Planning and Building Agency
www.santa-ana.gov/pba
Item # 17
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
October 20, 2026
Topic: Density Bonus Agreement No. 2026-0005 – Aspen Woods (2030 E. Fourth Street)
AGENDA TITLE
Density Bonus Agreement No. 2026-0005 – Aspen Woods (2030 E. Fourth Street)
RECOMMENDED ACTION
1. Adopt a resolution approving Density Bonus Agreement No. 2026-0005; RESOLUTION NO. 2026-XXX entitled A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING DENSITY BONUS AGREEMENT NO. 2026-0005 FOR A THREE-STORY RESIDENTIAL TOWNHOUSE DEVELOPMENT CONSISTING OF 40 RESIDENTIAL UNITS, INCLUDING FOUR UNITS PROPOSED
AS AFFORDABLE TO MODERATE-INCOME HOUSEHOLDS, FOR THE
PROPERTY LOCATED AT 2030 E. FOURTH STREET (APN: 400-082-02)
2. Authorize the City Manager to execute a Density Bonus Agreement with C&C N. Harbor, LLC, for a 55-year covenant term, for a for-sale residential townhome development consisting of forty (40) residential units, including four (4) units designated as affordable to moderate-income households, at 2030 E. Fourth Street (Agreement No. A-2026- XXX); and
3. Determine that, pursuant to the California Environmental Quality Act (CEQA) and the CEQA Guidelines, the recommended action is exempt from further environmental review pursuant to Public Resources Code Section 21080.66, enacted through Assembly Bill No. 130 (AB 130).
GOVERNMENT CODE §84308 APPLIES: Yes
EXECUTIVE SUMMARY
C&C N. Harbor, LLC (“Property Owner” and “Applicant”), represented by Mike VanBuskirk of VBK Consulting (application-listed contact person), is requesting approval of Density Bonus Agreement (DBA) No. 2026-0005 to facilitate the redevelopment of the property located at 2030 E. Fourth Street with a three-story, 40-unit, for-sale townhome community, including four deed-restricted affordable units for moderate-income Density Bonus Agreement No. 2026-0005 – Aspen Woods (2030 E. Fourth Street) October 20, 2026
households within the Metro East Mixed-Use Overlay Zone (MEMU) (“Project”). The Project would demolish seven existing office buildings to accommodate the proposed residential development.
The Applicant requests approval of a Density Bonus Agreement (DBA) pursuant to Government Code Section 65915 to memorialize the Project’s affordable-housing commitment and applicable development standards. The Project will reserve four (4) dwelling units (10 percent (10%) of the total units) for moderate-income households, thereby qualifying for benefits under State Density Bonus Law. However, the Applicant is not requesting a numerical density bonus, incentive, or concession. The Project will utilize one waiver to reduce the required publicly accessible open space from 6,979 square feet to 3,210 square feet, as memorialized through the Density Bonus Agreement pursuant to California Government Code Sections 65915 through 65918 and Santa Ana Municipal Code Sections 41-1600 through 41-1607. In accordance with Government Code Section 65915, the City’s discretion and ability to deny a Density Bonus Agreement are severely limited if the project satisfies the objective standards set out by the State.
As proposed, Staff recommends approval of the Applicant’s request because the Project is consistent with the General Plan, the MEMU Overlay Zone, and State Density Bonus Law and would redevelop an underutilized office site with new ownership housing, including deed-restricted affordable units, while advancing the City’s housing goals and supporting a pedestrian-oriented development along the Fourth Street corridor.
Planning Commission Action
On September 14, 2026, the Planning Commission held a public hearing for the Project and voted 6:0:1, with Commissioner Oliva absent, to approve Site Plan Review No. 2026- 0004, Vesting Tentative Tract Map No. 2026-0009, and to approve the requested waiver from the development standards as part of the Density Bonus Agreement No. 2026-0005.
Pursuant to SAMC Section 41-1607, the Planning Commission made the required findings to approve the waiver. Following this action, the Density Bonus Agreement requires City Council approval.
DISCUSSION
Table 1: Project and Location Information
Item Information
Project Address and Council Ward 2030 E. Fourth Street – Ward 3 Nearest Intersection Fourth Street and Golden Circle Drive General Plan Designation District Center – Medium High (DC - 3) Zoning Designation Professional (P); Village Center District (VCD) within the Metro East Mixed Use Overly Zone (MEMU)
Density Bonus Agreement No. 2026-0005 – Aspen Woods (2030 E. Fourth Street) October 20, 2026
Item Information
North Office
East Office
South Office Surrounding Land Uses
West Office
Property Size 79,892 square feet (1.83 acres)
Existing Site Development Seven two-story office buildings totaling approximately 39,553 square feet
Use Permissions Multi-family Residential
Zoning Code Sections Affected
Uses Chapter 41, Article XVI.I (Density Bonus) and Village Center District within the Metro East Mixed Use
Overlay Zone (MEMU).
