Chapter 18.64 — Density Bonus and Affordable Housing

Santa Clara Zoning Code · 2026-06 edition · ingested 2026-07-06 · Santa Clara

Sections

18.64.010 – Purpose and Applicability 18.64.020 – Eligibility for Bonus, Incentives, or Concessions 18.64.030 – Allowed Density Bonuses 18.64.040 – Allowed Incentives or Concessions 18.64.050 – Parking Requirements in Density Bonus Projects 18.64.060 – Bonus and Incentives for Development with Childcare Facilities 18.64.070 – Continued Availability 18.64.080 – Location and Type of Affordable Dwelling Units 18.64.090 – Processing of Bonus Requests 18.64.100 – Density Bonus Agreements 18.64.110 – Controls of Resale 18.64.120 – Judicial Relief, Waiver or Standards 18.64.130 – Mixed Use Density Bonuses 18.64.140 – Parking Relief for 100% Affordable Projects

18.64.010 – Purpose and Applicability

As required by Government Code Section 65915, this Chapter offers density bonuses, and incentives or concessions for the development of housing that is affordable to the types of households and qualifying residents identified in Section 18.64.020 (Eligibility for Bonus, Incentives, or Concessions), below. This Chapter is intended to implement the requirements of Government Code Section 65915 et seq. and the Housing Element of the General Plan.

18.64.020 – Eligibility for Bonus, Incentives, or Concessions

To be eligible for a density bonus, reduced parking ratios, and other incentives or concessions as provided by this Chapter, a proposed housing development shall comply with the following requirements and shall satisfy all other applicable provisions of this Zoning Code.

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  • Resident Requirements. Excluding any units allowed by the density bonus, the proposed housing development’s dwelling units, as defined in Health and Safety Code Section 50079.5, shall be one of the following types;

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  • Lower Income Households. Ten percent of the dwelling units are for lower income households, as defined in Health and Safety Code Section 50079.5;

  • Very Low-Income Households. Five percent of the dwelling units are for very low-income households, as defined in Health and Safety Code Section 50105;

  • Senior Citizen Housing Developments. The project is a senior citizen housing development as defined in Civil Code Sections 51.3 and 51.12, or is a mobile home park that limits residency based on age requirements for housing older persons in compliance with Civil Code Sections 798.76 or 799.5;

  • Moderate Income Households in a For-Sale Development. Ten percent of the dwelling units in a for-sale development are for persons and families of moderate income, as defined in Health and Safety Code Section 50093, provided that all units in the development are offered to the public for purchase;

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  • Other Identifiable Groups. Ten percent of the dwelling units in a housing development for transitional foster youth, as defined in Education Code Section 66025.9; disabled veterans, as defined in Government Code Section 18541; or, homeless persons, as defined in the Federal McKinney-Vento Homeless Assistance Act (42 U.S.C. Sec. 11301 et seq.). The dwelling units described in this Paragraph shall be provided to very low-income households, as defined in Health and Safety Code Section 50105;

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  • Student Housing. Twenty percent of the dwelling units are for lower income students in a student housing development, subject to the provisions specified in Subsection 18.64.030.A.6 (Bonus for Student Housing Development), below, and which meets the following requirements:

  • a. All units in the student housing development will be used exclusively for undergraduate, graduate, or professional students who are currently enrolled in at least six credit-hours, or who within the past six months were enrolled in at least six credithours, at an institution of higher education accredited by the Western Association of Schools and Colleges or the Accrediting Commission for Community and Junior Colleges. In order to be eligible under this Subparagraph, the developer shall, as a condition of receiving a Certificate of Occupancy, provide evidence to the City that the developer has done either of the following:

    - (b) entered into an operating agreement or master lease with one or more institutions of higher education for the institution(s) to occupy all units of the student housing development with students or recent former students from such institution(s). Such an operating agreement or master lease is not violated or breached if, in any subsequent year, there are not sufficient students enrolled or previously enrolled in an institution of higher education to fill all units in the student housing development; or 
    
    - (c) Established a system for confirming its renters' status as students to ensure that all units of the student housing development are occupied with students from an institution of higher education. 
    
    • b. The applicable units in the student housing development for lower income students will be used for, and occupied by, lower income students. For purposes of this clause, “lower income students” means students who have a household income and asset level that does not exceed the level for Cal Grant A or Cal Grant B award recipients as specified in subdivision (k) of Section 69432.7 of the Education Code. The eligibility of a student under this subparagraph shall be verified by an affidavit, award letter, or letter of eligibility provided by the institution of higher education that the student is enrolled in, or by the California Student Aid Commission that the student receives or is eligible for financial aid, including an institutional grant or fee waiver, from the college or university, the California Student Aid Commission, or the federal government;

    • c. The rent provided in the applicable units of the development for lower income students shall be calculated at 30 percent of 65 percent of the area median income for a singleroom occupancy unit type.

    • d. The development will provide priority for the applicable affordable units for lower income students experiencing homelessness. A homeless service provider, as defined in paragraph (3) of subdivision (d) of Section 103577 of the Health and Safety Code, or institution of higher education that has knowledge of a person’s homeless status may verify a person’s status as homeless for purposes of this Subparagraph.

    • e. No rental bed reserved for lower income students shall be tied to a specific bedroom. No property management policy shall prevent a lower income student from sharing a room or unit with a non-lower income student.

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  • 100 Percent Affordable Developments. One hundred percent of the total units, exclusive of a manager’s unit or units, are for lower-income households, as defined by Health and Safety Code Section 50079.5, except that up to 20 percent of the total units in the development may be for moderate-income households, as defined in Health and Safety Code Section 50053. For purposes of this subparagraph, “development” includes a shared housing building development;

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  • Condominium Conversions. A conversion of apartments to condominiums, where at least 33 percent of the proposed condominiums will be affordable to persons and families of low or moderate income, or 15 percent of the proposed condominiums will be affordable to lowerincome households;

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  • Housing with Childcare Facilities. A housing development that includes a childcare facility that meets the requirements set forth in section 18.64.060; or

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  • Land Donations. A housing development that will include a land donation to the City meeting the requirements specified in paragraph 12 of subsection A of section 18.64.030.

