Yorba Linda Municipal Code Ch. 18.19 Density Bonus

Note: Former Ch. 18.19, Density Bonus, Waivers and Incentives, derived from Ord. 2011-968; Ord. 2019-1056 and Ord. 2024-1110, was repealed by Ord. 2026-1132, 8/18/2026.

It is the intent of the City of Yorba Linda, in enacting this chapter, to facilitate the development of affordable housing and to implement the goals, objectives, and policies of the City's Housing Element. The purpose of this chapter is to provide for compliance with California Government Code Sections 65915 through 65918 as the same may be amended from time to time. This chapter provides regulations for considering density bonus, concession or incentive, or waiver or reduction of a development standard requests for the development of housing that is affordable to very low-, low-, and moderate-income households; foster youth; disabled veterans; homeless persons; lower income students; and senior citizens or other qualified residents, in accordance with California Government Code Section 65915.

(Ord. 2026-1132, 8/18/2026)

The following definitions shall be applicable to this chapter:

A.

"Affordable Housing Cost"

has the same meaning set forth in California Health and Safety Code Section 50052.5.

B.

"Affordable Housing Unit,"

for the purposes of this chapter, means a residential dwelling unit in a housing development that is subject to affordability restrictions established in accordance with this title and California Government Code Section 65915. For rental housing, an affordable housing unit is one for which the allowable monthly housing expenses do not exceed the affordable rent, as defined in Section 18.04.020. For ownership housing, an affordable housing unit is one sold at an affordable ownership housing cost, as defined in Section 18.04.020. In all cases, such units shall be covenant restricted (or otherwise legally encumbered) to remain affordable for a minimum term of 55 years for rental units and 45 years for for-sale units, unless otherwise required by applicable federal, state, or local regulations.

C.

"Affordable housing agreement,"

for the purposes of this chapter, means a recorded agreement between a property owner and the City to secure density bonus benefits, concessions or incentives, waivers or reduction of development standards pursuant to California Government Code Section 65915 and this chapter.

D.

"Affordable rent"

has the meaning set forth in California Health and Safety Code Section 50053.

E.

"Base density"

means the greatest number of units allowed under the zoning ordinance, specific plan, or land use element of the General Plan, or, if a range of density is permitted, means the greatest number of units allowed by the specific zoning range, specific plan, or land use element of the General Plan applicable to the project.

F.

"Childcare facility"

has the meaning set forth in California Government Code Section 65915(h), and means a child daycare facility, other than a family daycare home, including, but not limited to, infant centers, preschools, extended daycare facilities, and school-age childcare center. Childcare facility does not include public or private primary or secondary education facilities.

G.

"Common interest development"

has the meaning set forth in California Civil Code Section 4100.

H.

"Concession" or "incentive"

has the meaning set forth in California Government Code Section 65915(k), and includes:

A reduction in 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 Health and Safety Code Division 13, Part 2.5, Section 18901 et seq., including, but not limited to, a reduction in setback and square footage requirements and in the ratio of vehicular parking spaces that would otherwise be required that results in identifiable and actual cost reductions, to provide for affordable housing costs, as defined in Health and Safety Code Section 50052.5, or for rents for the targeted units to be set as specified in California Government Code Section 65915(c).

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 where the proposed housing project will be located.

Other regulatory concessions or incentives proposed by the developer or the city, county, or city and county that result in identifiable and actual cost reductions to provide for affordable housing costs, as defined in Health and Safety Code Section 50052.5, or for rents for the targeted units to be set as specified in California Government Code Section 65915(c).

I.

"Condominium conversion"

means the conversion of apartments, or other rental units, into ownership property that consists of an undivided interest in common in a portion of real property coupled with a separate interest within the boundaries of the dwelling unit.

J.

"Density bonus"

means a density increase over the maximum allowable residential density under applicable zoning and Land Use Element of the General Plan as of the date of application.

K.

