CHAPTER 12.48
DENSITY BONUS

SECTION:

12.48.010    Authority And Purpose

12.48.020    Applicability

12.48.030    Definitions

12.48.040    Eligibility For Density Bonus

12.48.050    Density Bonus Calculations

12.48.060    Land Donation

12.48.070    Condominium Conversion

12.48.080    Child Care Facility

12.48.090    Design, Distribution And Timing Of Affordable Housing Units

12.48.100    Requests For Incentives Or Concessions

12.48.110    Granting Of Incentives Or Concessions

12.48.120    Incentives Or Concessions

12.48.130    Continued Affordability Requirement

12.48.140    Density Bonus Application

12.48.150    Hold Harmless

12.48.160    Severability

12.48.170    Appeals

12.48.010 AUTHORITY AND PURPOSE:

The purpose of this chapter is to:

A.    Provide for the preservation and maintenance of the city’s affordable housing supply through the state mandated density bonus program, including incentives for the development of housing that is affordable to the types of households and qualifying residents identified in section 12.48.040.

B.    Encourage developers to include very low, lower and moderate income housing units in their proposed housing developments, as well as housing for seniors and child care facilities.

C.    Implement the requirements of state law (California Government Code section 65915 et seq.) and goals and policies set forth in the housing element of the city’s general plan. (Ord. 2014-77, 3-3-2014)

12.48.020 APPLICABILITY:

The provisions of this chapter are applicable in all residential zoning districts. (Ord. 2014-77, 3-3-2014)

12.48.030 DEFINITIONS:

The following definitions shall apply for the purposes of this chapter:

A.    "Affordable housing costs" means the amounts set forth in the Health and Safety Code sections 50052.5 and 50053, as may be amended.

B.    "Affordable housing unit" means a dwelling unit within a housing project which will be made available to and reserved for very low income households, lower income households or moderate income households at an affordable housing cost for the respective group(s).

C.    "Applicant" means any person, firm, partnership, association, joint venture, corporation, or any entity or combination of entities who seek residential property development permits or approvals from the city of Gonzales.

D.    "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.

E.    Civil Code; Government Code; Health and Safety Code. All code section references are to the California Codes, unless otherwise noted.

F.    "Common interest development" means a condominium project as defined by section 1351(f) of the Civil Code, or a planned development as defined by section 1351(k) of the Civil Code, as may be amended.

G.    "Concession(s)" or "incentive(s)" means:

1.    A modification in site development, zoning code requirements or architectural design criteria that exceeds 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, reduction in setback, square footage, and parking requirements that result in identifiable, financially feasible, and actual cost reductions.

2.    Other regulatory incentives or concessions proposed by the developer or the city that result in identifiable, financially feasible and actual cost reductions.

3.    Approval of mixed use zoning in conjunction with the housing project if nonresidential land uses would reduce the cost of the housing project, and the nonresidential land uses would be compatible with the housing project and existing or planned development in the area where the proposed housing development is located. If approval of mixed use zoning requires an amendment to the general plan, and/or to a specific plan, the applicant shall apply for such amendment(s) separately and shall pay all processing and preparation costs associated with such amendment(s).

H.    "Density bonus" means a density increase of at least five percent (5%), unless a lesser percentage is elected by the applicant, and no more than thirty five (35%) percent 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 of Gonzales.

I.    "Development standard" means a site or construction condition, including, but not limited to, a height limitation, a setback requirement, a floor area ratio, an onsite open-space requirement, or a parking ratio that applies to a residential development pursuant to any ordinance, general plan element, specific plan, charter, or other local condition, law, policy, resolution, or regulation.

J.    "Dwelling unit" means a dwelling designed and intended for residential occupancy by one household.

K.    "Housing development" means a development project for five (5) or more residential units, including a subdivision, multi-family dwellings or common interest development, as defined in section 1351 of the Civil Code. Housing developments consist of residential 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 multi-family dwelling, as defined in subdivision (d) of section 65863.4 of the California Government Code, where the result of the rehabilitation would be a net increase in available residential units.

L.    "Lower income households" means persons and families whose gross incomes are more than fifty percent (50%) of the median income but do not exceed eighty percent (80%) of the area median income, adjusted for family size, as defined in section 50079.5 of the Health and Safety Code, as may be amended from time to time.

