Amended in Senate June 23, 2015

Amended in Assembly June 2, 2015

Amended in Assembly March 26, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 744


Introduced by Assemblybegin delete Memberend deletebegin insert Membersend insert Chaubegin insert and Quirkend insert

(Principal coauthor: Assembly Member Gonzalez)

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.

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-begin delete andend deletebegin insert orend insert 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,begin insert that complies with specified existing laws regarding senior housing,end insert 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.

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:

P2    1

SECTION 1.  

The Legislature finds and declares all of the
2following:

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.

P3    1(b) There exists a severe shortage of affordable housing,
2especially for persons and families of extremely low, very low and
3low income, and there is an immediate need to encourage the
4development of new housing, not only through the provision of
5financial assistance but also through reforms to regulation.

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

7(d) The cost of building affordable housing in California is
8impacted by local opposition, changes imposed by local design
9and review, and requirements for on-site parking.

10(e) The average construction cost per space, excluding land
11cost, in a parking structure in the United States is about $24,000
12for aboveground parking and $34,000 for underground parking.
13In an affordable housing project with a fixed budget, every $24,000
14spent on a required parking space is $24,000 less to spend on
15housing.

16(f) The biggest single determinant of vehicle miles traveled and
17therefore greenhouse gas emissions is ownership of a private
18vehicle.

19(g) A review of developments funded through the Department
20of Housing and Community Development’s Transit-Oriented
21Development Implementation Program (TOD program) shows
22that lower Income households drive 25 to 30 percent fewer miles
23when living within one-half mile of transit than those living in
24non-TOD program areas. When living within one-quarter mile of
25frequent transit, they drove nearly 50 percent less.

26(h) When cities require off-street parking with all new residential
27construction, they shift what should be the cost of driving, the cost
28of parking a car, into the cost of housing, which artificially
29increases the cost of housing.

30(i) Increases in public transportation and shared mobility options
31and the development of more walkable and bikeable neighborhoods
32reduce the demand for parking.

33(j) Consistent with Chapter 488 of the Statues of 2006 (AB 32)
34and Chapter 728 of the Statutes of 2008 (SB 375), it is state policy
35to promote transit-oriented infill development to reduce greenhouse
36gas emissions.

37(k) The high cost of the land and improvements required to
38provide parking significantly increases the cost of transit-oriented
39 development, making lower cost and affordable housing
P4    1development financially infeasible and hindering the goals of SB
2375.

3(l) Eliminating minimum parking requirements will allow the
4limited funding available for affordable housing to support more
5housing for more Californians. A given housing subsidy fund can
6benefit about 6.5 times more households with no parking spaces
7than households with 2 spaces per unit.

8(m) Minimum parking requirements provide large subsidies for
9parking, which in turn encourage more people to drive cars.

10(n) Minimum parking requirements create a barrier to effective
11use of the density bonus law contained in Section 65915 of the
12Government Code. The parking required for the extra units adds
13construction and land costs that may be prohibitive and requires
14vacant land that may be unavailable, especially in locations near
15transit.

16(o) Increasing the supply of affordable housing near transit helps
17achieve deeper affordability through reduced transportation costs,
18in addition to reduced housing costs.

19(p) Governmental parking requirements for infill and
20transit-oriented development reduce the viability of transit by
21limiting the number of households or workers near transit,
22increasing walking distances, and degrading the pedestrian
23environment.

24(q) Reducing or eliminating minimum parking requirements for
25infill and transit-oriented development and allowing builders and
26the market to decide how much parking is needed can achieve all
27of the following:

28(1) Ensure sufficient amounts of parking at almost all times.

29(2) Reduce the cost of development and increase the number of
30transit-accessible and affordable housing units.

31(3) Allow for more effective use of the density bonus law.

32(4) Increase density in areas with the most housing demand,
33and improve the viability of developing alternate modes of
34transportation, such as public transit, ridesharing, biking, and
35walking.

36(5) Reduce greenhouse gas emissions and vehicle miles traveled
37by removing an incentive to drive.

38(r) It is the intent of the Legislature to reduce the cost of
39development by eliminating excessive minimum parking
P5    1requirements for transit-oriented developments that includes
2affordable housing, senior housing, and special needs housing.

