(A) Intent.
(1) In enacting this section, it is the intent of the city to encourage the development of affordable housing to meet a variety of economic needs within the city and to implement the goals, objectives, and policies of the city's housing element of the General Plan. The provisions of this section is intended to facilitate the construction of residential developments that will be long lasting, quality places to live, and compatible with surrounding land uses and residential neighborhoods. This section provides incentives for the production of housing for very low-, lower-, and moderate-income households and senior citizen housing in accordance with Cal. Government Code §§ 65915 through 65917.
(2) The regulations and procedures set forth in this section shall be publicized by the city and shall apply throughout the city. Sections of the California Government Code referenced in this section and application forms for complying with this section, shall be available to the public.
(B) Definitions. For the purpose of this section the following definitions shall apply unless the context clearly indicates or requires a different meaning.
ADDITIONAL INCENTIVES.
The regulatory concessions and incentives as specified in Cal. Government Code § 65915(k) to include, but not be limited to, the reduction of site development standards or zoning code requirements, direct financial assistance, approval of mixed-use zoning in conjunction with the housing development, and any other regulatory incentive which would result in identifiable cost avoidance or reductions that are offered in addition to a density bonus.
AFFORDABLE.
Housing units offered at an affordable rent or affordable sales price.
AFFORDABLE RENT.
Monthly housing expenses, including a reasonable allowance for utilities, for rental target units reserved for very low- and lower-income households, not exceeding the following calculations:
(a) Very low-income: 50% of the area median income for Los Angeles County, adjusted for household size appropriate for the unit, multiplied by 30% and divided by 12.
(b) Lower-income: 60% of the area median income for Los Angeles County, adjusted for household size appropriate for the unit, multiplied by 30% and divided by 12.
AFFORDABLE SALES PRICE.
A sales price at which very low- or lower-income households can qualify for the purchase of target units, calculated on the basis of underwriting standards of mortgage financing available for the development.
CHILDCARE FACILITY.
A child daycare facility other than a family daycare home, including, but not limited to, infant centers, preschools, extended daycare facilities, and school age childcare centers.
DENSITY BONUS.
A minimum density increase over the otherwise maximum allowable residential density.
DENSITY BONUS HOUSING AGREEMENT.
A legally binding agreement between a developer and the city to ensure that the requirements of this chapter are satisfied. The agreement, among other things, shall establish the number of target units, their size, location, terms and conditions of affordability, and production schedule. See division (J) of this section.
DENSITY BONUS UNITS.
Those residential units granted pursuant to the provisions of this section which exceed the maximum allowable residential density for the development site.
EQUIVALENT FINANCIAL INCENTIVE.
A monetary contribution, based upon a land cost per dwelling unit savings that would otherwise result from a density bonus or additional incentive(s).
HOUSEHOLD SIZE.
The number of persons assumed, as detailed in the table below, in determining the affordable rent or affordable sales price of target units, unless the housing development is subject to different assumptions imposed by other government regulations.
Housing Unit Type | Assumed Persons Per Housing Unit | |
Non-Senior Units | Senior Units | |
SRO (residential hotel) unit | 75% of 1 person | 75% of 1 person |
0 bedroom (studio) | 1 person | 1 person |
1 bedroom | 2 persons | 1 person |
2 bedrooms | 3 persons | 2 persons |
HOUSING COST.
The sum of actual or projected monthly payments for all of the following associated with for-sale target units, principal and interest on a mortgage loan, including any loan insurance fees, property taxes and assessments, fire and casualty insurance, property maintenance and repairs, homeowner association fees, and a reasonable allowance for utilities.
HOUSING DEVELOPMENT.
Construction projects consisting of five or more residential units, including single-family, multi-family, and mobile homes for sale or rent.
LOWER-INCOME HOUSEHOLD.
Households whose income does not exceed the lower income limits applicable to Los Angeles County, as published and periodically updated by the state's Department of Housing and Community Development pursuant to Cal. Health and Safety Code § 50079.5.
