San Fernando Municipal Code § 106-1127 Concessions and incentives

State density bonus law (Government Code § 65915), provides that local governments shall grant density bonus and regulatory concessions and incentives to developers of housing, child care facilities, or for donation of land for housing, where the developer agrees to construct a specified percentage of housing for lower income households, very low income households, moderate income households or qualifying residents.

(Ord. No. 1732, § 3(Exh. A), 5-5-2025)

(a) Minimum development requirements. Upon written request by an applicant, the community development director shall grant a density bonus and provide incentives or concessions as provided in this division when the applicant for the housing development agrees or proposes to construct a housing development, excluding any units permitted by the density bonus granted pursuant to this section that contains at least any one of the following:

(1) Lower income households. Ten percent of the total units of a housing development for lower income households.

(2) Very low income households. Five percent of the total units of a housing development for very low income households.

(3) Senior housing. A senior citizen housing development, unless prohibited by state and/or federal law.

(4) Common interest development. Ten percent of the total dwelling units in a common interest development for persons and families of moderate income, provided that all units in the development are offered to the public for purchase.

(b) Maximum development requirements. If an applicant exceeds the minimum percentages set forth in subsection (d), the applicant shall be entitled to an additional density bonus calculated as follows:

(1) Low income units. For each one percent increase above the ten percent of the percentage of units affordable to lower income households, the density bonus shall be increased by one and one-half percent up to a maximum of 35 percent.

(2) Very low income units. For each one percent increase above the five percent of the percentage of units affordable to very low income households, the density bonus shall be increased by two and one-half percent up to a maximum of 35 percent.

(3) Moderate income units. For each one percent increase above the ten percent of the percentage of units affordable to moderate income households, the density bonus shall be increased by one percent, up to a maximum of 35 percent.

(c) Density bonus calculation.

(1) Density bonus calculations resulting in fractional units shall be rounded up to the next whole number.

(2) Only the total units of a housing development shall be used to determine those units to be added as part of a density bonus.

(3) For the purpose of calculating a density bonus, the residential units shall be on contiguous sites that are the subject of one development application but need not be based upon individual subdivision maps or parcels.

(4) A density bonus may be selected from only one category, except in combination with a land donation or a child care facility, provided the total density bonus does not exceed 35 percent.

(5) The applicant may elect to accept a lesser percentage of density bonus.

(6) The density bonus shall be permitted in geographic areas of the housing development other than the areas where the units for the lower income households are located.

(d) Density bonus calculation table.

Note:

1. A senior citizen housing development is not required to be affordable in order to receive a density bonus. However, 100 percent of the units in the development (35 units minimum) must be restricted as senior housing.

(e) Sample calculation of a density bonus.

Note:

1. A senior citizen housing development is not required to be affordable in order to receive a density bonus. However, 100 percent of the units in the development (35 units minimum) must be restricted as senior housing.

(f) Land donation requirements. An applicant for a tentative map, parcel map or any other discretionary approval required to construct a residential development in the city shall receive a 15 percent density bonus above the otherwise maximum allowable residential density for the residential development when the applicant donates land to the city as provided in this section. This 15-percent bonus shall be in addition to any other density bonus provided for in this section, up to a total combined density bonus of 35-percent. Applicants are eligible for the 15-percent land donation density bonus if all of the following conditions are met:

(1) The applicant shall donate and transfer land to the city prior to approval of the final map or other discretionary approval required for the residential development.

(2) The transferred land shall have the appropriate acreage and zoning classification to permit development of affordable housing for very low income households in an amount not less than ten percent of the number of residential units of the proposed development.

(3) The transferred land shall be at least one acre or of sufficient size to permit development of at least 40 residential units, has the appropriate general plan designation, is appropriately zoned with appropriate development standards for development at the density described in Government Code § 65583.2(c)(3).

(4) The transferred land shall be served by adequate public facilities and infrastructure.

(5) The transferred land and the very low income units constructed shall have a deed restriction recorded with the county recorder, to ensure continued affordability of the units. The deed restriction must be recorded on the property at the time of transfer.

(6) The transferred land shall be conveyed in fee simple to the city or to a housing developer approved by the city.

(7) The transferred land shall be within the boundary of the proposed residential development, or no more than approximately one-quarter mile from the boundary of the qualified project, if the city so approves.

(8) No later than the date of approval of the final map or other discretionary approval required for the residential development the transferred land shall have 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.

(9) A proposed source of funding for the very low income units shall be identified not later than the date of the final map or other discretionary approval.

(g) Child care facility requirements.

