Fountain Valley City Council
October 4, 2022

AGENDA

CITY COUNCIL/ SUCCESSOR

AGENCY TO THE FOUNTAIN

VALLEY AGENCY

FOR COMMUNITY DEVELOPMENT/

FOUNTAIN VALLEY HOUSING AUTHORITY
Closed Session 4:30 p.m.

Study Session 5:15 p.m.

Regular Meeting 6:00 p.m.

Tuesday, October 4, 2022
Council Chambers
10200 Slater Avenue
Fountain Valley, CA 92708
http://www.fountainvalley.org

MEETING ASSISTANCE: In compliance with the Americans with Disabilities Act, anyone needing special assistance to participate in a meeting of the government bodies listed herein should contact the City Clerk’s Office at (714) 593-4445. Notification 72 hours prior to the meeting allows the City to make reasonable arrangements to ensure accessibility to the meeting.

AGENDA COMMUNICATIONS: All revised or additional documents and writings related to an item on this agenda provided to all or a majority of the government body members after distribution of the agenda packet, are available for public inspection (1) in the City Clerk’s Office at 10200 Slater Avenue, Fountain Valley, CA 92708 during normal business hours; and (2) in the Council Chambers at the time of the meeting. Unless directed otherwise by a government body listed herein all actions shall be based on/memorialized by the latest document submitted as a late communication.

PUBLIC COMMENTS/PUBLIC HEARINGS: Persons wishing to address th e Cit y Counci lor othe r government body listed complete a speaker card and give it to the City Clerk prior to the public comment period. Requests to speak will not be accepted after the public comment session begins without permission of the Mayor/Chair. Speakers must limit remarks to a total of (3) three minutes and address the City Council through the Mayor. Comments to individuals or staff are not permitted. Scheduled Matters, including Public Hearings: Indicate on the card what item you want to address. Unscheduled Matters: Indicate on the card what subject matter you want to address. Comments must be related to issues that are within the jurisdiction of the governing body listed on the agenda. Pursuant to the Brown Act, the governing body may not enter into discussion regarding items not on the agenda.

CONSENT CALENDAR: All matters listed under the Consent Calendar are considered by the governing bodies listed herein to be routine and will be enacted on simultaneously with one motion without discussion unless separate action and/or discussion is requested by a governing body member, staff, or a member of the public.

PUBLIC HEARINGS: Persons wishing to speak in favor of or in opposition to a proposal are given an opportunity to do so during the public hearing. Those wishing to address a governing body during the hearing are requested to complete the speaker card and submit it to the City Clerk prior to the hearing. If a proposed action is challenged in court, there may be a limitation to raising only those issues raised during the hearing or in written correspondence received by the governing body at or before the hearing.

Note: The Fountain Valley City Council serves as the Successor Agency to the Fountain Valley Agency for Community Development (Successor Agency), the Fountain Valley Housing Authority, and the Fountain Valley Finance Authority. The Actions of the Successor Agency are separate and apart from the actions of the City Council.

ZOOM LINK INFORMATION
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• All public comments are allowed up to 3 minutes to speak.

Topic: City Council
Time: Oct 4, 2022 06:00 PM Pacific Time (US and Canada) Join Zoom Meeting
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CLOSED SESSION

CALL TO ORDER

PUBLIC COMMENTS
4:30 p.m.
(Closed Session matters Only)
Persons wishing to speak on a Closed Session matter are requested to identify themselves by completing a blue speaker card indicating the item they want to address and to give the card to the City Clerk prior to the public comment period. The City Clerk will call upon those that wish to speak.

1. CONFERENCE WITH LEGAL COUNSEL--EXISTING LITIGATION
Paragraph (1) of subdivision (d) of Section 54956.9
Names of cases:
• Auster, Randall v. Fountain Valley  (30-2020-01158809-CU-PA-CJC) • Barrett, Stephen v. Fountain Valley, Los Caballeros, et al (30-2021-01226466-CU-POCJC) • Dunne, David v. OC 405 (Fountain Valley) et al (30-2021-001219445-CU-PO-CJC) • Guirguis, Tahini v. RJ Noble (Fountain Valley) 30-2021-01220821-CU-PO-WJC • Hill, Stephen et al v. Fountain Valley et al (9th Circuit Court of Appeals - 21-55867) (State Court - 30-2021-01215714-CU-CR-CJC)
• Taylor, Devon v. Fountain Valley (30-2020-01155502)
• Sanzaro, Tilden v. Fountain Valley (30-2022-01244065)

2. CONFERENCE WITH LEGAL COUNSEL--ANTICIPATED LITIGATION Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of Section 54956.9:  (1 potential case) (threat of litigation by STRs re implementation of ban)

3. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Property: 13871 West Street, Garden Grove, CA
Agency negotiator: City Manager, Community Development Director, Interim Finance Director, Attorney for the City
Negotiating parties: Fountain Valley, Garden Grove, Westminster, West Street Investments LLC
Under negotiation: Price and Terms of Payment

CALL TO ORDER

PUBLIC COMMENTS

STUDY SESSION
5:15 p.m.
(Study Session matters only)
Persons wishing to speak on a Study Session matter are requested to identify themselves by completing a blue speaker card indicating the item they want to address and to give the card to the City Clerk prior to the public comment period.

1. Strategic Planning Objective – Diversity in Community Events; presented by Community Services Director Rob Frizzelle

2. Consideration of North Unincorporated County Island Annexation – Survey Results – Presented by Community Development Director – Omar Dadabhoy

OPEN SESSION
CALL TO ORDER 6:00 p.m.

INVOCATION
SALUTE TO THE FLAG Mayor Pro Tem Kim Constantine

CITY COUNCIL/SUCCESSOR AGENCY/HOUSING AUTHORITY/ ROLL CALL Council Members: Bui, Grandis, Vo, Mayor Pro Tem/Vice Chair Constantine, Mayor/Chair Harper

ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS

CITY MANAGER / MAYOR UPDATE

PRESENTATIONS

1. Advisory Committee for Persons with Disabilities Award Presentation

2. Frontier Project Update - Presented by HyeJin Lee, Public Works Director and Doug McAllister of Frontier

3. ICSC Western Conference Recap - Presentation by Meghan Wishner

FIRST CITY COUNCIL/ SUCCESSOR AGENCY/ HOUSING AUTHORITY/ PUBLIC COMMENTS (Unscheduled Matters Only)
The Unscheduled Matters Public Comments portion will last 15 Minutes at the beginning of the meeting. Any requests to speak on unscheduled matters after the initial 15 minutes, will be heard at the end of the meeting, unless the Mayor approves an extension of this time. If an individual speaks during the First unscheduled matters time period, they do not get to speak at the end of the meeting as well. Persons wishing to speak on an unscheduled matter are requested to identify themselves by completing a blue speaker and to give the card to the City Clerk. Each person will have up to 3 minutes to speak. The City Clerk will call upon those that wish to speak.

PUBLIC COMMENTS (Scheduled Matters Only)
Persons wishing to speak on Agenda item(s) are requested to identify themselves by completing a blue speaker card indicating the item they want to address and to give the card to the City Clerk prior to the public comment period. Each person will be given up to 3 minutes to speak on the entire Consent Calendar, 3 minutes to speak on each item pulled from the consent calendar, and 3 minutes to speak on any agendized item(s) not appearing on the Consent Calendar.

CONSENT CALENDAR
Consent Calendar Items 1 - 5 will be approved simultaneously with one motion, unless separate action/or discussion is requested.

1. Waive the reading in full of all ordinances under consideration and direct the Mayor to read by titles only.

2. Second Reading and Adoption of an Ordinance of the City Council of the City of Fountain Valley adding Section 12.08.105 to the Fountain Valley Municipal Code to prohibit feeding, disturbing, or having physical contact with wildlife on City property to reduce the presence of coyotes Page 6
Staff recommends that the City Council adopt the attached Ordinance of the City Council of the City of Fountain Valley adding Section 12.08.105 to the Fountain Valley Municipal Code to prohibit feeding, disturbing, or having physical contact with wildlife on City property to reduce the presence of coyotes.

3. Receive and File the Draft Minutes of the September 20, 2022 Regular City Council Meeting

4. Determination of Public Convenience or Necessity for the Issuance of a Type 20 Off-Sale Beer and Wine Liquor License Extra Mile Market Located at 17980 Magnolia Street Page 20 Staff recommends the City Council consider the information provided by G & M Oil Co. and approve the attached Resolution finding and determining that public convenience or necessity would be served by the issuance of a Type 20 off-sale beer and wine liquor license for the Extra Mile Market located at 17980 Magnolia Street.

5. Review Need for Continuing Local Emergency Due to the Omni Metals HazMat Fire – Fourth Review Page 47
Staff recommends that the City Council approve Alternative No. 1: Approve the continued need for the Proclamation of Local Emergency due to the Omni Metals HazMat Fire. This is the recommended action because remediation continues and the declaration of local emergency provides the City with additional liability protection, the ability to take extraordinary action of the need arises, and may provide additional advantages in seeking cost recovery.

PUBLIC HEARINGS
Each person will have up to 3 minutes to speak on each Public Hearing.

6. General Plan Amendment 22-02 - Adoption of the 2021-2029 Housing Element Update Page 50
Staff recommends the City Council approve Alternative #1: Adopt Resolution No. 22-26 (Attachment 2) finding that the Housing Element Update is exempt from the California Environmental Quality Act under the State CEQA Guidelines Section 15061(b)(3) (Common Sense Exemption) and recommending that the City Council adopt General Plan Amendment 22-02 approving a general plan amendment to adopt the 2021-2029 Housing Element Update.

7. Introduction and First Read of an Ordinance Declaring Existing Law that Short Term Rentals are Prohibited in the City of Fountain Valley and Increasing Administrative and Criminal Fines for Short-Term Rental and Building Code Violations Page 252 Staff makes no recommendation.

ADMINISTRATIVE ITEMS

8. Adopt Salary Resolution Providing Increase in Compensation for the City Manager Page 265 Staff is requesting City Council approval of Alternative No. 1 to approve the amended salary resolution increasing the City Manager’s base salary as shown on the attached resolution.

COUNCIL MEMBER ITEMS FOR FUTURE CONSIDERATION

CITY COUNCIL/ SUCCESSOR AGENCY/ HOUSING AUTHORITY/ PUBLIC COMMENTS (Unscheduled Matters Only)
Persons wishing to speak on an unscheduled matter are requested to identify themselves by completing a blue speaker and to give the card to the City Clerk. Each person will have up to 3 minutes to speak. The City Clerk will call upon those that wish to speak.

CITY COUNCIL/SUCCESSOR AGENCY/HOUSING AUTHORITY AB 1234/GENERAL

COMMENTS

ADJOURN THE MEETING OF THE CITY COUNCIL/SUCCESSOR

AGENCY/HOUSING AUTHORITY
The next Regular Meeting of the Fountain Valley City Council is October 18, 2022 at 6:00 p.m., in the Fountain Valley Council Chambers, 10200 Slater Avenue, Fountain Valley.

CITY OF FOUNTAIN VALLEY

CITY COUNCIL

COUNCIL ACTION REQUEST
To: Honorable Mayor and Agenda Date: October 4, 2022
Members of the City Council
SUBJECT: Second Reading and Adoption of an Ordinance of the City Council of the City of Fountain Valley adding Section 12.08.105 to the Fountain Valley Municipal Code to prohibit feeding, disturbing, or having physical contact with wildlife on City property to reduce the presence of coyotes
Three-Year Strategic Goals
☒ Enhance the culture and environment of “A Nice Place to Live” ☐ Attract and retain revenue producing businesses
☐ Achieve fiscal stability in accordance with the 20-Year Financial Plan ☐ Attract and retain quality staff
☐ Not applicable

EXECUTIVE SUMMARY
At its meeting on September 20, 2022, the City Council introduced for first reading an Ordinance adding Section 12.08.105 to the Fountain Valley Municipal Code to prohibit feeding, disturbing, or having physical contact with wildlife on City property to reduce the presence of coyotes. The Ordinance was approved during the first reading without amendment.

The Ordinance is now presented to the City Council for second reading and adoption.

RECOMMENDED ACTION
Staff recommends that the City Council adopt the attached Ordinance.

ENVIRONMENTAL ANALYSIS
This Ordinance is not subject to review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines sections 15061(b)(3) (there is no possibility the activity in question may have a significant effect on the environment).

FINANCIAL ANALYSIS
There is no fiscal impact with the adoption of the attached Ordinance or resolution.

City Council Request
Second Reading and Adoption of an Ordinance
December 13, 2016

ATTORNEY REVIEW:

The Attorney for the City has reviewed and approved the Ordinance.

PUBLIC NOTIFICATION
Public notice was published in the Orange County Register a minimum of 10 days prior to the public hearing on the first read of the ordinance. Public notice was also posted at City Hall, the Recreation Center, and the Fountain Valley Library. This second read has been agendized in compliance with the Ralph M. Brown Act.

ALTERNATIVES

1. Adopt the attached Ordinance of the City Council of the City of Fountain Valley adding Section 12.08.105 to the Fountain Valley Municipal Code to prohibit feeding, disturbing, or having physical contact with wildlife on City property to reduce the presence of coyotes.

2. Do not adopt the attached Ordinance.

3. Continue the item for further consideration.

RECOMMENDED ACTION
Staff recommends that the City Council adopt the attached Ordinance of the City Council of the City of Fountain Valley adding Section 12.08.105 to the Fountain Valley Municipal Code to prohibit feeding, disturbing, or having physical contact with wildlife on City property to reduce the presence of coyotes.

Prepared by: Colin Burns, Attorney for the City
Reviewed by: Matt Sheppard, Chief of Police
Fiscal Review by: Sherry Johnson, Interim Finance Director Approved By: Maggie Le, City Manager
Attachment No 1: Ordinance adding Section 12.08.105 to the Fountain Valley Municipal Code to prohibit feeding, disturbing, or having physical contact with wildlife on City property to reduce the presence of coyotes

1 ORDINANCE NO. _____

AN ORDINANCE OF THE CITY COUNCIL OF THE

CITY OF FOUNTAIN VALLEY ADDING SECTION

12.08.105 TO THE FOUNTAIN VALLEY MUNICIPAL

CODE TO PROHIBIT FEEDING, DISTURBING, OR

HAVING PHYSICAL CONTACT WITH WILDLIFE ON

CITY PROPERTY IN ORDER TO REDUCE THE

PRESENCE OF COYOTES
WHEREAS, coyotes present a danger to people and pets; and WHEREAS, the presence of coyotes in the City of Fountain Valley has increased over the past several years; and
WHEREAS, in a recent tragic incident, a child was attacked and bitten by a coyote in the County portion of Mile Square Regional Park, located within the corporate boundaries of the City of Fountain Valley; and
WHEREAS, feeding wildlife on City property has the effect of attracting coyotes into the City; and
WHEREAS, disturbing or having physical contact with wildlife is dangerous and can also attract coyotes into the City; and
WHEREAS, reducing the presence of coyotes will promote the health, safety and welfare of the community.

NOW, THEREFORE, the City Council of the City of Fountain Valley does hereby ORDAIN as follows:

Section 1. Section 12.08.105 of the Fountain Valley Municipal Code is added to read as follows:

12.08.105 Feeding Wildlife on City Property Prohibited. Unless specifically authorized by the Director of Community Services in writing, no person shall feed, disturb, or have physical contact with wildlife on city property.

Ordinance Adding FVMC 12.08.105
Code Amendment No.

2 Section 2. If any section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of the ordinance. The City Council declares that it would have passed this ordinance and each and every section, subsection, sentence, clause or phrase not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional.

Section 3. The City Clerk shall certify to the adoption of this Ordinance and cause it to be published as required by law.

PASSED AND ADOPTED by the City Council of the City of Fountain Valley at a regular meeting this _______ day of ______________, 2022.

ATTEST:
___________________________ _____________________________ Rick Miller Patrick Harper
City Clerk Mayor
APPROVED AS TO FORM:

HARPER & BURNS LLP
___________________________
Colin Burns
Attorney for the City

MINUTES OF THE

CITY COUNCIL/ SUCCESSOR AGENCY TO THE FOUNTAIN

VALLEY AGENCY

FOR COMMUNITY DEVELOPMENT/ FOUNTAIN VALLEY

HOUSING AUTHORITY
Closed Session 5:00 p.m.

Regular Meeting 6:00 p.m.

Tuesday, September 20, 2022
Council Chambers

CLOSED SESSION
CALL TO ORDER 4:30 p.m.

PUBLIC COMMENTS (Closed Session matters only)

1. CONFERENCE WITH LABOR NEGOTIATORS
Agency designated representatives: Mayor
Unrepresented employee: City Manager
No reportable action

2. CONFERENCE WITH LEGAL COUNSEL--ANTICIPATED LITIGATION Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of Section 54956.9:
(1 potential case - facts and circumstances unknown to potential plaintiffs) No reportable action

3. CONFERENCE WITH LEGAL COUNSEL--EXISTING LITIGATION
Paragraph (1) of subdivision (d) of Section 54956.9
Name of case:  WISP Federal Communications Commission WT Docket No. 19-270 The City Council voted 5-0 to settle

4. CONFERENCE WITH LEGAL COUNSEL--EXISTING LITIGATION
Paragraph (1) of subdivision (d) of Section 54956.9
Name of case: Gail Kaufmann v. City of Fountain Valley
The City Council voted 5-0 to settle

OPEN SESSION
CALL TO ORDER 6:00 p.m.

INVOCATION Mayor Patrick Harper
SALUTE TO THE FLAG Council Member Ted Bui

CITY COUNCIL/SUCCESSOR AGENCY/HOUSING AUTHORITY/ ROLL CALL Council Members: Bui, Grandis, Vo, Mayor Pro Tem/Vice Chair Constantine, Mayor/Chair Harper All members were present

CITY MANAGER / MAYOR UPDATES

ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS
There were no announcements

FIRST CITY COUNCIL/ SUCCESSOR AGENCY/ HOUSING AUTHORITY/ PUBLIC COMMENTS (Unscheduled Matters Only)
Katy Wright

CONSENT CALENDAR
Consent Calendar Items 1 – 8 & 10 were approved simultaneously.

1. Waive the reading in full of all ordinances under consideration and direct the Mayor to read by titles only.

ACTION: Move to waive the reading in full of all ordinances under consideration and direct the Mayor to read by titles only
MOTION: Vo SECOND: Constantine
AYES: Bui, Grandis, Vo, Constantine, Harper
NOES: None
ABSENT: None
ABSTAIN: None

2. Receive and File the Draft Minutes of the September 6, 2023 Regular City Council Meeting ACTION: Move to Receive and File the Draft Minutes of the September 6, 2023 Regular City Council Meeting
MOTION: Vo SECOND: Constantine

AYES: Bui, Grandis, Vo, Constantine, Harper
NOES: None
ABSENT: None
ABSTAIN: None

3. General Plan Advisory Committee (GPAC) Appointments
ACTION: Move to Approve the General Plan Advisory Committee (GPAC) Appointments MOTION: Vo SECOND: Constantine
AYES: Bui, Grandis, Vo, Constantine, Harper
NOES: None
ABSENT: None
ABSTAIN: None

4. City of Fountain Valley Six Month Strategic Objectives Update For August 23, 2022 through November 1, 2022
ACTION: Move to Approve the Six Month Strategic Objectives Update For August 23, 2022 through November 1, 2022
MOTION: Vo SECOND: Constantine
AYES: Bui, Grandis, Vo, Constantine, Harper
NOES: None
ABSENT: None
ABSTAIN: None

5. Fiscal Year 2021-22 Housing Authority Annual Report
ACTION: Move to Approve the Fiscal Year 2021-22 Housing Authority Annual Report MOTION: Vo SECOND: Constantine
AYES: Bui, Grandis, Vo, Constantine, Harper
NOES: None
ABSENT: None
ABSTAIN: None

6. Second Reading and Adoption of an Ordinance approving Code Amendment No. 22-02 – An Amendment to the Fountain Valley Municipal Code (FVMC) Sections 21.08.030, 21.10.030,

21.30.020, 21.22.040, and 21.90.020 as Required to Address Recent Changes in State Law Concerning the Regulation of Large Family Daycare Homes and to Update Regulations for Adult Day Care Centers

ACTION: Move to Approve the Second Reading and Adoption of an Ordinance approving Code Amendment No. 22-02 – An Amendment to the Fountain Valley Municipal Code (FVMC) Sections 21.08.030, 21.10.030, 21.30.020, 21.22.040, and

21.90.020 as Required to Address Recent Changes in State Law Concerning the Regulation of Large Family Daycare Homes and to Update Regulations for Adult Day Care Centers
MOTION: Vo SECOND: Constantine
AYES: Bui, Grandis, Vo, Constantine, Harper
NOES: None
ABSENT: None
ABSTAIN: None

7. Approve Amendment No. 4 to CON-16-52 with Cintas Corporation No. 2 for Uniform Rental, Laundry Services and Facility Services Products to extend the contract term one year ACTION: Move to Approve Amendment No. 4 to CON-16-52 with Cintas Corporation No. 2 for Uniform Rental, Laundry Services and Facility Services Products to extend the contract term one year
MOTION: Vo SECOND: Constantine
AYES: Bui, Grandis, Vo, Constantine, Harper
NOES: None
ABSENT: None
ABSTAIN: None

8. Orange County Grand Jury’s Investigative Report, Findings, and recommendations Regarding “How is Orange County Addressing Homelessness”
ACTION: Move to Approve Orange County Grand Jury’s Investigative Report, Findings, and recommendations Regarding “How is Orange County Addressing Homelessness”
MOTION: Vo SECOND: Constantine
AYES: Bui, Grandis, Vo, Constantine, Harper
NOES: None
ABSENT: None
ABSTAIN: None

9. Accept the Parcel Map No. 2021-113 for the Property Located at 18285-18375 Euclid Street ACTION: Move to Accept the Parcel Map No. 2021-113 for the Property Located at 18285- 18375 Euclid Street

MOTION: Bui SECOND: Grandis
AYES: Bui, Grandis, Vo, Constantine, Harper
NOES: None
ABSENT: None
ABSTAIN: None

10. Approve a resolution to accept Office of Traffic Safety STEP grant money ACTION: Move to Approve a resolution to accept Office of Traffic Safety STEP grant money
MOTION: Vo SECOND: Constantine
AYES: Bui, Grandis, Vo, Constantine, Harper
NOES: None
ABSENT: None
ABSTAIN: None

PUBLIC HEARINGS

11. First Read and Approval of an Ordinance approving a categorical exemption per the California Environmental Quality Act (CEQA) and code amendment to (1) amend the development code to allow conditionally permitted short-term rentals in the R-1 and GH districts; (2) add Chapter 4.95 to the Municipal Code regulating short-term rentals; (3) amend section 1.13.070 of the Municipal Code to increase administrative fines for short-term rental property and building code violations; and (4) amend section 1.16.010 of the Municipal Code to increase criminal fines for short-term rental property and building code violations Public Hearing Opened: 6:44 p.m.

Comments: Adam Palermo, Marcella Sakert, Jaye Towne, Darrel Mymon Brown, Sandy Strech, Evan Jorgensen, Judy Holbrook, Ted Burnett, Lee T., Peter Hanna, Pam Van Laningham, Richard Hoffstadt, Lisa Sanders, Michael Mau, Pete Finnerty, Kareem Abdo, Anna Katsuki, Cindy Helliwell, Eileen Asahi, Mike Thompson, Katy Wright, Susan Castellanos, Nruce Bauer, Janey Huynh, Glenn Bleiweis, Michelle Nguyen, Jose Wencer, Stephen Schwarz, Cindy Cao, Rocky Herrera, Travis terich, Edward Trujillo, John Nguyen, Richard Stewman,
Comments Via Zoom: Rudy Huebner, Allison Kirste, Valerie Trueblood, Augie Lascola, Anne Bettinger, Rick Nguyen, Pascale Saliba
Public hearing Closed at 8:33 p.m.

The City Council took a brief recess from 8:33 p.m. – 8:40 p.m.

ACTION: Move to Approve a ban on all Short Term Rentals and to have an ordinance brought back to formalize the ban on Short Term Rentals.

MOTION: Vo SECOND: Grandis
AYES: Bui, Grandis, Vo, Constantine, Harper
NOES: None
ABSENT: None
ABSTAIN: None

12. Item 12 was heard prior to item 11 on the agenda
Public Hearing FY 2021-22 Community Development Block Grant Consolidated Annual Performance and Evaluation Report
Public Hearing Opened: 6:17 p.m.

No Public Comments
Public Hearing Closed: 6:18 p.m.

ACTION: Move to Approve the FY 2021-22 Community Development Block Grant Consolidated Annual Performance and Evaluation Report
MOTION: Vo SECOND: Grandis
AYES: Bui, Grandis, Vo, Constantine, Harper
NOES: None
ABSENT: None
ABSTAIN: None

13. First Read and Introduction of an Ordinance of the City Council of the City of Fountain Valley Adding Section 12.08.105 to the Fountain Valley Municipal Code to Prohibit Feeding, Disturbing, or Having Physical Contact with Wildlife on City Property to Reduce the Presence of Coyotes
Public Hearing Opened: 9:10 p.m.

Stephen Schwarz
Public Hearing Closed: 9:11 p.m.

ACTION: Move to Approve the First Read and Introduction of an Ordinance of the City Council of the City of Fountain Valley Adding Section 12.08.105 to the Fountain Valley Municipal Code to Prohibit Feeding, Disturbing, or Having Physical

Contact with Wildlife on City Property to Reduce the Presence of Coyotes MOTION: Vo SECOND: Constantine
AYES: Bui, Grandis, Vo, Constantine, Harper
NOES: None
ABSENT: None
ABSTAIN: None

ADMINISTRATIVE ITEMS

14. Adopt a Resolution Amending the City’s Salary Schedule, and Approving an Amendment to the Memoranda of Understanding for the Fountain Valley Professional and Technical Unit (“P&T”), relating to Wages, Hours, Terms and Conditions of Employment ACTION: Move to Adopt a Resolution Amending the City’s Salary Schedule, and Approving an Amendment to the Memoranda of Understanding for the Fountain Valley Professional and Technical Unit (“P&T”), relating to Wages, Hours, Terms and Conditions of Employment
MOTION: Vo SECOND: Grandis
AYES: Bui, Grandis, Vo, Constantine, Harper
NOES: None
ABSENT: None
ABSTAIN: None

15. Approval of the FY 2022/23 Statement of Investment Policy ACTION: Move to Approve the FY 2022/23 Statement of Investment Policy MOTION: Harper SECOND: Constantine
AYES: Bui, Grandis, Vo, Constantine, Harper
NOES: None
ABSENT: None
ABSTAIN: None

16. 1) Amend the FY 2022/23 Fleet Capital budget in the amount of $36,500; 2) Waive the bidding requirements pursuant to FVMC 2.36.070 Par 4 and authorize staff to issue a purchase order to National Auto Fleet Group for the purchase of four (4) new 2023 Ford Police Interceptor Utility Non-Hybrid Patrol Units for $194,919.10 through the existing cooperative contract with Sourcewell; and
3) Authorize staff to dispose of the existing vehicles by means that best meet the City’s needs

ACTION: Move to Approve: 1) Amend the FY 2022/23 Fleet Capital budget in the amount of $36,500; 2) Waive the bidding requirements pursuant to FVMC 2.36.070 Par 4 and authorize staff to issue a purchase order to National Auto Fleet Group for the purchase of four (4) new 2023 Ford Police Interceptor Utility Non-Hybrid Patrol Units for $194,919.10 through the existing cooperative contract with Sourcewell; and
3) Authorize staff to dispose of the existing vehicles by means that best meet the City’s needs
MOTION: Vo SECOND: Grandis
AYES: Bui, Grandis, Vo, Constantine, Harper
NOES: None
ABSENT: None
ABSTAIN: None

17. Amend 2 CON-19-28 Sports Park, Parks and Civic Facilities Landscape Maintenance - additional turf renovation and chemical application
ACTION: Move to Approve Amendment 2 CON-19-28 Sports Park, Parks and Civic Facilities Landscape Maintenance - additional turf renovation and chemical application
MOTION: Vo SECOND: Constantine
AYES: Bui, Grandis, Vo, Constantine, Harper
NOES: None
ABSENT: None
ABSTAIN: None
Public Comment – Katy Wright

18. Arterial Street Rehabilitation and Resurfacing - Heil Avenue from Euclid Street to Harbor Blvd and Ward Street from Edinger Avenue to North City Limits, Project No. 2422221006 (TI277) ACTION: Move to Approve Arterial Street Rehabilitation and Resurfacing - Heil Avenue from Euclid Street to Harbor Blvd and Ward Street from Edinger Avenue to North City Limits, Project No. 2422221006 (TI277)
MOTION: Vo SECOND: Constantine
AYES: Bui, Grandis, Vo, Constantine, Harper
NOES: None
ABSENT: None
ABSTAIN: None

COUNCIL MEMBER ITEMS FOR FUTURE CONSIDERATION
Mayor Pro Tem Constantine requested that the City Council look at Residential Parking. There was no second.

