Petaluma Municipal Code Ch. 27 Residential Density Bonus

Sections:

27.010 Purpose and Intent.

27.020 De7nitions.

27.030 Eligibility Criteria.

27.040 Density Bonus and Incentive or Concession Calculation.

27.050 Development Standards for A8ordable Units.

27.060 Density Bonus for Development of Child Care Center.

27.070 Development Concessions and Incentives.

27.080 General Application Requirements.

27.090 Density Bonus Housing Agreement.

This chapter is intended to provide incentives for the production of housing for Very Low, Lower Income,

Moderate or Senior Housing in accordance with California state law.

The purpose of this chapter is to:

A. Comply with the state density bonus law in accordance with the requirements California Government Code

Section 65915 and amendments and successor statutes.

B. Establish procedures for implementing the state density bonus requirements as set forth in California

Government Code Section 65915, as amended.

C. Facilitate the development of aLordable housing consistent with the goals, policies, and programs of the

City’s Housing Element.

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

A. A)ordable Rent. Monthly housing expenses, including a reasonable allowance for utilities, for Rental Restricted

ALordable Units reserved for Very Low or Lower Income Households, not exceeding the following calculations:

1. Very Low Income: 50 percent of the area median income for Sonoma County, adjusted for household

size, multiplied by 30 percent and divided by 12.

2. Lower Income: 60 percent of the area median income for Sonoma County, adjusted for household size,

multiplied by 30 percent and divided by 12.

B. Child Care Center. See the deJnition of “Child Care Center” in Glossary.

C. Concession or Incentive. Used interchangeably means such regulatory concessions as speciJed in California

Government Code Section 65915 subdivisions (d) and (h) including, but not limited to, the reduction of site

development standards or zoning code requirements, direct Jnancial assistance, approval of mixed use zoning in

conjunction with the Housing Development, or any other regulatory incentive which would result in identiJable

cost avoidance or reductions that are oLered in addition to a Density Bonus. See Section 27.070 of this chapter.

D. Density Bonus. A density increase for residential units over the otherwise allowed residential density under the

applicable zoning and land use designation on the date an application is deemed complete.

E. Density Bonus Housing Agreement. A legally binding agreement between a developer and the City to ensure

that the requirements of this chapter are satisJed. The agreement, among other things, shall establish: the

number of Restricted ALordable Units, their size, location, terms and conditions of aLordability, and production

schedule. See Section 27.070 of this Chapter.

F. Density Bonus Units. Those residential units granted pursuant to the provisions of this chapter which exceed

the otherwise Maximum Residential Density for the development site.

G. Housing Cost. The sum of actual or projected monthly payments for all of the following associated with for-

sale Restricted ALordable Units: principal and interest on a mortgage loan, including any loan insurance fees,

property taxes and assessments, Jre and casualty insurance, property maintenance and repairs, homeowner

association fees, and a reasonable allowance for utilities.

H. Housing Development. Construction projects consisting of Jve or more residential units, including single family,

multifamily, and mobilehomes for sale or rent, pursuant to this chapter.

I. Low Income Household. Households whose income does not exceed the lower income limits applicable to

Sonoma County, as published and periodically updated by the State Department of Housing and Community

Development pursuant to Section 50079.5 of the California Health and Safety Code.

J. Maximum Residential Density. The maximum number of residential units permitted by the City’s General Plan

Land Use Element and Zoning Ordinance at the time of application, excluding the provisions of this chapter. If the

housing development is within a planned unit development zone, the maximum residential density shall be

determined on the basis of the general plan and the maximum density of the underlying zone.

K. Moderate Income Household. A household whose gross income does not exceed 120 percent of the area

median income for Sonoma County as published and periodically updated by the State Department of Housing

and Community Development pursuant to Sections 50079.5 and 50052.5 of the California Health and Safety Code.

L. Non-Restricted Unit. All units within a Housing Development excluding the Restricted ALordable Units.

M. Qualifying Resident. Senior citizens or other persons eligible to reside in Senior Citizen Housing.

N. Restricted A)ordable Unit. A dwelling unit within a Housing Development which will be available for Moderate

Income Households or Very Low and/or Low Income Households.

