HomeMy WebLinkAbout06-035 Density Bonus Regulations-Prop Ord Amd
AGENDA STATEMENT
PLANNING COMMISSION STUDY SESSION DATE: August 8, 2006
SUBJECT:
STUDY SESSION: PA 06-035 Proposed Ordinance Amending Density
Bonus Regulations
Report Prepared by Jeff Baker, Senior Planner and Leah Peachey. City
Attorney's Office
ATTACHMENTS:
I)
Ordinance Amending Chapter 8.52 of the Dublin Municipal Code
(Zoning Ordinance) Relating to Density Bonus Regulations.
Comparison of Dublin's Inclusionary Zoning Regulations and
Density Bonus Regulations.
2)
,
RECOMME1~R1t??~N: Receive Staff presentation and provide comments.
PROJECT D~~~TION:
Currently, the Dublin Zoning Ordinance (Zoning Ordinance) provides for Density Bonus Regulations in
Chapter 8.52. A density bonus is a density increase over the otherwise maximum allowable residential
density under the Zoning Ordinance and General Plan. However, the current Chapter 8.52 was adopted in
September 1997, and California Density Bonus law has changed significantly over the past ten years.
The proposed revision to the Density Bonus Regulations (Attachment I) is intended to: I) fulfill the
current statutory requirements of state law regarding density bonus; 2) facilitate the implementation of the
Density Bonus Regulations at the City Staff level; and 3) continue to encourage developers to include
affordable housing units in their development projects.
BACKGROUND:
The State Legislature passed the first density bonus law in 1979 with the intent of encouraging builders to
include low- and moderate-income housing in their proposed housing developments. Under the state
statute, when a developer agrees to construct the requisite percentage of affordable housing units, a city
must grant a density bonus and certain other "concessions or incentives" to the developer (Gov. Code S
65915(a).). However, it should be noted that to date, the City has not received any requests to grant a
density bonus.
The core provisions of the state statute include tables to determine the density bonus for which a
developer is eligible, examples of development concessions or incentives, and other methods for which a
developer may receive a density bonus, such as construction of a child care facility. However, many of
the state statute's provisions are ambiguous and require interpretation at the City Stafflevel.
In fact, the state statute requires all cities to adopt an ordinance that specifies how compliance with the
state density bonus statute will be implemented within the city (Gov. Code S 65915(a).). In other words,
the City must comply with the statutory provisions set forth in the state density bonus statute; but where
the state statute is silent, the City may adopt its own implementing procedures.
COPIES TO: File
Page I of6
ITEM NO.:
I . I
G:\PA#\2006\06-Q35 Density Bonus Ord Amendment\PC\pcsr 8.08.06.DOC
It is important to note the impact that the proposed Ordinance will have on zoning and development
within the City. Although the Ordinance encourages applicants to construct affordable housing units, the
Ordinance also involves the reduction of development standards and density regulations. Please note, the
City currently has requirements for affordable housing (Inclusionary Ordinance). The Density Bonus
regulations are separate from the Inclusionary Ordinance. For these reasons, Staff recommends that the
Planning Commission review the proposed Density Bonus Ordinance as a land use regulation with the
potential to impact the development, density and housing within the City.
ANALYSIS:
Proposed Density Bonus Regulations and Hypothetical Development
Since its adoption in 1979, the state density bonus law has been amended frequently, adding increasing
complexity to density bonus law. Perhaps the most effective method for describing the state statute and
proposed Ordinance is to apply the Ordinance to a hypothetical development. Thus, as each element of
the Ordinance is described, the effect on the hypothetical development will be described in the boxes
below.
Eligibility for Density Bonus (Section 8.52.030)
To qualify for a density bonus, a developer must propose a housing development that consists of five or
more units, and includes at least one of the following within the development: I) ten percent of the total
units in the development for lower income households; 2) five percent of the total units in the
development for very low income households; 3) a senior citizen housing development or mobilehome
park for seniors that comply with state law; or 4) ten percent of the total units in a common interest
development for persons and families of moderate income, provided that all units in the development are
offered to the public for purchase.
Prior to the submittal of any formal project application, the proposed Ordinance permits an applicant to
submit a preliminary proposal to the Community Development Director (Section 8.52.090). Within 90
days of receiving the preliminary proposal, the City will provide the applicant with a preliminary
evaluation of the project. Formal application for a density bonus must be made in conjunction with the
application for development.
The affordable units that qualify a developer for a density bonus are subject to certain restnctlOns
described in greater detail in the section entitled "Restriction Terms and Regulatory Agreements" below.
Density Bonus Calculation (Section 8.52.040)
As the developer increases the percentage of affordable units beyond the threshold requirements above,
the density bonus percentage similarly increases. The increments of affordable unit percentages and
resultant density bonus percentages are set forth in the proposed Ordinance in a user-friendly table format
based on affordability levels. However, in no event may the City be required to grant a density bonus in
excess of 35 percent of the maximum permitted density. On the other hand, the state statute provides that
the City may not be prevented from granting a density bonus in excess of the statutory requirements, at its
discretion.
