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Exhibit 4 - Planning and Housing Commission Staff Report.pdf

Corona City Council
September 18, 2024

Document
Exhibit 4 - Planning and Housing Commission Staff Report.pdf
Meeting
September 18, 2024
Body
Corona City Council
Pages
9
Original file
13.4 MB
Text extracted from the city's file for reading and search. Open the original on pub-corona.escribemeetings.com. That file is the official record.

City of Corona
Staff Report
400 S. Vicentia Ave.

Corona, CA 92882
File #: 24-0673

PLANNING AND HOUSING COMMISSION

STAFF REPORT
DATE: 8/26/2024
TO: Honorable Chair and Commissioners
FROM: Planning & Development Department
APPLICATION REQUEST:

AHDB2023-0001: Application for a density bonus housing agreement for 35 single family residential units proposed on the east side of Garretson Avenue, approximately 530 feet south of Santana Way (APN: 120-020-022). (Applicant: Warmington Residential, 3090 Pullman Street, Costa Mesa, CA 92626).

RECOMMENDED ACTION:

That the Planning and Housing Commission recommend adoption of the Mitigated Negative Declaration and Mitigation Monitoring Plan and APPROVAL of AHDB2023-0001 to the City Council, based on the findings contained in the staff report and conditions of approval.

PROJECT SITE SUMMARY:

Area of Property: 9.33 acres
Existing Zoning: R-1-20 and R-1-14.4 (both Single Family Residential) Existing General Plan: Estate Residential (ER), 1-3 du/ac Existing Land Use: Vacant Land
Proposed Land Use: Single Family Housing Development
Surrounding Zoning/Land Uses:

N: R-1-14.4 (Single Family Residential) / Single Family Residential E: R-1-7.2 (Single Family Residential) / Single Family Residential S: R-1-20 (Single Family Residential) / Single Family Residential W: R-1A (Single Family Residential) / Single Family Residential

PROJECT SUMMARY
The applicant is requesting to build 35 single family residential units located on the east side of Garretson Avenue, approximately 530 feet south of Santana Way (APN: 120-020-022) (Exhibits 1 and 2). The project is an affordable housing development per Chapter 17.87 of the Corona Municipal Code (CMC) and State Density Bonus Law [SDBL, Government Code § 65915]. Section 17.87.020 of City of Corona Page 1 of 7 Printed on 8/22/2024
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Code (CMC) and State Density Bonus Law [SDBL, Government Code § 65915]. Section 17.87.020 of the CMC defines an affordable unit as “a dwelling unit within a household development, which will be reserved for sale, at an affordable housing cost, or rent, at an affordable rent, to a lower income household, a very low income household, a moderate income household, or a qualifying resident pursuant to the requirements of this chapter (Chapter 17.87 of the CMC) and the State Density Bonus Law.”
In order for a housing project to be eligible for certain benefits provided by the State Density Bonus Law and CMC Chapter 17.87, the applicant has agreed to sell two of the residential units to qualifying households at an affordable housing cost. Under the State Density Bonus Law, the development is eligible for a density bonus and/or other benefits including waivers of the city’s residential development standards established by the CMC. The applicant is required to enter into a density bonus housing agreement with the City of Corona, which is the mechanism that ensures the development remains affordable according to the density and benefits that are being granted by the city.

The applicant has filed two separate applications associated with this agreement, Precise Plan (PP) 2023-0009 and Tentative Tract Map (TTM) 38495. The purpose of the precise plan is to review the site plan, architecture, and other features associated with the proposed project, and the tentative tract map is to review the proposed subdivision of the 9.33 acre parcel into 35 residential lots.

Details associated with PP2023-0009 and TTM 38495 are provided under separate staff reports for the Planning and Housing Commission’s consideration. The agreement must be approved in order for the precise plan and tentative tract map to be approved.

DENSITY BONUS HOUSING AGREEMENT
The density bonus housing agreement, AHDB2023-0001, for the project is provided in Exhibit 3. The agreement outlines the requested waivers, identification of the affordable units, construction schedule, annual reporting and other pertinent language such as the term of the agreement, which is 45 years from the date of occupancy. The following summarizes the salient sections within the agreement.

Affordable Units
The agreement identifies the affordable lot numbers in the table corresponding to TTM 38495 and the site plan associated with PP2023-0009. The affordable units subject to this agreement are summarized in Table A.

TABLE A: AFFORDABLE UNITS
NO. OF UNITS & UNIT TYPE LOT NUMBER ELIGIBLE INCOME GROUP Two (2) Units - Four-Bedroom Lot #12 & Lot #27 Very Low Income Total: Two (2) Affordable
Units
Density Bonus
The Corona General Plan allows the project to have a base density is 28 units (9.33 acres x 3 dwelling units/acre). The applicant is proposing six percent of the total units for very low income.

The SDBL allows a 22.5 percent increase in density (“density bonus”) which equates to seven City of Corona Page 2 of 7 Printed on 8/22/2024
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The SDBL allows a 22.5 percent increase in density (“density bonus”) which equates to seven additional units on top of the 28 units, allowing for 35 total units. The density bonus is identified under section 2.4 of the agreement.

Concession and Waivers
Because the project is providing six percent of the total units at very low income, the developer is allowed one concession allowing a reduction in site development standards or architectural design requirements. Additionally, the developer is allowed an unlimited number of development standard waivers. The project is being developed per the municipal code’s established development standards for the R-1-20 and R-1-14.4 zones. The applicant is requesting the city’s approval of several waivers to reduce or modify certain residential development standards in the municipal code in order for the applicant to build the affordable housing project at the density proposed. Section 2.4 of the agreement identifies the waivers which the applicant is seeking from the city from the following development standards:

1. CMC § 17.11.060, to reduce the minimum 20,000 square foot lot area requirement in the R-1- 20 zone, reduced to 19,674 square feet for Lot 1 and 7,350 to 8,583 square feet for Lots 17 thru 21 and 33 thru 35.

2. CMC § 17.20.060, to reduce the minimum 14,400 square foot lot area requirement in the R-1-

14.4 zone to 7,350 to 8,692 square feet for Lots 6 thru 17 and Lots 21 thru 33.

3. CMC § 17.11.070(A) to reduce the minimum 100-foot lot width requirement to 70 to 75 feet for Lots 17 thru 21 and 33 thru 35.

4. CMC § 17.20.070(A) to reduce the minimum 90-foot lot width requirement to 70 to 80.7 feet for Lots 6 thru 17 and Lots 21 thru 33.

5. CMC § 17.11.070(B) to reduce the minimum 150-foot lot depth requirement to 110.36 feet for Lot 1, to 105 feet for Lots 17, 18 and 33 thru 35, and to 110 feet for Lots 19 thru 21;

6. CMC § 17.11.100(B)(1) to reduce the minimum 25-foot front yard setback requirement to 20 feet for Lot 1 and 15 feet for Lots 17, 18, 19, 20, 21 and 33 thru 35;

7. CMC § 17.20.100(B)(1) to reduce the minimum 25-foot front yard setback requirement to 15 feet for Lots 6 thru 17 and 21 thru 33 and to 20 feet for Lots 2 thru 4.

8. CMC § 17.11.100(C)(1) to reduce the minimum 10-foot side yard setback requirement on one side to 5 feet for Lots 21 and 34 and to 8 feet for Lots 17, 20 and 33;

9. CMC § 17.20.100(C)(1) to reduce the minimum 10-foot side yard setback requirement on one side to 5 feet for Lots 8, 21, 23, 27, 30 and 32; and 8 feet for Lots 6, 7, 9, 11-17, 22, 24-26, 28, 31 and 33;

10. CMC § 17.11.100(C)(2) to reduce the minimum corner (siding a local street) 15-foot side yard setback requirement to 10 feet for Lots 19 and 35;
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11. CMC § 17.20.100(C)(5) to reduce the minimum 25-foot side yard setback requirement for reverse corner lots to no less than 9.46 feet for Lot 28 and 18.54 feet for Lot 26;

12. CMC § 17.11.120 to increase the maximum 30 percent lot area coverage requirement for twostory buildings or structures to 35 percent for Lots 18, 21, 33 and 34;

13. CMC § 17.20.120 to increase the maximum 30 percent lot area coverage requirement for twostory buildings or structures to 35 percent for Lots 7, 8, 9, 12, 14, 16, 21, 23, 27, 30, 31, 32 and 33;

14. CMC § 17.04.358(A) to reduce the minimum 20,000 square foot flag lot area requirement to no less than 12,091.91 square feet for Lot 10;

15. City’s Residential Design Guideline § 4.1.B.5.a to reduce the minimum 15-foot garage setback requirement from the front of the dwelling to 2 feet and to eliminate this requirement from Plans 2 and 2R, where the one-car garage extends past the front of the primary structure;

16. City’s Residential Design Guideline § 4.2.B.8, regarding the plotting of homes to avoid the placement of two, two-story elements directly adjacent to one another, to allow two, twostory elements to be directly adjacent to one another and to not “flip” any plans for Lots 6 through 35;

17. City Standard Plan Number 110 (Private Residential Street), to reduce the minimum overall right-of-way width for the private street from 56 feet to 46 feet, to include 36 feet of roadway width, measured from curb to curb, and a five-foot wide sidewalk (including a six-inch curb) on both sides of the street. The 36-foot roadway width shall allow for on-street parking along one side of the street.

