Ordinance 1569•
ORDII~NCE NO. 1569
AN OtiDII~tJCE OF THE QTY COfAiCII, OF ~ C1TY OF CUPFXTI?t0
ADOPTING AND IMpI.IIgNTII4G 2HE STATE DII;STTY BONUS IAW
FhiIItFAa, Government Code Section 65915 requires that local govesTmsrtts
adopt an ardinanne iaQlempnting the State Density Honus Iaw which includes
a prooedurg far evaluating preliminary applications and to specify which
oonoessions will ba offered developers of qualified projects; and
~s an Initial study has been prepared on the ordinance, as
the Califa~asia Fhvisormpntal Quality Act anxi the Planning
Commission of the City of Qnpertino held a public hearisg for
oonsideratian oL the adoption of a Density Bonus ordinance arri found
that: (1) a Negative Declaration is appropriate as no significant
envira~nental i~acts have been identified to be associated with the
project whidi cannot be mitigated; (2)• the pr~~osed ordinarx~e is
ocnsistent with state *-~,;,,~.,ra F~-rte±^~ to the slats Density eotnis
Iaw; (3) the proposed Ordinance will rot be detrimental to the health,
safety. pesos, mcsals, comfort, or general welfare of persons residing or
working in the neic~:borhood of such proposed use, ar be detrimental ar
injurious to property and improvements in the neighbortsood ar to the
general welfare of the City; and (4) the proposed Ottiinanoe facilitates
meeting the City's share of regional housi~ neecLs for lower-inoc~e and
very low-income households and would catntr'i2ute to oamliance with housing
element law as well as density bonus law;
NOW, ~tF1U[2E, the City Council of the City of Cupeitiro does ordain
as follows:
SFlCTION I. C2~apter 19.21.080 - 19.21.140 is hereby added to Title 19
of the Qrpextino Municipal Coda to read as follows:
19.21.080 Purpose
Zhe Density Horns Ordinance is intended to oa~Qly with the State
Density Bontis Law, Goverrnoent Coda Section 65915, which pacovides that a
local goverrmient small grant a density bnxws and an additional oonoessian,
ar f;*+a*+r;A»y equdvalent incentive(s), to a developer of a housing
developmernt agreeing to construct a specified percentage of housi~ far
lower inooma huseholds, very low innclt~e households or senior citizens.
19.21.090 Definitions ,
As used in this chapter, the following lentos shall have the following
meanings unless otherwise indicated frtm the context:
A. "Housira bevel " shall mean one as more grasps of projects with
residential units con,tructed in the planned developnetnt of the City.
B. "Affordable Units" shall mean bossing units in which the rent does not
exceed 25 percent oP the HW in>oaae limits far lower arri very low
innc~oe households far Santa Clara Cannty adjusted for hou<~~old size.
City Council No. 1569
Page -2-
e. "~rygity Bot>tts" shall mean an increase in the txanber of dwelling units
authorized far a particular parcel of land beyond the aaxitnnn allowed
by the General Plan ratx3e specified a~n the land Use Map of the City of
Cupertino General Plan as of the date of the project application.
D. "Hou.lehQld 'IYfle" shall hats whetlser the oa~artts of the housing units
are very law irnome, lower itsoane ar seniar citizens.
g, ^Qp" shall mean a benefit offered by the City to facilitate
oasstxuctian of eligible projects as defined by the prcvisians of this
ordinance. Benefits may include, but are not limited to, paciarity
prcnoessinq, fee defe*.sssetsts and waivers, grantitsg of variatsce~a, and
relaxation of otlsezwise applicable permit oonditiass.
g, ^rcx,ipr I71oQIle Household" shall tllean a household whose gross i71t7[7I1@ is
as established by Health and Safety Code Section 50079.5.
G, "ygty Igw Incrxne_ Household" shall mean a tsauseltold whose gross irsc+ame
is as established by Health and Safety Code Section 50105.
