Amended in Assembly June 2, 2015

Amended in Assembly March 26, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 744


Introduced by Assembly Member Chau

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(Principal coauthor: Assembly Member Gonzalez)

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February 25, 2015


An act to amend Section 65915 of the Government Code, relating to housing.

LEGISLATIVE COUNSEL’S DIGEST

AB 744, as amended, Chau. Planning and zoning: density bonuses.

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 55 years or longer, as specified, of all very low and low-income units that qualified an applicant for a density bonus. Existing law prohibits a city, county, or city and county from requiring a vehicular parking ratio for a housing development that meets these criteria in excess of specified ratios. This prohibition applies only at the request of the developer and specifies that the developer may request additional parking incentives or concessions.

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This bill would additionally prohibit, at the request of the developer, a city, county, or city and county from imposing a minimum onsite parking requirement on a development that is located within one-half mile of a major transit stop, is a senior housing development, or is a special needs housing development, as those terms are defined. The bill would specify that a city, county, or city and county may impose a maximum onsite parking requirement for a development.

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This bill would, notwithstanding the above-described provisions, additionally prohibit, at the request of the developer, a city, county, or city and county from imposing a vehicular parking ratio in excess of 0.5 spaces per bedroom on a development that includes the maximum percentage of low- and very low income units, as specified, and is located within one-half mile of a major transit stop, as defined, and there is unobstructed access to the transit stop from the development. The bill would also prohibit, at the request of the developer, a city, county, or city and county from imposing a vehicular parking ratio in excess of specified amounts per unit on a development that consists solely of units with an affordable housing cost to lower income households, as specified, if the development is within one-half mile of a major transit stop and there is unobstructed access to the transit stop from the development, is a for-rent housing development for individuals that are 62 years of age or older, or is a special needs housing development, as those terms are defined. The bill would make findings and declarations in this regard, including that this constitutes a matter of statewide concern and is not a municipal affair.

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By imposing additional duties on local governments in awarding density bonuses, this bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.

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

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

P3    1begin insert

begin insertSECTION 1.end insert  

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The Legislature finds and declares all of the
2following:

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3(a) Having a healthy housing market that provides an adequate
4supply of homes that are affordable to Californians at all income
5levels is critical to the economic prosperity and quality of life in
6the state.

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7(b) There exists a severe shortage of affordable housing,
8especially for persons and families of extremely low, very low and
9low income, and there is an immediate need to encourage the
10development of new housing, not only through the provision of
11financial assistance but also through reforms to regulation.

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12(c) Affordable housing is expensive to build in California.

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13(d) The cost of building affordable housing in California is
14impacted by local opposition, changes imposed by local design
15and review, and requirements for on-site parking.

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16(e) The average construction cost per space, excluding land
17cost, in a parking structure in the United States is about $24,000
18for aboveground parking and $34,000 for underground parking.
19In an affordable housing project with a fixed budget, every $24,000
20spent on a required parking space is $24,000 less to spend on
21housing.

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22(f) The biggest single determinant of vehicle miles traveled and
23therefore greenhouse gas emissions is ownership of a private
24vehicle.

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25(g) A review of developments funded through the Department
26of Housing and Community Development’s Transit-Oriented
27Development Implementation Program (TOD program) shows
28that lower Income households drive 25 to 30 percent fewer miles
29when living within one-half mile of transit than those living in
30non-TOD program areas. When living within one-quarter mile of
31frequent transit, they drove nearly 50 percent less.

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32(h) When cities require off-street parking with all new residential
33construction, they shift what should be the cost of driving, the cost
34of parking a car, into the cost of housing, which artificially
35increases the cost of housing.

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36(i) Increases in public transportation and shared mobility
37options and the development of more walkable and bikeable
38neighborhoods reduce the demand for parking.

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P4    1(j) Consistent with Chapter 488 of the Statues of 2006 (AB 32)
2and Chapter 728 of the Statutes of 2008 (SB 375), it is state policy
3to promote transit-oriented infill development to reduce greenhouse
4gas emissions.

