Chapter 86.53
DENSITY BONUS FOR AFFORDABLE HOUSING DEVELOPMENTS

Sections:

86.53.010    Purpose and intent.

86.53.020    Applicability.

86.53.030    Definitions.

86.53.040    Density bonus affordability and longevity.

86.53.050    Density bonus calculations, justifications, incentives, concessions and location.

86.53.060    Donation of land.

86.53.070    Child care facilities.

86.53.080    Development standards.

86.53.090    Parking standards.

86.53.100    Appeals.

86.53.010 Purpose and intent.

The purpose of these regulations is to: (1) comply with State density bonus law (California Government Code Section 65915); (2) implement the Housing Element of the Coronado General Plan; and (3) better provide a broad range of affordable housing opportunities for the City’s residents. The regulations are intended to materially assist the housing industry in providing adequate and affordable shelter for all economic segments of the community and to provide a balance of housing opportunities for low-income, very low-income, and senior households, as well as moderate-income owners of condominium or planned developments as defined in Civil Code Section 1351, Subdivisions (f) and (k), respectively, throughout the City. It is intended that the affordable housing density bonus and any additional development incentive be available for use in all types of residential developments. It is also intended that these regulations implement the provisions of California Government Code Sections 65915 through 65918. It is further intended that these regulations will require any increase in density of residential developments to be distributed and constructed within the same development site as the market rate housing; however, in no event shall the number of residential units granted exceed 135 percent of the usual maximum density. (Ord 1973 § 1, 2005)

86.53.020 Applicability.

This chapter applies to any residential development of five or more dwelling units when the written request of an applicant proposes density beyond that permitted by the underlying zone in exchange for an agreement that a portion of the total dwelling units in the proposed development is reserved for low- or very low-income households, senior citizens or moderate-income families in a condominium or planned development. (Ord 1973 § 1, 2005)

86.53.030 Definitions.

The following terms are hereby defined for the purposes of this chapter:

A. “Affordable housing agreement” means an agreement between the applicant and the City guaranteeing the affordability of rental or ownership units to applicable income households for a period of not less than 30 years, and is in accordance with the provisions of this chapter.

B. “Affordable housing costs” are those amounts set forth in Section 50052.5 of the Health and Safety Code, as the same may be amended from time to time, or any State law replacing Section 50052.5.

C. “Appreciation” means the increase in value of a moderate income unit in a condominium or planned development project approved as a density bonus unit as determined by the difference between the original market value of the unit minus the price of the unit as sold to the first moderate income purchaser. If the value of the unit increases, the City and the initial purchaser shall divide the “appreciation” by respective percentage share with the City’s share equal to the percentage that the original sales price was less than fair market price at the time of original sale. So, if the original sales price was $200,000 for a unit with a fair market price of $300,000, the original unit sold for two-thirds or 66.67 percent of its fair market price and the City’s share of appreciation would be 33.33 percent.

D. “Child care facility” means a day nursery as defined in CMC 86.04.250.

E. “Concession” or “incentive” means:

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 that results in identifiable, financially sufficient, and actual cost reductions;

2. Approval of mixed use development 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; or

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

F. “Condominium project” means a project as defined by Section 1351(f) of the Civil Code, as the same may be amended from time to time.

G. “Density bonus,” for housing projects that have the requisite percentage of housing reserved for lower-income households, very low-income households or senior citizen housing developments, means a density increase of at least 20 percent, but not more than 35 percent, unless a lesser percentage is elected by the applicant, over the otherwise maximum allowable residential density under the applicable zoning ordinance and Land Use Element of the General Plan as of the date of application by the applicant to the City.

“Density bonus,” for housing projects that are condominium projects or planned developments in which at least 10 percent of the total dwelling units are reserved for persons and families of moderate income, means a density increase of at least five percent, but not more than 35 percent, unless a lesser percentage is elected by the applicant, over the otherwise maximum allowable residential density under the applicable zoning ordinance and Land Use Element of the General Plan as of the date of application.

