Agenda packet — Concord City Council, January 23, 2024 (part 3 of 4)

Ord. No. 24-XX 6
passage and adoption. In the event a summary of said Ordinance is published in lieu of the entire Ordinance, a certified copy of the full text of this Ordinance shall be posted in the office of the City Clerk at least five (5) days prior to its adoption and within fifteen (15) days after its adoption, including the vote of the Councilmembers. Additionally, a summary prepared by the City Attorney’s Office shall be published once at least five (5) days prior to the date of adoption of this Ordinance and once within fifteen (15) days after its passage and adoption, including the vote of the Councilmembers, in the East Bay Times, a newspaper of general circulation in the City of Concord.

Edi E. Birsan
Mayor
ATTEST:

Joelle Fockler, MMC
City Clerk
(Seal)
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Ord. No. 24-XX
7 Ordinance No. 24-XX was duly and regularly introduced at a regular meeting of the City Council of the City of Concord held on January 23, 2024, and was thereafter duly and regularly passed and adopted at a regular meeting of the City Council of the City of Concord on February 13, 2024, by the following vote:

AYES: Councilmembers -
NOES: Councilmembers -
ABSTAIN: Councilmembers -
ABSENT: Councilmembers -
I HEREBY CERTIFY that the foregoing is a true and correct copy of an ordinance duly and regularly introduced, passed, and adopted by the City Council of the City of Concord, California.

Joelle Fockler, MMC
City Clerk
Attachments:

Exhibit A: CMC Section 18.20.030 Definitions
Exhibit B: CMC Chapter 18.185 Affordable Housing

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Concord Municipal Code
Exhibit A to Attachment 1

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18.20.030 Definitions.

Affordable Housing Definitions.
“Affordable Housing Agreement” means a legally binding agreement between a developer and the City to ensure that the requirements of CDC Chapter 18.185 are satisfied. The agreement, among other things, shall establish: the number of affordable units, their size, location, terms, conditions of affordability, and production schedule.
“Affordable ownership cost” means a sale price that results in a monthly housing cost (including mortgage principal and interest, property taxes, utilities, property insurance and homeowners’ association fees, if any) that does not exceed one-twelfth of 35 percent of the maximum annual income for a household of the applicable income level (very low, low or moderate income). “Affordable ownership unit” means an ownership dwelling unit that is offered for purchase at an affordable ownership cost only to moderate-, low-, or very low-income household. “Affordable rent” means monthly rent (including utility costs based on utility allowances determined annually by the Contra Costa Housing Authority) that does not exceed one-twelfth of 30 percent of the maximum annual income for a household of the applicable income level (very low, low or moderate income).
“Affordable rental unit” means a rental dwelling unit that is offered for rent at an affordable rent only to a moderate-, low-, or very low-income household.
“Affordable unit” means a dwelling unit that has a sales price or rent restricted by CDC Chapter

18.185.
“Affordable sales price” means a sales price at which moderate-, low-, or very low-income households can qualify for the purchase of an affordable unit, calculated on the basis of underwriting standards of mortgage financing available for development, with appropriate adjustments for household size.
“Area median income” means the median income for Contra Costa County, adjusted for household size, as established pursuant to California Code of Regulations, Title 25, Section 6932 (or its successor provision).
“Child care facility,” as used in Chapter 18.185 CDC, means a child care facility other than a family day care home, including but not limited to infant centers, preschools, extended day care facilities, and school age child care centers.
“Density bonus” means an increase in the number of dwelling units authorized for a particular parcel of land above the maximum residential density as provided for in Density Bonus Law as incorporated into this code by CDC 18.185.050.
“Density Bonus Law” means Government Code Section 65915 et seq., as amended from time to time, and incorporated into this code by CDC 18.185.050. “Density bonus unit” means residential units which exceed the otherwise maximum residential density for the development site.

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The Concord Municipal Code is current through Ordinance 22-13, passed December 6, 2022. “Economically feasible” means when a housing project can be built with a reasonable rate of return.

The housing developer’s financial ability to build the project shall not be a factor. “For-sale project” means a residential project, or portion thereof, that includes the creation of one or more residential living units that may be sold individually, including a condominium, stock cooperative, community apartment, or attached or detached single-family home. “Household income” means the combined adjusted gross income for all adult persons living in a living unit.
“Housing cost” means the sum of actual or projected monthly payments for all of the following associated with for-sale affordable units: principal and interest on a mortgage loan, including any loan insurance fees, property taxes and assessments, fire and casualty insurance, property maintenance and repairs, homeowners’ association fees, and a reasonable allowance for utilities. “Inclusionary unit” means an affordable unit that has a sales price or rent restricted by Chapter

18.185 CDC.
“Low-income household” means a household whose combined annual income does not exceed the qualifying limit of 80 percent of area median income, adjusted for household size, for “lower income households” established pursuant to Health and Safety Code Section 50079.5. “Market-rate unit” means a dwelling unit that is not legally restricted in terms of price or rent. “Mixed income” means a project which includes a combination of affordable and market rate units.

At least 40 percent of the units in such a project must be affordable to very low-, low- or moderate-income households.
“Moderate-income household” means a household whose combined annual income does not exceed the qualifying limit of 120 percent of area median income, adjusted for household size, for “persons and families of low or moderate income” established pursuant to Health and Safety Code Section 50093.
“Ownership project” means a development project containing single-family detached dwelling units or multifamily dwelling units (e.g., condominiums, townhouses or duets) that will be offered for sale, not for rent.
“Qualified households” means a household which meets the specified eligibility criteria for a particular type of affordable housing unit.

Qualifying Affordable Housing (or Mixed Income) Project. For the purposes of CDC 18.185.060 (Affordable housing incentive program), this includes:

A. A rental project in which at least 40 percent of the units are affordable to low- or very low-income households. At least half of these units, or 20 percent of the units in the total project, must be affordable to very low-income households; or
B. A for-sale project in which at least 40 percent of the units are affordable to moderate-, low-, or very low-income households. At least half of these units, or 20 percent of the total units in the project, must be affordable to low- or very low-income households. “Rehabilitate (Rehabilitated Unit)” means rehabilitation, the value of which constitutes 25 percent of the after rehabilitation value of the dwelling, inclusive of the land value.

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The Concord Municipal Code is current through Ordinance 22-13, passed December 6, 2022. “Rental project” means a development project containing single-family detached dwelling units or multifamily dwelling units (e.g., apartments, condominiums, townhouses, or duets) that will be offered for rent, not for sale.
“Residential development project” means any development project that includes the construction of one or more dwelling units, including exclusively residential and mixed-use projects. “Review authority” means the individual, department, commission, or elected body authorized to make the final decision on an application pursuant to Chapter 18.150 CDC. “Senior citizen” means persons who are:

A. At least 62 years of age; or
B. At least 55 years of age in a senior citizen housing development, as defined by state and federal law.
“Senior citizen housing” means residential development of one of the following types:

A. Assisted housing units for senior citizens; or
B. Housing intended for, and solely occupied by, persons at least 62 years of age; or C. Residential units developed, substantially rehabilitated, or substantially renovated for, senior citizens with at least 35 dwelling units and meets the reporting requirements of state and federal law.

Eligibility for a density bonus or other incentive for senior citizen units must be in conformity with state and federal laws governing senior housing projects. “Very low-income household” means a household whose combined annual income does not exceed the qualifying limit of 50 percent of area median income, adjusted for household size, for “very low-income households” established pursuant to Health and Safety Code Section 50105.

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Exhibit B to Attachment 1
Concord Municipal Code
Chapter 18.185 AFFORDABLE HOUSING

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Chapter 18.185

AFFORDABLE HOUSING
Sections:

18.185.010 Purpose.

18.185.020 Applicability.

18.185.030 Review authority.

18.185.040 Inclusionary housing requirements.

18.185.050 Density bonus program.

18.185.060 Affordable housing incentive program.

18.185.070 Affordable housing agreements.

18.185.080 Application requirements and review.

18.185.090 Duration of affordability.

18.185.100 Compliance monitoring fees.

18.185.010 Purpose.

A. The purpose of this chapter is to facilitate and encourage the development of housing affordable to a broad range of households with varying income levels within the City. It is intended to implement the City’s general plan housing element policies and programs pertaining to providing housing to all economic segments, wi th specific focus on addressing the need for housing affordable to very low-, low-, and moderate-income households. In addition, this chapter is intended to ensure that at least a minimum percentage of units affordable to very low -, low-, and/or moderate-income households is included within new residential developments and that appropriate incentives are established to encourage the inclusion of affordable units beyond the stated minimum. This chapter is further intended to allow for density bonuses and related incentives consistent with state Density Bonus Law.

B. Terms referenced in this section are defined in CMC 18.20.030 under the subheading “Affordable Housing Definitions.” [Ord. 12-4. DC 2012 § 122-576].

18.185.020 Applicability.

A. The provisions of this chapter apply to residential development projects. More specific applicability provisions are noted below:

1. CMC 18.185.040 (Inclusionary housing requirements) requires the inclusion of a minimum percentage of affordable housing units in all projects with five or more units, with the exception of projects noted in CMC

18.185.040(B). Alternative measures for compliance with this section, including, but not limited to, the payment of in-lieu fees or providing off-site affordable units are provided in the event that development of inclusionary units as part of the project is not feasible.

2. CMC 18.185.050 (Density bonus program) allows increased housing densities with a corresponding increase in affordable housing units consistent with state of California density bonus requirements.

3. CMC 18.185.060 (Affordable housing incentive program) includes incentives for projects incorporating affordable units and permits density bonuses above those provided under CMC 18.185.050, in accordance with the Concord housing element. CMC 18.185.060 is only applicable in specified districts where high density multifamily housing and residential mixed-use development is permitted. The provisions of CMC 18.185.060 are intended as an alternative to those in CMC 18.185.050 for qualifying projects, and are not cumulative.

Projects using the density bonus provisions of CMC 18.185.060 are not eligible for additional bonuses under CMC 18.185.050.

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B. Affordable housing units are units which are specifically designated for very low -, low-, or moderate-income households.

C. The standards in this chapter are supplemental to, and supersede when in conflict with, the standards in the applicable districts in Division II of this title (Zoning Districts – Uses and Standards) and in other divisions of the development code, except that the provisions of CMC Chapter 18.530 (Nonconforming Uses, Structures, and Parcels) and Chapter 18.535 (Nonconforming Physical Improvements/Property Upgrades) shall apply in all cases. [Ord. 12-4. DC 2012 § 122-577].

18.185.030 Review authority.

A. The Community Development Department shall be the review authority for residential development projects containing affordable housing units. All applications for density bonuses, concessions, incentives, and waivers shall be reviewed by the Community Development Director.

B. Design and site review, as described in CMC Chapter 18.415, is required unless exempted under Section

18.405.030 for all new affordable housing developments in all districts. This includes projects in which only a portion of the units are designated as affordable as well as those that are 100 percent affordable.

C. Projects containing affordable housing units are subject to all permit requirements and permitting procedures established by Division VII of this title (Permits and Permit Procedures). All predevelopment and public notice provisions established by that division shall apply.

D. The review authority for density bonuses and for the modifications to development standards identified in C MC

18.185.060 shall be the Community Development Department. The review authority may deny a density bonus by making those findings required by state Density Bonus Law. Such denials are appealable to the City Council. As indicated by Division VII of this title (Permits and Permit Procedures), Planning Commission and/or City Council approval shall only be required where a use permit or major subdivision approval is required, where a decision is being appealed, or where actions related to financial incentives or agreements are included. [Ord. 12- 4. DC 2012 § 122-578].

18.185.040 Inclusionary housing requirements.

A. Applicability. The following requirements shall apply to all residential development projects of five or more units. No application for a general plan amendment, rezoning, tentative subdivision map, parcel map, use permit, design and site review, hillside development use permit, planned development use permit, or building permit for a new residential development project shall be approved, nor shall any such new residential development project be constructed or occupied, without compliance with this chapter, except as noted in subsection (B) of this section (Exemptions).

1. All residential ownership projects, including condominiums, and rental projects shall either include the minimum number of inclusionary units required under subsection (C) of this section (Required Number of Inclusionary Units), or provide an alternative means of compliance pursuant to subsection (D) of this section (Alternative Means of Compliance).

2. If inclusionary housing units are provided an Affordable Housing Agreement governing the number, size, and location of affordable units, and terms of their use, shall be required pursuant to CMC 18.185.070.

B. Exemptions. This chapter shall not apply to the following:

1. A residential project consisting solely of the construction of one to four single -family dwelling units; or

2. The reconstruction of any dwelling units that were destroyed by a fire, flood, earthquake, or other act of nature; or

3. A development project that is converting an existing office building that has been available for commercial uses for a minimum of five years to a residential use.

C. Required Number of Inclusionary Units.

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Table 18.185.040
Required Percentage of Inclusionary Units

Residential Rental Projects 6% of the total number of rental units in a residential development project shall be inclusionary units (1% of all units in the project shall be very low-, 1% of all units in the project shall be low-, and 4% of all units in the project shall be moderate-income units). The first inclusionary unit shall be a moderate-income unit, the second inclusionary unit shall be a low-income unit, the third unit shall be a moderate-income unit, the fourth unit shall be a very-low income unit, the fifth and six units shall be moderate-income units, and this pattern shall then repeat for all subsequent inclusionary units.

2. Density Bonus Units. Affordable units under Density Bonus Law and meeting the levels of affordability in Table 18.185.040 shall count toward meeting the number of inclusionary units required under this section.

3. Fractional Units. When the application of the percentages set forth above (15% for residential ownership and 6% for residential rental) results in a number that includes a fractional unit, the fraction shall be rounded up to the next whole number if the fraction is one-half or more. If the result includes a fraction below one-half, the developer shall have the option of either rounding up to the next whole number and providing an additional inclusionary unit, or paying an in-lieu fee calculated by multiplying the fractional unit amount by the in-lieu fee set forth by that resolution per CMC 18.185.040(D)(1).

4. Projects of Five to Nine Units. The developer of a residential project containing from five to nine units, inclusive, shall have the option of either providing one inclusionary unit or selecting an alternative means of compliance. If a developer selects to pay an in-lieu fee, the amount shall be in conformance with subsection (C)(3) (Fractional Units) of this section.

D. Alternative Means of Compliance.

As an alternative to providing the required number of inclusionary units on- site, a developer may select an alternative below to achieve compliance with this section.

1. In-Lieu Fees.
a. Amount. A fee may be paid in lieu of providing inclusionary units for a residential project. The fee shall be set by resolution of the City Council and shall be an amount sufficient to pay the proportionate cost of providing inclusionary units elsewhere in the City. The fee may be periodically reviewed and updated by the City.
b. Use. All fee revenues shall be deposited in a restricted fund dedicated for the development of housing affordable to very low-, low-, and/or moderate-income households. Fees may also be used for administration of City affordable housing programs and to administer fair housing requirements for affordable units. c. Timing of Payment. In-lieu fees shall be paid prior to issuance of a building permit or as otherwise provided in the conditions of approval.

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d. Purpose of In-Lieu Fees. Any in-lieu fee adopted by the City Council is an alternative to the provision of on- site inclusionary units as otherwise required by subsection (C) of this section to ensure a more balanced housing supply for the general welfare of the public. The in-lieu fee may only be combined with providing inclusionary units onsite when it is in lieu of providing a fractional unit below one -half.

2. Rental Alternative. As an alternative to providing ownership inclusionary units onsite in residential ownership projects as required by CMC 18.185.040, and pursuant to Government Code Section 65589.8, the developer of a residential ownership project may provide rental inclusionary units. In such cases, the number of rental inclusionary units shall be provided at the same percentage as required for residential rental projects, pursuant to Table

18.185.040. To ensure compliance with the Costa-Hawkins Act (Civil Code Sections 1954.51 through 1954.535), the City may only approve such a proposal if the developer agrees in an Affordable Housing Agreement with the City to limit rents in consideration for a direct financial contribution or other form of assistance specified in Density Bonus Law.

3. Off-Site Alternatives.
a. As an alternative to the provision of on-site inclusionary units pursuant to this chapter, a developer for a residential project may propose a plan for providing affordable housing units at an off -site location within the City of Concord, as follows:
i. Acquire existing unrestricted multifamily units located elsewhere within the C ity and substantially rehabilitate those dwelling units. At least two rehabilitated dwelling units shall be provided for each inclusionary unit required pursuant to this chapter.
ii. Construct new affordable residential dwelling units. At least two new dwelling units shall be provided for each inclusionary unit required pursuant to this chapter. b. Any new or rehabilitated dwelling units shall be regulated pursuant to an A ffordable Housing Agreement, as applicable, between the developer and the City pursuant to CMC 18.185.070 (Affordable housing agreements). c. All off-site inclusionary units must be rehabilitated or constructed and occupied prior to or concurrently with the market-rate units for the related residential project. For phased residential projects, the required number of inclusionary units at each affordability level per phase shall be constructed and occupied in proportion to the total number of dwelling units in each phase of the project.

4. The developer may partner with a nonprofit affordable housing provider to meet its inclusionary housing obligations through one of the alternatives set forth in this subsection.

5. Authority to act on off-site alternative proposals shall rest with the final review authority regarding the underlying application.

E. Design Standards. The following design standards shall apply to all inclusionary units constructed pursuant to this chapter:

1. Inclusionary units shall be dispersed throughout the residential project and shall have access to all on- site amenities that are available to market rate units.

2. The construction quality and exterior design of inclusionary units shall be the same as the market-rate units by including the same exterior materials, roof forms and pitches, window treatments, and landscaping.

However, inclusionary units may be smaller in unit and lot size by 15% of the average square footage of the market-rate units and lot and have alternative interior finishes.

3. The average number of bedrooms for all inclusionary units must be equivalent to the average number of bedrooms for market rate units within the same residential project. When the average bedroom count results in a fraction, rounding shall occur pursuant to CMC 18.10.050(H).

F. Timing of Construction and Occupancy. All inclusionary units must be constructed and occupied prior to or concurrently with the market-rate units within the same residential development project. For phased residential

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development projects, the required number of inclusionary units at each affordability level per phase shall be constructed and occupied in proportion to the total number of dwelling units in each phase of the project.

G. Development Incentives.

1. The City may grant one or more of the following affordable housing development incentives in order to mitigate the financial impact of this chapter’s requirements on a particular residential project:
a. Provision of housing set-aside funds, tax exempt financing, or other financial assistance, as approved by the City Council.
b. A density bonus, incentive, concession, and/or waiver authorized pursuant to Density Bonus Law. c. Modification of zoning or development standards as described in CMC 18.185.060 (Affordable housing incentive program) for projects seeking a density bonus above and beyond the inclusionary housing requirements, as negotiated with and approved by the City. Authority to act on a request for these development incentives shall rest with the final review authority regarding the underlying application. d. Expedited processing of a development application and/or deferral of development fees, as authorized by the City Manager or designee. The terms and payment schedule for any deferred development fees shall be subject to the approval of the City Manager or designee and shall be incorporated into an Affordable Housing Agreement. Fees shall not be deferred any later than occupancy of the first dwelling unit in the residential project.

2. No development incentive shall be provided by the City pursuant to this section unless the developer enters into an Affordable Housing Agreement consistent with CMC 18.185.070.

I. Waivers or Adjustments. The City Council may approve a reduction or waiver of the requirements of this chapter for residential projects which: (1) are the subject of a disposition and development agreement, owner participation agreement, acquisition agreement, or other arrangement with the City of Concord; and (2) are receiving assistance from the City of Concord, such as relocation of occupants, acquisitions and disposition of land for site assemblage, use of eminent domain, write-down of land costs, fee waivers, or other forms of direct City assistance. The City may also adjust or waive the requirements of this chapter if the developer demonstrates that its strict application would affect a taking of private property without just compensation or otherwise constitute a violation of the United States Constitution, California Constitution or other applicable federal or state laws. Any developer requesting a reduction or waiver must submit a pro forma and such other financial analysis sufficient to support a determination that the reduction or waiver is necessary to ensure the economic feasibility of the project. Consistent with its responsibilities under the Public Records Act, the City shall take reasonable steps to protect the confidentiality of any proprietary financial information submitted by the developer.

J. Allocation Priority. In the event that there exists a greater number of qualified persons than the number of available inclusionary units for any residential project subject to this chapter, then first priority for allocating available inclusionary units shall be given to qualified purchasers or renters who live or work within the City of Concord. [Ord. 12-4. DC 2012 § 122-579].

18.185.050 Density bonus program.

A. Purpose. The purpose of this chapter is to provide incentives for the production of housing for lower income households (which, as set forth in California Health and Safety Code Section 50079.5(b), includes very low and extremely low-income households) and senior citizen households in accordance with Density Bonus Law. Density Bonus Law directs the City to provide density bonuses and/or other concessions or incentives under certain circumstances, in order to encourage the construction of low income housing. Other concessions or incentives, for example, could include the reduction or waiver of permit fees and/or utility fees and/or the provision of financial assistance in constructing public improvements. Density Bonus Law also directs the City to adopt an ordinance specifying how the City will comply with these provisions.

B. Applicability. The City may grant a density bonus for projects meeting the requirements of Density Bonus Law .

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C. Review Procedure.

1. The developer shall submit to the Community Development Department all materials as required by the checklist.

2. The review authority shall evaluate the application based on the following criteria:
a. The potential for the density bonus project to achieve the City's affordable housing goals as set forth in the housing element of the general plan;
b. The extent to which requested incentives or concessions are necessary to make the project economically feasible;
c. The compatibility of the project's development pattern with other land uses in the vicinity; and d. The project's compliance with the City's general plan, zoning, and development policies.

3. The review authority shall grant the incentives and concessions unless written findings can be made, based on substantial evidence, as specified in Density Bonus Law.

4. An executed Affordable Housing Agreement is required for all residential developments for which a density bonus and/or incentives, concessions, or waivers of development standards have been approved prior to the issuance of a building permit. The agreement shall be filed and recorded as a deed restriction on the property. The City shall provide periodic monitoring of compliance with the provisions of the deed restriction.

18.185.060 Affordable housing incentive program.

A. Purpose. The purpose of the affordable housing incentive program is to provide incentives above and beyond those offered by the density bonus program in CMC 18.185.050 (Density bonus program) in order to encourage the development of affordable and mixed income housing, consistent with the Concord housing element. The development standards listed in this section modify those established in other applicable divisions of the development code. The standards are intended to help Concord meet its fair share of the region’s affordable housing needs while improving and complementing the design of surrounding neighborhoods, protecting the use and enjoyment of neighboring properties, and promoting economic and environmental sustainability.

B. Applicability.

1. The provisions of this section shall apply to residential and mixed-use projects in the RM (residential medium density), RH (residential high density), community office (CO), NC (neighborhood commercial), CMX (commercial mixed-use), DMX (downtown mixed-use), and DP (downtown pedestrian) districts.

2. Where parcels within these districts are also covered by a transit station overlay designation and are proposed for qualifying affordable housing developments, the provisions in this section relating to additional density, additional floor area ratio, and reduced parking shall supersede those in Chapter 18.105 C MC (Transit Station Overlay District (TS)).

3. Where parcels within these zones are also covered by an airport overlay designation, all requirements of Chapter 18.100 CMC (Airport Overlay District (A)) shall apply.

4. Projects utilizing the density bonus provisions in this section are not eligible for additional density bonuses pursuant to CMC 18.185.050. The intent of the affordable housing incentive program is to provide an alternative to the density bonus program, and the bonuses are not additive.

C. Eligibility. The provisions of this section shall apply to all projects in eligible zoning districts meeting the following criteria:

1. For rental projects, at least 20 percent of the units in the project must be affordable to very low income households. Another 20 percent must be either affordable to low or very low income households. The total percentage of affordable units in the project must be at least 40 percent.

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2. For for-sale projects, at least 20 percent of the units must be affordable to low or very low income households. Another 20 percent must be affordable to households earning up to the area wide median income (e.g., 100 percent AMI). The total percentage of affordable units in the project must be at least 40 percent.

3. Development projects exceeding the affordability thresholds identified in subsection (C)(1) and (2) of this section are eligible for the provisions of this section.

4. A minimum parcel area of at least 10,000 square feet (prior to any subdivision associated with the proposed project) is required for a project to be eligible for the provisions of this section.

D. Increased Density and Floor Area Ratio. Qualifying affordable and mixed income housing developments may utilize the density and FAR standards in Table 18.185.060(A), in lieu of the density and FAR standards in Division II of this title.

Table 18.185.060(A)

Increased Density and Floor Area Ratio (FAR) Provisions for Qualifying Affordable Housing and Mixed Income Developments(1) Zone Maximum Base Density (specified
in Division II of this title)
Modified Density for Qualifying
Projects
Maximum Base FAR
(specified in Division II
of this title)
Modified FAR for
Qualifying Projects
(2)
RM 1 unit per 1,360 SF lot area (32
DU/AC)
1 unit per 970 SF lot area (40
percent bonus)

N/A N/A
RH 1 unit per 435 SF lot area (100
DU/AC)
1 unit per 300 SF lot area (45
percent bonus)

N/A N/A
NC 1 unit per 1,815 SF lot area (24
DU/AC)
1 unit per 1,300 SF lot area (40
percent bonus)

0.35 1.0
CO 1 unit per 1,360 SF lot area (32
DU/AC)
1 unit per 970 SF lot area (40
percent bonus)

1.0 1.4
CMX 1 unit per 1,090 SF lot area (40
DU/AC)
1 unit per 750 SF lot area (45
percent bonus)

1.0 1.5
DMX 1 unit per 435 SF lot area (100
DU/AC)
1 unit per 300 SF lot area (45
percent bonus)

6.0 6.0
DP 1 unit per 435 SF lot area (100
DU/AC)
1 unit per 300 SF lot area (45
percent bonus)

4.0 4.0
TS overlay Add 25 percent to base densities
above
Where 40 percent bonus is indicated
above, replace with 50 percent.

Where 45 percent bonus is indicated
above, replace with 55 percent.

Add 25 percent to base
FAR above
Add 20 percent to
base FAR above

(1) All densities are based on net developable area, excluding streets and unbuildable portions of the property. (2) FAR applies to mixed -use projects only. Projects that are 100 percent residential are not subject to an FAR requirement.

