The provisions of this chapter shall be known collectively as the density bonus ordinance of the City of Watsonville.

(§ 1, Ord. 1193-06 (CM), eff. April 27, 2006, as amended by § 2(3) (Exh. A), Ord. 1481-25 (CM), eff. October 9, 2025)

This chapter is adopted to comply with the requirements of Chapter 4.2 of Division 1 of Title 7 of the California Government Code, commencing with Section 65915.

(§ 1, Ord. 1193-06 (CM), eff. April 27, 2006, as amended by § 2(3) (Exh. A), Ord. 1481-25 (CM), eff. October 9, 2025)

(a)    It is the intent of the Council in adopting this chapter to adopt Government Code Section 65915 et seq. (State density bonus law) by reference and specify how compliance with State density bonus law will be implemented.

(b)    It is also the intent of the Council in adopting this chapter to implement the goals, objectives, and policies of the housing element of the City’s General Plan.

(§ 1, Ord. 1193-06 (CM), eff. April 27, 2006, as amended by § 2(3) (Exh. A), Ord. 1481-25 (CM), eff. October 9, 2025)

The density bonus of this chapter applies to any housing development in the City of Watsonville. If any portion of this chapter conflicts with State density bonus law, State density bonus law shall supersede this chapter. Any ambiguities in this chapter shall be interpreted to be consistent with State density bonus law.

(§ 1, Ord. 1193-06 (CM), eff. April 27, 2006, as amended by § 2(3) (Exh. A), Ord. 1481-25 (CM), eff. October 9, 2025)

Unless otherwise specified in this chapter, the definitions found in State density bonus law shall apply to the terms contained herein.

(a)    “Approval body” shall mean the Director, if the housing development is subject to ministerial or nondiscretionary review; or shall mean the City Council if the housing development is subject to discretionary review.

(b)    “Day care center” shall mean a facility approved and licensed by the State, other than a family day care home, that provides nonmedical care on less than a twenty-four (24) hour basis, including infant centers, preschools, extended day care facilities, adult day care and elderly day care facilities. “Day care center” does not include residential care facilities, residential service facilities, interim housing, or convalescent hospitals or nursing homes.

(c)    “Director” shall mean the Community Development Director.

(d)    “Maximum residential density” shall mean the maximum number of residential units permitted under the zoning designation on the date the application is deemed complete.

(e)    “Target unit” shall mean a dwelling unit within a housing development that is reserved for sale or rent, and is made available at an affordable rent or affordable ownership cost to very low, lower, or moderate income households, or is a unit in a senior citizen housing development, or is a unit for transitional foster youth, disabled veterans, homeless persons, or low income students in a student housing development, and which qualifies the housing development for a density bonus and other incentives or concessions pursuant to Section 14-47.060.

(§ 1, Ord. 1193-06 (CM), eff. April 27, 2006, as amended by § 2(3) (Exh. A), Ord. 1481-25 (CM), eff. October 9, 2025)

(a)    Housing development shall be subject to Chapter 14-46, requiring inclusionary housing units to be developed on site or the provision of an in-lieu fee as applicable.

(b)    Density bonus and target units shall not be considered in satisfying the requirements of Chapter 14-46.

(§ 1, Ord. 1193-06 (CM), eff. April 27, 2006, as amended by § 2(3) (Exh. A), Ord. 1481-25 (CM), eff. October 9, 2025)

(a)    Basic Density Bonus in Accordance With State Density Bonus Law. A housing development is eligible for one (1) density bonus when the applicant seeks a density bonus and agrees to construct said housing development as permitted by Government Code Section 65915(b)(1). For purposes of calculating the amount of the density bonus pursuant to this subsection (a), the applicant who requests a density bonus pursuant to this chapter shall elect whether the density bonus shall be awarded on the basis of Government Code Section 65915(b)(1)(A), (b)(1)(B), (b)(1)(C), (b)(1)(D), (b)(1)(E), (b)(1)(F), or (b)(1)(G).

