Chapter 18.88
DENSITY BONUS AND AFFORDABLE HOUSING INCENTIVES
Sections:
18.88.030 Calculation of density bonus and number of incentives and concessions.
18.88.050 Child-care facilities.
18.88.060 Condominium conversions.
18.88.070 Affordability and development standards.
18.88.080 Development standards modified as incentive or concession.
18.88.090 Application requirements and review.
18.88.100 Density bonus housing agreement.
18.88.010 Purpose.
In accordance with Sections 65915, 65915.5, and 65917 of the California Government Code, this chapter is intended to provide incentives for the production of housing for very low-income, low-income, and senior households and for the production of housing for moderate-income households residing in condominium and planned development projects. In enacting this chapter, it is also the intent of the city of Patterson to facilitate the development of affordable housing and to implement the goals, objectives, and policies of the city’s housing element. (Ord. 738 § 1 (Exh. A) (part), 2013).
18.88.020 Applicability.
The provisions of this chapter apply to residential developments seeking a density bonus, which would allow maximum residential density limits established for the applicable zoning district to be exceeded. (Ord. 738 § 1 (Exh. A) (part), 2013).
18.88.030 Calculation of density bonus and number of incentives and concessions.
A. Subject to the findings included in Section 18.88.090(C), the city shall grant a density bonus to a developer of a housing development who seeks a density bonus and agrees to construct at least one of the following:
1. Ten percent of the total units of the housing development as target units affordable to low-income households; or
2. Five percent of the total units of the housing development as target units affordable to very low-income households; or
3. A senior citizen housing development; or
4. Ten percent of the total units of a newly constructed condominium project or planned development as target units affordable to moderate-income households.
B. In determining the number of density bonus units to be granted pursuant to subsection A of this section, the maximum residential density for the site shall be multiplied by 0.20 for subsections (A)(1), (A)(2), and (A)(3) of this section and 0.05 for subsection (A)(4) of this section, unless a lesser number is selected by the developer.
1. For each one 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.
2. 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.
3. 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.
When calculating the number of permitted density bonus units, any calculations resulting in fractional units shall be rounded to the next larger whole number.
C. The density bonus units shall not be included when determining the number of target units required to qualify for a density bonus. When calculating the required number of target units, any calculations resulting in fractional units shall be rounded to the next larger whole number.
D. The developer may request a lesser density bonus than the project is entitled to, but no reduction will be permitted in the number of required target units pursuant to subsection A of this section. Regardless of the number of target units, no housing development may be entitled to a density bonus of more than thirty-five percent.
E. Subject to the findings included in Section 18.88.090(C), when a developer seeks a density bonus, the city shall grant incentives or concessions listed in Section 18.88.080 as follows:
1. 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.
2. 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.
3. 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.
F. Each housing development is entitled to only one density bonus, which may be selected based on the percentage of either very low-income target units, low-income target units, or moderate-income target units, or the project’s status as a senior citizen housing development. Density bonuses from more than one category may not be combined.
G. In accordance with state law, neither the granting of a concession or incentive nor the granting of a density bonus shall be interpreted, in and of itself, to require a general plan amendment, zoning change, or other discretionary approval.
H. The following tables summarize this information:
|
Target Group |
Minimum % Target Units |
Bonus Granted |
Additional Bonus for Each 1% Increase in Target Units |
% Target Units Required for Maximum 35% Bonus |
|---|---|---|---|---|
|
Very low income |
5% |
20% |
2.5% |
11% |
|
Low income |
10% |
20% |
1.5% |
20% |
|
Moderate income (Condo or PD only) |
10% |
5% |
1% |
40% |
|
Senior citizen housing development |
100% |
20% |
— |
— |
|
Target Group |
Target Units |
||
|---|---|---|---|
|
Very low income |
5% |
10% |
15% |
|
Low income |
10% |
20% |
30% |
|
Moderate income (condo or PD only) |
10% |
20% |
30% |
|
Maximum incentive(s)/concession(s) |
1 |
2 |
3 |
Note: A concession or incentive may be requested only if an application is also made for a density bonus, except for child-care facilities pursuant to Section 18.88.050.
(Ord. 738 § 1 (Exh. A) (part), 2013).
