Chapter 17.58
DENSITY BONUSES

Sections:

17.58.010    Purpose.

17.58.020    Definitions.

17.58.030    Restricted occupancy.

17.58.035    Donation of land.

17.58.040    Grant or denial of additional incentives.

17.58.045    Additional incentives.

17.58.050    Affordability standards.

17.58.060    Density bonus agreement requirements.

17.58.070    Application procedure.

17.58.010 Purpose.

The purpose of this chapter is to satisfy the City’s obligations under Government Code Section 65915 et seq. (the “State Density Bonus Law”), as amended from time to time. This chapter specifies the procedures for providing density bonuses and incentives to applicants who seek such density bonuses for housing development within, or for the donation of land for housing within, the City of Lake Elsinore. Interpretation of the requirements, definitions, and standards set forth in this chapter shall be construed so as not to be inconsistent with the State Density Bonus Law. [Ord. 1253 § 1, 2008. Code 1987 § 17.26.010].

17.58.020 Definitions.

As used in this chapter, the following terms shall have the following meanings unless otherwise indicated from the context:

“Additional incentive” shall have the meaning set forth in LEMC 17.58.045(A).

“Affordable housing cost” means the sum of actual or projected monthly payments for all of the following associated with for-sale restricted units: principal and interest on a mortgage loan, including any loan insurance fees, property taxes and assessments, fire and casualty insurance, property maintenance and repairs, homeowners’ association fees, and a reasonable allowance for utilities; provided, that such sum meets the requirements set forth in Section 50052.5 of the Health and Safety Code.

“Affordable rent” means monthly housing expenses, including a reasonable allowance for utilities, for restricted units reserved for rental to very low or lower income households, not exceeding the following calculations:

1. Very Low Income. Fifty percent of the area median income for the County, adjusted for household size, multiplied by 30 percent and divided by 12; and

2. Lower Income. Sixty percent of the area median income for the County, adjusted for household size, multiplied by 30 percent and divided by 12.

“Affordable sales price” means a sales price at which households can qualify for the purchase of restricted units based on affordable housing cost for the particular household type the project is restricted to (e.g., very low income, lower income, or moderate income household), calculated on the basis of underwriting standards of mortgage financing available for the development.

“Area median income” means the median family income of a geographic area of the State, as published annually by the California Department of Housing and Community Development pursuant to Health and Safety Code Section 50093.

“Child care facility” means a child day care 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” means a multifamily development complying with the requirements of subdivision (c) of Section 1351 of the Civil Code.

“Density bonus” means, unless a lesser percentage is requested by the applicant, a minimum increase in the number of dwelling units authorized for a particular parcel of land of:

1. At least five percent over the otherwise maximum residential density if the project does not meet the requirements of LEMC 17.58.030(A)(1), (2) or (3) and the project is a common interest development or planned development that meets the requirements of LEMC 17.58.030(A)(4). The percentage of density bonus granted shall increase by one percent for every one percent increase above 10 percent (the threshold percentage of units required by LEMC 17.58.030(A)(4)), up to a maximum density bonus of 35 percent over the maximum residential density; or

2. At least 20 percent over the otherwise maximum residential density for projects containing units restricted to occupancy by lower income households. The percentage of density bonus granted shall increase by one and one-half percent for every one percent above 10 percent (the threshold percentage of units required by LEMC 17.58.030(A)(1)), up to a maximum density bonus of 35 percent over the maximum residential density; or

3. At least 20 percent over the permitted maximum residential density for projects containing units restricted to occupancy by very low income households. The percentage of density bonus granted shall increase by two and one-half percent for every one percent above five percent (the threshold percentage of units required by LEMC 17.58.030(A)(2)), up to a maximum density bonus of 35 percent over the maximum residential density; or

4. Twenty percent over the maximum residential density if the project meets the requirements of LEMC 17.58.030(A)(3).

For the purpose of calculating a density bonus, the residential units do not have to be based upon individual subdivision maps or parcels. When calculating the density bonus, the applicant requesting the density bonus shall elect whether the bonus shall be awarded on the basis of LEMC 17.58.030(A)(1), (2), (3) or (4). The density bonus shall be permitted in geographic areas of the housing development other than the areas where the units for the very low, moderate, or lower income households are located. The amount of density bonus to which the applicant is entitled shall vary according to the amount by which the percentage of affordable housing units exceeds the percentage established in LEMC 17.58.030. All density bonus calculations resulting in fractional numbers shall be rounded up to the next whole number.