"Development standard"

has the meaning set forth in California Government Code Section 65915(o)(2), and means a site or construction condition, including, but not limited to, a height limitation, setback requirement, floor area ratio, an onsite open-space requirement, or a parking ratio that applies to a housing development pursuant to any ordinance, General Plan element, specific plan, or other local condition, law, policy, resolution, or regulation. Development standards shall not mean an impact fee, inclusionary housing requirement, or dedication of land.

L.

"Disabled veteran"

has the meaning set forth in California Government Code Section 18541 and means any veteran who is currently declared by the United States Veterans Administration to be 10% or more disabled as a result of service in the armed forces. Proof of such disability shall be deemed conclusive if it is of record in the United States Veterans Administration.

M.

"Equivalent financial value"

means a concession or incentive that would result in a reduction in cost to the developer/property owner based upon the land cost per dwelling unit and shall be calculated based upon the difference in the value of the land with and without the density bonus.

N.

"Equivalent size dwelling unit"

means a dwelling unit that replaces another dwelling unit and contains at least the same number of bedrooms as the unit being replaced.

O.

"Foster youth"

has the meaning set forth in California Education Code Section 66025.9 and means a person in California whose dependency was established or continued by a court of competent jurisdiction, including a tribal court, on or after the youth's 13th birthday and who is no older than 25 years of age at the commencement of the academic year.

P.

"Homeless person"

shall have the same meaning as that phrase is defined in the Federal McKinney-Vento Homeless Assistance Act (42 U.S.C. Section 11302).

Q.

"Housing development"

has the meaning set forth in California Government Code Section 65915(i), and means a development project for five or more residential dwelling units, including mixed-use developments, subdivisions, or common interest development. A housing development may consist of residential units or unimproved residential lots, and either a project to substantially rehabilitate and convert an existing commercial building to residential use, or the substantial rehabilitation of an existing multifamily dwelling where the result of the rehabilitation would result in a net increase in available residential units. For purposes of calculating a density bonus, the residential units shall be on contiguous sites that are the subject of one development application but do not have to be based upon individual subdivision maps or parcels. The density bonus shall be permitted in geographic areas of the housing development other than the areas where the units for the lower income households are located.

R.

"Lower-income student"

has the meaning set forth in California Government Code Section 65915(o)(4) and means a student who has a household income and asset level that does not exceed the level for Cal Grant A or Cal Grant B award recipients as set forth in Education Code Section 69432.7(k)(1). The eligibility of a student to occupy a unit for lower income students under this section shall be verified by an affidavit, award letter, or letter of eligibility provided by the institution of higher education in which the student is enrolled or by the California Student Aid Commission that the student receives or is eligible for financial aid, including an institutional grant or fee waiver from the college or university, the California Student Aid Commission, or the federal government.

S.

"Senior citizen housing development"

has the mean set forth in California Civil Code Section 51.3(b)(4) and means a housing development developed, substantially rehabilitated, or substantially renovated for, senior citizens that has at least 35 dwelling units. Any senior citizen housing development which is required to obtain a public report under Business and Professions Code Section 11010, and which submits its application for a public report after July 1, 2001, shall be required to have been issued a public report as a senior citizen housing development under Business and Professions Code Section 11010. No housing development constructed prior to January 1, 1985, shall fail to qualify as a senior citizen housing development because it was not originally developed or put to use for occupancy by senior citizens.

T.

"Shared housing building"

has the meaning set forth in California Government Code Section 65915(o)(7) and means a residential or mixed-use structure, with five or more shared housing units and one or more common kitchens and dining areas designed for permanent residence of more than 30 days by its tenants. The kitchens and dining areas within the shared housing building shall be able to adequately accommodate all residents. If a local ordinance further restricts the attributes of a shared housing building beyond the requirements established in this section, the local definition shall apply to the extent that it does not conflict with the requirements of this section. A shared housing building" may include other dwelling units that are not shared housing units, provided that those dwelling units do not occupy more than 25% of the floor area of the shared housing building. A shared housing building may include 100% shared housing units.

