Article 41 — Density Bonus Program

*  Sections 9-4.4100 through 9-4.4106, as added by Ordinance No. 404-C.S., effective May 23, 1984, repealed by Ordinance No. 475-86, effective December 10, 1986.

The purpose of the density bonus program is to encourage the provision of affordable housing and of rental housing. The density bonus program offers the incentive of increased density and flexibility in development standards in exchange for housing which will help meet the City's need to provide affordable and rental housing.

(§ I, Ord. 475-86, eff. December 10, 1986)

For the purposes of this article, unless otherwise apparent from the context, certain words and phrases used in this article are defined as follows:

(a)

"Affordable housing" shall mean housing with a maximum sales price or rent that is affordable by lower and/or very low income households, as published by the State Department of Housing and Community Development based upon information from the Department of Housing and Urban Development (HUD) for San Mateo County. Affordable housing costs shall be calculated by the City according to the formula set forth in Section 9-4.4105 of this article.

(b)

"Density Bonus" shall mean a program which allows projects providing residential rental units, affordable housing, or housing for elderly or disabled persons to exceed the otherwise maximum residential zoning density and the maximum General Plan residential density of the site when approved by the Planning Commission. Density bonus units shall not be included when calculating the number of affordable units required to qualify for a density bonus.

(c)

"Elderly persons" shall mean persons sixty-two (62) years of age or older, or fifty-five (55) years of age or older in a residential development with at least 150 units targeted for elderly persons.

(d)

"Housing for the disabled" shall mean housing accessible to the disabled, as defined by the HEW 504 regulations.

(e)

"Moderate income units" shall mean housing with a maximum sales price or rent that is affordable by moderate income households, as published by the State Department of Housing and Community Development based upon information from the Department of Housing and Urban Development (HUD) for San Mateo County. Moderate income unit housing costs shall be calculated by the City according to the formula set forth in Section 9-4.4105 of this article.

(§ I, Ord. 475-86, eff. December 10, 1986, as amended by § 1, Ord. 587-C.S., eff. February 12, 1992)

(a)

Rental housing.

(1)

Projects constructed entirely as market rate multiple-family rental housing may be entitled to a fifteen (15%) percent density bonus above the maximum density designation for the site.

(2)

Qualifying projects shall remain available as rental housing for a minimum of thirty (30) years after the issuance of the certificate of occupancy.

(b)

Affordable housing.

(1)

Projects providing at least twenty (20%) percent of the total units for lower income households or at least ten (10%) percent of the total units for very low income households shall be entitled to a twenty-five (25%) percent density bonus and an additional incentive as set forth in Section 9-4.4104.

(2)

Projects providing both twenty (20%) percent of the total units for lower income households and ten (10%) percent of the total units for very low income households shall not be entitled to more than one density bonus, unless otherwise determined by the Planning Commission, but shall be entitled to one additional incentive as set forth in Section 9-4.4104.

(3)

Projects which receive a twenty-five (25%) percent density bonus pursuant to subsection (1) above may be granted up to a fifty (50%) percent density bonus as follows:

(i)

To qualify for up to a fifty (50%) percent density bonus, the maximum feasible number of very low income, lower income, and/or moderate income units shall be provided in addition to the minimum requirements for a twenty-five (25%) percent density bonus contained in this section. The feasible number of very low, lower, and/or moderate income units to be provided shall be determined by the Planning Commission.

(ii)

Units shall be provided within the lowest income categories feasible, as determined by the Planning Commission.

(c)

Housing for the elderly or disabled.

(1)

Projects providing at least fifty (50%) percent of the total units for elderly persons shall be entitled to a twenty-five (25%) percent density bonus.

(2)

Projects providing housing exclusively for elderly or disabled persons may be granted up to a fifty (50%) percent density bonus provided that all of the bonus units are provided within the very low, lower, and/or moderate income categories. Additional affordable and/or moderate income units shall be provided if determined feasible by the Planning Commission. Units shall be provided within the lowest income categories feasible, as determined by the Planning Commission.

(§ I, Ord. 475-86, eff. December 10, 1986, as amended by § 2, Ord. 587-C.S., eff. February 12, 1992)

(a)

Affordable housing units shall be integrated into the overall design and layout of the development and shall be architecturally compatible with the market rate units on the subject property.

(b)

Where phasing of the construction is necessary, a phasing plan shall be submitted showing the ratio of affordable bonus units and market rate units to ensure the affordable housing units are constructed and made available for sale or rent at the same time as the market rate units.

(c)

A use permit shall be required.

(d)

When numbers are rounded for density bonus calculations, exact numbers shall be used, and rounding shall only occur at the final calculation.

