Amended in Senate August 22, 2014

Amended in Senate June 26, 2014

Amended in Senate June 17, 2014

Amended in Assembly May 5, 2014

Amended in Assembly April 22, 2014

Amended in Assembly March 28, 2014

California Legislature—2013–14 Regular Session

Assembly BillNo. 2222


Introduced by Assembly Member Nazarian

February 20, 2014


An act to amend Sections 65915 and 65915.5 of the Government Code, relating to housing.

LEGISLATIVE COUNSEL’S DIGEST

AB 2222, as amended, Nazarian. Housing density bonus.

The Planning and Zoning Law requires, when a developer of housing proposes a housing development within the jurisdiction of the local government, that the city, county, or city and county provide the developer with a density bonus and other incentives or concessions for the production of lower income housing units or the donation of land within the development if the developer, among other things, agrees to construct a specified percentage of units for very low, low-, or moderate-income households or qualifying residents.

Existing law requires continued affordability for 30 years or longer, as specified, of all very low and low-income units that qualified an applicant for a density bonus.

This bill instead would require continued affordability for 55 years or longer, as specified, of all very low and low-income rental units that qualified an applicant for a density bonus. This bill would also include very low and low-income persons among the initial occupants of for-sale units. This bill also would prohibit an applicant from receiving a density bonus unless the proposed housing development would, for units subject to certain affordability requirements that were occupied by qualifying persons on the date of application, provide at least the same number of units of equivalent size or type, or both, to be made available for rent at affordable housing costs to, and occupied by, persons and families in the same or lower income category as those households in occupancy. For those subject types of units that have been vacated or demolished at the time of application, this bill would condition a density bonus upon at least the same number of units of equivalent size or type, or both, as existed at the highpoint in the preceding 5 years being made availablebegin delete for rentend delete at affordablebegin insert rent or affordableend insert housingbegin delete costsend deletebegin insert costend insert to, and occupied by, persons and families in the same or lower income category as those persons and families in occupancy at that time, if known.

Existing law also requires a city, county, or city and county to grant a density bonus or other incentives, as specified, when an applicant for approval to convert apartments to a condominium project agrees, among other things, to provide a specified percentage of units for low- or moderate-income persons and families or for lower income households, as defined.

This bill also would prohibit an applicant from receiving a density bonus unless the proposed condominium project would replace the existing affordable units with at least the same number of affordable units of equivalent size or type, or both, and the proposedbegin delete development would either include the additional required set aside ofend deletebegin insert development, inclusive of the units replaced pursuant to the requirements described above, containsend insert affordable units according to specified percentages or consist entirely of affordable units.

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

Section 65915 of the Government Code is
2amended to read:

P3    1

65915.  

(a) When an applicant seeks a density bonus for a
2housing development within, or for the donation of land for housing
3within, the jurisdiction of a city, county, or city and county, that
4local government shall provide the applicant with incentives or
5concessions for the production of housing units and child care
6facilities as prescribed in this section. All cities, counties, or cities
7and counties shall adopt an ordinance that specifies how
8compliance with this section will be implemented. Failure to adopt
9an ordinance shall not relieve a city, county, or city and county
10from complying with this section.

11(b) (1) A city, county, or city and county shall grant one density
12 bonus, the amount of which shall be as specified in subdivision
13(f), and incentives or concessions, as described in subdivision (d),
14when an applicant for a housing development seeks and agrees to
15construct a housing development, excluding any units permitted
16by the density bonus awarded pursuant to this section, that will
17contain at least any one of the following:

18(A) Ten percent of the total units of a housing development for
19lower income households, as defined in Section 50079.5 of the
20Health and Safety Code.

21(B) Five percent of the total units of a housing development for
22very low income households, as defined in Section 50105 of the
23Health and Safety Code.

24(C) A senior citizen housing development, as defined in Sections
2551.3 and 51.12 of the Civil Code, or mobilehome park that limits
26residency based on age requirements for housing for older persons
27pursuant to Section 798.76 or 799.5 of the Civil Code.

28(D) Ten percent of the total dwelling units in a common interest
29development as defined in Section 4100 of the Civil Code for
30persons and families of moderate income, as defined in Section
3150093 of the Health and Safety Code, provided that all units in the
32development are offered to the public for purchase.