MAXIMUM ALLOWABLE RESIDENTIAL DENSITY.
The maximum number of residential units permitted by the city's General Plan and Zoning Ordinance on the project site at the time of application, excluding the provisions of this section. If the housing development is within a planned development overlay zone, the maximum residential density shall be determined on the basis of the General Plan and the maximum density of the underlying zoning district.
MODERATE-INCOME HOUSEHOLD.
Households whose income does not exceed the moderate-income limits applicable to Los Angeles County, as published and periodically updated by the state's Department of Housing and Community Development pursuant to Cal. Health and Safety Code § 50093.
NON-RESTRICTED UNITS.
All units within a housing development excluding the target units.
QUALIFIED HOUSING DEVELOPMENT.
A housing development in which the applicant agrees to provide the following:
(a) At least 5% of the total units of the housing development as target units affordable to very low-income households;
(b) At least 10% of the total units of the housing development as target units affordable to lower-income households;
(c) At least 10% of the total units in a common interest development, as defined in Cal. Civil Code § 1351, as target units affordable to moderate-income households, provided that all units in the development are offered to the public for sale subject to the equity sharing and restrictions specified in Cal. Government Code § 65915(c)(2); or
(d) Senior citizen housing.
QUALIFYING RESIDENT.
Senior citizens or other persons eligible to reside in a senior citizen housing.
SENIOR CITIZEN HOUSING.
A senior citizen housing development as defined in Cal. Civil Code §§ 51.3 and 51.12, or mobile home park that limits residency based on age requirements for housing for older persons pursuant to Cal. Civil Code §§ 798.76 or 799.5.
TARGET UNIT.
A dwelling unit in a housing development which will be reserved for sale or rent to, and affordable to, very low-, lower-income or moderate-income households, and qualifying residents, so as to qualify for a density bonus and additional incentives pursuant to this section.
VERY LOW-INCOME HOUSEHOLD.
Households whose income does not exceed the very low-income limits applicable to Los Angeles County, as published and periodically updated by the state's Department of Housing and Community Development pursuant Cal. Health and Safety Code § 50105.
(C) Density bonus.
(1) This section describes the minimum density bonus, which shall be provided, at the request of an applicant of a qualified housing development when that applicant agrees to provide the following:
(a) At least 5% of the total units of the housing development as target units affordable to very low-income households;
(b) At least 10% of the total units of the housing development as target units affordable to lower-income households;
(c) At least 10% of the total units in a common interest development, as defined in Cal. Civil Code § 1351, as target units affordable to moderate-income households, provided that all units in the development are offered to the public for sale subject to the equity sharing and restrictions specified in Cal. Government Code § 65915(c)(2); or
(d) Senior citizen housing.
(2) For purposes of calculating the amount of density bonus, the applicant who requests a density bonus pursuant to this chapter shall elect whether the bonus shall be awarded on the basis of (C)(1)(a), (b), (c), or (d) above.
(3) In determining the minimum number of density bonus units to be granted to a housing development in a residential district pursuant to above division (C)(1), the maximum allowable residential density for the site shall be multiplied by a density bonus percentage. The density bonus percentage is determined according to the percentage of units in the housing development provided as target units affordable to very low-income households, lower-income households, and moderate-income households if a common interest development, or the housing development's status as senior citizen housing. The density bonus percentages for very low-income households, lower-income households, and moderate-income households if a common interest development are as shown below in Tables A through C, and the density bonus percentages for senior citizen housing are set forth in (C)(4) below.
