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Item 18 - Consideration of Ord. No. 435 Density Bonus Proc.

Yucaipa City Council
November 13, 2023

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Item 18 - Consideration of Ord. No. 435 Density Bonus Proc.
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November 13, 2023
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Yucaipa City Council
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Agenda Item No.

CITY OF YUCAIPA

AGENDA REPORT
TO: Honorable Mayor and City Council
FROM: Fermin Preciado, Director of Development Services/City Engineer" Benjamin J. Matlock, Deputy Director of Community Development/City Planner/ FOR: City Council Meeting of November 13, 2023
SUBJECT: City of Yucaipa (Case No. 22-168/DCA); Consideration of Ordinance No. 435, amending Article 7 of Chapter 1 of Division 3 of the Yucaipa Development Code regards the City's Density Bonus Procedures to meet current state law. (Continued from October 23, 2023)
RECOMMENDATION:

That the City Council conduct a public hearing and consider the Planning Commission's recommendation to:

1. Approve first reading, by title only, as read by staff, of Ordinance No. 435, which amends the City's Density Bonus Procedures to reflect current state law requirements; and

2. Find that the Ordinance is exempt from Environmental Review pursuant to CEQA Guidelines Section 15061(b)(3).

BACKGROUND/DISCUSSION:

Originally enacted in 1979, California's Density Bonus Law (Gov. Code §§65915 - 65918) allows an increase in the permissible density allowed by the City's General Plan as part of the development of a property. In exchange for the increased density, a certain number of new affordable dwelling units or senior housing must be provided and maintained for several decades.

The Density Bonus Law generally works through a sliding scale process — the higher percentage of affordable units, or the higher the overall affordability relative to the Area Median Income (AMI), the higher number of units may be built. As part of the process, developers may qualify for waivers and incentives to help achieve the newly permitted density or to help reduce the overall project costs. The City's Density Bonus process was last updated by Ordinance No. 297, which was approved by the City Council at their meeting of July 26, 2010.

What began with an effort to increase the development of additional affordable housing throughout the State has evolved as the State has declared an overall housing crisis in California. The past few years have resulted in more legislation regarding cities' efforts towards housing production than had been seen in several decades. For reference, over 100 new housing -related laws have been passed since 2016, including a number that have impacted the Density Bonus process. Those updates are not reflected under the City's current Development Code. It should be noted that the City is subject to

complying with these provisions whether they are included in our Development Code or not, but it is preferable to have them displayed in a manner that will better assist and inform the public, the Commission, developers, and staff of the everchanging laws.

Draft Ordinance No. 435 was presented to the Planning Commission for consideration and a recommendation to the City Council. The Ordinance reflects the current California law requirements related to the Density Bonus process. Below is a table that includes the current increases that are allowed:

DENSITY BONUS CHART*
/O:IEN YOUTH/
1ltONCaB:E ENT �'EAY LOWW:OME Eaw.?IC05tE ►IQOLRATE NCGUL WOOQVATION CCCLEGE SLVIQQ•••• CISAB:EO YET:/
PMENTACE•• U SiTYBCNUS OENSITYBams CEtt5lrf BCt1U.••• CEwuTYGOt1U4 nOUE:ESS Si U7LVTS 511b
20%
20:a
6%

22.S%
20%
7%
2S-"�
20%
8%
275 a
20%
9%
30%
-
( 20%
10%

32.595
20'b
5%
15%
20%
20%
11%
35%

21.S%
61A
16%
20%
20%
121%

38.75%
23%
7%
17%
20%
20%
131%

42.5%

2.i.5
8 0
18%
20%
20%
14%

46.2546
26%
9%
19%
20%
20%
15%
50%
27546
10%
20:b
20%
20%
16%
50%
29%
11%
21: �
20%
20%
17%
50%

30.5%
12%

22. 20%
20%
18%
50%
32%
13%
2 -0
20%
20%
19%
5046
335%
14%
24Sb
20%
20%
20%
50%
35%
15%
2S%
20%
20%
35' �
21S,0
5046

38.759'.
15=:v
26%
2030
20%
3S%
22%
50%
42 5h:
17%
27%
( 20%
20%
35%
2346
50%

46.25%
18:10
28%
20%
20%
35%
2406
SO%
50%
19%
20-4o
20%
20%
35%
2V-
50:
201
30So
20%
20%
35%
26%
5C
21%
31%
20%
20%
35%
27%
50 5" :0
22%
32%
20%
20%
35%
28?5
50 1=;0
23'1
33%
20%
20%
35%
29'
5" : j
24%
34%
20%
20%
35%
30%
( 5040
50%
25%
35%
20%
20%
354b
31%
( 50%
50%
26%
35%
20%
20%
35%
32%
50%
50%
27::
35%
( 2"7
201%
35%
33%
50%
50%
28 3."'.
38%
50%
50%
33%
35%
20Sti
20%
35%
39%
50%
50%
34%
35%
( 20%
( 20%
35%
40%
50%
50%
35%
3S%
( 20%
20%
35%
41;_
50 50"0

