Pismo Beach Municipal Code Ch. 17.26 Inclusionary Housing Requirements and Affordable Housing Incentives

The purpose and intent of this chapter is to promote the public welfare, by establishing inclusionary housing requirements and standards identified in Section 17.26.020 (Inclusionary Housing Requirements) and increasing the production and availability of affordable housing units, which assists in implementing the housing element of the general plan. In addition, this chapter offers bonuses and other incentives to developers for providing housing that is affordable to the types of households and qualifying residents identified in Section 17.26.130 (Eligibility for Bonus and Incentives). In establishing these inclusionary housing requirements and standards, and offering these bonuses and other incentives, this chapter is intended to implement the requirements of State law (Government Code Sections 65302, 65913 and 65915, et seq.) as they may be amended from time to time. (Ord. 00-03 § 2 (Exh. 1 (part)), 2000)

A. Affordable/Affordable Housing. Housing which can be purchased or rented by a household with very low, low or moderate income.

B. Affordable Housing Agreement. A written agreement between the developer, city and possibly additional parties which specifies the terms and under which inclusionary housing requirements are to be met.

C. Affordable Housing Fund. A fund established and administered by the city, containing in-lieu fees and other assets held and used exclusively to increase and improve the supply of affordable housing.

D. Affordable Housing Project. A development project in which one hundred percent of the dwellings to be built will be sold or rented in conformity with the city's inclusionary housing requirements.

E. Affordable Housing Unit. A dwelling or dwelling unit which is built under the provisions of Chapter 17.26, and which meets the city's inclusionary housing requirements as described in Section 17.26.020 of Chapter 17.26 of the city's Zoning Code.

F. Building Valuation. The total value of all construction work for which a permit is required, as determined by the building official using the Uniform Building Code.

G. Commercial Project. A development project involving primarily non-residential uses, including retail, office, service commercial, visitor serving commercial, hotel, light industrial, and manufacturing uses, as detailed in the Zoning Code.

H. Density Bonus. A density increase of up to twenty-five percent over the otherwise maximum allowable residential density under the Zoning Code and land use element of the General Plan as of the date of application by the developer to the city, as provided by Government Code Section 65915(f).

I. Development Project. An activity for which a subdivision map or construction permit is required, including new buildings and building additions or remodels, but not including changes in ownership, occupancy, management or use.

J. Dwelling Unit Dedication Trust. A trust established and administered by the city, consisting of existing dwelling units irrevocably dedicated, and used exclusively to increase and improve the supply of affordable housing.

K. Inclusionary Housing Requirements. The requirements set forth in Sections 17.26.070--17.26.120 of Chapter 17.26 of the city's Zoning Code.

L. In-Lieu Fee. A fee paid to the city as an alternative to the production of affordable housing to be used in the acquisition, construction or rehabilitation of affordable housing.

M. Lower/Lower Income Households. As defined in Health and Safety Code Section 50079.5, provided the income of such persons and families shall not exceed eighty percent of the median income of San Luis Obispo County, adjusted for family size and revised annually.

N. Market Value. The highest price a willing buyer would pay and a price a willing seller would accept, both being fully informed and in an open market, as determined by an appraiser or other qualified professional.

O. Moderate/Moderate Income Households. Those persons and families whose incomes exceed eighty percent, but are less than, or equal to, one hundred-twenty percent of the median income of san Luis Obispo County, adjusted for family size and revised annually.

P. Real Property. Land and improvements, if any, including anything permanently affixed to the land, such as buildings, walls, fences, and paved areas.

Q. Real Property Dedication Trust. A trust established and administered by the city, consisting of real property irrevocably dedicated, and used exclusively to increase and improve the supply of affordable housing.

R. Residential Project. A development project which results in the subdivision of land and/or the construction or conversion of dwellings, including, but not limited to single family detached homes, apartments, condominiums, live/work studios, mobile homes, and group housing.

S. Very Low/Very Low Income Households. As defined in Health and Safety Code Section 50105, provided the income of such persons and families shall not exceed fifty percent of the median income of San Luis Obispo County, adjusted for family size and revised annually. (Ord. 00-03 § 2 (Exh. 1 (part)), 2000)

The provisions of this chapter shall apply to all new residential and commercial projects within, and to be annexed to, the city.

