Amended in Senate July 8, 2015

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 Assembly Members Chau and Quirk

(Principal coauthor: Assembly Member Gonzalez)

begin insert

(Coauthor: Senator Beall)

end insert

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 parkingbegin delete ratioend deletebegin insert ratio, inclusive of handicapped and guest parking,end insert in excess of 0.5 spaces per bedroom on a development that includes the maximum percentage of low- or very low income units, as specified, and is located withinbegin delete one-halfend deletebegin insert12end insert 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 ratiobegin insert, inclusive of handicapped and guest parking,end insert 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 withinbegin delete one-halfend deletebegin insert12end insert 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 orbegin delete older,end deletebegin insert olderend insert that complies with specified existing laws regarding senior housing, or is a special needs housing development, as those terms are defined.begin insert The bill would require a subject development that is a for-rent housing development for individuals that are 62 years of age or older or a special needs housing development to have either paratransit service or be located within end insertbegin insert12end insertbegin insert mile of fixed bus route service that operates at least 8 times per day.end insert 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:

P3    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.

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

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

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.

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.

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

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 lowerbegin delete Incomeend deletebegin insert incomeend insert households drive 25 to 30 percent fewer
29miles when living within one-half mile of transit than those living
30in non-TOD program areas. When living within one-quarter mile
31of frequent transit, they drove nearly 50 percent less.

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.

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

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.

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.

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.

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

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.

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

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.

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:

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

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

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

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.

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

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.

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.

14

SEC. 2.  

Section 65915 of the Government Code is amended
15to read:

16

65915.  

(a) When an applicant seeks a density bonus for a
17housing development within, or for the donation of land for housing
18within, the jurisdiction of a city, county, or city and county, that
19local government shall provide the applicant with incentives or
20concessions for the production of housing units and child care
21facilities as prescribed in this section. All cities, counties, or cities
22and counties shall adopt an ordinance that specifies how
23compliance with this section will be implemented. Failure to adopt
24an ordinance shall not relieve a city, county, or city and county
25from complying with this section.

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

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

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

39(C) A senior citizen housing development, as defined in Sections
4051.3 and 51.12 of the Civil Code, or a mobilehome park that limits
P6    1residency based on age requirements for housing for older persons
2pursuant to Section 798.76 or 799.5 of the Civil Code.

3(D) Ten percent of the total dwelling units in a common interest
4development, as defined in Section 4100 of the Civil Code, for
5persons and families of moderate income, as defined in Section
650093 of the Health and Safety Code, provided that all units in the
7development are offered to the public for purchase.

8(2) For purposes of calculating the amount of the density bonus
9pursuant to subdivision (f), an applicant who requests a density
10bonus pursuant to this subdivision shall elect whether the bonus
11shall be awarded on the basis of subparagraph (A), (B), (C), or (D)
12of paragraph (1).

13(3) For the purposes of this section, “total units” or “total
14dwelling units” does not include units added by a density bonus
15awarded pursuant to this section or any local law granting a greater
16density bonus.

17(c) (1) An applicant shall agree to, and the city, county, or city
18and county shall ensure, the continued affordability of all very low
19and low-income rental units that qualified the applicant for the
20award of the density bonus for 55 years or a longer period of time
21if required by the construction or mortgage financing assistance
22program, mortgage insurance program, or rental subsidy program.
23Rents for the lower income density bonus units shall be set at an
24affordable rent as defined in Section 50053 of the Health and Safety
25Code.

26(2) An applicant shall agree to, and the city, county, or city and
27county shall ensure that, the initial occupant of all for-sale units
28that qualified the applicant for the award of the density bonus are
29persons and families of very low, low, or moderate income, as
30required, and that the units are offered at an affordable housing
31cost, as that cost is defined in Section 50052.5 of the Health and
32Safety Code. The local government shall enforce an equity sharing
33agreement, unless it is in conflict with the requirements of another
34public funding source or law. The following apply to the equity
35sharing agreement:

36(A) Upon resale, the seller of the unit shall retain the value of
37any improvements, the downpayment, and the seller’s proportionate
38share of appreciation. The local government shall recapture any
39initial subsidy, as defined in subparagraph (B), and its proportionate
40share of appreciation, as defined in subparagraph (C), which
P7    1amount shall be used within five years for any of the purposes
2described in subdivision (e) of Section 33334.2 of the Health and
3Safety Code that promote home ownership.

