PC Res 4099RESOLUTION N0.4099
BEING A RESOLUTION OF THE PLANNING COMMISSION OF THE
CITY OF CAMPBELL RECOMMENDING THAT THE CITY COUNCIL
ADOPT AN ORDINANCE APPROVING A TEXT AMENDMENT
(PLN2012-163) TO MODIFY THE INCLUSIONARY HOUSING
ORDINANCE TO COMPLY WITH RECENT CASE LAW AND
RECOMMENDING THAT THE CITY COUNCIL CONSIDER REVIEW
OF AN AFFORDABLE HOUSING FEE.
After notification and public hearing, as specified by law and after presentation by the
Community Development Director, proponents and opponents, the hearing was closed.
After due consideration of all evidence presented, the Planning Commission did find as
follows with respect to application PLN2012-163.
1. The project consists of a Text Amendment pertaining to regulatory requirements for the
provision of affordable housing under the Campbell Inclusionary Housing Ordinance
(CMC Ch. 21.24) for compliance with recent case law.
2. The proposed text amendment will protect the Inclusionary Housing Ordinance from
legal challenge and maintain the provision of affordable "for-sale" ownership housing
consistent with Housing Element Policy H-3.2:
Policy H-3.2: Inclusionary Housing: Ensure that new residential development in
Campbell integrates unit affordable to lower- and moderate-income
households, or contributes funds to support affordable housing activities.
Create additional levels of affordability with in the Inclusionary Housing
Ordinance in a way a that does not create a governmental constrain to
housing production.
3. As amended, the Inclusionary Housing Ordinance will now apply only to residential
developments intended for separate ownership ("for-sale") or rental developments in
which a developer receives financial assistance from City or benefits from a regulatory
incentive.
4. Provision of affordable housing, through adoption of an Inclusionary Housing
Ordinance, was found by the City Council to be necessary to satisfy the City's unmet
regional housing needs and to maintain an economically balanced community.
5. The legislature of the State of California has, in Government Code Sections 65302,
65560 and 65800, conferred upon local government units authority to adopt regulations
designed to promote the public health, safety and general welfare of its citizenry;
6. The undergrounding of utility services serve to enhance the aesthetic qualify of the
community and to protect health and safety;
Planning Commission Resolution No. 4099
PLN2012-163
Recommending Approval of a Text Amendment - inclusionary Housing Ordinance
Page 2
7. Review and adoption of this Text Amendment is done in compliance with California
government Code Sections 65853 through 65857, which require a duly noticed public
hearing of the Planning Commission whereby the Planning Commission shall provide
its written recommendation to the City Council for its consideration.
Based upon the foregoing findings of fact, the Planning Commission further finds and concludes
that:
The proposed amendment is consistent with the goals, policies, and actions of the General
Plan;
2. The proposed amendment would not be detrimental to the public interest, health,
safety, convenience, or general welfare of the city; and
3. The proposed amendment is internally consistent with other applicable provisions of
this Zoning Code.
4. The Proposed Text Amendment is exempt from review under the California
Environmental Quality Act as there is no possibility for the project to have a significant
effect on the environment, pursuant to §15061(b)(3).
THEREFORE, BE IT RESOLVED that the Planning Commission recommends that the City
Council adopt an Ordinance approving a Text Amendment (PLN2012-163) to modify the
Inclusionary Housing Ordinance to comply with recent case law as set forth in Exhibit A.
PASSED AND ADOPTED this 26th day of March, 2013, by the following roll call vote:
AYES: Commissioners: Brennan, Razumich, Resnikoff and Reynolds
NOES: Commissioners: None
ABSENT: Commissioners Finch, Gibbons and Roseberry
ABSTAIN: Commissioners: None
_ ~ APPROVED. /~ ~
1 ~ Philip C. Reynolds, air
ATTEST: _~~f i' '-~--'-
Paul Kerr~oyan, Secretary
Exhibit A
Chapter 21.24
INCLUSIONARY HOUSING ORDINANCE
Sections:
21.24.010 -Findings.
21.24.020 -Purpose of chapter.
21.24.030 -Definitions.
21.24.040 -General requirements.
21.24.050 -Time performance.
21.24.060 -Continued affordability and city review of occupancy.
21.24.070 -Alternatives.
21.24.080 -Use of in-lieu housing fees.
21.24.090 - Waiver of requirements.
21.24.100 -Enforcement.
Pg 1 of 26
21.24.010 -Findings.
The City Council finds that:
A. Housing prices and rents in the city of Campbell have increased at a significantly higher rate
than general wages. The lack of affordable housing in Campbell forces many residents to pay
a very high percentage of their income for housing or to commute considerable distances,
adding to air pollution and traffic congestion in Campbell and throughout Santa Clara
County. The lack of affordable housing has made it more difficult to recruit workers from out
of the area, in general, especially workers in lower-paying jobs, potentially affecting the
economic vitality of the Campbell. New housing developments do not, to any appreciable
extent, provide housing affordable to low- and moderate-income households.
B. Continued new housing developments which do not include housing for low- and moderate-
income households will serve to further aggravate the current shortage of affordable housing
by reducing the small remaining supply of undeveloped land.
C. The City Council approved the City's housing element of the general plan which includes a
goal to encourage the provision of housing affordable to a variety of household income levels
(Goal H-3.1 Housing Development; Policy H-3.2a Citywide Inclusionary Housing
Ordinance).
D. Implementation of the inclusionary ordinance is a necessary part of the City's efforts to meet
its general plan housing element goals and objectives and its region wide affordable housing
obligations. Through the inclusionary ordinance, at least fifteen percent of the units in a new
housing development often or more units will be price ~-rent-restricted as units for low- and
moderate-income households. In some circumstances, developers will be offered an option of
providing affordable units off-site or payment of an in-lieu housing fee.
21.24.020 -Purpose of chapter.
The purpose of this chapter is to further the City's efforts to require housing available to very
low-income, low-income and moderate-income households. The city's general plan implements
the established policy of the State of California that each community should foster an adequate
supply of housing for persons at all economic levels.
Providing the affordable units required by this chapter will help to ensure that part of Campbell's
remaining developable land is used to provide affordable housing. An economically balanced
community is only possible if part of the new housing built in the City is affordable to
households with limited incomes. Requiring builders of new housing to include some housing
affordable to households at a range of incomes is fair, not only because new development
without affordable units contributes to the shortage of affordable housing, but also because
zoning and other ordinances concerning new housing should be consistent with the community's
goal to foster an adequate supply of housing for persons at all economic levels. In general,
affordable units within each housing development will serve the goal of maintaining an
economically balanced community.
The inclusionary housing ordinance is required by the council to promote and protect the public
health, safety, and general welfare while preserving and enhancing the aesthetic quality of the
Pg 2 of 26
City. (Ordinance 2060, December 2005 Code Update, Title 21 Zoning, 21.01.030 Purpose).
21.24.030 -Definitions.
As used in this chapter, the following terms shall have the meanings set forth below:
"Affordable ownership cost" means average monthly housing costs during the first calendar year
of a household's occupancy, as determined by the City, including mortgage payments, loan
insurance fees, if any, property taxes, reasonable allowances for utilities and property
maintenance and repairs, homeowners insurance and homeowners association dues, if any, which
do not exceed the following:
1. For lower-income households: one-twelfth of thirty percent of seventy percent of area
median income, adjusted for assumed household size based on presumed occupancy
levels of one person in a studio apartment, two persons in a one bedroom unit, three
persons in a two bedroom unit and one additional person for each additional bedroom
thereafter.