O. Senior Citizen Housing. A Housing Development consistent with the California Fair Employment and Housing

Act (Government Code Section 12900 et. seq., including 12955.9 in particular), which has been “designed to meet

the physical and social needs of senior citizens,” and which otherwise qualiJes as “housing for older persons” as

that phrase is used in the federal Fair Housing Amendments Act of 1988 (P.L. 100-430) and implementing

regulations (24 CFR, part 100, subpart E), and as that phrase is used in California Civil Code Section 51.2 and 51.3.

P. Very Low Income Household. Households whose income does not exceed the very low income limits applicable

to Sonoma County, as published and periodically updated by the State Department of Housing and Community

Development pursuant to Section 50105 of the California Health and Safety Code.

A. The City shall grant either: a Density Bonus, or a Density Bonus with a Concession or Incentive(s), as set forth

in Section 27.070 of this Chapter, to an applicant or developer of a Housing Development, who agrees to provide

one of the following:

1. At least ten percent of the total units of the Housing Development as Restricted ALordable Units

aLordable to Lower Income Households; or

2. At least Jve percent of the total units of the Housing Development as Restricted ALordable Units

aLordable to Very Low Income Households; or

3. A Senior Citizen Housing Development, as deJned herein; or

4. Ten percent of the total dwelling units in a common interest development as deJned in Civil Code

section 4100 for persons and families of Moderate Income Households as deJned herein, provided that all

units in the development are oLered to the public for purchase.

A. The City will allow a Housing Development a Density Bonus and/or a Concessions or Incentive if it meets all

the applicable requirements of this chapter. In the event that the minimum requirements for granting a Density

Bonus or Concessions or Incentives as set forth in California Government Code section 65915 are amended or

modiJed after the adoption of this chapter by the City, then the lowest applicable minimum requirements in

section 65915 or successor statutes shall apply.

B. When calculating the required number of Restricted ALordable Units, any resulting decimal fraction shall be

rounded to the next larger integer.

C. Density Bonus for Low Income Households. If a housing developer elects to construct units for Low Income

Households, the Housing Development shall be entitled to a density bonus according to the following Density

Bonus calculation:

Provision of Low Income Units

Percentage Low Income Number of Incentives or
Percentage Density Bonus
Units Concessions

10% 20% 1

11% 21.5% 1

12% 23% 1

13% 24.5% 1

14% 26% 1

15% 27.5% 1

16% 29% 1

17% 30.5% 1

18% 32% 1

19% 33.5% 1

20% 35% 2

30% 35% 3

D. Density Bonus for Very Low Income Households. If a housing developer elects to construct units for Very Low

Income Households, the Housing Development shall be entitled to a density bonus according to the following

Density Bonus calculation:

Provision of Very Low Income Units

Percentage Very Low Number of Incentives or
Percentage Density Bonus
Income Units Concessions

5% 20% 1

6% 22.5% 1

Provision of Very Low Income Units

Percentage Very Low Number of Incentives or Percentage Density Bonus Income Units Concessions

7% 25% 1

8% 27.5% 1

9% 30% 1

10% 32.5% 2

11% 35% 2

15% 35% 3

E. Density Bonus for Moderate Income Households. If a housing developer elects to construct units for Moderate

Income Households, the Housing Development shall be entitled to a density bonus based on the following Density

Bonus calculation:

Provision of Moderate Income Units

Percentage Moderate Number of Incentives or
Percentage Density Bonus
Income Units Concessions

10% 5% 1

11% 6% 1

12% 7% 1

13% 8% 1

14% 9% 1

15% 10% 1

16% 11% 1

17% 12% 1

18% 13% 1

19% 14% 1

Provision of Moderate Income Units

Percentage Moderate Number of Incentives or
Percentage Density Bonus
Income Units Concessions

20% 15% 2

21% 16% 2

22% 17% 2

23% 18% 2

24% 19% 2

25% 20% 2

26% 21% 2

27% 22% 2

28% 23% 2

29% 24% 2

30% 25% 3

31% 26% 3

32% 27% 3

33% 28% 3

34% 29% 3

35% 30% 3

36% 31% 3

37% 32% 3

38% 33% 3

39% 34% 3

40% 35% 3

F. Density Bonus for Land Donation. When an applicant for a tentative subdivision map, parcel map, or other

residential development approval donates land that satisJes the requirements as set forth in subsection 3 of this

section, the applicant shall be entitled to a Jfteen percent density increase above the otherwise maximum

allowable residential density for the entire development calculated as follows:

Land Donation

Percentage Low Income
Percentage Density Bonus
Units

10% 15%

11% 16%

12% 17%

13% 18%

14% 19%

15% 20%

16% 21%

17% 22%

18% 23%

19% 24%

20% 25%

21% 26%

22% 27%

23% 28%

24% 29%

25% 30%

26% 31%

27% 32%

28% 33%

Land Donation

Percentage Low Income
Percentage Density Bonus
Units

29% 34%

30% 35%

1. Nothing in this chapter shall be construed to enlarge or diminish the authority of the City to require a

developer to donate land as a condition of development.

