This chapter shall be called the density bonus ordinance of the County of Alameda.

(Ord. No. 2012-58, § 26, 4-10-12)

This chapter establishes policies which facilitate the development of affordable housing for very low and lower income households and senior households within the unincorporated area of Alameda County, through the provision of a density bonus, and additional financial incentives if necessary for affordability, to applicants who agree to meet the requirements established by this chapter.

(Ord. No. 2012-58, § 26, 4-10-12)

For the purposes of this chapter, certain words and phrases shall be interpreted as set forth in this section unless it is apparent from the context that a different meaning is intended:

"Affordable housing agreement" means the agreement made between the applicant and the county governing the regulation and monitoring of the affordable units.

"Amenities" means interior amenities including, but not limited to, fireplaces, garbage disposals, dishwashers, cabinets and storage space and bathrooms in excess of one.

"Applicant" means any person, firm, partnership, association, joint venture, corporation, or any entity or combination of entities which seeks a density bonus or incentives or both under this chapter.

"Base units" means the number of units that would be allowed under the general plan land use designation and zoning ordinance for the subject site before calculation of the density bonus.

"Child care facility" means a facility, other than a day care home, licensed by the State of California to provide non-medical care to children under eighteen (18) years of age in need of personal services, supervision or assistance on less than a 24-hour basis.

"Density bonus" means an increase in density over the otherwise maximum allowable residential density under the applicable zoning ordinance and general plan land use designation taking into account all applicable limitations.

"Density bonus unit" means a residential dwelling unit authorized as a result of the granting of a density bonus.

"Household" means one person living alone or two or more persons sharing a residential dwelling.

"Housing development" means a project providing residential units including, without limitation, a subdivision, a planned unit development, multifamily dwellings, or condominium project. Housing developments consist of development of residential units or creation of unimproved residential lots and also include either a project to substantially rehabilitate and convert an existing commercial building to residential use or the substantial rehabilitation of an existing multifamily dwelling, where the result of the rehabilitation would be a net increase in available residential units.

"Incentive" may include any of the following:

1.

Approval of a mixed-use development if commercial, office, industrial, or other land uses will help to offset the costs of the housing development. A mixed-use development will be approved only if the commercial, office, industrial, or other land uses are compatible with the surrounding land uses, the county general plan, and applicable specific plans;

2.

Government-assisted financing, including, but not limited to, mortgage revenue bonds issued by the county;

3.

A reduction in site development standards, but only if the overall quality of the development is not lessened. All developments must also meet any design guidelines codified by the county at a future date;

4.

Other incentives proposed by the developer or the county which result in identifiable cost reductions, including but not limited to:

a.

Waiver or reduction of certain county fees applicable to restricted units in a housing development,

b.

Reduction of interior amenities,

c.

Priority processing of a housing development which provides restricted units. Upon certification that the application is complete and eligible for priority processing, the housing development will be reviewed by the planning director in advance of all nonpriority items. The housing development review will be completed and a recommendation will be made by the planning director whether to approve the housing development within one hundred twenty (120) days of receipt of the completed application. The planning director may give written approval to extend the one hundred twenty (120) day period.

"Lower income household" means a household whose gross income is eighty (80) percent or less of the Alameda County median income adjusted for household size, computed pursuant to California Health and Safety Code Section 50079.5; if the Health and Safety Code definition is amended, this definition shall be deemed to be amended to the same effect.

"Maximum allowable residential density" means the density allowed under the general plan, or if a range of density is permitted, means the maximum allowable density for the specific zoning range applicable to the project. Maximum allowable residential density takes into account limitations to density pursuant to general plan policies and zoning ordinance regulations.

"Median income" means the median income for Alameda County, published by the United States Department of Housing and Urban Development.

"Moderate income household" means a household, with an annual income which does not exceed the United States Department of Housing and Urban Development annual determination for moderate income households with incomes of one hundred twenty (120) percent of the median income, adjusted for household size.

"Qualifying unit" means a dwelling or dwellings designated for occupancy by very low, low, or moderate income households, within a housing development, which make the housing development eligible for a density bonus.

"Resale controls" means a resale restriction placed on restricted units by which the price of such units and/or the age or income of the purchaser will be restricted to ensure affordability and occupancy by very low or lower income households or senior households.

"Restricted unit" means a residential dwelling unit to be sold or rented at a price or rent affordable to a very low, lower, or moderate income household, or sold or rented to a senior household.

"Senior citizen housing development" means a housing community governed by a common set of rules, regulations or restrictions, consisting of at least thirty-five (35) dwelling units reserved for senior citizen households as further described in California Civil Code Sections 51.3 and 51.12.