2. For moderate-income households: one-twelfth of thirty-five percent of one hundred ten
percent of area median income, adjusted for assumed household size based on presumed
occupancy levels of one person in a studio apartment, two persons in a one bedroom unit,
three persons in a two bedroom unit and one additional person for each additional
bedroom thereafter.
"Affordable rent" means monthly rent, including utilities and all fees for housing services, which
do not exceed the following:
1. For lower-income households: one-twelfth of thirty percent of sixty percent of area
median income, adjusted for assumed household size based on presumed occupancy
levels of one person in a studio apartment, two persons in a one bedroom unit, three
persons in a two bedroom unit, and one additional person for each additional bedroom
thereafter.
2. For very low-income households: one-twelfth of thirty percent of fifty percent of area
median, adjusted for assumed household size based on presumed occupancy levels of one
person in a studio apartment, two persons in a one bedroom unit, three persons in a two
bedroom unit, and one additional person for each additional bedroom thereafter.
"Affordable units" means living units which are required under this chapter to '~° r°-~~°~a ~~'
available at an affordable housing cost to specified households.
"Applicant" means a person or entity who applies for a residential project and, if the applicant
does not own the property on which the residential project is proposed, also means the owner or
owners of the property.
"Area median income" means area median income for Santa Clara County as published pursuant
to California Code of Regulations, Title 25, Section 6932 (or its successor provision).
"Construction cost index" means the Engineering News Record San Francisco Building Cost
Pg 3 of 26
Index. If that index ceases to exist, the community development director shall substitute another
construction cost index which in his or her judgment is as nearly equivalent to the original index
as possible.
"Eligible household" means a household whose household income does not exceed the maximum
specified in Section 21.24.040 of this chapter for a given affordable unit.
"First approval" means the first of the following approvals to occur with respect to a residential
project: building permit, planned development permit, tentative parcel map, tentative subdivision
map, conditional use permit, site and architectural review permit, or other discretionary city land
use approval.
"For-sale project" means a residential project, or portion thereof, which is intended to be sold to
owner-occupants upon completion.
"Household income" means the combined adjusted gross income for all adult persons living in a
living unit as calculated for the purpose of the Section 8 Program under the United States
Housing Act of 1937, as amended, or its successor.
"Inclusionary housing agreement" means an agreement between the city and an applicant,
governing how the applicant shall comply with this chapter.
"Living unit" means one or more rooms designed, occupied, or intended for occupancy as
separate living quarters, with cooking, sleeping, and bathroom facilities.
"Lower-income household" means a household whose household income does not exceed the
lower income limits applicable to Santa Clara County, as published and periodically updated by
the California Department of Housing and Community Development pursuant to Section
50079.5 of the California Health and Safety Code.
"Market rate unit"' means a housing unit or the legal lot for such unit offered on the open market
at the prevailing market rate for purchase or rental.
"Moderate-income household" means a household whose household income does not exceed one
hundred twenty percent of the area median income Santa Clara County, as published and
periodically updated by the California Department of Housing and Community Development
pursuant to Sectian 50093 of the California Health and Safety Code.
"Pending project" means a land use application that has been accepted by the community
development department as complete before the effective date of the ordinance codified in this
chapter shall be processed in compliance with the requirements in effect when the application
was accepted as complete by the city.
"Rental project" means a residential project, or portion thereof, which is intended to be rented to
tenants upon completion.
"Residential project" means any parcel map, subdivision map, conditional use permit, site and
architectural review permit, building permit, or other city approval, which authorizes ten or more
living units or residential lots, or living units and residential lots with ten or more in
combination. In order to prevent evasion of the provisions of this chapter, contemporaneous
construction often or more living units on a lot, or on contiguous lots for which there is evidence
Pg 4 of 26
of common ownership or control, even though not covered by the same city land use approval,
shall also be considered a residential project. Construction shall be considered contemporaneous
for all units which do not have completed final inspections for occupancy and which have
outstanding, at any one time, any one or more of the following: parcel map, subdivision map, or
other discretionary city land use approvals, or building permits, or applications for such an
approval or permits. A pending project shall not be considered a residential project under this
chapter.
"Very low-income household" means a household whose household income does not exceed the
very low-income limits applicable to Santa Clara County, as published and periodically updated
by the State Department of Housing and Community Development pursuant to Section 50105 of
the California Health and Safety Code.
21.24.040 -General requirements.
A. Percentage requirement. At least fifteen percent of all units in a residential project shall be
made available at .-affordable ownership cost as prescribed in this section
and shall be approved and completed not later than the times prescribed in Section 21.20.040
of this title, unless an alternative requirement is approved as set forth in Section 21.24.060 of
this chapter.
For fractions of units in residential projects, where the fraction is 0.5 or greater, the owner
of the property shall construct the next higher whole number of affordable units, and where
the fraction is 0.49 or less, the owner shall construct the next lower whole number of
affordable units.
B. Exceptions. For purposes of calculating the number of affordable units required by this
section, any additional units authorized as a density bonus pursuant to Chapter 21.20,
(Density Bonus and Affordable Housing Incentives) of this code shall not be counted in
calculating the required number of affordable units. Additionally, the community
development director may grant exceptions to the requirements of this chapter to residential
projects located within the redevelopment project area, upon a finding that such exception is
necessary to effective implementation of the redevelopment plan, while maintaining overall
compliance with affordable housing production requirements set forth in Health and Safety
Code Section 33413.
C. Location and design of affordable units. All affordable units shall be reasonably dispersed
throughout the project and shall be comparable to the design of the market-rate units in terms
of distribution of model types, number of bedrooms, appearance, materials and finished
quality of the market-rate units in the project. There shall not be significant identifiable
differences between affordable units and market-rate dwelling units which are visible from
the exterior ofd the dwelling units and the size and design of the dwelling units shall be
reasonably consistent with the market-rate units in the development. Affordable units shall
have the same access to project amenities and recreational facilities as market rate units.
D. For-sale projects. Affordable units which are constructed in for-sale projects for owner-
occupancy shall be sold at affordable ownership cost to lower-income households and
moderate-income households.
Pg 5 of 26
R D r„1
~, ,
~-E~C~EE'ii~-E}~~32_to:tu~_, Y,;r~ ; , +i,o rar;rla~,+: ,,1 ., a„t .•1,.71 l,a „++o«„a „r „~f;~,•,l.,l,i , ,-..,+~
~E3~t~-{•fiKcHi~if'--H
~E. Priority for rental or purchase of units. Preference in the rental or purchase of affordable
units shall be given, first (for up to ten percent of all affordable units subject to this chapter)
to income eligible employees of the City of Campbell, second to income eligible existing
Campbell residents, and third to income eligible persons employed within the city limits of
the City of Campbell.
21.24.050 -Time performance.
A. An application for first approval of a residential project will not be deemed complete until
the applicant has submitted plans and proposals which demonstrate the manner in which the
applicant proposes to meet the requirements of this chapter, including any plans for the
construction of on-site units pursuant to Section 21.24.040 of this chapter or the applicant's
selection of an alternative means of compliance pursuant to Section 21.24.070 of this chapter.
