Loading...
HomeMy WebLinkAbout2008-05-06; City Council; 19429; Density bonus amendment modificationsCITY OF CARLSBAD - AGENDA BILL 12 19,429 MTG. 05/06/08 DEPT. PLN CALIFORNIA COASTAL COMMISSION SUGGESTED MODIFICATIONS TO DENSITY BONUS AMENDMENT ZCA 04-10A/LCPA 04-1 7A DEPT. HEAD CITY ATTY. CITY MGR. RECOMMENDED ACTION: INTRODUCE Ordinance No. 04-10A/LCPA 04-17A), NS-889 , APPROVING an amendment to the Zoning Ordinance (ZCA thereby ACCEPTING AND ADMINISTERING the California Coastal Commission's suggested modifications to LCPA 04-17. ITEM EXPLANATION: The purpose of this agenda bill is to request that the City Council accept the Coastal Commission's suggested modifications to Local Coastal Program Amendment (LCPA) 04-17 (Density Bonus Amendment), and administer the suggested modifications by approving an amendment to the Zoning Ordinance (ZCA 04-10A/LCPA 04-17A). On March 6, 2008, the Coastal Commission approved LCPA 04-17, with conditions of approval that require the City to modify their previous approval of LCPA 04-17. Background On March 21, 2006, the City Council approved ZCA 04-10/LCPA 04-17 - Density Bonus Amendment (Ordinance No. NS-794 and Resolution No. 2006-065). ZCA 04-10/LCPA 04-17 consists of an amendment to the Density Bonus and Inclusionary Housing regulations in the Zoning Ordinance (LCPA 04-17 is necessary because the Zoning Ordinance is the implementing ordinance of the LCP). The purpose of the amendments is to ensure consistency between the City's density bonus regulations and State density bonus law. The City Council's approval of ZCA 04-10/LCPA 04-17 does not become effective in the coastal zone until the Coastal Commission's approval of LCPA 04-17 is effective. As mentioned above, the Coastal Commission approved LCPA 04-17 on March 6, 2008; however, that approval will not become effective until the City Council accepts and administers the suggested modifications. Coastal Commission Suggested Modifications The Coastal Commission's suggested modifications for LCPA 04-17 (which necessitates a modification to ZCA 04-10, because the modifications amend the Zoning Ordinance) are summarized as follows: 1. Amend Chapter 21.85 (Inclusionary Housing regulations) to require that any "offset" granted pursuant to the Inclusionary Housing ordinance be consistent with the City's Local Coastal Program Land Use Plan(s); 2. Amend Chapter 21.86 (Density Bonus regulations) to require a finding of consistency with the LCP land use plan(s) for approval of a density bonus and any requested incentive or modification; and DEPARTMENT CONTACT: Jennifer Jesser, 760-602-4637, iiess(o)ci.carlsbad.ca.us FOR CITY CLERKS USE ONLY. COUNCIL ACTION: APPROVED DENIED CONTINUED WITHDRAWN AMENDED c/D D D D CONTINUED TO DATE SPECIFIC CONTINUED TO DATE UNKNOWN RETURNED TO STAFF OTHER -SEE MINUTES D D D D Page 2 3. Amend Chapter 21.86 (Density Bonus regulations) to clarify that lands identified as "undevelopable" in the General Plan, LCP, and Zoning Ordinance are not included when calculating density. Staff is recommending approval of the Coastal Commission's suggested modifications (Exhibit 2 shows the recommended modifications to ZCA 04-10/LCPA 04-17 - Density Bonus Amendment). ZCA 04-10 and LCPA 04-17 will not become effective in the coastal zone until: 1. The City Council accepts and administers the Coastal Commission's suggested modifications, and 2. The City's approval of the modifications is reported to the Coastal Commission. Approval of ZCA 04-1OA will also amend the Inclusionary Housing and Density Bonus regulations that are currently effective outside the coastal zone, which will ensure that the regulations applicable citywide (inside or outside the coastal zone) are consistent. FISCAL IMPACT: The only anticipated fiscal impact would be from staff time required to complete the processing of the Coastal Commission's suggested modifications. ENVIRONMENTAL IMPACT: On March 21, 2006, the City Council adopted a Negative Declaration for ZCA 04-10 and LCPA 04-17 - Density Bonus Amendment (Resolution No. 2006-065). The Coastal Commission's suggested modifications do not create any new significant environmental effects that were not previously identified. No additional environmental review is required. EXHIBITS: 1. City Council Ordinance No. NS-889 2. Coastal Commission suggested modifications to Density Bonus Amendment - ZCA 04-1 OA/ LCPA 04-17A. 3. Addendum, dated February 25, 2008, and report to the Coastal Commission (prepared by Coastal Commission staff), dated February 14, 2008. 1 ORDINANCE NO. NS-889 2 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF * CARLSBAD, CALIFORNIA, AMENDING SECTIONS OF CHAPTERS 21.85 AND 21.86 OF THE MUNICIPAL CODE, 4 THEREBY ACCEPTING AND ADMINISTERING THE CALIFORNIA COASTAL COMMISSION'S SUGGESTED 5 MODIFICATIONS TO LCPA 04-17 (DENSITY BONUS AMENDMENT). 6 CASE NAME: DENSITY BONUS AMENDMENT SUGGESTED MODIFICATIONS 7 CASE NO.: ZCA 04-1OA/LCPA 04-17A __ 8 WHEREAS, the Planning Commission did on February 1, 2006, hold a duly 9 noticed public hearing as prescribed by law to consider Zone Code Amendment (ZCA 04-10) and Local Coastal Program Amendment (LCPA 04-17), and adopted Planning Commission Resolutions No. 5879 and 5880 recommending to the City Council that ZCA 04-10 and LCPA 12 04-17 be approved; and 13 WHEREAS, the City Council did on March 21, 2006, hold a duly noticed public 14 hearing as prescribed by law to consider said ZCA 04-10 and LCPA 04-17, and introduced 15 Ordinance No. NS-794 to approve ZCA 04-10, and adopted Resolution No. 2006-065, 16 approving LCPA 04-17, the effective date of which was subject to Coastal Commission approval of said LCPA; and 15 19 WHEREAS, the City Council did on March 28, 2006, adopt Ordinance No. NS- 2Q 794, approving ZCA 04-10, the effective date of which within the coastal zone was subject to 21 Coastal Commission approval of LCPA 04-17; and 22 WHEREAS, on March 6, 2008, the California Coastal Commission approved 23 LCPA 04-17 with suggested modifications; and i 24 WHEREAS, accepting and administering the California Coastal Commission's 25 suggested modifications, as set forth in this ordinance, is necessary to comply with the 2" California Coastal Act and California Administrative Code; and 27 WHEREAS, the California Coastal Commission suggested modifications are 28 clarifications of the City's proposed zone amendments rather than further amendments as described in Government Code Section 65833 and do therefore not require further review by the 7 City's Planning Commission. NOW, THEREFORE, the City Council of the City of Carlsbad does ordain as 4 follows: 5 SECTION 1: That Section 21.85.100 of the Carlsbad Municipal Code, as 6 previously approved pursuant to Ordinance No. NS-794, is modified to read as follows: 7 21.85.100 Offsets to the cost of affordable housing development. o A. 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 . 0 requirements of this chapter. B. Offsets will be offered by the city to the extent that resources and programs for I j 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 12 housing goals. To the degree that the city makes available programs to provide offsets, developers may make application for such programs. 13 C. 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 14 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 15 are used to leverage the requested offsets. D. Nothing in this chapter establishes, directly or through implication, a right to 16 receive any offsets from the city or any other party or agency to enable the developer to meet the obligations established by this chapter. " E. 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. jo F. 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. 20 G. For development located in the coastal zone, any offset provided pursuant to this section shall be consistent with the applicable provisions of the certified Carlsbad Local Coastal 21 Program Land Use Plan(s), with the exception of density. 22 SECTION 2: That Section 21.86.020.A.17 of the Carlsbad Municipal Code, as 23 previously approved pursuant to Ordinance No. NS-794, is modified to read as follows: 24 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. 25 All environmentally constrained lands identified as undevelopable in the general plan, local coastal program, and zoning ordinance shall be excluded from the total area of the project site 26 when calculating maximum density. 27 SECTION 3: That Section 21.86.120 of the Carlsbad Municipal Code, as 28 previously approved pursuant to Ordinance No. NS-794, is modified to read as follows: 21.86.120 Findings for approval. -2- 1 A. When a project involves a request for a density bonus, incentive(s) or 2 concession(s), the following findings shall be made as part of the approval of the development application(s) required for the project: 3 1 . The project is consistent with the provisions of this chapter. 2. The requested incentive(s) or concession(s) will result in identifiable, financially 4 sufficient, and actual cost reductions; 3. In cases where an applicant requests a waiver or reduction of development 5 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. 6 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) 7 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 8 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 10 impact. 5. In cases where an applicant requests to convert apartment units to 11 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. 12 6. For development located in the coastal zone, the requested density bonus, and any requested incentive(s), concessions(s), and/or waivers or reduction(s) of development 13 standards, are consistent with all applicable requirements of the certified Carlsbad Local Coastal Program Land Use Plan(s), with the exception of density. 14 EFFECTIVE DATE: This ordinance shall be effective thirty days after its 15 adoption, and the City Clerk shall certify to the adoption of this ordinance and cause it to be 16 published at least once in a publication of general circulation the City of Carlsbad within fifteen days after its adoption. (Notwithstanding the preceding, this ordinance shall not be effective lo until approved by the California Coastal Commission.) 20 " 21 // 22 // 23 // 24 // 25 // 26 „ 27 // 28 // II -3- INTRODUCED AND FIRST READ at a regular meeting of the Carlsbad City Council on the 6™ day of May 2008, and thereafter. PASSED AND ADOPTED at a regular meeting of the City Council of the City of 4 Carlsbad on the day of 2008, by the following vote, to wit: 5 AYES: 6 NOES: 7 ABSENT: 8 ABSTAIN: 10 APPROVED AS TO FORM AND LEGALITY 12 13 RONALD R. BALL, City Attorney 14 15 CLAUDE A. LEWIS, Mayor 16 17 ATTEST: 18 19 LORRAINE M. WOOD, City Clerk 20 (SEAL) 21 " 22 23 24 25 26 27 28 -4- (f EXHIBIT 2 COASTAL COMMISSION SUGGESTED MODIFICATIONS TO DENSITY BONUS AMENDMENT - ZCA 04-10A/LCPA 04-17A Ordinance No. NS-794 (approved by City Council on March 21, 2006) will not be effective in the Coastal Zone until the City Council approves the Coastal Commission's suggested modifications, as shown below. The Coastal Commission's suggested modifications are shown with bold text. • Section 21.85.100 (Inclusionary Housing, Offsets to the cost of affordable housing development), as previously approved pursuant to Ordinance No. NS-794, is proposed to be modified as follows: 21.85.100 Offsets to the cost of affordable housing development. A. 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. B. 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. C. 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. D. 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. E. 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. F. Furthermore. dDevelopers 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. G. For development located in the coastal zone, any offset provided pursuant to this section shall be consistent with the applicable provisions of the certified Carlsbad Local Coastal Program Land Use Plan(s). with the exception of density. (Note: the Coastal Commission suggested the addition of subsection G, shown above; the reformatting of this section is recommended by City staff). "7 COASTAL COMMISSION SUGGESTED MODIFICATIONS TO DENSITY BONUS AMENDMENT (ZCA 04-10/LCPA 04-17) PAGE 2 • Section 21.86.020.A.17 (Density Bonus, definitions), as previously approved pursuant to Ordinance No. NS-794, is proposed to be modified as follows: 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. All environmentally constrained lands identified as undevelopable in the general plan, local coastal program, and zoning ordinance shall be excluded from the total area of the project site when calculating maximum density. • Section 21.86.120 (Density Bonus, findings for approval), as previously approved pursuant to Ordinance No. NS-794, is proposed to be modified as follows: 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. 6. For development located in the coastal zone, the requested density bonus, and any requested incentive(s). concessions(s). and/or waivers or reduction(s) of development standards, are consistent with all applicable requirements of the certified Carlsbad Local Coastal Program Land Use Plants), with the exception of density. EXHIBIT 3 STATE OF CALIFORNIA - THE RESOURCES AGENCY ARNOLD SCHWARZENEGGER, Governor CALIFORNIA COASTAL COMMISSION SAN DIEGO AREA 7575 METROPOLITAN DRIVE, SUITE 103 SAN DIEGO, CA 92108-4402 (619) 767-2370 Th6a Addendum February 25, 2008 To: Commissioners and Interested Persons From: California Coastal Commission San Diego Staff Subject: . Addendum to Item Th 6a, (Carlsbad LCP Amendment No. 1-06D), for the Commission Meeting of 3/6/08 After consultation with the City and staff counsel, staff recommends the following changes be made to the above-referenced staff report. Additions are shown in underline and omitted language is shown in strike through. City staff requested the deletion of Suggested Modification #4 altogether because they feel it is inconsistent with the structure of their ordinance, contradictory to other findings and they believe the City Attorney's office would assure that adequate findings are adopted. In addition, with regard to Suggested Modification #2, they requested a re-phrasing to avoid redundancy in their findings. After consultation with Commission staff counsel, staff has agreed with the City's requested revisions with one clarification. In the re-drafting of Sug. Mod. #2, the reference will be to "all" applicable requirements of the certified LCP. Please incorporate the following changes and make corollary changes within the findings: 1. On Page 2 of the Staff Report, the second paragraph shall be revised as follows: Therefore, Suggested Modification #1 provides that for development located in the coastal zone, any offset provided pursuant to this section shall be consistent with the applicable provisions of the certified Carlsbad Local Coastal Program Land Use Plan(s) (with the exception of density). Similarly, Suggested Modification #2 provides that for development located in the coastal zone, (a) the requested density bonus doos not oxcood the density permitted under Government Code section 65915 and is consistent with all applicable requirements of the certified Carlsbad Local Coastal Program Land Use Plan(s), with tho exception of density, and (b) the and any requested incentive(s), concession(s), and/or waiver(s) or reduction(s) of development standards are consistent with all applicable requirements of the certified Carlsbad Local Coastal Program Land Use Plan(s), with the exception of density. Suggested Modification #3 makes it clear that all environmentally constrained lands identified as non-developable in the general plan, local coastal program, and zoning ordinance shall be excluded from the total area of the project site when calculating maximum density. A last concern is that the Coastal Act Addendum to Carlsbad LCPA #1-06D Page 2 provides that if the density sought by the applicant cannot feasibly be accommodated on tho site in a manner that is in conformity with Chapter 3, the permit issuing authority may rojoct such a roquost for a density bonus, etc. However, there is no language in the City's ordinance to this effect. Therefore Suggested Modification #4 identifies tho necessary findings to reject tho granting of an offset, incentive or concession to support a density bonus if it can't bo found consistent with and adequate to implement the certified LUPs. On Page 5, Suggested Modification #2, as originally drafted, shall be revised as follows: 6. For development located in the coastal zone, the requested density bonus, dees not exceed the density permitted undor Government Code section 65915 and is consistent with all requirements of the certified Carlsbad Local Coastal Programs Land Use Plan(s), with tho exception of density, and (b) the any requested incentive(s), concession(s), and/or waivers or reduction(s) of development standards, are consistent with all applicable requirement(s) of the certified Carlsbad Local Coastal Program Land Use PlanfsX with the exception of density. On Page 5, Suggested Modification #4 shall be deleted in its entirety as follows: A. For development located in the coastal zone, if tho requested density bonus is not granted, tho following finding shall bo made and shall bo based on substantial evidence in tho rocord: tho requested density bonus cannot feasibly bo accommodated in a manner that is in conformity with the requirements of the certified Carlsbad Local Coastal Program. (G:\San Diego\Reports\LCPs\Carlsbad\CAR LCPA 1-06D Density Bonus addendura.doc) 10 STATE OF CALIFORNIA - THE RESOURCES AGENCY ARNOLD SCHWARZENEGGER, Governor CALIFORNIA COASTAL COMMISSION SAN DIEGO AREA 7575 METROPOLITAN DRIVE, SUITE 103 SAN DIEGO, CA 92108-4421 (619) 767-2370 Thu6a February 14, 2008 TO: COMMISSIONERS AND INTERESTED PERSONS FROM: SHERILYN SARB, DEPUTY DIRECTOR SAN DIEGO COAST DISTRICT DEBORAH LEE, DISTRICT MANAGER, SAN DIEGO COAST DISTRICT LAURINDA OWENS, COASTAL PLANNER, SAN DIEGO COAST DISTRICT SUBJECT: STAFF RECOMMENDATION ON CITY OF CARLSBAD MAJOR LCP AMENDMENT 1-06D (Density Bonus Revisions) For Commission Meeting of March 5-7, 2008 SYNOPSIS The subject amendment request revises the certified Carlsbad Mello II LCP Implementation Program. On July 14, 2006, the City of Carlsbad Local Coastal Program Amendment No. 1-06 was submitted in the San Diego District office. The LCP amendment includes four separate components (A, B, C and D). The entire LCP package was filed as of May 22,2007 and a one-year extension was granted in August, 2007. However, staff separated out this component for action. The subject component (D) addresses changes to the Density Bonus regulations. It only involves an amendment to the implementation plan. Components A and B address the Habitat Management Plan (HMP) Implementation Plan and HMP Hardline Land Use Map and Zone Changes to Open Space. Component C addresses Conditional Use Permit (CUP) code revisions and was approved in January, 2006. Components A and B will be reviewed separately at a later date. SUMMARY OF AMENDMENT REQUEST The subject amendment request proposes to (A) amend the term "density bonus program" in the Glossary of the Land Use Element of the General Plan to ensure consistency with the State definition of "density bonus"; (B) amend