HomeMy WebLinkAbout10/03/1995, C-3 - UPDATE OF THE CITY'S AFFORDABLE HOUSING INCENTIVES AND STANDARDS. MEETING DATE:
�����► ►�VII11111�Pp1�°������II City of San LUIS OBISPO 3 -qs
COUNCIL AGENDA REPORT STEM M]Bg:
o �
FROM: Arnold Jonas Community Development Director; By: Jeff H , ssociate Planner
SUBJECT: Update of the City's Affordable Housing Incentives and Standards.
CAO RECOMMENDATION: Give final passage to Ordinance No. 1282 (1995 Series), as
introduced on September 19, 1995, updating the City's Affordable Housing Incentives to comply
with State law, and to implement Housing Element programs which call for streamlined
development review procedures for affordable housing, and for coordinated public and private
actions to encourage affordable housing for very-low, low, moderate and senior households.
DISCUSSION
The City Council introduced Ordinance No. 1282 on September 19, 1995. The ordinance
amends Municipal Code provisions regarding affordable housing, and updates the City's
standards to meet State law. The effects of the ordinance amendment will be to expand
incentives for the production of affordable housing, and to establish streamlined development
review procedures for affordable housing projects.
The ordinance amendment will go into effect 30 days after final passage.
ALTERNATIVES
The Council may, by motion: 1) reject the ordinance, or 2) continue action.
Attachment:
Ordinance No. 1282 (1995 Series), as introduced.
C'
ORDINANCE NO. 1282 (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
WWHEREREAS, 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 maldng and are,
therefore, exempt from the provisions of CEQA.
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i
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 "protect" 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 19th day of September. , 1995, on motion of
Roalman , seconded by Williams and on the following roll call vote:
AYES:
NOES:
,
ABSENT:
i
Mayor Allen Settle
ATTES
C' C1
By Kim Condon, Assistant City Clerk
APPROVED:
ffrge sen, ty orney
�.m �- 3 3
Exhibit A
Chapter 17.90 this code.
2 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
s 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. Pe-sons m x` a low er edezate
16 17.90.060 Relationship to other City income l is se Tp. shall have the meaning
17 procedures. set forth in California Health and Safety
1s 17.90.070 Agreements for affordable Code, Section 50893;
19 housing. F. "Moderate income households"
20 17.90.080 Fees. shall include those persons and families
:.ti.,Y........ JW..;+.iJY.+MJJn..-0y:^. FJ>`<.:T.!?::.h,.w+.J
Affordability standards. osetaeomes; eycre ": 3ltE
21 17.90.090 y rig ' .
o:.. ..; ....., :z f...�[S ll�7C,ex
22 17.90.100 Occupant screening. a >= ss>:3iatc'tiia ;> i . m
one hundred twenty percent of the median
14 17.90.010 Purpose. income within the county. (Ord. 1035 § 1
25 (part), 1985) ,
�a".?'y`G �:o.....V.;f.:X�^;...
t of this chapter is to <<"<>-' <:;fAriaFfetill?s :tr
2 6 The purpose and inter p
N:;.:oJk.s;.:;: yjo.;<•":v: < ,.,E .<.:.:
27 encourage housing projects which
..........
e �.J;y,,.;,.:..,,r.,;J:J..<,�►,�
r:� ;
2 s into rate units affordable to ;v' ..Wolk.
Co start)arclsv€:tssiieil>``b';<a:ilr
incorporate .:.,n ,
"'eect
29 lower' and moderate income households,>J
O:^:�^:!"!�::CiiJ:nY' ,:,.i<>J'l.<n::nY'nli n...:.. •:�� and which conform to staff afltrfeeratut'°'<c'ssulces::
30 �#1E1�ciEI21`ttlg3etli
OYSs
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 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-€rw 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
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I density of ateast twenty-five percent over
2 the densityotherwise allowed by the zoning lower- ineeme heusehelds the develepef
3 re ulations. an '>':# e< ese :: : < eshall be entitled te efily ene density be
»'.a e .
east tEt.
E.
:.:::....:.:::::::.......:.::.::::.:..:::..::.
5 development described zn°SectFnn E > 'lhe dvelopel submit ;.. a
617 9E14Y5Q. W preptpu rY PFopioSa 'fort' a cfsvel+ppmenY of
;.
