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HomeMy WebLinkAbout1993-04-20; City Council; 12186; Density Bonus OrdinanceC”“Y OF CARLSBAD - AGE\-‘A BILL II4 m AB#+Ib(p TITLE: ADOPTION OF ORDINANCE NO. NS-233 - DEPT. HD&- MTG.&Qo,!! DENSITY BONUS ORDINANCE CITY ATTY DEPT. CLK ZCA 91-5 CITY MGR. RECOMMENDED ACTION: Adopt Ordinance No. NS-233, amending Title 21 of the Carlsbad Municipal Code by the addition of Chapter 21.86 to establish requirements for the reservation and affordability of housing units for lower-income households and senior citizens in residential projects under a city wide density bonus program. lTEM EXPUNATION Ordinance No. NS-233 was introduced at the regular City Council meeting of March 23, 1993, and staff was instructed to make sure this ordinance had the same effective date as the Inclusionary Housing Ordinance No. NS-232. Therefore, this item was not returned to Council until such time as the Inclusionary Housing Ordinance was presented to Council for adoption. This ordinance will be amended by separate action in the future to make it consistent with Council’s previous action of April 6, 1993. The second reading allows Council to adopt the ordinance which would then become effective in thirty days (consistent with Ordinance No. NS-232). The City Clerk will have the ordinance published in the “Carlsbad Sun” within fifteen days, if adopted. FISCAL IMPACI See Agenda Bill No. 12,130 on file with the City Clerk. EXHIBIT !2 1. $ E % . . p 2 d 5 8 Ordinance No. NS-233. 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 ORDINANCE NO. NS-233 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AMENDING TITLE 21 OF THE CARLSBAD MUNICIPAL CODE 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 CITY WIDE DENSITY BONUS PROGRAM. APPLICANT: CITY OF CARLSBAD CASE NO: ZCA 91-05 WHEREAS, the California Government Code Section 65915 permits a developer of a residential project of five (5) or more units on a specific site to request that the project be granted either a minimum 25% density bonus and at least one additional incentive or concession, or incentives of equivalent financial value for the purpose of . providing affordable housing for very low-income or low-income households or for qualifying (senior) residents; and WHEREAS, the California Government Code Section 65915.5 permits a developer proposing to convert apartments to condominiums, to request that the project be granted a minimum 25% density bonus or other incentives of equivalent financial value, in exchange for reserving a specific percentage of the converted condominium units for lower or moderate-income households; and WHEREAS, the California Government Code Sections 65915 and 65915.5 require that local jurisdictions adopt an ordinance which establishes the procedure for implementing the density bonus/incentive program; WHEREAS, it is a program of the Housing Element of the City’s General Plan to prepare an Ordinance which implements State Government Code Sections 65915 and 65915.5. -l- The City Council of the City of Carlsbad, California does ordain as follows: 1 2 SECI’ION 1: That Title 21 of the Carlsbad Municipal Code is amended by the 3 addition of Chapter 21.86 to read as follows: . 4 “Chapter 21.86 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 RESIDENTIAL DENSITY BONUS OR IN-LIEU INCENTIVES Sections: 21.86.010 Purpose and Intent 21.86.020 Definitions 21.86.030 Regulations for New Residential Construction 21.86.040 Regulations for Condominium Conversions 21.86.050 Combined Density Bonus Housing Projects 21.86.060 Density Bonus, Equivalent In-lieu Incentives, and Additional Incentives 21.86.070 Density Bonus Housing Standards 21.86.080 Expiration of Affordability Tenure 21.86.090 Density Bonus or In-lieu Incentive Application and Review Process 21.86.100 Inclusion of Density Bonus Housing Agreement as a Condition of Development 21.86.110 Density Bonus Resale Agreement 21.86.120 Eligibility Requirements 21.86.130 Management and Monitoring 21.86.140 Administrative Fee for Target Dwelling Units 21.86.150 Separability of Provisions 21.86.010. Pumose and Intent. 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. (a) It is the purpose of this Chapter to provide incentives to developers for the production of housing affordable to lower-income households, moderate-income households and senior citizens. (b) It is the purpose of this Chapter to implement the goals, objectives, and policies of the Housing Element of the City’s General Plan. (c) It is the purpose of this Chapter to implement Sections 65915 - 65917, of the California Government Code. (d) 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. -2- 21.86.020. Definitions. 