SR-407-000-05 (8)
PCD:AA:AS:JL:TK:F:\CityPlanning\Share\COUNCIL\STRPT\2005\Density Bonus 01.24.06.doc
January 24, 2006 Santa Monica, California
TO: Mayor and Councilmembers
FROM: City Staff
SUBJECT: Introduction and First Reading of an Interim Ordinance Modifying the Density
Bonus Provision of the Zoning Ordinance In Accordance with State Density
Bonus Law
INTRODUCTION
This report recommends that the City Council introduce for first reading an ordinance
modifying the City’s density bonus and affordable housing incentives/concessions to align
local objectives and policies regarding multi-family housing with State law. The proposed
interim ordinance is contained in Attachment A.
BACKGROUND
For some time, Santa Monica has provided incentives for the development of affordable
housing. In general, these incentives have exceeded the requirements of the State law.
Santa Monica currently offers a variety of incentives for housing, including affordable
housing, in various districts throughout the City:
?
In the BSC, C3, C3-C, and CM districts, floor area devoted to residential uses is
discounted fifty percent. In the BCD, C2, C4, and C6 districts, the City offers
increased floor area if at least 30% of the project floor area is residential.
?
In the BSC, C3, C3-C, and C6 districts, the City eliminates the restriction on the
number of stories within the height limit that can be built if the structure contains at
1
least one floor of residential use.
?
In the CM district, there is no limit to the number of stories within the height limit if at
least 50% is residential. In the CP, R2, R3, and R4 districts, there is no limit to the
number of stories within the height limit if the project is affordable housing.
?
The City’s Affordable Housing Production Program in-lieu fees are discounted for
residential development in commercial areas.
?
In the BSC, BCD, C2, C3, C3-C, C4, C5, C6, CM, CP, M1, LMSD, RVC, R2, R3, and
R4 districts, the floor area devoted to residential use is discounted 50% when
determining the threshold for a Development Review Permit.
?
State density bonus projects are eligible to apply for a variance to side yard setback
requirements, to front or rear yard setback requirements, and to parcel coverage
requirements.
On January 1, 2005, Senate Bill 1818 went into effect significantly changing the State’s
density bonus law. Senate Bill 435, which was signed into law on October 4, 2005,
amended SB 1818 with additional language and clarifications. The new provisions, among
other requirements, reduce the number of units that a developer must provide in order to
receive a density bonus and require local jurisdictions to provide three development
incentives/concessions to facilitate the production of housing. These can include
reductions in zoning standards, other development standards, design requirements, mixed-
use zoning, and any other incentive that would reduce costs for the developer. As detailed
in the attached California Chapter of the American Planning Association document, a
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sliding scale is used in the new density bonus law to increase the density bonus up to 35
percent, based on percentage increases to the number of on-site affordable units
proposed as part of the development. Senate Bill 435 expanded the scope of projects
entitled to obtain density bonuses and introduced tables for calculating density bonuses to
replace the more complicated language regarding how density bonuses increase on a
sliding scale. New parking standards that supersede local requirements reduce, in some
cases, the number of spaces that would be required and allow tandem configurations,
which previously were available only for parcels with narrow widths or with approval of a
variance. The number of incentives (up to three) required to be provided by the City to
developers, such as financial assistance or a reduction in development standards, to
facilitate the development of housing, is based on the percentage of affordable housing
units in the project.
DISCUSSION
Senate Bill 1818 has created uncertainty among local jurisdictions as to how to implement
its provisions and coordinate them with other state laws and local requirements.
Communities, especially those that have made prior efforts to streamline development
requirements, have been forced to reconsider the potential effects that additional
concessions allowed to developers will have on the quality and character of
neighborhoods. Some jurisdictions have down-zoned areas of high-density zoning so that
developers cannot be in a position to demand densities and projects that exceed existing
infrastructures. Other jurisdictions have sought to encourage developers to choose
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particular incentives/concessions by establishing a predetermined “menu” of modifications
to development standards that a developer can select from such as increased building
heights and parcel coverage; reduced setbacks, open space, lot size, and parking
requirements; and application processing incentives.
In residential districts, the proposed ordinance would codify the required increase in
density bonus up to 35 percent using the sliding scale established by State law. In
commercial districts, density bonuses are provided in the form of floor area ratio (FAR)
discounts as currently established in the Zoning Ordinance. However, the Zoning
Ordinance does not currently provide for such bonuses in the C5 and CP zoning districts,
and the proposed ordinance will establish up to a 35% density bonus for these zones.
Given that the City already provides significant incentives/concessions, compliance with
State law may be achieved through fairly simple changes to existing law. The City
currently offers a variety of housing and density bonus incentives in residentially zoned
districts. The following incentives are currently offered but require the issuance of a
variance:
?
