Modesto Municipal Code Art. 3 Density Bonus: Projects Ineligible for a Density Bonus

Pursuant to Government Code Section 65915, a housing development shall be ineligible for a density bonus or any other incentive or concession, if any of the following is applicable:

(a) The housing development is proposed on any property that includes a parcel or parcels on which rental dwelling units are or, if the dwelling units have been vacated or demolished in the five-year period preceding the density bonus application, have been subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of lower or very low income; or,

(b) The housing development is proposed on any property that includes a parcel or parcels on which rental dwelling units are subject to any other form of rent or price control through a public entity's valid exercise of its police power; or,

(c) The housing development is proposed on any property that includes a parcel or parcels on which dwelling units are occupied by lower or very low-income households.

(Ord. No. 3762-C.S., effective § 4, effective 5-11-23)

A housing development found ineligible for a density bonus pursuant to Section 10-8.301 and Government Code Section 65915, may be deemed eligible if the proposed housing development replaces those units, specified in Section 10-8.301, and either of the following applies:

(a) The proposed housing development, inclusive of the units replaced pursuant to this article, contains affordable units at the percentages set forth in Article 8 (Density Bonus: Calculations), or,

(b) Each unit in the development, exclusive of a manager's unit or units, is affordable to, and occupied by, either a lower or very low-income household.

(Ord. No. 3762-C.S., effective § 4, effective 5-11-23)

For the purposes of this article, "replace" shall mean either (a) or (b), below, as applicable.

(a) Occupied Units. If any dwelling units described in Section 18-8.301 are occupied on the date of application, the proposed housing development shall provide at least the same number of units of equivalent size to be made available at affordable rent or affordable housing cost to, and occupied by, persons and families in the same or lower income category as those households in occupancy.

(b) Unoccupied Units. For unoccupied dwelling units described in Section 18-8.301 in a development with occupied units, the proposed housing development shall provide units of equivalent size to be made available at affordable rent or affordable housing cost to, and occupied by, persons and families in the same or lower income category as the last household in occupancy.

(c) If the income category of the last household in occupancy or of the household in occupancy is not known (whichever is applicable) it shall be rebuttably presumed that lower income renter households occupied those units in the same proportion of lower income renter households to all renter households within the jurisdiction, as determined by the most recently available data from the United States Department of Housing and Urban Development's Comprehensive Housing Affordability Strategy database.

(d) All replacement calculations resulting in fractional units shall be rounded up to the next whole number.

(e) If the replacement units will be rental dwelling units, these units shall be subject to a recorded affordability restriction for at least fifty-five (55) years.

(f) If the proposed development is for-sale units, the units replaced that be subject to Section 10-8.808 (For Sale Units) in Article 8 (Density Bonus: Calculations).

(Ord. No. 3762-C.S., effective § 4, effective 5-11-23)

Notwithstanding Section 10-8.301 and 10-8.302, above, for any dwelling unit described in Section 10-8.301 that is or was, within the five-year period preceding the [Density Bonus] application, subject to a form of rent or price control through a local government's valid exercise of its police power and that is or was occupied by persons or families above lower income, the City may do either of the following:

(a) Require that the replacement units be made available at affordable rent or affordable housing cost to, and occupied by, low-income persons or families. If the replacement units will be rental dwelling units, these units shall be subject to a recorded affordability restriction of at least fifty-five (55) years. If the proposed development is for-sale units, the units replaced shall be subject to the requirements of Section 10-8.808; or,

(b) Require that the units to be replaced in compliance with the City's rent or price control ordinance, provided that each unit described in Section 10-8.301 is replaced. Unless otherwise required by the jurisdiction's rent or price control ordinance, these units shall not be subject to a recorded affordability restriction.

(Ord. No. 3762-C.S., effective § 4, effective 5-11-23)