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HomeMy WebLinkAbout01 ORD 1320 - DENSITY BONUS 11-06-06 AGENDA REPORT Agenda Item 1 Reviewed: City Manager Finance Director N/A MEETING DATE: NOVEMBER 6,2006 TO: WilLIAM A. HUSTON, CITY MANAGER FROM: COMMUNITY DEVELOPMENT DEPARTMENT SUBJECT: ORDINANCE NO. 1320 -INCENTIVES FOR THE DEVELOPMENT OF AFFORDABLE HOUSING SUMMARY: Senate Bill 1818 and 435 were enacted in 2004 and 2005, respectively, providing amendments to the State's Density Bonus law. Proposed Ordinance No. 1320 would update the City's current Incentives for the Development of Affordable Housing Ordinance to comply with the State's latest amendment to Government Code Section 65915. On October 23, 2006, the Planning Commission adopted Resolution No. 4042 recommending that the City Council adopt Ordinance No. 1320. RECOMMENDATION: That the City Council introduce and have first reading of Ordinance No. 1320 and set for second reading at the Council's next scheduled meeting. FISCAL IMPACT: There are no direct fiscal impacts to the City. BACKGROUNDIDISCUSSION: The City adopted the initial Incentives for the Development of Affordable Housing Ordinance, also known as, Density Bonus Ordinance (Ordinance No. 1222) on November 15, 1999. On September 15,2003, the City Council adopted Ordinance No. 1279 amending Ordinance No. 1222 to comply with the State legislature's 2002 amendment by adding a condominium units provision and extending the term of affordability to 45 years for "for sale" products and 55 years for "for rent" products. Senate Bill 1818 and 435 were enacted in 2004 and 2005, respectively, providing further amendments to the State's Density Bonus law. Proposed Ordinance No. 1320 would update the City's current Incentives for the Development of Affordable Housing Ordinance to comply with the State's latest amendment to Government Code Section 65915. On October 23, 2006, the Planning Commission adopted Resolution No. 4042 recommending that the City Council adopt Ordinance No. 1320. Ordinance 1320 November 6, 2006 Page 2 DISCUSSION Under existing law, cities and counties are required to grant a density bonus and at least one other specified incentive or concession, or other housing incentives of equivalent value, to a developer who agrees to construct an affordable housing development of five (5) or more units, unless the local government makes a finding that the bonus and incentives are not needed to achieve affordability. To qualify for the benefits, a proposed housing development must contain at least: . 10 percent of units for very low income households; . 20 percent of units for low income households; . 20 percent of units in condominium developments for moderate income households; or . 50 percent of units in a senior housing development. In addition, cities and counties are required to provide an incentive or concession such as a reduction in development standards, approval of mixed use zoning, etc. to a developer proposing a qualified housing development as described above. Senate Bill 1818 Senate Bill (SB) 1818 enacted in 2004 and effective on January 1, 2005, made significant modifications to the initial density bonus ordinance. The modifications were as follows: . Lowered the' number of required affordable units needed to qualify for density bonus as follows: . From 10 percent to 5 percent of units for very low income households; . From 20 percent to 10 percent of units for low income households; . From 20 percent to 10 percent of units in condominium development for moderate income households; or . Created sliding scales to determine the percentage of density bonus; . Increased the number of incentives required to be given to a developer; . Expanded qualified moderate income housing to include planned unit development and modified City's rights and obligations with respect thereto; . Created a special density bonus provision for donation of land suitable for very low income housing; . Limited parking standards cities may impose on an affordable housing project; Ordinance No. 1320 November 6, 2006 Page 3 of 3 . Expanded the definition of "Housing Development" to include a subdivision, planned unit development, or condominium; . Required incentives and concessions to be quantified; and . Clarified cities' rights to independently grant density bonuses. Senate Bill 435 SB 435 enacted in 2005 and effective January 1, 2006, made further modifications to the State's density bonus law as follows: . Made senior citizen housing developments density bonus applicable to senior mobile home parks; . Expanded the density bonus for moderate income units to all common interest developments, as opposed to just condominiums or planned developments; . Clarified that a project is entitled to only one density bonus when the project meets affordability thresholds for more than one income category; . Clarified the appreciation recapture provisions applicable to the resale of moderate income units; . Replaced the statute's complicated language to describe a sliding scale density bonus with easy-to-read tables. Proposed Ordinance No. 1320 Proposed Ordinance No. 1320 incorporates SB 1818 and SB 435 and would amend Tustin City Code Article 9, Chapter 1 to comply with the California Legislature's amendment to Government Code Section 65915. The proposed amendment is exempt from the provisions of the California Environmental Quality Act (CEQA), as found in California Code of Regulations Sections 15060(c)(2) and 15060(c)(3). Elizabeth A. Binsack Community Development Director Attachments: A. Ordinance No. 1320 B. Senate Bill 1818 C. Senate Bill 435 S:\CddlCCREPORT\Ordinance No. 1320.doc ATTACHMENT A Ordinance No. 1320 PART I 9111 9112 PART 2 9121 9122 9123 9124 9125 PART 3 9131 PART 4 9141 9142 ORDINANCE NO. 1320 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, AMENDING ARTICLE 9, CHAPTER I, GOVERNING INCENTIVES FOR THE DEVELOPMENT OF AFFORDABLE HOUSING. The City Council of the City of Tustin hereby ordains as follows: SECTION 1. PURPOSE. The Purpose of this ordinance is to amend the City's Affordable Housing Development Incentive provisions: (1) to comply with the California Legislature's 2005 Amendment of Government Code Section 65915 governing incentives for lower income housing units; and (2) to comply with other changes in state law applicable to affordable housing. SECTION 2. Chapter 1 of Article 9 of the Tustin Municipal Code. . Title 9, Chapter 1, of the Tustin Municipal Code entitled, Incentives for the Development of Affordable Housing, is hereby amended in its entirety as set forth below: CHAPTER I INCENTIVES FOR THE DEVELOPMENT OF AFFORDABLE HOUSING CHAPTER INDEX GENERAL PURPOSE AND INTENT DEFINITIONS IMPLEMENTATION AND INCENTIVES IMPLEMENTATION DENSITY BONUS INCENTIVES OR CONCESSIONS WAIVER OPTIONAL ADDITIONAL ASSISTANCE DEVELOPMENT REQUIREMENTS STANDARD REQUIREMENTS APPLICATION AND REVIEW APPLICATION REQUIREMENTS AND REVIEW HOUSING INCENTIVE AGREEMENT Page 1 Ordinance No. 1320 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, or senior citizens in accordance with California Law pertaining to density bonuses. The intent of this Chapter is to facilitate the development of affordable housing and to implement the goals, objectives, and policies of the City's Housing Element. The regulations and procedures set forth in this Chapter shall apply throughout the City with the exception of area identified as the "MCAS Tustin Specific Plan." Sections of the California Government Code referenced in this Chapter and application forms for complying with this Chapter, shall be made available to the public. 9112 DEFINITIONS Whenever the following terms are used in this Chapter, they shall have the meaning established by this section: ''Affordable Housing Cosf', means as defined in Health and Safety Code Section 50052.5. The term applies to for-sale units. In the Housing Incentive Agreement, in its sole discretion, the City or Agency, as applicable, shall exercise the options specified in Section 50052.5(b)(3) and/or (4), and if the Department of Housing and Community Development adopts regulations pursuant to Section 50052.5(c), the City or Agency, as applicable, shall consider the regulations for purposes of determining Affordable Housing Cost. ''Affordable Rent" means as defined in Health and Safety Code Section 50053. The term applies to rental units. ''Agency'' means the Tustin Community Redevelopment Agency. ''Applicant'' means a developer or owner who desires to construct five 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. 2 Ordinance No. 1320 "Common Interest Development" means a community apartment project, a condominium project, a planned development, or a stock cooperative as defined in Section 1351 of the Civil Code. "Concession or Incentive" means the concession(s) and incentive(s) as specified in California Government Code Section 65915(1) and Section 9123. "Density Bonus" means a density increase over the otherwise Maximum Allowable Residential Density, (unless the Applicant elects to develop a lower percentage) for a Housing Development meeting the criteria of 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" means site or construction conditions that apply to a residential development pursuant to any ordinance, general plan element, specific plan, or other local condition, law, policy, resolution, or regulation. "Director' means the City's Director of Community Development or designee. "Housing Developmenf' means construction projects consisting of five (5) or more residential units, including single family and multi- family units for sale or for rent. "Housing Development" also includes a subdivision or Common Interest Development, approved by the City and consists of residential units or unimproved residential lots and either a project to substantially rehabilitate and convert an existing commercial building to residential use or the substantial rehabilitation of an existing multifamily dwelling, as defined in subdivision (d) of Section 65863.4 of the Government Code, where the result of the rehabilitation would be a net increase of at least five (5) or more residential units. "Housing Incentive Agreemenf' means a legally binding agreement between an Applicant and the City andlor the Agency to ensure that the requirements of this Chapter are satisfied. The agreement among other things shall establish the number of Target Units, size, location, terms and conditions of affordability, production schedule, and may be part of a larger Disposition and Development or Regulatory Agreement. "Low Income Household" means households whose income does not exceed the lower income limits applicable to Orange County, as published and periodically updated by the State Department of Housing and Community Development pursuant to Section 50079.5 of the State California Health and Safety Code. "Maximum Allowable Residential Density' means the maximum number of residential units permitted by the Land Use Element of the City's General Plan and Zoning Ordinance, with the exception of the MCAS Tustin Specific Plan, excluding the Density Bonus allowed by this Chapter. 