Placentia City Zoning Code
CHAPTER 23
23 DENSITY BONUS
§ 23.23.010 Purpose.
The purpose and intent of this chapter is to facilitate the development of affordable housing in order to serve a variety of housing needs within the city. To encourage the provision of housing for senior citizens, lower and very low income households, the city shall provide a density bonus to developers who meet the requirements established in this chapter. The density bonus allows a density increase of at least twenty-five (25) percent over the designated zoning density, plus additional incentives if warranted. The requirements set forth in this chapter shall apply citywide.
(Ord. O-2002-05 § 1, 2002)
§ 23.23.020 Definitions.
For the purposes of this chapter, the following terms shall be defined as follows:
“Affordable housing”
means housing available at affordable housing cost or affordable rent at qualifying levels for lower or very low income households as defined by sections 23.23.050(f) and 23.23.060(b) of this chapter.
“Density bonus”
means an increased density of at least twenty-five (25) percent, unless a lesser density is elected by the developer, over the otherwise maximum allowable residential density under the applicable zoning ordinance and land use element of the general plan as of the date of the application which is granted to a developer of a housing development agreeing to restrict a percentage of the dwelling units within the housing development to senior citizen households, lower income households or very low income households as required by this chapter. This applies to both for rent and for sale housing.
“Housing development”
means one or more groups of residential development projects consisting of five (5) or more dwelling units or, upon recommendation by the director of development services and approval by the city council, such development projects consisting of four (4) or fewer dwelling units. For the purposes of this chapter, “housing development” also includes (1) a project to substantially rehabilitate and convert an existing commercial building to residential use; (2) the substantial rehabilitation of an existing multifamily dwelling where the result of rehabilitation would be a net increase in available residential units, or (3) a condominium conversion of existing units satisfying the requirements of Section 65915.5 of the California Government Code.
“Lower income households”
means those person(s) or households as defined in Section 50079.5 of the California Health and Safety Code whose gross household incomes do not exceed eighty (80) percent of the Orange County median income adjusted for family size as determined by income limits published by the State Department of Housing and Community Development.
“Senior citizen households”
means qualifying residents as defined by Section 51.3 of the California Civil Code as amended from time to time.
“Very low income households”
means those person(s) or households as defined in Section 50105 of the California Health and Safety Code whose gross household incomes do not exceed fifty (50) percent of the Orange County median income adjusted for family size as determined by income limits published by the State Department of Housing and Community Development.
(Ord. O-2002-05 § 1, 2002)
§ 23.23.030 Applicability.
This chapter shall apply to all single-family and multiple family housing developments consisting of five (5) dwelling units or more, or such developments otherwise designated as “housing developments” pursuant to Section 23.23.020 hereof. The developer shall be entitled to only one density bonus even if more than one qualifying criterion is met.
(Ord. O-2002-05 § 1, 2002)
§ 23.23.040 General standards.
The following standards shall apply to all density bonus projects in the city:
(1)
In order to encourage the development of low cost housing, an applicant for a housing development may request, upon approval by the planning commission and city council, one density bonus of at least twenty-five (25) percent and possibly additional incentives if the applicant agrees to construct at least:
(A)
Ten (10) percent of the total dwelling units of a housing development as affordable housing for very low income households; or
(B)
Twenty (20%) percent of the dwelling units of a housing development as affordable housing for lower income households; or
(C)
Fifty (50) percent of the total dwelling units of a housing development for senior citizens households.
(2)
The total number of dwelling units allowed under a density bonus shall be calculated by multiplying the number of units allowed under the maximum allowable residential density of the applicable zoning ordinance and land use element of the general plan as of the date of the developer’s application by 1.25. If the result includes a fraction of a unit, the result shall be rounded up to the next highest full unit.
(3)
The density bonus shall not be included when determining the number of dwelling units which is equal to ten (10) percent, twenty (20) percent or fifty (50) percent, whichever is applicable, of the total units in a housing development. If the calculation of the ten (10) percent, twenty (20) percent or fifty (50) percent of the total units in a housing development includes a fraction of a unit, the result shall be rounded up to the next highest unit.
(4)
In cases where a density increase of less than twenty-five (25%) is requested, no reduction will be permitted in the number of units subject to the set-aside requirement.
(5)
Density bonus projects shall comply with all applicable development standards, except those which may be waived or modified in conjunction with the provision of an additional incentive as provided herein and any other requirements of law.
(6)
A written legal contract which binds a density bonus project to the requirements of this section shall be executed by both the city and the applicant and shall be recorded as part of the property’s deed(s) prior to the issuance of building permits. The agreement shall be binding on future owners of the development.
(7)
In the event that any requirements contained herein are in conflict with the requirements of any government housing programs in which participation is required, the more restrictive requirement shall apply.
