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HomeMy WebLinkAbout2015-07-28; City Council; CS-280; City's Regulation of Density Bonuses Consistent with State Law...1 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 EXHIBIT 1 ORDINANCE NO. CS-280 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AMENDING TITLE 21 OF THE CARLSBAD MUNICIPAL CODE TO MAKE THE CITY'S REGULATION OF DENSITY BONUSES CONSISTENT WITH STATE LAW. CASENAME: DENSITY BONUS AMENDMENT CASE NO.: ZCA 14-02/LCPA 14-04 The City Council of the City of Carlsbad, California, does ordain as follows: SECTION 1: That Section 21.86.040.K of the Carlsbad Municipal Code is added to read as follows: K. An applicant shall be ineligible for a density bonus or any other incentives or concessions under this chapter if the housing development is proposed on any property that includes a parcel or parcels on which rental dwelling units are or, if rental dwelling units have been vacated or demolished in the five-year period preceding the application, have been subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of lower- or very low-income; subject to any other form of rent or price control through the city's valid exercise of its police power; oroccupied by lower- or very low-income households, unless the proposed housing development replaces those units, and either ofthe following applies: 1. The proposed housing development, inclusive of the units replaced pursuant to this subsection, contains affordable units at the percentages set forth in Section 21.86.040 of this chapter. 2. Each unit in the development, exclusive of a manager's unit or units, is affordable to and occupied by either a lower- or very low-income household. Forthe purposes of this subsection, "replaces" shall mean either of the following: i. If any rental dwelling unit(s) is occupied on the date of application, the proposed housing development shall provide at least the same number of units of equivalent size or type, or both, to be made available at affordable rent or affordable housing cost to, and occupied by, persons and families in the same or lower income category as those households in occupancy. For unoccupied dwelling units in a development with occupied units, the proposed housing development shall provide units of equivalent size or type, or both, to be made available at affordable rent or affordable housing cost to, and occupied by, persons and families in the same or lower income category in the same proportion of affordability as the occupied units. The replacement units shall be subject to the affordability tenure requirements specified in Section 21.86.100. 4 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 ii. If all rental dwelling units have been vacated or demolished within the five-year period preceding the application, the proposed housing development shall provide at least the same number of units of equivalent size ortype, or both, as existed at the highpoint of those units (in the five-year period preceding the application). The replacement units shall be provided at an affordable rent or affordable housing cost to, and occupied by, persons and families in the same or lower income category as those persons and families in occupancy at the highpoint, if known. If the incomes ofthe persons and families in occupancy at the highpoint is not known, then one-half ofthe required units shall be made available at affordable rent or affordable housing cost to, and occupied by, very low-income persons and families and one-half of the required units shall be made available for rent at affordable housing costs to, and occupied by, low-income persons and families. The replacement units shall be subject to the affordability tenure requirements specified in Section 21.86.100. SECTION 2: That Section 21.86.050.A of the Carlsbad Municipal Code is amended to read as follows: A. When an applicant requests a density bonus pursuant to Section 21.86.040(A) of this chapter, 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, any 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)(1) of this chapter. 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 without rendering the development unaffordable to low- and moderate-income households. 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. c. The incentive or concession would be contrary to state or federal law. 3. The applicant shall receive the following number of incentives or concessions: 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 a. One incentive or concession for projects that include at least ten percent of the total units for lower-income households, at least five percent for very low-income households, or at least ten percent for persons and families of moderate income in a common interest development. b. • Two incentives or concessions for projects that include at least twenty percent ofthe total units for lower-income households, at least ten percent for very low-income households, or at least twenty percent for persons and families of moderate income in a common interest development. c. Three incentives or concessions for projects that include at least thirty percent ofthe total units for lower-income households, at least fifteen percent for very low-income households, or at least thirty percent for persons and families of moderate income in a 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. SECTION 3: That Section 21.86.070.1 of the Carlsbad Municipal Code is added to read as follows: I. An applicant shall be