A. Methods of Meeting Inclusionary Housing Requirements. New development projects shall satisfy the inclusionary housing requirement, as specified in Section 17.26.022 contained herein. To meet the inclusionary housing requirements, the developer shall comply with one or more of the following methods:

1. Construct the required number of affordable housing units, as specified in this chapter; or

2. Pay an in-lieu fee as described in this chapter; or

3. Dedicate existing dwelling units for affordable housing equal to or greater than the equivalent value to the applicable in-lieu fee which would otherwise be required by this chapter and table; or

4. Dedicate real property for affordable housing equal to or greater than the equivalent value to the applicable in-lieu fee which would otherwise be required by this chapter; or

5. Use a combination of the above methods subject to the approval of the city council.

B. Inclusionary Housing Standards. Affordable housing units acquired or constructed must meet inclusionary housing requirements, and must be consistent with the affordability policies contained in the housing element of the general plan.

C. Concurrent Development. The required affordable housing units shall be acquired or constructed before, or concurrently with, market value dwelling units, unless the developer and the city council agree within an affordable housing agreement to an alternate development schedule. (Ord. 00-03 § 2 (Exh. 1 (part)), 2000)

The provisions of this chapter shall apply to the following types and numbers of development projects:

A. Residential Developments. Residential development shall provide housing as set out below.

Fraction units less than 0.5 shall be rounded down to the first whole number unit, and fractional units of 0.50 percent or greater shall be rounded up to the next higher number unit.

For residential projects consisting of custom built dwelling units which are to be constructed subsequently to the completion of the subdivision, building valuation shall be determined by using the average building permit value of five recently constructed comparable dwelling units. Under circumstances where recent construction values cannot be used, the average value of constructed dwelling units listed as property improvements on the assessor's roll shall be used in calculating in-lieu fees.

1. For each ten residential units provide one affordable unit; or

2. For five or more residential units provide in-lieu fees equal to or more than five percent of building permit value; or

3. For each ten residential units dedicate one used dwelling or real property equal to or more than the applicable in-lieu fee; or

4. A combination of the above methods subject to city council approval;

5. Projects which involve subdivision of residential lots only shall be required to either:

a. Dedicate a number of lots equal to ten percent of the total, or an equivalent land area, to the city for future development of low and moderate income housing; or

b. Pay in-lieu housing fees established by the city ordinance; or

c. A combination of the above methods subject to city council approval;

d. Residential projects in which the total development on the property is more than one unit but less than twenty units shall be required to either provide affordable units on the same percentage bases specified in item 1 or to pay in-lieu fees as established by city ordinance. If affordable units are to be provided, the city may permit those units to be developed elsewhere at other appropriate sites within the city.

e. The percentages of this housing set aside shall apply to the total development project and be proportionally included in annual phasing.

B. Commercial Developments in the City and for Annexed Properties Designated for Commercial Use. Commercial developments in the City or to be annexed shall:

1. For each five thousand sq.ft. of commercial area, provide one affordable unit; or

2. For a commercial building five thousand sq.ft. or greater, provide in-lieu fees equal to or more than two percent of building permit value; or

3. For each five thousand sq.ft. of commercial building provide one used dwelling or real property equal to the value of, or more than, the applicable in-lieu fee; or

4. A combination of the above methods subject to city council approval. (Ord. 00-03 § 2 (Exh. 1 (part)), 2000)

The provisions of this chapter shall not apply to the following types of development projects:

A. Residential projects consisting of four or less lots or new dwelling units;

B. New commercial projects consisting of less than five thousand square feet of gross floor area;

C. Residential and commercial building additions, repairs or remodels, provided that such work does not increase the number of existing dwelling units in a residential project by five or more units or result in an increase in gross floor area of five thousand square feet or more in a commercial project;

D. Residential conversions of less than ten dwelling units to condominiums within any five-year period;

E. Commercial condominium conversions which do not result in the creation of new spaces exceeding five thousand square feet;

F. Affordable housing projects;

G. Emergency projects, or projects which the city council determines are necessary to protect public health and safety;

H. Development projects which the city council determines in its sole discretion are essentially non-commercial and non-residential in nature, which provide educational, social or related services to the community and which are proposed by public agencies, foundations and other similar organizations;

I. Projects which replace or restore a structure damaged or destroyed by fire, flood, earthquake or other disaster. Application for a new replacement structure(s) shall be made within three years of date of said disaster;

J. Approved projects for which a construction permit was issued prior to the effective date of this chapter and which continue to have unexpired permits. (Ord. 00-03 § 2 (Exh. 1 (part)), 2000)

A. Affordable Housing Unit Number Determination. In determining the number of affordable housing units required to be constructed pursuant to Section 17.26.022. Residential projects phased over time, shall meet the inclusionary housing requirements cumulatively. The first development phase shall be required to meet the inclusionary housing requirements based upon the number of affordable housing units in that phase. Each additional development phase shall be required to meet the inclusionary housing requirements for all development phase approve, less the number of affordable housing units already constructed as required by this chapter and Section 17.26.022.

