§ 36.370

This division provides incentives for the development of specific housing types that are affordable to the types of households and qualifying residents identified in SPMC 36.370.020 (Eligibility for Affordable Housing Incentives), including, but not limited to, very low income, lower income, moderate income, and senior households, in accordance with Government Code Section 65915. The provisions of this division shall be interpreted to fulfill the requirements of Government Code Section 65915, as the same may be amended from time to time. All references to Government Code Section 65915 shall be interpreted to include amendments to that section as may be enacted by the state from time to time. If any provision of this division should conflict with a provision of such statute, the statutory provision shall prevail.

(Ord. No. 2252 § 4, 2013; Ord. No. 2380 § 3, 2023.)

A. A housing development that qualifies for a density bonus and other incentives pursuant to Government Code Section 65915 shall be eligible for the affordable housing incentives identified in this division. The applicant shall comply with all requirements stated in Government Code Section 65915.

B. Except as otherwise required by Government Code Section 65915, density bonus units shall not be included when calculating the total number of housing units for purposes of determining the number of affordable units that qualifies the housing development for a density bonus.

C. An applicant shall not receive a density bonus or any other affordable housing incentive under this division if the housing development would be excluded under Government Code Section 65915, which includes, but is not limited to, projects that fail to “replace” existing housing units, as required by State law.

(Ord. No. 2252 § 4, 2013; Ord. No. 2380 § 3, 2023.)

A. For a housing development qualifying pursuant to the requirements of Government Code Section 65915 the City shall grant a density bonus in an amount specified by Government Code Section 65915.

B. For the purpose of calculating the density bonus, the “maximum allowable residential density” shall be as stated in Government Code Section 65915.

C. Each component of any density calculation, including base density and bonus density, that results in a fractional unit shall be separately rounded up to the next whole number.

(Ord. No. 2252 § 4, 2013. Formerly 36.370.040; Ord. No. 2380 § 3, 2023.)

A. If requested by the applicant, a project that qualifies for a density bonus in accordance with SPMC 36.370.020(A) also shall be entitled to the number of incentives or concessions as set forth in Government Code Section 65915(d). A request for a concession(s) or incentive(s) should be accompanied by documentation demonstrating that the concession(s) or incentive(s) results in identifiable and actual cost reductions to provide for affordable housing costs, as further described in Government Code Section 65915(d)(1)(A). The applicant is entitled to the concession(s) or incentive(s) requested unless the City makes a written finding, based upon substantial evidence, of any of the relevant written findings as stated in Government Code Section 65915(d)(1).

B. Senior citizen housing developments that qualify for a density bonus solely pursuant to Government Code Section 65915(b)(1)(C) shall not receive any incentives or concessions, unless Government Code Section 65915 is amended to specifically require that local agencies grant incentives or concessions for senior citizen housing developments.

C. For the purposes of this division, incentive and/or concession shall have the same meaning as the term “concession or incentive” as defined in Government Code Section 65915(k).

(Ord. No. 2252 § 4, 2013; Ord. No. 2380 § 3, 2023. Formerly 36.370.030.)

A. Except as restricted by Government Code Section 65915, the applicant for a project that qualifies for a density bonus in accordance with SPMC 36.370.020 may submit a proposal for the waiver or reduction of development standards that will have the effect of physically precluding the construction of a development meeting the criteria of Government Code Section 65915(b), at the densities or with the concessions or incentives permitted by Government Code Section 65915. The applicant may request a meeting with the City to

discuss any waiver requests. A request for a waiver or reduction of development standards should be accompanied by documentation demonstrating that the waiver or reduction is physically necessary to construct the housing development with the additional density permitted by State law and/or incorporating any incentives or concessions required to be granted.

B. The applicant is entitled to the waiver(s) requested unless the City makes a written finding, based upon substantial evidence, of any of the relevant written findings as stated in Government Code Section 65915(e).

C. As used in this section, “development standard” shall have the same meaning as the term is defined in Government Code Section 65915(o)(2).

(Ord. No. 2380 § 3, 2023.)

An applicant proposing a project that complies with the requirements found in SPMC 36.370.020 may request, and is entitled to, the parking ratios identified by Government Code Section 65915(p).

