HomeMy WebLinkAbout11 CODE AMENDMENT 2017-006 (ORDINANCE NO. 1484), INCENTIVES FOR THE DEVELOPMENT OF AFFORDABLE HOUSINGMEETING DATE
TO
FROM
Agenda Item 1 1
wed
AGENDA REPORT City Man- ager Cit Man
fA
Finance Director
OCTOBER 3, 2017
JEFFREY C. PARKER, CITY MANAGER
ELIZABETH A. BINSACK, COMMUNITY DEVELOPMENT DIRECTOR
SUBJECT: CODE AMENDMENT 2017-006 (ORDINANCE NO. 1484), INCENTIVES
FOR THE DEVELOPMENT OF AFFORDABLE HOUSING
SUMMARY:
Code Amendment 2017-006 proposes to amend Article 9 (Land Use) Chapter 1 of the
Tustin City Code, related to Incentives for the Development of Affordable Housing to
comply with recent updates of State law.
On September 12, 2017, the Planning Commission adopted Resolution No. 4348,
recommending that the Tustin City Council adopt Ordinance No. 1484. (Code
Amendment 2017-006) (Applicant: City of Tustin)
RECOMMENDATION:
That the City Council introduce and have first reading of Ordinance No. 1484, (Code
Amendment (CA) 2017-006) by amending Article 9 Chapter 1, in its entirety, relating to
Incentives for the Development of Affordable Housing (Density Bonus); and set a
second reading for the next City Council meeting.
FISCAL IMPACT:
Ordinance No. 1484 is a City -initiated project, in response to requirements of State law.
There is no direct fiscal impact to the General Fund.
CORRELATION TO THE STRATEGIC PLAN:
The proposed project furthers the objectives of the following Strategic Plan goals:
Goal A: Economic and Neighborhood Development — The proposed project would
enhance the vibrancy and quality of life in the community.
Goal B: Public Safety and Protection of Assets — The proposed project would ensure
Tustin is an attractive, safe and well maintained community in which people feel pride.
City Council Report
October 3, 2017
CA 2017-006
Page 2
• Goal D: Strong Community and .Regional Relationships — The proposed project
would foster regional planning and build relationships through incentives that
help to provide fair share affordable housing in. the region.
APPROVAL AUTHORITY:
The TCC Section 9295g authorizes the City Council to adopt Code amendments following
a recommendation by the Planning Commission and a public hearing.
BACKGROUND AND DISCUSSION:
On September 28, 2016, Governor Brown signed legislation to amend the State Density
Bonus Law, which allows more dwelling units than otherwise may be allowed on a site
in exchange for providing affordable housing. The overall intent of the law, originally
enacted in 1979, is to encourage cities and counties to offer density bonuses,
incentives, and waivers to housing developments that include certain percentages of
affordable units. By incentivizing developers, the Density Bonus Law promotes the
construction of housing for seniors, special needs and low-income families. The
Assembly Bills discussed below amend Government Code Section 65915 and add
Section 65915.7 to the State Density Bonus Law.
The recent amendments to density bonus laws went into effect statewide on January 1,
2017. Below is a summary of the key components of each bill:
Assembly Bill (AB) 2442
This law expands the categories of housing that can qualify for a density bonus. The
following specialized housing types now qualify for an additional density bonus,
provided the specialized units are subject to a very -low income affordability restriction
for 55 years:
• Ten (10) percent of total units reserved for transitional foster youth
• Ten (10) percent of total units reserved for disabled veterans
• Ten (10) percent of the total units reserved for homeless persons
Units set aside for these populations will qualify for an additional density bonus of
twenty (20) percent of the number of specialized units (not the total project). Because
these units are income restricted, the projects also qualify for the standard density
bonus so that an applicant would have an opportunity to choose which density bonus
will be most beneficial. For example, under this law, a development with 100 units, ten
(10) percent of which are set aside for transitional foster youth, disabled veterans or
City Council Report
October 3, 2017
CA 2017-006
Page 3
homeless persons, the development would be entitled to two (2) additional units instead
of thirty three (33) units if ten (10) percent are entitled under the low-income category.
Section 9121(e)(1) has been revised accordingly.
Assembly Bill (AB) 2501
To streamline the density bonus process, the law requires cities adopt procedures and
timelines, provide a list of documents and information required for an application to be
deemed complete, and notify the applicant whether the application is complete within
the time limits contained in the Permit Streamlining Act.
TCC Section 9141 currently contains application submittal requirements and changes
are not required in this regard.
The law also clarifies and amends a number of density bonus procedures as follows:
(1) Prohibits local governments from requiring the preparation of an additional report
or study in order to review or approve a density bonus application. Cities may
require reasonable documentation to establish eligibility for a requested density
bonus, incentives, concessions, waivers, or reduced parking ratios, and eligibility
requirements have been modified slightly.
The TCC currently requires submittal of a pro forma to confirm that the
concession or incentive under the density bonus law is necessary. Language in
Section 9141 a(8) has been updated to conform to the current law, which requires
a pro forma verify incentives and waivers would result in "identifiable and actual
cost reductions to provide affordable housing".
(2) Clarifies that "each component of any density calculation, including base density
and bonus density, resulting in fractional units shall be separately rounded up to
the next whole number.
The TCC currently contains this language and no change is required.
(3) Clarifies that developers of density bonus projects may choose to accept no
increase in density yet still be eligible to receive incentives and development
standard waivers.
TCC Section 9123 currently contains the required language and only minor
changes have been made to this section related to necessary findings to deny
incentives and waivers.
City Council Report
October 3, 2017
CA 2017-006
Page 4
Assembly Bill (AB) 2556
This bill is primarily a clean-up bill to clarify provisions related to replacement housing,
when affordable housing units are demolished to make way for a new housing
development. The bill requires that projects using a density bonus "replace each unit
that currently exists or existed in the past five years and is or was occupied by low
income or very low-income households in the past five years. The law recognizes that
reliable information about former occupants is not always available, so in the absence of
that information, this legislation presumes that lower income occupants lived in those
units in the same proportion as the overall percentage of lower income occupants in the
jurisdiction and is based on the US Department of Housing and Urban Development's
Comprehensive Housing Affordability Strategy database.
A new section in the TCC, 9121(e), has, been added to address this legislation.
Assembly Bill (AB) 1934
This bill added Section 65915.7 to the Government Code and provides for a commercial
"development bonus" when the project applicant for a commercial development partners
with an affordable housing developer to provide affordable housing. The bill's author
explained that "AB 1934 seeks to marry two (2) needs: (a) the state's need for
affordable housing and (b) local government's desire for increased revenues, by
encouraging non-traditional housing developers to enter the market and think outside
the box in their developments."
The affordable housing developer would be eligible to receive bonuses, incentives and
waivers provided under Gov. Code Section 65915 for qualifying projects, but the
commercial developer could also receive a "development bonus" which means
incentives agreed upon between the commercial developer and the local government,
including but not limited to modifications to maximum allowable intensity, maximum floor
area ratio, maximum height limits, minimum parking requirements, upper floor
accessibility regulations, and zoning or land use regulations. This assembly bill
contains a sunset provision stating that it will remain in effect until January 1, 2022.
TCC Section 9121(f) has been added to address this legislation.
Assembly Bill (AB) 744
A new provision has been added which reduces the parking ratio for affordable housing
developments that are located within one-half mile of a major transit stop to 0.5 spaces
per unit, or 0.3 spaces per unit for a development providing housing for residents with
physical or mental disabilities.
TCC Section 9131(1) has been added to address this legislation.
City Council Report
October 3, 2017
CA 2017-006
Page 5
Other Revisions
Other miscellaneous clerical revisions have been made that address outdated language
in the ordinance. These include removing the "Tustin Community Redevelopment
Agency", from the ordinance as it was dissolved *in 2012, and other minor changes.
Proposed Code Amendment 2017-006
All of the referenced legislation is intended to advance the State's goals to provide
housing to accommodate California's growing population and to meet current and future
needs for affordable and special needs housing. The California Department of Housing
and Community Development (HCD), in its statewide housing assessment, states that
housing production has not kept pace with demand, leading to higher housing costs. It
further notes that overall home ownership rates are at their lowest since the 1940s, a
majority of renters pay more than thirty (30) percent of their income toward rent and the
State's homeless population is disproportionate to its overall population.
The proposed ordinance amendment revises TCC Article 9 (Land Use), Chapter 1, in its
entirety, related to density bonuses in order to implement new state mandates. The
proposed amendments include the new provisions of Sections 65915 and 65915.7 of
the Government Code. Attachment B (Ordinance 1484) provides the draft ordinance in
finalized format and Attachment C is a redline version which compares the existing to
the proposed text. Attachment D provides an overview of how density bonuses are
applied to various projects.
On September 12, 2017, the Planning Commission adopted Resolution 4348
recommending that the City Council adopt Draft Ordinance No.1484, amending Article 9,
Chapter 1 of the TCC related to incentives for the development of affordable housing
(density bonus).
GENERAL PLAN CONSISTENCY
The proposed amendments are consistent with the Tustin General Plan in that they
comply with the following goals and policies:
Housing Element Goal 1 to provide an adequate supply of housing to meet the
need for a variety of housing types and the diverse socio-economic needs of all
community residents.
Policy 1.2: Pursue smart growth principles by supporting the construction of
higher density housing, affordable housing, and mixed use development (the
vertical and horizontal integration of commercial and residential uses) in
proximity to transit, services, shopping, schools, senior centers and recreational
facilities, where possible.
City Council Report
October 3, 2017
CA 2017-006
Page 6
Policy 1.4: Preserve affordable units, where possible, through actions such as
the maintenance of a mobile home park zone, restrictions on R-3 zone uses to
preserve the multiple family residential characters, facilitate resident access to
funding sources for preservation of low income and assisted housing.
Policy 1.7: Utilize various resources, where feasible, to assist in creating
opportunities which will expand opportunities for development of affordable
housing in the community.
Policy 1.11: Encourage the availability of affordable housing for special needs
households, including large, low-income families. Special needs households
include the elderly, large families, female -headed households with children,
households with a disabled person and the homeless.
Policy 1.12: Encourage incentives to assist in the preservation and 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 including continuing to make sure of the City's membership
in the California Statewide Communities Development Authority to provide
opportunities for developer assistance in pre -development and development
financing of affordable housing programs; 4) flexibility in zoning or development
standards; and 5) other financial incentives using a variety of special State and
Federal grand and housing programs. The new State statutes contain mandatory
provisions which the City must implement, whether or not it adopts its own
ordinance, therefore the amendment does not create a new land use regulation.
