Ordinance No. 8700,)J
ORDINANCE NO. 870
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF CYPRESS AMENDING APPENDIX I,
"ZONING," OF THE CODE OF THE CITY OF
CYPRESS BY THE ADDITION OF SECTION 9.8,
"RESIDENTIAL DENSITY BONUS STANDARDS AND
REGULATIONS," FOR RENTAL PROJECTS
THE CITY COUNCIL OF THE CITY OF CYPRESS DOES ORDAIN
AS FOLLOWS:
SECTION I. Section 9.8, "Residential Density Bonus
Standards and Regulations," is hereby added to Appendix I,
"Zoning," of the Code of the City of Cypress to read as
follows:
"SECTION 9.8
RESIDENTIAL DENSITY BONUS STANDARDS AND REGULATIONS
Sections:
9.8 -1 Definitions.
9.8 -2 Rental Projects.
9.8 -3 RESERVED.
9.8 -4 RESERVED.
9.8 -5 Preapplication Determination.
9.8 -6 Additional Density Bonus.
Sec. 9.8 -1 Definitions. For purposes of this
Section, the following words and phrases shall have the
meaning set forth below:
(a) 'Additional Incentive' shall mean subsidized
development fees, mixed -use zoning
(combination of housing with commercial,
office, industrial, or other land uses which
will reduce the cost of the housing
development), waiver of certain development
fees, and direct financial participation by
the City.
(b) 'Affordable Units' shall mean those units set
aside as a condition to granting the density
bonus and to be inhabited by individuals and
families of low, lower, and /or very low
income.
(c) 'Affordable Payments' shall mean monthly
payments for an owner- occupied unit which do
not exceed thirty percent, (30%) of the low,
lower, and /or very low income individual's or
family's monthly income and is inclusive of
principal and interest on any mortgage, taxes,
insurance, and association dues.
-1-
056
(d) 'Affordable Rent' shall mean:
(1) For those units targeted for
individuals and families of lower income a
monthly rental rate which does not exceed
thirty percent (30%) of sixty percent (60 %) of
area median income;
(2) For those units targeted for
individuals and families of very low income a
monthly rental rate which does not exceed
thirty percent (30%) of fifty percent (50%) of
area median income.
(e) 'Applicant' shall mean the owner or developer
of real property who proposes to construct a
Qualified Project providing housing for low,
lower, and /or very low income individuals and
families.
(f) 'Area Median Income' shall mean those income
levels adopted in conformance with the United
States Housing Act of 1937, 42 USC Section
1437 et seq. and adopted by the State of
California, Department of Housing and
Community Development in Title 25 California
Code of Regulations ( "CCR "), Section 6932,
which implements California Health and Safety
Code Section 50093.
(g) 'City' for purposes of this Section, shall
mean the City of Cypress, the Cypress
Redevelopment Agency, a housing authority
formed by the City, or any agent, agency, or
instrumentality of the City so designated by
Resolution of the City Council.
(h) 'Concessions' shall mean increases in lot
coverage, decreases in minimum lot size
permitted for development, reduction in
sideyard set backs, reduction in rearyard set
backs, coordination of placement and
responsibilities for public works
improvements, reduction in local building
standards to those minimums approved by the
State, reduction in the number of required
off - street parking spaces, or the waiver of
certain fee or dedication requirements.
(i)
'Density Bonus' shall mean an increase above
the otherwise applicable maximum density for
the General Plan Land Use Designation and
zoning for the site of the proposed
development. Density Bonus shall be a twenty -
five percent (25 %) increase above the
otherwise allowable density. The Density
Bonus shall not be included when determining
the number of units which is equal to ten
percent (10 %) or twenty -five percent (25 %) of
the total units.
-2--
057
(j)
'Elderly Individuals' shall mean those
individuals and families who qualify as such
pursuant to Health and Safety Code Section
50067.
(k) 'Low Income Individuals' shall mean those
individuals and families with incomes at or
below the range established pursuant to Health
and Safety Code Section 50079.5 and delineated
at 25 CCR 6932; and also includes elderly
individuals and families as defined in Health
and Safety Code Section 50067.
