Chapter 18.212 — Density Bonuses, Concessions and Incentives

As required by State law (Government Code Section 65915), this Chapter offers density bonus, concessions and incentives to developers for providing housing that is affordable to the types of households and qualifying residents identified in Section 18.32.020 (Eligibility for Bonus, Concessions and Incentives), below. The Town shall provide the applicant density bonuses, concessions, and/or incentives as prescribed in this Chapter. In offering these bonuses, concessions and incentives, this Chapter is intended to implement the requirements of State law (Government Code Sections 65302, 65913, and 65915, et seq.) If any section of this chapter conflicts with Government Code Section 65915 or other applicable State law, State law shall supersede this chapter.

A density bonus shall mean a density increase over the otherwise maximum allowable residential density as of the date of application by the applicant to the Town. Maximum allowable residential density shall mean the density allowed under the zoning ordinance, or if a range of density is permitted, means the maximum allowable density for the specific zoning range applicable to the project.

• A. Request . In order to be eligible for a density bonus, the applicant shall file a request with the required land use permit application identifying the requested density bonus. With review of the associated land use permit application, the Town shall notify the applicant of the following:

  1. The amount of density bonus for which the applicant is eligible

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2. If the applicant requests a parking ratio pursuant to this section, the parking ratio for which the applicant is eligible; and

3. If the applicant requests incentives or concessions or waivers or reductions of the development standards, the applicant shall be notified if adequate information has been provided to make a determination as to those requests.

B. Calculations and location.

1. Any density bonus granted for a residential project shall not be included when determining the total number of housing units for the purpose of calculating the percentage of affordable housing units.

2. All density calculations resulting in fractional units shall be rounded up to the next whole number.

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

4. The density bonus shall be permitted in geographic areas of the proposed residential development other than the areas where the units for the target households are located.

5. Each residential project is entitled to only one density bonus. Where a residential project qualifies for a state density bonus under more than one category as described in Section 18.212.050 (Eligibility for Bonus, Concessions and/or Incentives), the category pursuant to which the density bonus shall be granted shall be elected by the applicant, and density bonuses from more than one category may not be combined.

6. Density bonus units authorized by this section shall not be included when determining the number of units required to qualify for the density bonus. When calculating the required number of units necessary to qualify for the density bonus, any calculations resulting in fractional dwelling units shall be rounded to the next whole number.

• C. Inclusionary housing . The units approved by a density bonus granted for a residential project shall not be subject to the inclusionary requirements of Chapter 18.214 (Inclusionary Housing). The affordable housing inclusionary and workforce housing requirements of Chapter 18.214 (Inclusionary Housing) and Chapter 18.216 (Workforce Housing) shall be included in the count for eligibility for a density bonus if the units meet the affordability criteria outlined in this section. In general, if the inclusionary housing requirements have been met, a density bonus would be available. For example, a project that is allocating 15% of the units to very low income units, as required by the inclusionary housing ordinance, would be allowed a 50% density bonus (Section 18.212.060 – Bonus, Concessions and/or Incentives for Very Low Income Residential Project).

• D. General Plan and Development Code Consistency . The granting of a density bonus shall not be interpreted, in and of itself, to require a general plan amendment, zoning change, or other discretionary approval.

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• E. Maximum Cumulative for Density Bonus . The cumulative total of all density bonuses granted under this Chapter shall not exceed 50% over the otherwise maximum allowable residential density, except as otherwise provided in this Chapter.

• F. An applicant shall be ineligible for a density bonus or any other incentives or concessions if the housing development is proposed on any property that includes a parcel or parcels on which rental dwelling units are or, if the dwelling units have been vacated or demolished in the fiveyear period preceding the application, have been subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of lower or very low income; subject to any other public form of rent or price control; occupied by lower or very low income households, unless the housing development replaces those units pursuant to Government Code Section 65915.

• G. Findings and Decision . The review authority shall grant a density bonus over the otherwise maximum allowable residential density as of the date of application by the applicant to the Town in accordance with this Chapter, unless the review authority makes the following finding based upon substantial evidence:

  1. The density bonus is not consistent with the applicable provisions of Section 65915 of the Government Code and this Development Code.

• A. Request . An applicant may request incentives pursuant to this section only when the residential project is eligible for, and the applicant requests a density bonus, pursuant to Section 18.212.020 (Density Bonus).In order to be eligible for a concession or incentive in accordance with this section, the applicant shall file a request in conjunction with the required land use permit application and density bonus request identifying the requested density bonus, along with the factual and legal basis for the request, the requested incentive(s), any requested waivers, reductions, or modifications of development standards requested by the applicant. The applicant shall also provide written documentation showing that the concession or incentive is necessary to provide for affordable housing costs or rents.

