HomeMy WebLinkAbout2014-07ORDINANCE NO. 2014-07
REPEALING SECTION 32 -74 - DENSITY BONUS OF THE DANVILLE
MUNICIPAL CODE AND ADOPTING A NEW
SECTION 32 -74 - DENSITY BONUS
The Danville Town Council does ordain as follows:
SECTION 1. REPEALING THE EXISTING SECTION 32 -74 OF THE DANVILLE
MUNICIPAL CODE.
The existing Section 32 -27 of the Danville Municipal Code is repealed in its entirety.
SECTION 2. ADDING A NEW SECTION 32 -74 TO THE DANVILLE MUNICIPAL
CODE.
A new Section 32 -74 is hereby added to the Danville Municipal Code to read as follows:
32 -74 DENSITY BONUS.
32 -74.1 Purpose
32 -74.2 Definitions
32 -74.3 Density Bonus
32 -74.4 Minimum Requirements; Calculation; Continued Affordability
32 -74.5 Incentives
32 -74.6 General Requirements
32 -74.7 Violation - Penalty
32 -74.8 Enforcement
32 -74.9 Appeals
32 -74.1- Purpose.
This section 32 -74 is adopted to comply with state law requirements for providing a
density bonus to a housing developer who provides affordable housing units.
32 -74.2 - Definitions.
For the purposes of this section, certain words and phrases shall be interpreted as set
forth in this section unless it is apparent from the context that a different meaning is
intended.
a. Affordable housing cost shall be the cost to rent or purchase a house as defined in
Section 50052.5 of the Health and Safety Code. (Govt. Code § 65915(d)(1).)
Housing cost means the monthly mortgage (including principal and interest),
property taxes, and homeowner association fees, where applicable, for
ownership units; and the monthly rent and an appropriate utility allowance for
rental units.
b. Affordable unit, for rent. Affordable rent (including a reasonable utility allowance)
shall not exceed the following:
(1) For very low - income households, the product of 30% times 50% of the
area median income adjusted for family size appropriate for the unit;
(2) For low - income households whose gross incomes exceed the maximum
income for very low- income households, the product of 30% times 60% of
the area median income adjusted for family size appropriate for the unit;
(3) For moderate - income households, the product of 30% times 110% of the
area median income adjusted for family size appropriate for the unit.
(Hith. and Saf. Code § 50053.)
C. Affordable unit, for sale. Affordable housing cost may not exceed the following:
(1) For very low- income households, the product of 30% times 50% of the
area median income adjusted for family size appropriate for the unit;
(2) For low - income households whose gross incomes exceed the maximum
income for very low- income households and do not exceed 70% of the
area median income adjusted for family size, the product of 30% times
70% of the area median income adjusted for family size appropriate for
the unit;
(3) For moderate - income households, not less than 28% of the gross income of
the household, not exceeding the product of 35% times 110% of area
median income adjusted for family size appropriate for the unit. (Health
and Safety Code § 50052.5(b).)
d. Affordable units. Living units that are required to be rented at affordable rents or
available at affordable housing costs to specified households.
e. Area median income. The area median income for Contra Costa County as
published at Title 25, California Code of Regulations, Section 6932.
f. Applicant means any person, firm, partnership, association, joint venture,
corporation, or any entity or combination of entities which seeks Town real
property development permits and approvals.
g. Approval means approval by the Town of a discretionary permit such as a
tentative map, planned development or land use permit for a project.
h. Density bonus. An increase over the otherwise maximum allowable residential
density. (Gov't. Code § 65915(f). See also Gov't. Code §65917.5(a)(2).)
i. Developer means the same as applicant. (See above definition.)
j. Disabled person means a person with a physical or mental disability as defined at
Government Code section 12926.
k. Household income levels includes:
(1) Low - income household A household whose income does not exceed the
low- income limits applicable to Contra Costa County, as published and
periodically updated by the State Department of Housing and
DENSITY BONUS ORDINANCE PAGE 2 OF ORDINANCE NO. 2014-07
Community Development pursuant to Health and Safety Code section
50079.5.
(2) Lower income household. A lower income household as defined in Civil
Code sections 51.3 and 51.12. (Govt. Code §§ 65915(b)(1) and (c)(1) and
Health and Saf. Code § 50079.5.) It includes both low - income and very -
low income households.