ENVIRONMENTAL:
The proposed Ordinance is not subject to the California Environmental Quality Act
(CEQA) pursuant to California Code of Regulations, Title 14, Chapter 3, Sections 15060
(c) (2) (the activity will not result in a direct or reasonably foreseeable indirect physical
change in the environment) and 15060(c)(3) (the activity is not a project as defined in
Section 15378) because it has no potential for resulting in a physical change to the
environment, directly or indirectly. The revision to TCC Chapter 1, Sections 9111 et
seq., will not result in any physical development in and of itself, and any future
development which utilizes these provisions will require CEQA review specific to the site
and proposed development. In addition, the new State statutes contain mandatory
provisions which the City must implement, whether or not it adopts its own ordinance,
therefore the amendment does not create a new land use regulation.
City Council Report
October 3, 2017
CA 2017-006
Page 7
IA� Lys/
Elaine Dove, AICP, RLA
Senior Planner
Attachments:
Elizabeth A. Binsack
Director of Community Development
A. Planning Commission Resolution No. 4348
B. Draft Ordinance No. 1484 (Code Amendment 2017-006)
C. Existing Chapter 1 of Article 9 of the Tustin City Code with redlined changes
D. Examples of Density Bonus Applications
ATTACHMENT A
Planning Commission Resolution No. 4348
RESOLUTION NO. 4348
A RESOLUTION OF THE PLANNING COMMISSION OF
THE CITY OF TUSTIN, CALIFORNIA, RECOMMENDING
THAT THE CITY COUNCIL ADOPT ORDINANCE NO.
1484, AMENDING TUSTIN CITY CODE ARTICLE 9,
CHAPTER 1, IN ITS ENTIRETY, RELATING TO
INCENTIVES FOR THE DEVELOPMENT OF
AFFORDABLE HOUSING.
The Planning Commission does hereby resolve as follows:
A. That the State of California identifies affordable housing and special needs
housing as a statewide priority. The legislature has created new
incentives to facilitate and expedite housing production, Recent legislation
expands prior State law requiring local agencies to grant density bonuses
and development incentives, concessions and waivers to reduce the cost
of providing affordable housing.
B. That on September 28, 2016, Governor Brown signed Assembly Bills (AB)
744, AB 2501, AB 2556, AB 2442 and AB 1934, to amend Government
Code Sections 65915-65915.7 (State Density Bonus Law), which allows
more dwelling units than otherwise allowed on a site in exchange for
providing affordable housing within their projects.
C. That Tustin City Code (TCC), Article 9, Chapter 1 contains provisions for
density bonus and development concessions, incentives and waivers for
affordable housing in accordance with prior State law and this amendment
will update the TCC to comply with current State law pursuant to
Assembly Bills (AB) 744, AB 2501, AB 2556, AB 2442, and AB 1934, as
codified in Government Code Sections 65915-65915.7.
D. That on September 12, 2017, a public hearing was duly noticed, called,
and held on Code Amendment 2017006 by the Planning Commission.
E. That the proposed amendments are consistent with the Tustin General
Plan in that they comply with the following goals and policies:
Housing Element Goal 1: To provide an adequate supply of housing to meet
the need for a variety of housing types and the diverse socio-economic
needs of all community residents.
Policy 1.2: Pursue smart growth principles by supporting the construction of
higher density housing, affordable housing, and mixed use development (the
vertical and horizontal integration of commercial and residential uses) in
proximity to transit, services, shopping, schools, senior centers and
recreational facilities, where possible.
Resolution No. 4348
Page 2
Policy 1.4: Preserve affordable units, where possible, through actions such
as the maintenance of a mobile home park zone, restrictions on R-3 zone
uses to preserve the multiple family residential characters, facilitate resident
access to funding sources for preservation of low income and assisted
housing.
Policy 1.7: Utilize various resources, where feasible, to assist in creating
opportunities which will expand opportunities for development of affordable
housing in the community.
Policy 1.11: Encourage the availability of affordable housing for special
needs households, including large, low-income families. Special needs
households include the elderly, large families, female -headed households
with children, households with a disabled person and the homeless.
Policy 1.12: Encourage incentives to assist in the 'preservation and
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 including continuing to
make sure of the City's membership in the California Statewide
Communities Development Authority to provide opportunities for developer
assistance in pre -development and development financing of affordable
housing programs; 4) flexibility in zoning or development standards; and 5)
other financial incentives using a variety of special State and Federal grant
and housing programs.
F. That the amendment updates existing provisions pertaining to density bonus and
development concessions and adds provisions for development bonus, all of which
create incentives for production of new affordable and special needs housing,
thereby contributing to the health and welfare of underserved populations, including
lower income households, senior citizens, transitional foster youth, disabled
veterans and homeless person(s).
G. That the proposed amendments are consistent with Government Code Sections
65915-65915.7.
The Planning Commission hereby recommends that the City Council adopt
Ordinance No. 1484, amending Tustin City Code Article 9, Chapter 1 in its
entirety relating to Incentives for the Development of Affordable Housing, as
identified in Exhibit °A attached hereto. I
Resdution No. 4348
Page 3
PASSED, AND ADOPTED at a regular meeting of the Planning Commission of the City of
Tustin held on the 12th, day of September, 2.017. 1/
RYD -R TO, SMIiTH
Chairperson
EUZABETH A, BINSACK
Planning Commission Secretary
Exhibit A: Draft Ordinance 1484
Resolution No. 4348
Page 4
STATE OF CALIFORNIA
COUNTY OF ORANIGE
CITY OF TU TIN
1, Elizabeth A. Binsack, the undersigned, hereby certify that. I am the Planning Commission
Secretary of the City of Tustin, California; that Resolution No. 4348 was passed and
I
adopted at a regiullar meefing of the Tustin Planning Commission, held on the 12"' day of
September,, 2017,
PLANNING COMMISSIONER AYES,:
i
PLANNING COMMISSIONER NOES'
PLANNING COMMISSIONER ABSTAINED:
PLANNING COMMISSIONER ABSENT;
ELIZABETH A. BIN SACK.
Planning Commission Secretary
Kozak, Lumbard, Mason, Smitb, Thompson (5)
E
ATTACHMENT B
Draft Ordinance No. 1484
(Code Amendment 2017-006)
DRAFT
ORDINANCE NO. 1484
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF TUSTIN, CALIFORNIA, AMENDING TUSTIN CITY
CODE ARTICLE 9, CHAPTER 1, IN ITS ENTIRETY
RELATING TO INCENTIVES FOR THE DEVELOPMENT
OF AFFORDABLE HOUSING.
The City Council of the City of Tustin does hereby ordain as follows:
Section 1. The City Council finds and determines as follows:
A. That the State of California identifies affordable housing and special needs
housing as a statewide priority. The legislature has created new incentives to
facilitate and expedite housing production. Recent legislation expands prior
State law requiring local, agencies to grant density bonuses and development
incentives, concessions and waivers to reduce the cost of providing affordable
housing.
B. That on September 28, 2016, Governor Brown signed Assembly Bills AB 744,
AB 2501, AB 2556, AB 2442 and AB 1934, to amend Government Code
Sections 65915-65915.7 (State Density Bonus Law), which allows more
dwelling units than otherwise allowed on a site in exchange for providing
affordable housing within their projects.
C. That Tustin City Code (TCC), Article 9, Chapter 1 contains provisions for density
bonus and development concessions, incentives and waivers for affordable
housing in accordance with prior State law and this amendment will update the
TCC to comply with current State law pursuant to Assembly Bill (AB) 744, AB
2501, AB 2556, AB 2442, and AB 1934 as codified in Government Code
Sections 65915-65915.7.
D. That on September 12, 2017, the Planning Commission adopted Resolution No.
4348, and recommended that the City Council adopt Ordinance No. 1484,
approving CA 2017-006 to amend Article 9, Chapter 1, in its entirety, relating to
Incentives for the Development of Affordable Housing.
E. That on October 3, 2017, a public hearing was duly noticed, called, and held on
Code Amendment 2017-006 by the City Council
F. That the proposed amendments are consistent with the Tustin General Plan in
that they comply with the following goal:
Housing Element Goal 1 to provide an adequate supply of housing to meet
the need fora variety of housing types and the diverse socio-economic
needs of all community residents.
Ordinance No. 1484
Page 2
Policy 1.2: Pursue smart growth principles by supporting the construction of
higher density housing, affordable housing, and mixed use development (the
vertical and horizontal integration of commercial and residential uses) in
proximity to transit, services, shopping, schools, senior centers and
recreational facilities, where possible.
Policy 1.4: Preserve affordable units, where possible, through actions such
as the maintenance of a mobile home park zone, restrictions on R-3 zone
uses to preserve the multiple family residential characters, facilitate resident
access to funding sources for preservation of low income and assisted
housing.
Policy 1.7: Utilize various resources, where feasible, to assist in creating
opportunities which will expand opportunities for development of affordable
housing in the community.
Policy 1.11: Encourage the availability of affordable housing for special
needs households, including large, low-income families. Special needs
households include the elderly, large families, female -headed households
with children, households with a disabled person and the homeless.
Policy 1.12: Encourage incentives to assist in the preservation and
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 including continuing to
make sure of the City's membership in the California Statewide
Communities Development Authority to provide opportunities for developer
assistance in pre -development and development financing of affordable
housing programs; 4) flexibility in zoning or development standards; and 5)
other financial incentives using a variety of special State and Federal grand
and housing programs.
G. That the proposed amendments are consistent with Government Code Sections
65915-65915.7.
H. That the proposed code amendment is not subject to the California
Environmental Quality Act (CEQA) pursuant to California Code of Regulations,
Title 14, Chapter 3, Sections 15060 (c) (2) (the activity will not result in a direct
or reasonably foreseeable indirect physical change in the environment) and
15060(c)(3) (the activity is not a project as defined in Section 15378) because it
has no potential for resulting in a physical change to the environment, directly or
indirectly and will not result in any physical development in and of itself. Any
future development which utilizes these provisions will require CEQA review
specific to the site and proposed development. In addition, the new State
Ordinance No. 1484
Page 3
statutes contain mandatory provisions which the City must implement, whether
or not it adopts its own ordinance, therefore the amendment does not create a
new land use regulation.
