Chapter 17.88 — DENSITY BONUS AND DEVELOPMENT INCENTIVES

The purpose of this section is to provide incentives for the production of housing for very low, low, and moderate income, special needs, and senior households in accordance with Government Code Sections 65915 through 65918. In enacting this section, it is the intent of the city council to facilitate the development of affordable housing and to implement the goals and policies of the city's general plan housing element.

(Ord. No. 1051, § 1, 5-22-13)

The City of Coachella shall grant one density bonus, with concessions or incentives, as specified in Section 17.88.040 entitled number and types of incentives and bonuses allowed, or provide other incentives or concessions of equivalent financial value based upon the land cost per dwelling unit, when the applicant for the housing development seeks and agrees to construct a housing development, excluding any units permitted by the density bonus awarded pursuant to this section, that will contain at least one of the following:

A.

Ten (10) percent of the total units of a housing development for lower income households;

B.

Five percent of the total units of a housing development for very low income households;

C.

Housing for special needs populations;

D.

A senior citizen housing development; or

E.

Ten (10) percent of the total dwelling units in a common interest development as defined in Section 1351 of the California Civil Code for persons and families of moderate income, provided that all units in the development are offered to the public for purchase.

(Ord. No. 1051, § 1, 5-22-13)

The following general provisions apply to the application and determination of all incentives and bonuses:

A.

All density calculations resulting in fractional units shall be rounded up to the next whole number;

B.

The granting of a density bonus shall not be interpreted, in and of itself, to require a general plan amendment, rezone, or other discretionary approval;

C.

The density bonus shall not be included when determining the number of housing units that is equal to five or ten (10) percent of the total;

D.

Upon request by the applicant, the city shall not require that a housing development meeting the requirements of Section (B), Eligibility for incentives and bonuses provide a vehicular parking ratio, inclusive of handicapped and guest parking, that exceeds the following:

1.

Zero (studio) to one bedrooms: One on-site parking space per unit.

2.

Two to three bedrooms: Two on-site parking spaces per unit.

3.

Four and more bedrooms: Two and one-half parking spaces per unit.

E.

If the total number of parking spaces required for a housing development is other than a whole number, the number shall be rounded up to the next whole number. For purposes of this subsection, a development may provide on-site parking through tandem parking or uncovered parking, but not through on-street parking.

F.

The city shall not apply any development standard that would have the effect of precluding the construction of a housing development meeting the requirements of Section 17.88.020 entitled "Eligibility for incentives and bonuses" at the densities or with the incentives permitted by this section. An applicant may submit to the city a proposal for the waiver or reduction of development standards. Nothing in this subsection, however, shall be interpreted to require the city to waive or reduce development standards if the waiver or reduction would have a specific adverse impact, as defined in paragraph (2) of subdivision (d) of Section 65589.5 of the California Government Code, upon public health and safety or the physical environment or on any real property that is listed in the California Register of Historical Resources and for which the city determines there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact. Furthermore, the applicant shall be required to prove that the waiver or modification is necessary to make the target units economically feasible.

(Ord. No. 1051, § 1, 5-22-13)

A.

General Project Density Bonus. A housing development that satisfies all applicable provisions of this section shall be entitled to the following density bonus:

1.

For developments providing lower income target units, a 20-percent base density bonus plus a one and one-half-percent supplemental increase over that base for every one percent increase in low income units above ten (10) percent. The maximum density bonus allowed including supplemental increases is thirty-five (35) percent;

2.

For developments providing very low income target units, a 20-percent base density bonus plus a two and one-half-percent supplemental increase over that base for every one percent increase in very low income units above five percent. The maximum density bonus allowed including supplemental increases is thirtyfive (35) percent;

3.

For senior citizen housing developments, a flat twenty (20) percent density bonus;

4.

For common interest developments providing moderate income target units, a five percent base density bonus plus a one percent increase in moderate-income units above ten (10) percent. The maximum density bonus allowed including supplemental increases is thirty-five (35) percent.

B.

