HomeMy WebLinkAboutMINUTES - 05051987 - 1.58 TO: BOARD OF SUPERVISORS
FROM: Harvey E. Bragdon Contra
Director of Community Development CJ'IJJlG1
DATE: April 22, 1987
Cointy
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SUBJECT: Procedures to Implement Density Bonus Provisions of the California
Government Code, and the County' s Housing Element of the General Plan
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SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION
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RECOMMENDATIONS
Adopt procedures to implement Section 65915 of the California
Government ! Code and Policy 1(h) of the County Housing Element of
the Generai Plan relating to a Density Bonus Policy for Affordable
and Senior0Citizen Housing.
BACKGROUND%REASONS FOR RECOMMENDATIONS
Section 65915 of the California Government Code requires that
cities and (,counties provide density bonuses or other financial
incentivesj;to a housing developer who proposes to provide housing
affordablejto low and moderate income households. Policy 1(h) of
the County�,s Housing Element of the General Plan adopted by the
Board of Supervisors on April 23 , 1985 provides local policy
guidance conforming with State law. In order to qualify for a
density bonus of 250 over the otherwise permitted density, a
developer must either agree to:
1. Provide 250 of the base units at rents or prices
Affordable to low and moderate income ( incomes not
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exceeding 1200 of median) ; or
2. Provide 10% of the base units at rents or prices
Affordable to lower income (incomes not in excess of 80%
of median) ; or
3 . Provide 500 of the units to senior citizens (generally 62
years of age and over) .
The attached Procedures to Implement Density Bonus Policy provide
specific direction to developers and staff as it relates to income
levels, rents/prices, calculating the bonus, and agreements
necessary to assure compliance with the provisions. A s ary of
the Procedures is attached as Appendix A.
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CONTINUED ON AZTA6HPIENT: X YES SIGNATURE:
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATTqAF B COMMITTEE
APPROVE ° OTHER
SIGNATURE(S) :
ACTION OF BOARD ON APPROVED AS RECOMMENDED 4r OTHER
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VOTE OF SUPERVISORS
!' I HEREBY CERTIFY THAT THIS IS A,
UNANIMOUS (ABSENT �. ) TRUE AND CORRECT COPY OF AN
AYES: " NOES: ACTION TAKEN AND ENTERED ON THE
ABSENT: j! ABSTAIN: MINUTES OF THE BOARD OF
SUPERVISORS ON THE DATE SHOWN.
cc: Community Development ATTESTED SAY 51987
County Administrator PHIL BATCHELOR, CLERK OF
THEiBOARDOF SUPERVISORS
' COUNTY ADMINISTRATOR
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BY DEPUTY
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Procedidres to Impiement Density Bonus Provisions
of the California ,Government Code, and the
County' s Housing Element of the General Plan
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FINANCIAL IMPACT
The density bonus provisions of State law require that a
city or county provide a density bonus or equivalently
valued financial incentive (fee waivers, modification to
development standards, direct financial assistance) if the
specified low/low and moderate income requirements are met.
Occasionally, a situation may arise in which financial
incentives may be appropriate in lieu of density. Fee
waivers which result in minimal or no effect on needed
infrastructure have historically been preferred. Direct
financial assistance is not anticipated to include general
fund monies, but rather would involve the use of Community
Development Block Grant (CDBG) funds, other local housing
funds; and/or other State and Federal funds as appropriate.
Costs !;incurred in administering the continuing affordability
requirements of the procedures are to be covered in the case
of for sale units by adding County costs into any subsequent
disposition of the property, and in the case of rental
units; by assessing the developer an annual regulatory fee.
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APPENDIX A
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SUMMARY OF DENSITY BONUS PROCEDURES
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I. Development Review/Calculating the Bonus
1. All developments processed with P-1 zoning (Section IV) .
2. Developer must provide certain land use information, preliminary
development cost, and proposal for meeting affordability requirements
with preliminary development application. (Section V)
3. Staff must respond within 90 days as to the County's preferred method
for meeting the density bonus requirements, with the intent of
reaching a mutually agreeable decision. (Section IV)
4. The base density, which is used to calculate the percent of affordable
units and the density bonus, is the number of units allowed using the
General Plan maximum multiplied by 75% for for-sale projects, 80% for
rent 11 developments. (Section VIII)
II. Affordability Requirements
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1. Income Requirements: All income requirements are expressed as a
percent of median as estimated by the U.S. Department of Housing and
Urban Development. While income requirements are adjusted for family
size,! for purposes of presentation an income for a typical family of
four Oill be used. (Section III and Appendix A)
a) Median Income is currently estimated at $36,700 for a family of
,four.
b) 'Low to Moderate Income is up to 120% median or $44,050 for a
;family of four.
c) 'Low Income is up to 80% of median or $29,350 for a family of
Ifour.
2. Affordable Rents: Monthly rents for affordable units will vary
depending on whether the agreed to target group is low to moderate
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income/senior citizens or lower income. (Section III and Section VI)
.a) ;Affordable rents on low to moderate income/senior citizen units
(,are equal to the rents allowed under the Section 8 rent subsidy
;program, which are currently:
it bedroom $517/month
2 bedroom 604/month
3 bedroom 754/month
4 bedroom 837/month
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Summary of Densi,;ty Bonus Procedures
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b) Affordable rents on lower income units are determined by
calculating 30% of 50% of the adjusted monthly median income,
which currently are:
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1 bedroom $370/month
2 bedroom 412/month
3 bedroom 458/month
4 bedroom 488/month
3. To the extent financial hardships may occur as a result of the above
requirements the County may consider limited modifications to the
price/rent requirements. (Section X)
4. Continued affordability is maintained through recorded deed
restrictions on for-sale units and recorded regulatory agreements on
rental projects. (Section IX)
a) Ownership units are to be occupied by lower or low to moderate
,income households for 30 years, or 15 years if continuously
occupied by the same household.
b) AVll affordable rental units are to be reserved for lower or low
,to moderate income household for 15 years.
c) Senior Citizen ownership and rental units are to be occupied by
such households for 30 years.
III. Agreements;
1. For-sale projects will require the execution of two agreements.
Reference to these agreements will be made in conditions of approval
for developments.
a) Developer Sales Agreement is between the County and the
Developer, and will specify, among other things, the number of
density bonus units, income requirements for affordable units,
:'and initial sales price requirements.
b) :Agreement for Density Bonus Units is between the buyer of the
affordable units, and the developer on behalf of the County. It
contains the County's rights of first refusal to purchase the
ilaffordable units, and specifies procedures for said purchase, and
„determining the sales price upon resale.
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2. For rental projects the Regulatory Agreement and Declaration of
Restrictive Covenants is the only agreement. Between the County and
the Developer, the Regulatory Agreement contains all of the terms and
condi Itions of the density bonus provisions (rent levels, income
requirements, etc. ) as well as reporting requirements to assurance
compliiance thereto.
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