M.    "Maximum allowable residential density" means the density allowed under the zoning ordinance 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 land use 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 land use element of the general plan, the general plan density shall prevail.

N.    "Mobilehome park" means a mobilehome 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.

O.    "Persons and families of moderate income" means persons and families whose gross incomes do not exceed one hundred twenty percent (120%) of the area median income, adjusted for family size, as defined in section 50093 of the Health and Safety Code, as may be amended from time to time.

P.    "Senior citizen housing development" means a project as defined by sections 51.3 and 51.12 of the Civil Code, as may be amended.

Q.    "Very low income households" means persons and families whose gross incomes are fifty percent (50%) or less of the area median income, adjusted for family size, as defined in section 50105 of the Health and Safety Code, as may be amended from time to time. (Ord. 2014-77, 3-3-2014)

12.48.040 ELIGIBILITY FOR DENSITY BONUS:

The city shall grant a density bonus, and incentives or concessions described in section 12.48.120, when an applicant for a housing development seeks and agrees to construct at least any one of the following:

A.    Five percent (5%) of the total units of a housing development for very low income households, as defined in section 50105 of the Health and Safety Code; or

B.    Ten percent (10%) of the total units of a housing development for lower income households, as defined in section 50079.5 of the Health and Safety Code; or

C.    A senior citizen housing development, as defined in sections 51.3 and 51.12 of the Civil Code, or mobilehome park that limits residency requirements based on age requirements for housing for older persons pursuant to section 798.76 or 799.5 of the Civil Code; or

D.    Ten percent (10%) of the total dwelling units in a common interest development as defined in section 1351 of the Civil Code, for persons and families of moderate income, as defined in section 50093 of the Health and Safety Code, provided that all units in the development are offered to the public for purchase. (Ord. 2014-77, 3-3-2014)

12.48.050 DENSITY BONUS CALCULATIONS:

The applicant shall elect whether the density bonus shall be awarded on the basis of section 12.48.040A, B, C, or D. All density calculations resulting in fractional units shall be rounded up to the next whole number. The granting of a density bonus shall not be interpreted, in and of itself, to require a general plan amendment, specific plan amendment, zoning change, or other discretionary approval.

A.    For housing development projects that meet the criteria of section 12.48.040A, the density bonus shall be calculated as follows:

Percentage of Very Low Income Units

Max. Density Bonus (% of Base Units)

5

20

6

22.5

7

25

8

27.5

9

30

10

32.5

11

35

B.    For housing development projects that meet the criteria of section 12.48.040B, the density bonus shall be calculated as follows:

Percentage of Low Income Units

Max. Density Bonus (% of Base Units)

10

20

11

21.5

12

23

13

24.5

14

26

15

27.5

16

29

17

30.5

18

32

19

33.5

20

35

C.    For housing development projects that meet the criteria of section 12.48.040C, the density bonus shall be twenty percent (20%) of the number of senior housing units.

D.    For housing development projects that meet the criteria of section 12.48.040D, the density bonus shall be calculated as follows:

Percentage of Moderate Income Units

Max. Density Bonus (% of Base Units)

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

Residential development projects incorporating a density bonus require review and approval by the planning commission; provided, however, that if the housing development project involves another permit or entitlement requiring city council approval, then the planning commission may recommend approval or deny the project. Decisions of the planning commission may be appealed to the city council pursuant to chapter 12.40 of the city’s zoning ordinance. (Ord. 2014-77, 3-3-2014)

12.48.060 LAND DONATION:

When an applicant for a tentative subdivision map, parcel map, or other residential development approval donates land to the city that meets the requirements of this section, the applicant shall be entitled to a fifteen percent (15%) increase above the otherwise maximum allowable residential density for the entire development.

A.    For each one percent (1%) increase above the minimum ten percent (10%) land donation, the density bonus shall be increased by one percent (1%), up to a maximum of thirty five percent (35%) as follows:

Percentage of Moderate Income Units

Max. Density Bonus (% of Base Units)

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

This density bonus shall be in addition to any increase in density allowed by section 12.48.040, up to a maximum combined density bonus of thirty five percent (35%) if the applicant seeks both the increase required pursuant to this section and section 12.48.040. When calculating the number of permitted density bonus units, any calculations resulting in fractional units shall be rounded up to the next whole number.