An encroachment into no more than fifteen percent (15%) of one side yard setback
?
An encroachment into no more than fifteen percent (15%) of either the front or rear
yard setback, so long as a rear yard setback of less than five feet is not allowed
?
An increase in parcel coverage by no more than ten percent (10%) of parcel area
The proposed ordinance would eliminate the variance requirement and establish these
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zoning modifications as part of the menu of incentives. In addition, staff has reviewed
other potential incentives that minimize neighborhood impacts and take into consideration
Council’s direction not to adjust the existing height limit of structures. These incentives
include subterranean level modifications such as eliminating the requirement for
unexcavated side yards, allowing compact size parking spaces, and allowing an unlimited
number of stories within existing height limits. Council may want to consider whether these
incentives should be added to the proposed menu of incentives/concessions. Additional
incentives such as eliminating additional side, front, and rear upper setbacks were
considered, but these incentives result in more noticeable impacts to buildings including
increased building mass and loss of articulation. However, as required by State law,
developers could still request these incentives/concessions.
The City also currently offers a variety of housing and density bonus incentives in
commercially zoned districts, many of which exceed the minimum requirements mandated
by the new State law. The following existing incentives for residential projects in
commercial zones meet the new State density bonus guidelines:
?
Elimination of any restriction on the number of stories that can be constructed within
the allowable height limit of the commercial zoning district in which the project is
developed
?
Discounting the floor area devoted to residential use by fifty percent (50%) when
determining the threshold for a Development Review permit
In addition, the proposed ordinance would add the elimination of the private open space
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requirement as a third incentive for the developer to choose when authorized.
Density bonus provisions for land donations and childcare facilities and equity sharing
provisions for moderate income for-sale developments are also included in the proposed
ordinance and mirror State law.
ANALYSIS
Projects requesting a density bonus without incentives/concessions or requesting
incentives/concessions from the menu established by the proposed ordinance would be
reviewed by the Director of Planning or his/her designee if the project was not otherwise
subject to discretionary review. Projects requesting incentives/concessions not included in
the menu or requesting a waiver of a development standard would be subject to review by
the Planning Commission. As established by State law, the incentive/concession would
have to be granted unless very specific findings are made.
Future events may counsel considering modifications to this ordinance. For instance in
February, Council will assess proposed modifications to the Affordable Housing Program,
including requiring affordable units to be built on site; after Council sets policy, staff will
assess the advisability of further modifications to the density bonus ordinance. Also, the
experience of administering the density bonus ordinance could, as with any law, suggest
the utility of reassessment.
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CEQA STATUS
The proposed Ordinance revises the requirements for granting a residential density bonus
to comply with revisions to State law enacted by the Legislature through the adoption of
Senate Bills 1818 and 435. The revisions modify the criteria and incentives offered to
qualifying developments, but do not authorize construction not already permitted under the
City’s existing codes. Moreover, most of the incentives/concessions that the City has
designated as a matter of right are already authorized by the Zoning Ordinance, although
certain of these incentives currently require discretionary approval. Also, it is uncertain
how many projects will seek to utilize the provisions of State law and this Ordinance and
where such projects might be located in the City. Further, each individual project will be
subject to its own environmental review. Consequently, the attached proposed ordinance
is exempt from the requirements of the California Environmental Quality Act (CEQA)
pursuant to Section 15061(b)(3) of Title 14 of the California Code of Regulations since it
can be seen with certainty that there is no possibility the adoption and implementation of
this Ordinance may have a significant effect on the environment.
BUDGET/FINANCIAL IMPACT
The recommendation presented in this report does not have any budget or fiscal impact.
RECOMMENDATION
Staff recommends that the Council introduce for first reading the attached ordinance.
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Prepared by: Andy Agle, Interim Director
Amanda Schachter, Planning Manager
Jonathan Lait, AICP, Principal Planner
Tony Kim, Associate Planner
Planning and Community Development Department
Attachments:
A. Proposed Ordinance
B. Senate Bill 1818
C. Senate Bill 435
D. California Chapter of the American Planning Association’s Answers to Frequently
Asked Questions Regarding SB 1818 – Changes to Density Bonus Law - 2005
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Attachment A
Proposed Ordinance
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f:\atty\muni\laws\barry\Density Bonus Interim Ordinance 1-24-06
City Council Meeting 1-24-06 Santa Monica, California
ORDINANCE NUMBER _________ (CCS)
(City Council Series)
AN INTERIM ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
SANTA MONICA MODIFYING THE CITY’S DENSITY BONUS AND AFFORDABLE
HOUSING INCENTIVES IN ACCORDANCE WITH STATE DENSITY BONUS LAW
THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY
ORDAIN AS FOLLOWS:
SECTION 1. Findings and Purpose. The Council finds and declares:
(a) In September 2004, the Governor signed SB 1818 which significantly
changed the State’s density bonus law. SB 1818 became effective on January
1, 2005.
