HomeMy WebLinkAbout689 - Ordinances ORDINANCE NO. 689
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
RANCHO CUCAMONGA, CALIFORNIA, APPROVING
ENVIRONMENTAL ASSESSMENT AND DEVELOPMENT CODE
AMENDMENT DRC2002-00443, THE ADDITION OF AFFORDABLE
HOUSING INCENTIVES/DENSITY BONUS PROVISIONS,
CHAPTER '17.40 OF THE RANCHO CUCAMONGA
DEVELOPMENT CODE, TO PROVIDE FOR THE INCLUSION OF
DENSITY BONUS INCENTIVES FOR THE DEVELOPMENT OF
AFFORDABLE HOUSING AND MAKING FINDINGS IN SUPPORT
THEREOF.
A. RECITALS.
1. On the 10th day of July 2002, the Planning Commission of the City of Rancho
Cucamonga conducted a duly noticed public hearing with respect to the above-
referenced Development Code Amendment, and following the conclusion
thereof, adopted its Resolution No. 02-66, recommending that the City Council of
the City of Rancho Cucamonga adopt said amendment.
2. On the 2nd day of October 2002, the City Council of the City of Rancho
Cucamonga conducted a duly noticed public hearing on the amendment to the
Development Code.
· 3. All legal prerequ!sites prior to the adoption ofthis Ordinance have occurred.
B. ORDINANCE.
The City Council of the City of Rancho Cucamonga does ordain as follows:
SECTION 1: This City Council hereby specifically finds that ail of the facts set forth
in the Recitals, Part A, of this Ordinance are true and correct.
SECTION 2: This City Council hereby finds and determines that the subject
amendment identified in this Ordinance is exempt from the
requirements of the California Environmental QualityAct of 1970, as
amended, and the Guidelines promulgated thereunder, pursuantto
Section 15061(b)(3) of Division 6 Title 14 of the California Code of
Regulations.
SECTION 3: Section 17.40 - Affordable Housing Incentives/Density Bonus
Provisions, of the Development Code hereby is established to read,
in words and figures, as written below:
Ordinance No. 689
Page 2 of 12
"17. 40.010 - Purpose
The purpose of this chapter is to provide incentives for the production of
housing for very Iow, lower income, and senior households in accordance
with Sections 65915 and 65917 of the California Government Code. In
enacting this chapter, it is the intent of the City to facilitate the development
of affordable housing and to implement the goals, objectives, and policies of
the Housing Element of the City's General Plan.
17.40.020 - Definitions
Whenever the following terms are used in this chapter, they shall have the
meanings established by this section:
A ADDITIONAL INCENTIVE: A regulatory concession (Government
Code, subsections 65915 (d) and (h)) to include, but not be limited to,
the reduction of site development standards or zoning code
requirements, approval of mixed-use zoning in conjunction with the
housing development or any other regulatory incentive, which would
result in identifiable cost avoidance or reductions that are offered in
addition to a density bonus.
AFFORDABLE RENT: Monthly housing expenses, including a
reasonable allowance for utilities, for rental target units reserved for
very Iow or lower income households, not exceeding the following
calculations:
1. Very Low Income, Households at 50% of the area median
income, adjusted for household size, multiplied by 30%
and divided by 12;
2. Lower Income. Households at 60% of the area median
income, adjusted for household size, multiplied by 30%
and divided by 12.
AFFORDABLE SALES PRICE: A sales price at which lower or very
Iow income households can qualify for the purchase of target units,
calculated on the basis of underwriting standards of mortgage
financing available for the housing development.
D DENSITY BONUS: A density increase of up to 25% ever the
otherwise maximum residential density.
DENSITY BONUS HOUSING AGREEMENT: A legally binding
agreement between a developer of a housing development and the
City, which ensures that the requirements of this chapter and State
density bonus law are satisfied. The agreement, shall establish,
among other things, the number of target units, their size, location,
terms and conditions of affordability and production schedule.
DENSITYBONUS UNITS: Those residential units grantedpursuant to
the provisions of this chapter, which exceed the otherwise maximum
residential density for the development site.
Ordinance No. 689
Page 3 of 12
H HOUSING COST: The sum of actual orprojectedmonth/ypayments
fora//of the fo/lowing associated with for-sale target units: principal
and interest on a mortgage loan, including any loan insurance fees,
property taxes and assessments, fire and casualty insurance,
property maintenance and repairs, homeowner association fees, and
a reasonable allowance for ut#ities.