7 C. " 6:6. ai„rifWhen a develo er agtees to
8 construct at least ten percent of the units any.; #opal xeque`sts #oleuetai,f p
9 otherwise allowable under the zoning arneiitlmsnt , crmrig amendments 0
10 regulations for lower- income sttbdt....u�oi �:a. .; <a
"<
11 households, the Director shall grant the � spa9:�;:::,....r
12 developer, upon the developer's request, a s':%'.Y�::t'.::?::3i:>�:<•,r.:::$cti,::I^iiJ::a..:..:::a..:}.$:a;.:•.::}:.:.;:$r;o.;.::,.:::rsa:a.:. '.:.'::::a<:;'J; :.;.n::?}::`,;E.:t:::
e
Increase In
13 densitybonus equivalent to an
"eaten -five percent over densityof : } : :::..C..C.
:iaiY::4. .ti}i
15 the density otherwise allowed by the zoning
ca ))r<>a�.tlt>tts f��teir
16 re Mations%>.'
17 e1r 'tb1.e:for...;at.feast.one:; f.;the:deYeogii# Any request for a density bonus
g... _,.::..
18 <.:}21( Iiti.V...�.5 shall
';au;}.,.::::..::.v::...,va:,f::•::}xww.ay.: ..v:....:::.v:.,..:.ivRaa;;h$^vR::
19 D. When a developer agreAes 1toe be in writing, and shall include the
m}xY.n:: : ;`}::Y. :,_ .:..,......:r:...... m`valw �f V
20 aL.yleast.. .. 450).. r+ a following information, as well as any
:;:;;:> :}$<;.>}}::: :>:::.......:: .:...:.._:..; .,.:.:..; :,.t additional information required b the
21 total dire butts to:;a,arestdertt� Vie:. eq Y
t
22q t�altf' SE 'c :> escfents :.......y. .a. : . Director::
eCtiOr<'5 ' .`'Of=th £ Yi > O(l ` E ...�: ....
23 S .t?
q:t:$'f?::}J:i'i:! ::*}:S:Y�::i:::?::}:f.}}is ii:a'£.>:m:.}•.:}a.';'F.;i}'A �:$:::a.,'."`".a:"Y. ^�j}:•"y"
24
Oe rfeve . .rt � 1. The name of the developer;
Ml
25
f f'<;:>< gtlS 2.. The location of the proposed project;
.JV`.Y :,.;J:,::::,� i'`^gx.^:i;;;:s::s>:f::::..:}•N,.:Y:.$"r.'.:^.;:r a:p
«� :: :..}.,a.J:.:,,.:f:f.::.<:»: <.v<..:. .... f. w under the zoning
2 6 . alenti€tt an< tncreasertilx
<desY}::.<; o >af 3.. The density alio ed g
'.i:.?::is\4::i.....:::i::'::$: ::::p ;::::isi?is ::..?):!::%::�:V:i$� :J".n. wag;hM•"!%
27 feast >t m. :;fiveg;i <>:;cye ,..- im;�ensx regulations, as well as the proposed density;
�p}�p^
• } lin 5
2 8 otherwise allowed by the zonrngegttlats; 4..The number and type (bedroom count) of
N....
d t�' devI' ' I�aCl::;be; "'bfe;<.:;; the dwellings and identification of those
29 ;:.}..J...:�.}�P ;..,:..}::::.}:„?f.Jri:>:.: :-':.`:> :$$;a:v:a<i•;
30 afl ast€::one;}.of<;;t3 e` ieu�a t Lv.tttc�ettt.0::,N dwellings which are to be affordable to each
1 income category;
31 mi
household g ryi
32 r If,...a:.. developer agrees to 5.1 Whether the dwellings will be offered for
s...a:_.}:......�
3 3 constructausz '” fo <' vnn 'of `` dere sale or for rent;
""" m'" `h a 1 9(� /�[[�� 6. The proposed sales rice, financing
3.4 CatP C111eS;liSteLl SO . V���a0`4 1 P Po P
;:.}S;a....i:: .:i;#;::'Mt: jw.::�!�f::; Fa::
3 5 (C}, attd,(UJ abt tCie cleveln",pert,sEtaIl terms, rental rates or other factors which
36 ertnt tct a'detlr°hoes"sof a�1easE tt3) will make the dwellings affordable to lower
37te.: entand shaiI.:, , g�'lle tib Ve income households or low and moderate
38 aE.1Qn o <,the evaget } .ts income households. (Ord. 105 § 1 (part),
sf1985)
3 9 described Set trol# 17:90.45E), "G'il
4 0 iia; a�pon; toes s zruestte o
i : :: .Y.. $.....::... a f, .._G::$' .y a„'? , /0
41 at(dttnal; cerrtys< n + cigc>;;:, . >fi 17. .040 Standard incentives for
::>:;_«::?; � conversion of apartments to
a2 �ttc�ased.<:: LSlt�ttJ<f`o�:;affordab���tt . co P
. ;
43 condominium projects.
