HomeMy WebLinkAbout15 CODE AMENDMENT 2022-0004 (ORDINANCE NO. 1528) – DENSITY BONUS UPDATEDocuSign Envelope ID: 239BD86B-B354-4090-8C4C-4B4C6D1C4442
M ETING DATE:
TO
FRO
SUBJECT:
SUM RY:
Agenda Item 15
AGENDA REPORT Reviewed: DS
City M nager mS�
Finance Director N/A
EPTEM ER 20, 2022
TTHEW S. W ST, CITY M NAG R
O NITY DEVELO M NT DEPARTM NT
CO E AM NDM NT 2022-0004 (O DINANCE NO 1528)—DENSITY
BO US UPDATE (INTRO UCTIO AND FIRST READING)
This Project is a City -initiated request to am nd Chapter 1 (Incentives for the
Development of Affordable Housing) of Article 9 (Land Use) to bring the Tustin City Code
(TCC) into conform nce with current State Density Bonus Law (G vernm nt Code
Section 65915-65918). The State Density Bonus Law provides developers with tools to
encourage the developm nt of affordable housing by providing additional density above
and beyond the Zoning and G neral Plan density. State Density Bonus Law also provides
developers with incentives intended to help m ke the developm nt of affordable housing
econom cally feasible. O her tools include reduced parking requirem nts, and incentives/
concessions and waivers of developm nt standards such as reduced setbacks and
m nim m square footage requirem nts.
O August 9, 2022, the Planning Com ssion adopted Resolution 4455 (Attachm nt A),
recom nding that the City Council adopt O dinance No. 1528, approving, CA 2022-
0004. The Planning Com ssion M nutes from August 9, 2022, are provided as
Attachm nt B for additional reference.
RECO ENDATIO :
That the City Council introduce and have a first reading, by title only, of O dinance No.
1528, amending Chapter 1 (Incentives for the Developm nt of Affordable Housing) of
Article 9 (Land Use) to bring the Tustin City Code (TCC) into conform nce with current
State Density Bonus Law (G vernm nt Code Section 65915-65918), and set the second
reading for the next regularly scheduled City Council m eting.
FISCAL IM ACT:
No im acts to the G neral Fund are anticipated.
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CO RELATIO TO THE STRATEG C PLAN:
This action correlates to the City's Strategic Plan G al A for Econom c and Neighborhood
Development, Strategy 15 to create affordable and workforce housing options and
Strategic Plan G al E for O ganizational Excellence and Custom r Service, Strategy 3 to
conduct a review of the developm nt approval process to identify stream ining
opportunities, and im lem nt a plan of im rovem nt.
APPRO AL AUTHO ITY:
The TCC 9295g authorizes the City Council to adopt zoning code am ndm nts following
a recom endation by the Planning Com ssion and a public hearing.
BACKG O ND:
W en a developer seeks and agrees to construct a housing developm nt that will contain
housing units for lower incom households ("affordable units"), per State Density Bonus
Law, cities and counties m st provide a density bonus along with incentives/concessions
and waivers to allow for the production of the affordable housing units. Every city and
county are required to adopt an ordinance that specifies how the jurisdiction will
im lem nt the State Density Bonus law. There have been several bills that have taken
effect since the last tim the City adopted the O dinance that im lem nts the State's
Density Bonus law. This Code Am ndm nt will incorporate new provisions into the City's
TCC in order to achieve com fiance with current State law.
DISCUSSIO :
California G vernm nt Code
California G vernm nt Code Sections 65915 through 65918 pertain to density bonuses
and other incentives. These sections require cities and counties to grant density bonuses
to developers who seeks and agrees to construct a housing developm nt that will contain:
specified percentage of housing units set aside to very low-, low-, or m derate-incom
households; senior housing; housing for transitional foster youth, disabled veterans,
hom less persons; or lower incom students. Cities and counties m st com ly with all
requirem nts for density bonuses and m st grant the am unt of density bonus or
incentives/concessions for which developers m y be eligible. The proposed Code
Am ndment (CA) 2022-0004 would bring the TCC into com liance with current State
Law.
Tustin City Code
The City of Tustin's current Density Bonus Law, Chapter 1 (Incentives for the
Developm nt of Affordable Housing) of Article 9 (Land Use) was first adopted in 2006 by
0 dinance No. 1320 and last am nded in 2017 by 0 dinance No. 1484.
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Code Am ndm nt 2022-0004 — Density Bonus Update
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Code Am ndm nt 2022-0004 has been prepared to am nd and restate in its entirety
Chapter 1 of Article 9 of the TCC to corn ly with the latest State Density Bonus Law
(G vernment Code Sections 65915-65918) as m dified by Assem ly Bills (AB) 2797,
2753, 991,1763, and 2345 and Senate Bills (SB) 1227, 290, and 728. The proposed
updates to the TCC are presented in Attachm nt C and Attachm nt D provides the draft
ordinance with the text changes tracked.
The following chart highlights som of the legislation that triggers the updates reflected in
the proposed am ndm nt:
• B 1227 - Added a bonus for eligible student housing developm nts.
• B 753 equires ocal overnm nts o otify evelopers df equired or
a com tete density bonus application.
• B 763 Added xtra onuses for taller and re ense 00 ercent affordable
projects.
• B 345 educed he ercentage f nits hat st a devoted
to ow ncom nits or the eveloper to eceive r 3 oncessions; increased
the xim m ensity bonus from hirty-five ercent (35%) to ifty percent (50%);
and educed parking standards applicable to ensity bonus.
• B 90 Clarifies that density onus law pplies to ental and or -sale housing,
extends im ted arking equirem nts o evelopm nts 64 t least 0%
m derate ncom nits, and certain student ousing rojects uality for ne
density bonus incentive or concession nd larifies specific provisions of the law.
• B 728 - allows developers (for -sale density bonus housing developm nts) to sell
affordable units to qualified onprofit housing corporations instead of selling the
units directly to a low or m derate incom hom buyer.
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The proposed updates to the TCC code include the following:
• Added section for Student Housing per SB 1227.
• Updated density bonus percentages consistent with AB 2345, SB 290 and AB 1763.
• Revised Target Units and M xim m Incentives or Concessions to com ly with current
State Law.
• Revised language claryfing that waivers m st be consistent with federal law.
• Rem ved reference to outdated reference to housing set-aside funds.
• Added subsection to clairfy that rental units are eligible for density bonus provisions
per SB 290 and subject to affordable rents.
• Added language per SB 728 which allows non -profits to purchase affordable units and
m nage the units accordingly.
• Added language to clarify equity sharing provisions.
TCC 9132 Parking Standards
• Updated parking standards per AB 2345, Zero to one bedroom requires one parking
space; two to three bedroom requires one and half parking spaces, and four or m re
bedroom requires two and half parking spaces and no parking when located within
located within 1/2 m le of a m jor transit stop when requested by the applicant.
• Rem ved language to com ly with State Law that lim is the City's ability to request
special studies to justify a concession or waiver request.
• Revised application procedures per AB 2753, providing clarity on m terials necessary
for a com tete application.
TCC 9142 Housing Incentive Agreem nt
• Incorprates existing City Policy adopted by City Council in 2017. The Local W rkforce
Housing Preference Policy is a priority system where applicants who are currently
em loyed in or currently residing in the city of Tustin would have a priority over an
applicant who does not currently reside or is not em loyed in the City of Tustin. The
City policy adopted in 2007 is not being changed.
• dded subheadings, organized sections, and added specific code references within the
Chapter to im rove the readability of the code.
• evised language to achieve consistency with State Law.
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Consistency with the Tustin's Housing Elem nt of the G neral Plan
The proposed Code Am ndm nt 2022-0004 is consistent with the City's Housing Elem nt
of the G neral Plan in that it com lies with the following goal and policy:
Housing Elem nt G all: Provision of an adequate supply of housing to m et the
need for a variety of housing types and the diverse socio-econom c needs of all
com nity residents com nsurate with the City's identified housing needs in the
RHNA allocation.
Policy 1.3: Regulatory Incentives — Support the use of regulatory incentives, such
as density bonuses and deferm nt of im act fees, to offset the costs of affordable
housing while ensuring that potential im acts are addressed.
Public Notice
A 1/8 -page public notice was published in the Tustin News on Septem er 8, 2022,
inform ng the public of the City Council public hearing for proposed CA 2022-0004. In
addition, the public notice was posted at Tustin City Hall, the Tustin Library, and the Tustin
Area Senior Center.
Environm ntal Review
This Project is not subject to the California Environm ntal Q ality Act ("CEQ "; Cal. Pub.
Resources Code Section 21000 et seq.) 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 environm nt) 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 environm nt, directly or indirectly and will not result in any physical
development in and of itself. Any future developm nt which utilizes these provisions will
require CEQ review specific to the site and proposed developm nt. In addition, the
State Density Bonus Law contains m ndatory provisions that the City m st implem nt,
whether or not it adopts its own ordinance, therefore the am ndm nt does not create a
new land use regulation.
Planning Com ssion Action
O August 9, 2022, the Planning Com ssion adopted Resolution 4455 (Attachm nt B),
recom nding that the City Council adopt O dinance No. 1528, approving, CA 2022-
0004.
CO CLUSIO :
The proposed Code Am ndm nt 2022-0004 would be consistent with the City's G neral
Plan and bring the TCC into conform nce with latest State Density Bonus Law
(G vernm nt Code Section 65915-65918); therefore, Staff recom nds that the Tustin
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City Council introduce O dinance No. 1528 by title only, am nding and reinstating in its
entirety Chapter 1 (Incentives for the Developm nt of Affordable Housing) of Article 9
(Land Use) and set the second reading for the next regularly scheduled City Council
m eting.
5 DocuSigned by:
Ivw,a Rh itrbw
v2ESAE588F82047F—
Irm Huitron
Assistant Com nity Developm nt
Director - Planning
ET
DocuSigned by:
a.Rttii{�m&
SAE588F82047F...
Raym nd Barragan
Principal Planner
Attachm nts:
DocuSigned by,
...nuow,� 54A5
Justina L. W Ilkom
om nity Developm nt Director
A. Planning Com ssion Resolution No. 4455
B. Planning Com ssion M nutes — August 9, 2022
C. Draft O dinance No. 1528 ("Clean Version")
D. Draft O dinance No. 1528 ("Redlined")
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ATTACHMENT A
PLANNING COMMISSION RESOLUTION NO. 4455
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RESOLUTION NO. 4455
A RESOLUTION OF THE PLANNING COMMISSION OF THE
CITY OF TUSTIN, CALIFORNIA, RECOMMENDING THAT THE
CITY COUNCIL ADOPT ORDINANCE NO. 1528, AMENDING
AND RESTATING IN ITS ENTIRETY CHAPTER 1 OF ARTICLE 9
(LAND USE) OF THE TUSTIN CITY CODE (CODE AMENDMENT
2022-0004) RELATING TO INCENTIVES FOR THE
DEVELOPMENT OF AFFORDABLE HOUSING
The Planning Commission does hereby resolve as follows:
I. The Planning Commission 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 expediate 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 Chapter 1 of Article 9 of the Tustin City Code (TCC), which contains
provisions for density bonus and development incentives, concessions,
and waivers for affordable housing, was last updated in October of 2017
with the adoption of City Council Ordinance No. 1484.
C. That a City initiated Code Amendment 2022-0004 has been prepared to
amend and restate in its entirety Chapter 1 of Article 9 of the TCC to
comply with the State Density Bonus Law (Government Code Sections
65915-65918) as modified by Assembly Bills (AB) 2797, 2753,
991,1763, and 2345 and Senate Bills (SB) 1227, 290, and 728.