4(B) For purposes of this subdivision, the local government’s
5initial subsidy shall be equal to the fair market value of the home
6at the time of initial sale minus the initial sale price to the
7moderate-income household, plus the amount of any downpayment
8assistance or mortgage assistance. If upon resale the market value
9is lower than the initial market value, then the value at the time of
10the resale shall be used as the initial market value.

11(C) For purposes of this subdivision, the local government’s
12proportionate share of appreciation shall be equal to the ratio of
13the local government’s initial subsidy to the fair market value of
14the home at the time of initial sale.

15(3) (A) An applicant shall be ineligible for a density bonus or
16any other incentives or concessions under this section if the housing
17development is proposed on any property that includes a parcel or
18parcels on which rental dwelling units are or, if the dwelling units
19have been vacated or demolished in the five-year period preceding
20the application, have been subject to a recorded covenant,
21ordinance, or law that restricts rents to levels affordable to persons
22and families of lower or very low income; subject to any other
23form of rent or price control through a public entity’s valid exercise
24of its police power; or occupied by lower or very low income
25households, unless the proposed housing development replaces
26those units, and either of the following applies:

27(i) The proposed housing development, inclusive of the units
28replaced pursuant to this paragraph, contains affordable units at
29the percentages set forth in subdivision (b).

30(ii) Each unit in the development, exclusive of a manager’s unit
31or units, is affordable to, and occupied by, either a lower or very
32low income household.

33(B) For the purposes of this paragraph, “replace” shall mean
34either of the following:

35(i) If any dwelling units described in subparagraph (A) are
36occupied on the date of application, the proposed housing
37development shall provide at least the same number of units of
38equivalent size or type, or both, to be made available at affordable
39rent or affordable housing cost to, and occupied by, persons and
40families in the same or lower income category as those households
P8    1in occupancy. For unoccupied dwelling units described in
2subparagraph (A) in a development with occupied units, the
3proposed housing development shall provide units of equivalent
4size or type, or both, to be made available at affordable rent or
5affordable housing cost to, and occupied by, persons and families
6in the same or lower income category in the same proportion of
7affordability as the occupied units. All replacement calculations
8resulting in fractional units shall be rounded up to the next whole
9number. If the replacement units will be rental dwelling units,
10these units shall be subject to a recorded affordability restriction
11for at least 55 years. If the proposed development is for-sale units,
12the units replaced shall be subject to paragraph (2).

13(ii) If all dwelling units described in subparagraph (A) have
14been vacated or demolished within the five-year period preceding
15the application, the proposed housing development shall provide
16at least the same number of units of equivalent size or type, or
17both, as existed at the highpoint of those units in the five-year
18period preceding the application to be made available at affordable
19rent or affordable housing cost to, and occupied by, persons and
20families in the same or lower income category as those persons
21and families in occupancy at that time, if known. If the incomes
22of the persons and families in occupancy at the highpoint is not
23known, then one-half of the required units shall be made available
24at affordable rent or affordable housing cost to, and occupied by,
25very low income persons and families and one-half of the required
26units shall be made available for rent at affordable housing costs
27 to, and occupied by, low-income persons and families. All
28replacement calculations resulting in fractional units shall be
29rounded up to the next whole number. If the replacement units will
30be rental dwelling units, these units shall be subject to a recorded
31affordability restriction for at least 55 years. If the proposed
32development is for-sale units, the units replaced shall be subject
33to paragraph (2).

34(C) Paragraph (3) of subdivision (c) does not apply to an
35applicant seeking a density bonus for a proposed housing
36development if his or her application was submitted to, or
37processed by, a city, county, or city and county before January 1,
382015.

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

7(A) The concession or incentive is not required in order to
8provide for affordable housing costs, as defined in Section 50052.5
9of the Health and Safety Code, or for rents for the targeted units
10to be set as specified in subdivision (c).

11(B) The concession or incentive would have a specific adverse
12impact, as defined in paragraph (2) of subdivision (d) of Section
1365589.5, upon public health and safety or the physical environment
14or on any real property that is listed in the California Register of
15Historical Resources and for which there is no feasible method to
16satisfactorily mitigate or avoid the specific adverse impact without
17rendering the development unaffordable to low- and
18moderate-income households.