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  • Applicant Selection of Basis for Bonus. For purposes of calculating the amount of the density bonus in compliance with Section 18.64.030 (Allowed Density Bonuses), below, the applicant who requests a density bonus shall elect whether the bonus shall be awarded based on paragraphs 1 through 10 of Subsection A., above.

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  • Bonus Units Shall Not Qualify A Project. A density bonus granted in compliance with Section 18.60.030 (Allowed Density Bonuses), below, shall not be included when determining the number of dwelling units that are required by Subsection A., above.

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  • Minimum Project Size to Qualify for Density Bonus. The density bonus provided by this Chapter shall be available only to a housing development of five or more dwelling units, including mixed-use developments.

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  • Commercial Development. When an applicant for approval of a commercial development has entered into an agreement for partnered housing meeting the requirements of this Subsection E. to contribute affordable housing through a joint project or two separate projects encompassing affordable housing, the Director shall review and approve to the commercial developer a development bonus.

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  • Agreement for Partnered Housing. The agreement for partnered housing shall be between the commercial developer and a housing developer, shall identify how the commercial developer will contribute affordable housing, and shall be reviewed and approved by the City.

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  • Method of Contributing Housing. Affordable housing may be contributed by the commercial developer in one of the following manners:

    • a. The commercial developer may directly build the dwelling units.

    • b. The commercial developer may donate a portion of the commercial development site or property elsewhere within the City limits, to the affordable housing developer for use as a site for affordable housing.

    • c. The commercial developer may make a cash payment to the affordable housing developer that shall be used towards the costs of constructing the affordable housing project.

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  • Affordability Requirements. To qualify for a development bonus under this Section, the commercial developer shall partner with a housing developer that provides at least 30 percent of the dwelling units for low-income households or at least 15 percent of the dwelling units for very low-income households.

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  • Location of Affordable Housing. The housing shall be constructed on the site of the commercial development or on a site that is all the following:

    • a. Within the City limits;

    • b. Close to public facilities and services, including schools and employment centers; and

    • d. Within one-half mile of a major transit stop.

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  • Type of Development Bonus. The development bonus granted to the commercial developer shall mean incentives, mutually agreed upon by the developer and the City, that may include, but are not limited to, any of the following:

    • a. Up to a 20 percent increase in maximum allowable intensity as specified in the General Plan.

    • b. Up to a 20 percent increase in maximum allowable floor area ratio.

    • c. Up to a 20 percent increase in maximum allowable height requirements.

    • d. Up to a 20 percent reduction in minimum parking requirements.

    • e. Use of a limited-use/limited-application elevator for upper floor accessibility.

    • f. An exception to this Zoning Code or other land use regulation.

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  • No Waiver or Reduction of Affordable Housing Fee. A development bonus in compliance with this Section shall not include a reduction or waiver of the requirements specified in Chapter 17.40.

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  • Timing of Construction. If the developer of the affordable dwelling units does not commence with construction of those units in compliance with timelines ascribed by the agreement described in Paragraph 1., above, the City may withhold certificates of occupancy for the commercial development under construction until the developer has completed construction of the affordable units.

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  • Annual Report to The State. The City shall submit to the Department of Housing and Community Development, as part of the annual report required by Government Code Section 65400, information describing an approved commercial development bonus, including the terms of the agreements between the commercial developer and the affordable housing developer, and the developers and the City, and the number of affordable dwelling units constructed as part of the agreement(s).

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  • Shared Housing. A shared housing building, as defined in Government Code Section 65915, which meets the residency requirements of subsection A and the eligibility requirements of Section 18.64.030, qualifies as a housing development subject to this Chapter.

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  • Residential Care Facilities for the Elderly. A Residential Care Facility for the Elderly, as defined in Section 1569.2 of the Health and Safety Code, which meets the residency requirements of subsection A and the eligibility requirements of Section 18.64.030, qualifies as a housing development subject to this Chapter.

18.64.030 – Allowed Density Bonuses

The Council shall determine the amount of a density bonus allowed in a housing development in compliance with this Section. For the purposes of this Chapter, "density bonus" means a density increase over the otherwise maximum allowable residential density under the applicable General Plan Land Use designation and zone as of the date of application to the City.

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  • Density Bonus. A housing development that complies with the eligibility requirements specified in Subsection 18.64.020 A., above, shall be entitled to density bonuses as follows, unless a lesser percentage is proposed by the applicant.

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  • Bonus for Lower Income Household Units. A housing development that is eligible for a bonus in compliance with the criteria specified in Subparagraph 18.64.020 A.1. (Lower Income Households), including a shared housing building development, shall be entitled to a density bonus calculated in compliance with Table 4-5 (Bonus for Lower Income Households):
Table 4-5
Bonus for Lower Income Households
Table 4-5
Bonus for Lower Income Households
Percentage of Low-Income Units
Proposed
Percentage of Density Bonus
10 20
11 21.5
12 23
13 24.5
14 26
15 27.5
16 29
17 30.5
18 32
19 33.5
20 35
21 38.75
22 42.5
23 46.25
24 50

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  • Bonus for Very Low-Income Household Units. A housing development that is eligible for a bonus in compliance with the criteria specified in Subparagraph 18.64.020 A.2. (Very LowIncome Households), including a shared housing building development, shall be entitled to a density bonus calculated in compliance with Table 4-6 (Bonus for Very Low-Income Households):
Table 4-6
Bonus for Very-Low Income Households
Table 4-6
Bonus for Very-Low Income Households

Percentage of Very-Low Income Units
Proposed

Percentage of Density Bonus
5 20
6 22.5
7 25
8 27.5
9 30
10 32.5
11 35
12 38.75
13 42.5
14 46.25
15 50

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Bonus for Senior Citizen Development.

  • a. A housing development that is eligible for a bonus in compliance with the criteria in Subparagraph 18.64.020 A.3. (senior citizen development or mobile home park) shall be entitled to a density bonus of 20 percent of the number of senior housing units. For purposes of this subparagraph, “development” includes a shared housing building development.

  • b. For development restricting 100 percent of the residential units for senior housing, allow development at any residential density, provided that any increased density is compatible with planned uses on neighboring properties and consistent with other applicable General Plan policies.

