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HomeMy WebLinkAbout2006-03-28; City Council; NS-794; Amending Density Bonus and Inclusionary Housing Regulations in Zoning Ordinance...ORDINANCE NO. NS-794 AN ORDINANCE OF THE ClTY COUNCIL OF THE ClTY OF CARLSBAD, CALIFORNIA AMENDING TITLE 21 OF THE MUNICIPAL CODE BY AMENDING THE DENSITY BONUS AND INCLUSIONARY HOUSING REGULATIONS IN THE ZONING ORDINANCE TO ENSURE THE DENSITY BONUS REGULATIONS ARE CONSISTENT WITH CALIFORNIA GOVERNMENT CODE SECTIONS 6591 5 THROUGH 65917, AND THAT THE DENSITY BONUS AND INCLUSIONARY HOUSING REGULATIONS DO NOT CONFLICT. CASE NAME: DENSITY BONUS AMENDMENTS CASE NO.: ZCA 04- 1 0 The City Council of the City of Carlsbad, California does ordain as follows: SECTION 1: That the list of sections at the beginning of Chapter 21.85 is amended to read as follows: Sections: 21.85.010 21.85.020 21.85.030 21.85.035 21.85.040 21.85.050 21.85.060 21.85.070 21.85.080 21.85.090 21.85.100 21.85.110 21.85.120 21.85.130 21.85.140 21.85.145 21.85.150 21.85.155 21.85.160 21.85.170 21.85.180 21.85.190 Purpose and intent. Definitions. lnclusionary housing requirement. New master plans or specific plans. Affordable housing standards. Calculating the required number of inclusionary units. lnclusionary credit adjustment. Alternatives to construction of inclusionary units. Combined inclusionary housing projects. Creation of inclusionary units not required. Offsets to the cost of affordable housing development. In-lieu fees. Collection of fees. Preliminary project application and review process. Affordable housing agreement as a condition of development. Agreement processing fee. Agreement amendments. Expiration of affordability tenure. Pre-existing approvals. Enforcement. Savings clause. Separability of provisions. SECTION 2: That Section 21.85.010.A.l of the Carlsbad Municipal Code is amended to read as follows: 1. Require that a minimum of fifteen (15%) percent of all approved residential development be restricted to and affordable to lower-income households; subject to adjustment based on the granting of an inclusionary credit; SECTION 3: That Section 21.85.020 of the Carlsbad Municipal Code is amended to read as follows: 4 21.85.020 Definitions. Whenever the following terms are used in this chapter, they shall have the meaning established by this section: 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, as follows: 1. Extremely low-income, rental or for-sale units: the product of 30% times 30% of the county median income, adjusted for household size; 2. Very low-income, rental and for-sale units: the product of 30% times 50% of the county median income, adjusted for household size; 3. Low-income, for-sale units: the product of 30% times 80% of the county median income, adjusted for household size; and 4. Low-income, rental units: the product of 30% times 70% of the county median income, adjusted for household size. B. "Affordable housing agreement" means a legally binding agreement between a developer and the city to ensure that the inclusionary requirements of this chapter are satisfied. The agreement establishes, among other things, the number of required inclusionary units, the unit sizes, location, affordability tenure, terms and conditions of affordability and unit production schedule. C. "Allowable housing expense" means the total monthly or annual recurring expenses required of a household to obtain shelter. For a for-sale unit, allowable housing expenses include loan principal and interest at the time of initial purchase by the homebuyer, allowances for property and mortgage insurance, property taxes, homeowners association dues and a reasonable allowance for utilities as defined by the Code of Federal Regulations (24CFR982). For a rental unit, allowable housing expenses include rent and a utility allowance as established and adopted by the city of Carlsbad housing authority, as well as all monthly payments made by the tenant to the lessor in connection with use and occupancy of a housing unit and land and facilities associated therewith, including any separately charged fees, utility charges, or service charges assessed by the lessor and payable by the tenant. D. "Affordable housing policy team" shall consist of the community development director, planning director, housing and redevelopment director, administrative services directorlfinance director, and a representative of the city attorney's office. E. "Combined inclusionary housing project" means separate residential development sites which are linked by a contractual relationship such that some or all of the inclusionary units which are associated with one development site are produced and operated at a separate development site or sites. F. "Conversion" means the change of status of a dwelling unit from a purchased unit to a rental unit or vice versa. G. "Density bonus" shall have the same meaning as defined in Section 21.86.020.A.7 of this title. H. "Extremely low-income household" means those households whose gross income is equal to or less than thirty (30%) percent of the median income for San Diego County as determined by the U.S. Department of Housing and Urban Development. I. "Financial assistance" means assistance to include, but not be limited to, the subsidization of fees, infrastructure, land costs, or construction costs, the use of redevelopment set-aside funds, community development block grant (CDBG) funds, or the provision of other direct financial aid in the form of cash transfer payments or other monetary compensation, by the city of Carlsbad. J. "Growth management control point" shall have the same meaning as provided in Chapter 21.90, Section 21.90.045 of this title. K. "Incentives or concessions" shall have the same meaning as defined in Section 21.86.020.A.7 of this title. L. "lnclusionary credit" means a reduction in the inclusionary housing requirement granted in return for the provision of certain desired types of affordable housing or related amenities as determined by the city council. M. "lnclusionary housing project" means a new residential development or conversion of existing residential buildings which has at least fifteen (15%) percent of the total units reserved and made affordable to lower-income households as required by this chapter. N. "lnclusionary unit" means a dwelling unit that will be offered for rent or sale exclusively to and which shall be affordable to lower-income households, as required by this chapter. 