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2014-02-25; City Council; 21514; Amendments Density Bonus Regulations to Be Consistent with State, Case Law
CITY OF CARLSBAD - AGENDA BILL AB# MTG. DEPT. 21,514 AMENDMENTS TO THE CITY'S DENSITY BONUS REGULATIONS TO BE CONSISTENT WITH STATE AND CASE LAW DEPT. DIRECTOR CITY ATTORNEY CITY MANAGER AB# MTG. DEPT. 2/25/14 AMENDMENTS TO THE CITY'S DENSITY BONUS REGULATIONS TO BE CONSISTENT WITH STATE AND CASE LAW DEPT. DIRECTOR CITY ATTORNEY CITY MANAGER rm AB# MTG. DEPT. CED AMENDMENTS TO THE CITY'S DENSITY BONUS REGULATIONS TO BE CONSISTENT WITH STATE AND CASE LAW DEPT. DIRECTOR CITY ATTORNEY CITY MANAGER RECOMMENDED ACTION: That the City Council hold a public hearing and INTRODUCE Ordinance No. _ Municipal Code Amendment (MCA 13-03) and INTRODUCE Ordinance No. _ Zone Code Amendment (ZCA 13-01) and ADOPT Resolution No. 2014-032 CS-241 , APPROVING a CS-242 . APPROVING a . APPROVING a Local Coastal Program Amendment (LCPA 13-02) to amend Titles 20 and 21 of the city's Municipal Code to make the city's regulation of density bonuses consistent with state and case law. ITEM EXPLANATION; This project is city-initiated and consists of amendments to the text of the Subdivision Ordinance (Title 20 of the city's Municipal Code) and Zoning Ordinance (Title 21 of the city's Municipal Code and implementing ordinance of the city's Local Coastal Program). The purpose of the project is to make the city's regulation of density bonuses consistent with state and case law. Since the city last updated its regulations on density bonuses in 2006, the governor signed into law California State Legislative Assembly Bills 2280 (Saldana) and 806 (Torres). In addition, California's First District Court of Appeal issued a ruling in Latinos Unidos del Valle de Napa y Solano v. County of Napa ("LUNA"). Approval of this item would make the city's regulation of density bonuses consistent with state law as it has been modified and interpreted by the courts pursuant to the aforementioned assembly bills and court ruling. The proposed amendments to the Subdivision Ordinance are provided in strikethrough/underline format (Exhibit 4) and constitute non-substantive changes to correctly reference and use language and terms consistent with state law, which was recodified by Assembly Bill 806 (Torres). A complete discussion and analysis of the proposed amendments to the Zoning Ordinance is provided in the Report to the Planning Commission dated December 4, 2013 (Exhibit 6). On December 4, 2013, the Planning Commission held a public hearing to consider the proposed amendments to the Zoning Ordinance and Local Coastal Program. No members of the public spoke at the hearing and the Planning Commission voted 7 — 0 to recommend approval of the Zone Code Amendment and Local Coastal Program Amendment. The recommendation was approved by resolution (Exhibit 5) on consent. The Planning Commission minutes are attached (Exhibit 7). DEPARTMENT CONTACT: Kevin Pointer 760-602-4620 kevin.pointer@carlsbadca.gov FOR OTY CLERKS USE ONLY. COUNCIL ACTION: APPROVED CONTINUED TO DATE SPECIFIC • DENIED CONTINUED TO DATE UNKNOWN • CONTINUED • RETURNED TO STAFF • WITHDRAWN • OTHER-SEE MINUTES • AMENDED • Page! Amendments to Title 20 will become effective 30 days following City Council adoption of the ordinance; however, amendments to Title 21 will not become effective until the California Coastal Commission approves the Local Coastal Program Amendment. Staff will submit an application for a Local Coastal Program Amendment to the California Coastal Commission following City Council approval of the Zone Code Amendment. FISCAL IMPACT: The only anticipated fiscal impact would be from staff time required to complete the Local Coastal Program Amendment process through the California Coastal Commission. ENVIRONMENTAL IMPACT: The proposed amendments are exempt from environmental review pursuant to CECIA Section 15061(b)(3), which exempts projects "where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment." The changes proposed by this project are primarily procedural in nature and are not substantial and will not significantly affect the existing development standards in the Subdivision and Zoning Ordinances; therefore, the project will not result in a significant effect on the environment. A Notice of Exemption will be filed. EXHIBITS; 1. City Council Ordinance No. CS-241 (MCA 13-03) 2. City Council Ordinance No. CS-242 (ZCA13-01/LCPA13-02) 3. City Council Resolution No. 2014-032 (LCPA 13-02) 4. Proposed Text Changes to the Zoning Ordinance (Title 20) Shown in Strikethrough/Underline Format 5. Planning Commission Resolution No. 7026 6. Planning Commission Staff Report dated December 4, 2013 7. Draft Planning Commission minutes dated December 4, 2013. a 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 EXHIBIT 1 ORDINANCE NO. CS-241 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AMENDING TITLE 20 OF THE CARLSBAD MUNICIPAL CODE TO MAKE THE CITY'S REGULATION OF DENSITY BONUSES CONSISTENT WITH STATE AND CASE LAW. CASE NAME: DENSITY BONUS REGULATIONS CASE NO.: MCA 13-03 The City Council of the City of Carlsbad, California, does ordain as follows: Section 1: That Section 20.04.020(18) of the Carlsbad Municipal Code is amended to read as follows: (18) "Subdivision" means the division, by any subdivider, of any unit or units of improved or unimproved land, or any portion thereof, shown on the latest equalized county assessment roll as a unit or as contiguous units, for the purpose of sale, lease or financing, whether immediate or future except for leases of agricultural land for agricultural purposes. Property shall be considered as contiguous units, even if it is separated by roads, streets, utility easement or railroad rights-of-way. "Subdivision" includes a condominium project as defined in Section 4100 of the California Civil Code, a community apartment project, as defined in Section 4105 of the California Civil Code, or the conversion of five or more existing dwelling units to a stock cooperative, as defined in Section 4190 of the California Civil Code. Any conveyance of land to a governmental agency, public entity or public utility shall not be considered a division of land for purposes of computing the number of parcels. Section 2: That Section 20.04.040(b)(8) of the Carlsbad Municipal Code is amended to read as follows: (8) The conversion of a community apartment project, as defined in Section 4105 of the California Civil Code or a stock cooperative, as defined in Section 4190 of the California Civil Code, to a condominium project, as defined in Section 4125 of the California Civil Code, provided that the requirements of California Government Code Section 66412(g) or (h), respectively, have been met and the subdivider provides certification that the requirements have been met; /// /// /// /// /// /// 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 EFFECTIVE DATE: This ordinance shall be effective thirty days after its adoption; and the city clerk shall certify the adoption of this ordinance and cause the full text of the ordinance or a summary of the ordinance prepared by the City Attorney to be published at least once in a newspaper of general circulation in the City of Carlsbad within fifteen days after its adoption. INTRODUCED AND FIRST READ at a regular meeting of the Carlsbad City Council on the 25th day of February 2014, and thereafter, /// /// /// /// /// /// /// /// /// /// /// /// /// /// /// /// 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 PASSED AND ADOPTED at a regular meeting of the City Council of the City of Carlsbad on the day of , 2014, by the following vote, to wit: AYES: NOES: ABSENT- APPROVED AS TO FORM AND LEGALITY: CELIA A. BREWER, City Attorney MATT HALL, Mayor ATTEST: BARBARA ENGLESON, City Clerk -3- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 EXHIBIT 2 ORDINANCE NO. CS-242 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AMENDING TITLE 21 OF THE CARLSBAD MUNICIPAL CODE TO MAKE THE CITY'S REGULATION OF DENSITY BONUSES CONSISTENT WITH STATE AND CASE LAW. CASE NAME: DENSITY BONUS REGULATIONS CASE NO.: ZCA 13-01/LCPA 13-02 The City Council of the City of Carlsbad, California, does ordain as follows: SECTION 1: That Section 21.45.030A.1 of the Carlsbad Municipal Code is amended to read as follows: 1. "Condominium project" means a common interest development defined by Section 4100 of the California Civil Code, and which consists of two or more attached or detached dwelling units on one lot. SECTION 2: That Section 21.47.020 of the Carlsbad Municipal Code is amended to read as follows: 21.47.020 Nonresidential planned development permit. The city council, planning commission or city planner, as provided in this chapter, may approve a permit for a nonresidential planned development In any industrial, commercial or office zone, or combination of zones subject to the requirements thereof except as they may be modified in accord with this chapter. The application for a nonresidential planned development shall state whether the applicant intends to develop the project as a planned unit development, condominium project or stock cooperative project. For purposes of this chapter, a planned unit development is defined by Section 11003 of the Business and Professions Code of the state and a condominium project is defined by Section 4100 of the California Civil Code. SECTION 3: That Section 21.86.010.D of the Carlsbad Municipal Code is amended to read as follows: D. It is the purpose of this chapter to implement Sections 65915 through 65918 of the California Government Code. SECTION 4: That Section 21.86.020 of the Carlsbad Municipal Code is amended to read as follows: /// 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 21.86.020 Definitions. A. Whenever the following terms are used in this chapter, they shall have the meaning established by this section: 1. "Affordable housing" means housing for which the allowable housing expenses paid by a qualifying household shall not exceed a specified fraction of the county median income, adjusted for household size, as follows: a. Extremely low-income, rental and for-sale units: the product of thirty percent times thirty percent of the county median income, adjusted for household size. b. 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. c. Low-income, rental units: the product of thirty percent times sixty percent of the county median income, adjusted for household size. d. Low-Income, for-sale units: the product of thirty percent times seventy percent of the county median income, adjusted for household size. e. Moderate-income, for-sale units: allowable housing expenses shall not be less than twenty-eight percent of the gross income of the household, nor exceed the product of thirty-five percent times one hundred ten percent of the county median income, adjusted for household size. 2. "Allowable housing expense" means the total monthly or annual recurring expenses required of a household to obtain shelter. For a for-sale unit, allowable housing expenses include loan principal and interest at the time of initial purchase by the homebuyer, allowances for property and mortgage insurance, property taxes, homeowners' association dues and a reasonable allowance for utilities as defined by the Code of Federal Regulations (24CFR982). For a rental unit, allowable housing expenses include rent and a utility allowance as established and adopted by the city of Carlsbad housing authority, as well as all monthly payments made by the tenant to the lessor in connection with use and occupancy of a housing unit and land and facilities associated therewith, including any separately charged fees, utility charges, or service charges assessed by the lessor and payable by the tenant. 3. "Child day care center" shall have the same meaning as defined in Section 21.83.020(D) of this title. 4. "Common interest development" means any of the following (as defined in Section 4100 of the California Civil Code): a. A community apartment project; b. A condominium project; c. A planned development; d. A stock cooperative. 5. "Conversion" means the change of occupancy of a dwelling unit from owner-occupied to rental or vice versa. 6. "Density bonus" means an increase over the maximum allowable residential density as specified by the land use element of the general plan in effect at the time of application submittal. 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 7. "Density bonus dwelling units" means those residential units granted pursuant to the provisions of this chapter, which are above the maximum allowable residential density of the project site. 8. "Density bonus housing agreement" means a legally binding agreement between a developer and the city to ensure that the density bonus requirements of this chapter are satisfied. The agreement establishes, among other things, the number of target dwelling units and density bonus dwelling units, the unit sizes, location, affordability tenure, terms and conditions of affordability and unit production schedule. 