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2020-09 Density Bonus Law ORDINANCE 2020-09 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ENCINITAS, CALIFORNIA, ADOPTING AMENDMENTS TO CHAPTER 30.16.020(C) (DENSITY BONUS REGULATIONS) OF THE ENCINITAS MUNICIPAL CODE TO BE CONSISTENT WITH STATE LAW. The City Council of the City of Encinitas does hereby find and declares as follows: WHEREAS, California Government Code Section 65915(a) requires that cities adopt an ordinance that specifies how compliance with State Density Bonus law will be implemented; WHEREAS, the 2013-2021 Housing Element approved by the City Council on March 13, 2019 contains Housing Element Program 2D, which provides that the City will amend its Zoning Code to ensure that the density bonus ordinance continues to be consistent with State law; WHEREAS, the City finds that the proposed amendments to the City's Municipal Code are exempt from environmental review pursuant to General Rule, Section 15061(b)(3) of the California Environmental Quality Act (CEQA) Guidelines since there would be no possibility of a significant effect on the environment. The ordinance being considered specifies how the City will comply with and implement State density bonus law, and adoption is required pursuant to Government Code Section 65915(a). The bonuses, incentives, and waivers permitted by the ordinance are allowed required by State law and the State law effective January 1, 2021, and this ordinance does not permit any bonuses, incentives, or waivers greater than those allowed by State law. The density bonus increase to 39 percent for moderate income and 41 percent for very low and low-income contained in Section 30.16.020(C)(5)(f)does not increase the number of units that may be constructed on any property, because under AB 2345, effective January 1, 2021, the maximum density bonus would be increased to 50 percent if the City does not adopt its own increased density program; WHEREAS, a Public Notice of Availability of proposed Local Coastal Plan Amendments (LCPA) was issued which opened a six-week public review period that ran from May 1, 2020 and concluded on June 12, 2020 and was re-issued which opened a six-week public review period that ran from October 30, 2020 and concluded on December 11, 2020; WHEREAS, the proposed Local Coastal Program Amendment meets the requirements of, and is in conformity with, the policies of Chapter 3 of the Coastal Act and does not conflict with any coastal zone regulations or policies with which future development must comply; WHEREAS, in accordance with Section 65915(s), effective January 1, 2021, the Ordinance includes a housing incentive program in Section 30.16.020(C)(5)(0 as an alternative to that proposed in AB2345, as described in the staff reports submitted to the Planning Commission for its meeting of November 19, 2020 and to the City Council for its meeting of December 9, 2020; WHEREAS,the Planning Commission conducted a Public Hearing on May 21, 2020, June 18, 2020 and November 19, 2020 for the purpose of considering amendments to Title 30 of the Encinitas Municipal Code, and considered public testimony and made a recommendation to the City Council to adopt the proposed amendments; WHEREAS,the Planning Commission adopted Planning Commission Resolution No. PC- 2020-23,on file with the Office of the City Clerk and incorporated by this reference, recommending approval with modifications of said Ordinance; WHEREAS, the City Council conducted a Public Hearing on December 9, 2020 and December 16, 2020 for the purpose of considering amendments to Title 30 of the Encinitas Municipal Code; WHEREAS,the City Council has duly considered the totality of the record and all evidence submitted into the record, including public testimony and the evaluation and recommendations by staff, presented at said hearing; WHEREAS, notices of said public hearings were made at the time and in the manner required by law; WHEREAS, the City Council finds that this Ordinance is intended to be carried out in a manner in full conformance with the California Coastal Act of 1976 and the Development Services Director is hereby authorized to submit this Ordinance as part of the Local Coastal Program Amendment to the California Coastal Commission for their review and adoption; and WHEREAS, based on the totality of the record and evidence described and referenced in this Ordinance, the City Council finds that the proposed text amendments are consistent with the purposes of the General Plan, Municipal Code, and adopted Local Coastal Program. NOW, THEREFORE, the City Council of the City of Encinitas, California, hereby ordains as follows: SECTION ONE: SECTION 30.16.020 (SPECIAL PROVISIONS) OF TITLE 30, ZONING Subsection 30.16.020(C) (Density Bonus Regulations) of Section 30.16.020 (Special Provisions) of Title 30 of the Encinitas Municipal Code is hereby amended to read as follows (stfikeeut is used to denote existing text being deleted; underline is used to denote new text being added): C. Density Bonus Regulations. 1. The purpose of this subsection is to specify how compliance with Government Code Sections 65915, 65915.5, 65915.7, and 65917 ("State Density Bonus Law") will be implemented, as required by Government Code Section 65915(a). 