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Ord 701 ORDINANCE NO, 701 AN ORDINANCE OF THE CITY OF POWAY, CALIFORNIA, DELETING SECTION 17.08.20 AND AMENDING SECTIONS 17.26.100, 17.26.200(B)(1), 17.26AOO(A), 1739.010, 17.39.020(G)(3), 17.39.020(G)(4), 17.39.020(H) AND 1739.020(1) AND ADDING ARTICLE V TO CHAPTER 1726, OF TITLE 17 OF THE POWAY MUNICIPAL CODE ESTABLISHING AFFORDABLE HOUSING INCENTIVESAND RELATED MINOR CHANGES (ZONING ORDINANCE AMENDMENT 09-03) WHEREAS, Government Code Section 65915 requires cities to adopt an ordinance that is consistent with State law and provides a procedure to grant density bonuses and other incentives to encourage the construction of very low-, lower-, and moderate-income housing and senior housing; and WHEREAS, the City Council seeks to amend Title 17 (Zoning) of the Poway Municipal Code to establish affordable housing incentives that comply with State law; and WHEREAS, this amendment also requires minor changes to other sections of Title 17 (Zoning) of the Poway Municipal Code; and WHEREAS, adoption of this ordinance is consistent with the City of Poway 2005- 2010 Housing Element of the General Plan in that it will implement Program 30 of the Element; and WHEREAS, on December 1, 2009 and December 15, 2009, the City Council held a duly advertised public hearing to solicit comments from the public, both pro and con, relative to this ordinance. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF POWAY DOES ORDAIN AS FOLLOWS: Section 1: An Environmental Initial Study was completed on the project and it was determined that the approval of Zoning Ordinance Amendment 09-03 will not have a significant adverse impact on the environment since potential impacts are less than a level of significance, The City Council therefore approves a Negative Declaration (ND) for the project. Section 2: Section 17.08.200 of the Poway Municipal Code is hereby deleted. Section 3: Section 17,26,100, Definitions, of the Poway Municipal Code is amended to add the following at the beginning of this section: As used in this Article: Section 4: Section 17.26,200(B)(1) of the Poway Municipal Code is amended to read as follows: B. Development Incentives. 1. Any development that includes inclusionary units shall be entitled to a density bonus and Concessions or Incentives as allowed pursuant to the affordable housing incentives contained in Article V of this Chapter. Ordinance No, 701 Page 2 Section 5: Section 17.26.400(A) of the Poway Municipal Code, is amended to read as follows: A. An applicant of any project subject to the requirements of this Article may appeal to the City Council for a reduction, adjustment, or waiver of the requirements based upon the absence of any reasonable relationship or nexus between the impact of the development and either the amount of the fee charged or the inclusionary requirement. Section 6: Chapter 17.26 of the Poway Municipal Code is amended to add the following Article V, Affordable Housing Incentives: Article V. Affordable Housing Incentives 17.26.600 Purpose and general plan consistency. It is the goal of the City to provide adequate and appropriate housing opportunities for the needs of, and affordable to, current and future residents, The purpose of this Article is to implement the housing element of the general plan; implement Sections 65915 through 65917 of the California Government Code; and provide incentives to developers for the production of housing affordable to very low-, lower-, and Moderate- income households, and senior citizens and for the provision of child care facilities. 17.26.610 Definitions As used in this Article: "Affordable Housing Cost" means the Allowable Housing Expenses paid by a qualifying household that does not exceed a specified fraction of the gross monthly income, adjusted for household size and as established in Section 50052.5 of the California Health and Safety Code, "Affordable Rent" means the allowable rental housing expenses paid by a qualifying household that does not exceed a specified fraction of gross monthly income adjusted for household size and as established by Section 50053 of the California Health and Safety Code. "Allowable Housing Expense" means the total monthly or annual recurring expenses required of a household to obtain shelter. For a for-sale unit, Allowable Housing Expenses include loan principle, loan interest, property and mortgage insurance, property taxes, homeowner's association dues and a reasonable allowance for utilities, For a rental unit, Allowable Housing Expenses include rent, and a reasonable allowance for utilities. "Child Care Facility" means a child day care facility other than a family day care home, including, but not limited to, infant centers, preschools, extended day care facilities, and school age child care centers. Ordinance No. 701 Page 3 "Concession" means any ofthe following: 1, A reduction in site Development Standards or a modification of zoning code requirements or architectural design requirements that exceed the minimum building standards approved by the California Building Standards Commission as provided in Part 2,5 (commencing with Section 18901) of Division 13 of the California Health and Safety Code, including, but not limited to, a reduction in setback and square footage requirements, and in the ratio of vehicular parking spaces that would otherwise be required that result in identifiable, financially sufficient and actual cost reductions. 