Montclair Municipal Code Ch. 11.85 Residential Density Bonus

In enacting this chapter, the City Council finds and determines as follows:

The public good is served when there exists in a City housing which is appropriate for the needs of and affordable to all members of the public who reside within that City. Among other needs, there is in the City of Montclair a need for housing affordable to low- and moderate-income households and senior citizens. Therefore, it is in the public interest for the City to promote the construction of such additional housing through the exercise of its powers and the utilization of its resources.

A. It is the purpose of this chapter to provide incentives to developers for the production of housing affordable to lower-income households, moderate-income households and senior citizens.

B. It is the purpose of this chapter to implement the goals, objectives, and policies of the housing element of the City's General Plan.

C. It is the purpose of this chapter to implement Sections 65915 through 65917 of the California Government Code.

D. Nothing in this chapter is intended to create a mandatory duty on behalf of the City or its employees under the Government Tort Claims Act and no cause of action against the City or its employees is created by this chapter that would not arise independently of the provisions of this chapter.

(Ord. 04-855 § 1 (part))

Whenever the following terms are used in this chapter, they shall have the meaning established by this section:

Additional incentives means any incentive(s) that is offered in addition to the 25 percent density bonus.

Affordable housing cost means housing for which the monthly housing costs paid by a qualifying household shall not exceed a specified fraction of the San Bernardino County median income, adjusted for household size, for the following classes of housing:

1. Extremely low-income, rental and for sale units: 30 percent times 30 percent of the San Bernardino County median income for a household size appropriate to the unit.

2. Very low-income, rental and for sale units: 30 percent times 50 percent of the San Bernardino County median income for a household size appropriate to the unit.

3. Lower-income, for sale units: 30 percent times 70 percent of the San Bernardino County median income for a household size appropriate to the unit. At the discretion of the City, affordable housing cost for a lower-income, for sale unit which is sold to a lower-income household earning not less than 70 percent of San Bernardino County income, adjusted for household size, may alternatively be 30 percent times the income of the purchaser.

4. Lower-income, rental units: 30 percent times 60 percent of the San Bernardino County median income for a household size appropriate to the unit.

5. Moderate-income, for sale units: 35 percent times 110 percent of the San Bernardino County median income for a household size appropriate to the unit. At the discretion of the City, affordable housing cost for a moderate-income, for sale unit which is sold to a moderate-income household earning not less than 110 percent of San Bernardino County income, adjusted for household size, may alternatively be 35 percent times the income of the purchaser.

6. Moderate-income, rental units: 30 percent times 110 percent of the San Bernardino County median income for a household size appropriate to the unit.

Agency means the City of Montclair Redevelopment Agency.

City means the City of Montclair.

Combined density bonus housing project means separate residential development sites which are linked by a contractual relationship such that some or all of the restricted dwelling units and/or density bonus dwelling units which are associated with one development site are produced and operated at a separate development site or sites.

Conversion means the change of status of a dwelling unit from a purchased unit to a rental unit or vice versa.

Density bonus (condominium conversions) means a minimum density increase of at least 25 percent over the number of dwelling units within the existing structure or structures proposed for conversion.

Density bonus (new residential construction) means a minimum density increase of at least 25 percent over the otherwise maximum residential density.

Density bonus dwelling units means those residential units granted pursuant to the provisions of this chapter which are above the otherwise maximum residential density of the project site.

Density bonus housing agreement means a legally binding agreement between a developer and the City and/or Agency which ensures that the density bonus requirements of this chapter are satisfied. The density bonus housing agreement establishes the number of restricted dwelling units and density bonus dwelling units, the unit sizes, location, affordability tenure, terms and conditions of affordability and unit production schedule.

Equivalent financial incentive means incentives offered by the City, which are of equivalent financial value based upon the land cost per dwelling unit(s) that are offered in-lieu of the following:

1. A density bonus and additional incentive(s); or

2. A density bonus, where an additional incentive(s) is not requested or is determined to be unnecessary.

Household size appropriate to the unit means one person for a zero bedroom (studio) unit, two persons for a one-bedroom unit, three persons for a two-bedroom unit, four persons for a three-bedroom unit, and five persons for a four-bedroom unit. Household size appropriate to a unit with more than four bedrooms shall be equal to the number of bedrooms plus one.

