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5289I ORDINANCE NO. 5289 AN ORDINANCE OF THE CITY OF ANAHEIM ADDING CHAPTER 18.99 TO TITLE 18 OF THE ANAHEIM MUNICIPAL CODE RELATING TO DENSITY BONUS THE CITY COUNCIL OF THE CITY OF ANAHEIM HEREBY ORDAINS AS FOLLOWS: SECTION 1. That new Chapter 18.99 be, and the same is hereby, added to Title 18 of the Anaheim Municipal Code to read as follows: "CHAPTER 18.99 DENSITY BONUS SECTION 18.99.010 DESCRIPTION AND PURPOSE The purpose of the Densitv Bonus is to contribute significantly to the economic feasibility of lower income housing in proposed housing developments. The following provisions are established in order to comply with the requirements of Section 65915, et seg., of the California Government Code, to help meet the affordable housing goals of the Housing Element of the General Plan of the City of Anaheim, and to protect the public health, safety, and general welfare. The Density Bonus shall be applied in a manner which provides for the maximum number of affordable housing units consistent with the economic feasibility of the housing project, the land use and development standards of the community and compatibility with surrounding land uses. SECTION 18.99.020 DEFINITIONS For the purposes of this chapter, the following words and terms shall be construed and defined as specified in this Section and the sections of the California Code referenced herein: .010 'Additional Incentive' means a concession or incentive, as set forth in Section 65915(h) of the Government Code. .020 'Affordability Agreement' means a written agreement to be entered by and between the City and an applicant for a Density Bonus, as set forth in Section 18.99.070. .030 'Affordable Units' means those housing units required to be rented or sold to Lower Income Households, Qualifying Residents, or Very Low Income Households, as set forth in Section 18.99.030. .040 'Density Bonus' shall have the meaning set forth in Section 65915(f) of the Government Code. L .050 'Eligible Housing Development' means a proposed housing development eligible for a Density Bonus under Section 65915(g) of theGovernmentCode. .060 'Lower Income Households' shall have the meaning set forth in California Health and Safety Code Section 50079.5. .070 'Qualifying Residents' (senior citizens) shall have the meaning set forth in California Civil Code Section 51.3. .080 'Very Low Income Households' shall have the meaning set forth in California Health and Safety Code Section 50105. SEC`T'ION 18.99.030 ELIGIBLE HOUSING DEVELOPMENTS .010 Density Bonus And One Additional Incentive. Subject to the provisions of this Chapter, if an applicant proposes to construct an Eligible Housing Development containing one of the following percentages of Affordable Units, calculated prior to the granting of a Density Benus; the applicant shall be granted either (i) a Density Bonus, as set forth in Section 18.99.040, and one and only one Additional Incentive, as set forth in Section 18.99.050, or (ii) other incentives of equivalent financial value based on the fair market value of the land per dwelling unit in lieu of a Density Bonus and Additional Incentive, as set forth in Section 18.99.060: .0101 Not less than twenty percent (200) of the total permitted units of the housing development dedicated to Lower Income Households. .0102 Not less than ten percent (10%) of the total permitted units of the housing development dedicated to Very Low Income Households. .0103 Not less than fifty percent (50%) of the total permitted units of the housing development dedicated to Qualifying Residents. .020 Density Bonus And Two Or More Additional Incentives. Subject to the provisions of this Chapter, if an applicant proposes to construct an Eligible Housing Development containing one of the following percentages of Affordable Units, calculated prior to the granting of a Density Bonus, the applicant shall be granted either (i) a Density Bonus, as set forth in Section 18.99.040, and at least two Additional Incentives, as set forth in Section 18.99.050, or (ii) other incentives of equivalent financial value based on the fair market value of the land per dwelling unit in lieu of a Density Bonus and Additional Incentives, as set forth in Section 18.99.060: 2 L .0201 Not less than twenty-five percent (250) of the total permitted units of the housing development dedicated to Lower Income Households. .0202 Not less than twelve percent (12%) of the total permitted units of the housing development dedicated to Very Low Income Households. .0203 Not less than fifty.percent (50%) of the total permitted units of the housing development dedicated to Qualifying Residents, and not less than twelve percent (12%) of the total permitted units of the housing development dedicated to Very Low Income Households (for purposes of this requirement a unit may be both dedicated to Qualifying Residents and dedicated to Very Low Income Households). If such housing development receives a conditional use permit under Chapter 18.94 of this Code, the requirement under this Section 18.99.020.0203 that twelve percent (12%) of the permitted housing development be dedicated to Very Low Income Households shall be in addition to any affordability requirements under Chapter 18.94. SECTION 