HomeMy WebLinkAbout4.0_Density Bonus Code and LCP Amendments_PA2020-032CITY OF NEWPORT BEACH
PLANNING COMMISSION STAFF REPORT
July 21, 2022
Agenda Item No. 4
SUBJECT: Density Bonus Code and LCP Amendments (PA2020-032)
▪Code Amendment No. CA2020-004
▪Local Coastal Program Amendment No. LC2020-004
SITE LOCATION: Citywide
APPLICANT: City of Newport Beach
PLANNER: Jaime Murillo, AICP, Principal Planner
949-644-3209, jmurillo@newportbeachca.gov
PROJECT SUMMARY
Amendments to Title 20 (Planning and Zoning) and Title 21 (Local Coastal Program
Implementation Plan) of the Newport Beach Municipal Code (NBMC) updating standards
and establishing an approval process for considering density bonuses with housing
development projects. These amendments are required to ensure the City’s regulations are
in compliance with California Government Code Section 65915, et. Seq (Density Bonuses
and Other Incentives). A housing development project that includes a minimum
percentage of affordable units is eligible for additional units above the otherwise allowed
City-established maximum density and it is also eligible for reduced parking requirements,
incentives/concessions, and waivers of development standards.
This item was continued from the July 7, 2022, meeting.
RECOMMENDATION
1)Conduct a public hearing;
2)Find this project exempt from the California Environmental Quality Act (CEQA)
pursuant to Section 15061(b)(3), the general rule that CEQA applies only to projects,
which have the potential for causing a significant effect on the environment;
3)Adopt Resolution No. PC2022-018 recommending the City Council approve Zoning
Code Amendment No. CA2020-004 to amend Title 20 (Planning and Zoning) of the
Newport Beach Municipal Code pertaining density bonus to comply with State law
(Attachment No. PC 1); and
4)Adopt Resolution No. PC2022-019 recommending the City Council authorize
submittal of Local Coastal Plan Amendment No. LC2020-004 to the California
Coastal Commission to amend Title 21 (Local Coastal Program Implementation Plan)
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of the Newport Beach Municipal Code pertaining density bonus to comply with State
law (Attachment No. PC 2).
INTRODUCTION
Density Bonus Law Background
In response to a then affordable housing shortage, the State of California enacted the first
density bonus law in 1979 to encourage development of low- and moderate-income units.
Over time, the law was amended and expanded to recognize the need for households at
a wider range of income levels and with specialized needs (i.e. senior, childcare,
transitional foster youth, disabled veterans, homeless persons, and students). The
State’s density bonus law is codified as California Government Code § 65915 -65918
(Attachment No. PC 3).
The intent of density bonus law is to provide a package of incentives intended to help
make the development of affordable and special housing needs economically feasible.
To accomplish this goal, the law requires local agencies grant an increase to the
maximum allowable residential density allowing the developer to spread the cost of the
affordable units more broadly over the market-rate units. The law supports the
development of eligible projects at greater densities by granting development incentives
and/or concessions, granting waivers or reductions to applicable development standards,
and granting reduced parking ratios. When a density bonus is requested, the
development is required to construct a minimum percentage of affordable units that are
provided to a low- and moderate-income households for a term of 55 years.
With the exception of senior housing that does not require income limitations, the target
household income ranges include very low-income (household income does not exceed
50 percent of the area median income for Orange County), low-income (household income
does not exceed 80 percent of the area median income for Orange County), and moderate-
income (household income does not exceed 120 percent of the area median income for
Orange County). The term lower-income, includes both very low- and low-income
categories. For the Orange County area, the 2022 income limits are as follows:
COUNTY STANDARD NUMBER OF PERSONS IN FAMILY
1 2 3 4 5 6 7 8
Orange
County
Area
median:
$119,100
Very-low income
(50% of Area Median
Income) 47,450 54,200 61,000 67,750 73,200 78,600 84,050 89,450
Low-income
(80% of Area Median Income) 75,900 86,750 97,600 108,400 117,100 125,750 134,450 143,100
Moderate-Income
(120% of Area Median
Income) 100,050 114,300 128,600 142,900 154,350 165,750 177,200 188,650
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Government Code § 65915(a)(a) requires that the City adopt an ordinance that specifies
how the City will implement the State’s density bonus law. Government Code § 65918
clarifies the State’s requirements do apply to charter cities.
The City of Newport Beach’s local density bonus regulations are contained in NBMC
Chapter 20.32, which was last updated in 2010 and is grossly out-of-date with current
State density bonus law. In the past 12 years, the California State Legislature has enacted
18 bills that have amended various sections of law. As a result, the City’s regulations do
not include the correct density bonus percentages, do not include all eligible housing
types, do not include required replacement housing requirements, do not include required
development standard waiver provisions, and do not clearly set forth a review process to
consider density bonus applications. While the City’s ordinance has been out of date, all
more recent density bonus projects have been reviewed and approved consistent with
State laws. Again, the purpose of the proposed ordinance amendments is to update the
City’s codes making them consistent with the requirements of State law.
Initiation of Amendments
Zoning Code Section 20.66.020 (Initiation of Amendment) provides that a Title 20 code
amendment may be initiated by the City Council, with or without a recommendation from
the Planning Commission. City Council Policy K-1 (General Plan and Local Coastal
Program) provides that a City-sponsored amendment to the certified Local Coastal
Program (LCP) shall be initiated by the City Council. The subject amendments were
initiated by the City Council on April 14, 2020, under City Council Resolution No. 2020-
36 (Attachment No. PC 4).
DISCUSSION
Proposed Density Bonus Regulations
The intent of State’s density bonus law is not to just to provide more units, but to provide
a larger package of incentives to help make the development of affordable and senior
housing economically feasible. As explained in more detail below, the proposed
amendments would establish eligibility requirements for density bonuses, provide limits
on amount of bonus units above the otherwise allowed maximum density, establish
allowances for incentives/concessions, and clarify allowed development standard
waivers. Additionally, the proposed amendment would establish a process in which
density bonus applications are reviewed.
Eligibility
Housing development projects with five or more units with the specified minimum
affordable or senior units could qualify for a density bonus. Housing development would
need to meet one of the following categories:
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• Five percent of the units are for very low-income households.
• 10 percent of the units are for low-income households.
• 10 percent of the units that are ownership units are for moderate-income
households.
• 100 percent of the units are primarily for lower-income households (very low and
low), except that up to 20 percent of the units may be for moderate-income
households.
• 10 percent of the units are for transitional foster youth, disabled veterans, or
homeless persons provided at the same affordability as very low-income units.
• 20 percent of the units are for lower-income college students.
• A condominium conversion where either 33 percent of the converted units are for
low- or moderate-income households, or 15 percent of the converted units are for
very low- or extremely low-income households.
• A senior citizen housing development (min. 35 units) or a mobile home park that
restricts occupancy to seniors of age 55 years or older.
• The applicant for a housing development project donates at least one acre of land
that is fully entitled for a housing development project intended for very low-income
households.
Increase in Density (Bonus Units)
For housing development projects that set aside a certain percentage of the project’s
base units for either very low-, low- and moderate-income households, the applicant is
entitled a density bonus based on a sliding scale as noted in the table below. For example,
if zoning limits the maximum development limit for a site to 100 units (base units) and an
applicant agrees to set aside five units (5%) of those base units for very low-income
households, the applicant would then be entitled to an additional 20 market-rate units
(bonus units), for a total project size of 120 units.
Table 1-Allowable Density Bonus
Density Bonus Percentage
Percentage of Base
Units Very Low Income Low Income Moderate Income
5% 20% - -
6% 22.5% - -
7% 25% - -
8% 27.5% - -
9% 30% - -
10% 32.5% 20% 5%
11% 35% 21.5% 6%
12% 38.75% 23% 7%
13% 42.5% 24.5% 8%
14% 46.25% 26% 9%
15% 50% 27.5% 10%
16% 50% 29% 11%
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17% 50% 30.5% 12%
18% 50% 32% 13%
19% 50% 33.5% 14%
20% 50% 35% 15%
21% 50% 38.75% 16%
22% 50% 42.5% 17%
23% 50% 46.25% 18%
24% 50% 50% 19%
25% 50% 50% 20%
26% 50% 50% 21%
27% 50% 50% 22%
28% 50% 50% 23%
29% 50% 50% 24%
30% 50% 50% 25%
31% 50% 50% 26%
32% 50% 50% 27%
33% 50% 50% 28%
34% 50% 50% 29%
35% 50% 50% 30%
36% 50% 50% 31%
37% 50% 50% 32%
38% 50% 50% 33%
39% 50% 50% 34%
40% 50% 50% 35%
41% 50% 50% 38.75%
42% 50% 50% 42.5%
43% 50% 50% 46.25%
44% 50% 50% 50%
100%* 80% 80% 80%
*Qualifying projects that are located within ½ mile of a major transit stop are allowed unlimited density. At
this time, there is no qualifying bus stops in the City that meet the criteria of a major transit stop.
For specialized housing types, the following density bonus would be provided:
• Housing for transitional foster youth, disabled veterans, homeless persons, senior
citizens: 20 percent density bonus.
• Housing for lower-income college students: 35 percent density bonus.
• Qualifying condominium conversions: 25 percent density bonus to create
additional units on the project site or other incentive of equivalent financial value.
• Land donations: A sliding scale of between 15-35 percent density bonus based on
the percentage of base units proposed on the donated land.
Incentives/Concession
As part of their density bonus application, a housing developer could request up to four
incentives or concessions that would make development of the housing project
economically feasible. Allowable incentives or concessions include a reduction to a
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development standard, approval of mixed-use project in conjunction with the housing
development, or other regulatory relief that results in an identifiable and actual cost
reduction. Per State law, local jurisdictions must grant the requested incentive or
concession unless: 1) it does not result in identifiable and actual cost reductions: 2) it
would cause have specific adverse impact upon public health and safety that cannot be
mitigated: 3) it would harm a historical resource: or 4) would be contrary to law. The
burden of proof is placed on local jurisdictions that decline to grant a requested incentive
or concession. The only exception to the mandatory requirement to grant an incentive or
concession is that the City is not required to provide direct financial incentives, including
the provision of publicly owned land or the waiver of fees or dedication requirements;
however, the City may choose to grant such a request if is desired.
The number of incentives or concessions that the applicant may request is based on the
percentage of affordable units in the project:
Table 2- Allowable Incentives/Concessions
No. of Incentives or
Concessions
Very Low- Income Low-Income Moderate-Income
1 5% 10% 10%
2 10% 17% 20%
3 15% 24% 30%
4* 100% lower-income
(20% moderate-
income allowed)
100% lower-income
(20% moderate-
income allowed)
100% lower-income
(20% moderate-
income allowed)
*Qualifying projects that are located within ½ mile of a major transit stop are also eligible for a height
increase of up to 3 additional stories or 33 feet.
Development Standard Waivers
In addition to the incentives and concessions, an applicant could also request to waive or
reduce development standards that would physically prevent the project from being
constructed at the permitted densities and with the granted incentives/concessions.
Development standard waivers appear similar to incentives/concessions; however, the
key difference is there is a limit on the number of incentives/concessions that can be
granted, and they are based on economic feasibility of the project. Conversely, there is
no limit to the number of waivers that can be requested, and waivers are based on
development standards that would physically preclude or inhibit the housing project. For
example, a housing development may be eligible for a 50 percent density bonus, but in
order to fit the additional bonus units a developer may request to increase the size of the
allowable building envelope through reductions of minimum building setbacks or
increases in building heights above regulatory limits. The City is not required to grant a
waiver that would have specific adverse impact upon public health and safety that cannot
be mitigated, would harm historical property, or would be contrary to law. It is also
important to note that case law would not permit the City to redesign a project to otherwise
eliminate a development standard waive.
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Parking Reductions
Typically, the NBMC requires multi-unit dwelling projects with four or more units to provide
parking at a rate of 2.5 parking spaces per unit. However, housing development projects
that are eligible for a density bonus are automatically granted the following reduced
parking ratios in addition to any allowable incentives/concessions:
Table 3- Reduced Parking Ratios
Dwelling Unit Size Onsite Parking per Unit
Studio to 1 Bedroom 1 space
2 to 3 Bedrooms 1.5 spaces
4 or more Bedrooms 2.5 spaces
Projects within one-half mile of a major transit stop or that consist of 100 percent rental
units for very-low or low-income households could qualify for further reductions.
Additional Incentives for Housing with Child Care Facilities
For housing developments that are eligible for a density bonus and that also provide an
on-site childcare facility, the following additional incentives may also be provided:
•Residential floor area equal to or greater than the size of the childcare facility; or
•An incentive that contributes to the economic feasibility of the childcare facility.
The childcare facility must remain in operation for the minimum term of the affordable
housing units (e.g. 55 years) and the children that attend the facility shall reflect the same
proportion of household income (e.g., low-income or moderate-income) as the
percentage of eligible affordable housing units in the project.
Replacement Housing Requirements
To preserve existing affordable housing units, a density bonus, incentive, concession,
waiver or reduction, is not permitted if a development removes units that at any time in
the five-year period preceding the application were occupied by lower-income households
or subject to a form of rent control. Projects may overcome this restriction by replacing
affordable units with units of equivalent affordability, size and/or type.
Continued Availability of Units
Affordable and senior units would be required to maintain their affordability for a minimum
of 55 years. During the affordability term, ownership units would be permitted to be sold
at market-rate through an equity sharing agreement with the City to recapture any initial
subsidy and its proportionate share of appreciation. The recaptured subsidy and a portion
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of the appreciation of value would then be required to be reused by the City within five
years to promote additional home ownership.
Design and Distribution of Units
Affordable units would be required to be distributed throughout the housing development
and occupants provided access to all common amenities and entrances. Although the
affordable units could be smaller and have different interior finishes than the market-rate
units in the development, they would be required to have proportionately same bedroom
mix as the market-rate units and comparable in exterior design.
Approval Process
The proposed amendment would establish an approval process for the City to review
proposed density bonuses through an Affordable Housing Implementation Plan.
Applications would be considered concurrently with the other required entitlements for the
housing project. Notwithstanding this, any density bonus that proposes to waive or reduce
a development standard would require Planning Commission review and any density
bonus that proposes a financial incentive or fee waiver would require City Council review.
General Plan Consistency
The proposed amendment is consistent with Policy Action 4C of the recently adopted
2021-2029 General Plan Housing Element, which states, “The City will update its Density
Bonus Ordinance (Newport Beach Municipal Code Chapter 20.32) to be consistent with
State Law, as amended. Additionally, the City shall either grant a density bonus as
required by state law if requested, or provide other incentives of equivalent financial value
when a residential developer agrees to construct housing for persons and families of very
low, low, and moderate-income above mandated requirements. The City will continue to
implement provisions of Chapter 20.32, as amended (Density Bonus) of the Zoning Code
as housing projects are submitted to the City during the 6th Cycle. The City will further
encourage affordable housing and the potential use of density bonus statutes to
accommodate additional affordable units.”
Local Coastal Plan Implementation Plan Consistency
Government Code § 65915(m) specifies that density bonus law does not “supersede or
in any way alter or lessen the effect or application of the California Coastal Act.” This does
not mean that density bonus law is not applicable within the coastal zone. In practice, it
requires a balance where both the density bonus law and the Coastal Act are
implemented consistently together. Currently, Title 21 is silent with respect to density
bonuses. The proposed amendment would add a new chapter to Title 21 clearly
establishing the regulations for density bonus in the coastal zone. The proposed Title 21
amendment closely mirrors the proposed Title 20 revisions, with added clarification that
any requested density bonus or requested incentive, concession, waiver, modification, or
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modified parking standard shall comply with all applicable standards and use regulations
of the certified Local Coastal Program Implementation Plan. Staff recommends a few
exceptions where in no case shall the coastal resource protection development
regulations of Sections 21.28.040 (Bluff (B) Overlay District), 21.28.050 (Canyon (C)
Overlay District), 21.28.015(D)(Waterfront Development), 21.30.015(E)(2) (Development
in Shoreline Hazardous Areas) and 21.30.100 (Scenic and Visual Quality Protection), or
Chapters 21.30A (Public Access and Recreation) Chapter 21.30B (Habitat Protection) be
waived, reduced, or modified.
Any amendments to the LCP, including Title 21, must be reviewed and approved by the
City Council, with a recommendation from the Planning Commission, prior to submitting
the amendment request to the Coastal Commission. The Coastal Commission is the final
decision-making authority on amendments to the certified LCP; however, the City retains
the ability to reject an LCP amendment in its entirety if the Coastal Commission includes
suggested modifications.
Upon approval of the proposed LCP Amendment by the California Coastal Commission,
staff will return to the City Council with an ordinance formally adopting the Title 21
amendment related to density bonuses.
Pending Legislation
The State Legislature is considering several new housing related bills, including four new
bills related to density bonus. Staff will continue to monitor the progress of these bills. The
last day for the legislature to pass bills is August 31, 2022, and the last day for the
Governor to sign or veto bills is September 30, 2022. At this point, its staff’s
recommendation that the Planning Commission move forward with the comprehensive
amendments as proposed. Staff will present the amendments to the City Council for their
consideration in the Fall to ensure any necessary revisions resulting from adopted
legislation are incorporated.
Table 4- Pending Density Bonus Legislation
Bill Summary
AB2334
(Wicks)
Allows a housing development project to receive added height and unlimited
density if the project is in an urbanized very low vehicle travel area, at least 80%
of the units are restricted to lower income households, and no more than 20% are
for moderate-income households.
AB682
(Bloom)
Add shared housing buildings as a new housing type that is eligible for density
bonus benefits. Shared housing building is defined as a residential or mixed-use
structure with five or more shared units and one or more common kitchens and
dining areas designed for permanent residence of more than 30 days by its
tenants.
AB1551
(Santiago)
Requires a local jurisdiction to grant a density bonus (in the form of increased
commercial intensity, height, or reduced parking) for a commercial development if
the developer enters into an agreement to provide affordable housing by either
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building the units, donating land for an affordable housing project, or making cash
payment to affordable housing developer.
AB2063
(Berman)
Prohibits a jurisdiction from charging affordable housing impact fees on a housing
developments that include density bonus units.
Environmental Review
This action is exempt from environmental review under the California Environmental
Quality Act (CEQA) pursuant to Section 15061(b)(3), the general rule that CEQA applies
only to projects, which have the potential for causing a significant effect on the
environment. The amendment specifies how the City will comply with and implement
State density bonus law, and adoption is required pursuant to Government Code Section
65915. The bonuses, incentives, and waivers permitted by the ordinance are already
allowed pursuant to State density bonus law. The code amendment is further exempt from
CEQA pursuant to Section 15265(a)(1), which exempts local governments from the
requirements of CEQA in connection with the adoption of a Local Coastal Program.
Public Notice
Pursuant to Section 13515 of the California Code of Regulations, a review draft of the
LCP Amendment was made available, and a Notice of Availability was distributed on June
24, 2022, to all persons and agencies on the Notice of Availability mailing list.
In addition, notice of this amendment was published in the Daily Pilot as an eighth-page
advertisement, consistent with the provisions of the Municipal Code and State law. The
item also appeared on the agenda for this meeting, which was posted at City Hall and on
the City website.
Prepared by:
Submitted by:
ATTACHMENTS
PC 1 Draft Resolution for Code Amendment
PC 2 Draft Resolution for Local Coastal Program Amendment
PC 3 State Density Bonus Law (Government Code § 65915-65918)
PC 4 City Council Resolution No. 2020-36
PC 5 Redlines of Draft Code Revisions
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Attachment No. PC 1
Draft Resolution for Code Amendment
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RESOLUTION NO. PC2022-018
A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY
OF NEWPORT BEACH RECOMMENDING CITY COUNCIL
ADOPTION OF CODE AMENDMENT NO. CA2020-004
AMENDING CHAPTER 20.32 (DENSITY BONUS) OF THE
NEWPORT BEACH MUNICIPAL CODE RELATED TO DENSITY
BONUSES TO COMPLY WITH STATE LAW (PA2020-032)
THE PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH HEREBY FINDS AS
FOLLOWS:
SECTION 1. STATEMENT OF FACTS.
1. Chapter 20.32 (Density Bonus) of the Newport Beach Municipal Code (“NBMC”) sets
forth the City of Newport Beach’s (“City”) requirements for granting density bonuses in
compliance with California Government Code Section 65915 et seq. (“State Density
Bonus Law”).
2. Since Chapter 20.32 (Density Bonus) of the NBMC was last updated in 2010 pursuant
to Ordinance No. 2010-21, the California State Legislature has adopted 18 bills that
amend various sections of State Density Bonus Law. Therefore, revisions to Chapter
20.32 (Density Bonus) are necessary in order to ensure consistency with the State
Density Bonus Law.
3. Policy Action 4C of the 2021-2029 General Plan Housing Element states, “The City will
update its Density Bonus Ordinance (Newport Beach Municipal Code Chapter 20.32) to
be consistent with State Law, as amended. Additionally, the City shall either grant a
density bonus as required by state law if requested, or provide other incentives of
equivalent financial value when a residential developer agrees to construct housing for
persons and families of very low, low, and moderate-income above mandated
requirements. The City will continue to implement provisions of Chapter 20.32, as
amended (Density Bonus) of the Zoning Code as housing projects are submitted to the
City during the 6th Cycle. The City will further encourage affordable housing and the
potential use of density bonus statutes to accommodate additional affordable units.”
4. On April 14, 2020, the City Council adopted Resolution No. 2020-36 initiating a code
amendment to Title 20 (Planning and Zoning) related to density bonuses.
5. A public hearing was held on July 21, 2022, in the Council Chambers located at 100 Civic
Center Drive, Newport Beach, California. A notice of time, place and purpose of the public
hearing was given in accordance with the California Government Code Section 54950
et seq. (“Ralph M. Brown Act”) and Chapter 20.62 (Public Hearings) of the NBMC.
Evidence, both written and oral, was presented to, and considered by, the Planning
Commission at this public hearing.
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SECTION 2. CALIFORNIA ENVIRONMENTAL QUALITY ACT DETERMINATION.
Code Amendment No. CA2020-004 is exempt from environmental review under the California
Environmental Quality Act (“CEQA”) pursuant to Section 15061(b)(3) of the CEQA Guidelines,
California Code of Regulations, Title 14, Division 6, Chapter 3, the general rule that CEQA
applies only to projects, which have the potential for causing a significant effect on the
environment. The amendment specifies how the City will comply with and implement State
Density Bonus Law. The bonuses, incentives, and waivers permitted by the ordinance are
already allowed pursuant to State law.
SECTION 3. FINDINGS.
1. Code Amendment No. CA2020-004 is consistent with and implements California
Government Code Section 65915 et. seq.
2. Code Amendment No. CA2020-004 is consistent with Policy Action 4C and Housing Policy
2.1 of the 2021-2029 Housing Element in that it would bring the City’s density bonus
regulations into compliance with State Density Bonus Law and provide a method for the
City to review and approve density bonuses.
3. Local Coastal Program Amendment No. LC2020-004 is also underway to bring the City’s
density bonus regulations into compliance with State Density Bonus Law in the coastal zone.
4. The recitals provided in this resolution are true and correct and are incorporated into the
operative part of this resolution.
SECTION 4. DECISION.
NOW, THEREFORE, BE IT RESOLVED:
The Planning Commission of the City of Newport Beach hereby recommends approval of Code
Amendment No. CA2020-004 as set forth in Exhibit “A,” which is attached hereto and incorporated
herein by reference.
PASSED, APPROVED, AND ADOPTED THIS 21ST DAY OF JULY, 2022.
AYES:
NOES:
ABSTAIN:
ABSENT:
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BY:_________________________
Lauren Kleiman, Chair
BY:_________________________
Mark Rosene Secretary
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EXHIBIT “A”
Zoning Code Amendment No. CA2020-004
Section 1: Subsection C(1) of Section 20.12.020 (Rules of Interpretation) of Chapter 20.12
(Interpretation of Zoning Code Provisions) of Title 20 (Planning and Zoning) the NBMC is hereby
amended to read as follows:
C. Calculations.
Residential Density. Except for projects that include a density bonus in accordance
with Section 20.32.040(A), when the number of dwelling units allowed on a site is
calculated based on the minimum site area per dwelling unit, any fraction of a unit
shall be rounded down to the next lowest whole number. For example, where a
residential zoning district requires a minimum site area per dwelling unit of one
thousand five hundred (1,500) square feet; a site of ten thousand (10,000) square
feet would be allowed six dwelling units (10,000 sq. ft/1,500 sq. ft. per dwelling unit
= 6.66 dwelling units, which is rounded down to six (6) dwelling units.
Section 2: Chapter 20.32 (Density Bonus) of Title 20 (Planning and Zoning) the NBMC is
hereby deleted in its entirety and replaced with the following:
Chapter 20.32
Density Bonus
Sections:
20.32.010 Purpose.
20.32.020 Definitions.
20.32.030 Eligibility for Density Bonus and Incentives.
20.32.040 General Requirements.
20.32.050 Allowed Density Bonuses.
20.32.060 Parking Requirements in Density Bonus Projects.
20.32.070 Allowed Incentives or Concessions.
20.32.080 Waivers and Reductions of Development Standards.
20.32.090 Incentives for Housing with Child Care Facilities.
20.32.100 Condominium Conversions.
20.32.110 Design and Distribution of Affordable Units.
20.32.120 Replacement Units.
20.32.130 Continued Availability.
20.32.140 Occupancy and Resale of Ownership Units.
20.32.150 Approval Process.
20.32.160 Affordable Housing Agreement.
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20.32.010 Purpose.
The purpose of this chapter is to provide a means for granting density bonuses and incentives
in compliance with Government Code Sections 65915 through 65918 as the same may be
amended from time to time. This chapter provides regulations for considering density bonus
and incentive requests for the development of housing that is affordable to lower-, low-, and
moderate-income households, foster youth, disabled veterans, homeless persons, lower-
income students, senior citizens, and childcare.
20.32.020 Definitions.
As used in this chapter, the following words shall have the following meanings:
A. “Affordable Housing” means housing for which the allowable housing expenses paid by a
qualifying household shall not exceed a specified fraction of the county median income,
adjusted for household size. This includes housing designated for extremely low-, very low,
low-, and moderate-income households.
B. “Childcare Facility” means a child day care facility, other than a family day care home,
including, but not limited to, infant centers, preschools, extended day care facilities, and
school-age childcare center. “Childcare facility” does not include public or private primary
or secondary education facilities.
C. “Condominium Conversion” means the conversion of apartments, or other rental units, into
ownership property that consist of an undivided interest in common in a portion of real
property coupled with a separate interest within the boundaries of the dwelling unit.
D. “Density Bonus” means a density increase over the maximum allowable residential density
under applicable zoning and Land Use Element of the General Plan as of the date of
application.
E. “Development Standard” means a site or construction condition, including, but not limited
to, a height limitation, setback requirement, floor area ratio, an onsite open-space
requirement, or a parking ratio that applies to a housing development pursuant to any
ordinance, general plan policy, specific plan, or other local condition, law, policy, resolution,
or regulation. Development standard shall not mean an impact fee, inclusionary housing
requirement, or dedication of land.
F. “Disabled Veteran” means any veteran who is currently declared by the United States
Veterans Administration to be ten (10) percent or more disabled as a result of service in the
armed forces. Proof of such disability shall be deemed conclusive if it is of record in the
United States Veterans Administration.
G. “Equivalent Financial Value” means an incentive that would result in a reduction in cost to
the developer/property owner based upon the land cost per dwelling unit and shall be
calculated based upon the difference in the value of the land with and without the density
bonus.
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H. “Equivalent Size” means that the replacement units specified in Section 20.32.120 contain
at least the same total number of bedrooms as the units being replaced.
I. “Foster Youth” means a person in California whose dependency was established or
continued by a court of competent jurisdiction, including a tribal court, on or after the youth's
13th birthday and who is no older than 25 years of age at the commencement of the
academic year.
J. “Homeless Person” shall have the same meaning as that phrase is defined in Section 11302
of the federal McKinney-Vento Homeless Assistance Act (42U.S.C. Ch. 119).
K. “Housing Development” means a development project for five (5) or more residential
dwelling units, including mixed-use developments, subdivisions, or common interest
development. A “housing development” may consist of residential units, unimproved
residential lots, a project to substantially rehabilitate and convert an existing commercial
building to residential use, or the substantial rehabilitation of an existing multifamily dwelling
where the result of the rehabilitation would result in a net increase in available residential
units. For purposes of calculating a density bonus, the residential units shall be on
contiguous sites that are the subject of one (1) development application but may include
more than one subdivision map.
L. “Lower Income Student” means a student who has a household income and asset level that
does not exceed the level for Cal Grant A or Cal Grant B award recipients as set forth
Education Code Section 69432.7(k)(1). The eligibility of a student to occupy a unit for lower
income students under this section shall be verified by an affidavit, award letter, or letter of
eligibility provided by the institution of higher education in which the student is enrolled or
by the California Student Aid Commission that the student receives or is eligible for financial
aid, including an institutional grant or fee waiver from the college or university, the California
Student Aid Commission, or the federal government.
M. “Major Transit Stop” means a site containing an existing rail transit station or the intersection
of two (2) or more major bus routes with a frequency of service interval of fifteen (15)
minutes or less at the intersection of the two (2) routes during both the morning and
afternoon peak commute hours.
N. “Natural or Constructed Impediments” means a hindrance or obstruction that prevents
pedestrian or bicycle access to a major transit stop. Natural or constructed impediments
include, but are not limited to, freeways, rivers, mountains, harbors, and bodies of water,
but does not include residential structures, shopping centers, parking lots, or rails used for
transit.
O. “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 the application was deemed complete. The following
shall not constitute a specific, adverse impact upon the public health or safety: (1)
inconsistency with the zoning ordinance or general plan land use designation, or (2) the
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eligibility to claim a welfare exemption under subdivision (g) of Section 214 of the Revenue
and Taxation Code.
P.“Transitional Foster Youth” means a person whose dependency was established or
continued by the court on or after the youth’s 16th birthday and who is no older than 25
years of age at the commencement of the academic year.
Q.“Unobstructed Access” means a major transit stop that the income qualified resident of the
housing development is able to walk or bike to from the residence without encountering
natural or constructed impediments, which include, but are not limited to, freeways, rivers,
mountains, harbors and other bodies of water, but does not include residential structures,
shopping centers, parking lots, or rails used for transit with legal pedestrian access through
the property.
20.32.030 Eligibility for Density Bonus and Incentives.
In order to be eligible for a density bonus, incentive(s) or concession(s), or waiver or reduction
of development standard(s) as provided by this chapter, a housing development or
condominium conversion shall comply with the following requirements and satisfy all other
applicable provisions of this Zoning Code, except as otherwise provided by this Chapter.
A.Eligibility Requirements. A housing development shall include only one (1) of the following:
1.A minimum of five (5) percent of the total number of units of a housing development as
restricted and affordable to very low-income households.
2.A minimum of ten (10) percent of the total number of units of a housing development as
restricted and affordable to low-income households.
3.A minimum of ten (10) percent of the total units in a for-sale housing development as
restricted and affordable to moderate-income households provided that all units in the
housing development are offered to the public for purchase.
4.One hundred (100) percent of all units in a housing development, exclusive of a
manager’s unit or units, as restricted and affordable to lower-income households, except
that no more than twenty (20) percent of the units in the development, including total
units and density bonus units, may be affordable to moderate-income households.
5.A minimum of ten (10) percent of the total units of a housing development project for
transitional foster youth, disabled veterans, or homeless persons provided at the same
affordability level as very low-income units.
6.A minimum of twenty (20) percent of the total units of a housing development are
affordable to lower-income college students.
7.A condominium conversion project where either thirty-three (33) percent of the units
converted are affordable to low- or moderate-income households, or fifteen (15) percent
of the units converted are affordable to very low- or extremely low-income households.
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8. A senior citizen housing development as defined in Civil Code Sections 51.3 and 51.12
that has at least thirty-five (35) dwelling units or a mobile home park that limits residency
based on age requirements for housing older persons in compliance with Civil Code
Sections 798.76 or 799.5.
9. The applicant for a housing development project donates at least one (1) acre of land to
the City of Newport Beach for very low-income units, provided the land has the
appropriate general plan designation, zoning, permits and approvals, and access to
public facilities needed for such housing.
B. Housing Development Not Eligible for a Density Bonus, Concession, Incentive, or Waiver.
A housing development shall not be eligible for a density bonus, or any incentive,
concession, or waiver of a development standard under this Chapter on a property
containing existing affordable housing unless:
1. The housing development replaces the existing affordable units in accordance with all
of the requirements set forth in Section 20.32.120; and
2. The housing development, inclusive of the units replaced pursuant to this paragraph,
contains affordable units at least one (1) of the percentage levels set forth in Section
20.32.030(A).
