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HomeMy WebLinkAboutStaff Report 5.A 10/21/2019DATE: TO: FROM: SUBJECT Agenda Item #5.A October 21, 2019 Honorable Mayor and Members of the City Council through City Manager -- Heather Heather Hines, Planning Manager Introduction of an Ordinance Amending Implementing Zoning Ordinance, Ordinance 2300 N.C.S., Section 27.090 (Density Bonus Housing Agreement) RECOMMENDATION It is recommended that the City Council introduce an ordinance amending Implementing Zoning Ordinance, Ordinance 2300 N.C.S., Section 27.090 (Density Bonus Housing Agreement) to modify the approval procedure for entitlements associated with a project seeking a Density Bonus. BACKGROUND The Planning Commission reviewed the proposed Zoning Text Amendment at their regular meeting on September 24, 2019 and unanimously approved Resolution No. 2019-014 (Attachment 2) recommending City Council approval of zoning amendment as presented. There was no public comment on this item provided at the Planning Commission meeting. (Attachment 3) DISCUSSION Zoning text amendments are governed by Chapter 25 of the Implementing Zoning Ordinance and by California Government Code Section 65853. Chapter 25 provides that the Planning Commission may recommend zoning text amendments for approval to the City Council based on Planning Commission findings that the proposed amendments are in conformance with the City's General Plan and consistent with the public necessity, convenience, and general welfare. Subsequently, the City Council may adopt the amendment after a public hearing and if the same findings of general conformity with the General Plan and consistency with the public necessity, convenience, and general welfare can be made. The proposed amendments are proposed in an effort to reduce process impediments from housing production. As currently written a project cannot receive approval of entitlements until the Council approves the Density Bonus Housing Agreement and the agreement is recorded. This in turn causes a second hearing at the Planning Commission for Site Plan and Architectural Review after the Council has approved the Density Bonus Housing Agreement, which costs the applicant and the project, time and resources. The proposed amendments modify the standards under Section 27.090 to allow the associated entitlements to be approved conditioned upon the Council's subsequent approval of the Density Bonus and recordation of the agreement. This modification would reduce the expense and time associated with returning to the Planning Commission for a second hearing. A redline of proposed modifications are provided at Attachment 4. To approve the proposed amendments the City Council must find that they conform to the Petaluma General Plan and are consistent with the public necessity, convenience, and general welfare in accordance with Section 25.050(B) of the Implementing Zoning Ordinance. The proposed zoning ordinance amendments are in general confonnity with the Petaluma General Plan 2025 in that the amendments do not change the general character of current zoning regulations. The proposed amendments modify the review and approval process for projects requesting a Density Bonus. The changes will reduce process impediments to housing projects that have incorporated affordable housing and therefore facilitate production of essential housing consistent with the City's policies to allow flexibility within the City's standards and regulations to encourage a variety of housing types (Policy 2.2) and to review and adjust city residential development standards that are determined to be a constraint on the development of housing (Policy 3.1). The proposed amendments are consistent with the public necessity, convenience, and welfare in that they update and clarify existing regulations, provide greater flexibility to facilitate the production of essential housing for Petaluma residents, implementing the policies of the General Plan. The proposed zoning text amendments are exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3), which states that CEQA applies only to projects which have the potential for causing a significant effect on the environment. The proposed amendment only modifies review and approval process. Therefore, it can be seen with certainty the proposed amendment would not cause a direct or indirect significant effect on the environment. PUBLIC OUTREACH Public notice was published in an eighth page ad in the Argus Courier on October 10, 2019. No specific public comment has been received in response to this public notice as of preparation of this report. FINANCIAL IMPACTS The proposed zoning text amendment would reduce processing time for residential density bonus projects, thereby reducing time and costs for the applicant and facilitating the timely processing of housing projects that include onsite affordable housing. All costs associated with processing entitlement applications are born by the applicant through a cost recovery agreement. ATTACHMENTS Attachment 1 Ordinance Modifying IZO Section 27.090 Attachment 2 Planning Commission Resolution No. 2019-014 Attachment 3 Planning Commission Staff Report, September 24, 2019 Attachment 4 Redline of Proposed Amendments to IZO Section 27.090 9 ATTACHMENT 1 ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PETALUMA AMENDING THE TEXT OF THE IMPLEMENTING ZONING ORDINANCE, ORDINANCE 2300 N.C.S., SECTION 27.090 (DENSITY BONUS HOUSING AGREEMENT) WHEREAS, City of Petaluma Implementing Zoning Ordinance (IZO) §25.010 provides in pertinent part that no amendment that regulates matters listed in Government Code § 65850 shall be made to the IZO unless the Planning Commission and City Council find the amendment to be in conformity with the General Plan; and WHEREAS, recently adopted citywide goals include efforts to create diverse housing opportunities for all Petalumans; and WHEREAS, at their Housing Workshop on July 29, 2019, the City Council provided feedback to consider zoning changes to remove barriers from housing production; and WHEREAS, the proposed zoning text amendment provides greater flexibility in processing and approvals and reduces time for entitlements associated with Density Bonus projects; and WHEREAS, pursuant to IZO §25.050, the Planning Commission held a duly noticed public hearing to consider the zoning text amendment on September 24, 2019, at which time all interested parties had the opportunity to be heard; and WHEREAS, the Planning Commission considered the staff report dated September 24, 2019, including the California Environmental Quality Act (CEQA) determination included therein; and WHEREAS, IZO §25.010 provides for Zoning Text Amendments which in this case has been initiated by the Community Development Director; and WHEREAS, after said public hearing, the Planning Commission adopted its Resolution No. 2019-14, recommending that the City Council adopt the zoning text amendments; and WHEREAS, on October 10, 2019, a public notice of the October 21, 2019 public hearing before the City Council to consider the amendments was published as an eighth page ad in the Argus -Courier; and, WHEREAS, on October 21, 2019, the City Council of the City of Petaluma held a duly noticed public hearing to consider the amendments; and NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF PETALUMA AS FOLLOWS: Section 1: Findings. The City Council of the City of Petaluma hereby finds: 1. The proposed amendments to the Implementing Zoning Ordinance Section 27.090 are in general conformity with the Petaluma General Plan 2025 in that the amendments implement the policies of the Petaluma General Plan, as described in the September 24, 2019 Planning Commission staff report. 