Chapter 17.102 — DENSITY BONUS AND OTHER DEVELOPER INCENTIVES

This density bonus chapter is intended to provide incentives for the production of housing in accordance with Sections 65915 and65917 of the California Government Code for very low, low, and moderate income households and senior households. In enacting this chapter, it is the intent of the city of Folsom to facilitate the development of affordable housing and to implement the goals, objectives, and policies of the city’s housing element. (Ord. 1145 § 2 (part), 2011)

Whenever the following terms are used in this chapter, they shall have the meaning established by this section:

A. “Additional incentives or concessions” means such regulatory incentives or concessions as
specified in California Government Code Section 65915(i) which include the reduction of
site development standards or a modification of zoning code requirements or architectural
design requirements, approval of mixed use zoning in conjunction with the housing
development, direct financial assistance, or other regulatory incentives or concessions
which result in identifiable cost reductions.

B. “Affordable rent” means monthly housing expenses, including a reasonable allowance for
utilities (excluding telephone), for rental target units reserved for very low or low income
households, not exceeding the following calculations:

1. Very low income: thirty percent of fifty percent of area median income (adjusted for
household size).

2. Low income: thirty percent of eighty percent of area median income (adjusted for
household size).

C. “Affordable sales price” means a sales price at which moderate, low, or very low income
households can qualify for the purchase of target units, calculated on the basis of
underwriting standards of mortgage financing available for the development.

D. “Affordable unit” means a housing unit affordable to a low income household or very low
income household.

E. “Area median income” means the median income for the Sacramento Primary Metropolitan
Statistical Area (PMSA) (El Dorado, Placer and Sacramento Counties) as established and
periodically updated by the U.S. Department of Housing and Urban Development.

F. “Condominium” means and includes:

1. “Condominium” as defined by Section 783 of the Civil Code;

2. “Community apartment project” as defined by Section 11004 of the Business and
Professions Code;

3. “Stock cooperative” as defined by Section 11003.2 of the Business and Professions

Code; and

4. “Planned development” as defined by Section 11003 of the Business and Professions
Code.

The term “condominium” specifically includes, but is not limited to, the conversion of any
existing structure for sale pursuant to a method described in subsections (F)(1) through (4)
of this section.

“Condominium conversion” or “conversion” means a change in the ownership of a parcel
or parcels of property, together with structures thereon, whereby the parcel or parcels and
structures previously used as rental units are changed to condominium ownership.

“Condominium project” or “project” includes the real property and any structures thereon, or any structures to be constructed thereon, which are to be divided into condominium ownership.

“Condominium units” or “units” means the individual spaces within a condominium
project owned as individual estates.

G. “Density bonus” means a density increase over the otherwise maximum allowable
residential density under the city’s land use element of the general plan, zoning ordinances
and any applicable specific plan as of the date of application by the applicant/developer to
the city. (Government Code Section 65915(g).)

H. “Density bonus units” means those residential units granted pursuant to the provisions of
this chapter which exceed the otherwise maximum residential density for the development
site.

I. “Housing cost” means 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 (excluding telephone).

J. “Housing development” means one or more groups of projects for residential units,
including (1) a project to substantially rehabilitate and convert an existing commercial
building to residential use, or (2) the substantial rehabilitation of an existing multifamily
dwelling, as defined in Government Code Section 65863.4(d), where the result of the
rehabilitation would be a net increase in available residential units.

K. “Low income household” means households as defined in Health and Safety Code
Section50079.5, whose income does not exceed the low income limits applicable to the city
as published and periodically updated by the State Department of Housing and Community
Development.

L. “Nonrestricted unit” means all units within a housing development excluding the target
units.

M. “Senior citizen housing development” means a residential development developed,
substantially rehabilitated, or substantially renovated for senior citizens that has at least
thirty-five dwelling units and complies with the requirements in Civil Code Section 51.3.

N. “Target unit” means a dwelling unit within a housing development which will be reserved for sale or rent to very low, low, or moderate income households, or senior residents.

O. “Very low income household” means households as defined in Health and Safety Code Section50105, whose income does not exceed the very low income limits applicable to the city, as published and periodically updated by the State Department of Housing and Community Development.

P. “Moderate income household” means households as defined in Health and Safety Code
Section50093, whose income does not exceed the moderate income limits applicable to the
city, as published and periodically updated by the State Department of Housing and
Community Development.