9. "Development standard" means a site or construction condition/requirement that applies to a housing development pursuant to any ordinance, general plan element, master or specific plan, or other city requirement, law, policy, resolution or regulation. A "development standard" may include, but is not limited to a height limitation, a setback requirement, a floor area ratio, an onsite open space requirement or a parking ratio. 10. "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 annually by the U.S. Department of Housing and Urban Development. 11. "Housing development" means a development project for five or more residential units, including the following: a. A subdivision or common interest development consisting of residential units or unimproved lots; or b. A project to either substantially rehabilitate and convert an existing commercial building to residential use; or c. A project to substantially rehabilitate an existing two-family or multiple-family dwelling structure(s), where the rehabilitation results in a net increase to five or more available residential units. 12. "Incentives or concessions" means such regulatory incentives or concessions as stipulated in California Government Code Section 65915(k), to include, but not be limited to, the reduction of site development standards or zone code requirements, approval of mixed use zoning in conjunction with the housing project, or any other regulatory incentive which would result in identifiable, financially sufficient, and actual cost reductions to enable the provision of housing affordable to the designated income group or qualified (senior) resident. 13. "Income" means any monetary benefits that qualify as income in accordance with the cnteria and procedures used by the city of Carlsbad housing and neighborhood services department for the acceptance of applications and recertifications for the tenant based rental assistance program, or its successor. 14. "Low-income household" means those households whose gross Income is more than fifty percent but does not exceed eighty percent of the median income for San Diego County as determined annually by the U.S. Department of Housing and Urban Development. 15. "Lower-income household" means low-income, very low-income and extremely low-income households, whose gross income does not exceed eighty -3- 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 percent of the median income for San Diego County as determined annually by the U.S. Department of Housing and Urban Development. 16. "Market-rate unit" means a dwelling unit where the rental rate or sales price is not restricted either by this chapter or by requirements imposed through other local, state or federal affordable housing programs. 17. "Maximum allowable residential density" means the maximum density of the density range allowed by the residential general plan land use 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. 18. "Moderate-income household" means those households whose gross income is more than eighty percent but does not exceed one hundred twenty percent of the median income for San Diego County as determined annually by the U.S. Department of Housing and Urban Development. 19. "Qualifying resident" means a resident as defined in Chapter 21.84 of this title and Section 51.2 of the California Civil Code. 20. "Target dwelling unit" means a dwelling unit that will be offered for rent or sale exclusively to and which shall be affordable to the designated income group or qualified (senior) resident, as required by this chapter. 21. "Total units" means the number of dwelling units in a housing development, excluding the density bonus dwelling units awarded pursuant to this chapter or any other local ordinance granting a greater density bonus. 22. "Very low-income household" means a household earning a gross income equal to fifty percent or less of the median income for San Diego County as determined annually by the U.S. Department of Housing and Urban Development. SECTION 5: That Section 21.86.030 of the Carlsbad Municipal Code is amended to read as follows: 21.86.030 Inclusionary Housing. A. All housing development projects are required to provide affordable housing units in accordance with Chapter 21.85 (Inclusionary Housing) of this title. If an applicant seeks to construct affordable housing to qualify for a density bonus in accordance with the provisions of this chapter, those affordable dwelling units provided to meet the inclusionary requirement established pursuant to Chapter 21.85 of this title shall be counted toward satisfying the density bonus requirements of this chapter. SECTION 6: That Section 21.86.040.B.1.C of the Carlsbad Municipal Code is amended to read as follows: c. For housing developments meeting the criteria of subsection (A)(3) of this section, the density bonus shall be twenty percent of the number of senior housing units. .4. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 SECTION 7: That Section 21.86.040.C of the Carlsbad Municipal Code is amended to read as follows: C. When an applicant for a tentative subdivision map, parcel map, or other housing development approval donates land to the city, in accordance with this subsection, the applicant shall be entitled to a density bonus for the entire development, as follows: Table D Density Bonus for Land Donation Percentage of Very Low- Income Units Percentage of Density Bonus to be Granted 10 15 11 16 12 17 13 18 14 19 15 20 16 21 17 22 18 23 19 24 20 25 21 26 22 27 23 28 24 29 25 30 26 31 27 32 28 33 29 34 30 35 1. A density bonus granted pursuant to this subsection shall not exceed thirty-five percent. 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 2. If an applicant seeks both the density bonus pursuant to this subsection and subsection A of this section, both density bonuses shall be granted up to a maximum combined density bonus of thirty-five percent. 3. An applicant shall be eligible for the density bonus described in this subsection only if all of the following conditions are met: a. The land is donated and transferred to the city no later than the date of approval of the final subdivision map, parcel map or housing development application. b. The developable acreage, zoning classification and general plan land use designation of the land being donated are sufficient to permit construction of the units affordable to very low-income households in an amount not less than ten percent 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 forty units, and has the appropriate: 1) general plan land use designation; 2) zoning classification with appropriate development standards for development at the density described in paragraph (3) of subdivision (c) of Section 65583.2 of the California Government Code, and 3) is or will be served by adequate public facilities and Infrastructure. d. 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, not later than the date of approval of the final subdivision map, parcel map, or housing development, 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. e. The transferred land and the affordable units shall be subject to a deed restriction ensuring continued affordability of the units consistent with Section 21.86.100 of this chapter, which shall be recorded on the property at the time of the transfer. f. The land is transferred to the city or to a housing developer approved by the city. The city may require the applicant to identify and transfer the land to the developer. g. The transferred land shall be within the boundary of the proposed development or, if the city agrees, within one-quarter mile of the boundary of the proposed development. h. Prior to the approval of the final subdivision map, parcel map or housing development application, the developer shall identify a proposed source of funding for the very low income units. SECTION 8: That Section 21.86.040.H of the Carlsbad Municipal Code is amended to read as follows: H. For the purposes of calculating a density bonus, the residential units shall be on contiguous sites that are the subject of one development application in a housing development, but do not have to be based upon individual subdivision maps or parcels. -6- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 SECTION S: That Section 21.86.050.A.2 of the Carlsbad Municipal Code is amended to read as follows: 2. The decision-making body shall grant the incentive(s) or concession(s) requested by the applicant unless, based upon substantial evidence, any of the following findings are made in writing: a. The incentive or concession is not required in order to provide for affordable housing as defined in Section 21.86.020(A)(1) of this chapter. b. The incentive or concession would have a specific adverse impact upon public health and safety or the physical environment, or on any real property that is listed in the California Register of Historical Resources, and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact. As used in this paragraph, and as defined in paragraph (2) of subdivision (d) of Section 65589.5 of the California Government Code, a "specific, adverse impact" means a significant, quantifiable, direct and unavoidable impact, based on objective, identified written public health or safety standards, policies, or conditions as they existed on the date the application was deemed complete. c. The incentive or concession would be contrary to state or federal law. SECTION 10: That Section 21.86.060 of the Carlsbad Municipal Code is amended to read as follows: 21.86.060 Waiver or reduction of development standards. A. In addition to the Incentives or concessions permitted by Section 21.86.050 of this chapter, an applicant may seek a waiver or reduction of development standards that will have the effect of physically precluding the construction of a housing development meeting the criteria of Section 21.86.040(A) of this chapter at the densities or with the incentives or concessions permitted by this chapter. 1. The applicant shall provide evidence that the development standard(s) requested to be waived or reduced will have the effect of physically precluding the construction of a housing development at the densities or with the incentives or concessions permitted by this chapter. 2. A proposal for the waiver or reduction of development standards pursuant to this section shall neither reduce nor increase the number of incentives or concessions to which the applicant is entitled pursuant to Section 21.86.050 of this chapter. 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 development standard(s) requested to be waived or reduced will not have the effect of physically precluding the construction of a housing development at the densities or with the incentives or concessions permitted by this chapter. 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 2. The requested waiver or reduction of development standards would have a specific adverse impact upon public health and safety or the physical environment, or on any real property that is listed in the California Register of Historical Resources, and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact. As used in this subsection, and as defined in paragraph (2) of subdivision (d) of Section 65589.5 of the California Government Code, a "specific, adverse impact" means a significant, quantifiable, direct, and unavoidable Impact, based on objective, identified written public health or safety standards, policies, or conditions as they existed on the date the application was deemed complete. 3. The waiver or reduction of development standards would be contrary to state or federal law. SECTION 11: That Section 21.86.090.G of the Carlsbad Municipal Code is amended to read as follows: G. Upon the request of the applicant, the parking ratio (inclusive of handicap and guest parking) for a housing development that conforms to the requirements of Section 21.86.040(A) of this chapter 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) of this chapter, the parking standards specified in Chapter 21.44 of this code shall apply. 1. If the total number of parking spaces required for a development is other than a whole number, the number shall be rounded up to the next whole number. 2. For purposes of this section, a housing development may provide "on-site" parking through tandem parking or uncovered parking, but not through on- street parking. 3. The applicant may request parking incentives or concessions beyond those provided in this section, subject to the findings specified in Section 21.86.050(A)(2) of this chapter. Table E Parking Ratio for Housing Developments Dwelling Unit Size On-Site Parking Ratio 0-1 bedroom 1 space per unit 2-3 bedrooms 2 spaces per unit 4 or more bedrooms 2.5 spaces per unit SECTION 12: That Section 21.86.100.B of the Carlsbad Municipal Code is amended to read as follows: B. All moderate-income dwelling units directly related to the receipt of a density bonus for a common interest development shall be subject to the following: 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. The initial occupant(s) of the target dwelling unit(s) shall be persons and families of moderate income, and the units shall be offered at an affordable housing cost that does not exceed the allowable housing expenses for a moderate-income household. 