Section 2. Section 9111 PURPOSE AND INTENT of Part 1 of Chapter 1 of Article 9
of the Tustin City Code is hereby amended to read as follows:
The purpose of this Chapter is to provide incentives for the production of
housing for very low-, low-, moderate -income, senior citizens, transitional
foster youth, disabled veterans and homeless persons in accordance with
California Law pertaining to density bonuses. In addition, it contains
provisions for a density bonus or development incentive/concession when a
child care facility is to be included in an affordable housing development, or
when land is donated for affordable housing under specified conditions. 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 area identified as the "MCAS Tustin
Specific Plan." Sections of the Government Code referenced in this Chapter
and application forms for complying with this Chapter, shall be made
available to the public.
Section 3. Section 9112 DEFINITIONS of Part 1 of Chapter 1 of Article 9 of the
Tustin City Code is hereby amended to read as follows:
Whenever the following terms are used in this Chapter, they shall have the
meaning established by this section:
"Affordable Housing Cost", means as defined in Health and Safety Code
Section 50052.5, The term applies to for -sale units. In the Housing Incentive
Agreement, in its sole discretion, the City or the Housing Authority, as
applicable, shall exercise the options specified in Section 50052.5(b)(3)
and/or (4), and if the Department of Housing and Community Development
adopts regulations pursuant to Section 50052.5(c), the City or the Housing
Authority shall consider the regulations for purposes of determining
Affordable Housing Cost.
"Specific Adverse impact" means a significant, quantifiable, direct or
unavoidable impact based on objective, identified written public health or
safety standards, policies, or conditions as they existed on the date the
application was deemed complete.
"Affordable Rent" means as defined in Health and Safety Code Section
50053. The term applies to rental units.
Ordinance No. 1484
Page 4
"Applicant" means a developer or owner who desires to construct five (5) or
more dwelling units.
"Child Care Facility" means a child day care facility other than a family day
care home, including, but not limited to, infant centers, preschools, extended
day care facilities, and school age child care centers.
"Common Interest Development" means a community apartment project, a
condominium project, a planned development, or a stock cooperative as
defined in Section 1351 of the Civil Code.
"Concession or Incentive" means the concession(s) and incentive(s) as
specified in Government Code Section 65915(k) and Section 9123.
"Density Bonus" means a density increase over the otherwise maximum
allowable residential density, as 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.
"Density Bonus Units" means those residential units granted pursuant to the
provisions of this Chapter which exceed the otherwise maximum allowable
residential density for the development site. When calculating the number of
permitted density bonus units, any fractions of units shall be rounded to the
next whole number.
"Development Standards includes a site or construction conditions,
including, but not limited to, a height limitation, a setback requirement, a floor
area ratio, an onsite open space requirement, or a parking ratio that applies
to a residential development pursuant to any ordinance, general plan
element, specific plan, charter, or other local condition, law, policy,
resolution, or regulation.
"Director" means the City's Director of Community Development or designee.
"Housing Authority" means the Tustin Housing Authority.
"Housing Development" means construction projects consisting of five (5) or
more residential units, including single-family, multi -family units, and mixed-
use developments for sale or for rent. "Housing development" also includes a
subdivision or common interest development, approved by the City and
consists of residential units or unimproved residential lots and either a
project to substantially rehabilitate and convert an existing commercial
building to residential use or the substantial rehabilitation of an existing
multifamily dwelling, as defined in subdivision (d) of Section 65863.4 of. the
Government Code, where the result of the rehabilitation would be a net
increase of at least five (5) or more residential units. The residential units
shall be on contiguous sites that are the subject of one development
application, but do not have to be based upon individual subdivision maps or
parcels. The density bonus shall be permitted in geographic areas of the
Ordinance No. 1484
Page 5
housing development other than the areas where the units for the lower
income households are located.
"Housing Incentive Agreement" means a legally binding agreement between
an applicant and the City and/or the Housing Authority to ensure that the
requirements of this Chapter are satisfied. The agreement among other
things shall establish the number of targeted units, size, location, terms and
conditions of affordability, production schedule, and may be part of a larger
disposition and development or regulatory agreement.
"Lower Income Household" means households whose income does not
exceed the lower 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 Health and
Safety Code.
"Major Transit Stop" means a site containing an existing rail station or the
intersection of two or more major bus routes with a frequency of service
interval of 15 minutes or less during the morning and afternoon peak
commute periods, and includes any major transit stop that is included in an
applicable regional transportation plan.
"Maximum Allowable Residential Density" means the 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 project. 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 excludes the density bonus allowed by
this Chapter.
"Non -Restricted Unit" means all units within a housing development
excluding the targeted units.
"Persons and Families of Moderate Income" means persons and families of
low or moderate income whose income exceeds the income limit for lower
income households and as defined in Health and Safety Code Section
50093.
"Persons and families of Low or Moderate Income" means persons and
families whose income does not exceed one hundred twenty (120) percent of
area median income adjusted for family size by the State Department of
Housing and Community Development in accordance with adjustment
factors adopted and amended from time to time by the United States
Department of Housing and Urban Development pursuant to Section 3 of the
United States Housing Act of 1937.
"Senior Citizen" means, a person sixty-two (62) years of age or older, or fifty-
five (55) years of age living in a senior citizen housing development.
Ordinance No. 1484
Page 6
"Senior Citizen Housing Development" means, as more fully defined in Civil
Code Section 51.3 and 51.12, a residential development developed,
substantially rehabilitated, or substantially renovated for senior citizens that
has at least thirty-five (35) dwelling units.
"Special Needs Housing" means any housing, including supportive housing,
intended to benefit, in whole or in part, persons identified as having special
needs relating to any of the following: mental health; physical disabilities;
developmental disabilities, including, but not limited to intellectual disability,
cerebral palsy, epilepsy, and autism; and risk of homelessness, or housing
intended to meet the housing needs of persons eligible for mental health
services funded in whole or in part by the Mental Health Services Fund,
created by Section 5890 of the Welfare and Institutions Code.
"Targeted Unit(s)" means a dwelling unit(s) within a housing development
which will be reserved for sale or rent to, and is made available at an
affordable rent or affordable housing 'cost to very low, low, or moderate
households, or is(are) units in a senior housing development.
"Unobstructed Access" means a resident is able to access a major transit
stop without encountering natural or constructed impediments. "Very Low
Income Households" means households whose income does not exceed the
very low 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.
Section 4. Section 9121 IMPLEMENTATION of Part 1 of Chapter 1 of Article 9 of the
Tustin City Code is hereby amended to read as follows:
A housing development meeting the requirements of this section is eligible
for a density bonus. The granting of a density bonus shall not be interpreted,
in and of itself, to require a general plan amendment, zoning change, or
other discretionary approval.
(a) The City shall grant one (1) density bonus, the amount of which shall
be as specified in Section 9122, concession(s) or incentive(s), as
described in Section 9123, waivers or reductions of development
standards, as described in Section 9124, and parking ratios, as
described in Section 9131(h), when an applicant seeks and agrees to
construct a housing development, excluding any units permitted by
the density bonus awarded pursuant to this Chapter, that will contain
at least any one (1) of the following:
(1) Ten (10) percent of the total units of the housing development as
targeted units affordable to lower income households; or
(2) Five (5) percent of the total units of the housing development as
targeted units affordable to very low income households; or
Ordinance No. 1484
Page 7
(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 twenty (20) percent of the number of senior
housing units; or
(4) Ten (10) percent of the total units in a common interest
development for persons and families of moderate income,
provided that all units in the development are offered to the
public for purchase.
(5) Ten percent of the total units of a housing development for
transitional foster youth as defined in Section 66025.9 of the
Education Code, disabled veterans, as defined in Section 18541
of the Government Code, or homeless persons, as defined in the
federal McKinney-Vento Homeless Assistance Act (42 U.S.C.
Sec. 11301 et seq.). The units described in this subparagraph
shall be subject to a recorded affordability restriction of 55 years
and shall be provided at the same affordability level as very low
income units.
(6) For purposes of calculating the amount of the density bonus
pursuant to Section 9121, the applicant who requests the density
bonus pursuant to this subsection shall elect whether the bonus
shall be awarded on the basis of subparagraph (1), (2), (3), (4) or
(5) of this subsection. -
(7) For the purposes of this Section, "total units" or "total dwelling
units" do not include units added by a density bonus awarded
pursuant to this Section or any local law granting a greater
density bonus.
(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), up to 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:
Ordinance No. 1484
Page 8
(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 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 City 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.
(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.
(c) When an applicant agrees to construct a housing development that
conforms to the requirements of Section 9121(a) and includes a child
Ordinance No. 1484
Page 9
care facility that will be located on the premises of, as part of, or
adjacent to, the project, the following shall apply:
(1) The City shall grant either of the following, unless it finds, based
upon substantial evidence, that the community has adequate
child care facilities:
(i) An additional density bonus that is an amount of square feet
of residential space that is equal to or greater than the
amount of square feet in the child care facility, or
(ii) An additional concession or incentive that contributes
significantly to the economic feasibility of the construction of
the child care facility.
(2) The City shall require, as a condition of approving the housing
development that the following occur:
(i) The child care facility shall remain in operation for a period of
time that is as long as or longer than the period of time
during which the targeted units are required to remain
affordable pursuant to Section 9131(d) and (e).
(ii) Of the children who attend the child care facility, the children
of very low income households, low income households, or
families of moderate income shall equal a percentage that is
equal to or greater than the percentage of dwelling units that
are required for very low income households, low income
households, or families of moderate income pursuant to
Section 9121(a).
(d) When an applicant to convert apartments to a condominium project
pursuant to Section 9274 of this Code agrees to provide at least 33
percent of the total units of the proposed condominium project to
persons and families of low or moderate income, or 15 percent of the
total units of the proposed condominium project to lower income
households, and agrees to pay reasonably necessary administrative
costs incurred by the City, the City shall grant either of the following,
unless the apartments proposed for conversion constitute a housing
development for which a density bonus or other incentives were
previously provided under Government Code Section 65915:
(1) a density bonus to increase the number of units by 25 percent
over the number of apartments within the existing structure(s)
proposed for conversion; or
(2) other incentives of equivalent financial value, which may include
the reduction or waiver of requirements which the City may
otherwise apply as conditions of conversion approval.
