Chapter 18.17
AFFORDABLE HOUSING INCENTIVES Revised 4/24
Sections:
18.17.030 City incentives for below market rate units. Revised 4/24
18.17.040 State mandated density bonuses.
18.17.050 State mandated concessions and incentives, parking reductions, and waivers.
18.17.070 Requirements for density bonus below market rate units.
18.17.010 Purpose.
The purpose of this chapter is to provide procedures for granting incentives for the construction of affordable housing to encourage the production of affordable housing and to achieve the following additional goals:
A. Housing Element Goals and Policies. To implement goals and policies contained in the Housing Element providing for incentives for the construction of affordable housing.
B. Compliance with State Law. To comply with the provisions of Government Code Section 65915 et seq. (“State Density Bonus Law”), which mandates the adoption of a City ordinance specifying procedures for providing the density bonuses and other incentives and concessions required by those sections. (Ord. 1583 § 2 (Exh. A), 2022; Ord. 1438 § 4 (Exh. A (part)), 2011: Ord. 1416 § 4 (Exh. A (part)), 2010. Formerly 18.204.010)
18.17.020 Definitions.
Terms defined in Section 18.16.020 shall have the same meaning in this chapter. In addition, the following terms shall have the following meanings when used in this chapter:
A. “Bonus units” means dwelling units allowed pursuant to Section 18.17.030(A) or Section 18.17.040 that exceed the otherwise allowable maximum gross residential density for a housing development.
B. “Concessions and incentives” means regulatory concessions and incentives as defined by Government Code Section 65915(k).
C. “Density bonus” means a density increase over the otherwise allowable maximum gross residential density for a housing development, pursuant to Section 18.17.030(A) or Section 18.17.040.
D. “Density bonus below market rate (BMR) unit” means a dwelling unit that is offered at an affordable rent or affordable ownership cost to moderate-, low- or very low-income households; and qualifies a housing development for a density bonus pursuant to Section 18.17.040.
E. “Development standard” means a site or construction condition that applies to a housing development pursuant to any ordinance, General Plan element, specific plan, or other local condition, law, policy, resolution, or regulation. A “site and construction condition” is a development regulation or law that specifies the physical development of a site and buildings on the site in a housing development.
F. “Maximum allowable gross residential density” means the maximum number of dwelling units permitted in a housing development by the City’s Zoning Ordinance and by the Land Use Element of the General Plan on the date that the application for the housing development is submitted, excluding any density bonus. If the maximum density allowed by the Zoning Ordinance is inconsistent with the density allowed by the Land Use Element of the General Plan, the Land Use Element density shall prevail.
G. “Senior citizen housing development” means a housing development with at least thirty-five (35) dwelling units, meeting the definition of a senior citizen housing development set forth in California Civil Code Section 51.3 or a mobile home park that limits residency based on age requirements pursuant to Civil Code Section 798.76 or 799.5. (Ord. 1583 § 2 (Exh. A), 2022; Ord. 1438 § 4 (Exh. A (part)), 2011: Ord. 1416 § 4 (Exh. A (part)), 2010. Formerly 18.204.020)
18.17.030 City incentives for below market rate units. Revised 4/24
The incentives provided by this section are available to housing developments that provide on-site below market rate units in compliance with Chapter 18.16. Housing developments which have been granted a density bonus pursuant to Section 18.17.040 are not eligible for the City density bonus described in subsection A of this section but may be granted another incentive included in this section as a concession or incentive granted pursuant to Section 18.17.050.
A. City Density Bonus.
1. Bonus for Owner-Occupied Units. Upon the discretionary issuance of a conditional use permit by the Planning and Transportation Commission, residential owner-occupied developments with one or more on-site below market rate units that are affordable to low-income households, or to a lower income category, may be granted one (1) additional unit for each unit affordable to low-income households or to a lower income category. This density bonus shall not apply to single-family residential developments and is an alternative to density bonuses allowed under California Government Code Section 65915 and Section 18.17.040.