Housing development means a new residential development or conversion of existing residential building(s) of five or more residential dwelling units.

Incentives means such regulatory concessions as stipulated in State Government Code Section 65915(k), to include, but not be limited to, the reduction of site development standards or zoning code requirements, approval of mixed use zoning in conjunction with the housing project, or any other regulatory incentive which would result in identifiable cost reductions to enable the provision of housing for lower-income households, moderate-income households and qualifying residents.

Lower-income household means a household whose gross income is not more than the qualifying limit for lower-income households in San Bernardino County established by regulation of the State of California.

Market-rate dwelling unit means a dwelling unit where the rental rate or sales price is not restricted either by this chapter or by requirements imposed through other local, state, or federal affordable housing programs.

Maximum residential density means the maximum allowable residential density in the general plan designation, zoning, or specific plan, at the time of application.

Moderate-income household means a household whose gross income is not more than the qualifying limit for moderate-income households in San Bernardino County established by regulation of the State of California.

Monthly housing expense means the total monthly recurring expenses required of a household to obtain shelter for the 12 months after the date of determination. For a for sale unit, monthly housing expenses include loan principal and interest at the time of initial purchase by the homebuyer, cost of property and mortgage insurance, property taxes and assessments, homeowners' association dues, a reasonable allowance for utilities as determined by the San Bernardino County Housing Authority, space rent if the housing unit is on rented land, and costs of property maintenance and repairs. For a rental unit, monthly housing expenses include rent, a reasonable allowance for utilities as determined by the San Bernardino County Housing Authority, as well as all monthly payments made by the tenant to the lessor in connection with use and occupancy of a housing unit and land and facilities associated therewith, including any separately charged fees, utility charges, or service charges assessed by the lessor and payable by the tenant.

Partial density bonus means a density bonus less than the minimum number specified in this chapter.

Qualifying resident means a resident as defined in Section 51.3 of the California Civil Code.

Restricted dwelling unit means a dwelling unit that will be offered for rent or sale exclusively to and which shall be affordable to the designated income group or qualifying resident, as required by this chapter.

Very low-income household means a household whose gross income is not more than the qualifying limit for very low-income households in San Bernardino County established by regulation of the State of California.

(Ord. 04-855 § 1 (part))

The City shall grant either: a density bonus, or a density bonus with an additional incentive(s), or equivalent financial incentives as set forth in Section 11.85.100 of this chapter, to an applicant or developer of a housing development, who agrees to construct the following:

A. At least 20 percent of the total units of the housing development as restricted dwelling units as restricted and affordable to low-income households;

B. At least 10 percent of the total units of the housing development as restricted dwelling units as restricted and affordable to very low-income households; or

C. At least 50 percent of the total units of the housing development as restricted dwelling units as restricted to qualifying (senior) residents.

In determining the minimum number of density bonus dwelling units to be granted pursuant to this section, the maximum residential density for the site shall be multiplied by 0.25. Any resulting decimal fraction shall be rounded to the next larger integer.

In determining the number of restricted dwelling units to be reserved pursuant to this section, the maximum residential density shall be multiplied by 0.10 for housing developments qualifying under subsection B of this section, 0.20 for housing developments qualifying under subsection A of this section, or 0.50 for housing developments qualifying under subsection C of this section. The density bonus shall not be included when determining the number of housing units which is equal to the applicable percentage. Any resulting decimal fraction shall be rounded to the next larger integer.

In cases where a density increase of less than 25 percent is requested, including cases where a density increase is sought to satisfy inclusionary housing requirements, no reduction will be allowed in the number of restricted dwelling units required.

In cases where a density increase of more than 25 percent is requested, the requested density increase is an additional density bonus and shall be considered an additional incentive, in accordance to Section 11.85.100 of this chapter. The City Council may at its discretion grant an additional density bonus if a written finding is made by the City Council that the additional density bonus is required in order for allowable housing expenses to be set as affordable. The City in granting an additional density bonus may require some portion of the additional density bonus to be designated as restricted dwelling units.

