House National City
City Council Briefing
Proposed Density Bonus
Opt-In Incentive Program
Contents
The Program and Goals
House National City
Objectives
Meeting Our Goals
Development
Steps we took to develop the program
Financial Feasibility
Analysis behind program development
Inclusionary Housing
Overview and steps to take
Next Steps
Implementation v
House National City is a new, optional program to incentivize affordable and mixed income housing in strategic areas across the city.
In exchange for affordable housing, qualifying projects receive a Floor Area Ratio (FAR) bonus.
3 The Program
4 Add more affordable and mixed-income housing, both rental and for-sale options, for current National City residents and new residents.
Our Goal
Our Objectives
5 Achieve Climate Action Goals
Reduce Vehicle Miles Traveled
Supports CAP goals
Provide Community Benefits
Call for enhanced streetscapes and design,
relocation assistance, and replacement of
existing units
Support Land Use Goals
Support the 15-minute city concept of
Intraconnect and the land use goals of the
General Plan and TODO
Tailor Plan to National City
Provide National City residents priority,
homeownership opportunities, and a range
of unit sizes
Incentivize Affordable Housing
Incentivize new affordable housing for all
generations of National City residents
6 Our Objectives
• Online Survey
• Webinars (7 total)
• Telephone Office Hours
• Interactive Map
• Stakeholder Interviews
• Planning Commission
& City Council Briefings
• Workshops & Hearings
(for Housing Committee, Planning
Commission, and City Council)
Community Outreach Completed to Date: 2020 – 2023
Our Objectives
7 The Specifics
• 10% of post density units
for 50% Area Median Income or less
• 10% of post density 3-bedroom
units at 80% area median income or less
• National City Residents
Local Preference Policy
• 75% of new units
to National City residents
• Multifamily or mixed-use parcel
within Transit Priority Areas
• Zoned at least 20 units
per acre – no impact to single-family
• FAR Bonus of 2.5 or 4
depending on location
• Height limits remain the same
based on zone
Our Objectives
8 An Example
• RM-1 Zoning
45 Height Limit
• 7,000 sf parcel (23 du/ac)
4 units
• FAR Tier 1 = 4.0
28,000 sf = 35 units at 800 sf (2BDR units)
• Post density restricted
affordable units at 50% AMI = 4
• Max number of stories
4 • DIF charged for 28 units
instead of 4
Our Objectives
9 Income Level 2013 2014 2015 2016 2017 2018 2019 2020 Production Totals
RHNA Allocation
by Income Level
Very Low
Deed
Restricted 0 0 0 45 0 0 0 65 110 465
Non-Deed
Restricted 0 0 0 0 0 0 0 0 0
Low
Deed
Restricted 8 108 0 0 0 0 0 71 187 353
Non-Deed
Restricted 0 0 0 0 0 0 0 2 2
Moderate
Deed
Restricted 0 0 0 0 0 0 0 0 0 327
Non-Deed
Restricted 0 1 0 46 116 0 0 0 163
Above Moderate 67 16 143 12 7 60 166 186 657 718
Total Units 75 125 143 103 123 60 166 324 1119 1863
Housing Production Totals
www.nationalcityca.gov/fgpu
Our Objectives
10 Income Level 2021 2022 Production
Totals
RHNA Allocation
by Income Level
Very Low
Deed
Restricted
0 33 33 645
Non-Deed
Restricted
000
Low
Deed
Restricted
1 113 114 506
Non-Deed
Restricted
0 28 28
Moderate
Deed
Restricted
000 711
Non-Deed
Restricted
000
Above Moderate 54 131 185 3575
Total Units 55 305 360 5437
Housing Production Totals
11 Our Objectives
Accessory Dwelling Unit Permits and Construction, and Open Space Requirements Common Usable
Open Space Private Usable Open Space Outdoor Space Dimensions 3 + Units 300 sq. ft. / du
Private Usable Open Space may be
substituted for Common Usable Open Space
(Substitution Requirements Apply)
40% None less than
20 ft.
