HomeMy WebLinkAboutOrd 1304-2001'" ORDINANCE NO. 1304-2001
AN- ORDINANCE ADDING CHAPTER 20.130, DENSITY BONUS,
TO THE SOUTH SAN FRANCISCO MUNICIPAL CODE
WHEREAS, The City of South San Francisco adopted a Housing Element as a
component of its General Plan in December 1992. The certified Housing Element provides for
the developrr_ent of affordable, well designed and properly located residential housing for all
economic sec :ors of the community in a manner which fosters and maintains the support of the
entire community; and,
WHEREAS, an Inclusionary Housing Ordinance was introduced on November 14, 2001,
and approved by the Council; and,
WHEREAS, projects may be developed pursuant to the requirements of the Inclusionary
Housing Ordinance that will satisfy the requirements of state law for a density bonus; and,
WHE_-~EAS, pursuant to state law, the City is required to adopt an ordinance the provides
a density bonas to projects meeting the criteria established in Government Code sections 65915
through 65917; and,
WHE?,EAS, based on the reports of staff and the testimony at the public hearings,
including the Joint Study Session with the Planning Commission on August 30, 2001, the City
Council direc :ed staff to finalize the Draft Inclusionary Ordinance and Density Bonus Ordinance.
NOW THEREFORE, The City Council of the City of South San Francisco based on the
entire record which includes, but is not limited to the Study Sessions of August 19 and 30, 2001,
the duly noticed public hearing of the Planning Commission on September 20, 2001, and staff
reports and testimony received at same; the Inclusionary Housing and Density Bonus Ordinances
and findings made for same; and the staff reports and testimony received at the duly noticed
public heating of the City Council on September 26, 2001 and November 14, 2001; does hereby
ordain as follows:
SECTION 1: ADDITION OF CHAPTER 20.130
Chapter 20.130, entitled "Residential Density Bonus" is hereby added to the South San Francisco
Municipal Code to provide as set forth in Exhibit A attached hereto and incorporated herein by
reference.
SECTION 2: PURPOSE
To implement the requirements of Government Code section
projects that are entitled, by state law, to receive a density bonus.
65915 through 65917 for all
SECTION 3: FINDINGS
A. South San Francisco General Plan and Housing Element
Appropriateness and Effectiveness of the Housing Element: In adopting the Housing Element,
the City of South San Francisco found that its housing goals, objectives, and policies are
appropriate in contributing to the attainment of the State's housing goal in that:
The City fosters cooperation of the public and private sectors in expanding housing
opportunities and accommodating housing needs through rezoning efforts, density
bon:~ses, mixed land uses, housing revenue bonds, and rehabilitation programs; and
The City supports the provision of housing affordable to low and moderate-income
households through new single-family and multiple family housing construction, use of
factory-built housing and mobile homes, creation of second units and sharing of
hon-_es, and construction of senior housing; and
°
The City facilitates the adequate provision of housing for all economic segments of the
corr_munity through site availability, new housing construction, housing conservation,
and rehabilitation and by providing density bonuses and incentives to off-set the costs
of providing affordable housing.
Housing Element Goals and Policies:
A°
Goal 1 Encourage a supply of housing units sufficient to assure each resident an
attractive, healthful, safe environment within a wide range of designs, types, sizes,
and prices.
Bo
Goal 2 Continue to support the provision of housing by both the private and
public sector for all income groups in the community.
Policy 2A Eliminate constraints to affordable housing.
Policy 2B Stimulate the construction of lower cost units by providing incentives
and encouraging mixed use projects, second units, density bonuses, and
manufactured housing.
Policy 2D Involve the City directly in retaining and increasing the supply of
affordable housing.
Policy 2E. Continue to cooperate with other governmental agencies and take an
active interest in seeking solutions to area-wide housing problems.
2
Analysis: The above referenced policies support implementation of the Residential Density
Bonus Ordinance as a means to achieve the goal of eliminating constraints to the provision of
affordable housing within the City. The Ordinance requires the City provide a density bonus of
at least 25% to projects that reserve twenty-percent of the dwelling units to persons or families of
low income ~.s well as requiring the City to provide one additional incentive. The Ordinance
furthers Goal 2 of the Housing Element by providing a means by which the City can contribute
to affordable housing developments by offering incentives that will off-set the costs associated
with said developments. With the adoption of this Ordinance, the City will be able to provide
various incentives and off-sets to those projects that provide a minimum of twenty percent (20%)
of the total units to families of low-income. Based on the foregoing, the Residential Density
Bonus Ordintnce is consistent with and further the goals established in the Housing Element of
the City of South San Francisco's General Plan.
B. Comp liance with State Law
Government Code section 65913 articulates the state policy on affordable housing. Specifically,
the state Legislature determined that there is a severe shortage of affordable housing, especially
for persons aad families of low and moderate income, and that there is an immediate need to
encourage the development of new housing, not only through the provision of financial
assistance, but also through changes in law designed to assure that local governments make a
diligent effort through the administration of land use and development controls and the provision
of regulatory concessions and incentives to significantly reduce housing development costs and
thereby facilitate the development of affordable housing.