44
2
6'-3-657�
ea <ad f
rapproval
A. When an application fo
t►''"`rentsfortl 'etel
to convert apartments
to a condominium e>€srfes
>:t;d> arita�
n
least thirty-three
3 project agrees to provide at m'
units of the sedonfoNautee» lk�<< ► o= s4
4 percent of the P� ......:....,V.Mw.�............... .......,...»,w:.�::M.$
5 condominium project to>.I0o04e, lcasfer-seas star ara
6 dies of lower or 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 ogres somas
10 to pay for the reasonable, necessary A. When a developer agrees to
11 administrative costs incurred by the City construct housing for households of e, y
to this section the Director shall 1 v <lo <` i>>ari x"Re' to _ ede '
12 pursuant .:.:t:.. .::,�:;f}} „ "
13 grant a density bonus equivalent to an m`. " -- income, a < q?alyug
14 increase in the units of twenty-five percent se liouseMR 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, low , or moderate income, o
21 including, but not limited to, conditions gt l sei " w '
22 which assure continued affordability of units households and desires an incentive other
w, :. k,..,`...."•'� ""....':":""° ";":' "�" '" " than a density bonus as provided in Section
to [4�re ..eted: t�q�;eY U.g<>#t'<x ��?� ty
4 17.90.040 e€-t#is-eMpter-, the developer or
e fOM
25 the applicant shall'submit a proposal for
26 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 ehapler-, 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€dis-ebapter-, as well
36 provided under Sections 17.90.030 or as the basis for the comparison estimate.
37 17.90.050 e€-t3tfs-eltagter-• (Ord. 1035 § 1 Alternative incentive proposals may include
38 (part), 1985) but are not limited to one or more of the
w w ,. �,'.:., e following:
39 'h%!. .. }C';16' h££',:#:
"
40 rleuelo}j��`�,.
OEM
: „41it3ttices1. Density bonus in excess of that provided
az `�a .tfi�t:;tZ�}>>yy,:��t:, in Section 17.90.030 of this chapter;
'�” ire 'p� .r2. Waiver of application and processing
w�44 fM� fees;
3
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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
a 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
x "'" " "" . " ` of a complete proposal, the proposal shall be
1s tf'�es "EektiriEts�:<:�t> fe; >.r+�rir
, : :i':i..
x ,> ,i. ,:n•: .ti `ciflitai>Iiss`>iti deemed denied, and the City Clerk shall so.
19 sees:::: •£Era=p .:.i
20 advise the developer or applicant in writing.
21
(Ord. 1035 § 1 (part), 1985)
22
%: .:
23 '°"" 'ot�i�c�<ssh �>� YM} �� 17.90.060. Relationship to other City
.... �,gtride. : ;:�1 2.::
24 ��na�'�?�a�i�e:::to:<�«cte�si ionitis>v, �ia procedures.
...:.{ v(.i:• .::...... R �ri 'a4[v4T
25
1 C. If the proposal is submitted by an A. Projects incorporating affordable
2 applicant for approval to convert apartments housing and receiving density bonusesh
3 to a condominium project, the proposal shall ace €t"ves or alternative incentives as
.::.:....av W}:C:S..J .. ... 3}i}i:':•iinvi!'Hi:}iw•w
4 include those relevant items set forth in provided in this chapter 3'.M" .
M ..
5 Section 17.90.030.(G}e plus rrt rocess . :;tatie<etentialloiveb
6 the requested incentive, an estimate of thelaq[rr
N:..:. w.
7 incentive's financial value in comparison pFeeedum as expeditietts4y as pessible.
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 ef-this 17.90.040 ef-dWs ehapteff or approval of
10 ehapteF; and the basis for the comparison alternative incentives as provided in Section
11 estimate. Nothing in this section shall be 17.90.050 o`vr-this--ehapter 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
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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€4hi&-ehapter 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
6 Environmental documents need not be filed property owner, ri sl less
7 solely for recordation of agreements @10#M for`a period, of not less than
8 concerning the density bonus and provision thirty yeears, ter: A;€wo,.......r ..... c r
9 of affordable housing. Normal Sfa <tauvftem the date K.
