Santa Rosa Zoning Code Ch. 20-31 Density Bonus and Other Developer Incentives (§ 20-31.010 – § 20-31.110)

This chapter is intended to provide incentives for the production of Affordable Housing, Specialized Housing, Senior Housing and the development of Child Care Facilities. In enacting this chapter, it is the intent of the City of Santa Rosa to implement the goals, objectives, and policies of the General Plan and applicable specific plans, implement the Santa Rosa Housing Action Plan to address housing needs in the community, and ensure consistency between local regulations and California Government Code Section 65915 (State Density Bonus Law).

State Density Bonus law shall apply city-wide to eligible projects as defined in this chapter and in State law. In addition, a Supplemental Density Bonus is available for eligible projects located within the North Station Specific Plan and Downtown Station Specific Plan as outlined in this chapter.

In the event that any provision in this chapter conflicts with State law, State law shall control. (Ord. 2019-002 § 1; Ord. 2021-014 § 3; Ord. 2023-006, 6/6/2023)

The following terms used in this chapter shall be defined as follows:

Affordable Housing. A housing unit which is available for rent or sale to households with income levels at the extremely low-, very low-, low-, or moderate-income level as those terms are defined in this Section. Affordable Housing (100% affordable). One hundred percent of all units in the 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.

Affordable Rent. Monthly rent charged to extremely low-, very low-, low-, and moderate-income households for housing units as calculated in accordance with Section 50053.b of the California Health and Safety Code. Base Project. The number of housing units included in the Housing Development prior to the inclusion of any units granted through a Density Bonus.

Bedroom. A habitable space within a dwelling unit in which people sleep, which can also include permanent provisions for living, eating, and either sanitation or kitchen facilities but not both. A bedroom shall include two methods of ingress and egress, and be a minimum of 70 square feet, with no linear dimension smaller than 7 feet.

Child Care Facility. A facility that provides non-medical care and supervision of minor children for periods of

less than 24 hours and is licensed by the California State Department of Social Services, further subject to the definition in California Government Code Section 65915(h)(4).

Common Interest Development. Defined in California Civil Code Section 4100 to mean: (a) a community apartment project; (b) a condominium project; (c) a planned development; or (d) a stock cooperative.

Density Bonus Housing Agreement. A legally binding agreement between an Applicant and the Housing Authority of the City of Santa Rosa (Housing Authority) to ensure that continued affordability of the affordable housing units required by this Chapter persists and the units are maintained in accordance with this Chapter. Density Bonus Units. Those additional residential units granted pursuant to the provisions of this chapter. Density Bonus. See Division 7 (Glossary)

Development Costs. "Development costs" means the aggregate of all costs incurred in connection with a Housing Development which are approved by the City as reasonable and necessary, including, but not limited to, those costs listed in California Health and Safety Code Section 50065.

Development Standard. A site or construction condition, including, but not limited to, minimum lot area per unit requirement, height limits, required setbacks, maximum floor area ratio, onsite open-space requirement, or required parking that applies to a residential development pursuant to any ordinance, General Plan, Specific Plan, charter, or other local condition, law, policy, resolution, or regulation. Downtown Station Area Specific Plan. See Zoning Ordinance Section 20-28.060 (Downtown Station Area (-DSA) combining district).

Eligibility Points. The number of Eligibility Points that is calculated pursuant to Section 20-31.070

(Supplemental Density Bonus) must be earned by an applicant for a Housing Development to establish eligibility for a Supplemental Density Bonus. Eligibility Points are earned through the provision of affordable housing units, or through the provision of affordable housing together with approved community benefits as provided in this chapter.

Equivalent Size . Equivalent size for the purposes of enforcing affordable housing replacement unit provisions outlined in this chapter shall mean that replacement units must contain at least the same total number of bedrooms as the units being replaced.

Family-Size Units. A dwelling unit with three or more bedrooms.

Housing Authority of the City of Santa Rosa An appointed body of the City authorized to engage in or assist in the development or operation of affordable housing.

