Chapter 16.214 — AFFORDABLE HOUSING INCENTIVES

This chapter is intended to implement the State Density Bonus Law in compliance with the requirements of California Government Code Sections 65915 and 65917 and the Streamlined Ministerial Approval Process in Government Code Section 65913.4. It also implements the adopted housing element of the general plan by providing incentives to encourage developers to construct affordable housing that will benefit lower income households.

All terms have the same meaning as the definitions in Government Code Sections 65913.4, 65915 and 65917 unless otherwise defined by Part VII of this Zoning Code.

A developer agreeing to construct at least twenty percent of a project's total housing units for lowerincome households or ten percent of the total units for very low-income households shall be granted an increase of five to thirty-five percent over the maximum residential density otherwise permitted, depending on the level of affordability, percentage of units that are affordable, and inclusion of child care facilities, and owner occupancy requirements in the housing development. Such Density Bonus shall be as set forth in California Government Code Section 65915. The provisions of this Chapter shall apply to the construction of projects that include five or more dwelling units.

16.214.04 - Density bonus for land donation, childcare facility, or condominium conversion.

A.

A housing development may be eligible for a density bonus for land donation pursuant to the requirements set forth in California Government Code Section 65915(g).

B.

A housing development that contains a childcare facility as defined in California Government Code Section 65915(h) may be eligible for density bonus, concession, or incentive pursuant to the requirements set forth in California Government Code Section 65915(h).

C.

Condominium conversions may be eligible for a density bonus, concession, or incentive pursuant to the requirements of California Government Code Section 65915.5.

A.

Each housing development is entitled to only one density bonus, which may be selected based on the percentage of either density bonus units affordable to very low-income households, low-income households, or moderate-income households, or the housing development's status as a senior citizen housing development except as provided in this Title. Density bonuses from more than one category may not be combined. An applicant may propose and the planning commission, at its own discretion, may grant an additional density bonus as an incentive to a project eligible for such a benefit pursuant to California Government Code Section 65915(d)(2).

B.

When calculating the number of permitted bonus units, any calculations resulting in fractional units shall be rounded to the next larger whole number.

C.

The bonus units shall not be included when determining the number of density bonus units required to qualify for a density bonus. When calculating the required number of density bonus units, any calculations resulting in fractional units shall be rounded to the next larger integer.

D.

The applicant may request a lesser density bonus than the housing development is entitled to, but no reduction will be permitted in the minimum percentages of required density bonus units pursuant to this chapter.

If an applicant proposes to provide at least one of the percentages of affordable units indicated in California Government Code Section the city shall grant one or more concessions or incentives, as defined in applicable state law, in order to facilitate achievement of the density bonus. The city shall only consider

applications for concessions or incentives when a developer is eligible for and seeks and receives a state density bonus.

A.

Additional density bonuses may be awarded by the planning commission based on the need for a particular housing type (e.g. 3- or 4-bedroom units).

B.

Waiver of development standards. Applicants may seek a waiver of a development standard through an exception permit in accordance with Chapter 16.608, Exceptions, in Accordance with the Requirements of Government Code Section 65915.

Nothing in this chapter requires the provision of direct financial incentives for the housing development, including but not limited to the provision of financial subsidies, publicly owned land, fee waivers, or waiver of dedication requirements. The city at its sole discretion may choose to provide such direct financial incentives.

Financial and certain other incentives may require payment of prevailing wages by the developer if required by state law.

16.214.09 - Density bonus agreement.

To ensure that the parties meet their responsibilities, the city requires the developer to enter into a legally recorded Affordable Housing Agreement I form approved by the director and the city attorney which shall at a minimum include the following:

A.

A description of the residential development, including whether the housing units which qualify the housing development for a density bonus will be rented or owner-occupied;

B.

Purchase of for sale units and occupancy of rental units shall be reserved for applicable moderate, low and very low income households as applicable, and as such income limits are established by the Department of Housing and Urban Development (HUD). These figures are updated from time to time and will be given to the developer or owners as they are made available to the city by HUD.

C.

Rents charged for the reserved units shall be no more than thirty percent of sixty percent of the area median income for moderate, and low income households and thirty percent of fifty percent for very lowincome households.

