PLACENTIA : Low-Income Housing Incentives Approved

The City Council on Tuesday passed an amendment allowing the city to offer a density bonus and other incentives to developers who designate a portion of their projects for low-income or elderly buyers or renters.

Density bonuses would allow developers to build 25% more homes per acre than allowed under the city’s zoning ordinances. Current zoning regulations permit eight to 25 units per acre.

In addition to increasing the number of units allowed in qualifying projects, the city will offer an additional incentive if a developer can prove that the density bonus alone does not make a project financially feasible. The added incentive could entail a further density bonus, financial breaks or relaxing of development standards.

To qualify for density bonuses and other incentives, developers must agree to provide 10% of the units for very low-income households, defined as those earning 50% or less of the county’s median income; 20% for low-income households, where the average earnings are 80% or less of median income; or 50% of the units for senior citizens.

The council’s action brings the city in compliance with the California Government Code, which requires such incentives. Joyce R. Rosenthal, director of development services, said the state has not specified what the penalties are for cities that refuse to offer density bonuses.

Councilwoman Maria Moreno praised the state’s efforts to encourage more affordable housing.

“We’re not just talking about the homeless,” who might be helped by this, Moreno said. “There are people getting laid off who can’t afford their homes anymore.”