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Chapt 21.62 Density Bonus(1991) CITY COUNCIL MINUTES WE---~SDAY, 7:30 P.M.--~-~-~-NUARY 2, 1991 Second Readin Ordinance No. 1825 - City-initiated Text /~nendment Second Reading of Ordinance 1825 approvee a City-initiated Text ~%mendment to the Can~bell Municipal Code implementing the State Density Bonus Law. ORDINANCE NO. 1825 BEING AN ORDINANCE OF THE CITY OF CAMPBELL APODPTING A TEXT AMENDMENT TO THE MUNICIPAL CODE OF THE CITY OF CAMPBELL, CAI.~ORNIA ADDING CHAPTER 21.62. CITY-INITIATED FILE NO. TA 90-03. After due consideration of all evidence presented, the City Council of the City of Campbell, California does find as follows: o The Planning Commission held a public hearing for consideration of the addition of Chapter 21.62 of the Campbell Municipal Code on November 27, 1990. The Planning Commission recommends approval of the Density Bonus Ordinance. Government Code Section 65915 requires that local governments adopt an ordinance implementing the State Density Bonus Law. Government Code Section 65915 requires the implementing ordinance to include a procedure for evaluating preliminary applications and to specify which incentives will be offered developers of qualified projects. An Initial Study has been prepared on the ordinance, as required by the California Environmental Quality Act. Based upon the foregoing findings of fact, the City Coundl concludes that A Negative Declaration is appropriate as no significant environmental impacts have been identified to be associated with the project which cannot be mitigated. The amendment is consistent with State requirements pertaining to the State Density Bonus Law. The proposed amendment contains implementation measures required by Government Code Section 65915. The proposed amendment will not be detrimental to the health, safety, peace, morals, comfort, or general welfare of persons residing or working in the neighborhood of such proposed use, or be detrimental or injurious to property and improvements in the neighborhood or to the general welfare of the City. City Council Ordinance Page -2- The proposed amendment facilitates meeting the City's share of regional housing needs for lower-income and very low-income households. .~ Implementation of this amendment will contribute to compliance with housing element law as well as density bonus law. FURTHER, the City Council of the City of Campbell does ordain as follows: SECTION ONE: That Chapter 21.62 be added to the Campbell Municipal Code as setforth in Exhibit A, attached herto. SECTION TWO: This Ordinance shall become effective 30 days following its passage and adoption and shall be published once within 5 days prior to proposed adoption and published 15 days upon passage and adoption in the San Jose Mercury News, a newspaper of general circulation in the City of Campbell, County of Santa Clara. The full text of the Ordinance is posted in the Office of the City Clerk, of the City of Campbell, and is available for public review. PASSED AND ADOPTED this 2nd day of January 1991, by the following roll call vote: AYES: NOES: ABSENT: ATTEST: Councilmembers: Watson, Burr, Conant, Ashworth, Kotowski Councilmembers: None Councilmembers: None ~ -~. ~' .-~ /Michael F. Kotowski, Mayor Chapter 21.62 DENSITY BONUS Sections: 21.62.10 21.62.20 21.62.30 21.62.40 21.62.50 21.62.60 21.62.70 21.62.80 21.62.90 Purpose Definitions Applicability Incentives General Requirements Requirements for Rental Rental Projects Requirements for Ownership Projects Resale Restrictions Application Procedure 21.62.10 Purpose. The Density Bonus ordinance is intended to comply with the State Density Bonus Law, Government Code Section 65915, which provides that a local government shall grant a density bonus and an additional incentive, or financially equivalent incentive(s), to a developer of a housing development agreeing to construct a specified percentage of housing for lower income households, very low income households or senior citizens. 21.62.20 Definitions As used in this chapter, the following terms shall have the following meanings unless otherwise indicated from the context: "Affordable Unit" shall mean a unit in which the rent does not exceed for lower income households 30% of 60% of the Santa Clara median income adjusted for household size, or as modified by state law, or b) for very low income households 30% of 50% of the Santa Clara median income adjusted for household size or as modified by state law. "Below Market Rate" (BMR) shall mean units to be sold or rented at below market rate prices. "Density Bonus" shall mean an increase in the number of dwelling units authorized for a particular parcel of land beyond the maximum allowed by the General Plan range specified on the Land Use Map of the City of Campbell General Plan. "Eligible Campbell Employee" shall mean any head of household, or in the case of married couples either spouse, who has worked within the City Limits of Campbell continually for one (1) year. Draft Density Bonus Ordi,.~ace Pase 2 December 10, 1990 Eo Fo Go He Jo Ko Lo O° "Existing Campbell Resident" shall mean any person who has lived within the City Limits of Campbell continually for one (1) year. "First Time Home Buyer" shall mean a person who has not owned a residence in the last three years. "Household Type" shall mean the population group identified by Government Code 65915 to qualify for a density bonus. "Incentive" shall mean a benefit offered by the City to facilitate construction of housing projects which include below market rate units. Among others, benefits may include fee deferments and waivers, granting of variances, relaxation of otherwise applicable permit conditions. "Lower income household" shall mean a household whose gross income is as established by Health and Safety Code Sections 50079.5 or as amended from time to time. "Optimum Household Size" shall mean the appropriate household size used by the Department of Housing and Community Development for the California Housing Rehabilitation Program. "Redevelopment Area" shall mean the area included within the boundaries of the Central Campbell Redevelopment Project or as said project area may be amended from time to time. "Resale controls" shall mean a resale restriction placed on Below Market Rate Units (BMR) by which the price of such units and income of the purchaser will be restricted in order to ensure the affordability and occupancy by lower or very low income households or senior citizens. ' "Senior Citizen" shall mean a person at least 62 years of age. "Senior Citizen Unit" shall mean a unit in which one the household members is 62 years of age or older. "Very low income household" shall mean a household whose gross income is as established by Health and Safety Code Section 50105 or as amended from time to time. Draft Density Bonus Ordi. _ace Page 3 December 10, 1990 21.62.30 Applicability go All housing developments containing 5 or more units (excluding density bonus units) are eligible for a density bonus of 25%, and an additional incentive, to developers agreeing to construct at least: 20% - of the units for lower income households, as defined in Section 50079.5 of the Health and Safety Code, or 10% - of the units for very low income households, as defined in Section 50105 of the Health and Safety Code, or 50% - of the units for senior citizens. Projects which meet the requirements set forth in this chapter shall qualify for a density bonus and at least one other concession or incentive unless: The City Council adopts a written finding that the additional, concession(s) or incentive(s) is not required in order to provide affordable housing. 21.62.40 Incentives The State-mandated additional incentive or concessions will be selected from the following list: A reduction in site development standards or a modification of the requirements of the Zoning Ordinance. For applications involving the modification of zoning or development standards the housing developer shall show that the waiver or modification is necessary to make the housing units economically feasible. Permissible incentives include, but are not limited to: Reduction of parking requirements. Reduction of open space requirements. Reduction of set back requirements. Bo Other regulatory incentive(s) or concession(s) proposed by the developer or the City, which result in identifiable cost reductions. Permissible incentives include, but are not limited to: Reduction of park dedication fees Reduction of application or construction permit fees. Draft Density Bonus Ord,..ace Pase 4 December 10, 1990 21.62.50 Be Ce Do Fo o Provision of tax exempt financing or other financial assistance as approved by the City Council or Redevelopment Agency Board. Incentives or concessions must directly affect the financial feasibility of including the BMR units in the project without adversely affecting the health, safety and welfare of City residents. General Requirements BMR units must remain affordable for 30 years if both a density bonus and