2. The proposed amendments are consistent with the public necessity, convenience and welfare in that they update and clarify existing regulations, provide greater flexibility to facilitate the production of essential housing for Petaluma residents, while implementing the policies of the General Plan. 3. The proposed zoning text amendments are exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3), which states that CEQA applies only to projects which have the potential for causing a significant effect on the environment. The proposed amendments only modify review procedures for approval of Density Bonus Housing Agreements. Therefore, it can be seen with certainty the proposed amendment would not cause a direct or indirect significant effect on the environment. Section 2: Section 27.090 (Density Bonus Housing Agreement) of the City of Petaluma Implementing Zoning Ordinance, Ordinance No. 2300 N.C.S. is hereby amended to read as follows: 27.090 — Density Bonus Housing Agreement A. Applicants for a Density Bonus, Incentive or Concession shall enter into a Density Bonus Housing Agreement (Agreement) with the City, approved by the City Council. B. Following execution of the Agreement by all parties, the completed Agreement shall be recorded and the conditions filed and recorded on the parcel to be developed and/or an alternative site for the proposed Housing Development, if the Housing Development is off-site. C. The Agreement shall be processed concurrently with the associated entitlements, but approval of those entitlements may be approved prior to and conditioned upon City Council approval of the Agreement and subsequent recordation. D. The Agreement shall run with land to be developed and/or the alternative site for the proposed Housing Development and be binding on all future owners and successors in interest and shall include at a minimum, the following: 1. The total number of units approved for the Development, including the number of Restricted Affordable Units. 2. A description of the household income group to be accommodated by the Restricted Affordable Units, and the standards for determining the corresponding Affordable Rent or Affordable Sales Price. 3. The proposed location, dwelling unit sizes (square feet), and number of bedrooms of the Restricted Affordable Units. 4. Term of use restrictions for Restricted Affordable Units of at least 30 years for Low and Very Low units. 5. A schedule for completion and occupancy of Restricted Affordable Units. 6. A description of any Concession or Incentive, if any, being provided by the City. Lai 7. A description for remedies of breach of the agreement by either party (the City may identify tenants or qualified purchasers as third party beneficiaries under the Agreement). 8. Other provisions to ensure implementation and compliance with this chapter. E. In the case of for -sale Housing Developments, the Density Bonus Housing Agreement shall provide for the following conditions governing the initial sale and use of Restricted Affordable Units during the applicable use restriction period: 1. Restricted Affordable Units shall, upon initial sale, be sold to eligible Moderate Income Households at an Affordable Sales Price and Housing Cost, or to Qualified Residents (i.e., maintained as Senior citizen housing) as defined by this chapter. 2. Restricted Affordable Unit shall be initially owner -occupied by eligible Moderate Income Households or by Qualified Residents in the case of Senior citizen housing. 3. The initial purchaser of each Restricted Affordable Unit shall execute an instrument or agreement approved by the City restricting the sale of the Restricted Affordable Unit in accordance with this chapter during the applicable use restriction period. Such instrument or agreement shall be recorded against the parcel containing the Restricted Affordable Unit and shall contain such provisions as the City may require ensuring continued compliance with this chapter and the state Density Bonus Law. F. In the case of rental Housing Developments, the Density Bonus Housing Agreement shall provide for the following conditions governing the use of Restricted Affordable Units during the use restriction period: 1. The rules and procedures for qualifying tenants, establish Affordable Rent, filling vacancies, and maintaining Restricted Affordable Units for qualified tenants; 2. Provisions requiring owners to verify tenant incomes and maintain books and records to demonstrate compliance with this chapter. 3. Provisions requiring owners to submit an annual report to the City, which includes the name, address, and income of each person occupying Restricted Affordable Units, and which identifies the bedroom size and monthly rent or cost of each Restricted Affordable Unit. Section 5: Except as amended herein, the City of Petaluma Implementing Zoning Ordinance, Ordinance No. 2300 N.C.S. remains unchanged and in full force and effect. Section 6: Severability. If any section, subsection, sentence, clause, phrase or word of this ordinance is for any reason held to be unconstitutional, unlawful or otherwise invalid by a court of competent jurisdiction or preempted by state legislation, such decision or legislation shall not affect the validity of the remaining portions of this ordinance. The City Council of the City of Petaluma hereby declares that it would have passed and adopted this ordinance and each and all provisions thereof irrespective of the fact that any one or more of said provisions be declared unconstitutional, unlawful or otherwise invalid. Section 7: Effective Date. This ordinance shall become effective thirty (30) days after the date of its adoption by the Petaluma City Council. Section 8: Posting/Publishing of Notice. The City Clerk is hereby directed to publish or post this ordinance or a synopsis for the period and in the manner provided by the City Charter and other applicable law 1-3 & �����UUU�U��U������~��� uv�����"�m"�~u� ��x�u " "~nCITY OF PETALUMA PLANNING COMMISSION RECOMMENDING THE CITY COUNCIL APPROVE A ZONING TEXT AMENDMENT OF