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Ordinance - 1973ORDINANCE NO.1973 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, AMENDING CERTAIN SECTIONS OF CHAPTER 26 OF THE WEST COVINA MUNICIPAL CODE (ZONING) RELATED TO DENSITY BONUSES AND HOUSING AFFORDABILITY (CODE AMENDMENT NO. 266). WHEREAS, on October 10, 1995, the Planning Commission initiated a code amendment and an associated General Plan amendment relating to the granting of density bonuses and other incentives for the purposes of producing lower -income and senior citizen housing; and WHEREAS, the Planning Commission initiated said code amendment in order to bring the Municipal Code into compliance with the requirements of State law (Government Code Section 65915), which requires the mandatory granting of certain density bonuses and incentives, and to update the City's current density bonus provisions to more effectively assist in the development of lower -income and senior citizen housing; and WHEREAS, the Planning Commission did, on the 12th day of March, 1996, conduct a duly- advertised public hearing as prescribed by law; and said public hearing was continued to the 26th day of March, 1996, and the 9th day of April, 1996, at which time the Planning Commission adopted Resolution No. 04- 96-4349 recommending to the City Council approval of Code Amendment No. 266; and WHEREAS, the City Council considered evidence presented by the Planning Commission, Planning Department, and other interested parties at a duly advertised public hearing on the 21 st day of May, 1996; and WHEREAS, studies and investigations made by the City Council and in its behalf reveal the following facts: 1. According to the Housing Element of the General Plan, the City of West Covina has an identified future housing need of 1,150 new units between July 1989 and June 1996, of which at least 306 units should be targeted toward lower -income households. 2. According to 1990 Census, there were 6,403 lower -income households in West Covina that were paying more than they could reasonably afford for housing. This represents 21 percent of all of the households in West Covina. 3. According to the 1990 Census, there were 1,094 elderly renter households in West Covina. Of these, 875 households (80 percent), are lower -income households in need of housing assistance. 4. It is the established goal of the Housing Element of the General Plan "to provide all residents of West Covina with opportunities to live in decent, safe, sanitary and energy -efficient .housing at costs they can reasonably afford." 5. It is the established policy of the Housing Element to "facilitate the development of housing for lower -income households, the elderly, the handicapped first-time buyers and young renters," and to "encourage the construction of a wide variety of new housing to meet the needs of all residents." Z:\CC\ORDINSDM\DENSBON.DOC Ordinance No. Code Amendment No. 266 Density Bonuses May 21, 1996 - Page 2 6. Implementing Action 5.6 of the Housing Element states that "the City currently has a senior housing density bonus ordinance and will develop a separate ordinance for non -senior housing projects with an affordable component in compliance with the State Density Bonus Law." 7. The facts above identify a definite need for the production of new housing to meet the needs of lower -income and senior citizen households, to which the City has established a commitment to address these needs. 8. The proposed ordinance will establish a mechanism for the granting of density bonuses and other incentives that will provide a valuable tool for the production of needed housing. 9. The proposed ordinance makes provisions to consider granting density bonuses in excess of those mandated by State law in order to allow the construction of sound, high quality housing that is economically viable. 10. The proposed ordinance incorporates measures that will ensure that the housing produced will be of high quality design and will be compatible with surrounding neighborhoods such that the housing, in addition to meeting lower -income housing needs, will also be an asset to the appearance and well-being .of the community. 