33(2) For purposes of calculating the amount of the density bonus
34pursuant to subdivision (f), the applicant who requests a density
35bonus pursuant to this subdivision shall elect whether the bonus
36shall be awarded on the basis of subparagraph (A), (B), (C), or (D)
37of paragraph (1).

38(3) For the purposes of this section, “total units” or “total
39dwelling units” does not include units added by a density bonus
P4    1awarded pursuant to this section or any local law granting a greater
2density bonus.

3(c) (1) An applicant shall agree to, and the city, county, or city
4and county shall ensure, continued affordability of all very low
5and low-income rental units that qualified the applicant for the
6award of the density bonus for 55 years or a longer period of time
7if required by the construction or mortgage financing assistance
8program, mortgage insurance program, or rental subsidy program.
9Rents for the lower income density bonus units shall be set at an
10affordable rent as defined in Section 50053 of the Health and Safety
11Code.

12(2) An applicant shall agree to, and the city, county, or city and
13county shall ensure that, the initial occupant of all for-sale units
14that qualified the applicant for the award of the density bonus are
15persons and families of very low, low, or moderate income, as
16 required, and that the units are offered at an affordable housing
17cost, as that cost is defined in Section 50052.5 of the Health and
18Safety Code. The local government shall enforce an equity sharing
19agreement, unless it is in conflict with the requirements of another
20public funding source or law. The following apply to the equity
21sharing agreement:

22(A) Upon resale, the seller of the unit shall retain the value of
23any improvements, the downpayment, and the seller’s proportionate
24share of appreciation. The local government shall recapture any
25initial subsidy, as defined in subparagraph (B), and its proportionate
26share of appreciation, as defined in subparagraph (C), which
27amount shall be used within five years for any of the purposes
28described in subdivision (e) of Section 33334.2 of the Health and
29Safety Code that promote home ownership.

30(B) For purposes of this subdivision, the local government’s
31initial subsidy shall be equal to the fair market value of the home
32at the time of initial sale minus the initial sale price to the
33moderate-income household, plus the amount of any downpayment
34assistance or mortgage assistance. If upon resale the market value
35is lower than the initial market value, then the value at the time of
36the resale shall be used as the initial market value.

37(C) For purposes of this subdivision, the local government’s
38proportionate share of appreciation shall be equal to the ratio of
39the local government’s initial subsidy to the fair market value of
40the home at the time of initial sale.

P5    1(3) (A) An applicant shall be ineligible for a density bonus or
2any other incentives or concessions under this section if the housing
3development is proposed on any property that includes a parcel or
4parcels on which rental dwelling units are or, if the dwelling units
5have been vacated or demolished in the five-year period preceding
6the application, have been subject to a recorded covenant,
7ordinance, or law that restricts rents to levels affordable to persons
8and families of lower or very low income; subject to any other
9form of rent or price control through a public entity’s valid exercise
10of its police power; or occupied by lower or very low income
11households, unless the proposed housing development replaces
12 those units, and either of the following applies:

13(i) The proposed housingbegin delete development includes the additional
14required set aside of affordable unitsend delete
begin insert development, inclusive of the
15units replaced pursuant to this paragraph, contains affordable
16unitsend insert
at the percentages set forth in subdivision (b).

17(ii) Each unit in the development, exclusive of a manager’s unit
18or units, is affordable to, and occupied by, either a lower or very
19low income household.

20(B) For the purposes of this paragraph, “replace” shall mean
21either of the following:

22(i) If any dwelling units described in subparagraph (A) are
23occupied on the date of application, the proposed housing
24development shall provide at least the same number of units of
25equivalent size or type, or both, to be made availablebegin delete for rentend delete at
26affordablebegin insert rent or affordableend insert housingbegin delete costsend deletebegin insert costend insert to, and occupied
27by, persons and families in the same or lower income category as
28those households in occupancy. For unoccupied dwelling units
29described in subparagraph (A) in a development with occupied
30units, the proposed housing development shall provide units of
31equivalent size or type, or both, to be made availablebegin delete for rentend delete at
32affordablebegin insert rent or affordableend insert housingbegin delete costsend deletebegin insert costend insert to, and occupied
33by, persons and families in the same or lower income category in
34the same proportion of affordability as the occupied units. All
35replacement calculations resulting in fractional units shall be
36rounded up to the next whole number.begin delete Theseend deletebegin insert If the replacement
37units will be rental dwelling units, theseend insert
units shall be subject to
38a recorded affordability restriction for at least 55 years.begin insert If the
39proposed development is for-sale units, the units replaced shall
40be subject to paragraph (2).end insert