E. Lot Area and Dimension. Qualifying affordable and mixed income housing developments may utilize the lot area and dimension standards in Table 18.185.060(B), in lieu of the lot area and dimension standards in Division II of this title.

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Table 18.185.060(B)

Modified Lot Area and Lot Dimension Standards for Qualifying Affordable Housing and Mixed Income Developments (*)

Base Minimum Lot
Depth (as specified
in Division II of
this title)
Modified
Minimum Lot
Depth for
Qualifying
Projects
RM 1,920 (detached)
1,440 (attached)
1,800 (detached)
1,200 (attached)
24 feet (detached)
18 feet (attached)
22 feet (detached)
16 feet (attached)
80 feet (detached)
60 feet (attached)
70 feet
(detached)
50 feet (attached)
RH 5,000 4,000 50 feet 40 feet 100 80 feet
NC 10,000 10,000 100 feet 100 feet 100 feet 100 feet
CO 10,000 5,000 100 feet 50 feet 100 feet 80 feet
CMX 10,000 5,000 100 feet 50 feet 100 feet 80 feet
DMX 10,000 5,000 100 feet interior
110 feet corner
50 feet interior
60 feet corner
100 feet 80 feet
DP 5,000 4,000 50 feet interior
60 feet corner
40 feet interior
50 feet corner
100 feet 80 feet
TS overlay N/A N/A N/A N/A N/A N/A

(*) Lots smaller than the standards listed here may be created within a multifamily development that is subdivided into individual fee -simple units.

F. Lot Coverage. Qualifying affordable and mixed income housing developments in the RM and RH districts may utilize the lot coverage standards in Table 18.185.060(C), in lieu of the lot coverage standards in Division II of this title.

Table 18.185.060(C)

Modified Lot Coverage Standards for Qualifying Affordable Housing and Mixed Income Developments(*)

Zone Base Maximum Lot Coverage (as specified in Division II of this title)
Modified Maximum Lot Coverage for Qualifying
Projects
RM 60 percent (detached)
80 percent (attached)
70 percent (detached)
85 percent (attached)
RH 75 percent 85 percent

(*) For RM and RH zones only. Development in NC, CMX, DP, and DMX is not subject to lot coverage standards. Lot coverage for RH is for the entire project site. Where an RH site is subdivided into small fee simple parcels (e.g., condominiums), there is no lot coverage limit for the individual units.

G. Height. Qualifying affordable and mixed income housing developments may utilize the height standards in Table

18.185.060(D), in lieu of the height standards in Division II of this title.

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Table 18.185.060(D)

Modified Height Standards for Qualifying Affordable Housing and Mixed Income Developments

Zone Base Maximum Height (as specified in Division II of this title) Modified Maximum Height for Qualifying Projects RM 4 stories/40 feet 45 feet
RH 6 stories/60 feet 75 feet
NC 40 feet 45 feet
CO 30 feet 45 feet
CMX 30 feet 45 feet
DMX 200 feet 200 feet
DP 70 feet 85 feet
TS overlay N/A Add 20 percent to figures above

H. Setbacks. Qualifying affordable and mixed income housing developments shall be eligible for a 20 percent reduction in the setback standards that are otherwise required for each zone under Division II of this title, except as noted in subsection (I) of this section (Transitional Requirements). In the DMX zone, a 50 percent reduction in the required front setback shall be permitted (five feet instead of 10 feet).

I. Transitional Requirements. Qualifying affordable and mixed income housing developments shall be subject to all transitional requirements established by CMC 18.150.180 (Transitional requirements), including height limits and setbacks on properties abutting lower density residential zones.

J. Open Space. Qualifying affordable and mixed income housing developments may utilize the open space standards in Table 18.185.060(E), in lieu of the open space standards in CMC 18.150.100.

Table 18.185.060(E)

Modified On-Site Open Space Requirements for Qualifying Affordable Housing and Mixed Income Developments

Zone
Base On-Site Open Space Sq. Ft./Unit
(As Specified in Division II of This
Title)
Modified On-Site Open Space/Unit for
Qualifying Projects
Modified On-Site Open Space/Unit for
Qualifying Projects if within 500 Feet
of a Public Park One Acre or Larger
RM 200 SF/unit, 60 SF of which must be
private (*)
175 SF/unit, 60 SF of which must be
private
150 SF/unit, 60 SF of which must be
private
RH 200 SF/unit, 60 SF of which must be
private
125 SF/unit, 50 SF of which must be
private
100 SF/unit, 40 SF of which must be
private
NC 200 SF/unit, 60 SF of which must be
private
150 SF/unit (private and/or common) 125 SF/unit (private and/or common) CO 200 SF/unit, 60 SF of which must be
private
150 SF/unit (private and/or common) 125 SF/unit (private and/or common) CMX 200 SF/unit, 60 SF of which must be
private
150 SF/unit (private and/or common) 125 SF/unit (private and/or common) DMX 200 SF/unit, 60 SF of which must be
private
100 SF/unit (private and/or common) 75 SF/unit (private and/or common) DP 200 SF/unit, 60 SF of which must be
private
100 SF/unit (private and/or common) 75 SF/unit (private and/or common)

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Zone
Base On-Site Open Space Sq. Ft./Unit
(As Specified in Division II of This
Title)
Modified On-Site Open Space/Unit for
Qualifying Projects
Modified On-Site Open Space/Unit for
Qualifying Projects if within 500 Feet
of a Public Park One Acre or Larger
TS overlay No further reduction beyond what is
specified above
No further reduction beyond what is
specified above
No further reduction beyond what is
specified above

(*) Higher standards apply in small lot subdivisions. See Chapter 18.155 CMC.

K. Parking.

1. Qualifying affordable and mixed income housing developments may utilize the parking standards in Table

18.185.060(F), in lieu of the parking requirements in Division IV of this title.

Table 18.185.060(F)

Modified Parking Standards for Qualifying Affordable Housing and Mixed Income Developments

Bedroom Count Base Parking Standards
Modified Parking Standards for
Qualifying Affordable Housing
Developments
Modified Parking Standards for
Qualifying Affordable Housing
Developments within 0.5 Mile of
BART
Studio 1 0.67 0.5
1 bedroom 1.5 1 0.75
2 bedroom 2 1.5 1
3+ bedroom 2.5 spaces, plus 0.5 space for each
additional bedroom above 3

1.75 spaces plus 0.25 spaces for each
additional bedroom above 3

1.25 spaces plus 0.25 spaces for each
additional bedroom above 3
Guest spaces 1 space for each four units None required None required TS overlay Can reduce above requirements
by 25 percent
Can reduce above requirements as
noted in the last column of this table
N/A

2. As indicated in Chapter 18.160 CMC (Parking, Loading, and Access), the review authority may grant further reductions for senior and special needs housing based on quantified information provided by the applicant that documents the need for fewer spaces.

3. Other parking standards prescribed by Chapter 18.160 CMC (Parking, Loading, and Access) continue to apply, to the extent they do not conflict with the numeric requirements of this table.

4. Pursuant to California Government Code Section 65915(p)(2), an affordable or mixed income housing development may meet a portion of its on-site parking requirement through tandem and/or uncovered spaces.

5. Affordable housing developments in the DP and DMX zones which are within an established vehicle parking district may pay an in-lieu parking fee as prescribed by CMC 18.160.060(B) (In-Lieu Fees) rather than providing required parking on site or off site.

L. Use Permit Requirements. As indicated in Table 18.185.060(G), the following adjustments to allowed uses and permit requirements shall be permitted for qualified affordable and mixed income housing developments:

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Table 18.185.060(G)

Adjustments to Allowed Uses and Permit Requirements for Qualifying Affordable Housing and Mixed Income Developments

Zone
Use Allowances and Permit Requirements for
Multifamily Residential Use, as Specified in Division II of This Title
Use Allowances and Permit Requirements for Qualifying
Affordable Housing and Mixed Income Projects(1)
RM Zoning Clearance Only Zoning Clearance Only
RH Zoning Clearance Only Zoning Clearance Only
NC Major Use Permit Major Use Permit
CO Major Use Permit Minor Use Permit
CMX Zoning Clearance Only Zoning Clearance Only
DMX Major Use Permit Zoning Clearance Only
DP Major Use Permit Minor Use Permit

(1) Limitations on ground floor residential uses apply in the NC and DP zones, as noted in Division II of this title. Ground floor residential uses are not permitted in the NC zone and are not permitted on sites facing Todos Santos Plaza in the DP zone. At the discretion of the review authority, a project which meets the affordability criteria listed in this chapter located on a site of at least two acres in the NC zone may include ground floor residential uses, provided the ground floor street frontage is developed with commercial use and residential uses occupy less than 50 percent of the ground floor area.

M. Additional Incentives. Consistent with the density bonus provisions established by C MC 18.185.050, affordable and mixed income housing developments are eligible for additional incentives, including expedited permit processing, reduced or deferred fees, and direct financial aid through housing assistance programs.

N. Neighborhood Meeting. Consistent with CMC Chapter 18.405 (Permit Application Filing and Processing), a neighborhood meeting shall be required following submittal of an application to the planning division for any project requesting affordable housing incentives that is located within a residential zoning district or within 300 feet of a low density residential (RR, RS, RL) zoning district, as measured from the edge of the parcel. Public notification for this meeting shall comply with the city’s notification requirements and procedures, including mailed or delivered notices to all properties within 500 feet of the subject parcel.

O. Duration of Affordability. The term of affordability for units approved under this program shall comply with CMC 18.185.090 (Duration of affordability). [Amended during 2014 recodification; Ord. 12- 4. DC 2012 § 122- 581].

18.185.070 Affordable housing agreements.

A. Any project subject to the inclusionary housing requirements of CMC 18.185.040 or utilizing the density bonus or development incentives of CMC 18.185.050 or 18.185.060 shall require the developer to enter into an Affordable Housing Agreement. The form and contents of the agreement shall be consistent with the provisions of Sections 65864 to 65869 of the California Government Code and shall be subject to review by the City Attorney in consultation with the Community Development Department. Affordable H ousing Agreements shall be recorded against the property prior to the issuance of building permits in order to ensure implementation of the require ments of this chapter.

B. The agreement shall include, but is not limited to, the following:

1. The total number of units approved for the development, including the number of affordable housing units;

2. The location, unit sizes (in square feet), lot size (in square feet, if applicable), and number of bedrooms of the affordable housing units;

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3. A description of the household income groups to be accommodated by the project and a calculation of the affordable rent or sales price;

4. The party responsible for certifying sales prices or annual rental rates, and the process that will be used for certification;

5. A schedule for the completion and occupancy of the affordable housing units;

6. Duration of affordability for the affordable housing units, including provisions for resale and deed restrictions on affordable housing units that are binding on property upon sale or transfer;

7. Provisions covering the expiration of the agreement, including notice prior to conversion to market -rate units and a right of first refusal for the City and/or the distribution of accrued equity for for-sale units;

8. A description of the remedies for breach of the agreement by either party.

C. Additional Agreement Provisions for For-Sale Housing. In the case of for-sale housing, the affordable housing agreement shall provide the following conditions governing the initial resale and use of affordable units:

1. Affordable units shall, upon initial sale, be sold to eligible low- or moderate-income households at an affordable sales price and housing cost, or to qualified households as defined by the development code.

2. The initial purchaser of each affordable unit shall execute an instrument or agreement approved by the C ity restricting the sale of the unit in accordance with this chapter during the affordability term. Such instrument or agreement shall be recorded against the parcel and shall contain such provisions as the C ity may require in order to ensure continued compliance with this chapter.

3. Affordable units which are initially owner-occupied may not be rented by the owner, except in cases of substantial hardship including, but not limited to, active military duty and illness, and on specified terms as provided in the Affordable Housing Agreement acceptable to the Community Development Director.

4. The maximum sales price permitted on resale of an affordable unit shall be the lower of: (a) fair market value or (b) the seller’s lawful purchase price, increased by the rate of increase of area median income during the seller’s ownership. The sales price may also be modified to account for capital improvements made by the seller, deferred maintenance, and the seller’s necessary costs of sale. The C ity shall enter into an equity sharing agreement in accordance with Government Code Section 65915(c) to address disposition of proceeds upon resale.

5. The City may suspend resale restrictions on for-sale units in the event they create an economic hardship for the owner due to periods of significant real estate market decline, based on the criteria defined in the C ity of Concord’s inclusionary housing program guidelines.

6. The resale restrictions shall provide an option to the City to purchase any affordable owner-occupancy unit at the maximum price which could be charged to a purchaser household, at any time the owner proposes sale.

D. Additional Agreement Provisions for Rental Housing. In the case of rental housing development, the affordable housing agreement shall provide for the following conditions governing the use of affordable units during the use restriction period:

1. The rules and procedures for qualifying households, establishing affordable rent rates, filling vacancies, and maintaining affordable units for qualified households;

2. Provisions requiring owners to verify household incomes and maintain books and records to demonstrate compliance with this section;

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

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4. A requirement to apply the same rental terms and conditions to the households of affordable units as are applied to other households, except as required to comply with this chapter (for example, rent levels) or with other applicable government subsidy programs. Discrimination against persons receiving housing assistance is prohibited. [Ord. 12-4. DC 2012 § 122-582].

18.185.080 Application requirements and review.

A. Submittal Requirements. An developer seeking a density bonus, development concession or incentive, and/or other affordable housing program incentive pursuant to CMC 18.185.050 or 18.185.060 shall submit an application which complies with the submittal requirements set by Division VII of this title (Permits and Permit Procedures). If not already included in that submittal, the following additional information shall b e required:

1. The total number of units in the project;

2. The number and affordability level of proposed affordable housing units or other units to be produced through density bonus provisions;

3. The zoning and general plan designations and assessor parcel number(s) of the project site;

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

5. If a concession or incentive is requested, the application shall describe each specific development concession or incentive sought, and why it is necessary to provide the affordable units;

6. If requesting a density bonus based on land donation, information sufficient for the City to determine that the proposed donation conforms with the requirements of Density Bonus Law;

7. If requesting an additional density bonus or incentive based on the inclusion of a child care facility in accordance with Density Bonus Law as specifically set forth in Government Code Section 65915(h), the application must:
a. Provide the location of the proposed child day care facility and the proposed operator; b. Agree to have contracted with a child day care facility operator for operation of the child day care facility before the first building permit is issued;
c. Agree that the child day care facility will be in operation when the first certificate of occupancy is issued; and
B. An application for a density bonus, development incentive or concession, or other affordable housing program incentive, shall be processed concurrently with any other application(s) required for the development project. Final approval or disapproval of an application shall be made by the review authority unless direct financial assistance is requested. If direct financial assistance is requested, the City Council shall have the sole authority to make the final decision on the application.

C. Following receipt of the application and in a manner consistent with the Permit Streamlining Act and CM C Chapter 18.405 (Permit Application Filing and Processing), the City shall provide to a developer a letter which identifies project issues of concern and the procedures for compliance with this chapter. The planning division shall inform the developer that the requested concession(s) or incentive(s) shall be recommended for consideration with the proposed housing development, or that alternative or modified concession(s) or incentive(s) shall be recommended.

D. The review authority provisions established by CMC 18.185.030 (Review authority) and Division VII (Permits and Permit Procedures) of this title shall apply to all applications for a density bonus or affordable housing incentive or concession. [Ord. 12-4. DC 2012 § 122-583].

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18.185.090 Duration of affordability.

The duration of affordability for units created through the inclusionary housing, density bonus, or affordable housing incentive provisions of this chapter shall be as follows:

A. The affordable sales price for ownership units shall be restricted for a period of 45 years pursuant to an Affordable Housing Agreement recorded against the property. Resale restrictions may be released on a case by case basis by the City Manager or designee due to undue hardship or a severe downturn in the residential real estate market, as detailed in the Affordable Housing Agreement.

B. The monthly rent for affordable rental units shall be restricted for a period of 55 years pursuant to an A ffordable Housing Agreement recorded against the property. [Ord. 12-4. DC 2012 § 122-584].

18.185.100 Compliance monitoring fees.

The City Council by resolution may establish compliance monitoring fees to recover the C ity’s actual, reasonable costs incurred for ongoing implementation of this chapter. For affordable ownership units, the fee shall be payable by the developer or future seller of the property at the time of each sale or transfer during the term of the applicable Affordable Housing Agreement. For affordable rental units, the property owner shall pay an annual fee each year during the term of the applicable Affordable Housing Agreement. [Ord. 12-4. DC 2012 § 122-585].

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Res. No. 24-XX 1

BEFORE THE CITY COUNCIL OF THE CITY OF CONCORD

COUNTY OF CONTRA COSTA, STATE OF CALIFORNIA
A Resolution Amending the Inclusionary Housing Fee
by Amending Exhibit A to Resolution No. 78-6042
Establishing Fees and Charges for Various Municipal
Services in the City of Concord
Resolution No. 24-XX
/
WHEREAS, the City Council adopted Resolution No. 78-6042 on October 9, 1978, establishing a master resolution within which various municipal fees and charges would be located; and
WHEREAS, on January 23, 2024, the City Council introduced Ordinance No. 24-XX (An Ordinance amending Concord Municipal Code, Title 18 (Development Code) Section 18.20.030 (Definitions) and CDC Chapter 18.185 (Affordable Housing)) (“Ordinance”); and WHEREAS, the Ordinance allows the payment of an in-lieu fee to meet the requirements of the Inclusionary Housing Program; and
WHEREAS, amendments to Table T3a, Building Division Fees, to Resolution No. 78-6042 are necessary to establish the appropriate in-lieu fees; and WHEREAS, the City Council held a public hearing on January 23, 2024, at which time members of the public were afforded the opportunity to address the City Council regarding this matter; and
WHEREAS, upon the close of the public hearing, the City Council deliberated upon the oral report from City staff, the written report from City staff dated January 23, 2024, together with oral and written testimony and other relevant information received during the course of the public hearing (“Fee Information”); and
WHEREAS, the City Council has determined that Table T3a, Building Division Fees, in Exhibit A to Resolution No. 78-6042 shall be amended to include Inclusionary Housing In-Lieu Fees as indicated in Exhibit A of this Resolution.

Attachment 2

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Res. No. 24-XX 2

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CONCORD DOES RESOLVE AS FOLLOWS:

Section 1. The above recitals (which are hereby incorporated by reference) are accurate and constitute findings in this matter and, together with the Fee Information, serve as an adequate and appropriate evidentiary basis for the findings and actions set forth in this Resolution and further makes the following findings.

Section 2. CEQA. Pursuant to the California Environmental Quality Act of 1970, Public Resources Code §21000, et seq., as amended and implementing State CEQA Guidelines, Title 14, Chapter 3 of the California Code of Regulations (collectively, "CEQA"), the revision to the City's Master Fees and Charges Schedule does not constitute a "project" within the meaning of Public Resources Code Section 21065, 14 Cal Code Reg. Section 15060(c)(2), 15060(c)(3), or 15378 because it has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. In addition, the revision is categorically exempt pursuant to Section 15061(b)(3), "Review for Exemptions" of the CEQA Guidelines because there is no possibility that the update to the City's Master Fees and Charges Schedule may have a significant effect on the environment, and no further environmental review is required. Moreover, even if the revision does comprise a project for CEQA analysis, it falls within the "common sense" CEQA exemption set forth in CEQA Guidelines Section 15061(b)(3), excluding projects where "it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment." None of the exceptions identified in CEQA Guidelines Section 15300.2 are present. No unusual circumstances are present. This determination reflects the City's independent judgment and analysis.

Section 3. The City Council has reviewed, considered, and evaluated all of the fee information prior to acting upon the fee revision.

Section 4. The City Council does hereby amend the City of Concord Master Fee Schedule Table T3a, Building Division Fees, in Exhibit A to Resolution No. 78-6042 to adopt revisions set forth in Exhibit A hereto, effective thirty (30) days after the second reading of the Ordinance.

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Res. No. 24-XX 3
Section 5. The documents and other materials that constitute the record of proceedings upon which the City Council has based its decision are located in and may be obtained from the City of Concord City Clerk, 1950 Parkside Drive, Concord, CA 94519.

PASSED AND ADOPTED by the City Council of the City of Concord on January 23, 2024, by the following vote:

AYES: Councilmembers -
NOES: Councilmembers -
ABSTAIN: Councilmembers -
ABSENT: Councilmembers -
I HEREBY CERTIFY that the foregoing Resolution No. 24-XX was duly and regularly adopted at a regular meeting of the City Council of the City of Concord on January 23, 2024.

Joelle Fockler, MMC
City Clerk
APPROVED AS TO FORM:

Susanne Meyer Brown
City Attorney
Exhibit A: Redline of Table T3a –Building Division Fees

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Exhibit A. Resolution 78 6042
Fees and Charges for Various Municipal Services
T3a - Building Division Fees
Date of Last Adoption: 8-8-2023
Res. No: 23.6042.3
Current Fee
Adopted Changes
with effective dates
other than 7/1/23
A. Administrative Fee
Administrative Fee
$60.50 + 0.000789V
where V= valuation of construction.

The administrative fee applies to each permit application or revision application.

This fee shall be paid at time of application.

The fee is a maximum of $550.

B. Technology Fee
A surcharge of the sum of administrative processing, plan review, and inspection fees.

10.5%
This fee applies to Building, Engineering and Planning Divisions.

C. Solar PV Permits
C.1 Solar PV Permit (Residential and Commercial - Includes Drawing Plan Review) Base Plan Review Fee (0-15 kW) $89.50
Additional Plan Review Fee (per kW 15-50 kW) $2.56
Additional Plan Review Fee (per kW over 50 kW) $0.90
Base Inspection Fee (0-15 kW) $222
Additional Inspection Fee (per kW 15-50 kW) $6.34
Additional Inspection Fee (per kW over 50 kW) $1.11
(kW is AC kilowatts)
C.2 Solar PV Permit (Residential 38.4kW max - SolarAPP Auto-Permit) Base Inspection Fee (0-15 kW) $311.50
Description
Exhibit A to Attachment 2

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Exhibit A. Resolution 78 6042
Fees and Charges for Various Municipal Services
T3a - Building Division Fees
Date of Last Adoption: 8-8-2023
Res. No: 23.6042.3
Current Fee
Adopted Changes
with effective dates
other than 7/1/23
Description
Additional Inspection Fee (per kW 15-38.4 kW) $8.90
(kW is AC kilowatts)
D. Work Item Based Fees
D.1 Reroof Permit Inspection Fee (Residential and Commercial) Inspection Fee $86.50 + 0.0865A
Where A = roof area in square feet.

D.2 Residential Furnace Replacement Inspection Fee $173.00 D.3 Residential A/C Replacement Inspection Fee $173.00 D.4 Residential HVAC Replacement Inspection Fee $259.50 D.5 Commercial Electrical Service Replacement Inspection Fee $432.50 D.6 Residential Electrical Service Replacement Inspection Fee $173.00 D.7 Residential Sewer Line Replacement Inspection Fee $173.00 D.8 Residential Water Heater Replacement Inspection Fee $173.00 D.9 Residential Water Line Replacement Inspection Fee $173.00 D.10 Residential Window/Door Replacement Inspection Fee (Single Family and Duplex Replacement Only) Retrofit (0-6 windows/doors) $173.00
Retrofit (7+ windows/doors) $259.50
New Construction (0-6 windows/doors) $259.50
New Construction (7+ windows/doors) $346.00
D.11 Residential In-Ground Pool (Single Family and Duplex Only) Plan Review Fee $322.50
Inspection Fee
$692.00

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Exhibit A. Resolution 78 6042
Fees and Charges for Various Municipal Services
T3a - Building Division Fees
Date of Last Adoption: 8-8-2023
Res. No: 23.6042.3
Current Fee
Adopted Changes
with effective dates
other than 7/1/23
Description
D.12 Portable Spas and Portable Pools Placed at Grade (Single Family and Duplex Residential Only) Plan Review Fee $53.75
Inspection Fee $86.50
E. Not Used
F. General Building Valuation-Based Fees
F.1. General Building Valuation-Based Plan Review Fees Valuation Range
$0.00 to $2,000 Flat Fee $83.93
$2,000.01 to $25,000.00 Base Cost (for first $2,000) $83.93 Each additional $1,000 or fraction thereof $9.93
$25,000.01 to $50,000.00 Base Cost (for first $25,000) $312.32 Each additional $1,000 or fraction thereof $23.78
$50,000.01 to $100,000.00 Base Cost (for first $50,000) $906.82 Each additional $1,000 or fraction thereof $18.76
$100,000.01 to $500,000.00 Base Cost (for first $100,000) $1,844.82 Each additional $1,000 or fraction thereof
$13.70
$500,000.01 to $1,000,000.00 Base Cost (for first $500,000) $7,324.82 Each additional $1,000 or fraction thereof $10.96
$1,000,000.01 and up Base Cost (for first $1,000,000) $12,804.82 Each additional $1,000 or fraction thereof $0.45
Includes required plan review for all construction codes adopted by the City. For projects where the scope of work only includes Mechanical,

Page 54 of 255 ends

Exhibit A. Resolution 78 6042
Fees and Charges for Various Municipal Services
T3a - Building Division Fees
Date of Last Adoption: 8-8-2023
Res. No: 23.6042.3
Current Fee
Adopted Changes
with effective dates
other than 7/1/23
Description
F.2. General Building Valuation-Based Inspection Fees
Valuation Range Fee
$0.00 to $2,000 Flat Fee $130.09
$2,000.01 to $25,000.00 Base Cost (for first $2,000) $130.09 Each additional $1,000 or fraction thereof $14.78
$25,000.01 to $50,000.00 Base Cost (for first $25,000) $470.03 Each additional $1,000 or fraction thereof $18.81
$50,000.01 to $100,000.00 Base Cost (for first $50,000) $940.28 Each additional $1,000 or fraction thereof $25.33
$100,000.01 to $500,000.00 Base Cost (for first $100,000) $2,206.78 Each additional $1,000 or fraction thereof $20.93
$500,000.01 to $1,000,000.00 Base Cost (for first $500,000) $10,578.78 Each additional $1,000 or fraction thereof $22.10
$1,000,000.01 and up Base Cost (for first $1,000,000) $21,628.78 Each additional $1,000 or fraction thereof $1.58
G. Miscellaneous Mechanical, Electrical, and Plumbing (MEP) Valuation-Based Fees G.1. Valuation-Based MEP Plan Review Fees
Includes required inspections for all construction codes adopted by the City. For projects where the scope of work only includes Mechanical, Includes required plan review for projects where the scope of work only includes Mechanical, Electrical, and/or Plumbing work. For work that includes other construction codes, use the General Building Valuation-Based Plan Review Fees table instead. The fee includes one round of comments plus one back check. Additional plan review required following the back check will be charged based upon the plan review hourly rate.

