Chapter 17.102
DENSITY BONUS AND OTHER DEVELOPER INCENTIVES
Sections:
17.102.010 Purpose and intent.
17.102.040 Development standards.
17.102.050 Additional incentives or concessions.
17.102.055 Additional density bonus for child care facility.
17.102.060 Application requirements and review.
17.102.065 Resale and occupancy restrictions on moderate income units.
17.102.070 Expiration and extension.
17.102.010 Purpose and intent.
This density bonus chapter is intended to provide incentives for the production of housing in accordance with Sections 65915 and 65917 of the California Government Code for very low, low, and moderate income households and senior households. In enacting this chapter, it is the intent of the city of Folsom to facilitate the development of affordable housing and to implement the goals, objectives, and policies of the city’s housing element. (Ord. 1145 § 2 (part), 2011)
17.102.020 Definitions.
Whenever the following terms are used in this chapter, they shall have the meaning established by this section:
A. “Additional incentives or concessions” means such regulatory incentives or concessions as specified in California Government Code Section 65915(i) which include the reduction of site development standards or a modification of zoning code requirements or architectural design requirements, approval of mixed use zoning in conjunction with the housing development, direct financial assistance, or other regulatory incentives or concessions which result in identifiable cost reductions.
B. “Affordable rent” means monthly housing expenses, including a reasonable allowance for utilities (excluding telephone), for rental target units reserved for very low or low income households, not exceeding the following calculations:
1. Very low income: thirty percent of fifty percent of area median income (adjusted for household size).
2. Low income: thirty percent of eighty percent of area median income (adjusted for household size).
C. “Affordable sales price” means a sales price at which moderate, low, or very low income households can qualify for the purchase of target units, calculated on the basis of underwriting standards of mortgage financing available for the development.
D. “Affordable unit” means a housing unit affordable to a low income household or very low income household.
E. “Area median income” means the median income for the Sacramento Primary Metropolitan Statistical Area (PMSA) (El Dorado, Placer and Sacramento Counties) as established and periodically updated by the U.S. Department of Housing and Urban Development.
F. “Condominium” means and includes:
1. “Condominium” as defined by Section 783 of the Civil Code;
2. “Community apartment project” as defined by Section 11004 of the Business and Professions Code;
3. “Stock cooperative” as defined by Section 11003.2 of the Business and Professions Code; and
4. “Planned development” as defined by Section 11003 of the Business and Professions Code.
The term “condominium” specifically includes, but is not limited to, the conversion of any existing structure for sale pursuant to a method described in subsections (F)(1) through (4) of this section.
“Condominium conversion” or “conversion” means a change in the ownership of a parcel or parcels of property, together with structures thereon, whereby the parcel or parcels and structures previously used as rental units are changed to condominium ownership.
“Condominium project” or “project” includes the real property and any structures thereon, or any structures to be constructed thereon, which are to be divided into condominium ownership.
“Condominium units” or “units” means the individual spaces within a condominium project owned as individual estates.
G. “Density bonus” means a density increase over the otherwise maximum allowable residential density under the city’s land use element of the general plan, zoning ordinances and any applicable specific plan as of the date of application by the applicant/developer to the city. (Government Code Section 65915(g).)
H. “Density bonus units” means those residential units granted pursuant to the provisions of this chapter which exceed the otherwise maximum residential density for the development site.
I. “Housing cost” means the sum of actual or projected monthly payments for all of the following associated with for-sale target units: principal and interest on a mortgage loan, including any loan insurance fees, property taxes and assessments, fire and casualty insurance, property maintenance and repairs, homeowner association fees, and a reasonable allowance for utilities (excluding telephone).
J. “Housing development” means one or more groups of projects for residential units, including (1) a project to substantially rehabilitate and convert an existing commercial building to residential use, or (2) the substantial rehabilitation of an existing multifamily dwelling, as defined in Government Code Section 65863.4(d), where the result of the rehabilitation would be a net increase in available residential units.