"Senior household" means as established by California Civil Code Section 51.3, a household in which at least one member is at least sixty-two (62) years of age.

"Term of affordability" means the time during which restricted units in a housing development must remain as restricted units.

"Unit type" means a dwelling unit with a defined floor area and a designated number of bedrooms.

"Very low income household" means a household whose gross income is fifty (50) percent or less of the Alameda County median income adjusted for household size, computed pursuant to California Health and Safety Code Section 50079.5.

(Ord. No. 2012-58, § 26, 4-10-12)

In order to qualify for a density bonus and one or more incentives under this chapter, a housing development must consist of five or more dwelling units and meet one or more of the following criteria:

A.

Agrees to construct and maintain at least five percent of the base units for very low income households;

B.

Agrees to construct and maintain at least ten (10) percent of the base units for lower income households;

C.

Agrees to construct and maintain at least ten (10) percent of the base units in a condominium project or planned development project dedicated to moderate income households, provided that all units in the development are offered to the public for purchase;

D.

Agrees to construct and maintain a senior citizen housing development;

E.

Converts an existing apartment or multifamily dwelling to a condominium development as described in Section 17.106.050(I) (Density bonus—Density bonus calculations).

(Ord. No. 2012-58, § 26, 4-10-12)

A.

In accordance with state law, the granting of a density bonus or an incentive(s) shall not be interpreted, in and of itself, to require a general plan amendment, specific plan amendment, rezone, or other discretionary approval.

B.

An applicant must choose a density bonus from only one applicable affordability category of this chapter and may not combine categories, with the exception of a child care facility or land donation. The child care facility or land donation may be combined with an affordable housing development for an additional density bonus up to a combined maximum of thirty-five (35) percent.

C.

Any density bonus and/or concession/incentive awarded shall apply only to the housing development for which it was granted.

D.

In determining the number of density bonus units to be granted pursuant to Section 17.106.040 (Density bonus qualifications), the maximum residential density for the site shall be multiplied by 0.20 for subsections A, B, and D of that section and 0.05 for subsection C of that section, unless a lesser number is selected by the developer.

1.

For each one percent increase above ten percent in the percentage of units affordable to lower income households, the density bonus shall be increased by 1.5 percent up to a maximum of thirty-five (35) percent.

2.

For each one percent increase above five 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 of thirty-five (35) percent.

3.

For each one percent increase above ten (10) percent of the percentage of units affordable to moderate income households, the density bonus shall be increased by one percent up to a maximum of thirty-five (35) percent.

4.

For a senior housing development that provides one hundred (100) percent of its units available to senior households, the density bonus shall be twenty (20) percent.

E.

When calculating the number of permitted density bonus units, any calculations resulting in fractional units shall be rounded to the next larger integer.

F.

The density bonus units shall not be included when determining the number of qualifying units required for a density bonus. When calculating the required number of qualifying units, any calculations resulting in fractional units shall be rounded to the next larger integer.

G.

The developer may request a lesser density bonus than the project is entitled to, but no reduction will be permitted in the number of required qualifying units pursuant to Section 17.106.040 (Density bonus qualifications) above. Regardless of the number of qualifying units, no housing development may be entitled to a density bonus of more than thirty-five percent.

H.

The following table summarizes this information:

Density Bonus Summary Table

I.

An applicant for an apartment conversion to a condominium project that provides 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 project to lower income households, and agrees to pay for the reasonable necessary administrative costs incurred by the county, qualify for a twenty-five (25) percent density bonus or other incentives of equivalent financial value. An applicant shall be ineligible for a density bonus or other incentives if the apartments proposed for conversion constitute a housing development for which a density bonus or other incentives were previously granted under the provisions of this chapter.

(Ord. No. 2012-58, § 26, 4-10-12)

A.

A housing development qualifying for a density bonus is entitled to at least one incentive in addition to the density bonus. Incentives are available for qualifying housing developments as follows:

1.

One incentive or concession for projects that include at least ten (10) percent of the total units for lower income households, at least five (5) percent for very low income households, or at least ten (10) percent for persons and families of moderate income in a condominium or planned development.

2.

Two incentives or concessions for projects that include at least twenty (20) percent of the total units for lower income households, at least ten (10) percent for very low income households, or at least twenty (20) percent for persons and families of moderate income in a condominium or planned development.

3.

Three incentives or concessions for projects that include at least thirty (30) percent of the total units for lower income households, at least fifteen (15) percent for very low income households, or at least thirty (30) percent for persons and families of moderate income in a condominium or planned development.

