Fountain Valley City Council
October 23, 2025

City of Fountain Valley Cross Connection Control Management Plan (CCCMP)

City of Fountain Valley CCCMP – June 2025
Appendix G
Self-Report Letter
(Commercial/Industrial Assessments)

On your property do any of the following exist:

Dental and/or medical equipment using water Laundry facilities Pumps or motors connected to water or sewer piping Multiple tenant suites Chemicals in quantities greater than 5 gallons or 5 lbs. Graywater system(s) Water storage tanks, ponds, water treatment systems,
sewage treatment, sewage storage, and/or wells
Petroleum, chemical or radioactive materials processing or storage Type of Business
Veterinary Manufacturing
Pet grooming Food Processing
Medical/Dental Restaurant
Office/Warehouse Aerospace
Hotel/Motel Retail
Other (explain below):

Site Contact
Contact Name:

Business Name:

Phone No.

Email:

Signature
Print Name:

Title:

Date:

Degree of Hazard Meter protection appropriate for Degree of Hazard Internal Protection and Referral to OC Health High Yes Yes
Low No No
No Hazard
Cross-Connection Control Specialist Reviewer:

Cross-Connection Control Program Specialist Certification No. Expiration Date: ` Review Date:

To help prevent backflow incidents please answer the questions below.

FOR WATER PURVEYOR USE ONLY
Commercial/Industrial Onsite Use Questionnaire
If yes, what chemicals are present:

If yes, please describe:

I am uncertain of the hazards on site and request an inspection.

I certify that the above information is true and correct to the best of my knowledge.

On December 19, 2023, the State Water Resources Control Board adopted the Cross-Connection Policy Handbook which became effective on July 1, 2024. This new legislation requires each public water system to conduct initial and ongoing inspections of potentially high hazard facilities to determine the level of hazard within your facility. The City is asking that each customer of a commercial or industrial site complete the survey below and return the completed survey to Kevin Deason, Water Quality Technician, 17300 Mt. Herrmann St, Fountain Valley, CA 92708, (714) 593-4624, Email: [email protected]

City of Fountain Valley Cross Connection Control Management Plan (CCCMP)

City of Fountain Valley CCCMP – June 2025
Appendix H
Backflow Prevention Assembly Diagrams

City of Fountain Valley Cross Connection Control Management Plan (CCCMP)

City of Fountain Valley CCCMP – June 2025
Diagram 1
Double check detector backflow prevention assembly

City of Fountain Valley Cross Connection Control Management Plan (CCCMP)

City of Fountain Valley CCCMP – June 2025
Diagram 2
Double check detector backflow prevention assembly – type II

City of Fountain Valley Cross Connection Control Management Plan (CCCMP)

City of Fountain Valley CCCMP – June 2025
Diagram 3
Double check valve backflow prevention assembly

City of Fountain Valley Cross Connection Control Management Plan (CCCMP)

City of Fountain Valley CCCMP – June 2025
Diagram 4
Pressure vacuum breaker backsiphonage prevention assembly

City of Fountain Valley Cross Connection Control Management Plan (CCCMP)

City of Fountain Valley CCCMP – June 2025
Diagram 5
Reduced pressure principle backflow prevention assembly

City of Fountain Valley Cross Connection Control Management Plan (CCCMP)

City of Fountain Valley CCCMP – June 2025
Diagram 6
Reduced pressure principle detector backflow prevention assembly

City of Fountain Valley Cross Connection Control Management Plan (CCCMP)

City of Fountain Valley CCCMP – June 2025
Diagram 7
Reduced pressure principle detector backflow prevention assembly – Type II

City of Fountain Valley Cross Connection Control Management Plan (CCCMP)

City of Fountain Valley CCCMP – June 2025
Diagram 8
Spill-resistant pressure vacuum breaker backsiphonage prevention assembly

City of Fountain Valley Cross Connection Control Management Plan (CCCMP)

City of Fountain Valley CCCMP – June 2025
Swivel-Ell Design and Construction Criteria
The criteria below, in conjunction with the swivel-ell diagrams that follow (Diagrams A and B), are minimum acceptable design and construction-related requirements for utilizing a swivelell. For restrictions and allowances for utilizing a swivel-ell, see CCCPH section 3.2.2.

A. Prior to operation of a swivel-ell, the PWS will receive approval for the design and construction plans of that swivel-ell from the State Water Board.

B. The drinking water supply must not, under any circumstances, be directly connected to the recycled water supply, nor be designed such that the recycled water use site could be supplied concurrently by a recycled water supply and a drinking water supply.

C. The drinking water supply line and the recycled water supply line must be offset (see Diagram 9b) in a manner that ensures a tee-connection, spool, or other prefabricated mechanical appurtenance(s) could not be readily utilized in lieu of the swivel-ell connection, nor result in the recycled water use site being supplied concurrently by recycled water and drinking water.

D. The recycled water supply line used in conjunction with the swivel-ell must be the only recycled water supply to the recycled water use area.

E. The swivel-ell must be located as close as practical to the public water system service connection, with the swivel-ell connection being located as close as practical to the RP upstream of the swivel-ell.

F. The swivel-ell must:

1. be located above ground;

2. be color-coded pursuant to section 116815 of the CHSC and its implementing regulations;

3. include appropriate signage, as required by regulation and the State Water Board;

4. be provided the security necessary to prevent interconnections, vandalism, unauthorized entry, etc.; and

5. be provided with meters on both the recycled water service and drinking water service connections.

City of Fountain Valley Cross Connection Control Management Plan (CCCMP)

City of Fountain Valley CCCMP – June 2025
Legend for Diagram 9a and 9b (also see next page)
RP = Reduced pressure principle backflow prevention assembly RW = Tertiary-treated recycled water originating from wastewatertreatment facility DW = Drinking water originating from a public water system W = Water (tertiary recycled water or drinking water) to use site. As pictured, configured for supplemental drinking water to the use site.

M = Meter (next page)
PE = Plain End (next page)
GRV = Groove (next page)
PWS= Public Water System (next page)
Diagram A: Example Swivel-Ell Pictorial (also see Plan View Schematics) Note: The RP, a required component of an acceptable swivel-ell, is not shown in the picture.

City of Fountain Valley Cross Connection Control Management Plan (CCCMP)

City of Fountain Valley CCCMP – June 2025
Diagram B
Swivel-Ell Typical Plan View Schematics
(not intended to be an exact portrayal of the pictorial)

City of Fountain Valley Cross Connection Control Management Plan (CCCMP) City of Fountain Valley CCCMP – June 2025
Appendix I
Cross-Connection Incident Response Form

City of Fountain Valley Cross Connection Control Management Plan (CCCMP) City of Fountain Valley CCCMP – June 2025

City of Fountain Valley Cross Connection Control Management Plan (CCCMP) City of Fountain Valley CCCMP – June 2025
Appendix J
Standard Specifications
and/or Standard Drawings

City of Fountain Valley Cross Connection Control Management Plan (CCCMP) City of Fountain Valley CCCMP – June 2025
Standard Specifications and/or Standard
Drawings can be reviewed at:
https://www.fountainvalley.gov/DocumentCenter/View/2538/20 15---PW-Standards-700---Website?bidId

CITY OF FOUNTAIN VALLEY

CITY COUNCIL

COUNCIL ACTION REQUEST
To: Honorable Mayor and Agenda Date: October 23, 2025
Members of the City Council
SUBJECT: Authorize Staff to Issue a Purchase Order to Wood Rodgers, Inc. for Design and Construction Management services for the Well No. 6 Rehabilitation Project for an Amount not-to-exceed $105,300.

Three-Year Strategic Goals
☒ Enhance the culture and environment of “A Nice Place to Live” ☐ Achieve fiscal stability by evaluating processes, and attract and retain revenue producing businesses/opportunities
☐ Attract and retain quality staff through best practices and trends ☒ Maintain, build, and modernize infrastructure to support growth and future needs of the City
☐ Not applicable

EXECUTIVE SUMMARY
Staff is recommending that City Council authorize the issuance of a purchase order (PO) to Wood Rodgers, Inc. for an amount not-to-exceed $105,300 for design and construction management services for the Well No. 6 Rehabilitation Project. Wood Rodgers is on the City’s pre-qualified list for On-Call Hydrogeological Services and has an active contract with the City.

Well No. 6 is located at 11775 Warner Avenue and is responsible for approximately 15 percent of the groundwater that supplies the City’s water distribution system. Well No. 6 was last rehabilitated in 2008 and is due for rehabilitation.

The adopted FY 2025/26 Budget includes sufficient funding for this project and is funded by the Water Enterprise Fund.

DISCUSSION
Well No. 6 is located on the northwest corner of Warner Avenue and Wintersburg Avenue on the east side of the city. The well was drilled in 1974 to a total depth of 1,120 feet below ground surface. Well No. 6 has historically pumped 4,000 gallons per minute (gpm) and is responsible for approximately 15 percent of the City’s water distribution system. The well was last rehabilitated in 2008.

Well No. 6 Rehabilitation
October 23, 2025

The City began the next well rehabilitation project at Well No. 6 in 2018. However, the contractor encountered an obstruction that prevented removal of the pump at the beginning of the project. Removal of the pump is required to begin well rehabilitation work, and as such, the project was put on hold. Since Well No. 6 was still fully operable, the City focused well rehabilitation efforts on Wells No. 10 and 11, as both wells had more urgent needs. The City has now completed rehabilitation of Wells No. 10 and 11 and is returning to complete rehabilitation of Well No. 6.

The Well No. 6 Rehabilitation Project will first identify the obstruction preventing pump removal.

Once identified, the project will complete standard well rehabilitation and maintenance items, such as chemical and mechanical cleaning of the well, pump removal and replacement, and motor refurbishment. Additionally, the project will remove and replace the existing roof structure and roof hatch. Once the well rehabilitation and maintenance activities are completed, staff will be able to optimize well efficiency.

Staff solicited proposals for design and construction management services for the Well No. 6 Rehabilitation Project from the City’s two pre-qualified On-Call Hydrogeological Services Consultants that have active contracts with the City: Kyle Groundwater and Wood Rodgers.

Both proposals demonstrated a strong understanding of the project scope. After comprehensive review of both proposals, staff determined that Wood Rodgers is the best suited consultant for this project based on their detailed understanding and comprehensive approach. Staff will continue to solicit and evaluate proposals from both on-call consultants in the future on a project-by-project basis.

Staff recommends that the City Council authorize the issuance of a PO to Wood Rodgers for design and construction management services for the Well No. 6 Rehabilitation Project.

FISCAL REVIEW
The adopted FY 2025/26 Budget includes sufficient funding for the Well No. 6 Rehabilitation Project. The project budget is funded by the Water Enterprise Fund.

FY 25/26 BUDGET for Project No. 25010 – Well No. 6 Rehabilitation Approved Project Budget $700,000.00
Design and Construction Management Services (Wood Rodgers) ($105,300.00) Remaining FY 25/26 Project Budget $594,700.00
Wood Rodgers, Inc. CON 1522
Original Contract Amount $600,000.00
Design and Construction Management Services for Project No. 25010 ($105,300.00) Total Remaining Contract Amount $494,700.00

PUBLIC NOTIFICATION
Not applicable.

Well No. 6 Rehabilitation
October 23, 2025

ENVIRONMENTAL IMPACT REVIEW
Not applicable.

ATTORNEY REVIEW
This does not require the Attorney for the City review or approval. This action will be issued on a City approved purchase order that provides standard terms and conditions which have been approved by the Attorneys for the City.

ALTERNATIVES
Alternative No. 1 Authorize staff to issue a purchase order to Wood Rodgers, Inc. for the design and construction management services for the Well No. 6 Rehabilitation Project for an amount not-to-exceed $105,300.

Alternative No. 2 Do not authorize staff to issue a purchase order to Wood Rodgers, Inc. for the design and construction management services for the Well No. 6 Rehabilitation Project for an amount not-to-exceed $105,300. This is not the recommended alternative as Well No. 6 is due for rehabilitation.

RECCOMENDATION
Staff is requesting City Council approval of Alternative No. 1 to authorize staff to issue a purchase order to Wood Rodgers, Inc. for the design and construction management services for the Well No. 6 Rehabilitation Project for an amount not-to-exceed $105,300.

Prepared by: Kyle Knoke, P.E., Senior Civil Engineer
Reviewed by: Mark Sprague, Field Services Manager/Chief Water Operator Reviewed by: Temo Galvez, P.E., Deputy Public Works Director / City Engineer Approved by: Scott Smith, P.E., Director of Public Works Fiscal Review by: Ryan Smith, Finance Director / City Treasurer Approved by: Maggie Le, City Manager
Attachments:

1. Wood Rodgers, Inc. CON 1522

2. Wood Rodgers, Inc. Proposal

Attachment #1

Orange Office: 606 E. Chapman Avenue, Suite 200 •Orange, CA 92866 • 657.226.1400 • Fax 916.341.7767 Offices located in California and Nevada
www.woodrodgers.com
July 25, 2025
Mr. Kyle Knoke, PE
Senior Civil Engineer
City of Fountain Valley
10200 Slater Avenue
Fountain Valley, California 92708
Subject: City of Fountain Valley – Hydrogeology On Call– Well No. 6 Rehabilitation Dear Mr. Kyle Knoke
Wood Rodgers, Inc. (Wood Rodgers) is currently contracted under the City of Fountain Valley’s (City) Hydrogeology On Call contract. The City has requested that Wood Rodgers provide a proposal for hydrogeological, well rehabilitation consulting services, and engineering services including design, construction management, and inspection services for the Well No. 6 Rehabilitation Project (Project).

Background
Well No. 6 is located on the northwest corner of Warner Avenue and Wintersburg Avenue in the City of Fountain Valley. The California Department of Water Resources (DWR) Well Completion Report (WCR) indicates the Well No. 6 was drilled in 1974 with reverse rotary drilling method to a total completed depth of 1,120 feet below ground surface (bgs) with 18-inch by 5/16-inch wall thickness and 14-inch by 5/16-inch wall thickness well casings, where the casing reduces from 18- inch to 14-inch diameter at 296 feet. The well is constructed with Ful-Flo louvered well screen with intervals from 370 to 390 feet, 450 to 490 feet, 565 to 724 feet, 860 to 910 feet, 960 to 1,020 feet, and 1,060 to 1,110 feet. Well No. 6 has historically pumped 4,000 gallons per minute (gpm).

The City has provided documentation which indicates that the pump was replaced in 2002 with a Flowserve 18MQH 3-stage bowl assembly with a bowl diameter of 16 7/8-inch and was set at approximately 240 feet. The City reported that the well was last rehabilitated in 2008. In 2018, a pump contractor attempted to pull the pump; however, the pump would only raise three feet while using a 40-ton crane. The pump is currently stuck and the City is unable to effectively utilize Well No. 6.

Scope of Work
Multiple scenarios may explain the why the pump is stuck, including the bowl assembly is too large for the well structure (likely scenario); a “dog-leg” or deviation in the casing is preventing the pump removal, subsidence may have resulted in a section of well casing to compress, or well failure. It is possible that any attempts to remove the pump from Well No. 6 may result in damage to the well casing. Any inflicted damage will result in additional work to return the well to service or render the well unusable. Prior to any further attempts to remove the pumping equipment, Attachment #2

Mr. Kyle Knoke
July 25, 2025

lowering a small diameter camera down an access point or into the well structure may provide additional information.

Wood Rodgers has encountered a similar situation and supported the Coachella Valley Water District with a stuck pump. In that scenario, it was determined that land subsidence was occurring within the area and the well casing near the pump compressed resulting in a stuck pump. The pump contractor attempted to remove the pump column by using hydraulic jacks that applied upwards of 300,000 pounds of force. This resulted in the pump assembly becoming dislodged and the pump contractor was able to remove the column pipe; however, the bowl assembly sheared off and fell within the screened interval of the well. The pump contractor was unable to remove the bowl assembly and elected to further knock the assembly down into the well sump and covered it with bentonite, effectively abandoning it within the well sump. Due to risk of shearing the pump assembly, Wood Rodgers recommends performing the hydraulic jacks as a last resort.

Scope of Work
Task 1 – Evaluation of Stuck Pump $22,300
Wood Rodgers will submit a Request for Information (RFI) to include documentation of well and pump efficiency tests, sand production data or observations, historical groundwater level and water quality data, production volumes, normal operating pumping rates, and specific capacity. Wood Rodgers will also request any documentation from the rehabilitation event in 2008, including downhole video surveys and deviation surveys performed on the well. This documentation serves as record of the last time the well was observed and may provide sufficient information to assess the structural integrity and/or potential damage that may have resulted from rehabilitation activities.

It is most likely that the pump bowl diameter is too large for the effective internal diameter of the well casing. Considering the wall thickness and diameter, the well’s internal diameter (ID) is likely

17.25-inches any deviation of the well may result in an effective diameter at a specific depth becoming less than the anticipated ID. Wood Rodgers recommends having the City subcontract a geophysical logging company to install a small diameter camera to view the pump bowl assembly.

It may be unsuccessful, but any visual observation of the pump bowl assembly will be beneficial in assessing the current condition of the well casing and pump assembly. Wood Rodgers will review the video survey and provide the City with our recommendations on a path forward.

It has been reported that wells within the City of Fountain Valley area are known for producing fine sand. A second likely scenario is that this pump may have become wedged due to sand production. Wood Rodgers recommends that the pump contractor pull and rotate the head while jetting water near the bowl assembly. If unsuccessful, Wood Rodgers will meet with the City and the pump contractor to discuss hydraulic jacks to be utilized. It should be noted that hydraulic jacks will likely result in damage to the well casing and/or pump assembly. Following the pump removal, it is recommended to include another downhole video survey to assess the well structure and potential damage. Wood Rodgers typically recommends an electromagnetic defectoscope

Mr. Kyle Knoke
July 25, 2025

(EMT-24) survey in rehabilitation programs, which will help determine the level of aggressiveness of the well rehabilitation.

It is our understanding that the City has a pump contractor on call list, which will be utilized to attempt to remove the pump assembly. However, one of the challenges to the site is that a there is not enough space for a pump rig to be parked near the wellhead, which requires the pump contractor to utilize a crane.

Based on the review of data obtained, results of the downhole video survey, and the pump removal results; Wood Rodgers will prepare a well profile for Well No. 6, which will include the well structure, well construction data, lithologic data, geophysical data, and current operating conditions. Our evaluation of the current condition of the well structure will be discussed with the City including Wood Rodgers’ recommendations for well rehabilitation, as warranted, including the inherent risks and opinion of the probability of success. Following our discussion with the City, the well rehabilitation plan will be outlined and described in the technical specifications (Task 2).

Deliverables: Request for Information (PDF)
Downhole Video Survey (PDF)
Well Profile (PDF)
Task 2 – Preparation of Technical Specifications $35,500 Wood Rodgers will update the City’s standard well rehabilitation specifications to include the recommended approach for Well No. 6 based on the information obtained from Task 1. This will include specific rehabilitation methods regarding chemical and mechanical cleaning, well development, biocide and acid treatment (proactive measure), and, if needed, casing modifications such as the installation of a casing patch or well liner. Following all well rehabilitation activities, a temporary test pump will be installed to optimize the yield and efficiency of Well No. 6, evaluate the success of the program, confirm that Project objectives are met (i.e., acceptable sand production, turbidity concentrations, and bacteriological results) and obtain the data necessary to finalize the pump design. The technical specifications and construction drawings will also be prepared to depict the proposed mechanical and structural modifications. Per the City’s request, the following modifications are required:
• Remove and replace roof and roof hatch
• Remove and replace the pump assembly including the pump head, pump bowls, shafts, column pipe, etc.
• Refurbish the existing motor (bake & dip)
It is assumed that the pump assembly will match the design requirements (flow and head) of the existing pump and the following detail sheets will be added to the drawings:
• Demolition Plan
• Roof Plan
• Mechanical and Structural Detail Plan

Mr. Kyle Knoke
July 25, 2025

Plan sheets will be prepared in AutoCAD, utilizing the City’s standards. It is assumed that the City will provide a plan sheet border in AutoCAD format. Plans will be submitted as 90% Draft for review and comment. Wood Rodgers will address and incorporate the City’s comments into a 100% Final submittal. Plans will be submitted in PDF and CAD format.

It is our understanding that the City will utilize their pump contractors on call list and there will not be a formal pre-bid meeting. Wood Rodgers has not included any bidding support within our proposal; however, can provide those services upon request.

Deliverables: Well Rehabilitation Specifications and Plans (PDF) Task 3 – Construction Management and Observation Services $40,000 Wood Rodgers will be available during the Project to provide on-site support during critical phases of the well rehabilitation and will coordinate with the City during all phases of the Project. Wood Rodgers will review and interpret data collected by the City during well rehabilitation, and we will provide recommendations where appropriate to optimize the work performed by the contractor.

This task will also include contractor submittal review. At minimum, Wood Rodgers anticipates providing remote assistance with varying level of inspection during the following phases:
mechanical cleaning, post-mechanical cleaning camera survey, chemical cleaning, post-chemical cleaning camera survey, pumping redevelopment, well testing, well disinfection, and well equipping. Wood Rodgers will also provide technical support, if needed, for the installation and inspection of any casing patches or other means of well modification.

Deliverables: Daily Report Forms and Submittal Responses (PDF) Task 4 –Well Testing Results Letter $7,500
The data collected from the aquifer pumping tests, including the spinner survey and Title 22 groundwater quality results, will be analyzed immediately following completion.

Recommendations that will be concluded from this data, include the final sustainable pumping rate and an appropriate permanent pump installation depth to best match the wells’ specific capacity.

The letter will provide recommendations for the future operation of Well No. 6 to manage static groundwater level, pumping water level, flow rate, specific capacities objectives, and sand production and will include recommended discharge rates and a pump setting depth.

Deliverables: Well Testing Results Letter (PDF)
Exclusions and Assumptions
Wood Rodgers assumed and was directed by the City to not include specific services.

However, the following additional services, can be provided by Wood Rodgers upon request:
• Geophysical Surveys
• Well Assessment TM
• Opinion of Probable Cost
• Bid Support Services
• Permit Support Services
• Laboratory Water Quality Analysis

Mr. Kyle Knoke
July 25, 2025

• Well Rehabilitation Summary Report

PROJECT COST
The total estimated cost to provide the hydrogeologic and engineering services described herein is $105,300, including direct expenses. All work is proposed to be performed on a Time-andMaterials (T&M) basis in accordance with our existing On-Call Contract with the City of Fountain Valley. This cost will not exceed the total proposed amount without prior written authorization.

We look forward to working with the City during the evaluation and rehabilitation of Well No. 6.

If you have any questions or require additional information, please feel free to contact Mr. Joshua Sobolew at (909) 670-7629.

Sincerely,
Joshua Sobolew, PG, CHG
Senior Hydrogeologist
Kevin Gustorf, PE
Principal Engineer
\\woodrodgers.loc\ReferenceData\Departments\WaterResources\3_Groundwater\Docs\Proposals\2025\Fountain_Valley_City_of\City_of_Fountai n_Valley_Well_No_6_Rehabilitation_Proposal_Final.docx

CITY OF FOUNTAIN VALLEY

CITY COUNCIL

COUNCIL ACTION REQUEST
To: Honorable Mayor and Agenda Date: October 23, 2025
Members of the City Council
SUBJECT: A Resolution of the City Council of the City of Fountain Valley, California, Approving the Density Bonus and Affordable Housing Agreement for the Euclid & Heil Residential Project
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 California Density Bonus Law, Government Code Section 65915, et seq. and Fountain Valley Municipal Code (FVMC), Chapter 21.08.050(a), (together, “DBL”) provide that owners of residential development projects must include specified levels of covenanted affordable housing in order to apply for and receive certain density bonuses and incentives to facilitate the economic feasibility of those projects. Further, Ordinance No. 1604 adopted on December 19, 2023 by the City Council approved, among other provisions, amendment of the FVMC to add Chapter 21.17, et seq., referred to as the City’s “Inclusionary Housing Program”, which requires that 15 percent of all new residential development projects must be covenanted for Low Income (or below) and available at an affordable housing cost, as appliable, for rental or ownership units. The 15% total may be achieved by onsite development of the required number of affordable units, or using a combination of onsite units and payment of In-Lieu Fees. Both the DBL and Inclusionary Housing Program require that the required Affordable Units be subject to recorded affordability restrictions, conditions, and covenants as set forth in an agreement between the City and the owner/developer.

Euclid & Heil FV Owner, LLC (“Developer”) is the owner of certain real property located at 16300 Euclid Street (APN # 144-111-01) at the northeast corner of Euclid Street and Heil Avenue (“Site”). Developer submitted an application for a land use entitlement to construct a residential community to consist of multiple market-rate and affordable components, including (i) 304 for-rent market rate apartments, (ii) 83 for-rent Senior affordable apartments (82 affordable units plus one Manager Unit), (iii) 183 for-sale townhomes, and (iv) 36 for-sale triplexes totaling 606 units on the 18.09-acre Site located at 16300 Euclid Street (“Project”). The 606 residential units include 542 base units and 64 density bonus units for a density bonus of 11.7 percent. The Project shall reserve 15 percent of the base units, i.e., 82 units on-site, as affordable rental housing for Low Income Households. Tenants of the “Affordable Units” must qualify as “Low Income” households

Euclid & Heil Residential Project Density Bonus and Affordable Housing Agreement October 23, 2025

earning less than 80 percent of Orange County area median income (“AMI”) and will pay a monthly “Affordable Rent”. The developer requested that development and operation of the 83-unit affordable housing component be constructed, owned, and operated by a separate entity, National Community Renaissance of California, a California nonprofit public benefit corporation (Affordable Developer), on a duly subdivided separate parcel (Affordable Parcel).

Developer (as Master Developer) and Affordable Developer reached consensus on a “Term Sheet” for the “Euclid+Heil Senior Affordable Apartment Homes” dated as of August 15, 2025 and executed on August 27, 2025 that sets forth the basic terms and conditions by which the Affordable Developer will develop “Senior Apartments” on the Affordable Parcel, which is the affordable housing component of the overall Project, subject to a certain Step-in Clause described therein. The Affordable Developer is not a party to the DBAHA; nor is the City a party to the Term Sheet or other contemplated implementing documents. Therefore, the requirement under the Entitlement and the DBAHA that Developer cause development of the 83 Affordable Units onsite is and shall remain Developer’s contractual obligation until issuance of a final Certificate of Occupancy by the City’s Building Official for the construction and completion of the 82 Affordable Units plus one (1) Manager Unit.

The developer is required to post a Surety Bond for In-Lieu Fees to secure its obligation to either develop the inclusionary units or exercise the In-Lieu Fee Option as allowed under the City Inclusionary Housing Program. If the Senior Apartments development proceeds, Affordable Developer intends to finance the project in part with (i) federal or state low-income housing tax credits awarded by the California Tax Credit Allocation Committee (TCAC), or (ii) tax-exempt private activity bonds or general obligation bonds, which will allow for higher income limits and monthly rent for the Senior Apartments, in comparison to Affordable Units not financed by (i) or (ii). (See tables later in this report.) Notwithstanding the In-Lieu Fee Option, under the DBAHA that Developer acknowledges and agrees that the Affordable Units required by the DBL cannot be satisfied by exercise of and payment under the In-Lieu Fee Option and the DBL Affordable Units, inclusive of the development of the Senior Apartments on the Affordable Parcel, must be constructed, completed, and operated for occupancy by qualified Low Income Households available at an Affordable Rent for the 55-year Affordability Period. In the event the Affordable Developer does not undertake development and operation of the Affordable Units, then the DBAHA and the City Covenants of record must be amended to conform to the facts of how many units of the Project are Affordable Units required by the DBL and how the City’s Inclusionary Housing Program will be satisfied by Developer either via payment of In-Lieu Fees or inclusion of Low Income Affordable Units onsite.

