Eligibility for Bonus, Incentives, or Concessions
Santa Clara City Code § 18.64.020
in effectTo be eligible for a density bonus, reduced parking ratios, and other incentives or concessions as provided by this Chapter, a proposed housing development shall comply with the following requirements and shall satisfy all other applicable provisions of this Zoning Code.
A. Resident Requirements. Excluding any units allowed by the density bonus, the proposed housing development’s dwelling units, as defined in Health and Safety Code Section 50079.5, shall be one of the following types;
1. Lower Income Households. Ten percent of the dwelling units are for lower income households, as defined in Health and Safety Code Section 50079.5;
2. Very Low-Income Households. Five percent of the dwelling units are for very low-income households, as defined in Health and Safety Code Section 50105;
3. Senior Citizen Housing Developments. The project is a senior citizen housing development as defined in Civil Code Sections 51.3 and 51.12, or is a mobile home park that limits residency based on age requirements for housing older persons in compliance with Civil Code Sections 798.76 or 799.5;
4. Moderate Income Households in a For-Sale Development. Ten percent of the dwelling units in a for-sale development are for persons and families of moderate income, as defined in Health and Safety Code Section 50093, provided that all units in the development are offered to the public for purchase;
5. Other Identifiable Groups. Ten percent of the dwelling units in a housing development for transitional foster youth, as defined in Education Code Section 66025.9; disabled veterans, as defined in Government Code Section 18541; or, homeless persons, as defined in the Federal McKinney-Vento Homeless Assistance Act (42 U.S.C. Sec. 11301 et seq.). The dwelling units described in this Paragraph shall be provided to very low-income households, as defined in Health and Safety Code Section 50105;
6. Student Housing. Twenty percent of the dwelling units are for lower income students in a student housing development, subject to the provisions specified in Subsection 18.64.030.A.6 (Bonus for Student Housing Development), below, and which meets the following requirements:
a. All units in the student housing development will be used exclusively for undergraduate, graduate, or professional students who are currently enrolled in at least six credit-hours, or who within the past six months were enrolled in at least six credit-hours, at an institution of higher education accredited by the Western Association of Schools and Colleges or the Accrediting Commission for Community and Junior Colleges. In order to be eligible under this Subparagraph, the developer shall, as a condition of receiving a Certificate of Occupancy, provide evidence to the City that the developer has done either of the following:
(b) entered into an operating agreement or master lease with one or more institutions of higher education for the institution(s) to occupy all units of the student housing development with students or recent former students from such institution(s). Such an operating agreement or master lease is not violated or breached if, in any subsequent year, there are not sufficient students enrolled or previously enrolled in an institution of higher education to fill all units in the student housing development; or
(c) Established a system for confirming its renters' status as students to ensure that all units of the student housing development are occupied with students from an institution of higher education.
b. The applicable units in the student housing development for lower income students will be used for, and occupied by, lower income students. For purposes of this clause, “lower income students” means students who have a household income and asset level that does not exceed the level for Cal Grant A or Cal Grant B award recipients as specified in subdivision (k) of Section 69432.7 of the Education Code. The eligibility of a student under this subparagraph shall be verified by an affidavit, award letter, or letter of eligibility provided by the institution of higher education that the student is enrolled in, or by the California Student Aid Commission that the student receives or is eligible for financial aid, including an institutional grant or fee waiver, from the college or university, the California Student Aid Commission, or the federal government;
c. The rent provided in the applicable units of the development for lower income students shall be calculated at 30 percent of 65 percent of the area median income for a single-room occupancy unit type.
d. The development will provide priority for the applicable affordable units for lower income students experiencing homelessness. A homeless service provider, as defined in paragraph (3) of subdivision (d) of Section 103577 of the Health and Safety Code, or institution of higher education that has knowledge of a person’s homeless status may verify a person’s status as homeless for purposes of this Subparagraph.
e. No rental bed reserved for lower income students shall be tied to a specific bedroom. No property management policy shall prevent a lower income student from sharing a room or unit with a non-lower income student.
