These Santa Cruz County Density Bonus Guidelines are maintained as a policy interpretation of County Code
Chapter 17.12 to implement State law regarding Density Bonus as set forth in Government Code Section 65915
et seq. These Guidelines shall be revised and updated to reflect future changes in State Density Bonus law and are
utilized by the County to accomplish the objectives of State Density Bonus law, and establish regulations in
addition to all other applicable State and County laws and regulations governing Density Bonus.
Upon request by a developer, development proposals that meet the requirements set forth in these Guidelines
shall be granted a density bonus and incentives or concessions, as applicable.
The granting of a density bonus shall not be interpreted, in and of itself, to require a General Plan
amendment, Local Coastal Plan amendment, zoning change, or other discretionary approval.
Density Bonus regulations apply only to housing developments consisting of five (5) or more dwelling units or
lots. All dwelling units (affordable and market rate) that are part of a density bonus project must
be constructed on-site, except as allowed under #6. Land Donation (below).
1. Definitions As used in these Guidelines, the words below shall be defined as follows:
- Child care facility - a child day care facility other than a family day care home,
including, but not limited to, infant centers, preschools, extended day care facilities, and school age child care centers.
- Condominium - a condominium consists of an undivided interest in common in a portion of real property coupled
with a separate interest in space called a unit, the boundaries of which are described on a recorded final map,
parcel map, or condominium plan in sufficient detail to locate all boundaries thereof.
- Development standard - includes site or construction conditions that apply to a residential development pursuant
to any ordinance, General Plan element, charter amendment, or other local condition, law, policy, resolution or regulation.
- Lower income - households are lower income when the household income of the person or family does not exceed the
qualifying limits for lower income, adjusted for family size, as established and amended from time to time pursuant
to Section 8 of the United States Housing Act of 1937. This means 80 percent of area median income, adjusted for
family size and revised annually. See the Affordable Housing Guidelines for allowed rent levels
- Maximum allowable residential density - the density allowed under the zoning ordinance, or if a range of density
is permitted, means the maximum allowable density for the specific zoning range applicable to the project.
- Moderate income - households are moderate income when the household income of the person or family does not exceed
120 percent of area median income, adjusted for family size as established and amended from time to time by the United
States Department of Housing and Urban Development pursuant to Section 8 of the United States Housing Act of 1937.
See the Affordable Housing Guidelines for allowed purchase prices
- Planned development - a development (other than a community apartment project, a condominium project, or a stock
cooperative) having either or both of the following features:
- The common area is owned either by an association or in common by the owners of the separate interests who
possess appurtenant rights to the beneficial use and enjoyment of the common area.
- A power exists in the association to enforce an obligation of an owner of a separate interest with respect
to the beneficial use and enjoyment of the common area by means of an assessment which may become a lien upon the
separate interests.
- Senior Housing Project - residential development developed and housing persons 55 years of age or older.
- Specific, adverse impact - a significant, quantifiable, direct, and unavoidable impact, based on objective,
identified written public health or safety standards, policies, or conditions as they existed on the date the
application was deemed complete.
- Very low income households - persons and families whose incomes do not exceed the qualifying limits for very low
income families as established and amended from time to time pursuant to Section 8 of the United States Housing Act of 1937.
Generally, 50 percent of area median income, adjusted for family size and revised annually. See the Affordable
Housing Guidelines for allowed rent levels.
2. Qualifications for Density Bonus For a project to qualify for a density bonus, it must first meet any affordable requirements applicable
to the project, such as inclusionary units under Chapter 17.10, non-residential to residential designation
conversion requirements, and any affordable requirement specific to the parcel through a Combining District
or specific General Plan policy. A project will qualify for density bonus when adding affordable units beyond
those required for the project. As such, affordable units developed to meet the County's inclusionary housing
requirements pursuant to Chapter 17.10 of the County Code do NOT qualify as affordable units for the purposes of
calculating density bonus. Similarly, affordable units developed to meet the County's non-residential to
residential conversion requirements pursuant to County Code sections 13.01.060, 13.10.215 and 17.10.030 do not
qualify as affordable units for the purposes of calculating density bonus. However, non-residential to
residential designation conversion projects do qualify for up to 3 incentives and concessions, as described
in these Guidelines, even if a density bonus is not requested. See Tables 7 through 11 below for examples
on how to calculate density bonus.