18.99.040 DENSITY BONUS An applicant who is entitled to a Density Bonus shall be permitted to construct a maximum of twenty-five percent (25%) more units ('Density Bonus Units') than otherwise permitted by the site zoning and development standards in effect on (i) the date a completed application for the project is received by the City or (ii) upon the date of final approval of the discretionary permit, whichever zoning and development standards shall result in a lower density for the project (the 'Base Number of Units'). The Base Number of Units shall be determined by reference to the current zoning of the parcel on which the Eligible Housing Development is proposed to be located, or if the current zoning is RS -A-43,000, or a zoning classification other than residential, the Base Number of Units shall be determined using RM -1200 standards for rental projects and RM -2400 standards for condominium projects. If the resulting number of Density Bonus Units is a fractional number, the permitted number of Density Bonus Units shall be the next higher whole number. SECTION 18.99.050 ADDITIONAL INCENTIVES An applicant who is entitled to one or more Additional Incentives pursuant to Section 18.99.030 shall be granted one or more concessions or incentives as defined by Section 65915(h) of the Government Code, unless the Community Development Department determines and a finding is made by the City pursuant to Section 18.99.090.020(c) that no Additional Incentive is necessary to make the proposed housing project economically feasible to provide for Affordable Housing Costs. 3 L The selection of Additional Incentives shall be at the sole discretion of the City, as set forth in Section 18.99.090.030. The Additional Incentive shall be granted in the form of a variance or exemption from applicable City requirements, if applicable, to the extent such variance or exemption is permitted by the City Code. All numerical development standards shall be limited to a change of no more than twenty-five percent (25%) from the development standard otherwise allowed. An Additional Incentive shall be deemed granted for the purposes of this Chapter if any concession or incentive, such as a change of zoning or General Plan designation, is granted with respect to the subject property within twenty-four (24) months prior to or after the granting of a Density Bonus. SECTION 18.99.060 INCENTIVES OF EQUIVALENT FINANCIAL VALUE An applicant who is eligible for another incentive in lieu of a Density Bonus and Additional Incentives) shall be granted an incentive which is determined by the City to be of equivalent financial value to a Density Bonus based on the fair market value of the land pel dwelling unit. Such finding shall be based upon an independent appraisal and/or financial analysis of the applicant's property with and without a Density Bonus, and with and without the selected incentive or incentives of equivalent financial value. Such appraisal and/or financial analysis shall be performed by or at the request of the Community Development Department by an appraiser or financial analyst which is acceptable to the Community Development Department, and shall be at the sole cost and expense of the applicant. The final selection of such incentive or incentives shall be at the sole discretion of the City, and may include any item or action which would qualify as an Additional Incentive pursuant to Section 18.99.050. SECTION 18.99.070 AFFORDABILITY PROVISIONS The applicant shall agree to construct, operate and maintain the Affordable Units in accordance with a written 'Affordability Agreement' between the Applicant and the City, in a form acceptable to the City Attorney, duly executed and acknowledged by the applicant and the City, and recorded against the subject property in the official records of Orange County, California prior to the first to occur of (a) the issuance of any building permits for the Eligible Housing Development, or (b) the recordation of a final tract map. The Affordable Units shall be subject to the requirements of the Affordability Agreement for a period of thirty (30) years, beginning on the date a certificate of occupancy is granted for the Affordable Units. .010 Determination of Rent. A maximum rent schedule shall be established by the Community Development Department as of the date of issuance of an occupancy permit for the Affordable Units. The rent amounts shall be established at an Affordable Housing Cost, based on the current Orange County median income, as 4 I reported by the United States Department of Housing and Urban Development. The maximum monthly rent amount shall be (i) thirty percent (30%) of sixty percent (600) of monthly median income for Affordable Units dedicated to Lower Income Households, (ii) thirty percent (30%) of thirty-five percent (35%) of monthly median income for Affordable Units dedicated to Very Low Income Households, and (iii) thirty percent (30%) of thirty-five percent (35%) of monthly median income for Affordable Units dedicated to Very Low Households in an Eligible Housing Development which contains fifty percent (50%) or more units dedicated to Qualifying Residents which Income has obtained a Density Bonus pursuant to Subsection 18.99.030.0203. The rent amount shall be based