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HomeMy WebLinkAbout2019-12-17; City Council; ; Update the city's inclusionary housing and density bonus zoning ordinance to reflect changes in state law.CA Review "j2;-<\ � CITY COUNCIL � Staff Report Meeting Date: To: From: Staff Contact: Subject: Project Name: Project No.: Dec. 17, 2019 Mayor and City Council Scott Chadwick, City Manager Melanie Saucier, Associate Planner melanie.saucier@carlsbadca.gov, 760-602-4605 Update the city's inclusionary housing and density bonus zoning ordinance to reflect changes in state law. lnclusionary Housing and Density Bonus Amendments GPA 2019-0002/ZCA 2017-0001/LCPA 2017-0001 (PUB 17Y-0004) Recommended Action That the City Council hold a Public Hearing and (1) introduce an Ordinance approving an amendment to the Zoning Ordinance ZCA 2017-0001; and (2) adopt a Resolution approving a General Plan Amendment GPA 2019-0002 and Local Coastal Program Amendment LCPA 2017- 0001 to amend Title 21 of the Carlsbad Municipal Code {CMC) to update the city's lnclusionary Housing and Density Bonus Zoning Ordinances to reflect changes in state law, as recommended for approval by the Planning Commission and the Housing Commission. Executive Summary This project is a city-initiated General Plan Amendment, Zone Code Amendment and Local Coastal Program Amendment to amend the text of the lnclusionary Housing Zoning Ordinance (CMC Section 21.85) and the Density Bonus Zoning Ordinance (CMC Section 21.86). A General Plan Amendment is required to ensure consistency between the changes to the lnclusionary Housing Zoning Ordinance and Housing Element Program 3.1. The purpose of the proposed amendments is to ensure the city's inclusionary housing regulations are applied equally to rentals and ownership projects and density bonus regulations are consistent with changes to state law. These changes are being brought to the City Council for consideration as only the City Council can adopt changes to the Carlsbad Municipal Code. Discussion The proposed changes are to implement current state law development standards adopted by the state legislature in 2017, 2018 and 2019. The proposed amendments to the Zoning Ordinance are provided in strikethrough/underline format (Exhibit 3) and a summary of the changes to the lnclusionary Housing and Density Bonus Zoning Ordinances are contained in the Planning Commission Staff Report (Exhibit 6). Dec. 17, 2019 Item #18 Page 1 of 99 lnclusionary Housing The lnclusionary Housing Zoning Ordinance amends past revisions to Chapter 21.85 and the General Plan Housing Element Program 3.1 to again apply inclusionary housing requirements equally to rental and ownership projects. California State Legislative Assembly Bill {AB) 1505 was signed into law on Sept. 29, 2017. AB 1505 reinstated the city's right to require that the development of residential rental units include a certain percentage of affordable housing for persons and families of low or moderate income. AB 1505 restored local governments' ability to apply locally adopted inclusionary housing requirements, which generally mandate that private housing developers include affordable units in their projects, to rental housing. In order to reverse previous edits to the lnclusionary Housing Ordinance approved by City Council on Sept. 28, 2010, several sections of the Ordinance text and General Plan Housing Element Program 3.1 are proposed to be revised to reinstate the law as it was prior to Palmer/Sixth St. Properties, L.P. v. City of Los Angeles. AB 1505 revokes the Palmer decision and allows cities to again impose restrictions on rental projects. The amendment changes are primarily needed to clarify that the requirements apply equally to rental and ownership projects. Density Bonus Since the city last updated its Density Bonus Zoning Ordinance in Sept. 2016, the governor has signed into law several California State Legislative Bills related to density bonus law that are summarized in the Planning Commission staff report (Exhibit 6). These new laws require cities to amend their ordinances to ensure local compliance with the state law changes. The amendments are necessary to implement state law and maintain consistency with the requirements established by the new legislative bills. Because the Density Bonus Zoning Ordinance text changes affect properties in the city's Coastal Zone, an amendment to the Local Coastal Program is also required. Recommended revisions to the lnclusionary Housing and Density Bonus Zoning Ordinances will be effective throughout the city including within the coastal zone. General Plan Amendment The lnclusionary Housing Zoning Ordinance and General Plan amendment changes are needed to clarify that the affordable housing requirements apply equally to rental and ownership projects. The changes would not affect key inclusionary housing provisions such as the percentage and affordability of inclusionary units that new development must provide, affordability tenure, and resale restrictions. The proposed amendments to the lnclusionary Housing Zoning Ordinance are consistent with the General Plan Housing Element Program 3.1 as amended. The proposed Density Bonus Zoning Ordinance Amendments are consistent with the General Plan and directly implement General Plan Housing Element Program 3.3, which requires the city to ensure consistency with state density bonus law. Planning Commission Meeting On Oct. 2, 2019, the Planning Commission conducted a Public Hearing and recommended approval {6-0-1 with Chairperson Geidner absent) of the Zoning Ordinance Amendment, Dec. 17, 2019 Item #18 Page 2 of 99 General Plan Amendment and Local Coastal Program Amendment. No public comments were received. See Planning Commission Resolution in Exhibit 5. Housing Commission Meeting On Oct. 10, 2019, the Housing Commission conducted a Public Hearing and recommended approval (4-0) of the Zoning Ordinance Amendment, General Plan Amendment and Local Coastal Program Amendment. No public comments were received. See Housing Commission Resolution in Exhibit 8. Airport Influence Area The proposed amendments affect land within the Airport Influence Area, which covers a large portion of Carlsbad and includes residential properties; however, the amendment is consistent with the adopted McClellan-Palomar Airport Land Use Compatibility Plan in that it does not propose any land use or development standard changes that affect compatibility with the Plan's safety, noise, airspace protection and overflight criteria. The Airport Land Use Commission reviewed the amendment and found it to be consistent with the Airport Land Use Compatibility Plan. See correspondence letters in Exhibit 11. SB 18 Consultation Government Code 65352.3 and 65352.4 require local governments to consult with California Native American tribes identified by the Native American Heritage Commission for the purpose of avoiding, protecting, and/or mitigating impacts to cultural places when creating or amending General Plans, Specific Plans and Community Plans. The city complied with requirements of Senate Bill 18 and the 90-day consultation period. Several tribes responded within the 90-day period that they decline or do not wish to consult. See correspondence letters in Exhibit 11. Fiscal Analysis There is no anticipated fiscal impact from this item. Next Steps The City Council's next action would be the second reading ofthe Ordinance. Following this action, amendments to Title 21 will become effective outside of the coastal zone immediately and amendments inside the coastal zone will become effective when 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 Amendments. 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. Dec. 17, 2019 Item #18 Page 3 of 99 Public Notification Information regarding public notifications of this item such as mailings, Public Hearing notices posted in the newspaper and on the city website are available in the Office of the City Clerk. Exhibits 1. City Council Ordinance 2. City Council Resolution 3. Proposed Text Changes in the Zone Code shown in strikeout-underline format 4. Proposed text changes to the General Plan shown in strikeout/underline format 5. Planning Commission Resolution 6. Planning Commission Staff Report dated Oct. 2, 2019 7. Planning Commission Minutes dated Oct. 2, 2019 8. Housing Commission Resolution 9. Housing Commission Staff Report dated Oct. 10, 2019 10. Housing Commission Minut.es dated Oct. 10, 2019 11. Correspondence Dec. 17, 2019 Item #18 Page 4 of 99 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 of the 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 Dec. 17, 2019 Item #18 Page 5 of 99 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 Dec. 17, 2019 Item #18 Page 6 of 99 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 ofthe 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 of this 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: Dec. 17, 2019 Item #18 Page 7 of 99 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) Dec. 17, 2019 Item #18 Page 8 of 99 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 ofthe "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 househqlds, 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. Dec. 17, 2019 Item #18 Page 9 of 99 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 Dec. 17, 2019 Item #18 Page 10 of 99 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. Dec. 17, 2019 Item #18 Page 11 of 99 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 ofthe 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. Dec. 17, 2019 Item #18 Page 12 of 99 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 Dec. 17, 2019 Item #18 Page 13 of 99 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 ofthe 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 Dec. 17, 2019 Item #18 Page 14 of 99 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 of this 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: Dec. 17, 2019 Item #18 Page 15 of 99 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: Dec. 17, 2019 Item #18 Page 16 of 99 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 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. Dec. 17, 2019 Item #18 Page 17 of 99 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. Dec. 17, 2019 Item #18 Page 18 of 99 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 ofthis chapter, which shall be recorded on the property at the time ofthe 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. Dec. 17, 2019 Item #18 Page 19 of 99 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 ofthis 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. Dec. 17, 2019 Item #18 Page 20 of 99 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) of this chapter, the decision-making body shall grant incentives or concessions, subject to the following: Dec. 17, 2019 Item #18 Page 21 of 99 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. Dec. 17, 2019 Item #18 Page 22 of 99 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 Dec. 17, 2019 Item #18 Page 23 of 99 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. Dec. 17, 2019 Item #18 Page 24 of 99 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 of this 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 of the 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: Dec. 17, 2019 Item #18 Page 25 of 99 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. Dec. 17, 2019 Item #18 Page 26 of 99 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 of this 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 Dec. 17, 2019 Item #18 Page 27 of 99 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. Dec. 17, 2019 Item #18 Page 28 of 99 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 ofthe 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, if the 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 Dec. 17, 2019 Item #18 Page 29 of 99 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 Dec. 17, 2019 Item #18 Page 30 of 99 the initial market value, then the value at the time ofthe 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 Dec. 17, 2019 Item #18 Page 31 of 99 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). Dec. 17, 2019 Item #18 Page 32 of 99 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 Dec. 17, 2019 Item #18 Page 33 of 99 (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. Dec. 17, 2019 Item #18 Page 34 of 99 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 Dec. 17, 2019 Item #18 Page 35 of 99 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_ day of ___ _, 2019, by the following vote, to wit: AYES: NAYS: ABSENT: APPROVED AS TO FORM AND LEGALITY: CELIA A. BREWER, City Attorney MATT HALL, Mayor BARBARA ENGLESON, City Clerk (SEAL) Dec. 17, 2019 Item #18 Page 36 of 99 RESOLUTION NO. 2019-265 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING A GENERAL PLAN AMENDMENT, A ZONE CODE AMENDMENT AND A LOCAL COASTAL PROGRAM AMENDMENT TO UPDATE THE CITY'S INCLUSIONARY HOUSING AND DENSITY BONUS ZONING ORDINANCES TO REFLECT CHANGES IN STATE LAW. WHEREAS, the city planner, has prepared a proposed amendment to the General Plan, Zone Code and Local Coastal Program pursuant to Chapter 21.52 of the Carlsbad Municipal Code to ensure consistency with state laws related to inclusionary housing and density bonus; and WHEREAS, the City Council of the City of Carlsbad, California has determined that the Planning Commission did, on Oct. 2, 2019, hold a duly noticed Public Hearing as prescribed by law to recommend to the City Council approving an amendment to the lnclusionary Housing and Density Bonus Zoning Ordinances; and WHEREAS, the City Council of the City of Carlsbad, California has determined that the Housing Commission did, on Oct. 10, 2019, hold a duly noticed Public Hearing as prescribed by law recommending to the City Council adoption of the lnclusionary Housing and Density Bonus Zoning Amendments; and WHEREAS, the City Council of the City of Carlsbad, held a duly noticed Public Hearing to consider said General Plan Amendment, 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 General Plan Amendment, Zone Code Amendment and Local Coastal Program Amendment. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1. That the above recitations are true and correct. 2. That the recommendation of the Planning Commission for the approval of General Plan Amendment GPA 2019-0002, Zone Code Amendment ZCA 2017-0001 and Local Coastal Program Amendment LCPA 2017-0001 are adopted and approved, and that the findings and conditions of the Planning Commission contained in Planning Commission Resolution No. 7334 on file with the city clerk and incorporated herein by reference, are the findings and conditions of the City Council. 3. That the recommendation of the Housing Commission for the approval of General Plan Amendment GPA 2019-0002, Zone Code Amendment ZCA 2017-0001 and Local Coastal Program Amendment LCPA 2017-0001 are adopted and approved, and that the findings and conditions of the Housing Commission contained in Housing Commission Resolution No. Dec. 17, 2019 Item #18 Page 37 of 99 2019-002 on file with the city clerk and incorporated herein by reference, are the findings and conditions of the City Council. 4. This action is final the date this Resolution is adopted by the City Council. The provisions of Chapter 1.16 of the Carlsbad Municipal Code, "Time Limits for Judicial Review" shall apply: "NOTICE" The time within which judicial review of this decision must be sought is governed 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 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 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, City of Carlsbad, 1200 Carlsbad Village Drive, Carlsbad, CA 92008. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 17th day of December 2019, by the following vote, to wit: AYES: Hall, Blackburn, Bhat-Patel, Schumacher. NAYS: None. ABSENT: None. ~lecJer UmEi? IJ. :i:~ty Clerk 1/ <pvkj C;-!5" (SEAL) llt~J< Dec. 17, 2019 Item #18 Page 38 of 99 INCLUSIONARY HOUSING AND DENSITY BONUS AMENDMENT ZCA 2017-0001/LCPA 2017-0001 (PUB 2017-0004) PROPOSED TEXT CHANGES TO THE ZONING ORDINANCE (TITLE 21) SHOWN IN STRIKETHROUGH/UNDERLINE FORMAT EXHIBIT 3 AMENDMENTS TO CHAPTER 21.85 INCLUSIONARY HOUSING 21.85.010 Purpose and intent. Chapter 21.85 INCLUSIONARY HOUSING 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 ownership and qualifying rental unitsresidential 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 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) 21.85.030 Inclusionary 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 residential market Dec. 17, 2019 Item #18 Page 39 of 99 rate dwelling enits reselting from new construction of ovmership enits, i:ncleding the conversion of apartments to condominiums~ and to nev,r construction of rental units 1+¥here the de>,•eloper receives direct financial assistance, offsets, or any incentive of the type specified in density bonus law pmsuant to the provisions of Chapter 21 .86 of this code, and the developer agrees by contract to limit rents for belov1 market rate rental units. Any de11eloper not receiving direct financial assistance, offsets, or other incentives may voluntarily agree to provide inclusionary rental enits. 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 21.3 7 .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 ofresidential 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 of this 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; 7. Any rental unit where the developer does not obtain direct financ~al assistance, offset, or any other incentive or concession of the type specified in density bonus law, althoegh a mandatory density bonus may have been applied pursuant to the provisions of Chapter 21.86 of this code; and &1. 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) 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 Dec. 17, 2019 Item #18 Page 40 of 99 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 -are---itt addition to, and do not count toward satisfying, the inclusionary housing requirements of this chapter. B. Whenever reasonably possible, inclusionary units should be built on the residential development project site. C. The required inclusionary units shall be 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. Inclusionary 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. Inclusionary units should be located on sites that are in proximity to or will provide access to employment opportunities, urban services, or major roads or other transportation and commuter rail facilities and that 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. Inclusionary projects shall provide a mix of number of bedrooms in the affordable dwelling units in response to affordable housing demand priorities of the city. 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) 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 Dec. 17, 2019 Item #18 Page 41 of 99 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 (I 00 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 (I 00 + .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). AMENDMENTS TO CHAPTER 21.86 RESIDENTIAL DENSITY BONUS AND INCENTIVES OR CONCESSIONS Chapter 21.86 RESIDENTIAL DENSITY BONUS AND INCENTIVES OF CONCESSIONS Sections: 21.86.010 Purpose and intent. 21.86.020 Definitions. 21.86.030 lnclusionary housing. 21.86.040 Density bonus for housing developments. 21.86.050 Incentives and concessions for housing developments. 21.86.060 Waiver Qr reduction of development standards. 21.86.070 Density bonus and incentives for condominium conversions. 21.86.075 Development bonus with commercial development and partnered housing. 21.86.080 Housing developments with child day care centers. 21.86.090 Density bonus housing standards. 21.86.100 Affordability tenure. 21.86.11 0 Application process. 21.86.120 Findings for approval. 21.86.130 Density bonus housing agreement. 21.86.140 Agreement processing fee. 21.86.150 Severability. 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 Dec. 17, 2019 Item #18 Page 42 of 99 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.,_ --aad-policies and programs of the housing element of the city's general plan. D. It is the purpose of this chapter to implement Sections 65915 through 65918 of the California Government Code. E . .INothiAg in 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 . .INothing in this chapter does notshall be coflstrued to supersede or in any way alter or lessen the effect or application of the 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. Dec. 17, 2019 Item #18 Page 43 of 99 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 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. 1 1.:._"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. Dec. 17, 2019 Item #18 Page 44 of 99 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 includ~mg 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 6591 S(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_,_ financially sufficient, and actual cost reductions to provide for affordable housing costs or rents for the targeted units. enable the provision of ho using affordable to the designated income group or qualified (senior) resident. 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. 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. 2_0. "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 Dec. 17, 2019 Item #18 Page 45 of 99 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 ofthis 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 Inclusionary housing. All housing development projects are subject to Chapter 21.85 -Inclusionary Housing, including projects that also qualify for a density bonus under this chapter. required to provide affordable housing units in accordance ·Nith Chapter 21.85 (Inclusionary Housing) of this title. The affordable housing requirements of the two chapters are not cumulative. If an applicant seeks to co°:struct 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 Chapte_r 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 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 ef.a housing development of at least five units, excluding any units permitted by the density bonus awarded pursuant to this chapter, that will contain 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; Dec. 17, 2019 Item #18 Page 46 of 99 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; eF 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 ofreceiving 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 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, iricluding 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 thiiiy 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 tenn "unit" as used iI1 this section means one rental bed and its pro rata share of associated common Dec. 17, 2019 Item #18 Page 47 of 99 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 of this 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: Table A Density Bonus for Housing Developments with Units Affordable to Low-Income Households Percentage of Low-Income Units Percentage of Density Bonus to be Granted (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 Percenta2:e ofVerv Low-Income Units Percenta2:e 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. Dec. 17, 2019 Item #18 Page 48 of 99 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 Percenta2:e of Moderate-Income Units Percenta2:e of Density Bonus to be Granted 10 5 11 6 12 7 13 8 14 9 15 10 16 11 17 12 18 I 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)(S) 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 thi11y-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. Dec. 17, 2019 Item #18 Page 49 of 99 3. The applicant may elect to accept a lesser percentage of density bonus than specified in this subsection B of this section. 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: TableD 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. 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. Dec. 17, 2019 Item #18 Page 50 of 99 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 65 5 83 .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 al I 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. 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 numbertlfli-t. 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. Dec. 17, 2019 Item #18 Page 51 of 99 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 21.86.13 0 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. 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 & type, or both, to be made available at affordable rent or affordable housing cost to, and occupied by, persons and families in the same or lower income category as those households in occupancy. 