The purpose of this Chapter is to create an Enhanced Density Bonus (EDB) incentive program that exceeds and enhances those bonuses and incentives currently provided under the State Density Bonus Law (Government Code Section 65915) that could be utilized by qualifying projects in lieu of, but not in addition to, the State Density Bonus law provisions, in order to facilitate the development of mixed-income, multi-family and special needs housing Citywide, with increased density bonuses and incentives focused in high quality transit areas. The provisions of this Chapter are adopted in order to assist the City in meeting its Regional Housing Needs Assessment (RHNA) requirement through 2029; support inclusionary housing in the City; and implement the goals and objectives of the City's "Everyone Home" program as well as the Land Use Element of the City's General Plan, in order to augment and produce sufficient levels of market-rate and affordable housing across a variety of housing types to meet the demonstrated housing need of the City.

(ORD-21-0034 § 1, 2021)

A.

High Quality Transit Bus Corridor (HQTC): A high-quality transit bus corridor means a corridor with fixed route public bus service with service intervals no longer than fifteen (15) minutes during peak commute hours, as defined by California Public Resources Code 21155.

B.

Inclusionary Unit or Inclusionary Housing Projects: a dwelling unit/project required to be affordable to very low or moderate-income households and subject to an inclusionary housing regulatory agreement in areas subject to Inclusionary Housing Requirements outside of the coastal zone.

C.

Major Transit Stop: A site or location containing a rail station or the intersection of two (2) or more public bus routes with a service interval of fifteen (15) minutes or less during the morning and afternoon peak commute periods, as defined by California Public Resources Code 21064.3. The stations or bus routes may be existing, under construction, or included in the most recent Southern California Association of Governments (SCAG) Regional Transportation Plan (RTP).

D.

Qualifying Project: A residential or mixed-use project that includes On-Site Restricted Affordable Units at a rate that meets or exceeds the minimum requirements to satisfy the Enhanced Density Bonus Incentives and as set forth in this Chapter. A qualifying project must be proposed on an eligible parcel, and meet or exceed the income thresholds as defined below.

1.

Very Low-Income Households as defined in Section 50105 of the California Health and Safety Code.

2.

Low Income Households as defined in Section 50093 of the California Health and Safety Code.

3.

Moderate Income Households as defined in Section 50093 of the California Health and Safety Code.

(ORD-23-0036 § 1, 2023; ORD-21-0034 § 1, 2021)

Parcels in the City may be eligible for an Enhanced Density Bonus where any residential uses, including live/work units, are permitted either by the zoning district or the General Plan Place Type designation; and where five (5) or more housing units could be built without a bonus, based on the allowable densities and site size.

(ORD-21-0034 § 1, 2021)

A.

Applicants with qualifying projects and parcels may request use of the EDB Chapter provisions and procedures, or the State Density Bonus provisions and procedures (Government Code 65915), but may not utilize both programs in order to increase density or otherwise qualify for project incentives. Neither the EDB Chapter provisions nor State Density Bonus Law supersede or in any way alter or lessen the effect or application of the Coastal Act and the LCP. Any incentives, concessions, waivers, and/or density bonuses applied to proposed projects via application of State Density Bonus Law shall only be allowed if coastal resources are protected as required by the Coastal Act and the LCP.

B.

All deed-restricted affordable units approved utilizing the provisions of this Chapter shall be deed restricted for a minimum of fifty-five (55) years.

C.

All projects utilizing the provisions of this Chapter are required to undergo Site Plan Review (SPR) in accordance with the provisions set forth in Chapter 21.25.

D.

No density bonus granted in accordance with the provisions of this Chapter shall exceed one hundred (100) percent; and the total number of additional incentives/concessions shall not exceed nine (9), and shall not exceed six (6) incentives/concessions for projects that are also subject to the City's Inclusionary Housing Ordinance (Chapter 21.67).

E.

No-Net-Loss.

1.

All projects utilizing the provisions of this Chapter shall be subject to "no-net-loss" provisions that exceed State and City mandated requirements and regulations; and shall include the replacement of any affordable units lost as a result of the approval or construction of the project on a one-for-one basis, in addition to the minimum number of affordable units required by this Chapter (as calculated as a percentage of the total base units). Existing units shall be deemed affordable and subject to the replacement requirement if either the income of the household qualifies as low income at the low, very low or extremely low income levels or if the rent level, regardless of household income, is affordable to low, very low or extremely low income households. The number and affordability levels of the replacement units to be provided shall be determined by both the income level of the household and the rent level of the unit regardless of household income.