(8)
Source for Area Median Income. The most recently-published Federal Department of Housing and Urban Development median income figures for the Anaheim/Santa Ana Partial Metropolitan Statistical Area, as published with adjustments for family size, shall be used to determine the area median income.
(9)
Set-Aside Unit Characteristics. All set-aside units shall have a bedroom mix and amenities representative of the entire project. Set-aside units shall also be reasonably distributed through the project.
(10)
Participation in Housing Programs. Application/property owner of ownership density bonus projects shall participate in the county of Orange mortgage revenue bond program or other programs approved by the city when funds are available. Applicant/property owner or rental density bonus projects shall participate in the county of Orange multifamily revenue bond program or other programs approved by the city when funds are available.
(11)
An additional incentive shall be evaluated on a case-by-case basis based on information provided by the applicant.
(Ord. O-2002-05 § 1, 2002)
§ 23.23.050 Rental units.
(a)
Units within rental density bonus projects shall be either occupied by, or vacant and available for, specific income tenants as follows:
(1)
Ten (10) percent for very low-income households;
(2)
Twenty (20) percent for low-income households;
(3)
Fifty (50) percent for senior citizen households.
(b)
Full-time students who are not eligible to file a joint or head-of-household Federal Income Tax Return cannot qualify as a low- or very low-income household, regardless of their income.
(c)
The following priority shall be used for selecting tenants:
(1)
Very low-income, Placentia resident/worker households without Section 8 certificates;
(2)
Very low-income households without Section 8 certificates;
(3)
Low-income households.
(d)
In addition, priority shall be given to households of the following sizes in relationship to the number of bedrooms available in each set-aside unit:
No. of Bedrooms Available | First Priority | Second Priority |
|---|---|---|
Bachelor | 2 persons | 1 person |
1 bedroom | 2 persons | 1 person |
2 bedrooms | 4 persons | 3 persons or less |
3 bedrooms | 6 persons | 3 persons or less |
(e)
The applicant/property owner of a rental density bonus project shall immediately attempt to secure tenants in accordance with subsections (a) through (d) of this section at any time that fewer than the required number of set-aside units are occupied by very low-income, low-income or senior households as required by this section. If there is not a sufficient number of qualified tenants to immediately occupy the units, the applicant/property owner shall comply with the marketing requirements contained in Section 23.23.050 (i)
(f)
Maximum Rent and Deposit Amounts.
(1)
Units targeted for low-income households shall have a monthly rent that does not exceed thirty (30) percent of sixty (60) percent of the monthly area median income as published and adjusted for family size by the Federal Department of Housing and Urban Development.
(2)
Units targeted for very low-income households shall have a monthly rent that does not exceed thirty (30) percent of fifty (50) percent of the monthly area median income, as published and adjusted for family size by the Federal Department of Housing and Urban Development.
(3)
Total move-in costs for very low- and low-income tenants occupying set-aside units shall be limited to last month’s rent plus a cleaning deposit not to exceed one (1) month’s rent.
(g)
Duration of Set-Aside Period. Set-aside units for which no additional incentive is granted shall be subject to the conditions of this section for a period of ten (10) years, otherwise, the period is thirty (30) years, beginning when the units are first available.
(h)
Compliance Monitoring.
(1)
Within thirty (30) days of occupancy of a set-aside unit, the applicant/property owner shall submit the name, address and income of each person occupying set-aside units. Sworn and signed income statements shall also be included.
(2)
The applicant/property owner shall submit annual compliance reports which include the name, address and income of each person occupying set-aside units. The compliance reports shall be due on the anniversary of the initial release date.
(3)
The applicant/property owner shall maintain all project-related records on file. The city shall have the right to inspect these records at any reasonable time.
(4)
The city shall be entitled to have an independent audit of the applicant’s records conducted once per year. Such audit shall be at the city’s expense unless a violation of this section is discovered. The city shall give at least forty-eight (48) hours notice prior to conducting an audit.
(i)
Marketing Requirements. At any such time that set-aside units are not occupied by very low-income, low-income or senior households as required by this section and qualified tenants are not available to immediately occupy the units, the applicant/property owner shall undertake the following marketing effort:
(1)
Establish a telephone number with message capabilities to receive inquiries on the set-aside units;
(2)
Advertise the unit(s) in a newspaper circulated within the city each Sunday during which set-aside units are vacant. Advertising can be cancelled at any time a sufficient number or qualified tenants has been secured;
(3)
Post at least one (1) sign advertising the unit(s) on the subject property in a place that is clearly visible from a public street;
(4)
Notify the Orange County Housing Authority of the availability of the set-aside units.
(j)
Upward Mobility Allowance. At any time a tenant occupying a set-aside unit no longer qualifies, that tenant may then be charged market rate rent. If this occurs, any currently vacant unit shall then be designated as a set-aside unit and the applicant shall immediately attempt to secure tenants in accordance with this section. If no vacant units are available at such time, the next available vacant unit shall be designated as a set-aside unit.