3(s) The Legislature further declares that the need to address
4infill development and excessive parking requirements is a matter
5of statewide concern and is not a municipal affair as that term is
6used in Section 5 of Article XI of the California Constitution.
7Therefore, this act shall apply to all cities, including charter cities.

8

SEC. 2.  

Section 65915 of the Government Code is amended
9to read:

10

65915.  

(a) When an applicant seeks a density bonus for a
11housing development within, or for the donation of land for housing
12within, the jurisdiction of a city, county, or city and county, that
13local government shall provide the applicant with incentives or
14concessions for the production of housing units and child care
15facilities as prescribed in this section. All cities, counties, or cities
16and counties shall adopt an ordinance that specifies how
17compliance with this section will be implemented. Failure to adopt
18an ordinance shall not relieve a city, county, or city and county
19from complying with this section.

20(b) (1) A city, county, or city and county shall grant one density
21 bonus, the amount of which shall be as specified in subdivision
22(f), and incentives or concessions, as described in subdivision (d),
23when an applicant for a housing development seeks and agrees to
24construct a housing development, excluding any units permitted
25by the density bonus awarded pursuant to this section, that will
26contain at least any one of the following:

27(A) Ten percent of the total units of a housing development for
28lower income households, as defined in Section 50079.5 of the
29Health and Safety Code.

30(B) Five percent of the total units of a housing development for
31very low income households, as defined in Section 50105 of the
32Health and Safety Code.

33(C) A senior citizen housing development, as defined in Sections
3451.3 and 51.12 of the Civil Code, or a mobilehome park that limits
35residency based on age requirements for housing for older persons
36pursuant to Section 798.76 or 799.5 of the Civil Code.

37(D) Ten percent of the total dwelling units in a common interest
38development, as defined in Section 4100 of the Civil Code, for
39persons and families of moderate income, as defined in Section
P6    150093 of the Health and Safety Code, provided that all units in the
2development are offered to the public for purchase.

3(2) For purposes of calculating the amount of the density bonus
4pursuant to subdivision (f), an applicant who requests a density
5bonus pursuant to this subdivision shall elect whether the bonus
6shall be awarded on the basis of subparagraph (A), (B), (C), or (D)
7of paragraph (1).

8(3) For the purposes of this section, “total units” or “total
9dwelling units” does not include units added by a density bonus
10awarded pursuant to this section or any local law granting a greater
11density bonus.

12(c) (1) An applicant shall agree to, and the city, county, or city
13and county shall ensure, the continued affordability of all very low
14and low-income rental units that qualified the applicant for the
15award of the density bonus for 55 years or a longer period of time
16if required by the construction or mortgage financing assistance
17program, mortgage insurance program, or rental subsidy program.
18Rents for the lower income density bonus units shall be set at an
19affordable rent as defined in Section 50053 of the Health and Safety
20Code.

21(2) An applicant shall agree to, and the city, county, or city and
22county shall ensure that, the initial occupant of all for-sale units
23that qualified the applicant for the award of the density bonus are
24persons and families of very low, low, or moderate income, as
25required, and that the units are offered at an affordable housing
26cost, as that cost is defined in Section 50052.5 of the Health and
27Safety Code. The local government shall enforce an equity sharing
28agreement, unless it is in conflict with the requirements of another
29public funding source or law. The following apply to the equity
30sharing agreement:

31(A) Upon resale, the seller of the unit shall retain the value of
32any improvements, the downpayment, and the seller’s proportionate
33share of appreciation. The local government shall recapture any
34initial subsidy, as defined in subparagraph (B), and its proportionate
35share of appreciation, as defined in subparagraph (C), which
36amount shall be used within five years for any of the purposes
37described in subdivision (e) of Section 33334.2 of the Health and
38Safety Code that promote home ownership.

39(B) For purposes of this subdivision, the local government’s
40initial subsidy shall be equal to the fair market value of the home
P7    1at the time of initial sale minus the initial sale price to the
2moderate-income household, plus the amount of any downpayment
3assistance or mortgage assistance. If upon resale the market value
4is lower than the initial market value, then the value at the time of
5the resale shall be used as the initial market value.