additional incentive are granted. If only a density bonus is granted the BMR units shall remain affordable for 10 years. Affordability of BMR units shall be maintained longer if government financing with a longer designated preservation period is used for the project or if required by redevelopment agency policy. Eligible existing Campbell residents will have first preference for BMR units; second preference will be given to eligible persons employed within the City Limits of Campbell. A Master Regulatory Agreement shall be made between the developer and the City which indicates the household type, number, type, location, size and construction scheduling of all BMR units and such information as shall be required by the City for the purpose of determining the developers compliance with this chapter. The Master Regulatory Agreement will be required in a form acceptable to the City. BMR units in a project and phases of a project shall be constructed concurrently with or prior to the construction of non BMR units. BMR units shall be provided as follows: o BMR units shall be dispersed throughout the project. BMR units shall include all unit types represented in the project and said unit types shall be provided in the same proportion as the the project as a whole. BMR units shall be indentical with the design of the non BMR units with the following exception: a. Reduction of interior amenities for BMR ownership units will be permitted upon approval by the City as necessary to retain project affordability. The developer shall submit a project financial report (pro forma) to allow the City to evaluate the financial need for the State mandated Draft Density Bonus Ordi .... ice Pase 5 December 10, 1990 additional incentives. The City may retain a consultant to review the financial report. The cost of the consultant shall be born by the developer with the following exceptions: 21.62.60 Be If the applicant is a non profit organization the cost of the consultant may be paid by the City upon approval of the City Council. If the proposal is in the redevelopment area, the Redevelopment Agency may pay the cost of the consultant, at the discretion of the Agency Director. Requirements for Rental Housing Proiects. All BMR units shall be occupied by the household type specified in the written agreement required under section 21.62.50.C. The developers obligation to maintain BMR units as affordable housing shall be evidenced by a Master Regulatory Agreement that shall be recorded as a Deed Restriction running with the land. Those units targeted for lower-income households, as defined in Section 50079.5 of the Health and Safety Code shall be affordable at a rent that does not exceed 30 percent of 60 percent of the Santa Clara County median income adjusted for household size, or as modified by State law. Those units targeted for very low-income households, as defined in Section 50105 of the Health and Safety Code shall be affordable at a rent that does not exceed 30 percent of 50 percent of the Santa Clara County median income adjusted for household size, or as modified by State law. The appropriate household size used by the Department of Housing and Community Development for the California Housing Rehabilitation Program will be used to determine occupancy and rental price limits. Prior to the rental of any BMR unit, the City or its designee, shall verify the eligibility of the prospective tenant. The owner shall obtain and maintain on file certifications by each household. Certification shall be obtained immediately prior to initial occupancy by each household and annually thereafter, in the form entitled "Household Certification" provided by the City. The owner shall obtain updated forms for each household on request by the City, but in no event less frequently than once a year. The owner shall maintain complete, accurate and current records pertaining to the Property and will permit any duly authorized Draft Density Bonus Ordi ..... ice Pa~e 6 December 10, 1990 representative of the City to inspect the records pertaining the BMR units and occupants of the said units. Fo The City may establish fees associated with the setting up and monitoring of BMR units. Go The owner shall submit an quarterly report to the City, on a form provided by the City. The report shall include for each BMR unit the rent, income, and family size of the household occupying the unit. Ho The owner shall provide to the City any additional information required by the City to insure the long-term affordability of the BMR units by eligible households. 21.62.70 Requirements for Owner-Occupied Housing go All purchasers of BMR units shall be senior citizens or first time home buyers in the household type required in the Master Regulatory Agreement specified in section 21.62.50.B. Bo Purchasers shall be required to occupy the unit except with approval from the City. Evidence must be presented to the City that the owner is unable to occupy the unit due to illness or incapacity. In such cases, the unit shall be rented to the same household type as the owner. Co BMR units targeted for lower-income households shall be sold at a price 2.75 times the Santa Clara County median lower income adjusted for the optimum household size for the unit. Do BMR units targeted for very low-income households shall be sold at a price 2.75 times the Santa Clara County median very low income adjusted for the optimum household household size. 21.62.80 Resale Restrictions To ensure the continued affordability of BMR units, a Resale Restriction will be recorded against all units. The Agreement shall restrict the price at which a BMR unit may be resold. The Agreement shall specify that the BMR home must be occupied by the owners, and can not be rented at any time in the future, except upon approval by the City as specified in section 21.62.70.B. In the event of resale, subsequent owners must meet the same qualifications as the original owner and must be pre-approved for purchase by the City. The agreement shall also grant the City the right-of-first refusal to purchase a BMR unit each time it is sold. Draft Density Bonus Ord,_ ..~ce Page 7 December 10, 1990 21.62.90 Application Procedure A developer may submit to the Planning Department a preliminary proposal for the development of housing pursuant to this chapter prior to the submittal of any formal application. The City shall, within 90 days of receipt of a preliminary proposal provide the housing developer in writing, comments and preliminary evaluation of the project. Such comments or preliminary evaluation does not bind future city actions. Be Formal application shall follow the review process stated in Chapter 21.06 of the Campbell Municipal Code established by the City and shall in addition provide additional information as specified in this chapter: o Provide a written statement specifying the desired density increase, incentive requested and the number, type, location, size and construction scheduling of all dwelling units. Submit a project financial report (pro forma), as required. Or any other information requested by the Planning Director. & 1¢rc tnj 750 RIDDER PARK DRIVE SAN JOSE, CALIFORNIA 95190 IN THE C~TY OF ,~,,..A.,XJ~..~E~L .......................... STATE OF CALIFORNIA COUNTY OF SANTA CLARA City of Campbell 75 North Central Avenue Campbell, CA 95008 ' SUMMARY ORDINANC..E OF No ....... KB'0~'YYN~' "K "T P/T "f4RRN~ff~NY .............................................................. STATE OF CALIFORNIA, \ COUNTY OF SANTA CLARA] ss. i~e ~t~ ~s; a~ wet ii iA~ ~ I~ ~ I~ I~ Iii ~ I~ p~al c~fk Of tl~ ~tet a~ cay al ~ln J~ n ~ ~ty of Santa Oa~e. Slate of ~hl~. I~l ~lid San ~ I.qe~cu~ t;~S ~ and was lpg. of t~ C~*~l ~ of trw Stale of ~l~n~. ~. is ~d ~ ~id ~l~. ~ ~d IM ~l~ ~ ~ ~f of Mh ~, ~01~, l~a~, ~a~, faces ~ ~1~: I~lt II al 1~4 December 19; 1990 ................... CITY COUNCIL MINUTES - DECEMBER 10, 1990 Public Hearing - Introduction of Ordinance - C/ty-initiated Text Amendment establishing a Density Bonus Ordinance - ~ 90-03 This is the time and place for a public hearing to consider a City-initiated text amen~t to the Can~bell Municipal Code adding Chapter 21.62 establishing a Density Bonus. Senior Planner Tsuda - Staff S~,,,~ry Report dated 12/10/90. The Mayor declared the public hearing opened. There being no d/scussion by members in the audience, M/S: Burr/Watson - to close the public hearing. Motion adopted ~1¥. M/S: Surr~~ - to lnt_rodu~ for fJ.r~ zeadincj Oz, t~ 1825 adoptl~ a text ammdmerfc to the ~ Nunict~ (kxie addincj ~.