2. Bonus for Rental Units. Upon the discretionary issuance of a conditional use permit by the Planning and Transportation Commission, residential rental developments with one (1) or more on-site below market rate units that are affordable to low-income households may be granted two (2) additional units for each unit affordable to low-income households. Residential rental developments with one (1) or more on-site below market rate units that are affordable to very low-income households, or to a lower income category, may be granted four (4) additional units for each unit affordable to very low-income households or to a lower income category. This density bonus shall not apply to single-family residential developments and is an alternative to density bonuses allowed under California Government Code Section 65915 and Section 18.17.040.
B. Modified Development Standard Calculations. Bonus unit(s) approved under the density bonus incentive described in subsection A of this section shall be exempted from floor area ratio and density requirements. In addition, the bonus unit(s) will not be counted in determining the required number of below market rate units.
C. Flexible Parking Standards. Residential developments with one (1) or more on-site below market rate units shall be allowed limited reductions in the parking requirements related to any dwelling units or allowed limited use of tandem and/or shared parking arrangements or allowed a combination of these modified parking standards.
D. Flexible Setback Allowance. Residential developments with one (1) or more on-site below market rate units may be allowed limited reductions in the minimum setback requirements if the following findings are made through the design review process:
1. That the proposed alternative design at the proposed location will not be detrimental or injurious to improvements in the vicinity and will not be detrimental to the public health, peace, safety, comfort, general welfare or convenience; and
2. The proposed alternative design shall not significantly reduce the privacy of the adjoining property owners or significantly reduce sunlight into adjoining properties.
E. Permit Streamlining. In certain zoning districts, the requirement of a conditional use permit for dwelling units above the ground floor may be eliminated for residential developments with one (1) or more on-site below market rate units.
F. Financial Assistance. To the extent budgeted by the City Council and otherwise available, financial assistance from the City or from sources as may be available to the City may be available to the builder in the form of loans or grants for the below market rate housing component of the residential development. The builder shall be responsible for complying with all requirements associated with the particular funding source(s), including any requirements imposed by the State for payment of prevailing wages. Rental residential developments that offer the deepest affordability and which lack alternative funding sources shall be given the highest priority for financial assistance, in particular, rental residential developments affordable to very low- and low-income households.
G. Below Market Rate Housing Plan. All requests for City incentives provided pursuant to this section shall be submitted with the below market rate housing plan required by Section 18.16.060(B). The builder shall include the following additional information in the below market rate housing plan:
1. A site plan depicting the number and location of all market rate, below market rate and bonus units.
2. A calculation of the maximum number of dwelling units permitted by the City’s Zoning Ordinance and General Plan for the residential development, excluding any density bonus.
3. Description of any City incentives requested pursuant to this section. (Ord. 1612 § 1 (Exh. A), 2024; Ord. 1583 § 2 (Exh. A), 2022; Ord. 1438 § 4 (Exh. A (part)), 2011: Ord. 1416 § 4 (Exh. A (part)), 2010. Formerly 18.204.030)
18.17.040 State mandated density bonuses.
A. Eligibility for Density Bonus. A “housing development” as defined in State Density Bonus Law shall be eligible for a density bonus and other regulatory incentives that are provided by State Density Bonus Law when the builder seeks and agrees to provide affordable and other types of housing in the threshold amounts specified in State Density Bonus Law. A “housing development” includes only the residential component of a mixed-use project.
B. Calculation of State Mandated Density Bonus.
1. The amount of density bonus to which a housing development is entitled shall be as specified in State Density Bonus Law. Each housing development is entitled to only one (1) density bonus, which may be selected on the basis of only one (1) category, as described in the subparagraphs of Government Code Section 65915(b)(1). Density bonuses from more than one (1) category may not be combined.
2. When calculating the number of permitted bonus units, any calculations resulting in fractional units shall be rounded to the next larger whole number, including base density and bonus density.