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 detennined 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. feF unooc1:1pied dwelling l.lliits in a de•,relopment with occupied 1:1nits, the proposed ho1:1siAg development shall provide 1:1nits of equivalent size or type, or both, to be made aYailable Dec. 17, 2019 Item #18 Page 52 of 99 at affordable refit or affordable housing cost to, and occupied by, persoi1s and families in the same or lo1Ner income category in the same proportion of affordability as the · occupied units. The replacement units shall be subject to the affordability tenure requirements specified in Section 21.86. l 00. 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 or type, or both, as existed at the highpoint of those units (in the five-year period preceding the application1. 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 ve1y 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 detennined 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. If the incomes of the persons and families in occupancy at the h.ighpoint is not knovm, then one half of the required units shall be made available at affordable rent or affordable housing cost to, and occupied by, very low income persons and families and one half of the required units shall be made available for refit at affordable housing costs to, and occupied by, 10\N income persons and families. 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) of this chapter, the decision-making body shall grant incentives or concessions, subject to the following: 1. An applicant shall submit a proposal for any specific incentives or concessions requested pursuant to this section. 2. The decision-making body shall grant the incentive(s) or concession(s) requested by the applicant unless, based upon substantial evidence, any of the following findings are made in writing: a. The incentive or concession is not required in orderdoes not result in identifiable and actual cost reductions. consistent with Ssection 21 .86.020(A)(1 4) 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, Dec. 17, 2019 Item #18 Page 53 of 99 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 percentl-0% of the total units for lower-income households, at least five percent for very low-income households, or at least ten percent-1-0% for persons and families of moderate income in a common interest development. b. Two incentives or concessions for projects that include at least twenty percentW¼ of the total units for lower-income households, at least ten percent-1-0% for very low-income households, or at least twenty percentW¼ for persons and families of moderate income in a common interest development. c. Three incentives or concessions for projects that include at least !hirty percentW¼ of the total units for lower-income households, at least fifteen percent¼¾ for very low-income households, or at least thirty percentW¼ for persons and families of moderate income in a common interest development. 4. An incentive or concession may include any of the following: a. A reduction in site development standards or a modification of zoning code or architectural design requirements (excluding State Building Standards), that results in identifiable, financially sufficient and actual cost reductions. A reduction/modification to standards or requirements may include, but is not limited to, a reduction in minimum lot size, setback requirements, and/or in the ratio of vehicular parking spaces that would otherwise be required. b. Approval of mixed use zoning in conjunction with the housing development if: (i) commercial, office, industrial or other land uses will reduce the cost of the housing development; and (ii) the commercial, office, industrial, or other land uses are compatible with the housing development and the existing or planned future development in the area where the proposed project will be located. c. Other regulatory incentives or concessions that result in identifiable, financially sufficient and actual cost reductions. d. The city council may, but is not required to, provide direct financial incentives, including the provision of publicly owned land, or the waiver of fees or dedication requirements. 5. The applicant shall show that the requested incentive(s) or concession(s) will result in identifiable; financially sufficient, and actual cost reductions. (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 Dec. 17, 2019 Item #18 Page 54 of 99 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 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 21.86.050(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.. Dec. 17, 2019 Item #18 Page 55 of 99 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 numbertl:l'Ht. 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. 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 of this 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: 1. The proposed condominium project, inclusive of the 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) 21.86.075 Development bonus with commercial development and partnered housing. A. When an applicant for approval of a commercial development has eritered 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 Dec. 17, 2019 Item #18 Page 56 of 99 B. 3. Located within one-half mile of a major transit stop, as defined in subdivision (b) of Section 211 55 of the California Public Resources Code. 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: 1. 2. 3. 4. 5. 6. Up to a twenty percent increase in maximum allowable intensity in the General Plan; Up to a twenty percent increase in maximum allowable floor area ratio; Up to a twenty percent increase in maximum height requirements; Up to a twenty percent reduction in mini.mum parking requirements; Use of a limited-use/limited-application elevator for upper floor accessibility; or 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. 2. 3. The commercial developer may directly build the units; 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 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 ve1y 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. Dec. 17, 2019 Item #18 Page 57 of 99 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 pa1iners, members, shareholders or other participants, or a contract or agreement between a conunercial development applicant and affordable housing developer for the development of both the commercial and the affordable housing prope1iies. 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 of this 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 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) Dec. 17, 2019 Item #18 Page 58 of 99 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 a:n 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 confonn 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. 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 ofrental 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 Dec. 17, 2019 Item #18 Page 59 of 99 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, if the city or an independent consultant has conducted an area-wide or jHrisdictioR fi!ywide 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 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 0-1 bedrooms 2-3 bedrooms 4 or more bedrooms (Ord. CS-311 § 1, 2017; Ord. CS -242 § 11, 2014; Ord. NS-794 § 11, 2006) 21.86.100 Affordability tenure. On-Site Parking Ratio 1 space per unit 2 sp.aces per unit 2.5 spaces per unit 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 Dec. 17, 2019 Item #18 Page 60 of 99 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 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 ofrefusal 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 ofrefusal 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 Dec. 17, 2019 Item #18 Page 61 of 99 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 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 pennits 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 zomng; b. A letter signed by the present owner stating what specific density bonus, incentives, or concessions. waivers or modifications in development standards~ 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 proforma for the proposed praject to justifyevidence 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 Dec. 17, 2019 Item #18 Page 62 of 99 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);documenting the fol!O\ving information for each unit proposed to be converted: I. 11. 111. The monthly income of tenants of each unit throughout the prior year, The monthly rent for each unit throughout the prior year, .rnd Vacancy iRformation for each unit throughout the prior year. h. In the case of a request for a density bonus on prope1ty 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 2 l .86.090(G). 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 2 l .86.040(B), 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 infonnation 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: Dec. 17, 2019 Item #18 Page 63 of 99 1. The project is consistent with the provisions of this chapter. 2. The requested incentive(s) or concession(s) will result in identifiable, financially sufficient, and actual cost reductions. 3. In cases where an applicant requests a waiver or reduction of development standards, pursuant to Section 21.86.060, the requested waiver or reduction of development standard(s) is necessary to 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 (2) of subdivision ( d) of Section 65 5 89 .5 of the California Government Code, to the public health arid 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 foUo,,1,1mg finding is made: a. T1here 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, arid 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 Codcall applicable requirements of the certified Carlsbad Local Coastal Program Land Use Plan(s), \Vith the exception of density. 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 of the 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 Dec. 17, 2019 Item #18 Page 64 of 99 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. 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) Dec. 17, 2019 Item #18 Page 65 of 99 EXHIBIT 4 General Plan Amendment -GPA 2019-0002 Text Changes to General Plan (Strikethrough indicates text to be deleted and underline indicates text to be added.) ~ ~--~=v~, ~r,r , .-:r,r~-T') ,r• -~,.. -1, , .. ,__. •• ~ lV\ .-,~ Amendments to the Housing Element Program 3.l'j' '•"',::,_:.. /,::': .?~,~-;',,.~;~. ,,r .. ,r:..~ General Plan Housing Element Program 3.1 of the "lncfusionary Housing Ordinance" section is revised and amended to read as follows: The city will continue to implement its lnclusionary Housing Ordinance, which requires a minimum of 15 percent of all o•,vnership and qualifying rental residential projects of seven or more units be restricted and affordable to lower income households. This program requires an agreement between all residential developers subject to this inclusionary requirement and the city which stipulates: • The number of required lower income inclusionary units; • The designated sites for the location of the units; • A phasing schedule for production ofthe units; and • The term of affordability for the units. For all ownership and qualifying rentalresidential projects of fewer than seven units, payment of a fee in lieu of inclusionary units is permitted. The fee is based on a detailed study that calculated the difference in cost to produce a market rate rental unit versus a lower-income affordable unit. As of 2016, the in-lieu fee per market-rate dwelling unit was $4,515. The fee amount may be modified by the City Council from time-to-time and is collected at the time of building permit issuance for the market rate units. The city will continue to utilize inclusionary in-lieu fees collected to assist in the development of affordable units. The city will apply lnclusionary Housing Ordinance requirements to rental projects if the project de•,eloper agrees by contract to limit rent as consideration for a "direct financial contribution" or other form of assistance specified in density bonus law; or if the project is at a density that e*ceeds the applicable GMCP density, thus requiring the use of "e*cess dwelling units," as described in Section 10.3 (Resources /\¥ailable). The city will also continue to consider other in-lieu contributions allowed by the lnclusionary Housing Ordinance, such as an irrevocable offer to dedicate developable land. Funding: Departmental budget Lead Agency: Planning Division, Housing and Neighborhood Services Division Objectives and Tinie Frame: • Based on SANDAG's Regional 2050 Growth Forecast and 2010 housing estimates, the city anticipates 3,847 new housing units to be developed between 2010 and 2020, potentially generating 577 inclusionary units. • Adjust the inclusionary housing in-lieu fee as necessary and appropriate to reflect market conditions and ensure fees collected are adequate to facilitate the development of affordable units. 