19(C) The concession or incentive would be contrary to state or
20federal law.

21(2) The applicant shall receive the following number of
22incentives or concessions:

23(A) One incentive or concession for projects that include at least
2410 percent of the total units for lower income households, at least
255 percent for very low income households, or at least 10 percent
26for persons and families of moderate income in a common interest
27development.

28(B) Two incentives or concessions for projects that include at
29least 20 percent of the total units for lower income households, at
30least 10 percent for very low income households, or at least 20
31percent for persons and families of moderate income in a common
32interest development.

33(C) Three incentives or concessions for projects that include at
34least 30 percent of the total units for lower income households, at
35least 15 percent for very low income households, or at least 30
36percent for persons and families of moderate income in a common
37interest development.

38(3) The applicant may initiate judicial proceedings if the city,
39county, or city and county refuses to grant a requested density
40bonus, incentive, or concession. If a court finds that the refusal to
P10   1grant a requested density bonus, incentive, or concession is in
2violation of this section, the court shall award the plaintiff
3reasonable attorney’s fees and costs of suit. Nothing in this
4subdivision shall be interpreted to require a local government to
5grant an incentive or concession that has a specific, adverse impact,
6as defined in paragraph (2) of subdivision (d) of Section 65589.5,
7upon health, safety, or the physical environment, and for which
8there is no feasible method to satisfactorily mitigate or avoid the
9specific adverse impact. Nothing in this subdivision shall be
10interpreted to require a local government to grant an incentive or
11concession that would have an adverse impact on any real property
12that is listed in the California Register of Historical Resources.
13The city, county, or city and county shall establish procedures for
14carrying out this section, that shall include legislative body
15approval of the means of compliance with this section.

16(e) (1) In no case may a city, county, or city and county apply
17any development standard that will have the effect of physically
18precluding the construction of a development meeting the criteria
19of subdivision (b) at the densities or with the concessions or
20incentives permitted by this section. An applicant may submit to
21a city, county, or city and county a proposal for the waiver or
22reduction of development standards that will have the effect of
23physically precluding the construction of a development meeting
24the criteria of subdivision (b) at the densities or with the
25concessions or incentives permitted under this section, and may
26request a meeting with the city, county, or city and county. If a
27court finds that the refusal to grant a waiver or reduction of
28development standards is in violation of this section, the court
29shall award the plaintiff reasonable attorney’s fees and costs of
30suit. Nothing in this subdivision shall be interpreted to require a
31local government to waive or reduce development standards if the
32waiver or reduction would have a specific, adverse impact, as
33defined 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 waive or reduce
38development standards that would have an adverse impact on any
39real property that is listed in the California Register of Historical
P11   1Resources, or to grant any waiver or reduction that would be
2contrary to state or federal law.

3(2) A proposal for the waiver or reduction of development
4standards pursuant to this subdivision shall neither reduce nor
5increase the number of incentives or concessions to which the
6applicant is entitled pursuant to subdivision (d).

7(f) For the purposes of this chapter, “density bonus” means a
8density increase over the otherwise maximum allowable residential
9density as of the date of application by the applicant to the city,
10county, or city and county. The applicant may elect to accept a
11lesser percentage of density bonus. The amount of density bonus
12to which the applicant is entitled shall vary according to the amount
13by which the percentage of affordable housing units exceeds the
14percentage established in subdivision (b).

15(1) For housing developments meeting the criteria of
16subparagraph (A) of paragraph (1) of subdivision (b), the density
17bonus shall be calculated as follows:


18

 

Percentage Low-Income UnitsPercentage Density Bonus
1020 
1121.5
1223 
1324.5
1426 
1527.5
1730.5
1832 
1933.5
2035 
P11  3135P11   411P11   416P11  39

 

32(2) For housing developments meeting the criteria of
33subparagraph (B) of paragraph (1) of subdivision (b), the density
34bonus shall be calculated as follows:

 

Percentage Very Low Income UnitsPercentage Density Bonus
520 
622.5
725 
827.5
930 
1032.5
1135 
P11   411P11   416P11  39

 

5(3) For housing developments meeting the criteria of
6subparagraph (C) of paragraph (1) of subdivision (b), the density
7bonus shall be 20 percent of the number of senior housing units.