18. CMC § 17.04.358 to reduce the minimum 80-foot access corridor depth requirement for a flag lot to a depth of 43 feet for Lot 10; and

19. CMC § 16.08.020, to reduce the minimum 45-foot lot width requirement measured at the curb line between the property line prolongations for lots on knuckles or curved streets to no less than 27.43 feet for Lot 5 and 30.56 feet for Lot 11.

Construction of Affordable Units
Per Section 3.4, the affordable units shall be constructed concurrently with or prior to the other residential units in the project, and the applicant shall not receive certificates of occupancy for more than twenty percent (20%) of the market rate residential units in the project, if any, prior to receiving a certificate of occupancy for fifty percent (50%) of the affordable units, and shall not receive certificates of occupancy for more than seventy percent (70%) of the market rate residential units in the project, if any, prior to receiving a certificate occupancy for the remaining fifty percent (50%) of the affordable units. The agreement further stipulates that the affordable units be dispersed throughout the project site.

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Other Terms and Conditions
Terms and conditions of the agreement include, but are not limited to, the following:
· The term of the agreement is for 45 years from project’s occupancy date. · The city has the right to inspect the affordable units and documents. · The agreement runs with the land for the full 45-year term of the agreement. · Prior to the close of escrow for each affordable unit, the applicant shall require the purchaser of the affordable unit, for itself, its successors, assignees and affiliates, to execute a covenant or agreement, in a form approved by the Director of Planning and Development. · The agreement establishes policies and criteria for purchaser selection and income verification.
· The applicant is required to prepare and maintain complete and accurate project records for so long as this agreement remains in effect. The applicant shall, at all times following the initial sale of the affordable units, maintain, safe and intact, all of the project records for a period of not less than six (6) years from the generation of such project records. · The agreement shall be implemented and utilized within 24 months of the effective date of the agreement or within the time limit that applies to the project’s associated entitlements (TTM 38495 and PP2023-0009), whichever is longer.

ENVIRONMENTAL ANALYSIS
Per Section 15070(b) of the State Guidelines for Implementing the California Environmental Quality Act (CEQA) and Section 6.02 of the city’s Local Guidelines, a Mitigated Negative Declaration (MND) was prepared for the project since the Initial Study identified that the project’s potentially significant effects to the environment are capable of being mitigated to less than significant. Therefore, based on the project’s mitigation measures and mitigation monitoring and reporting program identified in the MND, there is no substantial evidence, in light of the whole record before the city, that the project may have a significant or potentially significant effect on the environment. The MND is therefore recommended for adoption (Exhibit 6).

FISCAL IMPACT
The applicant has paid the applicable application processing fees for the project.

PUBLIC NOTICE AND COMMENTS
A 20-day public notice was mailed to all property owners and occupants within a 500-foot radius of the project site, as well as advertised in the Sentinel Weekly News and posted at the project site.

Additionally, the MND was electronically sent to the State Clearinghouse. As of the preparation of this report, no comments have been received from the public in response to the public notice.

STAFF ANALYSIS
The affordable housing development proposed by PP2023-0009 and TTM 38495 have been reviewed against the applicable codes and requirements of the Corona Municipal Code and State Density Bonus Law. The density bonus housing agreement is necessary in order to ensure that the housing development remains affordable. The agreement addresses all of the necessary elements that are required to be addressed per Chapter 17.87 of the CMC which governs density bonus housing agreements.

The project’s base density of 3 du/ac, before the density bonus, is consistent with the project site’s City of Corona Page 5 of 7 Printed on 8/22/2024
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The project’s base density of 3 du/ac, before the density bonus, is consistent with the project site’s Estate Residential land use designation under the General Plan, which allows single family residential use up to 3 du/ac. Per the State Density Bonus Law, with two affordable units, the applicant is allowed a density bonus of seven additional units, elevating the density to 3.75 du/ac. The project and agreement are therefore consistent with several goals and policies of the General Plan pertaining to providing a balance of housing types and affordability levels to all economic segments of the City.

Therefore, the Planning and Development Department recommends approval of AHDB2023-0001 based on the findings of approval listed below and the recommended conditions of approval in Exhibit 5.

FINDINGS FOR THE APPROVAL OF AHDB2023-0001

1. An initial study (environmental assessment) has been conducted by the City of Corona so as to evaluate the potential for adverse environmental impacts. The initial study identifies potentially significant effects on the environment, but:
a. The project applicant has agreed to revise the project to avoid these significant effects or to mitigate the effects to a point where it is clear that no significant effects would occur, as reflected in the Mitigation and Monitoring Program within the Mitigated Negative Declaration and within the Conditions of Approval attached as Exhibits 6 and 5, respectively.
b. There is no substantial evidence before the City that the project may have a significant effect.

2. All the conditions necessary to granting a Density Bonus Housing Agreement as set forth in Chapter 17.87 of the Corona Municipal Code do exist in reference to AHDB2023-0001 for the following reasons:
a. The density bonus agreement is consistent with the objectives, policies, general land uses and programs specified in the General Plan because the agreement is associated with a proposed single family residential development with a density of 3 du/ac (before the density bonus) which is consistent with the Estate Residential density range of 1-3 du/ac.
b. The density bonus agreement is for a single family residential use which is a permitted use in the R-1-20 and R-1-14.4 zones, and as allowed by the state density bonus law and the density bonus agreement, certain waivers have been applied to certain development standards to support the development of affordable housing. c. The density bonus agreement, in conjunction with associated Precise Plan 2023-0009 and TTM 38495, is in conformity with the public convenience, general welfare and good land practice because the project will develop an underutilized vacant parcel, add 35 housing units to the city’s existing housing inventory, and will include public infrastructure improvements, landscaped setbacks, and amenities for future residents.

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d. The density bonus agreement will not be detrimental to the health, safety and general welfare of the community because the project site’s R-1-20 and R-1-14.4 zones permit the proposed single family residential use, and the project will connect to existing water, sewer and utilities to be located within a public utilities easement within the proposed private street of the development. Additionally, the project has been reviewed for compliance with the applicable requirements in the Corona Municipal Code including building and fire codes, and the waivers requested in the density bonus agreement have been reviewed by the applicable city departments and determined that the reduced or modified development standards will not result in an adverse impact on the public’s health, safety or the environment.
e. The density bonus agreement will not adversely affect the orderly development of the subject property in which the project is located within or the preservation of property values because, as conditioned by the precise plan and tentative tract map, the project is required to meet the applicable building and fire codes and construct all missing public improvements within Garretson Avenue adjacent to the project site ensuring orderly development of the property, and the single family residential use is compatible with existing surrounding single family residential developments. f. The density bonus agreement should be approved because it supports a single family residential, affordable housing development that is consistent with the General Plan land use designation of Estate Residential and the Housing Element.