2.

Applicants shall provide evidence/documentation to the satisfaction of the Director of Development Services, or designee, in order to establish the rent and affordability levels of all individual dwelling units that will, or may, be removed as a result of a proposed project. Such documentation/evidence shall include an accounting of all rents charged for the individual units over the preceding five (5) years. Rent levels will be compared to Average Median Income (AMI) to establish the units' affordability levels. The requirement to provide an accounting of rents for the preceding five (5) years applies retroactively to any units that may have been demolished or vacated within the five (5) year period preceding the application. No demolition or construction permits shall be issued for multifamily developments consisting of five (5) or more residential dwelling units until the required documentation is provided and approved; and an application is submitted to the City that incorporates both replacement and density bonus units for the proposed project.

F.

Rounding and calculations. All calculations for affordable housing requirements, bonuses and/or incentives shall be rounded up to the next whole number.

G.

Affordable unit size, mix and location. Affordable units shall be evenly distributed throughout the project and shall have equal access to on-site amenities. Affordable units shall be generally reflective of the mix of unit sizes and number of bedrooms of the overall project, and shall be comparable to market-rate units in terms of design, and exterior and interior finishes.

(ORD-23-0036 § 2, 2023; ORD-21-0034 § 1, 2021)

The Tables set forth in this Section establish the percentage of affordable units in a proposed EDB project and the eligible density bonus that can be granted based on the level of affordability for each of three (3) geographic tiers: (1) the Base Area; (2) High Quality Transit Corridors; and (3) Major Transit Stops, as defined above.

Table 21.68-1
Base Area

Footnote (*): Use of 3% and 4% affordability components only permissible when the total number of affordable units across multiple restricted income levels equals or exceeds 12% of all units. For example, an applicant may propose 3% Very Low Income (VLI) in the Base Area and be eligible for a 15% density bonus; however, the 3% can only be used in conjunction with one or more other affordable components that total a minimum of 12% affordable units in a project.

Table 21.68-2
High Quality Transit Corridors

Footnote (*): Use of 3% and 4% affordable components only permissible when the total number of affordable units across multiple restricted income levels equals or exceeds 12% of all units. For example, an applicant may propose 3% Very Low Income (VLI) in the High Quality Transit Corridor and be eligible for a 20% density bonus; however, the 3% can only be used in conjunction with one or more other affordable components that total a minimum of 12% affordable units in a project.

Table 21.68-3
Major Transit Stop

Footnote (*): Use of 3% and 4% affordable components only permissible when the total number of affordable units across multiple restricted income levels equals or exceeds 12% of all units. For example, an applicant may propose 3% Very Low Income (VLI) in a Major Transit Stop eligibility area and be eligible for a 35% density bonus; however, the 3% can only be used in conjunction with one or more other affordable components that total a minimum of 12% affordable units in a project.

(ORD-23-0036 § 3, 2023; ORD-21-0034 § 1, 2021)

The following Table shall determine how many incentives/concessions a "Non-Inclusionary Project" may be eligible for, based on the percent density bonus a project has qualified for. (See above, Density Bonus Eligibility and Percentages.)

Table 21.68-4
Maximum Number of Concessions for Non-Inclusionary Projects

Note: For EDB projects that are inclusionary housing projects, the following Table shall be used to calculate the number of incentives/concessions a project is eligible for. In the Downtown (PD-30) and Midtown (SP-1) areas, incentives/concessions shall be based on the total percent density bonus a project qualifies for (see above, Density Bonus Eligibility and Percentages).

Table 21.68-5
Maximum Number of Concessions for Inclusionary Housing Projects

*Note: Any height increases on a lot sharing a lot line or across an alley from an R1 or R2 zoned property occupied by a single-family home or duplex, shall step-back any height increase over twelve (12) feet at least ten (10) feet from the exterior face of the ground floor of the building.

(ORD-23-0036 § 4, 2023; ORD-21-0034 § 1, 2021)

A.