(b) This law imposes new state housing mandates on California cities in
the form of required density bonuses and incentives for housing developers.
The law lowers both the set-aside requirements for affordable units and the
density bonus. As additional affordable units are set aside, it gradually
increases the density bonus to a maximum of 35 percent. This law also provides
housing developers with additional incentives or concessions as the percentage
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of affordable units is increased. It also permits housing developers to request a
waiver of development standards if necessary to make a development feasible.
Cities must grant the requested concessions unless certain findings are made.
SB 1818 also includes density bonus provisions for senior housing development
and for housing developers that donate land to the City for affordable housing.
This legislation also continued previous density bonus provisions to encourage
the inclusion of child care facilities in affordable housing developments.
(c) In September 2005, the Governor also signed into law SB 435. This
law expanded the scope of developments entitled to obtain density bonuses to
include senior mobilehome parks, community apartment developments, and
stock cooperatives and made additional clarifications to the law.
(d) SB 1818 and SB 435 require cities to adopt implementing ordinances.
Notwithstanding the City’s constitutional right to control land use, this proposed
interim ordinance incorporates the new density bonus provisions and establishes
an implementation process addressing the incentives and concessions required
by State law.
(e) The City has received applications from developers seeking to take
advantage of the State’s new density bonus provisions.
(f) In accordance with State law, this proposed interim ordinance would
modify the City’s existing density bonus regulations to alter the number of units
that developers must agree to set aside as affordable to qualify for a density
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bonus and the corresponding density bonus percentages; to permit density
bonuses for common interest developments, senior citizen developments,
qualifying mobilehome parks, and donations of land; to authorize density
bonuses for affordable housing developments that include a child care facility on
site; and to provide required incentives, concessions, and development waivers.
(g) The City Council finds and declares that the public health, safety and
general welfare requires adoption of an interim ordinance since these revisions
are mandated by State law and the City has received development applications
that must be reviewed in accordance with State law.
(h) The City’s zoning and planning regulations should be revised to be
consistent with State law requirements. These permanent revisions will be
implemented in conjunction with the Land Use Element/Zoning Ordinance
update.
(i) Pending completion of this review and revision, in order to protect the
public health, safety, and welfare, it is necessary on an interim basis to modify
the City’s density bonus requirements as set forth in Section 2 of this Ordinance.
SECTION 2. Affordable Housing Incentives/Density Bonuses. The following
density bonuses and developer incentives/concessions shall be provided when a
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developer of a housing development seeks and agrees to construct a specified percentage
of housing for very low and lower income households, a senior citizen housing
development, a qualifying mobilehome park, a common interest for-sale development for
moderate income households, or seeks and agrees to donate land or provide child care
facilities:
Purpose
(a) . The purpose of this Section is to establish procedures for
implementing state density bonus requirements, as set forth in California
Government Code Sections 65915, as amended, and to increase the production of
affordable housing, consistent with the City’s goals, objectives, and policies.
Definitions
(b) . The following definitions shall apply to this Section:
Affordable Housing Production Program.
(1) Chapter 9.56 of the
Santa Monica Municipal Code and the Administrative Guidelines for the
Affordable Housing Production Program.
Affordable Housing Units.
(2) Dwelling units for which rental or
ownership costs do not exceed the limits stated in Section 65915 of the California
Government Code. Dwelling units designated for lower income households, as
defined in Section 50079.5 of the California Health and Safety Code shall have
rents not exceeding 30 percent of 60 percent of the area median income as set forth
on a rent schedule prepared by the City's Housing Division or any successor
agency. Dwelling units designated for very low income households, as defined in
Section 50105 of the California Health and Safety Code shall not have rents
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exceeding 30 percent of 50 percent of the area median income as set forth on a
rent schedule prepared by the City's Housing Division or any successor agency.
Dwelling units designated for moderate income households as defined in Section
50093 of the California Health and Safety Code shall be offered at an affordable
housing cost, as that cost is defined in Section 50052.5 of the Health and Safety
Code and the Affordable Housing Production Program.
Area Median Income.
(3)The estimate of median income in the Los
Angeles Long Beach Primary Metropolitan Statistical Area that is determined
periodically by the United States Department of Housing and Urban Development
(HUD) or any successor agency, adjusted for household size, and which is
published periodically.
Child care facility.
