SR-031108-7B~®
~;tyof City Council Report
Santa Monica
City Council Meeting: March 11, 2008
Agenda Item:
To: Mayor and City Council
From: Eileen Fogarty, Planning & Community Development Director
Subject: Extension of Affordable Housing Density Bonus Interim Ordinance No.
2180 (CCS) to July 26, 2010
Recommended Action
Staff recommends that the City Council introduce for first reading an interim ordinance
extending Ordinance Number 2180 (CCS) until July 26, 2010.
Executive Summary
An interim ordinance was adopted in February 2006 to implement State law regarding
density bonuses for projects that include affordable housing. As this ordinance will
expire on May 11, it is proposed to extend the ordinance until July 26, 2010. There are
three recommended modifications to the current interim ordinance that are proposed to
clarify certain of its provisions.. This report also summarizes permit activity based on the
interim ordinance in the last two years. Staff anticipates that this ordinance will be
codified in the Zoning Code as part of the upcoming comprehensive update.
Background
In February 2006, Council approved Interim Ordinance 2176(CCS), which modified the
density bonus provisions of the Zoning Ordinance in accordance with State density
bonus law. Interim Ordinance No. 2180 (CCS) extended this ordinance and clarified the
calculation of development bonuses in the City's commercial and industrial zones.
Ordinance Number 2180 (CCS) will expire on May 11, 2008 unless extended prior to
that date.
The current interim ordinance modifies the City's existing density bonus regulations in
the following ways:
• It alters the number of affordable units that developers must agree to set aside to
qualify for a density bonus and the corresponding density bonus percentages;
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It permits density bonuses for specified common interest developments, senior
citizen developments, qualifying mobile home parks, and donations of land;
It authorizes density bonuses for affordable housing developments that include a
child care facility on site;
It defines the bonus calculation for residential, commercial and the M1 industrial
zoning districts.
It provides State-required incentives and concessions, and establishes a procedure
for seeking development waivers.
Discussion
Since adoption in February 2006, twelve market rate projects and one 100% affordable
project have been submitted utilizing the entitlements included in this interim ordinance.
Additionally, at least one project that applied for aState-allowed density bonus prior to
the City's adoption of this interim ordinance has received entitlements and utilized other
incentives permitted in the interim ordinance. In the case of the market rate projects,
each has included one affordable unit in order to qualify for the density bonus. Based on
planning application data, these projects collectively will add two Very Low, two Low
and eight Moderate income units to the City's housing stock. The projects are scattered
geographically throughout the city.
In June 2006, further Council action altered the Affordable Housing Production Program
to require construction of affordable units, on-site or off-site for residential ownership
projects that exceed three units in residentially zoned areas. The twelve projects
discussed above exemplify how that requirement, together with the density bonus
included in this interim ordinance, combine to facilitate the on-site construction of
affordable housing within market rate residential projects, advancing a key City goal to
increase the supply of affordable housing citywide.
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After reviewing the administration of this ordinance over the last two years, staff
proposes a few clarifications to the existing interim ordinance. The following
modifications are proposed [page numbers refer to Attachment A]:
1. Section 2(b)(8) [page 6] would be amended to clarify that a housing
development of four or more units would be eligible for a density bonus and
incentives/concessions. Although State density bonus law provides that the
State law applies to projects of five or more units, the City's Affordable
Housing Production Program (AHPP) provides that any project which meets
its affordable housing obligation by constructing affordable housings units is
entitled to the State density bonus. Consequently, this proposed ordinance
would clarify that the City's density bonus law applies to projects of four or
more units consistent with the City's AHPP.
2. Section 2(i)(2) [page 17] would be amended to clarify one of the incentives set
forth in the menu of incentives established by the interim ordinance. More
specifically, the proposed ordinance would provide that as one of the
incentives, an applicant may request up to a ten percent "increase in first
floor" parcel coverage, replacing the current language "a ten percent deviation
from" parcel coverage. The 2nd, 3rd, and 4th floor story parcel coverage, if
any, would continue to be derived from the first floor parcel coverage in
accordance with the City's Zoning Ordinance.
