HomeMy WebLinkAbout1992-12-02; Planning Commission; ; ZCA 91-05 - CITY OF CARLSBAD DENSITY BONUS• MEMORANDUM • GJfJ-
DATE: DECEMBER 2, 1992
TO: PLANNING COMMISSION
FROM: PLANNING DEPARTMENT
SUBJECT: ZCA 91-05 CITY OF CARLSBAD -DENSITY BONUS -An Amendment to the
Carlsbad Municipal Code (Title 21) by the addition of Chapter 21.86 to
establish requirements for the reservation and affordability of housing units
for Lower-Income and Moderate-Income Households and Senior Citizens in
residential projects under a Citywide Density Bonus Program.
I. RECOMMENDATION
That the Planning Commission ADOPT Planning Commission Resolution No. 3422
recommending APPROVAL of the Negative Declaration issued by the Planning Director and
ADOPT Planning Commission Resolution No. 3423 recommending APPROVAL of
ZCA 91-05, based on the findings contained therein.
II. DISCUSSION
At the November 18, 1992 Planning Com.mission hearing, the Planning Com.mission
directed staff to revise specific sections of the Draft Inclusionary Ordinance. In order to
ensure consistency between the Inclusionary Ordinance and the Density Bonus Ordinance,
staff is recommending the following revisions to the Draft Density Bonus Ordinance
(Revised Exhibit "X" with strikeout/highlight removed). The proposed revisions are in a
strikeout/highlight format.
1.
2.
3.
Section 21.86.070 (g), beginning on line 22.5; However cgonstruction of the target
dwelling units and density bonus dwelling units is limitecf'to sites within the same
~~
Section 21.86.080 (a), beginning on line 13.5; The valuation of the rental or for-
sale target dwelling unit(s) shall be determined by an appraisal made by an agent
~:,:.~~::ii:;~~~~~~.~{~:::ia:~=~~~~er:tfu:jn,:,:l!!ilttargettdw.el~µg
S t' 21 86 090 (b)(4) be • • on line 16.S· Within Mmn11;···:;····15fifecef:-=:tmof ~
by''rh·~···pr;=:g·:·5·~;·~rt:·~;;rth~~~part~nt shall p~ovide to ~n applk:t/~~veloper,
ZCA 91-05 CITY OF cABAD -DENSITY BONUS
DECEMBER 2, 1992
PAGE 2
ATTACHMENTS
1. Planning Commission Resolution No. 3422
2. Planning Commission Resolution No. 3423
3. Staff Report (previously distributed).
CDC:km
•
DATE:
TO:
• MEMORANDUM
NOVEMBER 18, 1992
PLANNING COMMISSION
FROM: PLANNING DEPARTMENT
•
@)
SUBJECT: ZCA 91-05 CTIY OF CARLSBAD -DENSITY BONUS -An Amendment to the
Carlsbad Municipal Code (Title 21) by the addition of Chapter 21.86 to
establish requirements for the reservation and affordability of housing units
for Lower-Income and Moderate-Income Households and Senior Citizens in
residential projects under a Citywide Density Bonus Program.
I. RECOMMENDATION
That the Planning Commission ADOPT Planning Commission Resolution No. 3422
recommending APPROVAL of the Negative Declaration issued by the Planning Director and
ADOPT Planning Commission Resolution No. 3423 recommending APPROVAL of ZCA
91-05, based on the findings contained therein.
II. DISCUSSION
The Draft Density Bonus Ordinance was scheduled to be heard by the Planning Commission
on October 28, 1992 and November 4, 1992. At the November 4th Planning Commission
hearing, ZCA 91-05 was continued to November 18, 1992.
During this continuation period, staff undertook revisions to the Draft Inclusionary
Ordinance (ZCA 91-06). Those sections of the Draft Density Bonus Ordinance, which are
substantially the same as the Inclusionary Ordinance, have also been revised to be
consistent with the revisions proposed in the Inclusionary Ordinance.
In order to clearly identify the proposed Ordinance changes for the Planning Commission,
the revised Draft Density Bonus Ordinance is in a strike-out/highlight format. Text to be
deleted is in a strike-out type; new text is in a highlighted type. The strikeout/highlighting
associated with revisions proposed to the Ordinance after it was distributed at a July 15,
1992 Planning Commission Workshop have been removed. Prior to taking this Ordinance
to the City Council, it will be cleaned up to remove the strike-out/highlighting associated
with this revision. A copy of the proposed Council ordinance is included in your packet
for reference. •
ATTACHMENTS:
1. Planning Commission Resolution No. 3422
2. Planning Commission Resolution No. 3423 with Revised Exhibit "X"
3. Proposed Ordinance with strike-out/highlight removed
4. Staff Report dated October 28, 1992 (previously distributed).
K:ZCA915-2.MEM
'
DATE:
TO:
FROM:
SUBJECT:
•
MEMORANDUM
NOVEMBER 18, 1992
PLANNING COMMISSION
PLANNING DEPARTMENT
•
ZCA 91-05 CfIY OF CARLSBAD -DENSTIY BONUS -An Amendment to the Carlsbad
Municipal Code (Title 21) by the addition ·of Chapter 21.86 to establish
requirements for the reservation and affordability of housing units for Lower-Income
and Moderate-Income Households and Senior Citizens in residential projects under
a Citywide Density Bonus Program.