B. Timing Regarding Inclusionary Housing Requirements. The inclusionary housing requirements contained in this chapter applicable to the construction of affordable housing units shall be satisfied prior to the following:

• 1. The issuance of a certificate of occupancy for the first unit in a building; or
• 2. The first building in a complex to be constructed or remodeled; or
• 3. Final map approval, for subdivisions; or
• 4. Building permit issuance, for projects for which a certificate of occupancy is not issued; or

5. As otherwise agreed to by the city council as part of a tentative map, rezoning, conditional use permit or other development approval. (Ord. 00-03 § 2 (Exh. 1 (part)), 2000)

A. Payment of In-Lieu Fee. As an alternative to constructing a required number of affordable housing units, the developer may, at his/her discretion, choose to pay an in-lieu Fee to the city to meet the inclusionary housing requirements.

B. Amount and Method of Paying In-Lieu Fee. The dollar amount and method of payment of an in-lieu fee shall be as described in Section 17.26.022.

C. Timing Regarding Inclusionary Housing Requirements. The in-lieu fee shall be paid, and other requirements met prior to the following, as decided by the community development director:

• 1. The release of occupancy of the first dwelling within a residential development; or
• 2. The final subdivision map approval, for residential subdivisions to be built out by others; or
• 3. Occupancy for new commercial buildings or remodels; or
• 4. Building permit issuance, for projects for which a certificate of occupancy is not issued; or

5. As otherwise agreed to by written agreement between the developer and the city, with the approval of the community development director.

D. Affordable Housing Fund. An in-lieu fee paid and collected pursuant to this chapter shall be deposited into an affordable housing fund. The affordable housing fund shall be administered by the city's finance director, and shall be used exclusively to provide funding for the provision of affordable housing and for reasonable costs associated with the development of affordable housing, at the discretion of the city council. (Ord. 00-03 § 2 (Exh. 1 (part)), 2000)

A. Irrevocable Offer to Dedicate Dwelling Units. As an alternative to the construction of a required number of affordable housing units or paying an in-lieu fee to the city to meet the inclusionary housing requirements, the developer may make an irrevocable offer to dedicate existing dwelling units located within three miles of the development project within the city limits equal to, or greater in value than the applicable in-lieu fee which would otherwise be required pursuant to Section 17.26.022. The existing dwelling unit or units shall be dedicated to the city or to the housing provider designated by the city. Existing dwelling units must comply with all applicable building codes before they are accepted for dedication. In considering the dedication of dwelling units, the city council must find that converted affordable housing units will provide equal or greater public benefit than the construction of affordable housing units or the value of in-lieu fees. The city council shall consider the following criteria when making the necessary findings:

1. Valuation of the acquired existing dwelling units to be dedicated relative to other methods of meeting the inclusionary housing requirements; and

2. Feasibility of conversion of the acquired existing dwelling units to affordable housing units, including general plan consistency, and availability of infrastructure.

B. Existing Dwelling Unit Valuation. The valuation of the existing dwelling units shall be determined by the community development director, based upon an appraisal made by a qualified appraiser chosen by the director.

C. Agreement/Timing Regarding Dwelling Unit Dedication. The dwelling unit dedication shall be by deed or other instrument acceptable to the city and shall be completed by recordation with the Recorder of the County of San Luis Obispo prior to the following:

• 1. The occupancy release of the first residential unit or commercial building in the development project; or
• 2. Prior to recordation of a final map for a residential subdivision to be built out by others; or
• 3. Building permit issuance for a project for which a certificate of occupancy is not issued; or
• 4. As otherwise provided by written agreement between the developer and the city.

D. Dwelling Unit Dedication Trust. Existing dwelling units irrevocably offered for dedication pursuant to this chapter, shall be phased into a dwelling unit dedication trust. The dwelling unit dedication trust shall be administered by the city's finance director, or a designated housing agent approved by the city council, and shall be used exclusively to provide affordable housing and for reasonable costs associated with the development of affordable housing, at the discretion of the city council. Toward this goal, the existing dwelling units may be sold, leased, traded, developed or improved.

