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Corona City Zoning Code

CHAPTER 17

87 DENSITY BONUS AGREEMENTS AND DEVELOPMENT AGREEMENTS

17.87.010 Purpose and authority.

   (A)   Purpose. The purpose of this chapter is to establish procedures for the implementation of California Government Code §§ 65915 through 65918 ("state density bonus law"). Density bonus housing agreements are intended to increase the city's supply of affordable housing by providing a density bonus above that permitted by zoning regulations or the General Plan for a housing development, in exchange for reserving a designated percentage of units for low, very low and moderate income households or qualifying residents as defined herein.
   (B)   Incorporation of state law amendments. This chapter implements the state density bonus law. If any provisions of the state density bonus law are amended, those amended provisions shall be automatically incorporated into this chapter. Should any inconsistencies exist between the amended state density bonus law and the provisions set forth in this chapter, the state density bonus law shall prevail.
   (C)   Interpretation. This chapter is to be construed and applied in a manner that avoids conflicts with other applicable laws, including the state density bonus law and any other applicable provisions of state law. No provision of this chapter shall be applied if it would result in a violation of state or federal law.
(`78 Code, § 17.87.010.) (Ord. 3391 § 5, 2024; Ord. 2140 § 1 (part), 1992.)

17.87.020 Definitions.

   Unless the particular provision of the context otherwise requires, the definitions and provisions contained in this section shall govern the construction, meaning and application of words and phrases used in this chapter. Unless the context otherwise clearly indicates, words used in the singular include the plural and words used in the plural includes the singular.
   (A)   "Affordable housing cost" has the same meaning as in California Health and Safety Code § 50052.5, as presently adopted or as may be amended or superseded.
   (B)   "Affordable rent" has the same meaning as in California Health and Safety Code § 50053, as presently adopted or as may be amended or superseded.
   (C)   "Affordable unit" means a dwelling unit within a housing development, which will be reserved for sale, at an affordable housing cost, or rent, at an affordable rent, to a lower income household, a very low income household, a moderate income household, or a qualifying resident pursuant to the requirements of this chapter and the state density bonus law.
   (D)   "Density bonus" has the same meaning as in California Government Code § 65915(f), as presently adopted or as may be amended or superseded.
   (E)   "Density bonus housing agreement" means a legally binding agreement between an applicant for a housing development and the city to ensure that the requirements of this chapter are satisfied. The agreement, among other things, shall establish the number of affordable units, their size, location, terms and conditions of affordability, and production schedule.
   (F)   "Director" means the Planning and Development Director for the City of Corona, or his or her designee.
   (G)   "Housing development" has the same meaning as in California Government Code § 65915(i), as presently adopted or as may be amended or superseded.
   (H)   "Lower income households" has the same meaning as in California Health and Safety Code § 50079.5, as presently adopted or as may be amended or superseded.
   (I)   "Low income households, Very" has the same meaning as defined California Health and Safety Code § 50105, as presently adopted or as may be amended or superseded.
   (J)   "Maximum allowable residential density" has the same meaning as in California Government Code § 65915(o)(6), as presently adopted or as may be amended or superseded.
   (K)   "Moderate income households" has the same meaning as in California Health and Safety Code § 50093, as presently adopted or as may be amended or superseded.
   (L)   "Qualifying resident" means a person of 55 years of age or older in a senior citizen housing development and includes other persons eligible to reside in a senior citizen housing development, as defined in California Civil Code § 51.3.
   (M)   "Qualifying owner" means a person within a low, very low or moderate income household who is eligible to occupy an affordable unit within a housing development that is offered for sale.
   (N)   "Qualifying tenant" means a person within a low, very low or moderate income household who is eligible to occupy an affordable unit within a housing development that is offered for rent, and includes a qualifying resident in a senior citizen housing development.
   (O)   "Senior citizen housing development" has the same meaning as in California Civil Code § 51.3(b)(4).
   (P)   "Term of affordability" means the time period specified in § 17.87.060(B).
(Ord. 3391 § 5, 2024.)

