18.15.020    Definitions
Whenever the following terms are used in this chapter, they shall have the meaning established by this section:
   (a)   “Affordable rent” means monthly rent, including a reasonable allowance for utilities and all fees for housing services, for rental restricted affordable units reserved for very low or lower income households, that does not exceed the following:
      (i)   Very low income: 50% of the area median income for Santa Clara County, adjusted for presumed household size, multiplied by 30% and divided by 12.
      (ii)   Lower income: 60% of the area median income for Santa Clara County, adjusted for presumed household size, multiplied by 30% and divided by 12.
   (b)   “Affordable sales price” means the maximum sales price at which very low, lower and moderate income households can qualify for the purchase of restricted affordable units as set forth in the City of Palo Alto’s Below Market Rate Housing Program. The sales price shall be considered affordable only if it is based on a reasonable down payment, and monthly housing payments (including interest, principal, mortgage insurance, property taxes and assessments, fire and casualty insurance, homeowners association fees, property maintenance and repairs, and a reasonable allowance for utilities), all as determined by the city, that are equal to or less than:
      (i)   Very low income: 50% of the area median income for Santa Clara County, adjusted for presumed household size, multiplied by 30% and divided by 12.
      (ii)   Lower income: 80% of the area median income for Santa Clara County, adjusted for presumed household size, multiplied by 30% and divided by 12.
      (iii)   Moderate income: 120% of the area median income for Santa Clara County, adjusted for presumed household size, multiplied by 30% and divided by 12.
   (c)   “Applicant” means any person, firm, partnership, association, joint venture, corporation, or any entity or combination of entities who seeks development permits or approvals from the City of Palo Alto.
   (d)   “Approval authority” means the person or body that is authorized to approve a development as specified in the City of Palo Alto Municipal Code. Approval Authority shall also include recommending bodies such as the Architectural Review Board and the Planning and Transportation Commission.
   (e)   “Below market rate housing program” means Chapter 18.14 of the Palo Alto Municipal Code and the Administrative Guidelines for the below market rate program.
   (f)   “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.
   (g)   “Concession or incentive” as used interchangeably means such regulatory concessions as specified in Government Code Section 65915(k) to include:
      (i)   A reduction of site development standards or architectural design requirements which exceed the minimum applicable building standards approved by the State Building Standards Commission pursuant to Part 2.5 (commencing with Section 18901) of Division 13 of the Health and Safety Code, including, but not limited to, a reduction in setback, coverage, and/or parking requirements which result in identifiable, financially sufficient and actual cost reductions;
      (ii)   Allowing mixed use development in conjunction with the proposed residential development, if nonresidential land uses will reduce the cost of the residential project and the nonresidential land uses are compatible with the residential project and existing or planned development in the area where the development will be located; and
      (iii)   Other regulatory concessions proposed by the applicant or the city which result in identifiable financially sufficient, and actual cost reductions.
   (h)   “Density bonus” means a density increase over the maximum residential density granted pursuant to Government Code Section 65915 and this ordinance, or, if elected by the applicant, a lesser percentage of density increase, including, but not limited to, no increase in density.
   (i)   “Density bonus units” means those dwelling units granted pursuant to the provisions of this chapter which exceed the otherwise maximum residential density for the development site.
   (j)   “Development” means all developments pursuant to a proposal to construct or place five (5) or more additional dwelling units on a lot or contiguous lots including, without limitation, a planned unit development, site plan, subdivision, or conversion of a non-residential building to dwelling units.
   (k)   “Development standard” means a site or construction condition such as a height limitation, a setback, or a floor-area ratio, that applies to a development pursuant to any ordinance, general plan element, specific plan, charter, or other city condition, law, policy, resolution, or regulation. A “site and construction condition” is a development regulation or law that specifies the physical development of a site and buildings on the site in a development.
