§ 20.2.85. Residential density bonus and development incentives.

1.

Purpose and intent. The specific purposes of the affordable housing density bonus and other incentives regulations are to:

a.

Allow for density bonuses and additional incentives, consistent with Government Code Section 65915, for the production of affordable housing for lower and moderate income households, for seniors and disabled persons, and for development that includes a childcare facility;

b.

Implement the policies of the general plan housing element to expand the provision of housing for lower and moderate income households, elderly residents and others with special housing needs; and

c.

Establish requirements for resale and rental controls to ensure that units remain affordable for at least thirty years or such other term as required by the City, consistent with State law.

2.

General provisions.

a.

State Law Governs: The provisions of this article shall be governed by the requirements of Government Code Section 65915, as amended. Where conflict occurs between the provisions of this article and state law, the state law shall govern.

b.

Land Use Compatibility: All affordable housing units shall be dispersed within market rate projects, whenever feasible. Affordable housing units within market rate projects shall be comparable with the design of market rate units in appearance, use of materials, and finished quality. Building forms, materials and proportions that are compatible with the character of the surroundings shall be used.

c.

Availability: Affordable housing units shall be constructed concurrently with, and made available for qualified occupants at the same time as the market rate housing units within the same project unless both the City and the developer agree to an alternative schedule for development.

d.

Effect of Granting Density Bonus: The granting of a density bonus shall not, in and of itself, require a general plan amendment, zoning change, or other discretionary approval.

e.

Income Levels: For purposes of determining income levels of households under this article, the City shall use the Kern County income limits in title 25, Section 6932 of the California Code of Regulations or other income limits adopted by the City council if the state department of housing and community development fails to provide timely updates of the income limits in the California Code of Regulations.

3.

Application requirements. An application for a density bonus, incentive, concession, waiver, modification, or revised parking standard pursuant to this article shall be submitted in conjunction with the project application and shall be processed concurrently with all other applications that may be required for the project. The application shall be submitted on a form provided by the City and shall include, at a minimum, the following information:

a.

Site plan showing the total number of units, the number and location of the units dedicated pursuant to California Government Code Section 65915(b), and the number and location of the proposed density bonus units;

b.

The level of affordability of the dedicated units;

c.

A description of any requested incentives, concessions, waivers or modifications of development standards, or modified parking standards and evidence demonstrating that the application of the subject standard or requirement would preclude construction of the project at the densities provided for in California Government Code Section 65915 and that the waiver or modification is necessary to make development of the project financially feasible at the densities provided for in California Government Code Section 65915;

d.

If a density bonus is requested for a land donation pursuant to California Government Code Section 65915(g), the application shall show the location of the land to be dedicated and provide evidence that the requirements of Section 65915(g) have been met, thus entitling the project to the requested density bonus; and

e.

If a density bonus is requested for construction of a childcare facility pursuant to California Government Code Section 65915(h), the application shall show the location and square footage of the proposed facility and provide evidence that the requirements of Section 65915(h) have been met, thus entitling the project to the requested density bonus.

4.

Application review procedure.

a.

Upon receipt of a complete application as outlined in Section 20.2.85.3 above, the request for a density bonus and/or development concession(s) shall be processed in conjunction with the appropriate project application(s). Upon acceptance of a complete application and a determination of project consistency with the California Environmental Quality Act (CEQA), the request shall be forwarded to the City of Delano Planning Commission to be considered at a noticed public hearing held in accordance with Section 20.2.140 of the Delano Municipal Code.

b.

Following the public hearing held pursuant to Section 20.2.85.4.a. above, the Planning Commission shall adopt a resolution recommending to the City of Delano City Council approval, approval with conditions or denial the related application based on written findings, or the Planning Commission may continue such hearing in order to receive additional information prior to making a recommendation on the application.

c.

Upon receipt of a recommendation from the Planning Commission on an application involving a request for a density bonus and/or development concession(s), the City Clerk shall schedule the matter for a noticed public hearing held in accordance with Section 20.2.140 of the Delano Municipal Code on the next available City Council agenda. The City Council shall approve, approve with conditions or deny the application based on written findings, or the City Council may continue such hearing in order to receive additional information prior to making a decision on the application. The decision of the City Council on the related application shall be final.

5.

Affordable housing density bonus.

a.

Minimum Density Bonus and Composition of Qualifying Projects: Pursuant to Government Code Section 65915, the City shall grant a density bonus in the following amounts over the otherwise allowable maximum residential density permitted by this chapter and the general plan, and one or more additional concessions or incentives, consistent with Government Code Section 65915 and this Section, if the applicant applies for and proposes to construct any one of the following:

(1)

Lower Income Units: A density bonus of twenty percent if ten percent of the total units of a housing development are affordable to lower income households, as defined in Section 50079.5 of the Health and Safety Code.

(2)

Very Low Income Units: A density bonus of twenty percent if five percent of the total units of a housing development are affordable to very low income households, as defined in Section 50105 of the Health and Safety Code.

(3)

Senior Citizen Housing Development: A density bonus of twenty percent if a housing development qualifies as a senior citizen housing development, as defined in Section 51.3 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.

(4)

Moderate Income Units In Condominium and Planned Use Developments: A density bonus of five percent if ten percent of the total dwelling units in a condominium project, as defined in subdivision (f) of, or in a planned development, as defined in subdivision (k) of Section 1351 of the Civil Code, are affordable to persons and families of moderate income, as defined in Section 50093 of the Health and Safety Code.

b.

Additional Sliding Scale Density Bonus: As provided for in Government Code Section 65915(g) the number of units to which the applicant is entitled may exceed the percentage specified in Subsection a. of this section under the following provisions:

(1)

Lower Income Dwellings: For each additional one percent increase above ten percent units affordable to lower income households, the density bonus shall be increased by one and one-half percent up to a maximum density bonus of thirty-five percent of the maximum allowable residential density for the site.

(2)

Very Low Income Dwellings: For each additional one percent increase above five percent in the proportion of units affordable to very low income households, the density bonus shall be increased by two and one-half percent, up to a maximum of thirty-five percent of the maximum allowable residential density for the site.

(3)

Condominium and Planned Development Units: For each additional one percent increase above ten percent units affordable to moderate income households, the density bonus shall be increased by one percent, up to a maximum of thirty-five percent of the maximum allowable residential density for the site.

(4)

Ten percent of the total dwelling units in a common interest development as defined in Section 1351 of the Civil Code for 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.

c.

Qualifying Projects; Number of Units: The bonuses under Subsections a. and b. of this section are applicable to residential projects of five or more units, and senior housing projects of more than thirty-five units.

d.

Calculation of Density Bonus Units: When calculating the number of permitted density bonus units, all fractional units shall be rounded to the next higher whole number. The applicant who requests a density bonus for a project that meets two or more of the eligibility requirements shall specify whether the bonus shall be awarded on the basis of Subsections a.(1), a.(2), a.(3), or a.(4) of this Section. The density bonus shall not be included when determining the number of target units to be provided in a development project.

e.

Optional Density Bonus: The City may grant a proportionally lower density bonus and/or provide concessions and/or incentives set forth in Section 20.2.85(5)(a) "Affordable Housing Density Bonus", of this article, if an applicant agrees to construct a development containing less than the percentage of housing for lower or very low income households than provided in Subsection a. of this section.

6.

Affordable housing concessions and incentives.

a.

Number of Incentives or Concessions: Pursuant to Government Code Section 65915, an applicant is entitled to receive incentives and/or concessions as follows:

(1)

One incentive or concession for projects that include at least ten percent of the total units for lower income households, at least five percent for very low income households, or at least ten percent for persons and families of moderate income in a condominium or planned development; or

(2)

One incentive or concession for senior citizen housing developments; or

(3)

Two incentives or concessions for projects that include at least twenty percent of the total units for lower income households, at least ten percent for very low income households, or at least twenty percent for persons and families of moderate income in a condominium or planned development; or

(4)

Three incentives or concessions for projects that include at least thirty percent of the total units for lower income households, at least fifteen percent for very low income households, or at least thirty percent for persons and families of moderate income in a condominium or planned development.

(5)

The applicant who requests incentives or concessions for a mixed income project shall specify whether the incentives or concessions shall be awarded on the basis of Subsections a.(1), a.(2), a.(3), or a.(4) of this section.

b.

Proposal of Incentives and Findings: An applicant may propose specific incentives or concessions that would contribute significantly to the economic feasibility of providing affordable units pursuant to this article and state law. In addition to any increase in density to which an applicant is entitled, the City shall grant one or more incentives and/or concessions that an applicant requests, up to the maximum number of incentives and concessions required pursuant to Subsection a. of this section, unless the City makes a written finding that either:

(1)

The concession or incentive is not necessary in order to provide the proposed targeted units; or

(2)

The concession or incentive would have a specific adverse impact that cannot be feasibly mitigated on public health and safety or the physical environment or any property that is listed in the California Register of Historical Resources.

(3)

Notwithstanding the restriction in Subsection a.(5) of this section, the applicant may propose and the City may approve additional incentives and concessions for an eligible project that provides targeted units that meet two or more of the eligibility requirements based on a written finding that the additional incentives or concessions are necessary in order to make the project economically feasible.

c.

Types of Affordable Housing Incentives: Affordable housing incentives may consist of any combination of the items listed below:

(1)

Modification of Development Standards: Up to twenty percent in modification of site development standards or zoning code requirements that exceed minimum building code standards and fire code standards, including, but not limited to:

(a)

Reduced minimum lot sizes and/or dimensions.

(b)

Reduced minimum building setbacks and building separation requirements.

(c)

Reduced minimum outdoor and/or private usable open space requirements.

(d)

Increased maximum lot coverage.

(e)

Increased maximum building height.

(2)

Parking: Upon the applicant's request, the following maximum parking standards, inclusive of handicapped and guest parking, shall apply to the entire project. Further reductions in required parking may be requested as one of the incentives allowed under Subsection a. of this section:

(a)

One on-site space for studios to one bedroom units;

(b)

Two on-site spaces for two to three bedroom units; and

(c)

Two and one-half on-site spaces for four or more bedroom units.

(d)

For purposes of this section, at the applicant's request, on-site parking may be provided through tandem parking or uncovered parking but not through on-street parking.

(3)

Mixed Use Zoning: 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 such uses are compatible with the housing project and the surrounding area.

(4)

Other Incentives: Other regulatory incentives or concessions proposed by the developer or the City that result in identifiable cost reductions or avoidance.

7.

State childcare facility density bonus.

a.

Basic Requirements: When an applicant proposes to construct a housing development that conforms to the requirements of the state density bonus law and includes a childcare facility other than a family daycare home that will be located on the premises of, as part of, or adjacent to, the project, the City shall grant either of the following:

(1)

Additional Density Bonus: A density bonus of additional residential units equal in square footage to the amount of square feet of the childcare facility. The total density bonus including that granted pursuant to Section 20.2.85.5 of this Ordinance shall not exceed thirty-five percent of the otherwise permitted units within the development.

(2)

Additional Concession or Incentive: An additional concession or incentive that contributes significantly to the economic feasibility of the construction of the childcare facility.

b.

Conditions of Approval: The City shall require, as a condition of approving the housing development, that the following occur:

(1)

Length of Operation: The childcare facility remains in operation for a period of time that is as long as, or longer than the length of time during which the affordable housing units shall remain affordable.

(2)

Attending Children: The percentage of children of very low, low or moderate income households who attend the childcare facility shall be the same or greater than the percentage of dwelling units in the project that are required for households at each income level.

c.

Exceptions: The City shall not be required to provide a density bonus or concession for a childcare facility if it finds that, based upon substantial evidence, the community has adequate childcare facilities.

8.

Land donation. When an applicant for a residential development approval donates land to the City, the applicant shall be entitled to an additional increase in density over that granted pursuant to Section 20.2.85.5.a., in accordance with the provisions and subject to the requirements of Section 65915(g) of California Government Code.

9.

Condominium conversions.

a.

When an applicant for approval to convert apartments to a condominium project agrees to provide at least thirty-three 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 fifteen 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 the City pursuant to this section, the City shall either: (1) grant a density bonus; or (2) provide other incentives of equivalent financial value. The City 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. The granting of such density bonus and/or other incentives shall be in accordance with the provisions and subject to the requirements of Section 65915.5 of the California Government Code.

b.

For purposes of this section, "density bonus" means an increase in units of twenty-five 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 the City to provide cash transfer payments or other monetary compensation but may include the reduction or waiver of requirements which the City might otherwise apply as conditions of conversion approval.

d.

An applicant for approval to convert apartments to a condominium project may submit to the City a preliminary proposal pursuant to this section prior to the submittal of any formal requests for subdivision map approvals. The City shall, within ninety 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 shall establish procedures for carrying out this section, which shall include City Council approval of the means of compliance with this section.

e.

Nothing in this section shall be construed to require the City 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 of the Government Code.

10.

Continued affordability restrictions.

a.

Duration of Affordability: All affordable housing units shall be kept affordable for a minimum period of thirty years or such other term approved by the City, consistent with state law.

b.

Regulatory Agreement Required: All affordable housing projects shall be subject to the approval of an agreement pursuant to conforming to the provisions of Sections 65864 to 65869 of the Government Code. The terms of the agreement shall be reviewed and revised as appropriate by the City Attorney, who shall formulate a recommendation to the decision making body for final approval. This agreement shall include, but is not limited to the following:

(1)

Number of Units: The total number of units approved for the projects, including the number of affordable housing units.

(2)

Target Units: The location, unit sizes (in square feet) and number of bedrooms of the affordable housing units.

(3)

Household Income Group: A description of the household income groups to be accommodated by the project and a calculation of the affordable sales price.

(4)

Certification Procedures: The party responsible for certifying sales prices or annual rental rates, and the process that will be used for certification.

(5)

Schedule: A schedule for the completion and occupancy of the affordable housing units.

(6)

Required Term of Affordability: Duration of affordability of the housing units. Provisions shall also cover resale control and deed restrictions on targeted housing units that are binding on property upon sale or transfer.

(7)

Expiration of Agreement: Provisions covering the expiration of the agreement, including notice prior to conversion to market rate units and right of first refusal option for the City and/or the distribution of accrued equity for for-sale units.

(8)

Remedies for Breach: A description of the remedies for breach of the agreement by either party.

(9)

Other Provisions: Other provisions to ensure implementation and compliance with this article.

(10)

Condominium and Planned Developments: In the case of condominium and planned developments, the regulatory agreement shall provide for the following conditions governing the initial resale and use of affordable housing units:

(a)

Target units shall, upon initial sale, be sold to eligible very low, lower, or moderate income households at an affordable sales price and housing cost, or to qualified residents as defined by this chapter.

(b)

Target units shall be initially owner occupied by eligible very low or lower income households.

(c)

Upon resale, the seller of a target unit shall retain the value of any improvements, the down payment, and the seller's proportionate share of appreciation. The City shall recapture its proportionate share of appreciation, which shall be used to promote home ownership opportunities as provided for in Health and Safety Code Section 33334.2. The City's proportionate share shall be equal to the percentage by which the initial sale price to the targeted household was less than the fair market value of the dwelling unit at the time of initial sale.

(11)

Rental Housing Developments: In the case of rental housing developments, the regulatory agreement shall provide for the following conditions governing the use of target units during the use restriction period:

(a)

The rules and procedures for qualifying tenants, establishing affordable rent rates, filling vacancies, and maintaining target units for qualified tenants.

(b)

Provisions requiring owners to verify tenant incomes and maintain books and records to demonstrate compliance with this article.

(c)

Provisions requiring owners to submit an annual report to the City, which includes the name, address, and income of each person occupying target units, and which identifies the bedroom size and monthly rent or cost of each target unit.

(Ord. No. 2012-1243, § 1(Exh. A), 2-6-2012)