City of Simi Valley
Staff Report
July 27,
2026
TO: City
Council
FRO
M: Environmental Services Department
Stratis Perros, Environmental Services Director
SUBJECT: Second reading of Ordinance No. 1372 amending portions of Title 9 of the Simi V alley M unicipal C ode to update regulations in the Simi Valley Municipal Code governing density bonus and incentives provisions, and a determination that the amendments are exempt from the California Environmental Quality Act
Staff Recommendation
It is recommended that Ordinance No. 1372 be adopted.
Background
The attached Ordinance No. 13 72 was i ntroduced for f irst reading at t he City C ouncil meeting of June 22, 2026, without modifications.
Suggested Motion
I move to adopt Ordinance No. 1372 without modifications.
Prepared by: Lucy Blanco, City Clerk
Attachments
Attachment A - Ordinance No. 1372
Agenda Item No.
8B
Attachment A
ORDI
NANCE NO. 1372
AN O
RDINANCE OF THE CITY COUNCIL OF THE CITY OF
SIMI VALLEY FOR CITY -INITIATED MUNICIPAL CODE
TEXT AMENDMENT (Z -S-2026-0002) TO AMEND
PORTIONS OF TITLE 9 OF THE SIMI VALLEY MUNICIPAL
CODE TO UPDATE REGULATIONS IN THE SIMI VALLEY
MUNICIPAL CODE GOVERNING DENSITY BONUS AND
INCENTIVES PROVISIONS, AND A DETERMINATION
THAT THE AMENDMENTS ARE EXEMPT FROM THE
CALIFORNIA ENVIRONMENTAL QUALITY ACT
WH
EREAS, Government Code § 65915(a)(1) requires local jurisdictions to adopt an ordinance that allows housing developers to increase housing density above local zoning regulations and receive incentives (development concessions and waivers) for eligible housing projects in exchange for creating affordable housing; and WH
EREAS, on May 18, 2023, the State of California certified the City’s General Plan Housing Element and its programs, requiring that the City’s density bonus regulations reflect current California law and to provide locally tailored incentives, where permitted by law, to further facilitate mixed -income multi -family and other qualifying housing development; and
WH
EREAS, Z -S-2026-0002 will support the programs, objectives, and policies of the Housing Element of the City’s General Plan; and WH
EREAS, on April 8, 2026, the Planning Commission of the City of Simi Valley held a public hearing and recommended adoption of Z-S-2026-0002; and WH
EREAS, on June 22, 2026, the City Council held a duly noticed public hearing on the proposed ordinance, where they considered evidence and testimony presented; and
WH
EREAS, the proposed amendments are exempt from additional environmental review under California Environmental Quality Act ( CEQA) and CEQA Guidelines because it will not result in either a direct or reasonably foreseeable indirect physical change in the environment (CEQA Guidelines § 15060(c)(2)), does not constitute a “project” as defined by CEQA (CEQA Guidelines § 15378), and it can be seen with certainty that there is no possibility that the ordinance may have a significant effect on the environment (CEQA Guidelines § 15061(b)(3)).
NOW
, THEREFORE, THE CITY COUNCIL OF THE CITY OF SIMI VALLEY DOES ORDAIN AS FOLLOWS:
SE
CTION 1. The findings noted in the City Council staff report dated June 22, 2026, and the recitals set forth above are hereby adopted as findings. 2 SECTION 2. Environmental Assessment. The City Council finds that this Ordinance is not subject to additional environmental review under CEQA pursuant to CEQA Guidelines § 15301 and 15061(b)(3) because the amendments will allow minor alterations of existing private structures and will not inv olve the substantial expansion of the existing residential uses; and because it can be seen with certainty that there is no possibility that the ordinance may have a significant effect on the environment. Adopting this ordinance will not have the effect of deleting or substantially changing any regulatory standards or required findings. This ordinance would not result in any development or changes to the physical environment. Following an evaluation of possible adverse impacts, it can be seen with certainty that there is no possibility that the o rdinance will have a significant effect on the environment.
SECTION 3 . Title 9 to the SVMC is amended as set forth in attached Ordinance No. 1372, which is incorporated by this reference.
