Loading...
HomeMy WebLinkAbout03 DENSITY BONUS 11-01-99DATE' NOVEMBER 1, 1999 TO: FROM: SUBJECT: WILLIAM A. HUSTON, CITY MANAGER COMMUNITY DEVELOPMENT DEPARTMENT DENSITY BONUS ORDINANCE I SUMM/21Y:: Ordinance No,: 1222 would I.... : ~ ~.~:: ~, ~:,~:-~ ~ ~:~!:: ".'. :~ ~ :'~:~ ~ :--:~ ~-'"~ ;~:~::' ~- ~'~S~.?~'~ ~:~'i~::~t~~::-~ ?'~`~,'' .~7:~ ~?~.~i- ~ .~:~ ........ ~:. .... ,:' ~--~-. - d~e!opment ofaffordabl~ housing as required by the,~State Z~ 9~S~*~; 2~,1999 RECOMMENDATION That the City Council adopt: , Resolution No. 99-86 approving the Final Negative Declaration as adequate for the adoption of Ordinance No. 1222 as required by the Califomia Environmental QualitY Act. 2. Ordinance No. 1222 approving incentives for the production of affordable housing in accordance with State Law. FISCAL IMPACT Costs associated with implementation and administration of the requirements of the ordinance and guidelines would be recovered through applicant fees identified in the general Fee Schedule in Resolution No. 99-53 adopted on July 19, 1999. BACKGROUND The City received an application from a developer who proposes to construct a senior citizen apartment complex and has requested that the City grant a "density bonus'', or more units than would otherwise be allowed by the Zoning Code and General Plan. The "Density Bonus" program is a State mandated program that requires cities grant at least 25 percent density bonus when a developer agrees to set aside units for affordable housing or senior housing. Currently, the City does not have a density bonus ordinance. Density Bonus November 1, 1999 Page 2 The purpose of the State Planning and Zoning Law (Government Code Section 65915) related to density bonus is to offer a land use based option to increase the economic feasibility of affordable housing development. The law was amended in 1989 requiring that all local governments adopt implementing ordinances and establish procedures for processing such proposals. Prior to 1989, implementing ordinances were voluntary. In 1988, the City brought this subject to the City Council. At that time, the City Cou_ncil voted not to adopt the ordinance since no formal proposal was pending. Although the State does not designate any agency to enforce the adoption of the density bonus statute, the statute is subject to judicial enforcement pursuant to litigation initiated by an applicant or interested party~ In addition, density bonus implementation efforts are subject to review and comment by the State Department of Housing and Community Development as part of the Housing Element update currently underway. The Planning Commission at a regular meeting on September 27, 1999 recommended that the City Council adopt the Final Negative Declaration and Ordinance No. 1222 (See Attachment A - Planning Commission Minutes of September 27, 1999). DISCUSSION As required by State law, the proposed Density Bonus Ordinance includes mechanisms to facilitate the production of housing for lower, very. !ow-income and senior households. The proposed ordinance also implements the goals, objectives, and policies of the City of Tustin's Housing Element Which state: · Policy 1.2' · Policy 1.9: · Policy 1.12: "Provide for new affordable housing opportunities through acquisition and rehabilitation." "Encourage the availability of affordable housing for large, Iow income family." "Encourage incentives to assist in the development of affordable housing such as: 1) reducing permit processing time and waiving or reducing applicable permit fees; 2) on-site density bonuses when appropriate; 3) tax-exempt financing; 4) flexibility in zoning or development standards." Proposed Density Bonus Ordinance Section 9121 of the proposed ordinance (Attachment C - Ordinance No. 1222) would provide for at least a 25 percent density bonus and at least one !,Concession" or "Incentive" or provide other "Incentives of Equivalent Value" when a developer agrees to provide the following number of rental or for-sale "target units": (1) (2) (3) At least 20 percent of the total units affordable to Lower Income Households; or At least 10 percent of the total units affordable to Very Low Income Households; or 50 percent of the total units for Senior Citizen housing. Density Bonus November 1, 1999 Page 3 In the case of Condominium Conversion projects, the proposed ordinance would provide for at least 25 percent density bonus or other "Incentives of Equivalent Value" when a developer agrees to provide: (2) (3) At least 33 percent of the total units affordable to persons and families of Low or Moderate Income; or At least 15 percent of the total units affordable to Lower Inc(~me households; and Agrees to pay for the administrative costs incurred by the City. A "density bonus" would be defined as an increase of at least 25 percent in the maximum residential density allowed by the Zoning Code.. A "Concession" or "Incentive" would include, but be not limited to, any of the following: Density bonus of more than 25 percent; The reduction of development standards; A modification of zoning code or architectural design requirements; AllOwing non-residential uses within the development; Allowing the development in a non-residential zone; Waived or. deferred development fees; and/or, Direct financial aid. .. "Incentives of Equal Value" would be defined as incentives approved by the City Council based on the land cost per dwelling unit of development. The value is the difference in the cost of the land with and without the density bonus. Applicants or developers receiving density bonuses and additional incentives would be required to enter into a Housing Incentive Agreement with the City in accordance with Section 9142 of the proposed ordinance. The agreement would ensure that the housing development project complies with the following: · · · · · · · Number of approved units and target units; Description of the target household income group; Standards for determining affordable rent or affordable sales price; Location, unit sizes, and number of bedrooms or target units; Affordability restrictions for target units; Schedule for completion and occupancy; Description of the concession or incentives or other. Incentive of Equivalent being provided by the City; and, A description of remedies for breach of agreement. Case Study for Density Bonus Project To illustrate how the ordinance could be applied, the following case study had been created: Density Bonus November 1, 1999 page 4 A developer wishes to construct a rental apartment complex on a 1.5-acre site that is zoned R-3 and designated by the General Plan as "High Density Residential". The Zoning Code would provide for the development of a maximum of 25 units per acre, or a total of 38 units. · Land Use Designation: High Density Residenti_al · Zoning Designation' R-3 · Permitted Density: 25 du/acre · Property Size' 1.5 acres · Maximum Units at Permitted Density (25 units/acre x 1.5 acres): 38 units The developer requests that the City grant a density bonus with the agreement that some units would be set aside as affordable housing or "target units". The following describes the method to determine the number of units allowed with a 25 percent density bonus and the number of target units required to be set aside at affordable rents: Total Number of Units with a Density Bonus (38 units x 25% density bonus = 47.5 units) 48 units Affordable Units to Target Households [38* units x 20% (lower income units) = 7.6] 8 units *Density bonus units not included in calculating '~arget units". With a 25 percent density bonus, the applicant would be allowed to build a maximum of 48 units of which 40 units could be rented at market rate and 8 units at affordable rents. An affordable rent for Lower Income households is defined as monthly housing expenses, including an allowance for utilities, not to exceed 60 percent of the area median income for Orange County adjusted for household size, multiplied by 30 percent and divided by 12 (Section 9112). In addition, the developer could request and receive one or more incentives such as a reduction in development standards (i.e. number of required parking spaces, development fees waivers, or financial assistance). The developer would have to submit a development pro-forma which indicates substantial facts that the incentives are necessary to make the housing development economically feasible. However, the City Council could determine that. an additional concession or incentive was not required to provide for affordable housing (Section 9121 .a) and decline a request for concessions or incentives. To implement the density bonus and incentive(s), the developer would be required to enter into a Housing Incentive Agreement with the City. Standard development requirements would include: Target and non-target units would be constructed concurrently unless otherwise provided for in the agreement; Density Bonus November 1, 1999 Page .5 When a density bonus and incentive is granted, rental and for-sale target units would remain affordable for 30 years; When no incentive is granted, rental and for-sale target units would remain affordable for 10 years; Target unit rents and sale prices would be determined by the definitions in the Density Bonus Ordinance unless otherwise overruled by applic_able governmental regulations; The design and appearance of target units would be compatible with non-target units; The development would comply with all requirements of the General Plan, Zoning Code, and applicable regulations unless otherwise exempted by the Housing Agreement; Target units would be dispersed throughout the development or could be constructed at an' alternative site if approved by the City Council. This agreement would be considered by the Planning Commission and a recommendation would be made to the City Council for final approval. Upon completion of the project, staff would continue to monitor the target units for compliance with the Housing Incentive Agreement. Environmental Review In accordance with the California Environmental Quality Act (CEQA), a Negative Declaration has been prepared for the adoption of this Ordinance (Exhibit A of Attachment B, Resolution 99-86). Based on the initial study, no significant impacts are anticipated in conjunction with the adoption of this ordinance. Associate Planner Elizabeth Binsack Director of Community Development Attachments: 'A - B~ Planning Commission Minutes of September 27, 1999 and Resolution No. 3693. Resolution No. 99-86 Ordinance No. 1222 S:\CDD\CCREPORT~density bonus 11-1-99.doc ATTACHMENT A Planning Commission Minutes of September 27, 1999 Resolution No. 3693 Planning Commission September 27, 1999 Page.6 .ates .... can reduce the building size from 2,700 square feet to 2,500 s wo~ allow the eight foot buffer along the residential. feet which enclosure Kozak noted that in the modifications, he wished ain where it is located. that the trash Commissioner access where the noted that there may be ing is located. Public Works' ability to Lois Bobak, Deputy City ~rney, noted that as destroying the fencing, then not be a probler Public Works has access without Hal Woods, architect, noted that an gate Jld be installed on either side. Commissioner Davert moved Pontious Resolution No. 3690 documentation for the project. g approval of ied 5-0. seconded, to adopt the environmental Commissioner Davert mov Resolution No. 3691 recom~ 006. Motion carried 5-0. g that the City Pontious seconded, to adopt luncil approve Zone Change. 