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6489 ORDINANCE NO. 6 4 8 9 AN ORDINANCE OF THE CITY OF ANAHEIM AMENDING CHAPTER 18.52 (DENSITY BONUSES) OF TITLE 18 (ZONING) OF THE ANAHEIM MUNICIPAL CODE AND FINDING AND DETERMINING THAT THIS ORDINANCE IS EXEMPT FROM THE REQUIREMENTS TO PREPARE ADDITIONAL ENVIRONMENTAL DOCUMENTATION PER CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) GUIDELINES, SECTIONS 15060(C)(2) AND 15060(C)(3) BECAUSE IT WILL NOT RESULT IN A DIRECT OR REASONABLY FORESSEABLE INDIRECT PHYSICAL CHANGE IN THE ENVIRONMENT AND IT IS NOT A PROJECT, AS DEFINED IN SECTION 15378 OF THE CEQA GUIDELINES. (ZONING CODE AMENDMENT NO. 2019-00168) (DEV2019-00174) WHEREAS, Chapter 18.52 (Density Bonuses) of Title 18 (Zoning) of the Anaheim Municipal Code ("AMC") facilitates the development of affordable housing by encouraging the construction and production of housing for very low, lower and moderate households, or senior households in accordance with Section 65915 et seq. of the California Government Code (the "State Density Bonus Law"); and WHEREAS, the State of California has enacted several legislative amendments to State Density Bonus Law, California Government Code Section 65915; and WHEREAS, the City Council desires to amend Chapter 18.52 to ensure its consistency with the State Density Bonus Law; and WHEREAS,pursuant to the California Environmental Quality Act(Public Resources Code Section 21000 et seq.; herein referred to as "CEQA") and the State of California Guidelines for Implementation of the California Environmental Quality Act(commencing with Section 15000 of Title 14 of the California Code of Regulations;herein referred to as the"State CEQA Guidelines"), the City is the "lead agency" for the preparation and consideration of environmental documents for this ordinance; and WHEREAS,the Planning Commission of the City of Anaheim, at its April 27,2020 public hearing, recommended, by motion, that the City Council determine that this ordinance is not subject to CEQA pursuant to Sections 15060(c)(2) and 15060(c)(3)of the State CEQA Guidelines, because it will not result in a direct or reasonably foreseeable indirect physical change in the environment and is not a "project," as that term is defined in Section 15378 of the State CEQA Guidelines; and WHEREAS,the City Council hereby finds and determines that this ordinance is not subject to CEQA pursuant to Sections 15060(c)(2) and 15060(c)(3) of the State CEQA Guidelines, because it will not result in a direct or reasonably foreseeable indirect physical change in the 1 environment and is not a "project," as that term is defined in Section 15378 of the State CEQA Guidelines; and WHEREAS, the City Council determines that this ordinance is a matter of City-wide importance and necessary for the preservation and protection of the public peace, health, safety and/or welfare of the community and is a valid exercise of the local police power and in accord with the public purposes and provisions of applicable State and local laws and requirements. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ANAHEIM DOES ORDAIN AS FOLLOWS: SECTION 1. That Chapter 18.52 (Density Bonuses) of Title 18 (Zoning) of the Anaheim Municipal Code be, and the same is hereby, amended and restated to read in full as follows: Chapter 18.52 HOUSING INCENTIVES Sections: 18.52.010 Purpose. 18.52.020 Definitions. 18.52.030 Applicability. 18.52.040 General Density Bonus. 18.52.050 Transfer of Land. 18.52.060 Condominium Conversion. 18.52.070 Childcare Facilities. 18.52.080 Affordable Rental Housing Development. 18.52.090 Development Incentives. 18.52.100 Parking Ratios. 18.52.110 Application Review. 18.52.120 Findings. 18.52.130 Notice of Approval or Denial. 18.52.140 Appeals. 18.52.150 Time to Exercise Entitlement. 18.52.160 Housing Incentives Agreement. 18.52.170 Conflict with Other Laws. 18.52.180 Penalty for Violations. 18.52.010 PURPOSE. The purpose of this chapter is to provide Incentives to facilitate the development of rental and for-sale housing in accordance with Section 65915 et seq. of the California Government Code, as the same may be amended from time to time, and to achieve the goals, objectives, and policies of the Housing Element of the General Plan. 18.52.020 DEFINITIONS. For purposes of this chapter, the following words, terms and phrases shall have the meanings indicated below: 2 .010 "Affordable Housing Cost." An Affordable Housing Cost as defined in Section 50052.5 of the California Health and Safety Code. .020 "Affordable Rent." An Affordable Rent as defined by Section 50053 of the California Health and Safety Code. In the event, a project receives state and/or federal funding; the Affordable Rents under those funding sources may apply, as approved by the Executive Director of the Community and Economic Development Department. .030 "Affordable Rental Housing Development." A Housing Development that meets the requirements of Section 18.52.080 (Affordable Rental Housing Development). .040 "Affordable Unit."A dwelling unit subject to the provisions of this chapter that will be reserved for sale or rent to, and is made available at an Affordable Rent or Affordable Housing Cost. .050 "Childcare Facility."A Childcare Facility as defined in Section 65915(h)(4) of the California Government Code. .060 "Common Interest Development."A Common Interest Development as defined in Section 4100 of the California Civil Code including,but not limited to, condominiums. .070 "Density Bonus."A density increase over the otherwise maximum allowable gross residential density as of the date of application, or, if elected by the applicant, a lesser percentage of density increase, including, but not limited to, no increase in density. The amount of density increase to which the applicant is entitled shall vary according to the amount by which the percentage of affordable housing units exceeds the percentages set forth in Sections 18.52.040 (General Density Bonus), 18.52.050 (Transfer of Land), 18.52.060 (Condominium Conversion), 18.52.070 (Childcare Facilities) and 18.52.080 (Affordable Rental Housing Development). .080 "Housing Incentives Application." A formal application for a Density Bonus, Incentive and/or Reduced Parking Ratio made pursuant to this Chapter 18.52(Housing Incentives) and in accordance with the provisions of Section 18.52.110 (Application Review). .090 "Housing Incentives Agreement."An unsubordinated legally binding agreement in form and substance satisfactory to the City,between the applicant and the City that complies with the requirements of this chapter and ensures that the restrictions required by this chapter are satisfied. .100 "Housing Incentives Memorandum." A written acknowledgement of the basic terms of the Housing Incentives Agreement,including but not limited to the number of Affordable Units required under this chapter as well as the unit type and Affordable Rent schedule or Affordable Housing Cost as applicable for such units. • .110 "Density Bonus Units."Residential units granted pursuant to the provisions of this chapter that exceed the otherwise Maximum Allowable Residential Density for the development site. .120 "Development Standard." The development standards included in California Government Code Section 65915(o)(1). .130 "Disabled Veteran." Persons defined in Section 18541of the California Government Code. .140 "General Density Bonus." A Density Bonus that meets the requirements of Section 18.52.040 (General Density Bonus) of this chapter. .150 "Homeless Persons." Persons as defined in the McKinney-Vento Homeless Assistance Act(42 U.S.C. Sec. 11301 et seq.). .160 "Housing Development." A Housing Development as defined in California Government Code Section 65915(i). .170 "Incentive." A modification to Development Standards in Title 18 (Zoning) that contributes significantly to the economic feasibility of the construction of a Housing Development with Affordable Units and/or a Childcare Facility. 3 .180 "Irregular Lot." Land that is a legal lot of record,but does not meet the minimum lot size, street frontage or dimensions required by Title 18 (Zoning). .190 "Lot with Multiple Street Frontages." Land that is a legal lot of record with two or more frontages along a public street or alley. .200 "Lower Income Households." Households of lower income as defined in Section 50079.5 of the California Health and Safety Code. .210 "Low Income Households."Households of low income as defined in Section 50093 of the California Health and Safety Code. .220 "Lower Income Students." Students who have a household income and asset level that does not exceed the level for Cal Grant A or Cal Grant B award recipients as set forth in Section 69432.7 of the California Education Code. The eligibility of a student under this income level shall be verified as specified in Section 65915(b)(1)(F)(II) of the California Government Code. .230 "Major Transit Stop."A transit stop as defined in Section 21064.3 of the California Public Resources Code and shall also include major transit stops that are included in the applicable regional transportation plan. .240 "Maximum Allowable Residential Density." The maximum density allowed according to the site's zoning or general plan land use designation, whichever is greater. If the Housing Development is within a zoning classification other than residential, the "Maximum Allowable Residential Density"shall be the same as that for the RM-4 Zone for rental projects and the same as that for the RM-3 Zone for for-sale projects. .250 "Moderate Income Households." Households of moderate income as defined in Section 50093 of the California Health and Safety Code. .260 "Parking Ratio." The minimum number of parking spaces required in accordance with the provisions of Section 18.52.100 (Parking Ratios). .270 "Professional Management." An apartment management company that has sufficient experience, organizational stability and capacity to manage the Housing Development. .280 "Senior Citizen Housing Development." A Housing Development for senior citizens as defined in Sections 51.3 of the California Civil Code or a mobile home park that limits residency based on age requirements for housing for older persons pursuant to Section 798.76 or 799.5 of the California Civil Code. .290 "Specialized Housing Development." A Housing Development for Transitional Foster Youth, Disabled Veterans, or Homeless Persons. .300 "Transitional Foster Youth." Persons defined in Section 66025.9 of the California Education Code. .310 "Very Low Income Households." Households of very low income as defined in Section 50105 of the California Health and Safety Code. 18.52.030 APPLICABILITY. .010 Locations. This chapter shall apply citywide. .020 Applicable Requests. The City shall grant a Density Bonus, Incentive and/or Reduced Parking Ratio request(s)when the applicant meets the requirements of this chapter,unless written findings are made in accordance with the provisions of Section 18.52.120 (Findings). .030 General Requirements. All requests pursuant to this chapter shall be processed pursuant to Section 18.52.110 (Application Review). .040 Additional Affordability Requirements. Any affordability requirements identified in this chapter shall be in addition to the requirements of Chapter 18.50 (Senior Citizens' Apartment Projects). 4 .050 Direct Financial Incentives. This chapter does not limit or require the provision of direct financial incentives for any proposed development, including the provision of publicly owned land, by the City, or the waiver of fees or dedication requirements. 18.52.040 GENERAL DENSITY BONUS. .010 General. A Housing Development requesting a General Density Bonus, Incentives and/or a Reduced Parking Ratios shall comply with the following requirements: .0101 Minimum Project Size. The Housing Development, without the Density Bonus, shall be a minimum of five(5)units. .0102 Construction of Affordable Units. Affordable Units shall be constructed concurrently with other units unless both the City and the applicant agree within the Housing Incentives Agreement to an alternative schedule for development. .0103 Rental Housing .01 Length of Affordability. Affordable Units for Low and Very Low Income Households shall remain restricted to an Affordable Rent for a period of fifty five(55)years or a longer period of time if required by the construction or mortgage financing assistance program, mortgage insurance program, rental subsidy program, or pursuant to the requirements for an Affordable Rental Housing Development as specified in Section 18.52.080 (Affordable Rental Housing Development). .02 Rents. Rents for the lower-income Density Bonus Units shall be set at an Affordable Rent except as provided in Subsection 18.52.040.030.0308 of this section. .03 Professional Management.The Housing Incentive Agreement for all rental Housing Development shall include a requirement for Professional Management to provide for the continued maintenance of the property, including,but not limited to the following: (a) For any Housing Development with 16 or more units, a full- time, on-site resident manager shall be exclusively employed to manage the Housing Development. (b) Professional Management shall monitor the use of parking spaces within the Housing Development to ensure that parking spaces are available, maintained and used in accordance with the terms of the Housing Incentive Agreement. (c) Professional Management shall ensure that the Housing Development is maintained in a manner that is consistent with the standards of the Anaheim Municipal Code. (d) Professional Management shall ensure that first priority is given to people who live or work in the City during the tenant selection process in accordance with the terms of the Housing Incentive Agreement. .0104 For-Sale Housing. An applicant for a Common Interest Development that includes a Density Bonus shall ensure that the initial occupant of the Affordable Units are persons and families of very low, low, or moderate income, as required, and that the Affordable Units are offered at an Affordable Housing Cost.The City shall enforce an equity-sharing agreement,unless it is in conflict with the requirements of another public funding source or law. The following shall apply to the equity-sharing agreement: .01 Upon resale, the seller of the unit shall retain the value of any improvements, the down payment, and the seller' proportionate share of appreciation. The local government shall recapture any initial subsidy, if applicable, and its proportionate share of appreciation, which shall then be used within five years for any of the purposes described in Section 33334.2(e) of the California Health and Safety Code that promote homeownership. 5 .02 The city's initial subsidy, if applicable, shall be equal to the fair market value of the home at the time of initial sale minus the initial sale price to the Very Low Income Households, Low Income Household or Moderate Income Households, as applicable,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. .03 The City's proportionate share of appreciation shall be equal to the ratio of the initial subsidy, if any, to the fair market value of the home at the time of initial sale. .04 The Housing Incentives Agreement shall include the provisions required by Section 65916 of the California Government Code. .020 Density Bonus Calculations. A Density Bonus shall be calculated as follows: .0201 Percentage.The percentage of Affordable Units is the number of Affordable Units divided by the total number of units in the Housing Development (without including any Density Bonus Units granted pursuant to this chapter). .0202 Number of Density Bonus Units. The number of units granted by the Density Bonus is the applicable percentage set forth in Section 18:53.040.030 multiplied by the total number of units in the Housing Development (without a Density Bonus). .0203 Fractional Units.All Density Bonus calculations resulting in fractional units shall be rounded up to the next whole number. .030 Types of Affordable Units. The City shall approve a Density Bonus and provide Incentives and/or a Reduced Parking Ratios, as described in this chapter, when an applicant for a Housing Development seeks and agrees to construct a Housing Development that will contain at least one of the following: .0301 Very Low Income. A Housing Development in which at least five percent (5%) of the total units of the Housing Development are Affordable Units to Very Low Income Households, shall be eligible for a Density Bonus as shown in Table 52-A (Very Low Income Density Bonus). Table 52-A VERY LOW INCOME DENSITY BONUS Percentage Very Low Percentage Density Bonus Income Units 5 20 6 22.5 7 25 8 27.5 9 30 10 32.5 11 35 .0302 Lower Income.A Housing Development in which at least ten percent(10%) of the total units of the Housing Development are Affordable Units to Lower Income Households, shall be eligible for a Density Bonus as shown in Table 52-B (Lower Income Density Bonus). Table 52-B LOWER INCOME DENSITY BONUS Percentage Lower Income Percentage Density Units Bonus • 10 20 11 21.5 12 23 6 Table 52-B LOWER INCOME DENSITY BONUS Percentage Lower Income Percentage Density Units Bonus 13 24.5 14 26 15 27.5 16 29 17 30.5 18 32 19 33.5 20 35 .0303 Moderate Income. A Common Interest Development in which at least ten percent (10%) of the total units are Affordable Units to Moderate Income Households, provided that all units in the development are offered to the public for purchase, shall be eligible for a Density Bonus as shown in Table 52-C (Moderate Income Density Bonus). Rental Housing Developments targeted for Moderate Income Households are not eligible for a Density Bonus. Table 52-C MODERATE INCOME DENSITY BONUS Percentage Moderate Percentage Density Bonus Income Units 10 5 11 6 12 7 13 8 14 9 15 10 16 11 17 12 18 13 19 14 20 15 21 16 22 17 23 18 24 19 25 20 26 21 27 22 28 23 29 24 30 25 31 26 • 32 27 33 28 34 29 7 Table 52-C MODERATE INCOME DENSITY BONUS Percentage Moderate Percentage Density Bonus Income Units 35 30 36 31 37 32 38 33 39 34 40 35 .0304 Senior Citizen Housing Development. A Senior Citizen Housing Development shall be eligible for a twenty percent (20%) Density Bonus, unless otherwise prohibited by state and/or federal law. .0305 Specialized Housing Developments. A Housing Development for Transitional Foster Youth, Disabled Veterans, or Homeless Persons, in which at least ten percent (10%) of the total units are provided at the same affordability level as very low income units shall be eligible for a twenty percent (20%) Density Bonus. Such Housing Developments shall be subject to a recorded affordability restriction of 55 years, .0306 Student Housing Developments. A Housing Development in which at least twenty percent(20%)of the total units are for Lower Income Students shall be eligible for a thirty- five percent(35%) Density Bonus, if all of the following requirements are met: .01 The term "unit" as used in this subsection shall mean one (1) rental bed and its pro rata share of associated common area facilities. The units described in this subsection shall be subject to a recorded affordability restriction of 55 years. .02 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. As a condition of receiving a certificate of occupancy, the developer shall provide evidence to the City that the developer has entered into an operating agreement or master lease with one or more institution(s) of higher education, demonstrating that all units of the student Housing Development will be occupied