38.75%
35%
( 20%
20%
3545
42%
5046
5^1 0

42.546
35%
20%
20%
35 0?S
43%
5006
52' ;'6

46.25%
35%
20%
20%
35%
44%
( 5C)
SO:6
50%
35%
20%
20%
35%
100A�--
( 'u._
80;b
80%
35%
20%
20%
35%

Consistent with the City's existing Density Bonus process, senior housing projects in the City's RM-72C and RM-IOM districts would also qualify for a 100% increase in density. The provisions are also consistent with Program #15 identified in the City's 6"' Cycle Housing Element. One additional element that has been included is a Density Bonus offset program to meet the needs of Senate Bill (SB) 330, which prohibits cities from downzoning the residential capacity of a property without an increase to somewhere else in the city within 180 days. Because the City has a one map system, each "rezone" is a General Plan amendment, and with the timelines specified by SB330, this new process would better ensure compliance with state law by providing the necessary flexibility to comply with the state's "no net loss" provisions.

City of Yucaipa Housing Element Excerpt

15. Density Bonus Program
The Municipal Code offers a two-part density bonus ordinance. Projects that comply with state law requirements are entitled to receive all density bonuses that are spelled out in the California Government Code. In addition, the City adopted Ordinance 297 that offers the same types of development incentives as required under state law but also allows for a 100-percent density bonus for senior housing in select residential and commercial zones. In addition, developers can request concessions (e.g., parking, development standards, and financial incentives, etc.) to make the project financially feasible. Changes have been made to the state density bonus law in recent years, including the level of affordability and eligibility of different types of projects.

Objective:

Continue to implement and monitor the density bonus program and update to comply with changes in state law over the past several years. Consider additional density bonuses beyond state law requirements for projects that provide amenities for family -oriented affordable housing.

Relevant Policies: HN-3.3
Fair Housing Issue: Not Applicable
Timeframe: Amend within one year of housing element adoption Planning Commission Review:

The proposed Ordinance was reviewed by the Planning Commission at their regular meeting of October 4, 2023. The Commission confirmed details of how the density increase was calculated and recognized its application with prior projects, noting their appreciation that the State's requirements will be easier to reconcile with the update to the City's Development Code. The Planning Commission recommended the item 6-0-1-0 (Hicks absent).

Environmental Review:

The adoption of the Ordinance No. 435 is exempt from CEQA pursuant to CEQA Guidelines Section 15061(b)(3), because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, as the provisions of State law related to any Density Bonus applications preempts any local regulations that have not yet been adopted, and the provisions that are proposed are within the requirements of state law.

FISCAL IMPACT:

There is no direct fiscal impact associated with approval of this Development Code Amendment.

Attachments:

1. Findings for Development Code Amendment

2. Draft Planning Commission Minutes from October 4, 2023

3. Draft Ordinance No. 435
Approved by:

ATTACHMENT 1

Attachment 1:

FINDINGS: DEVELOPMENT CODE AMENDMENT NO.22-168
The proposed Development Code Amendment is consistent with the General Plan and its policies and objectives because its implementation will enhance the public's health, safety, and general welfare, and has been developed to meet the requirements of state law.

ATTACHMENT 2

Agenda Item No.

City of Yucaipa

PLANNING COMMISSION MINUTES
Regular Meeting of October 4, 2023
A Regular meeting of the Planning Commission of the City of Yucaipa, California was called to order in the Council Chambers, 34272 Yucaipa Boulevard, Yucaipa, on October 4, 2023, at 6:30 PM.

PRESENT: J.R. Allgower, Chair
Richard Beck, Commissioner
Stacey Chester, Commissioner
David Higginson, Commissioner
Donna Snodgrass, Commissioner
Lyle Vick, Commissioner
ABSENT: Tony Hicks, Vice Chair
CITY STAFF: Benjamin Matlock, Deputy Director of Community Development/City Planner Czarmaine Majan, Deputy City Attorney
Madeline Jordan, Associate Planner
Christian Farmer, Assistant Planner
Maria Koolhoven, Planning Commission Assistant

CONVENE PLANNING COMMISSION
The meeting was called to order at 6:31 p.m., with the Pledge of Allegiance led by Commissioner Lyle Vick.

ROLL CALL
PUBLIC COMMENT: No public comments on items not on the agenda.

CONSENT AGENDA
The following Consent Agenda items are expected to be routine and non -controversial. The Planning Commission will act upon them, at one time, without discussion. Any Councilmember or staff member may request removal of an item from the Consent Agenda for discussion.

The title is deemed to be read, and further reading waived on any ordinance listed on the Consent Agenda for second reading and adoption.

Planning Commission Minutes Page 1
10-4-23

1. SUBJECT: Approve Item No. 1, Planning Commission Minutes of September 6, 2023.

ACTION: MOTION BY Commissioner Snodgrass, SECOND BY Commissioner Chester, CARRIED, 6-0-1-0, TO APPROVE CONSENT AGENDA ITEM NO. 1.