PREPARED BY: ROCIO LOPEZ, CONSULTING PLANNER
REVIEWED BY: SANDRA VANIAN, PLANNING MANAGER
SUBMITTED BY: JOANNE COLETTA, PLANNING & DEVELOPMENT DIRECTOR

EXHIBITS

1. Locational and Zoning Map

2. Site Plan

3. Density Bonus Housing Agreement

4. Applicant’s letter requesting a density bonus housing agreement

5. Conditions of Approval

6. Environmental Documentation
Case Planner: Rocio Lopez (951) 736-2293
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LOCATIONAL & ZONING MAP
AHDB2023-0001
Garretson Avenue
120-020-022
ZONING LEGEND:

R-1-20 (Single Family Residential)
R-1-14.4 (Single Family Residential)
R-1-12 (Single Family Residential)
R-1-8.4 (Single Family Residential)
R-1-7.2 (Single Family Residential)
R-1-A (Single Family Residential)
A (Agriculture) / P (Park)

R-3 (Multiple Family Residential)
R-1-7.2 (Single Family Residential)
C-3 (Commercial)
S (School)
CS (Community Service)
R1-8.4 R1-A
R1-12
A
R1-14.4
R1-7.2
P
T
0 40 80 20 Architecture + Planning
17911 Von Karman Ave, Suite 200
Irvine, CA 92614
949.851.2133
ktgy.com
GARRETSON AVENUE CORONA, CA KTGY # 2023-0608 Warmington Residential 3090 Pullman Street Costa Mesa, CA 92626 714.434.4439
2024-6-5
1st Submittal: 2023-10-25 Plot Date: 2nd Submittal: 2024-02-08 3rd Submittal: 2024-04-15
4th Submittal: 2024-06-06 A0.10
(CITY ATTY: 05-24)
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RECORDING REQUESTED BY AND
WHEN RECORDED MAIL TO:

City of Corona
400 S. Vicentia Avenue
Corona, CA 92882
Attn: Planning & Development Director
APNs: 120-020-022 SPACE ABOVE FOR RECORDER'S USE ONLY

EXEMPT FROM RECORDING FEE PER
GOVERNMENT CODE §27383 AND §27388.1(a)(2)(D)

CITY OF CORONA

DENSITY BONUS HOUSING AGREEMENT - FOR-SALE HOUSING

WITH CONCORD ASSOCIATES, LP
(2501 GARRETSON AVENUE, CORONA CA 92880)
CMC CHAPTER 17.87

1. PARTIES AND DATE.

This Density Bonus Housing Agreement (“Agreement”) is made and entered into this 18th day of September, 2024 (“Effective Date”) by and between the City of Corona, a municipal corporation organized under the laws of the State of California with its principal place of business at 400 South Vicentia Avenue, Corona, California 92882 (“City”) and Concord Associates, L.P., a California limited partnership with its principal place of business at 3090 Pullman Street, Costa Mesa, CA 92626 (“Owner”). City and Owner are sometimes individually referred to as “Party” and collectively as “Parties” in this Agreement.

2. RECITALS.

2.1 Owner. Owner is the owner in fee of certain real property located at 2501 Garretson Avenue, Corona, in Riverside County, California, and designated as Assessor Parcel Number(s) 120-020-022, as described and depicted in Exhibit “A” attached hereto and incorporated herein by reference (“Property”).

2.2 Housing Development Project. Owner proposes to construct and operate a Housing Development, as that term is defined in Corona Municipal Code (“CMC”) Section

17.87.020, on the Property consisting of thirty-five (35) dwelling units (“Residential Units”), which will be known as Garretson Development project (“Project”).

2.3 Density Bonus Law. Under Government Code Section 65915 et seq. (“State Density Bonus Law”) and CMC Chapter 17.87, the City must, upon the request of an applicant, grant a density bonus and/or certain incentives/concessions or waivers/modifications for any development applicant that seeks and agrees to construct a minimum number of residential units that are affordable to moderate, lower and/or very low income households. 2 (CITY ATTY: 05-24)
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2.4 Project Entitlements. The City Council’s approval of the Project includes the following entitlements:
(a) density bonus of seven (7) for-sale units (“Density Bonus”) over the Project’s base density of twenty-eight (28) for sale units;
(b) waivers from the following:
(i) CMC § 17.11.060 to reduce the minimum 20,000 square foot lot area requirement in the R-1-20 zone to 19,674 square feet for Lot 1 and 7,350 to 8,583 square feet for Lots 17 thru 21 and 33 thru 35; (ii) CMC § 17.20.060 to reduce the minimum 14,400 square foot lot area requirement in the R-1-14.4 zone to 7,350 to 8,692 square feet for Lots 6 thru 17 and 21 thru 33;
(iii) CMC § 17.11.070 (A) to reduce the minimum 100-foot lot width requirement to 70 to 75 feet for Lots 17 thru 21 and 33 thru 35; (iv) CMC § 17.20.070 (A) to reduce the minimum 90-foot lot width requirement to 70 to 80.7 feet for Lots 6 thru 17 and 21 thru 33. (v) CMC § 17.11.070(B) to reduce the minimum 150-foot lot depth requirement to 110.36 feet for Lot 1, to 105 feet for Lots 17, 18 and 33 thru 35, and to 110 feet for Lots 19 thru 21;
(vi) CMC § 17.11.100(B)(1) to reduce the minimum 25-foot front yard setback requirement to 20 feet for Lot 1 and 15 feet for Lots 17, 18, 19, 20, 21 and 33 thru 35;
(vii) CMC § 17.20.100(B)(1) to reduce the minimum 25-foot front yard setback requirement to 15 feet for Lots 6 thru 17 and 21 thru 33 and to 20 feet for Lots 2 thru 4.
(viii) CMC § 17.11.100(C)(1) to reduce the minimum 10-foot side yard setback requirement on one side to 5 feet for Lots 21 and 34 and to 8 feet for Lots 17, 20 and 33;
(ix) CMC § 17.20.100(C)(1) to reduce the minimum 10-foot side yard setback requirement on one side to 5 feet for Lots 8, 21, 23, 27, 30 and 32; and 8 feet for Lots 6, 7, 9, 11-17, 22, 24-26, 28, 31 and 33; (x) CMC § 17.11.100(C)(2) to reduce the minimum corner (siding a local street) 15-foot side yard setback requirement to 10 feet for Lots 19 and 35;
(xi) CMC § 17.20.100(C)(5) to reduce the minimum 25-foot side yard setback requirement for reverse corner lots to no less than 9.46 feet for Lot 28 and 18.54 feet for Lot 26;
(xii) CMC § 17.11.120 to increase the maximum 30 percent lot area coverage requirement for two-story buildings or structures to 35 percent for Lots 18, 21, 33 and 34;
(xiii) CMC § 17.20.120 to increase the maximum 30 percent lot area coverage requirement for two-story buildings or structures to 35 percent for Lots 7, 8, 9, 12, 14, 16, 21, 23, 27, 30, 31, 32 and 33; 3 (CITY ATTY: 05-24)
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(xiv) CMC § 17.04.358(A) to reduce the minimum 20,000 square foot flag lot area requirement to no less than 12,091.91 square feet for Lot 10;
(xv) City’s Residential Design Guideline § 4.1.B.5.a to reduce the minimum 15-foot garage setback requirement from the front of the dwelling to 2 feet and to eliminate this requirement from Plans 2 and 2R, where the one-car garage extends past the front of the primary structure;
(xvi) City’s Residential Design Guideline § 4.2.B.8, regarding the plotting of homes to avoid the placement of two, two-story elements directly adjacent to one another, to allow two, two-story elements to be directly adjacent to one another and to not “flip” any plans for Lots 6 through 35;
(xvii) City Standard Plan Number 110 (Private Residential Street), to reduce the minimum overall right-of-way width for the private street from 56 feet to 46 feet, to include 36 feet of roadway width, measured from curb to curb, and a five-foot wide sidewalk (including a six-inch curb) on both sides of the street. The 36-foot roadway width shall allow for on-street parking along one side of the street;
(xviii) CMC § 17.04.358 to reduce the minimum 80-foot access corridor depth requirement for a flag lot to a depth of 43 feet for Lot 10; (xix) CMC § 16.08.020, to reduce the minimum 45-foot lot width requirement measured at the curb line between the property line prolongations for lots on knuckles or curved streets to no less than

27.43 feet for Lot 5 and 30.56 feet for Lot 11; and
(c) Precise Plan (PP2023-0009), Affordable Housing Density Bonus (AHDB2023-0001) and Tentative Tract Map (TTM 38495) dated [***INSERT DATE****].

2.5 Density Bonus Units. In order to qualify for the State Density Bonus Law and CMC Chapter 17.87, Owner has agreed to sell two (2) of the Residential Units on the Property to Qualifying Households (as defined below) at an Affordable Housing Cost (as defined in CMC

17.87.020).

2.6 Agreement. City and Owner desire to enter into this Agreement in accordance with the State Density Bonus Law and CMC Chapter 17.87 to ensure that the Owner will construct and operate the Project in a manner that will ensure the provision of the required Affordable Units in exchange for the Density Bonus.