B. Conditions to carry out the purposes of this chapter shall be imposed on the first approval for
a residential project. Additional conditions maybe imposed on later city approvals or actions,
including without limitation planned development permits, tentative parcel maps, tentative
subdivision maps, conditional use permits, site and architectural review permits, or building
permits. The conditions of approval included with the first approval of the residential project
shall further provide that prior to the recordation of the parcel map or final map in the case of
subdivisions and or prior to the issuance of building permits in the case of all other land use
permits to which this chapter applies, the applicant shall enter into an inclusionary housing
agreement acceptable to the community development director that contains specific
requirements implementing the condition of approval including, but not limited to, as
applicable, the number of affordable units, the level(s) of affordability, location and type of
affordable units, timing of construction of affordable units in relation to the construction of
the market rate units contained in the development, preferences given in selecting occupants,
and amount of the in-lieu fee, if any. The inclusionary housing agreement maybe amended
by the parties, provided the amendment is consistent with the condition of approval imposed
as part of the first approval and the then-existing city approvals. If such proposed amendment
is minor or technical in nature, the community development director shall have authority to
approve or disapprove the amendment on behalf of the city. If such proposed amendment
makes a substantive or material change to the inclusionary housing agreement, such
amendment shall be effective only if, following notice and hearing and such other procedures
as maybe required by law, approved by the city agency that gave the first approval on the
project.
C. No building permit shall be issued for any market rate unit until the applicant has obtained
permits for affordable units sufficient to meet the requirements of Section 21.24.040 of this
Pg 6 of 26
chapter, or received approval of an alternative requirement of Section 21.24.070 of this
chapter. No final inspection for occupancy for any market rate unit shall be completed until
the applicant has constructed the affordable units required by Section 21.24.040 of this
chapter, or completed corresponding alternative performance under Section 21.24.070 of this
chapter. The time requirements set forth in this subsection for issuance of building permits
for market rate units and for final inspections for occupancy for market rate units maybe
modified to accommodate phasing schedules, model variations, or other factors in a
residential project, if the city determines this will provide greater public benefit and an
inclusionary housing agreement acceptable to the community development director or the
Community Development Director's designee pursuant to subsection B of this section so
provides.
21.24.060 -Continued affordability and city review of occupancy.
A. Term of affordability °~~ ~~'° ~~~~~°~'~~. A resale restriction, covenant, deed of trust and/or
other documents acceptable to the community development director or the director's
designee, shall be recorded against each affordable owner-occupied unit. These documents
shall, in the case of affordable units which are initially sold, be for a term of forty-five years
and shall be renewed at the change of each title for a period of forty-five years. The resale
restriction, or other documents authorized by this subsection, and any change in the form of
any such documents which materially alters any policy in the documents, shall be approved
by the community development director or his or her designee prior to being executed with
respect to any residential project.
.,
~.
b
,
l }}~.
l ,
~~~~E
-
!1!1 ~'y-e
m"b
~i+' ti ~'. V
1'.4ti!'~ i r.+~l Y r ~...4 4.~ . .r~vv. t. fly _n Gels}
~B. Eligibility requirements. No household shall be permitted to begin occupancy of an
affordable unit unless the city or its designee has approved the household's eligibility. If the
city or its designee maintains a list of, or otherwise identifies, eligible households, initial and
subsequent occupants of affordable units shall be selected first from the list of identified
households, to the maximum extent possible, in accordance with rules approved by the
community development director or his or her designee.
21.24.070 -Alternatives.
An applicant may elect, in lieu of building affordable units within a residential project, to satisfy
the requirements of this chapter by one of the following alternative modes of compliance,
provided that the applicant includes such election in its application for the first approval of the
Pg 7 of 26
residential project and that the criteria stated in the relevant subsection below are satisfied.
A. Rental units in for-sale projects. Where owner-occupied affordable units are required by
Section 21.24.040 of this chapter, the applicant mawinstead construct as part of the
residential project the same or a greater number of rental units, affordable to lower-income
households and very low-income households. Forty percent of the required fifteen percent, or
six percent ofthe total units in the residential project, shall be offered at affordable rents
exclusively to very low-income households, provided. that where this requirement for verX
low-income units would result in a fraction of a veiy low-income unit, the number of very
low-income units shall be rounded up and the number oflower-income units which need not
be verybw-income units shall be rounded down. Tn-*~~ ~,.,..",,.*~~~,~ ~na ~+ *',~ ~•~^*~ ~~
•k,,,, • ~,,,.*:,,„ ~, ~,~ nnn~~1.-,ca,;~, ,:~.,,..~n,. Substitution of rental units shall be
pr~.uvix vc.a.c iii
allowed under this subsection only if either: (1) the rental units are at least equal in number
of bedrooms to the owner-occupancy units which would have been allowed, or (2) any
comparative deficiency in bedrooms is compensated for by additional units and/or
affordability to households with lower incomes.
B. Off-site construction. The applicant ma~~~~t~construct, or make possible construction
by another developer of, units not physically contiguous to the market-rate units (or units that
are physically contiguous to the market-rate units if the City determines this will provide
greater public benefit and if an inclusionary housing agreement acceptable to the Community
Development Director or his or her designee pursuant to Section 21.24.050(B) of this chapter
so provides) and equal or greater in number to the number of affordable units required under
Section 21.24.040 of this chapter. Off-site construction pursuant to this subsection shall be
approved only i£
Approval has been secured for the off-site units not later than the time the residential
project is approved and completion of the off-site units is secured by a requirement that
final inspections for occupancy for the related market-rate units be completed after those
for the affordable units, provided that the time requirements set forth in this subsection
for final inspections for occupancy for market-rate units maybe modified to
accommodate phasing schedules, model variations, financing requirements, or other
factors in a residential project for the off-site units, if the City determines this will
provide greater public benefit, and if an inclusionary housing agreement acceptable to the
Community Development Director or his or her designee pursuant to Section
21.24.050(B) of this chapter so provides;
2. The off-site units will be greater in number, larger or affordable to households with lower
incomes than would otherwise be required in Section 21.24.040 of this chapter;
3. Financing or a viable financing plan is in place for the off-site units;
4. In the event the off-site units receive any public assistance, the developer of the
residential. project will contribute to the off-site units economic value equivalent to the
value of making on-site units in the developer's residential project affordable; and
5. The City may require that completion of off-site units shall be further secured by the
developer's agreement to pay an in-lieu fee in the amount due under subsection D of this
section in the event the off-site units are not timely completed.
Pg 8 of 26
C. Land dedication. The applicant may Bed-idedicate without cost to the city, a lot or lots
within or contiguous to the residential project, sufficient to accommodate at least the required
affordable units for the residential project. An election to dedicate land in lieu of compliance
with other provisions of this chapter shall be allowed only if:
The value of the lot or lots to be dedicated is sufficient to make development of the
otherwise required affordable units economically feasible, and financing or a viable
financing plan is in place for at least the required number of affordable units; and
2. The lot or lots are suitable for construction of affordable housing at a feasible cost, served
by utilities, streets and other infrastructure, there are no hazardous material or other
material constraints on development of affordable housing on the lot or lots, and land use
approvals have been obtained as necessary for the development of the affordable units on
the lot or lots.
D. In-lieu housing fee. Where a residential project has an approved density of six or fewer units
per acre, the applicant may elect to pay an in-lieu housing fee, instead of developing the
affordable units required in Section 21.24.040 of this chapter, pursuant to the requirements
set forth below in this subsection.
1. The initial in-lieu fee schedule shall be set by City Council fee resolution or other action
of the City Council so that the fee amounts are not greater than the difference between:
(a) the amount of a conventional permanent loan that an inclusionary unit would support
based on the ~'''~~~'~~'~'° r°„* ^~ sales price for the required inclusionary unit; and (b) the
estimated total development cost of prototypical inclusionary units.
2. The City Council may annually review the fees authorized by this subsection D of this
section by resolution, and may, based on that review, adjust the fee amount. For any
annual period during which the City Council does not review the fee authorized by this
subsection, fee amounts shall be adjusted once by the community development director
or his or her designee based on the construction cost index.
