A. Definitions.
1. Community Benefit. The provision of the Community Benefit Affordable Units in conformance with Subsection C. Community Benefit Incentives below.
2. Community Benefit Affordable Units. The affordable dwelling units that are required under this Section that, when added to the affordable dwelling units required under State Density Bonus Law, achieve an affordability of 15% of the total number of dwelling units in the project.
B. Residential Density. In RLD, RMD, MU-N, MU-1, and MU-2 zoning districts, the residential density may be increased as defined below.
1. Community Benefit. If a project incorporates community benefits, residential density may be increased pursuant to Subsection K. Community Benefit Incentives, as follows:
a. Up to 50 dwelling units per acre (one unit per 871 square feet of lot area); or
b. Up to 65 dwelling units per acre (one unit per 670 square feet of lot area) on lots identified for Transit Oriented Development as depicted in Map 4-1 or located within one-half mile of a "major transit stop" or within a "transit priority area" as defined under § 450.216 or § 450.322 of Title 23 of the Code of Federal Regulations; or
c. A density as allowed by an Abutting Jurisdiction up to 65 dwelling units per acre (one unit per 670 square feet of lot area) on a split jurisdiction lot.
2. Community Benefit Density and State Density Bonus. If the project qualifies for a Community Benefit Density , and will also receive a density bonus by virtue of the City's implementation of State Density Bonus Law (Chapter 17.580: Density Bonuses and Other Bonus Incentives), then the maximum permitted residential density will be determined by applying the State Density Bonus Law's percentage density increase for the project, as determined by the City under Chapter 17.580: Density Bonuses and Other Bonus Incentives, to the Community Benefit Density, as applicable, rather than to the base density. The use of the Community Benefit Density as the base density for such limited purpose nor the increase in total affordability resulting from the Community Benefit Affordable Units required by the City under Subsection C. will be deemed to entitle the project to receive any additional or modified incentive or concession or waiver or reduction of development standards under State Density Bonus Law other than those that the project would have been entitled to receive under Chapter 17.580: Density Bonuses and Other Bonus Incentives using the underlying zone's base density. However, the City may, in its sole discretion, grant such additional incentives, concessions, and waivers and reductions in development standards.
C. Replacement of Dwelling Units.
1. No project shall result in a reduction in the number of dwelling units on the project site, including dwelling units that have been vacated or demolished in the five-year period preceding the application submittal date for the project. All dwelling units removed or destroyed by the project must be replaced in the project with the same number of dwelling units.
2. In addition, an applicant shall be ineligible for a Community Benefit Density Bonus if the project is proposed on property that includes a parcel or parcels on which rental dwelling units are or, if the dwelling units have been vacated or demolished in the five-year period preceding the application, have been, subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of lower or very low income; or subject to any other form of rent or price control through a public entity's valid exercise of its police power; or occupied by lower or very low income households, unless the proposed project replaces those units at the same level of income and affordability.
a. If any such dwelling units are occupied on the date of application, the proposed project shall provide at least the same number of units of equivalent size to be made available at affordable rent or affordable housing cost to, and occupied by, persons and families in the same or lower income category as those households in occupancy. If the income category of the household in occupancy is not known, it shall be rebuttably presumed that lower income renter households occupied these units in the same proportion of lower income renter households to all renter households within the City, as determined by the most recently available data from the United States Department of Housing and Urban Development's Comprehensive Housing Affordability Strategy database.
b. For unoccupied dwelling units in a project with occupied units, the proposed project shall provide units of equivalent size to be made available at affordable rent or affordable housing cost to, and occupied by, persons and families in the same or lower income category as the last household in occupancy. If the income category of the last household in occupancy is not known, it shall be rebuttably presumed that lower income renter households occupied these units in the same proportion of lower income renter households to all renter households within the City, as determined by the most recently available data from the United States Department of Housing and Urban Development's Comprehensive Housing Affordability Strategy database.
c. All replacement calculations resulting in fractional units shall be rounded up to the next whole number. If the replacement units will be rental dwelling units, these units shall be subject to a recorded affordability restriction for at least 55 years. If the proposed development is for-sale units, the replacement units shall be subject to Subsection L.3.b.