In cases where the developer agrees to construct both 20 percent of the total units for low-income households and 10 percent of the total units for very low-income households, the developer is entitled to only one density bonus and at least one additional incentive.

A density bonus housing agreement shall be made a condition of the discretionary permits (i.e., tentative maps, parcel maps, planned unit developments, condominium permits, site development plans and redevelopment permits) for all housing developments that request a density bonus and additional incentives or equivalent financial incentives. The relevant terms and conditions of the density bonus housing agreement shall be filed and recorded as a deed restriction on those individual lots or units of a project development which are designated for the location of restricted dwelling units. The density bonus housing agreement shall be consistent with Section 11.85.120 of this chapter, and may be made a condition of City or Agency financial assistance.

(Ord. 04-855 § 1 (part))

In cases where the developer does not meet the requirements of subsection A, B or C of Section 11.85.030, but agrees to construct a condominium project as defined in a subdivision (f) of Section 1351 of the Civil Code, in which at least 20 percent of the total dwelling units are restricted to moderate-income households, the City shall grant a density bonus of at least 10 percent.

In determining the minimum number of density bonus dwelling units to be granted pursuant to this section, the maximum residential density for the site shall be multiplied by 0.10. Any resulting decimal fraction shall be rounded to the next larger integer.

In determining the number of restricted dwelling units to be reserved pursuant to this section, the maximum residential density shall be multiplied by 0.20. The density bonus shall not be included when determining the number of housing units which is equal to 20 percent of the total units of the condominium project. Any resulting decimal fraction shall be rounded to the next larger integer.

In cases where a density increase of more than 10 percent is requested, the requested density increase is an additional density bonus and shall be considered an additional incentive, in accordance with Section 11.85.100 of this chapter. The City Council may at its discretion grant an additional density bonus if a written finding is made by the City Council that the additional density bonus is required in order for allowable housing expenses to be set as affordable. The City in granting an additional density bonus may require some portion of the additional density bonus to be designated as restricted dwelling units.

A density bonus housing agreement shall be made a condition of the discretionary permits (i.e., tentative maps, parcel maps, planned unit developments, condominium permits, site development plans and redevelopment permits) for all condominium projects that request a density bonus and additional incentives or equivalent financial incentives. The relevant terms and conditions of the density bonus housing agreement shall be filed and recorded as a deed restriction on those individual lots or units of a condominium project which are designated for the location of restricted dwelling units. The density bonus housing agreement shall be consistent with Section 11.85.120 of this chapter, and may be made a condition of City or Agency financial assistance.

(Ord. 04-855 § 1 (part))

A. The City shall grant either a density bonus or equivalent financial incentives, as set forth in Section 11.85.100, to an applicant or developer proposing to convert apartments to condominiums, and who agrees to provide the following:

1. At least 33 percent of the total units of the housing development as restricted dwelling units as restricted and affordable to lower-income or moderate-income households; or

2. At least 15 percent of the total units of the housing development as restricted dwelling units as restricted and affordable to lower-income households.

B. An applicant/developer proposing to convert apartments to condominiums shall be ineligible for a density bonus or additional incentives under this section if the apartments proposed for conversion constitute a housing development for which a density bonus or additional incentives were previously provided under this chapter.

C. In determining the number of density bonus dwelling units to be granted pursuant to the standards of this section, the number of existing apartment units within the structure or structures proposed for conversion shall be multiplied by 0.25. Any resulting decimal fraction shall be rounded to the next larger integer.

D. In determining the number of restricted dwelling units to be reserved pursuant to the standards of this section, the number of existing apartment units within the structure or structures proposed for conversion shall be multiplied by 0.33 for low- or moderate-income households or 0.15 for lower-income households. The density bonus shall not be included when determining the number of housing units which is equal to 33 percent or 15 percent of the total units of the housing development. Any resulting decimal fraction shall be rounded to the next larger integer.

E. In cases where a density increase of less than 25 percent is requested, no reduction will be allowed in the number of restricted dwelling units required.