Project Description
The proposed Project consists of the redevelopment of an approximately 1.83-acre site with a three-story, 40-unit, for-sale townhome community. To accommodate the development, the existing seven office buildings and associated surface parking would be demolished.
The Project includes a mix of two-, three-, and four-bedroom townhomes ranging in size from approximately 1,211 to 1,813 square feet to accommodate a variety of household sizes.
Eight of the proposed townhomes (Plan 3X) include ground-floor flex/commercial spaces, consisting of four units fronting Fourth Street and four units fronting Golden Circle Drive.
Each flex space is accessed independently from the unit porch or primary entry and is separated from the main living area. The flex spaces are intended to provide adaptable spaces that may initially function as residential living areas, home offices, or studios and are designed to accommodate future conversion to neighborhood-serving commercial or live/work uses, subject to applicable City review and approvals, as market conditions evolve.
The development also includes four deed-restricted affordable units for moderate-income households, representing 10 percent (10%) of the total residential units. The affordable units are integrated throughout the development rather than concentrated in a single location.
Table 2: Residential Unit Summary
Unit Floor Type Number of Bedrooms Size in Square Feet Number of Units Plan 1 2 1,211 4
Plan 2 2 1,297 4
Plan 3 3 1,722 8
Plan 3X 3 1,722 8
Plan 4 4 1,813 16
Total 40
Density Bonus Agreement No. 2026-0005 – Aspen Woods (2030 E. Fourth Street) October 20, 2026
Table 3: Affordable Residential Unit Summary
Unit Floor Type Number of Bedrooms Size in Square Feet Number of Units Plan 1 2 1,211 1
Plan 3 3 1,722 1
Plan 3x 3 1,722 1
Plan 4 4 1,813 1
Total 4
Site Design, Parking, and Development Standards
The Project is designed as a five-building, three-story townhome community organized around a private internal drive accessed from Golden Circle Drive. The site design emphasizes pedestrian connectivity through landscaped paseos, sidewalks, and open space areas connecting the residential units to Fourth Street and Golden Circle Drive. Eight ground-floor flex spaces are located along the Fourth Street and Golden Circle Drive frontages to support an active and pedestrian-oriented streetscape. The Project features a contemporary architectural design with varied building massing, articulated façades, balconies, enhanced entries, and a combination of stucco, composite siding, brick veneer, metal accents, and concrete tile roofing.
The Project proposes 100 on-site parking spaces, consisting of 80 enclosed garage spaces and 20 guest parking spaces. Because the Project includes deed-restricted affordable housing, the Applicant is utilizing the parking ratios established by Government Code Section 65915(p), which are available by right under State Density Bonus Law and do not constitute a concession or waiver. As shown in Table 4, the Project requires 76 spaces under State Density Bonus Law and provides 100 spaces, exceeding the applicable requirement by 24 spaces. The Project also exceeds the parking otherwise required under the MEMU.
Table 4: Required Parking Comparison
Standard Parking Ratio Parking Calculation / Spaces Required Residential
Studio 1.0 space 1 x 0 units 0
One-Bedroom 1.0 space 1 x 0 units 0
Two-Bedroom 1.5 spaces 1.5 x 8 units 12
Three-Bedroom 1.5 spaces 1.5 x 16 units 24
Four-Bedroom 2.5 spaces 2.5 x 16 units 40
State
Density
Ratios
TOTAL Required Total 76
Residential
Unit (including
guest spaces) MEMU 2.25 spaces 40 x 2.25 90
Total Required Total 90
Overall Total Provided Total 100
Density Bonus Agreement No. 2026-0005 – Aspen Woods (2030 E. Fourth Street) October 20, 2026
Each residential unit will be assigned a two-car enclosed garage for a total of 80 resident parking spaces. The remaining 20 off-street open parking spaces will be designated for guest parking and are primarily located near the Project entrance from Golden Circle Drive.
Resident parking will be secured behind a controlled-access gate, while guest parking will remain accessible to visitors.