PUBLIC HEARINGS:

The order of Business for the Public Hearing Shall Be:

A. Disclosure of Ex Parte Disclosure
B. Staff Presentation
C. Applicant/Representative Presentation
D. Public Comments
E. Applicant Rebuttal (if necessary)
F. Public Hearing Closed
G. Commission Discussion

2. SUBJECT: Uptown Business District Specific Plan (Case No. 22-164/SPA): A Specific Plan Amendment to the Uptown Business District Specific Plan to streamline the review procedures and make necessary updates to the plan based on the current conditions. The streamlined provisions would omit the Development Opportunity Reserve (DOR) process for achieving the permissible 24 du/ac density for residential and mixed -use projects and allow their project approvals through the City's Land Use Compliance Review procedures, consistent with the City's adopted Housing Element and General Plan policies.

RECOMMENDATION:

That the Planning Commission conduct a Public Hearing and recommend that the City Council:

1. Adopt Resolution 2023-51 approving the proposed Specific Plan Amendment for the Uptown Business District Specific Plan; and

2. Adopt the Findings as contained in the Agenda Report; and

3. Find that the Specific Plan Amendment exempt from additional Environmental Review as an Addendum to the 2016 Yucaipa General Plan Environmental Impact Report that had been prepared for the 6th Cycle Housing Element Update (2021-2029) in accordance with Section 15164 of the CEQA Guidelines, and identified that the conditions outlined in Section 15162 of the Guidelines that call for preparation of a subsequent or supplemental EIR were not met; further the adoption of the Ordinance is consistent with Program #10 identified in the Housing Element, and would not result in impacts not originally analyzed in the Addendum to the 2016 General Plan EIR; and

4. Direct Staff to file a Notice of Determination.

DISCUSSION:

Deputy Director/City Planner Ben Matlock presented the Agenda Report.

Planning Commission Minutes Page 2
10-4-23

Commissioner Snodgrass asked for clarification on the maximum height front facade and if this would allow for a four-story building. Deputy Director/City Planner stated that the existing height would allow for a four-story building to be constructed, and that the goal is intended to help add flexibility for architects.

Commissioner Chester asked if the plan would include a multi -story parking structure. Deputy Director/City Planner Ben Matlock stated that this would not modify anything regarding parking, and a structure has been discussed as a future option.

Commissioner Snodgrass expressed concerns regarding the recent fee schedule that was approved by City Council. Deputy Director/City Planner Ben Matlock noted that the development fees recently approved reflect the cost of living and CPI increases, and to make sure that developers pay for the full share rather than taxpayers. Deputy Director/City Planner Ben Matlock stated that one thing that did change was to minimize the applications that required a deposit and will now be a set fee. Ben also noted that the streamlined process would actually be more cost effective for all.

Public Comments: No comments received.

The Public Hearing was then closed.

Commissioner Higginson noted that likes the idea of streamlining the process.

Commissioner Chester noted that from an economic development standpoint, that this will benefit the city as it creates more jobs and housing, and make the process clearer for everyone.

ACTION: MOTION BY Commissioner Snodgrass, SECOND BY Commissioner Higginson, CARRIED, 6-0-1-0, TO APPROVE AGENDA ITEM NO.2.

3. SUBJECT: City of Yucaipa (Case No. 22-168/DCA): Consideration of Ordinance No. 435, amending Article 7 of Chapter 1 of Division 3 of the Yucaipa Development Code regards the City's Density Bonus Procedures to meet current state law.

RECOMMENDATION:

That the Planning Commission conduct a public hearing and recommend that the City Council:

A) Approve first reading, by title only, as read by staff, of Ordinance No. 435, which amends the City's Density Bonus Procedures to reflect current state law requirements.

B) Find that the Ordinance is exempt from Environmental Review pursuant to CEQA Guidelines Section 15061(b)(3).

DISCUSSION:

Deputy Director/City Planner Ben Matlock presented the Agenda Report.

Planning Commission Minutes Page 3
10-4-23

Commissioner Vick noted concerns that with all the recent ordinances in response to state law, he wonders what the erosion of representation in land decisions versus only objective standards that has no face of Yucaipa will be.

Public Comments: No comments received.

The Public Hearing was then closed.

Commissioner Snodgrass asked staff for clarification on the density bonus chart. Deputy Director/City Planner Ben Matlock explained how to use the chart.

ACTION: MOTION BY Commissioner Beck, SECOND BY Commissioner Snodgrass, CARRIED, 6-0-1-0, TO APPROVE AGENDA ITEM NO.3.

4. SUBJECT: City of Yucaipa (Case No. 23-119/DCA): Ordinance No. 431, amending Division 4, Division 7, and Division 8 of the Yucaipa Development Code to regulate Development of Two Unit Residential Development or Urban Lot Splits for Single Family -designated Lots in accordance with Senate Bill 9.

RECOMMENDATION:

That the Planning Commission conduct a public hearing and recommend that the City Council:

A) Approve first reading, by title only, as read by staff, of Ordinance No. 431 that will regulate the development of Two Unit Residential Development or Urban Lot Splits for Single Family -designated Lots in accordance with Senate Bill 9; and B) Find that the Ordinance is exempt from Environmental Review as state law includes a provision that explicitly states that an ordinance to implement Senate Bill 9 (California Government Code Section 65852.21) shall not be considered a project under the California Environmental Quality Act (CEQA) and, therefore, is not subject to environmental review. Further, future projects completed under SB9 would be a ministerial action and exempt from CEQA, and under the "General Rule" (Section 15061(b)(3)), SB9 preempts any City regulations that are not in place.

