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HomeMy WebLinkAbout749 - Ordinances ORDINANCE NO. 749 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, REVISING REGULATIONS APPLICABLE TO THE GRANTING OF DENSITY BONUSES AND RELATED INCENTIVES, AND AMENDING TITLE 17 (THE DEVELOPMENT CODE) OF THE RANCHO CUCAMONGA MUNICIPAL CODE. A. RECITALS. (i) Government Code Section 65915 requires each City to adopt an ordinance that specifies how residential density bonuses and related incentives shall be granted. The purpose of this Ordinance is to amend the City's Development Code and adopt those procedures necessary in order to comply with Section 65915. (ii) On September 14, 2005, the Planning Commission of the City of Rancho Cucamonga conducted and concluded a duly noticed public hearing concerning the Development Code amendments contained herein, as required by law. At the conclusion of the hearing, the Planning Commission recommended adoption of said amendments. (iii) On October 19, 2005, the City Council of the City of Rancho Cucamonga conducted and concluded a duly noticed public hearing concerning the Development Code amendments contained herein as required by law. (iv) All legal prerequisites to the adoption of this Ordinance have occurred. B. ORDINANCE. NOW, THEREFORE, the City Council hereby ordains as follows: SECTION 1: The facts set forth in the Recitals, Part A of this Ordinance, are true and correct. SECTION 2: The provisions of this Ordinance and the Development Code amendments contained herein have been reviewed and considered by the City Council in accordance with the provisions of the California Environmental Quality Act, as amended, and the Guidelines promulgated thereunder. The City Council finds that this Ordinance and said Development Code amendments are exempt from the requirements of the California Environmental Quality Act pursuant to the provisions of Section 15061(b)(3) of the Guidelines. Ordinance No. 749 Page 2 of 14 SECTION 3: Chapter 17.40 of Title 17 of the Rancho Cucamonga Municipal Code is hereby repealed provided, however, that such repeal shall not affect or excuse any violation of said chapter occurring prior to the effective date of this Ordinance. SECTION 4: A new Chapter 17.40 is hereby added to Title 17 of the Rancho Cucamonga Municipal Code to read as follows: Chapter 17.40 AFFORDABLE HOUSING INCENTIVES/DENSITY BONUS PROVISIONS Sections: 17.40.010 17.40.020 17.40.030 17.40.040 17.40.050 17.40.060 17.40.070 17.40.080 17.40.090 17.40.010 Purpose. Purpose. Definitions. Implementation. Types of bonuses and incentives allowed. Requirements for projects with affordable units. Development standards. Processing of bonus requests. Density bonus housing agreement. Changes in State delnsity bonus laws. The purpose of this chapter is to provide incentives for the production of housing for very low income, lower income, moderate income, and senior households in accordance with Government Code Sections 65915-65918. 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 as described in Government Code Section 65915 that may 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 ill addition to a density bonus. AFFORDABLE RENT: Monthly housing expenses, including a reasonable allowance for utilities, for rental target units reserved for very low, lower- or moderate- income households, not exceeding the following calculations: Ordinance No. 749 Page 3 of 14 1. Very Low-Income. Unless otherwise provided by law, households at fifty percent of the area median income, adjusted for household size, multiplied by thirty percent and divided by twelve; 2. Lower-Income. Unless otherwise provided by law, households at eighty percent of the area median income, adjusted for household size, multiplied by thirty percent and divided by twelve. 3. Moderate-Income. Unless otherwise provided by law, households at 120 percent of the area median income, adjusted for household size, multiplied by thirty percent and divided by twelve. AFFORDABLE SALES PRICE: A sales price at which lower or very low 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 those percentages above the otherwise maximum residential density, specified in this chapter. 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. DENSITY BONUS UNITS: Those residential units granted pursuant to the provisions of this chapter, which exceed the maximum residential density for the development site. H HOUSING COST: The sum of actual or projected monthly payments for all of the following 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 utilities. HOUSING DEVELOPMENT: Construction projects consisting of five or more residential units or lots, including single-family and multi-family, that are proposed to be constructed pursuant to this chapter. L LOWER INCOME HOUSEHOLD: Household whose income does not exceed the lower income limits applicable to San Bernardino County, as published and periodically updated by the State Department of Housing and Community Development pursuant to Health and Safety Code Section 50079.5. 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 of a housing development is deemed complete by the City, excluding the additional units permitted by this chapter. Ordinance No. 749 Page 4 of 14 MODERATE INCOME HOUSEHOLD: Household whose income does not exceed the moderate income limits applicable to San Bernardino County, as published and periodically updated by the State Department of Housing and Community Development pursuant to Health and Safety Code Section 50093. N NON-RESTRICTED UNITS: All units within a housing development excluding the target units. S SENIOR CITIZEN HOUSING: A housing development consistent with the California Fair Employment and Housing Act, that 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 Civil Code Section 51.3. T TARGET UNIT: reserved for sale or rent households. A dwelling unit within a housing development, which will be to, and affordable to, very low-, lower- or moderate- income V VERY LOW INCOME HOUSEHOLD: Household whose income does not exceed the very low income limits applicable to San Bernardino County, as published and periodically updated by the State Department of Housing and Community Development pursuant to Health and Safety Code Section 50105. 