This Density Bonus Ordinance is intended to provide incentives for the production of housing for very low, lower income, or senior households in accordance with Sections 65915 and 65917 of the California Government Code. In enacting this Chapter, it is the intent of the City of Adelanto 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 be publicized by the City and shall apply throughout the City. Sections of the California Government Code referenced in this Chapter and application forms for complying with this Chapter, shall be available to the public.

Whenever the following terms are used in this Chapter, they shall have the meaning established by this section:

"Additional Incentives" means such regulatory concessions as specified in California Government Code Subsections 65915 (d) and (h) to include, but not be limited to, the reduction of site development standards or zoning code requirements, direct financial assistance, approval of mixed-use zoning in conjunction with the Housing Development, or any other regulatory incentive which would result in identifiable cost avoidance or reductions that are offered in addition to a Density Bonus. See Section 17.21.050 of this Chapter.

"Affordable Rent" means monthly housing expenses, including a reasonable allowance for utilities, for rental Target Units reserved for Very Low or Lower Income Households, not exceeding the following calculations:

   (1)    Very Low Income: 50 percent of the area median income for San Bernardino County, adjusted for household size, multiplied by 30 percent and divided by 12.

   (2)    Lower Income: 60 percent of the area median income for San Bernardino County, adjusted for household size, multiplied by 30 percent and divided by 12.

"Affordable Sales Price" means a sales price at which Lower or Very Low Income Households can qualify for the purchase of Target Units, calculated on the basis of underwriting standards of mortgage financing available for the development.

"Density Bonus" means a minimum density increase of at least 25 percent over the otherwise Maximum Residential Density.

"Density Bonus Housing Agreement" means a legally binding agreement between a developer and the City to ensure that the requirements of this Chapter are satisfied. The agreement, among other things, shall establish: the number of Target Units, their size, location, terms and conditions of affordability, and production schedule. See Section 17.21.070 of this Chapter.

"Density Bonus Units" means those residential units granted pursuant to the provisions of this Chapter which exceed the otherwise Maximum Residential Density for the development site.

"Equivalent Financial Incentive" means a monetary contribution, based upon a land cost per dwelling unit value, equal to one of the following:

   (1)    A Density Bonus and an Additional Incentive(s); or

   (2)    A Density Bonus, where an Additional Incentive(s) is not requested or is determined to be unnecessary. See Section 17.21.040 of this Chapter.

"Housing Cost" means the sum of actual or projected monthly payments for all of the following associated with for-sale Target Units: principal and interest on a mortgage loan, including any loan insurance fees, property taxes and assessments, fire and casualty insurance, property maintenance and repairs, homeowner association fees, and a reasonable allowance for utilities.

"Housing Development" means construction projects consisting of five or more residential units, including single family, multifamily, and mobilehomes for sale or rent, pursuant to this Chapter.

"Lower Income Household" means households whose income does not exceed the lower income limits applicable to San Bernardino County, as published and periodically updated by the State Department of Housing and Community Development pursuant to Section 50079.5 of the California Health and Safety Code.

"Maximum Residential Density" means the maximum number of residential units permitted by the City's General Plan Land Use Element and Zoning Ordinance at the time of application, excluding the provisions of this Chapter. If the housing development is within a planned development overlay zone, the maximum residential density shall be determined on the basis of the general plan and the maximum density of the underlying zone.

"Non-Restricted Unit" means all units within a Housing Development excluding the Target Units.

"Qualifying Resident" means senior citizens or other persons eligible to reside in Senior Citizen Housing.

"Senior Citizen Housing" means a housing development consistent with the California Fair Employment and Housing Act (Government Code Section 12900 et. seq., including 12955.9 in particular), which has been "designed to meet the physical and social needs of senior citizens," and which otherwise qualifies as "housing for older persons" as that phrase is used in the federal Fair Housing Amendments Act of 1988 (P.L. 100-430) and implementing regulations (24 CFR, part 100, subpart E), and as that phrase is used in California Civil Code Section 51.2 and 51.3.