6(C) For purposes of this subdivision, the local government’s
7proportionate share of appreciation shall be equal to the ratio of
8the local government’s initial subsidy to the fair market value of
9the home at the time of initial sale.

10(3) (A) An applicant shall be ineligible for a density bonus or
11any other incentives or concessions under this section if the housing
12development is proposed on any property that includes a parcel or
13parcels on which rental dwelling units are or, if the dwelling units
14have been vacated or demolished in the five-year period preceding
15the application, have been subject to a recorded covenant,
16ordinance, or law that restricts rents to levels affordable to persons
17and families of lower or very low income; subject to any other
18form of rent or price control through a public entity’s valid exercise
19of its police power; or occupied by lower or very low income
20households, unless the proposed housing development replaces
21those units, and either of the following applies:

22(i) The proposed housing development, inclusive of the units
23replaced pursuant to this paragraph, contains affordable units at
24the percentages set forth in subdivision (b).

25(ii) Each unit in the development, exclusive of a manager’s unit
26or units, is affordable to, and occupied by, either a lower or very
27low income household.

28(B) For the purposes of this paragraph, “replace” shall mean
29either of the following:

30(i) If any dwelling units described in subparagraph (A) are
31occupied on the date of application, the proposed housing
32development shall provide at least the same number of units of
33equivalent size or type, or both, to be made available at affordable
34rent or affordable housing cost to, and occupied by, persons and
35families in the same or lower income category as those households
36in occupancy. For unoccupied dwelling units described in
37subparagraph (A) in a development with occupied units, the
38proposed housing development shall provide units of equivalent
39size or type, or both, to be made available at affordable rent or
40affordable housing cost to, and occupied by, persons and families
P8    1in the same or lower income category in the same proportion of
2affordability as the occupied units. All replacement calculations
3resulting in fractional units shall be rounded up to the next whole
4number. If the replacement units will be rental dwelling units,
5these units shall be subject to a recorded affordability restriction
6for at least 55 years. If the proposed development is for-sale units,
7the units replaced shall be subject to paragraph (2).

8(ii) If all dwelling units described in subparagraph (A) have
9been vacated or demolished within the five-year period preceding
10the application, the proposed housing development shall provide
11at least the same number of units of equivalent size or type, or
12both, as existed at the highpoint of those units in the five-year
13period preceding the application to be made available at affordable
14rent or affordable housing cost to, and occupied by, persons and
15families in the same or lower income category as those persons
16and families in occupancy at that time, if known. If the incomes
17of the persons and families in occupancy at the highpoint is not
18known, then one-half of the required units shall be made available
19at affordable rent or affordable housing cost to, and occupied by,
20very low income persons and families and one-half of the required
21units shall be made available for rent at affordable housing costs
22 to, and occupied by, low-income persons and families. All
23replacement calculations resulting in fractional units shall be
24rounded up to the next whole number. If the replacement units will
25be rental dwelling units, these units shall be subject to a recorded
26affordability restriction for at least 55 years. If the proposed
27development is for-sale units, the units replaced shall be subject
28to paragraph (2).

29(C) Paragraph (3) of subdivision (c) does not apply to an
30applicant seeking a density bonus for a proposed housing
31development if his or her application was submitted to, or
32processed by, a city, county, or city and county before January 1,
332015.

34(d) (1) An applicant for a density bonus pursuant to subdivision
35(b) may submit to a city, county, or city and county a proposal for
36the specific incentives or concessions that the applicant requests
37pursuant to this section, and may request a meeting with the city,
38county, or city and county. The city, county, or city and county
39shall grant the concession or incentive requested by the applicant
P9    1unless the city, county, or city and county makes a written finding,
2based upon substantial evidence, of any of the following:

3(A) The concession or incentive is not required in order to
4provide for affordable housing costs, as defined in Section 50052.5
5of the Health and Safety Code, or for rents for the targeted units
6to be set as specified in subdivision (c).

7(B) The concession or incentive would have a specific adverse
8impact, as defined in paragraph (2) of subdivision (d) of Section
965589.5, upon public health and safety or the physical environment
10or on any real property that is listed in the California Register of
11Historical Resources and for which there is no feasible method to
12satisfactorily mitigate or avoid the specific adverse impact without
13rendering the development unaffordable to low- and
14moderate-income households.