Ordinance No. 1484
Page 10
(3) The City may place such reasonable conditions on the granting
of a density bonus or other incentives of equivalent financial
value 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.
(4) The application to convert apartments to a condominium project
may be submitted to the City for preliminary review prior to
submittal of formal request for subdivision map approvals
pursuant to Section 9141. The City shall notify applicant in
writing of the manner in which City will comply with this
subsection (d) within 90 days of receipt of a written proposal.
(5) An applicant shall be ineligible for a density bonus or other
incentives or concessions under this subsection (d) if the
apartment complex proposed for conversion includes a parcel(s)
on which rental dwelling units are or, if the dwelling units have
been vacated or demolished in the five-year period preceding
the application, have been subject to a recorded covenant,
ordinance or law that restricts rents to a level affordable to
persons and families of lower or very low income; are subject to
any form of rent or price control through the City's valid exercise
of its police power; or are occupied by lower or very low income
household unless the proposed condominium project replaces
those units in accordance with Section 65915(c)(3)(B) of the
Government Code and either of the following applies:
(i) The proposed condominium project, inclusive of the units
replaced, contains affordable units at the percentages set
forth in Section9121(a), or
(ii) Each unit in the development, exclusive of manager's unit or
units, is affordable to, and occupied by, either a lower or very
low income household.
(e) When an applicant for a commercial development has entered into an
agreement for partnered housing as described in paragraph (2) below,
the City shall grant a development bonus to the commercial developer
in accordance with Section 65915.7 of the Government Code and the
following shall apply:
(1) Housing shall be constructed either on the site of the commercial
development or on a site that meets the following criteria:
(i) Within the City of Tustin limits,
(ii) In close proximity to public amenities such as schools and
employment centers,
Ordinance No. 1484
Page 11
(iii) Within one-half mile of a major transit stop, and
(2) The agreement for partnered housing shall be between the
commercial developer and the housing developer, shall identify
how the commercial developer will contribute affordable housing,
and shall be approved by the City.
(3) Affordable housing may be contributed by the commercial
developer in one of the following manners:
(i) The commercial developer may directly build the units.
(ii) The commercial developer may donate a portion of the site
or property elsewhere to the affordable housing developer
for use as a site for affordable housing.
(iii) The commercial developer may make a cash payment to the
affordable housing developer that shall be used toward the
cost of constructing the affordable housing project.
(4) In order to qualify for a development bonus under this section, a
commercial developer shall partner with a housing developer that
provides at least 30 percent of the total units for low-income
households or at least 15 percent of the total units for very -low
income households.
(5) A development bonus pursuant to this section shall not include a
reduction or waiver of any City requirement for payment of any
fee payable by a commercial developer for the promotion or
provision of affordable housing.
(6) The development bonus granted to the commercial developer
shall mean incentives, mutually agreed upon by the developer
and the City and may include any of the following:
(i) Up to a 20 -percent increase in maximum allowable
intensity in the General Plan.
(ii) Up to a 20 -percent increase in maximum floor area ratio.
(iii) Up to a 20 -percent increase in maximum height
requirements.
(iv) Up to a 20 -percent reduction in minimum parking
requirements.
(v) Use of a limited-use/limited-application elevator for upper
floor accessibility.
(vi) An exception to the zoning ordinance or other land use
regulation.
Ordinance No. 1484
Page 12
(vii) Other allowances or incentives offered to developers by the
City pursuant to law or regulation.
(7) If the developer of the affordable units does not commence with
construction of those units in accordance with the timelines
provided in the agreement for partnered housing, the City may
withhold certificates of occupancy for the commercial
development under construction until the developer has
completed construction of the affordable units.
(8) For purposes of this section, "partner" shall mean formation of a
partnership, limited liability company, corporation or other entity
recognized by the State of California in which the commercial
development applicant and the affordable housing developer are
each partners, members, shareholders or other participants, or a
contract or agreement between a commercial development
applicant and affordable housing developer for the development
of both the commercial and affordable housing properties.
(9) This section shall be applicable to development projects
submitted prior to January 1, 2022. As of January 1, 2022,
Section 9121(e) is repealed in accordance with Section 65915.7
of the Government Code, as may be amended.
(f) A proposed housing development which includes a parcel or parcels
which rental dwelling units are or, if the dwelling units have been
vacated or demolished in the five (5) year period preceding the
application, have been subject to a recorded covenant, ordinance, or
law that restricts rents to persons or families of lower or very low
income shall be ineligible for a density bonus, or any other incentives
or concessions under this Part unless the proposed housing
development replaces those units in accordance with Government
Code Section 65915(c)(3)(B), and either of the following applies:
(1) The proposed housing development, inclusive of the units
replaced pursuant to this paragraph, contains affordable units at
the percentages set forth in Section 9121(a), or
(2) Each unit in the development, exclusive of a manager's unit or
units, is affordable to, and occupied by, either a lower or very
low income household.
Section 5. Section 9122 Density Bonus of Part 1 of Chapter 1 of Article 9 of the
Tustin City Code is hereby amended to read as follows:
Ordinance No. 1484
Page 13
(1) The amount of density bonus to
according to the amount by which
exceeds the percentage established
which the applicant is entitled shall vary
the percentage of affordable housing units
in Section 9121(a) as follows:
Targeted Percentage Density Additional Additional
Group of Bonus Targeted Density
Targeted Units Bonus
Units
(excluding
Density
Bonus Units)
i
Low -Income' 10 percent 20 Each 1 percent increase 1.5 percent,
percent maximum 35 percent
Very Low Income I 5 percent _ 20 Each 1 percent increase 2.5 percent,
percent maximum 35 percent
Moderate Income' 10 percent 5 Each 1 percent increase 1.0 percent,
percent maximum 35 percent
Senior Citizen 20 NSA NSA
Housing4 percent
....... _.......... ... .... .. ........ m... ........ ._... __ ..
Transitional foster 1 10 percent 20
youth, disabled percent
veterans or
homeless person S5
Very Low Income 10 percent 15 Each 1 percent increase 1.0 percent,
under Land percent maximum 35 percent
Donation6
1 For housing development meeting the criteria of Section 9121(a)(1)
z For housing development meeting the criteria of Section 9121(a)(2)
s For housing development meeting the criteria of Section 9121(a)(3)
4 For housing development meeting the criteria of Section 9121(a)(4)
s For housing development meeting the criteria of Section 9121(a)(5)
6 For housing development meeting the criteria of Section 9121(b)
Ordinance No. 1484
Page 14
Section 6. Section 9123 INCENTIVES OR CONCESSIONS of Part 1 of Chapter 1 of
Article 9 of the Tustin City Code is hereby amended to read as follows:
(a) An applicant for a density bonus may submit to the City a proposal for
the specific concession(s) or incentive(s) that the applicant requests
pursuant to this Chapter, and may request a meeting with the City.
The City must grant the concession(s) or incentive(s) requested by the
applicant unless the City makes a written finding, based upon
substantial evidence, of any of the following:
(1) The concession or incentive does not result in identifiable and
actual cost reductions to provide for affordable housing costs or
for rents for the targeted units to be set as specified in Section
9131.
(2) The concession(s) or incentive(s) would have a specific adverse
impact upon public health and safety or the physical environment
or on any real property that is listed in the California Register of
Historical Resources and for which there is no feasible method to
satisfactorily mitigate or avoid the specific adverse impact
without rendering the development unaffordable to low- and
moderate- income households.
(3) The concession or incentive would be contrary to state or federal
law.
(b) The applicant shall be entitled to receive the following number of
concessions or incentives:
Targeted Group
Targeted Units
(Percent)
Maximum Incentives/Concessions
Very Low Income
5
1
10
2
15
3
Lower Income
10
1
20
2
30
3
Ordinance No. 1484
Page 15
Moderate Income
10
1
(Condominium only)
20
2
30
3
(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
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
declaratory of existing law.
Ordinance No. 1484
Page 16
Section 7. Section 9124 WAIVERS OR REDUCTIONS of Part 1 of Chapter 1 of
Article 9 of the Tustin City Code is hereby amended to read 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 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.
(b) The waiver or reduction shall be granted unless the City Council
adopts a written finding, based on substantial evidence, of either the
following:
1. The waiver or reduction of development standards would have a
specific adverse impact upon health, safety, or the physical
environment, and for which there is no feasible method to
satisfactorily mitigate or avoid the specific adverse impact.
2. The waiver or reduction of development standards would have a
specific adverse impact on any real property that is listed in the
California Register of Historical Resources.
Section 8. Section 9125 OPTIONAL ADDITIONAL ASSISTANCE of Part 1 of
Chapter 1 of Article 9 of the Tustin City Code is hereby amended to read
as follows:
The City may approve additional assistance to facilitate the inclusion of
more Targeted Units than are required by this Chapter. The City Council
may approve any of the following in its sole discretion, including, but not
limited to:
(a) A density bonus greater than that required in Section 9121 of this
Chapter.
(b) A proportionately lower density bonus than what is required by this
Chapter when the housing development does not meet the
requirements of this Chapter.
(c) Waived, reduced, or deferred planning, plan check, building permit
and/or development impact fees.
(d) Direct financial aid (e.g., housing set-aside funds, community
development block grant funds) in the form of a loan or a grant to
subsidize or provide low interest financing for on or off site
improvements, contribution to land, or construction costs.
Ordinance No. 1484
Page 17
Section 9. Section 9131 STANDARD REQUIREMENTS of Part 1 of Chapter 1 of
Article 9 of the Tustin City Code is hereby amended to read as follows:
(a) Targeted units shall be built on-site, and be integrated within the
housing development except those units built in conjunction with the
donation and transfer of land pursuant to Section 9121(b).
(b) Targeted units shall be constructed concurrently with non -restricted
units unless both the City and the applicant agree in the housing
incentive agreement described in Section 9142 to an alternative
schedule for development.
(c) Except for a senior citizen housing development, the number of
bedrooms of the targeted units shall be generally equivalent to the
bedroom mix of the non -restricted units of the housing development,
as determined by the director and embodied in a housing incentive
agreement. Notwithstanding the foregoing, the applicant may. include
a higher proportion of targeted units with more bedrooms than the
non -restricted units.
(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 fifty five (55)
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 units shall be set at an affordable rent. Owner -occupied
units shall be available at an affordable housing cost.
