This section describes the density bonuses that will be provided, at the request of an applicant, when that applicant provides restricted affordable units as described below.
(a) The city shall grant a twenty percent (20%) density bonus when an applicant for a development of five (5) or more dwelling units seeks and agrees to construct at least any one of the following in accordance with the requirements of this Section and Government Code Section 65915:
(i) At least ten percent (10%) of the total dwelling units of the development as restricted affordable units affordable to lower income households. Between ten and twenty percent (10-20%), for each one percent (1%) increase in the percentage of restricted lower income units, a development will receive an additional one and one-half percent (1.5%) density bonus up to thirty-five percent (35%) of the maximum residential density. For each one percent (1%) increase in the percentage of restricted lower income units exceeding twenty percent (20%), a development will receive an additional three and three-quarters percent (3.75%) density bonus up to fifty percent (50%) of the maximum residential density; or
(ii) At least five percent (5%) of the total dwelling units of the development as restricted affordable units affordable to very low income households. Between five and eleven percent (5-11%), for each one percent (1%) increase in the percentage of restricted very low income units, a development will receive an additional two and one-half percent (2.5%) density bonus up to thirty-five percent (35%) of the maximum residential density. For each one percent (1%) increase in the percentage of restricted very low income units exceeding eleven percent (11%), a development will receive an additional three and three-quarters percent (3.75%) density bonus up to fifty percent (50%) of the maximum residential density; or
(iii) A senior citizen housing development; or
(iv) A qualifying mobilehome park; or
(v) At least ten percent (10%) of the total dwelling units of the development for transitional foster youth, as defined in Section 66025.9 of the Education Code, disabled veterans, as defined in Section 18541 of the Government Code, or homeless persons, as defined in the federal McKinney-Vento Homeless Assistance Act (42 U.S.C. Sec. 11301 et seq.). The units described in this subsection shall be subject to a recorded affordability restriction of 55 years and shall be provided at the same affordability level as very low income units.
(b) The city shall grant a five percent (5%) density bonus when an applicant for a development of five (5) or more additional dwelling units seeks and agrees to construct a development, in accordance with the requirements of this Section and Government Code Section 65915, in which at least 10 percent (10%) of the total dwelling units of a housing development are sold to persons and families of low or moderate income households, provided that all dwelling units in the development are offered to the public for purchase. For each one percent (1%) increase in the percentage of restricted moderate income units between ten and forty percent (10-40%), a development will receive an additional one percent (1%) density bonus up to thirty-five percent (35%) of the maximum residential density. For each one percent (1%) increase in the percentage of total dwelling units restricted for moderate income households exceeding forty percent (40%), a development will receive an additional three and three-quarters percent (3.75%) density bonus up to fifty percent (50%) of the maximum residential density.
(c) The city shall grant a thirty-five percent (35%) density bonus when an applicant for a student housing development of five (5) or more additional dwelling units seeks and agrees to construct in accordance with the requirements of this section and Government Code Section 65915:
(i) At least twenty percent (20%) of the total dwelling units will be restricted for lower income students.
(ii) For purposes of calculating a density bonus granted pursuant to this subparagraph, the term "unit" as used in this subparagraph means one rental bed and its pro rata share of the associated common area facilities. The units described in this subparagraph shall be subject to an affordability restriction of 55 years.
(iii) All units will 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.
(iv) The applicant submits evidence that the applicant entered into an operating agreement or master lease with one or more institutions of higher education for the institution(s) to occupy all units of the student housing development with students from that institution(s).
(v) The rent provided in the applicable units of the development for lower income students shall be calculated at thirty percent (30%) of sixty-five percent (65%) of the area median income for Santa Clara County for a single-room occupancy unit type.
(vi) The applicant will provide priority for the applicable affordable units for lower income students experiencing homelessness. A homeless service provider, as defined in paragraph (3) of subdivision (e) of Section 103577 of the 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 for purposes of this subclause.
(d) The city shall grant a density bonus to a development if the following criteria apply: one hundred percent (100%) of all units in the development, including total units and density bonus units, but exclusive of manager's unit or units, are for lower income households, as defined by Section 50079.5 of the Health and Safety Code, except that twenty percent (20%) of the units in the development, including total units and density bonus units, may be for moderate-income households, as defined in Section 50053 of the Health and Safety Code. For rental units, rents shall be restricted as set forth in Government Code section 65915(c)(1)(B)(ii).
(i) Except as otherwise provided in clause (ii), the city will grant a density bonus of eighty percent (80%) of the number of units for lower income households.