3 Ordinance No. 1320 "Non-Restricted Unit' means all units within a Housing Development excluding the Target 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 120 percent of area median income adjusted for family size by the State Department of Housing and Community Development in accordance with adjustment factors adopted and amended from time to time by the United States Department of Housing and Urban Development pursuant to Section 8 of the United States Housing Act of 1937. "Senior Citizen" means, a person 62 years of age or older, or 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 35 dwelling units. 'Target 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(ar~) units in a senior Housing Development. "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 Density Bonus, the amount of which shall be as specified in Section 9122, and a Concession(s) or Incentive(s), as described in Section 9123, when an Applicant seeks and agrees to construct a Housing Development, excluding any units permitted by the 4 Ordinance No. 1320 Density Bonus awarded pursuant to this Chapter, that will contain at least anyone of the following: (1) Ten (10) percent of the total units of the Housing Development as Target Units affordable to Low Income Households; or (2) Five (5) percent of the total units of the Housing Development as Target Units affordable to Very Low Income Households; or (3) Senior Citizen Housing Development or mobile home park that limits residency based on age requirements for housing for older persons pursuant to Section 798.76 or 799.5 of the Civil Code; or (4) Ten (10) percent of the total units in a Common Interest Development for Persons and Families of Moderate Income, provided that all units in the development are offered to the public for purchase. (5) 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), or (4) of this subsection. (b) When an applicant for a tentative subdivision map, parcel map, or other residential development approval donates land to the City as provided for in this subsection, the City shall grant a Density Bonus, the amount of which shall be as specified in Section 9122. This increase shall be in addition to any increase in density mandated by subsection (a), to a maximum combined density of 35 percent if an applicant seeks both the increase required pursuant to this subsection and subsection (a). 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 development 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. 5 Ordinance No. 1320 (3) The transferred land is at least one (1) acre in size or of sufficient size to permit development of at least 40 units, has the appropriate general plan designation, is appropriately zoned for development of affordable housing, and is or will be served by adequate public facilities and infrastructure. The land shall have appropriate zoning and Development Standards to make the development of affordable units feasible. No later than the date of approval of the final subdivision map, parcel map, or of the residential development, the transferred land shall have all of the permits and approvals, other than building permits, necessary for the development of the very low income housing units on the transferred land, except that the local government may subject the proposed development to subsequent design review to the extent authorized by subdivision (i) of Government Code Section 65583.2 if the design is not reviewed by the City prior to the time of transfer. (4) The transferred land and the affordable units shall be subject to a deed restriction ensuring continued affordability of the units consistent with Section 9131(d) and (e) which shall be recorded on the property at the time of dedication. (5) The land is transferred to the City or to a housing developer approved by the City. The City may require the applicant to identify and transfer the land to the developer. (6) The transferred land shall be within the boundary of the proposed development or, if the City agrees, within one-quarter mile of the boundary of the proposed development. (c) When an Applicant agrees to construct a Housing Development that conforms to the requirements of Section 9121 (a) and includes a Child Care Facility that will be located on the premises of, as part of, or adjacent to, the project, the following shall apply: (1) The City shall grant either of the following, unless it finds, based upon substantial evidence, that the community has adequate child care facilities: (i) An additional density bonus that is an amount of square feet of residential space that is equal to or greater than the amount of square feet in the Child Care Facility. (ii) An additional Concession or Incentive that contributes significantly to the economic feasibility of the construction of the Child Care Facility. 6 Ordinance No. 1320 (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 Target 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). 9122 DENSITY BONUS (1) The amount of Density Bonus to which the Applicant is entitled shall vary according to the amount by which the percentage of affordable housing units exceeds the percentage established in Section 9121(a) as follows: Percentage of Target Units Additional Target Additional Target Group (excluding Density Bonus Units Density Bonus Density Bonus units) Each 1 percent 1.5 percent, Low-Income' 10 percent 20 percent maximum 35 increase percent Very Low Income2 Each 1 percent 2.5 percent, 5 percent 20 percent maximum 35 increase percent Moderate Income3 Each 1 percent 1.0 percent, 10 percent 5 percent maximum 35 increase percent Senior Citizen 20 percent N/A N/A Housino' Very Low Income Each 1 percent 1.0 percent, under Land 10 percent 15 percent increase maximum 35 Donation5 percent , For housing development meeting the criteria of Section 9121(a)(1) 2 For housing development meeting the criteria of Section 9121(a)(2) 3 For housing development meeting the criteria of Section 9121 (a)(4) · For housing development meeting the criteria of Section 9121 (a)(3) 5 For housing development meeting the criteria of Section 9121(b) 7 Ordinance No. 1320 9123 INCENTIVES OR CONCESSIONS (a) An Applicant may submit to the City a proposal for the specific Concession(s) or Incentive(s) that the Applicant requests pursuant to this Section, and the Applicant may request a meeting with the City. The City must grant the Concession(s) or Incentive(s) requested by the Applicant unless the City makes a written finding, based upon substantial evidence, of either of the following: (1) The Concession(s) or Incentive(s) is not required in order to provide for Affordable Housing Costs or for Affordable Housing Rent for the Target Units. (2) The Concession(s) or Incentive(s) would have a specific adverse impact, as defined in Government Code section 65589.5, subdivision (d), paragraph (2), upon public health and safety or the physical environment or on any real property that is listed in the California Register of Historical Resources and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact without rendering the development unaffordable to low- and moderate- income households. (b) The Applicant shall be entitled to receive the following number of Concessions or Incentives: Target Group Target Units Maximum Incentives Very Low Income 5 percent 1 10 percent 2 15 percent 3 Low Income 10 percent 1 20 percent 2 30 percent 3 Moderate Income 1 0 percent 1 (Condominium only) 20 percent 2 30 percent 3 (c) Incentives or concessions may include the following: 1. A reduction of site Development Standards or a modification of zoning code requirements or architectural design requirements that exceed the minimum building standards approved by the State 8 Ordinance No. 1320 Building Standards Commission as provided in Part 2.5 (commencing with Section 18901) of Division 13 of the Health and Safety Code, which result in identifiable, financially sufficient, and actual costs reductions, including but not limited to: a) Reduced minimum lot size. b) Reduced minimum setbacks. c) Reduced minimum street standards such as reduced minimum street width. d) Increased maximum lot coverage. e) Increased building height. 2. Approval of mixed use zoning in conjunction with the housing project if commercial, office, industrial, or other land uses will reduce the cost of the Housing Development and if the commercial, office, industrial, or other land uses are compatible with the housing project and the existing or planned development in the area, including the City's General Plan, where the proposed housing project will be located; or 3. Other regulatory incentives or concessions proposed by the Applicant or the City that result in identifiable, financially sufficient, and actual cost reductions. 