Item 23 - Density Bonus Agreement No. 2023-01: 4th and Grand (1212 E. Fourth Street)

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Density Bonus Agreement for 1212 E. Fourth Street October 17, 2023 Page 4 along the east and west elevations. Moreover, the structure is designed to fully screen all mechanical equipment within the structure and parapet walls. Overall, the project will include a design and solid construction materials that will ensure that the project ages well for the duration of the building's lifetime. Density Bonus Agreement The California Density Bonus (Government Code § 65915 et seq.) law allows developers proposing five or more residential units to seek increases in base density for providing on - site housing units in exchange for providing affordable units on site. To help incentivize constructing on -site affordable units, the law allows developers to seek a density bonus that allows a project to exceed local density restrictions, as specified by state law, and up to three incentives/concessions and an unlimited number of waivers that facilitate production of units, which are essentially variances from development standards that would help the project be built without significant burden and without detriment to public health. The first version of the Density Bonus Law was adopted in 1979 and has since been amended at various times. In early 2017, the law was amended to restrict the ability of local jurisdictions to require studies to "justify" the density bonus and requested incentives/waivers and places the onus on local jurisdictions to prove that the incentives/concessions or waivers are not financially warranted. Pursuant to the California Density Bonus law, a project's affordability level is determined by dividing the number of proposed affordable units by the allowable "base" density (i.e., 40 du/ac). Moreover, the State density bonus law states that units added by a density bonus are excluded from the calculations. As outlined by Table 2 below, the base density for the 0.287-acre site at 40 du/ac is 12 units. Of the total units in the development, one units is proposed to be affordable. Therefore, the project would provide eight percent (8%) of the base units for very low income households. As such, State density bonus law allows the developer to request a maximum density bonus of 27.5 percent. This would allow a project with a total of 16 units, but the applicant is proposing to develop only fifteen units on the site. Due to the project's eight -percent affordability rate, under Government Code section 65915, the developer can seek one density bonus concession and unlimited waivers. Table 2: Density Bonus Calculation Affordable Unit — 8% 1 unit)* Density Bonus Calculation Units Allowed Base Density - Flex Block Housing type (most 0.287 acres x 40 du/ac 12 Units** "intense" t e allowed in CDR 27.5-Percent State Density Bonus 12 units x 0.275 +4 Units** Total Potential Units 16 Units Proposed Units 15 Units *Affordable unit percentage is calculated excluding units added by a density bonus. **AB 2501 states that any density calculations resulting units shall be rounded up to the next whole number. Applies to: Number of affordable units required to be eligible for the density bonus; Base density i.e. the number of affordable units in the base project); and Eligible bonus units.