0. "Income" means any monetary benefits that qualify as income in accordance with the criteria and procedures used by the city of Carlsbad housing and redevelopment department for the acceptance of applications and recertifications for the Tenant Based Rental Assistance Program, or its successor. P. "Low-income household" means those households whose gross income is more than fifty (50%) percent but does not exceed eighty (80%) percent of the median income for San Diego County as determined annually by the U.S. Department of Housing and Urban Development. Q. "Lower-income household" means low-income, very low-income and extremely low-income households, whose gross income does not exceed eighty (80%) percent of the median income for San Diego County as determined annually by the US. Department of Housing and Urban Development. R. "Market-rate unit" means a dwelling unit where the rental rate or sales price is not restricted either by this chapter or by requirements imposed through other local, state, or federal affordable housing programs. S. "Offsets" means concessions or assistance to include, but not be limited to, direct financial assistance, density increases, standards modifications or any other financial, land use, or regulatory concession which would result in an identifiable cost reduction enabling the provision of affordable housing. T. "Residential development" means any new residential construction of rental or for-sale units; or development revisions, including those with and without a master plan or specific plan, planned unit developments, site development plans, mobilehome developments and conversions of apartments to condominiums, as well as dwelling units for which the cost of shelter is included in a recurring payment for expenses, whether or not an initial lump sum fee is also required. U. "Target income level" means the income standards for extremely low, very low and low-income levels within San Diego County as determined annually by the U.S. Department of Housing and Urban Development, and adjusted for family size. V. "Total residential units" means the total units approved by the final decision making authority. Total residential units are composed of both market rate units and inclusionary units. W. "Very low-income household" means a household earning a gross income equal to fifty (50%) percent or less of the median income for San Diego County as determined annually by the U.S. Department of Housing and Urban Development. SECTION 4: That Section 21.85.040.A of the Carlsbad Municipal Code is amended to read as follows: A. All residential developments are subject to and must satisfy the inclusionary housing requirements of this chapter, notwithstanding a developer's request to process a residential development under other program requirements, laws or regulations, including but not limited to Chapter 21.86 (Residential Density Bonus) of this code. If an applicant seeks to construct affordable housing to qualify for a density bonus in accordance with the provisions of Chapter 21.86 (Residential Density Bonus), those affordable dwelling units that qualify a residential development for a density bonus are in addition to, and do not count toward satisfying, the inclusionary housing requirements of this chapter. SECTION 5: That Section 21.85.050 of the Carlsbad Municipal Code is amended to read as follows: 21.85.050 Calculating the required number of inclusionary units. Subject to adjustments for an inclusionary credit, the required number of lower-income inclusionary units shall be fifteen (15%) percent of the total residential units, approved by the final decision-making authority. If the inclusionary units are to be provided within an offsite combined or other project, the required number of lower income inclusionary units shall be fifteen (15%) percent of the total residential units to be provided both onsite andlor offsite. Subject to the maximum density allowed per the growth management control point or per specific authorization granted by the planning commission or city council, fractional units for both market rate and inclusionary units of .5 will be rounded up to a whole unit. If the rounding calculation results in a total residential unit count which exceeds the maximum allowed, neither the market rate nor the inclusionary unit count will be increased to the next whole number. Example 1 : Total residential units = 15% lnclusionary units plus 85% Market rate units. If the final decision making authority approves 100 total residential units, then the lnclusionary requirement equals 15% of the "Total" or 15 units (100 x .I 5 = 15). The allowable market rate units would be 85% of the "Total" or 85 units. Example 2: If the inclusionary units are to be provided offsite, the total number of inclusionary units shall be calculated according to the total number of market rate units approved by the final decision-making authority. If 100 market rate units are approved, then this total is divided by .85 which provides a total residential unit count (100 - .85 = 117). The 15% requirement is applied to this "Total" (1 17 units) which equals the inclusionary unit requirement (1 17 x .I 5 = 17.6 units). SECTION 6: That Section 21.85.060 of the Carlsbad Municipal Code is amended to read as follows: 21.85.060 lnclusionary credit adjustment. Certain types of affordable housing are relatively more desirable in satisfying the city's state-mandated affordable housing requirement as well as the city's housing element goals, objectives and policies, and these may change over time. To assist the city in providing this housing, developers may receive additional (more than one unit) credit for each of such units provided, thereby reducing the total inclusionary housing requirement to less than fifteen (15%) percent of all residential units approved. A schedule of inclusionary housing credit specifying how credit may be earned shall be adopted by the city council and made available to developers subject to this chapter. SECTION 7: That Section 21.85.100 of the Carlsbad Municipal Code is amended to read as follows: 21.85.100 Offsets to the cost of affordable housing development. The city shall consider making offsets available to developers when necessary to enable residential projects to provide a preferable product type or affordability in excess of the requirements of this chapter. Offsets will be offered by the city to the extent that resources and programs for this purpose are available to the city and approved for such use by the city council, and to the extent that the residential development, with the use of offsets, assists in achieving the city's housing goals. To the degree that the city makes available programs to provide offsets, developers may make application for such programs. Evaluation of requests for offsets shall be based on the effectiveness of the offsets in achieving a preferable product type and/or affordability objectives as set forth within the housing element; the capability of the development team; the reasonableness of development costs and justification of subsidy needs; and the extent to which other resources are used to leverage the requested offsets. Nothing in this chapter establishes, directly or through implication, a right to receive any offsets from the city or any other party or agency to enable the developer to meet the obligations established by this chapter. Any offsets approved by the city council and the housing affordability to be achieved by use of those offsets shall be set out within the affordable housing agreement pursuant to Section 21.85.140 or, at the city's discretion in a subsequent document. Furthermore, developers are encouraged to utilize local, state or federal assistance, when available, to meet the affordability standards set forth in Sections 21.85.030 and 21.85.040. SECTION 8: That Section 21.85.130.B of the Carlsbad Municipal Code is amended to read as follows: B. Within thirty days of receipt of the preliminary application