1. Moderate - income household. A household with an annual income between the
lower income eligibility limit and 120% of area median income limits applicable
to Contra Costa County, as published and periodically updated by the State
Department of Housing and Community Development pursuant to Section
50079.5 of the California Health and Safety Code. (Govt. Code § 65915(c)(2),
Health and Saf. Code § 50093.)
M. Very low- income household. A household whose income does not exceed the very
low- income limits applicable to Contra Costa County, as published and
periodically updated by the State Department of Housing and Community
Development pursuant to California Health and Safety Code section 50105.
(Govt. Code § 65915(b)(2) and (c)(1).
n. Incentive or concession means a regulatory modification that results in identifiable,
financially sufficient, actual cost reductions, such as a reduction in site
development standards, modification of zoning requirements (including
approval of mixed -use zoning), modification of architectural design
requirements, reduction in setback or square footage requirements,_ an d
reduction in vehicular parking spaces. (Govt. Code § 65915(d) and (k).)
o. Permit means an approved application by the Town of Danville for a
development plan, land use entitlement, subdivision, Planned Unit Development
or building permit.
P. Project means a housing development at one (1) location, including all dwelling
units for which permits have been applied for or approved within a twelve (12)
month period.
q. Project owner means any person, firm, partnership, association, joint venture,
corporation, or any entity or combination of entities that holds fee title to the
land on which the project is located.
r. Restricted occupancy unit means a unit restricted in such a manner that it is sold or
rented at a rate affordable to very low or low income households; a unit
restricted in such a manner that it is sold or rented at a rate affordable to
moderate income households containing a handicapped household member; or a
unit restricted in such a manner that it is occupied by a senior household.
S. Target unit. A dwelling unit within a housing development which will be
reserved for sale or rent to, and is made available at an affordable rent or
affordable ownership cost to, very low -, low -, or moderate - income households,
or is a unit in a senior citizen housing development.
t. Town means the Town of Danville or its designee, or any entity with which the
Town contracts with to administer this section.
U. Unit type means dwelling units with similar floor area and number of bedrooms.
DENSITY BONUS ORDINANCE PAGE 3 OF ORDINANCE NO. 2014 -07
32 -74.3 - Density Bonus.
The Town shall grant a density bonus and other incentives to a qualifying applicant for
a housing development of five or more units. A Developer may qualify for a density
bonus if:
a. the proposed housing development provides the minimum number of affordable
housing units, under subsection 32 -74.4 below. Additional density bonus and/or
incentives may be available if a child care facility is also provided (Gov't. Code
§65915(h)); or
b. the applicant donates land for affordable housing, under Government Code
section 65915(8); or
C. the housing development is a condominium conversion that will provide
affordable housing, under Government Code section 65915.5 and DMC section
31 -7; or
d. a child care facility is proposed in a commercial or industrial project, under
Government Code section 65917.5.
Neither the granting of a density bonus nor the granting of an incentive, in and or itself,
requires a general plan amendment, zoning change, or other discretionary approval.
(Gov't. Code §65915 (g)(1) (2) and (k).) All density calculations resulting in fractional
units shall be rounded up to the next whole number. (Gov't. Code §65915 (f)(5), (g)(2.)
32 -74.4 - Minimum requirements; Calculation, Continued affordability.
a. Density bonus - minimum requirement (target units). The city shall grant a density
bonus to an applicant for a housing development of five or more units who seeks
a density bonus and agrees to construct at least one of the following (Gov't. Code
§65915(b)):
(1) 10% of the total units of the housing development as target units
affordable to low- income households; or
(2) 5% of the total units of the housing development as target units affordable
to very low- income households; or
(3) A senior citizen housing development of 35 units or more. (Defined in
California Civil Code section 51.3(b)(4); or
(4) 10% of the total units of a newly constructed condominium project or
planned development as target units affordable to moderate - income
households. (Govt. Code § 65915(b).)
An inclusionary unit or second unit under DMC Section 32 -73 counts toward the
total of target units.
b. Density bonus - calculation of bonus units. The maximum amount of density bonus
to which an applicant is entitled varies according to (1) the type of qualifying
DENSITY BONUS ORDINANCE PAGE 4 OF ORDINANCE NO. 2014 -07
housing under subsection a above and (2) the amount the percentage of
affordable housing exceeds the minimum percentages set forth in subsection a
above. The specific calculations are set forth in Government Code section 65915
(f).
Unit calculations do not need to be based on individual subdivisions or parcels.
If the density bonus units are located separate from the restricted occupancy
units, such project groups shall, unless otherwise authorized by the Town, be
contiguous and shall be developed simultaneously with the development of the
restricted occupancy units.