(1) RESERVED
(m)
'Qualified Project' shall mean either an
Owner - Occupied Project or a Rental Project for
a housing development consisting of five (5)
or more units for which the Applicant agrees
to construct twenty percent (20a) or more of
the units for occupancy by lower income
individuals and families or ten percent (10%)
of the total units for individuals and
families of very low income.
(n) 'Rental Projects' shall mean those Density
Bonus projects designed to serve individuals
and families of low, lower, and /or very low
income on a rental basis which such rent
payments do not exceed one -third (1/3) of the
individual's or family's qualified monthly
income.
(o) 'Section 8' shall mean Section 8 of the United
States Housing Act of 1937, as amended, now
codified at 42 U.S.C. Section 1437 et seq.
(p) 'Very Low Income Individuals' shall mean those
individuals and families with incomes at or
below the range established pursuant to Health
and Safety Code Section 50105 and delineated
at 25 CCR 6932.
Sec. 9.8 -2 Rental Projects. Whenever an Applicant
agrees to construct a Rental Project with twenty percent
(20%) or more of the units set aside for occupancy by lower
income individuals and families; or ten percent (100) or
more of the units set aside for occupancy by very low income
individuals and families; or fifty percent (50%) or more of
the units set aside for qualifying residents as defined in
Civil Code Section 51.2, the Applicant may request a Density
Bonus as defined herein. This request for a Density Bonus
shall be granted, subject to the following standards and
limitations:
(a) The proposed project qualifies under the
applicable definitions set forth in Section 9.8 -1 above.
(b) The Applicant is eligible for both a Density
Bonus and at least one additional incentive or concession.
(c) The additional incentive or concession shall
be from the list set forth in Sections 9.8 -1(a) and /or 9.8-
1(h) above.
(d) The Applicant shall enter into and execute a
written Density Bonus Agreement with the City prior to the
issuance of any building permits. This Density Bonus
Agreement shall set forth specifically the terms of the
Density Bonus, and identify any additional incentive or
concession provided.
(e) The units set aside for lower income
individuals and families, (the "Affordable Units "), shall be
affordable for such individuals and families at affordable
rents as defined in Section 9.8 -1(d) for a period of at
least thirty (30) years. However, if the City in approving
the project does not grant at least one incentive or
concession pursuant to Section 9.8 -2(b) above, the City and
the Applicant may agree to limit the affordability period to
ten (10) years.
(f) After evaluating any additional incentive or
concession which could result in the Rental Project being
produced at the reduced cost, the City Council may make a
written finding that the additional incentive or concession
is not required in order for rents for the Affordable Units
to qualify as affordable pursuant to Section 9.8 -1(d) above.
(g) Any units constructed as a Rental Project to
serve individuals and families of low, lower, and /or very
low income which Rental Project receives direct financial
assistance from the federal or state government or from the
City Redevelopment Agency, or housing authority, including
local construction or mortgage financing assistance,
mortgage insurance, rent subsidies, reduced cost realty, or
similar financial participations shall be reserved for a
period of thirty (30) years, or a longer period of time if
required by the construction or mortgage financing
assistance program, rnortgage insurance program, or rental
subsidy program. Units financed under Section 1472 and
1490(a) of Title 42 of the United States Code shall be
subject to the applicable restrictions of that Title. The
Applicant shall insure, and the City shall review for
compliance, that the units designated for lower income
individuals and families contain a bedroom mix
representative of the entire development and contain
comparable quality amenities representative of the entire
project. In no instance shall the Applicant be entitled to
downgrade the Affordable Units or to make them of lesser
quality or in any way prejudice or stigmatize the unit
and /or the residents therein.
(h) The recorded covenants for the Rental Project
shall provide for liquidated damages to be paid to the City,
or any housing authority acting on the City's behalf, in the
event of a breach of the terms of the Agreement required
under this Section. The liquidated damages shall be set
-4-
o 'J
forth in the Agreement, determined in advance by the City,
and relate directly to the anticipated costs of providing
replacement Affordable Units for the balance of the term of
the Agreement required pursuant to this Section.