Westside
Specific
MCR-1
and CL 300 sq. ft. / du
MCR-2 300 sq. ft. / du 75 sq. ft. / du for 3+ units
2022
42 Permits 6 Under Construction 3 Have been Constructed 2023
16 Have been Constructed
12 Parking Capacity
• Angled Parking
• Oversized
Vehicle Parking
Prohibitions
Parking Utilization
• Online Permit Parking
Management System
• Residential Permit
Parking
• Parking Meters
Parking Authority
• Key role in ensuring
the parking
management
program is
sustainable
Parking Enforcement
• Route
Management
• Enforced
Technology
Progress Made
Installed angled parking
Installed 1-hour time restricted
parking
Installed 30-minute parking
Researched and piloted License Plate
Recognition technology
Implemented an on-line parking
permitting system
Researched parking meter
technologies
Reviewed and updated parking
citations and fee schedule
Drafted update to the Municipal
Code
Our Objectives
Parking
13 Development of the Program
• Two-years in the making
• WSP, GPS, KMA
• City Staff
• Community
• Appointed and Elected Officials
• Best practices
• Economic feasibility study
• Community engagement
• Analysis and recommendations (development of the Plan) House National City
14 KMA Market and Financial
Feasibility Evaluation
Challenges
Research market and development trends
Evaluation of test sites
Financial pro forma to test scenarios
Limited market-rate multi-family
Base Case scenarios not feasible in current
market
Current financial climate
Evaluation
15 House National City Program Feasibility
Positive Impacts Feasibility
• Waivers of DIFs
• Affordable units do not
exceed 10% of post-bonus
unit total
• Waivers of base zone
regulations
Key Factors
• Higher market rents per SF can
be achieved for smaller units
• Greater density is achieved
without a more costly
construction and/or parking type
• Viable under certain site,
planning, and market
conditions
• Formulated to strike the
balance between capturing the
value enhancement for
community benefits and
providing incentives for new
development
Which program features have
a positive impact on project
feasibility?
When are developers likely to
opt into the program?
Is the Program feasible?
Inclusionary Housing Programs
Inclusionary programs
in San Diego County vary
% set aside
%AMI
Production requirement vs.
in-lieu fee
Off-site alternatives
Inclusionary requirements on
urban sites are more
challenging
In-fill sites typically have
improvements with
remaining value
Inclusionary requirement
makes projects less feasible
unless combined with
offsetting incentives
16 Program Features
Inclusionary requirements
most feasible on greenfield
sites
Eastern Chula Vista
SR 56 corridor
Carlsbad
San Diego projects typically pay
in-lieu fee unless they are using
a density bonus.
November 2023 17
Inclusionary Feasibility Studies
Initiation Analysis In-Lieu Fee Policy Options Report
Identify potential
inclusionary
housing ordinance
requirements
Test the financial
feasibility of
alternative target
set-asides / AMI
levels
Calculate
appropriate fee
levels
Project Site
threshold
• On-site vs. offsite compliance
• Eligibility to pay
in-lieu fee
• Alternative
means of
compliance
Prepare report
summarizing
technical analysis
&
recommendations
for program
requirements
Schedule: 1-2 years Budget: $125,000-$200,000
* Excludes planning, environmental, legal, and community engagement Study may need to
comply with AB 1505
Mandatory Inclusionary Policy Steps
If The City wants to pursue
1. Existing conditions analysis
2. Analyze best practices
3. Feasibility study
4. Public outreach
5. Develop recommendations
and alternatives
6. Proceed with accepted
recommendations
7. Traffic analysis
8. CEQA review
9. General Plan Amendment
10. Develop report
11. Develop municipal code
changes
12. Approvals in public hearings
18 Steps
12-16 Months
Timeline
Order of Magnitude:
$800K – $1.2M
(Approximate)
Cost
19 Climate Action
Goals
Reduce Vehicle
Miles Travelled and
support CAP goals
Community
Benefits
Call for enhanced
streetscapes and
design, relocation
assistance, and
replacement of
existing units
Land Use
Goals
Support the
15-minute city
concept of
Intraconnect and
the goals of the
General Plan and
TODO
National City
Tailored
Provide National City
residents priority,
homeownership
opportunities, and a
range of unit sizes
Affordable
Housing
Incentivize new
affordable housing
for all generations of
National City
residents
Why House National City
Next Steps
How is this implemented?
20 Rezone
Municipal
Code
Amendment
Approval
Hearings
January 2024
House National
City
Development
Guide
Interactive
Zoning Map
Team
Coordination
Developers,
City Staff,
& Stakeholders
Thank You
21 18th Street
Rezone to:
Mixed-Us Transition
(MXT) and Open Space
(OS)
Density:
24 DU/AC
Height:
4 Stories/45ft
4th Street
Rezone to:
Medium Density
Multi-Unit Residential
(RM-1)
Density:
23 DU/AC
Height:
4 Stories/45ft
D Avenue
Rezone to:
Medium Density
Multi-Unit Residential
(RM-1)
Density:
23 DU/AC
Height:
4 Stories/45ft
Hospital
Area
Rezone to:
Minor Mixed-Use
Corrido (MXC-1)
Density:
48 DU/AC
Height:
5 Stories/65ft
16th Street
Rezone to:
Mixed-Use Overlay
Density:
24 DU/AC
Height:
5 Stories/65ft
Alternate
Project
Location
Alternative