(4) A child day care facility other than a family day
care home, including, but not limited to, infant centers, preschools, extended day
care facilities, and school age child care centers.
Condominium Development.
(5) A housing development defined in
subdivision (f) of Section 1351 of the Civil Code, not including the conversion of
existing rental apartments to condominiums.
Density Bonus.
(6) A density increase over the otherwise maximum
allowable residential density granted pursuant to Government Code Section 65915
and this Ordinance.
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Density Bonus Housing Development
(7) . A housing development that
obtains a density bonus pursuant to Government Code Section 65915 and this
Ordinance.
Housing Development.
(8) A construction development consisting of five
or more residential units, including single family and multifamily units, for sale or for
rent. For purposes of this Ordinance, “housing development” also includes a
subdivision, planned unit development or condominium development consisting of
five or more residential units or unimproved residential lots, the substantial remodel
and conversion of an existing commercial building to residential use, and the
substantial remodel of an existing multifamily dwelling, where the remodel would
create a net increase of at least five residential units.
Incentive or Concession.
(9) A reduction in site development standards,
modification of the Zoning Ordinance or Chapter 9.32 (Architectural Review), or
other regulatory incentives or concessions proposed by the developer or the City as
specified in Government Code Section 65915(l).
Lower, Very Low, or Moderate Income.
(10)Annual income of a
household that does not exceed the area median for the income category as
specified in California Health and Safety Code Sections 50079.5, 50105, or 50093,
as determined by the City's Housing Division.
Qualifying Mobilehome Park
(11) . A mobilehome park that limits
residency based on age requirements for housing for older persons pursuant to
Section 798.76 or 799.5 of the Civil Code.
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Restricted Affordable Unit.
(12)An affordable housing unit in a
development rented or sold to a household with very low, lower, or moderate
income residents, and/or senior citizens in accordance with Government Code
Section 65915 and this Ordinance. For a rental development containing one or
more restricted affordable housing units, the owner shall record a document with
the Los Angeles County Recorder guaranteeing that the relevant affordability
criteria will be observed for at least thirty (30) years from the issuance of the
Certificate of Occupancy or a longer period of time as specified in Government
Code Section 65915(c)(1) and this Ordinance. In the case of for-sale units to
Moderate Income households, the owner shall comply with requirements set forth
by the City’s Housing Division. Rents for the lower and very low income density
bonus units shall be set at an affordable rent as defined in Sections 50079.5 and
50105 of the Health and Safety Code respectively. Owner-occupied units shall be
available at an affordable housing cost as defined in Section 50052.5 of the Health
and Safety Code for moderate income persons as defined in Section 50093 of the
Health and Safety Code.
Senior citizen housing development.
(13) A housing development as
defined in California Civil Code Sections 51.3.
Calculation of Minimum Density Bonus in Residential Zones
(c) . As
set forth in the Density Bonus Calculation Table and Density Bonus Summary Table
immediately following subsection (d) of this Section, the minimum density bonuses
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that shall be awarded to a housing development in a residential zone are
established by this subsection (c).
(1) The City shall grant a density bonus to a developer of a housing
development who seeks a density bonus and agrees to construct at least one of the
following in accordance with the requirements of this Section:
(i) Ten percent (10%) of the total units of the housing development as
restricted affordable units affordable to lower income households; or
(ii) Five percent (5%) of the total units of the housing development as
restricted affordable units affordable to very low income households; or
(iii) A senior citizen housing development; or
(iv) A qualifying mobilehome park
(v) Ten percent (10%) of the total units of a common interest development
as restricted affordable units affordable to moderate income households, provided
that all units in the development are offered to the public for purchase subject to the
restrictions specified in this Ordinance.
(2) In determining the number of density bonus units to be granted
pursuant to this subsection (c), the maximum residential density for the site shall be
multiplied by 0.20 for subdivision (1i), (1ii), 1(iii), and 1(iv) and by 0.05 for
subdivision (1)(v), unless a lesser number is selected by the developer. The
number of density bonus units may also be increased in accordance with
subsection (d) of this Section.
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(3) In calculating the minimum density bonus established by this
subsection (c) or the additional density bonus established by subsection (d), the
density bonus units shall not be included when determining the number of
restricted affordable units required to qualify for a density bonus and any
calculations resulting in a fractional number shall be rounded upwards to the
next whole number. Each housing development is entitled to only one density
bonus, which may be selected based on the percentage of either very low
restricted affordable units, lower income restricted affordable units or moderate
income restricted affordable units, or the development’s status as a senior
citizen housing development or qualifying mobilehome park. Density bonuses
from more than one category may not be combined.
Additional Density Bonus Increase in Residential Zones.
