Chapter 10.82 — DENSITY BONUS

As required by Cal. Gov't Code § 65915, this chapter offers density bonuses and incentives or concessions for the development of housing that is affordable to the types of households and qualifying residents identified in § 10.82.020 Eligibility for bonus, incentives, or concessions below. This chapter is intended to implement the requirements of Cal. Gov't Code §§ 65915 et seq. and the Housing Element of the General Plan.

(Ord. 2025-01, passed 1-7-2025)

In order to be eligible for a density bonus and other incentives or concessions as provided by this chapter, a proposed housing development shall comply with the following requirements and shall satisfy all other applicable provisions of this title, except as provided by § 10.82.040 Allowed incentives or concessions.

(A) Resident requirements. A housing development proposed to qualify for a density bonus shall be designed and constructed so that it includes at least any one of the following:

(1) Ten percent of the total number of proposed units are for lower-income households, as defined in Cal. Health and Safety Code § 50079.5.

(2) Five percent of the total number of proposed units are for very low-income households, as defined in Cal. Health and Safety Code § 50105.

(3) The project is a senior citizen housing development as defined in Cal. Civil Code §§ 51.3 and 51.12, or is a mobile home park that limits residency based on age requirements for housing older persons in compliance with Cal. Civil Code §§ 798.76 or 799.5.

(4) Ten percent of the total dwelling units in a common interest development as defined in Cal. Civil Code § 4100 is for persons and families of moderate income, as defined in Cal. Health and Safety Code § 50093, provided that all units in the development are offered to the public for purchase.

(B) Applicant selection of basis for bonus. For purposes of calculating the amount of the density bonus in compliance with § 10.82.030 Allowed density bonuses below, the applicant who requests a density bonus shall elect whether the bonus shall be awarded on the basis of divisions (A)(1), (2), (3), or (4) above.

(C) Bonus units shall not qualify a project. A density bonus granted in compliance with § 10.82.030 Allowed density bonuses, below, shall not be included when determining the number of housing units that is equal to the percentages required by division (A) above.

(D) Minimum project size to qualify for density bonus. The density bonus provided by this chapter shall be available only to a housing development of five or more dwelling units.

(E) Condominium conversion projects. A condominium conversion project for which a density bonus is requested shall comply with the eligibility and other requirements specified in Cal. Gov't Code § 65915.5. (Ord. 2025-01, passed 1-7-2025)

The review authority shall determine the amount of a density bonus allowed in a housing development in compliance with this section. For the purposes of this chapter, "density bonus" means a density increase over the otherwise maximum allowable residential density under the applicable General Plan Land Use designation and zone as of the date of application by the applicant to the city.

(A) Density bonus. A housing development that complies with the eligibility requirements specified in §§ 10.82.020(A)(1), (A)(2), (A)(3), or (A)(4) above, shall be entitled to density bonuses as follows unless a lesser percentage is proposed by the applicant.

(1) Bonus for units for lower-income households. A housing development that is eligible for a bonus in compliance with the criteria specified in § 10.82.020(A)(1), (10% of units for lower-income households) shall be entitled to a density bonus calculated as follows:

(2) Bonus for units for very low-income households. A housing development that is eligible for a bonus in compliance with the criteria specified in § 10.82.020(A)(2), (5% of units for very low-income households) shall be entitled to a density bonus calculated as follows:

(3) Bonus for senior citizen development. A housing development that is eligible for a bonus in compliance with the criteria in § 10.82.020(A)(3), (senior citizen development or mobile home park) shall be entitled to a density bonus of 20%.

(4) Bonus for moderate-income units in common interest development. A housing development that is eligible for a bonus in compliance with the criteria specified in § 10.82.02(A)(4), (10% of units in a common interest development for persons and families of moderate income) shall be entitled to a density bonus calculated as follows:

(5) Density bonus for land donation. When an applicant for a tentative map, parcel map, or other residential development approval donates land to the city in compliance with this division, the applicant shall be entitled to a density bonus for the entire development, as follows; provided, that nothing in this division shall be construed to affect the authority of the city to require a developer to donate land as a condition of development.