upon the following assumed number of persons living in the household: Studio - one (1) person; one bedroom - two (2) persons; two bedroom - three (3) persons; three bedroom or more - four (4) persons. The maximum rent schedule shall be adjusted by the Community Development Department on each anniversary of the date of issuance of an occupancy permit by the lesser of (a) the Annual Adjustment Factor established by the United States Department of Housing and Urban Development for housing units subject to the Section 8 rental assistance program; or (b) the average rate of increases in rent payable during the preceding twelve (7.2) months for the units other than the Affordable Units within the project. .020 Determination of Sales Price. Affordable Units dedicated to Lower Income Households or Very Low Income Households which are sold to owner -occupants shall be sold at an Affordable Housing Cost as provided herein. The Community Development Department shall establish a maximum sales price for any Affordable Unit dedicated to Lower Income households or Very Low Income Households which is proposed to be sold. The maximum sales price for Affordable Units dedicated to Lower Income Households shall be established at the price at which a person or family earning eighty percent (80%) of Orange County median income could qualify for a fixed-rate thirty (30) year mortgage loan for ninety percent (90%) of the purchase price (a) under currently prevailing conventional home mortgage lending criteria and interest rates, or (b) under the lending criteria and interest rates of a below-market rate home mortgage lending program for which such person or family actually qualifies and receives a loan. The maximum sales price for Affordable Units dedicated to Very Low Income Households shall be established at the price at which a person or family earning fifty percent (500) of Orange County median income could qualify for a fixed-rate thirty (30) year mortgage loan for ninety percent (90%) of the purchase price (a) under currently prevailing conventional home mortgage lending criteria, or (b) under the lending criteria and interest rates of a below-market rate home mortgage lending program for which such person or family actually qualifies and receives a loan. The maximum sales price for the Affordable Unit shall be based upon the income of a household with the following assumed family size: housing unit with no bedrooms (studio): one (1) person; housing unit with one (1) bedroom: two (2) persons; housing unit with two (2) bedrooms: three (3) persons; housing unit with three (3) bedrooms or more: four (4) persons. 5 L SECTION 18.99.080 APPLICATION PROCEDURE Applications for Density Bonuses shall be set for public hearing and public notice in accordance with the procedures set forth herein. .010 Preliminary Applications. An applicant shall submit a preliminary application to the Community Development Department for the development of housing pursuant to this Chapter prior to the submittal of any formal requests for General Plan amendments, zoning actions or subdivision maps for approvals. The Community Development Department shall provide to an applicant promptly upon request, the procedures for compliance with this Chapter, a copy of this Chapter, the pertinent sections of the California Code to which reference is made in this Ordinance, and a Density Bonus application. .020 Preliminary Application - Form. The Community Development Department shall prescribe the form in which preliminary applications are made for Densitv Bonuses, may prepare and provide forms for such purpose and may prescribe the type of information to be provided in the preliminary application by the applicant. .030 Review of Preliminary Application. The Community Development Department shall make a recommendation upon each preliminary application to the Planning Department prior to the acceptance by the Planning Department of the applicant's application for a Density Bonus and any accompanying General Plan amendment, zoning action or subdivision map. .040 Design Review. Plans for proposed housing projects shall be submitted to the Community Development Department for design review. The Community Development Department will review project design and seek to ensure compatibility of the housing project with the existing neighborhood scale and character and a high level of liveability for future residents. The Community Development Department will make a recommendation regarding project design to the Planning Commission. SECTION 18.99.090 PUBLIC HEARINGS .010 Procedure. A public hearing shall be held for each application for a Density Bonus in accordance with the procedure set forth in Chapter 18.03.060 of the Municipal Code. .020 Findings. Prior to approving any Density Bonus or request for Additional Incentives, the Planning Commission or City Council shall determine a factual basis exists to make the following findings, as applicable. These findings shall be in addition to any findings made with respect to any variance granted to an applicant. 