by the planning director for projects not requesting offsets or inclusionary credit adjustments, or ninety days for projects requesting offsets or inclusionary credit adjustments the department shall provide to an applicant, a letter which identifies project issues of concern, the offsets and inclusionary credit adjustments that the community development director can support when making a recommendation to the final decision-making authority, and the procedures for compliance with this chapter. The applicant shall also be provided with a copy of this chapter and related policies, the pertinent sections of the California codes to which reference is made in this chapter and all required application forms. SECTION 9: That Section 21.85.140.A of the Carlsbad Municipal Code is amended to read as follows: A. Developers subject to this chapter shall demonstrate compliance with this chapter by executing an affordable housing agreement prepared by the city housing and redevelopment director and submitted to the developer for execution. Agreements which conform to the requirements of this section and which do not involve requests for offsets and/or an inclusionary credit, other than those permitted by right, if any, shall be reviewed by the affordable housing policy team and approved by the community development director or his designee. Agreements which involve requests for offsets andlor an inclusionary credit, other than those permitted by right, shall require the recommendation of the housing commission and action by the city council as the final decision-maker. Following the approval and execution by all parties, the affordable housing agreement with approved site development plan shall be recorded against the entire development, including market-rate lots/units and the relevant terms and conditions therefrom filed and subsequently recorded as a separate deed restriction or regulatory agreement on the affordable project individual lots or units of property which are designated for the location of affordable units. The approval and execution of the affordable housing agreement shall take place prior to final map approval and shall be recorded upon final map recordation or, where a map is not being processed, prior to the issuance of building permits for such lots/units. The affordable housing agreement may require that more specific project and/or unit restrictions be recorded at a future time. The affordable housing agreement shall bind all future owners and successors in interest for the term of years specified therein. SECTION 10: That Section 21.85.140.B. 1 of the Carlsbad Municipal Code is amended to read as follows: 1. The number of inclusionary dwelling units proposed, with specific calculations detailing the application of any inclusionary credit adjustment; SECTION 11: That Chapter 21.86 of the Carlsbad Municipal Code is amended to read as follows: Chapter 21.86 RESIDENTIAL DENSITY BONUS AND INCENTIVES OR CONCESSIONS Sections: 21.86.010 Purpose and intent. 21.86.020 Definitions. 21.86.030 lnclusionary housing. 21.86.040 Density bonus for housing developments. 21.86.050 Incentives and concessions for housing developments. 21.86.060 Waiver or reduction of development standards. 21.86.070 Density bonus and incentives for condominium conversions. 21.86.080 Housing developments with child day care centers. 21.86.090 Density bonus housing standards. 21.86.1 00 Affordability tenure. 21.86.1 10 Application process. 21.86.120 Findings for approval. 21.86.130 Density bonus housing agreement. 21.86.140 Agreement processing fee. 21.86.150 Separability of provisions. 21.86.010 Purpose and intent. A. The public good is served when there exists in a city, housing which is appropriate for the needs of and affordable to all members of the public who reside within that city. Among other needs, there is in Carlsbad a need for housing affordable to lower-income households and senior citizens. Therefore, it is in the public interest for the city to promote the construction of such additional housing through the exercise of its powers and the utilization of its resources. B. It is the purpose of this chapter to provide a means for granting density bonuses, and incentives or concessions to developers for the production of housing affordable to lower and moderate-income households, and senior citizens. C. It is the purpose of this chapter to implement the goals, objectives, and policies of the housing element of the city's general plan. D. It is the purpose of this chapter to implement Sections 65915 through 65917 of the California Government Code. E. Nothing in this chapter is intended to create a mandatory duty on behalf of the city or its employees under the Government Tort Claims Act and no cause of action against the city or its employees is created by this chapter that would not arise independently of the provisions of this chapter. F. Nothing in this chapter shall be construed to supersede or in any way alter or lessen the effect or application of the California Coastal Act. 21.86.020 Definitions. A. Whenever the following terms are used in this chapter, they shall have the meaning established by this section: 1. "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, as follows: a. Extremely low-income, rental and for-sale units: the product of 30% times 30% of the county median income, adjusted for household size. b. Very low-income, rental and for-sale units: the product of 30% times 50% of the county median income, adjusted for household size. c. Low-income, rental units: the product of 30% times 60% of the county median income, adjusted for household size. d. Low-income, for-sale units: the product of 30% times 70% of the county median income, adjusted for household size. e. Moderate-income, for-sale units: allowable housing expenses shall not be less than 28% of the gross income of the household, nor exceed the product of 35% times 110% of the county median income, adjusted for household size. 2. "Allowable housing expense" means the total monthly or annual recurring expenses required of a household to obtain shelter. For a for-sale unit, allowable housing expenses include loan principal and interest at the time of initial purchase by the homebuyer, allowances for property and mortgage insurance, property taxes, homeowners association dues and a reasonable allowance for utilities as defined by the Code of Federal Regulations (24CFR982). For a rental unit, allowable housing expenses include rent and a utility allowance as established and adopted by the city of Carlsbad housing authority, as well as all monthly payments made by the tenant to the lessor in connection with use and occupancy of a housing unit and land and facilities associated therewith, including any separately charged fees, utility charges, or service charges assessed by the lessor and payable by the tenant. 3. "Child day care center" shall have the same meaning as defined in Section 21.83.020.D of this title. 4. "Common interest development" means any of the following (as defined in Section 1351 of the California Civil Code): a. A community apartment project. b. A condominium project. c. A planned development. d. A stock cooperative. 