(d) As set
forth in the Density Bonus Calculation Table and Density Bonus Summary Table
immediately following this subsection (d), a housing development will be granted an
increase in the density bonus up to a maximum of thirty-five percent (35%) by
increasing the number of restricted affordable units, as follows:
(1) For each one percent (1%) increase in the percentage of restricted
Very Low Income affordable units, a housing development will receive an additional
two and one-half percent (2.5%) density bonus up to a maximum of thirty-five
percent (35%).
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(2) For each one percent (1%) increase in the percentage of restricted
Lower Income affordable units, a housing development will receive an additional
one and one-half percent (1.5%) density bonus up to a maximum of thirty-five
percent (35%).
(3) For each one percent (1%) increase in the percentage of Moderate
Income affordable units, a for-sale housing development will receive an additional
one percent (1%) density bonus up to a maximum of thirty-five percent (35%).
(4) For each one percent (1%) increase above the minimum ten percent
(10%) land donation described in Government Code Section 65915(h)(2), the
density bonus shall be increased by one percent (1%) to a maximum of thirty-five
percent (35%). This increase shall be in addition to any increase in density
mandated by subdivision (c) of this Section, up to a maximum combined by-right
density increase of thirty-five percent (35%).
(5) No additional density bonus increases shall be authorized for senior
citizen housing developments or qualifying mobilehome parks beyond the bonus
authorized by subsection (c) of this Section.
Density Bonus Summary Table
Target Group Minimum Bonus Additional % Restricted
Affordable
% Granted Bonus for Units
Restricted
Affordable
Units Each 1% Required
Increase in for
Restricted Maximum
Affordable
. Units 35% Bonus
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Very Low Income 5% 20% 2.5% 11%
Lower Income 10% 20% 1.5% 20%
Moderate Income (Common Interest Dev.) 10% 5% 1% 40%
Senior Citizen Housing 100% 20% -- --
Development/Qualifying Mobilehome Park
Density Bonus Calculation Table
Percentage of Very-Low Density Bonus Percentage
Income Units
5 20
6 22.5
7 25
8 27.5
9 30
10 32.5
11 35
Percentage of Lower-Income
Density Bonus Percentage
Units
10 20
11 21.5
12 23
13 24.5
14 26
15 27.5
16 29.0
17 30.5
18 32
19 33.5
20 35
Percentage of Moderate-Density Bonus Percentage
Income Units
10 5
11 6
12 7
13 8
14 9
15 10
20
16 11
17 12
18 13
19 14
20 15
21 16
22 17
23 18
24 19
25 20
26 21
27 22
28 23
29 24
30 25
31 26
32 27
33 28
34 29
35 30
36 31
37 32
38 33
39 34
40 35
Calculation of Density Bonus in Commercial Zones
(e) . Pursuant to
Santa Monica Municipal Code Section 9.04.08.15.060(a)(2) [BSC Zoning District],
Santa Monica Municipal Code Section 9.04.08.14.060 (b) [BCD Zoning District],
Santa Monica Municipal Code Section 9.04.08.16.060 (c) [C2 Zoning District],
Santa Monica Municipal Code Section 9.04.08.18.060(b) [C3 Zoning District, Santa
Monica Municipal Code Section 9.04.08.20.060 [C3-C Zoning District], Santa
Monica Municipal Code Section 9.04.08.22.060 [C4 Zoning District], Santa Monica
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Municipal Code Section 9.04.08.26.060 [C6 Zoning District], and Santa Monica
Municipal Code Section 9.04.08.28.060 [CM Zoning District], the density bonuses
that are awarded to a density bonus housing development in a commercial zone are
provided in the form of a floor area ratio bonus over the otherwise allowable floor
area. These provisions are not modified by this Ordinance. In the C5 Zoning
District and the CP Zoning District, a floor area ratio bonus of thirty-five percent
(35%) over the otherwise allowable floor shall be accorded density bonus housing
developments in those districts.
By-Right Parking Incentives.
(f) Density bonus housing developments
shall be granted the following maximum parking standards, inclusive of
handicapped and guest parking, which shall apply to the entire development, not
just the restricted affordable units, when requested by a developer:
(1) Zero to one bedroom dwelling unit: one onsite parking space
(2) Two to three bedrooms dwelling unit: two onsite parking spaces
(3) Four or more bedrooms: two and one-half parking spaces
If the total number of spaces required results in a fractional number, it shall
be rounded up to the next whole number.
Incentives or Concessions.
(g) As set forth in the
incentives/concessions summary table immediately following this subsection (g),
in addition to by-right parking incentives identified in subsection (f) above,
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density bonus housing developments shall be granted one, two or three
incentives or concessions as follows:
(1) For housing developments with Very Low Income restricted units:
(i) One incentive or concession if five percent (5%) of the units (not
including the bonus units) are set aside for very low income households.
