The purpose of this chapter is to implement California Government Code sections 65915 through 65917. These regulations are intended to work in conjunction with the requirements of the County's Inclusionary Housing Ordinance (Chapter 18.40 of the Monterey County Code) and shall not be interpreted to alter or in any way diminish the requirements of the Inclusionary Housing Ordinance.

(Ord. No. 5177, § 55, 5-24-2011)

The provisions of this chapter are applicable in all residential zoning districts.

(Ord. No. 5177, § 55, 5-24-2011)

The following definitions shall apply for the purposes of this chapter:

A.

"Affordable rent" means a monthly amount which, together with utility allowance, does not exceed the following:

1.

For very low income qualifying units, one-twelfth ( 1/12 ) of thirty (30) percent of the maximum income for a very low income household, adjusted by household size.

2.

For low income qualifying units, one-twelfth ( 1/12 ) of thirty (30) percent of sixty (60) percent of median income, adjusted for household size.

3.

For moderate income qualifying units, one-twelfth ( 1/12 ) of thirty (30) percent of one hundred ten (110) percent of median income, adjusted for household size.

B.

"Affordable sales price" means a sales price at which moderate, low or very low income households can qualify for the purchase of qualifying units, calculated on the basis of the same underwriting criteria utilized by the County for the County's Inclusionary Housing Ordinance.

C.

"Base units" means the number of units that would be allowed under the General Plan land use designation and zoning ordinance for the subject site before calculation of the density bonus.

D.

"Child care facility" means a facility, other than a day care home, licensed by the State of California to provide non-medical care to children under eighteen (18) years of age in need of personal services, supervision or assistance on less than a 24-hour basis.

E.

"Density bonus" means an increase in density over the otherwise maximum allowable residential density under the applicable zoning ordinance and General Plan land use designation taking into account all applicable limitations.

F.

"Density bonus housing agreement" means a legally binding agreement between the County and an applicant, governing how the applicant shall comply with this chapter.

G.

"Household" means one or more individuals who occupy one dwelling unit.

H.

"Housing development" means a project providing residential units including, without limitation, a subdivision, a planned unit development, multifamily dwellings, or condominium project. Housing developments consist of development of residential units or creation of unimproved residential lots and also include either a project to substantially rehabilitate and convert an existing commercial building to residential use or the substantial rehabilitation of an existing multifamily dwelling, where the result of the rehabilitation would be a net increase in available residential units.

I.

"Incentive" means enticements for providing affordable housing proposed by the developer or the County that result in identifiable, financially sufficient, and actual cost reductions for a qualified housing development.

J.

"Inclusionary unit" means a dwelling unit which is restricted for affordability pursuant to the County's Inclusionary Housing Ordinance.

K.

"Low income household" or lower income household" means a household, with an annual income which does not exceed the United States Department of Housing and Urban Development annual determination for low income households with incomes of up to eighty (80) percent of the median income, adjusted for household size.

L.

"Low income unit" or "lower income unit" means a qualifying unit or inclusionary unit reserved for occupancy by low income households at an affordable rent or sales price.

M.

"Maximum allowable residential density" means the density allowed under the General Plan, or if a range of density is permitted, means the maximum allowable density for the specific zoning range applicable to the project. Maximum allowable residential density takes into account limitations to density pursuant to General Plan policies and Zoning Ordinance regulations.

N.

"Median income" means the median income as determined periodically by the United States Department of Housing and Urban Development for the Salinas Metropolitan Statistical Area and updated on an annual basis.

O.

"Moderate income household" means a household, with an annual income which does not exceed the United States Department of Housing and Urban Development annual determination for moderate income households with incomes of one hundred twenty (120) percent of the median income, adjusted for household size.

P.

"Moderate income unit" means a qualifying unit or inclusionary unit reserved for occupancy by moderate income households at an affordable rent or sales price.

Q.

"Qualifying unit" means a dwelling or dwellings designated for occupancy by very low, low, or moderate income households, within a housing development, which make the housing development eligible for a density bonus.

R.

"Senior citizen housing development" means a housing project where residency is restricted to persons sixty-two (62) years of age or older, or fifty-five (55) years of age or older and that is designed to meet the physical and social needs of senior citizens. A housing development shall be presumed to meet those needs when it does the following:

1.

Entryways, walkways, and hallways in the common areas of the development, and doorways and paths of access to and within the housing units, shall be as wide as required by current laws applicable to new multifamily housing construction for provision of access to persons using a standard-width wheelchair.

2.