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  • Bonus for Moderate Income Units in For-Sale Development. A housing development that is eligible for a bonus in compliance with the criteria specified in Subparagraph 18.64.020 A.4. (Moderate Income Households in a For-Sale Development)) shall be entitled to a density bonus calculated in compliance with Table 4-7 (Bonus for Moderate-Income Households):

Table 4-7

Table 4-7 Table 4-7
Bonus for Moderate-Income Households
Percentage of Moderate-Income Units
Proposed
Percentage of Density Bonus
10 5
11 6
12 7
13 8
14 9
15 10
16 11
17 12
18 13
19 14
20 15
21 16
22 17
23 18
24 19
25 20
26 21
27 22
28 23
29 24
30 25
31 26
32 27
33 28
34 29
35 30
36 31
37 32
38 33
39 34
40 35
41 38.75

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Chapter 18.64 DensityBonus and Affordable Housing
42 42.5
43 46.25
44 50

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  • Bonus for Other Identifiable Groups. A housing development that is eligible for a bonus in compliance with the criteria in Subparagraph 18.64.020 A.5. (Other Identifiable Groups) shall be entitled to a density bonus of 10 percent of the number of housing units giving rise to a density bonus under that Paragraph.

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  • Bonus for Student Housing Development with Low-Income Units. A housing development that is eligible for a bonus in compliance with the criteria specified in Subparagraph 18.64.020.A.6 (Student Housing) shall be entitled to a density bonus calculated in compliance with Table 4-8 (Bonus for Low-Income Student Housing). For purposes of calculating a density bonus granted pursuant to this paragraph, the term “unit” as used in this section means one rental bed and its pro rata share of associated common area facilities:

Table 4-8

Bonus for Low-Income Student Housing

Percentage of Low Income Units
Proposed
Percentage of Density Bonus
20 35
21 38.75
22 42.5
23 46.25
24 50

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100 Percent Affordable Developments .

  • a. A housing development that is eligible for a bonus in compliance with the criteria in paragraph 18.64.020.A.7 (100 Percent Affordable Developments), that meets all of the following requirements:

    • (1) The rent for at least 20 percent of the total units in the development (excluding a manager’s unit or units) shall meet the requirements for “affordable rent” specified in Health and Safety Code Section 50053.

    • (2) The rent for all other units in the development (excluding a manager’s unit or units) shall meet the requirements for developments that receive an allocation of State or Federal low-income housing tax credits from the California Tax Credit Allocation Committee.

  • b. Amount of bonus available.

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  • (1) Except as otherwise provided in subparagraph (2), the density bonus shall be 80 percent of the number of units for lower-income households.

  • (2) If the housing development is located within one-half mile of a major transit stop, the City shall not impose any maximum controls on density.

  • (3) If the housing development is located in a very low vehicle travel area within a designated county, the city, county, or city and county shall not impose any maximum controls on density.

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  • Condominium Conversions . A housing development that is eligible for a bonus in compliance with the criteria specified in paragraph 18.64.020.A.8 (Condominium Conversions) shall be entitled to a 25 percent density bonus.

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  • Properties within One-Quarter Mile of A Multimodal Transit Stop. For properties within one-quarter mile of a multimodal transit stop, allow a 10 percent increase in residential density and/or a 10 percent increase in the maximum allowed nonresidential square footage, provided that the increased density and/or intensity is compatible with planned uses on neighboring properties and consistent with other applicable General Plan policies.

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  • Development Proposing A Minimum LEED Gold or Greater Equivalent. For development proposing a minimum LEED Gold or greater equivalent, allow a 10 percent increase in residential density and/or a 10 percent increase in the maximum allowed nonresidential square footage, provided that the increased density and/or intensity is compatible with planned uses on neighboring properties and consistent with other applicable General Plan policies.

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  • Childcare Facilities . A housing development that is eligible for a bonus in compliance with the criteria specified in paragraph 18.64.020.A.9 (Housing with Childcare Facilities) shall be entitled to a density bonus in compliance with Section 18.64.060.

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  • Density Bonus for Land Donation. When an applicant for a tentative map, parcel map, or other residential development approval donates land to the City in compliance with this Paragraph, the applicant shall be entitled to a density bonus for the entire development, as follows; provided, that nothing in this Paragraph shall be construed to affect the authority of the City to require a developer to donate land as a condition of development approval.

    • a. Basic Bonus. The applicant shall be entitled to a 15 percent increase above the otherwise maximum allowable residential density under the applicable General Plan Land Use Plan designation and zone for the entire development, in compliance with Table 4-8 (Basic Bonus):
Table 4-9
Basic Bonus
Table 4-9
Basic Bonus
Percentage of Very Low-
Income Units Proposed
Percentage of Density
Bonus
10 15
11 16
12 17
13 18
14 19
15 20
16 21
17 22

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Table 4-9 Basic Bonus

Percentage of Very Low-
Income Units Proposed
Percentage of Density
Bonus
18 23
19 24
20 25
21 26
22 27
23 28
24 29
25 30
26 31
27 32
28 33
29 34
30 35
  • b. Increased Bonus. The increase identified in Table 4-8 (Basic Bonus) above shall be in addition to any increase in density allowed by Paragraphs A.1. through A.11., up to a maximum combined density increase of 35 percent if an applicant seeks both the increase required in compliance with this Paragraph A.12., as well as the bonuses provided by Subsections A.1. through A.11

  • c. Eligibility for Increased Bonus. An applicant shall be eligible for the increased density bonus provided by this Paragraph only if all the following conditions are met:

    • (1) The applicant donates and transfers the land no later than the date of approval of the final subdivision map, final parcel map, or residential development application.

    • (2) The developable acreage and zoning classification of the land being transferred are sufficient to allow construction of units affordable to very low-income households in an amount not less than 10 percent of the number of residential units of the proposed development.

  • (3) The transferred land is at least one acre in size, or of sufficient size to allow development of at least 40 dwelling units; has the appropriate General Plan Land Use Plan designation; is appropriately zoned with development standards for development at the density described in Government Code Section 65583.2(c)(3); and, is or will be served by adequate public facilities and infrastructure.

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  • (4) No later than the date of approval of the final subdivision map, final parcel map, or of the residential development, the transferred land shall have all of the permits and approvals, other than Architectural Review and Building Permits, necessary for the development of the very low income housing units on the transferred land.