2. Unless in conflict with the requirements of another public funding source or law, the target dwelling unit(s) shall be subject to an equity sharing agreement that specifies: a. Upon resale, the seller of the unit shall retain the value of any improvements, the down payment, and the seller's proportionate share of appreciation. b. Upon resale, the city shall recapture any initial subsidy and its proportionate share of appreciation, which shall then be used within five years for any of the purposes described in subdivision (e) of Section 33334.2 of the Health and Safety Code that promote homeownership. i. For the purposes of this subsection, the city's initial subsidy shall be equal to the fair market value of the home at the time of initial sale minus the initial sale price to the moderate-income household, plus the amount of any down payment assistance or mortgage assistance. If upon resale the market value is lower than the initial market value, then the value at the time of the resale shall be used as the initial market value. ii. For the purposes of this subsection, the city's proportionate share of appreciation shall be equal to the ratio of the city's initial subsidy to the fair market value of the home at the time of initial sale. 3. If the city provides a direct financial contribution to a common interest development through participation in cost of infrastructure, write-down of land costs, or subsidizing the cost of construction, the target dwelling unit(s) shall remain affordable to the designated income group for at least thirty years. SECTION 13: That Section 21.86.110.C.2.f of the Carlsbad Municipal Code is amended to read as follows: f. In the case of a request for a waiver or reduction of development standards, pursuant to Section 21.86.060 of this chapter, evidence that the development standard being waived or reduced will have the effect of physically precluding the construction of the development at the densities or with the concessions or Incentives permitted by this chapter; SECTION 14: That Section 21.86.120.A.3 of the Carlsbad Municipal Code is amended to read as follows: 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 avoid physically precluding the -9- 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 TQ construction of a housing development at the densities or with the incentives or concessions permitted by this chapter. SECTION 15: That Section 21.86.120.A.7 of the Carlsbad Municipal Code is added as follows: 7. The requested incentive(s) or concession(s), and/or waiver(s) or reduction(s) of development standards would be contrary to state or federal law. EFFECTIVE DATE: This ordinance shall be effective thirty days after its adoption; and the city clerk shall certify the adoption of this ordinance and cause the full text of the ordinance or a summary of the ordinance prepared by the City Attorney to be published at least once in a newspaper of general circulation in the City of Carlsbad within fifteen days after its adoption. (Notwithstanding the preceding, this ordinance shall not be effective until approved by the Colifornia Coastal Commission.) INTRODUCED AND FIRST READ at a regular meeting of the Carlsbad City Council on the 25th day of February 2014, and thereafter. /// /// /// /// /// /// /// /// /// /// -10- 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 PASSED AND ADOPTED at a regular meeting of the City Council of the City of Carlsbad on the day of , 2014, by the following vote, to wit: AYES: NOES: ABSENT: APPROVED AS TO FORM AND LEGALITY: CELIA A. BREWER, City Attorney MATT HALL, Mayor ATTEST: BARBARA ENGLESON, City Clerk -11- EXHIBIT 3 ^ RESOLUTIONNO. 2014-032 2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, 3 CALIFORNIA, A LOCAL COASTAL PROGRAM AMENDMENT TO MAKE THE CITY'S REGULATION OF DENSITY BONUSES 4 CONSISTENT WITH STATE AND CASE LAW. CASE NAME: DENSITY BONUS REGULATIONS CASE NO.: LCPA 13-02 5 6 7 follows: The City Council of the City of Carlsbad, California, does hereby resolve as Commission did on December 4, 2013, hold a duly noticed public hearing as prescribed by law to consider the Zone Code Amendment (ZCA 13-01), and Local Coastal Program Amendment (LCPA 13-02), both of which are referenced in Planning Commission Resolution No. 7026; and WHEREAS, the Planning Commission adopted Planning Commission Resolution 8 WHEREAS, pursuant to the provisions of the Municipal Code, the Planning 9 10 11 12 13 ^4 No. 7026 recommending to the City Council that ZCA 13-01 and LCPA 13-02 be approved; and 15 WHEREAS, the City Council of the City of Carlsbad on the 25th day of 16 February , 2014, held a duly noticed public hearing to consider the Zone Code 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 Local Coastal Program Amendment. 17 18 19 20 21 22 NOW THEREFORE, BE IT HEREBY RESOLVED by the City Council of the City of 23 Carlsbad, as follows: 24 1. That the foregoing recitations are true and correct. 25 2. That the findings of the Planning Commission in Planning Commission 26 Resolution No. 7026 constitute the findings of the City Council in this matter. 27 " 28 17 12 15 16 17 18 19 20 21 3. That the amendment to the Local Coastal Program (LCPA 13-02), is approved as shown in Planning Commission Resolution No. 7026, on file with the City Clerk and incorporated herein by reference. 1 2 3 4 5 4. That the approval of LCPA 13-02 shall not become effective until it is 6 approved by the California Coastal Commission. 7 "NOTICE TO APPLICANT" g The time within which Judicial review of this decision must be sought is governed 9 by Code of Civil Procedure, Section 1094.6, which has been made applicable in the City of Carlsbad by Carlsbad Municipal Code Chapter 1.16. Any petition or other paper seeking review 10 must be filed in the appropriate court not later than the ninetieth day following the date on which this decision becomes final; however, if within ten days after the decision becomes final a request for the record is filed with a deposit in an amount sufficient to cover the estimated cost or preparation of such record, the time within which such petition may be filed in court is extended to not later than the thirtieth day following the date on which the record is either 23 personally delivered or mailed to the party, or his attorney of record, if he has one. A written request for the preparation of the record of the proceedings shall be filed with the City Clerk, 14 City of Carlsbad, 1200 Carlsbad Village Drive, Carlsbad, CA. 92008. /// /// /// /// /// /// 22 /// 23 24 25 26 27 28 -2- /// /// /// /// PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 25th day of February 2014, by the following vote to wit: AYES: NOES: ABSENT: Council Members Hall, Packard, Wood, Blackburn. None. None. 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ATTEST: BARBARA ENGLES0N<2ity Clerk Exhibit 4 DENSITY BONUS REGULATIONS MCA 13-03 PROPOSED TEXT CHANGES TO THE MUNICIPAL CODE (TITLE 20) SHOWN IN STRIKETHROUGH/UNDERLINE FORMAT Section 20.04.020 20.04.020 Definitions. Words used in this title that are defined in the Subdivision Map Act but not specifically defined in this chapter shall have the same meaning as is given to them in the Subdivision Map Act. Whenever the following words are used in this title, they shall have the meaning ascribed to them in this section: (1) "Adjustment plat" means a plat prepared pursuant to Chapter 20.36 of this title and certified by the city engineer as having been approved pursuant to this title and filed in the office of the city engineer. (2) "Bicycle" means a device upon which any person may ride, propelled by human power through a belt, chain or gears, and having either two or three wheels in a tandem or tricycle arrangement. (3) "Bicycle route" means the generic term for all facilities that explicitly provide for bicycle travel by a course which is to be traveled. (4) "Cable television lines" means electronic cable, conduit and any other appurtenances thereto which distribute television or other electronic signals. (5) "Conditional certificate of compliance" means a document describing a unit or contiguous units of real property and stating that the fulfillment and implementation of the conditions set forth therein are required prior to subsequent issuance of a building or grading permit applicable thereto. (6) "Certificate of compliance" means a document describing a unit or contiguous units of real property and stating that the division thereof complies with applicable provisions of the Subdivision Map Act and city ordinances enacted pursuant thereto. (7) "City standards" means those standards and specifications, including standard drawings, as may be adopted from time to time by the city engineer. These standards are to be on file in the office of the city clerk and in the engineering department. (8) "Development permit" means any permit, entitlement or approval required pursuant to Titles 20 or 21 of this code, or pursuant to any applicable master, specific, or redevelopment plan. Exhibit 4 (9) "Final map" means a map prepared pursuant to Chapter 20.20 of this title and the Subdivision Map Act which, after approval and recordation, is effective to complete the subdivision of a major subdivision. (10) "Improvement" means: a. Such street work and utilities, including ornamental street lights and walkways to be installed or agreed to be installed by the subdivider on land to be used for public or private streets, highways, ways, bicycle routes and easements, as are necessary for the general use of the lot owners in the subdivision and local neighborhood traffic, drainage, flood control, fire protection and sanitation needs as a condition precedent to the approval of a parcel map or final map; b. Any other specific improvements or types of improvements, the installation of which, either by the subdivider, by public agencies, by private utilities, by any other entity approved by the city council or by a combination thereof, is necessary to ensure conformity to or implementation of the general plan, any specific plan, any applicable local coastal plan or any applicable master plan adopted according to this title. (11) "Interior lot" shall have the same definition as specified by Section 21.04.230 of this code. (12) "Major subdivision" means a subdivision of five or more lots. (13) "Minor subdivision" means a subdivision of four or fewer lots. (14) "Notice of violation" means a recorded document describing a unit or contiguous units of real property, naming the owners thereof, and describing the manner in which the real property has been divided, or has resulted from a division in violation of the Subdivision Map Act and city ordinances enacted pursuant thereto. (15) "Parcel map" means a map prepared pursuant to Chapter 20.32 of this title and the Subdivision Map Act which, after approval and recordation, is effective to effect the subdivision of a minor subdivision. (16) "Street" means a state highway, county or city road or street, public road, street, alley or thoroughfare. (17) "Subdivider" means a person, firm, corporation, partnership or association who proposes to divide, divides, or causes to be divided real property into a subdivision for himself/herself or for others, except that employees and consultants of such persons or entities, acting in such capacity, are not "subdividers." (18) "Subdivision" means the division, by any subdivider, of any unit or units of improved or unimproved land, or any portion thereof, shown on the latest equalized county assessment roll as a unit or as contiguous units, for the purpose of sale, lease or financing, whether immediate or future except for leases of agricultural land for agricultural purposes. Property shall be considered as contiguous units, even if it is separated by roads, streets, utility easement or railroad rights-of-way. "Subdivision" includes a condominium project as defined in Section 1351 ^100 of the California Civil Code, a community apartment project, as defined in subdivision (d) of Section 1351 4105 of the California Civil Code, or the conversion of five or Exhibit 4 more existing dwelling units to a stock cooperative, as defined in subdivision (m) of Section 1351 ^190 of the California Civil Code. Any conveyance of land to a governmental agency, public entity or public utility shall not be considered a division of land for purposes of computing the number of parcels. (19) "Tentative map" means a map prepared for the purpose of showing the design and improvement of a proposed major subdivision, and the existing conditions in and around it, filed with the city planner precedent to the preparation and filing of a final map, and may, but need not be, based upon an accurate and detailed final survey of the property. (20) 'Tentative parcel map" means a map prepared for the purpose of showing the design and improvement of a proposed minor subdivision, and the existing conditions in and around it, filed with the city planner for