~ 21.62. t,~:ion adopted blt the foLtowincj rol/ call vote: The City Clerk read the Ordinance title. M/S: Conant/Burr - to waive further reading. Motion adopted unanimously. M/S: Burr/Watsom - to intrcxiuce for first readinG Oz~{~ No. 1826. Motion adopted b~r the follcmrimg zoll call ~ce: AYES: Cxmnci~: NOES: (bunci~: A~S~: Counci~: The City Clerk read .the Ordinance title. M/S: Conant/Burr - to waive further reading. Mo~ion adopted unanimously. CITY OF CAMPBELL TO: FROM: DATE: SUBJECT: Mayor and Members of the Ci,~y~ouncil Randy Tsuda, Senior PlanneK~~2k~ Monday, December 10, 1990 Density Bonus Ordinance - TA 90-03 The Redevelopment Agency counsel has suggested a few minor changes to the Density Bonus Ordinance as shown below. Proposed additions are shown in underlined text and proposed deletions are shown in str;.l~co~',:~. text. 21.62.30 Applicability go All housing developments containing greater ~,han 5 or more units (excluding density bonus units) are eligible for a density bonus of 25%, and an additional incentive, to developers agreeing to construct at least: 21.62.50 General Requirements A Master Regulatory Agreement shall be made between the developer and the City which indicates the household type, number, type, location, size and construction scheduling of all BMR units and such information as shall be required by the City for the purpose of determining the developers compliance with this chapter. The Master Regulatory Agreement will be required in a form acceptable to the City. 21.62.60 Requirements for Rental Housing Projects. go All BMR units shall be occupied by the household type specified in the written agreement required under Section 21.62.50.B C. The developers obligation to maintain BMR units as affordable housing shall be evidenced by a Master Regulatory Agreement that shall be recorded as a Deed Restriction running with the land. dbomods.mern(mc7) CITY OF CAMPBELL COUNCIL REPORT Meeting Date: Category: Initiating Dept: Title: December 10, 1990 Item # PUBLIC HEARINGS AND INTRODUCTION OF ORDINANCES Planning Department Public Hearing - Introduction of Ordinance - City - Initiated Text Amendment establishing a Density Bonus - TA 90-03 pLANNING COMMISSION RECOMMENDATION The Planning Commission recommends that the City Council take the following actions: GRANT a Negative Declaration. GIVE FIRST READING OF AN ORDINANCE, adopting a Text Amendment to the Campbell Municipal Code adding Chapter 21.62. State Requirements A. The State Density Bonus Law requires that local governments grant a density bonus of at least 25% above the general plan density range to a housing developer whose project contains one of the following: 20% of the units for lower-income households. 10% of the units for very low-income households. 50% of the units for senior citizens. Bo In addition to granting a density bonus to developers that meet the aforementioned requirements, the jurisdiction must provide at least one other incentive or make written findings that the additional incentive is not necessary for affordability. Adoption of an implementing ordinance by each jurisdiction is required. Summary of Proposed Ordinance A. Incentives: State law specifies that one of the incentives offered must include a procedure for modifying development and zoning standards. The State-mandated additional incentive(s) or concession(s) include, but are not limited to the following list: 2. 3. 4. 5. 6. Reduction of parking requirements. Reduction of open space requirements. Reduction of set back requirements. Reduction of park dedication fees. Reduction of application or construction fees. Provision of tax exempt financing or other financial assistance as approved by their, ~~edevelopment Agency Board. Approved by City Manager City Council Report - L~.,sity Bonus Ordinance December 10, 1990 2 B. Terms The Below Market Rate (BMR) units must be reserved for the targeted income range for a minimum of 30 years if both a density bonus and an additional incentive are granted, 10 years if only the density bonus is granted. 2o The ordinance requires that the owners of BMR units record a Master Regulatory Agreement which specifies the owners obligation to maintain the units as affordable, monitoring procedures and such information determining compliance with this ordinance. C. Eligibility: Eligible Campbell residents will have first preference for BMR units; second preference will be given to eligible persons employed within the City Limits of Campbell. The Planning Commission or public raised no major concerns with the ordinance. RECOMMENDATION SUMMARY The Planning Commission voted (6-0-0-1) to recommend approval of the proposed Text Amendment. Attachment~: 1. Ordinance with Enclosures 2. Planning Commission Resolution No. 2713 3. Planning Commission Minutes of November 27,1990 4. Staff Reports Prepared by: Curtis Banks, Planning Intern RESOLUTION NO. 2713 PLANNING COMMISSION _BEING A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF CAMPBELL APODPTING A TEXT AMENDMENT TO THE MUNICIPAL CODE OF THE CITY OF CAMPBELL, CALIFORNIA ADDING CHAPTER 21.62. CITY- INITIATED FILE NO. TA 90-03. After due consideration of all evidence presented and based on upon the following findings, the Planning Commission did determine that there is significant need to add Chapter 21.62 to the Campbell Munidpal Code, as follows: The Planning Commission held a public hearing for consideration of the addition of Chapter 21.62 of the Campbell Municipal Code on November 27, 1990. Government Code Section 65915 requires that local governments adopt an ordinance implementing the State Density Bonus Law. Government Code Section 65915 requires the implementing ordinance to include a procedure for evaluating preliminary applications and to specify which incentives will be offered developers of qualified projects. An Initial Study has been prepared on the ordinance, as required by the California Environmental Quality Act. Based upon the foregoing findings of fact, the Planning Commission concludes that: A Negative Declaration is appropriate as no significant environmental impacts have been identified to be associated with the project which cannot be mitigated. The amendment is consistent with State requirements pertaining to the State Density Bonus Law. o The proposed amendment contains implementation measures required by Government Code Section 65915. The proposed amendment will not be detrimental to the health, safety, peace, morals, comfort, or general welfare of persons residing or working in the neighborhood of such proposed use, or be detrimental Planning Commission Resomtion 2713 TA 90-03 2 or injurious to property and improvements in the neighborhood or to the general welfare of the City. The proposed amendment facilitates meeting the City's share of regional housing needs for lower-income and very low-income households. Implementation of this amendment will contribute to compliance with housing element law as well as density bonus law. The Planning Commission does hereby adopt a Resolution recommending the City Council adopt the attached Ordinance adding Chapter 21.62 to the Campbell Municipal Code. PASSED AND ADOPTED at a regular meeting of the Planning Commission of the City of Campbell this 27th day of November, 1990, by the following roll call vote: AYES: Commissioners: Dougherty, Fox, Higgins, Meyer Kennedy, Wilkinson, Chariman Perrine NOES: Commissioners: None ABSENT: Commissioners: Alne ABSTAIN: Commissioners: None APPROVED: Jay Perrine, Chairman ATTEST: Steven T. Piasecki, Secretery 750 RIDDER PARK DRIVE SAN JOSE, CALIFORNIA 95190 IN THE CITY OF CAMPBELL STATE OF CALIFORNIA COUNTY OF SANTA Ct_ARA City of Campbell 75 North Central Avenue ............ ...... ................................................................. :... ............ hI~%IC~..f~F...~EA~IN~. ....... N~1128-6EX) TATE OF CALIFORNIA, \ OUN"FY OF SANTA CLARA] ss. sll ~ ~ ~E~ Of I~ ~ed SliI~. ~ It~ a~ ol ~ht~n years, and ~t ~¢ of I~ ~n ~ M~ N~. a ~ el 9~ral cifculal~ ~bled San J~ ~ ~ ~ly el Sinll ease. Slate el Catil~n~, t~l ~aid San J~ Me[cu~ N~ ~ and was ~. el l~ O~e~l ~ el I~ Stele el ~l~n~. ~. as pr~d by ~pl~ ~1 el ~ ~1~. and ~ ~1 ~o1~ Io tI~ ~l~a~ls ~ ~bl~d 1~ of &ny ~r el ~h ~. ~of~, Ira~, ~lfin~. races ~ November 28, 1990 ;NOTICE OF HEARING NOTICE IS HE'REBY GIVEN that the City Council of the City of Campbell has set hour of 7:30 p.m., or shortly thereafter, on 'Monday, December 10, 1990, in the City Hall Council Chambers, 70 N. First Street, Camp- - bell, California, as the time and place for ~ public hearing to consider a City-initiated application amending the text of _.~Mu~oic,;,;,;,;,;,;,;,;~L~l"'~!~,,,,m~tablishing a ~ IIIIIli~l'~lI~l~llIowing an increase '4he maximum number of units curren~ available under the City's General,, Plan with the provision of affordable housing, units.;. · . A Negative Declaration has been prepare(( for . this proiect. Plans, elevations, legal descrip- tions and/or other supporting documentation is on file in the Planning Department, 70 North First Street, Campbell, California. Interested persons are invited to appear and be' ,.heard at said hearing. Please be advised that if you challenge the nature of the above prOject !n court, you may be limited to raising only those ' ~ssues you or someone else raised at the public T. hearing described in the Notice, or in written, "correspondence:. delivered to the. City,' of":;, ,Campbell City Clerk's Office at or prior 4o the public hearing. Ouestions may be addressed to the City Planning Office at 866-2140. CITY COUNCIL CITY OF CAMPBELL ' BARBARA OLSASKY '. CITY CLERK PLEASE NOTE: When cafl!ng aJ~ l~.is Notice, please refer to File (1128-6EX) 27th November 90 ~ ....................................................... day of ...................................................... 