BONUSES
The purpose of this article is to implement State law requirements under California Government Code Sections 65915 through 65918, as they may be amended from time to time, or the current equivalent, to encourage the development of residential development that offers a percentage of its units to be made available to families of low or moderate income. (Ord. #271-2025, S2 (Exh. A))
Pursuant to Government Code Sections 65915 and 65917, the City must grant to an applicant of a qualifying housing development who seeks a density bonus (“developer”) either (a) a density bonus or (b) a density bonus with an additional incentive(s) as set forth in this article. A density bonus housing agreement shall be made a condition of any density bonus approved pursuant to this section. The agreement shall be recorded as a covenant on the property on which the designated affordable dwelling units will be constructed, which covenant shall run with the land. (Ord. #271-2025, S2 (Exh. A))
The following are eligibility requirements for a density bonus, incentives or concessions applicable to this article:
a. Affordability. A developer entering into a density bonus agreement to construct a housing development may qualify for a density bonus as provided under Government Code Section 65915. Government Code Section 65915.5 shall govern the availability of bonus incentives for projects which convert apartments to condominium projects which include at least thirty-three (33%) percent of the total units of the proposed condominium project to persons and families of low or moderate income as defined in Section 50093 of the Health and Safety Code or fifteen (15%) percent of the total units to lower income households as defined in Section 50079.5 of the Health and Safety Code.
b. Allowed Density Bonus. Qualifying developments are eligible for a density bonus and one (1) or more additional incentives or concessions as follows:
1. Low-Income Households. A housing development eligible for a bonus in compliance with criteria of subsection (a) of this section (ten (10%) percent for lower income households) shall be entitled to a density bonus calculated pursuant to Government Code Section 65915(f)(1).
2. Very Low-Income Households. A housing development eligible for a bonus in compliance with criteria of subsection (a) of this section (five (5%) percent for very low-income households) shall be entitled to a density bonus calculated pursuant to Government Code Section 65915(f)(2).
3. Senior Citizen Development. A housing development eligible for a bonus in compliance with criteria of subsection (a) of this section (senior citizen development or mobile home park) shall be entitled to a density bonus calculated pursuant to Government Code Section 65915(f)(3).
4. Common Interest Development. A housing development in compliance with criteria of subsection (a) of this section (ten (10%) percent for moderate income households) shall be entitled to a density bonus calculated pursuant to Government Code Section 65915(f)(4).
5. Density Bonus for Land Donation. When an applicant for a tentative subdivision map, parcel map or other residential development approval donates land to the City, the maximum allowable residential development shall be as set forth under the applicable zoning ordinance and Clearlake General Plan, as permitted by Government Code 65915(g)(1). This increase shall be in addition to any other density bonus. The applicant shall meet the conditions in Government Code Section 65915(g) in order to qualify for the additional development.
6. Density Bonus for Housing With Child Care Facilities. The City shall grant a housing development that includes a child care facility in compliance with Government Code Section 65915(h).
7. Any additional qualifying density bonus, incentive, or concession allowable under Government Code Section 65915 as amended from time to time.
c. Development Standards. Projects qualifying under this section shall comply with the following development standards:
1. Designated affordable units shall be reasonably dispersed throughout the project where feasible, shall contain on average the same number of bedrooms as the nondesignated units in the project and shall be compatible with the design or use of the remaining units in terms of appearance, materials and finished quality.
2. If the project is phased, the density bonus units shall be phased in the same proportion as the non-density bonus units or phased in another sequence acceptable to the City. (Ord. #271-2025, S2 (Exh. A))
At the time of adoption of the density bonus ordinance codified in this article, the City does not have an inclusionary housing policy in place. However, if an inclusionary housing policy is adopted, designated affordable units shall count towards the requirements of the City’s inclusionary housing requirements. (Ord. #271-2025, S2 (Exh. A))
The following are allowed incentives or concessions that can be made for projects qualifying under this article:
a. Applicant Request and City Approval. An applicant for a density bonus may submit to the City a proposal for the specific incentives or concessions listed that the applicant requests and may request a meeting with the City staff prior to submitting the development application. The City Council shall grant an incentive or concession request that complies with the requirements of this article and State law, unless the City Council makes in writing, based on substantial evidence, the findings established in Government Code Sections 65915(d)(1)(A), 65915(d)(1)(B) or 65915(d)(1)(C).
