Chapter 16.98
AFFORDABLE HOUSING OVERLAY
Sections:
16.98.040 Affordable housing requirement.
16.98.060 Incentives and fee waivers.
16.98.070 Continued affordability.
16.98.080 Additional provisions.
16.98.010 Purpose and goal.
The purpose of the affordable housing overlay ("AHO") zone established by this chapter is to encourage the development of affordable housing for low-, very low- and extremely low-income households. The AHO serves to implement the housing element goal of providing new housing that addresses affordable housing needs in the city of Menlo Park by establishing development regulations for designated housing opportunity sites. The AHO is also intended to address those housing projects which provide a greater percentage of affordable housing units than required pursuant to Chapter 16.96 (Below Market Rate Housing Program). The AHO encourages the production of affordable housing by providing density bonuses and other incentives to developers that provide affordable housing as a part of development projects. To qualify, projects must restrict housing units to certain income levels as further described in the chapter. The AHO may be applied by itself or in combination with State Density Bonus Law to density bonuses beyond those allowable under State Density Bonus Law. (Ord. 1103 § 3, 2023).
16.98.020 Definitions.
(a) "Affordable units" means residential dwelling units that are restricted to households that qualify as extremely low, very low, and low income. For for-sale residential projects, moderate income also applies as an affordable unit.
(b) "Mixed use" means developments consisting of residential and nonresidential uses with at least two-thirds (2/3) of the square footage designated for residential use. (Ord. 1103 § 3, 2023).
16.98.030 Applicability.
The AHO and this chapter apply to the Menlo Park El Camino Real and Downtown Specific Plan area, properties zoned R-4-S(AHO) (high density residential, special—affordable housing overlay), properties zoned R-3 (apartment) and located around the El Camino Real/Downtown Specific Plan area as described in Chapter 16.30, and housing opportunity sites identified in the adopted housing element (2023-2031) as described in Appendix 7-1, Table 2, with the exception for site No. 38. Properties within the AHO may, but are not required to, utilize the rules and regulations of this chapter. (Ord. 1103 § 3, 2023).
16.98.040 Affordable housing requirement.
(a) To qualify for the density bonuses and incentives pursuant to this chapter, a development project must:
(1) Be a one hundred percent (100%) residential or mixed-use project;
(2) Provide five (5) or more residential units;
(3) Provide a minimum number of affordable units as follows:
(A) At least twenty percent (20%) of the total residential units in the development shall be restricted to extremely low-, very low-, and low-income households in rental developments;
(B) At least twenty percent (20%) of the total residential units in the development shall be restricted to extremely low-, very low-, low-income and moderate-income households in for-sale and condominium developments;
(C) At least twenty-five percent (25%) of the total affordable units shall be restricted to very low- and extremely low-income households, or at least fifteen percent (15%) of the total affordable units shall be restricted to extremely low-income households.
(b) The affordable units required pursuant to subsection (a)(3) of this section shall be calculated based on the total number of units in the development, excluding any units permitted pursuant a density bonus as set forth in Section 16.98.050. (Ord. 1103 § 3, 2023).
16.98.050 Density bonus.
Development projects meeting the criteria set forth in Section 16.98.040 shall be eligible for a density bonus pursuant to this section.
(1) For one hundred percent (100%) residential or mixed-use developments meeting the criteria of Section 16.98.040, a density bonus shall be granted and calculated pursuant to Table 1 of this section.
(2) AHO Density Bonus Not Combined with State Density Bonus. Where at least twenty percent (20%) of the total number of units, exclusive of any density bonus units, of a housing development are restricted as affordable units, the density bonus granted and calculated shall be pursuant to Table 1.
(A) The percentage of affordable units shall be calculated as a percentage of the total number of units in a project, exclusive of any density bonus units. The density bonus is the sum of the applicable density bonus based on the percentage of affordable units in the applicable income category. In no instance shall the total density bonus exceed sixty percent (60%), unless a project is one hundred percent (100%) affordable. For a one hundred percent (100%) affordable residential project, the project is allowed a maximum density bonus of eighty percent (80%) for the residential units.
(3) AHO Density Bonus Combined with State Density Bonus. Where at least twenty-five percent (25%) of the total units, exclusive of any density bonus units, of a housing development are restricted as affordable units, the density bonus granted and calculated pursuant to Table 1 may be combined with a density bonus granted pursuant to the State Density Bonus Law (Government Code Section 65915 et seq.).