H. "$ersiar Citizens" shall mean:
1. Per'sarss at least 62 years of age; ar
2. Per'scxss at least 55 years of age in a seniar citizen housing
development, in aooorrlarsca~ with state std federesl law.
I, '!sp.,~ar Ct~~en h,+ ~" shall a-ean:
1. Govetnoertt subsidized housing units far Senior Citizens;
2. Housing. intended far, and solely ooatpied by, pez'srns at least 62
yd's ~ ~i ar'
3. }iotssiisg aonsistirsg of at least 150 smite in which 80 peroetst of
the units haws at least ass per9an aged 55 ar older std whic3s
provide special facilities and services desicgsed fa' seniors.
Eligibility for a density borsus ar other oonoessiats far Seniar Citizen
Unite must be in o:YSformity with state and federal laws goverrsirg
senior housing projects.
J. "morrmically Feasible" shall mean when a housing project can be built
with a reasonable rate of return. 'Ilse housing developer's litsancial
ability to build the project shall not be a factor.
19.21.100 Applicability
City Council Otdir~anoe No. 1569 •
Page -~-
A. All housiry deaeloEanents greater than 5 units (e~acludirg density bonus
units). are eligible !or one density bonus of at least z5 percent, and
an additional oonoession, to developers agreeing to construct at
least:
1. 202 - of the units far Inwer Ire Households, ar
2. 10~ - of the units for Very Iow Inoaos Households, ar
3. 502 - oP the units for Senior Citizens, unless prohibited by
..state and/ar lederal law.
B. If a developer agrees to'aonstruct ~ 20 pez+eeJrt of the total units
far lawet'-inoome households and 10 peroertt of the fatal units for very
law invam households, the developer remains entitled to only one
density borw.s and an additional concession. However, in suds
ci•ram~stanoe, the City, at its discretion, may grant more than one
density bonus.
C. Projects with Affordable Units which meet the require~rts set forth
in this dsapter are entitled to a density bonus and additional
oor~sian, unless:
The City Council adopts a written finding that the additional
oor°-oe.,sion is rot required to make the units affordable.
D. Nothing in this CY:apter limits the City's 'riot to deny an affordable
housing project if the City Council finds, based an substantial
evidence, any ~ of the following:
1. the city has adopted an adequate housing element, and the project
is rat needed for the City 1:o meet its share of the regional
housing steed of lower inc®e housing.
2. Zhe ,project as proposed would have a specific, adverse impact upon
.the public health or safety which carQtat be satisfactorily
mitigated without rendering it iataffordable to lower income
households.
3. Ztte dental of the proje~^t ar iaQositian of oorrlit3ons is required
in arsler to comply with state or federal law aryl there is no
feasible method to cxnply without rendering the development
unaffordable to lower incase ttouse2tolds.
4. Appx+oval of the development project world fr~crea-sa the
oatoerttratian of lower income households in a neic~tborttood that
already has a disproportionately hicglt number of lower income
ttousettolds.
5. ate development project is proposed rn lard zoned far agriculture
ar resaa~aa preaeivatian which is surratrded an at least two aides
by lard being used Par agricultural tuc resota>re preservation
putZ~oses, and which does not have adequate water or wastewater
facilities to serve the project.
•
City Council Ordinance No. 1569
Page -4-
6. ~e development project is inconsistent with the City's general
plan land use designation as it existed an the date the
application was deemed oorrQlete, aryl the City has adopted a
housing element p~ssuant to state law.
E. Nothing in this dsapter limits the City's right to decry a Senior
Citizen housing project if the City finds, based on substantial
evidence, that the project mould haws, a specific, adverse impact upon
the public health ar safety; aryl there is no feasible method to
satisfactorily mitigate ar avoid the adverse impac.•t identified.
19.21.110 Lbnoessio~
'12re State-mandated oonoessim will ba selected fry the following
list:
A. A reduction in site devel:opaent standards ar a modification of the
requis+ements of the, Zonis ordinance. Far applications involving the
modification of zoc-ing or developsierrt standards, the housing developer
shall show that the waiver or modification is necessary to make the
housirrq units eoorranically feasible. Permissible incentives include,
but are not limited to:
1. Reduction of parking *caqu;~"*a•
2. Reduction of open space requirements.
3. Reduction of setback requirements.
4. Approval of mixed use zoairg in oonjurrctian with the housing
~~+rh oe the cost of the fhaisirg deop itarand if the oaamrciall
office, industrial,. ar other land uses are caiQatible with the
housing Protect aril the existiry ar pianrred development in the
area where the la~oposed housing project will be located.
g, other regulatory oorroessions proposed by the developer ar the City,
wlridi result in identifiable cost reductions. permissible oocaessians
include, but are not limited to:
1. Reduction of park dedication fees.
2. Reduction of application ar cortistruction permit fees.'
3. Provision of tax exert financing or other financial assistance as
approved by the City Council.
C. A housing d+awalopment Mich provides Affordable Units Host show that
the requested concessions directly affect fire eoafanic feasibility of
including the Affordable Units in the prcoject.
City Cauicil Ordinance No. 1569
Page -5-
19.21.120 General Requirements
A. Affordable units mast remain affordable far 30 years if both a density
bows and an additional eq~oessian are granted. Zhesa units shall
remain atfart9able for a lamer period of time if required by the
oaLSGnictim ar rnc~r'tgaga financing assistance program, mortgage
insuzanoa procgam, ox' rental subsidy prcYxgam. I! only a density bonus
is granted, the Affordable Units shall remain affordable far 10 years.
B. First priarity for the Affordable Units will be given to irriividuals
.who reside, cork, go to sdtool, ar have family in the City of
~•
C. A Master Regulatory Agreement shall be made bet~re~+.n the developer and
the City which indicates the hatsehold type, number, location, size
artd cortst>;tictinrt Ld~edulity of all Affordable Units aM swc3t
information as shall be required by the City far the purpose of
daterminirg the developer's ompliance with this c2~apter.
D. Affordable units in a project and phases of a project shall be
oonsttiycted ocixatrrently with ar prior to the oa~trvctiat of mariu;t
rata units.
E. Affardabla Units shall be provided as follows:
1. Affordable ibtits shall ba dispersed throtxlhout the project.
2. Affordable Units shall be identical with the design of arty market
rate rental units in the project with the following ~ooeption:
Rech~ctictt of intter'iar amenities far Affordable Units will be
.permitted upon prior approval by the City Council as rteoessary to
retain project affazslability.
F. F~o:r purposes of calailatirg a density bonus, the r+esiderttial units do
nvt have to ba based upon individual subdivision maps ar parcels. The
detvsity bonus shall be permitted in geographic arras of the housing
development other than the areas where the Affordable Units are
.located.
G. ~e developer shall suit a project financial report (pro fartnz) to
allow the City to evaluate the linattcial need for the State mandated
additional irtoerttives. The City may retain a c~onsultarrt to review the
financial z+eport. The oast of the consultant stroll ba borne by the
developer with the following e~aoeption:
If the applicant is a naiprotit organization, the cost of the
oorttiultarrt may be paid by the City apart Prior' approval of the City
C1~rrtcil.
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City Council c~d.inartce No. 1569
Page -6-
19.21.130 ~ ~' ~oj~ With Affordable Units:
A. All Affardable Lktits shall be ooc~q~ied ~ lion 19a21~0(~~Zt~e
in the written agreement required
developer's obligation to maintain these twits as affordable housing
shall be eviderwed by the !taster ttegulatory Ag['aemertt which shall be
reoazded as a Deed Restriction creating with the land.
B. 4tnse twits targeted far Iaa+er'-Itwarie Households shall be affordable
at a r+ertt that dog cwt exceed 25 percent of the H.U.D. irwam limits
far IAwer Irwoate Households Par Santa Clara Canty adjusted for
household size.
C, qty ratite targeted far Very Iaw-Inccais }iouseholds shall be
affordable at a rent that does cwt exceed 25 Percent of the H.U.D.
irtcaan limits far Very Iaw Irwome ttrusettclds for ~~ Clara CaIItty
adjusted far household size.
D. Prior to the r+elrtal of arty Affordable Unit, the City ar its designee,
shall verify the eligibility of the ~ectiv~e tenant. Rite owner
shall obtain and maintain an file oert.ificatiatis by eadt household.
Cartificatirn shall be obtained immediately prior to ini~~oo ~anc-Y
by eadi household and annually thereafter, in the farm the
City ar its designee. Ztte owner shall obtain updated farms for each
harsahold an request by the City, but in no event less frequently than
once a 1Tte owner shall „~inrai~ omplete, accurate and ascent
~,~ ~ ain~,e t0 the housing development and w111 permit any duly
authorized rrtative of the City to inspect the reoar'ds
pertaining to the Affordable Units and ooaapants of these twits.
E. ~n City may establish fees associated with the settiry trp arri
matitarirg of Affordable Units.
F. Ztte owner shall submit an artt><ral report to the City, on a form
~~ ty the City. 41te report shall incltde far eac3t Affordable
Unit the rent, irxxme, and family size of the household ooatpyinq the
tacit.
G. Zhe owner shall pzwi+de to the City arty additiortal• irtformatian
rmquirtd by tits City to instse the long-term affordability of the
Affordable Units by eligible ltousettolds.
19.21.140 ApQli:ont3m Prooedtrr's
City council Ordinance No. 1569
Page -7-
A. A developer may submit to the Planni7r3 D~ar'tmertt a preliminazy
far the development of haisinq gusuant to this chapter priar
lsubmittal of any formal applicatim. 713e City shall, within 90
aays or receipt of a written proposal, notify the housing developer in
writing o! its local density prooedtu.~es. X39 City shall es~ltan
procedures !ar waiving ar modifying dev+elopaerlt and zoning standards
which would otherwise intlibit the utilization of tha density bonus at
a partiwlar site. Rtlese prooedtlres shall include, but not be limited
to, suds items as minimmt lot size, side yard setbacks, and plaoelnent
of public works inprc~ovements. Z23a housing developer shall show that
the requested waiver ar modification is necessary to make the
Affamdable Units eoonanically Feasible.
H. Faunal applicatirn shall follow the review porooegs as set forth Ear
poi{tips Use permits in Chapter 19.28 of tlye Cupertino 2~Dunicipal
Dods established by the City and shall provide additional infarmaticn
as specified fn this chapter, specifically:
~,~r- ,xu+~~+xa . densi
1. Provide a written st~raor+~~ ~.--j- h'
irxxease, incentive requested and the r~ber, type, location, size
and oonstktyction scheduling of all dwelling twits.
2. Sutmit a project financial report (pro forma). as rer~ed•
3. Any other information requested by the Director of Ctamurlity
Developoertt.
Section II. Publication
Zhe city cleric shall cause this ordinance to be published at least
once in a newspaper of general circulation published and circulated in the
City within fifteen (15) days after its passacle, in aocordar-oe with
Section 36933 of the Governoent Code: shall oe2tify to the adoptiat of
this CQdinarloe and shall cause this ozd,inarxia and her certification,
together with proof o! publicatim, to be entered in the Hook of
Ordinarnps of the Oalncil of this City.
IItIIil]OUL~D at a regular meeting bf thB City Cotnicil this
19th day of ~Yyygq 1991, and FI~IItCI~D 8t a regular meeting of the City
Council 1231,8 ~rSL day ofSERLEmbe~991, by the lollowi.tlq vote:
AYFS: Goldman, Rogera, Sorensen, Szabo, Koppel
~~; None
~~.~ None
A8.4R~: .None
~~1 ~ APPimVFD:
City Clerk , Deputy Yom. ~h' o