“Density bonus agreement” means a legally binding agreement between a developer and the City to ensure that the requirements of this chapter are satisfied. The agreement shall establish, among other things, the number of restricted units, their size, location, terms and conditions of affordability, and production schedule. See LEMC 17.58.060.

“Density Bonus Law” means California Government Code Section 65915 et seq., as amended from time to time.

“Density bonus units” means those residential units granted pursuant to the provisions of this chapter which exceed the otherwise maximum residential density for the development of the site.

“Development standard” includes site or construction conditions that apply to a residential development pursuant to any ordinance, General Plan element, specific plan, Municipal Code amendment, or other local condition, law, policy, resolution, or regulation.

“Economically feasible” means a housing project that can be built with a reasonable rate of return. The housing developer’s financial ability to build the project shall not be a factor.

“Eligible project” means a residential development project qualifying for a density bonus within the meaning of this chapter.

“Household type” means whether the occupants of the housing units are members of a very low income, lower income, or moderate income household or are senior citizens.

“Housing development” means one or more groups of projects consisting of five or more residential units (excluding density bonus units), including single-family, multifamily, and mobilehomes for sale or rent pursuant to this chapter and including a subdivision or planned development or common interest development. Housing development also includes either (1) a project to substantially rehabilitate and convert an existing commercial building to residential use, or (2) the substantial rehabilitation of an existing multifamily dwelling, as defined in subdivision (d) of Section 65863.4 of the Government Code, where the result of the rehabilitation would be a net increase in available residential units.

“Lower income household” means a household whose gross income is as established by Health and Safety Code Section 50079.5, as amended from time to time.

“Maximum residential density” means the maximum number of residential units allowed by the General Plan range specified on the Land Use Map of the City’s General Plan Land Use Element and zoning ordinance as of the date of the project application, excluding the provisions of this chapter. If the housing development is within a planned development overlay zone, the maximum residential density shall be determined on the basis of the General Plan and the maximum density of the underlying zone.

“Moderate income household” means a household whose gross income is as established by Health and Safety Code Section 50093, as amended from time to time.

“Planned development” means a development described in subdivision (k) of Civil Code Section 1351, as amended from time to time.

“Restricted unit” means a dwelling unit within a housing development which will be reserved for sale or rent to, and affordable to, very low income, lower income, or moderate income households or senior citizens in accordance with the terms of this chapter.

“Senior citizen” means:

1. A person at least 62 years of age; or

2. A person at least 55 years of age in a senior citizen housing development, as defined by State and Federal law.

“Senior citizen housing development” has the meaning set forth in Sections 51.2 and 51.3 of the California Civil Code, as amended from time to time.

“Senior citizen units” means:

1. Assisted housing units for senior citizens; or

2. Housing intended for, and solely occupied by, persons at least 62 years of age; or

3. Housing consisting of at least 150 units in which 80 percent of the units have at least one person aged 55 or older and which provide special facilities and services designed for seniors. Eligibility for a density bonus or other incentive for senior citizen units must be in conformity with State and Federal laws governing senior housing projects; or

4. Mobilehome parks that limit residency based on age requirements for housing for older persons pursuant to Section 798.76 or 799.5 of the Civil Code, as amended from time to time.

“Very low income household” means a household whose gross income is as established by Health and Safety Code Section 50105, as amended from time to time. [Ord. 1253 § 1, 2008. Code 1987 § 17.26.020].