U.

"Shared housing unit"

has the meaning set forth in California Government Code Section 65915(o)(7) and means one or more habitable rooms, not within another dwelling unit, that includes a bathroom, sink, refrigerator, and microwave, is used for permanent residence, that meets the "minimum room area" specified in Section R304 of the California Residential Code (California Code of Regulations Title 24, Part 2.5), and complies with the definition of "guestroom" in Section R202 of the California Residential Code. If a local ordinance further restricts the attributes of a shared housing building beyond the requirements established in this section, the local definition shall apply to the extent that it does not conflict with the requirements of this section. "Shared housing unit," for purposes of a residential care facility for the elderly, as defined in Health and Safety Code Section 1569.2, includes a unit without an individual kitchen where a unit may be shared by unrelated persons, and a unit where a room that may be shared by unrelated persons meets the "minimum room area" requirements of clause (i).

V.

"Student housing development"

has the meaning set forth in California Government Code Section 65915(o)(8) and means a development that contains bedrooms containing two or more bed spaces that have a shared or private bathroom, access to a shared or private living room and laundry facilities, and access to a shared or private kitchen.

W.

"Total units" or "total dwelling units"

has the meaning set forth in California Government Code Section 65915(o)(8) and means a calculation of the number of units that:

Excludes unit(s) added by a density bonus awarded pursuant to this chapter or any local law granting a greater density bonus.

Includes unit(s) designated to satisfy the requirements of Section 18.17.050, Affordability requirement.

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

X.

"Unobstructed access"

means access to a major transit stop that the income qualified resident of the housing development is able to walk or bike to from the residence without encountering natural or constructed impediments, which include, but are not limited to, freeways, rivers, mountains, harbors and other bodies of water, but does not include residential structures, shopping centers, parking lots, or rails used for transit with legal pedestrian access through the property.

Y.

"Waiver"

means a waiver or reduction of a development standard that would have the effect of physically precluding the construction of a development eligible for a density bonus at the density or with the concessions or incentives permitted by California Government Code Section 65915(e)(1).

Z.

"Very low vehicle travel area"

has the meaning set forth in California Government Code Section 65915(o)(10) and means an urbanized area, as designated by the United States Census Bureau, where the existing housing development generates vehicle miles traveled per capita that is below 85% of either regional vehicle miles traveled per capita or city vehicle miles traveled per capita. For purposes of this paragraph, "area" may include a travel analysis zone, hexagon, or grid. For the purposes of determining "regional vehicle miles traveled per capita" pursuant to this paragraph, a "region" is the entirety of incorporated and unincorporated areas governed by a multicounty or single-county metropolitan planning organization, or the entirety of the incorporated and unincorporated areas of an individual county that is not part of a metropolitan planning organization.

(Ord. 2026-1132, 8/18/2026)

A. The provisions of this chapter shall only apply to housing developments with five or more residential dwelling units.

B. Projects with special targeting, including foster youth, disabled veterans, homeless persons, or other populations with specific needs, may be subject to additional requirements or concessions/incentives as outlined in applicable local, state, or federal regulations.

C. This chapter implements California Government Code Sections 65915 through 65918. The provisions of State Density Bonus Law apply across all zoning districts. Nothing in this chapter shall be construed to require the City to grant any concession or incentive, waiver or reduction of a development standard, or modification beyond what is required by state law. Where conflicts exist, state law shall prevail.

Applicants for qualifying housing developments are eligible for density bonuses and regulatory benefits under California Government Code Sections 65915(b), (c), (f), (g), (h), (v), and 65915.5 or their successors. Density bonus calculations and benefits shall be determined consistent with State Density Bonus Law.

