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Home My WebLink About14 ORDINANCE NO. 1372 (CODE AMENDMENT 09-006) 01-19-10Agenda Item 14 Reviewed: AGENDA REPORT City Manager Finance Director N/A MEETING DATE: JANUARY 19, 2010 TO: WILLIAM A. HUSTON, CITY MANAGER FROM: OFFICE OF THE CITY CLERK SUBJECT: ORDINANCE NO. 1372 (CODE AMENDMENT 09-006), AMENDING SECTION 9111 THROUGH 9142 OF THE TUSTIN CITY CODE TO UPDATE DENSITY BONUS LAW IN ACCORDANCE WITH STATE LAW SUMMARY: Assembly Bill 2280 ("AB 2280") made the following changes to the State's density bonus law, which is set forth in Government Code Section 65915: 1. Increased the time by which a city may utilize funds that are recaptured from the resale of affordable housing units; 2. Amended the definition of "development standards"; 3. Amended the definition of "maximum allowable residential density" to be based not only on zoning, but also on the general plan land use densities in certain cases; 4. Added clarifying language with respect to density bonuses for developments with senior housing units; 5. Provided that before a local agency may grant density bonuses in excess of those set forth in State law, it must first adopt a local ordinance enabling it to do so. Code Amendment 09-006 amends Section 9111 through 9142 of the Tustin City Code to update density bonus law in accordance with State law. On December 8, 2009, the Planning Commission adopted Resolution No. 4128 recommending that the City Council adopts Ordinance No. 1372 approving Code Amendment 09-006. RECOMMENDATION: Have second reading by title only and adoption of Ordinance No. 1372 (roll call vote). FISCAL IMPACT: Ordinance No. 1372 is aCity-initiated project. There are no direct fiscal impacts anticipated as a result of adopting this ordinance. BACKGROUND: On January 5, 2010, the City Council had first reading by title only and introduction of the following Ordinance: ORDINANCE NO. 1372 (CODE AMENDMENT 09-006), AMENDING SECTION 9111 THROUGH 9142 OF THE TUSTIN CITY CODE TO UPDATE DENSITY BONUS LAW IN ACCORDANCE WITH STATE LAW. atricia Estrella City Clerk Services Supervisor ATTACHMENT: Ordinance No. 1372 ORDINANCE NO. 1372 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, AMENDING SECTION 9111 THROUGH 9142 (CODE AMENDMENT 09-006) OF THE TUSTIN CITY CODE TO UPDATE DENSITY BONUS LAW IN ACCORDANCE WITH STATE LAW The City Council of the City of Tustin does hereby ordain as follows: Section 1. Section 9112 of the Tustin City Code is hereby revised as follows: "Development Standards" ^,,,e~ includes a site or construction conditions including but not limited to, a height limitation, a setback requirement, or a parking ratio that apply to a residential development pursuant to any ordinance, general plan element, specific plan, or other local condition, law, policy, resolution, or regulation. "Density Bonus" means a density increase over the otherwise maximum allowable residential density, ~ ' .,., th., wYrl;cwn# °_~°_,.+~_ +,_, ,#°_„°ir,r ^ ~,_,,.,_. n 4" \ f ~+ h ~c'nly rl°v°Inmm~nf memo#'n^ #h° nri#nr'^ of Cor#inn Q12'L •a$ of the date of application by the applicant to the city. The applicant may elect to accept a lesser percentage of density bonus. The amount of density bonus to which the applicant is entitled shall vary according to the amount by which the percentage of affordable housing units exceeds the percentage established in Section 9121. "Maximum Allowable Residential Density" means the ^^~ ~^^i^^ ^-~°^^^^°, density allowed under the zoning ordinance and land use element of the general plan, or if a range of density is permitted, means the maximum allowable density for the specific zoning range and land use element of the general plan applicable to the protect. Where the density allowed under the zoning ordinance is inconsistent with the density allowed under the land use element of the general plan, the general plan density shall prevail with the exception of the MCAS Tustin Specific Plan; which exclud+a~es the density bonus allowed by this Chapter. Section 2. Section 9121(a)(3) of the Tustin City Code is hereby revised as follows: (3) Senior citizen housing development or mobile home park that limits residency based on age requirements for housing for older persons pursuant to Section 798.76 or 799.5 of the Civil Code. For housing developments meeting such criteria, the density bonus shall be 20 percent of the number of senior housing units; or Section 3. Section 9121(a)(6) of the Tustin City Code is hereby added as follows: (6) For the purposes of this section, "total units" or "total dwelling units" does not include units added by a density bonus awarded pursuant to this section or any local law granting a greater density bonus. Ordinance No. 1372 Page 2 Section 4. Section 9121(b) of the Tustin City Code is hereby revised as follows: (b) When an applicant for a tentative subdivision map, parcel map, or other residential development approval donates land to the City as provided for in this subsection, the City shall grant a density bonus, the amount of which shall be as specified in Section 9122. This increase shall be in addition to any increase in density mandated by subsection (a), into a maximum combined mandated density increase of thirty-five (35) percent if an applicant seeks both the increase required pursuant to this subsection and subsection (a). All density calculations resulting in fractional units shall be rounded up to the next whole number. Nothing in this subsection shall be construed to enlarge or diminish the authority of the City to require a developer to donate land as a condition of development. An applicant shall be eligible for the increased density bonus described in this subsection if all of the following conditions are met: (1) The applicant donates and transfers the land no later than the date of approval of the final subdivision map, parcel map, or residential development application. (2) The develepr~er~t 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 (10) percent of the number of residential units of the proposed development. (3) The transferred land is at least one (1) acre in size or of sufficient size to permit development of at least forty (40) units, has the appropriate general plan designation, is appropriately zoned at the density described in paragraph (3) of subdivision (c) of Government Code Section 65583.2 for development of affordable housing on land suitable for residential development, and is or will be served by adequate public facilities and infrastructure. The land shall have appropriate zoning and development standards to make the development of affordable units feasible. No later than the date of approval of the final subdivision map, parcel map, or of the residential development, the transferred land shall 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, except that the lesal--gevere+~t Ci~may subject the proposed development to subsequent design review to the extent authorized by subdivision (i) of Government Code Section 65583.2 if the design is not reviewed by the City prior to the time of transfer. (4) The transferred land and the affordable units shall be subject to a deed restriction ensuring continued affordability of the units consistent with subsections 9131 (d) and (e) which shall be recorded on the property at the time of dedication. (5) The land is transferred to the City or to a housing developer approved by the City. The City may require the applicant to identify and transfer the land to the developer. Ordinance No. 1372 Page 3 (6) The transferred land shall be within the boundary of the proposed development or, if the City agrees, within one-quarter (1/4) mile of the boundary of the proposed development. (7) A proposed source of funding for the very low income units shall be identified not later than the date of approval of the final subdivision map, parcel map, or residential development application. Section 5. Section 9123(a)(3) of the Tustin City Code is hereby added as follows: (3) The concession or incentive would be contrary to state of federal law. Section 6. Section 9123(c) of the Tustin City Code is hereby revised as follows: (c) Incentives or concessions may include the following: 1. A reduction of site development standards or a modification of zoning code requirements or architectural design requirements that exceed the minimum building standards approved by the Mate California Building Standards Commission as provided in Part 2.5 (commencing with Section 18901) of Division 13 of the Health and Safety Code, which result in identifiable, financially sufficient, and actual costs reductions, including but not limited to: a) Reduced minimum lot size. b) Reduced minimum setbacks. c) Reduced minimum street standards such as reduced minimum street width. d) Increased maximum lot coverage. e) Increased building height. f) Reduced ratio of vehicular parking spaces that would otherwise be required. 