DATE: March 19, 2024
TO: Mayor and City Council
FROM: Development Services Director
SUBJECT: 27865 Manon Avenue Tract Map: Proposed Vesting Tentative Tract Map (Tract 8600) and Modification of an Affordable Housing and Density Bonus Plan from the Previously Approved Zone Change, Site Plan Review, Density Bonus and Environmental Review Application No. 202101491 for a 22 Unit Townhome Development located at 27865 Manon Avenue (APN 453-0090-014-00). Application: TM-23-0009; Applicant: Abraham Halaw, Briscoe Construction; Owner: Sunflower Manon LLC
RECOMMENDATION
That the Council adopts a resolution (Attachment II) approving the proposed Tentative Tract Map and Modified Affordable Housing/Density Bonus Plan based on the analysis set forth in this staff report and based on the Findings and subject to the Conditions of Approval contained in the resolution.
SUMMARY
In October 2022, the Council adopted Resolution 22-251 and Ordinance 22-08 approving Zone Change, Site Plan Review and Density Bonus application (202101491) to construct a 22-unit townhome development at 27865 Manon Avenue. Following these approvals, the applicant applied to subdivide the development, requiring approval of a Vesting Tentative Tract Map (Tract 8600) for Condominium Purposes to be able to sell each of the townhomes individually. The proposed subdivision would feature a single parcel with each condominium owner owning the airspace within their individual unit and an equal share of the common areas and improvements within the development, which would be maintained by a Homeowners Association. No changes to the originally approved buildings, landscaping plan, or site improvements are proposed, other than an adjustment to the location of the security fence.
To comply with the requirements of the City’s Affordable Housing Ordinance (AHO) for ownership projects, a modification of the previously approved Affordable Housing/Density Bonus Plan is required. The project will now provide two on-site ownership units that are deed restricted to be affordable to very low-income households in perpetuity. Additionally, the applicant will pay an in-lieu fee for a 0.04-fractional unit. The applicant further requests two additional Density Bonus waivers related to the installation of a security fence around the perimeter of the property.
BACKGROUND
In April 2021, the applicant submitted Zone Change, Site Plan Review, and Density Bonus Application 202101491 for 27865 Manon Avenue, requesting to rezone the property from Single Family Residential (RS) to Medium Density Residential (RM) and allow for a 22-unit townhome style rental development. On September 8, 2022, the Planning Commission recommended that the Council approve the proposed Zone Change, Site Plan Review, and Density Bonus application. On October 11, 2022, the application was formally approved with the Council’s adoption of Ordinance 22-08 (Attachment VI) and Resolution 22-151 (Attachment VII).
In September 2023 and prior to construction of the project, the applicant submitted an application requesting approval of a Vesting Tentative Tract Map to subdivide the development and to modify the previously approved Affordable Housing/Density Bonus Plan.
The application was reviewed by the Planning Commission at a public hearing on February 22, 2024. During their discussion, the Planning Commission expressed concern about the requested Density Bonus waivers related to the security fence due to the reduced queuing area for vehicles. However, they acknowledged that the applicant is eligible to request this waiver due to the provisions of State Density Bonus law. With a 4 to 1 vote, the Planning Commission recommended that the Council approve the Vesting Tentative Tract Map and Modified Affordable Housing/Density Bonus Plan.
DISCUSSION
Project Overview
Existing Site Conditions. The project site is an approximately one-acre lot situated 150-feet north of Tennyson Road and one block west of Huntwood Avenue. The site is 143-feet deep with 320 lineal-feet of frontage along Manon Avenue. The topography of the property is relatively flat. The site is currently vacant with no trees or significant vegetation.
Surrounding development and land uses include single family residential development to the north and west, two story multifamily development to the east and commercial uses to the south along Tennyson Road. Additionally, the site is approximately one-half mile west of the South Hayward BART station and within a quarter-mile of Cesar Chavez Middle School, Tennyson Park, Mia’s Dream Playground, and the future Stack Center.
Proposed Project. The proposed project consists of a Vesting Tentative Tract Map for a previously approved 22-unit townhome development (Zone Change, Site Plan Review, and Density Bonus Application No. 202101491). As shown in Attachment V, the approved plan features 22 three-story townhomes housed in four separate buildings laid out along a U-shaped private driveway and a centrally located outdoor common open space. The townhomes range from three to five bedrooms in size, each with a private one car garage. The development also includes an additional 19 uncovered parking spaces along the rear of the property.