(a) Basic bonus. The applicant shall be entitled to a 15% increase above the otherwise maximum allowable residential density under the applicable Land Use Plan designation and zone for the entire development, and an additional increase as follows:

(b) Increased bonus. The increase identified in Table 10.82.030-4 above shall be in addition to any increase in density required by divisions (A)(1) through (A)(4), up to a maximum combined mandated density increase of 35% if an applicant seeks both the increase required in compliance with this division (A)(5), as well as the bonuses provided by divisions (A)(1) through (A)(4).

(c) Eligibility for increased bonus. An applicant shall be eligible for the increased density bonus provided by this division if all of the following conditions are met:

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

2. The developable acreage and zoning classification of the land being transferred is sufficient to allow 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 development.

3. The transferred land is at least one acre in size, or of sufficient size to allow the development of at least 40 units; has the appropriate Land Use Plan designation; is appropriately zoned for development as affordable housing; and is or will be served by adequate public facilities and infrastructure. The land shall have appropriate zoning and development standards to make the development of affordable units feasible.

4. No later than the date of approval of the final map, parcel map, or of the residential development, the transferred land shall have all of the permits and approvals, other than building permits, necessary for the development of the very low-income housing units on the transferred land, except that the city may subject the proposed development to subsequent site plan review to the extent authorized by Cal. Gov't Code § 65583.2(i) if the site plan and associated details have not been reviewed by the city before the time of transfer.

5. The transferred land and the affordable units shall be subject to a deed restriction ensuring continued affordability of the units consistent with § 10.82.070 Continued availability, which shall be recorded on the property at the time of dedication.

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

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

(B) Greater or lesser bonuses. The city may choose to grant a density bonus greater than provided by this section for a development that meets the requirements of this section or grants a proportionately lower density bonus than required by this section for a development that does not fully comply with the requirements of this section.

(C) Density bonus calculations. The calculation of a density bonus in compliance with this section that results in fractional units shall be rounded up to the next whole number, as required by state law. For the purpose of calculating a density bonus, the residential units do not have to be based on individual subdivision maps or parcels.

(D) Requirements for amendments or discretionary approval. The granting of a density bonus shall not be interpreted, in and of itself, to require a General Plan amendment, Zoning Map amendment, or other discretionary approval.

(E) Location of bonus units. The developer may locate density bonus units in the housing project in areas other than where the units for lower-income households are located.

(Ord. 2025-01, passed 1-7-2025)

(A) Applicant request and city approval.

(1) An applicant for a density bonus in compliance with this chapter may submit to the city a proposal for the specific incentives or concessions listed in division (C) Type of incentives, below, that the applicant requests in

compliance with this section, and may request a meeting with the Director. The applicant may file a request either before filing an application for city approval of a proposed project or concurrently with an application for project approval. The review authority shall grant an incentive or concession request that complies with this section unless the review authority makes either of the following findings in writing, based on substantial evidence:

(a) The incentive or concession is not required to provide for affordable housing costs, or for rents for the targeted units to be set as specified in Cal. Health and Safety Code § 50052.5.

(b) The incentive or concession would have a specific adverse impact, as defined in Cal. Gov't Code § 65589.5(d)(2), upon public health and safety or the physical environment, or on any real property listed in the California Register of Historical Resources and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact without rendering the development unaffordable to low- and moderate-income households.

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

(B) Number of incentives. The applicant shall receive the following number of incentives or concessions.

(1) One incentive or concession. One incentive or concession for a project that includes at least 10% of the total units for lower-income households, at least 5% for very low-income households, or at least 10% for persons and families of moderate income in a common interest development.

(2) Two incentives or concessions. Two incentives or concessions for a project that includes at least 20% of the total units for lower-income households, at least 10% for very low-income households, or at least 20% for persons and families of moderate income in a common interest development.

(3) Three incentives or concessions. Three incentives or concessions for a project that includes at least 30% of the total units for lower-income households, at least 15% for very low-income households, or at least 30% for persons and families of moderate income in a common interest development.