b. Number of Incentives. The applicant shall receive other concessions or incentives, as listed in subsection (c) of this section, which significantly contribute to the economic feasibility of construction or the qualifying development project. The number of concessions or incentives will be determined by Government Code Section 65915(d)(2).
c. Types of Incentives. For the purposes of this section, bonus concessions or incentives which the City may provide include, but are not limited to, any of the following, as established in Government Code Section 65915(k).
1. A reduction in site development standards or a modification of Zoning Code requirements or architectural design requirements that exceed the minimum State of California Building Standards pursuant to California Government Code Section 65915(k);
2. A modification of zoning ordinance requirements or design standards requirements that results in identifiable financially sufficient and actual cost reductions that exceed the minimum State of California Building Standards pursuant to California Government Code Section 65915(k), 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;
3. 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
4. Any other incentive or concession proposed by the developer or the City that results in identifiable, financially sufficient and actual cost reductions. (Ord. #271-2025, S2 (Exh. A))
The following is required for processing a bonus request:
a. Permit Requirement. A request for a density bonus and other incentives and concessions shall be evaluated and decided through the permit process as though it were a use permit application through the Planning Commission and then recommended to the City Council for approval.
b. Findings for Approval. The approval of a density bonus and other incentives and concessions shall require that the review authority first make all the following findings:
1. The residential development will be consistent with the General Plan.
2. The approved number of dwellings can be accommodated by existing and planned infrastructure capacities.
3. Adequate evidence exists to indicate that the project will provide affordable housing in a manner consistent with the purpose and intent of this article.
4. There are sufficient provisions to guarantee that the units will remain affordable for the required time period. (Ord. #271-2025, S2 (Exh. A))
The following is required for a density bonus agreement:
a. Agreement Required and Provisions. An applicant requesting a density bonus agreement shall agree to enter into a recordable density bonus agreement (“agreement”) with the City in a form approved by the City Attorney. The executed agreement shall be recorded on the property designated for the construction of the designated affordable 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 properties.
b. Project Information. The agreement shall include at least the following information about the project:
1. The total number of units approved for the housing development, including the number of designated affordable units.
2. A description of the household income group to be accommodated by the housing development and the standards and methodology for determining the corresponding affordable rent or affordable sales price and housing cost consistent with U.S. Department of Housing and Urban Development (“HUD”) Guidelines.
3. The marketing plan for the affordable units.
4. The location, unit sizes (square feet) and number of bedrooms of the designated affordable dwelling units.
5. Tenure of the use restrictions for designated affordable dwelling units of the time periods required by this section and Government Code Section 65915.
6. A schedule for completion and occupancy of the designated affordable dwelling units.
7. A description of the additional incentives being provided by the City.
8. A description of the remedies for breach of the agreement by the owners.
9. Other provisions to ensure successful implementation and compliance with this article and Government Code Section 65915.
c. Minimum Requirements. The agreement shall provide, at a minimum, that:
1. The developer shall give the City the continuing right of first refusal to lease or purchase any or all the designated affordable dwelling units at the appraised value.
2. The deeds to the designated affordable dwelling units shall contain a covenant stating that the developer or successors-in-interest shall not assign, lease, rent, sell, sublet or otherwise transfer any interest for designated affordable dwelling units without the written approval of the City.
3. When providing the written approval, the City shall confirm that the price (rent or sale) of the designated affordable dwelling unit is consistent with the limits established for low- and very low-income households, as published by HUD.
4. The City shall have the authority to enter into other agreements with the developer or purchasers of the designated affordable dwelling units, to ensure that the required dwelling units are continuously occupied by eligible households.
5. Applicable deed restrictions, in the form satisfactory to the City Attorney, shall contain provisions for the enforcement of owner or developer compliance. Any default or failure to comply may result in foreclosure, specific performance or withdrawal of the certificate of occupancy.
