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C1TO OF SAN BERNARDII~
Flrank I.. Schuma
From: P1 anning Director
Dept: Planning
- REQUE.'$T FOR COUNCIL A~ON
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Subject:
Density Bonuses
Date:
February 4, 1985
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Synopsis of Previous Council action:
January 7, 1985 -- Mayor and Council directed the Planning Department staff
to research and come back with alternative financing
incentives and any other incentives which may apply in
lieu of density bonuses. '
Recommended motion:
That the Mayor and Council instruct the City Attorney's ,office to prepare
the final resolution pertaining to provisions for density bonuses.
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Signature
Frank A. Schuma
Contact person:
Frank A. Schuma
Phone:
383-5057
Supporting data attached:
Yes, Staff Report
Ward:
City-wide
FUNDING REQUIREMENTS:
Amount:
Source:
Finance:
Council Notes:
75-0262
Agenda Item No.
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CITe) OF SAN BERNARDlr:O -
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REQUEST FOR COUNCIL Acx.,ON
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STAFF REPORT
SUBJECT: Density Bonuses
February 4, 1985
The attached resolution establishes the mechanism for a density bonus within the
City of San Bernardino, 'As an adjunct to these provisions, staff proposes that
the Mayor and Council adopt the following:
1) Instruct the City Attorney's office to prepare draft legislation which
eStablishes a mechanism through which charter cities may be excluded
from density bonus provisions of the Government Code.
2) The City Attorney's office and Planning Department shall investigate withholding
of the final reading of ordinances adopting changes of zone for a period not to
exceed one year from date of approval by the Mayor and Councilor pending
approval of a Conditional Use Permit/Review of Plans and approval of building
,permits.
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75~0264
REDE~LOPMEN~GENCY
OF THE CITY OF SAN BERNARDINO, CALIFORNIA
GLENDA t"\
EXECUTIVE ti?ftr"'C'TOR
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DICK GOBURSCH
f)EP1.ITr nIRErTOR
Janua ry 7, 1985
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Hr. Brad Griggs
Pacific Scene, Inc.
937 Via Lata, Suite 100
Colton, Calif. 92324
Re: Oenisty Bonus Rental Rates
Dear Hr. Griggs:
This letter Is In respOnse to your inquiry regarding the above referenced
subject.
Attached please find a HUD News Release setting forth the Revised Section 8
Income Limits and 1984 Median Incomes. The median Income for the Riverside!
San Bernardino PHSA ($26,000) and ,the Sectiqn,8 Income limits are utilized
by the City and County of San Bernardino and the Housing Authority of the
County' of San Bernardino in establishing rental rates for low income house-
holds in mortgage revenue bond programs and the City's Density Bonus Process.
Generally, the maximum rents charged'may not exceed 30% of a housholds
Income with the income being no greater than 80% of the median income. For
instance, 80% of the median income for a family of four (4) is $20,800. No
more than 30% of the $20,800, or $6,240 may be used for housing costs (does
.!!2!. i nc 1 ude ut ill ties) . \
According to the Housing Authority of San Bernardino County, the maximum
Fai r Market Rents (FMR) for the City of San Bernardino are as follows:
1 Bdrm
$397.00
2Bdrm
$4&1.00
3 Bdrm
$&10,00
The maximum allowable rents under the County's Mortgage Revenue Bond program
are as fol lows:
1 Bdrm
$41&.00
2 Bdrm
$520.00
3 Bdrm
$585.00
According to the Housing Authroity, in general, the current average rent
range in the City of San Bernardino is set forth below:
1 Bdrm
$310-330
2 Bdrm
$410.00
3 Bdrm
$500.00
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CITY HALL . 300 NORTIi "0" STREET . RM. 320 . SAN BERNARDINO, CALIFORNIA .92418 . PHONE: (714) 383-5081
TELEX: 6711291 RDEVUW
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Brad Griggs
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In view of the fact Pacific Scene is not participating in the City or County
Bond program coupled with the fact th~staff does ~ot envision any financial
participation in your development by the Agency, it is my opinion that
monitoring of the rent structure associated with density bonuses for lowl
moderate income households would most likely fall under the Jurisdiction of
the City of San Bernardino Planning Department. ' .
Please call if I can be of further assistance.
