011725 CLK Ordinance 3335 — City Council - Successor Agency

ORDINANCE NO. XXXX

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FULLERTON,

CALIFORNIA, 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

LRP-2024-0009
APPLICANT: CITY OF FULLERTON

WHEREAS, California state law requires every city to have a General Plan, including a Housing Element, which complies with the provisions of Government Code Section 65580 et seq.

WHEREAS, the Housing Element is required, among other things, to identify sites sufficient to accommodate the City’s Regional Housing Needs Assessment (RHNA) as assigned by the Southern California Association of Governments.

WHEREAS, the 6
th Cycle Housing Element cannot be found to be substantially compliant with state law until the rezoning required by the programs in the housing element has been done.

WHEREAS, the California Government Code and Fullerton Municipal Code Sections

15.72.040 and 15.72.050 authorize the Planning Commission to hold a public hearing to consider amendments to the Fullerton Zoning Code and make a recommendation to City Council based on findings that the proposed amendments are consistent with state requirement.

WHEREAS, one of the programs identified in the Housing Element to help meet the City’s RHNA goals is to adopt an overlay zone (Housing Incentive Overlay Zone) that allows a property owner to develop multi -family housing on a parcel with a non- residential underlying zoning classification in exchange for providing a specified percentage of deed- restricted affordable housing units.

WHEREAS, the Housing Incentive Overlay Zone (HIOZ) Program is intended to facilitate the by -right development of multiple- family housing, including affordable housing, on designated parcels, and to implement state laws that require cities to demonstrate available land capacity to accommodate the City’s projected need for housing.

WHEREAS, after numerous public meetings, it was determined that the Housing Incentive Overlay Zone should be placed on Housing Inventory sites identified in the 6 th
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Cycle Housing Element as well as many other sites in the City to provide additional housing opportunities.

WHEREAS, the Planning Commission of the City of Fullerton, California held a duly noticed public hearing in compliance with FMC 15.72.040 and as required by state law for LRP-2024-0009 to consider amendments to the Fullerton Plan and Fullerton Municipal Code and make a recommendation to City Council on September 25, 2024.

WHEREAS, at the close of the public hearing, the Planning Commission adopted Resolution No. PC-2024-30 recommending City Council adopt this Ordinance.

WHEREAS, City Council held a duly noticed public hearing on this matter on November 19, 2024.

WHEREAS, after the close of the public hearing City Council directed Staff to revise the Inventory Sites list in the Housing Element to address concerns, only adopt the HIOZ for Inventory Sites, and examine the possibility of additional regulations to be included in the HIOZ Ordinance; and

WHEREAS, Staff presented the option of removing an additional nine sites from the Inventory List in the November 2024 Draft Housing Element for City Council consideration on December 3, 2024.

WHEREAS, City Council further considered this matter on December 3, 2024, and provided direction to Staff to make additional reductions to the Inventory Sites listed in the Housing Element and make changes to the amount of affordable housing that would be required for projects in a HIOZ zone to require 20 percent affordable housing, and continued the matter to a special meeting on December 10, 2024.

WHEREAS, Staff and the City’s Housing Consultant performed additional analysis and determined that additional sites could be removed from the Inventory Sites list included in the November 2024 Draft Housing Element that was presented to City Council for the December 3, 2024 meeting and still provide sufficient sites to meet the City’s Regional Housing Needs Allocation.

WHEREAS, City Council further considered this matter on December 10, 2024, at which time it determined that the Inventory Sites in the Draft November 2024 Housing Element should be reduced as set forth in Resolution No. 2024-060, which was adopted prior to the introduction of this Ordinance.

WHEREAS, prior to the adoption of this Ordinance, City Council adopted Resolution No. 2025-003 approving the Housing Element update for the 6 th Cycle Housing Element.

WHEREAS, prior to the adoption of the Ordinance, City Council adopted Resolution No. 2024-061 updating the Community Development and Design Tables and Exhibits of Part Ord. No. XXXX

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E of Part II of the Fullerton Plan Relating t o a Housing Incentive Overlay an d revising Appendix C.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF FULLERTON ORDAIN S AS FOLLOWS:

SECTION 1. Findings.

A. The previous recitals are true and correct and are incorporated as if fully set forth herein.

B. Adoption of this Ordinance represents good planning practices and is required by law as it creates consistency between the City’s General Plan, including the Community Development and Design portion, as well as with the Housing Element.

