Chapter 17.175 — DENSITY BONUS

The purpose of this chapter is to implement the State Density Bonus Law, California Government Code Section 65915 et seq. To the extent practicable, the citation to the governing statutory provision is included next to the implementing ordinance section. If any provision of this chapter conflicts with state law, the latter shall control. Applicable statutes should be consulted for amendments prior to applying the ordinance provision. (Ord. 247, 1/15/2025)

• A. Application. Any person that desires a density bonus must make an application on a form approved by the Director at the time of submitting an entitlement application for the housing development for which a density bonus is requested.

• B. Incentives and Concessions. When an applicant seeks a density bonus for a housing development or for the donation of land for housing within the City, the City must provide the applicant incentives or concessions for the production of housing units and child care facilities as provided in this chapter.

• C. Available Density Bonus Options. The approval authority will grant one density bonus, the amount of which will be as specified in Section 17.175.050 , and incentives or concessions as described in Section 17.175.030 , when an applicant for a housing development 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 one of the following:

1. 10% of the total units of a housing development, including a shared housing building development, for lower income households.

2. Five percent of the total units of a housing development, including a shared housing building development, for very low-income households.

3. A senior citizen housing development. For purposes of this subsection, "development" includes a shared housing building development.

4. 10% of the total dwelling units in a common interest development for moderate income households, provided that all units in the housing development are offered to the public for purchase.

5. 10% 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, or homeless persons, as defined in the Federal McKinney-Vento Homeless Assistance Act (42 U.S.C. Section 11301 et seq.).

6. 20% of the total units for lower income students in a student housing development that meets the requirements of Government Code Section 65915(b)(1)(F) .

7. 100% 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, except that up to 20% 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.

• D. Additional Density Bonus. Provided that the resulting housing development would not restrict more than 50% of the total units to moderate-income, lower income, or very low income households, an additional density bonus shall be calculated pursuant to Government Code Section 65915(v) .

• E. Applicant's Election of Basis for Bonus. For purposes of calculating the amount of the density bonus pursuant to Section 17.175.050 , the applicant who requests a density bonus pursuant to this section must elect whether the bonus will be awarded on the basis of subsection (C)(1), (2), (3), (4), (5), (6), or (7) of this section.

• F. Continued Affordability.

  1. An applicant must agree to the continued affordability of all low- and very low-income rental units that qualified the applicant for the award of the density bonus for 55 years or a longer period of time if required by any applicable construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy program.

     • a. Rents for the lower income density bonus units in a housing development receiving a density bonus under subsection (C)(1), (2), (3), (4), (5), or (6) must be set at an affordable rent.

     • b. Rents for all units in a housing development receiving a density bonus under subsection (C)(7) shall be as follows:

       • i. The rent for at least 20% of the units in the development shall be set at an affordable rent.

       • ii. The rent for the remaining units in the development shall be set at an amount consistent with the maximum rent levels for lower income households, as those

rents and incomes are determined by the California Tax Credit Allocation Committee.

2. The City will require an equity-sharing agreement pursuant to Government Code Section 65915(c)(2) , unless such an agreement would be in conflict with the requirements of another public funding source or law or may defer to the recapture provisions of the public funding source. The following apply to the equity sharing agreement:

   • a. Upon resale, the seller of the unit may retain the value of any improvements, the down payment, and the seller's proportionate share of appreciation. The City will recapture any initial subsidy and its proportionate share of appreciation, if any, which amount must then be used within five years for any of the purposes that promote home ownership, as described in California Health and Safety Code Section 33334.2(e) .

   • b. The City's initial subsidy will be equal to the fair market value of the home at the time of initial sale, minus the initial sale price to the moderate-income household, plus the amount of any down payment 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 will be used as the initial market value.

   • c. The City's proportionate share of appreciation will be equal to the ratio of the initial subsidy to the fair market value of the unit at the time of initial sale.