Analysis: By adopting the Residential Density Bonus Ordinance, which implements the
requirements of state law for projects that include at least 20% of the proposed units as
affordable to persons of low-income, the City acts proactively to offer incentives to project
applicants th~_t seek to go beyond the requirements of the Inclusionary Ordinance and further
reduces the constraints to building affordable projects. The use of incentives and off-sets
available in the Ordinance, provides a mechanism to allow the private sector to develop
affordable un_'ts and maintain project feasibility.
C. California Environmental Quality Act
Pursuant to the California Environmental Quality Act (CEQA) Gui&lines, the City Council
declares that :his ordinance is exempt from CEQA based on the following findings:
This ordinance is not a "project" within the meaning of Section 15378 of the State CEQA
Guidelines, because it has no potential for resulting in physical change in the
environment, directly or ultimately. This ordinance does not, in itself, allow the
construction of any building or structure. This ordinance, therefore, has no potential for
resulSng in physical change in the environment, directly or ultimately.
This ordinance is covered by the general rule that CEQA applies only to projects which
have :he potential for causing a significant effect on the environment. For the reasons
set forth above, it can be seen with certainty that there is no possibility that this
ordinance will have a significant effect on the environment, and therefore, the ordinance
is not subject to CEQA.
SECTION 4: SEVERABILITY
In the event any section or portion of this ordinance shall be determined invalid or
unconstitutior.al, such section or portion shall be deemed severable and all other sections or
portions hereof shall remain in full force and effect.
SECTION 5: PUBLICATION AND EFFECTIVE DATE
Pursuant to the provisions of Government Code Section 36933, a Summary of this Ordinance
shall be prepared by the City Attorney. At least five (5) days prior to the Council meeting at
which this Ordinance is scheduled to be adopted, the City Clerk shall (1) publish the Summary,
and (2) post in the City Clerk's Office a certified copy of this Ordinance. Within fifteen (15)
days after the adoption of this Ordinance, the City Clerk shall (1) publish the summary, and (2)
post in the City Clerk's Office a certified copy of the full text of this Ordinance along with the
names of those City Council members voting for and against this Ordinance or otherwise voting.
This ordinance shall become effective thirty days from and after its adoption.
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Introdaced at a regular meeting of the City Council of the City of South San Francisco,
held the 14th day of November 2001, by the following vote:
Adopted as an Ordinance of the City of South San Francisco at a regular meeting
of the City Council held the 12th day of December 2001:
AYES: Councilmembers Joseph A. Femekes, and Karyl Matsumoto
Mayor Pro Tem Pedro Gonzalez and Mayor Eugene R. Mullin
NOES:
ABSTAIN:
ABSENT:
None.
Councilmember Raymond L. Green
None.
ATTEST' Iai.' ~ ~t City Clerk
As Mayor of the City of South San Francisco, I do hereby approve the foregoing
Ordinance this 12th day of December 2001. ~-- _
EXHIBIT A
Chapter 20.130: Residential Density
Bonus
Sections:
20.130.010
20.130.020
20.130.030
20.130.040
20.130.050
20.130.060
20.130.070
20.130.080
20.130.090
P ]rpose and intent.
Definitions
Regulations for new
residential construction
Regulations for condominium
conversions
Combined density bonus
housing projects.
Combined density bonus
housing projects
Density bonus housing
standards
Expiration of affordability
tenure
Density bonus or in-lieu
ir.centive application and
review process
20.130.100 Irclusion of density bonus
housing agreement as a
condition of development
20.130.110 Density bonus resale
agreements
20.130.120 Eigibility requirements
20.130.1301V~..anagement and monitoring
20.130.140 Administrative fee for target
dwelling units
20.130.150 Severability of provisions
20.130.010 Parpose and intent.
The public good is served when there exists
in a city, hoasing which is appropriate for
the needs of and affordable to all members
of the public who reside within that city.
Among other needs, there is in South San
Francisco a need for housing affordable to
lower-income households and senior
citizens. Therefore, it is in the public interest
for the city to promote the construction of
such additional housing through the exercise
of its powers and the utilization of its
resources.
(a) It is the purpose of this chapter to
provide incentives to developers for the
production of housing affordable to lower-
income households, moderate-income
households and qualified residents.
(b) It is the purpose of this chapter to
implement the goals, objectives, and policies
of the housing element of the city's general
plan, as amended.
(c) It is the purpose of this chapter to
implement Sections 65915 through 65917 of
the California Government Code.
(d) Nothing in this chapter is intended to
create a mandatory duty on behalf of the city
or its employees under the Government Tort
Claims Act and no cause of action against
the city or its employees is created by this
chapter that would not arise independently
of the provisions of this chapter. (Ord.
-01, 2001)
20.130.020 Definitions.
Whenever the following terms are used in
this chapter, they shall have the meaning
established by this section:
(a) "Additional incentive(s)" means any
incentive(s) that is offered in addition to the
twenty-five percent (25%) density bonus.