The DBL mandates that the City “shall ensure the continued affordability of all … low-income rental units that qualified the applicant [Developer] for the award of the density bonus for 55 years or a longer period of time…” Therefore, under the DBAHA, the City has several provisions to “ensure” successful construction, completion, and operation of the Affordable Units within the Site, which include:
 Surety Bond for In-Lieu Fees (to ensure that 15% inclusionary obligation is satisfied by either payment of In-Lieu Fees or completion of the 82 Affordable Units, to ensure compliance with the City’s Inclusionary Housing Program. The Surety Bond shall

Euclid & Heil Residential Project Density Bonus and Affordable Housing Agreement October 23, 2025

name the City as obligee, i.e., the party protected by and is beneficiary of the bond, which bond shall be delivered to City prior to and as a condition to the City’s issuance of the first CoO for the first housing unit in the Project.  Completion Guaranty executed by either the “parent” entity of Developer or a qualified Affiliate with financial wherewithal to cause construction of and pay for completion of the Affordable Units, or avail Developer’s alternative to cause of 82 units within the multifamily Apartments Component of the Project to be covenanted as Low Income Affordable Units. Staff and counsel have requested and will be reviewing with an economic/housing consultant the financial qualifications of the “Guarantor”. The form of a Completion Guaranty is Attachment No. 10 to the DBAHA. In the event of Default by Developer to cause completion of the 82 covenanted Affordable Units within the time frames set forth in the DBAHA, the City can avail all rights and remedies under the Completion Guaranty to ensure compliance with the DBL Affordable Units.  The DBAHA includes a series of covenants both for compliance with the affordable housing covenants as to income and rent, but specific requirements for property management, maintenance, and insurance. The City Covenants and Memorandum of Agreement will be recorded as senior, nonsubordinate encumbrances against the Site. Once the 82 Affordable Units are completed, these recorded instruments can be partially released and remain on record against the Affordable Units for the 55-year Affordability Period, again to ensure long-term compliance with the DBL as to the Affordable Units.

At its regularly scheduled meeting on June 25, 2025, the Planning Commission adopted Resolution No. 25-11 approving Precise Plan No. 579 by a vote of 4-0 for the development of the 606-unit Project. Developer is obligated to comply with the series of Conditions of Approval in Resolution 25-11, including that the City and Developer enter into that certain Density Bonus and Affordable Housing Agreement (16300 Euclid Street, Fountain Valley) (“DBAHA”) to implement the terms and conditions for development, operation, maintenance, and management of the Affordable Units for the 55-year Affordability Period. The DBAHA is included with the City Council Resolution, Attachment No. 2 to this agenda report, and presented for City Council review and action. Capitalized terms used herein are set forth in the DBAHA.

DISCUSSION
As noted, Planning Commission Resolution No. 25-11 approved Precise Plan No. 579 for development of the 606-unit Project. The Site is one of eleven (11) opportunity sites that were identified through the General Plan Update process of the Housing Element approved by State Housing and Community Development Department (State HCD) for residential development to help reach the City’s Regional Housing Needs Allocation (RHNA) of 4,839 housing units.

Pursuant to the DBL and Inclusionary Housing Program, the Project must include certain number of Affordable Units, and the DBL allowed the Developer to receive certain concessions, waivers, and reductions to the zoning and/or development standards, including relief from City parking requirements. The underlying zoning of the Site allows for a maximum of 30 dwelling units per acre (“DUA”); however, the Project will be built to 33.5 DUA based on Developer’s application for a density bonus pursuant to the DBL. The Project’s reservation

Euclid & Heil Residential Project Density Bonus and Affordable Housing Agreement October 23, 2025

of 15 percent of its base units as affordable to Low Income Households equates to the covenanted 82 onsite Affordable Units. While the DBL allowed for up to a 27.5 percent density bonus, i.e., a 149-unit density bonus, the Developer elected and applied to the City to construct only 64 density bonus units for a density bonus of 11.7 percent. Nonetheless, the City’s Inclusionary Housing Program also requires the 82 Affordable Units plus one (1) Manager Unit.

The DBL also allows one concession and unlimited waivers and reductions of the City’s development standards that apply to the Project by which a certain number of the “base” units are restricted for Low Income Households. Precise Plan No. 579 approved the Project with one concession for a reduction in the private open space requirement and eight waivers/reductions to the zoning standards for the Project including:
 Concession #1 – A reduction in the private open space requirement.  Waiver #1 – An increase in the maximum building height for the market rate and senior affordable apartments.
 Waiver #2 – An increase in the building site coverage.  Waiver #3 – An increase in the maximum number of units per square foot on each lot.  Waiver #4 – A waiver from the requirement that affordable units must be developed within the same housing type to allow the senior affordable units to be developed in a standalone building.
 Reduction #1 – A decrease in setbacks for the senior affordable and market-rate apartments.
 Reduction #2 – A reduction in minimum unit size for one-bedrooms units.  Reduction #3 – A reduction from the requirement that the affordable units have an average square footage of at least 85% of market rate units within the same housing type with the same bedroom count.
 Reduction #4 – A reduction requiring the same bedroom count ratio as the market rate units.

The Project Entitlement was approved and found to be consistent with the General Plan and Zoning, and compliant with applicable development standards of the R4 – High Density Multiple Dwelling Code with the inclusion of the density bonus, concession, waivers and/or reductions.

Condition of Approval No. 24 in Resolution No. 25-11 requires the City and Developer to enter into the DBAHA prior to issuance of the “Initial City Permit” (likely first grading permits) for the Project. The Precise Plan also includes additional conditions addressing affordability, number of affordable units, monitoring, the recording of covenants against the Site and Project, the 55-year Affordability Period, and the approved density bonus. (See: Conditions of Approval Nos. 23-31 of Attachment No.1; and these requirements are set forth and implemented in the DBAHA.) Other components of the land use entitlement for the Project approved by the City Council on June 25, 2025 include Conditional Use Permit No. 1930, Tentative Parcel Map No. 2024-103, and the approval of an Addendum to the certified Fountain Valley Final Program Environmental Impact Report (State Clearinghouse #2022100563).

Euclid & Heil Residential Project Density Bonus and Affordable Housing Agreement October 23, 2025

The attached City Council Resolution (Attachment No. 2) and DBAHA (Attachment No. 3) memorialize the Project approvals, as well as the 55-year Affordability Period for the 82 Affordable Units. The unit mix of the 82 Affordable Units, if the Senior Apartments are completed will include seventy-one (71) one-bedroom units and twelve (12) two-bedroom units covenanted for occupancy by Low Income Households at an Affordable Rent as defined and set forth in the DBAHA. One of the 12 two-bedroom units will be the designated Manager Unit that is unrestricted as to rent. If the Affordable Developer does not undertake completion of the Affordable Units, then Developer is obligated and the unit mix and type of units, whether senior or multifamily units, may change, but the requirement to have 82 covenanted, onsite Affordable Units remains a Developer obligation (and its Guarantor’s).

Pursuant to the California Health and Safety Code and California Code of Regulations, and as an example, based on the 2025 income limits issued by State Housing and Community Development (“HCD”), and separately by TCAC, the income limits for Low Income Households and calculation of Affordable Rent for 1-bedroom and 2-bedroom units are set forth in the following tables. Income and rent standards are adjusted annually based on income limits issued by HCD and separately by TCAC, and referenced and set forth in the DBAHA; generally, for tax credit projects, income limits and monthly rent are higher than HCD and HSC requirements.

Income Level
2025
1 person
household
2 person
household
3 person
household
4 person
household
5 person
household
6 person
household
Low/Lower
HSC
$94,750 $108,300 $121,850 $135,350 $146,200 $157,050
Median $95,600 $109,300 $122,950 $136,600 $147,550 $158,450 Low/Lower
TCAC
$94,800 $108,320 $121,840 $135,360 $146,240 $157,040
Under HSC 50053(b)(1) 2025 Affordable Rent for Lower Income Households for a Project not financed by tax credits or housing bonds::1
Renting a 1-bedroom unit, monthly rent may not exceed $1,639.50 Renting a 2-bedroom unit, monthly rent may not exceed $1,844.25 Under HSC 50053(b)(2) 2025 Affordable Rent for Lower Income Households for a Project financed by tax credits or housing bonds:
2 Renting a 1-bedroom unit, monthly rent may not exceed $2,105.00 Renting a 2-bedroom unit, monthly rent may not exceed $2,504 1 Affordable Rent for Lower Income Households is the product of 30 percent times 60 percent of the area median income adjusted for family size appropriate to the unit. Health and Safety Code Section 50053 (b)(1). 2 HSC Section 50053(b)(2) for Affordable Rent for Lower Income Households for projects financed by federal or state low-income housing tax credits or housing bonds.

Euclid & Heil Residential Project Density Bonus and Affordable Housing Agreement October 23, 2025

Development and covenanting of the Affordable Units, inclusive of the Senior Apartments on the Affordable Parcel, will comply with the DBL and City’s Inclusionary Housing Program that requires the City and Developer to enter into the DBAHA, which includes all required components of the DBL, the City’s Inclusionary Housing Program, and related affordable housing laws for Low-Income rental units. Staff, therefore, recommends that the City Council adopt the attached Resolution approving the DBAHA (Attachment No. 3).

FINANCIAL REVIEW
There is no financial impact associated with approving the DBAHA.

PUBLIC NOTIFICATION
The Euclid & Heil Residential Project was published in accordance with State Law and City Policy for the June 25, 2025, Planning Commission public hearing. Public notification is not necessary for the approval of the attached DBAHA, and this item was duly included in the posted City Council agenda for this regular meeting.

ENVIRONMENTAL IMPACT REVIEW
On June 25, 2025, the Planning Commission approved Resolution No. 25-10 approving an addendum to the certified Fountain Valley Final Program Environmental Impact Report (State Clearinghouse #2022100563) for the Project. Project approvals require a DBAHA to implement the DBL and Project. The proposed DBAHA is attached to the proposed Resolution for the City Council’s consideration (Attachment No. 2).

ATTORNEY REVIEW
Special Counsel Celeste Brady of Stradling Yocca Carlson & Rauth has reviewed this report and prepared and negotiated the DBAHA in cooperation with Developer and Affordable Developer’s respective counsel, and in connection with preparing the DBAHA consulted with the City’s legal counsel, Colin R. Burns of Harper & Burns.

ALTERNATIVES
Alternative No. 1: Adopt the attached Resolution of the City Council of the City of Fountain Valley, California, approving a Density Bonus and Affordable Housing Agreement for the Euclid & Heil Residential Project.

Alternative No. 2: Do not adopt the attached Resolution of the City Council of the City of Fountain Valley, California, approving a Density Bonus and Affordable Housing Agreement for the Euclid & Heil Residential Project.

RECOMMENDATION
Staff recommends the City Council act on Alternative No. 1 and adopt the attached Resolution of the City Council of the City of Fountain Valley, California, approving the Density Bonus and Affordable Housing Agreement for the Euclid & Heil Residential Project.

Euclid & Heil Residential Project Density Bonus and Affordable Housing Agreement October 23, 2025

Prepared by: Steven Ayers, Principal Planner
Reviewed by: Omar Dadabhoy, Deputy City Manager/Community Development Director
Approved by: Maggie Le, City Manager
Attachments:

1. Planning Commission Resolution No. 25-11
approving Precise Plan 579

2. Resolution approving a Density Bonus and Affordable
Housing Agreement for the Euclid & Heil Residential
Project

3. Density Bonus and Affordable Housing Agreement
(DBAHA) with Attachments Nos. 1 to 10, inclusive.

RESOLUTION NO. 25-11

A RESOLUTION OF THE FOUNTAIN VALLEY PLANNING COMMISSION APPROVING PRECISE PLAN NO. 579, CONDITIONAL USE PERMIT NO. 1930, AND TENTATIVE PARCEL MAP NO. 2024-103 SUBMITTED BY

EPD SOLUTIONS, ON BEHALF OF EUCLID & HEIL FV OWNER, LLC, TO CONSTRUCT A RESIDENTIAL COMMUNITY TO CONSIST OF 304 FORRENT MARKET RATE APARTMENTS, 83 FOR-RENT SENIOR AFFORDABLE APARTMENTS (82 AFFORDABLE UNITS AND 1
MANAGER UNIT), 183 FOR-SALE TOWNHOMES, AND 36 FOR-SALE
TRIPLEXES TOTALING 606 UNITS ON THE 18.09-ACRE LOT LOCATED AT 16300 EUCLID STREET (NORTHEAST CORNER OF EUCLID

STREET AND HEIL AVENUE)
WHEREAS, EPD Solutions (“Applicant”) has submitted a request to construct a residential community to consist of 304 for-rent market rate apartments, 83 for-rent senior affordable apartments (82 affordable units and 1 manager unit), 183 for-sale townhomes, and 36 for-sale triplexes totaling 606 units on the 18.09-acre lot located at 16300 Euclid Street (northeast corner of Euclid Street and Heil Avenue) (“Project”); and WHEREAS, EPD Solutions has submitted the application on behalf of the property owner, Euclid & Heil FV Owner, LLC, who is the owner of the Site at 16300 Euclid Street (APN #144-111-01), which is formally described in the legal description attached hereto as “Exhibit A” (“Site”); and
WHEREAS the Project includes the following applications in accordance with the Fountain Valley Municipal Code (FVMC):
 Approval of an Addendum to the certified Fountain Valley General Plan Final Program Environmental Impact Report (State Clearinghouse [SCH]# 2022100563) (General Plan FEIR). For reference, the General Plan FEIR can be accessed at www.fountainvalley.gov/1282/General-Plan-Update.  Per FVMC Chapter 21.44, a Precise Plan is required for the development of any proposed structures in the City, except for structures in the R1 zoning district.  Per FVMC Chapter 21.08.040 Table 2-2, a Conditional Use Permit is required for multi-family dwellings in the R4 High Density Multiple Dwelling zoning district.  Per FVMC Chapter 21.72, a Tentative Parcel Map is required for the subdivision of four or fewer parcels.
 Per FVMC 21.17.040, all new residential developments shall include inclusionary units and the applicant shall execute a written affordable housing agreement with the city to determine project compliance with the requirements of Chapter 21.17.

WHERAS, the 2021-2029 Housing Element, approved through Resolution No. 9853

Resolution No. 25-11

by the City Council on October 4, 2022 and certified by the State Housing Community Development Department (“HCD”) on October 13, 2022, lists the real property located at 16300 Euclid Street, Fountain Valley as an opportunity site to meet the City’s Regional Housing Needs Assessment (RHNA) allocation of 4,839 units. The Housing Element identifies the Site as an underutilized site in “Figure H-1 Housing Sites Inventory” and “Table H-22 Housing Sites Inventory” with 411 total potential units. Footnote 6d in Table H-22 notes that 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 the table, and assumed for the purposes of accommodating the RHNA, exclude the application of a density bonus, the total capacity would be increased with the inclusion of a density bonus. These capacity figures have also been vetted with the public and property owners; and
WHEREAS, per the California Environmental Quality Act (CEQA), the Fountain Valley Planning Commission first considered the accompanying Addendum to the certified Fountain Valley General Plan Final Program Environmental Impact Report (State Clearinghouse [SCH]# 2022100563) (General Plan FEIR). For reference, the General Plan FEIR can be accessed at www.fountainvalley.gov/1282/General-Plan-Update in a separate action, as contained in Resolution 25-10, at its noticed public hearing on June 25, 2025; and WHEREAS, pursuant to CEQA Guidelines section 15164, an addendum is appropriate in order to explain why no changes or additions to the General Plan FEIR are necessary and why none of the conditions described in CEQA Guidelines section 15162 calling for preparation of a subsequent EIR have occurred; and WHEREAS, the City prepared an addendum to the General Plan FEIR to address the potential environmental impacts of the Project and Entitlements, which found that there are no new significant impacts nor any increase in the severity of previously identified impacts, and that no change in circumstance has occurred with respect to the General Plan FEIR and the proposed Project and Entitlements or the environment affected by the circumstance has occurred with respect to the General Plan FEIR and the proposed Project that would alter prior environmental findings, conclusions, or mitigation measures; and WHEREAS, the City has complied with the requirements of the Government Code Section 65300 et seq., the current State of California General Plan Guidelines, and the City’s applicable ordinances with respect to review and consideration of the proposed Project, including the Amendments; and
WHEREAS, the Fountain Valley Planning Commission considered Precise Plan No. 580, Conditional Use Permit No. 1930, and Tentative Parcel Map No. 2024-103 at its noticed public hearing on June 25, 2025; and
WHEREAS, under the Density Bonus and Affordable Housing Agreement (“DBAHA”), City Covenants and Authority Regulatory Agreement the 606-Unit Project is required to provide 82 units covenanted for tenancy and occupancy for a 55-year Affordability Period by Low Income Households and the Prescribed Rent Levels and Tenant Mix at the Project include:

Resolution No. 25-11

 Low Income Units: Total of 82 low income units with the following breakdown:
o Seventy one (71) 1-bedroom units
o Twelve (12) 2-bedroom units
Each and all for tenancy and occupancy by qualified Extremely Low-Income, Very Low-Income, and Low-Income Households at an Affordable Rent.;
WHEREAS, per Government Code Section 65915 (the “State Density Bonus Law”), a City must grant a waiver or reduction of development standards that would preclude the construction of the Project entitled to the benefits under State Density Bonus Law unless the City finds that the requested waiver would:
 Have a specific, adverse impact upon health, safety, or the physical environment which cannot be mitigated;
 Would have an adverse impact on any property listed in the California Register of Historical Resources;
 Or that the waiver would be contrary to State or federal law; and WHEREAS, the proposed waivers would not:
 Result in a direct physical impact on the environment due to a conflict with a regulation adopted for the purpose of avoiding or mitigating an environmental effect;
 The Project would not have an adverse impact on a property listed in the California Register of Historical Resources;
 Be contrary to State or federal law; and
WHEREAS, the Project applicant has requested application of the State Density Bonus Law parking ratios provided in Government Code section 65915(p)(1); and WHEREAS, the Planning Commission has determined that the proposed Precise Plan, Conditional Use Permit, and Tentative Parcel Map are consistent with the Fountain Valley General Plan, as noted below; and
WHEREAS, the Planning Commission has imposed conditions, attached as Exhibit 1 herein, pursuant to the CEQA, Precise Plan, Conditional Use Permit, and Tentative Parcel Map processes, which mitigate potential negative effects of the proposed Project; and WHEREAS, the Fountain Valley Planning Commission considered the Project at its noticed public hearing on June 25, 2025.

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 FVMC, Title 21, and the Statutes of the State of California.

Resolution No. 25-11

SECTION 2
The General Plan FEIR was certified by the City Council on November 21, 2023. An Addendum to the FEIR (Exhibit 1 of Resolution No. 25-11) has been prepared to identify whether the proposed revisions would result in any new significant impacts beyond those identified in the General Plan FEIR (CEQA Guidelines Section 15162).

As detailed in the Addendum, on the basis of substantial evidence in the light of the whole record, a Subsequent or Supplemental EIR is not required for the proposed Project because none of the criteria requiring such a document under Public Resources Code Section 21166 or State CEQA Guidelines section 15162 are met.

The Project would result in no new significant impacts that were not analyzed in the General Plan FEIR, nor would the proposed Project cause a substantial increase in the severity of any previously identified significant impacts. The potential impacts associated with the proposed Project would either be the same or less than those described in the General Plan FEIR. In addition, there are no substantial changes to the circumstances under which the proposed Project would be undertaken that would result in new or more severe environmental impacts than previously addressed in the General Plan FEIR, nor has any new information regarding the potential for new or more severe significant environmental impacts been identified.

Therefore, in accordance with Section 15164 of the State CEQA Guidelines, an Addendum to the previously certified General Plan FEIR has been prepared for the proposed Project.

The Planning Commission, as the Lead Agency, arrived at its independent judgement and found that on the basis of the Addendum and any comments received that there is no substantial evidence that the Project would have a significant adverse impact on the environment provided that the mitigation measures identified in the environmental document are incorporated into the Project.

SECTION 3
The Federal Clean Water Act (CWA) prohibits the discharge of pollution to the storm drain system. A Water Quality Management Plan (WQMP) details how a development Project would prevent post-construction water pollution. The Project is required to have a WQMP as a condition of the Project and an approved WQMP is required prior to issuing building permits.

The Applicant/Developer has prepared a Water Quality Management Plan as required by the National Pollution Discharge Elimination System. This Project was evaluated in the WQMP and the WQMP is hereby approved. The findings and recommendations contained therein shall be incorporated into the Project.

SECTION 4
The Project requires a Precise Plan of Design application as required by FVMC 21.44.030.

Resolution No. 25-11

Findings and Supporting Facts: The Planning Commission finds that the subject application meets the criteria of a Precise Plan Permit found in Chapter 21.44 of the FVMC as follows:

1. The design and layout of the proposed development would:
a. Be consistent with the actions, goals, objectives, and policies of the general plan, any applicable specific plan, and the development and design standards/guidelines of the applicable zoning district.

The proposed use would be consistent with the actions, goals, objectives, and policies of the General Plan. No Specific Plan exists or is proposed for the project site. The Project would be designed to be compatible with the scale and character of a typical project in the High Density Residential Land Use as envisioned in the Housing Element and General Plan with the inclusion of a density bonus. The Project would reserve 82 units (15 percent of the base density) as affordable to low-income households earning less than 80 percent of the County median income. Although State Density Bonus Law (Government Code Sections 65915- 65918) allows for a 27.5 percent, or 149 unit, density bonus, the Applicant has elected to construct only 63 density bonus units for a density bonus of 11.7 percent.

State Density Bonus Law allows one (1) incentive or concession and unlimited waivers for the type of development proposed in which a certain number of the “base” units are restricted for low-income households.

The applicant is requesting reductions and waivers from certain development standards under the Fountain Valley Municipal Code (“FVMC”) for the Project in accordance with California Density Bonus Law (Gov. Code, §§ 65915, et seq.), in order for the Project to be able to accommodate the residential units, including the affordable housing units, planned for the Project. These reductions and waivers are necessary because, without them, the Project would be physically infeasible to implement and construct due to site constraints and certain City development standards, as described in more detail below. The requested reductions and waivers are submitted pursuant to subdivisions (e) and (o)(2) of Government Code section 65915.

The applicant has requested and is granted the following:

Concession #1 – Reduction in private open space requirement of 100 SF per unit of open space and with no dimension less than 10 feet as established in “FVMC

21.08.040 Table 2-3 Residential District General Development Standards" to allow Unit A2 within the senior affordable project to not include a private balcony/patio/deck, 0 to 82 SF private balcony/patio/deck for the senior affordable units with minimum dimensions less than 10 feet, and allow for 42 to 72 SF private balcony/patio/deck for the market rate multi-family units with minimum dimensions less than 10 feet. Application of the municipal code requirement for private open space would make the project financially infeasible:
 Adding a 100 SF private balcony/patio/deck to Unit A2 or additional SF for a balcony/patio/deck for the senior affordable and market rate apartments would add additional materials and construction costs to the project.

Resolution No. 25-11

 Alternatively, reducing the livable SF of the units in order to accommodate the minimum 100 SF private open space requirement would reduce the livable square footage of the units which will reduce the per square foot rentable area for the project and make the project financially infeasible.

Waiver #1 – An increase from the maximum building height of 35 ft./3 story as stated in “FVMC 21.08.040 Table 2-3 Residential District General Development Standards” to allow for 56 ft. 10 in./5 stories and 67’-5” to the top of the elevator tower for the market rate apartment and 58 ft. 10 in./5 stories for the senior affordable apartment. Application of the code maximum height requirement would make construction of the market rate and affordable housing units physically infeasible within the proposed site footprints; the additional height increase would allow for the necessary additional unit stacks in the building and provide floor plates that can accommodate the increase in density. Therefore, a waiver is required in order to physically construct the units on the site and within the development footprint.

Waiver #2 – An increase in building site coverage from a maximum of 40 percent as established in “FVMC 21.08.040 Table 2-3" to allow 41.3 percent total building coverage for the entire site, 71.6 percent lot coverage for the market rate apartment building site, and 77.1 percent lot coverage for the senior affordable project is required. The project would be physically infeasible to construct without this waiver as additional developable area is needed in order to provide for an increase in density and inclusion of affordable housing units.

Waiver #3 – Increase the maximum number of units for Lot 2 the market rate apartment site and Lot 3 the senior affordable site, from 1 unit per 1,435 SF to allow for 304 units or 3 units per 1,435 SF on Lot 2, and 83 units or 3.6 units per 1,435 SF on Lot 3. The municipal code maximums would physically prevent construction of 304 market rate units and 82 affordable and one manager’s unit on the site and prevent the inclusion of affordable housing units. Additionally, the necessity of this waiver request stems from the increased density permitted pursuant to the State Density Bonus Law by constructing 82 affordable housing units.

Waiver #4 – A waiver from FVMC 21.17.060(b)(2) requiring that affordable units must be developed within the same housing type to allow the senior affordable units to be developed in a standalone building, rather than within the same housing type as the market-rate units. Application of the requirement that the affordable units be within the same housing type would not be physically feasible due to the project’s design, which includes a separate senior affordable apartment building located on a separate legal lot per the requirements needed for an affordable housing developer to secure project financing.

Reduction #1 – A decrease in setbacks, as established in code section “FVMC

21.08.040 Table 2-3," to allow a 0 ft. side setback at the senior affordable apartment property line and a 10 ft. rear setback for the senior affordable and market rate apartment site, a 0 ft. side and rear setback for the senior affordable

Resolution No. 25-11

apartment site is required to allow for additional developable areas in order to physical construct the market rate and senior affordable housing units. In order to partner with an affordable housing developer and secure project financing, a separate legal lot is needed. Therefore, where the side and rear setbacks are measured from by code versus the setbacks provided from property lines would make construction of the project physically infeasible based on the lot configurations.

Reduction #2 – A reduction from FVMC 21.08.040, Table 2-4’s minimum unit size for one-bedroom units of 750 SF, to allow for one bedroom unit ranging from 600- 609 SF for the junior one-bedroom market rate units. Application of the minimum one-bedroom unit size per municipal code to the market-rate junior one-bedroom units would make the construction of 304 market-rate units physically infeasible within the proposed site footprint. The smaller junior one-bedroom units are necessary to create additional developable area, allowing for increased density and the inclusion of affordable units. Therefore, a waiver is required to physically accommodate the proposed unit count within the development footprint.

Reduction #3 – A reduction from FVMC 21.17.060(b)(1) requirement that the affordable units have an average square footage of at least 85% of market rate units within the same housing types with the same bedroom count, to allow for the one and two bedroom affordable housing units to have an average square footage of at least 78% of the market rate two bedroom units. Application of the unit square footage minimum for the two-bedroom affordable housing units would require significantly larger senior unit sizes than is typical for low-income housing tax credit (LIHTC) financed senior housing projects which only require a minimum of 700 SF for two-bedroom units. Increasing the size of the affordable two-bedroom units would reduce the number of affordable units that can be constructed. Additionally, applying the affordable unit square footage minimum would make the construction of 82 affordable units, and one manager’s unit physically infeasible within the proposed site footprint. This would ultimately prevent the inclusion of affordable housing on the site. The smaller two-bedroom units are necessary to create additional developable area, allowing for increased density and the inclusion of affordable units. Therefore, a reduction is required to physically accommodate the proposed unit count within the development footprint.

Reduction #4 – A reduction from FVMC 21.17.060(b)(2) requiring the same bedroom count ratio as the market rate units. The requirement that the senior affordable apartment needs to have the same bedroom count ratio as the market rate apartment would physically limit the total number of affordable units that could be constructed within the standalone senior affordable apartment building.

