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May 19, 2026
ITEM TITLE
Waiver of Development Impact Fees: Approve a Waiver of Parkland Fees for a 96-Unit Affordable Rental Housing Project within Otay Ranch Village 2
Report Number: 26-0166
Location: Lot MU-2 within Otay Ranch Village 2 at the Intersection of Santa Victoria Road and Santa Diana Road/Birch Road
Department: Development Services
G.C. § 84308 Regulations Apply: Yes
Environmental Notice: The proposed action is not a project under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15378(b)(4), as it involves a governmental funding mechanism and does not commit the City to a specific physical project.
Recommended Action
Adopt a resolution waiving parkland fees and obligations for a 96 -unit affordable rental housing project within Otay Ranch Village 2.
SUMMARY
The proposed action considers a request to waive 0.80 acres of parkland dedication and $702,912 of parkland development fees for 96-units of affordable rental housing within a 599 -unit mixed-use project (Project) located in Otay Ranch Village 2 (Village 2). The Project includes units restricted to low -income households and is part of a larger Village 2 development containing approximately 4,202 market-rate units.
Pursuant to Chula Vista Municipal Code ( CVMC) Sections 17.10.070(A) and (B), the City Council may, by resolution, waive all or a portion of parkland requirements in the interest of stimulating the construction of housing for low- and moderate-income families. The requested waiver is consistent with this authority and supports the City’s housing production goals.
ENVIRONMENTAL REVIEW
The proposed action is not a project under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15378(b)(4), as it involves a governmental funding me chanism and does not P a g e | 2
commit the City of Chula Vista (“City”) to a specific physical project. Therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable.
DISCUSSION
The developer of Village 2, The Baldwin Company, has requested the waiver of parkland fees associated with 96-units of affordable rental housing within a 599-unit project located within the Village 2 development. The units will be restricted to households meeting low -income criteria pursuant to applicable regulatory agreements.
Village 2 is a master-planned community that includes a mix of residential product types. The overall village is entitled for 4,202 single and multi -family dwelling units, which are subject to applicable parkland dedication and fee requirements under CVMC Chapter 17.10.
Under CVMC Chapter 17.10, residential development is required to:
Dedicate land for park and recreational purposes; and/or Pay in-lieu fees for parkland acquisition and/or park development improvements.
The current parkland obligation for Village 2 consists of the dedication of 36.34 acres of parkland, together with payment of park development fees. Based on the standards established in CVMC Section 17.10.040 the proportional share attributable to the proposed Project is approximately 0.80 acres of parkland dedication and $702,912 in park development fees. The combined estimated value of this obligation, including both land and development components, is approximately $1,606,080.
CVMC Sections 17.10.070(A) and (B) provide that:
The City Council may, by resolution, waive all or any portion of parkland dedication, improvements, or in - lieu fee requirements in the interests of stim ulating the construction of housing for low - and moderate- income families. This authority is discretionary and allows the City Council to consider the broader public benefit associated with affordable housing production.
The requested waiver is supported by the following considerations:
Affordable Housing Production
The project provides 96 deed-restricted affordable units, contributing to the City’s Regional Housing Needs Allocation (RHNA) obligations and housing policy goals. Public Benefit
Affordable hou sing serves a critical public purpose by increasing housing availability for lower - income households, which may otherwise be underserved in the market. Financial Feasibility:
Affordable housing projects typically rely on layered financing (e.g., tax credits, subsidies). Parkland fees can materially affect project feasibility and delivery timelines.
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Proportionality and Nexus Considerations:
The City retains discretion under the Quimby Act (Government Code Section 66477) to reduce or waive requirements where justified by public policy objectives, including affordable housing.
CVMC Section 17.10.070(C) provides an automatic exemption for projects that are 100% affordable. The Project is not a 100% affordable housing development and therefore , is not automatically exempt from parkland dedication and in-lieu fee requirements. The requested action is processed under the discretionary waiver provisions of CVMC Sections 17.10.070(A) and (B) to ensure clear Council direction and documentation.
DECISION-MAKER CONFLICT
Staff has reviewed the property holdings of the City Council members and has found no property holdings within 1,000 feet of the boundaries of the property which is the subject of this action. Consequently, this item does not present a d isqualifying real property-related financial conflict of interest under California Code of Regulations Title 2, Section 18702.2(a)(7) or (8), for purposes of the Political Reform Act (Cal. Gov’t Code §87100, et seq.).
Staff is not independently aware and has not been informed by any City Council member of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter.
CURRENT-YEAR FISCAL IMPACT
There is no current-year fiscal impact to the General Fund or the Developmen t Services Fund as a result of this action . Parkland fees are restricted for the acquisition and development of park and recreational facilities and are not available for general governmental purposes.
The proposed 96-unit project represents a proportionate share of this village-wide obligation and, absent a waiver, would be responsible for approximately 0.80 acres of parkland dedication and $702,912 in park development fees. The combined estimated value of this obligation, including both land and development components, is approximately $1,606,080; therefore, the waiver would result in a one-time loss in revenues to the Parkland Acquisition & Development Fee Fund.
ONGOING FISCAL IMPACT
Approval of the waiver would reduce the amount of parkland dedication and/or in-lieu fee revenue collected for parks in this village. However, parkland and recreational facilities serving Village 2 are primarily funded and delivered through the broader Village 2 development, including market -rate units and associate d obligations. The waiver does not increase ongoing City costs and may reduce long -term maintenance obligations associated with additional parkland dedication.
ATTACHMENTS
None.
Staff Contact: Rebecca Bridgeford, Deputy Director of Development Services Roy Sapa’u, Deputy City Manager/Director of Development Services