Affordable Housing and Parking 2

More info on Parking near Shiloh Terrace.

Here’s a comprehensive breakdown of the exceptions and incentives that affordable housing developers can get — using Shiloh Terrace as a real-world example:

Exceptions & Incentives Affordable Housing Developers Get in California

What Happened at Shiloh Terrace (Windsor)

The Discover Windsor project page explicitly notes: “Due to the affordable housing development incentives, the site will eliminate required commercial space and reduce its required open space and parking.” The project got 134 units on 4.39 acres with only 140 parking stalls — that’s about 1.04 spaces per unit, well below what standard zoning would normally require for 2- and 3-bedroom units.

The Main Categories of Exceptions

1. Parking Reductions Under California Density Bonus Law (Gov. Code §65915(p)), cities cannot require more than these maximum ratios for qualifying affordable projects:

  • 0–1 bedroom units: 1 space
  • 2–3 bedroom units: 2 spaces
  • 4+ bedrooms: 2.5 spaces

And the parking can be tandem or uncovered (cheaper to build). Projects near transit (within ½ mile of a major stop) can get even further reductions. Requesting reduced parking doesn’t even count as using one of your limited “incentive” slots.

2. Density Bonus (More Units Than Zoning Would Allow)

  • Projects with 10%+ of units for low-income households get a density bonus
  • Up to 50% more units than base zoning for most affordable projects
  • Up to 80% more units if 100% of units are affordable
  • Unlimited density for 100% affordable projects within ½ mile of a major transit stop

3. Development Standard Waivers (Unlimited) Developers can waive any local standard that would physically prevent building at the permitted density. Common waivers include:

  • Height limits — go taller than zoning allows
  • Setback requirements — build closer to property lines
  • Open space requirements — reduce required landscaping or common area (as Shiloh Terrace did)
  • Lot coverage limits — cover more of the site with buildings
  • Floor-area-ratio (FAR) limits — build more square footage than base zoning allows

There is no limit on the number of waivers a developer can request, and the burden of proof is on the city to deny them — not on the developer to justify them.

4. Incentives/Concessions (Finite Number, But Broad) These are the “counted” incentives (1–3 depending on affordability level). Examples include:

  • Reduced setbacks — a specific numeric reduction rather than a full waiver
  • Mixed-use allowance — allowing commercial to be eliminated (as at Shiloh Terrace) where zoning requires it
  • Reduced private storage or loading areas — eliminating truck loading docks, storage requirements
  • Increased building height beyond what waivers would cover
  • Reduced landscaping ratios
  • Reduced unit size minimums

5. Development Impact Fee Waivers or Deferrals Cities can (and often do as part of development agreements) waive impact fees on affordable units entirely, or defer fees on market-rate units until Certificate of Occupancy. These fees can be substantial — covering parks, transportation, schools, utilities — sometimes $20,000–$50,000+ per unit.

6. Elimination of Required Commercial Space Mixed-use zones often require ground-floor retail or commercial. Affordable projects can get this eliminated as an incentive (explicitly what happened at Shiloh Terrace), saving significant construction cost and ongoing management complexity.

7. Financing Subsidies (Not Zoning, But Common) Shiloh Terrace also received:

  • 4% federal Low-Income Housing Tax Credits (LIHTC)
  • State LIHTC
  • Tax-Exempt Bond financing
  • $3.9 million from CalHFA’s Mixed-Income Program