HomeMy WebLinkAbout2012/12/11 Item 24CITY COUNCIL
AGENDA STATEMENT
`~°' ~;' "` ~~ CITY OF
CHULA VISTA
DECEMBER 11, 2012, Item
ITEM TITLE: A. PUBLIC HEARING: CONSIDERATION OF A CITY
WIDE AFFORDABLE HOUSING INCENTIVE
PROGRAM
B. ORDINANCE OF THE CITY OF CHULA VISTA
" AMENDING TITLE 19 OF THE CH_ ULA VISTA
MUNICIPAL CODE BY THE ADDITION OF CHAPTER
19.90 TO ESTABLISH REQUIREMENTS FOR THE
RESERVATION AND AFFORDABILITY OF HOUSING
UNITS FOR VERY LOW, LOWER AND MODERATE
INCOME HOUSEHOLDS AND SENIOR CITIZENS IN
RESIDENTIAL PROJECTS UNDER A CITY WIDE
AFFORDABLE HOUSING INCENTIVE PROGRAM
SUBMITTED BY: ASSISTANT CITY MANAGER
DEVELOPMENT SERV ES DIRECTOR
REVIEWED BY: CITY MANAGE
4/STHS VOTE: YES NO X
SUMMARY
The proposed amendments to Title 19 (Zoning Ordinance) of the City of Chula' Vista
Municipal Code implement state-mandated density bonus provisions for affordable and senior
citizen housing, pursuant to Section 65915 of the California Government Code (State Density
Bonus Law). The State of California mandates that all local jurisdictions must grant a density
bonus and additional incentives to housing developments of five or more units, if they include
a specified percentage of affordable or senior citizen housing.
ENVIRONMENTAL REVIEW
The addition of the Affordable Housing Incentives section of the Zoning Code will not result in
any physical development in and of itself, -and thus. will not have an impact on the
environment. Further, any future development which utilizes the density bonus ordinance will
require environmental review specific to the proposed site.
Therefore, the Affordable Housing Incentives ordinance is exempt from the California
Environmental Quality Act (CEQA) based on CEQA Guidelines Section 15061 (b)(3), which
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states that where it can be seen with certainty that there is no possibility that an activity has the
potential to have a significant effect on the environment that it is not subject to CEQA.
RECOMMENDATION
City Council hold the public hearing and adopt the Ordinance.
BOARDS/COMMISSION RECOMMENDATION
On November 14, 2012, the Planning Commission held a public hearing and recommended
that the City Council adopt the Ordinance.
DISCUSSION
State Affordable Housing Laws
In order to increase the supply of "affordable housing units" throughout the State, the State of
California adopted an Affordable Housing Law (Government Code Section 65589.5) and a
Density Bonus Law (Government Code Section 65915) in 1979. Many subsequent
amendments were made in the years that followed. The most significant amendments went
into effect in January 2005 (SB 1818). Density Bonus Law provides financial incentives - i.e.,
additional market rate units and modification of development standards - to developers if they
build a specified amount of affordable housing. Affordable housing projects can be denied for
much the same reasons as other projects, such as inconsistency with the zone and an inability
to make the necessary findings.
State Density Bonus Law
State density bonus law originated as a tool to encourage developers to provide affordable
housing. For a developer, it may become more financially feasible to provide affordable units
because they are able to construct additional market rate housing units as a result of a density
bonus together with additional concessions or incentives.
With the amendments of 2005, density bonus law directs jurisdictions to implement its
provisions through local codes. The City's proposed Ordinance closely follows the law and the
actual language used. The City's area of discretion under the provisions of State law is very
"limited, and lies in the process for granting of a density bonus and concession or incentive and
in mechanisms to assure continued affordability of affordable units developed.
In summary, jurisdictions are required to grant a density bonus and incentives and concessions
to residential development projects which contain:
1. 10 percent of total units for low income households;
2. 5 percent of total units for very low income households;
3. specified units for senior citizens; or
4. 10 percent of total units in a common interest development for families of moderate
income.
The specific density bonus allowed is detailed in the law, and the bonus increases as the
number of affordable units increase. Affordable rental units provided must remain affordable
for at least 30 years.
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DECEMBER 11, 2012, Item ~~
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A concession or incentive can include a reduction in site development standards or zoning code
requirements, approval of mixed use development as part of the housing development, or other
proposals made by a developer which would result in cost reductions. A developer is eligible
for at least one concession or incentive, with additional concessions or incentives allowed as
the percentage of affordable units increase.
State law also includes detailed provisions which allow for a density bonus in return for land
donation, condominium conversions with affordable units, and development of child care
facilities within an affordable housing project. These provisions are similar to those for new
residential construction.
It is incumbent upon .the City to approve a request for a density bonus and concessions or
incentives if the applicant meets the requirements of State Law. In denying requests for
concessions or incentives; the applicant has the presumption of validity and the City has the
burden of proof to justify the denial by making written findings that such concession or
incentive (see Gov. Code § 65915(d)):
1. Is not needed to provide affordable housing;
2. Would have a specific adverse impact upon health or safety, the environment, or a
historic resource; or
3. Is contrary to state or federal law.
Applicants may initiate judicial proceedings if the City refuses to grant requests in violation of
State law. If the City is unsuccessful in defending the suit, the plaintiff is entitled to reasonable
attorney's fees and the costs of the suit (see Gov. Code § 65915(d)(1)(C)(3)).
General Plan Consistency
?s required by State law, jurisdictions are to implement its provisions through local
ordinances. Therefore, the City's General Plan Housing Element, adopted in October 2006,
establishes the following policy to adopt the Density Bonus Ordinance.
H-7.4.1 Amend Title 19 of the Chula Vista Municipal Code to authorize a density bonus
and/or other incentives for new housing developments and condominium
conversions providing the required affordable housing as specified in the
California Government Code.
Adoption of the proposed ordinance would be implementing State law and a policy identified
within the General Plan.
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DECEMBER 11, 2012, Item 2~
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Ordinance Summary
The ordinance is proposed to amend Municipal Code Title 19 (the "Zoning Code" or "Zoning
Ordinance") in order to establish procedures for processing density bonus applications; outline
eligible projects and specify the density bonus available, identify incentives and concessions
available to developers utilizing density bonus provisions; and specify regulatory agreement
procedures to ensure long term affordability of affordable units consistent with State law. The
following summarizes the main aspects of the proposed ordinance.