D.

The number, size and location of the housing units which qualify the housing development for a density bonus;

E.

Provisions and/or documents for resale restrictions, deeds of trust, right of first refusal or rental restrictions;

F.

Provisions for monitoring the ongoing affordability of the housing units which qualify the housing development for a density bonus, and the process for qualifying prospective resident households for income eligibility; and

G.

Any additional obligations relevant to the compliance with this chapter.

H.

Owner-Occupied Agreements. The affordable housing agreement shall also include the agreement requiring that purchaser of each owner-occupied housing unit which qualified the housing development for a density bonus to execute the city's standard form agreement as approved by the planning director and city attorney, to be recorded against the parcel, and which includes such provisions as the city may require to ensure continued compliance with this chapter.

I.

Agreements for Child Care Facilities and Land Donations. Density bonus housing agreements for child care facilities and land dedications shall ensure continued compliance with all conditions included in Government Code Section 65915 (h)(2)(A) and (B) and Government Code Section 65915 (g)(2)(A through H), respectively.

J.

The developer and/or future owner of the project, and each subsequent purchaser thereof shall be required to reserve the lower income units at the controlled rents for a minimum of fifty-five years or such other period as required or permitted by state law.

K.

To certify that the current owner has complied with the terms of the agreement, the owner shall file a certification of compliance form with the city on an annual basis. A copy of this form is available from the planning division. This form indicates the lessees of the controlled units, their respective unit numbers, monthly rents, sales prices, household incomes, and phone numbers. Lease agreements for each of the units shall also be attached.

L.

Should the owner or developer not be in compliance with the terms of the agreement they shall be subject to a fine established by the city council and the length of the agreement shall be extended on an equivalent day-for-day basis, which shall be accessed on the property tax rolls pursuant to the administrative citation procedures in the Vallejo Municipal Code.

M.

To compensate the city for processing costs, the developer or owner will be required to pay the city a fee established by the city council and adopted in the annual master fee schedule.

N.

Applicability. All projects with approved density bonuses prior to the formulation of this policy are subject to the restrictions that were placed on them as conditions of their density bonuses. Projects that were constructed and occupied prior to the formulation of this policy are exempt from any density bonus restrictions.

16.214.10 - Application process.

A.

Prior to the submittal of any formal permit request, a developer shall submit to the city a preliminary proposal for a residential project for which a density bonus is sought. A formal request for the density bonus pursuant to the requirements of this chapter may then be submitted to the city concurrently with the application(s) for any necessary permits. This request shall be considered by the planning commission along with the required affordable housing agreement after any necessary permits are approved by the appropriate body (or concurrently if city council approval is required as well).

B.

All requests for density bonuses, concessions and incentives, any additional city incentives, parking reductions, and waivers provided pursuant to this chapter, shall be submitted with the BMR Housing Plan required by this chapter. The developer shall include the following additional information in the Below Market Rate (BMR) Housing Plan:

1.

A site plan depicting the number and location of all market rate units, BMR units, density bonus BMR units, and bonus units.

2.

A calculation of the maximum number of dwelling units permitted by this title and the general plan, excluding any density bonus.

3.

The targeted income level of the proposed density bonus BMR units.

Description of any requested concessions, incentives, waivers of development standards, or parking reductions requested pursuant to Section 16.214.06, State-Mandated Concessions and Incentives.

C.

For all concessions and incentives except those listed in this chapter, concessions not requiring financial pro forma from applicant, a pro forma demonstrating that the requested concessions and incentives result in identifiable, financially sufficient, and actual cost reductions. The pro forma shall include:

1.

The actual cost reduction achieved through the concession or incentive; and

2.

Evidence that the cost reduction allows the developer to provide affordable rents or affordable sales prices.

D.

For waivers of development standards: evidence that the development standards for which the waivers are requested will have the effect of physically precluding the construction of the residential development with the density bonus, concessions, or incentives requested.

E.