In-lieu fees shall be calculated based on the fee schedule in effect at the time the fee is
paid. In-lieu fees shall be paid prior to issuance of building permits for market-rate units
in a residential project. If building permits are issued for only part of a residential project,
the fee amount shall be based only on the number of units then permitted. Where
payment is delayed, in the event of default or for any other reason, the amount of the in-
lieu fee payable under this subsection D of this section shall be based upon the fee
schedule in effect at the time the fee is paid.
21.24.080 -Use of in-lieu housing fees.
A. All in-lieu fees collected under this chapter shall be deposited into a separate account to be
designated the City of Campbell housing trust fund.
B. The in-lieu fees collected under this chapter and all earnings from investment of the fees
shall be expended exclusively to provide or assure continued provision of affordable housing
in the city through acquisition, construction, development assistance, rehabilitation,
financing, rent subsidies or other methods, and for costs of administering programs which
Pg 9 of 26
serve those ends. The housing shall be of a type, or made affordable at a cost or rent, for
which there is a need in the City and which is not adequately supplied in the City by private
housing development in the absence of public assistance.
21.24.090 -Waiver of requirements.
Notwithstanding any other provision of this chapter, the requirements of this chapter shall be
waived, adjusted or reduced if the applicant shows that there is no reasonable relationship
between the impact of a proposed residential project and the requirements of this chapter, or that
applying the requirements of this chapter would take property in violation of the United States or
California Constitution or otherwise result in an unconstitutional application of this chapter. To
receive a waiver, adjustment or reduction under this section, the applicant must file a written
request together with the development application(s) when applying for a first approval for the
residential project, and/or as part of any appeal which the City provides as part of the process for
the first approval. The written request shall provide substantial evidence showing that there is no
reasonable relationship between the impact of a proposed residential project and the
requirements of this chapter, or that applying the requirements of this chapter would take
property in violation of the United States or California Constitution or otherwise result in an
unconstitutional application of this chapter. The City may assume that: (a) the applicant will
provide the most economical inclusionary units feasible meeting the requirements of this chapter;
and (b) the applicant is likely to obtain housing subsidies when such funds are reasonably
available. The waiver, adjustment, or reduction may be approved only to the extent necessary to
avoid an unconstitutional result, after adoption of written findings, based on substantial evidence,
supporting the determinations required by this section.
21.24.100 -Enforcement.
A. The City Council may adopt guidelines, by resolution, to assist in the implementation of all
aspects of this chapter.
B. No permit, license, subdivision approval or map, or other approval or entitlement for a
residential project shall be issued, including without limitation a final inspection for
occupancy or certificate of occupancy, until all requirements applicable to the residential
project at such time pursuant to this chapter have been satisfied.
C. The City Attorney shall be authorized to enforce the provisions of this chapter and all
inclusionary housing agreements, regulatory agreements, resale controls, deeds of trust, or
similar documents placed on affordable units, by civil action and any other proceeding or
method permitted by law.
D. Failure of any official or agency to fulfill the requirements of this chapter shall not excuse
any applicant or owner from the requirements of this chapter.
E. The remedies provided for in this chapter shall be cumulative and not exclusive and shall not
preclude the city from any other remedy or relief to which it otherwise would be entitled
under law or equity.
***
Pg 10 of 26
Chapter 21.20 -DENSITY BONUS AND OTHER INCENTIVES FOR AFFORDABLE
RESIDENTIAL UNITS, SENIOR HOUSING AND CHILDCARE FACILITIES*
Sections:
* Prior ordinance history: Ord. 2043.
21.20.010 -Purpose.
21.20.020 -Definitions.
21.20.030 -Eligibility for density bonuses.
21.20.040 -Density bonuses for affordable and senior housing.
21.20.050 -Incentives and concessions for affordable housing.
21.20.060 -Density bonus for land dedication.
21.20.070 -Density bonus or incentive for childcare facilities.
21.20.080 -Density bonus for condominium conversions.
21.20.090 -Summary tables.
21.20.100 -Calculation of density bonus.
21.20.110 -Standards for incentives and concessions; waiver or modification of development
standards.
21.20.120 -Standards for density bonus residential developments.
21.20.130 -Affordable housing plan submittal; requirements for application for density bonus
and other incentives.
21.20.140 -City review of application for density bonuses and other incentives.
21.20.150 -Developer affordable housing agreement.
21.20.160 -Continued affordability and initial occupancy.
21.20.180 -Implementation and enforcement.
Pg 11 of 26
21.20.010 -Purpose.
The purposes of this chapter of the Campbell Municipal Code, Revised are: (1) to provide
incentives for the production of housing for very low-income, low-income, moderate-income,
and senior households; (2) to provide incentives for the creation of rental housing serving lower
and moderate-income households; (3) to provide incentives for the construction of childcare
facilities serving very low-, low-, and moderate-income households; and (4) to implement
Sections 65915, 65915.5 and 65917 of the California Government Code as required by
Government Code Section 65915(a). In enacting this chapter it is also the intent of the city of
Campbell to implement the goals, objectives, and policies of the city's General Plan Housing
Element, which includes a goal to encourage the provision of housing affordable to a variety of
household income levels and identifies a density bonus policy as one method to encourage the
development of affordable housing (Goal H-5.1 Regulatory Incentives, Program 5.1(a) Density
Bonus).
(Ord. 2102 § 1(part), 2008).
21.20.020 -Definitions.
For purposes of this chapter, the following definitions shall apply. Unless specifically defined
below, words or phrases shall be interpreted as to give this chapter its most reasonable
interpretation.
"Affordable ownership cost" means average monthly housing costs, during the first calendar year
of a household's occupancy, as determined by the city, including mortgage payments, loan
issuance fees, if any, property taxes, reasonable allowances for utilities and property
maintenance and repairs, homeowners insurance, and homeowners association dues, if any,
which do not exceed the following:
1. For moderate-income households: one-twelfth of thirty-five percent of one hundred
ten percent of area median income, adjusted for assumed household size based on presumed
occupancy levels of one person in a studio apartment, two persons in aone-bedroom unit,
three persons in atwo-bedroom unit and one additional person for each additional bedroom
thereafter;
2. For lower-income households: one-twelfth of thirty percent of seventy percent of area
median income, adjusted for assumed household size based on presumed occupancy levels
of one person in a studio apartment, two persons in aone-bedroom unit, three persons in a
two-bedroom unit and one additional person for each additional bedroom thereafter;
3. For very low-income households: one-twelfth of thirty percent of fifty percent of area
median income adjusted for assumed household size based on presumed occupancy levels
of one person in a studio apartment, two persons in aone-bedroom unit, three persons in a
two-bedroom unit and one additional person for each additional bedroom thereafter.
"Affordable rent" means monthly rent, including utilities and all fees for housing services, which
does not exceed the following:
1. For lower-income households: one-twelfth of thirty percent of sixty percent of area
Pg 12 of 26
median income, adjusted for assumed household size based on presumed occupancy levels
of one person in a studio apartment, two persons in aone-bedroom unit, three persons in a
two-bedroom unit, and one additional person for each additional bedroom thereafter;
2. For veryiow-income households: one-twelfth of thirty percent of fifty percent of area
median, adjusted for assumed household size based on presumed occupancy levels of one
person in a studio apartment, two persons in aone-bedroom unit, three persons in a two-
bedroom unit, and one additional person for each additional bedroom thereafter.
"Applicant" means a person or entity who applies for a residential project and, if the applicant
does not own the property on which the residential project is proposed, also means the owner or
owners of the property.
"Area median income" means area median income for Santa Clara County as published pursuant
to California Code of Regulations, Title 25, Section 6932, (or its successor provision).