10 ....................................................... PLANNING COMMISSION MINUTES NOVEMBER 27, 1990 DRAFT 5. TA 90--03 City-initiated Public Hearing to consider a City-initiated application amending the text of the City's Municipal Code establishing a Density Bonus Ordinance allowing an increase in the maximum number of units currently available under the City's General Plan with the provision of affordable housing units. Chairperson Perrine read the Application into the record. Randy Tsuda, Senior Planner, reviewed the proposed Text Amendment and discussed the Staff Report. He provided a brief overview of the document, as follows: - This is a local implementation measure required by the State for cities to grant a density bonus of at least 25 percent to encourage affordable housing to people with, very low, low income, or seniors on fixed incomes. - That cities must also provide at least one other incentive or make findings that an incentive is not necessary for affordability. - Terms for Below Market Rate is for 30 years, however, 10 years if only the density bonus is granted. - Eligibility - Process will require that applicants requesting density bonus must be approved by City Council Commission Discussion: Commissioner Fox asked what the possible highest bonus would be. In response Mr. Tsuda stated that the State does not specify how many incentives a jurisdiction is able to offer, however, he stated that at least one incentive is required to ensure affordability. Commissioner Higgins asked what would happen if a property owner later wanted to convert the affordable housing into higher priced housing. Mr. Tsuda explained that if a city grants a density bonus and one incentive then the unit would have to remain affordable for thirty years. Commissioner Dougherty asked if the affordability of a unit could be extended and Mr. Tsuda stated laws governing the length of time a unit must be kept affordable is mandated by the State and could not be extended. Commissioner Dougherty requested that additional language be included to ensure that preliminary comments made by Staff to applicants does not bind the Commission or the City Council's decisions. city Attorney, William Seligmann, suggested that additional language be added under Section 21.62.90 (A) to the last sentence, as follows: ". . , such comment or preliminary evaluation does not find future City actions." PLANNING COMMISSION MINUTES -2- NOVEMBER 27, 1990 Commissioner Meyer-Kennedy asked if the housing units would be dispersed within the housing complexes. Mr. Tsuda indicated that low income units would be dispersed throughout the housing complexes and that any relocation of these units would require approval by the City. Discussion ensued between Commissioners and staff regarding the following: Park dedication fees Transfer of density bonuses to other developments The Public Hearing on TA 90-03 was opened. Public Comments: There was no public comment. M/S: Meyer-Kennedy, Fox NOTION TO CLOSE THE PUBLIC HEARING WAS UNANIMOUSLY APPROVED. M/S: Dougherty, Meyer-Kennedy NOTION TO GRANT ANEGATIVE DECLARATION AND ADOPT RESOLUTION NO. 2713, APPROVING TA 90-03, AS AMENDED WAS UNANIMOUSLY APPROVED BYTHEFOLLOWING ROT~.~T~. VOTE: AYES: Commissioners: NOES: Commissioners: ABSENT: Commissioners: Higgins, Fox, Meyer-Kennedy, Dougherty, Wilkinson, Perrine None Alne The adopted resolution, attached hereto, is made a part of these minutes. * * * ITEM NO. 5 STAFF REPORT - PLANNING COMMISSION MEETING OF NOVEMBER 27,1990 TA 90-03 Public Hearing to consider a City-Initiated application amending the text of the City's Municipal Code to establish a Density Bonus Ordinance allowing an increase in the maximum number of units currently available under the City's General Plan with the provision of affordable housing units. (Tentative City Council date: 12110190). STAFF RECOMMENDATION That the Planning Commission take the following actions: Recommend that the City Council grant a Negative Declaration. ADOPT A RESOLUTION incorporating the attached findings, recommending that the City Council adopt the attached Text Amendment. BACKGROUND On March 26, 1990 the State amended Government Code 65915, relating to density bonus requirements. The State Density Bonus Law requires that local governments must grant a density bonus of at least 25% above the general plan density range to a housing developer whose project contains one of the following: 20% of the units for lower-income households. 10% of the units for very low-income households. 50% of the units for senior citizens. In addition to granting a density bonus to developers that meet the aforementioned requirements, the jurisdiction must also provide at least one other incentive or make written findings that the additional incentive is not necessary for affordability. Adoption of an implementing ordinance by each jurisdiction is required. SUMMARY OF PROPOSED CITY ORDINANCE A. Incentives State law specifies that one the incentives offered must include a procedure for modifying development and zoning standards. Staff Report for TA 90-0. 2 November 27, 1990 Be C. The State-mandated additional incentive(s) or concession(s) include, but are not limited to the following list: 4. 5. 6. Reduction of parking requirements. Reduction of open space requirements. Reduction of set back requirements. Reduction of park dedication fees. Reduction of application or construction fees. Provision of tax exempt financing or other financial assistance as approved by the City Council or Redevelopment Agency Board. Terms The Below Market Rate (BMR) units must be reserved for the targeted income range for a minimum of 30 years if both a density bonus and an additional incentive are granted, 10 years if only the density bonus is granted. The ordinance requires that the owners of BMR units record a Master Regulatory Agreement which specifies the owners obligation to maintain the units as affordable, monitoring procedures and such information determining compliance with this ordinance. Rents According to State Law, rents for BMR units will be as follows: Rents for lower-income households shall not exceed 30% of 60% of the Santa Clara median income, adjusted for household size. Rents for very low-income households shall not exceed 30% of 50% of the Santa Clara median income, adjusted for household size. E igibflity Eligible Campbell residents will have first preference for BMR units; second preference will be given to eligible persons employed within the City Limits of Campbell. Process All applications requesting a density bonus must be approved by the City Council. Staff Report for TA 90-0b 3 November 27,1990 F. Pro Forma To evaluate the financial need for the State mandated incentive the ordinance requires the developer to submit a project financial report (pro forma). If the City retains a consultant to review the financial report the cost of the consultant will be paid by the developer with the following exceptions: If the applicant is a non profit organization the cost of the consultant may be paid by the City upon approval of the City Council. If the proposal is in the redevelopment area, the Redevelopment Agency may pay the cost of the consultant, at the discretion of the Agency Director. Attachments: 1. Findings for Approval 2. Exhibit A - Draft Density Bonus Ordinance 3. Initial Study Submitted by: Approved by: Curtis Banks, Planning Intern Steve iasecki, Planning Director FINDINGS FOR APPROVAL OF A TEXT AMENDMENT TO THE CAMPBELL MUNICIPAL CODE CHAPTER 21.62 TO ADOPT A DENSITY BONUS ORDINANCE. After due consideration of all evidence presented and based on upon the following findings, the Commission did determine that there is significant need to add Chapter 21.62 to the Campbell Municipal Code, as follows: The Commission held a public hearing for consideration of the addition of Chapter 21.62 of the Campbell Municipal Code on November 27, 1990. o Government Code Section 65915 requires that local governments adopt an ordinance implementing the State Density Bonus Law. Government Code Section 65915 requires the implementing ordinance to include a procedure for evaluating preliminary applications and to specify which incentives will be offered developers of qualified projects. An Initial Study has been prepared on the ordinance, as required by the California Environmental Quality Act. Based upon the foregoing findings of fact, the Planning Commission concludes that: A Negative Declaration is appropriate as no significant environmental impacts have been identified to be associated with the project which cannot be mitigated. The amendment is consistent with State requirements pertaining to the State Density Bonus Law. The proposed amendment contains implementation