2, Approval of mixed use zoning in conjunction with the housing project if commercial, office, industrial, or other land uses will reduce the cost of the Housing Development and if the commercial, office, industrial, or other land uses are compatible with the housing project and the existing or Planned Development in the area where the proposed housing project will be located, 3, Other regulatory Concessions or Incentives proposed by the applicant or the City that result in identifiable, financially sufficient, and actual cost reductions. "Condominium Project" means a project as defined by California Civil Code Section 1351, subdivision (f) as the same may be amended from time to time, or any state law replacing Section 1351, subdivision (f). "Density Bonus" means a density increase over the otherwise Maximum Allowable Residential Density as of the date of application by the applicant to the City. The amount of Density Bonus to which the applicant is entitled shall vary in accordance with applicable provisions of this Article. "Development Standard" means any site or construction condition, including, but not limited to, a height limitation, a setback requirement, a floor area ratio, an onsite open space requirement, or a parking ratio that applies to a residential development pursuant to any ordinance, general plan element, specific plan, charter, or other local condition, law, policy, resolution, or regulation. "Housing Development" means a development project for five or more residential units and includes a subdivision or planned community or Condominium Project, approved by the City, consisting of residential units or unimproved residential lots and includes either: (1) a project that substantially rehabilitates and converts an existing commercial building to residential use, or (2) the substantial rehabilitation of an existing multifamily dwelling, as defined in Government Code Section 65863.4(d), where the result of the rehabilitation would be a net increase in available residential units. Incentive. See "Concession," "Lower-income Household" means households of lower income as defined in Section 50079,5 of the California Health and Safety Code. At the time of the adoption of this Article, a household whose median income is equal to or less than 80 percent of the area median income is Lower Income, and is considered to be able to afford rent that does not exceed 30 percent of 80 percent of the area median income. Ordinance No. 701 Page 4 "Maximum Allowable Residential Density" means the density allowed under the zoning ordinance and land use element of the general plan, or if a range of density is permitted, means the maximum allowable density for the specific zoning range and land use element of the general plan applicable to the project. Where the density allowed under the zoning ordinance is inconsistent with the density allowed under the land use element of the general plan, the general plan density shall prevail. "Moderate-income Household" means households of moderate-income as defined in Section 50093 of the California Health and Safety Code. At the time of adoption of this Article, a household whose median income is equal to or less than 120 percent of the area median income is Moderate-Income, and is considered to be able to afford rent that does not exceed 30 percent of 120 percent of the area median income. "Planned Development" means a project as defined by California Civil Code Section 1351, subdivision (k) as the same may be amended from time to time, or any state law replacing Section 1351, subdivision (k). "Qualifying Resident" means a resident as defined by California Civil Code Section 51.3 as the same may be amended from time to time, or any state law replacing Section 513, "Senior Citizen Housing Development" means a development as defined by Sections 51.3 and 51,12 of the California Civil Code, or mobilehome park that limits residency based on age requirements for housing older persons pursuant to Section 798.76 or 799,5 of the California Civil Code. "Specific Adverse Impact" means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified written public health or safety standards, policies, or conditions as they existed on the date the application was deemed complete. Inconsistency with the zoning ordinance or general plan land use designation shall not constitute a specific, adverse impact upon the public health or safety. "Target Dwelling Unit" means a dwelling unit that will be offered for rent or sale exclusively to and which shall be affordable to the designated income group or qualified resident, as required by this Article. "Target Income Level" means the income standards for very low-, lower- and moderate- income levels within San Diego County as determined annually by the U.S. Department of Housing and Urban Development. "Very Low-income Household" means households of very low-income as defined in Section 50105 of the California health and Safety Code. At the time of the adoption of this Article, a household whose median income is equal to or less than 50 percent of the area median income is Very Low-Income, and is considered to be able to afford rent that does not exceed 30 percent of 50 percent of the area median income. 17.26,620 Administration A. Applicability, The provisions established by this Article apply to all applications for Density Bonuses and Concessions and Incentives made pursuant to Section 65915 of the California Government Code. Ordinance No. 701 Page 5 B. Application, All projects that propose to utilize the Density Bonus, Concession or Incentive provisions of this Article shall be required, at a minimum, to submit an application for a conditional use permit or other discretionary permit as required by this title. The conditional use permit shall be utilized to waive any Development Standards that would otherwise serve to prohibit the implementation of this Article. The granting of a Density Bonus, Concession .or Incentive consistent with this Article shall not be interpreted, in and of itself, to require a general plan amendment, zoning change, or other discretionary approval. In addition to the standard application submittal requirements, the following additional information shall be provided with any Density Bonus request: 1. The total number of requested housing units above the amount allowed by the existing zoning and any additional Incentives being requested. 2. The number of affordable units by number of bedrooms and income group to be provided by the project. 3. The term of affordability for the affordable units. 4. The standards for maximum qualifying incomes for affordable units. 5, The process to be used to verify tenanUhomeowner incomes 6. The process for monitoring the continued affordability of the units, 7. How vacancies will be marketed and filled. 8, Restrictions and enforcement mechanisms in the event of failure to maintain affordability provisions. 9, The specific Concession(s) or Incentive(s) the applicant is seeking, information regarding that Concession(s)or I ncentive(s) , and to request, if desired, to meet with the City regarding the Concession or Incentive request. 10.Any other provisions deemed necessary by the City. 17.26.630 Qualifications for Density Bonus and Concession(s) or Incentive(s). A, The City shall grant one Density Bonus as specified in PMC 17.26,640, and Concessions or Incentives as described in PMC 17,26,680, when an applicant seeks and agrees to construct a Housing Development, excluding any units permitted by the Density Bonus awarded pursuant to this Article, that will contain at least one of the following: 1. Five percent of the total units of a Housing Development for Very Low~income Households, 2. Ten percent of the total units of the Housing Development for Lower-income Households 3. A Senior Citizen Housing Development. Ordinance No. 701 Page 6 4. Ten percent of the total units of a Condominium Project or Planned Development as affordable housing units affordable to Moderate-income Households, provided that all units in the development are offered to the public for purchase subject to the restrictions specified in this Article. B. As used in subsection A of this section, the term "total units" does not include units permitted by a Density Bonus awarded to this section or any other local law granting a greater Density Bonus. C. Each applicant who requests a Density Bonus pursuant to this Article, shall elect whether the bonus shall be awarded on the basis of subsection A (1), (2), (3), or (4) of this section. Each Housing Development is entitled to only one Density Bonus, which may be selected based on the percentage of either very low-income affordable housing units, lowercincome affordable housing units or moderate-income affordable housing units, or the development's status as a Senior Citizen Housing Development. Density Bonuses from more than one category may not be combined. 17,26.640 Specified Density Bonus percentages, A. Only Housing Developments consisting of five or more dwelling units that comply with PMC 17,26.630 are eligible for the Density Bonus percentages provided by this Article, For the purposes of this section, Density Bonus shall mean a density increase over the otherwise maximum allowable residential density as of the date of application by the applicant to the City. The Density Bonus is based on the percentage of affordable units as indicated in the tables in this section. The percentage of affordable units shall be determined prior to applying the Density Bonus. The applicant may elect to accept a lesser percentage of Density Bonus, B. Density Bonus for Very Low-Income Units. If the Housing Development provides five to eleven percent of the total housing units for Very Low-income Households, the Density Bonus shall be calculated as follows: Densitv Bonus for Very Low-Income Units Percentage of Very Low-Income Units Percentage Density Bonus over the Maximum Allowable Residential Densitv 5 20 6 22,5 7 25 8 275 9 30 10 32.5 11 35 C. Density Bonus for Lower-Income Units, If the Housing Development provides ten to twenty percent of the total housing units for low-income households, the Density Bonus shall be calculated as follows: Ordinance No. 701 Page 7 Density Bonus for Lower-Income Units Percentage of Lower-Income Units Percentage Density Bonus over the Maximum Allowable Residential Densitv 10 20 11 21,5 12 23 13 24.5 14 26 15 27.5 16 29 17 30.5 18 32 19 335 20 35 D. Density Bonus for Senior Citizen Housing Development. If the development is a Senior Citizen Housing Development the Density Bonus shall be twenty percent of the number of senior housing units. E. Density Bonus for Moderate Income Units. If the Housing Development provides ten to forty percent of the total housing units of a Condominium Project or Planned Development affordable to Moderate-income households and all the units of the development are offered to the public for purchase subject to the restrictions specified in PMC 17.26,710, the Density Bonus shall be calculated as follows: Density Bonus for Moderate-Income Units Percentage Moderate-Income Units Percentage Density Bonus over the Maximum Allowable Residential Densitv 10 5 11 6 12 7 13 8 14 9 15 10 16 11 17 12 18 13 19 14 20 15 21 16 22 17 23 18 24 19 25 20 26 21 27 22 28 23 29 24 Ordinance No. 701 Page 8 30 25 31 26 32 27 33 28 34 29 35 30 36 31 37 32 38 33 39 34 40 35 F. An applicant may elect to accept a lesser percentage of Density Bonus than that to which the applicant is entitled to under this Article. All Density Bonus calculations resulting in a fractional number shall be rounded upwards to the next whole number. G. For the purpose of calculating a Density Bonus, the residential units shall be on contiguous sites that are the subject of one development application, but do not have to be based upon individual subdivision maps or parcels. The Density Bonus shall be permitted in geographic areas of the Housing Development other than the areas where the units for the Lower-income Households are located. 17.26.650 Donation of Land for Very Low-income Housing. A Density Bonus for Land Donation. When an applicant for a tentative subdivision map, parcel map, or other residential development approval donates land to the City or another developer that is to be used to develop housing for very low-income households, the applicant shall be entitled to Density Bonus above the otherwise Maximum Allowable Residential Density for the entire residential development as noted in the table below, provided the conditions contained in PMC 17.26.650(B) are met: Density Bonus for Land Donation Percentage Very Low-Income Units Percentage Density Bonus over the With Land Donation Maximum Allowable Residential Density 10 15 11 16 12 17 13 18 14 19 15 20 16 21 17 22 18 23 19 24 20 25 21 26 22 27 23 28 24 29 Ordinance No, 701 Page 9 Density Bonus for Land Donation Percentage Very Low-Income Units Percentage Density Bonus over the With Land Donation Maximum Allowable Residential Density 25 30 26 31 27 32 28 33 29 34 30 35 The Density Bonus noted in the table above shall be in addition to any Density Bonus granted pursuant to PMC 17.26.630, up to a maximum combined density increase of thirty-five percent, if an applicant seeks both the increase pursuant to this section and PMC 17.26.630. All density calculations resulting in fractional units shall be rounded up to the next whole number. Nothing in this subsection shall be construed to enlarge or diminish the City's authority to require an applicant to donate land as a condition of development. B. An applicant shall be eligible for the Density Bonus described in Section A above if all of the following conditions are met: 1. The applicant donates and transfers land no later than the date of approval of the final subdivision map, parcel map, or residential development application, 2, The developable acreage and zoning classification of the land being transferred are sufficient to permit construction of units affordable to Very Low-income 3, Households in an amount not less than ten percent of the number of residential units of the proposed development. 4. The transferred land is at least one acre in size or of sufficient size to permit development of at least forty units, has the appropriate general plan designation, is appropriately zoned with appropriate Development Standards for development at the density described in Section 65583.2(c)(3) of the California Government Code, and is or will be served by adequate public facilities and infrastructure, 5. The transferred land shall have all of the permits and approvals, other than building permits, necessary for the development of the very low-income housing units on the transferred land, not later than the date of approval of the final subdivision map, parcel map, or residential development application, except that the local government may subject the proposed development to subsequent development review to the extent authorized by Section 65583.2(i) of the California Government Code if the design is not reviewed by the City prior to the time of transfer. 6. The transferred land and the affordable units shall be subject to a deed restriction ensuring continued affordability of the units consistent with PMC 17.26610, which shall be recorded on the property at the time of the transfer. 7. The land is transferred to the local agency or to a housing developer approved by the City. The City may require the applicant to identify and transfer the land to a developer. Ordinance No. 701 Page 10 8, The transferred land shall be within the boundary of the proposed development or, if the City agrees, within one-quarter mile of the boundary of the proposed development. 9, A proposed source of funding for the very low-income units shall be identified not later than the date of approval of the final subdivision map, parcel map, or residential development application. 17.26.660 Bonus and Incentives for Housing with Child Care Facilities. A. When an applicant proposes to construct a Housing Development that conforms to the requirements of PMC 17.26.630 and includes a Child Care Facility that will be located on the premises of, as part of, or adjacent to, the project, the City shall grant either of the following if requested by the developer: 1. An additional Density Bonus that is an amount of square feet of residential space that is equal to or greater than the amount of square feet in the Child Care Facility; or 2. An additional Concession or Incentive that contributes significantly to the economic feasibility of the construction of the Child Care Facility. B. A Housing Development shall be eligible for the Density Bonus or Concession described in this section if the City, as a condition of approving the Housing Development, requires all of the following to occur: 1. The Child Care Facility shall remain in operation for a period of time that is as long as or longer than the period of time during which the Density Bonus units are required to remain affordable pursuant to PMC 17.26.710. 2. Of the children who attend the Child Care Facility, the children of Very Low-income Households, Lower-income Households, or Moderate-income Households shall equal a percentage that is equal to or greater than the percentage of dwelling units that are required for Very Low-income Households, Lower-income Households, or Moderate- income Households pursuant to PMC 17.26.630. C, Notwithstanding any requirement of this section, the City shall not be required to provide a Density Bonus or Concession or Incentive for a Child Care Facility if it finds, based upon substantial evidence, that the community has adequate child care facilities. D, The application and review process for the provision of child care facilities and related Density Bonus or Concessions or Incentives is set forth in PMC 17,26.620. 17.26.670 Residential condominium conversions. A. The City shall grant either a Density Bonus of twenty-five percent or in-lieu Incentive(s) of equivalent financial value to an applicant or developer proposing to convert apartments to condominiums pursuant to Title 16, and who agrees to provide either of the following: 1, A minimum thirty-three percent of the total units of the Housing Development as restricted and affordable to persons and families of very low-, lower-, or moderate- Income; or Ordinance No. 701 Page 11 2. A minimum of fifteen percent of the total units of the Housing Development as restricted and affordable to persons and families of Lower-income Households. B, An applicant proposing to convert apartments to condominiums shall be ineligible for a Density Bonus or in-lieu Incentive(s) under this section if the apartments proposed for conversion constitute a Housing Development for which a Density Bonus or in-lieu Incentive(s) were previously provided under this Article. C, In determining the number of Density Bonus dwelling units to be granted pursuant to the standards of this section, the number of existing apartment units within the structure or structures proposed for conversion shall be multiplied by 0.25, Any resulting decimal fraction shall be rounded up to the next whole number. D. In determining the number of Target Dwelling Units to be reserved pursuant to the standards of this section, the number of existing apartment units within the structure or structures proposed for conversion shall be multiplied by 0.33 for moderate- or lower- income units or 0.15 for lower- or very low-income units, Any resulting decimal fraction shall be rounded up to the next whole number. E. The Density Bonus shall not be included when determining the number of housing units, which is equal to thirty-three percent or fifteen percent of the total units of the Housing Development. F. In cases where a density increase of less than twenty-five percent is requested, no reduction will be allowed in the number of Target Dwelling Units required. G. A Density Bonus housing agreement shall be made a condition of the Density Bonus approval. The Density Bonus housing agreement shall be consistent with PMC 1726 720 of this Article. H. Upon application by a developer pursuant to this Title, the final decision-making authority of the City shall grant either a Density Bonus and at least a Concession or Incentive, or in-lieu Incentive(s) of equivalent financial value to qualified lower-income and/or moderate-income Housing Developments unless specific findings are made pursuant to California Government Code Section 65589,5(d). I. The value of each Incentive will vary from project to project; therefore, additional Incentives or in-lieu Concession(s) or Incentive(s) shall be determined on a case-by-case basis. J, This section shall not limit or require the City to provide direct financial Incentives or publicly owned land for the Housing Development, or to waive fees or dedication requirements. All Concessions or Incentives are to be negotiated between the City and the developer. K. It is the exclusive prerogative of the City to offer in-lieu Concession(s) or Incentive(s) of equivalent financial value, based upon the land cost per dwelling unit, instead of a Density Bonus and at least one additional Incentive. L, Nothing in this section shall be construed to require the City to approve a proposal to convert apartments to condominiums. Ordinance No. 701 Page 12 17.26.680 Incentive(s) and Concession(s), A. An applicant for a Density Bonus may also submit to the City a proposal for specific Concession(s)or Incentive(s) in exchange for the provision of affordable housing units in accordance with this Article. All requests for Concessions or Incentives in association with applications for a Density Bonus are subject to PMC 17.26.630. Applicants may request a meeting with the City to discuss requests pursuant to this section. B, The City shall grant the Concession or Incentive requested by the applicant unless the City makes a written finding, based upon substantial evidence, of any of the following: 1. The Concession or Incentive is not required in order to provide for Affordable Housing Costs, as defined in Section 50052,5 of the California Health and Safety Code; or 2, The Concession or Incentive would have a Specific Adverse Impact upon public health and safety or the physical environment or on any real property that is listed in the California Register of Historical Resources and for which there is no feasible method to satisfactorily mitigate or avoid the Specific Adverse Impact without rendering the development unaffordable to very low-, lower- or Moderate-income households. 3. The Concession or Incentive would be contrary to state or federal law. C. If the conditions of PMC 17.26.630 are met by an applicant making a request pursuant to this section, the City shall grant the applicant the following number of Concessions or Incentives: 1. One Incentive or Concession for projects that include at least ten percent of the total units affordable to Lower-income Households, at least 5 percent for Very Low- income Households, or at least 10 percent for persons and families of moderate-income in a condominium or Planned Development. 2. Two Concessions or Incentives for projects that include at least twenty percent of the total units for Lower-income Households, at least ten percent Very Low-income Households, or at least twenty percent for persons and families of moderate-income in a condominium or Planned Development. 3. Three Concessions or Incentives for projects that include at least thirty percent of the total units for Lower-income Households, at least fifteen percent for Very Low-income Households, or at least thirty percent for persons and families of moderate-income in a condominium or Planned Development. The requirements to qualify for Concessions or Incentives are summarized in the following table: Ordinance No. 701 Page 13 Summary of Requirements to Qualify for Concessions or Incentives Income Category Percentage of Units needed to Qualify for Concessions or Incentives Very Low-Income 5% 10% 15% (rental) Lower-Income 10% 20% 30% (rental) Moderate-Income 10% 20% 30% (for-sale common interest development only) Allowable Number 1 2 3 of Incentives D. Nothing in this section shall be interpreted to require the City to grant a Concession or Incentive that has a Specific Adverse Impact upon health, safety, or the physical environment, and for which there is no feasible method to satisfactorily mitigate or avoid the Specific Adverse Impact. E. Nothing in this section shall be interpreted to require the City to grant a Concession or Incentive that would have an adverse impact on any real property that is listed in the California Register of Historical Resources. F, Nothing in this section shall limit or require the provisions of direct financial incentives for the Housing Development, including the provision of publicly owned land by the City, or the waiver of fees or dedication requirements. 17.26,690 Waiver or modification of Development Standards, A. An applicant may submit to the City a proposal for the waiver, modification or reduction of Development Standards that will otherwise physically preclude the construction of a development meeting the criteria of PMC 17.26.630 at the densities or with the Concession(s) or lncentive(s) permitted by this Article. The applicant may also request a meeting with the City to discuss such waiver, modification or reduction. B. In order to obtain the waiver, modification or reduction in Development Standards, the applicant shall show that the Development Standards will have the effect of physically precluding the construction of a Housing Development meeting the criteria of PMC 17.26.630, at the densities or with the Concessions or Incentives permitted by this Article. C. Nothing in this section shall be interpreted to require the City to waive or reduce Development Standards if the waiver or reduction would have a Specific Adverse Impact upon health, safety, or the physical environment, and for which there is no feasible method to satisfactorily mitigate or avoid the Specific Adverse Impact. D, Nothing in this section shall be interpreted to require the City to waive or reduce Development Standards that would have an adverse impact on any real property that is listed in the California Register of Historical Resources, or to grant any waiver or reduction that would be contrary to state or federal law. Ordinance No, 701 Page 14 E. A proposal for the waiver or reduction of Development Standards pursuant to this section shall neither reduce nor increase the number of Concessions or Incentives to which the applicant is entitled to pursuant to PMC 17.26.680. 17.26.700 Parking standards. A A developer may request that the parking standards list below by applied if the Housing Development meets any of the criteria in PMC 17.26.630. If requested, the City shall grant the following maximum parking ratios, inclusive of handicapped and guest parking, which shall apply to the entire development, not just the restricted affordable units, when requested by the developer: 1. Zero to one bedroom dwelling unit: one onsite parking space. 2. Two to three bedrooms: two onsite parking spaces. 3_ Four or more bedrooms: two and one-half parking spaces. B. If the total number of parking spaces required for a development is other than a whole number, the number shall be rounded up to the next whole number. For purposes of this section, a development may provided "onsite parking" through tandem parking or uncovered parking, but not through onstreet parking. C. These parking standards may be granted when requested by a developer even if no Density Bonus is requested provided that all the criteria of PMC 17.26,630 are met. 17.26.710 Continued affordability, A An applicant shall agree to, and the City shall ensure, continued affordability of all very low- and lower-income units that qualified the applicant for the award of the Density Bonus for a period of 30 years or a longer period of time if required by the construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy program. Rents for the very low- and lower-income Density Bonus units shall be set at an Affordable Rent. Owner-occupied affordable housing units shall be available at an Affordable Housing Cost. B. An applicant shall agree to, and the City shall ensure, that the initial occupant of moderate-income units that are directly related to the receipt of the Density Bonus in a Condominium Project in the Planned Development, are persons and families of moderate-income and that the units are offered at an Affordable Housing Cost. The City shall enforce an equity-sharing agreement, unless it is in conflict with the requirements of another public funding source law. The following shall apply to the equity-sharing agreement: 1. Upon resale, the seller of the unit shall retain the value of any improvements, the down payment, and the seller's proportionate share of appreciation. The City shall recapture any initial subsidy and its proportionate share of appreciation, which amount shall be used within five years for any of the purposes that promote home ownership as described in subdivision (e) of Section 33334.2 of the Health and Safety Code, Ordinance No. 701 Page 15 2, For purposes of this subsection, the City's initial subsidy shall be equal to the fair market value of the home at the time of initial sale minus the initial sale price to the Moderate-income household, plus the amount of any down payment assistance or mortgage assistance. If upon resale the market value is lower than the initial market value, then the value at the time of the resale shall be used as the initial market value. 3. For purposes of this subsection, the City's proportionate share of appreciation shall be equal to the ratio of the City's initial subsidy to the fair market value of the home at the time of initial sale. 17.26.720 Density Bonus, Incentive or Concession Housing Agreement Required A. Applicants/developers requesting a Density Bonus, Concession or Incentive shall demonstrate compliance with this Article by the preparation and approval of a Density Bonus, Incentive or Concession housing agreement (agreement). The terms of the agreement shall be subject to review by the Director of Development Services, the Director of Redevelopment Services and the City Attorney. B. Following execution of the agreement by the applicant and the City, the completed agreement, or memorandum thereof, shall be recorded. The conditions contained in the agreement shall be filed and recorded as a deed restriction on the parcel or parcels designated for the construction of target units at the time of final map recordation, or, where a map is not being processed, prior to issuance of building permits for such parcels or units, The agreement shall be binding upon all future owners and successors in interest for this property, which is the subject of the Housing Development application. C. At a minimum, the agreementshall include the following: 1. The total number of units proposed within the Housing Development, including the number of Density Bonus units and the number of target units; 2. A description of the household income group to be accommodated by the Housing Development, and the standards for determining the corresponding Affordable Rent or affordable sale price and housing cost; 3. The location, unit sizes (square feet) and number of bedrooms of target units; 4. Tenure of use restrictions for target units of at least thirty years; 5. A schedule for completion and occupancy of the target units; 6. A description of any additional Incentives and/or financial assistance being provided by the City; 7. A description of remedies for breach of the agreement by either party (the City may identify tenants or qualified purchasers as third party beneficiaries under the agreement); 8, Where applicable, tenure and conditions establishing rules and procedures for qualifying tenants, setting rental rates, filling vacancies, and operating and maintaining units for rental Target Dwelling Units; and Ordinance No. 701 Page 16 9. Other provisions to ensure implementation and compliance with this Article. D. In the case of for-sale Housing Developments, the agreement shall provide for the following conditions governing the initial sale and use of target units during the applicable use restriction period. 1. Target units shall, upon initial sale, be sold to and occupied by eligible very low-, lower-income, or, in the case of a condominium or Planned Development, Moderate- income households at an affordable sales price and housing cost, or to qualified senior citizen residents (i.e., maintained as senior citizen housing). 2, The initial purchase of each target unit shall execute an instrument or agreement, approved by the City Attorney, restricting the sale of the target unit in accordance with this Article during the applicable use restriction period, Such instrument or agreement shall be recorded against the parcel containing the target unit and shall contain provisions as the City may require ensuring continued compliance with this Article and the State Density Bonus law, E. In the case of rental Housing Developments, the agreement shall provide for the following conditions governing the use of target units during the use restriction period: 1. The rules and procedures for qualifying tenants, establishing Affordable Rent, filling vacancies and the proper management and maintenance of target units for qualified tenants; 2, Provisions requIring owners to verify tenant incomes and maintain books and records to demonstrate compliance with this Article; and 3. Provisions requiring owners to submit an annual report to the City, which includes the name, address and income of each person occupying target units, and which identifies the bedroom size and monthly rent or cost of each target unit. Section 7: Section 17.39.010, General Requirements, of the Poway Municipal Code is amended to read as follows: General requirements. The following requirements for residential senior citizen housing projects and are minimum requirements unless otherwise stated: Ordinance No. 701 Page 17 Requirement Number 1, Density, maximum living units 20 living units per net acre or 50 beds per per net acre net acre, whichever is more restrictive. Any Density Bonus shall be pursuant to Article V of PMC Chapter 17.26, Affordable Housing Incentives, and shall apply only to the number of living units per acre and not to the number of beds per acre. In the case of a Density Bonus, the maximum density shall be 20 living units per net acre plus the Density Bonus, or 50 beds per net acre, whichever is more restrictive, 2. Site area (in acres) 2 3. Front yard setback (in feet) 25 4. Side yard setback each side (in feet) 10/10 5. Side yard setback street side (in feet) 25 6. Rear yard setback (in feet) 25 7. Building height, maximum 35 feet or two stories, whichever is less 8. Site coverage, maximum 50 percent 9. Parking spaces per one bedroom unit Combined total of 1.2 spaces per living unit (covered in carport) and guest parking spaces per unit (uncovered) plus one space per employee, Two bedroom units and those units providing for private ownership shall provide one space per unit. Accessible parking shall be provided at the ratio prescribed by Title 24 of the State Building Code. 10. Distance between buildings (in feet) 10 11. Minimum age requirement 55 Section 8: Section 17.39,020(G)(3) of the Poway Municipal Code is amended to read as follows: 3, Projects should be located within one-half mile from a major food store/market (one which carries a full line of meat, groceries, produce, etc.), Section 9: Section 17.39.020(G)(4) of the Poway Municipal Code is amended to read as follows: Ordinance No. 701 Page 18 4. Projects should be located within approximately 500 feet of a bus or transit stop. Projects which do not meet these location criteria will be required to provide supplemental transportation for tenants, The type, amount and extent of the supplemental transportation system will be determined by the Development Services Director and shall be based on project size, location and availability of services. Minimal standards for supplemental transportation may range from three to six round-trip visits per week/per tenant for services expected to be patronized by these tenants. Section 10: Section 17.39.020(H) is amended to read as follows: H, All projects shall provide laundry facilities adequately sized and located to serve the needs of the residents as provided in PMC 17.08.220. Projects totaling 14 living units or more shall provide a recreation/community-social room accessible to the disabled. For projects up to 25 living units, the facility shall be of at least the size of the smallest living unit provided in the project. For projects exceeding 25 units, the facility should be appropriately sized to serve the needs of residents and shall have adjacent toilet facilities for men and women. The size of the recreation room may be appropriately reduced if it is located adjacent to usable outdoor space. Unless the building is serviced by an elevator, recreation rooms should be located on the ground floor, and are more appropriately located near the entrance of projects to afford residents a protected view out onto the streetscape. Section 11: Section 17.39.020(1) is amended to read as follows: In addition to the standard application submittal requirements for the project, the applicant shall also submit a detailed vicinity map showing the project location and such details as the nearest market, transit stop, park or recreation center, hospital or clinic, bank, post office, or other related uses/services likely to be patronized by the tenants. Section 12: This Ordinance shall be codified. EFFECTIVE DATE: This Ordinance shall take effect and be in force thirty (30) days after the date of this passage; and before the expiration of fifteen (15) days after its passage, it shall be published once with the names and members voting for and against the same in the Po way News Chieftain, a newspaper of general circulation published in the City of Poway. Introduced and first read at a regular meeting of the City Council of the City of Poway held this 1st day of December 2009, and thereafter PASSED AND ADOPTED at a regular meeting of said City Council held the 15th day of December 2009, ru",~ Don Higginson, Ma r Ordinance No. 701 Page 19 I, Linda A. Troyan, City Clerk of the City of Poway, do hereby certify that the foregoing Ordinance No, 701, was duly adopted by the City Council at a meeting of said City Council held on the 15th day of December 2009, and that it was so adopted by the following vote: AYES: BOYACK, CUNNINGHAM, REXFORD, KRUSE, HIGGINSON NOES: NONE ABSENT: NONE DISQUALIFIED: NONE , City Clerk