Increasing the number of two-bedroom units to provide the same bedroom count ratio as the market rate apartments would physically limit the total number of affordable units that could be developed within the fixed building footprint.

Furthermore, the affordable units are to be marketed to low-income senior residents, reducing the demand for two-bedroom units. Therefore, deviation from the market rate apartment bedroom count ratio is necessary in order to develop the maximum number of affordable units.

Resolution No. 25-11

With the approval of the Precise Plan, Density Bonus, and requested waivers and concessions, the Project would be consistent with the General Plan and Zoning Map.

The Project would not create any inconsistencies with the General Plan or within the Municipal Code with the approval of a density bonus to bring the density to 33.5 units/acre. The Project would support the implementation of various General Plan goals and policies from the Land Use Element, Mobility Element, Housing Element 2021-2029, and Public Facilities and Safety Element as noted below.

The Project’s design is in substantial conformance with the Land Use Element and Housing Element’s visions for the Project Site by providing a variety of new units in a range of affordability and sizes. The General Plan land use designation for the Project Site is High Density Residential. The Applicant proposes a residential community to consist of 304 for-rent market rate apartments, 83 for-rent senior affordable apartments (82 affordable units and 1 manager unit), 183 for-sale townhomes, and 36 for-sale triplexes totaling 606 units, which is substantially consistent with the General Plans vision.

As noted above, the Project is consistent with the General Plan goals and polices below:

Land Use Element
Goal LU-1: An arrangement of compatible land uses that protects and maintains attractive and safe neighborhoods while promoting dynamic activity centers and preserving conventional commercial and industrial uses.

Policy LU-1.1 Land use compatibility and viability. Require that new development is located, scaled, buffered, and designed to minimize negative impacts on existing conforming uses and adjacent neighborhoods. Required that new residential developments are located, scaled, buffered, and designed so as to not hinder the economic viability and continuity of areas planned for nonresidential uses.

The buildings and plots have been designed to serve as a transition between the surrounding single-family residential neighborhood and new multi-family residential community. The triplex structures located along the north and east borders of the Project area are 2-stories, 27-feet 2 inches in height with hip roofs which is similar to the roof style of the adjacent single-family neighborhood. The second-floor rear elevations have limited windows with no balconies. The backyards would provide a 25-foot rear setback which is the same minimum rear yard setback requirement of the surrounding R1 Single-Family zone. Additionally, the 3-story townhomes would be setback a minimum 100 feet from the single-family residential neighborhoods to the north, east, and south (across Heil Avenue). Lastly, the multi-family apartments (Market Rate and Senior Affordable buildings) would be situated at the corner of Euclid Street and Heil Avenue, furthest away from the existing single-family residential neighborhood to the north and east.

Policy LU-1.2 Land Use Plan consistency. Consider proposed development that is consistent with the Land Use Plan (i.e., it does not require a change in Land Use

Resolution No. 25-11

Designations), to be generally compatible and consistent with surrounding land uses and a community’s identity. Other policies in the General Plan and development standards in the Development Code may require additional site, building, and landscape design treatment to ensure compatibility.

Policy LU-1.3 Mix of land uses. Maintain a balanced mix of high quality residential, retail, employment, industrial, open space, and public facility land uses to ensure a range of living options, fiscal sustainability, and convenient access to shops, restaurants, services, and well-paid and highly skilled jobs.

The proposed development would be consistent with the Land Use Plan and zoning for the property and therefore does not require a change in land use designation. The Project’s 606 units create a significant amount of urgently needed units without displacing or affecting existing units or residents. By balancing land use, density, and proximity to commercial uses served by transit, the Project adds needed residential units to an underutilized property creating new customers for surrounding businesses, thereby enhancing their economic viability.

The proposed scaling of the Project locates the most dense and tallest uses furthest away from the single-family homes to the north and east of the Project. Additionally, all buildings 3 stories or taller are located a minimum 100 feet from single-family homes to the north, east, and south of the Project. Lastly, the 2-story triplex buildings located along the north and east border of the Project are in line with the overall scale and character of the existing detached single-family homes. The 2-story triplexes are a similar height as the adjacent single-family homes and provide a similar 25-foot rear yard/buffer. Within the 25-foot rear setback, the Project would incorporate a landscape buffer to help promote privacy between the Project and the existing uses north and east of the Project.

The buildings and plots have been designed to serve as a transition between the surrounding single-family residential neighborhood and new multi-family residential community. The triplex structures located along the north and east borders of the Project area are 2-stories, 27-feet 2 inches in height with hip roofs which is similar to the roof style of the adjacent single-family neighborhood. The second-floor rear elevations have limited windows with no balconies. The backyards would provide a 25-foot rear setback which is the same minimum rear yard setback requirement of the surrounding R1 Single-Family zone. Additionally, the 3-story townhomes would be setback a minimum 100 feet from the single-family residential neighborhoods to the north, east, and south (across Heil Avenue). Lastly, the multi-family apartments (Market Rate and Senior Affordable buildings) would be situated at the corner of Euclid Street and Heil Avenue, furthest away from the existing single-family residential neighborhood to the north and east.

The Project provides a diverse palette of materials, colors, and landscape improvements to significantly enhance the built environment. As depicted in the plans attached to the Staff Report, the site features different architectural styles within different areas of the Project. The Market Rate and senior Apartments would feature a contemporary architectural design with stucco walls, horizontal siding, vertical metal panels, metal awnings, balconies or patios, and black vinyl windows. The Townhomes

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would feature a similar architecture to the apartments with stucco walls, horizontal siding, painted meal balcony railings, and vinyl windows and doors. The Triplex units, located adjacent to the single-family homes to the north and east, would provide a transitional modern and coastal modern style architecture to provide a buffer between the rest of the Project and the single-family homes to the north and east. The Transitional Modern Style would feature predominately stucco walls, tight roof eaves, recessed windows, metal trellis porch elements, and panel style garage doors. The Coastal Modern Style would feature stucco and horizontal siding, 12” roof eaves, trimmed windows, traditional covered porches, and linear style garage doors.

The Project would feature three individually programmed courtyards for the use of the Market Rate Apartments including a pool oasis courtyard, a game courtyard, and an entertainment courtyard. Outdoor amenities include a pool, spa, outdoor bbq’s, outdoor seating, game lawn, ping pong and pool tables, lounge seating, a projection screen, movie/yoga lawn, outdoor kitchen, and dining tables. The Senior Affordable Apartments would feature an outdoor community courtyard space with amenities for the residents including lounge seating, outdoor bbq’s, dining tables with umbrellas, and landscaping. The Townhomes and Triplex units would include a pocket park with a play structure and play surfacing and a community pool area with a spa, cabanas, lounge seating, restrooms and shower area, covered dining and seating, and outdoor grills.

The landscaping features a variety of specimen trees, palms, hedges, grasses, and groundcover throughout the site. These elements provide shade along sidewalks and surface parking areas within the development. Per FVMC 21.20.040(d)(2)(C), parking lots with more than one hundred spaces shall provide a concentration of landscape elements at primary entrances, including specimen trees, flowering plants, enhanced paving, and project identification and specimen trees shall be a minimum of a thirtysix-inch box variety at planting. Each entrance (three along Heil Avenue and one along Euclid Street) are enhanced with are enhanced with specimen trees, flowering plants, and enhanced paving. Enhanced paving is also provided at two additional locations at the main entrance to the Townhome/Triplex portion of the Project along Heil Avenue.

Together, these design and landscaping elements create an attractive and welcoming environment for residents and visitors.

Policy LU-1.6 School Planning. Coordinate with school districts on facility improvements, expansion, and contraction planning and activities.

The proposed project would be paying the required school impact fees that would in return provide funding for facility improvements, expansion, and contraction planning and activities.

Goal LU-2: A balance mix of land uses and development types that results in fiscal sustainability and support continuously improving public facilities and services.

Policy LU-2.1 Fiscal impacts. Require proposed new development to demonstrate that it can and will be adequately served by public facilities without negatively impacting existing capacities and levels of service. Require new development and changes in use requiring discretionary City approval to be fiscally neutral or beneficial.

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The Project was analyzed using the City’s Transportation Impact Assessment Guidelines to outline the specific steps for conducting an analysis using the VMT methodology and how to address the applicable general plan consistency requirements. Per the guidelines, a project can be screened from providing a project level assessment and found to have a less than significant impact if the entirety of the project is located within a Transit Priority Area, is located within a low VMT-generating area, or if it is a local serving retail project less than 50,000 square feet. Projects not screened through the steps above should complete a VMT Analysis and forecasting through the Orange County Transportation Analysis Model if they have a significant VMT impact.

The VMT Analysis for the Project concluded that the Project would screen out as it is within a low VMT-generating area. Therefore, in accordance with the City of Fountain Valley’s guidelines, the proposed Project is exempt from the preparation of any further VMT analysis and is presumed to have a less than significant CEQA-related transportation impact.

Additionally, the Traffic Impact Analysis addressed the potential circulation needs associated with the Project by studying ten (10) key intersections around the Project and analyzed the level of service at each intersection. The minimum acceptable LOS is LOS D. The TIA found that all of the studied intersections for the opening year plus Project scenario would meet the minimum acceptable level of service except for Newhope Street and Warner Avenue, which would operate at a LOS E during the PM peak hour. This intersection currently operates a LOS E, therefore no change to the LOS would occur at the intersection. Also, a Traffic Signal Warrant Analysis was prepared but found that no unsignalized intersections warranted a traffic signal.

The TIA also analyzed traffic generation through vehicle trip ends, defined as one-way vehicular movements, either entering or exiting the generating land use. The trip generation forecast for the proposed Project totals 3,228 daily trips, with 236 trips (65 inbound, 171 outbound) during the AM peak hour and 264 trips (155 inbound, 109 outbound) during the PM peak hour.

The Proposed Project would connect to existing water lines on Heil Avenue and Euclid Street, Mt. Nimbus Street, and Topaz Lane and an existing reclaimed water line on Heil Avenue, and would connect to the existing sewer line on Euclid Street.

Additionally, pursuant to Section 21.18.110, Undergrounding of Utilities, of the Fountain Valley Municipal Code, all utilities lines, such as cable and telephone lines, would be undergrounded.

Impacts to utilities and service systems would be less than significant. The Project would increase sewer flows, however, the increase would not exceed the projected future capacity of the City’s wastewater infrastructure. With the implementation of the General Plan policies and compliance with Section 14.36.130, Cost, Replacement, and Extension Fee, of the City’s Municipal Code, impacts were determined to be less than significant. The City’s Water System Master Plan is regularly updated to identify and address deficiencies and the Project would be subject to City permits, fees, and applications in order to ensure that they would not place an undue burden on existing

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infrastructure. Future expansions would be required to comply with the Construction General Permit, and City, and County specific regulations to minimize impacts; also, implementation of the General Plan policies would reduce impacts. The City requires individual drainage analyses for development projects to ensure conformity with the Citywide drainage system, and new development and significant redevelopment projects must analyze the 10- and 25-year storm events to determine if there would be impacts to the storm drain system. The Frank Bowerman Sanitary Landfill would be able to accommodate solid waste from the Project, and the Project would be required to comply with the CALGreen Building Code Standards, as well as the General Plan policies. Overall, impacts to wastewater treatment and collection, water supply and distribution systems, storm drainage systems, and solid waste would be less than significant.

Policy LU-2.2 Fair share contributions. Require new development to pay for its fair share of the cost for on- and off-site improvements.

The project would pay its fair share contributions for on and off-site improvements including the expansion and improvement of Heil Avenue, including new turn pockets and signal/signage modifications, Orange County Sanitation District Fees, School Fees, a park facilities fee, a traffic impact fee, a drainage annexation fee, sewer and water connection fees, a median beautification fee, and a fire facilities development impact fee/residential dwelling unit impact fee and an annual impact fee for senior units, if applicable.

The Project would also include several upgrades to intersections around the Project, as noted in the Staff Report, including improvements to Euclid Street and Heil Avenue, safety countermeasures to Euclid Street and Heil Avenue, improvements at Driveway #1 and Heil Avenue, improvements at Street B/Sugarloaf Street and Heil Avenue, and improvements at Driveway 2 and Euclid Street.

Goal LU-3: Neighborhoods, places, and buildings that are well maintained, demonstrate pride and reinvestment, and reinforce a sense of community.

Policy LU-3.2 Scale and character. Ensure that all new development is compatible with the scale and character of the surrounding neighborhoods in Fountain Valley.

The 2-story triplex buildings that front the site on the northern and eastern borders would be in line with the overall scale and character of the existing detached singlefamily homes. The 2-story triplexes would be similar height as the adjacent singlefamily homes and provide a similar 25-foot rear yard/buffer.

Heil Ave separates the southern portion of the site from the existing detached singlefamily homes. The southern edge of the Project would provide a landscape buffer, sidewalk, and bicycle lane. Additionally, the southern edge of the project would provide a sidewalk traversing east/west that would promote walkability along the site to Mile Square park across Euclid Street.

The height of the proposed buildings gradually decrease from the 5-story wrap apartment building with the market rate apartments at 56’10” and 67’5” to the top of

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the elevator tower and the senior affordable units at 58’10” and 67’5” to the top of the elevator tower, to the 32' (36’ to the top of the parapet) tall townhomes, to the 27'-2" tall triplexes. Euclid Street is designated as a primary arterial and provides an appropriate location for an apartment building.

Policy LU-3.5 Corridor design. Buildings, streetscapes, landscaping, and associated improvements along the City’s arterial streets should be attractive and promote a cohesive sense of place.

With the proposed street widening, the north side of Heil Avenue would be enhanced with a sidewalk, large trees, accent trees, shrubs and ground cover as depicted on the Landscape Plan attached to the Staff Report.

Mobility Element
Goal CM-1: A safe and efficient network of streets that are adequate for residents, businesses, visitors, and emergency services.

Policy CM-1.1 Level of service. Maintain a citywide level of service (LOS) not exceeding LOS D for intersections during the peak hours. Require new development projects to mitigate off-site traffic impacts to the maximum extent feasible to maintain the City’s LOS standard.

The Project was analyzed using the City’s Transportation Impact Assessment Guidelines to outline the specific steps for conducting an analysis using the VMT methodology and how to address the applicable general plan consistency requirements. Per the guidelines, a project can be screened from providing a project level assessment and found to have a less than significant impact if the entirety of the project is located within a Transit Priority Area, is located within a low VMT-generating area, or if it is a local serving retail project less than 50,000 square feet. Projects not screened through the steps above should complete a VMT Analysis and forecasting through the Orange County Transportation Analysis Model if they have a significant VMT impact.

The VMT Analysis for the Project concluded that the Project would screen out as it is within a low VMT-generating area. Therefore, in accordance with the City of Fountain Valley’s guidelines, the proposed Project is exempt from the preparation of any further VMT analysis and is presumed to have a less than significant CEQA-related transportation impact.

The Traffic Impact Analysis for the Project addressed the potential circulation needs associated with the Project by studying ten (10) key intersections around the Project and analyzed the level of service at each intersection. The minimum acceptable LOS is LOS D. The TIA found that all of the studied intersections for the opening year plus Project scenario would meet the minimum acceptable level of service except for Newhope Street and Warner Avenue, which would operate at a LOS E during the PM peak hour. This intersection currently operates a LOS E, therefore no change to the LOS would occur at the intersection. Also, a Traffic Signal Warrant Analysis was prepared but found that no unsignalized intersections warranted a traffic signal.

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The TIA also analyzed traffic generation through vehicle trip ends, defined as one-way vehicular movements, either entering or exiting the generating land use. The trip generation forecast for the proposed Project totals 3,228 daily trips, with 236 trips (65 inbound, 171 outbound) during the AM peak hour and 264 trips (155 inbound, 109 outbound) during the PM peak hour.

The Project would also include several upgrades to intersections around the Project, as noted in the Staff Report, including improvements to Euclid Street and Heil Avenue, safety countermeasures to Euclid Street and Heil Avenue, improvements at Driveway #1 and Heil Avenue, improvements at Street B/Sugarloaf Street and Heil Avenue, and improvements at Driveway 2 and Euclid Street.

GOAL CM-2: A comprehensive and multimodal network of streets, bikeways, and pedestrian areas that facilitates the safe and efficient movement of people and goods while minimizing vehicle miles traveled.

Policy CM-2.5 Site design. Require new development to incorporate amenities and pathways so that pedestrians and bicyclists can access the site and onsite businesses safely and conveniently from the public right-of-way and parking areas.

The Project includes amenities and pathways that ensure pedestrians and cyclists can access the site safely and conveniently from public rights-of-way and parking areas.

The site design emphasizes pedestrian orientation, integrating sidewalks and landscaping to connect various buildings and amenities within the community and to the public right-of-way. The site plan and renderings illustrate paved sidewalks wide enough to accommodate pedestrian traffic, allowing seamless movement between buildings, and among on site amenities for each of the Market Rate and Senior Affordable Apartments as well as the Townhomes and Triplexes.

The typical street sections for the development incorporate pedestrian walkways throughout the site. The project is proposing a sidewalk and a bike lane along Heil Avenue, thus promoting connectivity and walkability to pedestrians and bicyclists from east of the Project to north of the Project.

Policy CM-2.6 Access management. Minimize access points and curb cuts along arterials and in the proximity of an intersection to improve traffic flow and safety for vehicles and bicycles. Eliminate and/or consolidate driveways when new development occurs or when traffic operation or safety warrants.

The project would have one access point off Euclid which is located approximately 527' away from the intersection of Euclid and Heil.

The project proposes two access points off of Heil Avenue to the for-sale product types (townhomes and triplexes) with the closest being a distance of approximately 700' from the intersection of Euclid and Heil. The second access point to the for-sale product types would be located approximately 268' from residential collector street Mount Dunhaven. These distances allow for the appropriate queing to occur without being too close to backing up into any intersection.

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The apartment product has two parking garage entry points. One access point is located on the south side of the structure located off of Heil Avenue and another on the north side of the structure located off of Street D as noted in the Project Plans attached to the Staff Report. The access point on Heil Avenue is located approximately 225' from the intersection of Euclid and Heil. The access point located off of Street D is approximately 225’ from Euclid Street. As noted in the Traffic Impact Analysis, the applicant shows that sufficient queueing would be provided to each access point.

Additionally, the parking structure gates would be open from 6:00 am to 10:00 pm and would be down from 10:00 pm to 6:00 am and only operational for residents through a key fob. The queue length to the southern gate when closed at night would be 77 that would accommodate 3 car lengths and the queue length to the northern gate when closed at night would be 40 feet (without blocking the Private Street D) that would accommodate 2 car lengths.

Policy CM-2.7 VMT reduction. Promote new development and transportation demand management (TDM) strategies that will reduce household and employment vehicle miles traveled (VMT). Prioritize the implementation of TDM strategies over the expansion of roadway capacity.

The Project was analyzed using the City’s Transportation Impact Assessment Guidelines to outline the specific steps for conducting an analysis using the VMT methodology and how to address the applicable general plan consistency requirements. Per the guidelines, a project can be screened from providing a project level assessment and found to have a less than significant impact if the entirety of the project is located within a Transit Priority Area, is located within a low VMT-generating area, or if it is a local serving retail project less than 50,000 square feet. Projects not screened through the steps above should complete a VMT Analysis and forecasting through the Orange County Transportation Analysis Model if they have a significant VMT impact.

The VMT Analysis for the Project concluded that the Project would screen out as it is within a low VMT-generating area. Therefore, in accordance with the City of Fountain Valley’s guidelines, the proposed Project is exempt from the preparation of any further VMT analysis and is presumed to have a less than significant CEQA-related transportation impact.

Housing Element
Goal H-1: Promote and encourage the development of a variety of housing opportunities to accommodate current and projected households.

Policy H-1.1 Construction of new units. Promote the construction of additional dwelling units to accommodate Fountain Valley’s share of regional housing needs in accordance with adopted land use policies.

According to the 6th cycle RHNA adopted by the Southern California Association of Governments (SCAG), Fountain Valley must plan to accommodate 4,839 housing units, including 2,093 lower-income units, during the 2021-2029 planning period. This

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includes 786 low-income units (50-80% AMI) and 834 moderate-income units (80- 120% AMI). This proposed project would add 606 units to the community. There would be a total of 304 for rent market rate apartment, 83 for rent senior affordable apartments (82 affordable units and 1 manager unit, 183 for sale townhomes, and 36 for sale triplexes.

Policy H-1.2 Variety of housing options. Provide a variety of housing opportunities for all income levels through different land uses and densities.

To address this need, the Project proposes the development of new, high-quality, residential development, complementing the City’s efforts to rezone the area for high density residential use. The Project would create 606 units without displacing any existing residents or demolishing any current dwellings. These units vary in size and design, offering a mix of junior one-bedroom, one-bedroom, two-bedroom, fourbedroom, and five-bedroom units.

The Project proposes a variety of housing oppotrunites through market rate apartments, senior affordable apartments, towhhomes, and triplex units. The project is proposing 15% of the base density as affordable housing in the senior affordable units.

The Market Rate Apartments would offer a square foot range from 600-1,075 sf (junior one-bedroom, one-bedroom, and two-bedroom). The range in different apartment types would allow for different price points.

The Senior Affordable Apartments would offer a square foot range from 587-828 sf (one-bedroom and two-bedroom).

The for-sale products would be townhomes (1,825-2,285 sf) and triplexes (2,083- 2,274 sf). The range in different apartment types would allow for different price points.

Goal H-2: Assist in the provision of housing affordable to lower income households.

Policy H-2.1 Infill housing. Promote infill housing development through the adaptive reuse of underutilized parcels.

The parcel is currently vacant and was used as a strawberry farm in the past. The project would promote infill housing, with a density bonus, to achieve a development of 606 units consisting of 304 for rent market rate apartments, 83 for rent senior affordable apartments (82 affordable units and 1 manager unit), 183 for sale townhomes, and 36 for sale triplex units on an underutilized parcel.

The Project enhances the Site’s density using the State Density Bonus law and infills this “under-utilized” site with new residential uses. The infill development of this Project Site expands the current density of the site by providing net-new 606 units within walking distance of mile square park. Building this Project here thus furthers the City’s goal of promoting infill housing development through the adaptive reuse of underutilized parcels. Providing residential units near transit advances the accessibility of the site to lower-income residents and visitors who may use public

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transportation to commute to and from the Project Site. This is especially pertinent given that 15% of the base density of the Project’s units, or 82 total units, would be reserved for rental to lower-income households, with rents set at 80% AMI. Both northbound and southbound bus stops exist approximately 215 feet north of the Project site and approximately 450 feet south of the Project site.

Policy H-2.3 Range of rental and ownership options. Encourage new housing construction for rental and ownership housing in a mixture of price ranges.

To address this need, the Project proposes the development of new, high-quality, residential development, complementing the City’s efforts to rezone the area for high densty residenital use. The Project would create 606 units without displacing any existing residents or demolishing any current dwellings. These units vary in size and design, offering a mix of junior one-bedroom, one-bedroom, two-bedroom, fourbedroom, and five-bedroom units.

The Project proposes a variety of housing oppotrunites through market rate apartments, senior affordable apartments, towhhomes, and triplex units. The project is proposing 15% of the base density as affordable housing in the senior affordable units.

The Market Rate Apartments would offer a square foot range from 600-1,075 sf (junior one-bedroom, one-bedroom, and two-bedroom). The range in different apartment types would allow for different price points.

The Senior Affordable Apartments would offer a square foot range from 587-828 sf (one-bedroom and two-bedroom).

The for-sale products would be townhomes (1,825-2,285 sf) and triplexes (2,083- 2,274 sf). The range in different apartment types would allow for different price points.

According to the 6th cycle RHNA adopted by the Southern California Association of Governments (SCAG), Fountain Valley must plan to accommodate 4,839 housing units, including 2,093 lower-income units, during the 2021-2029 planning period. This includes 786 low-income units (50-80% AMI) and 834 moderate-income units (80- 120% AMI).15 Of the Project's 606 proposed units, 15% of the base density would be reserved for lower-income households, with rents set at 80% AMI. While the City’s Housing Element designates the Project site (referred to as "Miller Propery" in the Element) to provide 62 low-income units, the Project would provide twenty more lowincome units with a total of 82 units, which constitutes approximately 15% of the base density of the City’s RHNA requirements in the 50-80% AMI category. In summary, the Project aligns with the City's goals by contributing to Fountain Valley’s regional housing needs, offering a diverse range of new rental options at various price points on an underutilized site.

Public Facilities and Safety Element
Goal PFS-1: Reliable and cost-effective infrastructure systems and services that adequately serve residents and businesses.

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Policy PFS-1.2 Approved beyond project supplies. Approve new development with more than 100 or 25,000 square feet of nonresidential building space only if either:

The projected water demand of the proposed development can be accommodated by the remaining projected supplies in the latest adopted Urban Water Management Plan, or
The developer of the proposed development provides a separate water supply assessment that is approved by the Director of Public Works and demonstrates that there is an adequate 25-year water supply that will serve the proposed project and not diminish the water supply of existing residents and businesses in Fountain Valley.

The Water Supply Assessment prepared for the Project shows that the city’s existing and future water supply is able to accommodate the increased water demand associated with the proposed Project.

The WSA determines that there is sufficient water supply to meet the Project demands for all scenarios up to 2045. The analysis assumes a groundwater supply based on an 85% basin product percentage (BPP), with remaining demand met by imported water from the Metropolitan Water District of Southern California (MET) through the Municipal Water District of Orange County. The MET’s commitment to the region is to provide its service area with adequate supplies to meet expanding and increasing needs in the years ahead, allowing any member agency to purchase an unspecified amount. This approach ensures the City of Fountain Valley can meet its water needs under various conditions.

If the City is allowed by the Orange County Water District to pump above the 85% BPP, the demand for imported water would decrease, further securing the City’s water supply.

Additionally, the projected recycled water demand for the Project fits within the City’s anticipated water supply up to 2045. The combination of local potable and recycled water sources, along with strategic use of imported water, provides a reliable framework to meet in the increase in demands from the Project.

Policy PFS-1.4 Sewer System. Provide and maintain wastewater collection facilities that adequately serve existing land uses and future development projects. Coordinate with the Orange County Sanitation District to maintain adequate and efficient wastewater collection and treatment facilities.

The proposed uses would be served by a gravity system, with a connection to the existing city sewer line in Euclid Street.

Policy PFS-1.5 Stormwater drainage. Provide and maintain stormwater collection facilities to adequately protect residents and businesses from flood hazards, upgrading existing facilities to current standards whenever financially feasible.

Coordinate with the Orange County Flood Control District to maintain and enhance

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the capacity of regional stormwater drainage facilities.

Development of the Project would alter the on-site drainage patterns with the development of the buildings, roadways, and associated site improvements. However, the Project, would include detention basins within the site to provided storage to keep the peak 100-year storm event flows below the existing peak flows. The volumes required for the detention basins are 13,200 cf for the west apartment portion of the site and 31,500 cf for the east single family home portion of the site. The Proposed Project would include basins that are 13,500 cf and 33,600 cf, which are larger then the volume that is required to ensure that the volume of stormwater does not exceed the existing stormwater infrastructure capacity in the area. Thus, stormwater runoff expected at buildout of the Proposed Project would not exceed existing storm drainage capacities.

The Project would be subject to the Construction General Permit (CGP) which requires the submittal of a Storm Water Pollution Prevention Plan (SWPPP), and during operation would include a Municipal Stormwater (MS4) Permit. Such regulations would require Best Management Practices (BMPs), which would minimize pollutants traveling into waterways. Furthermore, the Proposed Project would comply with General Plan Policies and adhere with local, state, and federal regulations. Site drainage would be accommodated by the use of large underground vaults, stormwater pumps, and a series of storm drain lines. The drainage would be ultimately conveyed to an underground detention system at two locations of the site individually serving the apartments and for sale program units which would both ultimately discharge into the existing city’s storm drain lateral.