Table A: Very Low Income Units | |
Percentage of Very Low-Income Units | Density Bonus Percentage |
Table A: Very Low Income Units | |
Percentage of Very Low-Income Units | Density Bonus Percentage |
5 | 22.0 |
6 | 22.5 |
7 | 25.0 |
8 | 27.5 |
9 | 30.0 |
10 | 32.5 |
11 | 35.0 |
Table B: Lower-Income Units | |
Percentage of Very Low-Income Units | Density Bonus Percentage |
Table B: Lower-Income Units | |
Percentage of Very Low-Income Units | Density Bonus Percentage |
10 | 20.0 |
11 | 21.5 |
12 | 23.0 |
13 | 24.5 |
14 | 26.0 |
15 | 27.5 |
16 | 29.0 |
17 | 30.5 |
18 | 32.0 |
19 | 33.5 |
20 | 35.0 |
Table C: Moderate-Income Common Interest Development | |
Common Interest Development Percentage of Moderate-Income Units | Density Bonus Percentage |
Table C: Moderate-Income Common Interest Development | |
Common Interest Development Percentage of Moderate-Income Units | Density Bonus Percentage |
10 | 5 |
11 | 6 |
12 | 7 |
13 | 8 |
14 | 9 |
15 | 10 |
16 | 11 |
17 | 12 |
18 | 13 |
19 | 14 |
20 | 15 |
21 | 16 |
22 | 17 |
23 | 18 |
24 | 19 |
25 | 20 |
26 | 21 |
27 | 22 |
28 | 23 |
29 | 24 |
30 | 25 |
31 | 26 |
32 | 27 |
33 | 28 |
34 | 29 |
35 | 30 |
36 | 31 |
37 | 32 |
38 | 33 |
39 | 34 |
40 | 35 |
(4) For senior citizen housing, the density bonus shall be 20% of the number of senior housing units.
(5) The density bonus units shall not be included when determining the total number of target units in the housing development. When calculating the number of permitted density bonus units, any fractions of units shall be rounded to the next larger integer.
(6) The granting of a density bonus shall not be interpreted, in or of itself, to require a General Plan amendment, change of zone, or other discretional approval.
(7) Each housing development meeting the criteria of above division (C)(1) is entitled to only one bonus density and may not combine density bonuses from more than one category listed above in division (C)(1).
(8) The applicant may elect to accept a lesser density bonus percentage than what is shown in the above tables. If the applicant elects to accept a lesser density bonus percentage, no reduction will be allowed in the number of target units required.
(D) Target unit requirements.
(1) Target units should be constructed concurrently with non-restricted units unless both the city and applicant agree within the density bonus housing agreement to an alternative scheduled for development.
(2) Target units shall remain restricted and affordable to the designated group for a period of 30 years (or longer period of time if required by the construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy program).
(3) In determining the maximum affordable rent or affordable sales price of target units the following household and unit size assumptions shall be used, unless the housing development is subject to different assumptions imposed by other governmental regulations:
Housing Unit Type | Assumed Persons Per Housing Unit | |
Non-Senior Units | Senior Units | |
SRO (residential hotel) unit | 75% of 1 person | 75% of 1 person |
0 bedroom (studio) | 1 person | 1 person |
1 bedroom | 2 persons | 1 person |
2 bedrooms | 3 persons | 2 persons |
(4) Target units shall be built on-site and, when practical, be reasonably dispersed within the housing development. Where feasible, the number of bedrooms in the target units should be equivalent to the bedroom mix of the non-target units of the housing development; except that the applicant may include a higher proportion of target units with more bedrooms. The design and appearance of the target units shall be compatible with the design of the total housing development. Housing developments shall comply with all applicable development standards, except those which may be modified as provided by this section.
(5) Circumstances may arise in which the public interest would be served by allowing some or all of the target units associated with one housing development to be produced and operated at an alternative site. Where the applicant and the city form such an agreement, the resulting linked developments shall be considered a single housing development for purposes of this section. Under these circumstances, the applicant shall be subject to the same requirements of this section for the target units to be provided on the alternative site.