98- Commissioner Daw Resolution No. follows: moved, Commissioner recommending approval of Design seconded, to adopt 98-036 amended as Condi ~ 2.9.10 be modified to include second sentence ;hall be provided to secure the drainage easement ~faction of the Public Works Director." wrought iron ect to the ion 5.8 be added to read: "The applicant shall work with the ~lic Works Department to address issues related to the drainage swale subject to the approval of the Public Works Director. Motion carried 5-0. . Draft Ordinance No. 1222 - Density Bonus Ordinance - This Density Bonus Ordinance is intended to provide incentives for the production of housing for very Iow, lower income or senior households in accordance with Sections 65915 and 65917 of the California Government Code. In enacting this ordinance, it is the intent of the City of Tustin to facilitate the development of affordable housing and to implement the goals, objectives and policies of the City's Housing Element. The Planning Commission may modify the proposed draft ordinance as a result of the public hearing. Planning Commission September 27, 1999 Page 7 RECOMMENDATION That the Planning Commission' . Adopt Resolution No. 3675 recommending that the City Co_uncil adopt the final Negative Declaration as required by the California Environmental Quality Act; and, . Adopt Resolution' No. 3693 recommending that the City Council adopt the proposed Density Bonus Ordinance. The Public Hearing opened at 8:12 p.m. Justina Willkom,.Associate Planner, presented the subject report. Commissioner Davert asked, in reference to the first page of the staff report, if "the department" is the Community Development Department or the State? Karen Peterson, Acting Senior Planner, stated that refei's to the State Department of Housing. Commissioner Davert asked if Policy 1.2 applies to both acquisition and rehabilitation. The Director stated that it wOuld provide for both but targets new construction because of the difficulty accomplishing that on a site that is currently developed. 'Commissioner Davert asked if the section "Proposed Density Bonus" applies strictly to new construction. The Director noted that it could be both new construction and rehabilitation. Commissioner Davert noted the asterisk states that the density bonus units are not included in calculating the target units in the example on Page 4 and asked if that is the way the State code reads? Staff affirmed that is the way the State code reads. The Director noted that a majority of the things in the Density Bonus Ordinance are mandated by State law and the City could provide additional incentives that are not identified under State law but staff wished to go with the minimum required. Lois Bobak, Deputy City Attorney, noted that all of the incentives are discretionary. Chairperson Kozak stated that his concerns were addressed by staff earlier today and noted that staff used a model ordinance from the State. Planning Commission September 27, 1999 Page 8 Jtes pending on the vacant site near the hospital. The Public Hearing closed at 8:22 p.m. Commissioner Kawashima asked for the location of the proposed project. The Director stated that without discussing the merits of the project, an application is Commissioner Davert moved, Commissioner Pontious seconded, to adopt Resolution No. 3675 recommending that the City Council adopt the final Negative Declaration as required by the California Environmental Quality Act. Motion carried 5-0. Commissioner Davert moved, Commissioner Pontious seconded, to adopt Resolution No. 3693 recommending that the City Council adopt the proposed Density Bonus Ordinance. Motion carried 5-0. ~SlNESS No Regular Business STAFF CONCERNS: 4. Report on Actions taken at the September 20, 1999 City Council Meetings Elizabeth A. Binsack, Director of Community Development reported on the subject agenda. COMMISSION CONCERNS: Commissioner Bell Noted that the fire hydrants in her neighborhood were rusty and asked who was responsible for maintaining fire hydrants in the city. The Director responded that the Orange County Fire Authority (OCFA) would be responsible for maintaining the fire hydrants and staff would report their deteriorating condition to the OCFA. Commissioner Davert Noted the presence of a pay phone and the proliferation of banners at the Red Hill Restaurant. ]0 ]2 ]5 ]6 ]7 ]8 20 23 24 2.7 RESOLUTION NO. 3693 · A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF TUSTIN RECOMMENDING THAT THE CITY COUNCIL ADOPT THE DENSITY BONUS ORDINANCE ADDING CHAPTER 1 TO ARTICLE 9 (LAND USE) OF THE TUSTIN CITY CODE. The Planning Commission of the City of Tustin does hereby resolve as follows: !. The Planning Commission finds and determines as follows: · Ao That it is necessary for the City to establish a policy to comply with the California Planning and Zoning Law (Govemment Code Section 65915 through 65918, Chapter 842), generally providing that if a developer of housing agrees to construct at least: . . o Twenty (20) percent of' the total units of housing development as Target Units affordable to Lower Income households; or Ten (10) percent of the total units of housing' development as Target Units affordable to Very Low income households; or Fifty (50) percent Senior citizen housing; then the City shall either grant a density bonus and at least one Concession or Incentive, unless the City Council makes a written finding that the additional concession or incentive is not required to provide for affordable housing, or provide other incentives of equivalent financial value. B. That said policy shall comply with Section 65915 of the Government Code by either granting a density bonus and a concession or incentive, providing other incentives of equivalent financial value or a combination thereof, whichever is deemed by the City Council to be appropriate. It shall be up to the discretion of the City Council as to whether a project will receive bonus units above 25 percent and/or any incentives of direct financial assistance or equivalent financial value shall as deemed reasonable and appropriate to the case, and may include but not be limited to: 1. Waived or deferred development fees. 2. Direct financial aid. 3. Subsidizing public improvements. ]0 14 l? 20 2! 24 2? ?-8 Resolution No. 3693 Page 2 II. C. Any additional incentives of non-monetary value shall be determined and stipulated by City Council upon recommendation by the Planning Commission as it deems reasonable and appropriate to the case, and may include but not be limited to: 1. The reduction of development standards, 2. A modification, of zoning code or architectural design requirements. 3. Allowing non-residential uses within the development. 4. Allow the development in a non-residentialzone. Do That the provision of bonus units shall not exempt a' project from complying with ali applicable development standards of the zoning district in which it is located, unless development standards are relaxed as additional incentives. E. That such development proposals shall be designed to be consistent with the character of the surrounding neighborhood and shall be processed in the manner described by the Density Bonus Ordinance. F. That provision of affordable housing units shall be assured through recordation of a Development Agreement as required by the Density Bonus Ordinance. O. That the proposed density bonus ordinance is consistent with the Tustin General Plan, Housing Element in that it provides for new affordable housing, encourage incentives to assist in . the development of affordable housing and encourage the availability of affordable housing for large Iow income family. Ho That a .Public Hearing was duly noticed, called and held on by the Planning Commission on September 27, 1999. That a Negative Declaration has been recommended for approval by the City Council in conformance with the requirements of the California Environmental Quality Act. The Planning Commission hereby recommends that the City Council adopt the Density Bonus Ordinance attached hereto as Exhibit A. ]0 ]4 ]7 20 23 2.4 26 27 Resolution No. 3693 Page 3 PASSED AND ADOPTED at a regular meeting of the Tustin Planning Commission, held on the 27th day of September, 1999. ELIZABETH A. BINSACK Planning Commission Secretary ~Oc hair_p, erson zak STATE OF CALIFORNIA) COUNTYOF ORANGE ) CITY OF TUSTIN ) I, ELIZABETH A. BINSACK, the undersigned, hereby certify that I am the Secretary of the Planning Commission of the City of Tustin, California; that Resolution No. 3693 was duly passed and adopted at a regular meeting of the Tustin Planning Commission, held on the 27th day of September, 1999. ELIZABETH A. BINSACK Planning Commission Secretary ATTACMENT B Resolution No. 99-86 l0 ]4 l? 20 24 25 27 28 RESOLUTION NO. 99-86 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, ADOPTING THE FINAL NEGATIVE DECLARATION AS ADEQUATE FOR THE ADOPTION OF ORDINANCE NO. 1222 RELATED TO HOUSING INCENTIVES AS REQUIRED BY THE CALIFORNIA ENVIRONMENTAL QUALITY ACT. The City Council of the City of Tustin does hereby resolve as follows: I. The City Council finds and determines as follows: Ao That the adoption of Ordinance No. 1222 