20.32.040 General Requirements.
A. Fractional Units. The calculation of a density bonus in compliance with this section that
results in fractional units, including base density and bonus density, shall be rounded up to
the next whole number.
B. Mixed Income Development. If a housing development qualifies for a density bonus under
more than one (1) income category; as senior housing; or as housing intended to serve
transitional foster youth, disabled veterans, or homeless persons; the applicant shall select
only one (1) of the above categories in the application. Density bonuses from more than
one (1) category may not be combined.
C. General Plan & Zoning Consistency. The granting of a density bonus, in and of itself, shall
not be interpreted as requiring a General Plan amendment, Zoning Map amendment, or
other discretionary approval.
D. Financial Incentives. The provisions of this Chapter shall not be interpreted to require or
limit the City from providing direct financial incentives, including the provision of publicly
owned land or the waiver of fees or dedication requirements.
E. Increased Density Limit. A housing development shall not exceed the cumulative total of
base units allowed by the underlying zone and the bonus density units allowed by Section
20.32.050. Incentives, concessions, or development standard waivers shall not be used to
increase density.
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F.Reduced Density. An applicant for a Density Bonus may elect to provide a lesser
percentage of density increase than what is allowed authorized by Section 20.32.050
including, but not limited to, no increase in density, but shall remain eligible for concessions
or incentives, waivers of development standards, and eligible parking requirements
provided the project meets the eligibility requirements of this Section.
20.32.050 Allowed Density Bonuses.
A housing development that complies with one (1) of the eligibility levels in Section 20.32.030
is entitled to a density bonus as follows, unless a lesser percentage is proposed by the
applicant.
A.Density Bonus for Very Low, Low, and Moderate-Income Households. A housing
development that is eligible for a density bonus pursuant to Section 20.32.030(A)(1) through
Section 20.32.030(A)(4) is entitled to a density bonus calculated as follows:
TABLE 3-6
VERY LOW, LOW, AND MODERATE-
Density Bonus Percentage
Percentage of
Base
Units Proposed
Very Low Income Low Income Moderate Income
5% 20% - -
6% 22.5% - -
7% 25% - -
8% 27.5% - -
9% 30% - -
10% 32.5% 20% 5%
11% 35% 21.5% 6%
12% 38.75% 23% 7%
13% 42.5% 24.5% 8%
14% 46.25% 26% 9%
15% 50% 27.5% 10%
16% 50% 29% 11%
17% 50% 30.5% 12%
18% 50% 32% 13%
19% 50% 33.5% 14%
20% 50% 35% 15%
21% 50% 38.75% 16%
22% 50% 42.5% 17%
23% 50% 46.25% 18%
24% 50% 50% 19%
25% 50% 50% 20%
26% 50% 50% 21%
27% 50% 50% 22%
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28% 50% 50% 23%
29% 50% 50% 24%
30% 50% 50% 25%
31% 50% 50% 26%
32% 50% 50% 27%
33% 50% 50% 28%
34% 50% 50% 29%
35% 50% 50% 30%
36% 50% 50% 31%
37% 50% 50% 32%
38% 50% 50% 33%
39% 50% 50% 34%
40% 50% 50% 35%
41% 50% 50% 38.75%
42% 50% 50% 42.5%
43% 50% 50% 46.25%
44% 50% 50% 50%
100% 80% 80% 80%
Notwithstanding the foregoing, a cap on density will not apply if both of the following conditions
are met:
1. One hundred (100) percent of the units in a housing development exclusive of a
manager’s unit or units, are restricted and affordable to very-low and low-income
households, except that no more than twenty (20) percent of the total units (including
density bonus units) in the housing development are restricted and affordable to
moderate-income households.
2. The housing development is located within one-half mile of a major transit stop with
unobstructed access.
B. Density Bonus for Transitional Foster Youth, Disabled Veterans, or Homeless Persons. A
housing development that is eligible for a density bonus at the level set forth in Section
20.32.030(A)(5) shall be entitled to a density bonus of twenty (20) percent.
C. Density Bonus for Lower Income College Students. A student housing development that is
eligible for a density bonus at the level set forth in Section 20.32.030(A)(6) shall be entitled
to a density bonus of thirty-five (35) percent.
1. All units in the student housing development will be used exclusively for undergraduate,
graduate, or professional students enrolled full-time at an institution of higher education
accredited by the Western Association of Schools and Colleges or the Accrediting
Commission for Community and Junior Colleges.
2. The applicant or property owner shall provide evidence to the City that the housing
development shall be subject to an operating agreement or lease with one (1) or more
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institution of higher education that all units shall be exclusively occupied by the students
of the institution(s).
3. The rent for affordable units shall be calculated at thirty (30) percent of sixty-five (65)
percent of the area median income for a single-room occupancy unit.
4. Priority for the affordable units shall be given to lower income students experiencing
homelessness. A homeless service provider, as defined in paragraph (3) of subdivision
(e) of Section 103577 of the Health and Safety Code, or institution of higher education
that has knowledge of a person’s homeless status may verify a person’s status as
homeless for purposes of this subsection.
5. For purposes of calculating a density bonus granted pursuant to this section, the term
“unit” shall mean one (1) rental bed and its pro rata share of associated common area
facilities.
D. Density Bonus for Condominium Conversion. A condominium conversion that is eligible for
a density bonus pursuant to Section 20.32.030(A)(7) shall be entitled to a density bonus of
twenty-five (25) percent provided the condominium conversion meets all of the
requirements in Section 20.32.100.
E. Density Bonus for Senior Housing. A senior housing development that is eligible for a
density bonus pursuant to Section 20.32.030(A)(8) shall be entitled to a density bonus of
twenty (20) percent.
F. Density Bonus for donating land for very low-income units. A housing development that
includes the donation of land for the development of very low-income housing pursuant to
Section 20.32.030(A)(9) is entitled to a density bonus calculated as follows:
TABLE 3-7
LAND DEDICATED TO ACCOMMODATE VERY LOW-INCOME
Percentage of
Base
Units Proposed
Density Bonus
Percentage
10% 15%
11% 16%
12% 17%
13% 18%
14% 19%
15% 20%
16% 21%
17% 22%
18% 23%
19% 24%
20% 25%
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21% 26%
22% 27%
23% 28%
24% 29%
25% 30%
26% 31%
27% 32%
28% 33%
29% 34%
30% 35%
1. Any increase authorized by this subsection may be approved in addition to any increase
in density allowed by Section 20.32.030 up to a maximum combined density increase of
thirty-five (35) percent.
2. The donated land shall be the greater of:
a. One (1) acre;
b. Sufficient square-footage or acreage to permit development of the percentage of
base units proposed; or
c. Sufficient square-footage or acreage to permit development of forty (40) units
under the existing general plan and zoning designation.
3. The existing general plan and zoning designation of the donated land shall is zoned to
accommodate at least 30 dwelling units per acre and is served by adequate public
facilities and infrastructure or will be served by adequate public facilities and
infrastructure by the housing development.
4. The land shall be donated and transferred to the City or a housing developer that is
approved by the City. The applicant shall donate and transfer the land no later than the
date of approval of the final subdivision map, or issuance of building permits for a
housing development where no subdivision is required.
5. The City shall not approve the final subdivision map or issue building permits for the
housing development unless and until all permits, other than building permits, for the
development of very low-income housing have been issued for the donated and
transferred land.
6. The donated and transferred land shall be within the boundary of the housing
development, or upon approval of the reviewing authority, within one-quarter (1/4) mile
of the boundary of the housing development.
7. The source of funding for the development of very low-income housing on the donated
and transferred land shall be identified not later than the date of approval of the final
subdivision map or issuance of building permits for the housing development.
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8.The donated and transferred land and the affordable units shall be subject to a deed
restriction recorded on the property at the time of transfer ensuring continued
affordability of the units consistent with Section 20.32.130.
20.32.060 Parking Requirements in Density Bonus Projects.
A.Applicability. For a housing development that meets one (1) of the eligibility levels in Section
20.32.030, the applicant may request application of the parking requirements set forth
herein. An applicant may request additional parking incentives beyond those provided in
this section in compliance with Sections 20.32.070 and 20.32.080.
B.Number of Parking Spaces Required.
1.Parking Ratios. At the request of the applicant, the following minimum parking ratios
apply to the housing development:
Dwelling Unit Size Onsite Parking per
Unit
Studio to 1 Bedroom 1 space
2 to 3 Bedrooms 1.5 spaces
4 or more Bedrooms 2.5 spaces
2.Within One-Half Mile (½) of Major Transit Stop. Notwithstanding subsection B(1), if a
housing development provides at least twenty (20) percent low-income units or eleven
(11)percent very low-income units and is located within one-half (½) mile of a major
transit stop with unobstructed access; then upon the request of the developer, the City
may not impose a vehicular parking ratio, inclusive of handicapped and guest parking,
that exceeds 0.5 spaces per bedroom.
3.Zero Parking. Notwithstanding subsection B(1), if a housing development consists
solely of rental units affordable to lower income families; then upon the request of the
developer, the City may not impose a vehicular parking ratio, inclusive of handicapped
and guest parking, if either of the following criteria are met:
a.The housing development is located within one-half (½) mile of a major transit
stop with unobstructed access from the housing development;
b.The housing development is a for-rent housing development for individuals who
are 62 years of age or older that meet the definition in Sections 51.2 and 51.3 of
the Civil Code and the housing development has either paratransit service or
unobstructed access within one-half (½) mile to a fixed bus route that operates
at least eight (8) times per day; or
c.The housing development is either a special needs housing development, as
defined in Section 51312 of the Health and Safety Code, or supportive housing
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development as defined in Section 50675.14 of the Health and Safety Code, and
the housing development has either paratransit service or unobstructed access
within one-half mile of a fixed bus route that operates at least eight (8) times per
day.
4. Notwithstanding paragraphs (2) and (3), if the City or an independent consultant has
conducted an areawide or jurisdiction-wide parking study in the last seven (7) years,
then the City may impose a higher vehicular parking ratio not to exceed the ratio
described in paragraph (1), based upon substantial evidence found in the parking
study, that includes, but is not limited to, an analysis of parking availability, differing
levels of transit access, walkability access to transit services, the potential for shared
parking, the effect of parking requirements on the cost of market-rate and subsidized
developments, and the lower rates of car ownership for low-income and very low
income individuals, including seniors and special needs individuals.
C. Location of Parking. For purposes of this section, a housing development may provide on-
site parking through uncovered or tandem parking, but not through on-street parking.
D. Rounding of Partial Parking Spaces. If the total number of parking spaces required for a
housing development is other than a whole number, the number shall be rounded up to the
next whole number.
20.32.070 Allowed Incentives or Concessions.
A. Applicant Request and City Approval. The applicant shall include any request for
incentive(s) or concession(s) listed in subsection (C) of this section concurrently with the
application for project approval. The applicant shall provide documentation establishing that
an incentive or concession is necessary to make the housing units economically feasible.
When an applicant makes a request for an incentive or concession, the review authority
shall grant the request unless one or more of the following findings is made, based on
substantial evidence:
1. The incentive or concession is not required in order to provide affordable housing
costs or for rents for the targeted units to be set as specified in Section 20.32.130(B);
2. The incentive or concession would have a specific adverse impact upon public health
and safety, or on any real property listed in the California Register of Historical
Resources and for which there is no feasible method to satisfactorily mitigate or avoid
the specific adverse impact without rendering the development unaffordable to low-
and moderate-income households; or
3. The incentive would be contrary to state or federal law.
B. Number of Incentives or Concessions. Except as provided in subsection (A) of this section,
the review authority shall grant the following number of incentives or concessions:
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1. One (1) incentive or concession for a housing development that includes at least ten
(10) percent of the total units for low-income households, at least five (5) percent of the
total units for very low-income households, at least twenty (20) of the total units for low-
income students in a student housing development, or at least ten (10) percent of the
total units for persons and families of moderate income in a for-sale housing
development.
2. Two (2) incentives or concessions for a housing development that includes at least
seventeen (17) percent of the total units for low-income households, at least ten (10)
percent of the total units for very low-income households, or at least twenty (20) percent
of the total units for persons and families of moderate income in a for-sale housing
development.
3. Three (3) incentives or concessions for a housing development that includes at least
twenty-four (24) percent of the total units for low-income households, at least fifteen (15)
percent of the total units for very low-income households, or at least thirty (30) percent
of the total units for persons and families of moderate income in a for-sale housing
development.
4. Four (4) incentives or concession for projects that meet the criteria of Section
20.32.030(A)(4). If the housing development is located within one-half (½) mile of a
major transit stop with unobstructed access, the housing development is eligible for a
height increase of up to three (3) additional stories, or thirty-three (33) feet.
C. Type of Incentive or Concession. For the purposes of this chapter, “incentive” or
“concession” mean any of the following:
1. A reduction in the development standards, including but not limited to, a height limitation,
a setback requirement, a floor area ratio, an open space requirement, or parking ratio
(in excess of the provisions identified in Section 20.32.060), or architectural design
requirements that exceed the minimum building standards approved by the California
Building Standards Commission in compliance with Health and Safety Code Section
18901 et seq., that would otherwise be required, that results in identifiable, financially
sufficient, and actual cost reductions;
2. A mixed-use project in conjunction with the housing development, if the nonresidential
portion of the mixed-use project will reduce the cost of the housing development; is
compatible with the residential portion of the housing development; and is compatible
with adjacent existing or planned development;
3. A reduction or waiver of any City imposed fee or dedication of land. Approval of a fee
reduction or waiver of fee and/or dedication of land shall be at the sole discretion of the
City Council and is not required to be approved; and/or
4. Other regulatory incentives that will result in identifiable, financially sufficient, and actual
cost reductions.
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20.32.080 Waivers or Reductions of Development Standards.
In addition to requesting an incentive or concession, an applicant for a density bonus may also
submit a proposal to the City to waive or reduce an unlimited number of development standards
that would otherwise preclude or inhibit construction of the housing development at the
densities or with the incentives permitted by this Chapter.
A.When an applicant makes a request for a waiver, the review authority shall grant the request
unless, based on substantial evidence, any of the following findings are made:
1.The waiver or reduction of development standards would have a specific adverse impact
upon public health or safety, and for which there is no feasible method to satisfactorily
mitigate or avoid the specific adverse impact.
2.The waiver or reduction of development standards would have an adverse impact on
any real property listed in the California Register of Historical Resources.
3.The waiver or reduction of development standards would be contrary to state or federal
law.
B.Notwithstanding Section 20.32.080(A), a housing development that is eligible for no cap on
density pursuant Section 20.32.050(A) shall only be eligible for a waiver or reduction of
development standards as provided in Section 20.32.070(B)(4), unless the review authority
grants additional waivers or reductions.
20.32.090 Incentives for Housing with Child Care Facilities.
A housing development that complies with the income requirements of Section 20.32.030(A)
and also includes a childcare facility, other than a large or small family day care home, that will
be located on the same site as the development, shall be eligible for the following incentives in
addition to the incentives provided for the affordable housing.
A.Incentives. The City shall grant a housing development that includes a childcare facility
either of the following incentives:
1.An amount of residential floor area equal to or greater than the floor area of the childcare
facility; or
2.An incentive that contributes to the economic feasibility of the childcare facility (e.g.,
reduction of development standards, reduced parking requirements, monetary
contribution) as provided in Section 20.32.070(C).
B.Requirements to Qualify for Incentives. The City shall require, as a condition of approving
the housing development, that:
1.The childcare facility shall remain in operation for a period of time that is as long as or
longer than the period of time during which the density bonus units are required to
remain affordable in compliance with Section 20.32.130; and
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2.Of the children who attend the childcare facility, the children of very low-income
households, low-income households, or families of moderate income shall equal a
percentage that is equal to or greater than the percentage of dwelling units that are
required for very low-income households, lower-income households, or families of
moderate income in compliance with Section 20.30.030(A).
C.Incentive Not Required. The City shall not be required to provide a density bonus for a
childcare facility if it finds, based upon substantial evidence, that the community has
adequate childcare facilities.
20.32.100 Condominium Conversions.
A.Density Bonus. When an applicant proposes to convert apartments to condominiums, which
meet the eligibility level in Section 20.32.030(A)(7), the City shall grant either a density
bonus of up to twenty-five (25) percent pursuant to Section 20.32.050(D) to create additional
units on the project site or other incentive of equivalent financial value provided:
1.The applicant agrees to pay for the reasonably necessary administrative costs,
including, but is not limited to, staff costs, consultant fees, photocopy costs, and mailing
fees, incurred by the City; and
2.The City places such reasonable conditions on the granting of a density bonus or other
incentives of equivalent financial value as it finds appropriate, including, but not limited
to, conditions which assure continued affordability of units to subsequent purchasers
who are persons and families of very low-, low- and moderate-income households.
B.Replacement Units. All units within the condominium conversion shall meet the replacement
requirements in Section 20.32.120.
C.Ineligible Requests. Apartments which are proposed for conversion to condominiums shall
be ineligible for a density bonus or other incentive under the section if the apartments were
previously granted a density bonus, concession, incentives, or waiver or reduction of
development standards.
D.Preapplication Process. An applicant may submit to the City a preliminary application for
the condominium conversion on a form provided by the Director prior to the submittal of an
application under Chapters 19.08 and 19.64. Within ninety (90) days of receipt of the
preliminary application, the City shall notify the applicant in writing whether the application
is eligible for a condominium conversion pursuant to this section.
E.Approval. An application for condominium conversion shall meet the requirements set forth
in Chapter 19.64. Nothing in this section shall be construed to require the City to approve
an application for a condominium conversion.
20.32.110 Design and Distribution of Affordable Units.
Affordable units shall be designed and distributed within the housing development as follows:
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A. Number of Bedrooms. Affordable units shall reflect the range of numbers of bedrooms
provided in the residential development project as a whole;
B. Comparable Quality and Facilities. Affordable units shall be comparable in the facilities
provided (e.g., laundry, recreation, etc.) and in the quality of construction and exterior
design to the market-rate units;
C. Access. In mixed-income multi-unit structures, the occupants of the affordable housing units
shall have the same access to common entrances and any common areas including parking
areas in that structure as the occupants of the market-rate housing units;
D. Size. Affordable units may be smaller and have different interior finishes and features than
the market-rate units; and
E. Location. Affordable units shall be distributed within the residential development, unless
clustering is allowed by the review authority. Notwithstanding, in a mixed-income multi-unit
structure, affordable units shall not be isolated to a specific floor or an area of a specific
floor.
20.32.120 Replacement Units.
An application for a density bonus on any property with existing rental dwelling units or rental
dwelling units that were vacated or demolished within the five (5) years preceding the
application; and are/were subject to a recorded covenant that restricts rents to very low- or low-
income households, or are/were occupied by very low- or low-income household shall be
subject to the following:
A. Occupied Units. For rental dwelling units that are occupied on the date of the application,
the housing development shall provide at least the same number of affordable units of
equivalent size to be made available at affordable rent or affordable housing cost to, and
occupied by, persons or families in the same or lower income category as those households
in occupancy.
B. Vacant or Demolished Units. For rental dwelling units that have been vacated or demolished
within the five (5) years preceding the application, the housing development shall provide
at least the same number of affordable units of equivalent size as existed at the highpoint
of those units in the five (5) years preceding the application to be made available at
affordable rent or affordable housing cost to, and occupied by, persons and families in the
same or lower income category as those persons and families in occupancy at that time.
C. Unknown Household Income. If the income of the existing occupants or occupants within
the past five (5) years is unknown to the City or the applicant, it shall be rebuttably presumed
that the rental dwellings units were occupied by low-income and very low-income renter
households as determined by the most recently available data from the United States
Department of Housing and Urban Development’s Comprehensive Housing Affordability
Strategy database.
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20.32.130 Continued Availability.
The units that qualified the housing development for a density bonus and other incentives shall
continue to be available as affordable and/or senior units in compliance with the following
requirements:
A. Duration of Availability. The applicant shall agree to, and the City shall ensure the continued
availability of the units that qualified the housing development for a density bonus and other
incentives for at least fifty-five (55) years, or a longer time if required by the construction or
mortgage financing assistance program, mortgage insurance program, or rental subsidy
program.
B. Affordable Costs. The rents and owner-occupied costs charged for the housing units shall
not exceed the following amounts during the period of continued availability required by this
section:
1. Rental Units. Rents for density bonus units shall be set at an affordable rent as defined
in Health and Safety Code Section 50053; and
2. Owner-Occupied Units. Owner-occupied units shall be available at an affordable
housing cost as defined in Health and Safety Code Section 50052.5.
20.32.140 Occupancy and Resale of Ownership Units.
A housing development that includes for-sale units that are restricted and affordable to
moderate-income households shall limit the occupancy and resale of the units as follows.
A. Occupancy. The initial occupants of a for-sale unit, which qualified the applicant for the
award of the density bonus, meets either of the following conditions:
1. The unit is initially occupied by a person or family of very low, low, or moderate income,
as required, and it is offered at an affordable housing cost, as that cost is defined in
Section 50052.5 of the Health and Safety Code and is subject to an equity sharing
agreement.
2. The unit is purchased by a qualified nonprofit housing corporation pursuant a contract
that is recorded to the property, and all of the following are satisfied:
a. The nonprofit housing corporation is organized pursuant to Internal Revenue Code
Section 501(c)(3) and has received a welfare exemption under Revenue and
Taxation Code Section 214.15 for properties intended to be sold to low-income
families who participate in a special no-interest loan program;
b. The contract restricts the use of the land for at least thirty (30) years to owner-
occupied housing that is available at an affordable housing cost;
c. The contract includes a deed of trust on the property in favor of the nonprofit
corporation to ensure compliance with the terms of the program, which has no value
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unless the owner fails to comply with the covenants and restrictions of the terms of
the home sale;
d. The City Attorney finds that the long-term deed restrictions in the contract serve a
public purpose;
e. A repurchase option that requires a subsequent purchaser of the property that
desires to sell or convey the property to offer the qualified nonprofit corporation the
right to repurchase the property prior to selling or conveying that property to any
other purchaser; and
f. Affordability restrictions on the sale and conveyance of the property that ensure that
the property will be preserved for lower income housing for at least forty-five (45)
years for owner-occupied housing units and will be sold or resold only to persons or
families of very low, low, or moderate income.
B. Resale. As part of the affordable housing agreement required pursuant to Section
20.32.160, the applicant shall enter into an equity sharing agreement with the City for the
resale of affordable common interest units, unless it would be in conflict with the
requirements of another public funding source or law. In lieu of an equity sharing agreement,
the housing project could sell the units to a nonprofit housing corporation pursuant to
Section 20.32.140(A)(2). The following requirements apply to the equity sharing agreement:
1. Upon resale, the seller of the unit shall retain the value of any improvements, the down
payment, and the seller’s proportionate share of appreciation; and
2. The City shall recapture any initial subsidy and its proportionate share of appreciation,
which shall then be used within five (5) years for any of the purposes described in Health
and Safety Code Section 33334.2(e) that promote home ownership. For the purposes
of this section:
a. The City’s initial subsidy shall be equal to the fair market value of the home at the
time of initial sale, minus the initial sale price, plus the amount of any down payment
assistance or mortgage assistance. If upon resale the market value is lower than the
initial market value, then the value at the time of the resale shall be used as the initial
market value;
b. The City’s proportionate share of appreciation shall be equal to the ratio of the initial
subsidy to the fair market value of the home at the time of initial sale; and
c. The initial subsidy shall include any incentives granted by the City and shall be equal
to the monetary equivalent of the incentives.
20.32.150 Approval Process.
An applicant requesting a density bonus, incentive, concession, or waiver pursuant to this
chapter shall require approval of an Affordable Housing Implementation Plan pursuant to
Sections 20.50.030 and 20.52.015.
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20.32.160 Affordable Housing Agreement.
The applicant approved for a density bonus, concession, incentive, or waiver under this
Chapter shall agree to construct, operate and maintain the affordable units in accordance with
an affordable housing agreement. The affordable housing agreement shall be executed in a
recordable form prior to the issuance of a building permit for any portion of a housing
development subject to the requirements of this Chapter. The affordable housing agreement
shall be binding upon all future owners and successors in interest.
A. Review. The terms of the affordable housing agreement shall be reviewed and revised as
appropriate by the Director and City Attorney.
B. Fees. The City may establish fees associated with the setting up and monitoring of the
affordable units.
C. Contents. The affordable housing agreement shall include at least the following:
1. Identification of Affordable Units. Affordable units shall be identified by address and legal
description, type (floor area, number of bedrooms/baths, unit size, etc.), and designated
household income category. The affordable housing agreement shall also identify the
total number of affordable units and total number of units approved for the housing
development.
2. Term of Affordability. Unless specified elsewhere in this Chapter, a minimum term of
fifty-five (55) years of the specified affordability shall be required. Such reservation
period shall begin on the date a certificate of occupancy is granted for the affordable
units.
3. Maximum Allowable Rent or Sales Price.
a. Rental Housing Developments. In the case of rental housing developments, the
affordable housing agreement shall provide for the following conditions governing
the use of the affordable housing units during the use restriction period:
i. The rules and procedures for qualifying tenants, establishing affordable rent,
filling vacancies, and maintaining the affordable units for qualified tenants.
ii. Provisions requiring owners to verify tenant incomes and maintain books and
records to demonstrate compliance with this chapter.
iii. Provisions requiring owners to submit an annual report to the City, which includes
the name, address and income of each person occupying each affordable unit,
and which identifies the bedroom size and monthly rent or cost of each affordable
unit.
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iv.Determination of Rent. A maximum rent schedule shall be submitted to the City
prior to the issuance of an occupancy permit for the affordable units, and updated
annually on the anniversary date of occupancy.
v.Deposit Amount. Total move-in costs for eligible tenants occupying affordable
units shall be limited to first month's rent plus a security/cleaning deposit not to
exceed one month's rent.
vi.Upward Mobility Allowance. When a tenant occupying an affordable unit no
longer qualifies under the income requirements, verified through the monitoring
program required as part of the affordable housing agreement, that tenant may
then be charged market rate rent. If this occurs, any currently vacant unit of
similar type to the affordable unit in question shall then be designated as an
affordable unit, and the owner shall immediately attempt to secure tenants in
accordance with this chapter. The owner is required to maintain at all times during
the use restriction the minimum number of affordable units identified in the
affordable housing agreement.
vii.Subletting of Affordable Units. No subletting or short-term occupancy of
designated affordable units shall be allowed.
b.Ownership Projects. In the case of for-sale housing developments, as a condition of
approval of the housing development, the City shall require an affordable housing
agreement that includes the following conditions governing the initial sale and use of
affordable units during the applicable use period:
i.Affordable units shall, upon initial sale, be sold to eligible very low- and low-income
households at an affordable sales price and housing cost, or to qualifying
residents in the case of a senior citizen housing development.
ii.Affordable units shall be initially owner-occupied by eligible very low- or low-
income households, or by qualifying residents in the case of a senior citizen
housing development.
iii.The initial purchaser of each affordable housing unit shall execute an instrument
or agreement approved by the City restricting the sale of the affordable housing
unit in accordance with this chapter during the applicable use restriction period.
Such instrument or agreement shall be recorded against the parcel containing the
affordable housing unit and shall contain such provisions as the City may require
to ensure continued compliance with this chapter and State Density Bonus Law.
iv.Sale Clause. The affordable housing agreement shall stipulate that, when the
terms of affordability expire on an affordable unit, the City and/or a non-profit
housing organization shall have a first right of purchase option sixty (60) days prior
to the affordable unit being advertised on the market.
v.Rental of For-Sale Units. Rental of affordable units shall not be allowed.
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vi. Monitoring of Compliance to Agreement. A monitoring program shall be required,
specifying the party responsible for certifying tenant incomes and sales price,
maintaining the required number of affordable units and each affordable unit's
property, and marketing and filling unit vacancies.
c. Equity Sharing Agreements. When an equity sharing agreement is required by this
chapter, the affordable housing agreement shall specify the equity sharing
agreement comply with Section 20.32.140.
4. Remedies. Description of remedies for breach of the affordable housing agreement by
either party (the City may identify tenants or qualified purchasers as third-party
beneficiaries under the agreement).
5. Description of Density Bonus. A description of the incentives and/or concessions, if any,
being provided by the City.
6. Schedule. A schedule for completion and occupancy of the affordable units.
7. Other Provisions. Other provisions to ensure implementation and compliance with this
chapter.
Section 3: Table 5-1 of Subsection B of Section 20.50.030 (Multiple Permit Applications)
of Title 20 (Planning and Zoning) the NBMC is hereby amended to read as follows:
TABLE 5-1
REVIEW AUTHORITY
Type of Action
Applicable
Code
Chapter/Section
Role of Review Authority (1)
Director
Zoning
Administrator
Hearing
Officer Commission
Council
(2)
Administrative and Legislative
Interpretations Section
20.12.020
Determination
(3)
Appeal Appeal
Planned
Communities
Chapter 20.56 Recommend Decision
Specific Plans Chapter 20.58 Recommend Decision
Zoning Code
Amendments
Chapter 20.66 Recommend Decision
Zoning Map
Amendments
Chapter 20.66 Recommend Decision
Permits and Approvals
Affordable
Housing
Implementation
Plan
Chapter 20.32 Decision (3)
(4)
Appeal/
Decision (4)
Appeal/
Decision
(4)
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TABLE 5-1
REVIEW AUTHORITY
Type of Action
Applicable
Code
Chapter/Section
Role of Review Authority (1)
Director
Zoning
Administrator
Hearing
Officer Commission
Council
(2)
Comprehensive
Sign Program
Decision (3) Appeal
Conditional Use
Permits
Section
20.52.020
Decision Appeal
Conditional Use
Permits—
Residential Zones
HO
Section
20.52.030
Decision Appeal
Heritage Sign Decision Appeal
Innovative Sign
Program
Decision Appeal
Limited Term
Permits
Section
20.52.040
Decision (3) Appeal Appeal
Minor Use Permits Section
20.52.020
Decision (3) Appeal Appeal
Modification
Permits
Section
20.52.050
Decision (3) Appeal Appeal
Planned
Development
Permits
Section
20.52.060
Decision Appeal
Reasonable
Accommodations
Section
20.52.070
Decision Appeal
Sign Permits Chapter 20.42 Determination
(3)
Appeal Appeal
Site Development
Reviews (See
Table 5-2 (Review
Authority for Site
Development
Reviews))
Section
20.52.080
Decision (3) Decision Appeal
Variances Section
20.52.090
Decision Appeal
Zoning Clearances Section
20.52.100
Determination
(3)
Appeal Appeal
Notes:
(1) “Recommend” means that the Commission makes a recommendation to the Council;
“Determination” and “Decision” mean that the review authority makes the final determination or
decision on the matter; “Appeal” means that the review authority may consider and decide upon
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appeals to the decision of a previous decision-making body, in compliance with Chapter 20.64
(Appeals).
(2) The Council is the final review authority for all applications in the City.
(3) The Director or Zoning Administrator may defer action and refer the request to the Commission
for consideration and final action.
(4) The Zoning Administrator shall be the review authority for density bonus units and parking
reductions. The Planning Commission shall be the review authority for concessions, incentives and
waivers. The City Council shall be the review authority for any financial incentive or fee waiver.
Section 4: Section 20.52.015 (Affordable Housing Implementation Plan) of Title 20
(Planning and Zoning) the NBMC is hereby added to read as follows:
20.52.015 Affordable Housing Implementation Plan.
A. Purpose. An affordable housing implementation plan (AHIP) provides a process to review
and grant density bonuses, concessions, incentives, and development standard waivers in
compliance with Government Code Section 65915 et seq. and Chapter 20.32.
B. Applicability. An affordable housing implementation plan shall be required for any
application that which proposes a density bonus, concession, incentive, or waiver of
development standard pursuant to Chapter 20.32.
C. Application Contents.
1. A legal description of the project site where the target dwelling units will be located
including a statement of present ownership and present and proposed zoning.
2. A letter signed by the present owner stating what specific density bonus, incentives or
concessions, waivers or modifications in development standards are being requested
from the City and if reduced parking pursuant to Section 20.32.060 is being requested.
3. A detailed vicinity map showing the project location and such details as the location of
the nearest commercial retail, transit stop, potential employment locations, park or
recreation facilities or other social or community service facilities.
4. Site plans, floor plans, and building elevations, which shall designate the total number
of units proposed on the site, including the number and location of target dwelling units
and density bonus dwelling units, and supporting plans per the application submittal
requirements.