3. Section 2(0)(2) and (3) [page24): Section 2(0)(2) and (3) would be amended to
clarify that density bonus and incentives/concessions selected from the menu
established in the ordinance would be approved by the Director of Planning or
his/her designee while any request for incentives/concessions that are not
included in the menu or for development standard waivers would be reviewed
by the Planning Commission. As established by State law, the
incentive/concession would have to be granted unless very specific findings
are made.
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Interim Ordinance No. 2180 (CCS) implements State law that continues to be
applicable, and as such extension of the ordinance is necessary in order to comply with
that law. Council may elect to extend this interim ordinance until July 26, 2010. It is
intended that these density bonus provisions will be incorporated into the Zoning Code
in the upcoming comprehensive update, which should be completed before that date.
Alternatives
Other than the recommended action of extending the interim ordinance, Council may
ask staff to process a text amendment to adopt these measures, in whole or in part,
permanently into the Municipal Code. If this is desired, it is recommended that Council
also approve an extension at this time in order to ensure that the interim ordinance does
not expire prior to becoming a permanent ordinance.
Environmental Analysis
The proposed Ordinance extends the revisions to the City's density bonus law to
comply with changes 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. 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.
Financial Impacts & Budget Actions
The recommendation presented in this report has no budget or financial impact.
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Prepared by:
Elizabeth Bar-EI, AICP, Senior Planner
Attachments:
A. Draft Interim Ordinance
B. Staff report for original interim ordinance, January 24, 2006
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Approved: Forwarded to Council:
ATTACHMENT A:
DRAFT INTERIM ORDINANCE
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f:\atty\muni\laws\barry\Density Bonus Interim Ordinance 3-11-08
City Council Meeting 3-11-08 Santa Monica, California
ORDINANCE NUMBER (CCS)
(City Council Series)
AN INTERIM ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
SANTA MONICA EXTENDING, WITH MODIFICATIONS AND CLARIFICATIONS, THE
INTERIM ORDINANCE 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 of
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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
bonus and the corresponding density bonus percentages; to permit density
bonuses for common interest developments, senior citizen developments,
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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) In light of these concerns, the City Council adopted Ordinance Number
2176 (CCS) on February 14, 2006 which modified the City's density bonus and
affordable housing incentives in accordance with State density bonus law and
extended this ordinance by adopting Ordinance Number 2180 (CCS) on April 11,
2006.
Q) 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
and extend the initial interim ordinance until July 26, 2010.
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SECTION 2. Affordable Housing Incentives/Density Bonuses. The following.
density bonuses and developer incentives/concessions shall be provided when a
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:
(a) Purpose. 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.
(b) Definitions. The following definitions shall apply to this Section:
(1) Affordable Housing Production Program. Chapter 9.56 of the
Santa Monica Municipal Code and the Administrative Guidelines for the
Affordable Housing Production Program.
(2) Affordable Housing Units. 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
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defined in Section 50105 of the California Health and Safety Code shall not have
rents 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.
(3) Area Median Income. 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.
(4) Child care facility. 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.
(5) Condominium Development. A housing development defined in
subdivision (f) of Section 1351 of the Civil Code, not including the conversion of
existing rental apartments to condominiums.
(6) Density Bonus. A density increase over the otherwise maximum
allowable residential density granted pursuant to Government Code Section
65915 and this Ordinance.
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(7) Density Bonus Housing Development. A housing development
that obtains a density bonus pursuant to Government Code Section 65915 and
this Ordinance.
(8) Housing Development. A construction development consisting of
#ive four 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 #ive four or more residential units or unimproved residential lots, the
substantial remodel and conversion of an existing commercial building to
residential use, the substantial remodel of an existing multifamily dwelling, where
the remodel would create a net increase of at least f+ve four residential units, or
additional housing development mandated by Government Code Section 65915.
(9) Incentive or Concession. 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(1).
(10) Lower, Very Low, or Moderate Income. 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.
(11) Qualifying Mobilehome Park. 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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(12) Restricted Affordable Unit. 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 ihcome persons as defined in Section
50093 of the Health and Safety Code.
(13) Senior citizen housing development. A housing development as
defined in California Civil Code Sections 51.3.
(c) Calculation of Minimum Density Bonus in Residential Zones.
