Division 8 — INCENTIVES TO CONVERT APARTMENTS TO AFFORDABLE CONDOMINIUM UNITS

The purpose of this division is to adopt methods and procedures for processing applications to convert apartments to condominium units, some of which are set aside for moderate, low or lower income households, as set out in Cal. Gov’t Code, Section 65915.5 (“the statute”).

(`64 Code, Sec. 36-7.15.1) (Ord. No. 2505, 2789)

When an applicant for approval to convert apartments to condominium units agrees to provide the percentage of units for moderate, low or lower income persons, families and households set out in the statute and agrees to pay the reasonably necessary administrative costs incurred by the city, the actions and procedures set out in sections 16-428 through 16-435 shall apply. The applicant shall apply for and obtain a density bonus permit in order to be granted a density bonus or other incentives in accordance with the statute.

(`64 Code, Sec. 36-7.15.2) (Ord. No. 2505, 2789)

(A) AFFORDABLE UNITS - Units set aside for moderate, low or lower income households in accordance with the statute.

(B) DENSITY BONUS - An increase in unity to 25% over the number of apartments, to be provided within the existing structure or structures proposed for conversion.

(C) Terms used in this division that are also used in the statute shall have the meaning in this division that such terms have in the statute. If there is any inconsistency between this division and the statute, this division shall be construed in a manner consistent with the statute.

(`64 Code, Sec. 36-7.15.3) (Ord. No. 2505, 2789)

(A) A preliminary proposal, referred to in section 16-429, and an application for a condominium density bonus permit, referred to in section 16-430, shall be accompanied by the fee set by resolution of the city council. City staff shall not act on a preliminary proposal or an application that is not accompanied by the fee.

(B) If a preliminary proposal or an application for a condominium density bonus permit requires an unusual amount or specialized type of study or evaluation by city staff, a consultant or legal counsel, city staff shall estimate the cost thereof and require the applicant to pay an additional fee or make one or more deposits to pay such cost before the study or evaluation is begun. On completion of the study or evaluation, and before city staff responds to the preliminary proposal or the city council decides the application, city staff shall determine the actual cost of the work and the difference between the actual cost and the amount paid by the applicant, and shall require the applicant to pay any deficiency or shall refund to the applicant any excess.

(`64 Code, Sec. 36-7.15.4) (Ord. No. 2505, 2789)

(A) If a developer submits a preliminary proposal for the conversion of apartments to condominiums pursuant to the statute before submitting any formal requests for subdivision map approvals, city staff shall, within 90 days of receiving the proposal, notify the developer in writing that the city will apply the procedures set out in this division in order to comply with the statute.

(`64 Code, Sec. 36-7.15.5) (Ord. No. 2505, 2789)

An application for a condominium density bonus permit shall include the following information, whether or not the project also requires or has been granted any other approvals or permits, including the special use permit required by section 16-381:

(A) A description of the project, including the number of condominium units, the number of affordable units, and the location of the affordable units;

(B) Whether the developer prefers that the city grant a density bonus or provide other incentives of equivalent financial value and if the latter, a description of such incentives, their financial value, and the basis for calculating that value;

• (C) The proposed sale or rental price of all units, and especially of the affordable units;

(D) The proposed method to guarantee that the applicant will establish the sales or rental prices as stated in the proposal;

(E) The proposed method and length of time of ensuring for a specified number of years the continued affordability of the affordable units to subsequent purchasers who are persons and families of low and moderate income or lower income households; and

• (F) Other relevant information requested by city staff.

(`64 Code, Sec. 36-7.15.6) (Ord. No. 2505, 2789)

City staff may require the applicant to clarify, amplify, correct or otherwise supplement the application. (`64 Code, Sec. 36-7.15.8) (Ord. No. 2505, 2789)

The applicant shall design the project so that the affordable units are dispersed throughout the project, have a number of bedrooms proportionate to the number of bedrooms in other units in the project, and do not differ in appearance, size and amenities from other units in the project; provided, however, that the interior appearance and amenities of the affordable units may differ from other units in the project as an incentive for the project, as specified by the city council in the resolution granting the condominium density bonus permit. (`64 Code, Sec. 36-7.15.9) (Ord. No. 2505, 2789)

After city staff deems the application to be complete, city staff shall make a recommendation to the planning commission concerning the density bonus or incentives of equivalent financial value. (`64 Code, Sec. 36-7.15.10) (Ord. No. 2505, 2789)

(A) The secretary of the planning commission shall give notice as provided in Cal. Gov't Code, Section 65091 of the planning commission's public hearing on the application for a condominium density bonus permit. At the same time, the secretary shall also give the applicant written notice of the date, time and place of the hearing.

(B) The planning commission shall hold a public hearing on the application for a condominium density bonus permit. The planning commission may continue the public hearing. Not more than 30 days after the close of the public hearing, the commission shall adopt a resolution recommending to the city council that the application be approved or denied, and stating any conditions to approval of the application.

(C) If the planning commission recommends approval of a condominium density bonus permit, the commission may recommend a density bonus or incentives the same as or different from those requested by the applicant or recommended by city staff.

(D) Before recommending approval of a condominium density bonus permit, the applicant must show and the planning commission must make all of the following findings regarding the project and the proposed density bonus or other incentives recommended for approval:

• (1) The project meets the criteria set out in the statute.

• (2) The density bonus or incentives will not adversely affect or be materially detrimental to uses or property adjacent to the subject property or to the public health, safety or welfare.

(3) The subject property is adequate in size and shape and served by adequate infrastructure to accommodate the density bonus or incentives.

(4) If one or more incentives are recommended instead of a density bonus, such incentive or incentives are of equivalent financial value to a density bonus.

(5) The applicant has proposed a satisfactory method to guarantee that the sales or rental prices will be established as stated in the application.

(6) The applicant has agreed to a satisfactory method of ensuring for a specified number of years the continued affordability of the affordable units to subsequent purchasers who are persons and families of low and moderate income or lower income households.

(7) The affordable units are dispersed throughout the project, have a number of bedrooms proportionate to the number of bedrooms in other units in the project, and do not differ in appearance, size or amenities from other units in the project, except as specified by the planning commission in accordance with section 16-432.

(E) Within 30 days of the date that the planning commission renders its decision, the city council shall hold a public hearing on the application and shall consider the commission's recommendation, which the city council may affirm, deny or modify. The city clerk shall give notice of the hearing as provided in Cal. Gov't Code, Section 65091. At the same time, the city clerk shall also give the applicant written notice of the date, time and place of the hearing. The city council may continue the public hearing.

ic hearing on the application and shall consider the commission's recommendation, which the city council may affirm, deny or modify. The city clerk shall give notice of the hearing as provided in Cal. Gov't Code, Section 65091. At the same time, the city clerk shall also give the applicant written notice of the date, time and place of the hearing. The city council may continue the public hearing.

(F) Within 30 days of the close of the public hearing, the city council shall adopt a resolution approving or denying the application for a condominium density bonus permit. If the city council approves a condominium density bonus permit, the city council may approve a density bonus or incentives the same as or different from those requested by the applicant or recommended by the commission.

(G) If the city council approves a condominium density bonus permit, the resolution shall include the finds set out in subsection (D)(1) through (7) of this section and shall state any conditions on which the permit is approved. (`64 Code, Sec. 36-7.15.11) (Ord. No. 2505, 2789)

No condominium density bonus permit shall be granted unless the developer agrees to a satisfactory method of ensuring for a specified number of years the continued affordability of the affordable units to subsequent purchasers who are persons and families of low and moderate income or lower income households. (`64 Code, Sec. 36-7.15.12) (Ord. No. 2505, 2789)