Definitions
The proposed density bonus section includes a list of definitions specific only to the density
bonus chapter. There are many terms specific to the density bonus law. Including definitions
in this section makes the chapter more user friendly.
Thresholds for Density Bonus -
Density bonus law requires local governments to approve additional market rate units, over and
above what the City's Zoning Ordinance would otherwise allow, for projects that provide a
specified amount of "affordable units." The density bonus law and Chula Vista's proposed
ordinance include tables specifying the density and/or Floor Area Ratio (FAR) bonus and
concessions/incentives available with a specified percentage of affordable units. Tables are
.included for each affordable housing category: very low, low, and moderate income
households. If a developer elects to construct a senior housing development, the bonus is 20
percent. Tables are also included to address a specific density/FAR bonus allowed for land
donations.
Qualifying Set-Asides for Density Bonuses
Target Group Housing Set-Aside Density/FAR Bonus
Very Low Income 50%Area Median Income (AMI) or less At least 5% At least 20%, up to 35%
Lower Income 80%AMI or less At least 10% . At least 20%, up to 35%
Moderate Income (condominium or planned development) At least 10% At least 5%, up to 35%
120%AMI or less
Senior Housing Development Per CA Civil Code 20%
51.12 & 51.3
Concessions or Incentives
An applicant for a density bonus may also request concessions or incentives. The number of
concessions or incentives increases as the percentage of affordable housing set aside increases.
State law spells out the following concessions or incentives: reduction in site development
standards or modification of zoning code requirements including reduced lot sizes and
setbacks, allowance of mixed use development as part of the housing development if it will
reduce costs and be compatible, and others proposed by the applicant which the City finds will
result in actual cost reductions (see Gov. Code § 65915(k)). The City shall grant the requested
concession or incentive unless they are: not needed to provide for affordable housing costs,
would have a severe adverse impact upon health and safety or the environment or on a historic
resource, or are contrary to state or federal law.
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DECEMBER 11, 2012, Item ~~
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Waiver or Modification of Development Standards
An applicant can request waivers or modifications of those applicable development standards,
if needed to implement the density bonus and incentiveslconcessions to which the developer is
entitled. Waivers and modifications of development standards are in addition to concessions or
incentives (see Gov. Code § 65915(e)(2)). Denials for requests for waivers or modifications of
development standards are based on the same criteria used to evaluate concessions or
incentives.
Parking Requirements
State law provides a maximum parking requirement that may be requested by a developer of an
affordable housing project. These standards not only apply to the affordable set-aside units, but
to the entire residential development. These standards are inclusive of handicapped and guest
parking and apply to rental and for-sale projects as follows (see Gov. Code § 65915(p)(1)):
Parking Ratio for Housing Development projects
Dwelling Unit Size State On-Site Parking Ratio City On-Site Parking Ratio
(CVMC 19.62.050(13))
0-1 bedrooms 1 space per unit 1:5 space per unit
2-3 bedrooms 2 spaces per unit 2 spaces per unit
4 or more bedrooms 2.5 spaces per unit 2.5 spaces per unit
Density Bonus for Land Donation, Condominium Conversion, Child Care
A density bonus may also be provided in situations where land is donated, where rental units
are converted. to ownership to include provisions for affordable units, and when child care
facilities are included in an affordable housing project (see Gov. Code § 65915(g) & (h)).
Donation of land must be at least one acre or enough to develop 40 units, and affordable units
must be for very low income households. The land must have a higher density land use
designation and zoning, be served by public facilities, be within the proposed development or
within one-quarter mile, and have a source of funding for the affordable units prior to approval
of the final map or development project. Land must be donated prior to approval of the final
map or development project.
A density bonus for a condominium conversion is allowed when an applicant who wants to
convert apartments to condominiums agrees to provide at least 33 percent of total units to low
and moderate income households. A bonus of 25 percent is allowed, and is to be provided
within the existing structures proposed for conversion. The proposed ordinance refers the
reader directly to State law to utilize these provisions (see Gov. Code Section 659.15.5).
~ CVMC 19.62.050(13) allows for 2 parking spaces per, unit for 4 or more bedroom units. Howevec, local
jurisdictions cannot in effect reduce State requirements. Therefore, for affordable housing projects, the City shall
implement parking requirements in accordance with Government Code 65915 (p).
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DECEMBER 11, 2012, Item ~y
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A housing development including a child care facility within or adjacent to the development
shall receive an additional density bonus and concession or incentive which contributes to the
economic feasibility of construction of the child care facility. The child care facility must be in
operation as long or longer than the time which the units will remain affordable. Children of
very low, low, and moderate income households shall attend the facility in equal proportion to
the affordable units required.
Streamlined Processing
One of the directives of the Housing Element policy was to simplify the City process for
development of affordable housing. Under the proposed ordinance, the density bonus request
would be reviewed and decided by the same reviewing authority that would hear the housing
development's other entitlements. For instance, if a project only requires conditional use
permit approval, the density bonus and request for concessions or incentives would be heard by
the Planning Commission. If a legislative action is also required, such as_ a rezoning is needed,
the City Council will be the review authority on all actions.
Affordable Housing Agreement
The proposed ordinance clarifies the process for ensuring continued affordability of identified
housing units in the density bonus process. The proposed ordinance outlines that an Affordable
Housing Agreement shall be executed before recordation of a final map or issuance of a
building permit. Provisions of the agreement are also outlined, including the location of the
affordable units in the project, construction of the affordable units, .and the identification of the
Housing Authority as the review and enforcement agent for the agreement.
.Expiration of Affordability Terms
In anticipation of the expiration of the affordability restrictions on a property, the proposed
ordinance requires the developer to provide tenants and the City with adequate noticing of the
expiration of the restrictions and an opportunity to preserve the affordability restrictions
consistent with Government Code Section 65863.10 through 65863.13.
Relationship to the Balanced Communities Affordable Housing Policy
The Balanced Communities Policy of the City's General Plan Housing Element requires
development projects of more than 50 housing units to provide 10 percent of total project units
affordable to low and moderate income households. Affordable housing units provided through
the Balanced Communities policy may be counted as an affordable unit to qualify for a density
bonus... By allowing affordable housing units provided to count toward both programs, the City
would provide incentives/concessions when financially necessary to achieve affordable
housing:
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DECEMBER 11, 2012, Item Z~
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DECISION MAKER CONFLICT
Staff has reviewed the decision contemplated by this action and has determined that it is not
site-specific and consequently, the 500-foot rule found in California Code of Regulations.