• B. Allowed concessions and incentives . The following may be allowed as a concession or incentive in accordance with this section:

  1. A reduction in site development standards or a modification of zoning code requirements or architectural design requirements that exceeds the minimum building standards approved by the California Building Standards Commission as provided in Part 2.5 (commencing with Section 18901) of Division 13 of the Health and Safety Code, including, but not limited to, a reduction in setback and square footage requirements and in the ratio of vehicular parking spaces that would otherwise be required and results in identifiable, financially sufficient, and actual cost reductions to provide for affordable housing costs or rents. An applicant may be required to submit a pro forma that demonstrates that any requested incentive results in identifiable, financially sufficient, and actual cost reductions to the residential project. The cost of reviewing any required pro forma data, including but not limited to the cost to the Town of hiring a consultant to review the pro forma, shall be borne by the applicant;

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2. Approval of mixed use zoning in conjunction with the housing project if commercial, office, industrial, or other land uses will reduce the cost of the housing development and if the commercial, office, industrial, or other land uses are compatible with the housing project and the existing or planned development in the area where the proposed housing project will be located; and

3. Other regulatory incentives or concessions proposed by the developer or the Town that result in identifiable, financially sufficient, and actual cost reductions.

The Town may, but is not required to, provide direct financial incentives for the housing development, including the provision of publicly owned land, by the Town, or the deferment of fees or dedication requirements.

• C. General Plan and Development Code consistency . The granting of a density bonus shall not be interpreted, in and of itself, to require a General Plan amendment, zoning change, or other discretionary approval.

• D. Findings and decision . The review authority shall grant a concession(s) and/or incentive(s), unless the review authority makes one or more of the following findings based upon substantial evidence:

  1. The concession or incentive is not consistent with the applicable provisions of Section 65915 of the Government Code;

  2. The concession or incentive does not result in identifiable, financially sufficient, and/or actual cost reductions;

  3. The concession or incentive is not required in order 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;

  4. The concession or incentive would have a specific adverse impact, as defined in paragraph (2) of subdivision (d) of Section 65589.5, upon public health and safety or the physical environment for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact without rendering the development unaffordable to low- and moderate-income households;

  5. The concession or incentive would have an adverse impact on any real property that is listed in the California Register of Historical Resources;

  6. The concession or incentive would be contrary to state or federal law.

• A. Request . In order to be eligible for a parking reduction concession or a development standard waiver or modification in accordance with this section, the applicant shall file a request in conjunction with the required land use permit application and density bonus request identifying the requested incentive(s), any requested waivers, reductions, or modifications of development standards. For a development standard waiver or modification concession, the applicant shall also provide written documentation showing that the application of the development standard

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will have the effect of physically precluding the construction of the proposed residential project at the densities or with the concessions or incentives permitted by this Chapter and showing the waiver or modification of the development standard is necessary to make the housing units physically feasible.

• B. Parking reduction . The review authority shall reduce the off-street parking requirements for the residential project as follows:

  1. One off-street space for each studio or one-bedroom unit;

  2. One and one-half off-street spaces for each two- or three-bedroom unit;

  3. Two and one-half off-street spaces for each unit with four or more bedrooms;

  4. These off-street parking requirements are inclusive of accessible and guest parking;

  5. If the total number of parking spaces required for the residential project is other than a whole number, the number shall be rounded up to the next whole number;

  6. The residential project may provide the off-street parking through tandem parking or uncovered parking;

  7. These off-street parking requirements apply to the entire project including market rate units;

  8. A developer may request a reduction in the required parking demand to 0.5 space per unit, inclusive of parking for persons with a disability and guests, if the project is located within one-half mile of a major transit stop, as defined in subdivision (b) of Section 21155 of the Public Resources Code, and there is unobstructed access to the major transit stop from the development, and a development includes at least 11 percent (11%) very low income units or at least 20 percent (20%) low-income units.

  9. A developer may request that the Town impose no minimum parking requirement for a development if the following applies:

• a. The development consists solely of rental units, exclusive of a managers unit or units, with an affordable housing cost to lower income families, as provided in Section 50052.5 of the Health and Safety Code, and 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 onehalf mile, to fixed bus route service that operates at least eight times per day; or

  - b. The development consists solely of rental units, exclusive of a managers unit or units, with an affordable housing cost to lower income families, as provided in Section 50052.5 of the Health and Safety Code, and either of the following applies: 
  
     - i. 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;
  

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• ii. The development is a for-rent housing development for individuals who are 62 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.

10. If the Town or an independent consultant has conducted an area-wide or jurisdictionwide parking study in the last seven years, then the Town may impose a higher vehicular parking ratio not to exceed the ratio described in Subsection B(1) through (4), based on 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 Town shall pay the costs of any new study and shall make findings supporting the need for the higher ratio.

These parking reductions are exclusive of concessions and incentives approved pursuant to Section 18.212.030 (Concessions and Incentives). The applicant may request additional parking concessions or incentives beyond those provided by this section.

C. Development standard waiver or modification concession.

1. Development standard. A development standard includes a site or construction condition, including, but not limited to, a height limitation, a setback requirement, a floor area ratio, an on-site open space requirement, or a parking ratio that applies to a residential development pursuant to any ordinance, general plan element, specific plan, charter, or other local condition, law, policy, resolution, or regulation.

rd. A development standard includes a site or construction condition, including, but not limited to, a height limitation, a setback requirement, a floor area ratio, an on-site open space requirement, or a parking ratio that applies to a residential development pursuant to any ordinance, general plan element, specific plan, charter, or other local condition, law, policy, resolution, or regulation.

2. An applicant may seek a waiver of any development standards that will physically preclude the construction of a residential project with the requested density bonus and incentives permitted by this chapter. The applicant shall bear the burden of demonstrating that the development standards that are requested to be waived will have the effect of physically precluding the construction of the residential project with the density bonus and incentives.

