HomeMy WebLinkAbout2020-01-14; City Council; ; Adoption of Ordinance No. CS-368 updating the city's lnclusionary Housing and Density Bonus Zoning OrdinancesJan. 14, 2020 Item #6 Page 1 of 33
CITY COUNCI L
Staff Report
Meeting Date:
To:
From:
Staff Contact:
Jan. 14,2020
Mayor and City Council
Scott Chadwick, City Manager
Sheila Cobian, City Clerk Services Manager
sheila.cobian@carlsbadca.gov or 760-434-2917
CA Review ()>v
Subject: Adoption of Ordinance No. CS-368 updating the city's lnclusionary
Housing and Density Bonus Zoning Ordinances
Recommended Action
Adopt Ordinance No. CS-368 approving a Zone Code Amendment and Local Coastal Program
Amendment to update the city's lnclusionary Housing and Density Bonus Zoning Ordinances to
reflect changes in state law.
Executive Summary /Discussion
Ordinance No. CS-368 was introduced and first read at the City Council meeting held on Dec ..
17, 2019. On a motion by Mayor Pro Tern Bhat-Patel, seconded by Council Member Blackburn,
the City Council voted 4/0 to introduce the Ordinance. The second reading allows the City
Council to adopt the Ordinance which will become effective in areas outside the Coastal Zone
thirty days after adoption. In areas inside the Coastal Zone, the Ordinance will become
effective thirty days after its adoption or upon Coastal Commission approval of LCPA 2017-
0001, whichever occurs later.
Fiscal Analysis
There is no anticipated fiscal impact from this item.
Next Steps
The city clerk will have the Ordinance or a summary of the Ordinance published in a newspaper
of general circulation within fifteen days following adoption of the ordinance.
Environmental Evaluation (CEQA)
The city planner has determined that the project is a minor zone code and general plan
amendment that refines or clarifies existing land use standards and would have no significant
effect on the environment. Therefore, the project is exempt from the California Environmental
Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3) and Carlsbad Municipal
Code Section 19.04.070 A.1.c.i.
Public Notification and Outreach
This item was noticed in accordance with the Ralph M. Brown Act and was available for viewing
at least 72 hours prior to the meeting date.
Exhibits
1. Ordinance No. CS-368
ORDINANCE NO. CS-368
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, APPROVING A ZONE CODE AMENDMENT AND LOCAL
COASTAL PROGRAM AMENDMENT TO UPDATE THE CITY'S
INCLUSIONARY HOUSING AND DENSITY BONUS ZONING ORDINANCES TO
REFLECT CHANGES IN STATE LAW.
CASE NAME: INCLUSIONARY HOUSING AND DENSITY BONUS
AMENDMENTS
CASE NO.: ZCA 2017-0001/LCPA 2017-0001 (PUB17Y-0004)
WHEREAS, the city planner has prepared a Zone Code Amendment (ZCA 2017-0001)/Local
Coastal Program Amendment (LCPA 2017-0001) pursuant to Chapter 21.52 of the Carlsbad Municipal
Code, Section 30514 of the Public Resources Code, and Section 13551 of California Code of Regulations
Title 14, Division 5.5; and
WHEREAS, the Carlsbad Zone Code is the implementing Ordinance ofthe Carlsbad Local Coastal
Program, and therefore, an amendment to the Zone Code also constitutes an amendment to the Local
Coastal Program; and
WHEREAS, pursuant to California Coastal Commission Regulations, a six-week public review
period for the Local Coastal Program Amendment began on June 7, 2019, and ended on July 19, 2019;
and
WHEREAS, the Airport Land Use Commission has reviewed the Zone Code Amendment for
consistency; and
WHEREAS, on Oct. 2, 2019, the Planning Commission held a duly noticed Public Hearing as
prescribed by law to consider ZCA 2017-0001/LCPA 2017-0001; and
WHEREAS, the Planning Commission adopted Planning Commission Resolution No. 7334
recommending to the City Council that ZCA 2017-0001/LCPA 2017-0001 be approved; and
Jan. 14, 2020 Item #6 Page 2 of 33
WHEREAS, on Oct. 10, 2019, the Housing Commission held a duly noticed Public Hearing as
prescribed by law to consider ZCA 2017-0001/LCPA 2017-0001; and
WHEREAS, the Housing Commission adopted Housing Commission Resolution No. 2019-002
recommending to the City Council that ZCA 2017-0001/LCPA 2017-0001 be approved; and
WHEREAS, the City Council of the City of Carlsbad held a duly noticed Public Hearing as
prescribed by law to consider ZCA 2017-0001/LCPA 2017-0001; 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, including written public
comments, if any, related to ZCA 2017-0001/LCPA 2017-0001; and
NOW THEREFORE, the City Council of the City of Carlsbad, California, ordains as
follows that:
1. The above recitations are true and correct.
2. The findings of the Planning Commission in Planning Commission Resolution No.
7334 shall also constitute the findings of the City Council.
3. Carlsbad Municipal Code Section 21.85.010 is amended to read as follows:
21.85.010 Purpose and intent.
The purpose and intent of this chapter is as follows:
A. It is an objective of the city, as established by the housing element of the city's general plan,
to ensure that all residential development, including all master planned and specific planned
communities and all residential subdivisions provide a range of housing opportunities for all
identifiable economic segments of the population, including households of lower and moderate
income. It is also the policy of the city to:
1. Require that a minimum of fifteen percent of all approved residential development as
set forth in Section 21.85.030(A) be restricted to and affordable to lower-income
households; subject to adjustment based on the granting of an inclusionary credit;
2. Require that for those developments which provide ten or more units affordable to
lower-income households, at least ten percent of the lower-income units shall have three
or more bedrooms;
3. Under certain conditions, allow alternatives to on-site construction as a means of
providing affordable units; and
Jan. 14, 2020 Item #6 Page 3 of 33
4. In specific cases, allow inclusionary requirements to be satisfied through the payment
of an in-lieu fee as an alternative to requiring inclusionary units to be constructed.
B. It is the purpose of this chapter to ensure the implementation of the city objective and policy
stated in subsection A.