The following changes/ corrections have been made to Revised Exhibit "X" strikeout/highlight
version:
Page 12 -
Page 16 -
;;._ 112 -dwelling unit(s) fmffltifrp~tpf::.p.n:Widmg.diffdtlabffi
line 25 1/2 -delete the word "ana:" at end of line.
line 10 -add ;(j). ........
line 12 -cannot disallow the incentive(s) !fflf&:UBit~JiotiHtl!.8.~l~f.tl. ....
line 12 1/2 -health i.ffil safety. and 7Nelfare, or injmious to property and/or
improv~ments withiit'°'ffie projeets vieinity.
The following changes/ corrections have been made to Revised Exhibit "X" with strikeout/highlight
removed:
Page 11 -line 12 -recent inventory. :(§.l In cases ...
on the basis that it is m1::~:ni~e=~~~~~~li~~:i:n;d~~!~!J~'!!~~;,!J;~~;
to property and/or improvements 7Nit:hi:B. the projeets vieinity. •
ATTACHMENTS:
1. Revised pages 12, 16 and 11, respectively.
J.
2
• •
(4) All rental units shall be occupied by their renters. Renting, leasing,
subleasing or subletting shall be allo'Ned only if the total household income, including
income from all potential renters, or lessees, qualifies under the requirements of this
Chapter;
3 (5) A notice of availability of rental target dv1elling units shall be prepared
by the property O'lmer and submitted to the Housing Department of the City after final
4 inspection of the project by the City. The Housing Department of the City, upon written
notification from the ovmer that rental target ®'elling units are available, shall authorize
5 the rental of the target d:r.velling units to qualified tenants; and
(6) At any time a lower income tenant occupying a target rental ®'elling
6 unit no longer qualifies under the income or household size prov.isions specified abo-ve,
7 that tenant may, upon suitable notice, then be charged market rate rent. If this occurs,
any comparable and currently vacant market rate unit shall then be designated as a target
8 rental dwelling unit fur lower income households, and the o:r.1mer/manager shall
immediately attempt to secure tenants in accordance vii.th this Section. If no vacant units
9 are available at such time, the nen comparable available vacant unit shall be designated
as the target rental drNelling unit.
lO (7) At the end of the unit tenure, required target rental units may be
11 converted to market rate or non restricted units under the fullmving circumstances:
12 21¥86i080itt: .: ... :'.: .,rrafio.ntciffaM'fordabilf. ·= 4Fenu=re~
13
14
15
16
17
18
19
20
21 (:t~ The management of the complex intending to convert target rental
units to market~i-ate units shall give notice of such intent, via registered mail, to each
22 affected tenant household and to the Housing Authority of the City millE.lifk. Said
notice shall be given at least one hundred eighty (180) days prior to the date proposed for
23 conversion to market-rate rents; and
{llfBt Each affected tenant household shall be eligible to receive rental
24 relocation assisfance in an amount equal to four ( 4) months rent, said assistance to be
25 provided by the owner/management company and paid to the tenant at least sixty (60)
days prior to conversion to market-rate rents;
26
27
28
(10) The CY.Viler/management firm responsible for projects containing target
rental units shall prov.ide 24 hour per day management services.
-12-
• •
( d) Review: The Community Development Director and/or his/her designated staff
J. shall evaluate the request based upon the following criteria:
(1) The density bonus housing project helps achieve the City's housing goals
2 for lower-income, moderate-income or qualified senior households, as set forth in the
3 Housing Element of the General Plan;
(2) The requested incentive( s) (including, but not limited to, atidiU6ha.i
4 density bonuses, requests for a mixed use project, reduction in development standards, or
direct or indirect financial contributions) must be necessary to make the project
5 economically feasible;
(3) The housing project shall not result in an overall development pattern
6 that is incompatible with other structures aB:d land uses in the immediate vicinity; and
7 ( 4) The density bonus housing project complies with the General Plan,
zoning and development policies of the City of Carlsbad.
8 (5) That the conversion of apartment units to condominiums shall not result
in a reduction in the affordable housing stock for lower income groups, as of the most
9 recent inventory.