3. A proposal for the waiver or reduction of development standards pursuant to this section shall neither reduce nor increase the number of concessions or incentives to which the applicant is entitled pursuant to Section 18.212.030 (Concessions and Incentives).

• D. Findings and decision . The review authority shall grant a waiver or modification to a development standard, unless the review authority makes one or more of the following findings based upon substantial evidence:

  1. The waiver or modification of the development standard is not consistent with the applicable provisions of Section 65915 of the Government Code;

  2. The application of the development standard will not have the effect of physically precluding the construction of the proposed residential project at the densities or with the concessions or incentives permitted by this Chapter;

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3. The waiver or modification of the development standard would have a specific adverse impact, as defined in paragraph (2) of subdivision (d) of Section 65589.5, upon public health and safety or the physical environment for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact without rendering the development unaffordable to low- and moderate-income households;

4. The waiver or modification of the development standard would have an adverse impact on any real property that is listed in the California Register of Historical Resources;

5. The waiver or modification of the development standard would be contrary to State or Federal law.

In order to be eligible for a density bonus, concessions and/or incentives as provided for by this Chapter, a proposed residential project shall comply with the following.

• A. Consist of five or more dwelling units;

• B. Be designed and constructed to comply with one or more of the following:

  1. A minimum of five percent (5%) of the total number of proposed dwelling units are for very low income households, as defined in Health and Safety Code Section 50105. Projects that comply with this requirement shall hereafter be referred to in this Chapter as “Very Low Income Residential Project.”

  2. A minimum of ten percent (10%) of the total number of proposed dwelling units are for lower income households, as defined in Health and Safety Code Section 50079.5. Projects that comply with this requirement shall hereafter be referred to in this Chapter as “Lower Income Residential Project.”

  3. A minimum of ten percent (10%) of the total number of proposed dwelling units in a condominium project as defined in Government Code Section 65915(g) or a planned development as defined in Civil Code Section 1351(k) are for persons and families of moderate income as defined in Health and Safety Code Section 50093 and all units in the development are offered to the public for purchase. Projects that comply with this requirement shall hereafter be referred to in this Chapter as “Moderate Income Residential Project.”

  4. For a proposed residential project to convert apartments to a condominium project, a minimum of 33% of the total number of proposed condominium units are for persons and families of low or moderate income as defined in Health and Safety Code Section 50093 or a minimum of 15% of the total number of proposed condominium units are for lower income households as defined in Health and Safety Code Section 50079.5. Projects that comply with this requirement shall hereafter be referred to in this Chapter as “Condominium Conversion Residential Project.”

  5. The proposed residential project is a senior citizen housing development as defined in Section 51.3 of the Civil Code or a mobile home park that limits residence based on age requirements for housing for older persons pursuant to Section 798.76 or 799.5 of the Civil Code. Projects that comply with this requirement shall hereafter be referred to in this Chapter as “Senior Citizen Housing Residential Project.”

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6. The applicant donates land to the Town of Truckee or its designee in accordance with Section 18.212.110.A (Additional Eligibility). Projects that comply with this requirement shall hereafter be referred to in this Chapter as “Land Donation Residential Project.”

7. The applicant constructs a child care facility as part of a proposed very low, lower, or moderate income residential project in accordance with Section 18.212.120.A (Additional Eligibility). Projects that comply with this requirement shall hereafter be referred to in this Chapter as “Child Care Residential Project.”

   8. A minimum of ten percent (10%) of the total number of proposed dwelling units in a housing development are for transitional foster youth, as defined in Section 66025.9 of the Education Code, disabled veterans, as defined in Section 18541, or homeless persons, as defined in the federal McKinney-Vento Homeless Assistance Act (42 U.S.C. Sec. 11301 et seq.). Projects that comply with this requirement shall hereafter be referred to in this Chapter as “Transitional Residential Project.”

   9. One hundred percent (100%) of the total units, exclusive of a manager’s unit or units, are available to lower income households, as defined by Section 50079.5 of the Health and Safety Code, except that up to 20 percent of the total units in the development may be for moderate-income households, as defined in Section 50053 of the Health and Safety Code. Projects that comply with this requirement shall hereafter be referred to in this Chapter as “100 Percent Affordable Residential Project.”

   10. Twenty percent (20%) of the total units are in a housing development are for lower income students. All units in the housing development will be used exclusively for undergraduate, graduate or professional students enrolled full time in an institution of higher education accredited by the Western Association of Schools and Colleges or the Accrediting Commission for Community and Junior Colleges. Projects that comply with this requirement shall hereafter be referred to in this Chapter as “Student Housing Project.”

   11. A commercial development has entered into an agreement for partnered housing to contribute affordable housing through a joint project or two separate projects encompassing affordable housing. A minimum of thirty percent (30%) of the total units of the partnered housing shall be for low-income households or at least fifteen percent (15%) of the total units are for very low-income households. Projects that comply with this requirement shall hereafter be referred to in this Chapter as “Partnered Commercial Project.”

• C. Comply with all applicable provisions of this Development Code.

The granting of a density bonus, concession and/or incentive for a proposed Very Low Income Residential Project shall comply with the following.

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• A. Additional Eligibility . In addition to the requirements of Section 18.212.050.B.1, a Very Low Income Residential Project shall comply with all of the following in order to be eligible for a density bonus, concessions and/or incentives:

  1. The applicant shall agree to the continued affordability of all very low income density bonus units for 55 years or a longer period of time if required by the construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy program.