is considered "pr;ojects" pursuant to the terms of the California Environmental Quality Act; and B. A Negative Declaration has been prepared for this ordinance and has been made available for public review between September 17, 1999 and October 7, 1999. C. Whereas, the Planning Commission of the City of Tustin has considered evidence presented by the Community Development Director and other interested parties with respect to the subject Negative Declaration, and on September 27, 1999 recommended that the City Council certify the Negative Declaration. Do The City Council of the City of Tustin has reviewed and considered the Final Negative Declaration and has determined that the Negative Declaration is adequate and complete. II. A Final Negative Declaration has been completed in compliance with CEQA and state guidelines. The City Council has received and considered the information contained in the Negative Declaration pdor to recommending approval of the proposed project, and found that it adequately discussed the environmental effects of the proposed ordinance. Further, the City Council finds the adoption of the Density Bonus Ordinance involves no potential for any adverse effects, whether individually or cumulatively, on wildlife resources; and, therefore, makes a De Minimis Impact finding related to the Califomia State Department' Fish and Game Code Section 711.4. PASSED AND ADOPTED at a regular meeting of the Tustin City Council, held on the l't day of November, 1999. TRACY WILLS WORLEY Mayor PAMELA STOKER City Clerk Exhibit A of Resolution No. 99-86 Initial Study & Negative Declaration COMMUNITY DEVELOPMENT DEPARTMENT 300 Centennial Way, Tustin, CA 92780 (714) 5 73-31 O0 INITIAL STUDY A. BACKGROUND Project Title: Lead Agency: Density Bonus Ordinance City of Tustin 300 Centennial Way Tustin, California 92780 Lead Agency Contact Person: Justina WillkOm Project Location: Citywide Project Sponsor's Name and Address: N/A General Plan Designation: Zoning Designation: Project Description: Residential land uses Residential Districts Surrounding Uses: Phone: (714) 573-3174 Adoption of a density bonus ordinance in accordance with the State Density Bonus Law (Government Code Section 65915) East: West: North: County of Orange South: City of Irvine Other public agencies whose approval is required: Orange County Fire Authority Orange County Health Care Agency SOuth Coast Air Quality Management District Other County of Orange and City of Irvine City of Santa Ana [-] City of Irvine [--] City of Santa Ana [~] Orange County EMA B. ENVIRONMENTAL FAC, _~S POTENTIALLY AFFECTEE The enviro.nmental factors checked below would be potentially affected by this project, involving at least one impact that is a "Potentially Significant Impact" as indicated by the checklist in Section D below. ['-]Land Use and Planning [--]Population and Housing [--~Geological Problems [-]Water [-'~Air Quality' [-]Transportation & Circulation [-]Biological Resources [--]Energy and Mineral Resources [-]Hazards [-]Noise [-']Public Services [-]Utilities and Service Systems [--]Aesthetics [--]Cultural Resources [-]Recreation [--]Mandatory Findings of Significance C. DETERMINATION: On the basis of this initial evaluation: I find that the proposed project COULD NOT have a significant effect on the envirOnment, and a NEGATIVE DECLARATION will be prepared. [-'-] I find that although the proposed project could have a significant effect on the environment, there will not be a significant effect in this case because the mitigation measures described on an attached sheet have been added to the project. A NEGATIVE DECLARATION will be prepared. ["-] I find that the proposed project MAY have a significant effect on the environment, and an ENVIRONMENTAL IMPACT REPORT is required. [---] I find that the proposed project MAY have a significant effect(s) on the environment, but at least one effect 1) has been adequately analyzed in an earlier document pursuant to applicable legal standards, and 2) has been addressed by mitigation measures based on the earlier analysis as described on attached sheets, if the effect is a "Potentially Significant Impact" or "Potentially Significant Unless Mitigated." An ENVIRONMENTAL IMPACT REPORT is required, but it must analyze only the effects that remain to be addressed. I fred that although the proposed project could have a significant effect on the environment, there WILL NOT be a significant effect ih this case because all potentially significant effects 1) have been 'analyzed adequately in an earlier EIR pursuant to applicable standards, and 2) have been avoided or mitigated. pursuant to that earlier EIR, including revisions or mitigation measures that are imposed upon the proposed project. I find that although the proposed project could have a significant effect on the environment, there WILL NOT be a significant effect in this case because all potentially significant effects 1) have been analyzed adequately in an earlier NEGATIVE DECLARATION pursuant to applicable standards, and 2) have been avoided or'mitigated pursuant to that earlier NEGATIVE DECLARATION, including revisions or mitigation measures that are imposed upon the proposed project. (~~ ~r3 ~~ Title Associate Planner Preparer: Elizabeth A. Binsack, Community Development Director 1) 2) 3) 4) 5) 6) 7) 8) 9). Do EVALUATION OF ENVIRONMENTAL IMPACTS Directions A brief explanation is required for all answers except "No Impact" answers that are adequately supported by the information sources a lead agency cites in the parentheses following each question. A "No Impact" answer is adequately supported if the referenced information sources show that the impact simply does not apply to projects like the one involved (e.g., the project falls outside a fault rupture zone). A "No Impact"answer should be explained where it is based on project-specific factors and general standards (e.g., the project will not expose sensitive receptors to pollutants, based on a project-specific screening analysis). All answers must take into account the whole action involved, including off-site, on-site, cumulative project level, indirect, direct, construction, and operational impacts. Once the lead agency has determined that a particular physical impact may occur, then the checklist answers must indicate whether the impact is potentially significant, less than significant with mitigation, or less than significant. "Potentially Significant Impact" is appropriate if there is substantial evidence that an effect may be significant. If there are one or more "Potentially Significant Impact" entries when the determination is made, and EIR is required. "Negative Declaration: Less Than Significant With Mitigation Incorporated" applies where the incorporation of mitigation measures has reduced an effect from "Potentially Significant Impact" to a "Less than Significant Impact." The lead agency must describe the mitigation measures, and briefly explain how they reduce the effect to a less than significant level (mitigation measures from Section XVII, "Earlier Analyses," may be cross- referenced). Earlier analyses may be used where, pursuant to the tiering, program EIR, or other CEQA process, an effect has been adequately analyzed in an earlier EIR or negative declaration. Section 15063 (c) (3)(D). In this case, a brief discussion should identify the following: a) Earlier Analysis Used. Identify and state where they are available for review. b) Impacts Adequately Addressed. Identify which effects from the above checklist were within the scope of and adequately analyzed in an earlier document pursuant to applicable legal standards, and state whether such effects were addressed by mitigation measures based on the earlier analysis. c) Mitigation Measures. For effects that are "Less than Significant with Mitigation Measures Incorporated," describe the mitigation measures which were incorporated or refined from the earlier document and the extent to which they address site-specific conditions for the project. Lead agencies are encouraged to incorporate into the checklist references to information sources for potential impacts (e.g., general plans, zoning ordinances). Reference to a previously prepared or outside document should, where appropriate, include a reference to the page or pages where the statement is substantiated. Supporting Information Sources: A source list should be attached, and other sources used or individuals contacted should be cited in the discussion. This is only a suggested form, and lead agencies are free to use different formats; however, lead agencies normally address the questions from this checklist that are relevant to a project's environmental effects in whatever format is selected. The explanation of each issue should identify: a) the significance criteria or threshold, if any, used to evaluate each question; and, b) the mitigation measure identified, if any, to reduce the impact to less than significance. EVALUATION OF ENVIRONMENTAL ACTS I. AESTHETICS- Would the project: Potentially Significant Impact Less Than Significant With Mitigation Incorporation Less Than Significant Impact No Impact a) Have a substantial adverse effect on a scenic vista? b) Substantially damage scenic resources, including, but not limited to, trees, rock outcroppings, and historic buildings within a state scenic highway? c) Substantially degrade the existing visual character or quality of the site and its surroundings? d) Create a new source of substantial light or glare which would adversely affect day or nighttime views in the area? II. AGRICULTURE RESOURCES: In determining whether impacts to agricultural resources are significant environmental effects, lead agencies may refer to the California Agricultural Land Evaluation and Site Assessment Model (1997) prepared by the California Dept. of Conservation as an optional model to use in assessing impacts on agriculture and farmland. Would the project: a) Convert Prime Farmland, Unique Farmland, or Farmland of Statewide Importance (Farmland), as shown on the maps prepared pursuant to the Farmland Mapping and Monitoring Program of the Califomia Resources Agency, to non- agricultural use? [23 b) Conflict with existing zoning for agricultural use, or a Williamson Act contract? c) Involve other changes in the existing environment which, due to their