2. Definitions. The definitions found in State Density Bonus Law shall apply to the terms contained in this subsection. In addition to State Density Bonus Law,the following definitions shall apply: "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 proiect. If 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. In Encinitas, maximum allowable residential density allowed in the General Plan is based on net acreage. "Maximum Allowable Gross Residential Density" means the maximum number of dwelling units allowed under the General Plan per net acre of land. "Specific Adverse Impact" means a significant quantifiable. direct, and unavoidable impact to public health and safety, or the physical environment, or on any real property that is listed or eligible for listing, in the California Register of Historical Resources based on objective, identified written public health or safety standards policies or conditions as they existed on the date the application was deemed complete, and for which there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact without rendering the development unaffordable to lower-income and moderate- income households. Inconsistency with the Zoning Ordinance or General Plan land use designation or eligibility to claim a welfare exemption under Revenue and Taxation Code Section 214(8) shall not constitute a specific, adverse impact upon the public health or safety. 3. Applicability. A"housing development" as defined in State Density Bonus Law means a development project for five or more residential units, including mixed-use developments. A housing development shall be eligible for a density bonus and other regulatory incentives that are provided by State Density Bonus Law when the applicant seeks and agrees to provide low, very-low, senior or moderate-income housing units or units intended to serve transitional foster youth, disabled veterans, lower income students or homeless persons in the threshold amounts specified in State Density Bonus Law. A"housing development" for purposes of a density bonus application for a mixed-use project includes only the residential component of a mixed-use project. . A "commercial development" as defined in subsection C.11 shall be eligible for a commercial development bonus as provided in subsection C.11. 4. Application Requirements. An application for a density bonus, incentive, concession. or waiver under this subsection 30.16.020(C) shall be submitted with the first application for approval of a housing development and shall be processed concurrently with all other applications required for the housing development. The applicant shall be informed whether the application is complete consistent with provisions and timelines of Government Code Section 65943. At the time the application is deemed complete under Government Code Section 65943, the City will provide the applicant with a determination regarding the amount of density bonus and the parking ratio for which the housing development is eligible and whether adequate information has been submitted for the City to make a determination on incentives, concessions, and waivers. The application shall be on a form prescribed by the City and in addition to any information required for other applications, shall include the following information: a. A description of the proposed housing development and a site plan, elevations, sections, and floor plans. with the total number and location of all dwelling units, affordable units, and density bonus units proposed: ab. Any applicant requesting a density bonus and any incentive(s) or concession(s), waiver(s), parking ratioedustiens, or commercial development bonus provided by State Density Bonus Law shall submit a density bonus report as described below concurrently with the filing of the planning application for the first discretionary permit required for the housing or commercial development. The requests contained in the density bonus report shall be processed concurrently with the planning application. The applisant shall he WGFFned 65943. Vic. The density bonus report shall include the following minimum information: i. Requested 9density Bbonus for the #housing 9development. (A) The zoning and general plan land use designations. Maximum Allowable Gross Residential Density, Maximum Allowable Residential Density, assessor's parcel number(s) of the project site, and a description of any density bonus, concession or incentive, or waiver requested: (Ag) Summary table showing the maximum number of dwelling units permitted by the zoning and general plan excluding any density bonus units, proposed affordable units by income level, proposed bonus percentage, number of density bonus units proposed, total number of dwelling units proposed on the site, and resulting density in units per acre. The applicant must demonstrate that the proposed units will satisfy the requirements of Government Code Section 65915(b) and identify whether the applicant is requesting a bonus under subparagraph (A). (B). (C) (D). (E). (F). or(G) of Government Code Section 65915(b)(1). (Bg Proposed rents and sale prices demonstrating that the any proposed lower and moderate-income units will satisfy the requirements of Government Code Section 65915(c) for the selected category under Section 65915(b)(1). showing the number and IGGatien of all PFOpesed units, designating the (G!?) The