Q. “Child care facility” means a facility installed, operated, and maintained for the
nonresidential care of children as defined under applicable state licensing requirements for
the facility. Such facilities include, but are not limited to, infant centers, preschools,
extended day care facilities, school-age child care centers, or family day care homes.
(Ord. 1145 § 2 (part), 2011)

A. Density Bonus.

1. The city shall grant a density bonus to an applicant or developer of a housing
development, consisting of five or more dwelling units, who agrees to provide the
following:

a. At least ten percent of the total units of a housing development for low income
households; or

b. At least five percent of the total units of a housing development for very low
income households; or

c. A senior citizen housing development.
All density calculations resulting in fractional units shall be rounded up to the next
whole number.

2. In determining the number of target units to be provided pursuant to this section, the
maximum residential density shall be multiplied by 0.05 where very low income
households are targeted, or by 0.10 where low income households are targeted. The
density bonus units shall not be included when determining the total number of target
units in the housing development. When calculating the required number of target
units, any fractions of units shall be rounded to the next larger number.

3. Amount of Density Bonus.

a. General Density Bonus. The density bonus shall be a density increase of at least
twenty percent, unless a lesser percentage is elected by the applicant/developer
over the otherwise maximum allowable residential density. The amount of
density bonus to which the applicant/developer is entitled shall vary according
to the amount by which the percentage of affordable units exceeds the
percentage set forth in subsection (A)(1) of this section. For each percent
increase above ten percent in the percentage of units affordable to low income
households, the density bonus shall be increased by one and one-half percent up to a maximum of thirty-five percent. For each one percent increase above five
percent in the percentage of units affordable to very low income households, the
density bonus shall be increased by two and one-half percent up to a maximum
of thirty-five percent. For senior citizen housing developments, the density
bonus shall be a flat twenty percent.

b. Density Bonus for Condominium Projects. If a development does not meet the
requirements set forth above, but the applicant/developer agrees or proposes to
construct a condominium project as defined in Section 1351(f) or a planned
development as defined in Section 1351(k) of the Civil Code, in which at least
ten percent of the total dwelling units are reserved for persons and families of
moderate income as defined in Section 50093 of the Health and Safety Code, a
density bonus of at least five percent shall be granted, unless a lesser percentage
is elected by the applicant, over the otherwise maximum allowable residential
density. For each one percent increase above ten percent of the percentage of
units affordable to moderate-income households, the density bonus shall be
increased by one percent up to a maximum of thirty-five percent.

c. Density Bonus for Land Dedication. When an applicant for a tentative
subdivision map, parcel map, or other residential approval donates land to the
city and otherwise satisfies the requirements of Government Code Section
65915(g), the applicant shall be entitled to a fifteen percent increase above the
otherwise maximum allowable residential density. For each one percent increase
above the minimum ten percent land donation, the density bonus shall be
increased by one percent, up to a maximum of thirty-five percent. The land
donation density bonus and general density bonus can be used together, up to a
combined maximum of thirty-five percent (Government Code Section
65915(g).)

4. Upon request by the applicant, the city shall not require that a housing development
meeting the requirements of this section provide a vehicular parking ratio, inclusive
of handicapped and guest parking, that exceeds:

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

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

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

B. Incentives or Concessions.

1. The city shall grant an incentive or concession unless the city makes one of the
following findings:

a. The incentive or concession is not required in order to provide for affordable
housing costs, as defined in Section 50052.5 of the Health and Safety Code, or
for affordable rents for the targeted units.

b. The incentive or concession would have a specific adverse impact, as defined in
Government Code Section 65589.5(d)(2), 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 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.

c. The concession or incentive would be contrary to state or federal law.

2. Number of Incentive(s) or Concession(s). In addition to the eligible density bonus
percentage described in this section, and in accordance with Government Code
Section 65915(d)(2), the applicant shall receive the following number of incentive(s)
or concession(s):

a. One incentive or concession for projects that include at least ten percent of the
total units for low income households, at least five percent for very low income
households, or at least ten percent for persons and families of moderate income
in a condominium or planned development.

b. Two incentives or concessions for projects that include at least twenty percent
of the total units for low income households, at least ten percent for very low
income households, or at least twenty percent for persons and families of
moderate income in a condominium or planned development.

c. Three incentives or concessions for projects that include at least thirty percent of the total units for low income households, at least fifteen percent for very low income households, or at least thirty percent for persons and families of moderate income in a condominium or planned development. (Ord. 1145 § 2 (part), 2011)

A. Target units shall be constructed concurrently with nonrestricted units unless both the city and the applicant/developer agree, in writing, to an alternative schedule for development.

