complete. This definition is used to calculate a density bonus pursuant to this chapter.

R. “Senior citizen housing development” means senior citizen housing as defined in Section 51.3 (a housing development developed, substantially rehabilitated, or substantially renovated for senior citizens that has at least 35 dwelling units) and Section 51.12 of the California Civil Code, or a mobile home park that limits residency based on age requirements for housing for older persons pursuant to Section 798.76 or 799.5 of the Civil Code.

S. “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. Mere inconsistency with the zoning ordinance or general plan land use designation shall not constitute a specific, adverse impact upon the public health or safety. (Ord. 2016-3 § 9, 7-12-2016)

5.14.030 Types of bonuses and incentives allowed.

A. Very Low and Lower Income Housing and Senior Citizen Housing. Upon written request to the City, an applicant for a housing development is eligible for one density bonus of 20 percent over the maximum residential density (except in the case of senior citizen housing, as provided below); provided, that the applicant agrees to construct the housing development in accordance with one of the following criteria:

1. Very Low Income Households. Five percent of the total dwelling units, excluding any units permitted by the density bonus, are provided at affordable rent or ownership costs to very low income households; or

2. Lower Income Households. Ten percent of the total dwelling units, excluding any units permitted by the density bonus, are provided at affordable rent or ownership costs to lower income households; or

3. Senior Citizen Housing Developments. For senior citizen housing developments, the density bonus shall be 20 percent of the number of senior housing units provided.

B. Moderate Income Housing. Upon written request to the City, an applicant for a housing development is eligible for one density bonus of five percent over the maximum residential density if the applicant agrees to construct the housing development in accordance with all of the following criteria:

1. At least 10 percent of the total dwelling units, excluding any units permitted by the density bonus, are provided at affordable ownership costs to moderate income households; and

2. The housing development is a common interest project as defined by Section 1351 of the California Civil Code; and

3. All of the dwelling units in the housing development are offered for sale to the public.

C. Higher Density Bonus for Greater Contribution of Affordable Units. Upon written request to the City, an applicant for a housing development that is eligible for a density bonus based upon the contribution of affordable units, may receive a higher amount of density bonus if the percentage of very low, lower, and moderate income housing units exceeds the base percentage established in subsection (A) or (B) of this section, as follows:

1. Very Low Income Units. For each one percent increase above five percent in affordable units for very low income households, the density bonus shall be increased by two and one-half percent up to a maximum of 35 percent, as follows:

Table 1: Very Low Income Units

Percentage of Very Low Income Units

Percentage of Density Bonus

5

20.0

6

22.5

7

25.0

8

27.5

9

30.0

10

32.5

11

35.0

2. Lower Income Units. For each one percent increase above 10 percent in the affordable units for lower income households, the density bonus shall be increased by one and one-half percent up to a maximum of 35 percent, as shown in Table 2:

Table 2: Lower Income Units

Percentage of Lower Income Units

Percentage of Density Bonus

10

20.0

11

21.5

12

23.0

13

24.5

14

26.0

15

27.5

16

29.0

17

30.5

18

32.0

19

33.5

20

35.0

3. Moderate Income Units. For each one percent increase above 10 percent in affordable units offered for sale to moderate income households, the density bonus shall be increased by one percent up to maximum 35 percent, as shown in Table 3:

Table 3: Moderate Income Units

Percentage of Moderate Income Units

Percentage of 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

D. Continued Affordability. Affordable units qualifying a housing development for a density bonus shall remain affordable as follows:

1. Very low income and low income household units shall remain affordable to the designated income group for a minimum of 30 years, or for a longer period of time if required by any construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy program applicable to the dwelling units.

2. Moderate income household units shall remain affordable for a minimum of 30 years, or for a longer period of time if required by any construction or mortgage financing assistance program, mortgage insurance program applicable to the dwelling units.