with students from that institution(s). If, in any subsequent year, there are not sufficient students enrolled in such institution to fill all units in the student Housing Development, the required operating agreement or master lease shall be deemed to be in.compliance. .03 The rent provided in the applicable units shall be calculated at thirty percent(30%) of sixty five percent(65%) of the area median income for a single-room occupancy unit type. .04 The development shall provide priority for the applicable Affordable Units for Lower Income Students experiencing homelessness. A homeless service provider, as defined in Section 103577 of the California 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. .0307 One Hundred Percent Affordable Housing Development. A Housing Development in which one hundred percent (100%) of the total units, exclusive of a manager's unit, are for Lower Income Households, except that up to twenty percent (20%) of the total units may be for moderate-income households,shall be eligible for a Density Bonus of an eighty percent (80%)of the total number of lower income units.Additionally,no maximum density controls shall 8 be imposed if the Housing Development is located within one-half mile of a Major Transit Stop. Such Housing Development shall comply with all of the following: .01 The rent for at least twenty percent (20%) of the units in the development shall be set at an Affordable Rent. .02 The rent for the remaining units in the development shall be set at an amount consistent with the maximum rent levels for a Housing Development that receives an allocation of state or federal low-income housing tax credits from the California Tax Credit Allocation Committee. .0308 Redevelopment of Existing Dwelling Units. A Housing Development is ineligible for a Density Bonus, Incentive, Reduced Parking Ratio or any other concessions under this chapter if the Housing Development involves redevelopment of existing rental dwelling units, or existing rental dwelling units that have been vacated or demolished in the five-year period preceding the date of the Housing Incentive Application, that have been subject to a recorded covenant, ordinance, law, or any other form of rent or price control that restricts rents to levels affordable to persons and families of lower or very low income or that have been occupied by Lower or Very Low Income Households, unless the proposed Housing Development replaces those units and either of the following applies: .01 The proposed Housing Development,inclusive of the units replaced, contains Affordable Units at the percentages set forth in Section 18.52.040 (General Density Bonus) of this chapter. .02 Each unit in the development, exclusive of a manager's unit, is affordable to, and occupied by, either a Lower or very low income household. .03 Replacement Units. Dwelling units replaced under this subsection shall comply with Section 65915(c)(3)(B) and (C) of California Government Code. .040 Multiple Types of Affordable Units. If a Housing Development includes multiple types of Affordable Units, the applicant shall choose a single type of Affordable Unit to calculate the Density Bonus. Different types of Affordable Units may be combined as follows: .0401 Very Low Income Units. Units that are affordable to Very Low Income Households may be calculated according.to Table 52-B (Lower Income Density Bonus); or, if the units are in a Common Interest Development, the units may be calculated according to Table 52- C (Moderate Income Density Bonus). .0402 Lower Income Units. Units that are affordable to Lower Income Households and are in a Common Interest Development may be calculated according to Table 52- C (Moderate Income Density Bonus); if the units are not affordable to Very Low Income Households, they shall not be calculated according to Table 52-A (Very Low Income Density Bonus). .0403 Moderate Income Units. Units in a Common Interest Development that are affordable to Moderate Income Households shall only be calculated according to Table 52-C (Moderate Income Density Bonus).A Density Bonus is not applicable to rental units for Moderate Income Households. .050 Lesser Density Bonuses. In cases where the applicant requests a density increase less than that identified in this section, no reduction will be allowed in the number of Affordable Units required. 18.52.050 TRANSFER OF LAND. .010 General. An applicant for a tentative subdivision map, parcel map, or other residential development requesting a Density Bonus,Incentives and/or Reduced Parking Ratios by 9 donating land to the City for the development of Affordable Units for Very Low Income Households shall comply with the following requirements: .0101 Minimum Site Requirements. The transferred land shall meet all of the following minimum site requirements: .01 The land shall be at least one (1) net acre or of sufficient size to permit development of at least forty(40)units. .02 The land shall be of sufficient size to permit construction of Affordable Units for Very Low Income Households equal to or greater than ten percent (10%) of the number of units proposed by the associated subdivision map, parcel map or residential development approval. The number of Affordable Units shall be used to calculate the Density Bonus pursuant to Subsection 18.52.050.020 (Density Bonus Calculations). .03 The land shall have the appropriate zoning and general plan designations to permit construction pursuant to .01 and .02 above. .04 The land shall or will be served by adequate public facilities and infrastructure. .05 The land shall be within the boundary of the proposed development or another suitable location subject to the approval of the Executive Director of Community and Economic Development Department. .0102 Permits and Approvals. No later than the date of approval of the final subdivision map,parcel map, or of the residential development,the transferred land shall have all of the permits and approvals, other than building permits, necessary for the development of the Affordable Units for Very Low Income Households on the transferred land, except that the City may subject the proposed development to subsequent design review, to the extent authorized by subdivision (i) of Government Code Section 65583.2, if the design is not reviewed by the City prior to the time of transfer. .0103 Date of Transfer. The applicant shall donate and transfer land no later than the date of approval of the final subdivision map, parcel map, or residential development application. .0104 Land Recipient. The land shall be transferred to the City or to a housing developer approved by the Executive Director of Community and Economic Development Department. The Executive Director may require the applicant to identify and transfer the land to the developer. .0105 Length of Affordability. The Affordable Units built on the transferred land shall remain restricted to an Affordable Rent for Very Low Income Households for a period of at least fifty-five (55) years, or a longer period of time if required by the construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy program except as otherwise provided for by California Government Code Section 65915. .020 Density Bonus Calculations. An application for a Density Bonus pursuant to this subsection that meets the requirements of this chapter shall be eligible for a Density Bonus as shown in Table 52-D (Transfer of Land Density Bonus). .0201 Percentage. The percentage of Affordable Units (the first column in Table 52-D) is the number of Affordable Units that shall be built on the transferred land divided by the total number of units in the proposed Housing Development(without a Density Bonus). .0202 Number of Density Bonus Units. The number of units granted by the Density Bonus is the percentage Density Bonus (the second column in Table 52-D)multiplied by the total number of units in the Housing Development(without a Density Bonus). .0203 Fractional Units. All Density Bonus calculations resulting in fractional units shall be rounded up to the next whole number. 10 Table 52-D TRANSFER OF LAND DENSITY BONUS Percentage Very Low Percentage Density Bonus Income Units 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 .030 Lesser Density Bonuses. In cases where the applicant requests a density increase less than that identified in this section, no reduction will be allowed in the number of Affordable Units required. .050 Combination. A Density Bonus pursuant to this section shall be in addition to any increase in density mandated by Section 18.52.040 (General Density Bonus), up to a maximum combined density increase of thirty-five percent (35%) if an applicant seeks both the increase required pursuant to this section and Section 18.52.040 (General Density Bonus). 18.52.060 CONDOMINIUM CONVERSION. .010 General. An application request for a Density Bonus, Incentives and/or Reduced Parking Ratios processed in conjunction with a conditional use permit for a condominium conversion shall comply with California Government Code Section 65915.5: .0101 Density Bonus. Up to twenty-five percent (25%) over the number of apartments otherwise permitted by Title 18 (Zoning), to be provided within the existing structure or structures proposed for conversion. .0102 Other Incentives of Equivalent Financial Value. For purposes of this section, "other Incentives of equivalent financial value" shall not be construed to require the City to provide cash transfer payments or other monetary compensation but may include the reduction or waiver of requirements which the City might otherwise apply as conditions of conversion approval. 