  • (5) The transferred land and the affordable units shall be subject to a deed restriction ensuring continued affordability of the units consistent with Section 18.64.070 (Continued Availability), which shall be recorded on the property at the time of dedication.

  • (6) The land is transferred to the City or to a housing developer approved by the City. The City may require the applicant to identify and transfer the land to the approved housing developer.

  • (7) The transferred land shall be within the boundary of the proposed development or, if the City agrees, within one-quarter mile of the boundary of the proposed development.

  • (8) The applicant identifies a proposed source of funding for the very low-income units not later than the date of approval of the final subdivision map, final parcel map, or residential development application.

  • (9) Any land that is donated to the City in compliance with to SCCC Chapter 17.35 (“Park and Recreational Land”) is ineligible for a density bonus in compliance with this paragraph.

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  • Greater or Lesser Bonuses. The City may choose to grant a density bonus greater than provided by this Section for a development that meets the requirements of this Section or grant a proportionately lower density bonus for a development that does not fully comply with the requirements of this Section.

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  • Density Bonus Calculations. The calculation of a density bonus in compliance with this Section that results in fractional units shall be rounded up to the next whole number, as required by State law. For calculating a density bonus, the residential units do not have to be based upon individual subdivision maps or parcels.

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  • Requirements for Amendments or Discretionary Approval. The granting of a density bonus shall not be interpreted, in and of itself, to require a General Plan amendment, Zone Map amendment, or other discretionary approval. The granting of a density bonus shall not require or be interpreted to require the waiver of a local ordinance or provisions of a local ordinance unrelated to development standards.

rements for Amendments or Discretionary Approval.** The granting of a density bonus shall not be interpreted, in and of itself, to require a General Plan amendment, Zone Map amendment, or other discretionary approval. The granting of a density bonus shall not require or be interpreted to require the waiver of a local ordinance or provisions of a local ordinance unrelated to development standards.

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  • Location of Bonus Units. The developer may locate density bonus units in the housing development project in areas other than where the units for the lower income households are located.

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  • Additional Density Bonus Pursuant to AB 1287 (2023) . A project that provides sufficient affordable units to qualify for a 50% density bonus pursuant to paragraphs 1, 2, or 4 of subsection A, which also commits to providing additional affordable units, shall be eligible for an additional density bonus as follows, unless a lesser percentage is proposed by the applicant:

    1. Additional Bonus for Very-Low Income Units . A housing development that provides additional units for Very Low-Income Households meeting the requirements of Section 18.64.020.A.2 shall be entitled to an additional density bonus calculated in compliance with Table 4-9 (Additional Bonus for Very Low-Income Households):

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Table 4-10

Additional Bonus for Very Low-Income Households

Additional Percentage of Very Low-
Income Units Proposed
Percentage of Additional Density
Bonus
5 20
6 23.75
7 27.5
8 31.25
9 35
10 38.75

2. Additional Bonus for Moderate-Income Units . A housing development that provides additional for-sale units for Moderate Income Households meeting the requirements of Section 18.64.020.A.4 shall be entitled to an additional density bonus calculated in compliance with Table 4-10 (Additional Bonus for Moderate-Income Households):

Table 4-11

Additional Bonus for Moderate-Income Households

Percentage of Additional Moderate-
Income Units Proposed
Percentage of Additional
Density Bonus
5 20
6 22.5
7 25
8 27.5
9 30
10 32.5
11 35
12 38.75
13 42.5
14 46.25
15 50

18.64.040 – Allowed Incentives or Concessions

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Applicant Request and City Approval.

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  • An applicant for a density bonus in compliance with this Chapter may submit to the City a proposal for the specific incentives or concessions listed in Subsection C. (Type of Incentives), below, that the applicant requests in compliance with this Section, and may request a meeting with the Director. The applicant may file a request either before filing an application for City approval of a proposed project or concurrently with an application for project approval. The Council shall grant an incentive or concession request that complies with this Section unless the Council makes any of the following findings in writing, based upon substantial evidence:

    • a. The incentive or concession does not result in identifiable and actual cost reductions, to provide for affordable housing costs, as defined in Health and Safety Code Section 50052.5, or for rents for the targeted units to be set as specified in Section 18.64.070 B. (Dwelling Unit Cost Requirements);

    • b. The incentive or concession would have a specific adverse impact, as defined in Government Code Section 65589.5(d)(2), upon public health and safety, or on any

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real property 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 moderateincome households; or

  • c. The concession or incentive would be contrary to State or Federal law.

  • d. The applicant has already received the maximum quantity of incentives specified in Subsection B., below.

  • The applicant shall show that a waiver or modification of development standards is necessary to make the housing units economically feasible.

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  • Number of Incentives. The applicant shall receive the following number of incentives or concessions.

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  • One Incentive or Concession. One incentive or concession for a project that includes at least 10 percent of the dwelling units for lower income households, at least five percent for very low-income households, or at least 10 percent for persons and families of moderate income in a for-sale development or at least 20 percent for lower income students in a student housing development.

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  • Two Incentives or Concessions. Two incentives or concessions for a project that includes at least 17 percent of the dwelling units for lower income households, at least 10 percent for very low-income households, or at least 20 percent for persons and families of moderate income in a for-sale development, or at least 23 percent of the total units for lower income students in a student housing project.

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  • Three Incentives or Concessions. Three incentives or concessions for a project that includes at least 24 percent of the dwelling units for lower income households, at least 15 percent for very low-income households, or at least 30 percent for persons and families of moderate income in a for-sale development.

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  • Four Incentives or Concessions. Four incentives or concessions for projects that include at least 16 percent of the units for very low income households or at least 45 percent for persons and families of moderate income in a development in which the units are for sale.

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  • Five Incentives or Concessions. Five incentives or concessions for a 100 percent affordable project that is eligible for a bonus under paragraph 18.64.020.A.7. In addition, if such a project is located within one-half mile of a major transit stop, or is located in a very low vehicle travel area as defined in Government Code Section 65915, the applicant shall also receive a height increase of up to three additional stories, or 33 feet.

