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
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To:
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Project Name:
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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 ___ _
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2) Notice w/ attachments
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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