The provisions of this chapter shall be known as the density bonus and incentive procedure for affordable housing. The purpose of these provisions is to prescribe the procedure for the granting of a density bonus and incentive(s), under specified conditions, to encourage the provision of affordable housing. The density bonus ordinance codified in this chapter is intended to comply with the State Density Bonus Law, Government Code Section 65915, which provides that a local government shall grant a density bonus and an additional concession, or financially equivalent incentive(s), to a developer of a housing development agreeing to construct a specified percentage of housing for low income households, very low income households or senior citizens. This procedure shall apply to all proposals to create five or more dwelling units in which the developer is requesting the density bonus. (Ord. 12331 § 2 (part), 2001)

A. Affordable Housing. “Affordable housing” shall mean that the relevant housing is available on terms such that the housing costs are less than a specified percentage of the gross income of households within a particular income category (adjusted for household size, depending on the number of bedrooms in the dwelling unit) as determined for the Oakland Primary Metropolitan Statistical Area (PMSA). For a rental unit, housing costs include rent and a reasonable allowance for utilities. For a for-sale unit, housing costs include loan principal, loan interest, property and mortgage insurance, property taxes, home owners’ association dues and a reasonable allowance for utilities.
1. Where units are targeted as being affordable to low income households, housing costs for rental units must be equal to or less than thirty (30) percent of the gross monthly income, adjusted for household size, of sixty (60) percent of the median income for the Oakland PMSA. Housing costs for for-sale units must be equal to or less than thirty (30) percent of the gross monthly income, adjusted for household size, of seventy (70) percent of the median income.
2. Where units are targeted as being affordable to very low income households, housing costs for rental units and for for-sale units must be equal to or less than thirty (30) percent of the gross monthly income, adjusted for household size, of fifty (50) percent of the median income for the Oakland PMSA.
3. Where units are targeted as being affordable to moderate income households, housing costs for rental units must be equal to or less than thirty (30) percent of the gross monthly income, adjusted for household size, of one hundred twenty (120) percent of the median income for the Oakland PMSA. Housing costs for for-sale units must be equal to or less than thirty-five (35) percent of the gross monthly income, adjusted for household size, of one hundred twenty (120) percent of the median income.
B. Density Bonus. A “density bonus” is a density increase over the otherwise maximum permitted residential density. For purposes of this chapter, the density bonus shall not be included when determining the number of target units that must be affordable to the relevant income group. When awarding multiple density bonuses, such as for senior citizens housing, the amount of each density bonus shall be determined based on the allowable base density, exclusive of any bonuses. In no event may the city grant a density bonus which would result in the project exceeding the general plan density maximum unless the project proposes to provide at least (1) twenty (20) percent of the total units of a housing development for lower income households, or (2) ten (10) percent of the total units of a housing development for very low income households, or (3) fifty (50) percent of the total dwelling units of a housing development for qualifying residents (seniors) or (4) at least twenty (20) percent of the total units of a residential condominium housing development for moderate income households. When calculating the final unit count allowed with the density bonus, any fractional remainders shall be rounded up to the nearest whole number.
C. Density Incentive. A “density incentive” is a benefit offered by the city to facilitate construction of eligible projects as defined by the provisions of this chapter and is limited to the relaxation of one of the following standards in order to allow utilization of a density bonus:
1. Required off-street parking;
2. Required setbacks;
3. Maximum building height;
4. Required open space;
5. Maximum floor-area ratio;
6. Minimum lot area.
D. “Economically feasible” means that a housing development can be built with a reasonable rate of return. The housing developer’s financial ability to build the project shall not be a factor.
E. Moderate, Low and Very Low Income Households. “Moderate, low and very low income households” means those households whose income matches levels determined periodically by the U.S. Department of Housing and Urban Development, based on the Oakland Primary Metropolitan Statistical Area (PMSA) median income levels by family size, under which:
1. “Moderate income” is defined as greater than eighty (80) percent to one hundred twenty (120) percent of median income.
2. “Low income” is defined as greater than fifty (50) percent to eighty (80) percent of median income.
3. “Very low income” is defined as less than fifty (50) percent of median income.
F. Target Dwelling Unit. A “target dwelling unit” is a dwelling unit that will be offered for rent or sale exclusively to and which and which shall be affordable to the designated income group or senior citizens.
G. Housing Development. A “housing development” is as defined in California Government Code Section 65915(g). (Ord. 12501 § 74, 2003: Ord. 12331 § 2 (part), 2001)

A developer may submit to the Director of City Planning a preliminary proposal for the development of housing and utilization of the density bonus procedure pursuant to this chapter prior to the submittal of any formal application. The city shall, within thirty (30) days of receipt of a written proposal, notify the housing developer in writing of its local density procedures. The housing developer shall show that any requested incentives are necessary to make the affordable units economically feasible.
A formal request for a density bonus and related incentive(s) shall be included in the application for design review for a housing development and shall be processed and considered as part of same. The application for a density bonus and related incentive(s) shall include:
A. A written statement specifying the desired density increase, incentive requested and the type, location, size and construction scheduling of all dwelling units;
B. A project financial report (pro forma), as required to justify the granting of any incentive(s) in addition to the density bonus;
C. Any other such information as may be required to permit the review of the proposal in the context of the required findings, as requested by the Director of City Planning.
D. The following density bonus requests shall also require a Major Conditional Use Permit and shall not be eligible for a density incentive:
1. Application for a density bonus of greater than twenty-five (25) percent;
2. Application for a density bonus of twenty-five (25) percent or less if the project would provide moderate and low income housing as described in Section 17.107.040A(2)(d). (Ord. 12331 § 2 (part), 2001)

