Mill Valley City Zoning Code
CHAPTER 20
81 DENSITY BONUS
§ 20.81.010 Purpose and intent.
The purpose of this chapter is to provide incentives for the production of specific housing types for populations, including, but not limited to, very low income, lower income, moderate income, and senior households, in accordance with Government Code Section 65915, commonly referred to as the State Density Bonus Law. In enacting this chapter, it is the intent of the City to facilitate the development of the goals, objectives, and policies of the housing element of the City's general plan.
(Ord. 1266 § 1, December 1, 2014; Ord. 1355, 9/16/2024)
§ 20.81.020 Definitions.
For the purposes of this chapter, the following words and phrases shall be interpreted as set forth in this section, unless these definitions have been amended in Government Code Section 65915 in which case state law shall control.
"Affordable units"
means units within a residential development which will be reserved for sale or rent to, and made available at an affordable rent or affordable ownership cost to very low, lower or moderate income households.
"Childcare facility,"
as defined in Government Code Section 65915(h)(4), means a child day care facility other than a family day care home, including, but not limited to, infant centers, preschools, extended day care facilities, and school-age childcare centers.
"Density bonus,"
as defined in Government Code Section 65915(f), means a density increase over the otherwise maximum allowable residential density as of the date of application by the applicant to the City.
"Development standard,"
as defined in Government Code Section 65915(o)(2), includes a site or construction condition, including, but not limited to, a height limitation, a setback requirement, a floor area ratio, an on-site open-space requirement, or a parking ratio that applies to a residential development pursuant to any ordinance, general plan element, specific plan, or other local condition, law, policy, resolution, or regulation.
"Granting authority"
means the Building Official, Director, Zoning Administrator, Planning Commission, or City Council, as the case may be.
"Household income levels"
means those households whose gross incomes do not exceed the qualifying very low, lower, and moderate income limits established in 25 C.C.R. Section 6932, and amended periodically based on the U.S. Department of Housing and Urban Development ("HUD") estimate of median income in Marin County, and as adjusted by the State Department of Housing and Community Development. Pursuant to 25 C.C.R. Sections 6926, 6928 and 6930, these income limits are equivalent to the following:
1.
"Very low income household" means persons and families whose gross incomes do not exceed 50% of area median income, adjusted for household size appropriate for the unit and other factors determined by HUD.
2.
"Lower income household" means persons and families whose gross incomes do not exceed 80% of area median income, adjusted for household size appropriate for the unit and other factors determined by HUD.
3.
"Moderate income household" means persons and families whose gross incomes do not exceed 120% of area median income, adjusted for household size appropriate for the unit and other factors determined by HUD.
"Housing development,"
as defined in Government Code Section 65915(i), means a development project for five or more residential units. For the purposes of this chapter, "housing development" also includes a subdivision or common interest development, as defined in Civil Code Section 4100, as approved by the City, and consists of residential units or unimproved residential lots and either a project to substantially rehabilitate and convert an existing commercial building to residential use or the substantial rehabilitation of an existing multifamily dwelling, as defined in Government Code Section 65863.4(d), where the result of the rehabilitation would be a net increase in available residential units. For the purpose of calculating a density bonus, the residential units shall be on contiguous sites that are the subject of one development application, but do not have to be based upon individual subdivision maps or parcels. The density bonus shall be permitted in geographic areas of the housing development other than the areas where the units for the lower income households are located.
"Maximum allowable residential density,"
as defined in Government Code Section 65915(o)(6), means the greatest number of units allowed under the zoning ordinance, specific plan, or land use element of the general plan, or, if a range of density is permitted, the greatest number of units allowed by the specific zoning range, specific plan, or land use element of the general plan applicable to the project. If the applicable zoning ordinance, specific plan, or land use element of the general plan does not include a standard for density in dwelling units per acre, the developer shall prepare a base density study to calculate the number of base units pursuant to the provisions of Government Code Section 65915(o)(6).
"Shared housing building"
as defined in Government Code Section 65915(o)(7)(A)(i) means a residential or mixed-use structure, with five or more shared housing units and one or more common kitchens and dining areas that are designed for permanent residence of more than 30 days by its tenants. The kitchens and dining areas within the shared housing building must adequately accommodate all residents. Such a "shared housing building" may include other dwelling units that are not shared housing units, so long as those dwelling units do not occupy more than 25% of the floor area of the shared housing building. A shared housing building may include 100% shared housing units.