P6    1(ii) If all dwelling units described in subparagraph (A) have
2been vacated or demolished within the five-year period preceding
3the application, the proposed housing development shall provide
4at least the same number of units of equivalent size or type, or
5both, as existed at the highpoint of those units in the five-year
6period preceding the application to be made availablebegin delete for rentend delete at
7affordablebegin insert rent or affordableend insert housingbegin delete costsend deletebegin insert costend insert to, and occupied
8by, persons and families in the same or lower income category as
9those persons and families in occupancy at that time, if known. If
10the incomes of the persons and families in occupancy at the
11highpoint is not known, then one-half of the required units shall
12be made availablebegin delete for rentend delete at affordablebegin insert rent or affordableend insert housing
13begin delete costsend deletebegin insert costend insert to, and occupied by, very low income persons and
14families and one-half of the required units shall be made available
15for rent at affordable housing costs to, and occupied by,
16 low-income persons and families. All replacement calculations
17resulting in fractional units shall be rounded up to the next whole
18 number.begin delete Theseend deletebegin insert If the replacement units will be rental dwelling
19units, theseend insert
units shall be subject to a recorded affordability
20restriction for at least 55 years.begin insert If the proposed development is
21for-sale units, the units replaced shall be subject to paragraph (2).end insert

begin insert

22(C) Paragraph (3) of subdivision (c) does not apply to an
23applicant seeking a density bonus for a proposed housing
24paragraph if their application was submitted to, or processed by,
25a city, county, or city and county before January 1, 2015.

end insert

26(d) (1) An applicant for a density bonus pursuant to subdivision
27(b) may submit to a city, county, or city and county a proposal for
28the specific incentives or concessions that the applicant requests
29pursuant to this section, and may request a meeting with the city,
30county, or city and county. The city, county, or city and county
31shall grant the concession or incentive requested by the applicant
32unless the city, county, or city and county makes a written finding,
33based upon substantial evidence, of any of the following:

34(A) The concession or incentive is not required in order to
35provide for affordable housing costs, as defined in Section 50052.5
36of the Health and Safety Code, or for rents for the targeted units
37to be set as specified in subdivision (c).

38(B) The concession or incentive would have a specific adverse
39impact, as defined in paragraph (2) of subdivision (d) of Section
4065589.5, upon public health and safety or the physical environment
P7    1or on any real property that is listed in the California Register of
2Historical Resources and for which there is no feasible method to
3satisfactorily mitigate or avoid the specific adverse impact without
4rendering the development unaffordable to low- and
5moderate-income households.

6(C) The concession or incentive would be contrary to state or
7federal law.

8(2) The applicant shall receive the following number of
9 incentives or concessions:

10(A) One incentive or concession for projects that include at least
1110 percent of the total units for lower income households, at least
125 percent for very low income households, or at least 10 percent
13for persons and families of moderate income in a common interest
14development.

15(B) Two incentives or concessions for projects that include at
16least 20 percent of the total units for lower income households, at
17least 10 percent for very low income households, or at least 20
18percent for persons and families of moderate income in a common
19 interest development.

20(C) Three incentives or concessions for projects that include at
21least 30 percent of the total units for lower income households, at
22least 15 percent for very low income households, or at least 30
23percent for persons and families of moderate income in a common
24interest development.