3. TERMS.

3.1 Recitals. The Recitals set forth above are true and accurate, and incorporated herein.
4 (CITY ATTY: 05-24)
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3.2 Definitions. For purposes of this Agreement, all defined terms, as indicated by initial capitalization, shall have the meanings set forth in CMC Chapter 17.87, except as expressly indicated otherwise herein. Additionally, the terms listed below shall have the meanings thereafter specified:

3.2.1 Affordable Unit(s). The two (2) dwelling unit(s) that will be offered for sale exclusively to a Qualifying Household at an Affordable Housing Cost pursuant to this Agreement.

3.2.2 CMC. The Corona Municipal Code.

3.2.3 Density Bonus. The density bonus granted to the Project through the Project Approvals, as more specifically described in Section 2.4 of this Agreement.

3.2.4 Director. The Planning and Development Director for the City of Corona or his or her designee.

3.2.5 Occupancy Date. The date the Purchaser Covenant, as more specifically described in Section 3.7, is first recorded against the Affordable Unit.

3.2.6 Project. The Project, as defined in Section 2.2 includes all required or associated on-site and off-site improvements, hardscape improvements, parking areas and landscaping improvements to the Property, in accordance with the Project Approvals, the plans and specifications approved by the City, any conditions imposed by the City in issuing the Project Approvals and any other development entitlements related to the Project and applicable law.

3.2.7 Project Records. Information regarding sales price, principal residency requirement, occupancy status, household and income characteristics of purchasers of the Affordable Units, including Income Certification Forms completed by purchasers of the Affordable Units pursuant to Section 3.7.2 of this Agreement.

3.2.8 Project Approvals. As described in Section 2.4 of this Agreement.

3.2.9 Property. That certain real property located within the City of Corona, County of Riverside, State of California, specifically described in the legal description attached as Exhibit "A" to this Agreement, which is incorporated into this Agreement by this reference.

3.2.10 Qualifying Household. A household that: (1) resides or intends to reside in one of the Affordable Units on the Property; and (2) whose income does not exceed the maximum income allowable for a Very Low Income Household, as applicable to the Affordable Unit described in Exhibit “B”.

3.2.11 State Density Bonus Law. Chapter 4.3 of Division 1 of Title 7 of the California Government Code (Gov’t Code §§ 65915 et seq.). 5 (CITY ATTY: 05-24)
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3.2.12 Term. For each Affordable Unit, the period of forty-five (45) years from the Occupancy Date.

3.3 Identification of Affordable Units. The Affordable Units shall be those described in Exhibit “B” attached hereto and incorporated herein by reference. The identification of the Affordable Units shall not be changed without the prior written approval of the Director.

3.4 Construction of Affordable Units. The Affordable Units shall be constructed concurrently with or prior to the other Residential Units in the Project, and the Owner shall not receive certificates of occupancy for more than twenty percent (20%) of the market rate Residential Units in the Project, if any, unless and until certificates of occupancy are issued for at least fifty percent (50%) of all of the Affordable Units, and shall not receive certificates of occupancy for more than seventy percent (70%) of the market rate Residential Units in the Project, if any, unless and until certificates of occupancy are issued for the remaining fifty percent (50%) of the Affordable Units. The Affordable Units shall be dispersed throughout the Project. Owner shall provide the Affordable Units with the same levels of services and maintenance as is provided to the other Residential Units in the Project.

3.5 Reservation of Affordable Units for Affordable Housing.

3.5.1 Qualifying Households Only. Owner covenants and agrees to reserve and restrict the Affordable Units for the Term for the purchase, use and residential occupancy of those who, at the time of initial sale and continuously thereafter (subject to the other provisions of this Agreement), is a Qualifying Household.

3.5.2 Affordable Housing Cost. Owner covenants and agrees, for the benefit of City, that during the Term the Affordable Units shall only be sold to Qualifying Households at an Affordable Housing Cost.

3.5.3 Rental of Affordable Units. Rental of the Affordable Units is prohibited unless the proposed tenant qualifies as a Qualifying Household.

3.5.4 No Transient Uses. Notwithstanding Section 3.5.3, the Affordable Units shall not be used on a transient basis and shall not be leased or rented for a period of less than twelve (12) months. The Affordable Units will not, at any time, be leased or rented for use as a hotel, motel, time share, dormitory, fraternity house, sorority house, rooming house, hospital, nursing home, sanitary or rest home.

3.5.5 Utilization of Affordable Units. No Affordable Unit shall be withdrawn from the market or otherwise held vacant during the Term.

3.6 Purchaser Selection and Income Verification.
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3.6.1 Purchaser Selection Policies and Criteria. The Owner shall adopt written purchaser selection policies and criteria applicable to the Affordable Units, which shall be subject to the approval of the Director and that:
(a) are consistent with the purpose of providing affordable housing for Qualifying Households at an Affordable Housing Cost;
(b) give first priority to Qualifying Households who reside, work, go to school or have family in the City of Corona;
(c) provide for the selection of purchasers from a written waiting list in the chronological order of their application, insofar as is practicable; (d) give prompt written notice to any rejected applicant of the grounds for rejection;
(e) except as provided in subsection (b) above, do not give preference to any particular class or group of persons except to the extent that the purchaser must be a Qualifying Household;

3.6.2 Determination of Household Income. Determination of Qualifying Household income shall be made by Owner at the time of initial application by an individual or family for purchase of each of the Affordable Units. At the time of initial application, Owner shall require an applicant to complete an income certification form in a form as approved by the Director (the “Income Certification Form”) and certify the accuracy of the information provided on such form.

3.6.3 Verification. Owner shall make a good faith effort to verify the accuracy of income information provided in any Income Certification Form by an applicant for purchase of the Affordable Unit by taking one or more of the following steps, as reasonably required or indicated:
(a) Obtain an income tax return and copy of each W2 Wage and Earnings Statement for the most recently concluded income tax year; (b) Contact a credit reporting agency or conduct a similar search; (c) Obtain an income verification form from the Qualifying Household's current employer(s);
(d) Obtain an income verification form from the United States Social Security Administration or the California Department of Social Services, if the applicant or the Qualifying Household receives assistance from either of such agencies; or (e) If the applicant or an adult member of a Qualifying Household is unemployed and has no such income tax return, obtain another form of independent verification. 7 (CITY ATTY: 05-24)
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3.6.4 Evidence. For purposes of this Section, Owner may conclusively rely upon the evidence of the age of a person as presented in a valid California Driver's License or other form of identification issued by the State of California or the United States Government that includes a date of birth and a photograph of the subject person. All such verification information shall only be obtained by Owner after obtaining the Qualifying Household's written consent for the release of such information to Owner. Failure to consent in writing to the release of such income verification information to Owner may disqualify the Qualifying Household for purchase of an Affordable Unit.

3.6.5 Equivalent Purchase Terms. Owner shall apply the same purchase terms and conditions to potential purchasers of the Affordable Units as are applied to all other purchasers of Residential Units within the Project, except as otherwise required to comply with this Agreement (i.e., income requirements) and/or government subsidy programs.

Discrimination based on subsidies received by the potential purchaser of an Affordable Unit is prohibited.

3.7 Purchaser Covenant Restricting Sale of Affordable Units. Prior to the close of escrow for each Affordable Unit, Owner shall require the purchaser of the Affordable Unit, for itself, its successors, assignees and affiliates, to execute a covenant or agreement, in a form approved by the Director (“Purchaser Covenant”), that includes the following provisions:

3.7.1 Incorporation of Density Bonus Housing Agreement. The Purchaser Covenant shall incorporate each and every provision of this Agreement, either expressly or by reference.

3.7.2 Future Sales of Affordable Units. The Purchaser Covenant shall expressly state that during the Term, the Affordable Unit shall only be sold or resold to Qualifying Households at an Affordable Housing Cost in accordance with CMC Chapter 17.87 and the State Density Bonus Law.

3.7.3 Right of First Refusal. The Purchaser Covenant shall provide that when the Term has expired, the then-current owner of the Affordable Unit shall offer the City and/or a non-profit housing organization the right of first refusal to purchase the Affordable Unit for a minimum of sixty (60) days prior to offering the Affordable Unit for sale, transfer or assignment to any other person or entity.

3.7.4 Recordation. The Purchaser Covenant shall be recorded against the Affordable Unit prior to the close of escrow for the initial sale of the Affordable Unit. The Purchase Covenant shall be subordinate only to the grant deed conveying the Affordable Unit to the purchaser and any conventional first mortgage obtained by Purchaser.