Chapter 21.86 (Density Bonus) to ensure consistency with State law; and (C) amend Chapter 21.85 (Inclusionary Housing) to ensure there is no conflict with the provisions of Chapter 21.86 (Density Bonus). The purpose of the amendment is to ensure that the General Plan, Local Coastal Program and Zoning Ordinance are consistent with recent amendments that were made to the State's density bonus law (Government Code Section 65915) which became effective on 1/1/05 and 1/1/06. II City of Carlsbad LCPA 1-06D Density Bonus Page 2 SUMMARY OF STAFF RECOMMENDATION Staff is recommending first that the LCP amendment be rejected and then approval with suggested modifications. The proposed revisions to the City's Inclusionary Housing and Density Bonus regulations raise several issues. In particular, there is a general concern that in the provision of inclusionary housing or the granting of density bonuses that potential impacts to coastal resources could result (i.e., reduced parking requirements, building setbacks, impacts on public views, etc.) as a result of the incentives and concessions for housing developments that will be permitted. These could also result in potential impacts to sensitive habitat by reductions in building setbacks or buffers adjacent to environmentally sensitive habitat areas or encroachment into such areas. More intense development permitted as a result of density bonuses could also adversely affect public views (high rises) or public access (congestion or traffic). In particular, such types of development should be concentrated in areas able to support it and in close proximity to public transit to alleviate traffic congestion and impacts on public access. Another concern was that it appeared the City struck language from the ordinance that made it clear that environmentally constrained lands were to be deducted from the total acreage of a subject property such that these lands were not included in the density calculation because they are considered non-developable. Therefore, Suggested Modification #1 provides that for development located in the coastal zone, any offset provided pursuant to this section shall be consistent with the applicable provisions of the certified Carlsbad Local Coastal Program Land Use Plan(s) (with the exception of density). Similarly, Suggested Modification #2 provides that for development located in the coastal zone, (a) the requested density bonus does not exceed the density permitted under Government Code section 65915 and is consistent with all requirements of the certified Carlsbad Local Coastal Program Land Use Plan(s), with the exception of density, and (b) the requested incentive(s), concession(s), and/or waiver(s) or reduction(s) of development standards are consistent with all requirements of the certified Carlsbad Local Coastal Program Land Use Plan(s). Suggested Modification #3 makes it clear that all environmentally constrained lands identified as non-developable in the general plan, local coastal program, and zoning ordinance shall be excluded from the total area of the project site when calculating maximum density. A last concern is that the Coastal Act provides that if the density sought by the applicant cannot feasibly be accommodated on the site in a manner that is in conformity with Chapter 3, the permit issuing authority may reject such a request for a density bonus, etc. However, there is no language in the City's ordinance to this effect. Therefore Suggested Modification #4 identifies the necessary findings to reject the granting of an offset, incentive or concession to support a density bonus if it can't be found consistent with and adequate to implement the certified LUPs. The appropriate resolutions and motions begin on Page 4. The suggested modifications begin on Page 5. The findings for denial of the Implementation Plan Amendment, as submitted, begin on Page 8. The findings for approval of the Implementation Plan Amendment, if modified, begin on Page 13. City of Carlsbad LCPA 1-06D Density Bonus Page3 BACKGROUND The proposed revisions will implement several land use plan segments—all of which were approved in the years between 1980 through 1988 pursuant to the original certification of the LCP and various LCPAs. The proposed amendment will result in several changes to the density bonus provisions, along with necessary revisions to the inclusionary housing program. ADDITIONAL INFORMATION Further information on the LCP Amendment No. 1-06D (Density Bonus Revisions) may be obtained from Laurinda R. Owens. Coastal Planner, at (619) 767-2370. PART I. OVERVIEW A. LCP HISTORY Carlsbad Local Coastal Program (LCP) The City's certified LCP contains six geographic segments as follows: Agua Hedionda, Mello I, Mello II, West Batiquitos Lagoon/Sammis Properties, East Batiquitos Lagoon/Hunt Properties and Village Redevelopment. Pursuant to Sections 30170(f) and 30171 of the Public Resources Code, the Coastal Commission prepared and approved two portions of the LCP, the Mello I and II segments in 1980 and 1981, respectively. The West Batiquitos Lagoon/ Sammis Properties segment was certified in 1985. The East Batiquitos Lagoon/Hunt Properties segment was certified in 1988. The Village Redevelopment Area LCP was certified in 1988; the City has been issuing coastal development permits there since that time. On October 21, 1997, the City assumed permit jurisdiction and has been issuing coastal development permits for all remaining segments except Agua Hedionda. The Agua Hedionda Lagoon LCP segment remains as a deferred certification area until an implementation plan is certified. Portions of the City's zoning code comprise the bulk of the City's certified implementation plan. B. STANDARD OF REVIEW Pursuant to Section 30513 of the Coastal Act, the Commission may only reject zoning ordinances or other implementing actions, as well as their amendments, on the grounds that they do not conform with, or are inadequate to carry out, the provisions of the certified land use plan. The Commission shall take action by a majority vote of the Commissioners present. C. PUBLIC PARTICIPATION The City has held Planning Commission and City Council meetings with regard to the subject amendment request. All of those local hearings were duly noticed to the public. Notice of the subject amendment has been distributed to all known interested parties. /3 City of Carlsbad LCPA 1-06D Density Bonus Page 4 PART II. LOCAL COASTAL PROGRAM SUBMITTAL - RESOLUTIONS Following a public hearing, staff recommends the Commission adopt the following resolutions and findings. The appropriate motion to introduce the resolution and a staff recommendation are provided just prior to each resolution. I. MOTION: / move that the Commission reject the Implementation Program Amendment for the City of Carlsbad Implementation Plan Amendment #1-06D (Density Bonus Revisions), as submitted. Staff Recommendation Staff recommends a YES vote. Failure of this motion will result in certification of the Implementation Program Amendment as submitted and the adoption of the following resolution and findings. The motion passes only by an affirmative vote of a majority of the Commissioners present. Resolution I The Commission hereby denies certification of the Implementation Plan amendment to the City of Carlsbad's Local Coastal Program on the grounds that the amendment does not conform with, and is not adequate to carry out, the provisions of the certified land use plan. There are feasible alternatives or feasible mitigation measures available which would substantially lessen any significant adverse impacts which the approval would have on the environment. II. MOTION II / move that the Commission approve the City of Carlsbad Implementation Plan Amendment #1-06 D, if modified. Staff Recommendation Staff recommends a YES vote and the adoption of the following resolution and findings. An affirmative vote by a majority of the Commissioners present is needed to pass the motion. Resolution II The Commission hereby approves certification of the implementation amendment, as approved with suggested modifications, to the City of Carlsbad's Local Coastal Program on the grounds that the amendment does conform with, and is adequate to carry out, the provisions of the certified land use plan. There are no feasible alternatives or feasible mitigation measures available which would substantially lessen any significant adverse impacts, which the approval would have on the environment. City of Carlsbad LCPA 1-06D Density Bonus PageS PART III. SUGGESTED MODIFICATIONS 1. Sub-section G. shall be added to Section 21.85.100 dnclusionary Ordinance) of the Carlsbad Municipal Code and read as follows: G. For development located in the coastal zone, any offset provided pursuant to this section shall be consistent with the applicable provisions of the certified Carlsbad Local Coastal Program Land Use Plan(s) (with the exception of density). 2. Sub-section A.6. shall be added to Section 21.86.120 (Density Bonus Ordinance) of the Carlsbad Municipal Code and read as follows: (L. For development located in the coastal zone, (a) the requested density bonus does not exceed the density permitted under Government Code section 65915 and is consistent with all requirements of the certified Carlsbad Local Coastal Program Land Use Plan(s), with the exception of density, and (b) the requested incentive(s), concession^), and/or waiver(s) or reduction(s) of development standards are consistent with all requirements of the certified Carlsbad Local Coastal Program Land Use Plan(s). 3. Section 21.86.020 (Definitions) shall be revised as follows: {-1-8} 17. "Maximum allowable residential density yield" means the maximum density of the density range allowed by the residential general plan designation(s) applicable to a project site. All environmentally constrained lands identified as undevelopable in the general plan, local coastal program, and zoning ordinance shall be excluded from the total area of the project site when calculating maximum density, number of residential units permitted on the project site, which number of units is calculated by multiplying the net developable acreage of the project sito timos growth management control point(s) for the project site's applicable residential general plan designation(s). Within the coastal zone, all environmentally constrained lands identified pursuant to tho coastal zoning ordinances and local coastal programs aro considered to bo non developable and shall be deducted from the total number of areas of a subject property. 4. Section 21.86.130 (Required Findings) shall be added to the Density Bonus Ordinance of the Carlsbad Municipal Code as follows: A. For development located in the coastal zone, if the requested density bonus is not granted, the following finding shall be made and shall be based on substantial evidence in the record: the requested density bonus cannot feasibly be accommodated in a manner that is in conformity with the requirements of the certified Carlsbad Local Coastal Program. 15 City of Carlsbad LCPA 1-06D Density Bonus Page 6 PART III. FINDINGS FOR REJECTION OF THE CITY OF CARLSBAD IMPLEMENTATION PLAN AMENDMENT #1-06D. AS SUBMITTED A. AMENDMENT DESCRIPTION The primary purpose of the proposed amendment is to ensure that the existing Density Bonus and Inclusionary Housing provisions in the City's certified LCP (zoning ordinance) are revised so that they are consistent with recent changes to state law. In so doing, changes will be made to two chapters in the zoning code: 1) Chapter 21.85 (Inclusionary Housing) and Chapter 21.86 (Residential Density Bonus and Incentives or Concessions). State density bonus law requires the City to grant a density bonus if a developer seeks and agrees to provide a specified percentage of units for senior housing, or as affordable units to lower, very low or moderate-income households. On January 1, 2005, an amendment (SB 1818) to the State's density bonus law (Government Code Section 65915) became effective. Following the enactment of SB 1818, a second amendment was introduced (SB 435) to further clarify the provisions of State density bonus law. SB 435 was approved and became effective on January 1, 2006. The changes in the density bonus law, established by SB 1818 and SB 435, require a substantial amendment to the City's density bonus regulations to ensure consistency with State law. The primary changes in the State's density bonus law include: 1) a reduction from 15% to 10% for the affordable housing required in order to quality for a density bonus, 2) new provisions for granting additional density bonuses up to a specified maximum (35%), and 3) new criteria that define the number of concessions a project is entitled to based on the amount of affordable housing provided. Another change to the city's regulations that has resulted from the changes to State density bonus law is in how the density bonus regulations relate to the City's inclusionary housing requirements. Based on the analysis of SB 435, prepared by State Housing and Community Development dated 8/18/05, City staff is recommending that if an applicant seeks a density bonus per state law, then the affordable dwelling units provided to qualify for a state density bonus will not count toward satisfying the City's inclusionary housing requirements. In other words, in order to qualify for a state density bonus, the applicant will be required to provide affordable dwelling units in addition to those required by the inclusionary housing requirements. BACKGROUND In 1993, the Inclusionary Housing Ordinance became effective to implement the City of Carlsbad's Inclusionary Housing Program and the ordinance was incorporated into the LCP through Local Coastal Program Amendment (LCPA) No. 1-96G (August, 1996). The City's Inclusionary Housing Program requires that 15 percent of all residential units developed within Carlsbad be affordable to lower income households, specifically to those households with gross household incomes equal to or less than 80% of the San Diego County Area Median Income (AMI). City of Carlsbad LCPA 1-06D Density Bonus Page? In implementing the Inclusionary Housing Ordinance, the City found the proposed revisions would facilitate the practical implementation of the Inclusionary Housing Program. The City also found the proposed revisions to the Inclusionary Housing Ordinance would assist in the City's effort to qualify for self-certification of its housing program since the revisions parallel self-certification policies. Finally, the City found some alternatives for providing affordable housing, such as second dwelling units, have been the subject of much debate and required resolution through revisions to the Inclusionary Housing Ordinance. Regarding consistency with the Local Coastal Program, the City found the proposed revisions to inclusionary requirements are consistent with and will not change the regulations that guide development and protect the coastal environment. In LCPA #1-96G, the Commission approved new standards addressing affordable housing in all six certified land use plan segments, and modified several associated portions of the certified Implementation Program as well. The LUP amendments enabled the City to grant density increases above the maximum allowable under the certified LCP, along with other types of incentives. Two entirely new ordinances to implement its affordable housing program citywide were proposed to be added to the certified LCP through LCPA #1-96G. Chapter 21.85 (Inclusionary Housing) was proposed to ensure that master and specific planned communities and residential subdivisions provide a range of housing opportunities for all economic segments of the population by requiring that 15 percent of all approved residential units be restricted to and affordable to lower-income households. Chapter 21.85 as certified in 1996 did not itself authorize density increases or regulatory concessions to encourage the development of affordable housing, though it did provide for financial assistance and incentives in the form of modifications to the City's inclusionary housing requirements. It provided that density bonuses and other regulatory concessions would be available to eligible projects pursuant to Chapter 21.86 of the Zoning Code regarding the City's starutorily required density bonus program. Chapter 21.86 (Residential Density Bonus or In-Lieu Incentives) was proposed to promote housing in the City that is affordable to its low income and senior citizens and to provide density bonuses and other incentives to developers in order to implement the goals of the City's Housing Element and Sections 65915-65917 of the California Government Code. It provided the mechanism for providing density bonuses, regulatory concessions or financial assistance to eligible affordable housing developments pursuant to the requirements of Government Code Sections 65915-65918. The ordinance, as proposed, did not provide for a project's consistency with the certified LCP. The Commission adopted suggested modifications addressing several aspects of the overall amendment, to further define and clarify the various mandates for affordable housing programs, including senior housing, density bonuses, inclusionary housing and second dwelling units, as they relate to Coastal Act concerns. The Commission found that affordable housing projects that incorporate a density increase and incentives could be found consistent with the policies of Chapter 3 of the Coastal Act provided they are found consistent with all policies and ordinances of the LCP, with the exception of density. The Commission found densities beyond the otherwise maximum allowable density were acceptable because the other provisions of the certified LCP are sufficient to City of Carlsbad LCPA 1-06D Density Bonus PageS protect the coastal resources in Carlsbad. The City of Carlsbad adopted the Commission's suggested modifications. In November, 2000, the City's implementation plan was subsequently amended (LCPA #1-2000B/C) to authorize the City to provide discretionary "offsets", when necessary to enable residential projects to provide a "preferable product type or affordability" beyond what is required by the Inclusionary Housing Ordinance. The LCPA was approved with a suggested modification that required that any affordable housing project in the coastal zone be consistent with all certified local coastal program provisions, with the exception of density. The language clarified that any offsets granted in the coastal zone must also be consistent with all LCP provisions with the exception of the base density. An additional change in that LCPA amendment package was the definition of "basements" in the municipal code. B. FINDINGS FOR REJECTION Chapter 21.85 Inclusionary Housing and Chapter 21.86 Residential Density Bonus and Incentives or Concessions a) Purpose and Intent of the Ordinance. The purpose of this provision (Section 21.85.060 Inclusionary Housing) is to require that a minimum of fifteen (15%) 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. The purpose of this ordinance (Section 21.86 Residential Density Bonus and Incentives or Concessions) is to address the public good in the city by addressing housing which is appropriate for the needs of and affordable for all people who reside within the city. Among other needs, the City of Carlsbad needs housing that is 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. 