HomeMy WebLinkAboutORD 1528 (2022)DocuSign Envelope ID: 96C623C1-6313-4A8F-8F52-412E47547FAD
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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 4th day of October, 2022.
Ff,"
DocuSigned by:
' a-s'J,a
ERVeA,Y60Y*SU, DA,
City Clerk
FDocuSigned by:
r"a
AU NDFPJWA9ARD,
Mayor
Ordinance No. 1528
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STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF TUSTIN )
CERTIFICATION FOR ORDINANCE NO. 1528
Erica N. Yasuda, 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 October 4, 2022, by the following vote:
COUNCILMEMBER AYES: Lumbard, Cooper, Clark, Gallagher, Gomez (5)
COUNCILMEMBER NOES: (0)
COUNCILMEMBER ABSTAINED: (0)
COUNCILMEMBER ABSENT: (0)
DocuSigned by:
f—yi(& a.Sl't
jA
ER X36 YMgJDA,
City Clerk
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
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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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