B.    Pursuant to California Government Code section 65915(g)(2)(A) through (H), as may be amended from time to time, an applicant shall be eligible for the increased density bonus described in this section if all of the following conditions are met:

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

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

3.    The transferred land is characterized by the following:

a.    It is at least one acre in size or of sufficient size to permit development of at least forty (40) units; and

b.    It has the appropriate general plan designation, is appropriately zoned with appropriate development standards for development at the density described in paragraph (3) of subdivision (c) of California Government Code section 65583.2; and

c.    It is or will be served by adequate public facilities and infrastructure.

4.    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, not later than the date of approval of the final subdivision map, parcel map, or residential development application seeking the density bonus, except that the city may subject the proposed development to subsequent design review to the extent authorized by subdivision (i) of California Government Code section 65583.2 if the design is not reviewed by the city prior to the time of transfer.

5.    The transferred land and the affordable units shall be subject to a deed restriction ensuring continued affordability of the units consistent with California Government Code section 65915(c)(1) and (2), which shall be recorded on the property at the time of the transfer.

6.    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 the developer.

7.    The transferred land shall be within the boundary of the proposed development or, if the city agrees, within one-quarter mile of the boundary of the proposed development.

8.    A proposed source of funding for the very low income units shall be identified not later than the date of approval of the final subdivision map, parcel map, or residential development application.

C.    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. (Ord. 2014-77, 3-3-2014)

12.48.070 CONDOMINIUM CONVERSION:

When an applicant seeking approval to convert apartments to a condominium project agrees to provide at least thirty three percent (33%) of the total units of the proposed condominium project to persons and families of low or moderate income as defined in section 50093 of the Health and Safety Code, or fifteen percent (15%) of the total units of the proposed condominium project to lower income households as defined in section 50079.5 of the Health and Safety Code, and agrees to pay reasonably necessary administrative costs incurred by the city pursuant to this section, the city shall either: (i) grant a density bonus, or (ii) provide other incentives of equivalent financial value. The city may place reasonable conditions on the granting of a density bonus or other incentives of equivalent financial value as it finds appropriate, including, but not limited to, conditions which assure continued affordability of units to subsequent purchasers who are persons and families of low and moderate income or lower income households. For this section, the following definitions apply:

A.    "Density bonus" means an increase in units of twenty five percent (25%) over the number of apartments to be provided within the existing structure or structures proposed for conversion.

B.    "Other incentives of equivalent financial value" shall not be construed to require the city to provide cash transfer payments or other monetary compensation but may include the reduction or waiver of requirements which the city might otherwise apply as conditions of conversion approval.

An applicant for approval to convert apartments to a condominium project may submit a preliminary proposal to the community development department prior to the submittal of any formal requests for subdivision map approvals. The city shall, within ninety (90) days of receipt of a written proposal, notify the applicant in writing of the manner in which it will comply with this section.

An applicant shall be ineligible for a density bonus or other incentives under this section if the apartments proposed for conversion constitute a housing development for which a density bonus or other incentives were previously provided.

Nothing shall require the city to approve a proposal to convert apartments to condominiums. (Ord. 2014-77, 3-3-2014)

12.48.080 CHILD CARE FACILITY:

When an applicant proposes to construct a housing development that conforms to the requirements of section 12.48.040 and includes a child care facility that will be located on the premises of, as part of, or adjacent to, the project, the city shall grant either of the following: (i) an additional density bonus for 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 (ii) an additional concession or incentive that contributes significantly to the economic feasibility of the construction of the child care facility.

The city shall require that as a condition of approving the housing development the following occur: (i) 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 the density bonus units are required to remain affordable pursuant to section 12.48.130, which condition shall run with the land and be recorded as a deed restriction prior to the issuance of any project building permits; and (ii) of the children who attend the child care facility, the children of very low income households, lower income households, or children of 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 pursuant to section 12.48.040.

In order to qualify for the density bonus provided by this section, the applicant shall submit the following to the director of community development: (i) a financial report (pro forma) for the proposed child care facility, subject to the approval of the director of community development; and (ii) security as required by the director of community development, such as a cash deposit, performance bond, or letter of credit, to ensure that the child care facility remains operational for the period of time described above.

