PC RES 2008-015 r
i
P.C. RESOLUTION NO. 2008-15
RESOLUTION F THE PLANNINGCOMMISSION F THE CITY OF
RANCHO PALOS VERDES RECOMMENDING THAT THE CITY
COUNCIL ADOPT AN ORDINANCE AMENDING CHAPTER 17011
(AFFORDABLE H USING) AND CHAPTER 17.96 (DEFINITIONS) OF
TITLE 17 OF THE CITY'S MUNICIPAL CODE TO CONFORM TO STATE
DENSITY BONUS LAWS, TO IMPLEMENT CITY COUNCIL POLICY
PERTAINING TO THE LCOATION OF FUTURE AFFORDABLE
HOUSING UNITS, AN TO MAKECHANGES TO THE SECTION
PERTAINING TO AFFORDABLEHOUSING RE UI ME TS FOR
NON-RESIDENTIAL PROJECTS -- (CASE NO. 2008-00161).
WHEREAS, Chapter 17.11 of Title 17 of the Rancho Palos Verdes Municipal
Code (the "Municipal Code") sets forth various procedures and regulations regarding
provision of affordable housing within the City, and,
WHEREAS, certain provisions of Government Code Section 65915 have been
revised by the state legislature that pertain to density bonuses, incentives, and
concessions provided to developers for the production of affordable housing; and,
WHEREAS, Government Code Section 65915(x) stipulates that
"All cities . . . shall adopt an ordinance that specifies hove compliance with [state density
bonus requirements] will be implemented;" and,
WHEREAS, it is necessary to amend the City of Rancho Palos Verdes' existing
density bonus provisions set forth in Chapter 17.11 of Title 17 of the Municipal Code
and certain definitions as set forth in Chapter 17.96 of Title 17 of the Municipal Code to
bring those provisions into conformity with state law; and,
WHEREAS, at their July 17, 2007 meeting, the Council provided policy direction
to Staff pertaining to the location of future affordable housing units, and directed Staff to
make changes to Chapter 17.11 to implement said policy; and,
WHEREAS, Staff has identified necessary changes to the affordable housing
requirements for non-residential developments; and,
WHEREAS, pursuant to the provisions of the California Environmental Quality
Act, Public Resources Code Sections 21000 et. seq. ("CEQA"), the State's CEQA
Guidelines, California Code of Regulation, Title 14, Section 15000 et. seq., the City's
Local CEQA Guidelines, and Government Code Section 65962.5(f) (Hazardous Waste
and Substances Statement), the City of Rancho Palos Verdes prepared an Initial Study
and determined that there is no substantial evidence that the approval of ZON2005-
00296 would result in a significant adverse effect upon the environment and, therefore,
a Mitigated Negative Declaration has been prepared and notice of same was given in
the manner required by law; and,
P.C. Resolution No. 2008-15
Page 1 of 21
WHEREAS, on February 28, 2008, notice of a public hearing on the proposed
amendments to Chapters 17.11 and 17.96 of Title 17 of the Municipal Code was
published in the Palos Verdes Peninsula News; and,
WHEREAS, copies of the draft Negative Declaration were distributed to the
Planning Commission, and prior to taking action on the proposed Municipal Code
Amendments, the Planning Commission independently reviewed and considered the
information and findings contained in the Negative Declaration and determined that the
document was prepared in compliance with the requirements of CEQA and local
guidelines, with respect thereto; and,
WHEREAS, after notice issued pursuant to the requirements of the Rancho
Palos Verdes Development Code, the Planning Commission held a duly noticed public
hearing on April 8, 2008, at which time all interested parties were given an opportunity
to be heard and present evidence.
NOW, THEREFORE, THE PLANNING COMMISSION OF THE CITY OF RANCHO
PALOS VERDES DOES HEREBY FIND, DETERMINE, AND RESOLVE AS
FOLLOWS:
Section 1: The Planning Commission has reviewed and considered the
amendments to Chapter 17.11 (affordable Housing) and Chapter 17.96 (Definitions) of
Title 17 of the City's Municipal Code.
Section 2: The Planning Commission finds that the amendments to Title 17 of
the Municipal Code are consistent with California Government Code Section 65858,
zoning amendment procedures.
Section : The Planning Commission finds that the amendments to Title 17
are consistent with the Rancho Palos Verdes General Plan and Coastal Specific Plan in
that they uphold, and do not hinder, the goals and policies of those plans. Specifically,
the amendments help "provide a variety of housing for future needs groups", and
"develop[s] an ordinance implementing the state density bonus law", in accordance with
General Plan Goals I and III.
Section 4. The Planning Commission finds that the amendments to Title 17
conform to State Density Bonus laws and to Senate Bill 1818 (Hollingsworth).
Section 5: The Planning Commission finds that the amendments to Title 17
are substantially the same as previous provisions of the Rancho Palos Verdes
Municipal Code or any other ordinance repealed, amended or superseded upon the
enactment of this ordinance and that the amendments to Title 17 shall be construed as
a restatement and continuation of the previous provisions and as new enactment.
P.C. Resolution No. 2008-15
Page 2of21
Section : The Planning Commission further finds that there is no substantial
evidence that the amendments to Title 17 would result in new significant environmental
effects, for amendments to Title 17 of the Municipal Code. A Negative Declaration has
been prepared and P.C. Resolution No. 2008- has been adopted, recommending that
the City Council certify the Negative Declaration making certain environmental findings
in association with Case No. ZON2008-00161,
Section 7: The Planning Commission finds that the amendments to Title 17
are necessary to preserve the public health, safety, and general welfare in the area.
Section : Section 17.11.020 of Title 17 is hereby amended to read as follows
(the bold underlined text represents new language and the -+ri"e-through text
represents deleted language):
17.11.020 Applicability.
The requirements of this chapter shall apply to all applications which will result in the
creation of five or more dwelling units or residential lots, including but not limited to, applications
for a tentative tract map, parcel map, conditional use permit, coastal permit, building permit or
other development entitlement. where an initial project consists of four or fewer units, and
application is made within three years of the initial project approval to further subdivide or expand
the initial project such that the total number of dwelling units or residential lots is equal to five or
more, this chapter shall apply.