3.8 Ineligible Purchasers. Owner shall not sell an Affordable Unit to any person with any family relationship to Owner or who owns, directly or indirectly, any interest in the Project or the Property. For purposes of this section, indirect ownership by an individual shall mean ownership by a family member, ownership by a corporation, partnership, estate or trust in 8 (CITY ATTY: 05-24)
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proportion to the ownership or beneficial interest in such corporation, partnership, estate or trust held by the individual or a family member, and ownership, direct or indirect, by a partner of the individual.

3.9 Retention of Project Records. The Owner shall prepare and maintain complete and accurate Project Records for so long as this Agreement remains in effect. The Owner shall, at all times following the initial sale of the Affordable Units, maintain, safe and intact, all of the Project Records for a period of not less than six (6) years from the generation of such Project Records. From time to time, upon request from the City, the Owner shall make all Project Records, whether in the custody or control of the Owner or its Affiliates, available to the City, the City’s auditor, representative or agent for examination and copying at any reasonable time, on fifteen (15) calendar days advance notice.

3.10 Federal and State Laws. Notwithstanding anything herein to the contrary, nothing contained herein shall require Owner or City to do anything contrary to or refrain from doing anything required by federal and state laws or regulations applicable to the construction, management, maintenance, and sale of low and very low income housing units in the City of Corona.

3.11 Prohibition Against Discrimination. Owner shall not discriminate against any Qualifying Household or potential tenant on the basis of sex, color, race, religion, ancestry, national origin, age, pregnancy, marital status, family composition, sexual orientation, or the potential or actual occupancy of minor children. Owner further agrees to take affirmative action to ensure that no such person is discriminated against for any of the above mentioned reasons.

3.12 Indemnification. Owner shall defend, indemnify and hold harmless City and its officers, agents, employees, representatives, and volunteers (collectively, “Indemnitees”) from and against any loss, liability, claim or judgment relating in any manner to this Agreement.

Owner shall not be required to indemnify and hold harmless Indemnitees for liability attributable to the active negligence or willful misconduct of Indemnitees, provided such active negligence is determined by agreement between the parties or by the findings of a court of competent jurisdiction. In instances where an Indemnitee is shown to have been actively negligent and where Indemnitees’ active negligence accounts for only a percentage of the liability involved, the obligation of Owner will be for that entire portion or percentage of liability not attributable to the active negligence of Indemnitees.

3.13 City’s Right to Inspect Affordable Units and Documents. City may inspect the Affordable Units during normal business hours, upon 48 hours’ notice, for so long as this Agreement remains in effect, to determine Owner’s compliance with this Agreement.

3.14 Agreement to be Recorded; Covenants Run with the Land; Priority. This Agreement shall be recorded within ten (10) days of the Effective Date in the Official Records of Riverside County, California, as senior, non-subordinate covenants and as an encumbrance running with the land for the full Term of this Agreement and shall pass to and be binding upon Owner and all parties having any interest in the Affordable Units for the benefit of City and Qualifying Households. In no event shall this Agreement be made junior or subordinate to any 9 (CITY ATTY: 05-24)
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deed of trust or other documents providing financing for the construction or operation of the Project, or any other lien or encumbrance whatsoever for the entire Term of this Agreement except as provided in Section 3.7.4. Nor shall this Agreement be made junior or subordinate to any extension, amendment, or modification of any lien or encumbrance recorded against the Property prior to the date hereof. Prior to recordation of this Agreement, Owner shall provide City with evidence satisfactory to the City that all deeds of trust, liens, encumbrances, or other documents recorded against the Property prior to the Effective Date have been or will be subordinated to this Agreement, at Owner’s sole cost and expense. Each and every contract, deed, lease or other instrument covering, conveying or otherwise transferring the Property or any interest therein, as the case may be (each a “Contract”), shall conclusively be held to have been executed, delivered and accepted subject to this Agreement regardless of whether the other party or parties to such Contract have actual knowledge of this Agreement.

3.15 Default. Failure or delay by either Party to perform any term or provision of this Agreement, which is not cured within thirty (30) days after receipt of notice from the other Party, constitutes a default under this Agreement. The party who so fails or delays must immediately commence to cure, correct or remedy such failure or delay, and shall complete such cure, correction or remedy with due diligence. The injured party shall give written notice of default to the Party in default specifying the default complained of by the injured Party. Except as required to protect against further damages, the injured Party may not initiate proceedings against the Party in default until thirty (30) days after giving such notice. Failure or delay in giving such notice shall not constitute a waiver of any default, nor shall it change the time of default.

3.16 Remedies.

3.16.1 All Remedies Available. A default hereunder shall give the nondefaulting Party the right to proceed with any and all remedies available at law or equity. Such remedies may include an action for damages, an action or proceeding for specific performance, and/or an action or proceeding for injunctive relief. Such actions or proceedings may require the defaulting Party to pay damages, to perform its obligations and covenants under this Agreement, and to enjoin or cease and desist from acts which may be unlawful or in violation of the provisions of this Agreement.

3.16.2 Revocation of Permits. City may institute any appropriate legal actions or proceedings necessary to ensure compliance with this Agreement, including but not limited to:
(a) Actions to revoke, deny or suspend any permits and/or certificate of occupancy; and
(b) Actions for injunctive relief or damages.

3.16.3 Municipal Code Violation. It is agreed and understood that the covenants to maintain the Affordable Units as set forth herein are a requirement of CMC Chapter 17.87 and as a condition to receiving the Density Bonus and the concessions and waivers described in Section 2.4 of this Agreement, Owner agrees that a breach of the covenants to maintain the 10 (CITY ATTY: 05-24)
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Affordable Units for the Term constitutes a violation of the CMC, subject to enforcement by all legally available means.

3.16.4 Excessive Sale Price. It shall constitute a default for the Owner to charge or accept for any Affordable Unit a sale price in excess of the Affordable Housing Cost, to fail to sell an Affordable Unit to a Qualifying Household as required by Section 3.5 of this Agreement, or to otherwise sell an Affordable Unit to a purchaser that does not qualify as a Qualifying Household.

3.17 Expiration of Density Bonus. The Density Bonus permitted by this Agreement shall be implemented and utilized within twenty-four (24) months of the Effective Date or within the time limit that applies to the other Project Approvals, whichever is longer (“Density Bonus Deadline”). If the Density Bonus is not implemented and utilized by the Density Bonus Deadline, the Density Bonus and this Agreement shall become null and void and of no further force or effect unless Owner submits an application requesting an extension prior to the Density Bonus Deadline, which extension may be approved by the Director upon a finding of unavoidable delay.

3.18 General Provisions.

3.18.1 Delivery of Notices. All notices permitted or required under this Agreement shall be given to the respective Parties at the following address, or at such other address as the respective Parties may provide in writing for this purpose:

Owner:

Concord Associates, L.P.
3090 Pullman Street
Costa Mesa, CA 92626
Contact: Joe Oftelie
City:

City of Corona
400 South Vicentia Avenue
Corona, CA 92882
Attn: Planning & Development Director
Such notice shall be deemed made when personally delivered or when mailed, forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the Party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service.

3.18.2 Governing Law; Government Code Claim Compliance. This Agreement shall be governed by the laws of the State of California. Venue shall be in Riverside County.

3.18.3 Time of Essence. Time is of the essence for each and every provision of this Agreement.
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3.18.4 No City Responsibility for Project. City shall have no responsibility for the construction, installation, management, operation or maintenance of the Project.

3.18.5 Successors and Assigns. This Agreement shall be binding on the successors and assigns of the Parties.

3.18.6 Amendment; Modification. No supplement, modification or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties.

3.18.7 Waiver. No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel or otherwise.

3.18.8 Invalidity; Severability. If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.

3.18.9 Cooperation; Further Acts. The Parties shall fully cooperate with one another, and shall take any additional acts or sign any additional documents as may be necessary, appropriate or convenient to attain the purposes of this Agreement.

3.18.10 Attorney’s Fees. If either Party commences an action against the other Party, either legal, administrative or otherwise, arising out of or in connection with this Agreement, the prevailing Party in such litigation shall be entitled to have and recover from the losing Party reasonable attorney’s fees and all other costs of such action.

3.18.11 Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original.

3.18.12 Entire Agreement. This Agreement contains the entire Agreement of the Parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements. This Agreement may only be modified by a writing signed by both Parties.

3.18.13 Enforcement. City shall have the power to enforce this Agreement and no other person or entity shall have any right or power to enforce any provision of this Agreement on behalf of City, or to compel City to enforce any provision of this Agreement against Owner, the Project, the Property or any Residential Unit, including the Affordable Units. [SIGNATURES ON NEXT 2 PAGES]
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CITY’S SIGNATURE PAGE FOR

CITY OF CORONA
DENSITY BONUS HOUSING AGREEMENT – FOR-SALE HOUSING

WITH CONCORD ASSOCIATES, LP
(2501 GARRETSON AVENUE, CORONA CA 92880)
CMC CHAPTER 17.87
IN WITNESS WHEREOF, the Parties have entered into this Agreement as of the date first written above.