F. A density bonus housing agreement shall be made a condition of the discretionary permits (tentative maps, parcel maps, planned unit developments and condominium permits) for all condominium conversion proposals that request a density bonus or equivalent financial incentives. The relevant terms and conditions of the density bonus housing agreement shall be filed and recorded as a deed restriction on those individual lots or units of a project development which are designated for the location of restricted dwelling units. The density bonus housing agreement shall be consistent with Section 11.85.120 of this chapter, and may be made a condition of City or Agency financial assistance.

(Ord. 04-855 § 1 (part))

A. When a developer proposes to construct a housing development that conforms to the requirements of Section 11.85.030 or Section 11.85.040 of this chapter and includes a child care facility, as defined in Section 65915 of the California Government Code, that will be located on the premises of, as part of, or adjacent to, the project, the City shall grant either of the following:

1. An additional density bonus that is in the amount of square feet of residential space that is equal to or greater than the amount of square feet in the child care facility;

2. Additional incentive(s) or equivalent financial incentive(s) that contributes significantly to the economic feasibility of the construction of the child care facility.

B. The child care facility shall remain in operation for a period of at time that is equal or longer than the period of time during which the restricted dwelling units are required to remain restricted and affordable to the designated group pursuant to Section 11.85.080 of this chapter.

C. Notwithstanding the foregoing, the City shall not be required to provide a density bonus or additional incentive(s) or equivalent financial incentive(s) if it finds that the community has adequate child care facilities.

D. Of the children who attend the child care facility, the children of very low-income households, lower-income households, or families of moderate-income shall equal a percentage that is equal to or greater than the percentage of dwelling units that are required for very low-income households, lower-income households or families of moderate-income pursuant to this chapter.

(Ord. 04-855 § 1 (part))

A. Circumstances may arise from time to time in which the public interest would be served by allowing some or all of the density bonus dwelling units and/or restricted dwelling units associated with one residential project site to be produced and operated at an alternative site or sites. Where the parties in interest to the sites and the City form an agreement to such an effect, the resulting linked project sites shall be considered to be a single combined density bonus housing project.

B. It is the exclusive prerogative of the City Council to determine whether or not it is in the public interest to authorize the residential sites to form a combined density bonus housing project.

C. All agreements between parties to form a combined density bonus housing project shall be made a part of the density bonus housing agreement required for the sites.

(Ord. 04-855 § 1 (part))

A. Notwithstanding a developer's request to process a residential project pursuant to this chapter, all residential projects within redevelopment project areas may be subject to and must satisfy the requirements of the Agency.

B. Required restricted dwelling units should be constructed concurrent with market rate dwelling units unless both the City Council and the developer/applicant agree within the density bonus housing agreement to an alternative schedule for development.

C. Except as otherwise provided in this chapter, restricted dwelling units shall remain restricted and affordable to the designated group for a period of at least 30 years, or a longer period of time if required by the construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy program, under the following circumstances:

1. Density bonus and/or additional incentive(s) are granted by the City; or

2. Equivalent financial incentives in the form of direct financial contributions are granted by the City.

D. Restricted dwelling units shall remain restricted and affordable to moderate-income households for a period of at least 10 years if the units are directly related to the developer's receipt of a density bonus for the construction of a condominium project as defined in subdivision (f) of Section 1351 of the Civil Code.

E. Restricted dwelling units reserved pursuant to Section 11.85.050 of this chapter shall remain restricted and affordable to the designated group for a period of at least 45 years if the units are directly related to the developer's receipt of a density bonus or equivalent financial incentive(s) for the conversion of apartments to condominiums.

F. Restricted dwelling units reserved for qualifying (senior) residents shall remain restricted to the designated group for a period of at least 30 years, if the units are directly related to the developer's receipt of a density bonus and/or additional incentive(s) or equivalent financial incentives for reservation as to this designated group.

G. Notwithstanding the minimum affordability periods required by this chapter, all residential projects are subject to longer affordability periods if required as a condition of City and/or Agency financial assistance.

H. Restricted dwelling units and density bonus dwelling units should be built on-site and, whenever reasonably possible, be distributed throughout the project site.

I. In certain cases where a combined density bonus housing project is proposed, the restricted dwelling units and density bonus dwelling units may be provided on a site separate from the site of the market-rate dwelling units.