Section 18704.2(a)(1) is not applicable to this decision. Staff is not independently aware, nor
has staff been informed by any City Councilmember, of any other fact that may constitute a
basis for adecision-maker conflict of interest in this matter.
CURRENT YEAR FISCAL IMPACT
There is no current year fiscal impact with the adoption of this ordinance.
ONGOING FISCAL IMPACT
There is ongoing fiscal impact with the adoption of this ordinance.
ATTACHMENTS
1. Affordable Housing Incentives Ordinance
Prepared by: Leilani Hines, Principal Project Coordinator, Development Services Dept., Housing Division
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ATTACHMENT 1
ORDINANCE NO.
ORDINANCE OF THE CITY OF CHULA VISTA AMENDING
TITLE 19 OF THE CHULA VISTA MUNICIPAL CODE BY
THE ADDITION OF CHAPTER 19.90 TO ESTABLISH
REQUIREMENTS FOR THE RESERVATION AND
AFFORDABILITY OF HOUSING UNITS FOR VERY LOW,
LOWER AND MODERATE INCOME HOUSEHOLDS AND
SENIOR CITIZENS IN RESIDENTIAL PRO3ECTS UNDER A
CITY WIDE AFFORDABLE HOUSING INCENTIVE
PROGRAM
WHEREAS, California Government Code Section 65915 permits a Developer of a
residential project of five (5) or more units on a specific site to request that the project be granted
a density increase over the otherwise maximum residential density, unless a lesser percentage is
elected by the Developer, and provide at least one additional regulatory concession or incentive
(unless the City finds the additional incentive unnecessary) or other incentives of equal financial
value based upon land cost per dwelling for the purpose of providing affordable housing for
Very Low Income or Lower Income households or for qualifying (Senior) residents; and
WHEREAS, California Government Code Section 65915.5 permits a Developer
proposing to convert apartments to condominiums, to request that the project be granted a
density/Floor Area Ratio (FAR) bonus or other incentives of equal financial value based upon
land cost per dwelling, in exchange for reserving a specific percentage of the converted
condominium units for Lower or Moderate Income households; and
WHEREAS, California Government Code Sections 65915 and 65915.5 require that local
jurisdictions adopt an ordinance, which establishes the procedure for implementing the
density/FAR bonus/incentive program; and
WHEREAS, it is a policy of the Housing Element of the City's General Plan to prepare
an ordinance which implements State Government Code Sections 65915 and 65915.5; and
WHEREAS, on November 14, 2012, a duly noticed public hearing on the Affordable
Housing Incentive Ordinance was held before the City Planning Commission, which forwarded
its recommendations to the City Council; and
WHEREAS, the City Council has received and considered the agenda statement
accompanying the Affordable Housing Incentive Ordinance, the Planning .Commission
recommendations as well as public testimony.
NOW, THEREFORE, the City Council of the City of Chula Vista does hereby find,
determine and approve the proposed amendments to the City of Chula Vista Municipal Code to
implement the Affordable Housing Incentive Ordinance and does ordain as follows:
2 41 8
SECTION L• Title 19 of the Chula Vista Municipal Code is amended by the addition of Chapter
19.90 to read as follows:
Chapter 19.90
AFFORDABLE HOUSING INCENTIVES
Sections:
19.90.010 Purpose and Intent.
19.90.020 Definitions.
19.90.030 General Applicability.
19.90.040 Standard Incentives for New Residential Construction.
19.90.050 Alternative or Additional Incentives and Concessions for Housing
Developments.
19.90.060 Condominium Conversions.
19.90,070 Housing with Child Day Care Centers.
19.90.080 Affordable and Senior Housing Standards.
19.90:090 Affordability Tenure.
19.90.100 Application Requirements and Review.
19.90.110 Affordable Housing Agreement..
19.90.120 Agreement Processing and Administrative Fee.
19.90.130 Noticing and Procedural Requirements for Expiring Rental Restrictions.
19.90.140 First Right of Refusal to Purchase Rental Housing.
19.90.150 Savings Clause. ,
19.90.010 Purpose and Intent.
The purpose of this Chapter is to provide incentives for the production of affordable housing for
Very Low Income, Lower Income or senior households in accordance with Sections 65915 and
65917 of the California Government Code and any subsequent amendments or revisions thereto.
This Chapter is intended to materially assist the housing industry in providing adequate and
affordable shelter for all economic segments of the community and to provide a balance of
housing opportunities for Very Low Income, Lower Income, and senior households throughout
the city. It is intended that this Chapter facilitate the development of affordable housing
development projects and implement the goals, objectives and policies of the City of Chula Vista
General Plan Housing Element.
Nothing in this Chapter shall be construed to supersede or in any way alter or lessen the effect or
application of the California Coastal Act.
19.90.020 Definitions.
Terms used in this Chapter shall have their meaning defined in this Section:
A. "Affordable Housing'' as currently defined in section 50053 (b) and 500525 (b) of the Health
and Safety Code and any subsequent amendments or revisions.
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B. "Affordable Housing Agreement" means a legally binding agreement between the Developer
and the City to ensure that the requirements of this Chapter are satisfied. The agreement
shall establish at a minimum, the number of target units, their size, location, terms and
conditions of affordability and production schedule as further described in Section 19.90.110
of this Chapter.
C. "Allowable housing expense" as currently defined in 25 California Code of Regulations
Sections 6920 and 6918 and any subsequent amendments or revisions.
D. "Child day care center" shall have the same meaning as a day nursery as defined in Section
19.04.064 of this title.
E. "Common interest development" as currently defined in section 1351 of the Civil Code and
any subsequent amendments or revisions.
F. "Conversion" means the change of occupancy of a dwelling unit from owner-occupied to
rental or vice versa.
G. ``Density/FAR bonus" means an increase over the otherwise maximum allowable residential
density or permitted floor area ratio (FAR) on the site under the applicable zoning ordinance
and Land Use Element of the General Plan as of the date of the application.
H. "Density/FAR bonus units" means those residential units granted pursuant to the provisions
of this Chapter which exceed the otherwise Maximum Residential Density or permitted Floor
Area Ratio (FAR) for the development site.