2. The Density Bonus for land dedication shall be in addition to any other Density Bonus earned pursuant

to this section, up to a maximum combined increased density of thirty-Jve percent above the otherwise

maximum allowable residential density for the entire development.

3. An applicant donating land shall be eligible for the increased Density Bonus described in this Section if all

the following conditions are met:

a. The applicant donates and transfers the land to the City, or to a housing developer approved by the

City, no later than the date of approval of the City of the Jnal subdivision map, parcel map, or Housing

Development Application for the proposed Housing Development seeking the Density Bonus.

b. The developable acreage and zoning classiJcation of the land being transferred are suKcient to

permit construction of units aLordable to Very Low Income Households in an amount not less than ten

percent of the number of residential units of the proposed Housing Development seeking the Density

Bonus.

c. The land proposed to be donated to the City:

i) is at least one acre in size or suKcient size to permit development of at least 40 residential

units; and

ii) has the appropriate General Plan designation and is appropriately zoned for development at

the density described in paragraph (3) of subsection (c) of Government Code section 65583.2 and

successor statutes; and

iii) is or will be served by adequate public facilities and infrastructure; and

iv) is donated no later than the date of approval of the Jnal subdivision map, parcel map or

Housing Development application seeking a Density Bonus and has all of the permits and approvals,

other than building permits, necessary for the development of the Very Low Income housing units

on the transferred land; and

v) is within the boundary of the proposed development or within one-quarter mile of the

boundary of the proposed development; and

vi) has a proposed source of funding for the very low income units prior to the approval of the

Jnal subdivision map, parcel map, or Housing Development application seeking the Density Bonus.

A. Restricted ALordable Units shall be constructed concurrently with Non-Restricted Units unless both the City

and the applicant agree within the Density Bonus Housing Agreement to an alternative schedule for development.

B. Restricted ALordable Units shall remain restricted and aLordable for a period of 30 years. The City may

require a longer period of time if required by the construction or mortgage Jnancing assistance program,

mortgage insurance program, or rental subsidy program.

C. In determining the maximum ALordable Rent or ALordable Sales Price of Restricted ALordable Units, the

presumed household size as set forth in the City’s Housing Program shall be used, unless the Housing

Development is subject to diLerent assumptions imposed by other federal or state regulations.

D. Restricted ALordable Units shall be built on-site and be dispersed within the Housing Development, except as

permitted in subsection E of this Section. The number of bedrooms of the Restricted ALordable Units shall be

equivalent to the bedroom mix of the Non-Restricted Units in the Housing Development; except that the applicant

may include a higher proportion of Restricted ALordable Units with more bedrooms. The design, appearance and

general quality of the Restricted ALordable Units shall be comparable and compatible with the design of the Non-

Restricted Units in the Development. The Development shall comply with all applicable Development Standards,

except those which may be modiJed as provided by this chapter.

E. Circumstances may arise in which the public interest would be served by allowing some or all of the

Restricted ALordable Units associated with one Housing Development to be produced and operated at an

alternative development site. Where the applicant and the City so agree, the resulting linked developments shall

be considered a single development for purposes of this chapter. Under these circumstances, the applicant shall

be subject to the same requirements of this chapter for the Restricted ALordable Units to be provided on the

alternative site.

F. A Density Bonus Housing Agreement, as described in Section 27.090, shall be made a condition of the

discretionary permits for all Developments subject to this chapter. The Density Bonus Housing Agreement shall be

recorded as a deed restriction on the parcel or parcels on which the Restricted ALordable Units will be

constructed.

A. A Housing Development meeting the requirements of Sections 27.030, 27.040, and 27.050 above and

including a Child Care Center that will be located on the premises of, as part of, or adjacent to, such a Housing

Development shall receive either of the following:

1. An additional Density Bonus in an amount of square feet of residential space that is equal to or greater

than the amount of square feet in the Child Care Center; or

2. An additional Incentive or Concession pursuant to Section 27.070 which results in an identiJable cost

reduction or avoidance.