The requirements of this chapter shall also apply to all applications for demolition or
conversion of three or more dwelling units in the coastal specific plan district described in Chapter
17.72 (Coastal Permits), as specified in Section 17.11.130 of this chapter.where an initial project
consists of two or fewer units, and application is made within three years of the initial project
approval to further subdivide or expand the initial project such that the total number of dwelling
units or residential lots is equal to three or more, this chapter shall apply.
The requirements of this chapter shall also apply to any development project which has
been approved prior to adoption of this chapter which contains a condition requiring the provision
of affordable housing.
This chapter shall further apply to conversion of existing residential rental projects to
condominium or stock cooperative ownership at any location in the city
the 1-1n'ts are GGGUpied by veFy 10W OF 10W iRGOFRO households at the tome applir-Atinn fAF
No residents may be evicted for the purpose of avoiding the requirements of this section.
Where residents have been evicted in the twelve months prior to filing an application listed in this
section, a presumption of avoidance shall be made, unless evidence to the contrary is submitted
to, and approved by, the city. , 1997)
Section : Section 17.11.040 of Title 17 is hereby amended to read as follows
(the bold underlined text represents new language and the etFikethreagh text
represents deleted language):
17.11.040 Affordable housing requirement.
P.C. Resolution No. 2008-15
Page 3 of 21
A. Number of Affordable units Required. Except as provided for in Section 17.11.030 of
this chapter, new residential development of five or more dwelling units shall be required to
pFevide dedicate up to five percent of all units as affordable to very low income households or
previde-dedicate up to ten percent of all units as affordable to low income households.Where a
mixture of affordability levels is provided, each very low income affordable unit shall be weighted
such that it is equivalent to two low income affordable units, resulting in a total weighted count
equal to ten percent of total units. The units provided pursuant to this dedication requirement
shall be rented or sold only to households whose income is at a level which does not exceed the
required affordability level of the unit. Except where it has been demonstrated not to be feasible,
the affordable units shall be similar in exterior appearance, configuration and basic amenities
(such as storage space and outdoor living areas)to the market rate units in the proposed project.
The affordable units shall be provided on-site or off-site at a location to be approved by
the director. Prior to the time the affordable units become available for sale or rent, certificates of
occupancy shall not be issued for more than fifty percent of the units in the project nor shall more
than fifty percent of the individual lots be sold in cases where a tract map is involved. For phased
developments, the provision of the affordable units shall also be phased, proportionate to the size
of each development phase.
B. Location of Affordable Housing units.
1. ®n-site Location. The affordable units shall be provided on-site or off site a-
lOGatiGR to be approved by the diFeGtG
as part of the new residential development,
unless the project applicant that is required to provide said units demonstrates
to the City Council's satisfaction that providing said units on site shall render
the project infeasible.
2. Off-site Location. If, as stated above in Section 17.11.040(B)(1), the project
ap[?Iicant files a request supported by a feasibility study conforming to the
requirements set forth in Section 17.11.080, and the City Council makes a
finding pursuant to Section 17.11.080(D)(3) that on-site units would render the
project infeasible,the project applicant may then provide said units off-site
provided that:
a. The off-site unit would not cause the existing development wherein the
off-site unit is to be located to exceed the minimum number of affordable
housing units required pursuant to Section 17.11.040(A) if the development
were considered a new development. For the purposes of this section,
"existing development" shall mean a Tract of residential homes (either
condominium,townhome, single-family detached or single-family attached)
or an existing residential apartment development; and
b. The off-site unit is not within an existing development of less than 5
residential units: and
c. The off-site unit is a newly constructed unit, unless the following
occurs:
1) the project applicant files a request supported by a
feasibility study conforming to the requirements set forth in Section
17.11.080, and the City Council makes a finding pursuant to Section
17.11.080(D)(5)that said off-site unit provided as a "new"
construction unit would render the project infeasible and thus
"conversion units" may be provided. "Conversion unit" shall mean
an existing developed market-rate unit that has been converted to
an affordable housing unit and meets all applicable requirements of
Chapter 17.11: and
P.C. Resolution No. 2008-15
Page 4 of 21
2) the City Council determines that in meeting its affordable
housing construction needs per the Regional Housing Needs
Assessment as described in the City's current General Plan
Housing Element,there are per the reguilrements of State Law a
sufficient number of"conversion units"available to allow the
Rrolect applicant to utilize one of the limited number of"conversion
units"available to the City in meeting its affordable housing
construction need. In determining whether there is a sufficient
number of"conversion units"available,the City Council shall first
consider the City's own needs and/or plans to utilize any available
66conversion units", then secondly, shall consider any existing
avreements/approyals from the City to allow other applicants the
ability to utilize a "conversion unit". If after considering these two
priority positions, there are still available "conversion units",then
the City Council may grant the project apRlicant the use of an
remaining "conversion units" available.
C. Timing of providing Affordable Housing Units, Prior b}the time the affordable units
become available for sale or rent, certificates of occupancy shall not be issued for more than fifty
percent ofthe units inthe project nornha|| bemonethanfiftvpercmntoftheindividuo| |otsoo|din
cases where a tract map is involved. For phased developments, the provision of the affordable
units shall also bephased, proportionate tothe size ofeach development phase. /Ond. 32O § 7
(part), 1997)
Section 10: Section 17.11.060OfTitle 17iShereby amended tOread 8Sfollows
(the bold underlined text DBpFBS8ntS new language and th8t8xt
represents deleted l8OgU@g8\:
Section 17.11.OG0Affordable housing incentives.