E. Conversion of Rental Units. Conversion any rental units to ownership units occurring during the period the rental controls are in effect will require the percentage of controlled units to be offered for sale at a cost affordable to the eligible moderate income household, and resale controlled by the city or housing authority. This policy applies to all property for which development application or specific plan has not been previously approved at the time of adoption of the housing element.

F. Cost of Dedication. Costs associated with the dedication, including, but not limited to appraisal, title insurance, transfer recordation and related costs, shall be borne by the developer. (Ord. 00-03 § 2 (Exh. 1 (part)), 2000)

A. Irrevocable Offer to Dedicate Real Property. As an alternative to the construction of a required number of affordable housing units or paying an in-lieu fee to the city to meet the inclusionary housing requirements, the developer may make an irrevocable offer to dedicate real property within the city limits equal to or greater in value than the applicable in-lieu fee which would otherwise be required pursuant to Section 17.26.022. The property shall be dedicated to the city or to a housing provider designated by the city. In considering an offer to dedicate real property, the city council must find that the dedication of real property will provide equal or greater public benefit than the construction of affordable housing units or paying in-lieu fees. The city council shall consider the following criteria in making the necessary findings:

1. Valuation of the land and/or improvements to be dedicated relative to other methods of meeting the inclusionary housing requirements;

2. Suitability of the land and/or improvements for housing, including general plan conformity, size, shape, topography, and location; and

3. Feasibility of developing affordable housing, including general plan consistency, and availability of infrastructure.

B. Real Property Valuation. The valuation of real property offered shall be determined by the community development director, based upon an appraisal made by a qualified appraiser chosen by the director.

C. Agreement/Timing Regarding Real Property Dedication. The real property dedication shall be by deed or other instrument acceptable to the city, and shall be completed by recordation with the Recorder of the County of San Luis Obispo prior to the following:

• 1. The occupancy release of the first residential unit or commercial building in the development project; or
• 2. Prior to recordation of a final map for a residential subdivision to be built out by others; or
• 3. Building permit issuance for projects for which a certificate of occupancy is not issued; or
• 4. As otherwise provided by written agreement between the developer and the city.

D. Real Property Dedication Trust. Real property irrevocably offered for dedication pursuant to this chapter shall be placed into a real property dedication trust. The real property dedication trust shall be administered by the city's finance director or a designated housing agent approved by the city council, and shall be used exclusively to provide Affordable housing and for reasonable costs associated with the development of affordable housing, at the discretion of the city council toward this goal, the existing dwelling units may be sold, leased, traded, developed or improved.

E. Cost of Dedication. Costs associated with the dedication, including, but not limited to appraisal, title insurance and transfer, recordation and related costs, shall be borne by the developer. (Ord. 00-03 § 2 (Exh. 1 (part)), 2000)

A. Method of Application. An applicant proposing a development project for which affordable housing is required shall submit a statement with a standard planning application, describing the affordable housing project proposal. The developer's statement shall include the following:

1. A brief description of the proposal including the method chosen to meet the inclusionary housing requirements, the number, type and location of affordable housing units, the term of affordability, a preliminary calculation of in-lieu fees, or an offer of existing dwelling units or real property dedication;

2. A description of how the proposal meets the general plan policies and the inclusionary housing requirements;

3. Plans and other exhibits showing preliminary site layout, grading, building elevation, parking and other site features, and the location of the affordable housing units and, where applicable, the market value dwelling units;

4. A description of financial assistance requested. Such financial assistance could be in the form of a density bonus, reduced permit fees, exceptions to development standards, or any other incentives; and

5. Such other information which the community development director determines necessary to adequately evaluate the proposal.

B. Community Development Director Response. After receiving a developer's required statement with a standard planning application for a development project, the community development director shall respond to the applicant/developer's affordable housing proposal. The city's response shall identify the following:

1. The affordable housing proposal, issues and constraints;

2. The incentives which the community development director can support when making a recommendation to the decision-making body; and

3. The procedures that are required to be followed to comply with the inclusionary housing requirements. (Ord. 00-03 § 2 (Exh. 1 (part)), 2000)

A. Submittal of Affordable Housing Agreement. Applicants for an affordable housing project subject to this chapter shall, as a condition of development approval, prepare and submit a proposed affordable housing agreement for approval by the community development director and city attorney. The draft agreement shall comply with these inclusionary housing requirements, city policies and standards, and applicable codes. Following approval and signing of the affordable housing agreement by the parties, the final agreement shall be recorded and relevant terms and conditions shall be recorded as a deed restriction on those lots or affordable housing units subject to the inclusionary housing requirements. The affordable housing agreement shall be binding on all future owners and successors in interest.

