Chapter 17.25 AGREEMENTS

Chapter 17.25
AGREEMENTS

Sections:

17.25.010 Development agreements.

(A) Purpose. This Title provides procedures and requirements for the consideration of development agreements for the purposes specified in and as authorized by Section 65864 et seq. of the California Government Code.

(B) Applicability. Under certain circumstances, development agreements are appropriate tools to strengthen the public planning process, encourage private participation in comprehensive planning by providing a greater degree of certainty, and through corresponding assurances by the developers, reduce the economic costs of development to the City, allow for the orderly planning of public improvements and services, and assure, to the extent feasible, the City’s goals are achieved.

(C) Review Authority. The Planning Commission shall review an application for a development agreement at a public hearing pursuant to PMC § 17.20.020 (Notification procedures) and shall forward a recommendation, which may include amendments, to the City Council.

(D) Application Procedure.

(1) Only a qualified applicant may file an application for a development agreement. For the purposes of this Chapter, a qualified applicant is a person who has a legal or equitable interest in the real property which is the subject of the development agreement, or an authorized agent of a person who has a legal or equitable interest. The Director may require an applicant to submit a title report or other evidence satisfactory to the Director to verify the applicant’s interest in the real property and of the authority of the agent to act for the applicant.

(2) An application for a development agreement shall be made on a form provided for that purpose by the Department, along with the required fee and deposit established by City Council resolution.

(3) An application for a development agreement may be filed concurrently with any other application(s) required for the project on the same property.

(4) A draft of the proposed development agreement may be submitted along with the application. The agreement shall be in a form acceptable to the City Attorney. If deemed appropriate, the City Attorney may draft the initial agreement for review by the parties thereto.

(5) The Director may require additional information if deemed necessary to determine whether the development agreement is consistent with the goals, policies, and objectives of the General Plan or any applicable Specific Plan.

(E) Action by Planning Commission.

(1) The Planning Commission shall hold a public hearing on an application for a development agreement. The hearing shall be scheduled and notice given as prescribed in PMC § 17.20.020 (Notification procedures).

(2) The Planning Commission shall determine whether the development agreement is consistent with the required findings for approval as contained in Subsection (G) of this Section and shall recommend to the City Council that the development agreement be approved, approved as amended, or denied.

(F) Action by City Council.

(1) Upon receiving a recommendation from the Planning Commission on a proposed development agreement, the City Council shall hold a public hearing. The hearing shall be scheduled and notice given as prescribed in PMC § 17.20.020 (Notification procedures).

(2) Following the closing of a public hearing, the City Council shall determine if the development agreement is consistent with the findings as specified within Subsection (G) of this Section and may approve, modify, or deny the recommendation of the Planning Commission.

(G) Required Findings for Approval. Prior to taking an action to approve or recommend approval of a development agreement, the Review Authority shall find as follows:

(1) The proposed development agreement conforms with the maps and policies of the General Plan or any applicable Specific Plan;

(2) The proposed development agreement complies with the requirements of California Government Code Sections 65865 through 65869.5;

(3) The proposed development agreement will not be detrimental or cause adverse effects to adjacent property owners, residents, or the general public; and

(4) The proposed development agreement provides benefit to the City.

(H) Ongoing Review. The City shall review the development agreement every 12 months from the date the agreement is entered into as follows:

(1) The Director shall begin the review proceedings by giving notice to the property owner that the City intends to undertake a periodic review of the development agreement. The Director shall give the notice at least 30 days before the date when the matter shall be considered by the Council.

(2) The City Council shall receive the Director’s report at a regularly scheduled City Council meeting. A public hearing may be held but is not required. At the meeting, the property owner shall demonstrate good faith compliance with the terms of the agreement. The burden of proof on this issue is upon the property owner. If a public hearing is held, notice of the hearing shall be given pursuant to PMC § 17.20.020 (Notification procedures).

(3) The City Council shall determine whether or not the property owner has, for the period under review, complied in good faith with the terms and conditions of the agreement.

(4) If the City Council finds and determines that the property owner has complied in good faith with the terms and conditions of the agreement during the period under review, the review for that period is concluded. If the City Council finds and determines that the property owner has not complied in good faith with the terms and conditions of the agreement during the period under review, the City Council shall order the property owner to cure the default within 60 days. If the property owner fails to do so, the City Council may modify or terminate the agreement.

(I) Amendments to Approved Development Agreements. Any amendment to a previously approved development agreement shall be reviewed pursuant to the same procedures outlined in this Section for a new application. (Ord. 1603 § 4 (Exh. I), 2023)

17.25.020 Density bonus agreements.

(A) Purpose. This Section provides procedures and requirements for the consideration of density bonus agreements for the purposes specified in, and as authorized by, Section 65915 et seq. of the California Government Code.

(B) Applicability. A density bonus agreement may only be requested for development projects consisting of five or more dwelling units, prior to any density increase.

(D) Application Procedure.