"Shared housing unit"
as defined in Government Code Section 65915(o)(7)(B) means one or more habitable rooms, not within another dwelling unit, which includes a bathroom, sink, refrigerator, and microwave, and is used for permanent residence.
(Ord. 1266 § 1, December 1, 2014; Ord. 1355, 9/16/2024)
§ 20.81.030 Applicability and general provisions.
A.
This chapter shall apply to all zoning districts within the City that allow residential use.
B.
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 dwelling units.
2.
The applicant seeks and agrees to construct housing units for very-low, lower or moderate income households or senior citizens as required by Government Code 65915.
3.
The applicant agrees to enter into an agreement with the City to retain the affordable status of housing units in accordance with Section 20.81.050 and such agreement shall be recorded as a covenant against the property prior to receiving a building permit for any project that receives a density bonus or any incentive, concession, waiver, or reduction of development standards or parking ratios pursuant to this section.
C.
The granting of a density bonus, incentive or concession, waiver or reduction of development standards, or parking ratio reduction, in and of themselves, shall not be interpreted to require a General Plan amendment, Zoning Map amendment, or other discretionary action for approval.
(Ord. 1266 § 1, December 1, 2014; Ord. 1355, 9/16/2024)
§ 20.81.040 Application requirements.
A.
Applications for a density bonus shall be filed with the Director of Planning and Building in writing on a form approved by the Director. The application and request for a density bonus, parking ratio reduction, waiver(s), and/or incentive(s) or concession(s) shall be filed concurrently with the main application for the proposed development.
B.
At the time the application is submitted, the applicant shall pay a density bonus application fee, established by resolution of the City Council.
C.
The density bonus application shall include all of the following:
1.
Documentation of Requested Density Bonus.
a.
Evidence that the project includes the qualifying percentage of residential units set forth in Government Code Section 65915, excluding the additional units added by the granted density bonus. Evidence shall include the number of affordable units proposed to be included and the income category proposed for each of the affordable units;
b.
The gross parcel size in acres, the maximum dwelling unit per acre standard based on the land use and zoning for the parcel, and the resulting maximum number of dwelling units for the parcel based on gross parcel size in acres;
c.
The percentage density bonus and number of density bonus units requested, and the resulting density for the project, described in units per acre; and
d.
A written acknowledgement that the project will be subject to the affordability restrictions set forth in Section 20.81.050.
2.
Documentation of Requested Incentives or Concessions.
a.
The density bonus application shall include the number of incentives/concessions for which the application qualifies, the number of incentives/concessions requested, and a description of each of the requested incentives/concessions.
b.
The application should explain how each requested incentive/concession results in identifiable and actual cost reductions to provide for affordable housing costs, as defined in Section 50052.5 of the Health and Safety Code, or for rents for the affordable units.
3.
Documentation of Requested Waivers. The density bonus application shall document any requests to deviate from development standards.
4.
Documentation of Parking Ratio Reductions. The density bonus application shall document any request for parking ratio reductions and shall identify which subdivision of state law authorizes the particular parking ratio reduction requested.
(Ord. 1266 § 1, December 1, 2014; Ord. 1355, 9/16/2024)
§ 20.81.050 Affordability restrictions.
A.
Rental Units. An applicant shall agree to, and the City shall ensure, continued affordability of all very low-, low- and moderate-income rental units that qualified the applicant for the award of the density bonus for 55 years or a longer period of time if required by the construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy program. Except as otherwise required by state law, rents for the lower income density bonus units shall be set at an affordable rent, as defined in Health and Safety Code Section 50053.
B.
For-Sale Units. An applicant shall agree to, and the City shall ensure, that the for-sale unit(s) that qualified the applicant for the award of the density bonus meet one of the affordability conditions identified in state law.
(Ord. 1266 § 1, December 1, 2014; Ord. 1355, 9/16/2024)
§ 20.81.060 Density bonus allowance.
A.
Except as otherwise may apply by virtue of Section 20.81.120 or 20.81.130, a request for a density bonus pursuant to this chapter shall be granted only if the applicant agrees to construct a residential project that includes at least one of the categories of deed restricted dwelling units identified in Government Code Section 65915(b)(1).
B.
The applicant shall elect whether the bonus shall be awarded on the basis of subparagraphs (A) through (G) of Government Code Section 65915(b)(1), and may elect to accept a lesser percentage of density bonus than provided in Government Code Section 65915(f).