1 Whenever the following terms are used in this Chapter, they shall have the meaning 2 established by this section: (1) “Additional incentive(s)” means any incentive(s) that is offered in 3 addition to the twenty-five percent (25%) density bonus. (2) “Affordable housing (Density Bonus)” means housing for which the 4 allowable housing expenses paid by a qualifying household shall not exceed a specified fraction of the gross monthly income, adjusted for household size, for the following classes 5 of housing: 6 A. Very low-income, rental and for-sale units: 30 percent of the gross monthly income, adjusted for household size, at 50 percent of the County median 7 income. B. Low-income, rental units: 30 percent of the gross, monthly 8 income, adjusted for household size, at 60 percent of the County median income. 9 C. Low-income, for-sale units: 30 percent of the gross monthly income, adjusted for household size, at 70 percent of the County median income. 10 D. Moderate-income, for-sale units: 35 percent of the gross monthly income, adjusted for household size, at 110 percent of the County median income. 11 (3) “Allowable Housing Expense” means the total monthly or annual recurring expenses required of a household to obtain shelter. For a for-sale unit, allowable 12 housing expenses include loan principal, loan interest, property and mortgage insurance, 13 property taxes, home owners association dues and a reasonable allowance for utilities. For a rental unit, allowable housing expenses include rent, and a reasonable allowance for 14 utilities. (4) “Combined density bonus housing project” means separate residential 15 development sites which are linked by a contractual relationship such that some or all of the target dwelling units and/or density bonus dwelling units which are associated with 16 one development site are produced and operated at an alternative development site or 17 sites. (5) “Conversion” means the change of occupancy of a dwelling unit from I8 owner-occupied to rental or vice versa. (6) “Density bonus (condominium conversions)” means a minimum increase 19 of at least twenty-five percent (25%) over the number of apartments within the existing 20 structure or structures proposed for conversion. (7) “Density Bonus (new residential construction)” means a minimum density 21 increase of at least twenty-five percent (25%) over either the Growth Management Control Point of the applicable General Plan designation, as defined in Section 2190.045 22 of this Title, or the otherwise maximum allowable residential density as specified by the applicable master plan or specific plan, at the time of application. 23 (8) “Density bonus dwelling units” means those residential units granted 24 pursuant to the provisions of this Chapter which are above the maximum allowable residential yield of the project site. 25 (9) “Density Bonus Housing Agreement” means a legally binding agreement between a developer and the City to ensure that the density bonus requirements of this 26 Chapter are satisfied. The agreement establishes the number of target dwelling units and 27 density bonus dwelling units, the unit sizes, location, affordability tenure, terms and conditions of affordability and unit production schedule. -3- (10) “Growth Management Control Point” shall have the same meaning as 1 Chapter 21.90, Section 2190.045 of this Title. 2 (11) “Housing Development” means a new residential development or conversion of existing residential building(s) of five (5) or more residential dwelling units. 3 (12) “In-lieu Incentives” means incentives offered by the City, which are of equivalent financial value based upon the land cost per dwelling unit(s), that are offered 4 in-lieu of the twenty-five percent (25%) density bonus and additional incentive. 5 (13) “Incentives” means such regulatory concessions as stipulated in State Government Code Section 65915(h), to include, but not be limited to the reduction of site 6 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 7 in identifiable cost reductions to enable the provision of housing for lower-income households and qualifying residents. 8 (14) “Income” means any monetary benefits that is determined as income in g 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 1o Section 8 Rental Assistance Program, or its successor. (15) “Low-income Household” means those households whose gross income 11 is more than 50 percent but does not exceed 80 percent of the median income for San Diego County as determined annually by the U.S. ,Department of Housing and Urban 12 Development. l3 (16) “Lower-income Household” means low-income and very low-income households, whose gross income does not to exceed 80 percent of the area median income. 14 (17) “Market-rate Unit” means a dvrielling unit where the rental rate or sales price is not restricted either by this Chapter or by requirements imposed through other 15 local, state, or federal affordable housing programs. (18) “Maximum allowable residential yield” means the maximum number 16 of residential units permitted on the project site, which number of units is calculated by I.7 multiplying the net developable acreage of the project site times the growth management control point(s) for the project site’s applicable residential General Plan designation(s). 