18.52.040   GENERAL DENSITY BONUS.
   .010   General. A Housing Development requesting a General Density Bonus, Incentives and/or a Reduced Parking Ratios shall comply with the following requirements: 
      .0101   Minimum Project Size. The Housing Development, without the Density Bonus, shall be a minimum of five (5) units.
      .0102   Construction of Affordable Units. Affordable Units shall be constructed concurrently with other units unless both the City and the applicant agree within the Housing Incentives Agreement to an alternative schedule for development.
      .0103   Rental Housing
         .01   Length of Affordability. Affordable Units for Low and Very Low Income Households shall remain restricted to an Affordable Rent for a period of fifty five (55) years or a longer period of time if required by the construction or mortgage financing assistance program, mortgage insurance program, rental subsidy program, or pursuant to the requirements for an Affordable Rental Housing Development as specified in Section 18.52.080 (Affordable Rental Housing Development).
         .02   Rents. Rents for the lower-income Density Bonus Units shall be set at an Affordable Rent except as provided in Subsection 18.52.040.030.0308 of this section.
         .03   Professional Management. The Housing Incentive Agreement for all rental Housing Development shall include a requirement for Professional Management to provide for the continued maintenance of the property, including, but not limited to the following:
            (a)   For any Housing Development with 16 or more units, a full-time, on-site resident manager shall be exclusively employed to manage the Housing Development.
            (b)   Professional Management shall monitor the use of parking spaces within the Housing Development to ensure that parking spaces are available, maintained and used in accordance with the terms of the Housing Incentive Agreement.
            (c)   Professional Management shall ensure that the Housing Development is maintained in a manner that is consistent with the standards of the Anaheim Municipal Code.
            (d)   Professional Management shall ensure that first priority is given to people who live or work in the City during the tenant selection process in accordance with the terms of the Housing Incentive Agreement.
      .0104   For-Sale Housing.  An applicant for a Common Interest Development that includes a Density Bonus shall ensure that the initial occupant of the Affordable Units are persons and families of very low, low, or moderate income, as required, and that the Affordable Units are offered at an Affordable Housing Cost. The City shall enforce an equity-sharing agreement, unless it is in conflict with the requirements of another public funding source or law.  The following shall apply to the equity-sharing agreement:
         .01   Upon resale, the seller of the unit shall retain the value of any improvements, the down payment, and the seller' proportionate share of appreciation.  The local government shall recapture any initial subsidy, if applicable, and its proportionate share of appreciation, which shall then be used within five years for any of the purposes described in Section 33334.2(e) of the California Health and Safety Code that promote homeownership.
         .02   The city's initial subsidy, if applicable, shall be equal to the fair market value of the home at the time of initial sale minus the initial sale price to the Very Low Income Households, Low Income Household or Moderate Income Households, as applicable, 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.
         .03   The City's proportionate share of appreciation shall be equal to the ratio of the initial subsidy, if any, to the fair market value of the home at the time of initial sale.
         .04   The Housing Incentives Agreement shall include the provisions required by Section 65916 of the California Government Code.   
   .020   Density Bonus Calculations.  A Density Bonus shall be calculated as follows:
      .0201   Percentage. The percentage of Affordable Units is the number of Affordable Units divided by the total number of units in the Housing Development (without including any Density Bonus Units granted pursuant to this chapter).
      .0202   Number of Density Bonus Units. The number of units granted by the Density Bonus is the applicable percentage set forth in Section 18.53.040.030 multiplied by the total number of units in the Housing Development (without a Density Bonus).
      .0203   Fractional Units. All Density Bonus calculations resulting in fractional units shall be rounded up to the next whole number.
   .030   Types of Affordable Units.  The City shall approve a Density Bonus and provide Incentives and/or a Reduced Parking Ratios, as described in this chapter, when an applicant for a Housing Development seeks and agrees to construct a Housing Development that will contain at least one of the following:
      .0301   Very Low Income. A Housing Development in which at least five percent (5%) of the total units of the Housing Development are Affordable Units to Very Low Income Households, shall be eligible for a Density Bonus as shown in Table 52-A (Very Low Income Density Bonus).
 
Table 52-A
VERY LOW INCOME DENSITY BONUS
Percentage Very Low Income Units
Percentage Density Bonus
5
20
6
22.5
7
25
8
27.5
9
30
10
32.5
11
35
 
      .0302   Lower Income. A Housing Development in which at least ten percent (10%) of the total units of the Housing Development are Affordable Units to Lower Income Households, shall be eligible for a Density Bonus as shown in Table 52-B (Lower Income Density Bonus).
 
Table 52-B
LOWER INCOME DENSITY BONUS
Percentage Lower Income Units
    Percentage Density Bonus
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
 
      .0303   Moderate Income. A Common Interest Development in which at least ten percent (10%) of the total units are Affordable Units to Moderate Income Households, provided that all units in the development are offered to the public for purchase, shall be eligible for a Density Bonus as shown in Table 52-C (Moderate Income Density Bonus). Rental Housing Developments targeted for Moderate Income Households are not eligible for a Density Bonus.
 