B.

The appropriate authority for the housing development shall grant the incentive unless the appropriate authority makes a written finding, based upon substantial evidence, of any of the following:

1.

That the incentive is not necessary in order to provide for affordable housing costs; or

2.

The concession or incentive would have a specific adverse impact, as defined in California Health & Safety Code 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 very low, lower and moderate income households.

C.

In accordance with Government Code Section 65915 (p), an applicant qualifying for a density bonus may request, inclusive of handicapped and guest parking, the following parking ratios:

1.

Zero to one bedrooms: One onsite parking space.

2.

Two to three bedrooms: Two onsite parking spaces.

3.

Four or more bedrooms: Two and one-half parking spaces.

These standards may be applied in addition to any other incentives for which the housing development qualifies as specified in this section. If the total number of parking spaces for the development is other than a whole number, the number shall be rounded up to the next whole number. Off-street parking spaces provided pursuant to this paragraph may be arranged in tandem and may be uncovered.

(Ord. No. 2012-58, § 26, 4-10-12)

A.

The applicant shall execute an affordable housing agreement with Alameda County, which shall be recorded and shall run with the land.

B.

The affordable housing agreement shall describe household types, number, location, size and construction scheduling of restricted units and any other information required by the county to determine the applicant's compliance with the conditions.

C.

Restricted units shall be constructed concurrently with or prior to the construction of nonrestricted units, shall be dispersed throughout the housing development, and shall include all unit types represented in the housing development and shall be in the same proportions as nonrestricted unit types.

(Ord. No. 2012-58, § 26, 4-10-12)

The applicant shall agree to, and the county shall ensure, the continued availability of the qualifying units and other incentives for a period of at least thirty (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.

(Ord. No. 2012-58, § 26, 4-10-12)

A.

All restricted units shall be occupied by the household type specified in the affordable housing agreement.

B.

The applicant shall be responsible for obtaining and verifying information with respect to the qualifications of prospective and current tenants, including, but not limited to, information relating to tenants' incomes, and eligibility, in a form satisfactory to the planning director. The applicant shall maintain a list of qualified applicants for the duration of the program and shall allow the planning director to inspect such information upon reasonable notice. The applicant may contract with another entity to perform these functions subject to the approval of the planning director.

C.

The applicant shall submit reports annually certifying that the restricted units are occupied by the household types specified in the affordable housing agreement. The annual reports shall include the number of persons and income for each household in the restricted units.

D.

If the affordable housing agreement is violated, the applicant shall pay to the county as liquidated damages the maximum sum of five thousand dollars ($5,000.00) for each restricted unit that is in violation of the affordable housing agreement. This amount may be required for each month of violation. Any unpaid liquidated damages may be recorded as a notice of violation of the affordable housing agreement against the title of the property. In addition to the liquidated damages, if a very low income, moderate income or lower income household in a restricted unit is charged a rent that exceeds the rent specified in the affordable housing agreement, the applicant must pay to the tenant the difference in the rent charged and the allowable rent for the months that the tenant was overcharged. If a restricted unit is rented to a household with an income exceeding that specified in the affordable housing agreement, in lieu of the liquidated damages mentioned above, the first vacant nonrestricted unit must be made a restricted unit and rented to a household that qualifies under the affordable housing agreement.

(Ord. No. 2012-58, § 26, 4-10-12)

A.

The home buyer shall verify on a form provided by the planning director that the restricted unit being purchased is for use as the buyer's principal residence and that the buyer is either a moderate income household, lower income household, very low income household or a senior household. If the restricted unit ceases to function as the owner's principal residence, it shall be sold according to the requirements of the resale controls. If evidence is presented to the planning director that the owner is unable to continuously occupy the restricted unit because of illness or incapacity, the planning director may approve rental of the restricted unit to a senior, very low income, lower income, or moderate income household.

B.

The resale controls will place limits on the resale price of a restricted unit and on the income of the new buyer. The resale price of a restricted unit will be limited to the original price of the restricted unit, plus a factor of appreciation equal to the annual increase in the median income, plus the appraised value, at time of sale, of any documented capital improvements. In addition, when an owner sells a restricted unit, the sale must be to a moderate income household, very low income household, lower income household, or senior household.

C.

Resale controls shall be recorded as part of the declaration of covenants, conditions, and restrictions on the restricted unit. The resale controls will remain in effect for the term of affordability.

D.