25(3) The applicant may initiate judicial proceedings if the city,
26county, or city and county refuses to grant a requested density
27bonus, incentive, or concession. If a court finds that the refusal to
28grant a requested density bonus, incentive, or concession is in
29violation of this section, the court shall award the plaintiff
30reasonable attorney’s fees and costs of suit. Nothing in this
31subdivision shall be interpreted to require a local government to
32grant an incentive or concession that has a specific, adverse impact,
33as defined in paragraph (2) of subdivision (d) of Section 65589.5,
34upon health, safety, or the physical environment, and for which
35there is no feasible method to satisfactorily mitigate or avoid the
36specific adverse impact. Nothing in this subdivision shall be
37interpreted to require a local government to grant an incentive or
38concession that would have an adverse impact on any real property
39that is listed in the California Register of Historical Resources.
40The city, county, or city and county shall establish procedures for
P8    1carrying out this section, that shall include legislative body
2approval of the means of compliance with this section.

3(e) (1) In no case may a city, county, or city and county apply
4any development standard that will have the effect of physically
5precluding the construction of a development meeting the criteria
6of subdivision (b) at the densities or with the concessions or
7incentives permitted by this section. An applicant may submit to
8a city, county, or city and county a proposal for the waiver or
9reduction of development standards that will have the effect of
10physically precluding the construction of a development meeting
11the criteria of subdivision (b) at the densities or with the
12concessions or incentives permitted under this section, and may
13request a meeting with the city, county, or city and county. If a
14court finds that the refusal to grant a waiver or reduction of
15development standards is in violation of this section, the court
16shall award the plaintiff reasonable attorney’s fees and costs of
17suit. Nothing in this subdivision shall be interpreted to require a
18local government to waive or reduce development standards if the
19waiver or reduction would have a specific, adverse impact, as
20defined in paragraph (2) of subdivision (d) of Section 65589.5,
21upon health, safety, or the physical environment, and for which
22there is no feasible method to satisfactorily mitigate or avoid the
23specific adverse impact. Nothing in this subdivision shall be
24interpreted to require a local government to waive or reduce
25development standards that would have an adverse impact on any
26real property that is listed in the California Register of Historical
27Resources, or to grant any waiver or reduction that would be
28contrary to state or federal law.

29(2) A proposal for the waiver or reduction of development
30standards pursuant to this subdivision shall neither reduce nor
31increase the number of incentives or concessions to which the
32applicant is entitled pursuant to subdivision (d).

33(f) For the purposes of this chapter, “density bonus” means a
34density increase over the otherwise maximum allowable residential
35density as of the date of application by the applicant to the city,
36county, or city and county. The applicant may elect to accept a
37lesser percentage of density bonus. The amount of density bonus
38to which the applicant is entitled shall vary according to the amount
39by which the percentage of affordable housing units exceeds the
40percentage established in subdivision (b).

P9    1(1) For housing developments meeting the criteria of
2subparagraph (A) of paragraph (1) of subdivision (b), the density
3bonus shall be calculated as follows:


4

 

Percentage Low-Income UnitsPercentage Density Bonus
1020 
1121.5
1223 
1324.5
1426 
1527.5
1730.5
1832 
1933.5
2035 
P9   1721P9   3037P9   303P9   26

 

18(2) For housing developments meeting the criteria of
19subparagraph (B) of paragraph (1) of subdivision (b), the density
20bonus shall be calculated as follows:

 

Percentage Very Low Income UnitsPercentage Density Bonus
520 
622.5
725 
827.5
930 
1032.5
1135 
P9   3037P9   303P9   26

 

31(3) For housing developments meeting the criteria of
32subparagraph (C) of paragraph (1) of subdivision (b), the density
33bonus shall be 20 percent of the number of senior housing units.

34(4) For housing developments meeting the criteria of
35subparagraph (D) of paragraph (1) of subdivision (b), the density
36bonus shall be calculated as follows:

 

Percentage Moderate-Income UnitsPercentage Density Bonus
105
116
127
138
149
1510
1611
1712
1813
1914
2015
2116
2217
2318
2419
2520
2621
2722
2823
2924
3025
3126
3227
3328
3429
3530
3631
3732
3833
3934
4035
P9   303P9   26

 

31(5) All density calculations resulting in fractional units shall be
32rounded up to the next whole number. The granting of a density
33bonus shall not be interpreted, in and of itself, to require a general
34plan amendment, local coastal plan amendment, zoning change,
35or other discretionary approval.

