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DBA 2010-03 and SPR 2010-02 December 13, 2010 Page 4 creates an economic advantage to the developer, which could then be used to subsidize any gap between market rents or sales prices and the price at which the unit would be affordable to those making less than the area median income. Under this law, California cities, including charter cities, were required to adopt implementing legislation, which Santa Ana did in 2001 with the adoption of SAMC Article XVI.I - Density Bonus for Affordable Housing. Under this article, developers wishing to construct projects that meet the requirement for a specified percentage of affordable housing units may request to enter into a Density Bonus Agreement with the City and, pending approval of such an agreement, may also request deviations from the City's existing density caps and development standards that would be necessary to facilitate the development of the project. Under the State Density Bonus Law cities must grant the request of the applicant, unless it adopts written findings, based upon substantial evidence, that the request is not necessary in order to provide affordable housing, or that there would be a specific adverse impact upon public health and safety, or the physical environment, or on specified historic properties, and for which there is no feasible way of mitigating or avoiding the impact without rendering the project unaffordable to low and moderate income households. The City further supported the provisions of the State Density Bonus Law through the adoption of policies contained within the 2006-2014 Housing Element. In particular, Housing Program No. 25 of the Housing Implementation Summary states that the City will implement the density bonus ordinance to assist in the development of extremely low, very low, and low income rental units, and moderate income condos, and senior housing. Density Bonus Implementation of the Proposed Project Pursuant to SAMC 14-1600 et seq., developers wishing to pursue deviations from the City's established densities and development standards must enter into a Density Bonus Agreement with the City. The code also states that, if the proposed Density Bonus Agreement includes requests for deviations from zoning and development standards, that those deviations must first be approved by the Planning Commission prior to consideration of the Agreement by the City Council. The project applicant is requesting deviations from the City's zoning and development standards, as further detailed in this staff report. The Density Bonus Agreement (Exhibit 8) details the requested deviations. This Agreement, along with the Planning Commission's recommendation regarding the requested deviations, will be considered by the City Council. The Developer is seeking a density bonus from the maximum density permitted, and deviations from the minimum lot size, the minimum average front yard setback, and the average side yard setback. 39B-6