zoning and geneFal plan designations and aSSOSSOF'S PaFGel numbeF(S) of the housing development site. (DE) GaIGUlatien of the maximum nurnbeF of dwelling units peFFA'tted d . elopmen{ evni .dine any density bonus unilso (E ED Documentation demonstrating that the proiect is meeting the replacement housing requirements of Government Code Section 65915(c)(3) including submittal of the following information: i_A description of all dwelling units existing or demolished on the site, by bedroom size, in the five-year period preceding the date of submittal of the application and identification of any units rented in the five-year period. If dwelling units on the site are currently rented, income and household size of all residents of currently occupied units, if known. If any dwelling units on the site were rented in the five-year period but are not currently rented or have been demolished, the income and household size of residents occupying dwelling units when the site contained the maximum number of dwelling units, if known. ii. (F) Description of any recorded covenant, ordinance, or law applicable to the site that restricted rents to levels affordable to very low- or lower-income households in the five-year period preceding the date of submittal of the application. iii. Description of any dwelling units on the site subject to rent or price control through a federal, state, local, or other public entity's exercise of the police power local in the five-year period preceding the date of submittal. (6g) If a density bonus is requested for a land donation, the location of the land to be dedicated, proof of site control, and reasonable documentation that each of the requirements included in Government Code Section 65915(g) can be met. ii. Requested Incentive(s) or Concession(s) for a Housing Development. In the event an application proposes incentives or concessions for a housing development pursuant to State Density Bonus Law, the density bonus report shall include the following minimum information for each incentive or concession requested, shown on a site plan if appropriate: (A) The city's usual development standard and the requested development standard.or other regulatory incentive. and the applicant's eligibility under Government Code Section 65915(d) for the number of incentives or concessions requested. (B) Except where mixed-use zoning is proposed as an incentive, reasonable documentation to show that any requested incentive or concession will result in identifiable and actual cost reductions to provide for affordable housing costs or rents, including submittal of a financial analysis or report providing reasonable documentation that the requested concessions and incentives will: 1) result in identifiable and actual cost reductions: and 2) are required in order to provide for affordable housing costs as defined in Health and Safety Code Section 50052.5, or for rents for the affordable units to be set as specified in Government Code Section 65915(c). The cost of reviewing any required financial information, including, but not limited to, the actual cost to the City for hiring a consultant to review the financial data, shall be borne by the applicant. (C) If approval of mixed-use zoning is proposed, reasonable documentation that nonresidential land uses will reduce the cost of the housing development, that the nonresidential land uses are compatible with the housing development and the existing or planned development in the area where the proposed housing development will be located, and that mixed-use zoning will provide for affordable housing costs or rents. iii. Requested Waiver(s)for a Housing Development. In the event an application proposes waivers of development standards for a housing development pursuant to State Density Bonus Law, the density bonus report shall include the following minimum information for each waiver requested aaallsaEleFt shown en a site plan if appFOPFoate: (A) A table showing Tthe city's usual required development standards and the requested development standards as depicted on the required site Plans and elevations for east-Feeuested-all-locations on the site where a waiver is requested. (B) Reasonable documentation t�the development standaFds 658 Fg to demonstrate that each development standard for which a waiver is requested would Physically preclude the construction of the housing development with the requested density bonus and the requested incentives/concessions. The cost of reviewing any required information supporting the reauest for a waiver, including, but not limited to, the actual cost to the City of hiring a consultant to review the requested waiver, shall be bome by the applicant. Reasonable documentation consists of at least a site plan and elevations of the proposed project with the development standards required by the zoning ordinance overlaved on the site plan and elevations, demonstrating the Physical limitations that preclude the density, concessions, and incentives requested. The documentation shall demonstrate the physical limitations at each location where a waiver is requested and shall demonstrate that other alternatives requiring fewer waivers or no waivers are not physically feasible at the density and with the concessions and incentives requested. iv. Requested Parking Redustleaatio for a