This chapter implements Government Code Section 65915, which requires the County to provide incentives for affordable housing, senior housing, and child care facilities. In the event of any conflict between this chapter and Section 65915 of the Government Code, the provisions of the Government Code shall apply.

(Ord. No. 669, § 1 (Exh. A), 5-19-14).

"Affordable housing project" means a housing project which will be made available to and reserved for very low-income households, low-income households, or moderate-income households at a monthly rent or payment not to exceed thirty percent of the total combined monthly income of the targeted income group.

"Density bonus" means a density increase over the otherwise maximum allowable residential density as permitted by the applicable zone in the zoning ordinance.

"Common-interest development" means a community apartment project, a condominium project, a planned development, or a stock cooperative.

"Child care facility," means an establishment providing child day care services, other than a family day care home, including, but not limited to, infant centers, preschools, extended day care facilities, and school-age child care centers.

"Housing project" means a development project for five or more residential units, a subdivision or common interest development of five or more unimproved residential parcels, a development project to substantially rehabilitate and convert an existing commercial building to contain five or more residential units, or the substantial rehabilitation of an existing multi-family dwelling where the result of the rehabilitation would be a net increase in five or more residential units.

"Incentive" means the waiver or reduction of a county standard, regulation, or requirement as necessary to render an affordable housing project financially feasible.

"Low-income households" means a household with a total combined income not exceeding eighty percent of the area median income, adjusted for household size, as established by the U.S. Department of Housing and Urban Development.

"Maximum allowable residential density" means the maximum residential density permitted by the applicable zone as established in the zoning ordinance.

"Moderate income household" means a household with a total combined income not exceeding one hundred twenty percent of the area median income, adjusted for household size, as established by the U.S. Department of Housing and Urban Development.

"Senior housing" means a development project of at least thirty-five dwelling units reserved for households headed by a person sixty-two years of age or older.

"Very low income household" means a household with a total combined income not exceeding fifty percent of the area median income, adjusted for household size, as established by the U.S. Department of Housing and Urban Development.

(Ord. No. 669, § 1 (Exh. A), 5-19-14).

The following types of development projects are eligible for a density bonus and incentives as identified in this chapter.

A.

Affordable Housing Projects. Affordable housing projects including one or more of the following:

1.

At least ten percent of the units affordable for low-income households.

2.

At least five percent of the units affordable for very low-income households.

3.

At least ten percent of the total dwelling units in a common-interest development affordable to moderate-income households, provided that all units are offered to the public for purchase.

B.

Senior Housing. A senior housing development or a mobile home park that limits residency based on age requirements for housing for older persons, in compliance with Civil Code Section 798.76 or 799.5.

C.

Donation of Land. A donation of land for the purpose of constructing housing for very low income households.

D.

Condominium Conversions. The conversion of apartments to condominiums that provides either of the following:

1.

At least thirty-three percent of the units affordable to low- or moderate-income households.

2.

At least fifteen percent of the units affordable to very low-income households.

(Ord. No. 669, § 1 (Exh. A), 5-19-14).

If requested by the applicant, the county shall grant density bonuses in the amounts identified below.

A.

Very Low-Income Projects. Housing projects with at least five percent of units affordable to very low-income households are entitled to a density bonus as shown:

B.

Low-Income Projects. Housing projects with at least ten percent of units affordable to low income households are entitled to a density bonus as shown:

C.

Moderate-Income Projects. Common interest development projects with at least ten percent of units affordable to moderate-income households are entitled to a density bonus as shown:

D.

Senior Housing. Senior housing projects are entitled to a density bonus of 20 percent of the number of senior housing units.

E.

Donations of Land. Projects that donate land for very low-income housing consistent with Section 18.114.060 (Donations of Land) are entitled to a density bonus as shown:

Amount of Density Bonus for Donations of Land

F.

Condominium Conversions.

1.

Condominium conversion projects meeting affordability requirements identified in Section 18.114.030 (Eligibility) are entitled to a density bonus of twenty-five percent of the number of apartments within the structure to be converted.

2.

As an alternative to the twenty-five percent density bonus.

3.

Condominium conversions are ineligible for a density bonus if the rental units to be converted received a density bonus when they were originally constructed.

G.

Calculation of Density Bonus.

1.

All density calculations resulting in fractional units shall be rounded up to the next whole number.

2.

Affordable housing projects shall choose a density bonus from only one affordability category (e.g., very low-income) and may not combine categories.

3.

A density bonus for a senior housing project may not be combined with a density bonus for an affordable housing project.

4.

A density bonus for the donation of land may be combined with density bonuses for affordable and senior housing. However, in no case may a total density bonus exceed thirty-five percent.

(Ord. No. 669, § 1 (Exh. A), 5-19-14).

