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HomeMy WebLinkAbout02-21-2024_Open Session_Item 6_Kim, AnthonyEXECUTIVE DIRECTOR Tessie Solorzano, Esq. BOARD OF DIRECTORS Erica Alfaro, Esq., President Marvin Powell Jr., Vice President Rebecca Eckley, Esq., Secretary Christina Perez, Treasurer Daniel Aguilar Goushia Farook, Esq. Bob Garcia Liliana Garcia Maytorena Xingshuo Liu, Esq. Andrew R. Morand, Esq. Julie D. Neal, Esq. Nithin B. Reddy, Esq. Elaine S. Rosen, Esq. ICLS is a non-profit 501(c)(3) corporation IRS Tax ID 95-6124556 Donations are welcome. Senior Line: 800.977.4257 Toll Free: 888.245.4257 InlandLegal.org Indio P.O. Box 10650 Indio, CA 92202-2563 Executive Office 1040 Iowa Ave., #106 Riverside, CA 92507-2106 Ontario 3500 Porsche Way, #200 Ontario, CA 91764-4941 Riverside 1040 Iowa Ave., #109 Riverside, CA 92507-2106 Victorville 15428 Civic Center Drive, Ste 175 Victorville, CA 92392 SENT VIA EMAIL ONLY TO publiccomments@sbcity.org February 20, 2024 Mayor Helen Tran and Council of the City of San Bernardino 290 North D Street, Third Floor San Bernardino, CA 92401 Re: Public Hearing Agenda Item No. 6: Development Code Amendment 23-03 (Density Bonus) Dear Mayor Tran and the Honorable Members of the San Bernardino City Council: We submit this public comment regarding Public Hearing Agenda Item No. 6: Development Code Amendment 23-03 (Density Bonus) (Amendment). We reviewed the agenda and understand that the City plans to introduce the Amendment for a first read and ultimately adopt the Amendment at its March 6, 2024 City Council meeting. However, as noted below, the Amendment as it is currently drafted, fails to comply with recent revisions to the Density Bonus Law (DBL) (Gov. Code §§65915- 65918). As such, the Amendment runs counter to the previously entered Stipulated Judgment in Gracia, et al. v. City of San Bernardino, et al. (CIVSB2301828) (filed February 10, 2023) (Gracia), where the City, among other things, agreed to amend its local density bonus ordinance to comply with the DBL. (See Stipulated Judgment, entered on September 1, 2023, ¶27, pp. 8-9, attached as Ex. 1 (Gracia Stipulated Judgment).) Further, as part of our ongoing discussions with the City regarding its compliance with the Gracia Stipulated Judgment, we reviewed the Amendment as passed by the Planning Commission on December 12, 2023. Thereafter, we e-mailed the City and its attorneys on December 18, 2023, and outlined several deficiencies with the Amendment. First, the Amendment does not have a savings clause, which we informed the City was necessary due to frequent amendments to the DBL. Second, the Amendment does not fully comport with recent amendments to the DBL, including Senate Bill (SB) 713 (Stats. 2023, Ch. 784). To aid the City with the requested changes to bring the Amendment in compliance with SB 713, we included an annotated version of the the Planning Commission’s December 12, 2023 Staff Report that denoted needed changes to the Amendment. The email cited here and the annotated report are attached to this public comment as Exhibits 2 and 3. 2 However, despite our request to the City and its counsel that it revise the Amendment to address our concerns, the Amendment included in the packet for the February 21 meeting is the same as the one passed by the Planning Commission on December 12, 2023. To avoid further violating the DBL and potentially violating the Gracia Stipulated Judgment, the City Council should not adopt the Amendment in its current form. Therefore, we are requesting the City Council adopt a resolution to include a savings clause in the proposed Amendment, to ensure that the Amendment complies with the DBL, as amended, and the Gracia Stipulated Judgment and direct the City and its counsel to revise the Amendment to bring it in compliance with the DBL as noted in our December 18 email to the City. Sincerely, Anthony Kim, Staff Attorney INLAND COUNTIES LEGAL SERVICES /s/ Ugochi Anaebere-Nicholson Ugochi Anaebere-Nicholson Public Interest Law Project EXHIBIT 1 EXHIBIT 1 EXHIBIT 1 EXHIBIT 1 EXHIBIT 1 EXHIBIT 1 EXHIBIT 1 EXHIBIT 1 EXHIBIT 1 EXHIBIT 1 EXHIBIT 1 EXHIBIT 1 EXHIBIT 1 EXHIBIT 1 EXHIBIT 1 EXHIBIT 1 EXHIBIT 1 EXHIBIT 1 EXHIBIT 1 EXHIBIT 1 Form Approved for Optional Use Judicial Council of California POS-050/EFS-050 [Rev. February 1, 2017] PROOF OF ELECTRONIC SERVICE (Proof of Service/Electronic Filing and Service) Page 1 of 1 Cal. Rules of Court, rule 2.251 www.courts.ca.gov I am at least 18 years old.1. 2. I electronically served the documents listed in 2 as follows: I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct. (SIGNATURE OF DECLARANT) 3. My residence or business address is (specify): My electronic service address is (specify): I electronically served the following documents (exact titles): The documents served are listed in an attachment. (Form POS-050(D)/EFS-050(D) may be used for this purpose.) The documents listed in item 2 were served electronically on the persons and in the manner described in an attachment. (Form POS-050(P)/EFS-050(P) may be used for this purpose.) Date: (TYPE OR PRINT NAME OF DECLARANT) SUPERIOR COURT OF CALIFORNIA, COUNTY OF BRANCH NAME: CITY AND ZIP CODE: STREET ADDRESS: MAILING ADDRESS: DEFENDANT/RESPONDENT: PLAINTIFF/PETITIONER: FOR COURT USE ONLY CASE NUMBER: DEPARTMENT: JUDICIAL OFFICER: PROOF OF ELECTRONIC SERVICE POS-050/EFS-050 ATTORNEY OR PARTY WITHOUT ATTORNEY: STATE:ZIP CODE:CITY: STREET ADDRESS: FIRM NAME: NAME: STATE BAR NO: TELEPHONE NO.:FAX NO. : E-MAIL ADDRESS: ATTORNEY FOR (name): b. c. b. a. Print this form Save this form Clear this form For your protection and privacy, please press the Clear This Form button after you have printed the form. 286032 ANTHONY KIM, ELENA CASTILLO, TESSIE SOLORZANO INLAND COUNTIES LEGAL SERVICES, INC. 3500 PORSCHE WAY, SUITE 200 ONTARIO CA 91764 (951) 320-7509 (951) 398-4945akim@icls.org PROMISE GRACIA, NADINE FIERRO, and SIBYLLE BARTZ CIVSB2301828 JUDGE KHYMBERLI S. APALOO S25 SAN BERNARDINO 247 WEST THIRD STREET SAME AS ABOVE SAN BERNARDINO 92415-0210 SAN BERNARDINO DISTRICT - CIVIL DIVISION PROMISE GRACIA, NADINE FIERRO, and SIBYLLE BARTZ CITY OF SAN BERNARDINO and SAN BERNARDINO CITY COUNCIL 3500 PORSCHE WAY, SUITE 200, ONTARIO, CA 91764 knavarro@icls.org STIPULATED FINAL JUDGMENT AND ORDER a. Name of person served: KAREN NAVARRO ALBERT MALDONADO On behalf of (name or names of parties represented, if person served is an attorney):CITY OF SAN BERNARDINO and SAN BERNARDINO CITY COUNCIL Electronic service address of person served : Albert.Maldonado@bbklaw.com On (date): 10/06/2023 (SEE ATTACHMENT "A" FOR ADDITIONAL COUNSEL) EXHIBIT 1 Form Approved for Optional Use Judicial Council of California POS-050/EFS-050 [Rev. February 1, 2017] PROOF OF ELECTRONIC SERVICE (Proof of Service/Electronic Filing and Service) Page 1 of 1 Cal. Rules of Court, rule 2.251 www.courts.ca.gov I am at least 18 years old.1. 2. I electronically served the documents listed in 2 as follows: I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct. (SIGNATURE OF DECLARANT) 3. My residence or business address is (specify): My electronic service address is (specify): I electronically served the following documents (exact titles): The documents served are listed in an attachment. (Form POS-050(D)/EFS-050(D) may be used for this purpose.) The documents listed in item 2 were served electronically on the persons and in the manner described in an attachment. (Form POS-050(P)/EFS-050(P) may be used for this purpose.) Date: (TYPE OR PRINT NAME OF DECLARANT) SUPERIOR COURT OF CALIFORNIA, COUNTY OF BRANCH NAME: CITY AND ZIP CODE: STREET ADDRESS: MAILING ADDRESS: DEFENDANT/RESPONDENT: PLAINTIFF/PETITIONER: FOR COURT USE ONLY CASE NUMBER: DEPARTMENT: JUDICIAL OFFICER: PROOF OF ELECTRONIC SERVICE POS-050/EFS-050 ATTORNEY OR PARTY WITHOUT ATTORNEY: STATE:ZIP CODE:CITY: STREET ADDRESS: FIRM NAME: NAME: STATE BAR NO: TELEPHONE NO.:FAX NO. : E-MAIL ADDRESS: ATTORNEY FOR (name): a. b. c. b. a. Print this form Save this form Clear this form For your protection and privacy, please press the Clear This Form button after you have printed the form. 286032 ANTHONY KIM, ELENA CASTILLO, TESSIE SOLORZANO INLAND COUNTIES LEGAL SERVICES, INC. 3500 PORSCHE WAY, SUITE 200 ONTARIO CA 91764 (951) 320-7509 (951) 398-4945akim@icls.org PROMISE GRACIA, NADINE FIERRO, and SIBYLLE BARTZ CIVSB2301828 JUDGE KHYMBERLI S. APALOO S25 SAN BERNARDINO 247 WEST THIRD STREET SAME AS ABOVE SAN BERNARDINO 92415-0210 SAN BERNARDINO DISTRICT - CIVIL DIVISION PROMISE GRACIA, NADINE FIERRO, and SIBYLLE BARTZ CITY OF SAN BERNARDINO and SAN BERNARDINO CITY COUNCIL 3500 PORSCHE WAY, SUITE 200, ONTARIO, CA 91764 knavarro@icls.org STIPULATED FINAL JUDGMENT AND ORDER DAMIAN NORTHCUTTName of person served: On behalf of (name or names of parties represented, if person served is an attorney):CITY OF SAN BERNARDINO and SAN BERNARDINO CITY COUNCIL Electronic service address of person served : Damian.Northcutt@bbklaw.com On (date): 10/06/2023 KAREN NAVARRO (SEE ATTACHMENT "A" FOR ADDITIONAL COUNSEL)EXHIBIT 1 EXHIBIT 2 From:Ugochi Anaebere-Nicholson To:Albert Maldonado; Damian Northcutt; Andrew.Fausto@bbklaw.com; Mary Lanier; Travis Martin Cc:Anthony Kim; Craig Castellanet; Vivian Anaya; Elena Castillo; Maria Delgado; June Wong Licinio; Nathalie Leudo Subject:Gracia v, City of San Bernardino - Stipulated Judgment Compliance Date:Monday, December 18, 2023 5:27:00 PM Attachments:image001.png Density Bonus Ordinance 24 01 17 (002)(ak).pdf Good evening, Thank you for our meeting last week where we reviewed and discussed our comments to the latest draft of the City’s Sixth Cycle (2021-2029) Housing Element. We appreciate the opportunity to discussed our continued concerns with the Draft and to learn about the work the City is doing to produce a substantially compliant Element under the law. Additionally, we were able to locate the Staff Report and proposed ordinance and attachments to amend the City’s Density Bonus Ordinance as required by the Gracia Stipulated Judgment (Stipulated Judgment). We are in the process of reviewing the proposed ordinance and will be in touch with further comments, but in reviewing what the Planning Commission passed, there appears not to be a savings clause contained in the proposed amendment, which would be needed as the Density Bonus Law (DBL) is frequently amended, to ensure that the ordinance ultimately adopted by the City Council complies with the Density Bonus Law and any changes to that law. Additionally, the proposed ordinance does not fully comport with recent amendments of the DBL. See SB 713 (Stats. 