Housing Development. A development project of five or more residential units, including mixed-use developments. For the purposes of this chapter, "Housing Development" also includes projects defined in California Government Code Section 65915(i), including a subdivision or Common Interest Development, as defined in Section 4100 of the California Civil Code, approved by a City and consists of residential units or unimproved residential lots and either a project to substantially rehabilitate and convert an existing commercial building to residential use or the substantial rehabilitation of an existing multifamily dwelling, as defined in subdivision (d) of California Government Code Section 65863.4, where the result of the rehabilitation would be a net increase in available residential units.

Incentives or Concessions. Regulatory Incentives or Concessions which include, but are not limited to, the reduction of site development standards or Zoning Code requirements, approval of mixed-use zoning in conjunction with the Housing Development, or any other regulatory Incentives or Concessions proposed by the Applicant or the City that result in identifiable and actual cost reductions to provide for affordable housing costs, as defined in Section 50052.5 of the California Health and Safety Code, or for affordable rents as outlined in this Chapter.

Income (Household), Extremely Low. A household whose gross income does not exceed 30 percent of the area median income for the Santa Rosa Metropolitan Area, adjusted for family size, as published and periodically updated by the U.S. Department of Housing and Urban Development and the State Department of Housing and Community Development, pursuant to Section 50079.5 of the California Health and Safety Code.

Income (Household), Low. A household whose gross income does not exceed 80 percent of the area median income for the Santa Rosa Metropolitan Area, adjusted for family size, as published and periodically updated by the U.S. Department of Housing and Urban Development and the State Department of Housing and Community Development, pursuant to Section 50079.5 of the California Health and Safety Code.

Income (Household), Lower. A household whose gross income falls under the categories or extremely low-, very low-, or low-income as those terms are defined in this Section.

Income (Household), Moderate. A household whose gross income does not exceed 120 percent of the area median income for the Santa Rosa Metropolitan Area, adjusted for family size, as published and periodically updated by the State Department of Housing and Community Development pursuant to Sections 50079.5 and 50052.5 of the California Health and Safety Code.

Income (Household), Very Low. A household whose gross income does not exceed 50 percent of the area median income for the Santa Rosa Metropolitan Area, adjusted for family size, as published and periodically updated by U.S. Department of Housing and Urban Development and the State Department of Housing and Community Development pursuant to Section 50105 of the California Health and Safety Code.

Initial Subsidy. The fair market value of the home 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. (e.g., X (fair market value of the home to be purchased) Y (the price the moderate-income family paid for the home) + Z (amount of any down payment assistance) = Initial Subsidy).

Located within one-half mile of a Major Transit Stop. Means that any point on a proposed development, for which an applicant seeks a Density Bonus, other incentives or concessions, waivers or reductions of development standards, or a vehicular parking ratio pursuant to this chapter, is within one-half mile of any point on the property on which a major transit stop is located, including any parking lot owned by the transit

authority or other local agency operating a major transit stop. A different definition of "located within one-half mile of a major transit stop," found in Section 20-70.020, may apply if the project falls under certain provisions of Section 65915, subdivision (p), paragraph (2) of the Government Code pertaining to moderate income projects.

Lower Income Student. 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 set forth in paragraph (1) of subdivision (k) of Section 69432.7 of the Education Code. The eligibility of a student for this income level shall be verified by an affidavit, award letter, or letter of eligibility provided by the institution(s) of higher education involved in the proposed Density Bonus Housing Development, 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.

Major Transit Stop. Defined in Section 20-70.020. However, for the purposes of this chapter, a major transit stop also includes major transit stops that are included in the applicable regional transportation plan. See above definition of "located within one-half mile of a major transit stop."

Maximum Allowable Density. The maximum number of dwelling units under the zoning ordinance, specific plan, or land use element of the General Plan, or if a range of density is permitted, the maximum number of units allowed by the specific zoning range, specific plan or land use element of the General Plan applicable

to the project. Where a Housing Development is permitted in a Land Use Designation that does not provide a residential density allowance, the bonus shall be calculated in reference to the residential density allowance designated in the Zoning Code. For a Housing Development located in a General Plan Land Use Designation and Zoning District without a defined residential density limit, the Maximum Allowed Density shall be imputed

by the Housing Development plan, submitted by the Applicant and subject to approval by the Director, which demonstrates the maximum number of dwelling units, without the inclusion of Density Bonus Units or associated Incentives, Concessions, waivers, and reductions, that can be developed on the site in substantial conformance with General Plan policies, and applicable Development Standards and Design Guidelines.

