Fowler Municipal Code Art. 23 Density Bonus

The purpose of the Density Bonus Ordinance is to contribute to the feasibility of developing lower income housing within the City of Fowler. In accordance with Government Code Section 65915 et seq., the City shall grant to developers who meet all requirements of this chapter, either (1) a density bonus and an additional concession or incentive, unless determined unnecessary for affordability, or (2) provide an incentive or equivalent financial value. The increase in density must be at least twenty-five (25) percent, if requested, over the maximum authorized density.

This ordinance establishes procedures and criteria for use in the consideration of density bonuses for residential rental and ownership housing developments consistent with State Density Bonus Law requirements.

A. As used in this article, the following terms shall mean:

Affordable housing means housing costs as defined in Section 50052.5 of the Health and Safety Code, or rents at qualifying levels for lower income or very low income households.

Concession or incentive means any of the following:

a. A modification of development standards pertaining to building height, open space, lot size requirements, street access, off-street parking, landscaping, fencing, a reduction in setback and square footage requirements, or off-site improvements. Such reduction or modification requirements must exceed the minimum building standards approved in the Health and Safety Code.

b. 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 such nonresidential uses are compatible with the housing project and the existing or planned development in the area.

c. An additional ten (10) percent density bonus.

d. Other regulatory incentives or concessions proposed by the developer or the City that result in identifiable cost reductions.

e. Direct financial incentives that include in order of City priority:

i. Financial contributions or mortgage financing from the Redevelopment Agency's twenty (20) percent set-aside for low and moderate income housing (as available).

ii. Modification of dedication requirements.

iii. Waiver or reduction of fees (excluding connection charges).

iv. Provision of publicly owned land.

Density Bonus means an increase in the number of dwelling units of at least twenty-five (25) percent over the otherwise maximum allowable density pursuant to the more restrictive of either the zoning ordinance or the land use element of the Fowler General Plan. The density bonus shall apply to housing developments of five (5) or more units. The density bonus shall not be included when determining the number of target units to be included within the development.

Equivalent Financial Value refers to the cost to the developer based on the land cost per dwelling unit. This is determined by the difference in the value of the land with and without the density bonus.

Housing Development means one (1) or more groups of projects for residential units constructed according to adopted planning and zoning procedures of the City.

Lower and Very Low Income Households are defined by income limits published by the State Department of Housing and Community Development. This applies to both housing for rent and for sale.

Senior Citizen means a qualifying resident according to the provisions of Section 51.2 of the California Civil Code and is either: (a) a person sixty-two (62) years of age or older, or (b) a person fifty-five (55) years of age or older living in a senior citizen housing development as defined in Section 51.3 of the California Civil Code.

Target Units, or Households means those units that are the subject of the density bonus or incentive provisions as follows:

a. Twenty (20) percent of the units for lower income households, as defined in Section 50079.5 of the Health and Safety Code; or

b. Ten (10) percent of the units for very low income households, as defined in Section 50105 of the Health and Safety Code; or

c. Fifty (50) percent of the units for senior citizens, as defined in Section 51.2 of the Civil Code.

A. When a housing developer agrees to construct at least, (a) twenty (20) percent of the total units of a housing development for lower income households, or, (b) ten (10) percent of the total units of a housing development for very low income households, or, (c) fifty (50) percent of the total units of a housing development for qualifying seniors, the Council shall either:

1. Grant a density bonus and at least one (1) concession or incentive, unless the Council makes a written finding that the additional concession or incentive is not required in order to provide for affordable housing costs.

2. Provide other incentives of equivalent financial value based upon the land cost per dwelling unit.

B. The developer shall show that any requested waiver or modification of development or zoning standards is necessary to make the housing units economically feasible.

C. In all cases where the City denies an additional incentive, it must make written findings that the additional incentive is unnecessary for affordability of the target units.

D. The density bonus may be allowed as a density transfer within a group of contiguous housing developments under the same ownership. The density bonus units may be permitted in geographic areas of the housing development other than the areas where the target units are to be located.

E. If a developer agrees to construct both twenty (20) percent of the total units for lower-income households and ten (10) percent of the total units for very low income households, the developer is entitled to only one (1) density bonus and at least one (1) additional concession or incentive although the Council may, at its discretion, grant more than one (1) density bonus.

F. Units targeted for lower income households shall be affordable at an annual rent that does not exceed thirty (30) percent of eighty (80) percent of area median income. Units targeted for very low income households shall be affordable at an annual rent that does not exceed thirty (30) percent of fifty (50) percent of area median income.

G. No minimum affordable prices are established for for-sale target units. However, lower or very low income households must be able to afford the target units, taking into consideration any mortgage subsidy programs.