( 6) In cases where an applicant/developer agrees to construct a housing
lO development with ten percent (10%) or twenty percent (20%) or fifty percent (50%) of
11 the units restricted and affordable to very low-income, low-income, or qualified households
respectively, and an additional incentive is requested, the Planning Director and/or his staff
12 cannot disallow the incentive(s) ~*-¥¢9:M!!P:i'@!§~c.flpjj,,,:,j,g.!:!~~~RRI!:f.F:l: on the basis that it is
materially detrimental to public health and safety. and welfare, or injurious to property
13 and/or improvements vlithin the projects' vicinity.
14 ~~~~~IP,021.86.120. Inclusion of Density Bonus Housing Agreement as a Condition
15 of Development.
(a) Applicants/developers, requesting a density bonus, additional incentives or in-
16 lieu incentives pursuant to this Chapter, shall demonstrate compliance with this Chapter
by the preparation and approval of a Density Bonus Housing Agreement. A Density 1 7 Bonus Housing Agreement shall be submitted by the applicant to the City. The terms of
18 the draft agreement shall be reviewed by the Planning Director and Director of Housing
and Redevelopment, who shall formulate a recommendation and refer the matter to the
19 Community Development Director or his/her designee for final approval. Following the
approval and the signing by all parties, the completed Density Bonus Housing Agreement
20 shall be recorded and the relevant terms and conditions therefrom filed and recorded as
a deed restriction on those individual lots or units of a property which are designated for
the location of target dwelling units. The approval and recordation shall take place prior
to final map approval, or, where a map is not being processed, prior to issuance of
building permits for such lots or units. The Density Bonus Housing Agreement shall be
21
22
23 binding to all future owners and successors in interest.
(b) A Density Bonus Housing Agreement for new residential construction
24 processed pursuant to this Chapter shall be requirnd to include the following:
(1) The number of density bonus dwelling units granted; 25 (2) The number of lower-income and senior dwelling units proposed;
26 (3) The unit size(s) (square footage) of target dwelling units and the
number of bedrooms per target dwelling unit;
27
units; 28
( 4) The proposed location of the lower-income and senior target dwelling
-16-
l
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
• •
proposed project to justify the request.
( 6) In the case of a condominium conversion request, a report documenting
the following information for each unit proposed to be converted: the monthly income of
tenants of each unit throughout the prior year, the monthly rent for each unit throughout
the prior year, and vacancy information for each unit throughout the prior year.
( d) Review: The Community Development Director and/or his/her designated staff
shall evaluate the request based upon the following criteria:
(1) The density bonus housing project helps achieve the City's housing goals
for lower-income, moderate-income or qualified senior households, as set forth in the
Housing Element of the General Plan;
(2) The requested incentive(s) (including, but not limited to, additional
density bonuses, requests for a mixed use project, reduction in development standards, or
direct or indirect financial contributions) must be necessary to make the project
economically feasible;
(3) The housing project shall not result in an overall development pattern
that is incompatible with other land uses in the immediate vicinity; and
( 4) The density bonus housing project complies with the General Plan,
zoning and development policies of the City of Carlsbad.
(5) That the conversion of apartment units to condominiums shall not result
in a reduction in the affordable housing stock for lower income groups, as of the most
recent inventory.
( 6) In cases where an applicant/developer agrees to construct a housing
development with ten percent (10%) or twenty percent (20%) or fifty percent (50%) of
the units restricted and affordable to very low-income, low-income, or qualified households
respectively, and an additional incentive is requested, the Planning Director and/or his staff
cannot disallow the incentive( s) listed in Section 21.86.060( c) on the basis that it is
materially detrimental to public health and safety.
21.86.100. Inclusion of Density Bonus Housing Agreement as a Condition of
Development.
(a) Applicants/developers, requesting a density bonus, additional incentives or in-
lieu incentives pursuant to this Chapter, shall demonstrate compliance with this Chapter
by the preparation and approval of a Density Bonus Housing Agreement. A Density
Bonus Housing Agreement shall be submitted by the applicant to the City. The terms of
the draft agreement shall be reviewed by the Planning Director and Director of Housing
and Redevelopment, who shall formulate a recommendation and refer the matter to the
Community Development Director or his/her designee for final approval. Following the
approval and the signing by all parties, the completed Density Bonus Housing Agreement
shall be recorded and the relevant terms and conditions therefrom filed and recorded as
a deed restriction on those individual lots or units of a property which are designated for
the location of target dwelling units. The approval and recordation shall take place prior
to final map approval, or, where a map is not being processed, prior to issuance of
building permits for such lots or units. The Density Bonus Housing Agreement shall be
binding to all future owners and successors in interest.