SECTION 2. Zoning Map Amendment.

A. City Council hereby approves the changes to the Zoning Map of the City of Fullerton to place a Housing Incentive Overlay Zone on designated parcels as shown in Exhibit A, attached hereto, and incorporated herein by reference, and as further designated in Exhibit B, attached hereto, and incorporated herein by reference.

B. The changes to the Zoning Map represent implementation of the HIOZ on the Housing Element Inventory Sites only as modified by City Council on December 10, 2024, through the adoption of Resolution No. 2024- 060.

SECTION 3. Fullerton Municipal Code Section 15.08.020 is hereby amended by adding the following new Special Zone Classification to read as follows: HIOZ Housing Incentive Overlay Zone

SECTION 4. Section 15.17.075 is hereby added to the Fullerton Municipal Code to read as follows:

15.17.075. Site Development Standards for the Housing Incentive Overlay Zone (HIOZ) Zone Classification.

The following development standards apply to the HIOZ zone. For mixed- use development projects, refer to Chapter 15.18 (Mixed-Use Development). Where conflicts between provisions exist, the more restrictive standard shall apply.

A. Building Standards

1. Lot Standards
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a. Lot standards shall be as prescribed in Table 15.17.075.A.

b. Exception: The permitted lot area per dwelling unit shall be 1,600 square feet per unit when at least 80 percent required parking is fully below natural grade or when two pre- existing, legal lots are consolidated into one lot of 20,000 square feet or greater having access from a public alley.

Table 15.17.075.A
Lot Requirements for the HIOZ

HIOZ
Minimum lot area 15,000 SF
Minimum lot area
per dwelling unit
N/A
Maximum lot
coverage
N/A

2. Setbacks Standards

a. Building setback standards shall be as prescribed in Table 15.17.075.B and as illustrated in Figure 1.

b. Exception: When the combined area of the required setbacks from public streets exceeds 25 percent of the total lot area, said setbacks may be reduced so as not to exceed 25 percent of the total lot area, subject to the approval of the Director of Development Services.

c. The following elements are allowed to encroach into the setback:

i. Walls and fences per Section 15.17.075.B.3

ii. Landscaping per Section 15.17.075.B.4.

Table 15.17.075.B
Minimum Building Setbacks for the HIOZ

HIOZ
Along Street (A) 10 feet
Along Side Street (B) 10 feet
Along Alley (C) 5 feet (1)
Along Interior Lot Line
(D)
5 feet (1)
(1) Setback standard is applicable to the ground floor (i.e., at finished grade). See Section

15.17.075.A.3 (Step-Back Standards) for upper-story step-backs.

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Figure 1. Building Setbacks

3. Step-Back Standards

a. Building step-back standards shall be as prescribed in Table 15.17.075 .C and illustrated in Figure 2.

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b. Building step-backs shall be measured from the setback line.

c. Building step-backs shall occur for a minimum of 70 percent of the total façade length.

d. The following elements are allowed within the step-back:

i. Open space per Section15.17.075.B.
ii. Walls and fences per Section15.17.075.B.3.
iii. Landscaping per Section15.17.075.B.4.

Table 15.17.075.C
Minimum Building Step-Backs for the HIOZ

HIOZ
2nd story and above

Street (front and side) 0 feet

Along Alley or Interior Lot Line 5 feet

Figure 2. Building Step-Backs

4. Height Standards

a. Building height standards for the HIOZ shall be as prescribed in Table

15.17.075.D.

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b. In the HIOZ, w here subterranean parking is used, and such parking area is a basement as defined in Section 15.04 (Definitions), then the story above said basement shall be considered the first story of the structure.

Table 15.17.075.D
Maximum Height Requirements for the HIOZ

HIOZ
Maximum height limit for
development on those
portions of parcels within
100 feet of a property line
with an R- 1 zone
classification
30 feet.

If a multiple-family structure is located down-slope from an adjacent R- 1 zoned property, the following maximum height limits shall apply as illustrated in Figure 3.

- For a grade differential of less than 20 feet, a 30 feet maximum height limit applies.

- For a grade differential of more than 20 feet, a 40 feet maximum height limit applies.

HIOZ
Maximum height limit for
development on those
portions of parcels greater
than 100 feet from a
property line with an R -1
zone classification
65 feet

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Figure 3. Maximum Building Height for Parcels within 100 feet of R-1 Zones.