17.58.030 Restricted occupancy.

A. The City shall grant a density bonus and at least one additional incentive as set forth in LEMC 17.58.040 and 17.58.045, or provide other incentives or concessions of equivalent financial value based upon the land cost per dwelling unit, except as provided in LEMC 17.58.040, to a project applicant of a housing development who applies for and agrees to provide any of the following:

1. At least 10 percent of the units (excluding density bonus units) as restricted units restricted to occupancy by lower income households; or

2. At least five percent of the units (excluding density bonus units) as restricted units restricted to occupancy by very low income households; or

3. At least 35 units restricted as senior citizen units, unless prohibited by State and/or Federal law; or

4. At least 10 percent of the units (excluding density bonus units) in a common interest development or a planned development as restricted units restricted to occupancy by moderate income households.

B. When an applicant proposes to construct a housing development that conforms to the requirements of subsection (A) of this section and includes a child care facility that will be located on the premises of, as part of, or adjacent to the housing development project, the City shall grant either of the following, except as provided in LEMC 17.58.040:

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; or

2. An additional incentive that contributes significantly to the economic feasibility of the construction of the child care facility.

C. In determining the minimum number of density bonus units to be granted pursuant to this section, the maximum residential density for the site shall be multiplied by the appropriate percentage(s) set forth in the definition of density bonus. When calculating the number of permitted density bonus units, any fractions of units shall be rounded to the next largest integer.

D. In determining the number of restricted units to be provided pursuant to this section, the maximum residential density for the site shall be multiplied by 0.05 where very low income households are targeted or by 0.10 where moderate or lower income households are targeted. The density bonus units shall not be included when determining the total number of restricted units in the housing development. When calculating the required number of restricted units, any resulting decimal fraction shall be rounded to the next largest integer.

E. In cases where a density increase of less than five percent (for a qualifying common interest development or planned development) or 20 percent (for restricted units targeted to very low income households and/or lower income households) is requested, no reduction will be allowed in the number of restricted units required. In cases where a density increase of more than 35 percent is requested, the requested density increase, if granted, shall be considered an additional incentive, as outlined in LEMC 17.58.045.

F. If a project applicant agrees to construct more than 10 percent of the total units for lower income households, more than five percent of the total units for very low income households, or more than 10 percent of the total units in a common interest development or planned development for moderate income households, such that the calculation of density bonus units would result in a density bonus of more than 35 percent, the project applicant remains entitled to only one density bonus and one or more additional incentive(s) pursuant to LEMC 17.58.040 and 17.58.045. Similarly, a project applicant who agrees to construct senior citizen housing with 10 percent or five percent of the units reserved for lower or very low income households, respectively, or 10 percent of the total units in a senior citizen common interest development for moderate income households is only entitled to one density bonus and additional incentive(s). The City may, however, grant additional incentives in addition to those required by LEMC 17.58.040 and 17.58.045 to facilitate the inclusion of more restricted units than are required by this chapter.

G. If an applicant agrees to construct both 10 percent of the total units for lower income households and five percent of the total units for very low income households, or either one or both of the foregoing and 10 percent of the units in a common interest development or planned development for moderate income households, the developer is entitled to only one density bonus and the additional incentive(s) required by LEMC 17.58.040 and 17.58.045, although the City may, at its discretion, grant more than one density bonus or additional incentive to facilitate the inclusion of more restricted units than are required by this chapter.

H. The City shall not be required to approve a project solely because a project complies with density bonus requirements. However, a housing development which seeks and qualifies for a density bonus and additional incentive(s) cannot be approved without granting the density bonus and the additional incentive(s) or an alternative incentive of equivalent financial value based upon the land cost per dwelling unit.

I. Nothing in this chapter limits the City’s right to deny an affordable housing project as provided for in Government Code Section 65589.5, as amended from time to time. [Ord. 1253 § 1, 2008. Code 1987 § 17.26.030].

17.58.035 Donation of land.

When an applicant for a tentative subdivision map, parcel map, or other residential development approval donates land to the City as provided for in this section, the applicant shall be entitled to a 15 percent increase above the otherwise maximum residential density for the entire development.

For each one percent increase above the minimum 10 percent land donation described in subsection (B) of this section, the density bonus shall be increased by one percent, up to a maximum of 35 percent. This increase shall be in addition to any density bonus and/or additional incentive(s) to which the applicant is entitled as a result of its qualification, if any, under LEMC 17.58.030(A), up to a maximum combined mandated density increase of 35 percent if an applicant seeks both the increase required pursuant to this section and LEMC 17.58.030(A).