DISCUSSION:

Deputy Director/City Planner Ben Matlock presented the Agenda Report.

Public Comments: One public speaker slip was received.

1. Hansen Wang — Quartz Street — He stated that in the streamlining of codes, staff should continue to look ahead and as things change, revisions should be made to make sure we're developing in the way we want. He appreciated the clarification of the density bonus.

Planning Commission Minutes Page 4
10-4-23

Deputy Director/City Planner expressed appreciation for Mr. Wang's comment and agreed that an approach of "set it & forget it" will lead to unexpected outcomes; we should always check on if we are meeting our goals and needs.

The Public Hearing was then closed.

ACTION: MOTION BY Commissioner Higginson, SECOND BY Commissioner Vick, CARRIED, 6-0-1-0, TO APPROVE AGENDA ITEM NO.4.

ANNOUNCEMENTS: Deputy Director /City Planner Benjamin Matlock announced that the Five Winds Festival is coming up. Mr. Matlock informed the Commissioners that there may be another meeting in October.

ADJOURNMENT:

The meeting adjourned at 7:42 PM.

Benjamin Matlock
Deputy Director/City Planner
JR Allgower
Chair of the Planning Commission
Planning Commission Minutes
10-4-23

Page 5 ends

ATTACHMENT 3

ORDINANCE NO.435

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF YUCAIPA, CALIFORNIA, AMENDING ARTICLE 7 OF CHAPTER 1 OF DIVISION 3

OF THE YUCAIPA DEVELOPMENT CODE REGARDING THE CITY'S

DENSITY BONUS PROCEDURES TO MEET CURRENT STATE LAW
WHEREAS, the City of Yucaipa's current development code requires amendment due to changes in California law; and
WHEREAS, this ordinance will bring the City up to the latest state standards; and WHEREAS, in conformance to state law, the City wishes to provide density bonuses and other incentives, concessions, or waivers to developers for the production of housing affordable to lower income households, moderate income households, and senior citizens, and to increase the availability of childcare facilities in the City.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF YUCAIPA, CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS:

Section 1. Development code update:

Article 7, "Density Bonus Procedures" is hereby amended to read as follows in its entirety:

ARTICLE 7 DENSITY BONUS PROCEDURES
Sections

83.010705
Purpose.

83.010710
Definitions.

83.010720
Eligible Projects.

83.010730
Density Bonus.

83.010740
Concessions or Incentives.

83.010750
Parking Reductions.

83.010760
Waiver or Reduction of Development Standards.

83.010770
Land Donation Bonus.

83.010780
Childcare Facilities Bonus.

83.010790
Condominium Conversions.

83.010800
Project Application.

83.010810
Density bonus program for S13330.

83.010820
Enforcement; Conditions.

83.010705 Purpose.

The purpose of this Article is to implement requirements of the State Density Bonus Law (California Government Code Title 7, Division 1, Chapter 4.3, Sections 65915, et seq.), and the City's Housing Element by specifying how the City shall provide density bonuses and other 4874-4411-3791.1 1

incentives, concessions, or waivers to developers for the production of housing affordable to lower income households, moderate income households, and senior citizens, and to increase the availability of childcare facilities in the City. Nothing in this Chapter is intended to create a mandatory duty on behalf of the City or its employees under the Government Tort Claims Act, and no cause of action against the City or its employees is created by this Article that would not arise independently of the provisions of this Chapter.

83.010710 Definitions.

All terms used in this Article shall be interpreted in accordance with the definitions herein except to the extent otherwise defined in the State Density Bonus Law. "Affordable rent" means the maximum monthly rent for a specified income level calculated in accordance with Health and Safety Code Section 50053 and implementing regulations. "Affordable sales price" means the maximum housing cost for a specified income level, calculated in accordance with Health and Safety Code Section 50052.5 and implementing regulations.
"Affordable units" means those dwelling units which are required to be rented at affordable rents or sold at an affordable sales price, very low-income households, low-income households, or moderate -income households.
"Applicant" or "developer" means a person, persons, or entity who applies for a housing development, as well as the owner or owners of the property if the applicant does not own the property on which development is proposed.
"Area Median Income" or "AMP" means the median family income (adjusted for family size) for San Bernardino County promulgated and published annually by the California Department of Housing and Community Development ("HCD") pursuant to Title 25, § 6932 of the California Code of Regulations.
"Childcare facility" means a childcare facility other than a family day care home, including, but not limited to, infant centers, preschools, extended day care facilities, and school age child care centers.
"Concession or incentive" is as defined in Government Code Section 65915. "Density bonus" means a density increase over the otherwise maximum allowable residential density under the applicable zoning ordinance and land use element of the general plan as of the date of application by the applicant to the city, as defined by Government Code Section 65915.
"Director" means the Community Development Director, or a designee of the Community Development Director.
4874-4411-3791.1 2

"Housing development" is a residential development project for five or more residential units, including mixed -use developments, as defined in Government Code Section 65915. "Planned development" is as defined in Civil Code Section 1351(k). "Total units" means a calculation of the number of units in a housing development, excluding units added by a density bonus award pursuant to this Chapter and including units designated to satisfy an inclusionary zoning requirement if applicable.

