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HomeMy WebLinkAbout2012/12/11 Item 24 Additional Information - CV Density Bonus City CouncilCity Council INTRODUCTIONINTRODUCTION Chula VistaChula Vista PCMPCM--1212--1111 December 11, 2012 Density Bonus Incentive ProgramDensity Bonus Incentive Program PurposePurpose •Conformance with California CONTEXTCONTEXT Government Code Section 65915. –Increase housing, particularly affordable housing –Significant contribution to the economic feasibility Density BonusDensity Bonus Eligible ProjectsEligible Projects •Affordable Housing •Senior Housing •Land Donation •Also applies to: –Child Care Facilities within Affordable Housing –Condominium Conversions Applicant agrees to.. In Return City Grants…. Targeted % of Units DensityBonus Targeted Group% of Units Reserved GroupReserved Very Low 20% 5% Very Low Income5% (2.5% additional foreach 1% increase) Income Low 20% Low Income10% 10% (1.5% additional foreach 1% increase) Income Moderate Income10% (for-sale only) Moderate 5% 10% (for-sale only) (1% additional foreach 1% increase) Income Seniors (62+ years)Civil Code 51.3 & 51.12 Seniors Civil Code 51.3 & 20% maximum (62+ years)51.12 AND At least one incentives or concessions State Parking Standards Density BonusDensity Bonus ProcessingProcessing •Same review process –Conditional Use Permit –Design Review –Environmental Review –Citizen Participation Program Covenant between the developer • (property owner) and the City Recorded against property – Reserve the housing units for a set period – FindingsFindings Statutory LimitationsStatutory Limitations •Grant the density bonus if the requirements of State Law are met •Denying requests for concessions or incentives –Written findings –Based on substantial evidence Conclusion •Conformance with State law •Tool to increase affordable and senior housing CONCLUSIONCONCLUSION Recommendation •Hold the public hearing •Recommend adoption of Affordable Housing Incentive (aka Density Bonus) Ordinance CONCLUSIONCONCLUSION QUESTION: What’s the Area Median Income (AMI)? % of Maximum Maximum Median Family Annual Monthly IncomeSizeIncomeIncome 50%1$28,100 $2,342 Very Low 2$32,100 $2,675 Income3$36,150 $3,013 4$40,150 $3,346 5$43,350 $3,613 6$46,550 $3,879 80%1$45,000$3,750 Low2$51,400$4,283 Income3$57,850$4,821 4$64,250$5,354 5$69,400$5,783 6$74,550$6,213 As published by the US Department of Housing and Urban Development (HUD) QUESTION: How are the maximum allowable rents or sales prices calculated? Very Low Income Unit Size % of Median Max Housing \[.50 x area median IncomePayment income x .30\] / 12 months 0 (Studio) $ 664 Lower Income 1 bedroom $ 759 \[.60 x area median Very Low  income x .30\] 12 months Income HH 2 bedrooms $ 853 @ 50% AMI 3 bedrooms $ 948 Affordable Housing Price = 4 bedrooms $ 1,024 Rent/Mortgage + 0 (Studio) allowance for basic $ 706 utilities (, taxes, fees, 1 bedroom $ 910 etc. Low Income HH 2 bedrooms $ 1,024 @ 80% AMI 3 bedrooms $ 1,138 4 bedrooms $ 1,229 QUESTION: How is a density bonus calculated? •Base density = otherwise maximum allowable residential density –Fractions rounded up  •i.e. 20% of 72 base units; .2 x 72 = 14.4 15 units •The number of affordable units is determined prior to the addition of the bonus units. EXAMPLE In Return City Grants…. Parking Standards • City On-Site Parking State On-Site Parking Dwelling Unit SizeRatio Ratio (CVMC 19.62.050(13)) 0-1 bedrooms 1 space per unit1.5 space per unit 2-3 bedrooms 2 spaces per unit2 spaces per unit 4 or more bedrooms 2.5 spaces per unit2.5 spaces per unit •Includes guest and handicapped parking •Can use –Tandem parking –Uncovered parking In Return City Grants…. AND incentives or •At least one of the following concessions : –Reduce site development standards, modify zoning code requirements, or design requirements –Provide other regulatory incentives or concessions resulting in identifiable cost reduction No.of Incentives by % of Units Restricted No.of Incentives123 VeryLow Income5%10%15% LowIncome10%20%30% Moderate Income10%20%30% Term of Restrictions Income GroupTerm VeryLow Income30 years LowIncome30years Initialpurchaser; Moderate Income Equity Share Monitored annually by the City for continued affordability Affordable/Senior Housing Standards •Bedroom mix consistent with project •Design and appearance consistent with overall development FINDINGS Statutory Limitations ref Govt Code 65915(d) •Denial of incentives and concessions –Not required to provide affordable housing –Specific adverse impact on health or safety, the environment or historical resources –Contrary to state or federal law