(Ord. No. 2252 § 4, 2013; Ord. No. 2380 § 3, 2023. Formerly 36.370.070.)

A. Land donation bonus. An applicant proposing a tentative subdivision map, parcel map, or other residential development that donates land to the City as provided for in this section shall be entitled to a density bonus as provided for in this section.

B. Requirements for bonus. In order to grant a bonus for the donation, all of the requirements set forth in Government Code Section 65915(g)(2) must be met.

C. Density bonus allowance for land donations. If an applicant donates land in compliance with requirements set forth in subsection (B) of this section, a density bonus as set forth in Government Code Section 65915(g)(1) shall be granted.

(Ord. No. 2252 § 4, 2013; Ord. No. 2380 § 3, 2023. Formerly 36.370.050.)

A. An applicant proposing to construct a housing development that conforms to the requirements of Government Code Section 65915(b) and includes a childcare facility that will be located on the premises of, as part of, or adjacent to the project, the City shall grant either an additional density bonus or a concession or incentive as provided for in Government Code Section 65915(h)(1).

B. A proposed project shall be eligible for the density bonus or concession or incentive described in this section only if the project is made subject to, and the project applicant agrees to adhere to the conditions of approvals set forth in, Government Code Section 65915(h)(2).

C. As used in this section, “childcare facility” shall have the same meaning as the term is defined in Government Code Section 65915.

(Ord. No. 2252 § 4, 2013; Ord. No. 2380 § 3, 2023. Formerly 36.370.060.)

A. Location/dispersal of units. The designated dwelling units reserved as affordable units shall contain on average the same number of bedrooms as the market rate units. The designated dwelling units shall be dispersed throughout the development, and shall have the same materials and finish quality as the market rate units, and shall include a dishwasher, and washer and dryer if those appliances are provided in the market rate units.

B. Alternative development site. The review authority may authorize some or all of the designated dwelling units reserved as affordable units associated with one housing development to be produced and operated on an alternative development site, where it determines that the public interest would be more effectively served. Affordable housing units authorized on an alternate site shall be constructed and made available for occupancy prior to or at the same time as the market rate units are constructed and made available for occupancy, unless otherwise approved by the review authority.

(Ord. No. 2252 § 4, 2013; Ord. No. 2380 § 3, 2023. Formerly 36.370.080.)

A. Density bonus review or affordable housing review. A request for a density bonus, including any requests for incentives and/or concessions or waivers, shall be reviewed administratively by the Director. If a project that includes a request for a density bonus is also subject to another discretionary entitlement request that requires approval by the Planning Commission or City Council, the density bonus request, including any requests for incentives and/or concessions or waivers, shall be reviewed by the Planning Commission or City Council through the affordable housing review process.

B. Application and filing processing. An application for a density bonus, incentive(s) and/or concession(s), or waiver(s), shall be filed in compliance with SPMC 36.400 (Application Filing and Processing).

C. Density bonus review. If a density bonus is requested for a project that is subject only to ministerial review and approval, the Director shall process and grant the density bonus, alternative parking standards, and any incentives and/or concessions and waivers for that proposed project; provided, that the Director finds that the project is in compliance with the requirements of Government Code Section 65915 and the provisions of this division. No public hearing or noticing is required for such requests. Solely the applicant may appeal the decision of the Director to the City Manager on the grounds of an error in the application of this division or State law. In making such an appeal, the applicant shall adequately describe the error in the application of this division or State law.

D. Affordable housing review. The Planning Commission shall conduct an affordable housing review for proposed density bonus projects that include any discretionary approvals concurrently with the Commission’s review of the other discretionary approval(s). Following proper noticing and a public hearing pursuant to Division 36.630 (Public Hearings), the Planning Commission, if it finds that the proposed project complies with applicable sections of this division and State law, shall grant the density bonus, reduced parking standards, incentives and/or concessions, and waivers requested, unless it makes necessary findings as set forth in this division and State law to reject the requested density bonus, reduced parking standards, incentives and/or concession, waivers, or any combination thereof.