Apart from the affordable requirements noted above, a project must propose one of the following to qualify
for density bonus:
| Table 1. Minimum Percentage of Affordable Units |
| 5% very low income |
| 10% lower income |
| 100% senior project |
| 10% ownership for moderate income (condominiums or planned development) |
|
| This minimum percentage is based on the percent of
the maximum number of units allowed under the zoning for the parcel.
For example: if the zoning allows 20 units on the parcel, 2 units
of lower income (10% of 20 units) – in excess of Chapter 17.10
requirements - qualifies the project for a density bonus.
|
|
- Calculating Basic Density Bonus
If a developer proposes to meet the minimum affordable units required to qualify for a
density bonus, then the density bonus is calculated as follows:
Table 2. Basic Density Bonus |
5% very low income |
20% base density bonus |
10% lower income |
20% base density bonus |
100% senior project |
20% base density bonus |
10% ownership for moderate income |
5% base density bonus |
-
Calculating Possible Additional Density Bonus
A development may qualify for more density bonus if a higher percentage of affordable units is proposed
beyond the minimum required percentage above. Density bonus beyond the minimum requirements for density
bonus is calculated on a sliding scale based on affordability level.
Table 3.Sliding Scale Density
Bonus |
Income level |
For each percentage increase beyond the
minimum density bonus listed above, the density bonus percentage is increased
by: |
Very Low Income |
2.5% |
Lower Income |
1.5% |
Moderate Income (ownership) |
1% |
In no case may the total density bonus allowed (basic density bonus plus sliding scale density bonus) exceed 35%.
This sliding scale density bonus calculates as follows:
Table 4. Very Low Income
Calculation |
Percentage Very Low Income Units (beyond 17.10
requirements) |
Percentage Density Bonus |
5 |
20 |
6 |
22.5 |
7 |
25 |
8 |
27.5 |
9 |
30 |
10 |
32.5 |
11 |
35 |
Table 5. Low Income Calculation |
Percentage of Low Income Units (beyond 17.10
requirements) |
Percentage Density Bonus |
10 |
20 |
11 |
21.5 |
12 |
23 |
13 |
24.5 |
14 |
26 |
15 |
27.5 |
16 |
29 |
17 |
30.5 |
18 |
32 |
19 |
33.5 |
20 |
35 |
*All calculations resulting in fractional units shall be rounded up to
the next whole number.
|
Table 6. Moderate Income
Calculation Condo/Planned Development |
Percentage Moderate Income Ownership Units(beyond
17.10 requirements) |
Percentage Density Bonus |
10 |
5 |
11 |
6 |
12 |
7 |
13 |
8 |
14 |
9 |
15 |
10 |
16 |
11 |
17 |
12 |
18 |
13 |
19 |
14 |
20 |
15 |
21 |
16 |
22 |
17 |
23 |
18 |
24 |
19 |
25 |
20 |
26 |
21 |
27 |
22 |
28 |
23 |
29 |
24 |
30 |
25 |
31 |
26 |
32 |
27 |
33 |
28 |
34 |
29 |
35 |
30 |
36 |
31 |
37 |
32 |
38 |
33 |
39 |
34 |
40 |
35 |
|
-
Sample Calculations
EXAMPLES:
Based on the zoning and General Plan allowing for 20 units on a site (Chapter 17.10 would require 3
affordable units - 15% of the development):
Table 7. Very Low Income Minimum
Density Bonus Example |
Maximum Units allowed by Zoning |
20 units |
Moderate income units required under Chapter 17.10 |
3 moderate income units (and 17 market rate units) |
Number of units offered to qualify for minimum Density
Bonus (from Table 1) |
5% of the 20 units allowed by the zoning = 1 very
low income unit |
Number of units offered (subtotal) |
1 very low income unit, 3 moderate income units, and
16 market rate units |
Density Bonus percentage (from Table 4) |
20% X 20 total units = 4 additional units |
Final unit distribution of project (total) |
24 units (1 very low income unit, 3 moderate income
units, and 20 market rate units |
Table 8. Very Low Income Maximum
Density Bonus Example |
Maximum Units allowed by Zoning |
20 units |
Moderate income units required under Chapter 17.10 |
3 moderate income units (and 17 market rate units) |
Number of units offered to qualify for minimum Density
Bonus (from Table 1) |
11% of the 20 units allowed by the zoning = 3 very
low income units (2.2 units rounded up to 3) |
Number of units offered (subtotal) |
3 very low income units, 3 moderate income units,
and 14 market rate units |
Density Bonus percentage (from Table 4) |
35% X 20 total units = 7 additional units |
Final unit distribution of project (total) |
27 units (3 very low income units, 3 moderate income
units, and 21 market rate units) |
Table 9. Low Income Density Bonus
Example |
Maximum Units allowed by Zoning |
20 units |
Moderate income units required under Chapter 17.10 |
3 moderate income units (and 17 market rate units) |
Number of units offered to qualify for minimum Density