9124 WAIVERS OR REDUCTIONS (a) An Applicant may submit to the City a proposal for the waiver or reduction of Development Standards and may request a meeting with the City. The Applicant shall show that the waiver or modification is necessary to make the housing units economically feasible. (b) The waiver or reduction shall be granted unless the City Council adopts a written finding, based on substantial evidence, of either the following: 1. The waiver or reduction of Development Standards would have a specific adverse impact, as defined in paragraph (2) of subdivision (d) of Government Code Section 65589.5, upon health, safety, or the physical environment, and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact. 2. The waiver or reduction of Development Standards would have an adverse impact on any real property that is listed in the California Register of Historical Resources. 9 Ordinance No. 1320 9125 OPTIONAL ADDITIONAL ASSISTANCE The City may approve additional assistance to facilitate the inclusion of more Target Units than are required by this Chapter. The City Council may approve any of the following in its sole discretion, including, but not limited to: (a) A density bonus greater than that required in Section 9121 of this Chapter. (b) A proportionately lower density bonus than what is required by this Chapter when the Housing Development does not meet the requirements of this Chapter. (c) Waived, reduced, or deferred planning, plan check, building permit and/or development impact fees. (d) Direct financial aid (e.g., redevelopment housing set-aside funds, Community Development Block Grant funds) in the form of a loan or a grant to subsidize or provide low interest financing for on or off site improvements, contribution to land, or construction costs. PART 3 DEVELOPMENT REQUIREMENTS 9131 STANDARD REQUIREMENTS (a) Target 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) Target Units shall be constructed concurrently with Non-Restricted Units unless both the City and the Applicant agree in the Housing Incentive Agreement described in Section 9142 to an alternative schedule for development. (c) Except for a Senior Citizen Housing Development, the number of bedrooms of the Target 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 Target Units with more bedrooms than the Non- Restricted Units. (d) An Applicant shall agree to, and the City shall ensure, continued affordability of all low- and very low income units that qualified the Applicant for the award of the Density Bonus for at least 30 years or a longer period of time if required by the construction or mortgage financing assistance program, mortgage insurance program, rental subsidy 10 Ordinance No. 1320 program, or in accordance with the Community Redevelopment Law (Health and Safety Code Section 33000 et. seq.). Rents for the Target Units shall be set at an Affordable Rent. Owner-occupied units shall be available at an Affordable Housing Cost. (e) An Applicant shall agree to, and the City shall ensure that, the initial occupant of the moderate-income units that are directly related to the receipt of the Density Bonus in the Common Interest Development are Persons and Families of Moderate Income and that the units are offered at an Affordable Housing Cost. The City shall enforce an equity-sharing agreement, unless it is in conflict with the requirements of another public funding source or law. The following apply to the equity-sharing agreement: (1) Upon resale, the seller of the unit shall retain the value of any improvements, the down payment, and the seller's proportionate share of appreciation. The local government shall recapture any initial subsidy and its proportionate share of appreciation, which shall then be used within three years for any of the purposes described in subdivision (e) of Section 33334.2 of the Health and Safety Code that promote homeownership. (2) For purposes of this subsection, the local government's initial subsidy shall be equal to the fair market value of the home at the time of initial sale minus the initial sale price to the moderate- income household, plus the amount of any down payment assistance or mortgage assistance. If upon resale the market value is lower than the initial market value, then the value at the time of the resale shall be used as the initial market value. (3) For purposes of this subdivision, the City's proportionate share of appreciation shall be equal to the ratio of the initial subsidy to the fair market value of the home at the time of initial sale. (f) The design and appearance of the Target Units shall be consistent with the design of the total Housing Development. Housing Developments shall comply with all Development Standards applicable to housing in the City, except those which may be modified as provided by this Chapter. (g) A Housing Incentive Agreement shall be entered into between the Applicant and City and/or the Agency to memorialize among other things, the Applicant's commitment to provide Target Units in accordance with this Chapter and other applicable provisions of State Law. The agreement shall be made a condition of the development permits (e.g., tract maps, parcel maps, site plans, planned development, conditional use permits, etc.) for all Housing Developments pursuant to this Chapter. 11 Ordinance No. 1320 (h) (1) Upon the request of the developer, the vehicular parking ratio, inclusive of disable access and guest parking, of a development meeting the criteria of subdivision 9121 (a), shall not exceed the following ratios: Number of Bedrooms Parking Ratio 0-1 1 space 2-3 2 spaces 4 or more 2.5 spaces (2) If the total number of parking spaces required for a development is other than a whole number, the number shall be rounded up to the next whole number. For purposes of this section, a development may provide "on-site parking" through tandem parking or uncovered parking, but not through on-street parking. PART 4 APPLICATION AND HOUSING INCENTIVES AGREEMENT 9141 APPLICATION REQUIREMENTS AND REVIEW (a) An Applicant proposing a Housing Development pursuant to this Chapter, may submit a preliminary application prior to the submittal of any formal request for approval of a permit for a Housing Development. Applicants are encouraged to schedule a pre-application conference with the Director to discuss and identify potential application issues. No charge will be required for the pre-application conference. A preliminary application shall include the following information: (1) A request for Density Bonus by specifying the code section of which the Density Bonus shall be awarded. (2) A description of the proposed Housing Development including the total number of units, Target Units by income category, and Density Bonus Units bedroom mix. (3) The zoning and general plan designations and assessors parcel number(s) of the project site. (4) The location of the Target Units within the Housing Development. (5) The number of additional housing units requested as the Density Bonus for the Housing Development. (6) A vicinity map and preliminary site, floor, and elevation plans, drawn to scale, including building footprints, driveway, and parking layout. 12 Ordinance No. 1320 (7) A description of any requested concession(s) or incentive(s), waiver, and/or modified parking standards. 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 subsection 9121(b) can be met. 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 subsection 9121(c) can be met. (8) A description of any Development Standards requested to be waived or reduced and an explanation of why they are needed. In requesting a waiver or reduction of Development Standards, the Applicant shall provide substantial facts in the form of a development pro-forma that the waiver or modification is necessary to make the Target Units and other units in the Housing Development economically feasible. At a minimum, the development pro-forma shall include information identifying capital costs, equity investment, debt service, discount rate, revenues, vacancy allowance, operating expenses, net income or net operating income, pre-tax cash flow, after-tax cash flow, and return on investment. (9) The Applicant shall acknowledge in writing that a Housing Incentive Agreement is required. (b) An application for a Density Bonus and/or Concession or Incentive pursuant to this Chapter shall be processed concurrently with any other permit application(s) required for the Housing Development. At a minimum, the application shall contain all the information described in Section 9141(a) plus all other required information. Final approval or disapproval of an application shall be made by the City Council and (i) in the case of Housing Developments within redevelopment project areas, also by the Agency; (ii) 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 Agency (as applicable) and Applicant have executed a Housing Incentive Agreement. (c) Within sixty (60) days of receipt of the preliminary application, the City shall provide the Applicant with a letter which identifies project issues of concern and the proposed Concession or Incentive that the Director would recommend to the Planning Commission and City Council and the procedures for compliance with this Chapter. 13 Ordinance No. 1320 (d) Where the Applicant proposes that the City provide optional additional assistance as described in Section 9125 herein, the proposal shall be considered by the Planning Commission for recommendation to the City Council, or Agency where Agency funds are requested, for their prelfminary approval unless such Housing Development does not require Planning Commission entitlements in which case, the City Councilor Agency, as applicable, can authorize such assistance. A preliminary approval shall indicate the City Council's approval of the proposal for processing, but no optional additional assistance shall be deemed approved until embodied in the Housing Incentive Agreement. 