CITY COUNCIL/ SUCCESSOR AGENCY/ HOUSING AUTHORITY/ PUBLIC COMMENTS (Unscheduled Matters Only)
Katy Wright, Stephen Schwarz
CITY COUNCIL/SUCCESSOR AGENCY/HOUSING AUTHORITY AB 1234/GENERAL COMMENTS Council Member Bui
No report was provided
Council Member Vo
Had no report to provide
Council Member Grandis
September 7 Attended the FVPD Swearing in Ceremony
September 8 Attended the Cal Cities Annual Conference
September 9-11 Attended the Lobsterfest
September 13 Attended the Chamber Candidate Forum and the Summerfest Committee meeting September 16 Attended a meeting with Public Works to discuss some water issues in the city September 17 Was the Emcee for the Fountain Valley Rotary Volunteer of the Year Award – presented to Susan Saurastri
September 20 Attended another Chamber of Commerce City Council Candidate Forum Mayor Pro Tem Constantine
September 7 Attended the Police Badge Ceremony at City Hall September 8 Volunteered for the Friends of the Library in the Bookstore pulling books for the next book sale.

September 9 Attended the movie at the FV Senior Center, then attended the Lobster Festival at Mile Square Park
September 10 Attended the Moon Festival at Mile Square Park, then the Lobster Festival at Mile Square Park.

September 11 Attended the Holy Spirit Catholic Church Family Picnic at Green Valley Park, then the Lobster Festival at Mile Square Park.

September 13 Attended the Rotary Meeting at the FV Senior Center in which FVPD Detectives Marquez and Hughes gave an Police Explorer Presentation, then watched the OC Board of Supervisors Meeting on the County’s website, watched the CA Assembly Member Janet Nguyen Legislative Update on Zoom, then attended the Western Luncheon for senior citizens at the FV Senior Center, then attended the first Chamber of Commerce Candidates Luncheon at Cambalache.

September 14 Attended the Chamber of Commerce Referral Roundup at Stonefire Grill, then watched the ACWA Leadership to Leadership Listening Session – Region 10 on Zoom, then attended the Planning Commission Meeting at City Hall September 15 Watched the Hate Crime Release Report Webinar on Zoom, then participated in the OC Mosquito and Vector Control Board Meeting.

September 16 Attended the OC Water Summit at the Grand Californian Hotel & Spa in Anaheim, then stopped in at See’s Candy on their grand reopening day.

September 17 Attended the 2nd Annual Sunset Classic Car Show and Concert at Mile Square Park.

September 20 Attended the Rotary Meeting at the FV Senior Center in which our Fire Chief Ron Cookston gave a Presentation about Covid, then participated in the FV Chamber of Commerce “Meet the Candidates” Luncheon at Amarith Café.

Mayor Harper
September 7-9 Attended the Cal Cities Conference
September 8 Attended the OCTA Transit meeting
September 12 Attended the OCTA Board Meeting
September 14 Attended the OCTA Finance Committee Meeting and the Admin Committee meeting
September 16 Attended the Sees Candies GrandOpening
September 17 Attended the Rotary event honoring Susan Saurastri

ADJOURN THE MEETING OF THE CITY COUNCIL/SUCCESSOR AGENCY/HOUSING

AUTHORITY

Mayor Harper adjourned the meeting at 9:54 pm to the next Meeting of the Fountain Valley City Council on October 4, 2022 at 6:00 p.m., in the Fountain Valley Council Chambers, 10200 Slater Avenue, Fountain Valley.
________________________________________________________________________________________________________________________________ Patrick Harper, Mayor
Attest:
___________________________
Rick Miller, City Clerk

CITY OF FOUNTAIN VALLEY

CITY COUNCIL

COUNCIL ACTION REQUEST
To: Honorable Mayor and Agenda Date: October 4, 2022
Members of the City Council
SUBJECT: Determination of Public Convenience or Necessity for the Issuance of a Type 20 Off-Sale Beer and Wine Liquor License Extra Mile Market Located at 17980 Magnolia Street
Three-Year Strategic Goals
☐ Enhance the culture and environment of “A Nice Place to Live” ☐ Attract and retain revenue producing businesses
☒ Achieve fiscal stability in accordance with the 20-Year Financial Plan ☐ Attract and retain quality staff
☐ Not applicable
EXECUTIVE SUMMARY:

G & M Oil Co. has submitted a request to allow for the sales of beer and wine for off-site consumption (Type 20 license) for the Extra Mile Market gas station located at 17980 Magnolia Street (Attachment #1).

On September 14, 2022, the Planning Commission approved Conditional Use Permit (CUP) No. 1411-M for a Type 20 license for Extra Mile Market. CUP 1411-M for the Type 20 license is subject to Public Convenience or Necessity approval from the City Council due to an overconcentration of off-sale liquor licenses in Census Tract 992.34, as defined in the Business and Professions Code Section 23958.

Staff recommends the City Council consider the information provided by G & M Oil Co and approve the attached Resolution finding and determining that public convenience or necessity would be served by the issuance of a Type 20 license for the Extra Mile Market located at 17980 Magnolia Street.

DISCUSSION:

On September 14, 2022 the Planning Commission approved CUP No. 1411-M for Extra Mile Market Type 20 license subject to a finding of public convenience or necessity (PCN) approval from the City Council (Attachment #1 and #2). Within the Extra Mile Market, the area of alcohol sales will occupy three existing beverage coolers. The display area will be located near the back of the store as depicted on the floor plan (Attachment #5). As outlined in the applicant’s Project Description Letter (Attachment #6), Extra Mile Market proposes to be open

Council Action Request – Extra Mile Market Finding for PCN October 4, 2022

24 hours a day, seven (7) days a week and alcohol sales will be limited to 6:00 am to 2:00 am, seven (7) days a week. There will be two (2) employees on site at all times. All of their register clerks will be trained in proper alcoholic beverage sales rules, including use of Pointof-Sale required identification age verification. All clerks will be required to read and sign the Alcoholic Beverage Control’s Clerk’s Affidavit and the affidavits will be kept on file by the store operator. In addition to the request for beer and wine, Extra Mile Market will continue to offer the existing assortment of none-alcoholic beverages, snacks, and dry goods.

The finding of PCN is required as the Department of Alcohol Beverage Control (ABC) has determined the census tract in which Extra Mile Market is located in is over-concentrated with off-sale liquor licenses as defined in the Business and Professions Code Section 23958.

Pursuant to State Law, the Department of Beverage Control will deny an application for an off-sale liquor license if the issuance of the licenses would tend to create a law enforcement problem or if the issuance would result in or add to an undue concentration of licenses, except as provided by State Law. Undue concentration is based on a ratio of the number of existing off-sale liquor licenses and the number of residents in a given census tract.

The Census Tract where the proposed Extra Mile Market is located, Census Tract 992.34, has a limit of two (2) off-sale liquor licenses before its considered over-concentrated.

Currently, the Census Tract has five (6) licenses (Rite Aid on the corner of Magnolia and Talbert, CVS pharmacy on the corner of Magnolia and Warner, ALDI on the corner of Magnolia and Warner, Sunrise Market on the corner of Warner and Bushard, Circle K and the corner of Warner and Magnolia, and Spouts at Talbert and Magnolia). As the existing count is over concentrated, and Extra Mile Market is requesting approval of a Type 20 license, approval of a finding of PCN is subject to review and approval of the City Council.

The following Table (Table 1: Existing off-sale licenses) is a summary of existing off-sale licenses in Census Tract No. 992.34 (Attachment #3 and #4).

Table 1: Existing off-sale licenses
Business Address License Type
Rite Aide 17904 Magnolia 21
CVS
Pharmacy
17136 Magnolia 21
Aldi 17070 Magnolia 20
Sunrise
Market
9380 Warner 21
Circle K 9024 Warner 20
Sprouts 17950 Magnolia 21
Pursuant to Government Code 23958.4.b.2, the local governing body or their designated body may determine within 90 days of a completed application being filed that PCN would be served. On June 27, 2022 G & M Oil Co. submitted a written request that the City Council make a finding of PCN based on the applicants supporting findings. The City Council of the City of Fountain Valley has historically been the governing body that hears such PCN requests. Therefore, this request requires City Council review.

In order for Extra Mile Market to obtain a Type 20 license, the City Council must make a determination that the number of permitted off-sale liquor licenses can be exceeded based

Council Action Request – Extra Mile Market Finding for PCN October 4, 2022

on a finding of PCN. If the City Council makes the finding, ABC will issue the license.

State law requires that the burden of proof is on the applicant to demonstrate to ABC, or, the local governing body, how Public Convenience OR Necessity will be served by the new retail outlet. Note the “OR” in the PCN; the applicant does not need to prove both elements – just demonstrate one of the elements is enough to meet the burden of proof. Such examples have been used to justify granting a PCN:
 The applicant demonstrates how the proposed use will not be detrimental to the character of development in the immediate neighborhood and will be in harmony with the overall objectives of the General Plan.
 The applicant demonstrates the economic benefit outweighs the negative impacts to the community as a whole.
 The issuance of the license will provide a needed service not currently being met in the community.
 Identify the special and unusual circumstances present here to justify a new retail alcohol outlet when there are already similar alcohol uses exist nearby.  Provide information that the applicant cannot operate profitably without a liquor license.
 The business provides a wide variety of items for sale in addition to alcohol and will provide a convenient location for the public to shop for necessities while also purchasing alcohol.
 Local police conclude there would not be an increase in criminal activity.  Subject use is consistent with applicable zoning regulations.  Demonstrate reasonable efforts to seek community input.

G & M Oil Co. has submitted a justification letter for public convenience for the Type 20 license. G & M Oil Co has stated that they are fully aware of the unique responsibilities of operating a store associated with alcoholic beverage sales and have had no significant issues raised by local law enforcement agencies with respect to alcoholic products or public disturbances associated with the sale of alcohol products.

Extra Mile Market is proposing to sell beer and wine within an existing 2,092 sq. ft. retail store associated with an existing gas station located at 17980 Magnolia Street (Attachment #5).

This convenience is imperative to Extra Mile Market’s ability to serve and attract new customers.

G & M Oil Co.’s submitted justification statements to support their PCN request are shown below and attached in Attachment #6.

Justification Statements Provide by Applicant
Request:

This request is for a Conditional Use Permit to allow the sale of beer and wine for off-site consumption only; in conjunction with an existing 2,092 square foot convenience market with a gas station; with the hours of operation being 24 hours a day, 7 days a week and alcohol sales from 6:00 am to 2:00 am, 7 days a week, in the C-1 zone. There will be at least 2 employees on site at all times

Council Action Request – Extra Mile Market Finding for PCN October 4, 2022

The subject premises is located within the Local Business (C-1) land use zone on the North East corner of Talbert Avenue and Magnolia Street and is ideally situated to serve the population of residents, workers and visitors who patronize this popular business corridor. The Local Business land use zone allows for a wide range of activities which include automotive related businesses and retail commercial development with parking in the front or side of the building. These zones are applied to accommodate existing development patterns or encourage patterns that are deemed to be appropriate because of the urban design features anticipated for the area. The focus is on automobile - oriented establishments where the primary commercial function is geared to a single stop activity. This request is a permitted use within the general plan and will not change the site's ability to conform to any elements or objectives of the development code.

This is an existing business and the proposed use will not adversely affect the surrounding community or neighboring properties. The surrounding properties are developed with commercial, service-related and retail uses. The requested use adds to the diversification of uses within this established business and should remain in proper relation to the adjacent uses. The instant request is an organic extension of the current surrounding uses and will therefore remain in appropriate relation to the contiguous uses and ongoing development of the community.

This location has sufficient parking lot lighting, a state of the art security system and crime deterrence program that helps ensure the peace, comfort and welfare of its customers and the surrounding community. In addition, we have a zero tolerance loitering program in front of our store to protect our customers or any passer-by. The approval of this project will allow the applicant to offer the community a variety of products at one convenient stop.

The sale of beer and wine will be incidental in our convenience store as we provide a variety of products to serve those who live and work nearby. The addition of beer and wine will permit our neighbors to patronize a local establishment rather than drive elsewhere. Our store also offers packaged items, fresh food, hot food, dairy products, fruits, breads, a coffee station, beauty products and other essential products used for daily living.

This existing business has only enhanced this part of the community. The proposed request will allow the applicant to include beer and wine in a wellmaintained site. The proposed use will not change the noise impact or traffic as this business has been here for many years; it will instead offer a different shopping environment, different services and a different mix of merchandise.

The surrounding properties will not be affected by allowing this inclusion of beer and wine to their beverage department at a neighborhood market.

The subject premises is bounded on all sides by commercially developed properties and is well-buffered from nearby, residentially zoned and occupied properties and will be secured by alarm and interior and exterior cameras.

Council Action Request – Extra Mile Market Finding for PCN October 4, 2022

The subject property is a level, rectangular-shaped corner lot with a frontage along Magnolia Avenue and Talbert Avenue. The site is developed with an existing Chevron gas station and with an "Extra Mile" convenience market.

Vehicular access is via one wide driveway on Magnolia and one wide driveway on Talbert Avenue leading to 7 surface parking spaces. This site is ideally situated to serve the population of residents, workers and travelers in this part of the City. This site is comprised of lot that equals 22,079 square feet or .5059 acres.

The surrounding uses are as follows:

North:

Large shopping Center, a commercial center with general and Firestone automotive repair shop, and retail strip center with restaurants, general office, major retailer center.

South:

Retail shopping center with Rite Aid and Big lots, retail shops and service oriented businesses.

East:

Retail shopping center with Car Wash, retail shops and service oriented businesses.

West:

Beri Brothers Center, retail shopping center and service oriented businesses.

Staff does not anticipate any changes in traffic or parking due to the addition of the Type 20 license. The convenience market at this gas station is an existing business and has operated at this site since 1988. Additionally, the Police Department has reviewed and has no objection to the request. Lastly, Conditions of Approval # 36 will help mitigate any negative impacts the proposed use will have on the surrounding area. With these conditions of approval, along with the others outlined in Resolution #22-24 (Attachment #4), staff supports the request as submitted.

POLICE DEPARTMENT:

The Fountain Valley Police Department supported the applicant’s CUP request that was approved by the Planning Commission on September 14, 2022, with Police Department recommended conditions of approval as shown in Attachment 2. In addition to their support for the applicant’s CUP request, the Police Department also supports the applicant’s request for PCN and does not anticipate that this license will lead to a law enforcement problem or an increase in crime in the area.

ENVIRONMENTAL REVIEW:

This request is not subject to review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines. The request for determination of Public Convenience or

Council Action Request – Extra Mile Market Finding for PCN October 4, 2022

Necessity is exempt from California Environmental Quality Act (CEQA) review under §15061(b)(3) of the CEQA Guidelines because a determination of Public Convenience or Necessity will not with reasonable certainty have any possible effect on the environment.

FINANCIAL REVIEW:

There is no financial impact resulting from this action. The applicant has paid the $1,665 filing fee to reimburse the City for the cost to process the request for a Finding of Public Convenience or Necessity.

PUBLIC NOTIFICATION:

Public notification is not required for a finding of Public Convenience or Necessity.

ATTORNEY REVIEW:

The City Attorney has reviewed the draft Resolution and has approved to form.

ALTERNATIVES:

Alternative No. 1 Adopt a Resolution approving a request of PCN determination for Type 20 off-sale beer and wine liquor license for Extra Mile Market.

Alternative No. 2: Adopt a modified Resolution approving a request of PCN determination for Type 20 off-sale beer and wine liquor license for Extra Mile Market.

Alternative No. 3: Continue the request for additional information.

RECOMMENDATION:

Staff recommends the City Council consider the information provided by G & M Oil Co. and approve the attached Resolution (Attachment #7) finding and determining that public convenience or necessity would be served by the issuance of a Type 20 off-sale beer and wine liquor license for the Extra Mile Market located at 17980 Magnolia Street.

Prepared By: Ron Vargas, Assistant Planner
Reviewed By: Omar Dadabhoy, Deputy City Manager/ Deputy City Manager Fiscal Review by: Sherry Johnson, Interim Finance Director Approved By: Maggie Le, City Manager
Attachment 1: Planning Commission Minutes of September 14, 2022 Attachment 2: Planning Commission Resolution No. 22-24 for CUP No. 1411-M Attachment 3: California Department of Alcoholic Beverage Control Off-Sale Licenses for Census Tract 992.34 Report
Attachment 4: Map of Off-Sale ABC Licenses in Census Tract 992.34

Council Action Request – Extra Mile Market Finding for PCN October 4, 2022

Attachment 5: Floor Plan for Extra Mile Market
Attachment 6: Justification Letter from Extra Mile Market Attachment 7: City Council Resolution No.

CITY OF FOUNTAIN VALLEY PLANNING COMMISSION MINUTES

CITY HALL COUNCIL CHAMBERS
10200 SLATER AVENUE
WEDNESDAY, SEPTEMBER 14, 2022 – 6:00 P.M.

REGULAR MEETING
CALL TO ORDER: Chair Osborn called the meeting to order at 6:00 p.m.

SALUTE TO THE FLAG: Chair Osborn led the flag salute.

ROLL CALL:

PRESENT: Esquer, Lopez, Spear, Vice-Chair Saad, Chair Osborn ABSENT: Farrell

ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS
 Agenda Item #5 – Public Comments received via email forwarded to Planning Commissioners

CONSENT CALENDAR

1. Receive and file the minutes of the August 31, 2022 Planning Commission Study Session Meeting, as presented.

Action: Approve the minutes of the August 31, 2022 Planning Commission Study Session Meeting, as presented.

Motion: Saad Second: Spear
AYES: Esquer, Lopez, Spear, Saad, Osborn
NAYS: None.

ABSTAIN: None.

2. Receive and file the minutes of the August 10, 2022 Planning Commission Meeting, as presented.

Action: Approve the minutes of the August 10, 2022 Planning Commission Meeting, as presented.

Motion: Spear Second: Saad
AYES: Esquer, Lopez, Spear, Saad, Osborn
NAYS: None.

ABSTAIN: None.

PUBLIC HEARINGS

3. Conditional Use Permit 1411-M – Extra Mile Gas Station Type 20 ABC Liquor License Application submitted by G & M Oil Co., to modify an existing Conditional Use Permit to sell beer and wine (Type 20) at an existing gas station convenience store located at 17980 Magnolia Street. The request is exempt from environmental review pursuant to CEQA Guidelines Section 15301.

Planning Commission Meeting Minutes
September 14, 2022

Chair Osborn opened the public hearing. Assistant Planner presented the staff report. The applicant Sherry Olson on behalf of G & M Oil was present. With no one in the audience wishing to speak on this item, Chair Osborn closed the public hearing.

Action: Alternative #1 – Adopt Resolution No. 22-24 adopting a Notice of Exemption in accordance with the California Environmental Quality Act (CEQA) and approving Conditional Use Permit No. 1411-M to allow for the sales of beer, wine for off-site consumption (Type 20 ABC License) for the Extra Mile Market located at 17980 Magnolia Street.

Motion: Lopez Second: Esquer
AYES: Esquer, Lopez, Spear, Saad, Osborn
NAYS: None.

ABSTAIN: None.

4. Conditional Use Permit 1748M-A – ROL Restaurant Type 41 ABC Liquor License Application submitted by Vinh Le to modify an existing Conditional Use Permit to sell beer and wine (Type 41) at an existing restaurant located at 16173 Brookhurst Street. The request is exempt from environmental review pursuant to CEQA Guidelines Section 15301.

Chair Osborn opened the public hearing. Assistant Planner Rob Vargas presented the staff report. With no one in the audience wishing to speak on this item, Chair Osborn closed the public hearing.

Action: Alternative #1: Adopt Resolution No. 22-25 adopting a Notice of Exemption in accordance with the California Environmental Quality Act (CEQA) and approving Conditional Use Permit No. 1748M-A to modify an existing conditional use permit to add a Type 41 liquor license, and modify operating hours to 11:00 a.m. to 11:00 p.m., seven (7) days per week for ROL Restaurant located at 16173 Brookhurst Street.

Motion: Spear Second: Saad
AYES: Esquer, Lopez, Spear, Saad, Osborn
NAYS: None.

ABSTAIN: None.

5. Code Amendment No. 22-05 – An Amendment to the Fountain Valley Municipal Code (FVMC) To Allow And Regulate Short Term Rentals in the R1 and GH Zones Review and adopt a resolution making a recommendation to the City Council to approve a categorical exemption per the California Environmental Quality Act (CEQA) and approve a code amendment to (1) amend the development code to allow conditionally permitted short term rentals in the r-1 and gh districts; (2) add chapter 4.95 to the municipal code regulating short term rentals; (3) amend section 1.13.070 of the municipal code to increase administrative fines for short-term rental property and building code violations; and (4) amend section 1.16.010 of the municipal code to increase criminal fines for short-term rental property and building code violations.

RESOLUTION NO. 22-24

A RESOLUTION OF THE FOUNTAIN VALLEY PLANNING COMMISSION

APPROVING A NOTICE OF EXEMPTION PER THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT (CEQA) AND APPROVING
CONDITIONAL USE PERMIT NO. 1411-M FILED BY G&M OIL CO. TO

ALLOW FOR THE SALES OF BEER AND WINE FOR OFF-SITE
CONSUMPTION (TYPE-20 ABC LICENSE) FOR THE EXTRA MILE MARKET LOCATED AT 17980 MAGNOLIA STREET
WHEREAS, an application for Conditional Use Permit No. 1411-M was submitted by G&M Oil to allow for the sales of beer and wine for off-site consumption(Type 20 ABC License) for the Extra Mile Market located at 17980 Magnolia Street; and WHEREAS, the Fountain Valley Planning Commission considered said application at its noticed public hearing on September 14, 2022; and WHEREAS, the Planning Commission has imposed conditions, pursuant to the Conditional Use Permit process, which mitigate potential negative effects of the proposed project; and
WHEREAS, the Planning Commission has determined that the proposed Conditional Use Permit is consistent with the Fountain Valley General Plan.

NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS:

SECTION 1
The Planning Commission finds that due notice of the public hearings in the Council Chambers, City Hall, 10200 Slater Avenue, was given as required by the Fountain Valley Municipal Code (FVMC), Title 21, and the Statutes of the State of California.

SECTION 2
Findings and Supporting Facts: - The Planning Commission finds that the subject application meets the criteria for a Conditional Use Permit found in Chapter 21.36 of the Fountain Valley Municipal Code as follows:

1. The proposed use is allowed within the C1 zoning district with the approval of a Conditional Use Permit and complies with all other applicable provisions of the Development Code and the Municipal Code.

The proposed Type 20 off-sale beer and wine, liquor license (Type 20 license) is an allowed use in the C1 zoning district subject to the Planning Commission’s approval of a Conditional Use Permit.

2. The proposed use is consistent with the actions, goals, objectives, and policies of the General Plan and any applicable specific plan.

The proposed use of a Type 20 license for Extra Mile Market meets General Plan Goal

2.12, which is to enhance the city’s economic base and business environment by

Resolution No. 22-24

assisting in the improvement and intensification of existing commercial development (Goal/Policy 2.12). Adding the Type 20 license will enhance convenience for Extra Mile Market customers by providing a one stop shopping experience for alcoholic beverages. This use does not fall within any Specific Plans in the City of Fountain Valley.

3. The design, location, shape, size, and operating characteristics of the proposed use are compatible with the existing and future land uses in the vicinity.

The design, location, shape, size, and operating characteristics of the Type-20 liquor license is compatible with the existing and future land uses in the vicinity. The sales of beer and wine will be from a specific designated area within the existing retail store.

The operations of the store comply with the normal anticipated operating characteristics of a retail store with a Type 20 license in a commercial shopping center in the C1-Local Business zone.

4. The subject site is physically suitable for the type and density/intensity of use being proposed including the provision of public access (e.g., width and pavement type), facilities, and utilities (e.g., drainage, fire protection, sewers, water), shape, size, the absence of physical constraints, and compatibility with adjoining land uses.

The proposed use is physically suitable for the type and intensity of use being proposed and will comply with public access, facilities, and utility requirements and is compatible with adjoining land uses. Sufficient vehicular and pedestrian access is provided from both Magnolia Street as well as Talbert Avenue to the retail store.

Sufficient facilities as well as drainage, fire protection, sewers, and water utilities are be provided to the tenant space. The proposed Type 20 license will be displayed in a specific designated space within the envelope of the existing tenant space. The alcohol display area is adequate in shape and size for the retail store.

5. Granting the Conditional Use Permit would not be detrimental to the public convenience, health, interest, safety, or welfare, or injurious to persons, property, or improvements in the vicinity and zoning district in which the property is located.

The proposed Type 20 license will be displayed in a specific designated space within the existing retail store. The alcohol display area is adequate in shape and size for the retail store. The conditions of approval included in this resolution help ensure the proposed use is not detrimental to the public convenience, health, interest, safety, or welfare, or injurious to persons, property, or improvements in the vicinity and zoning district in which the property is located. The approval of this Conditional Use Permit shall be contingent upon the approval of a finding of Public Convenience or Necessity (PCN) by the City Council if an overconcentration of off-sale liquor licenses exists in the Census Tract.

6. The proposed project has been reviewed in compliance with the provisions of the California Environmental Quality Act (CEQA) and the City’s Environmental Review Procedures.

Resolution No. 22-24

The proposed project has been reviewed in compliance with CEQA and is categorically exempt per Section 3 below.

7. By signing this Resolution, the applicant has demonstrated his/her understanding of the conditions imposed in the Conditional Use Permit (attached as Exhibit 1 herein) granted to him/her and has agreed on the record to abide by those conditions.

SECTION 3
The Planning Commission finds that the proposed project can be determined categorically exempt pursuant to Class 1 (Section 15301 – Existing Facilities) of the California Environmental Quality Act (CEQA) Guidelines. The project includes modifying the existing Conditional Use Permit to allow for Type 20 off-sale liquor license for beer and wine.

SECTION 4
The Planning Commission hereby approves Conditional Use Permit No. 1411M to allow for the sales of beer and wine for off-site consumption(Type 20 ABC License) for the Extra Mile Market located at 17948 Magnolia Street;
PASSED, APPROVED AND ADOPTED THIS 14th DAY OF September, 2022 ______________________________ ______________________________ Chairman Secretary

BY SIGNING THIS PERMIT, THE PERMITTEE ACKNOWLEDGES ALL OF THE

CONDITIONS IMPOSED AND ACCEPTS THIS PERMIT SUBJECT TO THOSE

CONDITIONS AND WITH THE FULL AWARENESS OF THE PROVISIONS OF CHAPTER

21.36 OF THE FOUNTAIN VALLEY MUNICIPAL CODE.

BY SIGNING THIS RESOLUTION, THE APPLICANT ACKNOWLEDGES ACCEPTANCE OF

THE BENEFITS OF THE CONDITIONAL USE PERMIT AND AGREES TO WAIVE ANY

RIGHT TO LATER CHALLENGE ANY CONDITION(S) IMPOSED AS UNFAIR, UNNECESSARY, OR UNREASONABLE.
/
Date Applicant Sign/Print

EXHIBIT 1

CONDITIONS OF APPROVAL
Conditional Use Permit No. 1411-M
Extra Mile Market
17980 Magnolia Street
Fountain Valley, CA
The following Conditions of Approval [COA] apply to this project. The COA’s are specific conditions applicable to the proposed project. The property owner is responsible for the fulfillment of all conditions and standard development requirements, unless specifically stated otherwise.

In addition to complying with all applicable City, County, State and Federal Statutes, Codes, Ordinances, Resolutions and Regulations, permittee expressly accepts and agrees to comply with the following Conditions of Approval of this Permit:

Planning Department Conditions Unique to this Project

1. The site plan and floor plan dated June 27, 2022, (attached as Attachment # 2 to the staff report for this project) have been reviewed and approved by the Planning Commission on September 12, 2022.

2. The number of persons shall not exceed the maximum occupancy load as determined by the Fire Department. If required by the Fire Department, signs indicating the occupant load shall be posted in a conspicuous place near the main entrance and must be posted prior to final inspection and prior to issuance of a certificate of occupancy for the retail store.

3. Signs for this facility shall comply with the approved Sign Program for the Fountain Valley Square Shopping Center.

4. The windows of the business shall be free of any obstruction, tinting, or painting, except for window signage as permitted by the Fountain Valley Sign Code.

5. The hours of operation shall be permitted to maintain 24 hour operations seven (7) days a week. Hours of delivery shall be restricted to the hours of 7:00 a.m. to 8:00 p.m. Monday through Friday, 9:00 a.m. to 8:00 p.m. on Saturday, and no time on Sunday or legal holiday.

6. The sales of alcoholic beverages shall be restricted to 6:00 a.m. to 2:00 a.m., seven (7) days a week.

7. There shall be no trash dumping from the facility between the hours of 10:00 p.m. and 7:00 a.m., seven (7) days a week.

8. All non-refrigerant trucks shall not sit idling and shall be turned off when loading and unloading

9. The operator shall not permit vending machines, video games, rides, etc. on the exterior of the building.

10. All Conditions of Approval approved as part of Resolution 98-14 shall continue to be complied with.

11. Required landscaping shall be maintained in a neat, clean and healthy condition. This shall include pruning, mowing of lawns, weeding, removal of litter, fertilizing, replacement of plants when necessary, and the regular water of all plantings.