ineligible for a density bonus or any other incentives or concessions under this chapter if the condominium project is proposed on any property that includes a parcel or parcels on which rental dwelling units are or, if rental dwelling units have been vacated or demolished in the five-year period preceding the application. -3- 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 have been subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of lower or very low income; subject to any other form of rent or price control through the city's valid exercise of its police power; or occupied by lower- or very low-income households, unless the proposed condominium project replaces those units, as defined in Section 21.86.040.K.3 of this chapter, and either of the following applies: 1. The proposed condominium project, inclusive ofthe units replaced pursuant to Section 21.86.040.K.3 of this chapter, contains affordable units at the percentages set forth in Section 21.86.070.A. 2. Each unit in the development, exclusive of a manager's unit or units, is affordable to, and occupied by, either a lower or very low income household. SECTION 4: That Section 21.86.100 of the Carlsbad Municipal Code is amended to read as follows: 21.86.100 Affordability tenure. A. All low- and very low-income rental 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 fifty-five years, or a longer period of time if required by the construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy program. Rents for the target dwelling unit(s) shall be set at an affordable rent as defined in Section 50053 ofthe Health and Safety Code. B. All very low-, low- and moderate-income for-sale dwelling units that qualified the housing project for a density bonus shall be subject to the following: 1. The initial occupant(s) ofthe target dwelling unit(s) shall be persons and families of very low, low or moderate income, as required, and the units shall be offered at an affordable housing cost as defined in Section 50052.5 ofthe Health and Safety Code. 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 ofthe 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 five 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 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 the initial sale price to the moderate-income household, plus the amount of any downpayment 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 ofthe city's initial subsidy to the fair market value ofthe home at the time of initial sale. 3. If the city provides a direct financial contribution to the housing 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 thirty 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 neighborhood services director. Within ninety days of its receipt, the city shall indicate its intent to exercise the first right of refusal for the purpose of providing affordable housing. SECTION 5: That Section 21.86.110.A of the Carlsbad Municipal Code is amended to read as follows: 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, other discretionary approval, or the waiver of a city ordinance or provisions of a city ordinance unrelated to development standards. EFFECTIVE DATE: This ordinance shall be effective thirty days after its adoption; and the city clerk shall certify the adoption of this ordinance and cause the full text ofthe ordinance or a summary ofthe ordinance prepared bythe City Attorney to be published at least once in a newspaper of general circulation in the City of Carlsbad within fifteen days after its adoption. (Notwithstanding the preceding, this ordinance shall not be effective until approved by the California Coastal Commission.) INTRODUCED AND FIRST READ at a regular meeting of the Carlsbad City Council on the 14tb day of July _, 2015, and thereafter. DONNA HERATY, Deputy City CERTIFICATION OF POSTING AND PUBLICATION OF ORDINANCE NO. CS-280 Section 36933 (c) of the Government Code provides that a summary of an Ordinance may be published in lieu of the full text, providing the summary is published and a certified copy of the full text is posted in the Office of the City Clerk at least five days prior to the Council Meeting at which the Ordinance is adopted. Section 36933 (c) also requires that, within 15 days of the adoption of the Ordinance, a summary be published, showing the vote for and against the Ordinance, and a certified copy of the Ordinance be posted in the Office of the City Clerk. Therefore, in accordance with Section 36933 (c) of the Government Code, I do hereby certify as follows: 1.) That the adoption of Ordinance No. CS- 280 is to be considered at the City Council Meeting to be held on the 28th day of July, 2015. 2.) That a certified copy of the full text of Ordinance No. CS-272 was posted in the City Clerk's Office on the 23rd day of July, 2015. 3.) That a summary of the Ordinance was published in the Union Tribune on the 22nd day of July, 2015. Dated: July 22, 2015 (Seal) DONNA HERATY, Deputy City Cl Certification of Posting and Publication of Ordinance No. CS-280 Page 2 4.) That Ordinance No. CS-280 was adopted on the 28th day of July, 2015 5.) That a certified copy of the full text of Ordinance No. CS-280, showing the names of those who voted in favor and against the Ordinance was posted in the City Clerk's Office on the 29th day of July, 2015. 6.) That a summary of the Ordinance, showing the names of those who voted in favor of and against the Ordinance was published in the Union Tribune, on the 3rd day of August, 2015. Dated: July 29, 2015 (Seal)