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  • Type of Incentives. For the purposes of this Chapter, concession or incentive means any of the following:

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  • A reduction in the site development standards of this Zoning Code (e.g., site coverage limitations, setbacks, on-site open space requirements, reduced parcel sizes, and/or parking requirements) (also see Section 18.64.050 [Parking Requirements in Density Bonus Projects]), or a modification of architectural design requirements, which exceed the minimum building standards specified in SCCC Title 15 (“Building and Construction”), and which results in identifiable, and actual cost reductions to provide for affordable housing costs, as defined in Health and Safety Code Section 50052.5, or for rents for the targeted units to be set as identified in Section 18.64.070 B. (Dwelling Unit Cost Requirements);

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  • Zoning Map amendment to Mixed Use-Neighborhood Commercial (MU-NC, Mixed UseCommunity Commercial (MU-CC), or Mixed Use-Regional Commercial (MU-RC) in conjunction with the housing development, if nonresidential land uses will reduce the cost of the housing development, and the nonresidential land uses are compatible with the housing

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  • project and the existing or planned development in the area where the project will be located; and/or

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  • Other regulatory incentives proposed by the applicant or the City that will result in identifiable and actual cost reductions to provide for affordable housing costs, as defined in Section 50052.5 of the Health and Safety Code, or for rents for the targeted units to be set as specified in Subsection 18.64.070 B. (Dwelling Unit Cost Requirements).

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  • Effect of Incentive or Concession. The granting of a concession or incentive shall not be interpreted, in and of itself, to require a General Plan amendment, Zoning Map amendment, study, or other discretionary approval.

18.64.050 – Parking Requirements in Density Bonus Projects

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  • Applicability. This Section applies to a development that meets the requirements of Section 18.64.020 (Eligibility for Bonus, Incentives, and Concessions), above, at the request of the applicant. An applicant may request additional parking incentives or concessions beyond those provided in this Section in compliance with Section 18.64.040 (Allowed Concessions and Incentives), above through either a Modification, or Variance. A request in compliance with this Section shall neither reduce nor increase the number of incentives or concessions to which the applicant is entitled in compliance with Section 18.64.040 (Allowed Concessions or Incentives).

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Number of Parking Spaces Required.

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  • Default Parking Ratio. At the request of the applicant, the City shall not require vehicular parking for a project that complies with the requirements of Section 18.64.020 (Eligibility for Bonus, Incentives, and Concessions), above, inclusive of handicapped and guest parking, that exceeds the following ratios:

    • a. Zero or one bedroom: One on-site parking space per unit.

    • b. Two or three bedrooms: 1.5 on-site parking spaces per unit.

    • c. Four or more bedrooms: Two- and one-half on-site parking spaces per unit.

    • d. Student Housing Developments: Zero parking spaces.

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  • Notwithstanding paragraph 1, above, if a development includes the maximum percentage of low income or very low-income dwelling units specified in Subparagraphs 18.64.030 A.1. and 2. (Allowed Density Bonuses), above, and is located within one-half mile of a major transit stop and there is unobstructed access to the major transit stop from the development, then, upon the request of the applicant, the City shall not impose a vehicular parking ratio, inclusive of handicapped and guest parking, that exceeds 0.5 spaces per bedroom.

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  • Notwithstanding paragraph 1, above, if a development consists solely of rental units, exclusive of a manager’s unit(s), with an affordable housing cost to lower income families, as specified in Health and Safety Code Section 50052.5, then, upon the request of the applicant, the City shall not impose a vehicular parking ratio, , if the development meets any of the following conditions:

  • a. The development is located within one-half mile of a major transit stop, and there is unobstructed access to the major transit stop from the development.

b. The development is a for-rent housing development for individuals who are 55 years of age or older that complies with Sections 51.2 and 51.3 of the Civil Code, and the development has either paratransit service or unobstructed access, within one-half mile, to fixed bus route service that operates at least eight times per day.

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c. The development is a special needs housing development, as defined in Health and Safety Code Section 51312, and the development has either paratransit service or unobstructed access, within one-half mile, to fixed bus route service that operates at least eight times per day.

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  • d. The development is a supportive housing development, as defined in Health and Safety Code Section 50675.14. Parking Study. Notwithstanding paragraphs 2. and 3., above, if the City, or an independent consultant, has conducted an areawide or citywide parking study in the last seven years, then the City may impose a higher vehicular parking ratio not to exceed the ratio described in Subparagraph B.1. (Default Parking Ratio), above, based upon substantial evidence found in the parking study, that includes, but is not limited to, an analysis of parking availability, differing levels of transit access, walkability access to transit services, the potential for shared parking, the effect of parking requirements on the cost of market-rate and subsidized developments, and the lower rates of car ownership for low-income and very low income individuals, including seniors and special needs individuals. The City shall pay the costs of any new study. The City shall make findings, based on a parking study completed in compliance with this Paragraph, supporting the need for the higher parking ratio.

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  • Location of Parking. For purposes of this Section, a development may provide on-site parking through tandem parking or uncovered parking, but not through on-street parking.

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  • Rounding to Next Whole Number. If the total number of parking spaces required for a development is other than a whole number, the number shall be rounded up to the next whole number.

18.64.060 – Bonus and Incentives for Development with Childcare Facilities

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Housing Developments. A housing development that complies with the resident and project size requirements of Subsections 18.64.020 A. and B. (Resident Requirements and Applicant Selection of Basis for Bonus), above, and includes as part of that development a childcare facility other than a large or small family child day care home, that will be located on the site of, as part of, or adjacent to the development, shall be subject to the following additional bonus, incentives, and requirements.

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  • Additional Bonus and Incentives. The City shall grant a housing development that includes a childcare facility in compliance with this Section either of the following:

  • a. An additional density bonus that is an amount of floor area in square feet of residential space that is equal to or greater than the floor area of the childcare facility; or

  • b. An additional incentive that contributes significantly to the economic feasibility of the construction of the childcare facility.

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Requirements to Qualify for Additional Bonus or Incentive.

  • a. The City shall require, as a condition of approving the housing development, that:

    • (1) The childcare facility shall remain in operation for a period that is as long as or longer than the period of time during which the density bonus units are required to remain affordable in compliance with Section 18.60.070 (Continued Availability), below; and

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  • (2) Of the children who attend the childcare facility, the children of very low-income households, lower income households, or families of moderate income shall equal a percentage that is equal to or greater than the percentage of dwelling units that are required for very low-income households, lower income households, or families of moderate income in compliance with Subsection 18.64.020 A. Resident Requirements), above.