  2. The units targeted for very low income households shall be affordable at a rent calculated in accordance with Section 18.210.050.A (Affordable Rent) or at a sales price calculated in accordance with Section 18.210.050.B (Affordable Sales Price).

  3. The applicant shall enter into and record an affordable housing agreement as set forth in Section 18.210.090 (Affordable Housing Agreement).

• B. Density Bonus . The review authority shall grant a density bonus for a Very Low Income Residential Project in accordance with Section 18.212.020 (Density Bonus) and the following:

  1. The amount of the density increase shall be consistent with Table 7-1, unless the applicant requests a lesser density increase; and

TABLE 7-1

DENSITY BONUS PERCENTAGE ALLOWANCE FOR VERY LOW INCOME RESIDENTIAL PROJECTS

2. An additional density bonus shall be granted for housing developments that provide additional rental or for-sale units for very low income households or moderate income households in compliance Section 18.212.170 (Additional Density Bonus).

3. If the applicant requests a density bonus for a Very Low Income Residential Project in accordance with this section, the applicant shall not be eligible for a density bonus per Sections 18.212.070 (Bonus, Concessions and/or Incentives for Lower Income Residential Project), 18.212.080 (Bonus, Concessions and/or Incentives for Moderate Income Residential Project), or 18.212.100 (Bonus, Concessions and/or Incentives for Senior Citizen Residential Project).

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• C. Concession or Incentive . The review authority shall grant concessions and/or incentives for a Very Low Income Residential Project in accordance with Section 18.212.030 (Concessions and Incentives) and the following:

  1. The review authority shall grant the following number of incentives or concessions:

• a. One incentive or concession for projects that include at least five percent (5%) of the dwelling units for very low income households;

  - b. Two incentives or concessions for projects that include at least ten percent (10%) of the dwelling units for very low income households; 
  
  - c. Three incentives or concessions for projects that include at least 15 percent (15%) of the dwelling units for very low income households. 
  

• D. Other Concessions . The review authority shall grant other concessions for a Very Low Income Residential Project in accordance with Section 18.212.040 (Concessions and Incentives for Physical Development).

The granting of a density bonus, concession and/or incentive for a proposed Lower Income Residential Project shall comply with the following.

• A. Additional Eligibility . In addition to the requirements of Section 18.212.050.B.2, a Lower Income Residential Project shall comply with all of the following in order to be eligible for a density bonus, concessions and/or incentives:

  1. The applicant shall agree to the continued affordability of all lower income density bonus units for 55 years or a longer period of time if required by the construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy program.

  2. The units targeted for lower income households shall be affordable at a rent that does not exceed 30% of 60% of the area median income as calculated in accordance with Section 18.210.050.A (Affordable Rent) or shall be affordable at a sales price that does not exceed 30% of 70% of the area median income as calculated in accordance with Section 18.210.050.B (Affordable Sales Price).

  3. The applicant shall enter into and record an affordable housing agreement as set forth in Section 18.210.090 (Affordable Housing Agreement).

• B. Density Bonus . The review authority shall grant a density bonus for a Lower Income Residential Project in accordance with Section 18.212.020 (Density Bonus) and the following:

  1. The amount of the density increase shall be consistent with Table 7-2, unless the applicant requests a lesser density increase; and

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TABLE 7-2 DENSITY BONUS PERCENTAGE ALLOWANCE FOR LOWER INCOME RESIDENTIAL PROJECTS

2. An additional density bonus shall be granted for housing developments that provide additional rental or for-sale units for very low income households or moderate income households in compliance Section 18.212.170 (Additional Density Bonus).

3. If the applicant requests a density bonus for a Lower Income Residential Project in accordance with this section, the applicant shall not be eligible for a density bonus per Sections 18.212.060 (Bonus, Concessions and/or Incentives for Very Low Income Residential Project), 18.212.080 (Bonus, Concessions and/or Incentives for Moderate Income Residential Project), or 18.212.100 (Bonus, Concessions and/or Incentives for Senior Citizen Residential Project).

• C. Concession or Incentive . The review authority shall grant concessions and/or incentives for a Lower Income Residential Project in accordance with Section 18.212.030 (Concessions and Incentives) and the following:

  1. The applicant shall receive the following number of incentives or concessions:

• a. One incentive or concession for projects that include at least ten percent (10%) of the dwelling units for lower income households;

  - b. Two incentives or concessions for projects that include at least 17 percent (17%) of the dwelling units for lower income households; 
  
  - c. Three incentives or concessions for projects that include at least 24 percent (24%) of the dwelling units for lower income households. 
  

• D. Other Concessions . The review authority shall grant other concessions for a Lower Income Residential Project in accordance with Section 18.212.040 (Concessions and Incentives for Physical Development).

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The granting of a density bonus, concession and/or incentive for a proposed Moderate Income Residential Project shall comply with the following.

• A. Additional Eligibility . In addition to the requirements of Section 18.212.050.B.3, a Moderate Income Residential Project shall comply with all of the following in order to be eligible for a density bonus, concessions and/or incentives:

  1. The applicant shall agree to the following:

     • a. The initial occupant of the moderate income units are persons and families of moderate income as defined in Section 50093 of the Health and Safety Code.