2023, Ch. 784), and please see highlighted portion of December 12 Planning Commission Staff Report, at p. 16. Further, in checking the schedule of meetings before the Planning Commission regarding amendments to the local density bonus and emergency shelter ordinances per the Stipulated Judgment, it appears that the Planning Commission has cancelled its meeting of January 9, 2024. Could you send over the dates for the Planning Commission and City Council meetings for January and February, respectively, or link us to where we may find them. Sincerely, Ugochi Ugochi Anaebere-Nicholson (she/her) Staff Attorney The Public Interest Law Project 449 15th Street, Suite 301 Oakland, CA 94612 Direct: 510-891-9794, x 626 Office: 510-891-9794 Fax: 510-891-9727 uanaebere-nicholson@pilpca.org (based in Riverside, CA) www.pilpca.org Confidentiality Notice: E-mails from this email address normally contain confidential and privileged material, and are for the sole use of the intended recipient. Use or distribution by an unintended recipient is prohibited, and may be a violation of law. If you believe that you received this e-mail in error, please do not read this e-mail or any attached items. Please delete the e-mail and all attachments, including any copies thereof, and inform the sender immediately that you have deleted the e-mail, all attachments, and any copies thereof. Thank you. EXHIBIT 3 Public Hearing: Agenda Item No. 6 City of San Bernardino Request for Planning Commission Action Date: December 12, 2023 To: Honorable Chairperson and Planning Commissioners From: Mary E. Lanier, Interim Agency Director of Community Development Subject: Development Code Amendment 23-03 (Density Bonus) Applicant City of San Bernardino – Community Development Department 201 North E Street, 3rd Floor San Bernardino, CA 92401 Request The request is a City-initiated amendment to Chapter 19.04 (Residential Zones) Section 19.04.030 (Density Bonus) of the City of San Bernardino Development Code (SBMC Title 19) to update the Density Bonus section in compliance with State law. Recommendation The Community Development Department recommends that the Planning Commission take the following action: 1)Recommend that the Planning Commission determine that Development Code Amendment 23-03 is exempt under the California Environmental Qual- ity Act (CEQA), pursuant to Section 15061(b)(3) (Common Sense Exemp- tion), as it can be seen with certainty that approval of the project will not have an effect on the environment; and 2)Adopt Resolution No. 2023-049 of the Planning Commission of the City of San Bernardino, California, forwarding a recommendation to the Mayor and City Council recommending approval of Development Code Amendment 23-03 amending Chapter 19.04 (Residential Zones) Section 19.04.030 (Density Bonus) of the City of San Bernardino Development Code (SBMC Title 19) in order to update the Density Bonus section in compliance with State law; and finding that Development Code Amendment 23-03 is exempt from review under the California Environmental Quality Act. EXHIBIT 3 Public Hearing Noticing December 02, 2023: Display advertisement was published in the San Bernardino Sun Newspaper, providing the nature of the request and the date, time, and place of the Planning Commission meeting of December 12, 2023, for Development Code Amendment 23- 03. Background The State and its cities have a housing shortage, especially affordable housing, which can be described as the “housing crisis.” The State adopted the Density Bonus Law (Gov. Code §§65915 - 65918) in 1979. The law permits a developer to increase density on a property above the maximum set under the City’s General Plan. In exchange for the increased density, a certain number of the new affordable dwelling units must be reserved at rents below market rate. Qualifying applicants can also receive reductions in required development standards. More signifi- cant benefits are available for projects with higher affordability percentages (with unlim- ited density available for certain transit-adjacent, 100-percent below-market rent pro- jects). Besides granting rights to housing and mixed-used developments to increase density, the law provides three provisions that require the City to grant qualifying projects: 1) incen- tives (or concessions) that provide cost reductions; 2) waivers of development standards that would physically preclude the development of a project at the density permitted and with the incentives granted, and; 3) reductions in parking requirements.1 Section 19.04.030(2)(D) of Chapter 19.04 – Residential Zones was enacted to comply with the State Density Bonus Law (DBL). Since the City’s Density Bonus section was adopted, the State has changed DBL numer- ous times. The pace of changes at the State level has increased in recent years. For example, in September 2020, the Governor signed a package of fifteen bills to increase affordable housing production and reduce housing costs. Several of these bills were aimed at increasing the incentives to build more affordable housing and more housing near public transit. Each year, bills amending the DBL have been passed. This year, on October 11, 2023, Governor Newsom signed 56 bills that incentivize and reduce barriers to housing and support the development of more affordable homes. Three of these bills amended the DBL. As part of Housing and Community Development’s (HCD’s) October 2, 2023, letter re- garding the City’s draft Housing Element, HCD requested a discussion of provisions of the City’s density bonus ordinance that constitute a constraint. In the Stipulated Final Judgement and Order submitted in Gracia et al. v. City of San Bernardino, it states that the City will update the density bonus ordinance as required by statute and stipulation agreement. In the meantime, the City has issued an interdepartmental memo directing 1 Density Bonus Law, What are Incentives/Concessions and Waivers, SCAG Development Streamlining Tools EXHIBIT 3 staff to process and approve any application for a density bonus consistent with Govern- ment Code 65915-65918. This Development Code Amendment 23-03 meets the require- ments of State law. Analysis The Density Bonus Law (found in California Government Code Sections 65915 – 65918) provides developers with powerful tools to encourage the development of affordable and senior housing, including up to a 50% increase in project densities for most projects, de- pending on the amount of affordable housing provided, and an 80% increase in density for projects which are completely affordable. The Density Bonus Law is about more than the density bonus itself, however. It is actually a larger package of incentives intended to help make the development of affordable and senior housing economically feasible. Other tools include reduced parking requirements, and incentives and concessions such as re- duced setback and minimum square footage requirements. Often these other tools are even more helpful to project economics than the density bonus itself, particularly the spe- cial parking benefits. Sometimes these incentives are sufficient to make the project pencil out, but for other projects financial assistance is necessary to make the project feasible.”2 At a minimum, the City must comply with State law regarding the DBL. Therefore, it is recommended that the City adopt the Government Code Section 65915 -65918 in its en- tirety. The City may amend the Section to allow for more significant incentives/conces- sions, parking reductions, and density, but the City cannot recommend anything less than State law. Proposed Amendment In order to ensure that the City’s Density Bonus section complies with State law, this amendment will update 19.04.030 to match State law completely. Attachment A; Exhibit A reflects the redline/strikeout of 19.040.030, showing the needed changes to comply with State law. Within the redline/strikeout, the blue/strikeout reflects the three bills recently signed by Governor Newsom on October 11, 2023 (AB 323, AB 1287, & SB 713), which go into effect on January 1, 2024. Rather than create another amendment in January, it is suggested that the City consider adopting these changes now so the Density Bonus section will be entirely current. Implementation The amendment to the Density Bonus section will take effect 30 days following the ap- proval of Development Code Amendment 23-03 by the Mayor and City Council. 2 Guide to the California Density Bonus Law, Jon Goetz and Tom Sakai, Revised January 2023. EXHIBIT 3 General Plan Goals and Policies The City of San Bernardino General Plan includes goals and policies to guide future hous- ing development within the City, including the following: Land Use Policy Goal 2.1.4: Provide assistance in the form of grants, loans, home-improvement efforts, coordinated code and law enforcement, public right-of-way maintenance and enhancement, and trash collection to help improve San Bernardino’s residential neighborhoods. (LU-1 and LU-3) Land Use Policy 2.4.1: Quality infill development shall be accorded a high priority in the commitment of City resources and available funding. Land Use Policy 2.4.2: Continue to provide special incentives and improvement programs to revitalize deteriorated housing stock, residential neighborhoods, major business corridors, and employment centers. (LU-3 and LU-4) Housing Goal 3.3: Affordable Housing Assistance. Assist in the provision of housing affordable to lower- and moderate-income households. Housing Goal 3.4: Fair Housing Opportunity. Promote fair and equal housing opportunities for all persons in San Bernardino. Housing Goal 3.5: Governmental Constraints. Reduce adverse effects of governmental actions on the production, preservation, and conservation of housing, particularly for lower-moderate-income households. The adoption and implementation of Development Code Amendment 23-03 is consistent with the City’s General Plan by allowing for the development of affordable housing in a manner consistent with State law. 2020-2025 Key Strategic Targets and Goals Development Code Amendment 23-03 aligns with Key Target Goal No. 3: Improved Qual- ity of Life and 4(b): Economic Growth and Development – Update the General Plan and Development Code. Specifically, the amendment will update the Development Code for compliance with State law. The amendment to the Development Code will ensure con- sistency with State law. California Environmental Quality Act The Planning Division conducted an environmental evaluation concerning the proposed Development Code Amendment 23-03. It concluded that the amendment is exempt from CEQA under Section 15061(b)(3) (Common Sense Exemption) of the CEQA Guidelines since the proposed Development Code Amendment will not create significant effects on the environment as it establishes standards for densiy bonuses consistent with State law EXHIBIT 3 Conclusion Development Code Amendment 23-03 establishes compliance with State law for Density Bonus by updating Section 19.04.030 of the City’s Development Code. Therefore, staff recommends that the Planning Commission adopt Resolution No. 2023-049, forwarding a recommendation of approval to the Mayor and City Council for approval of Development Code Amendment 23-03 amending Chapter 19.04 (Residential Zones) Section 19.04.030 (Density Bonus) of the City of San Bernardino Development Code (SBMC Title 19) in order to update the Density Bonus section in compliance with State law; and finding that the Development Code Amendment 23-03 is exempt from review under the California Environmental Quality Act. Attachment Attachment A Resolution No. 2023-049 Exhibit A Development Code Section 19.04.030(2)(D) Redline/Blue/Strikeout EXHIBIT 3 ATTACHMENT A Resolution No. 2023-049 EXHIBIT 3 RESOLUTION NO. 2023-049 - PC 1 RESOLUTION NO. 2023-049 - PC A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF SAN BERNARDINO, CALIFORNIA, FORWARDING A RECOMMENDATION TO THE MAYOR AND CITY COUNCIL RECOMMENDING APPROVAL OF DEVELOPMENT CODE AMENDMENT 23-03 AMENDING CHAPTER 19.04 (RESIDENTIAL ZONES) SECTION 19.04.030 (DENSITY BONUS) OF THE CITY OF SAN BERNARDINO DEVELOPMENT CODE (SBMC TITLE 19) TO UPDATE THE DENSITY BONUS SECTION IN COMPLIANCE WITH STATE LAW; AND FINDING THAT DEVELOPMENT CODE AMENDMENT 23-03 IS EXEMPT UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT. WHEREAS, the State of California has adopted Government Code Sections 65915 – 65918 (State Density Bonus Law), which requires cities to provide density bonuses, concessions/incentives, waivers, and parking reductions for eligible housing development; and WHEREAS, Government Code Section 65918 provides that the State Density Bonus Law applies to charter cities, including San Bernardino; and WHEREAS, in recent years, in response to the State’s need for housing, the State’s Density Bonus Law has been amended to increase affordable housing production and reduce housing costs, requiring the City to update the Density Bonus Section of Chapter 19.04 (Residential Zones); and WHEREAS, on October 2, 2023, the Community Development Department - Planning Commission received a letter regarding the City’s draft Housing Element noting that the provisions of the City’s density bonus ordinance constitute a constraint to affordable housing development; and WHEREAS, in a