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Date Published: 04/26/2023 09:00 PM
ASSEMBLY BILL NO. 1287
AB-1287 Density Bonus Law: additional density bonus and incentives or concessions: California Coastal AMENDED IN ASSEMBLY APRIL 26, 2023
AMENDED IN ASSEMBLY APRIL 13, 2023
AMENDED IN ASSEMBLY MARCH 21, 2023
CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION
Introduced by Assembly Member Alvarez
February 16, 2023
An act to amend Section 65915 of the Government Code, relating to housing.
LEGISLATIVE COUNSEL'S DIGEST
AB 1287, as amended, Alvarez. Density Bonus Law: additional density bonus and incentives or concessions: California CoastalAct of 1976.
Existing law, referred to as the Density Bonus Law, requires a city or county to provide a developer that proposes a housingdevelopment within the city or county with a density bonus and other concessions or incentives or concessions, as specified, ifthe developer agrees to construct specified percentages of units for lower income households or very low income households,and meets other requirements.
This bill would require a city, county, or city and county to grant an additional density bonus, calculated as specified, when (1)an applicant proposes to construct a housing development that conforms to specified requirements, (2) the applicant agrees toinclude additional units affordable to very low income households or moderate income households, as specified, and (3) thehousing development provides 24% of the base density units to lower income households, conforms to specified requirementsand provides 15% of the base density units to very low income households, or conforms to specified requirements and provides44% of the total units to moderate-income units. The bill would require a city, county, or city and county to grant four incentivesor concessions for a project that includes at least 16% of the units for very low income households or at least 45% for personsand families of moderate income in a development in which the units are for sale. The bill would increase the incentives orconcessions for a project in which 100% of all units are for lower income households, as specified, from 4 to 5.
Existing law, the California Coastal Act of 1976 (act), regulates development, as defined, in the coastal zone, as defined, andrequires a new development to comply with specified requirements. The Density Bonus Law provides that its provisions do notsupersede or in any way alter or lessen the effect or application of the act, and requires that any density bonus, concessions,incentives, waivers or reductions of development standards, and parking ratios to which an applicant is entitled under theDensity Bonus Law be permitted in a manner consistent with the act.
This bill would provide that any density bonus, concessions, incentives, waivers or reductions of development standards, andparking ratios to which an applicant is entitled under the Density Bonus Law be permitted notwithstanding the act.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by thestate. Statutory provisions establish procedures for making that reimbursement.
HomeBill Information California LawPublicationsOther ResourcesMy SubscriptionsMy Favorites This bill would provide that no reimbursement is required by this act for a specified reason.Vote: majority Appropriation: no Fiscal Committee: yes Local Program: yes THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 65915 of the Government Code is amended to read:
65915. (a) (1) When an applicant seeks a density bonus for a housing development within, or for the donation of land forhousing within, the jurisdiction of a city, county, or city and county, that local government shall comply with this section. A city,county, or city and county shall adopt an ordinance that specifies how compliance with this section will be implemented. Exceptas otherwise provided in subdivision (s), failure to adopt an ordinance shall not relieve a city, county, or city and county fromcomplying with this section. (2) A local government shall not condition the submission, review, or approval of an application pursuant to this chapter onthe preparation of an additional report or study that is not otherwise required by state law, including this section. Thissubdivision does not prohibit a local government from requiring an applicant to provide reasonable documentation to establisheligibility for a requested density bonus, incentives or concessions, as described in subdivision (d), waivers or reductions ofdevelopment standards, as described in subdivision (e), and parking ratios, as described in subdivision (p). (3) In order to provide for the expeditious processing of a density bonus application, the local government shall do all of thefollowing:
(A) Adopt procedures and timelines for processing a density bonus application. (B) Provide a list of all documents and information required to be submitted with the density bonus application in order forthe density bonus application to be deemed complete. This list shall be consistent with this chapter. (C) Notify the applicant for a density bonus whether the application is complete in a manner consistent with the timelinesspecified in Section 65943. (D) (i) If the local government notifies the applicant that the application is deemed complete pursuant to subparagraph(C), provide the applicant with a determination as to the following matters:
(I) The amount of density bonus, calculated pursuant to subdivision (f), for which the applicant is eligible. (II) If the applicant requests a parking ratio pursuant to subdivision (p), the parking ratio for which the applicant iseligible. (III) If the applicant requests incentives or concessions pursuant to subdivision (d) or waivers or reductions ofdevelopment standards pursuant to subdivision (e), whether the applicant has provided adequate information for thelocal government to make a determination as to those incentives, concessions, or waivers or reductions ofdevelopment standards. (ii) Any determination required by this subparagraph shall be based on the development project at the time theapplication is deemed complete. The local government shall adjust the amount of density bonus and parking ratiosawarded pursuant to this section based on any changes to the project during the course of development. (b) (1) A city, county, or city and county shall grant one density bonus, the amount of which shall be as specified in subdivision(f), and, if requested by the applicant and consistent with the applicable requirements of this section, incentives or concessions,as described in subdivision (d), waivers or reductions of development standards, as described in subdivision (e), and parkingratios, as described in subdivision (p), if an applicant for a housing development seeks and agrees to construct a housingdevelopment, excluding any units permitted by the density bonus awarded pursuant to this section, that will contain at least anyone of the following:
(A) Ten percent of the total units of a housing development, including a shared housing building development, for rental orsale to lower income households, as defined in Section 50079.5 of the Health and Safety Code. (B) Five percent of the total units of a housing development, including a shared housing building development, for rental orsale to very low income households, as defined in Section 50105 of the Health and Safety Code. (C) A senior citizen housing development, as defined in Sections 51.3 and 51.12 of the Civil Code, or a mobilehome parkthat limits residency based on age requirements for housing for older persons pursuant to Section 798.76 or 799.5 of theCivil Code. For purposes of this subparagraph, “development” includes a shared housing building development. (D) Ten percent of the total dwelling units of a housing development are sold to persons and families of moderate income,as defined in Section 50093 of the Health and Safety Code, provided that all units in the development are offered to thepublic for purchase. (E) Ten percent of the total units of a housing development for transitional foster youth, as defined in Section 66025.9 ofthe Education Code, disabled veterans, as defined in Section 18541, or homeless persons, as defined in the federalMcKinney-Vento Homeless Assistance Act (42 U.S.C. Sec. 11301 et seq.). The units described in this subparagraph shall be subject to a recorded affordability restriction of 55 years and shall be provided at the same affordability level as very lowincome units. (F) (i) Twenty percent of the total units for lower income students in a student housing development that meets thefollowing requirements:
(I) All units in the student housing development will be used exclusively for undergraduate, graduate, or professionalstudents enrolled full time at an institution of higher education accredited by the Western Association of Schools andColleges or the Accrediting Commission for Community and Junior Colleges. In order to be eligible under thissubclause, the developer shall, as a condition of receiving a certificate of occupancy, provide evidence to the city,county, or city and county that the developer has entered into an operating agreement or master lease with one ormore institutions of higher education for the institution or institutions to occupy all units of the student housingdevelopment with students from that institution or institutions. An operating agreement or master lease entered intopursuant to this subclause is not violated or breached if, in any subsequent year, there are not sufficient studentsenrolled in an institution of higher education to fill all units in the student housing development. (II) The applicable 20-percent units will be used for lower income students. (III) The rent provided in the applicable units of the development for lower income students shall be calculated at 30percent of 65 percent of the area median income for a single-room occupancy unit type. (IV) The development will provide priority for the applicable affordable units for lower income students experiencinghomelessness. A homeless service provider, as defined in paragraph (3) of subdivision (e) of Section 103577 of theHealth and Safety Code, or institution of higher education that has knowledge of a person’s homeless status mayverify a person’s status as homeless for purposes of this subclause. (ii) For purposes of calculating a density bonus granted pursuant to this subparagraph, the term “unit” as used in thissection means one rental bed and its pro rata share of associated common area facilities. The units described in thissubparagraph shall be subject to a recorded affordability restriction of 55 years. (G) One hundred percent of all units in the development, including total units and density bonus units, but exclusive of amanager’s unit or units, are for lower income households, as defined by Section 50079.5 of the Health and Safety Code,except that up to 20 percent of the units in the development, including total units and density bonus units, may be formoderate-income households, as defined in Section 50053 of the Health and Safety Code. For purposes of thissubparagraph, “development” includes a shared housing building development. (2) For purposes of calculating the amount of the density bonus pursuant to subdivision (f), an applicant who requests adensity bonus pursuant to this subdivision shall elect whether the bonus shall be awarded on the basis of subparagraph (A),(B), (C), (D), (E), (F), or (G) of paragraph (1). (c) (1) (A) An applicant shall agree to, and the city, county, or city and county shall ensure, the continued affordability of allvery low and low-income rental units that qualified the applicant for the award of the density bonus for 55 years or a longerperiod of time if required by the construction or mortgage financing assistance program, mortgage insurance program, or rentalsubsidy program. (B) (i) Except as otherwise provided in clause (ii), rents for the lower income density bonus units shall be set at anaffordable rent, as defined in Section 50053 of the Health and Safety Code. (ii) For housing developments meeting the criteria of subparagraph (G) of paragraph (1) of subdivision (b), rents for allunits in the development, including both base density and density bonus units, shall be as follows:
(I) The rent for at least 20 percent of the units in the development shall be set at an affordable rent, as defined inSection 50053 of the Health and Safety Code. (II) The rent for the remaining units in the development shall be set at an amount consistent with the maximum rentlevels for lower income households, as those rents and incomes are determined by the California Tax CreditAllocation Committee. (2) (A) An applicant shall agree to ensure, and the city, county, or city and county shall ensure, that a for-sale unit thatqualified the applicant for the award of the density bonus meets either of the following conditions:
(i) The unit is initially occupied by a person or family of very low, low, or moderate income, as required, and it is offeredat an affordable housing cost, as that cost is defined in Section 50052.5 of the Health and Safety Code and is subject toan equity sharing agreement. (ii) The unit is purchased by a qualified nonprofit housing corporation pursuant to a recorded contract that satisfies all ofthe requirements specified in paragraph (10) of subdivision (a) of Section 402.1 of the Revenue and Taxation Code andthat includes all of the following:
(I) A repurchase option that requires a subsequent purchaser of the property that desires to resell or convey theproperty to offer the qualified nonprofit corporation the right to repurchase the property prior to selling or conveyingthat property to any other purchaser. (II) An equity sharing agreement.