20f6
STEP 1: Density Bonus Calculation
Developer proposes a 100-unit development, which will contain 15 units for lower income households, or
15% will be provided for lower income units.
Pursuant to the table in Section 8.52.040.A.l of the draft ordinance, developer receives a Density Bonus
of27.5%. Where a density calculation results in fractional units, the fractional unit will be rounded up.
Therefore the developer could develop:
Total of 128 units [100 base proposal + 28 density bonus), which contains:
15 lower-income units pursuant to the Density Bonus Regulations.
Effects of the City's Inclusionary Zoning Regulations (Chapter 8.68)
The City's existing Inclusionary Zoning Regulations (Zoning Ordinance Chapter 8.68) require aU new
residential development projects of 20 units or more to construct 12.5 percent of the total number of
dwelling units within the development as affordable units (Section 8.68.030.A). Alternatively, the
Inclusionary Zoning Regulations permit the applicant to pay a fee in-lieu of constructing up to 40 percent
ofthe affordable units that the developer would otherwise be required to construct.
The Inclusionary Zoning Regulations also establish a mandate to provide affordable housing, with which
aU developers must comply. Conversely, the Density Bonus Regulations establish a mechanism for
developers to voluntarily provide affordable housing, with which developers may choose to comply.
Thus, the proposed Density Bonus Ordinance provides that the affordable units constructed by a
developer pursuant to the Inclusionary Zoning Regulations do not count towards a Density Bonus award.
Similarly, because the Legislature intended the density bonus statute to provide an "award" to a developer
and to give the developer an incentive to construct affordable housing, the City's Inclusionary Zoning
Regulations must be applied to the developer's original proposed development-and not to the
development as augmented by the Density Bonus Regulations.
STEP 2: Application ofInclusionarv Zonin!! Re!!ulations
Developer's 1 OO-unit development must include 12.5% affordable units pursuant to the Inclusionary
Zoning Regulations.
Applying the 12.5% to the 100-unit proposed development results in 12.5 units of affordable housing.
However, the Inclusionary Zoning Regulations provide that fractions of 0.50 or less shaU be disregarded.
The lnclusionary Zoning Regulations require the Developer to construct 12 affordable units, assuming
that the Developer constructs all the units, as opposed to paying an in-lieu fee.
Development Profile:
Total of 128 units [100 base proposal + 28 density bonus], which contains:
15 lower-income units pursuant to the Density Bonus Regulations and
12 affordable units pursuant to the Inclusionary Zoning Regulations.
30f6
Concessions or Incentives (Section 8.52.050)
In addition to the density bonus award, the state statute provides for the award of certain "concessions or
incentives" to applicants of eligible housing developments. A "concession or incentive" is defined in
Section 8.52.050.B to include: 1) a reduction in site development standards, such as a reduced setback or
increased building height, that results in identifiable, financially sufficient and actual cost reductions; 2)
approval of mixed use zoning with a housing project if it reduces the cost of the housing project and is
compatible with existing and planned development; and 3) other regulatory concessions or incentives
proposed by the applicant that result in identifiable, financially sufficient and actual cost reductions.
Applicants are eligible to receive one, two or three concessions or incentives, depending on the
percentage of affordable housing units proposed by the applicant. Formal application for the concessions
or incentives must be made in conjunction with the application for development, and must include: 1) a
written statement specifying the concession or incentive requested and 2) a project financial report (pro
forma) to allow the City to evaluate whether the concession or incentive results in identifiable, financially
sufficient and actual cost reductions, or reduces the cost of the housing project, as appropriate.
STEP 3: Concessions or Incentives
Developer proposes a development that will contain 15% lower-income units.
Developer is eligible for one concession or incentive based on the proposal of 15% lower-income units.
Developer requests a concession or incentive of a waiver ofthe height limit development standard that
would otherwise be applicable to the proposed development.
Development Profile:
Total of 128 units [100 base proposal + 28 density bonus], which contains:
15 lower-income units pursuant to the Density Bonus Regulations; and
12 affordable units pursuant to the Inclusionary Zoning Regulations.
A waiver of the height limit that would otherwise be applicable to the development.
Child Care Facility (Section 8.52.080)
If the developer proposes a housing development that receives a density bonus as described above and, in
addition, constructs a child care facility within the development, the developer is eligible for an additional
density bonus or additional concession or incentive. The additional density bonus award will be an
amount of residential space that is equal to or greater than the square feet of the child care facility, which
the applicant shall use to construct additional unites) ofa size not less than the average size of units within
the development. If the applicant chooses a concession or incentive instead of a density bonus, the
concession or incentive must contribute significantly to the economic feasibility of the construction of the
child care facility.