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5(k) The high cost of the land and improvements required to
6provide parking significantly increases the cost of transit-oriented
7 development, making lower cost and affordable housing
8development financially infeasible and hindering the goals of SB
9375.

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10(l) Eliminating minimum parking requirements will allow the
11limited funding available for affordable housing to support more
12housing for more Californians. A given housing subsidy fund can
13benefit about 6.5 times more households with no parking spaces
14than households with 2 spaces per unit.

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15(m) Minimum parking requirements provide large subsidies for
16parking, which in turn encourage more people to drive cars.

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17(n) Minimum parking requirements create a barrier to effective
18use of the density bonus law contained in Section 65915 of the
19Government Code. The parking required for the extra units adds
20construction and land costs that may be prohibitive and requires
21vacant land that may be unavailable, especially in locations near
22transit.

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23(o) Increasing the supply of affordable housing near transit
24helps achieve deeper affordability through reduced transportation
25costs, in addition to reduced housing costs.

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26(p) Governmental parking requirements for infill and
27transit-oriented development reduce the viability of transit by
28limiting the number of households or workers near transit,
29increasing walking distances, and degrading the pedestrian
30environment.

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31(q) Reducing or eliminating minimum parking requirements for
32infill and transit-oriented development and allowing builders and
33the market to decide how much parking is needed can achieve all
34of the following:

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35(1) Ensure sufficient amounts of parking at almost all times.

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36(2) Reduce the cost of development and increase the number of
37transit-accessible and affordable housing units.

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38(3) Allow for more effective use of the density bonus law.

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39(4) Increase density in areas with the most housing demand,
40and improve the viability of developing alternate modes of
P5    1transportation, such as public transit, ridesharing, biking, and
2walking.

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3(5) Reduce greenhouse gas emissions and vehicle miles traveled
4by removing an incentive to drive.

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5(r) It is the intent of the Legislature to reduce the cost of
6development by eliminating excessive minimum parking
7requirements for transit-oriented developments that includes
8affordable housing, senior housing, and special needs housing.

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9(s) The Legislature further declares that the need to address
10infill development and excessive parking requirements is a matter
11of statewide concern and is not a municipal affair as that term is
12used in Section 5 of Article XI of the California Constitution.
13Therefore, this act shall apply to all cities, including charter cities.

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14

begin deleteSECTION 1.end delete
15begin insert SEC. 2.end insert  

Section 65915 of the Government Code is amended
16to read:

17

65915.  

(a) When an applicant seeks a density bonus for a
18housing development within, or for the donation of land for housing
19within, the jurisdiction of a city, county, or city and county, that
20local government shall provide the applicant with incentives or
21concessions for the production of housing units and child care
22facilities as prescribed in this section. All cities, counties, or cities
23and counties shall adopt an ordinance that specifies how
24compliance with this section will be implemented. Failure to adopt
25an ordinance shall not relieve a city, county, or city and county
26from complying with this section.

27(b) (1) A city, county, or city and county shall grant one density
28 bonus, the amount of which shall be as specified in subdivision
29(f), and incentives or concessions, as described in subdivision (d),
30when an applicant for a housing development seeks and agrees to
31construct a housing development, excluding any units permitted
32by the density bonus awarded pursuant to this section, that will
33contain at least any one of the following:

34(A) Ten percent of the total units of a housing development for
35lower income households, as defined in Section 50079.5 of the
36Health and Safety Code.

37(B) Five percent of the total units of a housing development for
38very low income households, as defined in Section 50105 of the
39Health and Safety Code.

P6    1(C) A senior citizen housing development, as defined in Sections
251.3 and 51.12 of the Civil Code, or a mobilehome park that limits
3residency based on age requirements for housing for older persons
4pursuant to Section 798.76 or 799.5 of the Civil Code.