11. An initial study prepared for the subject project has disclosed that the proposed project could not have an significant effect on the environment. A Negative Declaration of Environmental Impact has been prepared for the proposed project pursuant to the requirements of the California Environmental Quality Act of 1970, as amended. NOW, THEREFORE, the City Council of the City of West Covina does hereby ordain as follows: SECTION NO. 1: Based on the evidence presented and the findings set forth, Code Amendment No. 266 is hereby found to be consistent with the West Covina General Plan and the implementation thereof. SECTION NO. 2: Based on the evidence presented and the findings set forth, the City Council of the City of West Covina hereby amends Chapter 26 (Zoning) of the City of West Covina Municipal Code by deleting Sections 26-679 through 26-682.5 in their entirety and adding Sections 26-676 through 26-682 to read as follows: CHAPTER 26. ZONING ARTICLE XII. SPECIAL REGULATIONS FOR UNIQUE USES DIVISION 6. LOW- AND MODERATE -INCOME AND SENIOR CITIZEN HOUSING Sec.26-676. Purpose. The purpose of this division is to provide incentives for the production of sound and affordable housing for very low- and lower -income and senior citizen households, and also emphasize opportunities for the production of for -sale housing. It is the further purpose of this division to implement the provisions of Sections 65915 and 65917 of the California Government Code, and to assist in achieving the goals and implementing the policies of the Housing Element of the General Plan and Comprehensive Housing Assistance Strategy. Z\CC\ORDINSDM\DENSBON.DOC Ordinance No. Code Amendment No. 266 Density Bonuses May 21, 1996 - Page 3 Sec.26-677. Definitions. (a) Affordable housing costs shall mean monthly housing expenses expressed as a proportion of gross monthly income that can be reasonably allocated for this purpose. Housing costs for rental dwelling units shall include (1) monthly rent, and (2) a reasonable allowance for utilities. Housing costs for "for -sale" dwelling units shall include the sum of the actual or projected monthly payments for (1) principal and interest on a mortgage loan, including any loan insurance fees, (2) property taxes and assessments, (3) fire and casualty insurance, (4) property maintenance and repairs, (5) homeowners association fees (if any), and (6) a reasonable allowance for utilities. For households of the following income levels, affordable housing costs shall not exceed the following limits: (1) Very low-income households: 50 percent of the area median income for Los Angeles County, adjusted for household size, multiplied by 0.3 (30 percent) and divided by 12. (2) Lower -income households: 60 percent of the area median income for Los Angeles County, adjusted for household size, multiplied by 0.3 (30 percent) and divided by 12. (b) Affordable sales price shall mean a sales price at which very low- income and lower -income households can qualify for the purchase of target units, calculated on the basis of underwriting standards of mortgage financing available for the housing development. (c) Density bonus shall mean an ' increase over the otherwise maximum allowable residential density as established under the existing or proposed multiple -family residential zoning designation and General Plan land use designation. (d) Density bonus, mandatory shall mean a density bonus of 25 percent that must be granted in exchange for the production of certain levels of target units as required under Government Code Section 65915(b), as it presently exists or may hereafter be amended and/or recodified, and as provided for in Section 26-678.1 of this division. At the City's discretion, other incentives of equivalent financial value may be granted as an alternative to a mandatory density bonus. (e) Density bonus, discretionary shall mean a density bonus that may be granted at the City's discretion in excess of a mandatory density bonus for housing developments exceeding the thresholds for target units for a mandatory density bonus. (f) Density bonus housing agreement shall mean a legally binding agreement between a developer and the City of West Covina and/or the City of West Covina Redevelopment Agency to ensure that the requirements of this division are satisfied. The agreement, among other things, shall establish (1) the number, size, and location of target units, (2) terms and conditions of affordability, and (3) production schedule. (g) Equivalent financial incentive shall mean a monetary contribution and/or other regulatory concession(s) based upon land cost per dwelling unit and equivalent to one of the following: (1) A 25 percent density bonus and an additional incentive(s), or Z\CC\ORDINSDM\DENSBON.DOC Ordinance No. Code Amendment No. 266 Density Bonuses May 21, 1996 - Page 4 (2) A 25 percent density bonus, where an additional incentive(s) is not requested or is determined to be unnecessary. (h) Housing development shall mean one or more groups of projects for the construction of owner- or renter -occupied dwelling . units (not including congregate housing units, boarding or lodging houses, etc.) cumulatively consisting of five (5) or more dwelling units. (i) Household, very low-income shall mean a household whose income does not exceed the, limit established for very low-income households applicable to Los Angeles County as adjusted for household size, as published and periodically updated by the State Department of Housing and Community Development pursuant to Section 50105 of the California Health and Safety Code. 0) Household, lower -income shall mean a household whose income does not exceed the limit established for lower -income households applicable to Los Angeles County as adjusted for household size, as published and periodically updated by the State Department of Housing and Community Development pursuant to Section 50079.5 of the California Health and Safety Code. (k) Incentives shall mean regulatory concessions including, but not necessarily limited to, the modification of site development standards or zoning code requirements, the modification of otherwise required public works improvements or other on -site or off -site physical improvements, and/or direct financial assistance that would result in identifiable cost avoidances or reductions. (1) Incentives, additional shall mean incentives granted in addition to the incentives required to be granted pursuant to Government Code Section 65915(b). (m) Non -restricted units shall mean those dwelling units within a housing development exclusive of target units. (n) _Qualifying resident shall mean senior citizens or other persons eligible to reside in senior citizen housing. In conjunction with senior citizen housing developments consisting of 150 or more dwelling units, senior citizen shall be defined as persons age 55 years or older. In conjunction with senior citizen housing developments consisting of less than 150 dwelling units, senior citizen shall be defined as persons age 62 years or older. (o) Senior citizen housing shall mean a housing development consistent with the California Fair Employment and Housing Act (Government Code Section 12900 et. seq., including 12955.9 in particular), which has been "designed to meet the physical and social needs of senior citizens," and which otherwise qualifies as "housing for older persons" as that phrase is used in the Federal Fair Housing Amendments Act (42 U.S.C. 3607(b)) and implementing regulations and as that phrase is used in California Civil Code Section 51.2 and 51.3. (p) Target units shall mean those dwelling units within a housing development that are produced in exchange for a density bonus and/or other incentives, including dwelling units that will be reserved for sale or rent to very low-income households, lower -income households, and/or or qualifying residents pursuant to the terms of a density bonus housing agreement. Z\CC\ORDINSDM\DENSBON. DOC Ordinance No. Code Amendment No. 266 Density Bonuses May 21, 1996 - Page 5 Sec. 26-678. Density bonuses, modification of development standards, and other incentives. (a) Housing developments shall be eligible to be granted density bonuses and/or incentives as set forth in Sections 26-678 through 26-678.4. (b) Calculation of density bonuses. Density bonuses, whether mandatory or discretionary, shall be determined by multiplying the maximum number of dwelling units that are permitted to be developed under the applicable zoning and General Plan land use designation by the percent of the density bonus, rounding off any fractions to the next higher whole number. Sec 26-678.1. Mandatory density bonuses. (a) A density bonus of 25 percent above the otherwise allowable density shall be granted to housing developments that agree to provide the following housing, provided said housing developments comply with all other applicable provisions of this division: (1) At least ten (10) percent of the total dwelling units (exclusive of additional density bonus units) shall be reserved for and affordable to very low-income households; or (2) At least twenty (20) percent of the total dwelling units (exclusive of additional density bonus units) shall be reserved for and affordable to lower -income households; or (3) At least fifty (50) percent of the total dwelling units (exclusive of additional density bonus units) shall be reserved for qualifying residents (senior citizens) within a housing development that meets the qualifications for senior citizen housing as defined under Section 26-677(o). (b) In cases where the developer agrees to construct more than 10 percent of the total units for very low-income households, and/or more than 20 percent of the total units for lower -income households, the developer shall not be entitled to a density bonus in excess of 25 percent. In such cases, however, the developer may apply for the granting of a greater discretionary density bonus as set forth in Section 26-678.2. (c) As an alternative to granting a mandatory density bonus to a qualifying housing development, the City may grant other incentives, or a combination of a lesser density bonus and other incentives,that are of equivalent financial value based on land cost per dwelling unit. Sec 26-678.2. Discretionary density bonuses. (a) Intent. In providing opportunities for the granting of density bonuses in excess of those specified in Section 26-678.1, it is the City's intent to be of further meaningful assistance to