J. Restricted dwelling units should be located, whenever feasible, on sites that are in proximity to or will provide access to employment opportunities, urban services, or major roads or other transportation and commuter rail facilities (i.e., freeways, bus lines) and that are compatible with adjacent land uses.

K. Density bonus projects shall include a mix of restricted dwelling units (by size and number of bedrooms) which is proportionate to the mix of all units within the residential development.

L. Density bonus projects shall comply with all applicable development standards, except those which may be modified as an additional incentive as provided in this chapter with regard to additional incentives. In addition, all units must conform to the requirements of the applicable Building and Housing Codes. The design of the restricted dwelling units shall be reasonably consistent or compatible with the design of the total project development in terms of appearance, materials and finished quality.

M. No building permit shall be issued, nor any development approval granted, for a development, which does not meet the requirements of this chapter. No restricted dwelling unit shall be rented or sold except in accordance with this chapter.

(Ord. 04-855 § 1 (part))

A. At the end of the minimum tenure for rental units in projects containing restricted dwelling units or for sale restricted dwelling units the City or its designee shall have a one-time first right of refusal to purchase the project. Within 90 days of the notification of availability of the rental project or for sale restricted dwelling unit(s), the City, or its designee has the first right of refusal to buy the rental project or for sale restricted dwelling unit(s) for the purposes of providing affordable housing. In the event that the City exercises its right of first refusal, the City or its designee will make a good faith effort to close escrow within 90 days.

B. If the City or its designee fails to exercise its first right of refusal to purchase the rental project or for sale restricted dwelling unit(s) within 90 days of notification of availability of the rental project or for sale units, then the restricted dwelling units may be converted to market-rate dwelling units under the following circumstances:

1. The management of the complex intending to convert rental restricted dwelling units to market-rate dwelling units shall give notice of such intent, via registered mail, to each affected tenant household and to the City Clerk. The notice shall be given at least 180 days prior to the date proposed for conversion to market-rate rents; and

2. Each affected tenant household shall be eligible to receive rental relocation assistance in an amount equal to four months rent, or such greater amount as may be required by applicable law. Such assistance shall be provided by the owner/management company and paid to the tenant at least 60 days prior to conversion to market-rate rents.

(Ord. 04-855 § 1 (part))

A. Upon application by a developer, pursuant to Section 11.85.030 of this chapter, the City Council shall grant either a density bonus and at least one additional incentive or equivalent financial incentives to qualified lower-income or senior housing developments.

B. Upon application by a developer, pursuant to Section 11.85.040 of this chapter, the City Council shall grant either a density bonus or equivalent financial incentives to qualified condominium projects.

C. Upon application by a developer, pursuant to Section 11.85.050 of this chapter, the City Council shall grant either a density bonus or equivalent financial incentives to qualified lower-income and/or moderate-income housing developments.

D. Additional incentives or equivalent financial incentives, as defined in Section 11.85.020 of this chapter, may include, but are not limited to, the following:

1. A reduction in site development standards or a modification of zoning code requirements or architectural design requirements which exceed the minimum building standards approved by the State 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 vehicle parking spaces that would otherwise be required;

2. Approval of mixed use zoning in conjunction with the housing development if mixed use zoning will reduce the cost of developing the housing;

3. Other regulatory incentives or concessions proposed by the developer or the City which result in identifiable cost reductions;

4. Partial or additional density bonus;

5. A change of zoning designation which increases the permitted density or allows residential uses; and

6. Direct financial aid, including, but not limited to, the City's provision of money from its Housing Trust Fund, the Agency's provision of Low and Moderate Income Housing Funds, Community Development Block Grant funding, or subsidizing infrastructure, land cost or construction costs or other incentives of equivalent financial value based upon the land costs per dwelling unit.

E. The value of each incentive will vary from project to project; therefore, additional incentives or equivalent financial incentives shall be determined on a case-by-case basis.

F. The City shall provide at least one additional incentive, for qualified housing developments as set forth in Section 11.85.030 of this chapter, upon a written request by the developer unless the City makes a written finding that the additional incentive is not required in order for allowable housing expenses to be set as affordable. The applicant/owner shall be required to show that the additional incentive is economically necessary to make the units affordable as required by this chapter. The process for requesting an additional incentive and the criteria for evaluating such request is contained in Section 11.85.110 of this chapter.