North Santa Rosa Station Area Specific Plan. See Zoning Ordinance Section 20-28.070 (North Station Area (-SA) combining district).

Proportionate Share of Appreciation. The ratio of the local government's initial subsidy as defined above to the fair market value of the home at the time of initial sale. (e.g., X (initial subsidy) ÷ Y (fair market value) = Proportionate Share of Appreciation).

Qualified Nonprofit Housing Corporation. For purposes of this section, a qualified nonprofit housing corporation means a nonprofit corporation that meets all of the following requirements:

Replacement Unit. Housing units that are constructed to replace rental dwelling units that are subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of lowerincome; subject to any other form of rent or price control through a valid exercise of police power; or occupied by lower-income households. Replacement unit requirements also apply to dwelling units subject

to these affordability restrictions that have been vacated or demolished in the five-year period preceding the application. Units subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate-income do not require replacement units to be eligible for a Density Bonus. Residential Density. Notwithstanding Section 20-12.020.C (Calculations), the residential density associated with a Housing Development is the ratio of the number of dwelling units on a lot to the gross lot area in acres, rounded up to the nearest whole number.

School Facility. A school facility as used in this chapter includes public institutions operated by local, state, and federal governments; chartered schools; magnet schools; private schools; parochial or religious schools. School facilities associated with virtual or online schools; after-school learning and tutoring centers or similar facilities; and private home schools are not considered school facilities for the purposes of this chapter. Senior Citizen Housing Development. A residential development restricted for senior citizen residents developed, substantially rehabilitated, or renovated, that has at least 35 dwelling units in compliance with the requirements of Section 51.3 and 51.12 of the California Civil Code, or a mobile home park that limits residency based on age requirements for housing for older persons pursuant to Section 798.76 or 799.5 of the California Civil Code.

Shared Housing Building. A residential or mixed-use structure, with five or more shared housing units and one or more common kitchens and dining areas designed for permanent residence of more than 30 days by

its tenants. The kitchens and dining areas within the shared housing building shall be able to adequately accommodate all residents. A "shared housing building" may include other dwelling units that are not shared housing units, provided that those dwelling units do not occupy more than 25 percent of the floor area of the shared housing building. A shared housing building may include 100 percent shared housing units. A shared

housing building may include incidental commercial uses, provided that those commercial uses are otherwise allowable and are located only on the ground floor or level of the shared housing building closest to the street or sidewalk of the shared housing building.

Shared Housing Unit. One or more habitable rooms, not within another dwelling unit, that includes a bathroom, sink, refrigerator, and microwave, is used for permanent residence, that means the "minimum room area" specified in Section R304 of the California Residential Code (Part 2.5 of Title 24 of the California Code of Regulations) and complies with the definition of "guestroom" in Section R202 of the California Residential Code.

Significant, Adverse Impact. A significant, quantifiable, direct, and unavoidable impact to public health and safety, or the physical environment, or on any real property that is listed or eligible for listing, in the California Register of Historical Resources, based on objective, identified written public health or safety standards, policies, or conditions as they existed on the date the application was deemed complete, and for which there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact without rendering the development unaffordable to lower-income and moderate-income households. Inconsistency with the Zoning Ordinance or General Plan Land Use Designation shall not constitute a specific, adverse impact upon the public health or safety. In Santa Rosa, specific, adverse impacts include, but are not limited to:

• Development within a Preservation District wherein a proposed development Concession or Incentive would irreparably alter a historic resource, either individual or a district, in a manner that is inconsistent with the Secretary of The Interior's Standards for the Treatment of Historic Properties with Guidelines for Preserving, Rehabilitating, Restoring & Reconstructing Historic Buildings .

• • Development on land which does not currently have adequate water or wastewater facilities to service the development, or the provision of such services is infeasible at the level of residential density proposed in the development.

Specialized Housing. A Housing Development for transitional foster youth, as defined in Section 66025.9 of the California Education Code, disabled veterans, as defined in Section 18541 of the Government Code, or homeless persons, as defined in the federal McKinney-Vento Homeless Assistance Act (42 U.S.C. Sec. 11301 et seq.).

