Chapter 17.31
Density Bonuses and Affordable Housing Incentives
Sections:
17.31.030 Density Bonus Eligibility
17.31.040 Types of Density Bonuses and Incentives Allowed
17.31.050 Density Bonus Procedures
17.31.010 - Purpose
A. This Chapter is intended to implement the requirements of State law (Government Code Sections 65583, 65913, and 65915, et seq.) and the Housing Element of the General Plan, by offering incentives for the development of housing that is affordable to the types of households and qualifying residents identified in Section 17.31.030 (Density Bonus Eligibility).
B. This chapter also sets forth density bonus and housing incentives in addition to State law which encourage the development of housing that is affordable to a range of households with varying income levels.
17.31.015 - Applicability
This Chapter shall govern the review and approval of Use Permits, coastal development permits, and all other applicable planning permits.
17.31.020 - Definitions
The specialized and technical terms and phrases used in this Chapter are defined in Article 10 (Glossary & Index), under "Affordable and Inclusionary Housing Requirements."
"Effective date of this Chapter" means the date of Local Coastal Program effective certification by the Coastal Commission pursuant to Section 13544 of Title 14 of the California Code of Regulations.
17.31.030 - Density Bonus Eligibility
In order to be eligible for a density bonus and other incentives as provided by this Chapter, a proposed housing development shall comply with the following requirements, and satisfy all other applicable provisions of this Development Code, except as provided by Section 17.31.040 (Types of Density Bonuses and Incentives Allowed), below.
A. Resident requirements. In order to qualify for a density bonus, the housing development shall meet current State density bonus law requirements with regard to affordability and income levels. City staff shall keep a summary of State density bonus law available for review by interested parties.
B. Minimum project size to qualify for density bonus. The density shall be available only to a housing development of five or more dwelling units that provide affordable housing as compliance to the inclusionary housing ordinance 17.32 or with State law.
C. Condominium conversion projects. A condominium conversion project shall comply with the eligibility and other requirements in State law (Government Code Section 65915.5).
D. "Sweat equity" developments. A "sweat equity" housing development (one where some or all of the construction labor is provided by purchasers of the housing units), where all purchasers are lower income households, but where the continuing affordability of the units is not guaranteed for the time period required by Section 17.32.060 (D) (Continued Affordability), may be granted incentives in compliance with Subsection 17.31.040.E (Types of Density Bonuses and Incentives Allowed, Incentives for "sweat equity" developments).
E. Donations of Land. The dedication of land large enough to accommodate at least 15 percent of the market-rate units at densities suitable for affordable housing. Land donations must satisfy all of the following requirements:
1. Have the appropriate General Plan designation, zoning, and development standards to permit the feasible development of units affordable to households per Subsection 17.32.060.A in an amount equal to at least 15 percent of the units in the residential development;
2. Served by adequate public facilities and infrastructure;
3. Have all necessary approvals except building permits needed to develop the affordable housing;
4. Subject to a deed restriction to ensure continued affordability; and
5. Transferred to City or to a housing developer identified by the City.
17.31.040 - Types of Density Bonuses and Incentives Allowed
The amount of a density bonus and the extent of other incentives allowed by a proposed housing development shall be determined by the Council in compliance with this Section.
A. Density bonus in compliance with State Law.
1. Density ranges described in land use designations of the certified LCP may be exceeded consistent with the provisions of Government Code Section 65915 to encourage affordable housing production pursuant to §65915 of the California Government Code (Density Bonuses). In reviewing a proposed density increase, the City shall identify all feasible means of accommodating the density increase and consider the effects of such means on coastal resources. The City shall only grant a density increase if the City determines that the means of accommodating the density increase proposed by the applicant does not have an adverse effect on coastal resources. If, however, the City determines that the means for accommodating the density increase proposed by the applicant will have an adverse effect on coastal resources, the City shall not grant the density increase.