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. It is also the purpose of this chapter to implement the goals and objectives of the housing element of the city's general plan. In addition, there are specific findings that 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. b) Major Provisions of the Ordinance. The major provisions of Chapter 21.86 addressing inclusionary housing include the details of approving an inclusionary credit which include, in part, affordable housing standards, calculating the required number of inclusionary units, alternatives to construction of inclusionary units, in-lieu fees, collection of fees, expiration of affordability tenure, enforcement, etc. The City's current in-lieu fee is $4,515 per market-rate dwelling unit. City of Carlsbad LCPA 1-06D Density Bonus Page 9 The proposed amendment revises the existing inclusionary housing provisions by changing the reference to granting of certain incentives to "granting of an inclusionary credit" in the purpose and intent of the ordinance. In addition, the terms "incentives or concessions" shall have the same meaning as defined in the ordinance. Other changes are proposed which include lowering the percentage for extremely low-income households. Pursuant to subsection (H), extremely low-income households means those households whose gross income is equal to or less than 30% of the median income for San Diego County as determined by the U.S. Department of Housing and Urban Development (HUD). Prior to changes in state law, this requirement was 35%. Other changes are also proposed. For example, all references to the term "incentive credit adjustment" will be changed to "inclusionary credit adjustment". Another important change is that language is being added to this section of the ordinance such that if an applicant seeks to construct affordable housing to qualify for a density bonus in accordance with the provisions of this chapter (Residential Density Bonus), those affordable dwelling units that qualify for a residential development for a density bonus are in addition to, and do not count toward satisfying, the inclusionary housing requirements of this chapter. The major provisions of Chapter 21.86 addressing Residential Density Bonus and Incentives or Concessions include the definitions related to density bonuses and incentives and in particular, the terminology for affordable housing and various income ranges that are described in the ordinance. Other provisions of the ordinance include the details of the inclusionary housing regulations. Specifically, the regulations for new residential construction, including the minimum number of units that need to be restricted as affordable, etc., are stated. The proposed amendment substantially revises the existing ordinance by making it consistent with State Law. Specifically, the definitions have been expanded. There is now a new definition for "extremely low-income", "rental" and "for-sale units" when previously the lowest income range was described as "very low-income". One of the changes is that previously a housing development was defined as a new residential development that consisted of a new residential development or conversion of existing residential buildings of five or more units. The definition has been expanded to allow more types of options available for developers to create affordable housing. For example, as revised, the ordinance now includes as options for new residential construction the following: a subdivision or common interest development consisting of 5 or more residential units or unimproved lots; or 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 structures(s) where the result of rehabilitation would be a net increase in available residential units. In addition, previously the ordinance required that density bonuses be granted for housing developments of a minimum of five units, if an applicant agreed to construct the following: A minimum of 20% of the total units are restricted and affordable to low- income households; or that 10% of the total units are restricted and affordable to very low-income households or that a minimum of 50% of the units are restricted to senior residents. The revised ordinance now provides that a density bonus can be provided to a housing development of at least five units where the applicant agrees to provide at least City of Carlsbad LCPA 1-06D Density Bonus Page 10 one of the following: a minimum of 10% of the units be restricted and affordable to lower-income households, a minimum of 5% of the total units of the housing development be restricted and affordable to very low-income households or that a senior housing development as defined elsewhere in the California Civil Code or mobile home park that limits residency based on age requirements for housing for older persons pursuant to sections in the California Civil Code; or a minimum of 10% of the total units in a common interest development be restricted and affordable to moderateTincome households, provided that all units in the development are offered to the public for purchase. The ordinance also contains a number of tables showing the percentage of low-income units proposed and the density bonus to be granted, etc. c) Adequacy of the Ordinance to Implement the Certified LUP Segments. The standard of review for LCP implementation submittals or amendments is their consistency with and ability to carry out the provisions of the certified Land Use Plan(s) (LUP) (i.e., Mello I, Mello II, Agua Hedionda, Village Redevelopment Area, East Batiquitos Lagoon and West Batiquitos Lagoon LUPs). Many policies of the respective LUPs for the City of Carlsbad contain policies that address protection of public views, preservation of community character and the provision of adequate parking. The proposed revisions to both the inclusionary housing and density bonus regulations raise several issues. Specifically, offsets or concessions granted to development as well as higher intensity of development typically approved through density bonuses could result in impacts to sensitive habitat/habitat management plan areas. In addition, higher intensity development should be concentrated in areas able to support such development and should be tied to alternative transit to alleviate any potential impacts on congestion and traffic and reduce impacts to public access. In the case of the proposed amendment addressing the inclusionary housing chapter of the City's Municipal Code, several minor changes are proposed to assure consistency with the density bonus regulations. With regard to the proposed changes to the chapter addressing density bonuses, several incentives or concessions will be permitted to encourage developers to provide affordable housing. Specifically, pursuant to a new proposed section of the zoning ordinance (Section 21.86.050), several incentives and concessions for housing developments will be permitted. According to the proposed language, the decision-making body may grant certain incentives and concessions provided that they are required in order to provide for the affordable housing. In addition, the granting of such incentives or concessions are permitted even if they would have a specific adverse impact upon public health and safety or the physical environment, or affect historical resources for which there is no feasible method to satisfactorily mitigate or avoid adverse impacts. The ordinance specifically indicates that the applicant shall receive the following number of incentives or concessions: 1. 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 City of Carlsbad LCPA 1-06D Density Bonus Page 11 limited to, a reduction in minimum lot size, setback requirements, and/or in the ratio of vehicular parking spaces that would otherwise be required. 2. 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; 3. Other regulatory incentives or concessions that result in identifiable, financially sufficient, and actual cost reductions. Section 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 standards(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 standards 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. The proposed revisions to the inclusionary housing and density bonus provisions of the City's certified LCP raise a few concerns. The first concern with regard to these revisions is that the granting of a density bonus above the density permitted in the zoning ordinance could, for example, adversely affect coastal resources by allowing a cPI City of Carlsbad LCPA 1-06D Density Bonus Page 12 development that could impact public views (high rises), or permitting a development that could adversely affect public access (congestion or traffic due to a higher intensity type of project). In addition, the proposed offsets or concessions that may be granted to encourage affordable housing could also result in adverse impacts to coastal resources. For example, if offsets, concessions or deviations were granted to new development there is the possibility that development could encroachment onto environmentally sensitive habitat areas (i.e., wetlands) or result in reduced buffers next to such habitat areas. If offsets were provided to the required height limit, coastal views may be impacted. If offsets were granted for a reduction in parking, potential impacts to public access could occur. Therefore, absent language that specifically states that the granting of density bonuses, as well as offsets or concessions, to encourage affordable housing, shall be consistent with the respective Land Use Plans, the LCP amendment cannot be found consistent with, or adequate to carry out the policies of the respective land use plans in the certified Carlsbad LCP. A second concern raised is that sub-section 18 of Section 21.86.010 of the density bonus regulations has been struck. This section of the City's Municipal Code basically stated that within the coastal zone, all environmentally constrained lands identified pursuant to the coastal zoning ordinances and local coastal programs are considered to be non- developable and shall be deducted from the total acreage of a property when calculating density. The purpose of this language is to assure that these lands are not calculated in the density requirements because they are considered non-developable. Absent language that makes this clear, the LCP amendment cannot be found consistent with, or adequate to implement the policies of the respective land use plans in the certified Carlsbad LCP. Another group of concerns are with regard to inclusionary housing credits adjustments, how the money on the for-sale programs gets reinvested, and the terms of affordability in the granting of density bonuses. With regard to the first issue, there is a feature of the City's inclusionary housing program that allows developers to received additional (more than one unit) credit for each of the affordable units provided, thereby reducing the total inclusionary housing requirement to less than 15% of all the residential units approved. A schedule is also provided illustrating how the credit can be earned. In response to a staff inquiry of how this credit works or examples of how it has been used, the City has indicated that the credit adjustment is based on a credit schedule which permits developers to reduce their total inclusionary housing obligation to less than 15% if the developers provide a more desirable product or otherwise make a proposal which goes above and beyond the intent of the ordinance in terms of product type or affordability of those units. However, the City has only given credit to one project so far; the project received a two-unit credit. The inclusionary requirement for the project was 12 units which were affordable to low-income households, but, the requirement was reduced to 10 affordable units because the developer agreed to make those ten units affordable to very low income households instead of low income. These adjustments seem appropriate for the City which will be constantly re-evaluating its housing efforts. With regard to the for-sale program, there is a concern that when units are developed, exceptions may be granted such that the units are not restricted and protected to remain affordable in perpetuity. However, the City has indicated that such monies get reinvested and the City currently requires that for-sale units be resold to other low income City of Carlsbad LCPA 1-06D Density Bonus Page 13 households during the first 15 years of their affordability term. Based on documentation in the City's submittal and regulations, rental units are restricted to a term of 55 years which is reasonable; however, the for-sale units could be sold at any time and the affordability provisions could be lost. This raises a concern that affordable housing provided in conjunction with density exceptions and deviations in the coastal zone may not be protected. City staff has indicated that they believe the proposed ordinance, as submitted, provides for a reasonable and beneficial affordable housing program. Specifically, the City has stated that currently for-sale units are required to be resold to other low income households during the first 15 years of their affordability terms. Because such units that have been constructed under this program are still in their initial 15-year terms for re-sale, the City does not have any information as to how these monies or subsidies are reinvested. However, they did indicate that there are some older units that do not have a 15-year requirement and which were sold at market rate. The funding goes back into the Housing Trust Fund (HTF) to reinvest in affordable housing, both for- sale and rental programs. The entire HTF is used as a source of funding for other affordable developments and their homebuyer assistance programs. To date, the City has spent about $27 million on affordable housing developments throughout the City. They also have about 1,800 units that have been built and another 700 currently under construction or in the planning process. Again, at this time, the City's efforts are noteworthy, but long-term affordability of this housing should be reviewed over time. PART IV. FINDINGS FOR APPROVAL OF THE CITY OF CARLSBAD IMPLEMENTATION PLAN AMENDMENT. IF MODIFIED The proposed Inclusionary Housing and Density Bonus Revisions will continue to maintain visual resources by assuring that the requested density bonus does not exceed the density permitted under Government Code Section 65915 and is consistent with all requirements of the City of Carlsbad's respective Land Use Plans other than density, and that the requested incentive(s), concession(s), and/or waiver(s) or reduction(s) of development standards are consistent with all requirements of the certified LUPs. As such, proposed development will continue to be provided consistent with the goals and policies of the certified LUPs. In addition, the proposed suggested modifications will also assure that the density bonus revisions will not adversely affect visual resources. As such, the proposed changes are consistent with, and adequate to carry out, the provisions of the certified Carlsbad Local Coastal Program Land Use Plans. With regard to consistency with policies in the LUP that address parking and coastal access, many of the policies of the various Land Use Plans for the City of Carlsbad contain similar recommendations and goals that state parking supplies need to be improved. While the proposed offsets, etc., do allow for reductions in development standards which may include a reduction in parking, etc., such offsets cannot be permitted if they will result in impacts to coastal resources (i.e., adversely affect parking in nearshore areas or usurp parking for beach visitors, etc.). Specifically, language has been added that states that for development located in the coastal zone, the requested density bonus does not exceed the density permitted under Government Code section 65915 and is consistent with all requirements of the City of Carlsbad's respective Land City of Carlsbad LCPA 1-06D Density Bonus Page 14 Use Plans other than density, and that the requested incentive(s), concession(s), and/or waiver(s) or reduction(s) of development standards are consistent with all requirements of the certified LUPs. In addition, in the granting of density bonuses, such development should be located near transit centers to foster less dependence on automobiles which will reduce traffic and congestion especially in light of the fact that such development proposals permit development to be much more intense. Language that encourages the siting of such development projects in close proximity to public transit and the trolley lines, which are ideal locations for the concentration of development and construction of affordable housing, is consistent with the public access policies of the City's certified LUP. The City's ordinance specifically states that inclusionary 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 and that they are compatible with adjacent land uses. Other language in the inclusionary housing regulations also states that alternative transit is considered as a basis for alternative options for providing on-site inclusionary housing. In other words, an offsite option might be approved if, among other measures, it provides location advantage such as proximity to jobs, schools, transportation and services, etc. Therefore, the City has adequately addressed this concern. As such, adequate parking will continue to be provided consistent with the goals and policies of the certified LUPs. The proposed density bonus revisions will not result in any adverse impacts to coastal resources. For example, through the granting of offsets, deviations or concessions, no reductions in setbacks will be permitted that would result in encroachment into environmentally sensitive habitat areas or reductions in buffers, for example, adjacent to wetlands, etc. In addition, to address the concern raised regarding the proposed removal of language from the density bonus regulations that struck language stating that in the coastal zone environmentally constrained lands are considered non-developable and are deducted from the total number of acres of a property, the City has proposed alternative language. Specifically, the City indicated that the way the code language was currently written, density is calculated the same inside and outside of the Coastal Zone (CZ). By stating that "in the Coastal Zone" environmentally constrained lands identified in the zoning ordinance and LCP are not included, it implies that when not in the CZ, those lands are included. The City has suggested a revision to clarify that the density is calculated the same inside the CZ as well as outside of the CZ. With the suggested revision, this language is found adequate to implement the certified LUPs. In addition, if the City is not able to grant a density bonus because it cannot be feasibly accommodated without violating LUP requirements other than density, a suggested modification has been added to make the requisite findings. The City will need to make a finding that states, based on the substantial evidence in the