The proposed Vesting Tentative Tract Map would overlay the previously approved site plan and enable the owner to subdivide the development and sell each of the townhomes individually. No changes to the previously approved building design, landscaping plan, or site improvements are proposed, other than an adjustment to the location of the security fence, so that it is setback approximately 10 feet from the front property line rather than 25 feet.
As a result of the proposed change from a rental project to an ownership project, the Affordable Housing/Density Bonus Plan included as Attachment IV has been updated to reflect the different requirements for ownership projects. These changes are also discussed further in the Affordable Housing Ordinance section below.
Policy Context and Code Compliance
Hayward 2040 General Plan. The project site is designated Medium Density Residential (MDR) in the Hayward 2040 General Plan, which allows for a residential density range of 8.7 to 17.4 dwelling units per net acre. While the previously approved project exceeds the allowable General Plan density at approximately 22 dwelling units per acre, a 30 percent density bonus was granted as part of Application No. 202101491. The MDR land use designation generally applies to suburban and urban areas that contain a mix of housing types. Typical building types include single-family homes, duplexes, triplexes, fourplexes, townhomes, and multi-story apartment and condominium buildings.
The project is consistent with numerous goals and policies of the General Plan in that the proposed subdivision and Affordable Housing/Density Bonus Plan will increase the ownership housing stock within the City of Hayward, provide on-site affordable units, and take advantage of easy access to the South Hayward BART station as well as nearby parks, schools, and amenities. The application’s consistency with the Hayward 2040 General Plan goals and policies are discussed in greater detail in Attachment II.
Zoning Ordinance. The project site is within the Medium Density Residential (RM) zoning district, which allows for a range of housing types, including attached townhome-style development. The project’s site plan and building design were all found to be compliant with the applicable standards of the RM zoning district when the Zone Change, Site Plan Review, and Density Bonus application was approved by the Council in 2022, and no changes to the approved buildings or site layout are proposed.
Subdivision Ordinance. In accordance with Chapter 10, Article 3 of the Hayward Municipal Code, the following findings must be made in order to approve an application for a Vesting Tentative Tract Map:
The proposed subdivision is not in conflict with the General Plan and applicable specific plan and neighborhood plans; The proposed subdivision meets the requirements of the City Zoning Ordinance; and No approval of variances or other exceptions are required for the approval of the subdivision.
As stated above, the proposed subdivision conforms to the Hayward 2040 General Plan and complies with the applicable requirements of the Zoning Ordinance without the need for any variances. More detail for each of the required findings is provided in Attachment II.
Regional Housing Needs Allocation. Local jurisdictions report progress annually on meeting their Regional Housing Needs Allocation (RHNA) goals which are included in the City’s Housing Element. The 6th Cycle Housing Element (2023-2031) was adopted by the City Council on February 7, 2023, and subsequently certified by the State Department of Housing and Community Development. In the next eight-year cycle (2023-2031), the City is required to build 4,624 units at a variety of income levels. According to the Housing Element, Appendix C, Table C-3, Planned, Approved and Pending Projects, there are a total of 2,073 units that are approved or otherwise pending at various income levels during the upcoming cycle. This project was included in the Planned, Approved, and Pending projects because it was approved by the City Council in 2022. With the proposed map, the two very-low-income units will be converted from rental units to ownership units.
Affordable Housing Ordinance. The proposed project is subject to the requirements of the City’s Affordable Housing Ordinance set forth in Chapter 10, Article 17 of the Hayward Municipal Code. An applicant may satisfy the requirements of the ordinance by paying an affordable housing in-lieu fee, including affordable units within the proposed development, or a combination of the two.
The Affordable Housing/Density Bonus Plan that was approved as part of the original project entitlement in 2022 met the requirements of the AHO by deed-restricting two of the 22 rental units to be affordable to very-low-income households. Now that the applicant is proposing to subdivide the townhomes into ownership units, the Affordable Housing/Density Bonus Plan needs to be modified to meet the requirements of the AHO for ownership projects. The applicant is proposing to deed-restrict two of the ownership units to be affordable to very-low-income households in perpetuity and will also pay an in-lieu fee for an additional 0.04 fractional unit that is now required. Based on the current affordable housing in-lieu fees listed in the City’s Master fee schedule, the fee for this fractional unit is approximately $49,000.