Thi f h ll b id t ti f li ti

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Exhibit A. Resolution 78 6042
Fees and Charges for Various Municipal Services
T3a - Building Division Fees
Date of Last Adoption: 8-8-2023
Res. No: 23.6042.3
Current Fee
Adopted Changes
with effective dates
other than 7/1/23
Description
Valuation Range Fee
$0.00 to $2,000 Flat Fee $57.15
$2,000.01 to $25,000.00 Base Cost (for first $2,000) $57.15 Each additional $1,000 or fraction thereof $3.96
$25,000.01 to $50,000.00 Base Cost (for first $25,000) $148.23 Each additional $1,000 or fraction thereof $12.50
$50,000.01 to $100,000.00 Base Cost (for first $50,000) $460.73 Each additional $1,000 or fraction thereof $10.43
$100,000.01 to $500,000.00 Base Cost (for first $100,000) $982.23 Each additional $1,000 or fraction thereof $4.61
$500,000.01 to $1,000,000.00 Base Cost (for first $500,000) $2,826.23 Each additional $1,000 or fraction thereof $5.53
$1,000,000.01 and up Base Cost (for first $1,000,000) $5,591.23 Each additional $1,000 or fraction thereof $0.23
G.2. Valuation-Based MEP Inspection Fees
Valuation Range
$0.00 to $2,000 Flat Fee $117.55
Includes required inspections for projects where the scope of work only includes Mechanical, Electrical, and/or Plumbing work. For work that includes other construction codes, use the General Building Valuation-Based Inspection Fees table instead.

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Exhibit A. Resolution 78 6042
Fees and Charges for Various Municipal Services
T3a - Building Division Fees
Date of Last Adoption: 8-8-2023
Res. No: 23.6042.3
Current Fee
Adopted Changes
with effective dates
other than 7/1/23
Description
$2,000.01 to $25,000.00 Base Cost (for first $2,000) $117.55 Each additional $1,000 or fraction thereof $6.81
$25,000.01 to $50,000.00 Base Cost (for first $25,000) $274.18 Each additional $1,000 or fraction thereof $6.78
$50,000.01 to $100,000.00 Base Cost (for first $50,000) $443.68 Each additional $1,000 or fraction thereof $19.34
$100,000.01 to $500,000.00 Base Cost (for first $100,000) $1,410.68 Each additional $1,000 or fraction thereof $8.43
$500,000.01 to $1,000,000.00 Base Cost (for first $500,000) $4,782.68 Each additional $1,000 or fraction thereof $9.25
$1,000,000.01 and up Base Cost (for first $1,000,000) $9,407.68 Each additional $1,000 or fraction thereof $1.28
H. Additional Plan Review Fee (hourly) $215.00
I. Additional Inspection Fees
I.1. When work is started prior to obtaining a permit Double the prescribed inspection fees.

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Exhibit A. Resolution 78 6042
Fees and Charges for Various Municipal Services
T3a - Building Division Fees
Date of Last Adoption: 8-8-2023
Res. No: 23.6042.3
Current Fee
Adopted Changes
with effective dates
other than 7/1/23
Description
I.2. Re-inspection Fees (hourly) $173.00
I.3. Inspection Requests Outside Normal Business Hours (hourly - minimum 2 hours) $259.50 J. Expedited Plan Review (Using Outside Consultants) Actual Cost + Admin

K. Construction Valuation

Effective 9/8/23
L. Appeal to Board of Appeals Deposit $4,000
Fee (Actual staff time charged at hourly rates beginning 9/8/23) $115.00 Varies Plus Public Notice Fees At Cost
M. Storm Water Pollution Prevention Compliance
Additional time above minimum (per hour with half hour minimum) $140 C3 service fee for permits increasing impervious surface area (percent of valuation) 0.12% N. Special service microfilm research request (hourly) $121.00 P. Child Care Program (CMC 19.10.030) (PP 130)

0.50%
Q. Development Project Mitigation Fee for Fire Station No. 22 Mitigation fee $3,619.33
Plus Administrative fee $100.00
R. Recycling – Construction and Demolition Projects
R.1. Program Fee (CMC 8.20.420)

0.33%
Residential projects $4,950 maximum
Where fees are based upon construction valuation, the Building Official may apply minimum valuations based upon the latest publication of International Code Council’s Building Valuation Data and/or upon the Building Official's published valuations for different project types. Final total valuation shall be set by the Building Official, as provided for in the City's adoption of the California Building Code.

Non- restricted project fee due upon issuance of Certificate of Occupancy (percent of valuation) Percentage assessed to the permit value of "covered projects" as defined (CMC 8.20.380). This fee is non refundable.

Page 58 of 255 ends

R.2. Performance Security Fee (CMC 8.20.400)
For Permit Value $0
‑
$49,999 (percentage of value)

1.50%
For Permit Value $50,000 or more (percentage of value) 2.00% For Permit Value $0 - $9,999 ($275 minimum)
For Permit Value $10,000 and greater ($550 minimum; $25,000 maximum) S. Inclusionary Housing
S.1a In-lieu Fee per market-rate housing unit (project sizes 10 units or greater) 1, 2 Ownership, as of January 1, 2019 $10 per square foot $20 per gross square foot of market-rate
development
Rental $15 per gross square
foot of market-rate
development
S.1b Fractional In-Lieu Fee per market rate housing unit (project sizes 5-9 units) 1, 2 Ownership, as of July 1, 2018*
Rental
5 units $4 per square foot $254,838 x fractional
unit
6-7 units $6 per square foot $173,034 x fractional
unit
8-9 units $8 per square foot
2 These amounts are to be adjusted annually based on a construction cost index.

S.2 Rental Housing Impact Fee per market rate housing unit (projects of 10 units or greater) $0 S.3 Compliance Monitoring
Rental (annual) $38.00
Ownership (per change of ownership) $262.00
1 For sale vertical condo units shall be assessed the rental fees Percentage assessed to the permit value of "covered projects" as defined (CMC 8.20.380). This fee is refundable for compliant projects. *For projects not deemed complete by July 1, 2018. For those projects deemed complete prior to July 1, 2018, the previous fee of $5,043

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Exhibit A. Resolution 78 6042
Fees and Charges for Various Municipal Services
T3a - Building Division Fees
Date of Last Adoption: 8-8-2023
Res. No: 23.6042.3
Current Fee
Adopted Changes
with effective dates
other than 7/1/23
Description
T. Building Code Enforcement
T.1. Reinspection Fee (hourly) $173.00
T.1.1 Recording Notice of Substandard Conditions with County Recorders Office Fee $432.50
County Recorders Fee
T.1.2 Issuance of First Notice of Violation or Notice and Order to Comply Fee $346.00 T.1.3 Issuance of Subsequent Notices of Violation or Notice and Order to Comply Fee $173.00 T.2. Summary Abatement
Fee At Cost
Plus Administrative fee (percent of cost) 30%
T.3. Public Nuisance Administrative Fines [per Gov. Code Sections 53069.4, 25132(b), and 36900(b)] First issuance in 12 months $100.00
Second issuance in 12 months $200.00
Third and subsequent issuance in 12 months $500.00
T.4. Building and Safety Code Violations [Per Gov. Code Sections 53069.4, 25132(c), and 36900(c)] First issuance in 12 months 130.00
Second issuance in 12 months 700.00
Third and subsequent issuance in 12 months 1,300.00
Third and subsequent issuance in 24 months if commercial property with visible refuse or unauthorized use 2,500.00 U. Building Division Services
Processing (hourly)
$121.00
Plan Review (hourly) $215.00
Inspection (hourly) $173.00
V. California State Fees
V.1 CA Building Standards Fee (California HSC Sections 18930.5-18938.3) $4 per $100,000 of
valuation (Min $1)
For services rendered by City staff which have no fee listed in this section of the fee schedule, the City Manager or the City Manager's designee

Page 60 of 255 ends

Exhibit A. Resolution 78 6042
Fees and Charges for Various Municipal Services
T3a - Building Division Fees
Date of Last Adoption: 8-8-2023
Res. No: 23.6042.3
Current Fee
Adopted Changes
with effective dates
other than 7/1/23
Description
V.2a SMIP Fee (California PRC Sections 2700-2709.1) – Residential 1-3 stories except hotels and motels $13 per $100,000 of
valuation (Min $0.50)
$28 per $100,000 of
valuation (Min $0.50) V.2b SMIP Fee (California PRC Sections 2700-2709.1) – All other than (Residential 1-3 stories except hotels and motels)

Page 61 of 255 ends

Ord. No. 24-XX 1
ORDINANCE NO. 24-XX

AN ORDINANCE AMENDING CONCORD MUNICIPAL CODE, TITLE
18 (DEVELOPMENT CODE), TITLE 18 (DEVELOPMENT CODE)
SECTION 18.20 (GENERAL TERMS) AND ADDING CHAPTER 18.115 (AFFORDABLE HOUSING OVERLAY DISTRICT) AND SECTION

18.200.230 (LOT CONSOLIDATION INCENTIVE PROGRAM)
WHEREAS, Government Code Section 65800 et seq. provides for the amendment of any and all adopted City of Concord (“City”) zoning laws, ordinances, rules, and regulations; and WHEREAS, the State of California has declared housing as a matter of statewide importance; and
WHEREAS, to address the housing shortage, the State of California has enacted laws to accelerate housing production by, among other things, requiring local governments to streamline approvals for certain types of residential and mixed-use housing developments; and WHEREAS, the State of California has found that local governments have a responsibility to facilitate the development of housing for all economic segments of the community (Government Code Section 65580(d)); and
WHEREAS, state Housing Element Law (Government Code Section 65580 et. seq) requires that jurisdictions adopt a Housing Element for the eight-year period 2023-2031 to accommodate the City’s Regional Housing Needs Allocation (RHNA) of 5,073 units of new housing between 2023 and 2031, including 2,883 units affordable to very low-, low-, and moderate-income households; and WHEREAS, the City has not produced a sufficient number of affordable units to meet its RHNA in prior housing element cycles; and
WHEREAS, the shortage of affordable housing in the City has also led to insufficient supply of housing for the local workforce and student population, leading to overcrowding in some units, placing a cost burden on households, and long commutes as workers seek affordable housing in other communities; and
WHEREAS, the City finds that the housing supply shortage for persons of very low-, low-, and moderate-incomes is detrimental to the public health, safety and welfare and that it is a public Attachment 3

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Ord. No. 24-XX 2
purpose of the City, and a public policy of the State of California, to make an adequate supply of housing available for persons of all income groups; and WHEREAS, the City has adopted, and the California Department of Housing and Community Development has certified, a 2023-2031 Housing Element in compliance with state law that includes goals for providing a balanced supply of housing types, densities, and prices to meet the needs of all income groups residing or who wish to reside in Concord, and promoting the expansion of housing opportunities for all groups with special housing needs; and WHEREAS, the 2023–2031 Housing Element includes Program 6.1 to permit by-right development on sites previously identified in past housing elements in which at least 20% of the units are affordable to lower income households in accordance with Government Code Section 65583.2(c), and Program 13.2 to provide financial or regulatory incentives and a density bonus to encourage lot consolidation for residential development; and
WHEREAS, on November 29 and December 6, 2023, the City of Concord Housing and Economic Development Council Committee (“HED Committee”) met and provided feedback on policy questions proposed by staff related to developing a Lot Consolidation Incentive Program (Program

13.2); and
WHEREAS, Program 6.1 did not require feedback from the HED Committee because it is mandated by state law; and
WHEREAS, amendments are proposed to Concord Municipal Code, Title 18 (Development Code), Section 18.20 (General Terms), and adding Chapter 18.115 (Affordable Housing Overlay District) and Section 18.200.230 (Lot Consolidation Incentive Program) for consistency with state law and implementation of 2023-2031 Housing Element Programs 6.1 and 13.2; and WHEREAS, the Planning Commission, after giving all public notices required by state law and the Concord Municipal Code, held a duly noticed public hearing on December 20, 2023, on the proposed amendments, received the staff report and staff presentation, received comments from the public and interested parties, and after closing the public comments portion discussed the matter (the “Planning Commission Information”); and

Page 63 of 255 ends

Ord. No. 24-XX 3
WHEREAS, on December 20, 2023, the Planning Commission, after consideration of all pertinent plans, documents, testimony, and Planning Commission Hearing Information, recommended the City Council adopt and an Ordinance approving the Project; and WHEREAS, the City Council, after giving all public notices required by state law and the Municipal Code, held a duly noticed public hearing on January 23, 2024, to consider this Ordinance; and
WHEREAS, at such public hearing, the City Council considered all oral and written information, testimony, and comments and the public hearing, the oral report from City staff, the written report from City staff dated January 23, 2024, attached materials, exhibits presented, the Planning Commission Information, and all other information that constitutes the record of proceedings relating to the proposed Ordinance, which are maintained at the offices of the City of Concord City Clerk, 1950 Parkside Drive, Concord, CA (collectively, “City Council Information”).

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CONCORD DOES ORDAIN AS FOLLOWS:

Section 1. All of the facts set forth in the Recitals are true and correct and are hereby incorporated and adopted as findings of the City Council as if fully set forth herein.

Section 2. The City Council has reviewed, considered, and evaluated all of the Planning Commission Information, City Council Information, all other pertinent plans, documents, and testimony prior to acting upon Ordinance.

Section 3. The documents and other materials that constitute the record of proceedings upon which the City Council has based its decision are located in and may be obtained from the City of Concord Clerk’s Office, 1950 Parkside Drive, Concord, CA 94519.

Section 4. California Environmental Quality Act
The City Council finds that the proposed Municipal Code amendments are exempt from the California Environmental Quality Act (CEQA) pursuant to Public Resources Code 21065 and CEQA Guidelines Section 15060(c)(2) or 15378 in that they do not constitute a “project” as defined by CEQA since they do not have the potential to result in either a direct physical change to the

Page 64 of 255 ends

Ord. No. 24-XX 4
environment or a reasonably foreseeable indirect physical change to the environment.

If the Ordinance did constitute a “project” under CEQA, the Ordinance falls within the “common sense” exemption set forth in 14 Cal. Code Regs. Section 15061(b)(3), excluding project where “it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment…” Therefore, the proposed Municipal Code amendments do not warrant further environmental review. This determination reflects the City’s independent judgement and analysis.

Section 5. Development Code Amendment Findings
1) The proposed amendment is consistent with the general plan. The proposed amendments to the Concord Municipal Code, Title 18 (Development Code), consist of updates to the City’s existing General Terms (Chapter 18.20) and the addition of a new chapter (18.115) and a new section (18.200.230) in order to implement state law and the 2023–2031 Housing Element. The amendments are in conformance with the General Plan by streamlining and incentivizing housing development that provides the City with a balanced supply of housing types and prices, and in particular lower income housing, to meet the needs for all economic segments of the community. The proposed amendments are also internally consistent with all other provisions and elements of the General Plan. 2) The proposed amendment would not be detrimental to the public interest, health, safety, convenience, or welfare of the city. In response to California’s housing shortage, the State has adopted laws to accelerate housing production by removing or limiting the City’s discretionary review on housing developments. The proposed amendments would implement state law in addition to the 2023-2031 Housing Element. Incentivizing lot consolidation will help facilitate residential and mixed-use projects to help the City meet its RHNA targets and increase opportunities for housing in the City. The proposed amendments would not be detrimental to the public interest, health, safety, convenience, or welfare of the City. On the contrary, the proposed amendments will serve the City’s public interest by facilitating and streamlining the review of residential projects that will help

Page 65 of 255 ends

Ord. No. 24-XX 5
alleviate the City of Concord’s housing shortage, and in particular housing affordable to lower-income households.
3) Zoning map amendments shall also find that the affected site is physically suitable, including absence of physical constraints, access, compatibility with adjoining land uses, and provision of utilities, for the requested zoning designation and proposed or anticipated uses and/or development. This amendment implements state law by including a new Affordable Housing Overlay District that facilitates a by-right process for residential projects on sites identified for lower-income households within the Sites Inventory that had been previously identified in past Housing Elements. The Affordable Housing Zoning Overlay District does not change the underlying zoning district or land use; therefore, will not physically effect, change the land use compatibility of any the identified sites, or impact the provision of utilities. The Lot Consolidation Incentive Program (Program 13.2) does not include an amendment to the zoning map.

Section 6. The City Council does hereby pass and adopt this Ordinance No. 24-XX.

Section 7. Municipal Code, Title 18 (Development Code), Section 18.20.030 (Definitions) is hereby amended to add that definition set forth in Exhibit A to the existing language in Section 18.20.030, and Chapter 18.115 and Section 18.200.230 are hereby added as set forth in Exhibits B and C attached hereto and made a part hereof. //
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Page 66 of 255 ends

Ord. No. 24-XX 6
Section 8. This Ordinance No. 24-XX shall become effective thirty (30) days following its passage and adoption. In the event a summary of said Ordinance is published in lieu of the entire Ordinance, a certified copy of the full text of this Ordinance shall be posted in the office of the City Clerk at least five (5) days prior to its adoption and within fifteen (15) days after its adoption, including the vote of the Councilmembers. Additionally, a summary prepared by the City Attorney’s Office shall be published once at least five (5) days prior to the date of adoption of this Ordinance and once within fifteen (15) days after its passage and adoption, including the vote of the Councilmembers, in the East Bay Times, a newspaper of general circulation in the City of Concord.
____________________________________
Edi E. Birsan
Mayor
ATTEST:
______________________________________
Joelle Fockler, MMC
City Clerk

(Seal)
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Page 67 of 255 ends

Ord. No. 24-XX 7
Ordinance No. 24-XX was duly and regularly introduced at a regular meeting of the City Council of the City of Concord held on January 23, 2024, and was thereafter duly and regularly passed and adopted at a regular meeting of the City Council of the City of Concord on February 13, 2024, by the following vote:

Joelle Fockler, MMC
City Clerk
Attachments:

Exhibit A: CDC Section 18.20.030, Definitions
Exhibit B: CDC Chapter 18.115, Affordable Housing Overlay District Exhibit C: CDC Section 18.200.230, Lot Consolidation Incentive Program

Page 68 of 255 ends

Concord Municipal Code
Chapter 18.20 GENERAL TERMS

Page 1 ends

The Concord Municipal Code is current through Ordinance 23-8, passed October 3, 2023.

Exhibit A to Attachment 3
Chapter 18.20

GENERAL TERMS
Sections:

Article I. Use Classifications

18.20.010 Purpose and applicability.

18.20.020 Use classifications.

Article II. Definitions

18.20.030 Definitions.
“Housing element” means the housing element of the City’s general plan, as required pursuant to subdivision (c) of Government Code Section 65302.

Page 69 of 255 ends

Concord Municipal Code
Chapter 18.115 AFFORDABLE HOUSING OVERLAY DISTRICT Page 1/4 Exhibit B to Attachment 3
Chapter 18.115
Affordable Housing Overlay District
Sections:

18.115.010 Purpose

18.115.020 Definitions

18.115.030 Affordable housing overlay district created

18.115.040 Requirements

18.115.050 Application

18.115.060 Review authority

18.115.070 Relationship with State Density Bonus Law and other laws

18.115.080 Conflict between regulations

18.115.090 Neighborhood meeting

18.115.100 Repeal

18.115.010 Purpose
In accordance with California Government Code Section 65583.2(c), the purpose of the affordable housing overlay district (AH) is to provide an alternative review process for housing development projects on sites identified for lower-income households in the City’s 2023-2031 Housing Element that had been previously identified in housing elements, and in which at least 20 percent of the units are affordable to lower income households.

18.115.020 Definitions
“Housing development project” has the same meaning as defined in paragraph (2) of subdivision (h) of Section 65589.5.
“Lower income household” means a household that is either a very low-income or a low- income household as established under the latest state income limits for Contra Costa County by the Department of Housing and Community Development. “By-right development” shall mean that the city’s review of the housing development project does not require a conditional use permit, planned unit development permit, or other discretionary review or approval that would constitute a “project” for purposes of Division 13 (commencing with Section 21000) of the California Public Resources Code.

Any subdivision of sites shall be subject to the Subdivision Map Act, Title 17 of the CMC, and all provisions in Title 18 pertaining to minor and major subdivisions.

18.115.030 Affordable housing overlay district created
The following district is hereby created, which shall overlay any underlying zoning district or districts, as further illustrated in Figure 18.115.030(A):

Page 70 of 255 ends

Concord Municipal Code
Chapter 18.115 AFFORDABLE HOUSING OVERLAY DISTRICT Page 2/4 Figure 18.115.030(A) – Affordable Housing Overlay District

18.115.040 Requirements
All by-right development projects pursuant to this chapter must be entirely on a parcel or parcels as those parcels were constituted and identified at the time of adoption of the 2023-2031 Housing Element, which is reflected on the AH overlay district map, and shall comply with the following:

A. Provide at least 20 percent of the units as affordable to lower income households and provide a deed restriction ensuring affordability pursuant to section 18.185.090.

These units shall enter into an affordable housing agreement, pursuant to section

18.185.080.

B. Chapter 18.52 Concord Objective Design Standards (ODS). For housing development projects not in conformance with the City’s Objective Design Standards, they shall be subject to Design and Site Review pursuant to Chapter 18.415.

Page 71 of 255 ends

Concord Municipal Code
Chapter 18.115 AFFORDABLE HOUSING OVERLAY DISTRICT Page 3/4 C. Housing development projects requesting a major or minor subdivision are subject to the Subdivision Map Act, the applicable provisions of CMC Title 17 (Subdivisions), and application review pursuant to Table 18.400.020.

18.1 15.050 Application
A. Initial Meeting and Preliminary Application. Pursuant to CMC 18.402.020, the applicant shall schedule an initial meeting with staff prior to filing a permit application. A applicant may voluntarily submit a preliminary application for review, section

18.402.030(B).

B. Sub
mittal Requirements. Filed applications shall include the information identified in the checklist on file with the planning division, and all applicable fees in accordance with the currently adopted master fees and charges schedule.

If
an application for a density bonus, development incentive or concession, or other affordable housing program incentive, it shall be submitted and processed concurrently with any other application(s) required for the housing development project.

Final approval or disapproval of an application shall be made by the review authority.

C. Fol
lowing receipt of the application and in conformance with CMC 18.405 (Permit Application Filing and Processing), the City shall provide to an applicant a letter which identifies project issues of concern and the procedures for compliance with this chapter.

18.1 15.060 Review Authority
The planning division shall be the review authority for housing development projects pursuant to this chapter, except for the specific decision regarding an application for a minor or major subdivision map, which shall be decided by the review authority identified in CMC 18.400.020. The date of decision on a minor or major subdivision by the appropriate review authority under this chapter shall not be tied to the date of the hearing and action of that review authority, but shall instead be the date the planning division subsequently issues a decision on the application as a whole. Any appeal initiated on a decision including approvals of the planning division and another review authority shall be combined and heard by the next highest review authority identified under CMC 18.510.010 that did not participate in the decision.

18.1 15.070 Relationship with Density Bonus Law and other laws A. Eligibility for Density Bonus Law waivers, incentives and concessions, the City’s affordable housing incentive program and the Transit Station Overlay shall not be limited by the applicability of this section.

B. Subdivision Regulations. CMC Title 17 establishes regulations for the subdivision of land. Where conflict exists between the AH overlay district and the provisions of CMC Title 17, the provisions of CMC Title 17 shall govern.

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Concord Municipal Code
Chapter 18.115 AFFORDABLE HOUSING OVERLAY DISTRICT Page 4/4

18.115.080 Conflict between regulations
Notwithstanding the regulations set forth in this chapter, if any section of this chapter conflicts with Government Code Section 65915 or other applicable state law, state law shall supersede this chapter.

Wher
e a conflict occurs between the AH overlay district and any other section of the development code or any provision of the CMC, the review authority of this chapter will determine which regulation prevails.

18.1 15.090 Neighborhood meeting
Projects shall conduct a neighborhood meeting in conformance with CMC section

18.405.050(B), Neighborhood meetings.

18.1 15.100 Repeal
Pursuant to Government Code Section 65583.2(m), this section shall only be effective until December 31, 2028, and shall be repealed thereafter, unless extended by the state.

Page 73 of 255 ends

Concord Municipal Code
Chapter 18.200 STANDARDS FOR SPECIFIC USES Page 1/3
Exhibit C to Attachment 3
Chapter 18.200

STANDARDS FOR SPECIFIC USES
Sections:

18.200.010 Purpose.

18.200.020 Applicability.

18.200.030 Accessory structures.

18.200.040 Alcoholic beverage sales.

18.200.050 Child day care facilities.

18.200.060 Drive-through facilities.

18.200.070 Emergency and homeless shelters.

18.200.080 Entertainment uses.

18.200.090 Gas stations and car washes.

18.200.100 Home-based businesses.

18.200.110 Live/work or work/live units.

18.200.120 Manufactured homes.

18.200.130 Mechanical and electronic games.

18.200.140 Mixed-use projects.

18.200.150 Mobile home parks.

18.200.160 Outdoor sales and displays.

18.200.170 Recycling facilities.

18.200.180 Accessory dwelling units.

18.200.190 Sidewalk cafes and outdoor eating areas.

18.200.200 Temporary uses and structures.

18.200.210 Food vendor group sites.

18.200.220 Convenience stores.

18.200.230 Lot Consolidation Incentive Program

18.200.230 Lot consolidation incentive program
A. The following incentives and standards shall apply to residential or mixed-use projects at a site identified for lot consolidation (“Identified Sites”) in the Housing Element Sites Inventory. For the purposes of this section, a mixed-use project shall mean a project with at least two-thirds total square footage designed for residential use (including residential amenities) and that meets the minimum residential density required by the General Plan.