H. For both rental and for-sale units, the City shall use the income limits published by the State Department of Housing and Community Development in administering the State Density Bonus Law.

I. To facilitate waiving or modifying development and zoning standards to be granted as an additional incentive, density bonus projects shall be developed as a Planned Unit Development or Precise Plan.

J. The developer shall agree to and the Council shall ensure continued affordability of all target units for thirty (30) years (or longer if required by construction or mortgage financing, the mortgage insurance program, or the rental subsidy program). If the City makes written findings that additional concessions or incentives are not necessary, but provides only the density bonus, the developer shall agree to and the City of Fowler shall ensure continued affordability for ten (10) years of all target units. If senior housing subject to the density bonus is to be without income limits, then no affordability agreement is necessary.

K. Any decision of the Council approving a density bonus, incentive or concession shall provide for the execution and recording of a development agreement that ensures the continued affordability of the density bonus units for such periods as may be required by State Law or the Council. Such development agreement shall run with the land and pass to and be binding upon the developer's successors; provided that on termination of the required time periods, the development agreement shall also expire. The development agreement shall set forth the conditions and guidelines to be met in the implementation of the Density Bonus Law requirements. The agreement will also establish specific compliance standards and remedies available to the City upon failure by the developer to make units accessible to the intended target households.

L. Rejection of any proposed housing development project complying with density bonus provisions as well as with the General Plan, zoning and development policies in effect at the time the application is found complete, must be based on both the following written findings, supported by substantial evidence on record:

1. The project would have a specific, adverse impact upon public health safety, and

2. There is no feasible method to satisfactorily mitigate or avoid the adverse impact identified.

A. A developer may submit a preliminary proposal for the development of housing pursuant to this article prior to the submittal of any formal entitlement requests. The City shall, within ninety (90) days of receipt of a written proposal, notify the developer in writing of the procedures under which it will comply with this article.

B. The Director shall provide application forms for developers seeking a density bonus, concession or other incentive under this article. The forms shall require the applicant to provide at least the following information:

1. Whether the applicant requests a density bonus, development incentive or concession, or both.

2. Which target household group the housing development or project qualifies for (i.e. lower income, very low income, or senior citizen households).

3. How the applicant proposes to enforce rental restrictions or sale-price restrictions, and whether said restrictions are proposed to extend for ten (10) years, thirty (30) years or some other term.

4. Financial information regarding the land acquisition and construction costs of the project that demonstrate that the density bonus, development incentive or concession requested by the applicant is necessary to make the housing units economically feasible.

5. How the applicant proposes to locate, screen and qualify tenants or buyers to ensure income qualifications are satisfied for all target or density bonus units.

6. A detailed description of the target units showing the square footage, room sizes, lot coverage, household amenities, and initial rent structure or pricing schedule for each target unit to be constructed in the project.

C. The completed application shall be filed with the Director at the same time as the entitlement request for the project. An application for project approval under any other provision of this chapter shall be considered incomplete until a duly completed density bonus application described in this section is filed with the Director, along with the applicable application fee.

D. Except as otherwise provided in this section, the completed application shall be processed pursuant to the procedures for processing a Conditional Use Permit, including application fees.

E. The Director shall notify the applicant within the ten (10) days of the filing of the application whether the application is complete and accepted.

F. The City may rely on a third party to independently analyze the financial feasibility of the project in order to determine the necessity of providing additional incentives. The City may charge the applicant direct costs for such third party analysis.

G. The Commission shall hold a public hearing on the application. Such hearing shall be held in conjunction with consideration of any related entitlement request filed by the applicant. Notwithstanding any other provision of this chapter, the Commission shall not have final approval authority for any project submitted for its review if the applicant has also filed a density bonus application under this section.

H. The Council shall hold a public hearing on the application to consider the Commission recommendation. Such hearing shall be held in conjunction with consideration of any related entitlement request filed by the applicant. The decision of the Council shall be final.

A. The Developer/Property Owner shall set aside each month, on completion of the project, the number of units designated for target households. A unit will be counted toward meeting the set-aside requirement if it is either vacant or occupied by a lower or very low income tenant or a senior citizen.

B. The target units must be compatible in floor plan, furnishings, and exterior design to non-designated units. Further, the target units must be reasonably dispersed throughout the development.

C. The Developer/Property Owner must provide the City a yearly accounting of: total units occupied and vacant, total units occupied by lower or very low income households or senior citizens, and the total by which the units set aside fell short of the required number of units (default units). In the event of default, the City shall have access to and inspect all of the records of the developer pertaining to the development. The City shall take whatever action at law or in equity necessary or desirable to enforce the obligations, covenants and agreements of the developer.

If any section, subsection, or clause of this article is declared unlawful, the remaining provisions shall remain in full force and effect.