36(g) (1) When an applicant for a tentative subdivision map,
37parcel map, or other residential development approval donates
38land to a city, county, or city and county in accordance with this
39subdivision, the applicant shall be entitled to a 15-percent increase
P11   1above the otherwise maximum allowable residential density for
2the entire development, as follows:

 

Percentage Very Low IncomePercentage Density Bonus
1015
1116
1217
1318
1419
1520
1621
1722
1823
1924
2025
2126
2227
2328
2429
2530
2631
2732
2833
2934
3035
P9   26

 

27(2) This increase shall be in addition to any increase in density
28mandated by subdivision (b), up to a maximum combined mandated
29density increase of 35 percent if an applicant seeks an increase
30pursuant to both this subdivision and subdivision (b). All density
31calculations resulting in fractional units shall be rounded up to the
32next whole number. Nothing in this subdivision shall be construed
33to enlarge or diminish the authority of a city, county, or city and
34county to require a developer to donate land as a condition of
35development. An applicant shall be eligible for the increased
36density bonus described in this subdivision if all of the following
37conditions are met:

38(A) The applicant donates and transfers the land no later than
39the date of approval of the final subdivision map, parcel map, or
40residential development application.

P12   1(B) The developable acreage and zoning classification of the
2land being transferred are sufficient to permit construction of units
3affordable to very low income households in an amount not less
4than 10 percent of the number of residential units of the proposed
5development.

6(C) The transferred land is at least one acre in size or of
7sufficient size to permit development of at least 40 units, has the
8appropriate general plan designation, is appropriately zoned with
9appropriate development standards for development at the density
10described in paragraph (3) of subdivision (c) of Section 65583.2,
11and is or will be served by adequate public facilities and
12infrastructure.

13(D) The transferred land shall have all of the permits and
14approvals, other than building permits, necessary for the
15development of the very low income housing units on the
16transferred land, not later than the date of approval of the final
17subdivision map, parcel map, or residential development
18application, except that the local government may subject the
19proposed development to subsequent design review to the extent
20 authorized by subdivision (i) of Section 65583.2 if the design is
21not reviewed by the local government prior to the time of transfer.

22(E) The transferred land and the affordable units shall be subject
23to a deed restriction ensuring continued affordability of the units
24consistent with paragraphs (1) and (2) of subdivision (c), which
25shall be recorded on the property at the time of the transfer.

26(F) The land is transferred to the local agency or to a housing
27developer approved by the local agency. The local agency may
28require the applicant to identify and transfer the land to the
29developer.

30(G) The transferred land shall be within the boundary of the
31proposed development or, if the local agency agrees, within
32one-quarter mile of the boundary of the proposed development.

33(H) A proposed source of funding for the very low income units
34shall be identified not later than the date of approval of the final
35subdivision map, parcel map, or residential development
36application.

37(h) (1) When an applicant proposes to construct a housing
38development that conforms to the requirements of subdivision (b)
39and includes a child care facility that will be located on the
P13   1premises of, as part of, or adjacent to, the project, the city, county,
2or city and county shall grant either of the following:

3(A) An additional density bonus that is an amount of square
4feet of residential space that is equal to or greater than the amount
5of square feet in the child care facility.

6(B) An additional concession or incentive that contributes
7 significantly to the economic feasibility of the construction of the
8child care facility.

9(2) The city, county, or city and county shall require, as a
10condition of approving the housing development, that the following
11occur:

12(A) The child care facility shall remain in operation for a period
13of time that is as long as or longer than the period of time during
14which the density bonus units are required to remain affordable
15pursuant to subdivision (c).

16(B) Of the children who attend the child care facility, the
17children of very low income households, lower income households,
18or families of moderate income shall equal a percentage that is
19equal to or greater than the percentage of dwelling units that are
20required for very low income households, lower income
21households, or families of moderate income pursuant to subdivision
22(b).

23(3) Notwithstanding any requirement of this subdivision, a city,
24county, or city and county shall not be required to provide a density
25bonus or concession for a child care facility if it finds, based upon
26substantial evidence, that the community has adequate child care
27facilities.