2. If a density bonus and/or other incentives cannot be accommodated on a site due to strict compliance with the provisions of this Development Code, the Council may modify or waive other development standards as necessary to accommodate all bonus units and other incentives to which the development is entitled only if it is determined that the means of accommodating the proposed development standard modifications would not have an adverse effect on coastal resources. If, however, the City determines that the means for accommodating the proposed development standard modifications would have an adverse effect on coastal resources, the City shall not grant the development standard modifications.
3. A development shall be entitled to additional incentives or concessions as provided by State law, if the additional requirements of the State law (Government Code Section 65915(d)(2)) are met and only if it is determined that the means of accommodating the additional incentives or concessions would not have an adverse effect on coastal resources. If, however, the City determines that the means for accommodating the additional incentives or concessions would have an adverse effect on coastal resources, the City shall not grant the development standard modifications.
4. Any housing development approved pursuant to Government Code Section 65915 shall be consistent with all applicable certified Local Coastal Program policies and development standards.
B. Additional density bonus. Projects may be eligible for an additional density bonus as outlined below:
1. Bonus for preferred design and/or green design. An additional 5 percent density bonus may be granted to developments with preferred design features and or green/environmentally sustainable design features as determined by the Planning Commission.
2. Bonus for donation of land. A density bonus of 10 percent is available for the donation of land that complies with the requirements of Subsection 17.31.030 E. (Density Bonus Eligibility, Donations of land).
3. Consider Impact on Coastal Resources. In reviewing a proposed additional density bonus, the City shall identify all feasible means of accommodating the additional density bonus and consider the effects of such means on coastal resources. The City shall only grant an additional density bonus if the City determines that the means of accommodating the additional density bonus proposed by the applicant does not have an adverse effect on coastal resources. If, however, the City determines that the means for accommodating the additional density bonus proposed by the applicant will have an adverse effect on coastal resources, the City shall not grant the additional density bonus.
C. Extent of bonus and incentives allowed in addition to those provided for by State Law.
1. Incentives allowed for "sweat equity" housing. A "sweat equity" development in compliance with Section 17.31.030.D (Density Bonus Eligibility, "sweat equity" developments) may be granted incentives only, in compliance with Subsection E., below.
2. Bonus and incentives allowed for housing with child care facility. A housing development that complies with the resident requirements of State Density Bonus Law, and also includes a childcare facility other than a large or small family day care home, that will be located on the site of, as part of, or adjacent to, the development shall be subject to the following additional bonus, incentives, and requirements.
a. Additional bonus and incentives. The City shall grant a housing development that includes a child care facility in compliance with this Subsection either of the following:
i) An additional density bonus that is an amount of floor area in square feet of residential space that is equal to or greater than the floor area of the child care facility; or
ii) An additional concession or incentive that contributes significantly to the economic feasibility of the construction of the child care facility.
b. Requirements to qualify for additional bonus and incentives. The City shall require, as a condition of approving the housing development, that:
i) The child care facility shall remain in operation for a period of time that is as long or longer than the period of time during which the density bonus units are required to remain affordable in compliance with Section 17.32.060.D. (Continued Affordability); and
ii) Of the children who attend the child care facility, the children of very low income households, lower income households, or families of moderate income shall equal a percentage that is equal to or greater than the percentage of dwelling units that are required for very low income households, lower income households, or families of moderate income in compliance with Section 17.31.030.A.
c. Consider Impact on Coastal Resources. In reviewing a proposed density bonus or concession for a child care facility, the City shall identify all feasible means of accommodating the density bonus or concession and consider the effects of such means on coastal resources. The City shall only grant a density bonus or concession for a child care facility if the City determines that the means of accommodating the density bonus or concession does not have an adverse effect on coastal resources. If, however, the City determines that the means for accommodating the density bonus or concession will have an adverse effect on coastal resources, the City shall not grant the density bonus or concession.
The City shall not be required to provide a density bonus or concession for a child care facility in compliance with this Subsection if it finds, based upon substantial evidence, that the community has adequate child care facilities.