Housing Development. In the event an application requests to utilize the ffFepeses-a parking reduefiGngtio for a housing development pursuant to Government Code Section 65915(p), a table showing parking required by the zoning regulations, parking proposed under Government Code Section 65915(p), and reasonable documentation that the project is eligible for the requested parking ratio and meets all requirements for that ratio contained in Section 65915(p) Fedustlen. v. Child Care Facility for a Housing Development. If a density bonus or incentive is requested for a child care facility in a housing development, reasonable documentation that all of the requirements included in Government Code Section 65915(h) can be met. vi. Condominium Conversion. If a density bonus or incentive is requested for a condominium conversion, reasonable documentation that all of the requirements included in Government Code Section 65915.5 can be met. vii. Commercial Development Bonus. If a commercial development bonus is requested for a commercial development, the application shall include the proposed partnered housing agreement and the proposed commercial development bonus, as defined in subsection CA 1, and reasonable documentation that each of the standards included in subparagraph C.11.c has been met. viii. Fee. Payment of any fee in an amount set by resolution of the City Council for staff time necessary to determine compliance of the Density Bonus Plan with this Section 13.60.020(C) and State Density Bonus Law. ix. Application. The City Council authorizes the Development Services Director to develop, Dublish and from time to time update or amend permit application requirements forms checklists -guidelines informational handouts and other related materials that the Director finds necessary, appropriate or useful for processing any application -governed under this subsection 30.16.020(C). All such requirements and materials must be in written form. Any changes shall be posted on the City's website within 30 days of the change. 5. Density Bonus. a. In determining the total number of units to be granted, each component of any density calculation, including base density and bonus density, resulting in fractional units shall be separately rounded up to the next whole number. b. When calculating the number of affordable units needed for a given density bonus, any fractions of affordable dwelling units shall be rounded up to the next whole number. c. When calculating the base density of a proposed project. density bonus means a density increase over the otherwise Maximum Allowable Gross Residential Density as of the date of application as required by Government Code Section 65915(f). GA. Each housing development is entitled to only one density bonus. If a housing development qualifies for a density bonus under more than one iaserrae category listed in Government Code Section 65915(b)(1)—er-add4ienally-as SeROOF housing GF as housing intended te sewe transitional festeF youth, disabled YeteFaF;s, 9F the applicant shall select the category under which the density bonus is granted. Density bonuses forfeFH two or more than erne categoriesy may not be combined. d-e. The density bonus units shall not be included in determining the number of affordable units required to qualify a housing development for a density bonus pursuant to State Density Bonus Law. e-f. The applicant may elect to accept a lesser percentage of density bonus than the housing development is entitled to, or no density bonus, but no reduction will be permitted in the percentages of required affordable units contained in Government Code Sections 65915(b), (c), and (f). Regardless of the number of affordable units, no housing development shall be entitled to a density bonus -greater than that allowed by Section 65915(f) as it was effective through December 31 2020 except that to incentivize the development of affordable housing additional bonuses may be provided as follows: Percentage Very Low-Income Units Percentage Density Bonus 12 36.5 13 38 14 39.5 15 41 Percentage Low-Income Units Percentage Density Bonus 21 36.5 22 38 23 39.5 24 41 Percentage Moderate-Income Units Percentage Density Bonus 41 36 42 37 43 38 44 39 As provided by Section 65915(s), the adoption of this housing program as a oart of this ordinance exempts the City from the changes made to Section 65915(d)(2)(C) and (D) and from the changes made to the density tables under Section 65915(f) by Chapter 197 Statutes of 2020. 6. Incentives and Concessions and Waivers. a. inoenteves OnGlude '"nGentaves and GORGessions" as defined in State Density Bonus Law. The number of incentives or concessions that may be requested shall be based upon the number the applicant is entitled to pursuant to State Density Bonus Law. b. Nothing in this subsection requires the provision of direct financial incentives for the housing development, including, but not limited to, the provision of financial subsidies, publicly owned land, fee waivers, or waiver of dedication requirements. The city, at its sole discretion, may choose to provide such direct financial incentives. c. Waivers may be requested for oroiects that exceed the Maximum Allowable Residential Density or that receive incentives or concessions. sd. An affordable housing oroiect that is not subiect to any limitations on density under Government Code Section 65915(ef)(3) shall not be eligible to receive any waivers. 