3. Notwithstanding subsection (F)(2), for-sale units may be purchased by a qualified nonprofit housing corporation pursuant to a recorded contract that satisfies all of the requirements specified in paragraph (10) of subdivision (a) of Section 402.1 of the Revenue and Taxation Code and includes all of the requirements stated in Government Code Section 65915(c)(2) (A)(ii) .

• G. Eligibility. 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; subject to any other form of rent or price control through a public entity's valid exercise of its police power; or occupied by lower or very low income households, unless the proposed housing development replaces those units, as "replace" is defined in 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 subsection, contains affordable units at the percentages set forth in subsection C of this section.

  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.

1. A housing development project proposed on a site where residential uses were present at any point in the 5 years preceding the date of application may be subject unit replacement requirements.

2. Rents for such units shall be set at an affordable rent, as defined in Section 50053 of the Health and Safety Code.

3. For-sale units used to qualify the applicant for the award of an affordable housing benefit shall be subject the requirements of 10-2.2104(b), For-sale units.

4. For-sale moderate income units shall qualify a project as a qualified housing development project, provided all units in the development are offered to the public for purchase.

5. Units used to qualify a project in this category shall be subject to a recorded affordability restriction of 55 years and shall be provided at the same affordability level as very low income units.

6. All units in a student housing development shall 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.

7. Shared housing building development projects that meet other requirements shall qualify.

8. All units in a 100% affordable housing project (including base units and bonus units granted under this chapter) must be affordable to very low, low, or moderate income households (with a maximum of 20% available to households with moderate income). At least 20% of the total units shall be rented at an affordable rate per Section 50056 of the Health and Safety Code.

9. The rent for remaining units shall be consistent with the requirements for lower-income households as determined by the California Tax Credit Allocation Committee.

• 1 Incentives and concessions shall be granted pursuant to Section 17.175.030 (Incentives and 0. Concessions).

• 1 If the project is located within one-half mile of a major transit stop, the applicant may also request a height 1. increase of up to 3 additional stories, or 33 feet.

• 1 If existing development standards will have the effect of physically precluding the construction of a

2. qualified housing development project at the densities or with the concessions or incentives permitted under this section, an applicant may request a waiver or reduction of development standards.

• 1 Density bonus shall be the percent of the number of the type of units giving rise to the density bonus, see 3. Section 17.175.050 (Calculation of Density Bonus) for additional details.

• 1 Density bonus shall be 80% of the number of units for lower income households unless the housing 4. development is located within one-half mile of a major transit stop or within a very low vehicle travel area, in which case the City shall not impose any maximum controls on density. Projects that receive a waiver from any maximum controls on density shall only be eligible for a waiver or reduction of development standards per note 10 above unless the City agrees to additional waivers or reductions in development standards.

(Ord. 247, 1/15/2025)

• A. Proposal by Applicant. An applicant for a density bonus pursuant to Section 17.175.020 may submit a proposal for the specific incentives or concessions that the applicant requests pursuant to this chapter and may request a meeting with the Director.

• B. Number of Incentives. The applicant may receive the number of incentives and concessions as listed in Table 17.175.020-1.

• C. Findings. The approval authority must grant the concessions or incentives requested by the applicant, unless it makes a written finding, based upon substantial evidence, that:

  1. The concession or incentive does not result in identifiable and actual cost reductions to provide for affordable housing costs or for affordable rents as specified in Section 17.175.020 (E);

  2. The concession or incentive would have a specific, adverse impact upon public health and safety, or the physical environment, or on any real property 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; or

3. The concession or improvement would be contrary to state or federal law.

(Ord. 247, 1/15/2025)

• A. Proposal by Applicant. An applicant may submit to the City a proposal for the waiver or reduction of development standards that the applicant believes will have the effect of physically precluding the construction of the proposed housing development at the densities or with the concessions or incentives permitted by this chapter and may request a meeting with the Director. A proposal for the waiver or reduction of development standards shall neither reduce nor increase the number of incentives or concessions that the applicant is entitled to under Section 17.175.030 (Incentives and Concessions).

