Loyalton Municipal Code Ch. 12.08.27 Density Bonus Ordinance

REGULATIONS 27-1. Purpose The purpose of this Part is to implement State law requirements under California Government Code §§ 65915 through 65918, as they may be amended from time to time, or the current equivalent to encourage the development of residential development that offers a percentage of its units to be made available to families of low or moderate income.
27-2. Bonus Requirements for Residential Projects Pursuant to California Government Code §§ 65915 and 65917, the City must grant to an applicant of a qualifying housing development who seeks a density bonus (“Developer”) either (1) a density bonus or (2) a density bonus with an additional incentive(s) as set forth in this Part. A density bonus housing agreement shall be made a condition of any density bonus approved pursuant to this Part, and may be prepared as part of the Development Agreement (“DA”) process. The agreement shall be recorded as a covenant on the property on which the designated affordable dwelling units will be constructed, which covenant shall run with the land.
27-3. Eligibility for Density Bonus, Incentives or Concessions The following are eligibility requirements for a density bonus, incentives or concessions applicable to this Part: A. Affordability. A Developer entering into an agreement pursuant to California Government Code § 65915 to construct a housing development may quality for a density bonus, if the proposed housing development of 5 or more residential units includes; 1. A minimum of five percent of the total units made available to very low-

income households, as defined by the most recent version of the applicable

section of the California Health and Safety Code; or
2. A minimum of ten percent of the total units are made available to low-

income households, as defined by the most recent version of the applicable

sections of the California Health and Safety Code; or
3. A minimum of ten percent of the total units in a common interest

development, made available to moderate-income households, as defined

by the most recent version of the California Health and Safety Code,

provided that all units in the development are offered to the public for

purchase; or

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A senior housing development or senior restricted mobile home parks, as

defined by the most recent version of the applicable in Section 65915 of the

California Government Code;
5. A minimum of ten percent of the total units are reserved for transitional

foster youth, disabled veterans, or homeless persons, consistent with the

definitions in Education Code Section 66025.9, Military and Veterans Code

Section 18541, and the federal McKinney-Vento Homeless Assistance Act.

These units must be subject to a 55-year recorded affordability restriction

and provided at the same affordability level as very low-income units; 6. A minimum of twenty percent of the total units are reserved for lower-

income students in a qualifying student housing development; or 7.
Any additional qualifying project allowable under California Government

Code Section 65915 as amended from time to time.
California Government Code Section 65915.5 shall govern the availability of bonus incentives for projects which convert apartments to condominium projects which include at least thirty-three percent of the total units of the proposed condominium project to persons and families of low- or moderate income as defined in California Health and Safety Code Section 50093, or fifteen percent of the total units to low- income households as defined in California Health and Safety Code Section 50079.5.
B. Allowed density bonus. For the purposes of calculating the density bonus below, the Developer shall select which qualifying density listed in Part A above under which the Developer wishes the bonus to be awarded. Qualifying developments are eligible for a density bonus and one or more additional incentives or concessions as follows: 1. Lower income households. A housing development eligible for a bonus in compliance with criteria of Part A.1 above (10% of lower income households) shall be entitled to a density bonus calculated pursuant to California Government Code § 65915(f)(1). 2. Very low-income households. A housing development eligible for a bonus in compliance with criteria of Part A.2 above (5% of very low-income households) shall be entitled to a density bonus calculated pursuant to California Government Code § 65915(f)(2). 3. Common interest development. A housing development eligible in compliance with criteria of Part A.3 above (10% for moderate income

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households) shall be entitled to a density bonus calculated pursuant to California Government Code § 65915(f)(4). 4. Senior citizen development. A housing development eligible for a bonus in compliance with criteria of Part A.4 above (senior citizen development or mobile home park) shall be entitled to a density bonus calculated pursuant to California Government Code § 65915(f)(3). 5. Density bonus for land donation. When an applicant for a tentative subdivision map, parcel map, or other residential development approval donates land to the City, the maximum allowable residential development under the applicable zoning ordinance and general plan, as permitted by California Government Code § 65915(g)(1). This increase shall be in addition to any other density bonus. The applicant shall meet the conditions in California Government Code § 65915(h) in order to qualify for the additional development.
6. Density bonus for housing with child care facilities. The City shall grant a housing development that includes a child care facility in compliance with California Government Code § 65915(h). 7. Transitional foster youth, disabled veterans, or homeless persons. A housing development eligible for a bonus in compliance with Subsection (Aa)(5) (a minimum of ten percent of the total units reserved for transitional foster youth, disabled veterans, or homeless persons, consistent with Education Code Section 66025.9, Military and Veterans Code Section 18541, and the federal McKinney-Vento Homeless Assistance Act) shall be entitled to the density bonus assigned to this category, and such units shall be subject to a 55-year affordability restriction at the very low-income level. 8. Student housing development. A housing development eligible for a bonus in compliance with Subsection (Aa)(6) (a minimum of twenty percent of the total units reserved for lower-income students in a qualifying student housing development) shall be entitled to the density bonus applicable to student housing developments pursuant to Government Code Section 65915. 9. One-hundred-percent affordable housing developments. A housing development in which all units, except manager’s units, are restricted to lower-income households, with up to twenty percent of the total units permitted for moderate-income households, is eligible for the density bonus provisions applicable to one hundred percent affordable projects pursuant to Government Code Section 65915, including circumstances where maximum density controls do not apply. 10. Any additional qualifying project allowable under California Government

Code § 65915 as amended from time to time.