record, the requested density bonus cannot feasibly be accommodated in a manner that is in conformance with the requirements of the respective certified land use plans other than density. This is largely proposed for the City's benefit. With such language, the proposed density bonus revisions are found consistent with, and adequate to implement, the certified LUPs. City of Carlsbad LCPA 1-06D Density Bonus Page 15 In summary, the various housing projects that will be permitted through the Inclusionary Housing Density Bonus regulations will comply with the land use policies of their respective segments of the certified LCP. Therefore, the proposed LCP amendment will have no significant adverse impacts on coastal resources and the proposed amendment request is found to be consistent with the respective certified LUPs and are adequate to carry them out. PART IV. CONSISTENCY WITH THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEOA) Section 21080.5 of the California Environmental Quality Act (CEQA) exempts local government from the requirement of preparing an environmental impact report (EIR) in connection with its local coastal program. The Commission's LCP review and approval program has been found by the Resources Agency to be functionally equivalent to the EIR process. Thus, under CEQA Section 21080.5, the Commission is relieved of the responsibility to prepare an EIR for each LCP. Nevertheless, the Commission is required in an LCP submittal or, as in this case, an LCP amendment submittal, to find that the LCP, or LCP, as amended, does conform with CEQA provisions. The Commission finds that approval of the proposed ordinance amendments, as submitted, would result in significant impacts under the meaning of the California Environmental Quality Act. However, with the inclusion of the suggested modifications, implementation of the revised ordinances would not result in significant impacts to the environment within the meaning of the California Environmental Quality Act. Therefore, the Commission finds that approval of the LCP amendment will not result in any significant adverse environmental impacts. (G:\San Diego\Reports\LCPs\Carlsbad\CAR LCPA 1-06D Density Bonus fmal.doc) 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 City of Carlsbad LCPA 1-06D Density Bonus Page 16 RESOLUTION NO. 2006-065^ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF /' ' '' CARLSBAD, CALIFORNIA, ADOPTING A NEGATIVE •'"**- DECLARATION AND ADDENDUM FOR A GENERAL PLAN AMENDMENT, ZONE CODE AMENDMENT AND LOCAt COASTAL PROGRAM AMENDMENT; AND APPROVING SAID GENERAL PLAN AMENDMENT IN CONCEPT AND LOCAL COASTAL PROGRAM AMENDMENT. CASE NAME: DENSITY BONUS AMENDMENT CASE NO.: GPA 05-14/ZCA 04-10/LCPA 04-17 The City Council of the City of Carlsbad, California, does hereby resolve as follows: WHEREAS, the Planning Commission did on February 1, 2006, hold a duly noticed public hearing as prescribed by law to consider the Negative Declaration and. Addendum, General Plan Amendment (GPA 05-14), Zone Code Amendment (ZCA 04-10) and Local Coastal Program Amendment (LCPA 04-17) to amend the term "density bonus program' in the Glossary of the Land Use Element of the General Plan, and amend the density bonus and Inclusionary housing regulations in the Zoning Ordinance to achieve consistency between the General Plan, Zoning Ordinance, Local Coastal Program, and State Law. WHEREAS, the Planning Commission adopted Planning Commission Resolutions No. 5878, 5880, and 6022 recommending to the City Council that the Negative Declaration and Addendum be adopted, and GPA 05-14rfnd LCPA 04-17 be approved; and WHEREAS, the City Council did on the Jl»t day of March 2006 hold a duly noticed public hearing as prescribed by law to consider the Negative Declaration and Addendum, ,General Plan Amendment and Local Coastal Program Amendment, and; WHEREAS, at said public hearing, upon hearing and considering all testimony < and arguments, if any, of all persons desiring to be heard, the' City Council considered all factors, relating to the Negative Declaration and Addendum, General Plan Amendment and Local Coastal Program Amendment; NOW, THEREFORE, the City Council of the City of Carlsbad, California does hereby resolve as follows:EXHIBIT #1 Resolutions of Approval LCPAJ1-06D City of Carlsbad Density ^ Bonus Revisions California Coastal Commission City of Carlsbad LCPA 1-06D Density Bonus Page 17 i 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 1. That the above recitations are true and correct. 2. That the findings of (he Planning Commission in Planning- ^Commission Resolutions No. 5878, 5880 and 6022 constitute the findings of the City Council in this rnafSr 3. That the Negative Declaration and Addendum are adopted as shown in Planning Commission Resolution No. 5878 on file with the City Cleric and incorporated herein by reference. 4. That the amendment to the General Plan (GPA 05-14), as shown in Planning Commission Resolution No. 6022, on file with the City Clerk and incorporated herein by reference, is hereby accepted, approved in concept, and shall formally be approved with GPA Batch No. 1 of 2006. 5. That the amendment to the Local Coastal Program (LCPA 04-17), Is approved as shown in Planning Commission Resolution No. 5880, on file with the City Cleft and incorporated herein by reference. 6. That the approval of LCPA 04-17 shall not become effective until it is' approved by the California Coastal Commission and the California Coastal Commission's approval becomes effective. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Carlsbad on the _ 2l3t day of March 2006, by the following vote, to wit AYES: Council Members Lewis, Hall, Kulchin, Packard, Sigafoose NOES: None ABSENT: None (SEAL) -2- City of Carlsbad LCPA 1-06D Density Bonus Page 18 1 PLANNING COMMISSION RESOLUTION NO. 5880.. . 2 A RESOLUTION OF THE PLANNING COMMISSION OF THE •, *' "' '' • 3 CITY OF CARLSBAD, CALIFORNIA, RECOMMENDING "**x APPROVAL OF A LOCAL ' COASTAL PROGRAM 4 AMENDMENT TO AMEND THE DENSITY BONUS AND - INCLUSIONARY HOUSING REGULATIONS IN THE 3 ZONING ORDINANCE TO ENSURE THE DENSITY BONUS 6 REGULATIONS ARE CONSISTENT WITH STATE LAW, AND THAT THE DENSITY BONUS AND INCLUSIONARY 7 HOUSING REGULATIONS ARE COMPATIBLE. CASE NAME: DENSITY BONUS AMENDMENT 8 CASE NO.: LCPA 04-17 9 WHEREAS, the Planning Director has prepared an amendment to Title 21 of the 10 Municipal Code (Zoning Ordinance) relating to density bonus and inclusionary housing ._ regulations; and 13 WHEREAS, the Zoning Ordinance is the implementing ordinance for the City of 14 Carlsbad Local Coastal Program; and '5 WHEREAS, California State law requires that the Local Coastal Program and Zoning Ordinance be in conformance, and therefore, an amendment to the Local Coastal 17 Program is required in conjunction with an amendment to the Zoning Ordinance (implementing 18 ordinance) to ensure consistency between the two documents; and 20 WHEREAS, the City .of Carlsbad, "Applicant," has filed a verified application 21 for an amendment to the Local Coastal Program; and 22 , WHEREAS, said verified application constitutes a request for a Local Coastal 23 Program Amendment as shown on Exhibit "X," dated February I, 2006, attached to Planning 24 . • • . -^Commission Resolution No. 5879 and incorporated herein by reference, as provided for in 25 Public Resources Code Section 30514 and Article 15, Subchapter'2, Chapter 8, Division 5.5 of20 2i Title 14 of the California Code of Regulations (California Coastal Commission Regulations); and 28 WHEREAS, the Planning Commission did on the 1st day of February 2006, hold a duly noticed public hearing as prescribed by law to consider said request; and City of Carlsbad LCPA 1-06D Density Bonus Page 19 WHEREAS, at said public hearing, upon hearing and considering all testimony and arguments, if any, of all persons desiring to be heard, analyzing the information submitted by 3 • .., ' •••**•» staff, and considering any written comments received, the Planning Commission considered all4 5 factors relating to the Local Coastal Program Amendment; and 6 WHEREAS, in accordance with California Coastal Commission requirements, the 7 Local Coastal Program Amendment was subject to a six-week public review period, starting on * March 11, 2005 and ending on April 22, 2005, and the Planning Commission considered all comments received, if any. 10 NOW, THEREFORE, BE IT HEREBY RESOLVED by the Planning Commission as follows: • 13 A) That the foregoing recitations are true and correct. 14 B) That based on the evidence presented at the public hearing, the Planning Commission hereby RECOMMENDS APPROVAL of DENSITY BONUS15 AMENDMENT - LCPA 04-17, based on the following findings: Finding: 1. That the proposed Local Coastal Program Amendment meets the requirements of, and is 18 in conformity with, the policies of Chapter 3 of the Coastal Act and all applicable policies of the Mello I, Mello U, Agua Hedkrada Lagoon, East Batiquitos Lagoon and West " Batiqoitos Lagoon segments of the Carlsbad LdCal Coastal Program not being amended 2Q by this amendment, in that it ensures consistency with the Carlsbad Zoning Ordinance, and does not conflict with any coastal zone regulations, land use 21 designations or policies, with which development must comply. 22 2. That the proposed amendment to the Carlsbad Local Coastal Program is required to ensure consistency with the proposed Zone Code Amendment (ZCA 04-10). 24 . -^ 25 >> 26 ••• 27 28 PCRESONO. 5880 -2- 1 2 3 4 5 6 7 8 9 10 11 12 n 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 City of Carlsbad LCPA 1-06D Density Bonus Page 20 PASSED, APPROVED AND ADOPTED at a regular meeting of the Planning Commission of the City of Carlsbad, California, held on the 1st day of February J066,.|ythe following vote, to wit: AYES: Chairperson Montgomery, Commissioners Baker, Cardosa, Segall, and Whitton NOES: ABSENT: Commissioner Dominguez and Heineman ABSTAIN: . MARTELL B. MONTI CARLSBAD PLANNING CON ATTEST: DONNEU Assistant Planning Director PCRESON0.5880 -3- City of Carlsbad LCPA 1-06D Density Bonus Page 21 21.85.010 Chapter 21.85 INCLUSIONARY HOUSING Sections: 21.85.010 Purpose nod intent 21.85.020 Definitions. 21.85.030 Inclusionary housing requirement, 21.85.035 New master plans or specific- plans. 21.85.040 Affordable housing standards. 21.85.050 Calculating the required number of inclusionary units. 21.85.060 Inclusionary credit adjustment. 21.85.070 Alternatives to construction of inclusionary units. 21.85.080 Combined inclusionary homing projects. 21.85.090 Creation ofinclusionary units not required. 21.85.100 Offsets to the cost of affordable housing development 21.85.110 In-lieu fees. 21.85.120 Collection of fees. 21.85.130 Preliminary project application and review process. 21.85.140 Affordable housing agreement as a condition of development 21.85.145 Agreement processing fee. 21,85.150 Agreement amendments. 21.85.155 Expiration of affordabUity tenure. 21.85.160 Pre-existing approvals. 21.85.170 Enforcement 21.85.180 Savings clause. 21.85.190 Separability of provisions. 21.85.010. Purpose and Intent. The purpose and intent of this chapter is as fol- lows: A. It is an objective of the city, as established by the housing element of the city's general plan, to en- sure that all residential development, including all master planned and specific planned communities and a)l residential subdivisions provide a range of housing opportunities for all identifiable economic segments of the population, including households of lower and moderate income. It is also the policy of the city to: 1. Require that a minimum of fifteen percent of all approved residential development be restricted to and affordable to tower-income households; subject to adjustment based on. the granting of an inclusion- ary credit; 2. Require that for those 'developments which provide ten or more rails affordable to lower-income households, at least ten percent of the lower-income units stall have three or more bedrooms; 3. Under certain conditions, allow alternatives to on-site construction as a means of providing af- '' Portable units; and 4. In specific cases, allow inclusionary re- quirements to be satisfied through the payment of an in-lleu fee as an alternative to requiring inclusionary units to be constructed. B. It is the purpose of this chapter to ensure the implementation of the city objective and policy stated in subsection A. C. Nothing in this chapter is intended to create a mandatory duty on the part 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. (Ord. NS-794 § 2, 2006; Ord.NS-535§l (part), 2000) 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 thirty percent times thirty per- cent of the county median income, adjusted for household size; 792-1 EXHIBIT #2 Inclusionary Housing Regulations (full text of existing regulations with revisions) LCPA #1-060 City of Carlsbad Density £ Bonus Revisions California Co»«ul Caimtnim 31 City of Carlsbad LCPA 1-06D Density Bonus Page 22 21.85.020 2. Very low-income, rental and for-sale units: the product of thirty percent times fifty percent of the county median income, adjusted for household size-, 3. Low-income, for-sale units: the product of thirty percent times seventy percent of the county median income, adjusted for household size; and 4. Low-income, rental units: the product of thirty percent times sixty percent of the county me- dian 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 estab- lishes, among other things, the number of required inclusionary units, the unit sizes, location, afforda- bility 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, al- lowable housing expenses include loan principal and interest at the time of initial purchase by the home- buyer, allowances for property and mortgage insur- ance, 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 bousing unit and land and facilities associated therewith, including any separately charged fees, utility charges, or ser- vice charges assessed by the lessor and payable by the tenant. D. "Affordable housing policy team" shall con- sist of the community development director, planning director, housing and redevelopment director, admin- istrative services director/finance director and a rep- resentative 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 asso- ciated wilh'tone 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 mean- ing as defined in Section 21.86.020(AX7)ofthis title. H. "Extremely low-income household" means those households whose gross income is equal to or less than thirty percent of the median income for San Diego County as determined by the U.S. Department of Housing and Urban Development. 1. "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 pro- vision 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 21.90.04S of this title. K. "Incentives or concessions" shall have the same meaning as defined in Section 21.86.020(AX7) of this title. L. "Inclusionary credit" means a reduction in the inclusionary bousing requirement granted in re- turn for the provision of certain desired types of af- fordable housing or related amenities as determined by the city council. M. "Inclusionary housing project" means a new residential development or conversion of existing residential buildings which has at least fifteen percent of the total units reserved and made affordable to lower-income households as required by this chapter. N. "Inclusionary unit" means a dwelling unit thatwill be offered for rent or sale exclusively to and which shall be affordable to lower-income house- holds, 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 ap- (Cadttud Sl|*. No. 16. M6)792-2 City of Carlsbad LCPA 1-06D Density Bonus Page 23 21.SS.020 plications and tecertifications for the tenant based rental assistance program, or its successor. P. "Low-income household" means those households whose gross income is more than fifty percent but does not exceed eighty percent of the median income for San Diego County is determined annually by Uie U.S. Department of Housing and Ur- ban Development Q. "Lower-income household'' means low- income, very low-income and extremely low-income households, whose gross income does not exceed eighty percent of the median income for San Diego County as determined annually by the U.S. Depart- ment 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 hous- ing programs. S. "Offsets" means concessions or assistance to include, but not be limited to, direct financial assis- tance, density increases, standards modifications or any other financial, land use, or regulatory conces- sion which would result in an identifiable cost reduc- tion 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, mobile home developments and conversions of apartments to con- dominiums, 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 deter- mined 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. To- tal residential units are composed of both market-rate units and inclusionary units. W.'i • "Very low-income household" means a household earning a gross income equal to fifty per- cent or less of the median income for San Diego County as determined annually by the U.S. Depart- ment of Housing and Urban Development. (Qrd. NS-794 § 3,2006: Ord. NS-535 § 1 (part),MOO) 21.85.030 Incluiionary housing requirement. The inclusionary housing requirements of this chapter shall apply as follows: A. This chapter shall apply to all residential market-rate dwelling units resulting from new con- struction of rental and "for-sale" projects, as well as the conversion of apartments to condominiums. B. For any residential development or develop- ment revision of seven or more units, not less than ' fifteen percent of the total units approved shall be constructed and restricted both as to occupancy and offordability to lower-income households. C. For those developments which are required to provide ten or more units affordable to lower- income households, at least ten percent of the lower- income units shall have three or more bedrooms. D. This chapter shall not apply to the following: 1. Existing residences which are altered, im- proved, restored, repaired, expanded or extended, provided that the number of units is not increased, except that this chapter shall pertain to the subdivi- sion of land for the conversion of apartments to con- dominiums; 2. Conversion of a mobile home park pursuant to Section 21.37.120 of the code; 3. The construction of a new residential struc- ture which replaces a residential structure that was destroyed or demolished within twoyears prior to the application fora building*permit for the new residen- tial structure, provided that the number of residential units is not increased from the number of residential units of the previously destroyed or demolished resi- dential structure; 4. Any residential unit which is accessory as defined in Section 21.04.020 of this code; or 5. Second dwelling units not constructed to ful- Till inclusionary housing requirements and developed in accordance with Section 21.10.015 of this code; 792-3 (Otti4Sopp.No.l6.M6) 33 City of Carlsbad LCPA 1-06D Density Bonus Page 24 21.85.030 6. Any project or portion of a project which is a commercial living unit as defined in Section 21.04.093 of this code; and 7. Those residential units which have obtained affordable housing approvals prior to the