SECTION 4. Validity of Previous Code Sections. If the entire ordinance or its application is deemed invalid by a court of competent jurisdiction, any repeal of the Simi Valley Municipal Code (SVMC) or other regulation by this ordinance will be rendered void and cause such SVMC provision or other regulation to remain in full force and effect for all purposes.
SECTION 5. Reliance on Record. Each and every one of the findings and determinations in this ordinance is based on the competent and substantial evidence, both oral and written, contained in the entire record relating to the project. The findings and determinations constitute the independent findings and determinations of the City Council in all respects and are fully and completely supported by substantial evidence in the record as a whole.
SECTION 6. Limitations. The City Council’s analysis and evaluation of the project is based on the best information currently available. It is inevitable that in evaluating a project, absolute and perfect knowledge of all possible aspects of the project will not exist. One of the major limitations on analysis of the project is the City Council’s lack of knowledge of future events. In all instances, best efforts have been made to form accurate assumptions. Somewhat related to this are limitations on the City’s ability to solve what are, in effect, regional, state, and national problems and issues. The City must work within the political framework within which it exists and with the limitations inherent in that framework.
SECTION 7. Preservation. Repeal or amendment of any previous SVMC Sections does not affect any penalty, forfeiture, or liability incurred before, or preclude prosecution and imposition of penalties for any violation occurring before this ordinance’s effective date. Any such repealed part will remain in full force and effect for sustaining action or prosecuting violations occurring before the effective date of this ordinance.
SECTION 8. Severability. If any part of this ordinance or its application is deemed invalid by a court of competent jurisdiction, the City Council intends that such invalidity will not affect the effectiveness of the remaining provision or application, and, to this end, the provisions of this ordinance are severable. 3 SECTION 9. Summaries of Information. All summaries of information in the findings, which precede this section, are based on the substantial evidence in the record.
The absence of any particular fact from any such summary is not an indication that a particular finding is not based in part on that fact.
SECTION 10. Publication. The City Clerk is directed to certify the passage and adoption of this ordinance; cause it to be entered into the City of Simi Valley’s book of original ordinances; make a note of the passage and adoption in the records of this meeting; and, within 10 days after the passage and adoption of this o rdinance, cause it to be published or posted in accordance with California law.
SECTION 11. Incompatible Provisions. To the extent of any provision of this ordinance is incompatible with or at variance with any prior adopted ordinance or resolution, the provision of this ordinance shall take precedence.
SECTION 12. The City Council adopts the attached amendments to Title 9 of the Simi Valley Municipal Code as set forth in Exhibit A.
SECTION 1 3. The City Clerk shall cause this ordinance or a summary hereof to be published in a newspaper of general circulation, published in the County of Ventura and circulated in the City, and if applicable, to be posted, in accordance with Section 36933 of the California Government Code; shall certify to the adoption of this ordinance and shall cause a certified copy of this ordinance, together with proof of publication, to be filed in the Office of the Clerk of this City.
SECTION 14. This ordinance shall go into effect and be in full force and effect at 12:01 a.m. on the thirty-first (31st) day after its passage.
PASSED and ADOPTED this _______ day of ______ 2026.
Attest:
Lucy Blanco, City Clerk Dee Dee Cavanaugh, Mayor of the City of Simi Valley, California
Approved as to Form: Approved as to Content:
Algeria R. Ford, City Attorney Samantha C. Argabrite, City Manager
Stratis Perros
Environmental Services Director
4 Exhibit A
Simi Valley Municipal Code Amendments (Z-S-2026-0002)
Title 9 Changes (new sections are underlined; removed sections are shown with strikethrough)
Chapter 9-31 – Density Bonus/Affordable Housing Provisions
DENSITY BONUS AND INCENTIVES PROVISIONS
9-31.010 Purpose and Intent
9-31.020 Procedures
9-31.030 Definitions
9-31.040 Bonus and Incentives
9-31.050 Amenities
9-31.060 Menu of Incentives
9-31.010 Purpose of Chapter and Intent
This Chapter establishes procedures for implementing density bonus requirements set forth in California law (Government Code § 65915, et seq.), as it may be amended from time to time (the “Density Bonus Law”).
