19.27.010 General density bonus provisions.

(A) Application. Any person that desires a density bonus shall make an application on a form approved by the director at the time of submitting an entitlement application for the housing development for which a density bonus is requested. The density bonus provided by this chapter only applies to housing developments consisting of five or more dwelling units.

(B) Incentives and Concessions. When an applicant seeks a density bonus for a housing development or for the donation of land for housing within the city, the city shall provide the applicant incentives or concessions for the production of housing units and childcare facilities as provided in this chapter.

(C) Available Density Bonus Options. The planning commission or city council shall grant one density bonus, the amount of which shall be as specified in Section 19.27.030, and incentives or concessions as described in Section 19.27.020, when 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 chapter, that shall contain at least one of the following:

(1) Ten percent of the total units of a housing development for lower income households.

(2) Five percent of the total units of a housing development for very low-income households.

(3) A senior citizen housing development.

(4) Ten percent of the total dwelling units in a common interest development for moderate-income households, provided that all units in the housing development are offered to the public for purchase.

(5) Ten percent of the total units of a housing development for transitional foster youth, disabled veterans, or homeless persons to be provided at the same affordability level as very low-income units subject to a recorded affordability restriction of fifty-five years. As used in this subsection, "total units" or "total dwelling units" does not include units permitted by a density bonus awarded pursuant to this chapter.

(D) Applicant's Election of Basis for Bonus. For purposes of calculating the amount of the density bonus pursuant to Section 19.27.030, the applicant who requests a density bonus pursuant to this section must elect whether the bonus shall be awarded on the basis of paragraph (1), (2), (3), (4) or (5) of subsection C of this section.

(E) Continued Affordability.

(1) Qualified Households. An applicant shall agree that the occupants of the low, very low, and moderate income units that are directly related to the receipt of the density bonus in a housing development or common interest development shall be low, very low, or moderate income households, as applicable.

(2) Term.

(a) An applicant shall agree to set rents at affordable rent levels and to the continued affordability of all rental units that qualified the applicant for the award of the density bonus for a period of fifty-five years or a longer period of time if required by any applicable construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy program.

(b) All for-sale units shall initially be sold at an affordable housing cost and shall remain subject to a resale affordable housing cost restriction for a period of fifty-five years or a longer period of time if required by any applicable construction or mortgage financing assistance program, mortgage insurance program, or other subsidy program. The applicable resale affordable housing cost restriction period shall reset upon each sale of an affordable unit.

(3) Equity Sharing. The city shall require an equity-sharing agreement for all for-sale units, unless such an agreement would be in conflict with the requirements of another public funding source or law.

(F) Housing Development Involving Property Containing Existing Affordable Housing. An applicant shall be ineligible for a density bonus or any other incentives or concessions under this chapter if the housing development is proposed on any parcel or parcels on which rental dwelling units that:

(1) Have been vacated or demolished in the five-year period preceding the application;

(2) 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;

(3) Subject to any other form of rent or price control through a public entity's valid exercise of its police power; or

(4) Occupied by lower or very low income households, for a proposed housing development involving a property containing existing affordable housing, unless:

(a) The proposed housing development replaces the existing affordable housing units. If the replacement units will be rental dwelling units, these units shall be subject to a recorded affordability restriction for at least fifty-five years. If the proposed development is for-sale units, the units replaced shall be affordable as defined in Section 50052.5 of the Health and Safety Code, and

(b) Either:

(i) The proposed housing development, inclusive of the units replaced, contains affordable units at the percentages set forth in subsection C of this section, or

(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.