15(C) The concession or incentive would be contrary to state or
16federal law.

17(2) The applicant shall receive the following number of
18incentives or concessions:

19(A) One incentive or concession for projects that include at least
2010 percent of the total units for lower income households, at least
215 percent for very low income households, or at least 10 percent
22for persons and families of moderate income in a common interest
23development.

24(B) Two incentives or concessions for projects that include at
25least 20 percent of the total units for lower income households, at
26least 10 percent for very low income households, or at least 20
27percent for persons and families of moderate income in a common
28interest development.

29(C) Three incentives or concessions for projects that include at
30least 30 percent of the total units for lower income households, at
31least 15 percent for very low income households, or at least 30
32percent for persons and families of moderate income in a common
33interest development.

34(3) The applicant may initiate judicial proceedings if the city,
35county, or city and county refuses to grant a requested density
36bonus, incentive, or concession. If a court finds that the refusal to
37grant a requested density bonus, incentive, or concession is in
38violation of this section, the court shall award the plaintiff
39reasonable attorney’s fees and costs of suit. Nothing in this
40subdivision shall be interpreted to require a local government to
P10   1grant an incentive or concession that has a specific, adverse impact,
2as defined in paragraph (2) of subdivision (d) of Section 65589.5,
3upon health, safety, or the physical environment, and for which
4there is no feasible method to satisfactorily mitigate or avoid the
5specific adverse impact. Nothing in this subdivision shall be
6interpreted to require a local government to grant an incentive or
7concession that would have an adverse impact on any real property
8that is listed in the California Register of Historical Resources.
9The city, county, or city and county shall establish procedures for
10carrying out this section, that shall include legislative body
11approval of the means of compliance with this section.

12(e) (1) In no case may a city, county, or city and county apply
13any development standard that will have the effect of physically
14precluding the construction of a development meeting the criteria
15of subdivision (b) at the densities or with the concessions or
16incentives permitted by this section. An applicant may submit to
17a city, county, or city and county a proposal for the waiver or
18reduction of development standards that will have the effect of
19physically precluding the construction of a development meeting
20the criteria of subdivision (b) at the densities or with the
21concessions or incentives permitted under this section, and may
22request a meeting with the city, county, or city and county. If a
23court finds that the refusal to grant a waiver or reduction of
24development standards is in violation of this section, the court
25shall award the plaintiff reasonable attorney’s fees and costs of
26suit. Nothing in this subdivision shall be interpreted to require a
27local government to waive or reduce development standards if the
28waiver or reduction would have a specific, adverse impact, as
29defined in paragraph (2) of subdivision (d) of Section 65589.5,
30upon health, safety, or the physical environment, and for which
31there is no feasible method to satisfactorily mitigate or avoid the
32specific adverse impact. Nothing in this subdivision shall be
33interpreted to require a local government to waive or reduce
34development standards that would have an adverse impact on any
35real property that is listed in the California Register of Historical
36Resources, or to grant any waiver or reduction that would be
37contrary to state or federal law.

38(2) A proposal for the waiver or reduction of development
39standards pursuant to this subdivision shall neither reduce nor
P11   1increase the number of incentives or concessions to which the
2applicant is entitled pursuant to subdivision (d).

3(f) For the purposes of this chapter, “density bonus” means a
4density increase over the otherwise maximum allowable residential
5density as of the date of application by the applicant to the city,
6county, or city and county. The applicant may elect to accept a
7lesser percentage of density bonus. The amount of density bonus
8to which the applicant is entitled shall vary according to the amount
9by which the percentage of affordable housing units exceeds the
10percentage established in subdivision (b).