(C) Type of incentives. For the purposes of this chapter, concession or incentive means any of the following:

(1) A reduction in the site development standards of this title (e.g., site coverage limitations, setbacks, reduced parcel sizes, and/or parking requirements) (see also § 10.82.050 Parking requirements in density bonus projects), or a modification of architectural design requirements that exceed the minimum building standards approved by the California Building Standards Commission in compliance with Cal. Health and Safety Code §§ 18901 et seq. , that would otherwise be required, that results in identifiable, financially sufficient, and actual cost reductions.

(2) Approval of mixed-use land uses not otherwise allowed by this title in conjunction with the housing development if non-residential land uses will reduce the cost of the housing development, and the non-residential land uses are compatible with the housing project and the existing or planned development in the area where the project will be located.

(3) Other regulatory incentives proposed by the applicant or the city that will result in identifiable, financially sufficient, and actual cost reductions.

(D) Effect of incentive or concession. The granting of a concession or incentive shall not be interpreted, in and of itself, to require a General Plan amendment, Zoning Map amendment, or other discretionary approval. (Ord. 2025-01, passed 1-7-2025)

(A) Applicability. This section applies to a development that meets the requirements of § 10.82.020 Eligibility for density bonus, incentives, and concessions, above, but only at the request of the applicant. An applicant may request additional parking incentives or concessions beyond those provided in this section in compliance with § 10.82.040 Allowed incentives or concessions, above.

• (B) Number of parking spaces required.

(1) At the request of the applicant, the city shall require the following vehicular parking ratios for a project that complies with the requirements of § 10.82.020 Eligibility for density bonus, incentives, and concessions, above, inclusive of handicapped and guest parking.

• (a) Zero to one bedroom: One on-site parking space.

• (b) Two to three bedrooms: Two on-site parking spaces.

• (c) Four and more bedrooms: Two and one half on-site parking spaces.

• (2) If the total number of parking spaces required for a development is other than a whole number, the number shall be rounded up to the next whole number.

• (C) Location of parking. For purposes of this section, a development may provide on-site parking through uncovered parking, but not through on-street parking.

• (Ord. 2025-01, passed 1-7-2025)

Housing developments. A housing development that complies with the resident and project size requirements of § 10.82.020(A) and (B) above, and also includes as part of that development a childcare facility other than a large or small family day care home, that will be located on the site of, as part of, or adjacent to the development, shall be subject to the following additional bonus, incentives, and requirements.

(A) Additional bonuses and incentives. The city shall grant a housing development that includes a childcare facility in compliance with this section either of the following:

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

(2) An additional incentive that contributes significantly to the economic feasibility of the construction of the childcare facility.

• (B) Requirements to qualify for additional bonuses and incentives.

• (1) The city shall require, as a condition of approving the housing development, that:

(a) The childcare 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 in compliance with Cal. Gov't Code § 65915 as amended.

(b) Of the children who attend the childcare facility, the children of very low-income households, lower-income households, or families of moderate income shall equal a percentage that is equal to or greater than the percentage of dwelling units that are required for very low-income households, lower-income households, or families of moderate income in compliance with § 10.82.020(A) Resident requirements, above.

(2) The city shall not be required to provide a density bonus for a childcare facility in compliance with this section if it finds, based on substantial evidence, that the community has adequate childcare facilities. (Ord. 2025-01, passed 1-7-2025)

The units that qualified the housing development for a density bonus and other incentives and concessions shall continue to be available as affordable units in accordance with the requirements, of Cal. Gov't Code § 65915 as amended.

(Ord. 2025-01, passed 1-7-2025)

(A) Location/dispersal of units. Designated units shall be reasonably dispersed throughout the project where feasible, shall contain on average the same number of bedrooms as the non-designated units in the project, and shall be compatible with the design or use of remaining units in terms of appearance, materials, and finish quality.

(B) Phasing. If a project is to be phased, the density bonus units shall be phased in the same proportion as the nondensity bonus units, or phased in another sequence acceptable to the city.

(Ord. 2025-01, passed 1-7-2025)

(A) Agreement required. An applicant requesting a density bonus shall agree to enter into a density bonus agreement (referred to as the "agreement") with the city in the city's standard form of agreement. The applicant shall prepare the draft agreement for submission to the city for review.