"Target Unit" means a dwelling unit within a Housing Development which will be reserved for sale or rent to, and affordable to, Very Low or Lower Income Households, or Qualifying Residents.

"Very Low Income Household" means households whose income does not exceed the very low income limits applicable to San Bernardino 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.

The City shall grant either: a Density Bonus, or a Density Bonus with an Additional Incentive(s),or Equivalent Financial Incentives, as set forth in Section 17.21.050 of this Chapter, to an applicant or developer of a Housing Development, who agrees to provide the following:

   (1)    At least 20 percent of the total units of the Housing Development as Target Units affordable to Lower Income Households; or

   (2)    At least 10 percent of the total units of the Housing Development as Target Units affordable to Very Low Income Households; or

   (3)    Senior citizen housing.

      In determining the minimum number of Density Bonus Units to be granted pursuant to this Section, the Maximum Residential Density for the site shall be multiplied by .25. When calculating the number of permitted Density Bonus Units, any fractions of units shall be rounded to the next larger integer.

      In determining the number of Target Units to be provided pursuant to this Section, the Maximum Residential Density shall be multiplied by .10 where Very Low Income Households are targeted, or by .20 where Lower Income Households are targeted. The Density Bonus Units shall not be included when determining the total number of Target Units in the Housing Development. When calculating the required number of Target Units, any resulting decimal fraction shall be rounded to the next larger integer. In cases where a density increase of less than 25 percent is requested, no reduction will be allowed inthe number of Target Units required. In cases where a density increase of more than 25 percent is requested, the requested density increase, if granted, shall be considered an Additional Incentive, as outlined in Section 17.21.050 of this Chapter.

      In cases where the developer agrees to construct more than 20 percent of the total units for Lower Income Households, or more than 10 percent of the total units for Very Low Income Households, the developer is entitled to only one Density Bonus and an Additional Incentive(s) (or an Equivalent Financial Incentive) pursuant to Section 17.21.050 of this Chapter. Similarly, a developer who agrees to construct Senior Citizen Housing with 20 or 10 percent of the units reserved for Lower- or Very Low-Income Households, respectively, is only entitled to one Density Bonus and an Additional Incentive(s). The City may, however, grant multiple Additional Incentives to facilitate the inclusion of more Target Units than are required by this Chapter.

Target Units should be constructed concurrently with Non-Restricted Units unless both the City/County and the developer/applicant agree within the Density Bonus Housing Agreement to an alternative schedule for development.

Target Units shall remain restricted and affordable to the designated group for a period of 30 years (or a longer period of time if required by the construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy program), under the following circumstances:

   (1)    Both a Density Bonus and an Additional Incentive(s) is granted; or

   (2)    An Equivalent Financial Incentive equivalent to a Density Bonus and an Additional Incentive(s) is granted.

      Target Units shall remain restricted and affordable to the designated group for a period of 10 years under the following circumstances:

   (1)    Only a Density Bonus is granted and no Additional Incentives are granted; or

   (2)    An Equivalent Financial Incentive equivalent to only a Density Bonus is granted.

      In determining the maximum Affordable Rent or Affordable Sales Price of Target Units the following household and unit size assumptions shall be used, unless the Housing Development is subject to different assumptions imposed by other governmental regulations:

 

 

      Target Units should be built on-site wherever possible and, when practical, be dispersed within the Housing Development. Where feasible, the number of bedrooms of the Target Units should be equivalent to the bedroom mix of the non-Target units of the Housing Development; except that the Developer may include a higher proportion of Target Units with more bedrooms. The design and appearance of the Target Units shall be compatible with the design of the total Housing Development. Housing Developments shall comply with all applicable development standards, except those which may be modified as provided by this Chapter.

      Circumstances may arise in which the public interest would be served by allowing some or all of the Target Units associated with one Housing Development to be produced and operated at an alternative development site. Where the developer and the City form such an agreement, the resulting linked developments shall be considered a single Housing Development for purposes of this Chapter. Under these circumstances, the developer shall be subject to the same requirements of this Chapter for the Target Units to be provided on the alternative site.