C. Nothing in this chapter is intended to create a mandatory duty on the part of the city or its
employees under the Government Tort Claims Act and no cause of action against the city or its
employees is created by this chapter that would not arise independently of the provisions of this
chapter. (Ord. CS-109 § II, 2010; Ord. NS-794 § 2, 2006; Ord. NS-535 § 1, 2000)
4. Carlsbad Municipal Code Section 21.85.030 is amended to read as follows:
21.85.030 lnclusionary housing requirement.
The inclusionary housing requirements of this chapter shall apply as follows:
A. This chapter shall apply to all housing development projects that result in the construction of
new residential units, including mixed use projects that include residential units and the
conversion of apartments to condominiums.
B. For any residential development or development revision of seven or more units as set forth
in subsection A, not less than fifteen percent of the total units approved shall be constructed
and restricted both as to occupancy and affordability to lower-income households.
C. For those developments which are required to provide ten or more units affordable to lower-
income households, at least ten percent of the lower-income units shall have three or more
bedrooms.
D. This chapter shall not apply to the following:
1. Existing residences which are altered, improved, restored, repaired, expanded or
extended, provided that the number of units is not increased, except that this chapter shall
pertain to the subdivision of land for the conversion of apartments to condominiums;
2. Conversion of a mobile home park pursuant to Section 21.37.120 of the code;
3. The construction of a new residential structure which replaces a residential structure
that was destroyed or demolished within two years prior to the application for a building
permit for the new residential structure, provided that the number of residential units is not
increased from the number of residential units of the previously destroyed or demolished
residential structure;
4. Any residential unit which is accessory as defined in Section 21.04.020 of this code;
5. Accessory dwelling units not constructed to fulfill inclusionary housing requirements
and developed in accordance with Section 21.10.030 ofthis code;
6. Any project or portion of a project which is a commercial living unit as defined in
Section 21.04.093 of this code; and
7. Those residential units which have obtained affordable housing approvals prior to the
effective date of the ordinance codified in this chapter, as set forth in Section 21.85.160 of
this chapter. (Ord. CS-109 §§ IV-VI, 2010; Ord. NS-535 § 1, 2000)
5. Carlsbad Municipal Code Section 21.85.040 is amended to read as follows:
Jan. 14, 2020 Item #6 Page 4 of 33
21.85.040 Affordable housing standards.
The affordable housing standards are as follows:
A. All qualifying residential developments pursuant to Section 21.85.030(A) are subject to and
must satisfy the inclusionary housing requirements of this chapter, notwithstanding a
developer's request to process a residential development under other program requirements,
laws or regulations, including but not limited to Chapter 21.86 (Residential Density Bonus) of
this code. If an applicant seeks to construct affordable housing to qualify for a density bonus
in accordance with the provisions of Chapter 21.86 (Residential Density Bonus), those
affordable dwelling units that qualify a residential development for a density bonus shall also
be counted toward satisfying the inclusionary housing requirements of this chapter.
B. Whenever reasonably possible, inclusionary units should be built on the residential
development project site.
C. The required inclusionary units shall be constructed concurrently with market-rate units
unless both the final decision-making authority of the city and developer agree within the
affordable housing agreement to an alternative schedule for development.
D. lnclusionary rental units shall remain restricted and affordable to the designated income
group for fifty-five years. In addition to the income of a targeted group, limitations on assets
may also be used as a factor in determining eligibility for rental or ownership units.
Notwithstanding anything to the contrary in this chapter, no inclusionary unit shall be rented
for an amount which exceeds ninety percent of the actual rent charged for a comparable
market unit in the same development, if any.
E. After the initial sale of the inclusionary ownership units at a price affordable to the target
income level group, inclusionary ownership units shall remain affordable to subsequent
income eligible buyers pursuant to a resale restriction with a term of thirty years or ownership
units may be sold at a market price to other than targeted households provided that the sale
shall result in the recapture by the city or its designee of a financial interest in the units equal
to the amount of subsidy necessary to make the unit affordable to the designated income
group and a proportionate share of any appreciation. Funds recaptured by the city shall be
used in assisting other eligible households with home purchases at affordable prices. To the
extent possible, projects using ownership units to satisfy inclusionary requirements shall be
designed to be compatible with conventional mortgage financing programs including
secondary market requirements.
F. lnclusionary units should be located on sites that are in proximity to or will provide access to
employment opportunities, urban services, or major roads or other transportation and
commuter rail facilities and that are compatible with adjacent land uses.
G. The design of the inclusionary units shall be reasonably consistent or compatible with the
design of the total project development in terms of appearance, materials and finished
quality.
H. lnclusionary projects shall provide a mix of number of bedrooms in the affordable dwelling
units in response to affordable housing demand priorities of the city.
I. No building permit shall be issued, nor any development approval granted for a development
which does not meet the requirements of this chapter. No inclusionary unit shall be rented or
sold except in accordance with this chapter. (Ord. CS-109 §§ VII-IX, 2010; Ord. NS-794 § 4,
2006; Ord. NS-535 § 1, 2000)
Jan. 14, 2020 Item #6 Page 5 of 33
6. Carlsbad Municipal Code Section 21.85.050 is amended to read as follows:
21.85.050 Calculating the required number of inclusionary units.
Subject to adjustments for an inclusionary credit, the required number of lower-income inclusionary
units shall be fifteen percent of the total residential units approved by the final decision-making
authority, including density bonus units. If the inclusionary units are to be provided within an off-site
combined or other project, the required number of lower-income inclusionary units shall be fifteen
percent of the total residential units to be provided both on-site and/or off-site. Subject to the
maximum density allowed per the growth management control point or per specific authorization
granted by the planning commission or city council, fractional units for both market rate and
inclusionary units of 0.5 will be rounded up to a whole unit. If the rounding calculation results in a
total residential unit count which exceeds the maximum allowed, neither the market rate nor the
inclusionary unit count will be increased to the next whole number.
Example 1: Total residential units = fifteen percent inclusionary units plus eighty-five percent market-
rate units. If the final decision-making authority approves one hundred total residential units, then
the inclusionary requirement equals fifteen percent of the "total" or fifteen units (100 x .15 = 15). The
allowable market-rate units would be eighty-five percent of the "total" or eighty-five units.