Operation of the child care facility is subject to certain restrictions. The child care facility must remain in
operation so long as the units qualifying the developer for a density bonus are restricted (see section
entitled "Restriction Terms and Regulatory Agreements" below). To ensure such operation, the applicant
must submit a financial report (pro forma) and security as required by the Community Development
Director, such as cash deposit or letter of credit. In addition, the children who attend the child care
40f6
facility must reflect the percentage of very low, lower or moderate income households within the
development.
The City need not grant the additional award for construction of a child care facility if it finds that the
community is already adequately served by child care facilities.
STEP 4: Child Care Facilitv Bonus
Developer constructs a child care facility of2,800 square feet. The average size of the units within the
development is 1,400 square feet.
The developer may construct 2 additional units.
Development Profile:
Total of 130 units [100 base proposal + 28 density bonus+ 2 child care facility bonus], which contains:
15 lower-income units pursuant to the Density Bonus Regulations; and
12 affordable units pursuant to the Inclusionary Zoning Regulations.
A waiver ofthe height limit that would otherwise be applicable to the development.
General Requirements for Implementing Density Bonus Regulation (Section 8.52.060)
The units that qualify an applicant for a Density Bonus must remain affordable, as defined below, for a
period of 30 years or longer. To ensure this continued affordability, the proposed Ordinance requires the
execution of certain agreements with the City.
For lower and very low income rental units, the agreement will ensure that rents are affordable, preclude
subletting or subleasing the unit, and require an annual report to the City providing information such as
location of restricted units, monthly rents charged, and vacancy information. For lower and very low
income for-sale units, the agreement will ensure an initial sales price that results in an affordable housing
cost, and require the initial purchaser to enter into a Resale Restriction and Option to Purchase
Agreement, in substantially the form required by the Jnciusionary Zoning Regulations.
For developments operated as senior citizen housing developments or mobilehome parks for senior
residents, the agreement will ensure that the development will operate in accordance with state law.
For moderate income units, the agreement will ensure that initial occupants are persons and families of
moderate income, and the agreement will require the initial occupants to enter into an equity sharing
agreement with the City.
The agreements between the applicant and City will specify information regarding location and
construction scheduling of restricted units, and will require: 1) the restricted units to be constructed
concurrently with or prior to non-restricted units; 2) the restricted units to be dispersed throughout the
project; and 3) the restricted units to include unit types identical to and in the same proportion as the
development as a whole. All agreements will be recorded against the property as a deed restriction prior
to the issuance of any project Building Permits.
Finally, potential occupants of units that qualify an applicant for a density bonus must qualify on the basis
of household income. No household may occupy a restricted unit unless the City or the City's designee
approves the household's eligibility.
5of6
Enforcement of Density Bonus Regulations (Section 8.52.100)
The proposed Ordinance provides two methods of enforcement. The City may suspend or revoke any
Building Permit approval upon violation of the Density Bonus Regulations; and no land-use approval,
Building Permit or Certificate of Occupancy will be issued for any development, unless exempt from or in
compliance with the Density Bonus Regulations. In addition, the City may take legal action to recover
any excess rent charged to tenants of a restricted unit.
Affordability Comparison of Inclusionary Zoning and Density Bonus Regulations
Both the City's Inclusionary Zoning Regulations and the proposed Density Bonus Regulations render
housing units that are restricted based on income levels. In addition, the Inclusionary Zoning and Density
Bonus Regulations use identical income definitions, namely, very low income does not exceed 50 percent
of area median income, lower income does not exceed 80 percent of area median income and moderate
income does not exceed 120 percent of area median income.
However, the level of affordability in restricted units, both in the rental and owner-occupied contexts,
differs significantly between the Inclusionary and proposed Density Bonus Regulations. Attachment 2
provides a comparison of affordability under the Inclusionary and proposed Density Bonus Regulations.
In most cases, the definitions for affordability in the Density Bonus Regulations provide deeper
affordability than the Inclusionary Zoning Regulations.
For example, whereas the Inclusionary Zoning Regulations define affordable rent for a lower income
household to be 30 percent times 80 percent of the area median income, the Density Bonus Regulations
define affordable rent for a lower income household as 30 percent times 60 percent of the area median
income. Thus, for a four-person household in Alameda County, the affordable monthly rent for a lower
income household cannot exceed $1,678 under the Inclusionary Zoning Regulations and $1,257 under the
Density Bonus Regulations.
Due to the difference in levels of affordability, the City must operate two parallel monitoring programs
for affordable units subject to the Inclusionary Zoning Regulations and affordable units subject to the
Density Bonus Regulations. Thus, the proposed Density Bonus Ordinance provides that the City Council
may, by resolution, establish the amount of fees to be charged to applicants for administration of the
Density Bonus Regulations.