3. The bonus units shall not be included when determining the number of density bonus BMR units required to qualify for a density bonus. When calculating the required number of density bonus BMR units, any calculations resulting in fractional units shall be rounded to the next larger integer.
4. The builder may request a lesser density bonus than the housing development is entitled to, but no reduction will be permitted in the minimum percentages of required density bonus BMR units pursuant to State Density Bonus Law. Regardless of the number of density bonus BMR units, no housing development may be entitled to a density bonus of more than that authorized by State Density Bonus Law. (Ord. 1583 § 2 (Exh. A), 2022; Ord. 1438 § 4 (Exh. A (part)), 2011: Ord. 1416 § 4 (Exh. A (part)), 2010. Formerly 18.204.040)
18.17.050 State mandated concessions and incentives, parking reductions, and waivers.
A. Eligibility for Concessions and Incentives. A builder may request concessions and incentives pursuant to this section only when the builder is eligible for a State density bonus pursuant to Section 18.17.040. The number of incentives that may be requested shall be based upon the number the applicant is entitled to pursuant to State Density Bonus Law.
B. Concessions Not Requiring Evidence of Cost Reduction from Applicant. The following concessions and incentives shall be available to the builder without any requirement that the builder submit reasonable documentation to the City demonstrating that the requested concession or incentive results in identifiable and actual cost reductions:
1. A reduction in the usable open space requirement;
2. An increase in the maximum lot coverage requirement;
3. A reduction in minimum lot dimensions;
4. A reduction in minimum distance between buildings;
5. A reduction in landscaping area requirements;
6. Deferral until occupancy of development impact fees;
7. Any of the City incentives listed in Section 18.17.030(A) through (E), inclusive.
C. Concessions Requiring Evidence of Cost Reduction from Applicant. All other concessions and incentives shall require the builder to demonstrate to the City Council through the provision of reasonable documentation that the requested concession or incentive results in identifiable and actual cost reductions to the housing development to provide for affordable housing costs or rents.
D. Parking Reduction. If a housing development is eligible for a density bonus pursuant to Section 18.17.040(A), the builder may request an on-site vehicular parking ratio that does not exceed the number of spaces specified in Government Code Section 65915(p).
A builder may request this parking reduction in addition to concessions and incentives permitted by subsection A of this section.
E. Waiver. Applicants may seek a waiver of any development standards that will have the effect of physically precluding the construction of a housing development that is eligible for a density bonus pursuant to Section 18.17.040(A) at the densities or with the concessions and incentives permitted by Section 18.17.040 or subsection (A) of this section. The builder shall provide reasonable documentation demonstrating that the development standards that are requested to be waived will have the effect of physically precluding the construction of the housing development at the densities or with the concessions and incentives permitted by Section 18.17.040 or subsection (A) of this section.
F. City Financial Participation Not Required. Nothing in this chapter requires the provision of direct financial incentives for the housing development, including but not limited to the provision of financial subsidies, publicly owned land, fee waivers, or waiver of dedication requirements. The City at its sole discretion may choose to provide such direct financial incentives.
G. Prevailing Wages. Financial and certain other incentives may require payment of prevailing wages by the housing development if required by State law. (Ord. 1583 § 2 (Exh. A), 2022; Ord. 1438 § 4 (Exh. A (part)), 2011: Ord. 1416 § 4 (Exh. A (part)), 2010. Formerly 18.204.050)
18.17.060 Review procedures for State mandated density bonuses, concessions, incentives, waivers, and parking reductions. Revised 4/24
A. Below Market Rate Housing Plan. All requests for density bonuses, concessions and incentives, City incentives, parking reductions, and waivers provided pursuant to Sections 18.17.040 and 18.17.050 shall be submitted with the below market rate housing plan required by Section 18.16.060(B). The builder shall include the following additional information in the below market rate housing plan:
1. A tentative map or site plan or both, drawn to scale, depicting the number and location of all market rate units, below market rate units, density bonus BMR units, and bonus units.
