Special Meeting
December 10, 2024
Fullerton 6th Cycle Housing Element and HIOZ Adoption
1 Public Hearing Continuation
Public Hearing closed on November 19, 2024 and item was continued on both November 19th and December 3rd.
Staff to report based on City Council requests on December 3, 2024:
Refine HIOZ by limiting parcels to those necessary for the Housing Sites Inventory Consider the removal of parcels along Chapman Avenue and Commonwealth Avenue between Euclid and Raymond Avenue.
Establish a maximum height limit of 65 feet.
Increase the affordable housing requirement to 20%
2 Housing Element Overview
Fullerton’s Housing Element Update is necessary to comply with state requirements based on housing law.
The Housing Element is a chapter of the City’s General Plan which is a long-range planning document (10-20 years or more) and must be adopted for compliance.
It is the City’s blueprint for identifying how we will meet future housing needs for all income levels.
Fullerton has been assigned a Regional Needs Housing Assessment allocation of 13,209 new units over 8 years.
New projects cannot benefit from the overlay, incentives, or code changes until the Housing Element and HIOZ are approved and deemed compliant by HCD.
CA Department of Housing and Community Development (HCD) enforces state housing laws and compliance related to the Housing Element. 3 HIOZ – A Tool for Compliance
The Housing Incentive Overlay Zone (HIOZ) is a policy tool to enable residential development on a non-residential parcel within the HIOZ. It is de-regulatory in nature.
HIOZ does NOT require development.
HIOZ does NOT change the underlying land use of commercial or industrial; it is a layer.
HIOZ does require an affordability component.
New Development Standards:
Requires Mixed-Use for Larger Parcels
100% retention of commercial space unless justified through certified economic analysis.
Streamlines Standards & Reduces Delays
Provides necessary capacity to meet HCD figures
4 HIOZ Has Adjusted Based on Council Direction
The parcel count for HIOZ was set at 1,253 Parcels in 2021 based on HCD comments to increase parcel count from the original 19 parcels.
The Revised Parcel Count for HIOZ on 11/19/24 was at 723 Parcels.
The Revised Parcel Count today from the December 3rd meeting direction is 205 parcels, resulting in a reduction of 518 parcels. 4-Tiered Selection Criteria For Parcels
Access to Amenities
Outside of Hazard Zones
Within CA Opportunity Zone
Development Feasibility
5 11/19/2024 – HIOZ (HE sites only)
235 parcels / 262 acres
5,243 units
(min. 20 du/ac)
11/19/2024 - HIOZ Modified Alt 2
723 parcels / 491 acres
15,731 units
(max. 60 du/ac)
9,823 units
(min. 20 du/ac)
29,468 units
(max. 60 du/ac)
16,707 units
(realistic)
Dwelling Unit Yield Assumptions
11,217 units
(realistic)
HCD approved
Realistic Buildout Methodology (55du/acre)
12/3/2024 - HIOZ (HE sites only minus 9 parcels)
226 parcels
5,120 units
(min. 20 du/ac)
15,360 units
(max. 60 du/ac)
11,058 units
(realistic)
12/10/2024 - HIOZ (HE sites only minus 30 parcels)
205 parcels / 236 acres
4,714 units
(min. 20 du/ac)
14,143 units
(max. 60 du/ac)
10,360 units
(realistic)
Meeting the RHNA with Reduction
7 Updated Sites Inventory Map (205 parcels -12/10/24)
8 Sites Inventory Map Option 1 (12/3/24)
9 Sites Inventory Map Option 2 (12/3/24)
10 Guidelines per Council Direction at Public Hearing and Public Comments HIOZ parcels are required to include Mixed-Use considerations to preserve potentially viable retail on Major and Primary Arterials.
Reduction in commercial will have to be analyzed through a certified market study.
Increased affordability from 15% to 20%.
At 15%, the recommendation was 10% allocated to low, very low, extreme or acute income levels and 5% allocated to moderate income levels, through a Minor Site Plan approval with an incentive for 20%.
Change to 20% requirement on all HIOZ projects at moderate to acutely low incomes level range.
Maximum height: 65’
Maximum height 100ft from R-1: 35’- 40’ based on grade differential Major Site Plan: Required for projects that:
Exceed the height limit
Seek to reduce the affordability requirement
Propose alternative means to satisfy the affordable housing requirement.
Requires Planning Commission approval.
11 Meeting the RHNA
Any residential development during the planning period can be credited towards meeting the RHNA (does not need to be on the sites in the Housing Element).
No Net Loss (SB 166): A jurisdiction must maintain adequate sites to accommodate its remaining unmet RHNA at all times throughout the planning period.
City must monitor residential development annually and promote available sites for development with a potential re-zone effort if we are at risk of not meeting our RHNA certification.
Zoning Code Amendments
To implement the HIOZ, three key sections of the Zoning Code are amended:
New Chapter 15.23 (Housing Incentive Overlay Zone)
Supplemental – Inclusionary Housing Alternative Option
New Chapter 15.18 (Mixed-Use Development Standards)
Updated Section 15.17.070 (Development Standards for HIOZ only)
Next Steps
2 Approve Zoning Ordinance Amendment to Title 15 of the Fullerton Municipal Code for the Housing Incentive Overlay Zone Program and Fullerton Zoning Map Certify Environmental Impact Report for the Fullerton Housing Incentive Overlay Zone Program Provide final direction for the Housing Sites Inventory to adopt the 6th Cycle Housing Element.