measures required by Government Code Section 65915. The proposed amendment will not be detrimental to the health, safety, peace, morals, comfort, or general welfare of persons residing or working in the neighborhood of such proposed use, or be detrimental or injurious to property and improvements in the neighborhood or to the general welfare of the City. The proposed amendment facilitates meeting the City's share of regional housing needs for lower-income and very low-income households. Implementation of this amendment will contribute to compliance with housing element law as well as density bonus law. ENVIRONNIENTAL IMPACT ASSESSMENT ENVIRONMENTAL C:HEC)CI. IST TO BE USED BY T~IE CITY O!f CAMPBEI! IN MAKING IINITIAL ~TUDY L ADDRESS OF PROPONENT: DaT AGENCY ~Q~ING CHEC~ST: il. ENV ! ~AL, IMPACTS (EXPLANATIONS OF AlL Y~S AND ~ AJqSWE:RS ARE: RE:GJUIRED ON ATTACHED SHEET) YES MA~FBE NO 1. EARTH. Will the proposal result in: a. Unstable earth conditions or in changes in geologic substructures? b. Disruptions, displacements, compaction or overcovering of the soil? c. Change in topography or ground surface relief features? d. The destruction, covering or modification of any unique geologic or physical features? e. Any increase in wind or water erosion of soils, either on or..off Zhe site? f. Changes in deposition or erosion of beach sands, or changes in siltation, deposition or erosion which ma~ modif~ the channel of a river or stream or the bed of the ocean or an~ ba~, inlet or lake? g. Exposure of people or propert~ to geologic hazards such as earthquakes, landslides, mudslides, ground failure, or similar hazards? n 1 of 6 pages 2. AIR. Will proposal result in: a. Substantial air emissions or deterioration of ambient air quality? b. The creation of objectionable odors? c. Alteration of air movement, moisture or tempera- ture, or any change in climate, either locallw or regionalI~? 3. WATER. Will the proposal result in: a. Changes in currents, or the course or direction of water movements, in either marine or fresh waters? b. Changes in absorption rates, ~rainage ~atterns, or the rate and amount of surface water runoff? c. Alterations to the course or flow of flood waters? d. Change in the amount of surface water in anw water body? e. Discharge into surface waters, or in any altera- tion of surface water quality, including.but not limited to temperature, dissolved o~ggen or turbidity? f. Alteration to the direction or rate of flow of ground waters? g. Change in the quantit~ of ground waters, either through direct additions or withdrawals, or through interception of an aquifer by cuts or excavations? h. Substantial reduction in the amount of water otherwise available for public water supplies? i. Exposure of people or property to water related hazards such as flooding or tidal waves? 4. PLANT LIFE. Will the proposal result in: a. Change in the diversit~ of species or number ofany species of plants (including trees, shrubs, grass, crops, microflora and aquatic plants)? b. Reduction of the numbers of any unique, rare or endangered species of plants? c. Introduction of new species of plants into an area, or in a barrier to the normal replenishment of existing species? d. Reduction in acreage of any agricultural crop? 0 0 ID ID ID 0 2 of 6 ~ges MAYBE: 10. 11. 12. 5. ANIMAL LIFE. Will the proposal result in: a. Change in the diversit~ of species, or numbers of an~ species of animals (birds, land animals including reptiles, fish and shellfish, benthic organisms, insects or microfauna) ? b. Reduction of the numbers of any unique, rare or endangered species of animals? c. Introduction of new species of animals into an area, or result in a barrier to the migration or movement of animals? d. Deterioration to existing fish or wildlife habitat? 6. NOISE. Will the proposal result in: a. Increases in existing noise levels? b. Exposure of people to severe noise levels? 7. LIGHT AND GLARE. Will the proposal produce new light or glare? 8. LAND USE. Will the proposal result in a substantial alteration of the present or planned land use of an area? 9. NATURAL RESOURCES. Will the proposal result in: a. Increase in the rate of use of any natural resources? b. Substantial depletion of any nonrenewable natural resource? RISK OF UPSET. Does the proposal involve a risk of an explosion or the release of hazardou~ sub- stances (including, but not limited to, oil, pesticides, chemicals or radiation) in the event of an accident or upset conditions? POPULATION. Will the proposal alter the location, distribution, density, or growth rate of the hnwmn population of an area? HOUSING. Will the proposal affect existing housing, or create a demand for additional housing? 3 of 6 pages MAYBE: NO 13o . 14. 15. 16. TRANSPORTATION/CIRCULATION. Will the proposal result in: a. Generation of substantial additional veh/cular movement. b. Effects on existing parking facilities,-'or. demand for new parking? c. Substantial impact upon existing transportation systems? d. Alterations to present patterns of circulation or movement of people and/or goods? e. Alterations to waterborne, rail or air traffic? f. Increase in traffic hazards to motor vehicles, bicyclists or pedestrians? PUBLIC SERVICES. Will the proposal have an effect upon, or result in a need for new or altered governmental services in any of the following areas: Fire protection? .. Police protection? Schools? Parks or other recreatiomal facilities? Maintenance of public facilities, including roa ds ? f. Other governmental services? ENERGY. Will' the proposal result in: Use of substantial amounts of fuel or energy? Substantial increase in demand upon existing sources of energ9, or require the development of new sources of energg? UTILITIES. Will the proposal result in a need for new s~stems, or substantial alterations to the following utilities: a. Power or natural gas? b. Communications swstems? c. Water? d. Sewer or septic tanks? e. Storm water drainage? f. Solid waste and disposal? D 4 of 6 pages MAYBE: NO 17. HUMAN HEALTH. Will the proposal result in: 18. 19. 20. a. Creation of any health hazard or potential health hazard (excludingmsntal health)? b. Exposure of people to potential health hazards? AESTHETICS. Will the proposal result in the obstruction of any scenic vista or view open to the public, or will the proposal result in the creation of an aestheticall~ offensive site open to public view? RECREATION. Will the proposal result in an impact upon the'quality or quantity of existing recreational opportunities? ARCHEOLOGICAL/HISTORICAL. Will the proposal result in an alteration of a significant archeological or historical site, structure, object or building? 21. MANDATORY FINDINGS OF SIGNIFICANCE. '. a. Does the project have the potential to degrade the quality of the environment, substantially reduce the habitat of a Fish or wildlife'species, cause a fish or wildlife population to drop below self sustaining levels, threaten to eliminate a plant or animal community, reduce the number or restrict the range of a rare or endangered plant or animal or eliminate important examples of the major periods of California history or prehistor~? b. Does the~roject have the potential to ach/eve short-term, to the disadvantage of long-term, environmental goals? (A short-term impact on the environment is one which occurs in a re/a- tively brief, definitive period of time while long-term impacts will endure well into the future.) c. Does the project have impacts which are indiv' idually limited, but cumulatively considerable? (A project may impact on two or more separate resources where the impact on each resource is relativel~ small, but where the effect of the total of those impacts on the environment is significant.) d. Does the project have environmental effects which will cause substantial adverse effects on human beings, either directly or indirectly? 5 of 6 pages / IV. DE?I'F.s~ ! I~U%T ! Of 4 AF'*I'E:R RE'VIE:WING THI~ E:NVIRON/d~NTAL. INIE'OR/4ATION SUBMIT~D BY ~ API)L. lC:ANt', AND AFTE:R COM'PI.E:TING 'rilE: ~'NVIFIONME:NTAI. Cl41~CKI. IST USE: BY TH~ CITY OF C)JWPBEI. I. IN IL~KING ~ I:NVIRONME~IYAI. &BSe"S·Id~NT I find the proposed project COULD NOT have a significant effect on the environment, and a NEGATIVE DECLARATION will be prepared. I find that although the proposed project could have a significant effect on the environment, there will ~ot be a significant effect in this case because the miti- gation measures described on an attached shset have been added to the project. A NEGATIVE DECLARATION WILL BE PREPARED. I find the proposed project ~Y have a significant effect on the environment, and an ENVIRONMENTAL I~PACT REPORT is required. 6 of 6 pages DISCUSSION OF ENVIRONMENTAL IMPACTS File No: Applicant: Address: APN: Proiect Description: TA 90-03 City of Campbell City Wide N/A Density Bonus Ordinance Se Will the proposal result in a substantial alteration of the present land use of an area. Discussion State law requires local governments to grant a density bonus of at least 25% above the general plan density range to 'a housing developer whose project contains a spedfied percentage of Below Market Rate housing units. Mitigation Land Use impacts will be evaluated in conjunction with project review for each specific application. 