approval or conditional approval prior to the preparation and filing of a parcel map or prior to waiver of the requirement for a parcel map, and may, but need not be, based upon an accurate and detailed final survey of the property. (21) "Through lot" means a lot having frontage on two parallel or approximately parallel streets. (22) "Vesting tentative map" means a tentative map for a subdivision which conforms to the requirements of Chapter 20.17 and confers upon the subdivider certain rights established by this title. "Vesting tentative parcel map" means a vesting tentative map prepared in conjunction with a parcel map. Section 20.04.040 20.04.040 Application of Subdivision Map Act. (a) Except as othenA/ise expressly provided in this title, all of the provisions of the Subdivision Map Act, which apply to subdivisions as defined in that act and all of the provisions of this title, apply to subdivisions as defined in this title. (b) This title shall be inapplicable to: (1) The financing or leasing of: a. Apartments, offices, stores or similar space within a duplex, multiple dwelling, apartment building, industrial building, commercial building, mobile home park or trailer park. b. Any parcel of land or portion thereof in conjunction with the construction of commercial or industrial buildings on a single parcel, unless the project is not subject to review under other provisions of this code regulating design and improvement. c. Existing separate commercial or industrial buildings on a single parcel; (2) The construction, financing or leasing of dwelling units and second dwelling units pursuant to California Government Code Sections 65852.1 and 65852.2, respectively. This title shall be applicable to the sale or transfer of those units. of the state; Exhibit 4 (3) Mineral, oil or gas leases; (4) Land dedicated for cemetery purposes under the Health and Safety Code (5) A lot line adjustment between four or fewer existing adjoining parcels, where the land taken from one parcel is added to an adjoining parcel, and where a greater number of parcels than originally existed is not thereby created, provided an adjustment plat pursuant to Chapter 20.36 of this title for the lot line adjustment is approved by the city planner; (6) Boundary line or exchange agreements to which the state lands commission or a local agency holding a trust grant of tide and submerged lands is a party; (7) Any separate assessment under Revenue and Taxation Code Section 2188.7; (8) The conversion of a community apartment proiect. as defined in Section 4105 of the California Civil Code or a stock cooperative, as defined in Section 1351 ^190 of the California Civil Code, to a condominium proiect. as defined in Section 783 ^125 of the California Civil Code, provided that the requirements of California Government Code Section 66412(g) or (h), respectively, have been met and the subdivider provides certification that the requirements have been met; (9) The leasing of, or the granting of an easement to, a parcel of land or any part thereof, in conjunction with the financing, erection, and sale or lease of any wind powered electrical generating device on the land, if the project is subject to discretionary action pursuant to this code; (10) The leasing or licensing of a portion of a parcel, or the granting of an easement, use permit, or similar right on a portion of a parcel, to a telephone corporation as defined in Section 234 of the Public Utilities Code, exclusively for the placement and operation of cellular radio transmission facilities, including, but not limited to, antennae support structures, microwave dishes, structures to house cellular communications transmission equipment, power sources, and other equipment incidental to the transmission of cellular communications, if the project is subject to discretionary action pursuant to this code. (11) The leasing of, or the granting of an easement to, a parcel of land, or any portion or portions thereof, in conjunction with the financing, erection, and sale or lease of a solar electrical generation device on the land, if the project is subject to review pursuant to other provisions of this code that regulate design and improvement or, if the project is subject to discretionary action pursuant to this code. (12) The leasing of, or the granting of an easement to, a parcel of land or any portion or portions of the land in conjunction with a biogas project that uses, as part of its operation, agricultural waste or byproducts from the land where the project is located and reduces overall emissions of greenhouse gases from agricultural operations on the land, if the project is subject to review pursuant to other provisions of this code regulating design and improvement or if the project is subject to discretionary action pursuant to this code. Exhibit 4 (13) Leases of agricultural land for agricultural purposes. As used In this subdivision, "agricultural purposes" means the cultivation of food or fiber, or the grazing or pasturing of livestock; (14) Leases of agriculturally zoned land to nonprofit organizations for the purpose of operating an agricultural labor housing project on the property if all of the following conditions apply: a. The property to be leased shall not be more than five acres. b. The lease shall be for not less than thirty years. c. The lease shall be executed prior to January 1, 2017. EXHIBIT 5 WHEREAS, the City Planner has prepared a proposed Zone Code Amendment pursuant to Section 21.52.020 of the Carlsbad Municipal Code to: amend the city's Zoning Ordinance to make the 1 PLANNING COMMISSION RESOLUTION NO. 7026 2 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF 3 CARLSBAD, CALIFORNIA, RECOMMENDING APPROVAL OF A ZONE CODE AMENDMENT AND A LOCAL COASTAL PROGRAM AMENDMENT TO 4 MAKE THE CITY'S REGULATION OF DENSITY BONUSES CONSISTENT WITH STATE AND CASE LAW. 5 CASE NAME: DENSITY BONUS REGULATIONS CASE NO: ZCA 13-01/LCPA 13-02 6 7 8 g city's regulation of density bonuses consistent with state and case law; and ;i^0 WHEREAS, California State law requires that the Local Coastal Program, General Plan, 11 and Zoning designations for properties in the Coastal Zone be in conformance; and 12 WHEREAS, the City Planner has prepared a Local Coastal Program Amendment, as 13 provided in Public Resources Code Section 30514 and Section 13551 of California Code of Regulations 14 Title 14, Division 5.5; and 1^ WHEREAS, the proposed Zone Code Amendment and Local Coastal Program Amendment are set forth in the draft City Council Ordinance, Exhibit "X" dated December 4, 2013, and attached hereto DENSITY BONUS REGULATIONS - ZCA 13-01/LCPA 13-02; and WHEREAS, State Coastal Guidelines requires a six-week public review period for any amendment to the Local Coastal Program; and WHEREAS, the Planning Commission did on December 4, 2013, hold a duly noticed public hearing as prescribed by law to consider said request for a proposed Zone Code 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, said Commission considered all factors relating to the Zone Code Amendment and Local Coastal Program Amendment. 1 A) That the foregoing recitations are true and correct. 2 B) At the end of the state-mandated six-week review period for the Local Coastal Program 3 Amendment, starting on November 8, 2013 and ending on December 20, 2013, staff shall present to the City Council a summary of the comments received. 4 C) That based on the evidence presented at the public hearing, the Planning Commission 5 RECOMMENDS APPROVAL of DENSITY BONUS REGULATIONS - ZCA 13-01/LCPA 13-02, ^ based on the following findings: 7 1. That the proposed Zone Code Amendment ZCA 13-01 is consistent with the General Plan in that 8 the proposed amendments do not conflict with any goal, objective, or policy of the General Plan, and amendments to the city's density bonus regulations to be consistent with state and case law will further the goals and objectives of the General Plan. 24 25 26 Findings; 2. That the proposed Zone Code Amendment reflects sound principles of good planning. 9 10 11 3. That the proposed Local Coastal Program Amendment meets the requirements of, and is in j2 conformity with, the policies of Chapter 3 of the Coastal Act and all applicable policies of the Carlsbad Local Coastal Program not being amended by this amendment, in that the 23 amendments ensure consistency with the Carlsbad Zoning Ordinance and state density bonus law, and does not conflict with any coastal zone regulations, land use designations or policies, 14 with which development must comply. 15 4. That the proposed amendment to the Carlsbad Local Coastal Program is required to bring it into consistency with the proposed Zone Code Amendment (ZCA 13-01). 16 " 17 18 PASSED, APPROVED, AND ADOPTED at a regular meeting of the Planning Commission of the City of Carlsbad, held on December 4,2013, by the following vote, to wit: AYES: Chairperson Siekmann, Commissioners Anderson, Black, L'Heureux, 1^ Schumacher, Scully and Segall 20 NOES: 21 ABSENT: 22 V /»oSTAII 23 T ' /f ^\ J\yM^cyjiOO<^ KERRY K. SIEKMANN, Chairperson CARLSBAD PLANNING COMMISSION 27 DON NEU City Planner 28 " PC RESO NO. 7026 -2- EXHIBIT 6 The City of Carlsbad Planning Division A REPORT TO THE PLANNING COMMISSION Item No. Application complete date: N/A P.C. AGENDA OF: December 4, 2013 Project Planner: Kevin Pointer Project Engineer: N/A SUBJECT: ZCA 13-01/LCPA 13-02 DENSITY BONUS REGULATIONS A request for recommendation of approval of a Zone Code Amendment and Local Coastal Program Amendment to amend the city's Zoning Ordinance to make the city's regulation of density bonuses consistent with state and case law. I. RECOMMENDATION That the Planning Commission ADOPT Planning Commission Resolution No. 7026 RECOMMENDING APPROVAL of ZCA 13-01 and LCPA 13-02 based on the findings contained therein. II. PROJECT DESCRIPTION AND BACKGROUND This project is a city-initiated Zone Code Amendment and Local Coastal Program Amendment consisting of amendments to the text of the Zoning Ordinance. The primary purpose of this project is to make the city's regulations pertaining to density bonuses consistent with California Assembly Bills 2280 (Saldana) and 806 (Torres), as well as a California appellate court's ruling in Latinos Unidos del Valle de Napa y Solano V. County of Napa ("LUNA"). The proposed amendments are consistent with applicable portions of the General Plan and maintain internal consistency with the Local Coastal Program (LCP). With regard to the LCP, the Zoning Ordinance is the implementing ordinance; therefore an LCPA is necessary. However, no portion of the LCP land use plan document is proposedto be amended. Since the city last updated its density bonus ordinance in 2006, the governor signed into law California State Legislative Assembly Bills 2280 (Saldana) and 806 (Torres). In addition, California's First District Court of Appeal issued a ruling in Latinos Unidos del Valle de Napa y Solano v. County of Napa ("LUNA"), establishing precedent in the applicability of state law pertaining to density bonus regulation. The purpose of proposed amendments to the city's Zoning Ordinance and LCP are to make the city's regulations pertaining to density bonuses consistent with recent state and case law that has been enacted since the city last updated its density bonus ordinance in 2006. III. ANALYSIS The proposed amendments to the Zoning Ordinance are provided in strikethrough/underline format (Attachment 2) and are summarized and analyzed as follows: A. Summary and Analysis of Changes to Maintain Consistency with Assembly Bill 2280 (Saldana): Assembly Bill 2280 (Saldana) achieves the following: ZCA 13-01/LCPA 13-02 - DENSITY BONUS REGULATIONS December 4, 2013 Page 2 1. Requires the city to grant a concession or incentive requested by developers of residential housing projects unless the city makes a written finding, based upon substantial evidence, that among other things, the concession or Incentive would be contrary to state or federal law. 2. Deletes a previous requirement that developers requesting a concession or reduction of development standards show that the waiver or modification is necessary to make the proposed housing units economically feasible. 