On or before November 1, 2026, project sponsors of Pipeline Projects shall be entitled to request a modification under Section 415A.5 to that project’s conditions of approval, conditions on a project permit, notice of special restrictions, or other requirements related to: (1) specified requirements of the Inclusionary Affordable Housing Program, Planning Code Section 415.1 et seq., or other applicable inclusionary housing requirement; (2) conditions that require a project sponsor to obtain a site permit within a certain timeframe after project approval; and (3) findings required by Planning Code Section 206.6. Except as specifically set forth herein, or as modified under the procedure set forth in subsection 415A.5, Pipeline Projects shall comply with all other conditions of approval, conditions on a project permit, or notice of special restrictions and any applicable requirements of the Planning Code, including the requirements set forth in Sections 415.1 through 415.11. Project sponsors may request the following modifications:
(a) Affordable Housing Fee. If a project sponsor of a Pipeline Project elected to pay the inclusionary housing fee pursuant to Section 415.5, the project shall be entitled to a modification of the inclusionary housing requirements set forth in Section 415.5(b)(1)(A), 415.5(b)(1)(B) or 415.5(b)(1)(C), or if applicable 415.3(b)(2)(A) through (2)(C), as follows:
(1) For Ownership or Rental Housing Pipeline Projects consisting of 10 units or more, the applicable percentage shall be 16.4%.
(2) For any Pipeline Project consisting of 10 units or more located in an area with a specific affordable housing requirement set forth in a Special Use District, Area Plan, or in any other section of the Code, including 415.3(d), 419, or 428, the applicable percentage shall be 54.5% of the rate for Rental Housing Projects in the specific area, rounded to the nearest tenth of one percent. This reduction shall not apply to fees subject to the Temporary Fee Reduction Program set forth in Section 403.
(3) Notwithstanding subsection (2), in no case shall a Pipeline Project be entitled to a modification of an affordable housing fee that would result in an applicable percentage lower than 16.4%.
(b) On-site Affordable Housing Alternative. If a project sponsor of a Pipeline Project elected to provide on-site affordable units pursuant to Section 415.5(g), the development project shall be entitled to the following modifications to the on-site percentages in Sections 415.6(a)(1), 415.6(a)(2), or 415.6(a)(3), or if applicable, the on-site percentages set forth in Sections 415.3(b)(1)(A) to (b)(1)(D), or Section 206.3:
(1) For Pipeline Projects consisting of 10 units or more, but less than 25 units, the applicable percentage shall be 12%.
(2) For Pipeline Projects consisting of 25 units or more, the number of Affordable Units constructed on-site shall be 12% of all units constructed on the project site. Such projects shall ensure that a minimum of 8% of the units are affordable to low-income households, 2% are affordable to moderate-income households, and 2% are affordable to middle-income households.
(3) For any Pipeline Project consisting of 10 units or more that is located in an area with a specific affordable housing on-site requirement set forth in a Special Use District, Area Plan, or in any other section of the Code, including Sections 415.3(b)(1)(E), 415.3(d), 419, or 428, the applicable percentage shall be 54.5% of the rate for Rental Housing Projects in that specific area, rounded to the nearest tenth of one percent. For any Pipeline Project consisting of 10 units or more that was approved pursuant to Section 206.3, the applicable percentage shall be 54.5% of the rate in Section 206.3(f).
(4) Notwithstanding subsection (3), in no case shall a Pipeline Project be entitled to a modification of an on-site affordable housing obligation that would result in an applicable percentage lower than 12%.
(1) For Pipeline Projects consisting of 25 units or more, the applicable percentage shall be 16.4%. Such projects shall ensure that a minimum of 9.4% of the units are affordable to low-income households, 4% are affordable to moderate-income households, and 3% are affordable to middle-income households.
(2) For any Pipeline Project consisting of 25 units or more located in an area or Special Use District or in any other section of the Code, including Sections 415.3(d), 419, and 428 with a specific affordable housing requirement, the applicable percentage shall 54.5% of the rate for Rental Housing Projects in the specific area, rounded to the nearest tenth of one percent.
(3) Notwithstanding subsections (1) and (2), in no case shall a Pipeline Project be entitled to a modification of the off-site affordable housing alternative that would result in a percentage lower than 16.4%.
(d) Site Permit and First Construction Document Timing Requirements; Conditions of Approval.
(1) Notwithstanding any contrary provision in this Code, project sponsors of Pipeline Projects shall be entitled to a modification under Section 415A.5 of any conditions of approval or conditions on a project permit, requiring procurement of a site permit within a specified time, but in no event may such a deadline be extended past May 1, 2029.
(2) Notwithstanding any contrary provision in this Code, any modification under Section 415A.5 shall require as a condition that the project sponsor procure a First Construction Document on or before May 1, 2029. Failure to meet this condition shall invalidate the modification. Pipeline Projects that fail to procure a First Construction Document on or before May 1, 2029 shall be subject to the Inclusionary Affordable Housing requirements in effect on May 1, 2029 that are applicable to a project at the same location, size, and tenure.
(e) Density Bonus Projects: Affordability Levels, Concessions, Incentives and Waivers. If a Pipeline Project elected to proceed under the State Density Bonus law, Government Code section 65915 and/or Planning Code section 206.6. 1
(State Density Bonus Program: Individually Requested), the project sponsor may request the following modifications to a condition of approval or regulatory agreement pursuant to Section 415A.5, provided that the project continues to meet the requirements of the State Density Bonus law and/or Section 206.6:
(1) the number of units to be restricted as affordable units and the affordability levels of those units;
(2) the number and type of concessions, incentives, and waivers granted under 206.6(e).
AMENDMENT HISTORY
Section re-added; divisions (a)-(b), (b)(1)-(3), and (c)(1)-(3) amended as (a)-(b), (b)(2)-(4), and (c)(2)-(4); new divisions (b)(1) and (c)(1) added; Ord. 201-23, Eff. 11/12/2023.
CODIFICATION NOTE