Example 2: If the inclusionary units are to be provided off-site, the total number of inclusionary units
shall be calculated according to the total number of market-rate units approved by the final decision-
making authority. If one hundred market-rate units are approved, then this total is divided by .85
which provides a total residential unit count (100 + .85 = 117). The fifteen percent requirement is
applied to this "total" (one hundred seventeen units) which equals the inclusionary unit requirement
(117 x .15 = 17.6 units).
7. Carlsbad Municipal Code Chapter 21.86 is amended to read as follows:
Chapter 21.86 Density Bonus
Amended sections are 21.86.010, 21.86.020, 21.86.030, 21.86.040, 21.86.050, 21.86.070, 21.86.075,
21.86.090, 21.86.110, and 21.86.120.
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
special needs groups, including homeless persons, foster youth, disabled veterans, lower income
students 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, homeless persons, foster youth, disabled veterans, lower income
students and senior citizens.
C. It is the purpose of this chapter to implement the goals, objectives, policies and programs of
the housing element of the city's general plan. ·
Jan. 14, 2020 Item #6 Page 6 of 33
D. It is the purpose of this chapter to implement Sections 65915 through 65918 of the California
Government Code.
E. This chapter is not 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. This chapter does not supersede or in any way alter or lessen the effect or application ofthe
California Coastal Act of 1976. Any density bonus, concessions, incentives, waivers or reductions
of development standards, and parking ratios to which the applicant is entitled under this
section shall be permitted in a manner that is consistent with this chapter and Division 20
(commencing with Section 30000) of the Public Resources Code. (Ord. CS-242 § 3, 2014; Ord. NS-
794 § 11, 2006)
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
Jan. 14, 2020 Item #6 Page 7 of 33
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 gross residential
density as specified by the land use element of the general plan in effect at the time of
application submittal or if elected by the applicant, a lesser percentage of density increase,
including but not limited to, no increase in density.
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 condition, 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. "Equivalent size" means that replacement units contain at least the same total number
of bedrooms as the units being replaced.
11. "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.
Jan. 14, 2020 Item #6 Page 8 of 33
12. "Floor area ratio" means the ratio of gross building area of the eligible housing
development, excluding structured parking areas, proposed for the project divided by the
net lot area. For purposes of this paragraph, "gross building area" means the sum of all
finished areas of all floors of a building included within the outside faces of its exterior
walls.
13. "Housing development" means a development project for five or more residential
units, including mixed-use developments, and may also include 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.
14. "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 or architectural
design requirements, approval of mixed use zoning in conjunction with the housing project
if commercial, office, industrial, or other land uses will reduce the cost of the housing
development and if the commercial, office, industrial, or other land uses are compatible
with the housing project and the existing or planned development in the area where the
proposed housing project will be located, or any other regulatory incentive or concession
which would result in identifiable and actual cost reductions to provide for affordable
housing costs or rents for the targeted units.
15. "Income" means any monetary benefits that qualify as income in accordance with the
criteria 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.
16. "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.
17. "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.
Jan. 14, 2020 Item #6 Page 9 of 33
18. "Lower income students" means students who have a household income and asset level
that does not exceed the level for Cal Grant A or Cal Grant B award recipients as set forth in
paragraph (1) of subdivision (k) of Section 69432. 7 of the Education Code.
19. "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.
20. "Maximum allowable residential density" means the maximum density of the density
range allowed by the 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.
21. "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.
22. "Qualifying resident" means a resident as defined in Chapter 21.84 of this title and
Section 51.2 of the California Civil Code.
23. "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.
24. "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.
25. "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. (Ord. CS-242 § 4, 2014; Ord. CS 164 §
12, 2011; Ord. NS-889 § 2, 2008; Ord. NS-794 § 11, 2006)
21.86.030 lnclusionary housing.
All housing development projects are subject to Chapter 21.85 -lnclusionary Housing, including
projects that also qualify for a density bonus under this chapter. The affordable housing requirements
of the two chapters are not cumulative. 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 also be counted toward satisfying the density bonus requirements of
this chapter. For projects that qualify for a density bonus, the inclusionary housing requirement shall
Jan. 14, 2020 Item #6 Page 10 of 33
be based on the total residential units approved for the project, including any density bonus dwelling
units awarded pursuant to this chapter. (Ord. CS-242 § 5, 2014; Ord. NS-794 § 11, 2006)
21.86.040 Density bonus for housing developments.
A. The decision-making body shall grant one density bonus, as specified in subsection B of this
section, and incentives or concessions, as set forth in Section 21.86.050 of this chapter, when an
applicant seeks and agrees to construct a housing development of at least five units, excluding any
units permitted by the density bonus awarded pursuant to this chapter, that will contain 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 Section 21.84.030{A)(7) of this title
and Section 51.3 and 51.12 of the California Civil Code, or mobile home park that limits
residency based on age requirements for housing for older persons pursuant to Section
798. 76 or 799.5 of the California Civil Code;
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;
5. A minimum of ten percent of the total units of a housing development for transitional
foster youth, as defined in Section 66025.9 of the California Education Code, disabled
veterans, as defined in Section 18541, or homeless persons, as defined in the federal
McKinney-Vento Homeless Assistance Act (42 U.S.C. Sec. 11301 et seq.). The units
described in this paragraph shall be subject to a recorded affordability restriction of 55
years and shall be provided at the same affordability level as very low-income units; or
6. Twenty percent of the total units for lower income students in a student housing
development that meets the following requirements:
(i) All units in the student housing development will be used exclusively for
undergraduate, graduate, or professional students enrolled full-time at an institution
of higher education accredited by the Western Association of Schools and Colleges or
the Accrediting Commission for Community and Junior Colleges. In order to be eligible
under this subparagraph, the developer shall, as a condition of receiving a certificate
of occupancy, provide evidence to the city that the developer has entered into an
operating agreement or master lease with one or more institutions of higher
education for the institution or institutions to occupy all units of the student housing
development with students from that institution or institutions. An operating
Jan. 14, 2020 Item #6 Page 11 of 33
agreement or master lease entered into pursuant to this subparagraph is not violated
or breached if, in any subsequent year, there are not sufficient students enrolled in an
institution of higher education to fill all units in the student housing development.