11 .020 Condominium Conversion Requirements. An application for a Density Bonus pursuant to this section shall meet the following requirements: .0201 Affordable Unit Options. Affordable Units shall be provided in accordance with one of the following two options: .01 Low or Moderate Income. At least thirty-three percent(33%) of the total units of the proposed condominium project, including any units that are granted by a Density Bonus, shall be Affordable Units to Low or Moderate Income Households, or .02 Lower Income. At least fifteen percent (15%) of the total units of the proposed condominium project, including any units that are granted by a Density Bonus, shall be Affordable Units to Lower Income Households. .0202 Pre-File Application. An applicant for approval to convert apartments to a condominium project shall submit to the City a pre-file application pursuant to Chapter 18.60 (Procedures)prior to the submittal of any formal requests for subdivision map approvals. .0203 Conditional Use Permit. An applicant for approval to convert apartments to a condominium project shall submit a request for a conditional use permit pursuant to the requirements of Section 18.38.100 (Condominium Conversions) and a Housing Incentives Application pursuant to the requirements of this chapter.Nothing in this section shall be construed to require the City to approve a proposal to convert apartments to a condominium project. .0204 Ineligible Condominium Conversions. An applicant shall be ineligible for a Density Bonus or other Incentives under this section if the apartments proposed for conversion constitute a Housing Development for which a Density Bonus or other Incentives were already provided under this chapter. .030 Conditions of Approval. The City may place such reasonable conditions on the granting of the Density Bonus or other Incentives pursuant to this section, as it finds appropriate, including,but not limited to,conditions which assure continued affordability of units to subsequent purchasers of Lower, Low and Moderate Income Households. 18.52.070 CHILDCARE FACILITIES. .010 General. A Housing Development that conforms to the requirements of Section 18.52.040 (General Density Bonus) and includes a Childcare Facility that will be located on the premises of, as part of, or adjacent to,the project, and meets the requirements of this section, shall be eligible for either of the following: .0101 Density Bonus. An additional Density Bonus that is an amount of square feet of residential space that is equal to or greater than the amount of square feet in the Childcare Facility; or .0102 Incentive. An additional Incentive that contributes significantly to the economic feasibility of the construction of the Childcare Facility. .020 Childcare Facilities Requirements. An application for a Density Bonus pursuant to this section shall meet the following requirements: .0201 Operation. The Childcare Facility shall remain in operation for a period of time that is as long or longer than the period of time during which the Affordable Units are required to remain affordable pursuant to Section 18.52.040 (General Density Bonus). .0202 Enrollment. Of the children who attend the Childcare Facility, the percentage of children from Very Low Income Households, Lower Income Households, or Moderate Income Households shall be equal to or greater than the percentage of Affordable Units that are required for Very Low Income Households, Lower Income Households, or Moderate Income Households pursuant to Section 18.52.040 (General Density Bonus). 12 18.52.080 AFFORDABLE RENTAL HOUSING DEVELOPMENT. .010 General. An Affordable Rental Housing Development that meets the requirements of this section, at the request of the applicant, shall be granted all of the following: .0101 Density Bonus. A thirty-five percent (35%) Density Bonus, unless written findings are made in accordance with Section 18.52.120 (Findings). .0102 Incentives. The allowed number of Incentives, as specified in Section 18.52.090 (Development Incentives). .0103 Parking Ratios. The minimum parking requirements for an Affordable Rental Housing Development pursuant to Section 18.52.100 (Parking Ratios). .020 Affordable Rental Housing Development Requirements. An Affordable Rental Housing Development shall meet the following requirements: .0201 Minimum Site Size. The development site shall not be less than one(1)net acre, provided that, notwithstanding the foregoing, the Planning Director, in his or her discretion, may permit a project on a smaller development site upon a finding that the project can provide enough units to be financially capable of supporting the cost of on-site Professional Management. .0202 Zone. The development site shall be located in a residential zone and shall comply with the standards of the respective zone unless otherwise set forth in this chapter. .0203 Minimum Project Size. The Affordable Rental Housing Development shall consist of not less than thirty six (36) units, provided that, notwithstanding the foregoing, the Planning Director, in his or her discretion, may permit a project with fewer units to qualify as an Affordable Rental Housing Development upon a finding that the project is financially capable of supporting the cost of on-site Professional Management. .0204 Affordable Units. A minimum of twenty percent(20%)of the total units in the project or five(5)units,whichever is greater, shall be restricted to an Affordable Rent for Very Low Income Households for not less than fifty-five (55) years. The Affordable Rent shall be determined based on the household and unit size assumptions shown in Table 52-E (Affordable Rental Housing Development Household and Unit Size Assumptions) unless the Housing Development is subject to different assumptions imposed by other governmental regulations: Table 52-E AFFORDABLE RENTAL HOUSING DEVELOPMENT HOUSEHOLD AND UNIT SIZE ASSUMPTIONS Unit Size Household Size 1 bedroom 2 persons 2 bedroom 3 persons 3 bedroom 4 persons 4 bedroom 5 persons .0205 Occupancy. Occupancy of each unit in the Affordable Rental Housing Development shall not exceed two (2)persons per bedroom plus one(1)person. .0206 Professional Management. The Housing Incentive Agreement for the Affordable Rental Housing Development shall include provisions that require Professional Management for all of the units within the Affordable Rental Housing Development upon completion of the Affordable Rental Housing Development and prior to occupancy,to provide for the continued maintenance of the property, as specified in Subsection 18.52.040.010.0103.03. .0207 Project Design. The design of the proposed Affordable Rental Housing Development shall: 13 .01 Be compatible with the scale and character of the existing neighborhood and nearby land uses; .02 Preserve the integrity and character of the property's zoning designation and the General Plan; and .03 Comply with the guidelines set forth in the Residential Design Guidelines for Affordable Housing Development produced by the City of Anaheim, the Anaheim Historic District Preservation Plan and any other applicable guidelines adopted by the City from time to time. In the event of a conflict between any of these guidelines and this chapter, the requirements of this chapter shall apply. .04 The design, quality and appearance of the Affordable Units shall be compatible with the design of the total Affordable Rental Housing Development. .0208 Location of Affordable Units. Affordable Units should be built on-site wherever possible and, when practical, be dispersed within the Affordable Rental Housing Development. Circumstances may arise in which the public interest would be served by allowing some or all of the Affordable Units associated with the Affordable Rental Housing Development to be produced and operated at an.alternative development site. Where the applicant and the City form such an agreement,the resulting linked developments shall be considered a single Affordable Rental Housing Development for purposes of this chapter. Under these circumstances, the applicant shall be subject to the same requirements of this chapter for the Affordable Units to be provided on the alternative site. 18.52.090 DEVELOPMENT INCENTIVES. .010 General. The City shall grant the number of Incentives as indicated in Table 52-F below,unless written findings are made in accordance with Section 18.52.120(Findings),with the exception of Tier One Incentives for an Affordable Rental Housing Development, which are not subject to discretionary review or denial.The City reserves the right to allow additional Incentives. .0101 Density Bonus. An applicant that meets the requirements for a Density Bonus, as specified in Sections 18.52.040 (General Density Bonus), 18.52.050 (Transfer of Land) or 18.52.060(Condominium Conversion) shall as a minimum be granted the number of Incentives identified in Table 52-F (Number of Incentives by Level of Affordability). An applicant that proposes a Childcare Facility that meets the requirements specified in 18.52.070 (Childcare Facilities) shall be granted one(1) additional Incentive. Table 52-F NUMBER OF INCENTIVES BY LEVEL OF AFFORDABILITY Level of Percentage of Affordable Number of Development Affordability Units Incentives* Very Low Income At Least 5% 1 At Least 10% 2 At Least 15% 3 100% (up to 20% can be All Tier One Incentives plus moderate income)** up to 3 Tier Two Incentives Lower Income At Least 10% 1 At Least 20% 2 At Least 30% 3 100% (up to 20% can be All Tier One Incentives plus moderate income)** up to 3 Tier Two Incentives At Least 10% 1 14 Table 52-F NUMBER OF INCENTIVES BY LEVEL OF AFFORDABILITY Level of Percentage of Affordable Number of Development Affordability Units Incentives* Moderate Income At Least 20% 2 (Common Interest At Least 30% 3 Developments only) *An additional Incentive may be granted if the applicant is proposing a Childcare Facility per the requirements of Section 18.52.070 (Childcare Facilities). **If housing project is located within one-half mile of a Major Transit Stop, the project shall also receive a height increase of up to three additional stories, or 33 feet. The allowed height increase under this section shall not be counted towards the allowed number of Incentives. .0102 Affordable Rental Housing Development. An applicant that meets the requirements for an Affordable Rental Housing Development, as specified in Section 18.52.080 (Affordable Rental Housing Development), shall be granted the following number of Incentives: .01. Tier One Incentives. Any and all Tier One Incentives, as specified in this subsection. These Incentives shall not count towards the minimum number of Incentives granted or be subject to discretionary review or denial. .02. Tier Two Incentives. Three Tier Two Incentives, unless written findings are made in accordance with Section 18.52.120 (Findings). .020 Equivalent Financial Incentive. The City may offer an equivalent financial incentive in lieu of granting a Density Bonus and an additional Incentive(s). The value of the equivalent financial incentive shall equal at least the land cost per dwelling unit savings that would result from the Density Bonus and additional Incentive, as supported by an independent analysis of the applicant's property, and must contribute significantly to the economic feasibility of providing the Affordable Units pursuant to this chapter. .030 Tier One Incentives. The following Incentives shall be granted through the ministerial review procedures defined in Section 18.52.110 (Application Review): .0301 Site Coverage. The maximum allowable site coverage may be increased to ninety percent(90%)for any fully subterranean garage and to sixty-five percent(65%)for all other structures. .0302 .Minimum Tree Size. The minimum tree size of fifty percent (50%) of the required trees may be decreased from the required twenty four(24) inch box size to a fifteen(15) gallon size. .0303 Irregular Lot. An applicant for a Housing Development sited on an Irregular Lot may request a ten percent(10%) deviation of the structural setbacks requirements specified in Section 18.06.090 (Structural Setbacks) of Chapter 18.06 (Multiple-Family Residential Zones). Multiple requests pursuant to this subsection shall only be counted as one (1) Incentive towards the number of Incentives granted as specified in Subsection 18.52.090.010 (General). .0304 Lot with Multiple Street Frontages. An applicant for a Housing Development on a Lot with Multiple Street Frontages may request a reduced landscape setback of not less than fifteen (15) feet in depth along any arterial highway, measured from the planned highway right-of-way line, as indicated in the Circulation Element of the General Plan and a reduced landscaped setback of not less than ten (10) feet in depth on all other streets. Multiple requests pursuant to this subsection shall only be counted as one(1) Incentive towards the number of Tier One Incentives permitted under Subsection 18.52.090.010 (General). 15 .0305 Maximum Building Height. An increase in the maximum allowable building height and/or stories up to four (4) stories when such structure is located more than one hundred fifty (150) feet from any single-family residential zone boundary or Mobilehome Park (MHP) Overlay Zone. Approval of this Incentive shall substitute for any requirement for a conditional use permit to allow building heights up to four(4) stories. .0306 Interior Lot Line Setbacks. The required interior lot line setback may be reduced in conformance with Table 52-G (Setbacks from Interior Property Lines) below. A minimum five(5)-foot wide landscaped setback shall be provided.For purposes of this subsection, minimum interior setbacks shall be determined independently for each story of the structure. Each setback reduction shall be counted as one(1)Incentive towards the number of Tier One Incentives permitted under Subsection 18.52.090.010 (General). Building wall types are defined as follows: .01 Primary. Building walls that contain entrances and exits and/or windows opening into living spaces where most activity occurs, such as dining rooms, living rooms, family rooms, kitchens and bedrooms. Building walls with balconies are also included. .02 Secondary. Building walls that contain windows opening into bathrooms, closets, stairwells and corridors. .03 Blank. Building walls with no window openings or points of access. Table 52-G SETBACKS FROM INTERIOR PROPERTY LINES Adjacent to a Single- Adjacent to all Family Residential Other Zones Zone Two-Story Structures Primary Wall 30 feet 10 feet Secondary or Blank Wall 15 feet 10 feet Three-Story Structures Primary Wall 35 feet 15 feet Secondary or Blank Wall 20 feet 10 feet Four-Story Structures* Primary Wall 55 feet 15 feet Secondary or Blank Wall 45 feet 10 feet * The reduced interior lot line setback is a Tier One Incentive; an increase in the maximum allowable building height up to four(4) stories is a separate Incentive. .0307 Setbacks Between Buildings. The required building separation setback may be reduced in conformance with Table 52-H(Setbacks Between Buildings). If a building is parallel to another building of a different height, the setback for each wall as shown in the following table shall be halved for each building, and then combined to determine the total setback between the buildings. Each setback reduction shall be counted as one(1)Incentive towards the number of Tier One Incentives permitted under Section 18.52.090.010(General). Building wall types are defined as follows: .01 Primary. Building walls that contain entrances and exits and/or windows opening into living spaces where most activity occurs, such as dining rooms, living rooms, family rooms, kitchens and bedrooms. Building walls with balconies are also included. .02 Secondary. Building walls that contain windows opening into bathrooms, closets, stairwells and corridors. .03 Blank. Building walls with no window openings or points of access. 16 Table 52-H SETBACKS BETWEEN BUILDINGS Two-Story Structures Wall Type Primary Secondary Blank Primary 25 feet 10 feet 10 feet Secondary 10 feet 10 feet 10 feet Blank 10 feet 10 feet 10 feet Three-Story Structures Primary Secondary Blank Primary 35 feet 10 feet 10 feet Secondary 10 feet 10 feet 10 feet Blank 10 feet 10 feet 10 feet Four-Story Structures* Primary Secondary Blank Primary 45 feet 30 feet 20 feet Secondary 30 feet 25 feet 20 feet Blank 20 feet 20 feet 20 feet *The reduced setback between buildings is a Tier One Incentive; an increase in the maximum allowable building height up to four(4) stories is a separate Incentive. .0308 Accessory Uses with Community Benefit. A Housing Development that meets the requirements of Section 18.52.080 (Affordable Rental Housing Development) or Subsection 18.52.040.030.0307 of this chapter may include non-residential accessory use(s) that provide necessary services and benefits to the residents of the Housing Development and the surrounding community. Such accessory uses may include medical, educational,professional,and personal services, or any other uses deemed appropriate by the Community and Economic Development Director, which are available to the residents of the Housing Development and surrounding community. Prior to granting of this Incentive, an operations plan and/or agreement shall be submitted for review and approval by the Community and Economic Development Director to ensure that the accessory use does not impact the surrounding community and that the accessory use is operated as an ancillary component of the primary residential use. .040 Tier Two Incentives. The following Incentives shall be granted through the public hearing review procedures defined in Section 18.52.110 (Application Review): .0401 Right-of-Way. A reduction of public right-of-way dedication or improvements. .0402 Maximum Building Height. An increase in the maximum allowable building height and/or stories up to four (4) stories maximum height. Approval of this Incentive shall substitute for any requirement for a conditional use permit to allow building heights up to four(4) stories. .0403 Mixed Use Zone. Approval of mixed-use zoning in conjunction with a Housing Development subject to the following requirements: .01 The commercial,office,industrial,or other land uses will reduce the cost of the Housing Development. .02 The commercial, office, industrial, or other land uses are compatible with the Housing Development and the existing or planned development in the area where the proposed Housing Development will be located. .03 The request is in conjunction with any required applications for a zoning reclassification and/or General Plan amendment for a mixed-use designation. 17 .0404 Any Other Development Standard. Any other relief from a Development Standard proposed by the applicant or the City that will result in identifiable and actual cost reductions or avoidance. Each request for relief under this subsection shall be counted as one (1) Incentive towards the number of Tier Two Incentives allowed under Subsection 18.52.090.010 (General). .050 Modification of an Approved Incentive. If an applicant has been granted an Incentive and the proposed plans for the Housing Development are revised and the revised plans require modification of the approved Incentive, the Planning Director may approve such modification unless written findings are made in accordance with Section 18.52.120 (Findings). If the Planning Director determines that the request constitutes a substantial modification or a request for a new Incentive, the request shall be processed pursuant to Section 18.52.110 (Application Review). 