Modesto Municipal Code Art. 4 Density Bonus: Incentives or Concessions

For the purpose of this chapter, incentive or concession means any of the following:

(a) 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 as provided in Part 2.5 (commencing with Section 18901) of Division 13 of the Health and Safety Code, 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, as defined in Section 50052.5 of the Health and Safety Code, or for rents for the targeted units to be set as specified in Article 8 (Density Bonus: Calculations).

(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 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.

(c) Other regulatory incentives or concession proposed by the developer or the city that result in identifiable and actual cost reductions to provide for affordable housing costs, as defined in Section 50052.5 of the Health and Safety Code, or for rents for the targeted units to be set as specified in Article 8 (Density Bonus: Calculations).

(d) This Article does not limit or require the provision of direct financial incentive for the proposed housing development, including the provision of publicly owned land, by the city, or the waiver of fees or dedication requirements.

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

In compliance with this chapter and Government Code Section 65915 (d) and (e), an applicant for a density bonus may submit a proposal to the city for specific incentives, concessions, and/or a waiver or reduction of development standards that would have the effect of physically precluding the construction of a development meeting the requirements of this chapter; and may request a meeting with the Department.

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

The city shall grant the concession, incentive, and/or waiver or reduction of development standards requested by the density bonus applicant, unless the city makes a written finding, based upon substantial evidence, of any of the following:

(a) The proposed concession or incentive does not result in identifiable and actual cost reductions, consistent with this section, to provide for affordable housing costs as defined in Section 50052.5 of the Health and Safety Code, or for rents for the targeted units to be set as specified in Article 8 (Density Bonus: Calculations).

(b) The proposed concession, incentive, and/or waiver or reduction of development standards would have a specific, adverse impact, as defined in paragraph (2) of subdivision (d) of Section 65589.5, upon public health and safety or on any real property that is listed in the California Register of Historic Resources and for which there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact without rendering the development unaffordable to low-income and moderate-income households.

(c) The proposed concession, incentive, and/or waiver or reduction of development standards would be contrary to state or federal law.

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

An applicant shall receive the following number of incentives or concessions. A proposal for a waiver or reduction of development standards pursuant to this article shall neither reduce nor increase the number of incentives or concessions to which the applicant is entitled to pursuant to this Article.

(a) One (1) incentive or concession for a project that includes either of the following:

(1) At least ten (10) percent of the total units for lower income households, at least five (5) percent for very low-income households, or at least ten (10) percent for persons and families of moderate income in a development in which the units are for sale; or

(2) At least twenty (20) percent of the total units for lower income students in a student housing development.

(b) Two (2) incentives or concessions for a project that includes at least seventeen (17) percent of the total units for lower income households, at least ten (10) percent for very low-income households, or at least twenty (20) percent for persons and families of moderate income in a development in which the units are for sale.

(c) Three (3) incentives or concessions for a project that includes at least twenty-four (24) percent of the total units for lower income households, at least fifteen (15) percent for very low-income households, or at least thirty (30) percent for persons and families of moderate income in a development in which the units are for sale.

(d) Four (4) incentives or concessions for a project where one-hundred (100) percent of all units in the development, including total units and density bonus units, but excluding a manager's unit(s), are for lower income households, as defined in Section 50079.5 of the Health and Safety Code, except that up to twenty (20) percent of the units in the development, including total units and density bonus units, may be for moderate-income households, as defined in Section 50053 of the Health and Safety Code.

(1) If a project in subparagraph (d), above, is located within one-half (0.5) mile of a major transit stop, the applicant shall also receive a height increase of up to three (3) additional stories, or thirty-three (33) feet.

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

Approval or denial of the requested incentives or concessions, shall be by the City Council. Denial shall be by a written finding, based upon substantial evidence, pursuant to section 10-8.403, above.

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