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Monte Sereno City Zoning Code

CHAPTER 10

24 - DENSITY BONUS AND OTHER INCENTIVES

Sections:


10.24.010 - State incentives for affordable housing—Density bonus.

This Section describes those density bonuses provided pursuant to Chapter 4.3 (commencing with Section 65915) of Division 1 of Title 7 of the Government Code. These density bonuses shall be provided, at the request of an applicant, when that applicant provides target units and otherwise complies with the requirements of this Chapter.

A.

A residential project resulting in a net increase of at least five (5) dwelling units is eligible for a density bonus of twenty percent (20%) if the applicant seeks and agrees to construct any of the following:

1.

At least ten percent (10%) of the total dwelling units of the residential project as target units affordable to low income households at an affordable rent or affordable sales price; or

2.

At least five percent (5%) of the total dwelling units of the residential project as target units affordable to very low income households at an affordable rent or affordable sales price; or

3.

A senior citizen residential project.

B.

A residential project resulting in a net increase of at least five (5) dwelling units is eligible for a density bonus of five percent (5%) if the applicant seeks and agrees to provide all of the following:

1.

At least ten percent (10%) of the total dwelling units of the residential project as target units for sale to moderate income households at an affordable sales price; and

2.

The residential project is a common interest development as defined by Civil Code Section 1351; and

3.

All of the dwelling units in the residential project are offered to the public for purchase.

C.

The density bonus for which the residential project is eligible shall increase if the percentage of very low income, low income, or moderate income target units exceeds the base percentages established in Subsections A and B above, as follows:

1.

For each one percent (1%) increase above five percent (5%) in the percentage of target units affordable to very low income households, the density bonus shall be increased by two and one-half percent (2.5%), up to a maximum of thirty-five percent (35%).

2.

For each one percent (1%) increase above ten percent (10%) in the percentage of target units affordable to low income households, the density bonus shall be increased by one and one half percent (1.5%), up to a maximum of thirty-five percent (35%).

3.

For a residential project that is a qualified common interest development pursuant to Subsection B above, for each one percent (1%) increase above five percent (5%) in the percentage of target units for sale to moderate income households at an affordable sales price, the density bonus shall be increased by one percent (1%), up to a maximum of thirty-five percent (35%).

The following table summarizes available State density bonuses:

State Density Bonuses (California Government Code Section 65915)

Affordability Category Minimum %
Target Units
Bonus Granted Additional
Bonus for
Each 1%
Increase in
Target Units
% Target
Units Required
for Maximum
35% Bonus
Very Low-Income 5% 20% 2.5% 11
Low-Income 10% 20% 1.5% 20%
Moderate-Income (for-sale, common interest development only) 10% 5% 1% 40%
Senior Citizen Residential Project 100% 20%

 

D.

Calculation of State density bonuses is subject to the following provisions:

1.

Each residential project is entitled to only one (1) density bonus. Where a residential project qualifies for a State density bonus under more than one (1) category as described in Aubsections A through C above, the category pursuant to which the density bonus shall be granted shall be elected by the applicant, and density bonuses from more than one (1) category may not be combined.

2.

In determining the number of density bonus units to be granted pursuant to this Section, any fractions of dwelling units shall be rounded to the next whole number.

3.

Density bonus units authorized by this Section shall not be included when determining the number of target units required to qualify for the density bonus. When calculating the required number of target units, any calculations resulting in fractional dwelling units shall be rounded to the next whole number.

4.

The applicant may request a lesser density bonus than the residential project is entitled to, but no reduction will be permitted in the percentages of required target units pursuant to Subsections A and B above. Regardless of the number of target units, no residential project shall be entitled to a density bonus of more than thirty-five percent (35%).

E.

Target units shall conform to the following standards:

1.

Moderate income target units shall remain restricted and affordable to moderate income households for a period of forty (40) years (or a longer period of time if required by a construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy program). Very low and low income target units shall remain restricted and affordable to the designated group for a period of thirty (30) years (or a longer period of time if required by a construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy program). Except as set forth in this Subsection E, all target units shall conform with the provisions for continued affordability included in Section 10.24.020.

2.

Target units shall be comparable in number of bedrooms, exterior appearance and overall quality of construction to market rate units in the same residential project. Target units shall be dispersed throughout the residential project, or, subject to the approval of the Planning Director, may be clustered within the residential project when this furthers affordable housing opportunities.

F.

Certain other types of development activities are specifically eligible for a density bonus:

1.

A residential project may be eligible for a density bonus in return for land donation pursuant to the requirements set forth in Government Code Section 65915(g).

2.

Condominium conversions may be eligible for a density bonus or incentive pursuant to the requirements set forth in Government Code Section 65915.5.

(Ord. No. NS-182, § 1, 7-17-2012)

10.24.020 - State incentives for affordable housing—State-defined incentives.

This Section includes provisions for providing incentives pursuant to Chapter 4.3 (commencing with Section 65915) of Division 1 of Title 7 of the Government Code.

A.

An applicant may request incentives pursuant to this Section only when the residential project is eligible for, and the applicant requests, a density bonus pursuant to Section 10.24.010.

B.

For the purposes of this Section 10.24.020, an incentive means the following:

1.

A reduction of development standards or architectural design requirements which exceed the minimum applicable building standards approved by the State Building Standards Commission pursuant to Part 2.5 (commencing with Section 18901) of Division 13 of the Health and Safety Code, including, but not limited to, setback, coverage, and/or parking requirements, which result in identifiable, financially sufficient, and actual cost reductions, based upon appropriate financial analysis and documentation.

2.

Other regulatory incentives proposed by the applicant or the County which result in identifiable, financially sufficient, and actual cost reductions, based upon appropriate financial analysis and documentation if required by County.

C.

A residential project is eligible for incentives as follows:

1.

One incentive for residential projects that include at least ten percent (10%) of the total dwelling units as target units affordable to low income households, at least five percent (5%) of the total dwelling units as target units affordable to very low income households, or at least ten percent (10%) of the total dwelling units in a qualified common interest development as target units affordable to moderate income households.

2.

Two (2) incentives for residential projects that include at least twenty percent (20%) of the total dwelling units as target units affordable to low income households, at least ten percent (10%) of the total dwelling units as target units affordable to very low income households, or at least twenty percent (20%) of the total dwelling units in a qualified common interest development as target units affordable to moderate income households.

3.

Three (3) incentives for residential projects that include at least thirty percent (30%) of the total dwelling units as target units affordable to low income households, at least fifteen percent (15%) of the total dwelling units as target units affordable to very low income households, or at least thirty percent (30%) of the total dwelling units in a qualified common interest development as target units affordable to moderate income households.

The following table summarizes requirements for incentives:

State Incentives (California Government Code Section 65915)

Affordability Category % of Target units
Very low income 5% 10% 15%
Low income 10% 20% 30%
Moderate-income (for sale common interest development only) 10% 20% 30%
Maximum Incentive(s) 1 2 3
Notes:
(A) An incentive may be requested only if an application is also made for a density bonus.
(B) Incentives may be selected from only one (1) category (very low, low, or moderate).
(C) No incentives are available for land donation or a senior citizen residential project (if not affordable).
(D) Condominium conversions and day care centers may have one (1) incentive or a density bonus at the County's option, but not both.

 

E.

If a residential project is eligible for a density bonus pursuant to Section 10.24.010, the applicant may request an on-site vehicular parking ratio, inclusive of handicapped and guest parking, pursuant to Government Code Section 65915(p), as follows:

1.

Zero to one (1) bedroom dwelling unit: One (1) on-site parking space.

2.

Two (2) to three (3) bedroom dwelling unit: Two (2) on-site parking spaces.

3.

Four (4) or more bedroom dwelling unit: Two and one-half (2.5) on-site parking spaces.

This request may be in addition to any incentives permitted by Subsection C. On-site parking may include tandem and uncovered parking, but not on-street parking.

F.

An applicant may seek a waiver of any development standards that will physically preclude the construction of a residential project with the requested density bonus and incentives permitted by this Chapter. The applicant shall bear the burden of demonstrating that the development standards that are requested to be waived will have the effect of physically precluding the construction of the residential project with the density bonus and incentives.

G.

Nothing in this Section requires the provision of direct financial incentives for the residential project, including, but not limited to, the provision of financial subsidies, publicly owned land, fee waivers, or waiver of dedication requirements. The City, at its sole discretion, may choose to provide such direct financial incentives.

(Ord. No. NS-182, § 1, 7-17-2012)

10.24.030 - State incentives for affordable housing—Application procedures.

A.

An applicant intending to request a State density bonus or any incentives, parking reductions, or waivers pursuant to Section 10.24.010 or Section 10.24.020 shall submit a preliminary application prior to the submittal of any formal application for approval of the residential project and shall schedule a pre-application conference with the Planning Director or designated staff. The preliminary application shall include the following information:

1.

A brief description of the proposed residential project, including the total number of dwelling units, target units by proposed income level, density bonus units proposed, and any incentives, reduced parking, or waivers requested.

2.

The zoning and general plan designations and assessors parcel number(s) of the residential project site.

3.

A vicinity map and preliminary site plan, drawn to scale, including building footprints, driveway(s), and parking layout.

4.

An explanation of why any requested incentives are necessary to provide the target units.

B.

All requests for density bonuses, incentives, parking reductions, and/or waivers pursuant to Section 10.24.010 or Section 10.24.020 shall be submitted concurrently with the application for the first discretionary permit or other permit required for the residential project and shall be processed concurrently with such application. In accordance with State law, neither the granting of an incentive, nor the granting of a density bonus, shall be interpreted, in and of itself, to require a general plan amendment, zoning change, or other discretionary approval.

C.

An applicant's request for any density bonuses, incentives, parking reductions, and/or waivers permitted by this Chapter shall include the following information:

1.

A site plan depicting the number and location of all proposed market rate units, target units, and density bonus units, if any.

2.

A calculation of the maximum number of dwelling units permitted by the City's zoning ordinance and general plan for the residential project, excluding any density bonus units.

3.

The income level of the proposed target units.

4.

A description of any requested incentives, waivers of development standards, or parking reductions.

5.

The applicant shall demonstrate through the provision of pro forma that any requested incentive results in identifiable, financially sufficient, and actual cost reductions to the residential project. The cost of reviewing any required pro forma data, including, but not limited to the cost to the County of hiring a consultant to review the pro forma, shall be borne by the applicant. The pro forma shall include all of the following items:

a.

The actual cost reduction achieved through the incentive;

b.

Evidence that the cost reduction allows the applicant to provide affordable rents or affordable sales prices; and

c.

Other information as may be requested by the Planning Director. The Planning Director may require that any pro forma include information regarding capital costs, equity investment, debt service, projected revenues, operating expenses, and such other information as is required to evaluate the pro forma.

6.

For any requested waiver of a development standard, the applicant shall provide evidence that the development standard for which the waiver is requested will have the effect of physically precluding the construction of the residential project with the density bonus and incentives requested.

7.

If a density bonus is requested for a land donation, the applicant shall show the location of the land to be dedicated, provide proof of site control, and provide evidence that each of the requirements included in Government Code Section 65915(g) can be met.

8.

If a density bonus or incentive is requested for a child care facility, the applicant shall provide evidence that all of the requirements found in Government Code Section 65915(h) can be met.

9.

If a density bonus or incentive is requested for a condominium conversion, the applicant shall provide evidence that all of the requirements found in Government Code Section 65915.5 can be met.

(Ord. No. NS-182, § 1, 7-17-2012)

10.24.040 - State incentives for affordable housing—Review procedures.

All requests for density bonuses, incentives, parking reductions, and/or waivers permitted by Section 10.24.010 or Section 10.24.020 shall be considered and acted upon by the City Council.

A.

Before approving an application that includes a request for a density bonus, incentive, parking reduction and/or waiver pursuant to Section 10.24.010 or Section 10.24.020, the decision-making body shall make the following findings, as applicable:

1.

A finding that the residential project is eligible for the density bonus and any incentives, parking reductions or waivers requested.

2.

A finding that any requested incentive will result in identifiable, financially sufficient, and actual cost reductions based upon the financial analysis and documentation provided.

3.

If the density bonus is based all or in part on donation of land, a finding that all the requirements included in Government Code Section 65915(g) have been met.

4.

If the density bonus or incentive is based all or in part on the inclusion of a child care facility, a finding that all the requirements included in Government Code Section 65915(h) have been met.

5.

If a waiver is requested, a finding that the development standards for which the waiver is requested would have the effect of physically precluding the construction of the residential project with the density bonus and incentives permitted.

B.

If the findings required by Subsection A of this Section can be made, the City Council may deny an application for an incentive requested pursuant to Section 10.24.020 only if it makes one (1) of the following written findings, supported by substantial evidence:

1.

That the incentive is not required to provide for affordable rents or affordable sales prices; or

2.

That the incentive would have a specific, adverse impact upon public health or safety or the physical environment or on real property listed in the California Register of Historic Resources, and there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact without rendering the residential project unaffordable to low and moderate income households. For the purpose 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 for the residential project was deemed complete; or

3.

That the incentive is contrary to State or Federal law.

C.

If the findings required by Subsection A of this Section can be made, the decision-making body may deny a request for a waiver only if it makes one (1) of the following written findings, supported by substantial evidence:

1.

That the waiver would have a specific, adverse impact upon public health or safety or the physical environment, and there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact without rendering the residential project unaffordable to low and moderate income households. For the purpose 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 for the residential project was deemed complete; or

2.

That the waiver would have an adverse impact on real property listed in the California Register of Historic Resources; or

3.

That the waiver is contrary to State or Federal law.

D.

If the findings required by Subsection A of this Section can be made, the decision-making body may deny an application for a density bonus or incentive that is based on the provision of child care only if it makes a written finding, based on substantial evidence, that the County already has adequate child care facilities.

E.

If any density bonus, incentive, parking reduction, or waiver is approved pursuant to Section 10.24.010 or Section 10.24.020 for a residential project, the applicant shall enter into an affordable housing agreement with the County, in a form acceptable to the Planning Director and City Attorney. The affordable housing agreement shall be a legally binding agreement between the applicant and the City to ensure that the requirements of this Chapter are satisfied. The executed affordable housing agreement shall be recorded against the residential project prior to final or parcel map approval, or, where a map is not being processed, prior to issuance of building permits for the residential project. The affordable housing agreement shall be binding on all future owners and successors in interest.

F.

Unless otherwise permitted pursuant to the terms of a recorded affordable housing agreement, all required target units shall be constructed prior to or concurrently with the construction of market rate units. No temporary or permanent certificate of occupancy for any new market rate unit in a residential project shall be issued until permanent certificates of occupancy have been issued for the required target units. Release of utilities shall not be authorized for any residential project until notification is received from the Planning Director that all requirements of this Chapter have been met.

(Ord. No. NS-182, § 1, 7-17-2012)

10.24.050 - General—No conflict with State law.

If any Section of this Chapter conflicts with Government Code Section 65915 or other applicable State law, State law shall supersede this Chapter.

(Ord. No. NS-182, § 1, 7-17-2012)