7. Local Coastal Plan Consistency. a. State Density Bonus Law provides that it shall not be construed to supersede or in any way alter or lessen the effect or application of the California Coastal Act of 1976, and further provides that the granting of a density bonus or an incentive or concession shall not be interpreted, in and of itself, to require a local coastal plan amendment. b. For development within the coastal zone, any requested density bonus, incentive(s) or concession(s). waiver(s), parking redastienatio(s), or commercial development bonus shall be consistent with all applicable requirements of the certified Encinitas Local Coastal Program, with the exception of density. 8. Review Procedures. All requests for density bonuses, incentives or concessions, parking redue ienatios, waivers, or commercial development bonuses shall be considered and acted upon by the approval body with authority to approve the development within the timelines prescribed by Government Code Sections 65950 et seq., with right of appeal to the City Council. a. Eligibility for Density Bonus, Incentive(s) or Concession(s). Parking Ratioedastien, and/or Waiver(s) for a Housing Development. To ensure that an application for a housing development conforms with the provisions of State Density Bonus Law and the Coastal Act, the staff report presented to the decision-making body shall state whether the application conforms to the following requirements of state law: i. The housing development provides the affordable units or senior housing required by State Density Benus L&AF pursuant to Government Code Sections 65915(b). (c). and (f) to be eligible for the density bonus and J any incentives or concessions, parking ratio edustier}, or waivers requested, including the replacement of units rented or formerly rented to low and very low-income households as required by Government Code Section 65915(c)(3). ii. Any requested incentive or concession will result in identifiable and actual cost reductions to provide for affordable housing costs or rents; except that, if a mixed-use development is requested, the application must instead meet all of the requirements of Government Code Section 65915(k)(2). iii. The development standards for which a waiver is requested would have the effect of physically precluding the construction of a development at the densities or with the concessions or incentives permitted by Government Code Section 65915. iv. The housing development is eligible for any requested the parking rati requested under Government Code Section 65915(p). v. If the housing development is in the coastal zone, the requested density bonus and any requested incentive(s) or concession(s), waiver(s), or parking ratio (s) are consistent with all applicable requirements of the certified Encinitas Local Coastal Program, with the exception of density. vi. If the density bonus is based all or in part on donation of land, all of the requirements included in Government Code Section 65915(g) have been met. vii. If the density bonus or incentive or concession is based all or in part on the inclusion of a child care facility, all of the requirements included in Government Code Section 65915(h) have been met. viii. If the density bonus or incentive or concession is based all or in part on the inclusion of affordable units as part of a condominium conversion, all of the requirements included in Government Code Section 65915.5 have been met. b. If a commercial development bonus is requested for a commercial development, the decision-making body shall make a finding that the development complies with all of the requirements of subparagraph C.11.c, that the city has approved the partnered housing agreement, and that the commercial development bonus has been mutually agreed upon by the city and the commercial developer. If the project is in the coastal zone, the decision-making body shall also find that the commercial development bonus is consistent with all applicable requirements of the certified Encinitas Local Coastal Program, with the exception of density. c. The decision-making body shall grant an incentive or concession requested by the applicant unless it makes a written finding, based upon substantial evidence, of any of the following: i. The proposed incentive or concession does not result in identifiable and actual cost reductions to provide for affordable housing costs, as defined in Section 50052.5 of the Health and Safety code, or for affordable rents, as defined in Section 50053 of the Health and Safety Code; or ii. The proposed incentive or concession would be contrary to state or federal law; or iii. The proposed incentive or concession would have a specific, adverse impact as defined in Section 30.16.020(C)(2). upon publis health OF safety OF the phys'Gal en-AFORM-P-nt oF en. MY Feel PFOpeFty that is Ii6ted in the Genditions as they existed en the date that the applisatieR far the housing develepment was deemed eemplete. d. The decision-making body shall grant the waiver of development standards requested by the applicant unless it makes a written finding, based upon substantial evidence, of any of the following: i. The development standards requested to be waived will not have