The purposes of this chapter is to specify how compliance with State Density Bonus Law pursuant to Sections 65915 to 65918 of the California Government Code will be implemented as required by California Government Code Section 65915(a). In enacting this chapter it is also the intent of the City of Campbell to implement the goals, objectives, and policies of the city's General Plan Housing Element, which includes a program to encourage the provision of housing affordable to a variety of household income levels and identifies a density bonus policy as one method to encourage the development of affordable housing (Program H-5s).

(Ord. No. 2293, § 1(Exh. B), 5-2-2023)

For the purposes of this chapter, the following definitions shall apply. All terms used in this Chapter that are defined in Chapter 21.72 (Definitions) shall have the meaning established in Chapter 21.72 (Definitions). Where terms that are defined in the Sections 65915 to 65918 of the California Government Code are inconsistent with the definitions of the same terms set forth in Chapter 21.72 (Definitions) of the Campbell Municipal Code, the meaning of the terms defined in Sections 65915 to 65918 of the California Government Code sections shall prevail.

"Acutely low-income household" means a household whose household income does not exceed the acutely low-income limits applicable to Santa Clara 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.

"Affordable ownership cost" means average monthly housing costs, during the first calendar year of a household's occupancy, as determined by the city, including mortgage payments, loan issuance fees, if any, property taxes, reasonable allowances for utilities and property maintenance and repairs, homeowners insurance, and homeowners association dues, if any, which do not exceed the following:

1.

For moderate-income households: one-twelfth of thirty-five percent of one hundred ten percent of area median income, adjusted for assumed household size based on presumed occupancy levels of one person in a studio apartment, two persons in a one-bedroom unit, three persons in a two-bedroom unit and one additional person for each additional bedroom thereafter;

2.

For lower-income households: one-twelfth of thirty percent of seventy percent of area median income, adjusted for assumed household size based on presumed occupancy levels of one person in a studio apartment, two persons in a one-bedroom unit, three persons in a two-bedroom unit and one additional person for each additional bedroom thereafter;

3.

For very low-income households: one-twelfth of thirty percent of fifty percent of area median income adjusted for assumed household size based on presumed occupancy levels of one person in a studio apartment, two persons in a one-bedroom unit, three persons in a two-bedroom unit and one additional person for each additional bedroom thereafter;

4.

For extremely low-income households: one-twelfth of thirty percent of thirty percent of area median income adjusted for assumed household size based on presumed occupancy levels of one person in a studio apartment, two persons in a one-bedroom unit, three persons in a two-bedroom unit and one additional person for each additional bedroom thereafter;

5.

For acutely low-income households: one-twelfth of thirty percent of fifteen percent of area median income adjusted for assumed household size based on presumed occupancy levels of one person in a studio apartment, two persons in a one-bedroom unit, three persons in a two-bedroom unit and one additional person for each additional bedroom thereafter;

"Affordable rent" shall have the same meaning as provided for in California Government Code section 65915;

"Base density" means the total number of housing units excluding "density bonus units" provided by the project, divided by the project lot acreage as determined in accordance with this Title, rounded up to the next whole number;

"Base units" means the total number of living units excluding density bonus units provided by the project;

"Density bonus units" mean the units granted by this Chapter in excess of the otherwise allowable maximum residential density;

"Extremely low-income household" means a household whose household income does not exceed the extremely low-income limits applicable to Santa Clara 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;

"Living unit" means one or more rooms designed, occupied, or intended for occupancy as separate living quarters with cooking, sleeping and bathroom facilities. For the purposes of this Chapter, Accessory Dwelling Units (ADUs) and Junior Accessory Dwelling Units (JADUs) shall not count as living units;

"Maximum base density" means the total number of living units per acre as excluding density bonus units allowable on the project site in accordance with this Title and the General Plan divided by the project lot acreage as determined in accordance with this Title, rounded up to the nearest whole number;

"Maximum allowable base units" mean the total number of living units excluding density bonus units that are allowable on the project site in accordance with this Title and the General Plan;

"Percentage density bonus" shall be the same as set forth in California Government Code sections 65915 through 65918;

"Target Units" means living units that will be restricted for sale or rent to qualifying residents at an affordable ownership cost or affordable rental cost in order to qualify a housing project for a density bonus;

"Within one-half mile of a major transit stop" means that all parcels within the project have no more than twenty-five percent of their area farther than one-half mile from the stop or corridor and not more than ten percent of the residential units or one hundred units, whichever is less, in the project are farther than one-half mile from the stop or corridor.

(Ord. No. 2293, § 1(Exh. B), 5-2-2023)

A.