11(1) For housing developments meeting the criteria of
12subparagraph (A) of paragraph (1) of subdivision (b), the density
13bonus shall be calculated as follows:


14

 

Percentage Low-Income UnitsPercentage Density Bonus
1020 
1121.5
1223 
1324.5
1426 
1527.5
1730.5
1832 
1933.5
2035 
P11  2731P11  407P11  4012P11  35

 

28(2) For housing developments meeting the criteria of
29subparagraph (B) of paragraph (1) of subdivision (b), the density
30bonus shall be calculated as follows:

 

Percentage Very Low Income UnitsPercentage Density Bonus
520 
622.5
725 
827.5
930 
1032.5
1135 
P11  407P11  4012P11  35

 

P12   1(3) For housing developments meeting the criteria of
2subparagraph (C) of paragraph (1) of subdivision (b), the density
3bonus shall be 20 percent of the number of senior housing units.

4(4) For housing developments meeting the criteria of
5subparagraph (D) of paragraph (1) of subdivision (b), the density
6bonus 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  4012P11  35

 

P13   1(5) All density calculations resulting in fractional units shall be
2rounded up to the next whole number. The granting of a density
3bonus shall not be interpreted, in and of itself, to require a general
4plan amendment, local coastal plan amendment, zoning change,
5or other discretionary approval.

6(g) (1) When an applicant for a tentative subdivision map,
7parcel map, or other residential development approval donates
8land to a city, county, or city and county in accordance with this
9subdivision, the applicant shall be entitled to a 15-percent increase
10above the otherwise maximum allowable residential density for
11the 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  35

 

36(2) This increase shall be in addition to any increase in density
37mandated by subdivision (b), up to a maximum combined mandated
38density increase of 35 percent if an applicant seeks an increase
39pursuant to both this subdivision and subdivision (b). All density
40 calculations resulting in fractional units shall be rounded up to the
P14   1next whole number. Nothing in this subdivision shall be construed
2to enlarge or diminish the authority of a city, county, or city and
3county to require a developer to donate land as a condition of
4development. An applicant shall be eligible for the increased
5density bonus described in this subdivision if all of the following
6conditions are met:

7(A) The applicant donates and transfers the land no later than
8the date of approval of the final subdivision map, parcel map, or
9residential development application.

10(B) The developable acreage and zoning classification of the
11land being transferred are sufficient to permit construction of units
12affordable to very low income households in an amount not less
13than 10 percent of the number of residential units of the proposed
14development.

15(C) The transferred land is at least one acre in size or of
16sufficient size to permit development of at least 40 units, has the
17appropriate general plan designation, is appropriately zoned with
18appropriate development standards for development at the density
19described in paragraph (3) of subdivision (c) of Section 65583.2,
20and is or will be served by adequate public facilities and
21infrastructure.

22(D) The transferred land shall have all of the permits and
23approvals, other than building permits, necessary for the
24development of the very low income housing units on the
25transferred land, not later than the date of approval of the final
26subdivision map, parcel map, or residential development
27application, except that the local government may subject the
28proposed development to subsequent design review to the extent
29authorized by subdivision (i) of Section 65583.2 if the design is
30not reviewed by the local government prior to the time of transfer.

31(E) The transferred land and the affordable units shall be subject
32to a deed restriction ensuring continued affordability of the units
33consistent with paragraphs (1) and (2) of subdivision (c), which
34shall be recorded on the property at the time of the transfer.

35(F) The land is transferred to the local agency or to a housing
36developer approved by the local agency. The local agency may
37require the applicant to identify and transfer the land to the
38developer.

P15   1(G) The transferred land shall be within the boundary of the
2proposed development or, if the local agency agrees, within
3one-quarter mile of the boundary of the proposed development.

4(H) A proposed source of funding for the very low income units
5shall be identified not later than the date of approval of the final
6subdivision map, parcel map, or residential development
7application.

8(h) (1) When an applicant proposes to construct a housing
9development that conforms to the requirements of subdivision (b)
10and includes a child care facility that will be located on the
11premises of, as part of, or adjacent to, the project, the city, county,
12or city and county shall grant either of the following:

13(A) An additional density bonus that is an amount of square
14feet of residential space that is equal to or greater than the amount
15of square feet in the child care facility.

16(B) An additional concession or incentive that contributes
17significantly to the economic feasibility of the construction of the
18child care facility.

19(2) The city, county, or city and county shall require, as a
20condition of approving the housing development, that the following
21occur:

22(A) The child care facility shall remain in operation for a period
23of time that is as long as or longer than the period of time during
24which the density bonus units are required to remain affordable
25pursuant to subdivision (c).