The following transfers of title or any interest therein are not subject to the provisions of this section, provided, however, that the resale controls shall continue to run with the land following such transfers: Transfers by gift, devise, or intestate succession to the owner's spouse or children, and transfers of title to a spouse as part of a dissolution of marriage proceeding or in conjunction with marriage.

(Ord. No. 2012-58, § 26, 4-10-12)

A.

An applicant may submit to the planning director a preliminary proposal for a housing development pursuant to this chapter prior to the submittal of any formal housing development application. The planning director shall, within ninety (90) days of receiving a preliminary proposal, provide the applicant a written preliminary evaluation of the housing development.

B.

In addition to the county's usual development requirements, formal application for a housing development under this chapter shall include the following information:

1.

A written statement specifying the desired density increase, incentive requested, and the number, type, location, size and construction schedule of all dwelling units;

2.

If necessary for the planning director to evaluate the financial need for additional incentives, the applicant shall submit a report that contains housing development costs and revenues, including but not limited to land, construction, and financing costs, and revenues from restricted units, unrestricted units, and density bonus units. Such other information as the planning director needs to evaluate the housing development may be requested by the planning director. The planning director may retain a consultant to review the financial report. The cost of the consultant shall be borne by the applicant; and

3.

Any other information requested by the planning director to implement this chapter.

C.

Housing developments that meet the requirements set forth in Section 17.106.040 (Density bonus qualifications) above shall qualify for a density bonus and at least one incentive, unless the planning director adopts a written finding that the incentive is not required to achieve the economic feasibility of the restricted units. The planning director may also provide an incentive in place of a density bonus that is of equivalent value to the density bonus. Such incentive shall be calculated in a manner determined by the planning director.

(Ord. No. 2012-58, § 26, 4-10-12)

A.

When an applicant proposes a housing development that is eligible for a density bonus under this chapter and includes a child care facility on the premises or adjacent to the housing development, the applicant shall receive an additional density bonus that is in an amount of square feet of residential space that is equal to the square footage of the child care facility; or the applicant may receive another incentive that contributes significantly to the economic feasibility of the construction of the child care facility, provided that, in both cases, the following conditions are incorporated in the conditions of approval for the housing development:

1.

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 restricted units are required to remain affordable pursuant to the terms of the affordable housing agreement executed between the county and the developer.

2.

Attendance of children at the child care facility shall have an equal or greater percentage of children from very low, low, and moderate income households than the percentage of affordable units in the housing development.

B.

The county may deny the request for a density bonus or incentive for a child care facility if the county finds, based upon substantial evidence, that the community has adequate child care facilities without the facilities being considered as part of the subject housing development.

(Ord. No. 2012-58, § 26, 4-10-12)

A.

When an applicant for a tentative subdivision map, parcel map or other residential development donates land to the county, the applicant shall be entitled to a density bonus above the maximum allowable residential density, up to a maximum of thirty-five (35) percent depending on the amount of land donated. The amount of density bonus shall be based upon the number of permittable units consistent with Section 17.106.050(H). This increase shall be in addition to any increase in density permitted by this chapter up to a maximum combined density increase of thirty-five (35) percent. A density bonus for donation of land shall only be considered 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 the amount not less than ten (10) percent of the residential units in the proposed development.

3.

The transferred land is at least one 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 for development as affordable housing, and is, or will be, served by adequate public facilities and infrastructure (such as waste water treatment facilities and public transit). The transferred 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 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 units on the transferred land, except that the county may subject the proposed development to subsequent design review if the design is not reviewed by the County prior to the time of transfer.

4.

The transferred land and the units constructed on said land shall be subject to a deed restriction ensuring continued affordability of the units for a period of at least thirty (30) years and subject to restrictions consistent with California Government Code Section 65915 (c)(1) and (2), as may be periodically amended.

5.

The land is transferred to the county or to a housing developer approved by the county.

6.

The transferred land shall be within the boundary of the proposed development or, if the county determines appropriate, be located within the same general plan area as the proposed development.

(Ord. No. 2012-58, § 26, 4-10-12)

A.

At the discretion of the planning director, the county may contract with another entity to administer the rental and sales provisions of this chapter.

B.

The planning director shall establish the amount of fees to be charged to applicants for administration of this chapter at the cost of staff time attributable to such administration. These fees may be waived or reduced as specified in Section 17.106.030 (Definitions) under subsection (4)(a) of the definition of "incentive."

C.

The planning director shall be responsible for monitoring the resale of restricted units.

D.

The planning director shall adopt regulations and forms necessary to implement and interpret the provisions of this chapter.

(Ord. No. 2012-58, § 26, 4-10-12)