1. Priority or expedited processing for by-right projects from the time the application has been deemed complete by the planning division as set forth below:
a. For projects of 150 residential units or less, a decision shall be rendered by the City within 90 days.

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Concord Municipal Code
Chapter 18.200 STANDARDS FOR SPECIFIC USES Page 2/3
b. For projects of more than 150 residential units, a decision shall be rendered by the City within 180 days.

2. Pri
ority placement on public meeting agendas.

3. Assi
stance in marketing affordable units, deed restricted to lower income households.

4. A 3 p
ercent increase of the base density, with the minimum of one additional unit, which shall be calculated based on the lot size and zoning district designation of the Identified Site at the time the Housing Element was adopted. For projects subject to Density Bonus Law, this 3 percent will be additive after Density Bonus Law calculation is completed and not compounded with it.

5. For
projects not subject to Density Bonus Law or making use of parking reductions through any other state law, a 10 percent reduction in required onsite residential parking. This incentive is intended to apply solely to the Identified Site as constituted at the time the Housing Element was adopted. If a project site includes additional acreage (e.g. as a result of a lot line adjustment, merger, or incorporation of other parcels into the project), the additional area shall not be included in calculating the reduction. The reduction shall therefore be calculated for the project by dividing the lot size of the Identified Site at the time the Housing Element was adopted by the area of the project site, and then multiplying that percentage by 10 percent of the required onsite residential parking for the project.

6. For
project sites comprised entirely of Identified Sites at the time the Housing Element was adopted, the required residential parking may be made up of 50% compact parking spaces and provided in any configuration. For project sites comprised of 50% or more of Identified Sites at the time the Housing Element was adopted, the required residential parking may be made up of 35% compact parking spaces and provided in any configuration. Project sites comprised of less than 50% of Identified Sites at the time the Housing Element was adopted are not eligible for this incentive. This incentive shall not apply to any projects electing to reduce their required parking through the application of any state law. To determine eligibility under this subsection, the planning division shall divide the lot size of the Identified Site at the time the Housing Element was adopted by the area of the project site.

B. The Cit
y will grant the incentives in 18.200.230(A), unless, on the basis of substantial evidence, it makes either of the following written findings:

1. The pr
oject incentives would have a specific adverse impact, as defined in California Government Code Section 65589.5(d)(2), upon public health and safety or the physical environment or on any real property that is

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Concord Municipal Code
Chapter 18.200 STANDARDS FOR SPECIFIC USES Page 3/3
listed in the California Register of Historical Resources and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact without rendering the development unaffordable to low and moderate income households.

2. The pr
oject incentives would be contrary to state or federal law.

Page 76 of 255 ends

Res. No. 24-XX 1

BEFORE THE CITY COUNCIL OF THE CITY OF CONCORD

COUNTY OF CONTRA COSTA, STATE OF CALIFORNIA
Resolution adding a By-Right Approval Fee by
amending Exhibit A to Resolution No. 78-6042
establishing fees and charges for various municipal
services in the City of Concord
Resolution No. 24-XX
/
WHEREAS, the City Council adopted Resolution No. 78-6042 on October 9, 1978, establishing a master resolution within which various municipal fees and charges would be located; and
WHEREAS, on January 23, 2024, the City Council introduced Ordinance No. 24-XX (An Ordinance amending Concord Municipal Code, Title 18 (Development Code) Section 18.20.030 (Definitions) and adding Chapter 18.115 (Affordable Housing Overlay District) and Section

18.200.230 (Lot Consolidation Incentive Program) (“Ordinance”); and WHEREAS, the Ordinance establishes a by-right approval process for eligible housing projects on sites identified within the 2023-2031 Housing Element that provide a minimum of 20 percent of the units as affordable to lower income households to accommodate the City’s Regional Housing Needs Allocation (RHNA) targets; and
WHEREAS, amendments to Schedule D, Permit Center Fees, to Resolution No. 78-6042 are necessary to establish the appropriate By-Right Development fee; and WHEREAS, the City Council held a public hearing on January 23, 2024, at which time members of the public were afforded the opportunity to address the City Council regarding this matter; and
WHEREAS, upon the close of the public hearing, the City Council deliberated upon the oral report from City staff, the written report from City staff dated January 23, 2024, together with oral and written testimony and other relevant information received during the course of the public hearing (“Fee Information”); and
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Attachment 4

Page 77 of 255 ends

Res. No. 24-XX 2 WHEREAS, the City Council has determined that Schedule D, Permit Center Fees, in Exhibit A to Resolution No. 78-6042 shall be amended to include Housing Applications as indicated in Exhibit A of this Resolution.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CONCORD DOES RESOLVE AS FOLLOWS:

Section 3. The City Council has reviewed, considered, and evaluated all of the fee information prior to acting upon the fee revision.

Page 78 of 255 ends

Res. No. 24-XX 3 Section 4. The City Council does hereby amend the City of Concord Master Fee Schedule D, Permit Center Fees, in Exhibit A, Attachment 4to Resolution No. 78-6042 to adopt revisions set forth in Exhibit A hereto, effective thirty (30) days after the second reading of the Ordinance.

Section 5. The documents and other materials that constitute the record of proceedings upon which the City Council has based its decision are located in and may be obtained from the City of Concord City Clerk, 1950 Parkside Drive, Concord, CA 94519.

PASSED AND ADOPTED by the City Council of the City of Concord on January 23, 2024, by the following vote:

Joelle Fockler, MMC
City Clerk
APPROVED AS TO FORM:

Susanne Meyer Brown
City Attorney
Attachment:

Exhibit A: Redline of Schedule D, Permit Center Fees Page 79 of 255 Exhibit A to Attachment 1
Fees and Charges for Various Municipal Services
D. Permit Center Fees
Date of Last Adoption: 5‐16‐2023
Res. No: 23‐6042.1
Num Description (*) Fee Basis Plan Engr Bldg Tran Total Fee Deposit Date last updated
Current Fees

20.3.1 New Pool - Plan Review Fixed Fee 558.00 558.00 7/1/2021

20.4 Additional document review, including SWPPP's and Soils report

20.4.1 Geotechnical [B] Actual Hours n/a Actual Hours n/a 1,500.00

20.4.2 SWPPP [B] Actual Hours n/a Actual Hours n/a 1,500.00

20.4.3 Mylar Maps and Plans Security Deposit: $200/page OR Minimum: $500 (Plans) Security Deposit
$200/page, $500
minimum

20.5 Grading Permit Inspection
Note: The permit fee includes inspections made during the specified timeline only.

Up to 1,000 cubic yards: 30 days from date of permit
Over 1,000 up to 10,000 cubic yards: 60 days from date of permit Over 10,000 up to 100,000 cubic yards: 90 days from date of permit Over 100,000 cubic yards: 120 days from date of permit

20.5.1 Single lot in (a non-hillside) location up to 100 cubic yards Fixed Fee n/a 528.00 n/a 528.00 7/1/2021

20.5.2 Single lot in (a hillside) location up to 100 cubic yards Fixed Fee n/a 704.00 n/a 704.00 7/1/2021

20.5.3 101-1,000 cubic yards, for the first 100 cubic yards Fixed Fee (Increment) n/a 704.00 n/a Varies 7/1/2021

20.5.4 Plus for each additional 100 cubic yards or fraction thereof Fixed Fee (Increment) n/a 176.00 n/a Varies 7/1/2019

20.5.5 1,001-10,000 cubic yards, for the first 1,000 cubic yards Fixed Fee (Increment) n/a 2,288.00 n/a Varies 7/1/2021

20.5.6 Plus for each additional 1,000 cubic yards or fraction thereof Fixed Fee (Increment) n/a 352.00 n/a Varies 7/1/2021

20.5.7 10,001-100,000 cubic yards, for the first 10,000 cubic yards Fixed Fee (Increment) n/a 5,456.00 n/a Varies 7/1/2021

20.5.8 Plus for each additional 1,000 cubic yards or fraction thereof Fixed Fee (Increment) n/a 141.00 n/a Varies 7/1/2021

20.5.9 Over 100,000 cubic yards , for the first 100,000 cubic yards Fixed Fee (Increment) n/a 18,128.00 n/a Varies 7/1/2021

20.5.10 Plus for each additional 1,000 cubic yards or fraction thereof Fixed Fee (Increment) n/a 106.00 n/a Varies 7/1/2021

20.6 Special Grading Permit Inspection Fees:

20.6.1 New Pool - Inspection Fixed Fee 528.00 528.00 7/1/2021

20.6.2 Pool Demolition - Inspection Fixed Fee 528.00 528.00 7/1/2021

21. Hillside Protection

21.1 Minor - SFR - 1 lot [B] Actual Hours Actual Hours Actual Hours 3,500.00 7/1/2021

21.2 Major - Res - > 1 lot; Non-Res [B] Actual Hours Actual Hours n/a n/a Actual Hours 7,500.00 7/1/2019

21.3 Hillside Protection Extension Fixed Fee 880.00 n/a n/a 880.00 7/16/2023

21.4 Administrative Hillside Development Use Permit Actual Hours Actual Hours 1,500.00 7/1/2021

22. Historic Preservation

22.1 Certificate of Appropriateness - Minor Alterations [B] Actual Hours Actual Hours n/a n/a 1,500.00 7/1/2021

22.2 Amendment to Certification of Appropriateness Fixed Fee 880.00 880.00 7/16/2023

22.3 Designation/Termination of Landmark Designation [B] Actual Hours Actual Hours n/a n/a 3,000.00

22.4 Certificate of Appropriateness - Major Alterations Actual Hours Actual Hours 3,500.00 7/1/2021 23 Housing Applications

23.1 By-Right Development Actual Hours Actual Hours Actual Hours Actual Hours 10,000.00

23. 24 Improvements (Major)

23.1 24.1 Permit Processing, Administration & Other Fees

23.1.1 24.11 Pre-Engineering (For initial meeting) [B] Actual Hours & Fixed Fee 558.00 Actual Hours Varies 1,000.00 7/1/2021

23.1.2 24.1.2 Pre-Engineering Traffic Review [B] Actual Hours & Fixed Fee 558.00 Actual Hours Varies 1,000.00 7/1/2021

23.1.3 24.1.3 Application Processing Fixed Fee n/a 157.00 157.00 7/1/2020

23.1.4 24.1.4 Filing fee exclusive of processing and inspection fees Fixed Fee n/a 78.00 78.00 7/1/2019

23.2 24.2 Improvement Plan Review
Note: Includes initial submission and two revisions

23.2.1 24.2.1 Base Cost (Improvements cost ≤ $100,000, plus cost per $5K increment) Fixed Fee Actual Hours 279.00 n/a Actual Hours 279.00 7/1/2021

23.2.2 24.2.2 per each addtl $5,000 increment, or fraction thereof Fixed Fee (Increment) Actual Hours 279.00 n/a Varies 7/1/2021

23.2.3 24.2.3 Base Cost (improvement cost $100,001 - $500,000, plus cost per $10K increment) Fixed Fee (Increment) Actual Hours 5,859.00 n/a Varies 7/1/2021

23.2.4 24.2.4 per each addtl $10,000 increment more than $100,000, or fraction thereof Fixed Fee (Increment) Actual Hours 209.00 n/a Varies 7/1/2021

23.2.5 24.2.5 Base Cost (Improvement cost > $500,001, plus cost per $5K increment) Fixed Fee (Increment) Actual Hours 14,229.00 n/a Varies 7/1/2021

23.2.6 24.2.6 per each addtl $20,000 increment more than $500,000, or fraction thereof Fixed Fee (Increment) Actual Hours 140.00 n/a Varies 7/1/2021

23.2.7 24.2.7 Plan Re-Check [B] Actual Hours n/a Actual Hours n/a 1,500.00

23.3 24.3 Improvement Inspection
*Note: The permit fee includes inspections made during the specified timeline only.

23.3.1 24.3.1 Base Cost - Improvements ≤ $100,000, plus cost per $5K increment or less Fixed Fee n/a 528.00 n/a 528.00 7/1/2021 (30 days to complete - see note*)

23.3.2 per each addtl $5,000 increment, or fraction thereof Fixed Fee (Increment) n/a 352.00 n/a 352.00 7/1/2021

23.3.3 Base Cost - improvement cost $100,001 - $500,000, plus cost per $5K increment Fixed Fee n/a 7,392.00 n/a 7,392.00 7/1/2021 Exhibit A to Attachment 4

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Chapter 18.185

AFFORDABLE HOUSING
Sections:

18.185.010 Purpose.

18.185.020 Applicability.

18.185.030 Review authority.

18.185.040 Inclusionary housing requirements.

18.185.050 Density bonus program.

18.185.060 Affordable housing incentive program.

18.185.070 Affordable housing agreements.

18.185.080 Application requirements and review.

18.185.090 Duration of affordability.

18.185.100 Compliance monitoring fees.

18.185.010 Purpose.

A. The purpose of this chapter is to facilitate and encourage the development of housing affordable to a broad range of households with varying income levels within the city. It is intended to implement the city’s general plan housing element policies and programs pertaining to the need for housing affordable to persons of very low, low and moderate income. In addition, this chapter is intended to ensure that at least a minimum percentage of units affordable to very low, low, and/or moderate income individuals is included within new residential developments and that appropriate incentives are established to encourage the inclusion of affordable units beyond the stated minimum. This chapter is further intended to allow for density bonuses and related incentives consistent with state density bonus law.

B. Terms referenced in this section are defined in CDC 18.20.030 under the subheading “Affordable Housing Definitions.” [Ord. 12-4. DC 2012 § 122-576].

18.185.020 Applicability.

A. The provisions of this chapter apply to all development containing five or more residential units. More specific applicability provisions are noted below:

1. CDC

18.185.040 (Inclusionary housing requirements) requires the inclusion of a minimum percentage of The Concord Municipal Code is current through Ordinance 21-6, passed November 9, 2021.

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affordable housing units in all projects with five units or more. Its intent is to integrate affordable housing throughout areas of the city where housing is permitted. An option for payment of in-lieu fees is provided in the event that development of inclusionary units as part of the project is not feasible. The requirements of CDC

18.185.040 apply in all districts where residential uses are permitted.

2. CDC 18.185.050 (Density bonus program) allows increased housing densities with a corresponding increase in affordable housing units consistent with state of California density bonus requirements. It applies in all districts where residential uses are permitted.

3. CDC

18.185.060 (Affordable housing incentive program) includes additional incentives for projects incorporating affordable units and permits density bonuses above those provided under CDC 18.185.050, in accordance with the Concord housing element. CDC 18.185.060 is only applicable in specified districts where high density multifamily housing and residential mixed-use development is permitted. The provisions of CDC 18.185.060 are intended as an alternative to those in CDC 18.185.050 for qualifying projects, and are not cumulative. Projects using the density bonus provisions of CDC 18.185.060 are not eligible for additional bonuses under CDC 18.185.050.

B. Affordable housing units are units which are specifically designated for very low, low income, or moderate income households. They may be developed in all districts that allow residential uses. Affordable housing developments may consist of owner-occupied units or rental units.

C. The standards in this chapter are supplemental to, and supersede when in conflict with, the standards in the applicable districts in Division II of this title (Zoning Districts – Uses and Standards) and in other divisions of the development code, except that the provisions of Chapter 18.530 CDC (Nonconforming Uses, Structures, and Parcels) and Chapter 18.535 CDC (Nonconforming Physical Improvements/Property Upgrades) shall apply in all cases. [Ord. 12-4. DC 2012 § 122-577].

18.185.030 Review authority.

A. The community and economic development department shall be the review authority for new affordable housing developments. All applications for density bonuses, concessions, incentives, and waivers shall be reviewed by the community and economic development director.

B. Design and site development review, as described in Chapter 18.415 CDC, is required for all new affordable housing developments in all districts. This includes projects in which only a portion of the units are designated as affordable as well as those that are 100 percent affordable.

The Concord Municipal Code is current through Ordinance 21-6, passed November 9, 2021.

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D. The review authority for density bonuses and for the modifications to development standards identified in CDC 18.185.060 shall be the city of Concord community and economic development department. Staff may deny a density bonus by making certain findings as described in CDC 18.185.050(I)(2). Such denials are appealable to the city council. As indicated by Division VII of this title (Permits and Permit Procedures), planning commission and/or city council approval shall only be required where a use permit or major subdivision approval is required, where a decision is being appealed, or where actions related to financial incentives or agreements are included. [Ord. 12-4. DC 2012 § 122-578].

18.185.040 Inclusionary housing requirements.

A. Applicability. The following requirements shall apply to all residential projects of five or more units. No application for a general plan amendment, rezoning, tentative subdivision map, parcel map, use permit, design and site development review, hillside development plan, or building permit for a residential project shall be approved, nor shall any such residential project be constructed or occupied, without compliance with this chapter, except as noted in subsection (B) of this section (Exemptions).

1. All residential ownership projects shall either include the minimum number of inclusionary units required under subsection (C) of this section (Required Number of Inclusionary Units), or if eligible, pay the in-lieu fee determined pursuant to subsection (D) of this section (In-Lieu Fees).

2. Residential rental projects shall either include the minimum number of inclusionary units required under subsection (C) of this section (Required Number of Inclusionary Units), or if eligible, pay the in-lieu fee determined pursuant to subsection (D) of this section (In-Lieu Fees), only in the event that the project:
a. Receives a direct financial contribution from the city or any other form of assistance specified in Chapter 4.3 (commencing with Section 65915) of Division 1 of Title 7 of the Government Code; or b. Is subject to a development agreement.

3. An affordable housing agreement governing the number, size, and location of affordable units, and terms of their use, shall be required pursuant to CDC

18.185.070.

4. If affordable rental housing units are required, the city shall require as a condition of city assistance that the affordable housing agreement include the applicant’s agreement to any limitation on rents in consideration for the city assistance to ensure compliance with the Costa-Hawkins Act (Chapter 2.7 of Title 5 of Part 4 of Division 3 of the Civil Code).

B. Exemptions. This chapter shall not apply to the following:

1. A residential project consisting solely of the construction of one to four single-family dwelling units; or

2. The reconstruction of any dwelling units that were destroyed by a fire, flood, earthquake, or other act of The Concord Municipal Code is current through Ordinance 21-6, passed November 9, 2021.

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nature; or

3. Residential rental projects that are not either: (a) receiving a direct financial contribution or any other form of assistance specified in Chapter 4.3 (commencing with Section 65915) of Division 1 of Title 7 of the Government Code; or (b) subject to a development agreement.

C. Required Number of Inclusionary Units.

1. Basic Requirement. The required number of inclusionary units to be provided shall vary depending upon the total number of dwelling units in the project and the income category for the inclusionary units being provided. Within the parameters set forth in Table 18.185.040, the applicant may choose which income category of inclusionary units to provide.

Table 18.185.040
Required Percentage of Inclusionary Units
Project Size and Type Inclusionary Requirement
Residential Ownership Projects Either 10 percent at moderate income, or six percent at low income
Residential Rental Projects (not
otherwise exempt)
Either 10 percent at low income, or six
percent at very low income

2. Fractional Units. When the application of the percentages set forth above results in a number that includes a fractional unit, the fraction shall be rounded up to the next whole number if the fraction is one- half or more. If the result includes a fraction below one-half, the applicant shall have the option of either rounding up to the next whole number and providing an additional inclusionary unit, or paying an in-lieu fee as provided in subsection (D) of this section (In-Lieu Fees).

3. Blended Income Levels for Inclusionary Units. A developer may request that the development project include inclusionary units affordable to a mix of income levels (very low, low and moderate) instead of a single income level. Authority to approve a particular mix of income levels shall rest with the final city review authority for the underlying application.

5. Rental Alternative. As an alternative to providing ownership inclusionary units on site in residential The Concord Municipal Code is current through Ordinance 21-6, passed November 9, 2021.

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ownership projects as required by subsection (A) of this section, and pursuant to Government Code Section 65589.8, the applicant for a residential ownership project may provide rental inclusionary units. In such cases, the number of rental units provided shall be such that at least 10 percent of the total number of units in the project (including the ownership and rental units) are affordable to low income households or at least six percent of the total number of units in the project (including the ownership and rental units) are affordable to very low income households. To ensure compliance with the Costa-Hawkins Act (Civil Code Sections 1954.51 through 1954.535), the city may only approve such a proposal if the applicant agrees in a rent regulatory agreement with the city to limit rents in consideration for a direct financial contribution or other form of assistance specified in Chapter 4.3 (commencing with Section 65915) of Division 1 of Title 7 of the Government Code.

D. In-Lieu Fees.

1. Amount. A fee may be paid in lieu of providing inclusionary units for a residential project as provided in subsections (C)(2) (Fractional Units) and (4) (Projects of Five to Nine Units) of this section and for a residential project which contains less than 20 acres in gross land area. The fee shall be set by resolution of the city council and shall be an amount sufficient to pay the proportionate cost of providing inclusionary units elsewhere in the city. The fee may be periodically reviewed and updated by the city.

2. Use. All fee revenues shall be deposited in a restricted fund earmarked for housing developments affordable to very low, low, and/or moderate income households. Fees may also be used for administration of city affordable housing programs and to administer fair housing requirements for affordable units.

3. Timing of Payment. In-lieu fees shall be paid prior to issuance of a certificate of occupancy or prior to building permit issuance, for projects for which a certificate of occupancy is not issued; or as otherwise provided in the conditions of approval.

4. Purpose of In-Lieu Fees. Nothing in this title shall deem or be used to deem the in-lieu fee authorized in this section as an ad hoc exaction, as a mandated fee required as a condition to developing property, or as a fee subject to the analysis in Building Industry Association of Central California v. City of Patterson, 171 Cal.App.4th 886 (2009). Any in-lieu fee adopted by the city council is a menu option that may serve as an alternative to the provision of on-site inclusionary units as otherwise required by subsection (C) of this section.

5. The planning division or review authority may permit a developer to pay in-lieu fees rather than fulfilling the requirements of an executed inclusionary housing agreement requiring the construction of below market rate units if the reduced market price of the proposed units falls to within 15 percent of the “affordable price” for a moderate income four-person household.

E. Duration of Affordability. The duration of designated affordable inclusionary units shall conform to CDC The Concord Municipal Code is current through Ordinance 21-6, passed November 9, 2021.

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18.185.090.

F. Design Standards. The following design standards shall apply to all inclusionary units constructed pursuant to this chapter:

1. Inclusionary units shall be dispersed throughout the residential project and shall have access to all on- site amenities that are available to market rate units.

2. The construction quality and exterior design of inclusionary units shall be comparable to the market rate units. However, inclusionary units may be smaller in size, developed on smaller lots, and/or have alternative interior finishes.

3. The average number of bedrooms for all inclusionary units must be equivalent to the average number of bedrooms for market rate units within the same residential project.

G. Timing of Construction and Occupancy. All inclusionary units must be constructed and occupied prior to or concurrently with the market rate units within the same residential project. For phased residential projects, the inclusionary units may be constructed and occupied in proportion to the number of dwelling units in each phase of the project.

H. Development Incentives.

1. The city may grant one or more of the following affordable housing development incentives in order to mitigate the financial impact of this chapter’s requirements on a particular residential project:
a. Provision of housing set-aside funds, tax exempt financing, or other financial assistance, as approved by the city council.
b. A density bonus, incentive, concession, or waiver authorized pursuant to CDC

18.185.050 (Density
bonus program).
c. Modification of zoning or development standards as described in CDC

18.185.060 (Affordable
housing incentive program) for projects seeking a density bonus above and beyond the inclusionary housing requirements, as negotiated with and approved by the city. Authority to act on a request for these development incentives shall rest with the final review authority regarding the underlying application.
d. Expedited processing of a development application and/or deferral of development fees, as authorized by the city manager or designee. The terms and payment schedule for any deferred development fees shall be subject to the approval of the city manager or designee. Fees shall not be deferred any later than occupancy of the first dwelling unit in the residential project.

The Concord Municipal Code is current through Ordinance 21-6, passed November 9, 2021.

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2. No development incentive shall be provided by the city pursuant to this section unless the applicant enters into an affordable housing agreement consistent with CDC 18.185.070.

I. Off-Site Alternatives.

1. As a complete or partial alternative to the provision of on-site inclusionary units pursuant to this chapter, an applicant for a residential project may propose a plan for providing affordable housing units at an off-site location within the city of Concord, as follows:
a. Acquire existing unrestricted multifamily units located elsewhere within the city and rehabilitate those dwelling units. At least two rehabilitated dwelling units shall be provided for each inclusionary unit required pursuant to this chapter.
b. Construct new affordable residential dwelling units. At least two new dwelling units shall be provided for each inclusionary unit required pursuant to this chapter.

2. Any new or rehabilitated dwelling units shall be regulated pursuant to an affordable housing agreement, as applicable, between the developer and the city pursuant to CDC

18.185.070 (Affordable housing
agreements).

3. All off-site inclusionary units must be rehabilitated or constructed and occupied prior to or concurrently with the market rate units for the related residential project. For phased residential projects, the inclusionary units may be constructed and occupied in proportion to the number of dwelling units in each phase of the project.

4. The applicant may partner with a nonprofit affordable housing provider in order to meet its inclusionary housing obligations through one of the alternatives set forth in this section.

5. Authority to act on off-site alternative proposals shall rest with the final city review authority regarding the underlying application.

J. Waivers or Adjustments. The city council may approve a reduction or waiver of the requirements of this chapter for residential projects which: (1) are the subject of a disposition and development agreement, owner participation agreement, acquisition agreement, or other arrangement with the city of Concord; and (2) are receiving assistance from the city of Concord, such as relocation of occupants, acquisitions and disposition of land for site assemblage, use of eminent domain, write-down of land costs, fee waivers, or other forms of direct city assistance. The city may also adjust or waive the requirements of this chapter if the applicant demonstrates that its strict application would affect a taking of private property without just compensation or otherwise constitute a violation of the United States Constitution, California Constitution or other applicable federal or state laws. Any applicant requesting a reduction or waiver must submit a pro forma and such other financial analysis The Concord Municipal Code is current through Ordinance 21-6, passed November 9, 2021.

