As of January 1, 2021, in an effort to promote affordable housing, the State’s Density Bonus law went into effect.  As a result, the City of Garden Grove amended Municipal Code Section 9.60.040—Residential Density Bonuses and other Incentives for Affordable Housing, to bring the code into compliance with State law.  The Density Bonus law promotes development of affordable housing through increased density, concessions and incentives.

On November 18, 2021, the Garden Grove Planning Commission adopted Resolution No. 6034-21 approving Site Plan No. SP-105-2021 and Lot Line Adjustment No. LLA-028-2021 to construct a new five-unit apartment complex.  The Site Plan’s “Conditions of Approval” provide a density bonus to the project in exchange for the Developer’s agreement to restrict one (1) of the five (5) units for rental to, and occupancy by, very low income households at an affordable rent for a period of 55 years. 

State Density Bonus Affordable Housing Law, the Site Plan and Resolution provide for three concession/incentives for this project.  The concessions for this project are:

1. To increase the maximum building height from 35 feet to 37 feet;
2. To allow the third story building area to increase from 50% threshold to 100%; and
3. To reduce the required distance between residential units and the drive aisle along the northerly property line from 10 feet to zero feet.

Additionally, the applicant also requested a Lot Line Adjustment approval to consolidate the two (2) existing parcels into one (1) single lot.

In exchange for the aforementioned increased density and concessions, the Conditions of Approval require the Developer to enter into a Density Bonus Housing Agreement with the City.  This Agreement details how the affordable housing provisions of this project will be implemented and monitored for the 55-year affordability period.

None.

It is recommended that the City Council:

• Approve the attached Density Bonus Housing Agreement by and between the City of Garden Grove and Toby Nguyen (Developer) and/or Phil Dong (Owner); and

• Authorize the City Manager to execute the Agreement and all other documents necessary to implement the agreement, and to make minor modifications as appropriate thereto.

By:    Monica Covarrubias

          Sr. Project Manager