6. In any action taken to enforce compliance with deed restrictions, the City Attorney may take all action allowed by law to recover all of the City’s costs of action including legal services and reasonable attorney’s fees.
7. Compliance with the agreement will be monitored and enforced in compliance with the measures included in the agreement.
8. The designated affordable dwelling units that qualified the housing development for a density bonus and other incentives and concessions shall continue to be available as affordable units in compliance with the requirements of Government Code Section 65915(c).
d. For-Sale Housing Conditions. In the case of for-sale housing developments, the agreement shall provide for the following conditions governing the initial sale and use of designated affordable dwelling units during the applicable restriction period:
1. A requirement that designated affordable dwelling units shall be owner-occupied by eligible households or by qualified residents in the case of senior housing.
2. Provisions as the City may require ensuring continued compliance with maintaining affordable dwelling units in compliance with this article and State law.
3. Terms for future sales and recapture of any equity to ensure continued affordability of dwelling units for the requisite time period, as prescribed by Government Code Section 65915(c).
e. Rental Housing Conditions. In the case of rental housing development, the agreement shall provide for the following conditions governing the use of designated affordable dwelling units during the restriction period:
1. The rules and procedures for qualifying tenants, establishing affordable rent, filling vacancies and maintaining the designated affordable dwelling units for qualified tenants.
2. Provisions requiring owners to annually verify to the City tenant incomes and maintain books and records to demonstrate compliance with this article.
3. Provisions requiring owners to submit an annual report to the City, which includes the name, address and income of each person occupying the designated affordable dwelling units and which identifies the bedroom size and monthly rent or cost of each unit.
4. The applicable use restriction shall comply with the time limits for continued availability in compliance with this article.
f. Execution of Agreement. Following City Council approval of the agreement and execution of the agreement by all parties, the City shall record the completed agreement on the parcels designated for the construction of designated affordable dwelling units at the County Recorder’s Office.
g. The approval and recordation shall take place at the same time as the final map or, where a map is not being processed, before issuance of building permits for the project.
h. The agreement shall be binding on all future owners, developers and/or successors-in-interest. (Ord. #271-2025, S2 (Exh. A))
BONUSES
The purpose of this article is to implement State law requirements under California Government Code Sections 65915 through 65918, as they may be amended from time to time, or the current equivalent, to encourage the development of residential development that offers a percentage of its units to be made available to families of low or moderate income. (Ord. #271-2025, S2 (Exh. A))
Pursuant to Government Code Sections 65915 and 65917, the City must grant to an applicant of a qualifying housing development who seeks a density bonus (“developer”) either (a) a density bonus or (b) a density bonus with an additional incentive(s) as set forth in this article. A density bonus housing agreement shall be made a condition of any density bonus approved pursuant to this section. The agreement shall be recorded as a covenant on the property on which the designated affordable dwelling units will be constructed, which covenant shall run with the land. (Ord. #271-2025, S2 (Exh. A))
The following are eligibility requirements for a density bonus, incentives or concessions applicable to this article:
a. Affordability. A developer entering into a density bonus agreement to construct a housing development may qualify for a density bonus as provided under Government Code Section 65915. Government Code Section 65915.5 shall govern the availability of bonus incentives for projects which convert apartments to condominium projects which include at least thirty-three (33%) percent of the total units of the proposed condominium project to persons and families of low or moderate income as defined in Section 50093 of the Health and Safety Code or fifteen (15%) percent of the total units to lower income households as defined in Section 50079.5 of the Health and Safety Code.
b. Allowed Density Bonus. Qualifying developments are eligible for a density bonus and one (1) or more additional incentives or concessions as follows:
1. Low-Income Households. A housing development eligible for a bonus in compliance with criteria of subsection (a) of this section (ten (10%) percent for lower income households) shall be entitled to a density bonus calculated pursuant to Government Code Section 65915(f)(1).
2. Very Low-Income Households. A housing development eligible for a bonus in compliance with criteria of subsection (a) of this section (five (5%) percent for very low-income households) shall be entitled to a density bonus calculated pursuant to Government Code Section 65915(f)(2).
