Cotati City Council
Agenda Staff Report
Item type: PUBLIC HEARINGS (ACTION)
To: City Council
Subject: CONSIDERATION AND FIRST READING OF A DRAFT
ORDINANCE AMENDING CHAPTER 17.31 AFFORDABLE
HOUSING REQUIREMENTS AND CHAPTER 17.32 DENSITY
BONUSES OF THE COTATI MUNICIPAL CODE TO
IMPLEMENT CHANGES TO AFFORDABLE HOUSING LAW
AND POLICY AND CREATE THE COTATI DENSITY BONUS.
Date: November 12, 2024
Written by: Noah Housh, Director of Community Development Recommendation
It is recommended by the Community Development Department and the Planning Commission that the City Council consider and conduct a first reading of the draft ordinance amending Chapter 17.31 Affordable Housing Requirements and Chapter 17.32 Density Bonuses and of the Cotati Municipal Code to implement changes to affordable housing law and policy and to create the Cotati Density Bonus.
Background
In June 2023, the City adopted its 6th Cycle Housing Element, which identifies numerous goals, policies and programs to address the housing needs of the community over the next housing “cycle” (2023-2031). Many of these goals, policies and programs are implemented through the Chapter 17.31 Affordable Housing Requirements of the Cotati Municipal Code (CMC).
On May 24, 2024, the City of Cotati held a housing workshop and proposed the concept of a Cotati Density Bonus, the intent of which was to create an option whereby project applicants could be granted additional residential density beyond the allowances of State density bonus law, in exchange for proposing a project design that is in keeping with the development goals and policies of the City of Cotati.
On June 14, 2024, the Planning Commission held a public hearing to consider proposed code changes to the City’s current Density Bonuses section of the CMC, the primary goal of which was to ensure compliance with state density bonus law, but which also included conceptual code language intended to create the “Cotati Density Bonus”. At this meeting the Planning Commission voted 4-0-1 (Commissioner Gilardi absent) to recommend the City Council adopt the draft ordinance.
On August 27, 2024, the City Council held a public hearing to consider the draft ordinance amending the CMC to both remain consistent with State Density Bonus Law and create a Cotati Density Bonus. After reviewing the draft ordinance, the City Council indicated support for the broader ordinance bringing the City into compliance with State law, but directed staff to remove the Cotati Density Bonus language, requesting a more robust discussion of the potential policy options for the Cotati Density Bonus be brought back before the Council for further review and consideration.
On October 7, 2024, the Planning Commission considered a resolution recommending that the City Council conducted the first reading of the draft ordinance amending the existing affordable housing policy and density bonus sections of the CMC, in keeping with the policy direction previously provided. After conducing the public hearing and considering the resolution, the Commission voted 5-0 to approve the resolution.
Analysis/Discussion
Land Use and Planning Considerations
Cotati Density Bonus
The concept of a Cotati Density Bonus builds on the past actions of the City Council creating a mechanism to provide additional residential density in exchange for a developer meeting codified expectations identified as high priority for the community. Previously, the Council has modified the CMC to allow up to double the base density for “cottage housing” projects as well as for certain projects qualifying for a “mixed-use density bonus”. These two Cotati specific density bonus options provide a mechanism allowing for additional density bonus units (up to 100%) above and beyond those available through state density bonus law (generally a maximum of 50%). The intent of these allowances is to create a greater incentive than what is provided through State density bonus law for projects to meet the development goals of Cotati. State density bonus allow developers to utilize waivers, concessions and incentives to avoid compliance with individual elements of a local jurisdictions land use policy, when those policies are seen as affecting the ability of the project to construct the density bonus units.
Notable in this discussion is that the City of Cotati “inclusionary housing requirement” (i.e. the number of affordable housing units required to be built within any “market rate” project) is 15 percent, which coincides with the state density bonus formula for projects to receive a density bonus. The number of density bonus units is based on the proposed number of “base” units and affordability levels set by a prescribed formula (15 percent moderate income=10 percent density bonus; 15 percent low income=27.5 percent density bonus; 15 percent very low income=50 percent density bonus) as laid out in the State Density Bonus Table (attached).
The local mandate for 15 percent of the units of any project to be affordable housing, has resulted in nearly all projects proposed (since these state law changes) being “density bonus” projects. Providing a local “density bonus” option beyond those identified in state law is intended to incentivize developers to meet the City’s development criteria, and to provide more flexibility in the affordable unit mixes being proposed in local projects. In their consideration of the Cotati Density Bonus Option, the City Council is seeking to balance making the local option certain enough to entice developers to utilize it, while also ensuring adequate community benefits are provided to justify granting the additional density.
To inform this consideration, the Council requested to have a facilitated discussion including the most common incentives and concessions required of density bonus projects; cost/benefits of making elements of the “Cotati Density Bonus” guaranteed vs. at the complete discretion of the Council; and defining the appropriate level of housing affordability required to qualify for a Cotati Density Bonus.
Common Density Bonus Incentives and Concessions
Height Limit
Public and Private Open Space Requirements
Architectural Design Flexibility (various Objective Design Guideline architectural criteria) Parking*
Lot Coverage*
*These standards were recently modified with adoption of the “Plex Housing Ordinance” and are not likely to remain as significant hinderances needing concessions, incentives or waivers.
Certainty of the Cotati Density Bonus and Affordability Levels Given that the State Density Bonus law is a guaranteed right to developers (and this process can grant any number of incentives, concessions and waivers to proponents of these projects) certainty in the approval of a Cotati Density Bonus, and flexibility akin to concessions, incentives and waivers may be beneficial to incentivize use of a Cotati specific density bonus program. One further consideration of this element is the recent implementation of AB 1287 which allows certain projects to receive up to 100% State density bonus via a density bonus “stacking” option summarized below.
