Part 2 — IMPLEMENTATION AND INCENTIVES

A housing development meeting the requirements of this section is eligible for a density bonus. 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.

(a)

The City shall grant one (1) density bonus, the amount of which shall be as specified in Section 9122, concession(s) or incentive(s), as described in Section 9123, waivers or reductions of development standards, as described in Section 9124, and parking ratios, as described in Section 9132 when an applicant seeks and agrees to construct a housing development, excluding any units permitted by the density bonus awarded pursuant to this Chapter, that will contain at least any one (1) of the following:

(1)

Housing for Lower Income Households. Ten (10) percent of the total units of the housing development, including a shared housing building development, as targeted units affordable to lower-income households; or

(2)

Housing for Very Low-Income Households. Five (5) percent of the total units of the housing development, including a shared housing building development, as targeted units affordable to very low-income households; or

(3)

Senior Citizen Housing Development or Mobile Home Park. Senior citizen housing development or mobile home park that limits residency based on age requirements for housing for older persons pursuant to Section 798.76 or 799.5 of the Civil Code. For purposes of this subsection, "development" includes a shared housing building development; or

(4)

Housing for Moderate-Income Households. Ten (10) percent of the total units of a housing development are sold to persons and families of moderate income, provided that all units in the development are offered to the public for purchase; or

(5)

Housing for Transitional Foster Youth, Disabled Veterans, Homeless Persons. Ten (10) percent of the total units of a housing development for transitional foster youth as defined in Section 66025.9 of the Education Code, disabled veterans, as defined in Section 18541 of the Government Code, or homeless persons, as defined in the federal McKinney-Vento Homeless Assistance Act (42 U.S.C. Sec. 11301 et seq.). The units described in this subparagraph shall be subject to a recorded affordability restriction of fifty-five (55) years and shall be provided at the same affordability level as very low-income units; or

(6)

Student Housing. Twenty (20) percent of the total units of the housing development for lower income students in a student housing development that meets the following requirements:

(i)

All units in the student housing development will be used exclusively for undergraduate, graduate, or professional students enrolled full-time at an institution of higher education accredited by the Western Association of Schools and Colleges or the Accrediting Commission for Community and Junior Colleges. In order to be eligible under this subclause, the developer shall, as a condition of receiving a certificate of occupancy, provide evidence to the City that the developer has entered into an operating agreement or master lease with one (1) 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 subclause is not violated or breached if, in any subsequent year, there are not sufficient students enrolled in an institution of higher education to fill all units in the student housing development.

(ii)

The applicable twenty (20) percent units will be used for lower-income students.

(iii)

The rent provided in the applicable units of the development for lower income students shall be calculated at thirty (30) percent of sixty-five (65) percent of the area median income for a single-room occupancy unit type.

(iv)

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 (e) of Section 103577 of the Health and Safety Code, or institution of higher education that has knowledge of a person's homeless status may verify a person's status as homeless for purposes of this subparagraph.

For purposes of calculating a density bonus granted pursuant to this Subsection 6, the term "unit" means one (1) rental bed and its pro rata share of associated common area facilities. The units described in this subsection shall be subject to a recorded affordability restriction of fifty-five (55) years.

(7)

One hundred (100) percent of all units in the development, including total units and density bonus units, but exclusive of a manager's unit or units, are for lower-income households, as defined by Section 50079.5 of the Health and Safety Code, except that up to twenty (20) percent of the units in the development, including total units and density bonus units, may be for moderate-income households. For purposes of this subsection, "development" includes a shared housing building development.

(8)

For purposes of calculating the amount of the density bonus pursuant to Section 9121, the applicant who requests the density bonus pursuant to this subsection shall elect whether the bonus shall be awarded on the basis of subparagraph (1), (2), (3), (4), (5), (6) or (7) of this subsection.

(9)

For the purposes of this section, "total units" or "total dwelling units" excludes units added by a density bonus awarded pursuant to this section or any local law granting a greater density bonus but includes Voluntary Workforce Housing Incentive Program units pursuant to Chapter 9B.

(10)

For purposes of calculating a density bonus granted pursuant to this Section 9121 for a shared housing building, "unit" means one (1) shared housing unit and its pro rata share of associated common area facilities.

(b)

Land Donation. When an applicant for a tentative subdivision map, parcel map, or other residential development approval donates land to the City as provided for in this subsection, the City shall grant a density bonus, the amount of which shall be as specified in Section 9122(h). This increase shall be in addition to any increase in density mandated by Section 9121(a), up to a maximum combined mandated density increase of thirty-five (35) percent if an applicant seeks both the increase required pursuant to this subsection and Section 9121(a). All density calculations resulting in fractional units shall be rounded up to the next whole number. Nothing in this subsection shall be construed to enlarge or diminish the authority of the City to require a developer to donate land as a condition of development. An applicant shall be eligible for the increased density bonus described in this subsection 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 subdivision map, parcel map, or residential development application.

(2)

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

(3)

The transferred land is at least one (1) acre in size or of sufficient size to permit development of at least forty (40) units, has the appropriate general plan designation, is appropriately zoned with appropriate development standards for development at the density described in paragraph (3) of subdivision (c) of Government Code section 65583.2 for development of affordable housing on land suitable for residential development, and is or will be served by adequate public facilities and infrastructure.