1 Dec. 17, 2019 Item #18 Page 66 of 99 PLANNING COMMISSION RESOLUTION NO.7334 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF CARLSBAD, CALIFORNIA, RECOMMENDING APPROVAL OF A GENERAL PLAN AMENDMENT, A ZONE CODE AMENDMENT AND A LOCAL COASTAL PROGRAM AMENDMENT TO ENSURE CONSISTENCY WITH STATE LAW RELATED TO INCLUSIONARY HOUSING AND DENSITY BONUSES. CASE NAME: AMENDMENTS CASE NO: 0001 (PUB17Y-0004) INCLUSIONARY HOUSING AND DENSITY BONUS GPA 2019-0002/ZCA 2017-0001/LCPA 2017- EXHIBIT 5 WHEREAS, the City Planner, has prepared a proposed amendment to the General Plan, Zone Code and Local Coastal Program pursuant to Chapter 21.52 of the Carlsbad Municipal Code to ensure consistency with state laws related to inclusionary housing and density bonus; and WHEREAS, the City Planner has prepared a Local Coastal Program Amendment, as provided in Public Resources Code Section 30514 and Section 13551 of California Code of Regulations Title 14, Division 5.5; and WHEREAS, the proposed General Plan Amendment, is set forth in Exhibit "1" of this resolution, dated October 2, 2019, and attached here to; and WHEREAS, the proposed Zone Code Amendment and Local Coastal Program Amendment are consistent with state inclusionary housing law and density bonus law and are set forth in the draft City Council Ordinance, Exhibit "2" dated, October 2, 2019, and attached hereto INCLUSIONARV HOUSING AND DENSITY BONUS AMENDMENTS -ZCA 2017-0001/LCPA 2017-0001; and WHEREAS, California Coastal Commission Regulations require a six-week publ_ic review period for any amendment to the Local Coastal Program; and WHEREAS, on June 5, 2019, the Airport Land Use Commission reviewed and found that the proposed General Plan Amendment and Zone Code Amendment are consistent with the adopted McClellan-Palomar Airport Land Use Compatibility Plan; and Dec. 17, 2019 Item #18 Page 67 of 99 WHEREAS, the Planning Commission did on October 2, 2019, hold a duly noticed public hearing as prescribed by law to consider said request for a proposed General Plan Amendment, 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 General Plan Amendment, Zone Code Amendment and Local Coastal Program Amendment. NOW,'THEREFORE, BE IT HEREBY RESOLVED by the Planning Commission of the City of Carlsbad as follows: A) That the foregoing recitations are true and correct. B) At the end .of the state-mandated six-week review period for the Local Coastal Program Amendment, starting on June 7, 2019 and ending on July 19, 2019 staff shall present to the City Council a summary of the comments received. C) That based on the evidence presented at the public hearing, the Commission RECOMMENDS APPROVAL of INCLUSIONARY HOUSING AND DENSITY BONUS AMENDMENTS -GPA 2019-0002/ZCA 2017-0001/LCPA 2017-0001 (PUB17Y-0004), based on the following findings: Findings: 1. GPA 2019-0002, ZCA 2017-0001 and LCPA 2017-0001 reflect sound principles of good Jl~nning in .. ···,. ) that it amends the General Plan to ensure consistency between the changes to the inclusiiinary housing ordinance and Housing Element Program 3.1 and makes necessary changes to the Zone Code to implement state law. 2. ZCA 2017-0001 is consistent with the General Plan in that Land Use and Community Design Element Residential Policy 2-P.6 directs the City to encourage the provision of low and moderate income housing to meet Housing Element objectives. In Carlsbad, affordable (lower income) housing is primarily achieved through inclusionary housing requirements. ZCA 2017- 0001 is consistent with the General Plan Housing Element Program 3.1 as amended. 3. ZCA 2017-0001 is consistent with the General Plan in that the proposed amendments implement the General Plan Housing Element Program 3.3, which requires the city to ensure consistency with state density bonus law. 4. ZCA 2017-0001 ensures consistency with the McClellan-Palomar Airport Land Use Compatibility Plan. PC RESO NO. 7334 -2- Dec. 17, 2019 Item #18 Page 68 of 99 PLANNING COMMISSION EXHIBIT 6 ltemNo. 0 Application complete date: n/a P.C. AGENDA OF: October 2, 2019 Project Planner: Melanie Saucier Project Engineer: n/a SUBJECT: GPA 2019-0002/ZCA 2017-0001/LCPA 2017-0001 (PUB17Y-0004) -INCLUSIONARY HOUSING AND DENSITY BONUS AMENDMENTS -Request for a recommendation to approve a General Plan Amendment, Zone Code Amendment and Local Coastal Program Amendment to update the city's inclusionary housing and density bonus zoning ordinance to reflect changes in state law. The City Planner has determined that the project is a minor zone code amendment that refines or clarifies existing land use standards and would have no significant effect on the environment. Therefore, it 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.l.c.i. I. RECOMMENDATION That the Planning Commission ADOPT Planning Commission Resolution No. 7334 RECOMMENDING APPROVAL of General Plan Amendment GPA 2019-0002, Zone Code Amendment ZCA 2017-0001 .and Local Coastal Program Amendment LCPA 2017-0001, based on the findings contained therein. II. PROJECT DESCRIPTION AND BACKGROUND This project is a city-initiated General Plan Amendment, Zone Code Amendment and Local Coastal Program Amendment to amend the text of the inclusionary housing zoning ordinance (Carlsbad Municipal Code Chapter 21.85) and the density bonus zoning ordinance (Carlsbad Municipal Code Chapter 21.86). A General Plan Amendment is required to ensure consistency between the changes to the inclusionary housing ordinance and Housing Element Program 3.1. The purpose of the proposed amendments is to ensure the city's inclusionary housing regulations are applied equally to rentals and ownership projects and density bonus regulations are consistent with changes to state law. lnclusionary Housing Background General Plan Housing Element Program 3.1 and the inclusionary housing ordinance in Carlsbad Municipal Code Chapter 21.85 currently limits the city's ability to require affordable housing requirements to all residential rental projects. These limitations were initiated by city staff in order to comply with previous case law and were approved by the previous Housing Commission, Planning Commission and City Council in 2010. The previous amendments stem from a July 2009 Court of Appeal decision in Palmer/Sixth Street Properties, L.P. v. City of Los Angeles1. In this case, the court determined that local inclusionary requirements for rental units are pre-empted by State law regarding rent control unless the developer agrees by contract to limit rent in exchange for a "direct financial contribution" or any other forms of 1 Palmer/Sixth St. Properties, L.P. v. City of Los Angeles, 175 Cal. App. 4th 1396, 1410-11, 96 Cal. Rptr. 3d 875, 886 (2009). Dec. 17, 2019 Item #18 Page 70 of 99 GPA 2019-0002/ZCA 2017-0001/LCPA 2017-0001-INCLUSIONARY HOUSING AND DENSITY BONUS AMENDMENTS Date October 2, 2019 Pa e 2 assistance specified in density bonus law. The California Supreme Court denied review of the decision allowing it to remain valid law. Since this time, the governor signed into law California State Legislative Bill AB 1505 on September 29, 2017. AB 1505 reinstated city's right to require that the development of residential rental units include a certain percentage of affordable housing for persons and families of low or moderate income. This bill restored local governments' ability to apply locally adopted inclusionary housing requirements, which generally mandate that private housing developers include affordable units in their projects to rental housing. In order to reverse previous edits to the inclusionary ordinance approved by City Council on September 28, 2010, several sections of the ordinance text and General Plan Housing Element Program 3.1 are proposed to be revised to reinstate the law as it was prior to Palmer/Sixth St. Properties, L.P. v. City of Los Angeles. AB 1505 revokes the Palmer decision and allows cities to impose restrictions on rental projects again. The amendment changes are primarily needed to clarify that the requirements apply equally to rental and ownership projects. Density Bonus Background Since the city last updated its density bonus ordinance in September 2016, the governor has signed into law several California State Legislative Bills related to density bonus law that are summarized in section Ill below. These bills require cities to amend their ordinances to ensure local compliance with the state law changes. On September 28, 2016, Governor Brown amended the State Density Bonus Law (Government Code Section 65915-65918) through the following bills: • . AB 2501 • AB 2442 • AB 2556 • AB 1934 In addition, on September 29, 2018, Governor Browri amended the State Density Bonus Law (Government Code Section 65915-65918) through the following bills: • AB 2797 • AB 2753 • SB 1227 Because the Zone Code text changes affect properties in the city's Coastal Zone, an amendment to the Local Coastal Program is also required. The Zoning Ordinance implements the city's Local Coastal Program. A Local Coastal Program Amendment (LCPA) is proposed to ensure consistency between the Zone Code changes recommended and the Local Coastal Program. A six-week LCPA public noticing period was conducted and no public comments were received during that period. Recommended revisions to the inclusionary housing and density bonus ordinance will be effective throughout the city including within the coastal zone. For properties outside the Coastal Zone, the ordinance will apply 30 days after the second reading. Inside the Coastal Zone, the ordinance will not Dec. 17, 2019 Item #18 Page 71 of 99 GPA 2019-0002/ZCA 2017-0001/LCPA 2017-0001-INCLUSIONARY HOUSING AND DENSITY BONUS AMENDMENTS Date October 2, 2019 Pa e 3 apply to properties until is it approved by the California Coastal Commission. Following a City Council action of approval, staff will submit the ordinance to the Coastal Commission. Ill. ANALYSIS The amendments are necessary to be consistent with and implement state housing law. As described above, several new housing laws related to inclusionary housing and density bonuses require amendments to the General Plan, Zone Code and Local Coastal Program. The changes to state law and proposed amendment are described below. The proposed amendments to the General Plan are provided in strikethrough/underline format (Attachment 2). The proposed amendments to the Zone Code and Local Coastal Program are provided in strikethrough/underline format (Attachment 3) and are summarized in the tables below. lnclusionary Housing Analysis TABLE A-INCLUSIONARY HOUSING STATE LAW 2018 Effective Date Bill Number and Summary of lnclusionary Housing Bill Sponsor Effective AB 1505 (Bloom) AB 1505 supersedes the Palmer decision to the extent January 1, 2018 that decision conflicts with a local jurisdiction's authority to impose inclusionary housing ordinances. Reaffirms local agencies' authority to apply affordable housing requirements to residential rental projects. Specifies that cities may adopt ordinances that require, as a condition of the development of residential rental units, that the development include a certain percentage of residential rental units affordable to, and occupied by, households at or below moderate-income levels. AB 1505 requires inclusionary housing ordinances to provide alternative means of compliance that may include in-lieu fees, land dedication, off-site development of units, or rehabilitation of existing units. The inclusionary housing ordinance and general plan amendment changes are needed to clarify that the affordable housing requirements apply equally to rental and ownership projects. The changes would not affect key inclusionary housing provisions such as the percentage and affordability of inclusionary units that new development must provide, affordability tenure, and resale restrictions. The proposed amendment to the inclusionary housing ordinance is consistent with the General Plan Housing Element Program 3.1 as amended. Dec. 17, 2019 Item #18 Page 72 of 99 GPA 2019-0002/ZCA 2017-0001/LCPA 2017-0001-INCLUSIONARY HOUSING AND DENSITY BONUS AMENDMENTS Date