8(4) For housing developments meeting the criteria of
9subparagraph (D) of paragraph (1) of subdivision (b), the density
10bonus 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   416P11  39

 

5(5) All density calculations resulting in fractional units shall be
6rounded up to the next whole number. The granting of a density
7bonus shall not be interpreted, in and of itself, to require a general
8plan amendment, local coastal plan amendment, zoning change,
9or other discretionary approval.

10(g) (1) When an applicant for a tentative subdivision map,
11parcel map, or other residential development approval donates
12land to a city, county, or city and county in accordance with this
13subdivision, the applicant shall be entitled to a 15-percent increase
14above the otherwise maximum allowable residential density for
15the 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  39

 

P14   1(2) This increase shall be in addition to any increase in density
2mandated by subdivision (b), up to a maximum combined mandated
3density increase of 35 percent if an applicant seeks an increase
4pursuant to both this subdivision and subdivision (b). All density
5 calculations resulting in fractional units shall be rounded up to the
6next whole number. Nothing in this subdivision shall be construed
7to enlarge or diminish the authority of a city, county, or city and
8county to require a developer to donate land as a condition of
9development. An applicant shall be eligible for the increased
10density bonus described in this subdivision if all of the following
11conditions are met:

12(A) The applicant donates and transfers the land no later than
13the date of approval of the final subdivision map, parcel map, or
14residential development application.

15(B) The developable acreage and zoning classification of the
16land being transferred are sufficient to permit construction of units
17affordable to very low income households in an amount not less
18than 10 percent of the number of residential units of the proposed
19development.

20(C) The transferred land is at least one acre in size or of
21sufficient size to permit development of at least 40 units, has the
22appropriate general plan designation, is appropriately zoned with
23appropriate development standards for development at the density
24described in paragraph (3) of subdivision (c) of Section 65583.2,
25and is or will be served by adequate public facilities and
26infrastructure.

27(D) The transferred land shall have all of the permits and
28approvals, other than building permits, necessary for the
29development of the very low income housing units on the
30transferred land, not later than the date of approval of the final
31subdivision map, parcel map, or residential development
32application, except that the local government may subject the
33proposed development to subsequent design review to the extent
34authorized by subdivision (i) of Section 65583.2 if the design is
35not reviewed by the local government prior to the time of transfer.

36(E) The transferred land and the affordable units shall be subject
37to a deed restriction ensuring continued affordability of the units
38consistent with paragraphs (1) and (2) of subdivision (c), which
39shall be recorded on the property at the time of the transfer.

P15   1(F) The land is transferred to the local agency or to a housing
2developer approved by the local agency. The local agency may
3require the applicant to identify and transfer the land to the
4developer.

5(G) The transferred land shall be within the boundary of the
6proposed development or, if the local agency agrees, within
7one-quarter mile of the boundary of the proposed development.

8(H) A proposed source of funding for the very low income units
9shall be identified not later than the date of approval of the final
10subdivision map, parcel map, or residential development
11application.

12(h) (1) When an applicant proposes to construct a housing
13development that conforms to the requirements of subdivision (b)
14and includes a child care facility that will be located on the
15premises of, as part of, or adjacent to, the project, the city, county,
16or city and county shall grant either of the following:

17(A) An additional density bonus that is an amount of square
18feet of residential space that is equal to or greater than the amount
19of square feet in the child care facility.

20(B) An additional concession or incentive that contributes
21significantly to the economic feasibility of the construction of the
22child care facility.

23(2) The city, county, or city and county shall require, as a
24condition of approving the housing development, that the following
25occur:

26(A) The child care facility shall remain in operation for a period
27of time that is as long as or longer than the period of time during
28which the density bonus units are required to remain affordable
29pursuant to subdivision (c).

30(B) Of the children who attend the child care facility, the
31children of very low income households, lower income households,
32or families of moderate income shall equal a percentage that is
33equal to or greater than the percentage of dwelling units that are
34required for very low income households, lower income
35households, or families of moderate income pursuant to subdivision
36(b).

