Amended in Senate August 18, 2015

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)

(Coauthor: Senator Beall)

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, inclusive of handicapped and guest parking, 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 within12 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, inclusive of handicapped and guest parking, 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 within12 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 that complies with specified existing laws regarding senior housing, or is a special needs housing development, as those terms are defined. 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 orbegin delete be locatedend deletebegin insert unobstructed access,end insert within 12begin delete mile ofend deletebegin insert mile, toend insert fixed bus route service that operates at least 8 times per day.begin insert The bill would authorize a city, county, or city and county to impose a higher vehicular parking ratio based on substantial evidence found in an areawide or jurisdictionwide parking study, as specified.end insert The bill would make findings andbegin delete declarations in this regard,end deletebegin insert declarations,end insert including thatbegin delete this constitutesend deletebegin insert the subject of the bill isend insert a matter of statewide concern andbegin delete isend delete not a municipal affair.

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

begin delete

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.

end delete
begin delete

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.

end delete
begin insert

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.

end insert
begin insert

This bill would provide that no reimbursement is required by this act for a specified reason.

end insert

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, very low,
9and low 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.

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
P4    1that lower income households drive 25 to 30 percent fewer miles
2when living within one-half mile of transit than those living in
3non-TOD program areas. When living within one-quarter mile of
4frequent transit, they drove nearly 50 percent less.

5(h) When cities require off-street parking with all new residential
6construction, they shift what should be the cost of driving, the cost
7of parking a car, into the cost of housing, which artificially
8increases the cost of housing.

9(i) Increases in public transportation and shared mobility options
10and the development of more walkable and bikeable neighborhoods
11reduce the demand for parking.

12(j) Consistent with Chapter 488 of the Statues of 2006 (AB 32)
13and Chapter 728 of the Statutes of 2008 (SB 375), it is state policy
14to promote transit-oriented infill development to reduce greenhouse
15gas emissions.

16(k) The high cost of the land and improvements required to
17provide parking significantly increases the cost of transit-oriented
18 development, making lower cost and affordable housing
19development financially infeasible and hindering the goals of SB
20375.

21(l) Eliminating minimum parking requirements will allow the
22limited funding available for affordable housing to support more
23housing for more Californians. A given housing subsidy fund can
24benefit about 6.5 times more households with no parking spaces
25than households with 2 spaces per unit.

26(m) Minimum parking requirements provide large subsidies for
27parking, which in turn encourage more people to drive cars.

28(n) Minimum parking requirements create a barrier to effective
29use of the density bonus law contained in Section 65915 of the
30Government Code. The parking required for the extra units adds
31construction and land costs that may be prohibitive and requires
32vacant land that may be unavailable, especially in locations near
33transit.

34(o) Increasing the supply of affordable housing near transit helps
35achieve deeper affordability through reduced transportation costs,
36in addition to reduced housing costs.

37(p) Governmental parking requirements for infill and
38transit-oriented development reduce the viability of transit by
39limiting the number of households or workers near transit,
P5    1increasing walking distances, and degrading the pedestrian
2environment.

3(q) Reducing or eliminating minimum parking requirements for
4infill and transit-oriented development and allowing builders and
5the market to decide how much parking is needed can achieve all
6of the following:

7(1) Ensure sufficient amounts of parking at almost all times.

8(2) Reduce the cost of development and increase the number of
9transit-accessible and affordable housing units.

10(3) Allow for more effective use of the density bonus law.

11(4) Increase density in areas with the most housing demand,
12and improve the viability of developing alternate modes of
13transportation, such as public transit, ridesharing, biking, and
14walking.

15(5) Reduce greenhouse gas emissions and vehicle miles traveled
16by removing an incentive to drive.

17(r) It is the intent of the Legislature to reduce the cost of
18development by eliminating excessive minimum parking
19requirements for transit-oriented developments that includes
20affordable housing, senior housing, and special needs housing.

21(s) The Legislature further declares that the need to address
22infill development and excessive parking requirements is a matter
23of statewide concern and is not a municipal affair as that term is
24used in Section 5 of Article XI of the California Constitution.
25Therefore, this act shall apply to all cities, including charter cities.

26

SEC. 2.  

Section 65915 of the Government Code is amended
27to read:

28

65915.  