(b) A Density Bonus Housing Agreement for new residential construction
processed pursuant to this Chapter shall include the following:
(1) The number of density bonus dwelling units granted;
(2) The number of lower-income and senior dwelling units proposed;
-11-
•
MEMORANDUM
DATE: NOVEMBER 4, 1992
TO: PLANNING COMMISSION
FROM: PLANNING DEPARTMENT
SUBJECT: ZCA 91-05 CITY OF CARLSBAD -DENSITY BONUS -An Amendment to
the Carlsbad Municipal Code (Title 21) by the addition of Chapter 21.86 to
establish requirements for the reservation and affordability of housing units
for Lower-Income and Moderate-Income Households and Senior Citizens
in residential projects under a Citywide Density Bonus Program.
I. RECOMMENDATION
That the Planning Commission ADOPT Planning Commission Resolution No. 3422
recommending APPROVAL of the Negative Declaration issued by the Planning Director
and ADOPT Planning Commission Resolution No. 3423 recommending APPROVAL
of ZCA 91-05, based on the findings contained therein.
II. DISCUSSION
The matter was scheduled to be heard on October 28, 1992 and was continued to the
meeting of November 4, 1992. All staff reports and documents were transmitted with the
Planning Commission packet for October 28, and are not being redistributed.
ATTACHMENTS
1. Planning Commission Resolution No. 3422
2. Planning Commission Resolution No. 3423
• •
STAFF REPORT
DATE: OCTOBER 28, 1992
TO: PLANNING COMMISSION
FROM: PLANNING DEPARTMENT
SUBJECT: ZCA 91-05 CTIY OF CARLSBAD -DENSfIY BONUS -An Amendment to the
Carlsbad Municipal Code (Title 21) by the addition of Chapter 21.86 to
establish requirements for the reservation and affordability of housing units
for Lower-Income and Moderate-Income Households and Senior Citizens in
residential projects under a Citywide Density Bonus Program.
I. RECOMMENDATION
That the Planning Commission ADOPT Planning Commission Resolution No. 3422
recommending APPROVAL of the Negative Declaration issued by the Planning Director and
ADOPT Planning Commission Resolution No. 3423 recommending APPROVAL of
ZCA 91-05, based on the findings contained therein.
II. PROJECT DESCRIPTION AND BACKGROUND
Program 3.7.a. of the City's Housing Element (October 22, 1991), specifies that the City
shall adopt an Ordinance which implements State Government Code Sections 65915, and
65915.5 (State Density Bonus Law).
Government Code Section 65915 requires the City to grant either: (1) a minimum of a
25 percent density bonus over the otherwise maximum allowable residential density, and
at least one additional incentive (i.e.; (a) the reduction of site development standards, or,
architectural design requirements, (b) approval of mixed use zoning, (c) an additional
density bonus above the minimum 25%), (d) other regulatory incentives which result in
identifiable cost reductions) or (2) other in-lieu incentives of equivalent financial value
(based upon the land cost per dwelling unit), in return for a developer guaranteeing that
a residential project will reserve either: 20% of the total units as affordable to low-income
households, or 10% of the total units as affordable to very low-income households, or 50%
of the total units for qualified (senior) residents.
ZCA 91-05 -CITY OF ~AD
DENSITY BONUS
OCTOBER 28, 1992
PAGE2
Government Code Section 65915.5 (relating to condominium conversions) requires the City
to either: (1) grant a minimum of a 25% density bonus over the number of apartment
units within an existing apartment project which is proposed for conversion or (2) provide
other incentives of equivalent financial value (i.e.; the reduction or waiver of requirements
which the City might otherwise apply as conditions of condominium conversion approval),
in return for a developer guaranteeing to reserve either: 33% of the converted
condominium units of the proposed condominium project for low or moderate-income
households, or 15% of the total units of the proposed condominium project for lower
income households.
The primary objective of State Density Bonus Law is to require local governments to offer
the private sector sufficient economic incentives to encourage and enable the development
of affordable housing. This State Law differs somewhat from the City's proposed
Inclusionary Ordinance, which mandates that affordable housing be provided by the private
sector without guarantee of any City incentives.
This project is a Zone Code Amendment (ZCA 91-05)' to the Carlsbad Municipal Code,
(Title 21) to establish a Citywide Density Bonus Ordinance (Chapter 21.86), consistent
with the above mentioned sections of State Code.
m. ANALYSIS
A draft of the Density Bonus Ordinance was distributed at a Planning Commission
workshop on July 15, 1992. Since that workshop, the draft ordinance has been revised.
In order to clarify for the Planning Commission what those specific revisions are, the draft
ordinance is in a strike-out/highlight format. Text to be deleted is in a strike-out type; new
text is in highlighted type. Prior to taking the draft ordinance forward to the City Council,
it will be cleaned up to remove the strike out/highlight format.
