Malibu Municipal Code Ch. 7 Transfer of Development Credits

The purpose of this Chapter is to set forth procedures for implementing a program to mitigate the cumulative impacts of development given the large numbers of undeveloped parcels, the natural resource constraints and the limited availability of urban services in the Santa Monica Mountains Area coastal zone. Buildout of existing lots will have cumulative impacts on environmentally sensitive habitat, scenic and visual resources, natural landforms and potential future recreational use of the mountains and beaches. Development on new parcels will also cause an increase in risks to life and property due to high geologic, flood and fire hazards common to the region and would increase the amount of erosion due to grading for roads, utilities and building pads.

The intent of this Chapter is to ensure that density increased through new land divisions and new multi family unit development in the City, excluding affordable housing units, will not be approved unless Transfer of Development Credits are purchased to retire development rights on existing donor lots in the Santa Monica Mountains Area. A lot from which development rights have been transferred is "retired", and loses its building potential through recordation of a permanent open space easement.

A. The regulations requiring TDCs apply to:

1. Any action to authorize a coastal development permit for a parcel map, tract map, or certificate of compliance approved under LIP Section 15.3C or 15.3D in the City of Malibu; and;

2. Any action to authorize a coastal development permit for Multi Family Residential Development in the MF or MFBF zones or PD including land divisions associated with the multifamily residential development in the certified LCP except for units constructed for lower income households (defined in Health and Safety Code section 50079.5), very low income households (defined in Health and Safety Code section 50105), extremely low income households (defined in Health and Safety Code section 50106) or qualifying residents or senior citizens (defined in Civil Code section 51.3(b)(1)).

B. The responsibility for initiation of a transfer of a development credit is placed on the applicant for a coastal development permit for a residential land division or multi-family development.

C. TDC Credits may be obtained through purchase of development rights on donor sites throughout the Santa Monica Mountains Area coastal zone as defined herein from private property owners.

Definitions provided in this chapter are specifically adopted to implement the City of Malibu LCP TDC Program. In addition to the other definitions made elsewhere in the LCP Implementing Ordinances, the following terms are defined for the purposes of this chapter:

"Buildable Parcel"

is any parcel which, regardless of size, contains a site which can be accessed and upon which at least one single family residence can be constructed in conformity with all of the City's LCP policies and regulations and City health and safety codes in effect at time of application for a development or building permit.

"Credit Area"

is the area of one or more legal donor sites that is used to determine the number of development credits to be transferred.

"Development Rights"

means the rights that are commonly associated with real property ownership. Development rights, subject to local, state, and federal regulations, provide the legal basis for property development.

"Donor Area"

is a designated area from which density could be removed by extinguishing development potential of existing, constrained lots.

"Donor Lot"

is the same as Donor Site.

"Donor Site"

is a buildable parcel within the Santa Monica Mountains Area that has been designated as a parcel on which development rights may be purchased in order to generate transferable development credits (TDCs).

"Environmentally Sensitive Habitat Area"

means any area in which plant or animal life or their habitats are either rare or especially valuable because of their special nature or role in an ecosystem and which could be easily disturbed or degraded by human activities and developments.

"Receiver Area"

means residentially zoned lands within the City of Malibu coastal zone.

"Receiver Site"

is a residentially zoned parcel in the City where additional density can be accommodated through subdivision or new multifamily development consistent with policies of the LCP.

"Residential building site"

is a location within a buildable parcel upon which one single-family residence can be constructed consistent with all policies of the certified LCP.

"Santa Monica Mountains Area"

means the Santa Monica Mountains within the coastal zones of the City of Malibu and the County of Los Angeles.

"Significant Watershed"

means large, relatively undisturbed natural drainage basins that contain exceptional riparian and oak woodlands and provide habitat for various declining, restricted rare or endangered species.

"Transfer"

is the set of actions which result in an increase in density through authorization of subdivisions or multiunit development on one parcel by reducing the allowable development on another parcel-"donor lot"-by a like amount. In a typical transaction, a person wishing to subdivide a parcel will contract to purchase development rights from the owner of a qualifying donor lot to their mutual financial advantage. The transfer of development is officially validated at the time the applicant for a coastal development permit to subdivide or develop multifamily units is issued a coastal development permit and the donor lot(s) has been encumbered by documents permanently restricting its development potential. A parcel from which development credits have been transferred may be retained by the owner or transferred subject to any restrictions encumbering the parcel.