THE IMPLEMENTING ZONING ORDINANCE, ORDINANCE 2300 N.C.S.' SECTION 27.090 (DENSITY BONUS HOUSING AGREEMENT) WHEREAS, City ofPetaluma Implementing Zoning Ordinance (ID])§25DlOprovides inpertinent part that noamendment that regulates matters listed inGovernment Code §6585Oshall bemade to the IZO unless the Planning Commission and City Council find the amendment to be in conformity with the General Plan; and WHEREAS, recently adopted citywide goals include efforts tocreate diverse housing opportunities for all Peta|umons; and WHEREAS, ottheir Housing VYodmhnp on July 29, 2019, the City Council provided feedback to consider zoning changes tnremove barriers from housing production; and VVHE@EAS,porsuontto|ZO82585O'theP|onningCommbsionho|dodu|ynoticedpob|icheohng toconsider the zoning text amendment onSeptember 24'20l9'otwhich time all interested parties had the opportunity tobeheard; and WHEREAS, the Planning Commission considered the staff report dated September 24, 2019' including the California Environmental Quality Act (CEQA) determination included therein; and WHEREAS, |ZO8251)lOprovides for Zoning Text Amendments which inthis case has been initiated by the Community Development Director. NOW THEREFORE BE IT RESOLVED by the Planning Commission as follows: The proposed amendments tothe Implementing Zoning Ordinance Section 27.090 are in general conformity with the Petaluma General Plan 2025 in that the amendments implement the policies of the Petaluma General Plan, as described in the September 24, 2019 Planning Commission staff report. 2. The proposed amendments are consistent with the public necessity, convenience and welfare in that they update and clarify existing regulations, provide greater flexibility iofacilitate the production essential housing for Petaluma residents, implementing the policies of the General Plan. 3. The proposed ordinance, attached hereto as Exhibit 1, is hereby referred to the Petaluma City Council for consideration and findings inaccordance with |ZO §25l)lOand 25.050. 4. The proposed zoning text amendments are exempt from the California Environmental Quality Act (CEQA) pursuant to CEQAGuidelines Section l5O6l(b)(3)'which states that CEQAapplies only 10 projects which have the potential for causing a significant effect on the environment. The proposed amendments only modify review procedures for approval of Density Bonus Housing Agreements. Therefore, it can be seen with certainty the proposed amendment would not cause a direct or indirect significant effect on the environment. 2-1 Planning Commission Resolution No. 20/9/4 Page ADOPTED this 24'" day of September, 2019, by the following vote: Commission Member Aye Councilmember X McDonnell Chair Marzo X Vice Chair Alonso X Bauer X Gomez X Potter X Streeter X ATTEST: Heather Hines, Commission Secretary No Absent Abstain Scott Alonso, Chair APPROVED AS TO FORM: Lisa Tennenbaum, Assistant City Attorney Planning Commission Resolution No. 2019-14 2-2 Page 2 Exhibit 1 ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PETALUMA AMENDING THE TEXT OF THE IMPLEMENTING ZONING ORDINANCE, ORDINANCE 2300 N.C.S., SECTION 27.090 (DENSITY BONUS HOUSING AGREEMENT) WHEREAS, City of Petaluma Implementing Zoning Ordinance (IZO) §25.010 provides in pertinent part that no amendment that regulates matters listed in Government Code § 65850 shall be made to the IZO unless the Planning Commission and City Council find the amendment to be in conformity with the General Plan; and WHEREAS, recently adopted citywide goals include efforts to create diverse housing opportunities for all Petalumans; and WHEREAS, at their Housing Workshop on July 29, 2019, the City Council provided feedback to consider zoning changes to remove barriers from housing production; and WHEREAS, the proposed zoning text amendment provides greater flexibility in processing and approvals and reduces time for entitlements associated with Density Bonus projects; and WHEREAS, pursuant to IZO §25.050, the Planning Commission held a duly noticed public hearing to consider the zoning text amendment on September 24, 2019, at which time all interested parties had the opportunity to be heard; and WHEREAS, the Planning Commission considered the staff report dated September 24, 2019, including the California Environmental Quality Act (CEQA) determination included therein; and WHEREAS, IZO §25.010 provides for Zoning Text Amendments which in this case has been initiated by the Community Development Director; and WHEREAS, after said public hearing, the Planning Commission adopted its Resolution No. 2019 - XX, recommending that the City Council adopt the zoning text amendments; and WHEREAS, on XX, 2019, a public notice of the XX, 2019 public hearing before the City Council to consider the amendments was published as an eighth page ad in the Argus -Courier; and, WHEREAS, on XX, 2019, the City Council of the City of Petaluma held a duly noticed public hearing to consider the amendments; and NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF PETALUMA AS FOLLOWS: Section l: Findings. The City Council of the City of Petaluma hereby finds: 5. The proposed amendments to the Implementing Zoning Ordinance Section 27.090 are in general conformity with the Petaluma General Plan 2025 in that the amendments implement the policies of the Petaluma General Plan, as described in the September 24, 2019 Planning Commission staff report. 6. The proposed amendments are consistent with the public necessity, convenience and welfare in 2-3 Planning Commission Resolution No. 2019-14 Page 3 that they update and clarify existing regulations, provide greater flexibility to facilitate the production of essential housing for Petaluma residents, while implementing the policies of the General Plan. 7. The proposed zoning text amendments are exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3), which states that CEQA applies only to projects which have the potential for causing a significant effect on the environment. The proposed amendments only modify review procedures for approval of Density Bonus Housing Agreements. Therefore, it can be seen with certainty the proposed amendment would not cause a direct or indirect significant effect on the environment. Section 2: Section 27.090 (Density Bonus Housing Agreement) of the City of Petaluma Implementing Zoning Ordinance, Ordinance No. 2300 N.C.S. is hereby amended to read as follows: 27.090 — Density Bonus Housing Agreement A. Applicants for a Density Bonus, Incentive or Concession shall enter into a Density Bonus Housing Agreement (Agreement) with the City, approved by the City Council. B. Following execution of the Agreement by all parties, the completed Agreement shall be recorded and the conditions filed and recorded on the parcel to be developed and/or an alternative site for the proposed Housing Development, if the Housing Development is off-site. C. The Agreement shall be processed concurrently with the associated entitlements, but approval of those entitlements may be approved prior to and conditioned upon City Council approval of the Agreement and subsequent recordation. D. The Agreement shall run with land to be developed and/or the alternative site for the proposed Housing Development and be binding on all future owners and successors in interest and shall include at a minimum, the following: 1. The total number of units approved for the Development, including the number of Restricted Affordable Units. 