10 environmental review procedures shall apply eeeupied„
11 to the project applications. ert ---meee m lower- ieeeme
12 C. If the Council approves an heesehelds. (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 uporC environmental
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 ef-W
ehapter.
A 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 of this-ehaptef. (Ord. 1035 § 1
29 "Oponus or incentive as provided (part), 1985)
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 to households with incomes as provided in
v":: 'h" The schedule shall
m v: w this chapter.38 u�>¢ OeF.'.<� ;T�o ;t�>M:;.: _ aP
39 >s:# .:.-;`. ..."` `'. �y '„ " X substantially conform with the affordability
�.VV., }.Yaa`.::iG5:2 �i!r�it�`w�'x.��'..:::.:':bJv;. �Y�hNk
40 standards as established by state or federal
41 iew e -fnedef'ate-ineeme, e_ 1- _ law. in gefkeiW,
43 agreement shall also set forth those items ` ` ld _«,.t. ineeme e"
44 required by Section 17.90.030 G. of this .
s
3-�
1 que4ifying heaseheld's fa— be able to occupy affordable housing made
2 1. 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 *jW bonuses or
7 it o Yal eltemetive incentive! u;nder this
8 chapter
�au
9 .... .
10
11 net lesg thAn thirw yearts ffem she,4AW
12 the dweRings -e ready fer eeeupeaey.-
13 (Ord. 1035 § 1 (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 die
»:::..:.:...:............................
29fewer e
30 fnede e. 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.
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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 147800 16,900 19,050 21,150 227850 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.' 4230Q 45,700`'. 49,050 52,450 55,850
MODERATE 35,550 40,600 45,700 50,750 54,800 58,850 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.
'0 Three-bedroom unit:use the avers a 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 TSE STUDIO 1-BDRM 2-BDRM 3-BDRM 4-BDRM
VERY LOW ;MnxiNtvM $370 ' $423; $476 $S50 $613
.MoNTHLY RENT'
MAXIMUM SALES $37,000 $42,250 $47,625 $559000 $61,375
PRICe
LOWER -MAXMUM $444 $508.; $571 $660 $736 .':
-MONTHLY°RENT
MAXDAUM SALES $59,250 $67,625 $76,125 $88,000 $982125
PRICE
MODERATE IVIAXIIy[UM $950 $1,086 ;$1,221 $1,412 $17574 '
MONTHLY:RENT
MA)MAUM 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.
2Sales 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
C 3-/2
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. infraitructure 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.
L-howing.r
ey.13
GOVERNMENT CODE
GOVERNIN ENT 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
Wile of mass.transit guideway in subdivisions(a) and (c) of Section 66000.
(Added by Stats.1988,a 1309,§ 1.)
ed pursuant to Section 14045 of Chapter 4.3
he demonstration program shall
a mass transit guideway station DENSITY BONUSES AND OTHER INCENTIVES
z a specific,adverse impact upon
ay mitigate or avoid the speck Section veloper, ordinance; conditions; as-
65915-5. Conversion of apartments to condomini- sessment an use of space'for other '
ection,"density bonus"means a urn project; eligibility; procedure. purposes; finding necessary for ;
lential density allowed under the 65917.5. Child care facility in commercial or in- change.
dustrial project; density bonus or de-
:r into a development agreement
r 3 of Division 1 of Title 7 to Law Review Commentaries
Building and Bargaining in California Vroam Fulton
:nsity bonus granted Pursuant to (198.3)4 CaLLawyer No.1$P.36.
and county to grant the density
.hat the housing development will § 65915. Requirements of developer, ordinance specifying method of providing incentives;'prelim-
inary development proposal; definitions
to Article 10.6(commencing with proposes a housing development within the jurisdiction of the local
(a) When a developer of housing prop P
o Chapter 26 (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 W. 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.
(b) When a developer of housing agrees or p
:er 26(commencing with Section proposes to consteuet 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
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
s wa3 renumbered 5 66008 and amend- Code, a city, county, or city and county shall either(1) grant a density bonus and at least one of the
ate,4 a. concessions or incentives identified in subdivision(h)unless the city,county,or city and county snakes a
written finding that the additional concession or incentive is not required in order to provide for
affordable housing costs as defined in Section 50052.5 of the Health and Safety Code or for rents for the
targeted units to be set as speed 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
;ody of a local agency for a public subsidy program. Those units targeted for lower income households,as defined in Section 60079.5 of the
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
of
other form of payment is required area median income. Those units targeted for very low income households,as defined in Section 50105
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
as follows: concession or incentive pursuant to paragraph(1)of subdivision(b),the developer shall agree to and the
city, county, or city and county shall ensure continued affordability for 10 years of all lower income
he specific development project on
,pravement serves 19 or fewer lots homing tnav receiving a density bonus.