location or nature, could result in conversion of Farmland, to non-agricultural use? III. AIR QUALITY: Where available, the significance criteria established by the applicable air quality management or air pollution control district may be relied upon to make the following determinations. Would the project: a) Conflict with or obstruct implementation of the applicable air quality plan? [3 b) Violate any air quality standard or contribute substantially to an existing or projected air quality violation? c) Result in a cumulatively considerable net increase of any criteria pollutant for which the project region is non- attainment under an applicable federal or state ambient air quality standard (including releasing emissions which exceed quantitative thresholds for ozone precursors)? d) Expose sensitive receptors to substantial pollutant concentrations? e) Create objectionable odors affecting a substantial number of people? IV. BIOLOGICAL RESOURCES: - Would the project: a) Have a substantial adverse effect, either directl½ or through habitat modifications, on any species identified as a candidate, sensitive, or special status species in local or regional plans, policies, or regulations, or by the California Department ofFish and Game or U.S. Fish and Wildlife Service? b) Have a substantial adverse effect on any riparian habitat or other sensitive natural community identified in local or regional plans, policies, regulations or by the California Department offish and Game or U.S. Fish and Wildlife Service? c) Have a substantial adverse effect on federally protected wetlands as def'med by Section 404 of the Clean Water Act (including, but not limited to, marsh, vernal pool, coastal, etc.) through direct removal, filling, hydrological interruption, or other means? d) Interfere substantially with the movement of any native resident or migratory fish or wildlife species or with' established native resident or migratory wildlife corridors, or impede the use of native wildlife nursery sites? e) Conflict with any local policies or ordinances protecting biological resources, such as a tree preservation policy or ordinance? f) Conflict with the provisions of an adopted Habitat Conservation Plan, Natural Community Conservation Plan, or other approved local, regional, or state habitat conservation plan? V. CULTURAL RESOURCES: - Would the project: a) Cause a substantial adverse change in the significance of a historical resource as defined in § 15064.5? b) Cause a substantial adverse change in the significance of an archaeological resource pursuant to § 15064.5? c) Directly or indirectly destroy a unique paleontological resource or site or unique geologic feature? d) Disturb any human remains, including those interred outside of formal cemeteries? VI. GEOLOGY AND SOILS: - Would the project: a) Expose people or structures to potential substantial adverse effects, including the risk of loss, injury, or death involving: Potentially Significant Impact Less Than Significant With Mitigation Incorporation Less Than Significant Impact No Impact i) Rupture of a known earthquake fault, as delineated on the most recent Alquist-Priolo Earthquake Fault Zoning Map issued by the State Geologist for the area or based on other substantial evidence of a known fault? Refer to Division of Mines and Geology Special Publication 42. r~an Significant Potentially With Less Than Significant Mitigation' Significant Impact Incorporation Impact No Impact ii) Strong seismic ground shaking? iii) Seismic-related ground failure, including liquefaction? 0 0 0 0 iv)' Landslides? b) Result in substantial soil erosion or the loss of topsoil? c) Be located on a geologic unit or soil that is unstable, or that would become unstable as a result of the project, and potentially result in on- or off-site landslide, lateral spreading, subsidence, liquefaction or collapse? d) Be located on expansive soil, as defined in Table 18-1-B of the Uniform Building Code (1994), creating substantial risks to life or property? e) Have soils incapable of adequately supporting the use of septic tanks or alternative waste water disposal systems where sewers are not available for the disposal of waste water? VII. HAZARDS AND HAZARDOUS MATERIALS: Would the project: a) Create a significant hazard to the public or the environment through the routine transport, use, or disposal of hazardous materials? b) Create a significant hazard to the public or the environment through reasonably foreseeable upset and accident conditions involving the release of hazardous materials into the environment? c) Emit hazardous emissions or handle hazardous or acutely hazardous materials, substances, or waste within one-quarter mile of an existing or proposed school? d) Be located on a site which is included on a list of hazardous materials sites compiled pursuant to Government Code Section 65962.5 and, as a result, would it create a significant hazard to the public or the environment? e) For a project located within an airport land use plan or, where such a plan has not been adopted, within two miles of a public airport or public use airport, would the project result in a safety haTard for people residing or working in the project area? f) For a project within the vicinity of a private airstrip, would the project result in a safety hazard for people residing or working in the project area? 0 0 0 0 0 0 g) Impair implementation of or physically interfere with an adopted emergency response plan or emergency evacuation plan? h) Expose people or structures to a significant risk of loss, injury or death involving wildland fires, including where wildlands are adjacent to urbanized areas or where residences are intermixed with wildlands? VIII. HYDROLOGY AND WATER QUALITY: - Would the project: a) Violate any water quality standards or waste discharge requirements? b) Substantially deplete groundwater supplies or interfere substantially with groundwater recharge such that there would be a net deficit in aquifer volume or a lowering of the local groundwater table level (e.g., the production rate of pre- existing nearby wells would drop to a level which would not support existing land uses or planned uses for which permits have been granted)? c) Substantially alter the existing drainage pattern of the site or area, including through the alteration of the course of a stream or river, in a manner which would result in substantial erosion or siltation on- or off-site? d) Substantially alter the existing drainage pattern of the site or area, including through the alteration of the course of a stream or river, or substantially increase the rate or amount of surface runoff in a manner which would result in flooding on- or off-site? e) Create or contribute runoff water which would exceed the capacity of existing or planned stormwater drainage systems or provide substantial additional sources of polluted runoff'?. f) Otherwise substantially degrade water quality? g) Place housing within a 100-year flood hazard area as mapped on a federal Flood Hazard Boundary or Flood Insurance Rate Map or other flood hazard delineation map? h) Place within a 100-year flood hazard area structures which would impede or redirect flood flows? i) Expose people or structures to a significant risk of loss, injury or death involving flooding as a result of the failure of a levee or dam? j) Inundation by seiche, tsunami, or mudflow? IX. LAND USE AND PLANNING - Would the project: Potentially Significant Impact Less Than Significant With Mitigation Incorporation Less Than Significant Impact No Impact 0 0 0 N a) Physically divide an established communi~? 0 0 F-] b) Conflict with any applicable land use plan, policy, or regulation of an agency with jurisdiction over the project (including, but not limited to the general plan, specific plan, local coastal program, or zoning ordinance) adopted for the purpose of avoiding or mitigating an environmental effect? Less Than Significant Potentially With Less Than Significant Mitigation Significant Impact Incorporation ImPact No Impact 0 [5] c) Conflict with any applicable habitat conservation plan or natural community conservation plan? X. MINERAL RESOURCES - Would the project: a) Result in the loss of availability of a known mineral resource that would be of value to the region and the residents of the state? b) Result in the loss of availability of a locally-important mineral resource recovery site delineated on a local general plan, specific plan or other land use plan? 0 0 0 XI. NOISE- Would the project result in: a) Exposure of persons to or generation of noise levels in excess of standards established in the local general plan or noise ordinance, or applicable standards of other agencies? b) Exposure of persons to or generation of excessive groundborne vibration or groundborne noise levels? c) A substantial permanent increase in ambient noise levels in the project vicinity above levels existing without the project? d) A substantial temporary or periodic increase in ambient noise levels in the project vicinity above levels existing without the project? e) For a project located within an airport land use plan or, where such a plan has not been adopted, within two miles of a public airport or public use airport, would the project expose people residing or working in the project area to excessive noise levels? f) For a project within the vicinity of a private airstrip, would the project expose people residing or working in the project area to excess noise levels? XII. POPULATION AND HOUSING -Would the project: a) Induce substantial population growth in an area, either directly (for .example, by proposing new homes and businesses) or indirectly (for example, through extension of roads or other infrastructure)? b) Displace substantial numbers of existing housing, necessitating the construction of replacement housing elsewhere? 