12. The rear/side doors shall not be used, except for emergencies, between the hours of 10:00 p.m. and 7:00 a.m.

13. Truck delivery material and goods shall not be stored outside of the building and shall be moved to the inside of the store expeditiously upon delivery.

14. The approval of this Conditional Use Permit shall be contingent upon the approval of a finding of Public Convenience or Necessity (PCN) by the City Council

15. Install, and maintain in proper working order, security cameras around the premises.

These cameras should include, but are not limited to, visual coverage of the areas available to the public on the inside of the store, as well as the parking area in front of the store, and the alley behind the store. These cameras will have high resolution and low-light capability. Video from all cameras will be recorded and made available to the Police Department upon request. A video camera plan shall be included in the applicant’s plan check submittal to the Building Department and security cameras shall be installed prior to issuance of certificate of occupancy for the retail store.

Applicant’s Initials

16. Consumption of liquor products on site at 17980 Magnolia Street is prohibited.

17. The operator will ensure that there will be no drinking and/or loitering in the parking lot or within 100 feet of the establishment.

18. No alcoholic beverages shall be consumed on any property adjacent to the licensed premises under the control of the licensee.

19. The Applicant shall post a prominent, permanent sign or signs stating, "No person under 21 will be sold alcoholic beverages" and "Valid ID is required to purchase alcoholic beverages." These signs shall be installed and verified by staff prior to city zoning clearance is given to the Department of Alcoholic Beverage Control.

20. The applicant shall ensure all pertinent employees have obtained Licensee Education on Alcohol and Drugs (LEAD) Certificates and copies of such certificates shall be kept on-site and made available for inspection by a public official upon request.

21. All requirements of a Type 20 ABC License and the City shall be observed at all times and such requirements shall be a condition of approval. The surrender, lapse, termination, suspension, or payment of a fine in lieu of suspension/termination, of the

Alcoholic Beverage License issued for the site by the ABC shall be grounds for revocation of the CUP.

Planning Department Standard Conditions

22. Conditional Use Permit No. 1411-M shall be approved and in effect for a period of 12 months from the original date of approval by the City Council, and/or Planning Commission. If no development has commenced at the end of this 12-month time period, project approval shall expire and be determined void. A one-year extension may be granted at the discretion of the Planning Director. A request for an extension of time should be made in writing by the applicant thirty (30) days prior to the expiration date.

Date of Project Approval: September 14, 2022
Date of Project Expiration: September 14, 2023

23. The resolution is not effective unless it is signed by the applicant indicating and acknowledging his/her understanding of the conditions imposed herein. The failure of the applicant to sign this permit in no way shall be deemed to confer any greater rights than are contained in this permit.

24. By signing and accepting the resolution, the applicant accepts the benefits conferred by the permit subject to the conditions imposed therein. By accepting the right to operate pursuant to the permit, the applicant waives all rights to challenge any condition imposed as unfair or unreasonable.

25. The applicant agrees to indemnify, hold harmless, and defend the City, its officers, agents and employees, from any and all liability or claims that may be brought against the City arising out of its approval of this permit, save and except that caused by City's active negligence. The applicant shall provide a copy of conditions of approval to each manager and to all employees.

26. The applicant shall comply with all federal, state, and local laws. Violations of any of those laws in connection with the use will be cause for revocation of this permit.

27. Violation of any condition of approval shall be a misdemeanor.

28. The Planning Director may interpret the implementation of each condition of approval and, with advanced notice, grant minor amendments to approved plans and/or conditions of approval based on changed circumstances, new information, and/or relevant factors as long as the spirit and intent of the approved condition of approval is satisfied. Permits shall not be issued until the proposed minor amendment has been reviewed and approved for conformance with the intent of the approved condition of approval. If the proposed changes are substantial in nature, an amendment to the original entitlement may be required pursuant to the provisions of the Fountain Valley Municipal Code.

29. This resolution supersedes previously approved resolutions 1748 for 17980 Magnolia Street.

30. Applicant shall comply with FVMC 21.24.110(27) which prohibits vehicle signs for the principal purpose of advertising a business.

31. No satellite dishes greater than 2.2 meters shall be installed on the subject property without approval of the Planning Commission.

32. All new and/or replaced roof-mounted mechanical equipment (air conditioning, heating, ventilation ducts, exhaust, etc.) shall be screened from the view of adjacent properties and rights-of-way as specifically approved by the Planning Director. Roof treatment shall be common to the building and extended to all four (4) building elevations.

33. Street and unit numbers are to be maintained in such a manner as to be plainly visible and shall not be hidden from view by trees, shrubs, bushes, etc., and other obstructions on the property. Street numbers shall be located and be a minimum size so that they are clearly visible from the street and be maintained on the front and rear doors. All numbers shall not be less than 6 in. in height and 2 in. in stroke and be of contrasting color from the background. Street and unit numbers must be installed prior to issuance of a certificate of occupancy.

34. The colors, materials and facades of the building shall be as approved by the Planning Commission. No changes to the colors or materials shall occur without approval by the Planning Director. Changes that the Planning Director deems to vary significantly from the originally approved design shall be forwarded to the Planning Commission for its review and determination.

35. Permittee acknowledges that Education Code Section 48200 et. seq. provides that persons between the ages of 6 and 18 are subject to compulsory education and are required to be in school unless exempted. Permittee agrees not to allow the business to become a "hang out" for truants and agrees not to allow youths to congregate or otherwise loiter in or around the business. Permittee shall take reasonable steps to control the conduct of others on this property so that it does not become a nuisance or otherwise disturb the peace and quiet of the neighborhood or peace, health and safety of the community.

36. An alarm system shall be installed and be of a type that sounds a signal when it is activated.

37. Three or more sustained complaints within any one-year period received by the Fountain Valley Police Department regarding disturbances which have been caused by the business located at 17980 Magnolia Street may be grounds for revocation proceedings.

38. Refuse containment areas shall be provided with a screened and securable gate compliant with the Development Code and Rainbow Disposal specs.

39. There shall be no outdoor storage or display of any kind without the approval of a temporary use permit or in compliance with FVMC 21.10.050(a)(2) Permanent Outdoor Display and Sales.

40. The conditions herein contained shall run with the property and shall be binding on the applicant, and all heirs, executors, administrators, and successors in interest to the real property that is the subject of this approval.

Building Department Conditions

41. Install, maintain and provide for all California Disabled Access compliance per the California Building Code and the Division of State Architect. No encroachment into the disabled path of travel is allowed under any condition with the exception of emergency vehicles and personnel.

42. Projects must comply with the California Code of Regulations, Title 24; Fountain Valley Ordinances, and California law in effect at the time of plan submittal.

Police Department Conditions

43. There shall be no exterior advertising of any kind or type, including advertising directed to the exterior from within, promoting or indicating the availability of alcoholic beverages on the premises.

44. No alcoholic beverages shall be consumed on any property or parking area under the control of the licensee.

45. To maintain the cleanliness of the building, the petitioner shall be responsible for maintaining the area adjacent to their premises over which they have control free of litter and graffiti.

46. Beer shall be sold in multi-pack quantities of a six-pack or more, with the exception of craft/microbrewery beers which can be sold in individual containers of not less than 16 ounces.

47. No wine or distilled spirits shall be sold in bottles or containers smaller than 750 ml or less than a four-pack of wine coolers.

Extra Mile Market
Rite Aide Store- 1
CVS Pharmacy- 2
ALDI- 3
Sunrise Market- 4
Circle K- 5
Sprouts- 6
1 2
3 4
5 6
992.34

UTILITY
SALES
2092 SQ. FEET

FLOOR PLAN
SCALE: 1/4"=1’−0"
MEN
WOMEN

CASHIER
OFFICE

MERCHANDISING
AREA
WALK−IN
COOLER

ALCOHOL SQUARE FOOTAGE

TOTAL SQUARE FOOTAGE
A02
SHT #
(714) 375−4700CALIFORNIA, 92647−4831HUNTINGTON BEACH16868 A STREET

SYMBOL DATE REVISION BY
Revisions
G&M Oil Company, Inc.

Beer and Wine doors
June 27, 2022Exhibit A

1 PUBLIC CONVENIENCE OR NECESSITY STATEMENT OF USE
17980 Magnolia Ave., Fountain Valley, Ca. 92708
Under the Section 23958 of the California ABC Act, two off-sale licenses are allowed within this census tract.

There are currently five active, off-sale licenses in the census tract, thereby making this census tract over concentrated.

Pursuant to applicable law, the applicant hereby demonstrates that public convenience or necessity will be served by the issuance of the applied-for license as follows:

Under local zoning ordinances, the subject premises is designated Local Business (C-1) land use zone and is located on the North East corner of Talbert Avenue and Magnolia Street. The proposed use is an existing Chevron gas station with an “Extra Mile” convenience market and car wash, and it is ideally situated to serve the population of residents, workers and travelers in this part of the City. The addition of beer and wine is a logical extension of their current offering and will prove valuable to a clientele looking for a broader range of beverage choices, thereby providing a benefit to the community.

The surrounding properties are developed with commercial retail, service-related uses and low-density residential. The requested use adds to the diversification of uses within this established business and should remain in proper relation to the adjacent uses.

This location has sufficient parking lot lighting, a state of the art security system and crime deterrence program that helps ensure the peace, comfort and welfare of its customers and the surrounding community. In addition, we have a zero tolerance loitering program in front of our store to protect our customers or any passer-by. The approval of this project will allow the applicant to offer the community a variety of products at one convenient stop.

The sale of beer and wine will be incidental in our convenience store as we provide a variety of products to serve those who live and work nearby. The addition of beer and wine will permit our neighbors to patronize a local establishment rather than drive elsewhere. Our store also offers packaged items, fresh food, hot food, dairy products, fruits, breads, a coffee station, beauty products and other essential products used for daily living.

We are confident that the surrounding businesses and community can only benefit from the addition of beer and wine to this established market. The approval of this project will allow the applicant to expand their beverage inventory. The addition of a beer and wine is a logical extension of their current offering and will prove valuable to a clientele looking for a broader range of beverage choices. This grant will enhance the financial health of the community; improve the economic base of the area through the exchange of goods and services with other commercial uses and generate tax revenue to various municipalities.

The instant request is an organic extension of the current surrounding uses and will therefore remain in appropriate relation to the contiguous uses and ongoing development of the community.

2 The subject premises is bounded on all sides by commercially developed properties and is well-buffered from nearby, residentially zoned and occupied properties and will be secured by alarm and interior and exterior cameras.

The operations of this facility will not contribute to or aggravate police problems in this area as follows:
 The applicant agrees to abide by all applicable City of Fountain Valley rules and regulations concerning operation.
 The premises is well lit and is equipped with a video surveillance system, both inside and outside the premises.
 No amusement machines or video game devices shall be on the premises.  The owner shall be responsible for actively discouraging loitering within the premises.

The applicant has shown that public convenience or necessity would be served by the issuance of the requested license and respectfully requests issuance of a license pursuant to section 23958.4(b)(1) of the ABC Act.

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FOUNTAIN

VALLEY FINDING AND DETERMINING THAT THE PUBLIC

CONVENIENCE OR NECESSITY WOULD BE SERVED BY THE
ISSUANCE OF AN OFF-SALE BEER AND WINE (TYPE 20 ALCOHOLIC

BEVERAGE CONTROL) LICENSE FOR THE PREMISES LOCATED AT
17980 MAGNOLIA STREET
WHEREAS, pursuant to applicable provisions of the Business and Professions Code of the State of California, the Department of Alcoholic Beverage Control (hereinafter the “ABC”) is charged with the responsibility of reviewing applications and issuance of licenses (“license”) for the sale and/or manufacture of alcoholic beverages in the State of California; and
WHEREAS, in 1994, the California legislature enacted AB 2897. Business and Professions Code Section 23958.4 prohibits the issuance of new alcohol retail licenses in any area that has an undue concentration of alcohol outlets unless a determination is made that the license would serve public convenience or necessity. The determination of “Public Convenience or Necessity” is either made by the ABC or by a local governing body, depending on license type; and
WHEREAS, G & M Oil Co (“Applicant”) has petitioned the ABC for an Off-Sale Beer and Wine (Type 20) License and has requested that the City Council determine the Public Convenience or Necessity is warranted; and,
WHEREAS, Section 23958 of the Business and Professions Code provides that the ABC shall deny an application for a license if issuance of that license would tend to create a law enforcement problem, or if issuance would result in or add to an undue concentration of licenses, except as provided in Section 23958.4 of said Business and Professions Code; and
WHEREAS, Section 23958.4 of the Business and Professions Code provides that, notwithstanding the limitations of Section 23958, the ABC may issue a license if the applicant shows that Public Convenience or Necessity would be served by the issuance of such license; and
WHEREAS, pursuant to Section 23958.4 of the Business and Professions Code, the local governing body in this case, the “City Council,” has the discretion to determine when Public Convenience or Necessity would be served by allowing an alcohol license in an area where there is an over concentration of licenses or where there is high crime; and

WHEREAS, under state law Section 23790 of the Business and Professions Code, the ABC may not issue a liquor license if it violates an existing local zoning ordinance; and,
WHEREAS, the subject business is located in Census Tract 992.34 with population such that the ABC may permit up to two (2) off-sale licenses before an undue concentration would exist, and there are currently six (6) off-sale licenses in Census Tract 992.34; and,
WHEREAS, the request for determination of public convenience or necessity, hereinafter (“project”) is exempt from California Environmental Quality Act (CEQA) review under §15061(b)(3) of the CEQA Guidelines because a determination of Public Convenience or Necessity will not with reasonable certainty have any possible effect on the environment; and,
NOW, THEREFORE, the City Council of the City of Fountain Valley resolves as follows:

SECTION 1: The foregoing Recitals are incorporated herein and made a part hereof.

SECTION 2: That the Public Convenience or Necessity would be served by the proposed sale of beer and wine for off-premises consumption in conjunction with the Extra Mile Market.

SECTION 3: The City Council does hereby find and determine that adoption of this Resolution is conditionally predicated upon compliance with each and all of the conditions set forth in Resolution No. 22-24 of Conditional Use Permit No. 1411-M. Should any such conditions, or any part thereof, be declared invalid or unenforceable by the final judgment of any court of competent jurisdiction, then this Resolution, and any approvals herein contained, shall be deemed null and void.

SECTION 4: The applicant has agreed to abide by the conditions of approval for the sale of alcohol as set forth in Resolution No. 22-24.

SECTION 5: Pursuant to §15061(b)(3) of the CEQA Guidelines, an activity is covered by the general rule that CEQA only applies to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA review. Making a determination of Public Convenience or Necessity will not bring about any physical change to the environment. Therefore, in light of the whole record, it can be seen with certainty that the project has no potential to cause a significant effect on the environment. As such, the City finds that the project is exempt from the provisions of CEQA pursuant to CEQA Guidelines Section 15061(b)(3) ("general rule exemption").

SECTION 6: The request for Public Convenience or Necessity determination is hereby approved for Extra Mile Market.

SECTION 7: The City Manager and authorized designees are authorized to transmit Resolution No. to the ABC and take any other necessary actions, sign any other documents or instruments, as may be necessary, to implement, and affect this Resolution on behalf of the City.

PASSED, APPROVED, AND ADOPTED this 4th day of October, 2022 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

City of Fountain Valley
________________________________
Patrick Harper, Mayor
ATTEST:
_______________________________
Rick Miller, City Clerk Administrator
Approve as to form:

Harper & Burns LLP
_______________________________
Attorneys for the City

CITY OF FOUNTAIN VALLEY

CITY COUNCIL

COUNCIL ACTION REQUEST
To: Honorable Mayor and Agenda Date: October 4, 2022
Members of the City Council
SUBJECT: Review Need for Continuing Local Emergency Due to the Omni Metals HazMat Fire – Fourth Review
Three-Year Strategic Goals
☐ Enhance the culture and environment of “A Nice Place to Live” ☐ Attract and retain revenue producing businesses
☐ Achieve fiscal stability in accordance with the 20-Year Financial Plan ☐ Attract and retain quality staff
☒ Not applicable
EXECUTIVE SUMMARY:

The fire at Omni Metals, located at 11665 Coley River Circle, resulted in water runoff that included hazardous materials on Coley River Circle. On May 3, 2022, the City Council, at the recommendation of Staff, declared the existence of a Local Emergency. The Council was updated on the status of the local emergency and determined to continue the local emergency on May 25, 2022, July 19, 2022, and August 23, 2022. This item is the fourth update and review of the need for continuing the local emergency.

LEGAL BACKGROUND:

The California Emergency Services Act provides that a local emergency may be proclaimed by the City Council. (Gov Code 8630.) Whenever a local emergency has been proclaimed, the City Council reviews the need for continuing the local emergency at least once every 60 days until the City Council terminates the local emergency. (Gov Code 8630.) The City Council proclaims the termination of the local emergency at the earliest possible date that conditions warrant. (Gov Code 8630.) OMNI METALS HAZMAT FIRE:

The fire at Omni Metals, located at 11665 Coley River Circle, occurred on April 20, 2022.

The fire resulted in water runoff that included hazardous materials on Coley River Circle.

The Fire Department remains in active communication with the owners of Omni Metals as well as the Environmental Protection Agency (EPA) and Orange County Health (OCH)

City Council Request
Review of Need to Continue Local Emergency
October 4, 2022

to oversee property and building cleanup. The FVFD Fire Marshal remains the liaison to the owners as it relates to the building clean up and will remain in that role until the building is clean and the fire sprinkler system has been restored. Additionally, the Fire Marshal is in regular communication with FV Public Works.

Progress to this point has been acceptable. Per the Fire Marshall:
 Chemicals from tanks have been removed from the building.  Tanks are being tripled rinsed and will be removed from the site.  Raw chemicals are removed from the site.
 The Wastewater Treatment System is being removed.
 All waste, chemicals, and equipment have or will be manifested.  Applying for a Demo Permit from the Building Department  Volunteer Clean-up letter signed and sent to CalEPA and DTSC/Waterboard.

On September 13, 2022, the Orange County Board of Supervisors approved payment ($827,492) to Ocean Blue Environmental, the third party clean up contractor. The County will then send an invoice to the City for reimbursement. City will, in turn, forward the invoice to City’s Insurer and then the City, or City’s Insurer, will forward the invoice to Omni Metals and Omni Metal’s insurer for payment.

Omni Metals has submitted a signed Volunteer Clean-up letter to the CalEPA, Department of Toxic Substances Control (DTSC), and the California Regional Water Quality Control Board (Water Board). Omni Metals will be required to work with these agencies and the City of Fountain Valley for an approved Work Plan to remediate the contaminated soil encapsulating the water line within the public right-of-way.

There is substantial additional work that needs to be done regarding handling and removing hazardous materials. Therefore, continuing the local emergency is prudent due to the nature of the work that will be performed. It is staff’s recommendation that the Council continue the local emergency.

ATTORNEY REVIEW:

The Attorney for the City, Fire Chief, Fire Marshall, and Director of Public Works prepared this Staff Report.

ALTERNATIVES:

Alternative No. 1: Review and approve the continued need for the Proclamation of Local Emergency due to the Omni Metals HazMat Fire.

Alternative No. 2: Find that there is no need to continue the Local Emergency, in which case the emergency will terminate and Staff will prepare a resolution

City Council Request
Review of Need to Continue Local Emergency
October 4, 2022

for Council approval at the next Council Meeting ratifying the termination of the local emergency.

RECOMMENDATION:

Staff recommends that the City Council approve Alternative No. 1: Approve the continued need for the Proclamation of Local Emergency due to the Omni Metals HazMat Fire. This is the recommended action because remediation continues and the declaration of local emergency provides the City with additional liability protection, the ability to take extraordinary action of the need arises, and may provide additional advantages in seeking cost recovery.

Prepared by: Colin Burns, Attorney for the City
Prepared by: HyeJin Lee, Director of Public Works
Prepared by: Ron Cookston, Fire Chief
Prepared by: Michelle Rudaitis, Fire Marshall
Approved by: Maggie Le, City Manager

CITY OF FOUNTAIN VALLEY

CITY COUNCIL

COUNCIL ACTION REQUEST
To: Honorable Mayor and Agenda Date: October 4, 2022
Members of the City Council
SUBJECT: General Plan Amendment 22-02 - Adoption of the 2021-2029 Housing Element Update
Three-Year Strategic Goals
☒ Enhance the culture and environment of “A Nice Place to Live” ☐ Attract and retain revenue producing businesses
☐ Achieve fiscal stability in accordance with the 20-Year Financial Plan ☐ Attract and retain quality staff
☐ Not applicable
EXECUTIVE SUMMARY:

This staff report provides a summary of the City of Fountain Valley’s 6th Cycle Housing Element Update for the 2023-2031 planning period (Housing Element), pursuant to California Government Code Sections 65580-65589.8, which require all local jurisdictions in the State to update the Housing Element of their General Plans every eight years. With a significant amount of new statutory requirements, the 6th Cycle Housing Element is much different than prior cycles. These requirements include the obligation for communities to deliberately address, combat, and relieve disparities in housing that have resulted from past patterns of segregation, as well as new public participation and transparency requirements related to draft element updates and revisions. The Housing Element Update also addresses the Regional Housing Needs Assessment which requires the City to accommodate 4,839 residential units by income category in the City over the planning period.

The Housing Element attached to this Staff Report was submitted to the State Housing and Community Development Department on August 5, 2022. It was also reviewed by the Planning Commission at their regularly scheduled meeting on September 14, 2022. The Planning Commission adopted Resolution 22-26 recommending that the City Council approve the Housing Element Update (General Plan Amendment 22-02).

Housing Element Update
Date of Council Meeting

DISCUSSION:

State law requires every city and county in California to prepare, adopt and implement a General Plan, which establishes overall goals and policies for future growth of the jurisdiction. As set out in California Government Code, a city’s General Plan must include a Housing Element as one of seven mandatory elements. The Housing Element must include policies and programs to meet the City’s existing and future housing needs, as established by the California Department of Housing and Community Development (“HCD”) and the Southern California Association of Governments (“SCAG”).

Content of the Housing Element
The Housing Element is a mandated component of the General Plan and satisfies requirements of state planning law. The Housing Element contains the following sections, all of which are included to comply with State law:
 An introductory overview of the Housing Element and public participation  An analysis of potential housing issues and goals and policies to address these issues  An analysis of housing programs to further the City’s housing goals and policies during this planning period
 Analysis of the City's demographic and housing characteristics and trends  An assessment of Fair Housing practices
 Analysis of potential governmental and non-governmental constraints to meeting the City's housing needs
 Review of the City’s accomplishments during the previous planning period  An inventory of sites that could accommodate the City’s new housing needs RHNA Requirements
To comply with State law, the City's Housing Element must be updated to ensure that the City's policies and programs can accommodate the estimated existing and projected housing needs for Fountain Valley identified by SCAG’s Regional Housing Needs Assessment (RHNA) allocation for the 2021- 2029 planning cycle. Prior to each cycle, the total new housing need for each region of California is determined by HCD based upon economic and demographic trends, existing housing problems such as overcrowding and overpayment, and additional housing needed to ensure reasonable vacancy rates and replace units lost due to demolition or natural disasters.

The total housing need for the SCAG region, which includes Los Angeles, Orange, Riverside, San Bernardino, Imperial and Ventura counties, is distributed to cities and counties by SCAG based upon objectives and criteria established in State law. In 2019, HCD determined that the total new housing need for the entire SCAG region in the 6th Housing Element cycle is 1,341,827 units. In March 2021, SCAG adopted the RHNA plan for the 6th cycle, which fully

Housing Element Update
Date of Council Meeting

allocates the RHNA to jurisdictions in the SCAG region. Table 1 shows the RHNA allocations for Fountain Valley, Orange County, and the entire SCAG region.

Table 1. 6th Cycle RHNA – Fountain Valley, Orange County and SCAG Region
Fountain
Valley
Orange
County
SCAG
Region
Housing need allocation 2021-2029 4,839 183,861 1,341,827 Source: SCAG, 3/4/2021
The RHNA also distributes each jurisdiction’s total housing need into four income categories (the extremely-low and very-low categories are combined for RHNA purposes). Fountain Valley’s 6th cycle RHNA allocation by income category is shown in Table 2.

Table 2. 6th RHNA by Income Category – Fountain Valley
Very-Low Low Moderate
Above
Moderate
Total
1,307 786 834 1,912 4,839
Source: SCAG, 3/4/2021
Available Sites Analysis
The Housing Element must provide an evaluation of the city’s capacity for additional housing based on land use patterns, development regulations, other development constraints (such as infrastructure availability and environmental conditions) and real estate market trends. The analysis must be prepared at a parcel-specific level of detail and identify properties (or “sites”) where additional housing could be built consistent with City regulations. This evaluation is referred to as the “sites analysis” and State law requires the analysis to demonstrate that the city has adequate capacity to fully accommodate its RHNA allocation in each income category. If the sites analysis does not demonstrate that adequate capacity exists to fully accommodate the RHNA, the Housing Element must describe what steps will be taken to increase capacity consistent with the RHNA – typically through amendments to land use and zoning regulations that could facilitate additional housing development. Such amendments typically include increasing the allowable residential density or allowing housing to be built in areas that are currently restricted to only non-residential land uses.

Housing Element Update
Date of Council Meeting

Fountain Valley is near fully developed and with a diminishing amount of vacant land suitable for new housing. Therefore, the City’s RHNA allocation must be satisfied through a mix of vacant land and redevelopment of properties that have potential for housing or mixed use.

TABLE H-22

HOUSING SITES INVENTORY
Density (du/ac) Housing Capacity by Income Category
Map
Ref Site Name GP1 Zone2 Acres Assumed Max VL/L M AM Total5 P1 Prado Family Homes HDR SP 1.95 25.7 30 49 0 1 50
P2 Villa Serena LMDR GH 4.07 7.4 10.8 0 0 12 12
P3 Moiola LMDR R1/GH 12.9 5.7 5/10.8 0 0 74 74
P4 Villa Asteria LMDR GH 1.02 10.8 10.8 0 0 7 7
P5 Guadalupe Manor MDR C1 0.73 25.7 46.5 29 0 0 29
P6 Slater Avenue MU1 MU1 3.34 81 65 33 78 159 270
Planned/Entitled Sites Subtotal 20.7 -- -- 111 78 253 442 U1 16650 Harbor VHDR R53 3.58 50 65 179 0 0 179
U2 Boomers MU2 MU24 6.88 40 55/75 41 83 151 2756a
U3 FV Crossings SP SP3 48.37 22 -- 550 110 440 1,100
U4 Golden Triangle VHDR R53 2.34 50 65 117 0 0 117
U5 Harbor Shpg. Center MU2 MU23 16.69 35 55 53 105 193 3516b U6 Los Cab Sports Vlg. SP SP3 14.74 45 -- 99 200 364 6636c V7 Miller Property HDR R43 18.64 22 30 62 122 227 4116d U8 Smith Farms LMDR GH 4.2 6 10.8 0 9 17 26
U9 Southpark SP SP3 35.35 31 -- 570 110 420 1,100
U10 Warner Square MU1 MU14 1.84 65 75 18 36 66 1206e
Vacant and Underutilized Sites Subtotal 176.63 -- -- 1,689 775 1,878 4,342 ADUs -- -- -- 310 59 15 384
Total Capacity 197.3 -- -- 2,110 834 2,224 5,168
RHNA -- -- -- 2,093 834 1,912 4,839
Surplus Capacity -- -- -- 17 0 312 329

1. GP or General Plan. LMDR = Low Medium Density Residential, HDR = High Density Residential, VHDR = Very High Density Residential, MU1 = Mixed Use 1, MU2 = Mixed Use 2, SP = Specific Plan

2. Zone or Zoning. R1 = Single Family Residential, GH = Garden Homes; C1 = Local Commercial; R4 = High Density Multiple Dwelling, R5 = Very High Density Residential, MU1 = Mixed Use 1, MU2 = Mixed Use 2, SP = Specific Plan

3. Rezoning required. These sites will be rezoned (see Program 1a) in 2023 concurrent with the broader General Plan update.

Housing Element Update
Date of Council Meeting

TABLE H-22

HOUSING SITES INVENTORY
Density (du/ac) Housing Capacity by Income Category
Map
Ref Site Name GP1 Zone2 Acres Assumed Max VL/L M AM Total5

4. Increased maximum density. Mixed-use zoning allows up to 75 units per acre when the nearest property line of the perimeter of the mixed-use zone is separated from the nearest property line of an R1 zone in the City by either the 405 freeway or 400 feet of distance.

5. Assumed Density. Totals are based upon the Assumed density and not the Maximum density.

6. Additional density/capacity. Through Program 1c, the City will adopt an inclusionary housing ordinance in early 2023. As a result, a number of sites will likely seek additional units through state density bonus provisions. While the totals shown in this table and assumed for the purposes of accommodating the RHNA exclude the application of a density bonus, the City is currently evaluating the implications of increasing total capacity as follows: a) 673, b) 404, c) 812, d) 471, e) 211. These capacity figures have also been vetted with the public and property owners.

