The intent of the density bonus program is to contribute significantly to the economic feasibility of affordable housing in proposed developments by offering incentives to developers consisting of density bonuses or other concessions of equal financial value, in compliance with Government Code sections 65915 and 65917.

(Ord. No. 2020-1059, § 1, 3-23-2020)

Density bonuses may be granted and agreements entered into between the City and developer in conjunction with a zone change, planned community development, architectural site plan application approval, subdivisions or other permit approvals granted by the City. The following provisions shall apply to density bonuses:

A.

Housing developments must have a minimum of five units, excluding any bonus units, to qualify for the density bonus program provided by this chapter, and meet one or more of the following criteria:

1.

Ten percent of the total units are designated for lower-income households, as defined in section 50079.5 of the Health and Safety Code.

2.

Five percent of the total units are designated for very low-income households, as defined in section 50105 of the Health and Safety Code.

3.

Ten percent of the total dwelling units in a common interest development, as defined in section 4100 of the Civil Code, for persons and families of moderate income, as defined in section 50093 of the Health and Safety Code, provided that all units in the development are offered to the public for purchase.

3.

Fifty percent of the total units are designated for senior citizens, as defined in sections 51.3 and 51.12 of the Civil Code.

4.

Ten 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, or homeless persons, as defined in the federal McKinney-Vento Homeless Assistance Act (42 U.S.C. sec. 11301 et seq.)

B.

Projects which meet the requirements of this chapter shall qualify for a density bonus of up to 35 percent increase in the number of dwelling units authorized for a particular parcel of land beyond the otherwise maximum allowable residential density under this title or general plan, whichever is greater, as of the date of application for a project. In addition, a developer shall be entitled to at least one other concession or incentive unless the City adopts a written finding that the additional concession or incentive is not required in order to provide affordable housing costs as defined in section 50052.5 of the California Health and Safety Code, or the concession or incentive would have a specific adverse impact as defined in paragraph (2) of subdivision (d) of section 65589.5 of the California Government Code, or the concession or incentive would be contrary to State or federal law, or the City shall provide other incentives of equivalent financial value based on the land cost per dwelling unit.

C.

If the developer agrees to construct both ten percent of the total units for lower-income households and five percent of the total units for very low-income households, the developer is entitled to one additional incentive as identified in section 18.39.030 of this chapter, and may, at the discretion of the City, receive more than one density bonus.

D.

The City shall, within 90 days of receipt of a written proposal, notify the developer, in writing, of the procedures governing these provisions.

E.

The City Council may approve the density bonus and regulatory concessions and/or incentives only if all of the following findings are made:

1.

The developer has proven that the density bonus and adjustment of standards is necessary to make the project economically feasible.

2.

Additional adjustment of standards is not required in order for rents for the targeted units to be set, pursuant to California Government Code section 65915, subdivision (c).

3.

The proposed project is compatible with the purpose and intent of the Ceres General Plan and applicable zoning and development policies.

4.

The concession or incentive would not have a specific adverse impact on public health, public safety, or the physical environment, and for which there is no feasible method to satisfactorily mitigated or avoid the specific adverse impact, or adverse impact, without rendering the development unaffordable to low- and moderate-income households. A specific adverse impact is 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.

(Ord. No. 2020-1059, § 1, 3-23-2020)

For the purposes of this chapter, concession or incentive means any of the following:

A.

A consideration of alternative site development standards or a modification of Zoning Code requirements or architectural design requirements that exceed minimum building standards approved by the State of California Building Standards Commission as provided in part 2.5 (commencing with section 18901) of division 13 of the California Health and Safety Code, including, but not limited to, a reduction in setback and square footage requirements and in the ratio of vehicular parking spaces that would otherwise be required that results in identifiable, financially sufficient, and actual cost reductions.

B.

One incentive or concession for projects that include at least ten percent of the total units for lower-income households, at least five percent for very low-income households, or at least ten percent for persons and families of moderate income in a common interest development.