HOUSING DEVELOPMENT: Construction projects consisting of 5 or
more residential units, including sing/e-family and multifamily, that are
proposed to be constructed pursuant to this chapter.
L LOWER INCOME HOUSEHOLD: Households whose income does not
exceed the Iower income limits applicable to San Bernardino County,
as published and periodically updated by the State Department of
Housing and Community Development pursuant to Section 50079.5
of the California Health and Safety Code.
M MAXIMUM RESIDENTIAL DENSITY: The maximum number of
residential units permitted by the City's General Plan Land Use
element and Development Code applicable to the subject property at
the time an application for the construction ora housing development
is deemed complete by the City, excluding the provisions of this
chapter.
N NON-RESTRICTED UNIT: All units within a housing development
excluding the target units.
Q QUALIFIED RESIDENT: Senior citizens or other persons eligible to
reside in senior citizen housing.
S SENIOR CITIZEN HOUSING: A housing development consistent with
the California Fair Employment and Housing Act, which has been
"designed to meet the physical and social needs of senior citizens,"
and which otherwise qualifies as "housing for older persons" as that
phrase is used in the Federal Fair Housing Amendments Act of 1988
and its implementing regulations, and as that phrase is used in
California Civil Code Sections 51.2 and 51.3.
T TARGET UNIT: A dwelling unit within a housing development, which
will be reserved for sale or rent to, and affordable to, very Iow or
lower income households or qualifying residents.
v VERY LOWINCOME HOUSEHOLD: Households whose income does
not exceed the very low income limits applicable to San Bemardino
County, as published and periodically updated by the State
Department of Housing and Community Development pursuant to
Section 50105 of the California Health and Safety Code.
Ordinance No. 689
Page 4 of 12
17.40.030 - Implementation
A. The City shall grant either a density bonus or a density bonus with an
additional incentive to an applicant who agrees to provide the follov~ng
target units as part ora housing development:
I. Lower Income Household. At least 20% of the total units of
the housing development as target units affordable to lower
income households; or
2. Very Low Income Household. At least 10% of the total units of
the housing development as target units affordable to very
Iow income households; or
3. Senior Citizen Housing. At least 50% of the total units of the
housing development as target units affordable to qualifying
residents.
In determining the number of density bonus units to be granted pursuant
to this section, the maximum allowable residential density for the site
shall be multiplied by 25%. When calculating the number of permitted
density bonus units, any resulting fractions of units shall be deleted.
B. In determining the number of target units to be provided pursuant to this
section, the maximum residential density shall be:
1. Multiplied by 10% where very Iow income households are
targeted; or
2. Multiplied by 20% where lower income households are
targeted.
The density bonus units shall not be included when determining the total number of
targetunitsinthehousingdevelopment. Whencalculatingtherequirednumberoftarget
units, any resulting fraction of units shaft be deleted.
C. Limitations and Exceptions.
I. In cases where a density increase of less than 25% is
requested, no reduction will be allowed in the number of
target units required. In cases where a density increase ol~
more than 25% is requested, the requested density increase,
if granted, shaft be considered an additional incentive.
z In cases where the developer agrees to construct more than
20% of the total units for lower income households, and 10%
of the total units for very Iow income households, the
developer shall be entitled to only one density bonus and an
additional incentive. Similarly, an applicant who agrees to
construct senior citizen housing with 20% or 10% of the units
reserved for lower or very Iow income households,
respectively, is only entitled to one density bonus and an
additional incentive. The City may, however, grant multiple
additional incentives to facilitate the inclusion of more target
units than are required by this chapter.
Ordinance No. 689
Page 5 of 12
17.40.040 - Types of Bonuses and Incentives Allowed
A. Density Bonus. The density bonus altowed by this chapter sha/I consist
of at least a 25% increase in the maximum density allowed by the zoning
district and General Plan designation applicable to the site as of the date
of the project land use permit application. A single development project
shall not be granted more than one density bonus in compliance with this
chapter.
The City shall provide a density bonus and an additional incentive for
qualified housing developments, upon the wdtten request ora developer,
unless the City makes a written finding that the additional incentive is not
necessary to make the housing development economically feasible and
to accommodate a density bonus.
The development incentive granted shall contribute significantly to the
economic feasibility of providing the target units. Any applicant seeking a
waiver or modification of development or zoning standards shall show
that such waiver or modification is necessary to make the housing
development economically feasible. This requirement may be satisfied
by reference to applicable sections of the Housing Element of the City's
General Plan.