5. Façade Modulation and Articulation Standards

a. 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 4.

Figure 4. Façade Break

b. Façade modulation and articulation. A building façade with frontage along a street shall not span a continuous horizontal length greater than 50 feet unless it articulates at least 25 percent of the total façade area utilizing at least one of the following techniques and as illustrated in Figure 5:

i. Building step-backs, recesses/reliefs, and/or projections of at least 2 feet in depth,

ii. Use of balconies, decks, porches, patios, and/or terraces, and/or

iii. Use of awnings, trellises, canopies, lattices, louvers, sunshades, and/or other similar shading devices.

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Figure 5. Façade Modulation and Articulation

c. Blank facades. All building façades at each level shall not span a continuous horizontal length greater than 20 feet unless it includes a façade opening, such as window or door, as shown in Figure 6.

Figure 6. Blank Facades

6. Ground Floor Standards

a. Building entries. Each building façade with frontage along a street shall provide a minimum of one ground floor building entry with a pedestrian connection, such as a sidewalk or walkway, to the street. All street -facing building entries shall be recessed a minimum of 30 inches from the façade.

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b. Ground floor dwelling units. Each individual ground floor dwelling unit with frontage along a street shall provide its own ground floor entry with a pedestrian connection, such as a sidewalk or walkway, to the street, as illustrated in Figure 7 .

Figure 7. Entries for Ground Floor Dwelling Units

c. Façade Openings. Each ground floor façade shall dedicate at least 25 percent of the façade area to façade openings, such as windows or doors, as illustrated in Figure 8. The use of tinted, mirrored, or reflective glass is prohibited.

Figure 8. Ground Floor Façade Openings

B. Open Space Standards

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1. Private Open Space Standards

a. Private open space standards for the HIOZ shall be as prescribed in Table

15.17.075.E.

b. Each residential unit shall provide at least one private open space that is usable in the form of a balcony, deck, porch, patio, or terrace that measures at least 6 feet in at least one direction.

c. All such private open space areas may be counted on a one-for-one basis up to a total of one-third of the required open space.

d. Private open spaces shall not include any portion of off -street parking space, driveways, turnaround areas, required street setback area, or any accessory building or rooftops, except those portions thereof used for outdoor living or recreational purposes. Private open spaces shall also not be included within any common open space and any private open space occurring next to any common area shall be separated by a fence or wall architecturally designed to match the building.

2. Common Open Space

a. Multiple-family residential projects shall provide common open space as “usable open space” as defined in 15.17.040.C (General Site Development Standards – Usable Open Space).

b. Common open space standards for the HIOZ shall be prescribed in Table

15.17.075.F based on the number of units and bedroom mix.

c. Common open space shall be landscaped per 15.17.075.B.4 (Landscaping).

Table 15.17.075.F
Common Open Space Requirements per Unit for the HIOZ

Number of
Bedrooms per
Dwelling Unit
HIOZ
Studio 200 SF
Table 15.17.075.E
Private Open Space Requirements per Unit for the HIOZ

HIOZ
Minimum area of
usable private open
space required per
dwelling unit
67 square feet
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1 200 SF
2 300 SF
3 400 SF
Additional bedrooms 100 SF each

3. Fences and Walls

a. Applicability. Fences and walls shall be regulated as outlined in Section15.17.050.G (Fences and Walls).

4. Landscaping

a. Applicability. Landscaping shall be regulated as outlined in Chapter 15.50 (Landscaping and Irrigation Requirements) for the following:

i. Installation of new landscaped areas; or

ii. Rehabilitation of existing landscaped areas where affected landscaped area is equal to or greater than 2,500 square feet.

iii. Installation of new landscape areas less than 2,500 square feet in aggregate may opt to comply instead with the prescriptive measures contained in Chapter 15.50 Appendix A.

iv. New or rehabilitated projects using treated or untreated graywater or rainwater captured on site, any lot or parcels within the project that has less than 2,500 square feet of landscape area and meets the lot or parcel’s landscape water requirement (Estimated Total Water Use) entirely with the treated or untreated graywater or through stored rainwater captured on site is subject only to Appendix A Section (5).

b. Setbacks. All street and alley setbacks shall be landscaped except for pedestrian and vehicular access ways, or other non- irrigated areas designed for non- development (e.g., existing native vegetation).

c. Parking Areas. All open parking areas shall be landscaped and shall provide the following:

i. Planters with a total landscaped area of a minimum of 25 square feet per parking space or 8 percent of the total area of the open parking area, whichever is greater. Planters should be distributed throughout the open parking area.

ii. Trees with a total shaded area (e.g., the area under the tree canopy or dripline 15 years after installation) of a minimum of 50 percent of the total area of the open parking area. Trees should be distributed throughout the open parking area.