18.88.040 Land donation.
A. When a developer of a housing development donates land to the city as provided for in this section, the developer shall be entitled to a fifteen percent increase above the otherwise maximum allowable residential density under the applicable zoning ordinance and land use element of the general plan for the entire development. For each one percent increase above the minimum ten percent land donation described in subsection (B)(2) of this section, the density bonus shall be increased by one percent, up to a maximum of thirty-five percent. This increase shall be in addition to any increase in density allowed by Section 18.88.030(B), up to a maximum combined density bonus of thirty-five percent if a developer seeks both the increase required pursuant to this section and Section 18.88.030. When calculating the number of permitted density bonus units, any calculations resulting in fractional units shall be rounded to the next larger whole number.
B. A housing development shall be eligible for the density bonus described in this section if the city makes all of the following findings:
1. The developer will donate and transfer the land no later than the date of approval of the final subdivision map, parcel map, or development application for the housing development.
2. The developable acreage and zoning classification of the land being transferred are sufficient to permit construction of units affordable to very low-income households in an amount not less than ten percent of the number of residential units of the proposed development, or will permit construction of a greater percentage of units if proposed by the developer.
3. The transferred land is at least one acre in size or of sufficient size to permit development of at least forty units, has the appropriate general plan designation, is appropriately zoned for development as very low-income housing, and is now or at the time of construction will be served by adequate public facilities and infrastructure. The land also has the appropriate zoning and development standards to make the development of the very low-income units feasible. No later than the date of approval of the final subdivision map, parcel map, or development application for the housing development, the transferred land will have all of the permits and approvals, other than building permits, necessary for the development of the very low-income housing units on the transferred land.
4. The transferred land and the very low-income units constructed on the land will be subject to a deed restriction ensuring continued affordability of the units consistent with this chapter, which restriction will be recorded on the property at the time of dedication.
5. The land will be transferred to the city, or to a housing developer approved by the city. The city reserves the right to require the developer to identify a developer of the very low-income units and to require that the land be transferred to that developer.
6. The transferred land is within the boundary of the proposed housing development. The transferred land may be located within one-quarter mile of the boundary of the proposed housing development; provided, that the city makes all of the findings included in this section. (Ord. 738 § 1 (Exh. A) (part), 2013).
18.88.050 Child-care facilities.
A. When a developer proposes to construct a housing development that includes target units as specified in Section 18.88.030 and includes a child-care facility that will be located on the premises of, as part of, or adjacent to the housing development, the city shall grant either of the following if requested by the developer:
1. An additional density bonus that is an amount of square feet of residential space that is equal to or greater than the amount of square feet in the child-care facility.
2. An additional concession or incentive that contributes significantly to the economic feasibility of the construction of the child-care facility.
B. A housing development shall be eligible for the density bonus or concession described in this section if the city makes all of the following findings:
1. The child-care facility will 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 pursuant to Section 18.88.070.
2. Of the children who attend the child-care facility, the percentage of children of very low-income households, low-income households, or moderate-income households shall be equal to or greater than the percentage of dwelling units that are proposed to be affordable to very low-income households, low-income households, or moderate-income households.
C. Notwithstanding any requirement of this section, the city shall not be required to provide a density bonus or concession for a child-care facility if it finds, based upon substantial evidence, that the community already has adequate child-care facilities. (Ord. 738 § 1 (Exh. A) (part), 2013).
18.88.060 Condominium conversions.
A. The city shall grant either a density bonus or other incentives of equivalent financial value if the applicant for a conversion of existing rental apartments to condominiums agrees to provide thirty-three percent of the total units of the proposed condominium project as target units affordable to low- or moderate-income households, or to provide fifteen percent of the total units in the condominium conversion project as target units affordable to low-income households. All such target units shall remain affordable for the period specified in Section 18.88.070.
B. For purposes of this section, a density bonus means an increase in units of twenty-five percent over the number of apartments to be provided within the existing structure or structures proposed for conversion.
C. No condominium conversion shall be eligible for a density bonus if the apartments proposed for conversion constitute a housing development for which a density bonus or other incentives were previously provided pursuant to this chapter or California Government Code Section 65915. (Ord. 738 § 1 (Exh. A) (part), 2013).
18.88.070 Affordability and development standards.
A. Target units shall be constructed concurrently with nonrestricted units or pursuant to a schedule included in the density bonus housing agreement.
B. Target units offered for rent to low-income and very low-income households shall be made available for rent at an affordable rent and shall remain restricted and affordable to the designated income group for a minimum period of thirty years. A longer period of time may be specified if required by any construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy program applicable to the housing development. Target rental units will not meet the requirements for rental inclusionary units contained in Section 18.88.030 unless they remain restricted and affordable for ninety-nine years pursuant to Section 18.88.100.