(ii) Two incentives or concessions if ten percent (10%) of the units (not
including the bonus units) are set aside for very low income households.
(iii) Three incentives or concessions if fifteen percent (15%) of the
units (not including the bonus units) are set aside for very low income
households.
(2) For housing developments with Lower Income or Moderate Income
restricted units:
(i) One incentive or concession if ten percent (10%) of the units are set
aside for lower income households or if ten percent (10%) of the units are set aside
for moderate income households in a common interest development.
(ii) Two incentives or concessions if twenty percent (20%) of the units are
set aside for lower income households or if twenty percent (20%) of the units are
set aside for moderate income households in a common interest development.
(iii) Three incentives or concessions if thirty percent (30%) of the units are
set aside for lower income households or if thirty percent (30%) of the units are set
aside for moderate income households in a common interest development.
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(3) Housing developments that meet the requirements of Government
Code Section 65915(b) and include a child care facility that will be located on the
premises of, as part of, or adjacent to, the development, shall be granted an
additional concession or incentive that contributes significantly to the economic
feasibility of the construction of the child care facility.
(4) In submitting a proposal for the number of incentives or concessions
authorized by this subsection (g), a housing developer may request the specific
incentives set forth in the Menu of Incentives/Concessions in subsection (h) or
subsection (i) of this Section or may submit a proposal for other incentives or
concessions. The process for reviewing this request is set forth in subsection (n)
of this Section.
Incentives/Concessions Summary Table
Target Group Restricted Affordable Units
Very Low Income 5% 10% 15%
Lower Income 10% 20% 30%
Moderate Income (Common 10% 20% 30%
Interest Dev.)
Maximum 1 2 3
Incentive(s)/Concession(s)
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Menu of Incentives/Concessions in Residentially Zoned Districts.
(h)
Housing developments in residentially zoned districts that meet the requirements of
Paragraph (g) may request one or more of the following incentives, as applicable:
(1) Up to a fifteen percent (15%) deviation from one side yard setback
requirement.
(2) Up to a ten percent (10%) deviation from parcel coverage
requirement.
(3) Up to fifteen percent (15%) deviation from front or rear yard
setback requirements so long as rear yard setback is at least five feet.
Menu of Incentives/Concessions in Commercially Zoned Districts.
(i)
Housing developments in commercially zoned districts that meet the requirements
of Paragraph (g) may request one or more of the following incentives, as applicable:
(1) Elimination of any restriction on the number of stories that can be
constructed within the allowable height limit of the commercial zoning district in
which the development is constructed.
(2) The floor area devoted to residential use shall be discounted by fifty
percent (50%) when determining the threshold for a Development Review permit.
(3) Elimination of the private open space requirement.
Land Donation
(j) . When a developer of a housing development
donates land to the City as provided for in this section, the developer shall be
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entitled to a fifteen percent (15%) increase above the otherwise maximum allowable
residential density under the applicable zoning ordinance and land use element of
the general plan for the entire development. For each one percent (1%) increase
above the minimum ten percent (10%) land donation described in paragraph (2) of
this section; the density bonus shall be increased by one percent (1%), up to a
maximum of thirty-five percent (35%). This increase shall be in addition to any
increase in density allowed by subsection (c), up to a maximum combined density
bonus of thirty-five percent (35%) if a developer seeks both the increase regained
pursuant to this section and Section subsection (c). When calculating the number
of permitted density bonus units, any calculations resulting in fractional units shall
be rounded to the next larger integer.
(1) A housing development shall be eligible for the density bonus
described in this section if the City makes all of the following findings:
(i) The developer will donate and transfer the land no later than the date
of approval of the final subdivision map, parcel map, or development application for
the housing development.
(ii) The developable acreage and zoning classification of the land being
transferred are sufficient to permit construction of units affordable to very low
income households in an amount not less than ten percent (10%) of the number of
residential units of the proposed development, or will permit construction of a
greater percentage of units if proposed by the developer.
(iii) The transferred land is at least one acre in size or of sufficient size to
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permit development of at least forty (40) units, has the appropriate general plan
designation, is appropriately zoned for development as very low income housing,
and is now or at the time of construction will be served by adequate public facilities
and infrastructure. The land shall also have the appropriate zoning and
development standards to make the development of the very low income units
feasible. No later than the date of approval of the final subdivision map, parcel map,
or development application for the housing development, the transferred land will
have all of the permits and approvals, other than building permits, necessary for the
development of the very low income housing units on the transferred land.
