HomeMy WebLinkAboutSB 1177 Hollingsworth - Density BounusCITY OF PALM DESERT
Community Services Division
Staff Report
REQUEST: CONSIDERATION OF LEGISLATIVE REVIEW COMMITTEE ACTION
ON SB 1177 (HOLUNGSWORTH) AT ITS MEETING OF
FEBRUARY 28, 2006
SUBMITTED BY: Patricia Scully, CFEE, Senior Management Analyst
DATE: March 23, 2006
CONTENTS: SB 1177 Language
RECOMMENDATION:
By Minute Motion, concur with the action taken by the Legislative Review Committee at its
Meeting of February 28, 2006, and direct staff to prepare a letter of opposition for the Mayor's
signature with regard to SB 1177 (Hollingsworth) relative to density bonus.
EXECUTIVE SUMMARY:
Passage of SB 1177 would delete the requirement that developers show that the waiver or
modification of development standards is necessary to make housing units economically
feasible.
BACKGROUND:
Current Planning and Zoning Law requires, when a developer of housing proposes a
development within the jurisdiction of a local govemment, that that agency provide the
developer with a density bonus or other incentives or concessions for the production of lower
income housing units or the donation of land within the development if the developer meets
certain requirements, including that the developer agrees to construct a specified percentage
of total units for specified income households or qualifying residents. Existing law also prohibits
local agencies from applying a development standard that has the effect of precluding the
construction of a development meeting affordable housing criteria that entitles the developer
to a density bonus and incentives or concessions. It also authorizes a developer to apply for
a waiver or reduction of development standards and requires the developer to show that the
waiver or modification is necessary to make the housing units economically feasible. SB 1177
would delete the requirement that the developer show that the waiver or modification of
development standards is necessary to make the housing units economically feasible.
CITY COUNCIL STAFF REPORT
RE: SB 1177 (HOLLINGSWORTH) MARCH 23, 2006
The City of Palm Desert believes that project -specific economic analyses are needed to
evaluate, on a case -by -case basis, when these types of incentives are necessary.
Therefore, the Legislative Review Committee recommends that the City Council oppose SB
1177 and direct staff to prepare a letter stating that position to appropriate legislators for the
Mayor's signature.
PATRICIA SCULLY, FEE
SENIO MANAGE ENT ANALYST
PS:mpg
2
CARLOS L. 0911'EGA
CITY MANAGER
SB 1177 Senate Bill - AMENDED
Page 1 of 10
BILL NUMBER: SB 1177 AMENDED
BILL TEXT'
AMENDED IN SENATE FEBRUARY 21, 2006
IN"RODUCED BY Senator Hollingsworth
( Pri.cipal coauthor: Assembly Member
Jones )
JANUARY 1-3, 2006
An act to amend Section 65915 of the Government Code, relating to
housing.
LEGISLATIVE COUNSEL'S DIGEST
SB 1177, as amended, Hollingsworth Housing: density bonus.
The Planning and Zoning Law requires, when a developer of rousing
proposes a housing development within the jur_sdiction of the local
government, that the city, county, or city and county provide the
developer with a density bonus or other incentives or concessions for
the production. of Lower income housing .:nits or the donation of land
within the development if the developer meets certain requirements,
including a requirement that the developer agrees to construct a
specified percentage of the total units for specified income
households or qualifying residents.
Existing law prohibits a city, county, and city and county from
applying a development standard that has the effect of precluding the
construction of a development meeting the affordable housing
criteria that entitles the developer to a density bonus and
incentives or concessions. Existina law authorizes a develooer to
apply for a waiver or reduction of development standards and requires
the developer to show that the waiver or modification is necessary
to make the housing units economically feasible.
This bill would delete t:ne requirement that the developer show
that the waiver or modification of development standards is necessary
to _hake the housing units economically feasible.
Vote: majority. Appropriation: no. Fiscal committee: no.
State -mandated local program: no.
THE PEOPLE CF THE S'_ATE OF CALIFORNIA DC ENACT AS FOLLOWS:
SECTION I. Section 65915 of the Government Code is amended to
read:
65915. (a) When an applicant seeks a density bonus for a housing
development within, or for the donation of land for housing within,
tine j;:risdiction of a city, county, or city and county, that local
government shall provide the applicant incentives or concessions for
the production of housing units and child care facilities as
prescribed in this section. All cities, counties, or cities and
counties shall adopt an ordinance that specifies how compliance with
this section will be implemented.
(b) (1) A city, county, or city and county shall grant one density
bonus, the amount of which shall be as specified in subdivision
'7). (f), and incentives or
http://info.sen.ca.gov/pub/bilUsen/sb_1151-1200/sb_1177_bill_20060221_amended sen.html 3/2/2006
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SB 1177 Senate Bill - AMENDED
Page 3 of 10
the resale shall be used as the initial market value.