D. That Code Amendment 2022-0004 updates existing TCC provisions
pertaining to density bonus and development incentives, concessions,
and waivers for affordable housing, which incentivize the production of
new affordable and special needs housing, thereby contributing to the
heath and welfare of underserved populations, including lower income
households, senior citizens, transitional foster youth, disabled veterans
and homeless persons.
E. That on August 9, 2022, a public hearing was duly noticed, called, and
held by the Planning Commission on Code Amendment 2022-0004.
F. That Code Amendment 2022-0004 is not subject to the California
Environmental Quality Act ("CEQA"; Cal. Pub. Resources Code Section
21000 et seq.) pursuant to California Code of Regulations, Title 14
Chapter 3, Sections 15060(c)(2) (the activity will not result in a direct or
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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 lindirectly 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 State Density Bonus Law
contains mandatory provisions that the City must implement, whether or
not it adopts its own ordinance, therefore the amendment does not
create a new land use regulation.
The Planning Commission hereby recommends that the City Council adopt
Ordinance No. 1528, amending and restating in its entirety Chapter 1 of Article
(Land Use) of the Tustin City Code (Code Amendment 2022-0004) relating to
incentives for the development of affordable housing, attached hereto as
Exhibit A.
PASSED AND ADOPTED at a regular meeting of the Tustin Planning Commission held
on the 9th day of August, 2022.
DAVID J. MELL , JR.
Chairperson Z
Jb*f INA L. WILLKOM
Planning Commission Secretary
STATE OF CALIFORNIA
COUNTY OF ORANGE
CITY OF TUSTIN
1, JUSTINA L. WILLKOM, the undersigned, hereby certify that I am the Planning
Commission Secretary of the Planning Commission of the City of Tustin, California; that
Resolution No. 4455 duly passed and adopted at a regular meeting of the Tustin Planning
Commission, held on the 9th day of August, 2022.
JU57TINA L. WILLKOM
Planning Commission Secretary
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ORDINANCE NO. 1528
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TUSTIN, CALIFORNIA, AMENDING AND RESTATING IN
ITS ENTIRETY CHAPTER 1 OF ARTICLE 9 (LAND USE) OF
THE TUSTIN CITY CODE (CODE AMENDMENT 2022-0004)
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
expediate 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 Chapter 1 of Article 9 of the Tustin City Code (TCC), which contains
provisions for density bonus and development incentives, concessions, and
waivers for affordable housing, was last updated in October of 2017 with the
adoption of City Council Ordinance No. 1484.
C. That a City initiated Code Amendment 2022-0004 has been prepared to amend
and restate in its entirety Chapter 1 of Article 9 of the TCC to comply with the State
Density Bonus Law (Government Code Sections 65915.65918) as modified by
Assembly Bills (AB) 2797, 2753, 991,1763, and 2345 and Senate Bills (SB) 1227,
290, and 728.
D. That Code Amendment 2022-0004 updates existing TCC provisions pertaining to
density bonus and development incentives, concessions, and waivers for
affordable housing, which incentivize the 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 persons.
E. That on August 9, 2022, the Planning Commission adopted Resolution No. 4455,
and recommended that the City Council adopt Ordinance No. 1528, approving
Code Amendment 2022-0004 amending and restating in its entirety Chapter 1 of
Article 9 of the Tustin City Code relating to incentives for the development of
affordable housing.
F. That on I , 2022, a public hearing was duly noticed, called, and held on
Code Amendment 2022-0004 by the City Council.
Ordinance No, 1528
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SECTION 2. Chapter 1 (Incentives for the Development of Affordable Housing) of Article
9 (Land Use) of the Tustin City Code is hereby amended and restated in its entirety as
stated in the revised Chapter 1 attached hereto and incorporated herein by this reference.
SECTION 3. Effective Date. This Ordinance shall take effect on the 31St day after its
adoption. The City Clerk or his or her duly appointed deputy shall certify to the adoption
of the Ordinance and cause this Ordinance to be published as required by law.
SECTION 4. CEQA Exemption. The City Council finds that this Ordinance is not subject
to the California Environmental Quality Act ("CEQA"; Cal. Pub. Resources Code Section
21000 et seq.) 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 State Density
Bonus Law contains mandatory provisions that the City must implement, whether or not
it adopts its own ordinance, therefore the amendment does not create a new land use
regulation.
SECTION 5. Severability. If any section, sub -section, clause or phrase in this Ordinance
or the application thereof to any person or circumstances is for any reason held invalid,
the validity of the remainder of this Ordinance or the application of such provisions to
other persons or circumstances shall not be affected.
PASSED AND ADOPTED, at a regular meeting of the City Council of the City of
Tustin on this day of , 2022.
AUSTIN LUMBARD, Mayor
CARRIE WOODWARD, Acting City Clerk
Ordinance No. 1528
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STATE OF CALIFORNIA }
COUNTY OF ORANGE ) ss
CITY OF TUSTIN }
CERTIFICATION FOR ORDINANCE NO. 1528
CARRIE WOODWARD, Acting City Clerk and ex -officio Clerk of the City Council of the
City of Tustin, California, do 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 1528
was duly passed and adopted at a regular meeting of the Tustin City Council held on the
day of , 2022, by the following vote:
COUNCILMEMBER AYES:
COUNCILMEMBER NOES:
COUNCILMEMBER ABSTAINED:
COUNCILMEMBER ABSENT:
CARRIE WOODWARD, Acting City Clerk
Ordinance No. 1528
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Attachment: Chapter l Incentives for the Development of Affordable Housing
Ordinance No. 1528
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ARTICLE 9 - LAND USE
CHAPTER 1 INCENTIVES FOR THE DEVELOPMENT OF AFFORDABLE HOUSING
CHAPTER I INCENTIVES FOR THE DEVELOPMENT OF AFFORDABLE HOUSING
PART I 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, senior citizens, transitional foster youth, lower income students, disabled veterans and
homeless persons in accordance with California Density Bonus Law (Government Code section 65915 et seq.). 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 regulations and procedures set forth in this Chapter shall apply citywide. 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.
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.
"Affordable Rent" means as defined in Health and Safety Code section 50053. The term applies to
rental units.
"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.
"Concession or Incentive" means the concession(s) and incentive(s) as specified in Government Code
section 65915(k) and Section 9123 of this Chapter.
"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 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.
Tustin, California, Code of Ordinances created: 2021-03-25 14:26:56 [EST]
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"Housing Authority" means the Tustin Housing Authority.
"Housing Development" means a development project consisting of five (5) or more residential units,
including single-family, multifamily 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 in available residential units. For the purpose of
calculating a density bonus, 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 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 or bus rapid transit station, or the
intersection of two (2) or more major bus routes with a frequency of service interval of fifteen (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.
"Natural or constructed Impediments" includes, but is not limited to freeways, rivers, mountains, and
bodies of water, but does not include residential structures, shopping centers, parking lots, or rails used for
transit.
"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 8 of the United States Housing Act of 1937.
"Qualified nonprofit housing corporation" means a nonprofit housing corporation organized pursuant to
Section 501(c)(3) of the Internal Revenue Code that has received a welfare exemption under Section 214.15 of
the Revenue and Taxation Code for properties intended to be sold to low-income families who participate in
a special no -interest loan program,
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(Rev. 22-2022)
1701905.11744060,1
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"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 Development" 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. Special Needs Housing
Development is more fully defined in Section 51312 of the Health and Safety Code, and supportive housing
development is more fully defined in Section 50675.3.4 of the Health and Safety Code.
"Specific Adverse impact" means a significant, quantifiable, direct, and unavoidable impact,based on
objective, identified written public health or safety standards, policies, or conditions as they existed on the
date the application was deemed complete.
"Student housing development" means any housing used exclusively for undergraduate, graduate, or
professional students enrolled full time at an institution of higher education accredited by the Western
Association of Schools and Colleges or the Accrediting Commission for Community and Junior Colleges.
"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,
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 9132 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) Housing for Lower Income Households. Ten (10) percent of the total units of the housing development as
targeted units affordable to lower income households; or
(2) Housing for Very Low Income Households. Five (5) percent of the total units of the housing development
as targeted units affordable to very low income households; or
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(3) Senior Housing or Mobile Home Park. 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; or
(4) Housing for Moderate Income Households. Ten (10) percent of the total units of a housing development
are sold to persons and families of moderate income, provided that all units in the development are
offered to the public for purchase; or
(5) Housing for Transitional Foster Youth, Disabled Veterans, Homeless Persons. Ten (10) 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 fifty-five
(55) years and shall be provided at the same affordability level as very low-income units; or
(6) Student Housing. Twenty (20) percent of the total units of the housing development for lower income
students in a student housing development that meets the following requirements:
(i) All units in the student housing development will be used exclusively for undergraduate, graduate, or
professional students enrolled full time at an institution of higher education accredited by the
Western Association of Schools and Colleges or the Accrediting Commission for Community and
Junior Colleges. In order to be eligible under this subclause, the developer shall, as a condition of
receiving a certificate of occupancy, provide evidence to the City that the developer has entered into
an operating agreement or master lease with one or more institutions of higher education for the
institution or institutions to occupy all units of the student housing development with students from
that institution or institutions, An operating agreement or master lease entered into pursuant to this
subclause is not violated or breached if, in any subsequent year, there are not sufficient students
enrolled in an institution of higher education to fill all units in the student housing development.
(ii) The applicable 20 -percent units will be used for lower income students.
(iii) The rent provided in the applicable units of the development for lower income students shall be
calculated at 30 percent of 65 percent of the area median income for a single -room occupancy unit
type.
(iv) The development will provide priority for the applicable affordable units for lower income students
experiencing homelessness. A homeless service provider, as defined in paragraph (3) of subdivision
(e) of Section 103577 of the Health and Safety Code, or institution of higher education that has
knowledge of a person's homeless status may verify a person's status as homeless for purposes of
this subparagraph.
For purposes of calculating a density bonus granted pursuant to this Subsection 6, the term "unit" means
one rental bed and its pro rata share of associated common area facilities. The units described in this subsection
shall be subject to a recorded affordability restriction of 55 years.
(7) One hundred (100) percent of all units in the development, including total units and density bonus units,
but exclusive of a manager's unit or units, are for lower income households, as defined by Section 50079.5
of the Health and Safety Code, except that up to twenty (20) percent of the units in the development,
including total units and density bonus units, may be for moderate -income households.
(8) 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), (S), (6) or (7) of this subsection.
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(9) For the purposes of this section, "total units" or "total dwelling units" excludes units added by a density
bonus awarded pursuant to this section or any local law granting a greater density bonus but includes
Voluntary Workforce Housing Incentive Program units pursuant to Chapter 96.
(b) Land Donation. 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(h). This increase shall be in addition to any
increase in density mandated by Section 9121(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 Section
9121(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 with appropriate
development standards for development 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.
(4) No later than the date of approval of the final subdivision map, parcel map, or of the residential
development application, 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.
(5) The transferred land and the affordable units shall be subject to a deed restriction ensuring continued
affordability of the units consistent with Section 9131(d) and (e), which shall be recorded on the property
at the time of dedication.
(6) 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.
(7) 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.
