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

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SPR No. 2023-02 and DBA No. 2023-02 (322 N Harbor Blvd.) September 25, 2023 Page 3 feasible, the law allows developers to seek 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. Of the total units in the development, two units are proposed to be affordable to very low-income. Therefore, the project would have an eleven - percent affordability rate. As such, State density bonus law allows the developer to request a maximum density bonus of 35-percent. Due to the project's eleven -percent affordability rate, the developer can seek two density bonus concessions and unlimited waivers that assist with production of the units onsite, 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 35-percent density bonus. As such, the maximum unit yield for the 0.34-acre site using the most "intense" building type allowed in CDR and the State density bonus is twenty-three units, as outlined in Table 2. However, the applicant is proposing to develop twenty-two units on the site. Table 2: Density Bonus Calculation Affordable Unit —11% 2 units)* Density Bonus Calculation Units Allowed Base Density - Stacked Dwelling Building type 0.34 acres x 50 du/ac 17 Units** most "intense" type allowed in CDR 35-Percent State Density Bonus 17 units x 0.35 +6 Units** Total Units Allowed 23 Units Total Units Proposed 22 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 9/25/2023 Planning Commission 2-3