9142 HOUSING INCENTIVE AGREEMENT (a) Once an application for a Density Bonus and/or Concession or Incentive is approved pursuant to 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 Agency) approval and execution responsibilities for such agreement shall be as identified in the approval of the Housing Development application pursuant to Section 9141(b). Where such identification is not made by the City Council, such agreement shall be subject to approval by the City Council. (b) The final approval of any documents as required by the agreement shall take place prior to or concurrent with final map approval, or, where a map is not being processed, prior to issuance of building permits for any parcels in the Housing Incentive Agreement. The agreement shall be binding to all future owners and successors in interest. (c) The agreement shall include at least the following: (1) The total number of units approved for the Housing Development including the number of Target Units. (2) A description of the household income group to be accommodated by the Housing Development, and the standards for determining the corresponding Affordable Rent or Affordable Housing Cost. (3) The location, unit sizes (square feet), and number of bedrooms of Target Units. (4) Affordability restrictions for low and very low income Target Units for at least 30 years or a longer period of time if required by the construction or mortgage financing assistance program, mortgage insurance program, rental subsidy program, or in accordance with 14 Ordinance No. 1320 the Community Redevelopment Law (Health and Safety Code Section 33000 et. seq.). (5) A schedule for completion and occupancy of the Target Units. (6) A description of the Concessions or Incentive(s), or optional additional assistance being provided by the City or Agency. (7) A description of remedies for breach of the agreement by either party (the City may identity tenants or qualified purchasers as third party beneficiaries under the agreement). (8) Other provisions to ensure implementation and compliance with this Chapter and State Law. (d) In the case of for-sale Housing Developments, the agreement shall provide for the following regarding the initial sale and use of Target Units during the applicable use restriction period and for the respective affordability period: (1) Target Units shall, upon initial sale, be sold to eligible Very Low 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) Target 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 afford ability of the low income and very low income Target Units for the applicable affordability period. (4) The agreement shall provide for the recapture by the City of its proportionate share of appreciation upon resale of moderate income Target 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 Target Units during the affordability period: 15 Ordinance No. 1320 (1) The rules and procedures for qualifying tenants, establishing Affordable Rent, filling vacancies, and maintaining Target Units for qualified tenants; (2) Provisions requiring the owner to verify tenant incomes and maintain books and records to demonstrate compliance with this Chapter and State Law. SECTION 3. If any section, subsection, sentence, clause, phrase or portion of this ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council of the City of Tustin hereby declares that it would have adopted this ordinance and each section, subsection, sentence, clause, phrase or portion thereof irrespective of the fact that anyone or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional. PASSED AND ADOPTED, at a regular meeting of the City Council for the City of Tustin on this day of , 2006. DOUG DA VERT Mayor PAMELA STOKER City Clerk 16 Ordinance No. 1320 ORDINANCE CERTIFICATION STATE OF CALIFORNIA) COUNTY OF ORANGE ) ss. CITY OF TUSTIN ) ORDINANCE NO. PAMELA STOKER, City Clerk and ex-officio Clerk of the City Council of the City of Tustin, California, does hereby certify that the whole number of the members of the City Council of the City of Tustin is five; that the above and foregoing Ordinance No. was duly and regularly introduced and read at the regular meeting of the City Council held on the _ day of , 200_, and was given its second reading, passed and adopted at a regular meeting of the City Council held on the day of , 200_, by the following vote: COUNCILPERSONS AYES: COUNCILPERSONS NOES: COUNCILPERSONS ABSTAINED: COUNCILPERSONS ABSENT: PAMELA STOKER, City Clerk Published: 17 - ATTACHMENT B Senate Bill 1818 Senate Bill No. 1818 CHAPTER 928 An act to amend Section 65915 of the Government Code, relating to housing. [Approved by Governor September 29, 2004. Filed with Secretary of State September 30, 2004.] LEGlSLlJIVE COUNSEL'S DIGEST SB 1818, Hollingsworth. Density bonuses. The Planning and Zoning Law requires, when a developer of housing proposeS a housing development within the jurisdiction of the local government, that the city, county, or city and county provide the developer with a density bonus or other incentives or concessions for the production of lower income housing units within the development if the developer meets certain requirements, including a requirement that the applicant agree or propose to construct a specified percentage of the total units for specified income households or qualifying residents. Existing law also requires an additional density bonus or additional concession or incentive to be granted to a developer of housing that meets those requirements and includes a child care facility, as defmed, subject to specified conditions. Existing law prohibits the legislative body from establishing fees to support the work of the planning agency that exceed the reasonable cost of providing the service for which the fee is charged. This bill would revise the above-described provision to, among other things, require, when a developer seeks a density bonus for a housing development within, or for the donation of land within, the jurisdiction of the local government, that the local government provide a density bonus or other incentives or concessions for the production of housing units and child care facilities, as specified. By increasing the duties of local officials, this bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement This bill would provide that no reimbursement is required by this act for a specified reason. 90 I Ch. 928 -2- The people of the State of California do enact as follows: SECTION 1. Section 65915 of the Government Code is amended to read: 65915. (a) When an applicant seeks a density bonus for a housing development within, or for the donation of land for housing within, the jurisdiction of a city, county, or city and county, that local government shall provide the applicant incentives or concessions for the production of housing units and child care facilities as prescribed in this section. All cities, counties, or cities and counties shall adopt an ordinance that specifies how compliance with this section will be implemented. (b) A city, county, or city and county shall grant a density bonus and incentives or concessions described in subdivision (d) when the applicant for the housing development seeks and agrees to construct at least anyone of the following: (I) Ten percent of the total units of a housing development for lower income households, as defined in Section 50079.5 of the Health and Safety Code. (2) Five percent of the total units of a housing development for very low income households, as defmed in Section 50105 of the Health and Safety Code. (3) A senior citizen housing development as defined in Sections 51.3 and 51.12 of the Civil Code. (4) Ten percent of the total dwelling units in a condominium project as dermed in subdivision (t) of, or in a planned development as defined in subdivision (k) of, Section 1351 of the Civil Code, for persons and families of moderate income, as defmed in Section 50093 of the Health and Safety Code. (c) (1) An applicant shall agree to, and the city, county, or city and county shall ensure, continued atIordability of all lower income density bonus units for 30 years or a longer period of time if reqnired by the construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy program. Those units targeted for lower income households, as defined in Section 50079.5 of the Health and Safety Code, shall be atIordable at a rent that does not exceed 30 percent of 60 percent of area median income. Those units targeted for very low income households, as defined in Section 50105 of the Health and Safety Code, shall be atIordable at a rent that does not exceed 30 percent of 50 percent of area median income. (2) An applicant shall agree to; and the city, county, or city and county shall ensure that, the initial occupant of the moderate-income units that are directly related to the receipt of the density bonus in the condominium project as defined in subdivision (t) of, or in the planned 90 I -3- Ch. 928 unit development as defmed in subdivision (k) of, Section 1351 of the Civil Code, are persons and families of moderate income, as defined in Section 50093 of the Health and Safety Code. Upon resale, the seller of the unit shall retain the value of any improvements, the downpayment, and the seller's proportionate share of appreciation. The local government shall recapture its proportionate share of appreciation, which shall then be used within three years for any of the purposes described in subdivision (e) of Section 33334.2 of the Health and Safety Code that promote homeownership. For purposes of this subdivision, the local government's proportionate share of appreciation shall be equal to the percentage by which