D. Other incentives.
1. Available concessions or incentives. A qualifying project shall be entitled to at least one of the following concessions or incentives identified by State law (Government Code Section 65915[b]), in addition to the density bonus allowed by State Law and Subsection B, above:
a. A reduction in the site development standards of this Development Code [e.g. site coverage, landscaping, height restriction waivers, reduced parcel dimensions (i.e., minimum length and width, including lot area), and/or setback requirements];
b. Approval of mixed use zoning not otherwise allowed by this Development Code in conjunction with the housing development, if nonresidential land uses will reduce the cost of the housing development, and the nonresidential land uses are compatible with the housing development and the existing or planned development in the area where the project will be located;
c. A reduction in the vehicular parking standards, inclusive of handicapped and guest parking, not to exceed the following ratios:
i) Zero to one bedrooms: one on-site parking space.
ii) Two to three bedrooms: two on-site parking spaces.
iii) Four and more bedrooms: two and one-half parking spaces.
If the total number of parking spaces required for a development is other than a whole number, the number shall be rounded up to the next whole number. For purposes of this subdivision, a development may provide "on-site parking" per the Land Use and Development Code, but not through on-street parking;
d. Other regulatory incentives or concessions proposed by the developer or the City that will result in identifiable and actual cost reductions.
2. Limitations on concessions or incentives if adverse effects on coastal resources. In reviewing a proposal for one or more of the above incentives, the City shall consider all feasible alternative incentives and their effects on coastal resources. The City shall only grant one or more of the above incentives if the City determines that the incentive(s) proposed pursuant to this section will not have any adverse effects on coastal resources. The City may grant one or more of those incentives that do not have an adverse effect on coastal resources. If all feasible incentives would have an adverse effect on coastal resources, the City shall not grant any of the incentives.
3. Finding when concession or incentive not required. The City shall approve one or more of the above incentives, notwithstanding the other provisions of this Chapter, unless it makes a written finding, based on substantial evidence, that the additional concession or incentive is not required in order 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 in compliance with Government Code Section 65915(c), or all feasible incentives would have an adverse effect on coastal resources.
E. Applicant requested incentives.
1. Applicant specified concessions or incentives. An applicant may submit to the City a request for specific concessions or incentives in compliance with this Section.
2. Required findings to reject concession or incentive. The City shall grant the concession or incentive requested by the applicant unless the Council makes a written finding, based upon substantial evidence, of any of the following:
a. The concession or incentive is not required in order 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 affordable to very low, low, or median or moderate income households as required; or
b. The concession or incentive would have a specific adverse impact, as defined by Government Code Section 65589.5(d)(2), upon public health and safety, or the physical environment, 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
c. The concession or incentive does not result in identifiable, financially sufficient, and actual cost reductions as identified by the applicant in the incentive request to the City.
d. The incentives or concessions would not have an adverse effect on coastal resources. The City shall only grant an incentive or concession if the City determines that the development incentive or concession requested by an applicant pursuant to this section will not have any adverse effects on coastal resources. The City may grant one or more of those
F. Incentives for "sweat equity" developments. A "sweat equity" development where some or all of the construction labor is provided by purchasers of the housing units, all of whom are lower income households, but where the continuing affordability of the units is not guaranteed for the time period required by Section 17.32.060.D. (Continued Affordability), may be granted incentives as follows:
1. One incentive in compliance with Subsection C.1 may be granted to a development where 100 percent of the units are provided to low income households; and
2. Two incentives in compliance with Subsection C.1 may be granted to a development where 100 percent of the units are provided to very low income households.
3. Sweat equity projects will be subject to design review in compliance with Section 17.71.050 concurrent with the provision of any City incentive.
4. In reviewing a proposal for one or more of the above incentives, the City shall consider all feasible alternative incentives and their effects on coastal resources. The City shall only grant one or more of the above incentives if the City determines that the incentive(s) proposed pursuant to this section will not have any adverse effects on coastal resources. The City may grant one or more of those incentives that do not have an adverse effect on coastal resources. If all feasible incentives would have an adverse effect on coastal resources, the City shall not grant any of the incentives.