(8) 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) Housing Development with Child Care Facility. When an applicant agrees to construct a housing development
that conforms to the requirements of Section 9121(x) 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:
(1) An additional density bonus that is an amount of square feet of residential space that is equal to or
greater than the amount of square feet in the child care facility, or
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(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) Apartment to Condominium Conversion Housing Development. When an applicant for approval to convert
apartments to a condominium project pursuant to Section 9274 of this Code agrees to provide at least thirty-
three (33) percent of the total units of the proposed condominium project to persons and families of low or
moderate income, or fifteen (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 twenty-five (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.
(1) In reference to subsections 9121 (d) (1) and 9121 (d) (2), 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 and
(ii) 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 ninety (90) days of receipt of a written proposal.
(iii) An applicant shall be ineligible for a density bonus or other incentives or concessions under this
subsection 9121 (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:
a. The proposed condominium project, inclusive of the units replaced, contains affordable
units at the percentages set forth in Section 9121(a), or
b. 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) Ineligible Housing Development Project. An applicant shall be ineligible for a density bonus or any other
incentives or concessions under this Chapter if the housing development is proposed on any property that
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includes a parcel or parcels on 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 levels affordable to persons and families of lower or very low income;
or occupied by lower or very low income households, 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.
9.22 AMOUNT OF DENSITY BONUS
Amount of Density Bonus. The amount of density bonus granted shall be based on the category and
percentage of affordable housing units proposed, as reflected in the following tables:
(a) Lower Income Households. For housing developments meeting the criteria of Section 9121(a)(1), the density
bonus shall be calculated as follows:
Percentage Low -Income Units
Percentage Density Bonus
10
20
11
21.5
12
23
13
24.5
14
26
15
27.5
16
29
17
30.5
18
32
19
33.5
20
35
21
38.75
22
42.5
23
46.25
24
50
(b) Very Low Income Households. For housing developments meeting the criteria of Section 9121(a)(2), the
density bonus shall be calculated as follows:
Percentage Very Low Income Units
Percentage Density Bonus
5
20
6
22.5
7
25
8
27.5
9
30
10
32.5
11
35
12
38.75
13
42.5
14
46.25
15
50
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(c) Moderate Income Households. For housing developments meeting the criteria of Section 9121(a)(4), the
density bonus shall be calculated as follows:
Percentage Moderate -Income Units
Percentage Density Bonus
10
5
11
6
12
7
13
8
14
9
15
10
16
11
17
12
18
13
19
14
20
15
21
16
22
17
23
18
24
19
25
20
26
21
27
22
28
23
29
24
30
25
31
26
32
27
33
28
34
29
35
30
36
31
37
32
38
33
39
34
40
35
41
38.75
42
42.5
43
46.25
44
50
(d) Senior Housing or Mobile Home Park. For housing developments meeting the criteria of Section 9121(a)(3),
the density bonus shall be 20 percent of the number of senior housing units.
(e) Transitional Foster Youth, Disabled Veterans, and Homeless Persons. For housing developments meeting the
criteria of Section 9121(a)(5), the density bonus shall be 20 percent of the number of the type of units giving
rise to a density bonus thereunder.
(f) Student Housing. For housing developments meeting the criteria of Section 9121(a)(6), the density bonus shall
be 35 percent of the student housing units.
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(g) One Hundred Percent Affordable. For housing developments meeting the criteria of Section 9121(a)(7), the
following shall apply:
(1) Except as provided in subsection (2) below, the density bonus shall be 80 percent of the number of units
for lower income households.
(2) If the housing development is located within one-half mile of a major transit stop, no maximum controls
on density shall be imposed.
(h) Land Donation. When an applicant for a tentative subdivision map, parcel map, or other residential
development approval donates land to the City in accordance with Section 9121(b), the applicant shall be
entitled to a 15 -percent increase above the otherwise maximum allowable residential density for the entire
development, as follows:
Percentage Very Low income Units (Land Donation)
Percentage Density Bonus
10
15
11
16
12
17
13
18
14
19
15
20
16
21
17
22
18
23
19
24
20
25
21
26
22
27
23
28
24
29
25
30
26
31
27
32
28
33
29
34
30
35
9.23 INCENTIVES OR CONCESSIONS
(a) Applicability. 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. 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 as specified in Section 9131.
(2) The concession(s) or incentive(s) would have a specific adverse impact upon public health and safety 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.
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(b) Number, The applicant shall be entitled to receive the following number of concessions or incentives:
Target Group
Target Units
(Percent)
Maximum Incentives or
Concessions
Very Low Income
5
1
10
2
15
3
Low Income
10
1
17
2
24
3
Moderate Income
(for -sale units only)
10
1
20
2
30
3
100% of Total Units
restricted to lower income
(maximum 20% moderate)
and located within %2 mile of
major transit stop
100 (excluding manager's
units)
4 and up to 3 additional stories,
or 33 feet.
Student Housing
20
1
(c) Type. 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 and actual costs reductions, including, but not limited
to:
(1) Reduced minimum lot size.
(ii) Reduced minimum setbacks.
(iii) Reduced minimum street standards such as reduced minimum street width.
(iv) Increased maximum lot coverage.
(v) Increased building height.
(vi) 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
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.
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9124 WAIVERS OR REDUCTIONS OF DEVELOPMENT STANDARDS
(a) Applicability. 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) Review. 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, or
safety, 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 an adverse impact on any real property
that is listed in the California Register of Historical Resources.
(3) The waiver or reduction of development standards would be contrary to state or federal law.
9125 OPTIONAL ADDITIONAL ASSISTANCE
(a) Applicability. The City may approve additional assistance to facilitate the inclusion of more Targeted Units
than are required by this Chapter.
(b) Type. The City Council may approve any of the following in its sole discretion, including, but not limited to:
(1) A density bonus greater than that required in Section 9121 of this Chapter.
(2) A proportionately lower density bonus than what is required by this Chapter when the housing
development does not meet the requirements of this Chapter.
(3) Waived, reduced, or deferred planning, plan check, building permit and/or development impact fees.
(4) Direct financial aid (e.g., Low and Moderate Income Housing Asset 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 STANDARD REQUIREMENTS
9131 STANDARD REQUIREMENTS
(a) Location. 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) Time of Construction. 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) Bedroom Count. 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) Affordable Housing Restrictions — Rental Units. An applicant shall agree to, and the City shall ensure,
continued affordability of all low- and very low-income rental units that qualified the applicant for the award
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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.
(e) Rents Units. Except as otherwise provided in subsection 9131(e)(1), Rents for the lower income density bonus
units shall be set at an affordable rent.
(1) For housing developments meeting the criteria of subsection 9121(a)(7), and except as my otherwise be
required by the Surplus Land Act, rents for all units in the development, including both base density and
density bonus units, shall be as follows:
(i) The rent for at least 20 percent of the units in the development shall be set at an affordable rent.
(ii) The rent for the remaining units in the development shall beset at an amount consistent with the
maximum rent levels for a housing development that receives an allocation of state or federal low-
income housing tax credits from the California Tax Credit Allocation Committee.
(f) Affordable Housing Restrictions -- For Sale units. An applicant shall agree to ensure, and the City shall ensure,
that a for -sale unit that qualified the applicant for the award of a density bonus meets either of the following
conditions:
(1) The unit is initially occupied by a person or family of very low, low or moderate -income, as required, and
is offered at an affordable housing cost and is subject to an equity sharing agreement.
(2) The unit is purchased by a qualified nonprofit housing corporation pursuant to a recorded contract that
satisfies all of the requirements specified in paragraph (10) of subdivision (a) of Section 402.1 of the
Revenue and Taxation Code and that includes all of the following:
(i) A repurchase option that requires a subsequent purchaser of the property that desires to resell or
convey the property to offer the qualified nonprofit corporation the right to repurchase the property
prior to selling or conveying that property to any other purchaser.
(ii) An equity sharing agreement.
(iii) Affordability restrictions on the sale and conveyance of the property that ensure that the property
will be preserved for lower income housing for at least 45 years for owner -occupied housing units
and will be sold or resold only to persons or families of very low, low, or moderate income.
(g) Equity Sharing. The City shall enforce an equity -sharing agreement required pursuant to subsections 9131(f)(1)
or 9131(f)(2), 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.
(2) Except as provided in subsection 9131(8)(5), 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.
(3) 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.
(4) For purposes of this subsection, the City's proportionate share of appreciation shall be equal to the ratio
of the City's initial subsidy to the fair market value of the home at the time of initial sale.
(5) If the unit is purchased or developed by a qualified nonprofit housing corporation, the City may enter into
a contract with the qualified nonprofit housing corporation under which the qualified nonprofit housing
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corporation would recapture any initial subsidy and its proportionate share of appreciation if the qualified
nonprofit housing corporation is required to use 100 percent of the proceeds to promote homeownership
for lower income households within the jurisdiction of the City
(h) Design. 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.
(i) Housing Incentive Agreement. 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.
9132 PARKING STANDARDS
(a) Parking. Upon the request of the developer, the vehicular parking ratio, inclusive of parking for persons with a
disability and guests, of a development meeting the criteria of Section 9121(a), shall not exceed the following
ratios:
Number of Bedrooms
Parking Ratio
0-1
1 space
2-3
1.5 spaces
4 or more
2.5 spaces
(1) Notwithstanding paragraph (a) above, if a development includes at least 20 percent low-income units
pursuant to Section 9121(a)(1) or at least 11 percent very low income units pursuant to 9121 (a)(2), is
located within one-half mile of a major transit stop, and there is unobstructed access to the major transit
stop from the development, then, upon the request of the developer, the City shall not impose a vehicular
parking ratio, inclusive of parking for persons with a disability and guests, that exceeds 0.5 spaces per
unit. Notwithstanding paragraph (a) above, if a development includes at least 40 percent moderate -
income units pursuant to Section 9121(a)(3), is located within one-half mile of a major transit stop, and
the residents of the development have unobstructed access to the major transit stop from the
development then, upon the request of the developer, the City shall not impose a vehicular parking ratio,
inclusive of parking for persons with a disability and guests, that exceeds 0.5 spaces per bedroom. The
following table provides the ratios described in this subsection, for a project meeting the eligibility
criteria:
Housing Development
Parking Ratio
Criteria
Type
Low income units
0.5 space
1) located within % mile of a major transit stop
(at least 20 percent)
2) unobstructed access to the major transit stop
3) Upon request of the developer
Very low income units
0.5 space
1) located within % mile of a major transit stop
(at least 11 percent)
2) unobstructed access to the major transit stop
3) Upon request of the developer
Moderate income units
0.5 space
1) located within % mile of a major transit stop
(at least 40 percent)
2) unobstructed access to the major transit stop
3) Upon request of the developer
(b) One Hundred Percent Affordable and Near Transit or Senior Citizen Housing. Notwithstanding paragraph (a)
above, if a development consists solely of rental units with an affordable housing cost to low income families,
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exclusive of a manager's unit(s), then, upon the request of the developer, the City shall not impose a vehicular
parking standards if the development meets either of the following criteria (1) located within one-half mile of
a major transit stop and there is unobstructed access to the major transit stop from the development, or (2) is
a for -rent Senior Citizen Housing 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.
(c) Special Needs Housing. Notwithstanding paragraph (a) above, if a development is a for -rent Special Needs
Housing Development as defined in Section 9112, then, upon the request of the developer, the City shall not
impose any minimum vehicular parking requirement. A development that is a Special Needs Housing
Development shall have either paratransit service or unobstructed access, within one-half mile, to fixed bus
route service that operates at least eight times per day.
(e) Parking Calculations. 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.
(f) Tandem Parking. For purposes of this section, a development may provide on-site parking through tandem
parking or uncovered parking, but not on -street parking.