the initial sale price to the moderate-income household was less than the fair market value of the home at the time of initial sale. (d) (1) An applicant may submit to a city, county, or city and county a proposal for the specific incentives or concessions that the applicant requests pursuant to this section, aod may request a meeting with the city, county, or city and county. The city, county, or city and county sha11 grant the concession or incentive requested by the applicant unless the city, county, or city aod county makes a written finding, based upon substantial evidence, of either of the following: (A) The concession or incentive is not required in order to provide for affordable housing costs, as defined in Section 50052.5 of the Health aod Safety Code, or for rents for the targeted units to be set as specified in subdivision (c). (B) The concession or incentive would have a specific adverse impact, as defined in paragraph (2) of subdivision (d) of Section 65589.5, upon public health and safety or the physical environment or on any real property that is listed in the California Register of Historical Resources and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact without rendering the development unaffordable to low- and moderate-income households. (2) The applicant shall receive the following number of incentives or concessions: (A) One incentive or concession for projects that include at least 10 percent of the total units for lower income households, at least 5 percent for very low income households, or at least 10 percent for persons and families of moderate income in a condominium or planned development (8) Two incentives or concessions for projects that include at least 20 percent of the total units for lower income households, at least 10 percent for very low income households, or at least 20 percent for persons and families of moderate income in a condominium or planned development. 90 I Ch. 928 -4- (C) Three incentives or concessions for projects that include at least 30 percent of the total.units for lower income households, at least 15 percent for very low income households, or at least 30 percent for persons and families of moderate income in a condominium or planned development. (3) The applicant may initiate judicial proceedings if the city, county, or city and county refuses to grant a requested density bonus, incentive, or concession. If a court fmds that the refusal to grant a requested density bonus, incentive, or concession is in violation of this section, the court shall award the plaintiff reasonable attorney's fees and costs of suit. Nothing in this subdivision shall be interpreted to require a local government to grant an incentive or concession that has a specific, adverse impact, as defined in paragraph (2) of subdivision (d) of Section 65589.5, upon health, safety, or the physical envimnment, and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact. Nothing in this subdivision shall be interpreted to require a local government to grant an incentive or concession that would have an adverse impact on any n:al property that is listed in the Califomia Register of Historical Resources. The city, county, or city and county shall establish procedures for carrying out this section, that shall include legislative body approval of the means of compliance with this section. The city, county, or city and county shall also establish procedures for waiving or moditYing development and zoning standards that would otherwise inhibit the utilization of the density bonus on specific sites. These procedures shall include, but not be limited to, such items as minimum lot size, side yard setbacks, and pIacement of public works improvements. (e) In no case may a city, county, or city and county apply any development standard that will have the effect of precluding the - construction of a development meeting the criteria of subdivision (b) at the densities or with the concessions or incentives permitted by this section. An applicant may submit to a city, county, or city and county a proposal for the waiver or reduction of development standards and may request a meeting with the city, county, or city and county. If a court finds that the refusal to grant a waiver or reduction of development standards is in violation of this section, the court shall award the plaintiff reasonable attorney's fees and costs of suit. Nothing in this subdivision shall be interpreted to require a local government to waive or reduce development standards if the waiver or reduction would have a specific, adverse impact, as defined in paragraph (2) of subdivision (d) of Section 65589.5, upon health, safety, or the physical environment, and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact. Nothing in this subdivision shall be interpreted to 90 I -5- Ch. 928 require a local govenunent to waive or reduce development standards that would have an adverse impact on any real property that is listed in the California Register of Historical Resources. (f) The applicant shall show that the waiver or modification is necessary to make the housing units economically feasible. (g) (I) For the purposes of this chapter, except as provided in paragraph (2), "density bonus" means a density increase of at least 20 percent, unless a lesser percentage is elected by the applicant, over the otherwise maxiinum allowable residential density under the applicable zoning ordinance and land use element of the general plan as of the date of application by the applicant to the city, county, or city and county. The amount of density bonus to which the applicant is entitled shall vary according to the amount by which the percentage of affordable housing units exceeds the percentage established in subdivision (b). For each I percent increase above 10 percent in the percentage of units affordable to lower income households, the density bonus shall be increased by I.S percent up to a maximum of 3S percent For each I percent increase above S percent in the percentage of units affordable to very low income households, the density bonus shall be increased by 2.5 percent up to a maximum of35 percent All density calculations resulting in fractional units shall be rounded up to the next whole number. The granting of a density bonus shall not be interpreted, in and of itselt; to require a general plan amendment, local coastal plan amendment, zoning change, or other discretionary approvaL The density bonus shall not be included when determining the number of housing units that is equal to 5 or 10 percent of the total. The density bonus shall apply to housing developments consisting of five or more dwelling units. (2) For the purposes of this chapter, if a development does not meet the requirements of paragraph (I), (2), or (3) of subdivision (b), but the applicant agrees or proposes to construct a condominium project as dermed in subdivision (f) ot; or a planned development as defined in subdivision (k) of, Section 1351 of the Civil Code, in which at least 10 percent of the total dwelling units are reserved for persons and families of moderate income, as defined in Section 50093 of the Health and Safety Code, a "density bonus" ofat least 5 percent shall be granted, unless a lesser percentage is elected by the applicant, over the otherwise maximum allowable residential density under the applicable zoning ordinance and land use element of the general plan as of the date of application by the applicant to the city, county, or city and county. For each I percent increase above 10 percent of the percentage of units affordable to moderate-income households, the density bonus shall be increased by 1 percent up to a maximum of 35 percent. All density calculations resulting in fractional units shall be rounded up to the next 90 I Ch. 928 -6- - whole number. The granting of a density bonus shall not be interpreted, in and of itself, to require a general plan amendment, local coastal plan amendment, zoning change, or other discretionary approval. The density bonus shall not be included when determining the number of housing units that is equal to 10 percent of the total The density bonus shall apply to housing developments consisting of five or more dwelling units. (h) When an applicant for a tentative subdivision map, parcel map, or other residential development approval donates land to a city, county, or city and county as provided for in this subdivision, the applicant shall be entitled to a IS percent increase above the otherwise maximum allowable residential density under the applicable zoning ordinance and land use element of the general plan for the entire development For each I percent increase above the minimum 10 percent land donation described in paragraph (2) of this subdivision, the density bonus shall be increased by I percent, up to a maximum of 35 percent This increase shall be in addition to any increase in density mandated by subdivision (b), up to a maximum combined mandated density increase of35 percent if an applicant seeks both the increase required pursuant to this subdivision and subdivision (b). All density calculations resulting in fractional units shall be rounded up to the next whole number. Nothing in this subdivision shall be construed to enlarge or dimini.h the authority of a city, county, or city and county 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 subdivision if all of the following conditions are met: (I) The applicant donates and transfers the land no later than the date of approval of the fmal 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 leas than I o percent of the number of residential units of the proposed development (3) The transferred land is at least one acre in size or of sufficient size to permit development of at least 40 units, has the appropriate general plan designation, is appropriately zoned for development as affordable