(6) A density bonus housing agreement shall be made a condition of the discretionary planning permits (e.g., tract maps, parcel maps, site plans, planned development or conditional use permits, and the like) for all housing developments provided a density bonus or a development incentive pursuant to this section. The agreement shall be recorded as a restriction on the parcel or parcels on which the target units will be constructed. The density bonus agreements shall be consistent with division (J) of this section. In the event that the applicant enters into an inclusionary or other regulatory agreement with the city, then a separate density bonus housing agreement shall not be required.
(E) Senior citizen housing development standards. The following development standards apply to senior citizen housing that qualifies the applicant for a density bonus pursuant to this section, except if otherwise reduced/revised at the request of the applicant and approved by the city as an additional incentive(s) pursuant to division (F) of this section.
(1) Minimum floor area per dwelling unit:
(a) Zero-bedroom: 400 sq. ft.
(b) One-bedroom: 450 sq. ft.
(c) Two-bedroom: 600 sq. ft.
(2) Minimum building facilities and features:
(a) Laundry facilities: one washer and dryer per five dwelling units or fraction thereof.
(b) Elevator(s): required for two plus story buildings, number dependent on design.
(c) Lounge, lobby and group recreation facilities, including kitchen and bathrooms: 20 sq. ft. per dwelling unit.
(d) Private storage space in interior or exterior of units in addition to clothes closets: 150 cu. ft. per dwelling unit.
(e) Twenty four hour medical, security, and smoke detector alarm system to central location required in each unit.
(f) Grab bars installed per standards of Cal. Administrative Code Title 24 required in all bathrooms.
(g) Handrails required in all public hallways.
(3) Minimum open space:
(a) Private open space per unit, in a patio or balcony: 60 sq. ft.
(b) Common open space per unit with minimum 15 feet dimension: 125 sq.ft.
(F) Additional incentives.
(1) This section includes the provision for providing additional incentives as specified in Cal. Government Code § 65915(d), (e) and (h) for qualified housing developments. An applicant may request specific incentives pursuant to this section only when the housing development is eligible for a density bonus pursuant to division (C) of this section.
(2) By right parking incentives.
(a) Qualified housing developments shall be granted the following maximum parking standards listed below, inclusive of handicapped and guest parking, which shall apply to the entire development, not just the restricted target units, when requested by the project applicant.
1. Studio and one bedroom dwelling units: one on-site parking space.
2. Two to three bedroom dwelling units: two on-site parking spaces.
3. Four or more bedroom dwelling units: two and one-half on-site parking spaces.
(b) If the total number of spaced required results in a fractional number, it shall be rounded up to the next whole number. For purposes of the above division (F)(1), this parking may be provided through tandem parking or uncovered parking, but not through on-street parking.
(3) By right additional incentives. In addition to by right parking incentives identified in the above division (F)(1), qualified housing developments shall be granted one, two or three additional incentives as follows:
(a) For qualified housing developments with target units affordable to very low-income households:
1. One additional incentive if 5% of the units (not including the density bonus units) are target units affordable to very low-income households.
2. Two additional incentives if 10% of the units (not including the density bonus units) are target units affordable to very low-income households.
3. Three additional incentives if 15% of the units (not including the density bonus units) are target units affordable to very low-income households.
(b) For qualified housing developments with target units affordable to lower-income households:
1. One additional incentive if 10% of the units (not including the density bonus units) are target units affordable to lower-income households.
2. Two additional incentives if 20% of the units (not including the density bonus units) are target units affordable for lower-income households.
3. Three additional incentives if 30% of the units (not including the density bonus units) are target units affordable to lower-income households.
(c) For qualified housing developments in a common interest development with target units affordable to moderate-income households:
1. One incentive if 10% of the units (not including the density bonus units) are target units affordable to moderate-income households.
2. Two additional incentives if 20% of the units (not including the density bonus units) are target units affordable for moderate-income households.
3. Three additional incentives if 30% of the units (not including the density bonus units) are target units affordable to moderate-income households.