3. Notwithstanding the foregoing, very low, low, and moderate income units in housing developments qualified for a density bonus that are located in or found by the redevelopment agency to benefit a redevelopment project area shall remain at an affordable level for a period of not less than 45 years for owner occupied units, and not less than 55 years for rental units, in accordance with applicable provisions of the California community redevelopment law (Health and Safety Code Section 33000 et seq.). Upon resale, the City shall enforce an equity sharing agreement, unless it is in conflict with the requirements of another public funding source or law. The equity sharing agreement shall include the following provisions:

a. Upon resale, the seller of the unit shall retain the value of any improvements, the down payment, and the seller’s proportionate share of appreciation. The City shall recapture any initial subsidy as defined in subsection (D)(3)(b) of this section, and its proportionate share of appreciation, as defined in subsection (D)(3)(c) of this section, which amount shall be used within five years for any of the purposes described in Health and Safety Code Section 33334.2(e).

b. 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 the resale shall be used as the initial market value.

c. 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 initial sale.

E. Specification of Basis for Density Bonus. Each applicant who requests a density bonus pursuant to this section shall elect whether the bonus will be awarded on the basis of subsection (A)(1), (2) or (3) or (B) of this section. Each housing development is entitled to only one density bonus, which may be selected based on the percentage of either very low income affordable housing units, lower income affordable housing units or moderate income affordable housing units, or the development’s status as a senior citizen housing development. Density bonuses from more than one of these categories may not be combined. (Ord. 2016-3 § 9, 7-12-2016)

5.14.040 Additional density bonus for donations of land.

A. Land Suitability. Upon written request, when an applicant for a tentative map, subdivision map, parcel map, or other residential development approval qualified for a density bonus pursuant to NCC 5.14.030 also donates land to the City in accordance with this section, the applicant shall be entitled to an additional density bonus. Applicants donating land to the City shall be eligible for an additional 15 percent density bonus at the site of the housing development if the donated land is suitable for the construction of very low income units equaling at least 10 percent of the market rate units being constructed for the project. The density bonus provided pursuant to this section shall be in addition to any density bonus granted pursuant to NCC 5.14.030, up to a maximum combined density bonus of 35 percent.

B. Qualification Criteria. To qualify for the additional density bonus described in subsection (A) of this section, the donation of land must meet all of the following criteria:

1. The tentative map, subdivision map, parcel map, or other residential development must otherwise be subject to a density bonus pursuant to NCC 5.14.030; and

2. The land must be transferred no later than the date of the approval of the final subdivision map, parcel map, or housing development application; and

3. The developable acreage and zoning classification of the land being transferred must be sufficient to permit construction of dwelling units affordable to very low income households in an amount not less than 10 percent of the total number of market rate dwelling units in the proposed development (i.e., the proposed development before the addition of any density bonus); and

4. The donated land is at least one acre in size or is large enough to permit development of at least 40 units, has the appropriate general plan land use designation, has the appropriate zoning and development standards for affordable housing and, at the time of project approval is, or at the time of construction will be, served by adequate public facilities and infrastructure; and

5. No later than the date of approval of the final map, parcel map, or other development application for the housing development, the donated land must have all of the applicable permits and approvals (other than building permits) necessary for the development of the very low income housing units on the donated land, except that the City may subject the proposed housing development to subsequent design review to the extent authorized by California Government Code Section 65583.2(i) if the design is not reviewed by the City prior to the time of transfer; and

6. The donated land is subject to a deed restriction ensuring continued affordability of the very low income units consistent with NCC 5.14.030(D), which deed restriction shall be recorded upon the donated property at the time of its transfer; and

7. The land will be transferred to the City, or to a housing developer approved by the City. The City reserves the right to require the applicant to identify a developer and to require that the land be transferred to that developer; and

8. The land is within the boundary of the proposed housing development or within one-fourth mile of the boundary of the proposed housing development; and

9. No later than the date of approval of the final map, parcel map, or other development application for the housing development, a proposed source of funding for the construction of the very low income units shall be identified.

C. Additional Density Bonus Based on Greater Suitability of Land for Very Low Income Housing. For each one percent increase above the minimum 10 percent in the number of very low income housing units that can be accommodated on the donated land, the maximum density bonus shall be increased by one percent, up to a maximum of 35 percent, as follows:

Table 4: Land Donation 

Percentage of Very Low Income Units That Can Be Accommodated on Donated Land

Percentage of Additional 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

(Ord. 2016-3 § 9, 7-12-2016)

5.14.050 General provisions governing density bonus calculations.

A. For the purposes of any provisions in this chapter, an applicant may elect to accept a lesser percentage of density bonus than that to which the housing development is eligible.