5. "Conversion" means the change of occupancy of a dwelling unit from owner- occupied to rental or vice versa. 6. "Density bonus" means an increase over the maximum allowable residential density as specified by the land use element of the general plan in effect at the time of application submittal. 7. "Density bonus dwelling units" means those residential units granted pursuant to the provisions of this chapter, which are above the maximum allowable residential density of the project site. 8. "Density bonus housing agreement" means a legally binding agreement between a developer and the city to ensure that the density bonus requirements of this chapter are satisfied. The agreement establishes, among other things, the number of target dwelling units and density bonus dwelling units, the unit sizes, location, affordability tenure, terms and conditions of affordability and unit production schedule. 9. "Development standard" means site or construction conditions/requirements that apply to a housing development pursuant to any ordinance, general plan element, master or specific plan, or other city requirement, law, policy, resolution or regulation. 10. "Extremely low-income household" means those households whose gross income is equal to or less than 30% of the median income for San Diego County as determined annually by the U.S. Department of Housing and Urban Development. 11. "Housing development" means one or more groups of projects for residential units, consisting of the following: a. The construction of 5 or more residential units; or b. A subdivision or common interest development consisting of 5 or more residential units or unimproved lots; or c. A project to either substantially rehabilitate and convert an existing commercial building to residential use, or substantially rehabilitate an existing two-family or multiple-family dwelling structure(s), where the result of rehabilitation would be a net increase in available residential units. 12. "Incentives or concessions" means such regulatory incentives or concessions as stipulated in State Government Code Section 65915(1), to include, but not be limited to, the reduction of site development standards or zone code requirements, approval of mixed use zoning in conjunction with the housing project, or any other regulatory incentive which would result in identifiable, financially sufficient, and actual cost reductions to enable the provision of housing affordable to the designated income group or qualified (senior) resident. 13. "Income" means any monetary benefits that qualify as income in accordance with the criteria and procedures used by the city of Carlsbad housing and redevelopment department for the acceptance of applications and recertifications for the Tenant Based Rental Assistance Program, or its successor. 14. "Low-income household" means those households whose gross income is more than 50% but does not exceed 80% of the median income for San Diego County as determined annually by the U.S. Department of Housing and Urban Development. 15. "Lower-income household" means low-income, very low-income and extremely low-income households, whose gross income does not exceed 80% of the median income for San Diego County as determined annually by the U.S. Department of Housing and Urban Development. 16. "Market-rate unit" means a dwelling unit where the rental rate or sales price is not restricted either by this chapter or by requirements imposed through other local, state, or federal affordable housing programs. 17. "Maximum allowable residential density" means the maximum density of the density range allowed by the residential general plan designation(s) applicable to a project site. 18. "Moderate-income household" means those households whose gross income is more than 80% but does not exceed 120% of the median income for San Diego County as determined annually by the U.S. Department of Housing and Urban Development. 19. "Qualifying resident" means a resident as defined in Chapter 21.84 of this title and Section 51.2 of the California Civil Code. 20. "Target dwelling unit" means a dwelling unit that will be offered for rent or sale exclusively to and which shall be affordable to the designated income group or qualified (senior) resident, as required by this chapter. 21. "Total units" means the number of dwelling units in a housing development, excluding the density bonus dwelling units. 22. "Very low-income household" means a household earning a gross income equal to 50% or less of the median income for San Diego County as determined annually by the U.S. Department of Housing and Urban Development. 21.86.030 lnclusionary housing. A. All housing development projects are required to provide affordable housing units in accordance with chapter 21.85 (Inclusionary Housing). If an applicant seeks to construct affordable housing to qualify for a density bonus in accordance with the provisions of this chapter, those affordable dwelling units that qualify a housing development for a density bonus are in addition to, and do not count toward satisfying the lnclusionary Housing requirements of chapter 21.85. 21.86.040 Density bonus for housing developments. A. The decision-making body shall grant one density bonus, as specified in Section 21.86.040.B, and incentives or concessions, as set forth in Section 21.86.050, when an applicant of a housing development of at least 5 units seeks and agrees to construct at least any one of the following: 1. A minimum of 10% of the total units of the housing development as restricted and affordable to lower-income households; or 2. A minimum of 5% of the total units of the housing development as restricted and affordable to very low-income households; or 3. A senior citizen housing development as defined in Section 21.84.030.A.7 of this title and Section 51.3 of the California Civil Code, or mobilehome park that limits residency based on age requirements for housing for older persons pursuant to Section 798.76 or 799.5 of the California Civil Code; or 4. A minimum of 10% of the total units in a common interest development restricted and affordable to moderate-income households, provided that all units in the development are offered to the public for purchase. B. When an applicant seeks and agrees to construct a housing development meeting the criteria specified in Section 21.86.040.A, the decision-making body shall grant a density bonus subject to the following: 1. The amount of density bonus to which a housing development is entitled shall vary according to the amount by which the percentage of affordable housing units exceeds the percentages established in Section 21.86.040.A, as follows: a. For housing developments meeting the criteria of Section 21.86.040.A.1, the density bonus shall be calculated as follows: TABLE A DENSITY BONUS FOR HOUSING DEVELOPMENTS WlTH UNITS AFFORDABLE TO LOW- INCOME HOUSEHOLDS Percentage of Low-Income Units (Minimum 10% required) 10 11 12 13 14 15 16 17 18 19 20 Percentage of Density Bonus to be Granted (Additional 1.5% density bonus for each 1 % increase above the 10% minimum) 20 21.5 23 24.5 26 27.5 29 30.5 32 33.5 35 b. For housing developments meeting the criteria of Section 21.86.040.A.2, the density bonus shall be calculated as follows: TABLE B DENSITY BONUS FOR HOUSING DEVELOPMENTS WlTH UNITS AFFORDABLE TO VERY LOW-INCOME HOUSEHOLDS Percentage of Very Low-Income Units 5 6 7 8 Percentage of Density Bonus to be Granted 20 22.5 25 27.5 -9- c. For housing developments meeting the criteria of Section 21.86.040.A.3, the density bonus shall be 20%. d. For housing developments meeting the criteria of Section 21.86.040.A.4, the density bonus shall be calculated as follows: TABLE C DENSITY BONUS FOR COMMON INTEREST DEVELOPMENTS WITH UNITS AFFORDABLE 2. The amount of density bonus to which a housing development is entitled shall not exceed 35%. 