17.87.030 Application requirements.

   A housing development or senior citizen housing development that is eligible for a density bonus pursuant to this chapter and the state density bonus law is subject to the following application procedures:
   (A)   Development plan review. An applicant shall submit a Development Plan Review application according to the requirements in Chapter 17.102 to the City's Planning and Development Department prior to the submittal of any formal application. In addition to the requirements listed in § 17.102.030, the applicant shall provide a narrative description of the housing development or senior citizen housing development, which shall include the following information:
      (1)   The general scope of the proposed project;
      (2)   The zoning and general plan designation of the property;
      (3)   The assessor's parcel numbers of the project site;
      (4)   The maximum allowable residential density for the property, taking into consideration the site constraints and proposed housing product type;
      (5)   The total number of units, affordable units, and density bonus units proposed;
      (6)   The concessions and incentives, waivers and reductions and reduced parking standards requested.
   (B)   Housing development applications. Within 21 working days of receipt of the Development Plan Review application, the Director and other city staff shall conduct a review of the application. Within 20 working days after the review, the city shall provide to the applicant a letter summarizing the requirements and recommendations of staff and identifying the formal applications that the applicant will be required to submit for the housing development project. The application for a density bonus shall follow the review process and shall be considered concurrently with any other discretionary or ministerial entitlement applications required for the housing development, which shall be processed the requirements provided in this code for such other applications.
(Ord. 3391 § 5, 2024.)

17.87.040 General requirements.

   (A)   Construction of affordable units. Affordable units in a housing development and phases of a housing development shall be constructed concurrently with or prior to the construction of any market rate units.
   (B)   Priority for Corona residents and employees. First priority for affordable units shall be given to eligible persons and families who reside, work, go to school or have family in the City of Corona.
   (C)   Distribution of affordable units. Affordable units shall be dispersed throughout the housing development. The number of bedrooms in the affordable units shall be no less than the bedroom mix of the market rate units of the housing development. The design and appearance of the affordable units shall be comparable to the market rate units.
(Ord. 3391 § 5, 2024.)

17.87.050 Fees.

   The application for a density bonus shall be accompanied by a filing fee as established by resolution of the City Council.
(`78 Code, § 17.87.030.) (Ord. 3391 § 5, 2024.)