C.
Except where explicitly required by state law, the density bonuses available under this section shall not be combined.
D.
All density calculations resulting in fractional units shall be rounded up to the next whole number.
(Ord. 1266 § 1, December 1, 2014; Ord. 1355, 9/16/2024)
§ 20.81.070 Incentives and concessions.
A.
In addition to the density bonus, an applicant who utilizes the density bonus provisions of this chapter may request one or more concession(s) or incentive(s), as allowed by state law.
B.
The City shall grant the applicant the number of incentive(s) and concession(s) required by Government Code Section 65915. The City shall grant the specific concession(s) or incentive(s) requested by the applicant, unless it makes any of the relevant written findings stated in Government Code Section 65915(d).
C.
Senior citizen housing developments that qualify for a density bonus shall not receive any incentives or concessions, unless Government Code Section 65915 is amended to specifically require that local agencies grant incentives or concessions for senior citizen housing developments.
(Ord. 1266 § 1, December 1, 2014; Ord. 1355, 9/16/2024)
§ 20.81.075 Waivers or reductions of development standards.
A.
Except as restricted by Government Code Section 65915, the applicant for a density bonus may submit a proposal requesting waiver(s) or reduction(s) of development standards that have the effect of physically precluding the construction of a housing development including the affordable units and incorporating the density bonus and any incentives or concessions granted to the applicant.
B.
The City shall approve a waiver or reduction of a development standard, unless it finds at least one of the following:
1.
The waiver(s) application of the development standard does not have the effect of physically precluding the construction of a housing development at the density allowed by the density bonus and with the waiver(s) granted to the applicant;
2.
The waiver(s) or reduction(s) of the development standard would have a specific, adverse impact, as defined in paragraph (2) of subdivision (d) of Section 65589.5, upon health, safety, or the physical environment, and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact;
3.
The waiver or reduction of the development standard would have an adverse impact on any real property that is listed in the California Register of Historical Resources; or
4.
The waiver or reduction of the development standard would be contrary to State or Federal law.
(Ord. 1355, 9/16/2024)
§ 20.81.080 Review and approval of density bonus application.
A.
City staff shall process the application for a density bonus in the same manner as, and concurrently with, the proposed development application that is required by this Code.
B.
The City shall provide written notice to the applicant of the decision in the same manner as the approval of the project.
C.
Appeals of any request established in this chapter shall be pursuant to Chapter 20.100.
(Ord. 1266 § 1, December 1, 2014; Ord. 1355, 9/16/2024)
§ 20.81.090 Requirement to replace existing affordable housing.
An applicant shall not receive a density bonus or any other benefit permitted by this chapter if the housing development would be excluded under Government Code Section 65915, which includes, but is not limited to, projects that fail to "replace" existing housing units, as required by state law.
(Ord. 1266 § 1, December 1, 2014; Ord. 1355, 9/16/2024)
§ 20.81.100 Condominium conversion.
A.
When an applicant for approval to convert apartments to a condominium project agrees to provide at least 33% of the total units of the proposed condominium project to persons and families of low or moderate income as defined in Health and Safety Code Section 50093, or 15% of the total units of the proposed condominium project to lower income households as defined in Health and Safety Code Section 50079.5, and agrees to pay for the reasonably necessary administrative costs incurred by the City pursuant to this section, the City shall either: (1) grant a density bonus; or (2) provide other incentives of equivalent financial value. The City may place such reasonable conditions on the granting of a density bonus or other incentives of equivalent financial value as it finds appropriate, including, but not limited to, conditions which assure continued affordability of units to subsequent purchasers who are persons and families of low and moderate income or lower income households.
B.
For purposes of this section only, "density bonus" means an increase in units of 25% over the number of apartments, to be provided within the existing structure or structures proposed for conversion.
C.
For purposes of this section only, "other incentives of equivalent financial value" shall not be construed to require the City to provide cash transfer payments or other monetary compensation but may include the reduction or waiver of requirements which the City might otherwise apply as conditions of conversion approval.
D.
An applicant for approval to convert apartments to a condominium project may submit to the City a preliminary proposal pursuant to this section prior to the submittal of any formal requests for subdivision map approvals. The City shall, within 90 days of receipt of a written proposal, notify the applicant in writing of the manner in which it will comply with this section. The City shall establish procedures for carrying out this section, which shall include approval by the City Council of the means of compliance with this section.