"Transferable Development Credit (TDC)"

is the right to transfer development on a residential site from a donor site to a receiver site where new lots or units are proposed to be created by subdivisions or multifamily unit development within the Malibu Santa Monica Mountains coastal zone of the City of Malibu and Los Angeles County.

The Malibu Transfer of Development Credit program is intended to carry out the following objectives:

A. Implement regulations that establish a voluntary program to transfer development rights for owners of property proposed for subdivision or multi-family developments and for owners of small lots in small lot subdivisions or lots with significant resource constraints.

B. Implement regulations that will mitigate cumulative impacts by ensuring that no net increase of density will result through creation of new buildable parcels or new multifamily units by retiring development rights on other buildable parcels.

C. Establish regulations to allow the transfer of development credit from buildable parcels with resource constraints in the Santa Monica Mountains Area coastal zone where development would result in individual and cumulative impacts inconsistent with Coastal Act policies, to other sites within the City of Malibu where subdivision and multifamily unit development can occur consistent with policies of the certified LCP.

D. To mitigate the cumulative impacts of the development of existing buildable parcels in the Santa Monica Mountains Area on natural resources, coastal access roads, recreational facilities and beaches by ensuring that even if land divisions or multifamily units are approved consistent with the certified LCP, that the overall number of lots and multi family units in the Santa Monica Mountains Area will not increase.

E. To create an incentive program for owners of donor lots with significant resource constraints to not develop the parcel.

A. Any coastal development permit authorizing a land division or multifamily residential development in the receiver area as required by other Chapters of the LCP Implementing Ordinances shall be conditioned on submitting evidence that TDC Credits consistent with Sections 7.7 and 7.8 of the Malibu LIP (Procedures) have been obtained prior to issuance of the coastal development permit. The burden for satisfying the procedures herein is on the applicant for the applicable coastal development permit.

B. Purchase of development rights and recordation of legal documents to retire lots in designated donor areas as part of implementing the TDC requirements does not require a coastal development permit.

The following areas are designated as donor areas where applicants with coastal development permits authorized subject to conditions to provide TDCs prior to issuance of the permit shall seek TDCs through purchase of development rights to retire lots:

A. Existing lots within the following small lot subdivisions within the Los Angeles County coastal zone:

1. Topanga Oaks

2. Malibu Vista

3. Malibu Bowl

4. Topanga Woods

5. Monte Nido

6. Vera Canyon

7. Fernwood

B. Existing lots within the following small lot subdivisions within Los Angeles County where the lots contain environmentally sensitive habitat area and are contiguous to each other or to other retired lots:

1. Malibu Lake

2. Malibu Mar Vista

3. Las Flores Heights

4. El Nido

C. Parcels not located in small lot subdivisions identified in Section 7.6 (A) or (B) of the Malibu LIP and identified as consisting predominately of environmentally sensitive habitat in the certified LCP;

D. Parcels located within the following Significant Watersheds in the Santa Monica Mountains Area as defined herein:

1. Arroyo Sequit

2. Solstice Canyon

3. Cold Creek Canyon

4. Tuna Canyon

5. Zuma Canyon

6. Malibu Canyon

7. Corral Canyon

8. Trancas Canyon

E. Parcels immediately adjacent to existing public parkland in the Santa Monica Mountains Area where development cannot be sited to avoid encroachment of fire abatement requirements onto public parklands.

F. Parcels in wildlife corridors as designated in the Santa Monica Mountains Area coastal zone.

To authorize a coastal development permit for land division or multi-family residential development pursuant to requirements of this Chapter, the approving authority under Chapter 13 of the Malibu LIP must make the following written findings:

A. The requirements for Transfer of Development Credits is necessary to avoid cumulative impacts and find the project consistent with the policies of the certified Malibu LCP;

B. The new residential building sites and/or units made possible by the purchase of TDC can be developed consistent with the policies of the certified Malibu LCP without the need for a variance or other modifications to LCP standards;

C. Open Space easements executed will assure that lot(s) to be retired will remain in permanent open space and that no development will occur on these sites.

The Planning Manager shall maintain a record of all those developments within the coastal zone that have been authorized pursuant to requirements for obtaining TDCs pursuant to this Chapter. The Record of TDCs shall include the following:

1. Permit number;

2. Name of the applicant;

3. Location of the project;

4. Brief project description;

5. Number of TDC credits required;

6. Number of lots retired through the TDC transaction;

7. Location of lots retired through the TDC transaction, including assessor parcel number(s) and copy of parcel map showing location of open space easements.

(Ord. 303 § 3, 2007; Ord. 355 § 3, 2011)