The purpose of this Chapter is to identify the standards and regulations under which density bonuses and other incentives may be offered by the City to developers of Housing Development projects in compliance with State Law (Government Code Section 65915 et seq.). Neither State Law nor this Chapter require the provision of direct financial incentives for housing development, including the provision of publicly owned land, or the waiver of fees or dedication requirements.
9-31.020 Procedures
A. In addition to any other requirement, applications for a density bonus must be filed on a form approved by the Environmental Services Director, or designee (the “Director”). An application must be filed concurrently with any other land use application required by this code. At the time the application is submitted, the applicant must pay all applicable fees established by City Council resolution.
B. The Director will process the Density Bonus Law application in the same manner as all applications required by this code.
5 C. Applications filed under this chapter must include reasonable documentation to establish eligibility under the Density Bonus Law.
D. In addition to the procedures in subsections (A)–(C), for projects qualifying under the Density Bonus Law for which ministerial approvals are required, the following procedures apply:
1. Application. An applicant must file a request on a form provided by the Director and accompanied by fees established by City Council resolution.
2. Affordable Housing Agreement. An applicant must comply with the affordable housing agreement requirement in section 9.31-040(C).
3. Director Authority. The Director will review applications for consistency with this title.
4. Action. The City Council will approve a density bonus and requested incentive(s), which may include: 1) the statutory Density Bonus Law incentives, unless the Director makes one or more of the written findings provided for under Government Code § 65915(d)(1); and/or 2) the supplemental incentives identified in Section 9- 31-060 Menu of Incentives.
5. Written Decision. The Director must transmit a written decision to the applicant.
9-31.020 Density Bonus, Incentives and Concessions, Waivers A. Granting of density bonus.
1. Density Bonus. When a developer agrees to build a Housing Development, the City shall grant a density bonus based upon the following table:
Density Bonus
Income Category Min. percent
of affordable
units
Bonus to be
granted
Additional
bonus for
each 1%
increase in
affordable
units above
the minimum
Total
maximum
bonus
Very Low-Income 5% 20% 2.5% 35%
Low-Income 10% 20% 1.5% 35%
Moderate-Income (for-sale common
interest development only)
10% 5% 1% 35%
100% Senior Citizen Housing
Development or Senior Citizen Mobile
Home Park
100% 20% N/A 20%
6 2. Additional Density. Density bonus in excess of the maximum specified in Section A.1 above is at the sole discretion of the City Council and may be approved only for housing developments affordable to low - and very low -income households upon the applicant demonstrating to the City Council that the project includes additional project benefits such as those included in the following non-exclusive list. However, in no event shall the total density of the site, including density bonus units, exceed 45 dwelling units per acre for non- age restricted housing developments and 50 dwelling units per acre for age restricted housing developments.
a. The project is designed to a minimum of Leadership in Energy and Environmental Design (LEED) Silver standards.
b. The project is ¼ mile or less from a transit stop.
c. The project provides 50% or more of its paving surfaces as permeable. d. Trees are selected to be summer shading and planted in locations that achieve energy efficiencies through reducing the heat island effect by shading a minimum of 30% of paved surfaces at five years growth. e. There is at least a 25% increase in outdoor common areas and recreational space above that which would be required in the offset of a Cluster Development Permit.
f. All units include at least 300 cubic feet of storage area by increasing the garage size over the minimum size required by the City's Development Code or providing private accessory storage areas.
g. A community room of no less than 400 square feet is provided on-site.
3. General Provisions.
a. The applicant can select from only one of the income categories for which they seek a bonus density. The applicant cannot combine bonuses from different income categories.
b. When calculating the number of permitted bonus or affordable units, any calculations resulting in fractional units must be rounded to the next larger whole number.
c. The density bonus units may not be included when determining the number of affordable units necessary to qualify for a density bonus. [As an example, a residential project for which a density of 100 dwelling units would otherwise be allowable under the zoning will 7 qualify for a 20% density bonus by providing 10% or 10 dwelling units as affordable to low-income households. With the density bonus, the total project size will be 120 dwelling units, of which 10 dwelling units must be affordable to low-income households, and 20 dwelling units are the density bonus units.]