(e) An applicant shall agree to, and the City shall ensure that, the initial
occupant of all for -sale units that qualified the applicant for the award
of the density bonus are persons and families of very low, low or
moderate -income, as_ required, and that the units are offered at an
affordable housing cost. 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 City shall recapture any initial subsidy
and its proportionate share of appreciation, which shall then be
used within 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 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
Ordinance No. 1484
Page 18
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.
(f) The design and appearance of the targeted units shall be consistent
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.
(g) A housing incentive agreement shall be entered into between the
applicant and City and/or the Housing Authority to memorialize among
other things, the applicant's commitment to provide targeted 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
development, conditional use permits, etc.) for all housing
developments pursuant to this Chapter.
(h) Upon the request of the developer, the vehicular parking ratio,
inclusive of disabled access and guest parking, of a development
meeting the criteria of Section 9121(a), shall not exceed the following
ratios:
(i) Notwithstanding paragraph (h) above, if a development includes the
maximum percentage of low- or very low income units provided for in
Section 9122 and is located within one-half mile of a major transit stop
and there is unobstructed access to the major transit stop from the
development, the developer may request the City not impose a
vehicular parking ratio that exceeds 0.5 spaces per bedroom,
including handicapped and guest parking.
Ordinance No. 1484
Page 19
Q) If the development consists solely of rental units with an affordable
housing cost to low income families, exclusive of a manager's unit(s),
then the developer may request the City not impose a vehicular
parking ratio, including handicapped and guest parking that exceeds
the following ratios, if the development is:
Located within one-half mile of a major
transit stop with unobstructed access to
the major transit stop from the
development
Not to Exceed 0.5 spaces per unit
For -rent Senior Citizen Housing
Not to Exceed 0.5 spaces per unit
Development as defined in Section 9112,
and has either paratransit service or
unobstructed access, within one-half mile
to fixed bus route service that operates at
least eight times per day
Special Needs Housing, as defined in
Not to exceed 0.3 spaces per unit
Section 9112, and has either paratransit
service or unobstructed access, within
one-half mile to fixed bus route service
that operates at least eight times per day
(k) If the total number of parking spaces required for a development is
other than a whole number, the number shall be rounded up to the
next whole number. For purposes of this section, a development may
provide on-site parking through tandem parking or uncovered parking,
but not on -street parking.
(1) If the development meets the requirements of Section 9121, an
applicant may request parking incentives or concessions beyond
those provided in Section 9122. A request pursuant to this subdivision
shall not increase the number of incentives or concessions to which
the applicant is entitled pursuant to Section 9123(b).
(m) The City may, in its discretion, reduce or eliminate a parking
requirement for developments of any type in any. location.
(n) The City may impose a higher parking ratio not to exceed the ratio
described in Section 9131(h)(1) if, based on substantial evidence
found in a parking study prepared by the City within seven (7) years
preceding the proposed project and which includes an analysis of
parking availability, differing levels of transit access, walkability access
to transit services, the potential for shared parking, the effect of
Ordinance No. 1484
Page 20
parking requirements on the cost of market -rate and subsidized
developments, and the lower rates of car ownership for low- and very
low income individuals, including seniors and special needs
individuals. The City shall make findings, based on the parking study
supporting the need for a higher parking ratio.
Section 10. Section 9141 APPLICATION REQUIREMENTS AND REVIEW of Part 1 of
Chapter 1 of Article 9 of the Tustin City Code is hereby amended to read
as follows:
(a) An applicant proposing a housing development pursuant to this
Chapter, shall 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) Existing land uses on the property, including any existing rental
unit(s).
(2) A request for density bonus by specifying the code section of
which the density bonus shall be awarded.
(3) A description of the proposed housing development including the
total number of units, targeted units by income category, and
density bonus units bedroom mix.
(4) The zoning and general plan designations and assessor's parcel
number(s) of the project site.
(5) The location of the targeted units within the housing
development.
(6) The number of additional housing units requested as the density
bonus for the housing development.
(7) A vicinity map and preliminary site, floor, and elevation plans,
drawn to scale, including building footprints, driveway, and
parking layout.
(8) A description of any requested concession(s), incentive(s),
waiver(s), modified parking standards, and/or development
bonus requested and an explanation of why each is needed. In
requesting a concession, incentive, waiver, modified standard of
parking or waiver or reduction of development standards, the
applicant shall provide substantial facts in the form of a
development pro -forma that the waiver or modification will result
in identifiable and actual cost reductions. At a minimum, the
Ordinance No, 1484
Page 21
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 cash flow,
and return on investment and the actual cost reductions to be
achieved.
(9) If a density bonus is requested for a land donation, the
application shall show the location of the land to be dedicated
and provide evidence that each of the conditions included in
Section 9121(b) can be meta
(10) If an additional density bonus or concession or incentive is
requested for a child care facility, the application shall show the
location and square footage of the child care facility and provide
evidence that each of the conditions in Section 9121(c) can be
met.
(11) The applicant shall acknowledge in writing that a housing
incentive agreement is required.
(b) An application for a density bonus and/or concession or 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 9141(a) 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 for those housing
developments which require Planning Commission entitlements;
except that no approval shall be effective until the City or the Housing
Authority (as applicable) and applicant have executed a housing
incentive agreement.
(c) Within sixty (60) days of receipt of the preliminary application, the City
shall provide the applicant with a letter which identifies project issues
of concern and the proposed concession or incentive that the director
would recommend to the Planning Commission and City Council and
the procedures for compliance with this Chapter.
(d) Where the applicant proposes that the City provide optional additional
assistance as described in Section 9125 herein, the proposal shall be
considered by the Planning Commission for recommendation to the
City Council, or the Housing Authority where the Housing Authority
funds are requested, for their preliminary approval unless such
housing development does not require Planning Commission
entitlements in which case, the City Council or the Housing Authority,
as applicable, can authorize such assistance. A preliminary approval
shall indicate the City Council's approval of the proposal for
Ordinance No. 1484
Page 22
processing, but no optional additional assistance shall be deemed
approved until embodied in the housing incentive agreement.
Section 11. Section 9142 HOUSING INCENTIVE AGREEMENT of Part 1 of Chapter 1
of Article 9 of the Tustin City Code is hereby amended to read as follows:
(a) Once an application for a density bonus and/or concession or
incentive is approved pursuant to Section 9141(b), a housing
incentive agreement shall be prepared consistent with any conditions
of approval related thereto subject to review and approval as to form
by the City Attorney. The City (or the Housing Authority) approval and
execution responsibilities for such agreement shall be as identified in
the approval of the housing development application pursuant to
Section 9141(b). Where such identification is not made by the City
Council, such agreement shall be subject to approval by the City
Council.
(b) The final approval of any documents as required by the agreement
shall take place prior to or concurrent with 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 recorded with the Orange County Recorder
concurrent with the recording of the final map or within thirty days of
approval if a map is not processed and 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 targeted 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
housing cost.
(3) The location, unit sizes (square feet), and number of bedrooms
of targeted units.
(4) Affordability restrictions for low and very low income targeted
units for at least fifty five (55) years from the date the building(s)
is first occupied or a longer period of time if required by the
construction or mortgage financing assistance program,
mortgage insurance program, rental subsidy program.
(5) A schedule for completion and occupancy of the targeted units.
(6) A description of the concessions or incentive(s), or optional
additional assistance being provided by the City or the Housing
Authority.
Ordinance No, 1484
Page 23
(7) A description of remedies for breach of the agreement by either
party (the City may identity tenants or qualified purchasers as
third party beneficiaries under the agreement).
(8) Other provisions to ensure implementation and compliance with
this Chapter and State Law.
(d) In the case of for -sale housing developments or conversion of
apartments to a condominium project consistent with this Chapter, the
agreement shall provide for the following regarding the initial sale and
use of targeted units during the applicable use restriction period and
for the respective affordability period:
(1) Targeted units shall, upon initial sale, be sold to eligible very low
income households, low income households or persons and
families of moderate income consistent with this Chapter or as
approved by the City Council at an affordable housing cost or be
made available to qualified residents in a senior citizen housing
development.
(2) Targeted units shall be initially owner -occupied by eligible very
low, low income, or moderate income households, or by senior
citizens in the case of a senior citizen housing development or
mobile home park that limits residency based on age
requirements for housing for older persons.
(3) The agreement shall provide for the continued affordability of the
low income and very low income targeted units for the applicable
affordability period.
(4) The agreement shall provide for the recapture by the City of its
proportionate share of appreciation upon resale of moderate
income targeted units in accordance with this Chapter.
(e) In the case of rental housing developments, the agreement shall
provide for the following conditions governing the use of targeted units
during the affordability period:
(1) The rules and procedures for qualifying tenants, establishing
affordable rent, filling vacancies, and maintaining targeted 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.
Section 12: 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
Ordinance No. 1484
Page 24
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, at a regular meeting of the City Council of the City of Tustin
on this 3rd day of October, 2017.
DR. ALLAN BERNSTEIN
MAYOR
ATTEST:
ERICA N. RABE, CITY CLERK
APPROVED AS TO FORM:
DAVID E. KENDIG,
City Attorney
Ordinance No. 1484
Page 25
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF TUSTIN )
CERTIFICATION FOR ORDINANCE NO. 1484
Erica N. Rabe, 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. 1484
was duly and regularly introduced and read by title only at the regular meeting of the
City Council held on the 3rd day of October, 2017, and was given its second reading,
passed and adopted at a regular meeting of the City Council held on the 17th day of
October, 2017, by the following vote:
COUNCILPERSONS AYES:
COUNCILPERSONS NOES:
COUNCILPERSONS ABSTAINED:
COUNCILPERSONS ABSENT:
Erica N. Rabe, City Clerk
Published:
ATTACHMENT C
Existing Chapter 1 of Article 9
Of the
Tustin City Code with redlined changes
CHAPTER 1 - INCENTIVES FOR THE DEVELOPMENT OF AFFORDABLE HOUSING
PART 1 - GENERAL
9111 - PURPOSE AND INTENT
The purpose of this Chapter is to provide incentives for the production of housing for very low-, low-,
moderate -income, or -senior citizens, transitional foster youth, disabled veterans and homeless persons in
accordance with California Law pertaining to density bonuses. In addition, it contains provisions for a
density bonus or development incentive/concession when a child care facility is to be included in an
affordable housing development, or when land is donated for affordable housing under specified
conditions. 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 area identified as the "MCAS Tustin Specific Plan." Sections of the California Government
Code referenced in this Chapter and application forms for complying with this Chapter, shall be made
available to the public.
