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Chapter 17.38 indicates that a project with five or more units may request and be eligible for one density bonus and one or more incentives or concessions if a certain percentage of units are allocated to very low-income, low-income, senior housing, or a certain percentage of for -sale units are dedicated to moderate -income households. The ordinance also specifies development concessions: a 20 percent reduction in one of the setbacks or a 10 percent reduction in minimum lot sizes and/or dimensions does not require a financial report. Types of concessions that do require a financial report include: more than a 20 percent reduction in one of the setbacks or more than a 10 percent reduction in minimum lot sizes and/or dimensions; approval of mixed-use zoning, off-site construction of target units (affordable unit at specified affordability level), fee waiver or deferral, or another concession proposed by the developer or the city which result in identifiable, financially sufficient, and actual cost reductions. As noted, Government Code Section 65915 addresses state density bonus requirements. Since 2013, the scope of the State HDB program has been greatly modified and expanded, and today offers an array of incentives to developers who include various proportions and types of affordable units in residential and mixed use development projects. State law incentives include not only density bonuses (an increment of units over and above that specified in local zoning), but also the ability to request waivers and concessions (modifications or relief from) a broad array of local development standards. Provided that specified requirements are met, the City must generally approve both requested bonuses and concessions. Given the numerous amendments that have been adopted to the State housing density bonus law since 2012, at this time, the City's local Density Bonus Ordinance does not appear to align well with State law and is in need of significant update. DISCUSSION The purpose of this and the future meeting with the Planning Commission is to seek recommendations on additional or modified policies in the Housing Element related to specific policy topics. This meeting specifically includes LIHF, the IZO, and other City housing -related programs for the Planning Commission's consideration. A future meeting will focus on policy topics including workforce housing and "affordability by design." As mentioned in this report, the policies and programs in the Housing Element are subject to review by HCD and will be subject to ongoing monitoring and future progress reports provided annually to HCD. Thus, the City should identify only actions and programs for which meaningful progress can be made during the eight-year Housing Element period. Amount of the Lower -Income Housing Fee The City has adopted the LIHF based on the parameters established by AB 1600, including that the City demonstrate the fee will be used and applied with a reasonable relationship between both the fee's use and the need for the public improvement and type of development on which the fee is imposed. If the City were to modify it (beyond the update in 2018), the new fee should also be established within these parameters — i.e. not exceed the maximum fee levels identified in the study. If modified beyond this level, the City should update the extensive nexus study completed in 2018, including an analysis of the fees compared to surrounding jurisdictions, impacts of new development, and costs to mitigate new housing demand. Housing Element Update, P21-0751 Planning Commission 7 of 13