(d) A developer may submit to a city, county, or city and county a preliminary Proposal for the
:tial evidence,that it easible or erved
nt or to annex the property 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
county shall,within 90 days of receipt of a written proposal,notify the housing developer in writing of the
district,street lighting district,or procedures under which it will comply with this section. The city, county, or city and county shall
or operation may be required for a establish procedures for carrying out this section,which shall include legislative body approval.of the
of the improvement,either the local means of compliance with this section. The city, county, or city and county shall also establish
iintenance or operation,or the area procedures for waiving or modifying development and zoning standards which would otherwise Inhibit the
%ante the maintenance or operation, utilization of the density bonus on,specific sites. These procedures shall include,but not be limited to,
other farm of payment pursuant to such items'as minimum lot size, side yard setbacks, and Placement of public works improvements.
:he 24-month period upon maldng a Additions or changes Indicated by underline; deletions by asterisks ° •
ons by asterisks •.' ' $7
C 3/�
65915 GOVERNMENT CODE GOVERN, i
(e) The housing developer shall show that the waiver or modification is necessary to make the housing either (1) grant a
county, or city and
units economically feasible. other incentives o:
(fl For the purposes of this chapter,"density bonus"means a density increase of at least 25 percent conditions which as
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 number of auaarrt e
which is equal to 10 or 20 percent of the total. The density bonus shall apply to housing developments (c) For purposes
consisting of five or more dwelling units. to require a cit
(g) "Housing development," as used in this section, means one or more groups of projects for compensation r.
ation but
residential units constructed in the planned development of a city, county, or city and county. For county mig ht other
purposes of calculating a density bonus, the residential units do not have to be based upon individual
subdivision maps or parcels. The density bonus shall be permitted in geographic areas 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
formal requests for
(h) For purposes of this chapter, concession or incentive means any of the following of receipt of a writs
(1) A reduction in site development standards or a modification of zoning code requirements or this section. The c
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
ed to, a reduction in setback and square footage (e)
)oN to co
in th
the Health and Safety Code, including, but not limitart
requirements and in the ratio of vehicular parking spaces that would otherwise be required PraP
(2) Approval of mixed use zoning in conjunction with the housing project if commercial, office, (fl An applicant
industrial, or other land uses will reduce the cost of the housing development and if the commercial, apartments propose
incentives were rc
office,industrial,or other land uses are compatible witproject
ci� project be and the existing or planned (Added by Stats.19
development in the area where the proposed housing p j
(3) Other regulatory incentives or concessions proposed by the developer or the city, county, or city
and county which result in identifiable cost reductions. Condominium emi.
This subdivision does not limit or require the provision of direct financial incentives for the housing CJ.S.Estates 41 1
development,including the provision of publicly owned land,by the city,county,or city and county,or the
waiver of fees or dedication requirements.
(a If a developer agrees to construct both 20 percent of the total units for lower income households and § 65916. Di f.
10 percent of the total units for very low income households,the developer is entitled-to only one density term c
bonus and at least one additional concession or incentive identified in Section
more than onedensity sbction
grant although the city, city and county, or county may,at its discretion,g
(Amended by Stats.1983, c. 634, § 1; S=.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),1 64.)
Historical and Statutory Notes 1. In general
1989 Legislation The granting of a d.
1983 Legislation local ordinance pror
Operative effect of Stats-1994,a 1333, see note under Application of St2ts.1989, t 842 to charter cities• see financial ordinance
Cir.C.4 513. Historical Note under§ 60913.4. Ops.Atty.Gem 370,4-:
2. Term of availabi
Notes of Decisions Cities and counties
Inc,v.City of Oceanside(App.