(a) When an applicant seeks a density bonus for a
29housing development within, or for the donation of land for housing
30within, the jurisdiction of a city, county, or city and county, that
31local government shall provide the applicant with incentives or
32concessions for the production of housing units and child care
33facilities as prescribed in this section. All cities, counties, or cities
34and counties shall adopt an ordinance that specifies how
35compliance with this section will be implemented. Failure to adopt
36an ordinance shall not relieve a city, county, or city and county
37from complying with this section.

38(b) (1) A city, county, or city and county shall grant one density
39 bonus, the amount of which shall be as specified in subdivision
40(f), and incentives or concessions, as described in subdivision (d),
P6    1when an applicant for a housing development seeks and agrees to
2construct a housing development, excluding any units permitted
3by the density bonus awarded pursuant to this section, that will
4contain at least any one of the following:

5(A) Ten percent of the total units of a housing development for
6lower income households, as defined in Section 50079.5 of the
7Health and Safety Code.

8(B) Five percent of the total units of a housing development for
9very low income households, as defined in Section 50105 of the
10Health and Safety Code.

11(C) A senior citizen housing development, as defined in Sections
1251.3 and 51.12 of the Civil Code, or a mobilehome park that limits
13residency based on age requirements for housing for older persons
14pursuant to Section 798.76 or 799.5 of the Civil Code.

15(D) Ten percent of the total dwelling units in a common interest
16development, as defined in Section 4100 of the Civil Code, for
17persons and families of moderate income, as defined in Section
1850093 of the Health and Safety Code, provided that all units in the
19development are offered to the public for purchase.

20(2) For purposes of calculating the amount of the density bonus
21pursuant to subdivision (f), an applicant who requests a density
22bonus pursuant to this subdivision shall elect whether the bonus
23shall be awarded on the basis of subparagraph (A), (B), (C), or (D)
24of paragraph (1).

25(3) For the purposes of this section, “total units” or “total
26dwelling units” does not include units added by a density bonus
27awarded pursuant to this section or any local law granting a greater
28density bonus.

29(c) (1) An applicant shall agree to, and the city, county, or city
30and county shall ensure, the continued affordability of all very low
31and low-income rental units that qualified the applicant for the
32award of the density bonus for 55 years or a longer period of time
33if required by the construction or mortgage financing assistance
34program, mortgage insurance program, or rental subsidy program.
35Rents for the lower income density bonus units shall be set at an
36affordable rent as defined in Section 50053 of the Health and Safety
37Code.

38(2) An applicant shall agree to, and the city, county, or city and
39county shall ensure that, the initial occupant of all for-sale units
40that qualified the applicant for the award of the density bonus are
P7    1persons and families of very low, low, or moderate income, as
2required, and that the units are offered at an affordable housing
3cost, as that cost is defined in Section 50052.5 of the Health and
4Safety Code. The local government shall enforce an equity sharing
5agreement, unless it is in conflict with the requirements of another
6public funding source or law. The following apply to the equity
7sharing agreement:

8(A) Upon resale, the seller of the unit shall retain the value of
9any improvements, the downpayment, and the seller’s proportionate
10share of appreciation. The local government shall recapture any
11initial subsidy, as defined in subparagraph (B), and its proportionate
12share of appreciation, as defined in subparagraph (C), which
13amount shall be used within five years for any of the purposes
14described in subdivision (e) of Section 33334.2 of the Health and
15Safety Code that promote home ownership.

16(B) For purposes of this subdivision, the local government’s
17initial subsidy shall be equal to the fair market value of the home
18at the time of initial sale minus the initial sale price to the
19moderate-income household, plus the amount of any downpayment
20assistance or mortgage assistance. If upon resale the market value
21is lower than the initial market value, then the value at the time of
22the resale shall be used as the initial market value.

23(C) For purposes of this subdivision, the local government’s
24proportionate share of appreciation shall be equal to the ratio of
25the local government’s initial subsidy to the fair market value of
26the home at the time of initial sale.

27(3) (A) An applicant shall be ineligible for a density bonus or
28any other incentives or concessions under this section if the housing
29development is proposed on any property that includes a parcel or
30parcels on which rental dwelling units are or, if the dwelling units
31have been vacated or demolished in the five-year period preceding
32the application, have been subject to a recorded covenant,
33ordinance, or law that restricts rents to levels affordable to persons
34and families of lower or very low income; subject to any other
35form of rent or price control through a public entity’s valid exercise
36of its police power; or occupied by lower or very low income
37households, unless the proposed housing development replaces
38those units, and either of the following applies:

P8    1(i) The proposed housing development, inclusive of the units
2replaced pursuant to this paragraph, contains affordable units at
3the percentages set forth in subdivision (b).