Table 52-C
MODERATE INCOME DENSITY BONUS
Percentage Moderate Income Units
Percentage Density Bonus
10
5
11
6
12
7
13
8
14
9
15
10
16
11
17
12
18
13
19
14
20
15
21
16
22
17
23
18
24
19
25
20
26
21
27
22
28
23
29
24
30
25
31
26
32
27
33
28
34
29
35
30
36
31
37
32
38
33
39
34
40
35
 
      .0304   Senior Citizen Housing Development.  A Senior Citizen Housing Development shall be eligible for a twenty percent (20%) Density Bonus, unless otherwise prohibited by state and/or federal law.
      .0305   Specialized Housing Developments. A Housing Development for Transitional Foster Youth, Disabled Veterans, or Homeless Persons, in which at least ten percent (10%) of the total units are provided at the same affordability level as very low income units shall be eligible for a twenty percent (20%) Density Bonus. Such Housing Developments shall be subject to a recorded affordability restriction of 55 years,
      .0306   Student Housing Developments. A Housing Development in which at least twenty percent (20%) of the total units are for Lower Income Students shall be eligible for a thirty-five percent (35%) Density Bonus, if all of the following requirements are met:
         .01   The term "unit" as used in this subsection shall mean one (1) rental bed and its pro rata share of associated common area facilities. The units described in this subsection shall be subject to a recorded affordability restriction of 55 years.
         .02    All units in the student Housing Development shall be used exclusively for undergraduate, graduate, or professional students enrolled full time at an institution of higher education accredited by the Western Association of Schools and Colleges or the Accrediting Commission for Community and Junior Colleges. As a condition of receiving a certificate of occupancy, the developer shall provide evidence to the City that the developer has entered into an operating agreement or master lease with one or more institution(s) of higher education, demonstrating that all units of the student Housing Development will be occupied with students from that institution(s). If, in any subsequent year, there are not sufficient students enrolled in such institution to fill all units in the student Housing Development, the required operating agreement or master lease shall be deemed to be in compliance.
         .03    The rent provided in the applicable units shall be calculated at thirty percent (30%) of sixty five percent (65%) of the area median income for a single-room occupancy unit type.
         .04   The development shall provide priority for the applicable Affordable Units for Lower Income Students experiencing homelessness. A homeless service provider, as defined in Section 103577 of the California Health and Safety Code, or institution of higher education that has knowledge of a person's homeless status may verify a person's status as homeless.
      .0307   One Hundred Percent Affordable Housing Development. A Housing Development in which one hundred percent (100%) of the total units, exclusive of a manager's unit, are for Lower Income Households, except that up to twenty percent (20%) of the total units may be for moderate-income households, shall be eligible for a Density Bonus of an eighty percent (80%) of the total number of lower income units. Additionally, no maximum density controls shall be imposed if the Housing Development is located within one-half mile of a Major Transit Stop.  Such Housing Development shall comply with all of the following:
         .01   The rent for at least twenty percent (20%) of the units in the development shall be set at an Affordable Rent.
         .02   The rent for the remaining units in the development shall be set at an amount consistent with the maximum rent levels for a Housing Development that receives an allocation of state or federal low-income housing tax credits from the California Tax Credit Allocation Committee.   
      .0308   Redevelopment of Existing Dwelling Units. A Housing Development is ineligible for a Density Bonus, Incentive, Reduced Parking Ratio or any other concessions under this chapter if the Housing Development involves redevelopment of existing rental dwelling units, or existing rental dwelling units that have been vacated or demolished in the five-year period preceding the date of the Housing Incentive Application, that have been subject to a recorded covenant, ordinance, law, or any other form of rent or price control that restricts rents to levels affordable to persons and families of lower or very low income or that have been occupied by Lower or Very Low Income Households, unless the proposed Housing Development replaces those units and either of the following applies:
         .01   The proposed Housing Development, inclusive of the units replaced, contains Affordable Units at the percentages set forth in Section 18.52.040 (General Density Bonus) of this chapter.
         .02   Each unit in the development, exclusive of a manager's unit, is affordable to, and occupied by, either a Lower or very low income household.
         .03   Replacement Units. Dwelling units replaced under this subsection shall comply with Section 65915(c)(3)(B) and (C) of California Government Code.
   .040   Multiple Types of Affordable Units. If a Housing Development includes multiple types of Affordable Units, the applicant shall choose a single type of Affordable Unit to calculate the Density Bonus.  Different types of Affordable Units may be combined as follows:
      .0401   Very Low Income Units. Units that are affordable to Very Low Income Households may be calculated according to Table 52-B (Lower Income Density Bonus); or, if the units are in a Common Interest Development, the units may be calculated according to Table 52-C (Moderate Income Density Bonus).
      .0402   Lower Income Units. Units that are affordable to Lower Income Households and are in a Common Interest Development may be calculated according to Table 52-C (Moderate Income Density Bonus); if the units are not affordable to Very Low Income Households, they shall not be calculated according to Table 52-A (Very Low Income Density Bonus).
      .0403   Moderate Income Units. Units in a Common Interest Development that are affordable to Moderate Income Households shall only be calculated according to Table 52-C (Moderate Income Density Bonus). A Density Bonus is not applicable to rental units for Moderate Income Households.
   .050   Lesser Density Bonuses. In cases where the applicant requests a density increase less than that identified in this section, no reduction will be allowed in the number of Affordable Units required.  (Ord. 5920 § 1 (part); June 8;  Ord. 6041 § 1 (part); November 13, 2006:  Ord. 6101 § 52 (part); April 22, 2008:  Ord. 6489 § 1 (part); July 14, 2020.)