The purpose of this chapter is to facilitate the development of affordable housing consistent with the goals, policies, and programs of the housing element and to provide incentives for the development of housing for very low-, low-, and moderate-income, special needs, and senior households in accordance with Government Code Sections 65915-65918.

(Ord. No. 575, § I(Exh. A), 6-29-2023)

A.

Terms Defined. Terms used in this chapter are defined as follows:

1.

"Base project" means the maximum allowable residential density on a housing development site pursuant to the applicable zoning district.

2.

"Density bonus units" means those residential units, floor area, rental beds, or bedrooms added to the base project pursuant to the provisions of Government Code Section 65915 and this chapter.

3.

"Eligible housing development" means as defined in Government Code Section 65917.2.

4.

"Housing development" means as defined in Government Code Section 65915(i).

5.

"Incentive and concession" mean an incentive or a concession as the terms are used in Government Code Section 65915 and in particular as defined in Section 65915(k) thereof. The city may request reasonable documentation from the applicant to support the request.

6.

"Qualifying unit" means a unit that is provided at a below market-rate rent or sales price as set forth in Government Code Section 65915 to receive a density bonus and/or waivers and reductions and/or incentives and concessions.

7.

"Waiver and reduction" means a waiver or a reduction as the terms are used in Government Code Section 65915 and in particular in Section 65915(e) thereof, including any and all changes to or exemptions from physical lot development standards that are required to avoid precluding the construction of a housing development with density bonus units, as set forth in Section 65915(e). The city may request reasonable documentation from the applicant to support the request.

B.

Terms Not Defined. Terms not defined in this section shall be interpreted to give this chapter its most reasonable meaning and application, consistent with applicable state and federal law.

(Ord. No. 575, § I(Exh. A), 6-29-2023)

In addition to any other information required by this title, an application for a density bonus must include the following information:

A.

A description of how the proposed project will satisfy the eligibility requirements of Government Code Section 65915 or 65917.2.

B.

The requested density bonus pursuant to Section 17.128.040 (Density bonus calculations and procedures).

C.

Any waivers and reductions that are sought under Government Code Section 65915(e) that would be required to accommodate the housing development including the density bonus units.

D.

Any incentives and concessions that are sought under Government Code Section 65915(d) accompanied by documentation of resulting cost reductions to provide for affordable housing costs.

E.

Any requested additional bonus units under Government Code Section 65915(n).

F.

Any requested parking reductions under Government Code Section 65915(p).

G.

Whether the applicant elects to receive a density bonus that is less than that mandated by Government Code Section 65915, including a density bonus of zero. In such cases, the applicant retains their entitlement to incentives and concessions.

H.

Documentation of how a project complies with regulations regarding replacement units as described in Government Code Section 65915(c)(3).

(Ord. No. 575, § I(Exh. A), 6-29-2023)

A.

Calculation. Density bonuses must be calculated as set forth in Government Code Sections 65915 and 65917.2.

B.

Procedures. Density bonus requests must accompany housing development permit applications and will be decided upon concurrent with the underlying permit for the project.

(Ord. No. 575, § I(Exh. A), 6-29-2023)

A.

Calculation. For purposes of this chapter, the number of incentives and concessions are counted as follows:

1.

Any incentive and concession that would otherwise require discretionary approval by the planning commission or city council of any single dimensional lot development standard, such as height or setbacks, or any single quantitative lot development standard, such as parking or open space, counts as one (1).

2.

A proposed incentive and concession that would involve exceedance of a single physical lot development standard counts as one (1) even if that exceedance would otherwise require more than one (1) permit (e.g., extra height may require permits for height, floor area ratio, and/or number of stories but would count as one (1) incentive and concession for height).

3.

Where it is ambiguous as to whether a proposed incentive and concession involves one (1) or more dimensional or quantitative lot development standards, the stricter interpretation applies, as determined by the review authority.

B.

Procedural Requirements.