3. Requires, as a condition for the granting of a density bonus to a developer In exchange for donating land to the city for very low income housing, that the city identify a source of funding for the very low income units. The proposed amendments to the Zoning Ordinance include changes to Implement state law consistent with the requirements established by Assembly Biil 2280. B. Summary and Analysis of Proposed Changes to Maintain Consistency with Assembly Bill 806 (Torres) Assembly Bill 806 makes various technical conforming changes to reflect revision and recodification of the Davis-Stirling Common Interest Development Act. The proposed amendments to the Zoning Ordinance include non-substantive changes to correctly reference and use language and terms consistent with state law. C. Summary and Analysis of Proposed Changes to Maintain Consistency with "LUNA'' Decision In July of this year, a California appellate court held in a ruling on Latinos Unidos del Valle de Napa y Solano V. County of Napa ("LUNA"), that cities and counties must count affordable housing units developed pursuant to local inclusionary requirements toward satisfying density bonus standards set forth in state law. The city's regulations pertaining to inclusionary housing are Inconsistent with this ruling in that the city specifies that affordable dwelling units that qualify for a density bonus are in addition to, and do not count toward satisfying the city's inclusionary housing requirements. The proposed amendments to the Zoning Ordinance include a revision to eliminate this requirement. IV. ENVIRONMENTAL REVIEW The proposed amendments are exempt from environmental review pursuant to CEQA Section 15061(B), which exempts projects "where it can be seen with certainty that there Is no possibility that the activity in question may have a significant effect on the environment." The changes proposed by this project are primarily procedural In nature and are not substantial and will not significantly affect the existing development standards in the Zoning Ordinance; therefore, the project will not result in a significant effect on the environment. A Notice of Exemption will be filed. ATTACHMENTS: 1. Planning Commission Resolution No. 7026 (ZCA 13-01/LCPA 13-02) 2. Proposed Text Changes to the Zoning Ordinance (Title 21) Shown in Strikethrough/UndeHine Format Attachment 2 DENSITY BONUS REGULATIONS ZCA 13-01/LCPA 13-02 PROPOSED TEXT CHANGES TO THE ZONING ORDINANCE (TITLE 21) SHOWN IN STRIKETHROUGH/UNDERLINE FORMAT AMENDMENTS TO CHAPTER 21.45 PLANNED DEVELOPMENTS Section 21.45.030 21.45.030 Definitions. A. Whenever the following terms are used in this chapter, they shall have the meaning established by this section: 1. "Condominium project" means a common interest development defined by Section 1351 4100 of the California Civil Code, and which consists of two or more attached or detached dwelling units on one lot. 2. "Driveway" means an improved surface on private property intended for exclusive vehicular access from a public/private street or drive-aisle to open/enclosed parking for a single residential unit (attached or detached). 3. "Drive-aisle" means an improved surface on private property intended for shared vehicular access (serving two or more residential units, attached or detached) from a public/private street to a driveway(s) or open/enclosed parking. 4. "Net pad area" means the building pad of a lot excluding all natural or manufactured slopes greater than 3 feet in height except intervening manufactured slopes between split-level pads on a single lot. 5. "Planned development" means a form of development usually characterized by a unified site design for a number of housing units, clustering buildings and providing common open space, recreation and streets. 6. "Twin-home" means two dwellings attached by a common wall where each dwelling is on a separate lot that allows for separate ownership. AMENDMENTS TO CHAPTER 21.47 NONRESIDENTIAL PLANNED DEVELOPMENTS Section 21.47.020 21.47.020 Nonresidential planned development permit. The city council, planning commission or city planner, as provided in this chapter, may approve a permit for a nonresidential planned development in any industrial, commercial or office zone, or combination of zones subject to the requirements thereof except as they may be modified in accord with this chapter. DENSITY BONUS REGULATIONS (ZCA 13-01/LCPA 13-02) PROPOSED TEXT CHANGES TO THE ZONING ORDINANCE The application for a nonresidential planned development shall state whether the applicant intends to develop the project as a planned unit development, condominium project or stock cooperative project. For purposes of this chapter, a planned unit development is defined by Section 11003 of the Business and Professions Code of the state and a condominium project is defined by Section 1351 4100 of the California Civil Code- AMENDMENTS TO CHAPTER 21.86 RESIDENTIAL DENSITY BONUS AND INCENTIVES OR CONCESSIONS Section 21.86.010 21.86.010 Purpose and intent. A. The public good is served when there exists in a city, housing which is appropriate for the needs of and affordable to all members of the public who reside within that city. Among other needs, there is in Carlsbad a need for housing affordable to lower-income households and senior citizens. Therefore, it is in the public interest for the city to promote the construction of such additional housing through the exercise of its powers and the utilization of its resources. B. It is the purpose of this chapter to provide a means for granting density bonuses and incentives or concessions to developers for the production of housing affordable to lower- and moderate-income households, and senior citizens. C. It is the purpose of this chapter to implement the goals, objectives and policies of the housing element of the city's general plan. D. It is the purpose of this chapter to implement Sections 65915 through 65917 65918 of the California Government Code. E. Nothing in this chapter is intended to create a mandatory duty on behalf of the city or its employees under the Government Tort Claims Act and no cause of action against the city or its employees is created by this chapter that would not arise independently of the provisions of this chapter. F. Nothing in this chapter shall be construed to supersede or in any way alter or lessen the effect or application of the California Coastal Act. Section 21.86.020 21.86.020 Definitions. A. Whenever the following terms are used in this chapter, they shall have the meaning established by this section: 1. "Affordable housing" means housing for which the allowable housing expenses paid by a qualifying household shall not exceed a specified fraction of the county median income, adjusted for household size, as follows: Page 2 DENSITY BONUS REGULATIONS (ZCA 13-01/LCPA 13-02) PROPOSED TEXT CHANGES TO THE ZONING ORDINANCE a. Extremely low-income, rental and for-sale units: the product of thirty percent times thirty percent of the county median income, adjusted for household size. b. 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. c. Low-Income, rental units: the product of thirty percent times sixty percent of the county median Income, adjusted for household size. d. Low-Income, for-sale units: the product of thirty percent times seventy percent of the county median income, adjusted for household size. e. Moderate-income, for-sale units: allowable housing expenses shall not be less than twenty-eight percent of the gross income of the household, nor exceed the product of thirty-five percent times one hundred ten percent of the county median income, adjusted for household size. 2. "Allowable housing expense" means the total monthly or annual recurring expenses required of a household to obtain shelter. For a for-sale unit, allowable housing expenses include loan principal and Interest at the time of initial purchase by the homebuyer, allowances for property and mortgage Insurance, property taxes, homeowners' association dues and a reasonable allowance for utilities as defined by the Code of Federal Regulations (24CFR982). For a rental unit, allowable housing expenses Include rent and a utility allowance as established and adopted by the city of Carlsbad housing authority, as well as all monthly payments made by the tenant to the lessor in connection with use and occupancy of a housing unit and land and facilities associated therewith, including any separately charged fees, utility charges, or service charges assessed by the lessor and payable by the tenant. 3. "Child day care center" shall have the same meaning as defined in Section 21.83.020(D) of this title. 4. "Common interest development" means any of the following (as defined in Section 1351 ^100 of the California Civil Code): a. A community apartment project; b. A condominium project; c. A planned development; d. A stock cooperative. 5. "Conversion" means the change of occupancy of a dwelling unit from owner-occupied to rental or vice versa. 6. "Density bonus" means an increase over the maximum allowable residential density as specified by the land use element of the general plan in effect at the time of application submittal. Page 3 DENSITY BONUS REGULATIONS (ZCA 13-01/LCPA 13-02) PROPOSED TEXT CHANGES TO THE ZONING ORDINANCE 7. "Density bonus dwelling units" means those residential units granted pursuant to the provisions of this chapter, which are above the maximum allowable residential density of the project site. 8. "Density bonus housing agreement" means a legally binding agreement between a developer and the city to ensure that the density bonus requirements of this chapter are satisfied. The agreement establishes, among other things, the number of target dwelling units and density bonus dwelling units, the unit sizes, location, affordability tenure, terms and conditions of affordability and unit production schedule. 9. "Development standard" means a site or construction conditions/requirements that a00lv-applies to a housing development pursuant to any ordinance, general plan element, master or specific plan, or other city requirement, law, policy, resolution or regulation. A "development standard" mav include, but is not limited to a height limitation, a setback requirement, a floor area ratio, an onsite open space requirement or a parking ratio. 10. "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 annually by the U.S. Department of Housing and Urban Development. 11. "Housing development" means one-a development proiect for five or more groups of projects for residential units, including, consistinq of the following: a. The construction of five or more residential units; b. ^A subdivision or common interest development consisting of five or more residential units or unimproved lots; or Gb. A project to either substantially rehabilitate and convert an existing commercial building to residential use^y or c. A proiect to substantially rehabilitate an existing two-family or multiple-family dwelling structure(s), where the result of rehabilitation would beresults in a net increase to five or more in-available residential units. 12. "Incentives or concessions" means such regulatory incentives or concessions as stipulated In State-California Government Code Section 65915(1)65915(k). to Include, but not be limited to, the reduction of site development standards or zone code requirements, approval of mixed use zoning in conjunction with the housing project, or any other regulatory incentive which would result in identifiable, financially sufficient, and actual cost reductions to enable the provision of housing affordable to the designated income group or qualified (senior) resident. 13. "Income" means any monetary benefits that qualify as income in accordance with the criteria and procedures used by the city of Cartsbad housing and neighborhood services department for the acceptance of applications and recertifications for the tenant based rental assistance program, or its successor. 14. "Low-income household" means those households whose gross income is more than fifty percent but does not exceed eighty percent of the median income for San Page 4 DENSITY BONUS REGULATIONS (ZCA 13-01/LCPA 13-02) PROPOSED TEXT CHANGES TO THE ZONING ORDINANCE Diego County as determined annually by the U.S. Department of Housing and Urban Development. 15. "Lower-income household" means low-income, very low-income and extremely low-income households, whose gross income does not exceed eighty percent of the median income for San Diego County as determined annually by the U.S. Department of Housing and Urban Development. 16. "Market-rate unit" means a dwelling unit where the rental rate or sales price is not restricted either by this chapter or by requirements Imposed through other local, state or federal affordable housing programs. 17. "Maximum allowable residenfial density" means the maximum density of the density range allowed by the residenfial general plan land use 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. 18. "Moderate-income household" means those households whose gross income is more than eighty percent but does not exceed one hundred twenty percent of the median income for San Diego County as determined annually by the U.S. Department of Housing and Urban Development. 19. "Qualifying resident" means a resident as defined in Chapter 21.84 of this title and Section 51.2 of the California Civil Code. 20. "Target dwelling unit" means a dwelling unit that will be offered for rent or sale exclusively to and which shall be affordable to the designated income group or qualified (senior) resident, as required by this chapter. 21. "Total units" means the number of dwelling units in a housing development, excluding the density bonus dwelling units awarded pursuant to this chapter or anv other local ordinance granting a greater densitv bonus. 