Total Units or Total Dwelling Units. A calculation of the number of units* that:

Unobstructed Access. Unobstructed access means a resident of a Housing Development has pedestrian access to a Major Transit Stop or a fixed bus route without encountering natural or constructed impediments including freeways, rivers, mountains, and bodies of water, but does not include residential structures, shopping centers, parking lots, or rails used for transit.

(Ord. 2019-002 § 1; Ord. 2021-014 §§ 4–10; Ord. 2023-006, 6/6/2023; Ord. 2025-001, 1/28/2025)

At the time the Applicant of a proposed Housing Development, seeking a Density Bonus and Concessions or Incentives under this chapter, files a Density Bonus application with the Department the Applicant is required to submit a Density Bonus Worksheet and the following information:

A.

State Density Bonus applications. For a project seeking a Density Bonus pursuant to State law, the following information is required:

1.

Signed and completed Density Bonus application form.

2.

Signed and completed Density Bonus application Submittal checklist.

3.

The location, acreage, residential density, and the maximum number of base units allowed under the Zoning and the Land Use Designation under the General Plan without the Density Bonus.

4.

The total number of the following:

a.

Market rate units in the Base Project;

b.

Affordable Housing units and their targeted income level or other provisions (e.g. land donation), which will demonstrate eligibility for a State Density Bonus under this chapter; and

c.

Density Bonus units to be received, if any (see Section 20-31.040.B (Processing of Density Bonus application))

5.

The requested Concessions or Incentives that will result in identifiable and actual cost reductions to provide for affordable housing costs. This requirement at the time of application does not prevent the applicant from substituting a different Incentive or Concession from what is initially proposed at a later phase of the application.

A clear statement of how the requested Concessions or Incentives result in identifiable and actual cost reductions to provide for affordable housing costs. The information should be sufficiently detailed to enable City staff to examine the conclusions reached by the Applicant.

7.

Projects in areas with no maximum density. The General Plan and Zoning Code include Land Use Designations and corresponding Zoning Districts with no applicable residential density limit. To derive the "maximum allowable density" in these areas, applicants must complete the Maximum Allowable Density Worksheet available in the Planning Division.

B.

Supplemental Density Bonus applications.

1.

A Housing Development requesting a Supplemental Density Bonus shall apply for a Minor Conditional Use Permit pursuant to Chapter 20-52 and subject to the additional findings required by Section 20-31.070.J.

a.

All Supplemental Density Bonus provisions and requirements shall be an in addition to the State Density Bonus provisions outlined in this chapter.

b.

All Supplemental Density Bonus Housing Development projects shall provide affordable housing and other community benefits sufficient to earn the requisite number of Eligibility Points pursuant to Section 20-31.070 (Supplemental Density Bonus).

c.

Supplemental Density Bonuses granted to a Housing Development subject to a Development Plan and Policy Statement shall comply with the requirements of this section, but shall not require a Minor Conditional Use Permit and shall be considered as part of the Development Plan and Policy Statement approval process pursuant to Section 20-26.060 (PD zoning district standards).

2.

Application requirements. In addition to the State Density Bonus application requirements as outlined in subsection A, the Supplemental Density Bonus application shall clearly identify the total number of the following:

a.

Housing units in the Base Project;

b.

Affordable Housing units and the targeted income level provided as a share of the units in the Base Project to qualify for a State Density Bonus, or identification of other qualifying criteria for the State Density Bonus;

c.

Affordable Housing units and the targeted income levels provided as a share of the units in the Base Project in addition to those provided in subsection A, to generate at least 60 percent of the required Eligibility Points for the requested Supplemental Density Bonus as outlined in Section 20-31.070 (Supplemental Density Bonus).

d.

Any additional Affordable Housing units and the targeted income levels provided as a share of the units in Base Project, or specified community Benefits pursuant to Section 20-31.070 (Supplemental Density Bonus) to generate the remaining 40 percent of the required Eligibility Points for the requested Supplemental Density Bonus as outlined in Section 20-31.070 (Supplemental Density Bonus).