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d. Common Open Spaces. All common open space areas shall be landscaped and shall provide the following.

i. Landscaping. A minimum of 25 percent of outdoor common open space shall be a planted area with a minimum dimension of 30 inches in any direction.

ii. Trees. A minimum of one 24- inch box tree for every 500 square feet of outdoor common open space shall be planted within the common open space. For projects with 2 or more trees, a minimum of 50 percent of all trees planted shall be shade trees.

iii. For projects greater than 5 acres in size. Pedestrian accessways and publicly accessible usable open space shall be provided per 15.17.075.D.3.

C. Parking Standards

1. Off-Street Parking Standards

a. Off-Street parking for Multiple-Family Residential Zones shall be regulated as outlined in Section15.17.080 (Parking Standards) and this section.

b. Off-Street parking standards for Multiple- Family Residential Zones shall be prescribed in Table 15.17.075.G.

Table 15.17.075.G
Off-Street Parking Requirements per Unit for the HIOZ

HIOZ
Studio 1 space plus 0.1 guest spaces.
1 Bedroom
1 space plus 0.1 guest spaces.
2 Bedrooms

1.5 spaces plus 0.1 guest spaces.
3 or More
Bedrooms
2 spaces plus 0.1 guest spaces.

c. Exception: For projects within ½ mile of public transit per California Government Code Section 65863.2, off -street parking minimum requirements shall be waived.

d. Unbundled parking. For HIOZ projects, at the applicant’s option, vehicular parking spaces may be leased separately from the lease of the dwelling unit.

2. Vehicular Access and Layout Standards

a. At-grade (surface) parking is prohibited within any street setback. Entry/exit openings, driveways, curb cuts, and access lanes for vehicular access, fire access, utilities access, or pedestrian access are exempt from this requirement.

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b. Above-grade structured parking facing a street shall be screened by landscaping or buildings so that it is not visible from the street. Entry/exit openings, driveways, curb cuts, and access lanes for vehicular access, fire access, utilities access, or pedestrian access are exempt from this requirement.

c. Below-grade structured parking is exempt from street setback requirements.

D. Site Standards

. Access and Circulation Standards

a. In order of priority and subject to approval by the Community Development Director and the City's Traffic Engineer, vehicular access shall be provided from (a) an alley, rear street, or perimeter drive aisle, (b) a side street, (c) an existing or relocated access point on a front street, and (d) a new access point on a front street.

2. Trash, Storage, and Mechanical Equipment

a. Utility meters and connections, air conditioning condensers, ducting/venting, panels, roof ladders, and similar equipment shall be screened from view from the street (public and internal) and shall not be located within any required open space or setback a rea. Screening techniques range from the use of landscaping to placement in concealed rooms or closets for equipment on the ground. Roofs shall be of a form or height to provide screening for roof -mounted equipment.

Alternatively, roof screening that is consistent with the architecture of the building may be used.

b. No trash enclosure shall be located in any required open space or setback area, within direct view of a street. For projects utilizing exterior trash enclosures, the following requirements shall be met:

i. Enclosure shall be constructed of masonry with walls a minimum of six (6) feet in height and finished to match the main building. ii. Enclosure shall be finished with a solid roof designed to architecturally match the main building.
iii. Enclosure shall be finished with solid metal doors. iv. Enclosure shall be provided with hose bib and floor drain connected to the sanitary sewer to facilitate regular cleaning.
c. The outdoor storage of materials, products, supplies, and containers shall be prohibited.