(4)

No later than the date of approval of the final subdivision map, parcel map, or of the residential development application, 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 design review to the extent authorized by subdivision (i) of Government Code section 65583.2 if the design is not reviewed by the City prior to 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 Section 9131(d) and (e), 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 developer.

(7)

The transferred land shall be within the boundary of the proposed development or, if the City agrees, within onequarter (¼) mile of the boundary of the proposed development.

(8)

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.

(c)

Housing Development with Child Care Facility. When an applicant agrees to construct a housing development that conforms to the requirements of Section 9121(a) and includes a child care facility that will be located on the premises of, as part of, or adjacent to, the project, the following shall apply:

(1)

The City shall grant either of the following, unless it finds, based upon substantial evidence, that the community has adequate child care facilities:

(i)

An additional density bonus that is an amount of square feet of residential space that is equal to or greater than the amount of square feet in the child care facility, or

(ii)

An additional concession or incentive that contributes significantly to the economic feasibility of the construction of the child care facility.

(2)

The City shall require, as a condition of approving the housing development that the following occur:

(i)

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 targeted units are required to remain affordable pursuant to Section 9131(d) and (e).

(ii)

Of the children who attend the child care facility, the children of very low-income households, low-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, low-income households, or families of moderate income pursuant to Section 9121(a).

(d)

Apartment to Condominium Conversion Housing Development. When an applicant for approval to convert apartments to a condominium project pursuant to Section 9274 of this Code agrees to provide at least thirty-three (33) percent of the total units of the proposed condominium project to persons and families of low or moderate income, or fifteen (15) percent of the total units of the proposed condominium project to lower income households, and agrees to pay reasonably necessary administrative costs incurred by the City, the City shall grant either of the following, unless the apartments proposed for conversion constitute a housing development for which a density bonus or other incentives were previously provided under Government Code section 65915:

(1)

A density bonus to increase the number of units by twenty-five (25) percent over the number of apartments within the existing structure(s) proposed for conversion; or

(2)

Other incentives of equivalent financial value, which may include the reduction or waiver of requirements which the City may otherwise apply as conditions of conversion approval.

(i)

In reference to subsections 9121(d)(1) and 9121(d)(2), the City may place such reasonable conditions on the granting of a density bonus or other incentives of equivalent financial value including, but not limited to, conditions which assure continued affordability of units to subsequent purchasers who are persons and families of low and moderate income or lower income households and

(ii)

The application to convert apartments to a condominium project may be submitted to the City for preliminary review prior to submittal of formal request for subdivision map approvals pursuant to Section 9141. The City shall notify applicant in writing of the manner in which City will comply with this subsection (d) within ninety (90) days of receipt of a written proposal.

(iii)

An applicant shall be ineligible for a density bonus or other incentives or concessions under this subsection 9121(d) if the apartment complex proposed for conversion includes a parcel(s) on which rental dwelling units are or, if the dwelling units have been vacated or demolished in the five-year period preceding the application, have been subject to a recorded covenant, ordinance or law that restricts rents to a level affordable to persons and families of lower or very low-income; are subject to any form of rent or price control through the City's valid exercise of its police power; or are occupied by lower or very low-income household unless the proposed condominium project replaces those units in accordance with Section 65915(c)(3)(B) of the Government Code and either of the following applies:

a.

The proposed condominium project, inclusive of the units replaced, contains affordable units at the percentages set forth in Section 9121(a), or

b.

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

(e)

Ineligible Housing Development Project. An applicant shall be ineligible for a density bonus or any other incentives or concessions under this Chapter 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 five-year 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; or occupied by lower or very low-income households, unless the proposed housing development replaces those units in accordance with Government Code section 65915(c)(3)(B), and either of the following applies:

(1)

The proposed housing development, inclusive of the units replaced pursuant to this paragraph, contains affordable units at the percentages set forth in Section 9121(a), or

(2)

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

(Ord. No. 1528, Sec. 2, 10-4-22; Ord. No. 1535, Sec. 3, 6-20-23)

Amount of Density Bonus. The amount of density bonus granted shall be based on the category and percentage of affordable housing units proposed, as reflected in the following tables:

(a)

Lower Income Households. For housing developments meeting the criteria of Section 9121(a)(1), the density bonus shall be calculated as follows:

(b)

Very Low-Income Households. For housing developments meeting the criteria of Section 9121(a)(2), the density bonus shall be calculated as follows:

(c)

Moderate-Income Households. For housing developments meeting the criteria of Section 9121(a)(4), the density bonus shall be calculated as follows:

(d)

Senior Housing or Mobile Home Park. For housing developments meeting the criteria of Section 9121(a)(3), the density bonus shall be 20 percent of the number of senior housing units.

(e)

Transitional Foster Youth, Disabled Veterans, and Homeless Persons. For housing developments meeting the criteria of Section 9121(a)(5), the density bonus shall be 20 percent of the number of the type of units giving rise to a density bonus thereunder.