Stipulated Final Judgement and Order submitted in Gracia et al. v. City of San Bernardino, it was stated that the City would update the density bonus ordinance as required by statute and the stipulation agreement; and WHEREAS, Development Code Amendment 23-03 is a City-initiated amendment to Chapter 19.04 (Residential Zones) Section 19.04.030 (Density Bonus) of the City of San Bernardino Development Code (SBMC Title 19) to update the Density Bonus section in compliance with state law; and WHEREAS, the Planning Division of the Community Development Department of the City of San Bernardino has prepared Development Code Amendment 23-03 in compliance with the California Government Code, consistency with the City of San Bernardino General Plan, and compliance with the City of San Bernardino Development Code; and EXHIBIT 3 RESOLUTION NO. 2023-049 - PC 2 WHEREAS, pursuant to requirements of the California Environmental Quality Act (“CEQA”), the Planning Division of the Community Development Department evaluated Development Code Amendment 23-03 and determined that it is exempt from CEQA under 15061(b)(3) of the CEQA Guidelines; and WHEREAS, on December 2, 2023, pursuant to the requirements of Section 19.52.020 (Hearings and Appeals – Application Processing) of the City of San Bernardino Development Code, the City gave public notice by advertising in the San Bernardino Sun, a newspaper of general circulation within the City of San Bernardino of the holding of a public hearing at which Development Code Amendment 23-03 would be considered; and WHEREAS, on December 12, 2023, pursuant to the requirements of Section 19.52.040 (Hearings and Appeals – Hearing Procedures) of the City of San Bernardino Development Code, the Planning Commission held the duly noticed public hearing at which interested persons had an opportunity to testify in support of, or opposition to Development Code Amendment 23-03 and at which meeting, the Planning Commission considered Development Code Amendment 23-03; and WHEREAS, pursuant to the requirements of Section 19.42.030 (Development Code Amendments – Commission Action on Amendments) of the City of San Bernardino Development Code, the Planning Commission has the authority to recommend to the Mayor and City Council the approval of the Development Code Amendment 23-03. NOW THEREFORE, the Planning Commission of the City of San Bernardino does hereby resolve, determine, find, and order as follows: SECTION 1. ENVIRONMENTAL DETERMINATION: As the decision-making body for the project, the Planning Commission has reviewed and considered the information contained in the administrative record for Development Code Amendment 23-03. Based upon the facts and information contained in the administrative record, including all written and oral evidence presented to the Planning Commission, the Planning Commission hereby recommends to the Mayor and City Council as follows: (1) The administrative record has been completed in compliance with the California Environmental Quality Act (“CEQA”), the State CEQA Guidelines, and the City’s Local CEQA Guidelines and (2) The proposed project is exempt from the requirements of the California Environmental Quality Act (“CEQA”) under CEQA Guidelines Section 15061(b)(3), the “common sense” rule that states that CEQA applies only to projects that have the potential for causing a significant effect on the environment. This amendment establishes standards for the rental of existing residential properties in areas zoned for residential use and, therefore, does not have the potential to cause a significant effect on the environment; and (3) The determination of CEQA exemption reflects the independent judgment of the Planning Commission. EXHIBIT 3 RESOLUTION NO. 2023-049 - PC 3 SECTION 2. FINDINGS FOR DEVELOPMENT CODE AMENDMENT 23-03: Section 19.42.050 of the City of San Bernardino Development Code requires that Development Code Amendments meet certain findings prior to approval by the Mayor and City Council. Accordingly, the following findings are provided in support of the recommendation by the Planning Commission for the approval of Development Code Amendment 23-03: Finding No. 1: The proposed amendment is consistent with the General Plan. Finding of Fact: Development Code Amendment 23-03 is consistent with the General Plan, as follows: Land Use Policy Goal 2.1.4: Provide assistance in the form of grants, loans, home-improvement efforts, coordinated code and law enforcement, public right-of-way maintenance and enhancement, and trash collection to help improve San Bernardino’s residential neighborhoods. (LU-1 and LU-3) Land Use Policy 2.4.1: Quality infill development shall be accorded a high priority in the commitment of City resources and available funding. Land Use Policy 2.4.2: Continue to provide special incentives and improvement programs to revitalize deteriorated housing stock, residential neighborhoods, major business corridors, and employment centers. (LU-3 and LU-4) Housing Goal 3.3: Affordable Housing Assistance. Assist in the provision of housing affordable to lower- and moderate-income households. Housing Goal 3.4: Fair Housing Opportunity. Promote fair and equal housing opportunities for all persons in San Bernardino. Housing Goal 3.5: Governmental Constraints. Reduce adverse effects of governmental actions on the production, preservation, and conservation of housing, particularly for lower-moderate-income households. The adoption and implementation of Development Code Amendment 23-03 is consistent with the City’s General Plan by allowing for the development of affordable housing in a manner consistent with State law. Finding No. 2: The proposed amendment would not be detrimental to the public interest, health, safety, convenience, or welfare of the City. Finding of Fact: The adoption and implementation of Development Code Amendment 23-03 are in the interest or furtherance of the public health, safety, convenience, and general welfare through the establishment of regulations consistent with State law that will further the development of affordable housing for low and moderate-income households, seniors, and students. EXHIBIT 3 RESOLUTION NO. 2023-049 - PC 4 SECTION 3. RECOMMENDATION FOR DEVELOPMENT CODE AMENDMENT 23-03: Pursuant to Section 19.42.030 (Development Code Amendments – Commission Action on Amendments), the Planning Commission forwards the amendments to the Development Code attached hereto as EXHIBIT “A” for approval by the Mayor and City Council. SECTION 4. PLANNING COMMISSION ACTION: The Planning Commission hereby takes the following action: 1. Adoption of Planning Commission Resolution No. 2023-049, forwarding a recommendation that the Mayor and City Council: a. Find the Exemption, pursuant to Section 15061(b)(3) of the CEQA Guidelines for Development Code Amendment 23-03, and directing the Director of Community Development to prepare and file with the Clerk of the County of San Bernardino a Notice of Exemption as provided under Public Resources Code Section 2 l 152(b) and CEQA Guidelines Section 15062; and b. Approve Development Code Amendment 23-03 based on the Findings of Fact. SECTION 5. SEVERABILITY: If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end, the provisions of this Resolution are declared to be severable. SECTION 6. CUSTODIAN OF RECORDS: The location and custodian of the documents and any other material, which constitute the record of proceedings upon which the Planning Commission based its decision, is as follows: Genoveva Rocha, City Clerk, 201 North E Street (Building A), 909-384-5002. PASSED, APPROVED AND ADOPTED this 12th day of December 2023. Monique Guerrero, Chairperson San Bernardino Planning Commission ATTEST: Mary E. Lanier, Planning Commission Secretary City of San Bernardino, California EXHIBIT 3 RESOLUTION NO. 2023-049 - PC 5 CERTIFICATION: I, Jennifer Meamber, Recording Secretary of the Planning Commission of the City of San Bernardino, California, do hereby certify that the foregoing Resolution No. 2023-049 - PC, was duly adopted by the Planning Commission of the City of San Bernardino, California, at a regular meeting thereof held on the 12th day of December 2023, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: Jennifer Meamber, Recording Secretary City of San Bernardino, California EXHIBIT 3 EXHIBIT A Development Code Section 19.04.030 (Density Bonus) 19.04.030(2) shall be modified to read as follows: D. DENSITY BONUS 1. Purpose The purpose of this Chapter is to: a. Establish procedures for implementing State Density Bonus requirements, as set forth in California Government Code Sections 65915, and b. Facilitate the development of affordable housing consistent with the goals, objectives, and policies of the Housing Element of the City's General Plan. c. This Chapter establishes incentives available to developers to produce housing affordable to very-low, low and moderate-income households, transitional foster youth, disabled veterans, homeless persons, lower-income students, and senior citizens, consistent with State Density Bonus law. 2. Government Code 65915 – 65918 a. (1) When an applicant seeks a density bonus for a housing development within, or for the donation of land for housing within, the City shall comply with this section. The City shall adopt an ordinance that specifies how compliance with this section will be implemented. Except as otherwise provided in subdivision(s), failure to adopt an ordinance shall not relieve the City from complying with this section. (2) The City shall not condition the submission, review, or approval of an application pursuant to this chapter on the preparation of an additional report or study that is not otherwise required by state law, including this section. This subdivision does not prohibit the City from requiring an applicant to provide reasonable documentation to establish eligibility for a requested density bonus, incentives or concessions, as described in subdivision (b)(d), waivers or reductions of development standards, as described in subdivision (e), and parking ratios, as described in subdivision (p). (3) In order to provide for the expeditious processing of a density bonus application, the City shall do all of the following: (A) Adopt procedures and timelines for processing a density bonus application. (B) Provide a list of all documents and information required to be submitted with the density bonus application in order for the density EXHIBIT 3 EXHIBIT A bonus application to be deemed complete. This list shall be consistent with this chapter. (C) Notify the applicant for a density bonus whether the application is complete in a manner consistent with the timelines specified in Government Code Section 65943. (D) (i) If the City notifies the applicant that the application is deemed complete pursuant to subparagraph (C), provide the applicant with a determination as to the following matters: (I) The amount of density bonus calculated pursuant to subdivision (f), for which the applicant is eligible. (II) If the applicant requests a parking ratio pursuant to subdivision (p), the parking ratio for which the applicant is eligible. (III) If the applicant requests incentives or concessions pursuant to subdivision (d) or waivers or reductions of development standards pursuant to subdivision (e), whether the applicant has provided adequate information for the City to decide as to those incentives, concessions, or waivers, or reductions of development standards. (ii) Any determination required by this subparagraph shall be based on the development project at the time the application is deemed complete. The City shall adjust the amount of density bonus and parking ratios awarded pursuant to this section based on any changes to the project during the course of development. b. (1) The City shall grant one density bonus, the amount of which shall be as specified in subdivision (f), and, if requested by the applicant and consistent with the applicable