5(D) Ten percent of the total dwelling units in a common interest
6development, as defined in Section 4100 of the Civil Code, for
7persons and families of moderate income, as defined in Section
850093 of the Health and Safety Code, provided that all units in the
9development are offered to the public for purchase.

10(2) For purposes of calculating the amount of the density bonus
11pursuant to subdivision (f), an applicant who requests a density
12bonus pursuant to this subdivision shall elect whether the bonus
13shall be awarded on the basis of subparagraph (A), (B), (C), or (D)
14of paragraph (1).

15(3) For the purposes of this section, “total units” or “total
16dwelling units” does not include units added by a density bonus
17awarded pursuant to this section or any local law granting a greater
18density bonus.

19(c) (1) An applicant shall agree to, and the city, county, or city
20and county shall ensure, the continued affordability of all very low
21and low-income rental units that qualified the applicant for the
22award of the density bonus for 55 years or a longer period of time
23if required by the construction or mortgage financing assistance
24program, mortgage insurance program, or rental subsidy program.
25Rents for the lower income density bonus units shall be set at an
26affordable rent as defined in Section 50053 of the Health and Safety
27Code.

28(2) An applicant shall agree to, and the city, county, or city and
29county shall ensure that, the initial occupant of all for-sale units
30that qualified the applicant for the award of the density bonus are
31persons and families of very low, low, or moderate income, as
32required, and that the units are offered at an affordable housing
33cost, as that cost is defined in Section 50052.5 of the Health and
34Safety Code. The local government shall enforce an equity sharing
35agreement, unless it is in conflict with the requirements of another
36public funding source or law. The following apply to the equity
37sharing agreement:

38(A) Upon resale, the seller of the unit shall retain the value of
39any improvements, the downpayment, and the seller’s proportionate
40share of appreciation. The local government shall recapture any
P7    1initial subsidy, as defined in subparagraph (B), and its proportionate
2share of appreciation, as defined in subparagraph (C), which
3amount shall be used within five years for any of the purposes
4described in subdivision (e) of Section 33334.2 of the Health and
5Safety Code that promote home ownership.

6(B) For purposes of this subdivision, the local government’s
7initial subsidy shall be equal to the fair market value of the home
8at the time of initial sale minus the initial sale price to the
9moderate-income household, plus the amount of any downpayment
10assistance or mortgage assistance. If upon resale the market value
11is lower than the initial market value, then the value at the time of
12the resale shall be used as the initial market value.

13(C) For purposes of this subdivision, the local government’s
14proportionate share of appreciation shall be equal to the ratio of
15the local government’s initial subsidy to the fair market value of
16the home at the time of initial sale.

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

29(i) The proposed housing development, inclusive of the units
30replaced pursuant to this paragraph, contains affordable units at
31the percentages set forth in subdivision (b).

32(ii) Each unit in the development, exclusive of a manager’s unit
33or units, is affordable to, and occupied by, either a lower or very
34low income household.

35(B) For the purposes of this paragraph, “replace” shall mean
36either of the following:

37(i) If any dwelling units described in subparagraph (A) are
38occupied on the date of application, the proposed housing
39development shall provide at least the same number of units of
40equivalent size or type, or both, to be made available at affordable
P8    1rent or affordable housing cost to, and occupied by, persons and
2families in the same or lower income category as those households
3in occupancy. For unoccupied dwelling units described in
4subparagraph (A) in a development with occupied units, the
5proposed housing development shall provide units of equivalent
6size or type, or both, to be made available at affordable rent or
7affordable housing cost to, and occupied by, persons and families
8in the same or lower income category in the same proportion of
9affordability as the occupied units. All replacement calculations
10resulting in fractional units shall be rounded up to the next whole
11number. If the replacement units will be rental dwelling units,
12these units shall be subject to a recorded affordability restriction
13for at least 55 years. If the proposed development is for-sale units,
14the units replaced shall be subject to paragraph (2).

