Larkspur City Zoning Code
18.26 Residential
Density Bonus, Concessions, and Incentives
18.26.010 Purpose.
To demonstrate the standards and procedures in granting affordable housing density bonuses, concessions, and incentives for housing developments, in an effort to incentivize the construction of affordable units within new developments in the City. This section implements the requirements of Government Code Sections 65915 through 65918 , as may be amended from time to time (“State Density Bonus Law”). (Ord. 1030 § 2(12), 2018; Ord. 999 § 2, 2015)
18.26.020 Definitions.
Unless otherwise specified in this chapter, the definitions found in State Density Bonus Law shall apply to the terms contained herein. (Ord. 1030 § 2(12), 2018; Ord. 999 § 2, 2015)
18.26.030 Applicability.
This chapter shall apply to all zoning districts that permit housing at a prescribed density by the General Plan land use designation and/or zoning district. Where the density allowed under the zoning district is inconsistent with the density allowed under the General Plan land use designation, the land use designation density shall prevail. This chapter works in conjunction with, and does not replace or prevail over the City’s inclusionary housing ordinance, Larkspur Municipal Code Chapter 18.25. (Ord. 1030 § 2(12), 2018; Ord. 999 § 2, 2015)
18.26.040 State Density Bonus and Affordable Housing Concessions and Incentives.
A developer of a housing development in the City may be permitted a density bonus and incentives in accordance with the provisions of Government Code Sections 65915 through 65918 (State Density Bonus Law) as provided below:
A. Density Bonus. In compliance with Government Code Section 65915 et seq., or successor sections thereto, the City shall provide a density bonus for a qualifying housing development, as defined therein. This section shall apply to all zoning districts within the City that allow residential use. The bonus granted pursuant to this section shall apply only to residential projects or residential components of mixed-use projects, not including units granted as a density bonus. The proposed project shall have all of the following characteristics in order to qualify for a density bonus:
1. The residential development must include a minimum of five (5) dwelling units.
2. The applicant seeks and agrees to provide housing units to very low-, low- or moderate-income households or senior citizens consistent with the ratios specified in Government Code Section 65915.
3. The resulting density is beyond that permitted by the applicable zoning district.
4. The applicant agrees to retain the affordable status of housing units for at least fifty-five (55) years through the recordation of a deed restriction and through entering a density bonus housing agreement as set forth in Larkspur Municipal Code Section 18.26.060.
5. If the residential development is replacing existing affordable housing, the replacement fully complies with Government Code Section 65915(c)(3).
B. Concessions and Incentives. Applicants who voluntarily agree to develop a housing development that complies with the affordability requirements referenced in subsection (A) of this section may submit to the City a proposal for the specific incentive(s) or concession(s) described in Larkspur Municipal Code Section 18.26.050(G) or otherwise provided by applicable state law, including all provisions of the Density Bonus Law, Government Code Sections 65915 through 65918 . A proposal shall be submitted concurrently with the application for a density bonus. (Ord. 1030 § 2(12), 2018; Ord. 999 § 2, 2015)
18.26.050 Application and Review.
A. An application for a state density bonus, incentive, or concession shall be submitted with the first application for approval of a housing development and shall be processed concurrently with all other applications required for the housing development. The application shall be submitted on a form prescribed by the City and shall include, at a minimum, the following information:
1. A site plan showing the total number and location of all proposed housing units and the number and location of proposed housing units which qualify the housing development for density bonus housing units.
2. The manner in which the applicant shall satisfy the affordability requirements for the housing units which qualify the housing development for density bonus units including:
a. Evidence that the project meets thresholds set by State Density Bonus Law, excluding the units added by the granted density bonus;
b. Evidence showing the number of affordable housing units on the property in the five (5) years preceding the date of the application;
c. Calculations showing the maximum base density;
d. Number or percentage of affordable units and the income level at which the units will be restricted;
e. Number of market rate units to result from the granted density bonus;
f. Resulting density, described in units per square foot; and
g. A written acknowledgement that the project will be subject to a condition of approval and deed restriction to retain affordability of the affordable unit(s) for at least fifty-five (55) years.
3. A description of any requested incentives or concessions, waivers or modifications of development standards, or modified parking standards, including:
a. A description of how the requested incentives or concessions would reduce project costs.
b. A description of how any development standards requested to be waived or modified would physically preclude the construction of the proposed housing.
4. For all incentives or concessions, except mixed use development, the application shall include information deemed sufficient by the City that the requested incentives or concessions result in identifiable, financially sufficient, and actual cost reductions.
a. For waivers or modifications of development standards, the application shall include evidence deemed sufficient by the City that the development standard from which a waiver or modification is requested will have the effect of precluding the construction of the housing development at the densities to which the applicant is entitled pursuant to this chapter and with the concessions and incentives permitted by this chapter.
b. Information required by this subsection may include a financial analysis or other report demonstrating that the requested incentives or concessions result in identifiable, financially sufficient and actual cost reductions necessary to ensure the financial feasibility of the proposed units.
c. The information required by subsection (A)(4)(b) of this section shall be provided directly to an independent analyst hired by the City. The analyst shall prepare a written report for the City that evaluates whether the requested incentives or concessions would result in identifiable, financially sufficient and actual cost reductions necessary to ensure the financial feasibility of the proposed units. The applicant shall be responsible for all consulting costs for document preparation and review.
5. If a density bonus is requested for a land donation, the application shall show the location of the land to be dedicated and provide evidence that each of the conditions pursuant to Government Code Section 65915(g)(2)(A) through (H) are met.
6. If a density bonus or incentive or concession is requested for a child care facility pursuant to Government Code Section 65915(h), the application shall show the location and square footage of the child care facility and provide evidence that the community lacks adequate child care facilities.