housing, and is or will be served by adequate public facilities and infrastructure. The land shall have approprialj: zoning and development standards to maIce the development of the affordable units feasible. No later than the date of approval of the final subdivision map, parcel map, or of the residential development, the transferred land shall have all of the permits and approvals, other than building permits, necessary for the development of the very low income housing units on the transferred land, except that the local government may subject the proposed 90 I -7- Ch. 928 development to subsequent design review to the extent authorized by subdivision (i) of Section 65583.2 if the design is not reviewed by the local government prior to the time of transfer. (4) The transferred larid and the affordable units shall be subject to a deed restriction ensuring continued affordability of the units consistent with paragraphs (I) and (2) of subdivision (c), which shall be recorded on the property at the time of dedication. (5) The land is transferred to the local agency or to a housing developer approved by the local agency. The local agency may require the applicant to identify and transfer the land to the developer. (6) The transferred land shall be within the boundary of the proposed development or, if the local agency agrees, within one-quarter mile of the boundary of the proposed development. (i) (I) When an applicant proposes to construct a housing development that conforms to the requirements of subdivision (b) and includes a child care facility that will be located on the premises of, as part of, or adjacent to, the project, the city, county, or city and county shall grant either of the following: (A) 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. (B) An additional concession or incentive that contributes significantly to the economic feasibility of the construction of the child care facility. (2) The city, county, or city and county shall require, as a condition of approving the housing development, that the following occur: (A) 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 density bonus units are required to remain affordable pursuant to subdivision (c). (B) Of the children who attend the child care facility, the children of very low income households, lower 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, lower income households, or families of moderate income pursuant to subdivision (b). (3) Notwithstanding any requirement of this subdivision, a city, county, or a city and county shall not be required to provide a density bonus or concession for a child care facility if it finds, based upon substantial evidence, that the community has adequate child care facilities. (4) "Child care facility," as used in this section, means a child day care facility other than a family day care home, including, but not limited 90 I Ch. 928 -8- to, infant centers, preschools, extended day care facilities, and schoolage child care centers. (j) "Housing development," as used in this section, means one or more groups of projects for residential units constructed in the planned development of a city, county, or city and county. For the purposes of this section, "housing development" also includes a subdivision or a planned unit development or condominium pJ;Oject, as defined in Section 1351 of the Civil Code, approved by a city, county, or city and county 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, 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 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. (k) The granting of a concession or incentive shall not be interpreted, in and of itself, to require a general plan amendment, local coastal plan amendment, zoning .change, or other discretionary approval. This provision is declaratory of existing law. (I) For the purposes of this chapter, concession or incentive means any of the following: (I) A reduction in site development standarda 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, __ including, but not limited to, a reduction in sethack and square footage requirements and in the ratio of vehicular parking spaces that would otherwise be required that results in identifiable, financially sufficient, and actual cost reductions. (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 where the proposed housing project will be located. (3) Other regulatory incentives or concessions proposed by the developer or the city, county, or city and county that result in identifiable, financially sufficient, and actual cost reductions. 90 I -9- Ch. 928 This subdivision does not limit or require the provision of direct financial incentives for the housing development, including the provision of publicly owned land, by the city, county, or city and county, or the waiver of fees or dedication requirements. (m) Nothing in this section shall be construed to supersede or in any way alter or lessen the effect or application of the California Coastal Act (Division 20 (commencing with Section 3??oo) of the Public Resources Code). (n) Nothing in this section shall be construed to prohibit a city, county, or city and county from granting a density bonus greater than what is described in this section for a development that meets the requirements of this section or from granting a proportionately lower density bonus than what is required by this section for developments that do not meet the requirements of this section. (0) For purposes of this section, the following definitions shall apply: (1) "Development standard" includes site or construction conditions that apply to a residential development pursuant to any ordinance, general plan element, specific plan, charter amendment, or other local condition, law, policy, resolution, or regulation. (2) "Maximum allowable residential density" means the density allowed under the zoning ordinance, or if a range of density is permitted, means the maximum allowable density for the specific zoning range applicable to the project (P) (I) Upon the request of the developer, no city, county, or city and county shall require a vehicular parking ratio, inclusive of handicapped and guest parking, of a development meeting the criteria of subdivision (b), that exceeds the following ratios: (A) Zero to one bedrooms: one onsite parking space. (B) Two to three bedrooms: two onsite parking spaces. (C) Four and more bedrooms: two and one-half parking spaces. (2) If the total number of parking spaces required for a development is other than a whole number, the number shall be rounded up to the next whole number. For purposes of this subdivision, a development may provide "onsite parking" through tandem parking or uncovered parking, but not through onstreet parking. (3) This subdivision shall apply to a development that meets the requirements of subdivision (b) but only at the request of the applicant An applicant may request additional parking incentives or concessions beyond those provided in this section, subject to subdivision (d). SEC. 2. No reimbursement is required by this aet pursuant to Section 6 of Article XIII B of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service 90 I Ch. 928 -10- mandated by this act, within the meaning of Section 17556 of the Government Code. o 90 I ATTACHMENT C Senate Bill 435 Senate Bill No. 435 CHAPTER 496 An act to amend Section 65915 of the Government Code, relating to housing. [Approved by Governor October 4. 200S. Filed with Secretary of 5_ OclOber4. 200S.] LEGISLATIVE COUNSEL'S DIGEST SB 435, Hollingsworth. Housing: density honuses. The Planning and Zoning Law requires, when a developer of housing proposes a housing development within the jurisdiction of the local government, that the city, county, or city and county provide the developer with a density honus and other incentives or concessions for the production of lower income housing units or the donation of land within the development if the developer meets certain requirements, including a requirement that the developer agrees to construct a specified percentage of the total units for specified income households or qualifying residents. This bill would include within those eligibility requirements the construction of a mobilehome park. that limits residency based on age requirements for housing for older persons and the construction, for persons and families of moderate income, of a community apartment project and a stock cooperative. The local administrative requirements imposed by the bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement This bill would provide that no reimbursement is required by this act for a specified reason. The people of the State of California do enact as follows: SECTION 1. It is the intent of the Legislature that local governments encourage, to the maximum extent practicable, the location of housing developed pursuant to Section 65915 of the Government Code in urban areas with adequate infrastructure to serve the housing. SEC. 2. Section 65915 of the Government Code is amended to read: 65915. <a> When an applicant seeks a density bonus for a housing development within, or for the donation of land for housing within, the jurisdiction of a city, county, or city and county, that local government shall provide the applicant incentives or concessions for the production of housing units and child care facilities as prescribed in this section. All 93 Ch.496 -2- cities, counties, or cities and counties shall adopt an ordinance that specifies how compliance with this section will be implemented. (b) (I) A city, county, or city and county shall grant one density bonus, the amount of which shall be as specified in subdivision (g), and incentives or concessions, as described in subdivision (d), when an applicant for a housing development seeks and agrees to construct a housing development, excluding any units permitted by the density bonus