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sufficient to support a determination that the reduction or waiver is necessary to ensure the economic feasibility of the project. Consistent with its responsibilities under the Public Records Act, the city shall take reasonable steps to protect the confidentiality of any proprietary financial information submitted by the applicant.

K. Allocation Priority. In the event that there exists a greater number of qualified persons than the number of available inclusionary units for any residential project subject to this chapter, then first priority for allocating available inclusionary units shall be given to qualified purchasers or renters who live or work within the city of Concord. [Ord. 12-4. DC 2012 § 122-579].

18.185.050 Density bonus program.

A. Purpose. The purpose of this section is to provide density bonuses for the production of affordable housing and senior housing in accordance with Sections 65915 and 65917 of the California Government Code. A density bonus is an increase in the number of dwelling units authorized for a particular parcel of land. Bonuses range from five to 35 percent over the maximum residential density otherwise permitted, depending on the level of affordability, the percentage of units that are affordable, and the inclusion of child care facilities in the development project.

B. Relationship to Inclusionary Housing Requirements. All projects utilizing a density bonus shall also comply with CDC

18.185.040 for inclusionary housing. For the purposes of calculating the required number of affordable units required by CDC 18.185.040, the additional units which may be authorized by a density bonus under this section are not included.

C. Relationship to Transit Station Overlay Zone. The provisions of this section may be used in lieu of those specified in the transit station (TS) overlay zoning district, but may not be used in addition to those specified in the TS overlay. Because the TS overlay already offers density bonuses and other development incentives which may exceed those listed in this section, the bonus densities offered through this section and the TS overlay (Chapter 18.105 CDC) are separate and not cumulative. Projects in the TS overlay are eligible to use the affordable housing incentive program components in CDC

18.185.060, as noted in that section.

D. General Provisions.

1. State Law Governs. When conflict occurs between the provisions of this chapter and Government Code Section 65915, state law shall govern.

2. Land Use Compatibility. Affordable housing units in projects using density bonuses shall be built on site and dispersed within market-rate projects, whenever feasible. Density bonus units within market-rate projects shall be comparable with the design of market-rate units in building appearance, use of materials, and finished quality.

3. Availability. Density bonus units shall be constructed concurrently with, and made available for, qualified The Concord Municipal Code is current through Ordinance 21-6, passed November 9, 2021.

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occupants at the same time as the market-rate housing units within the same project unless both the city and the applicant agree to an alternative schedule for development.

4. Effect of Granting a Density Bonus. The granting of a density bonus shall not, in and of itself, require a general plan amendment, zoning change, or other discretionary approval.

5. Income Levels. For purposes of determining income levels of households under this chapter, the city shall use the Contra Costa County income limits in Title 25, Section 6932 of the California Code of Regulations.

6. Affordability Term. The duration of affordability shall comply with CDC 18.185.090.

7. Affordable Housing Agreement. Applicants requesting a density bonus shall enter into an affordable housing agreement with the city pursuant to CDC 18.185.070.

E. Density Bonus Requirements.

51.12 of the Civil Code or are located in a mobile home park that limits residency based on age requirements for housing for older persons pursuant to Section 798.76 or 799.5 of the Civil Code. d. At least 10 percent of the units in a common interest development as defined in California Civil Code Section 1351 are designated for moderate income households; provided, that all units in the development are offered to the public for purchase. For each one percent increment over 10 percent in the number of moderate income designated units, the amount of the density bonus as defined in Table

18.180.050(A) shall be increased by one percent, up to a maximum of 35 percent.

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Table 18.185.050(A)
Percentage of Affordable Units and Corresponding Density Bonus Very Low Income
Households Earning < 50
percent AMI
Low Income Households
Earning < 80 percent AMI
Moderate Income 120
percent AMI
Persons/Families in
Common Interest
Development
Percent
Units Set
Aside as
Very Low
Income
Units
Percentage
Density
Bonus
Percent
Units Set
Aside as
Low Income
Units
Percentage
Density
Bonus
Percent
Units Set
Aside as
Moderate
Income
Units
Percentage
Density
Bonus
5 percent 20.0 percent 10 percent 20.0 percent 10.0 percent 5.0 percent 6 percent 22.5 percent 11 percent 21.5 percent 11.0 percent 6.0 percent 7 percent 25.0 percent 12 percent 23.0 percent 12.0 percent 7.0 percent 8 percent 27.5 percent 13 percent 24.5 percent 13.0 percent 8.0 percent 9 percent 30.0 percent 14 percent 26.0 percent 14.0 percent 9.0 percent 10 percent 32.5 percent 15 percent 27.5 percent 15.0 percent 10.0 percent 11 percent 35.0 percent 16 percent 29.0 percent 16.0 percent 11.0 percent 17 percent 30.5 percent 17.0 percent 12.0 percent
18 percent 32.0 percent 18.0 percent 13.0 percent
19 percent 33.5 percent 19.0 percent 14.0 percent
20 percent 35.0 percent 20.0 percent 15.0 percent

21.0 percent 16.0 percent

22.0 percent 17.0 percent

23.0 percent 18.0 percent

24.0 percent 19.0 percent

25.0 percent 20.0 percent

26.0 percent 21.0 percent

27.0 percent 22.0 percent
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28.0 percent 23.0 percent

29.0 percent 24.0 percent

30.0 percent 25.0 percent

31.0 percent 26.0 percent

32.0 percent 27.0 percent

33.0 percent 28.0 percent

34.0 percent 29.0 percent

35.0 percent 30.0 percent

36.0 percent 31.0 percent

37.0 percent 32.0 percent

38.0 percent 33.0 percent

39.0 percent 34.0 percent

40.0 percent 35.0 percent

2. Calculating the Density Bonus. The density bonus shall be calculated as shown in Table 18.185.050(A).

The maximum number of units shall be equal to the percentage indicated applied to the maximum allowable density in the applicable zoning district. For senior housing projects, the density bonus shall be 20 percent of the number of senior housing units.

3. An applicant must state in its application which of the density bonuses above is being sought.

4. Density bonus applicants shall meet the minimum inclusionary housing requirements before being eligible for density bonuses.

5. Fractional Units. When calculating the number of permitted density bonus units, any fractions of units shall be rounded to the next highest number.

6. An applicant may elect to receive a density bonus that is less than the amount required by this section.

In such cases, no reduction will be allowed in the number of affordable units required.

7. As provided in CDC

18.185.060, projects meeting certain locational criteria may be eligible for a density bonus that is greater than the amount made available by this section. In such cases, the criteria in CDC

18.185.050 shall no longer be used and the criteria in CDC 18.185.060 shall apply.

F. Development Incentives and Concessions.

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1. In addition to the density bonus set forth in subsection (E) of this section, the city shall provide a concession or incentive for qualified projects, unless the city makes a finding that the concession or incentive is not necessary as provided in subsection (F)(6) of this section. The development incentive(s) granted shall contribute significantly to the economic feasibility of providing the affordable or senior units.

2. Applicants seeking a waiver or modification of development or zoning standards shall show that such waivers or modifications are necessary to make the housing development economically feasible in accordance with California Government Code Section 65915(f).

3. Number of Concession or Incentives. If an applicant proposes to provide at least one of the percentages of affordable units indicated in Table 18.185.050(B), one or more concessions or incentives shall be granted in order to facilitate achievement of the density bonus.

Table 18.185.050(B)
Incentive Schedule
Affordable Unit Set-Aside
Number of
Incentives*
Percent Units Set
Aside as Very Low
Income Units
Percent Units Set
Aside as Low
Income Units
Percent Units Set
Aside as Moderate
Income Units (in
Common Interest
Development)
5 percent 10 percent 10 percent 1
10 percent 20 percent 20 percent 2
15 percent or more 30 percent or more 30 percent or more 3 * As stipulated in CDC

18.185.060, development projects meeting specified criteria may be eligible for additional incentives. Such projects would not be subject to the requirements above.

4. Development Incentives Defined. For the purposes of this section, concession or incentive means any of the following:
a. Reduced minimum lot sizes and/or dimensions;
b. Reduced minimum setbacks;
c. Reduced minimum common and/or private outdoor open space; d. Increased maximum lot coverage;
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e. Increased maximum building height and/or stories;
f. Reduced on-site parking standards, including the number or size of spaces and garage requirements, such that no more than (i) one on-site space shall be required for each studio or one- bedroom unit; (ii) two on-site spaces shall be required for each two- or three-bedroom unit; (iii) two and one-half on-site spaces shall be required for each four-bedroom unit. For the purposes of this section, at the applicant’s request, on-site parking may be provided through tandem or uncovered spaces but not through on-street parking. Pursuant to Government Code Section 65915, guest parking is not required;
g. Reduced minimum building separation requirements;
h. Reduced street standards, including street widths;
i. Approval of mixed-use zoning if commercial, office, or other land uses will reduce the cost of the housing development and if the commercial, office, or other land uses are compatible with the housing development and the existing or planned development in the area; j. Reduced or deferred permit application fees;
k. Expedited or accelerated permitting process;
l. Direct financial aid in the form of a loan or grant to subsidize or provide low interest financing for on- or off-site improvements, or land or construction costs. m. Other regulatory incentives or concessions proposed by the developer or the city which result in identifiable cost reductions or avoidance.

5. The city may offer an equivalent financial incentive in lieu of granting a density bonus, a concession or incentive, or both. The value of the equivalent financial incentive shall equal at least the land cost per dwelling unit savings that would result from a density bonus and must contribute significantly to the economic feasibility of providing the affordable or senior units pursuant to this section.

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b. The development incentives or concessions would have a specific adverse impact, as defined in California Government Code Section 65589.5(d)(2), upon public health and safety or the physical environment or on any real property that is listed in the California Register of Historical Resources and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact without rendering the development unaffordable to low and moderate income households. c. The development incentives or concessions would be contrary to state or federal law.

G. Child Care Facility Density Bonus.

1. Additional Density Bonus. When an applicant proposes to construct a housing development that conforms to the requirements of the state density bonus law and includes a child care facility other than a family day care home that will be located on the premises of or adjacent to the project, the city shall grant either of the following:
a. A density bonus of additional residential space that is equal to or greater than the square footage of the child care facility; or
b. An additional concession or incentive that significantly contributes to the economic feasibility of the construction of the child care facility.

2. Additional Requirements. The city shall also require that:
a. The child care facility remains in operation for a period that is as long as, or longer than, the length of time during which the affordable housing units must remain affordable; and b. The percentage of children of very low, low or moderate income households who attend the child care facility shall be the same or greater than the percentage of dwelling units in the project that are required for households at each income level.

3. Exceptions. The city shall not be required to provide a density bonus or concession for a child care facility if it finds, based upon substantial evidence, that the community has adequate child care facilities.

H. Donation of Land. When an applicant for a tentative subdivision map, parcel map, or other residential development approval donates land to the city that meets all of the requirements of Government Code Section 65915(h), the applicant shall be entitled to a density bonus of at least 15 percent, up to a maximum of 35 percent, depending on the amount of land donated. This section shall not apply when the city requires a developer to donate land as a condition of development. The density bonus shall be in addition to any other density bonus awarded pursuant to this section; provided, that the maximum combined density bonus for any housing development utilizing this provision shall be no more than 35 percent.

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I. Waivers and Modifications of Development Standards.

1. In accordance with Government Code Section 65915(e), an applicant may propose a waiver or modification of development standards if the established standard(s) would physically preclude the construction of a project meeting the criteria of subsection (E) of this section (Density Bonus Requirements) at increased densities or with the development incentives permitted by this section. A proposal for the waiver or reduction of development standards pursuant to the subdivision shall neither reduce nor increase the number of development incentives to which the applicant is entitled pursuant to subsection (F) of this section (Development Incentives and Concessions).

2. Grounds for Denial. In accordance with Government Code Section 65915(e), the city may deny an applicant’s request to waive or modify the city’s development standards in any of the following circumstances:
a. The application does not conform to the requirements of this section or Government Code Section 65915 through 65918.
b. The applicant fails to demonstrate that the city’s development standards physically preclude the utilization of a density bonus on a specific site.
c. The waiver or reduction would have a specific, adverse impact, as defined in Government Code Section 65589.5(d)(2), upon health, safety, or the physical environment, and there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact. d. The waiver or reduction would have an adverse impact on any real property that is listed in the California Register of Historical Resources.
e. The waiver or reduction would be contrary to state or federal law.

J. Appeals. The denial of a request for a density bonus on the basis of the findings or exceptions listed in subsection (F)(6) of this section (Restrictions), subsection (G) of this section (Child Care Facility Density Bonus), or subsection (I)(2) of this section (Grounds for Denial) may be appealed to the city council. [Ord. 12-4.

DC 2012 § 122-580].

18.185.060 Affordable housing incentive program.

A. Purpose. The purpose of the affordable housing incentive program is to provide incentives above and beyond those offered by the density bonus program in CDC

18.185.050 (Density bonus program) in order to encourage the development of affordable and mixed income housing, consistent with the Concord housing element. The development standards listed in this section modify those established in other applicable divisions of the development code. The standards are intended to help Concord meet its fair share of the region’s affordable housing needs while improving and complementing the design of surrounding neighborhoods, protecting the use The Concord Municipal Code is current through Ordinance 21-6, passed November 9, 2021.

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housing needs while improving and complementing the design of surrounding neighborhoods, protecting the use and enjoyment of neighboring properties, and promoting economic and environmental sustainability.

B. Applicability.

3. Where parcels within these zones are also covered by an airport overlay designation, all requirements of Chapter 18.100 CDC (Airport Overlay District (A)) shall apply.

4. Projects utilizing the density bonus provisions in this section are not eligible for additional density bonuses pursuant to CDC

18.185.050. The intent of the affordable housing incentive program is to provide an alternative to the density bonus program, and the bonuses are not additive.

C. Eligibility. The provisions of this section shall apply to all projects in eligible zoning districts meeting the following criteria:

3. Development projects exceeding the affordability thresholds identified in subsection (C)(1) and (2) of this section are eligible for the provisions of this section.

4. A minimum parcel area of at least 10,000 square feet (prior to any subdivision associated with the proposed project) is required for a project to be eligible for the provisions of this section.

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Table 18.185.060(A)
Increased Density and Floor Area Ratio (FAR) Provisions for Qualifying Affordable Housing and Mixed Income Developments(1)
Zone
Maximum Base
Density (specified in
Division II of this
title)
Modified Density for
Qualifying Projects
Maximum
Base FAR
(specified in
Division II of
this title)
Modified
FAR for
Qualifying
Projects(2)
RM 1 unit per 1,360 SF
lot area (32 DU/AC)
1 unit per 970 SF lot
area (40 percent
bonus)

N/A N/A
RH 1 unit per 435 SF lot
area (100 DU/AC)
1 unit per 300 SF lot
area (45 percent
bonus)

N/A N/A
NC 1 unit per 1,815 SF
lot area (24 DU/AC)
1 unit per 1,300 SF
lot area (40 percent
bonus)

0.35 1.0
CO 1 unit per 1,360 SF
lot area (32 DU/AC)
1 unit per 970 SF lot
area (40 percent
bonus)

1.0 1.4
CMX 1 unit per 1,090 SF
lot area (40 DU/AC)
1 unit per 750 SF lot
area (45 percent
bonus)

1.0 1.5
DMX 1 unit per 435 SF lot
area (100 DU/AC)
1 unit per 300 SF lot
area (45 percent
bonus)

6.0 6.0
DP 1 unit per 435 SF lot
area (100 DU/AC)
1 unit per 300 SF lot
area (45 percent
bonus)

4.0 4.0
TS
overlay
Add 25 percent to
base densities above
Where 40 percent
bonus is indicated
above, replace with
50 percent. Where
Add 25
percent to
base FAR
above
Add 20
percent to
base FAR
above
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45 percent bonus is
indicated above,
replace with 55
percent.
(1) All densities are based on net developable area, excluding streets and unbuildable portions of the property. (2) FAR applies to mixed-use projects only. Projects that are 100 percent residential are not subject to an FAR requirement.

Table 18.185.060(B)
Modified Lot Area and Lot Dimension Standards for Qualifying Affordable Housing and Mixed Income Developments (*)
Zone
Base
Minimum
Lot Size
(as
specified in
Division II
of this
title)
Modified
Minimum
Lot Size
for
Qualifying
Projects
Base
Minimum
Lot Width
(as
specified in
Division II
of this title)
Modified
Minimum
Lot Width
for
Qualifying
Projects
Base
Minimum
Lot Depth
(as
specified in
Division II
of this title)
Modified
Minimum
Lot Depth
for
Qualifying
Projects
RM 1,920
(detached)
1,440
(attached)
1,800
(detached)
1,200
(attached)
24 feet
(detached)
18 feet
(attached)
22 feet
(detached)
16 feet
(attached)
80 feet
(detached)
60 feet
(attached)
70 feet
(detached)
50 feet
(attached)
RH 5,000 4,000 50 feet 40 feet 100 80 feet
NC 10,000 10,000 100 feet 100 feet 100 feet 100 feet
CO 10,000 5,000 100 feet 50 feet 100 feet 80 feet
CMX 10,000 5,000 100 feet 50 feet 100 feet 80 feet
DMX 10,000 5,000 100 feet
interior
110 feet
corner
50 feet
interior
60 feet
corner
100 feet 80 feet
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DP 5,000 4,000 50 feet
interior
60 feet
corner
40 feet
interior
50 feet
corner
100 feet 80 feet
TS
overlay

N/A N/A N/A N/A N/A N/A
(*) Lots smaller than the standards listed here may be created within a multifamily development that is subdivided into individual fee-simple units.

Table 18.185.060(C)
Modified Lot Coverage Standards for Qualifying Affordable Housing and Mixed Income Developments(*)
Zone
Base Maximum Lot Coverage (as
specified in Division II of this
title)
Modified Maximum Lot
Coverage for Qualifying Projects
RM 60 percent (detached)
80 percent (attached)
70 percent (detached)
85 percent (attached)
RH 75 percent 85 percent
(*) For RM and RH zones only. Development in NC, CMX, DP, and DMX is not subject to lot coverage standards. Lot coverage for RH is for the entire project site. Where an RH site is subdivided into small fee simple parcels (e.g., condominiums), there is no lot coverage limit for the individual units.

G. Height. Qualifying affordable and mixed income housing developments may utilize the height standards in Table 18.185.060(D), in lieu of the height standards in Division II of this title.

Table 18.185.060(D)
Modified Height Standards for Qualifying Affordable Housing and Mixed Income Developments
Zone
Base Maximum Height (as
specified in Division II of this
title)
Modified Maximum Height for
Qualifying Projects
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RM 4 stories/40 feet 45 feet
RH 6 stories/60 feet 75 feet
NC 40 feet 45 feet
CO 30 feet 45 feet
CMX 30 feet 45 feet
DMX 200 feet 200 feet
DP 70 feet 85 feet
TS overlay N/A Add 20 percent to figures above
H. Setbacks. Qualifying affordable and mixed income housing developments shall be eligible for a 20 percent reduction in the setback standards that are otherwise required for each zone under Division II of this title, except as noted in subsection (I) of this section (Transitional Requirements). In the DMX zone, a 50 percent reduction in the required front setback shall be permitted (five feet instead of 10 feet).

I. Transitional Requirements. Qualifying affordable and mixed income housing developments shall be subject to all transitional requirements established by CDC 18.150.180 (Transitional requirements), including height limits and setbacks on properties abutting lower density residential zones.

J. Open Space. Qualifying affordable and mixed income housing developments may utilize the open space standards in Table 18.185.060(E), in lieu of the open space standards in CDC 18.150.100.

Table 18.185.060(E)
Modified On-Site Open Space Requirements for Qualifying Affordable Housing and Mixed Income Developments
Zone
Base On-Site Open
Space Sq. Ft./Unit (As
Specified in Division II
of This Title)
Modified On-Site Open
Space/Unit for
Qualifying Projects
Modified On-Site Open
Space/Unit for
Qualifying Projects if
within 500 Feet of a
Public Park One Acre
or Larger
RM 200 SF/unit, 60 SF of
which must be private
(*)
175 SF/unit, 60 SF of
which must be private
150 SF/unit, 60 SF of
which must be private
RH 200 SF/unit, 60 SF of
which must be private
125 SF/unit, 50 SF of
which must be private
100 SF/unit, 40 SF of
which must be private
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NC 200 SF/unit, 60 SF of
which must be private
150 SF/unit (private
and/or common)
125 SF/unit (private
and/or common)
CO 200 SF/unit, 60 SF of
which must be private
150 SF/unit (private
and/or common)
125 SF/unit (private
and/or common)
CMX 200 SF/unit, 60 SF of
which must be private
150 SF/unit (private
and/or common)
125 SF/unit (private
and/or common)
DMX 200 SF/unit, 60 SF of
which must be private
100 SF/unit (private
and/or common)
75 SF/unit (private
and/or common)
DP 200 SF/unit, 60 SF of
which must be private
100 SF/unit (private
and/or common)
75 SF/unit (private
and/or common)
TS
overlay
No further reduction
beyond what is
specified above
No further reduction
beyond what is
specified above
No further reduction
beyond what is
specified above
(*) Higher standards apply in small lot subdivisions. See Chapter 18.155 CDC.

K. Parking.

1. Qualifying affordable and mixed income housing developments may utilize the parking standards in Table

18.185.060(F), in lieu of the parking requirements in Division IV of this title.

Table 18.185.060(F)
Modified Parking Standards for Qualifying Affordable Housing and Mixed Income Developments
Bedroom Count Base Parking
Standards
Modified Parking
Standards for
Qualifying
Affordable Housing
Developments
Modified Parking
Standards for
Qualifying
Affordable Housing
Developments within

0.5 Mile of BART
Studio 1 0.67 0.5
1 bedroom 1.5 1 0.75
2 bedroom 2 1.5 1
3+ bedroom 2.5 spaces, plus

0.5 space for each
additional bedroom

1.75 spaces plus

0.25 spaces for each
additional bedroom

1.25 spaces plus

0.25 spaces for each
additional bedroom
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above 3 above 3 above 3
Guest spaces 1 space for each
four units
None required None required
TS overlay Can reduce above
requirements by 25
percent
Can reduce above
requirements as
noted in the last
column of this table
N/A

2. As indicated in Chapter 18.160 CDC (Parking, Loading, and Access), the review authority may grant further reductions for senior and special needs housing based on quantified information provided by the applicant that documents the need for fewer spaces.

3. Other parking standards prescribed by Chapter 18.160 CDC (Parking, Loading, and Access) continue to apply, to the extent they do not conflict with the numeric requirements of this table.

5. Affordable housing developments in the DP and DMX zones which are within an established vehicle parking district may pay an in-lieu parking fee as prescribed by CDC 18.160.060(B) (In-Lieu Fees) rather than providing required parking on site or off site.

Table 18.185.060(G)
Adjustments to Allowed Uses and Permit Requirements for Qualifying Affordable Housing and Mixed Income Developments
Zone
Use Allowances and Permit
Requirements for Multifamily
Residential Use, as Specified in
Division II of This Title
Use Allowances and Permit
Requirements for Qualifying
Affordable Housing and Mixed
Income Projects(1)
RM Zoning Clearance Only Zoning Clearance Only
RH Zoning Clearance Only Zoning Clearance Only
NC Major Use Permit Major Use Permit
CO Major Use Permit Minor Use Permit
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CMX Zoning Clearance Only Zoning Clearance Only
DMX Major Use Permit Zoning Clearance Only
DP Major Use Permit Minor Use Permit
(1) Limitations on ground floor residential uses apply in the NC and DP zones, as noted in Division II of this title. Ground floor residential uses are not permitted in the NC zone and are not permitted on sites facing Todos Santos Plaza in the DP zone. At the discretion of the review authority, a project which meets the affordability criteria listed in this chapter located on a site of at least two acres in the NC zone may include ground floor residential uses, provided the ground floor street frontage is developed with commercial use and residential uses occupy less than 50 percent of the ground floor area.

M. Additional Incentives. Consistent with the density bonus provisions established by CDC

18.185.050,
affordable and mixed income housing developments are eligible for additional incentives, including expedited permit processing, reduced or deferred fees, and direct financial aid through housing assistance programs.

N. Neighborhood Meeting. Consistent with Chapter 18.405 CDC (Permit Application Filing and Processing), a neighborhood meeting shall be required following submittal of an application to the planning division for any project requesting affordable housing incentives that is located within a residential zoning district or within 300 feet of a low density residential (RR, RS, RL) zoning district, as measured from the edge of the parcel. Public notification for this meeting shall comply with the city’s notification requirements and procedures, including mailed or delivered notices to all properties within 500 feet of the subject parcel.

O. Duration of Affordability. The term of affordability for units approved under this program shall comply with CDC

18.185.090 (Duration of affordability). [Amended during 2014 recodification; Ord. 12-4. DC 2012 § 122-581].

18.185.070 Affordable housing agreements.

A. Any project subject to the inclusionary housing requirements of CDC 18.185.040 or utilizing the density bonus or development incentives of CDC 18.185.050 and 18.185.060 shall require the applicant to enter into an affordable housing agreement. The form and contents of the agreement shall be consistent with the provisions of Sections 65864 to 65869 of the California Government Code and shall be subject to review by the city attorney in consultation with the planning division. Affordable housing agreements shall be recorded against the property in order to ensure implementation of the requirements of this chapter.

B. The agreement shall include, but is not limited to, the following:

1. The total number of units approved for the development, including the number of affordable housing units;

2. The location, unit sizes (in square feet) and number of bedrooms of the affordable housing units;

3. A description of the household income groups to be accommodated by the project and a calculation of The Concord Municipal Code is current through Ordinance 21-6, passed November 9, 2021.

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the affordable rent or sales price;

4. The party responsible for certifying sales prices or annual rental rates, and the process that will be used for certification;

5. A schedule for the completion and occupancy of the affordable housing units;

6. Duration of affordability for the affordable housing units, including provisions for resale and deed restrictions on targeted housing units that are binding on property upon sale or transfer;

7. Provisions covering the expiration of the agreement, including notice prior to conversion to market-rate units and a right of first refusal for the city and/or the distribution of accrued equity for for-sale units;

8. A description of the remedies for breach of the agreement by either party.

C. Additional Agreement Provisions for For-Sale Housing. In the case of for-sale housing, the regulatory agreement shall provide the following conditions governing the initial resale and use of affordable units:

1. Affordable units shall, upon initial sale, be sold to eligible very low, lower, or moderate income households at an affordable sales price and housing cost, or to qualified households as defined by the development code.