     • b. Upon resale of the unit, the seller of the unit shall retain the value of any improvements, the downpayment, and the seller’s proportionate share of appreciation.

     • c. Upon resale of the unit, the Town shall recapture any initial subsidy and its proportionate share of appreciation. The initial subsidy shall be equal to the fair market value of the home at the time of initial sale minus the initial sale price plus the amount of any downpayment 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. The proportionate share of appreciation from the initial sale price shall be equal to the ratio of the Town’s initial subsidy to the fair market value of the home at the time of initial sale.

  2. The units targeted for moderate income households shall be affordable at a sales price that does not exceed 35% of 110% of the area median income as calculated in accordance with Section 18.210.050.B (Affordable Sales Price).

  3. The applicant shall enter into and record an affordable housing agreement as set forth in Section 18.210.090 (Affordable Housing Agreement).

• B. Density Bonus . The review authority shall grant a density bonus for a Moderate Income Residential Project in accordance with Section 18.212.020 (Density Bonus) and the following:

  1. The amount of the density increase shall be consistent with Table 7-3 below, unless the applicant requests a lesser density increase.

TABLE 7-3

DENSITY BONUS PERCENTAGE ALLOWANCE FOR MODERATE INCOME RESIDENTIAL PROJECTS

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2. An additional density bonus shall be granted for housing developments that provide additional rental or for-sale units for very low income households or moderate income households in compliance Section 18.212.170 (Additional Density Bonus).

   3. If the applicant requests a density bonus for a Moderate Income Residential project in accordance with this section, the applicant shall not be eligible for a density bonus per Sections 18.212.060 (Bonus, Concessions and/or Incentives for Very Low Income Residential Project), 18.212.070 (Bonus, Concessions and/or Incentives for Lower Income Residential Project), or 18.212.100 (Bonus, Concessions and/or Incentives for Senior Citizen Residential Project).

• C. Concession or Incentive . The review authority shall grant concessions and/or incentives for a Moderate Income Residential Project in accordance with Section 18.212.030 (Concessions and Incentives) and the following:

  1. The applicant shall receive the following number of incentives or concessions:

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• a. One incentive or concession for projects that include at least ten percent (10%) of the dwelling units for moderate income households;

• b. Two incentives or concessions for projects that include at least 20 percent (20%) of the dwelling units for moderate income households;

• c. Three incentives or concessions for projects that include at least 30 percent (30%) of the dwelling units for moderate income households.

• D. Other Concessions . The review authority shall grant other concessions for a Moderate Income Residential Project in accordance with Section 18.212.040 (Concessions and Incentives for Physical Development).

The granting of a density bonus, concession and/or incentive for a proposed Condominium Conversion Residential Project shall comply with the following.

• A. Additional Eligibility . In addition to the requirements of Section 18.212.050.B.4, a Condominium Conversion Residential Project shall comply with all of the following in order to be eligible for a density bonus, concessions and/or incentives:

  1. The applicant shall be ineligible for a density bonus or other incentives if the apartments proposed for conversion constituted a residential development for which a density bonus or other concessions or incentives were provided under this Chapter.

  2. The units targeted for moderate income or lower income households shall be affordable at a sales price calculated in accordance with Section 18.210.050.B (Affordable Sales Price) and shall continue to be affordable to subsequent purchasers who are persons and families of moderate or lower income households.

  3. The applicant shall agree to other reasonable conditions imposed by the review authority on the granting of the density bonus or other incentives.

  4. The applicant shall enter into and record an affordable housing agreement as set forth in Section 18.210.090 (Affordable Housing Agreement).

• B. Preliminary Proposal . Prior to the submittal of any formal requests for subdivision map approvals, an applicant may submit to the Town a preliminary proposal requesting a response from the Town on how the Town will comply with the provisions of this section. The Town Council shall approve a written response on the means of compliance with this section and notify the applicant within 90 days of receipt of the preliminary proposal.

• C. Density Bonus or other Incentives . The review authority shall grant a density bonus or equivalent incentives for a Condominium Conversion Residential Project in accordance with Section 18.212.020 (Density Bonus) and the following:

  1. The amount of the density increase shall be 25% over the number of units to be converted, up to a maximum of 35% unless the applicant requests a lesser density increase. The

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increase in units shall be provided within the existing structure or structures proposed for conversion; or

2. In lieu of granting a density increase, the review authority shall grant the applicant other incentives, such as reduction or waiver of development standards, of equivalent financial value to a density increase.

The granting of a density bonus, concession and/or incentive for a proposed Senior Citizen Residential Project shall comply with the following.

• A. Additional Eligibility . In addition to the requirements of Section 18.212.050.B.5, a Senior Citizen Residential Project shall comply with all of the following in order to be eligible for a density bonus, concessions and/or incentives:

  1. The applicant shall agree to the continued operation of the proposed residential project as a senior citizen housing development as defined in Section 51.3 of the Civil Code or mobile home park for housing for older persons pursuant to Section 798.76 or 799.5 of the Civil Code.

  2. The applicant shall enter into and record an affordable housing agreement as set forth in Section 18.210.090 (Affordable Housing Agreement).

• B. Density Bonus . The review authority shall grant a density bonus for a Senior Citizen Residential Project in accordance with Section 18.212.020 (Density Bonus) and the following:

  1. The amount of the density increase shall be 20% of the number of senior housing units, unless the applicant requests a lesser density increase.