The proposed drainage includes two drainage areas (DAs), DA-1 and DA-2. Within these DAs there would be 10 drainage management areas (DMAs). Within DA-1 there would be four DMAs, DMA-1, DMA-2, DMA-3 and DMA-4. Within DA-2 there would be six DMAs, DMA-1, DMA-2, DMA-3, DMA-4, DMA-5, and DMA-6. This site does not fall within a hydromodification zone and therefore the 2-year storm was not analyzed.

DA-1 would include the entirety of the proposed apartment side buildings within the west portion of the project site along Heil Street and Euclid Avenue. DA-2 would include the proposed for sale buildings within the remainder of the project site. The project site has a high groundwater level that causes infiltration BMPs to be infeasible.

As a result, proprietary Modular Wetlands Systems (MWS) have been sized and proposed as part of the storm drain inlet design. As shown in Table 13, Modular Wetland System Sizing, DA-1 would place four MWS’s that correlate to each DMA to treat the design capture flow of 0.69 cubic feet per second (cfs); similarly DA-2 would install six MWS to treat the design capture flow of 2.74 cfs. The MWS’s all have allowable flows that surpass the necessary design capture flow (Kimley-Horn 2025b). b. Not interfere with the use and enjoyment of neighboring, existing or future developments, and would not create traffic or pedestrian hazards.

The Project would not interfere with the use and enjoyment of neighboring existing or future developments and would not create traffic or pedestrian hazards. The Project would be completely separate and would not provide vehicular or pedestrian access directly from the project to the adjacent existing neighborhood

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to the north and east. Additionally, the triplex units closest to the single-family home to the north and east would provide a 25-foot rear setback, similar to the required rear setback for the adjacent single-family neighborhood. Also, the proposed height of the triplex units closest to the existing single-family homes to the north and east is 27 feet 2 inches, which is shorter than the permitted height in the R1-Single Family Residential district of 30 feet. Lastly, all residential buildings 3 stories or taller would be setback a minimum 100 feet from the adjacent existing single-famly homes to the north, east, as well as to the south across Heil Avenue.

The Project was also analyzed using the City’s Transportation Impact Assessment Guidelines to outline the specific steps for conducting an analysis using the VMT methodology and how to address the applicable general plan consistency requirements. Per the guidelines, a project can be screened from providing a project level assessment and found to have a less than significant impact if the entirety of the project is located within a Transit Priority Area, is located within a low VMT-generating area, or if it is a local serving retail project less than 50,000 square feet. Projects not screened through the steps above should complete a VMT Analysis and forecasting through the Orange County Transportation Analysis Model if they have a significant VMT impact.

The VMT Analysis for the Project concluded that the Project would screen out as it is within a low VMT-generating area. Therefore, in accordance with the City of Fountain Valley’s guidelines, the proposed Project is exempt from the preparation of any further VMT analysis and is presumed to have a less than significant CEQArelated transportation impact.

Additionally, the Traffic Impact Analysis addressed the potential circulation needs associated with the Project by studying ten (10) key intersections around the Project and analyzed the level of service at each intersection. The minimum acceptable LOS is LOS D. The TIA found that all of the studied intersections for the opening year plus Project scenario would meet the minimum acceptable level of service except for Newhope Street and Warner Avenue, which would operate at a LOS E during the PM peak hour. This intersection currently operates a LOS E, therefore no change to the LOS would occur at the intersection. Also, a Traffic Signal Warrant Analysis was prepared but found that no unsignalized intersections warranted a traffic signal.

The TIA also analyzed traffic generation through vehicle trip ends, defined as oneway vehicular movements, either entering or exiting the generating land use. The trip generation forecast for the proposed Project totals 3,228 daily trips, with 236 trips (65 inbound, 171 outbound) during the AM peak hour and 264 trips (155 inbound, 109 outbound) during the PM peak hour.
c. Provide a desirable environment for its occupants and visiting public as well as its neighbors through good/proper aesthetic use of materials, texture and color, and would remain aesthetically appealing and retain an appropriate level of maintenance.

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As depicted in the plans attached to the Staff Report, the site features different architectural styles within each area of the Project. The Market Rate and senior Apartments would feature a contemporary architectural design with stucco walls, horizontal siding, vertical metal panels, metal awnings, balconies or patios, and black vinyl windows. The Townhomes would feature a similar architecture to the apartments with stucco walls, horizontal siding, painted meal balcony railings, and vinyl windows and doors. The Triplex units, located adjacent to the single-family homes to the north and east, would provide a transitional modern and coastal modern style architecture to provide a buffer between the rest of the Project and the single-family homes to the north and east. The Transitional Modern Style would feature predominately stucco walls, tight roof eaves, recessed windows, metal trellis porch elements, and panel style garage doors. The Coastal Modern Style would feature stucco and horizontal siding, 12” roof eaves, trimmed windows, traditional covered porches, and linear style garage doors.

The Project would feature three individually programmed courtyards for the use of the Market Rate Apartments including a pool oasis courtyard, a game courtyard, and an entertainment courtyard. Outdoor amenities include a pool, spa, outdoor bbq’s, outdoor seating, game lawn, ping pong and pool tables, lounge seating, a projection screen, movie/yoga lawn, outdoor kitchen, and dining tables. The Senior Affordable Apartments would feature an outdoor community courtyard space with amenities for the residents including lounge seating, outdoor bbq’s, dining tables with umbrellas, and landscaping. The Townhomes and Triplex units would include a pocket park with a play structure and play surfacing and a community pool area with a spa, cabanas, lounge seating, restrooms and shower area, covered dining and seating, and outdoor grills.

The Project’s landscaping features a variety of specimen trees, palms, hedges, grasses, and groundcover throughout the site. These elements provide shade along sidewalks and surface parking areas within the development. Per FVMC

21.20.040(d)(2)(C), parking lots with more than one hundred spaces shall provide a concentration of landscape elements at primary entrances, including specimen trees, flowering plants, enhanced paving, and project identification and specimen trees shall be a minimum of a thirty-six-inch box variety at planting. Each entrance (three along Heil Avenue and one along Euclid Street) is enhanced with specimen trees, flowering plants, and enhanced paving. Enhanced paving is also provided at two additional interior locations north of the main entrance to the Townhome/Triplex portion of the Project along Heil Avenue. Together, these design and landscaping elements create an attractive and welcoming environment for residents and visitors.

2. The architectural design of the proposed structure(s) would be compatible with the character of the surrounding neighborhood and would maintain and enhance the attractive, harmonious, and orderly development contemplated by the actions, goals, objectives, and policies of the general plan, any applicable specific plan, and this chapter.

The architectural design of the proposed structures would be compatible with the character of the surrounding neighborhood and would maintain and enhance the

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attractive, harmonious, and orderly development contemplated by the actions, goals, objectives, and policies of the general plan and the municipal code. As depicted in the plans attached to the Staff Report, the site features different architectural styles within different areas of the Project. The Market Rate and senior Apartments would feature a contemporary architectural design with stucco walls, horizontal siding, vertical metal panels, metal awnings, balconies or patios, and black vinyl windows. The Townhomes would feature a similar architecture to the apartments with stucco walls, horizontal siding, painted meal balcony railings, and vinyl windows and doors. The Triplex units, located adjacent to the single-family homes to the north and east, would provide a transitional modern and coastal modern style architecture to provide a buffer between the rest of the Project and the single-family homes to the north and east. The Transitional Modern Style would feature predominately stucco walls, tight roof eaves, recessed windows, metal trellis porch elements, and panel style garage doors. The Coastal Modern Style would feature stucco and horizontal siding, 12” roof eaves, trimmed windows, traditional covered porches, and linear style garage doors.

Per General Plan Policy LU-1.1: land use compatibility and viability, the buildings and plots have been designed to serve as a transition between the surrounding singlefamily residential neighborhood and new multi-family residential community. The triplex structures located along the north and east borders of the Project area are 2- stories, 27-feet 2 inches in height with hip roofs which is similar to the roof style of the adjacent single-family neighborhood. The second-floor rear elevations have limited windows with no balconies. The backyards would provide a 25-foot rear setback which is the same minimum rear yard setback requirement of the surrounding R1 SingleFamily zone. Additionally, the 3-story townhomes would be setback a minimum 100 feet from the single-family residential neighborhoods to the north, east, and south (across Heil Avenue). Lastly, the multi-family apartments (Market Rate and Senior Affordable buildings) would be situated at the corner of Euclid Street and Heil Avenue, furthest away from the existing single-family residential neighborhood to the north and east.

3. The proposed development would not:
a. Be detrimental to the public convenience, health, interest, safety, or welfare, or materially injurious to the properties or improvements in the immediate vicinity.

The proposed development would not be detrimental to the public convenience, health, interest, safety, or welfare, or materially injurious to the properties or improvements in the immediate vicinity. The proposed development enhances public convenience by providing 606 new housing units without displacing existing residents. The Project’s construction of new residential units would improve the affordability of the City’s housing stock by increasing the supply of rental housing, which is of interest to the City and rent-burdened residents. Of these units, 82 would be offered at 80% AMI, contributing to the City’s housing goals while integrating harmoniously with the surrounding area. Additionally, the Project’s location being within walking distance from nearby public transportation, and immediate proximity to Mile Square Park, further has the opportunity to improve convenience and connectivity for both residents and visitors. The influx of new residents would boost commercial activity, reducing vacancies and increasing

Resolution No. 25-11

patronage for local businesses. By contributing to a stronger local economy and improved public infrastructure, the development would positively affect the public health, safety, and welfare, fostering a more connected and vibrant community.

The Project was also analyzed using the City’s Transportation Impact Assessment Guidelines to outline the specific steps for conducting an analysis using the VMT methodology and how to address the applicable general plan consistency requirements. Per the guidelines, a project can be screened from providing a project level assessment and found to have a less than significant impact if the entirety of the project is located within a Transit Priority Area, is located within a low VMT-generating area, or if it is a local serving retail project less than 50,000 square feet. Projects not screened through the steps above should complete a VMT Analysis and forecasting through the Orange County Transportation Analysis Model if they have a significant VMT impact.

The VMT Analysis for the Project concluded that the Project would screen out as it is within a low VMT-generating area. Therefore, in accordance with the City of Fountain Valley’s guidelines, the proposed Project is exempt from the preparation of any further VMT analysis and is presumed to have a less than significant CEQArelated transportation impact.

Additionally, the Traffic Impact Analysis addressed the potential circulation needs associated with the Project by studying ten (10) key intersections around the Project and analyzed the level of service at each intersection. The minimum acceptable LOS is LOS D. The TIA found that all of the studied intersections for the opening year plus Project scenario would meet the minimum acceptable level of service except for Newhope Street and Warner Avenue, which would operate at a LOS E during the PM peak hour. This intersection currently operates a LOS E, therefore no change to the LOS would occur at the intersection. Also, a Traffic Signal Warrant Analysis was prepared but found that no unsignalized intersections warranted a traffic signal.

The TIA also analyzed traffic generation through vehicle trip ends, defined as oneway vehicular movements, either entering or exiting the generating land use. The trip generation forecast for the proposed Project totals 3,228 daily trips, with 236 trips (65 inbound, 171 outbound) during the AM peak hour and 264 trips (155 inbound, 109 outbound) during the PM peak hour.
b. Substantially depreciate property values in the immediate vicinity or interfere with the use or enjoyment of property in the surrounding neighborhood, because of excessive dissimilarity or inappropriateness of design in relation to the surrounding neighborhood.

The proposed development would not substantially depreciate property values in the immediate vicinity or interfere with the use or enjoyment of property in the surrounding neighborhood, because of excessive dissimilarity or inappropriateness of design in relation to the surrounding neighborhood. The proposed scaling of the Project would locate the most dense and tallest uses furthest away from the single-family homes to the north and east of the Project.

Resolution No. 25-11

Additionally, all buildings 3 stories or taller would be located a minimum 100 feet from single-family homes to the north, east, and south of the Project. Lastly, the 2- story triplex buildings located along the north and east border of the Project would be in line with the overall scale and character of the existing detached single-family homes. The 2-story triplexes are a similar height as the adjacent single-family homes and provide a similar 25-foot rear yard/buffer.

4. 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.

As contained in Resolution 25-10, and noted above in Section 2, an Addendum to the General Plan FEIR was prepared. Through the Addendum, it was determined that no new or substantially more severe significant impacts would occur as a result of the proposed changes. None of the conditions described in CEQA Guidelines Section 15162 requiring the preparation of a subsequent EIR or CEQA Guidelines Section 15163 requiring preparation of a supplemental EIR have occurred. This Addendum to the adopted EIR is an appropriate level of environmental review for the project revisions, as identified in CEQA Guidelines Section 15164.

SECTION 5
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 respective zoning district with the approval of a conditional use permit and complies with all other applicable provisions of this title and this code.

The proposed use of multi-family dwellings is an allowed use in the R4 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.

As noted above in Section 4, Finding 1, the proposed use would be compatible with the actions, goals, objectives, and policies of the general plan. The use does not fall within any specific plans in the City of Fountain Valley. Specifically, the use would comply with: Land Use Element Goal LU-1 and Policies LU-1.1, 1.2, 1.3, and 1.6; Land Use Element Goal LU2 and Polices LU-2.1 and 2.2; Land Use Goal LU-3 and Policies LU-3.2 and 3.5; Mobility Element Goal CM-1 and Policy CM-1.1; Mobility Element CM-2 and Policy CM-2.5, 2.6, and

2.7; Housing Element Goal H-1 and Policies H-1.1 and 1.2; Housing Element Goal H-2 and Policies H-2.1 and 2.3; and Public Facilities and Safety Element Goal PFS-1 and Polices PFS-1.2, 1.4, and 1.5.

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.

Resolution No. 25-11

The design, location, shape, size, and operating characteristics of the multifamily dwellings would be compatible with the existing and future land uses in the city. The site is identified in the Housing Element as an opportunity site to meet the City’s Regional Housing Needs Assessment (RHNA) allocation of 4,839 units. The Housing Element identifies the Site as an underutilized site in “Figure H-1 Housing Sites Inventory” and “Table H-22 Housing Sites Inventory” with 411 total potential units. Footnote 6d in Table H-22 notes that through Program 1c, the City would adopt an inclusionary housing ordinance in early 2023. As a result, a number of sites would likely seek additional units through state density bonus provisions. While the totals shown in the table, and assumed for the purposes of accommodating the RHNA, exclude the application of a density bonus, the total capacity would be increased with the inclusion of a density bonus. Additionally, the was rezoned to R4 – High Density Multiple Dwelling in December 2023.

Operationally, the project would screen out as it is within a low VMT-generating area.

Therefore, in accordance with the City of Fountain Valley’s guidelines, the proposed Project is exempt from the preparation of any further VMT analysis and is presumed to have a less than significant CEQA-related transportation impact.

Additionally, the Traffic Impact Analysis addressed the potential circulation needs associated with the Project by studying ten (10) key intersections around the Project and analyzed the level of service at each intersection. The minimum acceptable LOS is LOS D. The TIA found that all of the studied intersections for the opening year plus Project scenario would meet the minimum acceptable level of service except for Newhope Street and Warner Avenue, which would operate at a LOS E during the PM peak hour. This intersection currently operates a LOS E, therefore no change to the LOS would occur at the intersection. Also, a Traffic Signal Warrant Analysis was prepared but found that no unsignalized intersections warranted a traffic signal.

As the Project’s density and height is proposed to scale down as it approaches the adjacent single-family homes to the north and east, the Project would be compatible with the existing and future land uses in the vicinity.

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 subject site is physically suitable for the type and intensity of use being proposed. The Project would comply with public access, facilities, and utility requirements and is compatible with adjoining land uses. Sufficient vehicular and pedestrian access would be provided from both Euclid Street and Heil Avenue. Sufficient facilities and utilities such as drainage, fire protection, sewers, and water utilities would be provided to the uses within the Project.

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.

As discussed in Section 4, Finding 3.a., the uses proposed within the Project would not be detrimental to the public convenience, health, interest, safety, or welfare, or injurious to

Resolution No. 25-11

persons, property, or improvements in the vicinity and zoning district in which the property is located.

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.

As discussed in Section 2 above, the proposed Project has been reviewed in compliance wti the provisions of CEQA and the City’s Environmental Review Procedures. An Addendum to the FEIR (Exhibit 1 of Resolution No. 25-0811) has been prepared to identify whether the proposed revisions would result in any new significant impacts beyond those identified in the General Plan FEIR (CEQA Guidelines Section 15162). The Planning Commission, as the Lead Agency, arrived at its independent judgement and found that on the basis of the Addendum and any comments received that there is no substantial evidence that the Project would have a significant adverse impact on the environment provided that the mitigation measures identified in the environmental document are incorporated into the Project.

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 6
Findings and Supporting Facts: - The Planning Commission finds that the subject application meets the criteria for a Tentative Parcel Map found in Chapter 21.70 of the Fountain Valley Municipal Code as follows:

1. Required Findings for Approval. The review authority may approve a tentative map only when it shall first find that the proposed subdivision, together with the provisions for its design and improvement, is consistent with the general plan, and any applicable specific plan, and that none of the findings for denial in subsection (3) [(FVMC

21.70.070(3)] of this section can be made. The findings shall apply to each proposed parcel as well as the entire subdivision, including any parcel identified as a designated remainder in compliance with Map Act Section 66424.6.

As noted above in Section 4, Finding 1, the Project is consistent with the general plan.

Additionally, each parcel as well as the entire subdivision, shall meet the minimum required lot size in FVMC 21.08.040 Table 2-3 of 10,000 square feet. Lastly, none of the findings for denial in FVMC 21.70.070(3) can be made. The proposed subdivision including design and improvements would be consistent with the general plan. The proposed density and layout of the Project, as well as improvements made to the widening of Heil Avenue and a new bicycle lane and sidewalk would be consistent with the general plan. With the proposed density bonus, the site would be physically suitable for the type of proposed density that is in conformance with the R4 – High Density Multiple Dwelling zone. As noted in the Addendum to the General Plan EIR, the Biological Resources Assessment identified that the project site does not provide suitable habitat for any of the special-status plant and wildlife species (those listed as endangered or threatened under the Federal Endangered Species Act or California Endangered Species Act) and no special-status plant communities were observed

Resolution No. 25-11

onsite. Additionally, the project site is not located within a federally designated Critical Habitat and the closest Critical Habitat is approximately 5.6 miles south of the project site. The design of the subdivision and improvements would not be likely to cause serious public health or safety problems as all nearby intersections would continue to operate a LOS D or higher, except for one intersection (Newhope Street and Warner Avenue) that would operate at a LOS E during the PM peak hour. The drop at this intersection but would be considered less than significant as the Project only increases the volume to capacity ratio by 0.009 (less than 1%) from the pre-project condition.

City guidelines note that if the volume to capacity ratio change at an intersection is less than 3%, the change is considered less than significant. The design of the subdivision would not conflict with any easements as there are not public easements on the Property. The discharge of sewage from the proposed subdivision into the community sewer system would not exceed the projected future capacity of the City’s wastewater infrastructure. A preliminary soils report or geological hazard report indicates there would be no impacts with respect to unstable soils. The proposed subdivision would be consistent with all applicable provisions of this title and any other applicable provisions of this code and the Subdivision Map Act.

2. Supplemental Findings. In addition to the findings required for approval of a tentative map by subsection (1) of this section, the review authority shall not approve a tentative map unless it can also make the following findings, when they are applicable to the specific subdivision proposal.
(A) Construction of Improvements. It is in the interest of the public health and safety, and it is necessary as a prerequisite to the orderly development of the surrounding area, to require the construction of road improvements within a specified time after recordation of the parcel map, where road improvements are required.

Per the conditions of approval of the Project, the applicant must construct fire department access roads throughout the development prior to the start of combustible construction. The Roads must be installed to Fire Department and Public Works standards.
(B) Condominiums. Any applicable findings required by Section 21.74.030 of this title for condominium conversions.

The Project does not include any condominium conversions. (C) Dedications or Exactions. Any applicable findings required by Section

21.78.030 (Findings required for dedications or exactions) of this title, if dedications or exactions are required.

The Project would dedicate 0.55 acres of the southern portion of the site to the city for the expansion of Heil Avenue’s public right-of-way to include street and sidewalk improvements along the north side of Heil Avenue. This is necessary to align with the Mobility Element of the General Plan for Heil Avenue. The Project would also be paying a median beautification fee and

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Park Facilities fee per the approved City of Fountain Valley Municipal Code Fee Schedule.
(D) Waiver of Parcel Map. The findings required by Section 21.72.030 (Waiver of parcel map) of this title, if waiver of a parcel map has been requested with the tentative map application.

A waiver of parcel map has not been requested and is not applicable to the Project.

SECTION 7
The Planning Commission hereby approves Precise Plan No. 579, Conditional Use Permit No. 1930, and Tentative Parcel Map No. 2024-103 submitted by EPD Solutions, on behalf of Euclid & Heil FV Owner, LLC, to construct a residential community to consist of 304 for-rent market rate apartments, 83 for-rent senior affordable apartments (82 affordable units and 1 manager unit), 183 for-sale townhomes, and 36 for-sale triplexes totaling 606 units on the

18.09-acre lot located at 16300 Euclid Street (northeast corner of Euclid Street and Heil Avenue subject to the Conditions of Approval, attached as Exhibit 1, to this Resolution.

PASSED, APPROVED AND ADOPTED THIS 25TH DAY OF JUNE, 2025 ______________________________ ______________________________ 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

21.44, 21.36, AND 21.70 OF THE FOUNTAIN VALLEY MUNICIPAL CODE.

BY SIGNING THIS RESOLUTION, THE APPLICANT ACKNOWLEDGES ACCEPTANCE OF

THE BENEFITS OF THE PRECISE PLAN, CONDITIONAL USE PERMIT, AND TENTATIVE

MAP AND AGREES TO WAIVE ANY RIGHT TO LATER CHALLENGE ANY CONDITION(S) IMPOSED AS UNFAIR, UNNECESSARY, OR UNREASONABLE.
/
Date Applicant Sign/Print
ATTACHED: “EXHIBIT A”
“EXHIBIT 1”

Resolution No. 25-11

Exhibit A

LEGAL DESCRIPTION OF THE SITE
A.P.N.: 144-111-01
Real property in the City of Fountain Valley, County of Orange, State of California, described as follows:

THE SOUTH HALF OF THE SOUWEST QUARTER OF THE NORWEST QUARTER OF SECTION 21, TOWNSHIP 5 SOUTH, RANGE 10 WEST, IN THE RANCHO LAS BOLSAS,

CITY OF FOUNTAIN VALELY, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS SAID SECTION IS SHOWN ON A MAP RECORDED IN BOOK 51, PAGE 12 OF

MISCELLANEOUS MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.

EXHIBIT 1

CONDITIONS OF APPROVAL
Precise Plan No. 579, Conditional Use Permit No. 1930,
Tentative Parcel Map No. 2024-103
Euclid & Heil Residential Project
16300 Euclid Street
Fountain Valley, CA
The following Conditions of Approval [COA] apply to this project. The COAs are specific conditions applicable to the proposed project. The developer/project applicant 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

1. The site plan, elevation plans, floor plan, landscape plans, etc. dated received May 15, 2025 and approved by the Planning Commission on June 25, 2025, (Attachment #2 to the staff report for this project) shall be made part of this application approval and cannot be modified without prior approval by either the Planning Commission or the Community Development Director.

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

3. The property owner shall install signage near the trash dumpster prohibiting trash dumping during the hours of 10:00 p.m. – 7:00 a.m. compliant with FVMC 6.28.050.

Said signage shall be installed prior to certificate of occupancy of the building.

4. To prevent scavenging, illegal dumping, and to contribute to the general cleanliness of the proposed Project, the Project shall provide a refuse containment area with a screened and securable gate. Also, exterior signage shall be provided outside of the trash enclosure prohibiting the scavenging of any material from the trash dumpster.

The refuse containment area depicted on the Precise Plan shall be installed prior to the issuance of a C of O and any screening, gate, or signage for that area shall be included in the applicant’s plan check submittal to the City.

5. To maintain the cleanliness of the property, the developer and/or property manager shall be responsible for maintaining the area adjacent to their premises over which they have control free of litter.

6. This resolution supersedes previously approved Conditional Use Permit and Precise Plan Resolutions for the address at 16300 Euclid Street.

7. The colors, materials and facades of the building shall be as approved by the Planning

Precise Plan No. 579, Conditional Use Permit No. 1930, Tentative Parcel Map 2024-103 Conditions of Approval

Commission. No changes to the colors or materials shall occur without approval by the Community Development Director. Changes that the Community Development Director deems to vary significantly from the originally approved design shall be forwarded to the Planning Commission for its review and determination.

8. All vents, gutters, downspouts, flashings, electrical conduits, etc. shall be concealed within the multi-family and senior for rent product buildings except for downspouts and gutters that shall be allowed on the north and east sides of the multi-family and senior for rent product buildings only.

9. Lighting shall be scheduled to direct the light downward away from adjacent properties around the Project, including residential and open space properties. If needed, light shielding may be installed to prevent light spillage onto adjacent properties. No additional exterior lighting is to be added unless a photometric study concludes the added lighting will have zero lighting shed impact on adjacent properties.

10. The applicant shall provide signing on the trash enclosure prohibiting the salvage of any material from the trash dumpsters.

11. 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.

12. Street and unit numbers are to be maintained in such a manner as to be plainly visible, 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. All numbers shall not be less than 5 in. in height and 2 in. in stroke and be of contrasting color from the background.

13. Blind corners in the parking structures of the multi-family and senior for rent product buildings of this project shall be provided with viewing mirrors maintained in a position and condition to provide adequate sight distance.

14. The final location of parking structure support columns shall be subject to the review and approval of the Community Development Director. The goal for placement shall be to provide adequate free and clear space for opening of vehicle doors together with keeping columns a buffered distance from the drive aisle. Within this goal, the edge of the parking structure support columns shall ideally be a minimum of two (2) feet and a maximum of four (4) feet from the parking aisle and shall not be located within the area of a parking stall. When the side of any parking stall abuts a building, fence, wall, support column or other obstruction which would interfere in any way with access to a motor vehicle, the width of the stall shall be increased to at least eleven (11) feet.

15. Garages and carports shall provide a minimum overhead clearance of eight feet, with exceptions for specific overhead storage for select parking stalls, subject to the review and approval of the Community Development Director.

16. The interior treatment of a parking structure shall be of a light color. The treatment shall include a coordinated interior sign program designed to identify parking levels and locate stairwells, elevators, phones, exits and other interior features that shall be subject to the review of the Community Development Director and/or Sign Committee.

Precise Plan No. 579, Conditional Use Permit No. 1930, Tentative Parcel Map 2024-103 Conditions of Approval

17. Parking areas shall have lighting capable of providing adequate illumination for security and safety. Lighting standards shall be energy-efficient and in scale with the height and use of the on-site structure(s). All illumination, including security lighting, shall be directed downward, away from adjacent properties and public rights-of-way in compliance with Section 21.18.060 (Exterior lighting).

18. Wheel stops or curbing, if utilized in the parking structure, shall be placed to allow for a maximum of a two-foot vehicle overhang area within the dimension of the parking space. Therefore, with a minimum 19-foot deep parking stall, the measurement to the edge of the wheel stop or curbing from the back of the parking stall shall be 17 feet with a maximum two-foot overhang.

19. The project shall comply with all mitigation measures identified in the Project Specific Addendum to the General Plan EIR.

20. All mitigation measures identified in the Addendum shall be incorporated herein and shall be included as conditions of approval of Precise Plan No. 579.