(1)    For housing developments meeting the criteria of Government Code Section 65915(b)(1)(A), the density bonus shall be calculated as provided in Government Code Section 65915(f)(1).

(2)    For housing developments meeting the criteria of Government Code Section 65915(b)(1)(B), the density bonus shall be calculated as provided in Government Code Section 65915(f)(2).

(3)    For housing developments meeting the criteria of Government Code Section 65915(b)(1)(C), the density bonus shall be as provided in Government Code Section 65915(f)(3)(A).

(4)    For housing developments meeting the criteria of Government Code Section 65915(b)(1)(D), the density bonus shall be calculated as provided in Government Code Section 65915(f)(4).

(5)    For housing developments for transitional foster youth, the density bonus shall be calculated as provided in Government Code Section 65915(b)(1)(E), based on the criteria contained in that section.

(6)    For housing developments serving lower income students in a student housing development, the density bonus shall be calculated as provided in Government Code Section 65915(b)(1)(F), based on the criteria contained in that section.

(7)    For housing developments where one hundred (100%) percent of all units, including total units and density bonus units, but exclusive of a manager’s unit or units, are for lower income households, except that up to twenty (20%) percent of the units in the development, including total units and density bonus units, may be for moderate-income households, the density bonus shall be calculated as provided in Government Code Section 65915(b)(1)(G), based on the criteria contained in that section.

(b)    When calculating the number of permitted density bonus units, any calculations resulting in fractional units shall be rounded to the next larger whole number.

(c)    The density bonus units shall not be included when determining the number of target units required to qualify for a density bonus. When calculating the required number of target units, any calculations resulting in fractional units shall also be rounded to the next larger whole number.

(d)    The applicant may request a lesser density bonus than the housing development is entitled to, but no reduction will be permitted in the number of required target units pursuant to subsections (a)(1) through and including (a)(7) of this section. Regardless of the number of target units, no housing development may be entitled to a density bonus exceeding what is provided for in Government Code Section 65915.

(e)    The requirements of this section are minimum requirements and shall not preclude a housing development from providing additional affordable units or affordability than required by this chapter.

(f)    In accordance with State density bonus law, neither the granting of an incentive or concession nor the granting of a density bonus shall be interpreted, in and of itself, to require a General Plan amendment, planned development, zoning code amendment or rezoning, or other discretionary review application approval.

(§ 1, Ord. 1193-06 (CM), eff. April 27, 2006, as amended by § 2(3) (Exh. A), Ord. 1481-25 (CM), eff. October 9, 2025)

Density bonuses for land donation pursuant to Government Code Section 65915(g) may be combined with density bonuses granted pursuant to Section 14-47.060.

(§ 1, Ord. 1193-06 (CM), eff. April 27, 2006, as amended by § 2(3) (Exh. A), Ord. 1481-25 (CM), eff. October 9, 2025)

An additional density bonus may be granted for day care centers as described in Government Code Section 65915(h).

(§ 1, Ord. 1193-06 (CM), eff. April 27, 2006, as amended by § 2(3) (Exh. A), Ord. 1481-25 (CM), eff. October 9, 2025)

An additional density bonus may be granted for converting apartments to a condominium project with affordable units as described in Government Code Section 65915.5.

(§ 1, Ord. 1193-06 (CM), eff. April 27, 2006, as amended by § 2(3) (Exh. A), Ord. 1481-25 (CM), eff. October 9, 2025)

(a)    Target units offered for rent to lower income and very low income households shall be made available for rent at an affordable rent as defined in Chapter 14-46 and shall remain restricted and affordable to the designated income group for a minimum period of fifty-five (55) years. A longer period of affordability may be specified if required by any construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy program applicable to the housing development.

