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HomeMy WebLinkAboutOrdinance #3764 ORDINANCE NO. 3764 AN ORDINANCE OF THE CITY OF HUNTINGTON BEACH AMENDING CHAPTER 230 OF THE HUNTINGTON BEACH ZONING AND SUBDIVISION ORDINANCE TITLED SITE STANDARDS The City Council of the City of Huntington Beach does hereby ordain as follows: SECTION 1. Section 230.14 of the Huntington Beach Zoning and Subdivision Ordinance is hereby amended as follows: 230.14 Affordable Housing Density Bonus. A. When a developer of a residential property which is zoned and general planned to allow five (5) or more dwelling units proposes to provide affordable housing, he or she may request a density bonus and incentives or concessions through a conditional use permit subject to the provisions contained in this section. A density bonus request pursuant to the provisions contained within this section shall not be denied unless the project is denied in its entirety. B. Affordability requirements. 1. Percentage of affordable units required. To qualify for a density bonus and incentives or concessions, the developer of a residential project shall elect at least one of the following: a. Provide at least ten percent(10%) of the total units of the housing development for lower income households, as defined in Health and Safety Code section 50079.5; or b. Provide at least five percent(5%) of the total units of the housing development for very low income households, as defined in Health and Safety Code section 50105; or C. Provide a senior citizen housing development as defined in Civil Code Sections 51.3 and 51.12, or mobilehome park that limits residency based on age requirements for housing for older persons pursuant to Civil Code Sections 798.76 or 799.5; or d. Provide at least ten percent (10) of the total dwelling units in a common interest development as defined in Civil Code Section 1351 for 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. The density bonus shall not be included in the total number of the housing units when determining the number of housing units required to be affordable. Remaining units may be rented, sold or leased at "market" rates. 06-392/3972 1 Ordinance No.3764 2. Duration of affordability. An applicant shall agree to, and city shall ensure, continued affordability of all low and very low income units that qualified the applicant for the award of the density bonus for thirty(30) years or a longer period of time if required by a construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy program. Where there is a direct financial contribution to a housing development pursuant to Government Code Section 65915 through participation in cost of infrastructure, write-down of land costs, or subsidizing the cost of construction,the city will assure continued availability for low- and moderate-income units for 30 years. The affordability agreement required by Section 230.1413.4 shall specify the mechanisms and procedures necessary to carry out this section. An applicant shall agree to, and the city shall ensure that, the initial occupant of the moderate-income units that are directly related to the receipt of the density bonus in the common interest development as defined in Section 1351 of the Civil Code, are persons and families of moderate income, as defined in Section 50093 of the Health and Safety Code. The City shall enforce an equity-sharing agreement, unless it is in conflict with the requirements of another public funding source of law. The following shall apply to the equity-sharing agreement: a. Upon resale,the seller of the unit shall retain the value of any improvements,the downpayment, and the seller's proportionate share of appreciation. The City shall recapture any initial subsidy and its proportionate share of appreciation, which shall then be used within three years for any of the purposes described in subdivision(e) of Section 33334.2 of the Health and Safety Code that promote homeownership. b. 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 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. C. 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. 3. Affordable unit distribution and product mix. Affordable units shall be located throughout the project and shall include a mixture of unit types in the same ratio as provided throughout the project. 4. Affordability agreement. Affordability shall be guaranteed through an "Affordability Agreement" executed through the developer and the City. Said agreement shall be recorded on the subject property with the Orange County Recorder's Office prior to the issuance of building permits and shall become effective prior to final inspection of the first unit. The subject agreement shall be legally binding and enforceable on 06-392/3972 2 Ordinance No.3764 the property owner(s) and any subsequent property owner(s) for the duration of the agreement. The agreement shall include,but not be limited to,the following items: a. The duration of the affordability and the number of the affordable units; b. The method in which the developer and the City are to monitor the affordability of the subject affordable units and the eligibility of the tenants or owners of those units over the period of the agreement; C. The method in which vacancies will be marketed and filled; d. A description of the location and unit type (bedrooms, floor area, etc.) of the affordable units within the project; and e. Standards for maximum qualifying household incomes and standards for maximum rents or sales prices. 5. City action. Pursuant to this section the City shall: a. Grant a density bonus and at least one of the concessions or incentives identified in Section 230.14D unless the City makes a written finding pursuant to Section 230.14J. C. Calculation of Density Bonus. 