requirements of this section, incentives or concessions, as described in subdivision (d), waivers or reductions of development standards, as described in subdivision (e), and parking ratios, as described in subdivision (p), if an applicant for a housing development seeks and agrees to construct a housing development, excluding any units permitted by the density bonus awarded pursuant to this section, that will contain at least any one of the following: (A) Ten percent of the total units of a housing development, including a shared housing building development, for rental or sale to lower income households, as defined in Section 50079.5 of the Health and Safety Code. (B) Five percent of the total units of a housing development, including a shared housing building development, for rental or sale to very low- EXHIBIT 3 EXHIBIT A income households, as defined in Section 50105 of the Health and Safety Code. (C) A senior citizen housing development, as defined in Sections 51.3 and 51.12 of the Civil Code, or a mobilehome park that limits residency based on age requirements for housing for older persons pursuant to Section 798.76 or 799.5 of the Civil Code. For pur poses of this subparagraph, “development” includes a shared housing building development. (D) Ten percent of the total dwelling units of a housing development are sold to persons and families of moderate income, as defined in Section 50093 of the Health and Safety Code, provided that all units in the development are offered to the public for purchase. (E) Ten percent of the total units of a housing development for transitional foster youth, as defined in Section 66025.9 of the Education Code, disabled veterans, as defined in Section 18541, or homeless persons, as defined in the federal McKinney-Vento Homeless Assistance Act (42 U.S.C. Sec. 11301 et seq.). The units described in this subparagraph are shall be subject to a recorded affordability restriction of 55 years and shall be provided at the same affordability level as very low-income units. (F) (i) Twenty percent of the total units for lower income students in a student housing development that meets the following requirements: (I) All units in the student housing development shallwill 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. In order to be eligible under this subclause, the developer shall, as a condition of receiving a certificate of occupancy, provide evidence to the City that the developer has entered into an operating agreement or master lease with one or more institutions of higher education for the institution or institutions to occupy all units of the student housing development with students from that institution or institutions. An operating agreement or master lease entered into pursuant to this subclause is not violated or breached if, in any subsequent year, there are insufficientnot sufficient students enrolled in an institution of higher education to fill all units in the student housing development. EXHIBIT 3 EXHIBIT A (II) The applicable 20-percent units shallwill be used for lower income students. (III) The rent provided in the applicable units of the development for lower income students shall be calculated at 30 percent of 65 percent of the area median income for a single-room occupancy unit type. (IV) The development shallwill provide priority for the applicable affordable units for lower income students experiencing homelessness. A homeless service provider, as defined in paragraph (3) of subdivision (e) of Section 103577 of the Health and Safety Code, or institution of higher education that has knowledge of a person’s homeless status may verify a person’s status as homeless for purposes of this subclause. (ii) For purposes of calculating a density bonus granted pursuant to this subparagraph, the term “unit” as used in this section means one rental bed and its pro rata share of associated common area facilities. The units described in this subparagraph areshall be subject to a recorded affordability restriction of 55 years. (G) One hundred percent of all units in the development, including total units and density bonus units, but exclusive of a manager’s unit or units, are for lower income households, as defined by Section 50079.5 of the Health and Safety Code, except that up to 20 percent of the units in the development, including total units and density bonus units, may be for moderate-income households, as defined in Section 50053 of the Health and Safety Code. For purposes of this subparagraph, “development” includes a shared housing building development. (2) For purposes of calculating the amount of the density bonus pursuant to subdivision (f), an applicant who requests a density bonus pursuant to this subdivision shall elect whether the bonus shall be awarded on the basis of subparagraph (A), (B), (C), (D), (E), (F), or (G) of paragraph (1). c. (1) (A) An applicant shall agree to, and the City shall ensure, the continued affordability of all very low and low-income rental units that qualified the applicant for the award of the density bonus for 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. (B) EXHIBIT 3 EXHIBIT A (i)Except as otherwise provided in clause (ii), rents for the lower income density bonus units shall be set at an affordable rent, as defined in Section 50053 of the Health and Safety Code. (ii)For housing developments meeting the criteria of subparagraph (G) of paragraph (1) of subdivision (b), rents for all units in the development, including both base density and density bonus units, shall be as follows: (I)The rent for at least 20 percent of the units in the development shall be set at an affordable rent, as defined in Section 50053 of the Health and Safety Code. (II)The rent for the remaining units in the development shall be set at an amount consistent with the maximum rent levels for lower income households, as those rents and incomes are determined by the California Tax Credit Allocation Committee. (2) (A)An applicant shall agree to ensure, and the City shall ensure, that a for-sale unit that qualified the applicant for the award of the density bonus meets either of the following conditions: (i)The unit is initially occupied by a person or family of very low, low, or moderate income, as required, and it is offered at an affordable housing cost, as that cost is defined in Section 50052.5 of the Health and Safety Code and is subject to an equity sharing agreement. (ii)The unit is purchased by a qualified nonprofit housing corporation pursuant to a recorded contract that satisfies all of the requirements specified in paragraph (10) of subdivision (a) of Section 402.1 of the Revenue and Taxation Code and that includes all of the following: (I)A repurchase option that requires a subsequent purchaser of the property that desires to resell or convey the property to offer the qualified nonprofit corporation the right to repurchase the property prior to selling or conveying that property to any other purchaser. (II)An equity sharing agreement. (III)Affordability restrictions on the sale and conveyance of the property that ensure that the property will be preserved for lower income housing for at least 45 years for owner- occupied housing units and will be sold or resold only to persons or families of very low, low, or moderate income, as defined in Section 50052.5 of the Health and Safety Code. EXHIBIT 3 Completely changed in SB 713: (I) The nonprofit corporation has a determination letter from the Internal Revenue Service affirming its tax-exempt status pursuant to Section 501(c)(3) of the Internal Revenue Code and is not a private foundation as that term is defined in Section 509 of the Internal Revenue Code. (II) The nonprofit corporation is based in California. (III) All of the board members of the nonprofit corporation have their primary residence in California. (IV) The primary activity of the nonprofit corporation is the development and preservation of affordable home ownership housing in California that incorporates within their contracts for initial purchase a repurchase option that requires a subsequent purchaser of the property that desires to resell or convey the property to offer the qualified nonprofit corporation the right to repurchase the property prior to selling or conveying that property to any other purchaser pursuant to an equity sharing agreement or affordability restrictions on the sale and conveyance of the property that ensure that the property will be preserved for lower income housing for at least 45 years for owner-occupied housing units and will be sold or resold only to persons or families of very low, low, or moderate income, as defined in Section 50052.5 of the Health and Safety Code. Missing "sold to", in final SB 713. Missing from AB 323: "If the unit is not purchased by an income-qualified person or family within 180 days after the issuance of the certificate of occupancy, the..." EXHIBIT A (B)For purposes of this paragraph, a “qualified nonprofit housing corporation” is a nonprofit housing corporation organized pursuant to Section 501(c)(3) of the Internal Revenue Code that has received a welfare exemption under Section 214.15 of the Revenue and Taxation Code for properties intended to be sold to low-income families who participate in a special no-interest loan program. (C)The local government shall enforce an equity sharing agreement required pursuant to clause (i) or (ii) of subparagraph (A) unless it is in conflict with the requirements of another public funding source or law or may defer to the recapture provisions of the public funding source. The following apply to the equity sharing agreement: (i)Upon resale, the seller of the unit shall retain the value of any improvements, the downpayment, and the seller’s proportionate share of appreciation. (ii)Except as provided in clause (v), the local government shall recapture any initial subsidy, as defined in clause (iii), and its proportionate share of appreciation, as defined in clause (iv), which amount shall be used within five years for any of the purposes described in subdivision (e) of Section 33334.2 of the Health and Safety Code that promote homeownership. (iii)For purposes of this subdivision, the local government’s initial subsidy shall be equal to the fair market value of the home at the time of initial sale minus the initial sale price to the moderate- income household, plus the amount of any downpayment assistance or mortgage assistance. If upon resale the market value is lower than the initial market value, then the value at the time of the resale shall be used as the initial market value. (iv)For purposes of this subdivision, the local government’s proportionate share of appreciation shall be equal to the ratio of the local government’s initial subsidy to the fair market value of the home at the time of initial sale. (v)If the unit is purchased or developed by a qualified nonprofit housing corporation pursuant to clause (ii) of subparagraph (A) the local government may enter into a contract with the qualified nonprofit housing corporation under which the qualified nonprofit housing corporation would recapture any initial subsidy and its proportionate share of appreciation if the qualified nonprofit housing corporation is required to use 100 percent of the proceeds to promote homeownership for lower income households as defined by Section 50079.5 of the Health and Safety Code Section 50079.5 within the jurisdiction of the local government. EXHIBIT 3 EXHIBIT A (3) (A) An applicant shall be ineligible for a density bonus or any other incentives or concessions under this section if the housing development is proposed on any property that includes a parcel or parcels on which rental dwelling units are or, if the dwelling units have been vacated or demolished in the five-year period preceding the application, have been subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of lower or very low income; subject