B. When a Housing Development is providing a Child Care Center in accordance with this chapter, then the

project conditions of approval shall require that:

1. The Child Care Center care shall remain in operation for a period of time that is as long as or longer than

the period of time during which the aLordable units are required to remain aLordable; and

2. Of the children who attend the Child Care Center, the children of Very Low Income Households, Lower

Income Households, or persons or families of Moderate Income shall equal a percentage that is equal to or

greater than the percentage of aLordable units that are required pursuant to Section 27.040.

C. The City shall not be required to provide a Density Bonus or Incentive or Concession for a Child Care Center if

it makes a written Jnding, based upon substantial evidence, that the City has adequate Child Care Centers.

A. Subject to subsection B of this Section, the City shall provide a Concession or Incentive, for qualiJed Housing

Developments, upon the written request of an applicant. The number of Concessions or Incentives provided shall

be as follows:

1. For a Housing Development that provides either 5% of the units aLordable to Very Low income

households, or 10% of the units aLordable to Lower income households, the developer is entitled to one

Concession or Incentive.

2. When the number of aLordable units is increased to 10% Very Low income units, or 20% Lower income

units, the developer is entitled to two Concessions or Incentives.

3. When the number of aLordable units is increased to 15% Very Low income, or 30% Lower income, the

number of Concessions or Incentives is increased to three.

B. The City may grant any one of the following as a Concession or Incentive:

1. A waiver or modiJcation of site development standards or a modiJcation of zoning code or architectural

design requirements. These include one or more of the following (each item below is considered a

Concession or Incentive):

a. Reduced minimum lot sizes and/or dimensions.

b. Reduced minimum lot setbacks

c. Reduced minimum outdoor and/or private outdoor living area.

d. Increased maximum lot coverage

e. Increased maximum building height and/or stories.

f. Reduced on-site parking standards, including the number or size of spaces and garage

requirements.

g. Reduced minimum building separation requirements.

h. Reduced street standards, e.g., reduced minimum street widths.

2. Approval of mixed-use zoning in conjunction with the housing project if commercial, oKce, industrial, or

other land uses will reduce the cost of the housing development and if the commercial, oKce, 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.

3. Other Incentives or Concessions proposed by the developer or the City which result in identiJable cost

reductions or avoidance.

C. Upon request by the applicant, the City shall not require a vehicular parking ratio, inclusive of handicapped

and guest parking, that exceeds the following:

1. Zero to one bedrooms: one onsite parking space.

2. Two to three bedrooms: two onsite parking spaces.

3. Four and more bedrooms: two and one-half parking spaces.

If the total number of parking spaces required for a Housing Development is other than a whole number, the

number shall be rounded up to the next whole number. For purposes of this subsection, a Housing Development

may provide onsite parking through tandem parking or uncovered parking, but not through on-street parking.

D. The City shall grant Incentive(s) or Concession(s) requested by the applicant unless the City can make a

written Jnding, based upon substantial evidence, of any of the following:

1. The Incentive or Concession is not required in order to provide for aLordable housing to Very Low, Low,

or Moderate Income Households.

2. The Incentive or Concession would have a speciJc adverse impact, as deJned in paragraph (2) of

subdivision (d) of Section 65589.5 of the California Government Code, upon public health and safety or

physical environment or any real property that is listed on the California Register of Historical Resources and

for which the City determines there is no feasible method to satisfactorily mitigate or avoid the speciJc

adverse impact without rendering the Housing Development unaLordable to Very Low, Low, and/or

Moderate Income Households.

3. The Incentive or Concession would be contrary to state or federal law.

A. An application for a Density Bonus, Incentive or Concession shall be made as follows:

1. An application for a density bonus, incentive, concession, waiver, modiJcation or revised standard shall

be submitted with the Jrst application for a permit for a Housing Development and shall be processed

concurrently with those permits. The application shall be on a form prescribed by the Community

Development Director and shall include the following information:

a. A brief description of the proposed Housing Development, including the total number of dwelling

units, Restricted ALordable Units, and Density Bonus Units proposed.

b. The zoning and general plan designations and assessor’s parcel number(s) of the project site, and a

description of any Density Bonus, Incentive, or Concession, requested.

c. A vicinity map and preliminary site plan, drawn to scale, including building footprints, driveway and

parking layout.

d. If a Concession or Incentive is requested, the application shall provide evidence as to why the