promoting the development of housing to meet the diverse housing needs of the community. This notwithstanding, proposals for discretionary density bonuses shall be carefully reviewed and considered and may only be granted where standards set forth under Subsection (b) have been determined to be met. (b) Determination of discretionary density bonuses. Rather than utilizing a specific formula, the determination of whether and at what level to grant a discretionary density bonus shall be based on a case -by -case evaluation Z\CC\ORDINSDM\DENSBON.DOC Ordinance No. Code Amendment No. 266 Density Bonuses May 21, 1996 - Page 6 of proposed housing developments. The factors to be considered in this evaluation shall include, but are not limited to: (1) The type and extent of target units being proposed. (2) That the density bonus is necessary to make the project economically feasible. (3) That the proposed housing will help fulfill the housing needs of the community as established within the Housing Element of the General Plan. (4) That the housing development reflects high standards in the quality of design and provision of amenities. (5) That the proposed housing development is compatible with the surrounding neighborhood. (c) A density bonus of greater than 25 percent above the otherwise allowable density, but in no case greater than 100 percent, may be granted at the City's discretion to applicants that agree to provide the following types of housing, provided said housing developments comply with all other provisions of this division. (1) Greater than 10 percent of the total dwelling units reserved for and .affordable to very low-income households; or (2) Greater than 20 percent of total dwelling units reserved for and affordable to lower -income households; or (3) Greater than 50 percent of the total dwelling units reserved for qualifying residents (senior citizens); or (4) Any combination of dwelling units reserved for and affordable to very low-income households, reserved for and affordable to lower -income households, and/or reserved for qualified residents meeting or exceeding the minimum percentages specified in Section 26-678.1. Sec. 26-678.3. Incentives. (a) A housing development eligible to be granted a mandatory density bonus pursuant to Section 26-678.1 shall, ,in addition to the density bonus, be granted at least one incentive. An applicant may request that a specific type of incentive be granted; however, the final determination shall be made by the Planning Commission. Such additional incentive, however, shall not be required to be granted if the Planning Commission makes a written finding that such additional incentive is not necessary in order to provide for affordable housing costs as defined in Section 50052.5 of the Health and Safety Code. (b) In addition to the provisions of Subsection (a), housing developments that are eligible to be granted a density bonus pursuant to Section 26-678.1 or 26-678.2 may be granted additional incentives on a discretionary basis. Additional incentives may only be granted to the extent determined necessary to render a housing development economically feasible. Incentives that involve modifications to otherwise established architectural, building, or engineering standards may only be granted when it has been determined that such modifications (1) will not substantially compromise the proper utilization and Z\CC\ORDINSDM\DENSBON. DOC Ordinance No. Code Amendment No. 266 Density Bonuses May 21, 1996 - Page 7 functioning of the site for residential purposes; and (2) will not have an adverse impact on surrounding properties. (c) Incentives may include, but shall not necessarily be limited to the following: (1) Modification of number of required parking spaces. (2) Modification of minimum unit sizes. (3) Modification of minimum setbacks. (4) Modification of architectural design requirements that exceed the minimum building standards approved by the State Building Standards Commission as provided in Part 2.5 (commencing with Section 18901) of Division 13 of the Health and Safety Code. (5) Modification of requirements for public works improvements or other on -site or off -site physical improvements. (6) Expedited case processing, (7) Waiver or reduction of fees for processing entitlement permits , and/or preparation of environmental review documents. (8) Direct financial assistance. Sec 26-678.4. Specific incentives for senior citizen housing. Housing developments that incorporate dwelling units reserved for lower - income senior citizen households shall be specifically eligible to be granted the types of modifications to development standards listed below, subject to review and approval by the Planning Commission and/or City Council. (a) Modification of parking standards. The otherwise required number of parking spaces may be reduced based upon an evaluation of the parking demands expected