Community Participation
The City has conducted an extensive outreach program to gain as much participation by the public as possible. Outreach included community workshops, surveys, meetings with the General Plan Advisory Committee, Housing and Community Development Advisory Board, Planning Commission and City Council. Staff also outreached through multiple distribution lists and discussed issues directly with residents, businesses, property owners and housing advocates.

Revisions to Housing Element
Based on informal comments received from State HCD (prior to the official comment letter being provided to the City), Staff has prepared Attachment 4 which is a set of revisions to the Draft Housing Element Update. The suggested revisions were posted on the City’s website and the General Plan distribution group was notified of the proposed changes to allow for a seven-day review period. Any additional changes requested by State HCD will be provide during the City Council meeting.

FISCAL REVIEW:

There is no fiscal impact related to this item.

PUBLIC NOTIFICATION:

On September 22, 2022, a public hearing notice was published in the Fountain Valley View, an electronic message was sent to the City’s General Plan distribution list and public notices were posted at City Hall, Recreation Center, and Fountain Valley Library.

ENVIRONMENTAL IMPACT REVIEW:

This amendment to the City’s General Plan is exempt from California Environmental Quality Act (CEQA) requirements per Section 15061, Review for Exemption of the CEQA Guidelines.

Housing Element Update
Date of Council Meeting

Specifically, Section 15061(b)(3) states, in part, that a project is exempt from CEQA if “the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.” The 2021-2029 Housing Element would not result in any direct or indirect physical changes to the environment. The Housing Element Update is strictly a policy document and does not provide entitlements to any specific land use projects. The Housing Element Update does not make any changes to the Fountain Valley General Plan land use map and would not modify any land use designations, allowed densities, or land use intensities established by the General Plan. Therefore, the proposed project is exempt from CEQA pursuant to State CEQA Guidelines, section 15061.

ATTORNEY REVIEW:

The City Attorney Reviewed the Staff Report and Attachments.

ALTERNATIVES:

1. Adopt Resolution No. 22-26 finding that the Housing Element Update is exempt from the California Environmental Quality Act under the State CEQA Guidelines Section 15061(b)(3) (Common Sense Exemption) and adopting General Plan Amendment 22-02 approving a general plan amendment to adopt the 2021-2029 Housing Element Update. (Attachment #2).

2. Do not adopt Resolution No. 22-26 and provide direction to staff.

3. Continue for further discussion.

RECOMMENDATION:

Staff recommends the City Council approve Alternative #1: Adopt Resolution No. 22-26 (Attachment 2) finding that the Housing Element Update is exempt from the California Environmental Quality Act under the State CEQA Guidelines Section 15061(b)(3) (Common Sense Exemption) and adopt General Plan Amendment 22-02 approving the 2021-2029 Housing Element Update.

Prepared by: Omar Dadabhoy, Deputy City Manager/Community Development Director
Approved by: Maggie Le, City Manager
Attachments:

1. Draft Housing Element Update

Housing Element Update
Date of Council Meeting

2. City Council Resolution Approving General Plan Amendment 22-02

3. Letter from HCD dated December 13, 2021

4. Public Review Draft Housing Element – Revisions

Housing Element

CITY OF FOUNTAIN VALLEY
PUBLIC REVIEW DRAFT | OCTOBER 2021AUGUST 2022
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Fountain Valley Housing Element
Public Review Draft | August 2022 i
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Fountain Valley Housing Element
Public Review Draft | August 2022 ii
Table of Contents
Introduction........................................................................................................1 Purpose ............................................................................................................................. 1 Consistency with State Law............................................................................................... 1 General Plan Consistency .................................................................................................. 2 Citizen Participation .......................................................................................................... 2 Incorporating Community Input......................................................................................... 2 Public Meetings................................................................................................................... 3 Community Surveys............................................................................................................ 4 Stakeholder Outreach......................................................................................................... 4 Public Review of Draft Document....................................................................................... 6 Community Profile..............................................................................................7 Population Characteristics................................................................................................. 7 Population Change.............................................................................................................. 7 Age Characteristics ............................................................................................................. 7 Race and Ethnicity............................................................................................................... 8 Employment Characteristics.............................................................................................. 9 Housing and Households................................................................................................. 11 Housing Growth Trends.................................................................................................... 11 Housing Type .................................................................................................................... 12 Housing Age and Condition .............................................................................................. 12 Household Characteristics............................................................................................... 13 Household Type ................................................................................................................ 13 Household Tenure............................................................................................................. 14 Vacancy Rates................................................................................................................... 14 Household Income............................................................................................................ 15 Housing Inventory and Market Conditions...................................................................... 15 Housing Costs and Affordability........................................................................................ 15 Assisted Housing Developments....................................................................................... 17 Housing Needs ................................................................................................................ 21 Overpayment.................................................................................................................... 21 Overcrowding.................................................................................................................... 22 Special Needs Groups....................................................................................................... 22 Housing Constraints..........................................................................................33 Governmental Constraints.............................................................................................. 33 Land Use Controls............................................................................................................. 33 Building Codes and Code Enforcement ............................................................................ 43 Site Improvements............................................................................................................ 45 Local Processing and Permit Procedures.......................................................................... 45 Development Fees............................................................................................................ 49 Increased Transparency of Zoning and Fees..................................................................... 50

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Non‐Governmental Constraints ...................................................................................... 51 Infrastructure Constraints................................................................................................. 51 Environmental Constraints............................................................................................... 52 Price of Land ..................................................................................................................... 52 Cost of Construction ......................................................................................................... 52 Financing........................................................................................................................... 53 Typical Timing for Building Activity................................................................................... 54 Residential Land Resources...............................................................................55 Regional Housing Needs Assessment.............................................................................. 55 2021–2029 RHNA Allocation............................................................................................. 56 Summary of Development Capacity ................................................................................ 56 Planned/Entitled Residential Development .................................................................... 61 Vacant and Underutilized Land ....................................................................................... 61 Density Assumptions and Zoning Adequacy..................................................................... 62 Development Trends, Constraints, and Incentives........................................................... 64 Descriptions of Individual Sites......................................................................................... 68 Accessory Dwelling Units................................................................................................. 78 Current Rents.................................................................................................................... 79 Development Costs........................................................................................................... 81 Trends and Projections..................................................................................................... 81 Evaluation of Previous Housing Strategies ........................................................86 Efforts to Address Special Housing Needs....................................................................... 89 2014–2021 RHNA Allocation ........................................................................................... 89 Assessment of Fair Housing ..............................................................................91 Context............................................................................................................................ 91 Historical Development of Fountain Valley ...................................................................... 91 Public Outreach Specific to Fair Housing .......................................................................... 92 Technical Assessment of Fair Housing............................................................................. 92 TCAC Opportunity Area Maps........................................................................................... 93 Fair Housing Enforcement and Outreach Capacity........................................................... 97 Patterns of Segregation and Integration ........................................................................ 102 Racially/Ethnically Concentrated Areas of Poverty (R/ECAP)......................................... 114 Access to Opportunity .................................................................................................... 117 Disparate Housing Need and Displacement Risk ........................................................... 121 Overcrowding.................................................................................................................. 121 Overpayment.................................................................................................................. 122 Substandard Housing...................................................................................................... 126 Homelessness ................................................................................................................. 126 Displacement Risk........................................................................................................... 126 Conclusions and Summary of Issues............................................................................... 127 Site Inventory and Fair Housing Factors Analysis.......................................................... 129 Factors with no Concentration with or without Sites Inventory .................................... 129

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Factors with Evidence of Concentration and Comparison to Sites Inventory ................ 130 Contributing Factors...................................................................................................... 134 Housing Strategy.............................................................................................141 Program Category #1: Adequate Housing Sites............................................................. 141 Goal 1: Promote and encourage the development of a variety of housing opportunities to accommodate current and projected households........................ 141 Program Category #2: Housing Production ................................................................... 147 Goal 2: Assist in the provision of housing affordable to lower income households. .............................................................................................................. 148 Program Category #3: Remove Governmental Constraints........................................... 150 Goal 3: Address and, where possible, remove governmental constraints to the maintenance, improvement, and development of housing, including housing for people at all income levels, as well as housing for people with disabilities................................................................................................................. 150 Program Category #4: Housing Maintenance and Improvement.................................. 155 Goal 4: Encourage the maintenance and rehabilitation of the City’s existing housing stock............................................................................................................ 155 Program Category #5: Affordable Housing Opportunities............................................. 157 Goal 5: Conserve and support affordable housing opportunities in the City................. 157 Program Category #6: Equal Housing Opportunities..................................................... 159 Goal 6: Promote housing opportunities for all persons regardless of race, age, religion, sex, marital status, disability status, ancestry, national origin, or color.......................................................................................................................... 159 Quantified Objectives.................................................................................................... 163 Appendix A Sites Inventory by Parcel..............................................................165 List of Tables
Table H‐1  Population in and around Fountain Valley, 2010 & 2020.............................................7 Table H‐2  Population in Fountain Valley by Age Group by Sex, 2019...........................................8 Table H‐3  Population by Race and Ethnicity in Fountain Valley, 2019..........................................8 Table H‐4  Jobs in Fountain Valley by Industry, 2018 ....................................................................9 Table H‐5  Wages in Orange County for Major Occupational Categories, 2020 ..........................10 Table H‐6  Housing Growth Trends in Fountain Valley 2000–2021 .............................................11 Table H‐7  Housing Stock in Fountain Valley By Type and Tenure, 2019.....................................12 Table H‐8  Housing Stock in Fountain Valley by Tenture by Year Built, 2019 ..............................13 Table H‐9  Composition of Households in Fountain Valley, 2010 and 2019 ................................14 Table H‐10  Household Income Distribution in Fountain Valley..................................................15 Table H‐11  Affordable Rent and Home Purchase Price in Fountain Valley.................................17 Table H‐12  Prevalence of Disabilities in Fountain Valley by Age, 2019 ......................................24 Table H‐13  Households in Fountain Valley by Household Size and Tenure, 2019 ......................25

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Table H‐14  Orange County Homeless Shelters and Transitional Housing...................................31 Table H‐15  Zoning for a Variety of Housing Types in Fountain Valley ........................................34 Table H‐16  Zoning for a Variety of Housing Types in Fountain Valley ........................................35 Table H‐17  Residential Zone Development Standards in Fountain Valley..................................36 Table H‐18  Required Parking Stalls by Use in Fountain Valley....................................................37 Table H‐19  Density Bonuses for Projects with Income‐restricted Housing ................................38 Table H‐20  Planning Application Fees in Fountain Valley...........................................................49 Table H‐21  Residential Development Fees for Sample Projects in Fountain Valley....................50 Table H‐22  Housing Sites Inventory ...........................................................................................60 Table H‐23  City ADU Survey Results...........................................................................................80 Table H‐24  Affordable vs ADU Market Rents (Affordable Minus Market Rent) .........................80 Table H‐25  Development Costs for New Construction of Multifamily and Detached ADU ........81 Table H‐26  ADU Capacity Calculations.......................................................................................85 Table H‐27  Evaluation Matrix of 2014–2021 Housing Element Programs..................................86 Table H‐28  School Performance Metrics, 2019 ........................................................................119 Table H‐29  Factors that Contribute to Fair Housing Issues ......................................................135 Table H‐30  Quantified Objectives by Income Category............................................................164 Table HA‐1  Sites Inventory by Parcel........................................................................................ 167 List of Figures
Figure H‐1  Housing Sites Inventory ............................................................................................57 Figure H‐2  Past & Projected ADU Permit Activity  ......................................................................82 Figure H‐3  TCAC Opportunity Areas (2021) ‐ Tract Level............................................................96 Figure H‐4  FHEO Inquiries ‐ by City........................................................................................... 100 Figure H‐5  Use of Housing Choice Vouchers by Renters (2020) ‐ Tract Level ...........................101 Figure H‐6  Diversity Index (2010) ‐ Block Group Level .............................................................105 Figure H‐7  Diversity Index (2018) ‐ Block Group Level .............................................................106 Figure H‐8  Median Income (2015‐2019) ‐ Block Group Level...................................................107 Figure H‐9  Poverty Status (2010‐2014) ‐ Tract Level ................................................................108 Figure H‐10  Poverty Status (2015‐2019) ‐ Tract Level ..............................................................109 Figure H‐11  Linguistic Isolation (2015‐2019) ‐ Tract Level........................................................110 Figure H‐12  Percent of Children in Married Couple Households (2015‐2019) ‐ Tract Level .....111 Figure H‐13  Persons with a Disability (2010‐2014) ‐ Tract Level ..............................................112 Figure H‐14  Persons with a Disability (2015‐2019) ‐ Tract Level ..............................................113 Figure H‐15  Racially Concentrated Areas of Affluence ‐ Tract Level.........................................116 Figure H‐16  Job Proximity Index‐ Block Group Level ................................................................118 Figure H‐17  Overcrowded Households ‐ Tract Level ................................................................123 Figure H‐18  Overpayment by Homeowners ‐ Tract Level.........................................................124 Figure H‐19  Overpayment by Renters ‐ Tract Level..................................................................125 Figure H‐20  Vulnerable Communities ‐ Tract Level ..................................................................128 Figure H‐21  Sites Inventory Comparison..................................................................................140

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List of Charts
Chart H‐1  Income: Comparison of RHNA Capacity Distribution and Citywide Distribution ......131 Chart H‐2  Displacement Risk: Comparison of RHNA Capacity Distribution and Citywide Distribution........................................................................................................ 132

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Introduction
Purpose
The Housing Element of the Fountain Valley General Plan identifies and establishes the City's strategy for the maintenance and development of housing to meet the needs of existing and future residents. It establishes policiesthat will guide City decision making and an action program to implement housing goals for the state‐designated eight‐year planning period: October 15, 2021, through October 15, 2029. These commitments are an expression of the statewide housing goal of "early attainment of decent housing and a suitable living environment for every California family," as well as an expression of the concern that every Fountain Valley household has a suitable living environment.

The City’s housing strategy is based on a comprehensive evaluation of existing housing programs and policies; an analysis of the City’s population, economy, and housing characteristics; an assessment of fair housing issues; and a discussion of the physical and regulatory resources and constraints for housing production.

The Housing Element has been designed to address key housing issues in the City. These issues include the provision of a mix and balance of housing types and costs to meet the needs of all segments of the community while enhancing and preserving the community’s character, the provision of affordable housing for special needs groups, the promotion of fair housing for all residents, and the maintenance of the existing affordable housing stock.

Consistency with State Law
The Housing Element has also been designed to meet the legislative requirements of state housing laws (California Government Code Section 65580, et al.), which requires every city and county to prepare and adopt a housing element of the community's general plan that includes five major components:
 An assessment of the community’s housing needs.
 As assessment of and strategies to affirmatively further fair housing.  An inventory of resources to meet those needs and the constraints that impede public and private sector efforts to meet them.
 A statement of the community’s goals, quantified objectives, and policies relative to the maintenance, preservation, improvement, and development of housing.  An implementation program that describes a schedule of actions that the local government is undertaking or intends to undertake to implement the policies and achieve the goals and objectives of the housing element.

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General Plan Consistency
The Housing Element of the General Plan is only one segment of a city’s comprehensive planning program. The California Government Code requires that general plans contain an integrated, consistent set of goals and policies. The Housing Element is thus affected by the other elements of the general plan: for example, the land use element, which establishes the location, type, and density of residential development throughout the City.

The Housing Element has been reviewed for consistency with the City’s other General Plan elements. As portions of the General Plan are amended in the future, the Housing Element will be reviewed for the purpose of maintaining internal consistency.

Citizen Participation
Public outreach for the current planning period occurred between 2019 and 2021 through contact with residents, business owners, developers, other governmental agencies, and nonprofit organizations. Outreach efforts presented information and provided open forums for sharing input regarding the City’s housing needs and programs.

Incorporating Community Input
The outreach efforts described below resulted in a collection of input from residents, affordable housing advocates, and housing developers. Their contributions shaped the ultimate outcome of the housing goals and strategies for the City of Fountain Valley. As such, the Housing Element describes a variety of programs and available resources that demonstrate the City’s commitment to furthering housing opportunities within its jurisdiction.

First and foremost, the City seeks to expand housing access for low‐  and moderate‐income households in the area. Program 1c, Inclusionary Housing Ordinance, will guarantee that 15 percent of all future housing development will be affordable to lower income households.

Furthermore, the combined implementation of Programs 2b, and 2c aim to increase the availability of funding for the development of new affordable units. The City also regularly evaluates its residential development standards and parking standards to remove constraints on housing production through programs 3a and 3b. Program 1d will introduce significant incentives that encourage the development of Accessory Dwelling Units.

The City takes pride in its community character and is dedicating resources to continue the maintenance and improvement of its various neighborhoods. Most single family homes and multifamily developments were built during the 1960s and 1970s and some structures are starting to show their age. For lower income homeowners and owners of affordable rental units, the cost of routine maintenance or critical repairs may be too burdensome. Instead of allowing these unitsto fall into disrepair, potentially creating unhealthy environments for persons already vulnerable to disparate impacts, programs 4a, Home Improvement Program, and 4c, Lead Based Paint Hazard Grant Program, offer funding and financing alternatives to help reduce the cost

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burden. In addition, Program 4b, Infrastructure Improvement Program, will direct capital investment to neighborhoods most in need of critical infrastructure and quality of life enhancements.

Finally, public input supporting additional City efforts to promote homeownership led to the inclusion of Program 2e, Homebuyer Assistance. The City will help connect qualifying first‐time homebuyers with financial resources administered by the County of Orange. Not only will this program help preserve the City’s neighborhood character, but it will also help lower income households build long‐term equity.

Public Meetings
Consolidated Plan. The City prepared its 2020‐2024 Consolidated Plan that identifiesthe housing and community development needs and sets forth a strategic plan for addressing the identified needs through various federal housing programs. The purpose and process were presented at a February 5, 2020, meeting of the City’s Housing and Community Development Advisory Board Meeting (HCDAB), followed by a Community Needs Public Workshop on March 4, 2020, to review the results of the survey and obtain additional public input into the best use of funds to benefit the community. Highlights of community input received include the need for home buying education and assistance, more affordable ownership and rental housing, maintenance and rehabilitation of existing housing, and affordable housing services. Public hearings to take in additional input were conducted at the HCDAB on June 3 and June 16, 2020.

General Plan Update. The following meetings were held throughout 2021, advertised through the City’s website, social media platforms, and key stakeholders.  General Plan Advisory Committee (02/11/2021): Overview, summary of existing housing needs and affordable housing strategies, future housing needs and opportunity sites/ADUs, density bonus ordinance, inclusionary housing ordinance  General Plan Advisory Committee (02/25/2021): Overview, summary of existing housing needs and affordable housing strategies, future housing needs and opportunity sites/ADUs, highlights of new state laws
 Planning Commission and City Council Briefing (03/31/2021): Overview, summary of existing housing needs and affordable housing strategies, future housing needs and opportunity sites/ADUs, density bonus law, inclusionary housing ordinance, highlights of new state laws  Planning Commission and City Council Briefing (04/22/2021): Overview, summary of existing housing needs and affordable housing strategies, future housing needs and opportunity sites/ADUs, inclusionary housing ordinance
 Virtual Public Workshop (08/01/2021): Overview, walk through of existing housing needs and affordable housing strategies, future housing needs and opportunity sites/ADUs, review of current housing programs and potential changes, highlights of new laws (including affirmatively furthering fair housing)

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 General Plan Advisory Committee (08/07/2021): Review of draft element, current housing programs, review of public input received to date, findings of fair housing assessment, and walk through of proposed changes to programs
 General Plan Advisory Committee (5/19/22): Review status of housing strategy and nextsteps for public review and HCD review
 Planning Commission Study Session (TBD): Review of draft element, current housing programs, review of public input received to date, findings of fair housing assessment, and walk through of proposed changes to programs
 Planning Commission Public Hearing (TBD) and City Council Adoption Hearing (TBD): review and consideration of Draft Housing Element for recommendation/adoption.

Community Surveys
Consolidated Plan. As part of the 2020‐2024 Consolidated Plan, a public survey was distributed in February and March 2020 in digital and hard copy formats and advertised through multiple media channels, ultimately reaching 25 public agencies and 6,000 subscribers to the City newsletter. The survey asked respondents to rank the importance of the needs for community facilities, community services, special needs populations, business development and jobs, residential infrastructure, neighborhood services, and affordable housing.

Housing Element. In August 2021, a companion survey was disseminated alongside the housing element presentation that asked the community for input on housing issues currently facing the City and to rank priorities for housing policies and programs moving forward. The survey collected responses from residents, people employed in the City, local businessowners, and local property owners. Overall, many participants are content with the success of the City’s current programs and wish to maintain the status quo. The topics of affordable housing preservation and homeless services garnered increased interest, with more respondents indicating that additional effort was needed to help those affected by displacement and/or homelessness.

Stakeholder Outreach
In the second half of 2020 through early 2021, the City engaged with various local and regional organizations that advocate for or provide services related to affordable housing and/or special needs groups. Input from these organizations furthered the City’s understanding of the housing needs and constraints facing Fountain Valley and other nearby communities. A brief list of stakeholders interviewed and issues raised is provided below. The primary concerns brought forward by stakeholders pertain to the availability of affordable housing options and are directly addressed in the policies and programs associated with Housing Strategy Goals 1, 2 and 3.  Fair housing and special needs: Orange County Housing Authority, Regional Center of Orange County, Innovative Housing Opportunities, and Regional Office of Fair Housing and Equal Opportunity

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o Limited availability of adequate housing opportunities for people with developmental disabilities.
o Prolonged development timeline for supportive housing increases cost burden. o CEQA, financial, political, and community engagement present challenges. o Funding sources can require conflicting regulations, meaning some individuals may be excluded from services.
o Flexibility in development code would allow for more creative ways to integrate supportive housing into existing community.
o Funding is tied to tax revenue, so recessions can severely hamper production.  Affordable housing: The Kennedy Commission, Innovative Housing Opportunities o Cities need policies that proactively incentivize affordable housing. o Limited workforce housing in Orange County despite large service sector. o Periods of economic recessions (like COVID) place even more housing pressure on service sector workers.
o Collaboration between community organizations and public agencies can facilitate responsible affordable housing development.
o Limited affordable housing options (single family vs. multi‐family) and opportunities for ownership.
o Clear up misconceptions about affordable housing prevent its production. o Target densities far above 30 units per acre, especially to be competitive for tax credit applications.
o Incorporate equity sharing as a path toward homeownership and so that residents that pay rent and/or a reduced mortgage over decades are not locked out of equity gains. o Cities need to adopt inclusionary housing ordinances, ideally with targets that are higher than 15 percent.
o Cities should also consider commercial linkage fees, anti‐displacement policies, rezoning only upon the provision of affordable housing, more aggressive outreach to and promotion of affordable developers, and adaptive reuse ordinance to facilitate more affordable housing, especially given the decline in office and retail sectors  Economic development and market rate housing: Building Industry Association of Southern California, Orange County Business Council, and OC Realtors o Hard and soft costs have increased, making housing production more expensive all around.
o Project streamlining has not proven to be as effective as promised throughout the county.

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o Orange County needs housing products for all buyers: entry level, workforce housing, ADUs, and affordable.
o Younger generation priced out of the market; influences businesses that remain. o Underutilized commercial centers are viable opportunities for housing development. o Single family housing is in highest demand, but preference for ownership opens the door for condominiums.
o Primary issue is severely constrained supply that only increased building can remedy.

Public Review of Draft Document
A profile of the City’s existing conditions and housing needs was distributed throughout 2021 as part of various public meetings. In response to community concerns expressed through the surveys and public meetings about the potential effects of lower income housing on property values and crime rates, the City summarized and posted recent research (2016/2019) online that found (consistent with the purpose of AB 686), that concentrating large amounts of lower income housing in areas of existing poverty can lead to lower property values and higher crime rates in those areas of poverty. On the other hand, placing lower income housing in affluent or high opportunity areas, like Fountain Valley, does not lower property values or increase crime rates.

The City prepared and released a draft version of the entire Housing Element for public review and comment in October 2021 prior to distribution to the state for official review. The draft documents were posted on the City’s website with direct outreach to key stakeholders to ensure awareness and opportunity for comment.

A revised draft was released for public review and comment on July 5, 2022, for an additional week (seven days) prior to distribution to the state for a second round of review. The distribution was made to all individuals and organizations that have previously requested notices and was also made available to the broader public on the City’s Housing Element webpage. The City received 20 comments, primarily consisting of residents expressing their concerns about higher density housing. The City considered public comments for a little over two weeks and modified Program 1A to identify additional housing opportunity sites elsewhere in the City by 2024 to expand capacity and create more flexibility for future development sites.

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Community Profile
Population Characteristics
Population Change
Fountain Valley is a built‐out community that has remained relatively stable for decades. From 2010 to 2020, Fountain Valley's population increased by only 3.1%. Growth in neighboring cities varied; Huntington Beach grew by 5.2%, Costa Mesa grew by 9.7%, Westminster grew by 2.2%, and Santa Ana shrank by 4.6%. Orange County experienced substantially more growth by comparison, increasing 7.5%. Table H‐1 depicts the 2010 and 2020 population counts and percentage changes for Fountain Valley, neighboring cities, and Orange County.

TABLE H‐1
POPULATION IN AND AROUND FOUNTAIN VALLEY, 2010 & 2020
Jurisdiction
2010 2020 % Change 2010‐
Number % of County Number % of County 2020
Fountain Valley 55,313 1.9% 57,047 1.8% 3.1%
Costa Mesa 109,316 3.7% 119,918 3.6% 9.7%
Huntington Beach 188,914 6.4% 198,711 6.3% 5.2%
Santa Ana 325,216 11.0% 310,227 10.5% ‐4.6%
Westminster 88,921 3.0% 90,911 2.9% 2.2%
Orange County 2,965,525 ‐ 3,186,989 ‐ 7.5%
Source: 2010 Decennial Census; 2020 Decennial Census
Age Characteristics
The age structure of a population is an important factor in evaluating housing needs and planning future housing development. For example, if a city is experiencing an outmigration of young adults (ages 25‐34), this may indicate a shortage of first‐time homebuyer opportunities and/or well‐paying employment opportunities. If a city has a substantial elderly population, special housing types or services may be needed, such as assisted living facilities, housing rehabilitation programs, paratransit, meals on wheels, and home health care services, in order to enable seniors to remain in the community. Table H‐2 shows the number and percentages of Fountain Valley residents in each age group.

Fountain Valley is a maturing community. Between 2010 and 2019, the median age of Fountain Valley residents increased from 42.6 to 44.6, while the countywide median increased from 35.2 to 38.1 and the statewide median increased from 36.2 to 36.5. The median age for the City and the state is expected to increase asthe Baby Boom generation ages. Fountain Valley has a smaller proportion of children than the County – 16% of Fountain Valley residents were aged 14 or younger, while 18% of County residents were children in this age group. Roughly half of Fountain Valley residents are aged 45 or older compared to only 41% countywide.

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TABLE H‐2
POPULATION IN FOUNTAIN VALLEY BY AGE GROUP BY SEX, 2019 Age Group
Total Female Male
Number Percentage Number Percentage Number Percentage
Under 5 2,526 5% 1,253 4% 1,273 5%
5 to 19 9,988 18% 4,833 17% 5,155 19%
20 to 24 3,140 6% 1,700 6% 1,440 5%
25 to 34 5,887 11% 2,965 10% 2,922 11%
35 to 44 6,765 12% 3,479 12% 3,286 12%
45 to 54 8,487 15% 4,356 15% 4,131 15%
55 to 64 8,243 15% 4,170 15% 4,073 15%
65 to 74 6,396 11% 3,522 12% 2,874 11%
75 to 84 3,310 6% 1,749 6% 1,561 6%
85 and older 1,284 2% 796 3% 488 2%
Total 56,026 100% 28,823 51% 27,203 49%
Median Age 44.6 years 45.4 years 43.7
Source: 2019 ACS 5‐Year Estimates, Table S0101
Race and Ethnicity
As shown in Table H‐3, 42% of Fountain Valley’s population was White, slightly lower than the County at 43%. While the City hasfewer Hispanic residents(15%) compared to countywide (34%), the City has more Asian residents (40%) compared to countywide (22%). Approximately 6% of Fountain Valley’s residents indicated that they are of “some other race”.

TABLE H‐3
POPULATION BY RACE AND ETHNICITY IN FOUNTAIN VALLEY, 2019 Race Alone People Percentage
One Race 51,258 90%
White 23,895 42%
Black or African American 573 1%
American Indian or Alaskan Native 288 1%
Asian 22,703 40%
Native Hawaiian/ Pacific Islander 135 <1%
Some Other Race 3,664 6%
Two or More Races 5,789 10%
Total 57,047 100%
Hispanic or Latino (of any race) 8,837 15%
Not Hispanic or Latino 48,210 85%
Total 57,047 100%
Source: 2019 ACS 5‐Year Estimates, Table DP05

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Employment Characteristics
As of 2018, there were approximately 31,421 jobsin Fountain Valley, with about 8% of employed Fountain Valley residents also work within the city. An estimated 68% of Fountain Valley residents work within Orange County, with employed Fountain Valley residents traveling an average of 28 minutes each way to get to their place of employment. Due in large part to the two hospitalslocated in Fountain Valley, 25% of the city’slabor force was employed in healthcare and social services, and another 21% were in retail sales, accommodations, and food services (see Table H‐4). Another 10% of the city’s labor force was in professional, scientific, and technical services and management. Major employersin the City include Fountain Valley Regional Hospital, Hyundai Motor America, Orange Coast Memorial Hospital, Kingston Technology Company, and Memorial Health Services. Table H‐5 displays the average wage of occupations found across the subregion, indicating that many jobs may not earn enough to afford the cost of rent or mortgage.