2. A description of the household income group to be accommodated by the Restricted Affordable Units, and the standards for determining the corresponding Affordable Rent or Affordable Sales Price. 3. The proposed location, dwelling unit sizes (square feet), and number of bedrooms of the Restricted Affordable Units. 4. Term of use restrictions for Restricted Affordable Units of at least 30 years for Low and Very Low units. 5. A schedule for completion and occupancy of Restricted Affordable Units. 6. A description of any Concession or Incentive, if any, being provided by the City. 7. A description for remedies of breach of the agreement by either party (the City may identify tenants or qualified purchasers as third party beneficiaries under the Agreement). 8. Other provisions to ensure implementation and compliance with this chapter. E. In the case of for -sale Housing Developments, the Density Bonus Housing Agreement shall provide for the following conditions governing the initial sale and use of Restricted Affordable Units during the applicable use restriction period: 1. Restricted Affordable Units shall, upon initial sale, be sold to eligible Moderate Income Households at an Affordable Sales Price and Housing Cost, or to Qualified Residents (i.e., maintained as Senior citizen housing) as defined by this chapter. 2-4 Planning Commission Resolution No. 2019-14 Page 4 2. estricted Affordable Unit shall be initially owner -occupied by eligible Moderate Income Households or by Qualified Residents in the case of Senior citizen housing. 3. The initial purchaser of each Restricted Affordable Unit shall execute an instrument or agreement approved by the City restricting the sale of the Restricted Affordable Unit in accordance with this chapter during the applicable use restriction period. Such instrument or agreement shall be recorded against the parcel containing the Restricted Affordable Unit and shall contain such provisions as the City may require ensuring continued compliance with this chapter and the state Density Bonus Law. F. In the case of rental Housing Developments, the Density Bonus Housing Agreement shall provide for the following conditions governing the use of Restricted Affordable Units during the use restriction period: 1. The rules and procedures for qualifying tenants, establish Affordable Rent, filling vacancies, and maintaining Restricted Affordable Units for qualified tenants; 2. Provisions requiring owners to verify tenant incomes and maintain books and records to demonstrate compliance with this chapter. 3. Provisions requiring owners to submit an annual report to the City, which includes the name, address, and income of each person occupying Restricted Affordable Units, and which identifies the bedroom size and monthly rent or cost of each Restricted Affordable Unit. Section 5: Except as amended herein, the City of Petaluma Implementing Zoning Ordinance, Ordinance No. 2300 N.C.S. remains unchanged and in full force and effect. Section 6: Severability. If any section, subsection, sentence, clause, phrase or word of this ordinance is for any reason held to be unconstitutional, unlawful or otherwise invalid by a court of competent jurisdiction or preempted by state legislation, such decision or legislation shall not affect the validity of the remaining portions of this ordinance. The City Council of the City of Petaluma hereby declares that it would have passed and adopted this ordinance and each and all provisions thereof irrespective of the fact that any one or more of said provisions be declared unconstitutional, unlawful or otherwise invalid. Section 7: Effective Date. This ordinance shall become effective thirty (30) days after the date of its adoption by the Petaluma City Council. Section 8: Posting/Publishing of Notice. The City Clerk is hereby directed to publish or post this ordinance or a synopsis for the period and in the manner provided by the City Charter and other applicable law 2-5 Planning Commission Resolution No. 2019-14 Page 5 DATE: September 24, 2019 AGENDA ITEM NO. 8B TO: Planning Commission FROM: Heather Hines, Planning Manager SUBJECT: Zoning Text Amendment to the Implementing Zoning Ordinance Section 27.090 (Density Bonus Housing Agreements) RECOMMENDATION It is recommended that the Planning Commission adopt a resolution recommending that the City Council approve a Zoning Text Amendment to the Implementing Zoning Ordinance, Ordinance 2300 N.C.S., Section 27.090 (Density Bonus Housing Agreement) to modify the approval procedure for entitlements associated with a project seeking a Density Bonus (Attachment A). DISCUSSION Zoning text amendments are governed by Chapter 25 of the Implementing Zoning Ordinance and by California Government Code Section 65853. Chapter 25 provides that the Planning Commission may recommend zoning text amendments for approval to the City Council based on Planning Commission findings that the proposed amendments are in conformance with the City's General Plan and consistent with the public necessity, convenience, and general welfare. The proposed amendments are proposed in an effort to reduce process impediments from housing production. As currently written a project cannot receive approval of entitlements until the Council approves the Density Bonus Housing Agreement and the agreement is recorded. This in turn causes a second hearing at the Planning Commission for Site Plan and Architectural Review after the Council has approved the Density Bonus Housing Agreement. The proposed amendments modify the standards under Section 27.090 to allow the associated entitlements to be approved conditioned upon the Council's subsequent approval of the Density Bonus and recordation of the agreement. This modification would reduce the expense and time associated with returning to the Planning Commission for a second hearing. A redline of proposed modifications are provided at Attachment B. To recommend the proposed amendments to the City Council the Planning Commission must find that they conform to the Petaluma General Plan and are consistent with the public necessity, convenience, and general welfare in accordance with Section 25.050(B) of the Implementing Zoning Ordinance. The Planning Commission has discretion to recommend modification to the staff proposal. If it does so, the Commission should convey the reasons for the modifications to the City Council. A simple majority vote of the Commission member's present, assuming a quorum of Commissioners is present, suffices to approve a resolution recommending action on the amendments to the City Council. 