to be generated.by a proposed housing development. It shall be the responsibility of the developer to provide sufficient information to the City to substantiate a reduced parking demand and justify the proposed parking reduction. Such information may include recent parking studies and surveys, and examples of parking demand generated within other similar housing developments. The determination of the extent of parking reduction to be granted shall take into consideration the following factors; however, in no case shall the parking be reduced to a ratio of less than 0.75 spaces per dwelling unit. (1) The proportion of dwelling units reserved for lower -income households. (2) The size of dwelling units (i.e. number of bedrooms). (3) The proposed minimum age limit for residents (i.e. 55 years or 62 years). (4) The length of use and affordability restrictions proposed. (5) The proximity of the housing development to established transit routes and facilities, and the availability of other privately -provided transit services. Z\CC\ORDINSDM\DENSBON. DOC • • Ordinance No. Code Amendment No. 266 Density Bonuses May 21, 1996 - Page 8 (6) The proximity of the housing development to necessary retail and service commercial facilities. (7) The availability and convenience of on -street parking adjacent to the housing development. (8) Proposed restrictions, if any, to limit the number of vehicles that may be maintained on the site per household. (b) Modification of Minimum Dwelling Unit Size. The otherwise required minimum dwelling unit sizes may be reduced, but in no case shall they be reduced to less than the following standards: (i) Studio unit (ii) One bedroom (iii) Two bedrooms 500 square feet 575-square feet 650 square feet The determination of.the reduced unit sizes shall take into consideration the following factors: (1) The overall efficiency of proposed floor plans. (2) The availability and size of private and common open space, and other on -site recreational and community facilities. Sec. 26-678.5. Modification of development standards as incentives. Notwithstanding the provisions of Division 4, Article VI, of this Chapter (Variances and Slight Modifications), incentives that entail modifications of development standards established under this chapter (Zoning) may be granted by the Planning Commission as a part of the required conditional use permit process. Sec 26-679. Application procedures. (a) Housing developments that include dwelling units utilizing the density bonus and/or incentive provisions of this division may only be permitted subject to the granting of a conditional use permit pursuant to the provisions of Sections 26-246 through 26-260 of this chapter. (b) Applications for a conditional use permit for a density bonus and/or other incentives shall provide the following information in addition to other information otherwise required: (1) The total number of dwelling units proposed. (2) The total number of target units and the proposod location of such units within the development. (3) The density bonus and other incentive(s) being requested. (4) Such financial information as may be required by the Planning Director so that a determination can be made regarding alternative incentives of equivalent financial value to the mandatory density bonus, and/or the need for a discretionary density bonus and additional incentives, if requested. Z\CC\ORDINSDM\DENSBON.DOC Ordinance No. Code Amendment No. 266 Density Bonuses May 21, 1996 - Page 9 (5) A draft agreement approved in concept by the City Attorney, suitable for recording as a covenant running with the land or equitable servitude and binding upon all subsequent successors in interest of the developer, pursuant to the provisions of Section 26-682. (6) At least three examples of the market rental rates or sales prices of dwelling units of comparable size and type within the market area of the subject property, as determined by the City. (c) Prior to submitting an application for a conditional use permit as set forth below, an applicant may submit a preliminary proposal for a housing development requesting the granting of a density bonus and/or other incentive(s) pursuant to this division. Such proposals shall, at a minimum, include the following information: (1) A brief description of the proposed housing development, including the total number of units, target units, density bonus units proposed, and any incentives being requested.. (2) A vicinity map and preliminary site plan, drawn to scale, including building footprints, driveway, and parking layout. (3) If a discretionary density bonus and/or additional incentive(s) are being requested pursuant to Sections 26-678.2, 26-678.3, and 26-678.4, the application should describe why the discretionary density bonus and/or additional incentive(s) are necessary. (d) Within 90 days of receipt of a preliminary proposal, the City