(A) Incentives. It is the purpose of this section to provide incentives for the production of housing or for the donation of land for housing for very low income, or affordable households in accordance with Cal. Gov’t Code §§ 65915 and 65917. It is the intent of the city to facilitate the development of low and moderate income housing, including senior housing and special needs populations, and to implement the goals and policies of the city’s housing element.
(B) Eligibility. In order to be eligible for a density bonus and other incentives as provided by this section, a proposed residential development shall consist of five or more dwelling units and can be designed and constructed so that at least:
1. Ten percent of the total units of a housing development are for low income households;
2. Five percent of the total units of a housing development are for very low income households;
3. The total number of dwelling units of a housing development are for qualifying residents, such as a senior citizen housing development; or
4. Ten percent of the total dwelling units in a condominium project for persons and families of moderate income.
(C) Qualifying project. A qualifying project shall be allowed a minimum 20% increase, with a maximum 35% increase, in the maximum number of dwelling units allowed by the zoning district and general plan land use designation applicable to the lot(s) as of the date of the permit application. A single development project shall not be granted more than three density bonuses.
(D) Land donation. A developer may donate land for very low income housing that is sufficient to provide at least 10%, and up to 35%, of the units in the development for very low income households. For a 10% land donation, a developer receives a 15% density bonus above the maximum allowable density for the entire development. The donated land shall be at least one acre in size or of sufficient size to permit development of at least 40 units, has the appropriate general plan designation, is appropriately zoned for development as affordable housing, and is or will be served by adequate public facilities and infrastructure. The land shall have appropriate zoning and development standards to make the development of the affordable units feasible.
(E) Agreement.
1. Pursuant to Cal. Gov’t Code § 65915(b), if a developer seeks and agrees to construct at least 10% of the total units for lower income households, at least 5% of the total units for very low income households, a senior citizen housing development or at least 10% of the total units in a condominium project for persons and families of moderate income, the developer is entitled to one density bonus and at least one additional concession or incentive.
2. The developer shall receive two incentives or concessions for projects that include at least 20% of the total units for lower income households, at least 10% for very low income households, or at least 20% for persons and families of moderate income in a condominium or planned development.
3. The developer shall receive three incentives or concessions for projects that include at least 30% of the total units for lower income households, at least 15% for very low income households, or at least 30% for persons and families of moderate income in a condominium or planned development.
4. The City Council shall approve one or more of these incentives, listed below, unless it makes a written finding that the additional concession or incentive is not required in order for the sales price or rent for the targeted dwelling units to be set in compliance with state law (Cal Gov’t Code § 65915(c)):
(a) A reduction in the site development and/or design standards of this title (e.g., reduction in setback or parking requirements, or an increase in building coverage requirements);
(b) Approval of mixed use development in conjunction with the housing project if the nonresidential land uses will reduce the cost of the housing project, and the nonresidential land uses are compatible with the housing project and surrounding development; and
(c) Other regulatory incentives or concessions proposed by the developer or the city that will result in identifiable cost reductions.
(F) Location of units. The location of density bonus units within the qualifying project may be at the discretion of the developer. However, the inclusionary units shall be reasonably dispersed throughout the development (where feasible), shall contain on average the same number of bedrooms as the noninclusionary units in the development, and shall be compatible with the design or use of the remaining units in terms of appearance, materials and quality finish.
(G) Project management plan. Prior to issuance of any building permit for the project, a project management plan, in the form of a written contract, shall be executed by and between the applicant/developer, housing agency and city. The contract shall be a recorded document approved by the City Council as to form and content, and shall set forth sales, resales and rental restrictions to ensure that designated units remain available as low and moderate income, senior housing or special needs units, as applicable, for the term of the project under Cal. Gov’t Code § 65915(c).
(H) Provisions. The management plan shall provide for the housing agency to ensure the financial or circumstantial eligibility of applicants for purchase/rental of the low and moderate income or special needs and senior housing for the term of the project. If requested by the housing agency, the management plan shall provide for reimbursement by the applicant/developer the costs to the housing agency of administering the management plan.
(I) Requests for approval.
1. All requests for density bonuses and other incentives outlined in this section shall be approved by the City Council. Findings shall be consistent with applicable provisions of current state law at the time of permit application.
2. Any application for the density bonus shall be in the form and method prescribed by the Planning Director and accompanied by plot and development plans necessary to determine compliance with the purpose, intent and development standards prescribed herein. The development plans shall contain sufficient cost and market data based upon the land cost per dwelling unit to assure any density bonus concessions granted are necessary to attain the affordability targets mandated by Cal. Gov’t Code § 65915 and Senate Bill 1818.
(Ord. 533, passed 8-16-2005)