"Childcare facility" means a commercial child day care facility defined in Campbell Municipal
Code, Revised Section 21.72.020 as a commercial or non-profit child day care facility not
operated as a small or large child day care home and includes infant facilities, preschools, sick
child facilities and school-age day care facilities.
"Density bonus" means a density increase, granted pursuant to this chapter, over the otherwise
allowable maximum residential density on a site.
"Density bonus units" means living units granted pursuant to this chapter which exceed the
otherwise allowable maximum residential density for a residential project.
"Development standard" means a condition that applies to the actual construction or physical site
of a residential project (as opposed to standards for entitlement processing or fees) pursuant to
any ordinance, general plan element, specific plan, or other local condition, law, policy,
resolution or regulation.
"First approval" means the first of the following approvals to occur with respect to a residential
project: building permit, planned development permit, tentative parcel map, tentative subdivision
map, conditional use permit, site and architectural review permit, or other discretionary city land
use approval.
"Household income" means the combined adjusted gross income for all adult persons living in a
living unit as calculated for the purpose of the Section 8 Program under the United States
Housing Act of 1937, as amended, or its successor.
"Incentives and concessions" means regulatory concessions as listed in Sections 21.20.050 and
21.20.110.
"Inclusionary unit" means ~ ~. a t~-rt~~~l-unit which is required under Chapter
21.24 to be ret}t..,a ~~* ~~~{-~~~'~•'~'° -~~t-s-or-sold at an affordable ownership cost to specified
households, or which the applicant has elected to rent at affordable rents pursuant to Campbell
Municipal Code section 21.24.070.A .
"Living unit" means one or more rooms designed, occupied, or intended for occupancy as
separate living quarters with cooking, sleeping and bathroom facilities.
Pg 13 of 26
"Lower-income household" means a household whose household income does not exceed the
lower income limits applicable to Santa Clara County, as published and periodically updated by
the California Department of Housing and Community Development pursuant to Section
50079.5 of the California Health and Safety Code.
"Market rate unit"' means a living unit, which is not a target unit or an inclusionary unit.
"Maximum residential density" means the maximum number of living units permitted by the
zoning ordinance on the date an application for a residential project is deemed complete. This
definition is used to calculate a density bonus pursuant to this chapter.
"Minor modification" means a modification that is technical in nature, as opposed to substantive
or material.
"Moderate-income household" means a household whose household income does not exceed the
moderate income limits applicable to Santa Clara County, as published and periodically updated
by the California Department of Housing and Community Development pursuant to Section
50093 of the California Health and Safety Code.
"Qualifying resident" means a senior citizen or other person eligible to reside in a senior housing
project.
"Residential project" means any parcel map, subdivision map, conditional use permit, site and
architectural review permit, building permit, or other city approval, which authorizes the
construction of five or more living units.
"Senior housing project" means a senior citizen residential development of thirty-five living units
or more as defined in California Civil Code Section 51.3, or a mobilehome park that limits
residency based on age requirements for older persons pursuant to California Civil Code Section
798.76 or 799.5.
"Target units" means living units that will be restricted for sale or rent to qualifying residents or
will be restricted for sale or rent to, and affordable to, very low-, lower- or moderate-income
households thereby qualifying a residential project for a density bonus under this chapter.
Inclusionary units may not be target units unless they are offered at a lower income category as
explained in Section 21.20.100(6).
"Very low-income household" means a household whose household income does not exceed the
very low income limits applicable to Santa Clara County, as published and periodically updated
by the State Department of Housing and Community Development pursuant to Section 50105 of
the California Health and Safety Code.
(Ord. 2102 § 1(part), 2008).
21.20.030 -Eligibility for density bonuses.
A residential project is eligible for a density bonus if it:
1. Creates at least five additional living units, not including any density bonus units;
2. Includes a request for a density bonus as part of an application for the first approval of
a residential project; and
Pg 14 of 26
3. Meets the criteria for a density bonus established in Sections 21.20.030, 21.20.040,
21.20.060, 21.20.070 or 21.20.080
(Ord. 2102 § 1(part), 2008).
21.20.040 -Density bonuses for affordable and senior housing.
1. Very Low- and Lower-Income Housing and Senior Housing. A residential project is
eligible for a twenty percent density bonus if the applicant seeks a density bonus and agrees to
provide one of the following:
a. Ten percent of the total living units as target units affordable to lower-income
households;
b. Five percent of the total living units as target units affordable to very low-income
households; or
c. A senior housing project.
2. Moderate-Income Housing. A residential project is eligible for a five percent density bonus
if it meets all of the following criteria:
a. The applicant seeks a density bonus and agrees to provide at least ten percent of the
total living units as target units affordable to moderate-income households;
b. The residential project is a common interest development as defined by Section 1351
of the California Civil Code; and
c. All of the living units in the residential project are offered to the public for purchase.
3. Additional Density Bonus. The density bonus for which the residential project is eligible
shall increase if the percentage of target units affordable to very low-, lower-, and moderate-
income households exceeds the base percentage established in subsections (1) and (2) above, as
follows:
a. Very I,ow-Income Units. For each one percent increase above five percent in the
percentage of target units affordable to very low-income households, the density bonus
shall be increased by two and one-half percent up to a maximum of thirty-five percent.
b. Lower-Income Units. For each one percent increase above ten percent in the
percentage of target units affordable to lower-income households, the density bonus shall be
increased by one and one-half percent up to a maximum of thirty-five percent.
c. Moderate-Income Ownership Units. For each one percent increase above ten percent
of the percentage of target units reserved for sale at an ownership cost affordable to
moderate-income households, the density bonus shall be increased by one percent up to a
maximum of thirty-five percent.
(Ord. 2102 § 1(part), 2008).
Pg 15 of 26
21.20.050 -Incentives and concessions for affordable housing.
An applicant for a density bonus may seek incentives and concessions as follows:
1. One incentive or concession for residential projects where, based on affordable rents
or ownership costs, at least ten percent of the total units are target units affordable to lower-
income households, at least five percent of the total units are target units affordable to very
low-income households, or at least ten percent of the total units are target units affordable
to moderate-income households at affordable ownership costs;
2. Two incentives or concessions for residential projects where at least twenty percent of
the total units are target units affordable to lower-income households based on affordable
rents or ownership costs, at least ten percent of the total units are target units affordable to
very low income, or at least twenty percent of the total units are target units affordable to
moderate-income households at affordable ownership costs;
3. Three incentives or concessions for residential projects where at least thirty percent of
the total units are target units affordable to lower-income households based on affordable
rents or ownership costs, at least fifteen percent of the total units are target units affordable
to very low-income households, or at least thirty percent of the total- units are target units
affordable to moderate-income households at affordable ownership costs.
(Ord. 2102 § 1(part), 2008).
21.20.060 -Density bonus for land dedication.
A residential project may be eligible for a density bonus when an applicant for a residential
project chooses to dedicate land to the city for the construction of very low-income housing as
specified in California Government Code Section 65915(h).
(Ord. 2102 § 1(part), 2008).
21.20.070 -Density bonus or incentive for childcare facilities.
A residential project that is eligible for a density bonus and includes a childcare facility that will
be located on the premises of, as part of, or adjacent to the residential project, maybe eligible for
an additional density bonus or an additional concession or incentive that contributes significantly
to the economic feasibility of the construction of the childcare facility as specified in
Government Code Section 65915(1).
(Ord. 2102 § 1(part), 2008).
21.20.080 -Density bonus for condominium conversions.
A residential project for a conversion of existing rental apartments to condominiums may be
eligible for a density bonus or other incentives of equivalent financial value as specified in
Government Code Section 65915.5.
(Ord. 2102 § 1(part), 2008).
Pg 16 of 26
21.20.090 -Summary tables.
