Folsom Municipal Code Ch. 17.102 Density Bonus

(Note: Chapter 17.102, Density Bonus and Other Developer Incentives, derived from Ord. 1145, was repealed and replaced by Ord. 1374, 9/22/2026.)

This density bonus chapter establishes the city's density bonus program, which provides density bonuses, incentives, concessions, and waivers or reduction of development standards for the production of housing and implements California Government Code Section 65915, et seq., as amended from time to time. The program is intended to support the development of housing for very low-, low-, and moderate-income households, as well as senior housing, student housing, housing for persons with disabilities, and other qualified housing types as provided by state law.

In enacting this chapter, it is the intent of the City of Folsom to affirm its commitment to implementing the goals, objectives, and policies of the housing element of the general plan, and to encouraging the development of a diverse range of housing opportunities within the community. This chapter shall be interpreted and applied liberally to effectuate the purposes of State Density Bonus Law. Nothing in this chapter shall be construed to impose requirements or limitations on density bonus projects beyond those authorized by Government Code Section 65915 et seq. If any provision of this chapter conflicts with State Density Bonus Law, State law shall control.

(Ord. 1374, 9/22/2026)

The terms used in this chapter, including those defined below, have the meanings provided in this title and in Government Code Section 65915 et seq. In the event of a conflict between definitions, state law shall control.

A.

"Affordable unit"

means a housing unit affordable to a lower income household.

B.

"Affordable housing agreement"

means a recorded agreement between the applicant or property owner and the city that outlines the affordable housing obligations for a project approved under this chapter or Government Code Section 65915.

C.

"Applicant"

means the property owner or any person, or entity authorized in writing by the property owner to apply for a density bonus, incentive, concession, waiver, or related approval under this chapter.

D.

"Concession" or "incentive"

means any of the following:

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, including, but not limited to, a reduction in setback and square footage requirements and in the ratio of vehicular parking spaces that would otherwise be required that results in identifiable and actual cost reductions, to provide for affordable housing costs or for rents for the targeted units to be set.

Approval of mixed-use zoning in conjunction with the housing project 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 proposed housing project will be located.

Other regulatory incentives or concessions proposed by the developer or the city that result in identifiable and actual cost reductions to provide for affordable housing costs or for rents for the targeted units to be set.

E.

"Housing development"

means any residential or mixed-use project that includes dwelling units and is eligible for a density bonus under State Density Bonus Law.

F.

"Lower income household"

means a household whose income does not exceed 80% of the area median income (AMI) for the county or metropolitan area, adjusted for household size, as determined annually by the California Department of Housing and Community Development (HCD) pursuant to state law. Lower income households include very low income, extremely low income, and acutely low-income households unless otherwise specified.

G.

"Maximum allowable residential density"

means the greatest number of units allowed under the zoning ordinance, specific plan, or land use element of the general plan, or, if a range of density is permitted, means the greatest number of units allowed by the specific zoning range, specific plan, or land use element of the general plan applicable to the project. Density shall be determined by using dwelling units per acre. However, if the applicable zoning ordinance, specific plan, or land use element of the general plan does not provide a dwelling-units-per-acre standard for density, then the local agency shall calculate the number of units by:

Estimating the realistic development capacity of the site based on the objective development standards applicable to the project, including, but not limited to, floor area ratio, site coverage, maximum building height and number of stories, building setbacks and stepbacks, public and private open-space requirements, minimum percentage or square footage of any nonresidential component, and parking requirements, unless not required for the base project. Parking requirements shall include considerations regarding number of spaces, location, design, type, and circulation. A developer may provide a base density study, and the local agency shall accept it, provided that it includes all applicable objective development standards.

Maintaining the same average unit size and other project details relevant to the base density study, excepting those that may be modified by waiver or concession to accommodate the bonus units, in the proposed project as in the study.

H.

"Targeted unit"

means dwelling units within a housing development which will be reserved for sale or rent to lower income households, or senior residents.

