HomeMy WebLinkAbout09/19/1995, 2 - UPDATE OF THE CITY'S AFFORDABLE HOUSING INCENTIVES AND STANDARDS. �I�IgIII�IIIIIII��II�I��II ".7 r - M G ATE:
ci o san t��s oB�spo
WaGo COUNCIL AGENDA REPORT ITEM NUM
FROM: Arnold Jon ommunity Development Director; By: Jeff H�sociate Planner
SUBJECT: Update of the City's Affordable Housing Incentives and Standards.
CAO RECONEWENDATION: 1) Introduce ordinance amending the Municipal Code to revise
the City's affordable housing incentives and standards as recommended by the Planning
Commission; and 2) Direct staff to initiate an amendment to the Housing Element requirements
regarding term of housing affordability for consistency with State law.
REPORT-IN-BRIEF
State housing laws have undergone numerous changes in recent years, particularly with regard to
affordable housing requirements and incentives. The City's Affordable Housing Incentives, first
enacted in 1985, closely follow State law, and offer density bonuses and assistance in return for
the development of affordable housing for very-low, low, and moderate income households, and
for senior housing. The proposed ordinance amendment will bring San Luis Obispo's affordable
housing incentives in compliance with State law, and help accomplish several affordable housing
programs in the City's Housing Element.
The Housing Element includes programs which promote affordable housing. For example,
Program 1.22.13 calls for streamlined development review procedures to encourage affordable
housing projects, and Program 1.22.17 calls for coordinated public and private actions to
encourage affordable low- and moderate income housing. To help implement these and other
affordable housing programs and to comply with changes in State law, the City needs to update
its Affordable Housing Incentives by amending Chapter 17.90 of the Municipal Code.
DISCUSSION
Planning Commission Action
At its August 23rd meeting, the Planning Commission unanimously recommended that the City
Council approve the updated Affordable Housing Incentives, retaining the incentives for moderate
income persons, and with a 30-year term of affordability for units designated as affordable. The
Commission also recommended that the City Council amend the Housing Element requirements
regarding term of housing affordability for consistency with the proposed ordinance revision and
with State law.
Description of Proposed Changes
The housing incentives apply to new residential development projects or five or more units, either
for sale or rental, and to condominium conversions. They implement State law which grants
"affordable" housing projects a 25% density bonus "by right", plus at least one additional
incentive unless the City Council makes written findings of fact that the additional incentive is not
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Mij% COUNCIL AGENDA REPORT
Staff Report
Page 2
required to achieve affordable housing goals. "Affordable" housing is defined in the City's
Affordable Housing Standards which are revised periodically and generally follow State and
Federal standards for Section 8 and other housing programs. Before a residential project
incorporating a density bonus or other incentive can receive construction permits, the property
owner must enter into a recordable agreement with the City guaranteeing long-term affordability
of the required number of dwellings, in a form agreeable to the City Attorney. The primary
changes consist of-
0
f■ Emphasizing incentives for housing affordable to "very-low" and "lower" income households;
■ Lowering the minimum percentage of affordable units required to qualify for incentives from
25 to 20 percent ;
■ Granting developers "an additional incentive" in addition to a density bonus for qualifying
residential developments;
■Including a density bonus for projects which target at least 50 percent of the units for qualifying
seniors;
■ Including a "preliminary review" process to
streamline affordable housing projects;
A Sample Density Bonus Calculation for an
■ Describing findings which the City Council Affordable Housing Project
must make if it determines that additional Project Application Example:
incentives (beyond a density bonus) are not
required to achieve affordable housing Land Use: Apartments, 2 bedroom
objectives. Zoning: R-3
Base Density: 18 density units Site (DUUA.
To implement Program 1.22.13 of the Housing Area: 2.5 Acres, leveltopography.
Element, the incentives now include a provision
that affordable housing projects "Shall receive Allowed Density based on zoning and area:
high priority processing, to the extent allowed by 2.5 X 18 = 45 DUs, or 45 2-bdrm. apts.
law." Priority processing is not, however, a #of Units to be affordable to Lower Income
waiver of development review, and normal Households = .20 X 45 = 9 apts. (20%)
environmental review requirements would still
apply. Density bonus allowed = .25 X 45 = 11.25
or 11 apartments (round down)
Eligibility for density bonuses is determined by Total Units allowed (including density
the Community Development Director based on bonus) = 45 + 11 = 56 apartments.
the City's incomelhousing cost limits, and on
project information submitted by the project
►�u►�Illll��P��ull��"��1 city Of san lois OBISPO
= COUNCIL AGENDA REPORT
Staff Report
Page 3
developer. Requests for additional incentives beyond the standard density bonus require that a
proposal be submitted for City Council approval. Affordable dwellings produced through the
incentives are available to qualified occupants without regard to race, religion, national origin,
sex, occupation or other affiliation. The City's Housing Authority provides occupant screening
services, upon agreement with the affordable housing developer, to screen qualified occupants
based on income level or, in the case of senior housing projects, on age.
Policy Issues
This update is essentially "houseloeeping" item to keep the Municipal Code current with State law
and City policies; however two provisions of the draft may raise policy issues or questions of
general plan consistency. These deal with affordable housing for moderate income households
and with the minimum term of housing affordability.
Should Incentives for Moderate Income Housing Be Retained? Until 1990, State law allowed local
governments to grant an automatic density bonus to new residential projects in which at least 25
percent of the dwellings were targeted for moderate income households. In 1990, new State
standards took effect which reflected a new emphasis on housing for very-low (households earning
50% or less than the County median income) and lower income (51 to 80% of County median
income). Moderate income(households earning 81 to 120% of County median income), with the
exception of senior households and condo conversions, were no longer entitled to an automatic
density bonus under State law.
Under State law, cities must offer density bonuses and other incentives to developers of very-low
and lower income, senior housing, and condominium conversions for low- and moderate income.
They MaY offer incentives for moderate-income housing provided that such incentives do not
"undermine the intent" of State law to encourage lower income housing in new housing
developments (Govt. Code 65917). Accordingly, moderate-income density bonuses may be
offered in addition to, but not k1W of incentives for the development of very-low/lower income
housing. For condominium conversions, State law continues to specifically include the
development of "moderate' cost housing, and in housing projects in which at least 50% of the
units are designated for senior citizens aged 62 years or older (minimum age is 55 years for
projects of at least 150 units).
This update would not change existing incentives for housing affordable to moderate income
households. The Housing Element and Land Use Element both encourage the development of
housing affordable to very-low, low and moderate income households. The Housing Element
recognizes the need for the development of affordable housing for moderate-income households,
and requires that 5% of the dwellings in new, in-city housing developments shall be affordable
to moderate income households, and that 20% of the dwellings built in expansion areas shall be
affordable to moderate-income households. The Housing Element also states that the City should
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COUNCIL AGENDA REPORT
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Page 4
help provide housing opportunities for all income groups. According to the 1990 Census, about
17 percent of the City's households are moderate income.