2. The initial purchaser of each affordable unit shall execute an instrument or agreement approved by the city restricting the sale of the unit in accordance with this chapter during the affordability term. Such instrument or agreement shall be recorded against the parcel and shall contain such provisions as the city may require in order to ensure continued compliance with this chapter.

4. The maximum sales price permitted on resale of an affordable unit shall be the lower of: (a) fair market value or (b) the seller’s lawful purchase price, increased by the rate of increase of area median income during the seller’s ownership. The sales price may also be modified to account for capital improvements made by the seller, deferred maintenance, and the seller’s necessary costs of sale. The city shall enter into an equity sharing agreement in accordance with Government Code Section 65915(c) to address disposition of proceeds upon resale.

5. The city may suspend resale restrictions on for-sale units in the event they create an economic hardship for the owner due to periods of significant real estate market decline, based on the criteria defined in the city of Concord’s inclusionary housing program guidelines.

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6. The resale restrictions shall provide an option to the city to purchase any affordable owner-occupancy unit at the maximum price which could be charged to a purchaser household, at any time the owner proposes sale.

D. Additional Agreement Provisions for Rental Housing. In the case of rental housing development, the regulatory agreement shall provide for the following conditions governing the use of affordable units during the use restriction period:

1. The rules and procedures for qualifying tenants, establishing affordable rent rates, filling vacancies, and maintaining target units for qualified tenants;

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

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

4. A requirement to apply the same rental terms and conditions to the tenants of affordable units as are applied to other tenants, except as required to comply with this chapter (for example, rent levels) or with other applicable government subsidy programs. Discrimination against persons receiving housing assistance is prohibited. [Ord. 12-4. DC 2012 § 122-582].

18.185.080 Application requirements and review.

A. Submittal Requirements. An applicant/developer seeking a density bonus, development concession or incentive, and/or other affordable housing program incentive pursuant to CDC

18.185.050 or 18.185.060 shall
submit an application which complies with the submittal requirements set by Division VII of this title (Permits and Permit Procedures). If not already included in that submittal, the following additional information shall be required:

1. The total number of units in the project;

2. The number and affordability level of proposed affordable housing units or other units to be produced through density bonus provisions;

3. The zoning and general plan designations and assessor parcel number(s) of the project site;

4. A vicinity map and preliminary site plan, drawn to scale, including building footprints, driveway, and parking layout;
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5. If a concession or incentive is requested, the application shall describe each specific development concession or incentive sought, and why it is necessary to provide the affordable units;

6. If requesting a density bonus based on land donation in accordance with Government Code Section 65915(g), information sufficient to permit the city to determine that the proposed donation conforms with the requirements of Section 65915 and the Government Code;

7. If requesting a density bonus based on the provision of a child care facility in accordance with Government Code Section 65915(h), the application must:
a. Provide the location of the proposed child day care facility and the proposed operator; b. Agree to have contracted with a child day care facility operator for operation of the child day care facility before the first building permit is issued;
c. Agree that the child day care facility will be in operation when the first certificate of occupancy is issued; and
d. Agree to meet the requirements specified in CDC

18.185.050(G)(2).

B. An application for a density bonus, development incentive or concession, or other affordable housing program incentive, shall be processed concurrently with any other application(s) required for the development project.

Final approval or disapproval of an application shall be made by the review authority unless direct financial assistance is requested. If direct financial assistance is requested, the city council shall have the sole authority to make the final decision on the application.

C. Following receipt of the application and in a manner consistent with the Permit Streamlining Act and Chapter

18.405 CDC (Permit Application Filing and Processing), the city shall provide to an applicant or developer a letter which identifies project issues of concern and the procedures for compliance with this chapter. The planning division shall inform the applicant/developer that the requested concession(s) or incentive(s) shall be recommended for consideration with the proposed housing development, or that alternative or modified concession(s) or incentive(s) shall be recommended.

D. The review authority provisions established by CDC

18.185.030 (Review authority) and Division VII (Permits and Permit Procedures) of this title shall apply to all applications for a density bonus or affordable housing incentive or concession. [Ord. 12-4. DC 2012 § 122-583].

18.185.090 Duration of affordability.

The duration of affordability for units created through the inclusionary zoning, density bonus, or affordable housing incentive provisions of this chapter shall be as follows:

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A. The sale price for ownership units shall be restricted for a period of 45 years pursuant to an affordable housing agreement recorded against the property. Resale restrictions may be released on a case by case basis by the city manager or designee due to undue hardship or a severe downturn in the residential real estate market, based on criteria defined in the city of Concord’s inclusionary housing program guidelines.

B. The monthly rent for rental inclusionary units shall be restricted for a period of 55 years pursuant to an affordable housing agreement recorded against the property. [Ord. 12-4. DC 2012 § 122-584].

18.185.100 Compliance monitoring fees.

The city council by resolution may establish compliance monitoring fees to recover the city’s actual, reasonable costs incurred for ongoing implementation of this chapter. For ownership units, the fee shall be payable by the developer or future seller of the property at the time of each sale or transfer during the term of the applicable affordable housing agreement. For rental inclusionary units, the property owner shall pay an annual fee each year during the term of the applicable affordable housing agreement. [Ord. 12-4. DC 2012 § 122-585].

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Attachment 6
Concord Municipal Code
Red te
xt are deletions or additions
Deletions are using strikeout
Double underlined text has been moved from elsewhere in the document

Page 1 ends

18.20.030 Definitions.

Aff
ordable Housing Definitions.
“Additional incentive” means a benefit offered by the city to facilitate construction of eligible projects as defined by the provisions of CDC 18.185.050 (Density bonus program). Benefits may include, but are not limited to, priority processing, fee deferments and waivers, the modification of site development standards or development code requirements, or any other regulatory incentive which would result in identifiable cost avoidance or reductions that are offered in addition to a density bonus.
“Affordable hHousing aAgreement” means a legally binding agreement between a developer and the cCity to ensure that the requirements of CDC Chapter 18.185 CDC are satisfied. The agreement, among other things, shall establish: the number of target affordable units, their size, location, terms, conditions of affordability, and production schedule.
“Affordable ownership cost” means a sale price that results in a monthly housing cost (including mortgage principal and interest, property taxes, utilities, property insurance and homeowners’ association fees, if any) that does not exceed one-twelfth of 350 percent of the maximum annual income for a household of the applicable income level (very low, low or moderate income). “Low income Affordable ownership unit” means an ownership dwelling unit that is offered for purchase at an affordable ownership cost only to a moderate-, low-, or very low-income household. “Affordable rent” means monthly rent (including utility costs based on utility allowances determined annually by the Contra Costa hHousing aAuthority) that does not exceed one-twelfth of 30 percent of the maximum annual income for a household of the applicable income level (very low, low or moderate income).
“Low income Affordable rental unit” means a rental dwelling unit that is offered for rent at an affordable rent only to a moderate-, low-, or very low-income household. “Affordable unit” means a dwelling unit that has a sales price or rent restricted by CDC Chapter

18.185.
“Affordable sales price” means a sales price at which moderate-, low-, or very low-income households can qualify for the purchase of an targetaffordable unit, calculated on the basis of underwriting standards of mortgage financing available for development, with appropriate adjustments for household size.
“Area median income” means the median income for Contra Costa County, adjusted for household size, as established pursuant to California Code of Regulations, Title 25, Section 6932 (or its successor provision).

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The Concord Municipal Code is current through Ordinance 22-13, passed December 6, 2022. “Child care facility,” as used in Chapter 18.185 CDC, means a child care facility other than a family day care home, including but not limited to infant centers, preschools, extended day care facilities, and school age child care centers.
“Conveyance” or “convey” means any transfer, sale, lease, rent, or disposition of or act to transfer, sell, lease, rent, or dispose of any affordable unit and includes, but is not limited to, transfer or title or any interest therein by nonjudicial or judiciary foreclosure and sale; but does not include transfer by gift, devise, or inheritance to the unit owner’s spouse or issue, taking of title by surviving joint tenant, transfer of title to a spouse as part of divorce or dissolution proceedings, or acquisition of title or interest therein in conjunction with marriage.
“Density bonus” means an increase in the number of dwelling units authorized for a particular parcel of land of at least five percent over the otherwise above the maximum residential density as provided for in Density Bonus Law as incorporated into this code by CDC 18.185.050. The specific level of density bonus allowed varies based on the level and extent of affordability in the development, as directed by CDC 18.185.050. When determining the number of dwelling units that shall be affordable under inclusionary zoning requirements, the units authorized by the density bonus shall not be included in the calculation.
“Density Bonus Law” means Government Code Section 65915 et seq., as amended from time to time, and incorporated into this code by CDC 18.185.050. “Density bonus unit” means residential units granted pursuant to the provisions of Chapter 18.185 CDC which exceed the otherwise maximum residential density for the development site. “Economically feasible” means when a housing project can be built with a reasonable rate of return.

The housing developer’s financial ability to build the project shall not be a factor. “Equivalent financial incentive” means a monetary contribution, based on a land cost per dwelling unit value, equal to one of the following: (1) a density bonus and a concession or incentive; or (2) a density bonus, where a concession or incentive is not requested or is determined to be unnecessary. “For-sale project” means a residential project, or portion thereof, that includes the creation of one or more residential living units that may be sold individually, including a condominium, stock cooperative, community apartment, or attached or detached single-family home. “Household income” means the combined adjusted gross income for all adult persons living in a living unit.
“Household type” means type of household classified according to whether the occupants of the housing units are very low income, lower income, or senior citizens. “Housing cost” means the sum of actual or projected monthly payments for all of the following associated with for-saletarget affordable units: principal and interest on a mortgage loan, including any loan insurance fees, property taxes and assessments, fire and casualty insurance, property maintenance and repairs, homeowners’ association fees, and a reasonable allowance for utilities. “Inclusionary housing agreement” means a recorded agreement that has been reviewed and approved by the city attorney and community and economic development director delineating the specific requirements that a particular developer will meet to fulfill the city’s inclusionary housing requirements pursuant to this chapter.

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The Concord Municipal Code is current through Ordinance 22-13, passed December 6, 2022. “Inclusionary unit” means a dwelling an affordable unit that has a sales price or rent, which is restricted under the requirements of by Chapter 18.185 CDC. “Low-income household” means a household whose combined annual income does not exceed the qualifying limit of 80 percent of area median income, adjusted for household size, for “lower income households” established pursuant to Health and Safety Code Section 50079.5. For the purpose of the density bonus requirements established by CDC 18.185.050, low income households shall include only those households whose annual income does not exceed 60 percent of area median income, consistent with California Government Code Section 65915(c)(1). “Market-rate unit” means a dwelling unit that is not legally restricted in terms of price or rent. “Mixed income” means a project which includes a combination of affordable and market rate units.

At least 40 percent of the units in such a project must be affordable to very low-, low- or moderate-income households.
“Moderate-income household” means a household whose combined annual income does not exceed the qualifying limit of 120 percent of area median income, adjusted for household size, for “persons and families of low or moderate income” established pursuant to Health and Safety Code Section 50093.
“Moderate income ownership unit” means an ownership dwelling unit that is offered for purchase at an affordable ownership cost only to a moderate income household. “Moderate income rental unit” means a rental dwelling unit that is offered for rent at an affordable rent only to a moderate income household.
“Ownership project” means a development project containing single-family detached dwelling units or multifamily dwelling units (e.g., condominiums, townhouses or duets) that will be offered for sale, not for rent.
“Qualified households” means a household which meets the specified eligibility criteria for a particular type of affordable housing unit.

Qualifying Affordable Housing (or Mixed Income) Project. For the purposes of CDC 18.185.060 (Affordable housing incentive program), this includes:

Rehabilitate (Rehabilitated Unit). For affordable housing purposes, means rehabilitation, the value of which constitutes 25 percent of the after rehabilitation value of the dwelling, inclusive of the land value. an existing unit which is “rehabilitated” as an affordable housing must meet the “substantial rehabilitation” test established by the Internal Revenue Code and Treasury regulations to determine eligibility for rehabilitation tax credits.

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The Concord Municipal Code is current through Ordinance 22-13, passed December 6, 2022. “Rental project” means a development project containing single-family detached dwelling units or multifamily dwelling units (e.g., apartments, condominiums, townhouses, or duets) that will be offered for rent, not for sale.
“Residential development project” means any development project that includes the construction of one or more dwelling units, including exclusively residential and mixed-use projects. “Approval Review authority” means the individual, department, commission, or elected body authorized to make the final decision on an application pursuant to Chapter 18.150 CDC. “Senior citizen” means persons who are:

Housing consisting of at least 150 units in which 80 percent of the units have at least one person aged 55 or older and which provide special facilities and services designed for seniors. Eligibility for a density bonus or other incentive for senior citizen units must be in conformity with state and federal laws governing senior housing projects.
“Target unit” means a dwelling unit within a housing development which will be reserved for sale or rent to, and affordable to, very low, lower income, or senior citizen households. “Very low-income household” means a household whose combined annual income does not exceed the qualifying limit of 50 percent of area median income, adjusted for household size, for “very low-income households” established pursuant to Health and Safety Code Section 50105. “Very low income ownership unit” means an ownership dwelling unit that is offered for purchase at an affordable ownership cost only to a very low income household. “Very low income rental unit” means a rental dwelling that is offered for rent at an affordable rent only to a very low income household.

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Attachment 7
Concord Municipal Code
Chapter 18.185 AFFORDABLE HOUSING
Red text is deletions or additions
Deletions are using strikeout
Double underlined text has been moved from elsewhere in the document

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Chapter 18.185

AFFORDABLE HOUSING
Sections:

18.185.010 Purpose.

18.185.020 Applicability.

18.185.030 Review authority.

18.185.040 Inclusionary housing requirements.

18.185.050 Density bonus program.

18.185.060 A ffordable housing incentive program.

18.185.070 Affordable housing agreements.

18.185.080 Application requirements and review.

18.185.090 Duration of affordability.

18.185.100 Compliance monitoring fees.

18.185.010 Purpose.

A. The purpose of this chapter is to facilitate and encourage the development of housing affordable to a broad range of households with varying income levels within the cCity. It is intended to implement the cCity’s general plan housing element policies and programs pertaining to providing housing to all economic segments, with specific focus on addressing the need for housing affordable to persons of very low-, low-, and moderate-income households.

In addition, this chapter is intended to ensure that at least a minimum percentage of units affordable to very low -, low-, and/or moderate-income individualshouseholds is included within new residential developments and that appropriate incentives are established to encourage the inclusion of affordable units beyond the stated minimum.

This chapter is further intended to allow for density bonuses and related incentives consistent with state dD ensity bBonus lLaw.

B. Terms referenced in this section are defined in CD MC 18. 20.030 under the subheading “Affordable Housing Definitions.” [Ord. 12-4. DC 2012 § 122-576].

18.185.020 Applicability.

A. The provisions of this chapter apply to all residential development projectscontaining five or more residential units. More specific applicability provisions are noted below:

1. CDMC 18.185.040 (Inclusionary housing requirements) requires the inclusion of a minimum percentage of affordable housing units in all projects with five units or more units, with the exception of projects noted in CMC 18.185.040(B). Its intent is to integrate affordable housing throughout areas of the city where housing is permitted. Alternative measures for compliance with this section, including, but not limited to, the payment of in-lieu fees or providing off-site affordable units areAn option for payment of in-lieu fees is provided in the event that development of inclusionary units as part of the project is not feasible. The requirements of CDC

18.185.040 apply in all districts where residential uses are permitted.

2. CDMC 18.185.050 (Density bonus program) allows increased housing densities with a corresponding increase in affordable housing units consistent with state of California density bonus requirements. It applies in all districts where residential uses are permitted.

3. CDMC 18.185.060 (Affordable housing incentive program) includes additional incentives for projects incorporating affordable units and permits density bonuses above those provided under C DMC 18.185.050, in

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accordance with the Concord housing element. CDMC 18.185.060 is only applicable in specified districts where high density multifamily housing and residential mixed-use development is permitted. The provisions of CDMC 18.185.060 are intended as an alternative to those in CDMC 18.185.050 for qualifying projects, and are not cumulative. Projects using the density bonus provisions of CDMC 18.185.060 are not eligible for additional bonuses under CDMC 18.185.050.

B. Affordable housing units are units which are specifically designated for very low -, low-income-, or moderate-income households. They may be developed in all districts that allow residential uses. Affordable housing developments may consist of owner-occupied units or rental units.

C. The standards in this chapter are supplemental to, and supersede when in conflict with, the standards in the applicable districts in Division II of this title (Zoning Districts – Uses and Standards) and in other divisions of the development code, except that the provisions of CMC Chapter 18.530 CDC (Nonconforming Uses, Structures, and Parcels) and Chapter 18.535 CDC (Nonconforming Physical Improvements/Property Upgrades) shall apply in all cases. [Ord. 12-4. DC 2012 § 122-577].

18.185.030 Review authority.

A. The cCommunity and economic dDevelopment dDepartment shall be the review authority for new residential development projects containing affordable housing unitsdevelopments. All applications for density bonuses, concessions, incentives, and waivers shall be reviewed by the cCommunity and economic dDevelopment dDirector.

B. Design and site development review, as described in CMC Chapter 18.415 CDC, is required unless exempted under Section 18.405.030 for all new affordable housing developments in all districts. This includes projects in which only a portion of the units are designated as affordable as well as those that are 100 percent affordable.

D. The review authority for density bonuses and for the modifications to development standards identified in C DMC

18.185.060 shall be the cCity of Concord cCommunity and economic dDevelopment dDepartment. Staff The review authority may deny a density bonus by making certain those findings as described in CDC 18.185.050(I)(2) required by state Density Bonus Law. Such denials are appealable to the cCity cCouncil. As indicated by Division VII of this title (Permits and Permit Procedures), pPlanning cCommission and/or cCity cCouncil approval shall only be required where a use permit or major subdivision approval is required, where a decision is being appealed, or where actions related to financial incentives or agreements are included. [Ord. 12-4. DC 2012 § 122-578].

18.185.040 Inclusionary housing requirements.

A. Applicability. The following requirements shall apply to all residential development projects of five or more units. No application for a general plan amendment, rezoning, tentative subdivision map, parcel map, use permit, design and site development review, hillside development use permitplan, planned development use permit, or building permit for a new residential development project shall be approved, nor shall any such new residential development project be constructed or occupied, without compliance with this chapter, except as noted in subsection (B) of this section (Exemptions).

1. All residential ownership projects, including condominiums, and rental projects shall either include the minimum number of inclusionary units required under subsection (C) of this section (Required Number of Inclusionary Units), or provide an alternative means of compliance if eligible, pay the in-lieu fee determined pursuant to subsection (D) of this section (Alternative Means of Compliance)(In-Lieu Fees).

2. Residential rental projects shall either include the minimum number of inclusionary units required under subsection (C) of this section (Required Number of Inclusionary Units), or if eligible, pay the in- lieu fee determined pursuant to subsection (D) of this section (In-Lieu Fees), only in the event that the project:
a. Receives a direct financial contribution from the city or any other form of assistance specified in Chapter 4.3 (commencing with Section 65915) of Division 1 of Title 7 of the Government Code; or

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b. Is subject to a development agreement.

32. If inclusionary housing units are provided Aan aAffordable hHousing aAgreement governing the number, size, and location of affordable units, and terms of their use, shall be required pursuant to CDMC 18.185.070.

B. Exemptions. This chapter shall not apply to the following:

1. A residential project consisting solely of the construction of one to four single -family dwelling units; or

2. The reconstruction of any dwelling units that were destroyed by a fire, flood, earthquake, or other act of nature; or

3. A development project that is converting an existing office building that has been available for commercial uses for a minimum of five years to a residential use.Residential rental projects that are not either: (a) receiving a direct financial contribution or any other form of assistance specified in Chapter 4.3 (commencing with Section 65915) of Division 1 of Title 7 of the Government Code; or (b) subject to a development agreement.

C. Required Number of Inclusionary Units.

1. Basic Requirement. The affordability and required number of inclusionary units to be provided shall vary depending upon the total number of dwelling units in the project in accordance with and the income category for the inclusionary units being provided. Within the parameters set forth in Table 18.185.040, the applicant may choose which income category of inclusionary units to provide.

Table 18.185.040

Required Percentage of Inclusionary Units

Project Size and Type Inclusionary Requirement
Residential Ownership Projects 15% of the total number of ownership units within a residential development project shall be inclusionary units (7.5% of all units in the project shall be low-income units and 7.5% of all units in the project shall be moderate-income units). The first inclusionary unit shall be a moderate-income unit, the second shall be a low-income unit, and this pattern shall then repeat for all subsequent inclusionary units. Either 10 percent at moderate income, or six percent at low income Residential Rental Projects (not otherwise exempt) 6% of the total number of rental units in a residential development project shall be inclusionary units (1% of all units in the project shall be very low-, 1% of all units in the project shall be low-, and 4% of all units in the project shall be moderate-income units). The first inclusionary unit shall be a moderate-income unit, the second inclusionary unit shall be a low-income unit, the third unit shall be a moderate-income unit, the fourth unit shall be a very-low income unit, the fifth and six units shall be moderate-income units, and this pattern shall then repeat for all subsequent inclusionary units. Either 10 percent at low income, or six percent at very low income

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3. Fractional Units. When the application of the percentages set forth above (15% for residential ownership and 6% for residential rental) results in a number that includes a fractional unit, the fraction shall be rounded up to the next whole number if the fraction is one-half or more. If the result includes a fraction below one-half, the developerapplicant shall have the option of either rounding up to the next whole number and providing an additional inclusionary unit, or paying an in-lieu fee calculated by multiplying the fractional unit amount by the in-lieu fee set forth by that resolution per CMC 18.185.040(D)(1) as provided in subsection (D) of this section (In-Lieu Fees).

D. Alternative Means of Compliance.

As an alternative to providing the required number of inclusionary units on- site, a developer may select an alternative below to achieve compliance with this section.

1. In-Lieu Fees.
1a. Amount. A fee may be paid in lieu of providing inclusionary units for a residential project as provided in subsections (C)(2) (Fractional Units) and (4) (Projects of Five to Nine Units) of this section and for a residential project which contains less than 20 acres in gross land area. The fee shall be set by resolution of the cCity cCouncil and shall be an amount sufficient to pay the proportionate cost of providing inclusionary units elsewhere in the Ccity. The fee may be periodically reviewed and updated by the Ccity. 2b. Use. All fee revenues shall be deposited in a restricted fund dedicatedearmarked for the housing developments of housing affordable to very low-, low-, and/or moderate-income households. Fees may also be used for administration of cCity affordable housing programs and to administer fair housing requirements for affordable units.
3c. Timing of Payment. In-lieu fees shall be paid prior to issuance of a certificate of occupancy or prior to building permitissuance, for projects for which a certificate of occupancy is not issued; or as otherwise provided in the conditions of approval.
4d. Purpose of In-Lieu Fees. Nothing in this title shall deem or be used to deem the in-lieu fee authorized in this section as an ad hoc exaction, as a mandated fee required as a condition to developing property, or as a fee subject to the analysis in Building Industry Association of Central California v. City of Patterson, 171 Cal.App.4th 886 (2009). Any in-lieu fee adopted by the cCity cCouncil is an menu option that may serve as an alternative to the provision of on-site inclusionary units as otherwise required by subsection (C) of this section to ensure a more balanced housing supply for the general welfare of the public . The in-lieu fee may only be combined with providing inclusionary units onsite when it is in lieu of providing a fractional unit below one - half.

5. The planning division or review authority may permit a developer to pay in- lieu fees rather than fulfilling the requirements of an executed inclusionary housing agreement requiring the construction of below market rate units if the reduced market price of the proposed units falls to within 15 percent of the “affordable price” for a moderate income four-person household.

52. Rental Alternative. As an alternative to providing ownership inclusionary units on- site in residential ownership projects as required by CMC 18.185.040subsection (A) of this section, and pursuant to Government Code Section 65589.8, the applicant developer of for a residential ownership project may provide rental

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inclusionary units. In such cases, the number of rental inclusionary units provided shall be provided at the same percentage as required for residential rental projects, pursuant to Table 18.185.040such that at least 10 six percent of the total number of units in the project (including the ownership and rental units) are affordable to low income households or at least six percent of the total number of units in the project (including the ownership and rental units) are affordable to very low income households. To ensure compliance with the Costa-Hawkins Act (Civil Code Sections 1954.51 through 1954.535), the cCity may only approve such a proposal if the applicant developer agrees in an rent regulatoryAffordable Housing aAgreement with the cCity to limit rents in consideration for a direct financial contribution or other form of assistance specified in Density Bonus LawChapter 4.3 (commencing with Section 65915) of Division 1 of Title 7 of the Government Code .

3. Off-Site Alternatives.
1a. As an complete or partial alternative to the provision of on-site inclusionary units pursuant to this chapter, an developerapplicant for a residential project may propose a plan for providing affordable housing units at an off-site location within the Ccity of Concord, as follows:
ai. Acquire existing unrestricted multifamily units located elsewhere within the Cc ity and substantially rehabilitate those dwelling units. At least two rehabilitated dwelling units shall be provided for each inclusionary unit required pursuant to this chapter.
bii. Construct new affordable residential dwelling units. At least two new dwelling units shall be provided for each inclusionary unit required pursuant to this chapter. 2b. Any new or rehabilitated dwelling units shall be regulated pursuant to an aAffordable hHousing aAgreement, as applicable, between the developer and the Ccity pursuant to CDMC 18.185.070 (Affordable housing agreements).
3c. All off-site inclusionary units must be rehabilitated or constructed and occupied prior to or concurrently with the market-rate units for the related residential project. For phased residential projects, the required number of inclusionary units at each affordability level per phase shallmay be constructed and occupied in proportion to the total number of dwelling units in each phase of the project.

4. The developerapplicant may partner with a nonprofit affordable housing provider in order to meet its inclusionary housing obligations through one of the alternatives set forth in this sub section.