As set forth in the Density Bonus Calculation Table and Density Bonus Summary
Table immediately following subsection (d) of this Section, the minimum density
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bonuses 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 (1 i), (1 ii), 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.
(3) In calculating the minimum density bonus established by this
subsection (c) or the additional density bonus established by subsection (d), the
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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 mobilehbme park. Density bonuses from
more than one category may not. be combined.
(4) A developer may request a lesser density bonus that that which is
available for a housing development under this subsection (c); however, the City
shall not be required to .similarly reduce the number of units required to be
dedicated pursuant to this subsection and Government Code Section 65915(b).
(d) Additional Density Bonus Increase in Residential Zones. As
set forth in the Density Bonus Calculation Table and Density Bonus Summary
Table immediately following this subsection (d), a housing development shall 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.
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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
Ve Lowlncome 5% 20% 2.5% 11%
Lowerlncome 10% 20% 1.5%- 20%
Moderate Income Common Interest Dev. 10% 5% 1 % 40%
Senior Citizen Housing 100% 20% -- --
Develo menUQuali in Mobilehome Park
Density Bonus Calculation Table
Percentage of Very-Low Income
Units Density Bonus Percentage
5 20
6 22.5
7 25
8 27.5
9 30
10 32.5
11 35
Percentage ofLower-Income
Units Density Bonus Percentage
10 20
11 21.5
12 23
13 24.5
14 26
15 27.5
16 29.0
17 30.5
18 32
11
19 33.5
20 35
Percentage of Moderate-Income
Units Density Bonus Percentage
10 5
11 6
12 7
13 8
14 9
15 10
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
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(e) Calculation of Development Bonus in Commercial Zones. The
development bonus awarded to a housing development in a commercial zone is
established by this subsection (e).
(1) 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 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 development bonus that is
awarded to a housing development in a commercial zone is provided in the form
of a floor area ratio bonus over the otherwise allowable maximum floor area ratio.
These provisions are not modified by this Ordinance. In the C5 Zoning District
and the CP Zoning District, a residential floor area ratio bonus of thirty-five
percent (35%) over the otherwise allowable maximum floor area ratio shall be
accorded housing developments in those districts.
(2) In determining the base project for purpose of calculating the number
of affordable housing units required in the housing development, the floor area
ratio bonus shall kie excluded, so long as the percentage of the floor area bonus
that is excluded does not exceed the corresponding State density bonus
percentage.
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(f) Calculation of Development Bonus in Industrial Zones.
The development bonus awarded to a housing development in an
industrial zone is established by this subsection (f).
(1) Pursuant to Santa Monica. Municipal Code Section 9.04.08.34.060(b)
[M1 Zoning District] and Santa Monica Municipal Code Section
9.04.08.35.050(b)(2) [LMSD Zoning District], the development bonus that is
awarded to artist studios is provided in the form of a floor area ratio bonus over
the otherwise allowable maximum floor area ratio. These provisions are not
modified by this Ordinance. In the M1 Zoning District, a residential floor area
ratio bonus of thirty-five (35%) over the otherwise allowable maximum floor area
ratio shall be accorded housing developments in that district.
(2) In determining the base project for purpose of calculating the number
of affordable housing units required in the housing development, the floor area
ratio bonus shall be excluded, so long as the percentage of the floor area bonus
that is excluded does not exceed the corresponding State density bonus
percentage.
(g) By-Right Parking Incentives. 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:
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(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. For purposes of this subsection
(g), this parking may be provided through tandem parking or uncovered parking,
but not through on-street parking.
(h) Incentives or Concessions. As set forth in the
incentives/concessions summary table immediately following this subsection (h),
in addition to by-right parking incentives identified in subsection (g) above,
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:
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(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.
(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 (h), a housing developer may request the specific
incentives set forth in the Menu of Incentives/Concessions in subsection (i) or
subsection Q) of this Section or may submit a proposal for other incentives or
concessions. The process for reviewing this request is set forth in subsection
(o) of this Section.
Incentives/Concessions Summary Table
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Target Group Restricted Affordable Units
Ve Low Income 5% 10% 15%
Lower Income 10% 20% 30%
Moderate Income (Common
Interest Dev.) 10% 20% 30%
Maximum
Incentive(s)/Concession s 1 2 3
(i) Menu of Incentives/Concessions in Residentially Zoned
Districts. Housing .developments in residentially. zoned districts that meet the
requirements of subsection (h) 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%) increase in first floor
parcel coverag., ~-~i;~n;e„i
(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.