83.010720 Eligible Projects.

The City shall grant one density bonus, the amount of which shall be as specified in section

83.010730 and if requested by the applicant and consistent with the applicable requirements of this Chapter, incentives or concessions, as described in subsection 83.010740 reduced parking ratios, as described in subsection 83.010750, and waivers and reductions, as described in subsection

83.010760, if the housing development proposed by the applicant meets at least one of the following requirements:

A. A minimum of 5 percent of the total units of the housing development is restricted and affordable to very low-income households as defined in Health and Safety Code Section 50105.

B. A minimum of 10 percent of the total units of the housing development is restricted and affordable to lower income households as defined in Health and Safety Code Section 50079.5.

C. A minimum of 10 percent of the total units of the housing development is sold to moderate income households, as defined by Health and Safety Code Section 50093, provided that all units are offered to the public for purchase.

D. The housing development qualifies as a senior citizen housing development, as defined in Sections 51.3 and 51.12 of the Civil Code, or a mobilehome park that limits residency based on age requirements for housing for older persons pursuant to Civil Code Sections 798.76 or 799.5.

E. A minimum of 10 percent of the total units of a housing development are used for transitional foster youth, as defined by Education Code Section 66025.9, disabled veterans, as defined in Government Code Section 18541, or homeless persons, as defined in the federal McKinney-Vento Homeless Assistance Act (42 U.S.C. Sec. 11301 et seq.), and are subject to a recorded affordability restriction of fifty-five (55) years and provided at the same affordability as very low income units.

F. All of the units of the housing development are used for students enrolled full-time at an institution of higher education accredited by the Western Association of Schools and Colleges or the Accrediting Commission for Community and Junior Colleges, in which a minimum of 20 percent of the total dwelling units are for lower income households, with priority given to students experiencing homelessness (verified pursuant to Section 65195(b)(1)(f)(i)(IV) of the Government Code), and the rent for such units does not to exceed 30 percent of 65 percent of the area median income for a single -room occupancy unit type.
4874-4411-3791.1 3

83.010730 Density Bonus.

If a project meets the requirements set forth in section 83.010720, the applicant shall be entitled to a density bonus calculated as set forth herein. Each component of any density calculation, including base density and bonus density, resulting in fractional units shall be separately rounded up to the next whole number.

A. 100% Affordable Housing Development. If 100 percent of the units in the housing development are lower income or very low-income units, excluding manager's units, with up to 20 percent of the units for moderate income households, the City shall allow an 80 percent maximum density bonus and four (4) concessions or incentives meeting all the applicable eligibility requirements of this Chapter.

B. Very Low -Income Housing Development. A very low-income housing development that meets the requirements of subsection 83.010720(A) shall be entitled to the following density bonus calculation and number of incentives or concessions:

Very Low -Income Unit
Percentage
Density Bonus
Incentives or
Concessions
5% - 9%
20% - 30%
1 10% - l l%

32.5% - 35%
2 12% - 13%

38.75% - 42.5%
2 14%

46.25%
2 15% - 99%
50%
3 100%
(Can include a combination of
very low and low income, with up
to 20% moderate income
80%
4 C. Low Income Housing Development. A low-income housing development that meets the requirements of subsection 83.010720(B) shall be entitled to the following density bonus calculation:

Low -Income Unit Percentage
Density Bonus
Incentives or
Concessions
10% — 13%
20% - 24.5%
1 14% - 16%
26% - 29%
1 17% - 20%

30.5% - 35%
2 24% - 99%
50%
3 100%
80%
4 (Can include a combination of
very low and low income, with
up to 20% moderate income
4874-4411-3791.1 4

D. Moderate Income Housing Development. A moderate -income housing development that meets the requirements of subsection 83.010720(C) shall be entitled to the following density bonus calculation and number of concessions or incentives:

Moderate Income Unit
Percentage
Density Bonus
Incentives or
Concessions
10% - 15%
5% - 10%
1 16% - 19%
l l % - 14%
1 20% - 29%
15% - 24%
2 30% - 35%
25% - 30%
3 36% - 42%
31% - 42.5%
3 43% - 44%

46.25 - 50%
3 45% - 99%
50%
3 100%
(Can include a combination of
very low and low income, with
up to 20% moderate income)
80%
4 E. Senior Citizen Housing Development. A senior citizen housing development that meets the requirements of subsection 83.010720(D) shall be entitled to a 20 percent density bonus. A 100% increase in density may be permitted in the City's RM-72C and RM-1OM district.

F. Transitional Housing Development. A transitional housing development that meets the requirements of subsection 83.010720(E) shall be entitled to a 20 percent density bonus.

G. Student Housing Development. A student housing development that meets the requirements of subsection 83.010720(F) shall be entitled to a 35 percent density bonus and shall be entitled to one (1) concession or incentive.