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Additional Density Bonus: In addition to a Density Bonus set forth in Part B (Allowed Density Bonuses), the City will allow projects to potentially obtain a total density bonus of up to one hundred percent by providing the initial percentage of affordable units to secure an initial fifty percent density bonus and then a secondary percentage of affordable units in order to obtain an additional density bonus of up to fifty percent. Where a housing development is seeking an additional bonus, the application shall identify the subparagraph of Government Code Section 65915(v)(1) under which the development qualifies and provide reasonable documentation demonstrating eligibility for the additional bonus under that subparagraph. The additional density bonus will be available to projects that meet the following minimum set-asides:

a. Rental or for-sale housing developments that provide fifteen percent of the total units to Very Low-Income households.

b. Rental or for-sale housing developments that provide twenty-four percent of the total units to Lower Income households.

c. For sale housing developments that provide forty-four percent of the total units to Moderate Income households.

d. Calculation of Additional Density Bonus: Rental or for-sale housing development that meets the requirements specified in subsection A, an additional density bonus shall be entitled to a density bonus calculated in accordance with Government Code Section 65915(v)(2). B. Development standards. Projects qualifying under this Part shall comply with the following development standards: 1. Designated affordable units shall be reasonably dispersed throughout the project where feasible, shall contain on average the same number of bedrooms as the non-designated units in the project, and shall be compatible with the design or use of the remaining units in terms of appearance, materials, and finished quality. 2. If the project is phased, the density bonus units shall be phased in in the same proportion as the non-density bonus units, or phased in another sequence acceptable to the City.

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27-4. Inclusionary Housing
At the time of adoption of this Density Bonus ordinance, the City does not have an inclusionary housing policy in place. However, if an inclusionary housing policy is adopted, designated affordable units shall count towards the requirements of the City’s inclusionary housing requirements.
27-5. Allowed Incentives or Concessions
The following are allowed incentives or concessions that can be made for projects qualifying under this Part: A. Applicant request and City approval. An applicant for a density bonus may submit to the City a proposal for the specific incentives or concessions listed that the applicant requests, and may request a meeting with the City staff prior to submitting the development application. The City Council shall grant an incentive or concession request that complies with the requirements of this Part and state law, unless the City Council makes in writing, based on substantial evidence, the findings established in California Government Code §§ 65915(d)(1)(A), 65195(d)(1)(B) or 65915(d)(1)(C). B. Number of incentives. The applicant shall receive other concessions or incentives, as listed in Part C below, that result in identifiable and actual cost reductions for the construction of the qualifying development project. The number of concessions or incentives will be determined by California Government Code § 65915(d)(2). C. Types of incentives. For the purposes of this Part, bonus concessions or incentives which the City may provide include, but are not limited to, any of the following, as established in California Government Code § 65915(k). 1. A reduction in site development standards or a modification of zoning code requirements of architectural design requirements that exceed the minimum, including, but not limited to, reductions in setback requirements, square footage requirements, or vehicular parking ratios, that result in identifiable and actual cost reductions pursuant to California Government Code § 65915(k); 2. 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 pursuant to California Government Code Section 65915(k)(2); and 3. Any other incentive or concession proposed by the Developer or the City that results in an identifiable and actual cost reductions to provide for

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affordable housing cost pursuant to California Government Code Section 65915(k)(3). 4. Any additional qualifying density bonus, incentive or concession allowable under California Government Code § 65915, as amended from time to time. 27-6. Processing of Bonus Requests The following is required for processing a bonus request: A. Permit requirement. An application for a density bonus or other incentive under this section for a housing development shall be submitted in writing to the Planning Department to be processed concurrently with all other entitlements of the proposed housing development. The application for a housing development shall contain information sufficient to fully evaluate the request under the requirements of this chapter and applicable State law. Approval of incentives or concessions. Finding for Approval. The Planning Commission or the Board of Supervisors shall grant an incentive requested by the applicant unless it makes a written finding, based upon substantial evidence, of any of the following:

The proposed incentive does not 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, as defined in Health

and Safety Code Section 50053; or

The proposed incentive would be contrary to state or federal law; or

The proposed incentive would have a specific, adverse impact upon the

public health or safety or on any real property that is listed in the California

satisfactorily mitigate or avoid the specific adverse impact without

rendering the housing development unaffordable to low- and moderate-

income households. For the purpose of this subsection, “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 that the application for the

housing development was deemed complete as defined in Government

Code Section 65589.5. B. Approval waivers. The City Council shall grant the waiver of development

standards requested by the applicant unless it makes a written finding, based upon

substantial evidence, of any of the following:

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The proposed waiver would be contrary to state or federal law; or

The proposed waiver would have an adverse impact on any real property

listed in the California Register of Historic Resources; or 3. The proposed waiver would have a specific, adverse impact upon the public

health or safety, and there is no feasible method to satisfactorily mitigate or

avoid the specific adverse impact without rendering the housing

development unaffordable to low- and moderate-income households. For

the purpose of this subsection, “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 that the application for the housing development

was deemed complete as defined in Government Code Section 65589.5.