the effect of physically precluding the construction of a housing development at the Permitted density or with the incentives or concessions, and, as a consequence, grant of the waiver would be contrary to state law: or i-ii. The proposed waiver would be otherwise contrary to state or federal law; or R iii. The proposed waiver would have an adverse impact on any real property listed in the California Register of Historic Resources; or 4i-iv. The proposed waiver would have a specific, adverse impact as defined in Section 30.16.020(C)(2). Lipen publiG health OF Safety 9F the physiGal enViFenirnent, and there is no feasible Fnethed to satiSfaGteFily sinnifinnnf quantifiable, direGt, and unavoidable im nn1 based on objenfi..e identified Witten nu blip health OF safety standards aliGies OF randitions a they :sled on the date that the nnnl'nnd'nn fer the housing development was deemed Gemplete. e. If any density bonus, incentive or concession, parking ratioedt+stieFl, waiver, or commercial development bonus is approved pursuant to this chapter, the applicant shall enter into an affordable housing agreement or senior housing agreement with the City pursuant to subsection C.9. 9. Affordable Housing Agreement and Senior Housing Agreement. Except where a density bonus, incentive or concession, waiver, parking ratioe +stiea, or commercial development bonus is provided for a market-rate senior housing development, the applicant shall enter into an affordable housing agreement with the City, in a form approved by the City Attorney, to be executed by the City Manager, to ensure that the requirements of this subsection are satisfied. The affordable housing agreement shall guarantee the affordability of the affordable units for a minimum of 55 years or a longer period of time if required by the construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy program; shall identify the type, size and location of each affordable unit; and shall specify phasing of the affordable units in relation to the market-rate units. Where a density bonus, waiver, or parking ratioedastien is provided for a market-rate senior housing development, the applicant shall enter into a senior housing agreement and restrictive covenant with the city, running with the land, in a form approved by the City Attorney, to be executed by the City Manager, to require that the housing development be operated as "housing for older persons" consistent with state and federal fair housing laws. The executed affordable housing agreement or senior housing agreement shall be recorded against the housing development prior to final or parcel map approval, or, where a map is not being processed, prior to issuance of building permits for the housing development. The affordable housing agreement or senior housing agreement shall be binding on all future owners and successors in interest. 10. Design,and-Quality and Location. a. The City may not issue building permits for more than 50 percent of the market rate units until it has issued building permits for all of the affordable units, and the City may not approve any final inspections or certificates of occupancy for more than 50 percent of the market rate units until it has issued final inspections or certificates of occupancy for all of the affordable units. b. Affordable units shall be comparable in exterior appearance and overall quality of construction to market-rate units in the same housing development. Interior finishes and amenities may differ from those provided in the market rate units, but neither the workmanship nor the products may be of substandard or inferior quality as determined by the city. c. In multi-family housing developments, the affordable units shall be at least seventy-five percent (75%) of the average square footage of all market-rate units with the same bedroom count. In single-family housing developments, the affordable units shall be at least seventy-five percent (75%) of the average square footage of all market-rate units with the same bedroom count, not to exceed 2,000 square feet. For all housing developments, the unit mix based on bedroom count provided for affordable units shall be proportional to the unit mix based on bedroom count provided for market-rate units. Examples are illustrated in the City's guidelines. The numbeF ef bedFOOMS of the affeFdable units shall at least equal the Fni i numbeF of bedFeGFnS of the Madiet rate units. d. Affordable units shall be dispersed throughout the housing development on each floor, elevation. and section of the building(s) and throughout the site such that: i. No more than 50 percent of the proposed affordable housing units are consolidated into one structure in developments with more than one multi-unit structure, and ii. No more than 20 Percent of affordable housing units in a single multi-unit structure may be located adjacent to each other or stacked on consecutive floors unless it is unavoidable due to the required unit mix and distribution, and iii. No more than 20 percent of the affordable housing units may be located adjacent to each other within single-family residential subdivisions. e. Affordable units shall have similar access to amenities as market rate units including but not limited to views and access to open space and shall have similar protection from environmental impacts, including but not limited to distance from arterial and collector streets and from adiacent non-residential land uses. f. When a housing development proposes for sale and for rent units, the affordable units shall be dispersed proportionally between for sale and for rent units. g_ The dispersion requirements of this subsection shall not be applicable if the affordable units are financed with low-income tax credits or consist of affordable senior housing. 