26(B) Of the children who attend the child care facility, the
27children of very low income households, lower income households,
28or families of moderate income shall equal a percentage that is
29equal to or greater than the percentage of dwelling units that are
30required for very low income households, lower income
31households, or families of moderate income pursuant to subdivision
32(b).

33(3) Notwithstanding any requirement of this subdivision, a city,
34county, or city and county shall not be required to provide a density
35bonus or concession for a child care facility if it finds, based upon
36substantial evidence, that the community has adequate child care
37facilities.

38(4) “Child care facility,” as used in this section, means a child
39day care facility other than a family day care home, including, but
P16   1not limited to, infant centers, preschools, extended day care
2facilities, and schoolage child care centers.

3(i) “Housing development,” as used in this section, means a
4development project for five or more residential units. For the
5purposes of this section, “housing development” also includes a
6subdivision or common interest development, as defined in Section
74100 of the Civil Code, approved by a city, county, or city and
8county and consists of residential units or unimproved residential
9lots and either a project to substantially rehabilitate and convert
10an existing commercial building to residential use or the substantial
11rehabilitation of an existing multifamily dwelling, as defined in
12subdivision (d) of Section 65863.4, where the result of the
13rehabilitation would be a net increase in available residential units.
14For the purpose of calculating a density bonus, the residential units
15shall be on contiguous sites that are the subject of one development
16application, but do not have to be based upon individual
17subdivision maps or parcels. The density bonus shall be permitted
18in geographic areas of the housing development other than the
19areas where the units for the lower income households are located.

20(j) (1) The granting of a concession or incentive shall not be
21interpreted, in and of itself, to require a general plan amendment,
22local coastal plan amendment, zoning change, or other discretionary
23approval. This provision is declaratory of existing law.

24(2) Except as provided in subdivisions (d) and (e), the granting
25of a density bonus shall not be interpreted to require the waiver of
26a local ordinance or provisions of a local ordinance unrelated to
27development standards.

28(k) For the purposes of this chapter, concession or incentive
29means any of the following:

30(1) A reduction in site development standards or a modification
31of zoning code requirements or architectural design requirements
32that exceed the minimum building standards approved by the
33California Building Standards Commission as provided in Part 2.5
34(commencing with Section 18901) of Division 13 of the Health
35and Safety Code, including, but not limited to, a reduction in
36setback and square footage requirements and in the ratio of
37vehicular parking spaces that would otherwise be required that
38results in identifiable, financially sufficient, and actual cost
39reductions.

P17   1(2) Approval of mixed-use zoning in conjunction with the
2housing project if commercial, office, industrial, or other land uses
3will reduce the cost of the housing development and if the
4commercial, office, industrial, or other land uses are compatible
5with the housing project and the existing or planned development
6in the area where the proposed housing project will be located.

7(3) Other regulatory incentives or concessions proposed by the
8developer or the city, county, or city and county that result in
9identifiable, financially sufficient, and actual cost reductions.

10(l) Subdivision (k) does not limit or require the provision of
11direct financial incentives for the housing development, including
12the provision of publicly owned land, by the city, county, or city
13and county, or the waiver of fees or dedication requirements.

14(m) This section does not supersede or in any way alter or lessen
15the effect or application of the California Coastal Act of 1976
16(Division 20 (commencing with Section 30000) of the Public
17Resources Code).

18(n) If permitted by local ordinance, nothing in this section shall
19be construed to prohibit a city, county, or city and county from
20granting a density bonus greater than what is described in this
21 section for a development that meets the requirements of this
22section or from granting a proportionately lower density bonus
23than what is required by this section for developments that do not
24meet the requirements of this section.

25(o) For purposes of this section, the following definitions shall
26apply:

27(1) “Development standard” includes a site or construction
28condition, including, but not limited to, a height limitation, a
29setback requirement, a floor area ratio, an onsite open-space
30requirement, or a parking ratio that applies to a residential
31development pursuant to any ordinance, general plan element,
32specific plan, charter, or other local condition, law, policy,
33resolution, or regulation.