5. Authority to act on off-site alternative proposals shall rest with the final city review authority regarding the underlying application.

E. Duration of Affordability. The duration of designated affordable inclusionary units shall conform to CDC

18.185.090.

EF. Design Standards. The following design standards shall apply to all inclusionary units constructed pursuant to this chapter:

1. Inclusionary units shall be dispersed throughout the residential project and shall have access to all on- site amenities that are available to market rate units.

2. The construction quality and exterior design of inclusionary units shall be the same ascomparable to the market-rate units by including the same exterior materials, roof forms and pitches, window treatments, and landscaping. However, inclusionary units may be smaller in unit and lot size by 15% of the average square footage of the market-rate units and lot, developed on smaller lots, and/or have alternative interior finishes.

FG. Timing of Construction and Occupancy. All inclusionary units must be constructed and occupied prior to or concurrently with the market-rate units within the same residential development project. For phased residential

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development projects, the required number of inclusionary units at each affordability level per phase shallmay be constructed and occupied in proportion to the total number of dwelling units in each phase of the project.

GH. Development Incentives.

1. The cCity may grant one or more of the following affordable housing development incentives in order to mitigate the financial impact of this chapter’s requirements on a particular residential project:
a. Provision of housing set-aside funds, tax exempt financing, or other financial assistance, as approved by the cCity cCouncil.
b. A density bonus, incentive, concession, and/or waiver authorized pursuant to CDC 18.185.050 (Density bBonus Lawprogram).
c. Modification of zoning or development standards as described in CDMC 18.185.060 (Affordable housing incentive program) for projects seeking a density bonus above and beyond the inclusionary housing requirements, as negotiated with and approved by the cCity. Authority to act on a request for these development incentives shall rest with the final review authority regarding the underlying application.
d. Expedited processing of a development application and/or deferral of development fees, as authorized by the Ccity Mmanager or designee. The terms and payment schedule for any deferred development fees shall be subject to the approval of the cCity mManager or designee and shall be incorporated into an Affordable Housing Agreement. Fees shall not be deferred any later than occupancy of the first dwelling unit in the residential project.

2. No development incentive shall be provided by the Ccity pursuant to this section unless the developerapplicant enters into an aAffordable hHousing aAgreement consistent with CDMC 18.185.070.

IJ. Waivers or Adjustments. The Ccity Ccouncil may approve a reduction or waiver of the requirements of this chapter for residential projects which: (1) are the subject of a disposition and development agreement, owner participation agreement, acquisition agreement, or other arrangement with the Cc ity of Concord; and (2) are receiving assistance from the Ccity of Concord, such as relocation of occupants, acquisitions and disposition of land for site assemblage, use of eminent domain, write-down of land costs, fee waivers, or other forms of direct Ccity assistance. The Ccity may also adjust or waive the requirements of this chapter if the developer applicant demonstrates that its strict application would affect a taking of private property without just compensation or otherwise constitute a violation of the United States Constitution, California Constitution or other applicable federal or state laws. Any developerapplicant requesting a reduction or waiver must submit a pro forma and such other financial analysis sufficient to support a determination that the reduction or waiver is necessary to ensure the economic feasibility of the project. Consistent with its responsibilities under the Public Records Act, the Cc ity shall take reasonable steps to protect the confidentiality of any proprietary financial information submitted by the developerapplicant.

JK. Allocation Priority. In the event that there exists a greater number of qualified persons than the number of available inclusionary units for any residential project subject to this chapter, then first priority for allocating available inclusionary units shall be given to qualified purchasers or renters who live or work within the Cc ity of Concord. [Ord. 12-4. DC 2012 § 122-579].

18.185.050 Density bonus program.

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B. Applicability. The City may grant a density bonus for projects meeting the requirements of Density Bonus Law .

C. Review Procedure.

1. The developer shall submit to the Community Development Department all materials as required by the checklist.

3. The review authority shall grant the incentives and concessions unless written findings can be made, based on substantial evidence, as specified in Density Bonus Law.

The purpose of this section is to provide density bonuses for the production of affordable housing and senior housing in accordance with Sections 65915 and 65917 of the California Government Code. A density bonus is an increase in the number of dwelling units authorized for a particular parcel of land. Bonuses range from five to 35 percent over the maximum residential density otherwise permitted, depending on the level of affordability, the percentage of units that are affordable, and the inclusion of child care facilities in the development project.

B. Relationship to Inclusionary Housing Requirements. All projects utilizing a density bonus shall also comply with CDC 18.185.040 for inclusionary housing. For the purposes of calculating the required number of affordable units required by CDC 18.185.040, the additional units which may be authorized by a density bonus under this section are not included.

18.105 CDC) are separate and not cumulative. Projects in the TS overlay are eligible to use the affordable housing incentive program components in CDC 18.185.060, as noted in that section.

D. General Provisions.

1. State Law Governs. When conflict occurs between the provisions of this chapter and Government Code Section 65915, state law shall govern.

3. Availability. Density bonus units shall be constructed concurrently with, and made available for, qualified occupants at the same time as the market-rate housing units within the same project unless both the city and the applicant agree to an alternative schedule for development.

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4. Effect of Granting a Density Bonus. The granting of a density bonus shall not, in and of itself, require a general plan amendment, zoning change, or other discretionary approval.

6. Affordability Term. The duration of affordability shall comply with CDC 18.185.090.

7. Affordable Housing Agreement. Applicants requesting a density bonus shall enter into an affordable housing agreement with the city pursuant to CDC 18.185.070.

E. Density Bonus Requirements.

1. Minimum Density Bonus and Composition of Qualifying Projects. The provisions of this section apply to the construction of five or more housing units that satisfy at least one of the following criteria:
a. At least 10 percent of the units are designated as affordable to low income households. For each one percent increment over 10 percent in the number of low income designated units, the amount of the density bonus as defined in Table 18.185.050(A) shall be increased by one and one -half percent, up to a maximum of 35 percent.
b. At least five percent of the units are designated as affordable to very low income households. For each one percent increment over five percent in the number of very low income designated units, the amount of the density bonus as defined in Table 18.185.050(A) shall be increased by two and one -half percent, up to a maximum of 35 percent.
c. One hundred percent of the units are designated for senior citizens as defined in Section 51.3 and 51.12 of the Civil Code or are located in a mobile home park that limits residency based on age requirements for housing for older persons pursuant to Section 798.76 or 799.5 of the Civil Code. d. At least 10 percent of the units in a common interest development as defined in California Civil Code Section 1351 are designated for moderate income households; provided, that all units in the development are offered to the public for purchase. For each one percent increment over 10 percent in the number of moderate income designated units, the amount of the density bonus as defined in Table 18.180.050(A) shall be increased by one percent, up to a maximum of 35 percent.

Table 18.185.050(A)

Percentage of Affordable Units and Corresponding Density Bonus

Very Low Income Households Earning < 50
percent AMI
Low Income Households Earning < 80
percent AMI
Moderate Income 120 percent AMI
Persons/Families in Common Interest
Development
Percent Units Set
Aside as Very Low
Income Units
Percentage Density
Bonus
Percent Units Set
Aside as Low Income
Units
Percentage Density
Bonus
Percent Units Set
Aside as Moderate
Income Units
Percentage Density
Bonus
5 percent 20.0 percent 10 percent 20.0 percent 10.0 percent 5.0 percent 6 percent 22.5 percent 11 percent 21.5 percent 11.0 percent 6.0 percent 7 percent 25.0 percent 12 percent 23.0 percent 12.0 percent 7.0 percent 8 percent 27.5 percent 13 percent 24.5 percent 13.0 percent 8.0 percent 9 percent 30.0 percent 14 percent 26.0 percent 14.0 percent 9.0 percent

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Very Low Income Households Earning < 50
percent AMI
Low Income Households Earning < 80
percent AMI
Moderate Income 120 percent AMI
Persons/Families in Common Interest
Development
Percent Units Set
Aside as Very Low
Income Units
Percentage Density
Bonus
Percent Units Set
Aside as Low Income
Units
Percentage Density
Bonus
Percent Units Set
Aside as Moderate
Income Units
Percentage Density
Bonus
10 percent 32.5 percent 15 percent 27.5 percent 15.0 percent 10.0 percent 11 percent 35.0 percent 16 percent 29.0 percent 16.0 percent 11.0 percent 17 percent 30.5 percent 17.0 percent 12.0 percent
18 percent 32.0 percent 18.0 percent 13.0 percent
19 percent 33.5 percent 19.0 percent 14.0 percent
20 percent 35.0 percent 20.0 percent 15.0 percent

21.0 percent 16.0 percent

22.0 percent 17.0 percent

23.0 percent 18.0 percent

24.0 percent 19.0 percent

25.0 percent 20.0 percent

26.0 percent 21.0 percent

27.0 percent 22.0 percent

28.0 percent 23.0 percent

29.0 percent 24.0 percent

30.0 percent 25.0 percent

31.0 percent 26.0 percent

32.0 percent 27.0 percent

33.0 percent 28.0 percent

34.0 percent 29.0 percent

35.0 percent 30.0 percent

36.0 percent 31.0 percent

37.0 percent 32.0 percent

38.0 percent 33.0 percent

39.0 percent 34.0 percent

40.0 percent 35.0 percent

2. Calculating the Density Bonus. The density bonus shall be calculated as shown in Table 18.185.050(A). The maximum number of units shall be equal to the percentage indicated applied to the maximum allowable density in the applicable zoning district. For senior housing projects, the density bonus shall be 20 percent of the number of senior housing units.

3. An applicant must state in its application which of the density bonuses above is being sought.

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4. Density bonus applicants shall meet the minimum inclusionary housing requirements before being eligible for density bonuses.

5. Fractional Units. When calculating the number of permitted density bonus units, any fractions of units shall be rounded to the next highest number.

6. An applicant may elect to receive a density bonus that is less than the amount required by this section. In such cases, no reduction will be allowed in the number of affordable units required.

7. As provided in CDC 18.185.060, projects meeting certain locational criteria may be eligible for a density bonus that is greater than the amount made available by this section. In such cases, the criteria in CDC

18.185.050 shall no longer be used and the criteria in CDC 18.185.060 shall apply.

F. Development Incentives and Concessions.

Table 18.185.050(B)

Incentive Schedule

Affordable Unit Set-Aside
Number of
Incentives* Percent Units Set Aside as Very Low
Income Units
Percent Units Set Aside as Low
Income Units
Percent Units Set Aside as Moderate
Income Units (in Common Interest
Development)
5 percent 10 percent 10 percent 1
10 percent 20 percent 20 percent 2
15 percent or more 30 percent or more 30 percent or more 3

* As stipulated in CDC 18.185.060, development projects meeting specified criteria may be eligible for additional incentiv es. Such projects would not be subject to the requirements above.

4. Development Incentives Defined. For the purposes of this section, concession or incentive means any of the following:
a. Reduced minimum lot sizes and/or dimensions;
b. Reduced minimum setbacks;
c. Reduced minimum common and/or private outdoor open space; d. Increased maximum lot coverage;
e. Increased maximum building height and/or stories;

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f. Reduced on-site parking standards, including the number or size of spaces and garage requirements, such that no more than (i) one on-site space shall be required for each studio or one-bedroom unit; (ii) two on-site spaces shall be required for each two- or three-bedroom unit; (iii) two and one-half on-site spaces shall be required for each four-bedroom unit. For the purposes of this section, at the applicant’s request, on-site parking may be provided through tandem or uncovered spaces but not through on- street parking.

Pursuant to Government Code Section 65915, guest parking is not required; g. Reduced minimum building separation requirements;
h. Reduced street standards, including street widths;
i. Approval of mixed-use zoning if commercial, office, or other land uses will reduce the cost of the housing development and if the commercial, office, or other land uses are compatible with the housing development and the existing or planned development in the area; j. Reduced or deferred permit application fees;
k. Expedited or accelerated permitting process;
l. Direct financial aid in the form of a loan or grant to subsidize or provide low interest financing for on- or off-site improvements, or land or construction costs.
m. Other regulatory incentives or concessions proposed by the developer or the city which result in identifiable cost reductions or avoidance.

6. Restrictions. The city will grant the number of development incentives or concessions as required by this subsection, unless, on the basis of substantial evidence, it makes any of the following written findings below:
a. The development incentives or concessions are not required in order to provide affordable housing, as defined in Section 50052.5 of the Health and Safety Code, or for rents for the targeted units to be set as specified in Section 65915(c) of the California Government Code. b. The development incentives or concessions would have a specific adverse impact, as defined in California Government Code Section 65589.5(d)(2), upon public health and safety or the physical environment or on any real property that is listed in the California Register of Historical Resources and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact without rendering the development unaffordable to low and moderate income households. c. The development incentives or concessions would be contrary to state or federal law.

G. Child Care Facility Density Bonus.

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I. Waivers and Modifications of Development Standards.

2. Grounds for Denial. In accordance with Government Code Section 65915(e), the city may deny an applicant’s request to waive or modify the city’s development standards in any of the following circumstances:
a. The application does not conform to the requirements of this section or Government Code Section 65915 through 65918.
b. The applicant fails to demonstrate that the city’s development standards physically preclude the utilization of a density bonus on a specific site.
c. The waiver or reduction would have a specific, adverse impact, as defined in Government Code S ection 65589.5(d)(2), upon health, safety, or the physical environment, and there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact. d. The waiver or reduction would have an adverse impact on any real property that is listed in the California Register of Historical Resources.
e. The waiver or reduction would be contrary to state or federal law.

18.185.060 Affordable housing incentive program.

A. Purpose. The purpose of the affordable housing incentive program is to provide incentives above and beyond those offered by the density bonus program in CDMC 18.185.050 (Density bonus program) in order to encourage the development of affordable and mixed income housing, consistent with the Concord housing element. The development standards listed in this section modify those established in other applicable divisions of the development code. The standards are intended to help Concord meet its fair share of the region’s affordable housing

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needs while improving and complementing the design of surrounding neighborhoods, protecting the use and enjoyment of neighboring properties, and promoting economic and environmental sustainability.

B. Applicability.

3. Where parcels within these zones are also covered by an airport overlay designation, all requirements of Chapter 18.100 CDMC (Airport Overlay District (A)) shall apply.

4. Projects utilizing the density bonus provisions in this section are not eligible for additional density bonuses pursuant to CDMC 18.185.050. The intent of the affordable housing incentive program is to provide an alternative to the density bonus program, and the bonuses are not additive.

C. Eligibility. The provisions of this section shall apply to all projects in eligible zoning districts meeting the following criteria:

3. Development projects exceeding the affordability thresholds identified in subsection (C)(1) and (2) of this section are eligible for the provisions of this section.

4. A minimum parcel area of at least 10,000 square feet (prior to any subdivision associated with the proposed project) is required for a project to be eligible for the provisions of this section.

Table 18.185.060(A)

N/A N/A
RH 1 unit per 435 SF lot area (100
DU/AC)
1 unit per 300 SF lot area (45
percent bonus)

N/A N/A
NC 1 unit per 1,815 SF lot area (24
DU/AC)
1 unit per 1,300 SF lot area (40
percent bonus)

0.35 1.0

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Zone Maximum Base Density (specified
in Division II of this title)
Modified Density for Qualifying
Projects
Maximum Base FAR
(specified in Division II
of this title)
Modified FAR for
Qualifying Projects
(2)
CO 1 unit per 1,360 SF lot area (32
DU/AC)
1 unit per 970 SF lot area (40
percent bonus)

1.0 1.4
CMX 1 unit per 1,090 SF lot area (40
DU/AC)
1 unit per 750 SF lot area (45
percent bonus)

1.0 1.5
DMX 1 unit per 435 SF lot area (100
DU/AC)
1 unit per 300 SF lot area (45
percent bonus)

6.0 6.0
DP 1 unit per 435 SF lot area (100
DU/AC)
1 unit per 300 SF lot area (45
percent bonus)

4.0 4.0
TS overlay Add 25 percent to base densities
above
Where 40 percent bonus is indicated
above, replace with 50 percent.

Where 45 percent bonus is indicated
above, replace with 55 percent.

Add 25 percent to base
FAR above
Add 20 percent to
base FAR above

Table 18.185.060(B)

Modified Lot Area and Lot Dimension Standards for Qualifying Affordable Housing and Mixed Income Developments (*)

Zone
Base Minimum Lot
Size (as specified in
Division II of this
title)
Modified
Minimum Lot
Size for
Qualifying
Projects
Base Minimum Lot
Width (as specified
in Division II of this
title)
Modified Minimum
Lot Width for
Qualifying Projects
Base Minimum Lot
Depth (as specified
in Division II of
this title)
Modified
Minimum Lot
Depth for
Qualifying
Projects
RM 1,920 (detached)
1,440 (attached)
1,800 (detached)
1,200 (attached)
24 feet (detached)
18 feet (attached)
22 feet (detached)
16 feet (attached)
80 feet (detached)
60 feet (attached)
70 feet
(detached)
50 feet (attached)
RH 5,000 4,000 50 feet 40 feet 100 80 feet
NC 10,000 10,000 100 feet 100 feet 100 feet 100 feet
CO 10,000 5,000 100 feet 50 feet 100 feet 80 feet
CMX 10,000 5,000 100 feet 50 feet 100 feet 80 feet
DMX 10,000 5,000 100 feet interior
110 feet corner
50 feet interior
60 feet corner
100 feet 80 feet
DP 5,000 4,000 50 feet interior
60 feet corner
40 feet interior
50 feet corner
100 feet 80 feet
TS overlay N/A N/A N/A N/A N/A N/A

(*) Lots smaller than the standards listed here may be created within a multifamily development that is subdivided into in dividual fee-simple units.

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Table 18.185.060(C)

Modified Lot Coverage Standards for Qualifying Affordable Housing and Mixed Income Developments(*)

(*) For RM and RH zones only. Development in NC, CMX, D P, and DMX is not subject to lot coverage standards. Lot coverage for RH is for the entire project site. Where an RH site is subdivided into small fee simple parcels (e.g., condominiums), there is no lot coverage limit for the individual units.

G. Height. Qualifying affordable and mixed income housing developments may utilize the height standards in Table

18.185.060(D), in lieu of the height standards in Division II of this title.

Table 18.185.060(D)

Modified Height Standards for Qualifying Affordable Housing and Mixed Income Developments

I. Transitional Requirements. Qualifying affordable and mixed income housing developments shall be subject to all transitional requirements established by CDMC 18.150.180 (Transitional requirements), including height limits and setbacks on properties abutting lower density residential zones.

J. Open Space. Qualifying affordable and mixed income housing developments may utilize the open space standards in Table 18.185.060(E), in lieu of the open space standards in CDMC 18.150.100. Page 126 of 255

Table 18.185.060(E)

Modified On-Site Open Space Requirements for Qualifying Affordable Housing and Mixed Income Developments

(*) Higher standards apply in small lot subdivisions. See Chapter 18.155 CDMC.

K. Parking.

1. Qualifying affordable and mixed income housing developments may utilize the parking standards in Table

18.185.060(F), in lieu of the parking requirements in Division IV of this title.

Table 18.185.060(F)

Modified Parking Standards for Qualifying Affordable Housing and Mixed Income Developments

1.75 spaces plus 0.25 spaces for each
additional bedroom above 3

1.25 spaces plus 0.25 spaces for each
additional bedroom above 3
Guest spaces 1 space for each four units None required None required TS overlay Can reduce above requirements by
25 percent
Can reduce above requirements as
noted in the last column of this table
N/A

2. As indicated in Chapter 18.160 CDMC (Parking, Loading, and Access), the review authority may grant further reductions for senior and special needs housing based on quantified information provided by the applicant that documents the need for fewer spaces.

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3. Other parking standards prescribed by Chapter 18.160 CDMC (Parking, Loading, and Access) continue to apply, to the extent they do not conflict with the numeric requirements of this table.

5. Affordable housing developments in the DP and DMX zones which are within an established vehicle parking district may pay an in-lieu parking fee as prescribed by CDMC 18.160.060(B) (In-Lieu Fees) rather than providing required parking on site or off site.

Table 18.185.060(G)

Adjustments to Allowed Uses and Permit Requirements for Qualifying Affordable Housing and Mixed Income Developments

(1) Limitations on ground floor resi dential uses apply in the NC and DP zones, as noted in Division II of this title. Ground floor residential uses are not permitted in the NC zone and are not permitted on sites facing Todos Santos Plaza in the DP zone. At the discretion of the review authority, a project which meets the affordability criteria listed in this chapter located on a site of at least two acres in the NC zone may include ground floor residential uses, provided the ground floor street frontage is developed with commercial use and residential uses occupy less than 50 percent of the ground floor area.

M. Additional Incentives. Consistent with the density bonus provisions established by C DMC 18.185.050, affordable and mixed income housing developments are eligible for additional incentives, including expedited permit processing, reduced or deferred fees, and direct financial aid through housing assistance programs.

N. Neighborhood Meeting. Consistent with CMC Chapter 18.405 CDC (Permit Application Filing and Processing), a neighborhood meeting shall be required following submittal of an application to the planning division for any project requesting affordable housing incentives that is located within a residential zoning district or within 300 feet of a low density residential (RR, RS, RL) zoning district, as measured from the edge of the parcel. Public notification for this meeting shall comply with the city’s notification requirements and procedures, including mailed or delivered notices to all properties within 500 feet of the subject parcel.

O. Duration of Affordability. The term of affordability for units approved under this program shall comply with CDMC 18.185.090 (Duration of affordability). [Amended during 2014 recodification; Ord. 12- 4. DC 2012 § 122-581].

18.185.070 Affordable housing agreements.

A. Any project subject to the inclusionary housing requirements of CDMC 18.185.040 or utilizing the density bonus or development incentives of CDMC 18.185.050 orand 18.185.060 shall require the developerapplicant to enter into an aAffordable hHousing aAgreement. The form and contents of the agreement shall be consistent with the

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provisions of Sections 65864 to 65869 of the California Government Code and shall be subject to review by the Ccity Aattorney in consultation with the Community Development Departmentplanning division. Affordable hHousing aAgreements shall be recorded against the property prior to the issuance of building permits in order to ensure implementation of the requirements of this chapter.

B. The agreement shall include, but is not limited to, the following:

1. The total number of units approved for the development, including the number of affordable housing units;

2. The location, unit sizes (in square feet), lot size (in square feet, if applicable), and number of bedrooms of the affordable housing units;

3. A description of the household income groups to be accommodated by the project and a calculation of the affordable rent or sales price;

4. The party responsible for certifying sales prices or annual rental rates, and the process that will be used for certification;

5. A schedule for the completion and occupancy of the affordable housing units;

6. Duration of affordability for the affordable housing units, including provisions for resale and deed restrictions on affordabletargeted housing units that are binding on property upon sale or transfer;

7. Provisions covering the expiration of the agreement, including notice prior to conversion to market -rate units and a right of first refusal for the Ccity and/or the distribution of accrued equity for for-sale units;

8. A description of the remedies for breach of the agreement by either party.

C. Additional Agreement Provisions for For-Sale Housing. In the case of for-sale housing, the affordable housingregulatory agreement shall provide the following conditions governing the initial resale and use of affordable units:

1. Affordable units shall, upon initial sale, be sold to eligible very low, low-er, or moderate-income households at an affordable sales price and housing cost, or to qualified households as defined by the development code.

2. The initial purchaser of each affordable unit shall execute an instrument or agreement approved by the Cc ity restricting the sale of the unit in accordance with this chapter during the affordability term. Such instrument or agreement shall be recorded against the parcel and shall contain such provisions as the Cc ity may require in order to ensure continued compliance with this chapter.

3. Affordable units which are initially owner-occupied may not be rented by the owner, except in cases of substantial hardship including, but not limited to, active military duty and illness, and on specified terms as provided in anthe Affordable Housing aAgreement acceptable to the Community Development Directorhousing manager.

4. The maximum sales price permitted on resale of an affordable unit shall be the lower of: (a) fair market value or (b) the seller’s lawful purchase price, increased by the rate of increase of area median income during the seller’s ownership. The sales price may also be modified to account for capital improvements made by the seller, deferred maintenance, and the seller’s necessary costs of sale. The Cc ity shall enter into an equity sharing agreement in accordance with Government Code Section 65915(c) to address disposition of proceeds upon resale.

5. The Ccity may suspend resale restrictions on for-sale units in the event they create an economic hardship for the owner due to periods of significant real estate market decline, based on the criteria defined in the Cc ity of Concord’s inclusionary housing program guidelines.

6. The resale restrictions shall provide an option to the Ccity to purchase any affordable owner-occupancy unit at the maximum price which could be charged to a purchaser household, at any time the owner proposes sale.

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D. Additional Agreement Provisions for Rental Housing. In the case of rental housing development, the affordable housingregulatory agreement shall provide for the following conditions governing the use of affordable units during the use restriction period:

1. The rules and procedures for qualifying householdstenants, establishing affordable rent rates, filling vacancies, and maintaining affordabletarget units for qualified householdstenants;

2. Provisions requiring owners to verify householdtenant incomes and maintain books and records to demonstrate compliance with this section;

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

4. A requirement to apply the same rental terms and conditions to the households tenants of affordable units as are applied to other householdstenants, except as required to comply with this chapter (for example, rent levels) or with other applicable government subsidy programs. Discrimination against persons receiving housing assistance is prohibited. [Ord. 12-4. DC 2012 § 122-582].

18.185.080 Application requirements and review.

A. Submittal Requirements. An applicant/developer seeking a density bonus, development concession or incentive, and/or other affordable housing program incentive pursuant to CDMC 18.185.050 or 18.185.060 shall submit an application which complies with the submittal requirements set by Division VII of this title (Permits and Permit Procedures). If not already included in that submittal, the following additional information shall be required:

1. The total number of units in the project;

2. The number and affordability level of proposed affordable housing units or other units to be produced through density bonus provisions;

3. The zoning and general plan designations and assessor parcel number(s) of the project site;

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

5. If a concession or incentive is requested, the application shall describe each specific development concession or incentive sought, and why it is necessary to provide the affordable units;

6. If requesting a density bonus based on land donation in accordance with Density Bonus Law Government Code Section 65915(g), information sufficient to permit for the Ccity to determine that the proposed donation conforms with the requirements of Density Bonus LawSection 65915 and the Government Code ;

7. If requesting an additional density bonus or incentive based on the provision inclusion of a child care facility in accordance with Density Bonus Law as specifically set forth in Government Code Section 65915(h), the application must:
a. Provide the location of the proposed child day care facility and the proposed operator; b. Agree to have contracted with a child day care facility operator for operation of the child day care facility before the first building permit is issued;
c. Agree that the child day care facility will be in operation when the first certificate of occupancy is issued; and
d. Agree to meet the requirements specified in CDC 18.185.050(G)(2).