(1) The city shall grant either of the following to a density bonus project that includes a child care facility located on the premises of, as part of, or adjacent to, the project:

a. An additional density bonus in an amount equivalent to or greater than the amount of the square footage of the childcare facility; or

b. An additional concession or incentive that contributes significantly to the economic feasibility of the construction of the child care facility.

(2) In order to receive the additional child care density bonus, the project must comply with the following requirements:

a. The child care facility will remain in operation for a period of time that is as long as, or longer, than the period of time during which the density bonus units are required to remain affordable.

b. Of the children who attend the child care facility, the percentage of children of very low income, lower income, or moderate income households shall be equal to, or greater than, the percentage of affordable units.

c. Notwithstanding any requirement of this section, the city shall not be required to provide a density bonus or concession for a child care facility if it finds, based upon substantial evidence, that the community already has adequate child care facilities.

(h) Condominium conversion.

(1) When an applicant for conversion of apartments to condominiums agrees to provide at least 33 percent of the total units of the proposed condominium to persons and families of low to moderate income or 15 percent of the total units of the proposed condominium to lower income households, and agrees to pay administrative costs incurred by the city pursuant to this section, the community development director shall either:

a. Grant a density bonus; or

b. Provide other incentives of equivalent financial value.

The community development director may place reasonable conditions on the granting of a density bonus or other incentives of equivalent financial value as appropriate, including, but not limited to, continued affordability of units to subsequent purchasers who are persons and families of low and moderate income or lower income households. For only this section, the following definitions apply:

c. Density bonus means an increase in units of 25 percent over the number of apartments to be provided within the existing structure or structures proposed for conversion.

d. Other incentives of equivalent financial value shall not require the city to provide cash transfer payments or other monetary compensation but may include the reduction or waiver of requirements which the city might otherwise apply as conditions of conversion approval.

(2) Proposal for subdivision map approvals. An applicant for approval to convert apartments to condominiums may submit a preliminary proposal to the community development department, for review by the community development director or his or her designee, prior to the submittal of any formal requests for subdivision map approvals. The city shall, within 90 days of receipt of a written proposal, notify the applicant in writing of the manner in which it will comply with this section.

(3) Ineligibility. An applicant shall be ineligible for a density bonus or other incentives under this section if the apartments proposed for conversion constitute a housing development for which a density bonus or other incentives were previously provided.

(4) Other requirements. Nothing shall require the city to approve a proposal to convert apartments to condominiums.

(Ord. No. 1732, § 3(Exh. A), 5-5-2025)

(a) Number of incentives/concessions. The applicant shall be entitled to receive the following number of incentives or concessions in subsection (b):

(b) Incentive/concession table.

Note:

1. AMI is an abbreviation for Los Angeles County Area Median Income

2. Child care facility: When a qualified project also includes a child care facility as described in section 106-1126(g), the applicant shall receive one additional incentive.

(c) Menu of incentives/concessions.

(1) Additional density provided the overall density bonus received for the entire residential development does not 35 percent.

(2) A reduction in site development standards, including:

a. Reduced minimum lot sizes and/or dimensions.

b. Reduced minimum lot setbacks.

c. Reduced minimum private and/or common outdoor open space.

d. Increased maximum building height (up to one additional story).

e. Reduced on-site parking standards in excess of standards set forth in section 106-1128 (parking study required).

(3) Tandem and uncovered parking allowed.

(4) Other regulatory incentives that result in identifiable, financially sufficient, and actual cost reductions.

(d) Evidence for concession and incentives. An applicant of a housing development may submit to the community development department a proposal for specific incentives or concessions for review by the community development director or his or her designee, and may request a meeting with the community development director or his or her designee.

(e) An applicant of a housing development may submit to the community development department a proposal for the waiver or reduction of development standards that will have the effect of physically precluding the construction of a development meeting the criteria of subsection (d) of section 106-1126 at the densities or with the concessions or incentives permitted by subsection (b) of section 106-1126 for review by the community development director or his or her designee, and may request a meeting with the community development director or his or her designee. A proposal for the waiver of development standards under this subsection shall neither reduce nor increase the number of incentives or concessions to which the applicant is entitled pursuant to subsection (b) of section 106-1126.

(f) If a meeting is requested, the community development director or his or her designee, shall meet with the applicant within 15 working days to discuss the proposal.

(g) When the community development director grants a density bonus, the community development director shall grant the additional concession or incentives requested by the applicant unless the community development director it makes a written finding, based upon substantial evidence of any the following conditions:

(1) The concession or incentive is not required in order to provide for affordable housing costs; or

(2) The concession or incentive would have a specific adverse impact, as defined in Government Code § 65589.5(d)(2), as may be amended, upon the public health and safety or the physical environment and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact without rendering the development unaffordable to low and moderate income households; or,

(3) The concession or incentive would have a specific adverse impact on any real property that is listed in the California Register of Historical Resources and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact without rendering the development unaffordable to low and moderate income households; or

(4) The concession or incentive would be contrary to state or federal law.