(ii) The applicable twenty percent units will be used for lower income students. For
purposes of this paragraph, "lower income students" means students who have a
household income and asset level that does not exceed the level for Cal Grant A or Cal
Grant B award recipients as set forth in paragraph (1) of subdivision (k) of Section
69432. 7 of the Education Code. The eligibility of a student under this paragraph shall
be verified by an affidavit, award letter, or letter of eligibility provided by the
institution of higher education that the student is enrolled in, as described in
subparagraph (i), or by the California Student Aid Commission that the student
receives or is eligible for financial aid, including an institutional grant or fee waiver,
from the college or university, the California Student Aid Commission, or the federal
government shall be sufficient to satisfy this subparagraph.
(iii) The rent provided in the applicable units of the development for lower income students
shall be calculated at thirty percent of sixty-five percent of the area median income for a
single-room occupancy unit type.
(iv) The development will provide priority for the applicable affordable units for lower
income students experiencing homelessness. A homeless service provider, as defined in
paragraph (3) of subdivision (d) of Section 103577 of the Health and Safety Code, or
institution of higher education that has knowledge of a person's homeless status may verify
a person's status as homeless for purposes of this subparagraph.
(v) For purposes of calculating a density bonus granted pursuant to this paragraph, the
term "unit" as used in this section means one rental bed and its pro rata share of
associated common area facilities. The units described in this paragraph shall be subject to
a recorded affordability restriction of 55 years.
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 entitled shall vary
according to the amount by which the percentage of affordable housing units exceeds the
percentages established in subsection A ofthis section, as follows:
a. For housing developments meeting the criteria of subsection (A)(l) of this
section, the density bonus shall be calculated as follows:
Jan. 14, 2020 Item #6 Page 12 of 33
Table A
Density Bonus for Housing Developments with Units Affordable to Low-Income Households
Percentage of Density Bonus to be Granted
Percentage of Low-Income Units (Additional 1.5% density bonus for each 1%
(Minimum 10% required) 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.
d. For housing developments meeting the criteria of subsection (A)(4) of this
section, the density bonus shall be calculated as follows:
Jan. 14, 2020 Item #6 Page 13 of 33
Table C
Density Bonus for Co.mmon 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
37 32
38 33
39 34
40 35
e. For housing developments meeting the criteria of subsection (A)(5) of this
section, the density bonus shall be twenty percent of the number of the type of units
giving rise to a density bonus under that subsection.
f. For housing developments meeting the criteria of subsection (A)(6) of this
section, the density bonus shall be thirty-five percent of the student housing units.
2. The amount of density bonus to which a housing development is entitled shall not
exceed thirty-five percent.
Jan. 14, 2020 Item #6 Page 14 of 33
3. The applicant may elect to accept a lesser percentage of density bonus than specified
in this subsection.
4. If a housing development includes a combination of target dwelling unit types that
meet two or more of the criteria specified in subsection 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, 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. 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.
Jan. 14, 2020 Item #6 Page 15 of 33
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.
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
Section 21.86.050 of this chapter.
Jan. 14, 2020 Item #6 Page 16 of 33
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 any density, including the base density, the density bonus, or the required
number of target dwelling units, any calculations resulting in fractional units shall be separately
rounded up to the next whole number.
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.
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 location of target dwelling
units. The density bonus housing agreement shall be consistent with Section 21.86.130 of this
chapter.
K. An applicant shall be ineligible for a density bonus or any other incentives or concessions
under this chapter if the housing development is proposed on any property that includes a
parcel or parcels on which rental dwelling units are or, if rental dwelling units have been vacated
or demolished in the five-year period preceding the application, have been subject to a recorded
covenant, ordinance, or law that restricts rents to levels affordable to persons and families of
lower-or very low-income; subject to any other form of rent or price control through the city's
valid exercise of its police power; or occupied by lower-or very low-income households, unless
the proposed housing development replaces those units, and either of the following applies:
1. The proposed housing development, inclusive of the units replaced pursuant to this
subsection, contains affordable units at the percentages set forth in this section.
2. Each unit in the development, exclusive of a manager's unit or units, is affordable to
and occupied by either a lower-or very low-income household.
Jan. 14, 2020 Item #6 Page 17 of 33
3. For the purposes of this subsection, "replaces" shall mean either of the following:
a. If any rental dwelling unit(s) is occupied on the date of application, the
proposed housing development shall provide at least the same number of units of
equivalent size to be made available at affordable rent or affordable housing cost to,
and occupied by, persons and families in the same or lower income category as those
households in occupancy. If the income category of the household in occupancy is not
known, it shall be rebuttably presumed that lower income renter households occupied
these units in the same proportion of lower income renter households to all renter
households within Carlsbad, as determined by the most recently available data from
the United States Department of Housing and Urban Development's Comprehensive
Housing Affordability Strategy database. For unoccupied dwelling units described in
this subsection in a development with occupied units, the proposed housing
development shall provide units of equivalent size to be made available at affordable
rent or affordable housing cost to, and occupied by, persons and families in the same
or lower income category as the last household in occupancy. If the income category
of the last household in occupancy is not known, it shall be rebuttably presumed that
lower income renter households occupied these units in the same proportion of lower
income renter households to all renter households within Carlsbad, as determined by
the most recently available data from the United States Department of Housing and
Urban Development's Comprehensive Housing Affordability Strategy database. All
replacement calculations resulting in fractional units shall be rounded up to the next
whole number. The replacement units shall be subject to the affordability tenure
requirements specified in Section 21.86.100.
b. If all rental dwelling units have been vacated or demolished within the five-year
period preceding the application, the proposed housing development shall provide at
least the same number of units of equivalent size as existed at the highpoint of those
units in the five-year period preceding the application. The replacement units shall be
provided at an affordable rent or affordable housing cost to, and occupied by, persons
and families in the same or lower income category as those persons and families in
occupancy at the highpoint, if known. If the incomes of the persons and families in
occupancy at the highpoint is not known, it shall be rebuttably presumed that low-
income and very low-income renter households occupied these units in the same
proportion of low-income and very low income renter households to all renter
households within Carlsbad, as determined by the most recently available data from
the United States Department of Housing and Urban Development's Comprehensive
Housing Affordability Strategy database. All replacement calculations resulting in
fractional units shall be rounded up to the next whole number. The replacement units
shall be subject to the affordability tenure requirements specified in Section
21.86.100. (Ord. CS-280 § 1, 2015; Ord. CS-242 §§ 6-8, 2014; Ord. NS-794 § 11, 2006)
21.86.050 Incentives and concessions for housing developments.
A. When an applicant requests a density bonus pursuant to Section 21.86.040(A) ofthis chapter,
the decision-making body shall grant incentives or concessions, subject to the following:
Jan. 14, 2020 Item #6 Page 18 of 33
1. An applicant shall submit a proposal for any specific incentives or concessions
requested pursuant to this section.