All density calculations resulting in fractional units shall be rounded up to the next whole integer. Nothing in this section shall be construed to enlarge or diminish the authority of the City to require a developer to donate land as a condition of development.

An applicant shall be eligible for the increased density described in this section if all of the following conditions are met:

A. The applicant donates and transfers the land no later than the date of approval of the final subdivision map, parcel map, or residential development application.

B. The developable acreage and zoning classification of the land being transferred to the City are sufficient to permit construction of restricted units affordable to very low income households in an amount not less than 10 percent of the number of residential units of the proposed development.

C. The transferred land is at least one acre in size or of sufficient size to permit development of at least 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. The land shall have appropriate zoning and development standards to make the development of the affordable units feasible. No later than the date of approval of the final subdivision map, parcel map, or of the residential development, the transferred land shall 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 City may subject the proposed development to subsequent design review to the extent authorized by subdivision (i) of Health and Safety Code Section 65583.2, as amended from time to time, if the design is not reviewed by the City prior to the time of transfer.

D. The transferred land and the affordable units shall be subject to a deed restriction ensuring continued affordability of the units consistent with LEMC 17.58.050, which shall be recorded on the property at the time of dedication.

E. 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 another developer.

F. The transferred land shall be within the boundary of the proposed development or, if the City agrees, within one-fourth mile of the boundary of the proposed development. [Ord. 1253 § 1, 2008. Code 1987 § 17.26.035].

17.58.040 Grant or denial of additional incentives.

A. The City shall provide a density bonus and the following number of additional incentives for qualified housing developments, upon the written request of the developer. The developer shall receive the following number of additional incentives:

1. One additional incentive for projects that include at least 10 percent of the total units (excluding density bonus units) for lower income households, at least five percent of the total units (excluding density bonus units) for very low income households, or at least 10 percent of the total units (excluding density bonus units) for moderate income households in a common interest development or planned development.

2. Two additional incentives for projects that include at least 20 percent of the total units (excluding density bonus units) for lower income households, at least 10 percent of the total units (excluding density bonus units) for very low income households, or at least 20 percent of the total units (excluding density bonus units) for moderate income households in a common interest development or planned development.

3. Three additional incentives for projects that include at least 30 percent of the total units (excluding density bonus units) for lower income households, at least 15 percent of the total units (excluding density bonus units) for very low income households, or at least 30 percent of the total units (excluding density bonus units) for moderate income households in a common interest development or planned development.

B. The City shall grant the additional incentive(s) unless the City makes a written finding, based on substantial evidence, of either of the following:

1. The additional incentive is not required in order to provide for affordable housing costs, or for rents for the restricted units to be set as specified in LEMC 17.58.050.

2. The additional incentive would have a specific adverse impact, as defined in paragraph (2) of subdivision (d) of Section 65589.5 of the Government Code, upon the public health and safety or the physical environment or on any real property that is 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 very low, lower, and moderate income households.

C. The City may offer an equivalent financial incentive in lieu of granting a density bonus and the additional incentive(s). The value of the equivalent financial incentive shall equal at least the land cost per dwelling unit savings that would result from (1) the density bonus and the additional incentive(s) otherwise required by this chapter, or (2) the density bonus required by this chapter, where an additional incentive is not requested or is determined unnecessary. Any equivalent financial incentive must contribute significantly to the economic feasibility of providing the restricted units pursuant to this chapter.

D. Notwithstanding any requirement of this chapter, the City shall not be required to provide a density bonus or additional incentive(s) for a child care facility if it finds, based upon substantial evidence, that the community has adequate child care facilities. [Ord. 1253 § 1, 2008. Code 1987 § 17.26.040].

17.58.045 Additional incentives.

A. Additional incentives may include, but are not limited to, 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 (commencing with Section 18901) of Division 13 of the Health and 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.