B. If the applicant/developer is entitled to a density bonus pursuant to this chapter and the city
grants at least one additional incentive, the applicant/developer shall agree to and ensure
the continued affordability of all low income and very low income target units for a
minimum of thirty years or such longer period of time as required by the construction or
mortgage financing assistance program, mortgage insurance program, or rental subsidy
program. The target units for low income households shall be affordable at a rent that does
not exceed thirty percent of eighty percent of area median income. The target units for very
low income households shall be affordable at a rent that does not exceed thirty percent of
fifty percent of area median income.

C. 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:

SRO (single room occupancy) unit 75 percent of 1 person
0 bedroom (studio) 1 person
1 bedroom 2 person
2 bedroom 3 person
3 bedroom 4 person
4 bedroom 5 person

D. Target units shall be dispersed within the housing development wherever possible. Where
feasible, the number of bedrooms of the target units shall be equivalent to the bedroom mix
of the nontarget units of the housing development, except that the developer 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 and design standards, except
those which may be modified as provided by this chapter.

E. Compliance with all of the provisions of this chapter shall be made a condition of the
discretionary planning permits (e.g., tentative subdivision maps, tentative parcel maps, site
plans, planned development permits, conditional use permits, etc.) for all housing
developments.

F. Applicant/developer shall execute and record any agreements or documents reasonably deemed necessary by the city to ensure compliance with and implementation of this chapter. (Ord. 1145 § 2 (part), 2011)

The need for additional incentives or concessions will vary for different housing developments. Therefore, the allocation of additional incentives or concessions shall be determined on a case- by-case basis. The additional incentives or concessions may include any of the following:

A. A reduction in 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 (commencing
with Section18901) of Division 13 of the Health and Safety Code, including, but not
limited to:

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 garage
requirements.

7. Reduced minimum building separation requirements.

B. Approval of mixed use zoning in conjunction with the housing development if commercial,
office, industrial, or other nonresidential land uses will reduce the cost of the housing
development and if the commercial, office, industrial, or other nonresidential land uses are
compatible with the housing development and the existing or planned development in the
area where the proposed housing development will be located.

C. Other regulatory incentives or concessions proposed by the applicant/developer or the city
that result in identifiable cost reductions.

D. Priority processing of a housing development that provides income-restricted units or a
senior citizen housing development.
(Ord. 1145 § 2 (part), 2011)

A. Housing developments meeting the requirements of this section 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:

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

2. An additional incentive or concession to be determined by the city at its sole and
complete discretion that contributes significantly to the economic feasibility of the
construction of the child care facility.

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

1. The child care 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.

2. Of the children who attend the child care facility, the children of very low income
households, low income households, or moderate income households shall equal a
percentage that is equal to or greater than the percentage of target units that are
required pursuant to this section.

C. 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.
(Ord. 1145 § 2 (part), 2011)

A. An application pursuant to this chapter for a density bonus and an additional incentive or concession shall be processed concurrently with and in the same manner as any other application(s) required for the housing development unless the development is granted priority processing. If an applicant/developer is entitled to a density bonus pursuant to this chapter, final approval or denial of a request for an additional incentive or concession shall be made by: (1) the planning commission if no concurrent application requires city council approval and the applicant/developer only requests a reduction of site development standards or a modification of zoning code or architectural design requirements; or (2) the city council if a concurrent application requires city council approval or the applicant/ developer requests an additional incentive or concession other than a reduction of site development standards or a modification of zoning code or architectural design requirements.

B. If an applicant/developer is requesting a waiver or modification of development and zoning
standards on the grounds that existing development and zoning standards would otherwise
inhibit utilization of a density bonus, such request shall be made concurrently with any
request for an additional incentive or concession and shall be processed with and approved
or denied in accordance with the provisions herein for the processing and approval or denial
of a request for an additional incentive or concession. Waiver or modification of
development and zoning standards shall only be allowed if the waiver or modification is
necessary to make the housing units economically feasible.

C. Any approval or denial of a request for a waiver or modification of development and zoning
standards or an additional incentive or concession shall be supported by written findings in
support of such approval or denial. Nothing in this chapter requires the city to waive or
reduce development standards if the waiver or reduction would have a specific, adverse
impact, as defined in Government Code Section 65589.5(d)(2), upon health, safety, or the
physical environment and for which there is no feasible method to satisfactorily mitigate or
avoid the specific adverse impact, or if the waiver or reduction would have an adverse
impact on any real property listed in the California Register of Historic Resources or be
contrary to state or federal law.