1. The amount of density bonus to which the applicant is entitled shall vary according to the amount by which the project's percentage of affordable housing exceeds the percentage established in Section 230.14B. a. For housing developments meeting the low income criteria of Section 230.14B.1.a,the base density bonus of 20 percent shall be increased by one and one-half percent for every one percent increase in the percentage of low income units above 10%. The maximum allowable density bonus shall be 35 percent. b. For housing developments meeting the very low income criteria of Section 230.14B.Lb,the base density bonus of 20 percent shall be increased by two and one-half percent for every one percent increase in the percentage of very low income units above 5%. The maximum density bonus shall be 35 percent. C. For housing developments meeting the senior citizen housing criteria of Section 230.14B.1.c, the density bonus shall be 20 percent. d. For housing developments meeting the moderate income criteria of Section 230.14B.1.d, the base density bonus of five percent shall be increased by one percent for every one percent increase in the percentage of moderate income units over 10%. The maximum density bonus shall be 35 percent. 06-392/3972 3 Ordinance No.3764 2. All density calculations resulting in fractional units shall be rounded up to the next whole number. The granting of a density bonus shall not be interpreted, in and of itself, to require a general plan amendment, local coastal plan amendment, zoning change, or other discretionary approval. As used in Section B, "total units" does not include units permitted by a density bonus awarded pursuant to this section. 3. The developer may request a lesser density bonus than the project is entitled to, but no reduction will be permitted in the number of required affordable units pursuant to subsection 230.14B.1. D. Incentives and Concessions. 1. Types of incentives or concessions. The City shall grant an incentive or concession to the developer. An incentive or concession includes, but is not limited to,the following: a. A reduction in site development standards or 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, financially sufficient, and actual cost reductions. i. At the request of the developer, the City will permit a vehicular parking ratio, inclusive of handicapped and guest parking, for a development meeting the criteria of Section 230.1413 at ratios that shall not exceed: 1. Zero to one bedroom: one onsite parking space. 2. Two to three bedrooms: two onsite parking spaces. 3. Four or more bedrooms: two and one-half onsite parking spaces. ii. 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. For purposes of this Section only, a housing development may provide "onsite parking"through tandem parking or uncovered parking but not through on-street parking. b. 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. 06-392/3972 4 Ordinance No.3764 C. Other regulatory incentives or concessions proposed by the developer or the City that result in identifiable, financially sufficient, and actual cost reductions. 2. Number of Incentives and Concessions. An applicant for a density bonus 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 five percent for very low income households, or at least 10 percent for persons and families of moderate income in a common interest development. b. Two incentives or concessions for projects that include at least 20 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 common interest development. C. Three incentives or concessions for projects that include at least 30 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 common interest development. E. Waiver or Reduction of Development Standards: An applicant may submit to the city a proposal for the waiver or reduction of development standards. The applicant shall show that the waiver or modification is necessary to make the housing units economically feasible. F. Donation or Transfer of Land. A developer may donate or transfer land in lieu of constructing the affordable units within the project pursuant to Government Code § 65915 (h). G. Child Care Facilities. 1. When a developer proposes to construct a housing development that includes affordable units that conform to Section 230.14B and includes a child care facility that will be located on the premises of, as part of, or adjacent to the housing development, the City 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 child care facility. b. An additional concession or incentive that contributes significantly to the economic feasibility of the construction of the child care facility. 2. A housing development shall be eligible for the density bonus or concession described in this Section if the City makes all of the following findings: 06-392/3972 5 Ordinance No.3764 a. The child care facility will 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 Section 230.1413.2. b. Of the children who attend the child care facility,the percentage of children of very low income households, lower income households, or moderate income households shall be equal to or greater than the percentage of dwelling units that are required to be affordable to very low income households, low income households, or moderate income households. 3. "Child care facility," as used in this section, 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 schoolage child care centers. H. Procedure. 