15(ii) If all dwelling units described in subparagraph (A) have
16been vacated or demolished within the five-year period preceding
17the application, the proposed housing development shall provide
18at least the same number of units of equivalent size or type, or
19both, as existed at the highpoint of those units in the five-year
20period preceding the application to be made available at affordable
21rent or affordable housing cost to, and occupied by, persons and
22families in the same or lower income category as those persons
23and families in occupancy at that time, if known. If the incomes
24of the persons and families in occupancy at the highpoint is not
25known, then one-half of the required units shall be made available
26at affordable rent or affordable housing cost to, and occupied by,
27very low income persons and families and one-half of the required
28units shall be made available for rent at affordable housing costs
29 to, and occupied by, low-income persons and families. All
30replacement calculations resulting in fractional units shall be
31rounded up to the next whole number. If the replacement units will
32be rental dwelling units, these units shall be subject to a recorded
33affordability restriction for at least 55 years. If the proposed
34development is for-sale units, the units replaced shall be subject
35to paragraph (2).

36(C) Paragraph (3) of subdivision (c) does not apply to an
37applicant seeking a density bonus for a proposed housing
38development if his or her application was submitted to, or
39processed by, a city, county, or city and county before January 1,
402015.

P9    1(d) (1) An applicant for a density bonus pursuant to subdivision
2(b) may submit to a city, county, or city and county a proposal for
3the specific incentives or concessions that the applicant requests
4pursuant to this section, and may request a meeting with the city,
5county, or city and county. The city, county, or city and county
6shall grant the concession or incentive requested by the applicant
7unless the city, county, or city and county makes a written finding,
8based upon substantial evidence, of any of the following:

9(A) The concession or incentive is not required in order to
10provide for affordable housing costs, as defined in Section 50052.5
11of the Health and Safety Code, or for rents for the targeted units
12to be set as specified in subdivision (c).

13(B) The concession or incentive would have a specific adverse
14impact, as defined in paragraph (2) of subdivision (d) of Section
1565589.5, upon public health and safety or the physical environment
16or on any real property that is listed in the California Register of
17Historical Resources and for which there is no feasible method to
18satisfactorily mitigate or avoid the specific adverse impact without
19rendering the development unaffordable to low- and
20moderate-income households.

21(C) The concession or incentive would be contrary to state or
22federal law.

23(2) The applicant shall receive the following number of
24incentives or concessions:

25(A) One incentive or concession for projects that include at least
2610 percent of the total units for lower income households, at least
275 percent for very low income households, or at least 10 percent
28for persons and families of moderate income in a common interest
29development.

30(B) Two incentives or concessions for projects that include at
31least 20 percent of the total units for lower income households, at
32least 10 percent for very low income households, or at least 20
33percent for persons and families of moderate income in a common
34interest development.

35(C) Three incentives or concessions for projects that include at
36least 30 percent of the total units for lower income households, at
37least 15 percent for very low income households, or at least 30
38percent for persons and families of moderate income in a common
39interest development.

P10   1(3) The applicant may initiate judicial proceedings if the city,
2county, or city and county refuses to grant a requested density
3bonus, incentive, or concession. If a court finds that the refusal to
4grant a requested density bonus, incentive, or concession is in
5violation of this section, the court shall award the plaintiff
6reasonable attorney’s fees and costs of suit. Nothing in this
7subdivision shall be interpreted to require a local government to
8grant an incentive or concession that has a specific, adverse impact,
9as defined in paragraph (2) of subdivision (d) of Section 65589.5,
10upon health, safety, or the physical environment, and for which
11there is no feasible method to satisfactorily mitigate or avoid the
12specific adverse impact. Nothing in this subdivision shall be
13interpreted to require a local government to grant an incentive or
14concession that would have an adverse impact on any real property
15that is listed in the California Register of Historical Resources.
16The city, county, or city and county shall establish procedures for
17carrying out this section, that shall include legislative body
18approval of the means of compliance with this section.

