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Zoning Code Amendment A-12-001�pW N 0 m ° 5 COUNCIL AGENDA REPORT �s GAO DATE: June 12, 2012 MEETING DATE: 06/18/12 ITEM NO: .5 TO: MAYOR AND TOWN COUNCIL FROM: GREG LARSON, TOWN MANAGER /0 SUBJECT: ZONING CODE AMENDMENT A -12 -001. APPLICANT: TOWN OF LOS GATOS ADOPT AN ORDINANCE AMENDING THE ZONING CODE TO ADD DIVISION 8 TO CHAPTER 29, ARTICLE 1 ENTITLED "DENSITY BONUS." RECOMMENDATION Adopt Zoning Ordinance Amendment A -12 -001 to incorporate the State's Density Bonus Law (Attachment 1). DISCUSSION On June 4, 2012, the Town Council voted to approve Zoning Code Amendment A -12 -001, and introduced the ordinance to incorporate the State's Density Bonus Program. The Council approved the ordinance without modification. Adoption of the ordinance (Attachment 1) would finalize that decision. ATTACHMENT 1, Zoning Ordinance Amendment WRR: SLB : ct t endie Y PREPARED BY : R. Rooney, Director of Community Development Reviewed by: s Assistant Town Manager (�_ Town Attorney Finance N: \DEV \TC REP0RTS\2012 \DensityBonus [A -12 -001] 6- 18- 12.adopt.doc Refonnatted: 5/30/02 " A This Page Intentionally Left Plank ORDINANCE ORDINANCE OF THE TOWN OF LOS GATOS ADDING A NEW DIVISION 8 TO CHAPTER 29, ARTICLE I OF THE LOS GATOS TOWN CODE ENTITLED "DENSITY BONUS (STATE MANDATED)" WHEREAS, pursuant to California Government Code Section 65915, the Town is required to adopt a density bonus ordinance that applies to housing developments that provide a specified percentage of housing dedicated to and affordable to very low income, low income, senior housing, and moderate income housing; and WHEREAS, the Density Bonus Program provides incentives and concessions for affordable housing projects to meet State mandated housing goals; and WHEREAS, the Town of Los Gatos Density Bonus Ordinance will meet the requirements under State law. THE TOWN COUNCIL OF THE TOWN OF LOS GATOS DOES ORDAIN AS FOLLOWS: SECTION I Chapter 29, Article I, Division 8, entitled "Density Bonus (State Mandated)" is hereby added to the Los Gatos Town Code, and shall read as follows: �WU�.VWMAMI ARTICLE I. In General Division 8. State Mandated Density Bonus 29.10.405 Intent and Authority. The density bonus ordinance in this chapter is intended to comply with the State Density Bonus Law codified in California Government Code Section 65915 et seq., which provides that a local government shall grant a density bonus and an additional concession, or financially equivalent incentive(s), to a qualified. housing development agreeing to construct a specific percentage of housing for lower income households, very low income households, or senior housing as defined by state law. ATTACMENT 1 29.10.410 Applicability of Regulations. (a) In addition to providing a density bonus and additional concession or equivalent incentives to a qualified housing development for lower income and very low income households or senior housing, it is the intent to apply the state law density bonus to qualified physically handicapped persons. The term "physically handicapped" shall be defined pursuant to California Health and Safety Code Section 50070 and the Density Bonus Program Guidelines initially adopted by Town Council in 2012 and amended from time to time thereafter. (b) Applicant who elects to proceed with a housing development using the state law density bonus shall not be eligible for any density increases under the Town's General Plan Density Bonus Policy or the General Plan Below Market Price (BMP) Program as set forth in the Town's Housing Element portion of the General Plan. 29.10.415 General Requirements. Applicants who voluntarily agree to develop a housing development project that complies with the affordability requirements referenced in Government Code 65915 et seq. shall conform to the Density Bonus Program Guidelines adopted by Town Council (initial adopted in 2012) and as may be amended from time to time. 29.10.420 Grounds for Denial of a Project. (a) Nothing in Division 8 of this Chapter 29 limits the Town's right to deny an affordable housing project electing to proceed under the state law density bonus provisions, if the Council makes written findings, based on substantial evidence, any of the following: 1. The Town has adopted a Housing Element as part of the General Plan, and the Town has met or exceeded its share of the regional housing needs for the income category proposed for the development project; 2. The project as proposed would have a specific, adverse impact upon the public health or safety which cannot be satisfactorily mitigated without rendering it unaffordable to lower- income households; 3. The denial of the project or imposition of conditions is required in order to comply with State or Federal law and there is no feasible method to comply without rendering the development unaffordable to lower- income households; 4. The development project is proposed on land zoned for agriculture or resource preservation which is surrounded on at least two sides by land being used for agricultural or resource preservation purposes, and which does not have adequate water or wastewater facilities to serve the project. 5. The development project is inconsistent with the Town's General Plan land use designation as it existed on the date the application was deemed complete, and the Town has adopted a housing element pursuant to state law. (b) Nothing in this chapter limits the Town's right to deny a senior housing project if the Town finds, based on substantial evidence, that the project would have a specific, adverse impact upon the public health or safety; and there is no feasible method to satisfactorily mitigate or avoid the adverse impact identified. 29.10.425 Mousing Agreement Applicant requesting a state law density bonus on any rental or for sale project shall agree to enter into a density bonus housing agreement with the Town as required under the Density Bonus Program Guidelines. This housing agreement shall be made a condition of the planning permits for all residential developments pursuant to this Division and shall be recorded as a restriction on any parcels on which the density bonus units will be constructed. 29.10.430 Requirements to Maintain the Affordable Units. (a) All affordable units shall be occupied by the household type specified in the written housing agreement required under this Division. The applicant's obligation to maintain these units as affordable housing shall be evidenced by the housing agreement which shall be recorded as a deed restriction running with the land. (b) The Town may establish fees associated with the setting up and monitoring of affordable units. (c) The owner shall submit an annual report to the Town, on a form provided by the Town. The report shall include for each affordable unit the rent, income, and family size of the household occupying the unit. (d) The owner shall provide to the Town any additional information required by the Town to insure the long -term affordability of the affordable units by eligible households. 29.10.435 Administrative Fee. An administrative fee shall be charged to the applicant for the review of all materials submitted in accordance with this Division and for future monitoring of the affordability of the project. The fee amount shall be established and will be included in the Town's Master Fee Schedule. Fees will be charged for staff and consultant time associated with the development review process, project marketing and leasing, and compliance with the affordability requirements of the project. 29.10.440 Appeals. Any person aggrieved by the denial, conditioning, suspension, or revocation of a density bonus housing development in compliance with the provisions of this Division may appeal such action or determination to the Council in compliance with Chapter 29, Article II (Administration and Enforcement) of the Town Code. SECTION II In the event that any part of this ordinance is held to be invalid, the invalid part or parts shall be severed from the remaining portions which shall remain in full force and effect. SECTION III This Ordinance was introduced at a regular meeting of the Town Council of the Town of Los Gatos on June 4, 2012, and adopted by the following vote as an ordinance of the Town of Los Gatos at a regular meeting of the Town Council of the Town of Los Gatos on June 18, 2012. This ordinance takes effect 30 days after it is adopted.. COUNCIL MEMBERS: AYES: NAYS: ABSENT: ABSTAIN: SIGNED: MAYOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA ATTEST: CLERK ADMINISTRATOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA N:`:l:)C: �' \OIt.1:>ti';►:>f;nr it; Borms Ordinance (Town Code 29 10 405 -I-) final.doe