awarded pursuant to this section, that will contain at least anyone of the following: (A) Ten percent of the total units of a housing development for lower income households, as defined in Section 50079.5 of the Health and Safety Code. (B) Five percent of the total units of a housing development for very low income households, as dermed in Section 50105 of the Health and Safety Code. (C) A senior citizen housing development as dermed in Sections 51.3 and 51.12 of the Civil Code, or mobilehome 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. (D) Ten percent of the total dwelling units in a common interest development as defined in Section 1351 of the Civil Code for persons and families of moderate income, as defined in Section 50093 of the Health and Safety Code, provided that all units in the development are offered to the public for purchase. (2) For purposes of calculating the amount of the density bonus pursuant to subdivision (I), the applicant who requests a density bonus pursuant to this subdivision shall elect whether the bonus shall be awarded on the basis of subparagraph (A), (B), (C), or (D) of paragraph (I). (c) (I) An applicant shall agree to, and the city, county, or city and county shall ensure, continued affordability of all low-and very low income units that qualified the applicant for the award of the density bonus for 30 years or a longer period of time if required by the construction <lr mortgage financing assistance program, mortgage insurance program, or rental subsidy program. Rents for the lower income density bonus units shall be set at an affordable rent as defined in Section 50053 of the Health and Safety Code. Owner-occupied units shall be available at an affordable housing cost as defined in Section 50052.5 of the Health and Safety Code. (2) An applicant shall agree to, and the city, county, or city and county shall ensure that, the initial occupant of the moderate-income units that are directly related to the receipt of the density bonus in the common interest development, as defined in Section 1351 of the Civil Code, are persons and families of moderate income, as dermed in Section 50093 of the Health and Safety Code, and that the units are offered at an affordable housing cost, as that cost is defined in Section 50052.5 of the Health and Safety Code. The local government shall enforce an equity-sharing agreement, unless it is in conflict with the requirements of another public funding source or law. The following apply to the equity-sharing agreement: 93 -3- Ch.496 - (A) Upon resale, the seller of the unit shall retain the value of any improvements, the downpayment, and the seller's proportionate share of appreciation. The local government shall recapture any initial subsidy and its proportionate share of appreciation, which shall then be used within three years for any of the purposes described in subdivision (e) of Section 33334.2 of the Health and Safety Code that promote homeownership. (B) For purposes of this subdivision, the local government'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 downpayment 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. (C) For purposes of this subdivision, the local government's proportionate share' of appreciation shall be equal to the ratio of the initial subsidy to the fair market value of the home at the time of initial sale. (d) (I) An applicant for a density bonus pursuant to subdivision (h) may submit to a city, county, or city and county a propoaaI for the specific incentives or concessions that the applicant requests pursuant to this section, and may request a meeting with the city, county, or city and county. The city, county, or city and county shall grant the concession or incentive requested by the applicant unless the city, county, or city and county makes a written finding, based upon substantial evidence, of either of the following: (A) The concession or incentive is not required in order to provide for affordable housing costs, as dermed in Section 50052.5 of the Health and Safety Code, or for rents for the targeted units to be set as specified in subdivision (c). (B) The concession or incentive would have a specific adverse impact, as defined in paragraph (2) of subdivision (d) of Section 65589.5, upon public health and safety or the physical environment or on any real property that is listed in the California Register of Historical Resources and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact without rendering the development unaffordable to low- and moderate-income households. (2) The applicant shall receive the following number of incentives or concessions: (A) One incentive or concession for projects that include at least 10 percent of the total units for lower income households, at least 5 percent for very low income households, or at least 10 percent for persons and families of moderate income in a cornmon interest development (B) Two incentives or concessions for projects that include at least 20 percent of the total units for lower income households, at least 10 percent for very low income households, or at least 20 percent for persons and families of moderate income in a cornmon interest development (C) Three incentives or concessions for projects that include at least 30 percent of the total units for lower income households, at least 15 percent 93 Ch.496 -4- for very low income households, or at least 30 percent for persons and families of moderate income in a common interest development. (3) The applicant may initiate judicial proceedings if the city, county, or city and county refuses to grant a requested density bonus, incentive, or concession. If a court frods that the refusal to grant a requested density bonus, incentive, or concession is in violation of this section, the court shall award the plaintiff reasonable attorney's fees and costs of suit. Nothing in this subdivision shall be interpreted to require a local government to grant an incentive or concession that has a specific. adverse impact, as defined in paragraph (2) of subdivision (d) of Section 65589.5, upon health, safety, or the physical environment, and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact. Nothing in this subdivision shall be interpreted to require a local government to grant an incentive or concession that would have an adverse impact on any real property that is listed in the California Register of Historical Resources. The city, county, or city and county shall establish procedures for carrying out this section, that shall include legislative body approval of the means of comp1iance with this section. The city, county, or city and county shall also establish procedures for waiving or modifying development and zoning standards that would otherwise inhibit the utilization of the density bonus on specific sites. These procedures shall include, but not be limited to, such items as minimum lot size, side yard setbacks, and placement of public works improvements. ( e) In no case may a city, county, or city and county apply any development standard that will have the effect of precluding the construction of a development meeting the criteria of subdivision (b) at the densities or with the concessions or incentives permitted by this section. An applicant may submit to a city, county, or city and county a proposal for the waiver or reduction of development standards and may request a meeting with the city, county, or city and county. If a court finds that the refusal to grant a waiver or reduction of development standards is in violation of this section, the court shall award the plaintiff reasonable attorney's fees and costs of suit Nothing in this subdivision shall be interpreted to require a local government to waive or reduce development standards if the waiver or reduction would have a specific, adverse impact, as defined in paragraph (2) of subdivision (d) of Section 65589.5, upon health, safety, or the physical environment, and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact, Nothing in this subdivision shall be interpreted to require a local government to waive or reduce development standards that would have an adverse impact on any real property that is listed in the California Register of Historical Resources. (t) The applicant shall show that the waiver or modification is necessary to make the housing units economically feasible. (g) For the purposes of this chapter. "density bonus" means a density increase over the otherwise maximum allowable residential density under the applicable zoning ordinance and land use element of the general plan 93 -5- Ch.496 as of the date of application by the applicant to the city, county, or city and county. The applicant may elect to accept a lesser percentage of density bonus. The amount of density bonus to which the applicant is entitled shall vary according to the amount by which the percentage of affordable housing units exceeds the percentage established in subdivision (b). (I) For housing developments meeting the criteria of subparagraph (A) of paragraph (I) of subdivision (b), the density bonus shall be calculated as follows: Percentage Low-[ncome Units 10 11 12 13 14 15 17 18 19 20 Percentage Density Bonus 20 21.5 23 24.5 26 27.5 30.5 32 33.5 35 (2) For housing developments meeting the criteria of subparagraph (B) of paragraph (I) of subdivision (b), the density bonus shall be calculated as follows: - Percentage Very Low Income Units 5 6 7 8 9 10 11 Percentage Density Bonus 20 22.5 25 27.5 30 32.5 35 (3) For housing developments meeting the criteria of subparagraph (C) of paragraph (I) of subdivision (b), the density bonus shall be 20 percent (4) For housing developments meeting the criteria of subparagraph (D) of paragraph (I) of subdivision (b), the density bonus shall be calculated as follows: Percentage Moderate-Income Units 10 11 12 13 [4 15 Percentage Density Bonus 5 6 7 8 