ENVIRONMENTAL REVIEW:
The California Environmental Quality Act (CEQA), together with the State guidelines and City
environmental regulations require that certain projects be reviewed for environmental impacts and that
environmental documents be prepared. The proposed ordinance is not a "project" within the meaning of
Section 15378 of the State CEQA Guidelines, because it has no potential for resulting in physical change
in the environment, directly or ultimately. Notwithstanding the adoption of this ordinance, individual
projects shall not be exempt from compliance with CEQA.
RECOMMENDATION:
Staff recommends that the Planning Commission receive Staff presentation and provide comments.
60f6
ORDINANCE NO. - 06
AN ORDINANCE OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
*************
AMENDING CHAPTER 8.52
OF THE DUBLIN MUNICIPAL CODE (ZONING ORDINANCE)
RELATING TO DENSITY BONUS REGULATIONS
The City Council of the City of Dublin does hereby ordain as follows:
Section 1. Amendment of Chapter 8.52: Chapter 8.52 of the Dublin Municipal Code is
amended to read as follows:
CHAPTER 8.52
DENSITY BONUS REGULATIONS
8.52.010
Purpose. The purpose of this Chapter is to:
A. provide for the preservation and maintenance ofthe City's affordable housing supply through the
state-mandated density bonus program, including incentives for the development of housing that is
affordable to the types of households and qualifying residents identified in Section 8.52.030.
B. encourage developers to include very low, lower and moderate income housing units in their
proposed housing developments, as well as housing for seniors and child care facilities.
C. implement the requirements of state law (Government Code section 65915 et seq.) and the goals
and policies of the City's housing element.
8.52.020
follows:
Definitions. As used in this Chapter, each of the following terms shall be defined as
A. "Affordable Housing Cost" means the annual housing cost, including principal and interest on a
mortgage loan, property taxes and assessments, fire and casualty insurance, property maintenance
and repairs, a reasonable utilities allowance, homeowner association fees and space rent if the
house is situated on rented land, which shall not exceed:
1. For Very Low Income Households the product of30 percent times 50 percent of the Area
Median Income adjusted for family size appropriate for the unit.
2. For Lower Income Households the product of30 percent times 70 percent ofthe Area
Median Income adjusted for family size appropriate for the unit.
3. For Persons and Families of Moderate Income the product of35 percent times 110 percent
of the Area Median Income adjusted for family size appropriate for the unit, and shall not
be less than 28 percent times the gross income of the household.
-1-
ATTACHMENT (
B. "Affordable Rent" means the annual rent, including a reasonable utility allowance, which shall
not exceed:
1. For Very Low Income Households the product of30 percent times 50 percent of the Area
Median Income adjusted for family size appropriate for the unit.
2. For Lower Income Households the product 000 percent times 60 percent ofthe Area
Median Income adjusted for family size appropriate for the unit.
3. For Persons and Families of Moderate Income the product of 30 percent times 110 percent
of the Area Median Income adjusted for family size appropriate for the unit.
C. "Applicant" means any person, firm, partnership, association, joint venture, corporation, or any
entity or combination of entities that seeks city real property development permits or approvals.
D. "Area Median Income" is the median income level for Alameda County, as published by the
California Department of Housing and Community Development in the California Code of
Regulations.
E. "Child Care Facility" means a child day care facility other than a family day care home, including,
but not limited to, infant centers, preschools, extended day care facilities, and schoolage child care
centers.
F. "Common Interest Development" shall have the meaning given that term by Civil Code Section
1351.
G. "Concessions or Incentives" means those concessions and incentives set out in Section
8.52.050.B.
H. "Density Bonus" means a density increase over the otherwise maximum allowable residential
density under the Zoning Ordinance and General Plan as ofthe date of application.
I. EXAMPLE: Thus, for illustrative purposes, a twenty percent (20%) Density Bonus on a
one acre parcel with a general plan land use designation and zoning permitting a maximum
of 20 units per acre would allow 24 units rather than the 20 units that would be permitted
without the Density Bonus.
I. "Development Standard" includes site or construction conditions that apply to a residential
development pursuant to any ordinance, general plan element, specific plan, charter amendment,
or other local condition, law, policy, resolution, or regulation.
J. "Housing Development" shall have the meaning given that term by subdivision (j) of Govemment
Code Section 65915.
K. "Lower Income Household" means persons and families whose gross incomes are more than 50%
of the median income but do not exceed 80% of the Area Median Income, adjusted for family size.
-2-
L. "Persons and Families of Moderate Income" means persons and families whose gross incomes are
more than 80% ofthe Area Median Income but do not exceed 120% of the median income,
adjusted for family sized.
M. "Restricted Mobilehome Park" means a mobilehome park that limits residency based on age
requirements for housing for older persons pursuant to Civil Code Sections 798.76 or 799.5.
N. "Restricted Unit" means a unit that is counted toward qualifying the applicant for a Density Bonus
pursuant to this Chapter.
O. "Restriction Term" means a period of 30 years or such longer period if required by the
construction or mortgage financing assistance program, mortgage insurance program, or rental
subsidy program. With respect to rental units, the Restriction Term shall commence from the date
the release of occupancy is issued. With respect to owner-occupied units, the Restriction Term
shall commence from the initial date of sale.