• (B) Agreement provisions.

• (1) Project information. The agreement shall include at least the following information about the project:

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

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

• (c) The marketing plan for the affordable units.

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

• (e) Tenure of the use restrictions for designated dwelling units of the time periods required by § 10.82.070 Continued availability.

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

• (g) A description of the additional incentives and concessions being provided by the city.

• (h) A description of the remedies for breach of the agreement by the owners, developers, and/or successors-ininterest of the project.

• (i) Other provisions to ensure successful implementation and compliance with this chapter.

• (2) Minimum requirements. The agreement shall provide, at minimum, that:

• (a) The developer shall give the city the continuing right of first refusal to lease or purchase any or all 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 successorsin-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 low and very low-income households, as published by HUD.

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

(e) Applicable deed restrictions, in a form satisfactory to the City Council, shall contain provisions for the enforcement of owner or developer compliance. Any default or failure to comply may result in foreclosure, specific performance, or withdrawal of the certificate of occupancy.

(f) In any action taken to enforce compliance with the deed restrictions, the City Attorney 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) Compliance with the agreement will be monitored and enforced in compliance with the measures included in the agreement.

(3) For-sale housing conditions. In the case of a for-sale housing development, the agreement shall provide for the following conditions governing the initial sale and use of designated dwelling units during the applicable restriction period:

• (a) Designated dwelling units shall be owner-occupied by eligible households, or by qualified residents in the case of senior housing.

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

1. Restricts the sale of the unit in compliance with this chapter, or other applicable city policy or ordinance, during the applicable use restriction period.

2. Contains provisions that the city may require to ensure continued compliance with this chapter and state law.

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

• (4) Rental housing conditions. In the case of a rental housing development, the agreement shall provide for the following conditions governing the use of designated dwelling units during the applicable restriction period:

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

(b) Provisions requiring owners to annually verify tenant incomes and maintain books and records to demonstrate compliance with this chapter.

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

(d) The applicable use restriction period shall comply with the time limits for continued availability in § 10.82.070 Continued availability, above.

(C) Execution of agreement.

(1) Following approval of the agreement, and execution of the agreement by all parties, the city shall record the completed agreement on the parcels designated for the construction of designated dwelling units, at the County Recorder's Office.

(2) The approval and recordation shall take place at the same time as the final map or, where a map is not being processed, before issuance of building permits for the designated dwelling units.

(3) The agreement shall be binding on all future owners, developers, and/or successors-in- interest. (Ord. 2025-01, passed 1-7-2025)

In order to maintain the availability of for-sale affordable housing units constructed in compliance with this chapter, the following resale conditions shall apply.

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

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

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

(Ord. 2025-01, passed 1-7-2025)

(A) Judicial relief. As provided by Cal. Gov't Code § 65915(d)(3), the applicant may initiate judicial proceedings if the city refuses to grant a requested density bonus, incentive, or concession.

(B) Waiver of standards preventing the use of bonuses, incentives, or concessions.

(1) As required by Cal. Gov't Code § 65915(e), the city shall not apply a development standard that will have the effect of precluding the

construction of a development meeting the criteria of § 10.82.020(A) Resident requirements, above, at the densities or with the concessions or incentives allowed by this chapter.

(2) An applicant may submit to the city a proposal for the waiver or reduction of development and zoning standards that would otherwise inhibit the utilization of a density bonus on a specific site, including minimum parcel size, side setbacks, and placement of public works improvements.

(3) The applicant shall show that the waiver or modification is necessary to make the housing units economically feasible.

(C) City exemption. Notwithstanding the provisions of divisions (A) and (B), above, nothing in this section shall be interpreted to require the city to:

(1) Grant a density bonus, incentive, or concession, or waive or reduce development standards, if the bonus, incentive, concession, waiver, or reduction would have a specific, adverse impact, as defined in Cal. Gov't Code § 65589.5(d)(2), upon health, safety, or the physical environment, and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact.

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

(Ord. 2025-01, passed 1-7-2025)