5. If the project site contains existing dwelling units, a description of the existing dwelling
units. This shall include the number of units, whether owner-occupied or rentals, the
number of bedrooms in each of the units, and evidence to household income of
occupants for the previous five (5) years.
6. In the case of a request for any incentive or concession, evidence that the request will
result in identifiable and actual cost reductions.
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7. In the case of a request for a waiver or reduction of development standards, evidence
that the development standard being waived or reduced will have the effect of physically
precluding the construction of the development at the densities proposed.
D. Application Filing, Processing, and Review. An application for an affordable housing
implementation plan shall be filed and processed in compliance with Chapter 20.50 (Permit
Application Filing and Processing). The application shall include all of the information and
materials specified in Section 20.52.015(C), together with the required fee in compliance
with the City’s fee schedule adopted by resolution.
E. Project Review and Notice and Hearing Requirements. Notice of the public hearing shall be
provided and the hearing shall be conducted in compliance with Chapter 20.62 (Public
Hearings).
F. Findings. The review authority shall approve an affordable housing implementation plan,
unless at least one finding for denial is made pursuant to Sections 20.32.070(A),
20.32.080(A), or 20.32.090(C).
G. Post-Decision Procedures. The procedures and requirements in Chapter 20.54 (Permit
Implementation, Time Limits, and Extensions), and those related to appeals and revocation
in Part 6 of this title (Zoning Code Administration) shall apply following the decision on a
affordable housing implementation plan application.
Section 5: Section 20.70.020 (Definitions of Specialized Terms and Phrases) of Title 20
(Planning and Zoning) the NBMC is hereby amended to add the following definitions with all other
definitions to remain unchanged:
“Density bonus” See Section 20.32.020.
“Extremely low-income household” means persons and families whose income does not exceed
thirty (30) percent of the area median income for Orange County, as published by the California
Department of Housing and Community Development, adjusted for family size and revised
annually.
“Low-income household” means persons and families whose income is greater than fifty (50)
percent but does not exceed eighty (80) percent of the area median income for Orange County,
as published by the California Department of Housing and Community Development, adjusted for
family size and revised annually.
“Moderate-income household” means persons and families whose income is greater than eighty
(80) percent but does not exceed one hundred twenty (120) percent of the area median income
for Orange County, as published by the California Department of Housing and Community
Development, adjusted for family size and revised annually.
“Very low-income household” means persons and families whose income is greater than thirty
(30) percent but does not exceed fifty (50) percent of the area median income for Orange County,
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as published by the California Department of Housing and Community Development, adjusted for
family size and revised annually.
41
INTENTIONALLY BLANK PAGE42
Attachment No. PC 2
Draft Resolution for Local Coastal Program
Amendment
43
INTENTIONALLY BLANK PAGE44
RESOLUTION NO. PC2022-019
A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY
OF NEWPORT BEACH RECOMMENDING CITY COUNCIL
AUTHORIZE SUBMITTAL OF LOCAL COASTAL PROGRAM
AMENDMENT NO. LC2020-004 TO THE CALIFORNIA COASTAL
COMMISSION TO AMEND TITLE 21 (LOCAL COASTAL
PROGRAM IMPLEMENTATION PLAN) OF THE CITY OF
NEWPORT BEACH MUNICIPAL CODE UPDATING
REGULATIONS PERTAINING TO DENSITY BONUS TO COMPLY
WITH STATE LAW (PA2020-032)
THE PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH HEREBY FINDS AS
FOLLOWS:
SECTION 1. STATEMENT OF FACTS.
1. Section 30500 of the California Public Resources Code requires each county and city
to prepare a Local Coastal Program (“LCP”) for that portion of the coastal zone within
its jurisdiction.
2. In 2005, the City of Newport Beach (“City”) adopted the City of Newport Beach Local
Coastal Program Coastal Land Use Plan as amended from time to time.
3. The California Coastal Commission effectively certified the City’s Local Coastal Program
Implementation Plan on January 13, 2017, and the City added Title 21 (Local Coastal
Program Implementation Plan) (“Title 21”) to the City of Newport Beach Municipal Code
(“NBMC”) whereby the City assumed coastal development permit-issuing authority on
January 30, 2017.
4. Chapter 20.32 (Density Bonus) of the Newport Beach Municipal Code (“NBMC”) sets
forth the City of Newport Beach’s (“City”) requirements for granting density bonuses in
compliance with California Government Code Section 65915 et seq. (“State Density
Bonus Law”).
5. Since Chapter 20.32 (Density Bonus) of the NBMC was last updated in 2010 pursuant
to Ordinance No. 2010-21, the California State Legislature has adopted 18 bills that
amend various sections of State Density Bonus Law. Therefore, revisions to Chapter
20.32 (Density Bonus) are necessary in order to ensure consistency with the State
Density Bonus Law.
6. Policy Action 4C of the 2021-2029 General Plan Housing Element states, “The City will
update its Density Bonus Ordinance (Newport Beach Municipal Code Chapter 20.32) to
be consistent with State Law, as amended. Additionally, the City shall either grant a
density bonus as required by state law if requested, or provide other incentives of
equivalent financial value when a residential developer agrees to construct housing for
persons and families of very low, low, and moderate-income above mandated
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Planning Commission Resolution No. PC2022-019
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requirements. The City will continue to implement provisions of Chapter 20.32, as
amended (Density Bonus) of the Zoning Code as housing projects are submitted to the
City during the 6th Cycle. The City will further encourage affordable housing and the
potential use of density bonus statutes to accommodate additional affordable units.”
7. On April 14, 2020, the City Council adopted Resolution No. 2020-36 initiating an
amendment to Title 21 (Local Coastal Program Implementation Plan) of the NBMC
related to density bonuses.
8. Pursuant to Section 13515 (Public Participation and Agency Coordination Procedures)
of the California Code of Regulations Title 14, Division 5.5, Chapter 8, Subchapter 2, Article
5 (“Public Participation”), drafts of LCP Amendment No. LC2020-004 were made available
and a Notice of Availability was distributed at least six (6) weeks prior to the anticipated
final action date.
9. A public hearing was held on July 21, 2022, in the Council Chambers located at 100 Civic
Center Drive, Newport Beach, California. A notice of time, place and purpose of the public
hearing was given in accordance with the California Government Code Section 54950
et seq. (“Ralph M. Brown Act”), Chapter 21.62 (Public Hearings) of the NBMC, and
Section 13515 of the California Code of Regulations. Evidence, both written and oral,
was presented to, and considered by, the Planning Commission at this public hearing.
SECTION 2. CALIFORNIA ENVIRONMENTAL QUALITY ACT DETERMINATION.
Code Amendment No. CA2020-004 is exempt from environmental review under the California
Environmental Quality Act (“CEQA”) pursuant to Section 15061(b)(3) of the CEQA Guidelines,
California Code of Regulations, Title 14, Division 6, Chapter 3, the general rule that CEQA
applies only to projects, which have the potential for causing a significant effect on the
environment. The amendment specifies how the City will comply with and implement State
Density Bonus Law. The bonuses, incentives, and waivers permitted by the ordinance are
already allowed pursuant to State law. The code amendment is further exempt from CEQA
pursuant to Section 15265(a)(1), which exempts local governments from the requirements of
CEQA in connection with the adoption of a Local Coastal Program.
SECTION 3. FINDINGS.
1. Local Coastal Program Amendment No. LC2020-004 is consistent with and implements
California Government Code Section 65915 et. seq.
2. Local Coastal Program Amendment No. LC2020-004 is consistent with the Policy Action
4C and Housing Policy 2.1 of the 2021-2029 Housing Element in that it would bring the
City’s density bonus regulations into compliance with State Density Bonus Law and provide
a method for the City to review and approve density bonuses.
3. Local Coastal Program Amendment No. LC2020-004 shall not become effective until
approval by the California Coastal Commission and adoption, including any modifications
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suggested by the California Coastal Commission, by resolution and/or ordinance of the City
Council of the City of Newport Beach.
4. The LCP, including the proposed amendment, will be carried out fully in conformity with the
California Coastal Act.
5. The recitals provided in this resolution are true and correct and are incorporated into the
operative part of this resolution.
SECTION 4. DECISION.
NOW, THEREFORE, BE IT RESOLVED:
The Planning Commission of the City of Newport Beach hereby recommends submittal of Local
Coastal Program Amendment No. LC2020-004, as set forth in Exhibit “A,” which is attached
hereto and incorporated herein by reference, to the California Coastal Commission.
PASSED, APPROVED, AND ADOPTED THIS 21ST DAY OF JULY, 2022.
AYES:
NOES:
ABSTAIN:
ABSENT:
BY:_________________________
Lauren Kleiman, Chair
BY:_________________________
Mark Rosene Secretary
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EXHIBIT “A”
Local Coastal Program Amendment No. LC2020-004
Section 1: Subsection C(1) of Section 21.12.020 (Rules of Interpretation) of Chapter 21.12
(Interpretation of Implementation Plan Provisions) of Title 21 (Local Coastal Program
Implementation Plan) the NBMC is hereby amended to read as follows:
C.Calculations.
Residential Density. Except for projects that include a density bonus in accordance
with Section 21.32.040(A), when the number of dwelling units allowed on a site is
calculated based on the minimum site area per dwelling unit, any fraction of a unit
shall be rounded down to the next lowest whole number. For example, where a
residential zoning district requires a minimum site area per dwelling unit of one
thousand five hundred (1,500) square feet; a site of ten thousand (10,000) square
feet would be allowed six dwelling units (10,000 sq. ft/1,500 sq. ft. per dwelling unit
= 6.66 dwelling units, which is rounded down to six (6) dwelling units.
Section 2: Chapter 21.32 (Density Bonus) of Title 21 (Interpretation of Implementation
Plan Provisions) the NBMC is hereby added, which shall read as follows:
Chapter 21.32
Density Bonus
Sections:
21.32.010 Purpose.
21.32.021 Definitions.
21.32.030 Eligibility for Density Bonus and Incentives.
21.32.040 General Requirements.
21.32.050 Allowed Density Bonuses.
21.32.060 Parking Requirements in Density Bonus Projects.
21.32.070 Allowed Incentives or Concessions.
21.32.080 Waivers and Reductions of Development Standards.
21.32.090 Incentives for Housing with Child Care Facilities.
21.32.100 Condominium Conversions.
21.32.110 Design and Distribution of Affordable Units.
21.32.121 Replacement Units.
21.32.130 Continued Availability.
21.32.140 Occupancy and Resale of Ownership Units.
21.32.150 Approval Process.
21.32.160 Affordable Housing Agreement.
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21.32.010 Purpose.
The purpose of this chapter is to provide a means for granting density bonuses and incentives
in compliance with Government Code Sections 65915 through 65918 as the same may be
amended from time to time. This chapter provides regulations for considering density bonus
and incentive requests for the development of housing that is affordable to lower-, low-, and
moderate-income households, foster youth, disabled veterans, homeless persons, lower-
income students, senior citizens, and childcare.
21.32.020 Definitions.
As used in this chapter, the following words shall have the following meanings:
A. “Affordable Housing” means housing for which the allowable housing expenses paid by a
qualifying household shall not exceed a specified fraction of the county median income,
adjusted for household size. This includes housing designated for extremely low-, very low,
low-, and moderate-income households.
B. “Childcare Facility” means a child day care facility, other than a family day care home,
including, but not limited to, infant centers, preschools, extended day care facilities, and
school-age childcare center. “Childcare facility” does not include public or private primary
or secondary education facilities.
C. “Condominium Conversion” means the conversion of apartments, or other rental units, into
ownership property that consist of an undivided interest in common in a portion of real
property coupled with a separate interest within the boundaries of the dwelling unit.
D. “Density Bonus” means a density increase over the maximum allowable residential density
under applicable zoning and Land Use Element of the General Plan as of the date of
application.
E. “Development Standard” means a site or construction condition, including, but not limited
to, a height limitation, setback requirement, floor area ratio, an onsite open-space
requirement, or a parking ratio that applies to a housing development pursuant to any
ordinance, general plan policy, specific plan, or other local condition, law, policy, resolution,
or regulation. Development standard shall not mean an impact fee, inclusionary housing
requirement, or dedication of land.
F. “Disabled Veteran” means any veteran who is currently declared by the United States
Veterans Administration to be ten (10) percent or more disabled as a result of service in the
armed forces. Proof of such disability shall be deemed conclusive if it is of record in the
United States Veterans Administration.
G. “Equivalent Financial Value” means an incentive that would result in a reduction in cost to
the developer/property owner based upon the land cost per dwelling unit and shall be
calculated based upon the difference in the value of the land with and without the density
bonus.
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H. “Equivalent Size” means that the replacement units specified in Section 21.32.120 contain
at least the same total number of bedrooms as the units being replaced.
I. “Foster Youth” means a person in California whose dependency was established or
continued by a court of competent jurisdiction, including a tribal court, on or after the youth's
13th birthday and who is no older than 25 years of age at the commencement of the
academic year.
J. “Homeless Person” shall have the same meaning as that phrase is defined in Section 11302
of the federal McKinney-Vento Homeless Assistance Act (42U.S.C. Ch. 119).
K. “Housing Development” means a development project for five (5) or more residential
dwelling units, including mixed-use developments, subdivisions, or common interest
development. A “housing development” may consist of residential units, unimproved
residential lots, a project to substantially rehabilitate and convert an existing commercial
building to residential use, or the substantial rehabilitation of an existing multifamily dwelling
where the result of the rehabilitation would result in a net increase in available residential
units. For purposes of calculating a density bonus, the residential units shall be on
contiguous sites that are the subject of one (1) development application but may include
more than one subdivision map.
L. “Lower Income Student” means a student who has a household income and asset level that
does not exceed the level for Cal Grant A or Cal Grant B award recipients as set forth
Education Code Section 69432.7(k)(1). The eligibility of a student to occupy a unit for lower
income students under this section shall be verified by an affidavit, award letter, or letter of
eligibility provided by the institution of higher education in which the student is enrolled or
by the California Student Aid Commission that the student receives or is eligible for financial
aid, including an institutional grant or fee waiver from the college or university, the California
Student Aid Commission, or the federal government.
M. “Major Transit Stop” means a site containing an existing rail transit station or the intersection
of two (2) or more major bus routes with a frequency of service interval of fifteen (15)
minutes or less at the intersection of the two (2) routes during both the morning and
afternoon peak commute hours.
N. “Natural or Constructed Impediments” means a hindrance or obstruction that prevents
pedestrian or bicycle access to a major transit stop. Natural or constructed impediments
include, but are not limited to, freeways, rivers, mountains, harbors, and bodies of water,
but does not include residential structures, shopping centers, parking lots, or rails used for
transit.
O. “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 the application was deemed complete. The following
shall not constitute a specific, adverse impact upon the public health or safety: (1)
inconsistency with the zoning ordinance or general plan land use designation, or (2) the
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eligibility to claim a welfare exemption under subdivision (g) of Section 214 of the Revenue
and Taxation Code.
P. “Transitional Foster Youth” means a person whose dependency was established or
continued by the court on or after the youth’s 16th birthday and who is no older than 25
years of age at the commencement of the academic year.
Q. “Unobstructed Access” means a major transit stop that the income qualified resident of the
housing development is able to walk or bike to from the residence without encountering
natural or constructed impediments, which include, but are not limited to, freeways, rivers,
mountains, harbors and other bodies of water, but does not include residential structures,
shopping centers, parking lots, or rails used for transit with legal pedestrian access through
the property.
21.32.025 Costal Act Consistency
A. California Government Code Section 69515(m) provides that density bonus law shall not
be construed to supersede or in any way alter or lessen the effect or application of the
California Coastal Act of 1976.
B. A requested density bonus and any requested incentive, concession, waiver, modification,
or modified parking standard shall comply with all applicable standards and use regulations
of the certified Local Coastal Program Implementation Plan, with the exception of the
development standards waived, reduced, or modified through density bonus provisions. In
no case shall the coastal resource protection development regulations of Sections
21.28.040 (Bluff (B) Overlay District), 21.28.050 (Canyon (C) Overlay District),
21.28.015(D)(Waterfront Development), 21.30.015(E)(2) (Development in Shoreline
Hazardous Areas) and 21.30.100 (Scenic and Visual Quality Protection), or Chapters
21.30A (Public Access and Recreation) Chapter 21.30B (Habitat Protection) be waived,
reduced, or modified.
21.32.030 Eligibility for Density Bonus and Incentives.
In order to be eligible for a density bonus, incentive(s) or concession(s), or waiver or reduction
of development standard(s) as provided by this chapter, a housing development or
condominium conversion shall comply with the following requirements and satisfy all other
applicable provisions of this Local Coastal Program Implementation Plan, except as otherwise
provided by this Chapter.
A. Eligibility Requirements. A housing development shall include only one (1) of the following:
1. A minimum of five (5) percent of the total number of units of a housing development as
restricted and affordable to very low-income households.
2. A minimum of ten (10) percent of the total number of units of a housing development as
restricted and affordable to low-income households.
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3.A minimum of ten (10) percent of the total units in a for-sale housing development as
restricted and affordable to moderate-income households provided that all units in the
housing development are offered to the public for purchase.
4.One hundred (100) percent of all units in a housing development, exclusive of a
manager’s unit or units, as restricted and affordable to lower-income households, except
that no more than twenty (20) percent of the units in the development, including total
units and density bonus units, may be affordable to moderate-income households.
5.A minimum of ten (10) percent of the total units of a housing development project for
transitional foster youth, disabled veterans, or homeless persons provided at the same
affordability level as very low-income units.
6.A minimum of twenty (20) percent of the total units of a housing development are
affordable to lower-income college students.
7.A condominium conversion project where either thirty-three (33) percent of the units
converted are affordable to low- or moderate-income households, or fifteen (15) percent
of the units converted are affordable to very low- or extremely low-income households.
8.A senior citizen housing development as defined in Civil Code Sections 51.3 and 51.12
that has at least thirty-five (35) dwelling units or a mobile home park that limits residency
based on age requirements for housing older persons in compliance with Civil Code
Sections 798.76 or 799.5.
9.The applicant for a housing development project donates at least one (1) acre of land to
the City of Newport Beach for very low-income units, provided the land has the
appropriate general plan designation, zoning, permits and approvals, and access to
public facilities needed for such housing.
B.Housing Development Not Eligible for a Density Bonus, Concession, Incentive, or Waiver.
A housing development shall not be eligible for a density bonus, or any incentive,
concession, or waiver of a development standard under this Chapter on a property
containing existing affordable housing unless:
1.The housing development replaces the existing affordable units in accordance with all
of the requirements set forth in Section 21.32.120; and
2.The housing development, inclusive of the units replaced pursuant to this paragraph,
contains affordable units at least one (1) of the percentage levels set forth in Section
21.32.030(A).
21.32.040 General Requirements.
A.Fractional Units. The calculation of a density bonus in compliance with this section that
results in fractional units, including base density and bonus density, shall be rounded up to
the next whole number.
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B. Mixed Income Development. If a housing development qualifies for a density bonus under
more than one (1) income category; as senior housing; or as housing intended to serve
transitional foster youth, disabled veterans, or homeless persons; the applicant shall select
only one (1) of the above categories in the application. Density bonuses from more than
one (1) category may not be combined.
C. General Plan & Zoning Consistency. The granting of a density bonus, in and of itself, shall
not be interpreted as requiring a General Plan amendment, Zoning Map amendment, or
other discretionary approval.
D. Financial Incentives. The provisions of this Chapter shall not be interpreted to require or
limit the City from providing direct financial incentives, including the provision of publicly
owned land or the waiver of fees or dedication requirements.
E. Increased Density Limit. A housing development shall not exceed the cumulative total of
base units allowed by the underlying zone and the bonus density units allowed by Section
21.32.050. Incentives, concessions, or development standard waivers shall not be used to
increase density.
F. Reduced Density. An applicant for a Density Bonus may elect to provide a lesser
percentage of density increase than what is allowed authorized by Section 21.32.050
including, but not limited to, no increase in density, but shall remain eligible for concessions
or incentives, waivers of development standards, and eligible parking requirements
provided the project meets the eligibility requirements of this Section.
21.32.050 Allowed Density Bonuses.
A housing development that complies with one (1) of the eligibility levels in Section 21.32.030
is entitled to a density bonus as follows, unless a lesser percentage is proposed by the
applicant.
A. Density Bonus for Very Low, Low, and Moderate-Income Households. A housing
development that is eligible for a density bonus pursuant to Section 21.32.030(A)(1) through
Section 21.32.030(A)(4) is entitled to a density bonus calculated as follows:
TABLE 21.32-1
VERY LOW, LOW, AND MODERATE-
Density Bonus Percentage
Percentage of
Base
Units Proposed
Very Low Income Low Income Moderate Income
5% 20% - -
6% 22.5% - -
7% 25% - -
8% 27.5% - -
9% 30% - -
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10% 32.5% 20% 5%
11% 35% 21.5% 6%
12% 38.75% 23% 7%
13% 42.5% 24.5% 8%
14% 46.25% 26% 9%
15% 50% 27.5% 10%
16% 50% 29% 11%
17% 50% 30.5% 12%
18% 50% 32% 13%
19% 50% 33.5% 14%
20% 50% 35% 15%
21% 50% 38.75% 16%
22% 50% 42.5% 17%
23% 50% 46.25% 18%
24% 50% 50% 19%
25% 50% 50% 20%
26% 50% 50% 21%
27% 50% 50% 22%
28% 50% 50% 23%
29% 50% 50% 24%
30% 50% 50% 25%
31% 50% 50% 26%
32% 50% 50% 27%
33% 50% 50% 28%
34% 50% 50% 29%
35% 50% 50% 30%
36% 50% 50% 31%
37% 50% 50% 32%
38% 50% 50% 33%
39% 50% 50% 34%
40% 50% 50% 35%
41% 50% 50% 38.75%
42% 50% 50% 42.5%
43% 50% 50% 46.25%
44% 50% 50% 50%
100% 80% 80% 80%
Notwithstanding the foregoing, a cap on density will not apply if both of the following conditions
are met:
1. One hundred (100) percent of the units in a housing development exclusive of
manager’s units, are restricted and affordable to very-low and low-income households,
except that no more than twenty (20) percent of the total units (including density bonus
units) in the housing development are restricted and affordable to moderate-income
households.
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2. The housing development is located within one-half mile of a major transit stop with
unobstructed access.
B. Density Bonus for Transitional Foster Youth, Disabled Veterans, or Homeless Persons. A
housing development that is eligible for a density bonus at the level set forth in Section
21.32.030(A)(5) shall be entitled to a density bonus of twenty (20) percent.
C. Density Bonus for Lower Income College Students. A student housing development that is
eligible for a density bonus at the level set forth in Section 21.32.030(A)(6) shall be entitled
to a density bonus of thirty-five (35) percent.
1. All units in the student housing development will be used exclusively for undergraduate,
graduate, or professional students enrolled full-time at an institution of higher education
accredited by the Western Association of Schools and Colleges or the Accrediting
Commission for Community and Junior Colleges.
2. The applicant or property owner shall provide evidence to the City that the housing
development shall be subject to an operating agreement or lease with one (1) or more
institution of higher education that all units shall be exclusively occupied by the students
of the institution(s).
3. The rent for affordable units shall be calculated at thirty (30) percent of sixty-five (65)
percent of the area median income for a single-room occupancy unit.
4. Priority for the affordable units shall be given to lower income students experiencing
homelessness. A homeless service provider, as defined in paragraph (3) of subdivision
(e) of Section 103577 of the Health and Safety Code, or institution of higher education
that has knowledge of a person’s homeless status may verify a person’s status as
homeless for purposes of this subsection.
5. For purposes of calculating a density bonus granted pursuant to this section, the term
“unit” shall mean one (1) rental bed and its pro rata share of associated common area
facilities.
D. Density Bonus for Condominium Conversion. A condominium conversion that is eligible for
a density bonus pursuant to Section 21.32.030(A)(7) shall be entitled to a density bonus of
twenty-five (25) percent provided the condominium conversion meets all of the
requirements in Section 20.32.100.
E. Density Bonus for Senior Housing. A senior housing development that is eligible for a
density bonus pursuant to Section 21.32.030(A)(8) shall be entitled to a density bonus of
twenty (20) percent.
F. Density Bonus for donating land for very low-income units. A housing development that
includes the donation of land for the development of very low-income housing pursuant to
Section 21.32.030(A)(9) is entitled to a density bonus calculated as follows:
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TABLE 21.32-2
LAND DEDICATED TO ACCOMMODATE VERY LOW-INCOME
Percentage of
Base
Units Proposed
Density Bonus
Percentage
10% 15%
11% 16%
12% 17%
13% 18%
14% 19%
15% 20%
16% 21%
17% 22%
18% 23%
19% 24%
20% 25%
21% 26%
22% 27%
23% 28%
24% 29%
25% 30%
26% 31%
27% 32%
28% 33%
29% 34%
30% 35%
1. Any increase authorized by this subsection may be approved in addition to any increase
in density allowed by Section 21.32.030 up to a maximum combined density increase of
thirty-five (35) percent.
2. The donated land shall be the greater of:
a. One (1) acre;
b. Sufficient square-footage or acreage to permit development of the percentage of
base units proposed; or
c. Sufficient square-footage or acreage to permit development of forty (40) units
under the existing general plan and zoning designation.
3. The existing general plan and zoning designation of the donated land shall is zoned to
accommodate at least 30 dwelling units per acre and is served by adequate public
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facilities and infrastructure or will be served by adequate public facilities and
infrastructure by the housing development.
4. The land shall be donated and transferred to the City or a housing developer that is
approved by the City. The applicant shall donate and transfer the land no later than the
date of approval of the final subdivision map, or issuance of building permits for a
housing development where no subdivision is required.
5. The City shall not approve the final subdivision map or issue building permits for the
housing development unless and until all permits, other than building permits, for the
development of very low-income housing have been issued for the donated and
transferred land.
6. The donated and transferred land shall be within the boundary of the housing
development, or upon approval of the reviewing authority, within one-quarter (1/4) mile
of the boundary of the housing development.
7. The source of funding for the development of very low-income housing on the donated
and transferred land shall be identified not later than the date of approval of the final
subdivision map or issuance of building permits for the housing development.
8. The donated and transferred land and the affordable units shall be subject to a deed
restriction recorded on the property at the time of transfer ensuring continued
affordability of the units consistent with Section 21.32.130.
21.32.060 Parking Requirements in Density Bonus Projects.
A. Applicability. For a housing development that meets one (1) of the eligibility levels in Section
21.32.030, the applicant may request application of the parking requirements set forth
herein. An applicant may request additional parking incentives beyond those provided in
this section in compliance with Sections 21.32.070 and 21.32.080.
B. Number of Parking Spaces Required.
1. Parking Ratios. At the request of the applicant, the following minimum parking ratios
apply to the housing development:
Dwelling Unit Size Onsite Parking per
Unit
Studio to 1 Bedroom 1 space
2 to 3 Bedrooms 1.5 spaces
4 or more Bedrooms 2.5 spaces
2. Within One-Half Mile (½) of Major Transit Stop. Notwithstanding subsection B(1), if a
housing development provides at least twenty (20) percent low-income units or eleven
(11) percent very low-income units and is located within one-half (½) mile of a major
transit stop with unobstructed access; then upon the request of the developer, the City
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may not impose a vehicular parking ratio, inclusive of handicapped and guest parking,
that exceeds 0.5 spaces per bedroom.
3. Zero Parking. Notwithstanding subsection B(1), if a housing development consists
solely of rental units affordable to lower income families; then upon the request of the
developer, the City may not impose a vehicular parking ratio, inclusive of handicapped
and guest parking, if either of the following criteria are met:
a. The housing development is located within one-half (½) mile of a major transit
stop with unobstructed access from the housing development;
b. The housing development is a for-rent housing development for individuals who
are 62 years of age or older that meet the definition in Sections 51.2 and 51.3 of
the Civil Code and the housing development has either paratransit service or
unobstructed access within one-half (½) mile to a fixed bus route that operates
at least eight (8) times per day; or
c. The housing development is either a special needs housing development, as
defined in Section 51312 of the Health and Safety Code, or supportive housing
development as defined in Section 50675.14 of the Health and Safety Code, and
the housing development has either paratransit service or unobstructed access
within one-half mile of a fixed bus route that operates at least eight (8) times per
day.
4. Notwithstanding paragraphs (2) and (3), if the City or an independent consultant has
conducted an areawide or jurisdiction-wide parking study in the last seven (7) years,
then the City may impose a higher vehicular parking ratio not to exceed the ratio
described in paragraph (1), based upon substantial evidence found in the parking
study, that includes, but is not limited to, an analysis of parking availability, differing
levels of transit access, walkability access to transit services, the potential for shared
parking, the effect of parking requirements on the cost of market-rate and subsidized
developments, and the lower rates of car ownership for low-income and very low
income individuals, including seniors and special needs individuals.
C. Location of Parking. For purposes of this section, a housing development may provide on-
site parking through uncovered or tandem parking, but not through on-street parking.
D. Rounding of Partial Parking Spaces. If the total number of parking spaces required for a
housing development is other than a whole number, the number shall be rounded up to the
next whole number.
21.32.070 Allowed Incentives or Concessions.
A. Applicant Request and City Approval. The applicant shall include any request for
incentive(s) or concession(s) listed in subsection (C) of this section concurrently with the
application for project approval. The applicant shall provide documentation establishing that
an incentive or concession is necessary to make the housing units economically feasible.
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When an applicant makes a request for an incentive or concession, the review authority
shall grant the request unless one or more of the following findings is made, based on
substantial evidence:
1. The incentive or concession is not required in order to provide affordable housing
costs or for rents for the targeted units to be set as specified in Section 21.32.130(B);
2. The incentive or concession would have a specific adverse impact upon public health
and safety, or on any real property listed in the California Register of Historical
Resources and for which there is no feasible method to satisfactorily mitigate or avoid
the specific adverse impact without rendering the development unaffordable to low-
and moderate-income households; or
3. The incentive would be contrary to state or federal law.
B. Number of Incentives or Concessions. Except as provided in subsection (A) of this section,
the review authority shall grant the following number of incentives or concessions:
1. One (1) incentive or concession for a housing development that includes at least ten
(10) percent of the total units for low-income households, at least five (5) percent of the
total units for very low-income households, at least twenty (20) of the total units for low-
income students in a student housing development, or at least ten (10) percent of the
total units for persons and families of moderate income in a for-sale housing
development.
2. Two (2) incentives or concessions for a housing development that includes at least
seventeen (17) percent of the total units for low-income households, at least ten (10)
percent of the total units for very low-income households, or at least twenty (20) percent
of the total units for persons and families of moderate income in a for-sale housing
development.
3. Three (3) incentives or concessions for a housing development that includes at least
twenty-four (24) percent of the total units for low-income households, at least fifteen (15)
percent of the total units for very low-income households, or at least thirty (30) percent
of the total units for persons and families of moderate income in a for-sale housing
development.
4. Four (4) incentives or concession for projects that meet the criteria of Section
21.32.030(A)(4). If the housing development is located within one-half (½) mile of a
major transit stop with unobstructed access, the housing development is eligible for a
height increase of up to three (3) additional stories, or thirty-three (33) feet.
C. Type of Incentive or Concession. For the purposes of this chapter, “incentive” or
“concession” mean any of the following:
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1. A reduction in the development standards, including but not limited to, a height limitation,
a setback requirement, a floor area ratio, an open space requirement, or parking ratio
(in excess of the provisions identified in Section 21.32.060), or architectural design
requirements that exceed the minimum building standards approved by the California
Building Standards Commission in compliance with Health and Safety Code Section
18901 et seq., that would otherwise be required, that results in identifiable, financially
sufficient, and actual cost reductions;
2. A mixed-use project in conjunction with the housing development, if the nonresidential
portion of the mixed-use project will reduce the cost of the housing development; is
compatible with the residential portion of the housing development; and is compatible
with adjacent existing or planned development;
3. A reduction or waiver of any City imposed fee or dedication of land. Approval of a fee
reduction or waiver of fee and/or dedication of land shall be at the sole discretion of the
City Council and is not required to be approved; and/or
4. Other regulatory incentives that will result in identifiable, financially sufficient, and actual
cost reductions.
21.32.080 Waivers or Reductions of Development Standards.
In addition to requesting an incentive or concession, an applicant for a density bonus may also
submit a proposal to the City to waive or reduce an unlimited number of development standards
that would otherwise preclude or inhibit construction of the housing development at the
densities or with the incentives permitted by this Chapter.
A. When an applicant makes a request for a waiver, the review authority shall grant the request
unless, based on substantial evidence, any of the following findings are made:
1. The waiver or reduction of development standards would have a specific adverse impact
upon public health or safety, and for which there is no feasible method to satisfactorily
mitigate or avoid the specific adverse impact.
