City Council Study Session
September 20, 2022
Housing Incentive Overlay Zone (HIOZ)
Agenda
2 What is the HIOZ?
Selecting parcels for inclusion in the HIOZ
Potential development typologies studied for the HIOZ
Suggested approach to drafting development standards for the HIOZ (and Citywide multi-family residential developments)
What is the HIOZ?
HIOZ is a Housing Incentive Overlay Zone.
It allows a property owner to develop housing on a non-residential parcel within HIOZ if a minimum percentage of affordable units are included.
It does not change the existing zoning classification of a parcel. Nor does it require the development of housing. Instead, it layers a housing zoning classification on top of existing zoning.
The property can continue operating as it does today, or it can be redeveloped/ improved within current zoning regulations. Or with HIOZ, it can be redeveloped as housing. 5 Selecting parcels for the HIOZ
6 In 2020, the City identified 19 preliminary sites to study for the HIOZ.
After discussion with City staff and the Housing Champions, it was decided to expand the screening to all non-residential parcels Citywide.
Selecting parcels for the HIOZ
7 Methodology: A rigorous screening and scoring process using data-based, objective criteria.
Intent: Identify parcels that can best accommodate housing and offer the greatest benefit to future residents, existing neighbors, and the City as a whole.
Selecting parcels for the HIOZ
7 Tier 4: Economic Viability
Goal: Target parcels that are most likely to redevelop given their current underutilization of land.
Selecting parcels for the HIOZ
7 Tier 3: Within “Opportunity Areas”
Goals:
End exclusionary housing practices and promote Affirmatively Furthering Fair Housing (AFFH) policies set by the State.
Promote smart, sustainable growth by clustering homes within transit-served areas Prevent land use incompatibility between residential and non-residential uses.
Selecting parcels for the HIOZ
7 Tier 2: Outside of Local Hazard Zones.
Goal: Discourage development within known local hazard zones
Selecting parcels for the HIOZ
7 Tier 1: Adjacent to Local Amenities.
Goal: Encourage residential development within easy access of community amenities.
Selecting parcels for the HIOZ
10 This model screened and scored every parcel in the City.
Selecting parcels for the HIOZ
10 Then, select parcels were removed, such as:
Residential and mixed-use
Public uses (e.g., schools, open space, City property)
Infrastructure uses (e.g., rail, water wells, substations) Historic uses
Parcels that scored below screening average
Other (e.g., currently entitled, national chains, data inconsistency, etc.) 847 parcels
Added 4 new parcels (Imperial & Harbor) per property owner request.
Selecting parcels for the HIOZ
10 Further, for inclusion in HEU site inventory, parcels that were less than 15,000 sf in area were also removed.
At a standard density of 30 du/ac, a parcel of 15,000 sf can accommodate 10 dwelling units, where at least 1 unit (10%) is affordable. 367 parcels
Added 4 new parcels (Imperial & Harbor) per property owner request.
Potential unit yield within the HIOZ
367 parcels
24,491 potential units
Added 4 new parcels (Imperial & Harbor) per property owner request.
To calculate the total potential yield of dwelling units within the HIOZ, it was assumed that:
Parcels > 1 acre could accommodate up to 45 du/ac, and
Parcels < 1 acre could accommodate up to 30 du/ac.
Parcels less than 15,000 SF were excluded from the calculation since they would be unable to meet the minimum 10% affordable housing requirement.
Potential development typologies studied for the HIOZ
10 Townhomes (~20 du/ac)
Multi-Plex (~30 du/ac)
Walk-Up (~50 du/ac)
Wrap (~75 du/ac)
Suggested approach for development standards for HIOZ and Multi-Family 10 Goal:
Incentivize the development of housing
Reduce regulatory barriers
Promote good design
Objectives:
Create new development standards that are clear, concise, effective, objective (per State mandate), and easy to use/understand
Suggested approach for development standards for HIOZ and Multi-Family 10 Where it applies:
Overhauling Ch15.10 (Building Types) and Ch15.12 (Frontage Types) Streamlining Ch15.17.070 (Site Development Standards for Multiple-Family and Mobile Home Zone Classifications) Elements to regulate:
Site, building, open space, and parking
Requested Feedback and Input
10 Are there any locations/parcels that should be excluded from or included into the draft HIOZ boundaries? Suggested approach to responding to parcel inclusion requests on a one-off basis (pre- and post- adoption of HIOZ)? Anything related to building types and design that staff should keep in mind as context appropriate development standards are being drafted?