to any other form of rent or price control through a public entity’s valid exercise of its police power; or occupied by lower or very low income households, unless the proposed housing development replaces those units, and either of the following applies: (i) The proposed housing development, inclusive of the units replaced pursuant to this paragraph, contains affordable units at the percentages set forth in subdivision (b). (ii) Each unit in the development, exclusive of a manager’s unit or units, is affordable to, and occupied by, either a lower or very low income household. (B) For the purposes of this paragraph, “replace” shall mean either of the following: (i) If any dwelling units described in subparagraph (A) are occupied on the date of application, the proposed housing development shall provide at least the same number of units of equivalent size to be made available at affordable rent or affordable housing cost to, and occupied by, persons and families in the same or lower income category as those households in occupancy. If the income category of the household in occupancy is not known, it shall be rebuttably presumed that lower income renter households occupied these units in the same proportion of lower income renter households to all renter households within the jurisdiction, as determined by the most recently available data from the United States Department of Housing and Urban Development’s Comprehensive Housing Affordability Strategy database. For unoccupied dwelling units described in subparagraph (A) in a development with occupied units, the proposed housing development shall provide units of equivalent size to be made available at affordable rent or affordable housing cost to, and occupied by, persons and families in the same or lower income category as the last household in occupancy. If the income category of the last household in occupancy is not known, it shall be rebuttably presumed that lower income renter households occupied these units in the same proportion of lower income renter households to all renter households within the EXHIBIT 3 EXHIBIT A jurisdiction, as determined by the most recently available data from the United States Department of Housing and Urban Development’s Comprehensive Housing Affordability Strategy database. All replacement calculations resulting in fractional units shall be rounded up to the next whole number. If the replacement units will be rental dwelling units, these units shall be subject to a recorded affordability restriction for at least 55 years. If the proposed development is for-sale units, the units replaced shall be subject to paragraph (2). (ii) If all dwelling units described in subparagraph (A) have been vacated or demolished within the five-year period preceding the application, the proposed housing development shall provide at least the same number of units of equivalent size as existed at the highpoint of those units in the five-year period preceding the application to be made available at affordable rent or affordable housing cost to, and occupied by, persons and families in the same or lower income category as those persons and families in occupancy at that time, if known. If the incomes of the persons and families in occupancy at the highpoint is not known, it shall be rebuttably presumed that low-income and very low income renter households occupied these units in the same proportion of low-income and very low income renter households to all renter households within the jurisdiction, as determined by the most recently available data from the United States Department of Housing and Urban Development’s Comprehensive Housing Affordability Strategy database. All replacement calculations resulting in fractional units shall be rounded up to the next whole number. If the replacement units will be rental dwelling units, these units shall be subject to a recorded affordability restriction for at least 55 years. If the proposed development is for-sale units, the units replaced shall be subject to paragraph (2). (C) Notwithstanding subparagraph (B), for any dwelling unit described in subparagraph (A) that is or was, within the five- year period preceding the application, subject to a form of rent or price control through a local government’s valid exercise of its police power and that is or was occupied by persons or families above lower income, the City may do either of the following: (i) Require that the replacement units be made available at affordable rent or affordable housing cost to, and occupied by, low-income persons or families. If the replacement units will be rental dwelling units, these units shall be subject to a recorded affordability restriction for at least 55 years. If the proposed development is for-sale units, the units replaced shall be subject to paragraph (2). EXHIBIT 3 EXHIBIT A (ii) Require that the units be replaced in compliance with the jurisdiction’s rent or price control ordinance, provided that each unit described in subparagraph (A) is replaced. Unless otherwise required by the jurisdiction’s rent or price control ordinance, these units shall not be subject to a recorded affordability restriction. (D) For purposes of this paragraph, “equivalent size” means that the replacement units contain at least the same total number of bedrooms as the units being replaced. (E) Subparagraph (A) does not apply to an applicant seeking a density bonus for a proposed housing development if the applicant’s application was submitted to, or processed by, the City before January 1, 2015. d. (1) An applicant for a density bonus pursuant to subdivision (b) may submit to the City a proposal for the specific incentives or concessions that the applicant requests pursuant to this section and may request a meeting with the City. The City shall grant the concession or incentive requested by the applicant unless the City makes a written finding, based upon substantial evidence, of any of the following: (A) The concession or incentive does not result in identifiable and actual cost reductions, consistent with subdivision (k), to provide for affordable housing costs, as defined in Section 50052.5 of the Health and Safety Code, or for rents for the targeted units to be set as specified in subdivision (c). (B) The concession or incentive would have a specific, adverse impact, as defined in paragraph (2) of subdivision (d) of Section 65589.5, upon public health and safety 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 low- income and moderate-income households. (C) The concession or incentive would be contrary to state or federal law. (2) The applicant shall receive the following number of incentives or concessions: (A) One incentive or concession for projects that include at least 10 percent of the total units for lower income households, at least 5 percent for very low-income households, or at least 10 percent for persons and families of moderate income in a development in which the units are for sale. (B) Two incentives or concessions for projects that include at least 17 percent of the total units for lower income households, at least 10 EXHIBIT 3 EXHIBIT A percent for very low-income households, or at least 20 percent for persons and families of moderate income in a development in which the units are for sale. (C) Three incentives or concessions for projects that include at least 24 percent of the total units for lower income households, at least 15 percent for very low-income households, or at least 30 percent for persons and families of moderate income in a development in which the units are for sale. (D) Five Four incentives or concessions for a project meeting the criteria of subparagraph (G) of paragraph (1) of subdivision (b). If the project is located within one-half mile of a major transit stop or is located in a very low vehicle travel area in a designated county, the applicant shall also receive a height increase of up to three additional stories, or 33 feet. (E) One incentive or concession for projects that include at least 20 percent of the total units for lower income students in a student housing development. (F) Four incentives or concessions for projects that include at least 16 percent of the units for very low income households or at least 45 percent for persons and families of moderate income in a developments in which the units are for sale. (3) The applicant may initiate judicial proceedings if the City refuses to grant a requested density bonus, incentive, or concession. If a court finds that the refusal to grant a requested density bonus, incentive, or concession is in violation of this section, the court shall award the plaintiff reasonable attorney’s fees and costs of suit. This subdivision shall not be interpreted to require a local government to grant an incentive or concession that has a specific, adverse impact, as defined in paragraph (2) of subdivision (d) of Section 65589.5, upon health or safety, and for which there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact. This subdivision shall not be interpreted to require a local government to grant an incentive or concession that would have an adverse impact on any real property that is listed in the California Register of Historical Resources. The City shall establish procedures for carrying out this section that shall include legislative body approval of the means of compliance with this section. (4) The City shall bear the burden of proof for the denial of a requested concession or incentive. e. (1) In no case may the City apply any development standard that will have the effect of physically precluding the construction of a development meeting the criteria of subdivision (b) at the densities or with the concessions or incentives permitted by this section. Subject to paragraph (3), an applicant EXHIBIT 3 EXHIBIT A may submit to the City a proposal for the waiver or reduction of development standards that will have the effect of physically precluding the construction of a development meeting the criteria of subdivision (b) at the densities or with the concessions or incentives permitted under this section and may request a meeting with the City. If a court finds that the refusal to grant a waiver or reduction of development standards is in violation of this section, the court shall award the plaintiff reasonable attorney’s fees and costs of suit. This subdivision shall not be interpreted to require a local government to waive or reduce development standards if the waiver or reduction would have a specific, adverse impact, as defined in paragraph (2) of subdivision (d) of Section 65589.5, upon health or safety, and for which there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact. This subdivision shall not be interpreted to require a local government to waive or reduce development standards that would have an adverse impact on any real property that is listed in the California Register of Historical Resources, or to grant any waiver or reduction that would be contrary to state or federal law. (2) A proposal for the waiver or reduction of development standards pursuant to this subdivision shall neither reduce nor increase the number of incentives or concessions to which the applicant is entitled pursuant to subdivision (d). (3) A housing development that receives a waiver from any maximum controls on density pursuant to clause (ii) of subparagraph (D) of paragraph (3) of subdivision (f) shall only be eligible for a waiver or reduction of development standards as provided in subparagraph (D) of paragraph (2) of subdivision (d) and clause (ii) of subparagraph (D) of paragraph (3) of subdivision (f), unless the City agrees to additional waivers or reductions of development standards. f. For the purposes of this chapter, “density bonus” means a density increase over the otherwise maximum allowable gross residential density as of the date of application by the applicant to the City, 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 