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

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DBA No. 2023-01— 41" and Grand (1212 E. Fourth Street) August 28, 2023 Page 3 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 have an eight -percent affordability rate. As such, State density bonus law allows the developer to request a maximum density bonus of 27.5 percent. Due to the project's eight -percent affordability rate, the developer can seek one density bonus concession and unlimited waivers, pursuant to Section 65915 et al. of the California Government Code (Density Bonuses and Other Incentives). In addition, California Assembly Bill No. 2345, approved September 28, 2020, revised the State Density Bonus Law originally adopted in 1979 to provide additional benefits for projects that include qualifying affordable housing. Pursuant to Section 65915 et al. of the California Government Code, the developer is requesting a 27.5-percent density bonus. As such, the maximum unit yield for the 0.287- acre site using the most "intense" building type allowed in CDR and the State density bonus is 16 units, as outlined in Table 2. However, the applicant is proposing to develop fifteen units on the site. 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 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. The purpose of the State's Density Bonus Law is to encourage the development and availability of affordable housing by requiring the inclusion of affordable housing units within new developments. Pursuant to California Government Code sections 65915 (d)(1) and 65915 (e)(1), a local jurisdiction is limited in its ability to deny requested concessions and waivers and is preempted from denying the Density Bonus Agreement application. Although the City has analyzed the project and has identified several areas of concern, the conditions of approval proposed for the project are intended to address any of the project's potential impacts. Table 3 outlines the incentives/concessions and waivers requested by the applicant.