D. Community Benefit Incentive. The Community Benefit incentive shall be implemented as follows:
1. Community Benefit Definition.
a. A minimum of 15% of the total dwelling units in the housing development project, as determined pursuant to Subsection A. must be affordable. The total affordable units required under this Subsection C.1. consist of the affordable units required under Chapter 17.580: Density Bonuses and Other Bonus Incentives and the Community Benefit Affordable Units required as a condition of receiving the Community Benefit residential density. All calculations under this paragraph resulting in fractional units shall be rounded up to the next whole number, provided however, that if a calculation results in a fraction less than one-half, the applicant has the option to (i) provide an additional Community Benefit Affordable Unit or (ii) pay an In-Lieu Fee equal to the percentage represented by the fractional Community Benefit Affordable Unit multiplied by the applicable In-Lieu Fee described in Subsection E.1.
b. As a condition of receiving the Community Benefit residential density provided by Subsection A., the sizes of the affordable units comprising the total affordability described in Subsection C.1.a. of this section must be in the same proportion as the sizes of the market units in the project.
c. The Community Benefit Affordable Units must be provided as dwelling units that are offered at affordable housing cost to and occupied by households with gross annual incomes, determined in accordance with Title 25 of the Cal. Code of Regulations, § 6914, that do not exceed the following income categories. The term "Area Median Income" means the Los Angeles County Median Income published annually by the California Department of Housing and Community Development. Area Median Income shall be adjusted to reflect the number of persons in the household.
i. Very Low Income means household income that does not exceed 50% of Area Median Income.
ii. Low Income means household income that is greater than 50% of Area Median Income and does not exceed 80% of Area Median Income.
iii. Workforce means household income that is greater than 80% of Area Median Income and does not exceed 129% of Area Median Income.
2. Affordable Housing Cost. Housing cost of the Community Benefit Affordable Units shall not exceed the following affordable housing cost:
a. Rental Units. In the case of rental units, affordable housing cost is rent determined in accordance with Title 25 of the Cal. Code of Regulations, § 6918 that does not exceed the applicable percentage of Area Median Income, adjusted for household size appropriate to the unit. Household size appropriate for the unit is defined as the number of bedrooms in the unit plus one.
i. Rent for Very Low Income units shall not exceed 30% of 50% of Area Median Income adjusted for household size appropriate to the unit.
ii. Rent for Low Income units shall not exceed 30% of 60% of Area Median Income adjusted for household size appropriate to the unit.
iii. Rent for Workforce units shall not exceed 30% of 129% of Area Median Income adjusted for household size appropriate to the unit.
b. Owner-Occupied Units. In the case of owner-occupied units, affordable housing cost is housing cost determined in accordance with Title 25 of the Cal. Code of Regulations, § 6920 that does not exceed the applicable percentage of Area Median Income, adjusted for household size appropriate to the unit. Household size appropriate for the unit is defined as the number of bedrooms in the unit plus one.
i. Affordable housing cost for Very Low Income units shall not exceed 30% of 50% of Area Median Income adjusted for household size appropriate to the unit.
ii. Affordable housing cost for Low Income units shall not exceed 30% of 70% of Area Median Income adjusted for household size appropriate to the unit.
iii. Affordable housing cost for Workforce units shall not exceed 35% of 129% of Area Median Income adjusted for household size appropriate to the unit.
3. Affordability Period. The Community Benefit Affordable Units will be subject to an affordability restriction for the following periods:
a. Rental Units. Rental units must remain affordable to and occupied by income-qualifying households for a period of at least 55 years.
b. Owner-Occupied Units. Owner-occupied units will be subject to occupancy and resale restrictions for a period of at least 55 years. However, the owner will have the option of exercising a buy-out in accordance with the terms of an equity sharing agreement with the City.