0 0 0 0 0 0 c) Displace substantial numbers of people, necessitating the construction of replacement housing elsewhere? Potentially Significant Impact Less Than Significant With Mitigation Incorporation Less Than Significant Impact No Impact XIII. PUBLIC SERVICES a) Would the pi'oject result in substantial adverse physical impacts associated with the provision of new or physically altered governmental facilities, need for new or physically altered governmental facilities, the construction of which could cause significant environmental impacts, in order to maintain acceptable service ratios, response times or other performance objectives for any of the public services: Fire protection? Police protection? Schools? Parks? Other public facilities? XIV. RECREATION- a) Would the project increase the use of existing neighborhood and regional parks or other recreational facilities such that substantial physical deterioration of the facility would occur or be accelerated? b) Does the project include recreational facilities or require the construction or expansion of recreational facilities which might have an adverse physical effect on the environment? XV. TRANSPORTATION/TRAFFIC - Would the project: a) Cause an increase in traffic which is substantial in relation to the existing traffic load and capacity of the street system (i.e. result in a substantial increase in either the number of vehicle trips, the volume to capacity ratio on roads, or congestion at intersections)? b) Exceed, either individually or cumulatively, a level of service standard established by the county congestion management agency for designated roads or highways? c) Result in a change in air traffic pattems, including either an increase in traffic levels or a change in location that results in substantial safety risks? d) Substantially increase hazards due to a design feature (e.g. sharp curves or dangerous intersections) or incompatible uses (e.g., farm equipment)? e) Result in inadequate emergency access? f) Result in inadequate parking capacity? 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 g) Conflict with adopted policies, plans, or programs supporting alternative transportation (e.g., bus turnouts, bicycle racks)? XVI. UTILITIES AND SERVICE SYSTEMS- Would the project: a) Exceed wastewater treatment requirements of the applicable Regional Water Quality Control Board? b) Require or result in the construction of new water or wastewater treatment facilities or expansion of existing facilities, the construction of which could cause significant environmental effects? c) Require or result in the construction of new storm water drainage facilities or expansion of existing facilities, the construction of which could cause significant environmental effects? d) Have sufficient water supplies available to serve the project from existing entitlements and resources, or are new or expanded entitlements needed? e) Resuli in a determination by the wastewater treatment provider which serves or may serve the project that it has adequate capacity to serve the project's projected demand in addition to the provider's existing commitments? f) Be served by a landfill with sufficient permitted capacity to accommodate the project's solid waste disposal needs? g) Comply with federal, state, and local statutes and regulations related to solid waste? XVII. MANDATORY FINDINGS OF SIGNIFICANCE a) Does the project have the potential to degrade the quality of the environment, substantially reduce the habitat of a fish or wildlife species, cause a fish or wildlife population to drop below self-sustaining levels, threaten to eliminate a plant or animal community, reduce the number or restrict the range of a rare or endangered plant or animal or eliminate important examples of the major periods of California history or prehistory? b) Does the project have impacts that are individually limited, but cumulatively considerable? ("Cumulatively considerable" means that the incremental effects of a project are considerable when viewed in connection with the effects of past projects, the effects of other current projects, and the effects of probable future projects)? c) Does the project have environmental effects which will cause substantial adverse effects on human beings, either directly or indirectly? Potentially Significant Impact Less Than Significant With Mitigation Incorporation Less Than Significant Impact No Impact .[5] ATTACHMENT A EVALUATION OF ENVIRONMENTAL IMPACTS DENSITY BONUS ORDINANCE BACKGROUND The State Planning and Zoning Law (Government Code Section 65915) created_ a Density Bonus Law to offer land use based incentives to increase the economic feasibility of affordable housing development. The law was amended in 1989 requiring that all local governments adopt an implementing ordinance and establish prOcedures for processing such proposal. The Density Bonus Ordinance states that when a developer agrees to provide: (2) (3) At least 20 percent of the total units affordable to Lower Income Households; or At least 10 percent of the total units affordable to Very Low Income Households; or 50 percent Senior citizen housing. The city shall either: (a) Grant a Density Bonus of at least 25 percent, and at least one Concession or Incentive, unless the City Council makes a written finding that the additional concession or incentive is not required in order to provide for affordable housing, or (b) Provide other Incentives of Equivalent Financial Value based upon the land cost per dwelling unit. There would be no physical improvement or changes in the environment as a result of the adoption of this ordinance. Impacts of potential future projects would be evaluated in conjunction with each future project. 1. AESTHETICS Items a throuqh d- "No Impact": The proposed ordinance would establish provisions for granting density bonus for affordable housing project. No physical improvements are currently proposed in conjunction with the adoption of this ordinance. As such, the proposed ordinance will not have any effects on aesthetics in the area including scenic vistas or scenic resources, including, but not limited to, trees, rocks outcropping, and historic buildings within a state scenic highway. The proposed ordinance will not degrade the existing visual character or quality of the plan area or its surroundings. Impacts related to any future project would be identified and evaluated in conjunction with a specific project. Density Bonus - Initial Study ,~ ttachment Page 2 of 7 . . SourCes: Tustin Zoning Code Tustin General Plan Govemment Code Section 65915 Mitigation/Monitoring Required: None Required AGRICULTURAL RESOURCES Items a through c- "No Impact": The proposed ordinance would allow for higher densities and provide incentives to encourage the development of affordable housing, however, no physical improvements are 'currently proposed in conjunction with the ordinance. The proposed ordinance will have no impacts' on any farmland, nor will it conflict with existing zoning for agricultural use, or a Willamson Act contract. The ordinance will not result in conversion of farmland to a non-agricultural use. Impacts related to any future project would be identified and evaluated in conjunction with a specific project. Sources: Tustin General Plan Mitigation/Monitoring Required: None Required AIR QUALITY Items a through e- "No Impact. The proposed ordinance would establish provisions for granting density bonuses for affordable housing projects, however, no physical improvements are currently proposed in conjunction with the ordinance. As such, the ordinance will not conflict with or obstruct implementation of any applicable air plan, violate any air quality standard, result in a cumulatively considerable increase of any criteria pollutant as applicable by federal or ambient air quality standard, nor will it expose sensitive receptors to substantial pollutant concentrations, or create objectionable odor affecting a substantial number of people. Impacts related to future project would be evaluated when a specific project is proposed. SourCes: South Coast Air Quality Management District Rules and Regulations Tustin General Plan . Mitigation/Monitoring Required: None Required o BIOLOGICAL RESOURCES Items a throuqh f- "No Impact": The proposed ordinance would establish provisions for granting density bonuses for affordable housing projects, Density Bonus - Initial /t ttachment ,~ Page 3 of 7 o o however, no physical improvements are currently proposed in conjunction with the ordinance. No impacts to any unique, rare, or endangered species of plant or animal life identified in local or regional plans, policies or regulations by the California Department of Fish and Game or U.S. Fish and Wildlife Service Would occur as a result of this ordinance. Impacts related to future project would be evaluated when a specific project is proposed. Sources: Tustin General Plan Mitigation/Monitorinq Required: None Required CULTURAL RESOURCES Items a through d- "No Impact": The proposed ordinance would establish provisions for granting density bonuses for affordable housing projects, however, no physical improvements are currently proposed in conjunction with the ordinance. As such, the ordinance will not adversely affect any historical resources or archaeological resources or destroy.or disturb a unique paleontological resource, human remains or geological feature. Impacts related to any future project would be identified and evaluated in conjunction with a specific project. Sources: Cultural Resources District Tustin Zoning Code General Plan Mitigation/Monitorinq Required: None Required GEOLOGY AND SOILS Items a i'l), a (ii), a (iii), a (iv), b, c, d and e- "No Impact": The proposed ordinance would establish provisions for granting density bonuses for affordable housing projects, however, no physical improvements are currently proposed in conjunction with the ordinance. As such, the proposed ordinance will not expose people to potential adverse geologic impacts, including the risk of loss, injury, or death involving the rupture of a known earthquake fault, strong seismic ground shaking, landslides, soil erosion, or loss of top soil, nor is the project on unstable or expansive soil. Impacts related to any future project would be identified and evaluated in conjunction with a specific project. Sources: Tustin General Plan Miti.qation/Monitorinq Required: None Required Density Bonus - Initial Study Attachment A Page 4 of 7 . o o HAZARD AND HAZARDOUS MATERIALS Items a through h- "No Impact": The proposed ordinance would establish provisions for granting density bonuses for affordable housing projects, however, no physical improvements are currently proposed in conjunction with the ordinance. As such, the proposed ordinance will not result