18.52.100 PARKING RATIOS. .010 Applicable Parking Ratios. An applicant for a Housing Development that meets the criteria for either a Density Bonus or an Affordable Rental Housing Development, at the applicant's request,may utilize the related Parking Ratios shown in Table 52-I (Reduced Parking Ratios). These Parking Ratios include handicapped and guest parking. Table 52-I REDUCED PARKING RATIOS Total Number Minimum Number of Required Parking Spaces per of Bedrooms Unit Density Bonus Affordable Rental Housing Housing Development Development* and 100% Affordable Housing Development Studio unit 1 1 1-bedroom 1 1 2-bedrooms 2 1.5 3-bedrooms 2 2 4 or more 2.5 2 bedrooms *Implementation of the Affordable Rental Housing Development Parking Ratio shall be subject to a limitation on the number of vehicles permitted, equal to the number of parking spaces provided. Parking spaces shall be used only for parking operable vehicles. Such limitations shall remain in full force and effect for so long as the Affordable Rental Housing Development is maintained as multiple-family housing, or until the Housing Incentive Agreement is terminated by the City. .020 Additional Reduction in Parking Ratios. At the applicant's request, the following Housing Developments may utilize related additionally reduced Parking Ratios shown in Table 52-J (Additionally Reduced Parking Ratios), inclusive of handicapped and guest parking, as follows: Table 52-J ADDITIONALLY REDUCED PARKING RATIOS 18 Type of Density Bonus Housing Minimum Number Special Provisions Development of Required Parking Spaces Rental and for-sale Housing 0.5 per bedroom Must be located within one-half Developments with minimum mile from a Major Transit Stop 11%very low income or 20% and have an unobstructed access low income units to that Major Transit Stop Rental Housing Developments 0.5 per unit Must be located within one-half with 100% of units for lower mile from a Major Transit Stop income families, exclusive of a and have an unobstructed access manager's unit(s) to that Major Transit Stop Rental Housing Developments 0.5 per unit Must have either a paratransit with 100% of units for lower service or an unobstructed access income individuals who are 62 to a fixed bus route service that years of age or older that operates at least eight times a day complies with Sections 51.2 and within one-half mile from the 51.3 of the Civil Code, exclusive development of a manager's unit(s) Special Needs Housing No minimum number Must have either a paratransit Developments as defined in of parking space service or an unobstructed access Section 51312 of the Health and required to a fixed bus route service that Safety Code or Supportive operates at least eight times a day Housing Developments, as within one-half mile from the defined in Section 50675.14 of development the California Health and Safety Code, in which 100% of units are rental units for lower income families, exclusive of a manager's unit(s) .030 Fractional Spaces. If the total number of parking spaces required is not a whole number,the number shall be rounded up to the next whole number. .040 Tandem, Uncovered and On-Street Parking. For purposes of this subsection, a development may provide onsite parking through tandem parking or uncovered parking, but not through parking on public streets or alleys. .050 Development Incentives. The Parking Ratios offered in this section shall not count as one of the Incentives applicants are entitled to under Section 18.52.090 (Development Incentives). An applicant may request a further reduction in the minimum number of parking spaces required by this section as a Tier Two Incentive,subject to Section 18.52.090(Development Incentives). 18.52.110 APPLICATION REVIEW. .010 Review. Any request pursuant to this chapter shall be processed concurrently with any other application(s) required for the Housing Development, including any that include discretionary land use decisions. The granting of a Density Bonus or Incentive pursuant to this chapter is a ministerial review and shall not be interpreted, in and of itself, to require a General Plan amendment, zoning reclassification, or other discretionary approval. Final determination of 19 conformance with the requirements of this chapter(with right of appeal to the City Council) shall be made as follows: .0101 Planning Director Review. The Planning Director is the review authority for all requests pursuant to this chapter, except Tier Two Incentives, as specified in Section 18.52.090 (Development Incentives), and requests for direct financial assistance. .0102 Planning Commission Review. The Planning Commission is the review authority for all Tier Two Incentives, as specified in 18.52.090 (Development Incentives). Planning Commission review shall be at a public hearing held in accordance with the procedures set forth for public hearings in Chapter 18.60 (Procedures). The Planning Commission shall make a determination as to the developer's compliance with this chapter. .0103 City Council Review. The City Council is the review authority for all requests for direct financial assistance. City Council review shall be at a public hearing held in accordance with the procedures set forth for public hearings in Chapter 18.60 (Procedures). .020 Joint Pre-Application Conference with staff from Planning and Building and Community and Economic Development Departments. Applicants for a request pursuant to this chapter shall schedule a joint pre-application conference with, and such conference shall be granted by, the Community and Economic Development Department to discuss and identify potential application issues, including any additional Incentives requested pursuant to Section 18.52.090 (Development Incentives). No charge will be required for the pre-application conference. .030 (Reserved). .040 Housing Incentives Application. The record owner or owners of each property comprising the proposed Housing Development site shall file a completed Housing Incentives Application with the Planning and Building Department as stipulated in the application on forms prescribed by the Planning Director. Applications shall include all required information and identified materials, including but not be limited to, the following: .0401 Project Description. A brief description of the proposed Housing Development, including the total number of units; Affordable Units, including the proposed level of affordability; and Density Bonus Units. .0402 Density Bonus. The type of Density Bonus applied for as described in Sections 18.52.040 (General Density Bonus), 18.52.050 (Transfer of Land), 18.52.060 (Condominium Conversion), 18.52.070 (Childcare Facilities), and 18.52.080 (Affordable Rental Housing Development). .0403 Development Incentives. A list and, as applicable, plans (site plan, elevations, etc.) indicating the Incentives requested. .0404 Parking Ratios. A site plan indicating the proposed location and number of parking spaces. .0405 Documentation. Documentation establishing eligibility for a requested Density Bonus, Incentives and/or Reduced Parking Ratios. Such documentation shall include information satisfactory to the Planning Director, the Executive Director of the Community and Economic Development Department and/or the City Council that the Density Bonus, Incentives and/or Reduced Parking Ratios results in an identifiable and actual cost reduction to provide for an Affordable Housing Cost or for rents for the targeted units to be set as specified in California Government Code Section 65915(c). .0406 Environmental Documentation. The applicant shall provide documentation to the satisfaction of the Planning Director,Planning Commission, or City Council, as applicable, that the proposed project has no specific, adverse impact upon health, safety, or the physical environment, for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact unless a statement of overriding consideration is adopted pursuant to California 20 Environmental Quality Act Guidelines, and that there are no adverse impacts to any real property that is listed in the California Register of Historical Resources. .0407 Housing Incentives Memorandum. An executed memorandum of understanding in such form as is reasonably satisfactory to the City acknowledging the basic terms of the Housing Incentive Agreement, including the number of Affordable Units required under this chapter, as well as the unit type and Affordable Rent or Affordable Housing Cost, as applicable, for such units. Approval of such memorandum by the Community and Economic Development Department shall be a prerequisite to the Planning and Building Department or Planning Commission undertaking final action on the application. Rough grading and building permits shall not be issued until such time that the Housing Incentive Memorandum has been executed and the Housing Incentive Agreement has been recorded. .0408 Additional Information. Any other information as may be required by the Planning and Building and/or Community and Economic Development Departments. .0409 Fees. Applications not initiated by the City or the City's Housing Authority shall be accompanied by a filing fee as set forth in Chapter 18.80 (Fees). .050 Determination of Application Completeness. All applications submitted to the Planning and Building Department will be processed to determine their completeness in accordance with Section 18.60.050 (Determination of Application Completeness) of Chapter 18.60 (Procedures). If after the initial review period, the application is deemed complete, City staff shall continue to process the request. If the application is incomplete, the applicant shall be informed in writing that additional specified information must be provided. .060 Modification of Application. An application may be modified by the applicant. Any prior finding of application completeness may be voided by submittal