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Ordinance No. 1115OZG ORDINANCE NO. 1115 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CYPRESS, CALIFORNIA, AMENDING THE CYPRESS MUNICIPAL CODE, APPENDIX I — ZONING, SECTIONS 3.12.020 THROUGH 3.12.070 RELATING TO DENSITY BONUS PROVISIONS TO BE CONSISTENT WITH CURRENT STATE REQUIREMENTS. WHEREAS, the Cypress Zoning Ordinance (2004) currently authorizes the construction of "density bonus units" under the requirements of the California Government Code as it was then written; and WHEREAS, the California Legislature amended Government Code Sections 65915 - 65918, through SB1818 (2004) and AB2280 (2008), which enacted significant changes to the State's density bonus law, thereby rendering previous ordinances written in compliance with the former California Government Code language out of date; and WHEREAS, the new legislation requires cities and counties to revise their density bonus ordinances to bring them into conformance with state mandates; and WHEREAS, the City Council of the City of Cypress desires to amend the Municipal Code, Appendix I, Zoning to ensure that such Code is consistent with State Law, as amended; and WHEREAS, Housing Program 16 of the 2008 -2014 Housing Element of the Cypress General Plan stipulates that the density bonus provisions of the Cypress Zoning Ordinance will be amended to reflect current State requirements; and WHEREAS, the City Council determines that adoption of this Ordinance is consistent with the goals, policies, and objectives of the 2001 Cypress General Plan, as amended, as well as the 2008 Housing Element Update; and WHEREAS, in accordance with Section 15061(b)(3) of the California Environmental Quality Act (CEQA) guidelines, this action is exempt from CEQA provisions. Development projects subject to the amended provisions would be individually analyzed for CEQA compliance on a project by project basis; and WHEREAS, the City Council hereby finds that the proposed Zoning Ordinance Amendment No. 2009 -04 would not adversely affect the public health, safety or general welfare; and WHEREAS, a duly noticed public hearing for consideration of this Zoning Ordinance Amendment was held by the City Council of the City of Cypress on the 14th day of December, 2009; and WHEREAS, the City Council of the City of Cypress considered evidence presented at the public hearing including a staff report and public testimony; and WHEREAS, following the public hearing and City Council discussion, a motion was made to approve Zoning Ordinance Amendment No. 2009 -04 as proposed and stipulated herein. NOW, THEREFORE, the City Council of the City of Cypress toes HEREBY ORDAIN as follows (new text shown in bold, and deleted text shown in stFikeeu+t): Section 1: The Cypress Zoning Ordinance Section 12. Density Bonus, Subsection 3.12.010, Purpose, is hereby amended by the addition of a new subsection, C, State Density Bonus Law, to read, in its entirety, as follows: "C. State Law. The provisions of California Government Code Sections 65915 -65918 pertaining to density bonuses and other incentives are hereby adopted, as amended from time to time, as part of this subsection. " 027 Section 2: The Cypress Zoning Ordinance Section 12. Density Bonus, Subsection 3.12.020, Definitions, is hereby amended to add the definition for Child Care Facility, in its entirety, as follows: "Child Care Facility. A child 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;" Section 3: The Cypress Zoning Ordinance Section 12. Density Bonus, Subsection 3.12.020, Definitions is hereby amended to add the definition for Density to read, in its entirety, as follows: "Density. The number of housing units net per acre, unless otherwise stated, for residential uses;" Section 4: The Cypress Zoning Ordinance Section 12. Density Bonus, Subsection 3.12.020, Definitions is hereby amended to modify the definition for Density Bonus to read, in its entirety, as follows: "Density Bonus. AR A density increase above over the otherwise applicable maximum allowable density for the general plan land use designation and zoning for the site of the proposed development as of the date of application by the applicant to the City. . The amount of density bonus to which the applicant is entitled shall vary according to the amount by which the percentage of affordable housing units meet or exceed the percentages established in California Government Code Section 65915;" Section 5: The Cypress Zoning Ordinance Section 12. Density Bonus, Subsection 3.12.020, Definitions is hereby amended to add the definition for Development Standard to read, in its entirety, as follows: "Development Standard. A site or construction condition including, but not limited to, a height limitation, a setback requirement, a floor area ratio, an on- site open space requirement, or a parking ratio that applies to a residential development pursuant to any ordinance, general plan element, specific plan, charter, or other local condition, law, policy, resolution, or regulation;" Section 6: The Cypress Zoning Ordinance Section 12. Density Bonus, Subsection 3.12.020, Definitions is hereby amended to add the definition for Maximum Allowable Residential Density to read, in its entirety, as follows: "Maximum