TABLE H‐4
JOBS IN FOUNTAIN VALLEY BY INDUSTRY, 2018
Industry Number Percentage
Agriculture, Forestry, Fishing and Hunting 16 0.1%
Mining, Quarrying, and Oil and Gas Extraction 2 <0.1%
Utilities 926 2.9%
Construction 1,252 4.0%
Manufacturing 2,222 7.1%
Wholesale Trade 1,529 4.9%
Retail Trade 3,049 9.7%
Transportation and Warehousing 285 0.9%
Information 155 0.5%
Finance and Insurance 668 2.1%
Real Estate and Rental and Leasing 408 1.3%
Professional, Scientific, and Technical Services 2,246 7.1% Management of Companies and Enterprises 1,080 3.4%
Admin & Support, Waste Mgmt. / Remediation 2,110 6.7%
Educational Services 2,405 7.7%
Health Care and Social Assistance 7,786 24.8%
Arts, Entertainment, and Recreation 500 1.6%
Accommodation and Food Services 3,484 11.1%
Other Services (excluding Public Administration) 1,016 3.2% Public Administration 282 0.9%
Total 31,421 100%
Source: U.S. Census Bureau, Longitudinal Employer‐Household Dynamics 2018

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TABLE H‐5
WAGES IN ORANGE COUNTY FOR MAJOR OCCUPATIONAL CATEGORIES, 2020 Occupational Category
Average Wage
Income Category by Household Size
(assumes 1 wage earner/household)
Hourly Annual 1 2 3
Architecture and Engineering $47.79 $99,403 Above Mod Mod Mod Arts, Design, Sports, Media $31.55 $65,612 Low Low Low
Building/Grounds Maint. $17.25 $35,880 Very Low Very Low Very Low Business/Financial Operations $38.52 $80,107 Mod Low Low Community and Social Services $28.18 $58,617 Low Low Low Computer and Mathematical $46.18 $96,051 Above Mod Mod Mod Construction and Extraction $30.10 $62,616 Low Low Low
Education, Training, Library $34.73 $72,247 Mod Low Low Farming, Fishing, and Forestry $16.77 $34,876 Very Low Very Low Very Low Food Preparation/Service $15.68 $32,613 Very Low Very Low Ex Low Healthcare Practitioners/Tech $48.62 $101,125 Above Mod Above Mod Mod Healthcare Support $16.73 $34,790 Low Low Very Low
Installation, Maint./Repair $27.21 $56,597 Low Low Very Low Legal Occupations $70.68 $147,030 Above Mod Above Mod Above Mod Life, Physical, Social Science $40.67 $84,611 Mod Mod Low Management Occupations $66.93 $139,225 Above Mod Above Mod Above Mod Office and Admin Support $22.69 $47,191 Low Very Low Low Personal Care and Service $16.70 $34,725 Very Low Very Low Very Low Production Service $20.28 $42,181 Very Low Very Low Very Low Protective Service $27.78 $57,788 Low Low Low
Sales and Related $24.71 $51,402 Low Low Very Low
Trans. and Material Moving $18.27 $38,010 Very Low Very Low Very Low Source: California EDD, Occupational Employment and Wage (2020, 1st Quarter) Data, Anaheim–Santa Ana–Irvine Metropolitan Area.

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Housing and Households
Information on the existing housing stock and household characteristicsis an important indicator of existing housing needs in a community. For example, during public outreach meetings, the community expressed concern on the ability of young, family households to live in Fountain Valley. The majority of housing available in the city is highly valuable single family detached homes. As a result, young families without adequate income, may find themselves priced out of the single family housing market and may also be unable to find alternative housing options within the city boundaries. The following section describes the current makeup of households and the housing stock in Fountain Valley.

A housing unit is defined as a house, apartment, mobile home, or a single room occupied as a separate living quarter or, if vacant, intended for occupancy as a separate living quarter. Separate living quarters are those in which the occupants live and eat separately from any other persons in the building, and which have direct access from the outside of the building or through a common hall.

Put simply, a household is an occupied housing unit. The Census Bureau defines a "household" as “all persons who occupy a housing unit, which may include families or individuals, whether or not they are related. Families are households related through marriage or blood, and a single household refers to individuals living alone. "Other" households reflect unrelated individuals living together (e.g., roommates). Persons living in retirement or convalescent homes, dormitories, or other group living situations are not considered households. Such living situations and their residences are considered to be “group quarters”.

Housing Growth Trends
As expected for a largely built‐out city, housing growth was incremental and 244 more housing units were constructed since 2010, growing to an estimated 19,408 units in 2021. Table H‐6 displays the overall housing growth since 2000. A total of 118 individual single family detached, 73 single family attached, and 53 multifamily units were developed in the past 11 years. With nearly all of the individualsingle family lots developed, future housing growth will likely be almost exclusively multifamily.

TABLE H‐6
HOUSING GROWTH TRENDS IN FOUNTAIN VALLEY 2000–2021
Year Dwelling Units Cumulative Increase Percentage Increase 2000 18,473  ‐‐  ‐‐
2010 19,164 691 3.7%
2021 19,408 244 1.3%
Source: 2000 and 2010 Decennial Census, 2021 Department of Finance Population and Housing Estimates

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Housing Type
Fountain Valley is primarily a community of single family houses. As shown in Table H‐7, three‐ quarters of the City’s total housing stock are single family units, most of which are detached.

While nearly all ownership households in the city reside in single family homes, nearly 2,000 rental households also live in single family detached or attached units. Of the 321 mobile homes in the city, all are owner‐occupied. Conversely, nearly three quarters of rental households live in multifamily housing, particularly buildings that contain 10 or more units, such as apartments.

TABLE H‐7
HOUSING STOCK IN FOUNTAIN VALLEY BY TYPE AND TENURE, 2019 Type of Unit
2019 Owner 2019 Renter 2019 Total
Units Percent Units Percent Units Percent
1, detached 10,669 82% 1,532 28% 12,201 66%
1, attached 1,315 10% 435 8% 1,750 9%
2 to 4 units 281 2% 682 12% 963 5%
5 to 9 units 152 1% 508 9% 660 4%
10 units+ 216 2% 2,358 43% 2,574 14%
Mobile homes/other   321 2% 0 0% 321 2%
Total 12,954 100% 5,515 100% 18,469 100%
Source: 2019 ACS 5‐Year Estimates, Table B25032
Housing Age and Condition
Most housing begin to exhibit signs of decay when they approach 30 years of age. Common repairs needed include new roofs, wall plaster and stucco. Housing built prior to 1990 that deferred maintenance will generally require more substantial repairs, such as new siding, plumbing or multiple repairs to the roof, walls, etc. Rental units are more often maintained in a regular fashion based on state regulations and the need to compete with other rental options and retain occupants. The timing and extent of maintenance of ownership units (primarily single family detached homes) are up to the individual owner and may be deferred for a multitude of reasons, including an inability to fund regular maintenance.

Gaining an accurate understanding of the specific nature and extent of housing conditions can be hard to obtain—often only possible through extensive windshield surveys and internal inspections. In December 2019, City staff conducted a windshield survey of the city to assess the maintenance and rehabilitation needs of the City’s housing stock. Only 475 housing units were identified by staff that showed obvious deferred maintenance issues, all of which could be repaired if the owner had the resources and desire to do so. There were not any properties with deferred maintenance so great they would not be able to be repaired. The great majority of the City’s housing stock was in good or excellent condition and showed the pride of ownership that residents of Fountain Valley strive for and expect. This point is underscored by the vast number of building permits issued each year (an average of 1,500) to upgrade and improve the City’s housing stock. Each of the 475 properties identified were sent information regarding the City’s Home Improvement Program in the hopes they would qualify and apply for City assistance.

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Asillustrated in Table H‐8, the vast majority of Fountain Valley’s housing stock (87% of ownership and 82% of all housing) was constructed prior to 1980. In fact, nearly all of the City’s housing stock was constructed during the 1960s and 1970s, shortly after incorporation occurred in 1957.

Additionally, according to the Census, a fraction of a percent of housing units (about 55) lacks complete plumbing facilities and two percent (370) lack complete kitchen facilities. The absence of fundamental facilities is likely associated with lower income households unable to fund such improvements. Finally, the presence of lead‐based paint can be a hazardous condition, but the City estimates the total number to be low. Since testing began in 2002, only two homes of over 100 tested contained any lead‐based paint hazards, both of which were minimal amounts.

TABLE H‐8
HOUSING STOCK IN FOUNTAIN VALLEY BY TENTURE BY YEAR BUILT, 2019 Year Built
Owner Renter Total
Units Percent Units Percent Units Percent
2014 or later 39 0% 0 0% 39 0%
2010 to 2013 146 1% 46 1% 192 1%
2000 to 2009 421 3% 378 7% 799 4%
1990 to 1999 302 2% 414 8% 716 4%
1980 to 1989 961 7% 746 14% 1707 9%
1970 to 1979 5,317 41% 2,037 37% 7354 40%
1960 to 1969 5,198 40% 1,550 28% 6748 37%
1950 to 1959 488 4% 274 5% 762 4%
1940 to 1949 26 0% 26 0% 52 0%
1939 or earlier 56 0% 44 1% 100 1%
Total 12,954 100% 5,515 100% 18,469 100%
Source: 2019 ACS 5‐Year Estimates, Table B25036
Household Characteristics
Household Type
There were an estimated 18,469 householdsin Fountain Valley in 2019. More than three quarters of these households (77%) were family households, which is higher than the overall county average (72%). The single‐family nature of Fountain Valley combined with its excellent schools continues to attract more family households compared to elsewhere in the county. There are a total of 5,941 households headed by a senior, which is approximately 32% of all Fountain Valley households.

Compared to 2010, it appears that many households are aging in place as their children grow up and move out. The City expects the married with children percentage to drop as parents age in place. Some may wish to find other housing options without a need for the space desired to raise a family. As housing development has plateaued, so too has household size. Since 2010, the average household size has remained relatively constant, declining slightly to 2.91 persons per household in 2021.

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TABLE H‐9
COMPOSITION OF HOUSEHOLDS IN FOUNTAIN VALLEY, 2010 AND 2019 Characteristics
Households Percent of Total
2010 2019 2010 2019
Families
Married with Children 4,906 4,652 27% 25%
Married without Children 6,467 6,622 35% 36%
Other Families   2,834 2,945 15% 16%
Nonfamilies
Single‐Person 4,499 4,250 24% 23%
TOTAL 18,706 18,649 100% 100%
Average Household Size 2010: 2.94   /   2021: 2.91
Source: Census ACS 5‐Year Estimates 2015‐2019; California Department of Finance (2010 and 2021 household size estimates) Household Tenure
As previously shown in Table H‐7, approximately 70% of housing units in the city are owner occupied, with nearly all ownership households residing in single‐family detached and single‐ family attached housing units. Renter households, representing the balance of 30% of housing units, primarily live in apartment complexes though a large number, (almost 2,000) live in single family homes. The rate of homeownership countywide (57%) is much lower by comparison.

Vacancy Rates
The residential vacancy rate, a translation of the number of unoccupied housing units on the market, is a good indicator of the balance between housing supply and demand in a community.

When the demand for housing exceeds the available supply, the vacancy rate will be low.

Concurrently, a low vacancy rate drives the cost of housing upward to the disadvantage of prospective buyers or renters.

In a healthy housing market, An optimal vacancy rate is generally considered about 5% for rental units and 2.0% for owner‐occupied units. Ideally, these vacant units would be distributed across a variety of housing types, sizes, price ranges and locations within the City. This allows adequate selection opportunities for households seeking new residences.

The State of California Department of Finance reportsthat the overall City vacancy rate was 3.5% as of January 2021 for all housing units. Census data indicate a 1.3% vacancy for rental and 0.2% for ownership units. Any of these rates indicate that the housing market is fairly tight with little room for buyers or renters to find a suitable unit or negotiate a lower purchase or rental price.

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Household Income
One of the most obvious factors in housing affordability is household income. While above‐ moderate and even moderate income households may have more discretionary income to spend on housing, lower income households will likely expend a larger portion of their income on housing and may have little remaining to secure basic necessities. While 43% of Fountain Valley households have income that is larger than 120% of the county median income, approximately 37% of Fountain Valley households have incomes below 80% of the County median income. The majority of lower‐income households are renters, indicating a need for affordable rental opportunities. An estimated 5% of Fountain Valley families had an annual income below the federal poverty level in 2019.

TABLE H‐10

HOUSEHOLD INCOME DISTRIBUTION IN FOUNTAIN VALLEY
Income Category Households Percentage
Very Low (0–50% AMI) 4,135 22%
Low (50–80% AMI) 2,855 15%
Moderate (80–120% AMI) 3,504 19%
Above Moderate (120%+ AMI) 8,033 43%
Total 18,527 100%
Source: SCAG 2021‐2029 RHNA Methodology
Housing Inventory and Market Conditions
This section summarizes the housing inventory and prevailing market conditions in the City of Fountain Valley. Analysis of current market conditions provides insight into the City’s existing stock of affordable housing. Understanding past housing trends can also indicate the City’sfuture ability to meet housing needs.

Housing Costs and Affordability
The affordability of housing concerns the balance between a household’s financial means and the cost of adequate housing and amenities. The costs of homeownership and renting can be compared to a household’s ability to pay for housing, based on a percentage of the median income for Orange County and current market prices. Housing costs are driven by the price of raw land, infrastructure costs (e.g., sewer and water), construction costs, supply relative to demand, and financing costs. The diminishing supply of developable land in Fountain Valley, combined with the ongoing rise in housing prices throughout southern California, have driven up the cost of both ownership and rental housing in Fountain Valley.

Ownership Housing Prices
Most ownership housing in Fountain Valley is single family homes. The value of these homes varies based on the type, size, and location. Smaller condominium units are typically the least expensive, while large, upgraded single‐family homes are typically the most expensive.

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Average for‐sale home price in Fountain Valley reached over $800,000 in 2019 and now surpasses $1 million according to recent data from Zillow (as of September 2021). Mortgage rates, however, have steadily declined from 8% in 2000 to less than 5% in 2010 to an average of rate below 3% for a 30‐year fixed loan in 2021. Even those with poor to fair credit scores can obtain loans for around 4%. These lower rates offset some portion of the increases in housing costs occurring over the same time period.

However, the overall cost of buying a new home in the City of Fountain Valley will remain an unlikely option for lower and moderate‐income households without substantial financial assistance. The existing stock of resale units will provide some homeownership opportunities for moderate income households, particularly for smaller units in older areas of the community and in condominium projects.

Rental Housing Prices
While rental prices have increased more slowly than sale prices, relatively few rental properties have been recently constructed in Fountain Valley. As of September 2021, the average rent was approximately $1,500 for a studio, $1,800 for a one‐bedroom, $2,100 for a two‐bedroom, and $3,300 for a three‐bedroom, and $3,900 for a four‐bedroom unit in the city (Zumper.com). As previously noted, a large number ofsingle family homes are rented in Fountain Valley; these units tend to have higher rents compared to apartments, though they also offer more bedrooms.

A comparison of market prices with the rental affordability limits presented in Table H‐11 indicates that the rental market serves moderate and above moderate‐income households, with some existing rental units also priced low enough for some lower income households. Rental units require less land and can be built at higher densities than many ownership products.

Additionally, rental units do not require the same level of amenities as is expected in ownership developments. The construction of additional rental units represents a key step in providing affordable housing opportunities for current and future moderate‐income households.

Housing Affordability
State housing policy defines housing affordability as housing costs equaling no more than 30% of a household’s annual income, although the equity and tax benefits of homeownership may permit a higher percentage of income (35%) to be used for moderate income housing costs. Table H‐11 identifies the maximum affordable rents and purchase prices by income category for a one‐ person, two‐person, and four‐person household based on 2020 state income limits. Note that the various local, state, and federal housing programs may require different calculations of maximum affordable rent or purchase prices.

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TABLE H‐11

AFFORDABLE RENT AND HOME PURCHASE PRICE IN FOUNTAIN VALLEY Income Category   Annual Income Limit1
Maximum Affordable
Rent Payment2 Purchase Price3
One‐Person Household
Extremely Low (up to 30%) $26,950   $674 $84,100
Very Low (31%–50%)   $44,850   $1,121 $176,000
Low (51–80%)   $71,750   $1,794   $314,000
Median Income   $72,100   $1,803   $315,800
Moderate (80 to 120%)   $86,500 $2,163   $389,700
Two‐Person Household
Extremely Low (up to 30%) $30,800 $770   $103,900
Very Low (31%–50%)   $51,250   $1,281   $208,800
Low (51–80%)   $82,000   $2,050   $366,600
Median Income   $82,400   $2,060   $368,600
Moderate (80 to 120%)   $98,900 $2,473   $453,300
Four‐Person Household
Extremely Low (up to 30%) $38,450 $961   $143,100
Very Low (31%–50%)   $64,050   $1,601   $279,600
Low (51–80%)   $102,450   $2,561   $471,500
Median Income   $103,000   $2,575   $474,300
Moderate (80 to 120%)   $123,600 $3,090   $580,000
Source: PlaceWorks and Zillow, 2020

1. Annual income limits based on HCD income limits for Orange County for 2020.

2. Calculated as 30% of income divided by 12 months; assumes set‐asides for utilities.

3. Includes 10% down payment provided by the owner, 30‐year period, 4% APR, 1.1% property tax, and set‐asides for monthly debt, utilities, real estate taxes, and homeowners insurance.

Assisted Housing Developments
Inventory of Assisted Units
State law requires the City to identify, analyze, and propose programs to preserve housing units that are currently deed restricted to low income housing use and will possibly be converted to market rates within 10 years of the start of the planning period (2031). There are five housing projects in the city that were funded either exclusively through federal housing programs or with a combination of federal and local sources. They provide affordable housing units for senior citizens, disabled persons, family households, and low and moderate‐income households. One project (Heil Park) is at risk of converting to market rate by 2031. After a listing of all assisted units, an analysis of preserving at‐risk units is provided.  Prado Family Homes. Through the contribution of over $8 million in City Redevelopment Funds, the City partnered with Related California to develop a 50‐unit affordable housing project along Harbor Boulevard. A total of 41 units will be reserved for lower income households (30% to 60% of AMI), 8 units designated for permanent supportive housing for veterans, and one unit for an onsite manager. Prado Family Homes will offer 23 one‐ bedroom, 14 two‐bedroom, and 13 three‐bedroom apartments. The units are currently under

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construction with occupancy expected in 2022. Affordability will be preserved for a 55‐year term (from date of release of construction covenants) and is therefore not at risk of conversion by 2031.
 Jasmine at Founders Village Manor. Situated on a 12‐acre site that is owned by the local school district (17911 Bushard Street), the Meta Housing Corporation developed 156 one‐ and two‐bedroom units for lower‐income senior households (76 units at max 50% (very low income) and 80 units as maxto 6120% AMI (moderate income)) along with a senior center in 2004. A variety of funding sources enabled the construction of this project, including 9% tax credits, financing from the City’s Redevelopment Agency, and financing from the County of Orange. Meta Housing continues to own this apartment community today, subject to a ground lease with the Fountain Valley School District. The Fountain Valley Village Senior Center is now owned and operated by the City of Fountain Valley. Project affordability (55‐ year term) does not expire until 2058 and is therefore not at risk of conversion by 2031.  Liberty at Founders Village. The Liberty complex is a 54‐unit affordable condominium project for low and moderate income persons 55 and older completed in 2004 (directly to the north of the Jasmine at Founders project). Redevelopment housing set‐aside funds were used to assist in the development. Project affordability (45‐year term) does not expire until 2048 and is therefore not at risk of conversion by 2031.
 Guadalupe Manor. Constructed in a C1 Zone at 17103 Magnolia Street, Guadalupe Manor offers 70 units reserved for low‐income households (max 50% AMI). The project used a variety of funding sources, including Section 202, Section 8, and CDBG land write‐down. Of the 70 units, 17 are studios and 54 are one‐bedroom units. Seven units are reserved for low‐ income disabled persons over the age of 18 and the balance (63 units) are reserved for low‐ income seniors. The project‐based Section 8 contract wasrenewed in 2018 through 2038 (20‐ year term) and is therefore not at risk of conversion by 2031.  Heil Park. In 1993, the City of Fountain Valley, through a partnership with the Olson Company, developed 24‐unit two‐ and three‐bedroom condos, with the sales price capped at an amount that was affordable to low‐income homebuyers earning at or below 80% AMI. The City subsidized the Heil Park project (19110  ‐  19157 Heil Avenue) with CDBG funds infused through a land sale write‐down under which the City‐owned site was sold to the developer at a below market price. The developer subsequently sold the units to individual buyers who became the owner and occupants of the units, with restrictions on resale subject to affordability thresholds. Once Tthe 30‐year term expires in on October 30, 2023, the current property owners will be able to sell the units at the market price and receive the full equity of the sale. and the units are at risk of converting to market rate before 2031While the 24 units are still considered at‐risk for conversion during the planning period and will likely transition out of the City’s housing stock as income‐restricted units, the current owners (who are all occupants) will not be displaced or face higher housing costs. The probability of preservation is low because the City, or other entity, would have to buy each unit (at present market value) and make it available at below market value.

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Costs of Replacement or Presevation for Units at Risk
Replacement
The first examined method for preserving at‐risk affordable housing isreplacement of these units through the construction of new units and the application of new affordability covenants. The cost of developing new affordable housing units varies according to the average land value in the city, type of construction, density, and variety of soft costs. Four newly constructed affordable housing projects were examined to determine the estimated cost to replace at‐risk affordable housing units: Prado Family Homes in Fountain Valley, The Crossroads at Washington in Santa Ana, Cass Paloma in Midway City, and The Grovesin San Juan Capistrano. The development costs for these projects were analyzed using data from the CTCAC to derive an average per‐unit development cost for new construction projects in Orange County. These development costs include land and acquisition, construction, architecture and engineering, interest and financing charges, developer fees, and other miscellaneous soft costs. The average cost to develop a new affordable unit is approximately $517,000. Therefore, the total cost to build an equivalent number (24) affordable housing units would be $12.4 million.

Cost of Preservation
The next examined method for preserving at‐risk affordable housing is the acquisition of the 24 units and the application of new affordability covenants. The cost of extending affordability is based on the acquisition of the units less the maximum affordable sales price. Based on current data from realty listing services (Realtor.com, Trulia, Redfin, and Zillow as of 2022) for comparable homes in Fountain Valley, the average estimated sales values range from $364600,000 to $494700,000 for the 20, two‐bedroom units and $486700,000 to 494800,000 for the 4, three‐bedroom units. The maximum affordable purchase price (see Table H‐11) is $419,250 for a household of three and $471,500 for a household of four. Assuming a household of three for 15 of the 20 two‐bedroom units and a household of four for 5 of the two‐bedroom units and all 4 of the three‐bedroom units yields a delta of between $4,664,870259,000 and $7,136,870 for all 24 units (estimated sales price compared to the maximum affordable purchase price, plus 3% costs of sale). Aside from the substantial cost, Tthe primary obstacle to preserve units in this fashion would be the willingness of the current owner to sell the home.

Acquisition and Rehabilitation
At‐risk affordable housing can be preserved through acquisition and rehabilitation of an existing affordable housing development or market‐rate development to extend or apply new affordability covenants. Several recent acquisition and rehabilitation projects were researched and analyzed to determine the estimated cost to acquire and rehabilitate at‐risk affordable housing units. The development costs for these projects were analyzed using data from the California Tax Credit Allocation Committee (TCAC) to derive the average per‐unit development cost for acquisition and rehabilitation projects in Orange County. The average per‐unit development cost for four acquisition and rehabilitation projects in Orange County is approximately $326,000 (Jamboree Econo Lodge Apartments and Hermosa Village Phase II in Anaheim and Hermosa Vista Apartments and Huntington Pointe Apartments in Huntington

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Beach). Based on this average, the estimated acquisition and rehabilitation costs to preserve an equivalent number (24) of affordable housing units would total approximately $7.8 million.

Qualified Entities to Acquire and Manage Affordable Housing The State maintains a list of EntitiesInterested in Participating in California’s First Right of Refusal Program. This list, provided below, includes entities interested in properties in Orange County and several entities interested in properties in any county in the State. It is important to note that, if funds are available, the City would also be a qualified entity to acquire and preserve affordable housing. The Fountain Valley Housing Authority is the primary agency providing affordable housing opportunities in Fountain Valley and is the Successor Agency to the former Fountain Valley Redevelopment Agency.

Innovative Housing Opportunities, Inc. Abbey Road, Inc
ROEM Development Corporation CSI Support & Development Services Coalition for Economic Survival Keller & Company
Poker Flats, LLC Orange Housing Development Corporation Riverside Charitable Corporation Long Beach Affordable Housing Coalition, Inc.

Civic Center Barrio Housing Corp. Nexus for Affordable Housing, Inc.

The East Los Angeles Community Union Jamboree Housing Corporation Housing Corporation of America City of Newport Beach
Hart Community Homes, Inc. Century Housing Corporation
Neighborhood Housing Services of the Inland Empire, Inc.

Financing and Subsidy Resources
A brief list of funding sources that could potentially be used to preserve affordable housing are listed below. Financing affordable housing is a complicated endeavor involving multiple federal, state, and local funding sources. The City is committed to coordinating with property owners of at‐risk units and leveraging available resources to provide financial assistance when possible and available to preserve these at‐risk units and to extend covenants for as long as possible.  Balance of Redevelopment Funds. The City has approximately $3.5 million remaining in former Redevelopment funds. These funds could be available for extending the affordability of at‐risk units, though the City is also evaluating how to facilitate the development of affordable ADUs.
 Home Investment Partnership Funds (HOME). Local jurisdictions may use the federal HOME program funds to develop and support affordable rental housing and homeownership affordability through acquisition and to provide assistance to homebuyers. For the current fiscal year, the City has a fund balance of $327,000, all of which is already assigned to eligible expenses and activities.
 Community Development Block Grant Program (CDBG). Through the Federal CDBG program, HUD provides funding for a range of community development activities. Local jurisdictions can use CDBG funds are awarded for the relevant activities of acquisition, rehabilitation, and homebuyer assistance. The City received an allocation of $344,000 for the current fiscal year

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and has a carryover balance of $133,000, all of which is already assigned to eligible expenses and activities.

Housing Needs
The following analysis of current City housing conditions presents housing needs and concerns relative to various segments of the population. Several factors will influence the degree of demand or need for new housing and housing assistance in Fountain Valley in coming years. The three major categories of existing need considered in this element include:
 Overpayment refers to renters and homeowners who pay more than 30% of their gross incomes for shelter.
 Overcrowding occurs when lower income households cannot afford adequately sized housing and move into a smaller housing unit housing for available money. This may result in overcrowding where more than one person per room occupies a housing unit.  Special needs are those associated with relatively unusual occupations or demographic groupsthat call for very specific program responses,such as preservation of residential hotels or the development of four‐bedroom apartments. State law specifically requires analysis of the special housing needs of the elderly, the disabled, single‐parent households, large families, farm workers, and homeless persons
Overpayment
Overpayment is generally defined as a renter household spending more than 30 percent or an owner household spending more than 35% of gross monthly household income on rent or a mortgage. Eventually this high cost of housing causes individuals with fixed incomes, particularly the elderly and lower income families, to spend a disproportionate percentage of their income for housing. This may cause a series of related financial problems, which may result in a deterioration of housing stock because maintenance must be sacrificed for more immediate expenses such as food, clothing, health care, and utilities. It may also result in the selection of inappropriately sized units that do not suit the space or amenity needs of the household.

Approximately 63% of renter and 42% of mortgage‐holding households in Fountain Valley experience some level of overpayment. The vast majority (70%) of the City’s renter households that earn less than $50,000 spent over half of their income on rent, with roughly two‐thirds of such households paying at least $1,500 per month in rent. A portion of ownership households no longer owe any money on their mortgage resulting in a lower rate (30%) of overpayment overall for owner‐occupied households.

Based on 2013‐20172014‐2018 HUD CHAS data, 8078% of extremely‐low income households that are renters in Fountain Valley experience overpayment. , and 83% of extremely‐low income householdsthat are owners experience overpayment. Nearly all (9193%) of very‐low income that

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are renters and 7479% of low‐income households that are renters experience overpayment. For owners, 51% of very‐low income and 48% of low‐income households experience overpayment.

Overcrowding
In response to higher housing prices, lower income households often settle for smaller, less adequate housing that results in overcrowding. Overcrowding strains physical facilities and can lead to unsatisfying or even unhealthy living environments.

Both state and federal housing law define overcrowded housing units as those in which there are more persons than rooms. Overcrowding is measured by the number of housing units with 1.01 or more persons per room (severe overcrowding is 1.51 or more). The rooms do not include bathrooms, kitchens, and hallways, but includes other rooms such as living and dining rooms. An overcrowded housing unit does not necessarily imply one of inadequate physical condition.