S~'Ci
Kenneth J. Henderson, ager
Community Development Division
cc: Frank Schuma, Planning Director
City of San Bernardino
Glenda Saul, Executive Di rector
Redevelopment Agency
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OffICe of Public "".lIrs
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Los Ange1es CA 9000,7
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N~ws Rele~se
Los Angeles HUD Office
Revised Section 8 Income Limits. 1984 Median Incomes
HUD has revised income limits for the Section 8 Program effective M~ II,
1984. Income limits for Lower Income and Very Low Income families are listed
on the attachment for all Metropolitan Statistical Areas (MSA), Primary
Metropolitan Statistical Areas (PMSA). and non-Metropolitan counties in
Southern California.
These revised income limits are based on estimates of median incomes for
calendar year 1984. .Section 8 Lower Income limits are set at 80 percent of the
area median. For areas of unusually high income, a maximum income limit for a
four person family has been set at the national median family income of $27.000.
In the Los Angeles HUD Office Jurisdiction this income limit cap is applicable
for the Anaheim-Santa Ana PMSA (Orange County). Section 8 Very Low Income
lillits, however, are set at 50 percent of the area median for all areas.
If you have any questions .concerning these income limits, please contact
EconOlic and Market Analysis at (213) 688-5931.
Attachllent: .
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'I<>s Angeles Area OIloee, 2500 WoI.hore Bouteva'd,los A_les. CA 90057 (?lJ'68R59731
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, ctlTY OF SAN BEICNARDINOo- MEMORANDUO
To HON. MAYOR AND COMMON COUNCIL
From
RALPH H. PRINCE
City Attorney
February 4, 1985
Su~~ Density Bonus Legislation
Date
Approved
Date
700. 1, 700.30
On Friday, February 1, 1985, this Office was contacted by
Mr. John Longville of the Office of Assemblyman Eaves. Mr.
Longville advised that pursuant to a request received from
certain officials of the City, the Assemblyman was
introducing a bill on that date which would amend the
density bonus provisions of the Government Code (Government
Code Section 65915 through 65918) in such a manner as to
preclude the application of its provisions in the City of
San Bernardino. Mr. Longville advised that February 1st was
the final date for the introduction of such a bill and that
he was requesting that we provide language to his office for
inclusion in any svch bill. Mr. Longville advised that
because of the time pressures involved, the Assemblyman had
introduced a "spot bill" which could subsequently be amended
to reflect the actual language of the proposed bill. He
stated that any such language that the City desires to have
included in the bill should be provided to his office by the
close of business on February 4, 1985. Attached please find
a proposed amendment to Government Code Section 65918. As
presently written, the section provides: "The provisions of
this chapter shall apply to charter cities." The proposed
language would be in addition to the already existing
language of the section.
~e proposed amendment allows a mechanism whereby a city,
such as San Bernardino, where market forces maintain the
cost of housing at rates which are at or below those to be
provided pursuant to Government Code Section 65915, would be
~cused from the density bonus requirements of that section.
~f the proposed amendment is in fact adopted as a law, the
City would have the annual expense of conducting a survey,
to determine the current average rent range.
RALPH H. PRINCE
Ci ty Attorney
RHP:dp
CI'IY 011 'IHI.~
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PROPOSED AMENDMENT TO GOVERNMENT CODE SECTION 65918
For purposes of granting a density bonus for a housing
development project within the City of San Bernardino.
The provisions of this Chapter shall not apply when the
"current average rent range" is at or below maximum "fair
market rents" for low and moderate income households as
defined under United States Department of Housing and Urban
Development Section 8 program standards. The City of San
Bernardino shall conduct an annual survey to establish the
current average rent range within the city. A copy of the
current survey shall be maintained in the office of the
planning department of the city and shall at all times be
open to public review during the regular business hours of
the department.
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RESOLUTION NO.
35-66
RESOLUTION OF THE CIT~ OF SAN BERNARDINO ADOPTING PROCEDURES
FOR THE GRANT OF DENSITY BONUS OR EQUIVALENT FINANCIAL VALUE.
WHEREAS, pursuant to Subsection (B) of C'..overnment Code
Section 65915 of the State of California, the City of San
Bernardino is required to establish procedures for the grant of
density bonuses, the City, therefore, undertakes to meet this
mandate by the establishment of the procedures contained herein.