(k)
Subletting of Units. No subletting of rental set-aside units shall be allowed unless the following conditions are met;
(1)
Permission is obtained from the applicant/property owner; and
(2)
The subletee qualifies as a very low- or low-income or senior citizen household and the combined income of all potential tenants, adjusted for family size, does not exceed the income limits set forth in this section.
(Ord. O-2002-05 § 1, 2002)
§ 23.23.060 Ownership units.
(a)
Units within ownership density bonus projects shall be either sold to and occupied by, or vacant and available for exclusive sale to households within specific income groups as follows:
(1)
Ten (10) percent for low-income households;
(2)
Twenty (20) percent for low-income households;
(3)
Fifty (50) percent for senior citizen households.
(b)
Maximum Sales Prices and Deposit Amounts.
(1)
Ownership units targeted for very low income households or lower income households shall be sold at a cost not to exceed affordable housing cost as defined by Section 50052.5 of the California Health and Safety Code, as may be amended from time to time.
(2)
The total mortgage payments for ownership units targeted for senior citizen households including principal, interest, taxes, insurance and homeowner association dues, (if applicable) shall not exceed thirty (30) percent of the purchaser’s gross monthly income.
(3)
The total down-payment amount for ownership set-aside units, excluding closing costs, shall not exceed ten (10) percent of the purchase price.
(c)
Duration of Set-Aside Period. Set-aside ownership units for which no additional incentive is granted shall be subject to the conditions of this section for a period of ten (10) years, otherwise, the period shall be thirty (30) years, beginning when the units are first available.
(d)
Compliance Requirements.
(1)
The applicant/property owner shall record deed restrictions against ownership set-aside units which limit their sale and resale to the provisions of this section. Recordation shall be required prior to the issuance of building permits.
(2)
The applicant/property owner shall record monetary liens on ownership set-aside units in favor of the city, with the amount to be determined by the director of development services, to discourage speculation. The monetary liens shall be in effect for the entire set-aside period. Recordation shall be required prior to the issuance of building permits.
(3)
Notwithstanding subsections (a) and (b) above, developments involving the subdivision of land shall also have a deed restriction reiterating the provisions of this section recorded prior to subdivision.
(e)
Marketing Requirements. Ownership set-aside units shall be, upon final occupancy clearance by the city, held for sale until such time as they are sold in accordance with the requirements of this section.
(f)
Owner-Occupancy Requirements. All ownership set-aside units shall be occupied by their purchasers. No renting, leasing or subleasing shall be allowed.
(Ord. O-2002-05 § 1, 2002)
§ 23.23.070 Additional incentives.
(a)
If an applicant for a Housing development agrees to set aside the requisite number of affordable units in exchange for a density bonus as set forth by this section, the city shall provide at least one of the following incentives, unless the city makes written findings pursuant to Section 65915 (b) of the Government Code:
(1)
A reduction in site development standards or a modification of zoning code requirements or architectural design requirements that exceed the minimum building standards approved by the California Building Standards Commission as provided in Part 2.5 (commencing with Section 18901) of Division 13 of the Health and Safety Code, including, but not limited to, a reduction in setback and square footage requirements and in the ratio of vehicular parking spaces that would otherwise be required; or
(2)
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 housing development will be located; or
(3)
Other regulatory incentives or concessions proposed by the applicant or the city that result in identifiable cost reductions, including but not limited to, additional density bonus, public financing and expedited processing.
(b)
Evaluation Criteria. The director of development services shall evaluate and make recommendations upon requests for additional incentives based on the following:
(1)
The additional incentive must be necessary to make the project economically feasible;
(2)
The requested additional incentive shall not be detrimental to public health, safety and welfare, nor injurious to property and/or improvements within the project’s vicinity;
(3)
The requested additional incentive shall not result in an overall development pattern that is incompatible with other structures in the immediate vicinity;
(4)
Notwithstanding subdivision (1) above, the city may, at its sole discretion, consider the provision of one (1) of the additional incentives solely to increase the set-aside period from the amount of time required when no additional incentive is provided (10 years) to the amount of time required when an additional incentive is provided (30 years).
(c)
Request Process.
(1)
Request for additional incentives shall be made in writing to the director of development services and shall accompany all other formal application materials. The director of development services shall evaluate requests using the criteria set forth in this section and shall make a recommendation to the city council who shall make the final decision.
(2)
The written request shall specify the incentive requested and shall clearly indicate how the requested additional incentive is necessary to make the project economically feasible.
(Ord. O-2002-05 § 1, 2002)
§ 23.23.080 Development plan review.
(a)
All density bonus projects shall be reviewed by the planning commission and city council to determine the feasibility of the physical development and related improvements to the property.
(b)
All density bonus projects shall be subject to development plan review and approval, which is set forth in Chapter 23.75.
(Ord. O-2002-05 § 1, 2002)
