CC 10-05-2021 Item No. 10 Density Bonus Ordinance MCA-2021-003_Staff PresentationCity Council
September 14, 2021
Municipal Code Amendment
Density Bonus Ordinance
MCA-2021-003
CC 10-05-2021 Item No. 10
Subject
Amendments to Cupertino Municipal Code Sections
19.56.030 (Table 19.56.030),
19.56.030F,
19.56.040 (Table 19.56.040A) and
Add Section 19.56.080
Purpose: Compliance with AB2345
Background
Affordable Housing strategies (City Work Program
Item FY20/21) updates to City’s Density Bonus
Ordinance
AB 2345 increased maximum density bonus for
non-100 % affordable projects from 35% to 50% in
exchange for a mere 4 to 5% increase in affordability
Provided a City could adopt its own "housing program"
or ordinance, or both, to incentivize development of
affordable housing by allowing bonuses that exceed
35%.
Background
CC Ordinance adopted on May 4, 2021
Department of Housing and Community
Development (HCD) expressed concern
Adopted program by resolution and ordinance
amendments did not create “program” and
provided insufficient incentives.
Income Level of unit
Proportion of Total
Affordable Dwelling Units
Maximum Density
Bonus
Very Low Income
5% 20%
6% - 1211%(1)22.5% - 37.535%
12% - 14%
(2)38.75% - 46.25%
1315% or more 4050%
Low Income
10% 20%
11% -2220%(3)21.5% - 3835%
21% - 23%
(4)38.75% - 46.25%
2324% or more 4050%
Moderate Income
(Common interest
developments)
10% 5%
11% - 4440%(5)6% - 3935%
41% - 43%
(6)38.75% - 46.25%
4544% or above 4050%
Affordable Housing
Development 100%(7)
80% or as specified in
Government Code
Section 65915
Analysis
Consistently approved density bonus projects (Vallco,
Marina, Veranda, and Westport).
City offers host of incentives to incentivize affordable
housing within other parts of Municipal Code
Flexible zoning standards in Planned Development
Zoning District Ordinance.
BMR Housing Program through Chapter 19.172 of
Municipal Code and associated administration and
other manuals.
Analysis
HCD asserts City’s existing density bonus program does
not comply with AB 2345.
Evidence based on analysis by HEG and experience of
San Diego, developers are most likely to use program
by providing very low income housing.
For projects with very low income housing, AB 2345’s
maximum bonus of 50 percent for 15 percent very low
income units is not much different from City’s existing
density-for-affordability ratio which would require 17
percent very low income units for 50 percent density
bonus.
Incentives/Concessions
Unit Type Percent of
Affordable Units
Number of
Incentives/
Concessions
Very Low Income Units 5% or greater 1
10% or greater 2
15% or greater 3
Low Income Units 10% or greater 1
2017%or greater 2
3024% or greater 3
Moderate Income Units 10% or greater 1
20% or greater 2
30% or greater 3
Affordable Housing Development 100%*4
New Section
If any portion of this Chapter 19.56 conflicts with
State Density Bonus Law (Government Code
Section 65915 et seq.) or other applicable state law,
state law shall supersede this Chapter. Any
ambiguities in this section shall be interpreted to be
consistent with State Density Bonus Law. All code
references in this Chapter include all successor
provisions.
CEQA review
Proposed code amendments: (1) will not result in
any direct or reasonably foreseeable indirect
physical change in environment (CEQA
Guidelines Section 15060(c)) and so (2) do not
constitute project under CEQA (CEQA Guidelines
Section 15378).
Amendments can be seen with certainty based
on review of facts to have no possible significant
effect on environment (CEQA Guidelines Section
15061(b)(3)).
PC Recommendation
Met on Aug. 10 and Sept. 14, 2021
Voted 3-2 (No: Madhdhipatla and Wang)
to recommend that Council adopt
amendments
Recommended Action
Adopt Ordinance adopting the proposed
amendments to the City's density bonus ordinance to
incentivize development of affordable housing by
allowing for density bonuses and other incentives as
provided by state law, and providing that City’s
ordinance will be interpreted consistent with state
density bonus law and find all associated actions
exempt from CEQA.
Questions