C. Continued affordability. An applicant shall agree to and the Town shall ensure:
(1) the continued affordability of a low- and very -low income units for a
period of 30 years or longer (Gov't. Code § 65915(c);
(2) owner - occupied units are available at an affordable housing cost;
(3) the initial occupant of a moderate income unit in a common interest
development is a person or family or moderate income and that the units
are offered at an affordable housing cost;
Whenever applicable or appropriate, the applicant shall enter into an agreement
acceptable to the Town Attorney to assure the continued affordability, under
DMC subsection 32 -74.9.
32 -74.5 - Incentives.
a. Number of incentives. An applicant for a density bonus may submit a proposal for
specific incentives or concessions. In addition to the types of incentives defined
in subsection 32 -74.4, the Town Council may reduce or waive Town - established
fees.
The applicant may receive the following number of incentives or concessions
(Gov't. Code §65915(d)(2)):
Number of
Type of project
incentives
1
at least: 10% of total units for lower income households; 5%
for very low income households, or 10% for persons and
families of moderate income in a common interest
development.
2
at least: 20% of total units for lower income households; 10%
for very low income households, or 20% for persons and
families of moderate income in a common interest
development.
3
at least: 30% of total units for lower income households; 15%
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for very low income households, or 30% for persons and
families of moderate income in a common interest
development.
When a developer requests one or more incentives, he or she shall submit a
project financial report (pro forma) along with the application for the project in
order to evaluate the financial need for the incentive(s). At the developer's cost,
the Town may retain a consultant to review the financial report. (If the developer
is a nonprofit organization, the Town Council may elect to pay the cost of the
consultant.)
b. Findings required for denial. The Town shall grant the requested incentive or
concession unless the Town makes a written finding based upon substantial
evidence that the incentive or concession:
(1) is not required to provide for affordable housing costs or for rents to be set
at the specified levels; or
(2) would have a specific adverse impact upon public health and safety or the
physical environment, or on any property listed in the California Register
of Historical Resources, and for which there is no feasible method to
satisfactorily mitigate or avoid the impact without rendering the
development unaffordable to low and moderate income households.
"Specific adverse impact" means a significant, quantifiable, direct, and
unavoidable impact, based on objective, identified written public health or
safety standards, policies, or conditions. (Gov't. Code §65589.5.)
(3) would be contrary to state or federal law. (Gov't. Code §65915(d).)
32 -74.6 - General Requirements.
a. Continued affordability.
(1) Restricted occupancy units in projects receiving a density bonus shall
remain affordable for a minimum of 30 years, or a longer period if
required by the construction or mortgage financing assistance program,
mortgage insurance program, or rental subsidy program. (Gov't. Code
§65915(c).)
(2) Requirements for restricted occupancy units shall be established as
conditions of project approval. Compliance with the conditions of this
section shall be evidenced by an affordable housing agreement between
the developer and the Town Manager, completed and recorded on the
property to each affected unit before issuance of a building permit. It shall
run with the land.
(a) The affordable housing agreement shall indicate the qualification
criteria for the target households for the restricted occupancy
units (e.g., very low income household, senior household, etc.),
the intended household type (i.e., sale or rental restricted
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occupancy units), the number of restricted occupancy units and
their corresponding number of bedrooms; standards for
maximum qualifying household incomes for restricted occupancy
units with affordability restrictions; standards for maximum rents
or sales prices for restricted occupancy units with affordability
restrictions; standards for qualifying for occupancy of senior or
handicapped restricted occupancy units; party /process
responsible for certifying qualifications of households which
occupy restricted occupancy units; construction scheduling, how
vacancies will be marketed and filled; restrictions and
enforcement mechanisms binding on property upon sale or
transfer; maintenance provisions; and any other information as
required by the Town to comply with the conditions of approval
for the project. If the agreement is an equity sharing agreement, it
shall conform to the requirements of Government Code section
65915(c)(2). (See also Gov't. Code §65916, 65917.)
(b) The affordable housing agreement shall include a provision which
allows the Town of Danville to assign its authority to regulate
and enforce the agreement to the Contra Costa County Housing
Authority, a nonprofit housing agency or other similar entity.
3. For -sale restricted occupancy units shall not be rented unless specifically
authorized by the Town and a new affordable housing agreement
executed and recorded against the property.
b. Priority for Danville residents or employees. Households with Danville residents
who meet the qualifications for occupancy of restricted units will have first
preference for restricted occupancy units; second preference will be given to
households with Danville employees who meet the qualifications for occupancy
of restricted units; third preference shall be given to all other eligible households.