3. Senior Citizen Development. A housing development eligible for a bonus in compliance with criteria of subsection (a) of this section (senior citizen development or mobile home park) shall be entitled to a density bonus calculated pursuant to Government Code Section 65915(f)(3).
4. Common Interest Development. A housing development in compliance with criteria of subsection (a) of this section (ten (10%) percent for moderate income households) shall be entitled to a density bonus calculated pursuant to Government Code Section 65915(f)(4).
5. Density Bonus for Land Donation. When an applicant for a tentative subdivision map, parcel map or other residential development approval donates land to the City, the maximum allowable residential development shall be as set forth under the applicable zoning ordinance and Clearlake General Plan, as permitted by Government Code 65915(g)(1). This increase shall be in addition to any other density bonus. The applicant shall meet the conditions in Government Code Section 65915(g) in order to qualify for the additional development.
6. Density Bonus for Housing With Child Care Facilities. The City shall grant a housing development that includes a child care facility in compliance with Government Code Section 65915(h).
7. Any additional qualifying density bonus, incentive, or concession allowable under Government Code Section 65915 as amended from time to time.
c. Development Standards. Projects qualifying under this section shall comply with the following development standards:
1. Designated affordable units shall be reasonably dispersed throughout the project where feasible, shall contain on average the same number of bedrooms as the nondesignated units in the project and shall be compatible with the design or use of the remaining units in terms of appearance, materials and finished quality.
2. If the project is phased, the density bonus units shall be phased in the same proportion as the non-density bonus units or phased in another sequence acceptable to the City. (Ord. #271-2025, S2 (Exh. A))
At the time of adoption of the density bonus ordinance codified in this article, the City does not have an inclusionary housing policy in place. However, if an inclusionary housing policy is adopted, designated affordable units shall count towards the requirements of the City’s inclusionary housing requirements. (Ord. #271-2025, S2 (Exh. A))
The following are allowed incentives or concessions that can be made for projects qualifying under this article:
a. Applicant Request and City Approval. An applicant for a density bonus may submit to the City a proposal for the specific incentives or concessions listed that the applicant requests and may request a meeting with the City staff prior to submitting the development application. The City Council shall grant an incentive or concession request that complies with the requirements of this article and State law, unless the City Council makes in writing, based on substantial evidence, the findings established in Government Code Sections 65915(d)(1)(A), 65915(d)(1)(B) or 65915(d)(1)(C).
b. Number of Incentives. The applicant shall receive other concessions or incentives, as listed in subsection (c) of this section, which significantly contribute to the economic feasibility of construction or the qualifying development project. The number of concessions or incentives will be determined by Government Code Section 65915(d)(2).
c. Types of Incentives. For the purposes of this section, bonus concessions or incentives which the City may provide include, but are not limited to, any of the following, as established in Government Code Section 65915(k).
1. A reduction in site development standards or a modification of Zoning Code requirements or architectural design requirements that exceed the minimum State of California Building Standards pursuant to California Government Code Section 65915(k);
2. A modification of zoning ordinance requirements or design standards requirements that results in identifiable financially sufficient and actual cost reductions that exceed the minimum State of California Building Standards pursuant to California Government Code Section 65915(k), 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;
3. 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
4. Any other incentive or concession proposed by the developer or the City that results in identifiable, financially sufficient and actual cost reductions. (Ord. #271-2025, S2 (Exh. A))
The following is required for processing a bonus request:
a. Permit Requirement. A request for a density bonus and other incentives and concessions shall be evaluated and decided through the permit process as though it were a use permit application through the Planning Commission and then recommended to the City Council for approval.
b. Findings for Approval. The approval of a density bonus and other incentives and concessions shall require that the review authority first make all the following findings:
1. The residential development will be consistent with the General Plan.
2. The approved number of dwellings can be accommodated by existing and planned infrastructure capacities.
3. Adequate evidence exists to indicate that the project will provide affordable housing in a manner consistent with the purpose and intent of this article.
