§ 24-133. Incentives.

A.

Eligibility. An applicant who applies for a density bonus may also request one (1) to three (3) incentives, as identified in Subsection D (Available Incentives), as needed to contribute to a development project's financial feasibility.

B.

Number of Incentives. An applicant may request the following number of incentives:

1.

One (1) incentive for projects that include at least ten (10) percent of the total units for low-income households, at least five (5) percent for very low-income households, or at least ten (10) percent for persons and families of moderate income in a common-interest development.

2.

Two (2) incentives for projects that include at least twenty (20) percent of the total units for low-income households, at least ten (10) percent for very low-income households, or at least twenty (20) percent for persons and families of moderate income in a common-interest development.

3.

Three (3) incentives for projects that include at least thirty (30) percent of the total units for low-income households, at least fifteen (15) percent for very low-income households, or at least thirty (30) percent for persons and families of moderate income in a common-interest development.

C.

Additional Incentives. The County may, at its discretion, grant additional incentives to increase the number of affordable units provided or to increase the affordability of the affordable units.

D.

Available Incentives. Each development incentive may include one (1) and only one (1) of the following types of regulatory relief or change:

1.

Reduced minimum parcel sizes or dimensions.

2.

Reduced minimum setbacks.

3.

Reduced minimum building separation requirements.

4.

Increased maximum floor area ratio.

5.

Increased maximum building height.

6.

Reduced on-site parking requirements.

7.

The waiver, reduction or deferral of planning, plan check, construction permit and/or development impact fees.

8.

Approval of mixed-use zoning for the project site in conjunction with the housing development, 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 development and the existing or planned development in the area where the proposed development will be located.

9.

Direct financial aid, such as a redevelopment set-aside or community development block grant funding, in the form of a loan or grant to subsidize or provide low-interest financing for on-site or off-site improvements, land or construction costs.

10.

Other similar regulatory incentives or concessions that result in identifiable and financially sufficient cost reductions.

E.

Justification for Incentives. An applicant requesting an incentive shall show, using one (1) of the following methods, that the incentive is necessary to make the affordable units economically feasible:

1.

A development pro forma showing the capital costs, operating expenses, return on investment, loan-to-value ratio, debt coverage ratio, the contributions provided by any applicable subsidy programs, the economic effect created by the minimum thirty (30) year use and income restrictions on the affordable housing units, and the benefit created by the density bonus and the requested incentives.

2.

An appraisal report indicating the value of the density bonus and of the incentives.

3.

A funds statement identifying the projected financing gap for the project. The analysis shall show how much of the funding gap is covered by the density bonus and how much by the incentives/concessions.

F.

Provision of Incentives. The County shall provide the specific incentive or incentives requested by an applicant, unless the County makes a written finding, based upon substantial evidence, of any of the following:

1.

The incentive is not required in order to provide for affordable housing costs, as defined in Section 50052.5 of the Health and Safety Code, or for rents for the targeted units to be set as specified in this section.

2.

The incentive would have a specific adverse impact, as defined in Government Code Section 65589.5(d)(2), 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-income, low-income and moderate-income households.

3.

The incentive is contrary to State or federal law.

(Ord. No. 4062, § 1, 9-10-13)