A. Density Bonus.
NIPIA9G9AGtF'IGtiGR. VVheR1. A density bonus, as defined in Section 17.96.550
of the Municipal Code, shall be 12rovided by the city when a developer of a Aqw:
housing prejeGAevelol2ment consisting of five or more dwelling units agrees to
tW8Rt =nstruct that ho isina develoornent to contain at least any one of the
a. Ten l2ercent of the total units of a housing development for lower income
households, as defined in Section 50079.5 of the Health and Safety Code.
b. Five percent of the total units of a housing development for very low
income households, as defined in Section 50105 of the Health and Safety
c. A senior citizen housing development as defined in Sections 51.3 of the
Civil Code, or mobilehome park that limits residency based on age
reguirements for housing for older persons pursuant to Section 798.76 or
799.5 of the Civil Code.
d. Ten
percent of the total dwelling units in a
interest development as defined in Section 1351 ofthe Civil
P.C. R88OiUfiDO NO. 2008-15
Page 5Df21
Code for persons and families of moderate income, a density bonus, as defined
by S9Gtian 17.9-6.550- of the MuniGipal Code, and�er affordable heusiRg inGentive
El II I . . led by the Gityin Section 50093 of the Health and Safety Code,
erovided that all units in the development are offered to the public for
purchase.
2. In calculating the percentage of units for either a density bonus or an
increase in a density bonus,the following shall apply:
a. The units resulting from the density bonus shall nat be inrUlud-edbe excluded
from the calculation when determining the number of dwel" _ - ,ial to ten or t
peFGGRt of the tetal Units. At gne or alternative ORGentive, as t_IR_sr_,r;_hP_d *P.
S8Gtien 17.11.060'c" of this GhapteF, 9F other inc;entives OF G f equivalent
finanGial val i the land G06tS peF dwelling unit, shall be provided in additiOR tO
the deRS'tY unless_ the Gity makes a wFitteR finding, based upon substaRtial evidenGe,
that the additional GonGession e_r iAr_,e_Ative is not FequiFed in order to pFevide for affordable
housing GGStS, as defined in Ser-AeGn 500-522.5 of. the lHIP_a;IIt_IhI .;;.n.d- Safety Code E)F Government
GA-de 605915(G).Theaffordable housing units for each income level.
b. The units set aside as affordable for very low income households or low
income households, or both, that are required pursuant to Section 17.11.040 of this
chapter, shall be counted as part of the total units or total dwelling units in the housing
development, however, those Section 17.11.040 units shall not be counted as units
reserved for very low income households or lower income households, or both, for
purposes of calculating whether a developer gualifles for a density bonus or an
increase in a density bonus.
c. The residential units do not have to be based upon individual
subdivision maps or parcels.
3. The amount of density bonus to which the developer is entitled shall vary
according to the amount by which the percentage of affordable housing units
exceeds the percentage established in subparagraph (a), (b), (c), or (d) of
Section 17.11.060(A)(1). The applicant may elect to accept a lesser percentage
of density bonus. 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. The density bonus shall be calculated as
follows:
a. For housing developments meeting the criteria of Section
17.11.060(Lk)(1)(a), the density bonus shall be twenty percent (20%). For each one
percent (1%) increase in the number of affordable units above the initial ten percent
(10%) threshold of units affordable to lower income households, the density bonus
shall be increased by one and one-half percent (1.5%) up to a maximum of thirty-five
percent(35%).
b. For housing developments meeting the criteria of Section
17.11.060(N(1)(b), the density bonus shall be twenty percent (20%). For each one
percent (1%) increase in the number of affordable units above the initial five percent
(5%) threshold of units affordable to lower income households,the density bonus shall
be increased by two and one-half percent(2.5%) up to a maximum of thirty-five percent
(35%).
C. For housing developments meeting the criteria of Section,
17.11.060(Lk)(1)(c),the density bonus shall be 20 percent(20%).
P.C. Resolution No. 2008-15
Page 6 of 21
d. For housing developments meeting the criteria of Section
17.11.060(Nil)(d), the density bonus shall be twen!y percent (20%). For each one
Rercent ('11%) increase in the number of affordable units above the initial ten percent
(10%) threshold of units affordable to persons and families of moderate income, the
density bonus shall be increased by one percent (1%) up to a maximum of thirty-five
e. A housing development may meet the criteria for more than one density
bonus, and those density bonuses may be combined, but in no event shall the total
density bonus for a housing develoRment exceed thirty-five percent(35%).
f. For housing develo2ments that will contain a mixture of units restricted
by income level, but which will not meet the seecified criteria to qualify for a density
bonus in each income category, if the develoRment qualifies under one category
pursuant to subparagraph (a), (b), or (d) of Section 17.11.060(N(l) (the "qualifying
category"), the develoger may elect to add the percentages of gualifying and
nonguallifying affordable housing units together and apply that percentage to the
formula for the highest income units that will be built in order to calculate the density
a. All density calculations resulting in fractional units shall be rounded up
to the next whole number.
4. The affordable housing uDUS Sh@|| be rented or sold only to households whose
income is at a level that does not exceed the required affordability level of the unit.
5' The affordable units mho|| be similar in exterior appearance, configuration
and basic amenities (such as storage space and outdoor living areas) bothe market
rate units inthe proposed project.
1'A.1hP_R a developep Of RSW housing agrees to pFevide at least teR PGFGent of all URits as very 10
inrVeMe units and tWGRty perGent of all units as IOW iRGGFn9 units, dGRSity bonuses shall Rot aGGruee
GUMulatively, and GRIY GRe de-sity bonus and at least eRe other additiGRal inGentive shall be
6. The granting of a density bonus shall not be intergreted, in and of itself, to
reguire a general plan amendment, local coastal plan amendment, zoning
change, or other discretionaEM apl2roval.
