HomeMy WebLinkAbout17 - Title 21 of the Newport Beach Municipal Code Updating Density Bonus Regulations to Comply with State Law (PA2020-032)Q �EwPpRT
CITY OF
s NEWPORT BEACH
`q44:09 City Council Staff Report
September 10, 2024
Agenda Item No. 17
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Seimone Jurjis, Assistant City Manager/Community Development
Director - 949-644-3232, sjurjis@newportbeachca.gov
PREPARED BY: Jaime Murillo, AICP, Deputy Community Development Director -
949-644-3209 jmurillo@newportbeachca.gov
TITLE: Ordinance No. 2024-21: Title 21 of the Newport Beach Municipal
Code Updating Density Bonus Regulations to Comply with State Law
(PA2020-032)
ABSTRACT:
On August 23, 2022, the City Council authorized the submittal of an amendment to Title 21
(Local Coastal Program Implementation Plan) of the Newport Beach Municipal Code
(NBMC) to the California Coastal Commission (CCC). The amendment would incorporate
regulations pertaining to density bonuses with housing development as required and
necessary to ensure the City of Newport Beach's regulations are in compliance with
California Government Code Section 65915, et. Seq (Density Bonuses and Other
Incentives) and to clarify the applicability of density bonuses, waivers and incentives to
properties in the coastal zone.
On April 12, 2024, the CCC approved the Title 21 amendments with suggested
modifications. For the City Council's consideration is an ordinance to Title 21 accepting
and incorporating the CCC's suggested modifications.
RECOMMENDATIONS:
a) Conduct a public hearing;
b) Find this project exempt from the California Environmental Quality Act (CEQA)
pursuant to Section 15061(b)(3), the general rule that CEQA applies only to projects
which have the potential to have a significant effect on the environment; and
c) Waive full reading, direct the City Clerk to read by title only, introduce Ordinance
No. 2024-21, An Ordinance of the City Council of the City of Newport Beach,
California, Adopting Local Coastal Program Amendment No. LC2020-004, as
Modified by the California Coastal Commission, Amending Title 21 (Local Coastal
Program Implementation Plan) of the Newport Beach Municipal Code Related to
Density Bonuses Standards, to Comply with State Law (PA2020-032), and pass to
second reading on September 24, 2024.
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Ordinance No. 2024-21: Title 21 of the Newport Beach Municipal Code Updating
Density Bonus Regulations to Comply with State Law (PA2020-032)
September 10, 2024
Page 2
DISCUSSION:
The State of California enacted the first density bonus law in 1979 to encourage
development of low- and moderate -income units. Over time, the law was amended and
expanded to recognize the need for households at a wider range of income levels and
with specialized needs (i.e. senior, childcare, transitional foster youth, disabled veterans,
homeless persons, and students). The State's Density Bonus Law (DBL) is codified as
California Government Code Sections 65915-65918 (Attachment B).
The intent of DBL is to provide a package of incentives intended to help make the
development of affordable and special housing needs economically feasible. To
accomplish this goal, the law requires local agencies grant an increase to the maximum
allowable residential density, allowing the developer to spread the cost of the affordable
units more broadly over the market -rate units. The law supports the development of
eligible projects at greater densities by granting development incentives and/or
concessions, granting waivers or reductions to applicable development standards, and
granting reduced parking ratios. When a density bonus is requested, the development is
required to construct a minimum percentage of affordable units that are provided to
low -and moderate -income households for a term of 55 years.
All cities are required to comply with the regulations contained within the State legislation.
DBL requires the City to adopt an ordinance that specifies how the City will comply with
State requirements.
On August 23, 2022, the City Council introduced Ordinance No. 2022-18 (Attachment C)
to bring the City's regulations related to density bonuses in Title 20 into compliance with
State law. Prior to this action, the City's density bonus regulations had not been updated
in over 10 years and were outdated. At the same meeting, the City Council also adopted
Resolution No. 2022-56, authorizing the submittal of Local Coastal Program Amendment
LC2020-004 (Attachment D) to the CCC to similarly amend Title 21 and incorporate
regulations pertaining to density bonuses in the coastal zone (Attachment E). Ordinance
No. 2022-18 was adopted by the City Council on September 13, 2022, and is in effect for
all areas of the City outside the coastal zone.
Coastal Commission Action and Acceptance of Suaaested Modifications
On December 9, 2022, the City submitted the City Council's authorized amendment to
Title 21 to the CCC. On April 12, 2024, the CCC considered and denied the amendment
as submitted, but approved it with suggested modifications. The CCC approval letter,
including suggested modifications, is included as Attachment F.
The City Council must either accept or reject all these suggested modifications. If the City
Council rejects the suggested modifications, the proposed amendment would effectively
expire, the proposed regulations would not go into effect, and the eligibility for density
bonuses and associated waivers/concessions within the coastal zone would remain
ambiguous.
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Ordinance No. 2024-21: Title 21 of the Newport Beach Municipal Code Updating
Density Bonus Regulations to Comply with State Law (PA2020-032)
September 10, 2024
Page 3
Should the City Council want to partially accept the suggested modifications, the City
would need to process a new LCP amendment application and attempt to obtain
CCC approval. Staff recommends accepting all suggested modifications. A redline
strikeout version of the proposed amendment, including the suggested modifications, is
included as Attachment G.
The primary reason for the suggested modifications was related to the fact that additional
legislation affecting State DBL was adopted since the City Council actions on August 23,
2022, rendering the pending Title 21 amendment out of date. Specifically, on
September 28, 2022, Governor Newsom signed Assembly Bills (AB) 2334, 1551, and
682, and the following year on October 11, 2023, the governor signed AB 1287 and
Senate Bill (SB) 713. These bills and related changes are outlined in Attachment H.
As a result, the suggested modifications remove most of the proposed language in the
ordinance and instead cross reference DBL. An ordinance that cross references the State
law would avoid the time and resources needed to regularly amend Title 21 through the
CCC with subsequent DBL changes.
A summary of the suggested modifications is included below.
• Cross Reference to State Law — Cross references DBL and deletes the more
comprehensive, originally proposed language. This results in a streamlined and
shortened ordinance as it will not include the lengthy and detailed provisions of the
DBL. This eliminates the need to continually amend Title 21 for consistency with
future changes in the law through the CCC, which is a lengthy process and involves
significant staff time.
• Permitting Process — Clarifies that within the coastal zone, a Coastal Development
Permit (CDP) would be required for a density bonus project and will require an
analysis of whether the project will comply with relevant resource protection
standards of the Local Coastal Program.
• Limitations — Clarifies that in no case shall the coastal resource protection
development regulations of Sections 21.28.040 (Bluff (B) Overlay District),
21.28.050 (Canyon (C) Overlay District), 21.28.015(D)(Waterfront Development),
21.30.015(E)(2) (Development in Shoreline Hazardous Areas) and 21.30.100
(Scenic and Visual Quality Protection), or Chapters 21.30A (Public Access and
Recreation) Chapter 21.30B (Habitat Protection) of Title 21 be waived, reduced or
modified. For example, an applicant may request a waiver from setback
requirements contained in the Implementation Plan, but not if the setbacks are
necessary to maintain important coastal views or provide buffers from
environmentally sensitive habitat areas.
• Parking Waivers — Clarifies that any waivers from off-street parking requirements
are allowed so long as they do not significantly impact public access to the
shoreline.
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Ordinance No. 2024-21: Title 21 of the Newport Beach Municipal Code Updating
Density Bonus Regulations to Comply with State Law (PA2020-032)
September 10, 2024
Page 4
• Errors and Inconsistencies — Other suggested modifications will correct
typographical errors and inconsistencies within the new proposed Chapter 21.32
and elsewhere in Title 21.
Future Title 20 (Plannina and Zonina) Amendments
Staff will continue to amend Title 20 as State law changes, providing for consistency and
easier interpretation when staff works with the development community and members of
the public. Staff we will return with a future amendment to Chapter 20.32 (Density Bonus)
of the NBMC late this fall to comprehensively update the City's density bonus regulations
for consistency with the latest State law changes.
FISCAL IMPACT:
There is no fiscal impact related to this item.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this project exempt from the California
Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3), the general rule that
CEQA applies only to projects, which have the potential for causing a significant effect on
the environment. The amendment specifies how the City will comply with and implement
DBL, and adoption is required pursuant to Government Code Section 65915. The
bonuses, incentives, and waivers permitted by the ordinance are already allowed
pursuant to DBL. The code amendment is further exempt from CEQA pursuant to Section
15265(a)(1), which exempts local governments from the requirements of CEQA in
connection with the adoption of a Local Coastal Program.
NOTICING:
Pursuant to Section 13515 of the California Code of Regulations, a review draft of the
LCP Amendment was made available, and a Notice of Availability was originally
distributed on June 24, 2022, to all persons and agencies on the Notice of Availability
mailing list.
In addition, notice of this amendment was published in the Daily Pilot as an eighth -page
advertisement, consistent with the provisions of the Municipal Code and State law. The
item also appeared on the agenda for this meeting, which was posted at City Hall and on
the City website.
ATTACHMENTS:
Attachment A
— Ordinance No. 2024-21
Attachment B
— State Density Bonus Law (Government Code Sections 65915-65918)
Attachment C
— Ordinance No. 2022-18
Attachment D
— Resolution No. 2022-56 submittal of LCP Amendment
Attachment E
— Coastal Zone Map
Attachment F —
Coastal Commission Approval Letter and Suggested Modifications
Attachment G
— Redline Strikeout Version of Proposed Amendment
Attachment H
— Summary of Recent Density Bonus Law Legislation
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Attachment A
Ordinance Adopting LCP Amendment
No. LC2020-004
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ORDINANCE NO. 2024-21
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH, CALIFORNIA, ADOPTING LOCAL
COASTAL PROGRAM AMENDMENT NO. LC2020-004, AS
MODIFIED BY THE CALIFORNIA COASTAL
COMMISSION, AMENDING TITLE 21 (LOCAL COASTAL
PROGRAM IMPLEMENTATION PLAN) OF THE
NEWPORT BEACH MUNICIPAL CODE RELATED TO
DENSITY BONUS STANDARDS, TO COMPLY WITH
STATE LAW (PA2020-032)
WHEREAS, Section 200 of the City of Newport Beach ("City") Charter vests the
City Council with the authority to make and enforce all laws, rules and regulations with
respect to municipal affairs subject only to the restrictions and limitations contained in
the City Charter and the State Constitution, and the power to exercise, or act pursuant
to any and all rights, powers, and privileges or procedures granted or prescribed by any
law of the State of California;
WHEREAS, Section 30500 of the California Public Resources Code requires
each county and city to prepare a local coastal program ("LCP") for that portion of the
coastal zone within its jurisdiction;
WHEREAS, the City adopted the City of Newport Beach Local Coastal Program
Coastal Land Use Plan ("Coastal Land Use Plan") in 2005, which has been amended
from time to time;
WHEREAS, the California Coastal Commission ("Coastal Commission")
effectively certified the City' s Local Coastal Program Implementation Plan on January
13, 2017, and the City added Title 21 (Local Coastal Program Implementation Plan)
("Title 21") to the City of Newport Beach Municipal Code ("NBMC") whereby the City
assumed coastal development permit -issuing authority on January 30, 2017;
WHEREAS, Chapter 20.32 (Density Bonus) of the NBMC sets forth the City's
requirements for granting density bonuses in compliance with California Government
Code Section 65915 et seq. ("State Density Bonus Law");
WHEREAS, the City Council adopted Ordinance No. 2022-18 on September 13,
2022, updating density bonus standards for compliance with the State Density Bonus
Law;
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Ordinance No. 2024-
Page 2 of 5
WHEREAS, the City desires to add Chapter 21.32 (Density Bonus) of the NBMC
in furtherance of Policy Action 4C (Density Bonus and Incentives for Affordable
Housing) of the 2021-2029 6th Cycle Housing Element to ensure consistency between
the State Density Bonus Law and the Coastal Act;
WHEREAS, the City Council initiated Local Coastal Program Amendment No.
LC2020-004 ("LCP Amendment No. LC2020-004") on April 14, 2020, pursuant to
Resolution No. 2020-36;
WHEREAS, pursuant to Section 13515 (Public Participation and Agency
Coordination Procedures) of the California Code of Regulations Title 14, Division 5.5,
Chapter 8, Subchapter 2, Article 5 ("Section 13515"), drafts of LCP Amendment No.
LC2020-004 were made available and a Notice of Availability was distributed at least six
weeks prior to the anticipated final action date;
WHEREAS, the Planning Commission opened the public hearing to consider
LCP Amendment No. LC2020-004 on July 7, 2022, and continued the hearing to July
21, 2022 in the Council Chambers located at 100 Civic Center Drive, Newport Beach,
California. A notice of time, place and purpose of the public hearings was given in
accordance with Government Code Section 54950 et seq. ("Ralph M. Brown Act") and
Chapter 21.62 (Public Hearings) of the NBMC;
WHEREAS, at the continued hearing on July 21, 2022, evidence, both written
and oral, was presented to, and considered by, the Planning Commission;
WHEREAS, at the conclusion of the continued hearing, the Planning
Commission adopted Resolution No. PC2022-019 by a unanimous vote (7 ayes, 0
nays), recommending approval of LCP Amendment No. LC2020-004 to the City
Council;
WHEREAS, a duly noticed public hearing was held by the City Council on
August 23, 2022, in the Council Chambers located at 100 Civic Center Drive, Newport
Beach, California. A notice of time, place and purpose of the public hearing was given in
accordance with the Ralph M. Brown Act and Chapter 21.62 (Public Hearings) of the
NBMC and Section 13515. Evidence, both written and oral, was presented to, and
considered by, the City Council at this public hearing;
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Ordinance No. 2024-
Page 3 of 5
WHEREAS, the City Council adopted Resolution No. 2022-56 by unanimous
vote (6 ayes, 0 nays) on August 23, 2022, authorizing staff to submit LCP Amendment
No. LC2020-004 to the Coastal Commission to add Chapter 21.32 (Density Bonus) to
Title 21 of the NBMC;
WHEREAS, the Coastal Commission approved and certified LCP Amendment
No. LC2020-004, with modifications (LCP-5-NPB-22-0056-1 Part A), as being
consistent with the California Coastal Act at its April 12, 2024, meeting; and
WHEREAS, the City Council held a public hearing on September 10, 2024, in
the Council Chambers located at 100 Civic Center Drive, Newport Beach, California. A
notice of time, place and purpose of the public hearing was given in accordance with the
Ralph M. Brown Act and Chapter 21.62 (Public Hearings) of the NBMC. Evidence, both
written and oral, was presented to, and considered by, the City Council at this public
hearing.
NOW THEREFORE, the City Council of the City of Newport Beach ordains as
follows:
Section 1: The City Council hereby adopts LCP Amendment No. LC2020-004
adding Chapter 21.32 (Density Bonus) of the NBMC as modified by the Coastal
Commission and set forth in Exhibit "A."
Section 2: The LCP, including LCP Amendment No. LC2020-004, will be
carried out fully in conformity with the California Coastal Act.
Section 3: The recitals provided in this ordinance are true and correct and are
incorporated into the substantive portion of this ordinance.
Section 4: The City Council hereby authorizes City staff to submit this
ordinance for a determination by the Executive Director of the Coastal Commission that
this action is legally adequate to satisfy the specific requirements of the Coastal
Commission's April 12, 2024, action on LCP Amendment Request No. LCP-5-NPB-22-
0056-1 Part A) (Density Bonus Regulations).
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Ordinance No. 2024-
Page 4 of 5
Section 5: This ordinance shall become effective after the Executive Director
of the Coastal Commission certifies that this ordinance complies with the Coastal
Commission's April 12, 2024, action on LCP Amendment Request No. LCP-5-NPB-22-
0056-1 Part A) (Density Bonus Regulations); and thirty (30) calendar days, or more,
have passed since the adoption of this ordinance.
Section 6: If any section, subsection, sentence, clause or phrase of this
ordinance is for any reason held to be invalid or unconstitutional, such decision shall not
affect the validity or constitutionality of the remaining portions of this ordinance. The
City Council hereby declares that it would have passed this ordinance and each section,
subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or
more sections, subsections, sentences, clauses or phrases be declared invalid or
unconstitutional.
Section 7: The City Council finds the adoption of this ordinance is exempt from
environmental review under the California Environmental Quality Act ("CEQA") pursuant
to Section 21065 of the California Public Resources Code and Sections 15060 (c)(2),
15060 (c)(3), and 15378 of the California Code of Regulations Title 14, Division 6,
Chapter 3 ("CEQA Guidelines"). This action is also exempt under CEQA Guidelines
Section 15061(b)(3), which states that CEQA applies only to projects which have the
potential for causing a significant effect on the environment. Lastly, pursuant to CEQA
Guidelines Section 15265(a)(1), local governments are exempt from the requirements of
CEQA in connection with the adoption of a Local Coastal Plan amendment. Local
Coastal Plan Amendment No. LC2020-004 itself does not authorize development that
would directly result in physical change to the environment.
Section 8: Except as expressly modified in this ordinance, all other sections,
subsections, terms, clauses and phrases set forth in the NBMC shall remain unchanged
and shall be in full force and effect.
Section 9: The Mayor shall sign and the City Clerk shall attest to the passage
of this ordinance. The City Clerk shall cause the ordinance, or a summary thereof, to be
published pursuant to City Charter Section 414.
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Ordinance No. 2024-
Page 5 of 5
This ordinance was introduced at a regular meeting of the City Council of the City
of Newport Beach held on the 10th day of September, 2024, and adopted on the 24th
day of September, 2024, by the following vote, to -wit:
AYES:
NAYS:
ABSENT:
WILL O'NEILL, MAYOR
ATTEST:
LEILANI I. BROWN, CITY CLERK
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
AARON ARP, UITY ATTORNEY
Attachment: Exhibit A - Local Coastal Program Amendment No. LC2020-004
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Exhibit A
Local Coastal Program Amendment No. LC2020-004
Section 1: Subsection (C)(1) of Section 21.12.020 (Rules of Interpretation) of Chapter
21.12 (Interpretation of Implementation Plan Provisions) of Title 21 (Local Coastal Program
Implementation Plan) of the NBMC is hereby amended to read as follows:
C. Calculations.
Residential Density. Except for projects that include a density bonus in accordance with
Chapter 21.32 (Density Bonus), when the number of dwelling units allowed on a site is
calculated based on the minimum site area per dwelling unit, any fraction of a unit shall be
rounded down to the next lowest whole number. For example, where a residential zoning
district requires a minimum site area per dwelling unit of one thousand five hundred (1,500)
square feet, a site of ten thousand (10,000) square feet would be allowed six (6) dwelling
units (10,000 sq. fIJ1,500 sq. ft. per dwelling unit = 6.66 dwelling units, which is rounded
down to six dwelling units).
Section 2: Chapter 21.32 (Density Bonus) of Title 21 (Local Coastal Program
Implementation Plan) of the NBMC is hereby added to read as follows:
Chapter 21.32
DENSITY BONUS
Sections:
21.32.010 Purpose.
21.32.020 Coastal Act Consistency.
21.32.030 Density Bonus, Concessions, Incentives, and Waivers.
21.32.040 Approval Process.
21.32.010 Purpose.
The purpose of this chapter is to provide a means for granting density bonuses and incentives
in compliance with State Density Bonus Law, Government Code Sections 65915 et. seq., as
the same may be amended from time to time.
21.32.020 Coastal Act Consistency.
A. California Government Code Section 65915(m) provides that density bonus law shall not
be construed to supersede or in any way alter or lessen the effect or application of the
California Coastal Act of 1976. Any density bonus, concessions, incentives, waivers or
reductions of development standards, and parking ratios to which the applicant is entitled
under California State Government Code Section 65915 et. seq., shall be permitted in a
manner that is consistent with that section and the California Coastal Act of 1976 (Division
20 (commencing with Section 30000) of the Public Resources Act Code).
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B. A requested density bonus and any requested incentive, concession, waiver, modification,
or modified parking standard shall comply with all applicable standards and use regulations
of the certified Local Coastal Program Implementation Plan, with the exception of the
development standards waived, reduced, or modified through density bonus provisions. In
no case shall the coastal resource protection development regulations of Sections
21.28.040 (Bluff (B) Overlay District), 21.28.050 (Canyon (C) Overlay District), 21.30.015(D)
(Waterfront Development), 21.30.015(E)(2) (Development in Shoreline Hazardous Areas)
and 21.30.100 (Scenic and Visual Quality Protection), or Chapters 21.30A (Public Access
and Recreation) and 21.30B (Habitat Protection) be waived, reduced, or modified.
21.32.030 Density Bonuses, Concessions, Incentives, and Waivers
Unless restricted by Section 21.32.020 (Coastal Act Consistency), eligible housing
development or mixed -use development projects may be granted density bonuses,
concessions, incentives, and waivers pursuant to California State Government Code Section
65915 et. seq., which may be amended from time to time.
21.32.040 Approval Process.
An applicant requesting a density bonus, incentive, concession, or waiver pursuant to this
chapter shall require approval of a coastal development permit or waiver pursuant to Chapter
21.52 (Coastal Development Review Procedures).
Section 3: Section 21.70.020 (Definitions of Specialized Terms and Phrases) of Title 21
(Local Coastal Program Implementation Plan) of the NBMC is amended as follows with all other
definitions to remain unchanged:
"Density bonus" means a density increase over the maximum allowable density under the
applicable coastal zoning district and Coastal Land Use Plan as of the date of application.
Section 4: The definitions of "affordable housing agreement," "low-income household,"
"moderate -income household," and "very low-income household" in Section 21.70.020
(Definitions of Specialized Terms and Phrases) of Title 21 (Local Coastal Program
Implementation Plan) are deleted in their entirety.
Section 5: Footnote 7 of Table 21.18-4 of Section 21.18.030 (Residential Coastal Zoning
Districts General Development Standards) of Title 21 (Local Coastal Program Implementation
Plan) of the NBMC is amended as follows:
(7) Density bonuses may be granted in compliance with Chapter 21.32 (Density Bonus).
Sections 6: Footnote 6 of Table 21.22-3 of Section 21.22.030 (Mixed -Use Coastal Zoning
Districts General Development Standards) of Title 21 (Local Coastal Program Implementation
Plan) of the NBMC is amended as follows:
(6) Density bonuses may be granted in compliance with Chapter 21.32 (Density Bonus).
Sections 7: Footnote 7 of Table 21.22-4 of Section 21.22.030 (Mixed -Use Coastal Zoning
Districts General Development Standards) of Title 21 (Local Coastal Program Implementation
Plan) of the NBMC is amended as follows:
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(7) Density bonuses may be granted in compliance with Chapter 21.32 (Density Bonus).
Section 8: Subsection (E)(1) of Section 21.30A.050 (Development Standards) of Chapter
21.30A (Public Access and Recreation) of Title 21 (Local Coastal Program Implementation Plan)
of the NBMC is hereby amended to read as follows:
E. Parking
1. Off -Street Parking Spaces Required. Any required off-street parking spaces shall be provided
in compliance with Chapter 21.40 (Off -Street Parking). However, modifications to these standards
may be permitted pursuant to Chapter 21.32 (Density Bonus) in situations where reduced parking
requirements would not significantly impact public access to the shoreline.
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Attachment B
State Density Bonus Law
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State of California
GOVERNMENT CODE
Section 65915
65915. (a) (1) When an applicant seeks a density bonus for a housing development
within, or for the donation of land for housing 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. Except as otherwise provided in subdivision
(s), failure to adopt an ordinance shall not relieve a city, county, or city and county
from complying with this section.
(2) A local government shall not condition the submission, review, or approval of
an application pursuant to this chapter on the preparation of an additional report or
study that is not otherwise required by state law, including this section. This
subdivision does not prohibit a local government from requiring an applicant to provide
reasonable documentation to establish eligibility for a requested density bonus, as
described in subdivision (b), 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 the following:
(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 for the 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 timelines specified 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 is eligible.
(III) If the applicant requests incentives or concessions pursuant to subdivision (d)
or waivers or reductions of development standards pursuant to subdivision (e), whether
the applicant has provided adequate information for the local government to make a
determination as to those incentives, concessions, waivers, or reductions of
development standards.
(ii) Any determination required by this subparagraph shall be based on the
development project at the time the application is deemed complete. The local
government shall adjust the amount of density bonus and parking ratios awarded
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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 parking ratios, as described in
subdivision (p), if an applicant for a housing development seeks and agrees to construct
a housing development, excluding any units permitted by the density bonus awarded
pursuant to this section, that will contain at least any one of the following:
(A) Ten percent of the total units of a housing development, including a shared
housing building development, for rental or sale 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 or sale 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 park that limits residency based on age
requirements for housing for older persons pursuant to Section 798.76 or 799.5 of the
Civil Code. 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 the public
for purchase.
(E) Ten percent of the total units of a housing development for transitional foster
youth, as defined in Section 66025.9 of the Education Code, disabled veterans, as
defined in Section 18541, or homeless persons, as defined in the federal
McKinney-Vento Homeless Assistance Act (42 U.S.C. Sec. 11301 et seq.). The units
described in this subparagraph are subject to a recorded affordability restriction of
55 years and shall be provided at the same affordability level as very low income
units.
(F) (i) Twenty percent of the total units for lower income students in a student
housing development that meets the following requirements:
(I) All units in the student housing development shall be used exclusively for
undergraduate, graduate, or professional 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 order to be
eligible under this subclause, 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 or
more institutions of higher education for the institution or institutions to occupy all
units of the student housing development with students from that institution or
institutions. An operating agreement or master lease entered into pursuant to this
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subclause is not violated or breached if, in any subsequent year, there are insufficient
students enrolled in an institution of higher education to fill all units in the student
housing development.
(II) The applicable 20-percent units shall be used for lower income students.
(I11) The rent provided in the applicable units of the development for lower income
students shall be calculated at 30 percent of 65 percent of the area median income for
a single -room occupancy unit type.
(IV) The development shall provide priority for the applicable affordable units for
lower income students experiencing homelessness. A homeless service provider, as
defined in paragraph (3) of subdivision (e) of Section 103577 of the Health and Safety
Code, or institution of higher education that has knowledge of a person's homeless
status may verify 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 this section means one rental bed and its pro
rata share of associated common area facilities. The units described in this
subparagraph are 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 a manager'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 for moderate -income households, as defined in Section 50053
of the Health and Safety Code. For purposes of this subparagraph, "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 a density 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 all very low and low-income rental units
that qualified the applicant for the award of the density bonus for 55 years or a longer
period of time if required by the construction or mortgage financing assistance
program, mortgage insurance program, or rental subsidy program.
(B) (i) Except as otherwise provided in clause (ii), rents for the lower income
density bonus units shall be set at an affordable 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 all units 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 in Section 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 rent levels for lower income households, as those rents
and incomes are determined by the California Tax Credit Allocation Committee.
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(2) (A) An applicant shall agree to ensure, and the city, county, or city and county
shall ensure, that a for -sale unit that qualified the applicant for the award of the density
bonus meets one of the following conditions:
(i) The unit is initially sold to and occupied by a person or family of very low,
low, or moderate income, as required, and it is offered at an affordable housing cost,
as that cost is defined in Section 50052.5 of the Health and Safety Code and is subject
to an equity sharing agreement.
(ii) If the unit is not purchased by an income -qualified person or family within
180 days after the issuance of the certificate of occupancy, the unit is purchased by
a qualified nonprofit housing corporation that meets all of the following requirements
pursuant to a recorded contract that satisfies all of the requirements specified in
paragraph (10) of subdivision (a) of Section 402.1 of the Revenue and Taxation Code:
(I) The nonprofit corporation has a determination letter from the Internal Revenue
Service affirming its tax-exempt status pursuant to Section 501(c)(3) of the Internal
Revenue Code and is not a private foundation as that term is defined in Section 509
of the Internal Revenue Code.
(II) The nonprofit corporation is based in California.
(III) All of the board members of the nonprofit corporation have their primary
residence in California.
(IV) The primary activity of the nonprofit corporation is the development and
preservation of affordable home ownership housing in California that incorporates
within their contracts for initial purchase a repurchase option that requires a subsequent
purchaser of the property that desires to resell or convey the property to offer the
qualified nonprofit corporation the right to repurchase the property prior to selling or
conveying that property to any other purchaser pursuant to an equity sharing agreement
or affordability restrictions on the sale and conveyance of the property that ensure
that the property will be preserved for lower income housing for at least 45 years for
owner -occupied housing units and will be sold or resold only to persons or families
of very low, low, or moderate income, as defined in Section 50052.5 of the Health
and Safety Code.
(B) For purposes of this paragraph, a "qualified nonprofit housing corporation" is
a nonprofit housing corporation organized pursuant to Section 501(c)(3) of the Internal
Revenue Code that has received a welfare exemption under Section 214.15 of the
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 recapture
provisions 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's proportionate 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,
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as defined in clause (iv), which amount shall be used within five years for any 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 the home at the time of initial sale minus the initial
sale price to the moderate -income household, plus the amount of any downpayment
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 the ratio 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) of subparagraph (A) the local government may
enter into a contract with the qualified nonprofit housing corporation under which
the qualified nonprofit housing corporation would recapture any initial subsidy and
its proportionate share of appreciation if the qualified nonprofit housing corporation
is required to use 100 percent of the proceeds to promote homeownership for lower
income households as defined by Section 50079.5 of the Health and Safety Code
within the jurisdiction 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 the housing development is proposed on any
property that includes a parcel or parcels on which rental dwelling units are located
or, if the dwelling units have been vacated or demolished in the five-year period
preceding the application, have been subject to a recorded covenant, ordinance, or
law that restricts rents to levels affordable to persons and families of lower or very
low income; subject to any other form of rent or price control through a public entity's
valid exercise of its police power; or occupied by lower or very low income
households, unless the proposed housing development replaces those units, and either
of the following applies:
(i) The proposed housing development, inclusive of the units replaced pursuant to
this paragraph, contains affordable units 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 lower or 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 housing development shall provide at least the same
number of units of equivalent size to be made available at affordable rent or affordable
housing cost to, and occupied by, persons and families in the same or lower income
category as those households in occupancy. If the income category of the household
in occupancy is not known, it shall be rebuttably presumed that lower income renter
households occupied these units in the same proportion of lower income renter
households to all renter households within the jurisdiction, as determined by the most
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recently available data from the United States Department of Housing and Urban
Development's Comprehensive Housing Affordability Strategy database. For
unoccupied dwelling units described in subparagraph (A) in a development with
occupied units, the proposed housing development shall provide units of equivalent
size to be made available at affordable rent or affordable housing cost to, and occupied
by, persons and families in the same or lower income category as the last household
in occupancy. If the income category of the last household in occupancy is not known,
it shall be rebuttably presumed that lower income renter households occupied these
units in the same proportion of lower income renter households to all renter households
within the jurisdiction, as determined by the most recently available data from the
United States Department of Housing and Urban Development's Comprehensive
Housing Affordability Strategy database. 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 at least 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 period preceding the application, the proposed housing
development shall provide at least the same number of units of equivalent size as
existed at the highpoint of those units in the five-year period preceding the application
to be made available at affordable rent or affordable housing cost to, and occupied
by, persons and families in the same or lower income category as those persons and
families in occupancy at that time, if known. If the incomes of the persons and families
in occupancy at the highpoint is not known, it shall be rebuttably presumed that
low-income and very low income renter households occupied these units in the same
proportion of low-income and very low income renter households to all renter
households within the jurisdiction, as determined by the most recently available data
from the United States Department of Housing and Urban Development's
Comprehensive Housing Affordability Strategy database. 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 at least 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 exercise
of its police power and that is or was occupied by persons or families above lower
income, the city, county, or city and county may do either of the following:
(i) Require that the replacement units be made available at affordable rent or
affordable housing cost to, and occupied by, low-income persons or families. If the
replacement units will be rental dwelling units, these units shall be subject to a recorded
affordability restriction for at least 55 years. If the proposed development is for -sale
units, the units replaced shall be subject to paragraph (2).
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(ii) Require that the units be replaced in compliance with the jurisdiction's rent or
price control ordinance, provided that each unit described in subparagraph (A) is
replaced. Unless otherwise required by the jurisdiction's rent or price control ordinance,
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 total number 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 the applicant'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 proposal for the specific incentives or concessions
that the applicant requests pursuant to this section, and may request a meeting with
the city, county, or city and county. The city, county, or city and county shall grant
the concession or incentive requested by the applicant unless the city, county, or city
and county makes a written finding, based upon substantial evidence, of any of the
following:
(A) The concession or incentive does not result in identifiable and actual cost
reductions, consistent with subdivision (k), 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).
(B) The concession or incentive would have a specific, adverse impact, as defined
in paragraph (2) of subdivision (d) of Section 65589.5, upon public health and safety
or on any real property that is listed in the California Register of Historical Resources
and for which there is no feasible method to satisfactorily mitigate or avoid the specific,
adverse impact without rendering the development unaffordable to low-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 a
development 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 income households, at least 10 percent for very low income
households, or at least 20 percent for persons and families of moderate 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 income households, at least 15 percent for very low income
households, or at least 30 percent for persons and families of moderate 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 a designated
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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 in a student housing development.
(F) Four incentives or concessions for projects that include at least 16 percent of
the units for very low income households or 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 density bonus, incentive, or concession. If a court
finds that the refusal to grant a requested density bonus, incentive, or concession is
in violation of this section, the court shall award the plaintiff reasonable attorney's
fees and costs of suit. This subdivision shall not be interpreted to require a local
government to grant an incentive or concession that has a specific, adverse impact,
as defined in paragraph (2) of subdivision (d) of Section 65589.5, upon health or
safety, and for which there is no feasible method to satisfactorily mitigate or avoid
the specific, adverse impact. This subdivision shall not be interpreted to require a
local government to grant an incentive or concession that would have an adverse
impact on any real property that is listed in the California Register of Historical
Resources. The city, county, or city and county shall establish procedures for carrying
out this 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 physically precluding the construction of a
development meeting the criteria of subdivision (b) at the densities or with the
concessions or incentives permitted by this section. Subject to paragraph (3), an
applicant may submit to a city, county, or city and county a proposal for the waiver
or reduction of development standards that will have the effect of physically precluding
the construction of a development meeting the criteria of subdivision (b) at the densities
or with the concessions or incentives permitted under this section, and may request
a meeting with the city, county, or city and county. If a court finds that the refusal to
grant a waiver or reduction of development standards is in violation of this section,
the court shall award the plaintiff reasonable attorney's fees and costs of suit. This
subdivision shall not be interpreted to require a local government to waive or reduce
development standards if the waiver or reduction would have a specific, adverse
impact, as defined in paragraph (2) of subdivision (d) of Section 65589.5, upon health
or safety, and for which there is no feasible method to satisfactorily mitigate or avoid
the specific, adverse impact. This subdivision shall not be interpreted to require a
local government to waive or reduce development standards that would have an
adverse impact on any real property that is listed in the California Register of Historical
Resources, or to grant any waiver or reduction that would be contrary to state or
federal law.
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(2) A proposal for the waiver or reduction of development standards pursuant to
this subdivision shall neither reduce nor increase 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) of subparagraph (D) of paragraph (3) of subdivision
(f) shall only be eligible for a waiver or reduction of development standards as provided
in subparagraph (D) of paragraph (2) of subdivision (d) and clause (ii) of subparagraph
(D) of paragraph (3) of subdivision (f), unless the city, county, or city and county
agrees to additional waivers or reductions of development standards.
(f) For the purposes of this chapter, "density bonus" means a density increase over
the otherwise maximum allowable gross residential density as of the date of application
by the applicant to the city, county, or city and county, or, if elected by the applicant,
a lesser percentage of density increase, including, but not limited to, no increase in
density. The amount of density increase to which the applicant is entitled shall vary
according to the amount by which the percentage of affordable housing units 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 bonus shall 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 bonus shall be calculated as follows:
Percentage Very Low Income Units Percentage Density Bonus
5 20
6 22.5
7 25
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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 density bonus 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 density bonus 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 density bonus 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 following shall apply:
(i) Except as otherwise provided in clauses (ii) and (iii), the density bonus shall
be 80 percent of the number of units for lower income households.
(ii) If the housing development is located within one-half mile of a major transit
stop, the city, county, or city and county shall 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 bonus shall 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
17-24
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 a density bonus shall not require, or be interpreted,
in and of itself, to require a general plan amendment, local coastal plan amendment,
zoning change, or other discretionary approval.
(g) (1) When an applicant for a tentative subdivision map, parcel map, or other
residential development approval donates land to a city, county, or city and county
in accordance with this subdivision, the applicant shall be entitled to a 15-percent
increase above the otherwise maximum allowable residential density for the entire
development, as follows:
Percentage Very Low Income
10
11
12
13
14
15
16
17
18
Percentage Density Bonus
15
16
17
18
19
20
21
22
23
17-25
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 combined mandated 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 this subdivision shall be construed to enlarge or
diminish the authority of a city, county, or city and county to require a developer to
donate land as a condition of development. An applicant shall be eligible for the
increased density bonus described in this subdivision 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, parcel map, or residential development application.
(B) The developable acreage and zoning classification of the land being transferred
are sufficient to permit construction of units affordable to very low income households
in an amount not less than 10 percent of the number of residential units of the 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 the appropriate general plan designation, is
appropriately zoned with appropriate development standards for development at the
density described in paragraph (3) of subdivision (c) of Section 65583.2, and is or
will be served by adequate public facilities and infrastructure.
(D) The transferred land shall have all of the permits and approvals, other than
building permits, necessary for the development of the very low income housing units
on the transferred land, not later than the date of approval of the final subdivision
map, parcel map, or residential development application, except that the local
government may subject the proposed development to subsequent design review to
the extent authorized by subdivision (i) of Section 65583.2 if the design 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 of the units consistent with paragraphs (1) and (2)
of subdivision (c), which shall be recorded on the property at the time of the transfer.
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(F) The land is transferred to the local agency or to a housing developer approved
by the local agency. The local agency may 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, within one -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 the final 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, or city 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 the amount of square feet in the childcare facility.
(B) An additional concession or incentive that contributes significantly to the
economic feasibility of the construction of the childcare facility.
(2) The city, county, or city and county shall require, as a condition of approving
the housing development, that the following occur:
(A) The childcare facility shall remain in operation for a period of time that is as
long as or longer than the period of time during 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 units
that are required for very low income households, lower income households, or
families of moderate income pursuant to subdivision (b).
(3) Notwithstanding any requirement of this subdivision, a city, county, or city
and county 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.
(4) "Childcare facility," as used in this section, means a child daycare facility other
than a family daycare home, including, but not 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, including mixed -use developments. For the purposes
of this section, "housing development" also includes a subdivision or common interest
development, as defined in Section 4100 of the Civil Code, approved by a city, county,
or city and county and consists of residential units or unimproved residential lots and
either a project to substantially rehabilitate and convert an existing commercial building
to residential use or the substantial rehabilitation of an existing multifamily dwelling,
as defined in subdivision (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
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of one development application, but do not have to be based upon individual
subdivision maps or parcels. The density bonus shall be permitted in geographic areas
of the housing development other than the areas where the units for the lower income
households are located.
0) (1) The granting of a concession or incentive shall not require or be interpreted,
in and of itself, to require a general plan amendment, local coastal plan amendment,
zoning change, study, or other discretionary approval. For purposes of this subdivision,
"study" does not include reasonable documentation to establish eligibility for the
concession or incentive or to demonstrate that the incentive or concession meets the
definition set forth in subdivision (k). This provision is declaratory of existing law.
(2) Except as provided in subdivisions (d) and (e), the granting of a density bonus
shall not require or be interpreted to require 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 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, 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 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.
(3) Other regulatory incentives or concessions proposed by the developer or the
city, county, or city and 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).
(0 Subdivision (k) does not limit or require the provision of direct financial
incentives for the housing development, including the provision 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 the applicant is entitled under this section shall be permitted in a manner that
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is consistent with this section and Division 20 (commencing with Section 30000) of
the Public Resources Code.
(n) If permitted by local ordinance, nothing in this section shall be construed to
prohibit a city, county, or city and county from granting a density bonus greater than
what is described in this section for a development that meets the requirements of
this section or from granting a proportionately lower density bonus than what is
required by this section for developments that do not 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 City
and County of San Francisco.
(2) "Development standard" includes a site or construction condition, including,
but not limited to, a height limitation, a setback requirement, a floor area ratio, an
onsite open -space requirement, a minimum lot area per unit requirement, or a parking
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 that is adopted by the local government or that is enacted by the local
government's electorate exercising its local initiative or referendum power, whether
that power is derived from the California Constitution, statute, or the charter or
ordinances of the local government.
(3) "Located within one-half mile of a major transit stop" means that any point on
a proposed development, for which an applicant seeks a density bonus, other incentives
or concessions, waivers or reductions of development standards, or a vehicular parking
ratio pursuant to this section, is within one-half mile of any point on the property on
which a major transit stop 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 for Cal Grant A or Cal Grant B award
recipients as set forth in paragraph (1) of subdivision (k) of Section 69432.7 of the
Education 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 enrolled or by
the California Student Aid Commission that the student receives or is eligible for
financial aid, including an institutional grant 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 greatest
number of units allowed under the zoning ordinance, specific plan, or land use element
of the general plan, or, if a range of density is permitted, means the greatest number
of units allowed by the specific zoning range, specific plan, or land use element of
the general plan applicable to the project. Density shall be determined using dwelling
17-29
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 to the 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 of any nonresidential component, and parking
requirements, unless not required for the base project. Parking requirements shall
include considerations regarding number of spaces, location, design, type, and
circulation. A developer may provide a base density study and the local agency shall
accept it, provided that it includes all applicable objective development standards.
(B) Maintaining the same average unit size and other project details relevant to
the base density study, excepting those that 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 and one or more common kitchens and dining
areas designed for permanent residence of more than 30 days by its tenants. The
kitchens and dining areas within the shared housing building shall be able to adequately
accommodate all residents. If a local ordinance further restricts the attributes of a
shared housing building beyond the requirements established in this section, the local
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 those dwelling units do not occupy more than 25
percent of the floor area of the shared housing building. A shared housing building
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 in Section
R304 of the California Residential Code (Part 2.5 of Title 24 of the California Code
of Regulations), and complies with the definition of "guestroom" in Section R202 of
the California Residential Code. If a local ordinance further restricts the attributes of
a shared housing building beyond the requirements established in this section, the
local definition shall apply 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 greater density bonus.
(ii) Includes a unit designated to satisfy an inclusionary zoning requirement of a
city, county, or city and county.
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(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 the existing residential development generates
vehicle miles traveled per capita that is below 85 percent of either regional vehicle
miles traveled per capita or city vehicle miles traveled per capita. For purposes of this
paragraph, "area" may include a travel analysis zone, hexagon, or grid. For the
purposes of determining "regional vehicle miles traveled per capita" pursuant to this
paragraph, a "region" is the entirety of incorporated and unincorporated areas governed
by a multicounty or single -county metropolitan planning organization, or the entirety
of the incorporated and unincorporated areas of an individual county that is 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 county shall not require a vehicular parking
ratio, inclusive of parking for persons with a disability and guests, of a development
meeting 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 housing developments 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 located within 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, inclusive of parking for persons with a disability
and guests, that exceeds 0.5 spaces per unit. Notwithstanding paragraph (1), if a
development includes at least 40 percent moderate -income units for housing
developments meeting the criteria of subparagraph (D) of paragraph (1) of subdivision
(b), is located within one-half mile of a major transit stop, as defined in subdivision
(b) of Section 21155 of the Public Resources Code, and the residents of the
development have 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, inclusive of parking for persons with a disability
and guests, that exceeds 0.5 spaces per bedroom.
(B) For purposes of this subdivision, "unobstructed access to the major transit
stop" means a resident is able to access the major transit stop without encountering
natural or constructed impediments. For purposes of this subparagraph, "natural or
constructed impediments" includes, but is not limited to, freeways, rivers, mountains,
and bodies of water, but does not include residential structures, shopping centers,
parking lots, or rails used for transit.
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(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 if the 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 major transit 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 with Sections 51.2 and 51.3 of the Civil Code
and the development has either paratransit service or unobstructed access, within
one-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 Safety Code, or a supportive housing development,
as defined in Section 50675.14 of the Health and Safety Code. A development that
is a special needs housing development shall have either paratransit service or
unobstructed access, within one-half mile, 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 be rounded up to the next whole number. For
purposes of this subdivision, a development may provide onsite parking through
tandem 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 the request of the applicant. An applicant may
request parking incentives or concessions beyond those provided in this subdivision
pursuant to subdivision (d).
(6) This subdivision does not preclude a city, county, or city and county from
reducing or eliminating a parking requirement for 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 an areawide or jurisdictionwide parking
study in the last seven years, then the city, county, or city and county may impose a
higher vehicular parking ratio not to exceed the ratio described in paragraph (1), based
upon substantial evidence found in the 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 of market -rate and subsidized developments, and the lower
rates of car ownership for low-income and very low income individuals, including
seniors and special needs individuals. The city, county, or city and county shall pay
the costs of any new study. The city, county, or city and county shall make findings,
based on a parking study completed in conformity with this paragraph, 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 which the applicant is entitled pursuant to
subdivision (d).
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(q) 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. The Legislature finds and declares that this provision is declaratory of existing
law.
(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 a housing program, or both an ordinance
and a housing program, that incentivizes the development of affordable housing that
allows for density bonuses that exceed the density bonuses required by the version
of this section effective through December 31, 2020, that city, county, or city and
county is not required to amend or otherwise update its ordinance or corresponding
affordable 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
adding this subdivision as set forth in subdivision (d), particularly subparagraphs (B)
and (C) of paragraph (2) of that subdivision, and the 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 require
any 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 or even eliminate subsidies for a particular
project by allowing a developer to include more total units in a project than would
otherwise be allowed by the local zoning ordinance in exchange for affordable units.
It further reaffirms that the intent is to cover 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 this subdivision to further incentivize the construction
of very low, low-, and moderate -income housing units. It is further the intent of the
Legislature in making these modifications to the Density Bonus Law to ensure that
any additional benefits conferred upon a developer are balanced with the receipt of
a public benefit in the form of adequate levels of affordable housing. The Legislature
further intends that these modifications will ensure that the Density Bonus Law creates
incentives for the construction of more housing across all areas of the state.
(v) (1) Provided that the resulting housing development would not restrict more
than 50 percent of the total units to moderate -income, lower income, or very low
income households, a city, county, or city and county shall grant an additional density
bonus calculated pursuant to paragraph (2) when an applicant proposes to construct
a housing development that conforms to the requirements of paragraph (1) of
subdivision (b), agrees to include additional rental or for -sale units affordable to very
17-33
low income households or moderate income households, and meets any of the
following requirements:
(A) The housing development conforms to the requirements of subparagraph (A)
of paragraph (1) of subdivision (b) and provides 24 percent of the total units to lower
income households.
(B) The housing development conforms to the requirements of subparagraph (B)
of paragraph (1) of subdivision (b) and provides 15 percent of the total units to very
low income households.
(C) The housing development conforms to the requirements of subparagraph (D)
of paragraph (1) of subdivision (b) and provides 44 percent of the total units to
moderate -income households.
(2) A city, county, or city and county shall grant an additional density bonus for
a housing development that meets the requirements of paragraph (1), calculated as
follows:
Percentage Very Low Income Units
5
6
7
8
9
10
Percentage Moderate -Income Units
5
6
7
8
9
10
11
12
13
14
15
Percentage Density Bonus
20
23.75
27.5
31.25
35
38.75
Percentage Density Bonus
20
22.5
25
27.5
30
32.5
35
38.75
42.5
46.25
50
(3) The increase required by paragraphs (1) and (2) shall be in addition to any
increase in density granted by subdivision (b).
(4) The additional density bonus required under this subdivision shall be calculated
using the number of units excluding any density bonus awarded by this section.
(Amended by Stats. 2023, Ch. 784, Sec. 1.3. (SB 713) Effective January 1, 2024.)
17-34
State of California
GOVERNMENT CODE
Section 65915.1
65915.1. For purposes of Section 65915, affordable housing impact fees, including
inclusionary zoning fees and in -lieu fees, shall not be imposed on a housing
development's affordable units.
(Added by Stats. 2021, Ch. 346, Sec. 1. (AB 571) Effective January 1, 2022.)
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State of California
GOVERNMENT CODE
Section 65915.2
65915.2. If permitted by local ordinance, nothing in Section 65915 shall be construed
to prohibit a city, county, or city and county from requiring an affordability period
longer than 55 years for any units that qualified the applicant for the award of the
density bonus developed in compliance with a local ordinance that requires, as a
condition of the development of residential units, that the development include a
certain percentage of units that are affordable to, and occupied by, low-income, lower
income, very low income, or extremely low income households and that will be
financed without low-income housing tax credits.
(Added by Stats. 2021, Ch. 348, Sec. 1. (AB 634) Effective January 1, 2022.)
17-36
State of California
GOVERNMENT CODE
Section 65915.5
65915.5. (a) When an applicant for approval to convert apartments to a condominium
project agrees to provide at least 33 percent of the total units of the proposed
condominium project to persons and families of low or moderate income as defined
in Section 50093 of the Health and Safety Code, or 15 percent of the total units of
the proposed condominium project to lower income households as defined in Section
50079.5 of the Health and Safety Code, and agrees to pay for the reasonably necessary
administrative costs incurred by a city, county, or city and county pursuant to this
section, the city, county, or city and county shall either (1) grant a density bonus or
(2) provide other incentives of equivalent financial value. A city, county, or city and
county may place such reasonable conditions on the granting of a density bonus or
other incentives of equivalent financial value as it finds appropriate, including, but
not limited to, conditions which assure continued affordability of units to subsequent
purchasers who are persons and families of low and moderate income or lower income
households.
(b) For purposes of this section, "density bonus" means an increase in units of 25
percent over the number of apartments, to be provided within the existing structure
or structures proposed for conversion.
(c) For purposes of this section, "other incentives of equivalent financial value"
shall not be construed to require a city, county, or city and county to provide cash
transfer payments or other monetary compensation but may include the reduction or
waiver of requirements which the city, county, or city and county might otherwise
apply as conditions of conversion approval.
(d) An applicant for approval to convert apartments to a condominium project may
submit to a city, county, or city and county a preliminary proposal pursuant to this
section prior to the submittal of any formal requests for subdivision map approvals.
The city, county, or city and county shall, within 90 days of receipt of a written
proposal, notify the applicant in writing of the manner in which it will comply with
this section. The city, county, or city and county shall establish procedures for carrying
out this section, which shall include legislative body approval of the means of
compliance with this section.
(e) Nothing in this section shall be construed to require a city, county, or city and
county to approve a proposal to convert apartments to condominiums.
(f) An applicant shall be ineligible for a density bonus or other incentives under
this section if the apartments proposed for conversion constitute a housing development
for which a density bonus or other incentives were provided under Section 65915.
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(g) An applicant shall be ineligible for a density bonus or any other incentives or
concessions under this section if the condominium project is proposed on any property
that includes a parcel or parcels on which rental dwelling units are or, if the dwelling
units have been vacated or demolished in the five-year period preceding the application,
have been subject to a recorded covenant, ordinance, or law that restricts rents to
levels affordable to persons and families of lower or very low income; subject to any
other form of rent or price control through a public entity's valid exercise of its police
power; or occupied by lower or very low income households, unless the proposed
condominium project replaces those units, as defined in subparagraph (B) of paragraph
(3) of subdivision (c) of Section 65915, and either of the following applies:
(1) The proposed condominium project, inclusive of the units replaced pursuant
to subparagraph (B) of paragraph (3) of subdivision (c) of Section 65915, contains
affordable units at the percentages set forth in subdivision (a).
(2) Each unit in the development, exclusive of a manager's unit or units, is
affordable to, and occupied by, either a lower or very low income household.
(h) Subdivision (g) does not apply to an applicant seeking a density bonus for a
proposed housing development if their application was submitted to, or processed by,
a city, county, or city and county before January 1, 2015.
(Amended by Stats. 2014, Ch. 682, Sec. 2. (AB 2222) Effective January 1, 2015.)
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State of California
GOVERNMENT CODE
Section 65915.7
65915.7. (a) When an applicant for approval of a commercial development has
entered into an agreement for partnered housing described in subdivision (c) to
contribute affordable housing through a joint project or two separate projects
encompassing affordable housing, the city, county, or city and county shall grant to
the commercial developer a development bonus as prescribed in subdivision (b).
Housing shall be constructed on the site of the commercial development or on a site
that is all of the following:
(1) Within the boundaries of the local government.
(2) In close proximity to public amenities including schools and employment
centers.
(3) Located within one-half mile of a major transit stop, as defined in subdivision
(b) of Section 21155 of the Public Resources Code.
(b) The development bonus granted to the commercial developer shall mean
incentives, mutually agreed upon by the developer and the jurisdiction, that may
include, but are not limited to, any of the following:
(1) Up to a 20-percent increase in maximum allowable intensity in the General
Plan.
(2) Up to a 20-percent increase in maximum allowable floor area ratio.
(3) Up to a 20-percent increase in maximum height requirements.
(4) Up to a 20-percent reduction in minimum parking requirements.
(5) Use of a limited-use/limited-application elevator for upper floor accessibility.
(6) An exception to a zoning ordinance or other land use regulation.
(c) For purposes of this section, the agreement for partnered housing shall be
between the commercial developer and the housing developer, shall identify how the
commercial developer will contribute affordable housing, and shall be approved by
the city, county, or city and county.
(d) For purposes of this section, affordable housing may be contributed by the
commercial developer in one of the following manners:
(1) The commercial developer may directly build the units.
(2) The commercial developer may donate a portion of the site or property
elsewhere to the affordable housing developer for use as a site for affordable housing.
(3) The commercial developer may make a cash payment to the affordable housing
developer that shall be used towards the costs of constructing the affordable housing
project.
(e) For purposes of this section, subparagraph (A) of paragraph (3) of subdivision
(c) of Section 65915 shall apply.
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(f) Nothing in this section shall preclude any additional allowances or incentives
offered to developers by local governments pursuant to law or regulation.
(g) If the developer of the affordable units does not commence with construction
of those units in accordance with timelines ascribed by the agreement described in
subdivision (c), the local government may withhold certificates of occupancy for the
commercial development under construction until the developer has completed
construction of the affordable units.
(h) In order to qualify for a development bonus under this section, a commercial
developer shall partner with a housing developer that provides at least 30 percent of
the total units for low-income households or at least 15 percent of the total units for
very low-income households.
(i) Nothing in this section shall preclude an affordable housing developer from
seeking a density bonus, concessions or incentives, waivers or reductions of
development standards, or parking ratios under Section 65915.
0) A development bonus pursuant to this section shall not include a reduction or
waiver of the requirements within an ordinance that requires the payment of a fee by
a commercial developer for the promotion or provision of affordable housing.
(k) A city or county shall submit to the Department of Housing and Community
Development, as part of the annual report required by Section 65400, information
describing a commercial development bonus approved pursuant to this section,
including the terms of the agreements between the commercial developer and the
affordable housing developer, and the developers and the local jurisdiction, and the
number of affordable units constructed as part of the agreements.
(n For purposes of this section, "partner" means formation of a partnership, limited
liability company, corporation, or other entity recognized by the state in which the
commercial development applicant and the affordable housing developer are each
partners, members, shareholders or other participants, or a contract or agreement
between a commercial development applicant and affordable housing developer for
the development of both the commercial and the affordable housing properties.
(m) This section shall remain in effect only until January 1, 2028, and as of that
date is repealed.
(Added by Stats. 2022, Ch. 637, Sec. 1. (AB 1551) Effective January 1, 2023. Repealed as of January
1, 2028, by its own provisions.)
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State of California
GOVERNMENT CODE
Section 65916
65916. Where there is a direct financial contribution to a housing development
pursuant to Section 65915 through participation in cost of infrastructure, write -down
of land costs, or subsidizing the cost of construction, the city, county, or city and
county shall assure continued availability for low- and moderate -income units for 30
years. When appropriate, the agreement provided for in Section 65915 shall specify
the mechanisms and procedures necessary to carry out this section.
(Added by Stats. 1979, Ch. 1207.)
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State of California
GOVERNMENT CODE
Section 65917
65917. In enacting this chapter it is the intent of the Legislature that the density
bonus or other incentives offered by the city, county, or city and county pursuant to
this chapter shall contribute significantly to the economic feasibility of lower income
housing in proposed housing developments. In the absence of an agreement by a
developer in accordance with Section 65915, a locality shall not offer a density bonus
or any other incentive that would undermine the intent of this chapter.
(Amended by Stats. 2001, Ch. 115, Sec. 14. Effective January 1, 2002.)
17-42
State of California
GOVERNMENT CODE
Section 65917.2
65917.2. (a) As used in this section, the following terms shall have the following
meanings:
(1) "Eligible housing development" means a development that satisfies all of the
following criteria:
(A) The development is a multifamily housing development that contains five or
more residential units, exclusive of any other floor area ratio bonus or incentive or
concession awarded pursuant to this chapter.
(B) The development is located within one of the following:
(i) An urban infill site that is within a transit priority area.
(ii) One-half mile of a major transit stop.
(C) The site of the development is zoned to allow residential use or mixed -use
with a minimum planned density of at least 20 dwelling units per acre and does not
include any land zoned for low density residential use or for exclusive nonresidential
use.
(D) The applicant and the development satisfy the replacement requirements
specified in subdivision (c) of Section 65915.
(E) The development includes at least 20 percent of the units, excluding any
additional units allowed under a floor area ratio bonus or other incentives or
concessions provided pursuant to this chapter, with an affordable housing cost or
affordable rent to, and occupied by, persons with a household income equal to or less
than 50 percent of the area median income, as determined pursuant to Section 50093
of the Health and Safety Code, and subject to an affordability restriction for a minimum
of 55 years.
(F) The development complies with the height requirements applicable to the
underlying zone. A development shall not be eligible to use a floor area ratio bonus
or other incentives or concessions provided pursuant to this chapter to relieve the
development from a maximum height limitation.
(2) "Floor area ratio' means the ratio of gross building area of the eligible housing
development, excluding structured parking areas, proposed for the project divided by
the net lot area. For purposes of this paragraph, "gross building area" means the sum
of all finished areas of all floors of a building included within the outside faces of its
exterior walls.
(3) "Floor area ratio bonus" means an allowance for an eligible housing
development to utilize a floor area ratio over the otherwise maximum allowable
density permitted under the applicable zoning ordinance and land use elements of the
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general plan of a city or county, calculated pursuant to paragraph (2) of subdivision
(b).
(4) "Major transit stop" has the same meaning as defined in Section 21155 of the
Public Resources Code.
(5) "Transit priority area" has the same meaning as defined in Section 21099 of
the Public Resources Code.
(b) (1) A city council, including a charter city council or the board of supervisors
of a city and county, or county board of supervisors may establish a procedure by
ordinance to grant a developer of an eligible housing development, upon the request
of the developer, a floor area ratio bonus, calculated as provided in paragraph (2), in
lieu of a density bonus awarded on the basis of dwelling units per acre.
(2) In calculating the floor area ratio bonus pursuant to this section, the allowable
gross residential floor area in square feet shall be the product of all of the following
amounts:
(A) The allowable residential base density in dwelling units per acre.
(B) The site area in square feet, divided by 43,560.
(C) 2,250.
(c) The city council or county board of supervisors shall not impose any parking
requirement on an eligible housing development in excess of 0.1 parking spaces per
unit that is affordable to persons and families with a household income equal to or
less than 120 percent of the area median income and 0.5 parking spaces per unit that
is offered at market rate.
(d) A city or county that adopts a floor area ratio bonus ordinance pursuant to this
section shall allow an applicant seeking to develop an eligible residential development
to calculate impact fees based on square feet, instead of on a per unit basis.
(e) In the case of an eligible housing development that is zoned for mixed -use
purposes, any floor area ratio requirement under a zoning ordinance or land use
element of the general plan of the city or county applicable to the nonresidential
portion of the eligible housing development shall continue to apply notwithstanding
the award of a floor area ratio bonus in accordance with this section.
(f) An applicant for a floor area ratio bonus pursuant to this section may also submit
to the city, county, or city and county a proposal for specific incentives or concessions
pursuant to subdivision (d) of Section 65915.
(g) (1) This section shall not be interpreted to do either of the following:
(A) Supersede or preempt any other section within this chapter.
(B) Prohibit a city, county, or city and county from providing a floor area ratio
bonus under terms that are different from those set forth in this section.
(2) The adoption of an ordinance pursuant to this section shall not be interpreted
to relieve a city, county, or city and county from complying with Section 65915.
(Added by Stats. 2018, Ch. 915, Sec. 1. (AB 2372) Effective January 1, 2019.)
17-44
State of California
GOVERNMENT CODE
Section 65917.5
65917.5. (a) As used in this section, the following terms shall have the following
meanings:
(1) "Child care facility" means a facility installed, operated, and maintained under
this section for the nonresidential care of children as defined under applicable state
licensing requirements for the facility.
(2) "Density bonus" means a floor area ratio bonus over the otherwise maximum
allowable density permitted under the applicable zoning ordinance and land use
elements of the general plan of a city, including a charter city, city and county, or
county of:
(A) A maximum of five square feet of floor area for each one square foot of floor
area contained in the child care facility for existing structures.
(B) A maximum of 10 square feet of floor area for each one square foot of floor
area contained in the child care facility for new structures.
For purposes of calculating the density bonus under this section, both indoor and
outdoor square footage requirements for the child care facility as set forth in applicable
state child care licensing requirements shall be included in the floor area of the child
care facility.
(3) "Developer" means the owner or other person, including a lessee, having the
right under the applicable zoning ordinance of a city council, including a charter city
council, city and county board of supervisors, or county board of supervisors to make
an application for development approvals for the development or redevelopment of
a commercial or industrial project.
(4) "Floor area" means as to a commercial or industrial project, the floor area as
calculated under the applicable zoning ordinance of a city council, including a charter
city council, city and county board of supervisors, or county board of supervisors and
as to a child care facility, the total area contained within the exterior walls of the
facility and all outdoor areas devoted to the use of the facility in accordance with
applicable state child care licensing requirements.
(b) A city council, including a charter city council, city and county board of
supervisors, or county board of supervisors may establish a procedure by ordinance
to grant a developer of a commercial or industrial project, containing at least 50,000
square feet of floor area, a density bonus when that developer has set aside at least
2,000 square feet of floor area and 3,000 outdoor square feet to be used for a child
care facility. The granting of a bonus shall not preclude a city council, including a
charter city council, city and county board of supervisors, or county board of
supervisors from imposing necessary conditions on the project or on the additional
17-45
square footage. Projects constructed under this section shall conform to height, setback,
lot coverage, architectural review, site plan review, fees, charges, and other health,
safety, and zoning requirements generally applicable to construction in the zone in
which the property is located. A consortium with more than one developer may be
permitted to achieve the threshold amount for the available density bonus with each
developer's density bonus equal to the percentage participation of the developer. This
facility may be located on the project site or may be located offsite as agreed upon
by the developer and local agency. If the child care facility is not located on the site
of the project, the local agency shall determine whether the location of the child care
facility is appropriate and whether it conforms with the intent of this section. The
child care facility shall be of a size to comply with all state licensing requirements in
order to accommodate at least 40 children.
(c) The developer may operate the child care facility itself or may contract with a
licensed child care provider to operate the facility. In all cases, the developer shall
show ongoing coordination with a local child care resource and referral network or
local governmental child care coordinator in order to qualify for the density bonus.
(d) If the developer uses space allocated for child care facility purposes, in
accordance with subdivision (b), for purposes other than for a child care facility, an
assessment based on the square footage of the project may be levied and collected by
the city council, including a charter city council, city and county board of supervisors,
or county board of supervisors. The assessment shall be consistent with the market
value of the space. If the developer fails to have the space allocated for the child care
facility within three years, from the date upon which the first temporary certificate
of occupancy is granted, an assessment based on the square footage of the project
may be levied and collected by the city council, including a charter city council, city
and county board of supervisors, or county board of supervisors in accordance with
procedures to be developed by the legislative body of the city council, including a
charter city council, city and county board of supervisors, or county board of
supervisors. The assessment shall be consistent with the market value of the space.
A penalty levied against a consortium of developers shall be charged to each developer
in an amount equal to the developer's percentage square feet participation. Funds
collected pursuant to this subdivision shall be deposited by the city council, including
a charter city council, city and county board of supervisors, or county board of
supervisors into a special account to be used for child care services or child care
facilities.
(e) Once the child care facility has been established, prior to the closure, change
in use, or reduction in the physical size of, the facility, the city, city council, including
a charter city council, city and county board of supervisors, or county board of
supervisors shall be required to make a finding that the need for child care is no longer
present, or is not present to the same degree as it was at the time the facility was
established.
(f) The requirements of Chapter 5 (commencing with Section 66000) and of the
amendments made to Sections 53077, 54997, and 54998 by Chapter 1002 of the
Statutes of 1987 shall not apply to actions taken in accordance with this section.
17-46
(g) This section shall not apply to a voter -approved ordinance adopted by
referendum or initiative.
(Amended by Stats. 2008, Ch. 179, Sec. 112. Effective January 1, 2009.)
17-47
State of California
GOVERNMENT CODE
Section 65918
65918. The provisions of this chapter shall apply to charter cities.
(Added by Stats. 1979, Ch. 1207.)
17-48
Attachment C
Ordinance No. 2022-18
17-49
ORDINANCE NO. 2022-18
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
NEWPORT BEACH, CALIFORNIA, ADOPTING ZONING
CODE AMENDMENT NO. CA2020-004 AMENDING
CHAPTER 20.32 (DENSITY BONUS) AND OTHER
RELATED PROVISIONS OF THE NEWPORT BEACH
MUNICIPAL CODE RELATED TO DENSITY BONUSES TO
COMPLY WITH STATE LAW (PA2020-032)
WHEREAS, Section 200 of the City of Newport Beach ("City") Charter vests the
City Council with the authority to make and enforce all laws, rules and regulations with
respect to municipal affairs subject only to the restrictions and limitations contained in
the Charter and the State Constitution, and the power to exercise, or act pursuant to
any and all rights, powers, and privileges, or procedures granted or prescribed by any
law of the State of California;
WHEREAS, Chapter 20.32 (Density Bonus) of the Newport Beach Municipal
Code ("NBMC") sets forth the City's requirements for granting density bonuses in
compliance with California Government Code Section 65915 et seq. ("State Density
Bonus Law");
WHEREAS, since Chapter 20.32 (Density Bonus) of the NBMC was last
updated in 2010 pursuant to Ordinance No. 2010-21, the California State Legislature
has adopted 18 bills that amend various sections of the State Density Bonus Law;
WHEREAS, revisions to Chapter 20.32 (Density Bonus) are necessary to
ensure consistency with the State Density Bonus Law;
WHEREAS, the City is amending Chapter 20.32 (Density Bonus) in accordance
with Policy Action 4C of the 2021-2029 General Plan Housing Element which states,
"The City will update its Density Bonus Ordinance (Newport Beach Municipal Code
Chapter 20.32) to be consistent with State Law, as amended", -
WHEREAS, on April 14, 2020, the City Council initiated Zoning Code
Amendment No. 2020-004 pursuant to Resolution No. 2020-36;
17-50
Ordinance No. 2022-18
Page 2 of 4
WHEREAS, the Planning Commission opened the public hearing to consider
Zoning Code Amendment No. CA2020-004 on July 7, 2022, and continued the hearing
to July 21, 2022 in the Council Chambers located at 100 Civic Center Drive, Newport
Beach, California. A notice of time, place and purpose of the public hearing was given in
accordance with Government Code Section 54950 et seq. ("Ralph M. Brown Act") and
Chapter 20.62 (Public Hearings) of the NBMC;
WHEREAS, at the continued public hearing evidence, both written and oral, was
presented to, and considered by, the Planning Commission;
WHEREAS, at the conclusion of the public hearing, the Planning Commission
adopted Resolution No. PC2022-018 by a unanimous vote (7 ayes — 0 nays),
recommending approval of Zoning Code Amendment No. CA2020-004 to the City
Council; and
WHEREAS, a duly noticed public hearing was held by the City Council on
August 23, 2022, in the Council Chambers located at 100 Civic Center Drive, Newport
Beach, California. A notice of time, place and purpose of the public hearing was given in
accordance with the Ralph M. Brown Act and Chapter 20.62 (Public Hearings) of the
NBMC. Evidence, both written and oral, was presented to, and considered by, the City
Council at this public hearing.
NOW THEREFORE, the City Council of the City of Newport Beach ordains as
follows:
Section 1: The City Council does hereby approve Zoning Code Amendment
No. CA2020-004 related to density bonuses as set forth in Exhibit "A," which is attached
hereto and incorporated herein by reference.
Section 2: Zoning Code Amendment No. CA2020-004 is consistent with and
implements California Government Code Section 65915 et. seq.
Section 3: Zoning Code Amendment No. CA2020-004 is consistent with Policy
Action 4C and Housing Policy 2.1 of the 2021-2029 Housing Element in that it would
bring the City's density bonus regulations into compliance with State Density Bonus Law
and provide a method for the City to review and approve density bonuses.
Section 4: The recitals provided in this ordinance are true and correct and are
incorporated into the substantive portion of this ordinance.
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Ordinance No. 2022-18
Page 3 of 4
Section 5: If any section, subsection, sentence, clause or phrase of this
ordinance is for any reason held to be invalid or unconstitutional, such decision shall not
affect the validity or constitutionality of the remaining portions of this ordinance. The
City Council hereby declares that it would have passed this ordinance and each section,
subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or
more sections, subsections, sentences, clauses or phrases be declared invalid or
unconstitutional.
Section 6: Zoning Code Amendment No. CA2020-004 is exempt from
environmental review under the California Environmental Quality Act ("CEQA") pursuant
to Section 15061(b)(3) of the CEQA Guidelines, California Code of Regulations, Title 14,
Division 6, Chapter 3, the general rule that CEQA applies only to projects, which have
the potential for causing a significant effect on the environment. The amendment
specifies how the City will comply with and implement State Density Bonus Law. The
bonuses, incentives, and waivers permitted by the ordinance are already allowed
pursuant to State Density Bonus Law.
Section 7: Except as expressly modified in this ordinance, all other sections,
subsections, terms, clauses and phrases set forth in the Newport Beach Municipal Code
shall remain unchanged and shall be in full force and effect.
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Ordinance No. 2022-18
Page 4 of 4
Section 8: The Mayor shall sign and the City Clerk shall attest to the passage
of this ordinance. The City Clerk shall cause the ordinance, or a summary thereof, to be
published pursuant to City Charter Section 414. This ordinance shall be effective thirty
(30) calendar days after its adoption.
AYES:_Mayor Muldoon, Mayor Pro Tern Blom, Council Member Avery, Council
Member Brenner, Council Member Dixon, Council Member Duffield, Council
Member O'Neill
NAYS:
ABSENT:
ATTEST:
NE
LEILANI I. BROWN, CITY CLERK jv
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
I C # 04-.11 1
AA ON C. HARP, CITY ATTORNEY
Attachment(s): Exhibit A — Zoning Code Amendment No. CA2020-004
17-53
Exhibit A
Zoning Code Amendment No. 2020-004
Section 1: Subsection (C)(1) of Section 20.12.020 (Rules of Interpretation) of
chapter 20.12 (Interpretation of Zoning Code Provisions) of Title 20 (Planning and Zoning)
the NBMC is hereby amended to read as follows:
C. Calculations.
Residential Density. Except for projects that include a density bonus in
accordance with Section 20.32.040(A), when the number of dwelling units
allowed on a site is calculated based on the minimum site area per dwelling
unit, any fraction of a unit shall be rounded down to the next lowest whole
number. For example, where a residential zoning district requires a minimum
site area per dwelling unit of one thousand five hundred (1,500) square feet; a
site of ten thousand (10,000) square feet would be allowed six (6) dwelling
units (10,000 sq. ft/1,500 sq. ft. per dwelling unit = 6.66 dwelling units, which
is rounded down to six (6) dwelling units).
Section 2: Chapter 20.32 (Density Bonus) of Title 20 (Planning and Zoning) of the
NBMC is hereby deleted in its entirety and replaced with the following:
Chapter 20.32
DENSITY BONUS
Sections:
20.32.010-
Purpose.
20.32.020
Definitions.
20.32.030
Eligibility for Density Bonus and Incentives.
20.32.040
General Requirements.
20.32.050
Allowed Density Bonuses.
20.32.060
Parking Requirements in Density Bonus Projects.
20.32.070
Allowed Incentives or Concessions.
20.32.080
Waivers or Reductions of Development Standards.
20.32.090
Incentives for Housing with Childcare Facilities.
20.32.100
Condominium Conversions.
20.32.110
Design and Distribution of Affordable Units.
20.32.120
Replacement Units.
20.32.130
Continued Availability.
20.32.140
Occupancy and Resale of Ownership Units.
20.32.150
Approval Process.
20.32.160
Affordable Housing Agreement.
20.32.010 Purpose.
The purpose of this chapter is not intended
Code Sections 65915 through 65918, as th
to expand the requirements of Government
same may be amended from time to time,
17-54
but rather to provide a means for granting density bonuses and incentives as required by
state law. This chapter provides regulations for considering density bonus and incentive
requests for the development of housing that is affordable to extremely low-, very low-,
low-, and moderate -income households, foster youth, disabled veterans, homeless
persons, lower -income students, senior citizens, and childcare.
20.32.020 Definitions.
As used in this chapter, the following words shall have the following meanings:
A. "Affordable housing" means housing for which the allowable housing expenses paid
by a qualifying household shall not exceed a specified fraction of the county median
income, adjusted for household size. This includes housing designated for extremely
low-, very low-, low-, and moderate -income households.
B. "Childcare facility" means a child day care facility, other than a family day care home,
including, but not limited to, infant centers, preschools, extended day care facilities,
and school -age childcare center. "Childcare facility" does not include public or private
primary or secondary education facilities.
C. "Condominium conversion" means the conversion of apartments, or other rental units,
into ownership property that consist of an undivided interest in common in a portion of
real property coupled with a separate interest within the boundaries of the dwelling
unit.
D. "Density bonus" means a density increase over the maximum allowable residential
density under applicable zoning and Land Use Element of the General Plan as of the
date of application.
E. "Development standard" means a site or construction condition, including, but not
limited to, a height limitation, setback requirement, floor area ratio, an onsite open -
space requirement, or a parking ratio that applies to a housing development pursuant
to any ordinance, General Plan policy, specific plan, or other local condition, law,
policy, resolution, or regulation. Development standard shall not mean an impact fee,
inclusionary housing requirement, or dedication of land.
F. "Disabled veteran" means any veteran who is currently declared by the United States
Veterans Administration to be ten (10) percent or more disabled as a result of service
in the armed forces. Proof of such disability shall be deemed conclusive if it is of record
in the United States Veterans Administration.
G. "Equivalent financial value" means an incentive that would result in a reduction in cost
to the developer/property owner based upon the land cost per dwelling unit and shall
be calculated based upon the difference in the value of the land with and without the
density bonus.
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H. "Equivalent size" means that the replacement units specified in Section 20.32.120
contain at least the same total number of bedrooms as the units being replaced.
I. "Foster youth" means a person in California whose dependency was established or
continued by a court of competent jurisdiction, including a tribal court, on or after the
youth's 13th birthday and who is no older than 25 years of age at the commencement
of the academic year.
J. "Homeless person" shall have the same meaning as that phrase is defined in Section
11302 of the federal McKinney-Vento Homeless Assistance Act (42U.S.C. Ch. 119).
K. "Housing development" means a development project for five (5) or more residential
dwelling units, including mixed -use developments, subdivisions, or common interest
development. A "housing development" may consist of residential units, unimproved
residential lots, a project to substantially rehabilitate and convert an existing
commercial building to residential use, or the substantial rehabilitation of an existing
multifamily dwelling where the result of the rehabilitation would result in a net increase
in available residential units. For purposes of calculating a density bonus, the
residential units shall be on contiguous sites that are the subject of one (1)
development application but may include more than one subdivision map.
L. "Lower -income student" means a student who has a household income and asset
level that does not exceed the level for Cal Grant A or Cal Grant B award recipients
as set forth Education Code Section 69432.7(k)(1). 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 enrolled or by the California Student Aid Commission
that the student receives or is eligible for financial aid, including an institutional grant
or fee waiver from the college or university, the California Student Aid Commission, or
the federal government.
M. "Major transit stop" means a site containing an existing rail transit station or the
intersection of two (2) or more major bus routes with a frequency of service interval of
fifteen (15) minutes or less at the intersection of the two (2) routes during both the
morning and afternoon peak commute hours.
N. "Natural or constructed impediments" means a hindrance or obstruction that prevents
pedestrian or bicycle access to a major transit stop. Natural or constructed
impediments include, but are not limited to, freeways, rivers, mountains, harbors, and
bodies of water, but does not include residential structures, shopping centers, parking
lots, or rails used for transit.
O. "Specific adverse impact" means a significant, quantifiable, direct, and unavoidable
impact, based on objective, identified written public health or safety standards,
policies, or conditions as they existed on the date the application was deemed
complete. The following shall not constitute a specific, adverse impact upon the public
3
17-56
health or safety: (1) inconsistency with the zoning or General Plan land use
designation, or (2) the eligibility to claim a welfare exemption under subdivision (g) of
Section 214 of the Revenue and Taxation Code.
P. "Unobstructed access" means that the income qualified resident of the housing
development is able to walk or bike to from the residence without trespassing or
otherwise encountering natural or constructed impediments.
20.32.030 Eligibility for Density Bonus and Incentives.
A. To be eligible for a density bonus, incentive(s) or concession(s), or waiver or reduction
of development standard(s) as provided by this chapter, a housing development or
condominium conversion shall include only one (1) of the following requirements and
satisfy all other applicable provisions of this Zoning Code:
1. A minimum of five (5) percent of the total number of units of a housing development
shall be restricted and affordable to very low-income households.
2. A minimum of ten (10) percent of the total number of units of a housing
development shall be restricted and affordable to low-income households.
3. A minimum often (10) percent of the total units in a for -sale housing development
shall be restricted and affordable to moderate -income households, provided that
all units in the housing development are offered to the public for purchase.
4. One hundred (100) percent of all units in a housing development, exclusive of a
manager's unit or units, shall be restricted and affordable to lower -income
households, except that no more than twenty (20) percent of the units in the
housing development, including total units and density bonus units, may be
affordable to moderate -income households.
5. A minimum of ten (10) percent of the total units of a housing development for
transitional foster youth, disabled veterans, or homeless persons shall be provided
at the same affordability level as very low-income units.
6. A minimum of twenty (20) percent of the total units of a housing development shall
be affordable to lower -income college students.
7. A condominium conversion project where either thirty-three (33) percent of the
units converted are affordable to low- or moderate -income households, or fifteen
(15) percent of the units converted are affordable to very low- or extremely low-
income households.
8. A senior citizen housing development, as defined in Civil Code Sections 51.3 and
51.12, that has at least thirty-five (35) dwelling units or a mobile home park that
limits residency based on age requirements for housing older persons in
compliance with Civil Code Sections 798.76 or 799.5.
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17-57
9. The applicant for a housing development donates at least one (1) acre of land to
the City for very low-income units, provided the land has the appropriate General
Plan designation, zoning, permits and approvals, and access to public facilities
needed for such housing.
B. Housing Development Not Eligible for a Density Bonus, Concession, Incentive, or
Waiver. A housing development shall not be eligible for a density bonus, or any
incentive, concession, or waiver of a development standard under this chapter on a
parcel containing existing affordable housing unless:
The housing development replaces the existing affordable units in accordance with
all of the requirements set forth in Section 20.32.120; and
2. The housing development, inclusive of the units replaced pursuant to this section,
contains affordable units at one (1) of the percentage levels set forth in Section
20.32.030(A).
20.32.040 General Requirements.
A. Fractional Units. The calculation of a density bonus in compliance with this section
that results in fractional units, including base density and bonus density, shall be
rounded up to the next whole number.
B. Mixed Income Development. If a housing development qualifies for a density bonus
under more than one (1) income category; as senior housing; or as housing intended
to serve transitional foster youth, disabled veterans, or homeless persons; the
applicant shall select only one (1) of the above categories in the application. Density
bonuses from more than one (1) category may not be combined.
C. General Plan & Zoning Consistency. The granting of a density bonus, in and of itself,
shall not be interpreted as requiring a General Plan amendment, Zoning Map
amendment, or other discretionary approval.
D. Financial Incentives. The provisions of this chapter shall not be interpreted to require
or limit the City from providing direct financial incentives, including the provision of
publicly owned land or the waiver of fees or dedication requirements.
E. Increased Density Limit. A housing development shall not exceed the cumulative total
of base units allowed by the underlying zone and the density bonus units allowed by
Section 20.32.050. Incentives, concessions, or development standard waivers shall
not be used to increase density.
F. Reduced Density. An applicant for a density bonus may elect to provide a lesser
percentage of density increase than what is authorized by Section 20.32.050
including, but not limited to, no increase in density, but shall remain eligible for
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concessions or incentives, waivers of development standards, and eligible parking
requirements provided the project meets the eligibility requirements of this section.
20.32.050 Allowed Density Bonuses.
A housing development that meets one (1) of the eligibility levels in Section 20.32.030 is
entitled to a density bonus as provided herein.
A. Density Bonus for Very Low-, Low-, and Moderate -Income Households. A housing
development that is eligible for a density bonus pursuant to Section 20.32.030(A)(1)
through Section 20.32.030(A)(4) is entitled to a density bonus calculated as follows:
TABLE 3-6
VERY LOW, LOW, AND MODERATE
De
sity Bonus Percentage
Percentage of
Base
Units Proposed
Very Low Income
Low Income
Moderate Income
5%
20%
-
-
6%
22.5%
-
-
7%
25%
-
-
8%
27.5%
-
-
9%
30%
-
-
10%
32.5%
20%
5%
11 %
35%
21.5%
6%
12%
38.75%
23%
7%
13%
42.5%
24.5%
8%
14%
46.25%
26%
9%
15%
50%
27.5%
10%
16%
50%
29%
11%
17%
50%
30.5%
12%
18%
50%
32%
13%
19%
50%
33.5%
14%
20%
50%
35%
15%
21 %
50%
38.75%
16%
22%
50%
42.5%
17%
23%
50%
46.25%
18%
24%
50%
50%
19%
25%
50%
50%
20%
26%
50%
50%
21%
27%
50%
50%
22%
28%
50%
50%
23%
29%
50%
50%
24%
0
17-59
30%
50%
50%
25%
31%
50%
50%
26%
32%
50%
50%
27%
33%
50%
50%
28%
34%
50%
50%
29%
35%
50%
50%
30%
36%
50%
50%
31%
37%
50%
50%
32%
38%
50%
50%
33%
39%
50%
50%
34%
40%
50%
50%
35%
41 %
50%
50%
38.75%
42%
50%
50%
42.5%
43%
50%
50%
46.25%
44%
50%
50%
50%
100%
80%
80%
80%
Notwithstanding the foregoing, a cap on density will not apply if both of the following
conditions are met:
1. One hundred (100) percent of the units in a housing development exclusive of a
manager's unit or units, are restricted and affordable to very -low and low-income
households, except that no more than twenty (20) percent of the total units
(including density bonus units) in the housing development are restricted and
affordable to moderate -income households.
2. The housing development is located within one-half (Y2) mile of a major transit stop
with unobstructed access.
B. Density Bonus for Transitional Foster Youth, Disabled Veterans, or Homeless
Persons. A housing development that is eligible for a density bonus at the level set
forth in Section 20.32.030(A)(5) shall be entitled to a density bonus of twenty (20)
percent.
C. Density Bonus for Lower -Income College Students. A student housing development
that is eligible for a density bonus at the level set forth in Section 20.32.030(A)(6) shall
be entitled to a density bonus of thirty-five (35) percent.
1. All units in the student housing development shall be used exclusively for
undergraduate, graduate, or professional 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.
2. The applicant or property owner shall provide evidence to the City that the housing
development shall be subject to an operating agreement or lease with one (1) or
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more institution of higher education that all units shall be exclusively occupied by
the students of the institution(s).
3. The rent for affordable units shall be calculated at thirty (30) percent of sixty-five
(65) percent of the area median income for a single -room occupancy unit.
4. Priority for the affordable units shall be given to lower -income students
experiencing homelessness. A homeless service provider, as defined in paragraph
(3) of subdivision (e) of Section 103577 of the Health and Safety Code, or
institution of higher education that has knowledge of a person's homeless status
may verify a person's status as homeless for purposes of this subsection.
5. For purposes of calculating a density bonus granted pursuant to this section, the
term "unit" shall mean one (1) rental bed and its pro rata share of associated
common area facilities.
D. Density Bonus for Condominium Conversion. A condominium conversion that is
eligible for a density bonus pursuant to Section 20.32.030(A)(7) shall be entitled to a
density bonus of twenty-five (25) percent provided the condominium conversion meets
all of the requirements in Section 20.32.100.
E. Density Bonus for Senior Housing. A senior housing development that is eligible for a
density bonus pursuant to Section 20.32.030(A)(8) shall be entitled to a density bonus
of twenty (20) percent.
F. Density Bonus for donating land for very low-income units. A housing development
that includes the donation of land for the development of very low-income housing
pursuant to Section 20.32.030(A)(9) shall be entitled to a density bonus calculated as
follows:
TABLE 3-7
LAND DEDICATED TO ACCOMMODATE VERY LOW-INCOME
Percentage of
Base
Units Proposed
Density Bonus
Percentage
10%
15%
11%
16%
12%
17%
13%
18%
14%
19%
15%
20%
16%
21%
17%
22%
18%
23%
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19%
24%
20%
25%
21%
26%
22%
27%
23%
28%
24%
29%
25%
30%
26%
31%
27%
32%
28%
33%
29%
34%
30%
35%
Any increase authorized by this subsection may be approved in addition to any
increase in density allowed by Section 20.32.030 up to a maximum combined
density increase of thirty-five (35) percent.
2. The donated land shall be the greater of:
a. One (1) acre;
b. Sufficient square -footage or acreage to permit development of the percentage
of base units proposed; or
c. Sufficient square -footage or acreage to permit development of forty (40) units
under the existing general plan and zoning designation.
3. The existing General Plan and zoning designation of the donated land shall be
zoned to accommodate at least thirty (30) dwelling units per acre, and is, or will,
be served by adequate public facilities and infrastructure through the construction
of the housing development.
4. The land shall be donated and transferred to the City or a housing developer that
is approved by the City. The applicant shall donate and transfer the land no later
than the date of approval of the final subdivision map, or issuance of building
permits for the housing development where no subdivision is required.
5. The City shall not approve the final subdivision map or issue building permits for
the housing development unless and until all permits, other than building permits,
for the development of very low-income housing have been issued for the donated
and transferred land.
6. The donated and transferred land shall be within the boundary of the housing
development, or upon approval of the review authority, within one -quarter (1/4) mile
of the housing development.
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7. The source of funding for the development of very low-income housing on the
donated and transferred land shall be identified not later than the date of approval
of the final subdivision map or issuance of building permits for the housing
development.
8. The donated and transferred land and the affordable units shall be subject to a
deed restriction recorded on the property at the time of transfer ensuring continued
affordability of the units consistent with Section 20.32.130.
20.32.060 Parking Requirements in Density Bonus Projects.
A. Applicability. For a housing development that meets one (1) of the eligibility levels in
Section 20.32.030, the applicant may request application of the parking requirements
set forth below. An applicant may request additional parking incentives beyond those
provided in this section in compliance with Sections 20.32.070 and 20.32.080.
B. Number of Parking Spaces Required.
1. Parking Ratios. At the request of the applicant, the following minimum parking
ratios may apply to the housing development:
Dwelling Unit Size
Onsite Parking per
Unit
Studio to 1 Bedroom
1 space
2 to 3 Bedrooms
1.5 spaces
4 or more Bedrooms
2.5 spaces
2. Within One -Half Mile (Y2) of Major Transit Stop. Notwithstanding subsection B(1),
if a housing development provides at least twenty (20) percent low-income units or
eleven (11) percent very low-income units and is located within one-half ('/2) mile
of a major transit stop with unobstructed access, then upon the request of the
developer, the City may not impose a vehicular parking ratio, inclusive of
handicapped and guest parking, that exceeds 0.5 spaces per bedroom.
3. Zero Parking. Notwithstanding subsection B(1), if a housing development consists
solely of rental units affordable to lower income families; then upon the request of
the developer, the City may not impose a vehicular parking ratio, inclusive of
handicapped and guest parking, if either of the following criteria are met:
a. The housing development is located within one-half (Y2) mile of a major transit
stop with unobstructed access from the housing development;
b. The housing development is a for -rent housing development for individuals who
are 62 years of age or older that meet the definition in Sections 51.2 and 51.3
of the Civil Code and the housing development has either paratransit service
or unobstructed access within one-half (Y2) mile of a fixed bus route that
operates at least eight (8) times per day; or
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c. The housing development is either a special needs housing development, as
defined in Section 51312 of the Health and Safety Code, or supportive housing
development as defined in Section 50675.14 of the Health and Safety Code,
and the housing development has either paratransit service or unobstructed
access within one-half (Y2) mile of a fixed bus route that operates at least eight
(8) times per day.
4. Notwithstanding subsection (B)(2) and (13)(3), the City may impose the parking
ratio set forth in subsection (13)(1), if the City or an independent consultant has
conducted an areawide or jurisdiction -wide parking study within the past seven (7)
years that demonstrates a higher parking ratio is necessary based upon 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 of market -rate and subsidized developments, and the
lower rates of car ownership for low-income and very low income individuals,
including seniors and special needs individuals.
C. Location of Parking. For purposes of this section, a housing development may provide
on -site parking through uncovered or tandem on -site parking.
D. Rounding of Partial Parking Spaces. If the total number of parking spaces required for
a housing development is other than a whole number, the number shall be rounded
up to the next whole number.
20.32.070 Allowed Incentives or Concessions.
A. Applicant Request and City Approval. The applicant shall include any request for
incentive(s) or concession(s) listed in subsection (C) concurrently with the application
for project approval. The applicant shall provide documentation establishing that an
incentive or concession is necessary to make the housing units economically feasible.
When an applicant makes a request for an incentive or concession, the review
authority shall grant the request unless one (1) or more of the following findings is
made:
1. The incentive or concession is not required in order to provide affordable housing
costs or for rents for the targeted units to be set as specified in Section
20.32.130(B);
2. The incentive or concession would have a specific adverse impact upon public
health and safety, or on any real property listed in the California Register of
Historical Resources and for which there is no feasible method to satisfactorily
mitigate or avoid the specific adverse impact without rendering the development
unaffordable to low- and moderate -income households; or
3. The incentive would be contrary to state or federal law.
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B. Number of Incentives or Concessions. Except as provided in subsection (A) of this
section, the review authority shall grant the following number of incentives or
concessions:
One (1) incentive or concession for a housing development that includes at least
ten (10) percent of the total units for low-income households, at least five (5)
percent of the total units for very low-income households, at least twenty (20)
percent of the total units for low-income students in a student housing
development, or at least ten (10) percent of the total units for moderate -income
households in a for -sale housing development.
2. Two (2) incentives or concessions for a housing development that includes at least
seventeen (17) percent of the total units for low-income households, at least ten
(10) percent of the total units for very low-income households, or at least twenty
(20) percent of the total units for moderate -income households in a for -sale
housing development.
3. Three (3) incentives or concessions for a housing development that includes at
least twenty-four (24) percent of the total units for low-income households, at least
fifteen (15) percent of the total units for very low-income households, or at least
thirty (30) percent of the total units for moderate -income households in a for -sale
housing development.
4. Four (4) incentives or concession for projects that meet the criteria of Section
20.32.030(A)(4). If the housing development is located within one-half ('/2) mile of
a major transit stop with unobstructed access, the housing development is eligible
for a height increase of up to three (3) additional stories, or thirty-three (33) feet.
C. Type of Incentive or Concession. For the purposes of this chapter, "incentive" or
"concession" mean any of the following:
1. A reduction in the development standard(s) as that term is defined in Section
20.32.020, that results in identifiable, financially sufficient, and actual cost
reductions;
2. A mixed -use project in conjunction with the housing development, if the
nonresidential portion of the mixed -use project will reduce the cost of the housing
development, is compatible with the residential portion of the housing
development, and is compatible with adjacent existing or planned development;
3. A reduction or waiver of any City imposed fee or dedication of land, which shall be
at the sole discretion of the City Council; and/or
4. Other regulatory incentives that will result in identifiable, financially sufficient, and
actual cost reductions.
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20.32.080 Waivers or Reductions of Development Standards.
In addition to requesting an incentive or concession, an applicant for a density bonus may
also submit a proposal to the City to waive or reduce an unlimited number of development
standards that would otherwise preclude or inhibit construction of the housing
development at the densities or with the incentives permitted by this chapter.
A. When an applicant makes a request for a waiver, the review authority shall grant the
request unless any of the following findings are made:
1. The waiver or reduction of development standards would have a specific adverse
impact upon public health or safety, and for which there is no feasible method to
satisfactorily mitigate or avoid the specific adverse impact.
2. The waiver or reduction of development standards would have an adverse impact
on any real property listed in the California Register of Historical Resources.
3. The waiver or reduction of development standards would be contrary to state or
federal law.
B. Notwithstanding subsection 20.32.080(A), a housing development that is eligible for
no cap on density pursuant Section 20.32.050(A) shall only be eligible for a waiver or
reduction of development standards as provided in Section 20.32.070(B)(4).
20.32.090 Incentives for Housing with Childcare Facilities.
A. Incentives. A housing development that complies with the income requirements of
Section 20.32.030(A) and includes a childcare facility, other than a large or small
family day care home, that will be located on the same site as the development, shall
be eligible for either of the following additional incentives:
An amount of residential floor area equal to or greater than the floor area of the
childcare facility; or
2. An incentive that contributes to the economic feasibility of the childcare facility as
provided in Section 20.32.070(C).
Notwithstanding the foregoing, the City shall not be required to provide a density
bonus for a childcare facility if it finds that the community has adequate childcare
facilities.
B. Requirements to Qualify for Incentives. The City shall require, as a condition of
approval of the housing development, that:
The childcare facility shall remain in operation for a period of time that is as long
as, or longer than, the period of time during which the density bonus units are
required to remain affordable in compliance with Section 20.32.130, and
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2. Of the children who attend the childcare facility, the children of very low-income,
low-income, or moderate income households shall equal a percentage that is equal
to or greater than the percentage of dwelling units that are required for very low-
income, lower -income, or moderate income households in compliance with
Section 20.30.030(A).
20.32.100 Condominium Conversions.
A. Density Bonus. When an applicant proposes to convert apartments to condominiums,
which meet the eligibility level in Section 20.32.030(A)(7), the City shall grant either a
density bonus of up to twenty-five (25) percent pursuant to Section 20.32.050(D) to
create additional units on the project site or other incentive of equivalent financial
value provided:
The applicant agrees to pay for the reasonably necessary administrative costs,
including, but not limited to, staff costs, consultant fees, photocopy costs, and
mailing fees, incurred by the City; and
2. The City places such reasonable conditions on the granting of a density bonus or
other incentives of equivalent financial value as it finds appropriate, including, but
not limited to, conditions which assure continued affordability of units to
subsequent very low-, low- and moderate -income households.
B. Replacement Units. All units within the condominium conversion shall meet the
replacement requirements in Section 20.32.120.
C. Ineligible Requests. Apartments which are proposed for conversion to condominiums
shall be ineligible for a density bonus or other incentive under this section if the
apartments were previously granted a density bonus, concession, incentive, or waiver
or reduction of development standards.
D. Preapplication Process. An applicant may submit to the City a preliminary application
for the condominium conversion on a form provided by the Director prior to the
submittal of an application to the City under chapters 19.08 and 19.64. Within ninety
(90) days of receipt of the preliminary application, the City shall notify the applicant in
writing whether the application is eligible for a condominium conversion pursuant to
this section.
E. Approval. An application for condominium conversion shall meet the requirements set
forth in Chapter 19.64. Nothing in this section shall be construed to require the City
to approve an application for a condominium conversion.
20.32.110 Design and Distribution of Affordable Units.
Affordable units shall be designed and distributed within the housing development as
follows:
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A. Number of Bedrooms. Affordable units shall reflect the range of numbers of bedrooms
provided in the residential development project as a whole;
B. Comparable Quality and Facilities. Affordable units shall be constructed to the same
quality and exterior design as the market -rate housing units. Additionally, the
affordable units shall include the same laundry, recreation, and other facilities that are
made available to the market -rate housing units;
C. Access. In mixed -income multi -unit structures, the occupants of the affordable units
shall have the same access to common entrances and any common areas including
parking areas in that structure as the occupants of the market -rate housing units;
D. Size. Affordable units may be smaller and have different interior finishes and features
than the market -rate units; and
E. Location. Affordable units shall be distributed within the residential development,
unless clustering is allowed by the review authority. Notwithstanding, in a mixed -
income multi -unit structure, affordable units shall not be isolated to a specific floor or
an area of a specific floor.
20.32.120 Replacement Units.
An application for a density bonus on any property with existing rental dwelling units or
rental dwelling units that were vacated or demolished within the five (5) years preceding
the application; and are, or were, subject to a recorded covenant that restricts rents to
very low- or low-income households; or are, or were, occupied by very low- or low-income
household(s) shall be subject to all of the following requirements:
A. Occupied Units. For rental dwelling units that are occupied on the date of the
application, the housing development shall provide at least the same number of
affordable units of equivalent size at affordable rent or affordable housing cost to, and
occupied by, persons or families in the same or lower income category as the existing
occupants.
B. Vacant or Demolished Units. For rental dwelling units that have been vacated or
demolished within the five (5) years preceding the application, the housing
development shall provide at least the same number of affordable units of equivalent
size as existed at the highest occupancy point for those units in the five (5) years
preceding the application at affordable rent or affordable housing cost to, and
occupied by, persons and families in the same or lower income category as the
persons or families that occupied the units immediately preceding the vacancy or
demolition.
C. Unknown Household Income. If the income of the existing occupants or occupants
within the past five (5) years is unknown to the City or the applicant, it shall be
rebuttably presumed that the rental dwellings units were occupied by low-income and
very low-income renter households as determined by the most recently available data
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from the United States Department of Housing and Urban Development's
Comprehensive Housing Affordability Strategy database.
20.32.130 Continued Availability.
The units that qualified the housing development for a density bonus and other incentives
shall continue to be available as affordable and/or senior units in compliance with the
following requirements:
A. Duration of Availability. The applicant shall record a covenant on the property that the
units that qualified the housing development for a density bonus and other incentives
are restricted as affordable units for at least fifty-five (55) years, or a longer time if
required by the construction or mortgage financing assistance program, mortgage
insurance program, or rental subsidy program.
B. Affordable Costs. The rents and owner -occupied costs charged for the housing units
shall not exceed the following amounts during the period of continued availability
required by this section:
Rental Units. Rents for density bonus units shall be set at an affordable rent as
defined in Health and Safety Code Section 50053; and
2. Owner -Occupied Units. Owner -occupied units shall be available at an affordable
housing cost as defined in Health and Safety Code Section 50052.5.
20.32.140 Occupancy and Resale of Ownership Units.
A housing development that includes for -sale units that are restricted and affordable to
moderate -income households shall limit the occupancy and resale of the units as set forth
in this section.
A. Initial Occupancy. A for -sale unit, which qualified the applicant for the award of the
density bonus, shall meet either of the following requirements:
The unit is initially occupied by a very low-, low-, or moderate -income household,
offered at an affordable housing as defined in Section 50052.5 of the Health and
Safety Code, and subject to an equity sharing agreement.
2. The unit is purchased by a qualified nonprofit housing corporation pursuant a
contract that is recorded on the property, and all of the following are satisfied:
a. The nonprofit housing corporation is organized pursuant to Internal Revenue
Code Section 501(c)(3) and has received a welfare exemption under Revenue
and Taxation Code Section 214.15 for properties intended to be sold to low-
income households who participate in a special no -interest loan program,
b. The contract restricts the use of the land for at least thirty (30) years to owner -
occupied housing that is available at an affordable housing cost;
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c. The contract includes a deed of trust on the property in favor of the nonprofit
corporation to ensure compliance with the terms of the program, which has no
value unless the owner fails to comply with the covenants and restrictions of
the terms of the home sale;
d. The City Attorney finds that the long-term deed restrictions in the contract serve
a public purpose;
e. A repurchase option that requires a subsequent purchaser of the property that
desires to sell or convey the property to offer the qualified nonprofit corporation
the right to repurchase the property prior to selling or conveying that property
to any other purchaser; and
f. Affordability restrictions on the sale and conveyance of the property that ensure
that the property will be preserved for lower income housing for at least forty-
five (45) years for owner -occupied housing units and will be sold or resold only
to very low, low, or moderate -income households.
B. Resale. As part of the affordable housing agreement required pursuant to Section
20.32.160, the applicant shall enter into an equity sharing agreement with the City for
the resale of affordable common interest units, unless it would be in conflict with the
requirements of another public funding source or law. In lieu of an equity sharing
agreement, the housing project could sell the units to a nonprofit housing corporation
pursuant to Section 20.32.140(A)(2). The following requirements apply to the equity
sharing agreement:
1. Upon resale, the seller of the unit shall retain the value of any improvements, the
down payment, and the seller's proportionate share of appreciation; and
2. The City shall recapture any initial subsidy and its proportionate share of
appreciation, which shall then be used within five (5) years for any of the purposes
described in Health and Safety Code Section 33334.2(e) that promote home
ownership. For the purposes of this section:
a. The City's initial subsidy shall be equal to the fair market value of the home at
the time of initial sale, minus the initial sale price, plus the amount of any down
payment 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;
b. The City's proportionate share of appreciation shall be equal to the ratio of the
initial subsidy to the fair market value of the home at the time of initial sale; and
c. The initial subsidy shall include any incentives granted by the City and shall be
equal to the monetary equivalent of the incentives.
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20.32.150 Approval Process.
An applicant requesting a density bonus, incentive, concession, or waiver pursuant to this
chapter shall require approval of an Affordable Housing Implementation Plan pursuant to
Sections 20.50.030 and 20.52.015.
20.32.160 Affordable Housing Agreement.
The applicant approved for a density bonus, concession, incentive, or waiver under this
chapter shall agree to construct, operate and maintain the affordable units in accordance
with an affordable housing agreement. The affordable housing agreement shall be
executed in a recordable form prior to the issuance of a building permit for any portion of
a housing development subject to the requirements of this chapter. The affordable
housing agreement shall be binding upon all future owners and successors in interest.
A. Review. The terms of the affordable housing agreement shall be reviewed and revised
as appropriate by the Director and City Attorney.
B. Fees. The City may establish fees associated with the setting up and monitoring of
the affordable units.
C. Contents. The affordable housing agreement shall include at least the following:
Identification of Affordable Units. Affordable units shall be identified by address
and legal description, type (floor area, number of bedrooms/baths, unit size, etc.),
and designated household income category. The affordable housing agreement
shall also identify the total number of affordable units and total number of units
approved for the housing development.
2. Term of Affordability. Unless specified elsewhere in this chapter, a minimum term
of fifty-five (55) years of the specified affordability shall be required. Such
reservation period shall begin on the date a certificate of occupancy is granted for
the affordable units.
3. Maximum Allowable Rent or Sales Price.
a. Rental Housing Developments. In the case of rental housing developments, the
affordable housing agreement shall provide for the following conditions
governing the use of the affordable housing units during the use restriction
period:
The rules and procedures for qualifying tenants, establishing affordable
rent, filling vacancies, and maintaining the affordable units for qualified
tenants.
Provisions requiring owners to verify tenant incomes and maintain books
and records to demonstrate compliance with this chapter.
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iii. Provisions requiring owners to submit an annual report to the City, which
includes the name, address and income of each person occupying each
affordable unit, and which identifies the bedroom size and monthly rent or
cost of each affordable unit.
iv. A maximum rent schedule shall be submitted to the City prior to the
issuance of an occupancy permit for the affordable units, and updated
annually on the anniversary date of occupancy.
V. Total move -in costs for eligible tenants occupying affordable units shall be
limited to first month's rent plus a security/cleaning deposit not to exceed
one month's rent.
vi. When a tenant occupying an affordable unit no longer qualifies under the
income requirements, verified through the monitoring program required as
part of the affordable housing agreement, that tenant may then be charged
market rate rent. If this occurs, any currently vacant unit of similar type to
the affordable unit in question shall then be designated as an affordable
unit, and the owner shall immediately attempt to secure tenants in
accordance with this chapter. The owner is required to maintain at all times
during the use restriction the minimum number of affordable units identified
in the affordable housing agreement.
vii. No subletting or short-term occupancy of designated affordable units shall
be allowed.
b. Ownership Projects. In the case of for -sale housing developments, as a
condition of approval of the housing development, the City shall require an
affordable housing agreement that includes the following conditions governing
the initial sale and use of affordable units during the applicable use period:
Affordable units shall, upon initial sale, be sold to eligible very low- and low-
income households at an affordable sales price and housing cost, or to
qualifying residents in the case of a senior citizen housing development.
ii. Affordable units shall be initially owner -occupied by eligible very low- or low-
income households, or by qualifying residents in the case of a senior citizen
housing development.
iii. The initial purchaser of each affordable housing unit shall execute an
instrument or agreement approved by the City restricting the sale of the
affordable housing unit in accordance with this chapter during the applicable
use restriction period. Such instrument or agreement shall be recorded
against the parcel containing the affordable housing unit and shall contain
such provisions as the City may require to ensure continued compliance
with this chapter and State Density Bonus Law.
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iv. The affordable housing agreement shall stipulate that, when the terms of
affordability expire on an affordable unit, the City and/or a non-profit housing
organization shall have a first right of purchase option sixty (60) days prior
to the affordable unit being advertised on the market.
V. Rental of affordable units shall not be allowed.
vi. When an equity sharing agreement is required by this chapter, the
affordable housing agreement shall specify the equity sharing agreement
comply with Section 20.32.140.
4. Monitoring of Compliance to Agreement. A monitoring program shall be required,
specifying the party responsible for certifying tenant incomes and sales price,
maintaining the required number of affordable units for the property, marketing and
filling unit vacancies.
5. Remedies. Description of remedies for breach of the affordable housing agreement
by either party (the City may identify tenants or qualified purchasers as third -party
beneficiaries under the agreement).
6. Description of Density Bonus. A description of the incentives and/or concessions,
if any, being provided by the City.
7. Schedule. A schedule for completion and occupancy of the affordable units.
8. Other Provisions. Other provisions to ensure implementation and compliance with
this chapter.
Section 3: Table 5-1 of Subsection B of Section 20.50.030 (Multiple Permit
Applications) of Title 20 (Planning and Zoning) the NBMC is hereby amended to read as
follows:
TABLE 5-1
REVIEW AUTHORITY
Type of Action
Applicable
Code
Chapter/Section
Role of Review Authority (1 )
Director
Zoning
Administrator
Hearing
Officer
Commission
Council
(2)
Administrative and Legislative
Interpretations
Section
20.12.020
Determination
(3)
Appeal
Appeal
Planned
Communities
Chapter 20.56
Recommend
Decision
Specific Plans
Chapter 20.58
Recommend
Decision
Zoning Code
Amendments
Chapter 20.66
Recommend
Decision
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TABLE 5-1
REVIEW AUTHORITY
Apphcaoie
Rt)1� VI r% IOW A�iC1!(IUf1 ('1)
Type of Action
Code
Zoning
Hearing
Council
Chapter/Section
Director
Administrator
Officer
Commission
(2)
Zoning Map
Chapter 20.66
Recommend
Decision
Amendments
Permits and Approvals
Affordable
Chapter 20.32
Decision (3)
Appeal/
Appeal/
Housing
(4)
Decision (4)
Decision
Implementation
(4)
Plan
Comprehensive
Decision (3)
Appeal
Sign Program
Conditional Use
Section
Decision
Appeal
Permits
20.52.020
Conditional Use
Section
Decision
Appeal
Permits—
20.52.030
Residential Zones
HO
Heritage Sign
Decision
Appeal
Innovative Sign
Decision
Appeal
Program
Limited Term
Section
Decision (3)
Appeal
Appeal
Permits
20.52.040
Minor Use Permits
Section
Decision (3)
Appeal
Appeal
20.52.020
Modification
Section
Decision (3)
Appeal
Appeal
Permits
20.52.050
Planned
Section
Decision
Appeal
Development
20.52.060
Permits
Reasonable
Section
Decision
Appeal
Accommodations
20.52.070
Sign Permits
Chapter 20.42
Determination
Appeal
Appeal
(3)
Site Development
Section
Decision (3)
Decision
Appeal
Reviews (See
20.52.080
Table 5-2 (Review
Authority for Site
Development
Reviews))
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TABLE 5-1
REVIEW AUTHORITY
ApplicableRole
of Review AuinorRy (1)
Type of Action
Code
Chapter/Section
Director
Zoning
Administrator
Hearing
Officer
Commission
Council
(2)
Variances
Section
Decision
Appeal
20.52.090
Zoning Clearances
Section
Determination
Appeal
Appeal
20.52.100
(3)
Notes:
(1) "Recommend" means that the Commission makes a recommendation to the Council;
"Determination" and "Decision" mean that the review authority makes the final determination
or decision on the matter; "Appeal' means that the review authority may consider and decide
upon appeals to the decision of a previous decision -making body, in compliance with chapter
20.64 (Appeals).
(2) The Council is the final review authority for all applications in the City.
(3) The Director or Zoning Administrator may defer action and refer the request to the
Commission for consideration and final action.
(4) The Zoning Administrator shall be the initial review authority for density bonus units and
parking reductions. The Planning Commission shall be the initial review authority for
concessions, incentives and waivers. The City Council shall be the review authority for any
financial incentive or fee waiver.
Section 4: Section 20.52.015 (Affordable Housing Implementation Plan) of Title
20 (Planning and Zoning) the NBMC is hereby added to read as follows:
20.52.015 Affordable Housing Implementation Plan.
A. Purpose. An affordable housing implementation plan (AHIP) provides a process to
review and grant density bonuses, concessions, incentives, and development
standard waivers in compliance with Government Code Section 65915 et seq. and
chapter 20.32.
B. Applicability. An affordable housing implementation plan shall be required for any
application that which proposes a density bonus, concession, incentive, or waiver of
development standard pursuant to chapter 20.32.
C. Application Contents.
1. A legal description of the project site where the target dwelling units will be located
including a statement of present ownership and present and proposed zoning.
2. A letter signed by the present owner stating what specific density bonus, incentives
or concessions, waivers or modifications in development standards are being
requested from the City and if reduced parking pursuant to Section 20.32.060 is
being requested.
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3. A detailed vicinity map showing the project location and such details as the location
of the nearest commercial retail, transit stop, potential employment locations, park
or recreation facilities or other social or community service facilities.
4. Site plans, floor plans, and building elevations, which shall designate the total
number of units proposed on the site, including the number and location of target
dwelling units and density bonus dwelling units, and supporting plans per the
application submittal requirements.
5. If the project site contains existing dwelling units, a description of the existing
dwelling units. This shall include the number of units, whether owner -occupied or
rentals, the number of bedrooms in each of the units, and evidence to household
income of occupants for the previous five (5) years.
6. In the case of a request for any incentive or concession, evidence that the request
will result in identifiable and actual cost reductions.
7. In the case of a request for a waiver or reduction of development standards,
evidence that the development standard being waived or reduced will have the
effect of physically precluding the construction of the development at the densities
proposed.
D. Application Filing, Processing, and Review. An application for an affordable housing
implementation plan shall be filed and processed in compliance with chapter 20.50
(Permit Application Filing and Processing). The application shall include all of the
information and materials specified in Section 20.52.015(C), together with the required
fee in compliance with the City's fee schedule adopted by resolution.
E. Project Review and Notice and Hearing Requirements. Notice of the public hearing
shall be provided and the hearing shall be conducted in compliance with
chapter 20.62 (Public Hearings).
F. Findings. The review authority shall approve an affordable housing implementation
plan, unless at least one finding for denial is made pursuant to Sections 20.32.070(A),
20.32.080(A), or 20.32.090(A).
G. Post -Decision Procedures. The procedures and requirements in chapter 20.54
(Permit Implementation, Time Limits, and Extensions), and those related to appeals
and revocation in Part 6 of this title (Zoning Code Administration) shall apply following
the decision on a affordable housing implementation plan application.
Section 5: Section 20.70.020 (Definitions of Specialized Terms and Phrases) of
Title 20 (Planning and Zoning) the NBMC is hereby amended to add the following definitions
with all other definitions to remain unchanged:
"Density bonus" See Section 20.32.020.
091
17-76
"Extremely low-income household" means persons and families whose income does not
exceed thirty (30) percent of the area median income for Orange County, as published by
the California Department of Housing and Community Development, adjusted for family size
and revised annually.
"Low-income household" means persons and families whose income is greater than fifty
(50) percent but does not exceed eighty (80) percent of the area median income for Orange
County, as published by the California Department of Housing and Community
Development, adjusted for family size and revised annually.
"Moderate -income household" means persons and families whose income is greater than
eighty (80) percent but does not exceed one hundred twenty (120) percent of the area
median income for Orange County, as published by the California Department of Housing
and Community Development, adjusted for family size and revised annually.
"Very low-income household" means persons and families whose income is greater than
thirty (30) percent but does not exceed fifty (50) percent of the area median income for
Orange County, as published by the California Department of Housing and Community
Development, adjusted for family size and revised annually.
24
17-77
STATE OF CALIFORNIA
COUNTY OF ORANGE ss.
CITY OF NEWPORT BEACH
I, Leilani I. Brown, City Clerk of the City of Newport Beach, California, do hereby certify that the
whole number of members of the City Council is seven; that the foregoing ordinance, being Ordinance
No. 2022-18 was duly introduced on the 23,d day of August, 2022, at a regular meeting, and adopted by
the City Council at a regular meeting duly held on the 13'h day of September, 2022, and that the same
was so passed and adopted by the following vote, to wit:
AYES: Mayor Kevin Muldoon, Mayor Pro Tern Noah Blom, Council Member Brad Avery, Council
Member Joy Brenner, Council Member Diane Dixon, Council Member Duffy Duffield,
Council Member Will O'Neill
NAYS: None
IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of
said City this 14th day of September, 2022.
STATE OF CALIFORNIA }
COUNTY OF ORANGE }
CITY OF NEWPORT BEACH }
Leilani I. Brown, MMC
City Clerk
City of Newport Beach, California
�'FO W41.5
CERTIFICATE OF PUBLICATION
ss.
I, LEILANI I. BROWN, City Clerk of the City of Newport Beach, California, do hereby certify that
Ordinance No. 2022-18 has been duly and regularly published according to law and the order of the City
Council of said City and that same was so published in The Daily Pilot, a newspaper of general circulation
on the following dates:
Introduced Ordinance: August 27, 2022
Adopted Ordinance: September 17, 2022
In witness whereof, I have hereunto subscribed my name this day of September, 2022.
y
Leilani I. Brown, MMC
i
City Clerk
City of Newport Beach, California
17-78
Attachment D
Resolution No. 2022-56
17-79
RESOLUTION NO. 2022-56
A RESOLUTION OF THE CITY OF NEWPORT BEACH,
CALIFORNIA, AUTHORIZING SUBMITTAL OF LOCAL
COASTAL PROGRAM AMENDMENT NO. LC2020-004 TO
THE CALIFORNIA COASTAL COMMISSION TO AMEND
TITLE 21 (LOCAL COASTAL PROGRAM
IMPLEMENTATION PLAN) OF THE CITY OF NEWPORT
BEACH MUNICIPAL CODE RELATED TO DENSITY
BONUSES TO COMPLY WITH STATE LAW (PA2020-032)
WHEREAS, Section 200 of the City of Newport Beach ("City") Charter vests the
City Council with the authority to make and enforce all laws, rules and regulations with
respect to municipal affairs subject only to the restrictions and limitations contained in the
Charter and the State Constitution, and the power to exercise, or act pursuant to any and
all rights, powers, and privileges, or procedures granted or prescribed by any law of the
State of California;
WHEREAS, Section 30500 of the California Public Resources Code requires
each county and city to prepare a Local Coastal Program ("LCP") for that portion of the
coastal zone within its jurisdiction;
WHEREAS, in 2005, the City of Newport Beach ("City") adopted the City of
Newport Beach Local Coastal Program Coastal Land Use Plan as amended from time to
time;
WHEREAS, the California Coastal Commission effectively certified the City's
Local Coastal Program Implementation Plan on January 13, 2017, and the City added
Title 21 (Local Coastal Program Implementation Plan) ("Title 21") to the City of Newport
Beach Municipal Code ("NBMC") whereby the City assumed coastal development permit -
issuing authority on January 30, 2017;
WHEREAS, Chapter 20.32 (Density Bonus) of the NBMC sets forth the City's
requirements for granting density bonuses in compliance with California Government
Code Section 65915 et seq. ("State Density Bonus Law");
WHEREAS, since Chapter 20.32 (Density Bonus) of the NBMC was last updated
in 2010 pursuant to Ordinance No. 2010-21, the California Legislature has adopted 18
bills that amend various sections of the State Density Bonus Law;
17-80
Resolution No. 2022-56
Page 2 of 4
WHEREAS, revisions to Chapter 20.32 (Density Bonus) and the addition of
Chapter 21.32 (Density Bonus) are necessary in order to ensure consistency with the
State Density Bonus Law;
WHEREAS, the City is adding Chapter 21.32 (Density Bonus) in accordance with
Policy Action 4C of the 2021-2029 General Plan Housing Element;
WHEREAS, on April 14, 2020, the City Council initiated Local Coastal Program
Amendment No. LC2020-004 pursuant to Resolution No. 2020-36;
WHEREAS, pursuant to Section 13515 (Public Participation and Agency
Coordination Procedures) of the California Code of Regulations Title 14, Division 5.5,
Chapter 8, Subchapter 2, Article 5 ("Public Participation"), drafts of Local Coastal Program
Amendment No. LC2020-004 were made available and a Notice of Availability was
distributed at least six (6) weeks prior to the anticipated final action date;
WHEREAS, the Planning Commission opened the public hearing to consider
Local Coastal Program Amendment No. LC2020-004 on July 7, 2022, and continued the
hearing to July 21, 2022 in the Council Chambers located at 100 Civic Center Drive,
Newport Beach, California. A notice of time, place and purpose of the public hearing was
given in accordance with Government Code Section 54950 et seq. ("Ralph M. Brown
Act") and Chapter 21.62 (Public Hearings) of the NBMC;
WHEREAS, at the continued hearing evidence, both written and oral, was
presented to, and considered by, the Planning Commission;
WHEREAS, at the conclusion of the hearing , the Planning Commission adopted
Resolution No. PC2022-019 by a unanimous vote (7 ayes - 0 nays), recommending
approval of Local Coastal Program Amendment No. LC2020-004 to the City Council; and
WHEREAS, a duly noticed public hearing was held by the City Council on August
23, 2022, in the Council Chambers located at 100 Civic Center Drive, Newport Beach,
California. A notice of time, place and purpose of the public hearing was given in
accordance with the Ralph M. Brown Act and Chapter 21.62 (Public Hearings) of the
NBMC. Evidence, both written and oral, was presented to, and considered by, the City
Council at this public hearing.
NOW, THEREFORE, the City Council of the City of Newport Beach ordains as
follows:
17-81
Resolution No. 2022-56
Page 3 of 4
Section 1: The City Council authorizes staff to submit Local Coastal Program
Amendment No. LC2020-004 to amend Chapter 21.32 (Density Bonus) of the NBMC as set
forth in Exhibit 'A" which is attached hereto and incorporated by reference, to the California
Coastal Commission.
Section 2: Local Coastal Program Amendment No. LC2020-004 is consistent
with and implements California Government Code Section 65915 et. seq.
Section 3: Local Coastal Program Amendment No. LC2020-004 is consistent
with the Policy Action 4C and Housing Policy 2.1 of the 2021-2029 Housing Element in
that it would bring the City's density bonus regulations into compliance with State Density
Bonus Law and provide a method for the City to review and approve density bonuses.
Section 4: Local Coastal Program Amendment No. LC2020-004 shall not
become effective until approval by the California Coastal Commission and adoption,
including any modifications suggested by the California Coastal Commission, by
resolution and/or ordinance of the City Council of the City of Newport Beach.
Section 5: The Local Coastal Program Land Use Plan and Title 21 (Local
Coastal Program Implementation Plan) including Local Coastal Program Amendment No.
LC2020-004, if approved, will be carried out fully in conformity with the California Coastal
Act.
Section 6: The recitals provided in this resolution are true and correct and are
incorporated into the operative part of this resolution.
Section 7: If any section, subsection, sentence, clause or phrase of this
resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not
affect the validity or constitutionality of the remaining portions of this resolution. The City
Council hereby declares that it would have passed this resolution, and each section,
subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or
more sections, subsections, sentences, clauses or phrases be declared invalid or
unconstitutional.
17-82
Resolution No. 2022-56
Page 4 of 4
Section 8: Local Coastal Program Amendment No. LC2020-004 is exempt from
environmental review under the California Environmental Quality Act ("CEQA") pursuant
to Section 15061(b)(3) of the CEQA Guidelines, California Code of Regulations, Title 14,
Division 6, Chapter 3, the general rule that CEQA applies only to projects, which have the
potential for causing a significant effect on the environment. The amendment specifies
how the City will comply with and implement State Density Bonus Law. The bonuses,
incentives, and waivers permitted by the ordinance are already allowed pursuant to state
law. The amendment is further exempt from CEQA pursuant to Section 15265(a)(1),
which exempts local governments from the requirements of CEQA in connection with the
adoption of a Local Coastal Program.
Section 9: This resolution shall take effect immediately upon its adoption by the
City Council, and the City Clerk shall certify the vote adopting the resolution.
ADOPTED this 23rd day of August 2022.
Leilani I. E
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
Aaron C. Harp
City Attorney
Attachment(s): Exhibit A — Local Coast Program Amendment No. LC2020-004
17-83
STATE OF CALIFORNIA
COUNTY OF ORANGE } ss.
CITY OF NEWPORT BEACH
I, Leilani I. Brown, City Clerk of the City of Newport Beach, California, do hereby certify that the
whole number of members of the City Council is seven; the foregoing resolution, being Resolution
No. 2022-56 was duly introduced before and adopted by the City Council of said City at a regular meeting
of said Council held on the 23rd day of August, 2022; and the same was so passed and adopted by the
following vote, to wit:
AYES: Mayor Kevin Muldoon, Mayor Pro Tem Noah Blom, Council Member Brad Avery,
Council Member Joy Brenner, Council Member Diane Dixon, Council Member
Duffy Duffield
NAYS: None
ABSENT: Council Member Will O'Neill
IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of
said City this 241h day of August, 2022.
(4*
Leilani I. Brown
City Clerk
Newport Beach, California
PV,\)V P
F U 1kt�i0
17-84
Exhibit A —
Local Coastal Program Amendment No. LC2020-004
Section 1: Subsection (C)(1) of Section 21.12.020 (Rules of Interpretation) of
Chapter 21.12 (Interpretation of Implementation Plan Provisions) of Title 21 (Local Coastal
Program Implementation Plan) of the NBMC is hereby amended to read as follows-
C. Calculations.
Residential Density. Except for projects that include a density bonus in
accordance with Section 21.32.040(A), when the number of dwelling units
allowed on a site is calculated based on the minimum site area per dwelling
unit, any fraction of a unit shall be rounded down to the next lowest whole
number. For example, where a residential zoning district requires a minimum
site area per dwelling unit of one thousand five hundred (1,500) square feet; a
site of ten thousand (10,000) square feet would be allowed six (6) dwelling
units (10,000 sq. ft/1,500 sq. ft. per dwelling unit = 6.66 dwelling units, which
is rounded down to six (6) dwelling units).
Section 2: Chapter 21.32 (Density Bonus) of Title 21 (Interpretation of
Implementation Plan Provisions) of the NBMC is hereby added to read as follows:
Chapter 21.32
DENSITY BONUS
Sections:
21.32.010
Purpose.
21.32.020
Definitions.
21.32.025
Coastal Act Consistency.
21.32.030
Eligibility for Density Bonus and Incentives.
21.32.040
General Requirements.
21.32.050
Allowed Density Bonuses.
21.32.060
Parking Requirements in Density Bonus Projects.
21.32.070
Allowed Incentives or Concessions.
21.32.080
Waivers or Reductions of Development Standards.
21.32.090
Incentives for Housing with Childcare Facilities.
21.32.100
Condominium Conversions.
21.32.110
Design and Distribution of Affordable Units.
21.32.121
Replacement Units.
21.32.130
Continued Availability.
21.32.140
Occupancy and Resale of Ownership Units.
21.32.150
Approval Process.
21.32.160
Affordable Housing Agreement.
1
17-85
21.32.010 Purpose.
The purpose of this chapter is not intended to expand the requirements of Governmeni
Code Sections 65915 through 65918, as the same may be amended from time to time,
but rather to provide a means for granting density bonuses and incentives as required by
state law. This chapter provides regulations for considering density bonus and incentive
requests for the development of housing that is affordable to extremely low-, very low-,
low-, and moderate -income households, foster youth, disabled veterans, homeless
persons, lower -income students, senior citizens, and childcare.
21.32.020 Definitions.
As used in this chapter, the following words shall have the following meanings:
A. "Affordable housing" means housing for which the allowable housing expenses paid
by a qualifying household shall not exceed a specified fraction of the county median
income, adjusted for household size. This includes housing designated for extremely
low-, very low-, low-, and moderate -income households.
B. "Childcare facility" means a child day care facility, other than a family day care home,
including, but not limited to, infant centers, preschools, extended day care facilities,
and school -age childcare center. "Childcare facility" does not include public or private
primary or secondary education facilities.
C. "Condominium conversion" means the conversion of apartments, or other rental units,
into ownership property that consist of an undivided interest in common in a portion of
real property coupled with a separate interest within the boundaries of the dwelling
unit.
D. "Density bonus" means a density increase over the maximum allowable residential
density under applicable zoning and Land Use Element of the General Plan as of the
date of application.
E. "Development standard" means a site or construction condition, including, but not
limited to, a height limitation, setback requirement, floor area ratio, an onsite open -
space requirement, or a parking ratio that applies to a housing development pursuant
to any ordinance, General Plan policy, specific plan, or other local condition, law,
policy, resolution, or regulation. Development standard shall not mean an impact fee,
inclusionary housing requirement, or dedication of land.
F. "Disabled veteran" means any veteran who is currently declared by the United States
Veterans Administration to be ten (10) percent or more disabled as a result of service
in the armed forces. Proof of such disability shall be deemed conclusive if it is of record
in the United States Veterans Administration.
G. "Equivalent financial value" means an incentive that would result in a reduction in cost
to the developer/property owner based upon the land cost per dwelling unit and shall
2
17-86
be calculated based upon the difference in the value of the land with and without the
density bonus.
H. "Equivalent size" means that the replacement units specified in Section 21.32.120
contain at least the same total number of bedrooms as the units being replaced.
I. "Foster youth" means a person in California whose dependency was established or
continued by a court of competent jurisdiction, including a tribal court, on or after the
youth's 13th birthday and who is no older than 25 years of age at the commencement
of the academic year.
J. "Homeless person" shall have the same meaning as that phrase is defined in Section
11302 of the federal McKinney-Vento Homeless Assistance Act (42U.S.C. Ch. 119).
K. "Housing development" means a development project for five (5) or more residential
dwelling units, including mixed -use developments, subdivisions, or common interest
development. A "housing development" may consist of residential units, unimproved
residential lots, a project to substantially rehabilitate and convert an existing
commercial building to residential use, or the substantial rehabilitation of an existing
multifamily dwelling where the result of the rehabilitation would result in a net increase
in available residential units. For purposes of calculating a density bonus, the
residential units shall be on contiguous sites that are the subject of one (1)
development application but may include more than one subdivision map.
L. "Lower income student" means a student who has a household income and asset level
that does not exceed the level for Cal Grant A or Cal Grant B award recipients as set
forth Education Code Section 69432.7(k)(1). 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 enrolled or by the California Student Aid Commission that the student
receives or is eligible for financial aid, including an institutional grant or fee waiver from
the college or university, the California Student Aid Commission, or the federal
government.
M. "Major transit stop" means a site containing an existing rail transit station or the
intersection of two (2) or more major bus routes with a frequency of service interval of
fifteen (15) minutes or less at the intersection of the two (2) routes during both the
morning and aftemoon peak commute hours.
N. "Natural or constructed impediments" means a hindrance or obstruction that prevents
pedestrian or bicycle access to a major transit stop. Natural or constructed
impediments include, but are not limited to, freeways, rivers, mountains, harbors, and
bodies of water, but does not include residential structures, shopping centers, parking
lots, or rails used for transit.
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17-87
O. "Specific adverse impact" means a significant, quantifiable, direct, and unavoidable
impact, based on objective, identified written public health or safety standards,
policies, or conditions as they existed on the date the application was deemed
complete. The following shall not constitute a specific, adverse impact upon the public
health or safety: (1) inconsistency with the zoning or General Plan land use
designation, or (2) the eligibility to claim a welfare exemption under subdivision (g) of
Section 214 of the Revenue and Taxation Code.
P. "Unobstructed access" means that the income qualified resident of the housing
development is able to walk or bike to from the residence without trespassing or
otherwise encountering natural or constructed impediments.
21.32.025 Costal Act Consistency.
A. California Government Code Section 69515(m) provides that density bonus law shall
not be construed to supersede or in any way alter or lessen the effect or application
of the California Coastal Act of 1976.
B. A requested density bonus and any requested incentive, concession, waiver,
modification, or modified parking standard shall comply with all applicable standards
and use regulations of the certified Local Coastal Program Implementation Plan, with
the exception of the development standards waived, reduced, or modified through
density bonus provisions. In no case shall the coastal resource protection
development regulations of Sections 21.28.040 (Bluff (B) Overlay District), 21.28.050
(Canyon (C) Overlay District), 21.28.015(D) (Waterfront Development),
21.30.015(E)(2) (Development in Shoreline Hazardous Areas) and 21.30.100 (Scenic
and Visual Quality Protection), or Chapters 21.30A (Public Access and Recreation)
Chapter 21.30B (Habitat Protection) be waived, reduced, or modified.
21.32.030 Eligibility for Density Bonus and Incentives.
A. To be eligible for a density bonus, incentive(s) or concession(s), or waiver or reduction
of development standard(s) as provided by this chapter, a housing development or
condominium conversion shall include only one (1) of the following requirements and
satisfy all other applicable provisions of this Local Coastal Program Implementation
Plan.
1. A minimum of five (5) percent of the total number of units of a housing development
shall be restricted and affordable to very low-income households.
2. A minimum of ten (10) percent of the total number of units of a housing
development shall be restricted and affordable to low-income households.
3. A minimum often (10) percent of the total units in a for -sale housing development
shall be restricted and affordable to moderate -income households provided that all
units in the housing development are offered to the public for purchase.
CI
17-88
4. One hundred (100) percent of all units in a housing development, exclusive of a
manager's unit or units shall be restricted and affordable to lower -income
households, except that no more than twenty (20) percent of the units in the
housing development, including total units and density bonus units, may be
affordable to moderate -income households.
5. A minimum of ten (10) percent of the total units of a housing development for
transitional foster youth, disabled veterans, or homeless persons shall be provided
at the same affordability level as very low-income units.
6. A minimum of twenty (20) percent of the total units of a housing development shall
be affordable to lower -income college students.
7. A condominium conversion project where either thirty-three (33) percent of the
units converted are affordable to low- or moderate -income households, or fifteen
(15) percent of the units converted are affordable to very low- or extremely low-
income households.
8. A senior citizen housing development, as defined in Civil Code Sections 51.3 and
51.12, that has at least thirty-five (35) dwelling units or a mobile home park that
limits residency based on age requirements for housing older persons in
compliance with Civil Code Sections 798.76 or 799.5.
9. The applicant for a housing development donates at least one (1) acre of land to
the City for very low-income units, provided the land has the appropriate General
Plan designation, zoning, permits and approvals, and access to public facilities
needed for such housing.
B. Housing Development Not Eligible for a Density Bonus, Concession, Incentive, or
Waiver. A housing development shall not be eligible for a density bonus, or any
incentive, concession, or waiver of a development standard under this chapter on a
parcel containing existing affordable housing unless:
1. The housing development replaces the existing affordable units in accordance with
all of the requirements set forth in Section 21.32.120; and
2. The housing development, inclusive of the units replaced pursuant to this section,
contains affordable units at one (1) of the percentage levels set forth in Section
21.32.030(A).
21.32.040 General Requirements.
A. Fractional Units. The calculation of a density bonus in compliance with this section
that results in fractional units, including base density and bonus density, shall be
rounded up to the next whole number.
5
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B. Mixed Income Development. If a housing development qualifies for a density bonus
under more than one (1) income category; as senior housing; or as housing intended
to serve transitional foster youth, disabled veterans, or homeless persons; the
applicant shall select only one (1) of the above categories in the application. Density
bonuses from more than one (1) category may not be combined.
C. General Plan & Zoning Consistency. The granting of a density bonus, in and of itself,
shall not be interpreted as requiring a General Plan amendment, Zoning Map
amendment, or other discretionary approval.
D. Financial Incentives. The provisions of this chapter shall not be interpreted to require
or limit the City from providing direct financial incentives, including the provision of
publicly owned land or the waiver of fees or dedication requirements.
E. Increased Density Limit. A housing development shall not exceed the cumulative total
of base units allowed by the underlying zone and the density bonus units allowed by
Section 21.32.050. Incentives, concessions, or development standard waivers shall
not be used to increase density.
F. Reduced Density. An applicant for a density bonus may elect to provide a lesser
percentage of density increase than what is authorized by Section 21.32.050
including, but not limited to, no increase in density, but shall remain eligible for
concessions or incentives, waivers of development standards, and eligible parking
requirements provided the project meets the eligibility requirements of this section.
21.32.050 Allowed Density Bonuses.
A housing development that meets one (1) of the eligibility levels in Section 21.32.030 is
entitled to a density bonus as provided herein.
A. Density Bonus for Very Low-, Low-, and Moderate -Income Households. A housing
development that is eligible for a density bonus pursuant to Section 21.32.030(A)(1)
through Section 21.32.030(A)(4) is entitled to a density bonus calculated as follows:
TABLE 21.32-1
VERY -LOW, LOW, AND MODERATE
Density Bonus Percentage
Percentage of
Base
Units Proposed
Very -Low Income
Low Income
Moderate Income
5%
20%
-
-
6%
22.5%
-
-
7%
25%
-
-
8%
27.5%
-
-
9%
30%
-
-
0
17-90
10%
32.5%
20%
5%
11 %
35%
21.5%
6%
12%
38.75%
23%
7%
13%
42.5%
24.5%
8%
14%
46.25%
26%
9%
15%
50%
27.5%
10%
16%
50%
29%
11%
17%
50%
30.5%
12%
18%
50%
32%
13%
19%
50%
33.5%
14%
20%
50%
35%
15%
21 %
50%
38.75%
16%
22%
50%
42.5%
17%
23%
50%
46.25%
18%
24%
50%
50%
19%
25%
50%
50%
20%
26%
50%
50%
21%
27%
50%
50%
22%
28%
50%
50%
23%
29%
50%
50%
24%
30%
50%
50%
25%
31 %
50%
50%
26%
32%
50%
50%
27%
33%
50%
50%
28%
34%
50%
50%
29%
35%
50%
50%
30%
36%
50%
50%
31%
37%
50%
50%
32%
38%
50%
50%
33%
39%
50%
50%
34%
40%
50%
50%
35%
41 %
50%
50%
38.75%
42%
50%
50%
42.5%
43%
50%
50%
46.25%
44%
50%
50%
50%
100%
80%
80%
80%
Notwithstanding the foregoing, a cap on density will not apply if both of the following
conditions are met:
1. One hundred (100) percent of the units in a housing development exclusive of
manager's units, are restricted and affordable to very -low and low-income
households, except that no more than twenty (20) percent of the total units
(including density bonus units) in the housing development are restricted and
affordable to moderate -income households.
7
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2. The housing development is located within one-half (Y2) mile of a major transit stop
with unobstructed access.
B. Density Bonus for Transitional Foster Youth, Disabled Veterans, or Homeless
Persons. A housing development that is eligible for a density bonus at the level set
forth in Section 21.32.030(A)(5) shall be entitled to a density bonus of twenty (20)
percent.
C. Density Bonus for Lower -Income College Students. A student housing development
that is eligible for a density bonus at the level set forth in Section 21.32.030(A)(6) shall
be entitled to a density bonus of thirty-five (35) percent.
All units in the student housing development shall be used exclusively for
undergraduate, graduate, or professional 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.
2. The applicant or property owner shall provide evidence to the City that the housing
development shall be subject to an operating agreement or lease with one (1) or
more institution of higher education that all units shall be exclusively occupied by
the students of the institution(s).
3. The rent for affordable units shall be calculated at thirty (30) percent of sixty-five
(65) percent of the area median income for a single -room occupancy unit.
4. Priority for the affordable units shall be given to lower -income students
experiencing homelessness. A homeless service provider, as defined in paragraph
(3) of subdivision (e) of Section 103577 of the Health and Safety Code, or
institution of higher education that has knowledge of a person's homeless status
may verify a person's status as homeless for purposes of this subsection.
5. For purposes of calculating a density bonus granted pursuant to this section, the
term "unit" shall mean one (1) rental bed and its pro rata share of associated
common area facilities.
D. Density Bonus for Condominium Conversion. A condominium conversion that is
eligible for a density bonus pursuant to Section 21.32.030(A)(7) shall be entitled to a
density bonus of twenty-five (25) percent provided the condominium conversion meets
all of the requirements in Section 20.32.100.
E. Density Bonus for Senior Housing. A senior housing development that is eligible for a
density bonus pursuant to Section 21.32.030(A)(8) shall be entitled to a density bonus
of twenty (20) percent.
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F. Density Bonus for donating land for very low-income units. A housing development
that includes the donation of land for the development of very low-income housing
pursuant to Section 21.32.030(A)(9) shall be entitled to a density bonus calculated as
follows:
TABLE 21.32-2
LAND DEDICATED TO ACCOMMODATE VERY LOW-INCOME
Percentage of
Base
Units Proposed
Density Bonus
Percentage
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%
1. Any increase authorized by this subsection may be approved in addition to any
increase in density allowed by Section 21.32.030 up to a maximum combined
density increase of thirty-five (35) percent.
2. The donated land shall be the greater of:
a. One (1) acre;
b. Sufficient square -footage or acreage to permit development of the
percentage of base units proposed; or
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c. Sufficient square -footage or acreage to permit development of forty (40)
units under the existing General Plan and zoning designation.
3. The existing General Plan and zoning designation of the donated land shall be
zoned to accommodate at least thirty (30) dwelling units per acre, and is, or will
be, served by adequate public facilities and infrastructure through the construction
of the housing development.
4. The land shall be donated and transferred to the City or a housing developer that
is approved by the City. The applicant shall donate and transfer the land no later
than the date of approval of the final subdivision map, or issuance of building
permits for the housing development where no subdivision is required.
5. The City shall not approve the final subdivision map or issue building permits for
the housing development unless and until all permits, other than building permits,
for the development of very low-income housing have been issued for the donated
and transferred land.
6. The donated and transferred land shall be within the boundary of the housing
development, or upon approval of the review authority, within one -quarter ('/4) mile
of the housing development.
7. The source of funding for the development of very low-income housing on the
donated and transferred land shall be identified not later than the date of approval
of the final subdivision map or issuance of building permits for the housing
development.
8. The donated and transferred land and the affordable units shall be subject to a
deed restriction recorded on the property at the time of transfer ensuring continued
affordability of the units consistent with Section 21.32.130.
21.32.060 Parking Requirements in Density Bonus Projects.
A. Applicability. For a housing development that meets one (1) of the eligibility levels in
Section 21.32.030, the applicant may request application of the parking requirements
set forth below. An applicant may request additional parking incentives beyond those
provided in this section in compliance with Sections 21.32.070 and 21.32.080.
B. Number of Parking Spaces Required.
Parking Ratios. At the request of the applicant, the following minimum parking
ratios apply to the housing development:
Dwelling Unit Size
Onsite Parking per
Unit
Studio to 1 Bedroom
1 space
2 to 3 Bedrooms
1.5 spaces
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4 or more Bedrooms 1 2.5 spaces
2. Within One -Half Mile ('/2) of Major Transit Stop. Notwithstanding subsection B(1),
if a housing development provides at least twenty (20) percent low-income units
or eleven (11) percent very low-income units and is located within one-half (Y2)
mile of a major transit stop with unobstructed access, then upon the request of
the developer, the City may not impose a vehicular parking ratio, inclusive of
handicapped and guest parking, that exceeds 0.5 spaces per bedroom.
3. Zero Parking. Notwithstanding subsection B(1), if a housing development
consists solely of rental units affordable to lower income families, then upon the
request of the developer, the City may not impose a vehicular parking ratio,
inclusive of handicapped and guest parking, if either of the following criteria are
met:
a. The housing development is located within one-half ('/2) mile of a major
transit stop with unobstructed access from the housing development;
b. The housing development is a for -rent housing development for individuals
who are 62 years of age or older that meet the definition in Sections 51.2
and 51.3 of the Civil Code and the housing development has either
paratransit service or unobstructed access within one-half ('/2) mile of a fixed
bus route that operates at least eight (8) times per day; or
c. The housing development is either a special needs housing development,
as defined in Section 51312 of the Health and Safety Code, or supportive
housing development as defined in Section 50675.14 of the Health and
Safety Code, and the housing development has either paratransit service
or unobstructed access within one-half ('/2) mile of a fixed bus route that
operates at least eight (8) times per day.
4. Notwithstanding subsections (13)(2) and (13)(3), the City may impose the parking
ratio set forth in subsection (13)(1), if the City or an independent consultant has
conducted an areawide or jurisdiction -wide parking study in the past seven (7)
years that demonstrates a higher parking ratio is necessary based upon 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 of market -rate and subsidized developments, and the
lower rates of car ownership for low-income and very low-income individuals,
including seniors and special needs individuals.
C. Location of Parking. For purposes of this section, a housing development may provide
on -site parking through uncovered or tandem on -site parking.
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D. Rounding of Partial Parking Spaces. If the total number of parking spaces required for
a housing development is other than a whole number, the number shall be rounded
up to the next whole number.
21.32.070 Allowed Incentives or Concessions.
A. Applicant Request and City Approval. The applicant shall include any request for
incentive(s) or concession(s) listed in subsection (C) of this section concurrently with
the application for project approval. The applicant shall provide documentation
establishing that an incentive or concession is necessary to make the housing units
economically feasible. When an applicant makes a request for an incentive or
concession, the review authority shall grant the request unless one (1) or more of the
following findings is made:
1. The incentive or concession is not required in order to provide affordable housing
costs or for rents for the targeted units to be set as specified in Section
21.32.130(B);
2. The incentive or concession would have a specific adverse impact upon public
health and safety, or on any real property listed in the California Register of
Historical Resources and for which there is no feasible method to satisfactorily
mitigate or avoid the specific adverse impact without rendering the development
unaffordable to low- and moderate -income households; or
3. The incentive would be contrary to state or federal law.
B. Number of Incentives or Concessions. Except as provided in subsection (A) of this
section, the review authority shall grant the following number of incentives or
concessions-
1 . One (1) incentive or concession for a housing development that includes at least
ten (10) percent of the total units for low-income households, at least five (5)
percent of the total units for very low-income households, at least twenty (20)
percent of the total units for low-income students in a student housing
development, or at least ten (10) percent of the total units for moderate -income
households in a for -sale housing development.
2. Two (2) incentives or concessions for a housing development that includes at least
seventeen (17) percent of the total units for low-income households, at least ten
(10) percent of the total units for very low-income households, or at least twenty
(20) percent of the total units for moderate -income households in a for -sale
housing development.
3. Three (3) incentives or concessions for a housing development that includes at
least twenty-four (24) percent of the total units for low-income households, at least
fifteen (15) percent of the total units for very low-income households, or at least
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thirty (30) percent of the total units for moderate -income households in a for -sale
housing development.
4. Four (4) incentives or concession for projects that meet the criteria of Section
21.32.030(A)(4). If the housing development is located within one-half (Y2) mile of
a major transit stop with unobstructed access, the housing development is eligible
for a height increase of up to three (3) additional stories, or thirty-three (33) feet.
C. Type of Incentive or Concession. For the purposes of this chapter, "incentive" or
"concession" mean any of the following:
1. A reduction in the development standard(s) as that term is defined in Section
21.32.020 that results in identifiable, financially sufficient, and actual cost
reductions;
2. A mixed -use project in conjunction with the housing development, if the
nonresidential portion of the mixed -use project will reduce the cost of the housing
development, is compatible with the residential portion of the housing
development, and is compatible with adjacent existing or planned development;
3. A reduction or waiver of any City imposed fee or dedication of land, which shall be
at the sole discretion of the City Council; and/or
4. Other regulatory incentives that will result in identifiable, financially sufficient, and
actual cost reductions.
21.32.080 Waivers or Reductions of Development Standards.
In addition to requesting an incentive or concession, an applicant for a density bonus may
also submit a proposal to the City to waive or reduce an unlimited number of development
standards that would otherwise preclude or inhibit construction of the housing
development at the densities or with the incentives permitted by this chapter.
A. When an applicant makes a request for a waiver, the review authority shall grant the
request unless any of the following findings are made:
1. The waiver or reduction of development standards would have a specific adverse
impact upon public health or safety, and for which there is no feasible method to
satisfactorily mitigate or avoid the specific adverse impact.
2. The waiver or reduction of development standards would have an adverse impact
on any real property listed in the California Register of Historical Resources.
3. The waiver or reduction of development standards would be contrary to state or
federal law.
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B. Notwithstanding Section 21.32.080(A), a housing development that is eligible for no
cap on density pursuant Section 21.32.050(A) shall only be eligible for a waiver or
reduction of development standards as provided in Section 21.32.070(B)(4).
21.32.090 Incentives for Housing with Childcare Facilities.
A. Incentives. A housing development that complies with the income requirements of
Section 21.32.030(A) and includes a childcare facility, other than a large or small
family day care home, that will be located on the same site as the development, shall
be eligible for either of the following additional incentives:
1. An amount of residential floor area equal to or greater than the floor area of the
childcare facility; or
2. An incentive that contributes to the economic feasibility of the childcare facility
(e.g., reduction of development standards, reduced parking requirements,
monetary contribution) as provided in Section 21.32.070(C).
Notwithstanding the foregoing, the City shall not be required to provide a density
bonus for a childcare facility if it finds that the community has adequate childcare
facilities.
B. Requirements to Qualify for Incentives. The City shall require, as a condition of
approval of the housing development, that:
1. The childcare facility shall remain in operation for a period of time that is as long
as, or longer than, the period of time during which the density bonus units are
required to remain affordable in compliance with Section 21.32.130; and
2. Of the children who attend the childcare facility, the children of very low-income,
low-income, or moderate -income households shall equal a percentage that is
equal to or greater than the percentage of dwelling units that are required for very
low-income, lower -income, or moderate -income households in compliance with
Section 21.30.030(A).
21.32.100 Condominium Conversions.
A. Density Bonus. When an applicant proposes to convert apartments to condominiums,
which meet the eligibility level in Section 21.32.030(A)(7), the City shall grant either a
density bonus of up to twenty-five (25) percent pursuant to Section 21.32.050(D) to
create additional units on the project site or other incentive of equivalent financial
value provided:
1. The applicant agrees to pay for the reasonably necessary administrative costs,
including, but not limited to, staff costs, consultant fees, photocopy costs, and
mailing fees, incurred by the City; and
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2. The City places such reasonable conditions on the granting of a density bonus or
other incentives of equivalent financial value as it finds appropriate, including, but
not limited to, conditions which assure continued affordability of units to
subsequent very low-, low- and moderate -income households.
B. Replacement Units. All units within the condominium conversion shall meet the
replacement requirements in Section 21.32.120.
C. Ineligible Requests. Apartments which are proposed for conversion to condominiums
shall be ineligible for a density bonus or other incentive under this section if the
apartments were previously granted a density bonus, concession, incentive, or waiver
or reduction of development standards.
D. Preapplication Process. An applicant may submit a preliminary application to the City
for the condominium conversion on a form provided by the Director prior to the
submittal of an application under Chapters 19.08 and 19.64. Within ninety (90) days
of receipt of the preliminary application, the City shall notify the applicant in writing
whether the application is eligible for a condominium conversion pursuant to this
section.
E. Approval. An application for condominium conversion shall meet the requirements set
forth in Chapter 19.64. Nothing in this section shall be construed to require the City
to approve an application for a condominium conversion.
21.32.110 Design and Distribution of Affordable Units.
Affordable units shall be designed and distributed within the housing development as
follows:
A. Number of Bedrooms. Affordable units shall reflect the range of numbers of bedrooms
provided in the residential development project as a whole;
B. Comparable Quality and Facilities. Affordable units shall constructed to the same
quality and exterior design as the market -rate housing units. Additionally, the
affordable units shall include the same laundry, recreation and other facilities that are
made available to the market -rate housing units;
C. Access. In mixed -income multi -unit structures, the occupants of the affordable units
shall have the same access to common entrances and any common areas including
parking areas in that structure as the occupants of the market -rate housing units;
D. Size. Affordable units may be smaller and have different interior finishes and features
than the market -rate units; and
E. Location. Affordable units shall be distributed within the residential development,
unless clustering is allowed by the review authority. Notwithstanding, in a mixed-
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income multi -unit structure, affordable units shall not be isolated to a specific floor or
an area of a specific floor.
21.32.120 Replacement Units.
An application for a density bonus on any property with existing rental dwelling units or
rental dwelling units that were vacated or demolished within the five (5) years preceding
the application; and are, or were, subject to a recorded covenant that restricts rents to
very low- or low-income households; or are, or were, occupied by very low- or low-income
household(s) shall be subject to all of the following requirements:
A. Occupied Units. For rental dwelling units that are occupied on the date of the
application, the housing development shall provide at least the same number of
affordable units of equivalent size at affordable rent or affordable housing cost to, and
occupied by, persons or families in the same or lower income category as the existing
occupants.
B. Vacant or Demolished Units. For rental dwelling units that have been vacated or
demolished within the five (5) years preceding the application, the housing
development shall provide at least the same number of affordable units of equivalent
size as existed at the highest occupancy point for those units in the five (5) years
preceding the application at affordable rent or affordable housing cost to, and
occupied by, persons and families in the same or lower -income category as the
persons or families that occupied the units immediately preceding the vacancy or
demolition.
C. Unknown Household Income. If the income of the existing occupants or occupants
within the past five (5) years is unknown to the City or the applicant, it shall be
rebuttably presumed that the rental dwellings units were occupied by low-income and
very low-income renter households as determined by the most recently available data
from the United States Department of Housing and Urban Development's
Comprehensive Housing Affordability Strategy database.
21.32.130 Continued Availability.
The units that qualified the housing development for a density bonus and other incentives
shall continue to be available as affordable and/or senior units in compliance with the
following requirements:
A. Duration of Availability. The applicant shall record a covenant on the property that the
units that qualified the housing development for a density bonus and other incentives
are restricted as affordable units for at least fifty-five (55) years, or a longer time if
required by the construction or mortgage financing assistance program, mortgage
insurance program, or rental subsidy program.
B. Affordable Costs. The rents and owner -occupied costs charged for the housing units
shall not exceed the following amounts during the period of continued availability
required by this section:
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1. Rental Units. Rents for density bonus units shall be set at an affordable rent as
defined in Health and Safety Code Section 50053; and
2. Owner -Occupied Units. Owner -occupied units shall be available at an affordable
housing cost as defined in Health and Safety Code Section 50052.5.
21.32.140 Occupancy and Resale of Ownership Units.
A housing development that includes for -sale units that are restricted and affordable to
moderate -income households shall limit the occupancy and resale of the units as set forth
in this section.
A. Initial Occupancy. A for -sale unit, which qualified the applicant for the award of the
density bonus, shall meet either of the following requirements:
1. The unit is initially occupied by a very low-, low-, or moderate -income household,
offered at an affordable housing cost as defined in Section 50052.5 of the Health
and Safety Code, and subject to an equity sharing agreement; or
2. The unit is purchased by a qualified nonprofit housing corporation pursuant a
contract that is recorded on the property, and all of the following are satisfied:
a. The nonprofit housing corporation is organized pursuant to Internal Revenue
Code Section 501(c)(3) and has received a welfare exemption under Revenue
and Taxation Code Section 214.15 for properties intended to be sold to low-
income families who participate in a special no -interest loan program;
b. The contract restricts the use of the land for at least thirty (30) years to owner -
occupied housing that is available at an affordable housing cost;
c. The contract includes a deed of trust on the property in favor of the nonprofit
corporation to ensure compliance with the terms of the program, which has no
value unless the owner fails to comply with the covenants and restrictions of
the terms of the home sale;
d. The City Attorney finds that the long-term deed restrictions in the contract serve
a public purpose;
e. A repurchase option that requires a subsequent purchaser of the property that
desires to sell or convey the property to offer the qualified nonprofit corporation
the right to repurchase the property prior to selling or conveying that property
to any other purchaser; and
f. Affordability restrictions on the sale and conveyance of the property that ensure
that the property will be preserved for lower income housing for at least forty-
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five (45) years for owner -occupied housing units and will be sold or resold only
to very low-, low-, or moderate -income households.
B. Resale. As part of the affordable housing agreement required pursuant to Section
21.32.160, the applicant shall enter into an equity sharing agreement with the City for
the resale of affordable common interest units, unless it would be in conflict with the
requirements of another public funding source or law. In lieu of an equity sharing
agreement, the housing project could sell the units to a nonprofit housing corporation
pursuant to Section 21.32.140(A)(2). The following requirements apply to the equity
sharing agreement:
1. Upon resale, the seller of the unit shall retain the value of any improvements, the
down payment, and the seller's proportionate share of appreciation; and
2. The City shall recapture any initial subsidy and its proportionate share of
appreciation, which shall then be used within five (5) years for any of the purposes
described in Health and Safety Code Section 33334.2(e) that promote home
ownership. For the purposes of this section:
a. The City's initial subsidy shall be equal to the fair market value of the home at
the time of initial sale, minus the initial sale price, plus the amount of any down
payment 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;
b. The City's proportionate share of appreciation shall be equal to the ratio of the
initial subsidy to the fair market value of the home at the time of initial sale; and
c. The initial subsidy shall include any incentives granted by the City and shall be
equal to the monetary equivalent of the incentives.
21.32.150 Approval Process.
An applicant requesting a density bonus, incentive, concession, or waiver pursuant to this
chapter shall require approval of an Affordable Housing Implementation Plan pursuant to
Sections 20.50.030 and 20.52.015.
21.32.160 Affordable Housing Agreement.
The applicant approved for a density bonus, concession, incentive, or waiver under this
chapter shall agree to construct, operate and maintain the affordable units in accordance
with an affordable housing agreement. The affordable housing agreement shall be
executed in a recordable form prior to the issuance of a building permit for any portion of
a housing development subject to the requirements of this chapter. The affordable
housing agreement shall be binding upon all future owners and successors in interest.
A. Review. The terms of the affordable housing agreement shall be reviewed and revised
as appropriate by the Director and City Attorney.
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B. Fees. The City may establish fees associated with the setting up and monitoring of
the affordable units.
C. Contents. The affordable housing agreement shall include at least the following:
1. Identification of Affordable Units. Affordable units shall be identified by address
and legal description, type (floor area, number of bedrooms/baths, unit size, etc.),
and designated household income category. The affordable housing agreement
shall also identify the total number of affordable units and total number of units
approved for the housing development.
2. Term of Affordability. Unless specified elsewhere in this chapter a minimum term
of fifty-five (55) years of the specified affordability shall be required. Such
reservation period shall begin on the date a certificate of occupancy is granted for
the affordable units.
3. Maximum Allowable Rent or Sales Price.
a. Rental Housing Developments. In the case of rental housing developments, the
affordable housing agreement shall provide for the following conditions
governing the use of the affordable housing units during the use restriction
period:
The rules and procedures for qualifying tenants, establishing affordable
rent, filling vacancies, and maintaining the affordable units for qualified
tenants.
ii. Provisions requiring owners to verify tenant incomes and maintain books
and records to demonstrate compliance with this chapter.
iii. Provisions requiring owners to submit an annual report to the City, which
includes the name, address and income of each person occupying each
affordable unit, and which identifies the bedroom size and monthly rent or
cost of each affordable unit.
iv. A maximum rent schedule shall be submitted to the City prior to the
issuance of an occupancy permit for the affordable units, and updated
annually on the anniversary date of occupancy.
v. Total move -in costs for eligible tenants occupying affordable units shall be
limited to first month's rent plus a security/cleaning deposit not to exceed
one month's rent.
vi. When a tenant occupying an affordable unit no longer qualifies under the
income requirements, verified through the monitoring program required as
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part of the affordable housing agreement, that tenant may then be charged
market rate rent. If this occurs, any currently vacant unit of similar type to
the affordable unit in question shall then be designated as an affordable
unit, and the owner shall immediately attempt to secure tenants in
accordance with this chapter. The owner is required to maintain at all times
during the use restriction the minimum number of affordable units identified
in the affordable housing agreement.
vii. No subletting or short-term occupancy of designated affordable units shall
be allowed.
b. Ownership Projects. In the case of for -sale housing developments, as a
condition of approval of the housing development, the City shall require an
affordable housing agreement that includes the following conditions governing
the initial sale and use of affordable units during the applicable use period:
Affordable units shall, upon initial sale, be sold to eligible very low- and low-
income households at an affordable sales price and housing cost, or to
qualifying residents in the case of a senior citizen housing development.
Affordable units shall be initially owner -occupied by eligible very low- or low-
income households, or by qualifying residents in the case of a senior citizen
housing development.
iii. The initial purchaser of each affordable housing unit shall execute an
instrument or agreement approved by the City restricting the sale of the
affordable housing unit in accordance with this chapter during the applicable
use restriction period. Such instrument or agreement shall be recorded
against the parcel containing the affordable housing unit and shall contain
such provisions as the City may require to ensure continued compliance with
this chapter and State Density Bonus Law.
iv. The affordable housing agreement shall stipulate that, when the terms of
affordability expire on an affordable unit, the City and/or a non-profit housing
organization shall have a first right of purchase option sixty (60) days prior
to the affordable unit being advertised on the market.
v. Rental of affordable units shall not be allowed.
vi. When an equity sharing agreement is required by this chapter, the affordable
housing agreement shall specify the equity sharing agreement comply with
Section 21.32.140.
4. Monitoring of Compliance to Agreement. A monitoring program shall be required,
specifying the party responsible for certifying tenant incomes and sales price,
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maintaining the required number of affordable units for the property, marketing and
filling unit vacancies.
5. Remedies. Description of remedies for breach of the affordable housing agreement
by either party (the City may identify tenants or qualified purchasers as third -party
beneficiaries under the agreement).
6. Description of Density Bonus. A description of the incentives and/or concessions,
if any, being provided by the City.
7. Schedule. A schedule for completion and occupancy of the affordable units.
8. Other Provisions. Other provisions to ensure implementation and compliance with
this chapter.
Section 3: Section 21.70.020 (Definitions of Specialized Terms and Phrases) of
Title 21 (Local Coastal Program Implementation Plan) of the NBMC is amended to include
the following definitions with all other definitions to remain unchanged:
"Density bonus" See Section 21.32.020.
"Extremely low-income household" means persons and families whose income does not
exceed thirty (30) percent of the area median income for Orange County, as published by
the California Department of Housing and Community Development, adjusted for family size
and revised annually.
"Low-income household" means persons and families whose income is greater than fifty
(50) percent but does not exceed eight (80) percent of the area median income for Orange
County, as published by the California Department of Housing and Community
Development, adjusted for family size and revised annually.
"Moderate -income household" means persons and families whose income is greater than
eighty (80) percent but does not exceed one hundred twenty (120) percent of the area
median income for Orange County, as published by the California Department of Housing
and Community Development, adjusted for family size and revised annually.
"Very low-income household" means persons and families whose income is greater than
thirty (30) percent but does not exceed fifty (50) percent of the area median income for
Orange County, as published by the California Department of Housing and Community
Development, adjusted for family size and revised annually.
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Attachment E
Coastal Zone Map
17-106
100
Legend
..........------------------
-- Local Coastal Plan Boundary
---- City Boundary
Coastal Zone Area
Coastal Zone
City of Newport Beach, California
Newport Coast Se
_ mot A Part)
�MC
Coastal_Zone_Featured_Areas.mA November/2008
0 0.225 0.45 0.9 Mlles
1 1 I
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Attachment F
CA Coastal Commission Approval Letter and
Suggested Modifications
17-108
STATE OF CALIFORNIA— NATURAL RESOURCES AGENCY GAVIN NEWSOM, GOVERNOR
CALIFORNIA COASTAL COMMISSION
South Coast Area Office
301 East Ocean Boulevard, Suite 300
Long Beach, CA 90802-4302
(562)590-5071
July 24, 2024
City of Newport Beach
Community Development Department
Attn: Jaime Murillo, Deputy Community Development Director
100 Civic Center Drive
Newport Beach, CA 92660
Re: City of Newport Beach Local Coastal Program Amendment Request No. LCP-5-NPB-22-
0056-1 (Part A) Density Bonus
Dear Council Persons:
We are pleased to notify you that on April 12, 2024, the Commission approved the Newport
Beach Local Coastal Program (LCP) Amendment No. LCP-5-NPB-22-0056-1 (Part A) with
suggested modifications. The amendment modified the Implementation Plan (IP) of the
City's Certified Local Coastal Program (LCP) to allow density bonuses associated with
housing development projects in the Coastal Zone.
The Commission approved the LCP Amendment with suggested modifications. Thus, the
Amendment will become final once: 1) the City of Newport Beach City Council adopts the
Commission's suggested modifications, 2) the City of Newport Beach City Council
forwards the adopted suggested modifications to the Commission by Resolution, and 3)
the Executive Director certifies that the City has complied with the Commission's April 12,
2024, action. The Coastal Act requires that the City's adoption of the suggested
modifications be completed within six (6) months of the Commission's action.
Pursuant to the Commission's action on April 12, 2024, certification of the City of Newport
Beach Local Coastal Program Amendment No. LCP-5-NPB-22-0056-1 (Part A) is subject
to the attached Suggested Modifications (Attachment "A").
Thank you for your cooperation and we look forward to working with you and your staff in
the future. If you have any questions, please contact me at our Long Beach office (562) 590-
5071 or at fernie.sy@coastal.ca.gov.
Sincerely,
Fernie Sy
Coastal Program Analyst
Attachment: Attachment "A" Suggested Modifications
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C0
LCP-5-NPB-22-0056-1 (Part A) Density Bonus
Attachment A: Suggested Modifications
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ATTACHMENT A: Suggested Modifications
Bold Underline/Strokeou Version of Title 21 (Local Coastal Program
Implementation Plan) Revisions
Local Coastal Program Amendment No. LC2020-004
Section 1: Subsection (C)(1) of Section 21.12.020 (Rules of Interpretation) of Chapter
21.12 (Interpretation of Implementation Plan Provisions) of Title 21 (Local Coastal
Program Implementation Plan) of the NBMC is hereby amended to read as follows:
Calculations.
Residential Density. WheR Except for projects that include a density bonus in
accordance with Section 21.32 when the number of dwelling units allowed on a
site is calculated based on the minimum site area per dwelling unit, any fraction of
a unit shall be rounded down to the next lowest whole number. For example, where
a residential zoning district requires a minimum site area per dwelling unit of one
thousand five hundred (1,500) square feet; a site of ten thousand (10,000) square
feet would be allowed six (6) dwelling units (10,000 sq. ft/1,500 sq. ft. per
dwelling unit = 6.66 dwelling units, which is rounded down to six (6) dwelling
units).
Section 2: Chapter 21.32 (Density Bonus) of Title 21 (Interpretation of Implementation
Plan Provisions) of the NBMC is hereby added to read as follows:
Changes to proposed language is shown in bold underline and stroke
Chapter 21.32
DENSITY BONUS
Sections:
21.32.010 Purpose.
21.32.020 Coastal Act Consistency
21.32.030 Densitv Bonus. Concessions. Incentives. and Waivers
21.32.040 Approval Process
21.32.020- Definitions
21.32.025—
21.32� Eligibility for Plena
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LCP-5-NPB-22-0056-1 (Part A) Density Bonus
Attachment A: Suggested Modifications
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1 1 Purpose.
The purpose of this chapter is to provide a means for ranting density bonus and
requoremeRtS of Government Code Sections 65915 et. seg. threuelh 65948, as the
•- •-• • •
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Attachment A: Suggested Modifications
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21.32.0202-5-Coastal Act Consistency.
A. California Government Code Section 69515(m) provides that density bonus law
shall not be construed to supersede or in any way alter or lessen the effect or
application of the California Coastal Act of 1976. Any density bonus,
concessions, incentives, waivers or reductions of development standards, and
parking ratios to which the applicant is entitled under California State
Government Code § Section 65915 et. seq., shall be permitted in a manner that
is consistent with that section and the California Coastal Act of 1976 (Division
20 (commencina with Section 30000) of the Public Resources Code.)
B. A requested density bonus and any requested incentive, concession, waiver,
modification, or modified parking standard shall comply with all applicable
standards and use regulations of the certified Local Coastal Program
Implementation Plan, with the exception of the development standards waived,
reduced, or modified through density bonus provisions. In no case shall the
17-113
LCP-5-NPB-22-0056-1 (Part A) Density Bonus
Attachment A: Suggested Modifications
Page 5 of 25
coastal resource protection development regulations of Sections 21.28.040
(Bluff (B) Overlay District), 21.28.050 (Canyon (C) Overlay District),
21.28.015(D) (Waterfront Development), 21.30.015(E)(2) (Development in
Shoreline Hazardous Areas) and 21.30.100 (Scenic and Visual Quality
Protection), or Chapters 21.30A (Public Access and Recreation) Chapter
21.30B (Habitat Protection) be waived, reduced, or modified.
21.32.030 Density Bonuses, Concessions, Incentives, and Waivers
Unless restricted by Section 21.32.020, eligible housing development or mixed -use
development projects may be granted density bonuses, concessions, incentives,
and waivers pursuant to California State Government Code § 65915 et. seq., which
may be amended from time to time.
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LCP-5-NPB-22-0056-1 (Part A) Density Bonus
Attachment A: Suggested Modifications
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Percentaqe
Dercen+wive of
Base
Unats
Very- ow Income
Low Income
Moderate Income
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LCP-5-NPB-22-0056-1 (Part A) Density Bonus
Attachment A: Suggested Modifications
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2�3%
54%
46-.25-ok
a 8%
24%
58 %
50 %
4-9%
2"0
58 %
59 °�
24,04
27-Ok
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2"0
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50 °�
2-"
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2"0
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LCP-5-NPB-22-0056-1 (Part A) Density Bonus
Attachment A: Suggested Modifications
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LCP-5-NPB-22-0056-1 (Part A) Density Bonus
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4"0
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4 -%
4 0
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47-%
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48-°��
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-34%
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17-119
LCP-5-NPB-22-0056-1 (Part A) Density Bonus
Attachment A: Suggested Modifications
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.r.Erz�ersr�ar_r.■e� W:.1i r MP.Ww.
MUM �t.RE 1��IRr7�AT� 11 ► .
In
17-120
LCP-5-NPB-22-0056-1 (Part A) Density Bonus
Attachment A: Suggested Modifications
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O� ..0...0..0.0
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17-121
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21.32.040430 Approval Process.
An applicant requesting a density bonus, incentive, concession, or waiver
pursuant to this chapter shall require approval of an Affordable Ho Sinn
Implementation Plan pursuant to SeGtinns 20 50 030 and ` 0 52 015 and a coastal
development permit or waiver pursuant to Chapter 21.52 (Coastal Development
Review Procedures).
17-128
LCP-5-NPB-22-0056-1 (Part A) Density Bonus
Attachment A: Suggested Modifications
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...:..�,o,... ..�.""
MOOR M-�RMWM,
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-..
17-129
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Bold Underline(hut Version of Additional Revisions to Title 21
(Local Coastal Program Implementation Plan)
Part No. 01: Footnote 7 of Table 21.18-4 shall be modified, as follows:
TABLE 21.18-4
DEVELOPMENT STANDARDS FOR MULTI -UNIT RESIDENTIAL
COASTAL ZONING DISTRICTS
Notes:
(7) Density bonuses may be granted in compliance with Chapter 21.32, Density heR uses may he
granted fer the development of hG61SORg that is affordable to lower , lew , and mederate ORGerne with all etherwise
applicable Local Coastal Program policies and development standards I
Part No. 02: Footnote 6 of Table 21.22-3 shall be modified, as follows:
TABLE 21.22-3
DEVELOPMENT STANDARDS FOR VERTICAL AND
HORIZONTAL MIXED -USE ZONING DISTRICTS
Notes:
(6) Density bonuses may be granted in compliance with Chapter 21.32. Density bonuses may he
granted for the development of housing that is affordable to lower , low , and moderate incorne
households and senior citizens in compliance with Government Code Sections 65915 through 65917. Any
housing development approved pursuant to Government Code Section 65915 shall be consistent, to the
maxornurn extent feasible, and On a manner most protective of coastal resources, with all otherwise
pliGahle I o al Geastal Dregram policies and de"elOpmer,t standards
Part No. 03: Footnote 7 of Table 21.22-4 shall be modified. as follows:
TABLE 21.22-4
DEVELOPMENT STANDARDS FOR WATERFRONT
MIXED -USE ZONING DISTRICTS
Notes:
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LCP-5-NPB-22-0056-1 (Part A) Density Bonus
Attachment A: Suggested Modifications
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(7) Density bonuses may be granted in compliance with Chapter 21.32. Density bonuses may be
granted for the development of housing that is affordable to lower , low , and moderate incorne
households and senior citizens in compliance with Government Code Sections 65915 through 65917. Any
nliGable I E) of ( eastal Dregram n.,liGies and rdeyel.,nMeRt otaR dar.do
Part No. 04: Chapter 21.70.020 shall be modified, as follows:
rIII
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Part No. 05: Chapter 21.30A.050(E) shall be modified, as follows:
E. Parking.
1. Off -Street Parking Spaces Required. Any required off-street parking spaces shall be
provided in compliance with Chapter 21.40. However, modifications to these
standards may be Dermitted Dursuant to Chaster 21.32 (Density Bonus) in
situations where reduced Darkina reauirements would not sianificantly imaact
ublic access to the shoreline.
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Attachment G
Redline Strikeout Version of Proposed
Amendment
17-135
Underline/Strflwo,ut Version of Title 21 (Local Coastal Program Implementation Plan)
Revisions
Local Coastal Program Amendment No. LC2020-004
Section 1: Subsection (C)(1) of Section 21.12.020 (Rules of Interpretation) of Chapter
21.12 (Interpretation of Implementation Plan Provisions) of Title 21 (Local Coastal Program
Implementation Plan) of the NBMC is hereby amended to read as follows:
C. Calculations.
Residential Density. Wien -Except for projects that include a density bonus in accordance
with Chapter 21.32 (Density Bonus), when the number of dwelling units allowed on a site
is calculated based on the minimum site area per dwelling unit, any fraction of a unit shall
be rounded down to the next lowest whole number. For example, where a residential
zoning district requires a minimum site area per dwelling unit of one thousand five hundred
(1,500) square feet; a site of ten thousand (10,000) square feet would be allowed six 6
dwelling units (10,000 sq. ft/1,500 sq. ft. per dwelling unit = 6.66 dwelling units, which is
rounded down to six (6) dwelling units).
Section 2: Chapter 21.32 (Density Bonus) of Title 21 (Local Coastal Program
Implementation Plan) of the NBMC is hereby added to read as follows:
Chapter 21.32
DENSITY BONUS
Sections:
21.32.010 Purpose.
21.32.020 Coastal Act Consistency.
21.32.030 Density Bonus, Concessions, Incentives, and Waivers.
21.32.040 Approval Process.
21.32.010 Purpose.
The purpose of this chapter is to provide a means for granting density bonuses and incentives
in compliance with State Density Bonus Law, Government Code Sections 65915 et seq., as
the same may be amended from time to time.
21.32.020 Coastal Act Consistency.
A. California Government Code Section 65915(m) provides that density bonus law shall not
be construed to supersede or in any way alter or lessen the effect or application of the
California Coastal Act of 1976. Any density bonus, concessions, incentives, waivers or
reductions of development standards, and parking ratios to which the applicant is entitled
under California State Government Code Section 65915 et. sea.. shall be permitted in a
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manner that is consistent with that section and the California Coastal Act of 1976 (Division
20 (commencing with Section 30000) of the Public Resources Act Code).
B. A requested density bonus and any requested incentive, concession, waiver, modification,
or modified parking standard shall comply with all applicable standards and use regulations
of the certified Local Coastal Program Implementation Plan, with the exception of the
development standards waived, reduced, or modified through density bonus provisions. In
no case shall the coastal resource protection development regulations of Sections
21.28.040 (Bluff (B) Overlay District), 21.28.050 (Canyon (C) Overlay District), 21.30.015(D)
(Waterfront Development), 21.30.015(E)(2) (Development in Shoreline Hazardous Areas)
and 21.30.100 (Scenic and Visual Quality Protection) or Chapters 21.30A (Public Access
and Recreation) and Chapter 21.30B (Habitat Protection) be waived, reduced, or modified.
21.32.030 Density Bonuses, Concessions, Incentives, and Waivers
Unless restricted by Section 21.32.020 (Coastal Act Consistency), eligible housing
development or mixed -use development projects may be granted density bonuses,
concessions, incentives, and waivers pursuant to California State Government Code Section
65915 et. seq., which may be amended from time to time.
21.32.040 Approval Process.
An applicant requesting a density bonus, incentive, concession, or waiver pursuant to this
chapter shall require approval of a coastal development permit or waiver pursuant to Chapter
21.52 (Coastal Development Review Procedures).
Section 3: The definition of "density bonus" in Section 21.70.020 (Definitions of
Specialized Terms and Phrases) of Title 21 (Local Coastal Program Implementation Plan) of the
NBMC is amended as follows:
'� •'III Mi'� • r • �•
application.
Section 4: The definitions of "affordable housing agreement," "low-income household,"
"moderate -income household," and "very low-income household" in Section 21.70.020
(Definitions of Specialized Terms and Phrases) of Title 21 (Local Coastal Program
Implementation Plan) are deleted in their entirety.
_ r
Ilr
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11. _
_
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im
•
_
01 Win -I
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-
11 \ .. ■ -
•
1 11.
■ - ■ -
Section 5: Footnote 7 of Table 21.18-4 of Section 21.18.030 (Residential Coastal Zoning
Districts General Development Standards) of Title 21 (Local Coastal Program Implementation
Plan) of the NBMC is amended as follows:
.. . .. .. . . . .
Sections 6: Footnote 6 of Table 21.22-3 of Section 21.22.030 (Mixed -Use Coastal Zoning
Districts General Development Standards) of Title 21 (Local Coastal Program Implementation
Plan) of the NBMC is amended as follows:
Sections 7: Footnote 7 of Table 21.22-4 of Section 21.22.030 (Mixed -Use Coastal Zoning
Districts General Development Standards) of Title 21 (Local Coastal Program Implementation
Plan) of the NBMC is amended as follows:
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NII
•. _ •.
Section 8: Subsection (E)(1) of Section 21.30A.050 (Development Standards) of Chapter
21.30A (Public Access and Recreation) of Title 21 (Local Coastal Program Implementation Plan)
of the NBMC is hereby amended to read as follows:
E. Parking
1. Off -Street Parking Spaces Required. Any required off-street parking spaces shall be provided
in compliance with Chapter 21.40 (Off -Street Parking). However, modifications to these
standards may be permitted pursuant to Chapter 21.32 (Density Bonus) in situations where
reduced parking requirements would not significantly impact public access to the shoreline.
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Attachment H
Summary of Density Bonus Law
Legislation
17-140
Density Bonus Law Legislation Effective 2023 and 2024
AB 233L (Base Density and Projects in Very Low Vehicle Travel Areas). The bill
updated the definition of maximum allowable residential density for the purpose of
determining the "base density" to which bonus density may be added. The clarification
on determining base density was due in part to the manner in which some cities
calculate density. Most cities, like Newport Beach, calculate maximum density based
on number of dwelling units per acre. Some cities base their calculation on floor area
ratio, site coverage and/or height limits. The law allows an applicant to provide a base
density study in those jurisdictions that do not use density based on units per acre. The
law also specifies that if there is inconsistency with the allowable density between the
zoning ordinance and the general plan or a specific plan, the greater density is to
prevail.
Under existing law, for projects where 100% of all units are for lower income
households, local jurisdictions are required to award to an applicant under the Density
Bonus Law a height increase of up to three additional stories, or 33 feet if the project is
located within '/z mile of a major transit stop. The bill now affords the additional height
allowance to projects that are also located in a very low vehicle travel area defined as
an urbanized area where the existing residential development generates Vehicle Miles
Traveled (VMT) per capita below 85% of regional or city VMT per capita.
The law makes other changes to facilitate affordable housing financing by aligning
maximum rent levels as determined by the California Tax Credit Allocation Committee
and provides that as part of an equity -sharing agreement a local government may defer
to the recapture provisions of a public funding source.
Finally, the law changes the resident age requirement for a specified development to
receive an elimination of parking minimums from the current 62 years of age or older
to instead be 55 vears or older.
AB 1551 (Benefits for Mixed -Use Projects). This bill simply extended the expiration
date of an existing law from 2022 to 2028. The law relates to the granting of density
bonus for a commercial development if the developer enters into an agreement to
provide affordable housing.
AB 682 (Shared Housing Projects). This bill establishes "shared housing" as a new
category of housing eligible for a density bonus and other benefits of the Density Bonus
Law. "Shared housing" is defined in the legislation as a residential or mixed -use
structure containing five or more private units which share common areas such as a
kitchen or dining area. The separate units within the shared housing development are
treated the same as traditional self-contained housing units for purposes of density
bonus law.
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AB 1287 (Additional Density Bonuses for Very -Low or Moderate Income Units).
This bill allows a project to receive additional density bonus if it maximizes the
production of very low-, low- or moderate -income unit as allowed by the current State
Density Bonus Law. If a project meets the maximum levels, additional bonuses can be
stacked on top of the prior maximum bonus. As an example, a 50% density bonus is
granted if a project restricts 15% of the base units to very low-income households. An
additional 50% density bonus is granted if a project also restricts 15% of the base units
to moderate -income households, resulting in a 100% total density bonus (50% for the
very low-income units and 50% for the moderate- income units). The bill also increased
the allowable incentives or concessions for 100% affordable projects located within '/2
mile of a major transit stop or within a low vehicle travel area from four to five.
SIB 713 (Development Standard Definition Adjustment). This bill amends the
definition of "development standard" to include regulations adopted by a local
government or enacted by the local government's electorate.
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