I.

"Waiver" or "reduction of development standards"

means a local development standard that will either be reduced or not enforced because the development standard would physically prevent the project from being built at the permitted density and with the granted concessions or incentives.

(Ord. 1374, 9/22/2026)

A. Density Bonus Eligibility. A housing development is eligible for a density bonus, incentives or concessions, waivers or reductions of development standards, and parking ratio reductions in accordance with Government Code Section 65915. To request a density bonus, the applicant shall identify the applicable eligibility category under Government Code Section 65915, including but not limited to affordable housing, senior housing, student housing, land donation, child-care facilities, or commercial development bonuses. The applicant shall also identify the percentage, number, and income level of the restricted units proposed to qualify the project under state law. The city may require reasonable documentation to establish eligibility for a requested density bonus.

If the housing development is proposed on any property that includes a parcel or parcels on which rental dwelling units are located or, if the dwelling units have been vacated or demolished in the five-year period preceding the application, and meets the requirements listed in Government Code Section 65915(c)(3)(A), the applicant shall be ineligible for a density bonus or any other incentives or concessions unless the proposed housing development replaces those units, and either Government Code Section 65915(c)(3)(A)(i) or (ii) apply.

If a housing development meets the eligibility criteria under Government Code Section 65915, the city shall grant the density bonus and any related incentives, concessions, waivers, or parking reductions required by State law.

B. Density Bonus Calculation. The maximum density bonus a housing development project may receive shall be calculated in accordance with Government Code Section 65915, including the density bonus provisions for affordable housing, land donation, child-care facilities, and commercial development. Maximum allowable residential density shall be calculated in accordance with the maximum allowable density under the applicable zoning, specific plan, or general plan designation, consistent with Government Code Section 65915(f). The following provisions apply to the calculation of density and affordable unit requirements:

1. Rounding of Units. Any fractional unit resulting from the calculation of maximum allowable residential density or bonus density shall be rounded up to the next whole number. Any fractional affordable unit required to qualify for a density bonus shall also be rounded up to the next whole number.

2. Units Counted Toward Qualification. Units added through a density bonus shall not be included when determining the number of affordable units required to qualify for the bonus. Affordable units provided on site to satisfy the city's inclusionary housing requirements pursuant to Folsom Municipal Code Chapter 17.104 may also be used to qualify for a density bonus if they meet the affordability requirements of Government Code Section 65915. Payment of in-lieu fees in place of constructing affordable units shall not be used to qualify a project for a density bonus.

3. Election of Bonus Amount. An applicant may elect to accept a density bonus that is less than the maximum permitted, or to forgo a density bonus entirely, provided that the minimum affordable housing requirements of Government Code Section 65915 are met.

C. Incentives or Concessions. A qualifying housing development is entitled to receive the number of incentives or concessions specified in Government Code Section 65915(d), regardless of whether it elects to use the density bonus.

1. Types of Incentives or Concessions. In accordance with, and further defined in Government Code Section 65915(k), incentives or concessions include:

a. A reduction in site development standards or a modification of zoning code requirements or architectural design requirements that exceed the minimum building standards as specified in Government Code Section 65915(k) that would otherwise be required that results in identifiable and actual cost reductions to provide for affordable housing costs, as defined in Health and Safety Code Section 50052.5, or for affordable rents for the targeted units to be set as specified in Government Code Section 65915(c).

b. Approval of mixed-use zoning in conjunction with the 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 development and the existing or planned development in the area where the proposed housing development will be located as determined by the city in its reasonable discretion.

c. Other regulatory incentives or concessions proposed by the applicant or the city that result in identifiable and actual cost reductions to provide for affordable housing costs, as defined in Health and Safety Code Section 50052.5, or for affordable rents for the targeted units to be set as specified in Government Code Section 65915(c).