of a modification. Depending on the type and substance of the modification, the modified application may be distributed again for review and may require payment of a supplemental application fee. .070 Project Review. Applications shall be reviewed by both the Planning and Building and the Community and Economic Development Departments for compliance with the provisions of this chapter, including affordability and design requirements. Applications shall be reviewed by other City departments where appropriate. Such review shall include a review of compliance with this chapter and other City codes. The Community and Economic Development Department and/or the Planning and Building Department may make a recommendation to the approval authority regarding any additional, alternative or equivalent financial Incentives. .080 Additional or Alternative Incentives. The Planning and Building Department shall inform the applicant if additional,alternative or modified Incentives pursuant to Section 18.52.090 (Development Incentives) will be recommended for consideration in lieu of or in addition to the requested Incentives or that the Incentives requested by the applicant are not appropriate or needed for the proposed Housing Development. If alternative or modified Incentives are recommended, the recommendation shall establish how the Incentives can be expected to have an equivalent affordability effect as the Incentives requested by the applicant. .090 Conditions of Approval. Conditions of approval may be utilized for the following: .0901 Condominium Conversion Density Bonus. If the applicant has applied for a Density Bonus or Incentive related to a conditional use permit for a condominium conversion, pursuant to Section 18.52.060 (Condominium Conversion), the City may place such reasonable conditions on the granting of the Density Bonus or Incentive(s) as it finds appropriate, including, but not limited to, conditions which assure continued affordability of the units to subsequent purchasers who are Lower, Low or Moderate Income Households. .0902 Childcare Facilities. If the applicant has applied for a Density Bonus or Incentive related to the provision of a Childcare Facility,pursuant to Section 18.52.070 (Childcare 21 Facilities),then, as a condition of approval of the Housing Development, the applicant shall agree to the following: .01 Operation. 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 Affordable Units are required to remain affordable pursuant to Section 18.52.040 (General Density Bonus). .02 Enrollment. Of the children who attend the Childcare Facility, the percentage of children from Very Low Income Households, Lower Income Households, or Moderate Income Households shall be equal to or greater than the percentage of Affordable Units that are required for Very Low Income Households, Lower Income Households, or Moderate Income Households pursuant to Section 18.52.040 (General Density Bonus). 18.52.120 FINDINGS. .010 Density Bonus and Incentives. The City shall approve the request for a Density Bonus and/or Incentives pursuant to Section 18.52.040 (General Density Bonus), 18.52.050 (Transfer of Land), 18.52.060 (Condominium Conversion), 18.52.080 (Affordable Multiple Family Residential Development); or, 18.52.090 (Development Incentives), unless it makes a written finding,based upon substantial evidence, of either of the following: .0101 That the Density Bonus, Incentives or Reduced Parking Ratio does not result in identifiable and actual cost reductions to provide for an Affordable Housing Cost or for rents for the targeted units to be set as specified in California Government Code Section 65915(c); or .0102 That the Density Bonus or Incentive would have a specific adverse impact upon public health and safety or on the physical environment, or on any real property that is listed in the California Register of Historical Resources, and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact without rendering the development unaffordable to Very Low, Low, Lower, or Moderate Income Households. .020 Childcare Facilities. The City shall approve the request for additional Density Bonus or Incentive for the provision of a Childcare Facility, -as specified in Section 18.52.070 (Childcare Facilities),unless it makes the written findings set forth in Sections 18.52.120.0101 and 18.52.120.0102 and the following additional finding,based upon substantial evidence: .0201 That the community has adequate Childcare Facilities. .030 Tier one Incentives for an Affordable Rental Housing Development are not subject to discretionary review or denial,pursuant to 18.52.080(Affordable Rental Housing Development) and 18.52.090 (Development Incentives), and do not require written findings. 18.52.130 NOTICE OF APPROVAL OR DENIAL. .010 Written Notification. Not later than ten (10) days after the approval or denial of a Housing Incentive Application, the Planning and Building Department shall prepare and mail to the applicant and property owner a formal written notice of the action. .020 Written Findings. If the Planning Director or Planning Commission makes any of the findings set forth in Section 18.52.120 (Findings), the written finding(s) shall be provided to the applicant in or with the written notice. .030 Effective Date. Notwithstanding the foregoing,approval shall not be effective until applicant executes a Housing Incentive Agreements in accordance with Section 18.52.150 (Housing Incentive Agreement). 18.52.140 APPEALS. 22 The procedures for appeals related to a Housing Incentive Applications shall follow those set forth in Sections 18.60.130 (Appeals—Planning Commission Decisions), 18.60.135 (Appeals —Planning Director Decisions), and 18.60.140 (Appeal Authority). 18.52.150 TIME TO EXERCISE ENTITLEMENT. The approved term to obtain building permits, thereby exercising the entitlement for a Density Bonus or Incentive(s), shall be two (2) years from the date of approval. Such time limitation maybe extended in the same manner as the extension of time to comply with conditions of approval as set forth in Section 18.60.170 (Extension of Time to Comply with Conditions of Approval). The Planning Director shall be the approval authority for time extensions. 18.52.160 HOUSING INCENTIVES AGREEMENT. .010 Agreement Required. Applicants utilizing this chapter shall enter into a Housing Incentives Agreement with the City in accordance with this chapter and in a form and substance acceptable to the City. The terms of the agreement shall be reviewed,revised and approved by the Community and Economic Development Department. .020 Compliance with this Chapter. The Housing Incentives Agreement shall require continued compliance with the requirements of this chapter and, if applicable, the provisions required by Section 65916 of the California Government Code. .030 Recordation. Following execution of the Housing Incentives Agreement by all parties, the completed agreement, or; if required by the Housing Incentives Agreement, a declaration of covenants, conditions and restrictions,shall be recorded as a restriction on the parcel or parcels designated for the construction of the Affordable Units. The recordation shall take place prior to final map approval, or,where a map is not being processed,prior to issuance of any rough grading and building permits, with the exception of demolition permits for such parcels or units. The Housing Incentives Agreement shall be binding on the developer of the Housing Development and all future owners and successors in interest thereof. .040 Affordable Rental Housing Development. The Housing Incentives Agreement for an Affordable Rental Housing Development, pursuant to the requirements of Section 18.52.080 (Affordable Rental Housing Development), shall include,but not be limited to, the following: .0401 Third Party Beneficiaries.The Anaheim Housing Authority shall be a third- party beneficiary of the Housing Incentives Agreement; .0402 Number of Units. The total number of units approved for the Affordable Rental Housing Development, including the number of Affordable Units; .0403 Unit Descriptions. The location, unit sizes (square feet), and number of bedrooms of each of the Affordable Units; .0404 Affordable Rent. The standards for determining the affordable rent for each Affordable Unit; .0405 Term. A term of at least fifty five (55) years; .0406 Density Bonus, Development Incentives and Parking Ratio. A description of any Density Bonus, development Incentive(s), and Parking Ratio,being provided by the City; .0407 Parking Management Plan. If the Affordable Rental Housing Development utilizes a Parking Ratio pursuant to Section 18.52.100 (Parking Ratios), a plan for parking management, which shall include a map depicting which parking spaces are reserved and which are not and shall include procedures for removal of inoperable vehicles and a limitation on the aggregate number of vehicles permitted in the Affordable Rental Housing Development; 23 .0408 Occupancy. Occupancy of each unit in the Housing Development shall not exceed two (2)persons per bedroom,plus one; .0409 Marketing and Tenant Selection Plan.A marketing and tenant selection plan as provided by the Community and Economic Development Department, which shall include the obligation of the owner to provide first priority to people who live or work in the City to rent the Affordable Units to the extent permitted by law and the obligation to provide the Anaheim Housing Authority, at initial lease-up, with a sixty (60) day priority to refer rental applicants under its Section 8 Housing Choice Vouchers Waiting List and its Affordable Housing Waiting List,to the extent permitted by law; .0410 Management Plan. The obligation of the owner to comply with an acceptable written management plan to the Executive Director of the Community and Economic Development Department setting forth the owner's policies and procedures for renting,managing, maintaining and operating the Affordable Rental Housing Development to assure a healthy and secure living environment for the residents,which is consistent with reasonable business practices and property management standards established in Orange County, California, and which shall be attached to the agreement; .0411 Breach of Agreement. A description of remedies for breach of the agreement by either party (the City may identify tenants as third party beneficiaries under the agreement); and .0412 Other Provisions. Other provisions to ensure implementation and compliance with this chapter,matters addressed in the application, and the agreement. .050 Direct Financial Contribution. Where there is a direct financial contribution to a Housing Development pursuant to this chapter through participation in cost of infrastructure, write-down of land costs, or subsidizing the cost of construction, the City shall assure continued availability of Affordable Units for up to a minimum of fifty-five (55) years. When appropriate, the Housing Incentives Agreement shall specify the mechanisms and procedures necessary to carry out this requirement. 