• B. Findings. The approval authority must waive or reduce the development standard requested by the applicant, unless it makes a written finding, based upon substantial evidence, that:

1. The development standard does not physically preclude the construction of the proposed housing development at the densities or with the concessions or incentive permitted by this chapter;

2. The waiver or reduction would have a specific, adverse impact upon public health and safety, or the physical environment, or on any real property listed in the California Register of Historical Resources, and there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact; or

3. The waiver or reduction would be contrary to state or federal law. (Ord. 247, 1/15/2025)

• A. The amount of density bonus to which the applicant is entitled will vary according to the amount by which the percentage of affordable housing units exceeds the percentage established in Section 17.175.050 (Calculation of Density Bonus) the applicant may elect to accept a lesser percentage of density bonus.

• B. For qualified for sale or rental housing development projects with at least 10% of base units affordable to lower income households, the density bonus shall be calculated as follows:

• C. For qualified for sale or rental housing development projects with at least five percent of base units affordable to very low-income households, the density bonus shall be calculated as follows:

Table 17.175.050-2 Very Low-Income Unit Density Bonus Percentage Very Low Income Units Percentage Density Bonus 15 50

• D. For qualified for-sale housing development projects with at least 10% of base units affordable to moderate income households, the density bonus shall be calculated as follows:

• E. All other qualified housing development projects shall be granted density bonuses consistent with Section 17.175.020 (General Density Bonus Provisions).

• F. Increased density bonus.

An increase in density bonus, in addition to any increase described in in Chapter 17.175.050, Sections B through E, above, shall be granted when a qualified housing development project includes rental or for-sale units affordable to very low-income households or moderate income households above the requirements identified in Section 17.175.050 , and meets any of the following requirements:

1. Provides 24% of the total units to low-income households.

2. Provides 15% of the total units to very low-income households.

3. Provides 44% of the total units to moderate-income households.

Qualified housing development projects eligible for an increase in density bonus shall be granted an additional increase according to the amount by which the percentage of very low income units or moderate income units exceeds the percentages established in Chapter 17.175.050, Sections B through E. Eligibility under this section shall be calculated using total units.

The additional density bonus for eligible projects shall be calculated using the number of base units, and excluding bonus units, as follows:

(Ord. 247, 1/15/2025)

• A. Criteria for Additional Density Bonus. An applicant for a housing development will be eligible for the additional density bonus described in this section if all of the following conditions are met:

  1. The applicant donates and transfers land to the City no later than the date of approval of the final subdivision map or 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 10% of the total number of residential units in the applicant's proposed housing development.

  3. The transferred 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 land use designation, is appropriately zoned for development as affordable housing at the density described in Government Code Section 65583.2(c)(3) , and is or will be served by adequate public facilities and infrastructure.

     • a. The land must have appropriate zoning and development standards to make the development of the affordable units feasible.

     • b. No later than the date of approval of the final subdivision map, parcel map, or of the residential development, the transferred land must 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 local government may subject the proposed development to subsequent design review, to the extent authorized by California Government Code Section 65583.2(i) , if the design is not reviewed by the City prior to the time of transfer.

  4. The transferred land and the affordable units will be subject to a deed restriction ensuring continued affordability of the units consistent with Section 17.175.020(F)(1) and (2), which restriction will be recorded on the property at the time of the transfer.

  5. 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 such a housing developer.

  6. The transferred land must be within the boundary of the proposed housing development or, if the City agrees, within one-quarter mile of the boundary of the proposed housing development.

  7. 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.

• B. Grant of Additional Density. When an applicant for a housing development approval donates land to the City that meets the criteria of subsection A of this section, the applicant will be

entitled to an increase above the otherwise maximum allowable residential density under the applicable zoning and the land use designation of the Wildomar General Plan for the entire development, as follows:

• C. Limitations. This increase provided for in this section is in addition to any increase in density mandated by Section 17.175.050(C) , up to a maximum combined density increase of 35%, if an applicant seeks increases required pursuant to both this section and Section 17.175.050(C) .