4(ii) Each unit in the development, exclusive of a manager’s unit
5or units, is affordable to, and occupied by, either a lower or very
6low income household.

7(B) For the purposes of this paragraph, “replace” shall mean
8either of the following:

9(i) If any dwelling units described in subparagraph (A) are
10occupied on the date of application, the proposed housing
11development shall provide at least the same number of units of
12equivalent size or type, or both, to be made available at affordable
13rent or affordable housing cost to, and occupied by, persons and
14families in the same or lower income category as those households
15in occupancy. For unoccupied dwelling units described in
16subparagraph (A) in a development with occupied units, the
17proposed housing development shall provide units of equivalent
18size or type, or both, to be made available at affordable rent or
19affordable housing cost to, and occupied by, persons and families
20in the same or lower income category in the same proportion of
21affordability as the occupied units. All replacement calculations
22resulting in fractional units shall be rounded up to the next whole
23number. If the replacement units will be rental dwelling units,
24these units shall be subject to a recorded affordability restriction
25for at least 55 years. If the proposed development is for-sale units,
26the units replaced shall be subject to paragraph (2).

27(ii) If all dwelling units described in subparagraph (A) have
28been vacated or demolished within the five-year period preceding
29the application, the proposed housing development shall provide
30at least the same number of units of equivalent size or type, or
31both, as existed at the highpoint of those units in the five-year
32period preceding the application to be made available at affordable
33rent or affordable housing cost to, and occupied by, persons and
34families in the same or lower income category as those persons
35and families in occupancy at that time, if known. If the incomes
36of the persons and families in occupancy at the highpoint is not
37known, then one-half of the required units shall be made available
38at affordable rent or affordable housing cost to, and occupied by,
39very low income persons and families and one-half of the required
40units shall be made available for rent at affordable housing costs
P9    1 to, and occupied by, low-income persons and families. All
2replacement calculations resulting in fractional units shall be
3rounded up to the next whole number. If the replacement units will
4be rental dwelling units, these units shall be subject to a recorded
5affordability restriction for at least 55 years. If the proposed
6development is for-sale units, the units replaced shall be subject
7to paragraph (2).

8(C) Paragraph (3) of subdivision (c) does not apply to an
9applicant seeking a density bonus for a proposed housing
10development if his or her application was submitted to, or
11processed by, a city, county, or city and county before January 1,
122015.

13(d) (1) An applicant for a density bonus pursuant to subdivision
14(b) may submit to a city, county, or city and county a proposal for
15the specific incentives or concessions that the applicant requests
16pursuant to this section, and may request a meeting with the city,
17county, or city and county. The city, county, or city and county
18shall grant the concession or incentive requested by the applicant
19unless the city, county, or city and county makes a written finding,
20based upon substantial evidence, of any of the following:

21(A) The concession or incentive is not required in order to
22provide for affordable housing costs, as defined in Section 50052.5
23of the Health and Safety Code, or for rents for the targeted units
24to be set as specified in subdivision (c).

25(B) The concession or incentive would have a specific adverse
26impact, as defined in paragraph (2) of subdivision (d) of Section
2765589.5, upon public health and safety or the physical environment
28or on any real property that is listed in the California Register of
29Historical Resources and for which there is no feasible method to
30satisfactorily mitigate or avoid the specific adverse impact without
31rendering the development unaffordable to low- and
32moderate-income households.

33(C) The concession or incentive would be contrary to state or
34federal law.

35(2) The applicant shall receive the following number of
36incentives or concessions:

37(A) One incentive or concession for projects that include at least
3810 percent of the total units for lower income households, at least
395 percent for very low income households, or at least 10 percent
P10   1for persons and families of moderate income in a common interest
2development.

3(B) Two incentives or concessions for projects that include at
4least 20 percent of the total units for lower income households, at
5least 10 percent for very low income households, or at least 20
6percent for persons and families of moderate income in a common
7interest development.