17.87.060 Density bonus housing agreement.

   The applicant requesting a density bonus under this chapter shall agree to construct operate and maintain the affordable units for lower and very low income households in accordance with a density bonus housing agreement with the city that is in a form acceptable to the Director and the City Attorney. The density bonus housing agreement shall include, but is not limited to, the following:
   (A)   Identification of affordable units. Affordable units shall be identified by address and legal description, type (floor area, number of bedrooms/baths, unit size, etc.), and designated household income category. The density bonus housing agreement shall also identify the total number of affordable units and the total number of units approved for the housing development.
   (B)   Term of affordability. The term of affordability for each affordable unit shall begin on the date a certificate of occupancy is issued for the affordable unit.
      (l)   Rental units. Rental affordable units shall be available only to qualifying tenants at an affordable rent for a minimum of 55 years or a longer period of time if required by the construction or mortgage financing assistance program, or mortgage insurance program or rental subsidy program.
      (2)   For sale units. For sale affordable units shall be available only to qualifying owners at an affordable housing cost for a minimum of 45 years.
   (C)   Density bonus housing agreement.
      (1)   Rental affordable units. For rental affordable units, the density bonus housing agreement shall include the following conditions governing the use of the affordable units during the term of affordability:
         (a)   Qualification of tenants. The rules and procedures for determining and verifying if a tenant qualifies as a qualifying tenant, establishing affordable rent, filling vacancies, and maintaining the affordable units for qualifying tenants.
         (b)   Maintenance of records. Provisions requiring a monitoring program to verify tenant incomes and the maintenance of books and records to demonstrate compliance with this chapter.
         (c)   Annual report. Provisions requiring submittal of an annual report in March of each calendar year to the Director, which includes the name, address and income of each qualifying tenant occupying each affordable unit, and which identifies the bedroom count and monthly rent of each affordable unit. The report shall be filed on a form designed by the Director and shall include the number of units, the annual income of the qualifying tenants in those units and the rental amount for each affordable unit. Failure to file such a report shall amount to a default under the density bonus housing agreement.
         (d)   Determination of rent. A maximum rent schedule shall be submitted to the Director prior to the issuance of a certificate of occupancy for any rental affordable units, and shall be updated annually on the anniversary date of occupancy of the affordable unit.
         (e)   Deposit amount. Total move-in costs for qualifying tenants shall be limited to first month's rent plus a security/cleaning deposit not to exceed one month's rent.
         (f)   Upward mobility allowance. When a qualifying tenant occupying an affordable unit no longer qualifies under the income requirements, verified through the monitoring program required as part of the density bonus housing agreement, that tenant may then be charged market rate rent. If this occurs, any currently vacant unit of similar type to the affordable unit in question shall then be designated as an affordable unit, and the owner shall immediately attempt to secure tenants in accordance with this chapter. The owner is required to maintain at all times during the term of affordability the minimum number of affordable units identified in the density bonus housing agreement.
         (g)   Subletting of affordable units. Subletting of designated affordable units shall be prohibited.
         (h)   Monitoring program. A monitoring program shall be required, specifying the party responsible for certifying qualifying tenant incomes and affordable rent, maintaining the required number of affordable units, and marketing and filling unit vacancies.
      (2)   For-sale affordable units. In the case of for-sale affordable units, the density bonus housing agreement shall include the following conditions governing the sale and use of affordable units during the term of affordability:
         (a)   Affordable units shall, upon initial sale and any resale, be sold only to qualifying owners, or to qualifying residents in the case of a for sale senior citizen housing development.
         (b)   Upon initial sale and any resale, affordable units shall be sold at an affordable housing cost.
         (c)   The purchaser of each affordable unit shall execute a covenant or agreement approved by the city restricting the sale of the affordable unit in accordance with this chapter during the applicable term of affordability. Such covenant or agreement shall be recorded against the parcel containing the affordable unit and shall contain such provisions as the city may require to ensure continued compliance with this chapter and the state density bonus law.
         (d)   Sale clause. The density bonus housing agreement shall stipulate that, when the term of affordability has expired on an affordable unit, the city and/or a non-profit housing organization shall have a first right of purchase option 60 days prior to the affordable unit being advertised on the market.
         (e)   Rental of for-sale units. Rental of for-sale affordable units shall be prohibited unless the proposed renter(s) qualify as qualifying tenants.
   (D)   Remedies. The density bonus housing agreement shall include a description of remedies for breach of the density bonus housing agreement by either party (the city may identify qualifying tenants or qualifying owners as third party beneficiaries under the agreement). Recovery of public costs of default shall be provided for in all density bonus housing agreements. For rental affordable units, default shall result in assessment for repayment of all rent revenues from the affordable units that were designated as affordable units for at least the prior three years or for the life of the density bonus housing agreement, whichever is shorter. The density bonus housing agreement shall set forth the repayment period upon default. The repayment may occur over a reasonable period of time but not to exceed the time elapsed under the density bonus housing agreement prior to the default.
   (E)   Incentives and concessions. The density bonus housing agreement shall include a description of the incentives and/or concessions, if any, approved by the city.
   (F)   Schedule. The density bonus housing agreement shall include a schedule for completion and occupancy of the affordable units.
   (G)   Other provisions. The density bonus housing agreement may include such other provisions required by the Director and the City Attorney to ensure implementation and compliance with this chapter.
   (H)   Expiration of density bonus. An approved density bonus application shall be utilized within the time specified in the density bonus housing agreement or within the time limit that applies to any other discretionary or ministerial entitlement application required for the housing development, whichever is longer. If the approved density bonus application is not utilized within such time period, it shall become null and void and of no effect except, where an application requesting an extension is filed prior to the expiration date, which extension may be approved by the Director upon a finding of unavoidable delay.
(Ord. 3391 § 5, 2024.)