(Ord. 2026-1132, 8/18/2026)

The following method shall be used in determining the total number of units to be granted, including base density and bonus density as well as the resulting number of affordable units needed for a given density bonus project.

A. Calculation.

1. Compliance with State Law. All density bonuses are designed to be in conformance with California Government Code Section 65915. If local regulations interact with state law in a way that reduces the number of income-restricted housing units required by state law or undermines the goals of the State Density Bonus Law, the State Density Bonus Law shall take precedence over the local regulations.

2. Fractional Units. The calculation of a density bonus in compliance with this section that results in fractional units, including base density and bonus density, shall be rounded up to the next whole number.

3. Increased Density Limit. A housing development shall not exceed the cumulative total of base units allowed under the applicable zoning plus any bonus density units permitted. No incentive, concession, or development standard waiver shall be used as a means to exceed this combined maximum density.

4. Election to Accept Lesser Density Bonus. An applicant for a density bonus may elect to provide a lesser percentage of density bonus increase than what is allowed, or no density increase, but shall remain eligible for concessions or incentives, waivers or reduction of development standards, and eligible parking requirements provided the project meets the eligibility requirements of this section and State Density Bonus law.

5. Exclusion of Density Bonus Units. The density bonus units shall not be included in determining the number of affordable units required to qualify a housing development project for a density bonus.

6. Minimum Density Requirements. In order to implement California Government Code Section 65915(r) no concession, incentive, waiver or reduction of a development standard shall be used to avoid, reduce, or otherwise circumvent the minimum required density in any zone.

7. Multiple Eligibility Categories. If a residential development project qualifies for a density bonus under more than one income category, such as income-based eligibility, senior citizen housing, or housing designated for transitional foster youth, disabled veterans, homeless persons, or lower income students, the applicant must identify which categories they are using to qualify for a density bonus. Density bonuses from more than one category can be combined up to the maximum allowed under California Government Code Section 65915.

(Ord. 2026-1132, 8/18/2026)

An application for a density bonus, concession or incentive, waiver or reduction of a development standard, or revised parking standard pursuant to this chapter shall be submitted on a form prescribed by the City and shall include at least the following information:

A. A legal description, address, and assessor's parcel number(s) of the project site, and present and proposed (as applicable) zoning and General Plan Land Use designation.

B. Summary project data table showing:

1. Base density permitted by the zoning and general plan excluding any density bonus units;

2. When subject to Section 18.17.050 (Affordability requirement), identify the required affordability percentage, number of required units, and the targeted household income;

3. The proposed number and percentage of affordable units by income level;

4. Proposed density bonus percentage;

5. Number of density bonus units proposed;

6. The total number of dwelling units proposed on the site and offsite, as applicable; and

7. The project's conformance to all objective development standards, as well as the City's Multi-Family Residential Design Guidelines.

C. A detailed vicinity map showing the project location and location of any off-site units, and such details as the location of the nearest commercial retail, transit stop, potential employment locations, park or recreation facilities or other social or community service facilities.

D. Existing site plan drawn to scale, showing existing project site, showing any structures to remain and/or be demolished.

E. Affordable Housing Plan for Density Bonus purposes, which shall include, but not limited to, the following:

1. The structure layout (attached, semi-attached, or detached), proposed tenure (for-sale or rental), and size of the proposed market-rate units, commercial space, and/or affordable housing units (density bonus).

2. A plan indicating the location of the affordable units.

3. The income levels to which each affordable unit will be made affordable.

4. Proposed site plan drawn to scale, showing the number and location of all proposed units, and identifying the number and location of proposed affordable units and density bonus units.

5. Proposed floor plans of all proposed structures and designating affordable units and density bonus units, as appropriate.

6. The phasing of the construction of the affordable housing units (density bonus) in relation to the nonrestricted units in the housing development.