Bonus (from Table 1) |
10% of the 20 units allowed by the zoning = 2 low
income units |
Number of units offered (subtotal) |
2 low income units, 3 moderate income units, and 15
market rate units |
Density Bonus percentage (from Table 4) |
20% X 20 units = 4 additional units |
Final unit distribution of project (total) |
24 units (2 low income units, 3 moderate income units,
and 19 market rate units) |
Table 10. Senior Density Bonus Example |
Maximum Units allowed by Zoning |
20 units |
Moderate income units required under Chapter 17.10 |
3 moderate income units (and 17 market rate units) |
Number of units offered to qualify for minimum Density
Bonus (from Table 1) |
100% of the 20 units allowed by the zoning and designated
as Senior = 20 Senior units |
Number of units offered (subtotal) |
3 Senior moderate units, 17 Senior units |
Density Bonus percentage (from Table 4) |
20% X 20 units = 4 additional units |
Final unit distribution of project (total) |
24 units (3 Senior moderate income units, 21 Senior
market rate units) |
Table 11. Moderate Income Density Bonus ExampleCondominium
and Planned Developments Only |
Maximum Units allowed by Zoning |
20 units |
Moderate income units required under Chapter 17.10 |
3 moderate income units (and 17 market rate units) |
Number of units offered to qualify for minimum Density
Bonus (from Table 1) |
10% of the 20 units allowed by the zoning and designated
as ownership units = 2 moderate income units |
Number of units offered (subtotal) |
5 moderate income units (2 must be ownership units),
15 market rate units |
Density Bonus percentage (from Table 4) |
5% X 20 units = 1 additional unit |
Final unit distribution of project (total) |
21 units (5 are moderate income of which 2 must be ownership
units, 16 market rate units) |
3. Concessions/Incentives
- The developer may submit a proposal for specific incentives or concessions.
The County, through the approving body, shall grant the incentive or concession requested unless
the approving body makes one of the following written findings:
- The incentive or concession is not required in order to provide the affordable housing units OR
- The incentive or concession requested would result in a specific adverse impact upon public
health and safety or the physical environment or on any real property that is listed in the California Register
of Historical Resources, and there is no feasible method to mitigate or avoid such impact without making the
development of low and moderate income units unaffordable.
- Depending on the percentage of affordability, projects qualify for one, two or three incentives or
concessions. The number of concessions or incentives a project qualifies for is determined as follows:
- Projects qualifying for the base density bonus also qualify for one concession or incentive.
(5% very low, 10% low, and 10% moderate ownership)
- To qualify for 2 concessions or incentives, projects must double their base percentage of
affordable units. (10% very low, 20% low, and 20% moderate ownership)
- To qualify for 3 concessions or incentives, projects must triple their base percentage
of affordable units. (15% very low, 30% low and 30% moderate ownership)
- Incentive or concession means:
- A reduction in site development standards or a modification of zoning code requirements
that exceed the minimum building standards approved by the California Building Standards Commission, including,
but not limited to, a reduction in setback and square footage requirements and in the ratio of vehicular parking
spaces that would otherwise be required. The incentive or concession shall result in identifiable, financially
sufficient, and actual cost reductions.
Examples of the types of concessions or incentives offered as modifications or reductions in site development
standards include the following.
- Reduced setback requirement - each setback constitutes one concession
- Increased height
- Increase number of stories (maximum 3 stories) within the Urban Services Line
- Floor Area Ratio increase
- Incremental lot coverage increase
- Reduction in minimum lot size (commensurate with final density)
- Priority processing (may already be triggered by affordability level of project)
- Approval of mixed use zoning in conjunction with the housing project if commercial, office,
industrial, or other land uses will reduce the cost of the housing development and if the commercial, office,
industrial, or other land uses are compatible with the housing project and the existing or planned development
in the area where the proposed housing project will be located.