(A) When application of the AHO is combined with the provisions of State Density Bonus Law, the density bonus is additive. The percentage of affordable units shall be calculated as a percentage of the total number of units in a project, not including any density bonus units. The combined density bonus is the sum of the following: (i) the applicable density bonus based on the proposed project pursuant to State Density Bonus Law and (ii) one-quarter (0.25) of the applicable density bonus provided by the AHO in Table 1. In no instance shall the total density bonus exceed sixty-five percent (65%), unless a project is one hundred percent (100%) affordable. For a one hundred percent (100%) affordable residential project combining use of the AHO and State Density Bonus Law, the project is allowed a density of up to one hundred fifty (150) dwelling units per acre.
(B) A density bonus may only be utilized to increase density of the residential uses of a development project and shall not be utilized to increase FAR, height, or any other density metric for nonresidential uses within a development project.
|
Percentage of Affordable Units in a Development |
Very Low Income** |
Low Income |
Moderate Income* |
|---|---|---|---|
|
5% |
20.0% |
0% |
0% |
|
6% |
22.5% |
0% |
0% |
|
7% |
25.0% |
0% |
0% |
|
8% |
27.5% |
0% |
0% |
|
9% |
30.0% |
0% |
0% |
|
10% |
32.5% |
20.0 |
5.0% |
|
11% |
35.0% |
21.5% |
6.0% |
|
12% |
38.75% |
23% |
7.0% |
|
13% |
42.5% |
24.5% |
8.0% |
|
14% |
46.25% |
26.0% |
9.0% |
|
15% |
50.0% |
37.0% |
10.0% |
|
16% |
50.0% |
37.0% |
10.0% |
|
17% |
50.0% |
37.0% |
10.0% |
|
18% |
50.0% |
37.0% |
10.0% |
|
19% |
50.0% |
37.0% |
10.0% |
|
20% |
51.0% |
39.0% |
17.0% |
|
21% |
52.0% |
41.0% |
18.5% |
|
22% |
53.0% |
43.0% |
20.0% |
|
23% |
54.0% |
45.0% |
21.5% |
|
24% |
55.0% |
47.0% |
23.0% |
|
25% |
56.0% |
49.0% |
24.5% |
|
26% |
57.0% |
51.0% |
26.0% |
|
27% |
58.0% |
53.0% |
27.5% |
|
28% |
59.0% |
55.0% |
29.0% |
|
29% |
60.0% |
57.0% |
30.5% |
|
30% |
60.0% |
60.0% |
32.0% |
|
31% |
60.0% |
60.0% |
33.5% |
|
32% |
60.0% |
60.0% |
35.0% |
|
33% |
60.0% |
60.0% |
36.5% |
|
34% |
60.0% |
60.0% |
38.0% |
|
35% |
60.0% |
60.0% |
39.5% |
|
36% |
60.0% |
60.0% |
41.0% |
|
37% |
60.0% |
60.0% |
42.5% |
|
38% |
60.0% |
60.0% |
44.0% |
|
39% |
60.0% |
60.0% |
45.5% |
|
40% |
60.0% |
60.0% |
47.0% |
|
41% |
60.0% |
60.0% |
48.5% |
|
42% |
60.0% |
60.0% |
50.0% |
|
43% |
60.0% |
60.0% |
51.5% |
|
44% |
60.0% |
60.0% |
53.0% |
|
100% |
80.0% |
80.0% |
80.0% |
* Applicable to only home ownership units.
** Or any income category with an AMI that is less than very low-income AMI.
*** All density bonus calculations resulting in fractions of less than one-half (0.5) shall be rounded down to the next whole number. All density bonus calculations resulting in fractions of one-half (0.5) and up are rounded up to the next whole number.
(Ord. 1103 § 3, 2023).
16.98.060 Incentives and fee waivers.
In addition to granting a density bonus, the city shall grant one (1) or more "incentives" to each project that qualifies for a density bonus pursuant to this chapter. An applicant for a housing development that qualifies for a density bonus utilizing the AHO shall be entitled to each and only the following incentives:
(1) Floor Area Ratio. A project shall be permitted to increase the floor area ratio by an amount that proportionally corresponds to the increase in allowable density identified in Section 16.98.050 and an additional five percent (5%) or other increase reasonably sufficient to make development of very low-, low- and moderate-income multiple-bedroom units and family housing feasible.