increases to which the applicant is entitled shall vary according to the amount by which the percentage of affordable housing units exceeds the percentage established in subdivision (b). (1) For housing developments meeting the criteria of subparagraph (A) of paragraph (1) of subdivision (b), the density bonus shall be calculated as follows: Percentage Low-Income Units Percentage Density Bonus 10 20 11 21.5 12 23 EXHIBIT 3 EXHIBIT A Percentage Low-Income Units Percentage Density Bonus 13 24.5 14 26 15 27.5 16 29 17 30.5 18 32 19 33.5 20 35 21 38.75 22 42.5 23 46.25 24 50 (2) For housing developments meeting the criteria of subparagraph (B) of paragraph (1) of subdivision (b), the density bonus shall be calculated as follows: Percentage Very Low-Income Units Percentage Density Bonus 5 20 6 22.5 7 25 8 27.5 9 30 10 32.5 11 35 12 38.75 13 42.5 14 46.25 15 50 (3) EXHIBIT 3 EXHIBIT A (A) For housing developments meeting the criteria of subparagraph (C) of paragraph (1) of subdivision (b), the density bonus shall be 20 percent of the number of senior housing units. (B) For housing developments meeting the criteria of subparagraph (E) of paragraph (1) of subdivision (b), the density bonus shall be 20 percent of the number of the type of units giving rise to a density bonus under that subparagraph. (C) For housing developments meeting the criteria of subparagraph (F) of paragraph (1) of subdivision (b), the density bonus shall be 35 percent of the student housing units. (D) For housing developments meeting the criteria of subparagraph (G) of paragraph (1) of subdivision (b), the following shall apply: (i) Except as otherwise provided in clauses (ii) and (iii), the density bonus shall be 80 percent of the number of units for lower income households. (ii) If the housing development is located within one-half mile of a major transit stop, the City shall not impose any maximum controls on density. (iii) If the housing development is located in a very low vehicle travel area within a designated county, the City shall not impose any maximum controls on density. (4) For housing developments meeting the criteria of subparagraph (D) of paragraph (1) of subdivision (b), the density bonus shall be calculated as follows: Percentage Moderate-Income Units Percentage Density Bonus 10 5 11 6 12 7 13 8 14 9 15 10 16 11 17 12 18 13 19 14 EXHIBIT 3 EXHIBIT A Percentage Moderate-Income Units Percentage Density Bonus 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 35 30 36 31 37 32 38 33 39 34 40 35 41 38.75 42 42.5 43 46.25 44 50 (5) All density calculations resulting in fractional units shall be rounded up to the next whole number. The granting of a density bonus shall not require, or be interpreted, in and of itself, to require a general plan amendment, local coastal plan amendment, zoning change, or other discretionary approval. EXHIBIT 3 EXHIBIT A g. (1) When an applicant for a tentative subdivision map, parcel map, or other residential development approval donates land to the C ity in accordance with this subdivision, the applicant shall be entitled to a 15-percent increase above the otherwise maximum allowable residential density for the entire development, as follows: Percentage Very Low Income Percentage Density Bonus 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 (2) This increase shall be in addition to any increase in density mandated by subdivision (b), up to a maximum combined mandated density increase of 35 percent if an applicant seeks an increase pursuant to both this subdivision and subdivision (b). All density calculations resulting in fractional units EXHIBIT 3 EXHIBIT A shall be rounded up to the next whole number. Nothing in this subdivision shall be construed to enlarge or diminish the authority of the City to require a developer to donate land as a condition of development. An applicant shall be eligible for the increased density bonus described in this subdivision if all of the following conditions are met: (A) The applicant donates and transfers the land no later than the date of approval of the final subdivision map, parcel map, or residential development application. (B) The developable acreage and zoning classification of the land being transferred are sufficient to permit construction of units affordable to very low-income households in an amount not less than 10 percent of the number of residential units of the proposed development. (C) The transferred land is at least one acre in size or of sufficient size to permit development of at least 40 units, has the appropriate general plan designation, is appropriately zoned with appropriate development standards for development at the density described in paragraph (3) of subdivision (c) of Section 65583.2, and is or will be served by adequate public facilities and infrastructure. (D) The transferred land shall have all of the permits and approvals, other than building permits, necessary for the development of the very low income housing units on the transferred land, not later than the date of approval of the final subdivision map, parcel map, or residential development application, except that the local government may subject the proposed development to subsequent design review to the extent authorized by subdivision (i) of Section 65583.2 if the design is not reviewed by the local government before the time of transfer. (E) The transferred land and the affordable units shall be subject to a deed restriction ensuring continued affordability of the units consistent with paragraphs (1) and (2) of subdivision (c), which shall be recorded on the property at the time of the transfer. (F) The land is transferred to the local agency or to a housing developer approved by the local agency. The local agency may require the applicant to identify and transfer the land to the developer. (G) The transferred land shall be within the boundary of the proposed development or, if the local agency agrees, within one-quarter mile of the boundary of the proposed development. (H) A proposed source of funding for the very low-income units shall be identified not later than the date of approval of the final subdivision map, parcel map, or residential development application. h. EXHIBIT 3 EXHIBIT A (1) When an applicant proposes to construct a housing development that conforms to the requirements of subdivision (b) and includes a childcare facility that will be located on the premises of, as part of, or adjacent to, the project, the City shall grant either of the following: (A) An additional density bonus that is an amount of square feet of residential space that is equal to or greater than the amount of square feet in the childcare facility. (B) An additional concession or incentive that contributes significantly to the economic feasibility of the construction of the childcare facility. (2) The City shall require, as a condition of approving the housing development, that the following occur: (A) The childcare facility shall remain in operation for a period of time that is as long as or longer than the period of time during which the density bonus units are required to remain affordable pursuant to subdivision (c). (B) Of the children who attend the childcare facility, the children of very low-income households, lower income households, or families of moderate income shall equal a percentage that is equal to or greater than the percentage of dwelling units that are required for very low- income households, lower income households, or families of moderate income pursuant to subdivision (b). (3) Notwithstanding any requirement of this subdivision, the City shall not be required to provide a density bonus or concession for a childcare facility if it finds, based upon substantial evidence, that the community has adequate childcare facilities. (4) “Childcare facility,” as used in this section, means a child daycare facility other than a family daycare home, including, but not limited to, infant centers, preschools, extended daycare facilities, and school age childcare centers. i. “Housing development,” as used in this section, means a development project for five or more residential units, including mixed-use developments. For the purposes of this section, “housing development” also includes a subdivision or common interest development, as defined in Section 4100 of the Civil Code, approved by the City and consists of residential units or unimproved residential lots and either a project to substantially rehabilitate and convert an existing commercial building to residential use or the substantial rehabilitation of an existing multifamily dwelling, as defined in subdivision (d) of Section 65863.4, where the result of the rehabilitation would be a net increase in available residential units. For the purpose of calculating a density bonus, the residential units shall be on contiguous sites that are the subject of one development application, but do not have to be based upon individual subdivision maps or parcels. The density bonus shall be permitted in geographic areas of the housing EXHIBIT 3 EXHIBIT A development other than the areas where the units for the lower income households are located. j. (1) The granting of a concession or incentive shall not require or be interpreted, in and of itself, to require a general plan amendment, local coastal plan amendment, zoning change, study, or other discretionary approval. For purposes of this subdivision, “study” does not include reasonable documentation to establish eligibility for the concession or incentive or to demonstrate that the incentive or concession meets the definition set forth in subdivision (k). This provision is declaratory of existing law. (2) Except as provided in subdivisions (d) and (e), the granting of a density bonus shall not require or be interpreted to require the waiver of a local ordinance or provisions of a local ordinance unrelated to development standards. k. For the purposes of this chapter, concession or incentive means any of the following: (1) A reduction in site development standards or a modification of zoning code requirements or architectural design requirements that exceed the minimum building standards approved by the California Building Standards Commission as provided in Part 2.5 (commencing with Section 18901) of Division 13 of the Health and Safety Code, including, but not limited to, a reduction in setback and square footage requirements and in the ratio of vehicular parking spaces that would otherwise be required that results in identifiable and actual cost reductions, to provide for affordable housing costs, as defined in Section 50052.5 of the Health and Safety Code, or for rents for the targeted units to be set as specified in subdivision (c). (2) Approval of mixed-use zoning in conjunction with the housing project if commercial, office, industrial, or other land uses will reduce the cost of the housing development and if the commercial, office, industrial, or other land uses are compatible with the housing project and the existing or planned development in the area where the proposed housing project will be located. (3) Other regulatory incentives or concessions proposed by the developer or the City that result in identifiable and actual cost reductions to provide for affordable housing costs, as defined in Section 50052.5 of the Health and Safety Code, or for rents for the targeted units to be set as specified in subdivision (c). l. Subdivision (k) does not limit or require the provision of direct financial incentives for the housing development, including the provision of publicly owned land, by the City, or the waiver of fees or dedication requirements. m. This section does not supersede or in any way alter or lessen the effect or application of the California Coastal Act of 1976 (Division 20 (commencing with Section 30000) of the Public Resources Code). Any density bonus, concessions, EXHIBIT 3 EXHIBIT A incentives, waivers or