37(3) Notwithstanding any requirement of this subdivision, a city,
38county, or city and county shall not be required to provide a density
39bonus or concession for a child care facility if it finds, based upon
P16   1substantial evidence, that the community has adequate child care
2facilities.

3(4) “Child care facility,” as used in this section, means a child
4day care facility other than a family day care home, including, but
5not limited to, infant centers, preschools, extended day care
6facilities, and schoolage child care centers.

7(i) “Housing development,” as used in this section, means a
8development project for five or more residential units. For the
9purposes of this section, “housing development” also includes a
10subdivision or common interest development, as defined in Section
114100 of the Civil Code, approved by a city, county, or city and
12county and consists of residential units or unimproved residential
13lots and either a project to substantially rehabilitate and convert
14an existing commercial building to residential use or the substantial
15rehabilitation of an existing multifamily dwelling, as defined in
16subdivision (d) of Section 65863.4, where the result of the
17rehabilitation would be a net increase in available residential units.
18For the purpose of calculating a density bonus, the residential units
19shall be on contiguous sites that are the subject of one development
20application, but do not have to be based upon individual
21subdivision maps or parcels. The density bonus shall be permitted
22in geographic areas of the housing development other than the
23areas where the units for the lower income households are located.

24(j) (1) The granting of a concession or incentive shall not be
25interpreted, in and of itself, to require a general plan amendment,
26local coastal plan amendment, zoning change, or other discretionary
27approval. This provision is declaratory of existing law.

28(2) Except as provided in subdivisions (d) and (e), the granting
29of a density bonus shall not be interpreted to require the waiver of
30a local ordinance or provisions of a local ordinance unrelated to
31development standards.

32(k) For the purposes of this chapter, concession or incentive
33means any of the following:

34(1) A reduction in site development standards or a modification
35of zoning code requirements or architectural design requirements
36that exceed the minimum building standards approved by the
37California Building Standards Commission as provided in Part 2.5
38(commencing with Section 18901) of Division 13 of the Health
39and Safety Code, including, but not limited to, a reduction in
40setback and square footage requirements and in the ratio of
P17   1vehicular parking spaces that would otherwise be required that
2results in identifiable, financially sufficient, and actual cost
3reductions.

4(2) Approval of mixed-use zoning in conjunction with the
5housing project if commercial, office, industrial, or other land uses
6will reduce the cost of the housing development and if the
7commercial, office, industrial, or other land uses are compatible
8with the housing project and the existing or planned development
9in the area where the proposed housing project will be located.

10(3) Other regulatory incentives or concessions proposed by the
11developer or the city, county, or city and county that result in
12identifiable, financially sufficient, and actual cost reductions.

13(l) Subdivision (k) does not limit or require the provision of
14direct financial incentives for the housing development, including
15the provision of publicly owned land, by the city, county, or city
16and county, or the waiver of fees or dedication requirements.

17(m) This section does not supersede or in any way alter or lessen
18the effect or application of the California Coastal Act of 1976
19(Division 20 (commencing with Section 30000) of the Public
20Resources Code).

21(n) If permitted by local ordinance, nothing in this section shall
22be construed to prohibit a city, county, or city and county from
23granting a density bonus greater than what is described in this
24 section for a development that meets the requirements of this
25section or from granting a proportionately lower density bonus
26than what is required by this section for developments that do not
27meet the requirements of this section.

28(o) For purposes of this section, the following definitions shall
29apply:

30(1) “Development standard” includes a site or construction
31condition, including, but not limited to, a height limitation, a
32setback requirement, a floor area ratio, an onsite open-space
33requirement, or a parking ratio that applies to a residential
34development pursuant to any ordinance, general plan element,
35specific plan, charter, or other local condition, law, policy,
36resolution, or regulation.

37(2) “Maximum allowable residential density” means the density
38allowed under the zoning ordinance and land use element of the
39 general plan, or if a range of density is permitted, means the
40maximum allowable density for the specific zoning range and land
P18   1use element of the general plan applicable to the project. Where
2the density allowed under the zoning ordinance is inconsistent
3with the density allowed under the land use element of the general
4plan, the general plan density shall prevail.

5(p) (1)  Except as provided in paragraphs (2) and (3),begin insert upon the
6request of the developer,end insert
a city, county, or city and county shall
7not require a vehicular parking ratio, inclusive of handicapped and
8guest parking, of a development meeting the criteria of subdivisions
9(b) and (c), that exceeds the following ratios:

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

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

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

13(2) Notwithstanding paragraph (1), if a development includes
14the maximum percentage of low- or very low income units
15provided for in paragraphs (1) and (2) of subdivision (f) and is
16located within one-half mile of a major transit stop, as defined in
17subdivision (b) of Section 21155 of the Public Resources Code,
18and there is unobstructed access to the major transit stop from the
19development, then, upon the request of the developer, a city,
20county, or city and county shall not impose a vehicular parking
21begin delete ratioend deletebegin insert ratio, inclusive of handicapped and guest parking,end insert that
22exceeds 0.5 spaces per bedroom.

23(3) Notwithstanding paragraph (1), if a development consists
24solely of rental units, exclusive of a manager’s unit or units, with
25an affordable housing cost to lower income families, as provided
26in Section 50052.5 of the Health and Safety Code, then, upon the
27request of the developer, a city, county, or city and county shall
28not impose abegin delete minimumend delete vehicular parkingbegin delete requirement, if the
29development meets any of the following criteria:end delete
begin insert ratio, inclusive
30of handicapped and guest parking, that exceeds the following
31 ratios:end insert

32(A) begin deleteThe end deletebegin insertIf the end insertdevelopment is located within one-half mile of
33a major transit stop, as defined in subdivision (b) of Section 21155
34of the Public Resources Code, and there is unobstructed access to
35the major transit stop from thebegin delete development.end deletebegin insert development, the
36ratio shall not exceed 0.5 spaces per unit.end insert
For purposes of this
37paragraph, a development shall have unobstructed access to the
38major transit stop if a resident is able tobegin delete walk toend deletebegin insert accessend insert the major
39transit stop without encountering natural or constructed
40impediments.

P19   1(B) begin deleteThe end deletebegin insertIf the end insertdevelopment is a for-rent housing development
2for individuals who are 62 years of age or older that complies with
3Sections 51.2 and 51.3 of the Civilbegin delete Code.end deletebegin insert Code, the ratio shall not
4exceed 0.5 spaces per unit. The development shall have either
5paratransit service or be located within one-half mile of fixed bus
6route service that operates at least eight times per day.end insert

7(C) begin deleteThe end deletebegin insertIf the end insertdevelopment is a special needs housing
8development, as defined in Section 51312 of the Health and Safety
9begin delete Code.end deletebegin insert Code, the ratio shall not exceed 0.3 spaces per unit. The
10development shall have either paratransit service or be located
11within one-half mile of fixed bus route service that operates at
12least eight times per day.end insert

13(4) If the total number of parking spaces required for a
14development is other than a whole number, the number shall be
15rounded up to the next whole number. For purposes of this
16subdivision, a development may provide on-site parking through
17tandem parking or uncovered parking, but not through on-street
18parking.

19(5) This subdivision shall apply to a development that meets
20the requirements of subdivisions (b) and (c), but only at the request
21of the applicant. An applicant may request parking incentives or
22concessions beyond those provided in this subdivision pursuant
23to subdivision (d).

24(6) This subdivision does not preclude a city, county, or city
25and county from reducing or eliminating a parking requirement
26for development projects of any type in any location.

27(7) Notwithstanding paragraphs (2) and (3), if a city, county or
28city and county has conducted an area-wide or jurisdiction-wide
29parking study in the lastbegin delete 5end deletebegin insert sevenend insert years, then the city, county, or
30city and county may impose a higher vehicular parking ratio not
31to exceed the ratio described in paragraph (1), based upon
32substantial evidence found in the parking study conducted by an
33independent consultant, that includes, but is not limited to, an
34analysis of parking availability, differing levels of transit access,
35walkability access to transit services, the potential for shared
36parking, and the effect of parking requirements on the cost of
37market-rate and subsidized developments. The city, county, or city
38and county shall make findings supporting the need for the higher
39parking ratio.

P20   1

SEC. 3.  

If the Commission on State Mandates determines that
2this act contains costs mandated by the state, reimbursement to
3local agencies and school districts for those costs shall be made
4pursuant to Part 7 (commencing with Section 17500) of Division
54 of Title 2 of the Government Code.



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