Density Bonus Law Overview January 5 th, 2016 1
State Density Bonus Law The State incentivizes development of new housing units by preempting local zoning laws to increase allowable site density and reduce some development standards. The State Density Bonus law was originally adopted by Calabasas in 1998 (CMC 17.22), and was subsequently updated in 2006 and 2010. To date, three projects (totaling 210 new housing units) have taken advantage of the State density bonus, and a total of 83 affordable units were created among two of the three projects. 2
State Density Bonus Law Consistent with the State Density Bonus law, the City s Affordable Housing law: Grants a density bonus (up to 35%) to qualifying residential projects on a proportional scale. Defines qualifying projects as: 5% dedicated moderate income units 10% dedicated low or very-low income units 100% senior or 10% moderate for sale Allows for development standard concessions (up to 3), as determined on a progressive scale. 3
State Density Bonus Law To address the housing needs of the State of California, including affordable housing development, the State Legislature passed three new laws that took effect on Jan. 1, 2017, and which pre-empt local zoning. The purpose of the new laws is to expand the definition of affordable housing, and further reduce local barriers to housing development. The new law is organized into two components: Substantive Changes Procedural Changes 4
Substantive Law Changes The new State law expands the types of projects eligible for a density bonus: Mixed-use developments (residential/commercial) Adds new categories (housing for transitional foster youth, disabled veterans, or transitional housing for homeless persons) Includes replacement rental units (where required) provided that the units are protected by either rent control or an affordability covenant 5
Substantive Law Changes It preempts the City s power to set maximum density levels by zone for bonus units It significantly lowers the standard of City review for a concession or incentive request City must grant the request unless it makes written findings that the request does not result in identifiable and actual cost reductions... City may deny the request based on a specific adverse impact to health, safety or the physical environment that is not mitigatable 6
Key Terms: Concession or Incentive Per State law (CGC 65915), a concession or incentive means any of the following: A reduction in site development standards or a modification of zoning code requirements or architectural design requirements; 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; or Other regulatory incentives or concessions proposed by the developer that result in identifiable and actual cost reductions to provide for affordable housing costs. 7
Key Terms: Waiver Per State law (CGC 65915): An applicant may submit a proposal for the waiver or reduction of development standards that will have the effect of physically precluding the construction of an affordable housing development. A proposal for a waiver shall neither reduce nor increase the number of incentives or concessions to which the applicant is entitled. A Developer may request unlimited waivers 8
Substantive Law Changes Under the new State law, the City may be challenged in Court if it denies a concession, incentive, or waiver If the City does not prevail, the Developer is entitled to their attorneys fees and Court costs 9
Development Standards Susceptible to Incentives/Concessions/Waivers Per State Law (CGC 65915): a 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, 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. 10
Eligible City Development Standards All standards in Chapters 17.12, 17.13, 17.14, 17.16 and 17.18 (such as zoning setbacks, building height, density, site coverage) General development standards in Chapter 17.20 (access, circulation, design, fences and walls, screening, waste storage, undergrounding of utilities, pervious surfaces) Architectural and/or site design requirements specified in our Master Plans (Old Town MP, Las Virgenes Road MP, West Calabasas Road MP) Others - 17.24 Art in Public Places, 17.26 Landscaping, 17.27 Lighting, 17.28 Parking/Loading, 17.30 Signage, 17.34 Green Buildings 11
Development Scenario Multifamily Lot New Housing 12
Development Scenario With Density Bonus New Housing New ADDITIONAL Housing New Affordable Unit 13
Development Scenario (1) Parking Reduction Concession 14
Development Scenario (2)Landscaping Reduction Concession 15
Development Scenario Concessions result in additional site area being available for development 16
Development Scenario Additional concessions regarding maximum allowable FAR, and/or minimum allowable setbacks, further promote densification under the State Density Bonus law. New Affordable Units 17
Development Scenario Waiver of maximum allowable building height may also be sought. New Affordable Units 18
Procedural Changes Requires an expeditious process for Density Bonus applications, including: Adoption of procedures and timelines for handling applications (new) A list of documents and information required for an application to be deemed complete (new) Notification of application completeness within 30 days of receipt 19
Procedural Changes Prohibits the City from requiring any additional report(s) or study as a precondition or a condition of approval of a Density Bonus application However, the City may request reasonable documentation to establish eligibility for the requested density bonus, incentives and concessions, waivers and reduced parking ratio 20
Procedural Changes Neither the consideration of an application for a density bonus, nor the granting of a concession or incentive for a density bonus, shall require, or be interpreted, in and of itself to require, a General Plan Amendment, zone change or other discretionary approval. (CGC 65915) 21
Procedural Changes The City s ordinance identifies that requests for Density Bonuses are not stand-alone applications and cannot independently be deemed complete (or incomplete) until the application for the entire housing project is deemed complete. 22
Summary of Chapter 17.22 Code Amendment to Comply with New State Density Bonus Law Amendments include the following: Expanded eligible projects Expanded development standards eligible for a concession, incentive, or waiver Limitations on application content and basis of reviews and approvals Tighter timeframes for processing 23
Recommendation Staff recommends that the Planning Commission adopt Resolution No. 2017-635 recommending to the City Council adoption of Draft Ordinance No. 2017-346, amending Chapter 17.22 of the Development Code to conform to the new State density bonus law. 24