(b) "Affordable housing (density
bonus)" means housing for which the
allowable housing expenses paid by a
qualifying household shall not exceed a
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specified fraction of the gross monthly
income, adjusted for household size, as
defined in Chapter 10.125.
(c) "Combined density bonus housing
project" means separate residential
development sites which are linked by a
contractual relationship such that some or all
of the target dwelling units and/or density
bonus dwelling units which are associated
with one development site are produced and
operated at an alternative development site
or sites.
(d) "Conversion" means the change of
status of a dwelling unit from a purchased
unit to rental mit or vice versa.
(e) "Density bonus (condominium
conversions)" means a minimum increase of
at least twenty-five (25%) percent over the
number of avartments within the existing
structure or structures proposed for
conversion.
(f) "Density bonus (new residential
construction)" means a minimum density
increase of at least twenty-five percent
(25%) over maximum permitted density for
the zoning designation at the time of
application o: as otherwise permitted in an
applicable Specific Plan or Master Plan.
(g) "Density bonus dwelling units"
means those residential units granted
pursuant to -.he provisions of this chapter
which are above the maximum allowable
residential yield of the project site.
(h) "Density bonus housing agreement"
means a legally binding agreement between
a developer and the city to ensure that the
density bonus requirements of this chapter
are satisfied. The agreement establishes the
number of target dwelling units and density
bonus dwelling units, the unit sizes,
location, affordability tenure, terms and
conditions of affordability and unit
production schedule.
(i) "Housing development" means a
new residential development or conversion
of existing residential building(s) of five or
more residential dwelling units.
(j) "In-lieU incentives" means incentives
offered by the city, which are of equivalent
financial value based upon the land cost per
dwelling unit(s), that are offered in-lieu of
the twenty-five percent (25%) of density
bonus and additional incentive.
(k) "Incentives" means such regulatory
concessions as stipulated in State
Government .Code Section 65915(h), to
include, but not be limited to the reduction
of site development standards or zone code
requirements, approval of mixed use zoning
in conjunction with the housing project, or
any other regulatory incentive which would
result in identifiable cost reductions to
enable the provision of housing for lower-
income households and qualifying residents.
(1) "Income" means any monetary
benefits that qualify as income in
accordance with the criteria and procedures
used by the City of South San Francisco
Economic and community Development
department.
(m) "Low-income household" means
those households whose gross income is
more than fifty percent (50%) but does not
exceed eighty percent (80%) of the median
income for San Mateo County as determined
annually by the U.S. Department of Housing
and Urban Development.
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(n) "Lower-income household" means
low-income households, whose gross
income does not exceed eighty percent
(80%) of the area median income.
(o "Market-rate unit" means a dwelling
unit where the rental rate or sales price is not
restricted either by this chapter or by
requirements imposed through other local,
state, or federal affordable housing
programs.
(p) "Maximum allowable residential
yield" means the maximum number of
residential units permitted on the project
site, which number of units is calculated by
multiplying the net developable acreage of
the project site times the growth
management control point(s) for the project
site's applicable residential general plan
designation(s).
(q) "Moderate-income household"
means those households whose gross
income is more than eighty percent (80%)
but does not exceed one hundred twenty
percent (120%) of the median income for
San Mateo County as determined annually
by the U.S. Department of Housing and
Urban Development.
(r) "Partial density bonus" means a
density bonus less than twenty-five percent
(25%).
(s) "Qual'fying resident" means a
resident as cefined in Section 51.3 of the
California Civil Code.
(t) "Target dwelling unit" means a
dwelling unit that will be offered for rent or
sale exclusively to and which shall be
affordable to the designated income group or
qualified resident, as required by this
chapter.
(u) "Target income level" means the
income standards for very low, low and
moderate-income levels within San Mateo
County as determined annually by the U.S.
Department of Housing and Urban
Development, and adjusted for family size.
(Ord. -01,2001)
20.130.030 Regulations
residential construction.
for new
(a) The city shall grant either a density
bonus and at least one additional incentive,
as set forth in Section 20.130.060(c), or in-
lieu incentives of equivalent financial value,
as set forth in Section 20.130.060(c) to an
applicant or developer of a housing
development of at least five units, who
agrees to construct the following:
(1) A minimum of twenty percent
(20%) of the total units of the housing
development as restricted and affordable to
low-income households; or
(2) A minimum of ten percent (10%)
of the total units of the housing development
as restricted and affordable to very low
income households.
(3) A minimum of fifty percent
(50%) of the total units of the housing
development as restricted to qualified
residents.
(b) In determining the number of density
bonus dwelling units to be granted pursuant
to the standards of this section, the
maximum allowable residential yield for the
site, shall be multiplied by 0.25. Any
resulting decimal fraction shall be rounded
to the next larger integer.
8
(c) In determining the number of target
dwelling units to be reserved pursuant to the
standards of this section, the maximum
allowable residential yield shall be
multiplied by either 0.10, 0.20 or 0.50, for
very low-income households, low-income
households or qualified residents,
respectively. The density bonus shall not be
included when determining the number of
housing units which is equal to ten percent
(10%), twenty percent (20%) or fifty percent
(50%) of the total units of the housing
development. Any resulting decimal fraction
shall be rounced to the next larger integer.