The following tables summarize the available density bonuses, incentives, and concessions.
Density Bonus Summary
Types of
Affordable
Units
Bonus Additional Bonus for % Target Units
Providing Minimum %
Granted Each 1 % Increase Required for Maximum
Eligibility fora °
over the Minimum l0 °
35 /o Bonus
Densit Bonus
A density bonus maybe selected from only one category, except that bonuses for land donation
may be combined with others, up to a maximum of 35%, and an additional sq. ft. bonus maybe
granted for a childcare facility. As provided in Section 21.20.100(5), target units provided must
be in addition to, or provided to a lower income category than, those required by the city's
inclusiona housin re uirements.
Very low 5% 20% 2.5% 11
income
Lower income 10% 20% 1.5% 20%
Moderate 10% 5% 1% 40%
income
(ownership
units onl )
Senior housing 100% senior 20% - -
ro'ect
Land donation 10% of 15% 1 % 30% of market-rate
for very low- market-rate units
income units
housin
Condominium 33% 25% - -
conversion -
moderate
income
Condominium 15% 25% - -
conversion -
lower income
Childcare - Sq. ft. in - -
facility childcare
facilit ~A~
Notes:
(A) Or an incentive of equal value, at the city's option.
Incentives and Concessions Summary
Target Units or Category % of Target Units
Pursuant to State Density
Bonus
Ve Low Income 5% 10% 15%
Lower Income 10% 20% 30%
Pg 17 of 26
Moderate Income 10% 20% 30%
(ownershi units onl )
Maximum 1 2 3
Incentive(s)/Concession(s)
A) B C D)
Notes:
(A) A concession or incentive maybe requested only if an application is also made for a density bonus.
(B) Concessions or~ incentives maybe selected from only one category (very low, lower, or moderate).
(C) No concessions or incentives are available for land donation.
(D) Condominium conversions and childcare facilities may have one concession or a density bonus at the
city's option, but not both.
(Ord. 2102 § 1(part), 2008).
21.20.100 -Calculation of density bonus.
1. When calculating the number of permitted density bonus units, any calculations resulting in
fractional units shall be rounded up to the next larger whole number.
2. The density bonus units shall not be included in the "total units" when determining the number of
target units required to qualify a residential project for a density bonus pursuant to Section 21.20.040(1)
or (2). When calculating the required number of target units, any calculations resulting in fractional units
shall be rounded up to the next larger whole number.
3. The applicant. may request a lesser density bonus than the project is entitled to, but no reduction may
be permitted in the number of target units or land dedication required to qualify a residential project for a
density bonus. Regardless of the number of target units or size of land dedication, no residential project
may be entitled to a total density bonus of more than thirty-five percent.
4. Each residential project is entitled to only one density bonus, which may be selected by the
applicant based on the percentage of either very low-income units, lower-income units, or moderate-
income ownership units, or the project's status as a senior housing project. Density bonuses from more
than one category may not be combined, except that bonuses for land dedication pursuant to Section
21.20.060 may be combined with bonuses granted pursuant to Section 21.20.040, up to a maximum of
thirty-five percent, and an additional square footage bonus for childcare facilities may be granted as
described in Section 21.20.070
5. Land dedications that qualify a project for a density bonus do not fulfill the inclusionary housing
requirements set forth in Chapter 21.24
6. Inclusionary units will only be counted as target units qualifying a prof ect for a density bonus, or
incentives and concessions, if the inclusionary units are made available at a lower affordable rent income
category or lower affordable ownership cost income category than mandated by the inclusionary
requirements set forth in Chapter 21.24. Inclusionary units that are counted as target units shall remain
affordable for the length of time required in Chapter 21.24, which is fifty-five years for rental units and
forty-five years for owner-occupied units.
Example: An applicant proposes to develop a one hundred-unit residential rt~rtal-ownership project and
seeks a twenty percent density bonus by reserving five-ten percent of the living units, or ten living
units, for nary-low-income households.
Pg 18 of 26
The inclusionary requirements in Chapter 21.24 require that fifteen percent of living units in a for-sale
residential ownership project be reserved to lower-income and moderate-income households.~~ercent
"reed-~r~--1~-i~ ,,~
.. • : " .Thus, in this one hundred-
unit residential project, the applicant may be required to reserve ten of the living units for moderate-
income households and five of the living units for lower-income households, as deternuned by an
inclusionary housing agreement. ~ ` ~ ~ - •~ • ~~ ~ • ~ `
~~~°~.`°'~^'a:.,.,a "'~ .~. Because the required inclusionary units do
not count as target units qualifying a project for a density bonus unless the inclusionary units are reserved
for a lower income category than required under Chapter 21.24, the income unit break down for this one
hundred-unit project would be as follows:
Inclusonary
Units Target Units DB Units Remaining
Units Total
~
~-'
-
-mo ~45
5€i 10~
~}
45 x-1-15
f
r
y
w
Lower
income: (
years) (
~
years)
L,ewer
Moderate 1091345 years) 9 10
income:
Market
rate: 20 X375 100
Total units 120
However, if the applicant reserves any of the required lower-income inclusionary units for very low-
income households and/or anv of the reaired moderate-income inclusionary units for lower-income
households, then these units will qualify as target units qualifying the project for a density bonus. If five
of the required lower-income inclusionary units are reserved for very low-income units and five of the
required moderate-income inclusionary units are reserved for lower-income units, then those -f=~ten units
would be considered target units qualifying the project for a density bonus. In this scenario, the income
unit break down would be as follows:
Inclusionary
.Units ~ Target/
Inclusiona Units DB Units Remaining
Units Total
Very low
income: (~-~~r~ 5 (3-545 years) 5-1-1-
Lower
income: ''-r-~-~ X45 years) 54
Moderate 5 (45 ears 5
Income
Market
rate: 20 85 105
Total units 120
(Ord. 2102 § 1(part), 2008).
Pg 19 of 26
21.20.110 -Standards for incentives and concessions; waiver or modification of development
standards.
1. Concessions and incentives may be approved by the planning commission, unless the residential
project or concessions otherwise require approval by the City Council. The applicant shall provide a pro
forma demonstrating to the city that the requested concession or incentive results in identifiable,
financially sufficient, and actual cost reductions to the project pursuant to California Government Code
Section 65915(1)(1). For purposes of this chapter, as defined in Government Code Section 65915(1),
concessions and incentives means any of the following:
a. A reduction in site development standards or a modification of zoning code requirements that
exceed the minimum building standards approved by the California 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 that results in identifiable,
financially sufficient and actual cost reductions.
b. Approval of mixed use zoning in conjunction with the residential project if commercial,
office, industrial, or other land uses will reduce the cost of the residential project and if the
commercial, office, industrial, or other land uses are compatible with the residential project and the
existing or planned development in the area where the proposed residential project will be located.
c. Other regulatory incentives or concessions proposed by the developer or the city that result in
identifiable, financially sufficient and actual cost reductions.
2. Waiver or Modification. Applicants may also seek a waiver or modification of development
standards that will have the effect of precluding the construction of a residential project meeting the
criteria of Sections 21.20.030 and 21.20.040(1) or (2) at the densities or with the incentives or
concessions permitted by this section. The applicant shall show: (1) that the development standards will
preclude construction, and (2) the waiver or modification is necessary to make the residential project
economically feasible based upon appropriate fmancial analysis and documentation as specified in
Section 21.20.130
3. Nothing in this section requires the city to provide direct financial incentives for the residential
project, including, but not limited to, the provision of publicly owned land or waiver of fees or dedication
requirements.