AB 1287 (Jan. 2024)-Allows stacking of density bonus such that projects can get to 100% density bonus by providing 15 percent of the base units as very low income and 15 percent as moderate income. One of the most powerful combinations allowable under this law is providing 15 percent very low-income, entitling a 50 percent bonus; then adding an additional 15 percent of moderate units, allowing an additional 50 percent bonus [under AB 1287] for a total 100 percent density bonus. This recent change in State law now allows up to 100 percent density bonus for projects providing 30 percent of the base density units at very low- (15%) and moderate-income (15%) levels. This recent change in state law may motivate some consideration of incentivizing low-income unit development as well as introducing certainty into the granting of a Cotati Density Bonus and/or rights to incentives, concessions and waivers in this local program.
Draft Cotati Density Bonus
Finally, staff has provided some draft language for consideration to further facilitate the consideration and discussion of a Cotati Density Bonus. This language includes the use of the outstanding RHNA requirements as the basis for determining affordable housing income levels in a Cotati Density Bonus.
Cotati Density Bonus. For projects providing twenty-five percent of the proposed units as affordable housing at income levels spread across very low-, low- and moderate-income categories based on the City’s remaining Regional Housing Needs Allocation (RHNA) and/or the affordable housing priorities of the City; which are evenly distributed throughout the project site; and which comply with the City’s Objective Design Standards, the city council shall grant up to a one-hundred percent residential density bonus. Such projects shall be entitled to receive two incentives, concessions or waivers from development standards as defined by state density bonus law (in total).
Affordable Housing Requirements
Chapter 17.31 of the CMC identifies the specific criteria regarding implementation of below market rates homes in Cotati. The proposed ordinance would make changes to this section with the primary goal of providing clarifying language and implementing changes identified in the Housing Element and State density bonus law. Specific changes include utilizing the City’s RHNA as the primary determinant for unit affordability; identification of the 55-year deed restriction timeline; and incorporation of the City’s Local Preference Policy into the CMC. Other changes include identifying how rental units are to be “re-allocated” if a tenant’s income rises above the affordability levels of their unit and including email into the process affordable housing units are advertised and marketed to potential occupants. Staff requests City Council input on these changes to support the implementation of Housing Element programs.
General Plan Consistency
The amendments to CMC Title 17 in the proposed ordinance are consistent with and will further established goals, policies, and implementation programs of the General Plan, including the Housing Element, to expand housing opportunities, conserve resources, and use land appropriately.
Specifically, these amendments are consistent with and implement the following Housing Element policies and programs:
Program 1-8: Residential Building Decarbonization: Continue to permit and encourage mixed uses and higher densities on in-fill and vacant sites in Priority Development Areas (PDAs) with public serving facilities, such as medical clinics, schools, and grocery stores, to discourage sprawl and encourage short vehicle trips and/or alternative forms of transportation.
Program 3-1: Zoning for a Variety of Housing Types: Amend the City’s Zoning Code to use the maximum parking requirements in Government Code Section 65915 (State Density Bonus) for all multifamily projects without the need for any developer request by December 2023.
In addition, these amendments are consistent with and implement the following General Plan policies and programs:
Policy CON 2.1: Improve air quality through continuing to require a compact development pattern that focuses growth in and around existing urbanized areas, locating new housing near places of employment, encouraging alternative modes of transportation, and requiring projects to mitigate significant air quality impacts.
Policy LU 2.5: Locate medium and higher density housing within easy walking or bicycling distance of public facilities, services, transit, and major employers.
Policy LU 2.10: Encourage mixed-use, pedestrian-, and transit-oriented development, with a focus on the Hub and major corridors.
Staff Response: Staff finds that the proposed amendments to Chapter 17.32 Density Bonuses implement the above referenced Housing Element and General Plan policies in that additional density allowed in density bonus projects will increase incentives for in-fill development and provide additional residential units in close proximity to local amenities and employment opportunities; further support implementation of the density bonus parking allowances; support increased compact development and housing near local employment; incentivize use of alternative transportation methods; and further encourage mixed use and transit oriented development through clarifying the increased allowable density, including around the Hub and major transportation corridors.
Planning Commission Consideration
On October 7, 2024, the Planning Commission conducted a public hearing to consider the proposed changes to the Cotati Municipal Code. After considering the staff report, public input and elements raised during the commissioner’s discussion, the Planning Commission voted to unanimously support the proposed changes. In making their recommendation, the Commission recommended that the City Council:
1. Consider including limitations on the maximum height allowed to be constructed with any Cotati Density Bonus project.
2. Consider prioritizing health and safety elements when reviewing what concessions are to be included/not included with the Cotati Density Bonus.
3. Consider scheduling a one-year review of the Cotti Density Bonus Ordinance to evaluate the effectiveness of the adopted policies and make modifications to improve on their intent and to address any unforeseen issues and/or challenges.
Financial Considerations
Other than the staff time draft the ordinance, there are no direct impacts to the General Fund anticipated from the proposed ordinance.
Environmental Issues
The potential impacts of the proposed project were analyzed and addressed to a less-thansignificant level in the Cotati General Plan Update EIR (SCH# 2013082037), which was certified by the Cotati City Council on March 24, 2015, and the California Environmental Quality Act (CEQA) Guidelines Section 15183 allows a streamlined environmental review process for projects that are consistent with an existing zoning, community plan or general plan policies for which an Environmental Impact Report (EIR) was certified. As noted, the proposed project is consistent with the land use designations and densities established by the Cotati General Plan, for which an EIR was certified.