17.32.040 INCENTIVES FOR ON-SITE HOUSING.
   A.   In the Affordable Housing Plan that is prepared and approved in accordance with Section 17.32.070 (Affordable Housing Plan Processing), the applicant shall identify the incentives or modifications requested and describe the exceptional circumstances that necessitate assistance from the city, as well as provide documentation of how such incentives increase the feasibility of providing affordable housing. Incentives will be offered only to the extent resources for this purpose are available and approved for such use by the City Council, as defined below, and to the extent that the project, with the use of incentives, assists in achieving the city's housing goals. Nothing in this chapter establishes, directly or through implication, a right of an applicant to receive any incentive from the city.
   B.   The following incentives may be approved for applicants who construct affordable housing units on-site:
      1.   Density Bonus. Consistent with California Government Code Sections 65915 through 65918, qualifying projects can receive a density bonus by right. Density bonus requirements are outlined in Chapter 17.38 (Density Bonus) of this code.
      2.   Fee Subsidy or Deferral. The City Council, by resolution, may subsidize or defer payment of city development impact fees and/or building permit fees applicable to the affordable housing units or the project of which they are a part. The affordability control covenant shall include the terms of the fee subsidy or deferral.
      3.   Design Modifications. The granting of design modifications relative to affordable housing requirements shall require approval of the City Council and shall meet all applicable zoning requirements of the city. Modifications to typical development standards may include the following:
         a.   Reduced minimum setbacks;
         b.   Reduced minimum building separation requirements;
         c.   Reduced square footage requirements;
         d.   Reduced parking requirements;
         e.   Reduced minimum lot sizes and/or dimensions;
         f.   Reduced street standards (e.g., reduced minimum street widths);
         g.   Reduced on-site open space requirements;
         h.   Increased height limitations;
         i.   Increased maximum lot coverage;
         j.   Increased floor area ratio;
         k.   Allowance for live-work units within multi-family residential zoning districts;
         l.   In lieu of reduced setbacks, allowance for attached dwelling units, if shown to be necessary to make the project feasible; or
         m.   Other regulatory incentives or concessions proposed by the developer or the city that result in identifiable, financially sufficient, and actual cost reductions.
         n.   Priority Processing. After receiving the required discretionary approvals, the residential development that provides affordable housing units may be entitled to priority processing of building and engineering approvals, subject to the approval of the City Manager. (Ord. 2010-02 § 1 (part), 2010)