F. Replacement Housing Documentation.

1. A description of all dwelling units that existed on the site at any time during the five-year period preceding the date of submittal of the application. This documentation shall include records of rental occupancy, income levels of tenants, and any recorded covenants, ordinances, or laws restricting rents to levels affordable to low- or very low-income households.

a. Affordable Rental Units Subject to Covenants or Restrictions. If the site currently contains, or previously contained within the preceding five years, rental units subject to a recorded covenant, ordinance, or law restricting rents to levels affordable to persons and families of low- or very low-income, replacement housing is required.

b. Occupied Units by Low- or Very Low-Income Households. If the site currently contains units occupied by low- or very low-income households or contains units that were rented to such households within the five years preceding the application, replacement housing is required.

2. If any of these conditions exist on the property, the application must identify how such units will be replaced in the density bonus project.

G. A letter signed by the present owner stating what specific density bonus, concessions or incentives, and waivers or reductions of development standards are being requested from the City, and if reduced parking pursuant to California. Government Code Section 65915 et seq., is being requested.

H. Requested Concessions or Incentives. Applicants may request concessions and incentives as defined in California Government Code Section 65915(d). The number of concessions or incentives that may be requested shall correspond with the number the applicant is entitled to pursuant to State Density Bonus Law.

For each requested concession or incentive, the application shall include the following minimum documentation:

1. A clear description of the standard proposed to be modified, and the specific relief requested.

2. Documentation sufficient for the City to determine that the request will result in identifiable and actual cost reductions, as follows:

a. For all concessions or incentives other than mixed-use zoning:

i. Reasonable documentation demonstrating that the requested relief will reduce the development cost of providing the affordable housing units.

b. If the requested concession or incentive involves mixed-use zoning, the applicant shall demonstrate that:

i. The inclusion of nonresidential land use will reduce overall housing development costs;

ii. The proposed nonresidential land uses are compatible with the residential component and surrounding development; and

iii. The request assists in providing affordable housing costs or rents, as defined under State Density Bonus law.

I. Requested Waivers or Reductions of development standards.

1. Waivers or reductions of development standards are those defined by the State Density Bonus Law.

2. The applicant shall identify each requested waiver or reduction of a development standard, including a description of the specific development standard proposed to be modified.

3. For each requested waiver or reduction of a development standard, the applicant shall provide sufficient information for the City to determine that the development standard would physically preclude the construction of the residential project at the proposed density and with the requested concessions and incentives.

J. Financial Incentives. The provisions of this chapter shall not be interpreted to require or limit the City from providing direct financial incentives, including the provision of publicly owned land or the waiver of fees or dedication requirements.

K. Requested Parking Reductions. Identify whether a reduction in the required on-site vehicular parking ratio is requested as specified in California Government Code Section 65915(p). An applicant may request this parking reduction in addition to the concessions or incentives, and waivers or reductions of development standards. The application shall include a table showing parking required by the zoning regulations, parking proposed under the State Density Bonus Law, and reasonable documentation that the project is eligible for the requested parking reduction.

L. Land Donation. If a density bonus or concession is requested for a land donation, the application shall show the location of the land to be donated, provide proof of site control, and provide evidence that all of the requirements and each of the findings included in California Government Code Section 65915(g) can be made.

M. Child Daycare Facility. If a density bonus or concession is requested for a childcare facility, the application shall show the location and square footage of the childcare facility and provide evidence that all of the requirements and each of the findings included in California Government Code Section 65915(h) can be made.

N. Condominium Conversion. Density bonus or concession/incentive for a condominium conversion. The application shall include reasonable documentation that all of the requirements included in California Government Code Section 65915.5 can be met.

(Ord. 2026-1132, 8/18/2026)

A. Filing and Processing Requirements. A request for a density bonus, concession or incentive, waiver or reduction of a development standard, or parking reduction pursuant to State Density Bonus Law shall be submitted concurrently with the first application for a discretionary or ministerial permit required for the housing development, whichever is filed first. The request shall be made on a form provided by the Community Development Director, or their designee, and processed in compliance with this chapter and Chapter 18.36 (Administration).