19(e) (1) In no case may a city, county, or city and county apply
20any development standard that will have the effect of physically
21precluding the construction of a development meeting the criteria
22of subdivision (b) at the densities or with the concessions or
23incentives permitted by this section. An applicant may submit to
24a city, county, or city and county a proposal for the waiver or
25reduction of development standards that will have the effect of
26physically precluding the construction of a development meeting
27the criteria of subdivision (b) at the densities or with the
28concessions or incentives permitted under this section, and may
29request a meeting with the city, county, or city and county. If a
30court finds that the refusal to grant a waiver or reduction of
31development standards is in violation of this section, the court
32shall award the plaintiff reasonable attorney’s fees and costs of
33suit. Nothing in this subdivision shall be interpreted to require a
34local government to waive or reduce development standards if the
35waiver or reduction would have a specific, adverse impact, as
36defined in paragraph (2) of subdivision (d) of Section 65589.5,
37upon health, safety, or the physical environment, and for which
38there is no feasible method to satisfactorily mitigate or avoid the
39specific adverse impact. Nothing in this subdivision shall be
40interpreted to require a local government to waive or reduce
P11   1development standards that would have an adverse impact on any
2real property that is listed in the California Register of Historical
3Resources, or to grant any waiver or reduction that would be
4contrary to state or federal law.

5(2) A proposal for the waiver or reduction of development
6standards pursuant to this subdivision shall neither reduce nor
7increase the number of incentives or concessions to which the
8applicant is entitled pursuant to subdivision (d).

9(f) For the purposes of this chapter, “density bonus” means a
10density increase over the otherwise maximum allowable residential
11density as of the date of application by the applicant to the city,
12county, or city and county. The applicant may elect to accept a
13lesser percentage of density bonus. The amount of density bonus
14to which the applicant is entitled shall vary according to the amount
15by which the percentage of affordable housing units exceeds the
16percentage established in subdivision (b).

17(1) For housing developments meeting the criteria of
18subparagraph (A) of paragraph (1) of subdivision (b), the density
19bonus shall be calculated as follows:


20

 

Percentage Low-Income UnitsPercentage Density Bonus
1020 
1121.5
1223 
1324.5
1426 
1527.5
1730.5
1832 
1933.5
2035 
P11  3337P11   613P11   620P11   3

 

34(2) For housing developments meeting the criteria of
35subparagraph (B) of paragraph (1) of subdivision (b), the density
36bonus shall be calculated as follows:

 

Percentage Very Low Income UnitsPercentage Density Bonus
520 
622.5
725 
827.5
930 
1032.5
1135 
P11   613P11   620P11   3

 

7(3) For housing developments meeting the criteria of
8subparagraph (C) of paragraph (1) of subdivision (b), the density
9bonus shall be 20 percent of the number of senior housing units.

10(4) For housing developments meeting the criteria of
11subparagraph (D) of paragraph (1) of subdivision (b), the density
12bonus 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
P11   620P11   3

 

7(5) All densitybegin delete calculations, including, but not limited to,
8maximum allowable density, total affordable units, and the total
9amount of density bonus,end delete
begin insert calculationsend insert resulting in fractional units
10shall be rounded up to the next whole number. The granting of a
11density bonus shall not be interpreted, in and of itself, to require
12a general plan amendment, local coastal plan amendment, zoning
13change, or other discretionary approval.

14(g) (1) When an applicant for a tentative subdivision map,
15parcel map, or other residential development approval donates
16land to a city, county, or city and county in accordance with this
17subdivision, the applicant shall be entitled to a 15-percent increase
18above the otherwise maximum allowable residential density for
19the 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
P11   3

 

4(2) This increase shall be in addition to any increase in density
5mandated by subdivision (b), up to a maximum combined mandated
6density increase of 35 percent if an applicant seeks an increase
7pursuant to both this subdivision and subdivision (b). All density
8begin delete calculations, including, but not limited to, maximum allowable
9density, total affordable units, and the total amount of density
10bonus,end delete
begin insert calculationsend insert resulting in fractional units shall be rounded
11up to the next whole number. Nothing in this subdivision shall be
12construed to enlarge or diminish the authority of a city, county, or
13city and county to require a developer to donate land as a condition
14of development. An applicant shall be eligible for the increased
15density bonus described in this subdivision if all of the following
16conditions are met:

17(A) The applicant donates and transfers the land no later than
18the date of approval of the final subdivision map, parcel map, or
19residential development application.