C. Target units offered for sale to very low-, low-, or moderate-income households in condominiums and planned developments shall be sold at an affordable ownership cost. The maximum resale price shall be the lower of: (1) fair market value; or (2) the seller’s initial purchase price, increased by the lesser of: (a) the rate of increase of area median income during the seller’s ownership, or (b) the rate at which the consumer price index increased during the seller’s ownership. The seller of the unit shall retain the market value at the time of sale of any capital improvements made by the seller, the down payment, and the seller’s proportionate share of appreciation. Because this subsection limits the seller’s appreciation, the seller’s proportionate share of appreciation is one hundred percent.
D. Target units shall be built on site, unless off-site construction is approved in the city’s discretion generally pursuant to Section 18.86.050(A) and shall be dispersed within the housing development. 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 standards, except those which may be modified as provided by this chapter.
E. Upon the request of the developer, the city shall not require a vehicular parking ratio, inclusive of handicapped and guest parking, of a development meeting the criteria of Section 18.88.030 that exceeds the following ratios:
1. Zero to one bedrooms: one on-site parking space.
2. Two to three bedrooms: two on-site parking spaces.
3. 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 section, a development may provide on-site parking through tandem parking or uncovered parking, but not through on-street parking. (Ord. 738 § 1 (Exh. A) (part), 2013).
18.88.080 Development standards modified as incentive or concession.
A. Incentives or concessions that may be requested pursuant to Section 18.88.030 may include the following:
1. A reduction of site development standards or a modification of zoning code requirements or architectural design requirements which exceed the minimum building standards provided in Part 2.5 (commencing with Section 18901) of Division 13 of the California Health and Safety Code and which result in identifiable, financially sufficient, and actual cost reductions, including, but not limited to:
a. Reduced minimum lot sizes and/or dimensions;
b. Reduced minimum lot setbacks;
c. Reduced minimum outdoor and/or private outdoor living area;
d. Increased maximum lot coverage;
e. Increased maximum building height and/or stories;
f. Reduced minimum building separation requirements;
g. Reduced street standards, such as reduced minimum street widths.
2. Approval of mixed-use zoning in conjunction with the housing development if nonresidential land uses will reduce the cost of the housing development and if the city finds that the proposed nonresidential uses are compatible with the housing development and with existing or planned development in the area where the proposed housing development will be located.
3. Incentives for inclusionary units listed in Section 18.88.030.
4. Modifications of those development standards included in subsection (A)(1) of this section.
5. Off-site construction of target units; provided, that the city makes all of the findings included in Section 18.86.050(A) (Alternative Equivalency Proposals).
6. Deferred development impact fees (e.g., capital facilities, parkland in lieu, park facilities, fire, or traffic impact fees).
7. Other regulatory incentives or concessions proposed by the developer or the city which result in identifiable, financially sufficient, and actual cost reductions.
B. Developers may seek a waiver or modification of development standards that will have the effect of precluding the construction of a housing development meeting the criteria of Section 18.88.030 at the densities or with the concessions or incentives permitted by this chapter. The developer shall show that the waiver or modification is necessary to make the housing units economically feasible. (Ord. 738 § 1 (Exh. A) (part), 2013).
18.88.090 Application requirements and review.
A. An application for a density bonus, incentive, concession, waiver, modification, or revised parking standard pursuant to this chapter shall be submitted with the first application for approval of a housing development and processed concurrently with all other applications required for the housing development. The application shall be submitted on a form prescribed by the city and shall include at least the following information:
1. Site plan showing total number of units, number and location of target units, and number and location of proposed density bonus units.
2. Level of affordability of target units and proposals for ensuring affordability.
3. Description of any requested incentives, concessions, waivers or modifications of development standards, or modified parking standards. For all incentives and concessions except mixed-use development, the application shall include evidence that the requested incentives and concessions result in identifiable, financially sufficient, and actual cost reductions. For waivers or modifications of development standards, the application shall show that the waiver or modification is necessary to make the housing units economically feasible and that the development standards will have the effect of precluding the construction of a housing development meeting the criteria of Section 18.88.030 at the densities or with the concessions or incentives permitted by this chapter.
4. If a density bonus or concession is requested for a land donation, the application shall show the location of the land to be dedicated and provide evidence that each of the findings included in Section 18.88.040(B) can be made.
5. If a density bonus or concession is requested for a child-care facility, the application shall show the location and square footage of the child-care facilities and provide evidence that each of the findings included in Section 18.88.050(B) can be made.