4. For purposes of this chapter, concessions and incentives include reductions in site development
standards or modifications of zoning code, and other incentives or concessions defined in Government
Code Section 659].5(1) that result in identifiable, financially sufficient and actual cost reductions. The
approved set of concessions includes the following:
a. Reduction in required on-site parking as described in CMC Section 21.20.120(4);
b. Expedited processing pursuant to a mutually agreed upon schedule (with appropriated
indemnification language);
c. Deferrals of the collection of impact fees on market rate units until issuance of a certificate of
occupancy.
(Ord. 2102 § 1(part), 2008).
21.20.120 -Standards for density bonus residential developments.
Target units qualifying a residential project for a density bonus shall remain affordable as follows:
Pg 20 of 26
a. Rental target units shall remain affordable to the designated income group for a minimum of
thirty years or for a longer period of time if required by any construction or mortgage financing
assistance program, mortgage insurance program, or rental subsidy program applicable to the living
units.--car i€
b. Owner-occupied target units shall remain affordable for forty-five years.
2. All target units shall be reasonably dispersed throughout the residential project and shall be
comparable to the design of the market rate units in terms of distribution of model types, number of
bedrooms, appearance, materials and finished quality of the market rate units in the development. There
shall not be significant identifiable differences between target and market rate units visible from the
exterior, and the size and design of the target units shall be reasonably consistent with the market-rate
units in the development. Target units shall have the same access to project amenities and recreational
facilities as market rate units.
3. All building permits for target units qualifying a residential project for a density bonus shall be
issued concurrently with, or prior to, issuance of building permits for the market rate units, and the target
units shall be constructed concurrently with, or prior to, construction of the market rate units. Occupancy
permits and final inspections for target units qualifying a residential project for a density bonus shall be
approved concurrently with, or prior to, approval of occupancy permits and final inspections for the
market rate units. 'Che time requirements set forth in this subsection for issuance of building permits for
market rate units and for final inspections for occupancy for market rate units may be modified to
accommodate phasing schedules, model variations, or other factors in a residential project, if the city
determines this will provide greater public benefit and a detailed schedule for construction or occupancy
of the target units is included in the affordable housing plan, as described in Section 21.20.130
4. Upon the request of the developer, the city shall not require off-street parking for a residential
project meeting the criteria of Sections 21.20.030 and 21.20.040(1) or (2) that exceeds the following:
Studio to one-bedroom units: one on-site parking space;
b. Two to three-bedroom units: two on-site parking spaces;
c. Four and more bedroom units: two and one-half parking spaces.
Guest parking and handicapped parking shall be included within the maximum number of
spaces that may be required. If the total number of parking spaces required for a residential
project is other than a whole number, the number shall be rounded up to the next whole
number. For purposes of this section, a residential project may provide on-site parking through
tandem parking or uncovered parking, but not through on-street parking.
(Ord. 2102 § 1(part), 2008).
21.20.130 -Affordable housing plan submittal; requirements for application for density bonus and
other incentives.
1. An application for a density bonus, incentive, concession, waiver, modification, or revised parking
standard pursuant to this chapter shall be submitted as part of the first approval of the residential project.
It shall be included in an affordable housing plan and processed concurrently with all other applications
required for the residential project.
2. Upon submittal, the community development director shall determine if the affordable housing plan
is complete and conforms to the provisions of this chapter. No application for a first approval for a
residential project requesting a density bonus, incentives, concessions, or waivers may be deemed
Pg 21 of 26
complete unless an affordable housing plan is submitted conforming to the provisions of this section.
3. The affordable housing plan shall include the following information:
a. A description of any requested density bonuses, incentives, concessions, waivers or
modifications of development standards or modified parking standards;
b. Identification of the base project without the density bonus, number and location of all target
units qualifying the project for a density bonus, level of affordability of the target units, and
identification of the bonus units;
c. The preferences given in selecting occupants shall be set forth;
d. For all incentives and concessions except those listed in Section 21.20.110(2), a pro forma
demonstrating that the requested incentives and concessions result in identifiable, financially
sufficient and actual cost reductions;
e. For waivers or modifications of development standards: (a) a pro forma demonstrating that the
waiver or modification is necessary to make the residential project economically feasible based
upon appropriate financial analysis and documentation; and (b) evidence that the development
standards for which a waiver is requested will have the effect of precluding the construction of the
residential project at the densities or with the incentives or concessions permitted by this chapter;
f. The cost of reviewing any required pro forma data submitted in support of a request for a
concession, incentive, waiver or modification, including, but not limited to, the cost to the city of
hiring a consultant to review the pro forma, shall be borne by the applicant. The pro forma shall also
include: (a) the actual cost reduction achieved through the incentive, concession, waiver, or
modification; and (b) evidence that the cost reduction allows the developer to provide affordable
rents or affordable sales prices;
g. If the applicant is proposing a modification of the requirement that the target units be
constructed concurrently with the market rate units, the affordable housing plan shall describe the
proposed phasing at the same level of detail as required in the application for the residential project,
specify the security to be provided to the city to ensure that the target units will be constructed, and
explain how the proposed phasing would provide greater public benefit than providing the target
units concurrently with the market rate units;
h. If a density bonus or concession is requested for a senior housing project, the application shall
provide that units in the residential project shall be occupied by qualified residents;
i. If a density bonus or concession is requested for a land donation, the application shall show
the location of the land to be dedicated and provide evidence that each of the findings in
Government Code Section 65915(h) can be made;
j. If a density bonus or concession is requested for a childcare facility, the application shall show
the location and square footage of the childcare facility and provide evidence that the findings
included in Government Code Section 65915(1) can be made;
k. If a mixed use building or development is proposed, the application shall provide evidence
that the findings included in Section 21.20.110(4)(g) can be made;
1. For residential projects subject to the inclusionary housing requirements set forth in Chapter
21.24, the affordable housing plan shall also incorporate the requirements of Section 21.24.060(A),
and only one affordable housing plan need be submitted.
Pg 22 of 26
4. Upon submittal, the community development director shall determine if the affordable housing plan
submitted in support of a request for a density bonus, incentive, concession, waiver, modification, or
revised parking standard is complete and conforms to the provisions of this chapter and Chapter 21.24.
No application for a first approval for a residential project requesting a density bonus, incentives,
concessions, or waivers may be deemed complete unless an affordable housing plan is submitted
conforming to the provisions of this chapter.
(Ord. 2102 § 1(part), 2008).
21.20.140 -City review of application for density bonuses and other incentives.
1. An application for a density bonus, incentive, concession, waiver, modification, or revised parking
standard pursuant to this chapter shall be reviewed as part of the first approval of the residential project by
the approval body with authority to approve the residential project, unless additional review by the
planning commission or City Council is required by Chapter 21.62. Any decision regarding a density
bonus, incentive, concession, waiver, modification, or revised parking standard may be appealed as part
of an appeal of the residential project as provided in Chapter 21.62. In accordance with state law, neither
the granting of a concession or incentive, nor the granting of a density bonus, shall be interpreted, in and
of itself, to require a general plan amendment, zoning change or other discretionary approval.
2. Before approving an application for a density bonus, incentive, concession, waiver, or modification,
the approval body shall make the following findings:
a. The residential project is eligible for a density bonus and any concessions, incentives, waivers,
modifications, or reduced parking standards requested; conforms to all standards for affordability
included in this chapter; and includes a financing mechanism for all implementation and monitoring
costs;
b. Any requested incentive or concession will result in identifiable, financially sufficient, and
actual cost reductions based upon appropriate financial analysis and documentation if required by
Section 21.20.110
c. If the density bonus is based all or in part on dedication of land, the approval body has made
the findings included in Government Code Section 65915(h);
d. If the density bonus, incentive, or concession is based all or in part on the inclusion of a
childcare facility, the approval body has made the finding included in Government Code Section
65915(1);
e. If the incentive or concession includes mixed use buildings or developments, the approval
body has made the finding included in Section 21.20.110(4)(g);
£ If a waiver or modification is requested, the applicant has shown that the waiver or
modification is necessary to make the housing units economically feasible by providing appropriate
financial analysis and documentation as described in Section 21.20.110(5), and that the
development standards will have the effect of precluding the construction of the residential project
at the densities or with the incentives or concessions permitted by this section.