11. Commercial Density Bonus. a. The following definitions shall apply to this subsection CA 1: i. "Commercial development" means a development project for nonresidential uses. ii. "Commercial development bonus" means a modification of development standards mutually agreed upon by the city and a commercial developer and provided to a commercial development eligible for such a bonus under subparagraph CA 1.c. Examples of a commercial development bonus include an increase in floor area ratio, increased building height, or reduced parking. iii. "Partnered housing agreement" means an agreement approved by the city between a commercial developer and a housing developer identifying how the commercial development will provide housing available at affordable ownership cost or affordable rent consistent with subparagraph C.11.c. A partnered housing agreement may consist of the formation of a partnership, limited liability company, corporation, or other entity recognized by the state in which the commercial developer and the housing developer are each partners, members, shareholders, or other participants, or a contract between the commercial developer and the housing developer for the development of both the commercial development and the housing development. b. When an applicant proposes to construct a commercial development and has entered into a partnered housing agreement approved by the city, the city shall grant a commercial development bonus mutually agreed upon by the developer and the city. The commercial development bonus shall not include a reduction or waiver of fees imposed on the commercial development to provide for affordable housing. c. The partnered housing agreement shall include all of the following provisions: i. The housing development shall be located either: (A) on the site of the commercial development; or (B) on a site within the city that is within one- half mile of a major transit stop and is located in close proximity to public amenities, including schools and employment centers. ii. At least 30 percent of the total units in the housing development shall be made available at affordable ownership cost or affordable rent for low- income households, or at least 15 percent of the total units in the housing development shall be made available at affordable ownership cost or affordable rent for very low-income households. iii. The commercial developer must agree either to directly build the affordable units; donate a site consistent with subparagraph (i) above for the affordable units; or make a cash payment to the housing developer for the affordable units. d. Any approved partnered housing agreement shall be described in the city's housing element annual report as required by Government Code Section 65915.7(k). 12. Interpretation. If any portion of this subsection 30.16.020C conflicts with State Density Bonus Law or other applicable state law, state law shall supersede this subsection. Any ambiguities in this section shall be interpreted to be consistent with State Density Bonus Law. All code references in this ordinance include all successor provisions. SECTION TWO: SEVERABILITY If any section, subsection, sentence, clause, phrase or word of this Ordinance is for any reason held to be invalid by a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed and adopted this Ordinance, and each and all provisions hereof, irrespective of the fact that one or more provisions may be declared invalid. SECTION THREE: PUBLIC NOTICE AND EFFECTIVE DATE The City Clerk is directed to prepare and have published a summary of the ordinance no less than five days prior to consideration of its adoption, and again within 15 days following adoption, indicating the votes cast. This Ordinance will become effective following certification by the California Coastal Commission as being consistent with the Local Coastal Program for the City of Encinitas and California Coastal Act. SECTION FOUR: INTRODUCTION This Ordinance was introduced on December 9, 2020. PASSED, APPROVED AND ADOPTED this 161 day of December, 2020 at a regular meeting of the City Council. Catherine S. Blakespear, Mayor ATTEST: Kathy hlol woo , City Clerk APPROVED AS TO /FORM Les ie E. Devaney, City tto ey CERTIFICATION: I, Kathy Hollywood, City Clerk of the City of Encinitas, California, do hereby certify under penalty of perjury that the foregoing Ordinance was duly and regularly introduced at a meeting of the City Council on the 9'h day of December, 2020 and that thereafter the said ordinance was duly and regularly adopted at a "'�4 meeting of the City Council on the 16th day of December, 2020 by the following vote, to wit: AYES: Blakespear, Hinze, Kranz, Mosca NOES: None ABSENT: Hubbard ABSTAIN: None IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Encinitas, California, on this�-J day of December, 2020. Kat y Holl wood, i Clerk