Notwithstanding any requirement of this section, the city 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 community has adequate child care facilities. (Ord. 2014-77, 3-3-2014)

12.48.090 DESIGN, DISTRIBUTION AND TIMING OF AFFORDABLE HOUSING UNITS:

Unless otherwise granted an exception by the director of community development, affordable housing units shall be constructed prior to or concurrently with market-rate units. The affordable housing units shall be integrated into the residential development project and be comparable in infrastructure (including sewer, water and other utilities), construction quality and exterior design to the market-rate units. The affordable housing units shall also comply with the following criteria:

A.    Rental Housing Projects. When affordable housing units are required in rental housing projects, the units should be integrated with the project as a whole. All affordable housing units shall reflect the range and numbers of bedrooms provided in the project as a whole, and shall not be distinguished by design, construction, or materials. All affordable housing units shall be reasonably dispersed throughout the project.

B.    Owner-Occupied Housing Projects. When affordable housing units are required in owner-occupied housing projects, the units should be integrated with the project as a whole. Affordable housing units may be smaller in aggregate size and have different interior finishes and features than market-rate units so long as the interior features are durable, of good quality and consistent with contemporary standards for new housing. All affordable housing units shall reflect the range and numbers of bedrooms provided in the project as a whole. All affordable housing units shall be reasonably dispersed throughout the project.

No building permits shall be issued for market-rate units until permits for all affordable housing units have been obtained, unless affordable housing units are to be constructed in phases pursuant to a plan approved by the city.

Market-rate units will not be inspected for occupancy until all affordable housing units have been constructed, unless affordable housing units are to be constructed in phases pursuant to a plan approved by the city. (Ord. 2014-77, 3-3-2014)

12.48.100 REQUESTS FOR INCENTIVES OR CONCESSIONS:

An applicant for a density bonus pursuant to section 12.48.040 may submit to the city a proposal for the specific incentives or concessions that the applicant requests pursuant to this section. The city shall grant the concession or incentive requested by the applicant unless the city makes a written finding, based upon substantial evidence, of any of the following:

A.    The concession or incentive is not required in order to provide for affordable housing costs, as defined in section 50052.5 of the Health and Safety Code, or for rents for the targeted units to be set as specified in section 12.48.130;

B.    The concession or incentive would have a specific adverse impact, as defined in paragraph (2) of subdivision (d) of section 65589.5, upon public health and safety or the physical environment or on any real property that is listed in the California Register of Historical Resources 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.

C.    The concession or incentive would be contrary to state or federal law. (Ord. 2014-77, 3-3-2014)

12.48.110 GRANTING OF INCENTIVES OR CONCESSIONS:

The granting of a concession or incentive shall not be interpreted, in and of itself, to require a general plan amendment, specific plan amendment, zoning change, or other discretionary approval. If the conditions of section 12.48.040 are met by the applicant, the following incentives or concessions may be granted:

A.    One incentive or concession for projects that include at least ten percent (10%) of the total units affordable to lower income households; or at least five percent (5%) of the total units affordable to very low income households; or at least ten percent (10%) of the total units affordable to persons and families of moderate income in a common interest development.

B.    Two (2) incentives or concessions for projects that include at least twenty percent (20%) of the total units affordable to lower income households; or at least ten percent (10%) of the total units affordable to very low income households; or at least twenty percent (20%) of the total units affordable to persons and families of moderate income in a common interest development.

C.    Three (3) incentives or concessions for projects that include at least thirty percent (30%) of the total units for lower income households; at least fifteen percent (15%) for very low income households, or at least thirty percent (30%) for persons and families of moderate income in a common interest development. (Ord. 2014-77, 3-3-2014)

12.48.120 INCENTIVES OR CONCESSIONS:

A.    For the purposes of this chapter, concession or incentive may mean 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, resulting in identifiable, financially sufficient, and actual cost reductions; or

2.    A reduction in setback and square footage requirements; or

3.    A reduction in the ratio of vehicular parking spaces that would otherwise be required that results in identifiable, financially sufficient and actual cost reductions.