(d) In cases where a density increase of
less than twenty-five percent (25%) is
requested, including cases where a density
increase is sought to satisfy inclusionary
housing requirements under Chapter 20.125,
no reduction will be allowed in the number
of target dwelling units required.
(e) In cases where a density increase of
more than twenty-five percent (25%) is
requested, the requested density increase is
an additional density bonus and shall be
considered an additional incentive, in
accordance to Section 20.130.060(c) of this
chapter. The final decision making authority
of the city may at its discretion grant an
additional density bonus if a written finding
is made by the final decision making
authority of the city that the additional
density bonus is required in order for
allowable housing expenses to be set as
affordable. Tl~.e city in granting an additional
density bonus may require some portion of
the additional density bonus to be designated
as target dwelling units.
(f) In cases where the developer agrees
to construct '>oth twenty percent (20%) of
the total units for low-income households
and ten percent (10%) of the total units for
very low-income households, the developer
is entitled to only one density bonus and at
least one additional incentive.
(g) A density bonus housing agreement
shall be made a condition of the
discretionary permits (i.e., tentative maps,
parcel maps, planned unit developments,
condominium permits, site development
plans and redevelopment permits) for all
housing developments that request a density
bonus and additional incentives or in-lieu
incentives. The relevant terms and
conditions of the density bonus housing
agreement shall be filed and recorded as a
deed restriction on those individual lots or
units of a project development which are
designated for the location of target dwelling
units. The density bonus housing agreement
shall be consistent with Section 20.130.100
of this chapter. (Ord. -01, 2001)
20.130.040 Regulations for condominium
conversions.
(a) The city shall grant either a density
bonus or in-lieu incentives of equivalent
financial value, as set forth in Section
20.130.060(c), to an applicant or developer
proposing to convert apartments to
condominiums, and who agrees to provide
the following:
(1) A minimum of thirty-three (33%)
percent of the total units of the housing
development as restricted and affordable to
low-income or moderate-income
households; or
(2) A minimum of fifteen percent
(15%) of the total units of the housing
development as restricted and affordable to
lower-income households.
9
(b) An applicant/developer proposing to
convert apartx~ents to condominiums shall
be ineligible for a density bonus or in-lieu
incentives t~nder this section if the
apartments proposed for conversion
constitute a housing development for which
a density bonus or in-lieu incentives were
previously provided under this chapter.
(c) In determining the number of density
bonus dwelling units to be granted pursuant
to the standards of this section, the number
of existing apartment units within the
structure or structures proposed for
conversion sl~all be multiplied by 0.25. Any
resulting dec"mal fraction shall be rounded
to the next larger integer.
(d) In determining the number of target
dwelling units to be reserved pursuant to the
standards of this section, the number of
existing apartment units within the structure
or structures proposed for conversion shall
be multiplied by either 0.33 or 0.15, for low
or moderate-income households or lower-
income households, respectively. The
density bonus shall not be included when
determining :he number of housing units
which is equal to thirty-three percent (33%)
or fifteen percent (15%) of the total units of
the housing development. Any resulting
decimal fraction shall be rounded to the next
larger integer.
(e) In cases where a density increase of
less than twenty-five percent (25%) is
requested, no reduction will be allowed in
the number o_-' target dwelling units required.
(f) A der_sity bonus housing agreement
shall be made a condition of the
discretionary permits (tentative maps, parcel
maps, planr_ed unit developments and
condominium permits) for all condominium
conversion proposals that request a density
bonus or in-lieu incentives. The relevant
terms and conditions of the density bonus
housing agreement shall be filed and
recorded as a deed restriction on those
individual lots or units of a project
development which are designated for the
location of target dwelling units. The density
bonus housing agreement shall be consistent
with Section 20.130.100 of this chapter.
(Ord. -01, 2001)
20.130.050 Combined density bonus
housing projects.
(a) Circumstances may arise from time
to time in which the public interest would be
served by allowing some or all of the density
bonus and/or target dwelling units
associated with one residential project site to
be produced and operated at an alternative
site or sites. Where the parties in interest to
the sites and the city form an agreement to
such an effect, the resulting linked project
sites shall be considered to be a single
combined density bonus housing project.
(b) It is the exclusive prerogative of the
final decision making authority of the city to
determine whether or not it is in the public
interest to authorize the residential sites to
form a combined density bonus housing
project.
(c) All agreements between parties to
form a combined density bonus housing
project shall be made a part of the density
bonus housing agreement (Section
20.130.100 of this Code) required for the
sites. (Ord. ~-01, 2001)
20.130.060 Combined density bonus
housing projects.
(a) Upon application by a developer,
pursuant to Section 20.130.030, the final
10
decision maldng authority of the city shall
grant either a density bonus and at least one
additional incentive or in-lieu incentives of
equivalent f'_'nancial value to qualified
lower-income or qualified resident housing
developments.
(b) Upon application by a developer,
pursuant to Section 20.130.040, the final
decision mak'.ng authority of the city shall
grant either a density bonus or in-lieu
incentives of equivalent financial value to
qualified lower-income and/or moderate-
income housing developments.