17.31.050 - Density Bonus Procedures
A. Permit requirements. A request for a density bonus and other incentives shall be evaluated and decided through Use Permit approval granted in compliance with Section 17.71.060 (Use Permits and Minor Use Permits); provided, the decision of the Commission on a Use Permit application shall be a recommendation to the Council, and the density bonus and other incentives shall be approved by the Council. A request for a density bonus and other incentives may also require a Coastal Development Permit.
B. Procedures for approval.
1. Required Findings. In addition to the findings required by Section 17.71.060 for the approval of a Use Permit and the findings required by Section 17.71.045 of this Development Code for the approval of a Coastal Development Permit, the approval of a density bonus and other incentives shall require that the review authority first make all of the following additional findings:
a. The residential development project will be consistent with the General Plan and the certified LCP;
b. The approved number of dwelling units can be accommodated by existing and planned infrastructure capacities;
c. Adequate evidence exists to indicate that the proposed residential project will provide affordable housing in a manner consistent with all standards set forth in Government Code Section 65915;
d. In the event that the City does not grant at least one financial concession or incentive as defined by State law (Government Code Section 65915) in addition to the density bonus, additional concessions or incentives are not necessary to ensure 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 Government Code Section 65915(c); and
e. There are sufficient provisions to guarantee that the affordable dwelling units will remain affordable for the required time period.
f. The approved density bonus and other incentives do not have an adverse effect on coastal resources.
2. Calculation of Bonus. In accordance with Government Code Section 65915 (g), the density bonus shall be calculated based on the otherwise maximum allowable residential density under the applicable zoning ordinance and land use element of the LCP. The "otherwise maximum allowable residential density" shall mean the maximum density determined by applying all site-specific environmental development constraints applicable under the coastal zoning ordinance and land use plan certified by the Coastal Commission.
3. Bonus shall be consistent with LCP. Any housing development approved pursuant to Government Code Section 65915 shall be consistent with all applicable certified local coastal program policies and development standards. In reviewing a proposed density increase, the City shall identify all feasible means of accommodating the density increase and consider the effects of such means on coastal resources. The City shall only grant a density increase if the City determines that the means of accommodating the density increase proposed by the applicant does not have an adverse effect on coastal resources. If, however, the City determines that the means for accommodating the density increase proposed by the applicant will have an adverse effect on coastal resources, the City shall not grant the density increase.
4. Granting of Incentives. In addition to a density bonus, the City shall grant to a housing development that complies with the provisions of Section A. above, one of the incentives or concessions identified in Government Code Section 65915(h), unless the City finds that an incentive or concession is not required in order to provide for affordable housing costs or rents. In reviewing a proposed incentive or concession, the City shall consider all feasible alternative incentives and concessions and their effects on coastal resources. The City shall only grant an incentive or concession if the City determines that the development incentive or concession requested by an applicant pursuant to this section will not have any adverse effects on coastal resources. The City may grant one or more of those incentives or concessions that do not have an adverse effect on coastal resources. If all feasible incentives or concessions would have an adverse effect on coastal resources, the City shall not grant any incentive or concession.
5. Affordable Housing Regulatory Agreement. An applicant requesting a density bonus shall draft, and agree to enter into, an Affordable Housing Regulatory Agreement with the City ("agreement") as described in Subsection 17.32.080.B and 17.32.080.C. The terms of the draft agreement shall be reviewed and revised as appropriate by the City Manager and/or the City Attorney. Provisions for enforcement of Affordable Housing Regulatory Agreements are established in Subsection 17.32.100.
6. Control of Affordable Unit Resale. In order to maintain the availability of the for-sale affordable units constructed in compliance with this Chapter, the resale conditions established in Subsection 17.32.100 shall apply. Any abuse in the resale provisions shall be referred to the City Attorney for appropriate action.
For the purposes of this section, "coastal resources" means any resource which is afforded protection under the policies of Chapter 3 of the Coastal Act, California Public Resources Code section 30200 et seq., including but not limited to public access, marine and other aquatic resources, environmentally sensitive habitat, and the visual quality of coastal areas.