When an applicant seeks a density bonus, incentive, or concession for a housing development, the City will comply with the requirements of Government Code sections 65915-65918, as may be amended.

(Ord. 2020-006, § 17, 2020)

The following definitions shall apply to this chapter:

A.

"Department" means the development services department.

B.

"Director" means the director of development services.

C.

"Qualifying units" means the units that allow an applicant to qualify for a density bonus, incentive, or concession.

(Ord. 2020-006, § 17, 2020)

A.

Application. A developer seeking a density bonus, incentive, or concession shall file an application with the department. The form and content of the application shall be as specified by the director and shall be subject to a fee established by resolution of the city council. The department will process the application concurrently with any other applications required for the housing development. The department will provide a list of all documents and information required to be submitted with the density bonus application in order for the density bonus application to be deemed complete, and will notify the applicant whether the application is complete in a manner consistent with the timelines in Government Code section 65943.

B.

Supporting documentation. An applicant for a density bonus, incentive, or concession shall provide the city with reasonable documentation to establish eligibility for the requested density bonus, incentive, or concession, as determined by the director. The applicant may also provide analysis, using one of the following methodologies, demonstrating that the density bonus, incentive, or concession will make the qualifying units economically feasible:

1.

A development pro forma with the capital costs, operating expenses, return on investment, loan-to-value ratio, and the debt coverage ratio, including the contributions provided by any applicable subsidy programs, and the economic effect created by the minimum fifty-five-year use and income restrictions on the affordable housing units.

2.

An appraisal report indicating the value of the density bonus and of the incentives or concessions.

3.

A use of funds statement identifying the projected financing gap for the project with the affordable housing units. The analysis shall show how much of the funding gap is covered by the density bonus and how much by the incentives/concessions.

C.

Hearing process. Applications for a density bonus, incentive, or concession will considered by the planning commission. The planning commission and city council shall be authorized to approve development incentives as follows:

1.

The planning commission shall be authorized to approve development incentives that include the modification of site development standards, or the modification of zoning or architectural design requirements.

2.

Approval by the city council shall be required for all other development incentives.

(Ord. 2020-006, § 17, 2020)

As a condition for the approval of a density bonus and additional incentive or incentives pursuant to this chapter, the applicant shall agree to enter into a density bonus agreement with the city in a form approved by the city attorney and consistent with the requirements of Government Code section 65915 and other applicable state law. The city manager is authorized to execute the density bonus agreement on behalf of the city. The executed density bonus agreement shall be recorded on the parcel or parcels designated for the construction of qualifying units, or donated for the purpose of constructing qualifying units. The approval and recordation shall occur prior to final map approval or, where a map is not being processed, prior to the issuance of building permits for the parcels or units. The density bonus agreement shall be binding upon all future owners and successors in interest.

(Ord. 2020-006, § 17, 2020)

All qualifying units shall meet the following requirements:

A.

Concurrency. Qualifying units shall be built concurrently with all other units in the development unless the city and the applicant agree in writing to an alternative schedule for development.

B.

Location. Qualifying units shall be built on-site wherever possible and, where practical, shall be dispersed within the housing development.

C.

Unit size. Where feasible, the number of bedrooms of the qualifying units shall be equivalent to the bedroom mix of the other units in the development, except that the developer may include a higher proportion of qualifying units with more bedrooms.

D.

Design. The design and appearance of the qualifying units shall be compatible with the design of the housing development as a whole.

E.

Linked sites. Circumstances may arise in which the public interest would be served by allowing some or all of the qualifying units associated with one housing development to be produced and operated at an alternative development site. If the developer and the city agree in writing to allow the production and operation of qualifying units at an alternative site, the resulting linked developments shall be considered a single housing development for the purposes of this chapter.

(Ord. 2020-006, § 17, 2020)