B. Other Incentives. If requested by the applicant, a qualifying project shall
be entitled to at least one of the following incentives, unless the City
makes a written finding that the additional incentive is not necessary to
make the housing development economically feasible:
1. Types of Incentives. The allocation of an additional incentive
shall be determined on a case-by-case basis. The additional
incentive may include, but is not limited to, any of the
following:
a. A reduction in site development standards or a
modification of the requirements of this Development
Code, which exceed the minimum building standards
provided in Part 2.5 (commencing with Section 18901) of
Division 13 of the California Health and Safety Code.
These may include, but are not limited to, one or more of
the following:
t) Reduced minimum lot sizes and/or dimensions.
2) Reduced minimum lot setbacks.
3) Reduced minimum outdoor and/or private outdoor
open space.
4) Increased maximum lot coverage.
5) Increased maximum building height.
6) Reduced on-site parking standards.
7) Reduced minimum building separation requirements.
a) Other.
Ordinance No. 689
Page 6 of 12
b. Allow the housing development to include nonresidential
uses and/or allow the housing development within a
nonresidential zone. Approval of mixed use activities in
conjunction with the housing development ff other land
uses will reduce the cost of the housing development,
and the other land uses are compatible with the housing
development and the existing or planned development in
the area, and is consistent vcth the General Plan.
c. Another regulatory incentive or concession proposed by
the applicant and agreed to by the City, which results in
identifiable cost reductions or avoidance.
d. A density bonus of more than 25%.
e. Waived, reduced, or deferred plan check, construction
permit, and/or development impact fees (e.g., capital
facilities, park, traffic, etc.).
¢. Other regulatory incentives proposed by the applicant or
the City, which result in identifiable cost reductions.
Permissible incentives include direct financial aid (e.g.,
redevelopment set-aside, Community Development Block
Grant (CDBG) funding) in the form of a loan ora grant to
subsidize or provide Iow interest financing for on or off-
site improvements, land, or construction costs.
2. Requirements.
a. Economic feasibility. Any development incentive granted
shaft contribute to the economic feasibility of providing the
target units.
b. Waivers or modifications. An applicant seeking a waiver
or modification of development or zoning standards shall
show that the waiver or modification is necessary to make
the housing development economically feasible assuming
a reasonable rate of return (e.g., at a minimum, an
application shall include itemized accounting of projected
costs and revenues of the development).
c. Revenue. Project revenues shall include moneys from the
sale or rental of afl units, including the density bonus
units.
d. Costs. Project costs:
1) Shall not include the "lost opportunity" cost of the
target units (e.g., the amount that would have been
generated had the target units been rented or sold at
market rate).
2) May include items that are required solely because of
the inclusion of the density bonus units and would not
have been required without the units.
Ordinance No. 689
Page 7 of 12
e. Financial Assistance. ff financial assistance is required,
the applicant shall submit a project financial report (pro
forma) to allow the City to evaluate the financial need for
the additionalincentive. The Citymayretain a consultant
to review the financial report. The cost of the consultant
shall be the responsibility of the applicant.
17.40.050 - Requirements for Projects with Affordable Units
A. The owners obligation to maintain units as affordable housing shall be
evidenced by the Density Bonus Housing Agreement, which shall be
recorded as a deed restriction running with the land and be binding upon
all successors-in-interest.
B. Those units targeted for lower income households shall be affordable at
a rent that does not exceed current Housing and Urban Development
(HUD) income limits for lower income households for the County,
adjusted for household size.
C. Those units targeted for verylow-income households shall be affordable
at a rent that does not exceed current HUD income limits for very low-
income households for the County, adjusted for household si3~.
D. The owner shall submit annually and within 30 days of occupancy of a
target unit, a certificate of compliance, which shall include the name,
address, and income of each tenant occupying the target unit.
E. The owner shall maintain and keep on file annual sworn and notarized
income statements and current tax returns for all tenants occupying the
target units.
F. The owner shall provide to the City any additional information required by
the City to insure the long-term affordability of the target units by eligible
households.
G. The City shall have the right to inspect the owner's project-related
records at any reasonable time and shall be entitled to audit the owner's
records once a year.
H. The City may establish fees associated with the setting up and
monitoring of target units.
I. Ail target units for sale shall be occupied by their purchasers; no renting
or sub/easing shall be permitted.