(g) Parking Incentives/Concessions. If the development meets the requirements of Section 97.21., an applicant
may request parking incentives or concessions beyond those provided in this Section pursuant to Section
9123(x). A request pursuant to this Section shall not increase the number of incentives or concessions to
which the applicant is entitled pursuant to Section 9123(b).
(h) General. The City may, in its discretion, reduce or eliminate a parking requirement for developments of any
type in any location.
(i) City Study. The City may impose a higher parking ratio not to exceed the ratio described in Section 9132(a)(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) Application Requirements. An applicant proposing a housing development pursuant to this Chapter, shall
submit a preliminary application to the Community Development Department 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 Community Development 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.
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(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 explain how granting the request will result in identifiable and actual cost
reductions for the development.
(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) Application Review.
(1) Following receipt of the application, the City shall notify the applicant whether the application is
complete in a manner consistent with the timelines specified in specified in Government Code section
65943.
(2) 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.
(3) 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
processing, but no optional additional assistance shall be deemed approved until embodied in the
housing incentive agreement.
9142 HOUSING INCENTIVE AGREEMENT
(a) Agreement Requirement. 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) Agreement Review. 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
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the Orange County Recorder concurrent with the recording of the final map or within thirty (30) days of
approval if a map is not processed and shall be binding to all future owners and successors in interest.
(c) Agreement Contents. 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 buildings) 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.
(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) A provision, consistent with City Council Policy, establishing a preference for the purchase or rental of
the target units by Tustin residents or individuals employed within the City of Tustin.
(9) 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 as set
forth in Section 9131:
(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 very low income, low income, and
moderate 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 the 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.
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ATTACHMENT 6
PLANNING COMMISSION MINUTES
AUGUST 9, 2022
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MINUTES
COUNCIL CHAMBER & VIDEO CONFERENCE
TUSTIN PLANNING COMMISSION
MEETING
AUGUST 9, 2022
7:00 p.m. CALLED TO ORDER.
Given. INVOCATION: Pastor Dane Counts, King's Way Foursquare Church
Given. PLEDGE OF ALLEGIANCE: Steve Kozak, Chair Pro Tem
Present. ROLL CALL: Chair Mello
Chair Pro Tem Kozak
Commissioners Higuchi, Mason
Absent. Commissioner Chu had an excused absence.
None. PUBLIC INPUT: Hurtado confirmed no public input was received.
CONSENT CALENDAR:
1. APPROVAL OF MINUTES — JULY 12, 2022
RECOMMENDATION:
That the Planning Commission approve the Minutes of the July 12, 2022
Planning Commission meeting, as provided.
Daudt Daudt directed the Commission to move the item forward to a future meeting due
to absences from Higuchi & Kozak at the July 12, 2022 meeting and Chu's
absence at this evening's meeting, therefore; lack of quorum.
Findings 2. FINDINGS REQUIRED BY AB 361 FOR THE CONTINUED USE OF
made. TELECONFERENCE FOR MEETINGS
In order for the Planning Commission to continue to have the option to
meet via teleconference during the pandemic, AB 361 requires the
Commission to make specific findings at least every thirty (30) days.
RECOMMENDATION:
Make the following findings by a majority vote of the Planning
Commission:
Minutes — Planning Commission August 9, 2022 — Page 1 of 5
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a. A state of emergency has been proclaimed by California's Governor
due to the COVID-19 pandemic, and continues to be in effect;
b. The Commission has reconsidered the circumstances of the state of
emergency; and
c. State and local officials continue to recommend measures to promote
social distancing to slow the spread of COVID-19.
Hurtado Hurtado confirmed no public comments received.
Motion: It was moved by Mason, seconded by Kozak that findings were made by a
majority vote of the Planning Commission. *Motion carried 4-0-1. **Chu had an
excused absence.
PUBLIC HEARING:
Adopted 3. CODE AMENDMENT 2022-0004 (ORDINANCE NO. 1528) — DENSITY
Reso. No. BONUS ORDINANCE UPDATE
4455, as
presented.
SUMMARY:
This Project is a City -initiated request to amend Chapter 1 (Incentives
for the Development of Affordable Housing) of Article 9 (Land Use) to
bring the Tustin City Code (TCC) into conformance with current State
Density Bonus Law (Government Code Section 65915-65918). The
State Density Bonus Law provides developers with tools to encourage
the development of affordable housing by providing additional density
above and beyond the Zoning and General Plan density. State Density
Bonus Law also provides developers with incentives intended to help
make the development of affordable housing economically feasible.
Other tools include reduced parking requirements, and incentives/
concessions and waivers of development standards such as reduced
setbacks and minimum square footage requirements.
RECOMMENDATION:
That the Planning Commission adopt Resolution No. 4455,
recommending that the City Council adopt Ordinance No. 1528, amending
Chapter 1 (Incentives for the Development of Affordable Housing) of
Article 9 (Land Use) of the TCC to bring the code into compliance with
State Density Bonus Law (Government Code Section 65915-65918).
Huitron Presentation given.
Higuchi Higuchi asked questions relative to Subsection G - Equity Sharing and market
value.
�J
Minutes — Planning Commission August 9, 2022 — Page 2 of 5
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Huitron Huitron responded to Commissioner Higuchi's questions regarding equity
sharing and market value.
Mason Mason asked questions relative to equity sharing, sale of affordable units and
when an affordable unit is no longer considered affordable.
Huitron Huitron responded to Mason's questions.
Mello Mello asked additional questions relative to the sale of affordable units and equity
sharing, history of previous affordable units that have sold, and how city's share
of equity is utilized.
Daudt Daudt responded to Mello's questions.
Willkom Willkom provided additional response to Mello's question relative to previous
affordable housing units that have been re -sold.
Huitron Huitron provided additional clarifying answers to Mello's questions.
7:23 p.m. Opened the public hearing.
Mr. John Mr. Garay provided comments on parking requirements and concerns he had
Garay relative to type of affordable units provided by developers.
7:27 p.m. Closed the public hearing.
Higuchi Higuchi asked about allocation of affordable units within a project.
Huitron Huitron provided a response to Higuchi's question.
Higuchi Higuchi provided comments on the application of density bonus law, his
experience working with density bonus requirements and made clear that the
proposed amendments are to comply with State law.
Huitron Huitron provided additional explanation on City process on reviewing projects
that include affordable units.
Mello Mello asked follow up questions regarding the proportionality requirements of
affordable units.
Huitron Huitron provided a response to Mello's question.
Willkom Willkom provided further clarification to the proportionality requirement of
affordable units on project sites.
Kozak Kozak asked if there were any applications that are in process or pending that
propose affordable units.
Minutes — Planning Commission August 9, 2022 — Page 3 of 5
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Willkom One of the pending applications is the multi -family residential project at the Tustin
Legacy. There is a pending application that will be brought before the
Commission and includes a density bonus request.
Higuchi Higuchi provided final thoughts on density bonus code and the potential to deed
restrict ADUs1JADUs.
Huitron Huitron responded to Higuchi that Government Code prohibits cities from
requiring a deed restriction on ADUs; however, the City can still continue to
require deed restrictions on JADUs.
Motion: It was moved by Higuchi, seconded by Mason, to adopt Resolution No. 4455, as
presented. Motion carried 4-0-1 **
REGULAR BUSINESS:
Received & 4. LEGISLATIVE UPDATE —AUGUST 2022
filed.
Staff will be providing a brief update to the Commission on pending
legislation related to Community Development that is being monitored.
RECOMMENDATION:
That the Planning Commission receive and file the report.
Huitron Presentation given.
Higuchi Higuchi asked questions relative to advocacy at the County and city level.
Huitron Huitron provided a response to Higuchi's question.
Mason Mason asked questions regarding the Council's lobbying efforts.
Huitron Huitron provided an answer to Mason's questions and provided recent examples
of council's efforts.
Motion: Received and filed.
STAFF CONCERNS:
Willkom Willkom updated the Commission — recently the City Council authorized staff to
hire a consultant to look into the DCCSP and the RHASP to reassess the
effectiveness of the specific plans (i.e. look into vacant sites, incentives to
promote development, any constraints found, etc.). Expecting the consultant to
begin work in the next few weeks.
Minutes -- Planning Commission August 9, 2022 — Page 4 of 5
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COMMISSION CONCERNS:
Mason Mason mentioned graffiti; a crime in progress; homeless drug activity; toured
crisis center; let's go back out and tour the community (with the Chief of Police,
CC, etc.) in order to reconnect with the communfty.
Higuchi Higuchi mentioned his ride -along with TPA years ago; echoed Mason's comment
on the next walking tour.
Kozak Kozak attended Tustin Area Community Arts Council's "Wizard of Oz".
Mello Mello echoed fellow Commissioners comments with, the concerns taking place;
he thanked Huitron; he asked about the street signs that are no longer posted on
Walnut Avenue and Tustin Ranch Road; what does the traffic situation look like
at the new Costco — he noticed traffic on El Camino over the weekend; the Red
Hill site behind the school — are they under construction or is illegal dumping
occurring?
Willkom Willkom to ask Public Works about the street signs, The City has received the
building permit application. Close to issuing the grading permit and the building
permit application is being reviewed. The property owner to be notified of the
overgrown vegetation.
Higuchi Engaged Tustin is a great application
The next regular meeting of the Planning Commission is scheduled for
Tuesday, August 23, 2022.
DAVID J E L L 0, JR.
Chairperson
,
W
111'L',jAjtIII.
JUWNA L. WILLKOM
Plannmg Commission Secretary
Minutes — Planning Commission August 9, 2022 — Page 5 of 5
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ATTACHMENT C
DRAFT ORDINANCE NO. 1528
(CLEAN VERSION)
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MI 00191110 F-, 0 [y al[*1 ffN7Wij
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TUSTIN, CALIFORNIA, AMENDING AND RESTATING IN
ITS ENTIRETY CHAPTER 1 OF ARTICLE 9 (LAND USE) OF
THE TUSTIN CITY CODE (CODE AMENDMENT 2022-0004)
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
expediate 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 Chapter 1 of Article 9 of the Tustin City Code (TCC), which contains
provisions for density bonus and development incentives, concessions, and
waivers for affordable housing, was last updated in October of 2017 with the
adoption of City Council Ordinance No. 1484.
C. That a City initiated Code Amendment 2022-0004 has been prepared to amend
and restate in its entirety Chapter 1 of Article 9 of the TCC to comply with the State
Density Bonus Law (Government Code Sections 65915-65918) as modified by
Assembly Bills (AB) 2797, 2753, 991,1763, and 2345 and Senate Bills (SB) 1227,
290, and 728.
D. That Code Amendment 2022-0004 updates existing TCC provisions pertaining to
density bonus and development incentives, concessions, and waivers for
affordable housing, which incentivize the 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 persons.
E. That on August 9, 2022, the Planning Commission adopted Resolution No. 4455,
and recommended that the City Council adopt Ordinance No. 1528, approving
Code Amendment 2022-0004 amending and restating in its entirety Chapter 1 of
Article 9 of the Tustin City Code relating to incentives for the development of
affordable housing.
F. That on September 20, 2022, a public hearing was duly noticed, called, and held
on Code Amendment 2022-0004 by the City Council.
Ordinance No. 1528
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SECTION 2. Chapter 1 (Incentives for the Development of Affordable Housing) of Article
9 (Land Use) of the Tustin City Code is hereby amended and restated in its entirety as
stated in the revised Chapter 1 attached hereto and incorporated herein by this reference.