(2) Stories/Height. A project shall be permitted to increase the height up to the maximum number of feet that are necessary to accommodate the increased density afforded by the density bonus. The applicant shall demonstrate to the satisfaction of the community development director, or designee, that the height increase is necessary to accommodate the increased density afforded by the density bonus. For mixed use projects the height increase is only applicable to the residential component of the project.
(3) Parking. Unless modified herein, the parking requirements in the underlying zoning designation of the property shall apply. All fractional units shall be rounded up to the nearest whole number. The parking requirements in the AHO shall be modified for each affordable unit as follows:
(A) Number of spaces:
(i) Studio requires one-half (0.5) parking space.
(ii) A one (1) bedroom requires one (1) parking space.
(iii) A two (2) bedroom or larger unit requires one and one-half (1.5) parking spaces.
(B) A senior citizen housing project as defined in Sections 51.3 and 51.12 of the Civil Code shall be required to provide no more than one-half (0.5) parking spaces per dwelling unit.
(C) The spaces required for the affordable units need not be covered or located in a garage or carport.
(D) If two (2) spaces are being provided for any one (1) affordable dwelling unit, the spaces may be in tandem.
(4) Parcels that are adjacent to one another, share any portion of a property line, and are within the same underlying zoning district may calculate density, floor area ratio, building coverage, paving, landscaping and required parking across the parcels; provided, that there is a recorded agreement among the owner(s) of the parcels transferring development rights between the parcels such that the maximum overall density of the combined parcels is not exceeded.
(5) Coverage. In addition to the amount necessary to physically accommodate the increased density provided for by this chapter, any applicable maximum building coverage and/or allowable paving requirement shall be increased by five percent (5%) and the minimum open space/landscaping requirement reduced by ten percent (10%) from the underlying zoning designation.
(6) Setbacks. In addition to the amount necessary to physically accommodate the increased density provided for by this chapter, required setbacks shall be reduced to five (5) feet, except when the parcel subject to the AHO abuts a parcel zoned single-family residential, in which case the setbacks identified in underlying zoning shall control.
(7) Open Space. Any common and/or private open space may be reduced by the amount necessary to physically accommodate the increased density provided for by this chapter.
(8) Processing Fees. Those projects that provide at least fifty percent (50%) of the units in a project for low-income households or twenty-five percent (25%) for very low-income households may be entitled to a fee waiver for all processing fees associated with the various applications for development, subject to demonstrating that the project would not be feasible without the waiver of processing fees.
(9) Other Fees. Those projects that provide at least fifty percent (50%) of the units in the project for low-income households or twenty-five percent (25%) for very low-income households may be entitled to a reduction in all other fees in an amount that corresponds to the increase in allowable density identified in Section 16.98.050, with a maximum of sixty-five percent (65%) for a one hundred percent (100%) affordable housing project, subject to demonstrating that the project would not be feasible without the waiver of certain impact fees. Any project requesting a reduction or waiver of the traffic impact fee, park dedication fee, building construction street impact fee, Menlo Park El Camino Real/Downtown Specific Plan preparation fee, or other fee(s) in excess of that percentage reduction shall apply for the requested reduction or waiver, which shall be subject to a discretionary review and approval process. The city council shall be the final decision maker regarding any such request.
(10) Incentives and fee waivers granted pursuant to this section shall not be combined with any incentives or fee waivers granted pursuant to the State Density Bonus Law (Government Code Section 65915 et seq.). (Ord. 1103 § 3, 2023).
16.98.070 Continued affordability.
Prior to issuance of any building permit, the applicant shall execute an agreement with the city in a form acceptable to the city attorney ensuring the continued affordability of the affordable units for a period of not less than fifty-five (55) years and compliance with the city’s below market rate housing program guidelines. This content may be part of a below market housing agreement. (Ord. 1103 § 3, 2023).
16.98.080 Additional provisions.
Development projects approved pursuant to this chapter shall adhere to the following provisions:
(1) Review of projects under this chapter shall occur concurrently with review of any other entitlements required for the project.
(2) The affordable units must be constructed concurrently with market rate units and shall be integrated into the project and be comparable in construction quality and exterior design to any market rate units.
(3) The number of bedrooms in the affordable units shall be consistent with the mix of market rate units. Applicants may elect to include a higher percentage of units with more bedrooms.
(4) The affordable units shall also comply with the city’s below market rate housing program guidelines. (Ord. 1103 § 3, 2023).