(iv) The transferred land and the very low income units constructed on the
land will be subject to a deed restriction ensuring continued affordability of the units
consistent with this article, which restriction will be recorded on the property at the
time of dedication.
(v) The land will be transferred to the City, Redevelopment Agency, or to
a housing developer approved by the City. The City reserves the right to require the
developer to identify a developer of the very low income units and to require that
the land be transferred to that developer.
(vi) The transferred land is within the boundary of the proposed housing
development or is located within one quarter mile of the boundary of the proposed
housing development provided that the City makes all of the findings required by
this Section.
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Child Care Facilities
(k) . When a developer proposes to construct a
housing development that includes restricted affordable units as specified in
subsection (c) and includes a child care facility that will be located on the premises
of, as part of, or adjacent to the housing development, the City shall grant either of
the following if requested by the developer.
(1) An additional density bonus that is an amount of square feet of
residential space that is equal to or greater than the amount of square feet in the
child care facility.
(2) An additional concession or incentive that contributes significantly to
the economic feasibility of the construction of the child care facility.
(3) A housing development shall be eligible for the density bonus or
concession described in this section if the City makes all of the following findings:
(i) The child care facility will remain in operation for a period of time that
is as long as or longer than the period of time during which the restricted affordable
units are required to remain affordable pursuant to subsection (c) of this Section.
(ii) Of the children who attend the child care facility, the percentage of
children of very low income households, lower income households; or moderate
income households shall be equal to or greater than the percentage of dwelling
units that are proposed to be affordable to very low income households, lower
income households, or moderate income households.
(iii) Notwithstanding any requirement of this section, the City shall not be
required to provide a density bonus or concession for a child care facility if it finds,
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based upon substantial evidence, that the community already has adequate child
care facilities.
Equity-Sharing Agreement.
(l) Unless it is in conflict with the requirements
of another public funding source or law, the following equity-sharing agreement
shall apply to the restricted affordable units in a common interest development:
(1) Upon resale, the seller of the unit shall retain the value of any
improvements, the downpayment, and the seller’s proportionate share of
appreciation. The City shall recapture any initial subsidy and its proportionate
share of appreciation, which shall then be used within three years for any of the
purposes prescribed in subdivision (e) of Section 33334.2 of the Health and Safety
Code that promote homeownership.
(2) The City’s initial subsidy shall be equal to the fair market value of the
home at the time of initial sale minus the initial sale price to the moderate-income
household, plus the amount of any publicly-assisted downpayment assistance or
mortgage assistance. If upon resale, the market value is lower than the initial
market value, then the value at the time of resale shall be used as the initial market
value.
(3) The City’s proportionate share of appreciation shall be equal to the ratio
of the initial subsidy to the fair market value of the home at the time of the initial
sale.
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Waiver/Modification of Development Standards
(m) . Developers may
seek a waiver or modification of development standards that will have the effect of
precluding the construction of a density bonus housing development at the
densities or with the concessions or incentives permitted by this Section. The
developer shall show that the waiver or modification is necessary to make the
housing units economically feasible and that the development standards will have
the effect of precluding the construction of a housing development meeting the
criteria of subsection (c) of this Section at the densities or with the concessions or
incentives permitted by this Ordinance.
Procedures
(n)
(1) An application for a density bonus, incentive, concession, waiver,
modification, or revised parking standard pursuant to this Ordinance shall be
submitted with the first application for approval of a housing development and
processed concurrently with all other applications required for the housing
development. The application shall be submitted on a form prescribed by the
City and shall include at least the following information:
(i) Site plan showing total number of units, number and location of
affordable housing units, and number and location of proposed density bonus units.
(ii) Level of affordability of affordable housing units and proposals for
ensuring affordability.
(iii) Description of any requested incentives, concessions, waivers or
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modifications of development standards, or modified parking standards. For all
incentives and concessions that are not included within the menu of
incentives/concessions set forth in subsections (h) and (i) of this Section, the
application shall include evidence that the requested incentives and concessions
result in identifiable, financially sufficient, and actual cost reductions.
(iv) If a density bonus or concession is requested for a land donation, the
application shall show the location of the land to be dedicated and provide evidence
that each of the findings included in subsection (j) of this Section can be made.
(v) If a density bonus or concession is requested for a childcare facility,
the application shall show the location and square footage of the child care facilities
and provide evidence that each of the findings included in subsection (k) of this
Section can be made.
(2) Except as provided in subdivision (4) of this subsection (n), an
application for a density bonus, incentive, concession, waiver, modification, or
revised parking standard pursuant to this Ordinance shall be considered by and
acted upon by the approval body with authority to approve the housing development
and subject to the same administrative appeal procedure, if any. In accordance
with state law, neither the granting of a concession, incentive, waiver, or
modification nor the granting of a density bonus shall be interpreted, in and of itself,
to require a general plan amendment, zoning change, variance, or other
discretionary approval.