in significant hazards (i.e. explosion, hazardous materials spill, interference with emergency response plans, wildland fires, etc.), nor is the project area located within an airport land use plan, or vicinity of a private airstrip. Impacts related to future project would be evaluated when a specific project is proposed. Sources: Orange County Fire Authority Orange County Health Agency Tustin General Plan Mitigation/Monitorinq Required: None Required HYDROLOGY AND WATER QUALITY Items a throuqh j-"No Impact": The proposed ordinance would establish provisions for granting density bonuses for'affordable housing projects, however, no physical improvements are currently proposed in conjunction with the ordinance. The ordinance will not result in any change in the amount or direction of surface or groundwaters. Impacts related to any future project would be identified and evaluated in conjunction with a specific project. Sources: Tustin General Plan . Mitigation/Monitoring Required: None Required LAND USE AND PLANNING Items a through c- "No Impact": The proposed ordinance would establish provisions for granting density bonuses for affordable housing projects. This is in accordance with the State Law requiring cities to adopt implementing ordinances and establish procedures for processing such proposals. No physical improvement is proposed in conjunction with the ordinance. The ordinance is consistent with the intent of the City's General Plan to provide affordable housing to Iow income families. The proposed ordinance will not physically divide an established community or conflict with any applicable habitat conservation plan. Impacts related to density increases would be identified and evaluated in conjunction with a specific project. Density Bonus - Initial Attachment A Page 5 of 7 ¸10. 11. 12. Sources: Tustin General Plan Tustin Zoning Code Mitigation/Monitoring Required: None Required MINERAL RESOURCES Items a and b- "No Impact": The proposed ordinance would establish provisions for granting density bonuses for affordable housing projects, however, no physical improvement is currently proposed in conjunction with the ordinance. The proposed ordinance will not result in loss of a known mineral resource, or availability of a locally important mineral resource recovery site delineated on the general plan or other applicable land use maps. Impacts related to any future project would be identified and evaluated in conjunction with a specific project. Sources: Tustin General Plan Mitigation/Monitoring Required: None Required NOISE Items a throuqh f- "No Impact": The proposed ordinance would establish provisions for granting density bonuses for affordable housing projects. No physical improvement is currently proposed in conjunction with the ordinance. As such, the proposed ordinance will not expose persons to noise levels in excess of standards established in the general plan, noise ordinance, or excessive ground vibrations, nor will it create a permanent increase in the existing ambient noise levels. Impacts related to any future project would be identified and evaluated in conjunction with a specific project. Sources: Tustin City Code Tustin General Plan Mitigation/Monitoring Required: None Required POPULATION AND HOUSING Items a, b, and c- "No Impact": The proposed ordinance would allow developer to construct additional units beyond the permitted number of units allowed by the Zoning Code or the General Plan. However, there are no physical improvements proposed in conjunction with the ordinance. Impact associated with the increase in population and housing as a result of this ordinance would be identified and evaluated in conjunction with a specific project. Density Bonus - Initial Study Attachment ,~ Page 6 of 7 13. 14. 15. Sources: Tustin General Plan Mitigation/Monitoring Required: None Required PUBLIC SERVICES Item a-" No Impact": The proposed ordinance would establish provisions for granting density bonuses for affordable housing projects, however, no physical improvements are currently proposed in conjunction with the ordinance. As such, the proposed ordinance will not create demand for alteration or addition of government facilities or services (fire and police protection, schools, parks, etc.). Impacts related to any future project would be identified and evaluated in conjunction with a specific project. Sources: Tustin General Plan Mitigation/Monitoring Required: None Required RECREATION Items a and b- "No Impact": The proposed ordinance would establish provisions for granting density bonuses 'for affordable housing projects, however, no property acquisitions or physical improvements are currently proposed in conjunction with the ordinance. No physical changes to the number of residential units are proposed at this time and the ordinance will not increase demand for neighborhood parks or recreational facilities. Impacts related to any future project would be identified and evaluated in conjunction with a specific project. Sources: Tustin General Plan Mitigation/Monitoring Required: None Required TRANSPORTATION/TRAFFIC Items a through g -"No Impact": The proposed ordinance would establish provisions for granting density bonuses for affordable housing projects, however, no physical improvements are currently proposed in conjunction with the ordinance. As such, no alteration in the traffic generation and circulation patterns within the project area would be affected by the proposed ordinance. The proposed ordinance will not result in changes to air traffic patterns, emergency access, level of service standards, or conflict with adopted policies, plans or' programs supporting altemative transportation. Impacts related to any future project would be identified and evaluated in conjunction with a specific project. Density Bonus - Initial S, Attachment A Page 7 of 7 16. 17. Sources: Tustin General Plan Mitigation/Monitoring Required: None Required UTILTIES AND SERVICE SYSTEMS - Items a through g - "N© Impact": The proposed ordinance would establish provisions for granting density bonuses for affordable housing projects, however, no property acquisitions or physical improvements are proposed in conjunction with the ordinance. The adoption of the ordinance will have no impacts to water treatment, water supply, wastewater treatment, and solid waste disposal. Impacts related to any future project would be identified and evaluated in conjunction with a specific project. Sources: Tustin General Plan Mitigation/Monitoring Required: None Required MANDATORY FINDINGS OF SIGNIFICANCE The purpose of the proposed ordinance is to establish provisions for granting density bonuses for affordable housing projects. Since no physical improvements are proposed in conjunction with the ordinance, the ordinance does not have the potential to degrade the quality of the environment nor achieve short-term environmental goals to the disadvantage of the long-term. S:\CDD~JUSTINA~current planning\density bonus nd attachment A.doc ATTACHMENT C Ordinance No. 1222 ORDINANCE NO. 1222 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, ESTABLISHING THE METHOD OF PROVIDING DEVELOPER INCENTIVES FOR THE DEVELOPMENT OF HOUSING AS REQUIRED BY STATE LAW The City Council of the City of Tustin does ordain as follows: Section 1. PURPOSE. The State Planning and Zoning law requires that when a developer of housing agrees to include a certain amount of housing for specified Iow income or senior households in a housing development, the City must provide the developer with incentives to develop the housing for Iow income or senior households. The City is required by Government Code Section 65915 to adopt an ordinance specifying the method of providing developer incentives. Section 2. Chapter 1 is added to Article 9 (Land USe) of the Tustin City Code to read as follows: CHAPTER 1 INCENTIVES FOR THE DEVELOPMENT OF AFFORDABLE HOUSING PART 1 - GENERAL 91'11 PURPOSE AND INTENT The purpose of this Chapter is to provide incentives for the production of housing for very Iow, Lower IncOme, or older persons in accordance with California Law pertaining to Density Bonuses. The intent of this Chapter is to facilitate the development of affordable housing and to implement the goals, objectives, and policies of the City's Housing Element. The regulations and procedures set forth in this Chapter shall apply throughout the City with the exception of areas identified as "East Tustin Specific Plan" and "MCAS-Tustin". Sections of the California Government Code referenced in this Chapter and application forms for complying with this Chapter, shall be available to the public. Ordinance No. 1222 Page 2 of 12 9112 DEFINITIONS Whenever the following terms are used in this Chapter, they shall have the meaning established by this section: "Affordable Rent" means monthly housing expenses, including a reasonable allowance for utilities, for rental Target Units reserved for Very Low or Lower Income Households, not exceeding the following calculations: (1) Very Low Income: 50 percent of the area median income for Orange County, adjusted for household-size, multiplied by 30 percent and divided by 12. (2) LoWer Income: 60 percent of the area median income for Orange County, adjusted for household size, multiplied by 30 percent and divided by 12. "Affordable Sales Price" means a sales price at which Lower or Very Low Income Households can qualify for the purchase of Target Units, calculated on the basis of underwriting standards of mortgage financing available for the development. "Concession or Incentive" means the concessions and incentives as specified in California Government Code Section 65915(h): . ' A reduction in site development standards of a modification of zoning code requirements or architectural design requirements which exceed the minimum building standards approved by the State Building Standards Commission as provided in 'Part 2.5 (commencing with Section 18901) of Division 13 of the Health and Safety Code, including, but not limited to, a reduction in setback and square footage requirements and in the ratio of vehicular parking spaces that would otherwise be required; or . 