Planning Commission
Agenda Report
November 12, 2025
TO: Planning Commission
FROM: Alex Hamilton, Interim Director of Community Development BY: Gabriel Salazar, Senior Planner
SUBJECT: Zoning Text Amendment No. 2025-02 to amend Title 17 of the Norwalk Municipal Code to add a new chapter for Lot Consolidation Incentives.
Environmental: Consider and find that the project is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 153061 (b)(3) of the Guidelines.
Recommendation:
That the Planning Commission:
1. Adopt Resolution No. 25-15 to recommend approval to City Council for Zoning Text Amendment (ZTA) No. 2025-02; and
2. Consider and find that the project is exempt from the California Environmental Quality Act (CEQA) Guidelines pursuant to Section 15061 (b)(3) of the CEQA Guidelines in that it can be seen with certainty there is no possibility that the activity in question may have significant effect on the environment.
Authority:
Section 65855 of the California Government Code states that the Planning Commission shall make a written recommendation on the adoption or amendment of the Zoning Ordinance.
Attachment No. 3
Norwalk Planning Commission November 12, 2025
Zoning Text Amendment No. 2025-02 Page No. 2 1 6
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Section 17.02.260.D of the Norwalk Municipal Code (NMC) stipulates that the Planning Commission render its recommendation on a Zoning Text Amendment, including the reasons for the recommendation to the City Council.
Introduction/background:
The Zoning Text Amendment No. 2025-02 (ZTA No. 2025-02) to add Lot Consolidation Incentives into Title 17 of the NMC is introduced to ensure the City of Norwalk is compliance and consistent with the adopted Sixth Housing Element Update (HEU), adopted in February 2023 and recertified in September 2025. As part of the HEU, the City included the establishment of Program 3.1 Lot Consolidation, which includes the specific commitment to develop incentives for lot consolidations.
Lot Consolidation Incentives
As part of Program 3.1 (Lot Consolidation), as described below, the program requires the City to establish an incentive program which encourages lot consolidation of smaller parcels to accommodate larger residential and mixed-use development projects on vacant and/or underutilized sites.
Table 53: AFFH Program Mix
Program Specific Commitment Timeline Geographic
Targeting
2021-2029 Metric
Program 3.1 – Lot
Consolidation
Encourage lot consolidation of
smaller parcels to accommodate
larger residential and mixed-use
development projects on vacant
and/or underutilized sites through
provisions in the Zoning Code. To
facilitate lot consolidation, the City
will:
-Continue to process lot line
adjustments ministerially.
-Develop incentives, which may
include density bonus and/or flexibility
in development standards.
-Outreach to developers to promote
incentives and development
opportunities (see also Program 2.1
and 2.2).
-Develop incentives
for lot consolidation
by the end of 2023
-Annually outreach to
developers
Citywide Facilitate the
development of 200
new units through lot
consolidation
The proposed zoning text amendment would effectuate the development of incentives for lot consolidation, which include density bonus and/or flexibility in development standards.
In the development of the proposed ZTA, staff studied various cities that have codified lot consolidation incentives into their municipal code’s zoning ordinance. Specifically, staff examined the cities of Saratoga, San Dimas, Palo Alto, and Concord. Each of these cities developed a lot consolidation incentive, each varied. For instance, the City of Concord’s incentive includes a parking reduction, an increase in compact parking spaces, and assistance with marketing. The City of San Dimas includes a lot combination, merger fee Norwalk Planning Commission November 12, 2025
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waiver. Of the cities studies, staff recommends the lot consolidation incentive most suitable and appropriate to the City of Norwalk.
Zoning Text Amendment:
With the adoption of the proposed lot consolidation incentives ordinance, it will bring the City into compliance with HEU and incentivize new, creative infill residential development.
The proposed ZTA will establish a code procedure, applicability, identify the type of eligible lots, and outline the incentives available. The draft ordinance (Attachment A, Exhibit A) includes the parameters for its application. It is anticipated that lot consolidation incentives will be associated with residential projects involving mixed-use housing and multi-family development projects.
Similar to density bonus, this is an important and necessary incentive to facilitate additional housing. It is also important to note that other factors such as land value, project economics, land cost, and labor and materials all play a role in residential development.
The zoning text amendment consists of the following components:
The proposed text amendment will create a new section, NMC Chapter 17.04.500 for Lot Consolidation.
The proposed text amendment will provide an incentive of 10 percent additional units to projects where two or three lots are combined and an incentive of 15 percent additional units to projects involving the combination of four or more lots when the such percent of units are affordable low-income units.
Public Notification:
Notice of this public hearing was published in The Norwalk Patriot and posted at the City’s three designated posting sites and the City website on October 17, 2025 (Attachment C).
Environmental Assessment:
The project is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061 (b)(3) (Common Sense Exemption), where it can be seen with certainty there is no possibility that the activity in question may have significant effect on the environment on the environment.
Summary:
ZTA No. 2025-02 involves the establishment of a new incentive for lot consolidations which is consistent with the 2021-2029 HEU. The purpose of the lot consolidation incentives is Norwalk Planning Commission November 12, 2025
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to encourage and facilitate housing development. The lot consolidation incentives is of critical importance for the City to be in compliance with the HEU. Therefore, Staff recommends that the Planning Commission recommend approval of the project to the City Council.
Attachments:
A. Resolution No. 25-15 (Zoning Text Amendment No. 2025-02), including Exhibit “A” Draft Ordinance and Zoning Text Amendment No. 2025-02 – Legislative Draft B. City’s 6th Cycle of Housing Element is available at the following link: HEU 2021-2029 C. Public Hearing Notice is available at the following link: Public Notice