2. 100% Affordable Projects. For a housing development in which 100% of the units, exclusive of a manager's unit, are affordable to lower-income households, the city may grant a reduction in the minimum base density as a concession or incentive, provided that the applicant demonstrates that the reduction would result in an identifiable and actual cost savings to the project or that, absent such reduction, the project would be physically precluded from being constructed.

3. Approval Standard. The city shall grant a requested concession or incentive unless it makes a written finding, based on substantial evidence, of any of the reasons listed under Government Code Section 65915(d)(1)(A) through (C).

D. Waivers or Reductions of Development Standards. In accordance with Government Code Section 65915(e), the applicant for a housing development that qualifies for a density bonus may request waivers or reductions of development standard that would physically preclude construction of the housing development project at the permitted density or with the concessions or incentives. For purposes of this section, development standards include, but are not limited to, height limits, setback requirements, lot coverage, and floor area ratio (FAR).

1. The applicant may submit a proposal for waivers or reductions of any development standard that would physically preclude the construction of the housing development at the density or with the incentives or concessions permitted by Government Code Section 65915. The city shall not require the applicant to reduce the project's density or incentives as a condition of requesting or receiving a waiver.

2. The city shall grant a requested waiver or reduction of a development standard unless it makes a written finding, permitted under Government Code Section 65915(e).

3. A request for a waiver or reduction of development standards is separate from incentives or concessions and does not count toward the number of incentives.

4. There is no limit on the number of waivers or reductions in development standards an applicant may request or receive, provided the applicant demonstrates that each requested waiver is necessary to physically accommodate the project at the permitted density or with the permitted incentives or concessions.

5. The city may engage in a voluntary, collaborative design dialogue with the applicant regarding requested waivers or reductions, including offering advisory recommendations to address community concerns or to explore ways the project might better align with overarching principles of the general plan, zoning ordinance, or design and development standards. All such recommendations shall be advisory only and shall not be a condition of approval unless voluntarily agreed to by the applicant. The city shall not require the applicant to modify the project, alter or withdraw any requested waiver or reduction in development standards, or otherwise delay, impede, or reduce the applicant's entitlement to waivers or reductions in development standards required under Government Code Section 65915(e).

E. Parking Ratios. In accordance with Government Code Section 65915(p), the parking requirements for a housing development that qualifies for a density bonus shall not exceed the maximum parking ratios established by state law. These parking ratios apply notwithstanding any other provision of this Code. Parking reductions do not limit or reduce the applicant's entitlement to incentives, concessions, or waivers. The city shall not require the applicant to provide a report or study that is not otherwise required by state law, but it may require reasonable documentation to establish eligibility for the parking ratios established by state law.

F. Effect of Granting Density Bonus, Incentive, Concession, or other Modifications. In accordance with Government Code Section 65915(j), the granting of a density bonus, incentives, concessions or waivers, reductions of development standards, and/or parking reductions shall not, in and of itself, require to be interpreted, to require a general plan amendment, specific plan amendment, zoning change, study or other discretionary approval.

(Ord. 1374, 9/22/2026)

A. Affordable units shall be constructed concurrently with market-rate units unless both the city and the applicant agree, in writing, to an alternative schedule for development.

B. Affordable units shall be integrated into the housing development to the greatest extent feasible. Where feasible, the bedroom count and bedroom mix of the affordable units shall be generally consistent with the bedroom mix of the non-affordable units, except that the applicant may provide a higher proportion of affordable units with more bedrooms. The design, materials, and exterior appearance of the affordable units shall be compatible with, and comparable to, the overall design of the housing development.

(Ord. 1374, 9/22/2026)

A. Requirement for Affordable Housing Agreement. If a density bonus, incentive or concession, parking reduction, or waiver or reduction of development standards is approved pursuant to this chapter, the applicant shall enter into a binding affordable housing agreement or restrictive covenant with the city. The form and content of the affordable housing agreement shall be approved by the Community Development Director and the City Attorney.