(4) Other concession or incentives. An applicant of a qualified housing development may also submit a proposal for other concessions or incentives necessary to make the development economically feasible and to accommodate the density bonus and additional incentives otherwise permitted by this section. The need for other additional incentives will vary for different housing developments and shall be determined on a case-by-case basis. The applicant shall provide evidence that the proposed concessions and incentives result in identifiable, financially sufficient, and actual cost reduction. A proposal for concessions or incentives pursuant to this division shall neither reduce nor increase the number of additional incentives the applicant is otherwise entitled to pursuant to the above divisions (2) and (3). Concessions or incentives proposed pursuant to this division may include, but are not limited to, any of the following:
(a) A reduction of site development standards or a modification of zoning code or architectural design requirements which exceed the minimum building standards provided in Part 2.5 (commencing with § 18901) of Division 13 of the Cal. Health and Safety Code. These may include, but are not limited to, one or more of the following:
1. Reduced minimum lot sizes and/or dimensions.
2. Reduced minimum lot setbacks.
3. Reduced minimum outdoor and/or private outdoor living area.
4. Increased maximum lot coverage.
5. Increased maximum building height and/or stories.
6. Reduced on site-parking standards, including the number or size of spaces and covered parking requirements.
7. Reduced minimum building separation requirements.
8. Reduced street standards; e.g. reduced minimum street widths.
9. Minimum floor area requirements.
10. Location of walls/fences in setbacks.
11. Exterior noise standards for second and third story balconies.
(b) Approval of mixed-use zoning in conjunction with the qualified housing development if commercial, office, industrial, or other land uses will reduce the cost of the housing development and if the commercial, office, industrial, or other land uses are compatible with the housing project and the existing or planned development in the area where the qualified housing development will be located.
(c) Other regulatory incentives or concessions proposed by the applicant or the city that result in identifiable, financially sufficient, and actual cost reductions or avoidance.
(5) The city may approve or deny the additional incentive(s) requested by the applicant pursuant to division (F)(4) of this section in its sole and absolute discretion.
(6) The granting of an additional incentive(s) pursuant to this section shall not be interpreted to require a General Plan amendment, a change of zone, or other discretionary approval.
(7) Equivalent financial incentive. The city may offer an equivalent financial incentive in lieu of granting a density bonus and/or a development incentive(s). The value of the equivalent financial incentive shall be equal to at least the land cost per dwelling unit savings that would result from a density bonus and must contribute significantly to the economic feasibility of providing the target units pursuant to this section.
(G) Qualified housing developments with childcare facilities.
(1) A qualified housing development that includes a childcare facility, which will be located on the premises of, as part of, or adjacent to, the housing development, is eligible for either of the following:
(a) An additional density bonus that is an amount of square feet of residential space that is equal to or greater than the amount of square feet in the childcare facility.
(b) One additional incentive to that otherwise allowed pursuant to division (F) of this section that contributes significantly to the economic feasibility of the construction of the childcare facility.
(2) If an additional density bonus or development incentive is granted pursuant to this section, the following conditions of approval are required of the development:
(a) The childcare facility shall remain in operation for a period of time that is as long as or longer than the period of time during which the target units are required to remain affordable pursuant to division (D) of this section.
(b) Of the children who attend the childcare facility, the number children of the very low-, lower- and moderate-income households shall equal a percentage that is equal to or greater than the percentage of target units in the housing development for very low-, lower-, or moderate-income households.
(3) Not withstanding any provisions of this section, the city shall not be required to grant the additional density bonus or addition development incentive if it finds, based upon substantial evidence, that the city has adequate childcare facilities.
(H) (1) Donation of land for very low-income units.
(2) An applicant for a tentative parcel map, parcel map, or other residential development project, that donates land to the city is eligible for a density bonus above the otherwise maximum allowable residential density for the applicant's development project, if all of the following conditions are met:
(a) The applicant donates and transfers the land to the city or a housing developer approved by the city no later than the date of approval of the final subdivision map, parcel map, or residential development application for the applicant's project.