In Considering related housing matters, the City Council decided not to include moderate income
housing in exempting affordable housing from Residential Growth Management, and in waiving
Planning, Building, and Engineering development fees for affordable housing. These actions
appeared to have been based, in part, on information provided to councilmembers at that time
suggesting that development incentives were not needed to encourage affordable moderate income
housing and that moderate income households could already afford to purchase a home in San Luis
Obispo. The City's updated Affordable Housing Standards indicate that to qualify as "affordable"
to a moderate income household, a house's sales price must not exceed $158,325. According to
the San Luis Obispo Board of Realtors, the average price for a 3 bedroom, single family,home
in the City in April 1995 was $220,812, a sales price which is well above the moderate income
limits, and "affordable" to only about 11% of the City's 16,920 households unless a homebuyer
has substantial equity or ability to make a large downpayment.
What is the Appropriate Term of Affordability? Policy 1.22.1 of the Housing Element says that
to qualify as affordable, dwellings should remain affordable for "as long a period as legally
permissible, but in no case less than 50 years." For projects receiving "financial benefits" or
special subsidies from the City, the affordable dwellings are to remain "permanently affordable."
This is inconsistent with State law.
State law requires that affordability for most affordable housing projects be guaranteed for 30
years,. the term for a typical home mortgage, or for a longer time if required by government-
assisted financing. Projects receiving only a density bonus and not an additional incentive must
maintain affordability for at least 10 years. A thirty-year affordability term can be viewed as
essentially "permanent" since it coincides with the typical fixed mortgage term.
This approach balances public benefits of long-term affordability with greater flexibility for
individual owners and lenders. Requiring a fifty year or longer term of affordability is desirable
to extend housing benefits for the longest possible time; however this term is inconsistent with
State law and may discourage the production of affordable housing since longer affordability terms
place greater limits on the ability of owners or lenders to resell the property to recapture
investment and "pull out" the owner's equity. The proposed update continues to use the minimum
30-year standard, or as otherwise required by State law. To maintain consistency between the
General Plan and related City standards, the Council should amend Policy 1.22.1 of the the
Housing Element to maintain consistency with the Affordable Housing Standards and with State
law, as recommended by the Commission. .
Attachments:
I
— 7
����n�►�Ni�fllllpll�° 91111 city of San IuIs OBISpo
NOMS" COUNCIL AGENDA REPORT
Staff Report
Page 5
-Draft Ordinance
-Amended Ch. 17.90 - Affordable Housing Incentives
-Affordable Housing Standards
-Chapter 4.3, California Government Code
a-s
ORDINANCE NO. (1995 SERIES)
AN ORDINANCE OF THE CITY OF SAN LUIS OBISPO AMENDING CHAPTER
17.90 OF THE MUNICIPAL CODE, AFFORDABLE HOUSING INCENTIVES AND
STANDARDS.
WHEREAS, the City's General Plan policies encourage the production of housing
which meets the needs of very-low, low, and moderate income households; and
WHEREAS, Municipal Code Chapter 17.90 establishes affordable housing incentives
and standards for the City of San Luis Obispo, and provides that the Community
Development Director shall publish and revise as needed a schedule of rental rates and sales
prices for dwellings which will be affordable to very-low, low and moderate income
households; and
WHEREAS, The Housing Element, adopted September.20, 1994, provides for
certain changes in the manner in which affordability standards are set and administered, in
conformance with state law; and
WHEREAS, It is the City's desire to administer its housing programs so as to
maximize affordable housing opportunities in the City through the provision of density
bonuses and other incentives; and
WHEREAS, The Planning Commission and City Council have held public hearings
and determined that Ch. 17.90 needs updating to comply with State law, and to help acheive
the City's affordable housing goals; and
WHEREAS, the Director of Community Development has determined that proposed
amendments are not a "project" as defined in Section 15378 of the California Environmental
Quality Act (CEQA) since they involve general policy and procedure making and are,
therefore, exempt from the provisions of CEQA.
q'L�o
Staff Report
Page 2
NOW, BE IT ORDAINED by the Council of the City of San Luis Obispo as follows:
SECTION 1. Environmental Determination. The City Council has determined that
adoption of this ordinance amendment is not a "project" as defined by CEQA and is,
therefore, exempt from the provisions of CEQA.
SECTION 2. Affordable Housing Incentives Amendments. Chapter 17.90 of the
Municipal Code shall be amended as shown in Exhibit "A."
SECTION 3. Notice and Publication. A summary of this ordinance, together with the
names of councilmembers voting for and against, shall be published once in full, at least
three (3) days prior to its final passage, in the Telegram-Tribune, a newspaper published and
circulated in this city. This ordinance shall go into effect at the expiration of thirty (30) days
after its final passage.
INTRODUCED AND PASSED TO PRINT by the Council of the City of San Luis Obispo at
its meeting held on the day of , 1995, on motion of
seconded by and on the following roll call vote:
AYES:
NOES:
ABSENT:
ATTEST: Mayor Allen Settle
City Clerk
APPROVED:
V<
ff rge sen, ty torney
a- �
Exhibit A
1 Chapter 17.90 this code.
B. "Density bonus" means a density
3 AFFORDABLEHOUSINGINCENTIM increase of at least twenty-five percent over
4 ' the maximum density otherwise allowable
5 under the zoning regulations.
6 Sections: C. "Director" means the Community
7 17.90.010 Purpose. Development Director or his authorized
8 17.90.020 Definitions. representative.
9 17.90.030 Standard incentives for D. "Lower income households" shall
10 housing projects, have the meaning set forth in California
11 17.90.040 Standard incentives for Health and Safety Code, Section 50079.5;
12 conversion of apartments to provided the income of such persons and
13 condominium projects, families shall not exceed eighty percent of
14 17.90.050 Alternatives or additional the median income within the county.
15 incentives. E. Pefserts-a€ "' low er-medernte
d...
16 17.90.060 Relationship to other City income [x� .iso] s" shall have the meaning
17
procedures. "`
P set forth m California Health and Safety
18 17.90.070 Agreements for affordable Code, Section 50se9a;
19 housing. F. "Moderate income households"
20 17.90.080 Fees. shall include those persons and families
21 17.90-090 Affordability .�:....�:»,.:,w.........