• . . - lla.i
9112 - DEFINITIONS
Whenever the following terms are used in this Chapter, they shall have the meaning established by
this section:
"Affordable Housing Cost", means as defined in Health and Safety Code Section 50052.5. The
term applies to for -sale units. In the Housing Incentive Agreement, in its sole discretion, the City or
AgeRG he Housing Authority, as applicable, shall exercise the options specified in Section
50052.5(b)(3) and/or (4), and if the Department of Housing and Community Development adopts
regulations pursuant to Section 50052.5(c), the City or the Housing Authority
shall consider the regulations for purposes of determining Affordable Housing Cost.
"Specific Adverse impact" means a significant, auantifiable, direct or unavoidable impact based
on objective, identified written public health or safety standards, policies, or conditions as they
existed on the date the application was deemed complete.
"Affordable Rent" means as defined in Health and Safety Code Section 50053. The term applies
to rental units.
"Ager;Gy" moans the Tustin Cnmm, inity Re develepmont AgeRG\/
"Applicant" means a developer or owner who desires to construct five (5) or more dwelling units.
"Child Care Facility" means a child day care facility other than a family day care home,
including, but not limited to, infant centers, preschools, extended day care facilities, and school age
child care centers.
"Common Interest Development" means a community apartment project, a condominium
project, a planned development, or a stock cooperative as defined in Section 1351 of the Civil Code.
1258493.1 Page i
"Concession or Incentive" means the concession(s) and incentive(s) as specified in California
Government Code Section 65915(k) and Section 9123.
"Density Bonus" means a density increase over the otherwise maximum allowable residential
density, as 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.
"Density Bonus Units" means those residential units granted pursuant to the provisions of this
Chapter which exceed the otherwise maximum allowable residential density for the development
site. When calculating the number of permitted density bonus units, any fractions of units shall be
rounded to the next whole number.
"Development Standards" includes a site or construction conditions, including, but not limited to,
a height limitation, a setback requirement, a floor area ratio, an onsite open space requirement, or a
parking ratio that applygpplies to a residential development pursuant to any ordinance, general plan
element, specific plan, charter, or other local condition, law, policy, resolution, or regulation.
"Director" means the City's Director of Community Development or designee.
"Housing Authority" means the Tustin Housing Authority.
"Housing Development" means construction projects consisting of five (5) or more residential
units, including single -family -arid multi -family units, and mixed-use developments for sale or for rent.
"Housing development" also includes a subdivision or common interest development, approved by
the City and consists of residential units or unimproved residential lots and either a project to
substantially rehabilitate and convert an existing commercial building to residential use or the
substantial rehabilitation of an existing multifamily dwelling, as defined in subdivision (d) of Section
65863.4 of the Government Code, where the result of the rehabilitation would be a net increase of at
least five (5) or more residential units. The residential units shall be on contiguous sites that are the
subject of one development application, but do not have to be based upon individual subdivision
maps or parcels. The density bonus shall be permitted in geographic areas of the housing
development other than the areas where the units for the lower income households are located.
"Housing Incentive Agreement" means a legally binding agreement between an applicant and
the City and/or the ageRGyHousing Authority to ensure that the requirements of this Chapter are
satisfied. The agreement among other things shall establish the number of tar-gettar eted units, size,
location, terms and conditions of affordability, production schedule, and may be part of a larger
disposition and development or regulatory agreement.
"Lower Income Household" means households whose income does not exceed the lower
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 State
Galiforaia Health and Safety Code.
"Major Transit Stop" means a site containing an existing rail station or the intersection of two or
more major bus routes with a frequency of service interval of 15 minutes or less during the morning
and afternoon peak commute periods, and includes any manor transit stop that is included in an
applicable regional transportation plan.
"Maximum Allowable Residential Density" means the 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 project. 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 excludes the density bonus
allowed by this Chapter.
"Non -Restricted Unit" means all units within a housing development excluding the
taFgettargeted units.
1258493.1 Page 1
"Persons and Families of Moderate Income" means persons and families of low or moderate
income whose income exceeds the income limit for lower income households and as defined in
Health and Safety Code Section 50093.
"Persons and families of Low or Moderate Income" means persons and families whose income
does not exceed one hundred twenty (120) percent of area median income adjusted for family size
by the State Department of Housing and Community Development in accordance with adjustment
factors adopted and amended from time to time by the United States Department of Housing and
Urban Development pursuant to Section 8 of the United States Housing Act of 1937.
"Senior Citizen" means, a person sixty-two (62) years of age or older, or fifty-five (55) years of
age living in a senior citizen housing development.
"Senior Citizen Housing Development" means, as more fully defined in Civil Code Section 51.3
and 51.12, a residential development developed, substantially rehabilitated, or substantially
renovated for senior citizens that has at least thirty-five (35) dwelling units.
"Special Needs Housing" means any housing, including supportive housing, intended to
benefit, in whole or in part, persons identified as having special needs relating to any of the following:
mental health; physical disabilities; developmental disabilities, including, but not limited to intellectual
disability, cerebral palsy, epilepsy, and autism; and risk of homelessness, or housing intended to
meet the housing needs of persons eligible for mental health services funded in whole or in part by
the Mental Health Services Fund, created by Section 5890 of the Welfare and Institutions Code.
"Targeted Unit(s)" means a dwelling unit(s) within a housing development which will be
reserved for sale or rent to, and is made available at an affordable rent or affordable housing cost to
very low, low, or moderate households, or is(are) units in a senior housing development.
"Unobstructed Access" means a resident is able to access a major transit stop without
encountering natural or constructed impediments. "Very Low Income Households" means
households whose income does not exceed the very low 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 - IMPLEMENTATION AND INCENTIVES
9121 - IMPLEMENTATION
A housing development meeting the requirements of this section is eligible for a density bonus. The
granting of a density bonus shall not be interpreted, in and of itself, to require a general plan amendment,
zoning change, or other discretionary approval.
(a) The City shall grant one (1) density bonus, the amount of which shall be as specified in Section
9122, aha concession(s) or incentive(s), as described in Section 9123, waivers or reductions
of development standards, as described in Section 9124, and parking ratios, as described in
Section 9131(h), when an applicant seeks and agrees to construct a housing development,
excluding any units permitted by the density bonus awarded pursuant to this Chapter, that will
contain at least any one (1) of the following:
(1) Ten (10) percent of the total units of the housing development as targettargeted units
affordable to lewlower income households; or
(2) Five (5) percent of the total units of the housing development as targgettargeted units
affordable to very low income households; or
1258493.1 Pagel
(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
twenty (20) percent of the number of senior housing units; or
(4) Ten (10) percent of the total units in a common interest development for persons and
families of moderate income, provided that all units in the development are offered to the
public for purchase.
(5) Ten percent of the total units of a housing development for transitional foster youth as
defined in Section 66025.9 of the Education Code, disabled veterans, as defined in Section
18541 of the Government Code, or homeless persons, as defined in the federal McKinney-
Vento Homeless Assistance Act (42 U.S.C. Sec. 011301 et seg.). The units described in
this subparagraph shall be subject to a recorded affordability restriction of 55 years and
shall be provided at the same affordability level as very low income units.
L6) For purposes of calculating the amount of the density bonus pursuant to Section 9121, the
applicant who requests the density bonus pursuant to this subsection shall elect whether
the bonus shall be awarded on the basis of subparagraph (1), (2), (3), 4) or (45) of this
subsection.
(67) For the purposes of this Section, "total units" or "total dwelling units" lees" do not include
units added by a density bonus awarded pursuant to this Section or any local law granting
a greater density bonus.
_(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), up to 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 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
City 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.
1258493.1 Pagel
(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.
(6) The transferred land shall be within the boundary of the proposed development or, if the
City agrees, within one-quarter ('/) 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.
(c) When an applicant agrees to construct a housing development that conforms to the
requirements of Section 9121(a) and includes a child care facility that will be located on the
premises of, as part of, or adjacent to, the project, the following shall apply:
(1) The City shall grant either of the following, unless it finds, based upon substantial
evidence, that the community has adequate child care facilities:
(i) An additional density bonus that is an amount of square feet of residential space that
is equal to or greater than the amount of square feet in the child care facility.., or
(ii) An additional concession or incentive that contributes significantly to the economic
feasibility of the construction of the child care facility.
(2) The City shall require, as a condition of approving the housing development, that the
following occur:
(i) The child care facility shall remain in operation for a period of time that is as long as or
longer than the period of time during which the taN&ttarpeted units are required to
remain affordable pursuant to s u" ,Section 9131(d) and (e).
(ii) Of the children who attend the child care facility, the children of very low income
households, low income households, or families of moderate income shall equal a
percentage that is equal to or greater than the percentage of dwelling units that are
required for very low income households, low income households, or families of
moderate income pursuant to subsect'GRSection 9121(a).
M73-01-4 - a M gem Lill
(d) When an applicant to convert apartments to a condominium project pursuant to Section 9274 of
this Code agrees to provide at least 33 percent of the total units of the proposed condominium
prosect to persons and families of low or moderate income, or 15 percent of the total units of the
proposed condominium project to lower income households, and agrees to pay reasonably
necessary administrative costs incurred by the City, the City shall grant either of the following,
unless the apartments proposed for conversion constitute a housing development for which a
density bonus or other incentives were previously provided under Government Code Section
69MS.
(1) a density bonus to increase the number of units by 25 percent over the number of
apartments within the existing structure(s) proposed for conversion: or
(2) other incentives of equivalent financial value, which may include the reduction or waiver of
requirements which the City may otherwise apply as conditions of conversion approval.
(3) The City may place such reasonable conditions on the granting of a density bonus or other
incentives of equivalent financial value including, but not limited to, conditions which
1258493.1 Pagel
assure continued affordability of units to subsequent purchasers who are persons and
families of low and moderate income or lower income households.
(4) The application to convert apartments to a condominium project may be submitted to the
City for preliminary review prior to submittal of formal request for subdivision map
approvals pursuant to Section 9141. The City shall notify applicant in writing of the
manner in which City will comply with this subsection (d) within 90 days of receipt of a
written proposal.
