The City of Tracy Planning Commission on Dec. 3 recommended the City Council repeal and readopt Article 36.5 (the citys density bonus ordinance) to bring the municipal code into alignment with recent California density‑bonus law updates. The motion, which a majority approved following staffs presentation, forwards the ordinance and CEQA exemption recommendation to the council.

Staff told commissioners the existing density bonus section dated from 2008 and requires updates including new state definitions, a table format for bonus units, and expanded incentive tiers. "The density bonus section . . . provides incentives for the production of housing for very low income, low income, and senior households," staff said, adding that some bonus levels now extend up to 50 percent under current state rules.

Commissioners asked whether developers have used the bonus in Tracy. Staff said density bonus applications have been rare over the past 15–20 years and that the projects that do arise, especially 100 percent affordable projects, typically require grant funding. "The opportunity's here, but it's not often taken advantage of because of challenges," staff said.

Several commissioners sought clarity about whether the tables and percentages were local choices. Staff repeatedly said the numbers come from state law and the ordinance adopts those tables into local code rather than inventing new percentages. The update is also an implementation action of the 2023–2031 housing element, staff said.

The commission voted to recommend the City Council determine the ordinance exempt under CEQA (referencing the common‑sense/ministerial exemptions discussed in the staff report) and adopt the ordinance to repeal and readopt Article 36.5. The recommendation will be considered by the City Council at a future meeting.

What happens next: The commissions recommendation and the staff CEQA finding are forwarded to the City Council for public hearing and final action.