20(B) The developable acreage and zoning classification of the
21land being transferred are sufficient to permit construction of units
22affordable to very low income households in an amount not less
23than 10 percent of the number of residential units of the proposed
24development.

25(C) The transferred land is at least one acre in size or of
26sufficient size to permit development of at least 40 units, has the
27appropriate general plan designation, is appropriately zoned with
28appropriate development standards for development at the density
29described in paragraph (3) of subdivision (c) of Section 65583.2,
30and is or will be served by adequate public facilities and
31infrastructure.

32(D) The transferred land shall have all of the permits and
33approvals, other than building permits, necessary for the
34development of the very low income housing units on the
35transferred land, not later than the date of approval of the final
36subdivision map, parcel map, or residential development
37application, except that the local government may subject the
38proposed development to subsequent design review to the extent
39authorized by subdivision (i) of Section 65583.2 if the design is
40not reviewed by the local government prior to the time of transfer.

P15   1(E) The transferred land and the affordable units shall be subject
2to a deed restriction ensuring continued affordability of the units
3consistent with paragraphs (1) and (2) of subdivision (c), which
4shall be recorded on the property at the time of the transfer.

5(F) The land is transferred to the local agency or to a housing
6developer approved by the local agency. The local agency may
7require the applicant to identify and transfer the land to the
8developer.

9(G) The transferred land shall be within the boundary of the
10proposed development or, if the local agency agrees, within
11one-quarter mile of the boundary of the proposed development.

12(H) A proposed source of funding for the very low income units
13shall be identified not later than the date of approval of the final
14subdivision map, parcel map, or residential development
15application.

16(h) (1) When an applicant proposes to construct a housing
17development that conforms to the requirements of subdivision (b)
18and includes a child care facility that will be located on the
19premises of, as part of, or adjacent to, the project, the city, county,
20or city and county shall grant either of the following:

21(A) An additional density bonus that is an amount of square
22feet of residential space that is equal to or greater than the amount
23of square feet in the child care facility.

24(B) An additional concession or incentive that contributes
25significantly to the economic feasibility of the construction of the
26child care facility.

27(2) The city, county, or city and county shall require, as a
28condition of approving the housing development, that the following
29occur:

30(A) The child care facility shall remain in operation for a period
31of time that is as long as or longer than the period of time during
32which the density bonus units are required to remain affordable
33pursuant to subdivision (c).

34(B) Of the children who attend the child care facility, the
35children of very low income households, lower income households,
36or families of moderate income shall equal a percentage that is
37equal to or greater than the percentage of dwelling units that are
38required for very low income households, lower income
39households, or families of moderate income pursuant to subdivision
40(b).

P16   1(3) Notwithstanding any requirement of this subdivision, a city,
2county, or city and county shall not be required to provide a density
3bonus or concession for a child care facility if it finds, based upon
4substantial evidence, that the community has adequate child care
5facilities.

6(4) “Child care facility,” as used in this section, means a child
7day care facility other than a family day care home, including, but
8not limited to, infant centers, preschools, extended day care
9facilities, and schoolage child care centers.

10(i) “Housing development,” as used in this section, means a
11development project for five or more residential units. For the
12purposes of this section, “housing development” also includes a
13subdivision or common interest development, as defined in Section
144100 of the Civil Code, approved by a city, county, or city and
15county and consists of residential units or unimproved residential
16lots and either a project to substantially rehabilitate and convert
17an existing commercial building to residential use or the substantial
18rehabilitation of an existing multifamily dwelling, as defined in
19subdivision (d) of Section 65863.4, where the result of the
20rehabilitation would be a net increase in available residential units.
21For the purpose of calculating a density bonus, the residential units
22shall be on contiguous sites that are the subject of one development
23application, but do not have to be based upon individual
24subdivision maps or parcels. The density bonus shall be permitted
25in geographic areas of the housing development other than the
26areas where the units for the lower income households are located.