SECTION 3. Effective Date. This Ordinance shall take effect on the 31St day after its
adoption. The City Clerk or his or her duly appointed deputy shall certify to the adoption
of the Ordinance and cause this Ordinance to be published as required by law.
SECTION 4. CEQA Exemption. The City Council finds that this Ordinance is not subject
to the California Environmental Quality Act ("CEQA"; Cal. Pub. Resources Code Section
21000 et seq.) 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 State Density
Bonus Law contains mandatory provisions that the City must implement, whether or not
it adopts its own ordinance, therefore the amendment does not create a new land use
regulation.
SECTION 5. Severability. If any section, sub -section, clause or phrase in this Ordinance
or the application thereof to any person or circumstances is for any reason held invalid,
the validity of the remainder of this Ordinance or the application of such provisions to
other persons or circumstances shall not be affected.
PASSED AND ADOPTED, at a regular meeting of the City Council of the City of
Tustin on this 20th day of September, 2022.
AUSTIN LUMBARD, Mayor
CARRIE WOODWARD, Acting City Clerk
Ordinance No. 1528
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STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF TUSTIN )
CERTIFICATION FOR ORDINANCE NO. 1528
CARRIE WOODWARD, Acting 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 5; that the above and foregoing Ordinance No.
1528 was duly and regularly introduced at a regular meeting of the Tustin City Council,
held on the September 20, 2022, and was given its second reading, passed, and adopted
at a regular meeting of the City Council held on the , 2022, by the following vote:
COUNCILMEMBER AYES:
COUNCILMEMBER NOES:
COUNCILMEMBER ABSTAINED:
COUNCILMEMBER ABSENT:
CARRIE WOODWARD, Acting City Clerk
Ordinance No. 1528
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Attachment: Chapter I Incentives for the Development of Affordable Housing
Ordinance No. 1528
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ARTICLE 9 - LAND USE
CHAPTER 1 INCENTIVES FOR THE DEVELOPMENT OF AFFORDABLE HOUSING
CHAPTER 1 INCENTIVES FOR THE DEVELOPMENT OF AFFORDABLE HOUSING
PART 1 GENERAL
(r1 IIIi IIIi111J:110114—A1►Ult►III i4►1111
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, lower income students, disabled veterans and
homeless persons in accordance with California Density Bonus Law (Government Code section 65915 et seq.). 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 regulations and procedures set forth in this Chapter shall apply citywide. 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.
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.
"Affordable Rent" means as defined in Health and Safety Code section 50053. The term applies to
rental units.
"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.
"Concession or Incentive" means the concession(s) and incentive(s) as specified in Government Code
section 65915(k) and Section 9123 of this Chapter.
"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 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.
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"Housing Authority" means the Tustin Housing Authority.
"Housing Development" means a development project consisting of five (5) or more residential units,
including single-family, multifamily 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 in available residential units. For the purpose of
calculating a density bonus, 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 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 or bus rapid transit station, or the
intersection of two (2) or more major bus routes with a frequency of service interval of fifteen (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.
"Natural or constructed Impediments" includes, but is not limited to freeways, rivers, mountains, and
bodies of water, but does not include residential structures, shopping centers, parking lots, or rails used for
transit.
"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 8 of the United States Housing Act of 1937.
"Qualified nonprofit housing corporation" means a nonprofit housing corporation organized pursuant to
Section 501(c)(3) of the Internal Revenue Code that has received a welfare exemption under Section 214.15 of
the Revenue and Taxation Code for properties intended to be sold to low-income families who participate in
a special no -interest loan program.
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"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 Development" 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. Special Needs Housing
Development is more fully defined in Section 51312 of the Health and Safety Code, and supportive housing
development is more fully defined in Section 50675.14 of the Health and Safety Code.
"Specific Adverse impact" means a significant, quantifiable, direct, and unavoidable impact, based on
objective, identified written public health or safety standards, policies, or conditions as they existed on the
date the application was deemed complete.
"Student housing development" means any housing used exclusively for undergraduate, graduate, or
professional students enrolled full time at an institution of higher education accredited by the Western
Association of Schools and Colleges or the Accrediting Commission for Community and Junior Colleges.
"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,
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 9132 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) Housing for Lower Income Households. Ten (10) percent of the total units of the housing development as
targeted units affordable to lower income households; or
(2) Housing for Very Low Income Households. Five (5) percent of the total units of the housing development
as targeted units affordable to very low income households; or
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(3) Senior Housing or Mobile Home Park. 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; or
(4) Housing for Moderate Income Households. Ten (10) percent of the total units of a housing development
are sold to persons and families of moderate income, provided that all units in the development are
offered to the public for purchase; or
(5) Housing for Transitional Foster Youth, Disabled Veterans, Homeless Persons. Ten (10) 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 fifty-five
(55) years and shall be provided at the same affordability level as very low-income units; or
(6) Student Housing. Twenty (20) percent of the total units of the housing development for lower income
students in a student housing development that meets the following requirements:
(i) All units in the student housing development will be used exclusively for undergraduate, graduate, or
professional students enrolled full time at an institution of higher education accredited by the
Western Association of Schools and Colleges or the Accrediting Commission for Community and
Junior Colleges. In order to be eligible under this subclause, the developer shall, as a condition of
receiving a certificate of occupancy, provide evidence to the City that the developer has entered into
an operating agreement or master lease with one or more institutions of higher education for the
institution or institutions to occupy all units of the student housing development with students from
that institution or institutions. An operating agreement or master lease entered into pursuant to this
subclause is not violated or breached if, in any subsequent year, there are not sufficient students
enrolled in an institution of higher education to fill all units in the student housing development.
(ii) The applicable 20 -percent units will be used for lower income students.
(iii) The rent provided in the applicable units of the development for lower income students shall be
calculated at 30 percent of 65 percent of the area median income for a single -room occupancy unit
type.
(iv) The development will provide priority for the applicable affordable units for lower income students
experiencing homelessness. A homeless service provider, as defined in paragraph (3) of subdivision
(e) of Section 103577 of the Health and Safety Code, or institution of higher education that has
knowledge of a person's homeless status may verify a person's status as homeless for purposes of
this subparagraph.
For purposes of calculating a density bonus granted pursuant to this Subsection 6, the term "unit" means
one rental bed and its pro rata share of associated common area facilities. The units described in this subsection
shall be subject to a recorded affordability restriction of 55 years.
(7) One hundred (100) percent of all units in the development, including total units and density bonus units,
but exclusive of a manager's unit or units, are for lower income households, as defined by Section 50079.5
of the Health and Safety Code, except that up to twenty (20) percent of the units in the development,
including total units and density bonus units, may be for moderate -income households.
(8) 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), (5), (6) or (7) of this subsection.
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(9) For the purposes of this section, "total units" or "total dwelling units" excludes units added by a density
bonus awarded pursuant to this section or any local law granting a greater density bonus but includes
Voluntary Workforce Housing Incentive Program units pursuant to Chapter 9B.
(b) Land Donation. 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(h). This increase shall be in addition to any
increase in density mandated by Section 9121(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 Section
9121(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 with appropriate
development standards for development 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.
(4) No later than the date of approval of the final subdivision map, parcel map, or of the residential
development application, 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.
(5) The transferred land and the affordable units shall be subject to a deed restriction ensuring continued
affordability of the units consistent with Section 9131(d) and (e), which shall be recorded on the property
at the time of dedication.
(6) 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.
(7) 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.
(8) 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) Housing Development with Child Care Facility. 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
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(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) Apartment to Condominium Conversion Housing Development. When an applicant for approval to convert
apartments to a condominium project pursuant to Section 9274 of this Code agrees to provide at least thirty-
three (33) percent of the total units of the proposed condominium project to persons and families of low or
moderate income, or fifteen (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 twenty-five (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.
(i) In reference to subsections 9121 (d) (1) and 9121 (d) (2), 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 and
(ii) 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 ninety (90) days of receipt of a written proposal.
(iii) An applicant shall be ineligible for a density bonus or other incentives or concessions under this
subsection 9121 (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:
The proposed condominium project, inclusive of the units replaced, contains affordable
units at the percentages set forth in Section 9121(a), or
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) Ineligible Housing Development Project. An applicant shall be ineligible for a density bonus or any other
incentives or concessions under this Chapter if the housing development is proposed on any property that
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includes a parcel or parcels on 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 levels affordable to persons and families of lower or very low income;
or occupied by lower or very low income households, 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.
9122 AMOUNT OF DENSITY BONUS
Amount of Density Bonus. The amount of density bonus granted shall be based on the category and
percentage of affordable housing units proposed, as reflected in the following tables:
(a) Lower Income Households. For housing developments meeting the criteria of Section 9121(a)(1), the density
bonus shall be calculated as follows:
Percentage Low -Income Units
Percentage Density Bonus
10
20
11
21.5
12
23
13
24.5
14
26
15
27.5
16
29
17
30.5
18
32
19
33.5
20
35
21
38.75
22
42.5
23
46.25
24
50
(b) Very Low Income Households. For housing developments meeting the criteria of Section 9121(a)(2), the
density bonus shall be calculated as follows:
Percentage Very Low Income Units
Percentage Density Bonus
5
20
6
22.5
7
25
8
27.5
9
30
10
32.5
11
35
12
38.75
13
42.5
14
46.25
15
50
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(c) Moderate Income Households. For housing developments meeting the criteria of Section 9121(a)(4), the
density bonus shall be calculated as follows:
Percentage Moderate -Income Units
Percentage Density Bonus
10
5
11
6
12
7
13
8
14
9
15
10
16
11
17
12
18
13
19
14
20
15
21
16
22
17
23
18
24
19
25
20
26
21
27
22
28
23
29
24
30
25
31
26
32
27
33
28
34
29
35
30
36
31
37
32
38
33
39
34
40
35
41
38.75
42
42.5
43
46.25
44
50
(d) Senior Housing or Mobile Home Park. For housing developments meeting the criteria of Section 9121(a)(3),
the density bonus shall be 20 percent of the number of senior housing units.
(e) Transitional Foster Youth, Disabled Veterans, and Homeless Persons. For housing developments meeting the
criteria of Section 9121(a)(5), the density bonus shall be 20 percent of the number of the type of units giving
rise to a density bonus thereunder.
(f) Student Housing. For housing developments meeting the criteria of Section 9121(a)(6), the density bonus shall
be 35 percent of the student housing units.
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(g) One Hundred Percent Affordable. For housing developments meeting the criteria of Section 9121(a)(7), the
following shall apply:
(1) Except as provided in subsection (2) below, the density bonus shall be 80 percent of the number of units
for lower income households.
(2) If the housing development is located within one-half mile of a major transit stop, no maximum controls
on density shall be imposed.
(h) Land Donation. When an applicant for a tentative subdivision map, parcel map, or other residential
development approval donates land to the City in accordance with Section 9121(b), the applicant shall be
entitled to a 15 -percent increase above the otherwise maximum allowable residential density for the entire
development, as follows:
Percentage Very Low Income Units (Land Donation)
Percentage Density Bonus
10
15
11
16
12
17
13
18
14
19
15
20
16
21
17
22
18
23
19
24
20
25
21
26
22
27
23
28
24
29
25
30
26
31
27
32
28
33
29
34
30
35
9123 INCENTIVES OR CONCESSIONS
(a) Applicability. 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. 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 as specified in Section 9131.
(2) The concession(s) or incentive(s) would have a specific adverse impact upon public health and safety 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.