22. "Very low-income household" means a household earning a gross income equal to fifty percent or less of the median income for San Diego County as determined annually by the U.S. Department of Housing and Urban Development. Section 21.86.030 21.86.030 Inclusionary Housing. A. All housing development projects are required to provide affordable housing units in accordance with Chapter 21.85 (Inclusionary Housing) of this title. If an applicant seeks to construct affordable housing to qualify for a density bonus in accordance with the provisions of this chapter, those affordable dwelling units that qualify a housing development for a density bonus aro in addition to, and do not count toward satisfying the inclusionary housing requirements of Chapter 21.85 of this titlel 351 provided to meet the inclusionary requirement Page 5 DENSITY BONUS REGULATIONS (ZCA 13-01/LCPA 13-02) PROPOSED TEXT CHANGES TO THE ZONING ORDINANCE established pursuant to Chapter 21.85 of this title shall be counted toward satisfying the densitv bonus reouirements of this chapter. Section 21.86.040 21.86.040 Density bonus for housing developments. A. The decision-making body shall grant one density bonus, as specified in subsecfion B of this section, and incentives or concessions, as set forth in Section 21.86.050 of this chapter, when an applicant of a housing development of at least five units seeks and agrees to construct at least any one of the following: 1. A minimum of ten percent of the total units of the housing development as restricted and affordable to lower-income households; 2. A minimum of five percent of the total units of the housing development as restricted and affordable to very low-income households; 3. A senior citizen housing development as defined in Secfion 21.84.030(A)(7) of this title and Section 51.3 of the California Civil Code, or mobile home park that limits residency based on age requirements for housing for older persons pursuant to Secfion 798.76 or 799.5 of the California Civil Code; or 4. A minimum of ten percent 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 subsection A of this section, 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 entified shall vary according to the amount by which the percentage of affordable housing units exceeds the percentages established in subsection A of this section, as follows: a. For housing developments meeting the criteria of subsection (A)(1) of this section, the density bonus shall be calculated as follows: Page 6 DENSITY BONUS REGULATIONS (ZCA 13-01/LCPA 13-02) PROPOSED TEXT CHANGES TO THE ZONING ORDINANCE Table A Density Bonus for Housing Developments with Units Affordable to Low-Income Households Percentage of Low-Income Units (Minimum 10% required) Percentage of Density Bonus to be Granted (Additional 1.5% density bonus for each 1 % increase above the 10% minimum) 10 20 11 21.5 12 23 13 24.5 14 26 15 27.5 16 29 17 30.5 18 32 19 33.5 20 35 b. For housing developments meeting the criteria of subsection (A)(2) of this section, 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 Percentage of Density Bonus to be Granted 5 20 6 22.5 7 25 8 27.5 9 30 10 32.5 11 35 c. For housing developments meeting the criteria of subsection (A)(3) of this section, the density bonus shall be twenty percent of the number of senior housing units. Page 7 36 DENSITY BONUS REGULATIONS (ZCA 13-01/LCPA 13-02) PROPOSED TEXT CHANGES TO THE ZONING ORDINANCE d. For housing developments meeting the criteria of subsection (A)(4) of this section, 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 Percentage of Density Bonus to be Granted 10 5 11 6 12 7 13 8 14 9 15 10 16 11 17 12 18 13 19 14 20 15 21 16 22 17 23 18 24 19 25 20 26 21 27 22 28 23 29 24 30 25 31 26 32 27 33 28 34 29 35 30 36 31 Page 8 3o DENSITY BONUS REGULATIONS (ZCA 13-01/LCPA 13-02) PROPOSED TEXT CHANGES TO THE ZONING ORDINANCE 37 32 38 33 39 34 40 35 2. The amount of density bonus to which a housing development Is entified shall not exceed thirty-five percent. 3. The applicant may elect to accept a lesser percentage of density bonus than specified in subsecfion B of this section. 4. If a housing development includes a combinafion of target dwelling unit types that meet two or more of the criteria specified in subsecfion A of this section, the applicant shall elect one applicable density bonus. C. When an applicant for a tentative subdivision map, parcel map, or other housing development approval donates land to the city, as provided for in accordance with this subsection, the applicant shall be entitled to a density bonus for the enfire development, as follows: Table D Percentage of Very Low-Income Units Percentage of Density Bonus to be Granted 10 15 11 16 12 17 13 18 14 19 15 20 16 21 17 22 18 23 19 24 20 25 21 26 22 27 23 28 24 29 25 30 Page 9 S7 DENSITY BONUS REGULATIONS (ZCA 13-01/LCPA 13-02) PROPOSED TEXT CHANGES TO THE ZONING ORDINANCE 26 31 27 32 28 33 29 34 30 35 1. A density bonus granted pursuant to this subsection shall not exceed thirty-five percent. 2. If an applicant seeks both the density bonus required pursuant to this subsection and subsection A of this section, both density bonuses shall be granted up to a maximum combined density bonus of thirty-five percent. 3. An applicant shall be eligible for the density bonus described in this subsection only if all of the following conditions are met: a. The land is donated and transferred to the city no later than the date of approval of the final subdivision map, parcel map or housing development applicafion. 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 ten percent 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 forty units, and has the appropriate; 1) general plan land use designation: 2) zoning classification with appropriate development standards for development at the densitv described in paragraph (3) of subdivision (c) of Section 65583.2 of the California Government Code.and general plan land use designation, and 3) is or will be served by adequate public facilifies and infrastructure. 4-. The land shall have appropriate zoning and development standards to make the development of the affordable units feasible. ed. No later than the date of approval of the final subdivision map, paroel map, or housing development, tThe 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, not later than the date of approval of the final subdivision map, parcel map, or housing development, 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. fe. The transferred land and the affordable units shall be subject to a deed restriction ensuring continued affordability of the units consistent with Section 21.86.100 of this chapter, which shall be recorded on the property at the fime of dedicationthe transfer. Page 10 DENSITY BONUS REGULATIONS (ZCA 13-01/LCPA 13-02) PROPOSED TEXT CHANGES TO THE ZONING ORDINANCE §f. The land is transferred to the city or to a housing developer approved by the city. The city may require the applicant to Identify and transfer the land to the developer. hg. The transferred land shall be within the boundary of the proposed development or, if the city agrees, within one-quarter mile of the boundary of the proposed development. h. Prior to the approval of the final subdivision map, parcel map or housing development application, the developer shall identify a proposed source of funding for the very low income units. D. In cases where an applicant requests a density bonus of more than what is specified in this section, the city council may grant the requested additional density bonus, subject to the following: 1. The project meets the requirements of this chapter. 2. The additional density bonus shall be considered an incentive, in accordance with Secfion 21.86.050 of this chapter. 3. The city council may require some portion of the additional density bonus units to be designated as target dwelling units. E. The city council may grant a proportionately lower density bonus than what Is specified by this section for developments that do not meet the requirements of this chapter. F. The density bonus dwelling units granted pursuant to this chapter shall not be Included when determining the number of housing units required by this chapter to be reserved for income-restricted households. G. 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. H. For the purposes of calculating a density bonus, the residential units shall be on contiguous sites that are the subiect of one development application in a housing development^ but do not have to be based upon Individual subdivision maps or parcels. I. 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. J. A density bonus housing agreement shall be made a condition of the discretionary permits (i.e., tentative maps, parcel maps, planned unit developments, condominium permits, site development plans and redevelopment permits) for all housing developments that request a density bonus and incentives or concessions. The relevant terms and conditions of the density bonus housing agreement shall be filed and recorded as a deed restriction on those individual lots or units of a project development which are designated for the locafion of target dwelling units. The density bonus housing agreement shall be consistent with Section 21.86.130 of this chapter. Page 11 DENSITY BONUS REGULATIONS (ZCA 13-01/LCPA 13-02) PROPOSED TEXT CHANGES TO THE ZONING ORDINANCE Section 21.86.050 21.86.050 Incentives and concessions for housing developments. A. When an applicant requests a density bonus pursuant to Section 21.86.040(A) of this chapter, the decision-making body shall grant incentives or concessions, subject to the following: 1. An applicant shall submit a proposal for any specific incentives or concessions requested pursuant to this section. 2. The decision-making body shall grant the incentive(s) or concession(s) requested by the applicant unless, based upon substantial evidence, eithef-anv of the following findings are made in writing: a. The incentive or concession is not required in order to provide for affordable housing as defined in Section 21.86.020(A)(1) of this chapter. b. The incentive or concession would have a specific adverse impact upon public health and safety or the physical environment, or on any real property that Is listed in the California Register of Historical Resources, and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact. As used in this paragraph, and as defined in paragraph (2) of subdivision (d) of Secfion 65589.5 of the California Government Code, a "specific, adverse impact" means a significant, quantifiable, direct and unavoidable impact, based on objective, identified written public health or safety standards, policies, or condifions as they existed on the date the application was deemed complete. c. The incentive or concession would be contrary to state or federal law. 3. The applicant shall receive the following number of incentives or concessions: a. One incentive or concession for projects that include at least ten percent of the total units for lower-income households, at least five percent for very low-Income households, or at least ten percent for persons and families of moderate income in a common interest development. b. Two incentives or concessions for projects that Include at least twenty percent of the total units for lower-Income households, at least ten percent for very low- income households, or at least twenty percent for persons and families of moderate income in a common interest development. c. Three Incentives or concessions for projects that include at least thirty percent of the total units for lower-income households, at least fifteen percent for very low- Income households, or at least thirty percent for persons and families of moderate income in a common interest development. 4. An incentive or concession may include any of the following: Page 12 DENSITY BONUS REGULATIONS (ZCA 13-01/LCPA 13-02) PROPOSED TEXT CHANGES TO THE ZONING ORDINANCE a. A reduction in site development standards or a modification of zoning code or architectural design requirements (excluding State Building Standards), that results in identifiable, financially sufficient and actual cost reductions. A reduction/modification to standards or requirements may include, but is not limited to, a reduction In minimum lot size, setback requirements, and/or in the ratio of vehicular parking spaces that would othen/vise be required. b. Approval of mixed use zoning in conjunction with the housing development if: I) commercial, office. Industrial or other land uses will reduce the cost of the housing development; and ii) the commercial, office. Industrial, or other land uses are compatible with the housing development and the existing or planned future development in the area where the proposed project will be located. c. Other regulatory incentives or concessions that result in identifiable, financially sufficient and actual cost reductions. d. The city council may, but is not required to, provide direct financial incentives. Including the provision of publicly owned land, or the waiver of fees or dedicafion requirements. 