28(4) “Child care facility,” as used in this section, means a child
29day care facility other than a family day care home, including, but
30not limited to, infant centers, preschools, extended day care
31facilities, and schoolage child care centers.

32(i) “Housing development,” as used in this section, means a
33development project for five or more residential units. For the
34purposes of this section, “housing development” also includes a
35subdivision or common interest development, as defined in Section
364100 of the Civil Code, approved by a city, county, or city and
37county and consists of residential units or unimproved residential
38lots and either a project to substantially rehabilitate and convert
39an existing commercial building to residential use or the substantial
40rehabilitation of an existing multifamily dwelling, as defined in
P14   1subdivision (d) of Section 65863.4, where the result of the
2rehabilitation would be a net increase in available residential units.
3For the purpose of calculating a density bonus, the residential units
4shall be on contiguous sites that are the subject of one development
5application, but do not have to be based upon individual
6subdivision maps or parcels. The density bonus shall be permitted
7in geographic areas of the housing development other than the
8areas where the units for the lower income households are located.

9(j) (1) The granting of a concession or incentive shall not be
10interpreted, in and of itself, to require a general plan amendment,
11local coastal plan amendment, zoning change, or other discretionary
12approval. This provision is declaratory of existing law.

13(2) Except as provided in subdivisions (d) and (e), the granting
14of a density bonus shall not be interpreted to require the waiver of
15a local ordinance or provisions of a local ordinance unrelated to
16development standards.

17(k) For the purposes of this chapter, concession or incentive
18means any of the following:

19(1) A reduction in site development standards or a modification
20of zoning code requirements or architectural design requirements
21that exceed the minimum building standards approved by the
22California Building Standards Commission as provided in Part 2.5
23(commencing with Section 18901) of Division 13 of the Health
24and Safety Code, including, but not limited to, a reduction in
25setback and square footage requirements and in the ratio of
26vehicular parking spaces that would otherwise be required that
27results in identifiable, financially sufficient, and actual cost
28reductions.

29(2) Approval of mixed-use zoning in conjunction with the
30housing project if commercial, office, industrial, or other land uses
31will reduce the cost of the housing development and if the
32commercial, office, industrial, or other land uses are compatible
33with the housing project and the existing or planned development
34in the area where the proposed housing project will be located.

35(3) Other regulatory incentives or concessions proposed by the
36developer or the city, county, or city and county that result in
37identifiable, financially sufficient, and actual cost reductions.

38(l) Subdivision (k) does not limit or require the provision of
39direct financial incentives for the housing development, including
P15   1the provision of publicly owned land, by the city, county, or city
2and county, or the waiver of fees or dedication requirements.

3(m) This section shall not be construed to supersede or in any
4way alter or lessen the effect or application of the California
5Coastal Act of 1976 (Division 20 (commencing with Section
630000) of the Public Resources Code).

7(n) If permitted by local ordinance, nothing in this section shall
8be construed to prohibit a city, county, or city and county from
9granting a density bonus greater than what is described in this
10 section for a development that meets the requirements of this
11section or from granting a proportionately lower density bonus
12than what is required by this section for developments that do not
13meet the requirements of this section.

14(o) For purposes of this section, the following definitions shall
15apply:

16(1) “Development standard” includes a site or construction
17condition, including, but not limited to, a height limitation, a
18setback requirement, a floor area ratio, an onsite open-space
19requirement, or a parking ratio that applies to a residential
20development pursuant to any ordinance, general plan element,
21specific plan, charter, or other local condition, law, policy,
22resolution, or regulation.

23(2) “Maximum allowable residential density” means the density
24allowed under the zoning ordinance and land use element of the
25 general plan, or if a range of density is permitted, means the
26maximum allowable density for the specific zoning range and land
27use element of the general plan applicable to the project. Where
28the density allowed under the zoning ordinance is inconsistent
29with the density allowed under the land use element of the general
30plan, the general plan density shall prevail.

31(p) (1) Upon the request of the developer, no city, county, or
32city and county shall require a vehicular parking ratio, inclusive
33of handicapped and guest parking, of a development meeting the
34criteria of subdivision (b), that exceeds the following ratios:

35(A) Zero to one bedroom: one onsite parking space.

36(B) Two to three bedrooms: two onsite parking spaces.