B. Agreement Regarding Construction of Affordable Housing. For development projects meeting their inclusionary housing requirements through the construction of affordable housing units, the affordable housing agreement shall specify at least the following:

1. The number and location of the affordable housing units;

2. The size (square footage), number of bedrooms, and design of the affordable housing units;

• 3. The terms of affordability;
• 4. The schedule for construction of the affordable housing units;
• 5. The incentives or other financial assistance to be provided by the city;

6. Where applicable, the procedures to be used for qualifying tenants or buyers, setting rental/sales costs, renting or selling units, filling vacancies, and managing the units; and

7. Such other terms and conditions requested by the city.

C. Agreement Regarding Payment of In-Lieu Fees. An affordable housing agreement or agreements for existing dwelling unit or real property dedication shall not be required for development projects which meet their inclusionary housing requirements through the payment of in-lieu fees.

D. Agreements for Dwelling Unit or Real Property Dedication. For development projects meeting their inclusionary housing requirements through existing dwelling unit or real property dedication, the affordable housing agreement shall specify the following: 1. The method of conveyance, schedule, and appraisal value of the proposed dedication;

2. The calculation of affordable housing in-lieu fees otherwise applicable (pursuant to Section 17.26.022) to the development project at the time of recordation;

3. Provide title report and insurance;

4. The description of the location, condition, improvements, and other relevant factors applying to the real property; and

5. Such other information required by the city. (Ord. 00-03 § 2 (Exh. 1 (part)), 2000)

A. Eligibility. Only moderate income households, low or lower income households, shall be eligible to rent, purchase or occupy affordable housing units developed or funded in compliance with the inclusionary housing requirements. For sale of affordable dwelling units, the affordable housing units shall be occupied by the owner for the entire term of the affordable housing agreement.

B. Eligibility Screening. The city, or other approved housing provider designated by the city shall screen prospective renters or buyers of the affordable housing units. Renters or buyers of inclusionary dwelling units shall enter into an agreement with the city, its housing authority or other approved housing provider to comply with the inclusionary housing requirements. Priority for purchase or rent of affordable housing units shall be offered to applicants who have been employed in or have been residents of the city for the previous two years and are first time home buyers. (Ord. 00-03 § 2 (Exh. 1 (part)), 2000)

Developers of affordable housing units for sale shall specify the inclusionary housing requirements to be applied. The developer shall choose to either:

1. Enter into an affordable housing agreement to ensure that affordability is maintained for a period of not less than thirty years, or as otherwise required by State law (affordable housing units shall also be subject to a thirty-year term of affordability); or

2. Participate in a shared equity purchase program, as described in Section 17.26.120. (Ord. 00-03 § 2 (Exh. 1 (part)), 2000)

Under the shared equity purchase program, the qualified buyer of a designated affordable housing unit shall enter into a shared equity agreement with the city. Said agreement shall be recorded as a second trust deed against the purchased property, at no interest. It shall secure the city's equity share as calculated by the community development director, which shall be the decimal percentage of the real property's value resulting from the following:

A. The difference between the real property's market value and the actual price paid by the homeowner, divided by the real property's market value; or

B. When applicable, the amount of subsidy provided by the city to the homeowner to purchase the real property, divided by the real property's market value.

Upon sale, the city's equity share shall be repaid to the city from the proceeds of the sale, at the close of escrow. (Ord. 00-03 § 2 (Exh. 1 (part)), 2000)

In order to be eligible for a density bonus and other incentives as provided by this chapter, a proposed residential project shall:

A. Consist of five or more rental units;

B. Be designed and constructed so that at least:

1. Twenty percent of the total number of proposed units are for lower income households, as defined in Health and Safety Code Section 50079.5;

2. Ten percent of the total number of proposed units are for very low income households, as defined in Health and Safety Code Section 50105; or

3. Fifty percent of the total number of proposed units are for qualifying residents (senior citizens) as defined by Section 51.2 of the Civil Code (senior Citizens of any income level); and

C. Satisfy all other applicable provisions of this Zoning Code. (Ord. 00-03 § 2 (Exh. 1 (part)), 2000)

A residential project that satisfies all applicable provisions of this section shall be entitled to the following density bonus and other incentives. If a density bonus and/or other incentives cannot be accommodated on a site due to strict compliance with the provisions of this Zoning Code, the planning commission is hereby authorized to waive or modify development standards as necessary to accommodate all density bonus units and other incentives to which the development is entitled.