   (l)   “Discretionary permit” means any permit issued for the development which requires the exercise of judgment or deliberation from the Approval Authority, including but not limited to conditional use permits, variances, site plans, design review, planned development permits, general and specific plan approvals and amendments, zoning amendments, and tentative and parcel maps.
   (m)   “Lower, very low, or moderate income” means annual income of a household that does not exceed the maximum income limits for the income category, as adjusted for household size, applicable to Santa Clara County, as published and periodically updated by the State Department of Housing and Community Development pursuant to Sections 50079.5, 50105, or 50093 of the California Health and Safety Code.
   (n)   “Maximum residential density” means the maximum number of dwelling units permitted in the development by the city’s Comprehensive Plan Land Use Element and Zoning Ordinance at the time of application, excluding the provisions of this chapter. If the maximum density allowed by the zoning ordinance is inconsistent with the density allowed by the land use element of the city’s Comprehensive Plan, the land use element density shall prevail.
   (o)   “Non-restricted unit” means all dwelling units within a development excluding the restricted affordable units.
   (p)   “Qualifying mobilehome park” means a mobilehome park that limits residency based on age requirements for housing older persons pursuant to Section 798.76 and 799.5 of the Civil Code.
   (q)   “Qualifying resident” means senior citizens or other persons eligible to reside in a senior citizen housing development or qualifying mobilehome park.
   (r)   “Regulatory agreement” means a recorded and legally binding agreement between an applicant and the city to ensure that the requirements of this chapter are satisfied. The regulatory agreement, among other things, shall establish: the number of restricted affordable units, their size, location, terms and conditions of affordability, and production schedule.
   (s)   “Replace” means either of the following:
      (i)   If any dwelling units described in Section 18.15.030(i) are occupied on the date that the application is submitted to the City, the proposed housing development 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. For unoccupied dwelling units described in Section 18.15.030(i) in a development with occupied units, the proposed housing development shall provide units of equivalent size or type, or both, 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 in the same proportion of affordability as the occupied units. 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. For purposes of this subsection (s) of Section 18.15.020, “equivalent size” means that the replacement units contain at least the same total number of bedrooms as the units being replaced.
      (ii)   If all dwelling units described in Section 18.15.030(i) have been vacated or demolished within the five-year period preceding the application, the proposed housing development shall provide at least the same number of units of equivalent size, as existed at the highpoint of those units in the five-year period preceding the application 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 persons and families in occupancy at that time, if known. If the incomes of the persons and families in occupancy at the highpoint is not known, then one-half of the required units shall be made available at affordable rent or affordable housing cost to, and occupied by, very low income persons and families and one-half of the required units shall be made available for rent at affordable housing costs to, and occupied by, low-income persons and families. 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.
   (t)   “Restricted affordable unit” means a dwelling unit within a development which will be available at an affordable rent or affordable sales price for sale or rent to very low, lower or moderate income households.
   (u)   “Senior citizen housing development” means a Development consistent with the California Fair Employment and Housing Act (Government Code Section 12900 et. seq., including 12955.9 in particular), which has been “designed to meet the physical and social needs of senior citizens,” and which otherwise qualifies as “housing for older persons” as that phrase is used in the federal Fair Housing Amendments Act of 1988 (P.L. 100-430) and implementing regulations (24 CFR, part 100, subpart E), and as that phrase is used in California Civil Code Section 51.2 and 51.3.
   (v)   "Lower income student" means a student who has a household income and asset level that does not exceed the level for Cal Grant A or Cal Grant B award recipients as set forth in Section 69432.7(k) of the Education Code. The eligibility of a unit for lower income students under this section shall be verified by an affidavit, award letter, or letter of eligibility provided by the institution of higher education in which the student is enrolled or by the California Student Aid Commission that the student receives or is eligible for financial aid, including an institutional grant or fee waiver from the college or university, the California Student Aid Commission, or the federal government.
(Ord. 5523 § 2 (part), 2021: Ord. 5432 § 7 (part), 2018: Ord. 5373 § 12, 2016; Ord. 5231 § 2 (part), 2014)