HomeMy WebLinkAbout91-24 - Density Bonus and other Incentives for the Production of Affordable and Senior HousingORDINANCE NO. 91-24
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COSTA
MESA, CALIFORNIA AMENDING TITLE 13, CHAPTER II, ARTICLE
26 OF THE COSTA MESA MUNICIPAL CODE TO ADD REGULATIONS
AND PROCEDURES PERTAINING TO DENSITY BONUS AND OTHER
INCENTIVES FOR THE PRODUCTION OF AFFORDABLE AND SENIOR
HOUSING.
The City council of the City of Costa Mesa does hereby ordain as
follows:
SECTION 1•
The City Council of the City of Costa Mesa finds and declares as
follows:
WHEREAS, the California Government Code Section 65915 permits
a developer of a residential project of five (5) of more units on
a specific site to request that the project be granted a density
bonus and other incentive or concession, or equivalent incentives
and concessions for the purpose of providing affordable housing for
very low income or low income households or for qualifying (senior)
residents; and
WHEREAS, the California Government Code Section 65915 requires
that local jurisdictions adopt an ordinance which establishes the
procedure for implementing the density bonus/incentive program;
WHEREAS, a penalty clause is necessary to ensure that
affordable units are maintained as affordable units for the
requisite term as set forth in a recorded agreement;
ACCORDINGLY, the City Council of the City of Costa Mesa hereby
amends Title 13 of the Costa Mesa Municipal Code as hereinafter set
forth:
SECTION 2•
Article 26 of Chapter II of Title 13 of the Costa Mesa Municipal
Code is hereby amended to read as follows:
°Article 26. Density Bonuses and Other Incentives.
SEC. 13-397. PURP0SE.
To provide incentives for the production of lower income and
senior housing in compliance with Government Code Section
65915.
SEC. 13-398. DEFINITIONS.
Concessions shall mean the reduction in site development
standards, zoning code requirements, development fees or
dedication requirements which result in identifiable cost
reductions.
Density Bonus shall mean a minimum increase of 25% over the
allowable residential dwelling unit density as specified by
the zoning classification at the time of application.
Housing Proiect shall mean new development or conversion of
existing residential buildings of five (5) or more residential
dwelling units.
Incentives in -lieu of Density Bonus shall mean incentives of
equivalent financial value based upon the land cost per
dwelling unit(s) of Density Bonus.
Lower Income Household shall mean households as defined in
Section 50079.5 of the California Health and Safety Code.
Lower Income Rent shall mean rent affordable to lower income
households, not to exceed 30% of 60% (i.e. 18%) of the area
median income as adjusted for household size and as defined in
Section 56915 of the California Government Code.
N
Oualifvino Resident shall mean resident as defined in Section
51.2 of the California Civil code, i.e. 62 years of age or
older, or 55 years of age or older in a senior citizens
housing development consisting of at least 150 dwelling units.
Very Low Income Household shall mean households as defined in
Section 50105 of the California Health and Safety Code.
Very Low Income Rent shall mean rent affordable to very low
income households, not to exceed 30% of 50% (i.e. 15%) of the
area median income as adjusted for household size and as
defined in Section 65915 of the California Government Code.
BEC. 13-399. QUALIFIED PROJECT.
To qualify for a density bonus, concessions or other
incentives, the developer of a housing project of at least
five (5) units, must agree in a written agreement, acceptable
to the City Attorney, to construct a minimum of 20% of the
total units of the housing project as affordable and reserved
for lower income households, a minimum of l0% of the total
units of the housing project as affordable and reserved for
very low income households, or a minimum of 50% of the total
units of the housing project reserved for qualified (senior)
residents. The designated senior units shall be subject to
low income affordable limits.
Any density bonus shall not be included when determining the
number of housing units which is equal to 10%, 20% or 50% of
the total units of the housing project.
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SEC. 13-400. DENSITY BONUS CONCESSIONS AND INCENTIVES.
(a) Upon application by a developer as provided in Section
13-403, the City shall offer a density bonus to qualified
low, very low income, or senior housing projects provided
the density bonus is consistent with the General Plan.