(i) The Applicant may participate in the County of
Orange Single Family Revenue Bond Program and shall conform
to the criteria established by the Bond Program requiring
affordability for lower income or very low income
individuals and families. However, the Applicant shall also
be required to meet the standards, requirements, conditions,
and terms of the Density Bonus Program and this Section
established by the City. In the event of conflict between
the terms and conditions of the County program and this
Section, such conflict shall be resolved in the Agreement
between the City and the Applicant. Such Agreement shall
govern the conflicts therein.
Sec. 9.8 -3 RESERVED.
Sec. 9.8 -4 RESERVED.
Sec. 9.8 -5 Preapplication Determination. An
Applicant shall presubmit an application for a proposed
Density Bonus project prior to any formal requests for
General Plan Amendments, Zoning Amendments, or Subdivision
Map approvals. The Planning Department shall, within ninety
(90) days after the receipt of this written proposal, notify
the Applicant in writing of the procedures under which it
shall comply with the provisions of this Section and
Government Code Section 65915 et seq. Included within that
determination, which shall be approved by the City Council,
shall be the method of compliance to be utilized for this
project, including the incentive and /or concession set forth
in Sections 9.8 -1(a) and 9.8 -1(h) above. If the Applicant
believes that a waiver or modification of applicable
development and zoning standards is necessary to make the
project economically feasible, the Applicant shall bear the
burden of showing that such waiver or modification is
necessary.
Sec. 9.8 -6 Additional Density Bonus. If the
Applicant desires to construct a Qualified Project which
would consist of both twenty percent (20%) of the total
units serving lower income individuals and families, and ten
percent (10 %) of the units for very low income individuals
and families, the Applicant is entitled to only one Density
Bonus and at least one additional incentive or concession
identified above. However, the City Council may in its
discretion grant more than one Density Bonus for the
project."
SECTION II. Section 9.2B.1 of Appendix I,
"Zoning," of the Code of the City of Cypress is hereby
amended to delete the existing reference to Section 65915 of
the State Planning Act and replace such reference with the
following:
"* A Density Bonus of at least twenty -five
percent (25 %) may be granted in accordance with Section 9.8
of this Zoning Appendix and applicable State law."
-5-
0P0
SECTION III. If any section, subsection,
subdivision, sentence, clause, phrase, or portion of this
Ordinance, is for any reason held to be invalid or
unconstitutional by the decision of any 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 adopted this Ordinance,
and each section, subsection, subdivision, sentence, clause,
phrase, or portion thereof, irrespective of the fact that
any one or more sections, subsections, subdivisions,
sentences, clauses, phrases or portions thereof be declared
invalid or unconstitutional.
SECTION IV. The City Clerk is hereby authorized
and directed to certify as to the passage of this Ordinance
and to give notice thereof by causing copies of this
Ordinance to be posted in three public places throughout the
City.
FIRST READ at a regular meeting of the City Council
of said City held on the 24th day of June ,
1991 and finally adopted and order posted at a regular
meeting held on the 8th day of July ,
1991.
ATTEST:
MAYOR OF TH CITY OF CYPRESS
CITY CL RK 'iF� 'E ' TY OF CYPRESS
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
I, DARRELL ESSEX, City Clerk of the City of
Cypress, California DO HEREBY CERTIFY that the foregoing
Ordinance was duly adopted at a regular meeting of the City
Council of the City of Cypress, held on the 8th day
of July , 1991, by the following roll call vote:
AYES: 5 COUNCIL MEMBERS: Age, Kerry, Nicholson, Partin
and Bowman
NOES: 0 COUNCIL MEMBERS: None
ABSTAINED: 0 COUNCIL MEMBERS: None
ABSENT: 0 COUNCIL MEMBERS: None
CI`Ci�
O E /'C:ITY OF CYPRESS
-6-