(b)    Target units offered for sale to very low, lower, or moderate income households as defined in Chapter 14-46 shall be sold only at an affordable ownership cost for a minimum period of forty-five (45) years. Such target units offered for sale shall record standard documents to ensure that at resale, the City will recapture any initial subsidy plus a share of appreciation consistent with an equity sharing agreement consistent with the provisions of California Government Code Section 65915(c)(2). For purposes of such equity sharing, the initial subsidy shall however be equal to the fair market value of the home at the time of initial sale minus the initial sales price to the moderate income household, plus the amount of any down payment assistance or mortgage assistance or other public subsidy. A longer period of affordability may be specified if required by any construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy program applicable to the housing development.

(c)    Any household that occupies a target unit must occupy that unit as its principal residence.

(d)    No household may begin occupancy of a target unit until the household has been determined by the City or its designee to be eligible to occupy that unit.

(e)    The Council, by resolution, shall establish fees for processing housing developments for applicants requesting density bonuses and incentives or concessions and for the ongoing administration and monitoring of the target units and day care centers, which fees may be updated from time to time, as required.

(f)    The Council, by resolution, shall process, review, and consider density bonus housing agreements the same manner it considers affordable housing agreements pursuant to Section 14-46.100 so as to ensure the continued affordability of the target units. In conducting such review, the Council may consider density bonus housing agreements, affordable housing agreements, regulatory agreements, promissory notes, deeds of trust, rights of first refusal, options to purchase, resale provisions, equity sharing agreements, and/or other documents which of said documents should be recorded as a condition to approval.

(g)    All promissory note repayments, shared appreciation payments, or other payments collected under this section shall be deposited in an inclusionary housing in-lieu fee fund or other such fund as may be established from time to time by the Council.

(§ 1, Ord. 1193-06 (CM), eff. April 27, 2006, as amended by § 2(3) (Exh. A), Ord. 1481-25 (CM), eff. October 9, 2025)

(a)    Target units shall be constructed pursuant to a schedule included in the density bonus housing agreement approved pursuant to Section 14-47.160.

(b)    Single-family detached target units shall be dispersed throughout the housing development. Townhouse, row house, and multifamily target units shall be located so as not to create a geographic concentration of target units within the housing development.

(c)    Target units shall have the same proportion of unit types as the market-rate units in the housing development and shall have the same square footage and the same bedroom count as the market-rate units and shall meet the general standards of Section 14-46.060.

(d)    The quality of exterior design and overall quality of construction of the target units shall meet all site, design, and construction standards included in Title 8 (Buildings), Title 13 (Subdivisions), and Title 14 (Zoning), including, but not limited to, compliance with all design standards and guidelines included in applicable specific plans or otherwise adopted by the Watsonville City Council in accordance with Section 14-46.060.

(e)    Target units made available for purchase shall include space and connections for a clothes washer and dryer within the target unit. Target units made available for rent shall include either connection for a clothes washer and dryer within the target unit or sufficient on-site self-serve laundry facilities to meet the needs of all tenants without laundry connections in their units in accordance with Section 14-46.060.

(f)    Except as otherwise provided in California Government Code Sections 65915(p)(2), (p)(3) and (p)(4), upon the request of the applicant, the City shall not impose an off-street vehicular parking standard, inclusive of handicapped and guest parking, of a housing development which otherwise satisfies Sections 14-47.060(a)(1) through (a)(7) that exceeds the following:

(1)    Zero (0) to one (1) bedroom: one (1) on-site parking space;

(2)    Two (2) to three (3) bedrooms: one and one-half (1 1/2) on-site parking spaces;

(3)    Four (4) and more bedrooms: two and one-half (2 1/2) parking spaces.

(g)    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 chapter, a housing development may provide on-site parking through tandem parking or uncovered parking, but not through on-street parking.