18 (19) “Moderate-income Household” means those households whose gross income is more than 80 percent but does not exceed 120 percent of the median income 19 for San Diego County as determined annually by the U.S. Department of Housing and 20 Urban Development. (20) “Partial Density Bonus” means a density bonus less than twenty-five 21 percent (25%). (21) “Qualifying Resident” means a resident as defined in Section 51.2 of 22 the California Civil Code. (22) ‘Target Dwelling Unit” means a dwelling unit that will be offered for 23 rent or sale exclusively to and which shall be affordable to the designated income group 24 or qualified (senior) resident, as required by this Chapter. (23) ‘Target Income Level” means the income standards for very low, low 25 and moderate-income levels within San Diego County as determined annually by the U.S. Department of Housing and Urban Development’ and adjusted for family size. 26 (24) “Very Low-income Household” means a household earning a gross 27 income equal to 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. 28 11 -4- 1 2 3 4 5 6 7 e 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 21.86.030. Repulations for New Residential Construction. (a) The City shall grant either: a density bonus and at least one additional incentive, as set forth in Section 21.86.060(c), or in-lieu incentives of equivalent financial value, as set forth in Section 21.86.060(c) to an applicant or developer of a housing development of at least five (5) units, who agrees to construct the following: (1) A minimum of twenty percent (20%) of the total units of the housing development as restricted and affordable to low-income households, or (2) A minimum of ten percent (10%) of the total units of the housing development as restricted and affordable to very low income households; or (3) A minimum of fifty percent (50%) of the total units of the housing development as restricted to qualified (senior) residents. (b) In determining the number of density bonus dwelling units to be granted pursuant to the standards of this Section, the maximum allowable residential yield for the site, shall be multiplied by 0.25. Any resulting decimal fraction shall be rounded to the next larger integer. (c) In determining the number of target dwelling units to be reserved pursuant to the standards of this Section, the maximum allowable residential yield shall be multiplied by either 0.10, 0.20 or 0.50, for very low-income households, low-income households or qualified residents, respectively. The density bonus shall not be included when determining the number of housing units which is equal to ten percent (lo%), twenty percent (20%), or fifty percent (50%) of the total units of the housing development. Any resulting decimal fraction shall be rounded to the next larger integer. (d) In cases where a density increase of less than twenty-five percent (25%) is requested, no reduction will be allowed in the number of target dwelling units required. (e) In cases where a density increase of more than twenty-five percent (25%) is requested, the requested density increase is an additional density bonus and shall be considered an additional incentive, in accordance to Section 21.86.060(c) of this Chapter. The final decision making authority of the City may at its discretion grant an additional density bonus if a written finding is made by the final decision making authority of the City that the additional density bonus is required in order for allowable housing expenses to be set as affordable. The City in granting an additional density bonus may require some portion of the additional density bonus to be designated as target dwelling units. (f) In cases where the developer agrees to construct both twenty percent (20%) of the total units for low-income households and ten percent (10%) of the total units for very low-income households, the developer is entitled to only one density bonus and at least one additional incentive. (g) 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 additional incentives or in-lieu 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 21.86.100 of this Chapter. 21.86.040. Regulations for Condominium Conversions. (a) The City shall grant either: a density bonus, or in-lieu incentives of equivalent financial value, as set forth in Section 21.86.060(c), to an applicant or developer proposing -5- 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 to convert apartments to condominiums, and who agrees to provide the following: (1) A minimum of thirty-three percent (33%) of the total units of the housing development as restricted and affordable to low-income or moderate-income house holds; or (2) A minimum of fifteen percent (15%) of the total units of the housing development as restricted and affordable to lower-income households. (b) An applicant/developer proposing to convert apartments to condominiums shall be ineligible for a density bonus or in-lieu incentives under this Section if the apartments proposed for conversion constitute a housing development for which a density bonus or in-lieu incentives were previously provided under this Chapter. (c) In