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(b) Number. The applicant shall be entitled to receive the following number of concessions or incentives:
Target Group
Target Units
(Percent)
Maximum Incentives or
Concessions
Very Low Income
5
1
10
2
15
3
Low Income
10
1
17
2
24
3
Moderate Income
(for -sale units only)
10
1
20
2
30
3
100% of Total Units
restricted to lower income
(maximum 20% moderate)
and located within % mile of
major transit stop
100 (excluding manager's
units)
4 and up to 3 additional stories,
or 33 feet.
Student Housing
20
1
(c) Type. 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 and actual costs reductions, including, but not limited
to:
(i) Reduced minimum lot size.
(ii) Reduced minimum setbacks.
(iii) Reduced minimum street standards such as reduced minimum street width.
(iv) Increased maximum lot coverage.
(v) Increased building height.
(vi) 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
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.
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9124 WAIVERS OR REDUCTIONS OF DEVELOPMENT STANDARDS
(a) Applicability. 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) Review. 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, or
safety, 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 an adverse impact on any real property
that is listed in the California Register of Historical Resources.
(3) The waiver or reduction of development standards would be contrary to state or federal law.
9125 OPTIONAL ADDITIONAL ASSISTANCE
(a) Applicability. The City may approve additional assistance to facilitate the inclusion of more Targeted Units
than are required by this Chapter.
(b) Type. The City Council may approve any of the following in its sole discretion, including, but not limited to:
(1) A density bonus greater than that required in Section 9121 of this Chapter.
(2) A proportionately lower density bonus than what is required by this Chapter when the housing
development does not meet the requirements of this Chapter.
(3) Waived, reduced, or deferred planning, plan check, building permit and/or development impact fees.
(4) Direct financial aid (e.g., Low and Moderate Income Housing Asset 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 STANDARD REQUIREMENTS
9131 STANDARD REQUIREMENTS
(a) Location. 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) Time of Construction. 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) Bedroom Count. 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) Affordable Housing Restrictions — Rental Units. An applicant shall agree to, and the City shall ensure,
continued affordability of all low- and very low-income rental units that qualified the applicant for the award
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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.
(e) Rents Units. Except as otherwise provided in subsection 9131(e)(1), Rents for the lower income density bonus
units shall be set at an affordable rent.
(1) For housing developments meeting the criteria of subsection 9121(a)(7), and except as my otherwise be
required by the Surplus Land Act, rents for all units in the development, including both base density and
density bonus units, shall be as follows:
(i) The rent for at least 20 percent of the units in the development shall be set at an affordable rent.
(ii) The rent for the remaining units in the development shall be set at an amount consistent with the
maximum rent levels for a housing development that receives an allocation of state or federal low-
income housing tax credits from the California Tax Credit Allocation Committee.
(f) Affordable Housing Restrictions — For Sale units. An applicant shall agree to ensure, and the City shall ensure,
that a for -sale unit that qualified the applicant for the award of a density bonus meets either of the following
conditions:
(1) The unit is initially occupied by a person or family of very low, low or moderate -income, as required, and
is offered at an affordable housing cost and is subject to an equity sharing agreement.
(2) The unit is purchased by a qualified nonprofit housing corporation pursuant to a recorded contract that
satisfies all of the requirements specified in paragraph (10) of subdivision (a) of Section 402.1 of the
Revenue and Taxation Code and that includes all of the following:
(i) A repurchase option that requires a subsequent purchaser of the property that desires to resell or
convey the property to offer the qualified nonprofit corporation the right to repurchase the property
prior to selling or conveying that property to any other purchaser.
(ii) An equity sharing agreement.
(iii) Affordability restrictions on the sale and conveyance of the property that ensure that the property
will be preserved for lower income housing for at least 45 years for owner -occupied housing units
and will be sold or resold only to persons or families of very low, low, or moderate income.
(g) Equity Sharing. The City shall enforce an equity -sharing agreement required pursuant to subsections 9131(f)(1)
or 9131(f)(2), 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.
(2) Except as provided in subsection 9131(g)(5), 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.
(3) 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.
(4) For purposes of this subsection, the City's proportionate share of appreciation shall be equal to the ratio
of the City's initial subsidy to the fair market value of the home at the time of initial sale.
(5) If the unit is purchased or developed by a qualified nonprofit housing corporation, the City may enter into
a contract with the qualified nonprofit housing corporation under which the qualified nonprofit housing
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corporation would recapture any initial subsidy and its proportionate share of appreciation if the qualified
nonprofit housing corporation is required to use 100 percent of the proceeds to promote homeownership
for lower income households within the jurisdiction of the City
(h) Design. 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.
(i) Housing Incentive Agreement. 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.
9132 PARKING STANDARDS
(a) Parking. Upon the request of the developer, the vehicular parking ratio, inclusive of parking for persons with a
disability and guests, of a development meeting the criteria of Section 9121(a), shall not exceed the following
ratios:
Number of Bedrooms
Parking Ratio
0-1
1 space
2-3
1.5 spaces
4 or more
2.5 spaces
(1) Notwithstanding paragraph (a) above, if a development includes at least 20 percent low-income units
pursuant to Section 9121(a)(1) or at least 11 percent very low income units pursuant to 9121 (a)(2), is
located within one-half mile of a major transit stop, and there is unobstructed access to the major transit
stop from the development, then, upon the request of the developer, the City shall not impose a vehicular
parking ratio, inclusive of parking for persons with a disability and guests, that exceeds 0.5 spaces per
unit. Notwithstanding paragraph (a) above, if a development includes at least 40 percent moderate -
income units pursuant to Section 9121(a)(3), is located within one-half mile of a major transit stop, and
the residents of the development have unobstructed access to the major transit stop from the
development then, upon the request of the developer, the City shall not impose a vehicular parking ratio,
inclusive of parking for persons with a disability and guests, that exceeds 0.5 spaces per bedroom. The
following table provides the ratios described in this subsection, for a project meeting the eligibility
criteria:
Housing Development
Parking Ratio
Criteria
Type
Low income units
0.5 space
1) located within % mile of a major transit stop
(at least 20 percent)
2) unobstructed access to the major transit stop
3) Upon request of the developer
Very low income units
0.5 space
1) located within % mile of a major transit stop
(at least 11 percent)
2) unobstructed access to the major transit stop
3) Upon request of the developer
Moderate income units
0.5 space
1) located within % mile of a major transit stop
(at least 40 percent)
2) unobstructed access to the major transit stop
3) Upon request of the developer
(b) One Hundred Percent Affordable and Near Transit or Senior Citizen Housing. Notwithstanding paragraph (a)
above, if a development consists solely of rental units with an affordable housing cost to low income families,
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exclusive of a manager's unit(s), then, upon the request of the developer, the City shall not impose a vehicular
parking standards if the development meets either of the following criteria (1) located within one-half mile of
a major transit stop and there is unobstructed access to the major transit stop from the development, or (2) is
a for -rent Senior Citizen Housing 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.
(c) Special Needs Housing. Notwithstanding paragraph (a) above, if a development is a for -rent Special Needs
Housing Development as defined in Section 9112, then, upon the request of the developer, the City shall not
impose any minimum vehicular parking requirement. A development that is a Special Needs Housing
Development shall have either paratransit service or unobstructed access, within one-half mile, to fixed bus
route service that operates at least eight times per day.
(e) Parking Calculations. 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.
(f) Tandem Parking. For purposes of this section, a development may provide on-site parking through tandem
parking or uncovered parking, but not on -street parking.
(g) Parking Incentives/Concessions. If the development meets the requirements of Section 9121, an applicant
may request parking incentives or concessions beyond those provided in this Section pursuant to Section
9123(a). A request pursuant to this Section shall not increase the number of incentives or concessions to
which the applicant is entitled pursuant to Section 9123(b).
(h) General. The City may, in its discretion, reduce or eliminate a parking requirement for developments of any
type in any location.
(i) City Study. The City may impose a higher parking ratio not to exceed the ratio described in Section 9132(a)(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) Application Requirements. An applicant proposing a housing development pursuant to this Chapter, shall
submit a preliminary application to the Community Development Department 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 Community Development 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.
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(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 explain how granting the request will result in identifiable and actual cost
reductions for the development.
(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) Application Review.
(1) Following receipt of the application, the City shall notify the applicant whether the application is
complete in a manner consistent with the timelines specified in specified in Government Code section
65943.
(2) 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.
(3) 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
processing, but no optional additional assistance shall be deemed approved until embodied in the
housing incentive agreement.
9142 HOUSING INCENTIVE AGREEMENT
(a) Agreement Requirement. 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) Agreement Review. 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
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the Orange County Recorder concurrent with the recording of the final map or within thirty (30) days of
approval if a map is not processed and shall be binding to all future owners and successors in interest.
(c) Agreement Contents. 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.
(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) A provision, consistent with City Council Policy, establishing a preference for the purchase or rental of
the target units by Tustin residents or individuals employed within the City of Tustin.
(9) 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 as set
forth in Section 9131:
(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 very low income, low income, and
moderate 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 the 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.
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ATTACHMENT D
DRAFT ORDINANCE NO. 1528
(REDLINED VERSION)
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ARTICLE 9 - LAND USE
CHAPTER 1 INCENTIVES FOR THE DEVELOPMENT OF AFFORDABLE HOUSING
CHAPTER 1 INCENTIVES FOR THE DEVELOPMENT OF AFFORDABLE HOUSING
PART 1 GENERAL
PJ111ii 111ii 111111'11111.4Z91,1VAL110lt►111111:11L1kI
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, lower income students, disabled veterans and
homeless persons in accordance with California 1 Density Bonus Law
(Government Code section 65915 et seg.). 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 regulations and procedures set forth in this
Chapter shall apply citywide. 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.
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 se^+;^^ 50-0-5-2.5. The +^r.,,
applies te fE)F sale units. in the HeusiRg Incentive AgFeement, On its sele diseFetien, the City er the Heusipg
Ce4section 50052.5. The term applies to for -sale units.
"Affordable Rent" means as defined in Health and Safety Code Sec-tiensection 50053. The term applies
to rental units.
"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 aas defined OR _S^^*0^^ 1351 ^{ the Civil Cede
"Concession or Incentive" means the concession(s) and incentive(s) as specified in Government Code
SectieRsection 65915(k) and Section 9123 of this Chapter.
"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
Tustin, California, Code of Ordinances
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according to
Pestahimshedd in SeCtieR 912 .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 p., ;_,-t=a development prosect consisting of five (5) or
more residential units, including single-family, multifamily 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) ^" leFein available
residential units. T#eFor the purpose of calculating a density bonus, the residential units shall be on
contiguous sites that are the subject of ones) 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 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
afford 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 or bus rapid transit station, or the
intersection of two (2) or more major bus routes with a frequency of service interval of fifteen (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 ,,, eeptien of the ""�"�
T—usti , C.,eeifi., Plan which exch AeS the ,J.,Y„-it„ benus alle.. ed by this Ghapt...-
"Natural or constructed Impediments" includes, but is not limited to freeways, rivers, mountains, and
bodies of water, but does not include residential structures, shopping centers, parking lots, or rails used for
transit.
"Non -Restricted Unit" means all units within a housing development excluding the targeted units.
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"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 5ectieRsection 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.
"Qualified nonprofit housing corporation" means a nonprofit housing corporation organized pursuant to
Section 501(c)(3) of the Internal Revenue Code that has received a welfare exemption under Section 214.15 of
the Revenue and Taxation Code for properties intended to be sold to low-income families who participate in
a special no -interest loan program.