3-1 GENERAL PLAN CONSISTENCY The proposed zoning ordinance amendments are in general conformity with the Petaluma General Plan 2025 in that the amendments do not change the general character of current zoning regulations. The proposed amendments modify the review and approval process for projects requesting a Density Bonus. The changes will reduce process impediments to housing projects that have incorporated affordable housing and therefore facilitate production of essential housing consistent with the City's policies to allow flexibility within the City's standards and regulations to encourage a variety of housing types (Policy 2.2) and to review and adjust city residential development standards that are determined to be a constraint on the development of housing (Policy 3.1). PUBLIC NECESSITY, CONVENIENCE, AND WELFARE The proposed amendments are consistent with the public necessity, convenience, and welfare in that they update and clarify existing regulations, provide greater flexibility to facilitate the production of essential housing for Petaluma residents, implementing the policies of the General Plan. ENVIRONMENTAL REVIEW The proposed zoning text amendments are exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3), which states that CEQA applies only to projects which have the potential for causing a significant effect on the environment. The proposed amendment only modifies review and approval process. Therefore, it can be seen with certainty the proposed amendment would not cause a direct or indirect significant effect on the environment. PUBLIC COMMENT Public notice was published in an eighth page ad in the Argus Courier on September 12, 2019. No specific public comment has been received in response to this public notice as of preparation of this report. ATTACHMENTS Attachment A Resolution Recommending Council Approval of Text Amendments Exhibit 1 Draft Ordinance Attachment B Redline of Proposed Amendments to IZO Sections 27.090 M Chapter 27 Residential Density Bonus 27.010 — Purpose and Intent This chapter is intended to provide incentives for the production of housing for Very Low, Lower Income, Moderate or Senior Housing in accordance with California state law. The purpose of this chapter is to: A. Comply with the state density bonus law in accordance with the requirements California Government Code Section 65915 and amendments and successor statutes. B. Establish procedures for implementing the state density bonus requirements as set forth in California Government Code Section 65915, as amended. C. Facilitate the development of affordable housing consistent with the goals, policies, and programs of the City's Housing Element. 27.020 — Definitions Whenever the following terms are used in this chapter, they shall have the meaning established by this section: A. Affordable Rent. Monthly housing expenses, including a reasonable allowance for utilities, for Rental Restricted Affordable Units reserved for Very Low or Lower Income Households, not exceeding the following calculations: 1. Very Low Income: 50 percent of the area median income for Sonoma County, adjusted for household size, multiplied by 30 percent and divided by 12. 2. Lower Income: 60 percent of the area median income for Sonoma County, adjusted for household size, multiplied by 30 percent and divided by 12. B. Child Care Center. See the definition of "Child Care Center" in Glossary. C. Concession or Incentive. Used interchangeably means such regulatory concessions as specified in California Government Code Section 65915 subdivisions (d) and (h) including, but not limited to, the reduction of site development standards or zoning code requirements, direct financial assistance, approval of mixed use zoning in conjunction with the Housing Development, or any other regulatory incentive which would result in identifiable cost avoidance or reductions that are offered in addition to a Density Bonus. See Section 27.070 of this chapter. D. Density Bonus. A density increase for residential units over the otherwise allowed residential density under the applicable zoning and land use designation on the date an application is deemed complete. E. Density Bonus Housing Agreement. A legally binding agreement between a developer and the City to ensure that the requirements of this chapter are satisfied. The agreement, among other things, shall establish: the number of Restricted Affordable Units, their size, location, terms and conditions of affordability, and production schedule. See Section 27.070 of this Chapter. F. Density Bonus Units. Those residential units granted pursuant to the provisions of this chapter which exceed the otherwise Maximum Residential Density for the development site. G. Housing Cost. The sum of actual or projected monthly payments for all of the following associated with for -sale Restricted Affordable Units: principal and interest on a mortgage loan, including any loan insurance fees, property taxes and assessments, fire and casualty insurance, property maintenance and repairs, homeowner association fees, and a reasonable allowance for utilities. H. Housing Development. Construction projects consisting of five or more residential units, including single family, multifamily, and mobilehomes for sale or rent, pursuant to this chapter. Eff I. Low Income Household. Households whose income does not exceed the lower income limits applicable to Sonoma County, as published and periodically updated by the State Department of Housing and Community Development pursuant to Section 50079.5 of the California Health and Safety Code. J. Maximum Residential Density. The maximum number of residential units permitted by the City's General Plan Land Use Element and Zoning Ordinance at the time of application, excluding the provisions of this chapter. If the housing development is within a planned unit development zone, the maximum residential density shall be determined on the basis of the general plan and the maximum density of the underlying zone. K. Moderate Income Household. A household whose gross income does not exceed 120 percent of the area median income for Sonoma County as published and periodically updated by the State Department of Housing and Community Development pursuant to Sections 50079.5 and 50052.5 of the California Health and Safety Code. L. Non -Restricted Unit. All units within a Housing Development excluding the Restricted Affordable Units. M. Qualifying Resident. Senior citizens or other persons eligible to reside in Senior Citizen Housing. N. Restricted Affordable Unit. A dwelling unit within a Housing Development which will be available for Moderate Income Households or Very Low and/or Low Income Households. 