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approval or disapproval of an application shall be made by the review authority unless direct financial assistance is requested. If direct financial assistance is requested, the Ccity Ccouncil shall have the sole authority to make the final decision on the application.

C. Following receipt of the application and in a manner consistent with the Permit Streamlining Act and CM C Chapter 18.405CDC (Permit Application Filing and Processing), the Ccity shall provide to an applicant or developer a letter which identifies project issues of concern and the procedures for compliance with this chapter. The planning division shall inform the applicant/developer that the requested concession(s) or incentive(s) shall be recommended for consideration with the proposed housing development, or that alternative or modified concession(s) or incentive(s) shall be recommended.

D. The review authority provisions established by CDMC 18.185.030 (Review authority) and Division VII (Permits and Permit Procedures) of this title shall apply to all applications for a density bonus or affordable housing incentive or concession. [Ord. 12-4. DC 2012 § 122-583].

18.185.090 Duration of affordability.

The duration of affordability for units created through the inclusionary housing zoning , density bonus, or affordable housing incentive provisions of this chapter shall be as follows:

A. The affordable sales price for ownership units shall be restricted for a period of 45 years pursuant to an aAffordable hHousing aAgreement recorded against the property. Resale restrictions may be released on a case by case basis by the Ccity mManager or designee due to undue hardship or a severe downturn in the residential real estate market, as detailed in the Affordable Housing Agreementbased on criteria defined in the city of Concord’s inclusionary housing program guidelines.

B. The monthly rent for rental inclusionary affordable rental units shall be restricted for a period of 55 years pursuant to an aAffordable hHousing aAgreement recorded against the property. [Ord. 12-4. DC 2012 § 122-584].

18.185.100 Compliance monitoring fees.

The Ccity Ccouncil by resolution may establish compliance monitoring fees to recover the Cc ity’s actual, reasonable costs incurred for ongoing implementation of this chapter. For affordable ownership units, the fee shall be payable by the developer or future seller of the property at the time of each sale or transfer during the term of the applicable aAffordable hHousing aAgreement. For affordable rental inclusionary units, the property owner shall pay an annual fee each year during the term of the applicable aAffordable hHousing aAgreement. [Ord. 12-4. DC 2012 § 122-585].

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1 AHO stakeholder meeting notes
November 1, 2023 (11:00 a.m. – 12:00 p.m.)
Zoom meeting
Participants
Lisa Vorderbrueggen (BIA)
Read.ai meeting notes
Atisha Varshney (Novin Development)
Mariana Moore (Ensuring Opportunity Campaign/Raise the Roof) Joe Summers (Contra Costa Labor Council)
Eric Burk
Art
4082104062
Aaron Tiedemann (East Bay Housing Organization)
Ady
Participant input
Lisa Vorderbrueggen
Ownership housing developers are challenged to provide rental units as compliance with this type of ordinance. Typically sell the units and move on.

Strongly recommend allowing in-lieu fee for ownership developments.

How close to 600 unit threshold?
Not many BIA members building in Concord.

San Francisco considering rolling back fees to help achieve more housing development.

San Jose - Costs to produce an affordable unit - $1 million.

Will submit comment letter.

Aaron Tiedemann
Concord policies have changed since initial feasibility. Objective design standards have been implemented which could make it easier to develop.

Have heard that costs in Concord are high due to lack of design standards and parking requirements.

Attachment 8

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AHO stakeholder meeting notes
November 1, 2023

2 6% rate for rental projects would be the lowest requirement in the East Bay.

Disconnect between market analysis and what is happening in other cities where housing is being built with higher percentage inclusionary requirements.

Other cities have inclusionary rates of 10-15%.

Mariana Moore

Shares concerns of previous speaker.

6% seems inadequate from a public policy perspective and current human reality. In Concord market analysis is a limited perspective with which to consider this issue.

Policies have deep and lasting impacts. Developer ability to make a profit only one element of the issue.

Concerned about the reputation of Concord if inclusionary housing program is the lowest in the Bay Area.

Recommend chart with other city inclusionary housing programs listed.

Ady

Easier for impacted families to provide feedback when stakeholder meetings are conducted when families are not working. Provide translation services.

Conduct meeting again at a time impacted communities can participate.

Lisa Vorderbrueggen

Additional context. If a project is not economically feasible, units will not get built and Concord will get no affordable units.

Aaron Tiedemann

Support making it is easier to develop all forms of housing.

Don’t think reducing the rental inclusionary requirements by this much is the way to encourage development. Sacrifices too much affordable unit development.

Small percentage and miniscule very low percentage is cynical.

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AHO stakeholder meeting notes
November 1, 2023

3 Many other ways to make housing easier to develop by reducing parking requirements, objective design standards, and easier entitlement processes.

Request for when ordinance presented to the City Council. Apply proposed policies to current pipeline to demonstrate how many units would be created or in- lieu fees would be generated.

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Figure 1: Sites Identified
Attachment 9

SITES INVENTORY WITH LOT CONSOLIDATION

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Figure 2: Downtown

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Figure 3: Clayton Valley (West)

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Figure 4: Clayton Valley (East)

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Figure 5: Ygnacio Valley

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Figure 6: Lime Ridge

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Figure 7: Olivera/Port Chicago

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Attachment 10

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Page 143 of 255 ends

Page 144 of 255 ends

Page 145 of 255 ends

Revised Draft Report
Feasibility Analysis of Inclusionary
Housing Requirements in Concord
Prepared for:

City of Concord
Prepared by:

Economic & Planning Systems, Inc.

EPS #211120
Revised August 7, 2023
Attachment 11

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Table of Contents

1. Introduction and Summary of Recommendations ......................................... 2

2. Methodology and Assumptions .................................................................. 4 Return Metrics and Feasibility Thresholds ......................................................... 4 Product Prototypes ........................................................................................ 5 Development Cost Assumptions ...................................................................... 6 Revenue and Value Assumptions ..................................................................... 6

3. Feasibility Analysis .................................................................................. 8 Ownership Scenarios ..................................................................................... 8 Rental Scenarios ......................................................................................... 10

4. Implementation Considerations................................................................ 12

Appendix A: Survey of Inclusionary Requirements in Select California Jurisdictions Appendix B: Schedule of Onsite Build Requirements for Rental and Ownership Development Projects

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Economic & Planning Systems
2 1. Introduction and Summary of
Recommendations
Inclusionary housing programs require that new market-rate residential development projects include a certain percentage of housing units at rents or sales prices that are affordable to lower-income households. These programs also may include the option for new development to pay a fee in-lieu of providing affordable units on-site, as an alternative means of complying with the requirements. Inclusionary housing programs are one of many tools cities can use to achieve more affordable housing in their communities.

The City of Concord is updating its inclusionary housing program, and Economic & Planning Systems, Inc. (EPS) was retained by the City to conduct an economic feasibility study to determine what level of inclusionary requirements may be supportable in Concord. EPS analyzed how supporting the provision of these units would impact the financial feasibility of new market-rate residential development. Such an analysis is intended to provide the City with additional context regarding the implications of updated inclusionary requirements – namely, whether or not the cost associated with an updated inclusionary requirement is too great for new residential projects to absorb and would, therefore, make any new residential development in the city extremely challenging or even completely financially infeasible.

EPS’s preliminary recommendations include several revisions to the City’s existing inclusionary housing program for new residential development and reflect feedback from City staff and the Housing and Economic Development (HED Commission).

1. New market-rate residential development of five units or more, both rental and ownership, would be subject to the City’s inclusionary requirement.

2. For new market-rate, for-sale residential development, EPS recommends an inclusionary requirement of 15 percent split 7.5 percent Low and 7.5 percent Moderate, meaning that a 100-unit development would be required to provide 15 affordable units onsite, half of which would be affordable to Low-income households and half of which would be affordable to Moderate-income households. Developers opting to pay a fee in lieu of providing the units onsite as part of the development would pay an in-lieu fee of approximately $20 per square foot of market rate for sale development.

3. For new market-rate, rental residential development, EPS recommends an inclusionary requirement of 6 percent, split 1 percent Very Low, 1 percent Low, and 4 percent Moderate, meaning that a 100-unit development would be required to provide 6 affordable units onsite, of which 1 would be affordable to a Very Low-income household, 1 would be affordable to a Low-income

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Economic & Planning Systems
3 household, and 4 would be affordable to Moderate-income households.

Developers opting to pay a fee in lieu of providing the units onsite as part of the development would pay an in-lieu fee of approximately $15 per square foot of market rate rental development.

4. In the case of fractional units (i.e., application of the inclusionary requirement results in a non-whole number of affordable units) where the fraction is 0.5 or greater, the applicant would round up and build the unit onsite. If the fraction is less than 0.5, the applicant may round up and build the unit onsite or may pay a fee on the fractional amount.

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2. Methodology and Assumptions
In an inclusionary program, developers are required to set aside a portion of their units for lower-income households. When a developer builds the affordable units on site, the project’s development costs are not significantly affected. However, the revenue the developer can expect from the affordable units is less than the revenue from the market- rate units. The developer is, in effect, subsidizing the development of the affordable units. The subsidy is greater for units affordable to Very Low-income households than it is for Low-income households and Moderate-income households.

In some cases, the developer may opt to pay a fee in lieu of providing the units on site.

When a developer pays an in-lieu fee, all the units are sold or rented as market-rate units, so the revenue potential is not affected. However, the development costs are affected by the amount of the in-lieu fee, which is typically paid at the time of building- permit issuance or certificate of occupancy.

Return Metrics and Fe asibility Thresholds
The assessment of financial feasibility for real estate development products is based on calculating financial return metrics and comparing them against typical industry target thresholds. In the case of residential development, relevant return metrics are based on comparing total project revenues to total project development costs.

This analysis established a feasibility threshold based on two standard return metrics used by real estate developers. These return metrics reflect the value of the investment in a project, and are a critical element in informing a developer’s “go/no-go” decision to proceed with development:
 For ownership, or for sale housing products (typically single family detached and attached homes, including townhomes and condominiums), the feasibility threshold is based on the return metric of “profit margin,” calculated as the percentage by which total project value exceeds total project cost. Based on EPS research and feedback from the developer community, the analysis assumes that developers in Concord and the surrounding region will require at least a 20 percent profit margin on for-sale development projects. Therefore, any project attaining a profit margin at or above 20 percent would be considered feasible in this analysis.

 For rental housing products (typically, multifamily apartments), the feasibility threshold is based on the return metric of “yield on cost,” calculated by dividing the annual net operating income (NOI) by the total costs of development. 1 Based on EPS

1 Net operating income reflects total rent collected minus operating costs.

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Economic & Planning Systems
5 research and experience, the analysis assumes that developers in Concord and the surrounding region will require a yield-on-cost of at least 5.0 percent.

It is important to note that these return metrics do not account for the time value of money and are not based on any assumption regarding project timeline. EPS assumptions for prototype revenues and costs used to calculate the return metrics are detailed in the following sections.

Product Prototypes
The prototype residential products used in the feasibility analysis were informed by EPS research on the local housing market. Research included review of recent developments and proposed projects, discussions with developers active in the region, and discussions with City staff. The characteristics for the prototype development products are summarized in Table 1. They include one rental prototype – multifamily apartments - and one for-sale prototype – single-family detached homes.

Table 1 Prototype Residential Products

The characteristics for each prototype are meant to represent average unit sizes, with the resulting analysis demonstrating feasibility for an average residential project. The findings of this analysis assume that the unique unit mix of any particular project will, in aggregate, conform to these average unit sizes. However, any specific project will have its own cost and revenue factors that may be impacted in part by its unit mix.

Item
Apartment
Units
Single-Family Detached
Units
Tenure Rental For Sale
Building Type Multifamily Detached
Density 75 units/acre 10 units/acre
Unit Bedrooms 2 Bedrooms 3 Bedrooms
Unit Size (Square Feet) 1,000 2,000
Parking Type Structured Garage Attached Garage

1.5 spaces 2.0 spaces
Sources: City of Concord; Developer interviews; Economic & Planning Systems, Inc.

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Development Cost Assumptions
Housing development costs categories include land acquisition, site preparation, hard costs (e.g., construction labor and materials), and indirect or “soft” costs (e.g., architecture, entitlement, marketing, etc.). For multifamily projects that include a structured garage, EPS also defines parking costs per unit as a separate line item. Data from recent developments and land transactions in the local market have been combined with information from interviews with various housing developers to inform the development cost assumptions used in this analysis.
 Multifamily apartments are estimated to cost approximately $720,000 per unit.

This assumes land acquisition costs of $3.5 million per acre, hard costs of $370 per square foot, plus a 20 percent labor premium, parking costs of approximately $50,000 per space, and soft costs of 30 percent. A builder fee of 3 percent is assumed.
 Single family detached homes are estimated to cost $1.1 million, including 20 percent profit. This assumes land costs of $2.0 million per acre, hard costs of $240 per square foot, plus a 15 labor premium, and soft costs of 25 percent. A builder fee of 5 percent is assumed.

Revenue and Value Assumptions
Market-Rate Rents
For rental apartments, the metric used to determine feasibility is yield-on-cost, which is calculated as annual net operating income (NOI) divided by development costs. For market rate rent revenue assumptions, EPS compiled market-rate rents based on conditions and requirements in Concord and found the average rent for newly constructed multifamily product in Concord is $4,000 per month. Annual operating expenses are assumed at $11,000 per market rate unit, including property tax, resulting in annual NOI of $37,000.

Market-Rate Sales Prices
For the for-sale prototypes, the value of the unit is equal to the estimated sale price. The sales prices for each prototype are established based on market research and conversations with local developers. Newly constructed single-family detached homes are selling for approximately $1.4 million on average.

Affordable Housing Values and Gap Analysis
In general, very-low-income households are defined as those earning up to 50 percent of AMI; low-income households earn up to 80 percent AMI; and moderate-income households earn up to 120 percent of AMI. Income limits are published by the State Department of Housing and Community Development (HCD) for each county in

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Economic & Planning Systems
7 California.2 For purposes of this analysis, the moderate-income ownership household is assumed to earn 110 percent of AMI. The moderate-income rental household is assumed to earn the median income (100 percent of AMI). These assumptions for moderate- income households are consistent with the City’s income qualifying practices.

Based on the preceding household income assumptions, EPS calculated the maximum spending towards housing costs affordable at each income level. The analysis assumes no more than 30 percent of gross household income should be allocated towards housing- related costs, including utilities, for very low and low-income households. For moderate- income households, the analysis assumes no more than 35 percent of gross household income should be spent on housing-related costs. For rental units, housing costs include rent and utilities. For for-sale units, housing costs include mortgage and interest payments, insurance, property taxes, and Homeowners Association (HOA) fees. The amount available for the mortgage payment is converted into an affordable home sale price assuming a 20 percent down payment and a 30-year mortgage with a fixed interest rate of 5 percent.

Gap Analysis
Comparing the supportable values for very low-, low-, and moderate-income households against development costs results in affordability gaps in each of the three income cohorts for both rental and ownership units, as shown in Figure 1.

Figure 1 Onsite Gap Analysis

2 See HCD State Income Limits 2023, https://www.hcd.ca.gov/sites/default/files/docs/grants-and- funding/income-limits-2023.pdf

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3. Feasibility Analysis
To test the feasibility of requiring onsite inclusionary units and associated in lieu fees, EPS developed a feasibility model to compare different inclusionary requirements and fee level scenarios for both rental and ownership developments.3 The model is a financial pro forma that reflects the expected costs to build new rental and ownership housing and compares those costs to the revenues that could be generated from the projects given various mixes of market-rate and affordable housing. The inclusionary requirement, or in lieu fee, is treated as a variable that can be adjusted up or down as the model calculates the developer profit, or development feasibility.

Ownership Scenarios
The various scenarios below test the feasibility of incorporating different fee levels and affordability requirements, with feasibility evaluated against a 20 percent profit margin. 4 These revenue and cost estimates result in a range of profit margins (net revenue divided by gross revenue), which vary by scenario, as shown in Figure 2.

The feasibility scenarios are:
 Current Ordinance – This scenario evaluates both a 10 percent inclusionary requirement targeted at moderate-income levels and a 6 percent inclusionary requirement at low-income levels.
 Current In Lieu Fee – This scenario evaluates the current in-lieu fee of $9 per square foot. This fee currently only applies to project sizes of five to nine units or to fractional units.
 No Inclusionary or In Lieu Fee – This scenario shows the estimated profit margin that could be achieved by developers if they are not required to pay any fee or provide any inclusionary units.
 Maximum Feasible Fee – This scenario solves for the maximum fee that still allows developer to achieve a 20 percent profit margin. This maximum fee is calculated to be approximately $50 per square foot.
 Target Recommended Fee – The target recommended fee of $20 per square foot of market rate development is set below the maximum feasible fee to allow some room for economic and market shifts and is aligned with other jurisdictions’ in lieu fees.

3 The financial scenarios for the rental and homeownership markets differ requiring a model for each.
4 Based on recent discussions with developers in the region, EPS assumes that developers would require at least a 20 percent profit margin to accept the risk associated with a project.

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Economic & Planning Systems
9 Figure 2 Ownership Feasibility Results by Scenario

Recommended In Lieu Fee
Even though a higher in-lieu fee may be feasible, EPS recommends targeting an in-lieu fee of $20 per foot of market-rate, ownership residential development. For example, a 10-unit project, with unit sizes of 2,000 sq.ft. per unit, would pay an in-lieu fee of $400,000 (10 units x 2,000 sq.ft. x $20 per sq.ft.). This recommendation is based on EPS’ evaluation of the maximum feasible fee based on recent discussions with developers and when compared with the in-lieu fees of other surveyed jurisdictions 5 (summarized in
Appendix A). A $20 per square foot fee is greater than what Concord currently has in place and consistent with other jurisdictions surveyed but is well below the maximum feasible fee. An in-lieu fee of up to $20 per square foot would still allow sufficient profit to allow Concord to remain economically attractive to developers, while also not being so high as to narrow the window of feasibility to account for market fluctuations or other unanticipated project costs.

Recommended Onsite Inclusionary Requirement for Ownership Projects EPS recommends an onsite inclusionary option that is structured such that the requirements align with an in-lieu fee of approximately $20 per square foot. While there

5 The in-lieu fee in other surveyed jurisdictions ranges from $12 to $20 per square foot.

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%
Current
Inclusionary
(10% Moderate)
Current
Inclusionary
(6% Low)
Current
Fee
($9/sq.ft.)
No Inclusionary
or Fee
Maximum
Feasible Fee
($116/sq.ft.)
Recommended
Target Fee
($20/sq. ft.)
Profit Margin
20% profit margin
required for feasibility

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are several potential approaches to defining the onsite requirements, the scenario recommended by the HED reflects a 15 percent onsite inclusionary requirement, with ½ of the affordable units set aside as affordable to low-income households and ½ set aside as affordable to moderate-income households. The recommended requirement does not include units affordable to very-low-income households as it is very difficult to qualify very low-income households for ownership housing.

Rental Scenarios
As with homeownership, EPS evaluated several scenarios for rental housing based on an illustrative 100-unit project, adjusting the inclusionary requirements and fee levels for each. The results show that the City’s current6 onsite inclusionary requirements may be challenging for developers to incorporate into their rental projects due to the significant subsidies required at the very low and low income levels as shown in Figure 3 and as outlined below:
 Current Ordinance – This scenario evaluates both a 10 percent inclusionary requirement targeted at low-income levels and a 6 percent inclusionary requirement at very low-income levels. Neither option appears feasible.  Current Impact Fee7 – This scenario evaluates an impact fee of $4 per square foot, which is what the current impact fee would be if the rental inclusionary program were active.
 No Inclusionary or Fee – This scenario shows the estimated return that could be achieved by developers if they are not required to pay any fee or provide any inclusionary units.
 Maximum Feasible Fee – This scenario solves for the maximum fee that still allows developer to achieve a 5 percent yield on cost, which is calculated to be approximately $20 per square foot.
 Target Recommended Fee – The target recommended fee of $15 per square foot of market rate development is set below the maximum feasible fee to allow some room for economic and market shifts and is aligned with other jurisdictions’ in lieu fees.

6 Due to the 600-unit threshold currently in place, the onsite and in-lieu fee inclusionary requirements are not being applied to rental projects.
7 The rental fee was established as an impact fee because of the 2009 decision of Palmer/Sixth Street Properties, L.P., et al.v. City of Los Angeles, whereby the Court of Appeals found the City of Los Angeles’s inclusionary housing ordinance in conflict with and was preempted by the Costa-Hawkins Act. The Costa-Hawkins Act exempts qualifying residential rental units from rent control ordinances and allows landlords to set the rental rate. At the time Concord’s impact fee was adopted, the legislature had not passed AB 1505 allowing for rental inclusionary housing in lieu fees to be established without conflicting with the Costa-Hawkins Act.

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Economic & Planning Systems
11 Figure 3 Rental Feasibility Results by Scenario

Recommended In Lieu Fee
Evaluating the maximum feasible fee in the context of in lieu fees in other jurisdictions surveyed, and based on EPS’s discussions with developers, EPS recommends an in-lieu fee of approximately $15 per square foot for new market-rate, rental residential development. A $15 per square foot fee is below the maximum feasible fee and consistent with other jurisdictions surveyed. In addition, an in-lieu fee of up to $15 per square foot would still allow sufficient profit to allow Concord to remain economically attractive to developers, while also not being so high as to narrow the window of feasibility to account for market fluctuations or other unanticipated project costs.

Recommended Onsite Inclusionary Requirement for Rental Projects EPS recommends an onsite inclusionary option that is structured such that the requirements align with an in-lieu fee of approximately $15 per square foot, returning an equivalent yield-on-cost. While there are several potential approaches to defining the onsite requirements, the scenario recommended by the HED reflects a 6 percent onsite inclusionary requirement, with 1 percent of the units set aside as affordable to very low- income households and 1 percent of the units set aside as affordable to low-income units, and 4 percent of the units set aside as affordable to moderate-income households.

4.80%

4.85%

4.90%

4.95%

5.00%

5.05%

5.10%

5.15%

5.20%
Current
Inclusionary
(10% Low)
Current
Inclusionary
(6% Very Low)
Current
Fee
($4/sq.ft.)
No Inclusionary/
No Fee
Maximum
Feasible Fee
($20/sq.ft.)
Recommended
Target Fee
($15/sq. ft.)
Yield-on-Cost
5% yield-on-cost
required for feasibility

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4. Implementation Considerations
The Ordinance will identify the onsite inclusionary requirements for new rental and ownership developments and address key implementation considerations. The inclusionary housing program will apply to residential development projects consisting of five or more units.

Because the onsite inclusionary requirements reflect blended income levels, there may be some question about which income cohort is addressed first as the affordable units are built. In the case of the ownership requirement, the first affordable unit built will be a moderate-income unit, the second will be a low-income unit, the third will be a moderate- income unit, and so on. In the case of the rental requirement, the pattern is less obvious.

Once the number of onsite units is established, the distribution of the units among the pertinent income categories will follow a set schedule. Appendix B is an example of a set schedule.

Developers opting to pay a fee rather than providing the units onsite as part of the development would pay an in-lieu fee of approximately $15 per square foot of market- rate rental development or approximately $20 per square foot of market-rate ownership development. The fee would be charged per square foot of market-rate residential development. For example, a 10-unit market-rate, multifamily, rental project, with units of 1,000 square feet would pay $150,000 (10 units x 1,000 sq.ft. per unit x $15 per sq.ft.).

A question that often arises is how best to handle fractional units (i.e., application of the inclusionary requirement results in a non-whole number of affordable units). In the case of fractional units, the fraction would be rounded up to the next whole number if the fraction is one-half or more. If the result includes a fraction below one-half, the applicant shall have the option of either rounding up to the next whole number and providing an additional inclusionary unit or paying a fee for the fractional unit.

As an example, take a 42-unit single family home development. The 15 percent inclusionary requirement would require that 6.3 units be set aside as affordable to low and moderate-income households. Of the six units to be provided onsite, three would be offered at prices affordable to low-income households and three would be affordable to moderate-income households. The fraction, 0.3, is less than 0.5, so the developer would be permitted to pay a fee to satisfy that portion of the requirement. As shown in Table 2, the fee per affordable unit is $254,838, and 0.3 of $254,838 is $76,451. The fee per affordable unit reflects a blend of the required subsidies that is consistent with the onsite inclusionary requirement. The fee per affordable rental unit is $173,034.

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Economic & Planning Systems
13 Table 2 In-Lieu Fees Associated with Recommended Onsite Ownership Requirement

Table 3 In-Lieu Fees Associated with Recommended Onsite Rental Requirement

Item Very Low Low Moderate Total
per
Affordable Unit
per
Market-Rate Unit
per
Market-Rate Sq.Ft.

Units 0.0 7.5 7.5 15.0 15 100
AMI 50% AMI 80% AMI 120% AMI
Subsidy per Unit $698,876 $478,666 $31,010
Total Subsidy Required $0 $3,589,994 $232,579 $3,822,573 $254,838 $38,22 6 $19.11 In-Lieu Fee
Item Very Low Low Moderate Total [1]
per
Affordable Unit
per
Market-Rate Unit
per
Market-Rate Sq.Ft.

Units 1.0 1.0 4.0 6.0 61 0 0
AMI 50% AMI 80% AMI 100% AMI
Subsidy per Unit $458,039 $237,054 $85,778
Total Subsidy Required $458,039 $237,054 $343,113 $1,038,207 $173,034 $10,382 $10.38 In-Lieu Fee

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Concord City CouncilJanuary 23, 2024

Concord City Council
January 23, 2024