2. The decision-making body shall grant the incentive(s) or concession(s) requested by
the applicant unless, based upon substantial evidence, any of the following findings are
made in writing:
a. The incentive or concession does not result in identifiable and actual cost
reductions, consistent with Section 21.86.020(A)(14) to provide for affordable housing
costs as defined in Section 21.86.020(A)(l) of this chapter.
b. The incentive or concession would have a specific adverse impact upon public
health and safety or the physical environment, or on any real property that is listed in
the California Register of Historical Resources, and for which there is no feasible
method to satisfactorily mitigate or avoid the specific adverse impact without
rendering the development unaffordable to low-and moderate-income households.
As used in this paragraph, and as defined in paragraph (2) of subdivision (d) of Section
65589.5 of the California Government Code, a "specific, adverse impact" means a
significant, quantifiable, direct and unavoidable impact, based on objective, identified
written public health or safety standards, policies, or conditions as they existed on the
date the application was deemed complete.
c. The incentive or concession would be contrary to state or federal law.
3. The applicant shall receive the following number of incentives or concessions:
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:
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 and actual cost reductions. A reduction/modification to standards or
requirements may include, but is not limited to, a reduction in minimum lot size,
setback requirements, and/or in the ratio of vehicular parking spaces that would
otherwise be required.
Jan. 14, 2020 Item #6 Page 19 of 33
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 and actual
cost reductions.
d. The city council may, but is not required to, provide direct financial incentives,
including the provision of publicly owned land, or the waiver of fees or dedication
requirements.
5. The applicant shall show that the requested incentive(s) or concession(s) will result in
identifiable and actual cost reductions. (Ord. CS-280 § 2, 2015; Ord. CS-242 § 9, 2014; Ord.
NS-794 § 11, 2006)
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. 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
Jan. 14, 2020 Item #6 Page 20 of 33
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. (Ord. CS-242 § 10, 2014; Ord. NS-794 § 11, 2006)
21.86.070 Density bonus and incentives for condominium conversions.
A. When an applicant proposes to convert apartments to condominiums, the decision-making
body shall grant either a density bonus or other incentives of equivalent financial value, as set
forth in Section 21.86.0S0(A) of this chapter, if the applicant agrees to provide the following:
1. A minimum of thirty-three percent of the total units of the proposed condominium
conversion project as restricted and affordable to low-income or moderate-income
households; or
2. A minimum of fifteen percent of the total units of the proposed condominium
conversion project as restricted and affordable to lower-income households.
B. For purposes of this section "density bonus" means an increase in units of twenty-five percent
over the number of apartments, to be provided within the existing structure or structures
proposed for conversion.
C. For purposes of this section, "other incentives of equivalent financial value" shall not be
construed to require the city to provide monetary compensation but may include the waiver or
reduction of requirements that might otherwise apply to the proposed condominium conversion
project.
D. The density bonus dwelling units shall not be included when determining the number of
housing units required to be reserved for income-restricted households.
E. When calculating the density bonus, or the required number of target dwelling units, any
calculations resulting in fractional units shall be separately rounded up to the next whole
number.
F. Nothing in this section shall be construed to require that the city approve a proposal to
convert apartments to condominiums.
G. An applicant/developer proposing to convert apartments to condominiums shall be ineligible
for a density bonus or other incentives under this section if the apartments proposed for
conversion constitute a housing development for which a density bonus or other incentives were
provided under Sections 21.86.040 and 21.86.050 of this chapter.
Jan. 14, 2020 Item #6 Page 21 of 33
H. A density bonus housing agreement shall be made a condition of the discretionary permits
(tentative maps, parcel maps, planned unit developments and condominium permits) for all
condominium conversion proposals that request a density bonus or other incentives. The
relevant terms and conditions of the density bonus housing agreement shall be filed and
recorded as a deed restriction on those individual lots or units of a project development which
are designated for the location of target dwelling units. The density bonus housing agreement
shall be consistent with Section 21.86.130 ofthis chapter.
I. An applicant shall be ineligible for a density bonus, or any other incentives or concessions
under this chapter if the condominium project is proposed on any property that includes a
parcel or parcels on which rental dwelling units are or, if rental dwelling units have been vacated
or demolished in the five-year period preceding the application, have been subject to a recorded
covenant, ordinance, or law that restricts rents to levels affordable to persons and families of
lower or very low income; subject to any other form of rent or price control through the city's
valid exercise of its police power; or occupied by lower-or very low-income households, unless
the proposed condominium project replaces those units, as defined in Section 21.86.040(K)(3) of
this chapter, and either of the following applies:
21.86.075
1. The proposed condominium project, inclusive ofthe units replaced pursuant to Section
21.86.040(K)(3) of this chapter, contains affordable units at the percentages set forth in
subsection A.
2. Each unit in the development, exclusive of a manager's unit or units, is affordable to,
and occupied by, either a lower or very low income household. (Ord. CS-280 § 3, 2015; Ord.
NS-794 § 11, 2006)
Development bonus with commercial development and partnered housing.