The Project also includes frontage and infrastructure improvements along Fourth Street and Golden Circle Drive, including new curb, gutter, sidewalk, landscaping, pavement restoration, and utility improvements. Final design and construction of these improvements will be subject to review and approval by the Public Works Agency.
The Project provides private, common, and publicly accessible open space through balconies, landscaped courtyards, paseos, common amenity areas, and landscaped areas along the Fourth Street and Golden Circle Drive frontages. As summarized in Table 5, the Project complies with the applicable MEMU development standards for density, lot size, floor area ratio, building height, setbacks, frontage type, private/common open space, and parking. The Project proposes 3,210 square feet of publicly accessible open space where approximately 6,797 square feet is required. Accordingly, the Applicant is requesting one waiver through the Density Bonus Agreement to permit the reduced publicly accessible open space.
The Project’s consistency with the applicable Metro East Mixed-Use Overlay Zone (MEMU) development standards, including those standards addressed through the requested waiver, is summarized in Table 5 below.
Table 5: Development Standards
Development Standards (MEMU)
Standard Required/Allowed Provided
Density 90 du/ac 22 du/ac
Lot Size 30,000 square feet 79,892 square feet (1.83
acres)
Floor Area Ratio (FAR) 3.00 FAR 1.1 FAR
Building Height
Up to 10 stories for a depth of 150
feet from the street and 6 stories
thereafter
37’-3”
Minimum Floor Heights 9-15 feet 9’-4” ground; 10’-4” second, 9’-1”, third
Density Bonus Agreement No. 2026-0005 – Aspen Woods (2030 E. Fourth Street) October 20, 2026
Development Standards (MEMU)
Standard Required/Allowed Provided
Adjacent to Public ROW or Street:
10 feet (max.)
Adjacent to Fourth Street: 9
feet
Adjacent to Golden Circle
Drive: 9 feet
Adjacent to parking: 7 feet (min.) Adjacent to parking: 10 feet Setbacks
Building to building (up to 3rd floor): 6
feet (min.)
Building to building: 13 feet
(min)
Frontage Type Front Porch, Stoop, Forecourt, Shop
Front, Gallery, or Arcade Front Porch
Publicly Accessible Open
Space
10 percent (10%) of the net site area
(67,973 square feet) 6,797 square
feet required
3,210 square feet (5
percent/5%) – Waiver
requested
Private/Common Open
Space
• 90 square feet per unit (3,600
square feet)
• Total required: 3,600 square feet
• Balconies = 3,388 square
feet
• Amenities and common
open space = 6,705
square feet
• Total private/common
open space = 10,093
square feet
Parking Spaces
MEMU: 80 spaces (2.0 spaces per
residential/live-work unit, inclusive of
guest parking and any nonresidential
uses).
State Density Bonus Law: 76 spaces
required (Gov. Code § 65915(p))
100 spaces (80 enclosed
garage spaces and 20 offstreet open guest spaces; 2.5
spaces per dwelling unit).
The requested reduction in publicly accessible open space is evaluated in the Density Bonus section below. The Project otherwise complies with the applicable objective MEMU development standards identified above.
Density Bonus
The California Density Bonus Law establishes mandatory benefits for qualifying housing developments that provide specified levels of affordable housing. When a housing development satisfies the applicable affordability requirements, the City is required to grant the density bonus and other benefits provided by State law, including applicable parking ratios and, when requested and supported by the statutory requirements, incentives or concessions and waivers or reductions of development standards. Accordingly, the Density Bonus Law does not provide a local jurisdiction with general discretion to deny these benefits Density Bonus Agreement No. 2026-0005 – Aspen Woods (2030 E. Fourth Street) October 20, 2026
based on policy preferences or because a project does not comply with development standards that are subject to an authorized incentive, concession, or waiver.
The City’s authority to deny a requested incentive or concession is expressly limited by Government Code Section 65915(d)(1). The City must grant a qualifying incentive or concession unless it makes a written finding, based upon substantial evidence, that: (1) the incentive or concession does not result in identifiable and actual cost reductions consistent with State Density Bonus Law; (2) the incentive or concession would have a specific adverse impact upon public health and safety or on property listed in the California Register of Historical Resources, and there is no feasible method to satisfactorily mitigate or avoid that impact without rendering the development unaffordable to low- and moderate-income households; or (3) the incentive or concession would be contrary to State or federal law.
The City bears the burden of proof to support denial of a requested incentive or concession.