(b) The developable acreage and zoning classification of the land transferred are sufficient to permit construction of units affordable to very low-income households in an amount that is equal to 10% or more of the number of residential units in the applicant's project.
(c) The land transferred is at least one acre in size or is of sufficient size to permit development of at least 40 target units, has the appropriate General Plan designation, is appropriately zoned for residential development at the density of no less than 30 units per acre, and is or will be served by adequate public facilities and infrastructure.
(d) The land transferred shall have, no later than the date the land is transferred, all of the permits and approvals that are necessary for the development of the very low-income housing units on the transferred land, other than architectural review and building permits.
(e) The land transferred and the target units shall be subject to a deed restriction ensuring continued affordability and restricted use of the target units consistent with the requirements set forth in division (J)(3) of this section.
(f) The land transferred is within the boundary of the residential development, or if the city agrees, within one-quarter mile of the boundary of the applicant's project.
(g) The proposed source of funding for the very low-income residential units is identified before the land is transferred.
(h) The bonus density mandated by this section is in addition to a density bonus to which the applicant may otherwise be entitled for a qualified housing development pursuant to division (C), up to a maximum combined density bonus of 35% if an applicant requests a bonus density pursuant to this section and division (C). The density bonus provided by this section is determined by the number of units affordable to very low-income households on the transferred land that is equal to a percentage of the number of units in the applicant's project. When the number of target units is equal to 10% or more of units in the applicant's project before the density bonus, the maximum allowable residential density of the applicant's project is multiplied by the density bonus percentage shown below in Table 155.625.1(H).
Table 155.625.1(H) Density Bonus for Land Transferred for Very Low-Income Units | |
Percentage of Units in Applicant’s Project Equal to Number of Very Low-Income Units on Transferred Land | Density Bonus Percentage |
Table 155.625.1(H) Density Bonus for Land Transferred for Very Low-Income Units | |
Percentage of Units in Applicant’s Project Equal to Number of Very Low-Income Units on Transferred Land | Density Bonus Percentage |
10 | 15 |
11 | 16 |
12 | 17 |
13 | 18 |
14 | 19 |
15 | 20 |
16 | 21 |
17 | 22 |
18 | 23 |
19 | 24 |
20 | 25 |
21 | 26 |
22 | 27 |
23 | 28 |
24 | 29 |
25 | 30 |
26 | 31 |
27 | 32 |
28 | 33 |
29 | 34 |
30 | 35 |
(I) Application process.
(1) An application for a density bonus and additional incentives pursuant to this section shall be processed concurrently with any other application(s) required for the housing development.
(2) Preliminary plan and pre-application meeting. An applicant proposing a housing development pursuant to this section may submit a preliminary plan prior to submittal of any formal request for approval of a qualified housing development. Applicants are encouraged to schedule a pre-application conference with the Director of Planning, or designated staff, to discuss and identify potential application issues, and for early feedback and guidance on the means for complying with this section. No charge shall be required for the pre-application conference. The preliminary plan shall be made on forms provided by the Planning and Development Department and shall include the following information:
(a) A brief description of the proposed housing development, including the number of units, target units, density bonus units proposed, and additional incentive(s) requested.
(b) The zoning and General Plan designations and assessors parcel number(s) of the project site.
(c) A vicinity map and preliminary site plan, drawn to scale, including building footprints, driveway and parking layout.
(3) Residential density bonus application and filing fee.
(a) Filing. Application for a density bonus and additional incentives for a qualified housing development shall be made on forms provided by the Planning and Development Department. The application shall include such plans as may reasonably be required for a complete understanding of the proposal.
(b) Reapplication. A person may not file and the Planning and Development Department shall not accept an application which is the same, or substantially the same, as an application on which final action has been taken by the city within 12 months prior to the date of said application, unless accepted by a motion of the City Council.