27(j) (1) The granting of a concession or incentive shall not be
28interpreted, in and of itself, to require a general plan amendment,
29local coastal plan amendment, zoning change, or other discretionary
30approval. This provision is declaratory of existing law.

31(2) Except as provided in subdivisions (d) and (e), the granting
32of a density bonus shall not be interpreted to require the waiver of
33a local ordinance or provisions of a local ordinance unrelated to
34development standards.

35(k) For the purposes of this chapter, concession or incentive
36means any of the following:

37(1) A reduction in site development standards or a modification
38of zoning code requirements or architectural design requirements
39that exceed the minimum building standards approved by the
40California Building Standards Commission as provided in Part 2.5
P17   1(commencing with Section 18901) of Division 13 of the Health
2and Safety Code, including, but not limited to, a reduction in
3setback and square footage requirements and in the ratio of
4vehicular parking spaces that would otherwise be required that
5results in identifiable, financially sufficient, and actual cost
6reductions.

7(2) Approval of mixed-use zoning in conjunction with the
8housing project if commercial, office, industrial, or other land uses
9will reduce the cost of the housing development and if the
10commercial, office, industrial, or other land uses are compatible
11with the housing project and the existing or planned development
12in the area where the proposed housing project will be located.

13(3) Other regulatory incentives or concessions proposed by the
14developer or the city, county, or city and county that result in
15identifiable, financially sufficient, and actual cost reductions.

16(l) Subdivision (k) does not limit or require the provision of
17direct financial incentives for the housing development, including
18the provision of publicly owned land, by the city, county, or city
19and county, or the waiver of fees or dedication requirements.

20(m) This section does not supersede or in any way alter or lessen
21the effect or application of the California Coastal Act of 1976
22(Division 20 (commencing with Section 30000) of the Public
23Resources Code).

24(n) If permitted by local ordinance, nothing in this section shall
25be construed to prohibit a city, county, or city and county from
26granting a density bonus greater than what is described in this
27 section for a development that meets the requirements of this
28section or from granting a proportionately lower density bonus
29than what is required by this section for developments that do not
30meet the requirements of this section.

31(o) For purposes of this section, the following definitions shall
32apply:

33(1) “Development standard” includes a site or construction
34condition, including, but not limited to, a height limitation, a
35setback requirement, a floor area ratio, an onsite open-space
36requirement, or a parking ratio that applies to a residential
37development pursuant to any ordinance, general plan element,
38specific plan, charter, or other local condition, law, policy,
39resolution, or regulation.

P18   1(2) “Maximum allowable residential density” means the density
2allowed under the zoning ordinance and land use element of the
3 general plan, or if a range of density is permitted, means the
4maximum allowable density for the specific zoning range and land
5use element of the general plan applicable to the project. Where
6the density allowed under the zoning ordinance is inconsistent
7with the density allowed under the land use element of the general
8plan, the general plan density shall prevail.

9(p) (1) begin deleteUpon the request of the developer,end deletebegin insert Except as provided
10in paragraphs (2) and (3),end insert
a city, county, or city and county shall
11not require a vehicular parking ratio, inclusive of handicapped and
12guest parking, of a development meeting the criteria of subdivision
13(b), that exceeds the following ratios:

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

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

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

begin delete

17(2) If the total number of parking spaces required for a
18development is other than a whole number, the number shall be
19rounded up to the next whole number. For purposes of this
20subdivision, a development may provide “onsite parking” through
21tandem parking or uncovered parking, but not through onstreet
22parking.