0. Senior Citizen Housing. A Housing Development consistent with the California Fair Employment and Housing Act (Government Code Section 12900 et. seq., including 12955.9 in particular), which has been "designed to meet the physical and social needs of senior citizens," and which otherwise qualifies as "housing for older persons" as that phrase is used in the federal Fair Housing Amendments Act of 1988 (P.L. 100-430) and implementing regulations (24 CFR, part 100, subpart E), and as that phrase is used in California Civil Code Section 51.2 and 51.3. P. Very Low Income Household. Households whose income does not exceed the very low income limits applicable to Sonoma County, as published and periodically updated by the State Department of Housing and Community Development pursuant to Section 50105 of the California Health and Safety Code. 27.030 — Eligibility Criteria A. The City shall grant either: a Density Bonus, or a Density Bonus with a Concession or Incentive(s), as set forth in Section 27.070 of this Chapter, to an applicant or developer of a Housing Development, who agrees to provide one of the following: At least ten percent of the total units of the Housing Development as Restricted Affordable Units affordable to Lower Income Households; or 2. At least five percent of the total units of the Housing Development as Restricted Affordable Units affordable to Very Low Income Households; or 3. A Senior Citizen Housing Development, as defined herein; or 4. Ten percent of the total dwelling units in a common interest development as defined in Civil Code section 4100 for persons and families of Moderate Income Households as defined herein, provided that all units in the development are offered to the public for purchase. 27.040 — Density Bonus and Incentive or Concession Calculation A. The City will allow a Housing Development a Density Bonus and/or a Concessions or Incentive if it meets all the applicable requirements of this chapter. In the event that the minimum requirements for granting a Density Bonus or Concessions or Incentives as set forth in California Government Code section 65915 are amended or modified after the adoption of this chapter by the City, then the lowest applicable minimum requirements in section 65915 or successor statutes shall apply. B. When calculating the required number of Restricted Affordable Units, any resulting decimal fraction shall be rounded to the next larger integer. 4-2 Ordinance No. 2300 N.C.S. 27-2 C. Density Bonus for Low Income Households. If a housing developer elects to construct units for Low Income Households, the Housing Development shall be entitled to a density bonus according to the following Density Bonus calculation: Percentage Low Income Units 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 30% Provision of Low Income Units Percentage Density Bonus Number of Incentives or Concessions 20% 1 21.5% 1 23% 1 24.5% 1 26% 1 27.5% 1 29% 1 30.5% 1 32% 1 33.5% 1 35% 2 35% 3 D. Density Bonus for Very Low Income Households. If a housing developer elects to construct units for Very Low Income Households, the Housing Development shall be entitled to a density bonus according to the following Density Bonus calculation: Provision of Very Low Income Units Percentage Very Low Income Percentage Density Bonus Number of Incentives or Concessions Units 5% 20% 1 6% 22.5% 1 7% 25% 1 8% 27.5% 1 9% 30% 1 10% 32.5% 2 11% 35% 2 15% 35% 3 4-3 Ordinance No. 2300 N.C.S. 27-3 E. Density Bonus for Moderate Income Households. If a housing developer elects to construct units for Moderate Income Households, the Housing Development shall be entitled to a density bonus based on the following Density Bonus calculation: Provision of Moderate Income Units Percentage Moderate Income Percentage Density Bonus Units 16% 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% Number of Incentives or Concessions F. Density Bonus for Land Donation. When an applicant for a tentative subdivision map, parcel map, or other residential development approval donates land that satisfies the requirements as set forth in subsection 3 of this section, the applicant shall be entitled to a fifteen percent density increase above the otherwise maximum allowable residential density for the entire development calculated as follows: Land Donation Percentage Low Income Units Percentage Density Bonus 10% 15% 11% 16% 12% 17% 13% 18% 14% 19% 15% 20% 16% 21% 17% 22% 4-4 Ordinance No. 2300 N.C.S. 27-4 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. Nothing in this chapter shall be construed to enlarge or diminish the authority of the City to require a developer to donate land as a condition of development. 2. The Density Bonus for land dedication shall be in addition to any other Density Bonus earned pursuant to this section, up to a maximum combined increased density of thirty-five percent above the otherwise maximum allowable residential density for the entire development. 3. An applicant donating land shall be eligible for the increased Density Bonus described in this Section if all the following conditions are met: a. The applicant donates and transfers the land to the City, or to a housing developer approved by the City, no later than the date of approval of the City of the final subdivision map, parcel map, or Housing Development Application for the proposed Housing Development seeking the Density Bonus. b. The developable acreage and zoning classification of the land being transferred are sufficient to permit construction of units affordable to Very Low Income Households in an amount not less than ten percent of the number of residential units of the proposed Housing Development seeking the Density Bonus. c. The land proposed to be donated to the City: i. is at least one acre in size or sufficient size to permit development of at least 40 residential units; and ii. has the appropriate General Plan designation and is appropriately zoned for development at the density described in paragraph (3) of subsection (c) of Government Code section 65583.2 and successor statutes; and iii. is or will be served by adequate public facilities and infrastructure; and iv. is donated no later than the date of approval of the final subdivision map, parcel map or Housing Development application seeking a Density Bonus and has 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; and V. is within the boundary of the proposed development or within one-quarter mile of the boundary of the proposed development; and vi. has a proposed source of funding for the very low income units prior to the approval of the final subdivision map, parcel map, or Housing Development application seeking the Density Bonus. 