determining the number of density bonus dwelling units to be granted pursuant to the standards of this Section, the number of existing apartment units within the structure or structures proposed for conversion shall be multiplied by 0.25. Any resulting decimal fraction shall be rounded to the next larger integer. (d) In determining the number of target dwelling units to be reserved pursuant to the standards of this Section, the number of existing apartment units within the structure or structures proposed for conversion shall be multiplied by either 0.33 or 0.15;for low or moderate-income households or lower-income households, respectively. The density bonus shall not be included when determining the number of housing units which is equal to thirty-three percent (33%) or fifteen percent (15%) of the total units of the housing development. Any resulting..decimal fraction shall be rounded to the next larger integer. (e) In cases where a density increase of less than twenty-five percent (25%) is requested, no reduction will be allowed in the number of target dwelling units required. (f) 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 in-lieu 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 21.86.100 of this Chapter. 21.86.050. Combined Densitv Bonus Housing Proiects. Circumstances may arise from time to time in which the public interest would be served by allowing some or all of the density bonus and/or target dwelling units associated with one residential project site to be produced and operated at an alternative site or sites. Where the parties in interest to the sites and the City form an agreement to such an effect, the resulting linked project sites shall be considered to be a single combined density bonus housing project. It is the exclusive prerogative of the final decision making authority of the City to determine whether or not it is in the public interest to authorize the residential sites to form a combined density bonus housing project. All agreements between parties to form a combined density bonus housing project shall be made a part of the Density Bonus Housing Agreement (Section 2186.100 of this Code) required for the sites. -6- 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 21.86.060. Densitv Bonus. Equivalent In-lieu Incentives. and Additional Incentives. (a) Upon application by a developer, pursuant to Section 21.86.030, the final decision-making authority of the City shall grant either: a density bonus and at least one additional incentive or in-lieu incentives of equivalent financial value to qualified lower- ~ income or senior housing developments. s (b) Upon application by a developer, pursuant to Section 21.86.040, the final decision-making authority of the City shall grant either: a density bonus or in-lieu incentives of equivalent financial value to qualified lower-income and/or moderate-income housing developments. (c) Additional incentives or in-lieu incentives, as defined in Sections 21.86.020(l) and (12) respectively, may include, but are not limited to, the following: (1) A reduction in site development standards or a modification of zoning code requirements or architectural design requirements which exceed the minimum building standards approved by the State Building Standards Commission as provided in Part 2.5 (commencing with Section 18901) of Division 13 of the Health and Safety Code, including, but not limited to, a reduction in setback and square footage requirements and in the ratio of vehicle parking spaces that would otherwise be required; (2) Approval of mixed use zoning in conjunction with the housing development if land uses are compatible with the housing development and mixed use zoning will reduce the cost of developing the housing; or (3) Other regulatory incentives or concessions proposed by the developer or the City which result in identifiable cost reductions; (4) Partial or additional density bonus; (5) Subsidized or reduced planning, plan check or permit fees; and (6) Direct financial aid including, but not limited to redevelopment set-aside funding, Community Development Block Grant funding, or subsidizing infrastructure, land cost or construction costs or other incentives of equivalent financial value based upon the land costs per dwelling unit. (d) The value of each incentive will vary from project to project, therefore additional incentives or in-lieu incentives shall be determined on a case-by-case basis. (e) The City shall provide at least one additional incentive, for qualified housing developments as set forth in Section 21.86.30, upon a written request by the developer unless the City makes a written finding that the additional incentive is not required in order for allowable housing expenses to be set as affordable. The applicant/owner shall be required to show that the additional incentive is economically necessary to make the units affordable as required by this Chapter. The process for requesting an additional incentive and the criteria for evaluating such request is contained in Section 