There are approximately 431 overcrowded rental households in Fountain Valley, representing roughly 8% of all rental households. The balance of overcrowded households (306), were owner households, indicating that less than 2% of owner‐occupied households were overcrowded.

Despite the City’s high housing costs, it appears that most lower income households are willing to pay a larger percentage of their income to avoid living in overcrowded conditions.

Special Needs Groups
Certain segments of the population may have more difficulty finding decent, affordable housing due to special circumstances. These “special needs" groups include the elderly, large families, disabled persons, large households, female‐headed households, farm workers, extremely low income households, and the homeless. Under State law, the housing needs of each group are required to be addressed in the Housing Element.

Elderly Persons
The special needs of many elderly households result from their fixed incomes, higher rate of physical disabilities, and need for assistance from others. Elderly is defined as age 65 or older. As of 2019, approximately 10,990 or 20% of Fountain Valley’s residents were elderly and 5,941 or 32% of all households. Of these households, 4,825 own their own home or pay a mortgage while 1,116 rent. An estimated 3,038 elderly residents in Fountain Valley have at least one disability.

As previously discussed, the median age for the City, as well as the County and State, is expected to continue to increase. As the elderly population increases, the need for senior housing and related services also is expected to increase. In terms of housing,seniorstypically require smaller, more affordable housing options and/or assistance with accessibility and home maintenance.

They often require ramps, handrails, lower cupboards, and counters to allow greater access and mobility for wheelchairs or walkers. The City’s development code allows age‐restricted housing in allzones where multifamily housing is permitted and reducesthe parking requirement forsuch developments. They often require ramps, handrails, lower cupboards, and counters to allow

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greater access and mobility for wheelchairs or walkers. The elderly also benefit from living close to or having transportation assistance to shopping and medical facilities. Finally, while some elderly households may retire with adequate savings and/or a pension, many elderly households are likely to be on fixed low incomes and at a greater risk of housing over payment.

The Center at Founders Village is the primary public resource available to seniors and active adults aged 55 and older. In addition to being located on the same grounds as two age‐restricted communities, The Center offers a wide range of health and educational programs, human services, recreational and social activities, and special events throughout the year. The Center is located at the intersection of two large arterial streets with an east‐west bus route that connects to north‐south routes one block in either direction.

Disabled Persons
The Federal Rehabilitation Act of 1973 defines a disabled person as "any individual who has a physical or mental impairment which substantially limits one or more major life activities, has record of such impairment, or is regarded as having such impairment." The disabled population encompasses several distinct groups such as, but not limited to, the physically handicapped, developmentally disabled, and severely mentally ill. The special housing needs of these populations include affordable independent living units, supportive housing, and housing with design features that facilitate mobility and independence. Also, many physically disabled or handicapped persons are living on state disability income benefits. The following types of supportive housing may be desirable for this population:
 Affordable to low‐ and moderate‐income persons
 Wheelchair accessible
 Equipped with roll‐in showers, grip bars, ceiling fans with extended cords, low sinks and light switches, automatic door openers
 Close to public transportation and stores
The State Department of Developmental Services provides community‐based services to developmentally disabled persons through contracted regional centers. The Regional Center Orange County (RCOC) is charged by the State of California with the care of people with developmental disabilities, defined as those with severe, life‐long disabilities attributable to mental and\or physical impairments. RCOC serves approximately 400 people in Fountain Valley with a developmental disability, of which most (361) live with a parent or legal guardian.

Approximately 6,114 Fountain Valley residents (11% of the population) have one or more disability. As expected, the rates of disability are more prevalent in the older population, with about half of the individuals with disabilities aged 65 or older (28% of the totalsenior population).

Rates fall below 10% in those younger than 65. Of the 6,114 total residents with one or more disability, individuals with an independent living difficulty make up approximately 39% of the population. These residents are particularly vulnerable to housing inequalities, as they require

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additional assistance provided by a professional caregiver and/or family member. Program 6a, Support Fair Housing Services, Program 6c, Support for Persons with Disabilities, and Program 6d, Accessibility Modifications for Persons with Disabilities, aim to address the gaps in resources and encourage more equitable housing opportunities.

TABLE H‐12
PREVALENCE OF DISABILITIES IN FOUNTAIN VALLEY BY AGE, 2019 Disability Type
Under 18
years
18 to 34
Years
35 to 64
Years
65 Years
and over Total
With a hearing difficulty 32 19 385 1,299 1,735
With a vision difficulty 51 51 209 515 964
With a cognitive difficulty 325 492 767 940 2,524
With an ambulatory difficulty 17 219 928 1,771 2,935
With a self‐care difficulty 56 114 337 875 1,382
With an independent living difficulty 0 263 704 1,390 2,357 Individuals with one or more disability 419 699 1,958 3,038 6,114 Total individuals 11,025 10,516 23,495 10,990 56,026
Source: 2019 ACS 5‐Year Estimates, Table S1810
Large Households
In 2019, Fountain Valley had an estimated 18,469 total households, of which 2,485 were defined as large households—five or more persons. These large households accounted for 13% of the City's total households, as indicated by the data in Table H‐13. Approximately 13% (1,566) of the City’s owner households and 17% (919) of the City’s renter households are large households.

Large households need more space at affordable housing costs.

Fortunately, Fountain Valley has the housing stock to accommodate its large households.

According to the 2019 ACS, the average number of rooms per housing unit in the City is 6.0.

Additionally, approximately 93% of ownership housing contains three or more bedrooms and roughly 42% of all rental housing contains three or more bedrooms (portions of the latter are likely in single family homes that are rented). Ownership households experience very low rates of overcrowding (below 2%), while approximately 8% of rental households experience overcrowding. While the City’s rental housing stock offers plentiful options (42% with three or more bedrooms compared to 17% of the rental households categorized aslarge households), the 8% rate of overcrowding in rental households This may indicate a need for more affordable larger‐sized rental units. Given the City’s access to excellent school districts, some larger families may be willing to live in housing with only 1 or 2 bedrooms to access schools. Alternatively, some families may be taking in elderly parents who are unable to afford their own housing or need additional care.

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TABLE H‐13
HOUSEHOLDS IN FOUNTAIN VALLEY BY HOUSEHOLD SIZE AND TENURE, 2019 Household Size
Owner Renter Total
Number % Number % Number %
1 person 2,014 16% 1,254 23% 3,268 18%
2 persons 4,437 34% 1,722 31% 6,159 33%
3 persons 2,567 20% 939 17% 3,506 19%
4 persons 2,370 18% 681 12% 3,051 17%
5 persons 893 7% 645 12% 1538 8%
6 persons 325 3% 174 3% 499 3%
7 persons 348 3% 100 2% 448 2%
Total 12,954 70% 5,515 30% 18,469 100%
Source: 2019 ACS 5‐Year Estimates, Table B25009
Female Head of Households
Single‐parent households require special consideration and assistance because of their greater needs for day care, health care, and other facilities. Households headed by single mothers with children tend to have lower incomes. As of 2019, Fountain Valley had 364 female‐headed households with children 18 years or younger; 153 of these households reported an income below the federal poverty level. These special needs households comprise approximately 2% of the City’s total households. Finding quality, affordable childcare is an issue affecting many family households, but especially those headed by single mothers. For any single‐parent household, including single‐mothers, the cost of childcare may be equivalent to or close to the potential income earned by working. For parents of young children, the parent may face a choice of working 40 hours a week to pay for full‐time childcare only to miss the majority of their child’s waking hours. For others, they may work and pay for childcare, butstill lack the income to provide for basic necessities, such as food and housing.

Farm Workers
At the county level, the US Department of Agriculture’s 2017 Census of Agriculture identified a total of 1,772 farm workers. Of these individuals, 62% (1,106) are considered seasonal, as they work fewer than 150 days of the year. At the city level, Tthe 2019 ACS estimates that 14 Fountain Valley residents are employed in agriculture or related industries. There are no parcels designated for agriculture in or adjacent to Fountain Valley and the three farms present in the city are all identified for redevelopment by the property owner (with the Miller site having already permanently ceased agricultural operations).  Persons employed in this broad category are most likely associated with landscape and horticultural jobs. Therefore, the need for housing generated by farm workers is estimated to be nominal and can be adequately addressed by the City’s other programs focused on affordable housing.

State law (Employee Housing Act, Health and Safety Code, Sections 17000‐17062.6) requires the City to explicitly permit farm worker/employee housing. As the City’s Development Code does currently use either term (the closest term would be caretaker’s cottages), Program 6e will

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amend the code to comply with state law. Once the City’s Code is updated, employee housing that serves six or fewer employees shall not be subject to regulations to which other family dwellings of the same type in the same zone are not likewise subject, and farm worker housing consisting of up to 36 bedsin group quarters(farm worker housing complex) or up to 12 dwelling units shall be subject to the same terms applicable to an agricultural use.

Extremely Low Income Households
Extremely low‐income households are defined as those earning no more than 30% of the area median income. Based on 2013‐2017 HUD CHAS data, approximately 2,545 households in the city were categorized as extremely low‐income households. About half (1,335) were renter households and half (1,210) were ownership households. Many of these extremely low‐income households are likely seniors, who are no longer working and are living on a fixed income. Some may be retired households who own their home and no longer pay a mortgage, but others may be living in rental housing and face high ongoing housing costs.

The future housing need for extremely low‐income households can be estimated (per state law) at one‐half of the City’s very low‐income housing allocation. The City’s very low‐income housing allocation for the 2021‐2029 planning period is 1,307 units, resulting in projected need of 653 extremely low‐income households.

Such households could be on the verge of becoming homeless. An extremely low‐income household with annual income up to $38,450 would be able to spend up to $961 per month before overpaying for housing. A two‐person household with annual income up to $30,800 would only be able to spend up to $770 per month before overpaying for housing.

This population can be most effectively served by Section 8 Housing Choice Vouchers and through the construction ofsecond units,single room occupancy units, and income‐restricted apartments and senior housing. Public input indicates that it is difficult to find landlords who will accept HUD vouchers, increasing the difficulty of finding housing and increasing the likelihood and duration of homelessness. Program 2a, Housing Choice Vouchers and Program 2c, Nonprofit Development, aim to address the gaps in resources and encourage more equitable housing opportunities. In particular, the Housing Choice Vouchers program operated by the Orange County Housing Authority reserves (per HUD requirements) 75% of new vouchers for extremely low income households.

Zoning for Various Types of Housing
Extremely low income households can be most effectively served by Section 8 Housing Certificates and Vouchers and through the construction of accessory dwelling units (ADUs), small apartments, single room occupancy units (SROs), and low‐cost senior housing.

Duplexes are currently permitted by right in all residential zones except Single‐Family Residential (R1). Per very recent changes in state law, homeowners may divide their property into two lots and then build two homes on each of those lots, effectively legalizing fourplexes in areas that

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previously only allowed one home. Multifamily uses (including senior housing) are permitted with a conditional use permit in all multiple dwelling zones (R2, R3, and R4). Although, the City does not have the appropriate building stock to accommodate SRO development (all hotel/motel businesses are performing well), the City allows single room occupancy (SRO) units in the C‐2 zone subject to a conditional use permit.

The City recently amended its Development Code to permit ADUs by right in any zone that permits housing by right consistent with state law. Additionally, parking for a new ADU is not required when it is within a one‐half mile walking distance of a public transit. ADUs may be particularly helpful as they may be rented for little or even zero cost (e.g., in the case of a family constructing an ADU for their adult child or aging parent). This pattern was confirmed during a survey of ADU applicants in 2020, which found that 50% of the respondents did not charge rent.

Individuals Experiencing Homelessness
During the past decade, homelessness has become an increasing problem throughout the state.

Factors contributing to the rise in homelessness included the general lack of housing affordable to low and very low income persons, an increased number of persons whose incomes fall below the poverty level, reductionsin public subsidiesto the poor, and the de‐institutionalization of the mentally ill.

The City of Fountain Valley is a member of the County’ Continuum of Care (COC), which is a regional effort to address homelessness. Fountain Valley commits staff to the COC planning and implementation process and providesthe COC Steering Committee critical information regarding the types of resources and programs Fountain Valley currently funds that assist the homeless.

Continuum of Care
A "Continuum of Care" system for homeless persons involves five components:
 Outreach/Needs Assessment: A Continuum of Care begins with a point of entry in which the needs of a homeless individual or family are assessed. In most communities, the intake and assessment component is performed by an emergency shelter or through a separate assessment center. To reach and engage homeless persons living on the street, the homeless service system should include a strong outreach component.  Emergency Shelter: The County’s 2019 Point in Time (PIT) Survey indicates on a countywide basis that 3,057961 individuals and 110 94 families were experiencing unsheltered homelessness, with 2,661 individual seeking and obtaining shelters experiencing average occupancy rates of 79%.
 Transitional Housing: Transitional housing provides rehabilitative services such as substance abuse treatment, short‐term mental health services, and independent living skill classes. Appropriate case management should be accessed to ensure that persons receive necessary services. According to the 2019 County PIT Survey, transitional housing facilities experienced an average countywide occupancy rate of 78% in 2019.

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 Permanent Supportive Housing: Once a needs assessment is completed, the person/family may be referred to permanent housing or to transitional housing where supportive services are provided to prepare them for independent living. For example, a homeless person with a substance abuse problem may be referred to a transitional rehabilitation program before being assisted with permanent housing. Some individuals, particularly persons with chronic disabilities, may require ongoing supportive services once they move into permanent housing.

Countywide Assessment
The County of Orange conducts a countywide housing needs assessment every other year. Needs assessments, point‐in‐time counts, and gap analysis are not conducted on a city‐by‐city basis.

Instead, information is combined from local organizations that serve the homeless. One organization may respond to the needs of homeless persons originating from several cities; thus, the County’s reports provide a countywide overview of the homeless and not any information specific to the City of Fountain Valley.

The County’s 2019 and 2022 Point in Time (PIT) Reports(aka Homeless Census & Survey) provides the following estimates of persons and families that compose homeless subpopulations in the Central Service Planning Area, which encompasses Fountain Valley. The Central Service Planning Area stretches from Newport Beach to Seal Beach along the coast and inland to Garden Grove, Santa Ana, and Tustin. Estimates are summarized below:
 It is estimated that on any given day in 2019, there are were 3,332 homeless persons in the Central Service Planning Area. About 18% of these individuals experienced homelessness as part of a family, with children making up slightly lessthan 7% of all homeless persons. In 2022, the total number of estimated homeless persons declined to 2,714.  In 2019, Rroughly 54% of all homeless individuals are were unsheltered, including 44 children and 140 victims of domestic abuse. Furthermore, oOver 900 individuals were unsheltered and suffering from chronic homelessness. In 2022, the percentage of unsheltered individuals increased slightly to 56%.
 Of the homeless surveyed in the Central Service Planning Area, many indicated that they had a disabling condition. These conditions include a physical or developmental disability, mental illness, substance use issues, and HIV/AIDS. Mental health issues, physical disabilities, and substance use issues were most prevalent.

It is difficult to estimate the number of victims of domestic violence in the County since many cases go unreported. Within the network of service providers in the county, several programs specialize in services for homeless subpopulations. Through proactive outreach or referrals, homelessindividuals and families may reach any component of the County’ssystem of care. Once in the system, the region’s network of service providers is geared toward moving the individual or family through the continuum toward self‐sufficiency.

Homelessness in Fountain Valley

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In 2019, the PIT count found 42 visible homeless persons living in Fountain Valley, ; the PIT in 2021 was postponed due to the COVID‐19 Pandemic. ofOf whichthese, 28 were recorded as unsheltered. The 2022 PIT count (postponed from 2021) recorded 38 homeless individuals; however, all of these individuals are unsheltered. As needed, the Police Department will refer victims of domestic violence to shelters, and other City staff makes referrals to clients who are needing shelter and other supportive services. The backbone of Fountain Valley’s outreach efforts to homeless lies in its Public Service Agency Grant Program that gives funds to shelters.

Zoning for Various Facilities and Housing
 Emergency Shelter. Pursuant to state law, every jurisdiction must provide one or more zoning categories that allow an emergency shelter by right and have adequate capacity to accommodate the unsheltered need. Emergency shelters with up to 30 occupants are permitted by right in the General Commercial (C2) zone. There is capacity to accommodate the 28 unsheltered need among the C2‐zoned properties spread across the city (only one parcel required). The City also permits emergency shelters with a conditional use permit in a Local Commercial (C1) zone.

State law requires the City to identify sites with zoning that permits emergency shelters by right to accommodate the number of people experiencing homelessnessthat are unsheltered in Fountain Valley, which is 38 according to the 2022 PIT. Based on the 30‐person threshold for an emergency shelter to be permitted by right in the C2 Zone, the City must identify at least two sites.  It is important to note that the decision for these sitesto be redeveloped into an emergency shelter is up to the current property owners, although the City, County of Orange, and other agencies or organizations may offer financial or other assistance to facilitate the development of one or more shelters. Other property owners and/or organizations may also develop and/or operate a shelter elsewhere in Fountain Valley. The sites described below are only identified as the best candidates based on current conditions and information.

While there are no vacant parcels zoned C‐2, there are at least three sites that are currently in use and zoned C2 that exhibit the desired characteristics to be redeveloped into an emergency shelter. The first is a pair of adjoining parcels(1.06 acrestotal; 0.84‐acre and 0.22‐ acre) on the southern side of Slater Avenue next to the Fountain Valley Police Department that is currently occupied by a bank, with a single‐story building that was constructed in 1969.

The site has immediate access to OCTA bus stops along Brookhurst Street. The site is also within a short walking distance of the local library and stores that sell fresh and prepared food. The current 6,400‐square foot structure appears to be in good condition and could potentially be reused without significant remodeling. The site and building are large enough to accommodate at least 30 people (allowed by right), and could accommodate the full 38 (or more if needed) with a CUP.

The second and third sites consist of two parcels along the western side of Magnolia Street north of Garfield Avenue. Both parcels currently contain multi‐tenant buildings, that were constructed in 1965. The northern‐most building is 6,500 square feet and the other building

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is 3,900 square feet. Both buildings are in good enough condition to be used in their current form as an emergency shelter. While internal access is shared, the buildings operate independently, have their own parking, and are physically disconnected (by roughly 15 feet).

Accordingly, each building could be redeveloped independently or developed jointly into an emergency shelter(s). The larger building could easily accommodate at least 30 people (allowed by right), and could accommodate the full 38 (or more if needed) with a CUP, while the smaller building would likely accommodate a maximum of 15 to 25 people. The sites have immediate accessto OCTA busstops along Brookhurst Street. The sites are also within a short walking distance of the local library and stores that sell fresh and prepared food.  Low barrier navigation center. In accordance with recent changes to state law, low barrier navigation centers must be allowed by right in areas zoned for mixed use and nonresidential zones permitting multifamily uses. Low barrier navigation centers are defined as a housing‐ first, low‐barrier,service‐enriched shelter focused on moving people into permanent housing that providestemporary living facilities while case managers connect individuals experiencing homelessness to income, public benefits, health services, shelter, and housing. “Low Barrier” means best practices to reduce barriers to entry, and may include, but is not limited to, the following: (1) the presence of partners if it is not a population‐specific site, such as for survivors of domestic violence or sexual assault, women, or youth; (2) pets; (3) the storage of possessions; and (4) privacy, such as partitions around beds in a dormitory setting or in larger rooms containing more than two beds, or private rooms. The City, as part of Program 3e, will update its Development Code to be consistent with state law.

In June 2022, the City Council approved a memorandum of understanding with the cities of Garden Grove and Westminster to jointly develop a low barrier homeless navigation center.

While a location has not yet been selected, the cooperating agencies are currently evaluating the viability of areas in Westminster and Garden Grove.  Transitional and supportive housing. The City currently allows transitional and supportive housing by right in all residential zones. Supportive housing is housing with no limit on length ofstay, that is occupied by a target population, and that islinked to an onsite or offsite service that assists the tenant in retaining the housing; improving their health; and maximizing their ability to live, and, when possible, work in the community. Transitional housing is any housing configured as a rental housing development but operated under program requirements that require the termination of assistance and recirculating of the assisted unit to another eligible program recipient at a predetermined future point in time that shall be no less than six months from the beginning of the assistance. These facilities are subject to the same requirements as a traditional single and multifamily development. The City, as part of Program 3d, will ensure that such uses are also permitted by right in the new zones to be established (R5, MU1, and MU2), consistent with state law.  Single room occupancy. A single room occupancy (SRO) unit is a living unit (alongside five or more other such units in one building) that has a minimum area of one hundred fifty square feet and is limited to persons of low and very‐low income. The City permits SROs in the C‐2 zone subject to a conditional use permit.

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Current facilities serving those experiencing homelessness in Fountain Valley are shown in Table H‐14. These facilities offer emergency and short‐term shelter, as well as financial, employment and family counseling.

TABLE H‐14

ORANGE COUNTY HOMELESS SHELTERS AND TRANSITIONAL HOUSING # Shelter Location Organization Population Served Max
Stay Charge
1 Alternative Sleeping
Location Day Program Laguna Beach FriendshipShelter Singles 30days $‐‐ (no fee) 2 Armories Santa Ana;
Fullerton City Net Open (adults) n/a $‐‐ (no fee)
3 Bethany Women’s
Shelter Santa Ana Mercy HouseLiving Centers Single women 6 mos. Sliding Scale 4 Beverly’s House Santa Ana Orangewood
Foundation
Women
age 18–24 n/a n/a
5 Casa Youth Shelter Los Alamitos Casa Youth At risk kids age 12–17 n/a $‐‐ (no fee)
6 Domestic Violence
Emergency Shelter Confidential Human Options Survivors ofdomestic violence 45 days
24 at
$4.00/day
7 Domestic Violence
Emergency Shelter Seal Beach IntervalHousing
Survivors of
domestic violence
and their children
n/a $‐‐ (no fee)
8 Domestic Violence
Transitional Shelter Seal Beach IntervalHousing
Survivors of
domestic violence
and their children
n/a $‐‐ (no fee)
9 Eli Home Seal Beach Eli Home Women w/kids 12
years or younger
n/a sliding scale
10 Emergency Maternity
Shelter Orange Casa Teresa Preg. Adults n/a $‐‐(no fee) 11 Family Promise of
Orange County, Inc. Confidential Family Promiseof OC
Couples w/children
18 and under 2 mos. $‐‐ (no fee)
12 Gerry House Santa Ana Straight Talk
Clinic, Inc.

Adult substance
users/HIV/AIDS
90 days
sliding scale
(accepts
MediCal)
13 Hannah’s House Orange Casa Teresa Singles and
pregnant n/a n/a
14 Homeless
Intervention Shelter   Placentia H.I.S. ‐ OC Families  and singles 4 mos. n/a 15 House of Hope Confidential Orange County
Rescue Mission
Single women or
women w/kids
18 mos.
$‐‐
16 La Mesa Emergency
Shelter Anaheim IlluminationFoundation
Singles, couples,
and/or families n/a $‐‐ (no fee)
17 Laura’s House Garden Grove Laura’s House Survivors of domestic violence
30‐45
days n/a
18 Laurel House Tustin Orange County
Rescue Mission
Girls
age 12‐17
6‐18
mos. sliding scale
19 Mary’s Path Santa Ana Teen Shelter Pregnant teens n/a $‐‐

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TABLE H‐14

ORANGE COUNTY HOMELESS SHELTERS AND TRANSITIONAL HOUSING # Shelter Location Organization Population Served Max
Stay Charge
20 Joseph House Santa Ana Mercy House Single men
24 mos.
$350/month
21 New Vista Fullerton Pathways of
Hope Families 30‐45days $‐‐
22 Precious Life Shelter Confidential Precious Life Pregnant adults 30 days $‐‐
23 Regina House Confidential Mercy House Single women
w/kids
30‐90
days $‐‐
24 Rising Tide
Communities Tustin OrangewoodFoundation
Foster youth
age 18 and older n/a $200/month;↑$50/3 mos.
25 Salvation Army
Hospitality House Santa Ana Salvation Army Homeless men 21 days
per
45 days
$‐‐
26 Salvation Army
Human Trafficking
Interim Housing
Confidential Salvation Army Human trafficking
victims   n/a n/a
27 Salvation Army
Transitional Housing   Confidential Salvation Army At risk families n/a n/a 28 Second Step Confidential Human Options Survivors of
domestic violence
12 mos. 1/3 of income
29 South County
Outreach
Lake Forest;
Laguna Nigel;
Mission Viejo
South County
Outreach Families 6‐9mos.
30% of income
30 The Link Santa Ana Illumination
Foundation
Singles, couples,
and/or families $‐‐ (no fee)
31 The Sheepfold
Transitional Shelter Orange The Sheepfold
Survivors of
domestic violence
and their children
6 mos. $‐‐ (no fee)
32 Thomas House Garden Grove Thomas House
Family Shelter Families n/a 0 for 6 mos.20% of income
33 Veterans First Santa Ana Veterans First
of OC Veterans n/a 25% of income
34 Vietnamese League Garden Grove Vietnamese
League of OC Asian refugees n/a n/a

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Housing Constraints
Governmental Constraints
Housing affordability is influenced by factors in both the private and public sectors. Actions by the City and by the surrounding jurisdictions impact the amount of housing developed, its type, form, location, and final price.  Actions, like land use controls, site improvement requirements, building codes, fees, and other local programs, meant to improve the overall quality of housing may have the unintended consequence ofserving as a constraint to housing development. Based on the information provided below, the City’s land use controls, fees, and permitting processes currently do not present a constraint to residential development.

Land Use Controls
General Plan Land Use Element
State law requires each city to have a general plan that establishes policy guidelines for future development. The land use element identifies the location, distribution, and density of land uses throughout the City, with land use categories designating single family residential, multifamily housing and mixed‐use development at a variety of densities. Conventional residential designations currently permit housing at maximum densities up to 30 units per acre. The City also adopts specific plans to allow for a mix of commercial and residential uses at densities that reach well over 30 units per acre. The City will update its Land Use Element to reflect changes in zoning identified in this Housing Element.

Development Code
The City’s Development Code and zoning regulations establish requirementsrelated to permitted uses, height, density, lot area, yard setbacks, and minimum parking spaces. Higher residential zoning densities reduce land cost per unit and thus facilitate the development of affordable housing. Generally, restrictions on land use or restrictive development standards, such as high number of parking spaces and large setbacks, can increase housing costs.

The City’s Development Code regulates community development by establishing allowable uses and development standards for numerous residential, mixed use, and other zones. Additionally, a Planned Development (PD) overlay zone ensures that new development can be built with similar, more flexible standards(such assetbacks and minimum lotsize) asthose of development existing at the time of incorporation.

Conventional,supportive, and transitional housing are permitted in the City’sresidential districts.

Emergency shelters are permitted by right in the General Commercial (C2) district and permitted with a conditional use permit in the Local Commercial (C1) district along with single room occupancy units. As shown in Tables H‐15 and H‐16, these districts allow for a variety of housing types and a range of owner and rental housing options.

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Concurrent with the General Plan update, the City will amend the Development Code to add a Very High Density Residential (R5) Zoning District. The R5 Zone will match the development standards and permitted uses for the Mixed Use 1 (MU1) Zone, but only permit residential uses.

TABLE H‐15

ZONING FOR A VARIETY OF HOUSING TYPES IN FOUNTAIN VALLEY General Plan Designation Zoning District Max Density Housing Types Residential
Low Density Residential Single‐Family Residential R1 5 du/ac Detached single family Low Medium Density
Residential
Garden Homes GH 10.8 du/ac Detached single family, small lot Low Density Multiple
Dwelling R2 10 du/ac Detached/attached single family,duplex, multifamily Medium Density Residential Medium Density Multiple
Dwelling R3 15 du/ac Detached/attached single family,multifamily High Density Residential High Density Multiple
Dwelling R4 30 du/ac Multifamily
All of the above All of the above  ‐‐  Same as
above
ADUs and transitional and
supportive housing
Mixed Use
Mixed Use 1 Mixed Use 1 MU1 65 du/ac Multifamily
Mixed Use 2 Mixed Use 2 MU2 40/55 du/ac Multifamily
Commercial
Local Commercial Local Commercial C1 0.35 FAR Emergency shelter General Commercial General Commercial C2 0.50 FAR Emergency shelter, low barrier navigation center1
, SRO
Office Commercial Professional Office   CP 0.50 FAR Care homes Note:

1. Upon implementation of the related program in the City’s Housing Strategy, the City will update its Development Code to be consistent with state law.