October 2, 2019 Pa e4 Density Bonus Analysis TABLE 8-DENSITY BONUS STATE LAWS 2017-2019 Effective Date Bill Number and Sponsors Summary of Density Bonus Bills AB 2501 (Bloom and Low) Streamlines density bonus process and further clarifies the items below: • Prohibits cities from requiring developers to prepare additional reports to qualify for a density bonus, while allowing government agencies to require applicants to provide reasonable documentation. • Raises the bar for cities to refuse to grant incentives and concessions requested by an applicant. The law formerly allowed government agencies to reject incentives and concessions which it found were not "required in order to provide for affordable housing costs." Now cities can only deny a requested incentive or concession that "does not result in identifiable and actual cost reductions." Further, it I requires that cities bear the burden of proof for denying a requested incentive or concession. • Clarifies that a developer may elect to receive no density bonus at all, while receiving other benefits of the law. • Allows mixed-use developments to qualify for the Effective density bonus. January Clarifies that a request for a parking reduction does not count 1, 2017 toward the incentives and concessions to which the applicant is entitled. AB 2442 (Holden) Expands the application of the Density Bonus Law to housing developments where at least 10% of the units are made available for transitional foster youth, disabled veterans or homeless persons, and rents are restricted at the very low income level. Those projects are entitled to a 20% density bonus. AB 2556 (Nazarian) Makes changes clarifying the Density Bonus Law requirements for replacement of affordable housing units. It establishes a rebuttable presumption for the income level of the replacement unit when the income level of the actual prior resident is unknown. AB 1934 (Santiago) Provides a development bonus to a commercial developer who partners with affordable housing developers to construct affordable housing either on the commercial site or at an appropriate offsite location. The development bonus may include up to a 20% increase in development intensity, floor area ratio, or height limits, up to a 20% reduction in parking requirements, or an exception to a zoning ordinance Dec. 17, 2019 Item #18 Page 73 of 99 GPA 2019-0002/ZCA 2017-0001/LCPA 2017-0001-INCLUSIONARY HOUSING AND DENSITY BONUS AMENDMENTS Date October 2, 2019 Pa e 5 AB 2797 (Bloom) Effective AB 2753 (Friedman) January 1,2019 SB 1227 (Skinner) or land use requirement, as mutually agreed upon by the developer and the jurisdiction. Requires that any density bonus, concessions, incentives, waivers or reductions of development standards, and parking ratios to which an applicant is entitled under the Density Bonus Law be permitted in a manner that is consistent with that law and the California Coastal Act of 1976. Requires a city to provide the applicant with a determination as to the amount of density bonus and any parking ratios requested by the applicant for which the development is eligible and whether the applicant has provided adequate information to make a determination as to any incentives, concessions, or waivers or reductions of development standards requested by the applicant. Requires cities to grant a 35% density bonus for student housing developments that will include at least 20% of the units for low income college students. The proposed density bonus amendments are consistent with the General Plan and directly implement General Plan Housing Element Program 3.3, which requires the city to ensure consistency with state density bonus law. Airport Influence Area . The proposed amendments affect land within the Airport Influence Area, which covers a large portion of Carlsbad and includes residential properties; however, the amendment is consistent with the adopted McClellan-Palomar Airport Land Use Compatibility Plan in that it does not propose any land use or development standard changes that affect compatibility with the Plan's safety, noise, airspace protection and overflight criteria. The Airport Land Use Commission reviewed the amendment and found it to be consistent with the Airport Land Use Compatibility Plan . SB 18 Consultation Government Code 65352.3 and 65352.4 require local governments to consult with California Native American tribes identified by the Native American Heritage Commission for the purpose of avoiding, protecting, and/or mitigating impacts to cultural places when creating or amending General Plans, Specific Plans and Community Plans. The city complied with requirements of SB 18 and the 90-day consultation period. Several tribes responded within the 90-day period that they decline or do not wish to consult. See correspondence letters in Attachment 4. IV. ENVIRONMENTAL REVIEW 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. Dec. 17, 2019 Item #18 Page 74 of 99 GPA 2019-0002/ZCA 2017-0001/LCPA 2017-0001-INCLUSIONARY HOUSING AND DENSITY BONUS AMENDMENTS Date October 2, 2019 Pa e 6 ATTACHMENTS: 1. Planning Commission Resolution No. 7334 a. Exhibit 1-General Plan Amendment Housing Element Program 3.1 lnclusionary Housing GPA 2019-0002 b. Exhibit 2 -Draft City Council Ordinance adopting lnclusionary Housing and Density Bonus Amendment ZCA 2017-0001/LCPA 2017-0001 2. Proposed text changes to the General Plan shown in strikeout/underline format 3. Proposed text changes to the Zone Code shown in strikeout/underline format 4. Correspondence Dec. 17, 2019 Item #18 Page 75 of 99 Planning Commission Minutes October 2, 2019 Page 2 City Planner Neu introduced Agenda Item 1 and stated Associate Planner Drew would make the staff presentation (on file in the Planning Division). Associate Planner Drew gave the staff presentation. DISCLOSURES: Commissioners Merz, Meenes and Anderson disclosed that they had visited the project site. Chair Luna asked if there were any members of the public who wished to speak on the project. Seeing none, she opened and closed public testimony at 6:30 p.m. Motion by Commissioner Anderson, seconded by Commissioner Meenes, to adopt Resolution No. 7348. Motion carried, 7-0. 2. CT 2018-0008/SDP 2018-0010 (DEV2018-0055) -GRAND JEFFERSON -Request for a recommendation of approval of a Tentative Tract Map and Site Development Plan to construct a four-story mixed-use building with seven air-space condominiums consisting of six residential units and one commercial unit on a 0.21-acre site located at 786 Grand Avenue in the Village Center (VC) District of the Village and Barrio Master Plan and within Local Facilities Management Zone 1. The City Planner has determined that this project belongs to a class of projects that the State Secretary for Resources has found do not have a significant impact on the environment and is therefore categorically exempt from the requirement for the preparation of environmental documents pursuant to section 15332 (In-fill Development Projects) of the State CEQA guidelines. City Planner Neu introduced Agenda Item 2 and stated Senior Planner Goff would make the staff presentation (on file in the Planning Division). DISCLOSURES: Commissioner Stine recused himself from the hearing due to a potential conflict of interest. He stated he is familiar with the architect and the applicant. Commissioners Lafferty, Meenes, Anderson and Luna stated they had all visited the project site. Commissioner Merz stated he drove by the site and spoke to Vic Gouse po hi of Colliers International about the retail element of the project, rent demands, and rent rates for retail space. Commissioner Geidner stated she visited the site, walked around the neighborhood, and talked to several people around the neighborhood. She stated she did research on smart streets, livable streets, retail and car lifts. Assistant City Attorney Kemp stated the substance of the conversations Commissioner Geidner held needed to be disclosed. Commissioner Geidner stated she spoke to the manager in Carlisle's Sales Office about the product and that the project was being considered on the evening of Oct. 2, 2019. She also stated she spoke to a guy taking pictures at a property on Madison where the retail space is all new and currently vacant. She asked what was going into the space and he stated a Sushi Restaurant. Dec. 17, 2019 Item #18 Page 77 of 99 Planning Commission Minutes October 2, 2019 Page 3 Senior Planner Goff gave the staff presentation. PLANNING COMMISSION DISCUSSION: Commissioners Lafferty and Geidner expressed concerns for the standards modification request, lack of retail space on the ground floor on the Jefferson street frontage, and the current ground floor design configuration. Commissioner Anderson stated concern for the lack of retail space on the ground floor on the Jefferson street frontage, and the parking configuration. Commissioner Merz expressed his support for the project and the design. Chair Luna asked if there were any members of the public who wished to speak on the project. She opened public testimony at 7:30 p.m. Gary Nessim stated the project does not fit and feels the applicant should have gone underground with the parking. He stated by going underground with the parking the applicant could add additional units smaller in size. He stated he would like to see a variation in design in the village other than contemporary. Robert Wilkinson stated his concern that the project design is what is "in" today. He stated the design does not reflect the fact that the village is a unique neighborhood. He stated he would like to see street trees repurposed and or reused. Chair Luna asked if there were any additional members of the public who wished to speak on the project. Seeing none, she closed public testimony at 7 :38 p.m. Motion by Commissioner Meenes seconded by Commissioner Merz, to adopt Resolution No. 7347. Motion failed due to a tie vote, 3-3-1 (Commiskioners Anderson, Geidner, and Lafferty no, Commissioner Stine abstained). Due to no action being taken because of the tie vote, the Commission continued the project to the next . regularly scheduled Planning Commission Meeting Oct. 16, 2019. 3. G~A 2019-0002/ZCA 2017-0001/LCPA 2017-0001 (PUB17Y-0004) -INCLUSIONARY HOUSING AND DENSITY BONUS AMENDMENTS -Request for a recommendation to approve a General Plan Amendment, Zone Code Amendment and Local Coastal Program Amendment to update the city's inclusionary housing and density bonus zoning ordinance to reflect changes in state law. The City Planner has determined that the project is a minor zone code amendment that refines or clarifies existing land use standards and would have no significant effect on the environment. Therefore, it 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.l.c.i. City Planner Neu introduced Agenda Item 3 and stated Associate Planner Saucier would make the staff presentation (on file in the Planning Division). Commissioner Geidner excused herself for the remainder of the meeting. Associate Planner Saucier gave the staff presentation. Dec. 17, 2019 Item #18 Page 78 of 99 Planning Commission Minutes October 2, 2019 Page 4 Chair Luna asked if there were any members of the public who wished to speak on the project. Seeing none, She opened and closed public testimony at 8:16 p.m. Motion by Commissioner Meenes seconded by Commissioner Stine, to adopt Resolution No. 7334. Motion carried, 6-0-1 (Commissioner Geidner absent). PLANNING COMMISSION REPORTS COMMENTS: Commissioner Lafferty reported on the Historic Preservation Commission that she serves as an ex-officio member of. CITY PLANNER REPORTS: City Planner Neu stated the minutes format will change to a summary format to match what City Council is doing. CITY ATTORNEY REPORTS: None ADJOURNMENT: Chair Luna closed the public hearing and adjourned the duly noticed meeting at 8:53 p.m . Melissa Flores -Minutes Clerk Dec. 17, 2019 Item #18 Page 79 of 99 Exhibit 8 HOUSING COMMISSION RESOLUTION NO. 2019-002 A RESOLUTION OF THE HOUSING COMMISSION OF THE CITY OF CARLSBAD, CALIFORNIA, RECOMMENDING APPROVAL OF A GENERAL PLAN AMENDMENT, A ZONE CODE AMENDMENT AND A LOCAL COASTAL PROGRAM AMENDMENT TO ENSURE CONSISTENCY WITH STATE LAW RELATED TO INCLUSIONARY HOUSING AND DENSITY BONUSES. CASE NAME: INCLUSIONARY HOUSING AND DENSITY BONUS AMENDMENTS CASE NO: GPA 2019-0002/ZCA 2017-0001/LCPA 2017- 0001 (PUB17Y-0004) 1 WHEREAS, the City Planner, has prepared a proposed amendment to the General Plan, Zone Code and Local Coastal Program pursuant to Chapter 21.52 of the