CC Resolution No. 20-141 Adopting a Housing Program to Incentivize the Development of Affordable Housing by Allowing for Density Bonuses up to 40 Percent and Initiating a Zoning Code Amendment to Include the Program in the City's Density Bonus OrdinanceRESOLUTION NO. 20-141
A RESOLUTION OF THE CUPERTINO CITY COUNCIL ADOPTING A
HOUSING PROGRAM TO INCENTIVIZE THE DEVELOPMENT OF
AFFORDABLE HOUSING BY ALLOWING FOR DENSITY BONUSES UP TO 40
PERCENT AND INITIATING A ZONING CODE AMENDMENT TO INCLUDE
THE PROGRAM IN THE CITY'S DENSITY BONUS ORDINANCE
WHEREAS, Cupertino Municipal Code Chapter 19.56 implements the
requirements of Government Code Section 65915 (state density bonus law) to incentivize
the construction of affordable units through the provision of density bonuses and other
benefits; and
WHEREAS, the City Council initiated a Work Program item to incentivize
affordable housing development within the City with its FY 2020/2021 City Work
Program, which includes amendments to the Density Bonus Ordinance; and
WHEREAS, the California Legislature has adopted AB 2345 (Chapter 197, Statutes
of 2020), increasing the allowable density bonus from 35 percent to 50 percent in
exchange for a minimal four percent increase in the percentage of affordable units in a
development (allowing a 50 percent bonus for 15 percent very low income units, 24
percent lower income units, and 44 percent moderate income units) and decreasing the
required percentage of affordable units in a development to qualify for incentives and
concessions; and
WHEREAS, AB 2345 will become effective on January 1, 2021; and
WHEREAS, the availability of a 50 percent density bonus for only 15 percent
affordable units in a development may discourage the development of affordable
housing under AB 1763 (Chapter 666, Statutes of 2019) which allows an 80 percent
density bonus but requires 100 percent affordable units; and
WHEREAS, developers in Cupertino have effectively used the existing density
bonus incentives, which have been determined to provide a higher rate of return than
the proposed incentives; and
WHEREAS, if prior to January 1, 2021 the City adopts a housing program or
ordinance, or both, that incentivizes the development of affordable housing by allowing
bonuses that exceed 35 percent, the City is exempt from the proposed increase to the
density bonus and the incentives and concession requirements imposed by AB 2345; and
WHEREAS, the City's housing program will incentivize the development of
affordable housing by increasing the maximum density bonus from 35 percent to 40
percent for projects not including 100 percent affordable units; and
WHEREAS, pursuant to Municipal Code Section 19.152.030(A)(1), the City Council
may initiate a zoning code amendment by motion on its own initiative and forward said
change to the Planning Commission for its consideration; and
Resolution No. 20-141
Page 2
WHEREAS, the City's police power provides the City with the authority to adopt
an affordable housing program to further the public health, safety, and welfare; and
WHEREAS, the proposed housing incentive program is exempt from
environmental review pursuant to Section 15061(b)(3) of the California Environmental
Quality Act (CEQA) Guidelines since there would be no possibility of a significant effect
on the environment. The housing incentive program will not allow any increase in
density greater than that allowed by State law as of January 1, 2021. The density bonus
increase to 40 percent contained in the housing incentive program does not increase the
number of units that may be constructed on any property, because under AB 2345,
effective January 1, 2021, the maximum density bonus would be increased to 50 percent
if the City does not adopt its own increased density program; and
WHEREAS, the City Council's initiation of a zoning ordinance amendment is not a
project pursuant to Section 21065 of CEQA because the initiation of the amendment does
not constitute approval of the amendment.
NOW, THEREFORE, BE IT RESOLVED that the City Council hereby:
Section 1. Adopts a housing program increasing the maximum allowed density bonus to
40 percent from 35 percent for the same proportional increases in affordability as the
existing local statute, as follows:
Housing Incentive Program
Target Group Proportion of Total Affordable
Dwelling Units
Maximum Density
Bonus
Very Low Income(1)
5% 20%
10% 33%
1113% or above 3540%
Low Income(2)
10% 20%
2023% or above 3540%
Moderate Income(3)
(Common interest
developments)
10% 5%
20% 15%
4045% or above 3540%
Senior Citizen 35 units (minimum) 20%
(1) For each 1% increase over 5% of the target units, the density bonus shall be increased by 2.5%,
up to a maximum of 3540%.
(2) For each 1% increase over 10% of the target units, the density bonus shall be increased by 1.5%,
up to a maximum of 3540%.
(3) For each 1% increase over 10% of the target units, the density bonus shall be increased by 1%, up
to a maximum of 3540%.
Resolution No. 20-141
Page 3
Section 2. Initiates a zoning code amendment to include the housing program described
above into the Cupertino density bonus ordinance, Municipal Code Chapter 19.56.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of
Cupertino this 15th day of December 2020, by the following vote:
Vote Members of the City Council
AYES: Paul, Chao, Moore, Wei, Willey
NOES: None
ABSENT: None
ABSTAIN: None
SIGNED:
___________________ ________
Darcy Paul, Mayor
City of Cupertino
_________________________
Date
ATTEST:
_________________________________
Kirsten Squarcia, City Clerk
_________________________
Date
December 17, 2020
December 17, 2020