17.87.070 Review of density bonus housing agreement.

   Once the density bonus housing agreement is in the correct form as to content and language, and reviewed and accepted by the applicant, the proposed agreement shall be scheduled for public hearing by the Planning and Housing Commission at the same time as any other discretionary or ministerial entitlement application required for the housing development. The Planning and Housing Commission shall make a recommendation on the density bonus housing agreement to the City Council.
(Ord. 3391 § 5, 2024.)

17.87.080 Decision by City Council.

   The City Council shall approve the density bonus housing agreement at a regularly scheduled public meeting ifit finds that the agreement complies with this chapter and the state density bonus law.
(`78 Code, § 17.87.070.) (Ord. 3391 § 5, 2024.)

17.87.090 Recordation.

   The City Clerk shall, within ten days of City Council approval cause the notarized density bonus housing agreement to be recorded in the Official Records of the County of Riverside on the parcel or parcels designated for construction of the affordable units and shall provide a copy to the Director. The density bonus housing agreement shall be binding upon all future owners and successors in interest.
(`78 Code, § 17.87.080.) (Ord. 3391 § 5, 2024.)

17.87.100 Violations.

   It shall be unlawful for any person to violate any provision, or to fail to comply with the requirements, of this chapter or any rule, policy or regulation adopted hereunder or any term, condition or provision set forth in a density bonus housing agreement to which that person is a party. Violations of any of the provisions or failing to comply with any of the mandatory requirements of this chapter, any rule, policy or regulation adopted hereunder, or any term, condition or provision set forth in a density bonus housing agreement may be enforced pursuant to the provisions of Chapter 1.08 of this code. Each day that a violation continues is deemed to be a new and separate offense. No proof of knowledge, intent, or other mental state is required to establish a violation.
(Ord. 3391 § 5, 2024.)

17.87.210 Purpose and authority.

   (A)   The intent of this chapter is to establish procedures for the processing of development agreements pursuant to the California Government Code.
   (B)   Development agreements are intended to strengthen the public planning process, to encourage private participation in comprehensive planning and to reduce the economic costs of development by providing earlier vesting than otherwise available under California law. Development agreements are within the total discretion of the city.
(`78 Code, § 17.87.210.) (Ord. 3391 § 5, 2024; Ord. 2140 § 1 (part), 1992.)

17.87.220 Application.

   The application for a development agreement shall be filed on a form as designated by the Director and shall include payment of the required fees to establish a deposit account with the city. The proposed agreement shall be based on the city standard form and shall include adequate consideration to the city. The application shall include submittal of a proposed draft agreement and all related materials designated on the application form, including environmental review.
(`78 Code, § 17.87.220.) (Ord. 3391 § 5, 2024; Ord. 2140 § 1 (part), 1992.)

17.87.230 Fees.

   The application for a development agreement shall be accompanied by a filing fee as established by City Council resolution pursuant to state law.
(`78 Code, § 17.87.230.) (Ord. 3391 § 5, 2024; Ord. 2140 § 1 (part), 1992.)

17.87.240 Qualification as an applicant.

   Only a qualified applicant may file an application to enter into a development agreement. A qualified applicant is a person who has legal or equitable interest in the real property which is the subject of the development agreement or his or her authorized agent. The Director may require an applicant to submit proof of his or her interest in the real property and of the authority of the agent to act for the applicant(s).
(`78 Code, § 17.87.240.) (Ord. 3391 § 5, 2024; Ord. 2140 § 1 (part), 1992.)