3. Standards for Projects Greater than 5 Acres in Size

a. P rojects on sites with an area of 5 acres or more shall provide the following:

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i. Pedestrian walkways shall connect all buildings in a project to each other, to on- site parking areas, to on- site publicly accessible open spaces, to other on-site amenities, and to the public sidewalk along each abutting public right of way. Pedestrian wal kways shall be continuous. Where an interruption occurs, such as at a driveway, drive aisle, or street, the pedestrian walkway shall maintain a direct connection via a marked crosswalk or similar feature.

ii. A publicly accessible usable open space shall be provided, in addition to any required common open space, per the following:

a. Open space shall provide a minimum area equivalent to 5 percent of the total floor area of the project.

b. Open space shall be a usable outdoor space and may include, but is not limited to, parks, plazas, courtyards, paseos, arcades, or other similar open spaces that allow for public leisure, recreation, and/or gathering.

c. Open space shall provide access to a public right-of-way and be usable, open, and accessible to all residents, tenants, patrons, and the public in a project at a minimum between 8am and 8pm.

d. Open space shall provide at least one contiguous area with a minimum area of 400 square feet and a minimum length and width of 20 feet.

e. Open space shall be landscaped for a minimum of 25 percent of the total area.

f. Open space shall be hardscaped for a minimum of 25 percent of the total area.

g. Open space shall provide a minimum of 1 seat for every 200 square feet of the total area, where seating may be permanent or movable and may be in the form of a chair, bench, ledge, low wall, or other similar usable seating arrangement.

h. Required common open spaces shall not count towards
required publicly accessible open spaces.

SECTION 5. Chapter 15.18 is added to the Fullerton Municipal Code to read as follows:

Chapter 15.18. Mixed-Use Development Standards for the HIOZ

15.18.010. Intent and purpose.

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A. The following development standards apply to mixed- use developments in the HIOZ and are supplemental to the development standards prescribed in the applicable underlying base or overlay zone. Where conflicts between provisions exist, the more restrictive standard shall apply.

B. The following development standards apply to both horizontal and vertical mixed -use developments as defined in Section15.18.020 (Definitions).

C. The following development standards for mixed-use developments are intended to enhance the design of buildings and the public realm that promote active, ground floor pedestrian activity.

15.18.020. Definitions.

A. Unless otherwise noted, definitions for terms in this chapter are subject to §15.04 (Definitions). Exceptions include:

1. Horizontal Mixed-Use Development means a development project that combines residential and commercial land uses into a single development project where uses are adjacent to one another, either in separate buildings on the same parcel or on adjoining parcels in a development project. Internal streets and pedestrian pathways physically and visually connect the separate but adjacent uses into one unifying development.

2. Vertical Mixed-Use Development means a development project that combines residential and commercial land uses into a single development project where uses are physically integrated into one building. Typically, publicly accessible uses occupy the ground level, such as commercial or common residential uses, while private uses occupy the upper levels, such as dwelling units.

15.18.030. Applicable Underlying Base or Overlay Zone Standards.

A. Applicable Underlying Base or Overlay Zone Standards.

1. The development standards for the following elements as prescribed in the applicable underlying base or overlay zone shall apply to mixed- use developments. Where conflicts between provisions exist, the more restrictive standard shall apply.

a. Lot/parcel

b. Setbacks

c. Step-backs
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d. Building height

e. Building façade modulation and articulation

f. Landscaping

g. Fences and walls

B. Parking Standards.

1. For dwelling units within a mixed -use development, parking facilities shall be provided at the rate of that specified in Section 15.17.075.

2. For commercial uses within a mixed- use development, parking facilities shall be subject to the provisions for the C -3 Zone in Section

15.30.060 (Parking Standards) and Section 15.30.075 (Access and Circulation Standards).

3. Parking facilities within a mixed-use development shall be designed to the vehicular access and layout standards prescribed for multiple- family residential projects in Section 15.17.075.E.3 (Vehicular Access and Layout Standards).

C. Open Space Standards.

1. For dwelling units within a mixed -use development, open space shall be provided at the rate specified in Section 15.17.075. If the proposal only involves the conversion of existing building area to create the residential use, the requirement for open space shall be waived.

15.18.040. Permitted Uses.

A. Permitted Uses

1. Those permitted uses in the C-3 zone shall apply to commercial uses for all mixed-use developments.

15.18.050. Ground Floor Commercial Standards.

A. Ground Floor Height

1. Buildings shall have a minimum ground floor height of 12 feet, measured from the finished grade of the sidewalk to the finished floor of the second floor or bottom of the roof structure, whichever is less.