21. Precise Plan No. 579, Conditional Use Permit No. 1930, and Tentative Parcel Map No. 2024-103 shall be approved and in effect for a period of 24 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 24-month time period, project approval shall expire and be determined void. A one-year extension may be granted at the discretion of the Community Development 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: June 25, 2025
Date of Project Expiration: June 25, 2027

22. The applicant shall provide cable TV and fiber internet facilities to each dwelling within the project area. Exact design of said CATV system shall be subject to review and approval by the Public Works Director.

23. Project approvals shall require that 15% of the units under the site base density of 30 units per acre be developed and operated as affordable housing for households earning less than 80 percent of the County median income. This equates to a total of 82 on-site affordable units for occupancy by extremely low, very low, and low-income households. The applicants intention is to reserve 4% (23 units) of its base units as affordable to extremely low income households earning less than 30 percent of the County median income, 3% (18 units) of its base units as affordable to very low income households earning less than 50 percent of the County median income, and 8% (41 units) of its base units as affordable to low income households earning less than 80% of the County median income for a total of 15% of its base units.

24. The applicant must obtain approval of the Density Bonus and Affordable Housing Agreement from the City prior to issuance of grading permits for the Project.

Precise Plan No. 579, Conditional Use Permit No. 1930, Tentative Parcel Map 2024-103 Conditions of Approval

25. Selection of Tenants of Affordable Units – Applicant shall be responsible for selection of tenants requiring that they meet income eligibility requirements established by the corresponding affordable housing unit.

26. Annual Monitoring – Applicant shall make affordable unit tenant files available to City each year for review. City shall provide a minimum of 24-hour notice to schedule inspection of affordable unit tenant files.

27. Applicant/Developer shall enter into and execute that certain instrument defined in the DBAHA as the City Covenants to evidence the land use of the Site as affordable housing for the 55-year Affordability Period prior to issuance of building permits.

28. This Entitlement requires the Applicant/Developer to cause recordation of certain City Covenants as a senior, non-subordinate encumbrance and lien against the Site to ensure the Project and Site ownership, use, operation, maintenance, and property management remain subject thereto for the entire Affordability Period to provide affordable rental housing available to Low Income Households and at Affordable Rent at the Prescribed Rent Levels as such terms are defined therein.

29. The City Covenants shall be recorded, prior to and as a condition precedent to the issuance of building permits for the Project, in the Official Records, Orange County, California as senior, unsubordinated covenants and an encumbrance running with the land for the full Affordability Period. In no event shall the City Covenants be made junior or subordinate to any deed of trust or other documents providing financing for the construction or operation of the Project on the Site or ownership of the Site, or any other lien or encumbrance whatsoever against the Site for the Affordability Period, except as expressly mandated by California statute or federal law.

30. The City Covenants shall include provisions that run with the land so as to restrict, condition, and covenant the Site and Project as affordable housing, including as follows:
a. Number of Affordable Units. Throughout the Affordability Period each and all Eighty-one (82) Housing Units shall be rented at an Affordable Rent to Low Income Households or lower. It is the applicants intention to reserve twenty three (23) Housing Units for extremely low households, eighteen (18) Housing Units for very low households, and forty-one (41) Housing Units for low income households. Developer agrees to make available, restrict occupancy to, and rent all of the Housing Units at Affordable Rent in conformity with the Prescribed Rent Level and Tenant Mix.
b. Duration of Affordability Requirements. The Housing Units shall be maintained as rental units available at and rented to Low Income Households throughout the 55-year Affordability Period.
c. Prescribed Rent Levels. The Project shall include:
 Low Income Units: (i) seventy-one (71) 1-bedroom units, (ii) twelve (12) 2- bedroom units.

Precise Plan No. 579, Conditional Use Permit No. 1930, Tentative Parcel Map 2024-103 Conditions of Approval

d. Income of Tenants. Each tenant of a Housing Unit shall be an extremely low, very low, or low-Income Household (as prescribed in accordance with the Prescribed Rent Levels and Tenant Mix) that meets the eligibility requirements established for the corresponding unit mix requirements, and Developer shall obtain a certification from each tenant renting or leasing each Housing Unit that substantiates such fact. Developer shall verify the income certification of each tenant household as set forth herein.
e. Determination of Affordable Rent for the Affordable Housing Units. Each and all Affordable Housing Units shall be rented at an “Affordable Rent” as defined in State law as not more than 30 percent of gross household income with variations per Health and Safety Code Section 50052.5.
f. Event of Foreclosure. Notwithstanding this condition of approval regarding the City Covenants, in the event of (i) foreclosure initiated by the Lender of the Primary Construction Loan or the Primary Permanent Loan and conveyance of the Site and Project to a third party buyer (not an Affiliate of Developer) through a trustee’s sale, or (ii) conveyance by a deed in lieu of foreclosure of the Site and Project to a third party (not an Affiliate of Developer) but only after at least 90 days have elapsed since the filing of the notice of default commencing foreclosure (described in (i)) and the Lender (or its agent) has caused to be recorded a notice of trustee's sale setting forth the date, time, and place of the trustee's sale, then commencing after recordation of the trustee’s deed or deed in lieu of foreclosure described in (i) or (ii) above and continuing for the remainder of the 55-year Affordability Period the new owner of the Site and Project, also as “Developer”, shall ensure the Project is operated under the following agreed upon Prescribed Rent Levels:
 Low Income Units: (i) seventy-one (71) 1-bedroom units, (ii) twelve (12) 2- bedroom units.
g. Developer Verification and Compliance. Developer will obtain and maintain on file an Income Verification from each tenant for each Housing Unit dated immediately prior to the initial occupancy of such tenant in the Project. Each Year Developer shall file with the City, or their designee, a Certificate, containing all information required to demonstrate that rents and income levels for the Housing units comply with the requirements hereof regarding Affordable Rent and containing such information as City additionally requires, in a form prescribed by the City. Each Certificate shall cover the immediately preceding fiscal year and shall be submitted by June 15th of the following year. h. Form of City Covenants. The City Covenants shall be in the form attached as Attachment 1 to the DBAHA, with minor, non-substantive revisions subject to the review and approval of the City Manager, City’s Community Development Director and City legal counsel or special counsel.

31. The Applicant has proposed a request for Density Bonus to increase the density from that outlined in Fountain Valley Municipal Code 21.08.040 for the R4 zone of 30 du/ac to 33.5 du/ac. The Density Bonus requires subsequent approval of an Affordable

Precise Plan No. 579, Conditional Use Permit No. 1930, Tentative Parcel Map 2024-103 Conditions of Approval

Housing Agreement (“DBAHA”) and states the applicants’ intention to reserve 4% (23 units) of its base units as affordable to extremely low income households earning less than 30 percent of the County median income, 3% (18 units) of its base units as affordable to very low income households earning less than 50 percent of the County median income, and 8% (41 units) of its base units as affordable to low income households earning less than 80% of the County median income for a total of 15% of its base units. This equates to a total of 82 on-site affordable units for occupancy by extremely low, very low, and low income households. By providing 15 percent of its base units as affordable, the Project will exercise an 11.7 percent (i.e., 64 unit) density bonus option pursuant to State Density Bonus Law consistent with Government Code Sections 65915-65918. Although State Density Bonus Law allows for a 27.5% density bonus (149 unit density bonus), the Applicant has elected to construct only 64 density bonus units for a density bonus of 11.7 percent. Pursuant to California Density Bonus law and the implementing ordinance in the Fountain Valley Municipal Code (FVMC) Chapter 21.08.050(a), owners of residential projects that include certain levels of affordable housing are entitled to receive a density bonus and additional incentives in order to facilitate the economic feasibility of those projects. State Density Bonus Law allows one concession and unlimited waivers for the type of development proposed in which a certain number of the “base” units are restricted for low-income households.

The applicant has proposed, and the Planning Commission has acknowledged the following Concession and Waivers subject to the City Council’s approval of an Affordable Housing Agreement:

The applicant is requesting reductions and waivers from certain development standards under the Fountain Valley Municipal Code (“FVMC”) for the Project in accordance with California Density Bonus Law (Gov. Code, §§ 65915, et seq.), in order for the Project to be able to accommodate the residential units, including the affordable housing units, planned for the Project. These reductions and waivers are necessary because, without them, the Project would be physically infeasible to implement and construct due to site constraints and certain City development standards, as described in more detail below. The requested reductions and waivers are submitted pursuant to subdivisions (e) and (o)(2) of Government Code section 65915.
a. Concession #1 – Reduction in private open space requirement of 100 SF per unit of open space and with no dimension less than 10 feet as established in “FVMC

21.08.040 Table 2-3 Residential District General Development Standards" to allow Unit A2 within the senior affordable project to not include a private balcony/patio/deck, 0 to 82 SF private balcony/patio/deck for the senior affordable units with minimum dimensions less than 10 feet, and allow for 42 to 72 SF private balcony/patio/deck for the market rate multi-family units with minimum dimensions less than 10 feet. Application of the municipal code requirement for private open space would make the project financially infeasible:

1. Adding a 100 SF private balcony/patio/deck to Unit A2 or additional SF for a balcony/patio/deck for the senior affordable and market rate apartments would add additional materials and construction costs to the project.

2. Alternatively, reducing the livable SF of the units in order to accommodate the minimum 100 SF private open space requirement

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would reduce the livable square footage of the units which will reduce the per square foot rentable area for the project and make the project financially infeasible.
b. Waiver #1 – An increase from the maximum building height of 35 ft./3 story as stated in “FVMC 21.08.040 Table 2-3 Residential District General Development Standards” to allow for 56 ft. 10 in./5 stories and 67’-5” to the top of the elevator tower for the market rate apartment and 58 ft. 10 in./5 stories for the senior affordable apartment. Application of the code maximum height requirement would make construction of the market rate and affordable housing units physically infeasible within the proposed site footprints; the additional height increase would allow for the necessary additional unit stacks in the building and provide floor plates that can accommodate the increase in density. Therefore, a waiver is required in order to physically construct the units on the site and within the development footprint.
c. Waiver #2 – An increase in building site coverage from a maximum of 40 percent as established in “FVMC 21.08.040 Table 2-3" to allow 41.3 percent total building coverage for the entire site, 71.6 percent lot coverage for the market rate apartment building site, and 77.1 percent lot coverage for the senior affordable project is required. The project would be physically infeasible to construct without this waiver as additional developable area is needed in order to provide for an increase in density and inclusion of affordable housing units. d. Reduction #1 – A decrease in setbacks, as established in code section “FVMC

21.08.040 Table 2-3," to allow a 0 ft. side setback at the senior affordable apartment property line and a 10 ft. rear setback for the senior affordable and market rate apartment site, a 0 ft. side and rear setback for the senior affordable apartment site is required to allow for additional developable areas in order to physical construct the market rate and senior affordable housing units. In order to partner with an affordable housing developer and secure project financing, a separate legal lot is needed. Therefore, where the side and rear setbacks are measured from by code versus the setbacks provided from property lines would make construction of the project physically infeasible based on the lot configurations.
e. Waiver #3 – Increase the maximum number of units for Lot 2 the market rate apartment site and Lot 3 the senior affordable site, from 1 unit per 1,435 SF to allow for 304 units or 3 units per 1,435 SF on Lot 2, and 83 units or 3.6 units per 1,435 SF on Lot 3. The municipal code maximums would physically prevent construction of 304 market rate units and 82 affordable and one manager’s unit on the site and prevent the inclusion of affordable housing units. Additionally, the necessity of this waiver request stems from the increased density permitted pursuant to the State Density Bonus Law by constructing 82 affordable housing units.
f. Reduction #2 – A reduction from FVMC 21.08.040, Table 2-4’s minimum unit size for one-bedroom units of 750 SF, to allow for one bedroom unit ranging from 600- 609 SF for the junior one-bedroom market rate units. Application of the minimum

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one-bedroom unit size per municipal code to the market-rate junior one-bedroom units would make the construction of 304 market-rate units physically infeasible within the proposed site footprint. The smaller junior one-bedroom units are necessary to create additional developable area, allowing for increased density and the inclusion of affordable units. Therefore, a waiver is required to physically accommodate the proposed unit count within the development footprint. g. Reduction #3 – A reduction from FVMC 21.17.060(b)(1) requirement that the affordable units have an average square footage of at least 85% of market rate units within the same housing types with the same bedroom count, to allow for the one and two bedroom affordable housing units to have an average square footage of at least 78% of the market rate two bedroom units. Application of the unit square footage minimum for the two-bedroom affordable housing units would require significantly larger senior unit sizes than is typical for low-income housing tax credit (LIHTC) financed senior housing projects which only require a minimum of 700 SF for two-bedroom units. Increasing the size of the affordable two-bedroom units would reduce the number of affordable units that can be constructed. Additionally, applying the affordable unit square footage minimum would make the construction of 82 affordable units, and one manager’s unit physically infeasible within the proposed site footprint. This would ultimately prevent the inclusion of affordable housing on the site. The smaller two-bedroom units are necessary to create additional developable area, allowing for increased density and the inclusion of affordable units. Therefore, a reduction is required to physically accommodate the proposed unit count within the development footprint.
h. Waiver #4 – A waiver from FVMC 21.17.060(b)(2) requiring that affordable units must be developed within the same housing type to allow the senior affordable units to be developed in a standalone building, rather than within the same housing type as the market-rate units. Application of the requirement that the affordable units be within the same housing type would not be physically feasible due to the project’s design, which includes a separate senior affordable apartment building located on a separate legal lot per the requirements needed for an affordable housing developer to secure project financing. i. Reduction #4 – A reduction from FVMC 21.17.060(b)(2) requiring the same bedroom count ratio as the market rate units. The requirement that the senior affordable apartment needs to have the same bedroom count ratio as the market rate apartment would physically limit the total number of affordable units that could be constructed within the standalone senior affordable apartment building.

Increasing the number of two-bedroom units to provide the same bedroom count ratio as the market rate apartments would physically limit the total number of affordable units that could be developed within the fixed building footprint.

Furthermore, the affordable units are to be marketed to low-income senior residents, reducing the demand for two-bedroom units. Therefore, deviation from the market rate apartment bedroom count ratio is necessary in order to develop the maximum number of affordable units.

32. Per the 2020-2021 Comprehensive Use Fee Schedule (Resolution No. 9778), and the authority provided under FVMC 21.79 and 21.39 the developer shall pay a Park

Precise Plan No. 579, Conditional Use Permit No. 1930, Tentative Parcel Map 2024-103 Conditions of Approval

Facilities Fee in the amount of $8,282 per each multi-family residential unit and $10,377 per each single-family residential unit that is not identified as exempt per FVMC 21.79 due to the fact that it is identified as an affordable residential unit. For the purposes of this fee, 524 of the total 606 units are identified as applicable to the Park Facilities Fee. The Fee is estimated to be $4,339,768.

33. The density proposed under Precise Plan No. 579 shall not exceed that which is approved through the Project. Density shall not exceed 33.5 du/ac.

34. This Precise Plan and Conditional Use Permit are subject to City Council approval of a Density Bonus and Affordable Housing Agreement.

35. 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.

36. 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.

37. 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.

38. 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.

39. The City may exercise all legal remedies available for correction and compliance of any violation of any condition of approval, including administrative citations and prosecution of misdemeanors as may be found appropriate.

40. No satellite dishes greater than 1.1 meters in the residential area and 2.2 meters associated with the commercial area shall be installed on the subject property without approval of the Planning Commission.

41. Applicant shall submit an application for approval of a Sign Program for the Project that shall be subject to review and approval from the City’s Sign Committee.

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

43. Refuse containment areas shall be provided with a screened and securable gate compliant with the Fountain Valley Municipal Code and Rainbow Disposal specs.

44. Complete landscape plans shall be submitted to the Community Development Department. The landscape plans shall comply with the Fountain Valley Water

Precise Plan No. 579, Conditional Use Permit No. 1930, Tentative Parcel Map 2024-103 Conditions of Approval

Efficient Landscape Ordinance.

45. The Community Development 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.

46. Prior to the approval of Precise Grading plans, complete landscape plans shall be submitted to the Public Works and Community Development Department. Landscape plans must be signed by a California licensed Landscape Architect and be consistent with grading plans. The landscape plans shall comply with the Fountain Valley Water Efficient Landscape Ordinance and adopted Guidelines for Implementation of the Water Efficient Landscape Ordinance.

47. The density proposed under Precise Plan No. 579 and Conditional Use Permit No. 1930 shall not exceed that which is approved through the Project. Density shall not exceed 33.5 du/ac over the entire site with 91.8 du/ac for the Market Rate Apartments, 106.4 du/ac for the Senior Affordable Apartments, and 15.6 du/ac for the For-Sale Product.

48. The applicant shall implement a good neighbor program to notify neighbors of Project construction milestones, including demolition / grading / construction start and projected end dates. Notification shall be delivered through a letter from the applicant, sent via USPS, to all neighbors within a 1,000 foot radius around the Project Site. The letter shall be sent at least 1 month prior to any demolition, grading, or construction activity on the site. The letter shall include:
 A main email address for Project questions.
 Contact information for the applicants management company.  Contact information for the Project contractor.
 A phone number to a Project Manager to receive resident questions and complaints during construction.
 A website with up to date construction information and including all of the contact information listed above.

The letter shall be subject to the review and approval of the Community Development Director.

49. The applicant shall post signage visible to the public along Euclid Street and Heil Avenue with the developers contact information and the contractor for the Project. The signage, and its location, shall be subject to review and approval of the Community Development Director and compliant with FVMC 21.24.

50. Any and all complaints regarding construction for the Project to the applicant shall be responded to within 24 hours. The City shall be notified with a call log of all incoming calls noting the name of the person who call (unless anonymous), the phone number, address and reason for call.

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51. The applicant shall designate staging areas for construction equipment onsite located away from the existing single-family residential properties to the north, east, and south to the greatest extent possible. Any staging areas shall be designated on the grading and construction plans that are submitted for building plan check. No construction staging or contractor parking shall be permitted on any residential streets near the Project. Staging areas shall be located at the furthest point away from existing residents as possible.

52. The applicant shall note the location of construction staging areas on demolition, grading, and construction drawings submitted for building plan check.

53. The Project shall comply with South Coast Air Quality Management District’s Rule 403 to reduce the amount of particulate matter entrained in the ambient air as a result of anthropogenic (man-made) fugitive dust sources by requiring actions to prevent, reduce or mitigate fugitive dust emissions.

54. The use of construction equipment utilized for grading shall be limited to 8 hours a day, 5 days a week (or a total of 40 hours per week) and shall be conducted within the days/hours noted in FVMC 6.28.070 of 7:00am – 8:00pm Monday through Friday, 9:00am – 8:00pm on Saturday, and at no time on Sunday or any legal holiday. At no time shall the grading of the site exceed the following (Quantity of Equipment x each equipment’s daily running hours for the following):
• Mass Grading (Rough Grading) - 64 total hours per day • Phase 1 (Fine Grading) - 64 hours per day
• Phase 2 (Fine Grading) - 48 hours per day
• Phase 3 (Fine Grading) - 19 hours per day

55. The use of construction equipment utilized for grading shall be limited to 8 hours a day, 5 days a week (or a total of 40 hours per week) and shall be conducted within the days/hours noted in FVMC 6.28.070 of 7:00am – 8:00pm Monday through Friday, 9:00am – 8:00pm on Saturday, and at no time on Sunday or any legal holiday.

56. All construction activity on the site, other than grading, shall comply with FVMC

6.28.070 and shall be limited to 7:00 a.m. - 8:00 p.m. Monday through Friday, 9:00 a.m. - 8:00 p.m. on Saturday, and at no time on Sunday or any legal holiday. For purposes of this requirement, the use of saws, buffers, sanders, drills, and sprayers shall be included, as shall similar activity.

57. The applicant shall notify residents within 1,000 feet of the project site through mail or flyer, and through the website, days when jackhammering or pile driving will occur.

58. The applicant shall install a green-screen of either mature tall trees or a temporary elevated green screen construction fence along the north and east sides of the property subject to review and approval of the Community Development Director. If mature tall trees are proposed, they shall be installed after grading of each perimeter unit is complete but prior to construction of the perimeter units. If the temporary construction fencing is proposed, it shall be installed after grading of each perimeter

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unit is complete but prior to construction of the perimeter units and the fencing shall be removed prior to certificate of occupancy and replaced with the landscaping outlined on the Landscape Plan.

59. The applicant shall note the location of construction staging areas on demolition, grading, and construction drawings submitted for building plan check.

60. The construction plans shall include a note that the project is required to comply with the provisions of South Coast Air Quality Management District (SCAQMD) Rule 402.

The project shall not discharge from any source whatsoever such quantities of air contaminants or other material which cause injury, detriment, nuisance, or annoyance to any considerable number of persons or to the public, or which endanger the comfort, repose, health or safety of any such persons or the public, or which cause, or have a natural tendency to cause, injury or damage to business or property.

61. The Project shall conform to South Coast AQMD Rule 403 which requires dust control measures to prevent, reduce, or mitigate fugitive dust emissions. Large operations, defined by disturbed surface area or daily earth-moving volume, require notifications and specific control measures. These measures include implementing best available dust control measures (BACM) and notifying the AQMD, according to AQMD guidelines.

62. The construction plans shall include a note that the project is required to comply with the provisions of South Coast Air Quality Management District Rule (SCAQMD) Rule 1113. Only “Low-Volatile Organic Compounds” paints (no more than 50 gram/liter of VOC) and/or High Pressure Low Volume (HPLV) applications shall be used.

63. Based on substantiated complaints, the Community Development Director may require additional measures to reduce pollutant discharge.

64. Per FVMC 6.28.147, No person shall leave standing any motor vehicle, including refrigeration trailers, with engine idling or auxiliary motor running for in excess of ten minutes between the hours of ten p.m. and seven a.m. if the engine or motor noise disturbs the peace or quiet of any residential neighborhood or causes discomfort or annoyance to any reasonable person of normal sensitivity residing in the area. The driver, owner, registered owner and legal owner of the motor vehicle or refrigeration trailer shall each be guilty of the offense described herein.

65. The applicant shall initiate the services of a pest control company prior to grading of the site to alleviate the scattering of rats, gophers, bugs, etc. to adjacent properties.

66. The Apartment Product’s “Move In and Trash Pick Up” loading space shall maintain an open and clear space of no less than 12 feet in width and 25 feet in depth with 14 feet of vertical clearance.

67. The Apartment Product’s “Move In” loading space shall have lighting capable of providing adequate illumination for security and safety. Lighting standards shall be energy-efficient and in scale with the height and use of adjacent structures.

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68. The Apartment Product’s “Move In” loading space shall be identified via signage indicating the use of the loading space is “by appointment only.” The signage shall be verified by the Community Development Department prior to Certificate of Occupancy and shall be permanently maintained by the property owner in a clear and visible manner at all times.

69. No idling of vehicles shall be allowed on-site at, or in, the Apartment Products “Move In” loading area at any time. Vehicles must be turned off immediately after being parked. Per California Air Resources Board (CARB) regulations, all delivery trucks shall not sit idling for more than 5 minutes within 100 feet of a residential property line.

Delivery trucks shall be turned off when loading and unloading. Signage shall be installed near the “Move In” loading area, shall be subject to review and approval by the Community Development Director, and shall be installed prior to certificate of occupancy of the building.

70. Model home lots in the development must be landscaped prior to issuance of certificate of occupancy of each model home.

71. In order to ensure compliance with the provisions of this Resolution and in order to ensure the proper maintenance of the development, Covenants, Conditions, and Restrictions (CC&R’s) shall be submitted to the Planning Department prior to issuance of building permits. The CC&R’s shall be subject to review and approval by the Planning & Building Director and City Attorney. The CC&R’s shall be structured so they can’t be modified or rescinded without City concurrence. The CC&R’s shall be recorded and a copy of the recorded CC&R’s shall be provided to the Planning Department.

72. Development Standards for each triplex units shall consist of the following:
a. Minimum front, side, and rear setbacks – As approved per the plans approved by the Planning Commission on 6/25/25.
b. Maximum ratio of 2nd story to 1st story – As approved per the plans approved by the Planning Commission on 6/25/25.
c. Balconies and decks – As approved per the plans approved by the Planning Commission on 6/25/25. Future balconies and decks shall not be permitted. d. Building additions – Shall be subject to a maximum 55% lot coverage per each property unless exempt per accessory dwelling unit regulations. e. Setbacks for accessory residential uses and structures, such as a garage, gazebo, greenhouse, patio cover, storage shed, workshop or similar accessory structure (more than 120 square feet), swimming pool, spa, fish pond, permanently installed outdoor play equipment, air conditioning equipment, and pool and spa equipment shall be subject to the same requirements as those of the R1 or “Single-Family Homes” in FVMC 21.08.
f. Setbacks for barbecue’s, fireplaces, and fire pits and similar accessory structures – Barbeques, fireplaces, and fire pits less than 6 feet tall shall be allowed in the side and rear yards up to the side and/or rear property lines. Any portion of the barbeque, fireplace, and fire pit structure that exceeds the height of the block wall, by any amount, shall be setback 5 feet from the adjacent property lines. The standard height for side and rear yard walls and fences is 6 feet as measured from the ground level.

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73. The subterranean parking level walls of the apartment parking structure shall be open and visible from the adjacent grade level so its clear that the subterranean parking level is a dead-end subterranean level. Signage shall be posted both at the grade level and subterranean level noting the dead-end. All signage content, and signage posting locations, shall be subject to the review and approval of the Community Development Director.

74. Applicant shall provide 63 parking spaces for the Affordable Senior Apartment portion of the project within the parking structure divided between 30 stalls on the Affordable Senior Apartment Parcel and 33 stalls within the Market Rate Apartment Parcel (labeled as “Affordable Stalls” and “RSVD”) with no parking or vehicular pedestrian access restrictions between the two parcels. This equates to a parking ratio for the Affordable Senior Apartments of 0.75 parking stalls per unit. Also, the applicant's affordable housing developer and property manager, affordable developer/operator, will coordinate rideshare transit options for senior apartment residents through its internal residential services nonprofit, Hope Through Housing Foundation (HTHF) or similar nonprofit. HTHF onsite resident services staff will assist residents with any coordination needed to utilize nearby, eligible, and available City services, such as the HOP ON Senior Mobility Program which provides curb-to-curb service on demand from 8:00am-7:00pm., seven days a week, excluding holidays, for seniors. If after one year after the certificate of occupancy of both the Affordable Senior Apartment Project and Market Rate Apartment Project, the parking designated for the Senior Affordable Units is not being utilized, the applicant may apply to the Community Development Director to share unused Affordable Senior Apartment parking stalls with the uses in the Market Rate Apartments.

75. All balconies shall be kept clear of any balcony enclosures, clothes, towels, coverings, etc along the balcony railing and any accessory uses such as bbq’s, grills, umbrellas, etc. subject to the review and approval of the Community Development Director.

76. Any applicable School District and Sanitation District Fees shall be paid prior to building permit issuance.

77. Backflows, transformers, and other above ground utility equipment must be screened from public view with walls and/or planters.

78. All rooftop equipment shall be screened from public view per FVMC 21.18.080. All roof-mounted mechanical equipment (air conditioning, heating, ventilation ducts, exhaust, etc.) shall be screened from the view of adjacent properties and rights-ofway as specifically approved by the Community Development Director. Roof treatment shall be common to the building and extended to all four (4) building elevations.

79. Any phasing of the development shall be subject to review and approval by the Community Development Director.

80. The character and administration of the project shall be consistent with the Project Description letter (Attachment #1 to the staff report for this project).

81. The applicant will ensure that the trash pickup and residential loading times will offset

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to allow for the shared space. Signage shall be required at the residential loading space depicting allowed hours for residential loading that offset trash pickup hours.