(C) For purposes of this subdivision, the local government's
proportionate share of appreciation shall be equal to the ratio of
the initial subsidy to the fair market value of the home at the time
of initial sale.
(d) (1) An applicant for a density bonus pursuant to subdivision
(b) may submit to a city, county, or city and county a proposal for
the specific incentives or concessions that the applicant requests
pursuant to this section, and may request a meeting with the city,
county, or city and county. The city, county, or city and county
shall grant the concession or incentive requested by the applicant
unless the city, county, or city and county makes a written: finding,
based upon substantial evidence, of either of the following:
(A) "he concession or incentive is not required in order 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).
(3) 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 the physical environment or
on any real property that is listed in the California Register of
Historical Resources and for which there is no feasible method to
satisfactorily mitigate or avoid the specific adverse impact without
rendering the development unaffordable to low- and moderate -income
households.
(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 common interest
development.
(B) Two incentives or concessions for projects that include at
least 20 percent of the total units for lower income households, at
least 10 percent for very low income households, or at least 20
percent for persons and families of moderate income in a common
interest development.
(C) Three incentives or concessions for projects that include at
least 30 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 common
interest development.
(3) T-:e applicant may initiate judicial proceedings if the city,
county, or city and county 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. Nothing in this
subdivision shall 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, safety, or the physical environment, and for which there
is no feasible method to satisfactorily mitigate or avoid the
specific adverse impact. Nothing in this subdivision shall 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, county, or city and county shall establish procedures for
carrying out this section, that shall_ include legislative body
approval of the means of compliance with this section. The city,
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SB 1177 Senate Bill - AMENDED
Page 4 of 10
county, or city and county shall also establish procedures for
waiving or modifying development and zoning standards that would
otherwise inhibit the utilization of the density bonus on specific
sites. These procedures shall include, but not be limited to, such
items as minimum lot size, side yard setbacks, and placement of
public works improvements.
(e) In no case may a city, county, or city and county apply any
development standard that will have the effect of 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. An applicant may submit to a city, county, or city and
county a proposal for the waiver or reduction of development
standards anc may request a meeting with the city, county, or city
and county. If a court finds that the refusal to grant a waiver or
redaction 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 does not 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, safety, or the
physical environment, and for which there is no feasible method to
satisfactorily mitigate or avoid the specific adverse impact. This
subdivision does not 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.
(_`) For the purposes of this chapter, "density bonus" means a
density increase over the otherwise maxi:r.um allowable residential
density under the applicable zoning ordinance and land use element of
the general plan as of the date of application by the applicant to
the city, county, or city and county. The applicant may elect to
accept a lesser percentage of density bonus. The amount of density
bonus 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 Percentage Density Bonus
Units
-0 20
11 21.5
12 23
13 24.5
14 26
15 27.5
17 30.5
18 32
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SB 1177 Senate Bill - AMENDED
Page 5 of 10
19 33.3
2C 35
(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
5
6
7
8
9
10
11
Percentage Density
Bonus
20
22.5
25
27.5
30
32.5
35
(3) For housing developments meeting the criteria of subparagraph
(C) of paragraph (1) of subdivision (b), the density bonus shall be
20 percent.
(4) For ho,.<sing developments meeting the criteria of subparagraph
(D) of paragraph (1) of subdivision (b), the density bonus shal_ be
calculated as follows:
Percentage Moderate -Income Percentage Density
Units
Bonus
10
5
11
6
12
7
13
8
14
9
15
10
16
1_
17
-2
18
13
_9
=4
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SB 1177 Senate Bill - AMENDED
Page 6 of 10
20
15
21
16
22
17
23
i8
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
(5) A11 densi y calculations resulting in fractional units shall
be rounded up to the next whole number. The granting of a density
bonus shall not be interpreted, in and of itself, to require a
general plan amendment, local coastal plan amendment, zoning change,
or other discretionary approval. As used in subdivision (b), "total
units" or "total dwelling units" does not include units permitted by
a density bonus awarded pursuant to this section or any local law
granting a greater density bonus. The density bonus provided by t:Iis
section shall apply to housing developments consisting of five or
more dwelling units.
(g) (1) When an applicant for a ter.tative subdivision map, parcel
mad, or other residential development approval donates land 7:�o a
city, county, or city and county as provided for in this subdivision,
the applicant shall be entitled to a 15-percent increase above the
otherwise maximum: allowable residential density under the applicable
zoning ordinance and land use element of the general plan for the
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SB 1177 Senate Bill - AMENDED
Page 7 of 10
entire development, as follows:
Fercentage Very Low
Percentage Density Bonus
Income
_C
15
11
16
12
17
13
18
14
19
15
20
16
21
17
22
=8
23
=9
24
20
25
2_
26
22
27
23
28
24
29
25
30
26
31
27
32
28
33
29
34
30
35
(2) This increase shall be 'n 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 both the
increase required pursuant to this subdivision and subdivision (b).