4. There are sufficient provisions to guarantee that the units will remain affordable for the required time period. (Ord. #271-2025, S2 (Exh. A))
The following is required for a density bonus agreement:
a. Agreement Required and Provisions. An applicant requesting a density bonus agreement shall agree to enter into a recordable density bonus agreement (“agreement”) with the City in a form approved by the City Attorney. The executed agreement shall be recorded on the property designated for the construction of the designated affordable 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 properties.
b. Project Information. The agreement shall include at least the following information about the project:
1. The total number of units approved for the housing development, including the number of designated affordable units.
2. A description of the household income group to be accommodated by the housing development and the standards and methodology for determining the corresponding affordable rent or affordable sales price and housing cost consistent with U.S. Department of Housing and Urban Development (“HUD”) Guidelines.
3. The marketing plan for the affordable units.
4. The location, unit sizes (square feet) and number of bedrooms of the designated affordable dwelling units.
5. Tenure of the use restrictions for designated affordable dwelling units of the time periods required by this section and Government Code Section 65915.
6. A schedule for completion and occupancy of the designated affordable dwelling units.
7. A description of the additional incentives being provided by the City.
8. A description of the remedies for breach of the agreement by the owners.
9. Other provisions to ensure successful implementation and compliance with this article and Government Code Section 65915.
c. Minimum Requirements. The agreement shall provide, at a minimum, that:
1. The developer shall give the City the continuing right of first refusal to lease or purchase any or all the designated affordable dwelling units at the appraised value.
2. The deeds to the designated affordable dwelling units shall contain a covenant stating that the developer or successors-in-interest shall not assign, lease, rent, sell, sublet or otherwise transfer any interest for designated affordable dwelling units without the written approval of the City.
3. When providing the written approval, the City shall confirm that the price (rent or sale) of the designated affordable dwelling unit is consistent with the limits established for low- and very low-income households, as published by HUD.
4. The City shall have the authority to enter into other agreements with the developer or purchasers of the designated affordable dwelling units, to ensure that the required dwelling units are continuously occupied by eligible households.
5. Applicable deed restrictions, in the form satisfactory to the City Attorney, shall contain provisions for the enforcement of owner or developer compliance. Any default or failure to comply may result in foreclosure, specific performance or withdrawal of the certificate of occupancy.
6. In any action taken to enforce compliance with deed restrictions, the City Attorney may take all action allowed by law to recover all of the City’s costs of action including legal services and reasonable attorney’s fees.
7. Compliance with the agreement will be monitored and enforced in compliance with the measures included in the agreement.
8. The designated affordable dwelling units that qualified the housing development for a density bonus and other incentives and concessions shall continue to be available as affordable units in compliance with the requirements of Government Code Section 65915(c).
d. For-Sale Housing Conditions. In the case of for-sale housing developments, the agreement shall provide for the following conditions governing the initial sale and use of designated affordable dwelling units during the applicable restriction period:
1. A requirement that designated affordable dwelling units shall be owner-occupied by eligible households or by qualified residents in the case of senior housing.
2. Provisions as the City may require ensuring continued compliance with maintaining affordable dwelling units in compliance with this article and State law.
3. Terms for future sales and recapture of any equity to ensure continued affordability of dwelling units for the requisite time period, as prescribed by Government Code Section 65915(c).
e. Rental Housing Conditions. In the case of rental housing development, the agreement shall provide for the following conditions governing the use of designated affordable dwelling units during the restriction period:
1. The rules and procedures for qualifying tenants, establishing affordable rent, filling vacancies and maintaining the designated affordable dwelling units for qualified tenants.
2. Provisions requiring owners to annually verify to the City tenant incomes and maintain books and records to demonstrate compliance with this article.
3. Provisions requiring owners to submit an annual report to the City, which includes the name, address and income of each person occupying the designated affordable dwelling units and which identifies the bedroom size and monthly rent or cost of each unit.
4. The applicable use restriction shall comply with the time limits for continued availability in compliance with this article.
f. Execution of Agreement. Following City Council approval of the agreement and execution of the agreement by all parties, the City shall record the completed agreement on the parcels designated for the construction of designated affordable dwelling units at the County Recorder’s Office.
g. The approval and recordation shall take place at the same time as the final map or, where a map is not being processed, before issuance of building permits for the project.
h. The agreement shall be binding on all future owners, developers and/or successors-in-interest. (Ord. #271-2025, S2 (Exh. A))