Allowable Residential Density. The density allowed under the zoning ordinance and land use element of the general plan;" Section 7: The Cypress Zoning Ordinance Section 12. Density Bonus, Subsection 3.12.040.A, Incentives and Concessions is hereby amended to read, in -part, as follows: "A. Incentives and Concessions. In addition to granting the density bonus for a qualifying project in compliance with this section, the city shall grant at least one (1) to three (3) incentive(s) or concession(s) for each project, depending on the percentages of affordable units that the developer provides as set forth in Government Code Section 65915, subsection (d), as follows:" Section 8: The Cypress Zoning Ordinance Section 12. Density Bonus, Subsection 3.12.040.B, Additional Density Bonus is hereby amended to read, in its entirety, as follows: "B. Additional density bonus. and at loact ono additional incontivo - 2 - 028 discretion grant more than ono doncity bonus for tho projoct. An applicant shall be eligible for an increased density bonus for a housing development that includes a donation of land and /or a child care facility, subject to the conditions and provisions set forth in Government Code Section 65915, subsections (g)and (h), respectively." Section 9: The Cypress Zoning Ordinance Section 12. Density Bonus, Subsection 3.12.040, City Incentives to Encourage Participation is hereby amended by adding subparagraph C to read, in its entirety, as follows: "C. Vehicle Parking Ratio. In accordance with Government Code Section 65915, subsection (p), the following minimum vehicle parking ratios shall be applied to qualifying density bonus projects. Upon the request of the developer, the City shall allow the following vehicle parking ratios, inclusive of handicapped and guest parking, of a development meeting the criteria for a density bonus as set forth in this ordinance: 1. Zero (0) to one (1) bedroom: one (1) onsite parking space. 2. Two (2) to three (3) bedrooms: two (2) onsite parking stalls. 3. Four (4) or more bedrooms: two and one half (21/2) parking spaces. 4. A density bonus development may provide onsite parking through tandem parking or uncovered parking, but not through onstreet parking. 5. An applicant may request parking incentives or concessions beyond those provided in this subsection." Section 10: The Cypress Zoning Ordinance Section 12. Density Bonus, Subsection 3.12.050.A, Number of Affordable Units is hereby amended to read, in its entirety, as follows: "A. Number of affordable units. An applicant may request a density bonus whenever an applicant agrees to construct a rental project with that will contain one (1) of the following: 1. Twenty (20) Ten (10) per cent or more of the units set aside for occupancy by lower income individuals and families; or 2. Ten (10) Five (5) per cent or more of the units set aside for occupancy by very low income individuals and families; or 3. A senior citizen housing development as defined in Civil Code suction 51.2 Sections 51.3 and 51.12, or mobilehome park that limits residency based on age requirements for housing for older persons pursuant to Section 798.76 or 799.5 of the Civil Code." Section 11: The Cypress Zoning Ordinance Section 12. Density Bonus, Subsection 3.12.050.B.5, Time Periods for Affordability Restrictions is hereby amended to read, in its entirety, as follows: "5. Time periods for affordability restrictions. Units set aside for lower income individuals and families (the affordable units) shall be affordable at affordable rents as defined in subsection 3.12.020 (Definitions -- Affordable rent) for a period of at least thirty (30) years. However, if the city, in i.n complianco with subsoction 3.12.040 (City - 3 - 029 Section 12: The Cypress Zoning Ordinance Section 12. Density Bonus, Subsection 3.12.060.A, Number of Affordable Units is hereby amended to read, in its entirety, as follows: "A. Number of affordable units. An applicant may request a density bonus whenever an applicant agrees to construct a rental project with that will contain one (1) of the following: 1. Twenty (20} Ten (10) per cent or more of the units set aside for occupancy by lower income individuals and families; or 2. Ten (10) Five (5) per cent or more of the units set aside for occupancy by very low income individuals and families; or 3. - -- - -- =- A senior citizen housing development as defined in Civil Code sestien 51.2 Sections 51.3 and 51.12, or mobilehome park that limits residency based on age requirements for housing for older persons pursuant to Section 798.76 or 799.5 of the Civil Code. 4. Ten (10) percent of the total dwelling units in a common interest development as defined in Section 1351 of the Civil Code for persons and families of moderate income, as defined in Section 50093 of the Health and Safety Code, provided that all units in the development are offered to the public for purchase." Section 13: The Cypress Zoning Ordinance Section 12. Density Bonus, Subsection 3.12.060.B.5, Time Periods for Affordability Restrictions is hereby amended to read, in its entirety, as follows: "5. Time periods for affordability restrictions. Units set aside for lower income individuals and families (the affordable units) shall be affordable at