Applicability. A "housing development project" as defined in Chapter 21.72 (Definitions) shall be eligible for a density bonus and other regulatory incentives that are provided by Sections 65915 to 65918 of the California Government Code when the applicant seeks and agrees to provide housing in the categories and/or in the below-market rate affordability threshold amounts specified in Sections 65915 to 65918 of the California Government Code. These benefits may be sought in addition to other benefits provided by the Campbell Municipal Code.

(Ord. No. 2293, § 1(Exh. B), 5-2-2023)

A.

Housing Incentives Request. Any applicant requesting a density bonus and any incentive(s), waiver(s), or parking reductions pursuant to Sections 65915 to 65918 of the California Government Code or other benefits provided by the Campbell Municipal Code shall submit a Housing Incentives Request as described below concurrently with the filing of the planning application for the first discretionary permit required for the housing development. Any requests for housing incentives shall be processed concurrently with the planning application.

B.

The housing incentives request shall include the following minimum information:

1.

Requested density bonus.

a.

Summary table showing the maximum number of dwelling units permitted by the zoning and general plan excluding any density bonus units, proposed affordable units by income level, proposed bonus percentage, number of density bonus units proposed, total number of dwelling units proposed on the site, and resulting density in units per acre;

b.

A tentative map and/or preliminary site plan, drawn to scale, showing the number and location of all proposed units, designating the location of proposed affordable units and density bonus units;

c.

The zoning and general plan designations and assessor's parcel number(s) of the housing development site;

d.

Calculation of the maximum number of dwelling units permitted by the city's zoning regulations and general plan for the housing development, excluding any density bonus units;

e.

A description of all dwelling units existing on the site in the five-year period preceding the date of submittal of the application and identification of any units rented in the five-year period. If dwelling units on the site are currently rented, income and household size of all residents of currently occupied units. If any dwelling units on the site were rented in the five-year period but are not currently rented, the income and household size of residents occupying dwelling units when the site contained the maximum number of dwelling units, if known;

f.

Description of any recorded covenant, ordinance, or law applicable to the site that restricted rents to levels affordable to below-market rate income households in the five-year period preceding the date of submittal of the application; and

g.

If a density bonus is requested for a land donation, the location of the land to be dedicated, proof of site control, and information that each of the requirements included in Government Code Section 65915(g) can be met.

2.

Requested incentive(s). In the event an application proposes incentives pursuant to Government Code Section 65915, the Housing Incentives Request shall include the following minimum information for each incentive requested:

a.

The city's usual development standard and the requested development standard or regulatory incentive; and

b.

Information that any requested incentive will reduce the cost of the housing development.

3.

Requested waiver(s). In the event an application proposes waivers of development standards pursuant to Government Code Section 65915, the housing incentives request shall include the following minimum information for each waiver requested:

a.

The city's usual development standard and the requested development standard; and

b.

Information that the development standards for which a waiver is requested will have the effect of physically precluding the construction of a development at the densities or with the concessions or incentives permitted by Government Code Section 65915.

4.

Requested parking reduction. In the event an application proposes a parking reduction pursuant to Government Code Section 65915(p), a table showing parking required by the zoning regulations and parking proposed under Section 65915(p).

5.

Child care facility. If a density bonus or incentive is requested for a child care facility, information that all of the requirements included in Government Code Section 65915(h) can be met.

6.

Condominium conversion. If a density bonus or incentive is requested for a condominium conversion, information that all of the requirements included in Government Code Section 65915.5 can be met.

(Ord. No. 2293, § 1(Exh. B), 5-2-2023)

A.

Number of units. In determining the total number of units to be granted, each component of any density calculation, including base density and bonus density, resulting in fractional units shall be separately rounded up to the next whole number. When calculating the number of affordable units needed for a given density bonus, any fractions of affordable dwelling units shall be rounded up to the next whole number. The allowable density bonus is computed as follows:

Step 1.

Calculate the percentage that the number of "target units" is of the total base units, rounding up to the next whole number;

Step 2.

Using the percentage calculated in Step 2, identify the corresponding percentage density bonus from California Government Code sections 65915 through 65918;

Step 3.

Determine the number of allowable density bonus units by multiplying the percentage density bonus times the maximum allowable base units, and rounding up to the next whole number.

B.

Each housing development is entitled to only one density bonus. If a housing development qualifies for a density bonus under more than one income category or additionally for the category of housing to be provided, the applicant shall select the category under which the density bonus is granted. Density bonuses from more than one category may not be combined.

C.