83.010740 Concessions or Incentives.

For purposes of this Chapter, concessions and incentives include the following:

A. A reduction in site development standards or a modification of zoning code requirements or architectural design requirements that exceed the minimum building standards approved by the California Building Standards Commission as provided in Part 2.5 (commencing with Section 18901) of Division 13 of the Health and Safety Code, including, but not limited to, a reduction in setback and square footage requirements and in the ratio of vehicular parking spaces that would otherwise be required that results in identifiable and actual cost reductions, to provide for affordable housing costs, as defined in Section 50052.5 of the Health and Safety Code.

B. Approval of mixed -use zoning in conjunction with the housing project if commercial, office, industrial, or other land uses will reduce the cost of the housing development and if the commercial, office, industrial, or other land uses are compatible with the housing project and the existing or planned development in the area where the proposed housing project will be located. 4874-4411-3791.1

C. Other regulatory incentives or concessions proposed by the developer or the city or county that result in identifiable and actual cost reductions to provide for affordable housing costs, as defined in Section 50052.5 of the Health and Safety Code, or for rents for the targeted units to be set as specified in subdivision (c).

83.010750 Parking Reductions.

If a housing development meets the requirements of 83.010720, the following parking requirements apply. If the total number of parking spaces for a development is other than a whole number, the number shall be rounded up to the next whole number. For purposes of this section, a housing development may provide onsite parking through tandem parking or uncovered parking, but not through on street parking.

A. General Parking Requirements. Upon an applicant's request, the City may not require more than the following parking ratios for housing developments (inclusive of parking for persons with disabilities):

Studio
1 space
1 Bedroom
1 space
2 Bedroom

1.5 spaces
3 Bedroom

1.5 spaces
Bedroom
.5 Spaces
B. Special Parking Requirements. Notwithstanding subsection (A), upon the request of a developer, the City shall not impose a parking ratio, inclusive of parking for persons with a disability and guests, that exceeds the following for specified projects:

Rental or for -sale housing development with at least 11 % very low

0.5 spaces per unit
income or 20% low-income units, within '/z mile of accessible major transit stop.

For -sale housing development with at least 40 percent moderate-

0.5 spaces per
income units, within 1/2 mile of a major transit stop, as defined bybedroom Public Resources Code Section 21155(b), and where residents of the housing development have unobstructed access to the major transit stop.

Rental housing development that is 100% affordable to lower income 0 spaces per unit
households, as defined by Health and Safety Code Section 50079.5, within 1/2 mile of accessible major transit stop.

Rental senior citizen housing development that is 100% affordable to 0 spaces per unit
lower income households, either with paratransit service or within '/Z mile of accessible bus route (operating at least eight times a day).

Rental housing development that is 100% affordable to lower income 0 spaces per unit
households that is a special needs housing development, as defined i Health and Safety Code Section 51312.
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E,ental housing development that is 100% affordable to lower income 0 spaces per unit iouseholds that is a supportive housing development, as defined i Health and Safety Code Section 5675.14.

C. The application of the ratios herein does not reduce or increase the number of incentives or concessions to which an applicant is entitled. An applicant may request parking incentives or concessions beyond those provided herein.

83.010760 Waiver or Reduction of Development Standards.

If a development standard would physically prevent the housing development from being built at the permitted density and with the granted concessions or incentives, the developer may propose to have those standards waived or reduced. The City is not required to waive or reduce development standards that would cause a public health or safety problem, an environmental problem, harm historical property, or would be contrary to law. The waiver or reduction of a development standard does not count as a concession or incentive, and there is no limit on the number of development standard waivers that may be requested or granted.

83.010770 Land Donation Bonus.

When an applicant for a tentative subdivision map, parcel map, or other housing development donates land to the City that meets the requirements of subsection (A), the applicant shall be entitled to the density bonus calculations in subsection (B).

A. Requirements. An applicant will be entitled to a density bonus if the land donation meets the following requirements:

1. The land is donated and transferred no later than the date of approval of the final subdivision map, parcel map, or residential development application to the City or to a housing developer approved by the City and by this time the transferred land shall have all permits and approvals, other than building permits, necessary for the development of the very low income housing, with the exception of any design review that would be allowed pursuant to Government Code Section 65583.2(I), as the same may be amended from time to time, if the design has not been reviewed prior to the time of transfer.

2. The zoning classification and general plan designation of the land is appropriate for affordable housing and the land is or will be served by adequate public facilities and infrastructure.

3. The transferred land is at least one acre in size or sufficient size to permit development of at least 40 units.

4. There are appropriate zoning and development standards to make the development of the affordable units feasible.
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5. The transferred land is within the boundary of the proposed development. The applicant may submit a written request to the City to allow the transferred land to be located within 1/4 mile of the boundary of the proposed project.

B. Density Bonus. Land donations made in accordance with subsection (A) shall be entitled to the following density bonus calculation and number of concessions or incentives:

Low Income Units
Percentage
Density Bonus
Incentives or Concessions
10% - 19%
15% - 24%
0 20% -29%
25% - 34%
0 30% +
35%
0 83.010780 Childcare Facilities Bonus.

When an applicant for a housing development includes a childcare facility that meets the requirements in subsection (A), the applicant shall be entitled to the density bonus in subsection (B):

A. Requirements. If an application for a housing development is submitted pursuant to this Chapter, and includes a childcare facility on the premises of, as part of, or adjacent to, the project, the City shall require as a condition of approval that the following occur:

1. The childcare facility shall remain in operation for a period that is as long as or longer than the period during which the density bonus units are required to remain affordable, pursuant to the State Density Bonus Law.