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B. Ground Floor Building Entries

1. Each building façade with frontage along a street shall provide a minimum of one ground floor building entry with a pedestrian connection to the public right-of-way, such as a sidewalk or walkway.

2. All building entries shall be recessed a minimum of 30 inches from the façade.

3. Primary building entries shall be distinguished by the use of architectural features, such as overhead projections, awnings, canopies, etc.

C. Ground Floor Façade Openings

1. Ground floor facades with frontage along a street shall dedicate at least 70 percent of the façade area to façade openings, such as windows or doors. The use of tinted, mirrored, or reflective glass is prohibited.

2. Ground floor façades with frontage along a street shall not span a continuous horizontal length greater than 20 feet unless it includes a façade opening, such as window or door.

D. Public Improvements

1. Mixed-use developments with at least 100 feet of frontage along a Major Arterial shall provide public improvements within the public right- of-way as required by the City Engineer subject to the provisions of Chapter 16.05 (Public Improvements, Dedications, Performance Agreements, and Improvement Securities), including but not limited to the following:

a. Sidewalk and walkways

b. Street lighting

c. Parkway trees

d. Landscaped parkway

E. Outdoor Seating and Dining

1. Outdoor seating and dining within the public right -of-way associated with a ground floor commercial use shall be subject to the provisions of the City of Fullerton Standard Outdoor Dining Guidelines.

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F. Outdoor Display or Sale of Merchandise

1. Outdoor display or sale of merchandise associated with a ground floor commercial use shall be subject to the provisions of Section15.55.020 (Special Uses Permitted with Provisions).

G. Signs

1. Signs shall be subject to the provisions of Chapter 15.49 (Sign Standards and Regulation).

15.18.060. Review Procedures.

Proposals to create new dwelling units as part of a mixed- use development shall be subject to the following review procedures:

A. No discretionary approval will be required if the development involves only the conversion of existing building area, and the number of units is less than seven;

B. Approval of a Minor Site Plan or Minor Development Project will be required if the proposal involves new building area on the property and the number of units is less than seven, or if the project is within the HIOZ;

C. Approval of a Major Site Plan or Major Development Project will be required if the proposal involves the creation by new construction or conversion of existing building area of seven or more dwelling units on the property.

SECTION 6. Chapter 15.23 is added to the Fullerton Municipal Code to read as follows:

Chapter 15.23. Housing Incentive Overlay Zone (HIOZ)

15.23.010. Intent and purpose.

A. The Housing Incentive Overlay Zone (HIOZ) is intended to facilitate the by -right development of multiple- family housing, including affordable housing, on designated parcels, and to implement state laws that require cities to demonstrate available land capacity to accommodate the City’s projected need for housing.

B. The HIOZ is an overlay zone, to be used only with an underlying non- residential base zone. The HIOZ shall apply to the designated parcels as identified in the zoning map and parcel list on file in the Community and Economic Development Department.

C. The requirements imposed by the HIOZ are intended to supersede those requirements in the base zone when a designated parcel is developed in compliance with this chapter.

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15.23.020. Overlay zone.

A. The application of the HIOZ shall be signified by the designation of a “-HI” suffix following the base zone designation on the official zoning map. For example, the use of this zone in conjunction with the General Commercial zone would be designated as “GC-HI.”

15.23.030. Definitions.

For the purposes of this chapter, the following meanings shall apply:

A. Affordable Housing shall be defined per Chapter 15.04.040 (Definitions).

B. Multiple-Family Housing shall be defined as DWELLING, MULTIPLE per Chapter 15.04.040 (Definitions).

C. Mixed-Use Development shall be defined per Chapter 15.04.040 (Definitions).

15.23.040. Procedures for review of requests for inclusion in the HIOZ.

For properties not currently included in the HIOZ, a request for a HIOZ designation may be initiated by:

A. A request for a HIOZ designation may be initiated by an application by a property owner made in accordance with the procedures identified in Chapter 15.72 (Amendments).

B. Application of this zone shall be consistent with the objectives of the Zoning Ordinance and General Plan, reasonably compatible with surrounding land uses and promote the general health, safety, and welfare.

15.23.050. Procedures for approval of HIOZ projects.

For properties included in the HIOZ, projects shall be approved in accordance with the following procedures:

A. Minor Site Plan Review. Projects developed in this zone that meet all objective development standards shall be subject to review as a Minor Site Plan pursuant to Chapter 15.47 (Site Plan Review) and shall be approved ministerially by the Community Development Director. The design review criteria of section 15.47.060 are not applicable to this approval.