The signage shall be subject to review and approval of the Community Development Director.

82. All entrances and exits to all driveways and parking structures shall be designed to allow for adequate line-of-sight to streets and drive-aisles per the corner cutback requirements of FVMC 21.18.040.

83. The conditions herein contained shall run with the land 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 and entitlement.

Building Department

84. 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.

85. 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.

Public Works Department

86. All costs, development, and construction associated to the following conditions shall be borne by the Developer.

87. Grant no easement over any portion of this improvement between the time of approval of the tentative improvement and the time of final approval of the improvement, except as required by the City Engineer.

88. The subdivider shall defend, indemnify and hold harmless the City or its agents, officers and employees from any claim, action or proceeding against the City or its agents, officers or employees to attack, set aside, void or annul an approval of the City or Planning Commission concerning a subdivision, which action is brought within the time period provided for in Government Code Section 66499.37. City shall promptly notify the subdivision of any claim, action or proceeding brought and will cooperate fully in the defense.

89. As required by Fountain Valley Municipal Code 21.80.040, developer shall submit a subdivision on a form provided by the City Engineer and approved by the City Attorney.

The Subdivision agreement shall include, but shall not be limited to:
a. Description of improvements.
b. Time limit of construction.
c. Completion by City
d. Surety requirements.
e. Phased construction.
f. Time extensions.
g. Progress payments or partial release.

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90. All public improvements, including but not limited to, streets, sewer, water, storm drain, traffic systems, traffic control, and street repairs shall be constructed in accordance with the most recent edition of the City of Fountain Valley Public Works Standard plans.

91. Provide improvement plans as prepared by a Registered Civil Engineer for all improvements. The plans shall be 24 in. by 36 in. mylar with an appropriate engineering scale (1”=10’, 1”=20’, 1"=40'). The plans shall include, but not be limited to, paving, sidewalk, curb, gutter, street lighting and all underground utilities.

Underground utilities shall include, but not be limited to: electrical, communications, street lighting, gas, sewer, water and appropriate storm drain facilities. The design, layout and location of the gas, electrical, communications and street lighting shall be in accordance with the requirements of the respective utility company.

92. The developer shall provide complete "as-built" plans on 24"x36" of the appropriate scale mylar and electronic format AutoCad, latest version, in accordance with City standards prior to Public Works approval to release utilities and certificate of occupancy.

93. Prior to securing permits, complete landscaping plans prepared and signed by a California licensed landscape architect shall be approved by the Public Works and Planning Directors. The plans shall be on 24”x36” mylar with a scale to be consistent with the site plans.
a. Prior to the issuance of the Certificate of Occupancy, developer shall provide a certificate of substantial completion signed and sealed by the licensed landscape architect of record confirming the landscaping and irrigation system have been installed per approved plans.

94. Without credit, provide for street improvements including, but not limited to, curbs, gutters, street paving, traffic control devices, ADA accessible driveway approaches, ADA curb ramps, and sidewalks within the public right-of-way.

95. Provide street lighting facilities as recommended by the City Engineer and in accordance with City standards.

96. Dedicate right-of-way for street purposes as follows:
a. Dedicate 20 feet and fully improve street right-of-way to 40 feet from centerline of Heil Avenue for the full frontage of the proposed development.

97. All public streets shall have a structural section in accordance with the approved soil report, City standards and to the satisfaction of the City Engineer.

98. Furnish a comprehensive sewer study to determine the capacity of the existing sewer line in Euclid Street and the required line sizing for this site development.

99. Provide sanitary sewer facilities as required with the City's Sewer Master Plan and to the satisfaction of the City Engineer.

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100. Construct a minimum 8 in. waterline loop on an alignment to the satisfaction of the City Engineer. Fire hydrants shall be provided and located to the satisfaction of the City Engineer and Fire Marshal.
101. Dedicate a 15 ft. waterline easement to the City of Fountain Valley for the full length of all public waterline facilities located within private property. 102. Install a reduced pressure principle device on the domestic water supply line to the buildings as required by the City Engineer.
103. Install approved backflow devices for irrigation systems as required by the City Engineer.
104. When building is required to be fire sprinklered, the developer shall install a double check detector check valve assembly as required by the Fire Marshal and City Engineer.
105. If there are any changes to the approved site plan that, in the opinion of the City Engineer, may affect onsite/offsite circulation, stacking, access, or other traffic elements, a new traffic study shall be completed. The new traffic study shall be prepared by a Registered Traffic Engineer, showing trip generation for the new development and the impact on the adjacent arterial highways created by this development in conjunction with the existing developments. This report shall include the recommended traffic mitigation measures. The study shall include queuing analysis and onsite/offsite vehicle circulation analysis and VMT Analysis. This study shall also analyze the proposed points of entry and any indicative stacking effects thereof. Lastly, the study shall assess deceleration on NB Euclid Street for Vehicles entering through Driveway No. 2 (NB Euclid Street Driveway) with the intent to design the appropriate driveway entrance accordingly. The new traffic study shall be subject to the satisfaction of the City Engineer.
106. All vehicular access shall conform to the City of Fountain Valley standard plans and specifications and shall be subject to final approval of the City Engineer. 107. Design and install modifications of the traffic delineation on the adjacent arterial highways.
108. Provide a drawing with a turning template overlay to verify that the intended truck path can be accommodated.
109. Developer shall prepare for City a final Water Quality Management Plan for new development and significant redevelopment projects that meet one or more of the following criteria:
a. All significant redevelopment projects, where significant redevelopment is defined as projects that include the addition or replacement of 5,000 square feet or more of impervious surface on a developed site. Redevelopment does not include routine maintenance activities that are conducted to maintain original line and grade, hydraulic capacity, original purpose of the facility, or emergency redevelopment activity required to protect public health and safety.

Where redevelopment results in the addition or replacement of less than fifty

Precise Plan No. 579, Conditional Use Permit No. 1930, Tentative Parcel Map 2024-103 Conditions of Approval

percent of the impervious surfaces of a previously existing developed site, and the existing development was not subject to WQMP requirements, the numeric sizing criteria discussed below applies only to the addition or replacement, and not to the entire developed site. Where redevelopment results in the addition or replacement of more than fifty percent of the impervious surfaces of a previously existing developed site, the numeric sizing criteria applies to the entire development.
b. New development projects that create 10,000 square feet or more of impervious surface (collectively over the entire project site) including commercial, industrial, residential housing subdivisions (i.e., detached single family home subdivisions, multi-family attached subdivisions (town homes), condominiums, apartments, etc.), mixed-use, and public projects. This category includes development projects on public or private land, which fall under the planning and building authority of the permittees. c. Automotive repair shops (with SIC codes 5013, 5014, 5541, 7532-7534, 7536- 7539).
d. Restaurants where the land area of development is 5,000 square feet or more. e. All hillside developments on 5,000 square feet or more, which are located on areas with known erosive soil conditions or where the natural slope is twentyfive percent or more. f. Developments of 2,500 square feet of impervious surface or more, adjacent to (within 200 feet) or discharging directly51 into environmentally sensitive areas, such as areas designated in the Ocean Plan as Areas of Special Biological Significance or waterbodies listed on the CWA Section 303(d) list of impaired waters.
g. Parking lots of 5,000 square feet or more of impervious surface exposed to storm water.

Parking lot is defined as a land area or facility for the temporary storage of motor vehicles.
h. Streets, roads, highways and freeways of 5,000 square feet or more of paved surface shall incorporate USEPA guidance, “Managing Wet Weather with Green Infrastructure: Green Streets” in a manner consistent with the maximum extent practicable standard. This category includes any paved surface used for the transportation of automobiles, trucks, motorcycles and other vehicles and excludes any routine road maintenance activities where the footprint is not changed.
i. Retail gasoline outlets of 5,000 or more square feet with a projected average daily traffic of 100 or more vehicles per day.
j. Emergency and public safety projects in any of the above-listed categories may be excluded if the delay caused due the requirement for a WQMP compromises public safety, public health and/or environmental protection. 110. An approved WQMP is required prior to the City issuing a grading or building permit.

Each successor of the business or property is responsible for compliance with the WQMP.
111. Comply with the applicable provision of City ordinances concerning payment of fees or assessments, zoning regulations and subdivision development. All fees and assessments must be paid prior to issuance of the certificate of occupancy or temporary certificate of occupancy, whichever occurs first, except for fees that are

Precise Plan No. 579, Conditional Use Permit No. 1930, Tentative Parcel Map 2024-103 Conditions of Approval

noted within the Conditions of Approval to be paid earlier. 112. Pay a Traffic Impact Fee based on land use per the Council approved Master Fee Schedule Update on February 2, 2021 in the amount of:
 Single Family Residential - $299 per Unit
 Multifamily Residential - $233 per Unit
 Office - $0.34 per Square Foot
113. Pay a Drainage Annexation Fee in the amount of $3,195.86 per gross acre of new development in accordance with Title 13 of the FVMC. In the event that this fee has not been paid with previous development activity, the developer shall be responsible for payment of the fee applied to the gross acreage of the entire property. 114. Pay a Sewer Connection Fee in accordance with the City’s Sewer Master Plan and Title 14 the FVMC. In the event that this fee has not been paid with previous development activity, the developer shall be responsible for payment of the fee applied to the gross acreage of the entire property.
115. Pay $4.65 per front foot for the existing sewer line in Euclid Street in accordance with Title 14 of the Fountain Valley Municipal Code.
116. Pay $4.65 per front foot for the existing waterline in Euclid Street and Heil Avenue in accordance with Title 14 of the FVMC.
117. Pay a Median Beautification Fee in the amount of $8.54 per front foot for medians on Euclid Street in accordance with Title 20 of the FVMC.
118. Provide Improvement Bonds in an amount equal to 100 percent of the total cost of construction of all public improvements prior to the approval of the improvement plans. 119. A landscape bond subject to the approval of the City Attorney shall be posted with the City for a period of two years from the date of issuance of the initial Certificate of Occupancy guaranteeing proper maintenance of the landscaping. The amount of this bond shall be calculated as follows:

Total Gross Acres of Development Site x 15 percent (percentage of landscaping required per development site) x $6,250.00 per acre per year x 2 years
120. All new proposed onsite streets and parks shall be privately owned and maintained. 121. The onsite water system shall connect to the water mains in Mt. Nimbus St. and Topaz Ave to eliminate dead ends. The main connections shall be straight in alignment, with no bends between the onsite water system and the offsite water mains. The developer shall install valves at both sides of each easement for the connections to the water mains in Mt. Nimbus St. and Topaz Ave.
122. Properly abandon the active on-site production well in accordance with City and State Standards. The well will need to be abandoned prior to any water system construction.

Precise Plan No. 579, Conditional Use Permit No. 1930, Tentative Parcel Map 2024-103 Conditions of Approval

Add a construction note on the plans to abandon the well per city standards. 123. New sewer main shall be piped to drain west into the existing vacant Euclid sewer main where it can discharge into the OCSD manhole a short distance away at Heil. 124. The existing sewer main on Euclid shall be cleaned [jetted] and CCTV inspected by the developer prior to construction to check for sags, cracks, broken pipe etc. to ensure that the pipe is worthy of a new connection, and if not worthy, the developer is to make all necessary repairs, cleaning, or replacements needed prior to construction. 125. The Northern portion of Heil Avenue shall to be widened in accordance with City of Fountain Valley Standard Plans. Full pavement and striping restoration of Heil Avenue to the satisfaction of the City Engineer, curb to curb, is required for the full frontage of the proposed development. Additional pavement and striping restoration of Heil Avenue to the satisfaction of the City Engineer may be required for continuity. 126. Install safety countermeasure recommendations as listed and recommended in the Traffic Impact Analysis for the Project.
127. Modifications may be needed to the existing traffic signal at Euclid and Heil to accommodate the widening of Heil and may require the upgrade of all equipment to current standards.
128. Developer shall use recycled water in their common areas and rights-of-way. There is existing available recycled water infrastructure in both Euclid Street and Heil Avenue. 129. All onsite and offsite landscaping installed by the Developer shall be privately maintained.
130. Sidewalk on the Eastern portion of Euclid Street fronting the property shall be widened to the full width to match the existing conditions immediately to the North to the satisfaction of the City Engineer.
131. Water service to apartment residences shall be “master metered” and shall have two looped water service points of connection on either separate streets or two separate runs of water mains that are separated by operable valves. It is the responsibility of the developer to coordinate with the City to ensure that valves are operable.

Townhome/single family residences shall have individual meters. 132. Facilitate accessibility to the proposed Emergency Vehicle Access at the proposed development on Euclid Street, including, but not limited to, required studies, design plans and modification of the median on Euclid Street along the frontage of the property and beyond, if necessary, per City Standards and to the satisfaction of the City Engineer.
133. DCDA’s shall have two looped water service points of connection on either separate streets or two separate runs of water mains that are separated by operable valves. It is the responsibility of the developer to coordinate with the City to ensure that valves are operable.
134. The developer shall design a designated trash pickup area outside of public right of

Precise Plan No. 579, Conditional Use Permit No. 1930, Tentative Parcel Map 2024-103 Conditions of Approval

way that does not hinder vehicular or pedestrian traffic flow on Heil Avenue or Euclid Street to the satisfaction of the City Engineer.
135. Applicant must pay development fees prior to permit issuance. 136. Euclid Street is a moratorium street, with moratorium ending 9/21/26. As such, full pavement and striping restoration of Euclid Street, to the satisfaction of the City Engineer, curb to curb, may be required for the full frontage of the proposed development. Exact limits of restoration shall be determined by the City Engineer. 137. Impact Fees including the Traffic Impact Fee and Park Site Fee shall be paid prior to issuance of certificate of occupancy or temporary certificate of occupancy, whichever occurs first.
138. Utility fees such as the Drainage Annexation Fee, Water Annexation Fee, Sewer Connection Fee, and Water Supply Facilities Fee shall be paid after grading or at the time of connection, respectively.
139. A deposit shall be made for the Public Improvement Plan Checking Fee prior to review of the first plan submittal, and a deposit shall be made for the Public Improvement Inspection Fee prior to Public Works Plan Check approval. Deposits shall always maintain a positive balance, and as such, periodic payments may be necessary. All assessment and review/plan checking fees shall be paid prior to Public Works Department Plan Check approval.
140. The applicant shall provide one (1) to two (2) additional street trees along the north side of Heil Avenue between the proposed Street A and the Apartment Parcel to the satisfaction of the Public Works Director.
141. The North and South gates of the parking structure shall remain open during the hours of 6:00 a.m. to 10:00 p.m.
142. The City reserves the right to prohibit the eastbound left turn access at Heil Avenue and Driveway 1 and have the full median restored in place should the eastbound leftturn movement begin to affect operations at the intersection of Euclid Street and Heil Avenue after project opening. The developer or property owner may work with the City to resolve operational issues at the intersection by methods including, but not limited to, signage and striping and/or traffic study assessment prior to restoration of the median and closure of the eastbound left turn pocket. However, the City reserves the right to close the eastbound left-turn access to Driveway 1 if deemed necessary by the City Engineer. All costs, development, and construction associated to the removal of the eastbound left-turn and restoration of the median shall be borne by the developer or property owner.

Public Works – Environmental Division

Precise Plan No. 579, Conditional Use Permit No. 1930, Tentative Parcel Map 2024-103 Conditions of Approval

143. All new development and significant redevelopment shall comply with the requirements of the Fountain Valley Municipal Code 21.18.120, the provisions of Chapters 14.40 and 18.06 of this code, the City’s Local Implementation Plan (LIP) and NPDES Order No. R8-2009-0030 (NPDES No. CAS 618030) to reduce and or eliminate the discharge of pollutants in urban and storm water runoff.
144. The Developer shall integrate Best Management Practices to ensure compliance with NPDES guidelines and the City’s Stormwater Management Ordinance, FVMC

21.18.120, prior to the issuance of the grading permit. The design, implementation, construction activities and maintenance of the management devices shall mitigate and reduce pollutants in storm water discharges to the maximum extent practicable. 145. An approved WQMP is required prior to the City issuing a grading or building permit.

Each successor of the business or property is responsible for compliance with the WQMP.
146. The project’s demolition activities shall comply with the City’s Construction and Demolition Recycling Program (C&D Recycling Program). Complete the following steps in order to create your Construction Waste Management Plan (CWMP). 147. Complete and submit the Construction Waste Management Plan (CWMP) before any Building permits have been issued.
148. Identify which authorized recycling/transfer hauling facility you will by using. 149. Save and submit to the City the weight ticket(s) indicating Construction & Demolition (C&D) and or Construction Demolition Public (CDP) and/or Diversion Report for review.
150. All projects will be signed off when all weight tickets demonstrate compliance and include the following information per the City of Fountain Valley Municipal Code 6.09. 151. An approved WQMP is required prior to the City issuing a grading or building permit.

Each successor of the business or property is responsible for compliance with the WQMP.
152. Trash Enclosures areas must comply with State Recycling Regulations. Each enclosure shall provide sufficient area for the collection of refuse and recyclable materials. Trash containers shall be enclosed to prevent discharge of trash, and be equipped with lids or screened, roofed or walled, and runoff should be diverted around trash areas to avoid flow through. Trash enclosure drainage if any should be directed to vegetative areas whenever feasible.
153. Prior to the issuance of a Certificate of Occupancy or final approval of permits, the project shall demonstrate compliance with the City’s NPDES Implementation Program including:
a. Demonstrate that all structural Best Management Practices (BMPs)

Precise Plan No. 579, Conditional Use Permit No. 1930, Tentative Parcel Map 2024-103 Conditions of Approval

described in the BMP Exhibit from the project’s approved WQMP have been implemented, constructed and installed in conformance with approved plans and specifications;
b. Demonstrate that the applicant has complied with all non-structural BMPs described in the project’s WQMP;
c. To ensure that all stormwater-related BMPs are constructed and/or installed in accordance with the Local Implementation Plan (LIP), a Final WQMP, as well as a Master Covenant and Agreement (C&A) Form for the Operation & Maintenance (O&M), of all the (BMPs) recorded against the property must be submitted to the City for review and approval (the O&M Plan shall become an attachment to the WQMP). Both C&A and O&M shall be recorded with the Orange County Registrar-Recorder. These documents may be inspected by the City of Fountain Valley at any time and shall be made available to the City upon request. The city will withhold the grading and/or building permit for the development application until this requirement is satisfied.
d. The C&A is bound to the property and transfers to the new owner with any subsequent sale of the property. The C&A shall provide guarantee access permission for the city personnel to enter the facility to verify that maintenance is being conducted in accordance with the O&M plan throughout the life of the project. Attached to the C&A will be an O&M Plan, describing the BMPs operation and maintenance procedures, employee training program and duties, operating schedule, maintenance frequency, routine service schedule, and other activities. A copy of the O&M plan shall be provided to all property owners and tenants. A maintenance log shall be maintained at the facility to document all the activities mentioned above.

Both C&A and O&M shall be recorded with the Orange County RegistrarRecorder. These documents may be inspected by the City of Fountain Valley at any time and shall be made available to the City upon request. The city will withhold the grading and/or building permit for the development application until this requirement is satisfied.
e. In the event adequate maintenance is not conducted and for the best interest of the city, the City may take necessary steps to restore the treatment facility to good working order. The property owners will be responsible for reimbursing the city for expenditures associated with the restoration works.

Fire Department
154. Code. Group R3 and R2 Occupancies shall comply with 2022 California Fire Code (CFC), 2022 California Building Code (CBC), and current Fountain Valley Municipal Code (FVMC).
155. Automatic Fire Sprinkler Systems. An automatic fire sprinkler system shall be provided in accordance with the 2022 California Building Code and for the following:
a. All new homes per state requirements 13 and 13-D Systems. 156. Premise Identification. Approved numbers or addresses shall be provided for all new and existing buildings in such a position as to be plainly visible and legible from the street or road fronting the property. CFC 505.1

Precise Plan No. 579, Conditional Use Permit No. 1930, Tentative Parcel Map 2024-103 Conditions of Approval

157. Portable Fire Extinguishers. Provide one 2A10BC State Fire Marshal tagged fire extinguisher for every 3000 square feet of floor area. Travel distance not to exceed 75 feet. CFC 906.3
158. Knox Box. Where access to or within a structure or area is restricted because of secured openings or where immediate access is necessary for life-saving or firefighting purposes, the fire code official is authorized to require a key box to be installed in an approved location. The key box shall be of an approved type and shall contain keys to gain necessary access as required by the fire code official. CFC 506.1
159. Fire Department Access & Water Requirements for Commercial and Residential Development Guideline. All new projects and developments shall follow FVFD fire department access roadways, access walkways to and around buildings, and hydrant quantity and placement. CFC 501.1 & FVMC 17.06.080 160. Fire Alarm and Detection Systems required for group R2 and R1. CFC 907 161. Emergency Responder Communication Coverage. All new buildings shall have approved radio coverage for emergency responders within the building based upon the existing coverage levels of the public safety communication systems utilized by the jurisdiction, measured at the exterior of the building. The Emergency Responder Radio Coverage System shall comply with the Orange County Sheriff's Department, Communications and Technology Division guidelines and specifications and, where the functionality or performance requirements in the California Fire Code are more stringent. CFC 510 & FVMC 17.06.040
162. Emergency escape and rescue windows access was established to ensure codecompliant access to emergency escape and rescue windows where aerial apparatus access is not physically feasible, or where nexus does not exist given the size of the building. Ladder pathways and pads are reviewed on a case-by-case basis, and prior approval to utilize either of the two options is required. Where conflicts with required landscape elements are found (primarily trees) the construction type of the building shall be modified to eliminate the need for rescue windows. 163. General. Fire Safety during construction shall comply with Chapter 33 of the 2022 California Fire Code as well as the following:
164. Access for Fire Fighting. Provide Fire Department access roads prior to the start of combustible construction. Roads shall be installed to Fire Department and Public Works standards. CFC 3310
165. Fire Hydrants. Hydrants shall be installed in accordance with The Fire Code official approval and City Engineer prior to start of any combustible construction. CFC 3310 166. Portable Fire Extinguishers. Structures under construction, alteration or demolition shall be provided with not less than one approved portable fire extinguisher in accordance with Section 906 and sized for not less than ordinary hazard as follows:

Precise Plan No. 579, Conditional Use Permit No. 1930, Tentative Parcel Map 2024-103 Conditions of Approval

a. At each stairway on all floor levels where combustible materials have accumulated.
b. In every storage and construction shed.
c. Additional portable fire extinguishers shall be provided where special hazards exist including, but not limited to, the storage and use of flammable and combustible liquids. CFC 3315.1
167. Hazardous Materials. There shall be no hazardous storage where the aggregate quantity exceeds the exempt amounts set forth in the California Fire Code. All storage, dispensing, use and handling of hazardous materials shall be in accordance with Chapter 50 of the 2019 California Fire Code.
168. The City shall collect from the applicant the Fire Facilities Development Impact Fee before the issuance of a certificate of occupancy, a temporary certificate of occupancy, final building permit approval, or construction approval for pads, whichever occurs first.
$639 (per unit) x 2.67(average occupancy) = $1706+34 (admin fee) = $ 1,740 per unit for new developments.

Euclid/Heil
524 units $911,760.00
Impact Annual Fees for Senior Units:
82 units x ($208.00 per unit + $34.00 (admin fee)) = $19,844.00 annually. 169. Plans and permits required for all 13 and 13-D automatic fire sprinkler systems. 170. Parking Structure and Apartments will require standpipe system and Fire Department Connection.
171. Fire pump may be required depending on the water pressure. 172. Backup power (generator) may be required for mechanical and life safety system. 173. Provide a grand master key for all utility, exterior and common area doors. Keys will be secured in the Knox Boxes in approved locations. Specify model #3275 (recessed) or #3262 (surface mount) at the ends of the “fire access road” and the south and west side of the building facing Euclid Street and Heil Avenue. 174. Address requirements (visibility & stroke size) shall be provided per the CBC & CFC.

Individual residential units shall be subject to FVFD review and approval. 175. Additional fire hydrants may be required. Fire Department and Public Works permits will be required for review and approval of additional fire hydrants. 176. Parking identification for Fire Department access will be addressed and identified during civil plan and utilities submittal.
177. All Hazardous Materials disclosure updates shall be completed at time of final inspection.

Precise Plan No. 579, Conditional Use Permit No. 1930, Tentative Parcel Map 2024-103 Conditions of Approval

Police Department
178. The interior premises shall be equipped with overhead lighting fixtures of sufficient intensity to illuminate every place to which residents are permitted access with an illumination of not less than ten (10) foot candle as measured at the floor level. 179. 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 (common areas/courtyards). Additional areas that shall be covered by surveillance cameras include each level of the parking structure, Heil Avenue entrance/exit of the parking structure (capturing ingress and egress of traffic), courtyards, exterior of Fitness Center, any pedestrian access points into the apartment complex, and lobby and mail areas. These cameras will have high resolution and lowlight capability; video from all cameras will be recorded and made available to the Police Department upon request.

Applicant’s Initials _______________
180. The petitioner shall be responsible for maintaining the premises free of graffiti. 181. Applicant shall work with the Police Department to ensure access to any areas secured by gates (controlled access) through the use of a remote, knox box, or other means for legitimate law enforcement purposes – i.e. calls for service/investigations.

RESOLUTION NO.________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

FOUNTAIN VALLEY APPROVING THE DENSITY BONUS AND
AFFORDABLE HOUSING AGREEMENT (16300 EUCLID STREET,

FOUNTAIN VALLEY) BETWEEN THE CITY AND EUCLID & HEIL
FV OWNER, LLC RELATING TO THE 606-UNIT RESIDENTIAL

DEVELOPMENT PROJECT INCLUDING AFFORDABLE UNITS
WHEREAS, the City of Fountain Valley (“City”) is a California municipal corporation; and
WHEREAS, the City of Fountain Valley Planning Commission (“Planning Commission”) acts in accordance with the ordinances of the City and laws of the State of California (“State”) and thereby is authorized to make recommendations to the City Council and in certain instances to take final action with regard to certain land use decisions and approvals for development within the City; and WHEREAS, the Fountain Valley General Plan Update was approved by the City Council on November 21, 2023 through Resolution No. 9903; and WHEREAS, the City is obligated by State law and the Housing Element of the General Plan to plan for the community’s supply of low to moderate income housing to meet the City’s objectives to achieve its Regional Housing Needs Allocation (“RHNA”); and WHEREAS, in furtherance of the objectives of the Housing Element of the General Plan, the City has affirmed their intention to improve and increase the community’s supply of multi-family affordable housing available at an affordable rent and affordable housing cost and covenanted for the longest feasible period; and WHEREAS, Euclid & Heil FV Owner, LLC, a Delaware limited liability company (“Developer” or “Owner”) is the owner of certain real property (total 18.64 acres) located at 16300 Euclid Street (APN No 144-111-01) (“Site”), and as legal described in the legal description of the Site, Attachment No. 2, to that certain Density Bonus and Affordable Housing Agreement (16300 Euclid Street, Fountain Valley) (“DBAHA”) attached to and presented with this agenda item; and
WHEREAS, the Site (18.64-acres) will be subdivided into an 18.09-acre property for the development of the Project, and of which 0.55-acres of that 18.64 acres will be dedicated to the City for the expansion of Heil Avenue, and the 18.09 property will be subdivided into separate parcels related to the market-rate ownership and rental components, and the affordable housing component of the overall Project; and WHEREAS, capitalized terms used in this Resolution are as defined in the DBAHA unless otherwise defined herein; and
WHEREAS, on June 25, 2025 the Planning Commission considered and approved Developer’s application for land use entitlements to construct, develop and operate a 606- unit residential development on the Site that will be subdivided and allocated as to types of housing units including: (i) 304 rental apartments in a five-story wrap building developed on

2 a 3.31-acre parcel, (ii) 83 rental apartments in a five-story building developed on a 0.78-acre parcel of which 82 (of 83) apartments shall be covenanted for occupancy by qualified Low Income Households at an Affordable Rent, which Affordable Units may be satisfied by an 83-unit Senior Apartments on the Affordable Housing Parcel (as the terms are defined in the DBAHA) with one (1 of 83) units designated as the Manager Unit, and (iii) 219 townhome/triplex for-sale, ownership units developed on a 14-acre parcel, of which (A) 183 units are for-sale, ownership townhomes, and (B) 12 triplexes (total 36 units) also are for-sale, ownership units (together, “Project”); and
WHEREAS the land use Entitlement approved for the Project includes the following actions considered and approved in accordance with the Fountain Valley Municipal Code (FVMC) and applicable State laws:
 Per FVMC Chapter 21.44, by Resolution 25-11, the Planning Commission approved Precise Plan No. 579, Conditional Use Permit No. 1730, and Tentative Parcel Map No. 2024-103 required for the development of the structures that comprise the Project, which is contingent upon the City Council’s consideration and approval to execute and enter into the DBAHA to implement the density bonus sought by the Developer and approved by the City for the subject housing development pursuant to the California Density Bonus Law, Government Code Section 65915, et seq. and Fountain Valley Municipal Code (FVMC), Chapter

21.08.050(a), (together, ”DBL”).
 Condition of Approval No. 24 of Planning Commission Resolution No. 25-11 requires the City and Developer to enter into the DBAHA as a condition precedent to the issuance of the Initial City Permit for the Project, which DBAHA evidences compliance with the DBL and the City’s Inclusionary Housing Program for the Affordable Units subject to recorded affordability restrictions for a 55-year Affordability Period.
 The City of Fountain Valley prepared an Addendum to the Final EIR for the 2045 Fountain Valley General Plan (State Clearinghouse No. 2022100563).