2. 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 units that are required for very low-income households, lower income households, or families of moderate income, pursuant to the State Density Bonus Law.

B. Density Bonus and Concessions or Incentives. If a housing development meets the requirements of subsection (A), then the City shall grant either of the following:

1. An additional density bonus that is an amount of square feet of residential space that is equal to or greater than the amount of square feet in the childcare facility.

2. An additional concession or incentive that contributes significantly to the economic feasibility of the construction of the childcare facility.

C. Notwithstanding any requirement of this section, the City shall not be required to provide a density bonus or concession for a childcare facility if it finds, based upon substantial evidence, that the community has adequate childcare facilities.
4874-4411-3791.1

83.010790 Condominium Conversions.

To receive a density bonus or concessions or incentives set forth in subsection (B), an applicant shall meet the requirements for condominium conversions set forth in subsection (A).

A. Requirements. An applicant proposing to convert apartments to condominiums shall meet the following requirements:

A minimum of 33 percent of the total units of the housing development shall be restricted and affordable to low-income or moderate -income households, or

2. A minimum of 15 percent of the total units of the housing development shall be restricted and affordable to lower -income households.

B. Density Bonus or Concessions or Incentives. If an applicant satisfies the conditions in subsection (A), the City shall grant a density bonus or other concessions or incentives of equivalent value. An applicant proposing to convert apartments to condominiums shall be ineligible for a density bonus, concession or incentives under this section if the apartments proposed for conversion constitute a housing development for which a density bonus, concession or incentives were previously provided under this Chapter. A density bonus awarded pursuant to this section shall be equal to a 25 percent increase in units to be provided within the existing structure or structure proposed for conversion. For concessions or incentives, the City shall not be required to provide cash transfer payments or monetary compensation but may include reductions or waivers of requirements which the City might otherwise apply as conditions of conversion approval.

C. Nothing in this Chapter shall be construed to require the City to approve a proposal to convert apartments to condominiums.

83.010800 Project Application.

A. Requirements. To submit a complete application to the City for a density bonus and other concessions or incentives, the applicant shall:

Identify the section and/or subdivision of the State Density Bonus Law under which the application is made. See Government Code Section 65915, subdivision (b), paragraph (2) for requirements related to lower income households, very low income households, senior citizen housing development, transitional foster youth housing development, disabled veterans housing development, housing development for homeless persons, and moderate income common interest development; see Government Code Section 65915, subdivision (h) for donations of land; see Government Code Section 65915, subdivision (h) for child care facilities; and see Government Code Section 65915.5 for conversion of apartments to condominium projects.

2. Quantify the total density bonus requested, along with the factual and legal basis for the request in accordance with the State Density Bonus Law and this code. 4874-4411-3791.1

3. Identify any incentives or concessions requested by the applicant, along with the factual and legal basis for the request in accordance with the State Density Bonus Law and this code.

4. Identify any waivers, reductions, or modifications of development standards requested by the applicant, along with the factual and legal basis for the request in accordance with the State Density Bonus Law and this code.

5. Provide a preliminary sketch plan showing the context and compatibility of the proposed project within the surrounding area, the number, type, size, and location of buildings, and parking. The design of proposed affordable dwelling units shall be compatible with the market -rate dwelling units within the project. If a project is submitted as part of a land use entitlement, the plan details shall include the requirements listed as part of that permit application.

6. Provide information satisfactory to the Director to enable the City to determine whether the requirements of the State Density Bonus Law and this code have been met by the applicant, including, for example, the project cost per unit and whether any requested incentive or concession is necessary to make the housing units economically feasible. (See Government Code Section 65915, subdivision (d).) Such information may include capital costs, equity investment, debt service, projected revenues, operating expenses, and any other information deemed necessary by the Director.

7. Make payment for the requisite fees in connection with the application.

B. Review. The Director shall review the information provided by the applicant and shall make a recommendation the decision -making body for the proposed project regarding the density bonus and any requested concessions, incentives, waivers, reductions, or modifications. To the extent the Director recommends the grant of a density bonus, concession, incentive, waiver, reduction, or modification, any such grant shall be conditioned upon the applicant's compliance with all relevant obligations set forth in the State Density Bonus Law and this code.

C. Approval. The decision -making body for the proposed project shall also make the final decision on behalf of the City related to any application submitted in accordance with this section based on the Director's recommendation and on substantial evidence. This Chapter shall not be interpreted to require that the City grant a concession or incentive that has a specific, adverse impact, as defined in paragraph (2) of subdivision (d) of Government Code Section 65589.5, upon health or safety, and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact, or that would have an adverse impact on any real property that is listed in the California Register of Historical Resources.