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TABLE H‐16

ZONING FOR A VARIETY OF HOUSING TYPES IN FOUNTAIN VALLEY Residential Use
P= Permitted Use (by right)
C= Conditional Use Permit
Residential Commercial
R1 GH R2 R3 R4 C1 C2 CP
Accessory Dwelling Unit P P P P P ‐  ‐  ‐
Dwelling, Single Family P C P ‐  ‐  ‐  ‐  ‐
Dwelling, Multiple Family ‐  ‐  C C C ‐  ‐  ‐
Dwelling, Duplex ‐  P P P P ‐  ‐  ‐
Emergency Shelter ‐  ‐  ‐  ‐  ‐  C P ‐
Farm Worker Housing (small) P P P P P ‐  ‐  ‐
Farm Worker Housing (large) ‐  ‐  ‐  ‐  ‐
Low Barrier Nav Center1 ‐  ‐  P P P ‐  P ‐
Manufactured Home P C P ‐  ‐  ‐  ‐  ‐
Mobile Home Park/Subdivision ‐  ‐  ‐  C C ‐  ‐  ‐
Residential Care Home (small) P P P P P C ‐  ‐
Residential Care Home (large) C C C C C C ‐  ‐
Single Room Occupancy ‐  ‐  ‐  ‐  ‐  ‐  C ‐
Supportive Housing P P P P P ‐  ‐  ‐
Transitional Housing P P P P P ‐  ‐  ‐
Note:

1. Upon implementation of the related program in the City’s Housing Strategy, the City will update its Development Code to be consistent with state law.

TABLE H‐16

ZONING FOR A VARIETY OF HOUSING TYPES IN FOUNTAIN VALLEY Residential Use
P= Permitted Use (by right)
C= Conditional Use Permit
Residential Commercial Mixed Use
R1 GH R2 R3 R4 C1 C2 CP MU1 MU2
Accessory Dwelling Unit P P P P P ‐  ‐  ‐  P P
Dwelling, Single Family P C P ‐  ‐  ‐  ‐  ‐  ‐  ‐
Dwelling, Multiple Family ‐  ‐  C C C ‐  ‐  ‐  P P
Dwelling, Duplex ‐  P P P P ‐  ‐  ‐  ‐  P
Emergency Shelter ‐  ‐  ‐  ‐  ‐  C P ‐  ‐  ‐
Employee Housing (small) 1 P P P P P ‐  ‐  ‐  ‐  ‐
Employee Housing (large) 1 CUP CUP CUP CUP CUP       ‐  ‐ Low Barrier Nav Center 1 ‐  ‐  P P P ‐  P ‐  ‐  ‐
Manufactured Home P C P ‐  ‐  ‐  ‐  ‐  ‐  ‐
Mobile Home Park/Subdivision ‐  ‐  ‐  C C ‐  ‐  ‐  ‐  ‐ Residential Care Home (small) P P P P P C ‐  ‐  CUP CUP Residential Care Home (large) C C C C C C ‐  ‐  CUP CUP Single Room Occupancy ‐  ‐  ‐  ‐  ‐  ‐  C ‐  ‐  ‐
Supportive Housing P P P P P ‐  ‐  ‐  P P
Transitional Housing P P P P P ‐  ‐  ‐  P P
Note:

1. Upon implementation of the related program in the City’s Housing Strategy, the City will update its Development Code to be consistent with state law.

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TABLE H‐17

RESIDENTIAL ZONE DEVELOPMENT STANDARDS IN FOUNTAIN VALLEY Development Standard
Residential Zoning Districts
R1 GH R2 R3 R4
Minimum Lot Area 6‐7,200 sf 1,800 sf 7,000 sf 7,200 sf 10,000 sf Minimum Lot Width 45‐65 ft 23 ft 60‐65 ft 60‐65 ft 60‐65 ft Minimum Lot Depth 90 ft Varies  ‐  ‐  ‐
Maximum Lot Coverage 45‐55% 30% 40% 40% 40%
Maximum Height 27 ft/2 st 30 ft/2 st 28 ft/2 st 28 ft/2 st 35 ft/3 st Minimum Front Yard Setback 20 ft Varies 20 ft 20 ft 20 ft Minimum Side Yard Setback 5‐10 ft Varies 5‐10 ft 5‐10 ft 5‐10 ft Minimum Rear Yard Setback 10‐25 ft Varies 25 ft 25 ft 25 ft Minimum Building Separation  ‐  ‐  15‐20 ft 15‐20 ft 15‐20 ft Minimum Open Space, Private (1) 1,000 sf 1,000 sf 100 sf/unit 100 sf/unit 100 sf/unit Minimum Landscape Coverage 50% frnt yd 25% 15% 15% 15%
Development Standard
Mixed Use Zoning Districts
MU‐1 MU‐2
Minimum Lot Area 1 acre 5.01 acres
Minimum Lot Width ‐  ‐
Minimum Lot Depth ‐  ‐
Maximum Lot Coverage ‐  ‐
Maximum Floor Area Ratio 2.25 2.20
Maximum Height 5 stories & 55 ft 6 stories & 65 ft
Minimum Front Yard Setback 10 ft average, 5 ft minimum 15 ft average, 10 ft minimum Minimum Side Yard Setback Abutting R1/GH zones – 30ft w/ step‐backs or 100 ft no step‐backs Minimum Rear Yard Setback Abutting R2/3/4 zones – 10 ft w/ step‐backs or 20 ft with no step‐backs Minimum Building Separation 20 ft average, 10 ft minimum Minimum Open Space 10% of site area (<2 acre site) or 15% of site area (>2 acre site) PLUS 100 sf per residential unit
Minimum Landscape Coverage 15% of site area
Development Standard
Commercial Zoning Districts
C1 C2 CP
Minimum Lot Area 10,000 sf 10,000 sf 7,200 sf
Minimum Lot Width  ‐  ‐  ‐
Minimum Lot Depth  ‐  ‐  ‐
Maximum Lot Coverage  ‐  ‐  ‐
Maximum Height 50 ft/4 st 50 ft/4 st 50 ft/4 st
Minimum Front Yard Setback 20 ft 20 ft 20 ft
Minimum Side Yard Setback 0‐20 ft 0‐20 ft 0‐20 ft
Minimum Rear Yard Setback 0‐20 ft 0‐20 ft 0‐20 ft
Minimum Landscape Coverage 15% 15% 15%
Source: Fountain Valley Development Code, Title 21
Note: 1. At least 1,000 square feet of open space in the rear yard is only required for single family detached housing.

Parking Requirements
Parking requirements in the City of Fountain Valley are similar to those imposed by other cities in Orange County. Parking facilities are required to be located on the same lot and reduce the

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amount of available lot area for housing. Parking requirements generally relate to the housing type and number of bedrooms or units. Some uses, however, require fewer parking spaces, such as accessory dwelling units and senior housing facilities. To facilitate the production of affordable housing, the City maintains reduced parking standards for these uses.

Table H‐18 summarizes the current parking standards for residential development in Fountain Valley. Additionally, residential (stand‐alone or mixed‐use) projects that qualify for a density bonus due to the inclusion of affordable housing are eligible for parking reductions under state law. In compliance with state law, the City has evaluated its parking requirements for emergency shelters and determined that the parking requirements are lower than comparable uses (hotels, motels, SROs, and group quarters, including rooming and boarding houses), and residential care homes (senior congregate care) permitted in the C1 and C2 zoning districts.

TABLE H‐18

REQUIRED PARKING STALLS BY USE IN FOUNTAIN VALLEY
Use Required Number of Stalls
Single‐Family
Single‐family, detached:

Up to 4 bedrooms 2 stalls in a garage
5+ bedrooms or homes
larger than 4,000 sf 3 stalls in a garage
Single‐family, attached Same as single family detached
Mobile Home Park 2 covered for unit, plus 0.2 visitor stall / unit provided independent of the unit Accessory Dwelling Unit
No parking required beyond that which is required for the primary residence.

Pursuant to California Government Code Section 65852.2, replacement parking cannot be required if an existing garage is converted to an ADU.

Multifamily
Duplex, condos, other
attached dwellings
Stalls per Unit:

Covered Uncovered     Visitor
1 bedroom or less 1.0 0.5         25% of total required spaces 2 bedrooms   1.0 1.0         25% of total required spaces 3 bedrooms 2.0 0.5         25% of total required spaces More than 3 bedrooms 2.0 0.5/room over 3 25% of total required spaces Accessory Dwelling Unit
No parking required beyond that which is required for the primary residence.

Pursuant to California Government Code Section 65852.2, replacement parking cannot be required if an existing garage is converted to an ADU.

Age‐Restricted or Special Needs Housing
Convalescent Hospital 1 stall for each bed plus 1 space for each 400 sf of office area Emergency shelter 1 space per 4 beds and/or 0.5 spaces per bedroom designed for families with children, plus 1 staff member
Senior Housing   1 space per unit with half the spaces enclosed, plus 1 guest stall per 10 units Senior Congregate Care 0.5 space per unit, plus 1 guest stall for each 4 units Single or Multiple Family Same as single‐family and multiple family listed above Single Room Occupancy 0.5 spaces per room, with 1.0 spacers per double occupancy room, plus 1 per staff Density Bonus

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The City follows state law and will update its Development Code regulations on density bonuses to comply with the latest changes in Government Code Section 65915–65918, which require jurisdictions to grant a density bonus in exchange for income‐restricted housing. Legislation passed in 2020 increased the maximum amount of density bonus projects could receive. Prior to updating its Development Code, the City will follow and apply state law to proposed projects.

Residential projects that restrict as little as five percent of the proposed housing units as affordable housing would be entitled to a density bonus and additional incentives and concessions, such as a reduction in parking requirements or setbacks. Table H‐19 lists the potential density bonuses(perstate law as of August 2021) for projectsthat incorporate income‐ restricted housing.

TABLE H‐19
DENSITY BONUSES FOR PROJECTS WITH INCOME‐RESTRICTED HOUSING Household Income Category
of Affordable Units
Min % of Base Units
Reserved to Qualify
for Bonus
Density Bonus
Min Bonus
(% Base Units)
Added Bonus
per +1%
affordable
Max Bonus
(% Base Units)
Very Low 5% 20% 2.5% 50%
Lower 10% 20% 1.5% 50%
1+ acre of land dedication for
very low 10% 15% 1% 35%
>80% Low/ <20% Mod 100% 80%  ‐‐  80%
Low/mod within ½‐mile of
major transit stop
100% No Max  ‐‐  No Max
Moderate (Condo) 10% 5% 1% 50%
Source: Sections 65400 and 65915 of the California Government Code, as of August 2021.

Note: Other projects entitled to density bonus include:
10% very low transitional foster youth, disabled veterans, or homeless 20% very low college students in housing dedicated for accredited colleges Any age‐restricted senior housing development or mobile home park (no affordable required) Accessory Dwelling Unit Requirements
In response to the worsening statewide housing shortage, California Government Code Section 65852.2 streamlines and promote the permitting and approval of accessory dwelling units (ADUs). ADUs are attached or detached structuresthat are constructed on the same lot as a single or multifamily unit and provide complete independent living facilities for one or more occupant; junior ADUs are enclosed within the primary residence and provide partial independent living facilities for one or more occupant. The state and many jurisdictions throughout California recognize that ADUs can provide housing at below market prices (without public subsidy) and serve to meet the special needs of the elderly and low‐income persons such as students or adult children just entering the workforce.

Numerous amendments to state law were made in 2017 and 2020 that require jurisdictions to approve ADUs by right, eliminates or reducesimpact fees, and requiresjurisdictionsto apply only

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limited objective development standards. The City amended the Development Code in March 2020 to provide standards and proceduresfor the development of ADUsin accordance with state law. Additional programs in the Housing Strategy and discussion in the section on Residential Land Resources detail additional efforts the City will enact and promote to facilitate ADU development.

Single Room Occupancy
The City of Fountain Valley conditionally permits the development of single room occupancy (SRO) projects in the General Commercial (C2) zoning district. The Development Code requires rates for the rental of units in an SRO project to be restricted so that 100% of the units in the project are affordable to persons of very low or low income. One ADA accessible unit shall be required for each 20 rooms.

The minimum size of each one‐person unit is 150 square feet, and a two‐person unit must be at least 275 square feet. Double occupancy units are limited to 10% of the project total. Each SRO project must provide full kitchen, bathroom, and laundry facilities either inside each unit or in a common area. Regardless, each SRO unit shall contain a full or partial kitchen, full bathroom, and at least 48 cubic feet of enclosed closet space,
All proposed SRO projects must be renter occupied. For SRO projects that contain 16 or more units, an onsite manager's unit is required. Each SRO project shall provide 0.5 parking stalls for every one‐person unit, 1.0 parking stall for every two‐person unit, and 1.0 parking stall for each staff member. In addition, each SRO project shall provide 1.0 secure bicycle stall for each 3 units.

To ensure that SRO projects remain safe and maintained, each SRO project must be guided by a management plan, which includes, among other things, information about the projected staffing needs, facility management and operations, emergency procedures, security, rental procedures, and proposed rental rates.

Housing for Persons with Disabilities
Building Code Constraints
Under the provisions of California Code of Regulations, Title 24, the City is the enforcement authority for state accessibility laws and regulations when evaluating requests for new construction. Similar to the requirements of the Federal Fair Housing Act of 1998 and the Americans with Disabilities Act (ADA), Title 24 provisions include standards and conditions to be applied to new development to ensure full accessibility for the physically disabled. While compliance with building codes and Title 24 may increase housing construction and rehabilitation costs,such standards are the minimum needed to ensure safety and accessibility for all residents.

The City has adopted the California Building Standards Code and the most recent California Amendments (2019), which includes provisions of the ADA. To further address the needs of disabled residents, the City includes ADA coordination responsibilities to the role of the Building

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Official. Additionally, the City’s Building and Safety Division confirms compliance with all codes and assists residents with the retrofitting of their homes.

Reasonable Accommodation Ordinance
In addition, the City’s Reasonable Accommodation Ordinance provides a process for disabled individuals, or those acting on their behalf, to make requests for reasonable accommodation in regard to relief from the various land use, zoning, or building laws, rules, policies, practices, and/or procedures of the City, and includes a provision of assistance in making the request, as well as for appealing a determination regarding the reasonable accommodation to the Planning and Building Director. The City’s findings required to approve or deny a request for reasonable accommodation, as stated in the Development Code (§21.08.060 Reasonable accommodation).  Whether the accommodation is reasonable considering the nature of the applicant’s disability, the surrounding land uses, and the rule, standard, policy, or practice from which relief is sought
 Whether the accommodation is necessary to afford the applicant equal opportunity to enjoy and use a specific dwelling in the city
 Whether the accommodation will have only incidental economic or momentary benefits to the applicant, and whether the primary purpose of the accommodation is to assist with real estate speculation or excess profit making
 Whether the accommodation will create a substantial adverse impact on surrounding land uses, or a public nuisance, that cannot be reasonably mitigated  Whether the accommodation is reasonably feasible considering the physical attributes of the property and structures
 Whether there are alternative accommodations which may provide an equal level of benefit to the applicant, while minimizing adverse impacts on surrounding land uses and lessening the financial and/or administrative burden of the city
 Whether the requested accommodation would constitute a fundamental alteration of the zoning or building laws, polices or procedures of the city Definition of Family
In some jurisdictions in California, the use and definition of the term “family” has been used to limit or restrict the formation of households that contain more than one unrelated individual; e.g.,restricting occupancy of a single family home to related individuals only, which could exclude occupancy by a disabled individual and their live‐in caregiver. Court rulings state that defining a family does not serve any legitimate or useful objective or purpose recognized under the zoning and land planning powers of the city, and therefore violates rights of privacy under the California Constitution. A zoning ordinance also cannot regulate residency by discrimination between biologically related and unrelated persons.

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The City’s Development Code is consistent with court rulings and defines “family” as “one or more persons occupying a premises and living as a single nonprofit housekeeping unit, as distinguished from a group occupying a boarding or lodging house, hotel, club, orsimilar dwelling for group use.” In addition, the City does not condition project approval based on the relationship of persons occupying a proposed residential dwelling. Given these factors, the City’s definition of “family” does not negatively impact the development of housing for persons with disabilities.

Group Facilities
The City permits small residential care homes facilities (also called residential care facilities) that serve 6 or fewer clients in every residential zone. Large residential care facilities homes serving 7 or more than 6 clients are permitted in every residential zone pursuant to a conditional use permit. There are no specific findings required to approve a large residential care facility. The only condition that is currently subjective for a large residential care home serving 7 or more clients is the determination that granting the conditional use permit would not be detrimental to the public convenience, health, interest, safety or welfare, or injurious to persons, property or improvements in the vicinity and zoning district in which the property is located. Although there have been no applications for such a facility, the City anticipates that items of concern would revolve around operational activities that could generate significant sources of noise. However, the City will, through Program 6e of the City’s Housing Strategy, conduct further evaluation of the potential constraints imposed by the aforementioned subjective condition of approval and remove unreasonable conditions of approval or other requirements. The Development Code does not regulate concentrations of group homes or contain specific site planning criteria for group homes. Any group home would be regulated by the zoning district in which it locates. There are 45 long‐term care facilities in the city caring for approximately 850 dependent adults.

The Development Code provides reduced off‐street parking standards for uses such as convalescent facilities,senior housing complexes, and congregate care facilities. Reduced parking standards help reduce the cost of developing projects oriented toward serving disabled or elderly persons. The existence of numerous long‐term care facilities within the City suggests that the parking standards do not hinder the development of such uses. The reduced parking standards are as follows:
 Convalescent Hospital: 1 stall for each bed plus 1 space for each 400 sf of office area  Senior Housing: 1 space per unit with half the spaces enclosed, plus 1 guest stall per 10 units  Senior Congregate Care Facilities: 0.5 space per unit, plus 1 guest stall for each 4 units Summary of Impacts of Local Land Use Controls
After reviewing the development code, the City determined that the standards set forth do not adversely impact the development of various housing types. The evaluation first considered the uses permitted in each zone and found them either to be consistent with state guidelines or will come into consistency through the implementation of one or more housing programs contained within this element.

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Second, the City evaluated the development standards for each zone that permits residential development, including building envelope, maximum height, and parking requirement. The standards for zones R1, GH, R2, and R3 are not considered a constraint on the development of housing due to the relatively low or medium density nature of the zones. The R1, GH, and R2 zones are intended to accommodate both single family attached and detached products, with the R2 zone maxing out at 10 units per acre. The R3 zone allows up to 15 units per acre and can easily accommodate maximum density within the current standards.

The R4 zone’s maximum density was increased from 20 units per acre to 30 units per acre during the 5th Cycle planning period. The City reevaluated the R4 developmentstandardsto ensure that development can in fact achieve maximum density. On parcels one acre or larger, a housing development could achieve maximum density with a mix ofstudio, one‐, and two‐bedroom units, served by onsite surface parking. For parcels between one‐half and one acre, a housing development could still achieve maximum density with a mix of studio, one‐, and two‐bedroom units, served by onsite surface parking. For parcels smaller than one‐half acre, maximum density could be achieved with a mix of studio, one‐, and two‐bedroom units, served by a combination of surface and tuck‐under parking. This bedroom mix also aligns with the City’s average household size of 2.91 and the projected trend of decreasing household sizes acrossthe southern California region.

The recently adopted Slater Avenue mixed‐use project provided a case study of the recently adopted Mixed Use 1 (MU1) developmentstandards. The MU1 zone appliesto propertiessmaller than 5 acres and permits residential development up to a maximum height of 55 feet (5 stories) and maximum density of 65 units per acre. The zone also requires at least 10% of the ground floor area be occupied by non‐residential uses. Parking requirements are determined based on existing parking standards for both the residential and non‐residential components. The Slater project was able to incorporate 270 residential units (81 du/ac; 33 units reserved for lower income households), 6,660 square feet of non‐residential uses, and 541 parking spaces(177 more than required) on a 3.34‐acre site, with the inclusion of affordable housing and associated waivers/concessions as permitted by state density bonus law provisions.

The applicant was granted the following waivers/concessions: reduction of ground floor retail by 10%; reduction of minimum residential storage requirement by 20%; reduction of publicly accessible open space by 60%; and reduction of minimum square footage for 91 of 129 1‐ bedroom units by 10%. The City evaluated the project and determined that none of the waivers/concessions would have been required to reach the maximum density of 65 du/ac.

Therefore, the development standards are not considered to hinder, or otherwise prevent, the development of residential products at the maximum allowable density. However, the City is, through the implementation of Program 3a, evaluating standards that are cited as required waivers or concessions for proposalsthat would leverage state density bonus provisions with the inclusion of affordable units, with the intent to revise standards that would inhibit the ability to incorporate affordable housing even with the application of state density bonus law provisions.

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Finally, the City reviewed its development code to determine any adverse impacts on the ability to develop housing for individuals with special needs. The review and evaluation found that the City’s code is compliant with all legislative mandates, including the Americans with Disabilities Act, accommodating requests for reasonable accommodations, and permitting processes for group care facilities.

Building Codes and Code Enforcement
Building and safety codes adopted by the City are considered necessary to protect public health, safety, and welfare. However, these codes have the potential to increase the cost of housing construction and maintenance. The City has adopted the 2019 California Building Standards Code (CBSC) along with amendments specific to Fountain Valley. Other development codes enforced by the City include the most recent editions of the California Housing, Electrical, Fire, Plumbing, Mechanical, and Administrative Codes.

The only substantive amendment relates to the fire sprinkler requirement for a single family home renovation or remodel. The CBSC requires the installation of a sprinkler system if 5,000 square feet or more are being renovated or remodeled. The City’s amendment lowered the threshold to 3,500 square feet. In addition, the City considers renovations or remodels equal to 75% or more of the total square footage of a single family home to constitute new construction that would therefore be required to install a sprinkler system. This amendment is not considered to increase the cost of new housing beyond current state requirements. The City’s definition and threshold for determining new construction could increase costs for single family home renovations equal to 75% or more of an existing home. All other amendments are administrative in nature and minor in scale (e.g., swimming pool safety and preliminary soils reports), and do not increase housing costs.

Code enforcement is a critical component of preserving and improving neighborhood quality and preventing situations that may damage residential structures and resident safety. The City employs one full‐time code enforcement officer. Code enforcement officers identify and prescribe solutions to code violations and respond to public complaints. The most common housing code violation related to housing or residential parcels is overgrown vegetation. Vacant lots must be kept relatively free of weeds and vegetation in residential areas must not hang onto sidewalk/street areas. Violators are notified and referred to appropriate sections of the City’s Development Code and relevant programs. If the City is unable to gain voluntary compliance on any code violation, the Code Enforcement Division may issue an Administrative Citation or forward violations to the City Attorney for further action. The City created a Home Improvement Program flyer to inform residents about legal requirements and resources to assist in preserving and improving neighborhoods and homes.

Energy Conservation
The City has promoted energy conservation for residential uses on both educational and regulatory levels. The City supports local utilities in their efforts to provide public information

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and technical assistance to developers and homeowners regarding energy conservation measures and programs. On a regulatory level, the City enforces the State Energy Conservation Standards (Title 24, California Administrative Code). Compliance with Title 24 of the California Administrative Code on the use of energy efficient appliances and insulation has reduced energy demand stemming from new residential development.

Under the 2019 Building Code (in effect as of January 2020), all new single‐family homes and low‐ rise apartment buildings will be required to install solar panels, or tap into community solar power, to compensate for all electricity used by the building (aka zero net energy homes). Homes that truly are not suitable for solar, e.g., shaded by trees or large buildings would be exempt.

While the construction of energy efficient buildings does not necessarily lower the purchase price of housing, it should reduce monthly occupancy costs as consumption of fuel and energy is decreased. Similarly, retrofitting existing structures with energy‐conserving features can reduce in utility costs. Examples of energy conservation opportunities include weatherization programs and home energy audits; retrofit to dual components or piggyback the use of evaporative coolers with air conditioning systems; installation or retrofitting of more efficient appliances and mechanical or solar energy systems; and building design and orientation.

The City’s Building Division staff established a streamlined approval process electrical vehicle charging stations (for any building/site) and solar photovoltaic projects at or below 10 kilowatts in size (for one‐ and two‐family dwellings). The City will continue to evaluate new opportunities to establish or improve city programs and regulations and partner with Southern California Edison to promote energy conservation programs.

The City has facilitated more efficient land use patterns by approving more intense, mixed‐use land use districts in the Crossings Specific Plan, with future higher intensity residential and mixed use zoning identified in this Housing Element. Higher density and mixed‐use developments can demand less energy than lower density projects by encouraging walking, a decreased use of automobiles, and smaller housing units that are more efficient to operate.

Other Local Ordinances
The City does not currently maintain any other locally adopted ordinances, such as short‐term rental or inclusionary housing ordinances. The City intends to adopt an inclusionary housing ordinance concurrent with the adoption of the General Plan update. As part of Program 3a, the City will evaluate the impact of the inclusionary housing ordinance upon the cost and supply of residential development after two years of implementation. The City is considering the adoption of a short‐term rental ordinance that would either prohibit the use or allow them with a moderately restrictive level of regulations, such as limiting one license per owner (to avoid corporate‐based ownership models). Whether such an ordinance (or similar) is adopted, the City will evaluate the cumulative impact ofshort‐term rentals on the cost and supply of rental housing in Fountain Valley as part of Program 3a.

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Site Improvements
Residential developers are required to provide the improvements necessary to enable the use of developed sites and to pay a pro rata share of offsite improvements. Most All of the City'’s remaining vacant or underutilized land is of an infill character, and necessary infrastructure systems are already in place and in good condition. Considering that development and intensification efforts will be infill in character, the need for extensive site improvements is limited and should not be considered a constraint to market rate or affordable housing.

The developer of a residential project is required to provide the connections to public infrastructure to serve the project. This includes, but is not limited to, the provision of storm drains, water, and sewer connections. Utility lines, including but not limited to electric, communications, street lighting, and cable television, are required to be placed underground in any new, revised, or reactivated residential subdivision. The subdivider works directly with the utility companies for the installation of such facilities. Though most of the City is currently served by adequate roadways and sidewalks, improvements for access or internal navigation may be necessary. Vehicular access to roadways will be determined in accordance with driveway locations and design specifically approved by Public Works.

Offsite improvements are limited to the adjoining public rights‐of‐way (roadways) and consist of one or more of the following: curb, gutter, sidewalks, streetlights and street trees, and landscaping. Almost all of the City’s public rights‐of‐way are fully improved and few, if any, off‐ site improvements would be required for new development.

Local Processing and Permit Procedures
The City of Fountain Valley’s development review process is designed to accommodate development while ensuring safe and attractive development projects. There are three levels of decision‐making bodies in the City that govern the development review process: the Planning and Building Director, the Planning Commission, and the City Council. Generally, the evaluation and review processes may contribute to the cost of housing in that holding costs incurred by developers are ultimately passed along to future occupants as reflected in the unit’s rental or selling price. These review processesinvolve criticalsafety reviewsfor compliance with structural and fire codes. However, it is important to note that the City of Fountain Valley’s review process has not changed in years and yet the prices and rents of homes has increased dramatically, illustrating the dominate role that the market plays in setting home prices/rents.

The City's goal is to process all residential development applications in a timely manner to facilitate lower housing prices. The City approves residential development either by right (ministerial review), with a conditional use permit, or through a specific plan. The City also applies a level of design review for nearly all residential projects. The City’s local processing and permit procedures are described in more detail below. Because of the City’s reasonable and relatively quick processing times, particularly for affordable housing, the current procedures and

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requirements are considered to facilitate new residential development and do not impose any significant constraints.

Ministerial Review
Uses that are permitted ministerially are reviewed over a 10‐day period by the Planning and Building staff, subject only to the approval by the Planning and Building Director. The total time to process these permits is typically 30 to 60 days. Examples of uses that are approved in a ministerial process include individual single family houses in the Single‐Family Residential (R1) and Low Density Multiple Dwelling (R2) zoning districts, emergency shelters in the General Commercial (C2) zoning district, and ADUs, duplexes, and supportive and transitional housing in any residential district. These uses are subject only to the standards and requirements contained in the Development Code and are not subject to conditions or the review or approval of the Planning Commission or City Council.

The City also applies the ministerial review process for affordable housing projects, even if the use would otherwise require a conditional use permit. This streamlining option is available for projects that provide a proposed housing project with five units or more that meet the criteria of a qualifying density bonus project under state law. After a preliminary application is submitted by the applicant, the City shall provide a written comment letter to the applicant within 30 days of submittal, incorporating comments from various City departments.

The applicant must then submit a formal application containing a legal description of the proposed project, the identification of and proforma justifying requested concessions, a management plan for complying with the administration and management regarding income qualification and documentation, and a site plan. City staff then produces a staff report to inform the Planning Commission. However, this is only done to keep the Planning Commission informed and the Planning and Building Director is the final approval authority. The only exception is if the application involves a request for direct financial incentives, in which case the decision to provide direct financial incentives (not the use) is brought to the Planning Commission for their recommendation and then to the City Council for their decision.

Design Review
Some projects are subject to the Planning Commission’s review of the design and appearance of structures proposed. This review procedure does not pertain to the land use and does not provide the Planning Commission or a member of the public to approve or disapprove the proposed land use. The intent is to ensure that projects comply with all applicable development and design standards/guidelines (in the Development Code and/or a specific plan), and minimize potential adverse effects, in compliance with the actions, goals, objectives and policies of the General Plan. The design review process may be conducted and acted upon concurrently with an application for a conditional use permit, variance, or other matter requiring City approval, but shall be filed before issuance of a building permit. Appeals of the Planning Commission’s findings can be made to the City Council. The City conducts two levels of design review:

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 A Development Review application isrequired for nonresidential architectural modifications.

The City typically processes such applications in two to three months.  A Precise Plan of Design is required for any proposed structures except for those in the R1 zoning district. The City typically processes such applications in two to three months.