CITY OF CORONA
By: _________________________
Jacob Ellis
City Manager
Attest:
_________________________
Sylvia Edwards
City Clerk
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OWNER’S SIGNATURE PAGE FOR

CITY OF CORONA
DENSITY BONUS HOUSING AGREEMENT – FOR-SALE HOUSING

WITH CONCORD ASSOCIATES, LP
(2501 GARRETSON AVENUE, CORONA CA 92880)
CMC CHAPTER 17.87
IN WITNESS WHEREOF, the Parties have entered into this Agreement as of the date first written above.

CONCORD ASSOCIATES, L.P.
a California limited partnership
By: _________________________
Mike Riddlesperger
Chief Financial Officer
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EXHIBIT “A”

LEGAL DESCRIPTION AND DEPICTION

OF THE PROPERTY
Real property in the City of Corona, County of Riverside, State of California, described as follows:

PARCEL AS DESCRIBED ON LOT LINE ADJUSTMENT NO. 95-21, AS EVIDENCED BY DOCUMENT RECORDED FEBRUARY 05, 1996 AS INSTRUMENT NO. 042315 OF OFFICIAL RECORDS, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS:

LOT 182 OF DIVISION NO. 1 OF AMENDED MAP OF ORANGE HEIGHTS, AS SHOWN ON A MAP RECORDED IN BOOK 2, PAGE 1 OF MAPS, RECORDS OF RIVERSIDE COUNTY, IN THE CITY OF CORONA, STATE OF CALIFORNIA;
TOGETHER WITH, THAT PORTION OF SAID LOT 177 OF SAID DIVISION NO. 1 OF

AMENDED MAP OF ORANGE HEIGHTS, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS:

BEGINNING AT A POINT AT THE MOST NORTHWESTERLY CORNER OF SAID LOT 177;
THENCE SOUTHEASTERLY ALONG THE NORTHEASTERLY LINE OF SAID LOT 177, SOUTH 66° 45' 00” EAST, A DISTANCE OF 1.56 FEET;
THENCE SOUTHWESTERLY LEAVING SAID NORTHEASTERLY LINE OF LOT 177, SOUTH 31° 00' 18” WEST, A DISTANCE OF 108.47 FEET TO A POINT ON THE NORTHWESTERLY LINE OF SAID LOT 177;
THENCE NORTHEASTERLY ALONG SAID NORTHWESTERLY LINE OF LOT 177, NORTH 30° 11' 10" EAST, A DISTANCE OF 108.28 FEET TO THE POINT OF BEGINNING.
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EXHIBIT “B”

IDENTIFICATION OF AFFORDABLE UNITS
The Affordable Units subject to this Agreement are indicated in the table below. The Address or Lot Number in the table corresponds to the dwelling unit depicted in the Project floor plans on file with the City’s Planning and Development Department as of July 17, 2024.

NUMBER OF UNITS AND

UNIT TYPE

ADDRESS OR LOT
NUMBER

ELIGIBLE INCOME GROUP
Two (2) Four-Bedroom #12
#27
Very Low Income
Total: Two (2) Affordable Units

www.coxcastle.com Los Angeles | Orange County | San Francisco Cox, Castle & Nicholson LLP
50 California Street, Suite 3200
San Francisco, California 94111-4710
P: 415.262.5100 F: 415.262.5199
Linda C. Klein
415.262.5130
[email protected]
August 14, 2024
VIA E-MAIL: [email protected]
Ms. Rocio Lopez
Consulting Planner
City of Corona
400 South Vicentia Avenue, Suite 120
Corona, CA 92882
Re: Updated State Density Bonus Law Request
2501 Garretson Avenue (TTM2023-0002, PP2023-0009, AHDB2023-001) Dear Ms. Lopez:

The City has asked that we merge our August 8, 2024, list of requested State Density Bonus Law (“SDBL”) benefits with the housing law overview we provided in our July 16, 2024 letter. Accordingly, on behalf of Warmington Residential (“Warmington”), we are submitting this further updated letter related to the proposed residential project (“Project”) located at 2501 Garretson Avenue (“Property”) in the City of Corona (the “City”). This letter addresses SDBL, the Housing Accountability Act (“HAA”), and has four parts. Part 1 describes the SDBL benefits to which the Project is entitled. Part 2 summarizes the rules related to SDBL concessions/incentives1 and waivers. Part 3 identifies the requested SDBL benefits. Part 4 summarizes the HAA and addresses City comments that are not objective standards applicable to the Project under state law.

1. Project Eligibility For SDBL Benefits
SDBL provides four categories of benefits to projects providing the requisite amounts of affordable housing: (1) a density bonus; (2) incentives; (3) waivers; and (4) SDBL parking standards. The amount of the density bonus and number of incentives depends on the number of affordable units provided and their level of affordability.

The Property has a General Plan land use designation of Estate Residential, which allows 1 to 3 dwelling units per acre and is zoned R-20.0 Single-Family Residential (“R1-20 Zone”) and R-1-14.4 Single-Family Residential (“R1-14.4 Zone”). Under SDBL, the base density permitted on a parcel is “the greatest number of units allowed under the zoning ordinance, specific plan, or land use element of the general plan, or, if a range of density is permitted, means the greatest number of units allowed by the specific zoning range, specific plan, or land use element of the 1 SDBL uses the terms “concession” and “incentive” interchangeably. For readability, this letter uses “incentive” to refer to both.

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general plan applicable to the project.” (Gov. Code, § 65915, subd. (o)(6).) A “density bonus” is “a density increase over the otherwise maximum allowable gross residential density.” (Id., subd. (f).) “All density calculations resulting in fractional units shall be rounded up to the next whole number.” (Id., subd. (f)(5).) Using these directions, the Project’s base density is 28 units (9.326 acres x 3 dwelling units/acre).

At least six percent of the Project units (two units) would be affordable to very lowincome households. Therefore, the Project is eligible for SDBL benefits. (Gov. Code, § 65915, subd. (b)(1)(A).) These benefits consist of a 22.5 percent density bonus, one incentive, unlimited waivers, and use of SDBL parking standards. (Id., subds. (d)(2)(A), (e), (f)(2), (p).) The Project proposes a 22.5 percent density bonus, allowing 35 single-family homes and, as discussed in Section 3 below, multiple waivers.

2. SDBL Incentives, Waivers, And Process
a. Incentives
An incentive is a reduction in development standards or modification of zoning or architectural requirements, or any other regulatory incentive or concession proposed by the developer, that results in identifiable and actual cost reductions to provide for affordable housing costs. (Gov. Code, § 65915, subd. (k).) The California Department of Housing and Community Development (“HCD”) has taken the position that the SDBL “clearly indicates that requirements beyond development standards are eligible” as incentives, including “regulatory requirements,” provided that the request has identifiable and actual cost reductions. (HCD Letter of Inquiry and Technical Assistance to City of San Jose, dated Dec. 14, 2021, at p. 3.)2 Courts have explained that an applicant is not required to prove that a requested incentive or waiver would lead to cost reductions. Rather, specific requests are “presumed” to result in cost reductions, and an agency bears the burden to demonstrate otherwise if it intends to deny a request. (Bankers Hill 150 v. City of San Diego (2022) 74 Cal.App.5th 755, 770, citing Schreiber v. City of Los Angeles (2021) 69 Cal.App.5th 549, 555.) Likewise, while an applicant may be required to provide a basic explanation as to why a project is eligible to receive an incentive (e.g., drawings and the like), an agency cannot require preparation of a supporting report or study. (HCD Notice of Violation to City of Encinitas, dated Mar. 25, 2021, at pp. 3–4 [“The Legislature was clear that no additional studies, reports, or analysis were to be required.”]; see Assembly Bill (“AB”) 12873, effective January 1, 2024 [amending Gov. Code § 65915, subd. (a)(2) to remove “incentives or concessions” and “waivers or reductions of development standards” from the list of items for which a local government may request reasonable documentation].) Cost reductions, HCD has noted, “should be apparent from 2 Available at https://www.hcd.ca.gov/community-development/housing-element/docs/sclSanJose-LOI-TA121421.pdf. 3 https://leginfo.legislature.ca.gov/faces/billCompareClient.xhtml?bill_id=202320240AB1287&showamends=true [as AB 1287 amended SDBL].)