Where a density bonus would cause the housing project to
exceed the General Plan dwelling unit density for
qualified low or very low income (non -senior) projects,
then the City shall offer in -lieu incentives or
concessions which may include, but not be limited to, the
following:
(1) A partial density increase up to the General Plan
density.
(2) Reduction or waiver of planning fees.
(3) Reduction or waiver of building plan check and
permit fees.
(4) Accelerated plan check by City staff.
(5) Reduction or waiver of street dedication or
infrastructure improvements excluding those
infrastructure improvements required by the Costa
Mesa Sanitary District and Mesa Consolidated Water
District.
(6) Reduction or waiver of in -lieu park fees.
(7) Reduction in parking requirements for the
affordable senior units.
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(8) Rezoning to a higher density or to mixed use.
Where City Council finds that the adoption of a
change in zone classification to increase density
for the subject property within sixty (60) months
prior to the Density Bonus or Incentive Application
will be considered to be equivalent in value to
State mandated incentives and qualifies as an
incentive for purposes of this Article, such change
in zone classification shall be deemed an incentive
for the purposes of this Article.
(9) Modification or reduction of development standards
up to a maximum reduction of 20%.
(10) Direct financial aid including, but not limited to
redevelopment set-aside funding, Mello -Roos
financing of infrastructure improvements, or
community Development Block Grant funding (if
available).
(b) Any reduction, waiver, or modification to development
standards of Title 13 of this Code shall be within the
parameters listed above, provided however, that any
density bonus increase up to the General Plan density
shall not be subject to a separate planning action or
variance findings. The value of each incentive will vary
from project to project, therefore in -lieu incentives
shall be determined on a case-by-case basis.
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SEC. 13-401. CONCESSIONS OR INCENTIVES IN EXCESS OF DENSITY
BONUS.
(a) All qualified housing projects as set forth in Section
13-399 shall be given priority in processing.
(b) In addition to density bonus or equivalent in -lieu
incentives, the City may offer at least one additional
concession or incentive. Possible additional concessions
or incentives include, but not limited to, the incentives
or concessions set forth in Section 13-400(a).
SEC. 13-402. TERM AND TENURE OF DENSITY BONUS DWELLING UNITS.
(a) The 108 very low income dwelling units, 208 low income
dwelling units, or 508 for qualifying residents (seniors)
dwelling units provided in compliance with this Title and
Government Code Section 65915 shall be designated and
maintained as affordable or senior dwelling units for a
period of either ten (10) or thirty (30) years. The ten
(10) year affordable designation shall be required if the
City only grants a density bonus. If the City grants a
density bonus (or its equivalent) plus additional
incentives or concessions, the affordable designation
shall be required for thirty (30) years. This unit
designation term shall be designated pursuant to a
written and executed Density Bonus/Incentive Agreement
and Land Use Restriction Covenant which shall be recorded
for the development site prior to issuance of building
permits.
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(b) The units designated as affordable to very low income
households, low income households, or designated for
senior households, shall be maintained as rental units,
unless the developer by application pursuant to Section
13-403 requests ownership units and proposes in writing
an affordable maintenance program that is acceptable to
the City.
(c) The designated units shall represent a proportionate mix
of dwelling unit square footage and number of bedrooms
per unit, of the entire housing project.
BEC. 13-403. DENSITY BONUS OR INCENTIVE APPLICATION AND
REVIEW PROCESS
(a) Preliminary application: A developer of a qualified
housing project may submit a preliminary application
pursuant to this Article prior to the submittal of any
formal requests for approvals for a housing project
development.
within 30 days of receipt of the application by the
Development Services Department, the Department shall
provide to an applicant, the procedures for compliance
with this Article, a copy of this Article and related
policies, the pertinent sections of the California Codes
to which reference is made in this article and a density
bonus of incentives (Conditional Use Permit) application.
(b) Application: The review of an application for a density
bonus or incentive request shall be processed as a
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conditional use permit in accordance with the provisions
Of Aiticle 23 of this Chapter. If the application
involves a request for direct financial incentives, then
any action by the Planning Commission on the application
shall be advisory only, and the City Council shall have
the authority to make the final decision on the
application. Appropriate fees, as established by
resolution of the City Council, shall accompany the
application.
(c) Submittal: The completed application shall be known as
the Density Bonus or Incentive Application and shall
include the following information.