Walkways and hallways in the common areas of the development shall be equipped with standard height railings or grab bars to assist persons who have difficulty with walking.

3.

Walkways and hallways in the common areas shall have lighting conditions which area of sufficient brightness to assist persons who have difficulty seeing.

4.

Access to all common areas and housing units within the development shall be provided without use of stairs, either by means of an elevator or sloped walking ramps.

5.

The development shall be designed to encourage social contact by providing at least one common room and at least some common open space.

6.

Refuse collection shall be provided in a manner that requires a minimum of physical exertion by residents; and

7.

The development complies with all the applicable requirements for accessibility.

S.

"Very low income household" means a household with an annual income which does not exceed the United States Department of Housing and Urban Development annual determination for very Low Income Households earning fifty (50) percent of the median income, adjusted for household size.

T.

"Very low income unit" means a qualifying unit or inclusionary unit reserved for occupancy by very low income households at an affordable rent or sales price.

(Ord. No. 5177, § 55, 5-24-2011)

An applicant who is seeking a density bonus for a housing development shall submit to the Planning Department the following information:

A.

A site plan that identifies all units in the project including the location of all base units, qualifying units and inclusionary units.

B.

A narrative briefly describing:

1.

The project;

2.

The number of base units permitted under the General Plan and zoning;

3.

The number of qualifying units based on density bonus criteria of this chapter;

4.

The total number of units proposed in the project (base units plus density bonus units);

5.

A breakdown of units proposed for very low, low, and moderate income, senior citizen, and/or market rate units;

6.

Any requested incentive(s) including an explanation as to why the incentive(s) is required for the housing development; and

7.

A description of how the proposal complies with the requirements of the Inclusionary Housing Ordinance (Chapter 18.40).

C.

Information demonstrating that appropriate and sufficient infrastructure capacity (e.g. water, sewer, roadway) and water supply are available to serve the project at the density proposed.

D.

At the option of the applicant, a written request to meet with the County to discuss applicant's density bonus and incentives request including any request for a waiver or reduction of development standards.

E.

Any such additional information as may be requested by the Director of Planning or the Director of the Redevelopment and Housing Office to evaluate the request for a density bonus or incentive(s). This additional information may include but is not limited to financial studies.

(Ord. No. 5177, § 55, 5-24-2011)

An application for a housing development containing five (5) or more residential units shall qualify for a density bonus and at least one other incentive as provided by this chapter if the applicant does one or more of the following:

A.

Agrees to construct and maintain at least five (5) percent of the base units for very low income households;

B.

Agrees to construct and maintain at least ten (10) percent of the base units for low income households;

C.

Agrees to construct and maintain at least ten (10) percent of the base units in a condominium project or planned development project dedicated to moderate income households, provided that all units in the development are offered to the public for purchase;

D.

Agrees to construct and maintain a senior citizen housing development;

E.

Donates land to the County for the construction of very low income units pursuant to the provisions of this chapter; or

F.

Includes a qualifying child care facility in addition to providing housing described in Subsections A, B, or C of this section.

(Ord. No. 5177, § 55, 5-24-2011)

A.

The granting of a density bonus or the granting of a density bonus together with an incentive(s) shall not be interpreted, in and of itself, to require a General Plan amendment, specific plan amendment, rezone, or other discretionary approval.

B.

An applicant must choose a density bonus from only one applicable affordability category of this chapter and may not combine categories, with the exception of a child care facility or land donation. The child care facility or land donation may be combined with an affordable housing development for an additional density bonus up to a combined maximum of thirty-five (35) percent.

C.

The calculation of qualifying units shall be based on the number of base units. In no event shall a density bonus exceed thirty-five (35) percent of base units. A housing development that satisfies all applicable provisions of this chapter shall be allowed the following applicable density bonuses:

1.

The density bonus for very low income units shall be calculated as follows:

2.

The density bonus for low income units shall be calculated as follows:

3.

The density bonus for moderate income units shall be calculated as follows:

4.

Senor citizen housing developments qualify for a twenty (20) percent density bonus.

5.

An applicant for an apartment conversion to a condominium project that provides at least thirty-three (33) percent of the total units of the proposed condominium project to persons and families of low or moderate income, or fifteen (15) percent of the total units of the project to low income households, and agrees to pay for the reasonable necessary administrative costs incurred by the County, qualify for a twenty-five (25) percent density bonus or other incentives of equivalent financial value. An applicant shall be ineligible for a density bonus or other incentives if the apartments proposed for conversion constitute a housing development for which a density bonus or other incentives were provided under the other provisions of this section.

(Ord. No. 5177, § 55, 5-24-2011)

A.