(Ord. No. 1732, § 3(Exh. A), 5-5-2025)

(a) Design requirements. Affordable units developed in conjunction with a market rate development shall be of similar design and quality as the market rate units. Exteriors and floor plans of affordable units shall be of similar quality to the market rate units.

(b) Location distribution requirements for affordable units. Affordable units shall be dispersed throughout the housing development rather than clustered in a single area or a few areas. Location of the affordable units within a housing development shall be reviewed and approved by the community development director.

(c) Parking standards. Unless the city's adopted parking standards will result in fewer parking spaces, the following maximum parking standards shall apply, inclusive of handicapped and guest parking, for the entire residential development:

Notes

1. A parking calculation resulting in a fraction shall be rounded up to the next whole number.

2. Parking standards provided in this subsection are inclusive of guest and handicapped parking.

3. A development may provide "onsite parking" through tandem parking or uncovered parking, but not through on-street parking.

(d) Other requirements. The granting of a density bonus shall not require a general plan amendment, zoning change, or other discretionary approval, and shall be processed in conjunction with the application of a housing development.

(Ord. No. 1732, § 3(Exh. A), 5-5-2025)

(a) Affordability requirement. An applicant shall agree to, and the city shall ensure the following:

(1) Continued affordability of all low and very low income units that qualified the applicant for the award of the density bonus for a minimum period of 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.

(2) Rents for the lower income density bonus units shall be set at an affordable rent as defined in Health and Safety Code § 50053. Prior to the rental of any affordable unit, the city or its designee, shall verify the eligibility of the prospective tenant. The owner shall maintain on file certifications by each household. Certifications shall be obtained immediately prior to initial occupancy by each household and annually thereafter, in the form provided by the city or its designee. The owner shall obtain updated forms for each household on request by the city, but in no event less frequently than once a year. The owner shall maintain complete, accurate and current records pertaining to the housing development and will permit any duly authorized representative of the city to inspect records pertaining to the affordable units and occupants of these units.

(3) The city may establish fees associated with the setting up and monitoring of affordable units.

(4) The owner shall submit an annual report to the city, on a form provided by the city. The report shall include for each affordable unit the rent, income, and family size of the household occupying the unit.

(5) Owner-occupied units shall be available at an affordable housing cost as defined in Health and Safety Code § 50052.5.

(6) Upon resale, the seller of the unit shall retain the value of any improvements, the down payment, and the seller's proportionate share of appreciation. The city shall recapture any initial subsidy and its proportionate share of appreciation, which shall be used within five years for any of the purposes described in Health and Safety Code § 33334.2(e) to promote home ownership.

(7) The owner shall provide to the city any additional information required by the city to ensure the long-term affordability of the affordable units by eligible households.

(b) Affordable housing agreement. Affordability shall be ensured by requiring that the applicant enter into an affordable housing agreement in accordance with this division, as approved by the city attorney. The affordable housing agreement shall be recorded by the applicant of a housing development with the county recorder.

(Ord. No. 1732, § 3(Exh. A), 5-5-2025)

(a) Application materials. In addition to the required application materials for the project, the applicant shall submit separate site plan(s) containing the following information:

(1) A brief description of the housing development, and a chart including the number of market-rate units and affordable units proposed, and the basis for the number of affordable units.

(2) The unit-mix, locations, floor plans and square footages, and a statement as to whether the housing development is an ownership or rental project.

(3) In the event the developer proposes a phased project, a phasing plan that provides for the timely development of the affordable units as the housing development is constructed.

(4) A detail of the specific concessions, incentives, waivers, or modifications being requested for the housing development.

(5) Any other information reasonably requested by the community development director to assist with the evaluation of the affordable housing plan and housing development.

(6) The affordable housing site plan shall be incorporated into all sets of plans used in application for building plan check and building permit issuance.

(Ord. No. 1732, § 3(Exh. A), 5-5-2025)

(a) The applicant, upon the community development director's written denial of a housing development, may appeal the decision of the community development director to the planning and preservation commission.

(b) If the planning and preservation commission upholds a denial issued by the community development director, the applicant may appeal the decision of the planning and preservation commission to the city council.

(c) An applicant shall file a written appeal of a decision for denial of a housing development issued by the community development director or planning and preservation commission pursuant to division 2 of article V of this chapter.

(Ord. No. 1732, § 3(Exh. A), 5-5-2025)