Affor standards. :: # N
22 17.90.100 Occupant
scree sly-ae�exeeed
23 one hundred twenty percent of the median
17.90.010 Purpose. income within the county. (Ord. 1035 § 1
5 (part), 1985)
26 The purpose and intent of this chapter is to 9'tf wpt' <''
27 ...... .. ;::....; ; b1
encourage housing projects which . ::.:::,. to
J tendal,.rt>cos#s<='or sal t+li`c
x:.<:.:..>:.v,;.:.,:..,,
28 in �:: h:. Cnx,x.>:,.
corporate units affordable to ver, lorkx 'rci29 �fo
lowe�� and moderate income households' > :. t::<>;.:.:;•::.;:>,�; :.s:::..,.:�xYn.;;: N�k»<>�:<::;;;.;::: : <;>::
: �:
Nt):.w ...,4t..Y.y ,::a::nw..'ltM>?:.Y::.vnvyn;.` ,.x...:24 �•n' r:il. p•�, ..n .. Y.
30
.� .:Moots and which conform to
31 City development policies and standards, by "
32 providing density bonuses, or other 17.90.030 Standard incentives for
33 equivalent incentives, as required by housing projects.
34 California Government Code Section 65915,
35 et seq. (Ord. 1035 § 1 (part), 1985) A. This section shall apply only to
36 � pP y y
housing projects consisting of five or more
37 17.90.020 Definitions. dwelling units.
38 B. When a developer agrees to
39 For the purposes of this chapter, the construct at least twenty-€iw percent of the
40 following words and phrases shall have the units otherwise allowable under the zoning
41 meaning set forth below: regulations for persons or families of low&
42 or moderate income, the Director shall grant
43 A. "Density" means' residential the developer, upon the developer's request,
44 density as defined in Section 17.16.010 of a density bonus equivalent to an increase in
1
a-�
I density of ONO twenty-five percent over
2 the density otherwise allowed by the zoning
3 regulations ":s ,
the deyelepe
„. .'
-te erAy one density bene
..y.'.yw„6'arj;;.ty;> }kts :::;yxok:'`;;t?'::tj}t%#s•;2::a:?a`bC`,<;?::j:oi'?t?..te�v -
shaH be entitled
4 ,.
1� ?
�I
5
dermis-seetietr.Y a :..u.
•:« ,�!':x..:. .t.IfiCP.11.ti�S'�P5CC1��<:t�:.:�pG�t�II
I,!??• n.(�?,a4k Y.w;a<w" xta:..aa::a,vasxw:iii::a..:w:<;a::aYD::J.,a ;�a..;.
6mortx,,. {'<J,
7 C. When a devel((��}fppr agrees to .::<r.t.Y;.,.
`:pe g ,R::,,$%i5'y. ,A;:+::..fi,s:•yaa;. �'xik%,}Yr;
Ie�:: rat >to; 13
ct at 1 :..::. >" 't,..F:l '
8 construct cent of .*.. <;��..�::�:a.:•t�r�>�':�;�s;?>.<�.«'.};:tk::�':,at<;'�'k;
east ten per the units
otherwise allowable under the zoning
10 regulations for oweFincome f �?
g �1
kt Y;.
�''
11 households, the 'Director shall rant the WWI
�t0,
.12 developer, upon the devel a �. .>:t;,• . t „ ..: .;; ::'" m<t:.
13 densitybonus
equivalent t0 an ease m �
14
density of twenty-five percent over
t ;
Gm
15 the density otherwise allowed b zoning
y the zo
g
16 regulations-1164: � �;;<" Y£1� , M ,..,........
d RMOM Q :::,..
a,�e cs'� <aa Fk�cr.: .t�1,�.r,; .
17 5q v: S:u:ti: y ft, ::. ?....} .. :4::
An
L; efeat%leas ;'ofte?Ef>t ;iVet(> .etit
i.' ?. T y request for a density bonus
18 ,:>.:.,..,.::.::.,.
xsw.A ... awa ww :k xS » p ar;.''.th�r:;�ate&MV1e9 tinder -seed shall
D. When a developer agrees to be in writing, and shall include the
20
” . : ;. ,t: y ,. :.):. t girt a `#re following information, as well as an
21 ;, xt£ :.:;: # Y
" w?? h"' [ additional i
restdentd : � nformation required b the
22 `" f �,.....;"i,..:J4.`k ;.�:?i ':tt.ti.;.'6,:a,,..�<ix° 'i. '.t;:Yr:'' '.1 Y 1
a s �M 'M .. S tle Lite i! Director:
' :Ys )i^•'.'::i:$);. s•::%*.:a.t,>.�,Y::`::t:s:,,,tb?i:"`..:c:.::i:;.?Sc
2 3 4.. t i.;:t.:: t r isi ':`$�;,.;gii:::{,{::o:H 5
o'ta Gev
24
en:� :.<,;.x�,��[p�st�>: �t�t� 1. The name of the developer;
w:> .> •;. .„i? .tls 2. The location
#';,::>i..;�;...>�;k?;;;>,�•��}::..::t:.:.a::.t,::,+:,..>:;.:.,a.:.�'...a..,5 <` ,.�.;.:. . of the proposed roject;
2 6 p
tt4`=a > se :>�i €isYf}3 of< f 3. The density allow
ed under the
27 h' zoning
regulations, as well as the proposed density;
28
Dtli < Il!> ” Po ,
:'. ..F iwb ' +tlirrnitt Mons,. 4. The number and (bedroom
i:$n.$: .q.':w.o1y''•F^s><k.. .,+3;s $�x'F' .;,t>:,:FF,:xs .,ti":r' >"',t.,'rt;:.;•+s vtl. type (b count) Of
29 3:. .$:: '.T S >, e .{ C<{T.:,1:;Y:.,t.
` 4tpsaeii` :reci dwellings and
ta€>
; »> F :v... g identification of those
30
< st;;age::>of< l :<' teueiastriet dwellings which are to
yry�,4.�,�.;.?�>...w� ?••� ,;�. .': ;V.r;,,� ��"�......'..�e..�.�.5 g be affordable to each
31 es 'iii:noit7'9EIlSt? household income category;
32
Ifa developer agrees to 5. Whether the dwellings will be offered for
33 construct:'' :>,;„z:�r.<mar ox::,-*J "to,
'-A� s
srm :,tro<v [<: Avice :off#ate sale or f
34 ,: nl*"<;: ,t:,; . or rent;
t;. ,;•.;➢4<yy; ,"an3 ::. .a;,ri::fr:x.„::"sa„sy''.„F .±k; ,: ,,v,:�F:;M.
s�.;:.: ; ;.:..
