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16.20.060 Incentives.
   A.   Incentives include incentives and concessions as defined in State Density Bonus Law. The number of incentives that may be requested shall be based upon the number the applicant is entitled to pursuant to State Density Bonus Law.
   B.   Nothing in this subsection requires the provision of direct financial incentives for the housing development, including, but not limited to, the provision of financial subsidies, publicly owned land, fee waivers, or waiver of dedication requirements. The City, at its sole discretion, may choose to provide such direct financial incentives.
(Ord. 549 § 2, 2019)
16.20.070 Review Procedures.
   All requests for density bonuses, incentives, parking reductions, waivers, or commercial development bonuses shall be considered and acted upon by the approval body with authority to approve the development within the timelines prescribed by Government Code §§ 65950 et seq., with right of appeal to the City Council.
   A.   Eligibility for Density Bonus, Incentive(s), Parking Reduction, and/or Waiver(s) for a Housing Development. To ensure that an application for a housing development conforms with the provisions of State Density Bonus Law, the staff report presented to the decision-making body shall state whether the application conforms to the following requirements of state law as applicable:
      1.   The housing development provides the affordable units or senior housing required by State Density Bonus Law to be eligible for the density bonus and any incentives, parking reduction, or waivers requested, including the replacement of units rented or formerly rented to low and very low income households as required by Government Code § 65915(c)(3).
      2.   Any requested incentive will result in identifiable and actual cost reductions to provide for affordable housing costs or rents; except that, if a mixed-use development is requested, the application must instead meet all of the requirements of Government Code § 65915(k)(2).
      3.   The development standards for which a waiver is requested would have the effect of physically precluding the construction of a development at the densities or with the concessions or incentives permitted by Government Code § 65915.
      4.   The housing development is eligible for any requested parking reductions under Government Code § 65915(p).
      5.   If the density bonus is based all or in part on donation of land, all of the requirements included in Government Code § 65915(g) have been met.
      6.   If the density bonus or incentive is based all or in part on the inclusion of a child care facility, all of the requirements included in Government Code § 65915(h) have been met.
      7.   If the density bonus or incentive is based ail or in part on the inclusion of affordable units as part of a condominium conversion, all of the requirements included in Government Code § 65915.5 have been met.
   B.   If a commercial development bonus is requested for a commercial development, the decision-making body shall make a finding that the development complies with all of the requirements of subparagraph 16.20.100.C, that the City has approved the partnered housing agreement, and that the commercial development bonus has been mutually agreed upon by the City and the commercial developer.
   C.   The decision-making body shall grant an incentive requested by the applicant unless it makes a written finding, based upon substantial evidence, of any of the following:
      1.   The proposed incentive does not result in identifiable and actual cost reductions to provide for affordable housing costs, as defined in § 50052.5 of the Health and Safety code, or for affordable rents, as defined in § 50053 of the Health and Safety Code; or
      2.   The proposed incentive would be contrary to state or federal law; or
      3.   The proposed incentive would have a specific, adverse impact upon public health or safety or the physical environment or on any real property that is listed in the California Register of Historic Resources, and there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact without rendering the housing development unaffordable to low and moderate income households. For the purpose of this subsection, specific adverse impact means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified, written public health or safety standards, policies, or conditions as they existed on the date that the application for the housing development was deemed complete.
   D.   The decision-making body shall grant the waiver of development standards requested by the applicant unless it makes a written finding, based upon substantial evidence, of any of the following:
      1.   The proposed waiver would be contrary to state or federal law; or
      2.   The proposed waiver would have an adverse impact on any real property listed in the California Register of Historic Resources; or
      3.   The proposed waiver would have a specific, adverse impact upon public health or safety or the physical environment, and there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact without rendering the housing development unaffordable to low and moderate income households. For the purpose of this subsection, specific adverse impact means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified, written public health or safety standards, policies, or conditions as they existed on the date that the application for the housing development was deemed complete.
   E.   If any density bonus, incentive, parking reduction, waiver, or commercial development bonus is approved pursuant to this chapter, the applicant shall enter into an affordable housing agreement or senior housing agreement with the City pursuant to subsection 16.20.080.
(Ord. 549 § 2, 2019)
16.20.080 Affordable Housing Agreement and Senior Housing Agreement.
   A.   Except where a density bonus, incentive, waiver, parking reduction, or commercial development bonus is provided for a market-rate senior housing development, the applicant shall enter into an affordable housing agreement with the City, in a form approved by the City Attorney, to be executed by the City Manager, to ensure that the requirements of this subsection are satisfied. The affordable housing agreement shall guarantee the affordability of the affordable units for a minimum of 55 years or a longer period of time if required by the construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy program; shall identify the type, size and location of each affordable unit; and shall specify phasing of the affordable units in relation to the market-rate units.