2. The waiver or reduction of development standards would have an adverse impact on
any real property listed in the California Register of Historical Resources.
3. The waiver or reduction of development standards would be contrary to state or federal
law.
B. Notwithstanding Section 21.32.080(A), a housing development that is eligible for no cap on
density pursuant Section 21.32.050(A) shall only be eligible for a waiver or reduction of
development standards as provided in Section 21.32.070(B)(4), unless the review authority
grants additional waivers or reductions.
21.32.090 Incentives for Housing with Child Care Facilities.
A housing development that complies with the income requirements of Section 21.32.030(A)
and also includes a childcare facility, other than a large or small family day care home, that will
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be located on the same site as the development, shall be eligible for the following incentives in
addition to the incentives provided for the affordable housing.
A. Incentives. The City shall grant a housing development that includes a childcare facility
either of the following incentives:
1. An amount of residential floor area equal to or greater than the floor area of the childcare
facility; or
2. An incentive that contributes to the economic feasibility of the childcare facility (e.g.,
reduction of development standards, reduced parking requirements, monetary
contribution) as provided in Section 21.32.070(C).
B. Requirements to Qualify for Incentives. The City shall require, as a condition of approving
the housing development, that:
1. The childcare facility shall remain in operation for a period of time that is as long as or
longer than the period of time during which the density bonus units are required to
remain affordable in compliance with Section 21.32.130; and
2. Of the children who attend the childcare facility, the children of very low-income
households, low-income households, or families of moderate income shall equal a
percentage that is equal to or greater than the percentage of dwelling units that are
required for very low-income households, lower-income households, or families of
moderate income in compliance with Section 21.30.030(A).
C. Incentive Not Required. The City shall not be required to provide a density bonus for a
childcare facility if it finds, based upon substantial evidence, that the community has
adequate childcare facilities.
21.32.100 Condominium Conversions.
A. Density Bonus. When an applicant proposes to convert apartments to condominiums, which
meet the eligibility level in Section 21.32.030(A)(7), the City shall grant either a density
bonus of up to twenty-five (25) percent pursuant to Section 21.32.050(D) to create additional
units on the project site or other incentive of equivalent financial value provided:
1. The applicant agrees to pay for the reasonably necessary administrative costs,
including, but is not limited to, staff costs, consultant fees, photocopy costs, and mailing
fees, incurred by the City; and
2. The City places such reasonable conditions on the granting of a density bonus or other
incentives of equivalent financial value as it finds appropriate, including, but not limited
to, conditions which assure continued affordability of units to subsequent purchasers
who are persons and families of very low-, low- and moderate-income households.
B. Replacement Units. All units within the condominium conversion shall meet the replacement
requirements in Section 21.32.121.
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C. Ineligible Requests. Apartments which are proposed for conversion to condominiums shall
be ineligible for a density bonus or other incentive under the section if the apartments were
previously granted a density bonus, concession, incentives, or waiver or reduction of
development standards.
D. Preapplication Process. An applicant may submit to the City a preliminary application for
the condominium conversion on a form provided by the Director prior to the submittal of an
application under Chapters 19.08 and 19.64. Within ninety (90) days of receipt of the
preliminary application, the City shall notify the applicant in writing whether the application
is eligible for a condominium conversion pursuant to this section.
E. Approval. An application for condominium conversion shall meet the requirements set forth
in Chapter 19.64. Nothing in this section shall be construed to require the City to approve
an application for a condominium conversion.
21.32.110 Design and Distribution of Affordable Units.
Affordable units shall be designed and distributed within the housing development as follows:
A. Number of Bedrooms. Affordable units shall reflect the range of numbers of bedrooms
provided in the residential development project as a whole;
B. Comparable Quality and Facilities. Affordable units shall be comparable in the facilities
provided (e.g., laundry, recreation, etc.) and in the quality of construction and exterior
design to the market-rate units;
C. Access. In mixed-income multi-unit structures, the occupants of the affordable housing units
shall have the same access to common entrances and any common areas including parking
areas in that structure as the occupants of the market-rate housing units;
D. Size. Affordable units may be smaller and have different interior finishes and features than
the market-rate units; and
E. Location. Affordable units shall be distributed within the residential development, unless
clustering is allowed by the review authority. Notwithstanding, in a mixed-income multi-unit
structure, affordable units shall not be isolated to a specific floor or an area of a specific
floor.
21.32.120 Replacement Units.
An application for a density bonus on any property with existing rental dwelling units or rental
dwelling units that were vacated or demolished within the five (5) years preceding the
application; and are/were subject to a recorded covenant that restricts rents to very low- or low-
income households, or are/were occupied by very low- or low-income household shall be
subject to the following:
A. Occupied Units. For rental dwelling units that are occupied on the date of the application,
the housing development shall provide at least the same number of affordable units of
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equivalent size to be made available at affordable rent or affordable housing cost to, and
occupied by, persons or families in the same or lower income category as those households
in occupancy.
B. Vacant or Demolished Units. For rental dwelling units that have been vacated or demolished
within the five (5) years preceding the application, the housing development shall provide
at least the same number of affordable units of equivalent size as existed at the highpoint
of those units in the five (5) years preceding the application to be made available at
affordable rent or affordable housing cost to, and occupied by, persons and families in the
same or lower income category as those persons and families in occupancy at that time.
C. Unknown Household Income. If the income of the existing occupants or occupants within
the past five (5) years is unknown to the City or the applicant, it shall be rebuttably presumed
that the rental dwellings units were occupied by low-income and very low-income renter
households as determined by the most recently available data from the United States
Department of Housing and Urban Development’s Comprehensive Housing Affordability
Strategy database.
21.32.130 Continued Availability.
The units that qualified the housing development for a density bonus and other incentives shall
continue to be available as affordable and/or senior units in compliance with the following
requirements:
A. Duration of Availability. The applicant shall agree to, and the City shall ensure the continued
availability of the units that qualified the housing development for a density bonus and other
incentives for at least fifty-five (55) years, or a longer time if required by the construction or
mortgage financing assistance program, mortgage insurance program, or rental subsidy
program.
B. Affordable Costs. The rents and owner-occupied costs charged for the housing units shall
not exceed the following amounts during the period of continued availability required by this
section:
1. Rental Units. Rents for density bonus units shall be set at an affordable rent as defined
in Health and Safety Code Section 50053; and
2. Owner-Occupied Units. Owner-occupied units shall be available at an affordable
housing cost as defined in Health and Safety Code Section 50052.5.
21.32.140 Occupancy and Resale of Ownership Units.
A housing development that includes for-sale units that are restricted and affordable to
moderate-income households shall limit the occupancy and resale of the units as follows.
A. Occupancy. The initial occupants of a for-sale unit, which qualified the applicant for the
award of the density bonus, meets either of the following conditions:
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1. The unit is initially occupied by a person or family of very low, low, or moderate income,
as required, and it is offered at an affordable housing cost, as that cost is defined in
Section 50052.5 of the Health and Safety Code and is subject to an equity sharing
agreement.
2. The unit is purchased by a qualified nonprofit housing corporation pursuant a contract
that is recorded to the property, and all of the following are satisfied:
a. The nonprofit housing corporation is organized pursuant to Internal Revenue Code
Section 501(c)(3) and has received a welfare exemption under Revenue and
Taxation Code Section 214.15 for properties intended to be sold to low-income
families who participate in a special no-interest loan program;
b. The contract restricts the use of the land for at least thirty (30) years to owner-
occupied housing that is available at an affordable housing cost;
c. The contract includes a deed of trust on the property in favor of the nonprofit
corporation to ensure compliance with the terms of the program, which has no value
unless the owner fails to comply with the covenants and restrictions of the terms of
the home sale;
d. The City Attorney finds that the long-term deed restrictions in the contract serve a
public purpose;
e. A repurchase option that requires a subsequent purchaser of the property that
desires to sell or convey the property to offer the qualified nonprofit corporation the
right to repurchase the property prior to selling or conveying that property to any
other purchaser; and
f. Affordability restrictions on the sale and conveyance of the property that ensure that
the property will be preserved for lower income housing for at least forty-five (45)
years for owner-occupied housing units and will be sold or resold only to persons or
families of very low, low, or moderate income.
B. Resale. As part of the affordable housing agreement required pursuant to Section
21.32.160, the applicant shall enter into an equity sharing agreement with the City for the
resale of affordable common interest units, unless it would be in conflict with the
requirements of another public funding source or law. In lieu of an equity sharing agreement,
the housing project could sell the units to a nonprofit housing corporation pursuant to
Section 21.32.140(A)(2). The following requirements apply to the equity sharing agreement:
1. Upon resale, the seller of the unit shall retain the value of any improvements, the down
payment, and the seller’s proportionate share of appreciation; and
2. The City shall recapture any initial subsidy and its proportionate share of appreciation,
which shall then be used within five (5) years for any of the purposes described in Health
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and Safety Code Section 33334.2(e) that promote home ownership. For the purposes
of this section:
a. The City’s initial subsidy shall be equal to the fair market value of the home at the
time of initial sale, minus the initial sale price, plus the amount of any down payment
assistance or mortgage assistance. If upon resale the market value is lower than the
initial market value, then the value at the time of the resale shall be used as the initial
market value;
b. The City’s proportionate share of appreciation shall be equal to the ratio of the initial
subsidy to the fair market value of the home at the time of initial sale; and
c. The initial subsidy shall include any incentives granted by the City and shall be equal
to the monetary equivalent of the incentives.
21.32.150 Approval Process.
An applicant requesting a density bonus, incentive, concession, or waiver pursuant to this
chapter shall require approval of an Affordable Housing Implementation Plan pursuant to
Sections 20.50.030 and 20.52.015.
21.32.160 Affordable Housing Agreement.
The applicant approved for a density bonus, concession, incentive, or waiver under this
Chapter shall agree to construct, operate and maintain the affordable units in accordance with
an affordable housing agreement. The affordable housing agreement shall be executed in a
recordable form prior to the issuance of a building permit for any portion of a housing
development subject to the requirements of this Chapter. The affordable housing agreement
shall be binding upon all future owners and successors in interest.
A. Review. The terms of the affordable housing agreement shall be reviewed and revised as
appropriate by the Director and City Attorney.
B. Fees. The City may establish fees associated with the setting up and monitoring of the
affordable units.
C. Contents. The affordable housing agreement shall include at least the following:
1. Identification of Affordable Units. Affordable units shall be identified by address and legal
description, type (floor area, number of bedrooms/baths, unit size, etc.), and designated
household income category. The affordable housing agreement shall also identify the
total number of affordable units and total number of units approved for the housing
development.
2. Term of Affordability. Unless specified elsewhere in this Chapter a minimum term of fifty-
five (55) years of the specified affordability shall be required. Such reservation period
shall begin on the date a certificate of occupancy is granted for the affordable units.
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3. Maximum Allowable Rent or Sales Price.
a. Rental Housing Developments. In the case of rental housing developments, the
affordable housing agreement shall provide for the following conditions governing
the use of the affordable housing units during the use restriction period:
i. The rules and procedures for qualifying tenants, establishing affordable rent,
filling vacancies, and maintaining the affordable units for qualified tenants.
ii. Provisions requiring owners to verify tenant incomes and maintain books and
records to demonstrate compliance with this chapter.
iii. Provisions requiring owners to submit an annual report to the City, which includes
the name, address and income of each person occupying each affordable unit,
and which identifies the bedroom size and monthly rent or cost of each affordable
unit.
iv. Determination of Rent. A maximum rent schedule shall be submitted to the City
prior to the issuance of an occupancy permit for the affordable units, and updated
annually on the anniversary date of occupancy.
v. Deposit Amount. Total move-in costs for eligible tenants occupying affordable
units shall be limited to first month's rent plus a security/cleaning deposit not to
exceed one month's rent.
vi. Upward Mobility Allowance. When a tenant occupying an affordable unit no
longer qualifies under the income requirements, verified through the monitoring
program required as part of the affordable housing agreement, that tenant may
then be charged market rate rent. If this occurs, any currently vacant unit of
similar type to the affordable unit in question shall then be designated as an
affordable unit, and the owner shall immediately attempt to secure tenants in
accordance with this chapter. The owner is required to maintain at all times during
the use restriction the minimum number of affordable units identified in the
affordable housing agreement.
vii. Subletting of Affordable Units. No subletting or short-term occupancy of
designated affordable units shall be allowed.
b. Ownership Projects. In the case of for-sale housing developments, as a condition of
approval of the housing development, the City shall require an affordable housing
agreement that includes the following conditions governing the initial sale and use of
affordable units during the applicable use period:
i. Affordable units shall, upon initial sale, be sold to eligible very low- and low-income
households at an affordable sales price and housing cost, or to qualifying
residents in the case of a senior citizen housing development.
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ii. Affordable units shall be initially owner-occupied by eligible very low- or low-
income households, or by qualifying residents in the case of a senior citizen
housing development.
iii. The initial purchaser of each affordable housing unit shall execute an instrument
or agreement approved by the City restricting the sale of the affordable housing
unit in accordance with this chapter during the applicable use restriction period.
Such instrument or agreement shall be recorded against the parcel containing the
affordable housing unit and shall contain such provisions as the City may require
to ensure continued compliance with this chapter and State Density Bonus Law.
iv. Sale Clause. The affordable housing agreement shall stipulate that, when the
terms of affordability expire on an affordable unit, the City and/or a non-profit
housing organization shall have a first right of purchase option sixty (60) days prior
to the affordable unit being advertised on the market.
v. Rental of For-Sale Units. Rental of affordable units shall not be allowed.
vi. Monitoring of Compliance to Agreement. A monitoring program shall be required,
specifying the party responsible for certifying tenant incomes and sales price,
maintaining the required number of affordable units and each affordable unit's
property, and marketing and filling unit vacancies.
c. Equity Sharing Agreements. When an equity sharing agreement is required by this
chapter, the affordable housing agreement shall specify the equity sharing
agreement comply with Section 21.32.140.
4. Remedies. Description of remedies for breach of the affordable housing agreement by
either party (the City may identify tenants or qualified purchasers as third-party
beneficiaries under the agreement).
5. Description of Density Bonus. A description of the incentives and/or concessions, if any,
being provided by the City.
6. Schedule. A schedule for completion and occupancy of the affordable units.
7. Other Provisions. Other provisions to ensure implementation and compliance with this
chapter.
Section 3: Section 21.70.020 (Definitions of Specialized Terms and Phrases) of Title 21
(Local Coastal Program Implementation Plan) the NBMC is hereby amended to add the following
definitions with all other definitions to remain unchanged:
“Density bonus” See Section 21.32.020.
“Extremely low-income household” means persons and families whose income does not exceed
thirty (30) percent of the area median income for Orange County, as published by the California
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Department of Housing and Community Development, adjusted for family size and revised
annually.
“Low-income household” means persons and families whose income is greater than fifty (50)
percent but does not exceed eight (80) percent of the area median income for Orange County, as
published by the California Department of Housing and Community Development, adjusted for
family size and revised annually.
“Moderate-income household” means persons and families whose income is greater than eighty
(80) percent but does not exceed one hundred twenty (120) percent of the area median income
for Orange County, as published by the California Department of Housing and Community
Development, adjusted for family size and revised annually.
“Very low-income household” means persons and families whose income is greater than thirty
(30) percent but does not exceed fifty (50) percent of the area median income for Orange County,
as published by the California Department of Housing and Community Development, adjusted for
family size and revised annually.
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Attachment No. PC 3
State Density Bonus Law
(Government Code § 65915-65918)
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INTENTIONALLY BLANK PAGE70
State of California
GOVERNMENT CODE
Section 65915
65915. (a) (1) When an applicant seeks a density bonus for a housing development
within, or for the donation of land for housing within, the jurisdiction of a city, county,
or city and county, that local government shall comply with this section. A city,
county, or city and county shall adopt an ordinance that specifies how compliance
with this section will be implemented. Except as otherwise provided in subdivision
(s), failure to adopt an ordinance shall not relieve a city, county, or city and county
from complying with this section.
(2) A local government shall not condition the submission, review, or approval of
an application pursuant to this chapter on the preparation of an additional report or
study that is not otherwise required by state law, including this section. This
subdivision does not prohibit a local government from requiring an applicant to provide
reasonable documentation to establish eligibility for a requested density bonus,
incentives or concessions, as described in subdivision (d), waivers or reductions of
development standards, as described in subdivision (e), and parking ratios, as described
in subdivision (p).
(3) In order to provide for the expeditious processing of a density bonus application,
the local government shall do all of the following:
(A) Adopt procedures and timelines for processing a density bonus application.
(B) Provide a list of all documents and information required to be submitted with
the density bonus application in order for the density bonus application to be deemed
complete. This list shall be consistent with this chapter.
(C) Notify the applicant for a density bonus whether the application is complete
in a manner consistent with the timelines specified in Section 65943.
(D) (i) If the local government notifies the applicant that the application is deemed
complete pursuant to subparagraph (C), provide the applicant with a determination
as to the following matters:
(I) The amount of density bonus, calculated pursuant to subdivision (f), for which
the applicant is eligible.
(II) If the applicant requests a parking ratio pursuant to subdivision (p), the parking
ratio for which the applicant is eligible.
(III) If the applicant requests incentives or concessions pursuant to subdivision (d)
or waivers or reductions of development standards pursuant to subdivision (e), whether
the applicant has provided adequate information for the local government to make a
determination as to those incentives, concessions, or waivers or reductions of
development standards.
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(ii) Any determination required by this subparagraph shall be based on the
development project at the time the application is deemed complete. The local
government shall adjust the amount of density bonus and parking ratios awarded
pursuant to this section based on any changes to the project during the course of
development.
(b) (1) A city, county, or city and county shall grant one density bonus, the amount
of which shall be as specified in subdivision (f), and, if requested by the applicant
and consistent with the applicable requirements of this section, incentives or
concessions, as described in subdivision (d), waivers or reductions of development
standards, as described in subdivision (e), and parking ratios, as described in
subdivision (p), if an applicant for a housing development seeks and agrees to construct
a housing development, excluding any units permitted by the density bonus awarded
pursuant to this section, that will contain at least any one of the following:
(A) Ten percent of the total units of a housing development for rental or sale to
lower income households, as defined in Section 50079.5 of the Health and Safety
Code.
(B) Five percent of the total units of a housing development for rental or sale to
very low income households, as defined in Section 50105 of the Health and Safety
Code.
(C) A senior citizen housing development, as defined in Sections 51.3 and 51.12
of the Civil Code, or a mobilehome park that limits residency based on age
requirements for housing for older persons pursuant to Section 798.76 or 799.5 of the
Civil Code.
(D) Ten percent of the total dwelling units of a housing development are sold to
persons and families of moderate income, as defined in Section 50093 of the Health
and Safety Code, provided that all units in the development are offered to the public
for purchase.
(E) Ten percent of the total units of a housing development for transitional foster
youth, as defined in Section 66025.9 of the Education Code, disabled veterans, as
defined in Section 18541, or homeless persons, as defined in the federal
McKinney-Vento Homeless Assistance Act (42 U.S.C. Sec. 11301 et seq.). The units
described in this subparagraph shall be subject to a recorded affordability restriction
of 55 years and shall be provided at the same affordability level as very low income
units.
(F) (i) Twenty percent of the total units for lower income students in a student
housing development that meets the following requirements:
(I) All units in the student housing development will be used exclusively for
undergraduate, graduate, or professional students enrolled full time at an institution
of higher education accredited by the Western Association of Schools and Colleges
or the Accrediting Commission for Community and Junior Colleges. In order to be
eligible under this subclause, the developer shall, as a condition of receiving a
certificate of occupancy, provide evidence to the city, county, or city and county that
the developer has entered into an operating agreement or master lease with one or
more institutions of higher education for the institution or institutions to occupy all
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units of the student housing development with students from that institution or
institutions. An operating agreement or master lease entered into pursuant to this
subclause is not violated or breached if, in any subsequent year, there are not sufficient
students enrolled in an institution of higher education to fill all units in the student
housing development.
(II) The applicable 20-percent units will be used for lower income students.
(III) The rent provided in the applicable units of the development for lower income
students shall be calculated at 30 percent of 65 percent of the area median income for
a single-room occupancy unit type.
(IV) The development will provide priority for the applicable affordable units for
lower income students experiencing homelessness. A homeless service provider, as
defined in paragraph (3) of subdivision (e) of Section 103577 of the Health and Safety
Code, or institution of higher education that has knowledge of a person’s homeless
status may verify a person’s status as homeless for purposes of this subclause.
(ii) For purposes of calculating a density bonus granted pursuant to this
subparagraph, the term “unit” as used in this section means one rental bed and its pro
rata share of associated common area facilities. The units described in this
subparagraph shall be subject to a recorded affordability restriction of 55 years.
(G) One hundred percent of all units in the development, including total units and
density bonus units, but exclusive of a manager’s unit or units, are for lower income
households, as defined by Section 50079.5 of the Health and Safety Code, except that
up to 20 percent of the units in the development, including total units and density
bonus units, may be for moderate-income households, as defined in Section 50053
of the Health and Safety Code.
(2) For purposes of calculating the amount of the density bonus pursuant to
subdivision (f), an applicant who requests a density bonus pursuant to this subdivision
shall elect whether the bonus shall be awarded on the basis of subparagraph (A), (B),
(C), (D), (E), (F), or (G) of paragraph (1).
(c) (1) (A) An applicant shall agree to, and the city, county, or city and county
shall ensure, the continued affordability of all very low and low-income rental units
that qualified the applicant for the award of the density bonus for 55 years or a longer
period of time if required by the construction or mortgage financing assistance
program, mortgage insurance program, or rental subsidy program.
(B) (i) Except as otherwise provided in clause (ii), rents for the lower income
density bonus units shall be set at an affordable rent, as defined in Section 50053 of
the Health and Safety Code.
(ii) For housing developments meeting the criteria of subparagraph (G) of paragraph
(1) of subdivision (b), rents for all units in the development, including both base
density and density bonus units, shall be as follows:
(I) The rent for at least 20 percent of the units in the development shall be set at
an affordable rent, as defined in Section 50053 of the Health and Safety Code.
(II) The rent for the remaining units in the development shall be set at an amount
consistent with the maximum rent levels for a housing development that receives an
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allocation of state or federal low-income housing tax credits from the California Tax
Credit Allocation Committee.
(2) (A) An applicant shall agree to ensure, and the city, county, or city and county
shall ensure, that a for-sale unit that qualified the applicant for the award of the density
bonus meets either of the following conditions:
(i) The unit is initially occupied by a person or family of very low, low, or moderate
income, as required, and it is offered at an affordable housing cost, as that cost is
defined in Section 50052.5 of the Health and Safety Code and is subject to an equity
sharing agreement.
(ii) The unit is purchased by a qualified nonprofit housing corporation pursuant
to a recorded contract that satisfies all of the requirements specified in paragraph (10)
of subdivision (a) of Section 402.1 of the Revenue and Taxation Code and that includes
all of the following:
(I) A repurchase option that requires a subsequent purchaser of the property that
desires to resell or convey the property to offer the qualified nonprofit corporation
the right to repurchase the property prior to selling or conveying that property to any
other purchaser.
(II) An equity sharing agreement.
(III) Affordability restrictions on the sale and conveyance of the property that
ensure that the property will be preserved for lower income housing for at least 45
years for owner-occupied housing units and will be sold or resold only to persons or
families of very low, low, or moderate income, as defined in Section 50052.5 of the
Health and Safety Code.
(B) For purposes of this paragraph, a “qualified nonprofit housing corporation” is
a nonprofit housing corporation organized pursuant to Section 501(c)(3) of the Internal
Revenue Code that has received a welfare exemption under Section 214.15 of the
Revenue and Taxation Code for properties intended to be sold to low-income families
who participate in a special no-interest loan program.
(2) An applicant shall agree to, and the city, county, or city and county shall ensure
that, the initial occupant of all for-sale units that qualified the applicant for the award
of the density bonus are persons and families of very low, low, or moderate income,
as required, and that the units are offered at an affordable housing cost, as that cost
is defined in Section 50052.5 of the Health and Safety Code.
(C) The local government shall enforce an equity sharing agreement required
pursuant to clause (i) or (ii) of subparagraph (A), unless it is in conflict with the
requirements of another public funding source or law. The following apply to the
equity sharing agreement:
(i) Upon resale, the seller of the unit shall retain the value of any improvements,
the downpayment, and the seller’s proportionate share of appreciation.
(ii) Except as provided in clause (v), the local government shall recapture any
initial subsidy, as defined in clause (iii), and its proportionate share of appreciation,
as defined in clause (iv), which amount shall be used within five years for any of the
purposes described in subdivision (e) of Section 33334.2 of the Health and Safety
Code that promote home ownership.
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(iii) For purposes of this subdivision, the local government’s initial subsidy shall
be equal to the fair market value of the home at the time of initial sale minus the initial
sale price to the moderate-income household, plus the amount of any downpayment
assistance or mortgage assistance. If upon resale the market value is lower than the
initial market value, then the value at the time of the resale shall be used as the initial
market value.
(iv) For purposes of this subdivision, the local government’s proportionate share
of appreciation shall be equal to the ratio of the local government’s initial subsidy to
the fair market value of the home at the time of initial sale.
(v) If the unit is purchased or developed by a qualified nonprofit housing
corporation pursuant to clause (ii) of subparagraph (A) the local government may
enter into a contract with the qualified nonprofit housing corporation under which
the qualified nonprofit housing corporation would recapture any initial subsidy and
its proportionate share of appreciation if the qualified nonprofit housing corporation
is required to use 100 percent of the proceeds to promote homeownership for lower
income households as defined by Health and Safety Code Section 50079.5 within the
jurisdiction of the local government.
(3) (A) An applicant shall be ineligible for a density bonus or any other incentives
or concessions under this section if the housing development is proposed on any
property that includes a parcel or parcels on which rental dwelling units are or, if the
dwelling units have been vacated or demolished in the five-year period preceding the
application, have been subject to a recorded covenant, ordinance, or law that restricts
rents to levels affordable to persons and families of lower or very low income; subject
to any other form of rent or price control through a public entity’s valid exercise of
its police power; or occupied by lower or very low income households, unless the
proposed housing development replaces those units, and either of the following applies:
(i) The proposed housing development, inclusive of the units replaced pursuant to
this paragraph, contains affordable units at the percentages set forth in subdivision
(b).
(ii) Each unit in the development, exclusive of a manager’s unit or units, is
affordable to, and occupied by, either a lower or very low income household.
(B) For the purposes of this paragraph, “replace” shall mean either of the following:
(i) If any dwelling units described in subparagraph (A) are occupied on the date
of application, the proposed housing development shall provide at least the same
number of units of equivalent size to be made available at affordable rent or affordable
housing cost to, and occupied by, persons and families in the same or lower income
category as those households in occupancy. If the income category of the household
in occupancy is not known, it shall be rebuttably presumed that lower income renter
households occupied these units in the same proportion of lower income renter
households to all renter households within the jurisdiction, as determined by the most
recently available data from the United States Department of Housing and Urban
Development’s Comprehensive Housing Affordability Strategy database. For
unoccupied dwelling units described in subparagraph (A) in a development with
occupied units, the proposed housing development shall provide units of equivalent
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size to be made available at affordable rent or affordable housing cost to, and occupied
by, persons and families in the same or lower income category as the last household
in occupancy. If the income category of the last household in occupancy is not known,
it shall be rebuttably presumed that lower income renter households occupied these
units in the same proportion of lower income renter households to all renter households
within the jurisdiction, as determined by the most recently available data from the
United States Department of Housing and Urban Development’s Comprehensive
Housing Affordability Strategy database. All replacement calculations resulting in
fractional units shall be rounded up to the next whole number. If the replacement
units will be rental dwelling units, these units shall be subject to a recorded
affordability restriction for at least 55 years. If the proposed development is for-sale
units, the units replaced shall be subject to paragraph (2).
(ii) If all dwelling units described in subparagraph (A) have been vacated or
demolished within the five-year period preceding the application, the proposed housing
development shall provide at least the same number of units of equivalent size as
existed at the highpoint of those units in the five-year period preceding the application
to be made available at affordable rent or affordable housing cost to, and occupied
by, persons and families in the same or lower income category as those persons and
families in occupancy at that time, if known. If the incomes of the persons and families
in occupancy at the highpoint is not known, it shall be rebuttably presumed that
low-income and very low income renter households occupied these units in the same
proportion of low-income and very low income renter households to all renter
households within the jurisdiction, as determined by the most recently available data
from the United States Department of Housing and Urban Development’s
Comprehensive Housing Affordability Strategy database. All replacement calculations
resulting in fractional units shall be rounded up to the next whole number. If the
replacement units will be rental dwelling units, these units shall be subject to a recorded
affordability restriction for at least 55 years. If the proposed development is for-sale
units, the units replaced shall be subject to paragraph (2).
(C) Notwithstanding subparagraph (B), for any dwelling unit described in
subparagraph (A) that is or was, within the five-year period preceding the application,
subject to a form of rent or price control through a local government’s valid exercise
of its police power and that is or was occupied by persons or families above lower
income, the city, county, or city and county may do either of the following:
(i) Require that the replacement units be made available at affordable rent or
affordable housing cost to, and occupied by, low-income persons or families. If the
replacement units will be rental dwelling units, these units shall be subject to a recorded
affordability restriction for at least 55 years. If the proposed development is for-sale
units, the units replaced shall be subject to paragraph (2).
(ii) Require that the units be replaced in compliance with the jurisdiction’s rent or
price control ordinance, provided that each unit described in subparagraph (A) is
replaced. Unless otherwise required by the jurisdiction’s rent or price control ordinance,
these units shall not be subject to a recorded affordability restriction.
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(D) For purposes of this paragraph, “equivalent size” means that the replacement
units contain at least the same total number of bedrooms as the units being replaced.
(E) Subparagraph (A) does not apply to an applicant seeking a density bonus for
a proposed housing development if the applicant’s application was submitted to, or
processed by, a city, county, or city and county before January 1, 2015.
(d) (1) An applicant for a density bonus pursuant to subdivision (b) may submit
to a city, county, or city and county a proposal for the specific incentives or concessions
that the applicant requests pursuant to this section, and may request a meeting with
the city, county, or city and county. The city, county, or city and county shall grant
the concession or incentive requested by the applicant unless the city, county, or city
and county makes a written finding, based upon substantial evidence, of any of the
following:
(A) The concession or incentive does not result in identifiable and actual cost
reductions, consistent with subdivision (k), to provide for affordable housing costs,
as defined in Section 50052.5 of the Health and Safety Code, or for rents for the
targeted units to be set as specified in subdivision (c).
(B) The concession or incentive would have a specific, adverse impact, as defined
in paragraph (2) of subdivision (d) of Section 65589.5, upon public health and safety
or on any real property that is listed in the California Register of Historical Resources
and for which there is no feasible method to satisfactorily mitigate or avoid the specific,
adverse impact without rendering the development unaffordable to low-income and
moderate-income households.
(C) The concession or incentive would be contrary to state or federal law.
(2) The applicant shall receive the following number of incentives or concessions:
(A) One incentive or concession for projects that include at least 10 percent of the
total units for lower income households, at least 5 percent for very low income
households, or at least 10 percent for persons and families of moderate income in a
development in which the units are for sale.
(B) Two incentives or concessions for projects that include at least 17 percent of
the total units for lower income households, at least 10 percent for very low income
households, or at least 20 percent for persons and families of moderate income in a
development in which the units are for sale.
(C) Three incentives or concessions for projects that include at least 24 percent of
the total units for lower income households, at least 15 percent for very low income
households, or at least 30 percent for persons and families of moderate income in a
development in which the units are for sale.
(D) Four incentives or concessions for a project meeting the criteria of subparagraph
(G) of paragraph (1) of subdivision (b). If the project is located within one-half mile
of a major transit stop, the applicant shall also receive a height increase of up to three
additional stories, or 33 feet.
(E) One incentive or concession for projects that include at least 20 percent of the
total units for lower income students in a student housing development.
(3) The applicant may initiate judicial proceedings if the city, county, or city and
county refuses to grant a requested density bonus, incentive, or concession. If a court
77
finds that the refusal to grant a requested density bonus, incentive, or concession is
in violation of this section, the court shall award the plaintiff reasonable attorney’s
fees and costs of suit. This subdivision shall not be interpreted to require a local
government to grant an incentive or concession that has a specific, adverse impact,
as defined in paragraph (2) of subdivision (d) of Section 65589.5, upon health or
safety, and for which there is no feasible method to satisfactorily mitigate or avoid
the specific adverse impact. This subdivision shall not be interpreted to require a local
government to grant an incentive or concession that would have an adverse impact
on any real property that is listed in the California Register of Historical Resources.