(e)

The density bonus program shall apply to housing Developments consisting of five (5) or more dwelling units. The Planning Commission may, however, grant density bonuses to projects with fewer than five units provided that the site is physically suitable for the proposed density.

(§ I, Ord. 475-86, eff. December 10, 1986, as amended by § 3, Ord. 587-C.S., eff. February 12, 1992)

(a)

Rental housing. Any rental housing project constructed in accordance with the density bonus program which project has ten (10) or more required parking spaces may provide up to one-third () of the required

parking spaces for compact cars.

(b)

Affordable Housing. Projects which provide affordable units in accordance with the density bonus program shall be entitled to at least one of the following incentives unless the Planning Commission finds that such incentive is not required in order to provide for affordable housing costs pursuant to Government Code Section 65915(b):

(1)

For projects with ten (10) or more required parking spaces, up to one-third (⅓) of the total required spaces may be for compact cars; or

(2)

Affordable units may have up to twenty (20%) percent less interior floor area than the average interior floor area of market rate units with the same number of bedrooms; provided that the affordable units meet the minimum dwelling unit size and floor area specified in this Code and the Uniform Building Code; or

(3)

A maximum of a twenty (20%) percent reduction in required lot area; or

(4)

A maximum reduction of twenty (20%) percent in setback requirements; or

(5)

A maximum increase of twenty (20%) percent in lot coverage; or

(6)

A reduction of planning application fees; or

(7)

Other incentive or incentives, as determined by the Planning Commission, which can be shown to result in identifiable construction cost reductions.

(c)

Housing for the elderly or disabled. Projects which provide housing for the elderly or disabled in accordance with the density bonus program shall be entitled to at least one of the following incentives:

(1)

Required parking for housing for the elderly may be provided at a ratio of one parking space for every two (2) units;

(2)

One of the incentives listed in subsection (b) of this section.

(d)

The specific incentives, as listed in subsections (b) and (c) of this section, to be granted to a housing development shall be subject to the approval of the Planning Commission. The following regulations also apply:

(1)

A developer may submit a preliminary proposal for a housing development to the Planning Administrator prior to any formal project application. Within ninety (90) days of submission, the Planning Administrator shall notify the developer of the procedures for implementing the density bonus program.

(2)

A developer may request a waiver or modification to zoning or development standards which the developer contends would inhibit the utilization of a density bonus on a specific site. If the incentive requested by a housing developer involves a modification to zoning or development standards, the developer must submit evidence to prove that the modification is necessary to make the housing units economically feasible.

(3)

The Commission may also grant additional incentives if such additional incentives are necessary to make the housing units economically feasible.

(4)

The Commission may deny the request for an incentive only if it finds and establishes that the development, with the affordable units, would be economically feasible without the incentive.

(§ I, Ord. 475-86, eff. December 10, 1986, as amended by §§ 4 and 5, Ord. 587-C.S., eff. February 12, 1992)

(a)

Rent structure: San Mateo County Housing Authority. Rental units may be administered by the County Housing Authority in accordance with the following regulations:

(1)

Rental rates shall follow the most current Section 8 Fair Market Rent Schedule.

(2)

The County Housing Authority shall be responsible for annually qualifying households and distributing Section 8 certificates.

(3)

Qualified City residents shall be granted preference in obtaining Section 8 certificates.

(b)

Rent structure — City of Pacifica. Rental units may be administered by the City in accordance with the following regulations:

(1)

Units for lower income households shall be offered at a rent that does not exceed thirty (30%) percent of sixty (60%) percent of the most current household size-adjusted median income for San Mateo County as established by HCD. The maximum rent for units targeted for lower income households shall be calculated by using the following formula:

[.60 × Household size - adjusted Area Median Income × .30] ÷ 12.

(2)

Units for very low income households shall be offered at a rent that does not exceed thirty (30%) percent of fifty (50%) percent of the nost current household size-adjusted median income for San Mateo County as established by HCD. The maximum rent for units targeted for very low income households shall be calculated using the following formula:

[.50 × Household size-adjusted Area Median Income × .30] ÷ 12

(3)

Units for moderate income households shall be offered at a rent that does not exceed thirty (30%) percent of eighty (80%) percent of the most current household size-adjusted median income for San Mateo County as established by HCD. The maximum rent for units targeted for moderate income households shall be calculated using the following formula:

[.80 × Household size-adjusted Area Median Income × .30] ÷ 12

(4)

Monthly rental costs, for the purpose of this subsection, shall include water, garbage, and sewer costs.

(5)

The household to which a unit is rented shall be qualified as a very low, lower or moderate income household as defined in this article by either the City or its designee.