21.86.0!90 of this Chapter. (f) It is the exclusive prerogative of the City to offer in-lieu incentives of equivalent financial value, based upon the land cost per dwelling unit, instead of a density bonus and at least one additional incentive. (g) Where a density bonus would cause a housing development targeted for lower- income households, moderate-income households or qualified seniors to exceed the upper end of the General Plan density range for the project site, then this request shall be evaluated relative to the proposal’s compatibility with adjacent land uses and its proximity to employment opportunities, urban services or major roads. (h) All qualified housing developments as set forth in Sections 21.86.30 and 21.86.40 shall be given priority in processing. -7- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 2186.070. Densitv Bonus Housing Standards. (a) Notwithstanding a developer’s request to process a residential project pursuant to this Chapter, all residential projects are subject to and must satisfy the requirements (i.e. number of required lower and/or moderate-income units, tenure of affordability, and target income groups) of Chapter 21.85 (Inclusionary Housing) of this Code. (b) Some of the provisions of this Chapter may satisfy the developer’s inclusionary housing obligations (i.e.: 15 percent of the base units reserved as affordable to lower- income households for a minimum 30 year tenure) consistent with Chapter 21.85 of this Code, and other provisions of this Chapter will not. (c) Required target dwelling units should be constructed concurrent with market rate dwelling units unless both the final decision making authority of the City and the developer/applicant agree within the Density Bonus Housing Agreement to an alternative schedule for development. (d) Target dwelling units shall remain restricted and affordable to the designated group for a period of at least thirty (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, under the following circumstances: (1) Both a density bonus and, at least one additional incentive are granted , by the City; (2) In-lieu incentives in the form of direct financial contributions are granted by the City; or (3) Any target unit which is provided through the conversion of apartments to air space condominiums. (e) Target dwelling units shall remain restricted and affordable to the designated group for a period of at least ten (10) years under the following circumstances: (1) Only a density bonus is granted and no additional incentives are granted by the City; or (2) In-lieu incentives other than direct financial contributions are granted by the City. (f) Target dwelling units and density bonus dwelling units should be built on-site and, whenever reasonably possible, be distributed throughout the project site. (g) In certain cases where a combined density bonus housing project is proposed, the target dwelling units and density bonus dwelling units may be provided on a site separate from the site of the market-rate units. Construction of the target dwelling units and density bonus dwelling units is limited to sites within the same City quadrant in 21 which the market-rate units are located. However, in the event that two properties abut a road, which forms a quadrant boundary, and the two properties are contiguous, except 22 for the presence of the roads, then the target dwelling units and/or density bonus units may be provided on the other property. Where the target dwelling units are located within a 23 master or specific plan area, the first priority for location of the alternative site is within the same master or specific plan, followed in order by the same Local Facilities 24 Management Zone. In the event that a Local Facilities Management Zone crosses City 25 quadrants, the target dwelling units and density bonus dwelling units shall be located within the same City quadrant in which the market-rate units are located. 26 (h) 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 27 transportation and commuter rail facilities (i.e. freeways, bus lines) and that are 28 compatible with adjacent land uses. -8- 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 -_ (i) Density bonus projects shall include a mix of target dwelling units (by number of bedrooms) in response to affordable housing demand priorities of the City, whenever feasible. (j) Density bonus projects shall comply with all applicable development standards, except those which may be modified as an additional incentive as provided herein with regard to additional incentives. 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. (k) 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. 