The director may require that any pro forma submitted pursuant to this chapter include information regarding capital costs, equity investment, debt service, projected revenues, operating expenses, and such other information as is required to evaluate the pro forma. The cost of reviewing any required pro forma data, including but not limited to the cost to the city of hiring a consultant to review the pro forma, shall be borne by the developer.

F.

If a mixed-use building or development is proposed, the developer shall provide evidence that nonresidential land uses will reduce the cost of the residential development, and the nonresidential land uses are compatible with the residential development and existing or planned surrounding development.

G.

If a density bonus is requested for a land donation, the BMR Housing Plan shall show the location of the land to be dedicated, provide proof of site control, and provide evidence that each of the findings included in California Government Code Section 65915(g) can be made.

H.

If a density bonus or concession is requested for a childcare facility or condominium conversion, the BMR Housing Plan shall provide evidence that the findings in California Government Code Section 65915(h) or 65915.5, as appropriate, can be made.

I.

Concessions Not Requiring Financial Pro Forma from Applicant. The following concessions and incentives shall be available to the builder without any requirement that the builder submit a pro forma to the city demonstrating that the requested concession or incentive results in identifiable, financially sufficient, and actual cost reductions:

1.

A reduction in the usable open space requirement;

2.

An increase in the maximum lot coverage requirement;

3.

A reduction in minimum lot dimensions;

4.

A reduction in minimum distance between buildings;

5.

A reduction in landscaping area requirements;

6.

Deferral until occupancy of development impact fees.

16.214.11 - City review of application for state mandated density bonus, concessions, and incentives.

Any request for a density bonus, concessions, incentives, waivers, or parking reductions shall be processed, reviewed, and approved or denied by the review authority (Planning commission or the city council on appeal) concurrently with the BMR Housing Plan required for the housing development. In accordance with state law, neither the granting of a concession or incentive, nor the granting of a density bonus, shall be interpreted, in and of itself, to require a general plan amendment, zoning change, or other discretionary approval.

16.214.12 - Findings for approval of state-mandated density bonus, concessions, and incentives.

A.

The housing development is eligible for a density bonus and any concessions, incentives, waivers, or parking reductions requested.

B.

Any requested incentive or concession will result in identifiable, financially sufficient, and actual cost reductions based upon appropriate financial analysis and documentation if required.

C.

The density bonus is based all or in part on donation of land, the findings included in California Government Code Section 65915(g).

D.

If the density bonus, incentive, or concession is based all or in part on the inclusion of a childcare facility, the findings included in California Government Code Section 65915(h).

E.

If the incentive or concession includes mixed-use development, the findings included in California Government Code Section 65915(k)(2).

F.

If a waiver is requested, the development standards for which a waiver is requested would have the effect of physically precluding the construction of the residential development with the density bonus, concessions, or incentives permitted.

16.214.13 - Findings for denial of incentives, concessions or waivers.

A.

Denial of concessions and incentives. If the findings required by the previous chapter can be made, the decision-making body may deny a concession or incentive only if it makes a written finding, supported by substantial evidence, of either of the following:

1.

The concession or incentive is not required to provide for affordable rents or affordable ownership costs.

2.

The concession or incentive would have a specific adverse impact upon public health or safety or the physical environment or on any real property that is listed in the California Register of Historical Resources, and 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. For the purpose of this division, specific adverse impact means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified, written public health or safety standards, policies, or conditions as they existed on the date that the application for the residential development was deemed complete.

3.

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

B.

Denial of waivers. If the findings required by the previous chapter can be made, the review authority may deny a waiver only if it makes a written finding, supported by substantial evidence, of any of the following:

1.

The waiver would have a specific adverse impact upon health, safety, or the physical environment, and 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. For the purpose of this chapter, specific adverse impact means a significant, quantifiable, direct, and unavoidable impact, based on objective, and identified, written public health or safety standards, policies, or conditions as they existed on the date that the application was deemed complete.

2.

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

3.

The waiver would be contrary to state or federal law.

c.

Denial of incentive or bonus for childcare center. If the findings required by the previous chapter can be made, the review authority may deny a density bonus, incentive, or concession that is based on the provision of childcare facilities only if it makes a written finding, based on substantial evidence, that the city already has adequate childcare facilities.

