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ORDINANCE 1645ORDINANCE NO. 1645 AN ORDINANCE ADDING CHAPTER 15-35 (DENSITY BONUS) TO THE EL SEGUNDO MUNICIPAL CODE The City Council of the city of El Segundo does ordain as follows:. SECTION 1: The Council finds and declares as follows: A. The State Legislature has declared that the lack of housing, including providing for a variety of housing types for all income levels and special needs groups, is a critical problem that threatens the economic, environmental, and social quality of life in California. B. Government Code Section 65583 requires that the City's Housing Element address governmental constraints to the development of housing, including providing for a variety of housing types for all income levels. C. The City Council of the City of El Segundo adopted the City's 2021-2029 Housing Element on February 1, 2022. D. Government Code Section 65915 requires that local governments adopt procedures for processing a density bonus application. E. Program 7 of the City's 2014-2021 Housing Element provides that the City will establish a density bonus program that is consistent with California Law. F. The Legislature amended Government Code Section 65915 in 2019 to clarify certain provisions of Density Bonus Law, and the City wishes to update the Development Code to ensure consistency with State law and clarify how to implement the density bonus program. G. On June 23, 2022, the Planning Commission held a public hearing to receive public testimony and other evidence regarding the proposed ordinance; the Planning Commission adopted Resolution No. 2921 recommending that the City Council introduce and adopt the density bonus ordinance. H. On February 21, 2023, the City Council held a duly noticed public hearing and considered the information provided by City staff and public testimony regarding the updated Ordinance; and This Ordinance and its findings are made based upon the entire administrative record including, without limitation, testimony and evidence presented to the City Council at its February 21, 2023 hearing and the staff report submitted by the Community Development Department. ORDINANCE NO. 1645 PAGE 1 of 7 SECTION 2: Factual Findings and Conclusions. The City Council finds that introducing and adopting the proposed ordinance will amend the City's municipal code to bring it into compliance with state law. SECTION 3: General Plan Findings. As required under Government Code § 65454 the proposed Ordinance is consistent with the City's General Plan as follows: A. The proposed zone text amendment is consistent with the Housing Element goals, objectives and policies. Specifically, the zone text amendment is consistent with Goal No. 4 to remove governmental constraints on housing development, in that it will remove development restrictions that limit the number of affordable housing units that can be produced in the City. In addition, the zone text amendment is consistent with Goal No. 2 (assisting in the production of affordable housing) and Program 7, Zoning Revisions. SECTION 4: Zone Text Amendment Findings. In accordance with ESMC § 15-26-4 and based on the findings set forth in Section 3, the proposed amendments are consistent with the goals, policies, and objectives of the ESMC as follows: A. The amendments are consistent with the purpose of the ESMC, which is to serve the public health, safety, and general welfare and to provide the economic and social advantages resulting from an orderly planned use of land resources. B. It is necessary to facilitate the development process and ensure the orderly location of uses within the City. SECTION 5: Environmental Assessment. Based on the facts set forth in Section 2, the City Council finds that the zone text amendment is exempt from further review under the California Environmental Quality Act ("CEQA") pursuant to CEQA Guidelines § 15061(b)(3)), because it consists only of minor revisions to existing zoning regulations and related procedures and does not have the potential for causing a significant effect on the environment. SECTION 6:, ESMC Chapter 15-35 (Density Bonus) is added to read as follows: CHAPTER 35 Density Bonus 15-35-1 : Purpose 15-35-2 : Application 15-35-3 :Density Bonus Application 15-35-4: Review and Determination 15-35-5 : Waiver of Development Standards 15-35-6 : Agreement and Additional Provisions ORDINANCE NO. 1645 PAGE 2 of 7 15-35-1 : Purpose It is the purpose of this Chapter to encourage the production of very low-income, low- income, moderate -income and senior citizens housing units in accordance with Government Code Sections 65915 through 65918, as may be amended from time to time ("State Density Bonus Law"). In enacting this section, it is also the intent of the City to facilitate the development of affordable housing and to implement the goals, objectives, and policies of the housing element of the City's General Plan. A copy of the current State Density Bonus Law shall be kept on file with the Development Services Department. 15-35-2 : Application This Chapter shall apply to any qualifying residential development application which meets the criteria to receive a density bonus. 15-35-3 : Density Bonus Application A. In addition to any other review required for a proposed housing development, applications for density bonus shall be filed on a form approved by the Development Services Director ("director"). The application for a density bonus shall be filed concurrently with an application for a development. At the time the application is submitted, the applicant shall pay a density bonus application fee, established by City Council resolution. B. An applicant for a density bonus must file an application for a density bonus with the director concurrently with the application for all other entitlements necessary for the proposed housing development. C. The application must contain information sufficient to fully evaluate the request under the requirements of this chapter and Government Code section 65915, including, without limitation, the following: 1. A description of the proposed housing development, including an explanation of how the proposed project will satisfy the eligibility requirements of Government Code section 65915; 2. The total number of housing units proposed in the project, including unit sizes and the number of bedrooms; 3. The total number of units proposed to be granted through the density increase over and above the otherwise maximum density for the project site; 4. The total number of units to be made affordable to or reserved for sale or rental to very low, low or moderate -income households, or senior citizens, or other qualifying residents consistent with state law; ORDINANCE NO. 1645 PAGE 3 of 7 5. A list of any concessions or incentives being requested to facilitate the development of the project, together with documentation of resulting cost reductions necessary to provide for affordable housing costs; and 6. Any other information the director determines necessary to process and evaluate the proposal consistent with Government Code section 65915. 