4.    Approval of mixed use zoning in conjunction with the housing project if commercial, office, industrial, or other land uses will reduce the development 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.

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

B.    Financial Incentives. Nothing in this section shall be construed to 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.

C.    Density Bonus Parking Ratios. Upon the request of an applicant, the city shall require a vehicular parking ratio, inclusive of handicapped and guest parking, of a development meeting the criteria of section 12.48.040, that exceeds the following ratios:

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

2.    Two (2) to three (3) bedrooms: two (2) on-site parking spaces.

3.    Four (4) and more bedrooms: two and one-half (2.5) parking spaces.

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.

D.    Development Standards and Density Bonus Compatibility. The city shall not apply any development standard that will have the effect of physically precluding the construction of a development meeting the criteria of section 12.48.040 at the densities or with the concessions or incentives permitted by this chapter.

E.    Waiver of Development Standards. An applicant may submit to the city a proposal for the waiver or reduction of development standards that will have the effect of physically precluding the construction of a development meeting the criteria of section 12.48.040 at the densities or with the concessions or incentives permitted under this section, and may request a meeting with the city. If a meeting is requested, the director of community development shall meet with the applicant within fifteen (15) working days from the date of receipt of the request. The waiver or reduction of development standards shall comply with the following conditions and requirements:

1.    Nothing in this section 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 paragraph (2) of subdivision (d) of California Government Code section 65589.5, upon health, safety, or the physical environment, and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact.

2.    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 or to grant any waiver or reduction that would be contrary to state or federal law.

A proposal for the waiver or reduction of development standards pursuant to this subdivision shall neither reduce nor increase the number of incentives or concessions to which the applicant is entitled pursuant to section 12.48.100. (Ord. 2014-77, 3-3-2014)

12.48.130 CONTINUED AFFORDABILITY REQUIREMENT:

A.    An applicant shall agree to, and the city shall ensure, continued affordability of all low and very low income units that qualified the applicant for the award of a density bonus for thirty (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.

1.    Rental units for very low and lower income density bonus units shall be set at an affordable rent as defined in section 50053 of the Health and Safety Code.

2.    Ownership units shall be available at an affordable housing cost as defined in section 50052.5 of the Health and Safety Code.

B.    Occupant Income Restrictions. An applicant shall agree to confirm, and the city shall ensure, that the initial occupants of moderate income units that are directly related to the receipt of the density bonus in a common interest development, as defined in section 1351 of the Civil Code, are persons and families of moderate income, as defined in section 50093 of the Health and Safety Code, and that the units are offered at an affordable housing cost, as that cost is defined in section 50052.5 of the Health and Safety Code. Additionally, the following criteria apply:

1.    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 B1a of this section and its proportionate share of appreciation, as defined in subsection B1b of this section, which amount shall be used within five years for any purposes described in subdivision (e) of section 33334.2 of the Health and Safety Code that promote home ownership.

a.    For purposes of this section, 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 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.

b.    For purposes of this section, the local government’s proportionate share of appreciation shall be equal to the ratio of the local government’s initial subsidy to the fair market value of the home at the time of initial sale.

2.    Where there is a direct financial contribution to a housing development through participation in cost of infrastructure, write-down of land costs, or subsidizing the cost of construction, the city shall assure continued availability for low and moderate income units for thirty (30) years.

C.    Affordable Housing Agreement. Approvals under this chapter shall run with the land and shall be binding on future owners and/or renters of the restricted units. With recordation of a final map for subdivision projects, or prior to issuance of the first building permit for nonsubdivision projects, the developer shall enter into a density bonus housing agreement with the city, or with another entity designated by the city, which subject the restricted units to the provisions of this chapter for a period of thirty (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.