B. When calculating the number of permitted density bonus units, any calculations resulting in fractional units shall be rounded up to the next larger whole number.

C. 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 geographic areas of the housing development other than the areas where the affordable units are located.

D. For the purposes of this chapter, the “total units” or “total dwelling units” in a housing development does not include those units added by any density bonus.

Table 5: Density Bonus Summary

Types of Affordable Units Providing Eligibility for a Density Bonus

Minimum Percent

Bonus Granted

Additional Bonus for Each 1% Increase in Affordable Units

Percent of Affordable Units Required for Maximum 35% Bonus

Very Low Income

5%

20%

2.5%

11%

Lower Income

10%

20%

1.5%

20%

Moderate Income

10%

5%

1%

40%

Senior Citizen Housing

Qualified development

20% of the units

Land Donation for Very Low Income Housing

Land donated can accommodate 10% of market rate units, plus housing development qualified for density bonus as an affordable or senior project.

15%

1%

30% of market rate units (assuming housing development provides 5% very low income units)

(Ord. 2016-3 § 9, 7-12-2016)

5.14.060 Incentives and concessions for affordable housing.

A. Definition of a Qualified Incentive or Concession. A qualifying project shall be entitled to at least one but no more than three of the following incentives identified by State law:

1. A reduction in the parcel development standards (e.g., coverage, setback, zero lot line and/or reduced parcel sizes, architectural design requirements and/or parking requirements). Development standard means any ordinance, general plan element, specific plan, condition, law, policy, resolution, or regulation. In no case may the City apply a development standard that will have the effect of precluding the construction of affordable units. A waiver or modification to development standards may be requested by the applicant, and shall be approved unless such waiver or modification creates an adverse impact as described in subsection (A)(3) of this section.

2. Approval of mixed use zoning in conjunction with the housing project if nonresidential land uses will reduce the cost of the housing project, and the nonresidential land uses are compatible with the housing project and existing or planned development in the area where the proposed development will be located.

3. Other regulatory incentives or concessions proposed by the applicant or the City that will result in identifiable, financially sufficient and actual cost reductions.

B. Number of Incentives or Concessions. The number of incentives shall be based on the percentage of affordable units in the project:

1. One incentive or concession shall be entitled for projects where at least five percent of the total units are for very low income households, 10 percent of the total units are for lower income households, or 10 percent of the total units in a common interest development are sold to moderate income households.

2. Two incentives or concessions shall be entitled for projects where at least 10 percent of the total units are for very low income households, 20 percent of the total units are for lower income households, or at least 20 percent of the total units in a common interest development are sold to moderate income households.

3. Three incentives or concessions shall be entitled for projects where at least 15 percent of the total units are for very low income households, 30 percent of the total units are for lower income households, or 30 percent of the total units in a common interest development are sold to moderate income households.

Table 6: Incentives and Concessions Summary

Affordable Units or Category

Percent of Affordable Units

Affordable Housing Types:

 

 

 

Very Low Income

5%

10%

15%

Low Income

10%

20%

30%

Moderate Income

10%

20%

30%

Maximum Incentive(s)/Concession(s)1, 2, 3

1

2

3

Notes:

1 An incentive or concession may be requested only if an application is also made for a density bonus.

2 Incentives or concessions may be selected from only 1 category (very low, lower, or moderate).

3 No incentives or concessions are available for land donation.

C. Findings to Deny Incentive or Concession. The City shall grant the incentive or concession requested by the applicant unless the City makes a written finding based upon substantial evidence of any of the following:

1. The incentive or concession is not required in order to provide for affordable housing costs or for affordable rents for the restricted units; or

2. The concession or incentive 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 development unaffordable to low and moderate income households. A specific adverse impact means a significant, unavoidable impact, as provided in written standards, policies, or conditions; or

3. The incentive or concession would be contrary to State or Federal law.

D. Exceptions. This section does not limit or require the provision of direct financial incentives for the housing development, including the provision of publicly owned land, by the City or the waiver of fees or dedication requirements. Nor does any provision of this section require the City to grant an incentive or concession found to have a specific adverse impact.