17.40.060 - Development Standards
A. Targetunitsshouldbeconstructedconcurrentlywithnon-restrictedunits
un/ess both the City and the applicant agree within the Density Bonus
Housing Agreement to an alternative schedule for deve/oprnent.
Ordinance No. 689
Page 8 of 12
B. Target units shall remain restricted and affordable to the designated
group for a period of 30 years (or a longer period of time ff required by
the construction or mortgage financing assistance program, mortgage
insurance program, or rental subsidy program), when both a density
bonus and an additional incentive are granted.
{2. Target units shall remain restricted and affordable to the designated
group for a period of 10 years when only a density bonus is granted and
no additional incentive is granted.
D. In determining the maximum affordable rent or affordable sales price of
target units the following household and unit size assumptions shall be
used, unless the housing development is subject to different assumptions
imposed by other governmental regulations:
SRO (residential hotel) unit 75% of I person
Studio 1 person
I bedroom 2 persons
2 bedroom 3 persons
3 bedroom 4 persons
4 bedroom 6 persons
E.. Target units should be built on-site wherever possible and, when
practical, be dispersed within the housing development. Where feasible,
the number of bedrooms of the target units should be equivalent to the
bedroom mix of the non-target units of the housing development, except
that the developer may include a higher proportion of target units with
more bedrooms. The design and appearance of the target units shall be
compatible with the design of the total housing development. Afl housing
developments shall comply with all applicable development standards,
except those that standards, which may be modified as provided by this
chapter.
~=. Circumstances may arise in which the public interest would be served by
allowing some or all of the target units associated with one housing
development to be produced and operated at an altemative development
site. Where the applicant and the City form an agreement, the resulting
linked developments shall be considered a single-housing development
for purposes of this chapter. Under these circumstances, the applicant
shall be subject to the same requirements of this chapter for the target
units to be provided on the alternative site.
G. The entry into and execution of Density Bonus Housing Agreement shall
be a condition of any application fora discretionary planning permit (e.g.,
tract maps, parcel maps, site plans, planned development, or conditional
use permits) for a housing development proposed pursuant to this
chapter. The agreement shall be recorded at the applicant's cost as a
restriction on the parcel or parcels on which the target units will be
constructed.
Ordinance No. 689
Page 9 of 12
H. A Density Bonus Housing Agreement shall be made between the
applicant and the City, which indicates the household type, number,
location, size, and construction scheduling of all affordable units and any
information required by the City to determine the applicant's compliance
with this chapter.
17.40.070- Processing of Bonus Requests
An application for a Density Bonus Housing Agreement pursuant to this
chapter shall be processed as part of the application for a housing
development. An application for a housing development shall not be
determined "complete" for purposes of Government Code Sections 65920 et
seq., unless and until the City Council has given preliminary approval of the
form and content ora Density Bonus Housing Agreement, which complies
with the provisions of this chapter. The process for obtaining preliminary
approval of the Density Bonus Housing Agreement, shall be as follows:
A. Filing. An applicant proposing a housing development pursuant to this
chapter shall submit an application for a Density Bonus Housing
Agreement as part of the submittal of any formal request for approval ora
housing development. The application, whether a pre-application or a
formal application, shall include:
1. A brief description of the proposed housing development,
including the total number of units, target units, and density
bonus units proposed;
2. The zoning and General Plan designations and Assessor's
Parcel Number(s) of the project site;
3. A Vicinity Map and Preliminary Site Plan, drawn to scale,
including building footprints, driveways, and parking layout;
and
4. If an additional incentive is requested, a description of why
the additional incentive is necessary to provide the target
units.
B. Review of Density Bonus Request. Within 90 days of receipt of the
application for a Density Bonus Housing Agreement and a housing
development, the City shall provide to an applicant a letter, which
identifies project issues of concern, and the proceduresfor compliance
with this chapter.
C. Additional lncentives. The City Planner shall inform the applicant that the
requested additional incentives shall be recommended for consideration
with the proposed housing development, or that alternative or modified
additional incentives shall be recommended for consideration in fieu of
the requested additional incentives. If the City Planner recommends
alternative or modified incentives, the recommendation shall establish
how the alternative or modified incentives can be expected to have an
equivalent affordability effect as the requested incentives.
Ordinance No. 689
Page 10 of 12
17.40.080 - Density Bonus Housing Agreement
A. The terms of the draft Density Bonus Housing Agreement (the
"Agreement") shall be reviewed and revised as appropriate by the City
Planner and the City Attorney who shall formulate a recommendation to
the City Council for final approval.
