Agenda Report
Fullerton City Council
MEETING DATE: DECEMBER 10, 2024
TO: CITY COUNCIL / SUCCESSOR AGENCY
SUBMITTED BY: SUNAYANA THOMAS, DIRECTOR OF COMMUNITY AND ECONOMIC DEVELOPMENT PREPARED BY: Sunayana Thomas, Director of Community and economic development SUBJECT: 6TH CYCLE (2021-2029) HOUSING ELEMENT, HOUSING INCENTIVE OVERLAY PROGRAM ENVIRONMENTAL IMPACT REPORT, FULLERTON GENERAL PLAN LAND USE ELEMENT PORTION AMENDMENT TO IMPLEMENT HOUSING INCENTIVE OVERLAY PROGRAM AND HOUSING INCENTIVE OVERLAY ZONE (Continued from December 3, 2024 meeting)
SUMMARY
Staff received direction to increase the Housing Incentive Overlay Zone (HIOZ) affordability requirement from 15% to 20% for moderate to acutely low-income levels and remove parcels between Raymond and Euclid along Chapman Avenue and Commonwealth Avenue from the Housing Sites Inventory.
PROPOSED MOTIONS
Adopt the following resolutions:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FULLERTON, CALIFORNIA PROVIDING DIRECTION REGARDING THE INVENTORY SITES TO BE INCLUDED IN THE CITY’S HOUSING ELEMENT
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FULLERTON, CALIFORNIA CERTIFYING AN ENVIRONMENTAL IMPACT REPORT, MAKING FINDINGS OF FACT, ADOPTING A STATEMENT OF OVERRIDING CONSIDERATIONS, AND ADOPTING A MITIGATION MONITORING AND REPORTING PROGRAM RELATING TO A HOUSING INCENTIVE OVERLAY PROGRAM
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FULLERTON, CALIFORNIA, AMENDING THE FULLERTON GENERAL PLAN BY AMENDING THE FULLERTON PLAN FULLERTON BUILT ENVIRONMENT PORTION TABLES AND EXHIBITS OF AND ADOPTING A REVISED APPENDIX C TO INCORPORATE THE HOUSING INCENTIVE OVERLAY DESIGNATION INTO THE FULLERTON PLAN Introduce Ordinance No. XXXX for first reading by title only and waive further reading of the ordinance.
An ordinance OF the city council of the city of fullerton AMENDING fullerton municipal code section 15.08.020 and adding a NEW SECTION 15.17.075 AND chapters 15.18 and 15.23 relating TO the Housing incentive overlay zone program establishment and related development standards and amending the official fullerton zoning map by applying the “-hi” zoning overlay designation to certain commercial AND industrial zoned properties
ALTERNATIVE OPTIONS
Staff has provided the option based on City Council direction of increasing affordability to 20% and reducing sites along Chapman and Commonwealth Corridors between Euclid and Raymond.
We have provided for background the two options presented at the City Council meeting on December 3rd.
STAFF RECOMMENDATION
Per Council direction at the December 3, 2024, meeting, staff is presenting the proposed motion that incorporates the increased affordability requirement of 20%, the removal of parcels along Chapman and Commonwealth Avenues while maintaining approximately a 1% buffer, and the refinement of the HIOZ parcels to align with the Housing Sites Inventory while accommodating reduced buffers. This motion reflects the culmination of public comments and Council’s discussions and decisions from previous meetings. Given the stipulated timeframe and the effort involved in updating the Housing Element document and analysis, this option is presented as the most viable path to meet the deadlines outlined in the stipulated judgment.
CITY MANAGER REMARKS
Per Council direction and request, staff is presenting the proposed motion that incorporates the increased affordability requirement of 20%, the removal of parcels along Chapman and Commonwealth Avenues while maintaining approximately a 1% buffer, and the refinement of the HIOZ parcels to align with the Housing Sites Inventory while accommodating reduced buffers.
PRIORITY POLICY STATEMENT
This item matches the following Priority Policy Statements:
Fiscal and Organizational Stability
Infrastructure and City Assets.
IMPACTS
Failure to adopt the Housing Element and HIOZ Ordinance by January 28, 2025 could lead to adverse consequences as previously described at the December 3, 2024 meeting.
A General Fund request will be required at a later date to cover consultant costs not funded through grants or overages.
PREVIOUS OPTIONS
Two options were presented to the City Council at the December 3, 2024 meeting which provided for a higher buffer.