17.40.030 Implementation. A. The City shall grant a density bonus and additional incentives to an applicant who agrees to provide the following Target Units: 1. Lower Income Units. Designate at least ten percent of the total units of a housing development, or such other percentage provided by law, as target units affordable to lower income households; or 2. Very Low Income Units. Designate at least five percent of the total units of a housing development, or such other percentage provided by law, as target units affordable to very low income households. 3. Moderate Inoome Condominium or Planned Development Units. Designate at least ten percent of the total units of a condominium project, as defined in Civil Code Section 1351 (f), or planned development as defined in Civil Code Section 1351 (k), or such other percentage provided by law, as target units affordable to moderate income households. 4. Any Senior Housing Development. 5. Donation of land pursuant to Government Code Section 65915(h). B. 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 computed as follows: Ordinance No. 749 Page 5 of 14 1. Lower Income Household. The maximum allowable residential density for the site shall be increased by twenty percent provided, however, that for each one percent increase above ten percent in the percentage of units affordable to lower income households, the density bonus shall be increased by 1.5 percent up to a maximum of thirty-five percent. 2. Very Low Income Household. The maximum allowable residential density for the site shall be increased by twenty percent provided, however, that for each one percent increase above five percent in the percentage of units affordable to very low income households, the density bonus shall be increased by 2.5 percent up to a maximum of thirty-five percent. 3. Moderate Income Condominium or Planned Development. The maximum allowable residential density for the site shall be increased by five percent provided, however, that for each one percent increase above ten percent of the percentage of units affordable to moderate income households, the density bonus shall be increased by one percent up to a maximum of thirty-five percent. 4. Senior Housing Development. The maximum allowable residential density for the site shall be increased by twenty percent. 5. Certain Donations of Land. When an applicant for a tentative subdivision map, parcel map, or other residential development approval donates land to the city that satisfies the requirements of Government Code Section 65915(h), and complies with all procedural requirements of that subsection, including recordation of a deed restriction, then the maximum allowable residential density for the site shall be increased by fifteen percent provided, however, that for each one percent increase above the minimum percentage of land required to be donated pursuant to Government Code Section 65915(h), the density bonus shall be increased by one percent up to a maximum of thirty-five percent. This increase shall be in addition to any increase required by Section 17.40.030A of this Chapter, up to a maximum combined density increase of thirty-five percent if an applicant seeks both the increase required by this subsection and by Section 17.40.030A. All density calculations resulting in fractional units shall be rounded up to the next whole number. The density bonus shall not be included when determining the percentage of target units. When calculating the required number of target units, any resulting fraction of units shall be deleted. C. Number of Incentives. 1. One density bonus and one incentive shall be provided to a developer who agrees to construct at least ten percent of the total units for lower income households, five percent of the total units for very low income households, or ten percent of units in a condominium or planned development for moderate income households. A density bonus and two incentives shall be provided to a developer who agrees to construct at least twenty percent of the total units for lower income households, ten percent of the total units for very low income households, or twenty percent of units in a condominium or planned development for moderate Ordinance No. 749 Page 6 of 14 income households. A density bonus and three incentives shall be provided to a developer who agrees to construct at least thirty percent of the total units for lower income households, fifteen percent of the total units for very low income households, or thirty percent of units in a condominium or planned development for moderate income households. In cases where a density increase of more than the amount specified in Section 17.40.030.B is requested, the density increase, if granted, shall be considered an additional incentive. 2. In cases where the developer agrees to construct a housing development that qualifies for a density bonus pursuant to Section 17.40.030A of this Chapter, that includes a childcare facility as defined in Government Code Section 65915(i)(4), the developer shall be entitled to an additional density bonus that is an amount of square feet of residential space equal to or greater than the amount of square feet in the childcare facility; or an additional incentive described in Section 17.40.040 of this Chapter, that contributes significantly to the economic feasibility of the construction of the childcare facility. Any such childcare facility shall comply with the following: a. The childcare facility shall remain in operation for a period of time that is as long or longer than the period of time during which the density bonus units are required to remain affordable; b. Of the children who attend the childcare facility, the children of very low income households, lower income households, or families of moderate income shall equal a percentage that is equal to or greater than the percentage of dwelling units that are required for very low income households, lower income households, or families of moderate income, pursuant to this chapter. c. Notwithstanding the foregoing, City shall not be required to provide a density bonus or incentive for a childcare facility when it is found, based upon substantial evidence, that the city has adequate childcare facilities. 