No additional discretionary approval shall be required solely to grant a density bonus or related benefit under state law. The City shall notify the applicant whether the application is complete pursuant to California Government Code Section 65943. If the underlying permit is subject to appeal, the appeal shall be processed in accordance with Yorba Linda Municipal Code Chapter 18.36, Article 9, and shall include any associated requests made under State Density Bonus Law.

B. General Plan and Zoning Consistency. The granting of a density bonus, concession or incentive, waiver or reduction of a development standard, or parking reduction pursuant to this chapter shall not, in and of itself, be interpreted to require a General Plan amendment, Zoning Map amendment, development code amendment, zone change, other discretionary approval, or the waiver of any City ordinance or provision thereof that is unrelated to development standards.

C. Review and Decision. To ensure that an application for a housing development conforms with the provisions of State Density Bonus Law, the decision-making body shall determine whether the application conforms to the following requirements of State Density Bonus Law, as applicable:

1. Replacement Housing. The housing development provides the housing required by State Density Bonus Law to be eligible for a density bonus and any concessions or incentives, waivers or reductions of development standards, or parking reduction requested, including housing required to replace units rented or formerly rented to very low- and low-income households as required by California Government Code Section 65915(c)(3).

2. Stacked Density. If applicable, the housing development provides the housing required by State Density Bonus law to be eligible for an additional density bonus under California Government Code Section 65915(v)(1).

3. Concession or Incentive Documentation. If a concession or incentive is requested, reasonable documentation has been presented showing that any requested concession or incentive will result in identifiable and actual cost reductions to provide for affordable housing or costs or rents; except that, if a mixed-use development is requested, the application must instead meet all of the requirements of California Government Code Section 65915(k)(2).

4. If a waiver or reduction of a development standard is requested, the applicant shall demonstrate that the development standard would have the effect of physically precluding the construction of the development eligible for a density bonus at the allowed density, or with the concessions or incentives permitted by California Government Code Section 65915.

5. Parking Reductions. The housing development is eligible for any requested parking reductions under California Government Code Section 65915(p) or other statute.

6. Land Donation Bonus. If the density bonus is based all or in part on donation of land, the requirements of California Government Code Section 65915(g) have been met.

7. Child Care Facilities and Condo Conversions. If the density bonus, concession or incentive is based all or in part on the inclusion of a child care facility or condominium conversion, the requirements included in California Government Code Section 65915(h) or 65915.5, as appropriate, have been met.

D. Concession and Incentive Findings. The decision-making body shall grant a concession or incentive requested by the applicant unless it makes a written finding, based upon substantial evidence, of any of the following:

1. The concession or incentive does not result in an identifiable and actual cost reductions to provide for affordable housing costs or for rents for the targeted units to be set;

2. The concession or incentive would have a specific adverse impact upon public health and safety, 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; or

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

E. Waiver or Reduction of Development Standards Findings. The decision-making body shall grant the waiver or reduction of development standards requested by the applicant unless it makes a written finding, based upon substantial evidence, of any of the following:

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

2. The proposed waiver or reduction of development standards would have an adverse impact on any real property listed in the California Register of Historic Resources; or

3. The proposed waiver or reduction of development standards would have a specific, adverse impact upon the public health or safety, and there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact without rendering the housing development unaffordable to low- and moderate-income households; or

4. The development standard proposed to be waived or reduced would not physically preclude the construction of the development at the densities or with the concessions or incentives permitted by this chapter.

F. Child Care Center Findings. The decision-making body shall approve a concession or incentive for a child care facility included in a housing development in accordance with California Government Code Section 65915(h), unless it finds, based on substantial evidence, that the community has adequate child care facilities.

