Item 31 - Density Bonus Agreement No. 2023-02: Residential Development (322 N Harbor Blvd.)

Home Browse Search

Density Bonus Agreement No. 2023-02: Residential Development (322 N Harbor Blvd.) November 21, 2023 Page 3 income (AMI), which is currently set at $71,750, adjusted for a four -person household size, as published by California Department of Housing and Community Development (HCD). The project features a contemporary architectural style similar to many multiple -family or mixed -use residential communities under construction in the region and is complementary to the emerging architectural style in the Specific Plan area. The overall design, massing, features, and materials of the new construction will be compatible with, but differentiated from, the existing neighborhood. The contemporary architectural style would include synthetic exterior board siding, stucco finishes, vinyl frame windows, metal railings for proposed decks, wood framed awnings, split -face CMU walls, and high - quality architectural detailing. 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 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., 50 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 0.34-acre site at 50 du/ac is 17 units. Out of the total units in the development, two units are proposed to be affordable to very low income. Therefore, the project would provide eleven -percent (11 %) 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 35%. This would allow a project with a total of 23 units, but the applicant is proposing to develop 22 units on the site. Due to the project's 11 % affordability rate, under Government Code Section 65915, the developer can seek two density bonus concessions and unlimited waivers.