      A Density Bonus Housing Agreement shall be made a condition of the discretionary planning permits (e.g., tract maps, parcel maps, site plans, planned development or conditional use permits, etc.) for all Housing Developments pursuant to this Chapter. The Agreement shall be recorded as a restriction on the parcel or parcels on which the Target Units will be constructed. The Agreement shall be consistent with Section 17.21.070 of this Chapter.

The City shall provide a Density Bonus and an Additional Incentive(s), for qualified Housing Developments, upon the written request of a developer, unless the City makes a written finding that the Additional Incentive(s) is not necessary to make the Housing Development economically feasible and to accommodate a Density Bonus.

The development incentives granted shall contribute significantly to the economic feasibility of providing the Target Units. Applicants seeking a waiver or modification of development or zoning standards shall show that such waivers or modifications are necessary to make the Housing Development economically feasible in accordance with Government Code Section 65915(e). This requirement may be satisfied by reference to applicable sections of the City's general plan Housing Element.

The need for incentives will vary for different Housing Developments. Therefore, the allocation of Additional Incentives shall be determined on a case-by-case basis. The Additional Incentives may include, but are not limited to, any of the following:

   (1)   A reduction of site development standards or a modification of zoning code or architectural design requirements which exceed the minimum building standards provided in Part 2.5 (commencing with Section 18901) of Division 13 of the California Health and Safety Code. These may include, but are not limited to, one or more of the following:

      (a)    Reduced minimum lot sizes and/or dimensions.

      (b)    Reduced minimum lot setbacks.

      (c)    Reduced minimum outdoor and/or private outdoor living area.

      (d)    Increased maximum lot coverage.

      (e)    Increased maximum building height and/or stories.

      (f)    Reduced on site parking standards, including the number or size of spaces and garage requirements.

      (g)    Reduced minimum building separation requirements.

      (h)    Reduced street standards, e.g., reduced minimum street widths.

   (2)   Allow the Housing Development to include non-residential uses and/or allow the Housing Development within a non-residential zone.

   (3)   Other regulatory incentives or concessions proposed by the developer or the City/County which result in identifiable cost reductions or avoidance.

   (4)   A Density Bonus of more than 25 percent.

   (5)   Waived, reduced, or deferred planning, plan check, construction permit, and/or development impact fees (e.g., capital facilities, park, or traffic fees).

   (6)   Direct financial aid (e.g., redevelopment set-aside, Community Development Block Grant funding) in the form of a loan or a grant to subsidize or provide low interest financing for on or off site improvements, land or construction costs.

      The City/County may offer an Equivalent Financial Incentive in lieu of granting a Density Bonus and an Additional Incentive(s). The value of the Equivalent Financial Incentive shall equal at least the land cost per dwelling unit savings that would result from a Density Bonus and must contribute significantly to the economic feasibility of providing the Target Units pursuant to this Chapter.

An application pursuant to this Chapter shall be processed concurrently with any other application(s) required for the Housing Development. Final approval or disapproval of an application (with right of appeal to the City Council) shall be made by the Planning Commission unless direct financial assistance is requested. If direct financial assistance is requested, the Planning Commission shall make a recommendation to the City Council who will have the authority to make the final decision on the application.

An applicant/developer proposing a Housing Development pursuant to this Chapter, may submit a preliminary application prior to the submittal of any formal request for approval of a Housing Development. Applicants are encouraged to schedule a pre-application conference with the Community Development Director or designated staff to discuss and identify potential application issues, including prospective Additional Incentives pursuant to Section 17.21.050 of this Chapter. No charge will be required for the pre-application conference. A preliminary application shall include the following information:

   (1)   A brief description of the proposed Housing Development, including the total number of units,Target Units, and Density Bonus Units proposed.

   (2)   The zoning and general plan designations and assessors parcel number(s) of the project site.