A housing development qualifying for a density bonus is entitled to at least one incentive in addition to the density bonus. Incentives are available for qualifying housing developments as follows:

1.

One incentive for a senior citizen housing development or for a housing development that restricts at least:

a.

Five (5) percent of base units for very low income households;

b.

Ten (10) percent of base units for low income households; or

c.

Ten (10) percent of base units for moderate income households within a condominium project or a planned unit development.

2.

Two (2) incentives for a housing development that restricts at least:

a.

Ten (10) percent of the base units for very low income households;

b.

Twenty (20) percent of the base units for low income households; or

c.

Twenty (20) percent of the base units for moderate income households within a condominium project or a planned unit development.

3.

Three (3) incentives for a housing development that restricts at least:

a.

Fifteen (15) percent of base units for very low income households;

b.

Thirty (30) percent of base units for low income households; or

c.

Thirty (30) percent of base units for moderate income households within a condominium project or a planned unit development.

B.

The Appropriate Authority for the housing development shall grant the incentive unless the Appropriate Authority makes a written finding, based upon substantial evidence, of any of the following:

1.

That the incentive is not necessary in order to provide for affordable housing costs; or

2.

That the incentive would result in specific adverse impacts upon the public health, safety, or the physical environment for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact without rendering the development unaffordable to very low, low, and moderate income households.

3.

That the incentive would be contrary to the County's certified Local Costal Program or State or Federal law.

C.

Where a housing development qualifies for incentives pursuant to this chapter the applicant may request any of the following incentives:

1.

A reduction in site development standards such as:

a.

Reduced minimum lot sizes and/or dimensions;

b.

Reduced minimum setbacks;

c.

Increased lot coverage;

d.

Increased maximum building heights; or

e.

Reduced on-site parking requirements.

2.

Approval of a mixed use zoning in conjunction with the housing development if commercial, office, or other land uses will reduce the cost of the housing development and if the commercial, office or other land uses are compatible with the housing development and the existing or planned development in the area where the proposed housing development will be located; or

3.

Other regulatory incentives proposed by the developer or the County, which result in identifiable, financially sufficient and actual cost reductions.

4.

In addition to the requested incentives above, and not counting toward the eligible number of incentives, any applicant qualifying for a density bonus may request, inclusive of handicapped and guest parking, the following parking ratios:

a.

Zero to one bedrooms: One on-site parking space.

b.

Two (2) to three (3) bedrooms: Two (2) on-site parking spaces.

c.

Four (4) or more bedrooms: Two and one-half (2½) parking spaces.

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

(Ord. No. 5177, § 55, 5-24-2011)

A.

When an applicant proposes a housing development that is eligible for a density bonus under this chapter and includes a child care facility on the premises or adjacent to the housing development, the applicant shall receive an additional density bonus that is in an amount of square feet of residential space that is equal to the square footage of the child care facility; or the applicant may receive another incentive that contributes significantly to the economic feasibility of the construction of the child care facility, provided that, in both cases, the following conditions are incorporated in the conditions of approval for the housing development:

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 affordable units are required to remain affordable pursuant to the terms of the density bonus housing agreement required by Section 21.65.120 of this chapter.

2.

Attendance of children at the child care facility shall have an equal or greater percentage of children from very low, low, and moderate income households than the percentage of affordable units in the housing development.

B.

The County may deny the request for a density bonus or incentive for a child care facility if the County finds, based upon substantial evidence, that the community has adequate child care facilities without the facilities being considered as part of the subject housing development.

(Ord. No. 5177, § 55, 5-24-2011)

A.

When an applicant for a tentative subdivision map, parcel map or other residential development donates land to the County, the applicant shall be entitled to a density bonus above the maximum allowable residential density, up to a maximum of thirty-five (35) percent depending on the amount of land donated. This increase shall be in addition to any increase in density permitted by this chapter up to a maximum combined density increase of thirty-five (35) percent. A density bonus for donation of land shall only be considered if all of the following conditions are met:

1.

The applicant donates and transfers the land no later than the date of approval of the final subdivision map, parcel map, or residential development application.

2.

The developable acreage and zoning classification of the land being transferred are sufficient to permit construction of units affordable to very low income households in the amount not less than ten (10) percent of the residential units in the proposed development.

3.