Density Bonus. A density bonus is a zoning tool granted by State law that allows for an increase in density with concessions and/or waivers to development standards when affordable housing units are included on-site. Pursuant to State law, the City shall grant the concessions and waivers proposed by the developer unless specific statutory findings can be made for denial. Proposed concessions and/or waivers may be denied if the concession or incentive does not result in identifiable and actual cost reductions to provide for affordable housing costs or affordable rents; the concession or incentive would have a specific adverse impact on public health or safety or on any property listed in the California Register of Historical Resources, and there is no feasible method to satisfactorily mitigate or avoid the impact without rendering the development unaffordable to low- and moderate-income households; or, the concession or incentive would be contrary to state or federal law.
In the original Zone Change, Site Plan Review, and Density Bonus application, the applicant requested a 30 percent density bonus, two waivers from standards in the Hayward Municipal Code related to the front and rear setbacks, and a reduction in parking, as permitted by State Density Bonus Law. As part of their application for a Vesting Tentative Tract Map and modification to the previously approved Affordable Housing/Density Bonus Plan, the applicant is requesting an additional two waivers related to a security gate surrounding the development:
Waiver for Required Security Gate Setback: Section 10-14.201 of the Hayward Municipal Code requires a security gate to be setback to a sufficient width for two side-by-side entry vehicles or sufficient depth to allowed for two queued-entry vehicles. Per the City’s Transportation Division, this is defined as a depth of 50 feet for two queued entry vehicles or a depth of 25 feet for two side-by-side entry vehicles. As the project provides sufficient width for two side-by-side vehicles, per the Transportation Division’s Condition of Approval 95 of Resolution 22-251, 25 feet is the required setback for the security gate. In order to locate the security gate 25 feet from the front property line, significant portions of four townhomes would need to be removed. As a result, the applicant requests a waiver to reduce the security gate setback to nine feet and eight inches.
Waiver for Required Security Gate Turnaround: Section 10-14.201 of the Hayward Municipal Code also requires there to be a turnaround area in front of a security gate that allows vehicles the ability to turnaround and exit the complex facing forward, as opposed to backing out onto the roadway if they are not granted access through the gate. Again, providing the required turnaround space would necessitate the removal of significant portions of four of the development’s townhomes. Thus, the applicant requests an additional waiver to eliminate the required turnaround area.
As shown in Attachment II, additional conditions of approval have been added to reduce some of the potential impacts of these requested waivers. This includes restricting parking along Manon Avenue near the project driveways to allow for vehicular queuing space. In addition, the project is conditioned to designate a single-entry gate and single exit gate for the development to maintain one-way traffic flow. In response to the Planning Commission’s discussion on the security gate at their February 22 public hearing, an additional condition of approval was added to require that mirrors be added to both gates to further improve visibility for vehicles entering and existing the property.
Park Impact Fee. As conditioned, the project is subject to park impact fees. Based on the bedroom counts of each townhome, the total fee would be $479,774 per the City’s current Master Fee Schedule.
Staff Analysis
Staff believes the Council can make the findings required to approve the Vesting Tentative Tract Map and modified Affordable Housing/Density Bonus Plan. The proposed subdivision map is consistent with the requirements of the City’s General Plan, Zoning Ordinance, and Subdivision Ordinance. Further, it would not result in any modifications to the previously approved plans, other than relocating the security gate as permitted by State Density Bonus Law, and would simply enable the property owner to sell each of the units individually as condominiums. The proposed subdivision design does not require any variances from or exceptions to the applicable standards for a townhouse-style condominium development. For these reasons, staff believes that the Council can make the findings to approve the project.
Environmental Review
In 2014, the City certified the EIR for the Hayward 2040 General Plan. Pursuant to CEQA Guidelines Section 15183, projects consistent with the development density established by existing zoning, community plan, or general plan policies for which an EIR was certified may not require additional review unless there may be project-specific effects that are peculiar to the project or site that were not adequately addressed in the EIR for the General Plan.
An Infill Consistency Checklist (Attachment VIII) was prepared as part of the previously approved Zone Change, Site Plan Review, and Density Bonus application, which tiered off the Hayward 2040 General Plan EIR. The checklist concluded that the proposed project would not have any new or more significant effects on the environment than were previously analyzed in the General Plan EIR. As a result, no further environmental analysis was required.
The proposed Vesting Tentative Tract Map and modified Affordable Housing/Density Bonus Plan propose no changes to the buildings, landscaping plan, grading, and site improvements that were analyzed in the previous Infill Consistency Checklist. As a result, no further environmental analysis is required.