A. When an applicant for approval of a commercial development has entered into an agreement for
partnered housing described in subsection C. to contribute affordable housing through a joint
project or two separate projects encompassing affordable housing, the city shall grant to the
commercial developer a development bonus as prescribed in subsection B. The housing shall be
constructed on the site of the commercial development or on a site that includes all of the
following:
1. Within the city;
2. In close proximity to public amenities including schools and employment centers; and
3. Located within one-half mile of a major transit stop, as defined in subdivision (b) of Section
21155 of the California Public Resources Code.
B. The development bonus granted to the commercial developer shall mean incentives, mutually
agreed upon by the developer and the city, that may include, but are not limited to, any of the
following:
Jan. 14, 2020 Item #6 Page 22 of 33
1. Up to a twenty percent increase in maximum allowable intensity in the General Plan;
2. Up to a twenty percent increase in maximum allowable floor area ratio;
3. Up to a twenty percent increase in maximum height requirements;
4. Up to a twenty percent reduction in minimum parking requirements;
5. Use of a limited-use/limited-application elevator for upper floor accessibility; or
6. An exception to the zoning ordinance or other land use regulation.
C. For the purposes of this section, the agreement for partnered housing shall be between the
commercial developer and the housing developer, shall identify how the commercial developer
will contribute affordable housing, and shall be approved by the decision-making body.
D. For the purposes of this section, affordable housing may be contributed by the commercial
developer in one of the following manners:
1. The commercial developer may directly build the units;
2. The commercial developer may donate a portion of the site or property elsewhere to the
affordable housing developer for use as a site for affordable housing; or
3. The commercial developer may make a cash payment to the affordable housing developer
that shall be used towards the costs of constructing the affordable housing project.
E. For the purposes of this section, subsection 21.86.040(K) shall apply.
F. Nothing in this section shall preclude any additional allowances or incentives offered to
developers by the city pursuant to law or regulation.
G. If the developer of the affordable units does not commence with construction of those units in
accordance with timelines ascribed by the agreement described in subsection C, the city may
withhold certificates of occupancy for the commercial development under construction until the
developer has completed construction of the affordable units.
H. In order to qualify for a development bonus under this section, a commercial developer shall
partner with a housing developer that provides at least thirty percent of the total units for low-
income households or at least fifteen percent of the total units for very low-income households.
I. Nothing in this section shall preclude an affordable housing developer from seeking a density
bonus, concessions or incentives, waivers or reductions of development standards, or parking
ratios under this chapter.
Jan. 14, 2020 Item #6 Page 23 of 33
J. A development bonus pursuant to this section shall not include a reduction or waiver of the
requirements within an ordinance that requires the payment of a fee by a commercial developer
for the promotion or provision of affordable housing.
K. The city shall submit to the Department of Housing and Community Development, as part of the
annual report required by California Government Code Section 65400 (Housing Report),
information describing a commercial development bonus approved pursuant to this section,
including the terms of the agreements between the commercial developer and the affordable
housing developer, and the developers and the city, and the number of affordable units
constructed as part of the agreements.
L. For purposes of this section, "partner" shall mean formation of a partnership, limited liability
company, corporation, or other entity recognized by the state in which the commercial
development applicant and the affordable housing developer are each partners, members,
shareholders or other participants, or a contract or agreement between a commercial
development applicant and affordable housing developer for the development of both the
commercial and the affordable housing properties.
M. This section shall remain in effect only until January 1, 2022, and as of that date is repealed.
21.86.080 Housing developments with child day care centers.
A. When an applicant proposes to construct a housing development that conforms to the
requirements of Section 21.86.040(A) of this chapter, and includes a child day care center that
will be located on the premises of, as part of, or adjacent to, the project, the following provisions
shall apply:
1. The decision-making body shall grant either of the following:
a. An additional density bonus that is an amount of square feet of residential
space that is equal to or greater than the amount of square feet in the child day care
center; or
b. An additional incentive or concession that contributes significantly to the
economic feasibility of the construction of the child day care center.
2. The decision-making body shall require, as a condition of approval of the housing
development, that the following occur:
a. The child day care center shall remain in operation for a period of time that is
as long as or longer than the period of time during which the target dwelling units are
required to remain affordable, pursuant to Section 21.86.100 ofthis chapter; and
b. Of the children who attend the child day care center, the children of very low-,
lower-, or moderate-income households shall equal a percentage that is equal to or
Jan. 14, 2020 Item #6 Page 24 of 33
greater than the percentage of dwelling units that are required for very low-, lower-,
or moderate-income households pursuant to Section 21.86.040(A) of this chapter.
3. Notwithstanding any requirement of this section, the decision-making body shall not
be required to provide an additional density bonus, incentive or concession for a child day
care center if it finds, based on substantial evidence, that the community has an adequate
number of child day care centers. (Ord. NS-794 § 11, 2006}
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 all applicable development standards, except those
which may be modified as an incentive or concession, or as otherwise provided for in this
chapter. In addition, all units must conform to the requirements of the applicable building and
housing codes. The design of the target dwelling units shall be reasonably consistent or
compatible with the design of the total project development in terms of appearance, materials
and finished quality.
F. No building permit shall be issued, nor any development approval granted, for a development
which does not meet the requirements of this chapter. No target dwelling unit shall be rented or
sold except in accordance with this chapter.
G. Upon the request of the applicant, the parking ratio (inclusive of handicap and guest parking)
for a housing development that conforms to the requirements of Section 21.86.040(A) of this
chapter shall not exceed the ratios specified in Table E or as noted, below. If the applicant does
not request the parking ratios specified in this section 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.
Jan. 14, 2020 Item #6 Page 25 of 33
1. If a development includes the maximum percentage of low-or very low-income units
provided for in Section 21.86.040(A) and is located within one-half mile of a major transit
stop, as defined in the State Public Resources Code (subdivision (b) of Section 21155), and
there is unobstructed access to the major transit stop from the development, then, upon
the request of the developer, the city shall not impose a vehicular parking ratio, inclusive of
handicapped and guest parking, that exceeds 0.5 spaces per bedroom. For purposes of this
subsection, a development shall have unobstructed access to a major transit stop if a
resident is able to access the major transit stop without encountering natural or
constructed impediments.