21.86.080. Exniration of Affordabilitv Tenure. (a) At the end of the minimum tenure for rental units in projects containing target units or for-sale target dwelling units a notice of availability of the rental project or for-sale target dwelling unit(s) shall be prepared by the property owner and submitted to the Housing and Redevelopment Director. Within 90 days of the notification of availability of the rental project or for sale target dwelling unit(s), the City, or its designee has the first right of refusal to buy the rental project or for-sale target dwelling unit(s) for the purposes of providing affordable housing. Under this option, the City or its designee will make a good faith effort to close escrow within 90 days. The sales price of the rental project or for-sale unit(s) shall be the fair-market appraised value at the time of sale, assuming continued affordability restrictions. The fair-market valuation of the rental project or for- sale target dwelling unit(s) shall be determined by an appraisal made by an agent mutually agreed upon by the City and the property owner. Costs associated with the appraisal shall be borne by the property owner. (b) If the City or its designee fails to exercise its option of first right of refusal to purchase the rental project or for-sale target dwelling unit(s) within 90 days of notification of availability of the rental project or for-sale units, then the target units may be converted to market-rate units under the following circumstances: (1) The management of the complex intending to convert target rental units to market-rate units shall give notice of such intent, via registered mail, to each affected tenant household and to the City Clerk. Said notice shall be given at least one hundred eighty (180) days prior to the date proposed for conversion to market-rate rents; and (2) Each affected tenant household shall be eligible to receive rental relocation assistance in an amount equal to four (4) months rent, said assistance to be provided by the owner/management company and paid to the tenant at least sixty (60) days prior to conversion to market-rate rents. 21.86.090. Densitv Bonus or In-lieu Incentive Annlication and Review Process. (a) All residential projects requesting a density bonus, additional incentive(s) or in-lieu incentives pursuant to this Chapter, shall be required to comply with the following application requirements: (1) Application for on-site target dwelling units: Target dwelling units proposed to be developed within the same project site requiring such units shall be designated on the project plans and shall be processed under a Site Development Plan application in addition to the otherwise required project development application(s) (i.e., -9- 1 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 tentative maps, parcel maps, planned unit developments, conditional use permits and redevelopment permits). The Site Development Plan shall be processed pursuant to Section 21.53.120 of this Code. No additional hearings or approvals shall be required, except as provided herein with regard to the provision of financial incentives. If the application involves a request to the City for direct financial incentives, 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 the Site Development Plan application and any related discretionary permits. (2) Application for Combined Density Bonus Housing Projects: Separate development application(s) (including the submittal of a Site Development Plan) shall be processed concurrently for both sites unless the alternative site has previously received its discretionary permits. No additional applications, hearings or approvals shall be required, except as provided herein with regard to the provision of financial incentives. If the application involves a request to the City for direct financial incentives, 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 all of the required development permits. (b) Preliminary application: An applicant/developer proposing a density bonus housing project, shall submit a preliminary application prior to the submittal of any formal requests for approvals of such housing development. The preliminary application shall 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, building elevations, existing contours and proposed grading; and (4) A letter identifying what specific incentives (i.e.; standards modifications, density bonus, or fee subsidies) are being requested of the City. Within thirty days of receipt of the preliminary application by the Planning Director for projects not requesting direct financial assistance from the City, or ninety days for projects requesting direct financial assistance from the City, the department shall provide to an applicant/developer, a letter which identifies project issues of concern, the financial assistance that the Planning 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. (c) Submittal: The completed application(s) shall include the following information: (1) 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; (2) A letter signed by the present owner stating what incentives, if any, are being requested from the City; (3) 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. -100 1 2 3 4 5 6 7 .E 5 1c 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (4) Site plans, designating the total number of units proposed on the site, including the number of