effective date of the ordinance codified in this chapter, as set forth in Section 21.8S.160 of this chapter. (Ord. NS- 535 § 1 (part), 2000) 21.85.035 New master plans or specific plans. New master plans and specific plans shall submit an inclusionary housing plan as follows: A. All master plans and specific plans approved on or after the effective date of the ordinance codi- fied in this chapter are required by this chapter to provide an inclusionary housing plan within the mas- ter plan or specific plan document. This inclusionary homing plan will include appropriate text, maps, ta- bles, or figures to establish the basic framework for implementing the requirements of this chapter. It shall establish, as a minimum, but not be limited to, the following: 1. The number of market-rate unite in the mas- ter plan or specific plan; 2. The number of required inclusionary units for lower-income households over the entire master plan or specific plan; 3. The designated sites for the location of the inclusionary units, including but not limited to any sites for locating off-site inclusionary housing projects or combined inclusionary housing pro- jects; 4. A general provision stipulating that an af- fordable housing agreement shall be made a condi- tion of all future discretionary permits for develop- ment within the master or specific plan area such as tentative maps, parcel maps, planned unit develop- ments and site development plans. The provision shall establish that all relevant terms and conditions of any affordable housing agreement shall be filed and recorded as a restriction on the project as a whole and those individual lots, units or projects which ore designated as inclusionary units. The affordable housing agreement shall be consistent with Section 21.85.140 of this chapter. B. The -location and phasing of inclusionary dwelling units may be modified as a minor amend- ment to the master plan pursuant to Section 21.38.120 of this title if the city council authorizes such modifications when approving the master plan. C. All existing master plans or specific plans proposed for major amendment, pursuant to Sec- tion 21.38.120 of this code, shall incorporate into the amended master plan or specific plan document an inclusionary housing plan, consistent with this section of this chapter. (Ord. NS-535 § 1 (part), 2000) 21.85.040 Affordable bousing standards. The affordable housing standards are as follows: A. All residential developments are subject to and 'hiust satisfy the inclusionary housing require- ments of this chapter, notwithstanding a developer's request to process a residential development under other program requirements, laws or regulations, in- cluding 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. B. Whenever reasonably possible, inclusionary units should be built on the residential development project site. C. The required inclusionary units shall be con- structed concurrently with market-rate units unless both the final decision-making authority of the city and developer agree .within th£ affordable bousing agreement to an alternative schedule for develop- ment D. Inclusionary rental units shall remain re- stricted and affordable to the designated income group for fifty-five years. In addition to the income of a targeted group, limitations on assets may also be used as a factor in determining eligibility for rental or for-sale units. Notwithstanding anything to the con- trary in this chapter, no inclusionary unit snail be <CarUb«iSW.No K.J-06)792-4 City of Carlsbad LCPA 1-06D Density Bonus Page 25 21.85.040 rented for an amount which exceeds ninety percent of the actual rent charged for a comparable market unit in the same development, if any. E. After the initial sale of the inclusionary for- sale units at a price affordable to the target income level group, inclusionary for-sale units shall remain affordable to subsequent income eligible buyers pursuant to a resale restriction with a term of thirty years or for-sale units may be sold at a market price to other than targeted households provided that the sale shall result in the recapture by the city or its designee of a financial interest in the units equal to the amount of subsidy necessary to make the unit affordable to the designated income group and a proportionate share of any appreciation. Funds re- captured by the city shall be used in assisting other eligible households with home purchases at afford- able prices. To the extent possible, projects using for-sale units to satisfy inclusionary requirements shall be designed to be compatible with conven- tional mortgage financing programs including sec- ondary market requirements. F. Inclusionary units should be located on sites that are in proximity to or will provide access to em- ployment opportunities, urban services, or major roads or other transportation and commuter rail fa- cilities and that are compatible with adjacent land uses. G. The design of the inclusionary units shall be reasonably consistent or compatible with the design of the total project development in terms of appear- ance, materials and finished quality. H. Inclusionary projects shall provide a mix of number of bedrooms in the affordable dwelling units . in response to affordable housing demand priorities of the city. 1. No building permit shall be issued, nor any. development approval granted for a development which does not meet the requirements of this chapter. No inclusionary unit shall be rented or sold except in accordance with this chapter. (Ord. NS-794 § 4, 2006; Old. NS-535 § 1 (part), 2000) 21.85.050 Calculating the required number of inclusionnry units. Subject to adjustments for an inclusionary credit, the required number of lower-income inclusionary units shall be fifteen percent of the total residential units, approved by the final decision-making author- ity. If the inclusionary units are to be provided within an off-site combined or other project, (he required number of lower-income inclusionary units shall be fifteen percent of the total residential units to be pro- vided both on-site and/or off-site:- Subject to the' maximum density allowed per the growth manage- ment control point or per specific authorization granted by the planning commission or city council, fractional units for both market rate and inclusionary units of 0.5 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 - fifteen percent inclusionary units plus eighty-five percent market- rate units. If the final decision-making authority ap- proves one hundred total residential units, then the inclusionary requirement equals fifteen percent of the "total" or fifteen units (100 x .15 - 15). The allow- able market-rate units -would be eighty-five percent of the "total" or eighty-five units. Example 2: If the inclusionary units are to be pro- vided off-site, 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 one hundred market-rate units are approved, then this total is divided by .85 which pro- vides a total residential unit count (100 + .85 - 117). The fifteen percent requirement is applied to this "to- tal" (one hundred seventeen units) which equals the inclusionary unit requirement (117 x. 15 «17.6 units). (Ord.NS-794 § 5,2006: Ord.NS-535 § 1 (part), 2000) 21.85.060 Incliulonary credit adjustment Certain types of affordable housing are relatively more desirable in satisfying the city's stale-mandated affordable housing requirement as well as the city's 792-5 (CuM»ISt*p.Nii.l6,M6> 35 City of Carlsbad LCPA 1-06D Density Bonus Page 26 21.85.060 housing element goals, objectives and policies, and these may change over time. To assist the city in providing this housing, devel- opers may receive additional (more than one unit) credit for each of such units provided, thereby reduc- ing the total inclusionary housing requirement to less than fifteen 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. (Ord. NS-794 § 6,2006: Ord.NS-535 §1 (part). 2000) 21.85.070 Alternatives to construction of inclusionary units. Notwithstanding any contrary provisions of this chapter, at the sole discretion of the city council, the city may determine that an alternative to the con- struction of new inclusionary units is acceptable. A. The city council may approve alternatives to the construction of new inclusionary units where the proposed alternative supports specific housing ele- ment policies and goals and assists the city in meet- ing its state housing requirements. Such determina- tion shall be based on findings that new construction would be infeasible or present unreasonable hard- ship in light of such factors as project size, site con- straints, market competition, price and product type disparity, developer capability, and financial subsi- dies available. Alternatives may include, but not be limited to, acquisition and rehabilitation of afford- able units, conversion of existing market units to affordable units, construction of special need; hous- ing projects or programs (shelters, transitional hous- ing, etc.), and the construction of second dwelling units. B. Second dwelling units constructed to satisfy an inclusionary housing requirement shall be rent restricted to affordable rental rates, and renters shall be income-qualified, as specified in the applicable affordable housing agreement. In no event shall a developer be allowed to construct more than a total of fifteen second dwelling units in any given devel- opment, master plan, or specific plan, to satisfy an inclusionary requirement. C. Contribution to a special needs housing pro- ject or program may also be an acceptable alternative based upon such findings. The requisite contribution shall be calculated in the same manner as an in-lieu fee per Section 21.85.110. (On). NS-535 § I (part), 2000) 21.85.080 Combined inclusionary housing projects. An affordable housing requirement may be satis- fied with off-site construction as follows: A. When it can be demonstrated by a developer that the goals of this chapter and the city's housing element would be better served by allowing some or all of the inclusionary units associated with one resi- dential project site to be produced and operated at an alternative site or sites, the resulting linked inclu- sionary project site(s) is a combined inclusionary housing project. B. It is at the sole discretion of the city council to authorize the residential site(s) which form a com- bined inclusionary housing project. Such decision shall be based on findings that the combined project ' represents a more effective and feasible means of V implementing this chapter and the goals of the city's housing element. Factors to be weighed in this de- termination include: the feasibility of the on-site op- tion considering project size, site constraints, compe- tition from other projects, difficulty in integrating due to significant price and product type disparity, and lack of capacity of the on-site development entity to deliver affordable housing. Also to be considered are whether the off-site option offers greater feasibil- ity and cost effectiveness, particularly regarding po- tential local public assistance and the city's afford- able housing financial assistance policy, location ad- vantages such as proximity to jobs, schools, transpor- tation, and services, diminished impact on otfaer ex- isting developments, capacity of the development entity to deliver the project, and satisfaction of multi- ple developer obligations that would be difficult to satisfy with multiple projects. C. All agreements between parties to form a combined inclusionary housing project shall be made a part of the affordable housing agreement required ' (Ootob*) SUIT- No. It. 146)792-6 City of Carlsbad LCPA 1-06D Density Bonus Page 27 21.85.080 for the site(s), which affordable housing agreement(s) shall be approved by council. D. Location of the combined inclusionary hous- ing project is limited to sites within the same city quadrant in which the market-rate units are located, or sites which are contiguous to the quadrant in which the market-rate units are proposed. (Ord. NS- 535 §) (part), 2000) 21.85.090 Creation of inclusionary units not required. Inclusionaiy units created which exceed the final requirement for a project may, subject to city council approval in the affordable housing agreement, be utilized by the developer to satisfy other inclusionary requirements for which it is obligated or market the units to other developers as a combined project sub- ject to the requirements of Section 21.85.080. (Ord. NS-535§1 (part), 2000) 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 pro- jects to provide a preferable product type or afforda- bility 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 devel- opment, 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, devel- opers may moke application for such programs. Evaluation of requests for offsets shall be based on the effectiveness of the offsets in achieving a prefer- able product type and/or affordability objectives as set forth within the housing element, the capability of the development team; the reasonableness of devel- opment costs and justification of subsidy needs; and the extent to which other resources are used to lever- age the requested offsets. Nothing in this chapter es- tablishes, directly or through implication, a right to receive any offsets from the c ity or any other party or agency to enable the developer to meet the obliga- tions ^established by this chapter. Any offsets ap- proved by the city council and the housing afforda- bility to be achieved by use of those offsets shall be set out within die affordable housing agreement pur- suant to Section 21.8S.140 of this chapter or, at the city's discretion in a subsequent document. Further- more, developers are encouraged to utilize local, state or federal assistance, when available, to meet the af- fordability standards set forth in Sections 21.85.030 and 21.85.040 of this chapter. (Ord. NS-794 § 7, 2006: Ord. NS-535 § 1 (part), 2000) 21.85.110 In-liea fees. Payment of a fee in lieu of construction of afford- able units may be appropriate in the following cir- cumstances: 1 A. For any residential development or develop- ment revision of less than seven units, the inclusion- ary requirements may be satisfied through the pay- ment to die city of an in-lieu fee. •* B. The in-lieu fee to be paid for each market- rate dwelling unit shall be fifteen percent of the sub- sidy needed to make affordable to a lower-income household one newly constructed, typical attached- housing unit. This subsidy shall be based upon the city council's determination of the average subsidy that would be required to make affordable typical, new two-bedroom/one bath and three-bedroom/two- bath for-sale units and rental units, each with aji as- sumed affordability tenure of at least fifty-five years. C. The dollar amount and method of payment of the in-lieu fees shall be fixed by a schedule adopted, from time to time, by resolution of the city council. Said fee shall be assessed against the market-rate lots/units of a development. D. All in-lieu fees collected hereunder shall be deposited in a housing trust fund. Said fund shall be administered by the city and shall be used only for the purpose of providing funding assistance for the provision of affordable housing and reasonable costs of administration consistent with the policies and programs contained in the housing element of the general plan. E. At the discretion of the city council, where a developer is authorized to pay a fee in lie^of devel- 792-7 31 21.S5.110 City of Carlsbad LCPA 1-06D Density Bonus Page 28 opraent, an irrevocable dedication of land or oilier non-monetary contribution of a value not less than the sum of die otherwise required in-lieu fee may be accepted as an alternative to paying the in-lieu lee if it is determined that the non-monetary contribution will be effectual in furthering the goats and policies of the housing element and this chapter. The valua- tion of any land offered in-lieu shall be determined by an appraisal nude by an agent.mutually agreed upon by the city and the developer. Costs associated with the appraisal shall be borne by the developer. F. Where a developer is authorized to pay a fee in lieu of development of affordable housing units, any approvals shall be conditioned upon a require- ment to pay the in-lieu fee in an amount established by resolution of the city council in effect at the time of payment. 