City Council Study Session
June 18, 2024
Housing Incentive Overlay Zone (HIOZ)
Agenda
What is the HIOZ?
Selecting parcels for inclusion in the HIOZ
Potential development typologies studied for the HIOZ
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.
Selecting parcels for the HIOZ
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
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
Tier 4: Economic Viability
Goal: Target parcels that are most likely to redevelop given their current underutilization of land.
Selecting parcels for the HIOZ
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
Tier 2: Outside of Local Hazard Zones.
Goal: Discourage development within known local hazard zones
Selecting parcels for the HIOZ
Tier 1: Adjacent to Local Amenities.
Goal: Encourage residential development within easy access of community amenities.
Selecting parcels for the HIOZ
This model screened and scored every parcel in the City.
Selecting parcels for the HIOZ
Then, select parcels were removed, such as:
Parcels that scored below screening average
Residential and mixed-use
Public uses (e.g., schools, open space, City property)
Infrastructure uses (e.g., rail, water wells, substations) Historic uses
Currently entitled
Lot area <15,000 SF (too small for affordable housing)
High-performing commercial properties, national retail chains Other (e.g., data inconsistency)
759 parcels
Selecting parcels for the HIOZ
Total of 759 HIOZ parcels reflects:
Removal of 20 high-performing commercial properties identified by Kosmont in 2023 at the request of City Council. 20 commercial properties deemed “high-performing” by Kosmont in 2023.
Selecting parcels for the HIOZ
Total of 759 HIOZ parcels reflects:
Removal of 20 high-performing commercial properties identified by Kosmont in 2023 at the request of City Council.
And addition of 4 properties (Imperial & Harbor) that requested to be included in the HIOZ in 2022.
Aerial plan of 4 parcels at Imperial and Harbor
Selecting parcels for the HIOZ
To calculate the total potential yield of dwelling units within the HIOZ, it was assumed* that:
All parcels within 100 feet from R-1 accommodate 20 du/ac, Parcels <1 acre and >100 feet from R-1 accommodate 35 du/ac Parcels >1 acre and >100 feet from R-1 accommodate 55 du/ac *These assumptions are consistent with the yield calculations in the Housing Element.
Realistic Capacity of HIOZ Sites (759 Parcels)
Size/Location Category
Total Acreage
Realistic Density
Total Units
<1 ac and < 100 ft from R-1
81.45 20
1,629
>1 ac and <100 ft from R-1
174.20
20 3,484
<1 ac and >100 ft from R-1
97.27 35
3,404
>1 ac and >100 ft from R-1
240.59
55 13,233
593.52
-
21,750
Realistic Capacity of HIOZ Sites (300 parcels), Housing Element Update, January 2024 Draft Realistic Capacity of HIOZ Sites (759 parcels), Dudek, June 2024
Potential development typologies studied for the HIOZ
Townhomes (~20 du/ac)
Multi-Plex (~30 du/ac)
Walk-Up (~50 du/ac)
Wrap (~75 du/ac)
Drafting development standards for HIOZ and Multi-Family Residential 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
Drafting development standards for HIOZ and Multi-Family Residential Where it applies:
New Ch15.23 (HIOZ)
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)
Creating a new Ch.15.23 (HIOZ)
Ch.15.23 (HIOZ) is new to the Fullerton Municipal Code. It:
Establishes provisions for the HIOZ, including definitions and procedures Requires affordable housing
“At least 10% of the total units in a HIOZ project shall be reserved for households of moderate, lower, very low, and/or extremely low income…” Requires mixed-use
“For projects bordered on one or more sides by a Major Arterial and with a project site of at least 1 acre shall be required to provide both residential and ground floor commercial uses as part of a mixed-use development.” Refers to Ch.15.17.010 for applicable development standards
Overhauling Ch15.10 and Ch15.12
Incorporate applicable multi-family residential standards from Ch15.10 (Building Types) and Ch15.12 (Frontage Types) into Ch15.17.070 (Site Development Standards for Multiple-Family and Mobile Home Zone Classifications).
Content remaining in Ch15.10 and Ch15.12 will resultingly be slim and only applicable to single-family residential.
Streamlining 15.17.070
De-emphasize current “form-based” approach
Instead, focus on core design and development topics:
Building Standards
Open Space Standards
Parking Standards
Site Standards
BACKUP SLIDES
Potential unit yield within the HIOZ
To calculate the maximum potential yield of dwelling units within the HIOZ (for purposes of CEQA), a maximum density of 60 du/ac was applied to each HIOZ parcel, resulting in a maximum total of 35,611 dwelling units. 759 parcels
35,611 dwelling units*
*hypothetical maximum as identified in the May 2024 Draft EIR
CEQA Alternatives
The May 2024 Draft EIR identifies 3 alternatives to the HIOZ:
No project
Reduced sites (reduces the number of parcels to 751, removing 8 commercial properties deemed economically viable) Reduced density (reduces the maximum density to 45 du/ac from 60 du/ac across 759 HIOZ parcels) HIOZ
759 total parcels
35,611 dwelling units
60 du/ac
Alternative 1 – No project
0 total parcels
0 dwelling units
n/a
Alternative 2 – Reduced Sites
751 total parcels
32,234 dwelling units
60 du/ac
Alternative 3 – Reduced Density
759 total parcels
26,709 dwelling units
45 du/ac
A. Building Standards
Lot/Parcel
Setbacks
Step-Backs
Height
Façade Articulation
Ground Floor
Façade break. A building façade with frontage along a street shall not span a continuous horizontal length greater than 150 feet unless it includes at least one break or interruption in the façade with a minimum length of 20 feet and minimum depth of 5 feet, as illustrated in Figure X.
B. Open Space Standards
Private Open Space
Common Open Space
Landscaping
C. Parking Standards
Vehicular Parking
Bicycle Parking
Access and Layout
D. Site Standards
Access and Circulation
Trash, Storage, and Mechanical Equipment
Projects Greater than 5 Acres in Site Area