2. If a development consists solely of rental units, exclusive of a manager's unit or units,
with an affordable housing cost to lower income families, as provided in State Health and
Safety Code Section 50052.5, then, upon the request of the developer, the city shall not
impose a vehicular parking ratio, inclusive of handicapped and guest parking, that exceeds
the following ratios:
a. If the development is located within one-half mile of a major transit stop, as
defined in State Public Resources Code (subdivision (b) of Section 21155), and there is
unobstructed access to the major transit stop from the development, the ratio shall
not exceed 0.5 spaces per unit.
b. If the development is a for-rent housing development for individuals who are
62 years of age or older that complies with State Civil Code (Sections 51.2 and 51.3),
the ratio shall not exceed 0.5 spaces per unit. The development shall have either
paratransit service or unobstructed access, within one-half mile, to fixed bus route
service that operates at least eight times per day.
c. If the development is a special needs housing development, as defined in State
Health and Safety Code (section 51312), the ratio shall not exceed 0.3 spaces per unit.
The development shall have either paratransit service or unobstructed access, within
one-half mile, to fixed bus route service that operates at least eight times per day.
3. If the total number of parking spaces required for a development is other than a whole
number, the number shall be rounded down to the next whole number.
4. 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.
5. 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.
6. Notwithstanding subsections (G)(l) and (G)(2) of this section, ifthe city or an
independent consultant has conducted an area-wide or citywide parking study in the last
seven years, then the city may impose a higher vehicular parking ratio not to exceed the
ratio described in Table E, based upon substantial evidence found in the parking study, that
includes, but is not limited to, an analysis of parking availability, differing levels of transit
access, walkability access to transit services, the potential for shared parking, the effect of
Jan. 14, 2020 Item #6 Page 26 of 33
parking requirements on the cost of market-rate and subsidized developments, and the
lower rates of car ownership for low-and very low-income individuals, including seniors
and special needs individuals. The city shall pay the costs of any new study. The city shall
make findings, based on a parking study completed in conformity with this paragraph,
supporting the need for the higher parking ratio.
Table E
Parking Ratio for Housing Developments
Dwelling Unit Size On-Site Parking Ratio
0-1 bedrooms 1 space per unit
2-3 bedrooms 2 spaces per unit
4 or more bedrooms 2.5 spaces per unit
(Ord. CS-311 § 1, 2017; Ord. CS-242 § 11, 2014; Ord. NS-794 § 11, 2006)
21.86.100 Affordability tenure.
A. All low-and very low-income rental dwelling units that qualified the housing project for a
density bonus shall remain restricted and affordable to the designated group for a period of at
least 55 years, or a longer period of time if required by the construction or mortgage financing
assistance program, mortgage insurance program, or rental subsidy program. Rents for the
target dwelling unit(s) shall be set at an affordable rent as defined in Section 50053 of the Health
and Safety Code.
B. All very low-, low-and moderate-income for-sale dwelling units that qualified the housing
project for a density bonus shall be subject to the following:
1. The initial occupant(s) of the target dwelling unit(s) shall be persons and families of
very low, low or moderate income, as required, and the units shall be offered at an
affordable housing cost as defined in Section 50052.5 of the Health and Safety Code.
2. Unless in conflict with the requirements of another public funding source or law, the
target dwelling unit(s) shall be subject to an equity sharing agreement that specifies:
a. Upon resale, the seller 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
Jan. 14, 2020 Item #6 Page 27 of 33
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 the housing development through
participation in cost of infrastructure, write-down of land costs, or subsidizing the cost of
construction, the target dwelling unit(s) shall remain affordable to the designated income
group for at least 30 years.
C. For rental projects, the city or its designee shall have a one-time first right of refusal to
purchase any project containing affordable units offered for sale at the end of the minimum
tenure of affordability. The first right of refusal to purchase the rental project shall be submitted
in writing to the housing and neighborhood services director. Within 90 days of its receipt, the
city shall indicate its intent to exercise the first right of refusal for the purpose of providing
affordable housing. (Ord. CS-280 § 4, 2015; Ord. CS-242 § 12, 2014; Ord. CS-164 § 12, 2011; Ord.
NS-794 § 11, 2006)
21.86.110 Application process.
A. The granting of a density bonus, incentive or concession, pursuant to this chapter, shall not be
interpreted, in and of itself, to require a general plan amendment, zone code amendment, local
coastal plan amendment, zone change, other discretionary approval, or the waiver of a city
ordinance or provisions of a city ordinance unrelated to development standards.
B. Preliminary Application. A preliminary application may be submitted prior to the submittal of
any formal development application for a housing project that includes a request for a density
bonus, incentive(s) or concession(s). The preliminary application should include the following
information:
1. A brief description of the proposal including the number of target dwelling units and
density bonus units proposed;
2. The zoning, general plan designations and assessors parcel number(s) of the project
site;
3. A site plan, drawn to scale, which includes: building footprints, driveway and parking
layout, existing contours and proposed grading;
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
Jan. 14, 2020 Item #6 Page 28 of 33
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, incentive(s) or concession(s), pursuant to
this chapter, does not require a discretionary approval. The request shall be processed as part of
the development applications for a housing development, as otherwise required in other
sections of this code (e.g., site development plan, tentative map, parcel map, planned unit
development, conditional use permit, redevelopment permit, etc.).
1. If the project involves a request for direct financial incentives from the city, then any
action by the planning commission on the application shall be advisory only, and the city
council shall have the authority to make the final decision on any discretionary permits
related to the project.
2. The following information shall be included with the development application(s)
required for the project:
a. A legal description of the total site proposed for development of the target
dwelling units including a statement of present ownership and present and proposed
zoning;
b. A letter signed by the present owner stating what specific density bonus,
incentives or concessions, waivers or modifications in development standards 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), evidence that the
request will result in identifiable and actual cost reductions 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, 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;
g. In the case of a condominium conversion request, a report with sufficient
evidence to determine whether replacement dwelling units are required pursuant to
Section 21.86.040(K);
h. In the case of a request for a density bonus on property that contains or did
contain rental dwelling units, a report with sufficient evidence to determine whether
replacement dwelling units are required pursuant to Section 21.86.040(K); and
i. The number of parking spaces proposed and whether applicant is requesting a
parking ratio pursuant to Section 21.86.090(G).