Number of Incentives or Concessions. In addition to the eligible density bonus percentage described in this section, an applicant may request one or more incentives or concessions in connection with its application for a density bonus as follows:

1.

One incentive or concession for projects that include at least ten percent of the total units for lower income households, at least five percent for very low income households, or at least ten (10) percent for persons and families of moderate income in a common interest development;

2.

Two incentives or concessions for projects that include at least twenty (20) percent of the total units for lower income households, at least ten (10) percent for very low income households, or at least twenty (20) percent for persons and families of moderate income in a common interest development;

3.

Three incentives or concessions for projects that include at least thirty (30) percent of the total units for lower income households, at least fifteen (15) percent for very low income households, or at least thirty (30) percent for persons and families of moderate income in a common interest development.

C.

Available Incentives and Concessions. The following incentives and concessions are available for compliance with this section:

1.

A reduction in the site development standards or a modification of zoning code requirements or architectural design requirements that exceed the minimum building standards approved by the California Building Standards Commission as provided in Part 2.5 Section 18907 of Division 13 of Health and Safety Code, including, but not limited to, a reduction in setback and square footage requirements and in ratio of vehicle parking spaces that would otherwise be required and that results in identifiable, financially sufficient, and actual cost reductions;

2.

Approval of mixed-use development in conjunction with the housing development if the nonresidential land uses will reduce the cost of the housing development and the nonresidential land uses are compatible with the housing development and surrounding development;

Other regulatory incentives or concessions proposed by the applicant or that the city determines will result in identifiable, financially sufficient, and actual cost reductions;

4.

Priority processing of a housing development that provides income-restricted units.

D.

Donations of Land. Additional density bonus and incentives and concessions may be provided for donations of land to the city in the following manner:

1.

When an applicant for a tentative subdivision map, parcel map, or other residential development approval donates land to the city and agrees to include a minimum of ten (10) percent of the total units before the density bonus for very low income households, as provided for in this subsection, the applicant shall be entitled to a 15-percent base density bonus plus a one-percent supplemental increase for each additional percentage of very low income units to a maximum density bonus of thirty-five (35) percent;

2.

The density bonus provided in this subsection shall be in addition to any other density bonus provided by this section to a maximum combined density bonus of thirty-five (35) percent;

3.

The applicant shall be eligible for the increased density bonus described in this subsection if all of the following conditions are met:

a.

The applicant donates and transfers the land no later than the date of approval of the final subdivision map, parcel map, or residential development application;

b.

The developable acreage and zoning designation of the land being transferred are sufficient to permit construction of units affordable to very low income households in an amount not less than ten (10) percent of the number of residential units of the proposed development;

c.

The transferred land is at least one acre in size or is of sufficient size to permit development of at least forty (40) units, has the appropriate general plan land use and zoning designations, and is or will be served by all required public facilities and infrastructure;

d.

The transferred land and the affordable units shall be subject to a deed restriction ensuring continued affordability of the units consistent with the requirements of this section;

e.

The land is transferred to the city or to a housing developer approved by the city; and

f.

The transferred land shall be within the boundary of the proposed development or, at the city's approval, within one-quarter mile of the boundary of the proposed development.

4.

Nothing in the provisions of this section shall be construed to enlarge or diminish the authority of the city to require a developer to donate land as a condition of development.

E.

Child Care Facilities. Additional density bonus and incentives and concessions may be provided for development of child care facility in the following manner:

1.

Housing developments meeting the requirements of Section 17.88.020 entitled "eligibility for incentives and

bonuses" and including a child care facility that will be located on the premises of, as part of, or adjacent to the housing development shall receive either of the following:

a.

An additional density bonus that is an amount of square footage of residential space equal to or greater than the amount of square footage in the child care facility;

b.

An additional incentive or concession that contributes significantly to the economic feasibility of the construction of the child care facility.

2.

The density bonus housing agreement for the housing development shall ensure that:

a.

The child care facility shall remain in operation for a period of time as long as or longer than the period of time during which the target units are required to remain affordable; and

b.