   (3)   A vicinity map and preliminary site plan, drawn to scale, including building footprints, driveway and parking layout.

   (4)   If an Additional Incentive(s) is requested, the application should describe why the Additional Incentive(s) is necessary to provide the Target Units, in accordance with Section 17.21.050 of this Chapter.

      Within 90 days of receipt of the preliminary application the City shall provide to an applicant/developer, a letter which identifies project issues of concern, (the maximum financial assistance that the Community Development Director can support when making a recommendation to the City Council, and the procedures for compliance with this Chapter.

      The Community Development Director shall inform the applicant/developer that the requested Additional Incentives shall be recommended for consideration with the proposed Housing Development, or that alternative or modified Additional Incentives pursuant to Section 17.21.050 shall be recommended for consideration in lieu of the requested Incentives. If alternative or modified Incentives are recommended by the Community Development Director, the recommendation shall establish how the alternative or modified Incentives can be expected to have an equivalent affordability effect as the requested Incentives.

Applicants/Developers requesting a Density Bonus, shall (draft and) agree to enter into a Density Bonus Housing Agreement with the City. The terms of the draft agreement shall be reviewed and revised as appropriate by the Community Development Director, who shall formulate a recommendation to the Planning Commission for final approval.

Following execution of the agreement by all parties, the completed Density Bonus Housing Agreement, or memorandum thereof, shall be recorded and the conditions therefrom filed and recorded on the parcel or parcels designated for the construction of Target Units. The approval and recordation shall take place prior to final map approval, or, where a map is not being processed, prior to issuance of building permits for such parcels or units. The Density Bonus Housing Agreement shall be binding to all future owners and successors in interest.

The Density Bonus Housing 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, as outlined in Section 17.21.030 of this Chapter, and the standards for determining the corresponding Affordable Rent or Affordable Sales Price and Housing Cost.

   (3)   The location, unit sizes (square feet), and number of bedrooms of Target Units.

   (4)   Tenure of use restrictions for Target Units of at least 10 or 30 years, in accordance with Section 17.21.040 of this Chapter.

   (5)   A schedule for completion and occupancy of Target Units.

   (6)   A description of the Additional Incentive(s) or Equivalent Financial Incentives being provided by the City.

   (7)   A description of remedies for breach of the agreement by either party (the City may identify tenants or qualified purchasers as third party beneficiaries under the agreement).

   (8)   Other provisions to ensure implementation and compliance with this Chapter.

      A.    In the case of for-sale Housing Developments, the Density Bonus Housing Agreement shall provide for the following conditions governing the initial sale and use of Target Units during the applicable use restriction period:

         (1)   Target Units shall, upon initial sale, be sold to eligible Very Low or Lower Income Households at an Affordable Sales Price and Housing Cost, or to Qualified Residents (i.e., maintained as Senior citizen housing) as defined by this Chapter.

         (2)   Target Units shall be initially owner-occupied by eligible Very Low or Lower Income Households, or by Qualified Residents in the case of Senior citizen housing.

         (3)   The initial purchaser of each Target Unit shall execute an instrument or agreement approved by the City restricting the sale of the Target Unit in accordance with this ordinance during the applicable use restriction period. Such instrument or agreement shall be recorded against the parcel containing the Target Unit and shall contain such provisions as the City may require to ensure continued compliance with this ordinance and the state Density Bonus Law.

      B.    In the case of rental Housing Developments, the Density Bonus Housing Agreement shall provide for the following conditions governing the use of Target Units during the use restriction period:

         (1)   The rules and procedures for qualifying tenants, establishing Affordable Rent, filling vacancies, and maintaining Target Units for qualified tenants;

         (2)   Provisions requiring owners to verify tenant incomes and maintain books and records to demonstrate compliance with this Chapter.

         (3)   Provisions requiring owners to submit an annual report to the City, which includes the name, address, and income of each person occupying Target Units, and which identifies the bedroom size and monthly rent or cost of each Target Unit.