Carlsbad Municipal Code to ensure consistency with state laws related to inclusionary housing and density bonus; and WHEREAS,. the City Planner has prepared a Local Coastal Program Amendment, as provided in Public Resources Code, Section 30514 and Section 13551 of California Code of Regulations Title· 14, Division 5.5; and WHEREAS, the proposed General Plan Amendment, is set forth in Exhibit "1" of this resolution, dated October 2, 2019, and attached hereto as GPA 2019-0002; and WHEREAS, the proposed Zone Code Amendment and Local Coastal Program Amendment are consistent with state inclusionary housing law and density bonus law and are set forth in the draft City Council Ordinance, Exhibit "2" dated, October 2, 2019, and attached hereto as INCLUSIONARY HOUSING AND DENSITY BONUS AMENDMENTS -ZCA 2017-0001/LCPA 2017--0001; and WHEREAS, California Coastal Commission Regulations require a six-week public review period for any amendment to the Local Coastal Program; and WHEREAS, on June 5, 2019, the Airport Land Use Commission reviewed and found that the proposed General Plan Amendment and Zone Code Amendment are consistent with the adopted McClellan-Palomar Airport Land Use Compatibility Plan; and Dec. 17, 2019 Item #18 Page 80 of 99 WHEREAS, the Housing Commission did on October 10, 2019, hold a duly noticed public hearing as prescribed by law to consider said request; 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 General Plan Amendment, Zone Code Amendment and Local Coastal Program Amendment. NOW, THEREFORE, BE IT HEREBY RESOLVED by the Housing Commission of the City of Carlsbad as follows: A) B) C) Findings: That the foregoing recitations are true and correct. At the end of the state-mandated six-week review period for the Local Coastal Program Amendment, starting on June 7, 2019 and ending on July 19, 2019 staff shall present to the City Council a summary of the comments received. That based on the evidence presented at the public hearing, the Housing Commission RECOMMENDS APPROVAL of INCLUSIONARY HOUSING AND DENSITY BONUS AMENDMENTS -GPA 2019-0002/ZCA 2017-0001/LCPA 2017-0001 (PUB17V-0004), based on the following findings: 1. GPA 2019-0002, ZCA 2017-0001 and LCPA 2017-0001 reflect sound principles of good planning in that it amends the General Plan to ensure consistency between the changes to the inclusionary housing ordinance and Housing Element Program 3.1 and makes necessary changes to the Zone Code to implement state law. 2. ZCA 2017-0001 is consistent with the General Plan in that Land Use and Community Design Element Residential Policy 2-P.6 directs the City to encourage the provision of low and moderate income housing to meet Housing Element objectives. In Carlsbad, affordable (lower income) housing is primarily achieved through inclusionary housing requirements. ZCA 2017- 0001 is consistent with the General Plan Housing Element Program 3.1 as amended. 3. ZCA 2017-0001 is consistent with the General Plan in that the proposed amendments implement the General Plan Housing Element Program 3.3, which requires the city to ensure consistency with state density bonus law. 4. ZCA 2017-0001 ensures consistency with the McClellan-Palomar Airport Land Use Compatibility Plan. 5. LCPA 2017-0001 ensures the Carlsbad Local Coastal Program and the Zone Code are consistent. HC RESO NO. 2019-002 -2- Dec. 17, 2019 Item #18 Page 81 of 99 6. LCPA 2017-0001 meets the requirements of, and is in 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 amendment ensures consistency with the Zone Code, inclusionary housing law and state density bonus law and does not conflict with any Coastal Zone regulations, land use designations or policies, with which development must comply. PASSED, APPROVED, AND ADOPTED at a regular meeting of the Housing Commission of the City of Carlsbad, held on October 10, 2019, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: COLE, CORTES-TORRES, EVANS, NGUYEN-CLEARY NONE NONE NONE JOHl'JGUYEN-CLEARY, Acting Chairperson CARLSBAD HOUSING COMMISSION ATTEST: David de Cordova Principal Planner HC RESO NO. 2019-002 -3- Dec. 17, 2019 Item #18 Page 82 of 99 assistance specified in density bonus law. The California Supreme Court denied review of the decision allowing it to remain valid law. Since this time, the governor signed into law California State Legislative Bill AB 1505 on September 29, 2017. AB 1505 reinstated city's right to require that the development of residential rental units include a certain percentage of affordable housing for persons and families of low or moderate income. This bill restored local governments' ability to apply locally adopted inclusionary housing requirements, which generally mandate that private housing developers include affordable units in their projects to rental housing. In order to reverse previous edits to the inclusionary ordinance approved by City Council on September 28, 2010, several sections of the ordinance text and General Plan Housing Element Program 3.1 are proposed to be revised to reinstate the law as it was prior to Palmer/Sixth St. Properties, L.P. v. City of Los Angeles. AB 1505 revokes the Palmer decision and allows cities to impose restrictions on rental projects again. The amendment changes are primarily needed to clarify that the requirements apply equally to rental and ownership projects. Density Bonus Background Since the city last updated its density bonus ordinance in September 2016, the governor has signed into law several California State Legislative Bills related to density bonus law that are summarized in section Ill below. These bills require cities to amend their ordinances to ensure local compliance with the state law changes. On September 28, 2016, Governor Brown amended the State Density Bonus Law (Government Code Section 65915-65918) through the following bills: • AB 2501 • AB 2442 • AB 2556 • AB 1934 In addition, on September 29, 2018, Governor Brown amended the State Density Bonus Law {Government Code Section 65915-65918) through the following bills: • AB 2797 • AB 2753 • SB 1227 Because the Zone Code text changes affect properties in the city's Coastal Zone, an amendment to the Local Coastal Program is also required. The Zoning Ordinance implements the city's Local Coastal Program. A Local Coastal Program Amendment (LCPA) is proposed to ensure consistency between the Zone Code changes recommended and the Local Coastal Program. A six-week LCPA public noticing period was conducted and no public comments were received during that period. Recommended revisions to the inclusionary housing and density bonus ordinance will be effective throughout the city including within the coastal zone. For properties outside the Coastal Zone, the ordinance will apply 30 days after the second reading. Inside the Coastal Zone, the ordinance will not apply to properties until is it approved by the California Coastal Commission. Following a City Council action of approval, staff will submit the ordinance to the Coastal Commission. Dec. 17, 2019 Item #18 Page 84 of 99 Analysis The amendments are necessary to be consistent with and implement state housing law. As described above, several new housing laws related to inclusionary housing and density bonuses require amendments to the General Plan, Zone Code and Local Coastal Program . The changes to state law and proposed amendment are described below. The proposed amendments to the General Plan are provided in strikethrough/underline format (Attachment 2). The proposed amendments to the Zone Code and Local Coastal Program are provided in strikethrough/underline format (Attachment 3) and are summarized in the tables below. lnclusionary Housing Analysis TABLE A-INCLUSIONARY HOUSING STATE LAW 2018 Effective Date Bill Number and Summary of lnclusionary Housing Bill Sponsor Effective AB 1505 (Bloom) AB 1505 supersedes the Palmer decision to the extent January 1, 2018 that decision conflicts with a local jurisdiction's authority to impose inclusionary housing ordinances. Reaffirms local agencies' authority to apply affordable housing requirements to residential rental projects. Specifies that cities may adopt ordinances that require, as a condition of the development of residential rental units, that the development include a certain percentage of residential rental units affordable to, and occupied by, households at or below moderate-income levels. AB 1505 requires inclusionary housing ordinances to provide alternative means of compliance that may include in-lieu fees, land dedication, off-site development of units, or rehabilitation of existing units. The inclusionary housing ordinance and general plan amendment changes are needed to clarify that the affordable housing requirements apply equally to rental and ownership projects. The changes would not affect key inclusionary housing provisions such as the percentage and affordability of inclusionary units that new development must provide, affordability tenure, and resale restrictions. The proposed amendment to the inclusionary housing ordinance is consistent with the General Plan Housing Element Program 3.1 as amended. Density Bonus Analysis TABLE B -DENSITY BONUS STATE LAWS 2017-2019 Effective Date Bill Number and Sponsors Summary of Density Bonus Bills AB 2501 (Bloom and Low) Streamlines density bonus process and further clarifies the · items below: • Prohibits cities from requiring developers to prepare additional reports to qualify for a density bonus, while allowing government agencies to require applicants to provide reasonable documentation. Dec. 17, 2019 Item #18 Page 85 of 99 • Raises the bar for cities to refuse to grant incentives and concessions requested by an applicant. The law formerly allowed government agencies to reject incentives and concessions which it found were not "required in order to provide for affordable housing costs." Now cities can only deny a requested incentive or concession that "does not result in identifiable and actual cost reductions." Further, it requires that cities bear the burden of proof for denying a requested incentive or concession. • Clarifies that a developer may elect to receive no density bonus at all, while receiving other benefits of the law. • Allows mixed-use developments to qualify for the Effective density bonus. January Clarifies that a request for a parking reduction does not count 1, 2017 toward the incentives and concessions to which the applicant is entitled. AB 2442 (Holden) Expands the application of the Density Bonus Law to housing developments where at least 10% of the units are made available for transitional foster youth, disabled veterans or homeless persons, and rents are restricted at the very low income level. Those projects are entitled to a 20% density bonus. AB 2556 (Nazarian) Makes changes clarifying the Density Bonus Law requirements for replacement of affordable housing units. It establishes a rebuttable presumption for the income level of the replacement unit when the income level of the actual prior resident is unknown. AB 1934 (Santiago) Provides a development bonus to a commercial developer who partners with affordable housing developers to construct affordable housing either on the commercial site or at an appropriate offsite location. The development bonus may include up to a 20% increase in development intensity, floor area ratio, or height limits, up to a 20% reduction in parking requirements, or an exception to a zoning ordinance or land use requirement, as mutually agreed upon by the developer and the jurisdiction. AB 2797 (Bloom) Requires that any density bonus, concessions, incentives, waivers or reductions of development standards, and parking ratios to which an applicant is entitled under the Density Bonus Law be permitted in a manner that is consistent with that law and the California Coastal Act of 1976. Effective AB 2753 (Friedman) Requires a city to provide the applicant with a determination January as to the amount of density bonus and any parking ratios 1,2019 requested by the applicant for which the development is eligible and whether the applicant has provided adequate information to make a determination as to any incentives, concessions, or waivers or reductions of development standards requested by the applicant. Dec. 17, 2019 Item #18 Page 86 of 99 SB 1227 (Skinner) Requires cities to grant a 35% density bonus for student housing developments that will include at least 20% of the units for low income college students. The proposed density bonus amendments are consistent with