All affordable units built under the provisions of this chapter shall meet the following requirements:

A.

Concurrency. Affordable units shall be built concurrently with market rate units unless the county and the applicant agree within the density bonus housing agreement to an alternative schedule for development.

B.

Location. Affordable units shall be built on-site wherever possible and, where practical, shall be dispersed within the housing development.

C.

Unit Size. The average number of bedrooms of the affordable units shall be equivalent or greater to the bedroom mix of the housing development's other units.

D.

Design. The design and appearance of the affordable units shall be compatible with the design of the housing development as a whole.

E.

Development Standards. Housing developments shall comply with all applicable development standards, except those that may be modified as permitted by this chapter.

F.

Linked Sites. Circumstances may arise in which the public interest would be served by allowing some or all of the affordable units associated with one housing development to be produced and operated at an alternative development site. If the developer and the county agree to allow the production and operation of affordable units at an alternative site, the resulting linked developments

shall be considered a single housing development for the purposes of this chapter.

(Ord. No. 669, § 1 (Exh. A), 5-19-14).

All land donated for the purpose of constructing affordable housing shall meet the following requirements:

A.

Date of Transfer. The applicant shall donate and transfer the land no later than the date of approval of the final subdivision map, parcel map, or residential development application.

B.

Developable Acreage. The developable acreage of the land being transferred shall be sufficient to permit construction of units affordable to very low-income households in an amount not less than ten percent of the number of residential units in the proposed development.

C.

Minimum Size. The transferred land shall have an area sufficient to permit development of at least forty units.

D.

Appropriate Regulations and Infrastructure. The transferred land shall have the appropriate general plan land use designation, zoning and development standards to make the development of affordable units feasible, and it shall have existing or planned public facilities and infrastructure that are adequate to support the development.

E.

Entitlements. No later than the date of approval of the final subdivision map, parcel map, or residential development application, the transferred land shall have all of the permits and approvals, other than building permits, necessary for the development of the very low-income housing units on the transferred land.

F.

Deed Restriction. The transferred land and the affordable units shall be subject to a deed restriction ensuring continued affordability of the units consistent with the requirements of this chapter. The restriction shall be recorded on the property at the time of dedication.

G.

Recipient. The land shall be transferred to the county or to a housing developer approved by the county. The county may require the applicant to identify and transfer the land to the developer.

H.

Location. The transferred land shall be within the boundary of the proposed development or, if the county agrees, within one-quarter-mile of the boundary of the proposed development.

(Ord. No. 669, § 1 (Exh. A), 5-19-14).

A.

Eligibility. An applicant who applies for a density bonus may also request one to three incentives, as identified in subsection D (Available Incentives), as needed to contribute to a development project's financial feasibility.

B.

Number of Incentives. An applicant may request the following number of incentives:

1.

One incentive for projects that include at least ten percent of the total units for low-income households, at least five percent for very low-income households, or at least ten percent for persons and families of moderate income in a common-interest development.

2.

Two incentives for projects that include at least twenty percent of the total units for low income households, at least ten percent for very low-income households, or at least twenty percent for persons and families of moderate income in a common-interest development.

3.

Three incentives for projects that include at least thirty percent of the total units for low income households, at least fifteen percent for very low-income households, or at least thirty percent for persons and families of moderate income in a common-interest development.

C.

Additional Incentives. The county may, at its discretion, grant additional incentives to increase the number of affordable units provided or to increase the affordability of the affordable units.

D.

Available Incentives. Each development incentive may include one and only one of the following types of regulatory relief or change:

1.

Reduced minimum parcel sizes or dimensions.

2.

Reduced minimum setbacks.

3.

Reduced minimum building separation requirements.

4.

Increased maximum floor area ratio.

5.

Increased maximum building height.

6.

Reduced on-site parking requirements.

7.

The waiver, reduction or deferral of planning, plan check, construction permit and/or development impact fees.

8.

Approval of mixed-use zoning for the project site in conjunction with the housing development, 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 development and the existing or planned development in the area where the proposed development will be located.

E.

Justification for Incentives. An applicant requesting an incentive shall show, using one of the following methods, that the incentive is necessary to make the affordable units economically feasible:

1.

A development pro forma showing the capital costs, operating expenses, return on investment, loan-to-value ratio, debt coverage ratio, the contributions provided by any applicable subsidy programs, the economic effect created by the minimum thirty-year use and income restrictions on the affordable housing units, and the benefit created by the density bonus and the requested incentives.

2.

An appraisal report indicating the value of the density bonus and of the incentives.

3.

A funds statement identifying the projected fínancing gap for the project. The analysis shall show how much of the funding gap is covered by the density bonus and how much by the incentives/concessions.