3. The approval body may deny a request for an incentive or concession for which the findings set
forth in Section 21.20.140(2) can be made only if it makes a written finding, based upon substantial
evidence, of either of the following:
a. The incentive or concession is not required to provide for affordable rents or affordable
ownership costs; or
Pg 23 of 26
b. The incentive or concession would have a specific adverse impact upon public health or
safety, or the physical environment, or on any real property that is listed in the California Register
of Historic Resources, and there is no feasible method to satisfactorily mitigate or avoid the specific
adverse impact without rendering the development unaffordable to lower-, very low- and moderate-
income households. For the purpose of this subsection, "specific adverse impact" means a
significant, quantifiable, direct, and unavoidable impact, based on objective, identified, written
public health or safety standards, policies, or conditions, as they existed on the date that the
application was deemed complete.
4. The approval body may deny a requested waiver or modification for which the findings set forth in
Section 21.20.140(2) can be made only if it makes a written finding, based upon substantial evidence, of
either of the following:
a. The madification would have a specific adverse impact upon health, safety, or the physical
environment, and there is no feasible method to satisfactorily mitigate or avoid the specific adverse
impact without rendering the development unaffordable to lower-, very low- and moderate-income
households. For the purpose of this subsection, "specific adverse impact" means a significant,
quantifiable, direct, and unavoidable impact, based on objective, identified, written public health or
safety standards, policies, or conditions as they existed on the date that the application was deemed
complete; or
b. The madification would have an adverse impact on any real property that is listed in the
California Register of Historic Resources.
5. The approval body may deny a density bonus or concession that is based on the provision of
childcare facilities and for which the findings set forth in Section 21.20.140(2) can be made only if it
makes a written finding, based on substantial evidence, that the city already has adequate childcare
facilities.
6. A request for a minor modification of an approved affordable housing plan may be granted the
community development director or designee if the modification is substantially in compliance with the
original affordable housing plan and conditions of approval. A minor modification is technical in nature,
as opposed to substantive or material. Substantive or material changes to the affordable housing plan shall
be processed in the same manner as the original plan.
(Ord. 2102 § 1(part), 2008).
21.20.150 -Developer affordable housing agreement.
A. Developers requesting a density bonus, incentive, concession, waiver, modification, or revised
parking standard granted pursuant to this chapter, shall agree to enter into a developer affordable housing
agreement with the city. A developer affordable housing agreement shall be made a condition of the
discretionary planning permits for all residential projects pursuant to this chapter and shall be recorded as
a restriction on any parcels on which the target units will be constructed. When the inclusionary
requirements of Chapter 21.24 apply, one affordable housing agreement will be recorded incorporating
the requirements of both chapters.
B. The developer affordable housing agreement shall be recorded prior to final or parcel map approval,
or, where the residential project does not include a map, prior to issuance of a building permit for any
structure in the residential projects. The developer affordable housing agreement shall run with the land
and bind all future owners and successors in interest.
C. The developer affordable housing agreement shall be in a form provided by the city and shall
include, without limitation, the following:
Pg 24 of 26
1. The total number of units approved for the residential project, the number, location, and level
of affordability of the target units and the inclusionary units;
2. Standards for determining affordable rent or affordable ownership cost for the target units and
any inclusionary units;
3. The location, unit size in square feet, and number of bedrooms of target units and any
inclusionary units;
4. Provisions to ensure initial and continuing affordability in accordance with the requirements of
this chapter and Chapter 21.24, including the execution and recordation of subsequent agreements
ensuring continued affordability pursuant to Sections 21.20.120 and 21.24.060
5. A schedule for completion and occupancy of target units and inclusionary units in relation to
construction of market rate units;
6. A description of any incentives, concessions, waivers, or reductions being provided by the
city;
7. A description of remedies for breach of the agreement by either party. The city may identify
tenants or qualified purchasers as third party beneficiaries under the agreement;
8. Procedures for qualifying tenants and prospective purchasers of target units, including
preferences; '
9. Provisions requiring maintenance of records to demonstrate compliance with this chapter;
10. Other provisions to ensure implementation and compliance with this chapter and Chapter
21.24, if applicable.
D. In the case of senior citizen housing developments, the developer affordable housing agreement
shall provide that units in the residential development shall be occupied by qualified residents.
E. Developer affordable housing agreements for land dedication, childcare facilities, and condominium
conversion shall ensure continued compliance with all conditions included in Sections 21.20.060,
21.20.070 and 21.20.080 respectively.
(Ord. 2102 § 1(part:), 2008).
21.20.160 -Continued affordability and initial occupancy.
A. Owner-Occupied Target Units. A resale restriction, covenant, deed of trust and/or other documents
acceptable to the community development director or the director's designee, shall be recorded against
each affordable for-sale unit. These documents shall, in the case of target units, which are initially sold,
be for a term of forty-five years and shall be renewed at each change of title for a period of forty-five
years. The resale restriction, or other documents authorized by this subsection, and any change in the
form of any such documents which materially alters any policy in the documents, shall be approved by
the community development director or his or her designee prior to being executed with respect to any
residential project.
B. Rental Target Units. A regulatory agreement, covenant, deed of trust, and/or other documents
acceptable to the community development director or the director's designee, shall be recorded against
each residential project containing affordable rental units for a minimum term of thirty years or more. A
longer period of time may be specified if required by any construction or mortgage financing assistance
program, mortgage insurance program, or rental subsidy program applicable to the residential project.
Pg 25 of 26
C. Eligibility Requirements. No household shall be permitted to begin occupancy of a target unit unless
the city or its designee has approved the household's eligibility. If the city or its designee maintains a list
of, or otherwise identifies, eligible households, initial and subsequent occupants of target units shall be
selected first from the list of identified households, to the maximum extent possible, in accordance with
rules approved by the community development director or his or her designee.
D. Priority for Rental or Purchase of Units. Preference in the rental or purchase of target units shall be
given, first (for up to ten percent of all target units subject to this chapter) to income eligible employees of
the city of Campbell, second to income eligible existing Campbell residents, and third to income eligible
persons employed within the city limits of the city of Campbell.
(Ord. 2102 § 1(part), 2008).
21.20.180 -Implementation and enforcement.
A. The City Council may adopt guidelines, by resolution, to assist in the implementation of all aspects
of this chapter.
B. No permit, license, subdivision approval or map, or other approval or entitlement for a residential
project shall be issued, including without limitation a final inspection for occupancy or certificate of
occupancy, until all requirements applicable to the residential project at such time pursuant to this chapter
have been satisfied.
C. The city attorney shall be authorized to enforce the provisions of this chapter and all affordable
housing agreements, regulatory agreements, resale controls, deeds of trust, or similar documents placed
on target units, by civil action and any other proceeding or method permitted by law.
D. Failure of any official or agency to fulfill the requirements of this chapter shall not excuse any
applicant or owner from the requirements of this chapter.
E. The remedies provided for herein shall be cumulative and not exclusive and shall not preclude the
city from any other remedy or relief to which it otherwise would be entitled under law or equity.
(Ord. 2102 § 1(part), 2008).
Pg 26 of 26