G. Minor Modifications. A request for minor modification of an approved density bonus housing plan may be granted by the Community Development Director, or their designee, if the modification substantially complies with the original plan and all conditions of approval. Modifications to the density bonus housing plan that do not qualify as minor shall be processed in the same manner as the original plan. Permissible minor modifications may include, but are not limited to, revisions to internal unit layout, minor facade refinements, or limited adjustments to the building footprint, provided such changes do not increase the overall density or reduce the number of affordable housing units (density bonus). The Community Development Director, or their designee, shall document the rationale in writing when approving a minor modification.

(Ord. 2026-1132, 8/18/2026)

The applicant approved for a density bonus, concession or incentive, or waiver or reduction of a development standard under this chapter shall enter into a binding Affordable Housing Agreement, as described below, with the City of Yorba Linda, which sets forth the conditions and guidelines to construct, operate, and maintain the affordable units in accordance with state Density Bonus law and this chapter. The Affordable Housing Agreement also establishes specific compliance standards and remedies available to the City of Yorba Linda upon failure by the applicant to comply with State Density Bonus Law, this chapter, or the density bonus agreement. The Affordable Housing Agreement shall be executed in a recordable form prior to the issuance of any building permit for any portion of the housing development subject to these requirements, ensuring that no permit is issued until the Affordable Housing Agreement is recorded. The Affordable Housing Agreement shall be recorded and binding upon all future owners and successors in interest.

A. Contents. The Affordable Housing Agreement shall include the following, without limitation:

1. All information provided in the density bonus application pursuant to Section 18.19.050 of this chapter.

2. Description of Density Bonus. A description of the density bonus, concessions or incentives, waivers or reductions of development standards, and/or reduced parking requirements, if any, being provided by the City.

3. Identification of Affordable Units. The Affordable Housing Agreements shall identify the total number of affordable units and the total number of units approved for the housing development. Affordable units shall be identified by address, unit, and legal description, type (floor area, number of bedrooms/baths etc.), and designated household income category.

4. Term of Affordability. Unless specified elsewhere in this chapter or in federal, state, or local regulations, affordable units shall be subject to a minimum affordability period of 55 years for rental units and 45 years for for-sale units, with the restriction period commencing on the date a certificate of occupancy is issued.

5. Maximum Allowable Rent or Sales Price.

a. Rental Housing Developments. In the case of rental housing developments, the Affordable Housing Agreement shall provide for the following conditions governing the use of the affordable housing units (density bonus) during the use restriction period:

i. The rules and procedures for qualifying tenants, establishing affordable rent, filling vacancies, and maintaining the affordable units for qualified tenants.

ii. Provisions requiring owners to verify tenant incomes and maintain books and records to demonstrate compliance with this chapter.

iii. Provisions requiring owners to submit an annual report to the City, which includes the name, address, and income of each person occupying each affordable unit, and which identifies the unit size and monthly rent or cost of each affordable unit.

iv. Determination of Rent. A maximum rent schedule shall be submitted to the City prior to the issuance of an occupancy permit for the affordable units and updated annually on the anniversary date of occupancy in accordance with the most recent California Department of Housing and Community Development (HCD) income limits, or other applicable regional income limits approved by the City.

v. Deposit Amount. Total move-in costs for eligible tenants occupying affordable units shall be limited to first month's rent plus a security/cleaning deposit not to exceed one month's rent.

vi. Upward Mobility Allowance. When a tenant occupying an affordable unit no longer qualifies under the income requirements, verified through the monitoring program required as part of the Affordable Housing Agreement, that tenant may then be charged market rate rent. If this occurs, any currently vacant unit of similar type to the affordable unit in question, or, if no vacancies exist at the time of the conversion, the next market rate unit that becomes available, shall then immediately be designated as an affordable unit, and the owner shall immediately attempt to secure tenants in accordance with this chapter. The owner is required to maintain at all times during the use restriction the minimum number of affordable units identified in the Affordable Housing Agreement.