17.40.040 Types of bonuses and incentives allowed. A. Density Bonus. The density bonus allowed by this chapter shall consist of those density increases specified in Section 17.40.030, above the maximum residential density 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 developments, upon the written request of a developer unless the City makes the written findings set forth in Government Code Section 65915(d)(1). 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. Ordinance No. 749 Page 7 of 14 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 the findings required by Government Code Section 65915(d)(1): 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 Health and Safety Code. These may include, but are not limited to, one or more of the following: . Reduced minimum lot sizes and/or dimensions. . Reduced minimum lot setbacks. . Reduced minimum outdoor and/or private outdoor open space. . Increased maximum lot coverage. . Increased maximum building height. . Reduced on-site parking standards. . Reduced minimum building separation requirements. . Other site or construction conditions applicable to a residential development. b. Mixed use zoning to 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 if 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 with the General Plan. c. Another regulatory incentive or concession proposed by the applicant and agreed to by the City, that results in identifiable, financially sufficient, and actual 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 or a grant to subsidize or provide low interest financing for on or off-site improvements, land, or construction costs. d. A density bonus of more than thirty-five percent. e. Waived, reduced or deferred plan check, construction permit and/or development impact fees (e.g., capital facilities, park, traffic, etc.). 2. Requirements. a. Economic feasibility. Any development incentive granted shall contribute to the economic feasibility of providing the target units. Ordinance No. 749 Page 8 of 14 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 all units, including the density bonus units. d. Costs. Projected costs: i. Shall not inc~ude 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). ii. 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. 17.40.050 Requirements for density bonus projects. A. The entry into and execution of the Density Bonus Housing Agreement shall be a condition of any application for a 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 a~lreement shall be recorded at the applicant's cost as a restriction running with the land on the parcel or parcels on which the target units will be constructed. The owner's obligation to maintain units as affordable housing shall be evidenced in the Density Bonus Housing Agreement. The agreement shall indicate the household type, number, location, size, and construction scheduling of all affordable units and any other information required by the City to determine the applicant's compliance with this chapter B. Target units shall remain restricted and affordable to the designated group for a period of thirty years (or a longer period of time if required by the construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy program), or otherwise as provided by law. C. 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: r--~~.----~ --- Hotel) r% of 1 person ISRO (residential lunit . IStudio 11 person 11 bedroom . -_.-_. I2personsH 12 bedroom . . .. I3lJersons . __. _m__ 13 bedroom 14 persons ,14 bedroom 16 persons I Ordinance No. 749 Page 9 of 14 D. 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. E. Those units targeted for very low 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 size. F. An applicant shall agree that the initial occupants of the moderate-income units in the condominium project or in the planned development are persons and families of moderate income, as defined in Health and Safety Code Section 50093. Upon resale, the seller of the unit shall retain the value of any improvements, the down payment, and the seller's proportionate share of appreciation. The City shall recapture its proportionate share of appreciation, which shall then be used within three years for any of the purposes described in Health and Safety Code Section 33334.2(e), that promote homeownership. For purposes of this subsection, the City's proportionate share of appreciation shall be equal to the percentage by which the initial sale price to the moderate-income household was less than the fair market value of the home at the time of initial sale. G. The owner shall submit annually, and within thirty days of occupancy of a target rental unit, a certificate of compliance, which shall include the name, address, and income of each tenant occupying the target unit. H. The owner shall maintain and keep on file annual sworn and notarized income statements and current tax returns for all tenants occupying the target rental units. I. 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. J. 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. K. The City may establish fees associated with the setting up and monitoring of target units. L. All for-sale target units shall be occupied by their purchasers: no renting or subleasing shall be permitted. 