The following are the by-right "on-menu" concessions/incentives that an EDB project may request based on the number of concessions/incentives a project is eligible for per the concessions/incentive Tables set forth above. In the coastal zone, concessions/incentives including but not limited to parking and open space concessions/incentives shall only be authorized or allowed by-right if there will be no significant adverse impacts to coastal resources, including but not limited to public access and environmentally sensitive habitat area, and if found consistent with the resource protection policies of the certified LCP.

1.

A floor area ratio (FAR) increase of forty (40) percent per concession;

2.

A fifteen (15) percent reduction in non-residential parking per concession;

3.

A thirty (30) percent reduction in open space per concession;

4.

An allowance for all shared/public (in lieu of private) open space;

5.

An averaging of floor area ratio (FAR), density, parking, open space or access across zones (one (1) incentive per development standard averaged);

6.

A fifteen (15) percent reduction in transitional height requirements;

7.

A thirty (30) percent reduction in an individual setback per concession (maximum one (1) incentive per side or front yard with a maximum of two (2) incentives on the rear yard);

8.

A maximum of one (1) additional story in height in the Base and HQTC areas and a maximum of three (3) additional stories in height in the Major Transit Stop area.

B.

In addition to the above "on-menu" concessions/incentives, an Applicant may propose or request a concession/incentive, not otherwise listed herein, that will be considered "off-menu." Each such concession proposed or requested shall count as two (2) concessions and shall be subject to review and approval by the Planning Commission based on the physical necessity of the incentive for the provision of the affordable units. Only projects eligible for a minimum of forty (40) percent density bonus may seek an off-menu concession/incentive. No concessions related to signage shall be granted.

C.

Height Concessions.

1.

A story shall not exceed twelve (12) feet;

2.

Each additional story in height counts as one (1) incentive, except that any additional stories in height above one (1) in the Base and HQTC areas shall count as two (2) incentives;

3.

Maximum Height Concessions. Projects are limited to a maximum height concession of two (2) stories in the Base area and three (3) stories in the HQTC area. Additional height above one (1) story in both the Base and HQTC areas is considered "off-menu" and is subject to the provisions of 21.68.070.B.

4.

Any height increases on a lot sharing a lot line or across an alley from an R1 or R2 zoned property occupied by a single-family home or duplex shall step-back any height increase over twelve (12) feet at least ten (10) feet from the exterior of the ground floor of the building face.

(ORD-23-0036 § 5, 2023; ORD-21-0034 § 1, 2021)

A.

Projects with large/family units are eligible for additional density bonuses up to an additional twenty (20) percent. Bonuses are additive; however, total bonuses shall not exceed one hundred (100) percent. Eligible projects must provide affordable units, and mix of affordable units must include some proportion of the large units:

1.

More than twenty-five (25) percent two (2) bedroom units of nine hundred seventy (970) square feet (SF) or larger;

2.

More than five (5) percent three (3) bedroom units of eleven hundred forty (1140) square feet (SF) or larger.

B.

Projects with affordable units that equal or exceed twelve (12) percent that also provide an on-site childcare facility are exempt from floor area ratio (FAR) and parking calculations for the childcare use. Such projects are also eligible for one (1) additional incentive from the list set forth in Section 21.68.060.A.

(ORD-21-0034 § 1, 2021)

Parking. EDB projects are eligible for off-street parking reductions and may avail themselves of either the reductions offered by the State regulations or the parking reductions offered by Table 21.68-6. Projects may use either of the reductions, but not both. EDB projects outside of the coastal zone comprised of one hundred (100) percent affordable units shall not be required to provide on-site parking. In the coastal zone, EDB projects comprised of one hundred (100) percent affordable units shall be required to provide off-street parking in accordance with Table 21.68-7.

Table 21.68-6
EDB Parking Ratio Table

Table 21.68-7
EDB Parking Ratio Table for Projects in the Coastal Zone Comprised of One Hundred (100) Percent Affordable Units

(ORD-23-0036 § 6, 2023; ORD-21-0034 § 1, 2021)

The ordinance will sunset, unless otherwise extended by the City Council, when the City meets its affordable component of its RHNA allocation of 26,502 units, or on January 1, 2030, whichever occurs first.

(ORD-21-0034 § 1, 2021)