In that many of the sections of the Density Bonus Ordinance are substantially the same
sections that are included within the proposed new Inclusionary Housing Ordinance (See
Table-I ), reference should be made to the Inclusionary Housing Program staff report for
discussion of those particular sections. Included herein is a brief synopsis of those sections
or provisions of sections of the proposed Density Bonus Ordinance which vary from the
Inclusionary Ordinance. Refer to Exhibit "X'' to review in detail all definitions and text
additions of the proposed Density Bonus Ordinance.
ZCA 91-05 -CilY OF &BAD
DENSI1Y BONUS
OCTOBER 28, 1992
PAGE3
Planning Issues
21.86.060
21.86.070
21.86.080
21.86.090
21.86.100
21.86.110
21.86.120
21.86.130
21.86.140
21.86.150
21.86.160
21.86.170
21.86.180
TABLE -1
21.85.160
21.85.120
21.85.130
21.85.140
21.85.150
21.85.170
21.85.180
21.85.190
21.85.200
21.85.210
21.85.220
21.85.230
21.85.240
1. What is the minimum-sized residential project (number of units) which may qualify
for a 25% density bonus and additional incentive?
2. What is the methodology for calculating the required number of density bonus units
and affordable units?
3. Are density bonus units and/or affordable units permitted to be located offsite?
4. What economic incentives is the City obligated to provide a project which is
approved under Density Bonus Law?
5. What are the density bonus housing standards regarding: (1) tenure of affordability,
and (2) location of units?
6. What standards shall apply to a project which is subject to the Inclusionary
Ordinance and also requests a Density Bonus?
7. Is the proposed Zone Code Amendment consistent with the various elements of the
General Plan?
ZCA 91-05 -CTIY OF &eAD
DENSrIY BONUS
OCTOBER 28, 1992
PAGE4
DISCUSSION
•
Section 21.86.010 Purpose and intent. -This section includes specific Objective and
Program statements from the City's Housing Element relative to the City's commitment to
adopt an Ordinance which implements State Density Bonus Law and to promote housing
opportunities for lower-income, moderate-income and senior households.
Section 21.86.020 Definitions. -This section proposes several new definitions for new
terms which are included within the Density Bonus Chapter of Title 21. This section also
duplicates a number of terms and definitions which are proposed under ZCA 91-06
(Inclusionary Ordinance). The new terms include the following: Additional Incentives,
Affordable Housing (Density Bonus), Housing Development, In-Lieu Incentives, Incentives,
Maximum Allowable Residential Yield, Partial Density Bonus, Density Bonus Dwelling
Units, Qualifying Resident, and Target Dwelling Unit. The majority of the new terms and
definitions are taken directly from State Law. One new term, "Maximum Allowable
Residential Yield", means the maximum number of residential units permitted on a project
site and is calculated by multiplying the net developable acreage of a site times the Growth
Management Control Point of that site. Any density bonus units granted wo¢d be in
addition to those achievable under the Maximum Allowable Residential Yield for a site.
Section 21.86.030 Regulations for new residential construction. -This section establishes
the regulations and requirements for residential development applications for new
residential projects processed under the Density Bonus Ordinance. The City shall be
required to grant either: a 25% density bonus and at least one additional incentive or in-
lieu incentives of equivalent financial value (based upon the land cost per dwelling unit)
to an applicant who agrees to construct and reserve as affordable housing either: 1) 10%
of the units for very low-income households; or 2) 20% of the units for low-income
households; or 3) 50% of the total units for senior households. The other key provisions
of this section are described below.
A. Minimum Size of Residential Project -Consistent with State Density Bonus Law, in
order to qualify for a 25% density bonus and an additional incentive or in-lieu
incentives, a residential project must be at least 5 units in size (excluding the
density bonus units).
8. Density Bonus Calculation. -State Government Code Section 6591S(f) mandates
that the base density for calculating a density bonus is, ... "the otherwise maximum
allowable residential density under the applicable zoning ordinance and land use
element of the general plan ... ". Accordingly, Section 21.86.030 of this ordinance
specifies that the number of density bonus dwelling units to be granted is equal to
the product of the Maximum Allowable Residential Yield of the project site times
.25. It is important to understand that "density bonus", as defined by State Law,
means that a density increase of "at least" 25% must be provided. Since State Law
Zc.A 91-05 -CTIY OF ~AD
DENSfIY BONUS
OCTOBER 28> 1992
PAGES
•
only establishes a minimum density bonus standard (25%) for local programs, a
developer of affordable housing may request a density bonus greater than 25%.
Any density bonus granted above 25% shall be considered as an additional incentive
as defined within this Ordinance.
In that State Law also specifies that the City shall provide a density increase of "at
least" 25%, it has been interpreted by the State Department of Housing and
Community Development (HCD) that any resulting fraction of a density bonus unit
shall be rounded up and counted as a whole unit.