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

I. “Families of low or moderate income” means persons or families whose income meets the requirements set forth in Health and Safety Code Section 50093, as the same may be amended from time to time, or any State law replacing Section 50093.

J. “Housing development” means one or more groups of projects for residential units with a minimum of five residential units, including a condominium project and a planned 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 Government Code Section 65863.4, as the same may be amended from time to time, or any State law replacing Section 65863.4, where the result of the rehabilitation would be a net increase in available residential units.

K. “Lower-income households” means households defined in Section 50079.5 of the Health and Safety Code, as the same may be amended from time to time, or any State law replacing Section 50079.5. At the time of the adoption of this chapter, Section 50079.5 defines “lower-income households” as those whose income is equal to or less than 80 percent of the area median income (“AMI”).

L. “Maximum allowable residential density” means the density allowed under the zoning ordinance, or if a range of density is permitted, means the maximum allowable density for the specific zoning range applicable to the project.

M. “Persons and families of moderate income” means persons and families defined in Section 50093 of the Health and Safety Code, as the same may be amended from time to time, or any State law replacing Section 50093. At the time of the adoption of this chapter, Section 50093 defines “moderate-income households” as those whose income does not exceed 120 percent of the area median income.

N. “Planned development,” “planned unit development” or “planned residential development” means a project as defined by Section 1351(k) of the Civil Code, and as defined by a planned community development in this title.

O. “Senior citizen housing development” means a project as defined by Section 51.3 of the Civil Code as the same may be amended from time to time, or any State law replacing Section 51.3.

P. “Very low-income households” means households defined in Section 50105 of the Health and Safety Code, as the same may be amended from time to time, or any State law replacing Section 50105. At the time of the adoption of this chapter, Section 50105 defines “very low-income households” as those whose income is equal to or less than 50 percent of the area median income. (Ord 1973 § 1, 2005)

86.53.040 Density bonus affordability and longevity.

A. Affordability in General. The affordable dwelling units proposed or constructed as defined in this chapter shall be subject to an affordable housing agreement, and such deed restrictions and other applicable documents, approved by the City Attorney, ensuring continued affordability of the dwelling units for a period of not less than 30 years or a longer period of time (if required by the construction or mortgage financing assistance program, mortgage insurance program, first-time home buyer’s program, rental subsidy program or any local, State and Federal laws, regulations or statutes). Affordability limits are established as follows:

1. Rental units targeted for lower-income households shall be affordable at a rent that does not exceed 30 percent of 60 percent of AMI.

2. Rental units targeted for very low-income households shall be affordable at a rent that does not exceed 30 percent of 50 percent of AMI.

Ownership units shall be made available only to households whose income does not exceed the limits for the targeted households for the duration of the affordable housing agreement.

B. Affordability for Moderate-Income Condominium or Planned Community Development Units. The City shall ensure that the initial occupant of each moderate-income unit that is directly related to the receipt of the density bonus in a condominium project or planned community development is a person or family of moderate income as defined in CMC 86.53.020(M). 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 its proportionate share of appreciation, which shall be used as required by Government Code Section 65915, as the same may be amended from time to time, or any applicable State law replacing Section 65915. The City’s share shall be equal to the percentage by which the initial sales price of the moderate-income household was less than the fair market value of the home at the time of initial sale. If there is any direct financial contribution from the City through participation in the cost of infrastructure, write-down of land costs, or subsidizing the cost of construction, the City may limit the amount of the appreciation upon resale for at least 30 years or more if required by the project funding source.

C. Affordability Covenants. Affordability shall be ensured by requiring that the applicant enter into an affordable housing agreement which shall be reviewed by the City Community Development Department and approved by the City Attorney and shall be recorded and run with the land. The 30-year or longer affordability period shall commence from the date that the final certificate of occupancy is issued, or the date of the recording of the affordable housing agreement, whichever shall last occur. (Ord 1973 § 1, 2005)

86.53.050 Density bonus calculations, justifications, incentives, concessions and location.

A. Density Bonus Calculations. Upon written request of an applicant through the processing of density bonus request in the manner of a “determination of development standards” per CMC 86.02.124, the Planning Commission shall grant a density bonus of at least 20 percent, but not more than 35 percent, and incentives or concessions as provided in this section when the applicant for the housing development agrees or proposes to construct at least any one of the following (note: The applicant shall also simultaneously process each and every other development application required by this title for the proposed project):

1. Ten percent of the total units of a housing development for lower-income households;

2. Five percent of the total units of a housing development for very low-income households;

3. A senior citizen housing development; or

4. Ten percent of the total dwelling units in a condominium project or planned development for persons and families of moderate income.