A Danville resident or employee (or spouse) is one who has lived or worked in
Danville for the year immediately preceding the occupancy of the affordable
unit.
c. Timing and location of units.
(1) Units in a project and phases of a project shall be constructed concurrently
with, or prior to, the construction of units without occupancy restrictions.
(2) Units shall be provided as follows:
(a) Restricted occupancy units shall be dispersed throughout the
project.
(b) Restricted occupancy units are not required to represent the
predominant unit type in the project. Such as, but not limited to,
locating affordable attached duet units on corner lots in a primarily
single family development.
(c) The exterior design and character of the restricted occupancy units
shall be substantially consistent with the units without occupancy
restrictions in the project. There may be a reduction of interior
DENSITY BONUS ORDINANCE PAGE 7 OF ORDINANCE NO. 2014-07
amenities as may be necessary to attain affordability of the
restricted occupancy units.
d. Limitations on Tozcln. The Town may not:
(1) apply a development standard that will have the effect of physically
precluding the construction at the desired density (Gov't. Code
§65915(e)(1).);
(2) require parking (other than handicapped and guest parking) to exceed
one space for one bedroom, two spaces for two -three bedrooms, or 2.5
spaces for four or more bedrooms. (Gov't. Code §65915(p).)
32 -74.7 - Violation - Penalty.
It is unlawful for any person, firm, corporation, partnership or other entity to violate
any provision or fail to comply with any of the requirements of this section. A violation
of any of the provisions or failing to comply with any of the requirements of this section
shall constitute a misdemeanor; except that, notwithstanding any other provisions of
this Code, any such violation constituting a misdemeanor under this section may, at the
discretion of the enforcing authority, be charged and prosecuted as an infraction.
32 -74.8 - Enforcement.
a. The Town Manager is hereby designated the enforcing authority of this section.
b. The provisions of this section shall apply to all agents, successors and assigns of
developer. No building permit or occupancy permit shall be issued, nor any
development approval be granted, which does not meet the requirements of this
section. The Chief Building Official may suspend or revoke any building permit
or approval upon finding a violation of any provision of this section.
C. In the event it is determined that rents in excess of those allowed by operation of
this section have been charged to a tenant residing in a restricted occupancy
rental unit, the Town may take the appropriate legal action to recover, and the
rental unit owner shall be obligated to pay to the tenant (or to the Town in the
event the tenant cannot be located), any excess rent charges.
32 -74.9 - Appeals.
Any person aggrieved by any action or determination of the Town Manager under this
section may appeal such action or determination to the Town Council as provided for in
the Municipal Code.
SECTION 3. CODIFICATION. Section 2 of this ordinance shall be codified in the
Danville Municipal Code.
SECTION 4. PUBLICATION AND EFFECTIVE DATE. The City Clerk shall have a
summary of this ordinance published twice in a newspaper of general circulation, once
DENSITY BONUS ORDINANCE PAGE 8 OF ORDINANCE NO. 2014 -07
within five (5) days before its adoption and once within 15 (fifteen) days after adoption.
This ordinance shall become effective 30 days after adoption.
SECTION 5. SEVERABILITY. If any section, subsection, sentence, clause or phrase of
this ordinance is for any reason held to be invalid, such decision shall not affect the
validity of the remaining portions of the ordinance. The Danville Town Council hereby
declares that they would have adopted the ordinance, and each section, subsection,
sentence, clause, or phrase thereof, irrespective of the fact that one or more sections,
subsections, sentences, clauses or phrases was declared invalid.
The foregoing ordinance was introduced on September 16, 2014 and approved and
adopted by the Danville Town Council at a regular meeting held on October 7, 2014, by
the following vote:
AYES Storer, Doyle, Arnerich, Morgan, Stepper
NOES: None
ABSTAIN: None
ABSENT: None
1VIAYOR
APPROVED AS TO FORM:
1 '1"J.�e I 3
CITY ATTORNEY
ATTEST:
CITY CLERK
CLERK'S CERTIFICATE
I, Marie Sunseri, City Clerk of the Town of Danville, hereby certify that the foregoing is
a true and accurate copy of Ordinance No. 2014 -07 of said Town and that said
ordinance was published according to law.
Dated:
DENSITY BONUS ORDINANCE PAGE 9 OF ORDINANCE NO. 2014 -07
Town of Uanville