2. Approval of mixed use zoning in conjunction with the housing project if commercial, office, industrial, or other land uses will reduce the cost of the 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 concessions proposed by the project applicant or the City, which result in identifiable cost reductions. Permissible concessions include, but are not limited to:

a. Reduction of park land dedication fees;

b. Provision of tax-exempt financing or other financial assistance as approved by the City Council or Redevelopment Agency;

c. Reduction or elimination of child care fees; and

d. Expedited processing of applicant’s use application and building permits.

4. A density bonus of more than 35 percent, but not greater than 50 percent.

5. Direct financial aid (e.g., redevelopment set-aside, community development block grant funding) in the form of a loan or a grant to subsidize or provide low-interest financing for on- or off-site improvements, land, or construction costs.

B. An applicant may submit to the City a proposal for the specific additional incentive(s) it is requesting, and/or for a waiver or reduction of zoning or development standards (hereinafter “waiver or modification”), and may request a meeting with the City. The City shall grant such a meeting to the applicant.

C. Applicants seeking a waiver or modification that would otherwise inhibit the utilization of a density bonus on a particular site shall comply with procedures set forth in LEMC 17.58.070(G). Applicant shall not be required to seek a General Plan amendment, zoning change, or other discretionary approval when requesting a waiver or modification in accordance with this chapter.

D. The City may offer an equivalent financial incentive in lieu of granting a density bonus and any additional incentive(s) in accordance with LEMC 17.58.040(C). [Ord. 1253 § 1, 2008. Code 1987 § 17.26.045].

17.58.050 Affordability standards.

A. For units restricted to occupancy by very low and lower income households that qualified the applicant for the award of the density bonus, an applicant shall agree to, and the City shall require, continued affordability of the restricted units for 30 years or a longer period of time if required by the construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy program. Those units targeted for lower and very low income households shall be affordable at a rent as defined in Section 50053 of the Health and Safety Code, as amended from time to time.

B. An applicant shall agree to, and the City shall require, that the initial occupants of restricted units that are directly related to the receipt of a density bonus in a common interest development or in a planned development qualify as moderate income household(s). 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 seller shall pay to the City both the initial subsidy received by the seller from the City and the City’s proportionate share of appreciation. The City’s proportionate share of the appreciation shall then be used within three years for any of the purposes described in subdivision (e) of Section 33334.2 of the Health and Safety Code to promote homeownership. For purposes of this subsection, the City’s proportionate share of appreciation shall be the ratio of the initial subsidy to the fair market value of the home at the time of the initial sale. The local government’s initial subsidy shall be equal to the fair market value of the home at the time of initial sale minus the initial sale price to 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. A density bonus agreement between the project applicant and the City shall be made a condition of the discretionary planning permits for all housing developments seeking a density bonus pursuant to this chapter. The density bonus agreement shall be recorded as a restriction on the parcel or parcels on which the restricted units will be constructed prior to the commencement of the construction. The density bonus agreement shall be consistent with LEMC 17.58.060 and include any other applicable requirements set forth elsewhere in this chapter.

D. Restricted units in a project and phases of a project shall be constructed concurrently with or prior to the construction of market-rate units unless both the City and the project applicant agree within the density bonus agreement to an alternative schedule for development.

E. Restricted units shall be provided as follows:

1. When practical, restricted units shall be dispersed throughout the project;

2. Restricted units shall be built on site;

3. Restricted units shall be identical with the design of any market-rate rental units in the project with the following exception: reduction of interior amenities for restricted units will be permitted upon prior approval by the City as necessary to retain project affordability; and

4. Where feasible, the number of bedrooms of the restricted units shall be equivalent to the bedroom mix of the nonrestricted units of the housing development, except that the developer may include a higher proportion of restricted units with more bedrooms.

F. Housing developments shall comply with all applicable development standards, except as provided by this chapter.

G. The project applicant shall submit a detailed project financial report (pro forma) in such form as required by the City, which demonstrates the financial need for the additional incentives requested. The City may retain a consultant to review the financial report. The cost of the consultant shall be borne by the developer with the following exception: if the applicant is a nonprofit organization, the cost of the consultant may be paid by the City upon prior approval of the City Council.