E. Amendment, Zone Change. The granting of a concession or incentive shall not be interpreted, in and of itself, to require a general plan amendment, local coastal plan amendment, zoning change, or other discretionary approval. (Ord. 2016-3 § 9, 7-12-2016)

5.14.070 Waivers and modifications of development standards.

A. Applicants granted a density bonus pursuant to NCC 5.14.030 may, by written proposal, seek a waiver, modification or reduction of development standards that would otherwise have the effect of physically precluding the construction of the housing development at the densities or with the concessions or incentives permitted pursuant to this chapter. The applicant may also request a meeting with the City to discuss such request for waiver and modifications.

B. In order to obtain a waiver or modification of development standards, the applicant shall show that the development standards will have the effect of precluding the construction of a housing development meeting the criteria of NCC 5.14.030, at the densities or with the concessions or incentives permitted by this chapter.

C. A proposal for the waiver or reduction of development standards pursuant to this section shall neither reduce nor increase the number of incentives or concessions to which the applicant is entitled pursuant to NCC 5.14.060.

D. The City may deny a request for any waiver, modification or reduction of development standards if the waiver, modification or reduction would have a specific adverse impact. (Ord. 2016-3 § 9, 7-12-2016)

5.14.080 Parking incentives.

A. Upon the written request of the applicant for a housing development meeting the criteria for a density bonus under NCC 5.14.030, the City shall not require a vehicular parking ratio that exceeds the following:

1. Zero- to one-bedroom units: One on-site parking space.

2. Two- to three-bedroom units: Two on-site parking spaces.

3. Four- and more bedroom units: Two and one-half parking spaces.

B. Guest parking and handicapped parking shall be included within the maximum number of spaces that may be required. 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 section, a housing development may provide on-site parking through tandem parking or uncovered parking, but not through on-street parking. For purposes of this chapter, the parking ratios set forth in this section shall be deemed a concession or incentive available to the applicant under NCC 5.14.060. (Ord. 2016-3 § 9, 7-12-2016)

5.14.090 Standards for density bonus housing developments.

A. Affordable units qualifying a housing development for a density bonus shall be reasonably dispersed throughout the housing development and compatible with the design of market rate units in terms of appearance, materials, and finished quality. The applicant may reduce the interior amenities and square footage of inclusionary units, provided all units conform to all other requirements of this City Code.

B. For developments with multiple market rate units containing differing numbers of bedrooms, affordable units qualifying a housing development for a density bonus shall be representative of the market rate unit mix.

C. All building permits for affordable units qualifying a housing development for a density bonus shall be issued concurrently with, or prior to, issuance of building permits for the market rate units, and the affordable units shall be constructed concurrently with, or prior to, construction of the market rate units. Occupancy permits and final inspections for affordable units qualifying a housing development for a density bonus shall be approved concurrently with, or prior to, approval of occupancy permits and final inspections for the market rate units. (Ord. 2016-3 § 9, 7-12-2016)

5.14.100 Application requirements.

A. An application for a density bonus, incentive, concession, waiver, modification, or revised parking standard pursuant to this section shall be submitted with the first approval of the housing development and processed concurrently with all other applications required for the housing development.

B. For affordable units qualifying the housing development for a density bonus, the application shall include the following information:

1. A site plan identifying the base project without the density bonus, number and location of all inclusionary units, affordable units qualifying the project for a density bonus, and proposed density bonus units; and

2. Proposed category(ies) qualifying the housing development for a density bonus; and

3. Level of affordability of all affordable and inclusionary units and proposals for ensuring affordability, if applicable; and

4. A description of any requested incentives, concessions, waivers or modifications of development standards, or modified parking standards.

5. If a density bonus or concession is requested for a land donation, the application shall show the location of the land to be dedicated and provide evidence that each of the findings included in NCC 5.14.040 can be made.