  2. If the applicant requests a density bonus for a Senior Citizen Residential Project in accordance with this section, the applicant shall not be eligible for a density bonus per Sections 18.212.060 (Bonus, Concessions and/or Incentives for Very Low Income Residential Project), 18.212.070 (Bonus, Concessions and/or Incentives for Lower Income Residential Project), or 18.212.080 (Bonus, Concessions and/or Incentives for Moderate Income Residential Project).

• C. Concession or Incentive . A Senior Citizen Residential Project is not eligible for a concession or incentive as set forth in Section 18.212.030 (Concessions and Incentives).

• D. Other Concessions . The review authority shall grant other concessions for a Senior Citizen Residential Project in accordance with Section 18.212.040 (Concessions and Incentives for Physical Development).

The granting of a density bonus, concession and/or incentive for a proposed Land Donation Residential Project shall comply with the following.

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18.212

Density Bonuses, Concessions and Incentives

• A. Additional Eligibility . In addition to the requirements of Section 18.212.050.B.6, a Land Donation Residential Project shall comply with all of the following in order to be eligible for a density bonus:

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

  2. The land being donated and transferred shall comply with all of the following:

     • a. The developable acreage and zoning classification of the land are sufficient to permit construction of units affordable to very low income households in an amount not less than 10% of the number of residential units of the proposed residential development;

     • b. The land is at least one acre in size or of sufficient size to permit development of at least 40 units, has the appropriate general plan designation, is appropriately zoned with appropriate development standards for development at the density described in Section 65583.2.c.3 of the Government Code, and is or will be served by adequate public facilities and infrastructure;

     • c. No later than the date of approval of the final subdivision map, parcel map, or the residential development application, the land shall have all of the permits and approvals, other than building permits, necessary for the development of the very low income housing units on the land, except that the Town may subject the proposed development to subsequent design review to the extent authorized by Section 65583.2(i) of the Government Code if the design is not reviewed by the Town prior to the time of transfer;

     • d. The land is transferred to the Town or to a housing developer approved by the Town. The Town may require the applicant to identify and transfer the land to the housing developer;

     • e. The land shall be within the boundary of the proposed residential development, or if approved by the Town, within one-quarter mile of the boundary of the proposed residential development; and

     • f. A proposed source of funding for the very low income units shall be identified not later than the date of approval of the final subdivision map, parcel map, or residential development application.

  3. The land and affordable units shall be subject to a deed restriction which shall be recorded on the property at the time of dedication. The deed restriction shall ensure the continued affordability of the units as follows:

     • a. The deed restriction shall be for a period of 55 years or a longer period of time if required by the construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy program; and

• b. The units shall be affordable for very low income households at a rent calculated in accordance with Section 18.210.050.A (Affordable Rent) or at a sales price calculated in accordance with Section 18.210.050.B (Affordable Sales Price) and.

  4. The applicant shall enter into and record an affordable housing agreement as set forth in Section 18.210.090 (Affordable Housing Agreement).

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VII-22

TRUCKEE MUNICIPAL CODE - TITLE 18, DEVELOPMENT CODE

18.212

Density Bonuses, Concessions and Incentives

• B. Density Bonus . The review authority shall grant a density bonus for a Land Donation Residential Project in accordance with Section 18.212.020 (Density Bonus) and the following:

  1. The amount of the density bonus shall be 15% plus an increase of 1% for each 1% increase above 10% in the land donation described in Subsection A.2.a, up to a maximum of 35%, unless the applicant requests a lesser density increase, see Table 7-4.

TABLE 7-4

DENSITY BONUS PERCENTAGE ALLOWANCE FOR LAND DONATION RESIDENTIAL PROJECTS

• C. Concession or Incentive and Other Concessions . A Land Donation Residential Project is not eligible for a concession or incentive as set forth in Section 18.212.030 (Concessions and Incentives) and is not eligible for other concessions as set forth in Section 18.212.040 (Concessions and Incentives for Physical Development).

The granting of a density bonus, concession and/or incentive for a proposed Child Care Residential Project shall comply with the following.

• A. Additional Eligibility . In addition to the requirements of Section 18.212.050.B.7, a Child Care Residential Project shall comply with all of the following in order to be eligible for a density bonus, concessions and/or incentives:

  1. The child care facility shall comply with all of the following:

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18.212

Density Bonuses, Concessions and Incentives

  - a. The child care facility shall not be a family day care home, but may include, but not be  limited to, an infant center, preschool, extended day care facility, and schoolage child care center; 

  - b. The child care facility shall be located on the premises of, as part of, or adjacent to, the residential project; 

  - c. The child care facility shall remain in operation for a period of time that is as long as or longer than the period of time during which the density bonus units are required to remain affordable pursuant to Section 65915(c) of the Government Code; and 

  - d. Of the children who attend the child care 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 pursuant to Section 65915(b) of the Government Code; 

3. The land and affordable units shall be subject to a deed restriction which shall be recorded on the property at the time of dedication. The deed restriction shall ensure the continued affordability of the units as follows:

   • a. The deed restriction shall be for a period of 55 years or a longer period of time if required by the construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy program; and

   • b. The units shall be affordable for very low income households at a rent calculated in accordance with Section 18.210.050.A (Affordable Rent) and or at a sales price calculated in accordance with Section 18.210.050.B (Affordable Sales Price) and.