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the project application, thus negating any need for ‘financial analysis or report.’” (HCD Notice of Violation to City of Encinitas, dated Mar. 25, 2021, at pp. 3–4.) A local agency must grant an incentive unless it can make written findings, based on substantial evidence, according to certain specified statutory limitations. The only reasons to deny a requested incentive are if: (i) the incentive would not result in identifiable and actual cost reductions; (ii) the incentive would have a specific, adverse impact on public health and safety, and there is no feasible way to mitigate or avoid that impact without rendering the development unaffordable to low income and moderate income households; (iii) the incentive would have an adverse impact on any real property listed in the California Register of Historical Resources; or (iv) the incentive would be contrary to state or federal law. (Gov. Code, § 65915, subd. (d)(1).) b. Waivers
A waiver is “a waiver or reduction of development standards that will have the effect of physically precluding the construction of a development” entitled to benefits under SDBL. (Gov. Code, § 65915, subd. (e)(1).) “Development standard” is defined broadly as “a site or construction condition, including, but not limited to, a height limitation, a setback requirement, a floor area ratio, an onsite open-space requirement, or a parking ratio that applies to a residential development pursuant to any ordinance, general plan element, specific plan, charter, or other local condition, law, policy, resolution, or regulation that is adopted by the local government or that is enacted by the local government’s electorate exercising its local initiative or referendum power, whether that power is derived from the California Constitution, statute, or the charter or local ordinances of the local government.” (Id., subd. (o)(2).) Waivers can be requested for “any development standard that will have the effect of physically precluding the construction of a development” that meets the SDBL’s minimum affordable requirements “at the densities or with the concessions or incentives permitted by [SDBL].” (Id., subd. (e)(1).) An applicant is entitled to unlimited waivers. (Id.)
A local government may deny a requested waiver only under certain, limited circumstances. Specifically, denial is allowed only if granting the waiver “would have a specific, adverse impact . . . upon health or safety, and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact” or “would have an adverse impact on any real property that is listed in the California Register of Historical Resources, or to grant any waiver or reduction that would be contrary to state or federal law.” (Id.) Conditions that would have a specific, adverse impact upon the public health and safety “arise infrequently.” (Id.; Gov.

Code, § 65589.5, subd. (a)(3).)
According to HCD, to obtain a waiver, the “showing or ‘reasonable documentation’ required by the applicant is that the project qualifies for a density bonus.” (HCD’s Notice of Violation Letter to the City of Encinitas, dated Jan. 20, 2022.4) Stated differently “[a] project that meets the requirements of the [SDBL] is entitled to waivers if they are needed, ‘period.’” 4 Available at https://www.hcd.ca.gov/community-development/housing-element/docs/sdiEncinitas-NOV012022.pdf.

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(Id., quoting Wollmer v. City of Berkeley (2011) 193 Cal.App.4th 1329, 1346–1347; see Bankers Hill 150, supra, 74 Cal.App.5th 755, 775 [rejecting a claim that a project was not eligible for waivers because it could be redesigned to be more consistent with the city ’s development standards].)
In addition, HCD has clarified that a waiver must be granted if it is necessary to facilitate a requested incentive. (HCD Letter of Technical Assistance to the City of San Jose, dated May 20, 2022, at pp. 2–3.5) To illustrate the point, HCD provides an example in which an applicant seeks an incentive to remove the requirement for ground floor commercial space in a mixed-use zoning district and instead provide residential uses on the ground floor. Under such a scenario, an applicant can seek a waiver of ground floor transparency requirements because such requirements “would be incompatible” with the incentive allowing ground floor residential uses. (Id.) According to HCD, “these derivative waivers should be considered and approved in a perfunctory manner by the local agency.” (Id.)

3. SDBL Requests For The Project
The Project requests a density bonus and multiple waivers to City development standards, as follows:
a. Density Bonus
The Project is entitled to and requests a density bonus of 22.5 percent. The Project’s base density is 28 units (9.326 acres x 3 dwelling units/acre). At least six percent of the Project units (two units) would be affordable to very low-income households, providing a 22.5 percent density bonus, allowing for the Project’s 35 units. (Gov. Code, § 65915, subds. (b)(1)(A), (f)(2).) b. Waivers
i. Reduction in Minimum Lot Area
Municipal Code section 17.11.060 requires a minimum lot area of 20,000 square feet in the R1-20 Zone and Municipal Code section 17.20.060 requires a minimum lot area of 14,400 square feet in the R-1.14.4 Zone. Warmington requests a waiver to allow lot sizes ranging from 7,350 square feet to 19,674.25 square feet in these zones. This waiver is needed to fit the Project as designed and at the density proposed. Absent this waiver, parcels in the Project would need to be larger, reducing the overall number of parcels and thus density. ii. Reduction in Minimum Lot Width
Municipal Code section 17.11.070(A) requires a minimum lot width of 100 feet in the R1-20 Zone and Municipal Code section 17.20.070(A) requires a minimum lot width of 90 feet in the R-1.14.4 Zone. Warmington requests a waiver to allow a minimum lot width ranging from 70 feet to 177.56 feet in these zones. This waiver is needed to fit the Project as designed and at 5 Available at https://www.hcd.ca.gov/community-development/housing-element/docs/sclsanjose-ta-052022.pdf.

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the density proposed. Absent this waiver, parcels in the Project would need to be larger, reducing the overall number of parcels and thus density. iii. Reduction in Minimum Lot Depth
Municipal Code section 17.11.070(B) requires a minimum lot depth of 150 feet in the R1-20 Zone and a minimum lot depth of 100 feet in the R-1.14.4 Zone per Section 17.20.070(B).

Warmington requests a waiver to allow lot depths ranging from 93.76 feet to 120.39 feet in the Project. This waiver is needed to fit the Project as designed and at the density proposed. Absent this waiver, parcels in the Project would need to be larger, reducing the overall number of parcels and thus density.
iv. Reduction in Front Yard Setback
Municipal Code section 17.11.100(B)(1) requires a front yard setback of 25 feet in the R1-20 Zone and Municipal Code section 17.20.100(B)(1) requires the same front yard setback in the R1-14.4 Zone. Warmington requests a waiver to reduce the front yard setback ranging from 15 feet to 39.9 feet in both zones. This waiver is needed to fit the Project as designed and at the density proposed. Absent this waiver, parcels in the Project would need to be larger, reducing the overall number of parcels and thus density.
v. Reduction in Side-Yard Setback
In the R1-20 Zone, Municipal Code section 17.11.100(C)(1) requires a side yard of 10 feet for a lot with no alley access where the other side yard is at least 15 feet. Municipal Code section 17.20.100(C)(1) imposes the same requirement in the R1-14.4 Zone. Warmington requests a waiver to reduce the requirement from 10 feet to 5 feet in both zones. This waiver is needed to fit the Project as designed and at the density proposed. Absent this waiver, parcels in the Project would need to be larger, reducing the overall number of parcels and thus density. vi. Reduction in Corner Setback
In the R1-20 Zone, Municipal Code section 17.11.100(C)(2) requires a corner side yard setback of 15 feet. Warmington requests a waiver to reduce the requirement to 10 feet for Lots 19 and 35. This waiver is needed to fit the Project as designed and at the density proposed.