Concession or Incentive is necessary to provide the Restricted ALordable Units in accordance with

Section 27.070 of this Chapter. Such evidence shall include, but is not limited to an explanation as to the

actual cost reduction achieved through the concession or incentive and how the cost reduction allows

the applicant to provide the Restricted ALordable Units, and any supporting documentation.

e. Level of aLordability of the Restricted ALordable Units and proposed method to ensure

aLordability.

f. If a Density Bonus or Concession or Incentive is requested for a land donation, the application shall

show the location of the land to be dedicated, provide proof of site control, and provide evidence that all

of the requirements and each of the Jndings included in Government Code Section 65915(g) and Section

27.040(F) can be made.

2. In accordance with State law, neither the granting of a Concession or Incentive, nor the granting of a

Density Bonus, shall be interpreted, in and of itself, to require a general plan amendment, zoning change,

variance, or other discretionary approval.

3. This Chapter implements State Density Bonus Law. Any Density Bonus, Incentive or Concession sought by

an Applicant shall be made pursuant to this chapter and may not be combined with similar requests under

State Density Bonus law.

A. Applicants for a density bonus, incentive or concession shall enter into a density bonus housing agreement

(agreement) with the city, approved by the city council.

B. Following execution of the agreement by all parties, the completed agreement shall be recorded and the

conditions Jled and recorded on the parcel to be developed and/or an alternative site for the proposed housing

development, if the housing development is oL site.

C. The agreement shall be processed concurrently with the associated entitlements, but approval of those

entitlements may be approved prior to and conditioned upon city council approval of the agreement and

subsequent recordation.

D. The agreement shall run with land to be developed and/or the alternative site for the proposed housing

development and be binding on all future owners and successors in interest and shall include, at a minimum, the

following:

1. The total number of units approved for the development, including the number of restricted aLordable

units.

2. A description of the household income group to be accommodated by the restricted aLordable units,

and the standards for determining the corresponding aLordable rent or aLordable sales price.

3. The proposed location, dwelling unit sizes (square feet), and number of bedrooms of the restricted

aLordable units.

4. Term of use restrictions for restricted aLordable units of at least 30 years for low and very low units.

5. A schedule for completion and occupancy of restricted aLordable units.

6. A description of any concession or incentive being provided by the city.

7. A description for remedies of breach of the agreement by either party (the city may identify tenants or

qualiJed purchasers as third-party beneJciaries under the agreement).

8. Other provisions to ensure implementation and compliance with this chapter.

E. In the case of for-sale housing developments, the density bonus housing agreement shall provide for the

following conditions governing the initial sale and use of restricted aLordable units during the applicable use

restriction period:

1. Restricted aLordable units shall, upon initial sale, be sold to eligible moderate income households at an

aLordable sales price and housing cost, or to qualiJed residents (i.e., maintained as senior citizen housing) as

deJned by this chapter.

2. Restricted aLordable unit shall be initially owner-occupied by eligible moderate income households or by

qualiJed residents in the case of senior citizen housing.

3. The initial purchaser of each restricted aLordable unit shall execute an instrument or agreement

approved by the city restricting the sale of the restricted aLordable unit in accordance with this chapter

during the applicable use restriction period. Such instrument or agreement shall be recorded against the

parcel containing the restricted aLordable unit and shall contain such provisions as the city may require

ensuring continued compliance with this chapter and the state density bonus law.

F. In the case of rental housing developments, the density bonus housing agreement shall provide for the

following conditions governing the use of restricted aLordable units during the use restriction period:

1. The rules and procedures for qualifying tenants, establishing aLordable rent, Jlling vacancies, and

maintaining restricted aLordable units for qualiJed tenants.

2. Provisions requiring owners to verify tenant incomes and maintain books and records to demonstrate

compliance with this chapter.

3. Provisions requiring owners to submit an annual report to the city, which includes the name, address,

and income of each person occupying restricted aLordable units, and which identiJes the bedroom size and

monthly rent or cost of each restricted aLordable unit. (Ord. 2696 § 2, 2019.)

The Petaluma Implementing Zoning Ordinance is current through Ordinance 2907, passed September 8,

Disclaimer: The city clerk’s oKce has the oKcial version of the Petaluma Implementing Zoning Ordinance. Users

should contact the city clerk’s oKce for ordinances passed subsequent to the ordinance cited above.

City Website: cityofpetaluma.net

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