reductions of development standards, and parking ratios to which the applicant is entitled under this section shall be permitted in a manner that is consistent with this section and Division 20 (commencing with Section 30000) of the Public Resources Code. n. If permitted by local ordinance, nothing in this section shall be construed to prohibit the City from granting a density bonus greater than what is described in this section for a development that meets the requirements of this section or from granting a proportionately lower density bonus than what is required by this section for developments that do not meet the requirements of this section. o. For purposes of this section, the following definitions shall apply: (1) “Designated county” includes the Counties of Alameda, Contra Costa, Los Angeles, Marin, Napa, Orange, Riverside, Sacramento, San Bernardino, San Diego, San Francisco, San Mateo, Santa Barbara, Santa Clara, Solano, Sonoma, and Ventura, and the City and County of San Francsico. (2) “Development standard” includes a site or construction condition, including, but not limited to, a height limitation, a setback requirement, a floor area ratio, an onsite open-space requirement, a minimum lot area per unit requirement, or a parking ratio that applies to a residential development pursuant to any ordinance, general plan element, specific plan, charter, or other local condition, law, policy, resolution, or regulation. (3) “Located within one-half mile of a major transit stop” means that any point on a proposed development, for which an applicant seeks a density bonus, other incentives or concessions, waivers or reductions of development standards, or a vehicular parking ratio pursuant to this section, is within one-half mile of any point on the property on which a major transit stop is located, including any parking lot owned by the transit authority or other local agency operating the major transit stop. (4) “Lower income student” means a student who has a household income and asset level that does not exceed the level for Cal Grant A or Cal Grant B award recipients as set forth in paragraph (1) of subdivision (k) of Section 69432.7 of the Education Code. The eligibility of a student to occupy a unit for lower income students under this section shall be verified by an affidavit, award letter, or letter of eligibility provided by the institution of higher education in which the student is enrolled or by the California Student Aid Commission that the student receives or is eligible for financial aid, including an institutional grant or fee waiver from the college or university, the California Student Aid Commission, or the federal government. (5) “Major transit stop” has the same meaning as defined in subdivision (b) of Section 21155 of the Public Resources Code. (6) “Maximum allowable residential density” or “base density” means the greatestmaximum number of units allowed under the zoning ordinance, specific plan, or land use element of the general plan, or, if a range of density EXHIBIT 3 EXHIBIT A is permitted, means the greatestmaximum number of units allowed by the specific zoning range, specific plan, or land use element of the general plan applicable to the project. If the density allowed under the zoning ordinance is inconsistent with the density allowed under the land use element of the general plan or specific plan, the greater shall prevail. Density shall be determined using dwelling units per acre. However, if the applicable zoning ordinance, specific plan, or land use element of the general plan does not provide a dwelling-units-per-acre standard for density, then the local agency shall calculate the number of units by: (A) Estimating the realistic development capacity of the site based on the objective development standards applicable to the project, including, but not limited to, floor area ratio, site coverage, maximum building height and number of stories, building setbacks and stepbacks, public and private open-space requirements, minimum percentage or square footage of any nonresidential component, and parking requirements, unless not required for the base project. Parking requirements shall include considerations regarding number of spaces, location, design, type, and circulation. A developer may provide a base density study and the local agency shall accept it, provided that it includes all applicable objective development standards. (B) Maintaining the same average unit size and other project details relevant to the base density study, excepting those that may be modified by waiver or concession to accommodate the bonus units, in the proposed project as in the study. (7) (A) (i) “Shared housing building” means a residential or mixed-use structure, with five or more shared housing units and one or more common kitchens and dining areas designed for permanent residence of more than 30 days by its tenants. The kitchens and dining areas within the shared housing building shall be able to adequately accommodate all residents. If a local ordinance further restricts the attributes of a shared housing building beyond the requirements established in this section, the local definition shall apply to the extent that it does not conflict with the requirements of this section. (ii) “shared housing building” may include other dwelling units that are not shared housing units, provided that those dwelling units do not occupy more than 25 percent of the floor area of the shared housing building. A shared housing building may include 100 percent shared housing units. (B) “Shared housing unit” means one or more habitable rooms, not within another dwelling unit, that includes a bathroom, sink, refrigerator, and EXHIBIT 3 EXHIBIT A microwave, is used for permanent residence, that meets the “minimum room area” specified in Section R304 of the California Residential Code (Part 2.5 of Title 24 of the California Code of Regulations) and complies with the definition of “guestroom” in Section R202 of the California Residential Code. If a local ordinance further restricts the attributes of a shared housing building beyond the requirements established in this section, the local definition shall apply to the extent that it does not conflict with the requirements of this section. (8) (A) “Total units” or “total dwelling units” means a calculation of the number of units that: (i) Excludes a unit added by a density bonus awarded pursuant to this section or any local law granting a greater density bonus. (ii) Includes a unit designated to satisfy an inclusionary zoning requirement of the City. (B) For purposes of calculating a density bonus granted pursuant to this section for a shared housing building, “unit” means one shared housing unit and its pro rata share of associated common area facilities. (9) “Very low vehicle travel area” means an urbanized area, as designated by the United States Census Bureau, where the existing residential development generates vehicle miles traveled per capita that is below 85 percent of either regional vehicle miles traveled per capita or city vehicle miles traveled per capita. For purposes of this paragraph, “area” may include a travel analysis zone, hexagon, or grid. For the purposes of determining “regional vehicle miles traveled per capita” pursuant to this paragraph, a “region” is the entirety of incorporated and unincorporated areas governed by a multicounty or single-county metropolitan planning organization, or the entirety of the incorporated and unincorporated areas of an individual county that is not part of a metropolitan planning organization. p. (1) Except as provided in paragraphs (2), (3), and (4), upon the request of the developer, the City shall not require a vehicular parking ratio, inclusive of parking for persons with a disability and guests, of a development meeting the criteria of subdivisions (b) and (c), that exceeds the following ratios: (A) Zero to one bedroom: one onsite parking space. (B) Two to three bedrooms: one and one-half onsite parking spaces. (C) Four and more bedrooms: two and one-half parking spaces. (2) (A) Notwithstanding paragraph (1), if a development includes at least 20 percent low-income units for housing developments meeting the EXHIBIT 3 EXHIBIT A criteria of subparagraph (A) of paragraph (1) of subdivision (b) or at least 11 percent very low income units for housing developments meeting the criteria of subparagraph (B) of paragraph (1) of subdivision (b), is located within one-half mile of a major transit stop, and there is unobstructed access to the major transit stop from the development, then, upon the request of the developer, the C ity shall not impose a vehicular parking ratio, inclusive of parking for persons with a disability and guests, that exceeds 0.5 spaces per unit. Notwithstanding paragraph (1), if a development includes at least 40 percent moderate-income units for housing developments meeting the criteria of subparagraph (D) of paragraph (1) of subdivision (b), is located within one-half mile of a major transit stop, as defined in subdivision (b) of Section 21155 of the Public Resources Code, and the residents of the development have unobstructed access to the major transit stop from the development then, upon the request of the developer, the City shall not impose a vehicular parking ratio, inclusive of parking for persons with a disability and guests, that exceeds 0.5 spaces per bedroom. (B) For purposes of this subdivision, “unobstructed access to the major transit stop” means a resident is able to access the major transit stop without encountering natural or constructed impediments. For purposes of this subparagraph, “natural or constructed impediments” includes, but is not limited to, freeways, rivers, mountains, and bodies of water, but does not include residential structures, shopping centers, parking lots, or rails used for transit. (3) Notwithstanding paragraph (1), if a development meets the criteria of subparagraph (G) of paragraph (1) of subdivision (b), then, upon the request of the developer, the City shall not impose vehicular parking standards if the development meets any of the following criteria: (A) The development is located within one-half mile of a major transit stop and there is unobstructed access to the major transit stop from the development. (B) The development is a for-rent housing development for individuals who are 55 years of age or older that complies with Sections 51.2 and 51.3 of the Civil Code and the development has either paratransit service or unobstructed access, within one-half mile, to fixed bus route service that operates at least eight times per day. (C) The development is either a special needs housing development, as defined in Section 51312 of the Health and Safety Code, or a supportive housing development, as defined in Section 50675.14 of the Health and Safety Code. A development that is a special needs housing development shall have either paratransit service or unobstructed access, within one-half mile, to fixed bus route service that operates at least eight times per day. EXHIBIT 3 EXHIBIT A (4) If the total number of parking spaces required for a development is other than a whole number, the number shall be rounded up to the next whole number. For purposes of this subdivision, a development may provide onsite parking through tandem parking or uncovered parking, but not through onstreet parking. (5) This subdivision shall apply to a development that meets the requirements of subdivisions (b) and (c), but only at the request of the applicant. An applicant may request parking incentives or concessions beyond those provided in this subdivision pursuant to subdivision (d). (6) This subdivision does not preclude the City from reducing or eliminating a parking requirement for development projects of any type in any location. (7) Notwithstanding paragraphs (2) and (3), if the City or an independent consultant has conducted an areawide or jurisdiction