(c) Additional incentives or in-lieu
incentives, as defined in Sections
20.130.020(11 and (12) respectively, may
include, but are not limited to, the following:
(1) A reduction in site development
standards or a modification of zoning code
requirements or architectural design
requirements which exceed the minimum
building standards approved by the State
Building Star_dards Commission as provided
in Part 2.5 (commencing with Section
18901) of Division 13 of the Health and
Safety Code, including, but not limited to, a
reduction in setback and square footage
requirements and in the ratio of vehicle
parking spaces that would otherwise be
required;
(2) Approval of mixed use zoning in
conjunction with the housing development
and mixed use zoning will reduce the cost of
developing the housing; or
(3) Other regulatory incentives or
concessions proposed by the developer or
the city which result in identifiable cost
reductions;
(4) Partial or additional density
bonus;
(5) Subsidized or reduced planning,
plan check or permit fees; and
(6) Direct financial aid including, but
not limited to redevelopment set-aside
funding, community development block
grant funding, or subsidizing infrastructure,
land cost or construction costs or other
incentives of equivalent financial value
based upon the land costs per dwelling unit.
(d) The value of each incentive will vary
from project to project, therefore, additional
incentives or in-lieu incentives shall be
determined on a case by case basis.
(e) The city shall provide at least one
additional incentive, for qualified housing
developments as set forth in Section
20.130.030, upon a written request by the
developer unless the city makes a written
finding that the additional incentive is not
required in order for allowable housing
expenses to be set as affordable. The
applicant/owner shall be required to show
that the additional incentive is economically
necessary to make the units affordable as
required by this chapter. The process for
requesting an additional incentive and the
criteria for evaluating such request is
contained in Section 20.130.090 of this
chapter.
(f) It is the exclusive prerogative of the
city to offer in-lieu incentives of equivalent
financial value, based upon the land cost per
dwelling unit, instead of a density bonus and
at least one additional incentive.
(g) Where a density bonus would cause
a housing development targeted for lower-
income households, moderate-income
households or qualified residents to exceed
11
the upper end of the general plan density
range for the project site, then this request
shall be evaluated relative to the proposal's
compatibility with adjacent land uses and its
proximity to employment opportunities,
urban services or major roads.
(h) All qualified housing developments
as set forth in Sections 20.130.030 and
20.130.040 shall be given priority in
processing. (Ord. -01, 2001)
20.130.070 Density bonus housing
standards.
(a) Notwithstanding a developer's
request to process a residential project
pursuant to this chapter, all residential
projects are subject to and must satisfy the
requirements (i.e., number of required lower
and/or moderate-income units, tenure of
affordability, and target income groups) of
Chapter 20.125 (Inclusionary Housing) of
this code.
(b) Some of the provisions of this
chapter may satisfy the developer's
inclusionary iaousing obligations (i.e., eight
percent (8%) of the base units reserved as
affordable to lower-income households for a
minimum thi_-ty year tenure) consistent with
Chapter 20.-25 of this code, and other
provisions of this chapter will not.
(c) Required target dwelling units
should be constructed concurrent with
market rate dwelling units unless both the
final decision making authority of the city
and the developer/applicant agree within the
density bonus housing agreement to an
alternative scaedule for development.
(d) Target dwelling units shall remain
restricted and affordable to the designated
group for a period of at least thirty years, or
a longer period of time if required by the
construction or mortgage financing
assistance program, mortgage insurance
program, or rental subsidy program, under
the following circumstances:
(1) Both a density bonus and at least
one additional incentive are granted by the
city;
(2) In-lieu incentives in the form of
direct financial contributions are granted by
the city; or
(3) Any target unit which is provided
through the conversion of apartments to air
space condominiums.
(e) Target dwelling units shall remain
restricted and affordable to the designated
group for a period of at least ten years under
the following circumstances:
(1) Only a density bonus is granted
and no additional incentives are granted by
the city; or
(2) In-lieu incentives other than
direct financial contributions are granted by
the city.
(f) Target dwelling units and density
bonus dwelling units should be built on-site
and, whenever reasonably possible, be
distributed throughout the project site.
(g) In certain cases where a combined
density bonus housing project is proposed,
the target dwelling units and density bonus
dwelling units may be provided on a site
separate from the site of the market-rate
units. Construction of the target dwelling
units and density bonus dwelling units is
limited to sites within the same city quadrant
in which the market-rate units are located.
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However, in the event that two properties
abut a road, which forms a quadrant
boundary, and the two properties are
contiguous, except for the presence of the
roads, then tl'_e target dwelling units and/or
density bonus units may be provided on the
other property. Where the target dwelling
units are located within a master or specific
plan area, the first priority for location of the
alternative site is within the same master or
specific plan, followed in order by the same
local facilities management zone. In the
event that a local facilities management zone
crosses city quadrants, the target dwelling
units and density bonus dwelling units shall
be located within the same city quadrant in
which the mazket-rate units are located.