I. "Developer" means any individual, firm, limited liability company, association, partnership,
political subdivision, government agency, municipality, industry, public or private
corporation, or any other entity whatsoever who applies to the City for the applicable permits
to undertake any construction, demolition, or renovation project within the City of Chula
Vista.
J. "Development standard" means site or construction conditions/requirements that apply to a
housing development pursuant to any ordinance, General Plan Element, Master or Specific
Plan, or other City requirement, law, policy, resolution or regulation.
K. "FAR" means the Floor to Area Ratio, which is a calculation of the total building square
footage divided by the lot square footage. FAR calculation methods are described more fully
in CVMC, Section 19.04.097.
L. "Housing development" means one or more groups of projects for residential units that are
the subject of one development application, consisting of the following:
1. The construction of five or more residential units;
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2. A subdivision or common interest development (commonly known as condominiums)
consisting of five or more residential units or unimproved lots; or
3. A project to either substantially rehabilitate and convert an existing commercial building
to residential use, or substantially rehabilitate an existing two-family or multiple-family
dwelling structure(s), where the result of rehabilitation would be a net increase in
available residential units.
M. "In-lieu incentive" means incentives offered by the City, which are of equivalent financial
value based upon the land cost per. dwelling unit(s), that are offered in-lieu of the
density/FAR bonus.
N. "Incentives or concessions" means -such regulatory incentives and concessions as stipulated
in Government Code Section 65915(k), to include, but not be limited to the reduction of site
development standards or zone code requirements,, approval of mixed use zoning in
conjunction with the housing project, or any other regulatory incentive which would result in
identifiable cost reductions to enable the provision of housing for the designated income
group or Qualifying (Senior) Residents.
O. "Low Income household" as currently defined in section 50079.5 of the Health and Safety
Code and any subsequent amendments or revisions.
P. "Maximum residential density" means the maximum number of residential units permitted
on the project site .as defined in the zoning ordinance, or the applicable Specific Plan or
Sectional Planning Area (SPA) Plan.
Q. "Moderate Income household" as currently defined in section 50093 of the Health and Safety
Code and any subsequent amendments or revisions.
R. "Non-restricted unit" means all units within the housing development that are not target
traits.
S. "Qualifying resident" as currently defined by Section 51.2 of the Civil Code and any
.subsequent amendments or revisions.
T. "Senior citizen housing" as currently defined by Sections 51.3 and 51.12 of the Civil Code
and any subsequent amendments or revisions.
U. "Target trait" means a residential unit within a housing development that will be offered for
rent or sale exclusively to and which shall be affordable to the designated income group or
qualified (senior) resident, as required by this Chapter.
V. "Total units" means the number of dwelling units in a housing development, excluding the
dwelling units added by the density/FAR bonus.
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W. "Very Low Income household" as currently defined in section 50105 of the Health and
Safety Code and any subsequent amendments or revisions.
19.90.030 General Applicability.
The provisions of this Chapter shall apply to a housing development of at least five units and
where the developer seeks and agrees to construct housing units to be restricted for occupancy by
very low, lower or moderate income households or senior citizens as set forth in Section
19.90.040.
19.90.040 Standard Incentives for New Residential Construction.
The decision-making body shall grant one density/FAR bonus, as specified in subsection B
of this Section, and/or incentives or concessions, as set forth in Section 19.90.050 of this
Chapter, when a developer of a housing development of at least five units seeks and agrees to
construct at least any one of the following.. The density/FAR bonus units shall not be
included when determining the total number of target units in the housing development.
Affordable housing units provided under the City's General Plan Housing Element Balanced
Communities Affordable Housing Policy may be counted toward the requirements of this
chapter.
1: Low Income Households. A minimum of ten percent (10%) of the total units of the
housing development as restricted and affordable to Low Income households;
2. Very Low Income Households. A minimum of five percent (5%) of the total units of the
housing development as restricted and affordable to very Low Income households;
3. Senior Citizens. A senior citizen housing development or mobile home park that limits
residency based on age requirements for housing for older persons pursuant to Section
798.76 or 799.5 of the California Civil Code. There is no requirement for the
affordability of the units for very low, low or moderate income households; or
4. Moderate Income Households. A minimum of ten percent (10%) of the total units in a
common interest development restricted and affordable to Moderate Income households,
provided that all units in the development are offered to the public for purchase.
L. Density/FAR Bonus. When a developer seeks and agrees to construct a housing
development meeting the criteria specified in subsection A of this Section, the decision-
making body shall grant adensity/FAR bonus subject to the following:
1. The amount of density/FAR bonus to which a housing development is entitled shall vary.
The density/FAR bonus may be increased according to the percentage of affordable
housing units provided above the minimum percentages established in subsection A of
this Section, but shall not exceed thirty-five percent (35%), except in accordance with
subsection D of this Section:
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a. Low Income Households. For housing developments meeting the criteria of
subsection (A)(I) of this Section, the density/FAR bonus shall be calculated as
follows:
Table A
Density/FAR Bonus for Housing Developments with Units
Affordable to Low Income Households
Percentage (°/") of Low
Income Units
(Minimum 10% required) Percentage (%) of Density/FAR
Bonus to be Granted
~Additiona11.5% bonus for each 1
increase above the 10% minimum)
10 20
11 21.5
12 23
13 24.5
14 26
15 27.5
16 29
17 30.5
18 32
19 33.5
20 35
b: Very Low Income Households. For housing developments meeting the criteria of
subsection (A)(2) of this Section, the density/FAR bonus shall be calculated as
follows:
Table B
Density/FAR Bonus for Housing Developments with. Units
Affordable to Very Low Income Households
Percentage (%) of Density/FAR
Percentage ("/o) of o be Granted
Bonus t
Very Low Income Units °
o
(Additiona12.5/o bonus for each 1 /o
(Minimum 5% required) increase above the 5% minimum)
5 20
6 22.5
7 25
g 27.5
9 30
6
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Table B
Density~AR Bonus for Housing Developments with Units
Affordable to Very Low Income Households
Percentage (%) of Percentage (%) of Density/FAR
Very Low Income Units Bonus t°o be Granted °
(Minimum S% required) ~AddIC1071a1 2.5/o bonus for each 1 /o
increase above the S% minimum)
10 32.5
11 35
c. Senior Citizens. For housing developments meeting the criteria of subsection
(A)(3) of this Section, the density/FAR bonus shall be twenty percent (20%).