A. Density Bonus.
Whenever action is taken on an application for design review of a housing development of at least five units which also seeks approval of a density bonus, the city shall grant the applicant a density bonus and, unless findings justifying the denial of an incentive are adopted, one density incentive, as set forth in Section 17.107.020(C), if the applicant proposes to build one of the following. Nothing in this section shall preclude the requirement for design review as provided for in the individual zone regulations:
1. Where the request is for a density bonus of twenty-five (25) percent, or less if requested by the applicant, and the applicant proposes that:
a. Twenty (20) percent of the total housing units shall be affordable to low income households; or
b. Ten (10) percent of the total housing units shall be affordable to very low income households; or
c. Fifty (50) percent of the total housing units shall be affordable to qualifying residents as defined in Section 51.3 of the Civil Code (senior citizens); or
d. Fifty (50) percent of the total housing units are affordable to moderate income households and an additional ten percent of the total housing units are affordable to low income households and the proposal conforms to the general use permit criteria set forth in the conditional use permit procedure in Chapter 17.134 except that the density bonus cannot exceed the maximum density in the General Plan.
2. Where the request is for a density bonus of ten (10) percent, or less if requested by the applicant, and the project is a residential condominium development, and twenty (20) percent of the total housing units are and will continue to be affordable to moderate income households.
3. Where the request is for a density bonus of greater than twenty-five (25) percent, but not more than one hundred (100) percent, the reviewing body shall find that the proposal conforms to the general use permit criteria set forth in the conditional use permit procedure in Chapter 17.134 and that the proposal provides additional housing units that are affordable to very low income, low income or moderate income households, beyond the minimum requirements described above, proportional to the additional density bonus. Proposals for senior citizen housing projects that conform to the requirements of Section 17.106.060 may request a total density bonus, over the allowable base density, of up to one hundred (100) percent.
B. Density Incentive. Housing developments with affordable units which meet at least one of the requirements set forth in Section 17.107.040A (1)(a), (b), or (c), or Section 17.107.040A(2), are entitled to one density incentive of the applicant’s choosing, unless a written finding, based on substantial evidence is made pursuant to Government Code section 65915(b) that an incentive is not required in order to provide for affordable housing costs as defined in Section 50052.5 of the Health and Safety Code, or for rents for the targeted units to be set as specified in this Section. Where the applicant has requested a meeting to discuss the requested incentive, the City shall deny that incentive only if it finds, in writing, that the incentive would have a specific adverse impact as defined in paragraph (2) of subdivision (d) of Government Code section 65589.5, upon public health, safety or the physical environment or on any real property that is listed in the California Register of Historical Resources and or which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact without rendering the development unaffordable to low and moderate income households or that the applicant has received financial assistance from the city or other entity that would offset the need for an incentive. (Ord. 12501 § 75, 2003: Ord. 12331 § 2 (part), 2001)

All approvals for any affordable housing applications that include a density bonus and/or density incentive shall be conditioned to ensure the continued affordability of the specified units for a period of not less than thirty (30) years, and to restrict occupancy only to residents who satisfy the affordability requirement for the specified unit(s). Prior to issuance of a building permit for the affordable housing project, the applicant shall record as a deed restriction in the Alameda County Recorder’s Office, notice of this requirement, in a form prescribed by the Director of City Planning. (Ord. 12501 § 76, 2003)

Only those households meeting the standards for very low income, low income, moderate income or senior citizens shall be eligible to occupy target dwelling units. (Ord. 12331 § 2 (part), 2001)

All buyers of for-sale target dwelling units shall enter into a density bonus resale agreement with the city prior to purchasing the unit or property. The resale agreement shall specify that the title to the subject property or unit may not be transferred without prior approval of the city. (Ord. 12331 § 2 (part), 2001)

Rental target dwelling units shall be managed/operated by the developer or agent. Each developer of rental target dwelling units shall submit an annual report to the city identifying which units are target dwelling units, the monthly rent, vacancy information, monthly income for tenants of each target rental dwelling unit throughout the prior year, and other information required by the city, while ensuring the privacy of the tenant. (Ord. 12331 § 2 (part), 2001)

The city shall establish an administrative fee for city monitoring of target dwelling units, the amount to be established by the City Council, for target dwelling units, to be paid prior to the issuance of building permit(s). (Ord. 12331 § 2 (part), 2001)

Nothing in this chapter shall limit the city’s right to deny an affordable housing or senior citizen housing project if, based on substantial evidence, the decision-making body can make any one of the findings set forth in Government Code Section 65589.5(d). (Ord. 12331 § 2 (part), 2001)