D.

Appeals. The developer may appeal the denial of a request for a density bonus or a concession or incentive to the city council.

An applicant proposing a residential development that includes at least fifty percent affordable units and meets the eligibility criteria of Government Code Section 65913.4 may request that the entitlement be approved through a streamlined, ministerial approval process. Projects that meet the eligibility criteria in this chapter and the requirements of the state law shall be approved under a ministerial approval process, which exempts them from environmental review under the California Environmental Quality Act. This process also exempts such projects from any discretionary review that would otherwise be required by this Zoning Code, including, but not limited to requirements for use permit approval or development review and does not allow public hearings.

A.

Eligibility criteria for streamlined ministerial approval. The project shall meet all the following requirements pursuant to Government Code Section 65913.4:

1.

The development shall be multi-family housing that contains two or more dwelling units that will be offered for rental or for sale. This definition does not include accessory dwelling units (ADU) unless the project is for new construction of a single-unit home with an attached ADU in a zone that allows multi-family development.

2.

At least two-thirds of the square footage of the development shall be designated for residential use.

3.

The developer shall dedicate at least fifty percent of the units in the project to households making eighty percent or less of the area median income and restricted by an agreement.

4.

The development shall be consistent with all applicable standards of this Zoning Code.

5.

At least seventy-five percent of the perimeter of the development site shall be developed with urban uses. For purposes of this chapter, parcels that are only separated by a public street or highway shall be adjacent.

6.

The zoning district or general plan designation of the site shall allow for residential or residential mixed-use development as applicable to the project.

7.

The project shall meet the parking requirements in Chapter 16.508, Off-Street Parking and Loading, of the Zoning Code or a maximum of one parking space per unit, whichever is lower. However, no parking will be required if the project is located:

a.

Within one half mile of a public transit stop,

b.

A designated architecturally or historically significant district;

c.

Within one block of a car-share vehicle station; or

d.

In a permit parking area but permits are not offered to development occupants.

The project site shall not be located in any of the following areas:

a.

Wetlands as defined by federal law;

b.

Within a flood plain designated by the Federal Emergency Management Agency (FEMA) or a FEMAdesignated regulatory floodway prime farmland or farmland of statewide importance as defined by the United States Department of Agriculture and designated on maps prepared by the State Department of Conservation or land zoned or designated for agricultural protection or preservation by a local voterapproved measure;

flood plain designated by the Federal Emergency Management Agency (FEMA) or a FEMAdesignated regulatory floodway prime farmland or farmland of statewide importance as defined by the United States Department of Agriculture and designated on maps prepared by the State Department of Conservation or land zoned or designated for agricultural protection or preservation by a local voterapproved measure;

c.

A very high fire hazard severity zone designated by the State Department of Forestry and Fire Protection;

d.

A hazardous waste site designated by the State Department of Toxic Substances Control (DTSC) unless it has been cleared for residential or residential mixed-use by DTSC;

e.

Within an earthquake fault zone unless the development meets applicable seismic protection building code standards;

f.

Protected species habitat area;

g.

Lands under a conservation easement or identified for conservation in an adopted conservation plan or other adopted natural resource protection plan;

h.

A site where development would require demolition of housing subject to recorded rent restrictions or occupied by tenants during the past ten years;

i.

A site where demolition of an historic structure listed on a local, state, or federal register;

j.

A site governed by the Mobile Home Residency Law, the Recreational, Vehicle Park Occupancy Law, the Mobile Home Parks Act, or the Special Occupancy Parks Act.

B.

Prevailing Wages. If a land division is required, the project developer shall pay prevailing wages to a trained and skilled workforce as defined in the state law and the project shall be financed with low-income housing tax credits.

C.

Application and Review Process. An applicant seeking approval under the requirements of this chapter and Government Code Section 65913.4 shall submit proposed plans and an application for streamlined approval on the form issued by the planning division. The application shall be accompanied by a fee adopted by the city council, affordable housing supplemental application form signed by property owner or authorized agent, and dimensioned plans that meet the current application and checklist requirements.

Chapter 16.215 - TRANSIT-ORIENTED DEVELOPMENT