(h) Target dwelling units should be
located on si;es that are in proximity to or
will provide access to employment
opportunities, urban services, or major roads
or other transportation and commuter rail
facilities (i.e., freeways, bus lines) and that
are compatible with adjacent land uses.
(i) Densi;y bonus projects shall include
a mix of target dwelling units (by number of
bedrooms) in response to affordable housing
demand priorities of the city, whenever
feasible.
(j) Densi;y bonus projects shall comply
with all applicable development standards,
except those which may be modified as an
additional incentive as provided herein with
regard to adcitional incentives. In addition,
all units must conform to the requirements
of the appEcable building and housing
codes. The design of the target dwelling
units shall be reasonably consistent or
compatible with the design of the total
project development in terms of appearance,
materials and finished quality.
(k) No building permit shall be issued,
nor any development approval granted, for a
development which does not meet the
requirements of this chapter. No target
dwelling unit shall be rented or sold except
in accordance with this chapter. (Ord. -
01, 2001)
20.130.080 Expiration of affordability
tenure.
(a) At the end of the minimum tenure
for rental units in projects containing target
units or for-sale target dwelling units, a
notice of availability of the rental project or
for-sale target dwelling unit(s), shall be
prepared by the property owner and
submitted to the housing and redevelopment
director. Within ninety days of the
notification of availability of the rental
project or for-sale target dwelling unit(s),
the city or its designee has the first right of
refusal to buy the rental or for-sale target
dwelling unit(s) for the purposes of
providing affordable housing. Under this
option, the city or its designee will make a
good-faith effort to close escrow within
ninety days. The sales price of the rental
project or for-sale unit(s) shall be the fair-
market appraised value at the time of sale,
assuming continued affordability
restrictions. The fair-market valuation of the
rental project or for-sale target dwelling
unit(s) shall be determined by an appraisal
made by an agent mutually agreed upon by
the city and the property owner. Costs
associated with the appraisal shall be borne
by the property owner.
(b) If the city or its designee fails to
exercise its option of first right of refusal to
purchase the rental project or for-sale target
dwelling unit(s) within ninety days of
notification of availability of the rental
project or for-sale units, then the target units
13
may be converted to market-rate units under
the following circumstances:
(1) Tke management of the complex
intending to convert target rental units to
market-rate cnits shall give notice of such
intent, via registered mail, to each affected
tenant housekold and to the city clerk. The
notice shall be given at least one hundred
eighty days prior to the date proposed for
conversion to market-rate rents; and
(2) Each affected tenant household
shall be eligi>le to receive rental relocation
assistance in an amount equal to four (4)
months rent, the assistance to be provided by
the owner/management company and paid to
the tenant ~.t least sixty days prior to
conversion to market-rate rents. (Ord. -
01, 2001)
20.130.090 Density bonus or in-lieu
incentive application and review process.
(a) All residential projects requesting a
density bonus, additional incentive(s) or in-
lieu incentives pursuant to this chapter, shall
be required Jo comply with the following
application requirements:
(1) Application for On-Site Target
Dwelling Uaits. Target dwelling units
proposed to '>e developed within the same
project site :equiring such units shall be
designated or. the project plans and shall be
processed ur_der a site development plan
application in addition to the otherwise
required project development application(s)
(i.e., tentatiw~ maps, parcel maps, planned
unit developments, conditional use permits
and redevelopment permits). The site
development plan shall be processed
pursuant to Chapters 19 and 20 of this code.
No additiona hearings or approvals shall be
required, except as provided herein with
regard to the provision of financial
incentives. If the application involves a
request to the city for direct financial
incentives, then any action by the planning
commission on the application shall be
advisory only, and the city council shall
have the authority to make the final decision
on the site development plan application and
any related discretionary permits.
(2) Application for Combined
Density Bonus Housing Projects. Separate
development application(s) (including the
submittal of a site development plan) shall
be processed concurrently for both sites
unless the alternative site has previously
received its discretionary permits. No
additional applications, heatings or
approvals shall be required, except as
provided herein with regard to the provision
of financial incentives. If the application
involves a request to the city for direct
financial incentives, then any action by the
planning commission on the application
shall be advisory only, and the city council
shall have the authority to make the final
decision on all of the required development
permits.
(b) Preliminary Application. An
applicant/developer proposing a density
bonus housing project, shall submit a
preliminary application prior to the
submittal of any formal requests for
approvals of such housing development. The
preliminary application shall include the
following information:
(1) A brief description of the
proposal including the number of target
dwelling units and density bonus units
proposed;
14
(2) The zoning, general plan
designations and assessors parcel number(s)
of the project site;
(3) A site plan, drawn to scale, which
includes: building footprints, driveway and
parking layout, building elevations, existing
contours and proposed grading; and
(4) A letter identifying what specific
incentives (i.e., standards modifications,
density bonus, or fee subsidies) are being
requested of -.he city. Within thirty days of
receipt of the preliminary application by the
planning director for projects requesting
direct financial assistance from the city, the
department shall provide to an
applicant/developer, a letter which identifies
project issues of concern, the financial
assistance that the planning director can
support when making a recommendation to
the final decision making authority and the
procedures for compliance with this chapter.