F.

Provision of Incentives. The county shall provide the specific incentive or incentives requested by an applicant, unless the county makes a written finding, based upon substantial evidence, of any of the following:

1.

The incentive is not required in order to provide for affordable housing costs, as defined in Section 50052.5 of the Health and Safety Code, or for rents for the targeted units to be set as specified in this section.

2.

The incentive would have a specific adverse impact, as defined in Government Code Section 65589.5(d)(2), upon public health and safety or the physical environment, or on any real property that is listed in the California Register of Historical Resources, and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact without rendering the development unaffordable to very low-income, low-income and moderate-income households.

3.

The incentive is contrary to state or federal law.

(Ord. No. 669, § 1 (Exh. A), 5-19-14).

A.

Eligibility. An applicant who applies for a density bonus may also request a waiver or reduction of any development standard that would physically prevent the construction of the development project.

B.

Development Standards Defined.

1.

Development standards include any adopted county standard or regulation related to the physical location or type of construction, including but not limited to, structure height, setbacks, parking, floor area ratio, and the placement of public works improvements.

2.

As defined in this section, development standards do not include land use regulations, permitting procedures, inclusionary housing requirements, or development impact fees.

C.

Number of Waivers or Reductions.

1.

There shall be no limit to the number of waivers or reductions available to an applicant.

2.

The approval of waivers or reductions shall neither reduce nor increase the number of incentives available to a project pursuant to Section 18.114.070 (Incentives).

D.

Justification for Approval. The county shall approve the requested waiver or reduction if the applicant can demonstrate that it is physically impossible to construct the project without the waiver or reduction.

E.

Provision of Waivers or Reductions. The county shall approve the requested waiver or reduction, unless the county makes a written finding, based upon substantial evidence, of either of the following:

1.

The waiver or reduction would have a specific adverse impact, as defined in Government Code Section 65589.5(d)(2), upon public health and safety or the physical environment, or on any real property that is 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 low-income and moderate-income households.

2.

The waiver or reduction is contrary to state or federal law.

(Ord. No. 669, § 1 (Exh. A), 5-19-14).

Development projects entitled to a density bonus and incentives are also entitled to a reduced on-site parking requirement as described below:

A.

Number of Spaces. Upon the request of the applicant, the county shall reduce the required onsite parking requirement to one parking space for a zero to one bedroom dwelling unit.

B.

Calculation of Required Parking. If the total number of parking spaces required for a development is other than a whole number, the number shall be rounded up to the next whole number.

C.

Configuration and Location of Parking. A development project may provide on-site parking through tandem parking, but not through on-street parking.

D.

Additional Parking Incentives. An applicant may request parking incentives beyond those provided in this section pursuant to Section 18.114.070 (Incentives).

(Ord. No. 669, § 1 (Exh. A), 5-19-14).

A.

Additional Bonus or Incentive. A development project eligible for a density bonus or incentive that includes a child care facility as part of the project is entitled to one of the following:

1.

An additional density bonus equal to the amount of square footage of the facility; or

2.

One additional incentive that contributes significantly to the economic feasibility of the child care facility.

B.

Conditions. The county shall require, as a condition of approving a housing development with a child care facility, that the following occur:

1.

The child care facility shall remain in operation for a period of time that is as long as or longer than the period of time during which the density bonus units are required to remain affordable.

2.

Of the children who attend the child care facility, the percentage of children who reside in affordable units shall equal or exceed the percentage of dwelling units that are available for very low-income, low-income, or moderate-income households.

C.

Basis for Denial. The county is not required to provide a density bonus or incentive for a child care facility if it finds, based upon substantial evidence, that the vicinity of the proposed project is adequately served by existing child care facilities.

(Ord. No. 669, § 1 (Exh. A), 5-19-14).

A.

Application. A developer seeking approval of a density bonus and an additional incentive or incentives shall file an application with the planning and building department. The department shall process the application concurrently with any other application required for the development project. The form and content of the application shall be as specified by the department and subject to a fee established by resolution of the board of supervisors.

B.

Hearing Process. The application shall be heard and decided by the planning commission, unless the applicant is requesting incentives requiring board of supervisors approval, as set forth in subsection (C)(2) below, in which case the application shall be approved by the board of supervisors with a recommendation from the planning commission. The planning commission's decision may be appealed to the board of supervisors.

C.

Approval of Incentives. The planning commission and board of supervisors shall be authorized to approve incentives as follows:

1.

The planning commission shall be authorized to approve development incentives that include the modification of site development standards, or the modification of zoning.

2.

Approval by the board of supervisors shall be required for all other development incentives.

(Ord. No. 669, § 1 (Exh. A), 5-19-14).

The following requirements apply to all affordable units that qualify for a density bonus or other incentive:

A.