11. Will the proposal alter the location distribution, density, or growth rate of the human population of an area. Discussion Projects that contain the required percentage of Below Market Rate housing will receive a density increase of 25% above the general plan density range. Mitigation Impacts assodated with increased density and population will be evaluated in conjunction with project review for each specific application. CITY OF CAMPBELL TO: FROM: DATE: SUBJECT: Chairman and Members of the Planning Commission Randy Tsuda, Senior Planner ~/,,~_,,~[ Curtis Banks, Planning Intern Thursday, November 15, 1990 Study Session -- Density Bonus Ordinance INTRODUCrION In March 1990, the State of California passed a revised Density Bonus Law. The law requires that the City allow additional housing units and other incentives for projects which include senior or below market-rate housing. The Trammell Crow application (PD 90-07) includes a density bonus for the provision of affordable units, as provided by the State law. The law requires that the City adopt a local implementing ordinance prior to the grant of the density bonus. Staff is currently drafting a local Density Bonus Ordinance to comply with the State requirements. This memorandum will summarize the major provisions of the State law and will discuss how the City's ordinance will be structured. SUMMARY OF STATE LAW The State Density Bonus Law contains the following requirements: ge Governments must grant a density bonus of at least 25% above the general plan density range to a housing developer whose project contains one of the following: 20% of the units for lower-income households. 10% of the units for very low-income households. 50% of the units for senior citizens. Be The jurisdiction must also provide at least one of the following incentives or make written findings that the additional incentive is not necessary for affordability: Reduce development, zoning, or design requirements exceeding state building codes. Allow mixed use zoning with the housing project. Memorandum to Plannir,t, _ommission - Density Bonus Ordinance Pa~e -2- November 15~ 1990 o Provide other regulatory incentives resulting in cost reductions such as an additional density bonus or 20% set-aside funds. Provide other incentives of equivalent financial value. The City ordinance must specify which incentives the City may grant. Co Units must be reserved for the targeted income range for a minimum of 30 years if both a density bonus and an additional incentive are granted, 10 years if only the density bonus is granted. D. The law applies to rental or ownership housing. SUMMARY OF CITY ORDINANCE Staff is in the process of drafting a draft Density Bonus Ordinance for Planning Commission and City Council consideration. Staff is considering the following provisions: A. The State-mandated additional incentive will be selected from the following list. 2. 3. 4. Financial assistance by the Redevelopment Agency. Reduction in Park Dedication Fees. Reduction in application or construction permit fees. Reduction in parking, open space, or setback requirements. Be The below market-rate units shall be evenly dispersed throughout the project. Co The below market-rate units shall be identical in exterior appearance to the market-rate units. Do The developer shall submit a project financial report (pro forma) to allow the City to evaluate the financial need for the additional incentive. The City may retain a consultant to review the financial report. The cost of the consultant shall be born by the developer. If the proposal is located in a redevelopment area, the Redevelopment Agency may pay the cost of the consultant, at the discretion of the Agency Director. Eo Deed restrictions shall be recorded which preserve the affordability of the below-market rate units for the required period of time. Staff will also be developing systems to ensure that the units are rented or sold at affordable levels and that the occupants are very low or low income households. Memorandum to Plannino _ommission - Density Bonus Ordinance Pase -3- November 15,1990 CONCLUSION This memorandum discusses the general requirements of the State law and the significant provision that staff is considering for the City ordinance. This ordinance is scheduled for hearings at the same meetings on which the South of Campbell Avenue Area General Plan Amendment will be heard (see chart at right). MEETING DATE Planning Commission Study Session 11/19/90 Planning Commission Hearing 11/27/90 City Council Hearin8 12/10/90 Staff can provide the Commission with additional details at the Study Session. pcdboll-15..mem(mc6) i I tLTL71 VI I UL)LIU/1 Ilk. Jl~ 750 RIDDER PARK DRIVE SAN JOSE, CALIFORNIA 95190 IN THE CITY OF CAMPBELL STATE OF CALIFORNIA COUNTY OF SANTA CLARA City of Campbell 75 North Central Avenue ........... ¢. ~.~.b.~.~ ~...¢.~. ....... 9..5..0.9.8.. ............................................................... ~... OTICE OF HEARINGS ,. (lll4-1EX) ATE OF CALIFORNIA, \ IUNTY OF SANTA CLARA) ss. Ii'si (~ sworn, c~pos~ and ~: T~I al al I~ he~e~he¢ ~nli~d alibi,was s~ was al and O~ afl ~ I~ and slil{ b IN pr~cipal C~k of Ir~ ~lnler end ~ly Of Sanla Oa~a. Slale ol Calll~. t~t ~id San J~ 1.4e~cu~ N~5 ~ and was ~l~ I ~i~ OI ~al CbCU~l~ as Iai letm ~ ~l~d by ~1~ ~ and ~ le~a~ ~ and ~lelli~e ol I ~al c~ocle(. ~la~. pr~l~ a~ ~ ~ I~ ~id Cily of San J~ ~ ~U ~r,y aa Stale l~n ~ ye$~ ~edi~ I~ fuGl pu~l~n ol I1~ notice ~wein ~nl~; II~l ~1~ I~n ~l~lnd wll pr~e~d ~th words p~inl~ ~li. ~ I~ e~ ~ g~ral lerms. I~ ~r~l and C~lacl~w ol I~ nol~ It~ cb~ OI ~t~h ~ in~ ~ I I~ pnnled c~y, was November 14, 1990 ,d at ~ ..k:~.~. C.~lorr~ 15th ~Y ~ November 90 ~'~n ~ MetcuT 14~. ' ....................................... NOTICE OF HEARINGS mort of ~tte C~ty of C~I h~ ~t the hour of 7:30 Fnt S~'eeL CaraCaS. Oeltfom~ tm' i~bNc hem.lng Ma. Uoneuelo Olealll. for approval of at 531 North Cemr&l Avenue. la · C-1-S ~gNx~x~l¢ommer¢lal) and R-I-S (Single4:amay I~mdenUal) ZOl~g ~ APN: 2:7~-2~0~. ~ No. UP ~0-13. A al~Olica~3n fo~ Ippmvld - of & Ge,3eml PIm Ame~me~t tot the Sou~ of ~fl A~ I~ested ~s ~y aae~ ~ m~ing and Hean~. O~li~ may ~ ~e~d to ~ P~ PLANNING COMMISSION. CiTY OC CAMPBELL ENVlFK)NMENTAL IMPACT ASSESSMENT ENVIRONMENTAL CHECKLIST 'TO BE USED BY THE CITY OF CAMPBELL IN MAKING IINITIAL STUDY L_ DATE OF CHECKLIST S~MITTED: AGENCY REQUIRING CHECKLIST: !1. ENVIRONMENTAL IMPACTS (E.~LANATION$ OF' ALL YES AND MAYBE ~"cNSWI'"RS ARE REQUIRED ON ATTACHED SHEET) YES MA~'BE NO 1. EARTH. Will the proposal result in: a. Unstable earth conditions or in changes in geologic substructures? b. Disruptions, displacements, compaction or overcovering of the soil? c. Change in topography or ground surface relief features? d. The destruction, covering or modification of any unique geologic or physical features? e. Any increase in wind or water erosion of soils, either on or.~ff the site? f. Changes in deposition or erosion of beach sands, or changes in siltation, deposition or erosion which may modify the channel of a river or stream or the bed of the ocean or any bay, inlet or lake? g. Exposure of people or property to geologic hazards such as earthquakes, landslides, mudslides, ground failure, or similar hazards? [] [] ~ [] [] ~ 1 of 6 pages YE:S M.~Y~E: NO 2. AIR. Will proposal result in: a. Substantial air emissions or deterioration of ambient air quality? b. The creation of objectionable odors? c. Alteration of air movement, moisture or tempera- ture, or any change in climate, either locally or regionally? 3. WATER. Will the proposal result in: a. Changes in currents, or the course or direction of water movements, in either marine or fresh waters? b. Changes in absorption rates, drainage patterns, or the rate and amount of surface water runoff? c. Alterations to the course or flow of flood '~ waters? d. ~Change in the amount of surface water in any water body? e. Discharge into surface waters, or in any altera- tion of surface water quality, including.but not limited to temperature, dissolved oxygen or turbidity? f. Alteration to the direction or rate of flow of ground waters? g. Change in the quantity of ground waters, either through direct additions or withdrawals, or through interception of an aquifer by cuts or excavations? h. Substantial reduction in the amount of water otherwise available for public water supplies? i. Exposure of people or property to water related hazards such as flooding or tidal waves? 