23(3) Upon the request of the developer, a city, county, or city
24and county shall not impose a minimum onsite parking requirement
25on a development that meets any of the following criteria:

26(A) The development is located within one-half mile of a major
27transit stop. For the purposes of this subparagraph, “major transit
28stop” has the same meaning as that term is defined in Section
2921064.3 of the Public Resources Code and also includes a major
30transit stop that is included in the applicable regional transportation
31plan. A project shall be considered to be within one-half mile of
32a major transit stop if all parcels within the project have no more
33than 25 percent of their area farther than one-half mile of the major
34transit stop and if not more than 10 percent of the residential units
35or 100 units, whichever is fewer, in the project are farther than
36one-half mile from the major transit stop.

37(B) The development is a senior citizen housing development,
38as defined in Sections 51.3 and 51.12 of the Civil Code.

end delete
begin insert

39(2) Notwithstanding paragraph (1), if a development includes
40the maximum percentage of low- and very low income units
P19   1provided for in paragraphs (1) and (2) of subdivision (f) and is
2located within one-half mile of a major transit stop, as defined in
3subdivision (b) of Section 21155 of the Public Resources Code,
4and there is unobstructed access to the major transit stop from the
5development, then, upon the request of the developer, a city, county,
6or city and county shall not impose a vehicular parking ratio that
7exceeds 0.5 spaces per bedroom.

end insert
begin insert

8(3) Notwithstanding paragraph (1), if a development consists
9solely of rental units, exclusive of a manager’s unit or units, with
10an affordable housing cost to lower income families, as provided
11in Section 50052.5 of the Health and Safety Code, then, upon the
12request of the developer, a city, county, or city and county shall
13not impose a minimum vehicular parking requirement, if the
14development meets any of the following criteria:

end insert
begin insert

15(A) The development is located within one-half mile of a major
16transit stop, as defined in subdivision (b) of Section 21155 of the
17Public Resources Code, and there is unobstructed access to the
18major transit stop from the development.

end insert
begin insert

19(B) The development is a for-rent housing development for
20individuals who are 62 years of age or older.

end insert

21(C) The development is a special needsbegin insert housingend insert development,
22as defined in Section 51312 of the Health and Safety Code.

begin delete

23(4) Notwithstanding paragraph (3), this subdivision does not
24preclude a city, county, or city and county from imposing a
25maximum onsite parking requirement for a development.

end delete
begin insert

26(4) If the total number of parking spaces required for a
27development is other than a whole number, the number shall be
28rounded up to the next whole number. For purposes of this
29subdivision, a development may provide on-site parking through
30tandem parking or uncovered parking, but not through on-street
31parking.

end insert

32(5) This subdivision shall apply to a development that meets
33the requirements of subdivision (b) but only at the request of the
34applicant. An applicant may request parking incentives or
35concessions beyond those provided in this subdivision pursuant
36to subdivision (d).

begin insert

37(6) This subdivision does not preclude a city, county, or city
38and county from reducing or eliminating a parking requirement
39for development projects of any type in any location.

end insert
begin insert

P20   1(7) Notwithstanding paragraphs (2) and (3), a city, county, or
2city and county may impose a higher parking standard, not to
3exceed the standard described in paragraph (1), based upon
4substantial evidence found in an area-wide, or jurisdiction-wide
5parking study conducted by an independent consultant within the
6last 5 years, that includes, but is not limited to, an analysis of
7parking availability, differing levels of transit access, walkability
8access to transit services, the potential for shared parking, and
9the effect of parking requirements on the cost of market-rate and
10subsidized developments. The city, county, or city and county shall
11make findings supporting the need for the higher parking ratio.

end insert
12

begin deleteSEC. 2.end delete
13begin insert SEC. 3.end insert  

If the Commission on State Mandates determines that
14this act contains costs mandated by the state, reimbursement to
15local agencies and school districts for those costs shall be made
16pursuant to Part 7 (commencing with Section 17500) of Division
174 of Title 2 of the Government Code.



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