15-35-4 : Review and Determination A. For a housing development qualifying pursuant to the requirements of Government Code Section 65915, the City shall grant a density bonus in an amount specified by Government Code Section 65915. Except as otherwise required by Government Code Section 65915, the density bonus units shall not be included when calculating the total number of housing units that qualifies the housing development for a density bonus. B. For the purpose of calculating the density bonus, the "maximum allowable residential density" shall be the maximum density allowed under the zoning ordinance and land use element of the general plan, or, if a range of density is permitted, the maximum allowable density for the specific zoning range and land use element of the general plan applicable to the project. Where the density allowed under the zoning ordinance is inconsistent with the density allowed under the land use element of the general plan, the maximum density allowed in the general plan shall prevail. C. The City shall grant the applicant the number of incentives and concessions required by Government Code Section 65915. The City shall grant the specific concession(s) or incentive(s) requested by the applicant, unless it makes any of the relevant written findings stated in Government Code Section 65915(d)(1). D. The applicant may request, and the City shall grant, a reduction in parking requirements in accordance with Government Code Section 65915(p), as that section may be amended from time to time. 15-35-5 : Waiver of Development Standards A. Except as restricted by Government Code Section 65915, the applicant for a density bonus may submit a proposal for the waiver or reduction of development standards that have the effect of physically precluding the construction of a housing development incorporating the density bonus and any incentives or concessions granted to the applicant. A request for a waiver or reduction of development standards shall be accompanied by documentation demonstrating that the waiver or reduction is physically necessary to construct the housing development with the additional density allowed pursuant to the density bonus and incorporating any incentives or concessions required to be granted. The City shall approve a waiver or reduction of a development standard, unless it finds that: ORDINANCE NO. 1645 PAGE 4 of 7 1. The application of the development standard does not have the effect of physically precluding the construction of a housing development at the density allowed by the density bonus and with the incentives or concessions granted to the applicant; 2. The waiver or reduction of the development standard would have a specific, adverse impact, as defined in paragraph (2) of subdivision (d) of Section 65589.5, upon health, safety, or the physical environment, and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact; 3. The waiver or reduction of the development standard would have an adverse impact on any real property that is listed in the California Register of Historical Resources; or 4. The waiver or reduction of the development standard would be contrary to state or federal law. 15-35-6 : Agreement and Additional Provisions A. The applicant shall enter into an agreement with the City to ensure the continued affordability of all affordable units or the continued reservation of such units for qualifying senior citizens. Prior to receiving a building permit for any project that receives a density bonus or any incentive, concession, waiver, or reduction of development standards pursuant to this section, such agreement shall be recorded as a covenant against the property. B. For any development project that is granted a density bonus or other benefit pursuant to this section, the affordable units that qualify the project as eligible for a density bonus, must be constructed concurrently with or prior to the construction of any market rate units. C. In addition, the affordable units must be integrated with the market rate units so that there is a mix of affordable and market rate units, if any, in each building of the development project. D. An applicant shall not receive a density bonus or other incentive or concession unless the housing development is entitled to such a bonus, incentive or concession under Government Code Section 65915. E. The provisions of this subdivision shall be interpreted to fulfill the requirements of Government Code Section 65915. Any changes to that Government Code Section 65915 shall be deemed to supersede and govern any conflicting provisions contained herein. F. The director is authorized to adopt administrative regulations and procedures necessary to implement this chapter consistent with Chapter 4.3 (Density Bonuses and Other Incentives) of Division 1 of Title 7 of the Government Code. ORDINANCE NO. 1645 PAGE 5 of 7 SECTION 7: If any part of this Ordinance or its application is deemed invalid by a court of competent jurisdiction, the City Council intends that such invalidity will not affect the effectiveness of the remaining provisions or applications and, to this end, the provisions of this Ordinance are severable. SECTION 8: The City Clerk is directed to certify the passage and adoption of this Ordinance; cause it to be entered into the City of El Segundo's book of original ordinances; make a note of the passage and adoption in the records of this meeting; and, within 15 days after the passage and adoption of this Ordinance, cause it to be published or posted in accordance with California law. SECTION 9: This Ordinance will become effective 30 days following its passage and adoption. PASSED AND ADOPTED this 7t" day of March, 2023, ATTEST: L Tracy Weaver, Cir Clerk APPRO E S TO FORM: Mark D. Hensley, City Attorney Drew Boyles, Mayor ORDINANCE NO. 1645 PAGE 6 of 7 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS CITY OF EL SEGUNDO ) I, Lili Sandoval, Deputy City Clerk of the City of El Segundo, California, do hereby certify that the whole number of members of the City Council of said City is five; that the foregoing Ordinance No. 1645 was duly introduced by said City Council at a regular meeting held on the 21st day of February 2023, and was duly passed and adopted by said City Council, approved and signed by the Mayor, and attested to by the Deputy City Clerk, all at a regular meeting of said Council held on the 7t" day of March, 2023, and the same was so passed and adopted by the following vote: AYES: Mayor Boyles, Mayor Pro Tern Pimentel, Council Member Pirsztuk, Council Member Giroux, and Council Member Baldino NOES: None ABSENT: None ABSTAIN: None WITNESS MY HAND THE OFFICIAL SEAL OF SAID CITY this day of March, 2023. Lili SandoI, Deputy City Clerk of the City of El Segundo, California ORDINANCE NO. 1645 PAGE 7 of 7