2. Approval of mixed use zoning in conjunction with the housing project if commercial, office, industrial, or other land uses will reduce the cost of the housing development and if the commercial, office, industrial, or other land uses are compatible with the housing project and the existing or planned development in the area, including the City's General Plan, where the proposed housing project will be located; or 3. Other regulatory incentives or concessions proposed by the applicant or the City that result in identifiable, financially sufficient, and actual cost reductions. 4. The granting of a concession or incentive shall not be interpreted, in and of itself, to require a general plan amendment, zoning change, or other discretionary approval. This provision is declaton/ of existing law. Section 7. Section 9124(a) of the Tustin City Code is hereby revised as follows: (a) An Applicant may submit to the City a proposal for the waiver or reduction of development standards and may request a meeting with the Ordinance No. 1372 Page 4 City. . A proposal for the waiver or reduction of development standards pursuant to this section shall neither reduce nor increase the number of incentives or concessions to which the applicant is entitled pursuant to Section 9123. Section 8. Section 9131 (d) of the Tustin City Code is hereby revised as follows: (d) An applicant shall agree to, and the City shall ensure, continued affordability of all low- and very low income units that qualified the applicant for the award of the density bonus for at least thirty (30) years or a longer period of time if required by the construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy program, ..Rents for the lower income density bonus ta~et units shall be set at an affordable rent as defined in Section 50053 of the Health and Safety Code. Owner- occupied units shall be available at an affordable housing cost as defined in Section 50052.5 of the Health and Safety Code. Section 9. Section 9131 (e) of the Tustin City Code is hereby revised as follows: (e) An applicant shall agree to, and the City shall ensure that, the initial occupant of the moderate-income units that are directly related to the receipt of the density bonus in the common interest development, as defined in Section 1351 of the Civil Code, are persons and families of moderate income as defined in Section 50093 of the Health and Safety Code, and that the units are offered at an affordable housing cost, as that cost is defined in Section 50052.5 of the Health and Safety Code. The City shall enforce an equity-sharing agreement, unless it is in conflict with the requirements of another public funding source or law. The following apply to the equity-sharing agreement: (1) Upon resale, the seller of the unit shall retain the value of any improvements, the down payment, and the seller's proportionate share of appreciation. The local government shall recapture any initial subsidy and its proportionate share of appreciation, which shall then be used within }hr~ five 5 years for any of the purposes described in subdivision (e) of Section 33334.2 of the Health and Safety Code that promote homeownership. (2) For purposes of this subsection, the lesa~gever~ner~s City's initial subsidy shall be equal to the fair market value of the home at the time of initial sale minus the initial sale price to the moderate-income household, plus the amount of any down payment assistance or mortgage assistance. If upon resale the market value is lower than the initial market value, then the value at the time of the resale shall be used as the initial market value. (3) For purposes of this subdivision, the City's proportionate share of appreciation shall be equal to the ratio of the initial subsidy to the fair market value of the home at the time of initial sale. Ordinance No. 1372 Page 5 PASSED AND ADOPTED, at a regular meeting of the City Council for the City of Tustin on this 19th day of January, 2010. JERRY AMANTE MAYOR PAMELA STOKER CITY CLERK STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss CITY OF TUSTIN ) ORDINANCE NO. 1372 PAMELA STOKER, City Clerk and ex-officio Clerk of the City Council of the City of Tustin, California, does hereby certify that the whole number of the members of the City Council of the City of Tustin is five; that the above and foregoing Ordinance No. 1372 was duly and regularly introduced and read at the regular meeting of the City Council held on the 5`h day of January, 2010, and was given its second reading, passed and adopted at a regular meeting of the City Council held on the 19th day of January, 2010, by the following vote: COUNCILPERSONS AYES: COUNCILPERSONS NOES: COUNCILPERSONS ABSTAINED: COUNCILPERSONS ABSENT: PAMELA STOKER City Clerk Published: