Oroville City Zoning Code
CHAPTER 17
24 RESIDENTIAL DENSITY BONUSES
§ 17.24.010 Purpose.
§ 17.24.020 General provisions.
A.
Eligibility. The city shall grant a density bonus and a development incentive or incentives to an applicant or developer of a housing development with 5 or more dwelling units who provides any of the following in accordance with the provisions of this title:
1.
At least 10% of the total units of the housing development as target units affordable to lower-income households.
2.
At least 5% of the total units of the housing development as target units affordable to very-low-income households.
3.
Ten percent of the total dwelling units in a common-interest development as target units affordable to moderate-income households, provided all units are offered to the public for purchase.
B.
Number of Target Units. To determine the number of target units to be provided, the maximum residential density shall be multiplied by 0.05 where very-low-income households are targeted, or by 0.10 where lower-income or moderate-income households are targeted. Any fraction shall be rounded up to the next whole number. Required donations of land in a residential subdivision shall be calculated as required in Section 17.24.030.
C.
Number of Density Bonus Units. The number of density bonus units to be granted shall be determined as follows:
1.
A base factor for calculating the number of density bonus units shall be selected, based on the type of housing development, as follows:
a.
For a common-interest development that provides target units for moderate-income households but do not otherwise meet the requirements of this section, the base factor shall be 0.05.
b.
For housing developments that include donations of land to construct housing for very-low-income households but do not otherwise meet the requirements of this section, the base factor shall be 0.15.
c.
For other housing developments that meet the requirements of this section, the base factor shall be 0.20.
2.
The base factor shall be adjusted, up to a maximum of 0.35, for projects that provide any of the following:
a.
For a housing development that provides more than 10% of the total units as target units for low-income households, each one percent increase shall increase the base factor by 0.015.
b.
For a housing development that provides more than 5% of the total units as target units for very-low-income households, each one percent increase shall increase the base factor by 0.025.
c.
For a common-interest development that provides more than 10% of the total units as target units for moderate-income households, each one percent increase shall increase the base factor by 0.01.
d.
For donations of land to construct housing for very-low-income households, if the area of land donated is larger than the minimum required area, each one percent increase in the size of the land donation shall increase the base factor by 0.01.
3.
The minimum number of density bonus units to be granted shall be the maximum residential density for the site, multiplied by the adjusted base factor. Any fraction shall be rounded up to the next whole number.
4.
The density bonus units shall not be included when determining the number of target units required to qualify for a density bonus.
D.
Reduction of Target Units Prohibited. No reduction shall be allowed in the number of target units required, even if the applicant proposes to build fewer density bonus units than are permitted by this section.
E.
Child Day Care Facilities. If a housing development is otherwise eligible for a density bonus under the provisions of this section; the development includes a child day care facility other than a family day care home, including, but not limited to, an infant center, preschool, extended day care facility or school-age child care center, that will be located on the premises of, as part of or adjacent to the development; and the city does not find, based upon substantial evidence, that the community has adequate child care facilities, the city shall grant one of the following:
(Ord. 1749 § 4)
§ 17.24.030 Standards for target units.
All target units built under the provisions of this section shall meet the following requirements:
A.
Concurrency. Target units shall be built concurrently with non-restricted units unless the city and the applicant agree within the density bonus housing agreement to an alternative schedule for development.
B.
Location. Target units shall be built on-site wherever possible and, where practical, shall be dispersed within the housing development.
C.
Unit Size. Where feasible, the number of bedrooms of the target units shall be equivalent to the bedroom mix of the housing development's other units, except that the developer may include a higher proportion of target units with more bedrooms.
D.
Design. The design and appearance of the target 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 provided by this chapter.
F.
Linked Sites. Circumstances may arise in which the public interest would be served by allowing some or all of the target units associated with one housing development to be produced and operated at an alternative development site. If the developer and the city agree to allow the production and operation of target units at an alternative site, the resulting linked developments shall be considered a single housing development for the purposes of this section.
(Ord. 1749 § 4)
§ 17.24.040 Donations of land.
All land donated for the purpose of constructing housing for very-low-income households, in order to receive a density bonus under the provisions of this section, 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 10% 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 40 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, except that the city may subject the proposed development to design review to the extent authorized by subdivision (i) of Section 66583.2 of the Government Code if the design is not reviewed by the city prior to the time of transfer.
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 section. The restriction shall be recorded on the property at the time of dedication.
G.
Recipient. The land shall be transferred to the city or to a housing developer approved by the city. The city 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 city agrees, within 1/4 mile of the boundary of the proposed development.
(Ord. 1749 § 4)
§ 17.24.050 Affordability requirements.
A.
Continued Affordability. Target units, and units built on donated land, shall remain restricted and affordable to the designated group for a period of 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.
B.
Affordability Requirements. Affordability of the target units, and units built on donated land, shall be required as follows:
C.
Occupancy Assumptions. The following assumptions shall be used to determine the maximum affordable rent or affordable sales price of target units, and units built on donated land, unless the housing development is subject to different assumptions imposed by other governmental regulations:
1.
A residential hotel or single-room occupancy (SRO) unit shall be assumed to be occupied by 0.75 persons.
2.
A 0-bedroom (studio) unit shall be assumed to be occupied by one person.
3.
A 1-bedroom unit shall be assumed to be occupied by 2 persons.
4.
A 2-bedroom unit shall be assumed to be occupied by 3 persons.
5.
A 3-bedroom unit shall be assumed to be occupied by 4 persons.
6.
A 4-bedroom unit shall be assumed to be occupied by 6 persons.
(Ord. 1749 § 4)
§ 17.24.060 Development incentives.
