The purpose of this Article is to comply with the Statewide Density Bonus Law (California Government Code 65915) and to implement the Housing Element of the General Plan by providing increased residential densities for projects that guarantee that a portion of the housing units constructed in a housing development will be restricted to senior citizens or affordable to moderate, lower, or very low income persons or for the donation of land for very low income housing.

(Ord. 241 § 2 (part), 2006)

Applicants for qualifying projects shall be eligible for a density bonus and other incentives and concessions to the extent required by California Government Code Section 65915. Any request for approval of a density bonus and incentives and concessions pursuant to this Article shall be made along with other applicable related planning action requests for the project as specified in the City of Saratoga Zoning Ordinance. Applicants for which applications for one or more approvals are pending at the time, this Article is adopted shall apply for a density bonus and other incentives and concessions within ninety days of the effective date of this Article.

(Ord. 241 § 2 (part), 2006)

Applicants requesting a density bonus or other incentive or concession shall submit an application to the Community Development Director. Determination of the completeness and accuracy of the information submitted in support of a request for an incentive and evaluation of this information shall be made by the City, or by a third party agreed to jointly by the City and the applicant. The application shall include:

(a)

A concise written description of the project, including location, number and type of housing units, including affordable units and bonus units, and the planning approval(s) required.

(b)

A site map showing the location and general layout of the proposed housing development and surrounding land uses and roadways.

(c)

A written request for the specific incentive(s) or concession(s) sought, accompanied by a description of the rationale and accurate supporting information sufficient to demonstrate that any requested concession or incentive is necessary to make the affordable units economically feasible and set rents at qualifying levels. If applicable, the applicant shall identify the proposed use of any housing subventions or programs for the housing development, such as Community Development Block Grants or other sources of funding.

(d)

Information demonstrating the feasibility of the project as proposed including the following:

(1)

A development pro forma with the capital costs, operating expenses, return on investment, revenues, loan-to-value ratio and the debt-coverage ratio, including the contribution provided by any applicable subsidy programs, and the economic effect created by the thirty-year use and income restrictions of the affordable housing units.

(2)

An appraisal report indicating the value of the density bonus and of the incentive(s) and of the value of any other incentives.

(3)

Sources and use of funds statement identifying the projected financing gap of the project with the affordable housing units that are the basis for granting the density bonus and incentive(s). The applicant shall establish how much of the gap would be covered by the density bonus, leaving a remainder figure to be covered by an additional incentive.

(e)

Such other materials as the Community Development Director may determine are necessary to review the request in accordance with this Code.

(Ord. 241 § 2 (part), 2006)

Within ninety days of receipt of a complete proposal, the Community Development Director shall notify the applicant in writing what the staff will recommend as to how the City will comply with this Article, and shall indicate whether staff has determined that the housing development complies with this Article and with the applicable planning and zoning regulations. The application and all associated project approvals shall be considered by the Planning Commission which shall make a recommendation to the City Council. The City Council shall make a final decision on the proposal and related approvals together with the affordable housing density bonus agreement described in Section 15-81.050.

(Ord. 241 § 2 (part), 2006)

(Ord. No. 307, § 1.C.26, 10-16-2013)

Prior to the issuance of a building permit for any dwelling unit in a development for which a density bonus has been awarded or incentives or concessions have been granted, the applicant shall enter into a written agreement with the City for the duration of affordability. The terms and conditions of the agreement shall run with the land which is to be developed, shall be binding upon the successor in interest of the applicant, and shall be recorded in the Santa Clara County Recorder's office. The agreement shall be approved by the City Council and shall include provisions for the following and any other matters required by law:

(a)

The number and proportion of housing units affordable to moderate income, lower income and very low income households by type, location, and number of bedrooms.

(b)

Standards for maximum qualifying household incomes and maximum rents or sale prices.

(c)

The party responsible for certifying rents and sale prices of affordable housing units.

(d)

The process that will be used to certify incomes of tenants or purchasers of the affordable housing units.

(e)

The manner in which vacancies will be marketed and filled, including the screening and qualifying of prospective renters and purchasers of the affordable units.

(f)

Deed restrictions on the affordable housing units binding on property upon sale or transfer.

(g)

Enforcement mechanisms to ensure that the affordable units are continuously occupied by eligible households are not sold, rented, leased, sublet, assigned, or otherwise transferred to noneligible households.

(h)

Project phasing, including the timing of completion, and rentals or sale of the affordable housing units, in relation to the timing of the market-rate units.

(Ord. 241 § 2 (part), 2006)