"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 Sectieesection 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 Development" 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. Special Needs Housing
Development is more fully defined in Section 51312 of the Health and Safety Code, and supportive housing
development is more fully defined in Section 50675.14 of the Health and Safety Code.
"Specific Adverse impact" means a significant, quantifiable, direct, and unavoidable impact, based on
objective, identified written public health or safety standards, policies, or conditions as they existed on the
date the application was deemed complete.
"Student housing development" means any housing used exclusively for undergraduate, graduate, or
professional students enrolled full time at an institution of higher education accredited by the Western
Association of Schools and Colleges or the Accrediting Commission for Community and Junior Colleges.
"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
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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,
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 o'�9132 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) Housing for Lower Income Households. Ten (10) percent of the total units of the housing development as
targeted units affordable to lower income households; or
(2) Housing for Very Low Income Households. Five (5) percent of the total units of the housing development
as targeted units affordable to very low income households; or
(3) Senior Housing or Mobile Home Park. 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.
(4) Housing for Moderate Income Households. Ten (10) percent of the total units +eof a e9FRMOR
,nteresthousing development ferare sold to persons and families of moderate income, provided that all
units in the development are offered to the public for purchase-, or
(5) Housing for Transitional Foster Youth, Disabled Veterans, Homeless Persons. Ten (10) 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 fifty-five
(55) years and shall be provided at the same affordability level as very low income units -Lor
(61 Student Housing. Twenty (20) percent of the total units of the housing development for lower income
students in a student housing development that meets the following requirements:
(i) All units in the student housing development will be used exclusively for undergraduate, graduate, or
professional students enrolled full time at an institution of higher education accredited by the
Western Association of Schools and Colleges or the Accrediting Commission for Community and
Junior Colleges. In order to be eligible under this subclause, the developer shall, as a condition of
receiving a certificate of occupancy, provide evidence to the City that the developer has entered into
an operating agreement or master lease with one or more institutions of higher education for the
institution or institutions to occupy all units of the student housing development with students from
that institution or institutions. An operating agreement or master lease entered into pursuant to this
subclause is not violated or breached if, in any subsequent year, there are not sufficient students
enrolled in an institution of higher education to fill all units in the student housing development.
The applicable 20 -percent units will be used for lower income students.
iii) The rent provided in the applicable units of the development for lower income students shall be
calculated at 30 percent of 65 percent of the area median income for a single -room occupancy unit
type.
(iv) The development will provide priority for the applicable affordable units for lower income students
experiencing homelessness. A homeless service provider, as defined in paragraph (3) of subdivision
(e) of Section 103577 of the Health and Safetv Code, or institution of higher education that has
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knowledge of a person's homeless status may verify a person's status as homeless for purposes of
this subparagraph.
For purposes of calculating a density bonus granted pursuant to this Subsection 6, the term "unit" means
one rental bed and its pro rata share of associated common area facilities. The units described in this subsection
shall be subject to a recorded affordability restriction of 55 years.
(7) One hundred (100) percent of all units in the development, including total units and density bonus units,
but exclusive of a manager's unit or units, are for lower income households, as defined by Section 50079.5
of the Health and Safety Code, except that up to twenty (20) percent of the units in the development,
including total units and density bonus units, may be for moderate -income households.
L8) 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), (5 6) or (57) of this subsection.
(79) For the purposes of this SeCtiORsectlon, "total units" or "total dwelling units" de net incl, deexcludes units
added by a density bonus awarded pursuant to this Sectiensection or any local law granting a greater
density bonus- but includes Voluntary Workforce Housing Incentive Program units pursuant to Chapter
9B.
(b) Land Donation. 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-(hL This increase shall be in addition to any
increase in density mandated bysectien Section 9121(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 °- ibsertien Section 9121(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 with appropriate
development standards for development at the density described in paragraph (3) of subdivision (c) of
Government Code Sectieesection 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
Fn-.,;Ohln
(4) No later than the date of approval of the final subdivision map, parcel map, or of the residential
development application, 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 Sectieesection 65583.2 if the design is not
reviewed by the City prior to the time of transfer.
(45) The transferred land and the affordable units shall be subject to a deed restriction ensuring continued
affordability of the units consistent withseetiensSection 9131(d) and (e}L which shall be recorded on
the property at the time of dedication.
DocuSign Envelope ID: 239BD86B-8354-4090-8C4C-4B4C6D1C4442
(56) 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.
(67) 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.
(-78) 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) Housing Development with Child Care Facility. 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 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) Apartment to Condominium Conversion Housing Development. When an applicant for approval to convert
apartments to a condominium project pursuant to Section 9274 of this Code agrees to provide at least thirty-
three (33) percent of the total units of the proposed condominium project to persons and families of low or
moderate income, or fifteen (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
Sectionsection 65915:
(1) A density bonus to increase the number of units by twenty-five (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 (i) In reference to subsections 9121 (d) (1) and 9121 (d) (2), 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.. and
4 ii) 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 ninety (90) days of receipt of a written proposal.
DocuSign Envelope ID: 239BD86B-8354-4090-8C4C-4B4C6D1C4442
�__LL An applicant shall be ineligible for a density bonus or other incentives or concessions under this
subsection 9121 (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:
H}a. The proposed condominium project, inclusive of the units replaced, contains affordable
units at the percentages set forth in Section 9121(a), or
{44!L. 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.
R1 —Ineligible Housing Development Prosect. An applicant shall be r^^s rI_ICA^� ^i*h&P R_^ the sAt f
ineligible for a density bonus or ^^ a sate that Fneets the f^"^ ^^
eFiteF;
(iii) Wit (134) mile of a major traRSit Step- aT,E_1
any C#y
previsiOR
other incentives,
muitually agreed upoR by or concessions under this Chapter if the developer and the City and
DocuSign Envelope ID: 239BD86B-8354-4090-8C4C-4B4C6D1C4442
(7) if the developer of the affe r.d-ah-le units; d- A_P_s; nA-t C --A- Fn MP_.nC_e �.AVA C --A- A -f thA';P n R
APrArPIAACP With +h,, +�r.-..,I;r, ,,s ., ,irl e.d ;., the agreemeRt f.,r partnered housing, the City AY
.,;+hhRld cPr+Ff!c P,; Rf e y f..r+he eernmerriaI development under em#r„w+�„r, r,r;l +h.,
.J.,.,.,I. peF has c pleted- .,f the -,ff.,rd--,hl„ units.
n
IMM OIL "N
(f) A proposed housing develepme^+ which on any property that includes a parcel or parcels on 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
levels affordable to persons eFand families of lower or very low income shall be iReligih_le f„r ,-„r„ ;+„ hr Rus .
or occupied by lower or aRy eth ineeRt` es erg ss+eRs uR .el- this P@rivery low income households,
unless the proposed housing development replaces those units in accordance with Government Code
5ectieesection 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.
9122 AMOUNT OF DENSITY BONUS
4Amount of Density Bonus. The amount of density bonus granted shall
vary be based on the amount by which thecategory and percentage of affordable housing units
exceeds the pereeRt ge est hl;shedproposed, as reflected in the following tables:
(a) Lower Income Households. For housing developments meeting the criteria of Section 9121(a})(1), the density
bonus shall be calculated as follows:
TaFget
Percentage
4dd44eRal
A dd;tdRRRl
GFeup
of
Percentage
Target
PeRsit
Density
TaFgetLow-Income Units
WRots
BE)RUs
(exeludiRg Pe"
R. W&s �
Bonus
DocuSign Envelope ID: 239BD86B-8354-4090-8C4C-4B4C6D1C4442
Inc -Amp}
Percentage Density Bonus
5
€ac -h-1
3 5
22.5
10 peFeeRt
20perfent
percent
;;,tease
percent,
n
9
30
10
32.5
11
35
12
38.75
13
5 Pe maximum
e�11
—
int
percent
t
n e r -e -a -se
21.5
12
23
10 peFeent
Each 1
4:0
INA ed-nr-+n I .,,.,,, +e. -13
pereen24.5 t
t,
peFeent
-3-5
peFeent
Hou4Re 4
26
per -est
Trans4monal foster youth, disabledye+.,rangy
10rt
M
r hemeless n ns'15
27.5
per-ent
16
29
17
30.5
18
32
19
33.5
Vey Low
30
15
€ae#I
ineeme
artacrccrrrcr
permit
peFeent
percent
mnnc'rca�2
n percent, mum �c n n+ 35
Be+aatieer-20
21
38.75
22
42.5
23
46.25
24
50
}-Very Low Income Households. For housing dev developments meeting the criteria of Section 9121(a)(T)
(bb) 2-), the density bonus shall be calculated as follows:
Percentage Very Low Income Units
Percentage Density Bonus
5
20
6
22.5
7
25
8
27.5
9
30
10
32.5
11
35
12
38.75
13
42.5
14
46.25
15
50
Moderate Income Households. For housing deve epmeRt FneetiRgthe cFqterqa eFSeGtiOR 012(,)121
kb4(c) 3-�;e���developments meeting the criteria of Section 9121(a)(4}), the density bonus shall
be calculated as follows:
DocuSign Envelope ID: 239BD86B-8354-4090-8C4C-4B4C6D1C4442
.PGr
Percentage Moderate -Income Units
Percentage Density Bonus
10
5
11
6
12
7
13
8
14
9
15
10
16
11
17
12
18
13
19
14
20
15
21
16
22
17
23
18
24
19
25
20
26
21
27
22
28
23
29
24
30
25
31
26
32
27
33
28
34
29
35
30
36
31
37
32
38
33
39
34
40
35
41
38.75
42
42.5
43
46.25
44
50
(d) Senior Housing or Mobile Home Park. For housing developments meeting the criteria of Section 9121(a)(3),
the density bonus shall be 20 percent of the number of senior housing develepnentunits.
{c4(e) Transitional Foster Youth, Disabled Veterans, and Homeless Persons. For housing developments meeting
the criteria of Section 9121(a)(-3}5), the density bonus shall be 20 percent of the number of the type of units
giving rise to a density bonus thereunder.
�d}(f) �-Student Housing. For housing develep Reptclevelopments meeting the criteria of Section 9121(a)(40 the
density bonus shall be 35 percent of the student housing units.
J&L�-One Hundred Percent Affordable. For housing dev developments meeting the criteria of Section
9121(a)(7), the following shall apply:
DocuSign Envelope ID: 239BD86B-8354-4090-8C4C-4B4C6D1C4442
(1) Except as provided in subsection (2) below, the density bonus shall be 80 percent of the number of units
for lower income households.
(2) If the housing development is located within one-half mile of a major transit stop, no maximum controls
on density shall be imposed.
{e4(h) Land Donation. When an applicant for a tentative subdivision map, parcel map, or other residential
development approval donates land to the City in accordance with Section 9121(b}), the applicant shall be
entitled to a 15 -percent increase above the otherwise maximum allowable residential densitv for the entire
development, as follows:
Percentage Very Low Income Units (Land Donation)
Percentage Density Bonus
10
15
11
16
12
17
13
18
14
19
15
20
16
21
17
22
18
23
19
24
20
25
21
26
22
27
23
28
24
29
25
30
26
31
27
32
28
33
29
34
30
35
9123 INCENTIVES OR CONCESSIONS
(a) Applicability. 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 Feq est a meetiRg 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 W he sel as specified in Section 9131.