6 I (a) That the applicant has proposed the construction of an Eligible Housing Development; (b) If one or more Additional Incentives are granted, that the applicant has demonstrated that each Additional Incentive granted to the applicant is necessary to make the proposed housing project economically feasible to provide for Affordable Housing Costs; (c) If no Additional Incentive is granted, that no Additional Incentives are necessary to make the proposed housing project economically feasible to provide for Affordable Housing Costs; (d) That the Density Bonus and each Additional Incentive granted, if any, further the City's affordable housing goals as set.forth in the Housing Element of the City's General Plan; (e) That each Additional Incentive granted, if any, shall not, on balance, be detrimental to the public health, safety and welfare, and shall. not cause injury to property in the immediate vicinity of the Eligible Housing Project; and (f) If one or more incentives are granted in lieu of a Density Bonus and Additional Incentive(s), that such incentive or incentives is equivalent in financial value to a Density Bonus based on the land cost per dwelling unit, as supported by an independent appraisal of the applicant's property. .030 Selection of Additional Incentive. The selection and granting of Additional Incentives shall be at the sole discretion of the Planning Commission or the City Council. The Planning Commission or City Council shall select the particular Additional Incentive or Incentives to be granted to an Applicant based on the following criteria: (a) The selected Additional Incentive or Incentives shall contribute significantly to the ability of the Eligible Housing Development to provide housing to Lower Income Households and Very Low Income Households at an Affordable Housing Cost. (b) The selected Additional Incentive or Incentives shall be the most compatible with the character of the Eligible Housing Development and to the surrounding area, relative to other Additional Incentives which might be granted. (c) The selected Additional Incentive or Incentives shall not have a detrimental impacton services and infrastructure, such as traffic volumes and road capacities, school enrollments, recreational resources and parks and water, sewer and storm drain facilities, and shall be the most compatible with the public health, safety and welfare; provided that if every Additional Incentive which might be selected would have a detrimental impact 7 on services and infrastructure, the selected Additional Incentive or Incentives shall cause the least impact, relative to other Additional Incentives which might be granted, an services and infrastructure. (d) If the Eligible Housing Development is an apartment project which proposes to dedicate a minimum of fifty percent (50%) of its units to Qualifying Residents, the following Additional Incentives shall not be granted unless the Eligible Housing Development has obtained a conditional use permit under Section 18.94 of this Code: (a) reduction in floor space requirements, (b) reduction in vehicle parking requirements, and (c) increase in structural height limitations." SECTION 2. SEVERABILITY The City Council of the City of Anaheim hereby declares that should any section, paragraph, sentence or word of this ordinance of the Code, hereby adopted, be declared for any reason to be invalid, it is the intent of the Council that it would have passed all other portions of this ordinance independent of the elimination herefrom of any such portion as may be declared invalid. SECTION 3. SAVINGS CLAUSE Neither the adoption of this ordinance nor the repeal of any other ordinance of this City shall in any manner affect the prosecution for violations of ordinances, which violations were committed prior to the effective date hereof, nor be construed as a waiver of any license or penalty or the penal provisions applicable to any violation thereof. The provisions of this ordinance, insofar as they are substantially the same as ordinance provisions previously adopted by the City relating to the same subject matter, shall be construed as restatements and continuations, and not as new enactments. THE FOREGOING ORDINANCE is approved and adopted by the City Council of the City of Anaheim this 3rd day of March, 1992. MAYOR OF THE Cf -TY OPIANAHEIM ATTEST: CITY CLERK THE CITY OF ANAHEIM SJM: dnl ORDRES\O58DNSTY.17 121391 k STATE OF CALIFORNIA ) COUNTY OF ORANGE } ss. CITY OF ANAHEIM ) I, LEONORA N. SOHL, City Clerk of the City of Anaheim, do hereby certify that the foregoing Ordinance No. 5289 was introduced at a regular meeting of the City Council of the City of Anaheim, held on the 25th day of February, 1992, and that the same was duly passed and adopted at a regular meeting of said City Council held on the 3rd day of March, 1992, by the following vote of the members thereof: AYES: COUNCIL MEMBERS: Simpson, Ehrle, Pickler, Daly and Hunter NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None AND I FURTHER CERTIFY that the Mayor of the City of Anaheim signed said Ordinance No. 5289 on the 4th day of March, 1992. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Anaheim this 4th day of March, 1992. CITY CLERK OF THE CITY OF ANAHEIM (SEAL) I, LEONORA N. SOHL, City Clerk of the City of Anaheim, do hereby certify that the foregoing is the original of Ordinance No. 5289 and was published once in the Anaheim Bulletin on the 13th day of March, 1992. CITY CLERK OF THE CITY OF ANAHEIM