0. As an alternative to paying an in-lieu fee(s), inclusionary housing requirements may be satisfied either through a combined inclusionary housing pro- ject, pursuant to Section 21.85,080 of this chapter or new construction of inclusionary units subject to ap- proval of the final decision-making authority. (Ord. NS-S35 § I (part), 2000) 21.85.120 Collection of fees. All fees collected under this chapter shall be de- posited into a housing trust fund and shall be ex- pended only for the affordable housing needs of lower-income households, and reasonable costs of ' administration consistent with the purpose of this chapter. (Ord. NS-535 § I (part), 2000) 21.85.130 Preliminary project application and review process. The preliminary project application/review process shall be as follows: A. A developer of a residential development not subject to a master plan or specific plan, proposing an inclusionary housing project shall have an ap- proved site development plan prior to execution of an affordable housing agreement for the project. The developer may submit a preliminary application to the housing and redevelopment director prior to the submittal of any formal applications for such housing development. The preliminary application shall in- clude the following information if applicable: 1. A brief description of the proposal including the number of inclusionary units proposed; 2. The zoning, general plan designations and assessors parcel numbers) of the project site; 3. A site plan, drawn to scale, which includes: building footprints, driveway and narking layout, building elevations, existing contours and proposed grading; and 4. A letter identifying .what specific offsets and/or adjustments are being requested of the city. Justification for each request should also be included. B. Within thirty days of receipt of the prelimi- nary application by the planning director for projects not requesting offsets or inclusionary credit adjust- ments, 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 proce- dures 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 Califor- nia codes to which reference is made in this chapter and all required application forms. (Ord.NS-794 § t, 2006; Ord. NS-53S § 1 (part), 2000) 21.85.140 Affordable noosing agreement as a condition of development. This chapter requires the following: A. Developers subject to this chapter shall demonstrate compliance with this chapter by exe- cuting an affordable housing agreement prepared by the city housing and redevelopment director and submitted to the developer for execution. Agree- ments which conform to the requirements of this section and which do not involve requests for off- sets 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 792-8 City of Carlsbad LCPA 1-06D Density Bonus Page 29 21.85.140 and/or an inclusionnry credit, other than those per- mitted 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 bousing agreement with approved site development plan shall be recorded against the entire develop- ment, including market-rale lots/units and the rele- vant terms and conditions therefrom filed and sub- sequently recorded as a separate deed restriction or regulatory agreement on the affordable project indi- vidual 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 fu- ture time. The affordable housing agreement shall bind all future owners and successors in interest for the term of years specified therein. B. An affordable housing agreement, for which the inclusionary bousing requirement will be satisfied through new construction of inclusionary units, either on-site or off-site, shall establish, but not be limited to, the following: 1. The number of inclusionary dwelling units proposed, with specific calculations detailing the ap- plication of any incrusionary credit adjustment; 2. The unit square footage, and number of bed- rooms; , 3. The proposed location of the inclusionary units; 4. Amenities and services provided, such as daycare, after school programs, transportation, job training/employment services and recreation; 5. Level and tenure of affordability for inclu- sionary units; 6. Schedule for production of dwelling units; 7. Approved offsets provided by the city; 8. Where applicable, requirements for other documents to be approved by the city, such as mar- keting, leasing and management plans; financial as- sistance/loan documents; resale agreements; and monitoring and compliance plans; 9. Where applicable, identification of the af- fordable housing developer and agreements specify- ing their role and relationship to the project C. An affordable housing agreement, for which the inclusionary housing requirement will be satisfied through payment to the city of any in-lieu contribu- tions other than fee monies, such as land dedication, shall include the method of determination, schedule and value of total in-lieu contributions, D. An affordable housing agreement will not be required for projects which will be satisfying their inclusionary housing requirement through payment to the city of an in-lieu fee. (Ord. NS-794 §§ 9, 10, 2006; Ord. NS-535 § 1 (part), 2000) 21.85.145 Agreement processing fee. The city council may establish by resolution, fees to be paid by the developer at the tirrte of preliminary project application to defray the city's cost of prepar- ing and/or reviewing all inclusionary housing agree- ments. (Ord, NS-535 § 1 (part), 2000) 21.85.150 Agreement amendments. Any amendment to an affordable housing agree- ment shall be processed in the same manner as an original application for approval, except as author- ized in Section 21.85.035(8). Amendments to afford- able housing agreements initially approved prior to the effective date of me ordinance codified in this chapter shall be entitled to consideration under the ordinance provisions superseded by the ordinance codified in this chapter. (Ord. NS-53S § 1 (part), 2000) ». 11.85.155 Expiration of afTordability tenure. The city or its designer 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 for rental projects. The first right of refusal to purchase the rental project shall be submitted in writing to the housing and rede- velopment director. Within ninety days of its receipt, the city shall indicate its intent to exercise the first 792-9 (CMlM9l».No.U.M6> 21.85.155 City of Carlsbad LCPA 1-06D Density Bonus Page 30 right of refusal for the purpose of providing afford- able housing. (On). NS-535 § 1 (part), 2000) 21.85.160 Pre-existing approvals. Any residential developments for which a site de- velopment plan for the affordable housing compo- nent of the development was approved prior to the effective date of the ordinance codified in this chap- ter shall be subject to the ordinance in effect at die time of the approval. (On). NS-535 § 1 (part), 2000) 21.85.170 Enforcement Enforcement provisions are as follows: A. The provisions of this chapter shall apply to all developers and their agents, successors and as- signs proposing a residential development governed by this chapter. No building permit or occupancy permit shall be issued, nor any entitlement granted, for a project which is not exempt and does not meet the requirements of this chapter. All inclusionary units shall be rented or owned hi accordance with this chapter. B. The city may institute any appropriate legal actions or proceedings necessary to ensure compli- ance with this chapter, including but not limited to actions to revoke, deny or suspend any permit or de- velopment approval. C. Any individual who sells or rents a restricted unit in violation of the provisions of this chapter shall be required to forfeit all monetary amounts so ob- tained. Such amounts shall be added to the city's housing trust fund. (Ord. NS-535 § 1 (part), 2000) 21.85.180 Savings clause. All code provisions, ordinances, and parts of ordi- nances in conflict with the provisions of this chapter are repealed. The provisions of this chapter, insofar as they are substantially the same as existing code provisions relating to the same subject matter shall be construed as restatements and continuations thereof and not as new enactments. With respect, however, to violations, rights accrued, liabilities accrued, or ap- peals taken, prior to the effective dale of the ordi- nance codified In this chapter, under any chapter, ordinance, or part of an ordinance shall be deemed to remain in full force for the purpose of sustaining any proper suit, action, or other proceedings, with respect to any such violation, right, liability or appeal. (Ord. NS-535 § I (part), 2000) 21.85.190 Separability of provisions. If any provision of this chapter or the application thereof to any person or circumstances is held inva- lid, the remainder of the chapter and the application of the provision to other persons not similarly situ- ated or to other circumstances shall-not be affected thereby. (Ord. NS-535 § 1 (part), 2000) 792-10 City of Carlsbad LCPA 1-06D Density Bonus Page 31 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 IS 19 20 2! 2 1z 23 24 25 27 2 ORDINANCE NO. NS-794 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY 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 65915 THROUGH 65917, AND THAT THE DENSITY BONUS AND INCLUSIONARY HOUSING REGULATIONS DO NOT CONFLICT. CASE NAME: DENSITY BONUS AMENDMENTS CASE NO.: ZCA 04-10 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 .85.01 0 Purpose and intent. 21.85.020 Definitions. 21 .85.030 Inclusionary housing requirement 21 .85.035 New master plans or specific plans. 21 .85.040 Affordable housing standards. 21 .85.050 Calculating the required number of inclusionary units. 21 .85.060 Inclusionary credit adjustment. 21 .85.070 Alternatives to construction of inclusionary units. 21 .85.080 Combined inclusionary housing projects. 21 .85.090 Creation of inclusionary units not required. 21 .85.1 00 Offsets to the cost of affordable housing development. 21.85.110 In-lieufees. 21.85.120 Collection of fees. • 21 .85.1 30 Preliminary project application and review process. 21 .85. 1 40 Affordable housing agreement as a condition of development. 21 .85.145 Agreement processing fee. 21.85.150 Agreement amendments. 21 .85.1 55 Expiration of affordability tenure. ,21.85.160 Pre-existing approvals. 21.85.170 Enforcement. ' 21.85.180 Savings clause. ' 21.85.190 Separability of provisions. SECTION 2: That Section 21.85.010.A.1 of the Carlsbad Municipal Cods 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: EXHIBIT #3 Inclusionary Housing Regulations (partial text of revised sections only)/ Density Bonus Regulations (full text with revisions) LCPA#106D City of Carlsbad Density 4K Bonus Revisions California Coastal Commluion City of Carlsbad LCPA 1-06D Density Bonus Page 32 1 21.85.020 Definitions. Whenever the following terms are used in this chapter, they shall have the meaning 2 established by this section: •. ' .' A. "Affordable housing" means housing for which the allowable housing expanses 3 paid by a qualifying household shall not exceed a specified fraction of the county median income, adjusted for household size, as follows: 4 1. Extremely low-income, rental or for-sale units: the product of 30% times 30% of the county median income, adjusted for household size; 5 2. Very low-income, rental and for-sale units: the product of 30% times 50% of the county median Income, adjusted for household size; 6 3. Low-income, for-sale units: the product of 30% times 70% of the county median income, adjusted for household size; and 7 4. Low-income, rental units: the product of 30% times 60% of the county median Income, adjusted for household size. 8 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. 9 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 10 schedule. C. "Allowable housing expense" means the total monthly or annual recurring11 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, 12 allowances for property and mortgage insurance, property taxes, homeowners association dues and a reasonable allowance for utilities as defined by the Code of Federal Regulations13 (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 14 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, utility15 charges, or service charges assessed by the lessor and payable by the tenant. D. "Affordable housing policy team" shall consist of the community development16 director, planning director, housing and redevelopment director, administrative services director/finance director, and a representative of the city attorney's office. 1 E. "Combined inclusionary housing project" means separate residential development sites which are linked by a contractual relationship such that some or all of the18 Inclusionary units which are associated with one development site are produced and operated „ at a separate development sile or sites. F. "Conversion" means the change of status of a dwelling unit from a purchased ?f| 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 22 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. 23 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 24 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 25 the city of Carlsbad. J. "Growth management control point" shall have the same meaning as provided in 26 Chapter 21.90, Section 21.90.045 of this title. K. "Incantives or concessions" shall have the same meaning as defined in Section 27 21.86.020.A.7 of this title. 28 City of Carlsbad LCPA 1-06D Density Bonus Page 33 1 L. "Inclusionary credit" means a reduction in the inclusionary housing requirement granted in return for the provision of certain desired types of affordable housing/or related 2 amenities as determined by the city council. '.-.', ' M. "Inclusionary housing project" means a new residential development" or 3 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. 4 N. 'Industonary 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 5 chapter. O. "Income' means any monetary benefits that qualify as income in accordance with 6 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 7 Program, or its successor. P. 'Low-income household" means those households whose gross income is more 8 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 9 Development.Q. "Lower-income household" means tow-income, very low-income and extremely 10 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 U.S. Department of11 Housing and Urban Development R. "Market-rate unit* means a dwelling unit where the rental rate or sales price is not12 restricted either by this chapter or by requirements imposed through other local, state, or federal affordable housing programs. 13 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,14 or regulatory concession which would result in an identifiable cost reduction enabling the provision of affordable housing.15 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 or16 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. —18 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. Departmenty of Housing and Urban Development, and adjusted for family size. ... V. Total residential units" means the total units approved by the final decision/u making authority. Total residential units are composed of both market rate units and inclusionary ,21 units'W. "Very low-income household* means a household earning a gross income equal 22 to fifty (50%) percent or less of the median income for San Diego County as determined annually by the U.S. Department ot Housing and Urban Development. 23 SECTION 4: That Section 21.85.040.A of the Carlsbad Municipal Code Is 24 'amended to read as follows: A. All residential developments are subject to and must satisfy the inclusionary 26 housing requirements of this chapter, notwithstanding a developer's request to process a residential development under other program requirements, laws or regulations, including but 27 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 28 City of Carlsbad LCPA 1-06D Density Bonus Page 34 1 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 2 satisfying, the inclusionary housing requirements of this chapter. '.'.', ' 3 SECTION 5: That Section 21.85.050 of the Carlsbad Municipal Code is amended 4 to read as follows: 5 21.85.050 Calculating the required number of Inclusionary units. Subject to adjustments for an Inclusionary credit, the required number of lower-income 6 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 7 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 and/or offsite. 8 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 9 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 10 the market rate nor the inclusionary unit count will be increased to the next whole number. Example 1: Total residential units = 15% Inclusionary units plus 85% Market rate units. If H the final decision making authority approves 100 total residential units, then the Inclusionary requirement equals 15% of the Total* or 15 units (100 x .15 = 15). The allowable market rate 12 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 13 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 this14 total is divided by .85 which provides a total residential unit count (100 + .85 = 117). The 15% requirement is applied to this Total* (117 units) which equals the inclusionary unit requirement15 (117 x.15 = 17.6 units). 16 SECTION 6: That Section 21.85.060 of the Carlsbad Municipal Code is amended to read as follows: 18 21.85.060 Inclusionary credit adjustment. * ,o 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, 2Q objectives and policies, and these may change over time. To assist the city in providing this housing, developers may receive additional (more than 21 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 22 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. 23 SECTION 7: That Section 21.85.100 of the Carlsbad Municipal Code is amended 24 'to read as follows: 25 21.85.100 Offsets to the cost of affordable housing development. 26 The city shall consider making offsets available to developers when necessary to enable residential projects to provide a preferable product type or affordabillty in excess of the 27 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, 28 City of Carlsbad LCPA 1-06D Density Bonus Page 35 1 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,10 provide 2 offsets, developers may make application for such programs. Evaluation of requests for pffs&ts shall be based on the effectiveness of the offsets in achieving a preferable product type JrtO/or 3 affordabllity 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 4 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 5 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 affordabllity to be achieved 6 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, 7 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. 8 SECTION B: That Section 21.85.130.B of the Carlsbad Municipal Code Is9 amended to read as follows:10 B. Within thirty days of receipt of the preliminary application by the planning director11 for projects not requesting offsets or indusionary credit adjustments, or ninety days for projects requesting offsets or indusionary credit adjustments the department shall provide to an12 applicant, a letter which identifies project Issues of concern, the offsets and Indusionary credit adjustments that the community development director can support when making a13 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 related14 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 is16 amended to read as follows: A, Developers subject to this chapter sjjall 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 which1 conform to the requirements of this section and which do not involve requests for offsets and/or _n an indusionary credit, other than those permitted by right, if any, shall be reviewed by theM affordable housing policy team and approved by the community development director or his 21 designee. Agreements which involve requests for offsets and/or an indusionary credit, gther than those permitted by right, shall require the recommendation of the housing commission and 22 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 23 recorded against the entire development, including market-rate tots/units and the relevant terms and conditions therefrom filed and subsequently recorded as a-separate deed restriction or 24 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 25 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 26 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 27 shall bind all future owners and successors In Interest for the term of years specified therein. 28 City of Carlsbad LCPA 1-06D Density Bonus Page 36 1 SECTION 10: That Section 21.85.140.B.1 of the Carlsbad Municipal Code is 2 amended to read as follows: •_ ,1 ' 3 1. The number of inclusionary dwelling units proposed, with specific calculations detailing the application of any inclusionary credit adjustment; 4 SECTION 11: That Chapter 21.86 of the Carlsbad Municipal Code is amended to 5 read as follows: 6 Chapter 21.86 7 RESIDENTIAL DENSITY BONUS AND INCENTIVES OR CONCESSIONS 8 Sections: 21.86.010 Purpose and intent. 9 21.86.020 Definitions. 21.86.030 Inclusionary housing. 10 21.86.040 Density bonus for housing developments. 21.86.050 Incentives and concessions for housing developments. 11 21.86.060 Waiver or reduction of development standards. 21.86.070 Density bonus and incentives for condominium conversions. 12 21.86.080 Housing developments with child day care centers. 21.86.090 Density bonus housing standards.13 21.86.100 Affordability tenure. 21.86.110 Application process. 14 21.86.120 Findings for approval. 21.86.130 Density bonus housing agreement 15 21.86.140 Agreement processing fee. 21.86.150 Separability of provisions.lu 21.86.010 Purpose and intent.17 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 that18 city. Among other needs, there is in Carlsbad a need for housing affordable to lower-income g households and senior citizens. Therefore, it is in the public interest for the city to promote thely construction of such additional housing through the exercise of its powers and the utilization of _0 Its resources. B. It is the purpose of this chapter to provide a means for granting density bonuses 21 and incentives or concessions to developers for the production of housing affordable to lower- and moderate-income households, and senior Citizens. 