3. The applicant may elect to accept a lesser percentage of density bonus than specified in Section 21.86.040.8. 4. If a housing development includes a combination of target dwelling unit types that meet two or more of the criteria specified in Section 21 .86.040.A, the applicant shall elect one applicable density bonus. TO MODERATE-INCOME HOUSEHOLDS Percentage of Moderate-Income Units 10 11 12 13 14 15 16 17 18 19 20 2 1 22 23 Percentage of Density Bonus to be Granted 5 6 7 8 9 10 11 12 13 14 15 16 17 18 C. When an applicant for a tentative subdivision map, parcel map, or other housing development approval donates land to the city, as provided for in this subsection, the applicant shall be entitled to a density bonus for the entire development, as follows: TABLE D DENSITY BONUS Percentage of Very Low-Income Units 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 FOR LAND DONATION Percentage of Density Bonus to be Granted 15 16 17 18 19 20 2 1 22 23 24 25 26 27 28 29 30 3 1 32 33 34 35 1. A density bonus granted pursuant to this subsection shall not exceed 35%. 2. If an applicant seeks both the density bonus required pursuant to this subsection and Section 21 .86.040.A, both density bonuses shall be granted up to a maximum combined density bonus of 35%. 3. An applicant shall be eligible for the density bonus described in this subsection only if all of the following conditions are met: a. The land is donated and transferred to the city no later than the date of approval of the final subdivision map, parcel map, or housing development application, b. The developable acreage, zoning classification and general plan land use designation of the land being donated are sufficient to permit construction of the units affordable to very low-income households in an amount not less than 10% 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 zoning classification and general plan land use designation, and is or will be served by adequate public facilities and infrastructure, d. The land shall have appropriate zoning and development standards to make the development of the affordable units feasible, e. No later than the date of approval of the final subdivision map, parcel map, or housing development, 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, except that the city may subject the proposed development to subsequent design review to the extent authorized by subdivision (i) of Section 65583.2 of the California Government Code if the design is not reviewed by the city prior to the time of transfer. f. The transferred land and the affordable units shall be subject to a deed restriction ensuring continued affordability of the units consistent with Section 21.86.100, which shall be recorded on the property at the time of dedication. g. The land is transferred to the city or to a housing developer approved by the city. The city may require the applicant to identify and transfer the land to the developer. h. The transferred land shall be within the boundary of the proposed development or, if the city agrees, within one-quarter mile of the boundary of the proposed development. F. In cases where an applicant requests a density bonus of more than what is specified in this section, the city council may grant the requested additional density bonus, subject to the following: I. The project meets the requirements of this chapter. 2. The additional density bonus shall be considered an incentive, in accordance with Section 21.86.050 of this chapter. 3. The city council may require some portion of the additional density bonus units to be designated as target dwelling units. G. The city council may grant a proportionately lower density bonus than what is specified by this section for developments that do not meet the requirements of this chapter. H. The density bonus dwelling units granted pursuant to this chapter shall not be included when determining the number of housing units required by this chapter to be reserved for income restricted households. I. When calculating the density bonus, or the required number of target dwelling units, any calculations resulting in fractional units shall be rounded up to the next whole unit. J. For the purposes of calculating a density bonus, the residential units in a housing development do not have to be based upon individual subdivision maps or parcels. K. The density bonus units shall be permitted in geographic areas of the housing development other than the areas where the units for lower-income households are located. L. A density bonus housing agreement shall be made a condition of the discretionary permits (i.e., tentative maps, parcel maps, planned unit developments, condominium permits, site development plans and redevelopment permits) for all housing developments that request a density bonus and incentives or concessions. The relevant terms and conditions of the density bonus housing agreement shall be filed and recorded as a deed restriction on those individual lots or units of a project development which are designated for the location of target dwelling units. The density bonus housing agreement shall be consistent with Section 21.86.130 of this chapter. 21.86.050 Incentives and concessions for housing developments. A. When an applicant requests a density bonus pursuant to Section 21.86.040.A, the decision-making body shall grant incentives or concessions, subject to the following: 1. An applicant shall submit a proposal for any specific incentives or concessions requested pursuant to this section. 2. The decision-making body shall grant the incentive(s) or concession(s) requested by the applicant unless, based upon substantial evidence, either of the following findings are made in writing: a. The incentive or concession is not required in order to provide for affordable housing as defined in Section 21.86.020.A.l. b. The incentive or concession would have a specific adverse impact upon public health and safety or the physical environment, 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. As used in this paragraph, and as defined in paragraph (2) of subdivision (d) of Section 65589.5 of the California Government Code, a "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. 3. The applicant shall receive the following number of incentives or concessions: a. One incentive or concession for projects that include at least 10% of the total units for lower-income households, at least 5% for very low-income households, or at least 10% for persons and families of moderate-income in a common interest development. b. Two incentives or concessions for projects that include at least 20% of the total units for lower-income households, at least 10% for very low-income households, or at least 20% for persons and families of moderate-income in a common interest development. c. Three incentives or concessions for projects that include at least 30% of the total units for lower-income households, at least 15% for very low-income households, or at least 30% for persons and families of moderate-income in a common interest development. 