  • b. Notwithstanding any other provision of this Chapter, the City shall not be required to provide a density bonus for a childcare facility in compliance with this Section if it finds, based upon substantial evidence, that the community already has adequate childcare facilities.

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  • Childcare Facility in Commercial, Mixed-Use, or Office Industrial Developments. An applicant for a commercial, mixed-use, or office and industrial development project, containing at least 50,000 square feet of floor area, may be granted a density bonus when that applicant agrees to set aside at least 2,000 square feet of interior floor area and 3,000 outdoor square footage to be used for a childcare facility, other than a large or small family child day care home, in compliance with Government Code Section 65917.5 (Commercial density bonus).

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Allowable Density Bonuses. The allowable density bonus may be one of the following:

  • a. A maximum of five square feet of floor area for each one square foot of floor area contained in the childcare facility located in an existing childcare facility; or

  • b. A maximum of 10 square feet of floor area for each one square foot of floor area contained in the childcare facility located in a new childcare facility.

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  • Requirements. Requirements to qualify for the additional density bonus shall include all the following:

  • a. For purposes of calculating the allowable density bonus under this Subsection, both the total area contained within the exterior walls of the childcare facility and all outdoor areas devoted to the use of the facility in compliance with applicable State childcare licensing requirements shall be considered.

  • b. The childcare facility shall be of a sufficient size, as determined by the Director, to comply with all applicable State licensing requirements to accommodate at least 40 children.

  • c. This facility may be located either on the development project site or may be located offsite as agreed upon by the applicant and the City. If the childcare facility is not located on the development project site, the City shall determine whether the location of the childcare facility is appropriate and whether it complies with the purpose and intent of this Section.

  • d. The granting of a density bonus shall not preclude the City from imposing necessary conditions on the development project or on the additional square footage in compliance with Government Code Section 65917.5 (Commercial density bonus).

18.64.070 – Continued Availability

The units that qualified the housing development for a density bonus and other incentives and concessions shall continue to be available as affordable dwelling units in compliance with the following requirements, as required by Government Code Section 65915(c). See also Section 18.64.110 (Controls of Resale), below.

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  • Duration of Affordability. The applicant shall agree to, and the City shall ensure, the continued availability of the dwelling units that qualified the housing development for a density bonus and other incentives and concessions, as follows.

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  • Low- and Very Low-Income Dwelling Units – 55 Years. The continued affordability of all low- and very low-income qualifying dwelling units shall be maintained for 55 years, or a longer time if required by the construction or mortgage financing assistance program, mortgage insurance program, rental subsidy program, or by City policy or ordinance.

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  • Moderate Income Dwelling Units in For-Sale Developments – 10 Years. The continued availability of moderate-income dwelling units in a for-sale development shall be maintained for a minimum of 10 years, or a longer time if required by City policy or ordinance.

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Dwelling Unit Cost Requirements. The rents and owner-occupied costs charged for the dwelling units in the development that qualify the project for a density bonus and other incentives and concessions, shall not exceed the following amounts during the period of continued availability required by this Section:

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  • Lower Income Dwelling Units. Rents for the lower income density bonus dwelling units shall be set at an affordable rent as defined in Health and Safety Code Section 50053; and

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  • Owner-Occupied Dwelling Units. Owner-occupied dwelling units shall be available at an affordable housing cost as defined in Health and Safety Code Section 50052.5.

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Occupancy and Resale of Income Restricted For-Sale Dwelling Units. The City shall enforce an equity sharing agreement, unless it conflicts with the requirements of another public funding source or law or may defer to the recapture provisions of the public funding source.. The following requirements apply to the equity sharing agreement.

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  • Upon resale, the seller of the dwelling unit shall retain the value of any improvements, the down payment, and the seller's proportionate share of appreciation.

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  • The City shall recapture any initial subsidy and its proportionate share of appreciation, which shall then be used within five years for any of the purposes described in Health and Safety Code Section 33334.2(e) that promote home ownership. For the purposes of this Section:

  • a. The City’s initial subsidy shall be equal to the fair market value of the dwelling unit at the time of initial sale, minus the initial sale price to the moderate-income household, plus the amount of any down payment assistance or mortgage assistance. If upon resale the market value is lower than the initial market value, then the value at the time of the resale shall be used as the initial market value; and

  • b. The City’s proportionate share of appreciation shall be equal to the ratio of the initial subsidy to the fair market value of the dwelling unit at the time of initial sale.

18.64.080 – Location and Type of Affordable Dwelling Units

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  • Location/Dispersal of Affordable Dwelling Units. Affordable dwelling units constructed in conjunction with a density bonus shall be dispersed throughout the housing development project site, rather than clustered in a s single area or a few areas. The location of the affordable dwelling units within a housing development shall be approved as part of the entitlement granted by the Council. Affordable dwelling units shall contain on average the same number of bedrooms as the market rate dwelling units in the project and shall be compatible with the design or use of remaining dwelling units in terms of appearance, materials, and finish quality.

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  • Phasing. If a project is to be phased, the affordable dwelling units shall be phased in the same proportion as the market rate dwelling units or phased in another sequence acceptable to the City.

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18.64.090 – Processing of Bonus Requests

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  • Permit Requirements. A request for a density bonus and other incentives and concessions shall be evaluated and recommended by the Director; provided, the density bonus and other incentives and concessions shall be approved or denied only by the Council.

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  • Findings for Approval. The approval of a density bonus and other incentives and concessions shall require that the Review Authority first make all the following additional findings:

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  • The residential development will be consistent with the General Plan, to the maximum extent practicable, and any applicable specific plan, except as provided by this Chapter for density bonuses, and other incentives and concessions;

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  • The approved number of dwelling units can be accommodated by existing and planned infrastructure capacities;

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  • Substantial evidence exists to indicate that the project will provide affordable housing in a manner consistent with the purpose and intent of this Chapter; and

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  • There are sufficient provisions to guarantee that the dwelling units will remain affordable for the required time periods specified in Section 18.64.070 (Continued Availability), above.

18.64.100 – Density Bonus Agreements

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  • Agreement Required. An applicant requesting a density bonus shall agree to enter into a density bonus agreement (referred to as the "agreement") with the City in a standard form approved by the City Attorney. The applicant shall prepare the draft agreement for submission to the City for review.