d. Moderate Income Households in a Common Interest Development..For housing
developments meeting the criteria of subsection (A)(4) of this Section, the
density/FAR bonus shall be calculated as follows:
Table C
Density/FAR Bonus for Common Interest Developments with
Units Affordable to Moderate Income Households
Percentage (%) of
Moderate Income Units
(Minimum 10% required) Percentage (%) of Density/FAR
Bonus
~ to be Granted
(Additional 1 % bonus for each 1 °/a
increase above the 10% minimum)
10 5
11 6
12 7
13 8
14 9
15 10
17 12
18 13
19 14
2p 15
21. 16
22 17
23 18
24 19
25 20
26 21
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Table C
Density/FAR Bonus for Common Interest Developments with
Units Affordable to Moderate Income Households
Percentage (%) of
Moderate Income Units
(Minimum 10% required) Percentage (%) of Density/FAR
Bonus
to be Granted
.(Additional 1 % bonus for each 1
increase above the 10% minimum)
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
M. Density/FAR Bonus in Excess of 35%. In c
bonus in excess of that which is specified in
discretion, the requested density/FAR bonus,
ases where a developer requests adensity/FAR
this Section, the City Council may grant, at its
subject to the following:
1. The project meets the requirements of this Chapter.
2. The requested density/FAR increase, if granted, is an additional density/FAR bonus and
shall be considered an incentive, in accordance with Section 19.090.050 of this Chapter.
3. The City Council may require some portion of the additional density/FAR bonus units to
be designated as target units, at its discretion.
N: Fractional Units. When calculating the density/FAR bonus, or the required number of target
units, any calculations resulting in fractional units shall be rounded up to the next whole
number.
O. Granting a Lower Density/FAR Bonus. A qualified developer for a density bonus and/or
additional incentives and concessions pursuant to Section 19.076.040(A) of this Chapter may
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request and accept a lesser density/FAR bonus, including no increase in density and shall still
be entitled to those additional concessions or incentives as specified in Section 19.090.050.
No reduction will be allowed in the number of target units required.
P. Land Donation. When a developer for a tentative subdivision map, parcel map, or other
housing development approval donates land to the City to provide a minimum of ten percent
(10%) of the total units for a future housing development, as provided for in this subsection,
the developer shall be entitled to a density/FAR bonus for the entire development, as follows:
Table D
Density/FAR Bonus for Land Donation
Percentage (%) of
Very Low Income Units
(Minimum 10% required) Percentage (%) of Density/FAR
Bonus
to be Granted
(Additional 1 % bonus for each I
increase above the 10% minimum)
10 15
11 16
12 17
13 18
14 19
15 20
16 21
17 22
18 23
19 24
20 25
21 26
22 27
23 28
24 29
25 30
26 31
27 32
2g 33
29 34
30 35
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I. Additional Density/FAR Bonus. The density/FAR bonus stated in Table D above shall
be in addition to any increase mandated by subsection A of this Section. The maximum
combined density/FAR bonus of the mandated and the additional increase shall not
exceed thirty-five percent (35%). A developer shall be eligible for the density/FAR
bonus described in this subsection F only if all of the following conditions are met:
a. Date of Donations/Transfer. The land is donated and transferred to the City no
later than the date of approval of the final subdivision map, parcel map or housing
development application.
b. Feasibility of Development. -The developable acreage, development standards,
zoning-classification and General Plan land use designation of the land being
donated are sufficient to permit construction of the units affordable to Very Low
Income households in an amount not less than ten percent of the number of
residential units of the proposed development. _
c. Size of Land. The transferred land is at least one acre in size or of sufficient size
to permit development of at least forty units, has the appropriate zoning
classification and General Plan land use designation, and is or will be served by
adequate public facilities and infrastructure.
d. Discretionary Ap rn ovals. No later than the date of approval of the final
subdivision map, parcel map, or housing development, the transferred land shall
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,
except that the City may subject the proposed development to subsequent design
review to the extent authorized by subdivision (i) of Section 6583.2 of the
California Government Code if the design is not reviewed by the City prior to the
-time of transfer.
e. Continued Affordability. The transferred land and the affordable units shall be
subject to a deed restriction ensuring ,continued affordability of -the units
consistent with Section 19.90.090 of this Chapter, which shall be recorded on the
property at the time of dedication.
' £ Transfer to Housing Developer. The land is transferred to the City onto a housing
developer approved by the City. The City may require the developer to identify
and transfer the land to the developer.
g. Location of Land. The transferred land shall. be within the boundary of the
proposed development or, if the City agrees, within one-quarter mile of the
boundary of the proposed development.
h. Financing. A proposed source of funding for the Very Low Income units shall be
identified not later than the date of approval of the final subdivision map, parcel
map, or residential development permit.
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2. Condition of Development. Nothing in Section 19.90.040 (F) shall be construed to
enlarge or diminish the authority of the City to require a developer to donate land as a
conditiomof development.
19.90.050 Alternative or Additiona- Incentives and Concessions for Housing
Developments.
A. When a developer requests adensity/FAR bonus and/or incentives or concessions pursuant to
Section 19.90.040(A) of this Chapter, the decision-making body shall grant incentives or
concessions, subject to the following:
I. Number of Incentives/Concessions.
a. The developer shall receive the following number of .incentives or concession
based upon the minimum percentage of total units to be restricted as target units:
Table E
Number of Incentives/Concessions
Number of Incentives/ Percentage (%) of
Concessions Target Units
(Minimum required)
1 Incentive/Concession 5% for Very Low Income households
10% for Lower Income households
10% for Moderate Income persons or
families in a common interest
development
2 Incentives/Concessions 10% for Very Low Income households
20% for Lower Income households
20% for Moderate Income persons or
families in a common interest
development
3 Incentives/Concessions 15% for Very Low Income households
30% for Lower Income households
30% for Moderate Income persons or
families in a common interest
development
4 or more At the discretion of the decision-making
Incentives/Concessions authority.