Jan. 14, 2020 Item #6 Page 29 of 33
3. Upon submittal, the planning division will review the application for completeness
within the timelines specified in Government Code Section 65943. If the application is
determined to be complete, the planning division shall so notify the applicant in writing,
along with a determination as to the following:
a. The amount of density bonus, calculated pursuant to Section 21.86.040(8), for
which the applicant is eligible;
b. If the applicant requests a parking ratio pursuant to Section 21.86.090(G)(6),
the parking ratio for which the applicant is eligible; and
c. If the applicant requests incentives or concessions pursuant to Section
21.86.050, or waivers or reductions of development standards pursuant to Section
21.86.060, whether the information provided in the application is adequate for the city
to make a determination as to those incentives, concessions, or waivers or reductions
of development standards.
4. Any determination required by paragraph 3 above shall be based on the development
project at the time the application is deemed complete. The local government shall adjust
the amount of density bonus and parking ratios awarded pursuant to this section based on
any changes to the project during the course of development.
5. The city planner is authorized to modify all administrative procedures, forms,
checklists, and templates as necessary to ensure expeditious processing of a density bonus
application consistent with this chapter.
(Ord. CS-280 § 5, 2015; Ord. CS-242 § 13, 2014; Ord. CS-164 § 11, 2011; Ord. NS-794 § 11,
2006)
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 and actual cost
reductions.
3. In cases where an applicant requests a waiver or reduction of development standards,
pursuant to Section 21.86.060, the requested waiver or reduction of development
standard(s) is necessary to avoid physically precluding the construction of a housing
development at the densities or with the incentives or concessions permitted by this
chapter.
4. The requested incentive(s) or concession(s), and/or waiver(s) or reduction(s) of
development standards, if any, will not result in an adverse impact, as defined in paragraph
Jan. 14, 2020 Item #6 Page 30 of 33
(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 there is no feasible method to satisfactorily mitigate or avoid
the specific adverse impact.
5. In cases where an applicant requests to convert apartment units to condominiums, the
condominium conversion project shall not result in a reduction in the affordable housing
stock for lower-income groups, as of most recent inventory.
6. For development located in the coastal zone, the requested density bonus, and any
requested incentive(s), concession(s), and/or waiver(s) or reduction(s) of development
standards, are consistent with this chapter and Division 20 (commencing with Section
30000} of the Public Resources Code.
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. (Ord. CS-242 §§ 14, 15,
2014; Ord. NS-889 § 3, 2008; Ord. NS-794 § 11, 2006}
21.86.130 Density bonus housing agreement.
A. Applicants/developers, requesting a density bonus, incentives or concessions pursuant to this
chapter, shall demonstrate compliance with this chapter by executing a density bonus housing
agreement prepared by the city housing and neighborhood services director and submitted to
the developer for signature.
B. Density bonus housing agreements for projects involving a request for direct financial
incentives from the city shall be subject to city council approval; otherwise, the agreement shall
be subject to the approval ofthe community and economic development director.
C. Following the approval and the signing by all parties, the completed density bonus housing
agreement, with approved site development plan, shall be recorded against the entire
development, including market-rate lots/units; and the relevant terms and conditions therefrom
filed and recorded as a deed restriction or regulatory agreement on those individual lots or units
of a property which are designated for the location of target dwelling units.
D. The approval and signing by all parties of the density bonus housing agreement shall take
place prior to final map approval, and the agreement shall be recorded concurrent with the final
map recordation or, where a map is not being processed, prior to issuance of building permits
for such lots or units.
E. The density bonus housing agreement shall be binding to all future owners and successors in
interest.
Jan. 14, 2020 Item #6 Page 31 of 33
F. A density bonus housing agreement for a housing development or condominium conversion
project processed pursuant to this chapter shall include, but not be limited to, the following:
1. The number of density bonus dwelling units granted;
2. The number and type (e.g., restricted to lower-or moderate-income households) of
target dwelling units proposed;
3. The unit size(s) (square footage) of target dwelling units and the number of bedrooms
per target dwelling unit;
4. The proposed location of the target dwelling units;
5. Schedule for production of target dwelling units;
6. Incentives or concessions provided by the city;
7. Where applicable, tenure and conditions governing the initial sale of for-sale target
units;
8. Where applicable, tenure and conditions establishing rules and procedures for
qualifying tenants, setting rental rates, filling vacancies, and operating and maintaining
units for rental target dwelling units; and
9. Where applicable, requirements for other documents to be approved by the city, such
as marketing, leasing and management plans; financial assistance/loan documents; resale
agreements; and monitoring and compliance plans. (Ord. CS-164 §§ 12, 14, 2011; Ord. NS-
794 § 11, 2006)
21.86.140 Agreement processing fee.
The city council may establish by resolution, fees to be paid by the applicant to defray the city's cost
of preparing and/or reviewing all density bonus housing agreements. (Ord. NS-794 § 11, 2006)
21.86.150 Severability.
If any provision of this chapter or the application thereof to any person or circumstances is held
invalid, the remainder of the chapter and the application of the provision to other persons not
similarly situated or to other circumstances shall not be affected thereby. (Ord. CS-102 § CXVI, 2010;
Ord. NS-794 § 11, 2006)
EFFECTIVE DATE OF THIS ORDINANCE APPLICABLE TO PROPERTIES OUSTIDE THE COASTAL
ZONE: This ordinance shall be effective thirty days after its adoption; and the City Clerk shall certify
Jan. 14, 2020 Item #6 Page 32 of 33
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.
EFFECTIVE DATE OF THIS ORDINANCE APPLICABLE TO PROPERTIES INSIDE THE COASTAL ZONE:
This ordinance shall be effective thirty days after its adoption or upon Coastal Commission approval of
LCPA 2017-0001, whichever occurs later; 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 17th
day of December 2019, and thereafter
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of
Carlsbad on the 14th day of January 2020, by the following vote, to wit:
AYES: Hall, Blackburn, Bhat-Patel, Schumacher
NAYS: None.
ABSENT: None.
APPROVED AS TO FORM AND LEGALITY:
d£,~~-
CELIA A. BREWER, City Attorney
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