Given the time required to update the Housing Element documents, calculations, and maps, the adoption of the Housing Element will be scheduled for January 7, 2024.
15 Questions?
16 Supplemental Info
Impacts for Non-Compliance
Grant Funding At Risk
LEAP Grant ($310,000)
LEAP-PGP Grant ($500,000)
PLHA (Funds North SPA Shelters)
Nearly $2M in potential funding on hold
Inability to Apply to any NEW CA-State grants that require compliance and adopted elements as a pre-requisite.
Potential loss of non-planning capital related funding from state grants.
Additional Potential Impacts
Financial Penalties starting at $100,000 Per Month Until Compliant.
Loss of State & Potentially Federal Funds
State Intervention (Court Receivership)
Loss of Local Control (Builders Remedy)
Subjected to Serial Litigations
Increased Consulting Costs & Legal Costs
17 Reduced HIOZ Parcel Options at December 3, 2024 Meeting Option 1: Retain All HIOZ Parcels in Selected Corridors Meets RHNA allocation with a buffer of 1,058 units (7-9%).
Keeps parcels distributed throughout varying economic areas of the city.
HCD recommends a 15-30% buffer per income category for very low and low.
Per Council direction to reduce buffer this option provides:
Very Low – 7%
Low Income – 9%
Option 2: Selective Removal of HIOZ Parcels Across All Corridors Removal of approx. 9 parcels within State College, Chapman, Raymond and Commonwealth.
Meets RHNA allocation with a buffer of 770 units (5-6%).
Provides a smaller buffer, which may pose a risk for HCD approval.
Very Low – 5%
Low – 6%
18 Reducing HIOZ to Sites Inventory Only (December 3rd Recommendation) Table B-2 Potential Residential Development Compared to RHNA Units by Income Category
Very Low
Low
Moderate
Above Moderate
Approved and Pending Projects (Table B-3)
67 133
131
2,227
Potential ADUs
90 155
108
10 Surplus Land (Table B-5)
7 5
0 117
Total Existing Potential
164
288
239
2,354
Candidate Sites for Rezoning
Housing Incentive Opportunity Zone (Table B-12)
3,258
1,850
2,349
3,760
Total Potential Residential Development
3,422
2,143
2,588
6,114
RHNA (2021-2029)1
3,198
1,989
2,271
5,751
Surplus
224
154
317
363
Source: City of Fullerton, 2024
Height, Stepback, and Setback Standards
Maximum Building Height for Parcels within 100 feet of R-1 Zones is 30 unless there is a grade differential:
For a grade differential of less than 20 feet, a 35 feet maximum height limit applies.
For a grade differential of more than 20 feet, a 40 feet maximum height limit applies.
Minimum Building Step-Backs for Multiple-Family Residential Zones For 2nd story and above a minimum of 5-feet for 70% of the building length Step-Back Standards
HIOZ
Along Street (A)
10 feet
Along Side Street (B)
10 feet
Along Alley (C)
5 feet
Along Interior Lot Line (D)
5 feet
CEQA Determination(s)
Housing Element exempt from CEQA per Govt. Code Section 15061(b)(3) HIOZ was analyzed under a Program Environmental Impact Report (PEIR), as defined under Section 15168 of the CEQA Guidelines.
Key Findings:
Majority Impacts Mitigated to “Less Than Significant”
Some impacts include Air-Quality, Noise and Cultural Resources which are addressed through Mitigation Monitoring and Reporting Program for Future Developments The Modified Reduced Sites Alternative is 723 total parcels analyzed at a max of 60du/ac. 21 Program EIR Alternatives
The EIR identified 3 alternatives to the HIOZ:
No Project/ Buildout According to Adopted Plans (continues previously adopted General Plan projections) Reduced Sites (removes 8 commercial properties deemed economically viable) Modified Alternative 2 (removes 29 additional parcels, adds 1 parcel). This modification in does not constitute significant new information requiring recirculation of the Program EIR as defined in CEQA Guidelines Section 15088.5.
Reduced Density (reduces the maximum density to 45 du/ac across HIOZ parcels) HIOZ
759 total parcels
35,611 dwelling units
60 du/ac
Alternative 1 – No Project
759 total parcels
5,510 dwelling units
du/ac per adopted General Plan
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
Modified Alternative 2
723 total parcels
29,468 dwelling units
60 du/ac
Fullerton’s 6th Cycle RHNA Increase
23 Fullerton's RHNA From Cycle 5 to Cycle 6
Income Category
Cycle 5 Units
Cycle 6 Version 1
Cycle 6 Final
Very Low Income (<50% of AMI):
411
1,841
3,198
Low Income (50-80% of AMI):
299
1,137
1,989
Moderate Income (80-120% of AMI):
337
1,290
2,271
Above Moderate (>120% of AMI):
794
3,238
5,751
Total Units for Element
1,841
7,507
13,209
617% Increase
307% Increase
Appendix H-B: Residential Land Resources – RHNA
Income Category
RHNA (Housing Units)
Percent of Total Units
Very-Low Income
(<50% of Median Income)
3,198
24%
Low Income
(50-80% of Median Income)
1,989
15%
Moderate Income
(80-120% of Median Income)
2,271
17%
Above Moderate Income
(>120% of Median Income)
5,751
44%
Total
13,209
100%