1.    Affordable housing agreements entered with an applicant pursuant to this section shall be in a form acceptable to the city attorney and shall contain the following minimum requirements:

a.     The number, location, and affordability level of all density bonus units approved.

b.     A description of the density bonus units including the number of bedrooms, size, and unit type (i.e., detached single-family or attached multi-family).

c.     A schedule for compliance with project requirements and construction of density bonus units. Unless otherwise granted an exception by the director of community development, affordable housing units shall be constructed prior to or concurrently with market-rate units. Restrictions on the sale of density bonus units to ensure that the initial occupants are qualified within the appropriate income categories.

d.     Restrictions on sales prices to ensure affordability of density bonus units to the targeted income category.

e.     Resale restrictions that ensure continued affordability of density bonus units for a minimum period of thirty (30) years and require agreements with qualified buyers of density bonus units consistent with subsection C3 of this section.

f.     Provisions for monitoring and reporting to ensure compliance with the requirements of this chapter and the terms of the affordable housing agreement.

g.     Provisions for default with the terms of the agreement including remedial actions that may be taken to correct any deficiencies.

2.    When title to a density bonus unit approved pursuant to this chapter is transferred to an eligible buyer, an affordable housing agreement shall be entered with the buyer. Entering an agreement with a buyer will relieve the applicant from the initial agreement pursuant to subsection C1 of this section.

3.    Affordable housing agreements entered with an eligible buyer pursuant to this section shall be in a form acceptable to the city attorney and shall contain the following minimum requirements:

a.     A description of the density bonus unit(s).

b.     Occupancy and income restrictions applicable to the property restriction on rental of the subject unit(s). Terms and restrictions on re-sale or transfer of the subject property.

c.    Terms of re-sale or transfer of the property consistent with California Government Code section 65915(c).

d.     Buyers insurance and lender information. (Ord. 2014-77, 3-3-2014)

12.48.140 DENSITY BONUS APPLICATION:

An applicant who is seeking a density bonus for a housing development shall submit to the director of community development the following information:

A.    Vicinity map and preliminary site plan, drawn to scale, including building footprints, driveway and parking layout. The site plan should show the location of all base units and those units qualifying for a density bonus.

B.    A narrative description of the housing project, including the following:

1.    The zoning and general plan designations and assessor’s parcel number(s) of the project site;

2.    The number of base units permitted under the general plan and zoning;

3.    The number of qualifying units based on the density bonus criteria of this chapter;

4.    The total number of units proposed in the project (base units plus density bonus units);

5.    A breakdown of units proposed for very low, low, and moderate income, senior citizen, and/or market-rate units;

6.    A description of the concessions or incentives requested, including an explanation as to why the incentive(s) is necessary to provide the affordable housing units;

7.    Proposed rent schedules and/or sale prices;

8.    A development pro-forma with the capital costs, operation expense, 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 effects created by the minimum thirty (30) year use and income restriction on the affordable units;

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

10.    A use of funds statement identifying the financing gaps for the housing development with the affordable housing units. The analysis shall show how the funding gap relates to the density bonus and to the incentive(s)/concession(s).

C.    Information demonstrating that appropriate and sufficient infrastructure capacity (e.g., water, sewer, roadway) and water supply are available to serve the project at the proposed density.

D.    Any additional information as may be requested by the director of community development to evaluate the request for a density bonus or incentive(s). This additional information may include, but is not limited to, financial studies.

E.    The director may direct, at the applicant’s expense, that an independent analysis be conducted of the project’s costs, revenues, and property value in order to determine the necessity for any requested density bonus and/or incentive. (Ord. 2014-77, 3-3-2014)

12.48.150 HOLD HARMLESS:

The developer of a qualifying project shall defend, indemnify and hold the city, its officials, officers, and employees harmless from any and all claims of damages or injuries arising from developers obtaining entitlements and permits, developer’s construction, maintenance, operation, use or sale of the project, or any act or omission of developer, its officers, employees or agents, and from any and all expenses, liabilities, costs and reasonable attorney fees incurred on account of any claims, action, or proceeding brought against the city, its officials, officers, and employees in connection with the project. (Ord. 2014-77, 3-3-2014)

12.48.160 SEVERABILITY:

If any section, subsection, clause or phrase of this chapter is for any reason held to be invalid, such decision shall not affect the remaining portions of this chapter. The city council hereby declares that it would have passed the ordinance codified in this chapter and each section, subsection, sentence, clause and phrase thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses and phrases be declared invalid. (Ord. 2014-77, 3-3-2014)

12.48.170 APPEALS:

Any appeal relating to density bonuses, incentives, concessions, or waivers/modifications of development standards shall be addressed in a manner as described in chapter 12.40. (Ord. 2014-77, 3-3-2014)