H. If the applicant has applied to construct a housing development that includes a child care facility, then, as a condition of the approval of the housing development, the applicant shall agree to cause the child care facility to: (1) remain in operation for a period of time that is as long as or longer than the period of time during which the restricted units are required to remain restricted and affordable to very low, lower and/or moderate income households, as applicable, in accordance with this chapter; and (2) include in its attendance a percentage of children from very low, lower and/or moderate income households, as applicable, proportionate to or greater than the percentage of restricted units in the project restricted to such very low, lower and/or moderate income households, as applicable, required by this chapter.

I. Upon the request of the developer, the City shall not require a vehicular parking ratio, inclusive of handicapped and guest parking, of a development meeting the criteria of LEMC 17.58.030(A), that exceeds the following ratios:

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

2. Two to three bedrooms: two on-site parking spaces.

3. Four and more bedrooms: two and one-half on-site parking spaces.

If the total number of parking spaces required for a development is other than a whole number, the number shall 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.

This section shall apply to a development that meets the requirements of LEMC 17.58.030(A) but only at the request of the applicant. An applicant may request additional parking incentives or concessions beyond those provided in this section, subject to LEMC 17.58.035 and 17.58.045. [Ord. 1253 § 1, 2008. Code 1987 § 17.26.050].

17.58.060 Density bonus agreement requirements.

A. All restricted units shall be occupied by the household type specified in the written density bonus agreement required under this section. The required density bonus agreement shall be recorded as a deed restriction running with the land. The approval and recordation of the deed restriction shall take place prior to final map approval or, where a map is not being processed, prior to issuance of building permits for such parcels or units. The density bonus agreement shall be binding on the current owner and all future owners and successors in interest thereof.

B. The density bonus agreement shall include at least the following:

1. The total number of units approved for the housing development, including the number of restricted units;

2. A description of the household type to be accommodated by the restricted units, as outlined in LEMC 17.58.030, and the standards for determining the corresponding affordable rent or affordable sales price at an affordable housing cost;

3. The location, unit sizes (square feet), and number of bedrooms of restricted units;

4. Tenure of use restrictions for restricted units of at least 30 years or the requirement of an equity share upon sale of the unit, in accordance with LEMC 17.58.050;

5. A schedule for completion and occupancy of the housing development, including the restricted units;

6. A description of the additional incentive(s) being provided by the City;

7. A description of remedies for breach of the agreement by either party;

8. If applicable, the provisions required by Section 65916 of the Government Code, as amended from time to time; and

9. Other provisions to ensure implementation and compliance with this chapter.

C. In the case of for-sale housing developments, the density bonus agreement shall provide for the following conditions governing the initial sale and use of restricted units:

1. Restricted units shall, upon initial sale, be sold to eligible very low, lower, or moderate income households at an affordable sales price and affordable housing cost, or to senior citizens (i.e., maintained as senior citizen housing) as defined by this chapter;

2. Restricted units shall be initially owner occupied by eligible very low, lower, or moderate income households, or by senior citizens in the case of senior citizen housing; and

3. The initial purchaser of each restricted unit shall execute an instrument or agreement approved by the City agreeing to pay the City its proportionate share of appreciation upon the sale of the restricted unit in accordance with LEMC 17.58.050(B). Such instrument or agreement shall be recorded against the parcel containing the restricted unit and shall contain such provisions as the City may require to ensure continued compliance with this chapter and the State Density Bonus Law.

D. In the case of rental housing developments, the density bonus agreement shall provide for the following conditions governing the use of restricted units during the use restriction period:

1. The requirements and procedures for qualifying tenants, establishing affordable rent, filling vacancies, and maintaining restricted units for qualified tenants;

2. Provisions requiring owners to verify tenant incomes and maintain financial 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 of each person occupying any restricted unit, and which identifies the bedroom size and monthly rent or cost of each restricted unit; and

4. Property management and maintenance guarantees.

E. If the applicant has applied to construct a housing development that includes a child care facility, then the density bonus housing agreement shall include provisions which require continued compliance with the requirements of LEMC 17.58.050(H).