B. Compliance and Enforcement. The affordable housing agreement shall establish compliance standards and identify the remedies available to the city in the event the applicant fails to comply with State Density Bonus Law, this chapter, or the affordable housing agreement.

C. Recordation and Timing. The executed affordable housing agreement shall be recorded against the housing development prior to final or parcel map, or, if no map is required, prior to issuance of any building permit for the housing development.

D. Binding Effect. The affordable housing agreement shall run with the land and shall be binding on all future owners, successors, and assigns for the duration of the required affordability period.

(Ord. 1374, 9/22/2026)

A. Application Timing and Processing. An application for a density bonus, incentive or concession, waiver or reduction of a development standard, or revised parking standard pursuant to this chapter shall be submitted with the first application for approval of the housing development. The request shall be processed concurrently with all other required applications in accordance with applicable State law, including but not limited to the Permit Streamlining Act.

B. Application Contents. The application shall be submitted on a form prescribed by the city and shall include, at minimum, the following information:

1. Site Plan. A site plan showing:

a. Total number of units;

b. Number and location of affordable units;

c. Number and location of proposed density bonus units.

2. Affordability Information. The target income levels of the affordable units and the proposed method(s) for ensuring affordability.

3. Requested Incentives, Concessions, Waivers, or Parking Reductions. A description of all requested incentives or concessions, waivers or reductions of development standards, or modified parking standards.

a. Incentives or Concessions. For any requested incentive or concession, the application shall include sufficient information for the city to evaluate the request in accordance with Government Code Section 65915.

b. Waiver or Reduction of Development Standards. For any requested waiver or reduction of a development standard, the applicant shall provide sufficient information for the city to determine that the development standard would physically preclude construction of the residential project at the permitted density and with the requested incentives or concessions. The city shall not require additional reports or studies that are not otherwise required by state law.

c. Parking Reductions. A summary table showing parking required by the zoning regulations, parking proposed under state density bonus law, and sufficient information for the city to determine that the housing development is eligible for the requested parking reductions. The city shall not require parking studies or additional documentation beyond what is necessary to verify eligibility under Government Code Section 65915(p).

4. Requests Based on Any Qualifying Category Under State Law. For any request made pursuant to a qualifying category under Government Code Section 65915, the application shall include sufficient information to demonstrate that the project satisfies all applicable statutory requirements and findings for that category.

C. Application Review.

1. Completeness Review. Upon submittal, the city shall review the application for completeness in accordance with Government Code Section 65943. If the application is determined to be incomplete, the city shall provide written notice identifying the additional information required in accordance with Government Code Section 65943.

2. Eligibility Review. The city shall review the application to verify that the housing development qualifies for a density bonus and any requested incentives, concessions, waivers, reductions of development standards, or parking reductions pursuant to Government Code Section 65915.

3. Required Findings. The review authority shall approve a density bonus and any requested incentives, concessions, waivers, reductions of development standards, or parking reductions unless it makes written findings as specified under Government Code Section 65915, including, as applicable:

a. The incentive or concession does not result in identifiable and actual cost reductions to provide for affordable housing costs or for rents;

b. The incentive or concession would have a specific adverse impact, as defined in the Government Code, on public health or safety, or on a property listed in the California Register of Historical Resources, and there is no feasible method to satisfactorily mitigate or avoid the adverse impact without rendering the development unaffordable to low-income and moderate-income households;

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

d. The waiver or reduction of a development standard is not necessary to physically accommodate the housing development at the permitted density and with the requested incentives or concessions.

4. Conditions of Approval. Any approval of a density bonus, incentive or concession, waiver or reduction of a development standard, or revised parking standard may include conditions necessary to ensure compliance with Government Code Section 65915 and this chapter.

In accordance with Government Code Section 65915(j), the granting of a density bonus, incentives, concessions or waivers, and/or reductions of development standards shall not, in and of itself, require a general plan amendment, specific plan amendment, zoning change, study, or other discretionary approval.

(Ord. 1374, 9/22/2026)