All density calculations resulting in fractional units shall be
rounded up to the next whole number. This subdivision does not
enlarge or diminish the authority of a city, county, or city and
county 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
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SB 1177 Senate Bill - AMENDED
Page8of10
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 for
development as affordable housina, and is or will be served by
adequate public facilities and infrastructure. The land shall have
appropriate zoning and development standards to make the development
of the affordable snits feasible. No later than the date of approval
of the final_ subdivision map, parcel map, or of the residential
development, the transferred land shall have all of the permits and
approvals, other than building permits, necessary for the development
of the very low income housing units on the transferred land, except
that the local government may subject the proposed development to
subsecuent design review to the extent authorized by subdivision (i)
of Section 65583.2 if the design is not reviewed by the local
government prior to the time of transfer.
(D) The transferred land and the affordable units shall be subject
to a deed restriction en.surina 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 dedication.
(F) -he 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.
(F) The transferred land shall be within the boundary of the
proposed development or, if the local agency agrees, within
one-cuarter mile of the boundary of the proposed development.
(h) (1) When an applicant proposes to construct a housing
development that conforms to the requirements of subdivision (b) and
includes a child care facility that will be located on the premises
of, as part of, or adjacent to, the project, the city, county, or
city and county 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 child care facility.
(B) An additional concession or incentive that contributes
significantly to the economic feasib'_lity of the construction of the
child care facility.
(2) The city, county, or city and county shall require, as a
condition of approving the housing development, that the following
occur:
(A) The child care 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 child care 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, a city,
county, or a city and county shall not be required to provide a
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SB 1177 Senate Bill -AMENDED
Page 9 of 10
density bonus or concession for a child care facility if it finds,
based upon substantial evidence, that the community has adequate
child care facilities.
(4) "Child care facility," as used in this section, means a c-i_d
day care facility other than a family day care home, including, but
not limited to, infant centers, preschools, extended day care
facilities, and schoolage child care centers.
(i) "Housing development," as used in this section, means one or
more groups of projects for residential units constructed in the
planned deve'_opmen_ of a city, county, or city and county. For the
purposes of this section, "housing development" also includes a
subdivision or common interest development, as defined in Section
1351 of the Civil Code, approved by a city, county, or city and
county 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
reabi_itation 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 do not have to be based upon individual subdivision
reaps or parcels. The density bonus shall be permitted in geographic
areas of the housing development other than the areas where the units
for the lower income households are located.
(j) The granting of a concession or incentive shall not be
interpreted, in and of itself, to require a general plan amendment,
local coastal plan amendment, zoning change, or other discretionary
approval. This provision is declaratory of existing law.
(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
BuLlding Standards Commission as provided in Part 2.5 (commencing
wit'- 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,
financially sufficient, and actual cost reductions.
(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 lard 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, county, or city and county that result in
identifiable, financially sufficient, and actual cost reductions.
This subdivision 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, county, or city and
county, or the waiver of fees or dedication requirements.
(_) This section does not supersede or in any way alter or lessen
the effect or application of the California Coastal Act (Division 20
(commencing with Section 30000) of the Public Resources Code.
(m) This section does not prohibit a city, county, or city and
county from granting a density bonus greater than what is described
in this section for a development that meets the requirements of t:is
section or from granting a proportionately lower density bonus than
what is required by this section for developments that do not meet
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SB 1177 Senate Bill - AMENDED
Page 10 of 10
the recuirements of this section.
(n) For purposes of this section, the following definitions shall
apply:
(1) "Development standard" includes site or construction
condi-ions that apply to a residential development pursuant to any
ordinance, general plan element, specific plan, charter amendment, or
other local condition, law, policy, resolution, or regulation.
(2) "Maxim•,:m allowable residential density" means the density
allowed under the zoning ordinance, or if a range of density is
permitted, means the maximum allowable density for the specific
zoning range applicable to the project.
(o) (1) Upon the request of the developer, no city, county, or
city and county shall require a vehicular parking ratio, inclusive of
handicapped and guest parking, of a development meeting the criteria
or subdivision (b), that exceeds the following ratios:
(A) Zero to one bedrooms: one onsite parking space.
(B) Two to three bedrooms: two onsite parking spaces.
(C) Four and more bedrooms: two and one-half parking spaces.
(2) 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
develooment may provide "onsite parking" through tandem parking or
unccvered parking, buz not through onstreez parking.
(3) This subdivision shall apply to a development that meets the
recuirements of subdivision (b) but only at the request of the
applicant. An applicant may request additional parking incentives or
concessions beyond those provided in this section, subject to
subdivision (d).
http://info.sen.ca.gov/pub/bill/senlsb_1151-1200/sb_1177 bill_20060221_amended_sen.html 3/2/2006