City Council
September 1, 2026
Density Bonus, Inclusionary Ordinance, and
Accessory Dwelling Unit Ordinance Update
Why Update these Ordinances?
•Align with State Legislation.
•Housing Element requires Density Bonus and
Inclusionary Housing to meet housing
objectives.
•Reduce Legal Risks of Noncompliance
•Enables enable efficient, transparent
application processing
State Law Context
•Density Bonus, Accessory Dwelling
Unit Ordinance allows qualifying
projects a by-right entitlement.
•State Law Preempts local zoning
standards.
•Very Narrow Criteria to Deny a project
•Inclusionary Ordinance helps fulfill
state-mandated affordable housing.
What’s Changing – Density Bonus
•Last Update in 2019
•Expanded Incentives and Concessions
•Reduced Parking Requirements near transit and
for low-income housing.
•Mixed-Use and Commercial Bonuses tied to
affordable housing partnerships in mixed-use
development.
•Updated Administrative Provisions i.e.:
definitions, procedures, and administrative rules.
Higher Density Bonus Ceilings
•Increased Density Bonus Limits
• Raises the base density bonus
from around 35 percent to up to 50
percent, allowing more units per
project.
•Additional Bonus for Affordability
• Projects qualifying for the
maximum base bonus can earn
extra density increases by
providing deeper affordability
levels.
Expanded Incentives and Parking
Reductions
•Expanded Incentive Options
• Up to five incentives are now available,
including height flexibility and mixed-use
allowances for affordable projects.
•Reduced Parking Requirements
• Near transit or for low and moderateincome housing.
•Parking
• Parking costs are a barrier and require
supporting studies for higher parking
ratios than State limits.
Mixed-Use and Commercial Development
Bonuses
•Bonuses for commercial projects with
affordable housing.
•Incentives include increased height, floor
area ratio, development intensity, and
reduced parking.
•Eligibility and benefits are dictated by
state law, offering limited local discretion
once criteria are met.
What’s Changing –Inclusionary
•Last Update in 2019
•Improves clarity and enforceability
•No change to inclusionary
percentages
•Clarified thresholds to qualify for
ownership (10%) and rental
standards (15%)
Who Must Comply - Inclusionary
1. Ownership projects (5+ units): 10%
inclusionary
2. Rental projects (5+ units): 15% total
inclusionary
3. Nonresidential projects: nexus fee
4. Exemptions to % requirements are
clarified
How Units are Provided
•Built with market units and dispersed
onsite.
•Comparable exterior design; 55-year
affordability.
•Alternatives when onsite infeasible:
•Off-site units, land dedication, rehab, or
in-lieu fee.
•In-Lieu fee helps support nonprofit housing
funding gaps.
What the Planning Commission and City
Council Still Controls
•Site Planning that meets standards and fit
within surrounding area as long as it is not
expensive.
•Conditions of Approval that fulfill public
health and safety or interfere with density
bonuses.
Last Update in 2024.
Clarifies JADU rules for size, occupancy, and rental use.
Eliminates impact fees for ADUs and JADUs.
Clarifies permit review timelines and appeal deadlines.
Simplifies administration by directly referencing State ADU standards.
On July 30, California Housing Defense Fund (CalHDF) confirmed that the ADU ordinance meets State law.
ADU Ordinance Update
Stacked ADU Concept
14 CEQA Determination & Next Steps
CEQA Guidelines
15061(b)(3). No foreseeable
Impacts.
CEQA Guidelines 21084(a)
and both Section 15002(i)(1)
– lack of Local Jurisdictional
Discretion – and Section
15061(b)(3) – General Rule
of Exemption – of the CEQA
Guidelines
Planning Commission
recommendation
City Council 1st Reading
September 1, 2026
City Council 2nd Reading
September 15, 2026
Send Ordinances to HCD