2. 100 Percent Affordable Developments. One hundred percent of the total units, exclusive of a manager’s unit or units, are for lower-income households, as defined by Health and Safety Code Section 50079.5, except that up to 20 percent of the total units in the development may be for moderate-income households, as defined in Health and Safety Code Section 50053. For purposes of this subparagraph, “development” includes a shared housing building development;
3. Condominium Conversions. A conversion of apartments to condominiums, where at least 33 percent of the proposed condominiums will be affordable to persons and families of low or moderate income, or 15 percent of the proposed condominiums will be affordable to lower-income households;
4. Housing with Childcare Facilities. A housing development that includes a childcare facility that meets the requirements set forth in section 18.64.060; or
5. Land Donations. A housing development that will include a land donation to the City meeting the requirements specified in paragraph 12 of subsection A of section 18.64.030.
B. Applicant Selection of Basis for Bonus. For purposes of calculating the amount of the density bonus in compliance with Section 18.64.030 (Allowed Density Bonuses), below, the applicant who requests a density bonus shall elect whether the bonus shall be awarded based on paragraphs 1 through 10 of Subsection A., above.
C. Bonus Units Shall Not Qualify A Project. A density bonus granted in compliance with Section 18.60.030 (Allowed Density Bonuses), below, shall not be included when determining the number of dwelling units that are required by Subsection A., above.
D. Minimum Project Size to Qualify for Density Bonus. The density bonus provided by this Chapter shall be available only to a housing development of five or more dwelling units, including mixed-use developments.
E. Commercial Development. When an applicant for approval of a commercial development has entered into an agreement for partnered housing meeting the requirements of this Subsection E. to contribute affordable housing through a joint project or two separate projects encompassing affordable housing, the Director shall review and approve to the commercial developer a development bonus.
1. Agreement for Partnered Housing. The agreement for partnered housing shall be between the commercial developer and a housing developer, shall identify how the commercial developer will contribute affordable housing, and shall be reviewed and approved by the City.
2. Method of Contributing Housing. Affordable housing may be contributed by the commercial developer in one of the following manners:
a. The commercial developer may directly build the dwelling units.
b. The commercial developer may donate a portion of the commercial development site or property elsewhere within the City limits, to the affordable housing developer for use as a site for affordable housing.
c. The commercial developer may make a cash payment to the affordable housing developer that shall be used towards the costs of constructing the affordable housing project.
3. Affordability Requirements. To qualify for a development bonus under this Section, the commercial developer shall partner with a housing developer that provides at least 30 percent of the dwelling units for low-income households or at least 15 percent of the dwelling units for very low-income households.
4. Location of Affordable Housing. The housing shall be constructed on the site of the commercial development or on a site that is all the following:
a. Within the City limits;
b. Close to public facilities and services, including schools and employment centers; and
d. Within one-half mile of a major transit stop.
5. Type of Development Bonus. The development bonus granted to the commercial developer shall mean incentives, mutually agreed upon by the developer and the City, that may include, but are not limited to, any of the following:
a. Up to a 20 percent increase in maximum allowable intensity as specified in the General Plan.
b. Up to a 20 percent increase in maximum allowable floor area ratio.
c. Up to a 20 percent increase in maximum allowable height requirements.
d. Up to a 20 percent reduction in minimum parking requirements.
e. Use of a limited-use/limited-application elevator for upper floor accessibility.
f. An exception to this Zoning Code or other land use regulation.
6. No Waiver or Reduction of Affordable Housing Fee. A development bonus in compliance with this Section shall not include a reduction or waiver of the requirements specified in Chapter 17.40.
7. Timing of Construction. If the developer of the affordable dwelling units does not commence with construction of those units in compliance with timelines ascribed by the agreement described in Paragraph 1., above, the City may withhold certificates of occupancy for the commercial development under construction until the developer has completed construction of the affordable units.
8. Annual Report to The State. The City shall submit to the Department of Housing and Community Development, as part of the annual report required by Government Code Section 65400, information describing an approved commercial development bonus, including the terms of the agreements between the commercial developer and the affordable housing developer, and the developers and the City, and the number of affordable dwelling units constructed as part of the agreement(s).
F. Shared Housing. A shared housing building, as defined in Government Code Section 65915, which meets the residency requirements of subsection A and the eligibility requirements of Section 18.64.030, qualifies as a housing development subject to this Chapter.
G. Residential Care Facilities for the Elderly. A Residential Care Facility for the Elderly, as defined in Section 1569.2 of the Health and Safety Code, which meets the residency requirements of subsection A and the eligibility requirements of Section 18.64.030, qualifies as a housing development subject to this Chapter.
Source: City of Santa Clara Zoning Code (santaclaraca.gov PDF)URL: https://www.santaclaraca.gov/our-city/departments-a-f/community-development/planning-division/zoningFetched: 10/24/2026