Conditional Use Permit
The City requires a conditional use permit (CUP) to allow for specified activities and uses as identified in the various zoning districts whose effect on the surrounding area cannot be determined before being proposed for a particular location. This includes multifamily uses in any residential district, single‐family uses in the Garden Homes (GH) zoning district, and emergency shelters in the Local Commercial (C1) zoning district.

The Planning Commission reviews the configuration, design, location, and potential impacts of the proposed use, to evaluate the compatibility of the proposed use with surrounding uses and the suitability of the use to the site, to ensure the protection of the public convenience, health, interest, safety, and welfare. Appeals of the Planning Commission’s findings can be made to the City Council. The City typically processes such applications in two to three months.

Specific Plan
The City allows for the preparation of a specific plan for a project area that is at least five acres to replace the base zoning district and provide unique development standards and guidelines.

The City has approved a number of specific plans to facilitate residential development, including the Crossings and Waner/Newhope specific plans. The intent of the specific plan process is to allow for a wider variety of residential and nonresidential uses than is permitted in any individual base zoning district, while ensuring a high quality of design and compatibility with the surrounding community. The approval of a specific plan is subject to review by the Planning Commission and approval by the City Council.

General Plan and Zoning Amendments
Projects requiring zone changes or General Plan amendments require the review of the Planning Commission and approval of the City Council. The timing depends upon the nature and scale of the amendment, with simpler amendments taking as little as three to six months and more complex amendments taking additional time. The application processing time is entirely dependent upon the required CEQA process under CEQA (California Environmental Quality Act (CEQA), with the full range consisting of an( exemption, addendum, negative declaration, mitigated negative declaration, or environmental impact report).

In all cases, the planner assigned to a project will assess the adequate level of environmental review per the requirements of the California Environmental Quality Act (CEQA). Only projects require discretionary review for the use (those requiring a CUP or processed under a specific plan) are subject to CEQA. Additionally, many infill projects and other small projects are exempt from CEQA per state law. For larger, more complex developments, a consultant may be retained

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to perform environmental studies. Upon completion of environmental documentation, the project is presented to the Planning Commission and Cit Council for certification.

Typical Procedures for Single Family and Multifamily Development As detailed in previous pages, the typical procedures and their impacts on housing cost, supply, timing, and approval certainty varying based on the zoning district and type of housing. Single family housing experiences the lowest impact from local processing and permit procedures as such housing is permitted by right in the R1 and R2 zoning districts, with permitting limited to conformance with required standards and approval by the Planning and Building Director.

Duplexes are also permitted by right in the GH, R2, R3, and R4 zoning districts and are processed in a similar manner as single‐family uses in the R1 and R2 zoning districts.

Multifamily uses in any residential district and single‐family uses in the GH zoning district require a CUP that entails at least one public hearing before the Planning Commission to issue approval.

The CUP process typically extends the permitting process by roughly two or three months to enable City staff to review and recommend conditions of approval (including coordination with the applicant) and for the public hearing to be conducted (more time may be necessary if an MND or EIR is needed for CEQA clearance).

As an example of typical conditions of approval, the CUP for the Villa Asteria project proposed 7 units in the GH zoning district includes 75 conditions of approval: 32 Planning Department, 3 Building Department, 7 Fire Department, and 33 Public Works Department conditions. Of the 75, most conditions are administrative conditions (e.g., requiring compliance with federal, state, and local laws; or not deeming resolution effective unless signed; compliance with specifically referenced provisions of the Municipal Code). These types of conditions are standard practice and require minimal cost and time for applicantsto consider and review. Some unique conditions of approval related to mitigation measures as outlined in the project’s Mitigated Negative Declaration, related primarily to construction activity and ways to minimize dust and noise, as well as a requirement to submit proof of a lack of soil contamination. Other unique conditions related to the site design, such as the requirement for a retaining wall to ensure proper grading and soil stabilization, and the requirement for frosted or opaque windows on the second stories of homes adjacent to surrounding single‐story homes and the inclusion of mature specimen trees to maintain privacy for both existing and proposed houses.

Similar conditions of approval and the associated timing, cost, and certainty implications would apply to multifamily uses that require a CUP. Discussions with this applicant and others indicate that the CUP process and these types of conditions of approval do not contribute significantly to the cost of developing housing or reduce the certainty of approval to a meaningful degree.

All residential projects outside out of the R1 zoning district are subject to the requirement of a precise plan of design, which entail City staff review of the overall site plan and building design, typically adding two or three months to the overall process to arrive at a consensus with the applicant prior to proceeding to Planning Commission at a public hearing (this timing runs

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concurrent with any uses that also require a CUP to develop conditions of approval). The City is evaluating the extent to which the precise plan of design process increases the cost and decreases the certainty of developing housing, and to eliminate unnecessary approvals and requirements, through the implementation of Program 3a.

Development Fees
A variety of fees and assessments are charged by the City and other agencies to cover the cost of processing development permits and providing local services. These fees are necessary to ensure quality development review and adequate public services. However, development fees and exactions are passed down to the homeowner and renter, and therefore affect housing affordability.

Development fees are set annually by the City Council based on the actual cost of services and are posted online for easy access. Fees that apply to residential development in Fountain Valley are relatively low in comparison to most areas in Southern California. Common Planning fees as shown in Table H‐20.

TABLE H‐20

PLANNING APPLICATION FEES IN FOUNTAIN VALLEY
Type of Application Fee
Zone Change   $7,110
Parcel Map   $1,440 plus $250 for each additional plan review beyond two Tentative Map $5,540 (tract map), $1,960 (parcel map)
Variance, Major $3,355 ($1,180 as an add‐on to a primary application) Variance , Minor $510 ($205 as an add‐on to a primary application) Development Code Amendment $4,745
Development Review $1,290
Precise Plan $4,715 (≥ 3,500 sf), $3,480 (<3,500 sf)
Conditional Use Permit   $3,465 ($1,005 as an add‐on to a primary application) General Plan Amendment $11,595
Specific Plan   $15,110 ($11,435 for an amendment)
CEQA (Negative Declaration or EIR) Cost of consultant plus 15% and county/state filing fees In addition to fees charged for discretionary permits, fees also are charged for the actual construction of the project. Examples of the fees include plan check fees (building and infrastructure plans) and building permit fees (inspections conducted by building inspectors). All of these fees are used to offset City expenses incurred by the construction of the project.

Other fees are imposed to mitigate potential impacts created by new development. These fees are typically referred to as development impact fees. These fees may include: traffic impact fees, school fees, drainage fees, and fire fees. These types of fees vary widely from city to city and within areas of a given city. Some of these fees or costs may be imposed directly by a city (such as park land dedication and fees) or collected by a city for another entity (such as the Orange County Sanitation District). Table H‐21 displays development fees for four types of residential

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projects in Fountain Valley: an accessory dwelling unit, a single‐family house, and a 50‐unit apartment project. Overall, the City’s fee structure is not considered a constraint to housing.

TABLE H‐21

RESIDENTIAL DEVELOPMENT FEES FOR SAMPLE PROJECTS IN FOUNTAIN VALLEY Fees1
Accessory
Dwelling Unit
(1,200 sq ft)
Single‐Family
Home2
Apartment
50‐Unit Project
City Fees
Planning Fees $250.41 $435.26 $133.43
Engineering Fees $7,951.82 $29,048.00 $3,947.18
Building Fees $4,643.77 $6,933.51 $1,711.40
Park In‐Lieu (Quimby)3 $0.00 $10,377.00 $8,282.00
Other Governmental Agencies
School Fees (FVSD)4 $4,896.00 $11,424.00 $5,780.00
Sewer Fees (OCSD)5 $2,505.60 $6,362.00 $4,218.19
TOTAL $20,247.60 $64,579.77 $1,203,610.00
Per Market Rate Unit $20,247.60 $64,579.77 $24,072.20

1. Projects may require site‐specific environmental assessments, not included in above totals.

2. Single‐family home assumed at 2,800 square feet with 400 square foot garage in the R1 zone.

3. Park fees subject to Municipal Code §21.78.070.

4. ADU’s smaller than 500 square feet are exempt from paying school fees. Fountain Valley is also served by other school districts.

5. Sewer fees are charged on a per‐square foot basis, per Ordinance OC SAN‐57.

Increased Transparency of Zoning and Fees
In 2019,state law changed to require increased transparency for residential development project applicants through the web‐based publication of current fee schedules, zoning ordinances, and other information. The City currently providesits Development Code online through Quality Code Publishing (with a direct link provided on the City’s website). The City’s website also hosts its fee schedule, with updates published as amendments are adopted by City Council, as well as application forms and other information related to planning and building activity.

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Non‐Governmental Constraints
Infrastructure Constraints
Since the City of Fountain Valley is relatively built out, the existing infrastructure is extensive and has adequate capacity to support anticipated population and new residential development growth. The City conducted technical studies in 2020 as part of a comprehensive update to the General Plan and confirmed the adequacy of infrastructure systems and water supply.

Water and Wastewater
The City’s existing potable watersystem consists ofstorage reservoirs, booster pumping stations, groundwater wells, distribution pipelines, valves, fire hydrants, a connection to Metropolitan Water District of Southern California (Metropolitan), and emergency inter‐connections with other cities. Water supplies are from local groundwater aquifers managed by Orange County Water District that is pumped from City owned wells and imported water from Metropolitan that is provided by the Municipal Water District of Orange County.

The City owns, operates, and maintains the majority of the sewer collection system within the City boundary. The City’s Engineering Department works closely with the Maintenance Division to ensure the sewer system is functioning effectively within the City boundary. Sewer flows from the City ultimately connect into Orange County Sanitation District (OCSD) sewer trunk lines that convey wastewater to OCSD Treatment Plant No. 1 (located within city boundaries).

The majority of the water and sewer system serving the City was built in the 1960’s and 1970’s and is reported to be in good to excellent condition. Agencies responsible for this infrastructure maintain master plans and identify necessary improvements to the water, wastewater, and recycled water systems. None of the improvements would preclude or inhibit future housing projects in Fountain Valley, and future updates to the master plans will incorporate the City’s future growth assumptions.

The City shares the Housing Element with OCSD and OCWD to facilitate their compliance with state law in granting priority for service allocations to proposed developments that include housing units affordable to lower‐income households.

Other Utilities
The Southern California Gas Company and Southern California Edison provide natural gas and electrical service to homes and businesses in Fountain Valley. No deficiency exists in the existing electric and natural gas systems in the city, and both companies state that they will be able to expand to accommodate any future growth in the City. All areas of the city have access to high‐ speed internet service provided by AT&T, Spectrum, and Frontier Communications (all 99% of the city), and Earthlink (77% of the city).

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Environmental Constraints
Fountain Valley has relatively few environmental constraints throughout the city. The 100‐year flood zone is limited to the northwestern part of the city and does pose any significant concern.

The area covered by the flood zone is entirely developed and current property owners are required to obtain flood insurance.

Many parts of southern California are susceptible to liquefaction, including a large part of Fountain Valley. Liquefaction is a process by which strong earth shaking causes soil that is saturated with groundwater to lose strength and behave like a fluid, and the ground appears to liquefy. Otherwise, there are no topographical constraints (essentially flat) or environmental hazards that would in any way limit the development potential of any of the underutilized sites.

Otherwise, there are no topographical constraints(essentially flat) or environmental hazardsthat would in any way limit the development potential of any of the underutilized sites. Additional information can be found in the analysis of environmental constraints in the Residential Land Resources section.

Price of Land
Typically, land costs increase as land availability decreases. With a very limited amount of available land the cost of land is a major constraint to housing production in Fountain Valley. In addition, the desirability of this community, with excellent schools, Mile Square Park, and other local amenities, drives prices up. There is no vacant land in Fountain Valley (per listings on LoopNet accessed in September 2021) and samples of property for sale indicate land is priced at $1.3 to $5.5 million per acre (1 commercial lot with vacant buildings in Fountain Valley, 2 industrial properties just across the channel in Santa Ana, and 1 residential property just west of Beach Boulevard in Huntington Beach).

The high cost of land increases home prices, which in turn creates more need for large financial subsidies in order to bring the total new housing costs within the economic reach of low‐income households. As in the past, the City will actively pursue policies and programs to make extremely low, very low‐, low‐, and moderate‐income housing possible. However, to achieve affordable housing goals, a combination of public and private financing will be needed to overcome the obstacle of high land prices.

Cost of Construction
Construction costs primarily consist of the cost of materials and labor. Both of these factors fluctuate depending on market demand and market‐based changes in the cost of materials.

Other influences on the cost of construction include the type of unit being built and quality of the product being produced. According to recent analysis of construction costs across California, the per‐square‐foot hard costsfor constructing multifamily housing climbed 25% over the course of a decade (even after adjusting for inflation).

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The rise in costs is associated in part with an increasing tightness in the market for skilled labor, with California general contractors indicating difficulty in finding workers such as plumbers, pipelayers, roofers, equipment operators, drywall installers, cement masons, concrete workers, carpenters, and welders. As the ability to find skilled labor becomes more difficult and takes longer, the additional time leads to further financing costs and uncertainty, leading to higher housing costs for the builder and future occupant.

A rise in the cost of materials is another contributor to the increased cost of construction. Wood, plastics, and composites doubled in price between 2014 and 2018. As an example, the price for wood usually ranged from $350 to $500 per thousand board feet, but costs surged to a peak of $1,515 per thousand board feet in May 2020. Various news articles cite that mill operators and lumber dealers forecasted demand based on a soft 2019 market and pulled back on production capacity for 2020. As of late August 2021, lumber prices dropped to $389 per thousand board feet (the lower end of the typical range) though costs may rise and fall in the future.

To help mitigate constraints posed by construction costs, the City allows manufactured housing in single or multifamily zones. The use of manufactured homes can reduce housing costs by eliminating material waste, avoiding weather delays and theft, reducing labor costs by consolidating and automating activities, and cutting down onsite construction time (which also saves money in land carrying costs). Cumulatively, these factors can result in 20% to 40% lower prices for the housing unit itself. However, the cost of new manufactured housing can be dependent on the distance from the factory, with farther distances increasing transportation costs that may offset some or all of the benefits of a manufactured house.

A number of companies around the world are pushing the envelope of what is possible, and there is a critical mass of thought,research, development, and money being invested into new methods of housing construction. 3D printing, for example, challenges both traditional structural forms as well as the building process. The first 3D‐printed zero net energy homes community will be completed in Rancho Mirage in 2022. The company behind the development, Mighty Buildings, claims that the process can cut time in half and reduce labor hours by 95% while producing 10 times less waste than conventional construction.

Financing
The affordability of owning a home is greatly influenced by mortgage interest rates. Increases in interest rates decrease the number of persons able to purchase a home. Conversely, decreasing interest rates result in more potential homebuyers introduced to the market. Mortgage interest ratesfor new home purchasesranged from 3% to 5% for a fixed‐rate, 30‐year loan between 2016 and 2020, with an average rate of approximately 3.11% in 2020.

Interest rates are determined by national policies and economic conditions, and there is little that local governments can do to affect these rates. First‐time homebuyers are the group impacted the most by financing requirements. Lower initial rates are available with graduated payment mortgages, adjustable‐rate mortgages, and buy‐down mortgages. However, variable

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interest rate mortgages on affordable homes may increase to the point of interest rates exceeding the cost of living adjustments.

Flexible loan programs,such asthose for first‐time homebuyers,still offer flexible down payment requirements between 5% and 20%. Such programs provide a method to bridge the gap between a required down payment and potential homeowner’s available funds. The Federal Housing Administration (FHA) offers loan programs for first time home buyers including low down payments, around 3.5%, low closing costs, and easy credit qualifying.

At this time, the greatest impediment to homeownership is creditworthiness. According to the FHA, lenders consider a person’s debt‐to‐income ratio, cash available for down payment, and credit history when determining a maximum loan amount. Many financial institutions are willing to significantly decrease down paymentrequirements and increase loan amountsto persons with good credit ratings. Persons with poor credit ratings will likely be forced to accept a higher interest rate or a loan amount insufficient to purchase a house. Poor credit rating can be especially damaging to lower income residents who have fewer financial resources with which to qualify for a loan. The FHA is generally more flexible than conventional lenders in its qualifying guidelines and allows many residents to reestablish a good credit history.

In the goal of producing more affordable housing, all jurisdictions, developers, and potential homeowners/tenants in southern California face the same constraints of elevated construction costs and the financing limitations of lower credit scores. While cities have little ability to directly address either constraint, the City will endeavor to support new construction options and coordinate on expanded financing tools as part of its housing programs.

Typical Timing for Building Activity
The City examined the typical timeframe between a project’s approval (entitlement) and the issuance of building permits to understand and illustrate the influence of factors and activities outside of the City’s permitting process that could delay building activity. Examples include conducting necessary studies, obtaining financing, completing site design, and other external project logistics. The typical timeframe for recent housing projects in Fountain Valley between approved entitlement and the issuance of building permits is roughly three to six months, with the exception of the influence of the COVID‐19 pandemic that stalled constructions activity during the 2019‐2021 timeframe.

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Residential Land Resources
Regional Housing Needs Assessment
California’s housing element law requires that each city and county develop local housing programs designed to meet its “fair share” of existing and future housing needs for all income groups. This effort is coordinated by the jurisdiction’s council of governments when preparing the state‐mandated housing element of its general plan. This “fair share” allocation concept is intended to ensure that each jurisdiction accepts responsibility for the housing needs of not only itsresident population, but for all households who might reasonably be expected to reside within the jurisdiction, particularly lower income households.

The “fair share” allocation process begins with the State Department of Finance’s projection of total statewide housing demand, which is then apportioned by the State Department of Housing and Community Development (HCD) among each of the state’s official regions. The City of Fountain Valley is in the six‐county Southern California region, which includes Orange, Los Angeles, Riverside, San Bernardino, Ventura, and Imperial counties. The agency responsible for assigning fairshare targetsto each jurisdiction in thisregion isthe Southern California Association of Governments (SCAG).

A local jurisdiction’s “fair share” of regional housing need is estimated in terms of four factors:
 The number of units needed to accommodate forecast household growth  The number of units needed to replace demolitions due to attrition in the housing stock (i.e., fire damage, obsolescence, redevelopment, and conversions to non‐housing uses)  Maintaining an ideal vacancy rate for a well‐functioning housing market  An adjustment to avoid an overconcentration of lower income households in any one jurisdiction
The new construction need is referred to as the regional housing needs assessment (RHNA) and is allocated as a total need and the need broken down into four household income categories used in federal and state housing programs: very low, low, moderate, and above moderate income, defined operationally as households earning up to 50%, 80%, 120%, and more than 120% of the Orange County median income.

The allocations are further adjusted to avoid an overconcentration of lower income households in any one jurisdiction. The fair share allocation also considers the existing deficit of housing resulting from lower income households that pay more than 30% of their incomes for housing costs. This is the threshold used by federal, state, and local governments to determine housing affordability.

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2021–2029 RHNA Allocation
HCD allocated a total of 1.34 million units to the SCAG region for the 2021‐2029 planning period, a figure that is 300% larger compared to the previous 2014‐2021 planning period. The figure was so much larger because of the addition of pent‐up demand into the methodology. Whereas the RHNA for past planning periods only considered housing demand based on the growth of new households, the methodology for the 2021‐2029 RHNA factored in the unmet housing need of existing households that has been building up over decades. Explicit measures of ‘existing housing need’—mainly overcrowding and cost burden—became part of the state’s formula for determining a region’s total housing needs.

The City of Fountain Valley’s “fairshare” of the region’s housing need for the 2021‐2029 planning period is 4,839 units: 1,307 very low, 786 low, 834 moderate, and 1,912 above moderate income units. The 2021–2029 RHNA allocates roughly 200 new units based on projected growth of new households and about 4,600 new units based on pent‐up demand from existing households and subregional redistribution based on proximity to jobs, proximity to public transit, and social equity adjustment. Additionally, SCAG adjusted its distribution methodology further to shift regional redistribution from jurisdictions in inland counties to jurisdictions in coastal counties.

Summary of Development Capacity
The City is committed to accommodating its RHNA allocation and presents a balanced approach of rezoning to dramatically expand capacity while strongly promoting ADUs through the programs in its Housing Strategy. The City is able to address its RHNA allocation with ample surplus capacity for the lower (16%) and moderate (26%) categories. Note that the RHNA allocation for very low and low income households is combined for the purposes of evaluating capacity.

The following sections describe the City’s capacity to accommodate its RHNA allocation housing projectsthat are underway, developable sitesthat are currently zoned for housing, and sitesthat could be rezoned for housing. Figure H‐1 and Table H‐22 display and summarize the City’s land inventory ofsitessuitable for housing either through projectsthat are already entitled or planned and the potential capacity of underutilized sites to accommodate new residential development.

Additional detail and discussion are provided in the pages that follow. A parcel‐by‐parcel listing is provided in Appendix A.

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Figure H‐1  Housing Sites Inventory

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U.# ‐ Underutilized sites
P.# ‐ Pipeline projects

ADU potential (symbolic location)
See Table H‐22 for a list of pipeline and underutilized sites and Appendix A for a parcel‐by‐parcel listing.

Note that Slater Avenue was approved in April 2022.

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TABLE H‐22

HOUSING SITES INVENTORY
Map
Ref Site Name GP1 Zone2 Acres
Density (du/ac) Housing Capacity by Income Category
Assumed Max VL/L M AM Total5
P1 Prado Family Homes HDR SP 1.95 25.7 30 49 0 1 50
P2  Villa Serena LMDR GH 4.07 7.4 10.8 0 0 12 12
P3  Moiola LMDR R1/GH  12.9 5.7 5/10.8 0 0 74 74
P4 Villa Asteria LMDR GH 1.02 10.8 10.8 0 0 7 7
P5 Guadalupe Manor MDR C1 0.73 25.7 46.5 297 0 0 297
P6 Slater Avenue MU1 MU1 3.34 81 65 33 78 159 270
Planned/Entitled Sites Subtotal 20.7  ‐‐  ‐‐  76111 078 94253 170442 U1 16650 Harbor VHDR R53 3.58 50 65 179 0 0 179
U2 Boomers MU2 MU23 6.88 8540 10055 8841 17383 324151 585275 6a
U3 FV Crossings SP SP4 48.37 22  ‐‐  550 110 440 1,100
U4 Golden Triangle VHDR R53 2.34 50 65 117 0 0 117
U5 Harbor Shpg. Center MU2 MU23 16.69 35 55 53 1054 1934 3516b U6 Los Cab Sports Vlg. SP SP4 14.74 45  ‐‐  10299 200 36474 663766c U7V7 Miller Property  HDR R43  18.64 22 30 6162 122 2278 4116d U8 Slater Investments MU1 MU13 3.34 65 65 33 64 121 2186e U9U
8 Smith Farms  LMDR GH  4.2  6 10.8 0 9 17 26
U10
U9 Southpark SP SP4 35.35 31  ‐‐  550570 110 440420 1,100 U11
U10 Warner Square MU1 MU13 1.84 10065 10065 2818 5436 10266 184120 6ef
Vacant and Underutilized Sites Subtotal 176.63  ‐‐  ‐‐  1,68976 1 946775 2,2401,
878
4,34294
7 ADUs ‐‐  ‐‐  ‐‐  590310 9959 3115 720384
Total Capacity 197.3 ‐‐  ‐‐  2,11042
7 1,04583
4 2,22436
5 5,16886
4 RHNA   ‐‐  ‐‐  ‐‐  2,093 834 1,912 4,839
Surplus Capacity ‐‐  ‐‐  ‐‐  334317 2110 453312 998329

1. GP or General Plan. LMDR = Low Medium Density Residential, HDR = High Density Residential, VHDR = Very High Density Residential, MU1 = Mixed Use 1, MU2 = Mixed Use 2, SP = Specific Plan

2. Zone or Zoning. R1 = Single Family Residential, GH = Garden Homes; C1 = Local Commercial; R4 = High Density Multiple Dwelling, R5 = Very High Density Residential, MU1 = Mixed Use 1, MU2 = Mixed Use 2, SP = Specific Plan

3. Rezoning required. These sites will be rezoned (see Program 1a) in 2022 concurrent with the broader General Plan update.

4. Rezoning required. These sites will be rezoned (see Program 1a) within the first three years of the planning period.

5. Assumed Density. Totals are based upon the Assumed density and not the Maximum density.

6. Additional density/capacity. Through Program 1c, the City will adopt an inclusionary housing ordinance in early 2023within the first year of the planning period. As a result, a number of sites will likely seek additional units through state density bonus provisions. While the totals shown in this table and assumed for the purposes of accommodating the RHNA exclude the application of a density bonus, the City is currently evaluating the implications of increasing total capacity as follows: a) 673, b) 404, c) 812, d) 471, e) 250211, f) 211. These capacity figures have also been vetted with the public and property owners.

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Planned/Entitled Residential Development
The City has recently approved a number of housing projects that will be built and occupied during the 2021‐2029 planning period. These projects can be counted toward the City’s RHNA allocation, as shown in Table H‐22. Three projects are market rate single family or garden homes that are likely to be affordable only to above moderate income households. Two other projects will offer affordable housing early in the planning period.

The City contributed substantial funds and partnered with Related California to develop a 50‐unit affordable housing project along Harbor Boulevard (a site identified in the previous Housing Element). A total of 41 units will be are now reserved for lower income households (30% to 60% of AMI), 8 units are designated for permanent supportive housing for veterans, and one unit is set aside for an onsite manager. Prado Family Homes will offers 23 one‐bedroom, 14 two‐ bedroom, and 13 three‐bedroom apartments. The site also boasts a number of indoor and outdoor recreational and social amenities as well as convenient access to public transportation and the Santa Ana River Trail. The units are currently under construction with occupancy expectedbecame fully occupied in 2022.

The property owner of Guadalupe Manor, an existing apartment complex reserved for lower income seniors, has expressed interest, and submitted a preliminary review form to add 2729 additional lower income units(1214 one‐bedroom and 15 studio units) on the existing site. While the site is zoned C1 (Local Commercial), senior housing is a permitted use. A formal application has been filed and is under review. All five planned or entitled housing projects can be viewed on Figure H‐1.

Vacant Land
Fountain Valley is largely built out and there are no parcels of vacant land suitable for medium or higher density residential; consistent with state law,sites with agricultural uses are not vacant.

Vacant and Underutilized Land
New housing opportunities will rely on the intensification and reuse of property that contains existing uses. When property contains existing uses that are either inactive (e.g., vacant commercial businesses), or may be replaced by more intense and more profitable development, such sites are considered underutilized land resources.

After a multi‐year effort that involved eight public meetings and over a dozen meetings with individual property owners, the identified 101 vacant or underutilized sites that are suitable for new residential development to address the City’s RHNA allocation. As summarized in Table H‐ 22, these underutilized sites could accommodate up to 2,427 1,717 lower income units, 8251,045 moderate income units, and 2,2862,365 above moderate income units. The assumptions are consistent with state default density thresholds that enable a jurisdiction to assume a

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developable site could potentially accommodate lower income housing if the zoning allows 30 units per acre or more.

Density Assumptions and Zoning Adequacy
Based on the extremely large RHNA allocation, lack of vacant sites, limited number of vacant or underutilized sites, and public input, the City will amend and create a number of new zoning designations that will facilitate the development of higher density housing. Through the implementation of Program 1a, the City will amend its Development Code to reflect the following.
 High Density Multiple Dwelling (R4). To be amended to establish a minimum density of 15 units per acre.
 Very High Density Multiple Dwelling (R5). New zone to allow for residential at a minimum density of 30 and a maximum density of 40 units per acre for projects with fewer than 50% of the units reserved for lower income households. For projects that reserve 50% or more of the units for lower income households, the maximum density is increased to 65 units per acre.
 Mixed Use 1 (MU1). For sites smaller than five acres, this new zone will allow development up to 65 units per acre at a maximum height of five stories. At least 10% of the ground floor space must be reserved for commercial or office uses. All developments must include a residential component at a minimum density of 30 units per acre.  Mixed Use 2 (MU2). For sites five acres or larger, this new zone will allow development up to 40 units per acre, averaged over the entire project site, at a maximum height of six stories.

At least 20% of the ground floor space must be reserved for commercial or office uses. For projects where at least 30% of the ground floor space is for commercial or office uses, the maximum density is increased to 55 units per acre, averaged over the entire project site. All developments must include a residential component at a minimum density of 30 units per acre.
 Fountain Valley Crossings Specific Plan. This specific plan currently permits 100% residential projects in the Workplace Neighborhood District and mixed use in Activity Core Overlay, which is where the City would expand residential capacity from 491 units to 1,100. These areas do not permit single family housing and regulates residential development based on a form‐based code that allows buildings up to four stories by right (up to six stories with a CUP) and requires zero to 10‐foot minimum setbacks. For a limited (500‐foot) frontage of Talbert Avenue, setbacks are increased slightly, and maximum height is reduced to 2 or 3 stories to better transition to the surrounding low density properties. The ability to build up to four stories by right is consistent with the density assumption of an average of 22 units per acre (44 units per acre on roughly half of the District). Individual projects could, however, exceed that density substantially, easily up to 60 or 8090 units per acre.