E.
Nothing in this section shall be construed to require the City to approve a proposal to convert apartments to condominiums.
F.
An applicant shall be ineligible for a density bonus or other incentives under this section if the apartments proposed for conversion constitute a housing development for which a density bonus or other incentives were provided under any other section of this chapter.
G.
An applicant shall be ineligible for a density bonus or any other incentives or concessions under this section if the condominium project is proposed on any property that includes a parcel or parcels on which rental dwelling units are or, if the dwelling units have been vacated or demolished in the five-year period preceding the application, have been subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of lower or very low income; subject to any other form of rent or price control through the City's valid exercise of its police power; or occupied by lower or very low income households, unless the proposed condominium project replaces those units, as defined in Government Code Section 65915(c)(3)(B), and either of the following applies:
1.
The proposed condominium project, inclusive of the units replaced pursuant to Government Code Section 65915(c)(3)(B), contains affordable units at the percentages set forth in subsection A.
2.
Each unit in the development, exclusive of a manager's unit or units, is affordable to, and occupied by, either a lower or very low income household.
(Ord. 1266 § 1, December 1, 2014; Ord. 1355, 9/16/2024)
§ 20.81.110 Alternative parking standards.
A.
The applicant for a project that qualifies for a density bonus under Government Code Section 65915 may request, and the City shall grant, a reduction in parking requirements in accordance with Government Code Section 65915(p), as stated below or as amended in state law.
1.
Zero to one bedroom units: one on-site parking space per unit.
2.
Two to three bedroom units: one and one-half on-site parking spaces per unit.
3.
Four and more bedrooms: two and one-half on-site parking spaces per unit.
B.
The parking ratios set forth in this section are inclusive of accessible and guest parking spaces.
C.
All fractions of numbers shall be rounded up.
D.
An applicant may use tandem or uncovered parking spaces to meet these parking requirements.
E.
An applicant may request alternative parking standards beyond those provided in this section pursuant to state law or pursuant to Sections 20.81.070 and 20.81.075 of this Code.
(Ord. 1266 § 1, December 1, 2014; Ord. 1355, 9/16/2024)
§ 20.81.120 Design and quality.
A.
For any housing development that is granted a density bonus or other benefit pursuant to this chapter, the affordable units that qualify the project as eligible for a density bonus must be constructed concurrently with or prior to the construction of any market rate units.
B.
In addition, the affordable units must be integrated with the market rate units so that there is a mix of affordable and market rate units, if any, in each building of the development project. The number of bedrooms of the affordable unit(s) shall be equivalent to the bedroom mix of the market rate units in the development.
C.
Exterior architectural appearance shall not differentiate between affordable and market rate units.
(Ord. 1266 § 1, December 1, 2014; Ord. 1355, 9/16/2024)
§ 20.81.130 Child care facilities.
A.
When the applicant proposes to construct a housing development that includes a "child-care facility," as defined in this chapter, to be located on the premises of, part of, or adjacent to the housing development, the City shall grant an additional density bonus or additional incentives, concessions and/or waivers, as prescribed in Government Code Section 65915(h).
B.
Approval of requests contained in subsection A above shall be governed by state regulations contained in Government Code Section 65915.
C.
Notwithstanding the foregoing, the City shall not be required to grant a density bonus or concession under this section if it determines, based on substantial evidence, that the community has adequate childcare facilities.
(Ord. 1266 § 1, December 1, 2014; Ord. 1355, 9/16/2024)
§ 20.81.140 Land donations.
A.
An applicant for a tentative subdivision map, parcel map, or other residential development who donates land to the City, as provided for in this section, shall be entitled to a density bonus as contained in Government Code Section 65915(g).
B.
When calculating the number of permitted density bonus units, any calculations resulting in fractional units shall be rounded to the next whole number.
C.
An applicant shall be eligible for the increased density bonus described in this section when all of the requirements established in Government Code Section 65915(g) are met.
(Ord. 1266 § 1, December 1, 2014; Ord. 1355, 9/16/2024)
§ 20.81.150 Conformance to State Density Bonus Law.
The provisions of this chapter shall be interpreted to fulfill the requirements of Government Code Section 65915. Any changes to Government Code Section 65915 shall be deemed to supersede and govern any conflicting provisions contained herein.
(Ord. 1266 § 1, December 1, 2014; Ord. 1355, 9/16/2024)