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

2. Nothing in this section will be construed to enlarge or diminish the authority of the City to require a developer to donate land as a condition of development.

(Ord. 247, 1/15/2025)

• A. Grant of Additional Density or Concessions. When an applicant proposes to construct a housing development that conforms to the requirements of Section 17.175.020(C) and includes a child care facility that will be located on the premises of, as part of, or adjacent to, the housing development, the approval authority must grant one of the following:

  1. 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

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

• B. Conditions of Approval. The approval authority will require, as a condition of approving the housing development, that the following occur:

  1. The child care facility must 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 17.175.020(F) .

  2. Of the children who attend the child care facility, the children of very low income households, lower income households, or moderate income households must 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 moderate income households pursuant to Section 17.175.020(C) .

• C. Adequate Facilities Exception. Notwithstanding any requirement of this section, the Planning Commission or City Council is not required to provide a density bonus or concession for a child care facility if it finds, based upon substantial evidence, that the community has adequate child care facilities.

• (Ord. 247, 1/15/2025)

Nothing in this chapter will be construed to prohibit the approval authority from granting a density bonus greater than what is described in this chapter for a housing development that meets the requirements of this chapter, or from granting a proportionately lower density bonus than what is required by this chapter for housing developments that do not meet the requirements of this chapter. (Ord. 247, 1/15/2025)

• A. Maximum Ratios. Upon the request of the applicant, the City will not require a vehicular parking ratio, inclusive of handicapped and guest parking, of a housing development meeting the criteria of Section 17.175.050 that exceeds the following ratios:

  1. Zero to one bedroom: one on-site parking space.

  2. Two to three bedrooms: one and one-half on-site parking spaces.

  3. Four or more bedrooms: two and one-half parking spaces.

• B. Special Situations.

  1. If a development includes at least 20% low-income units for housing developments meeting the criteria of Section 17.175.020(C)(1) or at least 11% very low income units for housing developments meeting the criteria of Section 17.175.020(C)(2) is located within one-half mile of a major transit stop, and there is unobstructed access to the major transit stop from the development, then, upon the request of the developer, the City shall not impose a vehicular parking ratio, inclusive of parking for persons with a disability and guests, that exceeds one-half space per unit.

  2. If a development consists solely of rental units, exclusive of a manager's unit or units, with an affordable housing cost to lower income families, then, upon the request of the developer, the City shall not impose vehicular parking standards if the development meets either of the following criteria:

     • a. 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.

     • b. 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.

  3. If a development meets the criteria of Section 17.175.020(C)(7) then, upon the request of the developer, the City shall not impose vehicular parking standards if the development meets any of the following criteria:

     • a. 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.

     • b. 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.

     • c. 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. Development that is a special needs housing development shall have either paratransit service or unobstructed access, within one-half mile, to fixed bus route service that operates at least eight times per day.

s 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. Development that is a special needs housing development shall have either paratransit service or unobstructed access, within one-half mile, to fixed bus route service that operates at least eight times per day.

• C. Provision of Parking. If the total number of parking spaces required for a housing development is other than a whole number, the number will be rounded up to the next whole number. For purposes of this section, a housing development may provide on-site parking through tandem parking or uncovered parking, but not through on-street parking.

• D. Additional Incentives. This section applies to a development that meets the requirements of Section 17.175.050(C) , but only at the request of the applicant. An applicant may request additional parking incentives or concessions beyond those provided in this section, subject to Section 17.175.030 . A request pursuant to this section shall neither reduce nor increase the number of incentives or concessions to which the applicant is entitled pursuant to Section 17.175.030 .

• (Ord. 247, 1/15/2025)

The granting of a density bonus, concession or incentive pursuant to this chapter shall not be interpreted, in and of itself, to require a general plan amendment, local coastal plan amendment, Zone change, or other discretionary approval.

(Ord. 247, 1/15/2025)