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2. Incentives/Concessions. An incentive or concession may include any of the following:
a. Development, Design, and Zoning Code Requirements. A reduction or waiver of
site development standards, modification of zoning code, or architectural design
requirements that exceed the minimum building standards approved by the
California Building Standards, including, but not limited to, a reduction in
minimum lot size, setback requirements, and/or in the ratio of vehicular parking
spaces that would otherwise be required. Any waiver or reduction from the
applicable development standards that is necessary to implement the density and
incentives/concessions to which the developer is entitled under this subsection (A)
shall not serve to reduce or increase the number ofincentives/concessions.
b. Mixed Use Development. Approval of mixed use residential development in
areas not permitted if: 1) commercial, office, industrial or other land uses will
reduce the cost of the housing development; and ii)_ the commercial, office,
industrial or other land uses are compatible with the housing development and the
existing or planned future development in the area where the project will be
located.
a Excess Density/FAR Bonus. A density/FAR Bonus in excess of more than that
which is specified in Section 19.90.040(B)(1) and in compliance with Section
19.90.040(C).
d. Other. Other regulatory incentives or concessions proposed by the developer that
result in identifiable, financially sufficient and actual cost reductions that
contributes to the economic feasibility of the project.
e. Financial Incentives. The City Council may, but is not required to, provide direct
financial incentives, including. direct financial aid in the form of a loan or grant,
the provision of publicly owned land, or the waiver of fees or dedication
requirements.
3. Coastal Zone. Any housing development located within the coastal zone and processed
pursuant to this Chapter shall be consistent' with all certified Local Coastal Program
provisions, with the exception of density as approved by this Chapter.
19.90.060 Condominium Conversions.
A. Income Requirements. The decision-making body shall grant either: a density/FAR bonus
' or in-lieu incentives of equivalent financial value, as set forth in Section 19.90.050, to a
developer proposing to convert apartments to condominiums in compliance with Chapter
15.56 of this Title, and who agrees to provide the following:
1. Low or Moderate Income. A minimum of thirty-three percent (33%) of the total units of
the proposed condominium project as restricted and affordable to Low or Moderate
Income persons or families; or
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2. Low Income A minimum of fifteen percent (15%) of the total units of the proposed
condominium project as restricted, and affordable to Low Income households.
B. Density/FAR Bonus. For housing development projects meeting the criteria of subsection
(A) of this Section, the density/FAR bonus shall be twenty-five percent (25%) over the
number of apartments, to be provided within the existing structure or structures proposed for
conversion.
C. Calculating the Target Units. In determining the number of target units to be provided
pursuant-to the standards of this Section, the number of apartment units within the existing
structure or structures proposed for conversion shall be multiplied by the percentage of units
to be offered exclusively to the designated income group, as required by this Section
19.90.060(A). The density/FAR bonus units shall not be included when determining the total
number of target units required to qualify for a density bonus. _ _
D. Fractional Units. When calculating the density/FAR bonus, or the required number of target
units, any calculations resulting in fractional units shall be rounded up to the next whole
number.
E. Granting a Lower Density/FAR Bonus. In cases where adensity/FAR increase of less than
twenty-five percent (25%) is requested, no reduction will be allowed in the number of target
units required.
F. Other Incentives. For purposes of this Section, "other incentives of equivalent financial
value" shall not be construed to require the City to provide monetary. compensation, but may
include the waiver or reduction of requirements that might otherwise apply to the proposed
condominium conversion project at the sole discretion of the decision-making body.
G. Ineligibility. A developer proposing to convert apartments to condominiums shall be
ineligible for adensity/FAR bonus or in-lieu incentives under this Section if the apartments
proposed for conversion constitute a housing development for which adensity/FAR bonus or
in-lieu incentives were previously provided under this Chapter.
H. Affordable Housing Agreement as a Condition of Development. An Affordable Housing
Agreement for all condominium conversion proposals that request adensity/FAR bonus or
in-lieu incentives shall be processed concurrently with any other required project
development application (i.e., tentative maps, parcel maps, design review, conditional use
permits, etc.), and shall be made a condition of the discretionary permits, and execution of
such agreement shall be required prior to the issuance by the City of a building permit for the
development. Thee Affordable Housing Agreement shall be consistent with Section
19.90.110 of this Chapter.
I. No Requirement to Approve Conversion. Nothing in this Section shall be construed to
require that the City approve a proposal to convert apartments to condominiums.
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19.90.070 Housing with Child Day Care Centers.
A. When a developer proposes to construct a housing development that conforms to the
requirements of Section 19.90.040(A) of this Chapter, and includes a child day care center
that will be located on the premises of, as part of, or adjacent to, the project, the following
provisions shall apply:
1. Bonus or Incentive/Concession. The decision-making body shall grant either of the
following:
a. Density/FAR Bonus. An additional density/FAR bonus that is an amount of
square feet of residential space that is equal to or greater tltan the amount of
square feet in the child day care center; or
b. Incentive/Concession. An additional incentive or concession that contributes
significantly to the economic feasibility of the construction of the child day care
center.
2. Conditions of Approval. The decision-making body shall require, as a condition of
approval of the housing development, that the following occur:
a. Period of Operation for Child Care Center. The child day care center shall remain
in operation for a period of time that is as long as or longer than the period of time
during which the target units are required to remain affordable, pursuant to
Section 19.90.090 of this Chapter; and
b. Income Requirements. The percentage of children who are of Very Low, Lower,
or Moderate Income households shall be equal to or greater than the percentage of
dwelling units that are required for Very Low, Lower, or Moderate Income
'households pursuant to Section 19.90.040(A) of this Chapter.
3. Findings to Deny Bonus or Incentive/Concession. Notwithstanding any requirement of
this Section, the decision-making body shall not be required to provide an additional
density/FAR bonus, incentive or concession for a child day care center if it ftnds, based
on substantial evidence, that the community has an adequate number of child day care
centers.
19.90.080 Affordable and Senior Housing Standards.
A. Balanced Communities Affordable Housing Policy. Notwithstanding adeveloper's request
to process a development project pursuant to this Chapter, such project may be subject to the
City's General Plan Housing Element Balanced Communities Affordable Housing Policy and
any such implementing document that may be established and amended from time to time.
To the extent that the provisions of this Chapter and the Balanced Communities Affordable
Housing Policy and any implementing documents are in conflict, the provisions of this
Chapter shall prevail.
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B. Concurrent .Development. Target units shall be constructed concurrently with non-restricted
units unless both the City and the developer agree within the Affordable Housing Agreement
to an alternative schedule for development.
C. Location & Dispersal of Units. Target units and density/FAR bonus units should be built on
site (within the boundary of the proposed development) and when practical, be dispersed
within the housing development.