NOW, THEREFORE BE IT RESOLVED BY THE NAYOR AND CONI.l0N
COUNCIL OF THE CITY OF' SAN BERNARDINO AS FOLLOWS:
SECTION 1. The application for and processing of
applications for the grant of a density bonus for any housing
development shall be conducted as follows:
1. Applications for either a density bonus or equivalent
financial value for a housing development project shall be
submitted to the Planning Commission. Application forms for a
density bonus or equivalent financial value shall be provided by
the office of the Planning Department. Said forms shall be
completed by the developer requesting the density bonus and
submitted to the Planning Commission along with a pro forma of
the project, specificat.ions for any "equivalent financial value"
alternatives to the grant of the density bonus which are proposed
by the developer and a cost schedule of the project.
2. Upon receipt of said application and the accompanying
documentation, the Planning Commission shall fix a t.ime and place,
for public hearing of not less than thirty days from date of the
receipt of said application.
3. The PI ann ing Department sha 11 act as the 1 ead agency in
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neo.otiations with the de'leloper to devise any "equivalent
financial value" alternat.ives to the grant of a density bonns.
Any proposed equivalent financial value shall be developed in
conjunction with the offic.es of the City Administrator, City
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I' Attorney, Redevelopment Agen<:y, Park, Recreation and Community
Services Department, and the Engineering Department, or any or
all of the above as is appropriate.
4. The Planning Commission, after having held the public
hearing, shall approve or modify the application in the following
manner:
A. Approve a ~ensity bonus of not more than twenty-
five percent over the maximum allm-fable density under the General
Plan.
1. When a twenty-five percent density bonus is
provided, the developer shall execute a covenant to run ~lith the
land that a minimum of twenty-five percent of the total units to
be constructed shall be available for low and moderate income
families for a period of thirty years, or that ten percent of the
total units will be availahle for lower income households for a
period of thirty years.
B. Provide at least two alternative bonus incentives
of "equivalent financial value" from which the developer may
select one alternative for application to the project, subject to
the recommendation of the Planning Commission and approval of the
Mayor and Common Council. These alternatives may include but are
not limited to the following:
1. Construction of puhlic improvements
appurtenant to the proposed development which may include but not
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he limited to streets, sidewalks,
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lInes,
~!ater
street
se",le.rs,
lights.
/. Utilize federal and state money for land urite
down. .
3. Waive any or all local ordinances regulating
land development including fee structures.
4. Waiver of the provisions of the Quimby Act
(Parks and Recreation dedications).
5. Issuance of mortgage revenue ~onds, industrial
development bonds, or other forms of free financing, including,
if appropriate and necessary. a waiver of the City fees thereon.
6. Granting of a change of zone, if such grant
increases the financial viability of a project.
a. Pursuant to the grant of any application
for a zone change, parcel map or conditional use permit, the
party receiving such zone change, parcel map or conditional use
permit shall be required to execute an agreement which includes
the provision that; "Grant of this application is deemed by the
parties hereto to constitute a grant by the City of a financial
incentive for the development of any housing development project
which may hereafter be developed on the affected parcel or
parcels. This grant which is of "e.quivalent financial value" to
any density bonus which may be required for such'project pursuant
to any present or future interpretation of applicable state law."
This agreement shall be made a covenant running with the land for
a period of thirty years.
C. A comhinat ion of al ternati ves listed under "B"
above with a proportionate reduction in the twenty-five percent
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density bonus to arrive at an overall "equivalent financial
value" equal to t..,enty-five percent of the maximum allowable
density under the General Plan.
5. The recommendation of the Planning Commission to the
Mayor and Common Council shall be made in writing no later than
ninety days after receipt of application.
6. A fee shall be paid in the amount of $350.00 plus $25.00
per acre for the processing of the density bonus or equivalent
financial value request, and shall be paid at the time of
submission of the application.
I HEREBY CERTIFY that the foregoing ordinance was duly
adopted by the Mayor and Common Council of the City of San
Bernardino at a
T"Aonlrtr
meeting thereof, held
on the
day of
'F,::IohrnRry
, 1935, by the following
A+h
vote, to wit:
AYES:
Council Members r~~t~nAnp Reillv. Hernandez.
~~..,..'k-~. Qn;~l. Fr;:t7.;pT"1 ~trick'p-r
NAYS:
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ABSENT:
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The foregoing ordinance is hereby ~~ day
of Febr.~\a;;:y..__.
I Approved as to form:
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I City Attorney
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