1.

The city shall grant incentives and concession unless findings are made as set forth in Government Code Section 65915(d)(1).

2.

The city is not required to deny a proposed incentive and concession solely because it can make a finding under Government Code Section 65915(d)(1).

3.

The city bears the burden of proof for the denial of a requested incentive and concession.

4.

Unless denied under Government Code Section 65915, incentives and concessions are exempt from discretionary review of permits under this title, and by law do not modify the CEQA review status of a project.

(Ord. No. 575, § I(Exh. A), 6-29-2023)

A.

Proposal. An applicant may submit to the city a proposal for waivers and reductions of development standards that physically prevent construction of a housing development and density bonus units meeting the criteria of Government Code Section 65915(b).

B.

Negotiated Process. The city may negotiate changes to the requested waivers and reductions as part of the use permit and objective design review process, in coordination with the applicant, to address aspects of the project that may be of concern in the community or inconsistent with overarching principles of the general plan, zoning ordinance, and objective design guidelines.

C.

Denial. The city may deny waivers and reductions for the reasons set forth in Government Code Section 65915(e)(1).

(Ord. No. 575, § I(Exh. A), 6-29-2023)

Qualifying units must meet the following standards:

A.

Recipient Requirement.

1.

All qualifying units other than those in limited equity cooperatives shall be sold or rented to:

a.

Very low-income households, low-income households, or lower-income households; or

b.

The city or its designee.

2.

Qualifying units in limited equity cooperatives shall be sold or rented to households whose gross incomes do not exceed one hundred twenty (120) percent of the median household income.

B.

Agreement. The applicant shall execute a written agreement with the city indicating the number, type, location, approximate size, and construction schedule of all dwelling units and other information as required to determine compliance with this chapter.

C.

Timing. All qualifying units in a project and phases of a project shall be constructed concurrently with, or before, the construction of non-qualifying units.

D.

Criteria. All qualifying units shall be:

1.

Reasonably dispersed throughout the project;

2.

Of the same size and contain, on average, the same number of bedrooms as the non-qualifying units in the project; and

3.

Comparable with the design or use of non-qualifying units in terms of appearance, materials, and finish quality.

E.

In-Lieu Fee Requirement. In projects where calculating the unit requirement results in a fraction of a unit, the fraction shall be paid in the form of an in-lieu fee to the city.

1.

Where Government Code Section 65915 does not apply, the in-lieu fee shall be the fractional value of the difference between development cost (excluding marketing costs and profit) and actual sales price for the average comparable unit in projects.

2.

Where Government Code Section 65915 does apply, the in-lieu fee shall be the difference between affordable cost for an appropriately sized household and the fractional value of the average comparable actual sales price for the fraction of the unit in projects to require a density bonus or equivalent incentive.

F.

Use of In-Lieu Fees.

1.

The in-lieu fee shall be used by the city or its designee, such as a non-profit housing development corporation, to provide, construct, or promote the creation or retention of low-income housing in the city.

2.

The use of in-lieu fees for specific housing programs shall be brought before the city council for review and approval.

G.

Exceptions. Where the applicant shows, and the city agrees, that the direct construction and financing costs of the qualifying units, excluding marketing cost, profit, and land costs, exceeds the sales prices allowed for qualifying units by this chapter, the city council may approve one (1) or more of the following measures to reduce costs or increase profitability:

1.

Reduce the floor area or the interior amenities of the qualifying units, provided that such units conform to applicable building and housing codes.

2.

Increase the number of bedrooms in the qualifying units.

3.

Waive the in-lieu fees for fractions of units.

(Ord. No. 575, § I(Exh. A), 6-29-2023)

Before issuance of a certificate of occupancy for a housing development that has received a density bonus, the applicant must enter into a regulatory agreement in a form provided by the city that implements Government Code Sections 65915-65918 and this chapter.

(Ord. No. 575, § I(Exh. A), 6-29-2023)