(f)

Student Housing. For housing developments meeting the criteria of Section 9121(a)(6), the density bonus shall be 35 percent of the student housing units.

(g)

One Hundred Percent Affordable. For housing developments meeting the criteria of Section 9121(a)(7), the following shall apply:

(1)

Except as provided in subsection (2) below, the density bonus shall be 80 percent of the number of units for lower income households.

(2)

If the housing development is located within one-half mile of a major transit stop, no maximum controls on density shall be imposed.

(h)

Land Donation. When an applicant for a tentative subdivision map, parcel map, or other residential development approval donates land to the City in accordance with Section 9121(b), the applicant shall be entitled to a 15-percent increase above the otherwise maximum allowable residential density for the entire development, as follows:

(Ord. No. 1528, Sec. 2, 10-4-22)

(a)

Applicability. An applicant for a density bonus may submit to the City a proposal for the specific concession(s) or incentive(s) that the applicant requests pursuant to this Chapter. The City must grant the concession(s) or incentive(s) requested by the applicant unless the City makes a written finding, based upon substantial evidence, of any of the following:

(1)

The concession or incentive does not result in identifiable and actual cost reductions to provide for affordable housing costs or for rents for the targeted units as specified in Section 9131.

(2)

The concession(s) or incentive(s) would have a specific adverse impact upon public health and safety or on any real property that is 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.

(3)

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

(b)

Number. The applicant shall be entitled to receive the following number of concessions or incentives:

(c)

Type. Incentives or concessions may include the following:

(1)

A reduction of site development standards or a modification of zoning code requirements or architectural design requirements that exceed 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, which result in identifiable and actual costs reductions, including, but not limited to:

(i)

Reduced minimum lot size.

(ii)

Reduced minimum setbacks.

(iii)

Reduced minimum street standards such as reduced minimum street width.

(iv)

Increased maximum lot coverage.

(v)

Increased building height.

(vi)

Reduced ratio of vehicular parking spaces that would otherwise be required.

(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, including the City's General Plan, where the proposed housing project will be located; or

(3)

Other regulatory incentives or concessions proposed by the applicant or the City that result in identifiable and actual cost reductions.

(4)

The granting of a concession or incentive shall not be interpreted, in and of itself, to require a general plan amendment, zoning change, or other discretionary approval. This provision is declaratory of existing law.

(Ord. No. 1528, Sec. 2, 10-4-22)

9124 - WAIVERS OR REDUCTIONS OF DEVELOPMENT STANDARDS

(a)

Applicability. An Applicant may submit to the City a proposal for the waiver or reduction of development standards and may request a meeting with the City. A proposal for the waiver or reduction of development standards pursuant to this section shall neither reduce nor increase the number of incentives or concessions to which the applicant is entitled pursuant to Section 9123.

(b)

Review. The waiver or reduction shall be granted unless the City Council adopts a written finding, based on substantial evidence, of either the following:

(1)

The waiver or reduction of development standards would have a specific adverse impact upon health, or safety, and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact.

(2)

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

(3)

The waiver or reduction of development standards would be contrary to state or federal law.

(Ord. No. 1528, Sec. 2, 10-4-22)

(a)

Applicability. The City may approve additional assistance to facilitate the inclusion of more Targeted Units than are required by this Chapter.

(b)

Type. The City Council may approve any of the following in its sole discretion, including, but not limited to:

(1)

A density bonus greater than that required in Section 9121 of this Chapter.

(2)

A proportionately lower density bonus than what is required by this Chapter when the housing development does not meet the requirements of this Chapter.

(3)

Waived, reduced, or deferred planning, plan check, building permit and/or development impact fees.

(4)

Direct financial aid (e.g., Low- and Moderate-Income Housing Asset Funds, community development block grant funds) in the form of a loan or a grant to subsidize or provide low interest financing for on or off-site improvements,

contribution to land, or construction costs.

(Ord. No. 1528, Sec. 2, 10-4-22)

(a)

An applicant for a commercial development shall be entitled to incentives mutually agreed upon by the applicant and the City when such developer has entered into an agreement for partnered housing to contribute affordable housing in accordance with the provisions of Government Code Section 65915.7 for as long as such section remains in effect.

(b)

The partnered housing agreement shall include all of the following provisions:

(1)

The housing development shall be located either on the site of the commercial development or on a site within the City that is within one-half mile of a major transit stop and is located in close proximity to public amenities, including schools and employment centers.

(2)

At least thirty (30) percent of the total units in the housing development shall be made available at affordable ownership cost or affordable rent for low- income households, or at least fifteen (15) percent of the total units in the housing development shall be made available at affordable ownership cost or affordable rent for very low-income households.

(3)

The commercial developer must agree either to directly build the target units; donate a site consistent with subsection (b)(1) of this section for the target units; or make a cash payment to the housing developer for the target units.

(c)

If the developer of the affordable units does not start construction in accordance with the timelines set forth in the partnered housing agreement, the City shall withhold certificates of occupancy for the commercial development until the affordable units are completed.

(d)

Any approved partnered housing agreement shall be described in the City's housing element annual report as required by Government Code Section 65915.7(k).

(Ord. No. 1535, Sec. 4, 6-20-23)