K. “Low income household” means households as defined in Health and Safety Code Section 50079.5, whose income does not exceed the low income limits applicable to the city as published and periodically updated by the State Department of Housing and Community Development.
L. “Nonrestricted unit” means all units within a housing development excluding the target units.
M. “Senior citizen housing development” means a residential development developed, substantially rehabilitated, or substantially renovated for senior citizens that has at least thirty-five dwelling units and complies with the requirements in Civil Code Section 51.3.
N. “Target unit” means a dwelling unit within a housing development which will be reserved for sale or rent to very low, low, or moderate income households, or senior residents.
O. “Very low income household” means households as defined in Health and Safety Code Section 50105, whose income does not exceed the very low income limits applicable to the city, as published and periodically updated by the State Department of Housing and Community Development.
P. “Moderate income household” means households as defined in Health and Safety Code Section 50093, whose income does not exceed the moderate income limits applicable to the city, as published and periodically updated by the State Department of Housing and Community Development.
Q. “Child care facility” means a facility installed, operated, and maintained for the nonresidential care of children as defined under applicable state licensing requirements for the facility. Such facilities include, but are not limited to, infant centers, preschools, extended day care facilities, school-age child care centers, or family day care homes. (Ord. 1145 § 2 (part), 2011)
17.102.030 Implementation.
A. Density Bonus.
1. The city shall grant a density bonus to an applicant or developer of a housing development, consisting of five or more dwelling units, who agrees to provide the following:
a. At least ten percent of the total units of a housing development for low income households; or
b. At least five percent of the total units of a housing development for very low income households; or
c. A senior citizen housing development.
All density calculations resulting in fractional units shall be rounded up to the next whole number.
2. In determining the number of target units to be provided pursuant to this section, the maximum residential density shall be multiplied by 0.05 where very low income households are targeted, or by 0.10 where low income households are targeted. The density bonus units shall not be included when determining the total number of target units in the housing development. When calculating the required number of target units, any fractions of units shall be rounded to the next larger number.
3. Amount of Density Bonus.
a. General Density Bonus. The density bonus shall be a density increase of at least twenty percent, unless a lesser percentage is elected by the applicant/developer over the otherwise maximum allowable residential density. The amount of density bonus to which the applicant/developer is entitled shall vary according to the amount by which the percentage of affordable units exceeds the percentage set forth in subsection (A)(1) of this section. For each percent increase above ten percent in the percentage of units affordable to low income households, the density bonus shall be increased by one and one-half percent up to a maximum of thirty-five percent. For each one percent increase above five percent in the percentage of units affordable to very low income households, the density bonus shall be increased by two and one-half percent up to a maximum of thirty-five percent. For senior citizen housing developments, the density bonus shall be a flat twenty percent.
b. Density Bonus for Condominium Projects. If a development does not meet the requirements set forth above, but the applicant/developer agrees or proposes to construct a condominium project as defined in Section 1351(f) or a planned development as defined in Section 1351(k) of the Civil Code, in which at least ten percent of the total dwelling units are reserved for persons and families of moderate income as defined in Section 50093 of the Health and Safety Code, a density bonus of at least five percent shall be granted, unless a lesser percentage is elected by the applicant, over the otherwise maximum allowable residential density. For each one percent increase above ten percent of the percentage of units affordable to moderate-income households, the density bonus shall be increased by one percent up to a maximum of thirty-five percent.
c. Density Bonus for Land Dedication. When an applicant for a tentative subdivision map, parcel map, or other residential approval donates land to the city and otherwise satisfies the requirements of Government Code Section 65915(g), the applicant shall be entitled to a fifteen percent increase above the otherwise maximum allowable residential density. For each one percent increase above the minimum ten percent land donation, the density bonus shall be increased by one percent, up to a maximum of thirty-five percent. The land donation density bonus and general density bonus can be used together, up to a combined maximum of thirty-five percent (Government Code Section 65915(g).)