The proposed
3 5 ; ,.,; p es price, financing
p`'. •, ... :,:..>.::?'ei:?'sy ;.y,?ap !XR R;y, tFk::p`; ?G Po
::,:
terms tat rates or other
36 , ren er factors which
.- .. F.v�..!�AMA.]: ..0 }J.._
will make the dwellings affordable to lower
37
olds
come households or low
m moderate
38 F¢:. .<::}u�;, � ..�: and
ot [ ilefktYi'S income
f households. Ord. 1035 1
39 M.:E.:.Sii::q : :}f, l § (C--)
y... w:. Y:• t ,
9.
0:1
d 27Y ¢,
}.. > _< + Qtt150?<;..k .'ls " f.: 1985
a t�?'•> +(Y$J» ,?n,,.^�i1i' tyi�" :ii'.k.i.. "4:
41 ; •+�k.. t;;...?r: .:: ^.C;.:. fc.}scy .�.s
c nt t s;;; ;;ext' r.i 17.90.040 Stan
.w. >': : .>; lord incentives for
42iiiQI £fo�da6SextYsx"�i
���«�. 'swx+�F..�.Y.aavaat wac,4awi:::a <�xa„ ,Yt,�„n., „ conversion of apartments to
condominium projects.
44
2
a—/
1 A. When an application for approvalk :z to convert
apartments to a condominium Er
,:�t �;.t5rt :;1r�S[trekt�� ts:�r:;l :µ died
3 project agrees to provide at leastthirty-three
a8 P
4percent of the units of the proposed9':::•.,.::ylG:�::.,;pv.; r,.::::;{;u,`�b� £':>:'..,.i``::ga,.; a.:.x;,..',w;•A4.Mkt; ?. a.; *!,..:..;
5 «
condominium protect to:<lt��� g
6 and-dies of to ""° �. "`
Wor moderate income,
7 or fifteen percent of the units of the 17.90.050 Alternative or additional
8 proposed condominium project to very- incentives.
9 lower income households, and i meas
10 to pay for the reasonable, necessary A. When a developer agrees to
H. ,...,
11 administrative costs incurred by the City construct housing for households of
12 pursuant to this section, the Director shall tw> lower xry"" }
13 grant a density bonus equivalent to an �ee�te--er-�,�� income ...............,•<""•``
14 increase in the units of twenty-five percent `:'�" "" s an
erit�es? and desires an incentive
15 over the number of apartments, to be other than a density bonus as provided in
16 provided within the existing structure or Section 17.90.030 of this chapter, or when
17 structures proposed for conversion; an applicant for approval to convert
18 provided, the Director may place such apartments to a condominium project agrees
19 reasonable conditions on the granting of the to provide housing for households of very-
20 density bonus as he finds appropriate low, lowei. or moderate income, qr
21 including, but not limited to, conditions ��/yy".�I�x ``" `"`°' ""'° ,.,
\;uxa:u �::int;ua::Oiuti;:
ow
22 which assure continued affordability of units households and desires an incentive other
t than a density bonus as provided in Section
t3sAsequent eeeupmts whe are 17.90.040 efhis-ei , the developer or
25 persens of: e :i•..- a i... ,,
es of low or-Fnedete the applicant. shall submit a proposal for
26 ineeme er lower ineeme househelds. consideration by the Council.
27 B. Nothing in this section shall be B. If the proposal is submitted by a
28 construed to require the City to approve a developer of a housing project, the proposal
29 proposal to convert apartments to shall include the information set forth in
30 condominiums. Section 17.90.030.(G) e€-this-eie-Pter, as
31 C. An applicant shall not be eligible well as a description of the requested
32 for a density bonus under this section if the incentive, an estimate of the incentive's
33 apartments proposed for conversion financial value in comparison with the
34 constitute a housing development for which financial value of the density bonus allowed
35 a density bonus or other incentives were in Section 17.90.030 e€this-eh , as well
36 provided under Sections 17.90.030 or as the basis for the comparison estimate.
37 17.90.050 of tM9 ekapteF. (Ord. 1035 § 1 Alternative incentive proposals may include
38 (part), 1985) but are not limited to one or more of the
391? 1.,y following:
,
`"z.
;. :.
40
41
I. onus
: , Density b 1n excess of that provided
42 r; d1Ei�...;��. ;. .. ;err.:': ; �;. ..
a ? ek3< 30 of this chapter;
43 K. h .,.. " t�;� >,=;;��•.:�.:.,;:: ;...yv in Section 17.90.0 p
; 4.o:.`f' i.:::. &c..c,,.0 >:>:tx :. ;3.'<.:u.•.>, a:GC,.v :v<.::'.:..:5.. '9.4
tvs; yz ;:ttcu3:,:1( 4.:acY+� 2. Waiver of application
44 � ':: k .:.�;,_<���.,;:ri;.;�ry�<;���:;�:<:.:���,:,:><t:.;.v>t�., ..�:: PP and processing
'or�a`�b� sc�ue fees;
3
a-ia
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1 3. Waiver of utility connection or park land any alternative incentive. The developer or
2 in-lieu fees or park land dedication applicant has the standard incentive of a
3 requirement; density bonus under Sections 17.90.030 and
4 4. City funded installation of off-site 17.90.040 of this chapter if the Council fails
5 improvements which may be required for to approve an alternative incentive.
6 the project, such as streets or utility lines; E. The Council action on any
7 5. Write-down of land costs; alternative incentive proposal shall be by
8 6. Direct subsidy of construction costs or resolution. Any such resolution shall
9 construction financing costs; include findings relating to the information
10 7. Approval of exceptions to subdivision or required in subpart B or C of this section.
11 zoning property development standards, but F. The Council shall respond to a
12 only to the extent that such exceptions proposal within ninety days after submittal
13 would be authorized by relevant provisions of a complete proposal. The City Clerk
14 of this code; provided, that any proposal for shall notify the developer or the applicant of
15 an incentive which requires a direct financial the Council's response. Should the Council
16 contribution from the City shall also include fail to approve a proposal for alternative
17 provisions for assuring continued availability incentives within ninety days after submittal
18 �` ,;,. x.v
complete proposal,�: �: � .:;o:v..'. �<.;: �:.;.. � tS::. of a p the proposal shall
19 ..,<.. :<::. po
P Pouf be
*' deemed denied and the
Ci Cl
20 City Clerk shall so
'n. dAi.. "2'k..k`?�Ti:.,<.� OT..::.:;}•,:xwy',"js ..,::
x advise the developer or applicant in writing.
21 (Ord. 1035 § 1 (part), 1985)
22
23 l?'>' ^'?sMY"r "' +:mo:....:w+.:;:.sn,..:..;...... . ...s...;. w,•.
�'> '. vuf rite mttltiv , iutve .i 17 90.060
�.:x< �� `<.:<:.'.:>< ;•' � ;. '_ . .... Relationshipto other Cit
y
24
kTCris: 2 >: 1`;:;: ''fi�etEf.(� . 115: '17
25 ;=•; :. x: w: r« <:x>;: sf...:: .,y :.. .. . M procedures.