d. An applicant may request a lesser density bonus than the bonus to which a project is entitled, but no reduction will be permitted in the number of affordable units required.
e. The granting of any density bonus, incentive, or concession shall not in and of itself require the need for a general plan amendment, zone change, or other discretionary approval.
f. Applicants shall ensure continued affordability and/or age restrictions of units as follows:
i. The developer shall enter into a written Affordable Agreement or Senior Agreement with the City to either ensure continued affordability of the units or to maintain the availability of all senior units for a period of not less than 55 years.
ii. Rents for the low-income units shall be set at an affordable rent. iii. Owner-occupied affordable units shall be available at an Affordable Housing Cost.
g. When an applicant for a residential development approval donates land to the City for affordable housing, the housing development may be eligible for an additional density bonus, as specified in Government Code Section 65915(g).
h. A residential development which contains the requisite number of affordable units pursuant to the requirements of this Chapter and which contains a childcare facility may be eligible for an additional density bonus or incentive, as specified in Government Code Section 65915(h).
i. Condominium conversions qualifying as a Housing Project and containing the requisite number of affordable units may be eligible for a density bonus or incentive as specified in Government Code Section 65915.5.
B. Granting of Incentives or Concessions.
1. Quantity of Incentives or Concessions. When a developer agrees to build a housing development, the City shall grant incentives or concessions based upon the following table:
8 Requirements to Qualify for Incentives or Concessions Income category Minimum percentage of units
needed to qualify for incentives or concessions
Very Low-Income 5% 10% 15%
Low-Income 10% 20% 30%
Moderate-Income (for-sale common
interest development only)
10% 20% 30%
Maximum Allowable Number of
Incentives or Concessions
1 2 3
2. Types of Concessions/Incentives. The following is an exclusive list of the concessions/incentives that may be requested:
a. Up to a 20% reduction in any of the following setbacks (each reduction is one concession):
i. Front yard setback.
ii. Rear yard setback.
iii. Side yard setback.
iv. Accessory structure setback.
b. Up to a 20% increase in the maximum allowed building height.
c. Up to a 20% decrease in on-site allowed structure separation (each individual building separation is one concession).
d. Up to a 20% decrease in minimum lot sizes.
e. Increase in allowed duplex units up to a maximum of 40% of the total number of units in the project.
f. Up to a 10% reduction in the required length of the driveway in front of the required garage parking.
g. Up to a 20% reduction in the required rear open yard area.
h. Up to a 20% increase in the maximum front yard paved area.
3. Decline to Grant. The City may decline to grant a requested incentive or concession if written findings based upon substantial evidence are made by the City Council stating any of the following:
a. The incentive or concession is not necessary in order to provide for affordable housing costs or affordable rents for the targeted units as defined in State Law.
9 b. The concession or incentive would have a specific adverse impact, as defined in paragraph (2) of subdivision (d) of Section 65589.5 of the Government Code, upon health, safety, or the physical environment, and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact.
c. The concession or incentive would have an adverse impact on any real property that is listed in the California Register of Historical Resources.
d. The concession or incentive would be contrary to State or Federal Law.
C. Waivers. An applicant may submit to the City a proposal for the waiver or reduction of development standards that will have the effect of physically precluding the construction of a housing development meeting the criteria of Section 9-31.020.A.1 of this Chapter, exclusive of any additional density bonus that may be granted under Section 9-31.020.A.2, or with the concession or incentives permitted under Section 9-31.020.B of this Chapter, and may request a meeting with the City.
Projects only qualify for a waiver if no feasible design alternatives or product types are available to construct the housing development in compliance with the development standard(s) requested to be waived. The City may decline to grant a requested waiver if:
1. The development standard for which a waiver is requested does not physically preclude the construction of the development of the project at the density allowed by Section 9-31.020.A.1 of this Chapter (exclusive of any additional density bonus allowed under Section 9-31.020.A.2 of this Chapter) or this allowed density can be obtained by altering the site design or product type proposed by the applicant;
2. The waiver or reduction would have a specific, adverse impact, as defined in paragraph (2) of subdivision (d) of Government Code Section 65589.5, upon health, safety, or the physical environment, and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact;
3. The waiver or reduction of a development standard would have an adverse impact on any real property that is listed in the California Register of Historical Resources; or
4. The waiver or reduction would be contrary to State or Federal Law. (Exh. A, Ord. 1157, eff. July, 22, 2010)
9-31.030 – Application
The procedures identified below contain information and requirements necessary for the submittal and evaluation of proposed affordable housing developments:
A. Application. Applicants for bonus density shall submit to the City an application for an affordable or senior housing development. The 10 application shall include all requested information, documentation, fees, and signatures before acceptance for review.