4-5 Ordinance No. 2300 N.C.S. 27-5 27.050 — Development Standards for Affordable Units A. Restricted Affordable Units shall be constructed concurrently with Non -Restricted Units unless both the City and the applicant agree within the Density Bonus Housing Agreement to an alternative schedule for development. B. Restricted Affordable Units shall remain restricted and affordable for a period of 30 years. The City may require a longer period of time if required by the construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy program. C. In determining the maximum Affordable Rent or Affordable Sales Price of Restricted Affordable Units, the presumed household size as set forth in the City's Housing Program shall be used, unless the Housing Development is subject to different assumptions imposed by other federal or state regulations. D. Restricted Affordable Units shall be built on-site and be dispersed within the Housing Development, except as permitted in subsection E of this Section. The number of bedrooms of the Restricted Affordable Units shall be equivalent to the bedroom mix of the Non -Restricted Units in the Housing Development; except that the applicant may include a higher proportion of Restricted Affordable Units with more bedrooms. The design, appearance and general quality of the Restricted Affordable Units shall be comparable and compatible with the design of the Non - Restricted Units in the Development. The Development shall comply with all applicable Development Standards, except those which may be modified as provided by this chapter. E. Circumstances may arise in which the public interest would be served by allowing some or all of the Restricted Affordable Units associated with one Housing Development to be produced and operated at an alternative development site. Where the applicant and the City so agree, the resulting linked developments shall be considered a single development for purposes of this chapter. Under these circumstances, the applicant shall be subject to the same requirements of this chapter for the Restricted Affordable Units to be provided on the alternative site. F. A Density Bonus Housing Agreement, as described in Section 27.090, shall be made a condition of the discretionary permits for all Developments subject to this chapter. The Density Bonus Housing Agreement shall be recorded as a deed restriction on the parcel or parcels on which the Restricted Affordable Units will be constructed. 27.060 — Density Bonus for Development of Child Care Center A. A Housing Development meeting the requirements of Sections 27.030, 27.040, and 27.050 above and including a Child Care Center that will be located on the premises of, as part of, or adjacent to, such a Housing Development shall receive either of the following: 1. An additional Density Bonus in an amount of square feet of residential space that is equal to or greater than the amount of square feet in the Child Care Center; or 2. An additional Incentive or Concession pursuant to Section 27.070 which results in an identifiable cost reduction or avoidance. B. When a Housing Development is providing a Child Care Center in accordance with this chapter, then the project conditions of approval shall require that: 1. The Child Care Center care shall remain in operation for a period of time that is as long as or longer than the period of time during which the affordable units are required to remain affordable; and 2. Of the children who attend the Child Care Center, the children of Very Low Income Households, Lower Income Households, or persons or families of Moderate Income shall equal a percentage that is equal to or greater than the percentage of affordable units that are required pursuant to Section 27.040. C. The City shall not be required to provide a Density Bonus or Incentive or Concession for a Child Care Center if it makes a written finding, based upon substantial evidence, that the City has adequate Child Care Centers. 4-6 Ordinance No. 2300 N.C.S. 27-6 27.070 — Development Concessions and Incentives A. Subject to subsection B of this Section, the City shall provide a Concession or Incentive, for qualified Housing Developments, upon the written request of an applicant. The number of Concessions or Incentives provided shall be as follows: 1. For a Housing Development that provides either 5% of the units affordable to Very Low income households, or 10% of the units affordable to Lower income households, the developer is entitled to one Concession or Incentive. 2. When the number of affordable units is increased to 10% Very Low income units, or 20% Lower income units, the developer is entitled to two Concessions or Incentives. 3. When the number of affordable units is increased to 15% Very Low income, or 30% Lower income, the number of Concessions or Incentives is increased to three. B. The City may grant any one of the following as a Concession or Incentive: 1. A waiver or modification of site development standards or a modification of zoning code or architectural design requirements. These include one or more of the following (each item below is considered a Concession or Incentive): a. Reduced minimum lot sizes and/or dimensions. b. Reduced minimum lot setbacks c. Reduced minimum outdoor and/or private outdoor living area. d. Increased maximum lot coverage e. Increased maximum building height and/or stories. f. Reduced on-site parking standards, including the number or size of spaces and garage requirements. g. Reduced minimum building separation requirements. h. Reduced street standards, e.g., reduced minimum street widths. 2. 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. 3. Other Incentives or Concessions proposed by the developer or the City which result in identifiable cost reductions or avoidance. C. Upon request by the applicant, the City shall not require a vehicular parking ratio, inclusive of handicapped and guest parking, that exceeds the following: 1. Zero to one bedrooms: one onsite parking space. 2. Two to three bedrooms: two onsite parking spaces. 3. Four and more bedrooms: two and one-half parking spaces. If the total number of parking spaces required for a Housing Development is other than a whole number, the number shall be rounded up to the next whole number. For purposes of this subsection, a Housing 4-7 Ordinance No. 2300 N.C.S. 27-7 Development may provide onsite parking through tandem parking or uncovered parking, but not through on -street parking. D. The City shall grant Incentive(s) or Concession(s) requested by the applicant unless the City can make a written finding, based upon substantial evidence, of any of the following: 1. The Incentive or Concession is not required in order to provide for affordable housing to Very Low, Low, or Moderate Income Households. 2. The Incentive or Concession would have a specific adverse impact, as defined in paragraph (2) of subdivision (d) of Section 65589.5 of the California Government Code, upon public health and safety or physical environment or any real property that is listed on the California Register of Historical Resources and for which the City determines there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact without rendering the Housing Development unaffordable to Very Low, Low, and/or Moderate Income Households. 