Similarly, Government Code Section 65915(e) prohibits the City from applying a development standard that would physically preclude construction of a qualifying development at the densities or with the incentives or concessions permitted under State Density Bonus Law. A requested waiver or reduction may be denied only under the limited circumstances specified by State law, including where the waiver would result in a specific adverse impact upon health or safety for which there is no feasible method to satisfactorily mitigate or avoid the impact, would adversely affect property listed in the California Register of Historical Resources, or would be contrary to State or federal law.
State law also limits the information a local jurisdiction may require from an applicant in connection with a density bonus request. Government Code Section 65915(a)(2) provides that a local government shall not condition the submission, review, or approval of a density bonus application on preparation of an additional report or study that is not otherwise required by State law. The City may require reasonable documentation necessary to establish the Project’s eligibility for the requested density bonus and applicable parking ratios. In addition, reasonable documentation may be required to establish eligibility for an incentive or concession or to demonstrate that the requested incentive or concession satisfies the statutory definition. However, the City may not shift its statutory burden to the Applicant by requiring additional studies or analyses merely to establish that the City should approve a benefit that State law otherwise requires it to grant.
Pursuant to the California Density Bonus law, a project’s affordability level is determined by dividing the number of proposed affordable units by the allowable “base” density (i.e., 90 du/ac). Moreover, the State density bonus law states that units added by a density bonus are excluded from the calculations. As outlined by Table 6 below, the base density for the
1.83-acre site at 90 du/ac is 165 units. Of the total units in the development, four (4) units are proposed to be affordable. Therefore, the Project would have a ten-percent (10%) affordability rate. As such, State density bonus law allows the developer to request a maximum density bonus of five percent (5%).
Density Bonus Agreement No. 2026-0005 – Aspen Woods (2030 E. Fourth Street) October 20, 2026
Table 6: Density Bonus Calculation
Affordable Unit – 10% (4 units – Moderate
Income)
Density Bonus Calculation Units Allowed
Base Density – District Center – Medium High
(DC – 3) 1.83 acres x 90 du/ac 165 Units
5-Percent (5%) State Density Bonus (165 units x 0.05) +9 units Total Units
174 units allowed
with density bonus;
40 proposed
*All density bonus calculations resulting in fractions are rounded up to the next whole number. **Affordable unit percentage is calculated excluding units added by a density bonus.
Due to the Project’s ten-percent (10%) affordability rate, the developer can seek one density bonus incentive/concession and unlimited waivers, pursuant to Section 65915 et al. of the California Government Code (Density Bonuses and Other Incentives). In addition, California Assembly Bill No. 2345, approved September 28, 2020, revised the State Density Bonus Law originally adopted in 1979 to provide additional benefits for projects that include qualifying affordable housing.
Under the Density Bonus Law, the developer sought one waiver and zero concessions from the MEMU and SAMC standards to facilitate project development. Table 7 outlines the waiver requested by the Applicant and approved by the Planning Commission on September 14, 2026.
Table 7: Requested Waiver
Standard Required by MEMU Provided
Publicly Accessible
Open Space (MEMU
Section 4.5) (Waiver)
10 percent (10%) of the gross site
area (6,797 square feet)
3,210 square feet provided (5
percent/5%).
As applied to this Project, the requested waiver from the publicly accessible open space standards were reviewed under these statutory standards. The Planning Commission approved the request on September 14, 2026. The City has not identified substantial evidence supporting any of the findings authorized by Government Code Section 65915 to deny the requested concession or waivers. Accordingly, State Density Bonus Law requires the City to recognize the approved deviations from the otherwise applicable MEMU development standards. DBA No. 2026-0005 memorializes those Density Bonus Law benefits together with the Project's corresponding affordable housing obligations.
Affordable Housing Opportunity and Creation Ordinance
The Project meets the affordable housing goal for the for-sale category of the City’s Affordable Housing Opportunity and Creation Ordinance (AHOCO) by providing four (4) onsite units designated for households earning between 80 to 120 percent (80-120%) of the AMI (moderate-income), which is currently set at $166,300 for a four-person Density Bonus Agreement No. 2026-0005 – Aspen Woods (2030 E. Fourth Street) October 20, 2026
household, significantly enhancing the opportunity for income eligible Santa Ana households to own a home in the City at a lower cost. The units will be dispersed throughout the community. These affordable units will consist of one two-bedroom, two three-bedroom, and one four-bedroom units ranging from 1,211 to 1,813 square feet in size and will be indistinguishable from the market-rate units. The developer’s Inclusionary Housing Plan has been reviewed and approved by the City’s Housing Division.