2. Summary table showing the maximum number of dwelling units permitted by the City’s Zoning Ordinance and General Plan for the housing development, excluding any density bonus, proposed density bonus BMR units by income level, calculation of proposed bonus percentage, number of bonus units proposed, total number of dwelling units proposed on the site, and resulting density in units per acre.
3. The zoning and general plan designations and assessor’s parcel number(s) of the housing development site.
4. A description of all dwelling units existing on the site in the five (5) year period preceding the date of submittal of the application and identification of any units rented in the five (5) year period. If dwelling units on the site are currently rented, income and household size of all residents of currently occupied units, if known. If any dwelling units on the site were rented in the five (5) year period but are not currently rented, the income and household size of residents occupying dwelling units when the site contained the maximum number of dwelling units, if known.
5. Description of any recorded covenant, ordinance, or law applicable to the site that restricted rents or prices to levels affordable to very-low or lower income households in the five (5) year period preceding the date of submittal of the application.
6. If a density bonus is requested for a land donation, the location of the land to be dedicated, proof of site control, and reasonable documentation that each of the requirements included in California Government Code Section 65915(g) can be met.
7. If the application proposes any concessions or incentives pursuant to Section 18.17.050, the below market rate housing plan shall also include the following information:
a. The City’s usual regulatory requirement and the requested regulatory incentive, described both in writing and shown on the submitted site plans elevations, or other submitted plans, as appropriate.
b. Except where mixed-use zoning is proposed as a concession or incentive pursuant to Government Code Section 65915(k)(2), reasonable documentation to show that any requested incentive will result in identifiable and actual cost reductions to provide for affordable housing costs or rents.
c. If approval of mixed-use zoning is proposed, reasonable documentation that nonresidential land uses will reduce the cost of the housing development and that the nonresidential land uses are compatible with the housing development and the existing or planned development in the area where the proposed housing development will be located.
8. If the application proposes waivers of development standards, the below market rate housing plan shall also include the following information:
a. The City’s usual development standard and the requested development standard, described both in writing and shown on the submitted site plans elevations, or other submitted plans, as appropriate.
b. Reasonable documentation that the development standards for which each waiver is requested will have the effect of physically precluding the construction of the housing development at the densities or with the concessions or incentives permitted by State Density Bonus Law.
9. If the application proposes a reduction of parking standards, the below market rate housing plan shall also include a table showing parking required by the zoning regulations, parking proposed under Government Code Section Section 65915(p), and reasonable documentation that the project is eligible for the requested parking reduction.
10. If a density bonus or concession is requested for a child care facility or condominium conversion, the below market rate housing plan shall provide reasonable documentation that the requirements of Government Code Section 65915(h) or 65915.5, as appropriate, can be made.
11. Other requested information included on the City’s application forms.
12. Payment of any fee in an amount set by resolution of the City Council for City costs necessary to determine compliance of the application with State Density Bonus Law.
B. City Review of Application for State Mandated Density Bonus, Concessions, and Incentives. Any request for a density bonus, concessions, incentives, waivers, or parking reductions provided pursuant to Sections 18.17.040 and 18.17.050 shall be submitted concurrently with the filing of the planning application for the first discretionary permit required for the housing development and shall be processed, reviewed, and approved or denied by the decision-making body (Planning and Transportation Commission or City Council) concurrently with the below market rate housing plan required for the housing development. The applicant shall be informed whether the application is complete consistent with Government Code Section 65943. 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 code amendment, zone change, or other discretionary approval, or the waiver of a city ordinance or provisions of a city ordinance unrelated to development standards.
C. Eligibility for State Mandated Density Bonus, Concessions and Incentives, Waivers, and Parking Reductions. To ensure that an application for a housing development conforms with the provisions of State Density Bonus Law, the staff report presented to the decision-making body shall state whether the application conforms to the following provisions of State Density Bonus Law as applicable:
1. The housing development is eligible for a density bonus and any concessions, incentives, waivers, or parking reductions requested and has complied with requirements for the replacement of units as required by State Density Bonus Law.