1. In addition to submitting all documentation required to apply for a conditional use permit, a developer requesting a density bonus pursuant to this section shall include the following in the written narrative supporting the application: a. A general description of the proposed project, general plan designation, applicable zoning,maximum possible density permitted under the current zoning and general plan designation and such other information as is necessary and sufficient. The property must be zoned and general planned to allow a minimum of five (5)units to qualify for a density bonus. b. A statement detailing the number of density bonus units being proposed over and above the number of units normally permitted by the applicable zoning and general plan designations. C. A description of the requested incentive or concessions that the developer requests. d. A calculation of the density bonus allowed. 2. All subsequent City review of and action on the applicant's proposal for a density bonus and/or consideration of any requested incentives or concessions shall occur in a manner concurrent with the processing of the conditional use permit and any other required entitlements, if any. If the developer proposes that the project not be subject to impact fees or other fees regularly imposed on a development of the same type, final approval will be by the City Council. 3. The Planning Commission/City Council shall review the subject Affordability Agreement concurrently with the development proposal. No project shall be deemed approved until the Affordability Agreement has been approved by the City Council. (3710-6/05) 06-392/3972 6 Ordinance No. 3764 4. The Planning Commission/City Council may place reasonable conditions on the granting of the density bonus and any other incentives as proposed by the applicant. However, such conditions must not have the effect, individually or cumulatively, of impairing the objective of California Government Code Section 65915 et seq., and this section, of providing affordable housing for qualifying residents. 5. A monitoring fee, as established by resolution of the City Council, shall be paid by the applicant to the City prior to issuance of a certificate of occupancy for the first unit. This fee shall be in addition to any other fees required for the processing of the conditional use permit, environmental analysis, and/or any other entitlements required. I. Required findings for ap rp oval. 1. Density bonus. In granting a conditional use permit for a density bonus, the Planning Commission/City Council shall make all of the following findings: a. The proposed project, which includes a density bonus, can be adequately serviced by the City and County water, sewer, and storm drain systems without significantly impacting the overall service or system. b. The proposed project, which includes a density bonus, will not have a significant adverse impact on traffic volumes and road capacities, school enrollments, or recreational resources. c. The proposed project, which includes a density bonus, is compatible with the physical character of the surrounding area. d. The proposed project, which includes a density bonus, is consistent with the overall intent of the General Plan. e. If located within the coastal zone, the proposed project which includes a density bonus will not result in the fill, dredge, or diking of a wetlands. (3334-6/97) J. Required findings for denial. l. Concessions or Incentives. The city shall grant the concession or incentive requested by the applicant unless the city makes a written finding, based upon substantial evidence, of either of the following: a. The concession or incentive is not required in order to provide 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 California Government Code Section 65915(c). b. The concession or incentive would have a specific adverse impact, as defined in paragraph(2) of subdivision(d) of California Government Code Section 65589.5, upon public health and safety or the physical environment or on any real property that is listed in the California Register of Historical Resources and for which there 06-392/3972 7 Ordinance No.3764 is no feasible method to satisfactorily mitigate or avoid the specific adverse impact without rendering the development unaffordable to low and moderate-income households. SECTION 2. All other sections of Chapter 230 of the Huntington Beach Zoning and Subdivision Ordinance not amended hereby remain in full force and effect. SECTION 3. This ordinance shall become effective 30 days after its adoption. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 5th day of February , 200 7 Az4tnazx •Ma r ATTEST: APPROVED AS TO FORM: City C er m 1 J�City Attorney pLP REVIEWED AND APPROVED: INITIAT A P OVED: City Adm istrator Director of P anning 06-392/3972 8 Ord. No. 3764 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I,JOAN L. FLYNN, the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City,do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing ordinance was read to said City Council at a re ular meeting thereof held on the 16th day of January,2007, and was again read to said City Council at a re ular meeting thereof held on the 5th day of February,2007, and was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council. AYES: Bohr, Carchio, Cook, Coerper, Green, Hansen, Hardy NOES: None ABSENT: None ABSTAIN: None I,Joan L.Flynn,CITY CLERK of the City of Huntington Beach and ex-officio Clerk of the City Council,do hereby certify that a synopsis of this ordinance has been published in the Huntington Beach Fountain Valley Independent on February 15,2007. In accordance with the City Charter of said City Jogp L. Flynn Ci1y Clerk Cif/Clerk and ex-officio erk Deputy City Clerk of the City Council of the City of Huntington Beach, California