vii. Subletting of Affordable Units. No subletting or short-term occupancy of designated affordable units shall be allowed.

b. Ownership Projects. In the case of for-sale housing developments, as a condition of approval of the housing development, the City Affordable Housing Agreement shall include the following additional conditions governing the initial sale and use of affordable units during the applicable use period:

i. Equity Sharing. The development is subject to an equity sharing agreement that complies with California Government Code Section 65915(c)(2), unless such requirement conflicts with another public funding source or law, in which case the agreement may defer to the recapture provisions of that funding source.

ii. Initial Sale and Occupancy. Affordable units shall, upon initial sale, be sold to and occupied by eligible very low-, low-, or moderate-income households at an affordable sales price and housing cost, such occupancy shall remain with the qualified purchase for the duration of the affordability term, or to qualifying residents in the case of a senior citizen housing development.

iii. Resale Restrictions. The initial purchaser of each affordable housing unit shall execute a resale restriction agreement, approved by the City, recorded against the property, and binding for the entire affordability term, which shall include any provisions necessary to ensure continued compliance with State Density Bonus Law.

iv. Rental of For-Sale Units. Leasing, subleasing, or other non-owner occupancy of affordable ownership units shall be prohibited, unless expressly authorized by the City under limited circumstances.

v. Right of First Refusal. Upon expiration of the affordability term on an affordable unit, the City and/or a qualified nonprofit housing organization identified by the City shall have a right of first refusal to purchase the unit, exercisable within 60 days of the affordable unit being advertised on the market.

6. Affordable Housing Agreements for land dedication, child care facilities, and condominium conversions shall ensure the continued compliance with all conditions included in State Density Bonus Law.

7. Affordable Housing Agreements for senior citizen housing developments shall provide that units in the housing development shall be occupied by senior citizens or other persons eligible to reside in such a project as established by the State Density Bonus Law.

8. Monitoring of Compliance with Affordable Housing Agreement. A monitoring program managed by the owner or applicant shall be required, specifying the party responsible for certifying tenant incomes and sales/rental price, maintaining the required number of affordable units for the project, and marketing and filling unit vacancies. The owner or applicant shall be required to comply with the City's monitoring and compliance activities.

9. Remedies. Description of remedies for breach of the Affordable Housing Agreement by either party (the City may identify tenants or qualified purchasers as third-party beneficiaries under the Affordable Housing Agreement).

10. Schedule. A schedule for completion and occupancy of the affordable units.

11. Other Provisions. The Affordable Housing Agreement shall include any other provisions determined necessary by the Director or City Attorney to ensure implementation and compliance with the State Density Bonus Law and this chapter.

B. Fees. The City Council may establish by resolution fees associated with the preparation and monitoring of the Affordable Housing Agreement.

(Ord. 2026-1132, 8/18/2026)

Affordable units shall be designed and distributed within the housing development as follows:

A. Number of Bedrooms. Affordable units shall reflect the range of numbers of bedrooms provided in the housing development project as a whole. For purposes of this section, the range of number of bedrooms shall mean the percentage of units that contain a set number of bedrooms (e.g., if 20% of the total units in a project are two-bedroom, then 20% of the affordable units shall be two-bedroom). The Director shall have the authority to determine a project's compliance with this section.

B. Comparable Quality and Facilities. Affordable units shall be constructed to the same quality and exterior design as the market-rate housing units. Additionally, the affordable units shall include the same laundry, recreation, and other facilities that are made available to the market-rate housing units;

C. Access. In mixed-income multi-unit structures, the occupants of the affordable housing units shall have the same access to common entrances and any common areas including parking areas in that development as the occupants of the market-rate housing units.

D. Size and Finish. Subject to the requirements of this section and the Municipal Code, affordable units may be smaller and have different interior finishes, appliances and features than the market-rate units.

E. Location. Affordable units shall be distributed throughout the housing development.

(Ord. 2026-1132, 8/18/2026)