(III) Affordability restrictions on the sale and conveyance of the property that ensure that the property will bepreserved for lower income housing for at least 45 years for owner-occupied housing units and will be sold or resoldonly to persons or families of very low, low, or moderate income, as defined in Section 50052.5 of the Health andSafety Code. (B) For purposes of this paragraph, a “qualified nonprofit housing corporation” is a nonprofit housing corporation organizedpursuant to Section 501(c)(3) of the Internal Revenue Code that has received a welfare exemption under Section 214.15 ofthe Revenue and Taxation Code for properties intended to be sold to low-income families who participate in a special no-interest loan program. (C) The local government shall enforce an equity sharing agreement required pursuant to clause (i) or (ii) of subparagraph(A), unless it is in conflict with the requirements of another public funding source or law or may defer to the recaptureprovisions of the public funding source. The following apply to the equity sharing agreement:
(i) Upon resale, the seller of the unit shall retain the value of any improvements, the downpayment, and the seller’sproportionate share of appreciation. (ii) Except as provided in clause (v), the local government shall recapture any initial subsidy, as defined in clause (iii),and its proportionate share of appreciation, as defined in clause (iv), which amount shall be used within five years forany of the purposes described in subdivision (e) of Section 33334.2 of the Health and Safety Code that promote homeownership. (iii) For purposes of this subdivision, the local government’s initial subsidy shall be equal to the fair market value of thehome at the time of initial sale minus the initial sale price to the moderate-income household, plus the amount of anydownpayment assistance or mortgage assistance. If upon resale the market value is lower than the initial market value,then the value at the time of the resale shall be used as the initial market value. (iv) For purposes of this subdivision, the local government’s proportionate share of appreciation shall be equal to theratio of the local government’s initial subsidy to the fair market value of the home at the time of initial sale. (v) If the unit is purchased or developed by a qualified nonprofit housing corporation pursuant to clause (ii) ofsubparagraph (A) the local government may enter into a contract with the qualified nonprofit housing corporation underwhich the qualified nonprofit housing corporation would recapture any initial subsidy and its proportionate share ofappreciation if the qualified nonprofit housing corporation is required to use 100 percent of the proceeds to promotehome ownership for lower income households as defined by Health and Safety Code Section 50079.5 within thejurisdiction of the local government. (3) (A) An applicant shall be ineligible for a density bonus or any other incentives or concessions under this section if thehousing development is proposed on any property that includes a parcel or parcels on which rental dwelling units are or, if thedwelling units have been vacated or demolished in the five-year period preceding the application, have been subject to arecorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of lower or very lowincome; subject to any other form of rent or price control through a public entity’s valid exercise of its police power; oroccupied by lower or very low income households, unless the proposed housing development replaces those units, and eitherof the following applies:
(i) The proposed housing development, inclusive of the units replaced pursuant to this paragraph, contains affordableunits at the percentages set forth in subdivision (b). (ii) Each unit in the development, exclusive of a manager’s unit or units, is affordable to, and occupied by, either a loweror very low income household. (B) For the purposes of this paragraph, “replace” shall mean either of the following:
(i) If any dwelling units described in subparagraph (A) are occupied on the date of application, the proposed housingdevelopment shall provide at least the same number of units of equivalent size to be made available at affordable rentor affordable housing cost to, and occupied by, persons and families in the same or lower income category as thosehouseholds in occupancy. If the income category of the household in occupancy is not known, it shall be rebuttablypresumed that lower income renter households occupied these units in the same proportion of lower income renterhouseholds to all renter households within the jurisdiction, as determined by the most recently available data from theUnited States Department of Housing and Urban Development’s Comprehensive Housing Affordability Strategydatabase. For unoccupied dwelling units described in subparagraph (A) in a development with occupied units, theproposed housing development shall provide units of equivalent size to be made available at affordable rent oraffordable housing cost to, and occupied by, persons and families in the same or lower income category as the lasthousehold in occupancy. If the income category of the last household in occupancy is not known, it shall be rebuttablypresumed that lower income renter households occupied these units in the same proportion of lower income renterhouseholds to all renter households within the jurisdiction, as determined by the most recently available data from theUnited States Department of Housing and Urban Development’s Comprehensive Housing Affordability Strategydatabase. All replacement calculations resulting in fractional units shall be rounded up to the next whole number. If the replacement units will be rental dwelling units, these units shall be subject to a recorded affordability restriction for atleast 55 years. If the proposed development is for-sale units, the units replaced shall be subject to paragraph (2). (ii) If all dwelling units described in subparagraph (A) have been vacated or demolished within the five-year periodpreceding the application, the proposed housing development shall provide at least the same number of units ofequivalent size as existed at the highpoint of those units in the five-year period preceding the application to be madeavailable at affordable rent or affordable housing cost to, and occupied by, persons and families in the same or lowerincome category as those persons and families in occupancy at that time, if known. If the incomes of the persons andfamilies in occupancy at the highpoint is not known, it shall be rebuttably presumed that low-income and very lowincome renter households occupied these units in the same proportion of low-income and very low income renterhouseholds to all renter households within the jurisdiction, as determined by the most recently available data from theUnited States Department of Housing and Urban Development’s Comprehensive Housing Affordability Strategydatabase. All replacement calculations resulting in fractional units shall be rounded up to the next whole number. If thereplacement units will be rental dwelling units, these units shall be subject to a recorded affordability restriction for atleast 55 years. If the proposed development is for-sale units, the units replaced shall be subject to paragraph (2). (C) Notwithstanding subparagraph (B), for any dwelling unit described in subparagraph (A) that is or was, within the five-year period preceding the application, subject to a form of rent or price control through a local government’s valid exerciseof its police power and that is or was occupied by persons or families above lower income, the city, county, or city andcounty may do either of the following:
(i) Require that the replacement units be made available at affordable rent or affordable housing cost to, and occupiedby, low-income persons or families. If the replacement units will be rental dwelling units, these units shall be subject toa recorded affordability restriction for at least 55 years. If the proposed development is for-sale units, the units replacedshall be subject to paragraph (2). (ii) Require that the units be replaced in compliance with the jurisdiction’s rent or price control ordinance, provided thateach unit described in subparagraph (A) is replaced. Unless otherwise required by the jurisdiction’s rent or price controlordinance, these units shall not be subject to a recorded affordability restriction. (D) For purposes of this paragraph, “equivalent size” means that the replacement units contain at least the same totalnumber of bedrooms as the units being replaced. (E) Subparagraph (A) does not apply to an applicant seeking a density bonus for a proposed housing development if theapplicant’s application was submitted to, or processed by, a city, county, or city and county before January 1, 2015. (d) (1) An applicant for a density bonus pursuant to subdivision (b) may submit to a city, county, or city and county a proposalfor the specific incentives or concessions that the applicant requests pursuant to this section, and may request a meeting withthe city, county, or city and county. The city, county, or city and county shall grant the concession or incentive requested by theapplicant unless the city, county, or city and county makes a written finding, based upon substantial evidence, of any of thefollowing:
(A) The concession or incentive does not result in identifiable and actual cost reductions, consistent with subdivision (k), toprovide for affordable housing costs, as defined in Section 50052.5 of the Health and Safety Code, or for rents for thetargeted units to be set as specified in subdivision (c). (B) The concession or incentive would have a specific, adverse impact, as defined in paragraph (2) of subdivision (d) ofSection 65589.5, upon public health and safety or on any real property that is listed in the California Register of HistoricalResources and for which there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact withoutrendering the development unaffordable to low-income and moderate-income households. (C) The concession or incentive would be contrary to state or federal law. (2) The applicant shall receive the following number of incentives or concessions:
(A) One incentive or concession for projects that include at least 10 percent of the total units for lower income households,at least 5 percent for very low income households, or at least 10 percent for persons and families of moderate income in adevelopment in which the units are for sale. (B) Two incentives or concessions for projects that include at least 17 percent of the total units for lower incomehouseholds, at least 10 percent for very low income households, or at least 20 percent for persons and families ofmoderate income in a development in which the units are for sale. (C) Three incentives or concessions for projects that include at least 24 percent of the total units for lower incomehouseholds, at least 15 percent for very low income households, or at least 30 percent for persons and families ofmoderate income in a development in which the units are for sale. (D) Five incentives or concessions for a project meeting the criteria of subparagraph (G) of paragraph (1) of subdivision(b). If the project is located within one-half mile of a major transit stop or is located in a very low vehicle travel area in adesignated county, the applicant shall also receive a height increase of up to three additional stories, or 33 feet. (E) One incentive or concession for projects that include at least 20 percent of the total units for lower income students ina student housing development. (F) Four incentives or concessions for projects that include at least 16 percent of the units for very low income householdsor at least 45 percent for persons and families of moderate income in a development in which the units are for sale. (3) The applicant may initiate judicial proceedings if the city, county, or city and county refuses to grant a requested densitybonus, incentive, or concession. If a court finds that the refusal to grant a requested density bonus, incentive, or concession isin violation of this section, the court shall award the plaintiff reasonable attorney’s fees and costs of suit. This subdivision shallnot be interpreted to require a local government to grant an incentive or concession that has a specific, adverse impact, asdefined in paragraph (2) of subdivision (d) of Section 65589.5, upon health or safety, and for which there is no feasiblemethod to satisfactorily mitigate or avoid the specific, adverse impact. This subdivision shall not be interpreted to require alocal government to grant an incentive or concession that would have an adverse impact on any real property that is listed inthe California Register of Historical Resources. The city, county, or city and county shall establish procedures for carrying outthis section that shall include legislative body approval of the means of compliance with this section. (4) The city, county, or city and county shall bear the burden of proof for the denial of a requested concession or incentive. (e) (1) In no case may a city, county, or city and county apply any development standard that will have the effect of physicallyprecluding the construction of a development meeting the criteria of subdivision (b) at the densities or with the concessions orincentives permitted by this section. Subject to paragraph (3), an applicant may submit to a city, county, or city and county aproposal for the waiver or reduction of development standards that will have the effect of physically precluding the constructionof a development meeting the criteria of subdivision (b) at the densities or with the concessions or incentives permitted underthis section, and may request a meeting with the city, county, or city and county. If a court finds that the refusal to grant awaiver or reduction of development standards is in violation of this section, the court shall award the plaintiff reasonableattorney’s fees and costs of suit. This subdivision shall not be interpreted to require a local government to waive or reducedevelopment standards if the waiver or reduction would have a specific, adverse impact, as defined in paragraph (2) ofsubdivision (d) of Section 65589.5, upon health or safety, and for which there is no feasible method to satisfactorily mitigate oravoid the specific, adverse impact. This subdivision shall not be interpreted to require a local government to waive or reducedevelopment standards that would have an adverse impact on any real property that is listed in the California Register ofHistorical Resources, or to grant any waiver or reduction that would be contrary to state or federal law. (2) A proposal for the waiver or reduction of development standards pursuant to this subdivision shall neither reduce norincrease the number of incentives or concessions to which the applicant is entitled pursuant to subdivision (d). (3) A housing development that receives a waiver from any maximum controls on density pursuant to clause (ii) ofsubparagraph (D) of paragraph (3) of subdivision (f) shall only be eligible for a waiver or reduction of development standardsas provided in subparagraph (D) of paragraph (2) of subdivision (d) and clause (ii) of subparagraph (D) of paragraph (3) ofsubdivision (f), unless the city, county, or city and county agrees to additional waivers or reductions of developmentstandards. (f) For the purposes of this chapter, “density bonus” means a density increase over the otherwise maximum allowable grossresidential density as of the date of application by the applicant to the city, county, or city and county, or, if elected by theapplicant, a lesser percentage of density increase, including, but not limited to, no increase in density. The amount of densityincrease to which the applicant is entitled shall vary according to the amount by which the percentage of affordable housingunits exceeds the percentage established in subdivision (b). (1) For housing developments meeting the criteria of subparagraph (A) of paragraph (1) of subdivision (b), the density bonusshall be calculated as follows:
Percentage Low-Income Units Percentage Density Bonus
10 20
11 21.5
12 23
13 24.5
14 26
15 27.5
16 29
17 30.5
18 32
19 33.5
20 35
21 38.75
22 42.5
23 46.25
24 50
(2) For housing developments meeting the criteria of subparagraph (B) of paragraph (1) of subdivision (b), the density bonusshall be calculated as follows:
Percentage Very Low Income Units Percentage Density Bonus 5 20
6 22.5
7 25
8 27.5
9 30
10 32.5
11 35
12 38.75
13 42.5
14 46.25
15 50
(3) (A) For housing developments meeting the criteria of subparagraph (C) of paragraph (1) of subdivision (b), the densitybonus shall be 20 percent of the number of senior housing units. (B) For housing developments meeting the criteria of subparagraph (E) of paragraph (1) of subdivision (b), the densitybonus shall be 20 percent of the number of the type of units giving rise to a density bonus under that subparagraph. (C) For housing developments meeting the criteria of subparagraph (F) of paragraph (1) of subdivision (b), the densitybonus shall be 35 percent of the student housing units. (D) For housing developments meeting the criteria of subparagraph (G) of paragraph (1) of subdivision (b), the followingshall apply:
(i) Except as otherwise provided in clauses (ii) and (iii), the density bonus shall be 80 percent of the number of units forlower income households. (ii) If the housing development is located within one-half mile of a major transit stop, the city, county, or city and countyshall not impose any maximum controls on density. (iii) If the housing development is located in a very low vehicle travel area within a designated county, the city, county,or city and county shall not impose any maximum controls on density. (4) For housing developments meeting the criteria of subparagraph (D) of paragraph (1) of subdivision (b), the density bonusshall be calculated as follows:
Percentage Moderate-Income Units Percentage Density Bonus 10 5
11 6
12 7
13 8
14 9
15 10
16 11
17 12
18 13
19 14
20 15
21 16
22 17
23 18
24 19
25 20
26 21
27 22
28 23
29 24
30 25
31 26
32 27
33 28
34 29
35 30
36 31
37 32
38 33
39 34
40 35
41 38.75
42 42.5
43 46.25
44 50
(5) All density calculations resulting in fractional units shall be rounded up to the next whole number. The granting of adensity bonus shall not require, or be interpreted, in and of itself, to require a general plan amendment, local coastal planamendment, zoning change, or other discretionary approval. (g) (1) When an applicant for a tentative subdivision map, parcel map, or other residential development approval donates landto a city, county, or city and county in accordance with this subdivision, the applicant shall be entitled to a 15-percent increaseabove the otherwise maximum allowable residential density for the entire development, as follows:
Percentage Very Low Income Percentage Density Bonus
10 15
11 16
12 17
13 18
14 19
15 20
16 21
17 22
18 23
19 24
20 25
21 26
22 27
23 28
24 29
25 30
26 31
27 32
28 33
29 34
30 35
(2) This increase shall be in addition to any increase in density mandated by subdivision (b), up to a maximum combinedmandated density increase of 35 percent if an applicant seeks an increase pursuant to both this subdivision and subdivision(b). All density calculations resulting in fractional units shall be rounded up to the next whole number. Nothing in thissubdivision shall be construed to enlarge or diminish the authority of a city, county, or city and county to require a developerto donate land as a condition of development. An applicant shall be eligible for the increased density bonus described in thissubdivision if all of the following conditions are met:
(A) The applicant donates and transfers the land no later than the date of approval of the final subdivision map, parcelmap, or residential development application. (B) The developable acreage and zoning classification of the land being transferred are sufficient to permit construction ofunits affordable to very low income households in an amount not less than 10 percent of the number of residential units ofthe proposed development. (C) The transferred land is at least one acre in size or of sufficient size to permit development of at least 40 units, has theappropriate general plan designation, is appropriately zoned with appropriate development standards for development atthe density described in paragraph (3) of subdivision (c) of Section 65583.2, and is or will be served by adequate publicfacilities and infrastructure. (D) The transferred land shall have all of the permits and approvals, other than building permits, necessary for thedevelopment of the very low income housing units on the transferred land, not later than the date of approval of the finalsubdivision map, parcel map, or residential development application, except that the local government may subject theproposed development to subsequent design review to the extent authorized by subdivision (i) of Section 65583.2 if thedesign is not reviewed by the local government before the time of transfer. (E) The transferred land and the affordable units shall be subject to a deed restriction ensuring continued affordability ofthe units consistent with paragraphs (1) and (2) of subdivision (c), which shall be recorded on the property at the time ofthe transfer. (F) The land is transferred to the local agency or to a housing developer approved by the local agency. The local agencymay require the applicant to identify and transfer the land to the developer. (G) The transferred land shall be within the boundary of the proposed development or, if the local agency agrees, withinone-quarter mile of the boundary of the proposed development. (H) A proposed source of funding for the very low income units shall be identified not later than the date of approval of thefinal subdivision map, parcel map, or residential development application. (h) (1) When an applicant proposes to construct a housing development that conforms to the requirements of subdivision (b)and includes a childcare facility that will be located on the premises of, as part of, or adjacent to, the project, the city, county, orcity and county shall grant either of the following:
(A) An additional density bonus that is an amount of square feet of residential space that is equal to or greater than theamount of square feet in the childcare facility. (B) An additional concession or incentive that contributes significantly to the economic feasibility of the construction of thechildcare facility. (2) The city, county, or city and county shall require, as a condition of approving the housing development, that the followingoccur:
(A) The childcare facility shall remain in operation for a period of time that is as long as or longer than the period of timeduring which the density bonus units are required to remain affordable pursuant to subdivision (c). (B) Of the children who attend the childcare facility, the children of very low income households, lower income households,or families of moderate income shall equal a percentage that is equal to or greater than the percentage of dwelling unitsthat are required for very low income households, lower income households, or families of moderate income pursuant tosubdivision (b). (3) Notwithstanding any requirement of this subdivision, a city, county, or city and county shall not be required to provide adensity bonus or concession for a childcare facility if it finds, based upon substantial evidence, that the community hasadequate childcare facilities. (4) “Childcare facility,” as used in this section, means a child daycare facility other than a family daycare home, including, butnot limited to, infant centers, preschools, extended daycare facilities, and schoolage childcare centers. (i) “Housing development,” as used in this section, means a development project for five or more residential units, includingmixed-use developments. For the purposes of this section, “housing development” also includes a subdivision or commoninterest development, as defined in Section 4100 of the Civil Code, approved by a city, county, or city and county and consistsof residential units or unimproved residential lots and either a project to substantially rehabilitate and convert an existingcommercial building to residential use or the substantial rehabilitation of an existing multifamily dwelling, as defined insubdivision (d) of Section 65863.4, where the result of the rehabilitation would be a net increase in available residential units.For the purpose of calculating a density bonus, the residential units shall be on contiguous sites that are the subject of onedevelopment application, but do not have to be based upon individual subdivision maps or parcels. The density bonus shall bepermitted in geographic areas of the housing development other than the areas where the units for the lower incomehouseholds are located. (j) (1) The granting of a concession or incentive shall not require or be interpreted, in and of itself, to require a general planamendment, local coastal plan amendment, zoning change, study, or other discretionary approval. For purposes of thissubdivision, “study” does not include reasonable documentation to establish eligibility for the concession or incentive or todemonstrate that the incentive or concession meets the definition set forth in subdivision (k). This provision is declaratory ofexisting law. (2) Except as provided in subdivisions (d) and (e), the granting of a density bonus shall not require or be interpreted torequire the waiver of a local ordinance or provisions of a local ordinance unrelated to development standards. (k) For the purposes of this chapter, concession or incentive means any of the following:
(1) A reduction in site development standards or a modification of zoning code requirements or architectural designrequirements that exceed the minimum building standards approved by the California Building Standards Commission asprovided in Part 2.5 (commencing with Section 18901) of Division 13 of the Health and Safety Code, including, but not limitedto, a reduction in setback and square footage requirements and in the ratio of vehicular parking spaces that would otherwisebe required that results in identifiable and actual cost reductions, to provide for affordable housing costs, as defined in Section50052.5 of the Health and Safety Code, or for rents for the targeted units to be set as specified in subdivision (c). (2) Approval of mixed-use zoning in conjunction with the housing project if commercial, office, industrial, or other land useswill reduce the cost of the housing development and if the commercial, office, industrial, or other land uses are compatiblewith the housing project and the existing or planned development in the area where the proposed housing project will belocated. (3) Other regulatory incentives or concessions proposed by the developer or the city, county, or city and county that result inidentifiable and actual cost reductions to provide for affordable housing costs, as defined in Section 50052.5 of the Health andSafety Code, or for rents for the targeted units to be set as specified in subdivision (c). (l) Subdivision (k) does not limit or require the provision of direct financial incentives for the housing development, including theprovision of publicly owned land, by the city, county, or city and county, or the waiver of fees or dedication requirements. (m) This section does not supersede or in any way alter or lessen the effect or application of the California Coastal Act of 1976(Division 20 (commencing with Section 30000) of the Public Resources Code). Any density bonus, concessions, incentives,waivers or reductions of development standards, and parking ratios to which an the applicant is entitled under this section shallbe permitted notwithstanding the California Coastal Act of 1976 (Division in a manner that is consistent with this section andDivision 20 (commencing with Section 30000) of the Public Resources Code). Code. (n) If permitted by local ordinance, nothing in this section shall be construed to prohibit a city, county, or city and county fromgranting a density bonus greater than what is described in this section for a development that meets the requirements of thissection or from granting a proportionately lower density bonus than what is required by this section for developments that donot meet the requirements of this section. (o) For purposes of this section, the following definitions shall apply:
(1) “Designated county” includes the Counties of Alameda, Contra Costa, Los Angeles, Marin, Napa, Orange, Riverside,Sacramento, San Bernardino, San Diego, San Mateo, Santa Barbara, Santa Clara, Solano, Sonoma, and Ventura, and the Cityand County of San Francisco. (2) “Development standard” includes a site or construction condition, including, but not limited to, a height limitation, asetback requirement, a floor area ratio, an onsite open-space requirement, a minimum lot area per unit requirement, or aparking ratio that applies to a residential development pursuant to any ordinance, general plan element, specific plan, charter,or other local condition, law, policy, resolution, or regulation. (3) “Located within one-half mile of a major transit stop” means that any point on a proposed development, for which anapplicant seeks a density bonus, other incentives or concessions, waivers or reductions of development standards, or avehicular parking ratio pursuant to this section, is within one-half mile of any point on the property on which a major transitstop is located, including any parking lot owned by the transit authority or other local agency operating the major transit stop. (4) “Lower income student” means a student who has a household income and asset level that does not exceed the level forCal Grant A or Cal Grant B award recipients as set forth in paragraph (1) of subdivision (k) of Section 69432.7 of theEducation Code. The eligibility of a student to occupy a unit for lower income students under this section shall be verified by an affidavit, award letter, or letter of eligibility provided by the institution of higher education in which the student