(a) With respect to a housing development project that meets the requirements of subdivision (b), a local agency shall not do any of the following:

1. (1) For a housing development project consisting of three to seven units, impose a floor area ratio standard that is less than 1.0.
2. (2) For a housing development project consisting of 8 to 10 units, impose a floor area ratio standard that is less than 1.25.
3. (3) Deny a housing development project proposed to be developed on an existing legal parcel solely on the basis that the lot area of that existing parcel does not meet the local agency’s requirements for minimum lot size.

(b) To be eligible for the provisions in subdivision (a), a housing development project shall meet all of the following conditions:

1. (1) The project consists of at least 3, but not more than 10, units.

2. (2) The project is located in a multifamily residential zone or a mixed-use zone, as designated by the local agency, and is not located in either of the following:

   1. (A) Within a single-family zone.
   2. (B) Within a historic district or property included on the State Historic Resources Inventory, as defined in Section 5020.1 of the Public Resources Code, or within a site that is designated or listed as a city or county landmark or historic property or district pursuant to a city or county ordinance.
3. (3) The project is located on a legal parcel or parcels located in a city if, and only if, the city boundaries include some portion of either an urbanized area or urban cluster, as designated by the United States Census Bureau, or, for unincorporated areas, a legal parcel or parcels wholly within the boundaries of an urbanized area or urban cluster, as designated by the United States Census Bureau.

(c)

1. (1) This section shall not be construed to prohibit a local agency from imposing any zoning or design standards, including, but not limited to, building height and setbacks, on a housing development project that meets the requirements of subdivision (b), other than zoning or design standards that establish floor area ratios or lot size requirements that expressly conflict with the standards in subdivision (a).
2. (2) Notwithstanding paragraph (1), a local agency may not impose a lot coverage requirement that would physically preclude a housing development project that meets the requirements established in subdivision (b) from achieving the floor area ratio allowed in subdivision (a).

(d) As used in this section:

1. (1) “Housing development project” means a housing development project as defined in paragraph (2) of subdivision (h) of Section 65589.5.
2. (2) “Local agency” means a county, city, or city and county, including a charter city, or city and county.
3. (3) “Unit” means a unit of housing, but shall not include an accessory dwelling unit or a junior accessory dwelling unit.