The density bonus units shall not be included in determining the number of affordable units required to qualify a housing development for a density bonus pursuant to Government Code Section 65915.

D.

The applicant may elect to accept a lesser percentage of a density bonus than the housing development is entitled to, including the utilization of no added density, but no reduction will be permitted in the percentages of required affordable units contained in Government Code Section 65915(b), (c), and (f).

E.

A housing development may receive credit toward satisfying any inclusionary units required by Chapter 21.24 (Inclusionary Housing Ordinance), when providing below-market rate units at the same, or a lower level of affordability, than specified in Sections 65915 to 65918 of the California Government Code.

(Ord. No. 2293, § 1(Exh. B), 5-2-2023)

A.

State incentives.

1.

Incentives and concessions. The number of incentives that may be requested shall be based upon the number the applicant is entitled to pursuant to Government Code Section 65915. Each deviation from a specific requirement of the Municipal Code or General Plan shall be treated as a separate incentive or concession.

B.

Local incentives.

1.

Financial Incentives. Nothing in this Chapter requires the provision of direct financial incentives for the housing development, including, but not limited to, the provision of financial subsidies, publicly owned land, fee waivers, or waiver of dedication requirements. The city, at its sole discretion, may choose to provide such direct financial incentives.

2.

Density bonus for providing acutely- or extremely very low-income units. Projects providing five percent of the total living units as target units restricted to acutely or extremely very low-income households, not otherwise credited by another law or provision, shall receive a density bonus of thirty percent that shall not be combined with any other density bonus.

(Ord. No. 2293, § 1(Exh. B), 5-2-2023)

All requests for density bonus, incentives, parking reductions, or waivers shall be considered and acted upon by the same approval body with authority to approve the housing development project, that would be required if the density bonus, incentive, parking reduction, or waivers were not a part of the development proposal.

(Ord. No. 2293, § 1(Exh. B), 5-2-2023)

A.

Except where a density bonus is provided for a market-rate senior housing development, the applicant shall enter into an affordable housing agreement with the city, in a form approved by the city attorney, to be executed by the city manager, to ensure that the requirements of this subsection are satisfied. The affordable housing agreement shall guarantee the affordability of the affordable units for a minimum of fifty-five years or a longer period of time if required by the construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy program; shall identify the type, size and location of each affordable unit; and shall specify phasing of the affordable units in relation to the market-rate units.

B.

Where a density bonus is provided for a market-rate senior housing development, the applicant shall enter into a restrictive covenant with the city, running with the land, in a form approved by the city attorney, to be executed by the city manager, to require that the housing development be operated as "housing for older persons" consistent with State and federal fair housing laws.

C.

The executed affordable housing agreement or senior housing agreement shall be recorded against the housing development prior to final or parcel map approval, or, where a map is not being processed, prior to issuance of building permits for the housing development. The affordable housing agreement or senior housing agreement shall be binding on all future owners and successors in interest.

(Ord. No. 2293, § 1(Exh. B), 5-2-2023)

A.

Permit Issuance and Final. The city may not issue building permits for more than fifty percent of the market rate units until it has issued building permits for all of the affordable units, and the city may not approve any final inspections or certificates of occupancy for more than fifty percent of the market rate units until it has issued final inspections or certificates of occupancy for all of the affordable units.

(Ord. No. 2293, § 1(Exh. B), 5-2-2023)

A.

Appearance and quality. Affordable units shall be comparable in exterior appearance and overall quality of construction to market-rate units in the same housing development. Interior finishes and amenities may differ from those provided in the market rate units, but neither the workmanship nor the products may be of substandard or inferior quality as determined by the city. Further, if air conditioning is provided for the market-rate units, all affordable units shall also be provided with air conditioning.

B.

Distribution. The assignment of below-market rate units shall be proportionally distributed in terms of bedroom count, product type, and location (i.e., distributed proportionally by building, floors, and geography). In the event that an inequal distribution of units by income level would occur, the units with the greatest number of bedrooms shall be provided.

(Ord. No. 2293, § 1(Exh. B), 5-2-2023)

A.

Priority for rental or purchase of units. Preference in the rental or purchase of affordable units shall be the same as provided in Section 21.24.040.F of the city's Inclusionary Ordinance.

(Ord. No. 2293, § 1(Exh. B), 5-2-2023)

A.

If any portion of this subsection conflicts with Government Code Section 65915 or other applicable state law, state law shall supersede this subsection. Any ambiguities in this section shall be interpreted to be consistent with Government Code Section 65915 and Government Code Section 65915(r).

(Ord. No. 2293, § 1(Exh. B), 5-2-2023)