3. The Incentive or Concession would be contrary to state or federal law. 27.080 — General Application Requirements A. An application for a Density Bonus, Incentive or Concession shall be made as follows: 1. An application for a density bonus, incentive, concession, waiver, modification or revised standard shall be submitted with the first application for a permit for a Housing Development and shall be processed concurrently with those permits. The application shall be on a form prescribed by the Community Development Director and shall include the following information: a. A brief description of the proposed Housing Development, including the total number of dwelling units, Restricted Affordable Units, and Density Bonus Units proposed. b. The zoning and general plan designations and assessor's parcel number(s) of the project site, and a description of any Density Bonus, Incentive, or Concession, requested. c. A vicinity map and preliminary site plan, drawn to scale, including building footprints, driveway and parking layout. d. If a Concession or Incentive is requested, the application shall provide evidence as to why the Concession or Incentive is necessary to provide the Restricted Affordable Units in accordance with Section 27.070 of this Chapter. Such evidence shall include, but is not limited to an explanation as to the actual cost reduction achieved through the concession or incentive and how the cost reduction allows the applicant to provide the Restricted Affordable Units, and any supporting documentation. e. Level of affordability of the Restricted Affordable Units and proposed method to ensure affordability. f. If a Density Bonus or Concession or Incentive is requested for a land donation, the application shall show the location of the land to be dedicated, provide proof of site control, and provide evidence that all of the requirements and each of the findings included in Government Code Section 65915(g) and Section 27.040 (F) can be made. 2. In accordance with State law, neither the granting of a Concession or Incentive, nor the granting of a Density Bonus, shall be interpreted, in and of itself, to require a general plan amendment, zoning change, variance, or other discretionary approval. 3. This Chapter implements State Density Bonus Law. Any Density Bonus, Incentive or Concession sought by an Applicant shall be made pursuant to this chapter and may not be combined with similar requests under State Density Bonus law. 4-8 Ordinance No. 2300 N.C.S. 27-8 27.090 — Density Bonus Housing Agreement A. Applicants for a Density Bonus, Incentive or Concession shall enter into a Density Bonus Housing Agreement (Agreement) with the City, approved by the City Council, B. Following execution of the Agreement by all parties, the completed Agreement shall be recorded and the conditions filed and recorded on the parcel to be developed and/or an alternative site for the proposed Housing Development, if the Housing Development is off-site. C. The f dk c: i nt a Aa . he e,',ie [N�j W° . 0.W a`, rr;lieu`(:'A'O� rlav ... gw+r<<<t &d' i,vit:;lr ; :ant 4.irr n _„'t'v dmol.f'I rC ! i:�:t�iRti:aVK:i �. ,i,..s� ,gdlsnik ('e' ;' _,fid-.{�`�r-rn cv i r. r,. o,. > F„, .E .•+y°�; mne - .�n , a:> lap ,G�.t,..,d. r:,.p.. �"�l.r.bi.c �.. ts1,, u � ....:p:1 ,.:.i,.4 �cia,ia° ;}:3;fl"'. F;"k;;l:' R,ip P:rRicdtf„t... P"k apipC)vr'C, ai'ie s @l pak( ,:ile';:. Phf'vt^f"'uo ilna: 'rP??I;" oppFrr'v,=,i, o, t.°k`il ”#"c. a Cl c#pw Rs n1A hekyj :roc-E^:o.^,"4d jjri l! 'p U' '18il D. The Agreement shall run with land to be developed and/or the alternative site for the proposed Housing Development and be binding on all future owners and successors in interest and shall include at a minimum, the following: 1. The total number of units approved for the Development, including the number of Restricted Affordable Units. 2. A description of the household income group to be accommodated by the Restricted Affordable Units, and the standards for determining the corresponding Affordable Rent or Affordable Sales Price. 3. The proposed location, dwelling unit sizes (square feet), and number of bedrooms of the Restricted Affordable Units. 4. Term of use restrictions for Restricted Affordable Units of at least 30 years for Low and Very Low units. 5. A schedule for completion and occupancy of Restricted Affordable Units. 6. A description of any Concession or Incentive, if any, being provided by the City. 7. A description for remedies of breach of the agreement by either party (the City may identify tenants or qualified purchasers as third party beneficiaries under the Agreement). 8. Other provisions to ensure implementation and compliance with this chapter. E. In the case of for -sale Housing Developments, the Density Bonus Housing Agreement shall provide for the following conditions governing the initial sale and use of Restricted Affordable Units during the applicable use restriction period: 1. Restricted Affordable Units shall, upon initial sale, be sold to eligible Moderate Income Households at an Affordable Sales Price and Housing Cost, or to Qualified Residents (i.e., maintained as Senior citizen housing) as defined by this chapter. 2. Restricted Affordable Unit shall be initially owner -occupied by eligible Moderate Income Households or by Qualified Residents in the case of Senior citizen housing. 3. The initial purchaser of each Restricted Affordable Unit shall execute an instrument or agreement approved by the City restricting the sale of the Restricted Affordable Unit in accordance with this chapter during the applicable use restriction period. Such instrument or agreement shall be recorded against the parcel containing the Restricted Affordable Unit and shall contain such provisions as the City may require ensuring continued compliance with this chapter and the state Density Bonus Law. F. In the case of rental Housing Developments, the Density Bonus Housing Agreement shall provide for the following conditions governing the use of Restricted Affordable Units during the use restriction period: 4-9 Ordinance No. 2300 N.C.S. 27-9 1. The rules and procedures for qualifying tenants, establish Affordable Rent, filling vacancies, and maintaining Restricted Affordable Units for qualified tenants; 2. Provisions requiring owners to verify tenant incomes and maintain books and records to demonstrate compliance with this chapter. 3. Provisions requiring owners to submit an annual report to the City, which includes the name, address, and income of each person occupying Restricted Affordable Units, and which identifies the bedroom size and monthly rent or cost of each Restricted Affordable Unit. 4-10 Ordinance No. 2300 N.C.S. 27-10