5. The applicant shall show that the requested incentlve(s) or concesslon(s) will result in Identifiable, financially sufficient, and actual cost reductions. Section 21.86.060 21.86.060 Waiver or reduction of development standards. A. In addifion to the incentives or concessions permitted by Secfion 21.86.050 of this chapter, an applicant may seek a waiver or reduction of development standards that will have the effect of physically precluding the construction of a housing development meeting the criteria of Secfion 21.86.040(A) of this chapter at the densities or with the incentives or concessions permitted by this chapter. 4: The applicant shall show that the requested waiver or reduction of development standards is necessary to make the housing units economically feasible. 21. The applicant shall provide evidence that the development standard(s) requested to be waived or reduced will have the effect of physically precluding the construction of a housing development at the densities or with the incentives or concessions permitted by this chapter. 2. A proposal for the waiver or reduction of development standards pursuant to this section shall neither reduce nor increase the number of incentives or concessions to which the applicant is entitled pursuant to Section 21.86.050 of this chapter. 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 wrifing: Page 13 DENSITY BONUS REGULATIONS (ZCA 13-01/LCPA 13-02) PROPOSED TEXT CHANGES TO THE ZONING ORDINANCE 4^ The waiver or reduction of development standards is not necessary to mako tho housing units economioally feasible. 21. The development standard(s) requested to be waived or reduced will not have the effect of physically precluding the construction of a housing development at the densities or with the incentives or concessions permitted by this chapter. S2. The requested waiver or reduction of development standards would have a specific adverse impact upon public health and safety or the physical environment, or on any real property that is listed in the California Register of Historical Resources, and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse Impact. As used In this subsection, and as defined in paragraph (2) of subdivision (d) of Secfion 65589.5 of the California Government Code, a "specific, adverse impact" means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified written public health or safety standards, policies, or conditions as they existed on the date the application was deemed complete. 3. The waiver or reduction of development standards would be contrary to state or federal law. Section 21.86.090 21.86.090 Density bonus housing standards. A. Required target dwelling units shall be constructed concurrent with market-rate dwelling units unless both the final decision-making authority of the city and the developer/applicant agree within the density bonus housing agreement to an alternative schedule for development. B. Whenever feasible, target dwelling units and density bonus dwelling units should be built on-site (within the boundary of the proposed development) and, whenever reasonably possible, be distributed throughout the project site. C. Whenever feasible, target dwelling units should be located on sites that are In proximity to, or will provide access to, employment opportunities, urban services, or major roads or other transportation and commuter rail facilities (i.e., freeways, bus lines) and that are compatible with adjacent land uses. D. Whenever feasible, target dwelling units should vary in size and number of bedrooms, in response to affordable housing demand priorities of the city. E. Density bonus projects shall comply with ali applicable development standards, except those which may be modified as an Incentive or concession, or as othen/vise provided for in this chapter. In addition, all units must conform to the requirements of the applicabie building and housing codes. The design of the target dwelling units shall be reasonably consistent or compatible with the design of the total project development in terms of appearance, materials and finished quality. Page 14 DENSITY BONUS REGULATIONS (ZCA 13-01/LCPA 13-02) PROPOSED TEXT CHANGES TO THE ZONING ORDINANCE F. No building permit shall be Issued, nor any development approval granted, for a development which does not meet the requirements of this chapter. No target dwelling unit shall be rented or sold except In accordance with this chapter. G. Upon the request of the applicant, the parking rafio (inclusive of handicap and guest parking) for a housing development that conforms to the requirements of Section 21.86.040(A) of this chapter 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) of this chapter, the parking standards specified in Chapter 21.44 of this code shall apply. 1. If the total number of parking spaces required for a development is other than a whole number, the number shall be rounded up to the next whole number. 2. For purposes of this section, a housing development may provide "on- site" parking through tandem parking or uncovered parking, but not through on-street parking. 3. The applicant may request additional parking incentives or concessions beyond those provided in this section, subject to the findings specified in Secfion 21.86.050(A)(2) of this chapter. Table E Dwelling Unit Size On-Site Partying Ratio 0-1 bedrooms 1 space per unit 2-3 bedrooms 2 spaces per unit 4 or more bedrooms 2.5 spaces per unit Section 21.86.100 21.86.100 Affordability tenure. A. All low- and very low-Income dwelling units that qualified the housing project for a density bonus shall remain restricted and affordable to the designated group for a period of at least thirty years, or a longer period of time if required by the construction or mortgage financing assistance program, mortgage Insurance program, or rental subsidy program. B. All moderate-income dwelling units directly related to the receipt of a density bonus for a common interest development shall be subject to the following: 1. The Initial occupant(s) of the target dwelling unit(s) shall be persons and families of moderate Income, and the units shall be offered at an affordable housing cost that does not exceed the allowable housing expenses for a moderate-income household. 2. Unless In confiict 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: Page 15 DENSITY BONUS REGULATIONS (ZCA 13-01/LCPA 13-02) PROPOSED TEXT CHANGES TO THE ZONING ORDINANCE a. Upon resale, the seller of the unit shall retain the value of any improvements, the down_payment, and the seller's proportionate share of appreciation. b. Upon resale, the city shall recapture any inifial subsidy and its proportionate share of appreciation, which shall then be used within three five years for any of the purposes described in subdivision (e) of Secfion 33334.2 of the Health and Safety Code that promote homeownership. i. For the purposes of this subsecfion, the city's inifial subsidy shall be equal to the fair market value of the home at the time of Initial sale minus the initial sale price to the moderate-income household, plus the amount of any downpayment assistance or mortgage assistance. If upon resale the market value Is lower than the initial market value, then the value at the time of the resale shall be used as the initial market value. ii. For the purposes of this subsection, the city's proportionate share of appreciation shall be equal to the ratio of the city's initial subsidy to the fair market value of the home at the time of initial sale. 3. If the city provides a direct financial contribution to a common interest development through participation in cost of infrastructure, write-down of land costs, or subsidizing the cost of construction, the target dwelling unit(s) shall remain affordable to the designated income group for at least thirty years. C. For rental projects, the city or its designee shall have a one-time first right of refusal to purchase any project containing affordable units offered for sale at the end of the minimum tenure of affordability. The first right of refusal to purchase the rental project shall be submitted in wrifing to the housing and neighborhood services director. Within ninety days of its receipt, the city shall Indicate its intent to exercise the first right of refusal for the purpose of providing affordable housing. Section 21.86.110 21.86.110 Application process. A. The granfing of a density bonus, incentive or concession, pursuant to this chapter, shall not be interpreted, in and of Itself, to require a general plan amendment, zone code amendment, local coastal plan amendment, zone change or other discretionary approval. B. Preliminary Application. A preliminary application may be submitted prior to the submittal of any formal development application for a housing project that includes a request for a density bonus, incentive(s) or concession(s). The preliminary application should include the following infonnation: 1. A brief description of the proposal including the number of target dwelling units and density bonus units proposed; 2. The zoning, general plan designations and assessors parcel number(s) of the project site; Page 16 DENSITY BONUS REGULATIONS (ZCA 13-01/LCPA 13-02) PROPOSED TEXT CHANGES TO THE ZONING ORDINANCE 3. A site plan, drawn to scale, which includes: building footprints, driveway and parking layout, existing contours and proposed grading; 4. A letter Identifying what specific density bonus, incentives or concessions (e.g., standards modifications, additional density bonus, or fee waiver, etc.) are being requested of the city; and 5. The planning division shall provide to an applicant/developer, a letter that Identifies project issues of concern and the procedures for compliance with this chapter. C. Formal Application. A request for a density bonus, incentlve(s) or concesslon(s), pursuant to this chapter, does not require a discretionary approval. The request shall be processed as part of the development applicafions for a housing development, as othenA/ise required in other sections of this code (e.g., site development plan, tentative map, parcel map, planned unit development, conditional use permit, redevelopment permit, etc.). 1. If the project involves a request for direct financial incentives from the city, then any action by the planning commission on the application shall be advisory only, and the city council shall have the authority to make the final decision on any discretionary permits related to the project. 2. The following information shall be Included with the development applicafion(s) required for the project: a. A legal description of the total site proposed for development of the target dwelling units Including a statement of present ownership and present and proposed zoning; b. A letter signed by the present owner stating what specific density bonus, incentives, or concessions (e.g., standards modifications, additional density bonus, or fee waiver, etc.) are being requested from the city; c. A detailed vicinity map showing the project location and such details as the location of the nearest commercial retail, transit stop, potential employment locations, park or recreation facilities or other social or community service facilities; d. Site plans, designating the total number of units proposed on the site, including the number and location of target dwelling units and density bonus dwelling units, and supporting plans per the application submittal requirements; e. In the case of a request for any incentive(s) or concession(s), a pro forma for the proposed project to justify the request, in accordance with the provisions of Section 21.86.050 of this chapter; f. In the case of a request for a waiver or reduction of development standards, pursuant to Section 21.86.060 of this chapter, a pro forma for the proposed project showing that the waiver or reduction is necessary to make the housing units economically feasible, and evidence that the development standard being waived or reduced will have the effect of physically precluding the construction of the development at the densities or with the concessions or incentives permitted by this chapter; Page 17 DENSITY BONUS REGULATIONS (ZCA 13-01/LCPA 13-02) PROPOSED TEXT CHANGES TO THE ZONING ORDINANCE g. In the case of a condominium conversion request, a report documenting the following information for each unit proposed to be converted: i. The monthly Income of tenants of each unit throughout the prior year, il. The monthly rent for each unit throughout the prior year, and iii. Vacancy information for each unit throughout the prior year. Section 21.86.120 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 Secfion 21.86.060, the requested waiver or reduction of development standard(s) Is necessary to make the housing units economioally feasibleavoid physically precluding the construction of a housing development at the densities or with the incentives or concessions permitted bv this chapter. 