On July 16, 2020, the Planning Commission recommended approval of Text Amendment No. A-028-2020 to amend the density bonus and other incentives for affordable housing that are applicable to residential and Mixed Use zones. During the Planning Commission’s public hearing no one came forward to speak for or against the proposed Amendment.

The attached ordinance and Zoning Text Amendment make the following revisions to the Land Use (Zoning) regulations of the Municipal Code:

• The first major revision to the Municipal Code is to remove the density bonus regulations from the section pertaining to “special uses” under the single-family residential and multi-family residential zones and place them in the sections that apply to these zone’s “development standards.”  The density bonus regulations do not apply to uses, but affect the City’s development standards in residential zones.

• Currently, the Land Use Code does not include density bonus regulations applicable to residential development in the mixed-use zone.  The Zoning Text Amendment adds density bonus and other incentives for affordable housing in the mixed-use zones.

• Additionally, rather than copying all of the provisions of State law into the Municipal Code, as they currently exist in the Land Use Code, the new regulations simply specify that the specific provisions of State law that affect development standards in the residential and mixed use zones apply to residential development in those zones.

• The Density Bonus Law requires that the City ensure that the affordability of the required number of units be preserved for a minimum of 55 years if a density bonus and/or other incentives are granted to a development.  The City is further required to monitor the continued affordability of the units during the affordability period.  Other than the 55-year covenant requirement, the Density Bonus Law does not specify the form and substance of the document that is required to be recorded against a property subject to the covenants. 

The Zoning Text Amendment specifies the following requirements:

• The affordable units must be constructed concurrently with, or prior to, the construction of any market-rate units.
• The affordable units must be integrated with the market-rate units so that affordable units are not “segregated” to a specific area of the development.
• The developer must establish a marketing program and management plan to ensure that the affordable units are always available to households qualifying under the affordability requirements.

Provisions applicable to Section 8 vouchers.  Section 8 of the United States Housing Act of 1937 establishes a program whereby the Federal Government provides vouchers to income-qualifying households whereby the household rents a unit at the negotiated market rent.  The household pays up to 30% of its household income towards the market rent and the voucher pays the landlord the balance.  The Garden Grove Housing Authority manages the Section 8 program in the City.  Because Section 8 vouchers pay market rent, the affordable units in a development should not be rented to Section 8 tenants because it defeats the purpose of both the Section 8 voucher program and the affordable housing incentive program under the Density Bonus regulations.  Section 8 tenants will be allowed to rent an affordable unit temporarily if there are no other units available, but for a limited time until a market-rate unit becomes available.  In sum, the intent of the Zoning Text Amendment is to conform the City’s regulations to the State’s Density Bonus Law. Staff has made minor revisions to the draft ordinance since the Planning Commission hearing. These changes merely add language consistent with the State Density Bonus Law regarding replacement housing requirements, and are shown in bold/underline/italicized text in the attached draft ordinance.

There is no fiscal impact to the City regarding this proposed amendment.

The Planning Commission recommends that the City Council:

• Conduct a Public Hearing;

• Determine that the Ordinance is categorically exempt from the California Environmental Quality Act pursuant to Title 14, California Code of Regulations, Section 15061(b)(3); and

• Introduce the attached Ordinance for the first reading approving Amendment No. A-028-2020 to amend the density bonus and other incentives for affordable housing applicable to residential and mixed-use.