D. Off-Site Alternative. Circumstances may arise in which the public interest would be served
by allowing some or all of the designated target units to be produced and operated at a
development site different than the site of the associated housing development, also known as
an off-site alternative. Where the City and the applicant form such an agreement, both the
associated target and non-restricted units of the housing development shall be considered a
single housing development for the purposes of this Chapter, and the applicant shall be
subject to the same requirements of this Chapter pertinent to the target units to be provided at
an off-site alternative.
E. Bedroom Unit Mix. The housing development shall include a mix of target units (by number
of bedrooms) in response to the affordable housing demand priorities of the City as may be
identified within the City's Housing Element or consistent with the unit mix ofnon-restricted
units.
F. Compliance with Devel~ment Standards and Codes. Housing development projects shall
comply with all applicable development standards, except those which may be modified as
an incentive or concession or will have the effect of physically precluding the construction of
a development providing the target units at the densities or with the concessions or incentives
permitted by Section 19.90.050, or as otherwise provided for in this Chapter.
G. Desi¢n Consistency. The design and appearance of the target units shall be consistent or
compatible with the design of the total housing development in terms of appearance,
materials, and finished quality.
H. Parkin. Upon.the request of the developer, the parking ratio (inclusive of handicap and
guest parking) for a housing development that conforms to the requirements of Section
19.90.040(A) of this Chapter shall not exceed the ratios specified in Table F, below. Such
request and application of this parking ratio shall not be considered anincentive/concession
per Section 19.90.050(A). If the developer does not request the parking ratios specified in
Table I or the project does not conform to the requirements of Section 19.90.040(A) of this
Chapter, the parking standards of the applicable zone as specified in Section 19.62 of the
Municipal Code shall apply.
1. Fractional Parking Spaces. If the total number of parking spaces required. for a
development is other than a whole number, the number shall be rounded up to the next
whole number.
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2. Tandem and Uncovered Parking. For purposes of this Section, a housing development
may provide "on-site" parking through tandem parking or uncovered parking, but not
through on-street parking.
3. Additional Parking Incentives/Concessions. The developer may request additional
parking incentives or concessions beyond those provided in this Section, as specified in
Section 19.90.050(A) of this Chapter.
Table F
Parking Ratio for Housing Development
projects
On-Site Parking Ratio
Dwelling Unit Size (Inclusive of
Handicapped & Guest_
Parking)
0-1 bedrooms 1 space per unit
2-3 bedrooms 2 spaces per unit
4 or more bedrooms 2.5 spaces per unit
Waiver/Reduction of Development Standards. Any waiver or reduction from the applicable
development standards shall be limited to those necessary to implement the density and
incentives/concessions to which the developer is entitled under Section 19.90.050.
Adverse Impact. Nothing in this Section shall be construed to require that the City waive
or reduce development standards that would have an adverse impact upon the health,
safety or the physical environment and for which there is no feasible method to
satisfactorily mitigate or avoid the specific adverse impact. Adverse impact is defined in
'paragraph (2) of subdivision (d) of Section 65589.5 of the California Government Code
and any subsequent amendments and revisions.
2. Historical Resources & Conflict with Law. Nothing in this Section shall be construed to
require that the City waive or reduce development standards that would have an adverse
impact on any real property that is listed in the California Register of Historical
Resources or to grant any waiver or reduction that would be contrary to state or federal
law.
19.90.090 Affordability Tenure.
A. Lower and Very Low Income Housing. All target units for Lower and Very Low Income
households shall remain restricted and affordable to the designated group for a period not less
than 30 years, or a longer period of time if required by the construction or mortgage
financing assistance program, mortgage insurance program, or rental ftnancing subsidy
program.
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B. Moderate Income. All, target units for Moderate Income persons or families shall be initially
occupied by the designated group and' offered at an allowable housing expense. The target
unit(s) shall be subject to an equity sharing agreement; as set forth by Section 65915 of the
Government Code, unless in cohflict with the requirements of another public funding source
or law.
19.90.100 Application Requiremettts and Review.
A. Preliminary Application. A developer proposing a housing development pursuant to this
Chapter may submit a preliminary application prior to the submittal of any formal request for
approval. Developers are encouraged to schedule apre-application conference with
designated staff of the Development Services Department to discuss and identify potential
application issues, including prospective incentives or concessions pursuant. to Section
19.90.050 of this Chapter.
B. Application. The developer shall submit an Affordable Housing Application, which will be
treated as part of any other required development application, requesting adensity/FAR
bonus and/or incehtive(s) or concession(s), pursuant to this Chapter. The proposed housing
development may require other project development application(s) {e.g, tentative map, parcel
map, design review, and conditional use permits). Under such circumstances, the Affordable
Housing Application shall be processed concurrently.
C. Approval of an Application. When a project involves a request for adensity/FAR bonus,
incentive(s) or concession(s) or in-lieu incentives, the decision-making body shall make a
written finding, as part of the approval of the development application(s) required for the
project or as part of the approval of the Affordable Housing Agreement, that the project is
consistent with the provisions of this Chapter. The granting of an incentive/concession shall
not, in and of itself, require a General Plan, Local Coastal Plan, or zoning amendment or any
other discretionary approval.
D. Denial of Application. In rejecting such development application(s), the decision-making
body shall make written findings in compliance with Government Code Section 65589.5(b)
and based upon substantial evidence in the record.
19.90.110 Affordable Housing Agreement.
A. Execution of Agreement. Developers, requesting adensity/FAR bonus, incentive(s) or
concession(s), or in-lieu incentives pursuant to this Chapter; shall demonstrate compliance
with this Chapter by executing an Affordable Housing Agreement with the City.
B. Recordation. Following execution of the Affordable Housing Agreement by all parties, the
completed Affordable Housing Agreement, with the approved site development plan, shall be
recorded against the entire development, including non-restricted lots/units; and the relevant
terms and conditions therefrom filed and recorded as a deed restriction or regulatory
agreement on those individual lots or units of a property which are designated for the
location of target units. The approval shall take place prior to final map approval ,and
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recordation shall occur concurrent with the final map recordation, or where a map is not
being processed, prior to issuance of building permits for such parcels or units. The
Affordable Housing Agreement shall be binding to all future owners .and successors in
interest.