G. It is the exclusive prerogative of the City to offer equivalent financial incentives, based upon the land cost per dwelling unit, instead of a density bonus and at least one additional incentive.

H. Where a density bonus would cause a housing development restricted for lower-income households, moderate-income households or qualified seniors to exceed the upper end of the general plan density range for the project site, then this request shall be evaluated relative to the proposal's compatibility with adjacent land uses and its proximity to employment opportunities, urban services or major roads.

(Ord. 04-855 § 1 (part))

A. All residential projects requesting a density bonus, additional incentive(s) or equivalent financial incentives pursuant to this chapter, shall be required to comply with the following application requirements:

1. Application for on-site restricted dwelling units. Restricted dwelling units proposed to be developed within the same project site requiring such units shall be designated on the project plans and shall be processed under a site development plan application in addition to the otherwise required project development application(s) (i.e., tentative maps, parcel maps, planned unit developments, conditional use permits and redevelopment permits). If the application involves a request to the City for direct financial incentives, then any action by the Planning Commission on the application shall be advisory only, and the City Council shall have the authority to make the final decision on the site development plan application and any related discretionary permits;

2. Application for combined density bonus housing projects. Separate development application(s) (including the submittal of a site development plan) shall be processed concurrently for both sites unless the alternative site has previously received its discretionary permits. If the application involves a request to the City for direct financial incentives, then any action by the Planning Commission on the application shall be advisory only, and the City Council shall have the authority to make the final decision on all of the required development permits.

B. Preliminary Application. An applicant/developer proposing a density bonus housing project shall submit a preliminary application prior to the submittal of any formal requests for approvals of such housing development. The preliminary application shall include the following information:

1. A brief description of the proposal including the number of restricted dwelling units and density bonus dwelling units proposed;

2. The zoning, general plan designations and assessor's parcel number(s) of the project site;

3. A site plan, drawn to scale, which includes: building footprints, driveway and parking layout, building elevations, existing contours and proposed grading; and

4. A letter identifying what specific incentives (i.e., standards modifications, density bonus, or fee subsidies) are being requested of the City. Within 30 days of receipt of the preliminary application for projects requesting direct financial assistance from the City, the City shall provide to an applicant/developer, a letter which identifies project issues of concern, the financial assistance that the Planning Director can support when making a recommendation to the City Council for its final approval and the procedures for compliance with this chapter. The applicant shall also be provided with a copy of this chapter and related policies, the pertinent sections of the California Codes to which reference is made in this chapter and all required application forms.

C. Submittal. The completed application(s) shall include the following information:

1. A legal description of the total site proposed for development of the restricted dwelling units including a statement of present ownership and present and proposed zoning;

2. A letter signed by the present owner stating what incentives, if any, is being requested from the City;

3. A detailed vicinity map showing the project location and such details as the location of the nearest commercial retail, transit stop, potential employment locations, park or recreation facilities or other social or community service facilities;

4. Site plans, designating the total number of units proposed on the site, including the number of restricted dwelling units and density bonus dwelling units, and supporting plans per the application submittal requirements;

5. In the case of a request for any incentive(s), a pro forma for the proposed project to justify the request;

6. In the case of a condominium conversion request, a report documenting the following information for each unit proposed to be converted: the monthly income of tenants of each unit throughout the prior year, the monthly rent for each unit throughout the prior year, and vacancy information for each unit throughout the prior year.

D. Review. The Community Development Director and/or his/her designated staff shall evaluate the request based upon the following criteria:

1. The density bonus housing project helps achieve the City's housing goals for lower-income, moderate-income or qualified senior households, as set forth in the housing element of the General Plan;

2. The requested incentive(s) (including, but not limited to, additional density bonuses, requests for a mixed use project, reduction in development standards, or direct or indirect financial contributions) must be necessary to make the project economically feasible;

3. The housing project shall not result in an overall development pattern that is incompatible with other land uses in the immediate vicinity;

4. The density bonus housing project complies with the General Plan, zoning and development policies of the City;

5. That the conversion of apartment units to condominiums shall not result in a reduction in the affordable housing stock for lower income groups, as of most recent inventory; and

6. In cases where pursuant to this chapter an applicant/developer otherwise qualifies for and requests an additional incentive, the City shall grant the requested incentive(s) unless the City makes a written finding that the requested incentive(s) is not required in order for allowable housing expenses to be set at affordable or the incentive(s) would be materially detrimental to public health and safety.