The city, county, or city and county shall establish procedures for carrying out this
section that shall include legislative body approval of the means of compliance with
this section.
(4) The city, county, or city and county shall bear the burden of proof for the denial
of a requested concession or incentive.
(e) (1) In no case may a city, county, or city and county apply any development
standard that will have the effect of physically precluding the construction of a
development meeting the criteria of subdivision (b) at the densities or with the
concessions or incentives permitted by this section. Subject to paragraph (3), an
applicant may submit to a city, county, or city and county a proposal for the waiver
or reduction of development standards that will have the effect of physically precluding
the construction of a development meeting the criteria of subdivision (b) at the densities
or with the concessions or incentives permitted under this section, and may request
a meeting with the city, county, or city and county. If a court finds that the refusal to
grant a waiver or reduction of development standards is in violation of this section,
the court shall award the plaintiff reasonable attorney’s fees and costs of suit. This
subdivision shall not be interpreted to require a local government to waive or reduce
development standards if the waiver or reduction would have a specific, adverse
impact, as defined in paragraph (2) of subdivision (d) of Section 65589.5, upon health
or safety, and for which there is no feasible method to satisfactorily mitigate or avoid
the specific adverse impact. This subdivision shall not be interpreted to require a local
government to waive or reduce development standards that would have an adverse
impact on any real property that is listed in the California Register of Historical
Resources, or to grant any waiver or reduction that would be contrary to state or
federal law.
(2) A proposal for the waiver or reduction of development standards pursuant to
this subdivision shall neither reduce nor increase the number of incentives or
concessions to which the applicant is entitled pursuant to subdivision (d).
(3) A housing development that receives a waiver from any maximum controls on
density pursuant to clause (ii) of subparagraph (D) of paragraph (3) of subdivision
(f) shall only be eligible for a waiver or reduction of development standards as provided
in subparagraph (D) of paragraph (2) of subdivision (d) and clause (ii) of subparagraph
(D) of paragraph (3) of subdivision (f), unless the city, county, or city and county
agrees to additional waivers or reductions of development standards.
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(f) For the purposes of this chapter, “density bonus” means a density increase over
the otherwise maximum allowable gross residential density as of the date of application
by the applicant to the city, county, or city and county, or, if elected by the applicant,
a lesser percentage of density increase, including, but not limited to, no increase in
density. The amount of density increase to which the applicant is entitled shall vary
according to the amount by which the percentage of affordable housing units exceeds
the percentage established in subdivision (b).
(1) For housing developments meeting the criteria of subparagraph (A) of paragraph
(1) of subdivision (b), the density bonus shall be calculated as follows:
Percentage Density
Bonus
Percentage Low-Income Units
20 10
21.5 11
23 12
24.5 13
26 14
27.5 15
29 16
30.5 17
32 18
33.5 19
35 20
38.75 21
42.5 22
46.25 23
50 24
(2) For housing developments meeting the criteria of subparagraph (B) of paragraph
(1) of subdivision (b), the density bonus shall be calculated as follows:
Percentage Density Bonus Percentage Very Low Income Units
20 5
22.5 6
25 7
79
27.5 8
30 9
32.5 10
35 11
38.75 12
42.5 13
46.25 14
50 15
(3) (A) For housing developments meeting the criteria of subparagraph (C) of
paragraph (1) of subdivision (b), the density bonus shall be 20 percent of the number
of senior housing units.
(B) For housing developments meeting the criteria of subparagraph (E) of paragraph
(1) of subdivision (b), the density bonus shall be 20 percent of the number of the type
of units giving rise to a density bonus under that subparagraph.
(C) For housing developments meeting the criteria of subparagraph (F) of paragraph
(1) of subdivision (b), the density bonus shall be 35 percent of the student housing
units.
(D) For housing developments meeting the criteria of subparagraph (G) of paragraph
(1) of subdivision (b), the following shall apply:
(i) Except as otherwise provided in clause (ii), the density bonus shall be 80 percent
of the number of units for lower income households.
(ii) If the housing development is located within one-half mile of a major transit
stop, the city, county, or city and county shall not impose any maximum controls on
density.
(4) For housing developments meeting the criteria of subparagraph (D) of paragraph
(1) of subdivision (b), the density bonus shall be calculated as follows:
Percentage Density Bonus Percentage Moderate-Income Units
5 10
6 11
7 12
80
8 13
9 14
10 15
11 16
12 17
13 18
14 19
15 20
16 21
17 22
18 23
19 24
20 25
21 26
22 27
23 28
24 29
25 30
26 31
27 32
28 33
29 34
30 35
31 36
32 37
33 38
34 39
35 40
38.75 41
42.5 42
46.25 43
50 44
(5) All density calculations resulting in fractional units shall be rounded up to the
next whole number. The granting of a density bonus shall not require, or be interpreted,
in and of itself, to require a general plan amendment, local coastal plan amendment,
zoning change, or other discretionary approval.
(g) (1) When an applicant for a tentative subdivision map, parcel map, or other
residential development approval donates land to a city, county, or city and county
in accordance with this subdivision, the applicant shall be entitled to a 15-percent
increase above the otherwise maximum allowable residential density for the entire
development, as follows:
Percentage Density Bonus Percentage Very Low Income
81
15 10
16 11
17 12
18 13
19 14
20 15
21 16
22 17
23 18
24 19
25 20
26 21
27 22
28 23
29 24
30 25
31 26
32 27
33 28
34 29
35 30
(2) This increase shall be in addition to any increase in density mandated by
subdivision (b), up to a maximum combined mandated density increase of 35 percent
if an applicant seeks an increase pursuant to both this subdivision and subdivision
(b). All density calculations resulting in fractional units shall be rounded up to the
next whole number. Nothing in this subdivision shall be construed to enlarge or
diminish the authority of a city, county, or city and county to require a developer to
donate land as a condition of development. An applicant shall be eligible for the
increased density bonus described in this subdivision if all of the following conditions
are met:
(A) The applicant donates and transfers the land no later than the date of approval
of the final subdivision map, parcel map, or residential development application.
(B) The developable acreage and zoning classification of the land being transferred
are sufficient to permit construction of units affordable to very low income households
in an amount not less than 10 percent of the number of residential units of the proposed
development.
(C) The transferred land is at least one acre in size or of sufficient size to permit
development of at least 40 units, has the appropriate general plan designation, is
appropriately zoned with appropriate development standards for development at the
density described in paragraph (3) of subdivision (c) of Section 65583.2, and is or
will be served by adequate public facilities and infrastructure.
(D) The transferred land shall have all of the permits and approvals, other than
building permits, necessary for the development of the very low income housing units
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on the transferred land, not later than the date of approval of the final subdivision
map, parcel map, or residential development application, except that the local
government may subject the proposed development to subsequent design review to
the extent authorized by subdivision (i) of Section 65583.2 if the design is not reviewed
by the local government before the time of transfer.
(E) The transferred land and the affordable units shall be subject to a deed restriction
ensuring continued affordability of the units consistent with paragraphs (1) and (2)
of subdivision (c), which shall be recorded on the property at the time of the transfer.
(F) The land is transferred to the local agency or to a housing developer approved
by the local agency. The local agency may require the applicant to identify and transfer
the land to the developer.
(G) The transferred land shall be within the boundary of the proposed development
or, if the local agency agrees, within one-quarter mile of the boundary of the proposed
development.
(H) A proposed source of funding for the very low income units shall be identified
not later than the date of approval of the final subdivision map, parcel map, or
residential development application.
(h) (1) When an applicant proposes to construct a housing development that
conforms to the requirements of subdivision (b) and includes a childcare facility that
will be located on the premises of, as part of, or adjacent to, the project, the city,
county, or city and county shall grant either of the following:
(A) An additional density bonus that is an amount of square feet of residential
space that is equal to or greater than the amount of square feet in the childcare facility.
(B) An additional concession or incentive that contributes significantly to the
economic feasibility of the construction of the childcare facility.
(2) The city, county, or city and county shall require, as a condition of approving
the housing development, that the following occur:
(A) The childcare facility shall remain in operation for a period of time that is as
long as or longer than the period of time during which the density bonus units are
required to remain affordable pursuant to subdivision (c).
(B) Of the children who attend the childcare facility, the children of very low
income households, lower income households, or families of moderate income shall
equal a percentage that is equal to or greater than the percentage of dwelling units
that are required for very low income households, lower income households, or
families of moderate income pursuant to subdivision (b).
(3) Notwithstanding any requirement of this subdivision, a city, county, or city
and county shall not be required to provide a density bonus or concession for a
childcare facility if it finds, based upon substantial evidence, that the community has
adequate childcare facilities.
(4) “Childcare facility,” as used in this section, means a child daycare facility other
than a family daycare home, including, but not limited to, infant centers, preschools,
extended daycare facilities, and schoolage childcare centers.
(i) “Housing development,” as used in this section, means a development project
for five or more residential units, including mixed-use developments. For the purposes
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of this section, “housing development” also includes a subdivision or common interest
development, as defined in Section 4100 of the Civil Code, approved by a city, county,
or city and county and consists of residential units or unimproved residential lots and
either a project to substantially rehabilitate and convert an existing commercial building
to residential use or the substantial rehabilitation of an existing multifamily dwelling,
as defined in subdivision (d) of Section 65863.4, where the result of the rehabilitation
would be a net increase in available residential units. For the purpose of calculating
a density bonus, the residential units shall be on contiguous sites that are the subject
of one development application, but do not have to be based upon individual
subdivision maps or parcels. The density bonus shall be permitted in geographic areas
of the housing development other than the areas where the units for the lower income
households are located.
(j) (1) The granting of a concession or incentive shall not require or be interpreted,
in and of itself, to require a general plan amendment, local coastal plan amendment,
zoning change, study, or other discretionary approval. For purposes of this subdivision,
“study” does not include reasonable documentation to establish eligibility for the
concession or incentive or to demonstrate that the incentive or concession meets the
definition set forth in subdivision (k). This provision is declaratory of existing law.
(2) Except as provided in subdivisions (d) and (e), the granting of a density bonus
shall not require or be interpreted to require the waiver of a local ordinance or
provisions of a local ordinance unrelated to development standards.
(k) For the purposes of this chapter, concession or incentive means any of the
following:
(1) A reduction in site development standards or a modification of zoning code
requirements or architectural design requirements 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 and actual cost reductions, to provide for affordable
housing costs, as defined in Section 50052.5 of the Health and Safety Code, or for
rents for the targeted units to be set as specified in subdivision (c).
(2) Approval of mixed-use zoning in conjunction with the housing project if
commercial, office, industrial, or other land uses will reduce the cost of the housing
development and if the commercial, office, industrial, or other land uses are compatible
with the housing project and the existing or planned development in the area where
the proposed housing project will be located.
(3) Other regulatory incentives or concessions proposed by the developer or the
city, county, or city and county that result in identifiable and actual cost reductions
to provide for affordable housing costs, as defined in Section 50052.5 of the Health
and Safety Code, or for rents for the targeted units to be set as specified in subdivision
(c).
(l) Subdivision (k) does not limit or require the provision of direct financial
incentives for the housing development, including the provision of publicly owned
84
land, by the city, county, or city and county, or the waiver of fees or dedication
requirements.
(m) This section does not supersede or in any way alter or lessen the effect or
application of the California Coastal Act of 1976 (Division 20 (commencing with
Section 30000) of the Public Resources Code). Any density bonus, concessions,
incentives, waivers or reductions of development standards, and parking ratios to
which the applicant is entitled under this section shall be permitted in a manner that
is consistent with this section and Division 20 (commencing with Section 30000) of
the Public Resources Code.
(n) If permitted by local ordinance, nothing in this section shall be construed to
prohibit a city, county, or city and county from granting a density bonus greater than
what is described in this section for a development that meets the requirements of
this section or from granting a proportionately lower density bonus than what is
required by this section for developments that do not meet the requirements of this
section.
(o) For purposes of this section, the following definitions shall apply:
(1) “Development standard” includes a site or construction condition, including,
but not limited to, a height limitation, a setback requirement, a floor area ratio, an
onsite open-space requirement, or a parking ratio that applies to a residential
development pursuant to any ordinance, general plan element, specific plan, charter,
or other local condition, law, policy, resolution, or regulation.
(2) “Located within one-half mile of a major transit stop” means that any point on
a proposed development, for which an applicant seeks a density bonus, other incentives
or concessions, waivers or reductions of development standards, or a vehicular parking
ratio pursuant to this section, is within one-half mile of any point on the property on
which a major transit stop is located, including any parking lot owned by the transit
authority or other local agency operating the major transit stop.
(3) “Lower income student” means a student who has a household income and
asset level that does not exceed the level for Cal Grant A or Cal Grant B award
recipients as set forth in paragraph (1) of subdivision (k) of Section 69432.7 of the
Education Code. The eligibility of a student to occupy a unit for lower income students
under this section shall be verified by an affidavit, award letter, or letter of eligibility
provided by the institution of higher education in which the student is enrolled or by
the California Student Aid Commission that the student receives or is eligible for
financial aid, including an institutional grant or fee waiver from the college or
university, the California Student Aid Commission, or the federal government.
(4) “Major transit stop” has the same meaning as defined in subdivision (b) of
Section 21155 of the Public Resources Code.
(5) “Maximum allowable residential density” means the density allowed under
the zoning ordinance and land use element of the general plan, or, if a range of density
is permitted, means the maximum allowable density for the specific zoning range and
land use element of the general plan applicable to the project. If the density allowed
under the zoning ordinance is inconsistent with the density allowed under the land
use element of the general plan, the general plan density shall prevail.
85
(6) “Total units” or “total dwelling units” means a calculation of the number of
units that:
(A) Excludes a unit added by a density bonus awarded pursuant to this section or
any local law granting a greater density bonus.
(B) Includes a unit designated to satisfy an inclusionary zoning requirement of a
city, county, or city and county.
(p) (1) Except as provided in paragraphs (2), (3), and (4), upon the request of the
developer, a city, county, or city and county shall not require a vehicular parking
ratio, inclusive of parking for persons with a disability and guests, of a development
meeting the criteria of subdivisions (b) and (c), that exceeds the following ratios:
(A) Zero to one bedroom: one onsite parking space.
(B) Two to three bedrooms: one and one-half onsite parking spaces.
(C) Four and more bedrooms: two and one-half parking spaces.
(2) (A) Notwithstanding paragraph (1), if a development includes at least 20
percent low-income units for housing developments meeting the criteria of
subparagraph (A) of paragraph (1) of subdivision (b) or at least 11 percent very low
income units for housing developments meeting the criteria of subparagraph (B) of
paragraph (1) of subdivision (b), is located within one-half mile of a major transit
stop, and there is unobstructed access to the major transit stop from the development,
then, upon the request of the developer, a city, county, or city and county shall not
impose a vehicular parking ratio, inclusive of parking for persons with a disability
and guests, that exceeds 0.5 spaces per unit. Notwithstanding paragraph (1), if a
development includes at least 40 percent moderate-income units for housing
developments meeting the criteria of subparagraph (D) of paragraph (1) of subdivision
(b), is located within one-half mile of a major transit stop, as defined in subdivision
(b) of Section 21155 of the Public Resources Code, and the residents of the
development have unobstructed access to the major transit stop from the development
then, upon the request of the developer, a city, county, or city and county shall not
impose a vehicular parking ratio, inclusive of parking for persons with a disability
and guests, that exceeds 0.5 spaces per bedroom.
(B) For purposes of this subdivision, “unobstructed access to the major transit
stop” means a resident is able to access the major transit stop without encountering
natural or constructed impediments. For purposes of this subparagraph, “natural or
constructed impediments” includes, but is not limited to, freeways, rivers, mountains,
and bodies of water, but does not include residential structures, shopping centers,
parking lots, or rails used for transit.
(3) Notwithstanding paragraph (1), if a development consists solely of rental units,
exclusive of a manager’s unit or units, with an affordable housing cost to lower income
families, as provided in Section 50052.5 of the Health and Safety Code, then, upon
the request of the developer, a city, county, or city and county shall not impose
vehicular parking standards if the development meets either of the following criteria:
(A) The development is located within one-half mile of a major transit stop and
there is unobstructed access to the major transit stop from the development.
86
(B) The development is a for-rent housing development for individuals who are
62 years of age or older that complies with Sections 51.2 and 51.3 of the Civil Code
and the development has either paratransit service or unobstructed access, within
one-half mile, to fixed bus route service that operates at least eight times per day.
(4) Notwithstanding paragraphs (1) and (8), if a development consists solely of
rental units, exclusive of a manager’s unit or units, with an affordable housing cost
to lower income families, as provided in Section 50052.5 of the Health and Safety
Code, and the development is either a special needs housing development, as defined
in Section 51312 of the Health and Safety Code, or a supportive housing development,
as defined in Section 50675.14 of the Health and Safety Code, then, upon the request
of the developer, a city, county, or city and county shall not impose any minimum
vehicular parking requirement. A development that is a special needs housing
development shall have either paratransit service or unobstructed access, within
one-half mile, to fixed bus route service that operates at least eight times per day.
(5) If the total number of parking spaces required for a development is other than
a whole number, the number shall be rounded up to the next whole number. For
purposes of this subdivision, a development may provide onsite parking through
tandem parking or uncovered parking, but not through onstreet parking.
(6) This subdivision shall apply to a development that meets the requirements of
subdivisions (b) and (c), but only at the request of the applicant. An applicant may
request parking incentives or concessions beyond those provided in this subdivision
pursuant to subdivision (d).
(7) This subdivision does not preclude a city, county, or city and county from
reducing or eliminating a parking requirement for development projects of any type
in any location.
(8) Notwithstanding paragraphs (2) and (3), if a city, county, city and county, or
an independent consultant has conducted an areawide or jurisdictionwide parking
study in the last seven years, then the city, county, or city and county may impose a
higher vehicular parking ratio not to exceed the ratio described in paragraph (1), based
upon substantial evidence found in the parking study, that includes, but is not limited
to, an analysis of parking availability, differing levels of transit access, walkability
access to transit services, the potential for shared parking, the effect of parking
requirements on the cost of market-rate and subsidized developments, and the lower
rates of car ownership for low-income and very low income individuals, including
seniors and special needs individuals. The city, county, or city and county shall pay
the costs of any new study. The city, county, or city and county shall make findings,
based on a parking study completed in conformity with this paragraph, supporting
the need for the higher parking ratio.
(9) A request pursuant to this subdivision shall neither reduce nor increase the
number of incentives or concessions to which the applicant is entitled pursuant to
subdivision (d).
(q) Each component of any density calculation, including base density and bonus
density, resulting in fractional units shall be separately rounded up to the next whole
87
number. The Legislature finds and declares that this provision is declaratory of existing
law.
(r) This chapter shall be interpreted liberally in favor of producing the maximum
number of total housing units.
(s) Notwithstanding any other law, if a city, including a charter city, county, or
city and county has adopted an ordinance or a housing program, or both an ordinance
and a housing program, that incentivizes the development of affordable housing that
allows for density bonuses that exceed the density bonuses required by the version
of this section effective through December 31, 2020, that city, county, or city and
county is not required to amend or otherwise update its ordinance or corresponding
affordable housing incentive program to comply with the amendments made to this
section by the act adding this subdivision, and is exempt from complying with the
incentive and concession calculation amendments made to this section by the act
adding this subdivision as set forth in subdivision (d), particularly subparagraphs (B)
and (C) of paragraph (2) of that subdivision, and the amendments made to the density
tables under subdivision (f).
(t) (1) The Legislature finds and declares that the intent behind the Density Bonus
Law is to allow public entities to reduce or even eliminate subsidies for a particular
project by allowing a developer to include more total units in a project than would
otherwise be allowed by the local zoning ordinance in exchange for affordable units.
It further reaffirms that the intent is to cover at least some of the financing gap of
affordable housing with regulatory incentives, rather than additional public subsidy.
(2) It is therefore the intent of the Legislature to make modifications to the Density
Bonus Law by the act adding this subdivision to further incentivize the construction
of very low, low-, and moderate-income housing units. It is further the intent of the
Legislature in making these modifications to the Density Bonus Law to ensure that
any additional benefits conferred upon a developer are balanced with the receipt of
a public benefit in the form of adequate levels of affordable housing. The Legislature
further intends that these modifications will ensure that the Density Bonus Law creates
incentives for the construction of more housing across all areas of the state.
(Amended by Stats. 2021, Ch. 365, Sec. 1.5. (SB 728) Effective January 1, 2022.)
88
State of California
GOVERNMENT CODE
Section 65915.1
65915.1. For purposes of Section 65915, affordable housing impact fees, including
inclusionary zoning fees and in-lieu fees, shall not be imposed on a housing
development’s affordable units.
(Added by Stats. 2021, Ch. 346, Sec. 1. (AB 571) Effective January 1, 2022.)
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State of California
GOVERNMENT CODE
Section 65915.2
65915.2. If permitted by local ordinance, nothing in Section 65915 shall be construed
to prohibit a city, county, or city and county from requiring an affordability period
longer than 55 years for any units that qualified the applicant for the award of the
density bonus developed in compliance with a local ordinance that requires, as a
condition of the development of residential units, that the development include a
certain percentage of units that are affordable to, and occupied by, low-income, lower
income, very low income, or extremely low income households and that will be
financed without low-income housing tax credits.
(Added by Stats. 2021, Ch. 348, Sec. 1. (AB 634) Effective January 1, 2022.)
90
State of California
GOVERNMENT CODE
Section 65915.5
65915.5. (a) When an applicant for approval to convert apartments to a condominium
project agrees to provide at least 33 percent of the total units of the proposed
condominium project to persons and families of low or moderate income as defined
in Section 50093 of the Health and Safety Code, or 15 percent of the total units of
the proposed condominium project to lower income households as defined in Section
50079.5 of the Health and Safety Code, and agrees to pay for the reasonably necessary
administrative costs incurred by a city, county, or city and county pursuant to this
section, the city, county, or city and county shall either (1) grant a density bonus or
(2) provide other incentives of equivalent financial value. A city, county, or city and
county may place such reasonable conditions on the granting of a density bonus or
other incentives of equivalent financial value as it finds appropriate, including, but
not limited to, conditions which assure continued affordability of units to subsequent
purchasers who are persons and families of low and moderate income or lower income
households.
(b) For purposes of this section, “density bonus” means an increase in units of 25
percent over the number of apartments, to be provided within the existing structure
or structures proposed for conversion.
(c) For purposes of this section, “other incentives of equivalent financial value”
shall not be construed to require a city, county, or city and county to provide cash
transfer payments or other monetary compensation but may include the reduction or
waiver of requirements which the city, county, or city and county might otherwise
apply as conditions of conversion approval.
(d) An applicant for approval to convert apartments to a condominium project may
submit to a city, county, or city and county a preliminary proposal pursuant to this
section prior to the submittal of any formal requests for subdivision map approvals.
The city, county, or city and county shall, within 90 days of receipt of a written
proposal, notify the applicant in writing of the manner in which it will comply with
this section. The city, county, or city and county shall establish procedures for carrying
out this section, which shall include legislative body approval of the means of
compliance with this section.
(e) Nothing in this section shall be construed to require a city, county, or city and
county to approve a proposal to convert apartments to condominiums.
(f) An applicant shall be ineligible for a density bonus or other incentives under
this section if the apartments proposed for conversion constitute a housing development
for which a density bonus or other incentives were provided under Section 65915.
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(g) An applicant shall be ineligible for a density bonus or any other incentives or
concessions under this section if the condominium project is proposed on any property
that includes a parcel or parcels on which rental dwelling units are or, if the dwelling
units have been vacated or demolished in the five-year period preceding the application,
have been subject to a recorded covenant, ordinance, or law that restricts rents to
levels affordable to persons and families of lower or very low income; subject to any
other form of rent or price control through a public entity’s valid exercise of its police
power; or occupied by lower or very low income households, unless the proposed
condominium project replaces those units, as defined in subparagraph (B) of paragraph
(3) of subdivision (c) of Section 65915, and either of the following applies:
(1) The proposed condominium project, inclusive of the units replaced pursuant
to subparagraph (B) of paragraph (3) of subdivision (c) of Section 65915, contains
affordable units at the percentages set forth in subdivision (a).
(2) Each unit in the development, exclusive of a manager’s unit or units, is
affordable to, and occupied by, either a lower or very low income household.
(h) Subdivision (g) does not apply to an applicant seeking a density bonus for a
proposed housing development if their application was submitted to, or processed by,
a city, county, or city and county before January 1, 2015.
(Amended by Stats. 2014, Ch. 682, Sec. 2. (AB 2222) Effective January 1, 2015.)
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State of California
GOVERNMENT CODE
Section 65916
65916. Where there is a direct financial contribution to a housing development
pursuant to Section 65915 through participation in cost of infrastructure, write-down
of land costs, or subsidizing the cost of construction, the city, county, or city and
county shall assure continued availability for low- and moderate-income units for 30
years. When appropriate, the agreement provided for in Section 65915 shall specify
the mechanisms and procedures necessary to carry out this section.
(Added by Stats. 1979, Ch. 1207.)
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State of California
GOVERNMENT CODE
Section 65917
65917. In enacting this chapter it is the intent of the Legislature that the density
bonus or other incentives offered by the city, county, or city and county pursuant to
this chapter shall contribute significantly to the economic feasibility of lower income
housing in proposed housing developments. In the absence of an agreement by a
developer in accordance with Section 65915, a locality shall not offer a density bonus
or any other incentive that would undermine the intent of this chapter.
(Amended by Stats. 2001, Ch. 115, Sec. 14. Effective January 1, 2002.)
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State of California
GOVERNMENT CODE
Section 65917.2
65917.2. (a) As used in this section, the following terms shall have the following
meanings:
(1) “Eligible housing development” means a development that satisfies all of the
following criteria:
(A) The development is a multifamily housing development that contains five or
more residential units, exclusive of any other floor area ratio bonus or incentive or
concession awarded pursuant to this chapter.
(B) The development is located within one of the following:
(i) An urban infill site that is within a transit priority area.
(ii) One-half mile of a major transit stop.
(C) The site of the development is zoned to allow residential use or mixed-use
with a minimum planned density of at least 20 dwelling units per acre and does not
include any land zoned for low density residential use or for exclusive nonresidential
use.
(D) The applicant and the development satisfy the replacement requirements
specified in subdivision (c) of Section 65915.
(E) The development includes at least 20 percent of the units, excluding any
additional units allowed under a floor area ratio bonus or other incentives or
concessions provided pursuant to this chapter, with an affordable housing cost or
affordable rent to, and occupied by, persons with a household income equal to or less
than 50 percent of the area median income, as determined pursuant to Section 50093
of the Health and Safety Code, and subject to an affordability restriction for a minimum
of 55 years.
(F) The development complies with the height requirements applicable to the
underlying zone. A development shall not be eligible to use a floor area ratio bonus
or other incentives or concessions provided pursuant to this chapter to relieve the
development from a maximum height limitation.
(2) “Floor area ratio” means the ratio of gross building area of the eligible housing
development, excluding structured parking areas, proposed for the project divided by
the net lot area. For purposes of this paragraph, “gross building area” means the sum
of all finished areas of all floors of a building included within the outside faces of its
exterior walls.
(3) “Floor area ratio bonus” means an allowance for an eligible housing
development to utilize a floor area ratio over the otherwise maximum allowable
density permitted under the applicable zoning ordinance and land use elements of the
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general plan of a city or county, calculated pursuant to paragraph (2) of subdivision
(b).
(4) “Major transit stop” has the same meaning as defined in Section 21155 of the
Public Resources Code.
(5) “Transit priority area” has the same meaning as defined in Section 21099 of
the Public Resources Code.
(b) (1) A city council, including a charter city council or the board of supervisors
of a city and county, or county board of supervisors may establish a procedure by
ordinance to grant a developer of an eligible housing development, upon the request
of the developer, a floor area ratio bonus, calculated as provided in paragraph (2), in
lieu of a density bonus awarded on the basis of dwelling units per acre.
(2) In calculating the floor area ratio bonus pursuant to this section, the allowable
gross residential floor area in square feet shall be the product of all of the following
amounts:
(A) The allowable residential base density in dwelling units per acre.
(B) The site area in square feet, divided by 43,560.
(C) 2,250.
(c) The city council or county board of supervisors shall not impose any parking
requirement on an eligible housing development in excess of 0.1 parking spaces per
unit that is affordable to persons and families with a household income equal to or
less than 120 percent of the area median income and 0.5 parking spaces per unit that
is offered at market rate.
(d) A city or county that adopts a floor area ratio bonus ordinance pursuant to this
section shall allow an applicant seeking to develop an eligible residential development
to calculate impact fees based on square feet, instead of on a per unit basis.
(e) In the case of an eligible housing development that is zoned for mixed-use
purposes, any floor area ratio requirement under a zoning ordinance or land use
element of the general plan of the city or county applicable to the nonresidential
portion of the eligible housing development shall continue to apply notwithstanding
the award of a floor area ratio bonus in accordance with this section.
(f) An applicant for a floor area ratio bonus pursuant to this section may also submit
to the city, county, or city and county a proposal for specific incentives or concessions
pursuant to subdivision (d) of Section 65915.
(g) (1) This section shall not be interpreted to do either of the following:
(A) Supersede or preempt any other section within this chapter.
(B) Prohibit a city, county, or city and county from providing a floor area ratio
bonus under terms that are different from those set forth in this section.
(2) The adoption of an ordinance pursuant to this section shall not be interpreted
to relieve a city, county, or city and county from complying with Section 65915.
(Added by Stats. 2018, Ch. 915, Sec. 1. (AB 2372) Effective January 1, 2019.)
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State of California
GOVERNMENT CODE
Section 65917.5
65917.5. (a) As used in this section, the following terms shall have the following
meanings:
(1) “Child care facility” means a facility installed, operated, and maintained under
this section for the nonresidential care of children as defined under applicable state
licensing requirements for the facility.
(2) “Density bonus” means a floor area ratio bonus over the otherwise maximum
allowable density permitted under the applicable zoning ordinance and land use
elements of the general plan of a city, including a charter city, city and county, or
county of:
(A) A maximum of five square feet of floor area for each one square foot of floor
area contained in the child care facility for existing structures.
(B) A maximum of 10 square feet of floor area for each one square foot of floor
area contained in the child care facility for new structures.
For purposes of calculating the density bonus under this section, both indoor and
outdoor square footage requirements for the child care facility as set forth in applicable
state child care licensing requirements shall be included in the floor area of the child
care facility.
(3) “Developer” means the owner or other person, including a lessee, having the
right under the applicable zoning ordinance of a city council, including a charter city
council, city and county board of supervisors, or county board of supervisors to make
an application for development approvals for the development or redevelopment of
a commercial or industrial project.
(4) “Floor area” means as to a commercial or industrial project, the floor area as
calculated under the applicable zoning ordinance of a city council, including a charter
city council, city and county board of supervisors, or county board of supervisors and
as to a child care facility, the total area contained within the exterior walls of the
facility and all outdoor areas devoted to the use of the facility in accordance with
applicable state child care licensing requirements.
(b) A city council, including a charter city council, city and county board of
supervisors, or county board of supervisors may establish a procedure by ordinance
to grant a developer of a commercial or industrial project, containing at least 50,000
square feet of floor area, a density bonus when that developer has set aside at least
2,000 square feet of floor area and 3,000 outdoor square feet to be used for a child
care facility. The granting of a bonus shall not preclude a city council, including a
charter city council, city and county board of supervisors, or county board of
supervisors from imposing necessary conditions on the project or on the additional
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square footage. Projects constructed under this section shall conform to height, setback,
lot coverage, architectural review, site plan review, fees, charges, and other health,
safety, and zoning requirements generally applicable to construction in the zone in
which the property is located. A consortium with more than one developer may be
permitted to achieve the threshold amount for the available density bonus with each
developer’s density bonus equal to the percentage participation of the developer. This
facility may be located on the project site or may be located offsite as agreed upon
by the developer and local agency. If the child care facility is not located on the site
of the project, the local agency shall determine whether the location of the child care
facility is appropriate and whether it conforms with the intent of this section. The
child care facility shall be of a size to comply with all state licensing requirements in
order to accommodate at least 40 children.
(c) The developer may operate the child care facility itself or may contract with a
licensed child care provider to operate the facility. In all cases, the developer shall
show ongoing coordination with a local child care resource and referral network or
local governmental child care coordinator in order to qualify for the density bonus.