B. Additional Density Bonus.

1. If an applicant exceeds the percentages set forth in subsection A of this section, the applicant shall be entitled to an additional density bonus above 20 percent calculated as follows:

a. For each one percent increase above 10 percent in the percentage of units affordable to lower-income households, the density bonus shall be increased by one and one-half percent, up to a maximum of 35 percent for the total project;

b. For each one percent increase above five percent in the percentage of units affordable to very low-income households, the density bonus shall be increased by two and one-half percent, up to a maximum of 35 percent for the total project;

c. For each one percent above 10 percent in the percentage of units affordable to moderate-income households, the density bonus shall be increased by one percent, up to a maximum of 35 percent for the total project.

2. For the above calculation, all density bonus calculations resulting in fractions shall be rounded up to the next whole number.

C. Justification for Concessions and Incentives. In addition to all other requirements of the “determination of development standards” process per CMC 86.02.124, an applicant requesting a density bonus and/or development standard concession(s) or incentive(s) shall also show, using one of the following methods, that the waiver or modification is necessary to make the housing units economically feasible:

1. A development pro forma with the capital costs, operating expenses, return on investment, loan-to-value ratio and the debt coverage ratio, including the contribution(s) provided by any applicable subsidy program(s), and the economic effect created by the minimum 30-year use and income restrictions on the affordable housing units; or

2. An appraisal report indicating the value of the density bonus and of the incentive(s)/concession(s); or

3. A use of funds statement identifying the projected financing gap for the project with the affordable housing units. The analysis shall show how much of the funding gap is covered by the density bonus and how much by the incentive(s)/concession(s).

D. Concessions and Incentives.

1. When the Planning Commission grants a density bonus in accordance with this section, the Planning Commission shall grant the additional concession or incentive requested by the applicant and make all of the following findings, based upon substantial evidence, that:

a. The concession or incentive is required in order to provide for affordable housing costs or rents for the targeted units to be set as specified in CMC 86.53.040; and

b. The concession or incentive would not have a specific adverse impact [as defined in Government Code Section 65589.5(d)(2), as the same may be amended from time to time, or any applicable State law replacing Section 65589.5] upon the public health and safety or the physical environment and for which 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; and

c. The concession or incentive would not have a specific adverse impact on any real property that is listed in the California Register of Historical Resources.

2. Number of Incentives/Concessions. The applicant shall be entitled to receive the following number of incentives or concessions:

a. One incentive or concession for projects that include at least five percent of the total units for very low-income households, or at least 10 percent of the total units for lower-income households or persons and families of moderate income in a condominium or planned unit development.

b. Two incentives or concessions for projects that include at least 10 percent of the total units for very low-income households, or at least 20 percent of the total units for lower-income households or persons and families of moderate income in a condominium or planned community development.

c. Three incentives or concessions for projects that include at least 15 percent of the total units for very low-income households, or at least 30 percent of the total units for lower-income households or persons and families of moderate income in a condominium or planned community development.

E. The granting of a density bonus, incentive or concession shall not be interpreted, in and of itself, to require a General Plan amendment or zoning change. The request for such items shall be processed in the manner of a “determination of development standards” per CMC 86.02.124, in addition to every other applicable planning application as described in this title.

F. An applicant may submit a written request to the Community Development Department detailing the specific incentives or concessions that the applicant requests pursuant to this section.

G. 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.

H. All affordable units shall be of similar design and quality as the market rate units, including exteriors and floor plans.