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B. Major Site Plan Review. Projects developed in this zone that seek to exceed the height requirement or that wish to satisfy the required affordable housing by an alternative means as set forth in Section

15.23.065, shall be processed as a Major Site Plan review pursuant to Chapter 15.47 and shall be subject to approval by the Planning Commission. The design review criteria of section 15.47.060 are not applicable to this approval.

C. HIOZ projects that reserve at least twenty percent (20%) units for lower, very low, extremely low, or acutely low-income households shall be ministerially approved without the need for any Site Plan r eview.

This provision shall not apply if any portion of the required affordable housing is satisfied by an alternative means as set forth in Section

15.23.065.

D. Additional approvals. Projects that require approval for a lot line adjustment, consolidation of lots, or subdivision in conjunction with approval pursuant to this chapter shall comply with Title 16 (Subdivisions).

E. Provisions of approval. Projects shall comply with the applicable provisions of Chapter 15.76 (Procedures, Hearings, Notices, and Fees) for the expiration, renewal, extension, refiling, and withdrawal of approval, unless superseded by state law.

15.23.060. Affordable housing requirement.

A. Minimum requirement for affordable housing. At least twenty percent (20%) of the total residential units in a HIOZ project developed pursuant to this chapter shall be sold or rented at an affordable housing cost or affordable rent to households of moderate, low, very low, extremely low, or acutely low income as defined by state law. If the units are rental units, the affordable units shall be deed-restricted for a period of not less than fifty-five (55) years. If the units are for-sale units, the units shall be sold in accordance with California Government Code Section 65915, if no other provisions of law apply.

B. Relationship to State density bonus. Affordable unit s qualifying for a density bonus under state law shall count toward meeting the number of affordable units required under this section.

C. Agreement. Prior to the issuance of a building permit, an agreement in a form approved by the City Attorney shall be executed and recorded as a deed restriction on the property to ensure that the property complies with all of the requirements in this Chapter, including, but not Ord. No. XXXX

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limited to, the requirement that affordable units shall be deed restricted as provided for in Subsection A. above. The city shall provide periodic monitoring of compliance with the provisions of the deed restriction.

15.23.065 Applicant options for providing affordable housing units.

To comply with the city's affordable housing requirement set forth in section 15.23.060, applicants may choose one of the following options:

A. Applicants may construct their required inclusionary housing units on- site within the residential project. The inclusionary housing units must be constructed prior to or concurrently with construction of the market- rate units in the development project. If the project is a for-sale project, the applicant may choose to rent the units to households meeting the required income levels. In such case, the applicant shall either manage the units or enter into an agreement with a qualified non-profit housing corporation to manage these units. The agreement shall be subject to approval of the City. All rental units shall be required to remain affordable for a period of 55 years.

B. Applicants may construct their required inclusionary housing units off- site. If this option is chosen, then the off -site inclusionary units must be constructed prior to or concurrently with construction of the residential development project. The inclusio nary unit size and count must meet the same requirements as if the inclusionary units were constructed on site. No certificate of occupancy will be issued for any corresponding market rate unit prior to inclusionary unit construction completion.

1. The applicant may enter into an agreement with a qualified nonprofit housing corporation or other entity to construct and own or operate these units. The agreement shall be subject to approval by the City.

2. The applicant may enter an agreement with another entity to construct these units. The agreement shall be subject to the approval of the City.

C. Applicants may pay In-lieu fees. The in-lieu fee shall be charged at an amount to be determined by City Council resolution. All in -lieu fees shall be paid prior to the issuance of a building permit for any residential structure in the development project.

D. Applicants may acquire and reconstruct existing units, subject to the following provisions. These types of units can be acquired by the Ord. No. XXXX

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applicant, then reconstructed in accordance with city building procedures and requirements, then converted to
affordable inclusionary housing units.

E. Land Dedication. In lieu of building inclusionary units, the developer may dedicate to the City land within the City that the City determines is suitable for the construction of inclusionary units and is of equivalent or greater value than is produced by applying the City's current in-lieu fee to the inclusionary obligation. The land shall be donated no later than the date of approval of the final subdivision map, parcel map, or issuance of first building permit for the residential units, whichever occurs first.