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 developme'nt 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 developer or the city which result in identifiable cost reduction. "Density Bonus" means a density increase of at least 25 percent over the otherwise Maximum Residential Density. For purposes of calculating the minimum number of Density Bonus Units to be granted, the Maximum Residential Density for the site shall Ordinance No. 1222 Page 3 of 12 be multiplied by .25. When calculating the number of permitted Density Bonus Units, any fractions of units shall be rounded to the next larger integer. "Density Bonus Units" means those residential units granted pursuant to the provisions of this Chapter which exceed the otherwise Maximum Residential Density for the development site. - "Developer" an applicant who desires to construct five or more dwelling units. "Direct Financial Incentive" means the donation of land or city financial assistance for a land purchase, the waiver of city fees, the waiver of dedication requirements or other financial assistance by the city Housing Incentive Agreement. "Director'' means the City's Director of Community Development or designee. "Housing Cost" means the sum of actual or projected monthly payments fdr all of the following associated with for-sale Target Units: principal and interest on a mortgage loan, including any loan insurance fees', property taxes and assessments, fii'e and casualty insurance, property maintenance and repairs, homeowner association fees, and a reasonable allowance for utilities. "Housing Development" means construction projects consisting of five or more residential units, including single family, multifamily, and mobile-homes for sale or rent pursuant to this Chapter. "Housing Incentive Agreement" means a legally binding agreement between a developer and the City and/or the Redevelopment Agency to ensure that the requirements of this Chapter are satisfied. The agreement among other things, shall establish the number of Target Units, size, location, terms and conditions of affordability, and production schedule. "Incentive of Equivalent Financial Value" means an incentive approved by the City Council based on the land cost per dwelling unit of development. The value of density bonus is determined by the difference in the costs of the land with and without the density bonus. "Lower Income Household" means households whose income does not exceed the Iow or very Iow income limits applicable to Orange County, as .published and periodically updated by the State Department of Housing and Community Development pursuant to Section 50079.5 of the California Health and Safety Code. "Maximum Residential Density" means the maximum number of residential units permitted by the Land Use Element of the City's General Plan and Zoning Ordinance with the exception of "East Tustin Specific Plan" and "MCAS-Tustin" as of the date of Ordinance No. 1222 Page 4 of 12 application to the City, excluding the Density Bonus allowed by this ChaPter. If the housing development is within a planned development Overlay zone, the maximum residential density shall be determined on the basis of the general plan and the maximum density of the underlying zone as of the date of application to the City. "Non-Restricted Unit" means all units within a Housing Development excluding the · Target Units. "Qualifying HouSing. Resident" means senior citizens eligible to reside in Senior Citizen "senior Citizen Housing" means a housing development consistent with the California Fair Employment and Housing Act (Government Code Section 12900 et. seq., including 12955.9 in particular), which has been "designed to meet the physical and social needs of senior citizens," and which otherwise qualifies as "housing for older persons" as that phrase is used in the federal Fair Housing Amendments Act of 1988 (P.L. 100-430) and implementing regulations (24 CFR, part l 00, subpart E), and as that phrase is used in California Civil Code Section 51.2 and 51.3. "Target Unit" means a dwelling unit within a Housing Development which will be reserved for sale or rent to, and affordable to, Very Low or Lower Income Households, or Qualifying Residents. In determining the number of Target Units, the Maximum Residential Density shall be multiplied by .10 where Very Low Income Households are targeted, or by .20 where Lower Income Households are targeted. The Density Bonus Units shall not be included when determining the total number of Target Units in the Housing Development. When calculating the required number of Target Units, any resulting decimal fraction shall be rounded to the next larger integer. "Very Low Income Household" means households whose income does not exceed the very Iow income limits applicable to Orange County, as published and periodically updated by the State Department of Housing and Community Development pursuant to Section 50105 of the California Health and Safety Code. PART 2 - INCENTIVES 9121 am REQUIRED INCENTIVES HoUsing Development When a developer agrees to provide: (1) At least 20 percent of the total units of the Housing Development as Target Units affordable to Lower Income Households; or Ordinance No. 1222 Page 5 of 12 (2) (3) At least 10 percent of the total units of the Housing Development as Target Units affordable to Very LoW Income Households; or At least 50 percent Senior citizen housing; The City shall either: (a) Grant a Density Bonus, and at least one Concession or Incentive, unless the City Council makes a written finding that the additional concession or incentive is not required in order to provide for affordable housing, as defined in Section 50052.5 of the Health and Safety Code, or for rents for the targeted units to be set as specified in Government Code Section' 65915(c), or (b) Provide other Incentives of Equivalent Financial Value based upon the land cost per dwelling unit. If a developer agrees to construct both 20 percent of the total units for lower income households and 10 percent of the total units for very Iow income households, the developer is entitled to only one density bonus and at least one Concession or Incentive. In cases where a density increase of less than 25 percent is requested, no reduction will be allowed in the number of Target Units required. In cases where the developer agrees to construct more than 20 percent of the total units for Lower Income Households, or more than 10 percent of the total units for Very Low Income Households, the developer is entitled to only one Density Bonus and one Concession or Incentive. The density increase of more than 25 percent if granted, shall be considered a Concession or Incentive. Similarly, a developer who agrees to construct Senior Citizen Housing with 20 or 10 percent of the units reserved for Low- or Very Low-Income Households, respectively, is only entitled to one Density. Bonus and one Concession or Incentive. bi Condominium Conversion When an applicant for approval to convert apartments to a condominium project agrees to provide: (1) At least 33 percent of the total units of the proposed condominium project to persons and families of Low or Moderate Income; or Ordinance No. 1222 Page 6 of12 (2) At least 15 percent of the total units of the proposed cOndominium project to Lower Income Households; and (3) Agrees to pay for the reasonably administrative costs incurred by the City pursuant to this section; the City shall either: (1) Grant a density bonus; or (2) Provide other incentive.~ of equivalent value. The City may place such reasonable conditions on the granting of a density bonus or other incentives of equivalent financial value as it finds appropriate, including, but not limited to, conditions which assure continued affordability of units to subsequent purchasers who are persons and families of Low and Moderate Income or Lower Income Households. For purposes of this section, "density bonus" means an increase in units of 25 percent over the number of apartments, to be provided within the existing structure or structures proposed for conversion. For purpose of this section, "other incentives of equivalent financial values" shall not be construed to require the City to provide cash transfer payments or other monetary compensation but may include the reduction or waiver of requirements which the City otherwise apply as conditions of conversion approval. 9122 OPTIONAL INCENTIVES The City may grant multiple additional Concession and Incentives to facilitate the inclusion of more Target Units than are required by this Chapter. The City Council may approve any incentive is its sole discretion, in addition to those listed in Section 6213(a) or to comply with Section 6213(b), including, but not limited to: (a) A Density Bonus of more that 25 percent (b) Waived, reduced, or deferred planning, plan check, building permit and/or development impact fees. (c) Direct financial aid (e.g., redevelopment housing set-aside funds, Community Development Block Grant funds) in the form of a loan or a grant to subsidize or provide Iow interest financing for on or off site improvements, contribution to land or construction costs. Ordinance No. 1222 Page 7of12 PART 3 DEVELOPMENT REQUIREMENTS 9131 STANDARD REQUIREMENTS (a) Target Units shall be constructed concurrently with Non-Restricted Units unless both the City' and the developer agree in the Housing Incentive Agreement- described' in Section 6218 to an alternative schedule for development. (b) If the City complies with Section 9121, Target Units shall remain affordable to the designated group for a period of 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. Those units targeted for sale or rental to lower income or very low income households shall be affordable at an "Affordable Sales Price" or "Affordable Rent" as specified in Section 9112. (c) If the City does not grant a Concession or Incentive in addition to a density bonus, the Target Units shall remain affordable to the designated group for a period of 10 years. (d) In determining the maximum Affordable Rent or Affordable Sales Price of Target Units the following household and unit size assumptions shall be used by the City, unless the Housing Development is subject to different assumptions imposed by other applicable governmental regulations: SRO (residential hotel) unit 0 bedroom (studio) I bedroom 2 bedroom 3 bedroom 4 bedroom 75% of 1 person 1 person 2 person 3 person 4 person 6 person (e) 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 