D. Continued Affordability. The application shall be considered by the City Council

concurrently with the project for which the request is being made is considered. If

the project is not to be otherwise considered by the City Council, the request being

made under this section shall be considered by the planning director. The request

shall be approved if the applicant complies with Government Code Section 65915

et seq. 27-7. Density Bonus Agreement
The following is required for a density bonus agreement: A. Agreement required and provisions. An applicant requesting a density bonus agreement shall agree to enter into a recordable density bonus agreement (“agreement”) with the City in a form approved by the City Attorney. The executed agreement shall be recorded on the property designated for the construction of the designated affordable units. The approval and recordation shall take place prior to final map approval, or where a map is not being process, prior to issuance of building permits for such properties. B. Project information. The agreement shall include at least the following information about the project: 1. The total number of units approved for the housing development, including the number of designated affordable units and any student housing units and/or senior housing units, if provided.

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A description of the household income group to be accommodated by the housing development, and the standards for determining the corresponding Affordable Rent or Affordable Housing Cost. 3. The location, unit sizes (square feet), and number of bedrooms of the designated affordable dwelling units, student housing units, and/or senior housing units. 4. The required affordability term shall be consistent with Government Code Section 65915(c). 5. A schedule for completion and occupancy of the designated affordable dwelling units. 6. A description of the additional incentives being provided by the City. 7. A description of the remedies for breach of the agreement by the owners. 8. Other provisions to ensure successful implementation and compliance with California Government Code § 65915.

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27-8. Minimum Requirements of the Agreement The following is required for a density bonus agreement:

A. Agreement Required and Provisions. An applicant requesting a density

bonus agreement shall agree to enter into a recordable density bonus

agreement ("agreement") with the county in a form approved by the city

attorney. The approval and recordation of the agreement shall take place

prior to final map approval, or where a map is not being processed, prior to

issuance of building permits for such properties.

B. Project Information. The agreement shall include at least the following

information about the project:

The total number of units approved for the housing development,

including the number of designated low income or affordable units

and any student housing units and/or senior housing units, if

provided.

A description of the household income group to be accommodated

by the housing development, and standards for determining the

corresponding Affordable Rent or Affordable Housing Cost.the

standards and methodology for determining the corresponding

affordable rent or affordable sales price and housing costs consistent

with U.S. Department of Housing and Urban Development ("HUD")

Guidelines..

The location, unit sizes (square feet), and number of bedrooms of

the designated affordable dwelling units, student housing units,

and/or senior housing units.

The required affordability term shall be consistent with Government

Code Section 65915(c).

A schedule for completion and occupancy of the designated

affordable dwelling units.

A description of the additional incentives being provided by the

city.

A description of the remedies for breach of the agreement by the

owners.

Other provisions to ensure successful implementation and

compliance with this section and Government Code Section 65915.

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C. For-Sale Housing Conditions. In the case of for-sale housing developments,

the agreement shall provide for the following conditions governing the

initial sale and use of designated low income or affordable dwelling units

during the applicable restriction period:

A requirement that designated affordable dwelling units shall be

owner-occupied by eligible households, or by qualified residents in

the case of senior housing.

Provisions of the city may require ensuring continued compliance

with maintaining low income or affordable dwelling units through

a recorded equity sharing agreement in compliance with this section

and state density bonus law.

Terms for future sales and recapture of any equity pursuant to a

recorded equity sharing agreement consistent with Government

Code Section 65915(c)(2).

The agreement shall be binding on all future owners, developer

and/or successors-in-interest.

D. Rental Housing Conditions. In the case of rental housing

development, the agreement shall provide for the following

conditions governing the use of designated low income or affordable

dwelling units during the restriction period:

The rules and procedures for qualifying tenants, establishing

affordable rent, filling vacancies, and maintaining the designated

affordable dwelling units for qualified tenants.
2. Provisions requiring owners to annually verify to the county tenant incomes and maintain books and records to demonstrate compliance with this section.

Provisions requiring owners to submit an annual report to the

city, which includes the occupancy status, affordability level,

bedroom size, and monthly rent for each designated affordable

dwelling unit.
4. A requirement that the designated affordable rental dwelling units

shall remain affordable to the qualified income group for minimum

of fifty-five (55) years, or longer if required by applicable

financing, consistent with state density bonus law. 5. The agreement shall be binding on all future owners, developer and/or successors-in-interest.

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