37(C) Four and more bedrooms: two and one-half parking spaces.

38(2) If the total number of parking spaces required for a
39development is other than a whole number, the number shall be
40rounded up to the next whole number. For purposes of this
P16   1subdivision, a development may provide “onsite parking” through
2tandem parking or uncovered parking, but not through onstreet
3parking.

4(3) This subdivision shall apply to a development that meets
5the requirements of subdivision (b) but only at the request of the
6applicant. An applicant may request parking incentives or
7concessions beyond those provided in this subdivision pursuant
8to subdivision (d).

9

SEC. 2.  

Section 65915.5 of the Government Code is amended
10to read:

11

65915.5.  

(a) When an applicant for approval to convert
12apartments to a condominium project agrees to provide at least 33
13percent of the total units of the proposed condominium project to
14persons and families of low or moderate income as defined in
15Section 50093 of the Health and Safety Code, or 15 percent of the
16total units of the proposed condominium project to lower income
17households as defined in Section 50079.5 of the Health and Safety
18Code, and agrees to pay for the reasonably necessary administrative
19costs incurred by a city, county, or city and county pursuant to this
20section, the city, county, or city and county shall either (1) grant
21a density bonus or (2) provide other incentives of equivalent
22financial value. A city, county, or city and county may place such
23reasonable conditions on the granting of a density bonus or other
24incentives of equivalent financial value as it finds appropriate,
25including, but not limited to, conditions which assure continued
26affordability of units to subsequent purchasers who are persons
27and families of low and moderate income or lower income
28households.

29(b) For purposes of this section, “density bonus” means an
30increase in units of 25 percent over the number of apartments, to
31be provided within the existing structure or structures proposed
32for conversion.

33(c) For purposes of this section, “other incentives of equivalent
34financial value” shall not be construed to require a city, county,
35or city and county to provide cash transfer payments or other
36monetary compensation but may include the reduction or waiver
37of requirements which the city, county, or city and county might
38otherwise apply as conditions of conversion approval.

39(d) An applicant for approval to convert apartments to a
40condominium project may submit to a city, county, or city and
P17   1county a preliminary proposal pursuant to this section prior to the
2submittal of any formal requests for subdivision map approvals.
3The city, county, or city and county shall, within 90 days of receipt
4of a written proposal, notify the applicant in writing of the manner
5in which it will comply with this section. The city, county, or city
6and county shall establish procedures for carrying out this section,
7which shall include legislative body approval of the means of
8compliance with this section.

9(e) Nothing in this section shall be construed to require a city,
10county, or city and county to approve a proposal to convert
11apartments to condominiums.

12(f) An applicant shall be ineligible for a density bonus or other
13incentives under this section if the apartments proposed for
14conversion constitute a housing development for which a density
15bonus or other incentives were provided under Section 65915.

16(g) An applicant shall be ineligible for a density bonus or any
17other incentives or concessions under this section if the
18condominium project is proposed on any property that includes a
19parcel or parcels on which rental dwelling units are or, if the
20dwelling units have been vacated or demolished in the five-year
21period preceding the application, have been subject to a recorded
22covenant, ordinance, or law that restricts rents to levels affordable
23to persons and families of lower or very low income; subject to
24any other form of rent or price control through a public entity’s
25valid exercise of its police power; or occupied by lower or very
26low income households, unless the proposed condominium project
27replaces those units, as defined in subparagraph (B) of paragraph
28(3) of subdivision (c) of Section 65915, and either of the following
29applies:

30(1) The proposed condominiumbegin delete project includes the additional
31required set aside ofend delete
begin insert project, inclusive of the units replaced
32pursuant to subparagraph (B) of paragraph (3) of subdivision (c)
33of Section 65915, containsend insert
affordable units at the percentages set
34forth in subdivision (a).

35(2) Each unit in the development, exclusive of a manager’s unit
36or units, is affordable to, and occupied by, either a lower or very
37low income household.

begin insert

38(h) Subdivision (g) does not apply to an applicant seeking a
39density bonus for a proposed housing development if their
P18   1application was submitted to, or processed by, a city, county, or
2city and county before January 1, 2015.

end insert


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