C. Number of Required Affordable Units -The methodology for calculating the number
of required affordable units under Density Bonus Law, is similar to the method used
for calculating the required number of density bonus units (Maximum Allowable
Residential Yield) times .10 (very-low), or .20 (low), or .50 (senior)), with the
exception that the calculation is based upon the Maximum Allowable Residential
Yield of the project prior to the addition of any bonus units. As illustrated in the
following example, of the six (6) bonus units required to be granted, only five (5)
are required to be restricted to low-income households. It appears to be the intent
of State Law that the purpose of the one bonus market-rate unit which this project
would be granted is to help the developer to finance the 5 required affordable units.
General Plan Designation:
Permitted Density:
Property Size:
Maximum Units at Permitted Density:
Density Bonus Units at 25%
(23 DU x 1.25 = 28. 75); round up:
Required Affordable Units at 20% Low-Income
(23 DU x .20 = 4.6); round up:
Total Project Units:
RMH
11.5 DU/AC
2 Acres
23 Units
29 Units
5 Units
24 Market Rate Units
5 Low-Income Units
29 Total Units
Because State Density Bonus Law specifies that any density bonus granted shall be in
addition to the maximum density permitted under the General Plan (the City's Growth
Management Control Points), it is important to understand that any bonus units granted
would need to be withdrawn from the City's Excess Unit Bank. In addition, because State
ZCA 91-05 -CI1Y OF &aAD
DENSITY BONUS
OCTOBER 28, 1992
PAGE6
Density Bonus Law requires the provision of economic incentives (density bonuses) in
exchange for affordable units, that between 20% and 60% of the bonus units granted
(withdrawn from the Excess Unit Bank) would be permitted to be developed as market rate
units. As an example, a 25% density bonus added to a property which could achieve, by
right, 100 units would yield 125 total units (100 X 1.25 = 125 DU's). Of the 25 bonus
units, either 10 (100 X 10%) or 20 (100 X 20%) would be required to be reserved for low
or very low income households, respectively. The balance of the bonus units, either, 15/25
(60%) or 5/25 (20%) would be market rate units.
Under the proposed Ordinance, and consistent with State guidelines for density bonuses,
any resulting decimal fraction of an affordable dwelling unit shall be counted as a whole
unit. •
Section 21.86.040 Regulations for condominium conversions. -State Density Bonus Law
(Government Code Section 65915.5) also applies to condominium conversions. This
section establishes the regulations and requirements for condominium conversions
processed under the Density Bonus Ordinance. The City shall be required to grant either:
a 25% density bonus or in-lieu incentives of equivalent financial value (based upon the
land cost per dwelling unit) to an applicant proposing to convert apartments to
condominiums who agrees to reserve as affordable either: 1) 33% of the units for low or
moderate-income households; or 2) 15% of the units for lower-income households. The
other key provisions of this section are described below.
A Density Bonus Calculation. -Consistent with Government Code Section 65915.5, the
number of density bonus dwelling units to be granted would be equal to the number
of existing, apartment units within an apartment project, multiplied by .25. While
it may not be feasible to add the density bonus to an existing apartment project,
State Law, and therefore, the Density Bonus Ordinance would allow the bonus units
to be developed on a separate site controlled by the applicant.
It is more likely that an applicant pursuing a condominium conversion under the
Density Bonus Ordinance, would request from the City other incentives of equivalent
financial value, instead of a density bonus. A financial incentive, such as
modifications of development standards (modifying standards of the Planned
Development Ordinance), would enable an existing apartment project to be
converted to a condominium. Any resulting decimal fraction of a density bonus unit
would be counted as a whole unit.
B. Number of required affordable units. -The methodology for calculating the number
of required affordable units, is similar to the means for calculating the number of
required bonus units (number of existing apartment units times .33 low/ moderate,
or .15 lower income). Any resulting decimal fraction of an affordable dwelling unit
would be counted as a whole unit.
ZCA 91-05 -CfIY OF &BAD
DENSrIY BONUS
OCTOBER 28, 1992
PAGE7
•
Section 21.86.050 Combined density bonus housing projects. -State Density Bonus Law,
Section 6591S(g) specifies that "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". This section of State Law goes on to define housing development
as "one or more groups of projects for residential units constructed in the planned
development of a jurisdiction". Consistent with this wording, Section 21.86.050, Combined
Density Bonus Housing Projects would allow income restricted target dwelling units and
non-income restricted density bonus units to be produced and operated at a second site
(through· a Combined Density Bonus Housing Project).
This section of the Density Bonus Ordinance is similar to Section 21.85.110 -Combined
Inclusionary Housing Project of the Inclusionary Ordinance with the exception that through
a Combined Density Bonus Housing Project, non-income restricted density bonus units
would be allowed to be transferred to another site.