�ttcn�nd'? �' � ,tl31It:
I thepropo al s ubmitted by an A. Projects into
2 applicant for 1 incorporating affordable
PP approval to convert apartments housing and receiving density bonuses,.
3 to a condominium project, the proposal shallE" or alternative incentives as
4 include those relevant items set forth in provided in this chapter iYe' igf
5 Section 17.90.030.(G}�el teF plus
;.RlS.u<..:ittR::uK<Y:o-m'A':Y,...' awXxewu`,u3sXc'Ma3t'.iC>w t64.
6 the requested incentive, an estimate of the lat!�'
7 incentive's financial value in comparison i;6�edurea as expedifi.81-1--le. --
8 with the financial value of the density bonus Operation of Sections 17.90.030 or
9 as set forth in Section 17.90.040 of tW 17.90.040 a *As- 13epEeF or approval of
10 ehapter and the basis for the comparison alternative incentives as provided in Section
11 estimate. Nothing in this section shall be 17.90.050 of-tis--eheptef shall not be
12 construed to require the City to provide cash construed as a waiver of standard
13 transfer payments or other monetary development review procedures or an
14 compensation. The City may .reduce or exemption of the project from City
15 waive requirements which the City might development standards other than those
16 otherwise apply as conditions of conversion explicitly listed in the approving resolution.
17 approval. Should a project fail to receive any required
18 ' D. Nothing in this section shall be City approval, the density bonus or
19 construed to require the Council to approve alternative incentive granted under this
4
1 chapter shall be null and void. chapter or any alternative incentives granted
B. Applications of Sections pursuant to Section 17.90.050 of this
3 17.90.030 and 17.90.040 e€Eltis-ehepteF to chapter. The agreement shall run with the
4 projects shall be ministerial 'acts for land and shall be binding upon all the heirs,
5 purposes of environmental review. successors or assigns of the project or
Environmental documents need not be filed property _owner,
{:F' 'FS S!n'Xv: vvHx\y:Y:}n3.v.vh.SwN:rvvx:'::tiWK...v
7 solely for recordation of agreements ittft ;; for nod of not less than
: �< n.
8 concerningthe density bonus and provision
ty P thirty years,
gas
x. .�.va3':Lwi3(v:3%:in'Si4wisv'i.i%:wW)f<vW':'Avwxa�'ivM.V:<viSM
9 of affordable housing. Normal S�ti 1avir;
10 environmental review procedures shall apply eeetinied by m - a
c r ,..... .—a--vrzmr�r
11 to the project applications. mederste—ineeme—er- fewer- ineeme
12 C. If the Council approves an heasehelds. (Ord. 1035 § 1 (part), 1985)
13 alternative incentive as provided in Section
14 17.90.050.,such approval shall be subject to 17.90.080 Fees.
15 and conditioned u n� tT1C:. environmental
tuv.
16 determination being made for the project in A. No fee in addition to normal
17 the usual manner. The Community project application fees shall be charged for
18 Development Department shall outline for a request for a density bonus pursuant to the
19 the Council any probable, significant provisions of Sections 17.90.030 or
20 environmental effects which would result 17.90.040, except for reasonable, necessary
21 from the proposed incentive. (Ord. 1035 § administrative costs incurred by the City
22 1 (part), 1985) pursuant to Section 17.90.040 of—tl}i�
ehapteF.
17.90.070 Agreements for affordable B. A fee not to exceed the amount
25 housing. charge for "preapplication concept review"
26 may be charged for proposals submitted
27 Prior to the issuance of construction pursuant to the provisions of Section
28 permits for any project incorporating a 17.90.050 e€this-ehepteF. (Ord. 1035 § 1
29
bonus or wp T eF incentive as provided (part), 1985
..;v..:.
30 in this chapter, the City and the project
31 owner(s) shall enter into an agreement in a 17.90.090 Affordability standards.
32 form acceptable to the City Attorney, to be
33 recorded in the office of the county A. The Community Development
34 recorder. The agreement shall specify Department shall publish and revise as
35 mechanisms or procedures to assure the needed a schedule of rental rates and sales
36 continued affordability and availability of the prices for dwellings which will be affordable
37 specified number of dwelling units to any= to households with incomes as provided in
38 k::...:; . ...v..
�'k" :,i� j3.?:R:i;2:a,:: �..,.y'.. xtL::.^"m'v'>,Cp<:Y:YR:k:>.:::v:�;;;�'
" ' ' '..:ue[zwt;; cha ter. The
?' ow ': ; n =:.v :-::::<:< tie this p schedule shall
39 �'{: v'w::.i:o.:.: '...
:...?'€<°} substantially conform with the affordability
40 standards as established by state or federal
41 lew or. medeMe if"fne, e zeweriftee law. In general, ! end
42 . The twenty five pefeent ef the qualifying
43 agreement shall also set forth those items
44 required by Section 17.90.030 G. of this sates pr-iees shall net e3weed difee L
5
I quahfying heusehold's in be able to occupy affordable housing made
2 ineefae. available pursuant to this chapter. (Ord.
3 B. The maximum rental rates and 1035 § (part), 1985)
4 sales prices as revised, generally on an
5 annual basis, shall remain in effect for
6 projects receiving bonuses or
7a1 eve incentives under this
cimpte Xil..�.r
X
8 wml a
9
iM
10
11 fer- flel an ffem the
12 the dweHings af-e ready fer- eeeupaneyr
13 (Ord. 1035 § I (part)) 1985)
14
15 17.90.100 Occupant screening.
16
17 A. The affordable dwellings
18 developed pursuant to this chapter shall be
19 available to qualified occupants without
20 regard to race, religion, national origin, sex,
21 occupation or other affiliation. Occupants
22 may be screened on the basis of age only to
23 qualify those occupants seeking housing
24 designed for the elderly.
25 B. The City housing authority shall
26 screen prospective occupants so that
27 dwellings developed pursuant to this chapter
28 shall be occupied by households with Hie
29
!ewer-
30
Owners
31 of projects shall enter into agreements with
32 the housing authority for such screening
33 services.
34 C. Preference in occupant screening
35 shall be given to those employed within or
36 residing within the City or the immediately
37 surrounding area, to the extent that this
38 provision does not conflict with state or
39 federally funded housing assistance
40 programs which may apply to a particular
41 project, or other applicable law. This
42 section is to insure that those households
43 having the greatest difficulty obtaining
44 housing at market rates within the City shall
6
City of San Luis Obispo
AFFORDABLE HOUSING STANDARDS
June 1995
Purpose
These standards apply to all residential projects within the City. They set maximum rental
costs or sales prices based on income level and dwelling size, and are used by developers,
citizens, housing groups, City staff and commissions, and housing agencies, and implemented
by the Community Development Director. Besides defining the often misunderstood term
"affordable housing", the standards promote the construction of housing which meets
residents' needs, and help explain the City's housing requirements. Anyone with questions
about the standards are encouraged to call the Community Development Department at (805)
781-7170.