(Ord. 04-855 § 1 (part))

A. Applicants/developers, requesting a density bonus, additional incentives or equivalent financial incentives pursuant to this chapter, shall demonstrate compliance with this chapter by the execution of a density bonus housing agreement. A density bonus housing agreement shall be submitted by the City to the applicant. Following the approval and the signing by all parties, the completed density bonus housing agreement shall be recorded and the relevant terms and conditions therefrom filed and recorded as a deed restriction on those individual lots or units of a property which are designated for the location of restricted dwelling units. The approval and recordation shall take place prior to final map approval, or, where a map is not being processed, prior to issuance of building permits for such lots or units. The density bonus housing agreement shall be binding on all future owners and successors in interest.

B. A density bonus housing agreement for new residential construction processed pursuant to this chapter shall include the following:

1. The number of density bonus dwelling units granted;

2. The number of lower-income, moderate-income and senior dwelling units proposed;

3. The unit size(s) (square footage) of restricted dwelling units and the number of bedrooms per restricted dwelling unit;

4. The proposed location of the lower-income, moderate-income and senior restricted dwelling units;

5. Tenure of restrictions for restricted dwelling units (of at least 10 or 30 years);

6. Schedule for production of restricted dwelling units;

7. Incentives and/or financial assistance provided by the City;

8. Where applicable, tenure and conditions governing the initial sale of for sale restricted dwelling units; and

9. Where applicable, tenure and conditions establishing rules and procedures for qualifying tenants, setting rental rates, filling vacancies, and operating and maintaining units for rental restricted dwelling units.

C. A density bonus housing agreement for condominium conversions processed pursuant to this chapter shall be required to include the following:

1. The number of density bonus dwelling units granted;

2. The number of lower-income and moderate-income dwelling units proposed;

3. The unit size(s) (square footage) of restricted dwelling units and number of bedrooms per restricted dwelling unit;

4. The proposed location of the lower-income and moderate-income restricted dwelling units;

5. Tenure of affordability for restricted dwelling units;

6. Schedule for production of restricted dwelling units;

7. Equivalent financial incentives provided by the City; and

8. Terms and conditions of for sale restricted dwelling units.

D. Where an inclusionary housing agreement is required pursuant to the Agency, both the density bonus housing agreement and inclusionary housing agreement shall be combined into a single housing agreement. Where there is a conflict between the requirements of this chapter and the requirements of the Agency, the stricter requirements shall apply to the housing development.

(Ord. 04-855 § 1 (part))

A. All buyers of for sale restricted dwelling units shall enter into a density bonus resale agreement with the City prior to purchasing the unit or property. The resale agreement shall specify that the title to the subject property or unit may not be transferred without prior approval of the City.

(Ord. 04-855 § 1 (part))

Rental restricted dwelling units shall be managed/operated by the developer or his/her agent. Each developer of rental restricted dwelling units shall submit an annual report to the City identifying which units are restricted dwelling units, the monthly rent, vacancy information for each rental restricted dwelling unit for the prior year, monthly income for tenants of each rental restricted dwelling unit throughout the prior year, and other information as required by the City, while ensuring the privacy of the tenant.

(Ord. 04-855 § 1 (part))

Over the minimum tenure of projects containing restricted dwelling units, the City will either directly or, via one or more third parties, provide a number of recurring services associated with the administration and monitoring of such units. Although the provision of some of these services will be within the normal purview of existing City activities, others will involve new costs to the City for which there are no existing funding sources. Unless and until alternative funding sources are identified, it is necessary to require the builders/owners of residential projects to share in these administrative costs. Therefore, the City Council establishes an administrative fee for restricted dwelling units, the amount to be established by the City Council resolution and paid prior to the issuance of building permit(s).

(Ord. 04-855 § 1 (part))