the General Plan and directly implement General Plan Housing Element Program 3.3, which requires the city to ensure consistency with state density bonus law. Airport Influence Area The proposed amendments affect land within the Airport Influence Area, which covers a large portion of Carlsbad and includes residential properties; however, the amendment is consistent with the adopted McClellan-Palomar Airport Land Use Compatibility Plan in that it does not propose any land use or development standard changes that affect compatibility with the Plan's safety, noise, airspace protection and overflight criteria. The Airport Land Use Commission reviewed the amendment and found it to be consistent with the Airport Land Use Compatibility Plan. SB 18 Consultation Government Code 65352.3 and 65352.4 require local governments to consult with California Native American tribes identified by the Native American Heritage Commission for the purpose of avoiding, protecting, and/or mitigating impacts to cultura l places when creating or amending General Plans, Specific Plans and Community Plans. The city complied with requirements of SB 18 and the 90-day consultation period. Several tribes responded within the 90-day period that they decline or do not wish to consult. See correspondence letters in Attachment 4. Environmental Review 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 (CEQAj pursuant to CEQA Guidelines Section 15061(b)(3) and Carlsbad Municipal Code Section 19.04.070 A.1.c.i. Attachments 1. Housing Commission Resolution No. 2019-002 a. Exhibit 1-General Plan Amendment Housing Element Program 3.1 lnclusionary Housing GPA 2019-0002 b. Exhibit 2 -Draft City Council Ord inance adopting lnclusionary Housing and Density Bonus Amendment ZCA 2017-0001/LCPA 2017-0001 2. Proposed text changes to the General Plan shown in strikeout/underline format 3. Proposed text changes to the Zone Code shown in strikeout/underline format 4. Correspondence Dec. 17, 2019 Item #18 Page 87 of 99 October 10, 2019 HOUSING COMMISSION Page2 PUBLIC HEARINGS: 1. INCLUSIONARY HOUSING AND DENSITY BONUS AMENDMENTS - Request for a recommendation of approval of a General Plan Amendment, Zone Code Amendment and Local Coastal Program Amendment to update the city's inclusionary housing and density bonus zoning ordinance to reflect changes in state law. (Staff contact: Melanie Saucier, Associate Planner) Staff Recommendation: Approve. Associate Planner Saucier presented the item and re.v:i~Wed a PowerPoint presentation. _./J[t·· No ::::::,oke :n t:e::n by Com,~~j~~:~::;:!~tM seconded by Commissioner Evans tHg{g~soluti9.J1:Pf the Hotiijro,g Commission of the City of.Carlsbad, Califgmi~:{r~t:6mmends af5pfpyal of a General Platfame.ndment, ,{zfuJe.foode amendmenf~hd a local coastal progiijijf~fu~p~ment ta::ij~~Jire consistency with state law related to inch..i•s:fgpcify\figy_:;,ing arfcf:g~_(lsity bonuses. :~~!~T: <ili~~~ij1:E~'~i~~~,~1i!'#YEN-CLEARY 2. HOUSING-.ELEMEN'f]JPDA'fE::::::::.-. ·-::::::::::,. Nom,~nifloffoUttlPUSi~g]~~fu:rriJJM~h~oo·•:~&.tve on the Housing Element Advisory Cqtforifftee. (Sfaf.f~.o.ntacff($.cott Donn~0tsei'nior Planner) . ·-::<tt.. ·•:\}\\.. ··==:ttt.. ··-:-:-· Staff'R:ij~~mmendatiijJit. AppfcN~t Senior ;:i!A:tj~r:.Ponnell ·:~f.~~ente::=:i~e report and reviewed a PowerPoint :~::~i::~:!!~§11tll ACTION: AYES: NAYS: ABSENT: ·•::;::::::•· On a motion by Commissioner Cortes-Torres and seconded by Commissioner Cole, Commissioner Evans was nominated to serve on the Housing Element Advisory Committee. COLE, CORTES-TORRES, EVANS, NGUYEN-CLEARY NONE NONE Dec. 17, 2019 Item #18 Page 89 of 99 SAN DIEGO COUNTY REGIONAL AIRPORT AUTHORITY June 5, 2019 Ms Melanie Saucier City of Carlsbad 1635 Faraday Avenue Carlsbad, California 92008 EXHIBIT 11 Re: Airport Land Use Commission Consistency Determination -Amendments to Zone Code for Affordable Housing Density Bonus and lnclusionary Housing Regulations, City of Carlsbad Dear Ms Saucier: As the Airport Land Use Commission (ALUC) for San Diego County, the San Diego County Regional Airport Authority acknowledges receipt of an application for a determination of consistency for the project described above. Areas covered by this project lie within the Airport Influence Area (AIA) for the McClellan-Palomar Airport -Airport Land Use Compatibility Plan (ALUCP). ALUC staff has reviewed your application and accompanying materials and has determined that it meets our requirements for completeness. In accordance with ALUC Policies and applicable provisions of the State Aeronautics Act (Cal. Pub. Util. Code §21670-21679.5), ALUC staff has determined that the proposed project is consistent with the ALUCP based upon the facts and findings summarized below: (1) The project proposes amendments to the City of Carlsbad Zone Code in order to align affordable housing density bonus regulations with State law and offer additional local incentives to expand the production of affordable housing units. None of the amendments has a direct bearing upon airport related matters and do not include any physical improvements. (2) The proposed project does not involve any actual development and thus does not impact any noise exposure contours of any ALUCP, but any development permitted under this project would be subject to respective sound attenuation or avigation easement requirements as applicable of the ALUCP. (3) The proposed project does not involve any actual development and thus does not impact any airspace protection surfaces of any ALUCP, but any development permitted under this project would be subject to notification requirements to the Federal Aviation Administration (FAA) and compliance with FAA determinations of no hazard to air navigation prior to construction. PO Box 82776 San Diego, CA 92138-2776 www.san.org/aluc AIRPORT LAND USE COMMISSION Dec. 17, 2019 Item #18 Page 91 of 99 ~··.• ... ·•··'<·. '.,'.,,• t SAN DIEGO w· COUNTY @: REGIONAL !fl · . ~, AIRPORT i,.'.·.:C t AUTHORITY t (4) The proposed project does not involve any actual development and thus does not impact any safety zones of any ALUCP, but any development permitted under this project would be subject to the applicable safety zone density limits of the ALUCP, including counting any residential units permitted as density bonuses as dwelling units for purposes of ALUCP safety compatibility. (5) The proposed project does not involve any actual development and thus does not impact any overflight notification requirements of any ALUCP, but any development permitted under this project would be subject to applicable ALUCP overflight notification requirements. (6) Therefore, the proposed project is compatible with the adopted McClellan-Palomar Airport ALUCP . (7) This determination of consistency is not a "project" as defined by the California Environmental Quality Act (CEQA), Cal. Pub. Res. Code §21065, and is not a "development" as defined by the California Coastal Act, Cal. Pub. Res. Code §30106. This determination will be reported to the ALUC at its public meeting on July 11, 2019. Please contact Ed Gowens at (619) 400-2244 if you have any questions regarding this letter. Yours truly, Ralph Redman Manager, Airport Planning cc: Brendan Reed, SDCRAA Planning & Environmental Affairs Amy Gonzalez, SDCRAA General Counsel AIRPORT LAND USE COMMISSION Dec. 17, 2019 Item #18 Page 92 of 99 From: To: Subject: Date: Attachments: Merri Lopez-Keifer Melanie Saucier: Carmen Mojado DECLINE to Consult Pursuant to SB 18 -Inclusionary Housing and Density Bonus Amendments to GP Wednesday, August 14, 2019 5:49:25 PM Inclusionary Housing Amendments DECLINE to Consult SB18.pdf Dear Ms. Saucier: Attached please find a letter from the San Luis Rey Band of Mission Indians DECLINING to consult pursuant to SB 18 regarding the Inclusionary Housing and Density Bonus Amendments to the City of Carlsbad's General Plan. Respectfully, Merri Lopez-Keifer Chief Legal Counsel San Luis Rey Band of Mission Indians (925) 457-3395 lopezkeifer@gmai I .com The information in this e-mail message is intended for the confidential use of the addressees only. The information is subject to attorney-client privilege and/or may be attorney work product. Recipients should not file copies of this e-mail with publicly accessible records. If you are not an addressee or an authorized agent responsible for delivering this e-mail to a designated addressee, you have received this e-mail in error, and any further rev.iew, dissemination, distribution, copying or forwarding of this e-mail is strictly prohibited. If you received this e-mail in error, please notify us immediately at (925) 457-3395. Thank you. Dec. 17, 2019 Item #18 Page 93 of 99 From: To: Subject: Date: Greetings, Padilla. Lacy (TRBL) Melanie Saucier SB 18 Consultation: Inclusionary Housing and Density Bonus Amendments Monday, July 01, 2019 3:20:37 PM A records check of the Tribal Historic preservation office's cultural registry revealed that this project is not located within the Tribe's Traditional Use Area . Therefore, we defer to the other tribes in the area. This letter shall conclude our consultation efforts. Thank you, Lacy Padilla Archaeologist Agua Caliente Band of Cahuilla Indians 5401 Dinah Shore Drive Palm Springs, CA 92264 D: 760-699-6956 J C: 760-333-5222 The information contained in this message may be privileged and confidential and protected . from disclosure. If the reader of this message is not the intended recipient, or an employee or agent responsible for delivering this message to the intended recipient, you are hereby notified that any dissemination, distribution, or copying of this communication is strictly prohibited. If you have received this communication in error, please notify us immediately by replying to the message and deleting it from your computer Dec. 17, 2019 Item #18 Page 95 of 99 From: To: Subject: Date: Ray and Ernest, Melanie Saucier rteran@viejas-nsn.gov; epinqleton@viejas-nsn.gov Tribal Consultation on Inclusionary Housing and Density Bonus Amendments Thursday, July 11, 2019 9:45:00 AM I received your letter on possibly wanting to set up a time to discuss our lnclusionary Housing and Density Bonus Amendments project. I also left you a voicemail message before the July 4th holiday. We have notified the San Pasqual Band of Mission Indians in our previous noticing and will ensure all CEQA laws will be followed. This project is a city-wide update to its inclusionary housing and density bonus ordinances to align with recent changes in state law. Changes to the density bonus ordinance are mandatory; the amendment to the city's inclusionary housing ordinance is discretionary. Please let me know if you would like to discuss in further detail. I can be reached by phone or email below. Thank you, Melanie (City of Carlsbad Melanie Saucier Associate Planner Community and Economic Development Department Planning Division 1635 Faraday Ave Carlsbad, CA 92008 www.carlsbadca.gov 760-602-4605 I melanie.saucier@carlsbadca.gov Dec. 17, 2019 Item #18 Page 96 of 99 From: To: Subject: Date: Melanie Saucier "rteran@viejas-nsn.gov"; "epinqleton@viejas-nsn.gov" Tribal Consultation on Inclusionary Housing and Density Bonus Amendments Wednesday, July 24, 2019 9:03:00 AM Good Morning Ray and Ernest, I wanted to follow back up with you _both to see if there is any interest in discussing the City of Carlsbad lnclusionary Housing and Density Bonus Amendments project. We are available to consult with you on this item at your convenience. Thank you, Melanie (city of Carlsbad Melanie Saucier Associate Planner Community and Economic Development Department Planning Division 1635 Faraday Ave Carlsbad, CA 92008 www.carlsbadca.gov 760-602-4605 I melanie.saucier@carlsbadca.gov From: Melanie Saucier Sent: Thursday, July 11, 2019 9:46 AM To: rteran@viejas-nsn.gov; epingleton@viejas-nsn.gov Subject: Tribal Consultation on lnclusionary Housing and Density Bonus Amendments Ray and Ernest, I received your letter on possibly wanting to set up a time to discuss our lnclusionary Housing and Density Bonus Amendments project. I also left you a voicemail message before the July 4th holiday. We have notified the Sa n Pasqual Band of Mission Indians in our previous noticing and will ensure all CEQA laws will be followed. This project is a city-wide update to its inclusionary housing and density bonus ordinances to align with recent changes in state law. Changes to the density bonus ordinance are mandatory; the amendment to the city's inclusionary housing ordinance is discretionary. Please