4. PLANT LIFE. Will the proposal result in: a. Change in the diversity of species or number of any species of plants (including trees, shrubs, grass, crops, microflora and aquatic plants)? b. Reduction of the numbers of any unique, rare or endangered species of plants? c. Introduction of new species of plants into an area, or in a barrier to the normal replenishment of existing species? d. Reduction in acreage of any agricultural crop? [] o o o o o [] [] [] 2 of 6 pages 5. ANIMAL LIFE. Will the proposal result in: a. Change in the diversity of species, or numbers of any species of animals (birds, land animals including reptiles, fish and shellfish, benthic organisms, insects or microfauna)? b. Reduction of the numbers of any unique, rare or endangered species of animals? c. Introduction of new species of animals into an area, or result in a barrier to the migration or movement of animals? d. Deterioration to existing fish or wildlife habitat? 6. NOISE. Will the proposal result in: We 10. 11. 12. a. Increases in existing noise levels? b. Exposure of people to severe noise levels? LIGHT AND GLARE. Will the proposal produce new light or glare? LAND USE. Will the proposal result in a substantial alteration of the present or planned land use of an area? 9. NATURAL RESOURCES. Will the proposal result in: a. Increase in the rate of use of any natural resources? b. Substantial depletion of any nonrenewable natural resource? RISKOF UPSET. Does the proposal involve a risk of an explosion or the release of hazardous sub- stances (including, but not limited to, oil, pesticides, chemicals or radiation) in the event of an accident or upset conditions? POPULATION. Will the proposal alter the location, distribution, density, or growth rate of the human population of an area? HOUSING. Will the proposal affect existing housing, or create a demand for additional housing? n o ~ [] [] 3 of 6 pages YE:S MAYBE: NO 73.. 14. 15. 16. TRANSPORTATION/CIRCULATION. Will the proposal result in: a. Generation of substantial additional vehicular movement. b. Effects on existing parking facilities, demand for new parking? c, Substantial impact upon existing transportation systems? d. Alterations to present patterns of circulation or movement of people and/or goods? e. Alterations to waterborne, rail or air traffic? f. Increase in traffic hazards to motor vehicles, bicyclists or pedestrians? PUBLIC SERVICES. Will the proposal have an effect upon, or result in a need for new or altered governmental services in any of the following areas: a. Fire protection? b. Police protection? c. Schools? d. Parks or other recreational facilities? e. Maintenance of public facilities, including roads? f. Other governmental services? ENERGY. Will' the proposal result in: Use of substantial amounts of fuel or energy? Substantial increase in demand upon existing sources of energy, or require the development of new sources of energy? UTILITIES. Will the proposal result in a need for new systems, or substantial alterations to the following utilities: a. Power or natural gas? b. Communications systems? c. Water? d. Sewer or septic tanks? e. Storm water drainage? f. Solid waste and disposal? [] [] [] [] [] [] 4 of 6 pages Y~:S ( MAYB£ NO 17. HUMAN HEALTH. Will the proposal result in: 18. 19. 20. a. Creation of any health hazard or potential health hazard (excluding mental health)? b. Exposure of people to potential health hazards? AESTHETICS. Will the proposal result in the obstruction of any scenic vista or view open to the public, or will the proposal result in the creation of an aesthetically offensive site open to public view? RECREATION. Will the proposal result in an impact upon the quality or quantity of existing recreational opportunities? ARCHEOLOGICAL/HISTORICAL. Will the proposal result in an alteration of a significant archeological or historical site, structure, object or building? 21. MANDATORY FINDINGS OF SIGNIFICANCE. a. Does the project have the potential to degrade the quality of the environment, substantially reduce the habitat of a fish or wildlife species, cause a fish or wildlife population to drop below self sustaining levels, threaten to eliminate a plant or animal co~m,,dnity, reduce the number or restrict the range of a rare or endangered plant or animal or eliminate important examples of the major periods of California history or prehistory? b. Does the~roject have the potential to achieve short-term, to the disadvantage of long-term, environmental goals? (A short-term impact on the environment is one which occurs in a rela- tively brief, definitive period of time while long-term impacts will endure well into the future.) c. Does the project have impacts which are indiv- idually limited, but cumulatively considerable? (A project may impact on two or more separate resources where the impact on each resource is relatively small, but where the effect of the total of those impacts on the environment is significant.) d. Does the project have environmental effects which will cause substantial adverse effects on human beings, either directly or indirectly? 5 of 6 pages ! i I. DISCUSSION OF' ENVI~TAL EVALUATI~ L _A AFTER REVIEWING THE ENVIRONMENTAL INFORMATION SUBMITTED BY THE APPLICANT~ AND AFTER COMPLETING TI-I~ ENVIRONMENTAL CHECKLIST USE BY THE CITY OF CAMPBEL/ IN MAKING AN ENVIRONMENTAL ASSESSMENT I find the proposed project COULD NOT have a significant effect on the environment, and a NEGATIVE DECLARATION will be prepared. I find that although the proposed project could have a significant effect on the environment, there will not be a significant effect in this case because the miti- gation measures described on an attached sheet have been added to the project. A NEGATIVE DECLARATION WILL BE PREPARED. I find the proposed project MAY have a significant effect on the environment, and an ENVIRONMENTAL IMPACT REPORT is required. DATE S ! ~NATUR~ ITY I 'J ' 6 of 6 pages DISCUSSION OF ENVIRONMENTAL IMPACTS File No: Applicant: Address: APN: Project Description: TA 90-03 City of Campbell City Wide N/A Density Bonus Ordinance Will the proposal result in a substantial alteration of the present land use of an area. Discussion State law requires local governments to grant a density bonus of at least 25% above the general plan density range to a housing developer whose project contains a specified percentage of Below Market Rate housing units. Mitigation Land Use impacts will be evaluated in conjunction with project review for each specific application. 11. Will the proposal alter the location distribution, density, or growth rate of the human population of an area. Discussion Projects that contain the required percentage of Below Market Rate housing will receive a density increase of 25% above the general plan density range. Mitigation Impacts associated with increased density and population will be evaluated in conjunction with project review for each specific application. CITY OF CAMPBELL TO: FROM: DATE: SUBJECT: Steve Piasecki, Director of Planning Randy Tsuda, Senior Planner Monday, June 18, 1990 State Density Bonus Law The State Density Bonus Law (Government Code Sections 65915 and 65917) was revised on March 26, 1990. The law was effectively immediately since it was an urgency measure. The law relates to the provision of density bonuses and other incentives for projects that include senior, very low, or low income housing. This memorandum will summarize the major provisions of the Density Bonus Law and will discuss its implementation. Summary. of Density Bonus l~w The Density Bonus Law contains the following requirements: Development Incentives A. Governments must grant a density bonus of at least 25% to a housing developer whose project contains one of the following: 20% of the units for lower-income households. 10% of the units for very low-income households. 50% of the units for senior citizens. Income criteria are contained within the law. Bo The jurisdiction must also provide at least one of the following incentives or make written findings that the additional incentive is not necessary for affordability: 1. Reduce development, zoning, or design requirements exceeding state building codes. 2. Allow mixed use zoning with the housing project. 3. Provide other regulatory incentives resulting in cost reductions such as an additional density bonus or 20% set-aside funds. 