City Council Agenda Report
December 2, 2025
TO: Honorable City Council
FROM: Jesus M. Gomez, City Manager
BY: Alex Hamilton, Interim Community Development Director Gabriel Salazar, Senior Planner
SUBJECT: ORDINANCE NO. 25-1763 - ZONING TEXT AMENDMENT NO. 2025-02 - TO AMEND TITLE 17 OF THE NORWALK MUNICIPAL CODE TO ADD LOT CONSOLIDATION INCENTIVES TO COMPLY WITH THE ADOPTED 2021- 2029 HOUSING ELEMENT
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.
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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 Zoning Text Amendment, 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 waiver.
Of the cities studied, staff recommend 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 No. 2025-02 will establish a code procedure, applicability, identify the type of eligible lots, and outline the incentives available. The draft ordinance (Attachment 1, 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.
The Planning Commission considered and recommended adoption of Zoning Text Amendment No. 2025-02 on November 12, 2025. The Planning Commission inquired if any active projects would be eligible for this incentive. Interim Community Development Director Alex Hamilton responded that there are not, but that sites involving multiple parcels sitting vacant such as 12217 Rosecrans Avenue may be able to benefit from this new program. No public comments were received during the Planning Commission public hearing regarding this matter.
Fiscal Impact:
N/A
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Citizens Advised:
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 November 7, 2025. No public comments were given during the Planning Commission meeting.
Strategic Plan 2023 Implementation:
The recommended actions will further the City’s Strategic Plan Goal 3 to diversify and grow the economy by providing development incentives for welcoming new residents to Norwalk.
Recommended Action:
Staff recommend City Council:
a. introduce by title only Ordinance No. 25-1763, AN ORDINANCE OF THE CITY OF NORWALK AMENDING TITLE 17 (ZONING) OF THE NORWALK MUNICIPAL CODE
TO ADD LOT CONSOLIDATION INCENTIVES AND TO COMPLY WITH THE ADOPTED 2021-2029 HOUSING ELEMENT; and
b. consider and find the project 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.
Attachments:
1. Ordinance No. 25-1763 (Zoning Text Amendment No. 2025-02)
2. City's 6th Cycle of Housing Element Is available at the following link: HEU 2021-2029
3. Planning Commission Staff Report dated November 12, 2025 (without attachments)
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