B. Review and Consideration. An application for a density bonus, incentive or concession, waiver or modification of a development standard, or revised parking standard, shall be considered and acted upon by the City body with review authority for the housing development. Complete applications for a residential development project, which include all required submittal documents and which include the construction of affordable units, shall be processed by all City departments before other residential land use applications regardless of the original submittal date. Complete applications which include all required submittal documents and which include affordable rental units shall be processed before applications including owner-occupied units.
C. Approval. Before approving an application for a density bonus, incentive or concession, or waiver or modification of a development standard, the approval body shall make the following findings:
1. If the density bonus is based all or in part on a donation of land, the conditions of Government Code Section 65915(g)(2)(A) through (H) are met.
2. If the density bonus, incentive or concession is based all or in part on the inclusion of a child care facility, that the conditions included in Government Code Section 65915(h)(2)(A) and (B) are met.
3. If the incentive or concession includes mixed use development, the findings included in Government Code Section 65915(k)(2) are met.
4. If a waiver or modification of a development standard is requested, the developer has demonstrated, for each requested waiver or modification, that the waiver or modification is necessary to make the housing units economically feasible and that the development standards from which a waiver or modification is requested will have the effect of precluding the construction of a housing development at the densities to which the applicant is entitled pursuant to this chapter or with the concessions and incentives permitted by this chapter.
5. If affordable housing existed on the site in the five (5) years preceding the application, that the application meets all of the requirements of Government Code Section 65915(c)(3).
D. The approval body may deny a concession or incentive if it makes a written finding based upon substantial evidence of either of the following:
1. The concession or incentive is not required to provide for affordable rents or affordable housing costs as required by this chapter.
2. The concession or incentive would have a specific adverse impact upon public health or safety or the physical environment or on any real property listed in the California Register of Historical Resources, and there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact without rendering the development unaffordable to lower-, very low- or moderate-income households. For purposes of this subsection, “specific adverse impact” means 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 that the application was deemed complete.
3. The concession or incentive would be contrary to state or federal law.
E. The approval body may deny a waiver or modification of a development standard only if it makes a written finding based upon substantial evidence of either of the following:
1. The waiver or modification would have a specific adverse impact upon health, safety or the physical environment and there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact without rendering the housing development unaffordable to lower-, very low- or moderate-income households. For purposes of this subsection, “specific adverse impact” means 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 that the application was deemed complete.
2. The waiver or modification would have an adverse impact on any real property listed in the California Register of Historical Resources.
3. The concession or incentive would be contrary to state or federal law.
F. If a density bonus or concession or incentive is based on the provision of child care facilities, the approval body may deny the density bonus or concession or incentive if it finds, based on substantial evidence, that the City already has adequate child care facilities.
G. For projects which meet or exceed the inclusionary requirements as specified in Larkspur Municipal Code Section 18.25.040(A), the City Council may consider, on a case-by-case basis, at its sole discretion, the provision of the following additional concessions or incentives, where consistent with the Housing Element of the City of Larkspur General Plan:
1. Waiver or modification of City standards thereby directly reducing project costs while remaining consistent with the latest edition of the California Building Code. The developer shall be responsible for documenting that the waiver or modification is necessary for the feasibility of the residential development project and is consistent with all applicable provisions of the California Building Code.
2. Provision of direct financial assistance in the form of a loan or grant using trust fund or other appropriate available funds subject to the recommendation of the City Manager.
3. Deferral of payment of all City-required fees on market rate units, but payment shall be made prior to, and as a condition of, release of utilities and issuance of a certificate of occupancy.
The concessions and incentives described in this section are in addition to any incentives or concessions to which a project may be entitled pursuant to this chapter, the State Density Bonus Law, or other provision of law. (Ord. 1030 § 2(12), 2018; Ord. 999 § 2, 2015)
18.26.060 Density Bonus Housing Agreement.
A. Density Bonus Housing Agreement. An applicant requesting a density bonus shall agree to enter into an affordable housing agreement (“agreement”) with the City in the City’s standard form of agreement. Execution of the agreement shall be made a condition of approval for any discretionary planning permit for housing developments pursuant to this chapter and shall be recorded as a restriction on any parcels on which the housing units which qualify the housing development for a density bonus will be constructed.
B. Recording of Agreement. The agreement shall be recorded prior to the final or parcel map approval, or, where the housing development does not include a map, prior to the issuance of a building permit.
C. Contents of the Agreement. Each agreement shall include, but not be limited to, the following:
1. A description of the residential development, including whether the housing units which qualify the housing development for a density bonus will be rented or owner-occupied;
2. The number, size and location of the housing units which qualify the housing development for a density bonus;
3. Provisions and/or documents for resale restrictions, deeds of trust, right of first refusal or rental restrictions;
4. Provisions for monitoring the ongoing affordability of the housing units which qualify the housing development for a density bonus, and the process for qualifying prospective resident households for income eligibility; and
5. Any additional obligations relevant to the compliance with this chapter.
D. Owner-Occupied Agreements. The purchaser of each owner-occupied housing unit which qualified the housing development for a density bonus shall execute the City’s standard form agreement, to be recorded against the parcel, and which includes such provisions as the City may require to ensure continued compliance with this chapter.
E. Agreements for Child Care Facilities and Land Donations. Density bonus housing agreements for child care facilities and land dedications shall ensure continued compliance with all conditions included in Government Code Sections 65915(h)(2)(A) and (B) and 65915(g)(2)(A) through (H) , respectively. (Ord. 1030 § 2(12), 2018; Ord. 999 § 2, 2015)
18.26.070 Enforcement.
Enforcement of this chapter shall be through the same enforcement set forth in Larkspur Municipal Code Section 18.25.050. (Ord. 1030 § 2(12), 2018; Ord. 999 § 2, 2015)