E. Decision. Notice of the Director or Planning Commission decisions pursuant to this division shall be mailed to the project applicant within five days of the decision. The granting of a request for a density bonus, incentive, or concession pursuant to this division shall not be effective until an affordable housing covenant has been recorded in compliance with SPMC 36.370.110.

F. Appeal. A decision for an affordable housing review may be appealed in compliance with SPMC 36.610 (Appeals).

G. Continued availability. All projects for which a density bonus review and/or affordable housing review is granted by the appropriate review authority must maintain continued affordability of the designated units pursuant to State law.

H. Pursuant to SPMC 36.370.110 (Affordable Housing Covenant), the Director is authorized to execute the necessary agreement which shall include recordation of a covenant or other document satisfactory to the City Attorney prior to the issuance of a building permit.

(Ord. No. 2252 § 4, 2013; Ord. No. 2380 § 3, 2023. Formerly 36.370.090.)

Following the granting of a density bonus request or an affordable housing review in compliance with SPMC 36.370.100 (Processing of Density Bonus Requests and Affordable Housing Review), the applicant shall enter into an agreement with the City in a form approved by the Director and City Attorney to ensure the continued affordability of all affordable units or the continued reservation of such units for qualifying senior citizens in accordance with Government Code Section 65915. Prior to receiving a building permit for any project that receives a density bonus or any incentive, concession, waiver, or reduction of development standards pursuant to this division, such agreement shall be recorded as a covenant against the property.

In order to ensure the affordability of housing pursuant to this division, the covenant shall include, but not be limited to, the following provisions with respect to the long term affordability of the residential project:

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

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 designated units without 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 moderate, low and very low-income households, as published by the United States Department of Housing and Urban Development (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 required 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 deed restrictions, the City Attorney shall, if compliance is ordered by a court of competent jurisdiction, take all action that may be allowed by law to recover all of the City’s costs of action including legal services;

G. In the case of for-sale housing developments, the affordable housing covenant shall provide for the following conditions governing the initial sale and use of designated dwelling units during the applicable use restriction period:

1. Designated dwelling units shall be owner-occupied by eligible very low, low, or moderate income households, or by qualified residents in the case of senior housing.

2. The applicable restriction period in compliance with the provisions of this division and State law.

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

• a. Restricts the sale of the unit in compliance with this division during the applicable use restriction period,

• b. Contains provisions as the City may require to ensure continued compliance with this division and State law, and

c. Shall be recorded against the parcel containing the designated dwelling unit;

H. In the case of rental housing developments, the affordable housing covenant shall provide for the following conditions governing the use of designated dwelling units during the use restriction period:

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

2. Provisions requiring owners to annually verify tenant incomes and maintain books and records to demonstrate compliance with this division,

3. 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 number of bedrooms and monthly rent or cost of each unit, and

4. The applicable use restriction period in compliance with this division and State law;

I. The covenant shall include the following information:

1. The total number of units approved for the housing development, including the number of designated dwelling units,

2. 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,

3. The marketing plan for the affordable units,

4. The location, unit sizes (square feet), and number of bedrooms of the designated dwelling units,

5. Duration of the use restrictions for designated dwelling units, in compliance with this division and State law,

6. A schedule for completion and occupancy of the designated dwelling units,

7. A description of the additional incentive(s) being provided by the City,

8. A description of the remedies for breach of the affordable housing covenant by the owners, developers, and/or successor(s)-ininterest of the project, and

9. Other information as necessary for the City to verify the implementation of, and compliance with, this division;

• J. Execution of covenant.

1. Following agreement on the terms of the covenant by all parties, the City shall record the completed covenant on the parcels designated for the construction of designated dwelling units, at the Los Angeles County Registrar Recorder’s/County Clerk’s Office.

2. The approval and recordation shall take place prior to the final map or, where a map is not being processed, before issuance of building permits for the units.

3. The covenant shall be binding to all future owners, developers, and/or successors-in-interest.

(Ord. No. 2252 § 4, 2013; Ord. No. 2380 § 3, 2023. Formerly 36.370.100.)

Division 36.375. Inclusionary Housing Requirements

Sections:

36.375.010 Purpose. 36.375.020 Applicability.

36.375.030 Exemptions.

36.375.040 Definitions.