18.52.170 CONFLICTS WITH OTHER LAWS. .010 Nothing contained in this chapter shall be deemed to prohibit occupancy by any person of any dwelling unit in an affordable housing project where such prohibition would be in violation of,or conflict with,any provision of State law with which the City of Anaheim is required to conform. In the event of any such conflict, the applicable provision of State law shall prevail. .020 In the event that the provisions of Chapter 4.3 Section 65915 et. seq. of the California Government Code are repealed or changed, the Density Bonus, Parking Ratios and Incentives for Affordable Rental Housing Development as specified in Section 18.52.080 (Affordable Rental Housing Development) shall continue to apply. 18.52.180 PENALTY FOR VIOLATIONS. It shall be unlawful for any person to occupy, or for any owner,operator or manager of any affordable housing project to permit the occupancy of, any dwelling unit within an affordable housing project in violation of any provision of this chapter. Any such violation shall be a misdemeanor punishable in the manner set forth in Section 1.01.370(Violations of Code-Penalty) of Chapter 1.01 (Code Adoption and Construction). Each such person shall be guilty of a separate offense for each and every day during any portion of which any violation of any provision of this chapter is committed, continued or permitted by any such person and shall be punishable accordingly. The criminal sanctions imposed by this section shall be in addition to any civil 24 remedies, at law or in equity,which are otherwise available to the City of Anaheim to remedy such violations. Alternatively, any violation of this Chapter may be enforced by the City, the City's Police Department or an enforcement officer in accordance with the procedures set forth in Chapter 1.20 (Civil Citations) of this code,relating to the issuance of citations, imposing of administrative fines, right to appeal, and the right to an administrative hearing and shall be subject to the imposition and payment of administrative fine(s). SECTION 2. SEVERABILITY. The City Council of the City of Anaheim hereby declares that shouldany section, paragraph, sentence, phrase, term or word of this ordinance be declared for any reason to be invalid, it is the intent of the City Council that it would have adopted all other portions of this ordinance independent of the elimination of any such portion as may be declared invalid. If any section, subdivision,paragraph, sentence, clause or phrase of this Ordinance is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance, .and each section, subdivision, paragraph, sentence, clause and phrase thereof, irrespective of the fact that any one(or more) section, subdivision,paragraph, sentence, clause or phrase had been declared invalid or unconstitutional. SECTION 3. CERTIFICATION The City Clerk shall certify to the passage of this ordinance and shall cause the same to be printed once within fifteen (15) days after its adoption in the Anaheim Bulletin, a newspaper of general circulation,published and circulated in the City of Anaheim. SECTION 4. EFFECTIVE DATE This ordinance shall take effect and be in full force thirty(30) days from and after its final passage. /// /// /// /// /// 25 THE FOREGOING ORDNANCE was introduced at a regular meeting of the City Council of the City of Anaheim held on the 23 day of June ,2020, and thereafter passed and adopted at a regular meeting of said City Council held on the 1 4 day of July 2020, by the following roll call vote: AYES:Mayor Sidhu and Council Members Faessel, Barnes, Brandman, Moreno, and O'Neil NOES:Council Member Kring ABSENT:None ABSTAIN: None CITY 0. ANAHEIM By: A1AgL1 I Ad, . �'/ _ ► • ` 0 . i„ rJ E II •F AHEIM ATTEST: I C - r CITY CLERK 0 HE CITY OF ANAHEIM 137533/LM 26 CLERK'S CERTIFICATE STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss. CITY OF ANAHEIM ) I, THERESA BASS, City Clerk of the City of Anaheim, do hereby certify that the foregoing is the original Ordinance No.6489 introduced at a regular meeting of the City Council of the City of Anaheim, held on the 23rd day of June, 2020, and that the same was duly passed and adopted at a regular meeting of said City Council held on the 14th day of July, 2020, by the following vote of the members thereof: AYES: Mayor Sidhu and Council Members Faessel, Barnes, Brandman, Moreno, and O'Neil NOES: Council Member Kring ABSENT: None ABSTAIN: None IN WITNESS WHEREOF, I have hereunto set my hand this 15th day of July, 2020. CITY CLER ' OF THE CITY OF ANAHEIM (SEAL) Anaheim Bulletin PROOF OF PUBLICATION 2190 S. Towne Centre Place Suite 100 Anaheim, CA 92806 Legal No. 0011398305 714-796-2209 SUMMARY PUBLICATION CITY OF ANAHEIM ORDINANCE NO.6489 AN ORDINANCE OF THE CITY OF ANA- HEIM AMENDING CHAPTER 18.52(DENSI- TY BONUSES) OF TITLE 18 (ZONING) OF 5190168 THE ANAHEIM MUNICIPAL CODE AND FINDING AND DETERMINING THAT THIS ORDINANCE IS EXEMPT FROM THE REQUIREMENTS TO PREPARE AD- DITIONALDOCUMEN- ANAHEIM,CITY OF/CLERKS OFF TATION PERVICALIFORNIIA IO - 200 SANAHEIM BLVD STE 217 MENTAL QUALITY ACT (CEQA) GUIDE- LINES, SECTIONS 15060(C)(2) AND ANAHEIM, CA 92805-3820 15060(C)(3) BECAUSE IT WILL NOT RE- SULT IN A DIRECT OR REASONABLY FORESSEABLE INDIRECT PHYSICAL CHANGE IN THE ENVIRONMENT AND IT IS NOT A PROJECT, AS DEFINED IN SEC- TION 15378 OF THE CEQA GUIDELINES. This ordinance amends various and numerous provi- sions of Chapter 18.52 (DensityBonuses) of Title 18 FILE NO. ORD-6489 (Zoning) of the Anaheim Municipal Code to replicate State's Density Bonus Law, which was enacted to in- crease the State's affordable housing supply. Ordi- AFFIDAVIT OF PUBLICATION nance No. 6489expands the list of proiects eligible for housing incentives, identifies ineligible proiects, im- plements a reduction in parking requirements consis- tent with State law, provides a new incentive for com- STATE OF CALIFORNIA, munity serving accessory uses, allows additional in- centives for housing proiects that meet certain trite- SS. ria,and improves clarity and consistency of terms and definitions. County of Orange I, Theresa Bass, City Clerk of the City of Anaheim, do hereby certify that the foregoing is a summary of Or- dinance No.6489,which ordinance was introduced at a regular meeting of the City Council of the City of Ana- heim on the 23rd day of June,2020 and was duly passed and adopted at a regular meeting of said Council on I am a citizen of the United States and a resident of the the 14th day of July, 2020 by the following roll call vote County aforesaid: I am over the age of eighteen years,and of the members thereof: not a party to or interested in the above-entitled matter. I AYES: Barnes,SB andman,Morena,anbdO'Neessel, am the principal clerk of the Anaheim Bulletin, a NOES: Council Member Kring newspaper that has been adjudged to be a newspaper of ABSENT: None general circulation by the Superior Court of the County of ABSTAIN: None Orange, State of California, on December 28, 1951, Case The above summary is a brief description of the sub No. A-21021 in and for the City of Anaheim, County of iect matter contained in the text of Ordinance No.6489, which has been prepared pursuant to Section 512 of the Orange, State of California: that the notice, of which the Charter of the City of Anaheim. This,summary does ordi- annexed is a true printed copy, has beenpublished in not include or describe every provision of the nance and should not be relied on as a substitute for each regular and entire issue of said newspaper and not in the full text of the ordinance. any supplement thereof on the following dates, to wit: To obtain a copy of the full text of the ordinance, please contact the Office of the City Clerk, (714) 765- 5166, between 8:00 AM and 5:00 PM, Monday through 07/23/2020 Friday. There is no charge for the copy. 138451/LM Published Anaheim Bulletin July 23,2020 11398305 I certify(or declare) under the penalty of perjury under the laws of the State of California that the foregoing is true and correct: Executed at Anaheim, Orange County, California, on Date: July 23, 2020. krciatulery..._ Signature CLERK'S CERTIFICATE STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss. CITY OF ANAHEIM I, THERESA BASS, City Clerk of the City of Anaheim, do hereby certify that the foregoing is the original Ordinance No. 6489 and was published in the Anaheim Bulletin on the 231d day of July, 2020, pursuant to Section 512 of the City Charter of the City of Anaheim. CITY CLE K OF THE CITY OF ANAHEIM (SEAL)