Option 1: Reducing HIOZ sites to Sites Inventory as listed in the November 2024 Draft Housing Element Very Low Income
Low Income
Moderate Income
Above Moderate Income
Total
RHNA Allocation
3,198
1,989
2,271
5,751
13,209
Planned and Approved Units
67 133
131
2,227
2,558
ADUs
90 155
108
10 363
Remaining RHNA After Credits
3,041
1,701
2,032
3,514
10,288
HIOZ*
3,258
1,850
2,349
3,760
11,217
Surplus Land/Owner Interest*
7 5
0 117
129
Total Units After Credits
3,265
1,855
2,349
3,877
11,346
Total Unit Surplus
224
154
317
363
1,058
Total % Buffer above RHNA Allocation
7%
9%
This option meets the RHNA with a buffer of 1,058 units.
Option 2: Removal of 9 HIOZ parcels within all corridors from that listed in the November 2024 Draft Housing Element Very Low Income
Low Income
Moderate Income
Above Moderate Income
Total
RHNA Allocation
3,198
1,989
2,271
5,751
13,209
Planned and Approved Units
67 133
131
2,227
2,558
ADUs
90 155
108
10 363
Remaining RHNA After Credits
3,041
1,701
2,032
3,514
10,288
HIOZ*
3,179
1,806
2,286
3,658
10,929
Surplus Land/Owner Interest*
7 5
0 117
129
Total Units After Credits
3,186
1,811
2,286
3,775
11,058
Total Unit Surplus
145
110
254
261
770
Total % Buffer above RHNA Allocation
5%
6%
This option meets the RHNA and provides a reduced buffer of 770 units.
Council Direction
Council continued the item to a special meeting and requested staff to bring a version of the Housing Inventory Sites that limited the HIOZ parcels to what is necessary for the Housing Inventory and remove additional parcels along Commonwealth and Chapman corridors (Raymond to Euclid). Council also directed staff to set the affordability requirement to 20% moderate to very low-income levels and further reduce the low income and very low-income category RHNA buffers.
Special Meeting Discussion – December 10, 2024
Per Council direction the proposed Sites Inventory reduces the HIOZ parcels to 205 parcels. With three City owned sites already zoned for residential the overall total is 208 total parcels to meet the RHNA requirements. The reduction of sites has resulted in a reduced buffer of 0% at very low income, 1% at low income, 1% for moderate and 1% for above moderate income, for a total surplus of 72 units.
The first Resolution before the City Council memorializes the sites to be removed from the Sites Inventory list that was part of the November 2024 Draft Housing Element presented to the City Council. Based on this Resolution, Rincon, the City’s Housing Consultant, will be able to finalize the Housing Element and make all necessary internal changes for consistency.
If further reductions of parcels are directed, further analysis will be required and the other approval documents before the City Council will have to be amended.
This option assumes a minimum of 4,714 units at 20 du/acre and 14,143 units at 60 du/acre as maximum. The realistic assumption per HCD methodology (described above) is 10,360 units.
Building Height Standards
A maximum height of 65 feet has been introduced, consistent with the Housing Element calculations and acceptable to HCD. Buildings within 100 feet of R-1 zones will remain at a height limit of 35-40 feet based on grade differential.
Affordability Requirement
The 20% affordability requirement reflects the latest direction from City Council. It aligns with the City's broader goals to address housing affordability.
Additional Review
Projects seeking to exceed height requirements or use alternative affordability compliance methods will follow existing requirements for a Major Site Plan Review and require approval by the Planning Commission.
HIOZ Only
A question was raised by a member of the public regarding lack of notice for the amendments to other existing zones. In order to resolve this matter, the Ordinance has been modified so that it only applies to parcels within the HIOZ. Required changes to the other zones will be brought forward to the Planning Commission and then the City Council early next year.
The ordinance retains the other provisions of the draft presented on December 3, 2024, including the 65 foot height limit which HCD found to be consistent with the assumptions in the document.Attachments:
Attachment 1 – Draft Resolution No. XX – Direction on Housing Inventory Sites Attachment 2 – Draft Resolution No. XX – EIR Certification Attachment 3 – Draft Resolution No. XX – Land Use Element Attachment 4 – Draft Ordinance No. XX – Zoning Ordinance cc: City Manager Eric J. Levitt
6th Cycle Housing Element
December 10, 2024 - Page 2