P. "Senior Citizen Housing Development" shall have the meaning given that term by Civil Code
Sections 51.3 and 51.12.
Q. "Unit" means a dwelling designed and intended for occupancy by one household.
R. "Very Low Income Household" means persons and families whose gross incomes are 50% or less
of the Area Median Income, adjusted for family size.
8.52.030
Eligibility for Bonus.
A. Any Affordable Units required or otherwise proposed to be constructed pursuant to an Applicant's
obligations under Chapter 8.68 of the Dublin Municipal Code, including Affordable Units for
which and Applicant receives a credit pursuant to section 8.68.060, shall not be counted towards
the eligibility of a proposed Housing Development for a Density Bonus or Concession or
Incentive.
B. Any Housing Development that qualifies for a Density Bonus pursuant to section 8.52.030.C,
including all Restricted Units and Density Bonus units, shall not be exempt from: 1) the payment
of development impact fees; and 2) compliance with the California Environmental Quality Act.
C. In order to qualify for a Density Bonus and other Concessions or Incentives as provided by this
Chapter, a proposed Housing Development shall:
1. Consist of five or more units; and
2. Propose to include at least one of the following within the Housing Development:
a. Ten percent (10%) ofthe total units ofa Housing Development for Lower Income
Households; or
-3-
b. Five percent (5%) of the total units of a Housing Development for Very Low
Income Households; or
c. A Senior Citizen Housing Development or Restricted Mobilehome Park; or
d. Ten percent (10%) of the total units in a common interest development for Persons
and Families of Moderate Income, provided that all units in the development are
offered to the public for purchase.
D. For the purposes of calculating the Density Bonus pursuant to section 8.52.040, the applicant shall
elect upon which basis set forth in section 8.52.030.C.2 the Density Bonus shall be awarded.
8.52.040
Density Bonus Calculation.
A. The amount of the Density Bonus for Housing Developments meeting the criteria set forth in
Section 8.52.030 shall be calculated as set forth in this Section.
1. For Housing Developments meeting the criteria set forth in Section 8.52.030.C.2.a, the
Density Bonus shall be calculated as follows:
Lower-Income Density Lower-Income Density
Units 0/0 Bonus 8/0 Units 8/0 Bonus 0/0
10 20 16 29
11 21.5 17 30.5
12 23 18 32
13 24.5 19 33.5
14 26 20 35
15 27.5
2. For Housing Developments meeting the criteria set forth in Section 8.52.030.C.2.b, the
Density Bonus shall be calculated as follows:
Very Low-Income Units % Density Bonus %
5 20
6 22.5
7 25
8 27.5
9 30
10 32.5
11 35
3. For Housing Developments meeting the criteria set forth in Section 8.52.030.C.2.c, the
Density Bonus shall be 20 percent (20%).
4. For Housing Developments meeting the criteria set forth in Section 8.52.030.C.2.d, the
Density Bonus shall be calculated as follows:
Moderate- Density Bonus Moderate- Density Bonus
Income Units 0,10 % Income Units % %
10 5 26 21
--4--
II 6 27 22
12 7 28 23
13 8 29 24
14 9 30 25
15 10 31 26
16 11 32 27
17 12 33 28
18 13 34 29
19 14 35 30
20 15 36 31
21 16 37 32
22 17 38 33
23 18 39 34
24 19 40 35
25 20
B. In determining the percentage oftotal units in a project for Lower Income Households, units for
Very Low Income Households, or units in a common interest development for Persons and
Families of Moderate Income, no rounding shall be employed.
I. EXAMPLE: Ifa 200 unit project contains 21 lower income units (or 10.5% low income),
the Density Bonus would be calculated based on 10% lower income units and not 11 %
lower income units. Therefore, the Density Bonus is 20%.
C. Where density calculations result in fractional units, the fractional unit shall be treated as a unit.
I.
EXAMPLE: Thus, for illustrative purposes, the number of additional units authorized by
virtue ofa Density Bonus in a 201 unit project containing 22 low income units (or 11 %)
would be calculated as follows. The Density Bonus is for a project with 11 % low income
units is 21.5%. The number of additional units to which the applicant is entitled by virtue
ofthe Density Bonus would be calculated by multiplying 201 by 0.215 for a product of
43.215. After rounding up pursuant to this subsection C, the Applicant would be allowed
an additional 44 units for a total of245 units.
8.52.050
Concessions or Incentives.
A. An Applicant for a Housing Development that meets the criteria set forth in Section 8.52.030,
upon specific application, shall be entitled to the number of Concessions or Incentives set forth in
8.52.050.D, unless the City makes a written finding, based upon substantial evidence, of either of
the following:
I. The Concession or Incentive is not required in order to provide for Affordable Housing
Costs or for Affordable Rent for the targeted units.