17.40.060 Development standards. A. Target units shall be constructed concurrently with non-restricted units unless both the City and the applicant agree within the Density Bonus Housing Agreement to an alternative schedule for development. B. Target units shall 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 shall 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. Ordinance No. 749 Page 10 of 14 The design and appearance of the target units shall be compatible with the design of the total housing development. All housing developments shall comply with all applicable development standards, except those standards, which may be modified as provided by this chapter. Deviations from these provisions may only be permitted as part of an approved Density Bonus Housing Agreement. C. 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 alternative 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. D. Special parking requirements. Upon request of the developer of a housing development qualifying for a density bonus pursuant to this chapter, the City shall permit vehicular parking ratios, inclusive of handicapped and guest parking, in accordance with the following standards: 1. 0-1 bedrooms: One on-site parking space. 2. 2-3 bedrooms: Two on-site parking spaces. 3. 4 or more bedrooms: Two and one-half parking spaces. If the total number of parking spaces required for a housing development is other than a whole number, the number shall be rounded up to the next whole number. For purposes of this subsection, a housing development may provide 'on-site parking' through tandem parking or uncovered parking, but not through on-street parking. 17.40.070 Processing of density 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 Section 65920, et seq., unless and until the City Council has given preliminary approval of the form and content of a Density Bonus Housing Agl'eement, which complies with the provisions of this chapter. The process for obtaining prelirninary 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 of a 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; Ordinance No. 749 Page 11 of 14 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. 1. Within ninety 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 procedures for compliance with this chapter. 2. If additional incentives are requested, the City Planner shall inform the applicant that the requested additional incentives shall or shall not be recommended for consideration with the proposed housing development, or that alternative or modified additional incentives shall be recommended for consideration in lieu of the requested additional incentives. If the City Planner recommends alternative or modified incentives, the recommendation shall establish how the aiternative or modified incentives can be expected to have an equivalent affordability effect as the requested incentives. 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 Planning Commission for review and the City Council for final approval. B. Following execution of the agreement by the applicant and the City, the completed agreement, or memorandum thereof, shall be 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 buiiding 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. C. At a minimum, the Agreement shall include the following: 1. 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 thirty years; Ordinance No. 749 Page 12 of 14 5. A schedule for completion and occupancy of target units; 6. A description of any additional incentive being provided by the 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. D. In the case of for-sale housing developments, the agreement shall provide for the following conditions governing the initial sale and use of target units during the applicable use restriction period: 1. Target units shall, upon initial sale, be sold to and occupied by eligible very low, lower income, or, in the case of a condominium or planned development, moderate income households at an affordable sales price and housing cost, or to qualified senior citizen residents (I.e., maintained as senior citizen housing). 2. 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 chapter 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 compliance with this chapter and the State density bonus law. E. 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. 17.40.090 Changes in State density bonus laws. It is the intent of the City Council that the provisions of this chapter shall be interpreted so as to fulfill the requirements of Government Code Section 65915 et seq., notwithstanding changes in State laws revising percentages, numerical thresholds and/or other standards applicable to the granting of density bonuses or related incentives that may occur after the effective date of this chapter. Accordingly, it is the further intent of the City Council that any such changed percentages, numerical thresholds or other standards shall be deemed to supersede and govern any conflicting percentages, numerical thresholds or other standards contained in this chapter, to the maximum extent permitted by law. Ordinance No. 749 Page 13 of 14 SECTION 5: Severabilitv. The City Council declares that should any provision, section, paragraph, sentence, or word of this Ordinance be rendered or declared invalid by any final court action in a court of competent jurisdiction, or by reason of any preemptive legislation, the remaining provisions, sections, paragraphs, sentences and words of this Ordinance shall remain in full force and effect. SECTION 6: The City Clerk shall certify to the adoption of this Ordinance. Please see the following page for formal adoption, certification and signatures Ordinance No. 749 Page 14 of 14 PASSED, APPROVED, AI\ID ADOPTED this 2,d day of November 2005. AYES: Alexander, Gutierrez, Michael, Spagnolo, Williams NOES: None ABSENT: None ABSTAINED: None ~- ( c..-- ATTEST: I, DEBRA 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 19th day of September 2005, and was passed at a Regular Meeting of the City Council of the City of Rancho Cucamonga held on the 2,d day November 2005. Executed this 3rd day of November 2005, at Rancho Cucamonga, California. ~