C.

Two incentives or concessions for projects that include at least 20 percent of the total units for lower-income households, at least ten percent for very low-income households, or at least 20 percent for persons and families of moderate income in a common interest development.

D.

Three incentives or concessions for projects that include at least 30 percent of the total units for lower-income households, at least 15 percent for very low-income households, or at least 30 percent for persons and families of moderate income in a common interest development.

E.

Approval of mixed-use zoning in conjunction with the housing project if commercial, office, industrial, or other land uses will reduce the cost of the housing development and if the commercial, office, industrial, or other land uses are compatible with the housing project and the existing or planned development in the area where the proposed housing project will be located.

F.

Other regulatory incentives or concessions proposed by the developer or the City which result in identifiable actual cost reductions may include, but are not limited to:

1.

Certain applicable City fees in a project may be waived, reduced or deferred.

2.

A project which provides affordable housing under the terms of this chapter may be entitled to priority processing.

3.

Contributions of redevelopment tax increment housing set-aside funds.

4.

Technical assistance with the preparation of an application for State or federal funds.

5.

Financing with tax-exempt bonds or mortgage credit certificates, if they are issued by the City.

(Ord. No. 2020-1059, § 1, 3-23-2020)

A.

The developer shall enter into a written agreement with the City to guarantee the continued use and availability of the affordable units to very low- and low-income households for a period as determined by the City. If financing or subsidy programs for the project designate a preservation period, the affordability of restricted units shall be maintained for at least the designated preservation period.

B.

Requirements for the affordable units shall be established in conjunction with project approval. Evidence of compliance with the provisions of this chapter shall be in the form of an agreement between the applicant, City, and monitoring agency completed prior to issuance of any project building permits. The terms and conditions of the agreement shall run with the land which is to be developed, shall be binding upon the successor in interest of the developer, and shall be recorded in the office of the Stanislaus County Recorder. The agreement shall include the following provisions:

1.

The developer shall give the City the continuing right-of-first-refusal to purchase or lease any or all of the designated units at the fair market value.

2.

The deeds to the designated units shall contain a covenant stating that the developer or his or her successor in interest shall not sell, rent, lease, sublet, assign or otherwise transfer any interest for same without the written approval of the City confirming that the sales price of the unit is consistent with the limits established for eligible households.

3.

The City shall have the authority to enter into other agreements with the developer or purchasers of the dwelling units, as may be necessary to assure that the required dwelling units are continuously occupied by eligible households.

4.

Nondiscrimination language shall be incorporated into each agreement to assure that equal housing opportunities are made available to all without regard to race, color, religion, sex, national origin, ancestry, marital status or physical handicap in accordance with State or federal law.

5.

The agreement shall be recorded as a deed restriction prior to issuance of any project building permits and shall run with the land encompassed by the project as provided in subsection A of this section.

C.

Affordable units in a project and phases of a project shall be constructed concurrently with or prior to the construction of nonrestricted units.

D.

Affordable units shall have an external appearance, bedroom mix and amenities representative of the entire housing development, and such units shall be dispersed throughout the project.

E.

The City may contract with the Stanislaus County Housing Authority or other similar entity to administer and monitor the rental and sales provisions of this chapter. The monitoring costs shall be paid by the project owner(s) in one lump sum for the term of the agreement. Said fee shall be paid prior to issuance of the final occupancy clearance. It will be the owner's responsibility to contact the monitoring agency regarding subsequent vacancies once a unit is available for rent or sale.

F.

The City Council, by resolution, may establish the amount of fees to be charged to applicants and/or project owners for administration of this chapter.

(Ord. No. 2020-1059, § 1, 3-23-2020)

A.

Those units targeted for very low-income households shall be affordable at a rent that does not exceed 30 percent of 50 percent of the Stanislaus County area median income, as published annually by the California Department of Housing and Community Development, and adjusted for household size. If the units are rented to Section 8 certificate holders, then the maximum rents for those units shall be as determined by the Stanislaus County Housing Authority.