2. The Concession or Incentive would have a specific adverse impact, as defined in Health &
Safety Code Section 65589.5, upon public health and safety or the physical environment or
on any real property that is listed in the California Register of Historical Resources and for
which there is no feasible method to satisfactorily mitigate or avoid the specific adverse
-5-
impact without rendering the development unaffordable to very low-, low- and moderate-
income households.
B. Concessions or Incentives granted pursuant to this Section may include:
1. A reduction in the site Development Standards that exceed the minimum building
standards approved by the California Building Standards Commission that results in
identifiable, financially sufficient, and actual cost reductions (e.g., coverage, setback, zero
lot line and/or reduced parcel sizes, and/or parking requirements).
2. Approval of mixed-use zoning in conjunction with the housing project if nonresidential
land uses would reduce the cost of the housing project, and the nonresidential land uses
would be compatible with the housing project and existing or planned development in the
area where the proposed Housing Development is located. If approval of mixed-use
zoning requires an amendment to the General Plan and/or to a specific plan, the Applicant
shall apply for such amendment(s) separately and in compliance with Section 8.120, and
shall pay all processing and preparation costs associated with such amendment(s).
3. Other regulatory Concessions or Incentives proposed by the Applicant or the City that
would result in identifiable, financially sufficient, and actual cost reductions.
C. A project which provides Restricted Units may be entitled to priority processing. Upon certifying
that the application is complete and eligible for priority processing, a project would be
immediately assigned to planning staff. The project would be processed by City staff in advance
of all non-priority items.
D. The number of Concessions or Incentives to which a Housing Development that meets the criteria
set forth in Section 8.52.030 shall be as follows.
1. One Concession or Incentive for Housing Developments that include:
a. at least 10 percent of the total units for Lower Income Households; or
b. at least 5 percent for Very Low Income Households; or
c. at least 10 percent for Persons and Families of Moderate Income in a common
interest development.
2. Two Concessions or Incentives for projects that include:
a. at least 20 percent of the total units for Lower Income Households; or
b. at least 10 percent for Very Low Income Households; or
c. at least 20 percent for Persons and Families of Moderate Income in a common
interest development.
-6-
3. Three Concessions or Incentives for projects that include:
a. at least 30 percent of the total units for Lower Income Households; or
b. at least 15 percent for Very Low Income Households; or
c. at least 30 percent for Persons and Families of Moderate Income in a common
interest development.
E. The Applicant shall submit a project financial report (pro forma) along with the application for the
project to allow the City to evaluate: 1) whether the Concessions or Incentives sought pursuant to
Sections 8.52.050.B.l and 8.52.050.B.3 would result in identifiable, financially sufficient, and
actual cost reductions; or 2) whether the Concessions or Incentives sought pursuant to Section
8.52.050.B.2 would reduce the cost ofthe housing project. The City may retain a consultant to
review the financial report. The cost of the consultant shall be borne by the Applicant with the
following exception: If the Applicant is a non profit organization, the cost of the consultant may
be paid by the City upon prior approval ofthe City Council.
8.52.060
General Requirements for Implementing Density Bonus Regulations.
A. Prior to the award of a Density Bonus, the Applicant shall enter into an agreement with the City,
which may be executed by the City Manager, by which the City has ensured that:
1. For projects pursuant to Sections 8.52.030.C.2.a and 8.52.030.C.2.b, the continued
affordability of all Restricted Units constructed in the project for the Restriction Term.
a. For Restricted Units that are rental units, the agreement shall ensure that the rents
will be set at an Affordable Rent. The agreement shall further preclude tenants
from subletting or subleasing the unit and require the owner ofthe Restrict Unit or
Restricted Units to submit an annual report to the City Manager, in a format
approved by the City, which report shall include, but not be limited to the following
information: an identification of the Restricted Units within the project; the
monthly rents charged and proposed to be charged; vacancy information for the
prior year; and the monthly income for tenants of each Restricted Unit throughout
the prior year.
b. For owned-occupied units, the agreement shall ensure that the initial sale of each
Restricted Unit shall be at a sales price that results in an Affordable Housing Cost
and shall also require that the initial purchaser of each Restricted Unit enter into a
Resale Restriction and Option to Purchase Agreement, in substantially the form
required by the City for Inclusionary Units under Chapter 8.68, which shall prohibit
the unit from being resold during the Restriction Term at a price that is higher than
Affordable Housing Cost.
2. For projects pursuant to Section 8.52.030.C.2.c, the property will be developed and
operated as a Senior Citizen Housing Development or as a Restricted Mobilehome Park.
-7-
3. For projects pursuant to Section 8.52.030.C.2.d, the initial occupant of the moderate-
income units that are directly related to the receipt of the Density Bonus are Persons and
Families of Moderate Income and that those initial occupants will be required to enter into
an equity sharing agreement with the City in accordance with subdivision (c)(2) of
Government Code section 65915.
