Density Bonus for One-Hundred Percent Affordable Developments. Density bonuses are required to be provided for developments that contain one-hundred percent affordable units (out of total units). These developments may have density bonuses up to eighty percent, provided that these developments result in a project cost reduction and that there are no adverse impacts on public health, safety, the environment, or historical properties that could be contrary to the law (AB 1763).

Certain Donations of Land. When an applicant for a tentative subdivision map, parcel map, or other residential development approval donates land to the city that satisfies the requirements of Government Code Section 65915(g), and complies with all procedural requirements of that subsection, including recordation of a deed restriction, the maximum allowable residential density for the site shall be increased by fifteen percent; provided, however, that for each one percent increase above the minimum percentage of land required to be donated pursuant to Government Code Section 65915(g), the density bonus shall be increased by one percent up to a maximum of fifty. This increase shall be in addition to any increase required by Section 17.13.020-A, up to a maximum combined density increase of fifty percent, if an applicant seeks both the increase required by this subsection and by Section 17.13.020-A.

All density calculations resulting in fractional units shall be rounded up to the next whole number. The density bonus shall not be included when determining the percentage of target units. When calculating the required number of target units, any resulting fraction of units shall be deleted.

Any development receiving a density bonus pursuant to Chapter 17.13 must reserve at least twenty percent of units for affordable housing. Eighty percent of units within the development must be consistent with the maximum rent level for developments that receive low-income tax credits from the California Tax Credit Allocation Committee (CTCAC).

In cases where a density increase of more than the amount specified in Table 17.13.020-B is requested, the density increase, if granted, shall be considered an additional incentive.

Incentives provided, however, that these developments result in a project cost reduction and that there are no adverse impacts on public health, safety, the environment, or historical properties that could be contrary to the law.

The childcare facility shall remain in operation for a period of time that is as long or longer than the period of time during which the density bonus units are required to remain affordable;

Of the children who attend the childcare facility, the children of very low income households, lower income households, or families of moderate income shall equal a percentage that is equal to or greater than the percentage of dwelling units that are required for very low income households, lower income households, or families of moderate income, pursuant to this chapter;

Notwithstanding the foregoing, the city shall not be required to provide a density bonus or incentive for a childcare facility when it is found, based upon substantial evidence, that the community has adequate childcare facilities.

A reduction in site development standards which exceed the minimum building standards provided in Part 2.5 (commencing with Section 18901) of Division 13 of the Health and Safety Code. These may include, but are not limited to, one or more of the following:

Reduced on-site parking standards;

Reduced minimum building separation requirements;

Other site or construction conditions applicable to a residential development;

Mixed-use zoning to allow the housing development to include nonresidential uses and/or allow the housing development to be within a nonresidential zone. Approval of mixed-use activities in conjunction with the housing development if other land uses will reduce the cost of the housing development, and the other land uses are compatible with the housing development and the existing or planned development in the area, and is consistent with the General Plan;

Another regulatory incentive or concession proposed by the applicant and agreed to by the city, that results in identifiable, financially sufficient, and actual cost reductions. Permissible incentives include direct financial aid (e.g., CAL Home, or other federal or state housing funding) in the form of a loan or a grant to subsidize or provide low interest financing for on- or off-site improvements, land, or construction costs;

A density bonus of more than thirty-five percent;

Waived, reduced, or deferred plan check, or construction permit. Impact fees (e.g., capital facilities, park, traffic, etc.) may not be imposed on affordable units in any Density Bonus development (AB 571).

Economic Feasibility. Any development incentive granted shall contribute to the economic feasibility of providing the target units.

Waivers or Modifications of Development Standards. In addition to any density bonus or incentives provided, an applicant may seek a waiver or modification of development standards that would physically preclude the construction of a housing development at the densities or with the incentives permitted by this chapter.

The seller of the unit shall retain the value of any improvements, the down payment, and the seller's proportionate share of appreciation.

The city shall recapture any initial subsidy and its proportionate share of appreciation, which shall then be used within five years for any of the purposes described in Health and Safety Code Section 33334.2(e) that promote homeownership.

For purposes of this subsection, the city's "proportionate share of appreciation" shall be equal to the ratio of the city's initial subsidy to the fair market value of the home at the time of the initial sale.

For purposes of this subsection, the city's "initial subsidy" shall be equal to the fair market value of the home at the time of the initial sale minus the initial sale price to the moderate income household, plus the amount of any down payment assistance or mortgage assistance. If upon resale the market value is lower than the initial market value, then the value at the time of resale shall be used as the initial market value.

If the total number of parking spaces required for a housing development is other than a whole number, the number shall be rounded up to the next whole number. For purposes of this subsection, a housing development may provide "on-site parking" through tandem parking or uncovered parking, but not through on-street parking.

A brief description of the proposed housing development, including the total number of units, target units, and density bonus units proposed;

The zoning and General Plan designations and assessor's parcel number(s) of the project site;

A vicinity map and preliminary site plan, drawn to scale, including building footprints, driveways, and parking layout; and

The number and nature of the incentives requested pursuant to this chapter.

Within ninety days of receipt of the application for a density bonus and a housing development, the city shall provide to an applicant a letter, which identifies project issues of concern, and the procedures for compliance with this chapter.

If additional incentives are requested, the director of community development shall inform the applicant that the requested additional incentives shall or shall not be recommended for consideration with the proposed housing development, or that alternative or modified incentives shall be recommended for consideration in lieu of the requested incentives. If the director of community development recommends alternative or modified incentives, the recommendation shall establish how the alternative or modified incentives can be expected to have an equivalent affordability effect as the requested incentives.

The total number of units proposed within the housing development, including the number of target units;

A description of the household income group to be accommodated by the housing development, and the standards for determining the corresponding affordable rent or affordable sales price and housing cost;

The location, unit sizes (square feet) and number of bedrooms of target units;

Tenure of use restrictions for target units per the period of time outlined in Table 17.13.050-B;

A schedule for completion and occupancy of target units;

A description of any additional incentive being provided by the city;

A description of remedies for breach of the agreement by either party (the city may identify tenants or qualified purchasers as third party beneficiaries under the agreement); and

Other provisions to ensure implementation and compliance with this chapter.

Target units shall, upon initial sale, be sold to and occupied by eligible very low, lower, or in the case of a condominium, moderate income households at an affordable sales price and housing cost, or to qualified senior citizen residents (i.e., maintained as senior citizen housing) or to qualified veteran housing residents.

The initial purchaser of each target unit shall execute an instrument or agreement, approved by the city attorney, restricting the sale of the target unit in accordance with this chapter during the applicable use restriction period. Such instrument or agreement shall be recorded against the parcel containing the target unit and shall contain provisions as the city may require to ensure continued compliance with this chapter and the State Density Bonus Law.

The rules and procedures for qualifying tenants, establishing affordable rent, filling vacancies and the proper management and maintenance of target units for qualified tenants;

Provisions requiring owners to verify tenant incomes and maintain books and records to demonstrate compliance with this chapter; and

Provisions requiring owners to submit an annual report to the city, which includes the name, address and income of each person occupying target units, and which identifies the bedroom size and monthly rent or cost of each target unit.