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PC Res 2713RESOLUTION NO. 2713 PLANNING COMMISSION _BEING A RESOLUTION OF THE PLANNING COMMISSION OF TI-IE CT OF CAMPBELL AI~DPTING 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 Municipal 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. o 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 Reso,.,tion 2713 TA 90433 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 ORDINANCE NO. BEING AN ORDINANCE OF THE CITY OF CAMPBELL APODIXFING A TEXT AMENDMENT TO THE MUNICIPAL CODE OF THE CITY OF CAMPBELL, CAI.rl::ORNIA ADDING CHAPTER 21.62. C1TY-INrFIATED 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: 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 Council 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 Pal~e -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 sefforth 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: Councilmembers: Councilmembers: Councilmembers: APPROVED: Michael F. Kotowski, Mayor ATTEST: Barbara Olsasky, City Clerk Sections: Chapter 21.62 DENSITY BONUS 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. Co "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 Ordinance Pase 2 November 15, 1990 Jo Ko L. "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. Mo Oo "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~sance Page 3 November 15, 1990 21.62.30 Applicability Ao All housing developments greater than 5 units (excluding density bonus units) axe 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: ^ 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. 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 Ordinance Pa~e 4 November 15, 1990 21.62.50 Ao Bo C. Fo 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. 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 additional incentives. The City may retain a consultant to review the Draft Density Bonus Ordinance Pa~e 5 November 15, 1990 financial report. The cost of the consultant shall be born by the developer with the following exceptions: o 21.62.60 Ao Bo 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 Projects. All BMR units shall be occupied by the household type specified in the written agreement required under section 21.62.50.B. 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 representative of the City to inspect the records pertaining the BMR units and occupants of the said units. Draft Density Bonus Ordinance Pa~e 6 November 15, 1990 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. The owner shall provide to the City any additional information required by the City to insure the long-term affordability of the BIviR units by eligible households. 21.62.70 Requirements for Owner-Occupied Housing 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. Be 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 incapadty. 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. De 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 Ordinance Page 7 November 15, 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. 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. BEING A SUMMARY ORDINANCE OF THE CITY OF CAMPBELL APODPTING A TEXT AMENDMENT TO THE MUNICIPAL CODE OF THE CITY OF CAMPBELL, CAI./FORNIA ADDING CHAPTER 21.62. CITY-INITIATED FILE NO. TA 90- 03. SECTION ONE: That Chapter 21.62 be added to the Campbell Municipal Code as summarized below: A density bonus of 25%, and an additional incentive must be granted to developers agreeing to construct a specified percentage of housing for lower income households, very low-income households or senior citizens. The Below Market Rate units must remain reserved for the targeted income group for 30 years if both a density bonus and an additional incentive is granted, 10 years if only the density bonus is granted. The owners of Below Market Rate Units must 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. Eligible Campbell residents will have first preference for the Below Market Rate units; second preference will be given to eligible persons employed within the City Limits of Campbell. 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: Councilmembers: Councilmembers: Councilmembers: APPROVED: ATTEST: Barbara Olsasky, City Clerk Michael F. Kotowski, Mayor