A. Density Bonus. The density bonus allowed by this section shall consist of a twenty-five percent increase in the number of dwelling units normally allowed by the zoning district applicable to the site as of the date of the project land use permit application. No single project shall be granted more than one density bonus in compliance with this section.

B. Other Incentives. A qualifying housing development shall be entitled to at least one of the concessions or incentives identified by Government Code Section 65915(b). The commission shall approve one or more of the above incentives, notwithstanding the other provisions of this chapter, unless it makes a written finding that the additional concession or incentive is not required in order for rents for the targeted units to be set in compliance with Government Code Section 6591 5(c).

1. A reduction in the site development standards of this Zoning Code, including, but not limited to setback, coverage, and/or parking requirements;

2. Approval of mixed-use zoning in conjunction with the housing project if non-residential land uses will reduce the cost of the housing project, and the non-residential land uses are compatible with the housing project and surrounding development; or

3. Other regulatory incentives or concessions proposed by the developer or the city that will result in identifiable cost reductions. (Ord. 00-03 § 2 (Exh. 1 (part)), 2000)

The land use permit application for the residential project shall include the procedures proposed by the developer to maintain the continued affordability of all lower income density bonus units as follows:

A. Projects with City Funding. Projects receiving a direct financial contribution or other financial incentives from the city, or a density bonus and at least one other concession or incentive as provided by subsection (B) of Section 17.26.140, shall maintain the availability of all lower income density bonus units for a minimum of thirty years, as required by Government Code Sections 6591 5(c) and 65916; or

B. Private Projects--Density Bonus Only. Privately-financed projects that receive a density bonus as the only incentive from the city shall maintain the availability of lower income density bonus units for a minimum of fifteen years. (Ord. 00-03 § 2 (Exh. 1 (part)), 2000)

As required by State law (Government Code Section 65915(g)), the location of density bonus units within the qualifying housing project may be at the discretion of the developer, and need not be in the same area of the project where the units for the lower income households are located. However, units for lower income households shall be reasonably dispersed throughout the project where feasible, shall contain on average the same number of bedrooms as the other units in the project, and shall be compatible with the design of the other units in terms of appearance, materials, and finished quality. (Ord. 00-03 § 2 (Exh. 1 (part)), 2000)

Proposed density bonus requests shall be included as part of a conditional use permit application for the residential project, and shall be reviewed and approved as follows:

A. Initial Review of Density Bonus Request. The community development director shall notify the developer within ninety days of the filing of the project land use permit application of whether the project qualifies for the additional density;

B. Criteria to be Considered. Criteria to be considered in analyzing the requested density bonus will include the availability and capacity of infrastructure (water, sewer, roads and similar facilities), and affected schools to accommodate the additional density;

C. Findings for Approval. In addition to the findings required for the approval of land use permits under Chapter 17.42 (Permit Approval or Disapproval) the approval of the density bonus by the planning commission shall also require the following special findings:

1. The project will not be a hazard or nuisance to the community at large or establish a use or development inconsistent with the goals and policies of the general plan;

2. The number of dwellings approved by the land use permit can be accommodated by existing and planned infrastructure capacities;

3. Adequate evidence exists to indicate that the development of the property in compliance with the permit will result in the provision of affordable housing in a manner consistent with the purpose and intent of this section;

4. In the event that the city does not grant at least one financial concession or incentive as defined in Government Code Section 65915 in addition to the density bonus, that additional concessions or incentives are not necessary to ensure affordable housing costs as defined in Health and Safety Code Section 50052.5, or for the rents for the targeted units to be set as specified in Government Code Section 65915(c); and

5. There are sufficient provisions to guarantee that the units will remain affordable in the future.

D. Appeals. Any decision of the planning commission under this section maybe appealed to the city council pursuant to the provision of Chapter 17.54 (Appeals) of the ordinance. (Ord. 00-03 § 2 (Exh. 1 (part)), 2000)