22 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. • 23 D. It is the purpose of this chapter to implement Sections 6S915 through 65917 of the California Government Code. 24 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 2j city or its employees is created by this chapter that would not arise independently of the provisions of this chapter. 25 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 27 21.86.020 Definitions. 28 City of Carlsbad LCPA 1-06D Density Bonus Page 37 1 A. Whenever the following terms are used in this chapter, they shall have the meaning established by this section: , 2 1. "Affordable housing' means housing for which the allowable housing expanses paid by a qualifying household shall not exceed a specified fraction of the county mfaian 3 income, adjusted for household size, as follows: a. Extremely low-income, rental and for-sale units: the product of 30% times 30% of 4 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 5 county median income, adjusted for household size. c. Low-income, rental units: the product of 30% times 60% of the county median 6 income, adjusted for household size. d. Low-income, for-sale units: the product of 30% times 70% of the county median 7 income, adjusted for household size. e. Moderate-income, for-sale units: allowable housing expenses shall not be less 8 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. 9 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 10 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 11 and a reasonable allowance for utilities as defined by the Cods of Federal Regulations (24CFR982). For a rental unit, allowable housing expenses include rent and a utility allowance 12 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 13 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. 14 3. "Child day care center" shall have the same meaning as defined in Section 21.83.020.0 of this title.15 4. "Common interest development" means any of the following (as defined In Section 1351 of the California Civil Code):16 a. A community apartment project, b. A condominium project.17 c. A planned development. .- d. A stock cooperative. —18 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. 21 7. "Density bonus dwelling units" means those residential unijs granted pursuant to the provisions of this chapter, which are above the maximum allowable residential density of the 22 project site. 8. "Density bonus housing agreement' means a legally binding agreement between 23 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 24 and density bonus dwelling units, the unit sizes, location, aftordabillty tenure, terms and conditions of affordability and unit production schedule. 25 9. "Development standard" means site or construction conditions/requirements that apply to a housing development pursuant to any ordinance, general plan element, master or 25 specific plan, or other city requirement, law, policy, resolution or regulation. 10. 'Extremely low-Income household" means those households whose gross 27 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. 28 -7- City of Carlsbad LCPA 1-06D Density Bonus Page 38 1 11. "Housing development* means one or more groups of projects for residential units, consisting of the following: / 2 a. The construction of 5 or more residential units; or ' , b. A subdivision or common interest development consisting of 5 or more residential 3 units or unimproved lots; or c. A project to either substantially rehabilitate and convert an existing commercial 4 building to residential use, or substantially rehabilitate an existing two-family or multiple-family dwelling structure^), where the result of rehabilitation would be a net Increase in available 5 residential units. 12. "Incentives or concessions" means such regulatory incentives or concessions as 6 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 7 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 8 housing affordable to the designated Income group or qualified (senior) resident. 13. "Income" means any monetary benefits that qualify as income in accordance with 9 the criteria and procedures used by the city of Carlsbad housing and redevelopment department for the acceptance of applications and recertificatiohs for the Tenant Based Rental Assistance 10 Program, or its successor. 14. "Low-Income household" means those households whose gross income is more 11 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. 12 is. "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 13 San Diego County as determined annually by the U.S. Department of Housing and Urban Development.14 18. "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 federal15 affordable housing programs. 17. "Maximum allowable residential density" means the maximum density of the16 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 Is17 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^nd Urban Development.18 19. "Qualifying resident" means a resident as defined in Chapter 21.84 of this title and Section 51.2 of the California Civil Code. ly 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)/u 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 22. "Very tow-Income household" means a household earning a gross income equal to 50% or less of the mediar income for San Diego County as determined annually by the U.S. 23 Department of Housing and Urban Development. 24 21.86.030 Inclusionary housing. ' A. All housing development projects are required to provide affordable housing units 25 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 26 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 Inclusionary Housing requirements of 27 chapter 21.85. 28 -8- City of Carlsbad LCPA 1-06D Density Bonus Page 39 i 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 21.86.040 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 toast 5 units seeks and agrees to construct'aflSast 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 tbe percentages established in Section 21.88.040A 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 WITH 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.S 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 WITH UNITS AFFORDABLE TO VERY LOW-INCOME HOUSEHOLDS Percentage of Very Low-Income Units 5 6 7 B Percentage of Density Bonus to be Granted 20 22.5 25 27.5 -9- City of Carlsbad LCPA 1-06D Density Bonus Page 40 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 9 10 11 30 32.5 35 • . " ' 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 TO MODERATE-INCOME HOUSEHOLDS Percentage of Moderate-Income Units 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 Percentage of Density Bonus to be Granted 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 •* 27 28 29 30 31 32 33 34 35 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. It 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. -10- City of Carlsbad LCPA 1-06D Density Bonus Page 41 i 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 C. When an applicant lor a tentative subdivision map, parcel map, or other housing development approval donates land to the city, as provided for in this subsection, trie applicant shall be entitled to a density bonus lor the entire development, as follows: ', . *• -'Kifci-i TABLE D DENSITY BONUS FOR LAND DONATION 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 Percentage of Density Bonus to be Granted 15 16 17 18 19 20 21 22 23 24 • 25 26 27 28 29 30 31 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: m 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, orhousing 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. -11- S>\ City of Carlsbad LCPA 1-06D Density Bonus Page 42 1 f. The transferred land and the affordable units shall be subject to a deed restriction ensuring continued affordabillty of the units consistent with Section 21.86.100, which shall be 2 recorded on the property at the time of dedication. '.-.'. ' g. The land is transferred to the city or to a housing developer approved by thlrcity. 3 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 4 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 5 specified in this section, the city council may grant the requested additional density bonus, subject to the following: 6 1. The project meets the requirements of this chapter. 2. The additional density bonus shall be considered an incentive, in accordance 7 with Section 21.86.050 of this chapter. 3. The city council may require some portion of the additional density bonus units 8 to be designated as target dwelling units. G. The city council may grant a proportionately lower density bonus than what is 9 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 10 included when determining the number of housing units required by this chapter to be reserved for income restricted households. 11 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.12 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.13 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. 14 L. A density bonus housing agreement shall be made a condition of the discretionary permits (i.e., tentative maps, parcel maps, planned unit developments,15 condominium permits, site development plans and redevelopment permits) for all housing developments that request a density bonus and incentives or concessions. The relevant terms16 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 the17 location of target dwelling units. The density bonus housing agreement shall be consistent with ... Section 21.86.130 of this chapter. .lo |Q 21.86.050 Incentives and concessions for housing developments. A. When an applicant requests a density bonus pursuant to Section 21.86.040.A, ,0 the decision-making body shall grant incentives or concessions, subject to the following: 1. An applicant shall submit a proposal lor any specific incentives or concessions 2| 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: 23 a. The incentive or concession is not required in order to provide for affordable housing as defined in Section 21.86.020.A.1. 24 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 25 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 26 defined in paragraph (2) of subdivision (d) of Section 65569.5 of the California Government Code, a "specific, adverse impact* means a significant, quantifiable, direct, and unavoidable 27 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. 28 •12- City of Carlsbad LCPA 1-06D Density Bonus Page 43 1 3. The applicant shall receive the following number of incentives or concessions: a. One incentive or concession for projects that include at least 10% pf the total 2 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. 3 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 4 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 5 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. 6 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 7 architectural design requirements (excluding State Building Standards), that results in identifiable, financially sufficient, and actual cost reductions. A reduction/modification to 8 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 9 required. b. Approval of mixed use zoning in conjunction with the housing development if j) 10 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 1' the housing development and the existing or planned future development in the area where the proposed project will be located. 12 c. Other regulatory incentives or concessions that result in identifiable, financially sufficient, and actual cost reductions. 13 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. 14 5. The applicant shall show that the requested incentive(s) or concessions) will result in identifiable, financially sufficient, and actual cost reductions. 21.86.060 Waiver or reduction of development standards. 16 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 17 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. 18 1. The applicant shall show that the requested waiver or reduction of development standards is necessary to make the housing units economically feasible. l' Z. 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; 21 and •*B. The decision-making body shall grant the requested waiver or reduction of 22 development standards, unless, based upon substantial evidence, any of the following findings are made in writing: 23 1. The waiver or reduction of development standards is not necessary to make the housing units economically feasible. 24 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 2 j incentives or concessions permitted by this Chapter. 3. The requested waiver or reduction of development standards would have a 26 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 27 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 28 -13- City of Carlsbad LCPA 1-06D Density Bonus Page 44 1 California Government Code, a "specific, adverse impact* means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified written public healtji or safety 2 standards, policies, or conditions as they existed on the date the application* was deemed complete. '"'*- 3 21.86.070 Density bonus and incentives for condominium conversions. 4 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 5 financial value, as set forth in Section 21.86.050.A., if the applicant agrees to provide the following: 6 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 7 2. A minimum of 15% of the total units of the proposed condominium conversion project as restricted and affordable to lower-income households. 8 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 9 proposed for conversion. C. For purposes of this section, "other incentives of equivalent financial value" shall 10 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 11 conversion project. D. The density bonus dwelling units shall not be included when determining the12 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 13 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 14 proposal to convert apartments to condominiums. G. An applicant/developer 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 other16 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 17 discretionary permits (tentative maps, parcel maps, planned unit developments and condominium permits) for all condominium conversion gcoposals that request a density bonus or18 other incentives. The relevant terms and conditions of the density bonus housing agreement |g shall be filed and recorded as a deed restriction on those Individual lots or units of a projectly 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. ... 21.86.080 Housing developments with child day care centers. A. When an applicant proposes to construct a housing development that conforms 22 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 23 aPPly:1. The decision-making body shall grant either of the following: 24 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 25 b. An additional incentive or concession that contributes significantly to the economic feasibility of the construction of the child day care center. 26 2. The decision-making body shall require, as a condition of approval of the housing development, that the following occur: 27 28 -14- 27 28 City of Carlsbad LCPA 1-06D Density Bonus Page 45 1 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 2 remain affordable, pursuanttoSection21.86.lOO; and , ." ' b. Of the children who attend the child day care center, the children of very10W-, 3 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-incoms 4 households pursuant to Section 21 .S6.040.A. 3. Notwithstanding any requirement of this section, the decision-making body shall 5 not be required to provide an additional density bonus, incentive or concession tor a child day care center if it finds, based on substantial evidence, that the community has an adequate 6 number of child day care centers. 7 21.86.090 Density bonus housing standards. A. Required target dwelling units shall be constructed concurrent with market rate 8 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 9 schedule for development. B. Whenever feasible, target dwelling units and density bonus dwelling units should 10 be built on-site (within the boundary of the proposed development) and, whenever reasonably possible, be distributed throughout the project site. 11 c. Whenever feasible, target dwelling units should be located on sites that are in proximity to, or will provide access to, employment opportunities, urban sen/ices, or major roads 12 or other transportation and commuter rail facilities (i.e., freeways, bus lines) and that are compatible with adjacent land uses. 13 D. Whenever feasible, target dwelling units should vary In size and number of bedrooms, in response to affordable housing demand priorities of the city. 14 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 15 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 or16 compatible with the design of the total project development in terms of appearance, materials and finished quality.17 F. No building permit shall be Issued, nor any development approval granted, for a development which does not meet the requirements gj this chapter. No target dwelling unit 18 shall be rented or sold except In accordance with this chapter. G. Upon the request of the applicant, the parking ratio (inclusive of handicap and19 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 E, 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. 24 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. 25 TABLES 26 | PARKING RATIO FOR HOUSING DEVELOPMENTS Dwelling Unit Size 0-1 bedrooms 2-3 bedrooms On-Site Parking Ratio 1 space per unit Z spaces per unit -15- City of Carlsbad LCPA 1-06D Density Bonus Page 46 j 1 4 or more bedrooms I 2.5 spaces per unit 2 21.86.100 Affordability tenure. ', ." ' A. All low- and very low-income dwelling units that qualified the housing projecTfbr a 3 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 4 assistance program, mortgage insurance program, or rental subsidy program. B. All moderate-income dwelling units directly related to the receipt of a density 5 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 6 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. 7 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: 8 a. Upon resale, the sefler of the unit shall retain the value of any improvements, the down payment, and the seller's proportionate share of appreciation. 9 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 10 in subdivision (e) of Section 33334.2 of the Health and Safety Code that promote homeownership. 11 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 12 moderate-income household, plus the amount of any down payment assistance or mortgage assistance. If upon resale the market value la lower than the Initial market value, then the value 13 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 appreciation14 shall be equal to the ratio of the initial subsidy to the fair market value of the home at the time of Initial sale.15 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 16 subsidizing the cost of construction, the target dwelling unit(s) shall remain affordable to the designated income group for at least 30 years.17 C. For rental projects, the city or its designee shall have a one-time first right of refusal to purchase any project containing affordable^inlts offered for sale at the end of the18 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,ly the city shall Indicate Its Intent to exercise the first right of refusal for the purpose of providing affordable housing. _. 