The transferred land is at least one acre in size or of sufficient size to permit development of at least forty (40) units, has the appropriate general plan designation, is appropriately zoned for development as affordable housing, and is, or will be, served by adequate public facilities and infrastructure. The transferred land shall have appropriate zoning and development standards to make the development of the affordable units feasible. No later than the date of approval of the final subdivision map, parcel map, or of the residential development, the transferred land shall have all of the permits and approvals, other than building permits, necessary for the development of the very low income units on the transferred land, except that the County may subject the proposed development to subsequent design review if the design is not reviewed by the County prior to the time of transfer.

4.

The transferred land and the units constructed on said land shall be subject to a deed restriction ensuring continued affordability of the units for a period of at least thirty (30) years and subject to restrictions consistent with California Government Code Section 65915 (c)(1) and (2), as may be periodically amended.

5.

The land is transferred to the County or to a housing developer approved by the County.

6.

The transferred land shall be within the boundary of the proposed development or, if the County determines appropriate, within one-quarter mile of the boundary of the proposed development.

(Ord. No. 5177, § 55, 5-24-2011)

A.

An applicant may request a meeting with the Planning Department and the Redevelopment and Housing Office of the County prior to the submittal of a development application to discuss incentive requests.

B.

The Appropriate Authority to consider the density bonus is the Appropriate Authority for the qualifying Housing Development of which the density bonus is a component.

C.

The Affordable Housing Overlay (AHO) Zone provides density bonus and other incentives for projects that provide a significant amount of affordable housing. Density bonuses and other development incentives granted pursuant to the AHO zone include the incentives offered in this chapter, and shall not be in addition to the development incentives offered in this chapter.

(Ord. No. 5177, § 55, 5-24-2011)

A.

All residential development shall comply with the Inclusionary Housing Ordinance contained in Chapter 18.40 of the Monterey County Code, and nothing in this chapter relieves an applicant from complying with the Inclusionary Housing Ordinance. The County's granting of a density bonus by itself does not satisfy the applicant's responsibility to comply with the Inclusionary Housing Ordinance.

B.

The total number of inclusionary units is calculated based upon the total number of units within the housing development (base units plus density bonus). The number of qualifying units used to determine eligibility for density bonus is based upon the number of base units.

(Ord. No. 5177, § 55, 5-24-2011)

A.

Qualifying units may be used to satisfy the inclusionary housing requirements of Chapter 18.40 of the Monterey County Code. If qualifying units are applied to the inclusionary housing requirements, those units will be subject to the affordability provisions of the Inclusionary Housing Ordinance. The applicant will be required to enter into an Inclusionary Housing Developer Agreement governing these units pursuant to the County's Inclusionary Housing Ordinance.

B.

All qualifying units not included within the inclusionary housing developer agreement shall be subject to the following provisions:

1.

Duration of Affordability. The applicant shall agree to, and the County shall ensure, the continued availability of the qualifying units and other incentives for a period of at least thirty (30) 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.

Unit Affordability Requirements.

a.

Rental Units. Rents for the low income and moderate income qualifying units shall be set at an affordable rent as defined in Section 21.65.030.

b.

Owner-Occupied Units. Owner-occupied qualifying units shall be available at an affordable housing sales price as defined in Section 21.65.030.

3.

Occupancy and Resale of Very Low, Low, and Moderate Income for Sale Units.

a.

An applicant shall agree to, and the County shall ensure, that the occupant of very low, low, or moderate income units are persons and families of the appropriate income and that the units are offered at an affordable housing cost.

b.

The County shall enforce an equity sharing agreement as specified in California Government Code Section 65915(c)(2), as may be periodically amended.

4.

Location and Type of Qualifying Units.

a.

Location/Dispersal of Units. Qualifying units shall be comparable in number of bedrooms, exterior appearance and overall quality of construction to the market rate units within the housing development. The qualifying units shall be considered as part of the housing development for which the density bonus is being considered. To the greatest extent feasible, the qualifying units shall be located throughout the housing development that also includes market rate units. Qualifying units may be clustered or located off-site subject to the approval of the Appropriate Authority, if such clustering or off-site location furthers affordable housing opportunities.

b.

Phasing. If a project is to be phased, the qualifying units shall be phased in the same proportion as the market rate units or phased in another sequence acceptable to the County. The qualifying units shall be constructed concurrently with or prior to construction of the market rate units.

c.

Exterior Appearance. The exterior appearance and quality of the reserved units shall generally be similar to the market rate units, with exterior materials and improvements similar to and architecturally compatible with the market rate units in the development.

5.

The applicant will be required to enter into and record a Density Bonus Housing Agreement with the County, either as a separate agreement or combined with the Inclusionary Housing Developer Agreement, containing and implementing these requirements.

(Ord. No. 5177, § 55, 5-24-2011)