(2) (2) The concession(s) or incentive(s) would have a specific adverse impact upon public health and
safety or the .,hysm al eRviFeRmeRt eF 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) Number. The applicant shall be entitled to receive the following number of concessions or incentives:
DocuSign Envelope ID: 239BD86B-8354-4090-8C4C-4B4C6D1C4442
Target Group
Target Units
(Percent)
Maximum Incentives or
Concessions
Very Low Income
5
1
10
2
15
3
Low Income
10
1
X17
2
3&24
3
Moderate Income
(C-Andernin"imfor-sale units
only)
10
1
20
2
30
3
100% of Total Units
restricted to lower income
100 (excluding manager's
4 and up to 3 additional stories,
units
or 33 feet.
(maximum 20% moderate)
and located within % mile of
major transit stop
Student Housing
20
1
(c) Type. 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:
(i) a --Reduced minimum lot size.
(ii) Reduced minimum setbacks.
(iii) e) --Reduced minimum street standards such as reduced minimum street width.
(iv) Increased maximum lot coverage.
(v) e�--lncreased building height.
(vi) #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,
f4fl-- f-iEie�, 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.
DocuSign Envelope ID: 239BD86B-8354-4090-8C4C-4B4C6D1C4442
9124 WAIVERS OR REDUCTIONS OF DEVELOPMENT STANDARDS
(a) Applicability. 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) Review. 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, or
safety,-etk�ck�ysaeI evit, 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-speE+fiean adverse impact on any real
property that is listed in the California Register of Historical Resources.
(3) The waiver or reduction of development standards would be contrary to state or federal law.
9125 OPTIONAL ADDITIONAL ASSISTANCE
(a) Applicability. The City may approve additional assistance to facilitate the inclusion of more Targeted Units
than are required by this Chapter.
b Type. The City Council may approve any of the following in its sole discretion, including, but not limited to:
(a1) A density bonus greater than that required in Section 9121 of this Chapter.
(b2) A proportionately lower density bonus than what is required by this Chapter when the housing
development does not meet the requirements of this Chapter.
(e3) Waived, reduced, or deferred planning, plan check, building permit and/or development impact fees.
(44) Direct financial aid (e.g., housing set aside f, ^�'�Low and Moderate Income Housing Asset 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 STANDARD REQUIREMENTS
9131 STANDARD REQUIREMENTS
(a) Location. 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) Time of Construction. 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) Bedroom Count. 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 directerDirector 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.
{4)—(d) Affordable Housing Restrictions - Rental Units. An applicant shall agree to, and the City shall ensure,
continued affordability of all low- and very low income rental units that qualified the applicant for the award
DocuSign Envelope ID: 239BD86B-8354-4090-8C4C-4B4C6D1C4442
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. Rent; fer
thp 1pwpr nrAmp HPR,; P ty benus uRits ;h;;" hP ';Pt 4 AR ;;ffArd;;hlP rpn* Owner eeewpied units shall hP
(e) Rents Units. Except as otherwise provided in subsection 9131(e)(1), Rents for the lower income density bonus
units shall be set at an affordable rent.
(1) For housing developments meeting the criteria of subsection 9121(a)(7), and except as my otherwise be
required by the Surplus Land Act, rents for all units in the development, including both base density and
density bonus units, shall be as follows:
(i) The rent for at least 20 percent of the units in the development shall be set at an affordable rent.
(ii) The rent for the remaining units in the development shall be set at an amount consistent with the
maximum rent levels for a housine development that receives an allocation of state or federal low-
income housing tax credits from the California Tax Credit Allocation Committee.
(f) Affordable Housing Restrictions — For Sale units. An applicant shall agree to ensure, and the City shall ensure,
that, the initial eEeu^^^* e ^"_a for -sale un4sunit that qualified the applicant for the award of thea density
bonus are peFsons and familiesmeets either of the following conditions:
(1) The unit is initially occupied by a person or family of very low, low or moderate -income, as required, and
that the units is offered at an affordable housing cost.- and is subject to an equity sharing agreement.
(2) The unit is purchased by a qualified nonprofit housing corporation pursuant to a recorded contract that
satisfies all of the requirements specified in paragraph (10) of subdivision (a) of Section 402.1 of the
Revenue and Taxation Code and that includes all of the following:
(i) A repurchase option that requires a subsequent purchaser of the property that desires to resell or
convey the property to offer the qualified nonprofit corporation the right to repurchase the property
prior to selling or conveying that property to any other purchaser.
(ii) An equity sharing agreement.
(iii) Affordability restrictions on the sale and conveyance of the property that ensure that the property
will be preserved for lower income housing for at least 45 years for owner -occupied housing units
and will be sold or resold only to persons or families of very low. low. or moderate income.
(g) Equity Sharing. The City shall enforce an equity -sharing agreement, required pursuant to subsections
9131(f)(1) or 9131(f)(2), 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. T#e
(2) Except as provided in subsection 9131(8)(5), 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.
(23) 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.
DocuSign Envelope ID: 239BD86B-8354-4090-8C4C-4B4C6D1C4442
(-34) For purposes of thisO11"'�crrwA,;*A r" ^nsubsection, the C#y4 ty's proportionate share of appreciation shall be
equal to the ratio of the City's initial subsidy to the fair market value of the home at the time of initial
sale.
{4—(5) If the unit is purchased or developed by a qualified nonprofit housing corporation, the City may
enter into a contract with the qualified nonprofit housing corporation under which the qualified nonprofit
housing corporation would recapture any initial subsidy and its proportionate share of appreciation if the
qualified nonprofit housing corporation is required to use 100 percent of the proceeds to promote
homeownership for lower income households within the jurisdiction of the City
(h) Design. 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.
4—(i) Housing Incentive Agreement. 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.
{#9132 PARKING STANDARDS
(a) Parking. Upon the request of the developer, the vehicular parking ratio, inclusive of disabled aeGess and guest
parking for persons with a disability and guests, of a development meeting the criteria of Section 9121(a), shall
not exceed the following ratios:
Number of Bedrooms Parking Ratio
0-1 1 space
2-3 -21.5 spaces
4 or more 2.5 spaces
'Notwithstanding paragraph (4a) above, if a development includes the maximum ^^pe^^tage ^Fat least 20
percent low-income units pursuant to Section 9121(a)(1) or at least 11 percent very low income units
^••Wed f^• in seetien °"' ,^^'pursuant to 9121 (a)(2), is located within one-half (mile of a major transit
stop, and there is unobstructed access to the major transit stop from the development, then, upon the
request of the developermameg," st, the City shall not impose a vehicular parking ratio, inclusive of parking
for persons with a disability and guests, that exceeds 0.5 spaces per unit. Notwithstanding paragraph (a)
above. if a development includes at least 40 Dercent moderate -income units pursuant to Section 9121(a)(3).
is located within one-halfmile of a major transit stop, and
guest parking.
(1) 0) if the residents of the development
e(YAhave unobstructed access to lev., e families exel sive of , nk(i ,the maior transit
stop from the development then, upon the request of the developer may Feq est, the City shall not
impose a vehicular parking ratio, including handmeapped and ^u inclusive of parking for persons with a
disability and guests, that exceeds t4e0.5 spaces per bedroom. The following table provides the ratios -,4'
the .developmentisi described in this subsection, for a project meeting the eligibility criteria:
Housin
Development
Parking
Criteria
Ratio
Type
Low income
units
0.5
space
1L_L- edlocated
within
Net *A- Exe-ee' 0.5 spaees peF unit
DocuSign Envelope ID: 239BD86B-B354-4090-8C4C-4B4C6D1C4442
(at least 20
mile of a major
percent)
transit stopAv#1-
unobstructed access
to the major transit
Stop
443) Upon request , the
development
developer
Very low
0.5
r;+
nl..t +., Exceed 0.5 spaces per
income units
space
CitizeR HeHSing
(at least 11
Develepm^^+ ,
percent)
.def;RP-d- ;n +; n
9117 Rd has ei+heF
paFatr s;+
9F URObStFUCted
i+h'
h;;If mile
hu t
least eight times pe
day -located within
mile of a major
transit stop
2) unobstructed access
to the major transit
stop
443) Upon request of the
developer
Moderate
0_5Lir^�"gym
Not to ed 0.3 spaees per r;+
income units
space
Housing, as defined
(at least 40
in Section 9112, and
percent)
p@Fa+. S;+
bus route
that e ates at
least eight times peF
dad -located within
mile of a major
transit stop
2) unobstructed access
to the major transit
stop
343Uponeethee
developer
(b) 00 --One Hundred Percent Affordable and Near Transit or Senior Citizen Housing. Notwithstanding paragraph
(a) above, if a development consists solely of rental units with an affordable housing cost to low income
families, exclusive of a manager's unit(s), then, upon the request of the developer, the City shall not impose a
DocuSign Envelope ID: 239BD86B-8354-4090-8C4C-4B4C6D1C4442
vehicular parking standards if the development meets either of the following criteria (1) located within one-
half mile of a major transit stop and there is unobstructed access to the major transit stop from the
development, or (2) is a for -rent Senior Citizen Housing 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.
(c) Special Needs Housing. Notwithstanding paragraph (a) above, if a development is a for -rent Special Needs
Housing Development as defined in Section 9112, then, upon the request of the developer, the City shall not
impose any minimum vehicular parking requirement. A development that is a Special Needs Housing
Development shall have either paratransit service or unobstructed access, within one-half mile, to fixed bus
route service that operates at least eight times per day.
(e) Parking Calculations. 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.
(f) Tandem Parking. For purposes of this section, a development may provide on-site parking through tandem
parking or uncovered parking, but not on -street parking.
(g) Parking Incentives/Concessions. If the development meets the requirements of Section 9121, an applicant
may request parking incentives or concessions beyond those provided in this Section 9122.pursuant to
Section 9123(a). A request pursuant to this si helivisienSection shall not increase the number of incentives or
concessions to which the applicant is entitled pursuant to Section 9123(b).
(w --b General. The City may, in its discretion, reduce or eliminate a parking requirement for developments of
any type in any location.
(P4—i) City Study. The City may impose a higher parking ratio not to exceed the ratio described in Section
9131(h9132(a)(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) Application Requirements. An applicant proposing a housing development pursuant to this Chapter, shall
submit a preliminary application to the Community Development Department 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 directerCommunity Development 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.
{f5) The location of the targeted units within the housing development.
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(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 On the form of a development pFO forma that
development pFe fOFFna shall inelud-e infer.m.atien ideRtifying capital cests, equity investment, debt
nEeme, pFe tax eash flow, after t;o( c -;;,;h flew, @Rd FetuFn A—R iPwP#mPPt ;;Rd thp Ac#i -Al r -R# rpd- wtiRnq
te be explain how granting the request will result in identifiable and actual cost reductions
for the development.
(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(b) Application Review.
(1) Following receipt of the application, the City shall notify the applicant whether the application is
complete in a manner consistent with the timelines specified in specified in Government Code section
65943.
L2) 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.
`d)--Lj 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
processing, but no optional additional assistance shall be deemed approved until embodied in the
housing incentive agreement.
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9142 HOUSING INCENTIVE AGREEMENT
(a) Agreement Requirement. 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) Agreement Review. 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 (30) days of
approval if a map is not processed and shall be binding to all future owners and successors in interest.
(c) Agreement Contents. 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.
(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) A provision, consistent with City Council Policy, establishing a preference for the purchase or rental of
the target units by Tustin residents or individuals employed within the City of Tustin.
(99) 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= as
set forth in Section 9131:
(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 t-ewlow, 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 very low income, low income, and
very-lewmoderate income targeted units for the applicable affordability period.
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(4) The agreement shall provide for the recapture by the City of its proportionate share of appreciation
upon resale of moderate ince ^ the 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.