(1) written Documents:
A. A legal description of the total site proposed
for development including a statement of
present ownership and present and proposed
zoning.
B. A letter signed by the present owner stating
how the project will comply with Government
Code Section 65915 and stating what is being
requesting of the City, i.e. Density Bonus
and another concession or incentive or
equivalent in -lieu incentives.
C. A pro -forma for the proposed project to
justify the requested concession or incentive
and to establish the land valuation per
dwelling unit of bonus units.
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D. A management plan for complying with the
maintenance of the designated units regarding
income qualification documentation and rent or
sale price documentation.
(2) Site plan and supporting plans per the Conditional
Use Permit submittal requirements.
(d) Review:
(1) The application shall be set for review by the
Planning Commission at a scheduled public hearing.
Prior to the scheduled public hearing, the
Development Services Director and/or his staff
shall evaluate the request and report its findings
and recommendation to the Planning Commission in
writing. The review and recommendation shall be
based upon compliance with this Article and with
revised City Council Policy N0.500-3 regarding
Density Bonus or Incentive Applications.
(2) The Planning Commission, after reviewing the
request and receiving public testimony shall
approve or approve with modifications, provided the
density bonus is consistent with the General Plan
and this Article, or deny the request if unable to
reach an agreement with the applicant regarding the
appropriate incentives. If the request involves
direct financial incentives, then the Planning
Commission action on the application shall be
advisory only with the City Council making the
final decision.
G.
(3) The decision of the Planning Commission or City
Council shall be based upon whether the requested
density bonus and incentive or concessions or in -
lieu incentives constitute the minimum amount
necessary to provide housing at the target rents or
sale prices.
SECTION 3•
Severability. If any chapter, article, section, subsection,
subdivision, sentence, clause, phrase or portion of this ordinance,
or the application thereof to any person, is for any reason held to
be invalid or unconstitutional by the decision of any court of a
competent jurisdiction, such decision shall not affect the validity
of the remaining portions of this ordinance or its application to
other persons. The City Council hereby declares that it would have
adopted this ordinance and each chapter, article, section,
subsection, sentence, clause, phrase, or portion thereof,
irrespective of the fact that any one or more subsections,
subdivisions, sentences, clauses, phrases, or portions of the
application thereof to any person be declared invalid or
unconstitutional. No portion of this ordinance shall supersede any
local, State, Federal law or regulation or codes dealing with life
safety factors.
SECTION 4•
This Ordinance shall take effect and be in full force thirty
(30) days from and after the passage thereof, and prior to the
expiration of fifteen (15) days from its passage shall be published
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once in the ORANGE COAST DAILY PILOT, a newspaper of general
circulation, printed and published in the City of Costa Mesa or, in
the alternative, the City Clerk may cause to be published a summary
of this Ordinance and a certified copy of the text of this
Ordinance shall be posted in the office of the City Clerk five (5)
days prior to the date of adoption of this Ordinance, and within
fifteen (15) days after adoption, the City Clerk shall cause to be
published the aforementioned summary and shall post in the office
of the City Clerk a certified copy of this Ordinance together with
the names of the members of the City Council voting for and against
the same.
PASSED AND ADOPTED this 1�' day of , 19W.
ATTEST:
City Clerk of the City of
Costa Mesa
APPROVED AS TO FORM:
C�i4� I- 36-0q
ity Attorney
PPI
Mayor Iff
the City of Costa Mesa
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF COSTA MESA )
I, EILEEN P. PHINNEY, City Clerk and ex -officio Clerk of the
City Council of the City of Costa Mesa, hereby certify that the
above and foregoing Ordinance No. q1- was introduced and
considered section by section at a regular m sting of said City
Council held on the � day of �, 19�, and
thereafter passed and adopted as a who at a rggular meeting of
said Council held on the 16eA day of �j��yj,/ , 19V, by
the following roll call vote:
AYES: COUNCIL MEMBERS: lx/HM.c µ.e.}LOy.+I "I 47vi'I
NOES: COUNCIL MEMBERS: hf 4-
ABSENT: COUNCIL MEMBERS: `Y�
IN WITNESS WHEREOF, I have hereby sep my hand
Seal of the City of Costa Mesa this day of
19fl. 7'
of the City Council of the
of Costa Mesa
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