(c) Filing fee. The filing fee shall be established by resolution of the City Council and paid at the time the application is submitted.
(4) Application review.
(a) Upon receipt of an application for a density bonus and additional incentives, city staff shall review the application and inform the applicant as to the completeness of the submittal, of additional materials required, if any, and project issues of concern. City staff shall also inform applicant of the procedures for compliance with this section.
(b) Public hearings. When an application for a density bonus and additional incentives is deemed complete, the matter shall be set for public hearings to be held by the Planning Commission and City Council. Notices of the hearings shall be given pursuant to Cal. Government Code § 65091. Notices shall include the dates, times, and places of the public hearings. Also included shall be a general explanation of the matter to be considered and a general description of the location of the subject property as specified in Cal. Government Code § 65094. Notices shall be sent no less than ten days prior to any action taken on the application. Signs, at least eight inches by ten inches, shall be posted on the subject property setting forth substantially the same information included in the mailed notice. There shall be a minimum of two such signs on the subject property. Said signs shall be posted at least ten days prior to the public hearings.
(c) Prior to the public hearing by the Planning Commission, city staff shall inform the applicant that the requested development incentive(s) shall be recommended for approval with the proposed housing development or, if city staff believes that one of the findings for City Council denial of the request can be made pursuant to division (6)(b) below, that alternative or modified incentives pursuant to division (F) of this section shall be recommended in lieu for the requested incentives, or recommended for denial. If alternative or modified incentives are recommended, the recommendation shall establish how the alternative or modified incentives can be expected to have an equivalent affordability effect as the requested incentive(s).
(5) Planning Commission review.
(a) The Planning Commission shall investigate the facts bearing on each case to determine if the proposed housing development, density bonus, and additional incentives requested by the applicant are consistent with the intent and purpose of this section, and shall accordingly recommend approval of the application with conditions, or recommend denial of the application if any one of findings for City Council denial of the application can be made pursuant to division (I)(7) below.
(b) The Planning Commission shall announce its findings by formal resolution. Said resolution shall recite the recommendation of the Commission and set forth the recommended conditions of approval. The Planning Commission's recommendation shall be filed with the City Council, and a copy shall be mailed to the applicant.
(6) City Council approval.
(a) Final approval or disapproval of an application for a density bonus and additional incentive(s) requested by the applicant for a qualified housing development shall be made by the City Council. Before taking final action, the City Council shall consider the recommendation of the Planning Commission on the application.
(b) The City Council shall grant the density bonus and additional incentive(s) requested by the applicant unless the Council makes a written finding, based on substantial evidence, of any of the following:
1. The additional incentive(s) is not required in order to provide affordable housing costs, as defined in Cal. Health and Safety Code § 50052.5, or affordable rents for the target units to be set as specified in division (D) of this section.
2. The additional incentive(s) would have a specific adverse impact upon the public health or safety, or the physical environment, or on any real property that is listed in the California Register of Historical Resources and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact with rendering the development unaffordable to low- and moderate-income households. For purposes of this division, a "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 the application was deemed complete. Inconsistency with the city's Zoning Ordinance, or General Plan land use designation, shall not constitute a specific adverse impact upon the public health or safety or the physical environment or on any real property that is listed in the California Register of Historical Resources.
3. The incentive(s) would be contrary to state or federal law.
(7) Conditions of approval.
(a) In reviewing an application for a density bonus and additional incentive(s), the Planning Commission shall recommend, and the City Council shall impose in approving an application, such conditions deemed necessary to ensure implementation and compliance with this chapter.
(b) Approval of an application for a density bonus and additional incentive(s) shall require execution of a density bonus housing agreement pursuant to division (J) of this section to ensure the continued affordability and restricted use of target units during the restricted period in accordance with division (D) of this section.
(J) Density bonus housing agreement.