B.

Those units targeted for lower-income households shall be affordable at a rent that does not exceed 30 percent of 60 percent of the Stanislaus County area median income, as published annually by the California Department of Housing and Community Development, and adjusted for household size. If the units are rented to Section 8 certificate holders, then the maximum rents for those units shall be as determined by the Stanislaus County Housing Authority.

C.

Those units targeted for moderate-income households shall be affordable at a rent that does not exceed 30 percent of 100 percent of the Stanislaus County area median income, as published annually by the California Department of Housing and Community Development, and adjusted for household size. If the units are rented to Section 8 certificate holders, then the maximum rents for those units shall be as determined by the Stanislaus County Housing Authority.

D.

Total move-in costs for affordable units shall be limited to the last month's rent plus a cleaning deposit not to exceed one month's rent.

E.

In calculating rents for senior citizen housing units, any services, such as meals or individual medical care, offered above those normally provided for independent living units, shall not be included in calculating maximum rents.

F.

If the affordable unit is rented at any time to persons not in the income category originally agreed upon, the property owner or applicant shall pay to the City the difference between the maximum rental fee allowed and that collected for each unit, for the term of noncompliance. Any forfeited monies shall be used for targeted-income housing programs within the City.

(Ord. No. 2020-1059, § 1, 3-23-2020)

A.

All purchasers of affordable units shall be first time homebuyers or senior citizens.

B.

The total mortgage payments of those units designated for very low- and low-income households shall not exceed the criteria specified for maximum rents in section 18.39.050 of this chapter. Total mortgage payments include principal, interest, taxes, and insurance.

C.

The total down payment, excluding closing costs, for the affordable units, shall not exceed ten percent of the purchase price.

D.

Purchasers shall be required to occupy the unit unless evidence is presented to the City that the owner is unable to continuously occupy the unit due to illness or incapacity. In such cases, the City may approve rental of the unit to the same household type as the owner.

E.

The owner of an affordable unit, on its sale or resale, shall sell the unit to a household in the same category (very low, low, or senior citizen).

F.

The sale and selling price of the affordable unit shall be controlled by the monitoring agency.

(Ord. No. 2020-1059, § 1, 3-23-2020)

Following are those persons who, by virtue of their position or relationship, are found to be ineligible to purchase or rent an affordable unit as their residence:

A.

All employees and officials of the City who have, by the authority of their position, policymaking authority or influence affecting City housing programs.

B.

The developer or project owner, or the relatives or employees of the developer, project owner or of any subcontractor or business associated with the developer's or project owner's operations.

(Ord. No. 2020-1059, § 1, 3-23-2020)

When an applicant proposes to construct a housing development that conforms to the requirements of California Government Code section 65915, subdivision (b), and includes a child care facility that will be located on the premises of, as part of, or adjacent to, the project, the City shall grant either of the following:

A.

An additional density bonus that is an amount of square feet of residential space that is equal to or greater than the amount of square feet in the child care facility.

B.

An additional concession or incentive that contributes significantly to the economic feasibility of the construction of the child care facility.

C.

The City shall require, as a condition of approving the housing development that the following occur:

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 density bonus units are required to remain affordable pursuant to California Government Code section 65915, subdivision (c).

2.

Of the children who attend the child care facility, the children of very low-income households, lower-income households, or families of moderate income shall equal a percentage that is equal to or greater than the percentage of dwelling units that are required for very low-income households, lower-income households, or families of moderate income pursuant to California Government Code section 65915, subdivision (b).

3.

Notwithstanding any requirement of California Government Code section 65915, the City shall not be required to provide a density bonus or concession for a child care facility if it finds, based upon substantial evidence, that the community has adequate child care facilities.

4.

"Child care facility," as used in this section, means a child day care facility other than a family day care home, including, but not limited to, infant centers, preschools, extended day care facilities, and school-age child care centers.

(Ord. No. 2020-1059, § 1, 3-23-2020)