4. The agreements shall run with the land and be recorded as a deed restriction prior to
issuance of any project building permits.
B. The agreements required by Section 8.52.060.A.1 and 8.52.060.A.3 shall:
1. specify, as to the Restricted Units, the household-income classification, number, location,
size and construction scheduling of all Restricted Units and shall require Restricted Units
in a project and phases of a project to be constructed concurrently with or prior to the
construction of non-Restricted Units;
2. require the Restricted Units to be dispersed throughout the project; and
3. require the Restricted Units to include unit types identical to and in the same proportion as
the project as a whole.
C. The City Council, by resolution, may establish the amount of fees to be charged to applicants
and/or developers for administration ofthis Chapter.
8.52.070
Certification of Initial Occupants of Restricted Units.
No household shall be permitted to occupy a Restricted Unit unless the City or the City's designee has
approved the household's eligibility. Potential occupants of Restricted Units will be qualified on the basis
of household income, as Lower Income Households, Very Low Income Households, or Persons and
Families of Moderate Income, or as persons eligible to occupy a Senior Citizen Housing Development or
Restricted Mobilehome Park. The Applicant shall use an equitable selection method established in
conformance with the terms of this Chapter. The selection criteria may not distinguish between adults and
children.
8.52.080
Child Care Facilities
A. When an Applicant proposes to construct a Housing Development that conforms to the
requirements of Section 8.52.030 and includes a Child Care Facility that will be located on the
premises of, as part of, or adjacent to, the development, the City shall grant either one of the
following:
1. An additional Density Bonus that is an amount of square feet of residential space that is equal
to or greater than the amount of square feet in the Child Care Facility. The Applicant shall use
any Density Bonus granted pursuant to this section to construct additional unit( s) of a size that
is not less than the average size of the units within the Housing Development. In the event that
a Density Bonus, or any portion thereof, granted pursuant to this section is insufficient to
construct an additional unit of a size that is not less that the average size of the units within the
-8-
Housing Development, the Applicant shall propose an alternative use for the Density Bonus,
subject to the approval of the Community Development Director.
2. An additional Concession or Incentive that contributes significantly to the economic feasibility
of the construction of the Child Care Facility.
B. The City shall impose, the following conditions on approval of any Housing Development that
includes a Child Care Facility:
I. The Child Care Facility shall remain in operation for a period oftime that is as long as or
longer than the period of time during which the Density Bonus units are required to remain
affordable pursuant to Section 8.52.060.A. This condition shall run with the land and be
recorded as a deed restriction prior to issuance of any project building permits.
2. Of the children who attend the Child Care Facility, the children of Very Low Income
Households, Lower Income Households, or families of moderate income shall equal a
percentage that is equal to or greater than the percentage of units that are required for Very
Low Income Households, Lower Income Households, or families of moderate income
pursuant to Section 8.52.030.C.
C. In order to qualify for a Density Bonus as provided by this Section, the Applicant shall submit the
following to the Community Development Director:
I. A financial report (pro forma) for the proposed Child Care Facility, subject to approval ofthe
Community Development Director.
2. Security as required by the Community Development Director, such as a cash deposit, bond, or
letter of credit, to ensure that the childcare facility remains operational for the period of time
described in Section 8.52.80.B.1.
D. Notwithstanding subsections A. and B. above, the City shall not be required to provide a Density
Bonus or Concession or Incentive for a Child Care Facility if it finds, based upon substantial
evidence, that the community has adequate Child Care Facilities.
E. Any Child Care Facility constructed pursuant to this section shall not count towards the
Applicant's obligations, if any, to provide Semi-Public Facilities.
8.52.090
Application Procedure.
A. An Applicant may submit to the Community Development Director a preliminary proposal for the
development of housing pursuant to this Chapter prior to the submittal of any formal project
application. The City shall, within 90 days of receipt of a preliminary proposal, provide the
Applicant in writing, comments and preliminary evaluation ofthe project. The preliminary
proposal is not an application for purposes of the Permit Streamlining Act deadlines, and any
comments or preliminary evaluations do not bind future City actions.
-9-
B. Formal application for a Density Bonus and any Concessions or Incentives shall be made in
conjunction with the application for development. The application shall comply with the review
process stated in the Dublin Municipal Code or Dublin Zoning Ordinance for the development
application being filed. The application shall provide the following additional information:
1.
A written statement specifying the desired density increase, Concession or Incentive
requested and the number, type, location, size and construction scheduling of all units.
2.
A project financial report (pro forma), if required pursuant to Section 8.S2.0S0.E or
Section 8.52.080.C.l.
3.
Any other information requested by the Community Development Director to implement
this Chapter.
8.52.100
Enforcement.