(c)

Ownership housing costs.

(1)

Lower income units shall be sold at a price where households earning seventy (70%) percent of the most current household size-adjusted median income for San Mateo County as established by HCD would spend no more than thirty-three (33%) percent of their gross monthly income toward all monthly housing costs.

(2)

Very low income units shall be sold at a price where households earning sixty (60%) percent of the most current household size-adjusted median income for San Mateo County as established by HCD would spend no more than thirty-three (33%) percent of their gross monthly income toward all monthly housing costs.

(3)

Moderate income units shall be sold at a price where households earning between eighty (80%) and one hundred (100%) percent of the most current household size-adjusted median income for San Mateo County as established by HCD would spend no more than thirty- three (33%) percent of their gross monthly income toward all monthly housing costs. Units shall be provided at the low end of the range if determined feasible by the Planning Commission.

(4)

Monthly housing costs, for the purpose of this subsection, shall include mortgage, insurance, taxes, and any required monthly or yearly association fees unless otherwise determined by the Planning Administrator.

(5)

The household to which a unit is sold shall be qualified as a very low, lower or moderate income household as defined by HUD by either the City or designee.

(d)

Ownership and management. Affordable rental units provided in accordance with the density bonus program, which units are within ownership housing projects, shall be owned and managed as a unit by the developer. The ownership may be transferred; however, the units shall not become the responsibility of a homeowner's association. The monthly maintenance fees shall be paid by the owner or shall be subtracted from the maximum rent allowed.

(e)

For the purposes of determining household size for affordable units, the following chart shall be used:

Unit Size Household Size

0 bedroom (studio) 1 person

1 bedroom 2 persons

2 bedrooms 3 persons

3 bedrooms 4 persons

4 bedrooms 6 persons

5+ bedrooms 8 persons

(§ I, Ord. 475-86, eff. December 10, 1986, as amended by §§ 6 and 7, Ord. 587-C.S., eff. February 12, 1992)

(a)

Rental units.

(1)

Affordable rental units shall be rented to qualifying households and shall be maintained at rent levels established in accordance with the most current City calculations derived from the income, rent, and cost structure provisions set forth in Section 9-4.4105 of this article.

(2)

The developer and/or owner shall agree and bind any successors to maintain rent levels as established pursuant to subsection (1) of this subsection. Agreements regarding rent levels shall be by legal arrangements approved as to form by the City Attorney.

(3)

Affordable units shall be maintained at affordable rents as defined in this article for a minimum of thirty (30) years. However, if no incentive is granted as set forth in Section 9-4.4104 of this article, the affordable units shall be maintained at affordable prices for a minimum of ten (10) years.

(4)

For rental units within an otherwise for-sale development, rental units may be converted to ownership housing provided the converted rental unit is affordable to the same income group it was originally intended to serve (see Section 9-4.4105 of this article) and it meets the requirements of this section relative to ownership housing. Ownership units which are subsequently rented shall be required to conform to the rent structure set forth in said Section 9-4.4105.

(b)

Ownership housing.

(1)

Resale controls shall be by legal arrangements approved as to form by the City Attorney. Resale controls shall be incorporated into the deed as a deed restriction and shall be incorporated as part of the covenants, conditions, and restrictions where applicable in order to guarantee the occupancy of affordable units by

lower and very low income households for a minimum of thirty (30) years. However, if no incentive is granted as specified in Section 9-4.4104 of this article, occupancy of the affordable units by lower and very low income households shall be guaranteed for minimum of ten (10) years.

(2)

Resale controls shall limit the appreciation of equity to the increase in the permissible sales price between the time of the purchase and the time of the sale as established by the City or its designee in accordance with the standards set forth in Section 9-4.4105 of this article.

(c)

Housing for the elderly or disabled.

(1)

For housing developments qualifying for a density bonus that provide housing for the elderly and/or disabled, the developer and/or owner shall be required to agree and to bind any successors to maintain the units a minimum of thirty (30) years for such housing. However, if no incentive is granted as specified in Section 9-4.4104 of this article, the units shall be maintained for such housing for a minimum of ten (10) years. Legal arrangements regarding occupancy and costs shall be approved as to form by the City Attorney.

(2)

Affordable elderly or disabled units shall be maintained as such for a minimum of thirty (30) years. However, if no incentive is granted as specified in Section 9-4.4104 of this article, affordable elderly or disabled units shall be maintained as such for a minimum of ten (10) years.

(§ I, Ord. 475-86, eff. December 10, 1986, as amended by § 8, Ord. 587-C.S., eff. February 12, 1992)