4. Provide other incentives of equivalent financial value. Ce The density bonus units may be transferred to a project which is not contiguous to the assisted units. Memorandum to Steve, ...secki - Density Bonus Law Pane -2- June 20,1990 Terms of Affordability Units must be reserved for the targeted income range for a minimum of 30 years if both a density bonus and an additional incentive are granted, 10 years if only the density bonus is granted. Procedures The City must adopt an implementing ordinance which specifies the following information: A. The incentives to be offered in addition to the density bonus (ie: lesser setbacks, reduced parking ratio, reduced street improvements). Bo The method and criteria for determining feasibility of project with or without an additional incentive. · pro forma · loan-to-value ratio · debt-coverage ratio The means of enforcing the affordability of the units over the 10 or 30 year term. · development agreement · deed restriction running with the land D. The limitations on the transfer of density bonus housing units. E. The application submittal requirements for a density bonus project. When a preliminary density bonus application is filed, the law allows a government 90 days to determine if the project qualifies for a bonus and/or incentive. Campbell's Implementation of Density Bonus Law Adoption of a Density Bonus Ordinance can be identified as implementation measure in our revised Housing Element and as technique to mitigate government constraints on housing. Bo It may be advantageous to prepare the ordinance in advance or concurrently with the Housing Element. Since we have the potential for a thousand units within SOCA and on the Hamilton School site, the City's efforts to get affordable units in these projects would be enhanced with a established density bonus system. Memorandum to Steve · ...secki - Density Bonus Law Pane -3- June 20,1990 Ce The Redevelopment Agency will also be issuing a Notice of Funding Availability (NOFA) for their 20% set-aside funds. A density bonus program can work well in partnership with a new housing project funded through the NOFA process. De I do not anticipate that a density bonus ordinance would take an inordinate amount of staff time to write, assuming we can obtain samples from the State and other cities.. The most significant policy decisions will be 1) selecting which incentives will be available and 2) identifying the method that will be used to determine the necessity of the incentive. Attachments: Government Code Sections 65915 - 65917 stp6-13.mem(mc2) Exhibit V. DENSITY BONUS LAW AS OF MARCH 26, 1990 Government Code Sections as amended by enactment of Chapter 31 of 1990 (Section 65913.4. was repealed) Chapter 4.3. Density Bonuses and Other Incentives 65915. (a) When a developer of homing proposes a housing development within the jurisdiction of the local government, the city, county, or city and county shall provide the developer incentives for the production of lower income housing units within the development ff the developer meets the requirements set forth in subdivisions (b) and (c). The city, county, or city and county shall adopt an ordinance which shall specify the method of providing developer incentives. (b) When a developer of housing agrees or proposes to construct at least (1) 20 percent of the total units of a housing development for lower income households, as defined in Section 50079.5 of the Health and Safety Code, or (2) 10 percent of the total units of a housing development for very low income households, as defined in Section 50105 of the Health and Safety Code, or (3) 50 percent of the total dwelling units of a housing development for qualifying residents, .as defined in Section 51.2 of the Civil Code, a city, county, or city and county shall either (1) grant a density bonus and at least one of the concessions or incentives identified in Subdivision (h) unless the city, county, or city and county makes a written finding that the additional concession or incentive is not required in order to provide for affordable housing costs as defined in Section 50052.5 of the Health and Safety Code or for rents for the targeted units to be set as specified in subdivision (c), or 2) provide other incentives of equivalent financial value based upon the land cost per dwelling unit. Section 65915 continued (c) A developer shall agree to and the city, county, or city and county shall ensure continued affordability of all lower income density bonus units for 30 years or a longer, period of time if required by the construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy program. Those units targeted for lower income hguseholds, as defined in Section 50079.5 of the Health and Safety Code shall be affordable at a rent that does not exceed 30 percent of 60 percent of area median income. Those units targeted for very low income households, as defined in Section 50105 of the Health and Safety Code shall be affordable at a rent that does not exceed 30 percent of 50 percent of area median income. If a city, county, or city and county does not grant at least one additional concession or incentive pursuant to paragraph (1) of subdivision (b), the developer shall agree to and the city, county, or city and county shall ensure continued affordability for 10 years of all lower income housing units receiving a density bonus. (d) A developer may submit to a city, county, or city and county a preliminary proposal for the development of housing pursuant to this section prior to the submittal of any formal requests for general plan amendments, zoning amendments, or subdivision map approvals. The city, county, or city and county shall, within 90 days of receipt of a written proposal, notify the housing developer in writing of the procedures which it will comply with this section. The city, county, or city and county shall establish procedures for carrying out this section, which shall include legislative body approval of the means of compliance with this section. The city, county, or city and county shall also establish procedures for waiving or modifying development and zoning standards which would otherwise inhi'bit the utilization of the density bonus on specific sites. These procedures shall include, but not be limited to, such items as minimum lot size, side yard setbacks, and placement of public works improvements. (e) The housing developer shall show that the waiver or modification is necessary to make the housing units economically feasible. (f) For the purposes of this chapter, "density bonus" means a density increase of at least 25 percent over the otherwise maximum allowable residential density under the applicable zoning ordinance and land use element of the general plan as of the date of application by the developer to the city, county, or city and county. The density bonus shall not be included when determining the number of housing units which is equal to 10 or 20 percent of the total. The density bonus shall apply to housing developments consisting of five or more dwelling units. Section 65915 continued (g) '.'Housing development" as used in this section means one or more groups of projects for residential units constructed in the planned development of a city, county, or city and county. For purposes of calculating a density bonus, the residential units do not have to be based upon individual subdivision maps or parcels. The density bonus shall be permitted in geographic areas of the housing development other than the areas where the units for the lower income households are located. . (h) For purposes of this chapter, concession or incentive means any of the following: (1) A reduction in site development standards or a modification Of zoning code requirements or architectural design requirements which exceed the minimum'building standards approved by the State Building Standards Commission as provided in Part 2.5 (commencing with Section 18901) of Division 13 of the Health and Safety Code, including, but not limited to, a reduction in setback and square footage requirements and in the ratio of vehicular parking spaces that would otherwise be required. (2) Approval of mixed use zoning in conjunction with the housing project if commercial, office, industrial, or other land uses will reduce the cost of the housing development and ff the commercial, office, industrial, or other land uses are compatible with the housing project and the existing or planned development in the area where the proposed housing project will be located. (3) Other regulatory incentives or concessions proposed by the developer or the city, county, or city and county which result in identifiable cost reductions. This subdivision does not limit or require the provision of direct financial incentives for the housing development, including the provision of publicly owned land, by the city, county, or city and county or the waiver of fees or dedication requirements. (i) If a developer agrees to construct both 20 percent of the total units for lower-income households and 10 percent of the total units for very low income households the developer is entitled to only one density bonus and at least one additional concession or incentive identified in Section 65913.4t under this section although the city, city and county, or county may, at its discretion, grant more than one density bonus. ~ The contents referred to in Section 65913.4 were transferred to Section 65915(g) by Chapter 31, Statutes of 1990. This reference is presumed to be an oversight. 65917. In enacting this chapter it is the intent of the Legislature that the density bonus or other incentives offered by the city, county, or city and county pursuant to this chapter shall contribute significantly to the economic feasibility of lower income housing in proposed housing developments. In the absence of an agreement by a developer in accordance with Section 65913.5 or 65915, a locality shall not offer a density bonus or any other incentive that would undermine the intent of this chapter. b:dbcode.txt