F. Applicants may choose any combination of the options described in subsections A through E above to comply with the provisions of this chapter. The city shall review these proposals on a project -by-project basis to ensure that the required number of inclusionary housing units are ultimately provided.

G. All on-site or off-site inclusionary housing units, regardless if the units are for-sale or rental, shall be comparable to the units developed in the housing project which gave rise to the obligation to provide the inclusionary units.

H. City Council shall adopt guidelines for the implementation of this section.

15.23.070. Mixed-use requirement.

A. Minimum requirement for commercial floor area. Projects bordered on one or more sides by a Major or Primary Arterial and with a total project site area of least 1 acre shall be required to provide ground- floor commercial uses as a part of a horizontal or vertical mixed -use development. The area of ground- floor commercial uses to be provided shall be equivalent to the permitted total floor area of commercial and/or industrial uses existing on site. Projects shall be exempt from this requirement if a certified market analysis report provided for the Director’s review and approval demonstrates the infeasibility of accommodating this requirement.

B. Maximum requirement for commercial intensity. Projects that provide commercial uses as part of a horizontal or vertical mixed- use development shall comply with the maximum non-residential intensity requirements set forth by the underlying non-residential base zone.

15.23.080. Permitted uses.

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The following uses are permitted in the HIOZ:

A. Those Residential Uses permitted in the R -5 (Maximum-Density Multiple-Family) district per Chapter 15.17 (Residential Zone Classifications) are permitted in the HIOZ and shall be allowed ministerially.

B. Those Commercial Uses permitted for mixed- use development per Section 15.30.040.E (Mixed- use (commercial/residential) development) are permitted in the HIOZ as specified.

15.23.090. Development standards.

Projects in this zone shall be developed in compliance with the applicable development standards of the respective permitted uses included in the project per the following:

A. For residential uses as established in Chapter 15.17 (Residential Zone Classifications).

B. For mixed-use development as established in Chapter 15.18 (Mixed- Use Development Standards for the HIOZ).

15.23.100. Residential density requirements.

A. The minimum residential density for HIOZ projects shall be 20 dwelling units per acre.

B. The maximum residential density for HIOZ projects shall be 60 dwelling units per acre, not inclusive of any additional density a project may receive in compliance with the state Density Bonus Law and the provisions of this Code.

SECTION 7. Any provision of the Fullerton Municipal Code or appendices thereto inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no further, is hereby repealed or modified to that extent necessary to effect the provisions of this Ordinance.

SECTION 8. If any section, subsection, phrase or clause of this Ordinance is for any reason held to be unconstitutional, such decision will not affect the validity of the remaining portions of this Ordinance. City Council hereby declares that it would have passed this Ordinance and each section, subsection, phrase or clause thereof irrespective of the fact that any one or more sections, subsections, phrases or clauses may be declared unconstitutional.

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SECTION 9. CEQA Guidelines Section 15282(s) references the Statutory Exemption set forth in Government Code S ection 65759 which exempts a project from CEQA review if it is an action necessary to bring a general plan or relevant mandatory element of the general plan into compliance pursuant to a court order as set forth in Section 65759. This exemption is applicable to adoption of the HIOZ Ordinance as the stipulated judgment and order under a lawsuit brought by Californians for Homeownership, Inc. provides that section 65759 applies to all actions required to implement the final judgment and order which includes adoption of the HIOZ Ordinance.

Additionally, the adoption of the HIOZ Ordinance Element is exempt under Section 15061(b)(3) as it can be seen with certainty that there is no possibility that the adoption of this element may have a significant effect on the environment since no physical development is proposed at this time. Staff is directed to file a Notice of Exemption.

SECTION 10. The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published in the manner required by law.

This Ordinance shall become effective thirty days from and after its passage.

SECTION 11. The documents and materials that constitute the record of proceedings on which these findings and approval are based are located in the City Clerk’s Office at City Hall, 303 West Commonwealth Avenue, Fullerton, CA. The Custodian of Records is the City Clerk who can be reached at (714) 738- 6350.

ADOPTED BY THE FULLERTON CITY COUNCIL ON JANUARY 21, 2025.

Fred Jung
Mayor
ATTEST:

_____________
Lucinda Williams, MMC
City Clerk

Date

Attachments:

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• Attachment 1 – Zoning Map

• Attachment 2 – List of Parcels within the Housing Incentive Overlay Zone

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