(§ 1, Ord. 1193-06 (CM), eff. April 27, 2006, as amended by § 2(3) (Exh. A), Ord. 1481-25 (CM), eff. October 9, 2025)

(a)    Incentives or concessions may be requested pursuant to California Government Code Section 65915(d). Waivers or reductions of development standards may be requested pursuant to California Government Code Section 65915(e). In addition, the following incentives or concessions may be requested:

(1)    Deferral until immediately prior to occupancy of development impact fees (e.g., park fees, fire fees, sanitary sewer fees, storm drain fees, or traffic impact fees);

(2)    Other regulatory incentives or concessions proposed by the applicant or the City that result in identifiable, financially sufficient, and actual cost reductions.

(§ 1, Ord. 1193-06 (CM), eff. April 27, 2006, as amended by § 2(3) (Exh. A), Ord. 1481-25 (CM), eff. October 9, 2025)

(a)    Applications for a density bonus shall include:

(1)    A density bonus housing plan, showing any density bonus to which the housing development asserts they are entitled, incentive, concession, waiver, modification, or revised parking standard requested pursuant to this chapter, shall be submitted as part of the first approval of any housing development. Such plan shall specify, at the same level of detail as the application for the housing development: the number, unit type, level of affordability, tenure, number of bedrooms and baths, approximate location, size, and design, construction and completion schedule of all target units, number and location of all density bonus units, phasing of target units in relation to nonrestricted units, and marketing plan. The density bonus housing plan shall also specify the methods to be used to verify tenant and buyer incomes and to maintain the affordability of the target units, and, for housing developments with thirty (30) or more affordable density bonus units, shall specify a financing mechanism for the ongoing administration and monitoring of the target units;

(2)    A specific description of any requested incentives, concessions, waivers, or modifications of development standards, or modified parking standards. For concessions and incentives, the application shall include reasonable documentation consisting of a detailed written statement to establish eligibility for the concession. For waivers, the application shall include a written explanation of why the development standard from which the waiver is sought would have the effect of physically precluding the construction of the housing development at the density and with any concession(s) or parking ratio reduction sought;

(3)    If a density bonus or concession is requested for a land donation, the application shall show the location of the land to be dedicated and provide evidence that each of the findings in California Government Code Section 65915(g)(1) can be made;

(4)    If a density bonus or concession is requested for a day care center, the application shall show the location and square footage of the day care center and provide evidence that each of the findings included in Section 14-47.080 can be made. The applicant shall provide the name of the operator and adequate financial reports regarding the proposed operator. Such an analysis shall be prepared by a third party as selected by the City and paid for by the applicant;

(5)    If the housing development is proposed on any property that includes a parcel or parcels with existing dwelling units or dwelling units that have been vacated or demolished in the five (5) year period preceding the application, an explanation of how the project meets the State density bonus law’s replacement housing requirements, if applicable, set forth in Government Code Section 65915(c)(3)(A).

(§ 1, Ord. 1193-06 (CM), eff. April 27, 2006, as amended by § 2(3) (Exh. A), Ord. 1481-25 (CM), eff. October 9, 2025)

(a)    The Director shall process the density bonus application and shall provide the applicant with notice of whether the application is complete in a manner consistent with State density bonus law.

(b)    At the time the application is deemed complete, the Director shall provide the applicant with a determination regarding the amount of density bonus based on the submitted density bonus housing plan.

(c)    If the proposed density bonus housing plan is not consistent with State density bonus law, then the Director shall provide the applicant notice describing the inconsistency(ies) pursuant to the Housing Accountability Act.