The City's Housing Element requires that a certain portion of new housing be sold or rented
at levels affordable to households of very-low, low, and moderate incomes. In addition,
State and local law allows residential density bonuses and certain other incentives in return
for developers agreeing to construct affordable housing, pursuant to Chapter 17.90 of the
Municipal Code. The City uses these standards to determine if housing projects are
"affordable" and qualify for density bonuses, incentives and other forms of housing
assistance.
How the Standards Are Determined
The standards prepared by the City's Community Development Department, and are updated
periodically to reflect income limits which are adjusted annually by the U.S. Department of
Housing and Urban Development (HUD) and published by the State Department of Housing
and Community Development (HCD) for each county, as shown in Table 1. By law, the
upper income limit for "very-low income" households is 50 percent of the median County
income; the upper limit for "lower income" households is 80 percent of the median County
income; and the upper limit for "moderate-income" households is 120 percent of the median
County income.
Affordable Housing Standards
Page 2
TABLE 1: 1995 ANNUAL INCOME LIMITS
INCOME NUMBER OF PERSONS IN HOUSEHOLD
GROUP
1 2 3 4 5 6 7 8
VERY LOW 14ffl0 16,900 19,050 21;150 22,850 24,550 26,250 27,900
LOWER 23,700 27,050 30,450 33,850 36,550 39,250 41,950 44,650
MEDIAN 29,600.' 33;850 38,050
4
300 ' : 45; 7
.5 : 49,050 :52 450 55,850
MODERATE 35,550 40,600 45,700 50,750 54,800 58,850- 1 62,950 67,000
Affordable Rent Limits
The maximum monthly rents, including costs of utilities, to qualify as affordable housing are
listed in Table 2. The limits are based on a formulas set by state law' and shall be computed
as follows:
■ For very-low income households: Affordable monthly rents shall not exceed 30% of
50% of the annual median County income divided by 12, and adjusted for household/unit
size (Health & Safety Code Sec. 50105).
■ For lower-income households: Affordable monthly rents shall not exceed 30% of 60% of
annual median County Income divided by 12, and adjusted for household/unit size (H&S
Code Sec. 50079.5).
■ For moderate-income households: Affordable monthly rents shall not exceed 35% of
110% of the annual median County Income divided by 12, and adjusted for household/unit
size (H&S Code Sec. 50093).
Affordable Sales Prices
The maximum initial sales prices for affordable new housing is based on a formula which
accounts for what a typical very-low income, low-income and moderate-income household
can afford to pay for housing, following HUD guidelines. Sales price limits are determined
by multiplying the annual income limit of the income group, adjusted for household size,
multiplied by 2.5 for very-low and lower income households, and by 3 for moderate income
households. For example, the maximum initial sales price for a 2-bedroom dwelling would
be 2.5 X $30,450 = $76,125 for a three-person, lower-income household; and 3 X $45,700
= $137,100 for a three-person, moderate-income household. When the number of
residents is not known, the City's affordability standards assume the following household
Affordable Housing Standards
Page 3
sizes corresponding to the size of the proposed affordable dwellings, as defined in the Zoning
Regulations :
■ Studio unit: use the income limit for a one-person household.
■ One-bedroom unit:use the income limit for a two-person household.
■ Two-bedroom unit:use the income limit for a three-person household.
■ Three-bedroom unit:use the average of limits for four and five-person households.
■ Four-bedroom unit:use the income limit for a six-person household.
Determining Maximum Rent Cost or Initial Selling Price
Using Table 2, determine household income group and read across to find rent or sales price
under the dwelling size. For example, the maximum monthly rental cost of a 1-bedroom
apartment affordable to a very-low income household is listed as $340.
TABLE 2: 1995 Rent/Sales Affordability Standards
INCOME DWELLING SIZE
GROUP TENURE STUDIO 1-BDRM 2-BDRM 3-BDRM 4-BDRM
VERY LOW MAXIMUM $370 $423 $476 $550. $613-
MoNTHLY RENT'
MAXIMUM SALES $37,000 $42,250 $47,625 $55,000 $61,375
PRICE'
LOWER MAXWUM $444:':
::MONTHLY:RENT
MAXIMUM SALES $597250 $67,625 $76,125 $887000 $98,125
PRICE
MODERATE MAXuvtUM; $1;221 $1,412 $1,574
ONTHLY:RENT
MAXIMUM SALES $106,650 $121,800 $137,100 $158,325 $176,550
PRICE
'Maximum rent shall include a reasonable allowance for utilities paid directly by tenant (gas,
electricity, water, sewer, trash collection), but not cable TV or telephone.
'Sales prices may exceed these amounts only if the City determines that the down payment,
plus buyer's closing costs and monthly payments (PITI) excluding utilities over the life of the
Affordable Housing Standards
Page 4
financing, provide a level of affordability equivalent to the maximum sales price financed at
prevailing market terms.
Long-term Affordability
Affordable rental housing units are maintained as affordable rentals through recorded
agreements between a property owner and the City, its Housing Authority, or another
government agency. These agreements shall specify: a) the maximum rents based on the
same formula which established initial rent levels as a condition of City approval; b) the term
for which rental units must remain affordable; and c) terms under which affordability is
maintained after sale or transfer of the property. By City ordinance, affordable dwelling
units must remain affordable for a minimum of 50 years. For dwellings which receive City
financial support (eg. infrastructure improvements, development permit fee waivers, land
cost write-down, or other similar incentives), the dwellings must remain permanently
affordable by recorded agreement.
Affordable owner-occupied housing is maintained through an Affordable Housing Agreement
which is recorded as an encumbrance on the property, and secured by a recorded deed of
trust. The Agreement and deed of trust shall establish the monetary difference between the
initial purchase price and the initial appraised value as an "affordability loan" payable to the
City. The loan shall accrue interest at a rate to be set by the City when the agreement is
executed, amortized over 30 years or other mortgage term as allowed by the Lender. The
monthly payments (principal plus interest) on the affordability loan are waived as long as a
City-approved eligible owner continues to own and reside in the property as a principal
residence.