21.86.110 Application process. A. The granting oi a density bonus, incentive or concession, pursuant to this 22 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, -j 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 24 a density bonus, incentive(s) or concession(s). The preliminary application should include the following information: 25 1. A brief description of the proposal including the number of target dwelling units and density bonus units proposed; 26 2. The zoning, general plan designations and assessors parcel numbers) of the project site; 27 3. A site plan, drawn to scale, which includes: building footprints, driveway and parking layout, existing contours and proposed grading; and 28 -16-n City of Carlsbad LCPA 1-06D Density Bonus Page 47 1 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 2 city. .; ' 5. The planning department shall provide to an applicant/developer, a lettefThat 3 identifies project Issues of concern and the procedures for compliance with this chapter. C. Formal application. A request for a density bonus, incentlve(s) or concession(s), 4 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 5 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.). 6 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 7 council shall have the authority to make the final decision on any discretionary permits related to the project. 8 2. The following information shall be included with the development applteaton(s) required for the project: 9 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; 10 b. A letter signed by the present owner stating what specific density bonus, incentives, or concessions (e.g., standards modifications, additional density bonus, or fee11 waiver, etc.) are being requested from the city; c. A detailed vicinity map showing the project location and such details as the 12 location of the nearest commercial retail, transit stop, potential employment locations, park or recreation facilities or other social or community service facilities; 13 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 14 supporting plans per the application submittal requirements; e. In the case of a request for any incentive(s) or ooncession(s), a pro forma for the15 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,16 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 17 development standard being waived or reduced will have the effect of precluding the construction of the development at the densities or witryhe concessions or incentives permitted18 by this chapter. . g. In the case of a condominium conversion request, a report documenting thely 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 2, iii. t vacancy information for each unit throughout the prior year. ,2 21.86.120 Findings for approval. A. ' When a project involves a request for a density bonus, incentive(s) or 2-j concession^), the following findings shall be made as part of the approval of the development application(s) required for the project: 24 1. The project is consistent with the provisions of this ahapter. 2. The requested incentive(s) or concession(s) will result in Identifiable, financially 2j sufficient, and actual cost reductions; 3. In cases where an applicant requests a waiver or reduction of development 26 standards, pursuant to section 21.86.080, the requested waiver or reduction of development standard(s) is necessary to make the housing units economically feasible. 27 4. The requested Incentive(s) or concession(s), and/or waiver(s) or reductlon(s) of development standards, if any, will not result in an adverse impact, as defined in paragraph (2) 28 City of Carlsbad LCPA 1-06D Density Bonus Page 48 1 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 2 Historical Resources; or, if the request will result in an adverse impact, then the request maybe approved if the following finding is made: ~*~~ 3 a. There is no feasible method to satisfactorily mitigate or avoid the specific adverse impact, 4 5. In cases where an applicant requests to convert apartment units tc condominiums, the condominium conversion project shall not result in a reduction in the 5 affordable housing stock for lower-income groups, as of most recent Inventory. 6 21.86.130 Density bonus housing agreement. A. Applicants/developers, requesting a density bonus, incentives or concessions 7 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 8 submitted to the developer for signature. B. Density bonus housing agreements for projects involving a request for direct 9 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. 10 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 11 entire development, including market-rate lots/units; and the relevant terms and conditions therefrom filed and recorded as a deed restriction or regulatory agreement on those individual 12 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 agreement13 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 of14 building permits for such tots 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:17 1. The number of density bonus dwelling units granted; 2. The number and type (e.g., restricted tojpwer- or moderate-income households)18 of target dwelling units proposed; . 3. The unit size(s) (square footage) of target dwelling units and the number of1 bedrooms per target dwelling unit; ., 4. The proposed location of the target dwelling units;1 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 22 target units; and 8. Where applicable, tenure and conditions establishing rules and procedures for 23 qualifying tenants, setting rental rates, filling vacancies, and operating and maintaining units for rental target dwelling units. 24 9. Where applicable, requirements for other documents to be approved by the city, such as marketing, leasing and management plans; financial assistance/loan documents; resale 25 agreements; and monitoring and compliance plans. 25 21.86.140 Agreement processing fee. A. The city council may establish by resolution, fees to be paid by the applicant to 27 defray the city's cost of preparing and/or reviewing all density bonus housing agreements. 28 -18- City of Carlsbad LCPA 1-06D Density Bonus Page 49 1 21.86.150 Separability of provisions. A. If any provision of this chapter or the application thereof to any, person or 2 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 therelSy: SECTION 12: That the findings of the Planning Commission as set forth in 4 Planning Commission Resolution No. 5879 constitute the findings of the City Council. 5 6 7 8 in 9 /// 10 ///11 /// 12 /// 13 /// 14 ///15 ///16 ///17 18 '" " 19 "' 20 '" 21 '" 22. '" 23 "' 24 "' 25 '" 26 '" 27 '" 28 •19- City of Carlsbad LCPA 1-06D Density Bonus Page 50 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 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 if 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 shatt 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 2151. 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: Hone ABSENT: Council Member Hall ABSTAIN: None APPROVED AS TO FORM AND LEGALITY•" ' ATTEST: -20- This space is for the County Clerk's Filing Stamp PROOF OF PUBLICATION (2010 & 2011 C.C.P.) STATE OF CALIFORNIA County of San Diego I am a citizen of the United States and a resident of the County aforesaid: I am over the age of eighteen years and not a party to or interested in the above- entitled matter. I am the principal clerk of the printer of North County Times Formerly known as the Blade-Citizen and The Times- Advocate and which newspapers have been adjudicated newspapers of general circulation by the Superior Court of the County of San Diego, State of California, for the City of Oceanside and the City of Escondido, Court Decree number 171349, for the County of San Diego, that the notice of which the annexed is a printed copy (set in type not smaller than nonpariel), has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to-wit: April 25th, 2008 Proof of Publication of NOTICE OF PUBLIC HEARING NOTICE IS HEREBY GIVEN to you, be-. cause your interest may be affected, that theCity Council of the City of Carlsbad will holda public hearing at the Council Chambers, 1200Carlsbad Village Drive, Carlsbad, California, at 6:00p.m. on Tuesday, May 6, 2008, to consider adoptingthe California Coastal Commission's suggested mort-ifications to Local Coastal Program Amendment (LC-PA) 04-17 (Density Bonus Amendment); said sug-gested modifications consist of an amendment to theInclusionary Housing and Density Bonus regulationsin the Zoning Ordinance (ZCA 04-10A/LCPAD4-17A). Those persons wishing to speak on this proposal arecordialfy invited to attend the public hearing. Copiesof the agenda bill will be available on and after May 2,2008. If you have any questions, please call JenniferJesser in the Planning Department at (760) 602-4637. The time within which you may judicially challengethis Zone Code Amendment and/or Local CoastalProgram Amendment, if approved, is established bystate law and/or city ordinance, and is very short. Ifyou challenge the Zone Code Amendment and/or Lo-cal Coastal Program Amendment in court, you maybe limited to raising only those issues you or some-one else raised at the public hearing described in thisnotice or in written correspondence delivered to theCity of Carlsbad. Attn: City Clerk's Office, 1200 Carls-bad Village Drive, Carlsbad, CA 92008, at or prior tothe public hearing. CASE FILE: ZCA 04-10A/LCPA 04-17A OASf3UGC; NAME: DENSITY BONUS AMENDMENTIESTED MODIFICATIONS PUBLISH: APRIL 25, 2008 NCT 2143941 CITY OF CARLSBADCITY COUNCIL I certify (or declare) under penalty of perjury that the foregoing is true and correct. Dated at SAN MARCOS California This 25th, day of April, 2008 Jane Allshouse NORTH COUNTY TIMES Legal Advertising The Coast News Decreed A Legal Newspaper by the Superior Court of San Diego County. Mail all correspondence regarding public notice advertising to The Coast News, P.O. Box 232-550, Encinitas, CA 92023 (760) 436-9737 Proof of Publication STATE OF CALIFORNIA, ss COUNTY OF SAN DIEGO, I am a citizen of the United States and a resident of the county aforesaid; I am over the age of eighteen years, and not a party to or interested in the above entitled matter. 1 am principal clerk of the printer of The Coast News, a newspaper printed and published weekly and which news- paper has been adjudged a newspaper of general circulation for the cities of Del Mar, Solana Beach, Encinitas/Cardiff, Carlsbad, Oceanside, San Marcos/Vista and the County Judicial District by the Superior Court of the State of California, County of San Diego (8/4/94, #677114, B2393, P396); and that the notice, of which the annexed is a print- ed copy, has been published in, each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to-wit: April 25th. 2008 I certify under penalty of perjury that the foregoing is true and correct. Executed at Encinitas, County of San Diego, State of California on trfc25jiiiay of April, 2008. Clerk of the Printer Space above for County Clerk's Filing Stamp CITY OF CARLSBAD NOTICE OF PUBLIC HEARING NOTICE IS HEREBY GIVEN to you, because your interest may be affected, that the City Council of the City of Carlsbad will hold a public hearing at the Council Chambers, 1200 Carlsbad Village Drive, Carlsbad, California, at 6:00 p.m. on Tuesday, May 6, 2008, to consider adopting the California Coastal Commission's suggested modifications to Local Coastal Program Amendment (LCPA) 04-17 (Density Bonus Amendment); said suggested modifications consist of an amendment to the Inclusionary Housing and Density Bonus regulations in the Zoning Ordinance (ZCA 04-1OA/LCPA 04-17A). Those persons wishing to speak on this proposal are cordially invited to attend the public hearing. Copies of the agenda bill will be available on and after May 2, 2008. If you have any questions, please call Jennifer Jesser in the Planning Department at (760) 602-4637. The time within which you may judicially challenge this Zone Code Amendment and/or Local Coastal Program Amendment, if approved, is estab- lished by state law and/or city ordinance, and is very short. If you challenge the Zone Code Amendment and/or Local Coastal Program Amendment in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice or in written correspon- dence delivered to the City of Carlsbad. Attn: City Clerk's Office, 1200 Carlsbad Village Drive, Carlsbad, CA 92008, at or prior to the public hearing. CASE FILE: ZCA 04-1 OA/LCPA 04-17A CASE NAME: DENSITY BONUS AMENDMENT SUGGESTED MODIFICATIONS CN 5863, April 25, 2008 Easy Peel Labels Use Avery® TEMPLATE 5160®Paper See Instruction Sheet j for Easy Peel Feature ^iAVERY®si60® ! BUREAU OF INDIAN AFFAIRS 2800 COTTAGE WAY SACRAMENTO CA 95825 BUSINESS, TRANS & HSG AGENCY STE2450 980 NINTH ST SACRAMENTO CA 95814 CA COASTAL COMMISSION STE103 _- 7575 METROPOLITAN OR SAN DIEGeC"A 921084402 CANNEL ISLANDS NATL PARK SUPERINTENDENT'S OFFICE 1901 SPINNAKER DR SAN GUENA VENTURA CA 93001 CITY OF ENCINITAS 505 S VULCANAJi ENCINITAS^A92024 COASTAL CONSERVANCY STE 1100 1330 BROADWAY OAKLAND CA 94612 COUNTY OF SD SUPERVISOR RM335 1600 PACIFIC SAN DIEGO ca 92101 DEPT OF DEFENSE LOS ANGELES DISTENG PO BOX 2711 LOS ANGELES CA 90053 DEPT OF ENERGY STE 350 901 MARKET ST SAN FRANCISCO CA 94103 DEPT OF ENERGY STE 400 611 RYAN PLZDR ARLINGTON TX 760114005 DEPT OF FISH & GAME ENV SERV DIV PO BOX 944246 SACRAMENTO CA 942442460 DEPT OF FOOD & AGRICULTURE AGRICULTURAL RESOURSES RM 100 1220 N ST SACRAMENTO CA 95814 DEPT OF FORESTRY ENV COORD PO BOX 944246 SACRAMENTO CA 942442460 DEPT OF HOUSING & URBAN DEV 600 HARRISON ST SAN FRANCISCO CA 94107 DEPT OF JUSTICE DEPT OF ATTY GEN RM700 110 WEST AST SAN DIEGO CA 92101 DEPT OF TRANSPORTATION RM 5504 1120NST SACRAMENTO CA 95814 FED AVIATION ADMIN WESTERN REG PO BOX 92007 LOS ANGELES CA MARINE RESOURCES REG DR & G ENV SERVICES SPR STEJ 4665 LAMPSON AVE LOS ALAMITOS CA 907205139 OFF OF PLANNING & RESEARCH OFF OF LOCAL GOV ARRAIRS PO BOX 3044 SACRAMENTO CA 958123044 SD COUNTY PLANNING & LAND STE B-5 I DIEGO CA 92123 SAN FRANCISCO BAY CONSERV & DEV COM STE 2600 50 CALIFORNIA ST SAN FRANCISCO CA 941114704 SDGE 8315 CENTURY PARK CT SAN DIEGO CA 92123 SANDAG EXEC DIRECTOR STE 800 1STINTLJ3t£T%IBST DIEGO CA 92101 STATE LANDS COMMISSION STE 1005 100 HOWE AVE SACRAMENTO CA 958258202 STATE LANDS COMMISSION STE100S 100 HOWE AVE SACRAMENTO CA 95825 US ARMY CORPS OF ENGINEER STE 702 333 MARKET ST SAN FRANCISCO CA 941052197 US BUREAU OF LAND MGMT STE RM W 2800 COTTAGE WY SACRAMENTO CA 95825 US BUREAU OF RECLAMATION MID PACIFIC REG 2800 COTTAGE WY SACRAMENTO CA 95825 US FISH & WILDLIFE SERVICES 2800 COTTAGE WAY STE W-2605 SACRAMENTO CA 958251888 USDA RURAL DEVELOPMENT DEPT 4169 430 GST DAVIS CA 95616 Etiquettes faciles a peler Utilisez le gabarit AVERY® 5160®Sens de chargement Consultez la feuille d'instruction www.avery.com 1-800-GO-AVFRY Easy Peel Labels Use Avery® TEMPLATE 5160®j^Feed Paper See Instruction Sheet« for Easy Peel Feature 4 AVERY®5160® WATER RESOURCES CONTROL BOARD PO BOX 100 SACRAMENTO CA 95801 Etiquettes faciles a peler Utilisez le qabarit AVERY® 5160®Sens de chargement Consultez la feuille d'instruction www.avery.com 1-800-GO-AVERY Easy Peel Labels Use Avery® TEMPLATE 5160® CARLSBAD UNIF SCHOOL DIST 6225 EL CAMINO REAL CARLSBAD CA 92011 See Instruction Sheet i for Easy Peel Feature ^ SAN MARCOS SCHOOL DIST STE 250 255 PICO AVE SAN MARCOS CA 92069 AVERY®5160® ENCINITAS SCHOOL DIST 101 RANCHO SANTA FE RD ENCINITAS CA 92024 SAN DIEGUITO SCHOOL DIST 701 ENCINITAS BLVD ENCINITAS CA 92024 LEUCADIA WASTE WATER DIST TIM JOCHEN 1960 LA COSTA AVE CARLSBAD CA 92009 OLIVENHAIN WATER DIST 1966OLIVENHAINRD ENCINITAS CA 92024 CITY OF ENCINITAS 505 S VULCAN AVE ENCINITAS CA 92024 CITY OF SAN MARCOS 1 CIVIC CENTER DR SAN MARCOS CA 92069-2949 CITY OF OCEANSIDE 300 NORTH COAST HWY OCEANSIDE CA 92054 CITY OF VISTA 600 EUCALYPTUS AVE VISTA CA 92084 VALLECITOS WATER DIST 201 VALLECITOS DE ORO SAN MARCOS CA 92069 I.P.U.A. SCHOOL OF PUBLIC ADMIN AND URBAN STUDIES SAN DIEGO STATE UNIVERSITY SAN DIEGO CA 92182-4505 CALIF DEPT OF FISH & GAME 4949VIEWRIDGEAVE SAN DIEGO CA 92123 REGIONAL WATER QUALITY STE 100 9174 SKY PARK CT SAN DIEGO CA 92123-4340 SD COUNTY PLANNING STEB 5201 RUFFIN RD SAN DIEGO CA 92123 LAFCO 1600 PACIFIC HWY SAN DIEGO CA 92101 AIR POLLUTION CNTRL DIST 10124 OLD GROVE RD SAN DIEGO CA 92131 SANDAG STE 800 401 B STREET SAN DIEGO CA 92101 U.S. FISH & WILDLIFE 6010 HIDDEN VALLEY RD CARLSBAD CA 92011 CA COASTAL COMMISSION STE 103 7575 METROPOLITAN DR SAN DIEGO CA 92108-4402 ATTN TEDANASIS SAN DIEGO COUNTY AIRPORT AUTHORITY PO BOX 82776 SAN DIEGO CA 92138-2776 SCOTT MALLOY - BIASD STE 110 9201 SPECTRUM CENTER BLVD SAN DIEGO CA 92123-1407 CARLSBAD CHAMBER OF COMMERCE 5934 PRIESTLEY DR CARLSBAD CA 92008 CITY OF CARLSBAD RECREATION CITY OF CARLSBAD PUBLIC WORKS/ENGINEERING DEPT- PROJECT ENGINEER CITY OF CARLSBAD PROJECT PLANNER 4/07/2008 Etiquettes faciles a peler i i4.;i;,,,, !„ ^-.u-..;* nweov® cien®rla Consultez la feuille www.avery.com Coastal CommissionSuggested Modifications to Density Bonus AmendmentZCA 04-10A/LCPA 04-17A Description•Request:– City Council accept and administer the Coastal Commission’s suggested modifications to the Density Bonus Amendment (LCPA 04-17) Background• March 21, 2006– City Council approved an amendment to the Density Bonus regulations (ZCA 04-10/LCPA 04-17)– Not effective within Coastal Zone• March 6, 2008– Coastal Commission approved LCPA 04-17– Approval subject to suggested modifications Suggested Modifications• Amend Inclusionary Housing Chapter– Any “offset” must be consistent with the LCP land use plan, except density• Amend Density Bonus Chapter– Require a finding of consistency w/the LCP land use plan, except density– Clarify that lands identified as “undevelopable”in the General Plan, Zoning Ord., or LCP are excluded from density calculations BIA Concerns• Adding language to clarify that “undevelopable” lands are excluded from density calculations– Language is consistent with how City currently calculates density– Concerned that Coastal Commission may use the language to restrict a developer’s ability to receive density bonus Response to BIA Concerns• Suggested modifications:– Do not change or conflict with how the City currently calculates density– Do not add additional restrictions to a density bonus application– Do not change how the City would currently review and consider a density bonus application Response to BIA Concerns• How Coastal Commission interprets code language– Most requests for a density bonus would not be subject to Coastal Commission approval– Density Bonus law is a State law• City and Coastal Commission must comply with it–Consistent with the Coastal Act• Suggested modifications do not conflict with density bonus law Recommendation• Suggested Modifications are minor in nature and do not conflict with any City policy or regulation• Introduce Ordinance No. NS-889– Accepting and administering the suggested modifications