Public Notification and Community Outreach
As the City Council’s approval of this agreement does not constitute a public hearing, no public notification or community outreach is required under applicable state law or local ordinances prior to Council action. However, staff notes that project notifications were posted, published, and mailed in accordance with City and State regulations for the required Planning Commission public hearing. In addition, staff contacted the provided contacts for the Lyon and Zoo District Neighborhood Association to ensure they were aware of the project and Planning Commission public hearing.
In addition to the required public noticing, the Applicant also held two community meetings in compliance with the City’s Sunshine Ordinance (Ordinance No. NS-3040). The first meeting was held on January 28, 2026. Approximately six members of the community were in attendance and posed questions related to the unit count, unit type, parking availability, and existing business leases. No issues of concern were raised regarding the proposed development. The second meeting was held on March 24, 2026. No members of the community were in attendance in-person and two individuals were present online.
They posed questions related to the parking needs of nearby residential buildings, the pricing of the housing units and when they would become available, but raised no issues related to the development. Materials from both meetings are posted to the Project’s City webpage.
ENVIRONMENTAL IMPACT
The proposed Project qualifies for a statutory exemption from the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21080.66, enacted through Assembly Bill No. 130 (AB 130) in 2025. To qualify for this statutory exemption, a project must satisfy the following eligibility criteria:
• The project must be residential or mixed-use, with residential uses comprising at least two-thirds of the total project area.
• The project must be consistent with the applicable General Plan and zoning ordinance.
• The project site must not exceed 20 acres in size, or five (5) acres if the project qualifies under the Builder’s Remedy provisions.
• The project must provide a minimum density of 15 dwelling units per acre. • The project must not involve the demolition of a historic structure. • The project site must be located within an urbanized area.
Density Bonus Agreement No. 2026-0005 – Aspen Woods (2030 E. Fourth Street) October 20, 2026
• The project site must not be located on prime farmland, wetlands, within a high fire hazard severity zone, earthquake fault zone, floodplain, habitat for protected species, or land subject to a conservation easement.
• The project site must not be listed as a hazardous waste site. • The project must complete Phase I and Phase II Environmental Site Assessments, as applicable.
• The project must evaluate its proximity to freeways; if located within 500 feet of a freeway, appropriate Minimum Efficiency Reporting Value (MERV) filtration measures must be incorporated.
• The project must complete tribal consultation in accordance with applicable state requirements.
Unlike the categorical exemptions contained in the CEQA Guidelines, Public Resources Code Section 21080.66 establishes a statutory exemption enacted by the Legislature for qualifying residential and mixed-use housing developments that satisfy the eligibility criteria prescribed by statute.
The proposed Project satisfies all applicable eligibility criteria listed above. As part of the review process, the City contacted the Native American Heritage Commission (NAHC) to obtain a list of tribes that may have an interest in consulting on the Project. The NAHC provided a list of 12 tribes, all of which were contacted by City staff. Of the tribes contacted, the Juaneño Band of Mission Indians and the Gabrieleño Band of Mission Indians - Kizh Nation requested consultation and consulted with City staff. During consultation, the tribe requested tribal monitoring during ground-disturbing activities. In response, conditions of approval requiring tribal monitoring have been incorporated into the resolutions approving the Project.
In addition, the Applicant prepared an AB 130 Eligibility Memorandum to evaluate the Project’s qualification for the statutory exemption and to document the completion of the required Phase I Environmental Site Assessments with assistance from Integrated Property Analysis, Inc., the Applicant’s environmental consultant. The memorandum was reviewed by City staff and determined to adequately demonstrate the Project’s compliance with the requirements of Public Resources Code Section 21080.66. Based on this analysis, the Project satisfies the eligibility requirements of Public Resources Code Section 21080.66 and therefore qualifies for a statutory exemption from CEQA.
Accordingly, a Notice of Exemption, Environmental Review No. 2025-7, will be filed following Project approval
FISCAL IMPACT
There is no fiscal impact associated with this action.
Density Bonus Agreement No. 2026-0005 – Aspen Woods (2030 E. Fourth Street) October 20, 2026
EXHIBITS
1. Resolution – Density Bonus Agreement
2. Draft Density Bonus Agreement
3. Site, Architectural, and Landscape Plans
4. September 14, 2026 – Planning Commission Staff Report and Exhibits (Hyperlink)
Submitted By: Ali Pezeshkpour, AICP, Executive Director of Planning and Building Agency and Sylvia Vazquez, Deputy City Manager/Acting Executive Director of Community Development
Approved By: Alvaro Nuñez, City Manager