4. An incentive or concession may include any of the following: a. A reduction in site development standards or a modification of zoning code or architectural design requirements (excluding State Building Standards), that results in identifiable, financially sufficient, and actual cost reductions. A reduction/modification to standards or requirements may include, but is not limited to, a reduction in minimum lot size, setback requirements, and/or in the ratio of vehicular parking spaces that would otherwise be required. b. Approval of mixed use zoning in conjunction with the housing development if i) commercial, office, industrial, or other land uses will reduce the cost of the housing development; and ii) the commercial, office, industrial, or other land uses are compatible with the housing development and the existing or planned future development in the area where the proposed project will be located. c. Other regulatory incentives or concessions that result in identifiable, financially sufficient, and actual cost reductions. d. The city council may, but is not required to, provide direct financial incentives, including the provision of publicly owned land, or the waiver of fees or dedication requirements. 5. The applicant shall show that the requested incentive(s) or concession(s) will result in identifiable, financially sufficient, and actual cost reductions. 21.86.060 Waiver or reduction of development standards. A. In addition to the incentives or concessions permitted by Section 21.86.050, an applicant may seek a waiver or reduction of development standards that will have the effect of precluding the construction of a housing development meeting the criteria of Section 21.86.040.A at the densities or with the incentives or concessions permitted by this Chapter. 1. The applicant shall show that the requested waiver or reduction of development standards is necessary to make the housing units economically feasible. 2. The applicant shall provide evidence that the development standard(s) requested to be waived or reduced will have the effect of precluding the construction of a housing development at the densities or with the incentives or concessions permitted by this Chapter; and B. The decision-making body shall grant the requested waiver or reduction of development standards, unless, based upon substantial evidence, any of the following findings are made in writing: 1. The waiver or reduction of development standards is not necessary to make the housing units economically feasible. 2. The development standard(s) requested to be waived or reduced will not have the effect of precluding the construction of a housing development at the densities or with the incentives or concessions permitted by this Chapter. 3. The requested waiver or reduction of development standards would have a specific adverse impact upon public health and safety or the physical environment, 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. As used in this subsection, and as defined in paragraph (2) of subdivision (d) of Section 65589.5 of the California Government Code, a "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. 21 .86.070 Density bonus and incentives for condominium conversions. A. When an applicant proposes to convert apartments to condominiums, the decision-making body shall grant either a density bonus or other incentives of equivalent financial value, as set forth in Section 21.86.050.A., if the applicant agrees to provide the following: 1. A minimum of 33% of the total units of the proposed condominium conversion project as restricted and affordable to low-income or moderate-income households; or 2. A minimum of 15% of the total units of the proposed condominium conversion project as restricted and affordable to lower-income households. B. For purposes of this section "density bonus" means an increase in units of 25% 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 monetary compensation, but may include the waiver or reduction of requirements that might otherwise apply to the proposed condominium conversion project. D. The density bonus dwelling units shall not be included when determining the number of housing units required to be reserved for income restricted households. E. When calculating the density bonus, or the required number of target dwelling units, any calculations resulting in fractional units shall be rounded up to the next whole unit. F. Nothing in this section shall be construed to require that the city approve a proposal to convert apartments to condominiums. G. An applicantldeveloper proposing to convert apartments to condominiums 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 Sections 21 .86.040 and 21 .86.050. H. A density bonus housing agreement shall be made a condition of the discretionary permits (tentative maps, parcel maps, planned unit developments and condominium permits) for all condominium conversion proposals that request a density bonus or other incentives. The relevant terms and conditions of the density bonus housing agreement shall be filed and recorded as a deed restriction on those individual lots or units of a project development which are designated for the location of target dwelling units. The density bonus housing agreement shall be consistent with Section 21 .86.1 30 of this chapter. 21 .86.080 Housing developments with child day care centers. A. When an applicant proposes to construct a housing development that conforms to the requirements of Section 21.86.040.A, and includes a child day care center that will be located on the premises of, as part of, or adjacent to, the project, the following provisions shall apply: 1. The decision-making body 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 child day care center; or b. An additional incentive or concession that contributes significantly to the economic feasibility of the construction of the child day care center. 2. The decision-making body shall require, as a condition of approval of the housing development, that the following occur: a. The child day care center shall remain in operation for a period of time that is as long as or longer than the period of time during which the target dwelling units are required to remain affordable, pursuant to Section 21.86.100; and b. Of the children who attend the child day care center, the children of very low-, lower-, 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-, lower-, or moderate-income households pursuant to Section 21.86.040.A. 3. Notwithstanding any requirement of this section, the decision-making body shall not be required to provide an additional density bonus, incentive or concession for a child day care center if it finds, based on substantial evidence, that the community has an adequate number of child day care centers. 