4. First-Time Homebuyer. Owner-occupied Community Benefit Affordable Units must be offered for sale to first-time homebuyers, who are defined as follows: an individual or his or her spouse who has not owned a home during the three-year period prior to the date of purchase of the unit. The term first-time homebuyer also includes an individual who is a displaced homemaker or single parent who has only owned a home with a former spouse while married. A displaced homemaker is defined as an individual who: (a) is an adult; (b) has not worked full-time and full-year in the labor force for a number of years but has, during such years, worked primarily without remuneration to care for the home and family; and (c) is unemployed or underemployed and is experiencing difficulty in obtaining or upgrading employment. An individual shall not be excluded from consideration as a first-time homebuyer on the basis that the individual owns or owned, as a principal residence during the three-year period, a dwelling unit whose structure is not permanently affixed to a permanent foundation in accordance with local or other applicable regulations or is not in compliance with State, local, or model building codes, or other applicable codes, and cannot be brought into compliance with the codes for less than the cost of constructing a permanent structure.
E. Community Benefit Housing Plan.
1. At the times and in accordance with the standards and procedures set forth in the Regulations, the applicant shall:
a. Submit a Community Benefit Housing Plan for review and approval by the Director, setting forth in detail the manner in which the provisions of this Section will be implemented for the proposed project.
b. Execute a Community Benefit Housing Agreement approved by the Director for recordation in the land records.
2. No entitlement or approval required by Title 17 of this Code, including but not limited to Site Plan Review, Comprehensive Plan approval and subdivision map approval, shall be issued for any portion of the project unless and until the Director has approved the Community Benefit Housing Plan submitted by the applicant.
3. No building permit shall be issued for any portion of the project unless and until the Director has approved the Community Benefit Housing Plan submitted by the applicant and the Community Benefit Housing Agreement has been recorded or the applicant has satisfied one of the options described in Subsection E.
4. No certificate of occupancy shall be issued for any portion of the project unless and until the Director has determined that the approved Community Benefit Housing Plan has been fully implemented.
F. Alternatives to Including the Community Benefit Affordable Units in the Project. In lieu of including the Community Benefit Affordable Units in the project, the Community Benefit may be provided through payment of an in-lieu fee as set forth below.
1. In Lieu Fee. At the discretion of the City Council, some or all of the requirement to include the Community Benefit Affordable Units in the project may be satisfied through payment of an in-lieu fee, as follows:
a. The amount of the fee required for each Community Benefit Affordable Unit that is not included in the project shall be calculated using the in-lieu fee schedule set forth in the Regulations in effect at the time of issuance of the first building permit for the project.
b. One-half of the in-lieu fee required by this subsection must be paid (or a letter of credit posted) prior to issuance of a building permit for any portion of the project. The remainder of the fee must be paid before a certificate of occupancy is issued for any portion of the project.
c. The fees collected shall be deposited in the City's Low and Moderate Income Housing Trust Fund for the purpose of providing, preserving, maintaining and administering affordable housing.
G. Regulations. The City Council shall by resolution adopt the Regulations for the City's implementation of this Section.
H. Appeal. An appeal of a determination by the Director of a matter subject to this Section must be initiated within 15 calendar days after the date of such determination. The appellant shall follow the appeal procedures set forth in § 17.640.030 and § 17.640.035.B. of this Code.
I. Administrative Fees. The City Council may by resolution establish reasonable fees and deposits for the administration of this Section, which shall be set forth in the Regulations.
J. Enforcement. The City may institute all appropriate administrative and legal actions or proceedings necessary to ensure compliance with this Section and the Regulations adopted pursuant to Subsection G., including but not limited to: (1) actions to revoke, deny or suspend any permit, including a building permit, certificate of occupancy, or discretionary approval granted under Title 17 of this Code; and (2) actions for injunctive, declaratory or other equitable relief or damages. In any actions to enforce this Section, the Regulations adopted pursuant to Subsection G., a Community Benefit Housing Plan, or a Community Benefit Housing Agreement, the City shall be entitled to recover its reasonable attorney's fees and costs.
(Ord. No. 2024-006)