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Housing Laws Governing Review of Development Proposals March 7, 2024 Page 4 of 5 In the current application, an incentive requested was reduction in minimum lot area. See Table 2. Incentive and Waiver Request of the Feb. 28 agenda report, page 6. To deny an incentive, the state has set specific criteria 9 that a city must find, based on substantial evidence, that the requested incentive: (1) Does not result in identifiable and actual cost savings to the project to provide for the affordable housing costs; or (2) Would have a specific adverse impact on public health, safety or welfare, and there is no feasible method to satisfactorily mitigate the specific adverse impact without making the project unaffordable to the affordable households; or (a) with a “specific, adverse impact” defined as a significant, quantifiable, direct, and unavoidable impact, based on objective, identified written public health or safety standards, policies, or conditions as they existed on the date the application was deemed complete. And inconsistency with the zoning ordinance or general plan land use designation shall not constitute a specific, adverse impact upon the public health or safety.10 (3) Would be contrary to state or federal law.11 For the current proposal, the requested incentive is to reduce minimum lot area. Evaluating these three criteria: (1) Cost savings. Smaller lots logically mean that more units can fit in less space, and developer needs to buy less expensive real estate, resulting in a cost savings. (2) Public health and safety. The smaller lots still meet fire access requirements and other safety standards. (3) State or federal law violated. No state or federal laws are violated by lots smaller than the city standard. Density Bonus Law Waivers or Reductions of Development Standards. In addition to incentives, an applicant can also request waivers or reductions of development standards. Similar to incentives, the city can only deny the requested waiver if it finds, based on substantial evidence, that the waiver would have a specific adverse impact on public health or safety and there is no feasible method to satisfactorily mitigate the specific impact, or is contrary to state or federal law.12 Density Bonus Law does not cap the number of waivers that an applicant may request. Some members of the public articulated concerns about loss of backyard privacy since among the waivers requested include reduced setbacks, and building heights above the current height limits. However, “a height limitation, a setback requirement” are the first two development standards listed in Density Bonus Law as being subject to reduction by incentives and waivers. 9 §65915.5(d)(1). 10 §65589.5(d)(2). 11 §65915(d)(1). Another reason for denying an incentive is when the property is listed on the California Register of Historic Resources. 12 §65915(e)(1).and §65589.5(d)(2).