21.86.090 Density bonus housing standards. A. Required target dwelling units shall be constructed concurrent with market rate dwelling units unless both the final decision-making authority of the city and the developerlapplicant agree within the density bonus housing agreement to an alternative schedule for development. B. Whenever feasible, target dwelling units and density bonus dwelling units should be built on-site (within the boundary of the proposed development) and, whenever reasonably possible, be distributed throughout the project site. C. Whenever feasible, target dwelling units should be located on sites that are in proximity to, or will provide access to, employment opportunities, urban services, or major roads or other transportation and commuter rail facilities (i.e., freeways, bus lines) and that are compatible with adjacent land uses. D. Whenever feasible, target dwelling units should vary in size and number of bedrooms, in response to affordable housing demand priorities of the city. E. Density bonus projects shall comply with all applicable development standards, except those which may be modified as an incentive or concession, or as otherwise provided for in this chapter. In addition, all units must conform to the requirements of the applicable building and housing codes. The design of the target dwelling units shall be reasonably consistent or compatible with the design of the total project development in terms of appearance, materials and finished quality. F. No building permit shall be issued, nor any development approval granted, for a development which does not meet the requirements of this chapter. No target dwelling unit shall be rented or sold except in accordance with this chapter. G. Upon the request of the applicant, the parking ratio (inclusive of handicap and guest parking) for a housing development that conforms to the requirements of Section 21.86.040.A shall not exceed the ratios specified in Table El below. If the applicant does not request the parking ratios specified in Table E or the project does not conform to the requirements of Section 21.86.040.A, the parking standards specified in Chapter 21.44 shall apply. 1. 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. 2. For purposes of this section, a housing development may provide "on-site" parking through tandem parking or uncovered parking, but not through on-street parking. 3. The applicant may request additional parking incentives or concessions beyond those provided in this section, subject to the findings specified in Section 21.86.050.A.2. TABLE E PARKING RATIO FOR HOUSING DEVELOPMENTS Dwelling Unit Size 0-1 bedrooms 2-3 bedrooms On-Site Parking Ratio 1 space per unit 2 spaces per unit -15- 4 or more bedrooms 2.5 spaces per unit 21.86.100 Affordability tenure. A. All low- and very low-income dwelling units that qualified the housing project for a density bonus shall remain restricted and affordable to the designated group for a period of at least 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. B. All moderate-income dwelling units directly related to the receipt of a density bonus for a common interest development shall be subject to the following: 1. The initial occupant(s) of the target dwelling unit(s) shall be persons and families of moderate-income, and the units shall be offered at an affordable housing cost that does not exceed the allowable housing expenses for a moderate-income household. 2. Unless in conflict with the requirements of another public funding source or law, the target dwelling unit(s) shall be subject to an equity sharing agreement that specifies: a. 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. b. Upon resale, the city shall recapture any initial subsidy and its proportionate share of appreciation, which shall then be used within 3 years for any of the purposes described in subdivision (e) of Section 33334.2 of the Health and Safety Code that promote homeownership. I. For the purposes of this subsection, 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 to the moderate-income household, 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. ii. For the purposes of this subsection, 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. 3. If the city provides a direct financial contribution to a common interest development through participation in cost of infrastructure, write-down of land costs, or subsidizing the cost of construction, the target dwelling unit(s) shall remain affordable to the designated income group for at least 30 years. C. For rental projects, the city or its designee shall have a one-time first right of refusal to purchase any project containing affordable units offered for sale at the end of the minimum tenure of affordability. The first right of refusal to purchase the rental project shall be submitted in writing to the housing and redevelopment director. Within 90 days of its receipt, the city shall indicate its intent to exercise the first right of refusal for the purpose of providing affordable housing. 21.86.1 10 Application process. A. The granting of a density bonus, incentive or concession, pursuant to this chapter, shall not be interpreted, in and of itself, to require a general plan amendment, zone code amendment, local coastal plan amendment, zone change, or other discretionary approval. B. Preliminary Application. A preliminary application may be submitted prior to the submittal of any formal development application for a housing project that includes a request for a density bonus, incentive(s) or concession(s). The preliminary application should include the following information: 1. A brief description of the proposal including the number of target dwelling units and density bonus units proposed; 2. The zoning, general plan designations and assessors parcel number(s) of the project site; 3. A site plan, drawn to scale, which includes: building footprints, driveway and parking layout, existing contours and proposed grading; and -16- 4. A letter identifying what specific density bonus, incentives or concessions (e.g., standards modifications, additional density bonus, or fee waiver, etc.) are being requested of the city. 5. The planning department shall provide to an applicantldeveloper, a letter that identifies project issues of concern and the procedures for compliance with this chapter. C. Formal application. A request for a density bonus, incentive(s) or concession(s), pursuant to this chapter, does not require a discretionary approval. The request shall be processed as part of the development applications for a housing development, as otherwise required in other sections of this code (e.g., site development plan, tentative map, parcel map, planned unit development, conditional use permit, redevelopment permit, etc.). 1. If the project involves a request for direct financial incentives from the city, then any action by the planning commission on the application shall be advisory only, and the city council shall have the authority to make the final decision on any discretionary permits related to the project. 