Q) Menu of Incentives/Concessions in Commercially or Industrially
Zoned Districts. Housing developments in commercially or industrially. zoned
districts that meet the affordability requirements of subsection (h) may request
one or more of the following incentives, as applicable, in addition to the by-right
residential parking incentive of subsection (g):
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(1) Elimination of any restriction on the number of stories that can be
constructed within the allowable height limit of the commercial or industrial
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.
(k) Land Donation. When a developer of a housing development
donates land to the City as provided for in this section, the developer shall be
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 fen percent (10%) land donation described in
paragraph (2) of this sectidn; 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 required pursuant to this subsection (k) and 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:
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(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 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 Ordinance, which restriction will be recorded on the
property at the time of dedication.
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(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.
(I) Child Care Facilities. 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
20
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, based .upon substantial evidence, that the community already has
adequate child care facilities.
(m) Equity-Sharing Agreement. 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.
21
(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.
(n) Waiver/Modification of Development Standards. 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.
(o) Procedures
(1) An application for a density bonus, incentive, concession, waiver,
modification, or revised parking standard pursuant to this Ordinance shall be
22
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
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 (i) and Q) of this Section, the
application shall include evidence that the requested incentives and concessions
result in identifiable, financially sufficient, and actual cost reductions. The cost of
reviewing any required pro forma or other financial data submitted as part of the
application in support of a request for a incentive/concession or
waiver/modification of developments standard, including, but not limited to the
cost to the City of hiring a consultant to review said financial data shall be borne
by the developer.
(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
23
evidence that each of the findings included in subsection (k) 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 (I)
of this Section can be made.
(L) Cvnn»+ .~ nvirJnrl i» c, hrl liicin» (A\ of +h'c cnhonn+'n /nl
~»nlin-'fir-a do cifi/ hn» a o»4'v nnco"n u,nFi nr!'f'nn+'.~
?ntnrl n h i +hc n+inl hnr~l r u+h +hnr'+ ~ +n o»»mvn +hn h '
avcvv vpvir a`~. ~ '" mvr rcj--cv-c ppr~v~e~crrc-rr^vvvrr'rg
. 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.
(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 (i) or
subsection (j) above, the following shall apply ¢ +hn hn, ~ n ,+n.,n~n»»,n»+~ .,
24
(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.
(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 (i) and subsection Q), 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.
25
(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 the decision is made in the manner provided in Santa Monica Municipal
Code, Part 9.04.20.24.
(p) Chapter 9.56. 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 after July 26,
2010.
26
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 declared invalid or unconstitutional without regard to whether any portion
of the ordinance would be subsequently declared invalid or unconstitutional.
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:
~~ vl/L~
M SHA NESM UTRIE
Cit Attor
27
ATTACHMENT B
City Council Staff Report Dated January 24, 2006
34
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 Ih 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 thatwould reduce costs forthe developer. As detailed
in the attached California Chapter of the American Planning Association document, a
2
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 narrowwidths orwith 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. Somejurisdictions have down-zoned areas ofhigh-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
3
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
4
zoning modifications as part of the menu of incentives. In addition, staff has reviewed
other potential incentives that mihimize 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 considerwhetherthese
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 of-ers 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
5
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.
6
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.
7
Prepared by: AndyAgle, 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
8
Attachment A
Proposed Ordinance
9
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 of
10
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
11
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, ih 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 developer
of a housing development seeks and agrees to construct a specified percentage of housing
12
for very low and lower income households, a senior citizen housing development, a
qualifying mobilehome park, a common interest for-sale developmentfor moderate income
households, or seeks and agrees to donate land or provide child care facilities:
(a) Purpose. 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.
(b) Definitions. The following definitions shall apply to this Section:
(1) Affordable Housing Production Program. Chapter 9.56 of the
Santa Monica Municipal Code and the Administrative Guidelines for the
Affordable Housing Production Program.
(2) Affordable Housing Units. 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
Sectioh 50105 of the California Health and Safety Code shall not have rents
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.