4 Dist 1994) use restriction prod
Construction with other law 2 of San Diego,
33 CaLRptr2d 137,27 Ca1.App.4th 744.
L Construction with other law § 65917. Legislat
1. In general Municipal growth control initiative,by discouraging dr
blunicipal growth control initiative which conflicted with velopers ifom proposing housing qualified for density In enacting this
state statutes designed to promote construction of low bonuses,impermissibly conflicted with state and city bo-
income housing,by encouraging developers to build larger nus law. Building Industry Assn of San Diego,Ina v offered by the city,
developments with more design and other amenities,was City of Oceanside(App.4 Due 1994)83 CaLRptr2d 13T, economic feasibilit%
y
invalid as of date of its adoption Building Industry Asan 27 CaLApp.4th 744, an airreement bdensity bonus or a
§ 65915.5. Conversion of apartments to condominium project; eligibility; procedure (Amended by Stat
(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 Willies of low
or moderate income as defined in Section 50093 of the Health and Safety Code,or 15 percent of the total 1989 Legislation
ed
units o[the proposed condominium project to lower income households as dem administrative �9e9.5 of Application of Stat
the Health and Safety Code,and agrees to pay for the reasonably necessary Historical Note unde
by a city,county, or city and county pursuant to this section, the city,county.or city and county shall 0 '•la
Additions or changes Indicated by underline; deletions by asterisks
38
N § 65917
iDE GOVER"IENT CODE
either (1) grant a density bonus or (2) provide other incentives of equivaler{j fuiattcial value A city,
the housing or city and county may place such reasonable conditions on the granting of a density bonus or
county,
other incentives of equivalent financial value as it finds appropriate, including, but not limited to,
st 25 Percentconditions which assure continued affordability of units to subsequent purchasers who are persons and
ince and land families of low and moderate income or lower income households.
runty,or city (b) For purposes of this section, "density bonus" means an increase in units of 25 percent'over the
housing units inerts,to be rovided within the e�dsting structure or structures proposed for conversion.
developments number of apartP
(c) For purposes of this section,"other incentives of equivalent fuumcial value"shall not be construed
projects for to require a city, county, or city and county to provide cash transfer payments or other monetary
county. For compensation but may include the reduction or waiver of requirements which the city,county,or city and
-3on individual county might otherwise apply as conditions of conversion approval
submit to a city.
f the housing (d) An applicant for approval to convert opartments.to a uant to this section prior foect r the submittal of any
are located. county, or city and county a preliminary P P P
formal requests for subdivision map approvals. The city,county,or dry and county shall,within 90 days
of receipt of a written proposal,notify the applicant in writing of P e manner in which it out will this section,
Tui 'its or this section. The dry,county,ar dty and count shall establish rocedures for carryinwithg
d by the State wch shall include legislative body approval of the means of compliance with this section
'Division 13 of (e) Nothing this section shall be construed to require a dry,county,or dry and county to approve a
;quare footage rats to condominiums.
-ed. proposal to convert hall be
mercial, office, (f) An applicant shall be ineligible fora density s ng s-ordevelopment
other incentives under this onussection if the
ie commercial, apartments Proposed for conversion constitute a housing development far which a density bonus or other
:ing or planned incentives were provided under Section 65915.
(Added by Stats.1983, c. 634, 1 2.)
county, or city Library References
'or the housing Condominium e-l.
i county,or the
CJ.S.Estates 54 145, 146.
I olds and § 65916. Direct financial contribution to housing developments through participation in costs;
,n,, density term of availability
der this section
density bonus Notes of Decisions
Stats.1990, a 312 37364 and 66916 when they use federal community devel-
Term of availability
opment block gent funds to provide housing affordable to
persons of low and moderate income by(1)purchasing
property from private developer and reconveying it to him
L In general
The granting of a density bonus or an exemption from a for nominal sum,the purchasing
of it to affordable
local ordinance provision does not constitute a direct property allowing
charter ate' see financial contribution' for purposes of this section. 64 housing. 69 Ops.Atty.Geu.223,OCL 15,1986.
opsAtty.Gen.370,4-29-81.
2. Term of availability 30-year
Cities and counties are required to comply
App.a Dist.1994)
use restriction provisions of Government Code section
l discouraging it
4 65917. Legislative intent; developer agreement
,a1i[ied for density In enacting this chapter it is the intent of the Legislature that the density bonus er nth= yttotitthhe
Sante°Inbo
offered by the city,county,or city and county pursuant to this chapter shall eontnbute signifi t1y
33 CaLRptr2d 137, an a°�em�bb a developer a�cordanety of lower income e with Sectiousing in n°sed 65913 5 or housing59developments.locality shall notence of
offera
density bonus or any other meentive that would undermine the intent of this chanter
iuue (Amended by Stats 1989, 842, 14.)
agrees to provide Historical and Statutory Notes
ind families of low
.ercent of the total 1989 Legislation
Section 600cur of
curred Application of Stats.1969, 0 84$ to charter cities,see
rtive costs in Mumrical Nate ander 4 66913.4.
y and county shall
Additions or changes Indicated by underline; deletions by asterisks
39