(1) Applicants requesting a density bonus and additional incentive(s) pursuant to this section shall agree to enter into a density bonus housing agreement with the city. A density bonus housing agreement shall be made a condition of approval for all discretionary city approvals related to the housing development (i.e., tentative maps, parcel maps, planned unit developments, conditional use permits). The terms of the draft agreement shall be reviewed and revised as appropriate by the Director of Planning, who shall formulate a recommendation to the City Council for final approval. Following execution of the agreement by all parties, the completed density bonus housing agreement, or memorandum thereof, the agreement shall be recorded and the conditions therefrom filed on the parcel or parcels designated for the construction of the target units. The approval and recordation shall take place prior to final map approval, or, where a map is not being processed, prior to issuance of building permits for such parcels or units. The density bonus housing agreement shall be binding to all future owners and successors in interest.
(2) The density bonus housing agreement shall include at least the following:
(a) The total number of units approved for the housing development, including the number of target units.
(b) A description of the household income group or qualifying residents to be accommodated by the target units as outlined in division (C) of this section.
(c) The location, unit sizes (square feet), and number of bedrooms of the target units.
(d) Tenure of use restrictions for target units of at least 30 years, in accordance with division (D) of this section.
(e) Schedule for completion and occupancy of target units.
(f) Description of the development incentive(s) or equivalent financial incentives being provided by the city.
(g) A description of remedies for breach of the agreement by either party (the city may identify tenants or qualified purchasers as third party beneficiaries under the agreement).
(h) Other provisions to ensure implementation and compliance with this section.
(3) The density bonus housing agreement shall also include provisions to ensure the continued affordability and restricted use of target units during the restricted period as follows:
(a) Rents for target units that qualified the housing development for a density bonus shall be set at an affordable rent as defined in the Cal. Health and Safety Code § 50053.
(b) Owner-occupied target units shall be available at an affordable housing cost as defined in the Cal. Health and Safety Code § 50052.5.
(c) The initial occupants of moderate-income target units in common interest development, which qualified the housing development for a bonus density, shall be persons and families of moderate-income, as defined the Cal. Health and Safety Code § 50093.
(d) Units in senior citizen housing that qualified for a density bonus shall be occupied by qualifying residents during the use restriction period.
(e) The initial owner/occupant of each owner-occupied target unit shall execute an instrument or agreement approved by the city restricting the sale of the target unit in during the applicable use restriction period in accordance with this section. Such instrument or agreement shall be recorded against the parcel containing the target unit, and shall contain such provisions as the city may require in order to ensure continued compliance with this section and the state's density bonus law.
(f) The city shall enforce an equity sharing agreement, unless it is in conflict with the requirements of another public funding source or law. The following shall apply to the equity sharing agreement:
1. Upon resale, the seller of unit shall retain the value of any improvements, the down payment, and the seller's proportionate share of appreciation. The city shall recapture any initial subsidy, and its proportionate share of appreciation.
2. For purposes of this division, the city's initial subsidy shall be equal to the fair market value of the home at the time of initial sale minus the initial sale price to the moderate-income household, plus the amount of any down payment assistance or mortgage assistance.
3. For purposes of this division, the city's proportional share of appreciation shall be equal to the ratio of the city's initial subsidy to the fair market value of the unit at the time of initial sale.
(g) In the case of rental target units, the density bonus housing agreement shall provide for the following provisions governing the use of target units during the use restriction period:
1. The rules and procedures for qualifying tenants, establishing affordable rent, filling vacancies, and maintaining target units for qualified tenants.
2. Provisions requiring owners to verify tenant incomes, when applicable, and maintain books and records to demonstrate compliance with this section.
3. Provisions requiring owners to submit an annual report to the city, which includes the name, address, and income, when applicable, of each person occupying a target unit, and the bedroom size and monthly rent or cost of the target unit occupied by such person.
(Ord. 1048, passed 12-12-13)