2. If an incentive or concession is requested, any requested incentive or concession will result in identifiable and actual cost reductions to provide for affordable housing or costs or rents; except that, if a mixed-use development is requested, the application must instead meet all of the requirements of Government Code Section 65915(k)(2).
3. If the density bonus is based all or in part on donation of land, the requirements of Government Code Section 65915(g) have been met.
4. If the density bonus, incentive, concession, waiver, or parking reduction is based all or in part on the inclusion of a child care facility or condominium conversion, the requirements included in Government Code Section 65915(h) or 65915.5, as appropriate, have been met.
5. If a waiver is requested, the housing development project is eligible for a waiver, and the development standards for which a waiver is requested would have the effect of physically precluding the construction of the housing development at the densities or with concessions or incentives permitted.
D. Findings for Denial of Incentives, Concessions or Waivers.
1. Denial of Concessions and Incentives. The decision-making body may deny a concession or incentive only if it makes a written finding, supported by substantial evidence, of any of the following:
a. The proposed incentive or concession does not result in identifiable and actual cost reductions to provide for affordable housing costs, as defined in Health and Safety Code Section 50052.5, or for affordable rents, as defined in Health and Safety Code Section 50053, for the BMR density bonus units.
b. The concession or incentive would have a specific adverse impact upon public health or safety 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 low- and moderate-income households. For the purpose of this subsection, “specific adverse impact” means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified, written public health or safety standards, policies, or conditions as they existed on the date that the application for the housing development was deemed complete.
c. The concession or incentive would be contrary to State or Federal law.
2. Denial of Waivers. The decision-making body may deny a waiver only if it makes a written finding, supported by substantial evidence, of any of the following:
a. The waiver would have a specific adverse impact upon 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. For the purpose of this subsection, “specific adverse impact” means a significant, quantifiable, direct, and unavoidable impact, based on objective, and identified, written public health or safety standards, policies, or conditions as they existed on the date that the application was deemed complete.
b. The waiver would have an adverse impact on any real property that is listed in the California Register of Historical Resources.
c. The waiver would be contrary to State or Federal law.
3. Denial of Incentive or Bonus for Child Care Center. If the findings required by a child care center comply with the requirements of Government Code Section 65915(h), the decision-making body may deny a density bonus, incentive, or concession that is based on the provision of child care facilities only if it makes a written finding, based on substantial evidence, that the City already has adequate child care facilities. (Ord. 1612 § 1 (Exh. A), 2024; Ord. 1583 § 2 (Exh. A), 2022; Ord. 1438 § 4 (Exh. A (part)), 2011: Ord. 1416 § 4 (Exh. A (part)), 2010. Formerly 18.204.060)
18.17.070 Requirements for density bonus below market rate units.
In addition to any requirements included in Sections 18.17.040 and 18.17.050, density bonus BMR units shall conform to the following provisions applicable to below market rate units:
A. Below market rate unit standards (Section 18.16.050), except that for-rent density bonus BMR units that are affordable to very low- and low-income households that are not also BMR units required by Section 18.16.030 shall be affordable for fifty-five (55) years or as long a period of time as permitted by current law. All for-sale density bonus BMR units shall be affordable in perpetuity.
B. Compliance procedures (Section 18.16.060), except that the below market rate housing plan shall also include the provisions described in Section 18.17.040(A).
C. Eligibility for below market rate units (Section 18.16.080).
D. Owner-occupied below market rate units (Section 18.16.090).
E. Rental units (Section 18.16.100). (Ord. 1583 § 2 (Exh. A), 2022; Ord. 1438 § 4 (Exh. A (part)), 2011: Ord. 1416 § 4 (Exh. A (part)), 2010. Formerly 18.204.070)
18.17.080 Interpretation.
If any portion of this chapter conflicts with State Density Bonus Law or other applicable State law, State law shall supersede this chapter. Any ambiguities in this chapter shall be interpreted to be consistent with State Density Bonus Law. (Ord. 1583 § 2 (Exh. A), 2022)