- Other regulatory incentives or concessions proposed by the developer or the County that
result in identifiable, financially sufficient, and actual cost reductions. This does not limit or require
the provision of direct financial incentives for the housing development, including the provision of publicly
owned land by the County, or the waiver of fees or dedication requirements.
4. Waiver of Development Standards In addition to the incentives and concessions listed above, a developer may request a waiver or
modification of development or zoning standards (such as winter grading) that would otherwise inhibit
the utilization of the density bonus on specific sites. The developer shall show that the waiver or
modification is necessary to make the project economically feasible. Therefore, the developer must provide a
financial analysis showing that failure to receive a modification or waiver of the development standard makes
the project infeasible, and that the waiver of the standard makes the project economically feasible. This
analysis must be accepted by the Planning Director for a waiver to be considered. The final decision on granting
of a waiver will be made by the approving body. Affordability requirements are not considered development standards.
Nothing in this subdivision shall be interpreted to require the County to waive or reduce development standards
if the waiver or reduction would have a specific, adverse impact upon health, safety, or the physical environment,
and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact. Nothing
in this subdivision shall be interpreted to require a local government to waive or reduce development standards
that would have an adverse impact on any real property that is listed in the California Register of Historical Resources.
5. Parking Requirement Reduction Under State Law, the parking standards for Density Bonus projects must be reduced upon the request of the
developer. (Such reduction in parking standards does not count as one of the incentives or concessions in #3 above)
The reduced parking standards are as follows:
Table 12. Parking Requirements
(after requested reduction) |
0 to 1 bedroom |
One on-site parking space |
2 to 3 bedrooms |
Two on-site parking space |
4 or more bedrooms |
Two and a half on-site parking spaces |
If the resulting number of parking spaces results in a fractional number, the number shall be rounded to the
next whole number. Utilization of this parking requirement allows tandem or uncovered parking. On
street parking shall not be allowed to satisfy the parking requirement.
The number of parking spaces includes disabled and guest parking.
An applicant may request additional parking incentives or concessions beyond those provided in this section. 6. Land Donation Under State law, a developer may opt to donate land in exchange for the granting of a Density Bonus.
The requirements for qualifying for density bonus through land donation are as follows:
- Developer must donate at least one acre of land of sufficient size to accommodate 40 units (defined by State
law as a minimum of one acre);
- The number of units accommodated on the donated land shall not be less than 10% of the total proposed development;
- The land must be appropriately zoned to accommodate very low income affordable housing;
- The land must be served by adequate public facilities and infrastructure;
- The land shall have all necessary permits and approvals, other than building permits, necessary
for the development of very low income housing no later than the date of approval of the final subdivision
map, subdivision map, or residential development application;
- Design review can occur later if it is not reviewed prior to transfer;
- The land is transferred no later than final approval of the final subdivision map, final map or
residential development application for the donating project;
- The land and affordable units must be subject to deed restrictions ensuring continued affordability,
which shall be recorded on the property at the time of dedication;
- The County may require the developer to identify and transfer the land to a specific affordable
housing developer if the land is not donated directly to the County. If the land is not transferred to the
County, the County shall approve of the affordable housing developer;
- The transferred land must be within the boundaries of the development or, with approval of the County,
within a quater mile (1,320 feet) of the boundary of the development.
If the developer meets these qualifications, the development would qualify for a basic 15% density bonus above
the maximum allowed density.
- The density bonus may be increased on a sliding scale such that: for each 1% above 10% of the
total development, the development can have a 1% increase in density bonus, up to a maximum of 35%.
- For example: Land and permits for 15% of the number of units in the development on
donated land = 15% density bonus
7. Child Care A developer may qualify for a density bonus by providing a child care center (not a family day care home)
within or adjacent to the development.
Where the development otherwise qualifies for a density bonus as described in Table 1 above, AND the
developer agrees to include a child care facility onsite or adjacent to the site, the developer is entitled
to a density bonus in the amount of the square footage of the child care OR an additional concession or incentive
if that concession or incentive contributes to the economic feasibility of construction of the child care facility.
Where a child care facility is provided in conjunction with the granting of a density bonus, the following
provisions apply:
- The child care facility shall be operable at least as long as the affordable units are required to remain affordable;
- The children attending the child care center are required to qualify based on household income in the
same percentage as the percentage of affordable housing in the development in accordance with the proportional
affordability level;
- The number of children at each affordability level must be the same or greater than the percentage required
If a finding can be made that there is sufficient child care facilities in the community, no concession or
density bonus is required to be given. |
