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HomeMy WebLinkAbout2039 ORDINANCE NO. 2039 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, AMENDING THE ARCADIA MUNICIPAL CODE BY ADDING A DIVISION 7 TO PART 5, CHAPTER 2, OF ARTICLE IX TO ESTABLISH PROVISIONS TO GRANT A DENSITY BONUS FOR R-2 AND R-3 MULTIPLE-FAMILY PROJECTS THAT PROVIDE HOUSING FOR LOWER-INCOME HOUSEHOLDS, VERY LOW-INCOME HOUSEHOLDS OR SENIOR CITIZENS. WHEREAS, Text Amendment 95-002 was initiated by the City to consider a Density Bonus Ordinance for R-2 and R-3 multiple-family projects that provide housing for lower-income households, very low-income. households or senior citizens. WHEREAS, a public hearing was held on April 25, 1995, before the Planning Commission, at which time all interested persons were given full opportunity to be heard, and to present evidence, and WHEREAS, the Planning Commission of the City of Arcadia recommended approval of the text amendment as set forth in the staff report from the Development Services Department to the City Council, and WHEREAS, the City Council conducted a public hearing concerning the text amendment on May 16, 1995, and approved the text amendment. WHEREAS, the City Council determines that the proposed Density Bonus Ordinance is intended to comply with the State Density Bonus Law, Government Code Section 65915, and to be in accordance with the goals set forth in the 1990 General Plan Housing Element for the City of Arcadia. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARCADIA DOES HEREBY ORDAIN AS FOLLOWS: Section 1. That the Arcadia Municipal Code is hereby amended by adding a new Division 7 to Part 5, Chapter 2, of Article IX to read as follows: -1- DIVISION 7. DENSITY BONUS ORDINANCE FOR R-2 AND R-3 MULTIPLE-FAMILY ZONE PROJECTS 9257. INTENT AND PURPOSE. This Division is established to provide a Density Bonus Ordinance for R-2 and R-3 multiple-family zone projects, which is intended to comply with the State Density Bonus Law, Government Code Section 65915. In accordance with the provisions of this Chapter the City shall grant a density bonus and an additional concession, or financially equivalent incentive(s), to developers of such projects agreeing to construct a specified percentage of housing for lower-income households, very-low income households or senior citizens. 9257.1. DEFINITIONS. For the purposes of this Division, certain words and phrases used herein shall be defined as follows: a. Affordability. Affordability is determined by the economic feasibility to provide lower-income units in a housing development. b. Affordable units. Affordable units shall mean housing units that have costs as defined in Sections 5005.2 of the Health and Safety Code or rents at qualifying levels for lower-income or very low-income households. c. Concession. Concession shall mean a benefit offered by the City to facilitate construction of eligible projects as defined by the provisions of this Chapter. Benefits may include, but are not limited to, priority processing, fee deferments and waivers, and granting of modifications to applicable zoning requirements. d. Density bonus. Density bonus shall mean an increase density of at least twenty-five (25) percent over the maximum authorized density which is granted to .-2- a developer of a multiple-family project that agrees to construct a prescribed percentage of lower-income units. Exception: For the purpose of residential condominium conversion projects, "density bonus" shall mean an increase in units of twenty-five (25) percent over the number of apartments, to be provided within the existing structure or structures proposed for conversion. e. Economically feasible. Economically feasible shall mean when a housing development can be built with a reasonable rate of return. The developer's financial ability to build the project shall not be a factor. f. Housing development. Housing development shall mean multiple-family residential projects within the R-2 and R-3 zones of the City. g. Household type. Household type shall mean whether the occupants of the dwelling units are lower-income, very low- income or senior citizens. h. Lower-income and very low-income households. Lower-income and very low-income households are defined by income limits that are established In Sections 50079.5 and 50105 respectively of the Health and Safety Code. i. Moderate-income households. Moderate-income households are defined by income limits that are established in Section 50093 of the Health and Safety Code. j. Senior citizens. Senior citizens shall mean persons who are at least sixty-two years of age; or persons who are at least fifty-five years of age in a senior citizen housing development, in accordance with the State and Federal Law. k. Senior citizen units. Senior citizen units shall mean government subsidized housing units for senior citizens; housing intended for and occupied by persons at least sixty-two years of age; or a housing development consisting of at least one hundred fifty (150) units in which eighty percent of the units have at least one person aged fifty-five or older and which provide facilities and services designed for seniors. -3- 9257.2. APPLICABILITY AND EXCEPTION. a. Housing developments consisting of five (5) units or more (excluding bonus units) are eligible for a density bonus, and additional concessions or incentives, provided that the project meets one or more of the following criteria: 1. At least twenty (20) percent of the total number of units of a housing development are designated for lower-income households; or 2. At least ten (10) percent of the total number of units of a housing development are designated for very low-income households; or 3. At least fifty (50) percent of the total number of units of a housing development are designated for senior citizens. Exception: Projects (excluding condominium conversions) which meet the criteria set forth in this chapter are entitled to a density bonus and additional concessions, unless the City adopts a written finding that the additional concession is not required to make the units affordable. b. Residential condominium conversion projects (converting apartments into condominium units) consisting of five (5) apartment units or more are eligible for a twenty-five (25) percent density bonus, as set forth in this chapter, provided that the project meets one or more of the following criteria: 1. At least thirty-three (33) percent of the total number of units of the proposed condominium conversion project are designated for moderate-income households; or 2. At least fifteen (15) percent of the total number of units of the proposed condominium conversion project are designated for low-income households. A proposed condominium conversion project shall be ineligible for a density bonus under the provisions of this Chapter if the apartments proposed for conversion were previously granted a density bonus. -4- c. The City shall deny a proposed housing development with affordable units if anyone of the following findings is made: 1. The proposed development does not conform to the General Plan or applicable zoning and development requirements. 