F. The City may establish fees associated with establishing and monitoring of restricted units. [Ord. 1253 § 1, 2008. Code 1987 § 17.26.060].

17.58.070 Application procedure.

A. A project applicant may submit to the Community Development Department a preliminary application for the development of housing pursuant to this chapter prior to the submittal of any formal application. The City shall, within 90 days of receipt of the preliminary application, notify the project applicant in writing of its procedures for granting a density bonus and/or additional incentives if such benefits are requested. The project applicant may also submit a preliminary application for a waiver or modification pursuant to this chapter. The City’s procedures for waiver and modification are set forth in subsection (G) of this section.

B. Applicants are encouraged to schedule a pre-application conference with the Director of Community Development or designated staff to discuss and identify potential application issues, including prospective additional incentive(s). No charge will be required for the pre-application conference.

C. A preliminary application shall include the following information:

1. A brief description of the proposed housing development, including the total number of units, restricted units, and density bonus units proposed.

2. The zoning and General Plan designations and assessor’s parcel number(s) of the project site.

3. A vicinity map and preliminary site plan, drawn to scale, including building footprints, driveway, and parking layout.

4. If an additional incentive is requested, the application should describe why the additional incentive is necessary to provide the restricted units.

5. Other information as may be required by the Planning and Community Development Departments.

D. Within 90 days of receipt of the preliminary application, the City shall provide to the applicant a letter which identifies project issues of concern, the maximum financial assistance that the Director of Community Development can provide when making a recommendation to the City Council, and the procedures for compliance with this chapter.

E. The Director of Community Development shall inform the applicant that the requested additional incentive(s) shall be recommended for consideration with the proposed housing development, or that alternative or modified additional incentive(s) pursuant to this chapter shall be recommended for consideration in lieu of the requested additional incentive(s). If alternative or modified additional incentive(s) are recommended by the Director of Community Development, the recommendation shall establish how the alternative or additional incentive(s) can be expected to have an equivalent affordability effect as the requested additional incentive(s).

F. An application pursuant to this chapter shall be processed concurrently with any other application(s) required for the housing development. The decision-making body authorized to approve the discretionary permit for the underlying project shall also be the decision-making body for the density bonus application. If the underlying project is a use by right (i.e., does not require any discretionary permit), the decision-making body for the density bonus application shall be the Director of Community Development and the review process shall follow the process set forth for the Director of Community Development’s permits established by the City. An application for a density bonus shall provide additional information as specified in this chapter, specifically:

1. A written statement specifying the information set forth in subsection (A) of this section;

2. A project financial report (pro forma);

3. If a waiver or modification is requested, the application should describe why deviation from the established development or zoning standards is necessary to provide the restricted units, in accordance with this chapter; and

4. Any other information requested by the Director of Community Development.

G. An applicant requesting waiver or modification must follow the following procedures:

1. File an application with the Director of Community Development seeking a waiver or modification. The application shall demonstrate that such deviations are necessary to make the housing development economically feasible in accordance with Government Code Section 65915(f), as amended from time to time.

2. The Director of Community Development or his/her designee shall review the application seeking a waiver or modification. After reviewing the application, the Director of Community Development shall set the matter for a public hearing before the Planning Commission at which hearing evidence shall be taken.

3. Written notice of the hearing shall be mailed, at least 24 days before the date of the hearing. The notice shall be delivered to the applicant and property owners and occupants of property within 500 feet of the property that is subject to the request.

4. The Director of Community Development shall prepare a report to the Planning Commission with conclusions and recommendations relating to the request for a waiver or modification.

5. The Planning Commission shall make a determination supported by substantial evidence on the application for waiver or modification. The Planning Commission’s decision shall be supported by written findings.

6. An application for waiver or modification may be denied only on the grounds set forth in Government Code Section 65915(d)(2), as amended from time to time.

7. The Planning Commission shall provide the applicant with notice of determination within 15 calendar days of the date the decision is made.

8. The Planning Commission decision is final unless appealed to the City Council within 15 calendar days of the date of the mailing of the notice of determination. [Ord. 1253 § 1, 2008. Code 1987 § 17.26.070].