(d) If the developer uses space allocated for child care facility purposes, in
accordance with subdivision (b), for purposes other than for a child care facility, an
assessment based on the square footage of the project may be levied and collected by
the city council, including a charter city council, city and county board of supervisors,
or county board of supervisors. The assessment shall be consistent with the market
value of the space. If the developer fails to have the space allocated for the child care
facility within three years, from the date upon which the first temporary certificate
of occupancy is granted, an assessment based on the square footage of the project
may be levied and collected by the city council, including a charter city council, city
and county board of supervisors, or county board of supervisors in accordance with
procedures to be developed by the legislative body of the city council, including a
charter city council, city and county board of supervisors, or county board of
supervisors. The assessment shall be consistent with the market value of the space.
A penalty levied against a consortium of developers shall be charged to each developer
in an amount equal to the developer’s percentage square feet participation. Funds
collected pursuant to this subdivision shall be deposited by the city council, including
a charter city council, city and county board of supervisors, or county board of
supervisors into a special account to be used for child care services or child care
facilities.
(e) Once the child care facility has been established, prior to the closure, change
in use, or reduction in the physical size of, the facility, the city, city council, including
a charter city council, city and county board of supervisors, or county board of
supervisors shall be required to make a finding that the need for child care is no longer
present, or is not present to the same degree as it was at the time the facility was
established.
(f) The requirements of Chapter 5 (commencing with Section 66000) and of the
amendments made to Sections 53077, 54997, and 54998 by Chapter 1002 of the
Statutes of 1987 shall not apply to actions taken in accordance with this section.
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(g) This section shall not apply to a voter-approved ordinance adopted by
referendum or initiative.
(Amended by Stats. 2008, Ch. 179, Sec. 112. Effective January 1, 2009.)
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State of California
GOVERNMENT CODE
Section 65918
65918. The provisions of this chapter shall apply to charter cities.
(Added by Stats. 1979, Ch. 1207.)
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Attachment No. PC 4
City Council Resolution No. 2020-36
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INTENTIONALLY BLANK PAGE102
RESOLUTION NO. 2020-36
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
NEWPORT BEACH, CALIFORNIA, INITIATING
AMENDMENTS TO TITLE 20 (PLANNING AND ZONING)
AND TITLE 21 (LOCAL COASTAL PROGRAM
IMPLEMENTATION PLAN) OF THE CITY OF NEWPORT
BEACH MUNICIPAL CODE, AND TO THE COASTAL LAND
USE PLAN OF THE LOCAL COASTAL PROGRAM
RELATED TO DENSITY BONUSES (PA2020-032)
WHEREAS, Section 20.66.020 (Initiation of Amendment) of Newport Beach
Municipal Code ("NBMC") provides that the City Council of the City of Newport Beach
City Council") may initiate an amendment to Title 20 (Planning and Zoning) of the
NBMC with or without a recommendation from the Planning Commission;
WHEREAS, City Council Policy K-1 entitled "General Plan and Local Coastal
Program" requires amendments to the City of Newport Beach certified Local Coastal
Program to be initiated by the City Council; and
WHEREAS, the City Council desires to amend Title 20 and Title 21 of the NBMC,
and the Coastal Land Us Plan of the Local Coastal Program related to density bonuses.
NOW, THEREFORE, the City Council of the City of Newport Beach resolves as
follows..
Section 1: The City Council hereby initiates amendments to Title 20 (Planning
and Zoning) of the NBMC, Title 21 (Local Coastal Program Implementation Plan) of the
NBMC, and the Coastal Land Use Plan of the Local Coastal Program related to density
bonuses.
Section 2: The recitals provided in this resolution are true and correct and are
incorporated into the operative portion of this resolution.
Section 3: If any section, subsection, sentence, clause or phrase of this
resolution is, for any reason, held to be invalid or unconstitutional, such decision shall
not affect the validity or constitutionality of the remaining portions of this resolution. The
City Council hereby declares that it would have passed this resolution, and each
section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any
one or more sections, subsections, sentences, clauses or phrases be declared invalid
or unconstitutional.
103
Resolution No. 2020-36
Page 2 of 2
Section 4: The City Council finds the adoption of this resolution is exempt
from environmental review under the California Environmental Quality Act ("CEQA"),
pursuant to Section 15262 of the CEQA Guidelines, California Code of Regulations,
Title 14, Division 6, Chapter 3, because it involves feasibility or planning studies for
possible future actions which the agency, board, or commission has not approved or
adopted.
Section 5: This resolution shall take effect immediately upon its adoption
by the City Council, and the City Clerk shall certify the vote adopting this resolution.
ADOPTED this 14th day of April, 2020.
ATTEST:
dO44
Leilani I. Brown
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
Aaron C. Harp
City Attorney
Will O'Neill
Mayor
104
STATE OF CALIFORNIA }
COUNTY OF ORANGE } ss.
CITY OF NEWPORT BEACH }
I, Leilani I. Brown, City Clerk of the City of Newport Beach, California, do hereby certify that the
whole number of members of the City Council is seven; the foregoing resolution, being Resolution
No. 2020-36, was duly introduced before and adopted by the City Council of said City at a regular
meeting of said Council held on the 14th day of April, 2020; and the same was so passed and adopted by
the following vote, to wit:
AYES: Mayor Will O'Neill, Mayor Pro Tem Brad Avery, Council Member Joy Brenner, Council
Member Diane Dixon, Council Member Duffy Duffield, Council Member Jeff Herdman,
Council Member Kevin Muldoon
NAYS: None
IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of
said City this 15th day of April, 2020.
C
Leilani I. Brown
City Clerk
Newport Beach, California
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INTENTIONALLY BLANK PAGE106
Attachment No. PC 5
Redlines of Draft Code Revisions
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INTENTIONALLY BLANK PAGE108
Underline/Strikeout Version of Title 20 (Planning and Zoning Code) Revisions
Zoning Code Amendment No. CA2020-004
Section 1: Subsection C(1) of Section 20.12.020 (Rules of Interpretation) of Chapter 20.12
(Interpretation of Zoning Code Provisions) of Title 20 (Planning and Zoning) the NBMC is hereby
amended to read as follows:
C. Calculations.
1. Residential Density. When Except for projects that include a density bonus in accordance
with Section 20.32.040(A), when the number of dwelling units allowed on a site is
calculated based on the minimum site area per dwelling unit, any fraction of a unit shall be
rounded down to the next lowest whole number. For example, where a residential zoning
district requires a minimum site area per dwelling unit of one thousand five hundred (1,500)
square feet; a site of ten thousand (10,000) square feet would be allowed six dwelling units
(10,000 sq. ft/1,500 sq. ft. per dwelling unit = 6.66 dwelling units, which is rounded down
to six (6) dwelling units).
Example: Ten thousand (10,000) sq. ft. site area/one thousand five hundred (1,500) sq. ft.
per unit = 6.66 dwelling units. This would be rounded down to six dwelling units.
Section 2: Chapter 20.32 (Density Bonus) of Title 20 (Planning and Zoning) the NBMC is
hereby deleted in its entirety and replaced with the following:
Chapter 20.32
Density Bonus
Sections:
20.32.010 Purpose.
20.32.020 Definitions.
20.32.030 Eligibility for Density Bonus and Incentives.
20.32.040 General Requirements.
20.32.050 Allowed Density Bonuses.
20.32.060 Parking Requirements in Density Bonus Projects.
20.32.070 Allowed Incentives or Concessions.
20.32.080 Waivers and Reductions of Development Standards.
20.32.090 Incentives for Housing with Child Care Facilities.
20.32.100 Condominium Conversions.
20.32.110 Design and Distribution of Affordable Units.
20.32.120 Replacement Units.
20.32.130 Continued Availability.
20.32.140 Occupancy and Resale of Ownership Units.
20.32.150 Approval Process.
20.32.160 Affordable Housing Agreement.
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20.32.010 Purpose.
The purpose of this chapter is to provide a means for granting density bonuses and incentives
in compliance with Government Code Sections 65915 through 65918 as the same may be
amended from time to time. This chapter provides regulations for considering density bonus
and incentive requests for the development of housing that is affordable to lower-, low-, and
moderate-income households, foster youth, disabled veterans, homeless persons, lower-
income students, senior citizens, and childcare.
20.32.020 Definitions.
As used in this chapter, the following words shall have the following meanings:
A. “Affordable Housing” means housing for which the allowable housing expenses paid by a
qualifying household shall not exceed a specified fraction of the county median income,
adjusted for household size. This includes housing designated for extremely low-, very low,
low-, and moderate-income households.
B. “Childcare Facility” means a child day care facility, other than a family day care home,
including, but not limited to, infant centers, preschools, extended day care facilities, and
school-age childcare center. “Childcare facility” does not include public or private primary
or secondary education facilities.
C. “Condominium Conversion” means the conversion of apartments, or other rental units, into
ownership property that consist of an undivided interest in common in a portion of real
property coupled with a separate interest within the boundaries of the dwelling unit.
D. “Density Bonus” means a density increase over the maximum allowable residential density
under applicable zoning and Land Use Element of the General Plan as of the date of
application.
E. “Development Standard” means a site or construction condition, including, but not limited
to, a height limitation, setback requirement, floor area ratio, an onsite open-space
requirement, or a parking ratio that applies to a housing development pursuant to any
ordinance, general plan policy, specific plan, or other local condition, law, policy, resolution,
or regulation. Development standard shall not mean an impact fee, inclusionary housing
requirement, or dedication of land.
F. “Disabled Veteran” means any veteran who is currently declared by the United States
Veterans Administration to be ten (10) percent or more disabled as a result of service in the
armed forces. Proof of such disability shall be deemed conclusive if it is of record in the
United States Veterans Administration.
G. “Equivalent Financial Value” means an incentive that would result in a reduction in cost to
the developer/property owner based upon the land cost per dwelling unit and shall be
calculated based upon the difference in the value of the land with and without the density
bonus.
H. “Equivalent Size” means that the replacement units specified in Section 20.32.120 contain
at least the same total number of bedrooms as the units being replaced.
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I. “Foster Youth” means a person in California whose dependency was established or
continued by a court of competent jurisdiction, including a tribal court, on or after the youth's
13th birthday and who is no older than 25 years of age at the commencement of the
academic year.
J. “Homeless Person” shall have the same meaning as that phrase is defined in Section 11302
of the federal McKinney-Vento Homeless Assistance Act (42U.S.C. Ch. 119).
K. “Housing Development” means a development project for five (5) or more residential
dwelling units, including mixed-use developments, subdivisions, or common interest
development. A “housing development” may consist of residential units, unimproved
residential lots, a project to substantially rehabilitate and convert an existing commercial
building to residential use, or the substantial rehabilitation of an existing multifamily dwelling
where the result of the rehabilitation would result in a net increase in available residential
units. For purposes of calculating a density bonus, the residential units shall be on
contiguous sites that are the subject of one (1) development application but may include
more than one subdivision map.
L. “Lower Income Student” means a student who has a household income and asset level that
does not exceed the level for Cal Grant A or Cal Grant B award recipients as set forth
Education Code Section 69432.7(k)(1). The eligibility of a student to occupy a unit for lower
income students under this section shall be verified by an affidavit, award letter, or letter of
eligibility provided by the institution of higher education in which the student is enrolled or
by the California Student Aid Commission that the student receives or is eligible for financial
aid, including an institutional grant or fee waiver from the college or university, the California
Student Aid Commission, or the federal government.
M. “Major Transit Stop” means a site containing an existing rail transit station or the intersection
of two (2) or more major bus routes with a frequency of service interval of fifteen (15)
minutes or less at the intersection of the two (2) routes during both the morning and
afternoon peak commute hours.
N. “Natural or Constructed Impediments” means a hindrance or obstruction that prevents
pedestrian or bicycle access to a major transit stop. Natural or constructed impediments
include, but are not limited to, freeways, rivers, mountains, harbors, and bodies of water,
but does not include residential structures, shopping centers, parking lots, or rails used for
transit.
O. “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 the application was deemed complete. The following
shall not constitute a specific, adverse impact upon the public health or safety: (1)
inconsistency with the zoning ordinance or general plan land use designation, or (2) the
eligibility to claim a welfare exemption under subdivision (g) of Section 214 of the Revenue
and Taxation Code.
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P. “Transitional Foster Youth” means a person whose dependency was established or
continued by the court on or after the youth’s 16th birthday and who is no older than 25
years of age at the commencement of the academic year.
Q. “Unobstructed Access” means a major transit stop that the income qualified resident of the
housing development is able to walk or bike to from the residence without encountering
natural or constructed impediments, which include, but are not limited to, freeways, rivers,
mountains, harbors and other bodies of water, but does not include residential structures,
shopping centers, parking lots, or rails used for transit with legal pedestrian access through
the property.
20.32.030 Eligibility for Density Bonus and Incentives.
In order to be eligible for a density bonus, incentive(s) or concession(s), or waiver or reduction
of development standard(s) as provided by this chapter, a housing development or
condominium conversion shall comply with the following requirements and satisfy all other
applicable provisions of this Zoning Code, except as otherwise provided by this Chapter.
A. Eligibility Requirements. A housing development shall include only one (1) of the following:
1. A minimum of five (5) percent of the total number of units of a housing development as
restricted and affordable to very low-income households.
2. A minimum of ten (10) percent of the total number of units of a housing development as
restricted and affordable to low-income households.
3. A minimum of ten (10) percent of the total units in a for-sale housing development as
restricted and affordable to moderate-income households provided that all units in the
housing development are offered to the public for purchase.
4. One hundred (100) percent of all units in a housing development, exclusive of a
manager’s unit or units, as restricted and affordable to lower-income households, except
that no more than twenty (20) percent of the units in the development, including total
units and density bonus units, may be affordable to moderate-income households.
5. A minimum of ten (10) percent of the total units of a housing development project for
transitional foster youth, disabled veterans, or homeless persons provided at the same
affordability level as very low-income units.
6. A minimum of twenty (20) percent of the total units of a housing development are
affordable to lower-income college students.
7. A condominium conversion project where either thirty-three (33) percent of the units
converted are affordable to low- or moderate-income households, or fifteen (15) percent
of the units converted are affordable to very low- or extremely low-income households.
8. A senior citizen housing development as defined in Civil Code Sections 51.3 and 51.12
that has at least thirty-five (35) dwelling units or a mobile home park that limits residency
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based on age requirements for housing older persons in compliance with Civil Code
Sections 798.76 or 799.5.
9. The applicant for a housing development project donates at least one (1) acre of land to
the City of Newport Beach for very low-income units, provided the land has the
appropriate general plan designation, zoning, permits and approvals, and access to
public facilities needed for such housing.
B. Housing Development Not Eligible for a Density Bonus, Concession, Incentive, or Waiver.
A housing development shall not be eligible for a density bonus, or any incentive,
concession, or waiver of a development standard under this Chapter on a property
containing existing affordable housing unless:
2. The housing development replaces the existing affordable units in accordance with all
of the requirements set forth in Section 20.32.120; and
3. The housing development, inclusive of the units replaced pursuant to this paragraph,
contains affordable units at least one (1) of the percentage levels set forth in Section
20.32.030(A).
20.32.040 General Requirements.
A. Fractional Units. The calculation of a density bonus in compliance with this section that
results in fractional units, including base density and bonus density, shall be rounded up to
the next whole number.
B. Mixed Income Development. If a housing development qualifies for a density bonus under
more than one (1) income category; as senior housing; or as housing intended to serve
transitional foster youth, disabled veterans, or homeless persons; the applicant shall select
only one (1) of the above categories in the application. Density bonuses from more than
one (1) category may not be combined.
C. General Plan & Zoning Consistency. The granting of a density bonus, in and of itself, shall
not be interpreted as requiring a General Plan amendment, Zoning Map amendment, or
other discretionary approval.
D. Financial Incentives. The provisions of this Chapter shall not be interpreted to require or
limit the City from providing direct financial incentives, including the provision of publicly
owned land or the waiver of fees or dedication requirements.
E. Increased Density Limit. A housing development shall not exceed the cumulative total of
base units allowed by the underlying zone and the bonus density units allowed by Section
20.32.050. Incentives, concessions, or development standard waivers shall not be used to
increase density.
F. Reduced Density. An applicant for a Density Bonus may elect to provide a lesser
percentage of density increase than what is allowed authorized by Section 20.32.050
including, but not limited to, no increase in density, but shall remain eligible for concessions
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or incentives, waivers of development standards, and eligible parking requirements
provided the project meets the eligibility requirements of this Section.
20.32.050 Allowed Density Bonuses.
A housing development that complies with one (1) of the eligibility levels in Section 20.32.030
is entitled to a density bonus as follows, unless a lesser percentage is proposed by the
applicant.
A. Density Bonus for Very Low, Low, and Moderate-Income Households. A housing
development that is eligible for a density bonus pursuant to Section 20.32.030(A)(1) through
Section 20.32.030(A)(4) is entitled to a density bonus calculated as follows:
TABLE 3-6
VERY LOW, LOW, AND MODERATE-
Density Bonus Percentage
Percentage of
Base
Units Proposed
Very Low Income Low Income Moderate Income
5% 20% - -
6% 22.5% - -
7% 25% - -
8% 27.5% - -
9% 30% - -
10% 32.5% 20% 5%
11% 35% 21.5% 6%
12% 38.75% 23% 7%
13% 42.5% 24.5% 8%
14% 46.25% 26% 9%
15% 50% 27.5% 10%
16% 50% 29% 11%
17% 50% 30.5% 12%
18% 50% 32% 13%
19% 50% 33.5% 14%
20% 50% 35% 15%
21% 50% 38.75% 16%
22% 50% 42.5% 17%
23% 50% 46.25% 18%
24% 50% 50% 19%
25% 50% 50% 20%
26% 50% 50% 21%
27% 50% 50% 22%
28% 50% 50% 23%
29% 50% 50% 24%
30% 50% 50% 25%
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31% 50% 50% 26%
32% 50% 50% 27%
33% 50% 50% 28%
34% 50% 50% 29%
35% 50% 50% 30%
36% 50% 50% 31%
37% 50% 50% 32%
38% 50% 50% 33%
39% 50% 50% 34%
40% 50% 50% 35%
41% 50% 50% 38.75%
42% 50% 50% 42.5%
43% 50% 50% 46.25%
44% 50% 50% 50%
100% 80% 80% 80%
Notwithstanding the foregoing, a cap on density will not apply if both of the following conditions
are met:
1. One hundred (100) percent of the units in a housing development exclusive of a
manager’s unit or units, are restricted and affordable to very-low and low-income
households, except that no more than twenty (20) percent of the total units (including
density bonus units) in the housing development are restricted and affordable to
moderate-income households.
2. The housing development is located within one-half mile of a major transit stop with
unobstructed access.
B. Density Bonus for Transitional Foster Youth, Disabled Veterans, or Homeless Persons. A
housing development that is eligible for a density bonus at the level set forth in Section
20.32.030(A)(5) shall be entitled to a density bonus of twenty (20) percent.
C. Density Bonus for Lower Income College Students. A student housing development that is
eligible for a density bonus at the level set forth in Section 20.32.030(A)(6) shall be entitled
to a density bonus of thirty-five (35) percent.
1. All units in the student housing development will be used exclusively for undergraduate,
graduate, or professional students enrolled full-time at an institution of higher education
accredited by the Western Association of Schools and Colleges or the Accrediting
Commission for Community and Junior Colleges.
2. The applicant or property owner shall provide evidence to the City that the housing
development shall be subject to an operating agreement or lease with one (1) or more
institution of higher education that all units shall be exclusively occupied by the students
of the institution(s).
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3. The rent for affordable units shall be calculated at thirty (30) percent of sixty-five (65)
percent of the area median income for a single-room occupancy unit.
4. Priority for the affordable units shall be given to lower income students experiencing
homelessness. A homeless service provider, as defined in paragraph (3) of subdivision
(e) of Section 103577 of the Health and Safety Code, or institution of higher education
that has knowledge of a person’s homeless status may verify a person’s status as
homeless for purposes of this subsection.
5. For purposes of calculating a density bonus granted pursuant to this section, the term
“unit” shall mean one (1) rental bed and its pro rata share of associated common area
facilities.
D. Density Bonus for Condominium Conversion. A condominium conversion that is eligible for
a density bonus pursuant to Section 20.32.030(A)(7) shall be entitled to a density bonus of
twenty-five (25) percent provided the condominium conversion meets all of the
requirements in Section 20.32.100.
E. Density Bonus for Senior Housing. A senior housing development that is eligible for a
density bonus pursuant to Section 20.32.030(A)(8) shall be entitled to a density bonus of
twenty (20) percent.
F. Density Bonus for donating land for very low-income units. A housing development that
includes the donation of land for the development of very low-income housing pursuant to
Section 20.32.030(A)(9) is entitled to a density bonus calculated as follows:
TABLE 3-7
LAND DEDICATED TO ACCOMMODATE VERY LOW-INCOME
Percentage of
Base
Units Proposed
Density Bonus
Percentage
10% 15%
11% 16%
12% 17%
13% 18%
14% 19%
15% 20%
16% 21%
17% 22%
18% 23%
19% 24%
20% 25%
21% 26%
22% 27%
23% 28%
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24% 29%
25% 30%
26% 31%
27% 32%
28% 33%
29% 34%
30% 35%
1. Any increase authorized by this subsection may be approved in addition to any increase
in density allowed by Section 20.32.030 up to a maximum combined density increase of
thirty-five (35) percent.
2. The donated land shall be the greater of:
a. One (1) acre;
b. Sufficient square-footage or acreage to permit development of the percentage of
base units proposed; or
c. Sufficient square-footage or acreage to permit development of forty (40) units
under the existing general plan and zoning designation.
3. The existing general plan and zoning designation of the donated land shall is zoned to
accommodate at least 30 dwelling units per acre and is served by adequate public
facilities and infrastructure or will be served by adequate public facilities and
infrastructure by the housing development.
4. The land shall be donated and transferred to the City or a housing developer that is
approved by the City. The applicant shall donate and transfer the land no later than the
date of approval of the final subdivision map, or issuance of building permits for a
housing development where no subdivision is required.
5. The City shall not approve the final subdivision map or issue building permits for the
housing development unless and until all permits, other than building permits, for the
development of very low-income housing have been issued for the donated and
transferred land.
6. The donated and transferred land shall be within the boundary of the housing
development, or upon approval of the reviewing authority, within one-quarter (1/4) mile
of the boundary of the housing development.
7. The source of funding for the development of very low-income housing on the donated
and transferred land shall be identified not later than the date of approval of the final
subdivision map or issuance of building permits for the housing development.
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8. The donated and transferred land and the affordable units shall be subject to a deed
restriction recorded on the property at the time of transfer ensuring continued
affordability of the units consistent with Section 20.32.130.
20.32.060 Parking Requirements in Density Bonus Projects.
A. Applicability. For a housing development that meets one (1) of the eligibility levels in Section
20.32.030, the applicant may request application of the parking requirements set forth
herein. An applicant may request additional parking incentives beyond those provided in
this section in compliance with Sections 20.32.070 and 20.32.080.
B. Number of Parking Spaces Required.
1. Parking Ratios. At the request of the applicant, the following minimum parking ratios
apply to the housing development:
Dwelling Unit Size Onsite Parking per
Unit
Studio to 1 Bedroom 1 space
2 to 3 Bedrooms 1.5 spaces
4 or more Bedrooms 2.5 spaces
2. Within One-Half Mile (½) of Major Transit Stop. Notwithstanding subsection B(1), if a
housing development provides at least twenty (20) percent low-income units or eleven
(11) percent very low-income units and is located within one-half (½) mile of a major
transit stop with unobstructed access; then upon the request of the developer, the City
may not impose a vehicular parking ratio, inclusive of handicapped and guest parking,
that exceeds 0.5 spaces per bedroom.
3. Zero Parking. Notwithstanding subsection B(1), if a housing development consists
solely of rental units affordable to lower income families; then upon the request of the
developer, the City may not impose a vehicular parking ratio, inclusive of handicapped
and guest parking, if either of the following criteria are met:
a. The housing development is located within one-half (½) mile of a major transit
stop with unobstructed access from the housing development;
b. The housing development is a for-rent housing development for individuals who
are 62 years of age or older that meet the definition in Sections 51.2 and 51.3 of
the Civil Code and the housing development has either paratransit service or
unobstructed access within one-half (½) mile to a fixed bus route that operates
at least eight (8) times per day; or
c. The housing development is either a special needs housing development, as
defined in Section 51312 of the Health and Safety Code, or supportive housing
development as defined in Section 50675.14 of the Health and Safety Code, and
the housing development has either paratransit service or unobstructed access
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within one-half mile of a fixed bus route that operates at least eight (8) times per
day.
4. Notwithstanding paragraphs (2) and (3), if the City or an independent consultant has
conducted an areawide or jurisdiction-wide parking study in the last seven (7) years,
then the City may impose a higher vehicular parking ratio not to exceed the ratio
described in paragraph (1), based upon substantial evidence found in the parking
study, that includes, but is not limited to, an analysis of parking availability, differing
levels of transit access, walkability access to transit services, the potential for shared
parking, the effect of parking requirements on the cost of market-rate and subsidized
developments, and the lower rates of car ownership for low-income and very low
income individuals, including seniors and special needs individuals.
C. Location of Parking. For purposes of this section, a housing development may provide on-
site parking through uncovered or tandem parking, but not through on-street parking.
D. Rounding of Partial Parking Spaces. If the total number of parking spaces required for a
housing development is other than a whole number, the number shall be rounded up to the
next whole number.
20.32.070 Allowed Incentives or Concessions.
A. Applicant Request and City Approval. The applicant shall include any request for
incentive(s) or concession(s) listed in subsection (C) of this section concurrently with the
application for project approval. The applicant shall provide documentation establishing that
an incentive or concession is necessary to make the housing units economically feasible.
When an applicant makes a request for an incentive or concession, the review authority
shall grant the request unless one or more of the following findings is made, based on
substantial evidence:
1. The incentive or concession is not required in order to provide affordable housing
costs or for rents for the targeted units to be set as specified in Section 20.32.130(B);
2. The incentive or concession would have a specific adverse impact upon public health
and safety, or on any real property listed in the California Register of Historical
Resources and for which there is no feasible method to satisfactorily mitigate or avoid
the specific adverse impact without rendering the development unaffordable to low-
and moderate-income households; or
3. The incentive would be contrary to state or federal law.
B. Number of Incentives or Concessions. Except as provided in subsection (A) of this section,
the review authority shall grant the following number of incentives or concessions:
1. One (1) incentive or concession for a housing development that includes at least ten
(10) percent of the total units for low-income households, at least five (5) percent of the
total units for very low-income households, at least twenty (20) of the total units for low-
income students in a student housing development, or at least ten (10) percent of the
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total units for persons and families of moderate income in a for-sale housing
development.
2. Two (2) incentives or concessions for a housing development that includes at least
seventeen (17) percent of the total units for low-income households, at least ten (10)
percent of the total units for very low-income households, or at least twenty (20) percent
of the total units for persons and families of moderate income in a for-sale housing
development.
3. Three (3) incentives or concessions for a housing development that includes at least
twenty-four (24) percent of the total units for low-income households, at least fifteen (15)
percent of the total units for very low-income households, or at least thirty (30) percent
of the total units for persons and families of moderate income in a for-sale housing
development.
4. Four (4) incentives or concession for projects that meet the criteria of Section
20.32.030(A)(4). If the housing development is located within one-half (½) mile of a
major transit stop with unobstructed access, the housing development is eligible for a
height increase of up to three (3) additional stories, or thirty-three (33) feet.
C. Type of Incentive or Concession. For the purposes of this chapter, “incentive” or
“concession” mean any of the following:
1. A reduction in the development standards, including but not limited to, a height limitation,
a setback requirement, a floor area ratio, an open space requirement, or parking ratio
(in excess of the provisions identified in Section 20.32.060), or architectural design
requirements that exceed the minimum building standards approved by the California
Building Standards Commission in compliance with Health and Safety Code Section
18901 et seq., that would otherwise be required, that results in identifiable, financially
sufficient, and actual cost reductions;
2. A mixed-use project in conjunction with the housing development, if the nonresidential
portion of the mixed-use project will reduce the cost of the housing development; is
compatible with the residential portion of the housing development; and is compatible
with adjacent existing or planned development;
3. A reduction or waiver of any City imposed fee or dedication of land. Approval of a fee
reduction or waiver of fee and/or dedication of land shall be at the sole discretion of the
City Council and is not required to be approved; and/or
4. Other regulatory incentives that will result in identifiable, financially sufficient, and actual
cost reductions.
20.32.080 Waivers or Reductions of Development Standards.
In addition to requesting an incentive or concession, an applicant for a density bonus may also
submit a proposal to the City to waive or reduce an unlimited number of development standards
that would otherwise preclude or inhibit construction of the housing development at the
densities or with the incentives permitted by this Chapter.
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A. When an applicant makes a request for a waiver, the review authority shall grant the request
unless, based on substantial evidence, any of the following findings are made:
1. The waiver or reduction of development standards would have a specific adverse impact
upon public health or safety, and for which there is no feasible method to satisfactorily
mitigate or avoid the specific adverse impact.
2. The waiver or reduction of development standards would have an adverse impact on
any real property listed in the California Register of Historical Resources.
3. The waiver or reduction of development standards would be contrary to state or federal
law.
B. Notwithstanding Section 20.32.080(A), a housing development that is eligible for no cap on
density pursuant Section 20.32.050(A) shall only be eligible for a waiver or reduction of
development standards as provided in Section 20.32.070(B)(4), unless the review authority
grants additional waivers or reductions.
20.32.090 Incentives for Housing with Child Care Facilities.
A housing development that complies with the income requirements of Section 20.32.030(A)
and also includes a childcare facility, other than a large or small family day care home, that will
be located on the same site as the development, shall be eligible for the following incentives in
addition to the incentives provided for the affordable housing.
A. Incentives. The City shall grant a housing development that includes a childcare facility
either of the following incentives:
1. An amount of residential floor area equal to or greater than the floor area of the childcare
facility; or
2. An incentive that contributes to the economic feasibility of the childcare facility (e.g.,
reduction of development standards, reduced parking requirements, monetary
contribution) as provided in Section 20.32.070(C).
B. Requirements to Qualify for Incentives. The City shall require, as a condition of approving
the housing development, that:
1. The childcare facility shall remain in operation for a period of time that is as long as or
longer than the period of time during which the density bonus units are required to
remain affordable in compliance with Section 20.32.130; and
2. Of the children who attend the childcare facility, the children of very low-income
households, low-income households, or families of moderate income shall equal a
percentage that is equal to or greater than the percentage of dwelling units that are
required for very low-income households, lower-income households, or families of
moderate income in compliance with Section 20.30.030(A).
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C. Incentive Not Required. The City shall not be required to provide a density bonus for a
childcare facility if it finds, based upon substantial evidence, that the community has
adequate childcare facilities.
20.32.100 Condominium Conversions.
A. Density Bonus. When an applicant proposes to convert apartments to condominiums, which
meet the eligibility level in Section 20.32.030(A)(7), the City shall grant either a density
bonus of up to twenty-five (25) percent pursuant to Section 20.32.050(D) to create additional
units on the project site or other incentive of equivalent financial value provided:
1. The applicant agrees to pay for the reasonably necessary administrative costs,
including, but is not limited to, staff costs, consultant fees, photocopy costs, and mailing
fees, incurred by the City; and
2. The City places such reasonable conditions on the granting of a density bonus or other
incentives of equivalent financial value as it finds appropriate, including, but not limited
to, conditions which assure continued affordability of units to subsequent purchasers
who are persons and families of very low-, low- and moderate-income households.
B. Replacement Units. All units within the condominium conversion shall meet the replacement
requirements in Section 20.32.120.
C. Ineligible Requests. Apartments which are proposed for conversion to condominiums shall
be ineligible for a density bonus or other incentive under the section if the apartments were
previously granted a density bonus, concession, incentives, or waiver or reduction of
development standards.
D. Preapplication Process. An applicant may submit to the City a preliminary application for
the condominium conversion on a form provided by the Director prior to the submittal of an
application under Chapters 19.08 and 19.64. Within ninety (90) days of receipt of the
preliminary application, the City shall notify the applicant in writing whether the application
is eligible for a condominium conversion pursuant to this section.
E. Approval. An application for condominium conversion shall meet the requirements set forth
in Chapter 19.64. Nothing in this section shall be construed to require the City to approve
an application for a condominium conversion.