34(2) “Maximum allowable residential density” means the density
35allowed under the zoning ordinance and land use element of the
36 general plan, or if a range of density is permitted, means the
37maximum allowable density for the specific zoning range and land
38use element of the general plan applicable to the project. Where
39the density allowed under the zoning ordinance is inconsistent
P18   1with the density allowed under the land use element of the general
2plan, the general plan density shall prevail.

3(p) (1)  Except as provided in paragraphs (2) and (3), a city,
4county, or city and county shall not require a vehicular parking
5ratio, inclusive of handicapped and guest parking, of a development
6meeting the criteria ofbegin delete subdivision (b),end deletebegin insert subdivisions (b) and (c),end insert
7 that exceeds the following ratios:

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

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

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

11(2) Notwithstanding paragraph (1), if a development includes
12the maximum percentage of low-begin delete andend deletebegin insert orend insert very low income units
13provided for in paragraphs (1) and (2) of subdivision (f) and is
14located within one-half mile of a major transit stop, as defined in
15subdivision (b) of Section 21155 of the Public Resources Code,
16and there is unobstructed access to the major transit stop from the
17development, then, upon the request of the developer, a city,
18county, or city and county shall not impose a vehicular parking
19ratio that exceeds 0.5 spaces per bedroom.

20(3) Notwithstanding paragraph (1), if a development consists
21solely of rental units, exclusive of a manager’s unit or units, with
22an affordable housing cost to lower income families, as provided
23in Section 50052.5 of the Health and Safety Code, then, upon the
24request of the developer, a city, county, or city and county shall
25not impose a minimum vehicular parking requirement, if the
26development meets any of the following criteria:

27(A) The development is located within one-half mile of a major
28transit stop, as defined in subdivision (b) of Section 21155 of the
29Public Resources Code, and there is unobstructed access to the
30major transit stop from the development.begin insert For purposes of this
31paragraph, a development shall have unobstructed access to the
32major transit stop if a resident is able to walk to the major transit
33stop without encountering natural or constructed impediments.end insert

34(B) The development is a for-rent housing development for
35individuals who are 62 years of age orbegin delete older.end deletebegin insert older that complies
36with Sections 51.2 and 51.3 of the Civil Code.end insert

37(C) The development is a special needs housing development,
38as defined in Section 51312 of the Health and Safety Code.

39(4) If the total number of parking spaces required for a
40development is other than a whole number, the number shall be
P19   1rounded up to the next whole number. For purposes of this
2subdivision, a development may provide on-site parking through
3tandem parking or uncovered parking, but not through on-street
4parking.

5(5) This subdivision shall apply to a development that meets
6the requirements ofbegin delete subdivisionend deletebegin insert subdivisionsend insert (b)begin insert and (c),end insert but only
7at the request of the applicant. An applicant may request parking
8incentives or concessions beyond those provided in this subdivision
9pursuant to subdivision (d).

10(6) This subdivision does not preclude a city, county, or city
11and county from reducing or eliminating a parking requirement
12for development projects of any type in any location.

13(7) Notwithstanding paragraphs (2) and (3),begin delete aend deletebegin insert if a city, county
14or city and county has conducted an area-wide or jurisdiction-wide
15parking study in the last 5 years, then theend insert
city, county, or city and
16county may impose a higherbegin delete parking standard,end deletebegin insert vehicular parking
17ratioend insert
not to exceed thebegin delete standardend deletebegin insert ratioend insert described in paragraph (1),
18based upon substantial evidence found inbegin delete an area-wide, or
19jurisdiction-wideend delete
begin insert theend insert parking study conducted by an independent
20begin delete consultant within the last 5 years,end deletebegin insert consultant,end insert that includes, but is
21not limited to, an analysis of parking availability, differing levels
22of transit access, walkability access to transit services, the potential
23for shared parking, and the effect of parking requirements on the
24cost of market-rate and subsidized developments. The city, county,
25or city and county shall make findings supporting the need for the
26higher parking ratio.

27

SEC. 3.  

If the Commission on State Mandates determines that
28this act contains costs mandated by the state, reimbursement to
29local agencies and school districts for those costs shall be made
30pursuant to Part 7 (commencing with Section 17500) of Division
314 of Title 2 of the Government Code.



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