   B.   Where a density bonus, waiver, or parking reduction is provided for a market-rate senior housing development, the applicant shall enter into a restrictive covenant with the City, running with the land, in a form approved by the City Attorney, to be executed by the City Manager, to require that the housing development be operated as "housing for older persons" consistent with state and federal fair housing laws.
   C.   The executed affordable housing agreement or senior housing agreement shall be recorded against the housing development prior to final or parcel map approval, or, where a map is not being processed, prior to issuance of building permits for the housing development. The affordable housing agreement or senior housing agreement shall be binding on all future owners and successors in interest.
   D.   The affordable housing agreement shall include, but not be limited to, the following:
      1.   The number of density bonus dwelling units granted;
      2.   The number and type of affordable dwelling units
      3.   The unit size(s) (square footage) of target dwelling units and the number of bedrooms per target dwelling unit;
      4.   The proposed location of the affordable dwelling units;
      5.   Schedule for production of affordable dwelling units;
      6.   Incentives or concessions or waivers provided by the city;
      7.   Where applicable, tenure and conditions governing the initial sale of the affordable units;
      8.   Where applicable, tenure and conditions establishing rules and procedures for qualifying tenants, setting rental rates, filling vacancies, and operating and maintaining units for affordable rental dwelling units
      9.   Marketing Plan; Publication and Notification of Availability of Affordable Units;
      10.   Compliance with Federal and State Laws;
      11.   Prohibition Against Discrimination;
      12.   Indemnification;
      13.   City's Right to Inspect Units and Documents;
      14.   Remedies;
      15.   Attorney(s) Fees Provision.
(Ord. 549 § 2, 2019)
16.20.090 Design and Quality.
   A.   The City may not issue building permits for more than 50 percent of the market rate units until it has issued building permits for all of the affordable units, and the City may not approve any final inspections or certificates of occupancy for more than 50 percent of the market rate units until it has issued final inspections or certificates of occupancy for all of the affordable units.
   B.   Affordable units shall be comparable in exterior appearance and overall quality of construction to market-rate units in the same housing development. Interior finishes and amenities may differ from those provided in the market rate units, but neither the workmanship nor the products may be of substandard or inferior quality as determined by the City.
   C.   The number of bedrooms of the affordable units shall at least equal the minimum number of bedrooms of the market-rate units.
(Ord. 549 § 2, 2019)
16.20.100 Commercial Density Bonus.
   A.   The following definitions shall apply to Commercial Density Bonus:
      1.   Commercial development means a development project for nonresidential uses.
      2.   Commercial development bonus means a modification of development standards mutually agreed upon by the City and a commercial developer and provided to a commercial development eligible for such a bonus under subparagraph 16.20.100.C. Examples of a commercial development bonus include an increase in floor area ratio, increased building height, or reduced parking.
      3.   Partnered housing agreement means an agreement approved by the City between a commercial developer and a housing developer identifying how the commercial development will provide housing available at affordable ownership cost or affordable rent consistent with subparagraph 16.20.100.C. A partnered housing agreement may consist of the formation of a partnership, limited liability company, corporation, or other entity recognized by the state in which the commercial developer and the housing developer are each partners, members, shareholders, or other participants, or a contract between the commercial developer and the housing developer for the development of both the commercial development and the housing development.
   B.   When an applicant proposes to construct a commercial development and has entered into a partnered housing agreement approved by the City, the City shall grant a commercial development bonus mutually agreed upon by the developer and the City. The commercial development bonus shall not include a reduction or waiver of fees imposed on the commercial development to provide for affordable housing.
   C.   The partnered housing agreement shall include all of the following provisions:
      1.   The housing development shall be located either: (A) on the site of the commercial development; or (B) on a site within the City that is within one-half mile of a major transit stop and is located in close proximity to public amenities, including schools and employment centers.
      2.   At least 30 percent of the total units in the housing development shall be made available at affordable ownership cost or affordable rent for low-income households, or at least 15 percent of the total units in the housing development shall be made available at affordable ownership cost or affordable rent for very low-income households.
      3.   The commercial developer must agree either to directly build the affordable units; donate a site consistent with subparagraph (i) above for the affordable units; or make a cash payment to the housing developer for the affordable units.
   D.   Any approved partnered housing agreement shall be described in the City's Housing Element annual report as required by Government Code § 65915.7(k).
(Ord. 549 § 2, 2019)
16.20.110 Interpretation.
   If any portion of this subsection conflicts with State Density Bonus Law or other applicable state law, state law shall supersede this subsection. Any ambiguities in this section shall be interpreted to be consistent with State Density Bonus Law.
(Ord. 549 § 2, 2019)