(1) Only a qualified applicant may file an application for a density bonus agreement. For the purpose of this Section, a qualified applicant is a person who has a legal or equitable interest in the real property that is the subject of the density bonus agreement, or an authorized agent of a person who has a legal or equitable interest. The Director may require an applicant to submit a title report or other evidence satisfactory to the Director to verify the applicant’s interest in the real property and the authority of the agent to act on behalf of the applicant.

(2) An application for a density bonus agreement shall be made on a form provided for that purpose by the Department, along with the required fee and/or deposit established by City Council resolution.

(3) Where a density bonus request does not involve an existing development, the application for a density bonus agreement shall be filed concurrently with all other development application(s) for the project.

(4) The applicant shall provide financial data as determined by the Director showing that any requested concession and/or waiver is necessary to make the affordable units economically feasible.

(5) The application shall be accompanied by the appropriate number of draft density bonus agreements as listed on the application. The agreement shall be in a form acceptable to the City Attorney and may include the following provisions as well as any other deemed necessary by the City during review of specific proposals:

(a) The terms and conditions of the agreement shall run with the land which is to be developed, shall be binding upon any or all successor in interest of the applicant, and shall be recorded in the Office of the Los Angeles County Recorder, prior to issuance of any building permits for the project;

(b) The applicant shall give the City the continuing right-of-first-refusal to purchase or lease any or all of the designated units at the fair market value;

(c) The deeds to the designated units shall contain a covenant stating that the applicant or their successor in interest shall not sell, rent, lease, sublet, assign, or otherwise transfer any interests for same without the written approval of the City confirming that the sales price of the units is consistent with the limits established for very low, low- and/or moderate-income households, which shall be related to the Consumer Price Index; and

(d) The City shall have the authority to enter into other agreements with the applicant or purchasers of the dwelling units, as may be necessary to assure that the required dwelling units are continuously occupied by eligible households.

(6) A density bonus agreement application shall be reviewed and approved by the City Council. However, if the applicant is requesting more concessions than are allowed by right as established in Section 65915 et seq. of the California Government Code, the density bonus agreement shall be reviewed by the Planning Commission with a recommendation to the City Council.

(7) The Director may require additional information if deemed necessary to determine whether the density bonus agreement is consistent with the goals, policies and objectives of the General Plan and any applicable Specific Plan. This may include, but is not limited to, a market feasibility/absorption study for the proposed project.

(E) Action by Planning Commission.

(1) As described in Subsection (D)(6) of this Section, the Planning Commission shall hold a public hearing on an application for a density bonus agreement if the applicant is requesting more concessions than are allowed by right as established in the tables provided in this Section. The hearing shall be scheduled and notice given as prescribed in PMC § 17.20.020 (Notification procedures).

(2) The Planning Commission shall determine whether the density bonus agreement is consistent with the required findings for approval as set forth in Subsection (G) of this Section, and shall recommend to the City Council that the density bonus agreement be approved, approved as amended, or denied.

(F) Action by City Council.

(1) Upon receiving a recommendation from the Planning Commission on a proposed density bonus agreement, the City Council shall hold a public hearing. The hearing shall be scheduled and notice given as prescribed in PMC § 17.20.020 (Notification procedures).

(2) Following the closing of a public hearing, the City Council shall determine if the density bonus agreement is consistent with the findings contained within Subsection (G) of this Section. If determined to be consistent, the City Council shall adopt the development agreement by resolution.

(G) Required Findings for Approval. Prior to taking an action to approve or recommend approval of a density bonus agreement, the Review Authority shall find as follows:

(1) The proposed density bonus agreement is consistent with the maps and policies of the General Plan and any applicable Specific Plan; and

(2) The proposed density bonus agreement complies with the requirements of California Government Code Section 65915 et seq.

(H) Ongoing Review. The Director shall review and examine all approved density bonus agreements at least every 12 months to determine whether the applicant or a successor in interest is demonstrating good faith compliance with the terms of the agreement.

(I) Amendments to Approved Density Bonus Agreements. Any amendment to a previously approved density bonus agreement shall be reviewed pursuant to the same procedures outlined in this Title for a new application.

(J) Incentives and Concessions.

(1) Applicants for density bonuses may, in addition to the density bonus, request the number of incentives or concessions established in Section 65915(d)(2) of the California Government Code.

(2) The City shall grant the concession or incentive requested by the applicant pursuant to Subsection (D)(6) of this Section, unless it makes a written finding, based upon substantial evidence, of either of the following:

(a) The concession or incentive does not result in identifiable cost reductions for affordable housing costs or for rents for the targeted units as defined within PMC Chapter 17.16 (Definitions); or

(b) The concession or incentive would have a specific adverse impact upon public health and safety or the physical environment or on any real property that is listed in the California Register of Historical Resources for which there is no feasible method to mitigate or avoid without rendering the development unaffordable to low-income and moderate-income households.

(3) The granting of a density bonus, concession, or incentive shall not be interpreted, in and of itself, to require a General Plan amendment, zone change, variance, or other discretionary approval. (Ord. 1603 § 4 (Exh. I), 2023)