Upon sale, transfer, gift or inheritance of the property, the City or its designated Housing
Authority, shall have first right of refusal to purchase the property at its current appraised
value. The consideration for the City's first right of refusal shall consist of 1 percent of the
remaining affordable loan balance. The balance of the City's loan, after deducting the 1%
first right of refusal cost, shall be credited toward the purchase price if the City or its
designated Housing Authority chooses to exercise its purchase option.
a-�7
GOVERNMENT CODE GOVERNMENT CODE � 65915
finding,based upon substantial evidence,that this time period is insufficient for creation of,or annexation
to,a public entity or an assessment district that would finance the maintenance or operation:_
As used in this section,"development project"and"local agency"have the same meaning as.provided
mile of mass.transit guideway in subdivisions(a) and(c) of Section 66000.
(Added by Stats.1988,a 1309, § 1.)
ied pursuant to Section 14045 of
the demonstration program shall Chapter 4.3
a mass transit guideway station
n a specific,adverse impact upon DENSITY BONUSES AND OTHER INCENTIVES
-fly mitigate or avoid the specific
Section veloper; ordinance; conditions; as-
;ection "density bonus"means a 65915.5. Conversion of apartments to condomini- sessment on use of space'for other
3ential densityallowed under the urn arefproject; eligibility; procedure purposes; finding necessary for
65917.5. Child Bare facility in commercial or in- chan$e
dustrial project; density bonus or de-
ar into a development agreement
r 3 of Division 1 of Title 7 to Law Review Commentaries
Building and Bargaining in California William Fulton .
=nsity bonus granted pursuant to (1983)4 CaLLawyer No.1P,p.36.
and county to grant the density
that the housing development will
§ 65915. Requirements of developer ordinance specifying method of providing incentives;'prelim-
.to Article 10.6(commencing with inary development proposal; definitions r
(a) When a developer of housing proposes a housing development within the jurisdiction of the local
.o Chapter 2.6 (commencing with government,the city,county,or city and county shall provide the developer incentives for the production
of lower income housing units within the development if the developer meets the requirements'set forth
in subdivisions (b) and (c). The city, county, or city and county shall adopt an ordinance which shall
agency from complying with the specify the method of providing developer incentives.
ter 2.6(commencing with Section
(b) When a developer of housing agrees or proposes to construct at least (1) 20 percent of the total
units of a housing development for lower income households,as defined in Section 50079.5 of the Health r
and Safety Code, or (2) 10 percent of the total units of a housing development for very low income
households, as defined in Section 50105 of the Health and Safety Code, or (3) 50 percent of the total
dwelling units of a housing development for qualifying residents,as defined in Section 512 of the Civil
wr..emunbered§ 66008 and amend. Code, a city, county, or city and county shall either (1) grant a density bonus and at least one of the i
%418,§ 4. concessions or incentives identified in subdivision(h)unless the city,county,or city and county makes a
written finding that the additional concession or incentive is not required in order to provide for
affordable housing costs as defined in Section 500525 of the Health and Safety Code or for rents for the
targeted units to be set as specified in subdivision-(c), or (2) provide other incentives of equivalent
ment project; .prohibition of fee financial value based upon the land cost per dwelling unit
e and operation as condition for (c) A developer shall agree to and the city, county, or city and county shall ensure 'continued #
affordability of all lower income density bonus units for 30 years or a longer period of time if required by
the construction or mortgage financing assistance program, mortgage insurance program, or rental 1
iody of a local agency for a public subsidy program. Those units targeted for lower income households,as defined in Section 500795 of the
y not include an amount for the Health and Safety Code,shall be affordable at a rent that does not exceed 30 percent of 60 percent of
other form of payment is required area median income. Those units targeted for very low income households,as defined in Section 50105 of
3 fulfill a condition of the approval. the Health and Safety Code,shall be affordable at a rent that does not exceed 30 percent of 50 percent of ,
r the maintenance and operation of area median income. If a city, county, or city and county does not grant at least one additional i
as follows: concession or incentive pursuant to paragraph(1)of subdivision(b),the developer shall agree to and the ,
he specific development project on city, county, or city and county shall ensure continued affordability for 10 years of all lower income
nprovement serves 19 or fewer lots housing units receiving a density bonus.
tial evidence,that it is infeasible or (d) A developer may submit to a city, county, or city and county a preliminary proposal for the
nt or to annex the property served development of housing pursuant to this section prior to the submittal of any formal requests for general
plan amendments, zoning amendments, or subdivision map approvals. The city, county, or city and
district,street lighting district,or county shall,within 90 days of receipt of a written proposal,notify the housing developer in writing of the
or operation may be required for a procedures under which it will comply with this section. The city, county, or city and county shall
of the improvement,either the local establish procedures for carrying out this section,which shall include legislative body approval.of the
interuuux or operation,or the area means of compliance with this section. The city, county, or city and county shall also establish
once the maintenance operation, procedures for waiving or modifying development and zoning standards which would otherwise inhibit the
other form of payment pursuant to utilization of the density bonus on.specific sites. These procedures shall include,but not be limited to,
month period upon making a such items as minimum lot size, side yard setbacks, and placement of-public works improvements.
he
other
he by asterisks •u ' Additions or changes Indicated by underline; deletions by asterisks • •
87
a�—�o
§ 65915 GOVERNMENT CODE GOVERNM
(e) The housing developer shall show that the waiver or modification is necessary to make the housing either (1) grant a
units economically feasible. county, or city and
other incentives os
(f) For the purposes of this chapter,"density bonus" means a density increase of at least 25 percent conditions which a:
over the otherwise maximum allowable residential density under the applicable zoning ordinance and land families of low and
use element of the general plan as of the date of application by the developer to the city,county,or city
and county. The density bonus shall not be included when determining the number of housing units (b) For purposes
which is equal to 10 or 20 percent of the total. The density bonus shall apply to housing developments number of apartme:
consisting of five or more dwelling units. (c) For purposes
(g) "Housing development," as used in this section, means one or more groups of projects for to require a city,
residential units constructed in the planned development of,a city, county, or city and county. For compensation but n
purposes of calculating a density bonus, the residential units do not have to be based upon individual county might other
subdivision maps or parcels. The density bonus shall be permitted in geographic area of the housing (d) An applicant
development other than the areas where the units for the lower income households are located. county,or city and
(h) For purposes of this chapter, concession or incentive means any of the following: formal requests for
of receipt of a writs
(1) A reduction in site development standards or a modification of zoning code requirements or this section. The ci
architectural design requirements which exceed the minimum building standards approved by the State which shall include
Building Standards Commission as provided in Part 2.5(commencing with Section 18901)of Division 13 of
the Health and Safety Cade, including, but not limited to, a reduction in setback and square footage (e) Nothing in th
requirements and in the ratio of vehicular parking spaces that would otherwise be required. proposal to convert
(2) Approval of mixed use zoning in conjunction with the housing project if commercial, office, (f) An applicant
industrial, or other land uses will reduce the cost of the housing development and if the commercial, apartments propose
office,industrial,or other land uses are compatible with the housing project and the existing or planned incentives were pro
development in the area where the proposed housing project will be located. (Added by Stats.l&
(3) Other regulatory incentives or concessions proposed by the developer or the city, county,or city
and county which result in identifiable cost reductions.