8(C) Three incentives or concessions for projects that include at
9least 30 percent of the total units for lower income households, at
10least 15 percent for very low income households, or at least 30
11percent for persons and families of moderate income in a common
12interest development.

13(3) The applicant may initiate judicial proceedings if the city,
14county, or city and county refuses to grant a requested density
15bonus, incentive, or concession. If a court finds that the refusal to
16grant a requested density bonus, incentive, or concession is in
17violation of this section, the court shall award the plaintiff
18reasonable attorney’s fees and costs of suit. Nothing in this
19subdivision shall be interpreted to require a local government to
20grant an incentive or concession that has a specific, adverse impact,
21as defined in paragraph (2) of subdivision (d) of Section 65589.5,
22upon health, safety, or the physical environment, and for which
23there is no feasible method to satisfactorily mitigate or avoid the
24specific adverse impact. Nothing in this subdivision shall be
25interpreted to require a local government to grant an incentive or
26concession that would have an adverse impact on any real property
27that is listed in the California Register of Historical Resources.
28The city, county, or city and county shall establish procedures for
29carrying out this section, that shall include legislative body
30approval of the means of compliance with this section.

31(e) (1) In no case may a city, county, or city and county apply
32any development standard that will have the effect of physically
33precluding the construction of a development meeting the criteria
34of subdivision (b) at the densities or with the concessions or
35incentives permitted by this section. An applicant may submit to
36a city, county, or city and county a proposal for the waiver or
37reduction of development standards that will have the effect of
38physically precluding the construction of a development meeting
39the criteria of subdivision (b) at the densities or with the
40concessions or incentives permitted under this section, and may
P11   1request a meeting with the city, county, or city and county. If a
2court finds that the refusal to grant a waiver or reduction of
3development standards is in violation of this section, the court
4shall award the plaintiff reasonable attorney’s fees and costs of
5suit. Nothing in this subdivision shall be interpreted to require a
6local government to waive or reduce development standards if the
7waiver or reduction would have a specific, adverse impact, as
8defined in paragraph (2) of subdivision (d) of Section 65589.5,
9upon health, safety, or the physical environment, and for which
10there is no feasible method to satisfactorily mitigate or avoid the
11specific adverse impact. Nothing in this subdivision shall be
12interpreted to require a local government to waive or reduce
13development standards that would have an adverse impact on any
14real property that is listed in the California Register of Historical
15Resources, or to grant any waiver or reduction that would be
16contrary to state or federal law.

17(2) A proposal for the waiver or reduction of development
18standards pursuant to this subdivision shall neither reduce nor
19increase the number of incentives or concessions to which the
20applicant is entitled pursuant to subdivision (d).

21(f) For the purposes of this chapter, “density bonus” means a
22density increase over the otherwise maximum allowable residential
23density as of the date of application by the applicant to the city,
24county, or city and county. The applicant may elect to accept a
25lesser percentage of density bonus. The amount of density bonus
26to which the applicant is entitled shall vary according to the amount
27by which the percentage of affordable housing units exceeds the
28percentage established in subdivision (b).

29(1) For housing developments meeting the criteria of
30subparagraph (A) of paragraph (1) of subdivision (b), the density
31bonus shall be calculated as follows:


32

 

Percentage Low-Income UnitsPercentage Density Bonus
1020 
1121.5
1223 
1324.5
1426 
1527.5
1730.5
1832 
1933.5
2035 
P12   59P12  1825P12  1830P12  13

 

6(2) For housing developments meeting the criteria of
7subparagraph (B) of paragraph (1) of subdivision (b), the density
8bonus shall be calculated as follows:

 

Percentage Very Low Income UnitsPercentage Density Bonus
520 
622.5
725 
827.5
930 
1032.5
1135 
P12  1825P12  1830P12  13

 

19(3) For housing developments meeting the criteria of
20subparagraph (C) of paragraph (1) of subdivision (b), the density
21bonus shall be 20 percent of the number of senior housing units.

22(4) For housing developments meeting the criteria of
23subparagraph (D) of paragraph (1) of subdivision (b), the density
24bonus 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
P12  1830P12  13

 

19(5) All density calculations resulting in fractional units shall be
20rounded up to the next whole number. The granting of a density
21bonus shall not be interpreted, in and of itself, to require a general
22plan amendment, local coastal plan amendment, zoning change,
23or other discretionary approval.

24(g) (1) When an applicant for a tentative subdivision map,
25parcel map, or other residential development approval donates
26land to a city, county, or city and county in accordance with this
27subdivision, the applicant shall be entitled to a 15-percent increase
28above the otherwise maximum allowable residential density for
29the 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
P12  13

 

14(2) This increase shall be in addition to any increase in density
15mandated by subdivision (b), up to a maximum combined mandated
16density increase of 35 percent if an applicant seeks an increase
17pursuant to both this subdivision and subdivision (b). All density
18 calculations resulting in fractional units shall be rounded up to the
19next whole number. Nothing in this subdivision shall be construed
20to enlarge or diminish the authority of a city, county, or city and
21county to require a developer to donate land as a condition of
22development. An applicant shall be eligible for the increased
23density bonus described in this subdivision if all of the following
24conditions are met:

25(A) The applicant donates and transfers the land no later than
26the date of approval of the final subdivision map, parcel map, or
27residential development application.

28(B) The developable acreage and zoning classification of the
29land being transferred are sufficient to permit construction of units
30affordable to very low income households in an amount not less
31than 10 percent of the number of residential units of the proposed
32development.

33(C) The transferred land is at least one acre in size or of
34sufficient size to permit development of at least 40 units, has the
35appropriate general plan designation, is appropriately zoned with
36appropriate development standards for development at the density
37described in paragraph (3) of subdivision (c) of Section 65583.2,
38and is or will be served by adequate public facilities and
39infrastructure.

P15   1(D) The transferred land shall have all of the permits and
2approvals, other than building permits, necessary for the
3development of the very low income housing units on the
4transferred land, not later than the date of approval of the final
5subdivision map, parcel map, or residential development
6application, except that the local government may subject the
7proposed development to subsequent design review to the extent
8authorized by subdivision (i) of Section 65583.2 if the design is
9not reviewed by the local government prior to the time of transfer.

10(E) The transferred land and the affordable units shall be subject
11to a deed restriction ensuring continued affordability of the units
12consistent with paragraphs (1) and (2) of subdivision (c), which
13shall be recorded on the property at the time of the transfer.

14(F) The land is transferred to the local agency or to a housing
15developer approved by the local agency. The local agency may
16require the applicant to identify and transfer the land to the
17developer.

18(G) The transferred land shall be within the boundary of the
19proposed development or, if the local agency agrees, within
20one-quarter mile of the boundary of the proposed development.

21(H) A proposed source of funding for the very low income units
22shall be identified not later than the date of approval of the final
23subdivision map, parcel map, or residential development
24application.

25(h) (1) When an applicant proposes to construct a housing
26development that conforms to the requirements of subdivision (b)
27and includes a child care facility that will be located on the
28premises of, as part of, or adjacent to, the project, the city, county,
29or city and county shall grant either of the following:

30(A) An additional density bonus that is an amount of square
31feet of residential space that is equal to or greater than the amount
32of square feet in the child care facility.

33(B) An additional concession or incentive that contributes
34significantly to the economic feasibility of the construction of the
35child care facility.

36(2) The city, county, or city and county shall require, as a
37condition of approving the housing development, that the following
38occur:

39(A) The child care facility shall remain in operation for a period
40of time that is as long as or longer than the period of time during
P16   1which the density bonus units are required to remain affordable
2pursuant to subdivision (c).

3(B) Of the children who attend the child care facility, the
4children of very low income households, lower income households,
5or families of moderate income shall equal a percentage that is
6equal to or greater than the percentage of dwelling units that are
7required for very low income households, lower income
8households, or families of moderate income pursuant to subdivision
9(b).

10(3) Notwithstanding any requirement of this subdivision, a city,
11county, or city and county shall not be required to provide a density
12bonus or concession for a child care facility if it finds, based upon
13substantial evidence, that the community has adequate child care
14facilities.

15(4) “Child care facility,” as used in this section, means a child
16day care facility other than a family day care home, including, but
17not limited to, infant centers, preschools, extended day care
18facilities, and schoolage child care centers.

19(i) “Housing development,” as used in this section, means a
20development project for five or more residential units. For the
21purposes of this section, “housing development” also includes a
22subdivision or common interest development, as defined in Section
234100 of the Civil Code, approved by a city, county, or city and
24county and consists of residential units or unimproved residential
25lots and either a project to substantially rehabilitate and convert
26an existing commercial building to residential use or the substantial
27rehabilitation of an existing multifamily dwelling, as defined in
28subdivision (d) of Section 65863.4, where the result of the
29rehabilitation would be a net increase in available residential units.
30For the purpose of calculating a density bonus, the residential units
31shall be on contiguous sites that are the subject of one development
32application, but do not have to be based upon individual
33subdivision maps or parcels. The density bonus shall be permitted
34in geographic areas of the housing development other than the
35areas where the units for the lower income households are located.

36(j) (1) The granting of a concession or incentive shall not be
37interpreted, in and of itself, to require a general plan amendment,
38local coastal plan amendment, zoning change, or other discretionary
39approval. This provision is declaratory of existing law.

P17   1(2) Except as provided in subdivisions (d) and (e), the granting
2of a density bonus shall not be interpreted to require the waiver of
3a local ordinance or provisions of a local ordinance unrelated to
4development standards.

5(k) For the purposes of this chapter, concession or incentive
6means any of the following:

7(1) A reduction in site development standards or a modification
8of zoning code requirements or architectural design requirements
9that exceed the minimum building standards approved by the
10California Building Standards Commission as provided in Part 2.5
11(commencing with Section 18901) of Division 13 of the Health
12and Safety Code, including, but not limited to, a reduction in
13setback and square footage requirements and in the ratio of
14vehicular parking spaces that would otherwise be required that
15results in identifiable, financially sufficient, and actual cost
16reductions.

17(2) Approval of mixed-use zoning in conjunction with the
18housing project if commercial, office, industrial, or other land uses
19will reduce the cost of the housing development and if the
20commercial, office, industrial, or other land uses are compatible
21with the housing project and the existing or planned development
22in the area where the proposed housing project will be located.

23(3) Other regulatory incentives or concessions proposed by the
24developer or the city, county, or city and county that result in
25identifiable, financially sufficient, and actual cost reductions.

26(l) Subdivision (k) does not limit or require the provision of
27direct financial incentives for the housing development, including
28the provision of publicly owned land, by the city, county, or city
29and county, or the waiver of fees or dedication requirements.

30(m) This section does not supersede or in any way alter or lessen
31the effect or application of the California Coastal Act of 1976
32(Division 20 (commencing with Section 30000) of the Public
33Resources Code).

34(n) If permitted by local ordinance, nothing in this section shall
35be construed to prohibit a city, county, or city and county from
36granting a density bonus greater than what is described in this
37 section for a development that meets the requirements of this
38section or from granting a proportionately lower density bonus
39than what is required by this section for developments that do not
40meet the requirements of this section.

P18   1(o) For purposes of this section, the following definitions shall
2apply:

3(1) “Development standard” includes a site or construction
4condition, including, but not limited to, a height limitation, a
5setback requirement, a floor area ratio, an onsite open-space
6requirement, or a parking ratio that applies to a residential
7development pursuant to any ordinance, general plan element,
8specific plan, charter, or other local condition, law, policy,
9resolution, or regulation.

10(2) “Maximum allowable residential density” means the density
11allowed under the zoning ordinance and land use element of the
12 general plan, or if a range of density is permitted, means the
13maximum allowable density for the specific zoning range and land
14use element of the general plan applicable to the project. Where
15the density allowed under the zoning ordinance is inconsistent
16with the density allowed under the land use element of the general
17plan, the general plan density shall prevail.

18(p) (1)  Except as provided in paragraphs (2) and (3), upon the
19request of the developer, a city, county, or city and county shall
20not require a vehicular parking ratio, inclusive of handicapped and
21guest parking, of a development meeting the criteria of subdivisions
22(b) and (c), that exceeds the following ratios:

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

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

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

26(2) Notwithstanding paragraph (1), if a development includes
27the maximum percentage of low- or very low income units
28provided for in paragraphs (1) and (2) of subdivision (f) and is
29located within one-half mile of a major transit stop, as defined in
30subdivision (b) of Section 21155 of the Public Resources Code,
31and there is unobstructed access to the major transit stop from the
32development, then, upon the request of the developer, a city,
33county, or city and county shall not impose a vehicular parking
34 ratio, inclusive of handicapped and guest parking, that exceeds 0.5
35spaces per bedroom.begin insert For purposes of this subdivision, a
36development shall have unobstructed access to a major transit
37stop if a resident is able to access the major transit stop without
38encountering natural or constructed impediments.end insert

39(3) Notwithstanding paragraph (1), if a development consists
40solely of rental units, exclusive of a manager’s unit or units, with
P19   1an affordable housing cost to lower income families, as provided
2in Section 50052.5 of the Health and Safety Code, then, upon the
3request of the developer, a city, county, or city and county shall
4not impose a vehicular parking ratio, inclusive of handicapped and
5guest parking, that exceeds the following ratios:

6(A) If the development is located within one-half mile of a major
7transit stop, as defined in subdivision (b) of Section 21155 of the
8Public Resources Code, and there is unobstructed access to the
9major transit stop from the development, the ratio shall not exceed
100.5 spaces per unit. begin delete For purposes of this paragraph, a development
11shall have unobstructed access to the major transit stop if a resident
12is able to access the major transit stop without encountering natural
13or constructed impediments.end delete

14(B) If the development is a for-rent housing development for
15individuals who are 62 years of age or older that complies with
16Sections 51.2 and 51.3 of the Civil Code, the ratio shall not exceed
170.5 spaces per unit. The development shall have either paratransit
18service orbegin delete be locatedend deletebegin insert unobstructed access,end insert within one-halfbegin delete mile ofend delete
19begin insert mile, toend insert fixed bus route service that operates at least eight times
20per day.

21(C) If the development is a special needs housing development,
22as defined in Section 51312 of the Health and Safety Code, the
23ratio shall not exceed 0.3 spaces per unit. The development shall
24have either paratransit service orbegin delete be locatedend deletebegin insert unobstructed access,end insert
25 within one-halfbegin delete mile ofend deletebegin insert mile, toend insert fixed bus route service that operates
26at least eight times per day.

27(4) If the total number of parking spaces required for a
28development is other than a whole number, the number shall be
29rounded up to the next whole number. For purposes of this
30subdivision, a development may provide on-site parking through
31tandem parking or uncovered parking, but not through on-street
32parking.

33(5) This subdivision shall apply to a development that meets
34the requirements of subdivisions (b) and (c), but only at the request
35of the applicant. An applicant may request parking incentives or
36concessions beyond those provided in this subdivision pursuant
37to subdivision (d).

38(6) This subdivision does not preclude a city, county, or city
39and county from reducing or eliminating a parking requirement
40for development projects of any type in any location.

P20   1(7) Notwithstanding paragraphs (2) and (3), if a city,begin delete county orend delete
2begin insert county,end insert city andbegin delete countyend deletebegin insert county, or an independent consultantend insert has
3conducted anbegin delete area-wide or jurisdiction-wideend deletebegin insert areawide or
4jurisdictionwideend insert
parking study in the last seven years, then the
5city, county, or city and county may impose a higher vehicular
6parking ratio not to exceed the ratio described in paragraph (1),
7based upon substantial evidence found in the parkingbegin delete study
8conducted by an independent consultant,end delete
begin insert study,end insert that includes, but
9is not limited to, an analysis of parking availability, differing levels
10of transit access, walkability access to transit services, the potential
11for shared parking,begin delete andend delete the effect of parking requirements on the
12cost of market-rate and subsidizedbegin delete developments.end deletebegin insert developments,
13and the lower rates of car ownership for low- and very low income
14individuals, including seniors and special needs individuals. The
15city, county, or city and county shall pay the costs of any new study.end insert

16 The city, county, or city and county shall makebegin delete findingsend deletebegin insert findings,
17based on a parking study completed in conformity with this
18paragraph,end insert
supporting the need for the higher parking ratio.

begin delete
19

SEC. 3.  

If the Commission on State Mandates determines that
20this act contains costs mandated by the state, reimbursement to
21local agencies and school districts for those costs shall be made
22pursuant to Part 7 (commencing with Section 17500) of Division
234 of Title 2 of the Government Code.

end delete
24begin insert

begin insertSEC. 3.end insert  

end insert
begin insert

No reimbursement is required by this act pursuant to
25Section 6 of Article XIII B of the California Constitution because
26a local agency or school district has the authority to levy service
27charges, fees, or assessments sufficient to pay for the program or
28level of service mandated by this act, within the meaning of Section
2917556 of the Government Code.

end insert


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