shall provide an applicant with a letter that identifies the procedures that the City will utilize to apply the provisions of this division to the proposed housing development. To the extent feasible and practicable, such letter shall also identify any issues of concern regarding the proposed project and its design, and the extent of density bonus and other incentive(s) that the Planning Department can support. If other incentive(s) requested by the applicant cannot be supported by the Planning Department, such letter may include alternative or modified incentive(s) that may be supported in lieu of the requested incentive(s), and how such alternative or modified incentive(s) can be expected to have an equivalent affordability effect as the requested incentive(s). If direct financial assistance is requested, such letter shall also, to the extent feasible and practicable, identify the amount of direct financial assistance that the responsible City department can support. The information contained in such letter shall be advisory only, and shall in no way constitute a binding commitment on behalf of the City. Sec. 26-680. Development and design standards. In addition to all other applicable standards and provisions of this chapter, housing developments approved under the provisions of this division shall be required to adhere to the following standards: (a) For housing developments that include both target units and non- restricted units, the target units shall be generally dispersed throughout the development and shall not differ substantially in appearance, size, and amenities from other units in the development. rAl Z\CC\ORDINSDM\DENSBON.DOC Ordinance No. Code Amendment No. 266 Density Bonuses May 21, 1996 - Page 10 (b) Target units shall be constructed concurrently with non -restricted units unless both the City and the developer/applicant agree within the density bonus housing agreement to an alternative schedule for development. (c) The project shall be designed to be complimentary to the character of the residential neighborhood in which it is located, and convey a sense of multiple building volumes with articulating design elements. (d) Adequate private outdoor living space and public open space shall be incorporated into the project. Sec. 26-681. Standards and criteria. Housing developments approved pursuant to this division, in addition to all other applicable requirements, shall meet the following standards and criteria: (a) Target units shall remain affordable to the designated group(s) for a minimum period of 30 years (or a longer period of time if required by the construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy program), under the following circumstances: (1) Both a mandatory density bonus and an additional incentive(s) is granted; or (2) An equivalent financial incentive equivalent to a mandatory density bonus and an additional incentive(s) is granted. (b) Target units shall remain restricted and affordable to the designated group(s) for a minimum period of ten (10) years under the 'following circumstances: (1) Only a mandatory density bonus is granted and no additional incentives are granted; or (2) A financial incentive equivalent to only a mandatory density bonus is granted. (c) In cases where density bonuses and/or incentives are granted in excess of the levels specified in Subsections (a) or (b), the City may require that target units remain restricted and affordable to the designated group(s) for a longer period of years than specified in Subsections (a) or (b). (d) In determining the maximum affordable housing costs or affordable sales price of target units, the following household and unit size assumptions shall be used unless the housing development is subject to different assumptions imposed by other governmental regulations: Unit Size Household Size Studio unit 1 person 1 bedroom 2 persons 2 bedrooms 3 persons 3 bedrooms 4 persons 4 bedrooms 6 persons (e) To the extent allowed by law, target units shall be marketed so as to provide priority consideration to families that reside in the City of West Covina. Z\CC\ORDINSDM\DENSBON.DOC Ordinance No. Code Amendment No. 266 Density Bonuses May 21, 1996 - Page 11 Sec. 26-682. Density bonus housing agreement. (a) Applicants requesting a density bonus shall draft and agree to enter into a density bonus housing agreement with the City. The terms of the draft agreement shall be reviewed and revised as appropriate by the Planning Director, who shall formulate a recommendation to the Planning Commission for final approval. The agreement shall be recorded as a restriction on the parcel or parcels on which the target units will be constructed. (b) Following execution of the agreement by all parties, the completed density bonus housing agreement, or memorandum thereof, shall be recorded and the conditions therefrom filed and recorded on the parcel or