LINC I STREET
APTS LLP
Transfer of Property
Disposition & Development
Agreement
Affordability Covenants
Loan Agreement
Density Bonus
PROPOSED
PROJECT
LOCATION
1823 “I” Street 031-074-009
1815 “I” Street 031-074-010
205 West 18th St 031-074-011
211 W. 18th Street 031-074-012
202 W. 19
th
Street 031-074-008
General Plan: High Dens ity (HD) Res idential Zoning: R -4 2 NWC of 18th & I Streets
SWC of 19th & I Streets
5 Parcels
PROPER TY
DISPOSITION
• The City’s Redevelopment Agency purchased the parcels in the early 2000’s.
• Prior units on the property - demolished between 2009 and 2010. • Upon the dissolution of the Redevelopment Agency, the property was transferred to the City’s Public Financing and Economic Development Authority (PFEDA).
• In 2012, the PFEDA transferred the property back to the City as the Housing Successor Agency to the former Redevelopment Agency. • In 2020, AB 1486 – Surplus Land Act
• In 2021 – Affordable Housing RFP
• The City has been in negotiations with Linc Housing Corp. to purchase the property for $1 per parcel
• In 2022 - The City committed Permanent Local Housing Allocation (PLHA) funds to this project.
• 2024 – Public Hearing – 33433 Report
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100%
AFFORDABLE
The Project
THE PROJECT
• 54 – Apartments (1 Manager’s Unit)
• 53 – 1 bedroom/1 bath units
• Affordable for those 30% to 60% of the
Area Median Income (AMI)
• Developer to enter into a Regulatory
Agreement with the City to ensure
affordability for at least 55 years.
• The developer has applied for a Density
Bonus - the Planning Commission heard
and recommends approving it.
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SITE PLAN
Building A
Four Stories
39 units (38 1 bed/1bath & Manager’s Unit)
Building B
Three Stories
15 Units (1 bed/1 bath)
6 7
8 View from corner of 18th &
I Streets
View from corner of 19th & I Streets
DENSITY BONUS
• CA Density Bonus Law adopted in 1976
• Intended to address CA growing affordable
housing needs
• Law amended several times
• The City originally adopted the Density Bonus
Ordinance in 1993
• Amended several times, most recently in 2023
to remain in agreement with state law
• A project that meets the requirements of state
law for providing affordable housing is
allowed an increase in density “by right.”
• The amount of the density bonus is
determined based on the percentage of
affordable housing units provided at each
income level.
• The increase in density may exceed what is
allowed by the General Plan and Zoning
designations for the project site.
• For projects providing 100% affordable
housing, within one-half mile of a major
transit stop, there are no restrictions on
density.
• The City may require an agreement to
memorialize the affordability component of
the development, or any other incentives given
to assist the project
9 CONCESSIONS & INCENTIVES
The number of Concessions allowed is based on the % of affordable units. The maximum number of concessions allowed for a project is 4.
A concession or incentive is defined as:
1. A reduction in site development standards or modification of zoning requirements or architectural design requirements that exceed the minimum State building standards, such as reduction in setback, square footage, or vehicular and bike parking space requirements. The requested concession or incentive must result in identifiable and actual cost reduction to provide for affordable housing costs or rents.
2. Approval of mixed-use zoning for housing project if associated commercial, office, industrial or other land uses will reduce the cost of the housing project, and existing or planned development in the immediate area.
3. Other regulatory incentives or concessions that result in identifiable and actual cost reductions to provide for affordable housing costs, which may include the provision of direct financial incentives or land for housing development by the City.
10 If a project provides low-income housing and meets the requirements of the Density Bonus Law, the City is required to provide one or more “concessions” or “incentives” to a project that qualifies for a Density Bonus.
100% AFFORDABLE
UNITS
Projects that provide 100% affordable units (other than the manager’s unit) that are restricted to very low-, low- and moderate-income residents and are within one-half mile of a transit stop, are eligible for the following:
• Four Concessions/Incentives
• Unrestricted Max Density
• A height increase of up to an additional 3 stories or 33 ft. • Relief from parking requirements
11 If a project uses the unrestricted density option, the project would not be eligible for the waiver or reduction of any development standards which would otherwise be available. 12 REQUIRED TO GRANT CONCESSIONS &
INCENTIVES
The City is required to grant the concession or incentive proposed, unless it finds one of the following:
• That the proposed concession or incentive does not result in identifiable and actual cost reductions; or,
• Would cause a public health or safety problem; or,
• Would cause an environmental problem; or,
• Would harm historical property; or,
• Would be contrary to law
The City has the burden of proof in the event it denies a requested concession. Financial incentives, fee waivers, and reductions in dedication requirements may be, but are not required to be granted by the City
1. Reduction in Exterior Yard Setbacks
2. Relief from Providing Outdoor Private Space
3. Allow Roof-Mounted Mechanical Equipment
4. Reduction in Required On-Site Trees
REQUESTED CONCESSIONS
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REDUCTION IN
SETBACK
R-4 zone requires 15-foot setbacks for exterior, front
yards; a 10-foot setback for exterior side yards on
corner lots and other yards may have 5-foot
setbacks.
MMC Section 20.46.040 Building construction shall
not exceed the plan established by 1:1 height and
setback ration from any exterior property line of a lot or parcel, for more than 50 percent of the allowable
building area at any established distance from said
exterior property line.
Their requested concession would allow a 5 -foot setback on all yards 14 FINDINGS
15 • Finding A – State Density Bonus Law
• Finding B – Requested Density
The project is 100% affordable and within one-half mile of a major transit stop. State law prohibits maximum density controls. Project would include 54 units.
• Finding C – Parking
The project is 100% affordable and within one-half mile of a major transit stop. State law prohibits required on-site parking. 3 parking spaces would be provided with Building A.
FINDINGS
16 • Finding D – Building Height
100% affordable & within ½ mile of a major transit stop.
State law grants a height increase of 3 additional stories or 33 feet. Building A would be 48 feet at highest point and Building B would be 38 feet at highest point.
• Finding E – Required Findings from Merced Municipal Code Section 20.56.080 (C).
• Finding F – Concessions and Waivers
The applicant is seeking 4 concessions. Outlines the
requested concessions and provides justification for each request.
• Finding G – Environmental Review – Categorical Exemption
COUNCIL ACTION
REQUESTED
• Adopt Resolution – Approving the Disposition &
Development Agreement
• Approving the sale of the properties
• Accepting the Summary Report pursuant to section 33433 of the CA Health & Safety Code
• Finding that the Regulatory Agreement is exempt from
CEQA
• Approval of Environmental Review #23-19 (Categorical
Exemption)
• Approving the Density Bonus #23-01
• Authorizing the PLHA Loan Agreements & allow CM to
make minor changes if needed
• Authorizing the CM to execute the agreements subject to CA’s approval as to form
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