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Agreement Provisions.

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  • Project Information. The agreement shall include at least the following information about the project:

  • a. The total number of dwelling units approved for the housing development, including the number of designated dwelling units;

  • b. A description of the household income group to be accommodated by the housing development, and the standards and methodology for determining the corresponding affordable rent or affordable sales price and housing cost consistent with HUD Guidelines;

  • c. The marketing plan for the affordable dwelling units;

  • d. The location, size (square feet), and number of bedrooms of the designated dwelling units;

  • e. Tenure of the use restrictions for designated dwelling units of the time periods required by Section 18.64.070 (Continued Availability), above;

  • f. A schedule for completion and occupancy of the designated dwelling units;

  • g. A description of the additional incentives and concessions being provided by the City;

  • h. A description of the remedies for breach of the agreement by the City, the owners, developers, and/or third-party beneficiaries of the project (the City may identify tenants or qualified purchasers as third-party beneficiaries under the agreement); and

  • i. Other provisions to ensure successful implementation and compliance with this Chapter.

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  • Minimum Requirements. The agreement shall provide, at minimum, that:

  • a. The developer shall give the City the continuing right-of-first refusal to lease or purchase any or all the designated dwelling units at the appraised value;

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  • b. The deeds to the designated dwelling units shall contain a covenant stating that the developer or successors-in-interest shall not assign, lease, rent, sell, sublet, or otherwise transfer any interests for the designated units without first obtaining the written approval of the City;

  • c. When providing the written approval, the City shall confirm that the price (rent or sale) of the designated dwelling unit is consistent with the limits established for low and very lowincome households, as published by HUD;

  • d. The City shall have the authority to enter into other agreements with the developer, or purchasers of the designated dwelling units, to ensure that the subject dwelling units are continuously occupied by eligible households;

  • e. Applicable deed restrictions, in a form satisfactory to the City Attorney, shall contain provisions for the enforcement of owner or developer compliance. Any default or failure to comply may result in foreclosure, specific performance, or withdrawal of the Certificate of Occupancy;

  • f. In any action taken to enforce compliance with the deed restrictions, the City Attorney may utilize and legal remedies to recover all of the City’s costs of action including legal services; and

  • g. Compliance with the agreement will be monitored and enforced in compliance with the measures specified in the agreement.

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  • For-Sale Housing Conditions. In the case of a for-sale housing development, the agreement shall provide for the following conditions governing the initial sale and use of the designated dwelling units during the applicable restriction periods:

  • a. Designated dwelling units shall be owner-occupied by eligible households, or by qualified residents, depending on the type of density bonus; and

  • b. The initial purchaser of each designated dwelling unit shall execute an instrument or agreement approved by the City which:

    • (1) Restricts the sale of the unit in compliance with this Chapter, or other applicable City policy or ordinance, during the applicable use restriction periods;

    • (2) Contains provisions as the City may require ensuring continued compliance with this Chapter and State law; and

    • (3) Shall be recorded against the parcel containing the designated dwelling unit.

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  • Rental Housing Conditions. In the case of a rental housing development, the agreement shall provide for the following conditions governing the use of designated dwelling units during the applicable restriction periods:

  • a. Rents for the lower income dwelling units shall be set at an affordable rent level;

  • b. The rules and procedures for qualifying tenants, establishing affordable rent, filling vacancies, and maintaining the designated dwelling units for qualified tenants;

  • c. The rules and procedures for qualifying tenants, establishing affordable rent, filling vacancies, and maintaining the designated dwelling units for qualified tenants;

  • d. Provisions requiring owners to annually verify tenant incomes and maintain books and records to demonstrate compliance with this Chapter;

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  • e. Provisions requiring owners to submit an annual report to the City, which includes the name, address, and income of each person occupying the designated dwelling units, and which identifies the bedroom size and monthly rent or cost of each unit; and

  • f. The applicable use restriction period shall comply with the time limits for continued availability in Section 18.64.070 (Continued Availability), above.

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Execution of Agreement.

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  • Following Council’s approval of the agreement, and execution of the agreement by all parties, the City shall record the completed agreement on the parcels designated for the construction of designated dwelling units, or a memorandum in a form acceptable to the City Attorney, at the Santa Clara County Recorder's Office.

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  • The approval and recordation shall take place at the same time as the final map or, where a map is not being processed, before issuance of Building Permits for the designated dwelling units.

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  • The agreement shall be binding on all future owners, developers, and/or successors-ininterest.

18.64.110 – Controls of Resale

To maintain the availability of for-sale affordable dwelling units constructed in compliance with this Chapter, the following resale conditions shall apply.

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  • Limits on Resale Price. The price received by the seller of an affordable dwelling unit shall be limited to the purchase price plus an increase based on the local consumer price index, an amount consistent with the increase in the median income since the date of purchase, or the fair market value, whichever is less. Before offering an affordable dwelling unit for sale, the seller shall provide written notice to the City of their intent to sell. The notice shall be provided by certified mail to the Director.

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  • Dwelling Units to Be Offered to The City. Home ownership affordable units constructed, offered for sale, or sold under the requirements of this Section shall be offered to the City or its assignee for a period of at least 90 days from the date of the notice of intent to sell is delivered to the City by the first purchaser or subsequent purchasers. Home ownership affordable units shall be sold and resold from the date of the original sale only to households as determined to be eligible for affordable units by the City in compliance with this Section. The seller shall not levy or charge any additional fees nor shall any "finder's fee" or other monetary consideration be allowed other than customary real estate commissions and closing costs.

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  • Declaration of Restrictions. The owner(s) of any affordable dwelling unit shall attach and legally reference in the grant deed conveying title of the affordable ownership unit a declaration of restrictions provided by the City, stating the restrictions imposed in compliance with this Section. The grant deed shall afford the grantor and the City the right to enforce the declaration of restrictions. The declaration of restrictions shall include all applicable resale controls, occupancy restrictions, and prohibitions required by this Section.

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  • City to Monitor Resale of Units. The City shall monitor the resale of ownership affordable dwelling units. The City or its designee shall have a 90-day option to commence purchase of ownership affordable dwelling units after the owner gives notification of intent to sell. Any abuse in the resale provisions shall be referred to the City for appropriate action.