B. An application for a density bonus, incentive, concession, waiver, modification, or revised parking standard pursuant to this chapter shall be considered by and acted upon by the approval body with authority to approve the housing development. Any decision regarding a density bonus, incentive, concession, waiver, modification, or revised parking standard may be appealed to the planning commission and from the planning commission to the city council. In accordance with state law, neither the granting of a concession, incentive, waiver, or modification nor the granting of a density bonus shall be interpreted, in and of itself, to require a general plan amendment, zoning change, variance, or other discretionary approval.
C. Before approving an application for a density bonus, incentive, concession, waiver, or modification, the approval body shall make the following findings:
1. If the density bonus is based all or in part on donation of land, the findings included in Section 18.88.040(B).
2. If the density bonus, incentive, or concession is based all or in part on the inclusion of a child-care facility, the findings included in Section 18.88.050(B).
3. If the incentive or concession includes mixed-use development, the finding included in Section 18.88.080(A)(2), the developer has shown that the waiver or modification is necessary to make the housing units economically feasible.
D. If a request for a concession or incentive is otherwise consistent with this chapter, the approval body may deny a concession or incentive if it makes a written finding, based upon substantial evidence, of either of the following:
1. The concession or incentive is not required to provide for affordable rents or affordable ownership costs.
2. The concession or incentive would have a specific adverse impact upon public health or safety or the physical environment or on any real property that is listed in the California Register of Historical Resources, and 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. For the purpose of this subsection, “specific adverse impact” means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified, written public health or safety standards, policies, or conditions as they existed on the date that the application was deemed complete.
E. If a request for a waiver or modification is otherwise consistent with this chapter, the approval body may deny a concession or incentive only if it makes a written finding, based upon substantial evidence, of either of the following:
1. The waiver or modification would have a specific adverse impact upon health, safety, or the physical environment, and 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. For the purpose of this subsection, “specific adverse impact” means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified, written public health or safety standards, policies, or conditions as they existed on the date that the application was deemed complete.
2. The waiver or modification would have an adverse impact on any real property that is listed in the California Register of Historical Resources.
F. If a density bonus or concession is based on the provision of child-care facilities, the approval body may deny the bonus or concession if it finds, based on substantial evidence, that the city already has adequate child-care facilities. (Ord. 738 § 1 (Exh. A) (part), 2013).
18.88.100 Density bonus housing agreement.
A. Developers requesting a density bonus shall agree to enter into a density bonus housing agreement with the city. A density bonus housing agreement shall be made a condition of the discretionary planning permits for all housing developments pursuant to this chapter and shall be recorded as a restriction on any parcels on which the target units or density bonus units will be constructed.
B. The density bonus housing agreement shall be recorded prior to final or parcel map approval, or, where the housing development does not include a map, prior to issuance of a building permit for any structure in the housing development. The density bonus housing agreement shall run with the land and bind on all future owners and successors in interest.
C. The density bonus housing agreement shall include, but not be limited to, the following:
1. The total number of units approved for the housing development, the number, location, and level of affordability of target units, and the number of density bonus units.
2. Standards for determining affordable rent or affordable ownership cost for the target units.
3. The location, unit size in square feet, and number of bedrooms of target units.
4. Provisions to ensure affordability in accordance with Section 18.88.070(B) and (C).
5. A schedule for completion and occupancy of target units in relation to construction of nonrestricted units.
6. A description of any incentives, concessions, waivers, or reductions being provided by the city.
7. A description of remedies for breach of the agreement by either party. The city may identify tenants or qualified purchasers as third-party beneficiaries under the agreement.
8. Procedures for qualifying tenants and prospective purchasers of target units.
9. Other provisions to ensure implementation and compliance with this chapter.
D. In the case of for-sale housing developments, the density bonus housing agreement shall include the following conditions governing the sale and use of target units during the applicable use restriction period:
1. Target units shall be owner-occupied by eligible very low-, low-, or moderate-income households, or by qualified residents in the case of senior citizen housing developments.
2. The purchaser of each target unit shall execute an instrument approved by the city and to be recorded against the parcel including such provisions as the city may require to ensure continued compliance with this chapter.
E. In the case of rental housing developments, the density bonus housing agreement shall provide for the following:
1. Procedures for establishing affordable rent, filling vacancies, and maintaining target units for eligible tenants.
2. Provisions requiring verification of household incomes.
3. Provisions requiring maintenance of records to demonstrate compliance with this subsection.
F. Density bonus housing agreements for land dedication and child-care facilities shall ensure continued compliance with all conditions included in Sections 18.88.040 and 18.88.050, respectively. (Ord. 738 § 1 (Exh. A) (part), 2013).