let me know if you would like to discuss in further detail. I can be reached by phone or email below. Dec. 17, 2019 Item #18 Page 97 of 99 Thank you, Melanie (City of Carlsbad Melanie Saucier Associate Planner Community and Economic Development Department Planning Division 1635 Faraday Ave Carlsbad, CA 92008 www.carl sbadca.gov 760-602-4605 I melanie.saucier@carlsbadca.gov Dec. 17, 2019 Item #18 Page 98 of 99 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 Chamber, 1200 Carlsbad Village Drive, Carlsbad, California, at 6:00 p.m. on Tuesday, December 17, 2019 to consider amendments to the Zoning Ordinance ZCA 2017-0001/GPA 2019-0002/LCPA 2017-0001 to update the city's lnclusionary Housing and Density Bonus Zoning Ordinances and more particularly described as: AN ORDINANCE APPROVING AN AMENDMENT TO THE ZONING ORDINANCE ZCA 2017- 0001 AND A RESOLUTION APPROVING A GENERAL PLAN AMENDMENT GPA 2019-0002 AND LOCAL COASTAL PROGRAM AMENDMENT LCPA 2017-0001 TO AMEND TITLE 21 OF THE CARLSBAD MUNICIPAL CODE (CMC) TO UPDATE THE CITY'S INCLUSIONARY HOUSING AND DENSITY BONUS ZONING ORDINANCES TO REFLECT CHANGES IN STATE LAW, AS RECOMMENDED FOR APPROVAL BY THE PLANNING COMMISSION AND THE HOUSING COMMISSION. Whereas, on Oct. 2, 2019, the City of Carlsbad Planning Commission voted 6-0-1 with Chairperson Geidner absent to recommend approval ofthe Zoning Ordinance Amendment, General Plan Amendment and Local Coastal Program Amendment. Whereas, on Oct. 10, 2019, the Housing Commission recommended approval (4-0) of the Zoning Ordinance Amendment, General Plan Amendment and Local Coastal Program Amendment. Those persons wishing to speak on this proposal are cordially invited to attend the public hearing. Copies of the staff report will be available on and after December 12, 2019. If you have any questions, please contact Melanie Saucier in the Planning Division at 760-602-4605 or melanie.saucier@carlsbadca.gov. If you challenge the Zoning Ordinance Amendment, General Plan Amendment 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: CASE NAME: PUBLISH: GPA 19-02/ZCA 17-01/LCPA 17-01 (PUB 17Y-0004) INCLUSIONARY HOUSING AND DENSITY BONUS AMENDMENTS December 6, 2019 CITY OF CARLSBAD CITY COUNCIL AFFIDAVIT OF MAILING NOTICE OF PUBLIC HEARING TO: CITY CLERK DATE OF PUBLIC HEARING: __ \?-:\_\'k-'---1-\ \_/\ _________ _ SUBJECT: \V\ CM,\1~i\Qntlyt ~"5\~ Ar&_ Df'K\fr"g ~ ~J LOCATION: )J.00 [i4(\~ V1\~ 0Y{v.e. l (p(\~~~,c--A-vfW>~ DATE NOTICES MAILED TO PROPERTY OWNERS: __ \2--_\_5_)_l_'\ ____ _ NUMBER MAI LED: --------"3_lp=------ I declare under penalty of perjury under the laws of the State of California that I am employed by the City of Carlsbad and the foregoing is true and correct. CITY CLERK'S OFFICE ~ (Signature) (Date) SENT TO FOR PUBLICATION VIA E-MAIL TO: 0 Union Tribune !Sf Coast News PUBLICATION DATE: Union Tribune -------------- Coast News __ V2_-\.;.._lP=-----\\_I\ ________ _ I declare under penalty of perjury under the laws of the State of California that I am employed by the City of Carlsbad in the City Clerk's Office and the foregoing is true and correct. Date: __ \1---_} l..-\-~\ \_q ___ _ Attachments: 1) Mailing Labels 2) Notice w/ attachments AVERY 5160 1 \_.-J I AXELSON & CORN ATTORNEYS AT LAW SUITE 201 160 CHESTERFIELD DRIVE ENCINITAS CA 92007 CA COASTAL COMMISSION SUITE 103 7575 METROPOLITAN DRIVE SAN DIEGO CA 92108 CHANNEL ISLANDS NATL PARK SUPERINTENDENT'S OFFICE 1901 SPINNAKER DRIVE VENTURA CA 93001 COUNTY OF SD SUPERVISOR ROOM 335 1600 PACIFIC SAN DIEGO CA 92101 DEPT OF HOUSING & URBAN DEV REGION IX ENVIRONMENTAL OFFICER SUITE 811 611 WEST SIXTH STREET LOS ANGELES CA 90017 FEDERAL ENERGY REGULATORY COMMISSION SUITE 2300 100 1ST STREET SAN FRANCISCO CA 94105-3084 EDWIN ROMERO, CHAIRPERSON 1095 BARONA ROAD LAKESIDE CA 92040 SD COUNTY PLANNING & LAND USE DEPT SUITE 310 5510 OVERLAND AVENUE SAN DIEGO CA 921231239 US ARMY CORPS OF ENGINEER SUITE 1101 915 WILSHIRE BOULEVARD LOS ANGELES CA 90017 U.S. BUREAU OF RECLAMATION SOUTHERN CALIFORNIA AREA OFFICE (SCAO) SUITE A 27226 VIA INDUSTRIA, TEMECULA CA 92590 I Pat avery com/patents : asy ee ress a e s 1 Bencl olong line to e,pose Pop-up Edge I BUREAU OF INDIAN AFFAIRS 2800 COTTAGE WAY SACRAMENTO CA 95825 CA DEPT OF FISH & WILDLIFE ATTN CHRISTINE BECK 3883 RUFFIN ROAD SAN DIEGO CA 92123 CITY OF ENCINITAS 505 S VULCAN AVENUE ENCINITAS CA 92024 DEPT OF FOOD & AGRI CULTURE AGRICULTURAL RESOURCES ROOM 100 1220 N STREET SACRAMENTO CA 95814 DEPT OF JUSTICE DEPT OF ATTY GEN SUITE 1800 600 WEST BROADWAY SAN DIEGO CA 92101 MARINE RESOURCES REG DR & G ENV SERVICES SPR SUITE J 4665 LAMPSON AVENUE LOS ALAMITOS CA 90720-5139 SAN FRANCISCO BAY CONSERV & DEV COM SUITE 10600 455 GOLDEN GATE AVENUE SAN FRANCISCO CA 94102-7019 SDGE 8315 CENTURY PARK COURT SAN DIEGO CA 92123 US ARMY CORPS OF ENGINEERS REGULATORY DIVISION SUITE 100 5900 LA PLACE COURT CARLSBAD CA 92008 US FISH & WILDLIFE SERVICES 2800 COTTAGE WAY SUITE W-2605 SACRAMENTO CA 95825 Etiquettes d 'adresse Easy Peel' : Repl,ez a la hachure af,n de reveler le rebord Pop-up 1 o o avery.com emp e 1 Use Avery Temple le 51 GO I BUSINESS, TRANS & HSG AGENCY UNIT #350B 915 CAPITOL MALL SACRAMENTO CA 95814-4801 CA DEPT OF TRANSPORTATION DISTRICT 11 DIVISION OF PLANNING/DEVELOPMENT REVIEW 4050 TAYLOR STREET, MS-240 SAN DIEGO CA 92110 COASTAL CONSERVANCY SUITE 1100 1330 BROADWAY OAKLAND CA 94612 DEPT OF FORESTRY ENVCOORD PO BOX 944246 SACRAMENTO CA 94244-2460 FEDERAL AVIATION ADMINISTRATION WESTERN-PACIFIC REGION HEADQUARTERS, AWP-9 P.O. BOX 92007 LOS ANGELES CA 90009-2002 OFF OF PLANNING & RESEARCH OFF OF LOCAL GOV AFFAIRS PO BOX 3044 SACRAMENTO CA 95812-3044 SANDAG EXECUTIVE DIRECTOR SUITE 800 1ST INTERNATIONAL PLAZA 401 B STREET SAN DIEGO CA 92101 STATE LANDS COMMISSION SUITE 1005 100 HOWE AVENUE SACRAMENTO CA 95825-8202 US BUREAU OF LAND MGMT SUITE ROOM W 2800 COTTAGE WAY SACRAMENTO CA 95825 USDA RURAL DEVELOPMENT DEPT 4169 430 G STREET DAVIS CA 95606 Allez a avery.ca/gabarits 1 I Util1sez le Gc1barit Avery 5160 1 09~8/09~9@ 1\.18J\V:J8J\B 81QJlBOWO:J WW L9 X WW 51: Jl:lWJUt op i:!,14i:!IIU!~;I 09 ~8/09 ~9® 1Ja11v lll!M 81Q!lBdWO:J .. 8/9 G X • ~ 8Z!S 18QBI BUILDING INDUSTRY ASSOCIATION WATER RESOURCES CONTROL BOARD PO BOX 100 OF SAN DIEGO 9201 SPECTRUM CENTER BOULEVARD SUITE 110 SACRAMENTO CA 95801 CITY OF OCEANSIDE 300 NORTH COAST HIGHWAY OCEANSIDE CA 92054 CITY OF VISTA 200 CIVIC CENTER DRIVE VISTA CA 92084 STAPl!.ES® SAN DIEGO CA 92123 . CITY OF SAN MARCOS 1 CIVIC CENTER DRIVE SAN MARCOS CA 92069 label size 1" x 2 5/8" compatible with Avery ®5160/8160 ttiquette do format 25 mm x 67 mm compatible avec Avery ®5160/8160 04A GPA 2019-0002/ZCA 2017-0001/LCPA 2017-0001 (PUB17Y-0004) Dec. 17, 2019 Inclusionary Housing and Density Bonus Amendments Project Description 1.Amend the General Plan 2.Amend the Inclusionary Housing Ordinance (CMC 21.85) 3.Amend the Density Bonus Ordinance (CMC 21.86) 4.Amend the Local Coastal Program Inclusionary Housing Ordinance •To ensure city’s regulations are applied equally to rentals and ownership projects •This update does not include additional analysis to modernize the in-lieu fee amount or include an overhaul of the ordinance at this time Inclusionary Housing Background •Intent is to ensure that residential development provide a range of housing opportunities for all economic segments of the population, including households of lower and moderate income •City requires a minimum of 15% of residential development (of 7 or more units) be restricted to and affordable to lower-income households Inclusionary Housing Background •In 2017, the Governor signed AB 1505, which reinstated a city’s right to apply inclusionary requirements to rental housing •This change restores past ability for cities to impose restrictions on rental projects again •This stems from case law in 2009 that determined inclusionary requirements were exempt for rental units Inclusionary Housing Amendment •Presently, inclusionary requirements do not apply equally to rental and ownership projects •Edits are now needed to reverse previous changes approved by City Council in Sept. 2010 •Amendment only affects the requirements for rental projects, so they now apply equally to rental & ownership projects Density Bonus Background •Density bonus allows a developer to increase density above the maximum set under a city’s land use plan when a certain percentage of new homes are reserved for lower income households, homeless, foster youth, disabled veterans, lower income students and seniors. Density Bonus Background •Developers are entitled to receive certain benefits, including reduced parking standards, "incentives or concessions," and waivers of certain development standards. •State mandates cities adopt an ordinance consistent with State law. Density Bonus Background City shall grant a density bonus when applicant agrees to construct a housing development (of 5 or more units) that will contain at least any one of the following: 1.10% to lower-income households; 2.5% to very low-income households; 3.A senior citizen housing development; 4.10% to moderate-income households; 5.10% for transitional foster youth,homeless, or disabled veterans 6.20% for lower income students Density Bonus Amendment •In Jan. 2017, 4 Assembly Bills (AB 2501, AB 2556, AB 2442, AB 1934) went into effect, which require the City update its current regulations •In Jan. 2019, 3 new laws (AB 2797, AB 2753, SB 1227) went into effect, which require further updates to City’s regulations Density Bonus Amendment •Changes included items such as: –Density or height limit increase or parking reduction –Expands special needs groups –Replacement requirements of affordable units –Streamlining & city determination of incentives –Consistency with the CA Coastal Act General Plan Amendment •Inclusionary Housing Amendments require a change to General Plan HE Program 3.1 to clarify that the affordable housing requirements apply equally to rental and ownership projects •Density Bonus Amendments are consistent with the General Plan and directly implement HE Program 3.3 SB 18 Tribal Consultation •A 90-day consultation period with Native American tribes was conducted and no public comments were received during that period. •Several tribes responded during the period that they decline or did not wish to consult. 13 Local Coastal Program Amendment •A Local Coastal Program Amendment (LCPA) is needed to ensure consistency between the Zone Code changes recommended and the Local Coastal Program. •A six-week LCPA public noticing period was conducted and no public comments were received during that period. Recommendation •APPROVE introduction of an Ordinance amending CMC Chapter 21.85 and 21.86. •ADOPT Resolution approving amendments to the General Plan (GPA 19-02), Zoning Ordinance (ZCA 17-01), and the Local Coastal Program (LCPA 17-01) to make the city’s regulation of inclusionary housing and density bonuses consistent with state law. Back-up Slides Income Groups by Household Size 2019 Qualifying Limits on Annual Income by Household Size Income Group Persons per household 2 4 6 8 Very Low $42,800 $53,500 $62,100 $70,650 Low $68,500 $85,600 $99,300 $113,000 Moderate $82,850 $103,550 $120,150 $136,700 Above Moderate > $ 82,850 > $103,550 > $ 120,150 > $ 136,200 Source: "2019 Household Income Limits", U.S. Department of Housing and Urban Development (effective April 24, 2019) Maximum Market Rate Rental Expenses 2019 Qualifying Rent and Utility Expenses by Number of Bedrooms Income Group Number of bedrooms 1 2 3 4 Very Low $1,070 $1,337 $1,552 $1,766 Low $1,712 $2,140 $2,482 $2,825 Moderate $2,071 $2,588 $3,003 $3,417 Above Moderate > $2,071 > $ 2,588 > $ 3,003 > $ 3,417 Source: "2019 Household Income Limits", U.S. Department of Housing and Urban Development (effective April 24, 2019) Qualifying Purchase Price by Income 2019 Qualifying Purchase Price by Number of Bedrooms Income Group Number of bedrooms 1 2 3 4 Very Low $128,400 $160,500 $186,300 $211,950 Low $205,500 $256,800 $297,900 $339,000 Moderate $248,550 $310,650 $360,450 $410,100 Above Moderate > $ 248,550 > $ 310,650 > $ 360,450 > $ 410,100 * 3X multiplier was developed by an ad hoc committee at SANDAG with subsequent approval by the SANDAG Board in 1993. (There is no formula in state law). The rule also assumes 2 persons per bedroom to provide a correspondence back to HUD affordability rules based upon persons per household (as opposed to bedrooms). Map of Affordable Housing Locations •https://ccmaps.carlsbadca.gov/housing/index.html •22 complexes throughout Carlsbad