State Density Bonus Law Codification for TC revisedState Density Bonus Law Codification Zoning Code Amendment A-12-001
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State Density Bonus Law Brief History
First Passed in 1979
Significantly amended in 2004 by SB 1818
Mandates local agencies adopt ordinances to implement Density Bonus Law
Cities and Counties must comply with State Law
and cannot create more restrictive ordinances
Overall Purpose:
Encourage developers to build affordable housing
Good evening Mayor Rick and Council Members: I have an brief presentation and then we will have plenty of time for questions and answers. This evening staff will be presenting a brief
overview of the Town’s proposed codification of the State Density Bonus Law. As you may remember last year, the Town processed its first and only State density bonus application, which
Riviera Terrance Planned Development.
I will briefly cover the history of the law, the required provisions, including: applicability how the bonus works, incentives and concessions,
waivers of development standards, maximum parking ratios, and staff and Planning Commission recommended additions to the Town’s Program.
The State Density Bonus law was first Passed
in 1979
It was significantly amended in 2004 by Senate Bill 1818
The law Mandates that local agencies must adopt ordinances to implement Density Bonus Law
Cities and Counties must
comply with State Law and most importantly they cannot create more restrictive ordinances
The Overall Purpose is to encourage developers to build affordable housing in California.
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Provisions
Applies to housing developments with 5 or more units
Five components:
Density bonus for housing that meets prescribed affordability levels
Incentives or concessions
Waiver of development
standards
Imposition of maximum parking standards
Bonuses for land donation or child care facilities
The State Density Bonus law applies to housing developments with 5 or more units. It is important to note that an applicant must request the state density bonus law provisions in order
to receive the benefits.
There are Five major components to the law. It provides for
A Density bonus for housing that meets prescribed affordability levels
Incentives or concessions
Waiver
of development standards or conditions
Imposition of maximum parking standards, and
Bonuses for land donation or child care facilities
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Applicability
Triggers when developer sets aside:
5% affordable to very low income households
10% affordable to low income households
10% in a for sale condominium or planned development projects
affordable to moderate income
20% density bonus for a minimum 35 units dedicated for senior housing
15% for land donation, and
Density bonus or incentive for affordable projects that
incorporate a child care facility
The Density Bonus is Triggered when a developer sets aside:
5% of the total units affordable to very low income households
10% of the total units affordable to low income households,
or
10% of the total units in a for sale condominium or planned development projects affordable to moderate income.
The law also includes provisions for:
A 20% density bonus for a minimum
35 units dedicated for senior housing
15% density bonus for land donation that meets specified requirements, and
A density bonus or incentive for affordable projects that incorporate
a child care facility
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Density Bonus
Reaches a Maximum 35% density bonus when:
11% of very low income units
20% of low income units
40% of moderate (for-sale) units
Senior is limited to a 20% maximum density bonus
The amount of the density bonus is based on a sliding scale that corresponds to the number of affordable units. These bonus reach a maximum of 35% when a project provides either:
11%
of very low income units;
20% of low income units; or
40% of moderate (for-sale) units
Senior is limited to a 20% maximum density bonus
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Incentives/Concessions
Qualifying projects entitled to 1 to 3 incentives or concessions
Incentive or concession is:
Reduction in site standards, such as dimensional standards, architectural standards, parking
standards, and mixed use approvals
Must “result in identifiable, financially sufficient, and actual cost reductions”
Required to approve the concession or incentives unless specified
findings can be made
For qualifying projects, the developer is entitled to one to three incentive or concession in addition to the density bonus. The number of incentives and concessions increase to a maximum
of three as the developer increases the percentage of affordable units.
A concession or incentive includes a reduction in dimensional standards such as setbacks, open space, height,
etc.; architectural standards; parking standards and mixed use approvals.
The law requires any incentive to “result in an identifiable, financially sufficient, and actual cost reduction.”
The local agency is required to grant the concession or incentive requested by the applicant unless it makes a written finding, based upon substantial evidence that:
The concession
or incentive is not required in order to provide for affordable housing costs.
The concession or incentive would have a specific adverse impact upon public health and safety or the physical
environment for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact
The concession or incentive would be contrary to State or Federal law.
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Waiver of Development Standards
Law states:
Cannot impose a development standard or condition that would make the qualified project infeasible
Law authorizes:
Applicants to seek waivers by demonstrating the waiver
is needed to make the project economically feasible
No limitation on the amount of waivers
Required to grant, unless local government makes the findings:
The concession is not required
in order to provide affordable housing;
Concession would have a specific adverse impact; or
Concession is contrary to State or Federal law
The Law also states that:
A local agency cannot impose a development standard or condition that would make the qualified project infeasible
The Law authorizes:
The Applicants to seek
waivers by demonstrating the waiver is needed to make the project economically feasible
There is no limitation on the amount of waivers
And again, the local agency is required to grant
the waiver, unless it makes the same findings I mentioned on the last slide.
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Maximum Parking Ratios
Cannot impose parking standards greater than:
1 bedroom = 1 space
2 – 3 bedroom = 2 spaces
4 or more bedrooms = 2.5 spaces
Parking can be tandem or uncovered, but not on-street
The law also establishes parking standards that the local agency is obligated to approve if requested. The standards are:
1 bedroom = 1 space
2 – 3 bedroom = 2 spaces
4 or more bedrooms
= 2.5 spaces
Parking can be tandem or uncovered, but not on-street
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Recommended Additions to the Program
Expanded the applicability to include handicap populations
Application requirements, in particular a pro-forma that demonstrates that the requested concession, incentive or waiver will
result in actual cost reductions
Review process, which includes required findings
Density Bonus Housing Agreement
Design, Distribution and Timing criteria
Processing and monitoring
fees
Codified the Council’s directive that the Town’s Density Bonus General Plan policy cannot be applied to a project that also has these density bonus provisions
As noted, the Town does not have discretion with implementing the State law; however, the Town has the ability to add clarifying language or requirements, applying the bonus program
to broader range of qualifying projects, and detailing application requirements and processes in the ordinance. Based on the overriding goal of providing more clarity and ensuring that
the Town has sufficient information to evaluate the requested density bonus, concessions and waivers, staff is recommending:
Expanded the applicability to include handicap populations,
which has a definition in Sections I on Page 2 and is listed as an eligible use in Section II.A. on page 3
Application requirements, in particular a pro-forma that demonstrates that
the requested concession, incentive or waiver will result in actual cost reductions. These submittal requirements are contained in Section IV, page 12
Review process, which includes
required findings. These are contained in Section IV.B, page 13
Density Bonus Housing Agreement, which is contained in Section V on page 14
Design, Distribution and Timing criteria,
which is contained in Section III.G. on page 14, and
Processing and monitoring fees, which is contained in Section IV.D on page 14
Finally, the Guidelines codified the Council’s directive
that the Town’s Density Bonus General Plan policy cannot be applied to a project that also requesting the state density bonus provision. This is contained in the Purpose, Authority and
Definitions Section (I.C) on page 1
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Planning Commission and Other Recommended Changes
Clarify that the eligibility criteria used for senior housing also apply to handicap housing
Added “that could not otherwise be provided.” to better clarify the intent of the pro-forma
submittal criteria.
Clarified the Planning Commission would review density bonus requests prior to Council consideration, and
Disallow the density increase from the BMP Program to apply
to State Density Bonus applications
Change all references from “Senior Citizen” to “Senior”
The Planning Commission reviewed the draft ordinance, resolution and guidelines at their May 23, 2012, meeting. The Planning Commission recommended approval of the ordinance, resolution
and implementing guidelines subject to the following changes:
Required that handicap population housing uses the same eligibility criteria as senior housing, which is a 20% density
bonus on the total number of units without the density bonus. A handicap development requires a minimum of 35 units of handicap housing to be eligible.
In section IV.A.5 (Page 13),
added the statement “that could not otherwise be provided” to better clarify the intent of the pro-forma submittal criteria.
In section IV.B. (Page 14), Review Procedures, the Planning
Commission felt the way the section was worded it could be used to circumvent Planning Commission’s review of applications with density bonus requests. Staff noted that this was not
the intent and therefore the revisions clarify that the Planning Commission and or the Director of Community Development may refer an application to the Town Council for final consideration
following the Planning Commission review of the application.
The Planning Commission recommended that projects that request a density bonus should not have the ability to further increase
the density on the project through the Town’s Below Market Price (BMP) Program. After consultation with the Town Attorney, a new section, I.C.2 (Page 1) has been added to the Guidelines
that prevents an applicant who requests the state density bonus to also received increased density through the Town’s BMP Program.
Finally, it was requested to use the term “senior”
rather than senior citizen in the context of senior housing.
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Summary and Recommendations
Town is obligated to implement the State Density Bonus law
Meets State law, while providing clarity on process, application requirements, findings, and continued monitoring
Recommended
changes are incorporated into Attachment B, Exhibit A
Staff recommends the actions contained on Page 1 of the staff report, which will result in approving the ordinance, resolution and
implementing guidelines
As noted at the beginning of this presentation, the Town is obligated to implement the State Density Bonus law. The Town could do so without adopting the ordinance, resolution and guidelines.
However, this would not allow the Town the added benefit of customizing the process, application requirements, findings, and continued monitoring requirements. Moreover, the State
law is very complicated, confusing and could fairly easily be misinterpreted. Consequently, the proposed guidelines provide a clear roadmap for applicants, Town staff and decision makers.
The Planning Commission recommended changes are incorporated into Attachment B, Exhibit A
Based on the aforementioned, Staff recommends the actions contained on Page 1 of the staff
report, which will result in approving the ordinance, resolution and implementing guidelines and adopting the findings that the zoning code amendments are consistent with the General
Plan.
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