D. An applicant/developer may submit a preliminary proposal for the housing development
prior to the submittal of any formal requests for general plan amendments, zoning
amendments, or subdivision map approvals. Applicants are encouraged to schedule a pre-
application conference with the community development director or designated staff to
discuss and identify potential application issues, including prospective additional
incentives or concessions pursuant to Section 17.102.050. A preliminary application shall
include the following information:

1. A brief description of the proposed housing development, including the total number
of units, target units, and density bonus units proposed.

2. The zoning and general plan designations and assessor’s parcel number(s) of the
project site.

3. A vicinity map and preliminary site plan, drawn to scale, including building
footprints, driveway and parking layout.

4. If a waiver or modification of development and zoning standards is requested, the
application shall demonstrate how the existing development and zoning standards
inhibit the utilization of the density bonus on the specific site and that the waiver or
modification is necessary to make the housing units economically feasible.

5. If an additional incentive or concession is requested, the application should describe
why the additional incentive or concession is necessary to provide the target units in
accordance with this chapter.

E. The city shall, within ninety days of receipt of a written proposal, notify the applicant/
developer, in writing, of project issues of concern and the procedures for compliance with this chapter, including procedures for waiving or modifying development and zoning
standards that would otherwise inhibit the utilization of the density bonus on specific sites.
The procedures for the waiver or modification of development and zoning standards shall
include, but not be limited to, such items as minimum lot size, side yard setbacks, and
placement of public works improvements.

F. The community development director shall inform the applicant/developer whether the
requested waiver or modification of development and zoning standards and/or the
additional incentive or concession shall be recommended for consideration with the
proposed housing development, or whether alternative or modified development and
zoning standards and/or additional incentive or concession shall be recommended for
consideration in lieu of the requested waiver or modification of development and zoning
standards or additional incentive or concession.
(Ord. 1145 § 2 (part), 2011)

An applicant shall agree, and the city shall ensure, that the initial occupants of moderate income units that are directly related to the receipt of the density bonus in a condominium project are persons and families of moderate income, as defined in Health and Safety Code Section 50093, and that the units are offered at an affordable housing cost, as defined in Health and Safety Code Section 50052.5. The city shall enforce an equity sharing agreement in accordance with Government Code Section 65915. (Ord. 1145 § 2 (part), 2011)

A. Any waiver or modification of development and zoning standards and/or the granting of additional incentives or concessions is project specific. In any case where a housing development with approved waivers or modifications of development and zoning standards and/or additional incentives or concessions has not commenced construction within the time limit set by either the planning commission or the city council (whichever has final approval authority over the particular housing development) or within one year, if no specific time limit has been set, then without further action such waivers or modifications of development and zoning standards and/or additional incentives or concessions shall be null and void. Construction is deemed commenced, for purposes of this section, upon issuance of a building permit for an approved dwelling unit.

B. The planning commission or the city council (whichever has final approval authority over the particular housing development) may extend the deadline for commencement of construction for a period or periods not to exceed twelve months upon receipt of a written request which shall include the reason for the delay and the requested extension and any other information as reasonably deemed necessary by the community development director. (Ord. 1145 § 2 (part), 2011)

A. Any person dissatisfied with any final action of the planning commission on a request for a density bonus and an additional incentive or concession and/or waiver or modification of development and zoning standards may appeal therefrom to the city council, at any time within ten days after the rendition of the decision of the planning commission. The appeal is taken by filing a notice of appeal with the community development director. Upon filing of the notice of appeal, and payment of a filing fee, the community development director must, within ten days, transmit to the city clerk all exhibits and documents on file, together with the finding of the planning commission.

B. The city council shall hold a hearing upon said appeal after giving written notice to the applicant, property owners within three hundred feet of the subject property as shown on the last equalized assessment roll and any other persons who have filed a written request for notice. Such notices shall be mailed at least ten days prior to said hearing. (Ord. 1145 § 2 (part), 2011)

No official action such as the issuance of a building permit, license or other type of permit shall be taken while an appeal or proceeding for a density bonus and an additional incentive(s) or concession(s) and/or waiver or modification of development and zoning standards is pending. (Ord. 1145 § 2 (part), 2011)