(a) When an applicant for approval of a commercial development has entered into an agreement for partnered housing described in subdivision (c) to contribute affordable housing through a joint project or two separate projects encompassing affordable housing, the city, county, or city and county shall grant to the commercial developer a development bonus as prescribed in subdivision (b). Housing shall be constructed on the site of the commercial development or on a site that is all of the following:

1. (1) Within the boundaries of the local government.
2. (2) In close proximity to public amenities including schools and employment centers.
3. (3) Located within one-half mile of a major transit stop, as defined in subdivision (b) of Section 21155 of the Public Resources Code.

(b) The development bonus granted to the commercial developer shall mean incentives, mutually agreed upon by the developer and the jurisdiction, that may include, but are not limited to, any of the following:

1. (1) Up to a 20-percent increase in maximum allowable intensity in the General Plan.
2. (2) Up to a 20-percent increase in maximum allowable floor area ratio.
3. (3) Up to a 20-percent increase in maximum height requirements.
4. (4) Up to a 20-percent reduction in minimum parking requirements.
5. (5) Use of a limited-use/limited-application elevator for upper floor accessibility.
6. (6) An exception to a zoning ordinance or other land use regulation.

(d) For purposes of this section, affordable housing may be contributed by the commercial developer in one of the following manners:

1. (1) The commercial developer may directly build the units.
2. (2) The commercial developer may donate a portion of the site or property elsewhere to the affordable housing developer for use as a site for affordable housing.
3. (3) 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.