(5) An applicant shall be ineligible for a density bonus or other incentives or concessions
under this subsection (d) if the apartment complex proposed for conversion includes a
parcel(s) on which rental dwelling units are or, if the dwelling units have been vacated or
demolished in the five-year period preceding the application, have been subject to a
recorded covenant, ordinance or law that restricts rents to a level affordable to persons
and families of lower or very low income; are subject to any form of rent or price control
through the City's valid exercise of its police power; or are occupied by lower or very low
income household unless the proposed condominium project replaces those units in
accordance with Section 65915(c)(3)(B) of the Government Code and either of the
following applies:
i. The proposed condominium project, inclusive of the units replaced, contains
affordable units at the percentages set forth in Section9121(a), or
ii. Each unit in the development, exclusive of manager's unit or units, is affordable to,
and occupied by, either a lower or very low income household.
(e) When an applicant for a commercial development has entered into an agreement for
partnered housing as described in paragraph (2) below, the City shall grant a development
bonus to the commercial developer in accordance with Section 65915.7 of the Government
Code and the following shall apply:
(1) Housing shall be constructed either on the site of the commercial development or on a
site that meets the following criteria:
(i) Within the City of Tustin limits,
(ii) In close proximity to public amenities such as schools and employment
centers,
NO Within one-half mile of a major transit stop, and
(2) The agreement for partnered housing shall be between the commercial developer and
the housing developer, shall identify how the commercial developer will contribute
affordable housing, and shall be approved by the City.
(3) Affordable housing may be contributed by the commercial developer in one of the
followina manners:
(i) The commercial developer may directly build the units.
(ii) The commercial developer may donate a portion of the site or property
elsewhere to the affordable housing developer for use as a site for affordable
housing.
(iii) The commercial developer may make a cash payment to the affordable
housing developer that shall be used toward the cost of constructing the
affordable housinq project.
(4) In order to qualify for a development bonus under this section, a commercial
developer shall partner with a housing developer that provides at least 30 percent of
1258493.1 Page 1
the total units for low-income households or at least 15 percent of the total units for
very -low income households.
(5) A development bonus pursuant to this section shall not include a reduction or waiver
of any City requirement for payment of any fee payable by a commercial developer for
the promotion or provision of affordable housing.
(6) The development bonus granted to the commercial developer shall mean incentives,
mutually agreed upon by the developer and the City and may include any of the
following:
Up to a 20 -percent increase in maximum allowable intensity in the General
Plan.
(ii) Up to a 20 -percent increase in maximum floor area ratio.
(iii) Up to a 20 -percent increase in maximum height requirements.
(iv) Up to a 20 -percent reduction in minimum parking requirements.
(v) Use of a limited-use/limited-application elevator for upper floor accessibility.
NO An exception to the zoning ordinance or other land use regulation.
(vii) Other allowances or incentives offered to developers by the City pursuant to
law or regulation.
7) If the developer of the affordable units does not commence with construction of those
units in accordance with the timelines provided in the agreement for partnered
housing, the City may withhold certificates of occupancy for the commercial
development under construction until the developer has completed construction of the
affordable units
(8) For purposes of this section, "partner" shall mean formation of a partnership, limited
liability company, corporation or other entity recognized by the State of California in
which the commercial development applicant and the affordable housing developer
are each partners, members, shareholders or other participants, or a contract or
agreement between a commercial development applicant and affordable housing
developer for the development of both the commercial and affordable housing
properties.
(9) This section shall be applicable to development projects submitted prior to January 1,
2022. As of January 1, 2022, Section 9121(e) is repealed in accordance with Section
65915.7 of the Government Code, as may be amended.
(f) A proposed housing development which includes a parcel or parcels which rental dwelling
units are or, if the dwelling units have been vacated or demolished in the five (5) year period
preceding the application, have been subject to a recorded covenant, ordinance, or law that
restricts rents to persons or families of lower or very low income shall be ineligible for a
density bonus, or any other incentives or concessions under this Part unless the proposed
housing development replaces those units in accordance with Government Code Section
65915(c)(3)(B), and either of the following applies:
(1) The proposed housing development, inclusive of the units replaced pursuant to this
paragraph, contains affordable units at the percentages set forth in Section 9121(a), or
(2) Each unit in the development, exclusive of a manager's unit or units, is affordable
to, and occupied by, either a lower or very low income household.
1258493.1 Page 1
9122 - DENSITY BONUS
(1) 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
s �"�tie ;Section 9121(a) as follows:
Percentage
of
T -a Fg e Additional
Additional
Ta�get-Targeted
Targeted Units Density TaFget Density
Group Bonus Targeted
(excluding Bonus
Units
Density
j Bonus Units)
�1 20 1.5 percent, maximum
Low -Income --1-1 10 percent Each 1 percent increase
percent 35 percent
z
e20' �2 5 percent, maximum
Very Low Income5 percent Each 1 percent increase
p 35 percent
� I
33 5 1.0 percent, maximum
Moderate Income- - 10 percent Each 1 percent increase
percent 35 percent
Senior Citizen 20 N/A N/A
Housing -44 percent
Transitional foster
youth, disabled 20
10 percent
veterans or homelessep rcent
person S5
Very Low Income
15 A 1.0 percent, maximum
under Land Donation 10 percent Each 1 percent increase
-5-6 percent 35 percent
' For housing
development
meeting
the criteria of Section 9121(a)(1)
Z For housing
development
meeting
the criteria of Section 9121(a)(2)
3 For housing
development
meeting
the criteria of Section 9121(a)(3)
4 For housing
development
meeting
the criteria of Section 9121(a)(4)
5 For housing
development
meeting
the criteria of Section 9121(a)(5)
6 For housing
development
meeting
the criteria of Section 9121(b)
1258493.1 Pagel
_(Ord. No. 1320, Sec. 2, 11-20-06)
9123 - INCENTIVES OR CONCESSIONS
(a) An applicant for a density bonus may submit to the City a proposal for the specific concession(s) or
incentive(s) that the applicant requests pursuant to this seGtier4Chapter, and the appiiG^n' may
request a meeting with the City. The City must grant the concession(s) or incentive(s) requested by
the applicant unless the City makes a written finding, based upon substantial evidence, of either
of the following:
(1) The concessions) or incentive(s)-+s does not requiredresult in erderidentifiable and actual cost
reductions to provide for affordable housing costs or for rents for the
targettargeted units.. to be set as specified in Section 9131.
(2) The concession(s) or incentive(s) would have a specific adverse impact, as defined i�
GeVeFRR;eRt Code SeGtdE)R 65589.5, subd'V'S'GR (d), paragraph , upon public health and
safety or the physical environment or on any real property that is listed in the California Register
of Historical Resources and for which there is no feasible method to satisfactorily mitigate or
avoid the specific adverse impact without rendering the development unaffordable to low- and
moderate- income households.
(3) The concession or incentive would be contrary to state or federal law.
(b) The applicant shall be entitled to receive the following number of concessions or incentives:
TaFgeiTargeted Group
Very Low Income
t:ewLower Income
TrgetTargeted Units
Maximum Incentives -/Concessions
(Percent)
5 1 1
10 1 2
15 1 3
10 1
20 1 2
1258493.1 Page 1
(c) Incentives or concessions may include the following:
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
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.
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
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 aMeRdrnentsamendment, zoning change, or other discretionary approval. This
provision is declatory of existing law.
(Ord. ^a-, e. 1320,Sesr11-28 06; Ord. No. 1372, Sess. 5, 6, 1-19-10)
9124 - WAIVERS OR REDUCTIONS
(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 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.
(b) The waiver or reduction shall be granted unless the City Council adopts a written finding, based on
substantial evidence, of either the following:
The waiver or reduction of development standards would have a specific adverse impact; ---s
de#+ , upon health,
1258493.1 Page 1
30
3
Moderate Income
(Condominium only)
10
1
20
2
30
3
(c) Incentives or concessions may include the following:
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
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.
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
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 aMeRdrnentsamendment, zoning change, or other discretionary approval. This
provision is declatory of existing law.
(Ord. ^a-, e. 1320,Sesr11-28 06; Ord. No. 1372, Sess. 5, 6, 1-19-10)
9124 - WAIVERS OR REDUCTIONS
(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 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.
(b) The waiver or reduction shall be granted unless the City Council adopts a written finding, based on
substantial evidence, of either the following:
The waiver or reduction of development standards would have a specific adverse impact; ---s
de#+ , upon health,
1258493.1 Page 1
safety, or the physical environment, and for which there is no feasible method to satisfactorily
mitigate or avoid the specific adverse impact.
2. The waiver or reduction of development standards would have a -Ra specific adverse impact on
any real property that is listed in the California Register of Historical Resources.
9125 - OPTIONAL ADDITIONAL ASSISTANCE
The City may approve additional assistance to facilitate the inclusion of more Targe Targeted Units
than are required by this Chapter. The City Council may approve any of the following in its sole discretion,
including, but not limited to:
(a) A density bonus greater than that required in Section 9121 of this Chapter.
(b) A proportionately lower density bonus than what is required by this Chapter when the housing
development does not meet the requirements of this Chapter.
(c) Waived, reduced, or deferred planning, plan check, building permit and/or development impact
fees.
(d) 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 low interest financing for on
or off site improvements, contribution to land, or construction costs.
PART 3 - DEVELOPMENT REQUIREMENTS
9131 - STANDARD REQUIREMENTS
(a) TargetTargeted units shall be built on-site, and be integrated within the housing development except
those units built in conjunction with the donation and transfer of land pursuant to subsestionSection
9121(b).
(b) Targe Targeted units shall be constructed concurrently with non -restricted units unless both the City
and the applicant agree in the housing incentive agreement described in Section 9142 to an
alternative schedule for development.
(c) Except for a senior citizen housing development, the number of bedrooms of the targettargeted units
shall be generally equivalent to the bedroom mix of the non -restricted units of the housing
development, as determined by the director and embodied in a housing incentive agreement.
Notwithstanding the foregoing, the applicant may include a higher proportion of +fgettargeted units
with more bedrooms than the non -restricted units.
(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 th44y430 fifty
five 55) 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 units shall be set at an affordable rent as defined in 2_er__tiA_R 50-053 E)f the
. Owner -occupied units shall be available at an affordable housing cost -as
d_P_finP_d_ in SeGtion 50052.5 ef the Health and Safety Cede.