13
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.
(3) Area Median Income. 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.
(4) " Child care facility. 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.
(5) Condominium Development. A housing development defined in
subdivision (f) of Section 1351 of the Civil Code, not including the conversion of
existing rental apartments to condominiums.
(6) Density Bonus. A density increase over the otherwise maximum
allowable residential density granted pursuant to Government Code Section 65915
and this Ordinance.
(7) Density Bonus Housing Development. A housing development that
obtains a density bonus pursuant to Government Code Section 65915 ahd this
Ordinance.
14
(8) Housing Development. A construction development consisting of five
or more residential units, including single family and multifamily units, for sale orfor
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. :
(9) Incentive or Concession. 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(1).
(10) Lower, Very Low, or Moderate Income. 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.
(11) Qualifying Mobilehome Park. 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.
(12) .Restricted Affordable Unit. 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
15
Section 65915 and this Ordinance. For a rental development containing one or
more restricted affordable housing units, the owner shall record a documentwith the
Los Angeles County Recorderguaranteeing thatthe 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.
(13) Senior citizen housing development. A housing development as
defined in California Civil Code Sections 51.3.
(c) Calculation of Minimum Density Bonus in Residential Zones. 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
that shall be awarded to a housing development in a residential zone are
established by this subsection (c).
16
(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.
(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
17
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.
(d) Additional Density Bonus Increase in Residential Zones. As set
forth in the Density Bonus Calculation Table and Density Bonus Summary Table
immediately following this subsection (d), a housing development will begranted 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 ih 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%).
(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%).
18
(3) For each one percent (1%) increase in the percentage of Moderate
Income affordable units, afor-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
Ve Low Income 5% 20% 2.5% 11%
Lowerlncome 10% 20% 1.5% 20%
Moderate Income Common Interest Dev. 10% 5% 1% 40%
Senior Citizen Housing 100% 20% -- --
Develo menUQuali in Mobilehome Park
Density Bonus Calculation Table
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Percentage of Very-Low
Income Units Density Bonus Percentage
5 20
6 22.5
7 25
8 27.5
9 30
10 32.5
11 35
Percentage of Lower-Income
Units Density Bonus Percentage
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-
Income Units Density-Bonus Percentage
10 5
11 6
12 7
13 8
14 9
15 10
16 11
17 12
18 13
19 14
20 15
21 16
22 17
20
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
(e) Calculation of Density Bonus in Commercial Zones: 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
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
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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.
(f) By-Right Parking Incentives. .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.
(g) Incentives or Concessions. 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,
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:
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(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.
(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.
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(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
Tar et Group. Restricted Affordable Units
Ve Low Income 5% 10% 15%
Lower Income 10% 20% 30%
Moderate Income (Common
Interest Dev. 10% 20% 30%
Maximum
Incentive s /Concession s 1 2 3
(h) Menu of Incentives/Concessions in Residentially Zoned Districts.
Housing developments in residentially zoned districts that meetthe 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.
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(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.
(i) Menu of Incentives/Concessions in Commercially Zoned Districts.
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 zohing 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.
(j) Land Donation. When a developer of a housing development
donates land to the City as provided for in this section, the developer shall be
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
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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
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
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have all ofthe permits and approvals, otherthan building permits, necessaryforthe
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, orto
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.
(k) Child Care Facilities. 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
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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 fora child care facility if it finds,
based upon substantial evidence, that the community already has adequate child
care facilities.
(I) Equity-Sharing Agreement. 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
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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.
(m) Waiver/Modification of Development Standards. 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 atthe 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
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subsection (c) of this Section at the densities or with the concessions or incentives
permitted by this Ordinance.
(n) Procedures
(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
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
applicatioh shall include evidence that the requested incentives and cohcessions
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
30
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.
(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.
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(ii) Pursuant to Government Code Section 65915, the Director orhis/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 exteht
as required for the underlying development approval.
(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.
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(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
the decision is made in the manner provided in Santa Monica Municipal Code, Part
9.04.20.24.
(o) Chapter 9.56. 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.
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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
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.
36
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.
37
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 revievv. Document is available for
review at the City Clerk's office and the Libraries.
38