B. The Agreement shall be submitted to the Planning Commission for its'
recommendation and submitted to the City Council for final approval.
C. Following execution of the Agreement by the applicant and the City, the
completedAgreement, ormemorandum thereof, shallbe recorded. The
conditions contained in the Agreement shall be filed and recorded on the
parcel or parcels designated for the construction of target units as a
condition of final map approval, or, where a map is not being processed,
prior to issuance of building permits for such parcels or units. The
Agreement shall be binding upon all future owners and successors in
interest for this property, which is the subject of the housing development
application.
D. At a minimum, the Agreement shall include the followfng:
I. The total number of units proposed within the housing
development, including the number of target units;
2. A description of the household income group to be
accommodated by the housing development, and the
standards for determining the corresponding affordable rent
or affordable sales price and housing cost;
3. The location, unit sizes (square feet), and number of
bedrooms of target units;
4. Tenure of use restrictions for target units of at least l O or 30
years;
5. A schedule for completion and occupancy of target units;
6. A description ofthe additional incentive being provided bythe
City;
7. A description of remedies for breach of the Agreement by
either party (the City may identify tenants or qualified
purchasers as third party beneficiaries under the agreement);
and
8. Other provisions to ensure implementation and compliance
with this chapter.
E. In the case of for-sale housing developments, the Agreement shall
provide for the follov~ng conditions governing the initial sale and use of
target units during the applicable use restriction period:
~. Target units shall, upon initial sale, be sold to eligible very low
or lower income households at an affordable sales price and
housing cost, or to qualified residents (i.e., maintained as
senior citizen housing).
Ordinance No. 689
Page 11 of 12
2. Target units shall be initially owner-occupied by eligible very
Iow or lower income households, or by qualified residents in
the case of senior citizen housing.
3. The initial purchaser of each target unit shall execute an
instrument or agreement, approved by the City Attorney,
restricting the sale of the target unit in accordance with this
ordinance during the applicable use restriction period. Such
instrument or agreement shall be recorded against the parcel
containing the target unit and shall contain provisions as the
City may require to ensure continued compllancewith this
chapter and the State density bonus law.
F. In the case of rental housing developments, the Agreement shall provide
for the following conditions governing the use of target units during the
use restriction period:
1. The rules and procedures for qualifying tenants, establishing
affordable rent, filling vacancies, and the proper management
and maintenance of target units for qualified tenants;
2. Provisions requiring owners to verify tenant incomes and
maintain books and records to demonstrate compliance with
this chapter; and
3. Provisions requiring owners to submit an annual report to the
City, which includes the name, address, and income of each
person occupying target units, and which identifies the
bedroom size and monthly rent or cost of each target unit."
SECTION 4: If any section, subsection, sentence, clause, phrase, or word of this
Ordinance is, for any reason, deemed or held to be invalid or
unconstitutional by the decision of any court of competent jurisdiction,
or preempted by legislative enactment, such decision or legislation
shall not affect the validity of the remaining portions of this
Ordinance. The City Council of the City of Rancho Cucamonga
hereby declares that it would have adopted this Ordinance and each
section, subsection, sentence, clause, phrase, or words thereof,
regardless of the fact that any one or more sections, subsections,
sentences, clauses, phrases, or words might subsequently be
declared invalid or unconstitutional or preempted by subsequent
legislation.
SECTION 5: The City Clerk shall certify to the adoption of this Ordinance and shall
cause the same to be published within 15 days after its passage at
least once in the Inland Valley Daily Bulletin, a newspaper of general
circulation published in the City of Ontario, California, and circulated
in the City of Rancho Cucamonga, California.
Ordinance No. 689
Page 12 of 12
PASSED, APPROVED, AND ADOPTED this 22nd day of October 2002.
AYES: Alexander, Curatalo, Williams
NOES: None
ABSENT: Biane, Dutton
ABSTAINED: None
William J. Ai~~l~~ayor
ATTEST:
bra~J. Ada~, CMC, City Clerk
I, DERRA J. ADAMS, CITY CLERK of the City of Rancho Cucamonga, California, do
hereby certify that the foregoing Ordinance was introduced at a Regular Meeting of the Council of
the City of Rancho Cucamonga held on the 2nd day of October 2002, and was passed at a Special
Meeting of the City Council of the City of Rancho Cucamonga held on the 22nd day of October 2002.
Executed this 23rd day of October 2002, at Rancho Cucamonga, California.