Absent this waiver, parcels in the Project would need to be larger, reducing the overall number of parcels and thus density.
vii. Reduction in Setback for Reverse Corner Lots
Municipal Code section 17.20.100(C)(5) requires reversed corner lots in the R1-14.4 zone to have a side yard on the street side with a width not less than the required front yard on the key lot to its rear which is 25 feet. Warmington requests a waiver to reduce the side yard setback for reverse corner lots to approximately 9 feet for Lot 28 and approximately 18 feet for Lot 26. This waiver is needed to fit the Project as designed and at the density proposed. Absent

Page 6 ends

this waiver, parcels in the Project would need to be larger, reducing the overall number of parcels and thus density.
viii. Reduction in Flag Lot Size
Municipal Code section 17.04.358(A) requires that flag lots be a minimum of 20,000 square feet. Warmington requests a waiver to reduce the minimum size of flag Lot 10 to 12,091.91 square feet. This waiver is needed to fit the Project as designed and at the density proposed. Absent this waiver, parcels in the Project would need to be larger, reducing the overall number of parcels and thus density.
ix. Reduction in Garage Setback
City Residential Design Guideline 4.1.B.5.a states: “Setback garages from the front of the dwelling by a minimum of 15 feet to create a more traditional street scene and diminish the appearance of the garage door.” Warmington requests a waiver to reduce this setback to a minimum of 2 feet from the front of the unit and eliminate this requirement from Plans 2 and 2R, where the one-car garage extends past the primary structure. This waiver is needed to fit the Project as designed and at the density proposed. Absent this waiver, garages would need to be moved towards the rear parcel line, which would move the back of the house back into the backyard and the rear property line would need to move back to avoid a reduction in the backyard. Ultimately, this would require parcels to be larger, reducing the overall number of parcels and thus density.
x. Two-Story Element Placement
City Residential Design Guideline 4.2.B.8 states: “The plotting of homes should avoid the placement of two, two-story elements directly adjacent to one another. Wherever possible, two-story elements should be adjacent to single story homes or single-story elements. If this cannot be achieved in a given situation, additional side yard separation and/or additional front setbacks shall be required to alleviate a row-house effect and provide greater privacy.” This is not an objective design standard. Nevertheless, Warmington requests a waiver to allow two twostory elements to be directly adjacent to one another and not to “flip” any plans for Lots 6 through 35. Absent this waiver, additional setbacks would be required, resulting in the need for larger lots, resulting in fewer lots and thus less density on the Property. xi. Deviations from City Standard 110 - Right-Of-Way Width, Parkway, Sidewalk, and Parking
The City’s published street design standards are contained in Series 100 and available on the City’s website. According to those standards, private street right-of-way widths must be consistent with Series 110.6 Series 110 states private streets with two-way access must consist of 6 Street Design Table, available at
https://www.coronaca.gov/home/showpublisheddocument/3724/636257066402770000.

Page 7 ends

a 56 feet wide right-of-way that includes a 10 feet wide parkway and within the parkway, a detached 5 feet wide sidewalk, 4.5 feet wide parkway landscape, and no curbside parking on both sides of the street.7 Warmington requests a waiver to reduce the minimum overall right-ofway width for the private street from 56 feet to 46 feet, comprised of 36 feet of roadway width, measured from curb to curb, and a five-foot wide sidewalk (including a six-inch curb) on both sides of the street. The 36 feet of roadway width allows for on-street parking along one side of the street. This waiver is needed to fit the Project as designed and at the density proposed.

Absent this waiver, the streets would need to be much wider, limiting the number of parcels that could fit on the Property and thus reducing density.
xii. Increase in Lot Area Coverage, R1-20 Zone
Municipal Code section 17.11.120 requires lot area coverage in the R1-20 zone to not exceed 35 percent for one-story and 30 percent for two-story buildings or structures.

Warmington requests a waiver to increase the maximum lot area coverage requirement of 30 percent for two-story buildings or structures, to up to 35 percent for Lots 18, 21, 33 and 34. This waiver is needed to fit the Project as designed and at the density proposed. Absent this waiver, parcels in the Project would need to be larger, reducing the overall number of parcels and thus density.
xiii. Increase in Lot Area Coverage, R1-14.4 Zone
Municipal Code section 17.20.120 also requires lot area coverage in the R1-14.4 Zone to not exceed 40 percent for one-story and 30 percent for two-story buildings or structures.

Warmington requests a waiver to increase the lot area coverage for the two-story homes ranging from 30 percent to up to 35 percent for Lots 7, 8, 9, 12, 14, 16, 21, 23, 27, 30, 31, 32, and 33.

This waiver is needed to fit the Project as designed and at the density proposed. Absent this waiver, parcels in the Project would need to be larger, reducing the overall number of parcels and thus density.
xiv. Reduction in Access Corridor Waiver for Flag Lots
Municipal Code section 17.04.358 requires that the access corridor of a flag lot have a depth not less than 80 feet in a residential zone. Warmington requests a waiver to reduce the access corridor depth distance to 43 feet for Lot 10. This waiver is needed to fit the Project as designed and at the density proposed. Absent this waiver, parcels in the Project would need to be larger, reducing the overall number of parcels and thus density. xv. Reduction in Lot Width for Lots on Knuckles or Curved Streets Municipal Code section 16.08.020 requires all lots fronting on a cul-de-sac, a knuckle, or a curved street to have at least a 45-foot distance at the curb line between property line prolongations. Warmington requests a waiver to reduce the curb line between property line 7 Available at https://www.coronaca.gov/home/showpublisheddocument/3744/636257066425870000.

Page 8 ends

prolongations of Lot 5 to approximately 27 feet and of Lot 11 to approximately 30 feet. This waiver is needed to fit the Project as designed and at the density proposed. Absent this waiver, parcels in the Project would need to be larger, reducing the overall number of parcels and thus density.
c. Reservation Of SDBL Benefits
As discussed above, the Project is entitled to one incentive and waivers of “any development standard that will have the effect of physically precluding the construction” of the Project. (Gov. Code, § 65915, subd. (e)(1).) Warmington reserves the right to request its incentive and additional waiver(s) of development standard(s) as needed to address comments as the Project application progresses.

4. Housing Accountability Act
a. Summary Of The HAA’s Rules Related To Objective Standards The HAA also applies to housing development projects and limits a local jurisdiction’s ability to deny or reduce the density of such projects when they are consistent with “applicable, objective general plan, zoning, and subdivision standards and criteria, including design review standards, in effect at the time that the application was deemed complete.” (Gov. Code, § 65589.5, subd. (j)(1) [emphasis added].) “Deemed complete” means “the applicant has submitted a preliminary application pursuant to [Government Code] Section 65941.1.” (§ 65589.5, subd. (h)(5).) The Project applicant submitted its preliminary application pursuant to Government Code section 65941.1 (i.e., SB 330 preliminary application) on August 4, 2023.

Under the HAA, a project that complies with applicable, objective standards can be denied or conditioned on lower density only if the project would have “a specific, adverse impact” on public health and safety and there is “no feasible method to satisfactorily mitigate” that impact other than disapproval or approval at a lower density. (Id.) A “specific, adverse impact” means “a significant, quantifiable, direct, and unavoidable impact, based on objective, identified written public health or safety standards, policies, or conditions as they existed on the date the application was deemed complete.” (Id.) Such impacts “arise infrequently” (id., subd. (a)(3)) and must be supported by “a preponderance of the evidence” (id., subd. (j)(1)).

The HAA defines “objective” as “involving no personal or subjective judgment by a public official and being uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official.” (Gov. Code, § 65589.5, subd. (h)(8) [emphasis added].) This definition of “objective” is reinforced by HAA subdivision (f)(4), which states a housing development project “shall be deemed consistent, compliant, and in conformity with an applicable plan, program, policy, ordinance, standard, requirement, or other similar provision if there is substantial evidence that would allow a reasonable person to conclude that the housing development project or emergency shelter is consistent, compliant, or in conformity.” In sum, if there are two different plausible views of a standard, the City must apply the view that supports housing.

Page 9 ends

(California Renters Legal Advocacy & Education Fund v. City of San Mateo (2021) 68 Cal.App.5th 820, 844–845 (“CARLA”).)
The HAA’s protections apply to the Project. Accordingly, the City can demand the Project comply with only objective, written standards (i.e., the objective standards not altered by the Project’s SDBL benefits) in effect when the Project applicant submitted its preliminary application.
b. Response To City Comments That Are Not Objective Standards The City’s comments on the full application include requests unrelated to objective standards. Specifically, the City requested that lots be aligned with the Property’s zoning districts. We were unable to find any requirement stating that a parcel can be in only one zoning district and indeed are aware of many parcels throughout the state that sit in more than one zoning district. The City also requested that models 1 and 2 be flipped so that homes differ in plotting to increase privacy and avoid windows facing each other. As noted above, the City’s Design Guidelines recommend avoiding the placement of two, two-story elements directly adjacent to one another. All the homes in the Project are separated by at least 13 feet and thus are not “directly adjacent” to each other. Further, the Design Guidelines recommend avoiding a “row house” effect. The separation between the homes achieves this—there is no mistaking the Project with a rowhouse project, where the units are attached to each other.8 * * *
Warmington is excited to bring much needed housing, including affordable housing, to the City and looks forward to working collaboratively on the Project. Please do not hesitate to contact me if you have any questions related to the SDBL.

Sincerely,
Linda C. Klein
Cc: Dean Derleth, Esq., City Attorney
Joanne Coletta, Planning and Development Director
8 See, e.g., https://www.thespruce.com/what-is-a-rowhouse-5180207. 104369\17824642


 










 


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5
:

C
> 
C>
 ]
98: 5C


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