HomeMy WebLinkAbout2022-56 - Authorizing 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 Newport Beach Municipal Code Related to Density Bonuses to Comply wRESOLUTION NO. 2022-56
A RESOLUTION OF THE CITY OF NEWPORT BEACH,
CALIFORNIA, AUTHORIZING 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 RELATED TO DENSITY
BONUSES TO COMPLY WITH STATE LAW (PA2020-032)
WHEREAS, Section 200 of the City of Newport Beach ("City") Charter vests the
City Council with the authority to make and enforce all laws, rules and regulations with
respect to municipal affairs subject only to the restrictions and limitations contained in the
Charter and the State Constitution, and the power to exercise, or act pursuant to any and
all rights, powers, and privileges, or procedures granted or prescribed by any law of the
State of California;
WHEREAS, 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;
WHEREAS, 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;
WHEREAS, 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;
WHEREAS, Chapter 20.32 (Density Bonus) of the NBMC sets forth the City's
requirements for granting density bonuses in compliance with California Government
Code Section 65915 et seq. ("State Density Bonus Law");
WHEREAS, since Chapter 20.32 (Density Bonus) of the NBMC was last updated
in 2010 pursuant to Ordinance No. 2010-21, the California Legislature has adopted 18
bills that amend various sections of the State Density Bonus Law;
Resolution No. 2022-56
Page 2 of 4
WHEREAS, revisions to Chapter 20.32 (Density Bonus) and the addition of
Chapter 21.32 (Density Bonus) are necessary in order to ensure consistency with the
State Density Bonus Law;
WHEREAS, the City is adding Chapter 21.32 (Density Bonus) in accordance with
Policy Action 4C of the 2021-2029 General Plan Housing Element;
WHEREAS, on April 14, 2020, the City Council initiated Local Coastal Program
Amendment No. LC2020-004 pursuant to Resolution No. 2020-36;
WHEREAS, 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 Local Coastal Program
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;
WHEREAS, the Planning Commission opened the public hearing to consider
Local Coastal Program Amendment No. LC2020-004 on July 7, 2022, and continued the
hearing to 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 Government Code Section 54950 et seq. ("Ralph M. Brown
Act") and Chapter 21.62 (Public Hearings) of the NBMC;
WHEREAS, at the continued hearing evidence, both written and oral, was
presented to, and considered by, the Planning Commission;
WHEREAS, at the conclusion of the hearing , the Planning Commission adopted
Resolution No. PC2022-019 by a unanimous vote (7 ayes - 0 nays), recommending
approval of Local Coastal Program Amendment No. LC2020-004 to the City Council; and
WHEREAS, a duly noticed public hearing was held by the City Council on August
23, 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 Ralph M. Brown Act and Chapter 21.62 (Public Hearings) of the
NBMC. Evidence, both written and oral, was presented to, and considered by, the City
Council at this public hearing.
NOW, THEREFORE, the City Council of the City of Newport Beach ordains as
follows:
Resolution No. 2022-56
Page 3 of 4
Section 1: The City Council authorizes staff to submit Local Coastal Program
Amendment No. LC2020-004 to amend Chapter 21.32 (Density Bonus) of the NBMC as set
forth in Exhibit 'A" which is attached hereto and incorporated by reference, to the California
Coastal Commission.
Section 2: Local Coastal Program Amendment No. LC2020-004 is consistent
with and implements California Government Code Section 65915 et. seq.
Section 3: 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.
Section 4: Local Coastal Program Amendment No. LC2020-004 shall not
become effective until approval by the California Coastal Commission and adoption,
including any modifications suggested by the California Coastal Commission, by
resolution and/or ordinance of the City Council of the City of Newport Beach.
Section 5: The Local Coastal Program Land Use Plan and Title 21 (Local
Coastal Program Implementation Plan) including Local Coastal Program Amendment No.
LC2020-004, if approved, will be carried out fully in conformity with the California Coastal
Act.
Section 6: The recitals provided in this resolution are true and correct and are
incorporated into the operative part of this resolution.
Section 7: 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.
Resolution No. 2022-56
Page 4 of 4
Section 8: Local Coastal Program Amendment No. LC2020-004 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 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 9: This resolution shall take effect immediately upon its adoption by the
City Council, and the City Clerk shall certify the vote adopting the resolution.
ADOPTED this 23rd day of August 2022.
Leilani I. E
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
Aaron C. Harp
City Attorney
Attachment(s): Exhibit A — Local Coast Program Amendment No. LC2020-004
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) of 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 (6) 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) of the NBMC is hereby added to read as follows:
Chapter 21.32
DENSITY BONUS
Sections:
21.32.010
Purpose.
21.32.020
Definitions.
21.32.025
Coastal Act Consistency.
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 or Reductions of Development Standards.
21.32.090
Incentives for Housing with Childcare 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 not intended to expand the requirements of Government
Code Sections 65915 through 65918, as the same may be amended from time to time,
but rather to provide a means for granting density bonuses and incentives as required by
state law. This chapter provides regulations for considering density bonus and incentive
requests for the development of housing that is affordable to extremely low-, very low-,
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
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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.
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.
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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 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.
P. "Unobstructed access" means that the income qualified resident of the housing
development is able to walk or bike to from the residence without trespassing or
otherwise encountering natural or constructed impediments.
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.
A. 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 include only one (1) of the following requirements and
satisfy all other applicable provisions of this Local Coastal Program Implementation
Plan.
1. A minimum of five (5) percent of the total number of units of a housing development
shall be 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 shall be restricted and affordable to low-income households.
3. A minimum often (10) percent of the total units in a for -sale housing development
shall be restricted and affordable to moderate -income households provided that all
units in the housing development are offered to the public for purchase.