A. The City Manager shall enforce this Chapter, and its provisions shall be binding on all agents,
successors, and assigns of the Applicant. The City Manager may suspend or revoke any building
permit or approval upon finding a violation of any provision of this Chapter. No land-use
approval, building permit, or certificate of occupancy shall be issued for any development unless
exempt from or in compliance with this Chapter. The City may institute any appropriate legal
actions or proceedings necessary to ensure compliance herewith, including, but not limited to,
actions to revoke, deny, or suspend any permit or development approval. <
B. If the City Manager determines that rents or housing costs in excess of those allowed by operation
of this Chapter have been charged to a tenant residing in a Restricted Unit, the City may take
appropriate legal action to recover the excess rent, and the developer shall be obligated to pay to
the tenant, or to the City in the event the tenant cannot be located, any excess rents charged.
8.52.11 0
Appeals. Decisions of the City Manager under this Chapter may be appealed as
provided in Chapter 8.136.
Section 2. Compliance with California Environmental Quality Act ("CEQA "): The City
Council declares that this ordinance is exempt from CEQA based on the following findings: This
ordinance is not a "project" within the meaning of Section 15378 of the State CEQA Guidelines, because
it has no potential for resulting in physical change in the environment, directly or ultimately. The
adoption of this ordinance does not, in itself, allow the construction of any building or structure. The
adoption of this ordinance, therefore, has no potential for resulting in physical change in the environment,
directly or ultimately. This ordinance is mandatory pursuant to state law, California Government Code
Section 659IS(a). Notwithstanding the adoption of this ordinance, individual projects shall not be exempt
from compliance with CEQA.
Section 3. Severability: In the event any section or portion of this ordinance shall be
determined invalid or unconstitutional, such section or portion shall be deemed severable and all other
sections or portions hereof shall remain in full force and effect.
-10-
Section 4. Savings Clause: All code provisions, ordinances, and parts of ordinances in
conflict with the provisions ofthis chapter are repealed. The provisions ofthis chapter, insofar as they are
substantially the same as existing code provisions relating to the same subject matter shall be construed as
restatements and continuations thereof and not as new enactments. With respect, however, to violations,
rights accrued, liabilities accrued, or appeals taken, prior to the effective date ofthis ordinance, under any
chapter, ordinance, or part of an ordinance shall be deemed to remain in full force for the purpose of
sustaining any proper suit, action, or other proceedings, with respect to any such violation, right, liability
or appeal.
Section S. Effective Date and Posting of Ordinance: This ordinance shall take effect and be in
force thirty (30) days from and after the date of its passage. The City Clerk of the City of Dublin shall
cause the Ordinance to be posted in at least three (3) public places in the City of Dublin in accordance
with Section 36933 of the Government Code ofthe State of California.
PASSED, APPROVED AND ADOPTED BY the City Council of the City of Dublin, on this
day of _ 2006 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Janet Lockhart, Mayor
ATTEST:
Fawn Holman, City Clerk
APPROVED AS TO FORM:
Elizabeth H. Silver, City Attorney
816420.8; 114.1001
-11-
Affordability Comparison of Dublin's Inclusionary Zoning Regulations and Density Bonus Regulations
The chart below provides examples of rental and owner-occupied housing costs based on the 2006 Area Median
Income level for Alameda County for a four-person household, which is $83,800.
Inclusionary Zoning Regulations Density Bonus Regulations
Dublin Zoninq Ordinance Chaoter 8.68 Dublin Zoninq Ordinance Chapter 8.52
Income Definitions
Very Low Income Household 50% or less of area median income 50% or less of area median income
Lower I ncome Household 50% to 80% area median income 50% to 80% area median income
Moderate Income Household 80% to 120% of area median income 80% to 120% of area median income
Affordabilitv for Rental Units
Very Low Income Household 30% x 50% of area median income 30% x 50% of area median income
[$12,570 annual rent or [$12,570 annual rent or
$1,048 monthly rent] $1 ,048 monthly rent]
Lower Income Household 30% x 80% of area median income 30% x 60% of area median income
[$20,112 annual rent or [$15,084 annual rent or
$1,678 monthly rent] $1,257 monthly rent]
Moderate Income Household 30% x 120% of area median income 30% x 110% of area median income
[$30,168 annual rent or [$27,654 annual rent or
$2,514 monthly rent] $2,305 monthly rent]
Affordabilitv for Owner-Occu ied Units
Very Low Income Household 35% x 50% of area median income 30% x 50% of area median income
[$14,665 annual housing cost or [$12,570 annual housing cost or
$1,222 monthly housing cost] $1,048 monthly housing cost]
Lower Income Household 35% x 80% of area median income 30% x 70% of area median income
[$23,464 annual housing cost or [$17,598 annual housing cost or
$1,956 monthly housing cost] $1,466 monthly housing cost]]
Moderate Income Household 35% x 120% of area median income 35 % x 110% of area median income,
but not less than 28% x gross income of
household
[$35,196 annual housing cost or [$32,263 annual housing cost or
$2,933 monthly housing cost] $2,689 monthly housing cost]
842466-3
ATTACHMENT )-