Housing Developments requesting a Supplemental Density Bonus that generate the requisite number of Eligibility Points shall receive a total of three Incentives or Concessions inclusive of Incentives and Concessions received under State Density Bonus provisions. No Housing Development requesting a Supplemental Density Bonus shall receive more than three Incentives or Concessions. Applications for a Supplemental Density Bonus shall identify any additional Concessions or Incentives that will result in identifiable and actual cost reductions to provide for affordable housing costs associated with the Supplemental Density Bonus, if not already identified in the State Density Bonus application.

a.

Requested Incentives or Concessions to qualify for a State Density Bonus can be utilized to offset the cost of affordable housing associated with establishing eligibility for a Supplemental Density Bonus.

b.

Projects that qualify for a State Density Bonus but are not entitled to Incentives or Concessions, such as land donations and senior citizen projects, shall be eligible for three Incentives or Concessions if eligible for a Supplemental Density Bonus.

c.

Cost Reduction Statement. A clear statement of how requested Concessions or Incentives result in identifiable and actual cost reductions to provide for affordable housing costs, if not already defined in the application for a State Density Bonus. The information should be sufficiently detailed to enable City staff to examine the conclusions reached by the Applicant.

(Ord. 2019-002 § 1; Ord. 2021-014 §§ 11–14; Ord. 2023-006, 6/6/2023)

A.

Concurrent processing. Once deemed complete, the Density Bonus application shall be processed, and determinations made concurrent with the planning entitlement(s) for the Housing Development. B.

Applicants are entitled to accept a lesser percentage of Density Bonus, including, but not limited to, no increase in density than they are otherwise eligible to receive pursuant to this chapter and California Government Code Section 65915. The amount of density increase, if any, that is accepted by the applicant shall not reduce or otherwise impact eligibility for requested Incentives and Concessions, waivers or reductions associated with an eligible project.

C.

Review authority. A request for a Density Bonus will be reviewed by the Director, or the same review authority as the Housing Development's other entitlements, if applicable. The reviewing authority shall not grant the Density Bonus and requested Incentive(s) or Concession(s) unless the findings in Section 20-31.090.B (Available Incentives and Concessions) are made.

D.

Priority processing. A Housing Development including at least 20 percent of total units affordable to lower income households, with the affordability maintained through an agreement with the Housing Authority or another governmental agency, shall be entitled to priority processing. Priority processing shall mean a timeline for review of the Housing Development and all associated applications as mutually agreed to by the City and the Applicant.

E.

Application for Density Bonus Housing Agreement. Once the proposed Housing Development has received its approval for a State or Supplemental Density Bonus, as described above, the Applicant shall file an application, including the payment of any processing fees with the Housing Authority, for approval and

finalization of the Density Bonus Housing Agreement in compliance with the requirements set forth in Section 20-31.100 (General Provisions for Density Bonuses and Incentives or Concessions).

(Ord. 2019-002 § 1; Ord. 2023-006, 6/6/2023; Ord. 2025-001, 1/28/2025; Ord. 2025-011, 9/30/2025)

A.

The City shall consider a Density Bonus and provide Incentives or Concessions, as described in Section 2031.090 (Available Incentives and Concessions), when an Applicant for a Housing Development seeks and agrees to construct a Housing Development that will contain at least one of the following.

1.

Low-income projects. Ten percent of the total units of a Housing Development, including a shared housing building development, strictly for low-income households as defined herein;

2.

Very low-income projects. Five percent of the total units of a Housing Development, including a shared housing building development, strictly for very low-income households as defined herein.

3.

Senior housing projects. A Senior Citizen Housing Development, as defined herein. For purposes of this paragraph, "development" includes a shared housing building development.

For-sale projects. Ten percent of the total dwelling units in a Common Interest Development for persons and families of moderate-income households as defined herein, provided that all units in the development are offered to the public for purchase.

5.

Specialized housing projects. Ten percent of the total units of a Housing Development for Specialized Housing, as defined in Section 20-31.020. The units described in this subparagraph shall be subject to a recorded affordability restriction of 55 years and shall be provided at the same affordability level as very lowincome units.

6.