B. Required contents.
1. Proof of site ownership/control or property owner's signature or Power of Attorney; and
2. A complete pro forma for the proposed project. The required information shall be prepared in compliance with generally accepted accounting standards and shall include all information deemed necessary by the City for thorough evaluation of the proposal. The City may require the services of specialized financial consultants to review and corroborate the data in the pro forma and analysis. The applicant will be liable for all staff costs incurred in reviewing the documentation as well as those specified in the Schedule of Service Charges on file with the Department of Environmental Services.
(Exh. A, Ord. 1157, eff. July, 22, 2010)
9-31.030 Definitions
Unless the contrary is stated or clearly appears from the context, the following definitions govern the construction of the words and phrases used in this chapter . Terms and phrases used in this Chapter have the same meaning as defined by the Density Bonus Law. Undefined words and phrases have the same meaning as set forth in this code.
9-31.040 Bonus and Incentives
A. Housing developments qualifying under the Density Bonus Law may receive a bonus or concession pursuant to this chapter.
B. Where the density allowed under this code is inconsistent with the density allowed under the land use element of the General Plan, the maximum density allowed controls.
C. Before the Director issues a zoning clearance in accordance with this code, an applicant receiving bonuses or concessions under this chapter must execute and record an agreement, in a form approved by the City Attorney, securing the continued affordability of all required income- restricted dwelling units in accordance with the Density Bonus Law and this chapter.
D. All dwelling units benefitting from the bonuses or concessions under this chapter must be concurrently built in the same manner as market rates. All affordable units must be integrated and reasonably distributed throughout the approved project with the market rate units to ensure a reasonable mix of affordable and market rate units.
11 E. Density Calculation. The area of any land required to be dedicated for street or alley purposes may be included as lot area for purposes of calculating the maximum density permitted by the underlying zone in which the project is located.
9-31.050 Amenities
Residents of affordable units may not be charged for amenities not charged to other residents including, without limitation, access to recreational facilities, parking, fiber internet, and interior amenities/appliance package like dishwashers, microwave ov ens, washers and dryers. Optional services for all residents must be the same. Tenants of affordable units may not be required to purchase additional services.
9-31.060 Menu of Incentives
Applicants with projects qualifying for incentives may request one or more of the following incentives; the number of incentives being requested must be consistent with the Density Bonus Law unless otherwise authorized by the approving body. These incentives are supplemental and do not limit an applicant’s right to request other incentives, concessions, waivers, or reductions of development standards consistent with state law.
A. Additional density or height in designated areas. Limited additional density or height beyond the density bonus required by state law may be considered for qualifying housing developments located in areas identified in adopted City plans or regulations as appropriate for higher intensity or transit - supportive development, subject to applicable objective standards, required height transitions, and any caps or criteria.
B. Community benefit design flexibility. Targeted modifications to objective development or design standards, including without limitation, façade or frontage requirements, may be considered where a project provides clearly identified community benefits that are consistent with applicable objective standards and adopted City plans or policies, such as publicly accessible open space, enhanced streetscape improvements, or additional multimodal access features.
C. Open space and amenity tradeoffs. Limited reductions in required common open space may be considered where enhanced onsite amenities, podium- level or rooftop open space, or publicly accessible open spaces are provided and are consistent with applicable objective standards and adopted City goals and policies addressing open space and recreation.
12 D. Parking strategy flexibility. In locations identified in adopted City plans or regulations as appropriate for reduced or shared parking, shared parking arrangements, modified parking configurations, or limited reductions in parking requirements may be considered, provided that any minimum or maximum parking ratios required or permitted by the Density Bonus Law are satisfied and applicable objective access, circulation, and safety standards are met.
13