20.32.110 Design and Distribution of Affordable Units.
Affordable units shall be designed and distributed within the housing development as follows:
A. Number of Bedrooms. Affordable units shall reflect the range of numbers of bedrooms
provided in the residential development project as a whole;
B. Comparable Quality and Facilities. Affordable units shall be comparable in the facilities
provided (e.g., laundry, recreation, etc.) and in the quality of construction and exterior
design to the market-rate units;
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C. Access. In mixed-income multi-unit structures, the occupants of the affordable housing units
shall have the same access to common entrances and any common areas including parking
areas in that structure as the occupants of the market-rate housing units;
D. Size. Affordable units may be smaller and have different interior finishes and features than
the market-rate units; and
E. Location. Affordable units shall be distributed within the residential development, unless
clustering is allowed by the review authority. Notwithstanding, in a mixed-income multi-unit
structure, affordable units shall not be isolated to a specific floor or an area of a specific
floor.
20.32.120 Replacement Units.
An application for a density bonus on any property with existing rental dwelling units or rental
dwelling units that were vacated or demolished within the five (5) years preceding the
application; and are/were subject to a recorded covenant that restricts rents to very low- or low-
income households, or are/were occupied by very low- or low-income household shall be
subject to the following:
A. Occupied Units. For rental dwelling units that are occupied on the date of the application,
the housing development shall provide at least the same number of affordable units of
equivalent size to be made available at affordable rent or affordable housing cost to, and
occupied by, persons or families in the same or lower income category as those households
in occupancy.
B. Vacant or Demolished Units. For rental dwelling units that have been vacated or demolished
within the five (5) years preceding the application, the housing development shall provide
at least the same number of affordable units of equivalent size as existed at the highpoint
of those units in the five (5) years preceding the application to be made available at
affordable rent or affordable housing cost to, and occupied by, persons and families in the
same or lower income category as those persons and families in occupancy at that time.
C. Unknown Household Income. If the income of the existing occupants or occupants within
the past five (5) years is unknown to the City or the applicant, it shall be rebuttably presumed
that the rental dwellings units were occupied by low-income and very low-income renter
households as determined by the most recently available data from the United States
Department of Housing and Urban Development’s Comprehensive Housing Affordability
Strategy database.
20.32.130 Continued Availability.
The units that qualified the housing development for a density bonus and other incentives shall
continue to be available as affordable and/or senior units in compliance with the following
requirements:
A. Duration of Availability. The applicant shall agree to, and the City shall ensure the continued
availability of the units that qualified the housing development for a density bonus and other
incentives for at least fifty-five (55) years, or a longer time if required by the construction or
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mortgage financing assistance program, mortgage insurance program, or rental subsidy
program.
B. Affordable Costs. The rents and owner-occupied costs charged for the housing units shall
not exceed the following amounts during the period of continued availability required by this
section:
1. Rental Units. Rents for density bonus units shall be set at an affordable rent as defined
in Health and Safety Code Section 50053; and
2. Owner-Occupied Units. Owner-occupied units shall be available at an affordable
housing cost as defined in Health and Safety Code Section 50052.5.
20.32.140 Occupancy and Resale of Ownership Units.
A housing development that includes for-sale units that are restricted and affordable to
moderate-income households shall limit the occupancy and resale of the units as follows.
A. Occupancy. The initial occupants of a for-sale unit, which qualified the applicant for the
award of the density bonus, meets either of the following conditions:
1. The unit is initially occupied by a person or family of very low, low, or moderate income,
as required, and it is offered at an affordable housing cost, as that cost is defined in
Section 50052.5 of the Health and Safety Code and is subject to an equity sharing
agreement.
2. The unit is purchased by a qualified nonprofit housing corporation pursuant a contract
that is recorded to the property, and all of the following are satisfied:
a. The nonprofit housing corporation is organized pursuant to Internal Revenue Code
Section 501(c)(3) and has received a welfare exemption under Revenue and
Taxation Code Section 214.15 for properties intended to be sold to low-income
families who participate in a special no-interest loan program;
b. The contract restricts the use of the land for at least thirty (30) years to owner-
occupied housing that is available at an affordable housing cost;
c. The contract includes a deed of trust on the property in favor of the nonprofit
corporation to ensure compliance with the terms of the program, which has no value
unless the owner fails to comply with the covenants and restrictions of the terms of
the home sale;
d. The City Attorney finds that the long-term deed restrictions in the contract serve a
public purpose;
e. A repurchase option that requires a subsequent purchaser of the property that
desires to sell or convey the property to offer the qualified nonprofit corporation the
right to repurchase the property prior to selling or conveying that property to any
other purchaser; and
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f. Affordability restrictions on the sale and conveyance of the property that ensure that
the property will be preserved for lower income housing for at least forty-five (45)
years for owner-occupied housing units and will be sold or resold only to persons or
families of very low, low, or moderate income.
B. Resale. As part of the affordable housing agreement required pursuant to Section
20.32.160, the applicant shall enter into an equity sharing agreement with the City for the
resale of affordable common interest units, unless it would be in conflict with the
requirements of another public funding source or law. In lieu of an equity sharing agreement,
the housing project could sell the units to a nonprofit housing corporation pursuant to
Section 20.32.140(A)(2). The following requirements apply to the equity sharing agreement:
1. Upon resale, the seller of the unit shall retain the value of any improvements, the down
payment, and the seller’s proportionate share of appreciation; and
2. The City shall recapture any initial subsidy and its proportionate share of appreciation,
which shall then be used within five (5) years for any of the purposes described in Health
and Safety Code Section 33334.2(e) that promote home ownership. For the purposes
of this section:
a. The City’s initial subsidy shall be equal to the fair market value of the home at the
time of initial sale, minus the initial sale price, plus the amount of any down payment
assistance or mortgage assistance. If upon resale the market value is lower than the
initial market value, then the value at the time of the resale shall be used as the initial
market value;
b. The City’s proportionate share of appreciation shall be equal to the ratio of the initial
subsidy to the fair market value of the home at the time of initial sale; and
c. The initial subsidy shall include any incentives granted by the City and shall be equal
to the monetary equivalent of the incentives.
20.32.150 Approval Process.
An applicant requesting a density bonus, incentive, concession, or waiver pursuant to this
chapter shall require approval of an Affordable Housing Implementation Plan pursuant to
Sections 20.50.030 and 20.52.015.
20.32.160 Affordable Housing Agreement.
The applicant approved for a density bonus, concession, incentive, or waiver under this
Chapter shall agree to construct, operate and maintain the affordable units in accordance with
an affordable housing agreement. The affordable housing agreement shall be executed in a
recordable form prior to the issuance of a building permit for any portion of a housing
development subject to the requirements of this Chapter. The affordable housing agreement
shall be binding upon all future owners and successors in interest.
A. Review. The terms of the affordable housing agreement shall be reviewed and revised as
appropriate by the Director and City Attorney.
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B. Fees. The City may establish fees associated with the setting up and monitoring of the
affordable units.
C. Contents. The affordable housing agreement shall include at least the following:
1. Identification of Affordable Units. Affordable units shall be identified by address and legal
description, type (floor area, number of bedrooms/baths, unit size, etc.), and designated
household income category. The affordable housing agreement shall also identify the
total number of affordable units and total number of units approved for the housing
development.
2. Term of Affordability. Unless specified elsewhere in this Chapter, a minimum term of
fifty-five (55) years of the specified affordability shall be required. Such reservation
period shall begin on the date a certificate of occupancy is granted for the affordable
units.
3. Maximum Allowable Rent or Sales Price.
a. Rental Housing Developments. In the case of rental housing developments, the
affordable housing agreement shall provide for the following conditions governing
the use of the affordable housing units during the use restriction period:
i. The rules and procedures for qualifying tenants, establishing affordable rent,
filling vacancies, and maintaining the affordable units for qualified tenants.
ii. Provisions requiring owners to verify tenant incomes and maintain books and
records to demonstrate compliance with this chapter.
iii. Provisions requiring owners to submit an annual report to the City, which includes
the name, address and income of each person occupying each affordable unit,
and which identifies the bedroom size and monthly rent or cost of each affordable
unit.
iv. Determination of Rent. A maximum rent schedule shall be submitted to the City
prior to the issuance of an occupancy permit for the affordable units, and updated
annually on the anniversary date of occupancy.
v. Deposit Amount. Total move-in costs for eligible tenants occupying affordable
units shall be limited to first month's rent plus a security/cleaning deposit not to
exceed one month's rent.
vi. Upward Mobility Allowance. When a tenant occupying an affordable unit no
longer qualifies under the income requirements, verified through the monitoring
program required as part of the affordable housing agreement, that tenant may
then be charged market rate rent. If this occurs, any currently vacant unit of
similar type to the affordable unit in question shall then be designated as an
affordable unit, and the owner shall immediately attempt to secure tenants in
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accordance with this chapter. The owner is required to maintain at all times during
the use restriction the minimum number of affordable units identified in the
affordable housing agreement.
vii. Subletting of Affordable Units. No subletting or short-term occupancy of
designated affordable units shall be allowed.
b. Ownership Projects. In the case of for-sale housing developments, as a condition of
approval of the housing development, the City shall require an affordable housing
agreement that includes the following conditions governing the initial sale and use of
affordable units during the applicable use period:
i. Affordable units shall, upon initial sale, be sold to eligible very low- and low-income
households at an affordable sales price and housing cost, or to qualifying
residents in the case of a senior citizen housing development.
ii. Affordable units shall be initially owner-occupied by eligible very low- or low-
income households, or by qualifying residents in the case of a senior citizen
housing development.
iii. The initial purchaser of each affordable housing unit shall execute an instrument
or agreement approved by the City restricting the sale of the affordable housing
unit in accordance with this chapter during the applicable use restriction period.
Such instrument or agreement shall be recorded against the parcel containing the
affordable housing unit and shall contain such provisions as the City may require
to ensure continued compliance with this chapter and State Density Bonus Law.
iv. Sale Clause. The affordable housing agreement shall stipulate that, when the
terms of affordability expire on an affordable unit, the City and/or a non-profit
housing organization shall have a first right of purchase option sixty (60) days prior
to the affordable unit being advertised on the market.
v. Rental of For-Sale Units. Rental of affordable units shall not be allowed.
vi. Monitoring of Compliance to Agreement. A monitoring program shall be required,
specifying the party responsible for certifying tenant incomes and sales price,
maintaining the required number of affordable units and each affordable unit's
property, and marketing and filling unit vacancies.
c. Equity Sharing Agreements. When an equity sharing agreement is required by this
chapter, the affordable housing agreement shall specify the equity sharing
agreement comply with Section 20.32.140.
4. Remedies. Description of remedies for breach of the affordable housing agreement by
either party (the City may identify tenants or qualified purchasers as third-party
beneficiaries under the agreement).
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5. Description of Density Bonus. A description of the incentives and/or concessions, if any,
being provided by the City.
6. Schedule. A schedule for completion and occupancy of the affordable units.
7. Other Provisions. Other provisions to ensure implementation and compliance with this
chapter.
Section 3: Table 5-1 of Subsection B of Section 20.50.030 (Multiple Permit Applications)
of Title 20 (Planning and Zoning) the NBMC is hereby amended to read as follows:
TABLE 5-1
REVIEW AUTHORITY
Type of Action
Applicable
Code
Chapter/Sectio
n
Role of Review Authority (1)
Director
Zoning
Administrat
or
Hearin
g
Officer
Commissio
n
Counci
l (2)
Administrative and Legislative
Interpretations Section
20.12.020
Determinatio
n (3)
Appeal Appeal
Planned
Communities
Chapter 20.56 Recommen
d
Decisio
n
Specific Plans Chapter 20.58 Recommen
d
Decisio
n
Zoning Code
Amendments
Chapter 20.66 Recommen
d
Decisio
n
Zoning Map
Amendments
Chapter 20.66 Recommen
d
Decisio
n
Permits and Approvals
Affordable
Housing
Implementation
Plan
Chapter 20.32 Decision (3)
(4)
Appeal/
Decision (4)
Appeal/
Decisio
n (4)
Comprehensive
Sign Program
Decision (3) Appeal
Conditional Use
Permits
Section
20.52.020
Decision Appeal
Conditional Use
Permits—
Residential
Zones HO
Section
20.52.030
Decisio
n
Appeal
Heritage Sign Decision Appeal
128
TABLE 5-1
REVIEW AUTHORITY
Type of Action
Applicable
Code
Chapter/Sectio
n
Role of Review Authority (1)
Director
Zoning
Administrat
or
Hearin
g
Officer
Commissio
n
Counci
l (2)
Innovative Sign
Program
Decision Appeal
Limited Term
Permits
Section
20.52.040
Decision (3) Appeal Appeal
Minor Use
Permits
Section
20.52.020
Decision (3) Appeal Appeal
Modification
Permits
Section
20.52.050
Decision (3) Appeal Appeal
Planned
Development
Permits
Section
20.52.060
Decision Appeal
Reasonable
Accommodatio
ns
Section
20.52.070
Decisio
n
Appeal
Sign Permits Chapter 20.42 Determinatio
n (3)
Appeal Appeal
Site
Development
Reviews (See
Table 5-2
(Review
Authority for
Site
Development
Reviews))
Section
20.52.080
Decision (3) Decision Appeal
Variances Section
20.52.090
Decision Appeal
Zoning
Clearances
Section
20.52.100
Determinatio
n (3)
Appeal Appeal
Notes:
(1) “Recommend” means that the Commission makes a recommendation to the Council;
“Determination” and “Decision” mean that the review authority makes the final determination
or decision on the matter; “Appeal” means that the review authority may consider and
decide upon appeals to the decision of a previous decision-making body, in compliance
with Chapter 20.64 (Appeals).
(2) The Council is the final review authority for all applications in the City.
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(3) The Director or Zoning Administrator may defer action and refer the request to the
Commission for consideration and final action.
(4) The Zoning Administrator shall be the review authority for density bonus units and
parking reductions. The Planning Commission shall be the review authority for concessions,
incentives and waivers. The City Council shall be the review authority for any financial
incentive or fee waiver.
Section 4: Section 20.52.015 (Affordable Housing Implementation Plan) of Title 20
(Planning and Zoning) the NBMC is hereby added to read as follows:
20.52.015 Affordable Housing Implementation Plan.
A. Purpose. An affordable housing implementation plan (AHIP) provides a process to review
and grant density bonuses, concessions, incentives, and development standard waivers in
compliance with Government Code Section 65915 et seq. and Chapter 20.32.
B. Applicability. An affordable housing implementation plan shall be required for any
application that which proposes a density bonus, concession, incentive, or waiver of
development standard pursuant to Chapter 20.32.
C. Application Contents.
1. A legal description of the project site where the target dwelling units will be located
including a statement of present ownership and present and proposed zoning.
2. A letter signed by the present owner stating what specific density bonus, incentives or
concessions, waivers or modifications in development standards are being requested
from the City and if reduced parking pursuant to Section 20.32.060 is being requested.
3. A detailed vicinity map showing the project location and such details as the location of
the nearest commercial retail, transit stop, potential employment locations, park or
recreation facilities or other social or community service facilities.
4. Site plans, floor plans, and building elevations, which shall designate the total number
of units proposed on the site, including the number and location of target dwelling units
and density bonus dwelling units, and supporting plans per the application submittal
requirements.
5. If the project site contains existing dwelling units, a description of the existing dwelling
units. This shall include the number of units, whether owner-occupied or rentals, the
number of bedrooms in each of the units, and evidence to household income of
occupants for the previous five (5) years.
6. In the case of a request for any incentive or concession, evidence that the request will
result in identifiable and actual cost reductions.
7. In the case of a request for a waiver or reduction of development standards, evidence
that the development standard being waived or reduced will have the effect of physically
precluding the construction of the development at the densities proposed.
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D. Application Filing, Processing, and Review. An application for an affordable housing
implementation plan shall be filed and processed in compliance with Chapter 20.50 (Permit
Application Filing and Processing). The application shall include all of the information and
materials specified in Section 20.52.015(C), together with the required fee in compliance
with the City’s fee schedule adopted by resolution.
E. Project Review and Notice and Hearing Requirements. Notice of the public hearing shall be
provided and the hearing shall be conducted in compliance with Chapter 20.62 (Public
Hearings).
F. Findings. The review authority shall approve an affordable housing implementation plan,
unless at least one finding for denial is made pursuant to Sections 20.32.070(A),
20.32.080(A), or 20.32.090(C).
G. Post-Decision Procedures. The procedures and requirements in Chapter 20.54 (Permit
Implementation, Time Limits, and Extensions), and those related to appeals and revocation
in Part 6 of this title (Zoning Code Administration) shall apply following the decision on a
affordable housing implementation plan application.
Section 5: Newport Beach Municipal Code (NBMC) Section 20.70.020 is hereby amended
to amend the following definitions to read as follows:
“Density bonus” See Section 20.32.020. means, as defined by Government Code
Section 65915 et seq., an increase over the maximum density otherwise allowed by the applicable
zoning district that is granted to the owner/developer of a housing project who agrees to construct
a prescribed percentage of dwelling units that are affordable to very-low- and low-income
households. See “Very low-income household” and “Low-income household.”
“Extremely low-income household” means persons and families whose income does not exceed
thirty (30) percent of the area median income for Orange County, as published by the California
Department of Housing and Community Development, adjusted for family size and revised
annually.
“Low-income household” means persons and families whose income is greater than fifty (50)
percent but does not exceed eighty (80) percent of the area median income for Orange County,
as published by the California Department of Housing and Community Development, adjusted for
family size and revised annually. a household whose income is between fifty (50) percent and
eighty (80) percent of the Orange County median income (“Area median income”), adjusted for
actual household size, as determined by the California Department of Housing and Community
Development.
“Moderate-income household” means persons and families whose income is greater than eighty
(80) percent but does not exceed one hundred twenty (120) percent of the area median income
for Orange County, as published by the California Department of Housing and Community
Development, adjusted for family size and revised annually. a household whose income is
between eighty (80) percent and one hundred twenty (120) percent of the Orange County median
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income (“Area median income”), adjusted for actual household size, as determined by the
California Department of Housing and Community Development..
“Very low-income household” means persons and families whose income is greater than thirty
(30) percent but does not exceed fifty (50) percent of the area median income for Orange County,
as published by the California Department of Housing and Community Development, adjusted for
family size and revised annually. a household whose income is fifty (50) percent or less of the
Orange County median income (“Area Median Income”), adjusted for actual household size, as
determined by the California Department of Housing and Community Development.
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Underline/Strikeout Version of Title 21 (Local Coastal Program Implementation Plan)
Revisions
Local Coastal Program Amendment No. LC2020-004
Section 1: Subsection C(1) of Section 21.12.020 (Rules of Interpretation) of Chapter 21.12
(Interpretation of Implementation Plan Provisions) of Title 21 (Local Coastal Program
Implementation Plan) the NBMC is hereby amended to read as follows:
C. Calculations.
1. Residential Density. When Except for projects that include a density bonus in accordance
with Section 21.32.040(A), when the number of dwelling units allowed on a site is
calculated based on the minimum site area per dwelling unit, any fraction of a unit shall be
rounded down to the next lowest whole number. For example, where a residential zoning
district requires a minimum site area per dwelling unit of one thousand five hundred (1,500)
square feet; a site of ten thousand (10,000) square feet would be allowed six dwelling units
(10,000 sq. ft/1,500 sq. ft. per dwelling unit = 6.66 dwelling units, which is rounded down
to six (6) dwelling units).
Example: Ten thousand (10,000) sq. ft. site area/one thousand five hundred (1,500) sq. ft.
per unit = 6.66 dwelling units. This would be rounded down to six dwelling units.
Section 2: Chapter 21.32 (Density Bonus) of Title 21 (Interpretation of Implementation
Plan Provisions) the NBMC is hereby added, which shall read as follows:
Chapter 21.32
Density Bonus
Sections:
21.32.010 Purpose.
21.32.021 Definitions.
21.32.030 Eligibility for Density Bonus and Incentives.
21.32.040 General Requirements.
21.32.050 Allowed Density Bonuses.
21.32.060 Parking Requirements in Density Bonus Projects.
21.32.070 Allowed Incentives or Concessions.
21.32.080 Waivers and Reductions of Development Standards.
21.32.090 Incentives for Housing with Child Care Facilities.
21.32.100 Condominium Conversions.
21.32.110 Design and Distribution of Affordable Units.
21.32.121 Replacement Units.
21.32.130 Continued Availability.
21.32.140 Occupancy and Resale of Ownership Units.
21.32.150 Approval Process.
21.32.160 Affordable Housing Agreement.
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21.32.010 Purpose.
The purpose of this chapter is to provide a means for granting density bonuses and incentives
in compliance with Government Code Sections 65915 through 65918 as the same may be
amended from time to time. This chapter provides regulations for considering density bonus
and incentive requests for the development of housing that is affordable to lower-, low-, and
moderate-income households, foster youth, disabled veterans, homeless persons, lower-
income students, senior citizens, and childcare.
21.32.020 Definitions.
As used in this chapter, the following words shall have the following meanings:
A. “Affordable Housing” means housing for which the allowable housing expenses paid by a
qualifying household shall not exceed a specified fraction of the county median income,
adjusted for household size. This includes housing designated for extremely low-, very low,
low-, and moderate-income households.
B. “Childcare Facility” means a child day care facility, other than a family day care home,
including, but not limited to, infant centers, preschools, extended day care facilities, and
school-age childcare center. “Childcare facility” does not include public or private primary
or secondary education facilities.
C. “Condominium Conversion” means the conversion of apartments, or other rental units, into
ownership property that consist of an undivided interest in common in a portion of real
property coupled with a separate interest within the boundaries of the dwelling unit.
D. “Density Bonus” means a density increase over the maximum allowable residential density
under applicable zoning and Land Use Element of the General Plan as of the date of
application.
E. “Development Standard” means a site or construction condition, including, but not limited
to, a height limitation, setback requirement, floor area ratio, an onsite open-space
requirement, or a parking ratio that applies to a housing development pursuant to any
ordinance, general plan policy, specific plan, or other local condition, law, policy, resolution,
or regulation. Development standard shall not mean an impact fee, inclusionary housing
requirement, or dedication of land.
F. “Disabled Veteran” means any veteran who is currently declared by the United States
Veterans Administration to be ten (10) percent or more disabled as a result of service in the
armed forces. Proof of such disability shall be deemed conclusive if it is of record in the
United States Veterans Administration.
G. “Equivalent Financial Value” means an incentive that would result in a reduction in cost to
the developer/property owner based upon the land cost per dwelling unit and shall be
calculated based upon the difference in the value of the land with and without the density
bonus.
H. “Equivalent Size” means that the replacement units specified in Section 21.32.120 contain
at least the same total number of bedrooms as the units being replaced.
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I. “Foster Youth” means a person in California whose dependency was established or
continued by a court of competent jurisdiction, including a tribal court, on or after the youth's
13th birthday and who is no older than 25 years of age at the commencement of the
academic year.
J. “Homeless Person” shall have the same meaning as that phrase is defined in Section 11302
of the federal McKinney-Vento Homeless Assistance Act (42U.S.C. Ch. 119).
K. “Housing Development” means a development project for five (5) or more residential
dwelling units, including mixed-use developments, subdivisions, or common interest
development. A “housing development” may consist of residential units, unimproved
residential lots, a project to substantially rehabilitate and convert an existing commercial
building to residential use, or the substantial rehabilitation of an existing multifamily dwelling
where the result of the rehabilitation would result in a net increase in available residential
units. For purposes of calculating a density bonus, the residential units shall be on
contiguous sites that are the subject of one (1) development application but may include
more than one subdivision map.
L. “Lower Income Student” means a student who has a household income and asset level that
does not exceed the level for Cal Grant A or Cal Grant B award recipients as set forth
Education Code Section 69432.7(k)(1). The eligibility of a student to occupy a unit for lower
income students under this section shall be verified by an affidavit, award letter, or letter of
eligibility provided by the institution of higher education in which the student is enrolled or
by the California Student Aid Commission that the student receives or is eligible for financial
aid, including an institutional grant or fee waiver from the college or university, the California
Student Aid Commission, or the federal government.
M. “Major Transit Stop” means a site containing an existing rail transit station or the intersection
of two (2) or more major bus routes with a frequency of service interval of fifteen (15)
minutes or less at the intersection of the two (2) routes during both the morning and
afternoon peak commute hours.
N. “Natural or Constructed Impediments” means a hindrance or obstruction that prevents
pedestrian or bicycle access to a major transit stop. Natural or constructed impediments
include, but are not limited to, freeways, rivers, mountains, harbors, and bodies of water,
but does not include residential structures, shopping centers, parking lots, or rails used for
transit.
O. “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 the application was deemed complete. The following
shall not constitute a specific, adverse impact upon the public health or safety: (1)
inconsistency with the zoning ordinance or general plan land use designation, or (2) the
eligibility to claim a welfare exemption under subdivision (g) of Section 214 of the Revenue
and Taxation Code.
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P. “Transitional Foster Youth” means a person whose dependency was established or
continued by the court on or after the youth’s 16th birthday and who is no older than 25
years of age at the commencement of the academic year.
Q. “Unobstructed Access” means a major transit stop that the income qualified resident of the
housing development is able to walk or bike to from the residence without encountering
natural or constructed impediments, which include, but are not limited to, freeways, rivers,
mountains, harbors and other bodies of water, but does not include residential structures,
shopping centers, parking lots, or rails used for transit with legal pedestrian access through
the property.
21.32.025 Costal Act Consistency
A. California Government Code Section 69515(m) provides that density bonus law shall not
be construed to supersede or in any way alter or lessen the effect or application of the
California Coastal Act of 1976.
B. A requested density bonus and any requested incentive, concession, waiver, modification,
or modified parking standard shall comply with all applicable standards and use regulations
of the certified Local Coastal Program Implementation Plan, with the exception of the
development standards waived, reduced, or modified through density bonus provisions. In
no case shall the coastal resource protection development regulations of Sections
21.28.040 (Bluff (B) Overlay District), 21.28.050 (Canyon (C) Overlay District), 21.28.015(D)
(Waterfront Development), 21.30.015(E)(2) (Development in Shoreline Hazardous Areas)
and 21.30.100 (Scenic and Visual Quality Protection), or Chapters 21.30A (Public Access
and Recreation) Chapter 21.30B (Habitat Protection) be waived, reduced, or modified.
21.32.030 Eligibility for Density Bonus and Incentives.
In order to be eligible for a density bonus, incentive(s) or concession(s), or waiver or reduction
of development standard(s) as provided by this chapter, a housing development or
condominium conversion shall comply with the following requirements and satisfy all other
applicable provisions of this Local Coastal Program Implementation Plan, except as otherwise
provided by this Chapter.
A. Eligibility Requirements. A housing development shall include only one (1) of the following:
1. A minimum of five (5) percent of the total number of units of a housing development as
restricted and affordable to very low-income households.
2. A minimum of ten (10) percent of the total number of units of a housing development as
restricted and affordable to low-income households.
3. A minimum of ten (10) percent of the total units in a for-sale housing development as
restricted and affordable to moderate-income households provided that all units in the
housing development are offered to the public for purchase.
4. One hundred (100) percent of all units in a housing development, exclusive of a
manager’s unit or units, as restricted and affordable to lower-income households, except
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that no more than twenty (20) percent of the units in the development, including total
units and density bonus units, may be affordable to moderate-income households.
5. A minimum of ten (10) percent of the total units of a housing development project for
transitional foster youth, disabled veterans, or homeless persons provided at the same
affordability level as very low-income units.
6. A minimum of twenty (20) percent of the total units of a housing development are
affordable to lower-income college students.
7. A condominium conversion project where either thirty-three (33) percent of the units
converted are affordable to low- or moderate-income households, or fifteen (15) percent
of the units converted are affordable to very low- or extremely low-income households.
8. A senior citizen housing development as defined in Civil Code Sections 51.3 and 51.12
that has at least thirty-five (35) dwelling units or a mobile home park that limits residency
based on age requirements for housing older persons in compliance with Civil Code
Sections 798.76 or 799.5.
9. The applicant for a housing development project donates at least one (1) acre of land to
the City of Newport Beach for very low-income units, provided the land has the
appropriate general plan designation, zoning, permits and approvals, and access to
public facilities needed for such housing.
B. Housing Development Not Eligible for a Density Bonus, Concession, Incentive, or Waiver.
A housing development shall not be eligible for a density bonus, or any incentive,
concession, or waiver of a development standard under this Chapter on a property
containing existing affordable housing unless:
1. The housing development replaces the existing affordable units in accordance with all
of the requirements set forth in Section 21.32.120; and
2. The housing development, inclusive of the units replaced pursuant to this paragraph,
contains affordable units at least one (1) of the percentage levels set forth in Section
21.32.030(A).
21.32.040 General Requirements.
A. Fractional Units. The calculation of a density bonus in compliance with this section that
results in fractional units, including base density and bonus density, shall be rounded up to
the next whole number.
B. Mixed Income Development. If a housing development qualifies for a density bonus under
more than one (1) income category; as senior housing; or as housing intended to serve
transitional foster youth, disabled veterans, or homeless persons; the applicant shall select
only one (1) of the above categories in the application. Density bonuses from more than
one (1) category may not be combined.
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C. General Plan & Zoning Consistency. The granting of a density bonus, in and of itself, shall
not be interpreted as requiring a General Plan amendment, Zoning Map amendment, or
other discretionary approval.
D. Financial Incentives. The provisions of this Chapter shall not be interpreted to require or
limit the City from providing direct financial incentives, including the provision of publicly
owned land or the waiver of fees or dedication requirements.
E. Increased Density Limit. A housing development shall not exceed the cumulative total of
base units allowed by the underlying zone and the bonus density units allowed by Section
21.32.050. Incentives, concessions, or development standard waivers shall not be used to
increase density.
F. Reduced Density. An applicant for a Density Bonus may elect to provide a lesser
percentage of density increase than what is allowed authorized by Section 21.32.050
including, but not limited to, no increase in density, but shall remain eligible for concessions
or incentives, waivers of development standards, and eligible parking requirements
provided the project meets the eligibility requirements of this Section.
21.32.050 Allowed Density Bonuses.
A housing development that complies with one (1) of the eligibility levels in Section 21.32.030
is entitled to a density bonus as follows, unless a lesser percentage is proposed by the
applicant.
A. Density Bonus for Very Low, Low, and Moderate-Income Households. A housing
development that is eligible for a density bonus pursuant to Section 21.32.030(A)(1) through
Section 21.32.030(A)(4) is entitled to a density bonus calculated as follows:
TABLE 21.32-1
VERY LOW, LOW, AND MODERATE-
Density Bonus Percentage
Percentage of
Base
Units Proposed
Very Low Income Low Income Moderate Income
5% 20% - -
6% 22.5% - -
7% 25% - -
8% 27.5% - -
9% 30% - -
10% 32.5% 20% 5%
11% 35% 21.5% 6%
12% 38.75% 23% 7%
13% 42.5% 24.5% 8%
14% 46.25% 26% 9%
15% 50% 27.5% 10%
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16% 50% 29% 11%
17% 50% 30.5% 12%
18% 50% 32% 13%
19% 50% 33.5% 14%
20% 50% 35% 15%
21% 50% 38.75% 16%
22% 50% 42.5% 17%
23% 50% 46.25% 18%
24% 50% 50% 19%
25% 50% 50% 20%
26% 50% 50% 21%
27% 50% 50% 22%
28% 50% 50% 23%
29% 50% 50% 24%
30% 50% 50% 25%
31% 50% 50% 26%
32% 50% 50% 27%
33% 50% 50% 28%
34% 50% 50% 29%
35% 50% 50% 30%
36% 50% 50% 31%
37% 50% 50% 32%
38% 50% 50% 33%
39% 50% 50% 34%
40% 50% 50% 35%
41% 50% 50% 38.75%
42% 50% 50% 42.5%
43% 50% 50% 46.25%
44% 50% 50% 50%
100% 80% 80% 80%
Notwithstanding the foregoing, a cap on density will not apply if both of the following conditions
are met:
1. One hundred (100) percent of the units in a housing development exclusive of a
manager’s units, are restricted and affordable to very-low and low-income households,
except that no more than twenty (20) percent of the total units (including density bonus
units) in the housing development are restricted and affordable to moderate-income
households.
2. The housing development is located within one-half mile of a major transit stop with
unobstructed access.
B. Density Bonus for Transitional Foster Youth, Disabled Veterans, or Homeless Persons. A
housing development that is eligible for a density bonus at the level set forth in Section
21.32.030(A)(5) shall be entitled to a density bonus of twenty (20) percent.
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C. Density Bonus for Lower Income College Students. A student housing development that is
eligible for a density bonus at the level set forth in Section 21.32.030(A)(6) shall be entitled
to a density bonus of thirty-five (35) percent.
1. All units in the student housing development will be used exclusively for undergraduate,
graduate, or professional students enrolled full-time at an institution of higher education
accredited by the Western Association of Schools and Colleges or the Accrediting
Commission for Community and Junior Colleges.