(d)    All requests for density bonus, incentives or concessions, parking ratios, waivers or reductions of development standards shall be considered and acted upon by the approval body with the authority to approve the housing development within the timelines prescribed by Government Code Sections 65950 et seq. The approval body shall grant the request(s) pursuant to State density bonus law if the following findings are met:

(1)    The application is eligible for a density bonus and any concessions, or incentives requested conform to all standards included in this chapter and State density bonus law;

(2)    If a reduced parking ratio is requested, the housing development meets all eligibility requirements, unless the approval body makes certain findings pursuant to State density bonus law, as set forth in Government Code Section 65915(p)(7), as may be amended;

(3)    If concessions are requested, the housing development meets all eligibility requirements, unless the approving body makes certain findings pursuant to State density bonus law, as currently defined in Government Code Section 65915(d)(1), as may be amended; and

(4)    If waivers are requested, the development standards requested to be waived would physically preclude construction of the housing development at the density and with any concession(s) or parking ratio reduction sought, unless the approving body makes certain findings pursuant to State density bonus law, as set forth in Government Code Section 65915(e)(1), as may be amended.

(5)    If the density bonus is based all or in part on donation of land, the approval body has made the findings included in Section 14-47.070;

(6)    If the density bonus, incentive, or concession is based all or in part on the inclusion of a day care center, the approval body has made the findings required by Section 14-47.080;

(7)    A density bonus housing agreement in recordable form has been signed by the owner of the residential development with terms and conditions reasonably to satisfy the requirements of this chapter and the density bonus program guidelines.

(e)    If the required findings cannot be made, the approval body shall issue a written decision providing the basis for the denial.

(§ 1, Ord. 1193-06 (CM), eff. April 27, 2006, as amended by § 2(3) (Exh. A), Ord. 1481-25 (CM), eff. October 9, 2025)

A request for a minor modification of an approved density bonus housing plan may be granted by the Zoning Administrator, or his or her designee, if the modification is substantially in compliance with the original density bonus housing plan and conditions of approval. Other modifications to the density bonus housing plan shall be processed in the same manner as the original plan. (§ 2(3) (Exh. A), Ord. 1481-25 (CM), eff. October 9, 2025)

(a)    Concurrent with the approval of a housing development, the City shall prepare a density bonus housing agreement providing for implementation of the density bonus housing plan and conditions of approval and consistent with any density bonus program guidelines adopted by Council resolution. The City may identify tenants or qualified purchasers as third party beneficiaries under the agreement.

(b)    Before the approval of any final or parcel map or issuance of any building permit for a housing development subject to this chapter, the density bonus housing agreement shall be executed by the City and the applicant and recorded as a lien against the entire housing development to ensure that the agreement will be enforceable upon any successor in interest. The density bonus housing agreement shall run with the land and bind future owners and successors in interest as required to ensure compliance with the provisions of this chapter.

(c)    Density bonus housing agreements for land dedication and day care centers shall contain provisions to ensure continued compliance with all conditions included in Sections 14-47.070 and 14-47.080, respectively.

(§ 1, Ord. 1193-06 (CM), eff. April 27, 2006, as amended by § 2(3) (Exh. A), Ord. 1481-25 (CM), eff. October 9, 2025. Formerly 14-47.150)

(a)    The City Attorney shall be authorized to enforce the provisions of this chapter and all density bonus housing agreements, regulatory agreements, covenants, resale restrictions, promissory notes, deed of trust, equity sharing agreements, and other requirements placed on inclusionary units, by civil action and any other proceeding or method permitted by law. The City may, at its discretion, take such enforcement action as is authorized under the Municipal Code and/or any other action authorized by law or by any regulatory document, restriction, or agreement executed under this chapter.

(b)    Failure of any official or agency to fulfill the requirements of this chapter shall not excuse any applicant or owner from the requirements of this chapter. No permit, license, map, or other approval or entitlement for a housing development shall be issued, including, without limitation, a final inspection or certificate of occupancy, until all applicable requirements of this chapter have been satisfied.

(c)    The remedies provided for herein shall be cumulative and not exclusive and shall not preclude the City from any other remedy or relief to which it otherwise would be entitled under law or equity.

(§ 1, Ord. 1193-06 (CM), eff. April 27, 2006, as amended by § 2(3) (Exh. A), Ord. 1481-25 (CM), eff. October 9, 2025. Formerly 14-47.160)