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4. One hundred (100) percent of all units in a housing development, exclusive of a
manager's unit or units shall be restricted and affordable to lower -income
households, except that no more than twenty (20) percent of the units in the
housing 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 for
transitional foster youth, disabled veterans, or homeless persons shall be 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 shall
be 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 donates at least one (1) acre of land to
the City 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
parcel 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 section,
contains affordable units at 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 density bonus 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 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 meets one (1) of the eligibility levels in Section 21.32.030 is
entitled to a density bonus as provided herein.
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
De sity 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 (Y2) 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.
All units in the student housing development shall 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.
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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) shall be entitled to a density bonus calculated as
follows:
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
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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 be
zoned to accommodate at least thirty (30) dwelling units per acre, and is, or will
be, served by adequate public facilities and infrastructure through the construction
of 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 the 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 review authority, within one -quarter ('/4) mile
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 below. 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.
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
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4 or more Bedrooms 1 2.5 spaces
2. Within One -Half Mile ('/2) 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 (Y2)
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 ('/2) 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 ('/2) mile of 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 ('/2) mile of a fixed bus route that
operates at least eight (8) times per day.
4. Notwithstanding subsections (B)(2) and (13)(3), the City may impose the parking
ratio set forth in subsection (13)(1), if the City or an independent consultant has
conducted an areawide or jurisdiction -wide parking study in the past seven (7)
years that demonstrates a higher parking ratio is necessary based upon 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 on -site parking.
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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 (1) or more of the
following findings is made:
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)
percent of the total units for low-income students in a student housing
development, or at least ten (10) percent of the total units for moderate -income
households 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 moderate -income households 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
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thirty (30) percent of the total units for moderate -income households 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 (Y2) 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 standard(s) as that term is defined in Section
21.32.020 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, which shall be
at the sole discretion of the City Council; 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 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.
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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).
21.32.090 Incentives for Housing with Childcare Facilities.
A. Incentives. A housing development that complies with the income requirements of
Section 21.32.030(A) and 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 either of the following additional 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).
Notwithstanding the foregoing, the City shall not be required to provide a density
bonus for a childcare facility if it finds that the community has adequate childcare
facilities.
B. Requirements to Qualify for Incentives. The City shall require, as a condition of
approval of 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,
low-income, or moderate -income households shall equal a percentage that is
equal to or greater than the percentage of dwelling units that are required for very
low-income, lower -income, or moderate -income households in compliance with
Section 21.30.030(A).
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 not limited to, staff costs, consultant fees, photocopy costs, and
mailing fees, incurred by the City; and
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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 very low-, low- and moderate -income households.
B. Replacement Units. All units within the condominium conversion shall meet the
replacement requirements in Section 21.32.120.
C. Ineligible Requests. Apartments which are proposed for conversion to condominiums
shall be ineligible for a density bonus or other incentive under this section if the
apartments were previously granted a density bonus, concession, incentive, or waiver
or reduction of development standards.
D. Preapplication Process. An applicant may submit a preliminary application to the City
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 constructed to the same
quality and exterior design as the market -rate housing units. Additionally, the
affordable units shall include the same laundry, recreation and other facilities that are
made available to the market -rate housing units;
C. Access. In mixed -income multi -unit structures, the occupants of the affordable 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-
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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, or were, subject to a recorded covenant that restricts rents to
very low- or low-income households, or are, or were, occupied by very low- or low-income
household(s) shall be subject to all of the following requirements:
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 at affordable rent or affordable housing cost to, and
occupied by, persons or families in the same or lower income category as the existing
occupants.
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 highest occupancy point for those units in the five (5) years
preceding the application at affordable rent or affordable housing cost to, and
occupied by, persons and families in the same or lower -income category as the
persons or families that occupied the units immediately preceding the vacancy or
demolition.
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 record a covenant on the property that the
units that qualified the housing development for a density bonus and other incentives
are restricted as affordable units 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:
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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 set forth
in this section.
A. Initial Occupancy. A for -sale unit, which qualified the applicant for the award of the
density bonus, shall meet either of the following requirements:
1. The unit is initially occupied by a very low-, low-, or moderate -income household,
offered at an affordable housing cost as defined in Section 50052.5 of the Health
and Safety Code, and subject to an equity sharing agreement; or
2. The unit is purchased by a qualified nonprofit housing corporation pursuant a
contract that is recorded on 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-
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five (45) years for owner -occupied housing units and will be sold or resold only
to very low-, low-, or moderate -income households.
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.
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.
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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:
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. 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. 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. When a tenant occupying an affordable unit no longer qualifies under the
income requirements, verified through the monitoring program required as
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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. 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:
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.
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. 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 affordable units shall not be allowed.
vi. 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. Monitoring of Compliance to Agreement. A monitoring program shall be required,
specifying the party responsible for certifying tenant incomes and sales price,
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maintaining the required number of affordable units for the property, marketing and
filling unit vacancies.
5. 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).
6. Description of Density Bonus. A description of the incentives and/or concessions,
if any, being provided by the City.
7. Schedule. A schedule for completion and occupancy of the affordable units.
8. 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) of the NBMC is amended to include
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 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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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. 2022-56 was duly introduced before and adopted by the City Council of said City at a regular meeting
of said Council held on the 23rd day of August, 2022; and the same was so passed and adopted by the
following vote, to wit:
AYES: Mayor Kevin Muldoon, Mayor Pro Tem Noah Blom, Council Member Brad Avery,
Council Member Joy Brenner, Council Member Diane Dixon, Council Member
Duffy Duffield
NAYS: None
ABSENT: Council Member Will O'Neill
IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of
said City this 241h day of August, 2022.
(4*
Leilani I. Brown
City Clerk
Newport Beach, California
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