4. The applicant shall enter into and record an affordable housing agreement as set forth in Section 18.210.090 (Affordable Housing Agreement) which includes the above requirements.

• B. Density Bonus, Concession or Incentive . Unless the Town Council finds, based upon substantial evidence that the community has adequate child care facilities, the review authority shall grant a density bonus or concession or incentive for a Child Care Residential Project in accordance with Section 18.212.020 (Density Bonus) and the following:

1. The amount of the density increase shall be an amount of square feet of residential floor space that is equal to or greater than the amount of square feet of floor space in the child care facility, up to a maximum of 35% inclusive of all density bonuses provided under this Chapter; or

   2. In lieu of granting a density increase, the review authority shall grant a concession or incentive, in addition to any other concession and/or incentive allowable under this Chapter that contributes significantly to the economic feasibility of the construction of the child care facility.

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VII-24

TRUCKEE MUNICIPAL CODE - TITLE 18, DEVELOPMENT CODE

18.212

Density Bonuses, Concessions and Incentives

The granting of a density bonus, concession and/or incentive for a proposed Transitional Residential Project shall comply with the following.

• A. Additional Eligibility . In addition to the requirements of Section 18.212.050.B.8, a Transitional Residential Project shall comply with all of the following in order to be eligible for a density bonus, concessions and/or incentives:

  1. The land and affordable units shall be subject to a deed restriction which shall be recorded on the property at the time of dedication. The deed restriction shall ensure the continued affordability of the units as follows:

     • a. The deed restriction shall be for a period of 55 years or a longer period of time if required by the construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy program; and

     • b. The units shall be affordable for very low income households at a rent calculated in accordance with Section 18.210.050.A (Affordable Rent) and the or at a sales price calculated in accordance with Section 18.210.050.B (Affordable Sales Price) and.

  2. The applicant shall enter into and record an affordable housing agreement as set forth in Section 18.210.090 (Affordable Housing Agreement) which includes the above requirements.

• B. Density Bonus, Concession or Incentive . The review authority shall grant a density bonus or concession or incentive for a Transitional Residential Project in accordance with Section 18.212.020 (Density Bonus) and the following:

  1. The amount of the density bonus shall be 20% of the number of the units designated for the transitional foster youths, disabled veterans, and/or homeless persons as defined in Section 18.212.050.B.8.

  2. If the applicant requests a density bonus for a Transitional Residential Project in accordance with this section, the applicant shall not be eligible for a density bonus per Sections 18.212.060 (Bonus, Concessions and/or Incentives for Very Low Income Residential Project), 18.212.070 (Bonus, Concessions and/or Incentives for Lower Income Residential Project), or 18.212.080 (Bonus, Concessions and/or Incentives for Moderate Income Residential Project).

• C. Concession or Incentive . A Transitional Residential Project is not eligible for a concession or incentive as set forth in Section 18.212.030 (Concessions and Incentives).

• D. Other Concessions . The review authority shall grant other concessions for a Transitional Residential Project in accordance with Section 18.212.040 (Concessions and Incentives for Physical Development).

May 28, 2026

VII-25

TRUCKEE MUNICIPAL CODE - TITLE 18, DEVELOPMENT CODE

18.212

Density Bonuses, Concessions and Incentives

The granting of a density bonus, concession and/or incentive for a proposed 100 Percent Affordable Income Residential Project shall comply with the following.

• A. Additional Eligibility. In addition to the requirements of Section 18.212.050.B.9, a 100 Percent Affordable Residential Project shall comply with the following in order to be eligible for a density bonus, concessions and/or incentives:

  1. Rents for all units in the development, including both base density and density bonus units, shall be as follows:

     • a. The rent for at least 20 percent of the units in the development shall be set at an affordable rent, as defined in Section 50053 of the Health and Safety Code.

     • b. The rent for the remaining units in the development shall be set at an amount consistent with the maximum rent levels for a housing development that receives an allocation of state of federal low-income housing tax credits from the California Tax Credit Allocation Committee.

• B. Density Bonus . The review authority shall grant a density bonus for a 100 Percent Affordable Residential Project in accordance with Section 18.212.020 (Density Bonus) and the following:

  1. The amount of the density increase 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, as defined in subdivision (b) of Section 21155 of the Public Resources Code, no maximum controls on density may be imposed.

• C. C. Concession or Incentive . The review authority shall grant concessions and/or incentives for a 100 Percent Affordable Residential Project in accordance with Section 18.212.030 (Concessions and Incentives) and the following:

  1. The applicant shall receive the following number of incentives or concessions:

     • a. Four incentives or concessions; and

     • b. If the project is located within a half-mile of a major transit stop, as defined in subdivision (b) of Section 21155 of the Public Resources Code, the applicant shall also receive a height increase of up to three additional stories, of 33 feet.

• D. Other Concessions. A housing development that receives a waiver from any maximum controls on density shall not be eligible for, and shall not receive, a waiver or reduction of development standards, other than as expressly provided in this subsection.

May 28, 2026

VII-26

TRUCKEE MUNICIPAL CODE - TITLE 18, DEVELOPMENT CODE

18.212

Density Bonuses, Concessions and Incentives

The granting of a density bonus, concession and/or incentive for a proposed Student Housing Project shall comply with the following.