The applicant shall also be provided with a
copy of this chapter and related policies, the
pertinent sect:_ons of the California Codes to
which reference is made in this chapter and
all required application forms.
(c) Submittal. The completed
application(s) shall include the following
information:
(1) A legal description of the total
site proposed for development of the target
dwelling units including a statement of
present ownership and present and proposed
zoning;
(2) A letter signed by the present
owner stating what incentives, if any, are
being requested from the city;
(3) A detailed vicinity map showing
the project location 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;
(4) Site plans, designating the total
number of units proposed on the site,
including the number of target dwelling
units and density bonus dwelling units, and
supporting plans per the application
submittal requirements;
(5) In the case of a request for any
incentive(s), a pro forma for the proposed
project to justify the request;
(6) In the case of a condominium
conversion request, a report documenting
the following information for each unit
proposed to be converted: the monthly
income of tenants of each unit throughout
the prior year, the monthly rent for each unit
throughout the prior year, and vacancy
information for each unit throughout the
prior year.
(d) Review. The community
development director and/or his/her
designated staff shall evaluate the request
based upon the following criteria:
(1) The density bonus housing
project helps achieve the city's housing
goals for lower-income, moderate-income or
qualified resident households, as set forth in
the housing element of the general plan;
(2) The requested incentive(s)
(including, but not limited to, additional
density bonuses, requests for a mixed use
project, reduction in development standards,
or direct or indirect financial contributions)
must be necessary to make the project
economically feasible;
15
(3) The housing project shall not
result in an overall development pattern that
is incompatible with other land uses in the
immediate vicinity; and
(4) The density bonus housing
project complies with the general plan,
zoning and development policies of the city;
(5) That the conversion of apartment
units to condominiums shall not result in a
reduction in the affordable housing stock for
lower income groups, as of most recent
inventory.
(6) In cases where an
applicant/developer agrees to construct a
housing development with ten percent
(10%), twenty percent (20%) or fifty percent
(50%) of the units restricted and affordable
to very low-ir_come, low-income or qualified
households respectively, and an additional
incentive is requested, the planning director
and/or his staff cannot disallow the
incentive(s) l'_'sted in Section 20.130.060(c)
on the basis that it is materially detrimental
to public hea~th and safety. (Ord. -01,
2001)
20.130.100 ~nclusion of density bonus
housing agreement as a condition of
development.
(a) Applicants/developers, requesting a
density bonus, additional incentives or in-
lieu incentives pursuant to this chapter, shall
demonstrate compliance with this chapter by
the preparation and approval of a density
bonus housing agreement. A density bonus
housing agreement shall be submitted by the
applicant to tae city. The terms of the draft
agreement shall be reviewed by the planning
director and director of housing and
redevelopmerI, who shall formulate a
recommendation and refer the matter to the
community development director or his/her
designee for final approval. Following the
approval and the signing by all parties, the
completed density bonus housing agreement
shall be recorded and the relevant terms and
conditions therefrom filed and recorded as a
deed restriction on those individual lots or
units of a property which are designated for
the location of target dwelling units. The
approval and recordation shall take place
prior to final map approval, or, where a map
is not being processed, prior to issuance of
building permits for such lots or units. The
density bonus housing agreement shall be
binding to all future owners and successors
in interest.
(b) A density bonus housing agreement
for new residential construction processed
pursuant to this chapter shall include the
following:
(1) The number of density bonus
dwelling units granted;
(2) The number of lower-income and
qualified resident dwelling units proposed;
(3) The unit size(s) (square footage)
of target dwelling units and the number of
bedrooms per target dwelling unit;
(4) The proposed location of the
lower-income and qualified resident target
dwelling units;
(5) Tenure of restrictions for target
dwelling units (of at least ten or thirty
years);
(6) Schedule for production of target
dwelling units;
(7) Incentives and/or financial
assistance provided by the city;
16
(8) Where applicable, tenure and
conditions governing the initial sale of for-
sale target units; and
(9) Where applicable, tenure and
conditions establishing rules and procedures
for qualifying tenants, setting rental rates,
filling vacaacies, and operating and
maintaining units for rental target dwelling
units.
(c) A der sity bonus housing agreement
for condominium conversions processed
pursuant to tl~.is chapter shall be required to
include the following:
(1) T~e number of density bonus
dwelling units granted;
(2) The number of lower and
moderate-income dwelling units proposed;
(3) Tke unit size(s) (square footage)
of target dwelling units and number of
bedrooms per target dwelling unit;
(4) Tae proposed location of the
lower and moderate-income target dwelling
units;
(5) Tenure of affordability for target
dwelling units (thirty-year minimum);
(6) Schedule for production of target
dwelling units;
(7) In-lieu incentives provided by the
city; and
(8) Terms and conditions of for-sale
target dwellir g units.
(d) Where an affordable housing
agreement is required pursuant to Section
20.125.140, both the density bonus and
inclusionary housing agreements shall be
combined into a single housing agreement.
(Ord. -01, 2001)
20.130.110 Density bonus resale
agreements.