I. All affordable units shall be dispersed throughout the housing development rather than clustered in a single area or building. (Ord 1973 § 1, 2005)

86.53.060 Donation of land.

When an applicant for a tentative subdivision map, parcel map, or other residential development donates land to the City that meets the requirements of this section, the applicant shall be entitled to a 15 percent increase above the otherwise maximum allowable residential density under the applicable zoning ordinance and Land Use Element of the General Plan for the entire development.

A. The developable acreage and zoning classification of the land must be sufficient to permit construction of units in an amount not less than 10 percent of the number of residential units of the proposed development;

B. The units shall be affordable to very low-income households; and

C. Any increase in the density required by this section shall be in addition to any increase in density provided to the applicant under CMC 86.53.050; provided, however, that the project shall not be allowed density bonuses under this section and under CMC 86.53.050 in excess of 35 percent combined. (Ord 1973 § 1, 2005)

86.53.070 Child care facilities.

When an applicant proposes to construct a housing development that conforms to the requirements of this title and includes a child care facility that will be located on the premises of, as part of, or adjacent to the project, the following shall apply:

A. The Planning Commission shall grant either of the following, unless a finding is made in accordance with subsection C of this section:

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 concession or incentive that contributes significantly to the economic feasibility of the construction of the child care facility.

B. The Planning Commission shall require the following as conditions of approving the housing development; these requirements shall be included in the affordable housing agreement:

1. The child care facility shall remain in operation for a period of time that is as long as or longer than the period of time during which the density bonus units are required to remain affordable pursuant to CMC 86.53.040; and

2. Of the children who attend the child care facility, the children of very low-income households, lower-income households, or families of moderate income shall equal a percentage that is equal to or greater than the percentage of dwelling units that are required for very low-income households, lower-income households, or families of moderate income in the proposed housing development pursuant to CMC 86.53.050(A) and (B).

C. The Planning Commission shall not be required to provide a density bonus or concession for a child care facility if it finds, based upon substantial evidence, that the City already has adequate child care facilities.

D. The density bonus allowed under this section shall be in addition to any density bonuses already given to the applicant pursuant to CMC 86.53.050 and 86.53.060. (Ord 1973 § 1, 2005)

86.53.080 Development standards.

A. The City shall not apply any development standard that will have the effect of precluding the construction of a development meeting the criteria of this title while at the same time at the densities or with the concessions or incentives permitted by this chapter.

B. All development standards of the underlying zone shall apply to density bonus projects unless one or more concessions have been granted.

C. Any discretionary actions for modification or waiver shall be processed as a “determination of development standards” per CMC 86.02.124 and each and every other development application required by this title for the proposed housing project.

D. Nothing in this chapter shall be interpreted to require the City to waive or reduce development standards if the waiver or reduction would have a specific adverse impact, as defined in Government Code Section 65589.5(d)(2), as the same may be amended from time to time, or any applicable State law replacing Section 65589.5, upon the health, safety, or the physical environment, and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact.

E. Nothing in this section shall be interpreted to require the City to waive or reduce development standards that would have an adverse impact on any real property that is listed in the California Register of Historical Resources. (Ord 1973 § 1, 2005)

86.53.090 Parking standards.

A. Upon request of the applicant for any housing development qualifying for a density bonus under this chapter, the following maximum parking standards shall apply, inclusive of handicapped and guest parking, for the entire housing development:

1. One on-site parking space per dwelling unit that has up to one bedroom;

2. Two on-site parking spaces per dwelling unit that has up to three bedrooms;

3. Two and one-half parking spaces per dwelling unit that has more than three bedrooms.

B. All parking calculations for the development resulting in a fraction shall be rounded up to the next whole number.

C. Parking may be provided by tandem parking and need not be covered or garaged, but may not be on-street parking.

D. An applicant may request additional parking incentives or concessions beyond those provided in this section pursuant to CMC 86.53.050(D). (Ord 1973 § 1, 2005)

86.53.100 Appeals.

The decision of the Commission shall become final 10 calendar days after the adoption of a resolution unless a notice of appeal to the City Council is filed with the City Clerk in accordance with Chapter 1.12 CMC. (Ord. 2025 § 35, 2011)