ECONOMIC IMPACT
The proposed development would have a positive economic benefit in that it would result in the development of a vacant infill parcel with 22 new ownership townhome units that would improve the appearance of the site and help to increase the property values in the adjoining residential neighborhood. The project’s residents would generate additional retail sales tax for the City through their everyday expenditures at local businesses, and the project would also generate temporary construction jobs during its development.
FISCAL IMPACT
The project would generate annual revenue from property taxes while requiring annual costs related to City services, including but not limited to Fire, Police, Library and Maintenance Services. Communities sometimes attempt to quantify positive or negative fiscal impacts to help decide if a particular development project should move forward. While an important planning tool for city resource allocation, this data does not account for other elements or community benefits the project may provide that address Council priorities and policies. These benefits, such as increasing housing supply to help stabilize housing costs, promoting equity and housing opportunities for lower income households, and adding new consumers to the City’s population that can support its businesses and help attract new ones, offer possible offsets for negative fiscal impacts.
STRATEGIC ROADMAP
This project supports the Strategic Priority of Preserve, Protect and Produce Housing for All in that it would add 22 new townhomes to the City’s housing stock, including two ownership units that would be affordable to very low-income households. It would also protect the existing homes in the surrounding neighborhood by introducing a compatible land use that complements the existing development pattern of the area.
SUSTAINABILITY FEATURES
The proposed project would comply with the California Green Building Standards Code (CALGreen) and the City’s Reach Code by featuring all-electric townhomes that contain no gas-powered appliances, garages with parking spaces that are electric vehicle-ready, and solar roofs on each building. All landscaping is subject to the Bay-Friendly Water Efficient Landscape Ordinance.
PUBLIC CONTACT
On September 15, 2023, the Planning Division mailed 267 Notices of Receipt of Application (NOR) for the proposed Vesting Tentative Tract Map and Affordable Housing/Density Bonus Plan modification to the owners and occupants of all properties within 300 feet of the site, as well as to the Harder-Tennyson Neighborhood Task Force, Harder-Tennyson Community (HACTO), Tennyson-Alquire Neighborhood Task Force, and the South Hayward Parish. No comments from the public were submitted in response to the NOR.
On February 9, 2024 and March 8, 2024, a total of 267 Notices of Public Hearing were mailed to owners and occupants of properties within a 300-foot radius of the project site, as well as to the same neighborhood groups who received the NOR. Public hearing notices were also published in The Daily Review newspaper on these same dates. As of the date this staff report was published, staff has not received any comments from the public regarding the proposed Vesting Tentative Tract Map and Affordable Housing/Density Bonus modification.
NEXT STEPS
If approved, the Council’s decision would take immediate effect, and the applicant would then be able to proceed with an application for a Final Map.
Prepared by: Elizabeth Blanton, AICP, Senior Planner
Recommended by: Sara Buizer, AICP, Development Services Director Approved by:
_________________________________________________
Kelly McAdoo, City Manager
Planning Commission Public Hearing, September 8, 2022: https://hayward.legistar.com/LegislationDetail.aspx?ID=5812105&GUID=D1DC63F7-08D1-4DF3-A42B-4521513595C4&Options=&Search= Council Public Hearing, October 11, 2022: https://hayward.legistar.com/LegislationDetail.aspx?ID=5866923&GUID=934ECDC0-2C9B-4063-80DB-77E9855E24B1&Options=&Search= Planning Commission Public Hearing, February 22, 2024: https://hayward.legistar.com/LegislationDetail.aspx?ID=6516804&GUID=45FE06F3-5D63-4359-AA17-D5DEC3B7133F&Options=&Search= Hayward 2040 General Plan
Hayward Municipal Code Chapter 10, Article 17 – Affordable Housing Ordinance Hayward Municipal Code Chapter 10, Article 14, Security Gate Regulations: https://library.municode.com/ca/hayward/codes/municipal_code?nodeId=HAYWARD_MUNICIPAL_CODE_CH10PLZOSU_ART14SEGARE City Council Resolution 22-251: https://portal.laserfiche.com/Portal/DocView.aspx?id=396316&repo=r-b6d2994c Hayward 2040 General Plan Final Environmental Impact Report: https://www.hayward-ca.gov/General%20Plan%20Final%20Environmental%20Impact%20Report