2. The applicant or property owner shall provide evidence to the City that the housing
development shall be subject to an operating agreement or lease with one (1) or more
institution of higher education that all units shall be exclusively occupied by the students
of the institution(s).
3. The rent for affordable units shall be calculated at thirty (30) percent of sixty-five (65)
percent of the area median income for a single-room occupancy unit.
4. Priority for the affordable units shall be given to lower income students experiencing
homelessness. A homeless service provider, as defined in paragraph (3) of subdivision
(e) of Section 103577 of the Health and Safety Code, or institution of higher education
that has knowledge of a person’s homeless status may verify a person’s status as
homeless for purposes of this subsection.
5. For purposes of calculating a density bonus granted pursuant to this section, the term
“unit” shall mean one (1) rental bed and its pro rata share of associated common area
facilities.
D. Density Bonus for Condominium Conversion. A condominium conversion that is eligible for
a density bonus pursuant to Section 21.32.030(A)(7) shall be entitled to a density bonus of
twenty-five (25) percent provided the condominium conversion meets all of the
requirements in Section 20.32.100.
E. Density Bonus for Senior Housing. A senior housing development that is eligible for a
density bonus pursuant to Section 21.32.030(A)(8) shall be entitled to a density bonus of
twenty (20) percent.
F. Density Bonus for donating land for very low-income units. A housing development that
includes the donation of land for the development of very low-income housing pursuant to
Section 21.32.030(A)(9) is entitled to a density bonus calculated as follows:
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TABLE 21.32-2
LAND DEDICATED TO ACCOMMODATE VERY LOW-INCOME
Percentage of
Base
Units Proposed
Density Bonus
Percentage
10% 15%
11% 16%
12% 17%
13% 18%
14% 19%
15% 20%
16% 21%
17% 22%
18% 23%
19% 24%
20% 25%
21% 26%
22% 27%
23% 28%
24% 29%
25% 30%
26% 31%
27% 32%
28% 33%
29% 34%
30% 35%
1. Any increase authorized by this subsection may be approved in addition to any increase
in density allowed by Section 21.32.030 up to a maximum combined density increase of
thirty-five (35) percent.
2. The donated land shall be the greater of:
a. One (1) acre;
b. Sufficient square-footage or acreage to permit development of the percentage of
base units proposed; or
c. Sufficient square-footage or acreage to permit development of forty (40) units
under the existing general plan and zoning designation.
3. The existing general plan and zoning designation of the donated land shall is zoned to
accommodate at least 30 dwelling units per acre and is served by adequate public
facilities and infrastructure or will be served by adequate public facilities and
infrastructure by the housing development.
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4. The land shall be donated and transferred to the City or a housing developer that is
approved by the City. The applicant shall donate and transfer the land no later than the
date of approval of the final subdivision map, or issuance of building permits for a
housing development where no subdivision is required.
5. The City shall not approve the final subdivision map or issue building permits for the
housing development unless and until all permits, other than building permits, for the
development of very low-income housing have been issued for the donated and
transferred land.
6. The donated and transferred land shall be within the boundary of the housing
development, or upon approval of the reviewing authority, within one-quarter (1/4) mile
of the boundary of the housing development.
7. The source of funding for the development of very low-income housing on the donated
and transferred land shall be identified not later than the date of approval of the final
subdivision map or issuance of building permits for the housing development.
8. The donated and transferred land and the affordable units shall be subject to a deed
restriction recorded on the property at the time of transfer ensuring continued
affordability of the units consistent with Section 21.32.130.
21.32.060 Parking Requirements in Density Bonus Projects.
A. Applicability. For a housing development that meets one (1) of the eligibility levels in Section
21.32.030, the applicant may request application of the parking requirements set forth
herein. An applicant may request additional parking incentives beyond those provided in
this section in compliance with Sections 21.32.070 and 21.32.080.
B. Number of Parking Spaces Required.
1. Parking Ratios. At the request of the applicant, the following minimum parking ratios
apply to the housing development:
Dwelling Unit Size Onsite Parking per
Unit
Studio to 1 Bedroom 1 space
2 to 3 Bedrooms 1.5 spaces
4 or more Bedrooms 2.5 spaces
2. Within One-Half Mile (½) of Major Transit Stop. Notwithstanding subsection B(1), if a
housing development provides at least twenty (20) percent low-income units or eleven
(11) percent very low-income units and is located within one-half (½) mile of a major
transit stop with unobstructed access; then upon the request of the developer, the City
may not impose a vehicular parking ratio, inclusive of handicapped and guest parking,
that exceeds 0.5 spaces per bedroom.
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3. Zero Parking. Notwithstanding subsection B(1), if a housing development consists
solely of rental units affordable to lower income families; then upon the request of the
developer, the City may not impose a vehicular parking ratio, inclusive of handicapped
and guest parking, if either of the following criteria are met:
a. The housing development is located within one-half (½) mile of a major transit
stop with unobstructed access from the housing development;
b. The housing development is a for-rent housing development for individuals who
are 62 years of age or older that meet the definition in Sections 51.2 and 51.3 of
the Civil Code and the housing development has either paratransit service or
unobstructed access within one-half (½) mile to a fixed bus route that operates
at least eight (8) times per day; or
c. The housing development is either a special needs housing development, as
defined in Section 51312 of the Health and Safety Code, or supportive housing
development as defined in Section 50675.14 of the Health and Safety Code, and
the housing development has either paratransit service or unobstructed access
within one-half mile of a fixed bus route that operates at least eight (8) times per
day.
4. Notwithstanding paragraphs (2) and (3), if the City or an independent consultant has
conducted an areawide or jurisdiction-wide parking study in the last seven (7) years,
then the City may impose a higher vehicular parking ratio not to exceed the ratio
described in paragraph (1), based upon substantial evidence found in the parking
study, that includes, but is not limited to, an analysis of parking availability, differing
levels of transit access, walkability access to transit services, the potential for shared
parking, the effect of parking requirements on the cost of market-rate and subsidized
developments, and the lower rates of car ownership for low-income and very low
income individuals, including seniors and special needs individuals.
C. Location of Parking. For purposes of this section, a housing development may provide on-
site parking through uncovered or tandem parking, but not through on-street parking.
D. Rounding of Partial Parking Spaces. If the total number of parking spaces required for a
housing development is other than a whole number, the number shall be rounded up to the
next whole number.
21.32.070 Allowed Incentives or Concessions.
A. Applicant Request and City Approval. The applicant shall include any request for
incentive(s) or concession(s) listed in subsection (C) of this section concurrently with the
application for project approval. The applicant shall provide documentation establishing that
an incentive or concession is necessary to make the housing units economically feasible.
When an applicant makes a request for an incentive or concession, the review authority
shall grant the request unless one or more of the following findings is made, based on
substantial evidence:
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1. The incentive or concession is not required in order to provide affordable housing
costs or for rents for the targeted units to be set as specified in Section 21.32.130(B);
2. The incentive or concession would have a specific adverse impact upon public health
and safety, or on any real property listed in the California Register of Historical
Resources and for which there is no feasible method to satisfactorily mitigate or avoid
the specific adverse impact without rendering the development unaffordable to low-
and moderate-income households; or
3. The incentive would be contrary to state or federal law.
B. Number of Incentives or Concessions. Except as provided in subsection (A) of this section,
the review authority shall grant the following number of incentives or concessions:
1. One (1) incentive or concession for a housing development that includes at least ten
(10) percent of the total units for low-income households, at least five (5) percent of the
total units for very low-income households, at least twenty (20) of the total units for low-
income students in a student housing development, or at least ten (10) percent of the
total units for persons and families of moderate income in a for-sale housing
development.
2. Two (2) incentives or concessions for a housing development that includes at least
seventeen (17) percent of the total units for low-income households, at least ten (10)
percent of the total units for very low-income households, or at least twenty (20) percent
of the total units for persons and families of moderate income in a for-sale housing
development.
3. Three (3) incentives or concessions for a housing development that includes at least
twenty-four (24) percent of the total units for low-income households, at least fifteen (15)
percent of the total units for very low-income households, or at least thirty (30) percent
of the total units for persons and families of moderate income in a for-sale housing
development.
4. Four (4) incentives or concession for projects that meet the criteria of Section
21.32.030(A)(4). If the housing development is located within one-half (½) mile of a
major transit stop with unobstructed access, the housing development is eligible for a
height increase of up to three (3) additional stories, or thirty-three (33) feet.
C. Type of Incentive or Concession. For the purposes of this chapter, “incentive” or
“concession” mean any of the following:
1. A reduction in the development standards, including but not limited to, a height limitation,
a setback requirement, a floor area ratio, an open space requirement, or parking ratio
(in excess of the provisions identified in Section 21.32.060), or architectural design
requirements that exceed the minimum building standards approved by the California
Building Standards Commission in compliance with Health and Safety Code Section
18901 et seq., that would otherwise be required, that results in identifiable, financially
sufficient, and actual cost reductions;
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2. A mixed-use project in conjunction with the housing development, if the nonresidential
portion of the mixed-use project will reduce the cost of the housing development; is
compatible with the residential portion of the housing development; and is compatible
with adjacent existing or planned development;
3. A reduction or waiver of any City imposed fee or dedication of land. Approval of a fee
reduction or waiver of fee and/or dedication of land shall be at the sole discretion of the
City Council and is not required to be approved; and/or
4. Other regulatory incentives that will result in identifiable, financially sufficient, and actual
cost reductions.
21.32.080 Waivers or Reductions of Development Standards.
In addition to requesting an incentive or concession, an applicant for a density bonus may also
submit a proposal to the City to waive or reduce an unlimited number of development standards
that would otherwise preclude or inhibit construction of the housing development at the
densities or with the incentives permitted by this Chapter.
A. When an applicant makes a request for a waiver, the review authority shall grant the request
unless, based on substantial evidence, any of the following findings are made:
1. The waiver or reduction of development standards would have a specific adverse impact
upon public health or safety, and for which there is no feasible method to satisfactorily
mitigate or avoid the specific adverse impact.
2. The waiver or reduction of development standards would have an adverse impact on
any real property listed in the California Register of Historical Resources.
3. The waiver or reduction of development standards would be contrary to state or federal
law.
B. Notwithstanding Section 21.32.080(A), a housing development that is eligible for no cap on
density pursuant Section 21.32.050(A) shall only be eligible for a waiver or reduction of
development standards as provided in Section 21.32.070(B)(4), unless the review authority
grants additional waivers or reductions.
21.32.090 Incentives for Housing with Child Care Facilities.
A housing development that complies with the income requirements of Section 21.32.030(A)
and also includes a childcare facility, other than a large or small family day care home, that will
be located on the same site as the development, shall be eligible for the following incentives in
addition to the incentives provided for the affordable housing.
A. Incentives. The City shall grant a housing development that includes a childcare facility
either of the following incentives:
1. An amount of residential floor area equal to or greater than the floor area of the childcare
facility; or
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2. An incentive that contributes to the economic feasibility of the childcare facility (e.g.,
reduction of development standards, reduced parking requirements, monetary
contribution) as provided in Section 21.32.070(C).
B. Requirements to Qualify for Incentives. The City shall require, as a condition of approving
the housing development, that:
1. The childcare facility shall remain in operation for a period of time that is as long as or
longer than the period of time during which the density bonus units are required to
remain affordable in compliance with Section 21.32.130; and
2. Of the children who attend the childcare facility, the children of very low-income
households, low-income households, or families of moderate income shall equal a
percentage that is equal to or greater than the percentage of dwelling units that are
required for very low-income households, lower-income households, or families of
moderate income in compliance with Section 21.30.030(A).
C. Incentive Not Required. The City shall not be required to provide a density bonus for a
childcare facility if it finds, based upon substantial evidence, that the community has
adequate childcare facilities.
21.32.100 Condominium Conversions.
A. Density Bonus. When an applicant proposes to convert apartments to condominiums, which
meet the eligibility level in Section 21.32.030(A)(7), the City shall grant either a density
bonus of up to twenty-five (25) percent pursuant to Section 21.32.050(D) to create additional
units on the project site or other incentive of equivalent financial value provided:
1. The applicant agrees to pay for the reasonably necessary administrative costs,
including, but is not limited to, staff costs, consultant fees, photocopy costs, and mailing
fees, incurred by the City; and
2. The City places such reasonable conditions on the granting of a density bonus or other
incentives of equivalent financial value as it finds appropriate, including, but not limited
to, conditions which assure continued affordability of units to subsequent purchasers
who are persons and families of very low-, low- and moderate-income households.
B. Replacement Units. All units within the condominium conversion shall meet the replacement
requirements in Section 21.32.121.
C. Ineligible Requests. Apartments which are proposed for conversion to condominiums shall
be ineligible for a density bonus or other incentive under the section if the apartments were
previously granted a density bonus, concession, incentives, or waiver or reduction of
development standards.
D. Preapplication Process. An applicant may submit to the City a preliminary application for
the condominium conversion on a form provided by the Director prior to the submittal of an
application under Chapters 19.08 and 19.64. Within ninety (90) days of receipt of the
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preliminary application, the City shall notify the applicant in writing whether the application
is eligible for a condominium conversion pursuant to this section.
E. Approval. An application for condominium conversion shall meet the requirements set forth
in Chapter 19.64. Nothing in this section shall be construed to require the City to approve
an application for a condominium conversion.
21.32.110 Design and Distribution of Affordable Units.
Affordable units shall be designed and distributed within the housing development as follows:
A. Number of Bedrooms. Affordable units shall reflect the range of numbers of bedrooms
provided in the residential development project as a whole;
B. Comparable Quality and Facilities. Affordable units shall be comparable in the facilities
provided (e.g., laundry, recreation, etc.) and in the quality of construction and exterior
design to the market-rate units;
C. Access. In mixed-income multi-unit structures, the occupants of the affordable housing units
shall have the same access to common entrances and any common areas including parking
areas in that structure as the occupants of the market-rate housing units;
D. Size. Affordable units may be smaller and have different interior finishes and features than
the market-rate units; and
E. Location. Affordable units shall be distributed within the residential development, unless
clustering is allowed by the review authority. Notwithstanding, in a mixed-income multi-unit
structure, affordable units shall not be isolated to a specific floor or an area of a specific
floor.
21.32.120 Replacement Units.
An application for a density bonus on any property with existing rental dwelling units or rental
dwelling units that were vacated or demolished within the five (5) years preceding the
application; and are/were subject to a recorded covenant that restricts rents to very low- or low-
income households, or are/were occupied by very low- or low-income household shall be
subject to the following:
A. Occupied Units. For rental dwelling units that are occupied on the date of the application,
the housing development shall provide at least the same number of affordable units of
equivalent size to be made available at affordable rent or affordable housing cost to, and
occupied by, persons or families in the same or lower income category as those households
in occupancy.
B. Vacant or Demolished Units. For rental dwelling units that have been vacated or demolished
within the five (5) years preceding the application, the housing development shall provide
at least the same number of affordable units of equivalent size as existed at the highpoint
of those units in the five (5) years preceding the application to be made available at
affordable rent or affordable housing cost to, and occupied by, persons and families in the
same or lower income category as those persons and families in occupancy at that time.
147
C. Unknown Household Income. If the income of the existing occupants or occupants within
the past five (5) years is unknown to the City or the applicant, it shall be rebuttably presumed
that the rental dwellings units were occupied by low-income and very low-income renter
households as determined by the most recently available data from the United States
Department of Housing and Urban Development’s Comprehensive Housing Affordability
Strategy database.
21.32.130 Continued Availability.
The units that qualified the housing development for a density bonus and other incentives shall
continue to be available as affordable and/or senior units in compliance with the following
requirements:
A. Duration of Availability. The applicant shall agree to, and the City shall ensure the continued
availability of the units that qualified the housing development for a density bonus and other
incentives for at least fifty-five (55) years, or a longer time if required by the construction or
mortgage financing assistance program, mortgage insurance program, or rental subsidy
program.
B. Affordable Costs. The rents and owner-occupied costs charged for the housing units shall
not exceed the following amounts during the period of continued availability required by this
section:
1. Rental Units. Rents for density bonus units shall be set at an affordable rent as defined
in Health and Safety Code Section 50053; and
2. Owner-Occupied Units. Owner-occupied units shall be available at an affordable
housing cost as defined in Health and Safety Code Section 50052.5.
21.32.140 Occupancy and Resale of Ownership Units.
A housing development that includes for-sale units that are restricted and affordable to
moderate-income households shall limit the occupancy and resale of the units as follows.
A. Occupancy. The initial occupants of a for-sale unit, which qualified the applicant for the
award of the density bonus, meets either of the following conditions:
1. The unit is initially occupied by a person or family of very low, low, or moderate income,
as required, and it is offered at an affordable housing cost, as that cost is defined in
Section 50052.5 of the Health and Safety Code and is subject to an equity sharing
agreement.
2. The unit is purchased by a qualified nonprofit housing corporation pursuant a contract
that is recorded to the property, and all of the following are satisfied:
a. The nonprofit housing corporation is organized pursuant to Internal Revenue Code
Section 501(c)(3) and has received a welfare exemption under Revenue and
Taxation Code Section 214.15 for properties intended to be sold to low-income
families who participate in a special no-interest loan program;
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b. The contract restricts the use of the land for at least thirty (30) years to owner-
occupied housing that is available at an affordable housing cost;
c. The contract includes a deed of trust on the property in favor of the nonprofit
corporation to ensure compliance with the terms of the program, which has no value
unless the owner fails to comply with the covenants and restrictions of the terms of
the home sale;
d. The City Attorney finds that the long-term deed restrictions in the contract serve a
public purpose;
e. A repurchase option that requires a subsequent purchaser of the property that
desires to sell or convey the property to offer the qualified nonprofit corporation the
right to repurchase the property prior to selling or conveying that property to any
other purchaser; and
f. Affordability restrictions on the sale and conveyance of the property that ensure that
the property will be preserved for lower income housing for at least forty-five (45)
years for owner-occupied housing units and will be sold or resold only to persons or
families of very low, low, or moderate income.
B. Resale. As part of the affordable housing agreement required pursuant to Section
21.32.160, the applicant shall enter into an equity sharing agreement with the City for the
resale of affordable common interest units, unless it would be in conflict with the
requirements of another public funding source or law. In lieu of an equity sharing agreement,
the housing project could sell the units to a nonprofit housing corporation pursuant to
Section 21.32.140(A)(2). The following requirements apply to the equity sharing agreement:
1. Upon resale, the seller of the unit shall retain the value of any improvements, the down
payment, and the seller’s proportionate share of appreciation; and
2. The City shall recapture any initial subsidy and its proportionate share of appreciation,
which shall then be used within five (5) years for any of the purposes described in Health
and Safety Code Section 33334.2(e) that promote home ownership. For the purposes
of this section:
a. The City’s initial subsidy shall be equal to the fair market value of the home at the
time of initial sale, minus the initial sale price, plus the amount of any down payment
assistance or mortgage assistance. If upon resale the market value is lower than the
initial market value, then the value at the time of the resale shall be used as the initial
market value;
b. The City’s proportionate share of appreciation shall be equal to the ratio of the initial
subsidy to the fair market value of the home at the time of initial sale; and
c. The initial subsidy shall include any incentives granted by the City and shall be equal
to the monetary equivalent of the incentives.
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21.32.150 Approval Process.
An applicant requesting a density bonus, incentive, concession, or waiver pursuant to this
chapter shall require approval of an Affordable Housing Implementation Plan pursuant to
Sections 20.50.030 and 20.52.015.
21.32.160 Affordable Housing Agreement.
The applicant approved for a density bonus, concession, incentive, or waiver under this
Chapter shall agree to construct, operate and maintain the affordable units in accordance with
an affordable housing agreement. The affordable housing agreement shall be executed in a
recordable form prior to the issuance of a building permit for any portion of a housing
development subject to the requirements of this Chapter. The affordable housing agreement
shall be binding upon all future owners and successors in interest.
A. Review. The terms of the affordable housing agreement shall be reviewed and revised as
appropriate by the Director and City Attorney.
B. Fees. The City may establish fees associated with the setting up and monitoring of the
affordable units.
C. Contents. The affordable housing agreement shall include at least the following:
1. Identification of Affordable Units. Affordable units shall be identified by address and legal
description, type (floor area, number of bedrooms/baths, unit size, etc.), and designated
household income category. The affordable housing agreement shall also identify the
total number of affordable units and total number of units approved for the housing
development.
2. Term of Affordability. Unless specified elsewhere in this Chapter, a minimum term of
fifty-five (55) years of the specified affordability shall be required. Such reservation
period shall begin on the date a certificate of occupancy is granted for the affordable
units.
3. Maximum Allowable Rent or Sales Price.
a. Rental Housing Developments. In the case of rental housing developments, the
affordable housing agreement shall provide for the following conditions governing
the use of the affordable housing units during the use restriction period:
i. The rules and procedures for qualifying tenants, establishing affordable rent,
filling vacancies, and maintaining the affordable units for qualified tenants.
ii. Provisions requiring owners to verify tenant incomes and maintain books and
records to demonstrate compliance with this chapter.
iii. Provisions requiring owners to submit an annual report to the City, which includes
the name, address and income of each person occupying each affordable unit,
150
and which identifies the bedroom size and monthly rent or cost of each affordable
unit.
iv. Determination of Rent. A maximum rent schedule shall be submitted to the City
prior to the issuance of an occupancy permit for the affordable units, and updated
annually on the anniversary date of occupancy.
v. Deposit Amount. Total move-in costs for eligible tenants occupying affordable
units shall be limited to first month's rent plus a security/cleaning deposit not to
exceed one month's rent.
vi. Upward Mobility Allowance. When a tenant occupying an affordable unit no
longer qualifies under the income requirements, verified through the monitoring
program required as part of the affordable housing agreement, that tenant may
then be charged market rate rent. If this occurs, any currently vacant unit of
similar type to the affordable unit in question shall then be designated as an
affordable unit, and the owner shall immediately attempt to secure tenants in
accordance with this chapter. The owner is required to maintain at all times during
the use restriction the minimum number of affordable units identified in the
affordable housing agreement.
vii. Subletting of Affordable Units. No subletting or short-term occupancy of
designated affordable units shall be allowed.
b. Ownership Projects. In the case of for-sale housing developments, as a condition of
approval of the housing development, the City shall require an affordable housing
agreement that includes the following conditions governing the initial sale and use of
affordable units during the applicable use period:
i. Affordable units shall, upon initial sale, be sold to eligible very low- and low-income
households at an affordable sales price and housing cost, or to qualifying
residents in the case of a senior citizen housing development.
ii. Affordable units shall be initially owner-occupied by eligible very low- or low-
income households, or by qualifying residents in the case of a senior citizen
housing development.
iii. The initial purchaser of each affordable housing unit shall execute an instrument
or agreement approved by the City restricting the sale of the affordable housing
unit in accordance with this chapter during the applicable use restriction period.
Such instrument or agreement shall be recorded against the parcel containing the
affordable housing unit and shall contain such provisions as the City may require
to ensure continued compliance with this chapter and State Density Bonus Law.
iv. Sale Clause. The affordable housing agreement shall stipulate that, when the
terms of affordability expire on an affordable unit, the City and/or a non-profit
housing organization shall have a first right of purchase option sixty (60) days prior
to the affordable unit being advertised on the market.
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v. Rental of For-Sale Units. Rental of affordable units shall not be allowed.
vi. Monitoring of Compliance to Agreement. A monitoring program shall be required,
specifying the party responsible for certifying tenant incomes and sales price,
maintaining the required number of affordable units and each affordable unit's
property, and marketing and filling unit vacancies.
c. Equity Sharing Agreements. When an equity sharing agreement is required by this
chapter, the affordable housing agreement shall specify the equity sharing
agreement comply with Section 21.32.140.
4. Remedies. Description of remedies for breach of the affordable housing agreement by
either party (the City may identify tenants or qualified purchasers as third-party
beneficiaries under the agreement).
5. Description of Density Bonus. A description of the incentives and/or concessions, if any,
being provided by the City.
6. Schedule. A schedule for completion and occupancy of the affordable units.
7. Other Provisions. Other provisions to ensure implementation and compliance with this
chapter.
Section 3: Section 21.70.020 (Definitions of Specialized Terms and Phrases) of Title 21
(Local Coastal Program Implementation Plan) the NBMC is hereby amended to add the following
definitions with all other definitions to remain unchanged:
“Density bonus” See Section 21.32.020. means, as defined by Government Code
Section 65915 et seq., an increase over the maximum density otherwise allowed by the applicable
zoning district that is granted to the owner/developer of a housing project who agrees to construct
a prescribed percentage of dwelling units that are affordable to very-low- and low-income
households. See “Very low-income household” and “Low-income household.”
“Extremely low-income household” means persons and families whose income does not exceed
thirty (30) percent of the area median income for Orange County, as published by the California
Department of Housing and Community Development, adjusted for family size and revised
annually.
“Low-income household” means persons and families whose income is greater than fifty (50)
percent but does not exceed eighty (80) percent of the area median income for Orange County,
as published by the California Department of Housing and Community Development, adjusted for
family size and revised annually. a household whose income is between fifty (50) percent and
eighty (80) percent of the Orange County median income (“Area median income”), adjusted for
actual household size, as determined by the California Department of Housing and Community
Development.
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“Moderate-income household” means persons and families whose income is greater than eighty
(80) percent but does not exceed one hundred twenty (120) percent of the area median income
for Orange County, as published by the California Department of Housing and Community
Development, adjusted for family size and revised annually. a household whose income is
between eighty (80) percent and one hundred twenty (120) percent of the Orange County median
income (“Area median income”), adjusted for actual household size, as determined by the
California Department of Housing and Community Development..
“Very low-income household” means persons and families whose income is greater than thirty
(30) percent but does not exceed fifty (50) percent of the area median income for Orange County,
as published by the California Department of Housing and Community Development, adjusted for
family size and revised annually. a household whose income is fifty (50) percent or less of the
Orange County median income (“Area Median Income”), adjusted for actual household size, as
determined by the California Department of Housing and Community Development.
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Density Bonus
Zoning Code & LCP Amendments
PLANNING COMMISSION
JULY 21, 2022
Jaime Murillo, AICP, Principal Planner
David Blumenthal, AICP, Planning Consultant
Planning Commission - July 21, 2022 Item No. 4a - Additional Materials Presented at the Meeting by Staff Density Bonus Code and LCP Amendments (PA2020-032)
Background
•Government Code §§65915-65918
•Initially adopted in 1979
•Last updated 2021
•Municipal Code Section 20.32
•Last updated 2010
•18 Legislative Actions since 2010
•Updates required to comply with State law
2Community Development Department
Planning Commission - July 21, 2022 Item No. 4a - Additional Materials Presented at the Meeting by Staff Density Bonus Code and LCP Amendments (PA2020-032)
Proposed Amendments
•Zoning Code Amendment (Title 20)
•Update density bonus regulations
•Establish process to review & approve
•Local Coastal Program Amendment (Title 21)
•Add density bonus regulations for coastal zone
3Community Development Department
Planning Commission - July 21, 2022 Item No. 4a - Additional Materials Presented at the Meeting by Staff Density Bonus Code and LCP Amendments (PA2020-032)
What is “Density Bonus”?
An incentive-based tool to allow a density increase over the
maximum allowable residential density in exchange forproviding affordable and special needs housing.
Community Development Department 4
Market-Rate Project
100 Market-Rate Units
No Affordable Units
10% Low-Income Project
90 Market-Rate Base Units
10 Low-Income Units
20 Market-Rate Density Bonus Units
Planning Commission - July 21, 2022 Item No. 4a - Additional Materials Presented at the Meeting by Staff Density Bonus Code and LCP Amendments (PA2020-032)
Other Incentives
Community Development Department 5
•Reduced Parking Ratios
•Development
Incentives
•Development
Standard Waivers
Planning Commission - July 21, 2022 Item No. 4a - Additional Materials Presented at the Meeting by Staff Density Bonus Code and LCP Amendments (PA2020-032)
Eligible Project Types
Category Minimum
Requirement
TRADITIONAL AFFORDABLE HOUSING
Very Low-Income (50% AMI)5%
Low-Income (80% AMI)10%
Moderate-Income: Ownership (120% AMI)10%
SPECIAL NEEDS HOUSING
Transitional Foster Youth, Disabled Veterans, Or Homeless Persons
(Very Low-Income)
10%
College Student Housing (Lower-Income)20%
Senior Citizen Housing 35 units
ALTERNATIVE OPTIONS
Conversion of Apartments to Condominium
(Very Low, Low, or Mod-Income)
15%/ 33%
Donation of Entitled Land for Affordable Housing
(Very Low-Income)1 acre
Community Development Department 6
Planning Commission - July 21, 2022 Item No. 4a - Additional Materials Presented at the Meeting by Staff Density Bonus Code and LCP Amendments (PA2020-032)
Bonus: Sliding Scale
7Community Development Department
% Low-
Income
Units
% Density
Bonus
10 20
24 50
100 80
% Very-Low-
Income
Units
% Density
Bonus
5 20
15 50
100 80
% Moderate
Income
Units
% Density
Bonus
10 5
44 50
100 80
No Density Limit
Within ½ mile of a major transit stop
and 100% affordable units
Planning Commission - July 21, 2022 Item No. 4a - Additional Materials Presented at the Meeting by Staff Density Bonus Code and LCP Amendments (PA2020-032)
Other Bonuses
Community Development Department 8
Project Type Bonus
Transitional foster youth, disabled veterans, or
homeless persons
20%
College students 35%
Senior Citizens 20%
Qualifying condominium conversions 25%
Land Donations 15 –35%
Eligible Project + Childcare Floor Area or
Incentive
No stacking of bonuses
(except childcare)
Planning Commission - July 21, 2022 Item No. 4a - Additional Materials Presented at the Meeting by Staff Density Bonus Code and LCP Amendments (PA2020-032)
Automatic Parking Reductions
Community Development Department 9
Project Type Requirement Per Unit
Multi-Unit Dwellings 2.5 spaces
Dwelling Unit Size Parking Per Unit
Studio to 1 Bedroom 1 space
2 to 3 Bedrooms 1.5 spaces
4 or more Bedrooms 2.5 spaces
Standard City Parking Requirements
Density Bonus Allowance
Further parking reductions or waivers
allowed in some cases
Planning Commission - July 21, 2022 Item No. 4a - Additional Materials Presented at the Meeting by Staff Density Bonus Code and LCP Amendments (PA2020-032)
Incentives/Concessions
Regulatory relief that results in an identifiable and actual cost reduction (economic)
Community Development Department 10
# of Incentives or
Concessions
Very low Income Low-Income Moderate-
Income
1 5%10%10%
2 10%17%20%
3 15%24%30%
4 100%100%100%
Examples:
•Mixed-use zoning
•Deviation from development standards to reduce costs
•Reduction of fees or dedications (at City’s discretion)
Planning Commission - July 21, 2022 Item No. 4a - Additional Materials Presented at the Meeting by Staff Density Bonus Code and LCP Amendments (PA2020-032)
Development Standard Waivers
Waive or reduce development standards (e.g. setbacks, heights, open space, etc.) that would physically prevent the
project from being constructed
Community Development Department 11
Base Height Limit
55 feet
Height Increase
70 feet
Unlimited Number
Planning Commission - July 21, 2022 Item No. 4a - Additional Materials Presented at the Meeting by Staff Density Bonus Code and LCP Amendments (PA2020-032)
Approval Process
•Affordable Housing Implementation Plan
•To be processed with other entitlements
•Review Authority
•Same Review Authority for underlying project
•Planning Commission –Waive or reduce development standard
•City Council –Financial incentive or waive fee
Community Development Department 12
Planning Commission - July 21, 2022 Item No. 4a - Additional Materials Presented at the Meeting by Staff Density Bonus Code and LCP Amendments (PA2020-032)
Recommended Action
•Conduct Public Hearing
•Find Exempt from CEQA
•Adopt Resolutions recommending City Council:
•Adoption of Zoning Code amendment
•Submittal of LCP Amendment to CA Coastal Commission
•Staff will incorporate any needed revisions based on pending legislation (4 bills)
13Community Development Department
Planning Commission - July 21, 2022 Item No. 4a - Additional Materials Presented at the Meeting by Staff Density Bonus Code and LCP Amendments (PA2020-032)
14
Questions and Discussion
JAIME MURILLO, AICP, PRINCIPAL PLANNER
JMurillo@newportbeachca.gov
PLANNING COMMISSION PUBLIC HEARING
JULY 21, 2022
Planning Commission - July 21, 2022 Item No. 4a - Additional Materials Presented at the Meeting by Staff Density Bonus Code and LCP Amendments (PA2020-032)