affordable rents as defined in subsection 3.12.020 (Definitions -- Affordable rent) for a period of at least thirty (30) years. Howevor, if the city, in participation) above, the city and tho applicant may agroo to limit tho Section 14: The Cypress Zoning Ordinance Section 12. Density Bonus, Subsection 3.12.060.D, Resale of Affordable Units — Ten Year Period is hereby amended to read, in its entirety, as follows: "D. Resale of Affordable Units — Ten -Year Period. Refer to the resale requirements for thirty -year period, as described in the following subsection E. purchaser and the City during tho ton yoar poriod. In addition to tho subjoct to the same restrictions as in subparagraph C.1. above. Upon and shall charo in tho procoods of tho Salo to tho dogroo that tho city& contribution represented to the purchase price by the homoownor. In to the -hems. . Lien for performance of affordability requirements. The reserved of the period during which tho affordable unit(s) is /are to remain affordablo. " Section 15: The Cypress Zoning Ordinance Section 12. Density Bonus, Subsection 3.12.060.E, Resale of Affordable Units is hereby amended to read, in its entirety, as follows: "E. Resale of Affordable Units — Thirty -Year Period. The City shall enforce an equity- sharing agreement, unless it is in conflict with the requirements of another public funding source or law. The following shall apply to the equity- sharing agreement: 1. Division of sale procoods roquirod whon rosalo occurc boforo resale: The City's initial subsidy shall be equal 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 downpayment 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. rosale of an affordable unit during the thirty yoar poriod shall bo used 5 Upon resale, the seller 031 of the unit shall retain the value of any improvements, the downpayment, and the seller's proportionate share of appreciation. The City shall recapture any initial subsidy, as defined in subparagraph 2 herein, and its proportionate share of appreciation, as defined in subparagraph 3 herein, which amount shall be used within five (5) years for any of the purposes described in subdivision (e) of Section 33334.2 of the Health and Safety Code that promote home ownership. reserved retainod proceeds obtainod by tho city in compliance with subject to the same rostrictions as in subparagraph D.1. above. Upon and shall sharo in tho procoods of tho salo to tho dogroo that tho city's contribution represented to the purchaso price by tho homoowner. In The City's proportionate share of appreciation shall be equal to the ratio of the City's initial subsidy to the fair market value of the home at the time of initial sale. 4. Lien for performance of affordability requirements. The reserved retained proceeds shall constitute the City's security for performance of the affordability requirements and shall be in the nature of a lien on the affordable unit(s). The lien shall be released by the payment to the city by the property owner of the reserved retained proceeds or by the termination of the period during which the affordable unit(s) is /are to remain affordable. " Section 16: The Cypress Zoning Ordinance Section 12. Density Bonus, Subsection 3.12.060.F, Right of Planning Agency to Disapprove additional incentive or concession is hereby amended to read, in its entirety, as follows: "F. Right of planning agency to disapprove additional incentive or concession. t boing producod at tho roducod cost, tho rent) above. In accordance with the provisions set forth in Government Code Section 65915, subsections (d) and (e), the City shall not be required to grant an incentive or concession that would have a specific adverse impact, as defined in paragraph (2) of subdivision (d) of Section 65589.5 of the Government Code, upon health, safety, or the physical environment, and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact." Section 17: Severability. The City Council declares that, should any provision, section, paragraph, sentence, or word of this Ordinance be rendered or declared invalid by any final court action in a court of competent jurisdiction, or by reason of any preemptive legislation, the remaining provisions, sections, paragraphs, sentences and words of this Ordinance shall remain in full force and effect. Section 18: The City Clerk of the City of Cypress shall certify to the passage and adoption of this Ordinance and the same shall be posted as required by law and shall take effect as provided by law. 6 032 FIRST READ at a regular meeting of the City Council of said City on the 14th day of December, 2009 and finally adopted and order posted a regular meeting held on the 11th day of January, 2010. • 3\30%A.Gtot.A.-- MO MAYOR OF THE CITY OF CYPRESS ATTEST: %Lux CITY CLERK OF THE CITY OF CYPRESS STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS I, DENISE BASHAM, City Clerk of the City of Cypress, DO HEREBY CERTIFY that the foregoing Ordinance was duly adopted at a regular meeting of the said City Council held on the 11th day of January, 2010, by the following roll call vote: AYES: 5 COUNCIL MEMBERS: Luebben, Mills, Seymore, Bailey, and Narain NOES: 0 COUNCIL MEMBERS: None ABSENT: 0 COUNCIL MEMBERS: None 7 62_1'1 CITY CLERK OF THE CITY OF CYPRESS