Duration of Affordability.

1.

All units shall remain affordable for thirty years or a longer period of time if required by the construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy program.

2.

Rents shall be set at affordable levels as defined in Health and Safety Code Section 50053.

3.

Owner-occupied units shall be available at an affordable cost as defined in Health and Safety Code Section 50052.5.

4.

The county's proportionate share of appreciation shall be equal to the ratio of the county's initial subsidy to the fair market value of the home at the time of initial sale.

(Ord. No. 669, § 1 (Exh. A), 5-19-14).

A.

Agreement Required. As a condition for the approval of a density bonus and additional incentives, the applicant shall agree to enter into a density bonus housing agreement with the county. The executed density bonus housing agreement shall be recorded on the parcel or parcels designated for the construction of affordable units, or donated for the purpose of constructing housing units as specified in this section. The approval and recordation shall occur prior to final map approval or, where a map is not being processed, prior to the issuance of building permits for the parcels or units. The density bonus housing agreement shall be binding upon all future owners and successors in interest.

B.

Content of Agreement. The density bonus housing agreement shall, at a minimum, include all of the following:

1.

The total number of units approved for the housing development, including the number of affordable units.

2.

A description of the household income groups to be accommodated by the housing development, and the standards for determining the corresponding affordable rent or affordable sales price and housing cost.

3.

The location, unit size in square feet, and number of bedrooms of each affordable unit.

4.

The location and square footage of any land being donated for the purpose of constructing housing units that are affordable to very low-income households.

5.

The location and square footage of any child care facility for which a density bonus or additional incentive is being granted.

6.

Tenure of use restrictions for affordable units and units built on donated land.

7.

A schedule for the completion and occupancy of affordable units.

8.

A description of the additional incentives, waivers, or reductions being provided by the county.

9.

A description of remedies for breach of the agreement by either party, including the provision that tenants or qualified purchasers are third-party beneficiaries under the agreement.

10.

Other provisions as appropriate to ensure implementation and compliance with this chapter's requirements for density bonuses and additional incentives.

C.

For-Sale Requirements. In the case of for-sale housing developments, excluding affordable units for moderate-income households, the density bonus housing agreement shall provide for the following requirements during the use restriction period:

1.

The initial sale of each affordable unit shall be to a household that meets the income requirement for the affordable unit or, for senior citizen housing, to a senior citizen.

2.

The initial occupant of each affordable unit shall be a household that meets the income requirement for the affordable unit or, for senior citizen housing, a senior citizen.

3.

The initial purchaser of each affordable unit shall execute an instrument or agreement approved by the county restricting the sale of the affordable unit during the duration of affordability period as set forth in section 18.114.120(A) (Continued Affordability). The instrument or agreement shall be recorded against the parcel containing the affordable unit and shall contain provisions as required by the county to ensure continued compliance with this chapter and with state law.

D.

Moderate-Income Requirements. In the case of affordable units for moderate-income households, the density bonus housing agreement shall provide for the following requirements:

1.

The initial sale of each affordable unit shall be to a household that meets the income requirement for the affordable unit.

2.

When the initial purchaser sells the unit, the initial purchaser shall retain the value of any improvements, the down payment and the value of the unit's appreciation, less the county's share of the appreciation.

3.

When the initial purchaser sells the unit, the county shall receive a share of the unit's appreciation equal to the percentage by which the initial sale price to the moderate income household was less than the fair market value of the home at the time of initial sale. The county shall use this share of appreciation for any of the purposes described in subdivision of Health and Safety Code Section 33334.2(e).

E.

Rental Requirements. In the case of rental housing developments, the density bonus housing agreement shall provide for the following requirements during the use restriction period:

1.

Rules and procedures for qualifying each tenant, determining affordable rents, filling vacancies and retaining affordable units for qualified tenants.

2.

Provisions requiring owners to verify tenant incomes and maintain books and records to demonstrate compliance with this section.

3.

Provisions requiring owners to submit an annual report to the county, including the name, address and income of each person occupying an affordable unit and the bedroom size and monthly rent or cost of each affordable unit.

F.

Child Care Facility Requirements. In the case of child care facilities for which a density bonus or additional incentive is being granted, the density bonus housing agreement shall provide for the following requirements:

1.

Operating duration requirements for the child care facility, such that the child day care facility shall remain in operation for as long as or longer than the period of time during which the density bonus units are required to remain affordable.

2.

Provisions requiring that for children who attend the child care facility, the percentage of children from the income group associated with the development's affordable units shall be equal to or greater than the minimum percentage of affordable units that shall be provided for that income group in order to receive a density to the requirements of this section.

(Ord. No. 669, § 1 (Exh. A), 5-19-14).