target dwelling units and density bonus dwelling units, and supporting plans per the application submittal requirements. (5) In the case of a request for any incentive(s), a pro-forma for the 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 Ameement 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. -110 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 (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; (3) The unit size(s) (square footage) of target dwelling units and the number of bedrooms per target dwelling unit; (4) The proposed location of the lower-income and senior target dwelling units; years); (5) Tenure of restrictions for target dwelling units (of at least 10 or 30 (6) Schedule for production of target dwelling units; (7) Incentives and/or financial assistance provided by the City; (8) Where applicable, tenure and conditions governing the initial sale of for sale target units; and (9) 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. (c) A Density Bonus Housing Agreement for condominium conversions processed pursuant to this Chapter shall be required to include the following: (1) The number of density bonus dwelling units granted; (2) The number of lower and moderate-income dwelling units proposed; (3) The unit size(s) (square footage) of target dwelling units and the number of bedrooms per target dwelling unit; (4) The proposed location of the lower and moderate-income target dwelling units; (5) Tenure of affordability for target dwelling units (30 year minimum); (6) Schedule for production of target dwelling units; (7) In-lieu incentives provided by the City; and (8) Terms and conditions of for-sale target dwelling units. (d) Where an Inclusionary Housing Agreement is required pursuant to Section 21.85.160, both the Density Bonus and Inclusionaxy Housing Agreements shall be combined into a single Housing Agreement. 2186.110. Densitv Bonus Resale Agreement. (a) All buyers of for-sale target dwelling units shall enter into a Density Bonus Resale Agreement with the City’s Housing Authority prior to purchasing the unit or property. The Resale Agreement shall specify that the title to the subject property or unit may not be transferred without prior approval of the City’s Housing Authority. (b) Where an Inclusionary Resale Agreement is required pursuant to Section 21.85.170, both the Resale Agreements for inclusionary for-sale units and target for-sale units shall be combined into a single Resale Agreement. 2186.120. Elimiilitv Reauirements. Only households meeting the standards for lower-income households, moderate- income households, and qualified (senior) residents as defined in Section 21.86.020 shall be eligible to occupy target dwelling units. . . . -12- 4 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 20 21.86.130. Management and Monitoring, Rental target dwelling units shall be managed/operated by the developer or his or her agent. Each developer of rental target dwelling units shall submit an annual report to the City identifying which units are target dwelling units, the monthly rent, vacancy information for each target rental dwelling unit for the prior year, monthly income for tenants of each target rental dwelling unit throughout the prior year, and other information as required by the City, while ensuring the privacy of the tenant. 21.86.140. Administrative Fee for Target Dwelling Units. Over the minimum tenure of projects containing target dwelling units, the City will either directly or, via one or more third parties, provide a number of recurring services associated with the administration and monitoring of such units. Although the provision of some of these services will be within the normal purview of existing City activities, others will involve new costs to the City for which there are no existing funding sources. Unless and until alternative funding sources are identified, it is necessary to require the builders/owners of residential projects to share in these administrative costs. Therefore, the City Council hereby establishes an administrative fee for target dwelling units, the amount to be established by City Council resolution and paid prior to the issuance of building permit(s). 21.86.150. Seoarabilitv of Provisions. 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. -13- EFFECTIVE DATE: This ordinance shall be effective thirty days after its 2 II adoption, and the City Clerk shah certify to the adoption of this ordinance and cause it to I 3 be published at least once in the Carlsbad Sun within fifteen days after its adoption. 4 5 INTRODUCED AND FIRST REXD at a regular meeting of the Carlsbad City 6 Council on the 23rd day of MARCH , 19 93 , and thereafter. 7 PASSED AND ADOPTED at a regular meeting of the City Council of the City a of Carlsbad on the 20th day of APRIL ,l9 93 , by the following vote, to wit: 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 AYES: Council Members Lewis, Stanton, Kulchin NOES: None ABSENT: Council Members Nygaard, Finnila APPROVED AS TO FORM AND LEGALITY ATTEST: 14 28