Section 21.86.060 Density bonus, equivalent in-lieu incentives, and additional incentives. -
This section identifies what economic incentives the City is obligated to provide a project
which is approved under the proposed Density Bonus Ordinance. It is important to
understand that State Law does not require that a project be approved just because it
complies with density bonus requirements. However, a housing development which seeks
and qualifies for a density bonus and additional incentives, or in-lieu incentives, cannot be
approved without granting the density bonus and incentive or in-lieu incentives.
In addition to providing a minimum 25% density bonus, the City shall provide at least one
additional incentive, which may include, but not be limited to the following:
1) Modification of development standards, i.e.; street widths, structural
setbacks, parking requirements, minimum lot sizes, open space/recreational
requirements or landscaping.
2) Reduction or elimination of design requirements which exceed State building
codes, including restrictions on roofing materials.
3) Allow non-residential uses to be developed in conjunction with residential
uses if the mixed use project would reduce the cost of the target units.
4) Provide other concessions which will result in identifiable cost reductions,
i.e.; additional density bonus, or direct financial aid (subsidized permit fees,
redevelopment set aside funds, or Community Development Block Grant
funds), subsidizing infrastructure, land costs or construction costs.
Section 65917 of State Law places the burden on the City for the additional incentive to
"contribute significantly to the economic feasibility of lower-income housing in proposed
housing developments". This means that the incentives must directly affect the financial
ZCA 91-05 -CTIY OF &BAD
DENSfIY BONUS
OCfOBER 28, 1992
PAGES
feasibility of including the target units in proposed projects. The additional incentive must
be provided by the City unless the City makes a written finding that the additional
incentive is not required to make the target units affordable. In this situation, the City
would assume the burden of establishing that the project, with the affordable units, would
be feasible without the incentive.
If the City chooses not to offer a 25% density bonus, then the City shall offer in-lieu
incentives of equivalent financial value (based upon the land cost per dwelling unit).
These in-lieu incentives could include, but are not limited to the additional incentives
discussed above.
Whatever incentives are granted, it is important that the incentives be regarded as
sufficiently compelling to motivate incorporating affordable units within projects. In
theory, the benefits of the incentive(s) should balance the long-term (30 year) use and
income restrictions on the affordable units.
Section 21.86.070 Density bonus housing standards.
A Tenure of Affordability -Consistent with State Law, when the City grants both a
density bonus and an additional incentive, or in-lieu incentives of equivalent
financial value in the form of direct financial contributions, the target units must be
maintained as affordable for a minimum period of 30 years or a longer period of
time if required by the construction or mortgage financing assistance program,
mortgage insurance program, or rental subsidy program. If only a density bonus is
granted, without an additional incentive, or in-lieu incentives, other than direct
financial contributions are granted, affordability of the target units is required for
a minimum of 10 years.
Section 65915.5 of Government Code specifies, with respect to condominium
conversions, processed under State Density Bonus Law, that the City may place such
reasonable conditions on the granting of a density bonus, including," ... conditions
which assure continued affordability of units to subsequent purchasers". In
accordance, it is recommended that all target units, created through condominium
conversion, shall be reserved as affordable for a minimum period of 30 years.
B. Location standard for affordable units. -While State Density Bonus Law would
allow density bonus units and/or affordable units to be developed on a site separate
from the market rate units, the Density Bonus Ordinance includes affordable housing
location standards applicable to all projects, with the highest priority being,
"location within the same project site of the proposed market rate units". While all
residential projects shall be tasked to comply with this location standard, master and
specific plan areas in particular, because they include large tracts of land, often
under single ownership, should be more able to provide a comprehensive affordable
housing solution, which incorporates integration of required affordable units.
ZCA 91-05 -CTIY OF &BAD
DENSfIY BONUS
OCTOBER 28, 1992
PAGE9
This section of the Density Bonus Ordinance also requires that master and specific
plan developers proposing to satisfy Citywide Inclusionary requirements through
requesting a density bonus, shall be required to provide an affordable housing
proposal which disperses the target units throughout the master/specific plan area.
This standard is recommended to emphasize the City's objective of fully integrating
affordable units with market rate units.
It is however, important to understand that in the interest of providing prospective
developers of affordable housing with sufficient flexibility to achieve the affordable
units, this Ordinance would allow Combined Density Bonus Housing Projects
(Section 21.86.050) to be pursued.
This section also clarifies that while a developer may request to process a residential
project pursuant to the standards and requirements of the Density Bonus Ordinance,
all residential projects within the City are subject to and must satisfy all
requirements of the Inclusionary Ordinance (Chapter 21.85).