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(3) For housing developments requesting a density bonus without any
incentives, or a density bonus with by-right incentives and/or one or more
incentives included in the Menu of Incentives/Concessions in subsection (h) or
subsection (i) above, the following shall apply if the housing developments are not
otherwise subject to discretionary review:
(i) The Director of Planning or his/her designee shall issue a
determination pursuant to Government Code Section 65915 and this Ordinance.
(ii) Pursuant to Government Code Section 65915, the Director or his/her
designee shall approve a density bonus and requested incentives/concessions
unless he/she finds that:
(A) The incentive or concession is not required to provide for affordable
housing costs as defined in Section 50052.5 of the Health and Safety Code, or for
rents for the affordable units, or
(B) The concession or incentive will have a specific adverse impact upon
public health and safety, on the physical environment, or on any real property that
includes an Historic Cultural Monument, as declared by the City, State or Federal
government, and for which there is no feasible method to satisfactory mitigate or
avoid the specific adverse impact without rendering the development unaffordable
to Moderate, Lower or Very Low Income households.
(iii) Notice. Notice of the determination shall be provided to same extent
as required for the underlying development approval.
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(4) For housing developments requesting a waiver of a development
standard or an incentive/concession not included in the Menu of
Incentives/Concessions in subsection (h) and subsection (i), the following shall
apply:
(i) Hearing and Notice. An application pursuant to this subdivision shall
follow the procedures for Design Compatibility Permits forth in Section
9.04.20.15.030. A public hearing shall be held by the City Planning Commission
and the Commission shall issue a determination.
(ii) Pursuant to Government Code Section 65915, the City Planning
Commission shall approve a density bonus and requested incentives/concessions
unless a finding is made that:
(A) The incentive or concession is not required to provide for affordable
housing costs as defined in Section 50052.5 of the Health and Safety Code, or for
rents for the affordable units, or
(B) The concession or incentive will have a specific adverse impact upon
public health and safety, on the physical environment or on any real property that
includes an Historic-Cultural Monument, as declared by the City, State or Federal
government, and for which there is no feasible method to satisfactory mitigate or
avoid the specific adverse impact without rendering the development unaffordable
to Moderate, Lower or Very Low Income households.
(iii) Appeal. The decision of the City Planning Commission may be
appealed to the City Council within fourteen consecutive calendar days of the date
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the decision is made in the manner provided in Santa Monica Municipal Code, Part
9.04.20.24.
Chapter 9.56
(o) . Notwithstanding any provision of this Section to the
contrary, development projects remain subject to all applicable requirements of
Chapter 9.56, the City’s Affordable Housing Production Program, including but not
limited to Sections 9.56.050, 9.56.100, 9.56.110, and 9.56.130.
SECTION 3. This ordinance shall be of no further force or effect sixty days after its
effective date, unless prior to that date, after a public hearing, noticed pursuant to Santa
Monica Municipal Code Section 9.04.20.22.050, the City Council, by majority vote, extends
this interim ordinance.
SECTION 4. Any provision of the Santa Monica Municipal Code or appendices
thereto inconsistent with the provisions of this Ordinance, to the extent of such
inconsistencies and no further, is hereby repealed or modified to that extent necessary
to effect the provisions of this Ordinance.
SECTION 5. If any section, subsection, sentence, clause, or phrase of this
Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court
of competent jurisdiction, such decision shall not affect the validity of the remaining
portions of this Ordinance. The City Council hereby declares that it would have passed
this Ordinance and each and every section, subsection, sentence, clause, or phrase not
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declared invalid or unconstitutional without regard to whether any portion of the ordinance
would be subsequently declared invalid or unconstitutional.
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SECTION 6. The Mayor shall sign and the City Clerk shall attest to the passage of
this Ordinance. The City Clerk shall cause the same to be published once in the official
newspaper within 15 days after its adoption. This Ordinance shall become effective 30
days from its adoption.
APPROVED AS TO FORM:
________________________
MARSHA JONES MOUTRIE
City Attorney
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Attachment B
Senate Bill 1818
Electronic version of attachment is not available for review. Document is available for
review at the City Clerk’s office and the Libraries.
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Attachment C
Senate Bill 435
Electronic version of attachment is not available for review. Document is available for
review at the City Clerk’s office and the Libraries.
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Attachment D
California Chapter of the American Planning Association’s Answers to Frequently
Asked Questions Regarding SB 1818 – Changes to Density Bonus Law - 2005
Electronic version of attachment is not available for review. Document is available for
review at the City Clerk’s office and the Libraries.
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