parcels designated for the construction of target units. The approval and recordation shall- take place prior to final map approval, or, where a map is not processed, prior to the issuance of building permits for such parcels or units. The density bonus housing. agreement shall be binding to all future owners and successors in interest. (c) The density bonus housing agreement shall include at least the following: (1) The total number of units approved for the housing development, including the number of target units. (2) A description of the household income group(s) to be accommodated by the housing development and the standards determining the corresponding affordable rent or affordable sales price and housing cost. (3) The location, unit sizes (square feet), and number of bedrooms of target units. (4) Tenure of use and affordability restrictions for target units of at least 10 or 30 years or as otherwise required pursuant to Section 26-681. (5) A schedule for completion and occupancy of target units. (6) A description of the additional incentive(s) or equivalent financial incentives being provided by the City. (7) A description of the measures to be employed to provide priority consideration for the sale or rental of target units to families that reside in the City of West Covina. (8) A management plan, including security provisions, housing ground rules, tenant selection criteria, and provisions for the on- going maintenance and repair of (1) dwelling units (rental units only), (2) common landscaping and open space areas, (3) parking facilities, and (4) common recreational and community facilities. (9) A description of remedies for breach of the agreement by either party (the City may identify tenants or qualified purchasers as third party beneficiaries under the agreement). (10) Other provisions to ensure implementation and compliance with this division. Z\CC\ORDINSDM\DENSBON.DOC Ordinance No. Code Amendment No. 266 Density Bonuses May 21, 1996 - Page 12 (d) In the case of for -sale, housing developments, the density bonus housing agreement shall provide for the following conditions governing the initial sale and use of target units during the applicable use restriction period: - (1) Target units.shall, upon initial sale, be sold to eligible very low - or lower -income households at an affordable sales price and housing cost, or to qualified residents (i.e., maintained as senior citizen housing) as defined in the case of senior citizen housing. (2) Target units shall be initially owner -occupied by eligible very low- or lower -income households, or by qualified residents in the case of senior citizen housing. (3) The initial purchaser of each target unit shall execute an instrument or agreement approved by the City restricting the sale of the target units in accordance with this ordinance during the applicable use restriction period. Such instrument or agreement shall be recorded against the parcel containing the target unit and shall contain such provisions as the City may require to ensure continued compliance with this ordinance and the State Density Bonus Law. (e) In the case of rental housing developments, the density bonus housing agreement shall provide for the following conditions governing the use of target units during the use restriction period: (1) The rules and procedures for qualifying tenants, establishing affordable rent, filling vacancies, and maintaining target units for qualified tenants; (2) Provisions requiring owners to verify tenant incomes and maintain books and records to demonstrate compliance with this division. (3) Provisions requiring owners to submit an annual report to the City, which includes the name, address, and income of each person occupying target units, and which identifies the bedroom size and monthly rent or cost of each target unit. SECTION 3: A Negative Declaration of Environmental Impact has been prepared in accordance with the California Environmental Quality Act of 1970, as amended. SECTION 4: The City Clerk shall certify to the passage of this Ordinance and shall cause the same to be published as required by law. Z\CC\ORDINSDM\DENSBON.DOC • Ordinance No. 1973 Code Amendment No. 266 Density Bonuses May 21, 1996 - Page 13 PASSED AND APPROVED on this 4th day of June1996. Mayor ATTEST: City Clerk STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) CITY OF WEST COVINA ) I, Janet Berry, City Clerk of the City of West Covina, do hereby certify that the foregoing Ordinance No. 7973 was regularly introduced and placed upon its first reading at, a regular meeting of the City Council 21 st day of May, 1996. That, thereafter, said Ordinance was duly adopted and passed at a regular meeting of the City Council on the 4th day of June , 1996. AYES: Herfert, McFadden, Wong, Touhey NOES: None ABSENT: Manners. APPROVED AS TO FORM: City Attorney 4� zazzz�� City Clef Z\CC\ORDINSDM\DENSBON.DOC