(ii) If the development is located within one-half mile of a major transit stop, the city will not impose any maximum controls on density.
(e) When calculating the number of permitted density bonus units, any fractions of units shall be rounded to the next highest number. An applicant may elect to receive a density bonus that is less than the amount permitted by this section; however, the city shall not be required to similarly reduce the number of restricted affordable units required to be dedicated pursuant to this section and Government Code Section 65915(b).
(f) Each development is entitled to only one density bonus, which shall be selected by the applicant based on the percentage of very low restricted affordable units, lower income restricted affordable units, or moderate income restricted affordable units, or the development’s status as a senior citizen housing development or qualifying mobilehome park, or the development's provision of restricted affordable units for transitional foster youth, disabled veterans or homeless persons. Density bonuses from more than one category may not be combined. Except as provided for in 18.15.030(d), in no case shall a development be entitled to a density bonus of more than fifty percent (50%).
(g) The density bonus units shall not be included when determining the number of restricted affordable units required to qualify for a density bonus. When calculating the required number of restricted affordable units, any resulting decimal or fraction shall be rounded to the next larger integer.
(h) Any restricted affordable unit provided pursuant to the city’s below market rate housing program shall be included when determining the number of restricted affordable units required to qualify for a density bonus or other entitlement under this chapter. However, the payment of a housing impact or in lieu fee shall not qualify for a density bonus or other entitlement under this chapter.
(i) An applicant (or project) shall be ineligible for a density bonus or any other incentives or concessions under this chapter if the housing development is proposed on any 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; subject to any other form of rent or price control through the City’s valid exercise of its police power; or occupied by lower or very low income households, unless the proposed housing development replaces those units, and either of the following applies:
(i) The proposed housing development, inclusive of the units replaced pursuant to this paragraph, contains affordable units at the percentages set forth in Section 18.15.030.
(ii) Each unit in the development, exclusive of a manager’s unit or units, is affordable to, and occupied by, either a lower or very low income household.
(j) Certain other types of development activities are specifically eligible for a density bonus pursuant to state law:
(i) A development may be eligible for a density bonus in return for land donation pursuant to the requirements set forth in Government Code Section 65915(g).
(ii) A condominium conversion may be eligible for a density bonus or concession pursuant to the requirements set forth in Government Code Section 65915.5.
(iii) An applicant for a commercial development who has entered into an agreement for partnered housing may be eligible for a density bonus pursuant to the requirements set forth in Government Code Section 65915.7.
(k) As provided in Section 18.15.080(c), development proposed with rezoning to the Planned Community zone district are entitled to densities approved as part of the rezoning and shall not be entitled to a density bonus in addition to the units entitled by the rezone.
(l) Notwithstanding any provision of this chapter, all developments must satisfy all applicable requirements of the city’s Below Market Rate Housing Program in Chapter 16.65, which may impose requirements for restricted affordable units in addition to those required to receive a density bonus or concessions.
Table 1 summarizes the density bonus provisions described in this Section.
Table 1
Density Bonus Summary Table
Density Bonus Summary Table
Restricted Affordable Units (RAUs) or Category | Minimum Percentage of RAUs | Percentage of Density Bonus Granted | Additional Bonus for Each 1% Increase in RAUs | Percentage of RAUs Required for 35% Density Bonus | Percentage of RAUs Required for Maximum 50% Density Bonus |
Restricted Affordable Units (RAUs) or Category | Minimum Percentage of RAUs | Percentage of Density Bonus Granted | Additional Bonus for Each 1% Increase in RAUs | Percentage of RAUs Required for 35% Density Bonus | Percentage of RAUs Required for Maximum 50% Density Bonus |
Very Low Income | 5% | 20% | 2.50% (3.75% bonus for increases above 11% RAU) | 11% | 15% |
Lower Income | 10% | 20% | 1.50% (3.75% bonus for increases above 20% RAU) | 20% | 24% |
Moderate Income | 10% | 5% | 1% (3.75% bonus for increases above 40% RAU) | 40% | 44% |
Lower Income Student Housing | 20% | 35% | ----- | ----- | ----- |
Senior Citizen Housing | 100% | 20% | ------ | ------ | ------ |
Qualifying Mobile Park | 100% | 20% | ------ | ------ | ------ |
100% Affordable Units | 100% | 80% (or no maximum density) | ----- | ----- | ----- |
Note: A density bonus may be selected from only one category.
(Ord. 5523 § 2 (part), 2021: Ord. 5432 § 7 (part), 2018: Ord. 5373 § 13 (part), 2016; Ord. 5231 § 2 (part), 2014)