(a) All buyers of for-sale target
dwelling units shall enter into a density
bonus resale agreement with the city's
housing authority prior to purchasing the
unit or property. The resale agreement shall
specify that the title to the subject property
or unit may not be transferred without prior
approval of the city's housing authority.
(b) Where an affordable housing
agreement involving the resale of
inclusionary housing is required pursuant to
Section 20.125.140, both the resale
agreements for inclusionary for-sale units
and target for-sale units shall be combined
into a single resale agreement.
20.130.120 Eligibility requirements.
Only households meeting the standards for
lower-income households, moderate-income
households, and qualified residents as
defined in Section 20.130.020 shall be
eligible to occupy target dwelling units.
(Ord. -01, 2001)
20.130.130 Management and monitoring.
Rental target dwelling units shall be
managed/operated by the developer or his or
her agent. Each developer of rental target
dwelling units shall submit an annual report
to the city identifying which units are target
dwelling units, the monthly rent, vacancy
information for each target rental dwelling
unit for the prior year, monthly income for
tenants of each target rental dwelling unit
17
throughout :he prior year, and other
information ~s required by the city, while
ensuring the privacy of the tenant. (Ord.
-01,200~_)
20.130.140 Administrative fee for target
dwelling units.
Over the minimum tenure of projects
containing target dwelling units, the city will
either directly or, via one or more third
parties, provide a number of recurring
services associated with the administration
and monitoring of such units. Although the
provision of some of these services will be
within the normal purview of existing city
activities, otl-_ers will involve new costs to
the city for which there are no existing
funding sources. Unless and until alternative
funding sources are identified, it is
necessary to require the builders/owners of
residential projects to share in these
administrative costs. Therefore, the city
council estabAshes an administrative fee for
target dwelling units, the amount to be
established by the city council resolution
and paid prior to the issuance of building
permit(s). (O::d. __-01, 2001)
20.130.150 Severability of provisions.
If any provision of this chapter or the
application :hereof to any person or
circumstances is held invalid, the remainder
of the chapter and the application of the
provision to other persons not similarly
situated or to other circumstances shall not
be affected thereby. (Ord. __-01, 2001)
J:\wpd~AttyklChapman\SSl:~Density_B onus_Ord_July5_jjc.doc
18
20.130.060 Bonuses and incentives.
(a) Upon application by a developer, pursuant to
Section 20.130.030, the final decision making
authority of the city shall grant either a density bonus
and at least one additional incentive or in-lieu
incentives of equivalent financial value to qualified
lower-income or qualified resident housing
developments.
(b) Upon application by a developer, pursuant to
Section 20.130.040, the final decision making
authority of the city shall grant either a density bonus
or in-lieu incentives of equivalent financial value to
qualified lower-income and/or moderate-income
housing developments.
(c) Additional incentives or in-lieu incentives, as
defined in Sections 20.130.020(1) and (12)
respectively, may: include, but are not limited to, the
following:
(1) A reduction in site development standards or
a modification of zoning code requirements or
architectural design requirements which exceed the
minimum building standards approved by the State
Building Standards Commission as provided in Part
2.5 (commencing with Section 18901) of Division 13
of the Health and Safety Code, including, but not
limited to, a reduction in setback and square footage
requirements and in the ratio of vehicle parking
spaces that would otherwise be required;
(2) Approval of mixed use zoning in conjunction
with the housing development and mixed use zoning
will reduce the cost of developing the housing; or
(3) Other regulatory incentives or concessions
proposed by the developer or the city which result in
identifiable cost reductions;
(4) Partial or additional density bonus;
(5) Subsidized or reduced planning, plan check
or permit fees; and
(6) Direct financial aid including, but not limited
to redevelopment set-aside funding, community
development block grant funding, or subsidizing
infrastructure, land cost or construction costs or other
incentives of equivalent financial value based upon
the land costs perdwelling unit.
(d) The value of each incentive will vary from
project to project, therefore, additional incentives or
in-lieu incentives shall be determined on a case by
case basis.
(e) The city shall provide at least one additional
incentive, for qualified housing developments as set
forth in Section 20.130.030, upon a written request
by the developer unless the city makes a written
finding that the additional incentive is not required in
order for allowable housing expenses to be set as
affordable. The applicant/owner shall be required to
show that the additional incentive is economically
necessary to make the units affordable as required by
this chapter. The process for requesting an additional
incentive and the criteria for evaluating such request
is contained in Section 20.130.090.
(f) It is the exclusive prerogative of the city to
offer in-lieu incentives of equivalent financial value,
based upon the land cost per dwelling unit, instead of
a density bonus and at least one additional incentive.
(g) Where a density bonus would cause a
housing development targeted for lower-income
households, moderate-income households or
qualified residents to exceed the upper end of the
general plan density range for the project site, then
this request shall be evaluated relative to the
proposal's compatibility with adjacent land uses and
its proximity to employment opportunities, urban
services or major roads.
(h) All qualified housing developments as set
forth in sections 20.130.030 and 20.130.040 shall be
given priority in processing. (Ord. 1304 § 1 (part),
2001)