This subdivision does not limit or require the provision of direct financial incentives for the housing Condominium oat.
development,including the provision of publicly owned land,by the city,county,or city and county,or the CJ-S.Estates H 14
waiver of fees or dedication requirements.
Q If a developer agrees to construct both 20 percent of the total units for)ower income households and § 65916. Direc.
10 percent of the total units for very low income households,the developer is entitled to only one density term o
bonus and at least one additional concession or incentive identified in Section 65913.4 under this section
although the city,city and county, or county may, at its discretion,grant more than one density bonus.
(Amended by Stats.1983, c. 634, § 1; Stats.1984, c. 1333, § 2; Stats.1989, c. 842, § 3; Stats.1990, c.31 Term of availability
(A.B.1259), § 3,eff. March 26, 1990; Stats-1991, c. 1091 (A.B.1487), § 64.)
Historical and Statutory Notes 1. In general
1984 Legislation 1989 Legislation The granting of a de
Operative effect of Stats.19M. a 1333, see note under Application of Stats.1989, a 842, to charter cities, see local ordinance provis
Civ.C.§ 513. Historical Note under§ 65913.4. financial contribution"
OpsAtty.Gen.370,4-2
Z. Term of availabiL
Notes of Decisions Cities and counties a
Construction with other law 2 of San Diego,Inc.Y.City of Oceanside(App.4 Dist.1994) use restriction provisi
33 CaLRptr2d 137,27 CaLApp.4th 744.
2. Construction with other law § 65917. Legislati
L In general Municipal growth control initiative,by discouraging de-
Municipal growth control initiative which conflicted with velopers from proposing housing qualified for density In enacting this f
state statutes designed to promote construction of low bonuses,impermissibly conflicted with state and city bo- g
income housing,by encouraging developers to build larger nus law. Building Industry Asa'n of San Diego, Inc.v. offered by the city,
developments with more design and other amenities,was City of Oceanside(App.4 Dist.1994)33 CaLRpts.2d 137, economic feasibility
invalid as of date of its adoption. Building Industry Ass'n 27 CalAppAth 744. an aitreement by a
density bonus or car
§ 65915.5. Conversion of apartments to condominium project; eligibility; procedure (Amended by Stats.
(a) When an applicant for approval to convert apartments to a condominium project agrees to provide
at least 33 percent of the total units of the proposed condominium project to persons and families of low
or moderate income as defined in Section SM93 of the Health and Safety Code,or 15 percent of the total 1989 Legislation
units of the proposed condominium project to lower income households as defined in Section 500795 of
the Health and Safety Code,and agrees to pay for the reasonably necessary administrative costs incurred Application of Stals
by a city, county, or city and county pursuant to this section, the city, county, or city and county shall Rrstorical Note under
Additions or changes Indicated by underline; deletions by asterisks • • • Addr
38
o2 /�
-
ENT CODE GOVERNMENT CODE § 65917
tke_ housing either (1) grant a density bonus or (2) provide other incentives of equivalea financial value. A city,
county, or city and county may place such reasonable conditions on the granting of a density bonus or
asst 25 percent other incentives of equivalent financial value as it finds appropriate, including, but not limited to,
Hance and bind conditions which assure continued affordability of units to subsequent purchasers who are persons and
families of low and moderate income or lower income households.
county,or city
f housing units (b) For purposes of this section, "density bonus" means an increase in units of 25 percent'over the
developments 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
of projects for to require a city, county, or city and county to provide cash transfer payments or other monetary
d county. For compensation but may include the reduction or waiver of requirements which the city,county,or city and
upon individual county might otherwise apply as conditions of conversion approval.
of the housing (d) An applicant for approval to convert apartments to a condominium project may submit to a city,
is are located. county,or city and county a preliminary proposal pursuant to this section prior to the submittal of any
formal requests for subdivision map approvals. The city,county,or city and county shall,within 90 days
icements or of receipt of a written,proposal,notify the applicant in writing of the manner in which it will comply with
equthis section. The city,county,or city and county shall establish procedures for carrying out this section,
-ed n
it the State
of
of Division 13 to which shall include legislative body approval of the means of compliance with this sectio
square footage (e) Nothing in this section shall be construed to require a city,county,or city and county to approve a
ice• proposal to convert apartments to condominiums.
nmercial, office, (f) An applicant shall be ineligible for a density bonus or other incentives under this section if the
the commercial, apartments proposed for conversion constitute a housing development for which a density bonus or other
sting or planned incentives were provided under Section 65915.
(Added by Stats.1983, c. 634, ft 2.)
county,or city Library References
for the housing Condominium e-1.
id county,or the U.S.Estates H 145,146.
e h' -'holds and § 65916. Direct financial contribution to housing developments through participation in costs;
o; !density term of availability
no,. .as section
ie density bonus. Notes of Decisions
Stats.1990,C.31 Term of availability 2 37364 and 66916 when they use federal community devel-
opment block grant funds to provide housing affordable to
persons of low and moderate income by (1) purchasing
1. In general property from private developer and reconveying it to him
The granting of a density bonus or an exemption from a for nominal awn, or (2) purchasing an Interest in the
charter cities, see local ordinance provision does not constitute a "direct property allowing them to restrict use of it to affordable
financial contribution" for purposes of this section. 64 housing. 69 OpsAtty.Gen.721,Oct.16, 1986. .
OpsAtty.Gen.370,4-29-81.
2. Term of availability
Cities and counties are required to comply with 3D-year
(App.4 Dist 1994) use restriction provisions of Government Code sections
4.
by discouraging de- 4 65917. Legislative intent; developer agreement
ossified for density
h state and city bo- In enacting this chapter it is the intent of the Legislature that the density bonus or other incentives
•San Diegq, Ina v. offered by the city,county,or city and county pursuant to this chapter shall contribute significantly to the
33 CaLRptr2d 137, economic feasrbtlity of• ' 'lower income housing in proposed housing developments. In the absence of
nr
an aeement by a developer in accordance with Section 65913.5 or 6x915, a locality shall not offer a
density bonus or any other incentive that would undermine the intent of this chanter.
lure (Amended by Stat3.1989, c,842, 4 4.)
agrees to provide
,nd families of low Historical and Statutory Notes
ercent of the total 1989 Legislation
Sections incur a
red of
true costs lnt:arApplication of Stats.1989, 84$ to charter cities, see i and county shall Historical Nate under 466913.4.
. . , Additions or changes Indicated by underline; deletions by asterisks • • '
39