17.87.250 Review of application.

   (A)   The Planning and Development Department shall transmit the proposed agreement to the City Manager. The developer shall meet with the City Manager or his or her designee to negotiate the terms of the agreement.
   (B)   The Planning and Development Department shall coordinate the review and approval of the development agreement, including the appropriate environmental review, in consultation with the City Manager, City Attorney and city staff.
   (C)   Once the agreement is in the correct form as to content, considerations and language, the proposed agreement shall be scheduled for public hearing by the Planning and Housing Commission in accordance with § 17.87.260.
   (D)   The Planning and Development Department shall prepare a staff report and recommendation to the Planning and Housing Commission based on the required findings in § 17.87.270.
(`78 Code, § 17.87.250.) (Ord. 3391 § 5, 2024; Ord. 2140 § 1 (part), 1992.)

17.87.260 Public hearing notice.

   The proposed development agreement shall be noticed as a Planning and Housing Commission public hearing and the City's Local Guidelines Implementing the California Environmental Quality Act.
(`78 Code, § 17.87.260.) (Ord. 3391 § 5, 2024; Ord. 2140 § 1 (part), 1992.)

17.87.270 Findings.

   After its hearing, the Planning and Housing Commission shall make a recommendation in writing to the City Council. This recommendation shall include the Commission's determination and reasons whether the proposed agreement:
   (A)   Is consistent with the objectives, policies, general land uses and programs specified in the General Plan and any applicable Specific Plan;
   (B)   Is compatible with the uses authorized in, and the regulations prescribed for, the land use district in which the real property is located;
   (C)   Is in conformity with the public convenience, general welfare and good land practice;
   (D)   Will be detrimental to the health, safety and general welfare;
   (E)   Will adversely affect the orderly development of property or the preservation of property values; and
   (F)   Should be approved.
(`78 Code, § 17.87.270.) (Ord. 3391 § 5, 2024; Ord. 2140 § 1 (part), 1992.)

17.87.280 Decision by City Council.

   The City Council shall review the proposed development agreement at another noticed public hearing and may accept, modify or disapprove the recommendation of the Planning Commission. The City Council in its discretion shall decide whether to approve the development agreement, but may not approve it unless it finds that the provisions of the agreement are consistent with the General Plan and any applicable Specific Plan. Development agreements shall be approved by ordinance. After the ordinance approving a development agreement takes effect, the city shall formally execute the development agreement.
(`78 Code, § 17.87.280.) (Ord. 3391 § 5, 2024; Ord. 2140 § 1 (part), 1992.)

17.87.290 Recordation.

   Upon approval of the development agreement by the City Council, the City Clerk shall cause a notarized original of the agreement to be recorded in the Official Records of the County of Riverside and shall provide a conformed copy to the Director.
(`78 Code, § 17.87.290.) (Ord. 3391 § 5, 2024; Ord. 2140 § 1 (part), 1992.)

17.87.300 Amendment or cancellation.

   The procedure for proposing an amendment to or cancellation in whole or part of the development agreement shall be the same as the procedure for entering into a development agreement. If the city initiates an amendment or cancellation, it shall first notify the property owner of its intention to initiate such proceedings at least 15 days in advance of giving notice pursuant to § 17.87.260.
(`78 Code, § 17.87.300.) (Ord. 3391 § 5, 2024; Ord. 2140 § 1 (part), 1992.)

17.87.310 Periodic review.

   (A)   The city shall review the development agreement at least once every 12 months. The developer shall demonstrate good faith compliance with the terms of the agreement by submitting an annual report to the Director in March of each year describing in detail how the provisions of the development agreement have been met during the preceding year. The annual report shall be filed on a form designated by the city, and the agreement shall provide that failure to file such an annual report amounts to a default under the agreement.
   (B)   The Director shall determine on the basis of the annual report and any supplemental information, whether the property owner has for the period of the review complied in good faith with the terms of the agreement. If the Director has determined that the property owner has not complied in good faith with the terms and conditions of the agreement, the City Council shall review the evidence provided by the Director. The City Council shall review and accept, modify or reject the Director's recommendation. If the City Council determines that the developer has not complied in good faith with the terms and conditions of the agreement during the period under review, the City Council may amend or cancel the agreement pursuant to § 17.87.300.
(`78 Code, § 17.87.310.) (Ord. 3391 § 5, 2024; Ord. 2140 § 1 (part), 1992.)