(e) An applicant shall agree to, and the City shall ensure that, the initial occupant of the rr oderate-
+flsenaeall for -sale units that aro Hirer.+l" rola+ori +„qualified the applicant for the feseiptaward of the
1258493.1 Pagel
density bonus OR the GOMMeR ORterest development, as defiRed OR SeGtieR 1351 ef the Givil Godee, are
persons and families of very low, low or moderate --income, as defiRed in Section 50093 of the Health
and Safety GGdereguired, and that the units are offered at an affordable housing cost, as that Gest ,s
defined in Ser --tion 50-0-52.5 of the Health and Safety . 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 IeGal gevernmen City shall
recapture any initial subsidy and its proportionate share of appreciation, which shall then be
used within 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 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.
_(f) The design and appearance of the tafgettargeted units shall be consistent 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.
(g) A housing incentive agreement shall be entered into between the applicant and City and/or the
ageRG! Housinq Authority to memorialize among other things, the applicant's commitment to provide
targettargeted 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 development, conditional use permits, etc.) for all housing developments
pursuant to this Chapter.
(h) (1) Upon the request of the developer, the vehicular parking ratio, inclusive of disaeledisabled
access and guest parking, of a development meeting the criteria ofsubseGtieRSection 9121(a),
shall not exceed the following ratios:
Number of Bedrooms
Parking Ratio 1
0-1
1 space
2-3
2 spaces
4 or more
I
2.5 spaces
Notwithstandina paraaraph (h) above, if a development includes the maximum percentaae of low- or
very low income units provided for in Section 9122 and is located within one-half mile of a major transit
stop and there is unobstructed access to the major transit stop from the development, the developer may
reauest the Citv not impose a vehicular parkina ratio that exceeds 0.5 spaces per bedroom. includina
handicapped and quest parkin
1258493.1 Pagel
(i) If the development consists solely of rental units with an affordable housing cost to low income
families, exclusive of a manager's unit(s), then the developer may request the City not impose a vehicular
parking ratio, including handicapped and quest parking that exceeds the following ratios, if the
development is:
Located within one-half mile of a major transit stop
Not to Exceed 0.5 spaces per unit
with unobstructed access to the major transit stop
from the development
For -rent Senior Citizen Housing Development as
Not to Exceed 0.5 spaces per unit
defined in Section 9112, and has either paratransit
service or unobstructed access, within one-half
mile to fixed bus route service that operates at least
eight times per day
Special Needs Housing, as defined in Section
Not to exceed 0.3 spaces per unit
9112, and has either paratransit service or
unobstructed access, within one-half mile to fixed
bus route service that operates at least eight times
per day
(k) If the total number of parking spaces required for a development is other than a whole
number, the number shall be rounded up to the next whole number. For purposes of this section, a
development may provide "on-site parking" through tandem parking or uncovered parking, but not
mon-street parking.
(C)Fd. e. 1328, See. 2, 11220 06; QFd. Ne. 1372, Sees. 8, 9, 1 19 19 (I) If the development meets
the requirements of Section 9121, an applicant may request parking incentives or concessions beyond
those provided in Section 9122. A request pursuant to this subdivision shall not increase the number of
incentives or concessions to which the applicant is entitled pursuant to Section 9123(b).
(m) The City may, in its discretion, reduce or eliminate a parking requirement for
developments of any type in any location.
(n) The City may impose a higher parking ratio not to exceed the ratio described in Section
9131(h)(1) if, based on substantial evidence found in a parking study prepared by the City within seven
(7) years preceding the proposed project and which includes an analysis of parking availability, differing
levels of transit access, walkability access to transit services, the potential for shared parking, the effect of
parking requirements on the cost of market -rate and subsidized developments, and the lower rates of car
ownership for low- and very low income individuals, including seniors and special needs individuals. The
City shall make findings, based on the parking study supporting the need for a higher parking ratio.
PART 4 - APPLICATION AND HOUSING INCENTIVES AGREEMENT
9141 - APPLICATION REQUIREMENTS AND REVIEW
(a) (a) An applicant proposing a housing development pursuant to this Chapter, n ayshall submit
a preliminary application, prior to the submittal of any formal request for approval of a permit for a
1258493.1 Paget
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:
(4(1) Existing land uses on the property, including any existing rental unit(s).
(2) A request for density bonus by specifying the code section of which the density bonus shall be
awarded.
(23) A description of the proposed housing development including the total number of units,
targettargeted units by income category, and density bonus units bedroom mix.
(54) The zoning and general plan designations and assessors parcel number(s) of the project site.
(45) The location of the targettargeted units within the housing development.
(56) The number of additional housing units requested as the density bonus for the housing
development.
(67) A vicinity map and preliminary site, floor, and elevation plans, drawn to scale, including building
footprints, driveway, and parking layout.
q .. L8) A description of any requested concession(s)-er), incentive(s), waiver;�/el• sem,. modified
parking standards. if.a density-, and/or development bonus is -requested fGF a land donation, the
appliGatiOR shall show the In-r--afin-P c9f the tA hta dediGated and provide evidenne that eanh
_)F requested fer a E;hild Gare faGility, the app'*Gat*GR shall show the
subGeGtiGR 9121 (G) GaR be n; -et
and an explanation of
why they areeach is needed. -In requesting a concession, incentive, waiver, modified standard
of parking or waiver or reduction of development standards, the applicant shall provide
substantial facts in the form of a development pro -forma that the waiver or modification +s
fea le will result in identifiable and actual cost reductions. 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 cash flow, and return on investment— and the actual cost
reductions to be achieved.
(g(9) If a density bonus is requested for a land donation, the application shall show the location of the
land to be dedicated and provide evidence that each of the conditions included in Section
9121(b) can be met.
(10) If an additional density bonus or concession or incentive is requested for a child care facility,
the application shall show the location and square footage of the child care facility and provide
evidence that each of the conditions in Section 9121(c) can be met.
11) The applicant shall acknowledge in writing that a housing incentive agreement is required
(b) An application for a density bonus and/or concession or 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 subsestieRSection 9141(a) plus all
other required information. Final approval or disapproval of an application shall be made by the City
Council
gene ; (i;-);, upon recommendation of the Planning Commission for those housing developments which
require Planning Commission entitlements; except that no approval shall be effective until the City or
age+Gythe Housing Authority (as applicable) and applicant have executed a housing incentive agreement.
(c) -_Within sixty (60) days of receipt of the preliminary application, the City shall provide the
applicant with a letter which identifies project issues of concern and the proposed concession or incentive
1258493.1 Page 1
that the director would recommend to the Planning Commission and City Council and the procedures for
compliance with this Chapter.
-(d)_Where the applicant proposes that the City provide optional additional assistance as described
in Section 9125 herein, the proposal shall be considered by the Planning Commission for
recommendation to the City Council, or agensythe Housing Authority where agenGythe Housinq Authority
funds are requested, for their preliminary approval unless such housing development does not require
Planning Commission entitlements in which case, the City Council or agenGythe Housing Authority, as
applicable, can authorize such assistance. A preliminary approval shall indicate the City Council's
approval of the proposal for processing, but no optional additional assistance shall be deemed approved
until embodied in the housing incentive agreement.
9142 - HOUSING INCENTIVE AGREEMENT
(a) Once an application for a density bonus and/or concession or incentive is approved pursuant to
subseGtienSection 9141(b), a housing incentive agreement shall be prepared consistent with any
conditions of approval related thereto subject to review and approval as to form by the City Attorney.
The City (or agencythe Housing Authority) approval and execution responsibilities for such
agreement shall be as identified in the approval of the housing development application pursuant to
su#seetienSection 9141(b). Where such identification is not made by the City Council, such
agreement shall be subject to approval by the City Council.
(b) The final approval of any documents as required by the agreement shall take place prior to or
concurrent with 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 agreemeRtThe agreement
shall be recorder with the Orange County Recorder concurrent with the recording of the final map or
within thirty days of approval if a map is not processed and 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
targettargeted 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 housing cost.
(3) The location, unit sizes (square feet), and number of bedrooms of targettargeted units.
(4) Affordability restrictions for low and very low income targettargeted units for at least thin#y
00fifty five (55) years from the date the building(s) is first occupied or a longer period of time if
required by the construction or mortgage financing assistance program, mortgage insurance
program, rental subsidy program, or on a^^^"J"n^e vVith the COFFIM inity Redevelopment La
(Health and Safety Gede SeGtien 33000 et seq.).
(5) A schedule for completion and occupancy of the targeted units.
(6) A description of the concessions or incentive(s), or optional additional assistance being
provided by the City or agenGy:the Housing Authority.
(7) A description of remedies for breach of the agreement by either party (the City may identity
tenants or qualified purchasers as third party beneficiaries under the agreement).
(8) Other provisions to ensure implementation and compliance with this Chapter and State Law.
(d) In the case of for -sale housing developments or conversion of apartments to a condominium project
consistent with this Chapter, the agreement shall provide for the following regarding the initial sale
and use of +targeted units during the applicable use restriction period and for the respective
affordability period:
1258493.1 Pagel
(1) TafgetTargeted units shall, upon initial sale, be sold to eligible very low income households, low
income households or persons and families of moderate income consistent with this Chapter or
as approved by the City Council at an affordable housing cost or be made available to qualified
residents in a senior citizen housing development.
(2) TargetTargeted units shall be initially owner -occupied by eligible very low, low income, or
moderate income households, or by senior citizens in the case of a senior citizen housing
development or mobile home park that limits residency based on age requirements for housing
for older persons.
(3) The agreement shall provide for the continued affordability of the low income and very low
income targettargeted units for the applicable affordability period.
(4) The agreement shall provide for the recapture by the City of its proportionate share of
appreciation upon resale of moderate income tar-gettargeted units in accordance with this
Chapter.
(e) In the case of rental housing developments, the agreement shall provide for the following conditions
governing the use of targettarcgeted units during the affordability period:
(1) The rules and procedures for qualifying tenants, establishing affordable rent, filling vacancies,
and maintaining +fgettaraeted 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.
1258493.1 Pagel
ATTACHMENT D
Examples of Density Bonus Applications
LO
0
0
U
ct
C)
O
0
LO
N
o
cq
� II
cit
� o
4-1
cn
a�
� Q
�m+
�co
cq
O
O+ N
0
0
0
0
co
co
c�
0
0
0
0
o
�
M
ON
o
0
co
co
N
N
d'
Co
M
N
+-J
ct
,C
3
,o
0
0
0
0
d'
co
M
O0
0
O
0
O
0
�4
O N
N ,o
O 0N
N ro
m L:
cry cr.,
ct
c
U
U