Commercial projects. When an applicant of an approved commercial project has entered into an agreement for partnered housing to contribute affordable housing through a joint project or two separate projects encompassing affordable housing, the City shall grant to the Applicant development intensity bonuses relative the maximum allowances defined in the General Plan, or Zoning Ordinance if the General Plan does not provide a maximum allowance, as prescribed in California Government Code Section 65915.7 that may include:

a.

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

d.

Up to a 20 percent reduction in minimum parking requirements.

e.

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

f.

An exception to a Zoning Code or other land use regulation.

Redevelopment of existing dwelling units. A Housing Development shall be ineligible for a Density Bonus, and any associated Incentives or Concessions, if the Housing Development involves the redevelopment of existing dwelling units, or dwelling units that have been vacated or demolished in the five-year period preceding the application, that have been subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to lower-income households or that have been occupied by lower or very low income households, unless the project provides replacement units, and either of the following applies:

a.

The proposed Housing Development, inclusive of the replacement units, contains Affordable Housing units at the percentages required to establish eligibility for a Density Bonus as set forth in Section 20-31.040 (Processing Density Bonus Application); or

b.

Each unit in the Housing Development, exclusive of a manager's unit or units, is affordable to, and occupied by a lower-income household.

8.

Student housing development. A student housing development that sets aside 20 percent of the total units for lower income students, subject to the following requirements:

a.

All units in the Student Housing Development will be used exclusively for undergraduate, graduate, or professional students enrolled full time 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 subclause, the Applicant for the Housing Development shall, as a condition of receiving a Certificate of Occupancy, provide evidence to the City that the Applicant has 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 from that institution(s). An Operating Agreement or Master Lease entered into pursuant to this subclause is not violated or breached if, in any subsequent year, there are not sufficient students enrolled in the institution(s) to fill all units in the Student Housing Development.

b.

The applicable 20-percent of units in the Housing Development will be used for Lower Income Students.

c.

The applicable 20-percent of units shall be subject to a recorded affordability restriction of 55 years. d.

The rent provided in the applicable units for Lower Income Students shall be calculated at 30 percent of 65 percent of the Area Median Income for a single-room occupancy unit type.

e.

The Housing 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. f.

For purposes of calculating a Density Bonus granted pursuant to this subparagraph, the term "unit" as used in this section means one rental bed and its pro rata share of associated common area facilities. 9.

One Hundred Percent Lower- and Moderate-Income Projects. One hundred percent of all units in the development, including total units and Density Bonus units, but exclusive of a manager's unit or units, are for

lower income households, as defined herein, 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 herein. For purposes of this subparagraph, "development" includes a shared housing building development.

B.

Rental projects and replacement units. If the proposed development is rental units, the replacement units shall be subject to the provisions of California Government Code Section 65915(c):

1.

Fractional units. All replacement calculations resulting in fractional units or number shall be rounded up to the next whole number.

2.

Rental affordability term. If the replacement units will be rental dwelling units, these units shall be subject to a recorded affordability restriction of at least 55 years. If the proposed development is for-sale units, the units replaced shall be subject to Section 20-31.110 (Density Bonus Agreement and Terms). C.

For-sale projects and replacement units. If the Housing Development is for-sale units, the units replaced shall be subject to all the following:

1.

The initial occupant of all for-sale units that qualified the applicant for the award of the Density Bonus shall be persons and families of very low, low, or moderate income, as defined herein for density bonus eligibility.

2.

The units are offered at an affordable housing cost at the appropriate income level as defined in Section 2031.020 (Definitions).

3.

The applicant and City shall establish an equity sharing agreement, unless it is in conflict with the requirements of another public funding source or law or may defer to the recapture provisions of the public funding source as outlined in Section 20-31.110 (Density Bonus Agreement and Terms).

D.

Subsections B, C, and D do not apply to an applicant seeking a density bonus for a proposed Housing Development if its application was submitted or processed before January 1, 2015.

E.

When an applicant proposes to construct a housing development that conforms to the requirements of paragraph 1 or 2 of subsection A of this section that is a shared housing building, the City shall not require any minimum unit size requirements or minimum bedroom requirements that are in conflict with permissible Shared Housing Buildings and Shared Housing Units, as defined in this chapter.