The Draft Environmental Impact Report (“DEIR”) for the 2045 Fountain Valley General Plan (State Clearinghouse No. 2022100563) addressed the potential environmental effects associated with implementation of the Project. Pursuant to Public Resources Code Section 21165 and the California Environmental Quality Act Guidelines (CEQA Guidelines) Section 15050, the City of Fountain Valley is the lead agency for the Project. Pursuant to Public Resources Code Section 21083 and CEQA Guidelines Section 15087, the DEIR was available for a 45-day public review from Friday, June 9, 2023, through Monday, July 24, 2023. A hard copy of the full DEIR was made available to all interested persons at City Hall and posted online at: https://www.fountainvalley.org/1282/General-Plan-Update.

In conformance with CEQA, State CEQA Guidelines, and the City CEQA Guidelines, the City of Fountain Valley conducted an extensive environmental review of the Project.
o A Notice of Preparation (NOP) of the DEIR was completed on October 25, 2022. The public review period occurred between October 25, 2022 to November 24, 2022. The NOP was published in the Fountain Valley View on October 25, 2022. The NOP was posted at the Orange County Clerk’s office

3 on October 25, 2022. Copies of the NOP were mailed to interested persons and organizations.
o Preparation of the DEIR was made available for a 45-day public review period beginning June 9, 2023, and ending July 24, 2023. The scope of the DEIR was determined based on the CEQA Guidelines Appendix G Checklist, and comments received in response to the NOP. The Notice of Availability (NOA) for the DEIR was sent to interested persons and organizations, sent to the State Clearinghouse in Sacramento for distribution to public agencies, posted at the City of Fountain Valley’s website, and published in the Fountain Valley View. The NOA of the DEIR was both posted at the Orange County Clerk’s office and published in the Fountain Valley View on June 8, 2023. o A Final EIR was prepared that includes responses to comment letters received during the 45-day public review period. Pursuant to Public Resources Code Section 21092.5, a copy of the Final EIR was distributed to all commenting governmental agencies and departments at least 10 days prior to certification of the Final EIR.
o Both the DEIR and Final EIR were made available at City Hall and online at:
https://www.fountainvalley.org/1282/General-Plan-Update. o The General Plan FEIR was certified by the City Council on November 21, 2023. An Addendum to the FEIR (Exhibit 1 of Planning Commission Resolution No. 25-11) has been prepared to identify whether the proposed revisions would result in any new significant impacts beyond those identified in the General Plan FEIR (CEQA Guidelines Section 15162).
o As detailed in the Addendum, on the basis of substantial evidence in the light of the whole record, a Subsequent or Supplemental EIR is not required for the proposed Project because none of the criteria requiring such a document under Public Resources Code Section 21166 or State CEQA Guidelines section 15162 are met.
o The Project would result in no new significant impacts that were not analyzed in the General Plan FEIR, nor would the proposed Project cause a substantial increase in the severity of any previously identified significant impacts. The potential impacts associated with the proposed Project would either be the same or less than those described in the General Plan FEIR. In addition, there are no substantial changes to the circumstances under which the proposed Project would be undertaken that would result in new or more severe environmental impacts than previously addressed in the General Plan FEIR, nor has any new information regarding the potential for new or more severe significant environmental impacts been identified. Therefore, in accordance with Section 15164 of the State CEQA Guidelines, an Addendum to the previously certified General Plan FEIR has been prepared for the proposed Project.
o The Planning Commission, as the Lead Agency, arrived at its independent judgement and found that on the basis of the Addendum and any comments received that there is no substantial evidence that the Project would have a significant adverse impact on the environment provided that the mitigation

4 measures identified in the environmental document are incorporated into the Project.

WHEREAS, pursuant to the DBL, owners of residential projects that include certain levels of affordable housing are entitled to seek, apply for, and receive a density bonus and additional incentives/concessions in order to facilitate the economic feasibility of those projects; and
WHEREAS, pursuant to the City’s Inclusionary Housing Program, FVMC 21.17.040(a), developers/owners of residential development projects shall include certain onsite 15% of base units as covenanted affordable housing or exercise of the In-Lieu Fee Option by which payment of a per/unit In-Lieu Fee occurs instead of onsite inclusionary affordable housing (albeit and notwithstanding, for this Project the DBL requires Developer to cause construction, completion and operation of the Affordable Unit because the DBL does not allow payment of in-lieu fees to circumvent development of the DBL Affordable Units); and
WHEREAS, the Developer, through its representative EPD Solutions Inc., as Applicant, submitted an application to the City evidencing its intention to comply with the DBL and the City’s Inclusionary Housing Program by reserving fifteen percent (15%) of its base units as affordable to Low Income Households earning less than 80 percent of the Orange County area median income (“AMI”), which equates to a total of 82 on-site Affordable Units (plus one Manager Unit) for occupancy by Low Income Households at an Affordable Rent for a 55-year Affordability Period; and WHEREAS, by providing 15 percent of its base units as affordable, the Project will exercise a 27.5 percent (i.e., 149-unit) density bonus option pursuant to the DBL; and, although the DBL allows for a 149 unit density bonus, Developer elected, sought, applied for, and received approval to construct only 63 density bonus units for a density bonus of

11.7 percent, albeit and nonetheless the Inclusionary Housing Program requires 15% affordable units; and
WHEREAS, the DBL allows the City to approve one incentive/concession for the Project because the Developer agrees to include 82 Affordable Units in the Project as covenanted and restricted for occupancy by Low Income Households at an Affordable Rent for the 55-year Affordability Period, including one (1) concession, four (4) waivers, and four (4) reductions as granted by the City, which are set forth in Precise Plan No. 579 (Planning Commission Resolution 25-11) and implemented under the DBAHA; and:

WHEREAS, the DBL allows an owner to use state parking standards that are reduced from local jurisdiction parking standards, and the Developer agreed to use state parking standards for the Project as approved by the City; and
WHEREAS, the DBAHA establishes the terms and conditions of Developer’s design, planning, construction, operation, management and maintenance of the Project on the Site, in particular development, designation, use, and operation of the 82 Affordable Units plus one onsite Manager Unit, and requires Developer to comply with all Conditions of Approval set forth in Precise Plan No. 579 (Resolution 25-11) approving the Entitlement for development of the Project; and

5 WHEREAS, the salient provisions of the DBAHA include: (1) the terms, conditions, and performance obligations of the parties to carry out the planning, design, construction, and operation of the affordable housing component of the Project in compliance with Precise Plan No. 579 and the DBAHA; (2) establish the senior, nonsubordinate City Covenants as required by the Entitlement and the DBAHA, (3) cause recording of the senior, nonsubordinate Memorandum of Agreement evidencing the DBAHA, (4) terms and conditions of the covenants, conditions, and restrictions for the Affordable Units during the Affordability Period, and the property management and maintenance obligations related to ownership and operation of the Affordable Units (land and improvements); (4) insurance and indemnification provisions, (5) Developer’s rights and obligations with regard to construction, completion and operation of the Affordable Units, inclusive of the Senior Apartments on the Affordable Parcel, or otherwise within the Site, (6) Surety Bond for In-Lieu Fees, to ensure either 15% inclusionary Affordable Units within the Project, or payment of In-Lieu Fees, and (7) Completion Guaranty executed by Developer’s parent entity or other qualified Affiliate that guarantees construction, completion of covenanted Affordable Units, or covenanting of Low Income Affordable Units within the Site; and
WHEREAS, under the DBAHA, the Affordable Units required as a part of the overall Project are required to be covenanted for tenancy and occupancy by qualified Low Income Households and available at an Affordable Rent pursuant to the Prescribed Rent Level and Unit Mix; and
WHEREAS, notwithstanding that under the Inclusionary Housing Program the obligation to provide onsite Affordable Units may be satisfied by exercise and payment of the In-Lieu Fee option, under the DBAHA Developer acknowledges and agrees that the Affordable Units required by the DBL cannot be satisfied by payment of In-Lieu Fees and the Affordable Units, inclusive of the Senior Apartments on the Affordable Parcel, must be constructed, completed, and operated and made available at an Affordable Rent to Low Income Households for the 55-year Affordability Period. In the event the Affordable Developer does not undertake development and operation of the Senior Apartments, then the DBAHA and the City Covenants of record must be amended to conform to the facts of how many units of the Project are Affordable Units required by the DBL and how the City’s Inclusionary Housing Program will be satisfied by Developer either via exercise and payment under the In-Lieu Fee option or inclusion of Low Income Affordable Units onsite; and WHEREAS, the approval and implementation of the DBAHA will meet all of the criteria of the DBL, the City’s Inclusionary Housing Program, and related affordable housing laws and regulations; and
WHEREAS, this DBAHA has been duly processed in accordance with the DBL, the City’s Inclusionary Housing Program, City rules and regulations, and related affordable housing laws and regulations; and
WHEREAS, the City Council on October 23, 2025 considered the DBAHA; and WHEREAS, the City Council intends by this Resolution to approve and authorize execution, and attest of the DBAHA and recording of the Memorandum of Agreement and City Covenants Agreement in the Official Records, receipt of the duly executed Completion Guaranty by Guarantor in favor of the City, each as Conditions Precedent to issuance of the

6 Initial City Permit, then later the Surety Bond shall name the City as obligee, i.e., the party protected by and is beneficiary of the bond, which bond shall be delivered to City prior to and as a condition to the City’s issuance of the first CoO for the first housing unit in the Project.

NOW, THEREFORE, the City Council of the City of Fountain Valley, DOES HEREBY RESOLVE as follows and hereby incorporates the foregoing Recitals as a substantive part of this Resolution:

SECTION 1:

Per the California Environmental Quality Act (CEQA), the City prepared an Addendum to the Final EIR for the 2045 Fountain Valley General Plan (State Clearinghouse No. 2022100563).

The Draft Environmental Impact Report (DEIR) for the 2045 Fountain Valley General Plan (State Clearinghouse No. 2022100563) addressed the potential environmental effects associated with implementation of the proposed project. Pursuant to Public Resources Code Section 21165 and the California Environmental Quality Act Guidelines (CEQA Guidelines) Section 15050, the City of Fountain Valley is the lead agency for the proposed project.

Pursuant to Public Resources Code Section 21083 and CEQA Guidelines 15087, the DEIR was available for a 45- day public review from Friday, June 9, 2023, through Monday, July 24, 2023. The DEIR was made available at City Hall and online at:
https://www.fountainvalley.org/1282/General-Plan-Update. In conformance with CEQA, the State CEQA Guidelines, and the City of Fountain Valley CEQA Guidelines, the City of Fountain Valley conducted an extensive environmental review of the proposed project.  Completion of a Notice of Preparation (NOP) on October 25, 2022. The public review period extended from October 25, 2022, to November 24, 2022. The NOP was published in the Fountain Valley View on October 25, 2022. The NOP was posted at the Orange County Clerk’s office on October 25, 2022. Copies of the NOP were mailed to interested persons and organizations.
 Preparation of the DEIR that was made available for a 45-day public review period beginning June 9, 2023, and ending July 24, 2023. The scope of the DEIR was determined based on the CEQA Guidelines Appendix G Checklist, and comments received in response to the NOP. The Notice of Availability (NOA) for the DEIR was sent to interested persons and organizations, sent to the State Clearinghouse in Sacramento for distribution to public agencies, posted at the City of Fountain Valley’s website, and published in the Fountain Valley View. The NOA was both posted at the Orange County Clerk’s office and published in the Fountain Valley View on June 8, 2023.
 A Final EIR was prepared that includes responses to comment letters received during the 45-day public review period. Pursuant to Public Resources Code Section 21092.5, a copy of the Final EIR was distributed all commenting governmental agencies and departments at least 10 days prior to certification of the final EIR.  Both the Draft and Final EIR were made available at City Hall and online at:
https://www.fountainvalley.org/1282/General-Plan-Update.

7 SECTION 2:

The City Council hereby finds:
a. The DBAHA implements the DBL the City’s Inclusionary Housing Program, and will be in the best interest of the City.
(i) The DBAHA will reserve 15 percent of its base units as affordable to Low Income Households earning less than 80 percent of the Orange County median income. This equates to a total of 82 on-site Affordable Units for occupancy by Low Income Households at an Affordable Rent to help meet the City’s RHNA allocation of 4,839 units. By providing 15 percent of its base units as affordable, the Project will exercise a 27.5 percent (i.e., 149 units) density bonus option pursuant to the DBL. Although the DBL allows for a 149-unit density bonus, the Developer elected, sought, and applied for, and the City approved, only 63 density bonus units for a density bonus of 11.7 percent. Also, pursuant to the DBL, owners of residential projects that include certain levels of affordable housing are entitled to apply for and receive a density bonus and additional incentives in order to facilitate the economic feasibility of those projects. Annual monitoring will be conducted by the City per the DBAHA, to confirm the Affordable Units remain in compliance. Developer will post a Surety Bond for In-Lieu Fees as security for causing completion and operation of the Affordable Units. b. The DBAHA is consistent with the actions, goals, objectives and policies of General Plan, any applicable specific plan, and the FVMC. (i) The DBAHA will promote the construction of additional dwelling units to help accommodate Fountain Valley’s share of regional housing needs in accordance with adopted land use policies (Housing Element Goal H-1, Policy H-1.1).

The Amendments will help aid in meeting the City’s Regional Housing Needs Allocation (RHNA) of 4,839 units by the year 2029 in accordance with adopted land use policies and the draft 6th Cycle Housing Element. Also, the DBAHA will also promote and encourage the development of a variety of housing opportunities to accommodate current and projected households by providing a variety of housing opportunities for all income levels through different land uses and densities (Housing Element Goal H-1, Policy H-1.2). The DBAHA will allow for development that may utilize density bonus options pursuant to State Density Bonus Law consistent with Government Code Sections 65915-65918 including incentives such as incentives/concessions and waivers/reductions to cause construction and operation of the Affordable Units that are restricted as affordable benefiting Low Income persons available at an Affordable Rent as defined in the California Health and Safety Code.
c. The DBAHA will promote the public convenience, health, interest, safety or welfare of the City.

SECTION 3
The City Manager (or her authorized representative) and the City’s legal counsel are authorized to finalize and execute the DBAHA on behalf of the City and approve and execute,

8 including receipt of, any necessary related implementing or additional documents, and/or later amendments to the DBAHA. The City Manager (or her authorized representative) in consultation with legal counsel is authorized to make nonsubstantive, minor changes and inserts to the form of DBAHA presented with this agenda item; then, the DBAHA when duly finalized, executed, and attested shall be placed on file in the office of the City Clerk Administrator and a complete copy shall be attached as a part of this Resolution. Further, the City Manager (or her authorized representative) is authorized to implement the DBAHA and take all further actions and execute and accept all documents referenced therein, and/or necessary and appropriate to carry out the DBAHA and development of the Project. The City Manager (or her authorized representative) in consultation with legal counsel is authorized to the extent necessary during the implementation of the DBAHA to make technical, nonsubstantive, or minor changes and interpretations thereto after execution, as necessary to properly implement and carry out the DBAHA, provided any and all such changes shall not in any manner materially affect the rights and obligations of the City thereunder or dilute Developer’s obligation to cause development and covenanting of the Affordable Units for occupancy by Low Income Households and available at an Affordable Rent for the 55-year Affordability Period.

SECTION 4
The DBAHA incorporates the following conditions:
a. The DBAHA shall be considered and approved by the City Council and, if approved, entered into between the City and Developer prior to the issuance of the Initial City Permit (likely initial grading permit(s)) for the Project. b. Within 60 days of the adoption of this Resolution but not later than the issuance of the Initial City Permit for the overall Project, the Memorandum of Agreement, substantially in the form of Attachment No. 3 to the DBAHA and the City Covenants Agreement, substantially in the form of the Attachment No. 4, with both to be duly executed, attested, notarized, and caused to be recorded in the Official Records against the Site, and, as applicable, the Lender Consent(s), pursuant to the DBAHA.
c. Within 60 days of the adoption of this Resolution but not later than the issuance of the Initial City Permit for the overall Project, the City shall have received the duly issued Surety Bond for In-Lieu Fees and the duly executed Completion Guaranty.
d. Within 60 days of the adoption of this Resolution but not later than concurrent with Lender Consent(s) or a new deed of trust intended to secure construction financing of the Project, and other implementing forms of the DBAHA shall be duly executed, and as applicable, recorded in the Official Records, County of Orange, State of California, including the Civil Code Request for Notice of Default, substantially in the form of Attachment No. 5 to the DBAHA.

SECTION 5
The City Council hereby approves the Density Bonus and Affordable Housing Agreement (16300 Euclid Street, Fountain Valley), including Attachments thereto, in the form of Exhibit A.

9 SECTION 6
The City Clerk shall certify to the adoption of this Resolution.

THE FOREGOING RESOLUTION IS PASSED, APPROVED AND ADOPTED BY THE CITY COUNCIL THIS 23rd DAY OF OCTOBER, 2025 BY THE FOLLOWING ROLL CALL VOTE:

AYES:

NOES:

ABSTAIN:

ABSENT:

CITY OF FOUNTAIN VALLEY
By:

Mayor
ATTEST:

Rick Miller, City Clerk Administrator
APPROVED AS TO FORM:

City Legal Counsel

Exhibit A
Density Bonus and Affordable Housing Agreement
(16300 Euclid Street, Fountain Valley)

EXHIBIT A
Density Bonus and Affordable Housing Agreement
(16300 Euclid Street, Fountain Valley)
(to be attached)

4930-6338-0083v1/200348-0011

DENSITY BONUS AND

AFFORDABLE HOUSING AGREEMENT
(16300 Euclid Street, Fountain Valley)
by and between

CITY OF FOUNTAIN VALLEY
and

EUCLID & HEIL FV OWNER, LLC

TABLE OF CONTENTS
Page
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4930-6338-0083v1/200348-0011
Section 1. DEFINITIONS AND INTERPRETATION..................................................................8

1.1. Defined Terms ...............................................................................................................8

1.2. Singular and Plural Terms ...........................................................................................26

1.3. References and Other Terms .......................................................................................26

1.4. Exhibits Incorporated ..................................................................................................26

1.5. Representations and Warranties ..................................................................................26

1.5.1. City Representations .......................................................................................26

1.5.2. Developer Representations..............................................................................27

1.5.3. No Material Adverse Change..........................................................................28

1.5.4. Survival of Representations ............................................................................28 Section 2. SITE CONTROL.........................................................................................................28

2.1. Ownership of the Site; Obligation to Develop and Operate........................................28

2.2. Environmental Condition of the Site ...........................................................................29

2.2.1. Studies and Reports.........................................................................................29

2.2.2. Indemnification ...............................................................................................29

2.2.3. Duty to Prevent Hazardous Material Contamination......................................29

2.2.4. Release of Indemnitees ...................................................................................30

2.2.5. Environmental Inquiries..................................................................................30 Section 3. CONDITIONS PRECEDENT TO COMMENCEMENT OF
CONSTRUCTION OF THE PROJECT ..................................................................................31

3.1. Conditions Precedent in Favor of City ........................................................................31

3.2. Payment of Certain Fees at Certificate of Occupancy.................................................33

3.3. Review of Title ............................................................................................................33

3.3.1. Preliminary Report..........................................................................................33

3.4. Recordation..................................................................................................................35 Section 4. DEVELOPMENT PLANS; INSURANCE AND INDEMNITY,
FINANCING............................................................................................................................35

4.1. Development................................................................................................................35

4.1.1. Site Preparation ...............................................................................................35

4.2. Design Review; Development Plans for Project .........................................................35

4.2.1. Grading Plans..................................................................................................35

4.2.2. Landscaping Plans...........................................................................................35

4.2.3. Construction Drawings ...................................................................................35

4.2.4. Development Plans; Review and Approval ....................................................36

4.2.5. Revisions.........................................................................................................36

4.2.6. Defects in Development Plans ........................................................................36

4.2.7. City and Other Governmental Permits............................................................36

4.2.8. Cooperation re Development Plans; Revisions and Change Orders...............36

4.2.9. Periodic Submittals to City during Construction ............................................37

4.2.10. Selection of General Contractor......................................................................38

4.3. Cost of Construction; Performance under other Agreements......................................38

4.4. Insurance Requirements ..............................................................................................38

4.4.1. Insurance Coverage from Commencement of Construction through the term of the Affordability Period................................................................38

4.4.2. Additional Insurance Provisions and Requirements .......................................40

4.4.3. Insurance Requirements of Contractors and Subcontractors ..........................42

4.4.4. Reduction in Requirements.............................................................................42

4.5. Indemnity.....................................................................................................................43

TABLE OF CONTENTS (continued)
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4.6. Rights of Access ..........................................................................................................43

4.7. Compliance with Laws ................................................................................................43

4.8. Nondiscrimination in Employment .............................................................................44

4.9. Taxes and Assessments ...............................................................................................44

4.10. Liens and Stop Notices ................................................................................................44

4.11. Further Assurances ......................................................................................................45

4.11.1. By Developer ..................................................................................................45

4.11.2. By City ............................................................................................................45

4.11.3. Mortgages, Deeds of Trust for the Project......................................................45

4.11.4. Holder Not Obligated to Construct Improvements .........................................45

4.11.5. Notice of Default to Mortgagee or Deed of Trust Holders; Right to Cure.................................................................................................................45

4.12. Surety Bond for In-Lieu Fees ......................................................................................46 Section 5. COVENANTS AND RESTRICTIONS ......................................................................47

5.1. Use Covenants .............................................................................................................47

5.2. Affordable Housing Requirements..............................................................................47

5.2.1. Number of Affordable Units ...........................................................................47

5.2.2. Duration of Affordability Requirements.........................................................48

5.2.3. Selection of Tenants........................................................................................48

5.2.4. Income of Tenants...........................................................................................48

5.2.5. Determination of Affordable Rent for the Affordable Units ..........................48

5.2.6. Increases in Tenant Household Income ..........................................................49

5.2.7. Household Size Appropriate to an Affordable Unit........................................49

5.3. Verifications ................................................................................................................50

5.3.1. Income Verification ........................................................................................50

5.3.2. Annual Reports ...............................................................................................50

5.4. Maintenance of Site .....................................................................................................50

5.4.1. Maintenance Standards ...................................................................................51

5.4.2. Notice re Non-Compliance .............................................................................52

5.4.3. Program Maintenance .....................................................................................52

5.4.4. Occupancy Limits ...........................................................................................52

5.5. Nondiscrimination Covenants .....................................................................................53

5.5.1. Required Clauses.............................................................................................53

5.6. Management of the Affordable Units, inclusive of the Senior Apartments on the Affordable Parcel...................................................................................................54

5.6.1. Property Manager............................................................................................54

5.6.2. Property Management Plan.............................................................................54

5.6.3. -Gross Mismanagement ..................................................................................55

5.6.4. Code Enforcement...........................................................................................57

5.7. Capital Reserve Requirements.....................................................................................57

5.8. Effect of Violation of the Terms and Provisions of this Agreement after CoO Issued ...........................................................................................................................58 Section 6. DEVELOPER’S GENERAL REPRESENTATIONS AND WARRANTIES............58

6.1. Formation, Qualification and Compliance ..................................................................58

6.2. Execution and Performance of Project Documents.....................................................59 Section 7. DEFAULTS, REMEDIES, AND TERMINATION ...................................................59

7.1. Default Remedies ........................................................................................................59

7.1.1. Affordable Units within Apartments Component...........................................59

TABLE OF CONTENTS (continued)
Page
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4930-6338-0083v1/200348-0011

7.2. Institution of Legal Actions.........................................................................................60

7.3. Acceptance of Service of Process................................................................................60

7.4. Rights and Remedies Are Cumulative.........................................................................60

7.5. Inaction Not a Waiver of Default ................................................................................60

7.6. Applicable Law............................................................................................................60

7.7. Enforced Delay; Extension of Times of Performance.................................................60

7.8. Transfers ......................................................................................................................61

7.8.1. General Prohibition of a Transfer without City Consent; Covenant Not to Transfer Except in Conformity ............................................................61

7.8.2. City Consideration of Requested Transfer......................................................62

7.8.3. Permitted Transfers .........................................................................................62

7.9. Successors and Assigns ...............................................................................................63

7.10. Assignment by City .....................................................................................................63

7.11. Non-Liability of Officials and Employees of City ......................................................63

7.12. Relationship between City and Developer ..................................................................63

7.13. City Approvals and Actions ........................................................................................63

7.14. Real Estate Brokers .....................................................................................................63

7.15. Developer Requests and Submittals ............................................................................63 Section 8. RELOCATION............................................................................................................63

8.1. Developer Responsible for Relocation ........................................................................63

8.2. Indemnification by Developer Relating to Relocation ................................................64

8.2.1. Release ............................................................................................................64 Section 9. MISCELLANEOUS....................................................................................................65

9.1. Obligations Unconditional and Independent ...............................................................65

9.2. Notices .........................................................................................................................65

9.3. No Third Parties Benefited ..........................................................................................66

9.4. Binding Effect; Assignment of Obligations ................................................................66

9.5. Counterparts.................................................................................................................66

9.6. Prior Agreements; Amendments; Consents.................................................................66

9.7. Developer’s Payment and Reimbursement of City’s Third Party Costs .....................66

9.7.1. Third Party Costs Defined; Obligation ...........................................................66

9.7.2. Payment of Third Party Costs .........................................................................67

9.7.3. Exception to Payment of Third Party Costs....................................................67

9.8. Governing Law ............................................................................................................67

9.9. Severability of Provisions............................................................................................67

9.10. Headings ......................................................................................................................68

9.11. Interpretation ...............................................................................................................68

9.12. Conflicts.......................................................................................................................68

9.13. Time of the Essence.....................................................................................................68

9.14. Conflict of Interest.......................................................................................................68

9.15. Warranty against Payment of Consideration ...............................................................68

9.16. Nonliability of City Officials, City Officials and Employees .....................................68

ATTACHMENTS
iv
4930-6338-0083v1/200348-0011
ATTACHMENT NO. 1 SITE MAP
ATTACHMENT NO. 2 LEGAL DESCRIPTION OF THE SITE
ATTACHMENT NO. 3 MEMORANDUM OF AGREEMENT
ATTACHMENT NO. 4 CITY COVENANTS
ATTACHMENT NO. 5 REQUEST FOR NOTICE OF DEFAULT
ATTACHMENT NO. 6 DEVELOPER CERTIFICATE
ATTACHMENT NO. 7 CERTIFICATE OF CONTINUING PROGRAM COMPLIANCE ATTACHMENT NO. 8 [INTENTIONALLY OMITTED]
ATTACHMENT NO. 9 INCOME VERIFICATION
ATTACHMENT NO. 10 COMPLETION GUARANTY

1 4930-6338-0083v1/200348-0011

DENSITY BONUS AND AFFORDABLE HOUSING AGREEMENT
(16300 Euclid Street, Fountain Valley)
This DENSITY BONUS AND AFFORDABLE HOUSING AGREEMENT
(16300 Euclid Street, Fountain Valley) (“Agreement” or “DBAHA”) is dated for purposes of identification as of October 23, 2025 (“Date of Agreement”) and entered into by and between the CITY OF FOUNTAIN VALLEY, a California municipal corporation (“City”), and EUCLID & HEIL FV OWNER, LLC, a Delaware limited liability company (“Developer”). Capitalized terms used in this Agreement are as defined in Section 1.1 or otherwise stated or referenced herein.