is enrolledor by the California Student Aid Commission that the student receives or is eligible for financial aid, including an institutionalgrant or fee waiver from the college or university, the California Student Aid Commission, or the federal government. (5) “Major transit stop” has the same meaning as defined in subdivision (b) of Section 21155 of the Public Resources Code. (6) “Maximum allowable residential density” or “base density” means the maximum number of units allowed under the zoningordinance, specific plan, or land use element of the general plan, or, if a range of density is permitted, means the maximumnumber of units allowed by the specific zoning range, specific plan, or land use element of the general plan applicable to theproject. If the density allowed under the zoning ordinance is inconsistent with the density allowed under the land use elementof the general plan or specific plan, the greater shall prevail. Density shall be determined using dwelling units per acre.However, if the applicable zoning ordinance, specific plan, or land use element of the general plan does not provide a dwelling-units-per-acre standard for density, then the local agency shall calculate the number of units by:
(A) Estimating the realistic development capacity of the site based on the objective development standards applicable tothe project, including, but not limited to, floor area ratio, site coverage, maximum building height and number of stories,building setbacks and stepbacks, public and private open-space requirements, minimum percentage or square footage ofany nonresidential component, and parking requirements, unless not required for the base project. Parking requirementsshall include considerations regarding number of spaces, location, design, type, and circulation. A developer may provide abase density study and the local agency shall accept it, provided that it includes all applicable objective developmentstandards. (B) Maintaining the same average unit size and other project details relevant to the base density study, excepting thosethat may be modified by waiver or concession to accommodate the bonus units, in the proposed project as in the study. (7) (A) (i) “Shared housing building” means a residential or mixed-use structure, with five or more shared housing units andone or more common kitchens and dining areas designed for permanent residence of more than 30 days by its tenants. Thekitchens and dining areas within the shared housing building shall be able to adequately accommodate all residents. If a localordinance further restricts the attributes of a shared housing building beyond the requirements established in this section, thelocal definition shall apply to the extent that it does not conflict with the requirements of this section. (ii) A “shared housing building” may include other dwelling units that are not shared housing units, provided that thosedwelling units do not occupy more than 25 percent of the floor area of the shared housing building. A shared housingbuilding may include 100 percent shared housing units. (B) “Shared housing unit” means one or more habitable rooms, not within another dwelling unit, that includes a bathroom,sink, refrigerator, and microwave, is used for permanent residence, that meets the “minimum room area” specified inSection R304 of the California Residential Code (Part 2.5 of Title 24 of the California Code of Regulations), and complieswith the definition of “guestroom” in Section R202 of the California Residential Code. If a local ordinance further restrictsthe attributes of a shared housing building beyond the requirements established in this section, the local definition shallapply to the extent that it does not conflict with the requirements of this section. (8) (A) “Total units” or “total dwelling units” means a calculation of the number of units that:
(i) Excludes a unit added by a density bonus awarded pursuant to this section or any local law granting a greaterdensity bonus. (ii) Includes a unit designated to satisfy an inclusionary zoning requirement of a city, county, or city and county. (B) For purposes of calculating a density bonus granted pursuant to this section for a shared housing building, “unit”means one shared housing unit and its pro rata share of associated common area facilities. (9) “Very low vehicle travel area” means an urbanized area, as designated by the United States Census Bureau, where theexisting residential development generates vehicle miles traveled per capita that is below 85 percent of either regional vehiclemiles traveled per capita or city vehicle miles traveled per capita. For purposes of this paragraph, “area” may include a travelanalysis zone, hexagon, or grid. For the purposes of determining “regional vehicle miles traveled per capita” pursuant to thisparagraph, a “region” is the entirety of incorporated and unincorporated areas governed by a multicounty or single-countymetropolitan planning organization, or the entirety of the incorporated and unincorporated areas of an individual county thatis not part of a metropolitan planning organization. (p) (1) Except as provided in paragraphs (2), (3), and (4), upon the request of the developer, a city, county, or city and countyshall not require a vehicular parking ratio, inclusive of parking for persons with a disability and guests, of a developmentmeeting the criteria of subdivisions (b) and (c), that exceeds the following ratios:
(A) Zero to one bedroom: one onsite parking space.
(B) Two to three bedrooms: one and one-half onsite parking spaces. (C) Four and more bedrooms: two and one-half parking spaces. (2) (A) Notwithstanding paragraph (1), if a development includes at least 20 percent low-income units for housingdevelopments meeting the criteria of subparagraph (A) of paragraph (1) of subdivision (b) or at least 11 percent very low income units for housing developments meeting the criteria of subparagraph (B) of paragraph (1) of subdivision (b), is locatedwithin one-half mile of a major transit stop, and there is unobstructed access to the major transit stop from the development,then, upon the request of the developer, a city, county, or city and county shall not impose a vehicular parking ratio, inclusiveof parking for persons with a disability and guests, that exceeds 0.5 spaces per unit. Notwithstanding paragraph (1), if adevelopment includes at least 40 percent moderate-income units for housing developments meeting the criteria ofsubparagraph (D) of paragraph (1) of subdivision (b), is located within one-half mile of a major transit stop, as defined insubdivision (b) of Section 21155 of the Public Resources Code, and the residents of the development have unobstructedaccess to the major transit stop from the development then, upon the request of the developer, a city, county, or city andcounty shall not impose a vehicular parking ratio, inclusive of parking for persons with a disability and guests, that exceeds0.5 spaces per bedroom. (B) For purposes of this subdivision, “unobstructed access to the major transit stop” means a resident is able to access themajor transit stop without encountering natural or constructed impediments. For purposes of this subparagraph, “natural orconstructed impediments” includes, but is not limited to, freeways, rivers, mountains, and bodies of water, but does notinclude residential structures, shopping centers, parking lots, or rails used for transit. (3) Notwithstanding paragraph (1), if a development meets the criteria of subparagraph (G) of paragraph (1) of subdivision(b), then, upon the request of the developer, a city, county, or city and county shall not impose vehicular parking standards ifthe development meets any of the following criteria:
(A) The development is located within one-half mile of a major transit stop and there is unobstructed access to the majortransit stop from the development. (B) The development is a for-rent housing development for individuals who are 55 years of age or older that complies withSections 51.2 and 51.3 of the Civil Code and the development has either paratransit service or unobstructed access, withinone-half mile, to fixed bus route service that operates at least eight times per day. (C) The development is either a special needs housing development, as defined in Section 51312 of the Health and SafetyCode, or a supportive housing development, as defined in Section 50675.14 of the Health and Safety Code. A developmentthat is a special needs housing development shall have either paratransit service or unobstructed access, within one-halfmile, to fixed bus route service that operates at least eight times per day. (4) If the total number of parking spaces required for a development is other than a whole number, the number shall berounded up to the next whole number. For purposes of this subdivision, a development may provide onsite parking throughtandem parking or uncovered parking, but not through onstreet parking. (5) This subdivision shall apply to a development that meets the requirements of subdivisions (b) and (c), but only at therequest of the applicant. An applicant may request parking incentives or concessions beyond those provided in this subdivisionpursuant to subdivision (d). (6) This subdivision does not preclude a city, county, or city and county from reducing or eliminating a parking requirementfor development projects of any type in any location. (7) Notwithstanding paragraphs (2) and (3), if a city, county, city and county, or an independent consultant has conducted anareawide or jurisdictionwide parking study in the last seven years, then the city, county, or city and county may impose ahigher vehicular parking ratio not to exceed the ratio described in paragraph (1), based upon substantial evidence found inthe parking study, that includes, but is not limited to, an analysis of parking availability, differing levels of transit access,walkability access to transit services, the potential for shared parking, the effect of parking requirements on the cost ofmarket-rate and subsidized developments, and the lower rates of car ownership for low-income and very low incomeindividuals, including seniors and special needs individuals. The city, county, or city and county shall pay the costs of any newstudy. The city, county, or city and county shall make findings, based on a parking study completed in conformity with thisparagraph, supporting the need for the higher parking ratio. (8) A request pursuant to this subdivision shall neither reduce nor increase the number of incentives or concessions to whichthe applicant is entitled pursuant to subdivision (d). (q) Each component of any density calculation, including base density and bonus density, resulting in fractional units shall beseparately rounded up to the next whole number. The Legislature finds and declares that this provision is declaratory of existinglaw. (r) This chapter shall be interpreted liberally in favor of producing the maximum number of total housing units. (s) Notwithstanding any other law, if a city, including a charter city, county, or city and county has adopted an ordinance or ahousing program, or both an ordinance and a housing program, that incentivizes the development of affordable housing thatallows for density bonuses that exceed the density bonuses required by the version of this section effective through December31, 2020, that city, county, or city and county is not required to amend or otherwise update its ordinance or correspondingaffordable housing incentive program to comply with the amendments made to this section by the act adding this subdivision,and is exempt from complying with the incentive and concession calculation amendments made to this section by the act addingthis subdivision as set forth in subdivision (d), particularly subparagraphs (B) and (C) of paragraph (2) of that subdivision, andthe amendments made to the density tables under subdivision (f). (t) When an applicant proposes to construct a housing development that conforms to the requirements of subparagraph (A) or(B) of paragraph (1) of subdivision (b) that is a shared housing building, the city, county, or city and county shall not requireany minimum unit size requirements or minimum bedroom requirements that are in conflict with paragraph (7) of subdivision(o). (u) (1) The Legislature finds and declares that the intent behind the Density Bonus Law is to allow public entities to reduce oreven eliminate subsidies for a particular project by allowing a developer to include more total units in a project than wouldotherwise be allowed by the local zoning ordinance in exchange for affordable units. It further reaffirms that the intent is tocover at least some of the financing gap of affordable housing with regulatory incentives, rather than additional public subsidy. (2) It is therefore the intent of the Legislature to make modifications to the Density Bonus Law by the act adding thissubdivision to further incentivize the construction of very low, low-, and moderate-income housing units. It is further theintent of the Legislature in making these modifications to the Density Bonus Law to ensure that any additional benefitsconferred upon a developer are balanced with the receipt of a public benefit in the form of adequate levels of affordablehousing. The Legislature further intends that these modifications will ensure that the Density Bonus Law creates incentives forthe construction of more housing across all areas of the state. (v) (1) A city, county, or city and county shall grant an additional density bonus calculated pursuant to paragraph (2) when anapplicant proposes to construct a housing development that conforms to the requirements of subparagraph (A) of paragraph (1)of subdivision (b), agrees to include additional units affordable to very low income households or moderate income households,and meets any of the following requirements:
(A) The housing development provides 24 percent of the base density units to lower income households. (B) The housing development conforms to the requirements of subparagraph (B) of paragraph (1) of subdivision (b) andprovides 15 percent of the base density units to very low income households. (C) The housing development conforms to the requirements of subparagraph (D) of paragraph (1) of subdivision (b) andprovides 44 percent of the total units to moderate-income units. (2) A city, county, or city and county shall grant an additional density bonus for a housing development that meets therequirements of paragraph (1), calculated as follows:
Percentage Very Low Income Units Percentage Density Bonus 5 20
6 23.75
7 27.5
8 31.25
9 35
10 38.75
Percentage Moderate-Income Units Percentage Density Bonus 5 20
6 22.5
7 25
8 27.5
9 30
10 32.5
11 35
12 38.75
13 42.5
14 46.25
15 50
(3) The increase required by paragraphs (1) and (2) shall be in addition to any increase in density granted by subdivision (b).SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because alocal agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the programor level of service mandated by this act, within the meaning of Section 17556 of the Government Code.