18.64.120 – Waiver of Standards

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  • Waiver of Standards Preventing the Use of Bonuses, Incentives, or Concessions. An applicant may submit a written proposal to the Director for the waiver or reduction of development standards.

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The Council may grant the request if the applicant demonstrates to the satisfaction of the Council, based upon substantial evidence, that the proposed waiver or reduction is necessary to make the housing development economically feasible, and that without the waiver the development standards would physically preclude the construction of the development that meets all other legal requirements, subject to the limitations and requirements of this Section.

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  • City Exemption. Notwithstanding the provisions of Subsection A., above, nothing in this Section shall be interpreted to require the City to:

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  • Grant a density bonus, incentive, or concession, or waive or reduce development standards, if the bonus, incentive, concession, waiver, or reduction would have a specific, adverse impact, as defined in Government Code Section 65589.5(d)(2), upon health or safety, and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact;

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  • Grant a density bonus, incentive, or concession, or waive or reduce development standards, if the bonus, incentive, concession, waiver, or reduction would have an adverse impact on any real property that is listed in the California Register of Historical Resources; or

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  • Waive or reduce the development standards if the waiver or reduction would be contrary to State or Federal law.

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  • For residential development providing greater than 50 percent of the total number of units for affordable housing on residentially designated properties, allow development at any residential density, provided that the increased density is compatible with planned uses on neighboring properties and consistent with other applicable General Plan policies. [City: this is General Plan Policy 5.5.1-P4]. For neighborhood and community mixed-use properties under one-half acre, allow mixed-use development of entirely residential uses or development of entirely commercial or community-serving office uses in order to facilitate development on smaller lots, consistent with the required density and intensity ranges as well as other applicable General Plan policies.

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  • For residentially designated properties under one-half acre in size, allow an alternate density of up to one range higher or lower than the classification shown on the General Plan Land Use Diagram in order to facilitate infill development, provided that the proposed development is compatible with surrounding uses and consistent with other applicable General Plan policies. For example, a parcel designated as low density may accommodate very low density or medium density, but not high density.

18.64.130 – Mixed Use Density Bonuses

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  • When an applicant for approval of a commercial development has entered into an agreement for partnered housing described in subsection C. to contribute affordable housing through a joint project or two separate projects encompassing affordable housing, the City shall grant to the commercial developer a development bonus as prescribed in subsection B. Housing shall be constructed on the site of the commercial development or on a site that is all of the following:

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  • Within the boundaries of the City of Santa Clara

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  • In close proximity to public amenities including schools and employment centers.

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  • Located within one-half mile of a major transit stop.

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  • The development bonus granted to the commercial developer shall mean incentives, mutually agreed upon by the developer and the City, that may include, but are not limited to, any of the following:

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  • Up to a 20-percent increase in maximum allowable intensity in the General Plan.

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  • Up to a 20-percent increase in maximum allowable floor area ratio.

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  • Up to a 20-percent increase in maximum height requirements.

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  • Up to a 20-percent reduction in minimum parking requirements.

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  • Use of a limited-use/limited-application elevator for upper floor accessibility.

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  • An exception to a zoning ordinance or other land use regulation.

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  • For purposes of this section, the agreement for partnered housing shall be between the commercial developer and the housing developer, shall identify how the commercial developer will contribute affordable housing, and shall be approved by the City.

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  • For purposes of this section, affordable housing may be contributed by the commercial developer in one of the following manners:

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  • The commercial developer may directly build the units.

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  • The commercial developer may donate a portion of the site or property elsewhere to the affordable housing developer for use as a site for affordable housing.

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  • The commercial developer may make a cash payment to the affordable housing developer that shall be used towards the costs of constructing the affordable housing project.

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  • Replacement Housing. For purposes of this section, subparagraph (A) of paragraph (3) of subdivision (c) of Section 65915, as may be amended, shall apply.

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  • If the developer of the affordable units does not commence with construction of those units in accordance with timelines ascribed by the agreement described in subsection C., the City may withhold certificates of occupancy for the commercial development under construction until the developer has completed construction of the affordable units.

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  • In order to qualify for a development bonus under this section, a commercial developer shall partner with a housing developer that provides at least 30 percent of the total units for low-income households or at least 15 percent of the total units for very low-income households.

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  • Nothing in this section shall preclude an affordable housing developer from seeking a density bonus, concessions or incentives, waivers or reductions of development standards, or parking ratios under this Chapter.

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  • A development bonus pursuant to this section shall not include a reduction or waiver of the requirements within Chapter 17.40.

18.64.140 – Parking relief for 100% affordable projects

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  • If one hundred percent of all units in a development, including total units and density bonus units, but exclusive of a manager’s unit or units, are for lower income households, as defined by Section 50079.5 of the Health and Safety Code, except that up to 20 percent of the units in the development, including total units and density bonus units, may be for moderate-income households, as defined in Section 50053 of the Health and Safety Code, then the City shall not require parking if a development project meets any of the following criteria:

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  • The development is located within one-half mile of a major transit stop and there is unobstructed access to the major transit stop from the development.

Santa Clara Zoning Code, Title 18

4-60 July 2025

18 Attachment 1:341

Publication, Apr 2026

SANTA CLARA CODE

Article 4 – Standards for Specific Land Uses

Chapter 18.64

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  • The development is a for-rent housing development for individuals who are 55 years of age or older that complies with Sections 51.2 and 51.3 of the Civil Code and the development has either paratransit service or unobstructed access, within one-half mile, to fixed bus route service that operates at least eight times per day.

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  • The development is either a special needs housing development, as defined in Section 51312 of the Health and Safety Code, or a supportive housing development, as defined in Section 50675.14 of the Health and Safety Code. A development that is a special needs housing development shall have either paratransit service or unobstructed access, within one-half mile, to fixed bus route service that operates at least eight times per day.

Santa Clara Zoning Code, Title 18 July 2025

4-61

18 Attachment 1:342

Publication, Apr 2026

ZONING

Chapter 18.64

Density Bonus and Affordable Housing

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Santa Clara Zoning Code, Title 18

4-62

July 2025

18 Attachment 1:343

Publication, Apr 2026

SANTA CLARA CODE

Article 4 – Standards for Specific Land Uses

Chapter 18.42