A.
Number of Incentives. The applicant shall receive, at a minimum, the following number of development incentives:
1.
A minimum of one incentive for projects that include at least 10% of the total units for lower-income households, at least 5% for very-low-income households, or at least 10% for persons and families of moderate income in a common-interest development.
2.
A minimum of 2 incentives for projects that include at least 20% of the total units for lower-income households, at least 10% for very-low-income households, or at least 20% for persons and families of moderate income in a common-interest development.
3.
A minimum of 3 incentives for projects that include at least 30% of the total units for lower-income households, at least 15% for very-low-income households, or at least 30% for persons and families of moderate income in a common-interest development.
B.
Additional Incentives. The city may, at its discretion, grant additional incentives to increase the number of target units provided or to increase the affordability of the target units.
C.
Incentive for Day Care Facility. If the applicant proposes to include a child day care facility in the project, in accordance with the requirements of this section, the applicant may choose to request an additional incentive instead of a density bonus. The additional incentive shall be required to contribute significantly to the economic feasibility of the construction of the child care facility.
D.
Available Incentives. Development incentives may include, but are not limited to, the following:
1.
A reduction of site development standards, or a modification of zoning or architectural design requirements.
2.
Reduced minimum lot sizes or dimensions.
3.
Reduced minimum setbacks.
4.
Reduced minimum outdoor and/or private outdoor space.
5.
Increased maximum site coverage.
6.
Increased maximum building height and/or number of stories.
7.
Reduced parking ratios.
8.
Reduced minimum building separation requirements.
9.
An increased density bonus.
10.
The waiver, reduction or deferral of planning, plan check, construction permit and/or development impact fees.
11.
Approval of mixed-use zoning 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.
12.
Direct financial aid, such as a redevelopment set-aside or community development block grant funding, in the form of a loan or grant to subsidize or provide low-interesting financing for on-site or off-site improvements, land or construction costs.
13.
Other regulatory incentives or concessions that result in identifiable, financially sufficient and actual cost reductions.
E.
Justification for Incentives. An applicant requesting a density bonus, concession, or incentive shall also show, using one of the following methods, that the waiver or modification is necessary to make the target units economically feasible:
1.
A development pro forma with the capital costs, operating expenses, return on investment, loan-tovalue ratio and the debt coverage ratio, including the contributions provided by any applicable subsidy programs, and the economic effect created by the minimum 30-year use and income restrictions on the affordable housing units.
2.
An appraisal report indicating the value of the density bonus and of the incentives/concessions.
3.
A use of funds statement identifying the projected financing gap for the project with the affordable housing units. 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 city shall provide the specific incentive or incentives requested by an applicant, unless the city 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 paragraph (2) of subsection (d) of Section 65589.5 of the Government Code, 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 low-income and moderate-income households.
(Ord. 1749 § 4)
§ 17.24.070 Application and review.
A.
Application. A developer seeking approval of a density bonus and an additional incentive or incentives shall file an application with the zoning administrator. The zoning administrator shall process the application concurrently with any other application required for the housing development. The form and content of the application shall be as specified by the zoning administrator and may be subject to a fee established by resolution of the city council.
B.
Hearing Process. The application shall be heard and decided by the planning commission. The procedure for giving notice of the application shall be as specified for a use permit, except that the notice shall also identify the density bonus and additional incentive or incentives requested for the project. The planning commission's decision may be appealed as provided in Section 17.56.100.
C.
Approval Process. The planning commission and city council shall be authorized to approve development incentives as follows:
(Ord. 1749 § 4; Ord. 1762 § 6)
§ 17.24.080 Density bonus housing agreement.
A.
Agreement Required. As a condition for the approval of a density bonus and additional incentive or incentives pursuant to this section, the application shall agree to enter into a density bonus housing agreement with the city. The executed density bonus housing agreement shall be recorded on the parcel or parcels designated for the construction of target 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 target units.
2.
A description of the household income group to be accommodated by the housing development, as outlined in this section, 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 target 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 day care facility for which a density bonus or additional incentive is being granted.
6.
Tenure of use restrictions for target units, and units built on donated land, in accordance with the requirements of this section.
7.
A schedule for the completion and occupancy of target units.
8.
A description of the additional incentive or incentives being provided by the city.
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 target 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 target unit shall be to a household that meets the income requirement for the target unit or, for senior citizen housing, to a senior citizen.
2.
The initial occupier of each target unit shall be a household that meets the income requirement for the target unit or, for senior citizen housing, a senior citizen.
3.
The initial purchaser of each target unit shall execute an instrument or agreement approved by the city restricting the sale of the target unit during the use restriction period. The instrument or agreement shall be recorded against the parcel containing the target unit and shall contain provisions as required by the city to ensure continued compliance with this chapter and with state law.
D.
Moderate-Income Requirements. In the case of target units for moderate-income households, the density bonus housing agreement shall provide for the following requirements:
1.
The initial sale of each target unit shall be to a household that meets the income requirement for the target 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 city's share of the appreciation.
3.
When the initial purchaser sells the unit, the city 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 city shall use this share of appreciation for any of the purposes that promote homeownership described in subdivision (e) of Section 33334.2 of the Health and Safety Code.
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 target 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 city, including the name, address and income of each person occupying a target unit and the bedroom size and monthly rent or cost of each target unit.
F.
Day Care Facility Requirements. In the case of child day 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 day 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 day care facility, the percentage of children from the income group associated with the development's target units shall be equal to or greater than the minimum percentage of target units that must be provided for that income group in order to receive a density bonus, pursuant to the requirements of this section.
(Ord. 1749 § 4)