9 10 93 Cb.496 Percentage ModeIllte-Income Units 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 -6- Percentage Density Bonus 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 (5) All density calculations resulting in fractional units shall be rounded up to the next whole number. The granting of a density bonus shall not be interpreted, in and of itself, to require a general plan amendment, local coastal plan amendment, zoning change, or other discretionary approval. As used in subdivision (b), "total units" or "total dwelling units" does not include units permitted by a density bonus awarded pursuant to this section or any local law granting a greater density bonus. The density bonus provided by this section shall apply to housing developments consisting of five or more dwelling units. (h) (I) Wben an applicant for a tentative subdivision map, parcel map, or other residential development appmval donatea land to a city, county, or city and county as provided for in this subdivision, the applicant shall be entitled to a IS-percent increase above the otherwise maximum allowable residential density under the applicable zoning ordinance and land use element of the general plan for the entire development, as follows: Percentage Very Low Income 10 11 12 Percentage Density Bonus 15 16 17 93 Percentage Very Low Income \3 14 IS 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 -7- Ch.496 Percentage Density Bonus 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 (2) This increase shall be in addition to any increase in density mandated by subdivision (b), up to a maximum combined mandated density increase of 35 percent if an applicant seeks both the increase required pursuant to this subdivision and subdivision (b). All density calculations resulting in ftactionaJ units shall be rounded up to the next whole number. Nothing in this subdivision shall be construed to enlarge or diminish the authority of a city, county, or city and county 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 subdivision if all of the following conditions are met: _ (A) The applicant donates and transfers the land no later than the date of approval of the fina1 subdivision map, parcel map, or residential development application. (B) 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 10 percent of the number of residential units of the proposed development. (C) The transferted land is at least one acre in size or of sufficient size to permit development of at least 40 units, has the appropriate general plan designation, is appropriately zoned for development as affordable housing, and is or will be served by adequate public facilities and infrastructure. The land shall have appropriate zoning and development standards to make the development of the affordable units feasible. No later than the date of approval of the fmal subdivision map, parcel ID!'P, or of the residential development, the transferred land shall have all of the permits and approvals, other than building permits, necessary for the development of the very low income housing units on the transferred land, except that 93 Cb.496 -8- the local government may subject the proposed development to subsequent design review to the extent authorized by subdivision (i) of Section 65583.2 if the design is not reviewed by the local government prior to the time of transfer. (0) The transferred land and the affordable units shall be subject to a deed restriction ensuring continued affordability of the units consistent with paragraphs (I) and (2) of subdivision (c), which shall be recorded on the property at the time of dedication. (E) The land is transferred to the local agency or to a housing developer approved by the local agency. The local agency may require the applicant to identifY and transfer the land to the developer. (F) The transferred land shall be within the boundary of the proposed development or, if the local agency agrees, within one-quarter mile of the boundary of the proposed development (i) (I) When an applicant proposes to construct a housing development that conforms to the requirements of subdivision (b) and includes a child care facility that will be located on the premises of, as.part of, or adjacent to, the project, the city, county, or city and county shall grant either of the following: (A) 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. (B) An additional concession or incentive that contributes significantly to the economic feasibility of the construction of the child care facility. (2) The city, county, or city and county shall require, as a condition of approving the housing development, that the following occur: (A) The child care facility shall remain in operation for a period of time that is as long as or longer than the period oftime during which the density bonus units are required to remain affordable pursuant to subdivision (c). (B) Of the children who attend the child care facility, the children of very low income households, lower 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, lower income households, or families of moderate income pursuant to subdivision (b). (3) Notwithstanding any requirement of this subdivision, a city, county, or a city and county shall not be required to provide a density bonus or concession for a child care facility if it fmds, based upon substantial evidence, that the community has adequate child care facilities. (4) "Child care facility," as used in this section, 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 schoolage child care centers. 0) "Housing development," as used in this section, means one or more groups of projects for residential units constructed in the planned development ofa city, county, or city and county. For the purposes of this section, "housing development" also includes a subdivision or common 93 -9- Cb. 496 interest development, as defined in Section 1351 of the Civil Code, approved by a city, county, or city and county and consists of residential units or unimproved residential lots and either a project to substantially rebabilitate 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, 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 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. (k) The granting of a concession or incentive shall not be interpreted, in and of itself, to require a general plan amendment, local coastal plan amendment, zoning change, or other discretionary approval. This provision is declaratory of existing law. (l) For the purposes of this chapter, concession or incentive means any of the following: (I) A reduction in 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, including, but not limited to, a reduction in setback and square footage requirements and in the mtio of vehicular parking spaces that would otherwise be required that results in identifiable, financially sufficient, and actual cost reductions. (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, indusl1ia1, or other land uses are compatible with the housing project and the existing or planned development in the area where the proposed housing project will be located. (3) Other regulatory incentives or concessions proposed by the developer or the city, county, or city and county that result in identifiable, financially sufficient, and actual cost reductions. This subdivision does not limit or require the provision of direct financial incentives for the housing development, including the provision of publicly owned land, by the city, county, or city and county, or the waiver of fees or dedication requirements. (m) Nothing in this section shall be construed to supersede or in any way alter or lessen the effect or application of the California Coastal Act (Division 20 (commencing with Section 3??oo) of the Public Resources Code. (n) Nothing in this section shall be construed to prohibit a city, county, or city and county from granting a density bonus greater than what is described in this section for a development that meets the requirements of this section or from granting a proportionately lower density bonus than 93 Cb. 496 -10- what is required by this section for developments that do not meet the requirements of this section. (0) For purposes of this section, the following definitions sha1l apply: (1) "Development standard" includes site or construction conditions that apply to a residential development pursuant to any ordinance, general plan element, specific plan, charter amendment, or other local condition, law, policy, resolution, or regulation. (2) "Maximum allowable residential density" means the density allowed under the zoning ordinance, or if a range of density is permitted, means the maximum allowable density for the specific zoning range applicable to the project. (p) (I) Upon the request of the developer, no city, county, or city and county shall require a vehicular parking ratio, inclusive of handicapped and guest parking, of a development meeting the criteria of subdivision (h), that exceeds the following ratios: (A) Zero to one bedrooms: one onsite parking space. (lJ) Two to three bedrooma: two onsite parking spaces. (C) Four and more bedrooma: two and one-half parking spaces. (2) If the total number of parking spaces required for a development is other than a whole number, the number sha1l be rounded up to the next whole number. For purposes of this subdivision, a development may provide "onsite parking" through tandem parking or uncovered parking, but not through onstreel parking. (3) This subdivision shall apply to a development that meets the requirements of subdivision (h) but only at the request of the applicant. An applicant may request additional parking incentives or concessions beyond those provided in this section, subject to subdivision (d). SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XlII B of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code. o 93