• A. Additional Eligibility. In addition to the requirements of Section 18.212.050.B.10, a Student Housing Project shall comply with the following in order to be eligible for a density bonus, concessions and/or incentives:

  1. The developer shall, as a condition of receiving certificate of occupancy, provide evidence to the Town that the developer has entered into an operating agreement or master lease with one or more institutions of higher education for the institution or institutions to occupy all units of the student housing development with students from that institution or institutions. An operating agreement or master lease entered into pursuant to this requirement is not violated or breached if, in any subsequent year, there are not sufficient students enrolled in the institution of higher education to fill all units in the student housing development.

  2. The applicable 20 percent units will be used for lower income students. “Lower income students” mean 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 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.

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

  4. 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.

• B. Density Bonus . The review authority shall grant a density bonus for a Student Housing Project in accordance with Section 18.212.020 (Density Bonus).

• C. Concession or Incentive . The review authority shall grant concessions and/or incentives for a Student Housing Project in accordance with Section 18.212.030 (Concessions and Incentives).

The granting of a development bonus for a proposed Partnered Commercial Project shall comply with the following.

May 28, 2026

VII-27

TRUCKEE MUNICIPAL CODE - TITLE 18, DEVELOPMENT CODE

18.212

Density Bonuses, Concessions and Incentives

• A. Additional Eligibility . In addition to the requirements of Section 18.212.050.B.11, a Partnered Commercial Project shall comply with all of the following in order to be eligible for a development bonus:

  1. “Partner” shall mean formation of a partnership, limited liability company, corporation, or other entity recognized by the state in which the commercial development applicant and the affordable housing developer are each partners, members, shareholders or other participants, or a contract or agreement between a commercial development applicant and affordable housing developer for the development of both the commercial and the affordable housing properties.

  2. Housing shall be constructed on the site of the commercial development or on a site that is all of the following:

  - a. Within the boundaries of the Town of Truckee. 
  
  - b. In close proximity to public amenities including schools and employment centers. 
  
  - c. Located within one-half mile of a major transit stop, as defined in subdivision (b) of3Section 21155 of the Public Resources Code; 
  

  2. The commercial developer shall contribute affordable housing in one of the following manners:

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

     • b. 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; or

     • 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.

  3. If the developer of the affordable units does not commence with construction of those housing units in accordance with the timelines in the agreement for partnered housing, the Town of Truckee may withhold certificates of occupancy for the commercial development under construction until the developer has completed construction off the affordable units.

• B. Development Bonus . The review authority shall grant a development bonus for a Partnered Commercial Project in accordance with and the following:

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

  - 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;
  

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VII-28

TRUCKEE MUNICIPAL CODE - TITLE 18, DEVELOPMENT CODE

Density Bonuses, Concessions and Incentives

18.212

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

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

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

  • c. An exception to a standard within this Development Code.

• C. Concession or Incentive . The affordable housing project associated with the Partnered Commercial Project may seek the density bonuses. concession, and incentives as set forth within this Chapter.

The granting of an additional density bonus shall comply with the following.

• A. An additional density bonus shall be granted when an applicant proposes to construct a housing development that conforms to the requirements of Section 18.212.050 (Eligibility for Bonus, Concessions and/or Incentives), agrees to include additional rental or for-sale units affordable to very low income households or moderate income households, and meets any of the following criteria:

  1. The housing development conforms to the requirements for a Very Low Income Residential Project (Section 18.212.050.B.1) and provides 15 percent of the total units to very low income households. 
  
  2. The housing development conforms to the requirements for a Lower Income Residential Project (Section 18.212.050.B.2) and provides 24 percent of the total units to lower income households. 
  
  3. The housing development conforms to the requirements for a Moderate Income Residential Project (Section 18.212.050.B.3) and provides 44 percent of the total units to moderate-income units. 
  

  • B. The additional density bonus for a housing development that meets the requirements of Subsection A above shall be calculated as follows:

TABLE 7-5

ADDITIONAL DENSITY BONUS PERCENTAGE ALLOWANCE

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Density Bonuses, Concessions and Incentives

• C. The additional very low income or moderate income units may be offered as for-sale or rental units. The units shall be affordable at a rent calculated in accordance with Section 18.210.050.A (Affordable Rent) or at a sales price calculated in accordance with Section 18.210.050.B (Affordable Sales Price).

• D. The additional density bonus shall be in addition to any increase in density granted by Section 18.212.060 (Bonus, Concessions and/or Incentives for Very Low Income Residential Project), Section 18.212.070 (Bonus, Concessions and/or Incentives for Lower Income Residential Project) and Section 18.212.080 (Bonus, Concessions and/or Incentives for Moderate Income Residential Project).

May 28, 2026

VII-30

TRUCKEE MUNICIPAL CODE - TITLE 18, DEVELOPMENT CODE

18.213

Deed-Restricted Housing Incentives

– CHAPTER 18.213 DEED-RESTRICTED HOUSING INCENTIVES

Sections:

18.213.010 - Purpose of Chapter 18.213.020 - Applicability 18.213.030 - Review Process 18.213.040 - Deed-Restricted Housing Incentives Eligibility Requirements 18.213.050 - Deed-Restricted Housing Project Incentives