Of the children who attend the child care facility, the children of very low income households, lower income households, or persons or families of moderate income shall equal a percentage that is equal to or greater

than the percentage of target units that are required pursuant to Section 17.88.020 entitled "eligibility for incentives and bonuses".

3.

The city shall not be required to provide a density bonus or incentive or concession for a child care facility if it makes a written finding, based upon substantial evidence, that the community has adequate child care facilities.

F.

Condominium Conversion Incentives for Low-Income Housing Development. When an applicant for approval to convert apartments to a condominium project agrees to the following, the city shall grant either a density bonus of twenty-five (25) percent over the number of apartments (to be provided within the existing structure or structures proposed for conversion) or provide other incentives of equivalent financial value:

1.

Provide at least thirty-three (33) percent of the total units of the proposed condominium project to persons and families of low or moderate income; or

2.

Provide at least fifteen (15) percent of the total units of the proposed condominium project to lower income households; and

3.

Agree to pay for the reasonably necessary administrative costs incurred by the city.

G.

For purposes of this subsection, "other incentives of equivalent financial value" shall not be construed to require the city to provide cash transfer payments or other monetary compensation but may include the reduction or waiver of requirements which the city might otherwise apply as conditions of conversion approval. Nothing in this subsection shall be construed to require the city to approve a proposal to convert apartments to condominiums.

H.

An applicant shall be ineligible for a density bonus or other incentives under this subsection if the apartments proposed for conversion constitute a housing development for which a density bonus or other incentive was previously provided.

(Ord. No. 1051, § 1, 5-22-13)

As required by state law, the location of density bonus units within the housing development may be at the discretion of the developer. However, the inclusionary units shall be dispersed throughout the development (where feasible); shall contain, on average, the same number of bedrooms as the non-inclusionary units in the development; and shall be compatible with the design or use of the remaining units in terms of appearance, materials, and quality finish.

(Ord. No. 1051, § 1, 5-22-13)

A.

If a housing development providing low- or very low-income target units receives only a density bonus, the target units must remain restricted to low or very low income households for a minimum of thirty (30) years from the date of issuance of the certificate of occupancy.

B.

If a housing development providing low or very low income target units receives both a density bonus and an additional incentive, the target units must remain restricted to low or very low income households for a minimum of fifty (50) years from the date of issuance of the certificate of occupancy.

C.

In the case of a common interest housing development providing moderate income target units, the initial occupant of the target unit must be a person or family of moderate income. Upon resale any appreciation shall be shared between the seller and the city. The seller of the target units shall retain the value of any improvements, the down payment, and the seller's proportionate share of appreciation, which shall be used within three years for any of the purposes described in subdivision (e) of Section 33334.2 of the California Health and Safety Code that promote homeownership. The city's proportionate share is the difference between the original fair market value of the home and the initial sales price of the home. This allows the city to recover the financial assistance to the homeowner that was provided at the initial sales to make the home affordable to the buyer.

(Ord. No. 1051, § 1, 5-22-13)

A.

Process for Approval. The density bonus and incentives and concessions request shall be considered in conjunction with any necessary development entitlements for the project. The designated approving authority for density bonuses shall be the city council. In approving the density bonus and any related incentives or concessions, the city and applicant shall enter into a density bonus agreement. The form and content of the density bonus agreement shall be determined by the city.

B.

Approval Required Unless Denial Findings Made. The city shall grant the density bonus, incentives, and concessions requested by the applicant unless the city makes a written finding, based upon substantial evidence, of either of the following:

1.

The incentive or concession is not required in order to provide for affordable housing costs or affordable rents;

2.

The incentive or concession would have a specific adverse impact, as defined in paragraph (2) of subdivision (d) of Section 65589.5 of the California Government Code, upon public health and safety or physical environment or any real property that is listed in the California Register of Historical Resources and for which the city determines there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact without rendering the development unaffordable to low and moderate income households.

(Ord. No. 1051, § 1, 5-22-13)