2. The project would have a specific, adverse impact upon the public health or safety, and there is no feasible method to satisfactorily mitigate the identified adverse impact. 9257.3. ADDITIONAL CONCESSIONS. The City shall grant additional concessions or incentives to the developer if it is shown that the project with the affordable units would not be economically feasible without said concessions. Such concessions may be any of the following: a. A modification of applicable zoning code requirements. b. Reduction of application or construction permit fees. c. Other regulatory concessions proposed by the applicant or the City. 9257.4. GENERAL REQUIREMENTS. a. Affordable units must remain affordable for thirty (30 ) years if both a density bonus and an additional concession are granted. These units shall remain affordable for a longer period of time if required by the construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy program. If only a density bonus is granted, the affordable units shall remain affordable for ten (10) years. b. Affordable units shall be dispersed throughout the project and architecturally compatible with the overall housing development. c. In calculating the additional density bonus units to be permitted over what is currently allowed by the existing zoning, or the amount of affordable units to be required, any fractional remainder greater that one half shall be rounded up to the next whole number. -5- d. Those units targeted for lower-income households shall be affordable at a rent that does not exceed thirty (30) percent of sixty (60) percent of the monthly area median income, as published annually by the California Department of Housing and Community Development in Title 25 of the California Code of Regulations, and adjusted for household size. e. Those units targeted for very low-income households shall be affordable at a rent that does not exceed thirty (30) percent of fifty (50) percent of the monthly area median income, as published annually by the California Department of Housing and Community Development in Title 25 of the California Code of Regulations, and adjusted for household size. f. The total mortgage payments for those units in a condominium housing development designated for low-income or very low-income households shall not exceed the criteria specified for maximum rents in this Chapter. Said mortgage payments include principal, interest, taxes, insurance, assessment district fees, and homeowner association fees, if applicable. 9257.5. APPLICATION PROCEDURES. a. A developer may submit a preliminary proposal for a density bonus prior to a formal application. The City shall respond within ninety (90) days of receipt of a written proposal, notifying the applicant in writing of the procedures which will be followed in processing the application. b. The formal application shall follow the review process as set forth for text amendments in Article IX, Chapter 2, Part 9, Division 3 of the Arcadia Municipal Code, and shall provide additional information as specified in this Chapter and as requested by the City. c. Concurrent with the submittal of the formal application the applicant shall also provide the following items to ensure compliance with the provisions of this Chapter: -6- 1. A "Density Bonus Agreement" (in a form approved by the City Attorney) shall be approved by the City Council, and shall run with the land. It may include, but not be limited to providing the following information: (a) The number of requ.ested dwelling units above the amount allowed by the existing zoning, and the additional incentives requested. (b) Household type, number, location, size and construction scheduling of all affordable units. (c) The time period of affordability for the affordable units, as set forth in this Chapter. (d) The standards for maximum qualifying incomes for affordable units. (e) The standards for maximum rents or sales prices for affordable units. (f) The process to be used to certify tenant and homeowner incomes. (g) The arrangements with the City for the monitoring of the affordable units. (h) How vacancies will be marketed and filled. (i) Restrictions and enforcement mechanisms binding on the property upon its sale or transfer. (j) Penalties and enforcement mechanisms In the event of a failure to maintain the affordability provisions. (k) Any other provisions deemed necessary by the City of Arcadia. 2. A project financial report (pro forma) shall be submitted to allow the City to evaluate the financial need for the additional incentives. The City may retain a consultant to review the financial report. The cost of the consultant shall be at the expense of the applicant. Section 2. Severability. If any section, subsection, sentence, clause, phrase or portion of this Ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not effect the validity of the remaining portions of this Ordinance. The City Council of the City of -7- Arcadia hereby declares that it would have adopted this Ordinance and each section, subsection, sentence, clause, phrase or portion thereof irrespective of the fact that anyone or more sections, subsections, sentences, clauses, phrases or portions be declared invalid or unconstitutional. Section 3. That the City Clerk shall certify to the adoption of this Ordinance and shall cause a copy of the same to be published in the official newspaper of the City of Arcadia within fifteen (15) days after its adoption. Passed, approved and adopted this 20th day of June ,1995. ATTEST: City Clerk of the APPROVED AS TO FORM: fA v1f IJ MICHAEL H. MILLER h1~ City Attorney -8- STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS: CITY OF ARCADIA ) I, JUNE D. ALFORD, City clerk of the City of Arcadia, hereby certify that the foregoing Ordinance No. 2039 was passed and adopted by the City Council of the City of Arcadia, signed by the Mayor and attested to by the City Clerk at a regular meeting of said City Council held on the 20th day of June ,1995, and that said Ordinance was adopted by the following vote, to wit: AYES: Councilmember Chang, Kuhn, Young and Loj eski NOES; None ABSENT: None ;:;?:__"J ~~ City Clerk of the y of Arcadi: -9-