C. Upon submission of the application to the City, the Planning Director or designee shall determine if the application is complete and conforms to the provisions of this chapter. No application for a first approval for a housing development requesting a density bonus, incentives, concessions, or waivers may be deemed complete unless an affordable housing plan is submitted conforming to the provisions of this chapter.

D. A request for a minor modification of an approved application may be granted by the City Manager or designee if the modification is substantially in compliance with the original application and the conditions of approval. Other modifications to the affordable housing plan shall be processed in the same manner as the original application. (Ord. 2016-3 § 9, 7-12-2016)

5.14.110 Application review.

A. An application for a density bonus, incentive, concession, waiver, modification, or revised parking standard pursuant to this chapter shall be reviewed as part of the first approval of the housing development by the approval body with authority to approve the housing development, unless additional review by the Planning Commission or City Council is required. An applicant proposing a housing development pursuant to this chapter may submit a preliminary application prior to the submittal of any formal request for approval of a housing development.

B. Within 90 days of receipt of the preliminary application the City shall provide to an applicant a letter which identifies project issues of concern (the maximum financial assistance that the Planning Director can support when making a recommendation to the City Council), and the procedures for compliance with this chapter. The Planning Director shall inform the applicant that the requested additional incentives shall be recommended for consideration with the proposed housing development, or that alternative or modified additional incentives pursuant to NCC 5.14.060 shall be recommended for consideration in lieu of the requested incentives. If alternative or modified incentives are recommended by the Planning Director, the recommendation shall establish how the alternative or modified incentives can be expected to have an equivalent affordability effect as the requested incentives.

C. Before approving an application for a density bonus, incentive, concession, waiver, or modification, the approval body shall make the following findings:

1. The housing development is: (a) eligible for a density bonus, and/or (b) any concessions, incentives, waivers, modifications, or reduced parking standards requested conform to all requirements of this chapter, and (c) supported by a financing mechanism for all implementation and monitoring costs.

2. If the density bonus is based all or in part on dedication of land, the application meets the qualifications and findings stated in NCC 5.14.040.

3. If a waiver or modification is requested, the applicant has shown that the waiver, modification or reduction of development standards meets the qualifications and findings stated in NCC 5.14.070.

D. If the findings stated in subsection (C) of this section can be made, and a request for an incentive or concession is otherwise consistent with this chapter, the approval body may deny a concession or incentive based upon written findings of any of the factors stated in NCC 5.14.060 for the denial or disqualification of a concession or incentive.

E. If the required findings stated in subsection (C) of this section can be made, and a request for a waiver or modification is otherwise consistent with this chapter, the approval body may deny the requested waiver or modification based upon written findings of any of the factors stated in NCC 5.14.070 for the denial or disqualification of a waiver or modification.

F. Nothing in this section shall be interpreted to require the City to grant an incentive or concession or to waive or reduce development standards if that incentive, concession, waiver, or reduction has a specific adverse impact upon health, safety, or the physical environment, and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact.

G. Any decision regarding a density bonus, incentive, concession, waiver, modification, or revised parking standard may be appealed pursuant to NCC 5.27.030 (Appeals) of Chapter 5.27 NCC (Interpretation, Administration, and Enforcement). In accordance with State law, neither the granting of a concession or incentive, nor the granting of a density bonus, shall be interpreted, in and of itself, to require a general plan amendment, zoning change, or other discretionary approval. (Ord. 2016-3 § 9, 7-12-2016)

5.14.120 Developer affordable housing agreement.

A. Applications requesting a density bonus shall agree to enter into a density bonus housing agreement with the City. The terms of the draft agreement shall be reviewed and revised as appropriate by the Planning Director, who shall formulate a recommendation to the planning commission for final approval. A density bonus housing agreement shall be made a condition of the discretionary planning permits for all housing developments pursuant to this chapter and shall be recorded as a restriction on any parcels on which the affordable units or density bonus units will be constructed.

B. The density bonus housing agreement shall be recorded prior to final or parcel map approval, or, where the housing development does not include a map, prior to issuance of a building permit for any structure in the housing development. The density bonus housing agreement shall run with the land and bind future owners and successors in interest. (Ord. 2016-3 § 9, 7-12-2016)