C. Provisions. The Affordable Housing Agreement shall set forth the conditions and guidelines
to be met in the implementation of this Chapter to include, but not be limited to, The
following:
1. Nrunber of Units: The number of total residential units and the density bonus and target
units approved for the housing development
2. Term of Affordability. The number of years the occupancy and affordability restrictions
for target units remain in place.
3. Phasing Schedule. A schedule of production and occupancy of target units.
4. Incentives/Concessions. A description of the incentive(s), concessions, or in-lieu
incentives of equivalent financial value being provided by the City.
5. Operation and Maintenance. The rules and procedures for qualifying tenants,
establishing affordable rent, filling vacancies, operating and maintaining target units for
qualified tenants.
6. Ongoing Monitoring. Provisions requiring developers to demonstrate compliance with
this Chapter.
7. Initial Sale. Where applicable, tenure and conditions governing the initial sale of for-sale
target units.
8. Remedies. A description of remedies for breach of the Agreement by either parry.
9. Other Provisions for Compliance. Other provisions as the City may require to ensure
implementation and continued compliance with this Chapter and the State Density Bonus
Law.
D. Balanced Communities Regulatorv Agreement. Where a regulatory agreement is required to
demonstrate the developer's compliance with the City's Balanced Communities-Affordable
Housing Policy and/or as a condition of the City's direct financial assistance, the Affordable
Housing Agreement may be combined into one single Housing Regulatory Agreement.
19.90.120 Agreement Processing and Administrative Fee.
Over the minimum tenure of projects containing target units, the City will either directly or, via
one or more third parties, provide for the preparation and/or reviewing of all Affordable Housing
Agreements and recurring services associated with the administration and monitoring of such
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units. The City Council may establish an administrative fee to fully recover the costs associated
with such administration and monitoring, the amount of which shall be established by ordinance
of the City Council.
19.90.130 Noticing and Procedural Requirements for Expiring Rental Restrictions.
A. Tenant Notices of Expiring Affordability. The developer shall give notices consistent with
California Government Code 65863.10 through 65863.13 in anticipation of the expiration of
affordable housing restrictions to each affected tenant household.
B. Notices to Prospective and New Tenants. All prospective and new tenants to the housing
development shall be provided at the time of their application for tenancy a copy of all
notices issued per this Section to existing tenants.
C. "Notices to the City of Chula. Vista and State. The developer shall provide a copy of all
notices consistent with California Government Code 65863.10 through 65863.13 in
anticipation of the expiration of affordable housing restrictions to the City of Chula Vista
Development Services Department and the State Department of Housing and Community
Development.
D. First Class Mailed Notices. All notices to affected tenants, the City of Chula Vista and the
State Department of Housing and Community Development shall be sent by first-class mail
postage prepaid.
19.90.140 First Right of Refusal to Purchase Rental Housing.
For rental housing development projects, the City or a designee shall have first right of refusal to
purchase rental housing development projects containing target units offered for sale at any time
within five years of the end of the minimum tenure of affordability and upon expiration of the
rental restrictions,. consistent with California Government Code 65863.10 through 65863.13.
A. Designees. The City shall consider as designees all qualified entities or individuals as listed
by the State Department of Housing and Community Development or who have contacted
the developer directly.
B. Notice to City and Designees. The developer shall give notice of the opportunity to purchase
the housing development to City and all designees consistent with California Government
Code 65863.10 through 65863.13
C. Exercising First Right of Refusal. Within one hundred eighty (180) days of its receipt of the
notice of an opportunity to purchase, the City or the designee shall indicate its' intent to
exercise the first right of refusal for the purpose of providing affordable housing by
submitting a bona fide offer to purchase. During this one hundred eighty (180) day period,
the developer shall not accept an offer to purchase by any other entity.
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D. Close of Escrow. Upon exercising its right of first refusal pursuant to Section 19.90.140 (C),
the City or its designee will make a good faith effort to close escrow within a reasonable
period, assumed to be approximately one-hundred twenty days.
E. Aropraisal. The, fair market value, at the time of sale, assuming continued affordability
restrictions of the housing development shall be determined by an appraisal, as requested by
the City, the designee, or the developer. Costs associated with the appraisal shall be borne by
the requesting party: The appraisal shall be non-binding with respect to sales price of the
development offered in the bona fide offer to purchase, or the acceptance or rejection of the
offer.
E Failure to Exercise Right. If the City or its designee fails to exercise its option of first right
of refusal to purchase the housing development within 180 days of notification of the
opportunity to purchase, then the target units may be converted to market rate units with no
income or rent restrictions as allowed by California Government Code 65863.10 through
65863.13.
19.90.150 Savings Clause.
A. If any provision of this Chapter or the application thereof to any person or circumstances is
held invalid by a court of competent jurisdiction, the remainder of the Chapter and the
application of the provision to other persons not similarly situated or to other circumstan_ ces
shall not be affected thereby.
B. Should any conflict exist between this Chapter and any other land use ordinance, regulation,
resolution, policy or prior decision of the City, this ordinance shall control all applicable land
use applications which do not have final approval on the effective date of the Chapter.
SECTION II. Environmental Determination. The City Council does hereby find and determine
that the adoption and implementation of proposed Chapter 19.90 of the Municipal Code by
establishing requirements for the reservation and affordability of housing units for Very Low,
Lower and Moderate Income households and senior citizens in residential projects under a city
wide Affordable Housing Incentive ordinance will not result in any physical development in and
of itself, and thus will not have an impact on the environment. The City Council does hereby
further fihd and determine that the subject Affordable Housing Incentive ordinance is exempt
from the California Environmental Quality Act (CEQA) based on CEQA Guidelines .Section
15061 (b)(3), because it can be seen with certainty that there is no possibility that this activity
has the potential to have a significant effect on the environment, and therefore, is. not subject to
CEQA.
SECTION III. Severability. If any section, subsection, sentence, clause, phrase or word of this
ordinance is for any reason held to be invalid and/or unconstitutional by a court of competent
jurisdiction, such decision shall not affect the validity of the remaining portions of this
ordinance.
SECTION IV. Effective Date. This ordinance shall become effective thirty (30) days after its
second reading and adoption.
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SECTION V. The City Glerk is directed to publish this ordinance in accordance with the City
Charter and applicable state law.
,Presented by: Approved as to form by:
Gary Halbert, PE, ATCP ~ ~len R. Goobins
Assistant City Manager/ i ity Attorney
Development Services Director
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