wide parking study in the last seven years, then the C ity may impose a higher vehicular parking ratio not to exceed the ratio described in paragraph (1), based upon substantial evidence found in the parking study, that includes, but is not limited to, an analysis of parking availability, differing levels of transit access, walkability access to transit services, the potential for shared parking, the effect of parking requirements on the cost of market- rate and subsidized developments, and the lower rates of car ownership for low- income and very low income individuals, including seniors and special needs individuals. The City shall pay the costs of any new study. The City shall make findings, based on a parking study completed in conformity with this paragraph, supporting the need for the higher parking ratio. (8) A request pursuant to this subdivision shall neither reduce nor increase the number of incentives or concessions to which the applicant is entitled pursuant to subdivision (d). q. Each component of any density calculation, including base density and bonus density, resulting in fractional units shall be separately rounded up to the next whole number. The Legislature finds and declares that this provision is declaratory of existing law. r. This chapter shall be interpreted liberally in favor of producing the maximum number of total housing units. s. Notwithstanding any other law, if the City has adopted an ordinance or a housing program, or both an ordinance and a housing program, that incentivizes the development of affordable housing that allows for density bonuses that EXHIBIT 3 EXHIBIT A exceed the density bonuses required by the version of this section effective through December 31, 2020, the City is not required to amend or otherwise update its ordinance or corresponding affordable housing incentive program to comply with the amendments made to this section by the act adding this subdivision, and is exempt from complying with the incentive and concession calculation amendments made to this section by the act adding this subdivision as set forth in subdivision (d), particularly subparagraphs (B) and (C) of paragraph (2) of that subdivision, and the amendments made to the density tables under subdivision (f). t. When an applicant proposes to construct a housing development that conforms to the requirements of subparagraph (A) or (B) of paragraph (1) of subdivision (b) that is a shared housing building, the City shall not require any minimum unit size requirements or minimum bedroom requirements that are in conflict with paragraph (7) of subdivision (o). u. (1) The Legislature finds and declares that the intent behind the Density Bonus Law is to allow public entities to reduce or even eliminate subsidies for a particular project by allowing a developer to include more total units in a project than would otherwise be allowed by the local zoning ordinance in exchange for affordable units. It further reaffirms that the intent is to cover at least some of the financing gap of affordable housing with regulatory incentives, rather than additional public subsidy. (2) It is therefore the intent of the Legislature to make modifications to the Density Bonus Law by the act adding this subdivision to further incentivize the construction of very low, low-, and moderate-income housing units. It is further the intent of the Legislature in making these modifications to the Density Bonus Law to ensure that any additional benefits conferred upon a developer are balanced with the receipt of a public benefit in the form of adequate levels of affordable housing. The Legislature further intends that these modifications will ensure that the Density Bonus Law creates incentives for the construction of more housing across all areas of the state. (v) (1) Provided that the resulting housing development would not restrict more than 50 percent of the total units to moderate-income, lower income, or very low income households, a City shall grant an additional density bonus calculated pursuant to paragraph (2) when an applicant proposes to construct a housing development that conforms to the requirements of paragraph (1) of subdivision (b), agrees to include additional rental or for - sale units affordable to very low income households or moderate income households, and meets any of the following requirements: EXHIBIT 3 EXHIBIT A (A) The housing development conforms to the requirements of subparagraph (A) of paragraph (1) of subdivision (b) and provides 24 percent of the total units to lower income households. (B) The housing development conforms to the requirements of subparagraph (B) of paragraph (1) of subdivision (b) and provides 15 percent of the total units to very low-income households. (C) The housing development conforms to the requirements of subparagraph (D) of paragraph (1) of subdivision (b) and provides 44 percent of the total units to moderate-income households. (2) A City shall grant an additional density bonus for a housing development that meets the requirements of paragraph (1), calculated as follows: Percentage Very Low Income Units Percentage Density Bonus 5 20 6 23.75 7 27.5 8 31.25 9 35 10 38.75 Percentage Moderate-Income Units Percentage Density Bonus 5 20 6 22.5 7 25 8 27.5 9 30 10 32.5 11 35 12 38.75 13 42.5 14 46.25 15 50 EXHIBIT 3 EXHIBIT A (3) The increase required by paragraphs (1) and (2) shall be in addition to any increase in density granted by subdivision (b). (4) The additional density bonus required under this subdivision shall be calculated using the number of units excluding any density bonus awarded by this section. This section contains two density bonus provisions. The first entitlement is based upon the provision of affordable housing pursuant to State Government Code Section 65915. The second provision is intended to provide density bonus incentives for the incorporation of on-site amenities. 1. Affordable Housing State Government Code Section 65915 provides for the granting of a density bonus or other incentives of equivalent financial value when a developer of housing agrees to construct at least 1 of the following: a. Twenty percent of the total units of a housing development for persons and families or lower income, as defined in Section 50079.5 of the Health and Safety Code. b. Ten percent of the total units of a housing development for very low income households, as defined in Section 50105 of the Health and Safety Code. c. Fifty percent of the total dwelling units of a housing development for qualifying residents, as defined in Section 51.2 of the Civil Code. A request for a density bonus and regulatory concessions and/or incentives shall require Conditional Use Permit review and be subject to the following provisions: a. For the purpose of this Section, "density bonus" shall mean a density increase of 25% over the otherwise maximum allowable residential density under this Development Code and the General Plan. When determining the number of housing units which are to be affordable, the density bonus shall not be included. b. The purposes for implementing this section are as follows: 1) The City shall within 90 days of receipt of a written proposal, notify the developer in writing of the procedures governing these provisions. 2) The Council may approve the density bonus and regulatory concessions and/or incentives only if all of the following findings are made: a) The developer has proven that the density bonus and adjustment of standards is necessary to make the project economically feasible; b) That additional adjustment of standards is not required in order for the rents for the targeted units to be set, pursuant to Government Code Section 65915(c); and EXHIBIT 3 EXHIBIT A c) The proposed project is compatible with the purpose and intent of the General Plan and this Development Code. c. The density bonus shall only apply to housing developments consisting of five or more dwelling units. d. The density bonus provision shall not apply to senior citizen and senior congregate care housing projects that utilize the senior citizen housing density provisions of this Development Code. e. Prior to the issuance of a building permit for any dwelling unit in a development for which "density bonus units" have been awarded or incentives have been received, the developer shall submit documentation which identifies the restricted units and shall enter into a written agreement with the City to guarantee for 30 years their continued use and availability to low and moderate-income households. The agreement shall extend more than 30 years if required by the Construction or Mortgage Financing Assistance Program, Mortgage Insurance Program, or Rental Subsidy Program. The terms and conditions of the agreement shall run with the land which is to be developed, shall be binding upon the successor in interest of the developer, and shall be recorded in the Office of the San Bernardino County Recorder. The agreement shall include the following provisions: 1) The developer shall give the City the continuing right-of-first- refusal to purchase or lease any or all of the designated units at the fair market value; 2) The deeds to the designated units shall contain a covenant stating that the developer or his/her successor in interest shall not sell, rent, lease, sublet, assign, or otherwise transfer any interests for same without the written approval of the City confirming that the sales price of the units is consistent with the limits established for low- and moderate-income households, which shall be related to the Consumer Price Index; 3) The City shall have the authority to enter into other agreements with the developer or purchasers of the dwelling units, as may be necessary to assure that the required dwelling units are continuously occupied by eligible households. f. "Density bonus units" shall be generally dispersed throughout a development project and shall not differ in appearance from other units in the development. g. The City shall provide, in addition to a density bonus, at least 1 of the following regulatory concessions and/or incentives to ensure that the multi- family residential project will be developed at a reduced cost: 1) A reduction or modification of Development Code requirements which exceed the minimum building standards approved by the State Building Standards Commission as provided in Part 2.5 (commencing with Section 18901) of Division 123 of the Health and Safety Code, including, but not EXHIBIT 3 EXHIBIT A limited to, a reduction in setback and square footage requirements and in the ratio of vehicular parking spaces that would otherwise be required. 2) Approval of mixed use development in conjunction with the multi-family residential project if commercial, office, industrial, or other land uses will reduce the cost of the development and if the project will be compatible internally as well as with the existing or planned development in the area where the proposed housing project will be located. 3) Other regulatory incentives or concessions proposed by the developer or the City which result in identifiable cost reductions. 2. Amenities Bonus Provision This provision allows an increase in the maximum permitted density of 15% in only the RU, RM, RMH, RH, CO-1 & 2, CG-2, and CR-2 land use zoning districts. Increases of up to 15% may be granted based upon the finding(s) that any proper combination of the following amenities are provided in excess of those required by the applicable zone: a. Architectural features that promote upscale multi-family development; b. Additional on-site or off-site mature landscaping which will benefit the project; c. Additional useable open space; d. Attached garages; e. Additional recreational facilities (i.e., clubhouse, play area, pool/Jacuzzi, tennis court, etc.); and f. Day care facilities. This amenity bonus provision shall not be used as an addition to the affordable housing density bonus provision. EXHIBIT 3