4. The requested incentive(s) or concesslon(s), and/or walver(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 reducfion 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 Carisbad Local Coastal Program Land Use Plan(s), with the exception of density. Page 18 DENSITY BONUS REGULATIONS (ZCA 13-01/LCPA 13-02) PROPOSED TEXT CHANGES TO THE ZONING ORDINANCE 7. The reguested incentive(s) or concession(s). and/or waiver(s) or reduction(s) of development standards would be contrarv to state or federal law. Page 19 H7 EXHIBIT 7 Planning Commission Minutes December 4,2013 Page 2 PLANNING COMMISSION PUBLIC HEARING Chairperson Siekmann asked Mr. Neu to introduce the first item and opened the public hearing on Agenda Items 3, 4 and 6. 3. SDP 13-04/PUD 13-07/CDP 13-16/MS 13-05 - BEACHWALK AT JUNIPER - Request for approval of a Site Development Plan, Planned Development Permit, Coastal Development Permit, and Tentative Parcel Map to demolish an existing single-family home and shed to allow for the development of a four-unit multiple-family residential air- space condominium project on a 0.202 acre infill site located at 369 Juniper Avenue, within the Mello 11 Segment of the Local Coastal Program and Local Facilities Management Zone 1. The project site is not within the appealable area of the California Coastal Commission. The City Planner has determined that this project is exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Section 15332 "In-Fill Development Projects" of the State CEQA Guidelines and will not have any adverse significant impact on the environment. 4. CUP 13-09 - ICETOWN SKATEOPLEX - Request for a Conditional Use Permit to allow an ice skating training facility in an existing vacant building with proposed minor improvements on property located at 2283 Cosmos Court, in the P-M Zone and in Local Facilities Management Zone 5. The City Planner has determined that this project is exempt from the requirements of the California Environmental Quality Act (CEQA) per Section 15301, "Existing Facilities," of the State CEQA Guidelines and will not have any adverse significant impact on the environment. 6. ZCA 13-01/LCPA 13-02 - DENSITY BONUS REGULATIONS — A request for recommendation of approval of a Zone Code Amendment and Local Coastal Program Amendment to amend the city's Zoning Ordinance to make the city's regulation of density bonuses consistent with state and case law. Mr. Neu stated Agenda Items 3, 4 and 6 would normally be heard in a public hearing context; however, the projects appear to be minor and routine in nature with no outstanding issues and Staff recommends approval. He recommended that the public hearing be opened and closed, and that the Commission proceed with a vote as a consent item. Staff would be available to respond to questions if the Commission or someone from the public wished to comment on Agenda Item 3, 4 or 6. Chairperson Siekmann asked if any member of the audience wished to address Agenda Item 3, 4 or 6. Seeing none, she opened and closed public testimony. MOTION ACTION: Motion by Commissioner Black and duly seconded, that the Planning Commission approve Agenda Items 3, 4 and 6. VOTE: 7-0 AYES: Chairperson Siekmann, Commissioner Anderson, Commissioner Black, Commissioner L'Heureux, Commissioner Schumacher, Commissioner Scully, and Commissioner Segall NOES: None ABSENT: None ABSTAIN: None Chairperson Siekmann asked Mr. Neu to introduce the next item, and opened the public hearing on Agenda Item 2. Commissioner L'Heureux stated that due to a conflict of interest of living within the 600 ft. radius of the project, he would need to recuse himself from the project. NOTICE OF PUBLIC HEARING NOTICE IS HEREBY GIVEN to you, because your interest may be affected, that the City Council of the City of Carisbad will hold a public hearing at the Council Chambers, 1200 Carisbad Village Drive, Carisbad, California, at 6:00 p.m. on Tuesday, February 25, 2014, to consider approval of a Municipal Code Amendment, Zone Code Amendment and Local Coastal Program Amendment to amend the city's Zoning Ordinance to make the city's regulation of density bonuses consistent with state and case law. Whereas, on December 4, 2013 the City of Carisbad Planning Commission voted 7-0 to recommend approval of a Zone Code Amendment and Local Coastal Program Amendment to amend the city's Zoning Ordinance to make the city's regulation of density bonuses consistent with state and case law. 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 Friday, February 21, 2014. If you have any quesfions, please contact Kevin Pointer in the Planning Division at (760) 602- 4620 or kevin.pointer@cartsbadca.gov. If you challenge the Municipal Code Amendment, 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 correspondence delivered to the City of Carisbad, Attn: City Clerk's Office, 1200 Carisbad Village Drive, Carisbad, CA 92008, at or prior to the public hearing. CASE FILE: MCA 13-03/ZCA 13-01/LCPA 13-02 CASE NAME: DENSITY BONUS REGULATIONS PUBLISH: February 14, 2014 CITY OF CARLSBAD CITY COUNCIL PROOF OF PUBLICATION (2010 & 2011 C.C.P.) This space is for the County Clerk's Filing Stamp 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 princip of the printer of Proof of Publication of UT - North County Formerly known as the North Count/ Tin" which newspaper has been adjudicatec newspaper of general circulation by the 5 Court of the County of San Diego, S California, for the City of Oceanside and the Escondido, Court Decree numbers 171 172171, for the County of San Diego, t notice of which the annexed is a printed c( in type not smaller than nonpariel), ha published in each regular and entire issue newspaper and not in any supplement the the following dates, to-wit: February 14*^ 2014 I certify (or declare) under penalty of per] the foregoing is true and correct. 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, February 25, 2014, to consider approval of a Municipal Code Amendment, Zone Code Amendment and Local Coastal Program Amendment to amend the city's Zoning Ordinance to make the city's regulation of density bonuses consistent with state and case law. Whereas, on December 4, 2013 the City of Carlsbad Planning Commission voted 7-0 to recommend approval of a Zone Code Amendment and Local Coastal Program Amendment to amend the city's Zoning Ordinance to make the city's regulation of density bonuses consistent with state and case law. Those persons wishing to speal< on this proposal are cordially invited to attend the public hearing. Copies of the agenda bill will be available on and after Friday, February 21, 2014. If you have any questions, please contact Kevin Pointer in the Planning Division at (760) 602-4620 or kevin.pointer@carlsbadca.gov. If you challenge the Municipal Code Amendment, 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 correspondence 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: MCA 13-03/ZCA 13-01/LCPA 13-02 CASE NAME: DENSITY BONUS REGULATIONS PUBLISH: February 14, 2014 CITY OF CARLSBAD CITY COUNCIL Dated at Oceanside, California On This 14^^ day February 2014 Jane Allshouse NORTH COUNTY TIMES Legal Advertising uio3'AieAe'/wwwwM • ^091-5 ©AMiAV iueqeb 8| zas\\\ir B EDWIN ROMERO, CHAIRPERSON 1095 BARONA RD LAKESIDE CA 92040 BUREAU OF INDIAN AFFAIRS 2800 COTTAGE WAY SACRAMENTO CA 95825 BUSINESS, TRANS & HSG AGENCY 915 CAPITOL MALL #3508 SACRAMENTO CA 958144801 CA COASTAL COMMISSION STE 103 7575 METROPOLITAN DR SAN DIEGO CA 92108 CA DEPT OF TRANSPORTATION DISTRICT 11-DIVISION OF PLANNING/DEVELOPMENT REVIEW 4050 TAYLOR STREET, MS-240 SAN DIEGO CA 92110 CHANNEL ISLANDS NATL PARK SUPERINTENDENT'S OFFICE 1901 SPINNAKER DR SAN GUENA VENTURA CA 93001 CITY OF ENCINITAS 505 S VULCAN AV ENCINITAS CA 92024 COASTAL CONSERVANCY STE 1100 1330 BROADWAY OAKU\NDCA 94612 COUNTY OF SD SUPERVISOR RM 335 1600 PACIFIC SAN DIEGO CA 92101 DEPT OF DEFENSE LOS ANGELES DIST ENG PO 80X2711 LOS ANGELES CA 90053 DEPT OF FISH & GAME ENVSERV DIV PO 80X 944246 SACRAMENTO CA 942442460 DEPT OF FOOD & AGRICULTURE AGRICULTURAL RESOURCES RM100 1220 NST SACRAMENTO CA 95814 DEPT OF FORESTRY ENV COORD PO 80X944246 SACRAMENTO CA 942442460 DEPT OF HOUSING & URBAN DEV REGION IX ENVIRONMENTAL OFFICER 611 WEST SIXTH ST, STE 811 LOS ANGELES CA 90017 DEPT OF JUSTICE DEPT OF ATTY GEN RM 700 110 WEST A ST SAN DIEGO CA 92101 FED AVIATION ADMIN WESTERN REG PO 80X92007 LOS ANGELES CA FEDERAL ENERGY REGULATORY COMMISSION 1001ST ST., STE 2300 SAN FRANCISCO CA 941053084 MARINE RESOURCES REG DR & G ENV SERVICES SPR STEJ 4665 LAMPSON AVE LOSAU\MITOSCA 907205139 OFF OF PL«^NNING & RESEARCH OFF OF LOCAL GOV AFFAIRS PO 80X3044 SACRAMENTO CA 958123044 SAN FRANCISCO BAY CONSERV & DEV COM STE 2600 50 CAUFORNIA ST SAN FRANCISCO CA 941114704 SANDAG EXEC DIRECTOR STE 800 1ST INTLPLZ401 BST SAN DIEGO CA 92101 SD COUNTY PLANNING & LAND USE DEPT STE 310 5510 OVERLAND AVE SAN DIEGO CA 921231239 SDGE 8315 CENTURY PARK CT SAN DIEGO CA 92123 STATE LANDS COMMISSION STE 1005 100 HOWEAV SACRAMENTO CA 958258202 US ARMY CORPS OF ENGINEER 1455 MARKET STFL17 SAN FRANCISCO CA 94103 US 8UREAU OF LAND MGMT STE RM W 2800 COTTAGE WY SACRAMENTO CA 95825 US BUREAU OF RECLAMATION 27708 JEFFERSON AVE, STE 202 TEMECUUCA 92590 US FISH & WILDUFE SERVICES 2800 COTTAGE WAY STE W-2605 SACRAMENTO CA 95825 USDA RURAL DEVELOPMENT DEPT 4169 430 G ST DAVIS CA 95606 WATER RESOURCES CONTROL 80ARD PO 80X100 SACRAMENTO OA 95801 ®09iS ©AdSAV Hx9Bp3 dn-dod dsodxd ovauiifiuoiepuaa (D091S «JB|dujai @AjaAV asn siaqn A^Odd Ase3 CARLSBAD UNIFIED SCHOOL DISTRICT 6225 EL CAMINO REAL CARLSBAD CA 92011 {ap a4ni|3ei| ej f zaiida^ SAN MARCOS SCHOOL DISTRICT STE 250 255 PICO AV SAN MARCOS CA 92069 ap suas • ®09VSi ©AMdAV •ueqeo a] Zdsi\ii(\ ja|9d e sd|pe^ sauanbj^p ENCINITAS SCHOOL DISTRICT 101 RANCHO SANTA FE RD ENCINITAS CA 92024 SAN DIEGUITO SCHOOL DISTRICT 710 ENCINITAS BLVD ENCINITAS CA 92024 LEUCADIA WASTE WATER DISTRICT TIM JOCHEN 1960 LA COSTA AV CARLSBAD CA 92009 OLIVENHAIN WATER DISTRICT 1966 OLIVENHAIN RD ENCINITAS CA 92024 CITY OF ENCINITAS 505 S VULCAN AV 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 200 CIVIC CENTER DR VISTA CA 92084 VALLECITOS WATER DISTRICT 201 VALLECITOS DE ORO SAN MARCOS CA 92069 l.P.U.A. SCHOOL OF PUBLIC ADMIN AND URBAN STUDIES SAN DIEGO STATE UNIVERSITY SAN DIEGO CA 92182-4505 STATE OF CALIFORNIA DEPT OF FISH AND WILDLIFE 3883 RUFFIN RD SAN DIEGO CA 92123 REGIONAL WATER QUALITY STE 100 9174 SKY PARK CT SAN DIEGO CA 92123-4340 SD COUNTY PLANNING STE 310 5510 OVERLAND AV SAN DIEGO CA 92123-1239 SAN DIEGO LAFCO STE 200 9335 HAZARD WAY SAN DIEGO CA 92123 AIR POLLUTION CONTROL DISTRICT 10124 OLD GROVE RD SAN DIEGO CA 92131 SANDAG STE 800 401 B ST SAN DIEGO CA 92101 U.S. FISH & WILDLIFE STE 250 2177 SALKAV CARLSBAD CA 92011 CA COASTAL COMMISSION ATTN KANANI BROWN STE 103 7575 METROPOLITAN DR SAN DIEGO CA 92108-4402 AIRPORT LAND USE COMMISSION SAN DIEGO CO. AIRPORT AUTHORITY PO BOX 82776 SAN DIEGO CA 92138-2776 CARLSBAD CHAMBER OF COMMERCE 5934 PRIESTLEY DR CARLSBAD CA 92008 BIA OF SAN DIEGO COUNTY STE 110 9201 SPECTRUM CENTER BLVD SAN DIEGO CA 92123-1407 City Clerk City of Carlsbad 1200 Carlsbad Village Drive Carlsbad, CA 92008 CITY OF CARLSBAD PUBLIC WORKS/ENGINEERING DEPT- PROJECT ENGINEER CITY OF CARLSBAD PROJECT PLANNER MICHAEL MCSWEENEY - BIASD STE 110 9201 SPECTRUM CENTER BLVD SAN DIEGO CA 92123-1407 HjLa6p3 dn-dod asodxa oiaui.tfiuQjjrpuaa f (g,09lS aiB|diuai ^AJSAV asn AFFIDAVIT OF MAILING NOTICE OF PUBUC HEARING TO: CITY CLERK DATE OF PUBLIC HEARING: e^./^.'S^^ SUBJECT: P^S(T-f (jfoKOS. L.(KX\OMS LOCATION: DATE NOTICES MAILED TO PROPERTY OWNERS: <3^(H-^«^ NUMBER MAILED: S'J I declare under penalty of perjury under the laws of the State of California that I am employed by the City of Carisbad and the foregoing is true and correct. CITY CLERK'S OFFICE (Signature) ^ (D^te) SENT TO FOR PUBLICATION VIA E-MAIL TO: 10^Union Tribune C0 NQrth County Times Ci^CLS^ PUBLICATION DATE: Union Tribune c^/(^^f^ North County Times '^/l^ I declare under penalty of perjury under the laws of the State of California that I am employed by the City of Carisbad in the City Clerk's Office and the foregoing is true and correct. Date: ^ (Signature) Attachments: 1) Mailing Labels 2) Notice w/ attachments Density Bonus Regulations MCA 13-03/ZCA 13-01/LCPA 13-02 Kevin Pointer February 25, 2014 Project Objectives •To make the city’s regulation of density bonuses consistent with: –AB 2280 Saldaña (2008) –AB 806 Torres (2012) –LUNA v. County of Napa (2013) AB 2280 Saldaña (2008) •Requires city to grant concession or incentive unless it is contrary to state or federal law. •Eliminates requirement that developer show the waiver or modification is necessary to make project economically feasible. •Requires the city identify a source of income for very low income units when a developer donates land to the city for a density bonus. 3 AB 806 Torres (2012) •Modifies references to state law 4 LUNA v. County of Napa •Requires that affordable housing units must count toward satisfying density bonus standards 5 Recommendation That the City Council INTRODUCE Ordinance CS-241 APPROVING a Municipal Code Amendment (MCA 13-03) and INTRODUCE Ordinance CS-242 APPOVING a Zone Code Amendment (ZCA 13-01) and ADOPT Resolution 2014-032 APPROVING a Local Coastal Program Amendment (LCPA 13-02) to amend Titles 20 and 21 of the city’s Municipal Code to make the city’s regulation of density bonuses consistent with state and case law. 6