For example, a developer requesting a 25% density bonus and no additional
incentives (under Density Bonus Law this would require a 10 year affordability
tenure) in exchange for reserving 10% of the units for very low-income households
or 50% of the units for senior households would still have an obligation under the
Inclusionary Ordinance to provide 15% of the project's base units as affordable to
a low-income household, for a minimum tenure of 30 years.
Relationship between Inclusionary and Density Bonus Ordinances.
The City's proposed Inclusionary Ordinance mandates that affordable dwelling units be
produced (15% low income) without a guarantee of any City economic incentives. State
Density Bonus Law differs from the City's proposed Inclusionary Ordinance in that it
requires local governments to offer economic incentives (i.e.; 25% density bonus and an
additional inc~ntive or in-lieu incentives) to private developers to encourage and enable
the production of affordable housing (either 10% very-low income, or 20% low income or
50% senior).
As discussed earlier, a developer may request to process a residential application under the
proposed Density Bonus Ordinance. Consistent with the proposed ordinance, the developer
would be entitled to a density bonus and an additional incentive in exchange for reserving
a percentage of the total units as affordable or for senior households.
However, since all residential projects within the City shall be subject to inclusionary
requirements (i.e.; 15% of the base units of a project reserved as affordable to low-income
households for a minimum tenure of 30 years), any developer proposing to satisfy
inclusionary requirements through use of the Density Bonus Ordinance, shall be subject to
the minimum standards and requirements of the Inclusionary Ordinance. Otherwise, where
ZCA 91-05 -CI1Y OF &BAD
DENSITY BONUS •
OCTOBER 28, 1992
PAGE 10
there is a conflict in requirements between the two ordinances, the more restricted
requirement shall apply.
Consistency with the General Plan.
The Housing Element of the General Plan sets forth a goal, objective and program which
are supported by the proposed Density Bonus Ordinance, including the following:
GOAL 3 -(Groups with Special Needs, Including Low and Moderate Income
Households)
Sufficient new, affordable housing opportunities in all quadrants of the City
to meet the needs of groups, with special requirements, and, in particular,
the needs of current lower and moderate income households and a fair share
proportion of future lower and moderate income households.
OBJECTIVE 3.7 -(Lower Income Development and Incentives)
Provide incentives, housing type alternatives, and City initiated developments
and programs for the assistance of lower-income households.
PROGRAM 3. 7a -(Density Bonus)
Develop an ordinance that implements Government Code Section 65913.4
and 65915. (Density Bonus) These sections require the City to grant a
minimum of a 25 percent bonus over the otherwise allowed density, AND
one or more additional economic incentives or concessions that may include
but are not limited to: fee waivers, reduction or waiver of development
standards, in-kind infrastructure improvements, an additional density bonus
above the minimum 25 percent, mixed use development, or other financial
contributions in return for the developer guaranteeing that the project will
reserve a minimum of 50 percent of the units for Senior or other special need
households, or 20 percent of the units for low-income households or 10
percent of the units for very-low income households. These units must
remain affordable for a period of 30 years. Under the City's program each
project should enter into an agreement with the City and this agreement will
be monitored by the Housing and Redevelopment Department for
compliance.
Consistent with the intent of this goal, objective, and program, the proposed Density Bonus
Ordinance would: 1) provide for affordable housing opportunities for lower-income,
moderate-income and senior households; 2) provide incentives for the assistance of lower-
income households; and 3) satisfy the City's commitment to develop an ordinance that
implements Government Code Sections 65915-65917.
ZCA 91-05 -CITY OF ctlsBAD
DENSITY BONUS
OCTOBER 28, 1992
PAGE 11
•
In that this zone code amendment implements this goal, objective and program of the City's
Housing Element, it is consistent with the General Plan.
SUMMARY
In summary, since the proposed Density Bonus Ordinance is consistent with the various
elements of the General Plan and. implements State Government Code Sections 65915 -
65917, staff recommends approval of ZCA 91-05.
N. ENVIRONMENTAL REVIEW
The Planning Director has determined that this zone code amendment, to add a Density
Bonus Chapter to Carlsbad's Zoning Ordinance, will not have a significant impact on the
environment and therefore has issued a Negative Declaration on June 25, 1992. The
environmental analysis concluded that since: (1) this zone code amendment is not
associated with any specific development project; (2) will not directly result in any
significant physical, biological or human environmental impacts, and that; (3) any future
residential development processed pursuant to the Density Bonus Program shall be required
to undergo detailed environmental review, no project specific impacts are anticipated.
There were no letters of comment received during the public review period for this
Negative Declaration.
ATTACHMENTS
1. Planning Commission Resolution No. 3422
2. Planning Commission Resolution No. 3423
3. Government Code Sections 65915-65917.
CDD:km:vd:lh
July 16, 1992