Tustin Municipal Code Part 4 Application and Housing Incentives Agreement

(a) Application Requirements. An applicant proposing a housing development pursuant to this Chapter, shall submit a preliminary application to the Community Development Department prior to the submittal of any formal request for approval of a permit for a housing development. Applicants are encouraged to schedule a pre-application conference with the Community Development Director to discuss and identify potential application issues. No charge will be required for the pre-application conference. A preliminary application shall include the following information:

(1) Existing land uses on the property, including any existing rental unit(s).

(2) A request for density bonus by specifying the code section of which the density bonus shall be awarded.

(3) A description of the proposed housing development including the total number of units, targeted units by income category, and density bonus units bedroom mix.

(4) The zoning and general plan designations and assessor's parcel number(s) of the project site.

(5) The location of the targeted units within the housing development.

(6) The number of additional housing units requested as the density bonus for the housing development.

(7) A vicinity map and preliminary site, floor, and elevation plans, drawn to scale, including building footprints, driveway, and parking layout.

(8) A description of any requested concession(s), incentive(s), waiver(s), modified parking standards, and/or development bonus requested and an explanation of why each is needed. In requesting a concession, incentive, waiver, modified standard of parking or waiver or reduction of development standards, the applicant shall explain how granting the request will result in identifiable and actual cost reductions for the development.

(9) If a density bonus is requested for a land donation, the application shall show the location of the land to be dedicated and provide evidence that each of the conditions included in Section 9121(b) can be met.

(10) If an additional density bonus or concession or incentive is requested for a child care facility, the application shall show the location and square footage of the child care facility and provide evidence that each of the conditions in Section 9121(c) can be met.

(11) The applicant shall acknowledge in writing that a housing incentive agreement is required.

(b) Application Review.

(1) Following receipt of the application, the City shall notify the applicant whether the application is complete in a manner consistent with the timelines specified in specified in Government Code section 65943.

(2) An application for a density bonus and/or concession or incentive pursuant to this Chapter shall be processed concurrently with any other permit application(s) required for the housing development. At a minimum, the application shall contain all the information described in Section 9141(a) plus all other required information. Final approval or disapproval of an application shall be made by the City Council; upon recommendation of the Planning Commission for those housing developments which require Planning Commission entitlements; except that no approval shall be effective until the City or the Housing Authority (as applicable) and applicant have executed a housing incentive agreement.

(3) Where the applicant proposes that the City provide optional additional assistance as described in Section 9125 herein, the proposal shall be considered by the Planning Commission for recommendation to the City Council, or the Housing Authority where the Housing Authority funds are requested, for their preliminary approval unless such housing development does not require Planning Commission entitlements in which case, the City Council or the Housing Authority, as applicable, can authorize such assistance. A preliminary approval shall indicate the City Council's approval of the proposal for processing, but no optional additional assistance shall be deemed approved until embodied in the housing incentive agreement.

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

(a) Agreement Requirement. Once an application for a density bonus and/or concession or incentive is approved pursuant to Section 9141(b), a housing incentive agreement shall be prepared consistent with any conditions of approval related thereto subject to review and approval as to form by the City Attorney. The City (or the Housing Authority) approval and execution responsibilities for such agreement shall be as identified in the approval of the housing development application pursuant to Section 9141(b). Where such identification is not made by the City Council, such agreement shall be subject to approval by the City Council.

(b) Agreement Review. The final approval of any documents as required by the agreement shall take place prior to or concurrent with final map approval, or, where a map is not being processed, prior to issuance of building permits for any parcels in the housing incentive agreement. The agreement shall be recorded with the Orange County Recorder concurrent with the recording of the final map or within thirty (30) days of approval if a map is not processed and shall be binding to all future owners and successors in interest.

(c) Agreement Contents. The agreement shall include at least the following:

(1) The total number of units approved for the housing development including the number of targeted units.

(2) A description of the household income group to be accommodated by the housing development, and the standards for determining the corresponding affordable rent or affordable housing cost.

(3) The location, unit sizes (square feet), and number of bedrooms of targeted units.

(4) Affordability restrictions for low and very low-income targeted units for at least fifty-five (55) years from the date the building(s) is first occupied or a longer period of time if required by the construction or mortgage financing assistance program, mortgage insurance program, rental subsidy program.

(5) A schedule for completion and occupancy of the targeted units.

(6) A description of the concessions or incentive(s), or optional additional assistance being provided by the City or the Housing Authority.

(7) A description of remedies for breach of the agreement by either party (the City may identity tenants or qualified purchasers as third-party beneficiaries under the agreement).

(8) A provision, consistent with City Council Policy, establishing a preference for the purchase or rental of the target units by Tustin residents or individuals employed within the City of Tustin.

(9) Other provisions to ensure implementation and compliance with this Chapter and State Law.

(d) In the case of for-sale housing developments or conversion of apartments to a condominium project consistent with this Chapter, the agreement shall provide for the following regarding the initial sale and use of targeted units during the applicable use restriction period and for the respective affordability period as set forth in Section 9131:

(1) Targeted units shall, upon initial sale, be sold to eligible very low-income households, low-income households or persons and families of moderate income consistent with this Chapter or as approved by the City Council at an affordable housing cost or be made available to qualified residents in a senior citizen housing development.

(2) Targeted units shall be initially owner-occupied by eligible very low-, low-income, or moderate-income households, or by senior citizens in the case of a senior citizen housing development or mobile home park that limits residency based on age requirements for housing for older persons.

(3) The agreement shall provide for the continued affordability of the very low-income, low-income, and moderate-income targeted units for the applicable affordability period.

(4) The agreement shall provide for the recapture by the City of its proportionate share of appreciation upon resale of the targeted units in accordance with this Chapter.

(e) In the case of rental housing developments, the agreement shall provide for the following conditions governing the use of targeted units during the affordability period:

(1) The rules and procedures for qualifying tenants, establishing affordable rent, filling vacancies, and maintaining targeted units for qualified tenants;

(2) Provisions requiring the owner to verify tenant incomes and maintain books and records to demonstrate compliance with this Chapter and State Law.

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