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Ordinance 1995-18ORDINANCE NO. 95 -18 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GILROY AMENDING SECTION 46 OF THE GILROY ZONING ORDINANCE TO ALLOW RESIDENTIAL DENSITY BONUSES WHEREAS, the State of California has passed a Density Bonus law, Government Code section 65915, which requires cities and counties to provide a residential density bonus of at least 25 %, and, unless otherwise exempted, at least one of the concessions or incentives identified in subdivision (h) of that statute, or incentives of equal financial value, to developers who comply with that statute by providing housing for qualifying residents or for lower or very low income households; and WHEREAS, this action is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15305, Class 5, Minor Alterations in Land use Limitations; and WHEREAS, the proposed amendment is found to be consistent with the City's General Plan because it is consistent with the intent of the text, goals, and policies of the General Plan. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GILROY DOES HEREBY ORDAIN AS FOLLOWS: SECTION I Gilroy Zoning Ordinance Section 46, Exceptions, shall be amended by the addition of Sections 46.40, 46.41, 46.42, 46.43, 46.44, 46.45, 46.46, 46.47 and 46.48. The text of each section shall be as follows: Section 46.40 - Density Exceptions All residential developments shall comply with the density restrictions of the underlying zoning district in which they are located. However, the City shall grant a residential density bonus of 25 percent over the otherwise maximum allowable residential \353 \202598.2 514- 112204706002 -1- ORDINANCE NO. 95 -18 density for the applicable zoning district, with a possible additional incentive, to developers who agree to provide the following: I. At least 20 percent of the units must be affordable to lower income households, as defined by California Health and Safety Code Section 50079.5; or II. At least 10 percent of the units must be affordable to very low income households, as defined by California Health and Safety Code Section 50105; or III. Housing developments in which at least 50 percent of the units are reserved for qualifying residents, as defined in California Civil Code Section 51.2 et seq. To qualify for a density bonus, residential projects must consist of a minimum of five dwelling units, exclusive of any density bonus units. A developer who agrees to construct housing in more than one of the categories listed above shall be entitled to only one 25 percent density bonus. Section 46.41 - Application and Processing Projects requesting a density bonus must be located within a Planned Unit Development (PUD) combining district. All requests for a density bonus shall be reviewed through the City's Planned Unit Development approval process (Section 50.50). Within ninety days after receipt of a preliminary written proposal for the development of housing pursuant to this Section 46, the City shall notify the developer, in writing, of the procedures required for compliance with this section. It is contemplated that such preliminary proposal may be submitted prior to the submittal of any formal requests for General Plan amendments, zoning amendments or subdivision map approvals. Section 46.42 - Duration of Program All units shall remain affordable to their specified income \353 \202598.2 514- 112204706002 -2- ORDINANCE NO. 95 -18 0 0 groups, or remain exclusively for use by qualifying residents, as defined in Section 46.40, for the following periods of time: (a) Ten (10) years if a density bonus is given with no other incentives. (b) Thirty (30) years if a density bonus and an additional incentive is given. Units shall be restricted for a longer period of time if required by a construction or mortgage financing assistance program, mortgage insurance program or rental subsidy program. Section 46.43 - Rental and Sales Prices Rental and sales prices shall comply with the requirements of California Government Code Section 65915. Section 46.44 - Compliance with the Residential Development Ordinance All projects receiving a density bonus must comply with the requirements of the Residential Development Ordinance ( "RDO ") (Section 50.60), except where such project is exempt under the terms of the RDO. Section 46.45 - Additional Incentives In addition to the density bonus, at least one other in- centive identified in California Government Code § 65915(h) shall be provided to developers proposing housing developments meeting the requirements of Section 46.40, unless the City finds that the additional concession or incentive is not required in order to provide for housing at affordable housing costs as defined in California Health and Safety Code Section 50052.5 or for rents for the affordable units as calculated in California Government Code Section 65915(c). Provision of an additional concession or incentive will cause the affordable and /or qualifying resident units to be restricted for thirty years, rather than ten years, as described in Section 46.42 above. Concessions and incentives are \353 \202598.2 514 - 112204706002 -3- ORDINANCE NO. 95 -18 subject to City Council review and approval. Section 46.46 - Number of Units The required number of affordable or qualifying resident units and the permitted number of density bonus units shall be calcu- lated as follows: (a) The density bonus units shall not be included when determining the total number of required lower income or very low income units or qualifying resident units. (b) when calculating the number of required restricted units and the number of permitted density bonus units, any resulting fraction of a unit shall be rounded up to count as a whole unit. (c) In cases where density increases of less than 25 percent are requested, no reduction in the number of required affordable or qualifying resident units will be permitted. Section 46.47 - Density Bonus Agreement Applicants qualifying for a density bonus shall enter into an agreement with the City, on terms acceptable to the City, to ensure ongoing compliance with the provisions of this Section, prior to the issuance of building permits. Appropriate rent and resale controls shall be incorporated into the grant deeds or, at the City's sole option into other enforceable restrictive mechanisms, for the residential development regulated by this Section 46.40 et seq.. All such controls shall run with the land for the duration of the program pursuant to Section 46.42. If the restriction is by recordable instrument, proof of such recordation shall be deemed • condition precedent to occupancy of any residential unit within • development regulated hereunder. \353 \202598.2 514- 112204706002 -4- ORDINANCE NO. 95 -18 rI L Section 46.48 - Severability 0 If any section, subsection, subdivision, sentence, clause, phrase, or word of this Chapter 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 ordi- nance. The City Council hereby declares that it would have adopted this ordinance and each and every provision herein, irrespective of the possibility that one or more provisions might be declared invalid. This ordinance shall take effect and be in full force thirty days from and after its adoption and approval. PASSED AND ADOPTED this 20th day of November, 1995 by the following vote: AYES: COUNCILMEMBERS: GILROY, MORALES, ROGERS, ROWLINSON, VALDEZ and GAGE. NOES: COUNCILMEMBERS: None f :b9�lk1 0 F 0101gk1 COO 0d1AU.)21 ' f[0)2[9:4�l�a APPRO RUMM ATTEST: Susanne E. Steinmetz, City Cle \353 \202598.2 514 - 112204706002 -5- ORDINANCE NO. 95 -18 I, SUSANNE E. STEINMETZ, City Clerk of the City of Gilroy, do hereby certify that the attached Ordinance No. 95 -18 is an original ordinance, duly adopted by the Council of the City of Gilroy at a regular "meeting of said Council held on the 20th day of November 19 95, at which meeting a quorum was present. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of the City of Gilroy this 7th day of December 19 95 1 City Clerk of the City of Gilroy - ;Seatj