R E C I T A L S
A. The City is obligated by State law and the Housing Element of the General Plan to plan for the community’s supply of low to moderate income housing to meet the City’s objectives to achieve its Regional Housing Needs Assessment (“RHNA”) allocation.

B. The 2021-2029 Housing Element, approved by Resolution No. 9853 adopted by the City Council of the City of Fountain Valley (“City Council”) on October 4, 2022 and certified by the State of California, Housing and Community Development Department (“State HCD”) on October 13, 2022, lists the Site as an opportunity site to meet the City’s RHNA allocation of 4,839 units. The Housing Element identifies the Site as an Underutilized Project in “Figure H 1 Housing Sites Inventory” and “Table H-22 Housing Sites Inventory” with 62 additional low income units.

C. In furtherance of the objectives of the Housing Element of the General Plan, the City has affirmed their intention to improve and increase the community’s supply of affordable housing available, both multifamily and senior units, at an affordable rent and affordable housing cost and covenanted for the longest feasible period.

D. Developer is the owner of certain real property, approximately 18.09 acres in size and generally located at 16300 Euclid Street, Fountain Valley, California (Assessor Parcel No. (APN) 144-111-01) (“Site”), as more particularly described in Attachment No. 2, Legal Description.

E. A Site Map of the Site is attached as Attachment No. 1 and fully incorporated by this reference.

F. The Site has a General Plan designation of High Density Residential and a zoning designation of R4 high density multiple dwelling. The maximum density in the R4 zone is 30 dwelling units per acre (“du/ac”).

G. Developer, through its representative EPD Solutions Inc., submitted an application to the City for a land use entitlement to construct, develop, and operate a 606-unit residential development on the Site that will be subdivided and allocated as to types of housing units including:
(i) 304 market-rate rental apartments in a five-story wrap building developed on a 3.31-acre parcel, (ii) 83 affordable rental apartments in a five-story building developed on a 0.78-acre parcel of which 82 (of 83) are the Affordable Units (inclusive of the Senior Apartments on the Affordable Parcel, if such occurs) that shall be covenanted for occupancy by qualified Low Income Households at an Affordable Rent (as the terms are defined herein) and one unit (1 of 83) will be designated as the Manager Unit for occupancy by the onsite manager household, and (iii) 219 townhome/triplex forPage 381 2 4930-6338-0083v1/200348-0011
sale, ownership units developed on a 14.07-acre parcel, of which (A) 183 units are for-sale, ownership townhomes, and (B) 12 triplexes (total 36 units) also are for-sale, ownership units (together, ”Project”).

H. The Affordable Units comprise the affordable housing component required by the Entitlement in compliance with and pursuant to the DBL and City’s Inclusionary Housing Program, of which 82 units shall be covenanted for occupancy by qualified Low Income Households, which may be referred to as the “Affordable Units”. Of the 219 for-sale, ownership units, the 183 townhomes may be referred to as the “Townhomes” and the 12 triplexes (36 units) may be referred to as the “Triplexes”.

I. Pursuant to the California Density Bonus Law, Government Code Section 65915, et seq. (“State DBL”) and the City’s implementing ordinance set forth in the Fountain Valley Municipal Code (“FVMC”) Chapter 21.08.050(a) (together, “DBL”), the Developer sought, and the City Council reviewed and approved, a density bonus to develop the Site at 34.5 du/ac. to allow for development on the Site of 606 total housing units that comprise the Project as described above in Recitals G. and H. and more fully described herein.

J. Pursuant to the DBL, as the owner of the Site, Developer sought, and the Project will exercise and evidence, a 27.5 percent (27.5%) density bonus option. Although the DBL allows for a 149-unit density bonus, Developer elected, and intends, to construct only 64 (of 149) density bonus units for a density bonus of 11.8 percent.

K. As noted, of the 606 total housing units to be developed on the Site, Developer shall cause to be constructed, completed, and operated eighty-two (82) Affordable Units; provided however, the parties acknowledge the Term Sheet described below in Recital Q. shows Developer and Affordable Developer have reached consensus about development and operation of the Affordable Units as the Senior Apartments on the Affordable Parcel, instead of onsite Affordable Units developed as a part of the overall Project.

L. By providing fifteen percent (15%) of its base units designated and covenanted as Affordable Units, both the DBL and Inclusionary Housing Program are met (as further described herein).

M. The Project includes the following land use applications in accordance with the Fountain Valley Municipal Code (FVMC) (together, “Entitlement”):
• Per FVMC Chapter 21.44, a Precise Plan is required for the development of any proposed structures in the City, except for structures in the R1 zoning district, which for the Project on the Site is Precise Plan No. 579 approved by the City’s Planning Commission by Resolution No. 25-11 on June 25, 2025.
 Per FVMC Chapter 21.36, a Conditional Use Permit is required for any use listed in Chapters 21.04 through 21.14, which includes multi-family dwellings in the R4 zoning district, which for the Project on the Site is Conditional Use Permit No. 1930 approved by the City’s Planning Commission by Resolution No. 25-11 on June 25, 2025.
 Per FVMC Chapter 21.72, a Tentative Parcel Map is required for the subdivision of four or fewer parcels, which for the Project on the site is Tentative Parcel Map

3 4930-6338-0083v1/200348-0011
No. 2024-103 approved by the City’s Planning Commission by Resolution No. 25-11 on June 25, 2025.
• Acknowledgement and Approval of a Density Bonus and Affordable Housing Agreement (“DBAHA”) for the Project, which is the subject of this Agreement. • Approval by the City of an Addendum to the Final EIR for the 2045 Fountain Valley General Plan (State Clearinghouse No. 2022100563).

N. This Agreement implements, in part, the Entitlement conditions of approval including the requirement for the City and Developer to enter into this Agreement that will evidence of record Developer’s intention and obligation to reserve and covenant fifteen (15%) of its base units for use, tenancy, and occupancy by Low Income Households and Lower Income Households that do not exceed eighty percent (80%) of the area median income for Orange County (“AMI”) as the term “Low Income” is defined in California Health and Safety Code (“HSC”) Section 50093 and the term “Lower Income” is defined in HSC Section 50079.5 and California Code of Regulations (“CCR”) Title 25 Section 6928, and at an affordable housing cost and affordable rent as defined and pursuant to HSC Sections 50052.5 and 50053 (respectively, “Affordable Housing Cost” and “Affordable Rent”), the foregoing terms shall apply to the Project pursuant to the conditions of approval for the Entitlement and as defined in this DBAHA.

O. Pursuant to the State DBL and FVMC Chapter 21.08.050(a), owners of residential projects that include certain levels of affordable housing are entitled to apply for and receive a density bonus and additional incentives in order to facilitate the economic feasibility of those projects.

P. The DBL allows one incentive or concession and unlimited waivers or reductions for the type of development proposed in which a certain number of the “base” units are restricted for use and occupancy by qualified Low Income Households. Developer requested and has been granted as a part of the Entitlement the following:
 Concession #1 – Reduction in private open space requirement of 100 SF per unit of open space and with no dimension less than 10 feet as established in “FVMC 21.08.040 Table 2-3 Residential District General Development Standards” to allow Unit A2 within the senior affordable project to not include a private balcony/patio/deck, 0 to 82 SF private balcony/patio/deck for the senior affordable units with minimum dimensions less than 10 feet, and allow for 42 to 72 SF private balcony/patio/deck for the market rate multi-family units with minimum dimensions less than 10 feet. Application of the municipal code requirement for private open space would make the project financially infeasible:
• Adding a 100 SF private balcony/patio/deck to Unit A2 or additional SF for a balcony/patio/deck for the senior affordable and market rate apartments would add additional materials and construction costs to the project. • Alternatively, reducing the livable SF of the units in order to accommodate the minimum 100 SF private open space requirement would reduce the livable square footage of the units which will reduce the per square foot rentable area for the project and make the project financially infeasible.

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 Waiver #1 – An increase from the maximum building height of 35 ft./3-story as stated in “FVMC 21.08.040 Table 2-3 Residential District General Development Standards” to allow for 56 ft. 10 in./5 stories and 67’-5” to the top of the elevator tower for the market rate apartment and 58 ft. 10 in./5 stories for the senior affordable apartment. Application of the code maximum height requirement would make construction of the market rate and affordable housing units physically infeasible within the proposed site footprints; the additional height increase would allow for the necessary additional unit stacks in the building and provide floor plates that can accommodate the increase in density. Therefore, a waiver is required in order to physically construct the units on the site and within the development footprint.  Waiver #2 – An increase in building site coverage from a maximum of 40 percent as established in “FVMC 21.08.040 Table 2-3” to allow 41.3 percent total building coverage for the entire site, 71.6 percent lot coverage for the market rate apartment building site, and 77.1 percent lot coverage for the senior affordable project is required. The project would be physically infeasible to construct without this waiver as additional developable area is needed in order to provide for an increase in density and inclusion of affordable housing units.  Waiver #3 – Increase the maximum number of units for Lot 2 the market rate apartment site and Lot 3 the senior affordable site, from 1 unit per 1,435 SF to allow for 304 units or 3 units per 1,435 SF on Lot 2, and 83 units or 3.6 units per 1,435 SF on Lot 3.

The municipal code maximums would physically prevent construction of 304 market rate units and 82 Affordable Units plus one (1) Manager Unit unrestricted as to rent on the Site and prevent the inclusion of the affordable housing units. Additionally, the necessity of this waiver request stems from the increased density permitted pursuant to the State Density Bonus Law by constructing the 82 Affordable Units.
 Waiver #4 – A waiver from Inclusionary Housing Program, FVMC 21.17.060(b)(2), requiring that affordable units must be developed within the same housing type and thereby to allow the Senior Affordable Units to be developed in a standalone building, rather than within the same housing types as the 523 market-rate ownership and rental units. Application of the requirement that the Affordable Units be within the same housing type would not be physically feasible due to the Project’s design, which includes the separate Senior Apartments on the Affordable Parcel per the requirements needed for an affordable housing developer to secure project financing.
 Reduction #1 – A decrease in setbacks, as established in code section “FVMC 21.08.040 Table 2-3,” to allow a 0 ft. side setback at the senior affordable apartment property line and a 10 ft. rear setback for the senior affordable and market rate apartment site, a 0 ft. side and rear setback for the Affordable Units (inclusive of Senior Apartments on Affordable Parcel) is required to allow for additional developable areas in order to physical construct the market rate ownership and rental units and the Senior Affordable Units. In order for Developer to partner with the Affordable Developer and secure project financing for the Senior Apartments, the separate lawfully subdivided Affordable Parcel is needed. Therefore, where the side and rear setbacks are measured from by code versus the setbacks provided from property lines would make construction of the Project physically infeasible based on the lot configurations.  Reduction #2 – A reduction from FVMC 21.08.040, Table 2-4’s minimum unit size for one-bedroom units of 750 SF, to allow for one-bedroom units ranging from 600-609 SF for the junior one-bedroom market rate units. Application of the minimum one-bedroom unit size per

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FVMC to the market-rate junior one-bedroom units would make the construction of 304 market-rate units physically infeasible within the proposed site footprint. The smaller junior one-bedroom units are necessary to create additional developable area, allowing for increased density and the inclusion of the Affordable Units. Therefore, a waiver is required to physically accommodate the proposed unit count within the development footprint.  Reduction #3 – A reduction from Inclusionary Housing Program requirement, FVMC 21.17.060(b)(1), that the Senior Apartments (if such project occurs as the Affordable Units) have an average square footage of at least 85% of market-rate units within the same housing types with the same bedroom count, to allow for the one- and two-bedroom Senior Apartments to have an average square footage of at least 78% of the market-rate twobedroom units. Application of the unit square footage minimum for the two-bedroom Senior Apartments would require significantly larger senior unit sizes than is typical for low income housing tax credit (“LIHTC”) financed Senior affordable housing projects that only require a minimum of 700 SF for two-bedroom units. Increasing the size of the two-bedroom Senior Apartments would reduce the number of Affordable Units that can be constructed.

Additionally, applying the affordable unit square footage minimum would make the construction of the 82 Senior Apartments, and one Manager Unit, physically infeasible within the proposed site footprint. This would ultimately prevent the inclusion of affordable housing on the Affordable Parcel. The smaller two-bedroom Senior units are necessary to create additional developable area, allowing for increased density and the inclusion of Senior Apartments as the Affordable Units. Therefore, a reduction is required to physically accommodate the proposed unit count within the overall development footprint, inclusive of the Affordable Parcel.  Reduction #4 – A reduction from Inclusionary Housing Program, FVMC 21.17.060(b)(2), requiring the same bedroom count ratio as the market rate units for the Senior Apartments (if such project occurs). The requirement that the Senior Apartments need to have the same bedroom count ratio as the market rate units would physically limit the total number of affordable units that could be constructed within the standalone Senior Apartments building. Increasing the number of two-bedroom units to provide the same bedroom count ratio as the market rate apartments would physically limit the total number of Affordable Units that could be developed within the fixed building footprint on the Affordable Parcel. Furthermore, the Affordable Units are intended to be marketed to Low Income Households, in particular Senior Low Income Households if the Senior Apartments proceed, thereby reducing the demand for two-bedroom units. Therefore, deviation from the market rate apartment bedroom count ratio is necessary in order to develop the maximum number of affordable units.

Q. By that certain “Term Sheet“ for Euclid+Heil Senior Affordable Apartment Homes dated as of August 15, 2025 and executed on August 27, 2025 by and between National Community Renaissance of California (as “Affordable Developer” therein) and Euclid & Heil FV Owner, LLC (as “Master Developer” therein), such entities agreed to the basic terms and conditions by which Affordable Developer will develop the Affordable Units in that certain “standalone” project referred to as the “Senior Apartments” on the separate Affordable Parcel, which is the affordable housing component of the overall Project, subject to that certain Step-in Clause described therein. Developer acknowledges that the City is not a party to such Term Sheet or other implementing documents, if any, and the requirement under the Entitlement and this Agreement for Developer to cause construction, completion, and operation of the Affordable Units is and shall remain Developer’s contractual obligation until the first to occur of: (i) issuance of a final Certificate of Occupancy by the City’s Building Official for the construction and completion of the Senior Apartments, or

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(ii) inclusion of 82 Affordable Units within the greater Project on the Site. As an ancillary point, Developer may satisfy the inclusionary housing obligation by payment in full of the In-Lieu Fees required under the City’s Inclusionary Housing Program for the Project. In this regard, and nonetheless, in the event Developer elects to pay all or a portion of the required In-Lieu Fees if the Senior Apartments component is not undertaken by Affordable Developer, then Developer remains obligated under this Agreement, the Entitlement and the DBL to provide onsite the mandatory number of Affordable Units required thereunder, which is ten percent (10%) Low Income Affordable Units pursuant to the DBL. Developer acknowledges and agrees that Affordable Units required by the DBL cannot be satisfied by payment of In-Lieu Fees and Developer must cause to be constructed, completed, and operated the Affordable Units available at an Affordable Rent to Low Income Households covenanted for the 55-year Affordability Period. In the event such occurs, this Agreement and the City Covenants shall be amended to conform to the facts of how many units of the Project are Affordable Units required by the DBL and how the City’s Inclusionary Housing Program will be satisfied either via payment of In-Lieu Fees or inclusion of Low Income Affordable Units onsite.

R. As described and defined herein, the outside date for Closing of Financing/Affordable Developer is two (2) years from the issuance of the Initial City Permit, plus two (2) years to meet the outside date for Completion/Final CoO for Affordable Units/Affordable Developer, which in total is up to four years for Affordable Developer to complete the Affordable Units. However, in the event that Affordable Developer does not timely meet the outside date for Closing of Financing/Affordable Developer, then Developer has and is limited to the following one (1) year period, i.e., the Closing of Financing Deadline/Developer or Affiliate, for Developer to commence construction of the Affordable Units or timely cause covenanting of 82 Affordable Units within the multifamily Apartments Component of the Project. Further, if Developer timely meets the one-year period for the Closing of Financing Deadline/Developer or Affiliate, then Developer has one (1) additional year to complete construction of the Affordable Units, or avail the alternative described in Section 7.1.1(b) to cause covenanting of 82 Affordable Units within the multifamily Apartments Component of the Project. Therefore, cumulatively, commencing from the date of issuance of Initial City Permit until the fourth (4th) anniversary of that date, there is an up to four-year period to complete construction of the Affordable Units, or up to three (3) years to avail the alternative to cause covenanting of 82 Affordable Units within the multifamily Apartments Component of the Project.

S. Under the Entitlement, Developer shall enter into this Agreement with the City prior to issuance of the Initial City Permit for the Project on the Site.

T. Pursuant to this Agreement and prior to the issuance of the Initial City Permit for the overall Project, a Memorandum of Agreement, Attachment No. 3, evidencing this DBAHA and the City Covenants, Attachment No.4, both attached hereto and fully incorporated by this reference shall each and both shall be recorded against the Site in the Official Records, County of Orange, State of California (“Official Records”) as senior, non-subordinate covenants running with the land for the 55-year Affordability Period as required by the Entitlement. In no event shall the Memorandum of Agreement or the City Covenants be made junior or subordinate to any other encumbrances, including deeds of trust, or other instruments providing financing, whether construction, permanent, equity or other financing, for the construction, ownership, and/or operation of the greater Project unless and until issuance of a final Certificate of Occupancy by the City’s Building Official for the construction and completion of the eighty-two (82) Affordable Units plus one (1) Manager Unit.

Developer’s obligation to cause completion of the Affordable Units may occur on the duly

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subdivided separate Affordable Parcel as undertaken by the Affordable Developer pursuant to the Term Sheet and implementing agreement(s). In such event, the City will prepare and cause recording of a termination of this Agreement, the Memorandum of Agreement, and City Covenants as encumbrances against the market-rate residential parcels of the Project; nevertheless, this unrecorded Agreement along with the recorded Memorandum of Agreement and City Covenants, shall remain in full force and effect as to the Affordable Units whether developed on the Affordable Parcel or otherwise within the overall Project.

U. Instead of fifteen percent (15%) Affordable Units, Developer may pay the City the full amount of In-Lieu Fees required under the City’s Inclusionary Housing Program.

Notwithstanding the foregoing, Developer acknowledges and agrees that the number of Affordable Units required by the DBL cannot be satisfied by payment of In-Lieu Fees and Developer remains obligated to cause construction, completion, and operation of the DBL-required Affordable Units available at an Affordable Rent to Low Income Households for the 55-year Affordability Period. In the event such occurs, this Agreement and the City Covenants shall be amended to conform to the facts of how many units of the Project are Affordable Units required by the DBL and how the City’s Inclusionary Housing Program will be satisfied by Developer either via payment of In-Lieu Fees or inclusion of Low Income Affordable Units onsite.

V. Inclusion, designation and completion of the Affordable Units in the separate Senior Apartments development on the Affordable Parcel, or otherwise within the greater Project, shall not cause or exacerbate racial, ethnic, or economic segregation and shall affirmatively further fair housing.

W. The Unit Mix by type and bedroom count for the Senior Apartments shall include:
 Seventy-one (71) 1-bedroom units; and
 Twelve (12) 2-bedroom units; and, 1 of 12 of the 2-bedroom units will be designated for occupancy by and for the Manager Unit.)
X. As of the Date of Agreement, Developer represents to City that Euclid & Heil FV Owner, LLC is a joint venture with two members each holding fifty percent (50%) of the Site comprised of (1) SOF - FV, LLC, a Delaware limited liability corporation (“SOF”), and (2) Lennar Homes of California, Inc. (“Lennar”).

Y. As background facts, Developer represents to the City that concurrent with or prior to issuance of the Initial City Permit, SOF intends to convey its ownership share of the Site to Lennar or its Affiliate, then Lennar will undertake and complete (i) all grading of the overall Site for all residential components of the Project, (ii) installation of all utilities on the Site for the entire residential Project, albeit only “stubbing of utilities” to the Apartments multifamily parcel and Affordable Parcel, and (iii) all other site preparation necessary for construction of all components of the Project (together, “Site Preparation”). Upon Lennar’s completion of Site Preparation, Lennar will convey back to SOF or Developer the land/parcels on which the market-rate Apartments and the Senior Apartments will be constructed and operated. Then, SOF or Developer will grant to Affordable Developer an option to acquire the Affordable Parcel, which will provide Affordable Developer, as applicant to TCAC and CDLAC, the “site control” required under the Tax Credit Rules and CDLAC Regulations in connection with application(s) to TCAC for a

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reservation of Tax Credits and to CDLAC for a bond allocation that will be part of the financing to develop the Senior Apartments.

Z. In further description of Recitals W. and X. above, Developer represents that Euclid & Heil FV Owner, LLC is a joint venture between SOF – FV, LLC (i.e., Shopoff entity) and Lennar Homes of California, Inc. (Lennar entity). Developer intends to convey the entire Site, via an option agreement, to Lennar, as a member of such joint venture LLC entity. Lennar will be responsible for Site Preparation. After Site Preparation is complete, Lennar will convey back to SOF (or Developer) the multifamily Apartments parcel and the Affordable Parcel. SOF will then grant to Affordable Developer the option to acquire the Affordable Parcel. Thereby and thereafter, SOF will develop the market-rate multifamily Apartments, Affordable Developer will develop the Senior Apartments, and Lennar will develop the for-sale Townhomes and Triplexes parcels.

AA. The Project is intended to further implement the City’s goals and objectives under the City’s Housing Element of the General Plan, including without limitation Program Category #1 by promoting and encouraging the development of a variety of housing opportunities to accommodate current and projected households in Fountain Valley, which in this case includes the Affordable Units. The Project meets policies 1.1, 1.2 and 1.3 of Goal #1 by providing housing to assist the City toward meeting its RHNA allocation of 4,839 residential units and 2,093 low income units by the year 2029, provide housing opportunities for an income level based on the proposed housing type and density and has adequate infrastructure and public services to serve the project, respectively.

BB. This Agreement is in the vital and best interest of City, the Fountain Valley Housing Authority (as an intended third party beneficiary), and the health, safety and welfare of its residents and entire Fountain Valley community.

NOW, THEREFORE, for and in consideration of the mutual promises, covenants, and conditions herein contained, City and Developer agree as follows:

Section 1. DEFINITIONS AND INTERPRETATION.

1.1. Defined Terms. As used in this Agreement (and in all other Project Documents, unless otherwise defined), the following capitalized terms shall have the following meanings:
“Affiliate” means any person or entity directly or indirectly, through one or more intermediaries, controlling, controlled by or under common control with Developer, which shall include each of the constituent members of Developer’s limited liability company. The term “control,” as used in the immediately preceding sentence, means, with respect to a person that is a corporation, the right to exercise, directly or indirectly, at least fifty percent (50%) of the voting rights attributable to the shares of the controlled corporation, and, with respect to a person that is not a corporation, the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of the controlled person.

In the event, Developer assigns, and Affordable Developer assumes, Developer’s obligation to cause development and operation of the Affordable Units as the Senior Apartments in a Standalone Affordable Project (defined herein), then the term Affiliate will include an Affiliate of the Affordable Developer, National Community Renaissance of California, a nonprofit public benefit corporation.

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“Affordable Developer” means and refers to National Community Renaissance of California, a nonprofit public benefit corporation, which entity is the subject of the certain Term Sheet for Euclid+Heil Senior Affordable Apartment Homes dated as of August 15, 2025 and executed on August 27, 2025 by and between National Community Renaissance of California (as Affordable Developer therein) and Euclid & Heil FV Owner, LLC (as “Master Developer” therein and Developer in this Agreement), pursuant to which such entities agreed to the basic terms and conditions by which Affordable Developer will develop the Senior Apartments on the Affordable Parcel as the mandatory affordable housing component of the overall Project, subject to that certain Step-in Clause described therein.
“Affordable Parcel” means that certain duly subdivided separate legal parcel on which the Senior Apartments are intended to be constructed, completed and operated by the Affordable Developer.
“Affordable Rent” means the monthly housing cost (excluding any supplemental rental assistance from the State of California, the federal government or any other public agency) not in excess of the amount that may be charged by Developer for the Affordable Units leased to qualified Low Income Households in conformity with the Prescribed Rent Level and not to exceed HSC Sections 50052.5 and 50053 for Lower Income Households who also qualify as Senior Low Income Households. This monthly housing cost means the maximum amount to be charged by Developer and paid by the Low Income Households occupying the Affordable Units. Further, the household income for Low Income Households leasing Affordable Units shall not exceed the income standard set forth in HSC Section 50079.5 and Affordable Rent shall not exceed the standard and calculations set forth in HSC Sections 50052.5 and 50053. (A) In addition, the term Affordable Rent includes the total of monthly payments by the tenants of the Senior Apartments for (a) use and occupancy of an Affordable Unit and facilities associated therewith, (b) any separately charged fees or service charges assessed by Developer that are required of all tenants of the Affordable Units, other than security deposits, (c) a reasonable allowance for utilities not included in (a) or (b) above, including garbage collection, sewer, water, electricity and gas, as set annually by the Orange County Housing Authority pursuant to 24 CFR Section 5.609 et seq. and (d) possessory interest, taxes or other fees or charges assessed for the use of the Affordable Units and facilities associated therewith by a public or private entity other than Developer.
(B) In practice, calculation of affordable rent necessitates a two-step process. Step 1 is qualification of the tenant as a Low Income Household with gross income at or below eighty percent (80%) of AMI based on the actual size of the household per HSC §50052.5(b)(3); and, Step 2 is the calculation of monthly housing cost/rent based on a presumed household size for the number of bedrooms in the unit. Affordable Rent for Lower Income Households renting an Affordable Unit generally equates to the product of thirty percent times sixty percent (30% x 60%) of AMI adjusted for household size appropriate for the unit as set forth in HSC Sections 50052.5 and 50053(b)(1), however, this definition of Affordable Rent is expressly subject to the next paragraph. (i) Notwithstanding HSC Section 50053(b)(1) cited in paragraph (B) above, pursuant to State HCD, Housing Accountability Unit, Housing Policy Development (“HAU”) review of the 606-unit greater Project, the City has been directed to, and will apply HSC Section 50053(b)(2), but only in the event that Affordable Developer causes construction of and operates the Affordable Units in the standalone affordable housing Senior Apartments (with one Manager Unit)