2020-112 Density Bonuses for Affordable Housing RESOLUTION 2020-112
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ENCINITAS
ADOPTING A HOUSING PROGRAM TO INCENTIVIZE THE DEVELOPMENT OF
AFFORDABLE HOUSING BY ALLOWING FOR DENSITY BONUSES UP TO 41 PERCENT
WHEREAS, Encinitas Municipal Code Section 30.16.020(C) (DENSITY BONUS
REGULATIONS) implements the requirements of Government Code Section 65915 (state density
bonus law) to incentivize the construction of affordable units through the provision of density
bonuses and other benefits; and
WHEREAS, the California Legislature has adopted AB 2345 (Chapter 197, Statutes of
2020), increasing the allowable density bonus from 35 percent to 50 percent in exchange for a
minimal four percent increase in the percentage of affordable units in a development (allowing a
50 percent bonus for 15 percent very low income units, 24 percent lower income units, and 44
percent moderate income units) and decreasing the required percentage of affordable units in a
development to qualify for incentives and concessions; and
WHEREAS, AB 2345 will become effective on January 1, 2021; and
WHEREAS, if prior to January 1, 2021 the City adopts a housing program or ordinance,
or both, that incentivizes the development of affordable housing by allowing bonuses that exceed
35 percent, the City is exempt from the proposed increase to the density bonus and the incentives
and concession requirements imposed by AB 2345; and
WHEREAS, in accordance with Section 65915(s), effective January 1, 2021, the City
Council has adopted amendments to Section 30.16.020(C) that include a housing incentive
program in Section 30.16.020(C)(5)(f) 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; and
WHEREAS, the proposed housing incentive program was reviewed by the Planning
Commission cat a Public Hearing on November 19, 2020, where the Planning Commission
considered public testimony and made a recommendation to the City Council to adopt the
proposed incentive program included in Section 30.16.020(C)(5)(f); and
WHEREAS, the housing incentive program adopted by this resolution will encourage the
development of affordable housing, as described in the staff reports provided on December 9 and
16, for reasons that include the following:
• Encinitas needs affordable housing, not market-rate housing;
• AB 2345 provides very large increases in market-rate housing for very small increases in
affordable housing;
• The existing density bonus statute has provided adequate incentives. In Encinitas, most
housing projects are density bonus projects, and the City has approved 32 density bonus
projects;
• Proposed program has incentives similar to existing incentives; and
• Terner Center for Housing Innovation found "the proposed changes in AB 2345 are
slightly less attractive than the existing law...AB 2345's incentives offer less value across
the board than our baseline model;" and
WHEREAS, the availability of a 50 percent density bonus for only 15 percent affordable
units in a development may discourage the development of affordable housing under AB 1763
(Chapter 666, Statutes of 2019) which allows an 80 percent density bonus but requires 100
percent affordable units; and
WHEREAS, developers in Encinitas have effectively used the existing density bonus
incentives, which have been determined to provide a higher rate of return than the proposed
incentives; and
WHEREAS, the City's housing program will incentivize the development of affordable
housing by increasing the maximum density bonus from 35 percent to 39 percent for moderate
income and 41 percent for very low and low-income for projects not including 100 percent
affordable units; and
WHEREAS, the City finds that the proposed housing incentive program is 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; and
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 of Section 30.16.020(C)(5)(f); and
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 and adopting the housing incentive program incorporated in those amendments;
and
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; and
WHEREAS, notices of said public hearings were made at the time and in the manner
required by law; and
WHEREAS, the City's police power provides the City with the authority to adopt an
affordable housing program to further the public health, safety, and welfare; and
NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED by
City Council of the City of Encinitas hereby:
Adopts a housing program increasing the maximum allowed density bonus to 39 percent for
moderate income and 41 percent for very low and low-income from 35 percent as follows:
Housing Incentive Program
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
PASSED, APPROVED AND ADOPTED this 16' day of December 2020, by the City
Council of the City of Encinitas, State of California.
Catherine S. Blakespear, Mayor
ATTEST:
Kathy Holly ood, C y Clerk
APPROVED AS TO FORM
Leslie E. Devaney, City Att y
CERTIFICATION: I, Kathy Hollywood, City Clerk of the City of Encinitas, California, do hereby certify
under penalty of perjury that the foregoing Resolution was duly adopted at a regular meeting of the
City Council on the 16th day of December, 2020 by the following vote:
AYES: Blakespear, Hinze, Kranz, Mosca
NOES: None
ABSENT: Hubbard
ABSTAIN: None
Kathy Hollywood, City Clerk
I