development standards applicable to housing in the City, except those which may be modified as provided by this Chapter. (f) Unless the City Council makes the finding specified in Section 9121(a), A Housing Incentive Agreement shall be entered into between the Developer and City and/or the Redevelopment Agency to memorialize among other things, the Developer's commitment to provide Target Units in accordance with this Chapter and other applicable provisions of State Law. The Agreement shall be made a condition of the development permits (e.g., tract maps, parcel maps, site plans, planned Ordinance No. 1222 Page 8 of 12 development or conditional pursuant to this Chapter. use permits, etc.) for all Housing Developments 9132 LOCATION OF TARGET UNITS (a) Target Units should be built on-site wherever possible and, when practical, be dispersed within the Housing Development. Where feasible, the number of bedrooms of the Target Units should be equivalent to the bedroom mix of the non- Target units of the Housing Development; except that the Developer may include a higher proportion of Target Units with more bedrooms. (b) Circumstances may arise in which the public interest would be serVed by allowing some or all of the Target Units associated with one Housing Development to be constructed at an alternative development site. Where the developer and the City agree in the Housing Incentive Agreement, the resulting linked developments shall be considered a single Housing Development for purposes of this Chapter. Under these circumstances, the developer shall be subject to the same requirements of this Chapter for the Target Units to be provided on the alternative site. PART 4 APPLICATION AND REVIEW 9141 Application Requirements and Review (a) A developer proposing a Housing Development pursuant to this Chapter, may submit a preliminary application prior to the submittal of any formal request for approval of a permit for a Housing Development. Applicants are encouraged to schedule a pre-application conference with the Director to discuss and identify potential application issues. No charge will be required for the pre-application conference. A preliminary application shall include the following information: 1. A description of the proposed Housing Development including the total number of units, Target Units by income category, and Density Bonus Units. 2. The zoning and general plan designations and assessors parcel number(s) of the project site. 3. The location of the target units within the housing development. 4. A plan by which the developer intends to ensure the continued affordability of all Lower Income units for 30 years or longer if required by the construction or mortgage financing assistance program, mortgage insurance program or rental subsidy program. Ordinance No. 1222 Page 9 of 12 (b) , A plan by which the developer intends to ensure that the units intended for Lower Income Households, as defined in the Health and Safety Code § 50079.5, shall be affordable at a rent that does not exceed 30 percent of 60 percent of the area median income. o A plan by which the developer intends to ensure that the units intended for Very Low Income Households, as defined in the Health and Safety Code § 50105.5, shall be affordable at a rent that does not exceed 30 percent of 50 percent of the area median income. 7. The number of additional "housing units" requested as the "density bonus" for the housing development. o A description of all other incentives requested, their financial value based upon the land cost per dwelling unit, an explanation of why they are needed and how they will be utilized. 9. A description of the development and zoning standards requested to be modified or waived and an explanation of why they are needed. 10.A vicinity map and preliminary site plan, drawn to scale, including building footprints, driveway and parking layout. 11. If the developer requests to receive (he benefits of this Chapter, in the form of a waiver or modification of a development standards or zoning code requirements, the developer shall provide substantial facts in the form of a development pro-forma that the waiver or modification is necessary to make the Target Units and other units in the Housing Development economically feasible. At a minimum, the development pro-forma shall include information identifying capital costs, equity investment, debt service, discount rate, revenues, vacancy allowance, operating expenses, net income or net operating income, pre-tax cash flow, after-tax cask flow, and return on investment. 12. The developer shall acknowledge in writing that a Housing Incentive Agreement is required. An application for a Housing Incentive pursuant to this Chapter shall be processed concurrently with any other permit application(s) required for the Housing Development. At a minimum, the application shall contain all the information described in Section 6217(a)(1)-(12) plus all other required information. .Final approval or disapproval of an application shall be made by the City Council upon recommendation of the Planning Commission, except that no approval shall be effective until the City and Developer have executed a Housing Incentive Agreement. Ordinance No. 1222 Page 10 of 12 (c) Within 60 days of receipt of the preliminary application the City shall provide the developer, a letter which identifies project issues of concern and the proposed incentive that the Director would recommend to the Planning Commission and City Council and the procedures for compliance with this Chapter. (d) Where the developer proposed that the City provide direct financial incentives, the proposal shall be considered by the Planning Commission for recommendation to the City Council for their preliminary approval. A preliminary approval shall indicate the City Council's approval of the proposal for processing, but no direct financial incentives shall be deemed approved until embodied in the Housing Incentive Agreement. 9142 HOUSING INCENTIVE AGREEMENT (a) The terms of the draft Housing Incentive Agreement shall be reviewed and approved by the Planning Commission and the City Attorney. The Planning Commission shall provide recommendation to the City Council for final approval. Final approval of such Agreement shall be a condition of issuance of any city permit. (b) The final approval of any documents as required by the Agreement shall take place prior to final map approval, or, where a map is not being processed, prior to issuance of building permits for any parcels in the Housing Incentive Agreement. The Agreement shall be binding to all future owners and successors in interest. (c) The Agreement shall include at least the following: (1) The total number of units approved for the Housing Development including the number of Target Units. (2) A description of the household income group to be accommodated by the Housing Development, and the standards for determining the corresponding Affordable Rent or Affordable Sales Price. (3) The location, unit sizes (square feet), and number of bedrooms of Target Units. (4) Affordability restrictions for Target Units of at least 10 or 30 years, as applicable in accordance with this Chapter. (5) A schedule for completion and occupancy of Target Units. Ordinance No. 1222 Page 11 of 12 (d) (e) (6) A description of the Concession or Incentive or other Incentive of Equivalent 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) Other provisions to ensure implementation and Chapter and State Law. compliance with this In the case of for-sale Housing Developments, the Agreement shall provide for the following regarding the initial sale and use of Target Units during the applicable use restriction period and for the respective affordability period: (1) Target Units shall, upon initial sale, be sold to eligible Very Low or Lower Income Households consistent with this Chapter or as approved by the City Council at an Affordable Sales Price and Housing Cost or to Qualified Residents (i.e., maintained as Senior citizen housing) as defined by this Chapter. (2) Target Units shall be initially owner-occupied by eligible Very Low or Lower Income Households, or by Qualified Residents in the case of Senior citizen housing. (3) The Agreement shall provide for the continued affordability of the Target Units for the applicable affordability period. In the case of rental Housing Developments, the Agreement shall provide for the following conditions governing the use of Target Units during the affordability period: The rules and procedures for qualifying tenants, establishing Affordable Rent, filling vacancies, and maintaining Target Units for qualified tenants; (2) Provisions requiring the owner to verify tenant incomes and maintain books and records to demonstrate compliance with this Chapter and State Law. (3) Provisions requiring owners to submit an annual report to the City/County, which includes the name, address, and income of each person occupying Target Units, and which identifies the bedroom size and monthly rent or cost of each Target Unit. Ordinance No. 1222 Page 12 of 12 Section 4. SEVERABILITY If any section, subsection, sentence, clause, phrase or portion of this ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council of the City of Tustin hereby declares that it would have adopted this ordinance and each section, subsection, sentence, clause, phrase or portion thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional. PASSED AND ADOPTED by the City Council of the City of Tustin at a regular meeting on the day of ,1999. Tracy Wills Worley, Mayor Pamela Stoker City Clerk STATE OF CALIFORNIA ) COUNTY OF ORANGE ) CITY OF TUSTIN ) CERTIFICATION FOR ORDINANCE NO. 1222 PAMELA STOKER, City 'Clerk and ex-officio of the City Council of the City of Tustin, California, does hereby certify that the whole number of the members of the City Council if five; that the above and foregoing ordinance No. 1222 was duly and regularly introduced at a regular meeting of the Tustin City Council, held on day of ~., 1999 and was given its second reading, passed and adopted at a regular meeting of the City Council held on the __ of~, 1999 by the following vote: COUNCILPERSONS AYES: COUNCI'LPERSONS NOES: COUNCILPERSONS ABSTAINED: COUNCILPERSONS ABSENT: Pamela Stoker, City Clerk S:\CDD\ORDINANC\1222.doc