4. Upon request by the applicant, the city shall not require that a housing development meeting the requirements of this section provide a vehicular parking ratio, inclusive of handicapped and guest parking, that exceeds:
a. Zero (studio) to one bedrooms: one on-site parking space per unit;
b. Two to three bedrooms: two on-site parking spaces per unit;
c. Four and more bedrooms: two and one-half parking spaces per unit.
If the total number of parking spaces required for a housing development is other than a whole number, the number shall be rounded up to the next whole number. For purposes of this subsection, a development may provide on-site parking through tandem parking or uncovered parking, but not through on-street parking.
B. Incentives or Concessions.
1. The city shall grant an incentive or concession unless the city makes one of the following findings:
a. The incentive or concession is not required in order to provide for affordable housing costs, as defined in Section 50052.5 of the Health and Safety Code, or for affordable rents for the targeted units.
b. The incentive or concession would have a specific adverse impact, as defined in Government Code Section 65589.5(d)(2), upon public health and safety or the physical environment or on any real property that is 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.
c. The concession or incentive would be contrary to state or federal law.
2. Number of Incentive(s) or Concession(s). In addition to the eligible density bonus percentage described in this section, and in accordance with Government Code Section 65915(d)(2), the applicant shall receive the following number of incentive(s) or concession(s):
a. One incentive or concession for projects that include at least ten percent of the total units for low income households, at least five percent for very low income households, or at least ten percent for persons and families of moderate income in a condominium or planned development.
b. Two incentives or concessions for projects that include at least twenty percent of the total units for low income households, at least ten percent for very low income households, or at least twenty percent for persons and families of moderate income in a condominium or planned development.
c. Three incentives or concessions for projects that include at least thirty percent of the total units for low income households, at least fifteen percent for very low income households, or at least thirty percent for persons and families of moderate income in a condominium or planned development. (Ord. 1145 § 2 (part), 2011)
17.102.040 Development standards.
A. Target units shall be constructed concurrently with nonrestricted units unless both the city and the applicant/developer agree, in writing, to an alternative schedule for development.
B. If the applicant/developer is entitled to a density bonus pursuant to this chapter and the city grants at least one additional incentive, the applicant/developer shall agree to and ensure the continued affordability of all low income and very low income target units for a minimum of thirty years or such longer period of time as required by the construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy program. The target units for low income households shall be affordable at a rent that does not exceed thirty percent of eighty percent of area median income. The target units for very low income households shall be affordable at a rent that does not exceed thirty percent of fifty percent of area median income.
C. In determining the maximum affordable rent or affordable sales price of target units, the following household and unit size assumptions shall be used, unless the housing development is subject to different assumptions imposed by other governmental regulations:
|
SRO (single room occupancy) unit |
75 percent of 1 person |
|
0 bedroom (studio) |
1 person |
|
1 bedroom |
2 person |
|
2 bedroom |
3 person |
|
3 bedroom |
4 person |
|
4 bedroom |
5 person |
D. Target units shall be dispersed within the housing development wherever possible. Where feasible, the number of bedrooms of the target units shall be equivalent to the bedroom mix of the nontarget units of the housing development, except that the developer may include a higher proportion of target units with more bedrooms. The design and appearance of the target units shall be compatible with the design of the total housing development. Housing developments shall comply with all applicable development and design standards, except those which may be modified as provided by this chapter.
E. Compliance with all of the provisions of this chapter shall be made a condition of the discretionary planning permits (e.g., tentative subdivision maps, tentative parcel maps, site plans, planned development permits, conditional use permits, etc.) for all housing developments.
F. Applicant/developer shall execute and record any agreements or documents reasonably deemed necessary by the city to ensure compliance with and implementation of this chapter. (Ord. 1145 § 2 (part), 2011)
17.102.050 Additional incentives or concessions.
The need for additional incentives or concessions will vary for different housing developments. Therefore, the allocation of additional incentives or concessions shall be determined on a case-by-case basis. The additional incentives or concessions may include any of the following:
A. 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 Part 2.5 (commencing with Section 18901) of Division 13 of the Health and Safety Code, including, but not limited to:
1. Reduced minimum lot sizes and/or dimensions.
2. Reduced minimum lot setbacks.
3. Reduced minimum outdoor and/or private outdoor living area.
4. Increased maximum lot coverage.
5. Increased maximum building height and/or stories.
6. Reduced on-site parking standards, including the number or size of spaces and garage requirements.
7. Reduced minimum building separation requirements.
B. Approval of mixed use zoning in conjunction with the housing development if commercial, office, industrial, or other nonresidential land uses will reduce the cost of the housing development and if the commercial, office, industrial, or other nonresidential land uses are compatible with the housing development and the existing or planned development in the area where the proposed housing development will be located.
C. Other regulatory incentives or concessions proposed by the applicant/developer or the city that result in identifiable cost reductions.
D. Priority processing of a housing development that provides income-restricted units or a senior citizen housing development. (Ord. 1145 § 2 (part), 2011)
17.102.055 Additional density bonus for child care facility.
A. Housing developments meeting the requirements of this section and including a child care facility that will be located on the premises of, as part of or adjacent to, the housing development shall receive either of the following:
1. An additional density bonus that is an amount of square footage of residential space that is equal to or greater than the amount of square footage in the child care facility.
2. An additional incentive or concession to be determined by the city at its sole and complete discretion that contributes significantly to the economic feasibility of the construction of the child care facility.
B. The density housing bonus agreement for the housing development shall ensure that:
1. The child care facility shall remain in operation for a period of time that is as long as or longer than the period of time during which the target units are required to remain affordable.
2. Of the children who attend the child care facility, the children of very low income households, low income households, or moderate income households shall equal a percentage that is equal to or greater than the percentage of target units that are required pursuant to this section.
C. The city shall not be required to provide a density bonus or incentive or concession for a child care facility if it makes a written finding, based upon substantial evidence, that the community has adequate child care facilities. (Ord. 1145 § 2 (part), 2011)
17.102.060 Application requirements and review.
A. An application pursuant to this chapter for a density bonus and an additional incentive or concession shall be processed concurrently with and in the same manner as any other application(s) required for the housing development unless the development is granted priority processing. If an applicant/developer is entitled to a density bonus pursuant to this chapter, final approval or denial of a request for an additional incentive or concession shall be made by: (1) the planning commission if no concurrent application requires city council approval and the applicant/developer only requests a reduction of site development standards or a modification of zoning code or architectural design requirements; or (2) the city council if a concurrent application requires city council approval or the applicant/developer requests an additional incentive or concession other than a reduction of site development standards or a modification of zoning code or architectural design requirements.
B. If an applicant/developer is requesting a waiver or modification of development and zoning standards on the grounds that existing development and zoning standards would otherwise inhibit utilization of a density bonus, such request shall be made concurrently with any request for an additional incentive or concession and shall be processed with and approved or denied in accordance with the provisions herein for the processing and approval or denial of a request for an additional incentive or concession. Waiver or modification of development and zoning standards shall only be allowed if the waiver or modification is necessary to make the housing units economically feasible.
C. Any approval or denial of a request for a waiver or modification of development and zoning standards or an additional incentive or concession shall be supported by written findings in support of such approval or denial. Nothing in this chapter requires the city to waive or reduce development standards if the waiver or reduction would have a specific, adverse impact, as defined in Government Code Section 65589.5(d)(2), upon health, safety, or the physical environment and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact, or if the waiver or reduction would have an adverse impact on any real property listed in the California Register of Historic Resources or be contrary to state or federal law.
D. An applicant/developer may submit a preliminary proposal for the housing development prior to the submittal of any formal requests for general plan amendments, zoning amendments, or subdivision map approvals. Applicants are encouraged to schedule a pre-application conference with the community development director or designated staff to discuss and identify potential application issues, including prospective additional incentives or concessions pursuant to Section 17.102.050. A preliminary application shall include the following information:
1. A brief description of the proposed housing development, including the total number of units, target units, and density bonus units proposed.
2. The zoning and general plan designations and assessor’s parcel number(s) of the project site.
3. A vicinity map and preliminary site plan, drawn to scale, including building footprints, driveway and parking layout.
4. If a waiver or modification of development and zoning standards is requested, the application shall demonstrate how the existing development and zoning standards inhibit the utilization of the density bonus on the specific site and that the waiver or modification is necessary to make the housing units economically feasible.
5. If an additional incentive or concession is requested, the application should describe why the additional incentive or concession is necessary to provide the target units in accordance with this chapter.
E. The city shall, within ninety days of receipt of a written proposal, notify the applicant/developer, in writing, of project issues of concern and the procedures for compliance with this chapter, including procedures for waiving or modifying development and zoning standards that would otherwise inhibit the utilization of the density bonus on specific sites. The procedures for the waiver or modification of development and zoning standards shall include, but not be limited to, such items as minimum lot size, side yard setbacks, and placement of public works improvements.
F. The community development director shall inform the applicant/developer whether the requested waiver or modification of development and zoning standards and/or the additional incentive or concession shall be recommended for consideration with the proposed housing development, or whether alternative or modified development and zoning standards and/or additional incentive or concession shall be recommended for consideration in lieu of the requested waiver or modification of development and zoning standards or additional incentive or concession. (Ord. 1145 § 2 (part), 2011)
17.102.065 Resale and occupancy restrictions on moderate income units.
An applicant shall agree, and the city shall ensure, that the initial occupants of moderate income units that are directly related to the receipt of the density bonus in a condominium project are persons and families of moderate income, as defined in Health and Safety Code Section 50093, and that the units are offered at an affordable housing cost, as defined in Health and Safety Code Section 50052.5. The city shall enforce an equity sharing agreement in accordance with Government Code Section 65915. (Ord. 1145 § 2 (part), 2011)
17.102.070 Expiration and extension.
A. Any waiver or modification of development and zoning standards and/or the granting of additional incentives or concessions is project specific. In any case where a housing development with approved waivers or modifications of development and zoning standards and/or additional incentives or concessions has not commenced construction within the time limit set by either the planning commission or the city council (whichever has final approval authority over the particular housing development) or within one year, if no specific time limit has been set, then without further action such waivers or modifications of development and zoning standards and/or additional incentives or concessions shall be null and void. Construction is deemed commenced, for purposes of this section, upon issuance of a building permit for an approved dwelling unit.
B. The planning commission or the city council (whichever has final approval authority over the particular housing development) may extend the deadline for commencement of construction for a period or periods not to exceed twelve months upon receipt of a written request which shall include the reason for the delay and the requested extension and any other information as reasonably deemed necessary by the community development director. (Ord. 1145 § 2 (part), 2011)
17.102.080 Appeal procedure.
A. Any person dissatisfied with any final action of the planning commission on a request for a density bonus and an additional incentive or concession and/or waiver or modification of development and zoning standards may appeal therefrom to the city council, at any time within ten days after the rendition of the decision of the planning commission. The appeal is taken by filing a notice of appeal with the community development director. Upon filing of the notice of appeal, and payment of a filing fee, the community development director must, within ten days, transmit to the city clerk all exhibits and documents on file, together with the finding of the planning commission.
B. The city council shall hold a hearing upon said appeal after giving written notice to the applicant, property owners within three hundred feet of the subject property as shown on the last equalized assessment roll and any other persons who have filed a written request for notice. Such notices shall be mailed at least ten days prior to said hearing. (Ord. 1145 § 2 (part), 2011)
17.102.090 Other provisions.
No official action such as the issuance of a building permit, license or other type of permit shall be taken while an appeal or proceeding for a density bonus and an additional incentive(s) or concession(s) and/or waiver or modification of development and zoning standards is pending. (Ord. 1145 § 2 (part), 2011)