83.010810 Density bonus program for S13330.

A. Purpose and Intent.
4874-4411-3791.1 10

1. SB330 Density Bonus. Concurrent with the approval of any change in zone from a residential use to a less intensive nonresidential use (or other land use entitlement which will reduce housing capacity), a density bonus in the amount of 1.3 units for land currently zoned for multiple family residential development shall be assigned up to the amount of residential units impacted by the change in zone from a residential use to a less intensive nonresidential use (or other land use entitlement which will reduce housing capacity). This density bonus shall be available to applicants with a planning application for new residential development after the effective date of this section who desire to develop land currently zoned for multiple family residential development after the date of approval of the zone change resulting in a less intensive, nonresidential development (or other land use entitlement which will reduce housing capacity).

2. SB330 Density Credits. Concurrent with the approval of any general plan amendment or zoning ordinance amendment which will increase housing capacity above the amounts mandated for regional housing needs, a density credit shall be established equal to the amount of residential units created by the general plan amendment or zoning ordinance amendment that are above the amounts mandated for regional housing needs. The City Council may apply such density credit to any subsequent application for a general plan amendment or zoning ordinance amendment which would have the effect of reducing housing capacity. In no case shall such credit be used to reduce housing capacity below the amounts mandated for regional housing needs
B. Authority. Authority for approval of a density bonus under the provisions of this section shall be vested with the planning commission.

C. Applicability. This density bonus shall be available to developers of multifamily residential housing dwelling units in land use districts that permit multiple family residential development and on properties of at least one -acre minimum.

D. Incentive. Developers may request a density bonus of thirty (30) percent above the allowable number of units for up to the number of residential units that have been impacted by the change in zone from a residential use to a less intensive nonresidential use (or other land use entitlement which will reduce housing capacity).

E. Implementation.

1. An ordinance for the adoption of a change in zone from a residential use to a less intensive nonresidential use (or other land use entitlement which will reduce housing capacity), shall include a determination establishing the existing residential capacity and identifying that these dwelling units will be made available for a residential density bonus pursuant to this section.

2. The total number of dwelling units allowed under this density bonus shall be calculated by multiplying the maximum density allowed under the applicable zoning designation (i.e., the maximum density listed in this title or the applicable specific plan designation), and multiplying the result by 1.3, for a thirty (30) percent density bonus up to the amount of 4874-4411-3791.1 11

residential units impacted by the change in zone from a residential use to a less intensive nonresidential use (or other land use entitlement which will reduce housing capacity). If the result, including the density bonus, contains a fraction of a unit, the number of allowable units shall be determined by rounding down to the nearest whole number if the fraction is below one-half. Calculations containing fractions of one-half or above shall be rounded up.

F. This density bonus may be combined with other density bonus programs included in this article but the total density bonus shall not exceed one hundred (100) percent.

G. The development standards for density bonus projects shall be those of the applicable zoning classification.

H. The city's planning division shall publish the available number of units for the SB330 Density Credits or SB330 Density Bonus on the planning division's page on the city's website.

83.010820 Enforcement; Conditions.

A. Affordable units under this section shall be constructed at the same time as the market -rate units.

B. The right to a density bonus or any other concession, incentive, or waiver under this chapter shall not be transferred or linked to another development.

C. Where a developer proposes to simultaneously develop two or more parcels in the City, nothing in this section shall prohibit the City from using a density bonus and/or concession/incentive granted for one of the parcels on another of the multiple parcels.

D. The developer and/or property owner shall provide the City a yearly accounting of the total project units occupied and vacant, the total occupied and vacant units designated for households of moderate income, households of low income, and households of very low income.

E. An applicant shall agree to ensure that a for -sale unit that qualified the applicant for award of a density bonus meets either of the following conditions:

The unit is initially occupied by a person or family of very low, low, or moderate income, as required, and it is offered at an affordable housing cost and is subject to an equity sharing agreement, or

2. The unit is purchased by a qualified nonprofit housing corporation pursuant to a recorded contact that satisfies all the requirements specified in paragraph 10 of subsection (a) of Section 402.1 of the Revenue and Taxation Code and that includes the restrictions set forth in Government Code Section 65915(c)(2).

F. An applicant shall agree to ensure the continuing affordability of all very low and low-income rental units that qualified the applicant of the award of the density bonus for fifty-five (55) years or a longer period if required by the construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy program.
4874-4411-3791.1 12

G. The City may require a density bonus agreement or recorded affordability restrictions to effectuate any of the requirements of this Chapter and to ensure compliance therewith. Such agreements shall be on a form approved by the City Attorney.

SECTION 2. Severability.

If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted the Ordinance and each section, subsection, sentence, clause, or phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, or phrases be declared invalid or unconstitutional.

SECTION 3. CEQA.

The City Council finds that this Ordinance is exempt from environmental review under the California Environmental Quality Act (CEQA) under the commonsense exemption that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, such as here, the activity is not subject to CEQA.

SECTION 4. Effective Date. This Ordinance shall be effective the 31 st day following its adoption by the City Council
SECTION 5. Publication and Posting. The Mayor shall sign this Ordinance and the City Clerk shall certify as to the adoption and shall cause the ordinance or a summary thereof to be published in accordance with state law.

PASSED, APPROVED and ADOPTED this day of , 2023.

ATTEST:

Justin Beaver, Mayor

APPROVED AS TO FORM
Ana V. Sauseda, CMC Steven Graham, City Attorney
Director of General Services/City Clerk
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