--2L.B. Condominium Conversion. In lieu of Section 17.11.060(N of this chal2ter, an applicant
may elect, at the time of the aRRlication, to have the density bonus governed by this
subsection (B) if the h)using development is eligible for a density bonus pursuant to this
1' VVhena an applicant for a conversion of on apartment project to e condominium
project, as defined in subdivision (f) of Section 1351 of the Civil Code, agrees to
provide at least thirty-three percent of the total proposed condominium units to
persons and families of low and moderate income househeldsas defined in
Section 50093 of the Health and Safety Code, or at least fifteen percent of the total
units of the proposed condominium project o lower income households as
defined in Section 50079.5 of the Health and Safety Code, and agrees to pay
reasonably necessary administrative costs incurred by the city, the city shall either
qMnt a density bonus, and/or aff-eFdable housing 'RGGRt*Ve shall be provided by the
Gity. The '4-RGity bonus units shallor i2rovide other incentives of eguivalent
financial value pursuant to Section 17.11.060(E). The city shall determine
P.C. Resolution No. 2008-15
Page 7Of21
whether a density bonus or an incentive is provided, and at the city's sole
discretion, may 12rovide both a density bonus and an incentive.
2. For the 2urRose of this subsection (B),
a. "density bonus" means an increase in units of 25 Rercent over the
number of apartments, to be provided within the existing structure or structures
to be converted-.; and,
b. "other incentives of eguivalent financial value" shall not be construed to
reguire the city to provide cash transfer payments or other monetary
compensation but may include the reduction or waiver of reguirements
which the city might otherwise apply as conditions of conversion agE?roval.
3. The units shall besold only tohouseholds whose income ksatalevel does
not exceed the required affordability level of the unit. Except where it has been
demonstrated not to be faaaib|e, the affordable housing units shall be similar in
oppoonanne, configuration and amenities to the market rata units in the proposed
project.
4. An applicant for apl2royal to convert apartments to a condominium project may
submit a preliminary grolgosal pursuant to this subsection (B) prior to the
submittal of any formal reguests for subdivision map approvals pursuant to the
requirements of Title 16 of this Code. The city shall, within 90 days of receipt
of a written proposal, notify the applicant in writing of the manner in which it
will comply with this subsection.
5. An apartment project originally developed with o density bonus or other incentive
pursuant toSection 17.11.060(A)(1\ this ohapter, shall
not be eligible for a further density bonus or incentive under this subsection.
lieu of, eF In addition to, a d8Rsity beRus may be pFevided. InGentives, both for puFpeses of mandator!,
pursuant te this paragraph, iRGlude, but are Rot "FRited te�
6. Nothing in this Section shall be construed to require the city to approve a
proposal to convert al2artments to condominiums.
C. Land Donation.
1. When an applicant for a tentative subdivision mal2, parcel map, or other
residential development al2proval donates land to the city, the apl2licant shall
be entitled to a density bonus E?ursuant to Section 17.11.060(C)(2), if all of the
followina conditions are met:
a. The al2RIicant donates and transfers the land no later than the date of
al2proval of the final subdivision map, Rarcel ma2, or residential
development application.
lb. The developable acreage and zoning classification of the land being
transferred are sufficient to permit construction of units affordable to yeDt
low income households as defined in Section 50105 of the Health and
Safety Code in an amount not less than ten percent (10%) of the number of
residential units of the proposed develol2ment.
P.C. Resolution NO. 2008-15
F»2g8 8 of 21
c. The transferred land is at least one acre in size or of sufficient size to
permit development of at least 40 units, has the appropriate general plan
designation, is appropriately zoned for development as affordable housing.,
and is or will be served by adequate public facilities and infrastructure. The
land shall have appropriate zoning and development standards to make the
development of the affordable housing units feasible. No later than the date
of approval of the final subdivision map, parcel map, or of the residential
development, 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, except that the
city may subject the proposed development to subsequent design review
to the extent authorized by subdivision (i) of Section 65583.2 of the
Government Code if the design is not reviewed by the city prior to the time
of transfer.
d. The transferred land and the affordable housing units shall be subject to
a deed restriction ensuring continued affordability of the units consistent
with Section 17.11.070(N, which shall be recorded on the property at the
time of dedication.
e. The land is transferred to the city or to a housing developer approved by
the city. The city may require the applicant to identify and transfer the land
to the developer.
f. 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.
2. For land donations meeting the criteria of Section 17.11.060(C)(1),the applicant
shall be entitled to a fifteen-percent (15%) increase above the otherwise
maximum allowable residential density under the applicable zoning ordinance
and land use element of the general plan for the entire development. For each
one percent (1%) increase in the number of affordable units above the initial
ten percent(10%) threshold of units affordable to very low income households,
the density bonus shall be calculated by adding five percent (5%) to the
percentage of units affordable to very low income households, up to a
maximum of thirty five percent(35%).
3. This increase shall be in addition to any increase in density mandated by
Section 17.11.060(N, up to a maximum combined mandated density increase
of 35 percent if an applicant seeks both the increase required pursuant to this
subsection (C), and Section 17.11.060(A). All density calculations resulting in
fractional units shall be rounded up to the next whole number.
D. Child Care Facility.
1. When an applicant proposes to construct a housing development that conforms
to the requirements of Section 17.11.060(N(1) 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 the applicant one of the following:
a. An additional density bonus that is an amount of square feet of
residential space that is egual to or greater than the amount of sguare feet
in the child care facility.
P.C. Resolution No. 2008-15
Page 9 of 21
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development: the total number of dwelling units proposed, the number of units for lower income
households, the number of units for very low income; households the number of qualifying
senior units, andioF GoRdemipjufathe number of common interest development units for persons
and families of moderate income , the rent or price of the units, the location of the
units, propesedand the means of administering the units-,-and. The_application shall also specify
such other information as may be required by the director. The applicant shall designate whether
the density bonus is requested on the basis of subparagraphs (a), (b), (c), or (d), of Section
17.11.060(N(1). If an additional incentive is requested, beyond that required pursuant to Section
17.11.060, or if an in-lieu incentive is requested, the feasibility
stud requirements of Section 17.11.080 of this chapter shall also apply. The application shall be
accompanied by a fee, to be established by resolution of the city council, to cover the city' s cost of
reviewing and administering the proposed density bonus project. ;
7(par )
H If a housing development is eligible for any density bonus, incentive, concession, waiver
or reduced parking ratio pursuant to this Section 17.11.060 (a "bonus"), when Sections
1711 070, 1711 080 1711 110, and 1711 120 of this chapter are applied to that housing
development for any purpose related to a bonus or for any purpose related to the affordable
housing units that make the housing development eligible for a bonus, the definitions of the
terms "low income," "moderate income," and "very low income," as defined in Sections
17 96.960 17.96.970 and 17.96.980, shall not apply, and the phrases "low income
households," "very low income households," "persons and families of low or moderate
income," and "persons and families of moderate income" shall have the meaning assigned to
those phrases by this Section 17.11.060.
Section 11: Section 17.11.070 of Title 17 is hereby amended to read as follows
(the bold underlined text represents new language and the etr' f� text
represents deleted language):
Section 17.11.070 Period of affordability.
A. Units required at specified affordability levels shall remain available and affordable for the longest
feasible period of time, as determined by the city. However, no event shall low and very lov.,
units rernain available and aff-Grdable fGr a peried of less than where a density
bonus, or incentives or concessions of equivalent financial value based upon the land cost per
dwelling unit are provided. Units for qualifying senior resident_ as defined by con+inn 17 96 '1660 of
+hi� n�_haptor9 units of a housing development for lower income households, very low income
households,
or persons and families of low and moderate income, shall remain available and
affordable for a period of at least thirty years, or a longer period of time if required by the
construction or .mortgage financing assistance program, mortgage insurance program, or
rental subsidy program In no event may a housing development be converted to a common
interest development as defined in Section 1351 of the Civil Code for a period of thirty years
from first occupancy if the housing development includes affordable housing units for rent.
1. Rents for the units for lower income households or very low income
households shall be set at an affordable rent as defined in Section 50053 of the
Health and Safety Code.
2 Owner-occupied units shall be available at an affordable housing cost as
defined in Section 50052.5 of the Health and Safety Code.
S Notwithstanding the provisions of Section 17.11.070(A), the following shall apply to
Section 17.11.060(A)(1)(d) units:
P.C. Resolution No. 200815
Page 12 of 21
11The initial occupant of the moderate-income units that are directly related to the
receipt of the density bonus in the common interest development, as defined in
Section 1351 of the Civil Code, shall be persons and families of moderate
income, as defined in Section 60093 of the Health and Safety Code, and the
units shall be offered at an affordable housing cost, as that cost is defined in
Section 50052.5 of the Health and Safety Code. An equity-sharing agreement
shall be entered into for each unit, unless such an agreement is in conflict with
the reguirements of another gublic funding source or law.
2. The following shall apply to the eguity-sharing agreement:
a. 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 shall then be used within three
years for any of the purposes described in subdivision (e) of Section
33334.2 of the Health and Safety Code that promote homeownership.
b. For purposes of this subsection (B), the city's initial subsidy shall be
eguall 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.
c. For gurposes of this subsection (B), the city's proportionate share of
appreciation shall be equal to the ratio of the initial subsidy to the fair
market value of the home at the time of initial sale.
3. In lieu of the provisions of Section 17.11.070(B)(1), where there is a direct
financial contribution to a housing develoOment through the city's participation
in cost of infrastructure, write-down of land costs, or subsidizing the cost of
construction, low- and moderate-income units shall remain available and
affordable for thirty years, and the equity sharing agreement shall specify the
mechanisms and procedures necessary to car!2L that out.
C. A senior citizen housing development as defined in Sections 51.3 of the Civil Code, or
mobilehome park that limits residency based on age reguirements for housing for olde
persons pursuant to Section 798.76 or 799.5 of the Civil Code, shall remain available to qualifying
senior residents for a period of at least fifteen years. GORdeminium units feF p9rseRs and families of
Fn9deFateiRGGFne shall reFna*R available and affeFdable for a peFied of at least teR years. (QFd. 394
Section 12: Section 17.11.080 of Title 17iShereby amended to read as follows
(the bold underlined text n8D[8SeOtS new language and the strikethreugh text
represents deleted language):
17.11.080 Feasibility
&Applicability. Afeasibility study shall barequired when:
1. Provision of units affordable to low and very low income households in accordance
with Section i7.11.04Oofthis chapter ianot contemplated;
P.C. R8SOlUfiOn NO. 2008-15
Page 13Of21
2. An existing development in the coastal specific plan district meets the criteria of
Section 17.11.130 of this chapter and the provision of replacement units affordable to
low and moderate income households is not contemplated;
3. A developer has requested one or more incentives or concessions in addition to the
density bonus, pursuant to Section 17.11.060 of this chapter; or
4. A developer has requested to pay a fee in lieu of providing affordable housing units
pursuant to Section 17.11.050; or
5. A developer has requested to provide required affordable housing units per
Section 17.11.040 as off-site units• or
6. A developer has requested that proposed off-site units be "conversion units"
as opposed to newly constructed units; or
7. A developer has requested one or more waivers or reductions of development
standards pursuant to Section 17.11.080(F).
B.Application.
1. Submission of a feasibility study per subsections (A)(1)through (A)(3)of this section
shall be as follows: The applicant shall deposit with the city a fee adequate to compensate for the
cost of the study in addition to an administrative fee at a level to be established by resolution of
the city council. The applicant shall provide a project proforma, data regarding existing rents and
existing tenant income for existing residential projects to be converted or demolished, and any
other information deemed necessary by the director. The application package shall not be
deemed complete until the feasibility study is completed to the satisfaction of the director.
2. Submission of a feasibility study pursuant to subsection (A)(4)shall be as follows:
The applicant shall submit a letter requesting to pay a fee in lieu of providing one or more
affordable units and shall deposit with the city a fee to cover the costs of reviewing and
processing such request at a level to be established by resolution of the city council. The letter
shall include the reason(s)why the request is being made, address all of the items noted in
subsection (C)(2), and describe how the request satisfies the finding set forth in subsection
(D)(3). Additionally, the applicant shall provide a project proforma, and/or any other information
deemed necessary by the director.
3. Submission of a feasibility study pursuant to subsection (6)(5)of this section
shall be as follows: The appljcant shall submit a letter requesting to provide required
affordable housing units as off-site units instead of on-site units and shall deposit with the
city a fee to cover the costs of reviewing and processing such request at a level to be
established by resolution of the city council. The letter shall include the reason(s)why the
request is being made address all of the items noted in subsection (C)(3),and describe
how the request satisfies the finding set forth in subsection (D)(3). Additionally,the
applicant shall provide a project proforma, and/or any other information deemed
necessary by the director.
4. Submission of a feasibility study pursuant to subsection (A)(6)of this section
shall be as follows: The applicant shall submit a letter requesting to provide required
affordable housing units off-site as "converted units" instead of newly constructed units
and shall deposit with the city a fee to cover the costs of reviewing and processing such
request at a level to be established by resolution of the city council. The letter shall
include the reason(s)why the request is being made, address all of the items noted in
subsection (C)(4) and describe how the request satisfies the finding set forth in
subsection (D)(3). Additionally,the applicant shall provide a project proforma, and/or any
other information deemed necessary by the director.
P.C. Resolution No. 2008-15
Page 14 of 21
C. Study Contents. The study shall examine the feasibility of providing affordable units in
accordance with Sections 17.11.040 and 17.11.130 of this chapter, as applicable. Additionally:
1. If an application has been filed for an affordable housing incentive or concession in
addition to a density bonus, the study shall examine the feasibility of providing the affordable
housing without the additional affordable housing incentive. If this is demonstrated not to be
feasible, the study shall examine other affordability scenarios at the discretion of the director.
These may include the feasibility of providing fewer units affordable to low and very low income
households and units affordable to progressively higher income households, as approved by the
director;
2. If an application has been filed requesting to pay a fee in lieu of providing affordable
housing units, then the feasibility study shall evaluate:
a. The specific economic, environmental or technical factors that may render
infeasible the provision of any or all new affordable units required pursuant to Section
17.11.040 of this chapter;
b. The impacts to the development project if the city council denies the
applicant's request to pay a fee in lieu of providing affordable housing as part of the
development;
c. The project's profit margin if the applicant is required to provide affordable
units compared to the profit margin if the applicant is allowed to pay the in-lieu fees; and
d. The feasibility of providing some, but not all, of the required affordable housing
units, with payment of in-lieu fees paid for the units not provided.
3. If an application has been filed requesting to provide affordable housing units
off-site as opposed to providing them on-site as part of the project development,then the
feasibility study shall evaluate:
a.The specific economic, environmental or technical factors that may
render infeasible the provision of affordable units on-site as part of the project
development;
b.The impacts to the development project if the city council denies the
appl'icant's request to provide units off-site as opposed to on-site;
c.The project's profit margin if the applicant is allowed to provide the units
off-site compared to the profit margin if the applicant is required to provide the
units on-site;
d.The feasibility of providing some, but not all,of the required affordable
housing units on-site.
4. If an application has been filed requesting that a required affordable housing
unit that is to be provided off-site be a"conversion unit" as opposed to a newly
constructed unit,then the feasibility study shall evaluate:
a.The specific economic, environmental or technical factors that may
render infeasible the provision of a newly constructed unit as opposed to a
"conversion unit";
P.C. Resolution No. 2008-15
Page 15 of 21
b.The lml2acts to the development project if the city council denies the
a12121icant's reguest to provide a "conversion unit" as opposed to a newl
constructed unit;
c. The project's profit margin if the apRilcant is reguired to provide a new!y
constructed unit compared to the Rrofit ma[gin if the applicant is permitted to
provide a "conversion unit";
d.The feasibility of providing some, but not all,of the required affordable
housing units as newly constructed units.
D.Written Findings Required.
1.Approval of a lesser amount of housing affordable to the specified income groups than
would otherwise be required under the provisions of Sections 17.11.040 and 17.11.130 of this
chapter may be approved by the city council upon adoption of the following findings:
a. That specific economic, environmental or technical factors render infeasible
the provision ofnew dwelling units affordable to low and/or very low income houeehn|dn,
pursuant to the requirements of Section 17.11.040 of this chapter, or of replacement units
affordable to low and/or moderate income households pursuant to the requirements of
Section 17.11.130ofthis chapter;
b, That these factors are documented in a feasibility study which has been
prepared for the proposed project, which study has been reviewed and approved by the
city and iepart ofthe public record for the project.
2. Approval ofenapplicant's requested concession orincentive reguired pursuant to
Section 17.11.060, or a waiver or modification of development standards_in addition to
density bonus or both shall be approved by the city council unless, based on substantial
evidence including a feasibility study that has been reviewed and approved by the city and is part
ofthe public record for the project, onoorbothofthefoUow/ingvvriUenfindingsiannade:
a. That the concession orincentive ionot required inorder toprovide for
affordable housing costs, as defined in Section 50052.5 of the Health and Safety Code,
orfor rents for the targeted units tobeset amspecified in subdivision (c)ofSection 65815
ofthe Government Code; or
b. That the concession or incentive would have a specific adverse impact, as
defined in paragraph (2)of subdivision (d)of Section 65589.5 of the Government Code,
upon the 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 low-and moderate-income households.
3. Approval of an applicant's request to pay a fee in lieu of providing affordable housing
units shall be approved by the city council provided the following finding is made:
a. Specific economic, environmental or technical factors render infeasible the
provision of any or all of the new affordable units required pursuant to Section 17.11.040
of this chapter.
4. AE?E?roval of an a2plicant's reguest pursuant to Section 17.11.060 E.3. for one
or more concessions or incentives that are in addition to mandatory concessions reguired
gursuant to Section 17.11.060 E.J. may be granted if the findings of Paragraph D.2. of this
Section 17.11.080 are made. However, the fact that these findings can be made shall not
be construed to reguire approval of the additional reguested concessions or incentives.
P.C. Resolution NO. 2008-15
Page 16Of21
5. Approval of an agplicant's reguest to provide affordable housing units off-site of
the Rrolect site,and/or to Rrovide any off-site affordable housing units as "conversion
units" as opposed to newly constructed units shall be al2l2roved by the city council
12rovided the following finding is made:
a. Specific economic,environmental or technical factors render infeasible
the provision of any or all of the new affordable housing units required pursuant to
Section 17.11.040 of this chapter as being constructed on-site and therefore
warrants the 12rovision of said reguired units off-site; and/or
b. Specific economic, environmental or technical factors render infeasible
the 12rovision of any or all of the new off-site affordable housing units reguired
pursuant to Section 17.11.040 of this chapter as being newly construction units,
and therefore warrant the provision of"conversion units".
Section 13: Section 17.11.090 of Title 17is hereby amended to read as follows
(the bold underlined text nBD[eG8ntS new l8OgU@g8 and the text
represents deleted language):
Section 17.11.090 Agreement.
The applicant shall sign an agreement binding the property owner and his/her successors in
interest to provide the agreed upon number ofunits as affordable units
the time ppeecribed, and agreeing to other conditions governing the affordable
housing units as may be required by ordinance orbythe planning commission orcity council. These
conditions may address unit configuration and oizm, reporting pequinarnento, city processing fees for unit
monitoring or such other matters which may be deemed appropriate by the city council.
The agreement shall be recorded against the property subject tuthe affordability requirement
prior to the recordation of a tract or parcel map or issuance of any certificate of occupancy for the project
subject to the original application. Should the applicant or his/her nuomaouoro in interest fail to abide by
the terms of the ogneonnent, the city shall have the authority to revoke certificates of occupancy and/or
place liens against the properties invo|ved, in addition to any other remedy allowed by law.
(part), 19974
Section 14: Section 17.11.110 of Title 17 is hereby amended to read as f011OVVS
(the bold underlined text represents new lQOgU8g8 and the stFikethFough text
r8Dr8S8nt8 deleted l8OgU2g8\:
Section 17.11.110 Reporting.
Where the units are provided as rental unito, the applicant or his/her successor in interest shall
provide on annual report to the city documenting that rents and tenant incomes are in 0000nd with the
agreement.
Where the units are provided as for-sale units, the low eF moderate ORGOFne purchaser of the unit
who gualified as a lower income household,very low income household, 12erson and family of low
and moderate income, or persons and families of moderate income, shall annually certify that he/she
continues to own the unit and document that the unit is owner occupied or rented to tenants whose
incomes are in accordance with the agreement. The seller shall notify the director by certified mail of any
change in property title, prior to completion of escrow. (Ord. 320 § 7 (part), 1997)
P.C. Resolution NO. 2008-15
Page 17 of 21
Section 15: Section 17.11.120 of Title 17 is hereby amended to read as follows
(the bold underlined text represents new language and the strikethr-eu text
represents deleted language):
Section 17.11.120 Resale.
When the for-sale units for lower income households, very
low income households, persons and families of low and moderate income, or persons and
families of moderate income are sold, the units shall be sold for no more than the affordability level
specified in the agreement. All sales commissions, escrow fees and other property transfer costs shall be
the responsibility of the seller and/or buyer. The units shall be sold to households whose income does not
exceed the affordability level specified in the agreement, subject to the review and approval of the
director. The new buyer of the unit shall provide documentation of income level to the director prior to
entering escrow. (paFt)-,44974
Section 16: Section 17.11.140 of Title 17 is hereby amended to read as follows
(the bold underlined text represents new language and the strikethr-o urh text
represents deleted language):
Section 17.11.140 Affordable housing requirements for nonresidential projects.
A. Applicability. The requirements of this section shall apply to all applications for construction,
expansion or intensification of nonresidential uses, including,, but not limited to, applications for
commercial projects, golf courses, private clubs and institutional developments. Applications to which this
section applies include, but are not limited to, applications for a tentative tract map, parcel map,
conditional use permit, coastal permit, building permit or other development entitlement whereby more
than thirty new full-time and/or part-time jobs are created in the city; or more than ten thousand square
feet of space will be created or converted. This requirement shall apply to any jobs or space created or
converted within any twelve month period.
B. Exemptions. The following developments shall be exempt:
1. Mixed use developments containing at least one low or very low income affordable housing unit
for every ten low or moderate income employees anticipated to be generated, or for every five thousand
square feet of nonresidential space. The residential units shall be available for occupancy within one year
of occupancy of the first nonresidential space within the project;
2. Projects where the applicant has agreed to provide at least one low or very low income affordable
housing unit for every ten low or moderate income employees anticipated to be generated, or for every
five thousand square feet of sernn}ers+al 8 ace nonresidential space either on the site, if residential
uses are allowed or conditionally allowed on the site, or at another location in the city. The residential
units shall be available for occupancy within one year of occupancy of the first nonresidential space within
the project;
3. Projects where the applicant has demonstrated to the satisfaction of the city that no-less than ten
employment opportunities for persons of low or very low income would be created;
4. Projects where the city finds the provision of affordable units to be infeasible pursuant to Section
17.11.080 of this chapter;
5. The reconstruction of any structure that has been destroyed by fire, flood,
earthquake or other act of God or nature.
P.C. Resolution No. 2008-15
Page 18 of 21
C. Fee Required. With the exception of development exempted pursuant to Section 17.11.140(B) of
this chapter, and except where it has been demonstrated not to be feasible pursuant to Section 17.11.080
of this chapter, developers of serersial-nonresidential development shall pay a residential impact fee
to be set by resolution of the city council. The fee shall be adequate to provide one low or very low
income affordable housing unit for each ten employees to be generated by the project. The fee per
affordable unit to be provided shall be equal to the difference between the median value of market rate
housing and the price affordable to low or very low income households. The fee shall be paid prior to
issuance of a certificate of occupancy.
D. Number of Employees Determination. For the purpose of determining the anticipated number of
new employees to be generated by a new development, typical employee generation rates for other,
similar businesses shall be submitted by the applicant to the city. Where a new development replaces a
previously existing nonresidential use, and replacement is commenced within twelve months, credit shall
be given for the number of employees employed by the previously existing use.
E. Rebate of Fees. If, within one year after the nonresidential project is fully occupied, evidence is
submitted to the director that fewer employees have been generated, or that the employees are in higher
income groups than had been anticipated, a portion of the residential impact fees may be rebated.
Evidence to be submitted may include, but is not limited to, W-2 forms for all employees working within
the project.
F. Administration. Nonresidential projects shall comply with the provision of Sections 17.11.080
(Feasibility); 17.11.090 (Agreement); 17.11.100 (Tenant/owner qualification); 17.11.110 (Reporting); and
Section 17.11.120 (Resale) of this chapter. (Ord. 320§ 7 (part), 1997)
Section 17: Chapter 17.96 of Title 17 is hereby amended to add, delete and/or
modify definitions as follows (the bold underlined text represents new language and
thetext represents deleted language):
17.96.365 Child care facility.
"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.
17.96.550 Density bonus.
"Density bonus" means a density increase of at yeast tweR+„_fiye P8FGenover the otherwise
maximum allowable residential density WhiGh would athepwise be allowed under the applicable zoning
families of moderate ;RGE)FRe, "density bemus" rne-a- An-rease of At least teR ,
1eGS8F PGFGentage is eele4Gted by the appliGaRt. (Ord. 394 § 10, 2003; Ord. 320 § 7 (part), ordinance
and land use element of the general plan as of the date of application by the applicant to the City.
17.96.555 Density, maximum allowable residential.
"Maximum allowable residential density" means the density allowed under the zoning
ordinance or if a range of density is permitted, means the maximum allowable density for the
specific zoning range applicable to the project.
17.96.575 Development, housing.
"Housing development99 means one or more groups of projects for residential units
constructed in the planned development of the city. For the purposes of chapter 17.11, "housing
P.C. Resolution No. 2008-15
Page 19 of 21
development" also includes a subdivision or common interest development, as defined in Section
1351 of the Civil Code, approved by the city, and consists of residential units or unimproved
residential lots and either a project to substantially rehabilitate and convert an existing
commercial building to residential use or the substantial rehabilitation of an existing multifamily
dwelling, as defined in subdivision (d) of Section 65863.4 of the Government Code, where the
result of the rehabilitation would be a net increase in available residential units.
17.96.585 Development standard.
"Development standard" includes site or construction conditions that apply to a
residential development pursuant to any ordinance, general plan element, specific plan, charter
amendment, or other local condition, law, policy, resolution,oLE29kiation.
17.96.1660 Senior resident, qualifying,
"Qualifying senior resident" means a resident meeting the definition of Section 54-.251.3 of the
California State Civil Code, specifically, an individual at least sixty-two years of age or an individual at
least fifty-five years of age residing in a senior citizen housing development of at least aRe huRdFed
fAyttly
y-five dwelling units. (GFd. 320 § 7 (part), 1997)
17.96.2120 1 Init "'able.17.96.2125 Units, affordable housing.
"Affordable rneain, f the FeRter' s household
is a rental unot wh4Gh deer, RGt 8XGeed thirty peFGBRt e
1 Sale URit i- iWhiGh the sales PFiGe of thee unit does n ,---A Wn
the PUFGhaser-s
aRRual household iRGOFR8. (01rd. 320 1, 7 (paFt), 1997)
17.96.214 0 WRit, 10W IRGOFRe
"LOW iRGGFRe Ulmlit" rneaRs a dwelling URit WhiGh F9ntS fGF Re FiqeFe than thiFty peFGBRt Of SiXty p9FGent Gf
the rnpdm;;n iRGOMe fGF Los AR@eles County. (GFd. 320 § 7 (part), 1997-)
"Affordable housing units" means units in a housing development that are subject to
occupancy restrictions based upon the income of the occupants or owner,or both.
Section 23: Section 17.96.2170 UnIt, V8FY IOW *RGGmejMnjt Very Low Income) of ter
17.96 of Title 17 of the Municipal Code is hereby revoked.
"VeFy low ORGOFR8 Unit" MARRA A rl�'AielliRg L]Rit WhiGh FeRtS fOF Re FRore thaR thiFty PeFGeRt of fifty perGent
of the Fnedlain ;nn-emp i�r
...- la. Los ARgeleS GOURty. (GFd. 320§ 7 (paFt), 1997)
Section 18: The rights given by any approval granted under the terms of Title
17 of the Rancho Palos Verdes Municipal Code prior to the effective date of the
adoption of said ordinance shall not be affected by the amendments to Title 17 by this
ordinance and shall continue in effect until and unless they are modified, revoked,
expired or are otherwise terminated according to the terms of the approval or the terms
of Title 17 as they existed prior to the effective date of this ordinance.
Section 19: The amendments to Title 17 of the Rancho Palos Verdes Municipal
Code as identified herein shall apply to all development applications submitted after the
effective date of the adoption of said ordinance and to all development applications that
have not been deemed complete prior to the effective date of the adoption of said
ordinance.
Section 20: For the foregoing reasons, and based on the information and
findings included in the Staff Report, Minutes, and other records of proceedings, the
P.C. Resolution No. 2008-15
Page 20 of 21
Planning Commission of the City of Rancho Palos Verdes hereby recommends that the
City Council adopt an Ordinance amending Chapter 17.11 (Affordable Housing) and
Chapter 17.96 (Definitions) of Title 17 of the City's Municipal Code to conform to State
Density Bonus laws, to implement City Council policy pertaining to the location of
affordable housing units, and to make changes to the Section pertaining to affordable
housing requirements for non-residential developments.
PASSED, APPROVED, AND ADOPTED this 8th day of April 2008, by the following vote:
AYES: Commissioners Gerstner, Knight, Ruttenberg, Tetreault, Tomblin, Vice
Chair Lewis and Chairman Perestam
NOES: None
ABSTENTION: None
ABSENT: None
RECUSALS: None
Jo Ro:s,AICP
Di ector of Plann' g, ilding
an • Co a Enforcnt; and,
Secretary to the Planning Commission
Stephen Perestam
Chairman
P.C. Resolution No. 2008-15
Page 21 of 21