2. The following information shall be included with the development application(s) required for the project: a. A legal description of the total site proposed for development of the target dwelling units including a statement of present ownership and present and proposed zoning; b. A letter signed by the present owner stating what specific density bonus, incentives, or concessions (e.g., standards modifications, additional density bonus, or fee waiver, etc.) are being requested from the city; c. 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; d. Site plans, designating 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; e. In the case of a request for any incentive(s) or concession(s), a pro forma for the proposed project to justify the request, in accordance with the provisions of section 21.86.050; f. In the case of a request for a waiver or reduction of development standards, pursuant to section 21.86.060, a pro forma for the proposed project showing that the waiver or reduction is necessary to make the housing units economically feasible, and evidence that the development standard being waived or reduced will have the effect of precluding the construction of the development at the densities or with the concessions or incentives permitted by this chapter. g. In the case of a condominium conversion request, a report documenting the following information for each unit proposed to be converted: i. the monthly income of tenants of each unit throughout the prior year, and ii. ... the monthly rent for each unit throughout the prior year, and 111. vacancy information for each unit throughout the prior year. 21.86.120 Findings for approval. A. When a project involves a request for a density bonus, incentive(s) or concession(s), the following findings shall be made as part of the approval of the development application(s) required for the project: 1. The project is consistent with the provisions of this chapter. 2. The requested incentive(s) or concession(s) will result in identifiable, financially sufficient, and actual cost reductions; 3. In cases where an applicant requests a waiver or reduction of development standards, pursuant to section 21.86.060, the requested waiver or reduction of development standard(s) is necessary to make the housing units economically feasible. 4. The requested incentive(s) or concession(s), and/or waiver(s) or reduction(s) of development standards, if any, will not result in an adverse impact, as defined in paragraph (2) of subdivision (d) of Section 65589.5 of the California Government Code, to the public health and safety, the environment, or on any real property that is listed in the California Register of Historical Resources; or, if the request will result in an adverse impact, then the request may be approved if the following finding is made: a. There is no feasible method to satisfactorily mitigate or avoid the specific adverse impact. 5. In cases where an applicant requests to convert apartment units to condominiums, the condominium conversion project shall not result in a reduction in the affordable housing stock for lower-income groups, as of most recent inventory. 21.86.130 Density bonus housing agreement. A. Applicants/developers, requesting a density bonus, incentives or concessions pursuant to this chapter, shall demonstrate compliance with this chapter by executing a density bonus housing agreement prepared by the city housing and redevelopment director and submitted to the developer for signature. B. Density bonus housing agreements for projects involving a request for direct financial incentives from the city shall be subject to city council approval; otherwise, the agreement shall be subject to the approval of the community development director. C. Following the approval and the signing by all parties, the completed density bonus housing agreement, with approved site development plan, shall be recorded against the entire development, including market-rate lotslunits; and the relevant terms and conditions therefrom filed and recorded as a deed restriction or regulatory agreement on those individual lots or units of a property which are designated for the location of target dwelling units. D. The approval and signing by all parties of the density bonus housing agreement shall take place prior to final map approval, and the agreement shall be recorded concurrent with the final map recordation or, where a map is not being processed, prior to issuance of building permits for such lots or units. E. The density bonus housing agreement shall be binding to all future owners and successors in interest. F. A density bonus housing agreement for a housing development or condominium conversion project processed pursuant to this chapter shall include, but not be limited to, the following: 1. The number of density bonus dwelling units granted; 2. The number and type (e.g., restricted to lower- or moderate-income households) of target dwelling units proposed; 3. The unit size@) (square footage) of target dwelling units and the number of bedrooms per target dwelling unit; 4. The proposed location of the target dwelling units; 5. Schedule for production of target dwelling units; 6. Incentives or concessions provided by the city; 7. Where applicable, tenure and conditions governing the initial sale of for-sale target units; and 8. Where applicable, tenure and conditions establishing rules and procedures for qualifying tenants, setting rental rates, filling vacancies, and operating and maintaining units for rental target dwelling units. 9. Where applicable, requirements for other documents to be approved by the city, such as marketing, leasing and management plans; financial assistancelloan documents; resale agreements; and monitoring and compliance plans. 21.86.140 Agreement processing fee. A. The city council may establish by resolution, fees to be paid by the applicant to defray the city's cost of preparing and/or reviewing all density bonus housing agreements. 21.86.150 Separability of provisions. A. If any provision of this chapter or the application thereof to any person or circumstances is held invalid, the remainder of the chapter and the application of the provision to other persons not similarly situated or to other circumstances shall not be affected thereby. SECTION 12: That the findings of the Planning Commission as set forth in Planning Commission Resolution No. 5879 constitute the findings of the City Council. //I //I //I /I/ 111 //I //I //I /I/ //I //I /I/ //I //I //I //I //I I// //I 111 //I //I EFFECTIVE DATE: This ordinance shall become effective thirty (30) days after its adoption, and the City Clerk shall certify to the adoption of this ordinance and cause it to be published at least once in a publication of general circulation in the City of Carlsbad within fifteen days after its adoption. (Not withstanding the preceding, this ordinance shall not become effective within the City's Coastal Zone until LCPA 04-17 is approved by the California Coastal Commission.) INTRODUCED AND FIRST READ at a regular meeting of the Carlsbad City Council on the day of March 2006, and thereafter. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Carlsbad on the 28th day of March 2006, by the following vote, to wit: AYES: Council Members Lewis, Kulchin, Packard, Sigafoose NOES: None ABSENT: Council Member Hall ABSTAIN: None APPROVED AS TO FORM AND LEGALITY ATTEST: