"Use" means the purpose for which a site or structure is arranged, designed, intended, constructed, erected, moved, altered or enlarged on for which either a site or structure is or may be occupied or maintained.
"Vehicle wrecking yard" means a site or portion of a site on which the dismantling or wrecking of used vehicles, whether self-propelled or not, or the storage, sale or dumping of dismantled or wrecked vehicles or their parts is conducted. The presence on a site of two or more motor vehicles that have not been capable of operating under their own power for thirty (30) days or more, or in the case of vehicles not self-propelled, that have not been towable or from which parts have been removed for reuse or sale, shall constitute prima facie evidence of a vehicle wrecking yard. “Vocational or other Specialized Schools – Non-industrial Trades” means a school established to provide for the teaching of professional clerical, managerial, artistic, or similar skills or trades. This definition applies to schools that are owned and operated privately for profit, or not-for-profit, and that do not offer a complete educational curriculum. Examples include, but are not limited to, beauty, modeling, culinary, cosmetology, arts and media, music, accounting and finance, health and dental including nursing, legal, psychology, and technology. The definition does not include uses wherein the building contains a space dedicated for training of workforce skills, wherein the space is ancillary to the primary use.
“Vocational or other Specialized Schools – Industrial Trades” means a school established to provide for the teaching of industrial skills. This definition applies to schools that are owned and operated privately for profit, or not-for-profit, and that do not 327
ORDINANCE NO. 2025-01
offer a complete educational curriculum. Examples include, but are not limited to, construction, industrial occupations, truck driving, machinery, vehicle repair and maintenance, and welding. The definition does not include uses wherein the building contains a space dedicated for training of workforce skills, wherein the space is ancillary to the primary use.
"Yard, front" means an area back from and parallel to the front property line on which no building, structure or portion thereof shall be permitted unless specifically permitted by this title.
"Yard, rear" means an area back from and parallel to the rear property line on which no building, structure or portion thereof shall be permitted unless specifically permitted by this title.
"Yard, side" means an area back from and parallel to the side property line on which no building, structure or portion thereof shall be permitted unless specifically permitted by this title.
(Ord. 2022-04 (part), 2022; Ord. 2020-09 (part), 2020; Ord. 2017-01 (part), 2017: Ord. 2015-01 § 1, 2015: Ord. 2012-10, 2012: Ord. 2012-02, 2012: Ord. 2004-20 (part), 2004:
Ord. 2000-01 §§ 2, 3, 2000: prior code § 7220)
Section 3. Chapter 17.24 regarding uses in Business Research Park Zone.
Section 17.24.010 Purpose.
B. The purpose and intent of t he planned business research park zone district is to provide for business, scientific, educational, medical offices, and light industrial uses in a campus -type setting. Planned business research parks are to be planned and developed as integrated units vi a specific or master plans and are intended to accommodate large -scale office developments at locations that provide close -in employment opportunities; promote Visalia's community identity through special site development standards such as lot sizes, setba cks, landscaping, building scale, parking, open areas, etc.; and provide on -site ancillary uses including day care, food service, banks, recreation, etc., served by a variety of transportation modes to reduce vehicle trips.
Section 4. Chapter 17.25 regarding new, modified, or deleted Zone Use Table line items.
In this section, changes are specified by underline for additions and strikeout for deletions.
Section 17.25.030 Commercial, Office, and Industrial Zone Use Table.
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Section 5. Chapter 17.32 regarding new or modified Special Provisions.
Section 17.32.168 Automated Car Washes
A. The queue lane shall not be visible from the public right -of-way. This shall be achieved by designing the site in a manner such that the queue lane is not located parallel with public street frontages, or by incorporating screening along a queue lane to a minimum height of three feet utilizing a combination of berms, hedges, and/or landscape materials, or solid walls if necessary.
B. The queue lane for entering the car wash structure shall not be located within 25 feet of a residential -zoned property or a parcel containing an existing residence or a sensitive receptor.
C. A noise analysis addressing noise impacts in conformance with the City of Visalia’s Noise Ordinance (Chapter 8.36) shall be required and accepted by the City Planner if the car wash is located within 1,000 feet of an existing residence or a sensitive receptor.
Compliance of the noise levels , subject to the Visalia Noise Ordinance, shall be verified by the acoustical consultant or their designee prior to operation.
D. For car washes requiring a noise analysis, h ours of operation beyond 7:00 p.m. shall only be permissible if supported by a noise analysis that confirms the car wash will not be inconsistent with the City of Visalia’s Noise Ordinance (Chapter 8.36).
E. A traffic study which analyzes the impact of the proposed carwash on adjacent and nearby intersections may be required. The limits of this study shall be established by the City Engineer.
F. Adequate means of eliminating grease and oils from drainage systems shall be provided, such as through the installation of a sand-oil separator. 363
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17.32.120 Video machine arcades.
It is the purpose of this section to set forth development and operational standards for arcades. Such standards are adopted to protect the public welfare from potential problems associated with the operation of video machine arcades.
A. Definitions. For the purpose of this section the following definitions shall apply:
"Video arcade" means a commercial establishment that contains five or more "video machines.” and its primary business is generated from sales occurring through use of the “video machines.” Businesses that operate “video machines” as an ancillary use are not considered “video arcades.”
"Video machine" means any machine, device or apparatus, the operation or use of which is permitted, controlled, allowed or made possible by the deposit or placing of any coin, plate, disc, slug, or key into any slot, crevice or other opening or by the payment of any fee or fees, for the use as a game, contest, which is operated through the use of electronic means with images and sounds transmitted through a cathode ray tube.
B. Permits Required.
1. Video arcades may be approved as a conditional permitted use in the C -N, C-R, C-MU and D-MU zones pursuant to Chapter 17.38 of the Visalia zoning regulations.
2. Video machines, up to four in number, may be approved by the planning department pursuant to Section 17.38.070 (temporary uses) of the zoning regulations.
Such permits shall be subject to the operational criteria set forth in subsection (C) of this section.
CB. Operational Criteria.
1. Location. Video machines and arcades shall not be located closer than six hundred (600) feet to any public schools, grades kindergarten through twelfth grade.
2. Hours of Operation. Normal hours of operation sha ll be between the hours of ten10:00 a.m. and eleven11:00 p.m. unless alternate hours are approved by the city council as part of a conditional use permit. Machines located in businesses may be operated during normal business hours if approved by the planni ng department(four or fewer machines) or city council (arcades) . In any case, school aged children shall be prohibited from operating video machines while school is in session.
3. Security/Supervision. The use shall be under the supervision of an adul t during all hours of operation. Additional supervision or security may be required as deemed necessary by the city council under the terms of the conditional use permit . The work station of the adult attendant shall be such that the entry and immediate ou tside area is visible. Supervision responsibility shall extend to the public and/or parking areas in the vicinity of the arcade.
4. Alcoholic Beverages. No alcoholic beverages shall be allowed to be bought or consumed on the premises, including the pu blic and/or private areas in the vicinity. This shall not apply to businesses that are licensed and approved for alcoholic beverage sale and use, such as a bona-fide restaurant.
5. Noise. No noise or sound generated by an arcade shall be audible outsi de of the arcade building.
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6. Loitering. Gathering and loitering of individuals in the arcade and public and/or parking areas in the vicinity of the arcade shall be prohibited.
DC. Monitoring of Use. Periodic inspections, which may or may not be announced in advance, may be conducted by the city to ascertain compliance of any arcade with these operational standards the conditions of the use permit under which the arcade is operating. Violations of the conditional use permit or the provisions of thi s section shall be subject to enforcement under the provisions of Chapter 17.46 of the zoning regulations. Continuing violations may lead to revocation of the conditional use permit for an arcade, as set forth under Section 17.38.040 of the zoning regulati ons. (Ord. 2017-01 (part), 2017: prior code § 7488)
Section 6. CEQA. The project is exempt under the California Environmental Quality Act (CEQA) Guidelines section 15061(b)(3) (common sense exemption); and
Section 7. Severability. If any section, subsect ion, subdivision, paragraph, sentence, clause or phrase of this Ordinance, or its application to any person or circumstances, is for any reason held to be invalid or unenforceable, such invalidity or unenforceability shall not affect the validity or enforc eability of the remaining sections, subsections, subdivision, paragraphs, sentences, clauses or phrases of this Ordinance, or its application to any other person or circumstance. The City Council of the City of Visalia hereby declares that it would have ad opted each section, subsection, subdivision, paragraph, sentence, clause, or phrase hereof, irrespective of the fact that any one or more other sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases hereof be declared invalid or unenforceable.
Section 8. Construction. The City Council intends this Ordinance to supplement, not to duplicate or contradict, applicable state and federal law and this Ordinance shall be construed in light of that intent.
Section 9. Effective Date. This Ordinance shall take effect thirty days after its adoption.
Section 10. Certification. The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published or posted according to law.
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REPORT TO CITY OF VISALIA PLANNING COMMISSION
HEARING DATE: December 9, 2024
PROJECT PLANNER: Brandon Smith, Principal Planner
Phone: 559-713-4636
Email: [email protected]
Devon Jones, Economic Development Manager
Phone: (559) 713-4190
E-mail: [email protected]
SUBJECT: Zoning Text Amendment No. 2024 -02: A request by the City of Visalia to amend Visalia Municipal Code Title 17 (Zoning Ordinance) based on mu ltiple factors including, but not limited to:
• Streamlining of land use review
• Changes in business and/or development trends and activity
STAFF RECOMMENDATION
Staff recommends that the Planning Commission adopt Resolution No. 2024-70, recommending that the City Council approve adoption of Zoning Text Amendment No. 2024 -02, which amends Title 17, Chapters 17.04 Definitions, 17.24 Business Research Park Zone 17.25 Uses in the Commercial, Mixed Use, Office, and Industrial Zones, and 17.32 Special Provisions.
This recommendation is based on the findings contained therein and summarized as follows:
• The Zoning Text Amendment is consistent with the goals, objectives, and policies of the City’s General Plan.
• The Zoning Text Amendment makes various updates based on streamlining of land use review and changes in business and/or development trends and activity.
RECOMMENDED MOTION
I move to recommend that the City Council approve Zoning Text Amendment No. 2024-02 based on the findings and conditions in Resolution No. 2024-70.
REASON FOR ZONING TEXT AMENDMENTS
The text amendments discussed herein are being requested by City staff to update the Zoning Ordinance and to respond to current issues , particularly the streamlining of allowed uses in the Zoning Ordinance’s Zone Use Matrix.
It has been staff’s practice every few years to process City-initiated text amendments for reasons that generally include clean-up and adjustment. Earlier in 2024, the City analyzed and processed the first phase of a City-initiated zone text amendment, the first since the comprehensive Zoning Ordinance Amendment in 2017, when the City Council adopted the Zoning Ordinance Update in follow-up to the General Plan Update. A Zone Text Amendment (ZTA) for this first phase of amendments was formally recommended for City Council approval on May 28, 2024. City Council subsequently approved this first phase ZTA on June 15, 2024, and the ZTA has since taken effect. These amendments consisted of mainly non -substantive or ‘clean-up’ amendments that have been identified over time to ‘correct’ existing language.
The proposed amendments in this ZTA 2024 -02 were also briefly introduced at the Planning Commission work session held on March 11, 2024, described as more complex amendments 366
that staff believed warranted further Planning Commission review and consideration. The changes would better reflect actual development or industry activity, changes in development and business trends, changes in state law, or streamline the zoning text.
On September 9, 2024, staff presented these proposed amendments in a work session presentation to Planning Commission for initial review and discussion. Following the input received from Planning Commission at this work session presentation, staff has brought these detailed edits for consideration.
Below is a detailed list of the proposed amendments for Planning Commission consideration.
Where sections of Municipal Code are given, changes specified with strikeout are being deleted from Municipal Code, and changes specified with underline are being added to Municipal Code.
Additionally, edits proposed in the Zoning Use Table are also highlighted.
DESCRIPTION AND EVALUATION
A. Introduction of new land uses into the Zoning Use Table not associated with any category in the table.
1. Event Centers
There has been one new event center uses established in the City (i.e., Woodlands) in the City, as well as other proposed centers that have not established to date, and currently, a land use definition does not exist. Doing so will create clarity in identifying the use and directing the use to the appropriate zoning.
Suggested definition : means a facility operated by any person, entity, or organization where private parties may hold weddings, receptions, special gatherings, or other social, civic, or entertainment activities. The facility may be indoors, outdoors, or a combination of both. This does not include retail sales, theaters, private clubs and lodges, athletic/playing fields, and hosting of sporting events. Other uses operated within the facility which are otherwise listed within the Zones Use Matrix, including but not limited to churches and specialized schools, may be allowed to utilize the facility without additional entitlements provided that such other uses are not the sole and primary use operated in the facility and are limited to indoor operation only.
Commercial and Mixed Use Zones Office Zones Industrial
USE C-N C-R C-S C-MU D-MU O-PA O-C BRP I-L I
E10 Event Centers C C C C
2. Media Studio
This use type is viewed as consistent with many office type uses and can include one or more of the following uses: recording studio, photography studio, offices focusing on communications and marketing, podcast studio. In 2024, one Site Plan Review applicant proposed this type of use in an existing industrial facility.
Suggested definition: Means a studio space dedicated to the recording, production, and/or editing of audio and/or visual art forms or the broadcast via radio, television, internet or other media of audio and/or visual art forms, or the combination of any of the above.
Commercial and Mixed Use Zones Office Zones Industrial
USE C-N C-R C-S C-MU D-MU O-PA O-C BRP I-L I
C7 Media Studio P P P P
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3. Battery Energy Storage System (BESS)
In 2024, one Site Plan Review applicant proposed this type of use on a vacant lot in the industrial park . Staff determined that the use would be permitted based on its demonstrated likeness to other uses in the vicinity.
Suggested definition: means a permanent facility that charges (i.e., collects energy) from an electrical grid or a power plant and then discharges that energy at a later time through an electrical grid.
Commercial and Mixed Use Zones Office Zones Industrial
USE C-N C-R C-S C-MU D-MU O-PA O-C BRP I-L I
U2 Battery Energy Storage
System
C
4. Residential unit reoccupation
This change would allow, as a permitted use, a residential dwelling unit without any commercial activity to be established in a structure that was originally constructed as a residence. This would largely be applicable to historic homes that have converted to office uses but wish to revert back to a residence. Currently, zoning allows new or expansion of residences in any non-commercial zone as a conditionally allowed use. In 2023, one CUP was processed for such use. This revision would also help in addressing State mandates on requiring local jurisdictions to streamline residential housing developments.
Suggested definition: means a single -family dwelling, situated in a non -residential zone classification and which does not contain any on -site commercial or office business, that occupies an existing structure that was originally fabricated for the intended purpose as a residential dwelling unit. The single -family dwelling may or may not have a business associated with a home occupation permit.
Commercial and Mixed Use Zones Office Zones Industrial
USE C-N C-R C-S C-MU D-MU O-PA O-C BRP I-L I
R34 Residential Unit
Reoccupation P P P P P P P C C C
B. Re-evaluation of land uses already listed in the Zoning Use Table.
1. Automated Car Washes:
Staff recommends that in addition to Zone Use Table changes that would allow certain zones to allow automated car washes as permitted by right, the following development standards be required for automated car washes throughout the city.
Suggested Development standards:
a. The site shall be designed in a manner such that cars in queue to enter the car wash are not located visible to and parallel with public street frontages, or immediately adjacent to existing residential uses.
b. A noise analysis addressing noise impacts in conformance with the City of Visalia’s Noise Ordinance (Chapter 8.36) shall be required and accepted by the City Planner if the car wash is located within 1,000 feet of an existing residence or a sensitive receptor. Compliance of the noise levels, subject to the Visalia Noise Ordinance, shall be verified by the acoustical consultant or their designee prior to operation. 368
c. Hours of operation for a car wash shall be limited to between 7:00 a.m. to 7:00 p.m., and any operation during nighttime hours as identified in the Noise Ordinance, Chapter
8.36, shall be supported by a noise analysis if applicable. d. A traffic study which analyzes the impact of the proposed carwash on adjacent and nearby intersections may be required. The limits of this study shall be established by the City Engineer.
e. Adequate means of eliminating grease and oils from drainage systems shall be provided, such as through the installation of a sand-oil separator.
2. Stand-alone Barbers and Tattoo
The Planning Division processed five CUPs for Stand -alone Barbers in Office zones and four CUPs for Tattooists in the C-MU zone between 2019 and 2023. Staff has determined that no unique conditions have been applied to these uses when a CUP has been processed. The CUP conditions of approval for the processed CUPs generally reflect enforcement of existing Zoning Ordinance standards (i.e. provide parking, landscape plans required, sign permit required) and compliance with site plans and floor plans. Given there is no apparent necessary reason to require a conditional use permit for these uses in these zones, staff recommends permitting these uses in those zones by right.
See section E below for barbers, no definition for tattooist.
USE C-N C-R C-S C-MU D-MU O-PA O-C BRP I-L I
BARBERS, HAIRSTYLISTS, TANNING CENTERS, COSMETICIANS, & DAY SPAS B3 Stand Alone P P P P P C P C P
B5 Tattooist P P P C P P P P
3. Fast food restaurants in Industrial zones, meeting criteria in Section 17.32.161.
Given that VMC Section 17.32.161 details conditions necessary for this use type in industrial zones, a CUP doesn’t seem necessary. The Planning Division processed one CUP between 2019 and 2023.
No definition recommended.
USE C-N C-R C-S C-MU D-MU O-PA O-C BRP I-L I
D10 Drive-Thru Lanes in
Industrial Zone
C P C P
E7
Quick Service/Fast Food
Restaurants (Industrial
Zone)
C P C P
4. Gallery
Permitting galleries in the downtown area is supported by Land Use Policy LU-P-17 which encourages the community to establish additional initiatives to support artist in the local community. No CUPs were processed between 2019 and 2023, and no galleries have sought approval in any zone during this time.
USE C-N C-R C-S C-MU D-MU O-PA O-C BRP I-L I
A176 Car Washing - automated C C P P C P C C
Development standards:
See Section 17.32.168
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Suggested definition: means an establishment engaged in the sale, loan, or display of art, photography, crafts, paintings, sculpture, or other works of art. This clarification does not include libraries or museums.
USE C-N C-R C-S C-MU D-MU O-PA O-C BRP I-L I
G1
GALLERIES– ART/
PHOTOGRAPHY/
CRAFTS
P P P P C P
5. Hotels and Motels
There were 3 CUPs processed between 2019 and 2023. Staff has determined that no unique conditions have been applied to these uses when a CUP has been processed. The CUP conditions of approval for the 3 processed CUPs generally reflect enforcement of existing Zoning Ordinance standards (i.e. provide parking, landscape plans required, sign permit required) and compliance with site plans and elevations. Given there is no apparent necessary reason to require a conditional use permit for these uses in these zones, staff recommends permitting these uses in those zones by right.
No definition recommended but revise Zone Use Matrix based on comments.
USE C-N C-R C-S C-MU D-MU O-PA O-C BRP I-L I
H2
Hotels and Motels,
located 250 feet or
more from an existing
residence
C P C P C P
C
H3
Hotels and Motels,
located less than 250
feet from an existing
residence
C C C C
C
6. Animal Day Care Facility, Kennel, and Animal Hospital Definitions are recommended to provide more clarity and nature of these types of uses , such as commercial vs. hobby use, daytime boarding facilities such as “doggie day cares”, medical vs. non-medical. Additionally, the allowed locations of kennels appear to be limited given that they are only permitted in two zones and have a distance requirement from existing residential zones. Therefore, staff suggests expanding the zone districts for these types of uses to include Industrial zones and the Commercial Mixed-Use zone.
Suggested: Create new line item for Animal day care facility to mean an establishment where dogs, cats, or other small domestic animals are provided such services as day care for all or part of a day, obedience classes, training, grooming, exercising, socializing, or behavioral counseling, provided that overnight boarding is not permitted.
USE C-N C-R C-S C-MU D-MU O-PA O-C BRP I-L I
A6 Animal day care
facility P C P P C
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Suggested definition: Kennel means an establishment where dogs, cats, or other small domestic animals are boarded for an extended amount of time, trained, or bred.
USE C-N C-R C-S C-MU D-MU O-PA O-C BRP I-L I
K1
Kennels (located 500
feet or more from a
residential zone)
C P C C P P
Suggested definition : Animal hospital means an establishment for dogs, cats, or other small domestic animals to receive medical or surgical treatment and are cared for during the time of such treatment. Use as short -time boarding shall be only incidental to such hospital use.
USE C-N C-R C-S C-MU D-MU O-PA O-C BRP I-L I
VETERINARY SERVICES
V1
Animal Hospitals
Care Clinic (no
boarding)
P C P P C P P
V2
Animal
Hospitals/Clinics
(located 500 ft. from a
residential zone
including short term
boarding of animals)
C C C P P
7. Commercial bakeries and kitchens
Staff suggests that a definition and Zoning Use Matrix line item be created to allow for commercial kitchens that do not have a retail storefront. Given changes in the food service industry and efforts to grow food entrepreneurship businesses, such an addition would assist City staff to update the zoning use matrix to current trends. Also, given there is no apparent reason to require a conditional use permit for Commercial Bakeries in Service Commercial zone, staff recommends permitting this use in Service Commercial by right.
Staff would also recommend conditionally permitting this use in the Commercial Mixed- Use zone.
Suggested definition : Commercial bakery means an establishment that is primarily engaged in manufacturing bread, bread -type rolls, and dry bakery products. The establishment will either not directly sell on the premises to consumers, or will conduct limited sales on the premises to consumers as an ancillary use to the bakery.
Suggested: Create new line item for Commercial kitchen to mean a facility equipped to prepare food or meals to be delivered off -site to a residential and/or commercial establishment, wherein the space is not open to patrons on-site.
USE C-N C-R C-S C-MU D-MU O-PA O-C BRP I-L I
M167 – commercial
bakeries
C P C
P P
M17 – commercial
kitchens C C P C C P P
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8. Clothing imprinting
Staff considers this type of use to have little to no impact on adjacent uses. Such uses have previously operated or currently operate in the D-MU or C-MU zones.
Suggested definition : Clothing imprinting means a commercial operation involving a process that is considered printing, imprinting, reproducing, or duplicating images and using printing methods upon clothing or garments, including but not limited to the use of stitching, sewing, lithography, and screen process printing.
USE C-N C-R C-S C-MU D-MU O-PA O-C BRP I-L I
M4138 – clothing
assembly/imprinting P P P P P
9. Museum
No CUPs were processed between 2019 and 2023, and no museums have sought approval in any zone during this time. Additionally, given consistencies with other similar type uses in the conditionally permitted zones staff recommends making this use permitted by right in those zones.
Suggested definition: means an establishment serving as a repository for a collection of natural, scientific, or literary curiosities or objects of interest, or works of art, and arranged, intended, and designed to be used by members of the public for viewing, with or without an admission charge, and which may include as an accessory use the sale of goods to the public as gifts or for their own use, and the holding of meetings and social events.
USE C-N C-R C-S C-MU D-MU O-PA O-C BRP I-L I
M665
MUSEUMS
(SPECIAL
INTEREST/
HISTORICAL–
PUBLIC/ PRIVATE)
C P
C P C P
10. Photocopy services
Given the nature of the type of service and that the use is already permitted in commercial and light industrial settings, staff suggests that photocopy services also be allowed by- right in the Service Commercial zone.
No definition recommended.
USE C-N C-R C-S C-MU D-MU O-PA O-C BRP I-L I
P74 With Printing Press P P C C C P P
P85 Without Printing Press P P P P P P P P P
11. Fire stations
Given that fire stations are already permitted in commercial, office, and industrial settings, staff suggests that this use also be allowed ‘by -right’ in the Service Commercial, Commercial Mixed Use, and Downtown Mixed Use zones.
No definition recommended.
USE C-N C-R C-S C-MU D-MU O-PA O-C BRP I-L I
P185 Fire Stations C P C P C P C P P C P P
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12. Post Offices
No post offices have sought approval in any zone during this time. Currently the city has three post offices: one in each of the C-MU, D-MU, and O-PA zones.
No definition recommended.
USE C-N C-R C-S C-MU D-MU O-PA O-C BRP I-L I
PUBLIC COMMUNITY
SERVICES
P2017 Post Offices P C P
13. Retail – Convenience stores
Staff believes that convenience stores can be considered synonymous to general retail or food stores that sell merchandise to the general public. The creation of a definition can create parameters on regulated projects such as alcohol and tobacco to ensure that a convenience store maintains a wide variety of products. Currently, the Zoning Ordinance provides no definition or description of convenience store, not describing its difference from general retail, grocery, specialty food, etc., and whether the description incl udes those that are part of a service station. Additionally, the line item does not describe how convenience store greater than 7,000 square foot in size shall be treated. Planning Division processed four CUPs for Convenience Stores between 2019 and 2023: One in each of the C-N, C-S, C-MU, and D-MU zones.
Suggested definition: Means a small retail establishment, generally but not limited to under 7,000 square feet, which can be located within or associated with another use, that offers for sale convenience goods such as prepackaged food and drink items, periodicals, and other household goods. Such establishments may include the sales of alcohol and/or tobacco products; however, the sale of each such line of products shall clearly be accessory to the overall range of goods offered within the establishment. Convenience stores which operate in a manner that meets the definition of “tobacco shop”, as defined in Section 8.46.030, shall be considered as the latter. Convenience stores having the sale of alcohol which comprises the majority of gross sales shall be subject to the definition of “liquor store”, as defined in Section 17.04.030.
USE C-N C-R C-S C-MU D-MU O-PA O-C BRP I-L I
RETAIL
Food Stores
R560 – convenience store –
7000 sq. ft. or less C P C P C C P C P C C C
14. Tutoring Centers
Staff does not see a reason for tutoring centers to be considered as a conditionally allowed use, as they generally tend to operate similar to processional offices or counseling offices.
Therefore, staff recommends to allow the uses by -right in all locations where they are currently allowed. Planning Division processed one CUP for Tutoring in the C -N zone (between 2019 and 2023).
Suggested definition: Means an establishment providing instruction to students typically on an individual basis, for personal or professional enrichment, involving scholastic, non- physical pursuits, including but not limited to academics, language instruction, music instruction, and computer training. Establishments providing instruction as a part of a 373
certificate or degree granting program are not to be considered a Tutoring Center and subject to the most appropriate use found in the “Schools, Public and Private” section of Table 17.25.030.
USE C-N C-R C-S C-MU D-MU O-PA O-C BRP I-L I
SCHOOLS, PUBLIC AND PRIVATE (see also Quasi-Public and Residential Zones)
S98 Tutoring Centers C P C C P C P C P
15. Check-Cashing Service and Bail Bonds
Staff recognizes that these types of businesses would not likely require any unique conditions in order to ensure land use compatibility between other existing uses. These uses generally locate within an established commercial center or within a professional center and would have little to no impact on adjacent uses. Therefore, staff recommends allowing the uses by -right in all locations where they are currently conditionally allowed.
One CUP is currently being processed for bail bonds in the C-MU zone.
No definition recommended.
USE C-N C-R C-S C-MU D-MU O-PA O-C BRP I-L I
SERVICE, COMMERCIAL
S121 Check-Cashing
Service C P C P C P C P
S176 Bail Bonds C P C P C P
C. Expansion of existing land uses already listed in the Zoning Use Table.
1. Automotive / Car Sales
Differentiate car sales between businesses with vehicle display lots and businesses essentially without vehicle display lots. This is due to a new business model of car sales for new brands that primarily sell cars online, or direct to consumer.
Suggested definition : Automotive sales means the use of any building or premises, or portion thereof, as a retail establishment for the display and sale of new and/or used motor vehicles. The use may also conduct warranty repair work and other repair service and the sales of parts and accessories a s an accessory use to the sale of motor vehicles. This definition does not include an establishment that does not display any on-site vehicles, as such use shall be classified as a professional office.
USE C-N C-R C-S C-MU D-MU O-PA O-C BRP I-L I
A1822
Car Sales – New &
Used, More than four
(4) vehicles on
display
P C
A19
Car Sales – New &
Used, four (4) or less
vehicles on display
P P P P
2. Medical – clinic & offices
Currently the Zoning Use Matrix relies on listing types of facilities to define a Clinic rather than providing a broad breadth definition. A definition would assist in setting apart clinics from other types of facilities , such as Medical Offices. A definition would clarify 374
appointment vs. walk -in, inpatient vs. outpatient services, drug dispensing, etc.
Additionally, staff is unclear as to why Clinic uses in Regional Commercial, Commercial Mixed Use or Office Professional zones, and Medical Offices in Regional Commercial and Neighborhood Commercial zones should require a conditional use permit, particularl y if better definitions and differentiation between the two use types are established.
Business Research Park zone: Given development in the BRP has been slow to take off, with most of the new projects being either food services/retail or hotel, with little on the horizon for additional office space or research park, it may be appropriate to consider other types of professional office uses. Such uses could include medical office type uses given they are typically in office park settings, subject to common design standards, and are primarily by appointment only.
Suggested update: Update 17.24.010.B as follows: The purpose and intent of the planned business research park zone district is to provide for business, scientific, educational, medical offices, and light industrial uses in a campus -type setting.
Planned business research parks are to be planned and developed as integrated units via specific or master plans and are intended to accommodate large -scale office developments at locations that provide close-in employment opportunities; promote Visalia's community identity through special site development standards such as lot sizes, setbacks, landscaping, building scale, parking, open areas, etc.; and provide on- site ancillary uses including day care, f ood service, banks, recreation, etc., served by a variety of transportation modes to reduce vehicle trips.
Suggested definition: Clinic means a medical facility that operates as an urgent care or walk-in clinic, or is a multi-disciplinary medical group practice, that is limited to outpatient services or surgeries only and does not provide overnight stays. Treatment at the facility is provided by two or more physicians, dentists, or other professionals that provide health care, chiropractic, psychiatric, or psychology services. This classification does not include hospitals.
Suggested definition. Medical office means a medical facility that operates as an appointment-based medical group practice, that is limited to outpatient services or surgeries only and does not provide overnight stays. Treatment may be provided by one or more of the following: physician, dentist, optometrist, physical the rapist, chiropractor, psychiatrist, psychologist, or similar health care professional.
Please note these proposed changes do not include Hospitals or Acute Care uses which are Conditionally permitted in only the D-MU and O-PA zones.
USE C-N C-R C-S C-MU D-MU O-PA O-C BRP I-L I
MEDICAL FACILITIES/SERVICES (for medical/dental offices see OFFICES) M6056
Clinics (medical group,
urgent care/walk-ins,
dental, rehabilitation ,
Outpatient Surgery
Center)
C C P C P C C P C C
OFFICES
O6
Medical (i.e., Physical
therapists, physicians/
surgeons, dentists/
orthodontists,
optometrists,
chiropractors, etc.)
C P C P P P P P P
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3. Offices – Professional / Counseling
‘Counseling/psychologist – individual and group’ - Staff has observed new land uses that provide services to clients in a manner similar to, but larger in scope than traditional counseling offices. In these cases, counseling may include providing wrap around social services, recovery sessions for substance abuse, and other programs not involving drug dispensing or psychologist counseling. It may be appropriate to edit the existing ‘Counseling/psychologist – groups’ (O8) line item to reflect this new land use and add a new definition to Chapter 17.04. Conversely, counseling offices as envisioned in the existing Zoning Use Matrix language do not appear to present a different land use or business activity than what may be typical in other Medical Office use types as currently described in the Use Matrix. Because of this, it may be appropriate to simply add the term “counseling” to the line item for Medical Offices (O6) and delete line item O7, if a new or revised line item was provided for O8.
Suggested definition: Professional office means a place of employment occupied by a person or persons generally employed in a professional, administrative, or clerical position. This definition includes offices for accountants, advertising agencies, insurance agents, commercial art and design services, non -retail financial institutions, real estate agents, architects, engineers, employment agencies, real-estate agents, counselors, and other similar professions. This does not include offices for persons employed in a medical field. Counseling or therapy services shall not include medical examinations, dispensing of drugs or medication, or other treatments normally conducted in a hospital or clinic.
Suggested: Replace group counseling with a new item Professional office with social services to mean a professional office that generally provides group counseling or therapy services in a non -medical setting which includes the providing of social services or wraparound services, life skills training, recovery sessions for substance abuse, food distribution (not for on -site consumption), clothing distribution, and other programs not involving drug dispensing or psychologist counseling. This does not include offices for persons employed in a medical field, nor does it include any type of emergency shelter.
USE C-N C-R C-S C-MU D-MU O-PA O-C BRP I-L I
OFFICES
O6
Medical (i.e., Physical
therapists,
physicians/surgeons,
dentists/
orthodontists,
optometrists,
chiropractors,
counseling, etc.)
C P C P
P P P P
P
O7
Counseling/
psychologist–
individuals
C C
P P P P
O78
Counseling/
psychologist – groups
Professional office
with social services
C C
P C P C
4. Schools – Training
Staff has seen various types of uses that have an ancillary use of a training space that may not fall within the scope of a school or training facility. An example is a facility that provides workforce skills training looking to be employed by local employers, or already 376
employed by local employers, but does not provide a degree or certificate. Planning Division processed three CUPs for Specialized Schools (one in the C -S and two in the I zone). Staff recommends replacing one line item for Vocational School with two-line items as follows:
Suggested definition: Vocational or Other Specialized School -- Non-Industrial Trades, means a school established to provide for the teaching of professional clerical, managerial, artistic, or similar skills or trades. This definition applies to schools that are owned and operated privately for profit , or not-for-profit, and that do not offer a complete educational curriculum. Examples include, but are not limited to, beauty, modeling, culinary, cosmetology, arts and media, music, accounting and finance, health and dental including nursing, legal, psychology, and technology. The definition does not include uses wherein the building contains a space dedicated for training of workforce skills, wherein the space is ancillary to the primary use.
Suggested definition: Vocational or Other Specialized School -- Industrial Trades, means a school established to provide for the teaching of industrial skills. This definition applies to schools that are owned and operated privately for profit , or not -for-profit, and that do not offer a complete educational curriculum. Examples include, but are not limited to, construction, industrial occupations, truck driving, machinery, vehicle repair and maintenance, and welding. The definition does not include uses wherein the building contains a space dedicated for training of workforce skills, wherein the space is ancillary to the primary use.
USE C-N C-R C-S C-MU D-MU O-PA O-C BRP I-L I
SCHOOLS, PUBLIC AND PRIVATE (see also Quasi-Public and Residential Zones) S6
Vocational, Charter or
other Specialized
Schools – Non-industrial
trades
C C C C C P P C P
S7
Vocational or other
Specialized Schools -
Industrial Trades
C P C C C P P P
5. Other recreational uses
Given changes in the retail sector due to consumer shifts towards online purchases, entertainment uses are becoming more important for foot traffic generation and reuse of retail facilities. At the same time, there may be a need to add additional recreational facility line items given an overall dependence on the ‘Other Recreational Uses’ line item (R18).
Suggested: Indoor Amusement Facilities means an establishment that provides entertainment activities or services in an indoor setting for a fee or admission charge. This definition includes uses that are listed separately in the zone use matrix (i.e. athletic and health clubs (racquet clubs), bowling alleys, ice & roller skating rinks pool halls, arcades, escape rooms, indoor playgrounds and trampoline parks). Uses which are not listed separately in the zone use matrix shall be classified as other Indoor Amusement Facilities.
Suggested: Escape Room means a type of indoor amusement facility consisting of one or more rooms wherein a group of persons within a room must solve a series of tasks and puzzles in order to exit from the room.
Video Arcades (17.32.120)
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Additionally, staff has edited Section 17.32.120 regarding Video Arcades given many businesses operate 5 or more video arcade machines and due to an apparent outdated view of the potential public nuisance video arcades present.
Proposed updates to 17.32.120 -- Staff recommends the proposed revisions to this section as follows:
It is the purpose of this section to set forth development and operational standards for arcades. Such standards are adopted to protect the public welfare from potential problems associated with the operation of video machine arcades.
A. Definitions. For the purpose of this section the following definitions shall apply:
"Video arcade" means a commercial establishment that contains five or more "video machines.” and its primary business is generated from sales occurring through use of the “video machines.” Businesses that operate “video machines” as an ancillary use are not considered “video arcades.”
"Video machine" means any machine, device or apparatus, the operation or use of which is permitted, controlled, allowed or made possible by the deposit or placing of any coin, plate, disc, slug, or key into any slot, crevice or other opening or by the payment of any fee or fees, for the use as a game, contest, which is operated through the use of electronic means with images and sounds transmitted through a cathode ray tube.
B. Permits Required.
1. Video arcades may be approved as a conditional permitted use in the C-N, C-R, C-MU and D-MU zones pursuant to Chapter 17.38 of the Visalia zoning regulations.
2. Video machines, up to four in number, may be approved by the planning department pursuant to Section 17.38.070 (temporary uses) of the zoning regulations.
Such permits shall be subject to the operational criteria set forth in subsection (C) of this section.
CB. Operational Criteria.
1. Location. Video machines and arcades shall not be located closer than six hundred (600) feet to any public schools , grades kindergarten through twelfth grade.
2. Hours of Operation. Normal hours of operation shall be between the hours of 10:00 a.m. and 11:00 p.m. unless alternate hours are approved by the city council as part of a conditional use permit. Machines located in businesses may be operated during normal business hours if approved by the planning department(four or fewer machines) or city council (arcades). In any case, school aged children shall be prohibited from operating video machines while school is in session.
3. Security/Supervision. The use shall be under the supervision of an adult during all hours of operation. Additional supervision or security may be required as deemed necessary by the city council under the terms of the conditional use permit. The work station of the adult attendant shall be such that the entry and immediate outside area is visible. Supervision responsibility shall extend to the public and/or parking areas in the vicinity of the arcade.
4. Alcoholic Beverages. No alcoholic beverages shall be allowed to be bought or consumed on the premises, including the public and/or private areas in the 378
vicinity. This shall not apply to businesses that are licensed and approved for alcoholic beverage sale and use, such as a bona-fide restaurant.
5. Noise. No noise or sound generated by an arcade shall be audible outside of the arcade building.
6. Loitering. Gathering and loitering of individuals in the arcade and public and/or parking areas in the vicinity of the arcade shall be prohibited.
DC. Monitoring of Use. Periodic inspections, which may or may not be announced in advance, may be conducted by the city to ascertain compliance of any arcade with these operational standards the conditions of the use permit under which the arcade is operating. Violations of the conditional use permit or the provisions of this section shall be subject to enforcement under the provisions of Chapter 17.46 of the zoning regulations. Continuing violations may lead to revocation of the conditional use permit for an arcade, as set forth under Section 17.38.040 of the zoning regulations. (Ord. 2017-01 (part), 2017: prior code § 7488)
USE C-N C-R C-S C-MU D-MU O-PA O-C BRP I-L I
RECREATION FACILITIES
R3
Athletic and Health
Clubs (gymnasiums,
fitness centers,
racquet clubs)
C P C P C P C C C
R7 Bowling Alleys C P C P C
R143 Ice & Roller Skating
Rinks
C P C P
R174 Pool Halls/Billiard
Parlors C P C P C P C
R196
Video Arcade
Machines/Coin-
Operated games – 5
or more machines
C P C P C P C P
R10 Escape Rooms P P P P C
R15 Indoor playgrounds
and trampoline parks P P P C
R16 Indoor Amusement
Facilities P C C
R2018 Other Recreational
Facilities C C C C C C C
D. Removal of existing land uses already listed in the Zoning Use Table.
1. Sit-Down Restaurant/Café
The ‘sit-down restaurant w/full bar using greater than 25% of public area’ category has not been used in staff’s recollection. It should be noted that restaurants which serve alcohol must obtain a separate alcohol license which is issued by the California Department of Alcohol Beverage and Control which contains a set of operating conditions that is enforced by the state, including conditions that ensure revenue sales are primarily from food sales.
Staff therefore recommends removing references in lines E9 and E10 pertaining to “ full bar using less/greater than 25% of public area ” and allow for sit -down restaurants regardless of alcohol sales.
379
USE C-N C-R C-S C-MU D-MU O-PA O-C BRP I-L I
E9 Sit-Down Restaurant/Café
– with or without full bar
using less than 25% of
public area
P P P P P P P P P
E10 Sit-Down
Restaurant/Café– full bar
using greater than 25% of
public area
C C C C C C C C
2. Residential Alcohol/Substance Abuse Treatment Facility.
This land use is now synonymous with the definition with either a ‘Residential Care Facility’ or ‘Supportive Housing’. These uses provide social care and different levels of personal care in an effort to assist with improving their health and maximizing their ability to live and work.
Staff recommends to remove this line item from the use matrix as ‘Supportive Housing’ already falls under a separate line item and requires a CUP in all zones.
USE C-N C-R C-S C-MU D-MU O-PA O-C BRP I-L I
M62 Residential
Alcohol/Substance
Abuse Treatment
Facility
C
3. Secondhand Store/Thrift Shops
Staff believes that second hand/thrift stores can be considered synonymous to general retail that sell merchandise to the general public. Because they could be viewed no different than a general retail store, staff recommends eliminating the line items thereby allowing the use to be treated as general retail. The general retail line currently requires a CUP for any use in excess of 40,000 sq. ft.
No secondhand or thrift stores have sought approval in any zone in the last five years.
USE C-N C-R C-S C-MU D-MU O-PA O-C BRP I-L I
R78 Secondhand
Store/Thrift Shops–
up to 2,000 square
feet
P P P P
R79 Secondhand
Store/Thrift Shops –
greater than 2,000
square feet
P P P C
E. Create new definitions or amend existing definitions found in Chapter 17.04 and add new uses to Zoning Use Matrix line items found in Chapter 17.25.
1. Barbers, Hairstylists, Day Spas, Etc.
Recent proposals reviewed by staff reveal a wider breadth of uses that could include other nonmedical services such as eyebrow threading, and skin art. Certain uses that may be quasi-medical in fact, may not be medical in the same manner as procedures deemed necessary for improving health. Examples include Botox, laser hair removal, microneedling, medical spas, and similar aesthetic treatments. Must differentiate other 380
types of personal elective procedures are included for the purpose of self-care and not for medical treatment.
Suggested: Change to Personal Services: Means establishments that provide personal nonmedical elective procedures for the purpose of self -care. Procedures includes but is not limited to barber and beauty shops, day spas, tanning centers, and cosmeticians.
These uses may include certain elective procedures for the improvement of health but not deemed necessary for improving health, such as botulinum toxin injections, laser hair removal, microneedling, medical spas, and similar aesthetic treatments. These uses may also include accessory retail sales of products related to the services provided. This definition does not include massage establishments or an establishment which includes massage services.
2. Manufacture / Assembly, Light & Heavy
There is some ambiguity between several existing line items regarding heavy or light manufacturing uses and some clarity would be beneficial to help industries locate in the appropriate zones.
Business Research Park zone – Given development in the BRP has been slow to take off, with most of the new projects being either food services/retail or hotel, with little on the horizon for additional office space or research park, it may be appropriate to consider additional offic e use types. ‘Prototype manufacturing’ or ‘Makerspaces’ could be appropriate uses for the Business Research Park given such uses are in Research and Development and the zone’s proximity to industrial zones where production would more aptly occur.
Suggested: Change to Heavy Manufacturing, means manufacturing of materials in a raw form. Any industrial use that generates considerable noise, odor, vibration, illumination, or particulate that may be offensive or obnoxious to adjacent land uses, or requires a significant amount of on -site hazardous chemical storage shall be classified under this land use. This use shall include any packaging of the product being manufactured on-site.
Examples include but are not limited to the production of the following : agricultural equipment, aircraft equipment parts & supplies, large appliances, auto/truck manufacturing, industrial machinery.
Suggested: Change to Light Manufacturing, means assembling or mixing, where previously processed components or manufactured parts produced off -site are fitted together into a complete machine or blended together to form a non-combustible and non- explosive product. The assembli ng or packaging shall not produce noise, vibration, hazardous waste materials, or particulate that create significant negative impacts to adjacent land uses. Odors produced on -site shall not negatively affect other businesses or proper ties in the area. Examples of assembling include but are not limited to the production of the following: computer hardware & parts, electric supplies, consumer goods, toys, mechanical components, industrial machinery, small vehicle assembly.
Suggested: Add Hobby/Craft Manufacturing, means establishments manufacturing and/or assembling small products primarily by hand, including but not limited to jewelry, pottery and other ceramics, as well as small glass and metal art and craft products.
Suggested: Add Prototype/Makerspace Manufacturing, means a non -production scale manufacturing in an incubator workspace environment that can include such activities as machining, plasma cutting, sandblasting, ventilated painting, forging, casting, ceramics, and similar other industrial processes. Such workspaces may utilize tools and equipment including but not limited to three -dimensional (3D) printers, later cutters, computer 381
numerical control (CNC) machines, soldering irons, blacksmith equipment, and woodworking machinery.
USE C-N C-R C-S C-MU D-MU O-PA O-C BRP I-L I
M332
Heavy Equipment/
Machine Manufacturinge/
Assembly (welding &
fabrication, i.e.,
agricultural equipment,
aircraft equipment parts &
supplies, large
appliances, auto/truck
manufacturing, industrial
machinery)
C
M354
Light Manufacturing/
Assembly (i.e., computer
hardware & parts, electric
supplies– coils, wire,
cable, consumer goods,
etc.)
C P P
M36 Hobby/Craft
Manufacturing P P P
M37
Prototype Manufacturing,
Non-production scale,
Makerspace
C P P
BACKGROUND INFORMATION
Environmental Review:
The requested action would be considered exempt under Section 15061(b)(3), Per Section 15061(b)(3) of the State Guidelines for the California Environmental Quality Act (CEQA). A Notice of Exemption has been prepared for the project because Section 15061 (b) (3) states that the project is exempted from CEQA if the activity is covered by the commonsense exemption that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it ca n be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.
RECOMMENDED FINDINGS
1. That the Zoning Text Amendment is needed to achieve the objectives of the Zoning Ordinance (Visalia Municipal Code Title 17) prescribed in Code Section 17.02.020.
2. That the proposed Zone Text Amendment is consistent with the intent of the General Plan, and Zoning Ordinance, and is not detrimental to the public health, safety, or welfare, or materially injurious to properties or improvements in the vicinity.
3. The Zoning Text Amendment makes various updates based on c hanges in state law , changes in city procedures, changes in business and/or development trends or activity, and various corrections based on errors in existing zoning text, or changes in other sections of the Visalia Municipal Code.
4. That the project is exempt from further review under the California Environmental Quality Act (CEQA) Guidelines section 15061(b)(3) (common sense exemption). 382
APPEAL INFORMATION
The Planning Commission’s recommendation on Zoning Ordinance Text Amendment No. 2024- 02 is advisory only and is automatically referred to the City Council for final action.
Attachments:
• Related Plans and Policies
• Resolution No. 2024-70 for 2024 Zoning Ordinance Text Update • Exhibit A – Planning Commission Work Session Staff Report (September 9, 2024)
383
RELATED PLANS AND POLICIES
Chapter 17.44
ZONING AMENDMENTS
Sections:
17.44.010 Purpose.
17.44.020 Initiation.
17.44.030 Application procedures.
17.44.040 Public hearing—Notice.
17.44.050 Investigation and report.
17.44.060 Hearing.
17.44.070 Action of city planning commission.
17.44.090 Action of city council.
17.44.100 Change of zoning map.
17.44.110 New application.
17.44.120 Report by city planner.
17.44.010 Purpose.
As a general plan for Visalia is put into effect, there will be a need for changes in zoning boundaries and other regulations of this title. As the general plan is reviewed and revised periodically, other changes in the regulations of this title may be warranted. Such amendments shall be made in accordance with the procedure prescribed in this chapter.
17.44.020 Initiation.
A. A change in the boundaries of any zone may be initiated by the owner of the property within the area for which a change of zone is proposed or by his authorized agent. If the area for which a change of zone is proposed is in more than one ownership, all of the property owners or their authorized agents shall join in filing the application, unless included by planning commission resolution of intention.
B. A change in boundaries of any zone, or a change in a zone regulation, off-street parking or loading facilities requirements, general provision, exception or other provision may be initiated by the city planning commission or the city council in the form of a request to the commission that it consider a proposed change; provided, that in either case the procedure prescribed in Sections 17.44.040 and
17.44.090 shall be followed.
17.44.030 Application procedures.
A. A property owner or his authorized agent may file an application with the city planning commission for a change in zoning boundaries on a form prescribed by the commission and that said application shall include the following data:
1. Name and address of the applicant;
384
2. Statement that the applicant is the owner of the property for which the change in zoning boundaries is proposed, the authorized agent of the owner, or is or will be the plaintiff in an action in eminent domain to acquire the property involved;
3. Address and legal description of the property;
4. The application shall be accompanied by such sketches or drawings as may be necessary to clearly show the applicant's proposal;
5. Additional information as required by the historic preservation advisory board.
B. The application shall be accompanied by a fee set by resolution of the city council sufficient to cover the cost of processing the application.
17.44.040 Public hearing—Notice.
The city planning commission shall hold at least one public hearing on each application for a change in zone boundaries and on each proposal for a change in zone boundaries or of a zone regulation, off-street parking or loading facilities requirements, general provisions, exception or other provision of this title initiated by the commission or the city council. Notice of the public hearing shall be given not less than ten days or more than thirty (30) days prior to the date of the hearing by publication in a newspaper of general circulation within the city, and by mailing notice of the time and place of the hearing to property owners within three hundred (300) feet of the boundaries of the area occupied or to be occupied by the use that is the subject of the hearing.
17.44.050 Investigation and report.
The city planning staff shall make an investigation of the application or the proposal and shall prepare a report thereon that shall be submitted to the city planning commission.
17.44.060 Hearing.
A. At the public hearing, the city planning commission shall review the application or the proposal and may receive pertinent evidence as to why or how the proposed change is necessary to achieve the objectives of the zoning ordinance prescribed in Section 17.02.020.
B. If the commission's recommendation is to change property from one zone designation to another, the commission may recommend that conditions be imposed so as not to create problems adverse to the public health, safety and general welfare of the city and its residents.
17.44.070 Action of city planning commission.
The city planning commission shall make a specific finding as to whether the change is required to achieve the objectives of the zoning ordinance prescribed in Section 17.02.020. The commission shall transmit a report to the city council recommending that the application be granted, conditionally approved, or denied or that the proposal be adopted or rejected, together with one copy of the application, resolution of the commission or request of the Council, the sketches or drawings submitted and all other data filed therewith, the report of the city engineer and the findings of the commission.
17.44.080 [Reserved].
17.44.090 Action of city council.
A. Upon receipt of the resolution or report of the city planning commission, the city council shall review the application or the proposal and shall consider the resolution or report of the commission and the report of the city planning staff.
385
B. The city council shall make a specific finding as to whether the change is required to achieve the objectives of the zoning ordinance prescribed in Section 17.02.020. If the council finds that the change is required, it shall enact an ordinance amending the zoning map or an ordinance amending the regulations of this title, whichever is appropriate. The city council may impose conditions on the change of zone for the property where it finds that said conditions must be imposed so as not to create problems inimical to the public health, safety and general welfare of the city and its residents. If conditions are imposed on a change of zone, said conditions shall run with the land and shall not automatically be removed by a subsequent reclassification or change in ownership of the property. Said conditions may be removed only by the city council after recommendation by the planning commission. If the council finds that the change is not required, it shall deny the application or reject the proposal.
17.44.100 Change of zoning map.
A change in zone boundary shall be indicated on the zoning map.
17.44.110 New application.
Following the denial of an application for a change in a zone boundary, no application for the same or substantially the same change shall be filed within one year of the date of denial of the application.
17.44.120 Report by city planner.
On any amendment to the zoning code changing property from one zone classification to another, the city planner shall inform the planning commission and the city council of any conditions attached to previous zone changes as a result of action taken pursuant to Sections 17.44.060, 17.44.070 and 386
RESOLUTION NO. 2024-70
RESOLUTION NO. 2024-70
A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF VISALIA, RECOMMENDING APPROVAL OF ZONING TEXT AMENDMENT NO. 2024-02,
A REQUEST BY THE CITY OF VISALIA TO AMEND VISALIA MUNICIPAL CODE TITLE 17 (ZONING ORDINANCE) BASED ON MULTIPLE FACTORS INCLUDING, BUT NOT LIMITED TO: STREAMLINING OF LAND USE REVIEW, CHANGES IN BUSINESS AND/OR DEVELOPMENT TRENDS AND ACTIVITY.
WHEREAS, Zoning Text Amendment No. 2024-02 is requested by the City of Visalia to amend Visalia Municipal Code Title 17 (Zoning Ordinance ) based on multiple factors including, but not limited to: streamlining of land use review, changes in business and/or development trends and activity. The specific amendments apply City-wide and are specified in Attachment “A” of this Resolution; and
WHEREAS, the Planning Commission of the City of Visalia , after duly published notice, held a public hearing before said Commission on December 9, 2024; and
WHEREAS, the Planning Commission of the City of Visalia considered the Zone Text Amendment in accordance with Section 17.44.070 of the Zoning Ordinance of the City of Visalia and on the evidence contained in the staff report and testimony presented at the public hearing; and
WHEREAS, the project is exempt under the California Environmental Quality Act (CEQA) Guidelines section 15061(b)(3) (common sense exemption).
NOW, THEREFORE, BE IT RESOLVED that the Planning Commission recommends that the City Council concur that the project is exempt from further review under the California Environmental Quality Act (CEQA) Guidelines section 15061(b)(3) (common sense exemption).
BE IT FURTHER RESOLVED that the Planning Commission of the City of Visalia recommends approval to the City Council of the proposed Zone Text Amendment based on the following specific findings and evidence presented:
1. That the Zoning Text Amendment is needed to achieve the objectives of the Zoning Ordinance (Visalia Municipal Code Title 17) prescribed in Code Section
17.02.020.
2. That the proposed Zone Text Amendment is consistent with the intent of the General Plan, and Zoning Ordinance, and is not detrimental to the public health, safety, or welfare, or materially injurious to properties or improvements in the vicinity.
3. The Zoning Text Amendment makes various updates based on changes in business and/or development trends, development activity, and streamlining of land use review.
4. That the project is exempt from further review under the California Environmental Quality Act (CEQA) Guidelines section 15061(b)(3) (common sense exemption). 387
RESOLUTION NO. 2024-70
BE IT FURTHER RESOLVED that the Planning Commission of the City of Visalia recommends approval to the City Council of the Zone Text Amendment described herein in Attachment “A”, in accordance with the terms of this resolution and under the provisions of Section 17.44.070 of the Ordinance Code of the City of Visalia.
388
RESOLUTION NO. 2024-70
Resolution No. 2024-70
ATTACHMENT “A”
Zoning Text Amendment No. 202 4-02, implementing numerous amendments to Title 17 (Zoning Ordinance) based on factors including, but not limited to, streamlining of land use review, changes in business and/or development trends and activity.
Changes to City of Visalia Municipal Code, as specified by underline and italics for additions and strikeout for deletions.
CHAPTER 17.04 regarding new or modified definitions:
Section 17.04.030 Definitions.
“Event Centers” means a facility operated by any person, entity, or organization where private parties may hold weddings, receptions, special gatherings, or other social, civic, or entertainment activities. The facility may be indoors, outdoors, or a combination of both. This does not include retail sales, theaters, private clubs and lodges, athletic/playing fields, and hosting of sporting events. Other uses operated within the facility which are otherwise listed within the Zones Use Matrix, including but not limited to churches and specialized schools, may be allowed to utilize the facility without additional entitlements provided that such other uses are not the sole and primary use operated in the facility and are limited to indoor operation only.
“Media Studio” means a studio space dedicated to the recording, production, and/or editing of audio and/or visual art forms or the broadcast via radio, television, internet or other media of audio and/or visual art forms, or the combination of any of the above.
“Battery Energy Storage System” means a permanent facility that charges (i.e., collects energy) from an electrical grid or a power plant and then discharges that energy at a later time through an electrical grid.
“Residential Unit Reoccupation” means a single-family dwelling, situated in a non- residential zone classification and which does not contain any on-site commercial or office business, that occupies an existing structure that was originally fabricated for the intended purpose as a residential dwelling unit. The single-family dwelling may or may not have a business associated with a home occupation permit.
“Galleries” mean an establishment engaged in the sale, loan, or display of art, photography, crafts, paintings, sculpture, or other works of art. This clarification does not include libraries or museums.
“Animal Day Care Facility” means an establishment where dogs, cats, or other small domestic animals are provided such services as day care for all or part of a day, obedience classes, training, grooming, exercising, socializing, or behavioral counseling, provided that overnight boarding is not permitted.
“Kennel” means an establishment where dogs, cats, or other small domestic animals are boarded, trained, or bred.
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“Animal Hospital” means an establishment for dogs, cats, or other small domestic animals to receive medical or surgical treatment and are cared for during the time of such treatment. Use as short-time boarding shall be only incidental to such hospital use.
“Commercial Bakery” means an establishment that is primarily engaged in manufacturing bread, bread-type rolls, and dry bakery products. The establishment will either not directly sell on the premises to consumers, or will conduct limited sales on the premises to consumers as an ancillary use to the bakery.
“Commercial Kitchen” means a facility equipped to prepare food or meals to be delivered off-site to a residential and/or commercial establishment, wherein the space is not open to patrons on-site.
“Clothing Imprinting” means a commercial operation involving a process that is considered printing, imprinting, reproducing, or duplicating images and using printing methods upon clothing or garments, including but not limited to the use of stitching, sewing, lithography, and screen process printing.
“Museum” means an establishment serving as a repository for a collection of natural, scientific, or literary curiosities or objects of interest, or works of art, and arranged, intended, and designed to be used by members of the public for viewing, with or without an admission charge, and which may include as an accessory use the sale of goods to the public as gifts or for their own use, and the holding of meetings and social events.
“Convenience Stores” Means a small retail establishment, generally but not limited to under 7,000 square feet, which can be located within or associated with another use, that offers for sale convenience goods such as prepackaged food and drink items, periodicals, and other household goods. Such establishments may include the sales of alcohol and/or tobacco products; however, the sale of each such line of products shall clearly be accessory to the overall range of goods offered within the establishment.
Convenience stores which operate in a manner that meets the definition of “tobacco shop”, as defined in Section 8.46.030, shall be considered as the latter. Convenience stores having the sale of alcohol which comprises the majority of gross sales shall be subject to the definition of “liquor store”, as defined in Section 17.04.030.
“Tutoring Center” Means an establishment providing instruction to students typically on an individual basis, for personal or professional enrichment, involving scholastic, non- physical pursuits, including but not limited to academics, language instruction, music instruction, and computer training. Establishments providing instruction as a part of a certificate or degree granting program are not to be considered a Tutoring Center and subject to the most appropriate use found in the “Schools, Public and Private” section of Table 17.25.030.
“Car Sales” means the use of any building or premises, or portion thereof, as a retail establishment for the display and sale of new and/or used motor vehicles. The use may also conduct warranty repair work and other repair service and the sales of parts and accessories as an accessory use to the sale of motor vehicles. This definition does not include an establishment that does not display any on-site vehicles, as such use shall be classified as a professional office.
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“Clinic” means a medical facility that operates as an urgent care or walk-in clinic, or is a multi-disciplinary medical group practice, that is limited to outpatient services or surgeries only and does not provide overnight stays. Treatment at the facility is provided by two or more physicians, dentists, or other professionals that provide health care, chiropractic, psychiatric, or psychology services. This classification does not include hospitals.
"Medical Officebuildings" means a medical facility that operates as an appointment- based medical group practice, that is limited to outpatient services or surgeries only and does not provide overnight stays. Treatment may be provided by one or more of the following: physician, dentist, optometrist, physical therapist, chiropractor, psychiatrist, psychologist, or similar health care professionalclinics or offices for doctors, dentists, oculists, chiropractors, osteopaths, chiropodists, or similar practitioners of the healing arts; including accessory laboratories and a prescription pharmacy, but not including offices for veterinarians.
“Professional Office” means a place of employment occupied by a person or persons generally employed in a professional, administrative, or clerical position. This definition includes offices for accountants, advertising agencies, insurance agents, commercial art and design services, non-retail financial institutions, real estate agents, architects, engineers, employment agencies, real-estate agents, counselors, and other similar professions. This does not include offices for persons employed in a medical field.
Counseling or therapy services shall not include medical examinations, dispensing of drugs or medication, or other treatments normally conducted in a hospital or clinic.
“Professional Office with Social Services” means a professional office that generally provides group counseling or therapy services in a non-medical setting which includes the providing of social services or wraparound services, life skills training, recovery sessions for substance abuse, food distribution (not for on-site consumption), clothing distribution, and other programs not involving drug dispensing or psychologist counseling. This does not include offices for persons employed in a medical field, nor does it include any type of emergency shelter.
“Vocational or other Specialized Schools – Non-industrial Trades” means a school established to provide for the teaching of professional clerical, managerial, artistic, or similar skills or trades. This definition applies to schools that are owned and operated privately for profit, or not-for-profit, and that do not offer a complete educational curriculum. Examples include, but are not limited to, beauty, modeling, culinary, cosmetology, arts and media, music, accounting and finance, health and dental including nursing, legal, psychology, and technology. The definition does not include uses wherein the building contains a space dedicated for training of workforce skills, wherein the space is ancillary to the primary use.
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“Vocational or other Specialized Schools – Industrial Trades” means a school established to provide for the teaching of industrial skills. This definition applies to schools that are owned and operated privately for profit, or not-for-profit, and that do not offer a complete educational curriculum. Examples include, but are not limited to, construction, industrial occupations, truck driving, machinery, vehicle repair and maintenance, and welding. The definition does not include uses wherein the building contains a space dedicated for training of workforce skills, wherein the space is ancillary to the primary use.
“Indoor Amusement Facilities” means an establishment that provides entertainment activities or services in an indoor setting for a fee or admission charge. This definition includes uses that are listed separately in the zone use matrix (i.e. athletic and health clubs (racquet clubs), bowling alleys, ice & roller skating rinks pool halls, arcades, escape rooms, indoor playgrounds and trampoline parks). Uses which are not listed separately in the zone use matrix shall be classified as other Indoor Amusement Facilities.
“Escape Room” means a type of indoor amusement facility consisting of one or more rooms wherein a group of persons within a room must solve a series of tasks and puzzles in order to exit from the room.
“Personal Services” Means establishments that provide personal nonmedical elective procedures for the purpose of self-care. Procedures includes but is not limited to barber and beauty shops, day spas, tanning centers, and cosmeticians. These uses may include certain elective procedures for the improvement of health but not deemed necessary for improving health, such as botulinum toxin injections, laser hair removal, microneedling, medical spas, and similar aesthetic treatments. These uses may also include accessory retail sales of products related to the services provided. This definition does not include massage establishments or an establishment which includes massage services.
“Heavy Manufacturing” means manufacturing of materials in a raw form. Any industrial use that generates considerable noise, odor, vibration, illumination, or particulate that may be offensive or obnoxious to adjacent land uses or requires a significant amount of on-site hazardous chemical storage shall be classified under this land use. This use shall include any packaging of the product being manufactured on-site. Examples include but are not limited to the production of the following: agricultural equipment, aircraft equipment parts & supplies, large appliances, auto/truck manufacturing, industrial machinery.
“Light Manufacturing” means assembling or mixing, where previously processed components or manufactured parts produced off-site are fitted together into a complete machine or blended together to form a non-combustible and non-explosive product. The assembling or packaging shall not produce noise, vibration, hazardous waste materials, or particulate that create significant negative impacts to adjacent land uses. Odors produced on-site shall not negatively affect other businesses or properties in the area.
Examples of assembling include but are not limited to the production of the following:
computer hardware & parts, electric supplies, consumer goods, toys, mechanical components, industrial machinery, small vehicle assembly.
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“Hobby/Craft Manufacturing” means establishments manufacturing and/or assembling small products primarily by hand, including but not limited to jewelry, pottery and other ceramics, as well as small glass and metal art and craft products.
“Prototype Manufacturing or Makerspace” means a non-production scale manufacturing in an incubator workspace environment that can include such activities as machining, plasma cutting, sandblasting, ventilated painting, forging, casting, ceramics, and similar other industrial processes. Such workspaces may utilize tools and equipment including but not limited to three-dimensional (3D) printers, later cutters, computer numerical control (CNC) machines, soldering irons, blacksmith equipment, and woodworking machinery.
Chapter 17.24 regarding uses in Business Research Park Zone
Section 17.24.010 Purpose.
B. The purpose and intent of the planned business research park zone district is to provide for business, scientific, educational, medical offices, and light industrial uses in a campus -type setting. Planned business research parks are to be planned and developed as integrated units via specific or master plans and are intended to accommodate large -scale office developments at locations that provide close -in employment opportunities; promote Visalia's community identity through special site development standards such as lot sizes, setbacks, landscaping, building scale, parking, open areas, etc.; and provide on -site ancillary uses including day care, food service, banks, recreation, etc., served by a variety of transportation modes to reduce vehicle trips.
CHAPTER 17.25 regarding new, modified, or deleted Zone Use Table line items:
In this section, changes are specified by underline for additions and strikeout for deletions.
Section 17.25.030 Commercial, Office, and Industrial Zone Use Table.
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CHAPTER 17.32 regarding new or modified Special Provisions:
Section 17.32.168 Automated Car Washes
A. The site shall be designed in a manner such that cars in queue to enter the car wash are not located visible to and parallel with public street frontages, or immediately adjacent to existing residential uses.
B. A noise analysis addressing noise impacts in conformance with the City of Visalia’s Noise Ordinance (Chapter 8.36) shall be required and accepted by the City Planner if the car wash is located within 1,000 feet of an existing residence or a sensitive receptor.
Compliance of the noise levels , subject to the Visalia Noise Ordinance, shall be verified by the acoustical consultant or their designee prior to operation.
C. Hours of operation for a car wash shall be limited to between 7:00 a.m. to 7:00 p.m., and any operation during nighttime hours as identified in the Noise Ordinance, Chapter
8.36, shall be supported by a noise analysis if applicable.
D. A traffic study which analyzes the impact of the proposed carwash on adjacent and nearby intersections may be required. The limits of this study shall be established by the City Engineer.
E. Adequate means of eliminating grease and oils from drainage systems shall be provided, such as through the installation of a sand-oil separator. 428
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17.32.120 Video machine arcades.
It is the purpose of this section to set forth development and operational standards for arcades. Such standards are adopted to protect the public welfare from potential problems associated with the operation of video machine arcades.
A. Definitions. For the purpose of this section the following definitions shall apply:
"Video arcade" means a commercial establishment that contains five or more "video machines.” and its primary business is generated from sales occurring through use of the “video machines.” Businesses that operate “video machines” as an ancillary use are not considered “video arcades.”
"Video machine" means any machine, device or apparatus, the operation or use of which is permitted, controlled, allowed or made possible by the deposit or placing of any coin, plate, disc, slug, or key into any slot, crevice or other opening or by the payment of any fee or fees, for the use as a game, contest, which is operated through the use of electronic means with images and sounds transmitted through a cathode ray tube.
B. Permits Required.
1. Video arcades may be approved as a conditional permitted use in the C -N, C-R, C-MU and D-MU zones pursuant to Chapter 17.38 of the Visalia zoning regulations.
2. Video machines, up to four in number, may be approved by the planning department pursuant to Section 17.38.070 (temporary uses) of the zoning regulations.
Such permits shall be subject to the operational criteria set forth in subsection (C) of this section.
CB. Operational Criteria.
1. Location. Video machines and arcades shall not be located closer than six hundred (600) feet to any public schools, grades kindergarten through twelfth grade.
2. Hours of Operation. Normal hours of operation shall be between the hours of ten10:00 a.m. and eleven11:00 p.m. unless alternate hours are approved by the city council as part of a conditional use permit. Machines located in businesses may be operated during normal business hours if approved by the planning department (four or fewer machines) or city council (arcades) . In any case, school aged children shall be prohibited from operating video machines while school is in session.
3. Security/Supervision. The use shall be under the supervision of an adult during all hours of operation. Additional supervision or security may be required as deemed necessary by the city council under the terms of the conditional use permit . The work station of the adult attendant shall be such that the entry and immediate outside area is visible. Supervision responsibility shall extend to the public and/or parking areas in the vicinity of the arcade.
4. Alcoholic Beverages. No alcoholic beverages shall be allowed to be bought or consumed on the premises, including the public and/or private areas in the vicinity. This shall not apply to businesses that are licensed and approved for alcoholic beverage sale and use, such as a bona-fide restaurant.
5. Noise. No noise or sound generated by an arcade shall be audible outside of the arcade building.
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6. Loitering. Gathering and loitering of individuals in the arcade and public and/or parking areas in the vicinity of the arcade shall be prohibited.
DC. Monitoring of Use. Periodic inspections, which may or may not be announced in advance, may be conducted by the city to ascertain compliance of any arcade with these operational standards the conditions of the use permit under which the arcade is operating. Violations of the conditional use permit or the provisions of this section shall be subject to enforcement under the provisions of Chapter 17.46 of the zoning regulations. Continuing violations may lead to revocation of the conditional use permit for an arcade, as set forth under Section 17.38.040 of the zoning regulations. (Ord. 2017-01 (part), 2017: prior code § 7488)
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REPORT TO CITY OF VISALIA PLANNING COMMISSION
HEARING DATE: September 9, 2024
PROJECT PLANNER: Brandon Smith, Principal Planner
Phone: 559-713-4636
Email: [email protected]
Devon Jones, Economic Development Manager
Phone: (559) 713-4190
E-mail: [email protected]
SUBJECT: Work Session Discussion - Initiation of Potential Zoning Text Amendments , Section 2: Provide staff direction toward initiating various text amendments within Visalia Municipal Code Title 17 (Zoning Ordinance) based on multiple factors including, but not limited to:
• Streamlining of land use review
• Changes in business and/or development trends and activity
STAFF RECOMMENDATION
Staff recommends that the Planning Commission receive this staff report , presentation, and provide input on initiating ‘Section 2’ of zoning text amendments.
RECOMMENDED MOTION
I move to authorize staff to initiate zoning text amendments as discussed in ‘Section 2’.
Alternative: I move to direct staff to return at a future Planning Commission meeting with additional information as requested by the Planning Commission.
BACKGROUND INFORMATION
The text amendments discussed herein are being requested by City staff to update the Zoning Ordinance and to respond to current issues , particularly the streamlining of allowed uses in the Zoning Ordinance’s Zone Use Matrix.
It has been staff’s practice every few years to process City-initiated text amendments for reasons that generally include clean-up and adjustment. Earlier in 2024, the City analyzed and processed the first phase of a City-initiated zone text amendment, the first since the comprehensive Zoning Ordinance Amendment in 2017 when the City Council adopted the Zoning Ordinance Update in follow-up to the General Plan Update.
Summary of Section 1 Zoning Ordinance Updates
A Zone Text Amendment (ZTA) for the Section 1 Amendments was discussed at a Planning Commission work session on March 11, 2024, and formally recommended for approval by the City Council on May 28, 2024 . ThCouncilCouncil subsequently approved the Section 1 ZTA on June 15, 2024, and the ZTA has since taken effect. Section 1 consisted of mainly non-substantive or ‘clean-up’ amendments that have been identified over time to ‘correct’ existing language.
Section 2 was also introduced at the Planning Commission work session held on March 28, 2024, described as mo re complex amendments that staff believes warrants further Planning Commission review and consideration. The changes would better reflect actual development or industry activity, changes in development and business trends, changes in state law, or streamline the zoning text.
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Below is a list of the Section 2 amendments for Planning Commission consideration. As part of this work session dialogue, staff will consider any other potential amendment suggestions and feedback from the Planning Commission.
DESCRIPTION AND EVALUATION
Section 2
The following are several potential considerations based on actual development activity, changes in state law, changes in business terminology, opportunities for efficiency, or creation of operating standards in lieu of entitlement requirements.
Item 1: Establishment of Definitions in Chapter 17.04 and Revisions to Uses in Table 17.25.030 (Zoning Use Table)
A. Introduction of new land uses into the Zoning Use Table not associated with any category in the table. Staff recommends that for each land use identified in Section A, a definition be added to Chapter 17.04 and a line item be added to the Zoning Use Matrix found in Chapter 17.25. Doing so will create clarity in identifying the use and directing the use to the appropriate zoning.
Staff recommended changes are shown in yellow highlight. i. ‘Event centers, banquet halls, and/or event venues’
Suggested Zoning Districts : Conditionally allowed in Regional Commercial, Commercial Mixed Use, Downtown Mixed Use, Office-Professional/Administrative.
Commercial and Mixed Use Zones Office Zones Industrial
USE C-N C-R C-S C-MU D-MU O-PA O-C BRP I-L I
Event Centers C C C C
ii. ‘Social Media Studio’. This can include one or more of the following uses: recording studio, photography studio, offices focusing on communications and marketing.
In 2024, one Site Plan Review applicant proposed this type of use in an existing industrial facility.
Suggested Zoning Districts : Permitted in Commercial Mixed Use, Downtown Mixed Use, Office-Professional/Administrative, Office Conversion.
Commercial and Mixed Use Zones Office Zones Industrial
USE C-N C-R C-S C-MU D-MU O-PA O-C BRP I-L I
Social Media Studio P P P P
iii. ‘Battery Storage Facility’.
In 2024, one Site Plan Review applicant proposed this type of use on a vacant lot.
Staff determined that the use would be permitted used on its demonstrated likeness to other uses.
Suggested Zoning Districts: Conditionally permitted in Industrial.
Commercial and Mixed Use Zones Office Zones Industrial
USE C-N C-R C-S C-MU D-MU O-PA O-C BRP I-L I
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Battery Storage Facility C
iv. ‘Reversion to Residential Use’.
This change would allow , as a permitted use , a residential dwelling unit without any commercial activity to be established in a structure that was originally constructed as a residence. This would largely be applicable to historic homes that have converted to office uses but wish to revert back to a residence. Currently, zoning allows new or expansion of residences in any non -commercial zone as a conditionally allowed use.
In 2023, one CUP was processed for such use. This revision would also help in addressing State mandates on requiring local jurisdictions to streamline reside ntial housing developments.
Suggested Zoning Districts: Permitted in all zones.
Commercial and Mixed Use Zones Office Zones Industrial
USE C-N C-R C-S C-MU D-MU O-PA O-C BRP I-L I
Dwelling unit
establishing within a
structure which was
originally constructed as
a residence
P P P P P P P P P P
B. Re-evaluation of land uses already listed in the Zoning Use Table . Staff recommends that for each use in Section B, certain zones become more permissive for that use, meaning that a zone which conditionally allows a use will allow the use by right, or that zone which does not allow a use will allow a use with a conditional use permit. Most recommendations are based upon conditional use permits processed for a use that have contained no substantiative conditions of approval beyond compliance with Site Plan Review comments and conformance to a site plan and operation statement.
Staff suggested changes are shown in yellow highlight.
i. ‘Automated car washes’
Staff’s primary concern regarding car washes and the resulting conditions have been related to noise in order to address potential impacts when located near residences.
Conditions have therefore routinely been added to address noise concerns.
Staff believes that with the creation of performance standards to address car washes in all zones, certain zones which frequently see the establishment of car washes can become more permissive and allow the uses by right.
The Planning Division processed three CUPs for car washes in C-MU zones and one CUP in the C-N zone between 2019 and 2023. Generally, no unique conditions have been applied to these uses.
USE C-N C-R C-S C-MU D-MU O-PA O-C BRP I-L I
A16 Car Washing - automated C C P P C P C C
Special Use Standards:
See Section 17.32.xxx
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ii. ‘Stand-alone Barbers’ and ‘Tattooist’
The Planning Division processed five CUPs for Stand-alone Barbers in Office zones and four CUPs for Tattooists in the C-MU zone between 2019 and 2023.
Staff has determined that no unique conditions have been applied to these uses when a CUP has been processed. The CUP conditions of approval for the processed CUPs generally reflect enforcement of existing Zoning Ordinance standards (i.e. provide parking, landscape plans required, sign permit required) and compliance with site plans and floor plans. Given there is no apparent necessary reason to require a conditional use permit for these uses in these zones, staff recommends permitting these uses in those zones by right.
Note: Staff further recommends renaming this category and adding definition to this use – see Section E.
USE C-N C-R C-S C-MU D-MU O-PA O-C BRP I-L I
BARBERS, HAIRSTYLISTS, TANNING CENTERS, COSMETICIANS, & DAY SPAS B3 Stand Alone P P P P P C P C P
B5 Tattooist P P P C P P P P
iii. ‘Fast food restaurants in Industrial zones’, meeting criteria in Section 17.32.161.
Given that VMC Section 17.32.161 details conditions necessary for this use type in industrial zones, a CUP doesn’t seem necessary.
The Planning Division processed one CUP between 2019 and 2023.
USE C-N C-R C-S C-MU D-MU O-PA O-C BRP I-L I
D10 Drive-Thru Lanes in
Industrial Zone
C P C P
E7
Quick Service/Fast Food
Restaurants (Industrial
Zone)
C P C P
iv. ‘Galleries’
No CUPs were processed between 2019 and 2023, and no galleries have sought approval in any zone during this time. In addition, permitting galleries in the downtown area is supported by Land Use Policy LU -P-17 which encourages the community to establish additional initiatives to support artist in the local community.
USE C-N C-R C-S C-MU D-MU O-PA O-C BRP I-L I
G1
GALLERIES– ART/
PHOTOGRAPHY/
CRAFTS
P P P P C P
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v. ‘Hotel and Motels’
There were 3 CUPs processed between 2019 and 2023.
Staff has determined that no unique conditions have been applied to these uses when a CUP has been processed. The CUP conditions of approval for the 3 processed CUPs generally reflect enforcement of existing Zoning Ordinance standards (i.e. provide parking, landscape plans required, sign permit required) and compliance with site plans and elevations. Given there is no apparent necessary reason to require a conditional use permit for these uses in these zones, staff recommends permitting these uses in those zones by right.
USE C-N C-R C-S C-MU D-MU O-PA O-C BRP I-L I
H2 HOTELS AND MOTELS C P C P C P C
vi. ‘Kennels’ and Veterinary Services: ‘Animal Care Clinic’ and ‘Hospitals/Clinic’ Definitions are recommended to provide more clarity and nature of these types of uses:
commercial vs. hobby use, daytime boarding facilities such as “doggie day cares”, medical vs. non -medical. Staff would research and share draft language with the Planning Commission as part of the zone text amendment, or when staff returns with additional information if directed by the Commission.
The allowed locations of kennels appear to be limited given that they are only permitted in two zones and have a distance requirement from existing residential zones.
Therefore, staff suggests expanding the zone districts for these types of uses to include Industrial zones and, for kennels, the Commercial Mixed Use zone.
USE C-N C-R C-S C-MU D-MU O-PA O-C BRP I-L I
K1
KENNELS (LOCATED
500 FEET OR MORE
FROM A RESIDENTIAL
ZONE)
C P C C P P
VETERINARY SERVICES
V1 Animal Care Clinic (no
boarding) P C P P C P P
V2
Hospitals/Clinics
(located 500 ft. from a
residential zone
including short term
boarding of animals)
C C C P P
vii. ‘Commercial Bakery’.
Staff suggests that a definition be created that expand to allow for commercial kitchens that do not have a retail storefront . Also, given there is no apparent reason to require a conditional use permit in Service Commercial zone, staff recommends permitting this use in Service Commercial by right. Staff would also recommend conditionally permitting this use in Commercial Mixed-Use zone.
USE C-N C-R C-S C-MU D-MU O-PA O-C BRP I-L I
M16 Commercial Bakeries C P C P P
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viii. ‘Clothing imprinting’
Staff considers this type of use to have little to no impact on adjacent uses. Such uses have previously operated or currently operate in the D-MU or C-MU zones.
USE C-N C-R C-S C-MU D-MU O-PA O-C BRP I-L I
M38 – clothing
assembly/imprinting P P P P P
ix. ‘Museums’
No CUPs were processed between 2019 and 2023, and no museums have sought approval in any zone during this time.
USE C-N C-R C-S C-MU D-MU O-PA O-C BRP I-L I
M65
MUSEUMS
(SPECIAL
INTEREST/
HISTORICAL–
PUBLIC/ PRIVATE)
C P
C P C P
x. ‘Photocopy services’
Given the nature of the type of service and that the use is already permitted in commercial and light industrial settings, staff suggests that photocopy services also be allowed by-right in the Service Commercial zone.
USE C-N C-R C-S C-MU D-MU O-PA O-C BRP I-L I
P4 With Printing Press P P C C C P P
P5 Without Printing Press P P P P P P P P P
xi. ‘Fire stations’
Given that fire stations are already permitted in commercial, office, and industrial settings, staff suggests that this use also be allowed ‘by-right’ in the Service Commercial, Commercial Mixed Use, and Downtown Mixed Use zones.
USE C-N C-R C-S C-MU D-MU O-PA O-C BRP I-L I
P15 Fire Stations C P C P C P C P P C P P
xii. ‘Post Offices’
No post offices have sought approval in any zone during this time. Currently the city has three post offices: one in each of the C-MU, D-MU, and O-PA zones.
USE C-N C-R C-S C-MU D-MU O-PA O-C BRP I-L I
PUBLIC COMMUNITY SERVICES
P17 Post Offices P C P
xiii. ‘Convenience Store – 7,000 sq. ft. or less’
Staff believes that convenience stores can be considered synonymous to general retail or food stores that sell merchandise to the general public. The creation of a definition can create parameters on regulated projects such as alcohol and tobacco to ensure that a convenience store maintains a wide variety of products. 436
Currently the Zoning Ordinance provides no definition or description of convenience store, not describing its difference from general retail, grocery, specialty food, etc., and whether the description includes those that are part of a service station. Addi tionally, the line item does not describe how convenience store greater than 7,000 square foot in size shall be treated.
Planning Division processed four CUPs for Convenience Stores between 2019 and 2023: One in each of the C-N, C-S, C-MU, and D-MU zones.
USE C-N C-R C-S C-MU D-MU O-PA O-C BRP I-L I
RETAIL
Food Stores
R60 – convenience store –
7000 sq. ft. or less C P C P C C P C P C C C
xiv. ‘Tutoring Centers’
Staff does not see a reason for tutoring centers to be considered as a conditionally allowed use, as they generally tend to operate similar to processional offices or counseling offices. Therefore, staff recommends to allow the uses by -right in all locations where they are currently allowed.
Planning Division processed one CUP for Tutoring in the C-N zone (between 2019 and 2023).
USE C-N C-R C-S C-MU D-MU O-PA O-C BRP I-L I
SCHOOLS, PUBLIC AND PRIVATE (see also Quasi-Public and Residential Zones)
S8 Tutoring Centers C P C C P C P C P
xv. ‘Check-Cashing Service’ and ‘Bail Bonds’
Staff recognizes that these types of businesses would not likely require any unique conditions in order to ensure land use compatibility between other existing uses.
These uses generally locate within an established commercial center or within a professional center and would have little to no impact on adjacent uses. Therefore, staff recommends to allow the uses by -right in all locations where they are currently conditionally allowed.
One CUP is currently being processed for bail bonds in the C-MU zone.
USE C-N C-R C-S C-MU D-MU O-PA O-C BRP I-L I
SERVICE, COMMERCIAL
S11 Check-Cashing
Service C P C P C P C P
S16 Bail Bonds C P C P C P
C. Expansion of existing land uses already listed in the Zoning Use Table . The following items pertain to land use categories that apply to multiple types of land uses under an overarching category. Staff recommends that for each category in Section C, definitions for uses be established or amended as to better encompass the nature of the activities which are the basis for the land use. In some cases, one or more new land use items may be established for a new or emerging type of land use within the category (e.g. cre ating a new line item for 437
‘escape room’ rather than relying on ‘other recreational facilities’). In many instances, a definition or new use description may provide a more in-depth explanation than relying solely upon listing of examples/types of uses included within the same line item or depending on old industry terminology.
Staff suggested changes are shown in yellow highlight.
i. Car Sales:
Differentiate car sales between businesses with vehicle display lots and businesses essentially without vehicle display lots . This is due to a new business model of car sales for new brands that primarily sell cars online, or direct to consumer.
Staff’s recommendation: Split ‘Car Sales – New & Used’ into 2 line items, ‘Car Sales – New & Used, More than 2 vehicles on display’ and ‘Car Sales – New & Used, 2 or less vehicles on display’
USE C-N C-R C-S C-MU D-MU O-PA O-C BRP I-L I
A17 Car Sales – New &
Used, More than 2
vehicles on display
P C
Car Sales – New &
Used, 2 or less
vehicles on display
P P P P P
ii. Clinics, Medical Offices:
‘Clinics (medical group, urgent care/walk-ins, dental, rehabilitation, outpatient surgery center)’ and Medical Offices - Currently the Zoning Use Matrix relies on listing types of facilities to define a Clinic rather than providing a broad breadth definition. A definition would assist in setting apart clinics from other types of facilities , such as Medical Offices. A definition would clarify appointment vs. walk -in, inpatient vs. outpatient services, drug dispensing, etc.
Planning Division processed eight CUPs for Clinics (one in C -R zone, three in CMU zone, three in O -PA zone, and one in the I zone) and eight CUPs for Medical Office (seven in the C -R zone and one in the C -N zone) between 2019 and 2023. There is some ambiguity between these two types of medical facilities and staff is seeking a change to better differentiate the two.
Additionally, staff is unclear as to why Clinic uses in Regional Commercial, Commercial Mixed Use or Office Professional zones, and Medical Offices in Regional Commercial and Neighborhood Commercial zones should require a conditional use permit, particularly if better definitions and differentiation between the two use types are established.
Business Research Park zone – Given development in the BRP has been slow to take off, with most of the new projects being either food services/retail or hotel, with little on the horizon for additional office space or research park, it may be appropriate to consider additional office use types . Such uses could include Clinics and Medical Offices.
Staff’s recommendation: Consider a new ‘Clinic’ definition such as, “a medical facility that operates as an urgent care or walk-in clinic or is a multi-disciplinary medical group practice, that is limited to outpatient surgeries only and does not provide overnight stays”. Doing so should differentiate from similar medical office use types that generate 438
less daily trips/parking/traffic demands and better qualify what would be considered a clinic versus a medical office. A new line-item description would also be recommended.
Additionally, revise Clinic to be allowed ‘by -right’ in the Regional Commercial, Commercial Mixed Use, Office Professional, and Business Research Park zones and that the Medical Office use be allowed ‘by-right’ in the Neighborhood Commercial, Regional Commercial, and Business Research Park zones.
USE C-N C-R C-S C-MU D-MU O-PA O-C BRP I-L I
MEDICAL FACILITIES/SERVICES (for medical/dental offices see OFFICES) M56
Clinics (medical group,
urgent care/walk-ins,
dental, rehabilitation ,
Outpatient Surgery
Center)
C C P C P C C P
P
C C
OFFICES
O6
Medical (i.e., Physical
therapists, physicians/
surgeons, dentists/
orthodontists,
optometrists,
chiropractors, etc.)
C P C P P P P P P
iii. Medical Offices, and Counseling/ Psychologists:
‘Counseling/psychologist – individual and group’ - Staff has observed new land uses that provide services to clients in a manner similar to, but larger in scope than traditional counseling offices. In these cases, counseling may include providing wrap around social services, recovery sessions for subst ance abuse, and other programs not involving drug dispensing or psychologist counseling. It may be appropriate to edit the existing ‘Counseling/psychologist – groups’ (O8) line item to reflect this new land use and add a new definition to Chapter 17.04.
Conversely, counseling offices as envisioned in the existing Zoning Use Matrix language do not appear to present a different land use or business activity than what may be typical in other Medical Office use types as currently described in the Use Matrix. Because of this, it may be appropriate to simply add the term “ counseling” to the line item for Medical Offices (O6) and delete line item O7, if a new or revised line item was provided for O8.
Staff’s recommendation: Add the term, “counseling” to O6, delete line item O7, and rename line item O8 to, “Group Counseling w/wraparound services”.
USE C-N C-R C-S C-MU D-MU O-PA O-C BRP I-L I
OFFICES
O6
Medical (i.e., Physical
therapists,
physicians/ surgeons,
dentists/
orthodontists,
optometrists,
chiropractors,
counseling, etc.)
C P C P
P P P P P
439
O7
Counseling/
psychologist–
individuals
C C
P P P P
O8
Counseling/
psychologist –
groupsGroup
Counseling
w/wraparound
services
C C
P C P C
iv. Business, Trade, Vocational, Charter or other Specialized Schools’.
Staff has seen various types of uses that have an ancillary use of a training space that may not fall within the scope of a school or training facility. An example is a facility that provides workforce skills training looking to be employed by local employers, or already employed by local employers, but does not provide a degree or certificate. Planning Division processed three CUPs for Specialized Schools (one in the C-S and two in the I zone).
Staff’s recommendation: Split this line item into two categories:
‘Vocational, Charter or other Specialized Schools – Business or Office related Trades’ - Conditionally permitted in C-R, C-S, C-MU, D-MU, but permitted by right in O-PA, O- C, and BRP zones.
‘Vocational, Charter or other Specialized Schools – Construction, Maintenance, or Industrial related Trades ’ - Conditionally permitted in C -R, C-MU, D-MU, O-PA, but permitted by right in C-S, I-L, I, and BRP zones.
USE C-N C-R C-S C-MU D-MU O-PA O-C BRP I-L I
SCHOOLS, PUBLIC AND PRIVATE (see also Quasi-Public and Residential Zones) S6
Vocational, Charter or
other Specialized
Schools – Business or
Office related trades
C C C C C P P C P
Vocational, Charter or
other Specialized
Schools - Construction,
Maintenance, or
Industrial related Trades
C C P C C C C P C P C P
v. Other Recreational Uses
Given changes in retail sector due to consumer shifts towards online purchases, entertainment uses are becoming more important for foot traffic generation and reuse of retail facilities. At the same time, there may be a need to add additional recreational facility line items given an overall dependence on the ‘Other Recreational Uses’ line item (R18).
Planning Division processed five CUPs for Other Recreational Uses between 2019 and 2023: two in the C-R zone, two in the C-MU zone, and one in the D-MU zone.
Staff’s recommendation:
• Add a line item for “Escape Rooms” to be permitted “by right ” in Regional Commercial, Commercial Mixed Use, Downtown Mixed Use and Office Professional zones and conditionally permitted in Light Industrial zones 440
• Add a line item for “Indoor Playgrounds” to be permitted “by right” in Regional Commercial, Commercial Mixed Use, Neighborhood Commercial and conditionally permitted in Light Industrial zones
• Additionally, another line item for “Indoor Amusement Facility” could be added to be permitted “by right” in Regional Commercial zone and conditionally permitted in other retail commercial zones to provide flexibility for currently unknown “retail -tainment” concepts that could seek a location in major retail corridors such as Mooney Boulevard.
• Make existing recreation facility uses, such as athletic and health clubs, bowling alleys, etc. permitted “by right” in certain Commercial zones. • An amendment would be necessary to VMC 17.32.120 for video arcades with 5 or more machines, and to address the prohibition of online gambling.
USE C-N C-R C-S C-MU D-MU O-PA O-C BRP I-L I
RECREATION FACILITIES
R3
Athletic and Health
Clubs (gymnasiums,
fitness centers,
racquet clubs)
C P C P C P C C C
R7 Bowling Alleys C P C P C
R13 Ice & Roller Skating
Rinks
C P C P
R14 Pool Halls/Billiard
Parlors C P C P C P C
R16
Video
Machines/Coin-
Operated games – 5
or more machines
C P C P C P C P
Escape Rooms P P P P C
Indoor playgrounds
and trampoline
parks
P P P C
Indoor Amusement
Facilities P C C
R18 Other Recreational
Facilities C C C C C C C
D. Removal of existing land uses already listed in the Zoning Use Table. Staff recommends that uses in Section D be removed generally because they may already resemble other uses that can be found elsewhere in the Zoning Use Table.
i. ‘Sit-Down Restaurant/Café’
The ‘sit-down restaurant w/full bar using greater than 25% of public area’ category has not been used in staff’s recollection. It should be noted that restaurants which serve alcohol must obtain a separate alcohol license which is issued by the state and which contains a set of operating conditions that is enforced by the state , including conditions that ensure revenue sales are primarily from food sales.
Staff therefore recommends removing references in lines E9 and E10 pertaining to “ full bar using less/greater than 25% of public area”, and allow for sit -down restaurants regardless of alcohol sales.
441
USE C-N C-R C-S C-MU D-MU O-PA O-C BRP I-L I
E9 Sit-Down Restaurant/Café
– with or without full bar
using less than 25% of
public area
P P P P P P P P P
E10 Sit-Down
Restaurant/Café– full bar
using greater than 25% of
public area
C C C C C C C C
ii. Residential Alcohol/Substance Abuse Treatment Facility.
This land use is now synonymous with the definition with either a ‘Residential Care Facility’ or ‘Supportive Housing’. These uses provide social care and different levels of personal care in an effort to assist with improving their health and maximizing their ability to live and work.
Staff recommends to remove this line item from the use matrix as ‘Supportive Housing’ already falls under a separate line item and requires a CUP in all zones.
USE C-N C-R C-S C-MU D-MU O-PA O-C BRP I-L I
M62 Residential
Alcohol/Substance
Abuse Treatment
Facility
C
iii. ‘Secondhand Store/Thrift Shops’
Staff believes that second hand/thrift stores can be considered synonymous to general retail that sell merchandise to the general public. Because they could be viewed no different than a general retail store, staff recommends eliminating the line items thereby allowing the use to be treated as general retail. The general retail line currently requires a CUP for any use in excess of 40,000 sq. ft.
No secondhand or thrift stores have sought approval in any zone in the last five years.
USE C-N C-R C-S C-MU D-MU O-PA O-C BRP I-L I
R78 Secondhand
Store/Thrift Shops–
up to 2,000 square
feet
P P P P
R79 Secondhand
Store/Thrift Shops –
greater than 2,000
square feet
P P P C
E. Create definitions or amend existing definitions found in Chapter 17.04 and/or Zoning Use Matrix line items found in Chapter 17.25.
Staff recommends this to provide clarity for uses already listed and create efficiencies in the entitlement process. In many instances, a definition or new use description may provide a more in-depth explanation than relying solely upon listing of examples/types of uses included within the same line item or depending on old industry terminology.
i. Rename ‘Barbers, Hairstylists, Tanning Centers, Cosmeticians & Day Spas’ (B3) to ‘Personal Services’.
442
Recent proposals reviewed by staff reveal a wider breadth of uses that could include other nonmedical services such as eyebrow threading, and skin art. Certain uses that may be quasi-medical in fact , may not be medical in the same manner as procedures deemed necessary for improving health. Examples include Botox, laser hair removal, microneedling, medical spas, and similar aesthetic treatments. Must differentiate other types of personal elective procedures are included for the purpose of self-care and not for medical treatment.
Staff recommendation: Add ‘Personal Services’ to Section 17.04 as, “personal services include barber shops, hairstylists, tanning centers, beauty salons, day spas, and other cosmetic services such as eyebrow threading, skin art, Botox, laser hair removal, microneedling, excluding massage therapy and other types of personal elective procedures for medical treatment.” Also, amend Zoning Use Matrix to reflect new section title.
ii. Heavy Manufacturing and Light Manufacturing.
There is some ambiguity between several existing line items regarding heavy or light manufacturing uses and some clarity would be beneficial to help industries locate in appropriate zones.
Staff recommendation:
• Revise ‘Heavy Equipment/Machine Manufacture/Assembly (welding & fabrication, i.e., agricultural equipment, aircraft equipment parts & supplies, large appliances, auto/truck manufacturing, industrial machinery)’ to become ‘Heavy Equipment/Machine Manufacturing (i.e., agricultural equipment, aircraft equipment parts & supplies, large appliances, auto/truck manufacturing, industrial machinery)’. As ‘assembly’ suggests a different degree of manufacturing intensity and process and is referred to in other line items, staff recommends dropping this term from this particular use classification. Additionally, ‘welding and fabrication’ are manufacturing processes associated with other line items . G iven this line item seems to suggest the most intensive manufacturing process, staff would recommend removing this term as well. • Revise ‘Light Manufacturing/Assembly (i.e., computer hardware & parts, electric supplies – coils, wire, cable, etc.)’ to become ‘Light Manufacturing/Assembly (i.e., computer hardware & parts, electric supplies, consumer goods , etc.)’. Often ‘heavy manufacturing’ and ‘light manufacturing’ differ based upon the end products to be manufactured. ‘Heavy’ often referring to heavy equipment, large machinery, or vehicles whereas ‘light’ refer s to smaller products or consumer goods. Additionally, light manufacturing can also refer to a less intensive manufacturing process such as assembly of pre-manufactured parts.
• Add ‘Hobby/Craft Manufacturing’ to mean establishments manufacturing and/or assembling small products primarily by hand, including but not limited to jewelry, pottery and other ceramics, as well as small glass and metal art and craft products.
Once defined, this use c ould be permitted in Service Commercial, Downtown Mixed Use, and Commercial Mixed Use zones.
• Add ‘Prototype Manufacturing, Non-production scale, Makerspace’ for non-production scale manufacturing to Chapter 17.04. Once defined, this use c ould be permitted by right in I and IL zones and conditionally permitted in the BRP zone.
443
USE C-N C-R C-S C-
MU
D-
MU
O-
PA O-C BRP I-L I
M32
Heavy Equipment/
Machine Manufacturinge/
Assembly (welding &
fabrication, i.e.,
agricultural equipment,
aircraft equipment parts &
supplies, large
appliances, auto/truck
manufacturing, industrial
machinery)
C
M34
Light Manufacturing/
Assembly (i.e., computer
hardware & parts, electric
supplies– coils, wire,
cable, consumer goods,
etc.)
C P P
Hobby/Craft
Manufacturing P P P
Prototype
Manufacturing, Non-
production scale,
Makerspace
C P P
Items 2 through 9: Updates to Zoning Ordinance, not related to the Zoning Use Table
2. Reduce the rear yard setback requirement of 25 feet in Chapter 17.16: Multi-family Residential Zones
Staff’s recommendation: Revise the rear yard setback standards (Section 17.16.090) to allow for reduced rear yard setbacks where there would be little or no effect on surrounding properties. Specifically, staff would suggest 10 -foot rear yards that abut other multi -family residential zoned properties, and a 10 -foot setback for properties not backing onto single - family residential that have a large site area resulting in an excessive amount of space utilized as rear setback area.
The reduction would provide greater flexibility for site design on a property without obligation toward providing a full 25 -foot setback, which may be seen as a large amount of unused or inefficient use of space. The reduction can be justified because multi-family residential zone standards already require an open, common, usable space for use by the tenants that is often not placed in the rear yard setback area. In addition, most Zoning Ordinance standards require only a 5 to 15-foot setback from a side o r rear property line when adjacent to other residential uses.
3. Expand the Zoning Ordinance’s “lighting” development standards in Section
17.30.015: Development standards
Staff’s recommendation: Add stronger language into Subsection H of Section 17.30.015 that includes a numerical standard on the minimum permissible amount of footcandles at a property line adjoining a residential or other sensitive land use. The City routinely establishes a 0.5 lumen standard at property line , which is not the industry standard on how light is measured. Furthermore, the standard is only written into the Site Plan Review comments, 444
which does not pull from an established policy or standard. Additional language is also necessary to provide explicit expectations on outdoor lighting between non -residential and residential land uses, including amount of lighting, intensity, and light pole height.
4. Reevaluate drive-thru performance standards in Section 17.32.162 Staff’s recommendation:
A. Prohibiting drive-thru lanes within 250 feet of a residential zone, except when separated by an arterial roadway . At present, the performance standards require an applicant to undergo the CUP process if a drive-thru use is proposed within 250 feet of a residence or residentially zoned property. However, such a use could still be conceivably approved by the Planning Commission. Note that in such instances, the Planning Commission can and does apply additional conditions to address specific impacts such as including screening walls or limited hours of operation. However, an outright proh ibition for the establishment of drive-thru facilities within a certain distance from residential areas could limit the proliferation of drive-thru lanes and further reduce impacts to residential areas.
There could also be an exception to this requirement when separated by an arterial roadway.
B. Removing or revising the standard addressing menu board orientation. A Conditional Use Permit is only required when a drive -thru lane cannot meet one or more of the six performance standards. Staff’s experience, since implementing all of the drive -thru performance standards, is that the menu board orientation standard has had little to no influence on the overall design of a building and its drive-thru lane(s). The standard was included merely as a preference in order to help improve the aesthetics of a dri ve-thru lane from its street view. If a use were able to meet all other performance standards with the exception of this one, staff would prefer not to process a Conditional Use Permit for the sole purpose of not meeting the menu board orientation standard.
C. Revisiting the standard addressing vehicle stacking to establish the requirements of a queuing analysis/study. In instances where potential uses have been shown to have excessive drive -thru queues, the City could require applicants to submit additional documentation verifying that a proposed drive-thru use will not create increased impacts to the project site and surrounding areas. Studies, such as a vehicle queuing analysis and traffic action plan s, which provide information on usage rates, average wait times, and “line busting” tactics demonstrating how vehicle stacking impacts will be resolved immediately to limit circulation impacts and prohibit vehicle spillover into the public right- of-way, can be required as part of the site plan review or CUP process. The information provided can be employed by staff to address specific impacts identified in the documentation, thereby heading off any potential negative effects. Submittal of documentation also provides staff with additional tools to hold applicants accountable.
5. Update parking standards in Chapter 17.34: Off -Street Parking and Loading Facilities
Staff’s recommendation:
A. Update p arking standards based upon new state laws: Multi-family residential requirements = 1 stall for affordable studio / 1 -bed units and properties along a high transit corridor being exempted from parking requirements. State law, including Assembly Bill 2097 which took effect in 2022, has superseded local zoning laws for parking requirements applicable to multi-family residential with affordability requirements and to uses located along a high transit corridor as defined by the state. 445
Staff would recommend that the city’s Zoning Ordinance be updated to reflect the state standards. In addition, a brief statement should be added to the Zoning Ordinance Parking Standards Chapter acknowledging that from time to time state laws may be adopted that usurp local standards, and such laws remain applicable even if not reflected in the City ordinances . It should be noted that the City’s parking requirements still remain applicable for properties outside of a high transit corridor or for market-rate multi- family units.
B. Re-evaluate parking standards for Dance, martial arts, gyms, and yoga studios .
Presently the Zoning Ordinance does not specify a parking requirement for this type of use, which has been a more frequent land use over the years. This has caused staff to seek a similar land use to base parking standards from. In lieu, staff recommend that a parking standard specific to this use be researched and added to the Zoning Ordinance.
6. Amend Chapter 17.36: Fences, Walls, and Hedges
Staff’s recommendation:
A. Clarify wording regarding use of barbed wire. Existing Zoning Ordinance text is ambiguous on where barbed wire and electric charged fences are allowed and not allowed. The code simply states that such fences “are prohibited in any R -1-or R-M zone”. Staff has relied on the restrictive nature of the Zoning Ordinance wherein it must state that uses and features are permitted, otherwise they are not allowed. Applicants seeking to place these types of fences, generally on service commercial and industrial zoned properties, currently must seek approval of a Variance. Staff would favor allowing barbed wire and electric charged fences in appropriately zoned locations and would support a text amendment to clarify this.
B. Fencing materials allowed needs to be defined. Existing text does not include any listing of materials that fences may or may not be constructed of, notwithstanding barbed wire and electric charged fences. Staff desires for a text amendment to list acceptable or prohibited materials in order to mainta in an aesthetic quality in neighborhoods and development. For example, wood panel, wrought iron, and chain link fence would all be permissible types of fencing, while the use of corrugated panels or plywood sheets would not be permissible.
7. Reevaluate Temporary Conditional Use Permits (TCUPs) processes and standards in Section 17.38.070.
Staff’s recommendation: Existing Zoning Ordinance text pertaining to CUPs for temporary uses has not been updated in decades and does not address current practices and applicability for the issuance of TCUPs. Currently, a majority of TCUPs are issued for the allowance of food trucks and are otherwise issued for outdoor sales and events. Staff desires to update the code to accurately reflect the maximum time period for TCUPs, minimum vacancy periods between TCUP permits, and to give a list of uses subject to a TCUP.
8. Add clarifying language pertaining to the scope of a ‘minor variance’ allowed under the Master Sign Program in Section 17.48.140.
Staff’s recommendation: Existing Zoning Ordinance text pertaining to master sign programs, which are issued through CUPs, allows for “minor variations in dimensional standards and other limitations of [the Sign Ordinance]. However, minor variations are not strictly defined and therefore can be widely interpreted, as was the case for a recent Master Sign Program that included excessive wall signage for a warehouse retail store. Staff 446
therefore desires to provide additional language that sets a limit to the amount of variation allowed through a master sign program.
9. Changes to the Zone Use Table in 17.25
The following changes are larger in their scope and therefore may require a greater amount of rewriting and review. These changes could be deferred until a future separate ZTA that would include additional complex changes to the Zoning Ordinance. Alternately, the Planning Commission could direct staff to move forward with bringing these changes to a future work session or incorporate into the scope of the current Section 2.
Staff’s recommendation:
A. Re-evaluate Industrial zone allowed uses, based upon the General Plan / Zoning Ordinance Update re-designating large areas from Light Industrial to Industrial. There are many uses allowed in Service Commercial zone that may be appropriate in Light Industrial or Industrial zones. Example: allow ‘Air Conditioning Shops’ (S9) in I zone as a type of contractor yard. This could also include other line items such as RV/boat storage, Glass Stores, Taxi/Limousine Service, Public Utility Service Yards, Sheet Metal Shops, local bus charter, school bus yards, and Ambulance Services.
B. Consider adding new permitted and/or conditional uses such as medical offices to the Business Research Park Zon e (BRP) . As mentioned above in section 1.C., g iven development in the BRP has been slow to take off, with most of the new projects being either food services/retail or hotel, with little on the horizon for additional office space or research park, it may be appropriate to consider additional office use types . Such uses could include medical and light assembly or uses complementary to industrial uses. Some specific suggestions have been made in section 1. C. and 1. E. listed above.
BACKGROUND INFORMATION
Environmental Review:
The requested action would be considered exempt under Section 15061(b)(3) , Per Section 15061(b)(3) of the State Guidelines for the California Environmental Quality Act (CEQA). A Notice of Exemption has been prepared for the project because Section 15061(b)(3) states that the project is exempted from CEQA if the activity is covered by the commonsense exemption that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.
447
RESOLUTION NO. 2024-70
RESOLUTION NO. 2024-70
A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF VISALIA, RECOMMENDING APPROVAL OF ZONING TEXT AMENDMENT NO. 2024-02,
A REQUEST BY THE CITY OF VISALIA TO AMEND VISALIA MUNICIPAL CODE TITLE 17 (ZONING ORDINANCE) BASED ON MULTIPLE FACTORS INCLUDING, BUT NOT LIMITED TO: STREAMLINING OF LAND USE REVIEW, CHANGES IN BUSINESS AND/OR DEVELOPMENT TRENDS AND ACTIVITY.
WHEREAS, Zoning Text Amendment No. 2024-02 is requested by the City of Visalia to amend Visalia Municipal Code Title 17 (Zoning Ordinance ) based on multiple factors including, but not limited to: streamlining of land use review, changes in business and/or development trends and activity. The specific amendments apply City-wide and are specified in Attachment “A” of this Resolution; and
WHEREAS, the Planning Commission of the City of Visalia , after duly published notice, held a public hearing before said Commission on December 9, 2024; and
WHEREAS, the Planning Commission of the City of Visalia considered the Zone Text Amendment in accordance with Section 17.44.070 of the Zoning Ordinance of the City of Visalia and on the evidence contained in the staff report and testimony presented at the public hearing; and
WHEREAS, the project is exempt under the California Envi ronmental Quality Act (CEQA) Guidelines section 15061(b)(3) (common sense exemption).
NOW, THEREFORE, BE IT RESOLVED that the Planning Commission recommends that the City Council concur that the project is exempt from further review under the California Environmental Quality Act (CEQA) Guidelines section 15061(b)(3) (common sense exemption).
BE IT FURTHER RESOLVED that the Planning Commission of the City of Visalia recommends approval to the City Council of the proposed Zone Text Amendment based on the following specific findings and evidence presented:
1. That the Zoning Text Amendment is needed to achieve the objectives of the Zoning Ordinance (Visalia Municipal Code Title 17) prescribed in Code Section
17.02.020.
2. That the proposed Zone Text Amendment is consistent with the intent of the General Plan, and Zoning Ordinance, and is not detrimental to the public health, safety, or welfare, or materially injurious to properties or improvements in the vicinity.
3. The Zoning Text Amendment makes various updates b ased on changes in business and/or development trends, development activity, and streamlining of land use review.
4. That the project is exempt from further review under the California Environmental Quality Act (CEQA) Guidelines section 15061(b)(3) (common sense exemption).
448
RESOLUTION NO. 2024-70
BE IT FURTHER RESOLVED that the Planning Commission of the City of Visalia recommends approval to the City Council of the Zone Text Amendment described herein in Attachment “A”, in accordance with the terms of this resolution and under t he provisions of Section 17.44.070 of the Ordinance Code of the City of Visalia.
Commissioner Peck offered the motion to this resolution. Commissioner Davis seconded the motion and it carried by the following vote:
AYES: Commissioners Peck, Davis, Norman, Tavarez, Beatie NOES:
ABSTAINED:
ABSENT:
STATE OF CALIFORNIA)
COUNTY OF TULARE ) ss
CITY OF VISALIA )
ATTEST: Paul Bernal, Community Development Director
I, Paul Bernal, Secretary of the Visalia Planning Commission, certify the f oregoing is the full and true Resolution No. 2024 -70, passed and adopted by the Planning Commission of the City of Visalia at a regular meeting held on December 09, 2024.
Paul Bernal, Community Development Director
Mary Beatie, Chairperson
449
RESOLUTION NO. 2024-70
Resolution No. 2024-70
ATTACHMENT “A”
Zoning Text Amendment No. 202 4-02, implementing numerous amendments to Title 17 (Zoning Ordinance) based on factors including, but not limited to, streamlining of land use review, changes in business and/or development trends and activity.
Changes to City of Visalia Municipal Code, as specified by underline and italics for additions and strikeout for deletions.
CHAPTER 17.04 regarding new or modified definitions:
Section 17.04.030 Definitions.
“Event Centers” means a facility operated by any person, entity, or organization where private parties may hold weddings, receptions, special gatherings, or other social, civic, or entertainment activities. The facility may be indoors, outdoors, or a combination of both. This does not include retail sales, theaters, private clubs and lodges, athletic/playing fields, and hosting of sporting events. Other uses operated within the facility which are otherwise listed within the Zones Use Matrix, including but not li mited to churches and specialized schools, may be allowed to utilize the facility without additional entitlements provided that such other uses are not the sole and primary use operated in the facility and are limited to indoor operation only.
“Media Studio” means a studio space dedicated to the recording, production, and/or editing of audio and/or visual art forms or the broadcast via radio, television, internet or other media of audio and/or visual art forms, or the combination of any of the above.
“Battery Energy Storage System” means a permanent facility that charges (i.e., collects energy) from an electrical grid or a power plant and then discharges that energy at a later time through an electrical grid.
“Residential Unit Reoccupation” means a single-family dwelling, situated in a non- residential zone classification and which does not contain any on-site commercial or office business, that occupies an existing structure that was originally fabricated for the intended purpose as a residential dwelling unit. The single-family dwelling may or may not have a business associated with a home occupation permit.
“Galleries” mean an establishment engaged in the sale, loan, or display of art, photography, crafts, paintings, sculpture, or other works of art. This clarification does not include libraries or museums.
“Animal Day Care Facility” means an establishment where dogs, cats, or other small domestic animals are provided such services as day care for all or part of a day, obedience classes, training, grooming, exercising, socializing, or behavioral counseling, provided that overnight boarding is not permitted.
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“Kennel” means an establishment where dogs, cats, or other small domestic animals are boarded, trained, or bred.
“Animal Hospital” means an establishment for dogs, cats, or other small domestic animals to receive medical or surgical treatment, whether emergency or non- emergency, and are cared for during the time of such treatment. Use as short-time boarding (i.e., as necessary for medical observation, monitoring, and treatment) shall be only incidental to such hospital use. An animal hospital which provides short term boarding may operate 24 hours a day in an Industrial zone or if specified in a conditional use permit.
“Commercial Bakery” means an establishment that is primarily engaged in manufacturing bread, bread-type rolls, and dry bakery products. The establishment will either not directly sell on the premises to consumers, or will conduct limited sales on the premises to consumers as an ancillary use to the bakery.
“Commercial Kitchen” means a facility equipped to prepare food or meals to be delivered off-site to a residential and/or commercial establishment, wherein the space is not open to patrons on-site.
“Clothing Imprinting” means a commercial operation involving a process that is considered printing, imprinting, reproducing, or duplicating images and using printing methods upon clothing or garments, including but not limited to the use of stitching, sewing, lithography, and screen process printing.
“Museum” means an establishment serving as a repository for a collection of natural, scientific, or literary curiosities or objects of interest, or works of art, and arranged, intended, and designed to be used by members of the public for viewing, with or without an admission charge, and which may include as an accessory use the sale of goods to the public as gifts or for their own use, and the holding of meetings and social events.
“Convenience Stores” Means a small retail establishment, generally but not limited to under 7,000 square feet, which can be located within or associated with another use, that offers for sale convenience goods such as prepackaged food and drink items, periodicals, and other convenience goods or household items for the convenience of the neighborhood. Such establishments may include the sales of alcohol and/or tobacco products; however, the sale of each such line of products shall clearly be accessory to the overall range of goods offered within the establishment. Co nvenience stores which operate in a manner that meets the definition of “tobacco shop”, as defined in Section 8.46.030, shall be subject to the definition of “Tobacco Shop”.
Convenience stores having the sale of alcohol which comprises the majority of gross sales shall be subject to the definition of “Liquor Store”, as defined in Section
17.04.030.
“Tutoring Center” Means an establishment providing instruction to students typically on an individual basis, for personal or professional enrichment, involving scholastic, non- physical pursuits, including but not limited to academics, language instruction, music instruction, and computer training. Establishments providing instruction as a part of a certificate or degree granting program are not to be considered a Tutoring Center and 451
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subject to the most appropriate use found in the “Schools, Public and Private” section of Table 17.25.030.
“Car Sales” means the use of any building or premises, or portion thereof, as a retail establishment for the display and sale of new and/or used motor vehicles. The use may also conduct warranty repair work and other repair service and the sales of parts and accessories as an accessory use to the sale of motor vehicles. This definition does not include an establishment that does not display any on-site vehicles, as such use shall be classified as a professional office.
“Clinic” means a medical facility that operates as an urgent care or walk-in clinic, or is a multi-disciplinary or specialty medical group practice, that is limited to outpatient services or surgeries only and does not provide overnight stays. Treatment at the facility is provided by two or more physicians, dentists, or other professionals that provide health care, chiropractic, psychiatric, or psychology services. This classification does not include hospitals.
"Medical Officebuildings" means a medical facility that operates as an appointment- based medical group practice, that is limited to outpatient services or surgeries only and does not provide overnight stays. Treatment may be provided by one or more of the following: physician, dentist, optometrist, physical therapist, chiropractor, psychiatrist, psychologist, or similar health care professionalclinics or offices for doctors, dentists, oculists, chiropractors, osteopaths, chiropodists, or similar practitioners of the healing arts; including accessory laboratories and a prescription pharmacy, but not including offices for veterinarians.
“Professional Office” means a place of employment occupied by a person or persons generally employed in a professional, administrative, or clerical position. This definition includes offices for accountants, advertising agencies, insurance agents, commercial art and design services, non-retail financial institutions, real estate agents, architects, engineers, employment agencies, real-estate agents, counselors, and other similar professions. This does not include offices for persons employed in a medical field.
Counseling or therapy services shall not include medical examinations, dispensing of drugs or medication, or other treatments normally conducted in a hospital or clinic.
“Professional Office with Social Services” means a professional office that generally provides group counseling or therapy services in a non-medical setting which includes the providing of social services or wraparound services, life skills training, recovery sessions for substance abuse, food distribution (not for on-site consumption), clothing distribution, and other programs not involving drug dispensing or psychologist counseling. This does not include offices for persons employed in a medical field, nor does it include any type of emergency shelter.
“Vocational or other Specialized Schools – Non-industrial Trades” means a school established to provide for the teaching of professional clerical, managerial, artistic, or similar skills or trades. This definition applies to schools that are owned and operated privately for profit, or not-for-profit, and that do not offer a complete educational curriculum. Examples include, but are not limited to, beauty, modeling, culinary, cosmetology, arts and media, music, accounting and finance, health and dental 452
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including nursing, legal, psychology, and technology. The definition does not include uses wherein the building contains a space dedicated for training of workforce skills, wherein the space is ancillary to the primary use.
“Vocational or other Specialized Schools – Industrial Trades” means a school established to provide for the teaching of industrial skills. This definition applies to schools that are owned and operated privately for profit, or not -for-profit, and that do not offer a complete educational curriculum. Examples include, but are not limited to, construction, industrial occupations, truck driving, machinery, vehicle repair and maintenance, and welding. The definition does not include uses wherein the building contains a space dedicated for training of workforce skills, wherein the space is ancillary to the primary use.
“Indoor Amusement Facilities” means an establishment that provides entertainment activities or services in an indoor setting for a fee or admission charge. This definition includes uses that are listed separately in the zone use matrix (i.e. athletic and health clubs (racquet clubs), bowling alleys, ice & roller skating rinks pool halls, arcades, escape rooms, indoor playgrounds and trampoline parks). Uses which are not listed separately in the zone use matrix shall be classified as other Indoor Amusement Facilities.
“Escape Room” means a type of indoor amusement facility consisting of one or more rooms wherein a group of persons within a room must solve a series of tasks and puzzles in order to exit from the room.
“Personal Services” Means establishments that provide personal nonmedical elective procedures for the purpose of self-care. Procedures includes but is not limited to barber and beauty shops, day spas, tanning centers, and cosmeticians. These uses may include certain elective procedures for the improvement of health but not deemed necessary for improving health, such as botulinum toxin injections, laser hair removal, microneedling, medical spas, and similar aesthetic treatments. These uses may also include accessory retail sales of products related to the services provided. This definition does not include massage establishments or an establishment which includes massage services.
“Heavy Manufacturing” means manufacturing of materials in a raw form. Any industrial use that generates considerable noise, odor, vibration, illumination, or particulate that may be offensive or obnoxious to adjacent land uses or requires a significant amount of on-site hazardous chemical storage shall be classified under this land use. This use shall include any packaging of the product being manufactured on-site. Examples include but are not limited to the production of the following: agricultural equipment, aircraft equipment parts & supplies, large appliances, auto/truck manufacturing, industrial machinery.
“Light Manufacturing” means assembling or mixing, where previously processed components or manufactured parts produced off-site are fitted together into a complete 453
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machine or blended together to form a non-combustible and non-explosive product. The assembling or packaging shall not produce noise, vibration, hazardous waste materials, or particulate that create significant negative impacts to adjacent land uses. Odors produced on-site shall not negatively affect other businesses or properties in the area.
Examples of assembling include but are not limited to the production of the following:
computer hardware & parts, electric supplies, consumer goods, toys, mechanical components, industrial machinery, small vehicle assembly.
“Hobby/Craft Manufacturing” means establishments manufacturing and/or assembling small products primarily by hand, including but not limited to jewelry, pottery and other ceramics, as well as small glass and metal art and craft products.
“Prototype Manufacturing or Makerspace” means a non-production scale manufacturing in an incubator workspace environment that can include such activities as machining, plasma cutting, sandblasting, ventilated painting, forging, casting, ceramics, and similar other industrial processes. Such workspaces may utilize tools and equipment including but not limited to three-dimensional (3D) printers, laser cutters, computer numerical control (CNC) machines, soldering irons, blacksmith equipment, and woodworking machinery.
Chapter 17.24 regarding uses in Business Research Park Zone
Section 17.24.010 Purpose.
B. The purpose and intent of the planned business research park zone district is to provide for business, scientific, educational, medical offices, and light industrial uses in a campus -type setting. Planned business research parks a re to be planned and developed as integrated units via specific or m aster plans and are intended to accommodate large -scale office developments at locations that provide close -in employment opportunities; promote Visalia's community identity through specia l site development standards such as lot sizes, setbacks, landscaping, building scale, parking, open areas, etc.; and provide on -site ancillary uses including day care, food service, banks, recreation, etc., served by a variety of transportation modes to r educe vehicle trips.
CHAPTER 17.25 regarding new, modified, or deleted Zone Use Table line items:
In this section, changes are specified by underline for additions and strikeout for deletions.
Section 17.25.030 Commercial, Office, and Industrial Zone Use Table.
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CHAPTER 17.32 regarding new or modified Special Provisions:
Section 17.32.168 Automated Car Washes
A. The queue lane shall not be visi ble from the public right -of-way. This shall be achieved by designing the site in a manner such that the queue lane is not located parallel with public street frontages, or by incorporating screening along a queue lane to a minimum height of three fee t utilizing a combination of berms, hedges, and/or landscape materials, or solid walls if necessary.
B. The queue lane for entering the car wash structure shall not be located within 25 feet of a residential-zoned property or a parcel containing a n existing residence or a sensitive receptor.
C. A noise analysis addressing noise impacts in conformance with the City of Visalia’s Noise Ordinance (Chapter 8.36) shall be required and accepted by the City Planner if the car wash is located within 1,000 feet of an e xisting residence or a sensitive receptor. Compliance of the noise levels , subject to the Visalia Noise Ordinance, shall be verified by the acoustical consultant or their designee prior to operation.
D. For car washes requiring a noise analysis , hours of operation beyond 7:00 p.m. shall only be permissible if supported by a noise analysis that confirms the car wash will not be inconsistent with the City of Visalia’s Noise Ordinance (Chapter 8.36).
E. A traffic study which analyzes the impact of the propose d carwash on adjacent and nearby intersections may be required. The limits of this study shall be established by the City Engineer.
F. Adequate means of eliminating grease and oils from drainage systems shall be provided, such as through the installation of a sand-oil separator. 489
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17.32.120 Video machine arcades.
It is the purpose of this section to set forth development and operational standards for arcades. Such standards are adopted to protect the public welfare from potential problems associated with the operation of video machine arcades.
A. Definitions. For the purpose of this section the following definitions shall apply:
"Video arcade" means a commercial establishment that contains five or more "video machines.” and its primary business i s generated from sales occurring through use of the “video machines.” Businesses that operate “video machines” as an ancillary use are not considered “video arcades.”
"Video machine" means any machine, device or apparatus, the operation or use of which is permitted, controlled, allowed or made possible by the deposit or placing of any coin, plate, disc, slug, or key into any slot, crevice or other opening or by the payment of any fee or fees, for the use as a game, contest, which is operated through the use of electronic means with images and sounds transmitted through a cathode ray tube.
B. Permits Required.
1. Video arcades may be approved as a conditional permitted use in the C -N, C-R, C-MU and D-MU zones pursuant to Chapter 17.38 of the Visalia zoning regulations.
2. Video machines, up to four in number, may be approved by the planning department pursuant to Section 17.38.070 (temporary uses) of the zoning regulations.
Such permits shall be subject to the operational criteria set forth i n subsection (C) of this section.
CB. Operational Criteria.
1. Location. Video machines and arcades shall not be located closer than six hundred (600) feet to any public schools, grades kindergarten through twelfth grade.
2. Hours of Operati on. Normal hours of operation shall be between the hours of ten10:00 a.m. and eleven11:00 p.m. unless alternate hours are approved by the city council as part of a conditional use permit. Machines located in businesses may be operated during normal busines s hours if approved by the planning department (four or fewer machines) or city council (arcades) . In any case, school aged children shall be prohibited from operating video machines while school is in session.
3. Security/Supervision. The use shall be under the supervision of an adult during all hours of operation. Additional supervision or security may be required as deemed necessary by the city council under the terms of the conditional use permit . The work station of the adult attendant shall be suc h that the entry and immediate outside area is visible. Supervision responsibility shall extend to the public and/or parking areas in the vicinity of the arcade.
4. Alcoholic Beverages. No alcoholic beverages shall be allowed to be bought or consumed on the premises, including the public and/or private areas in the vicinity. This shall not apply to businesses that are licensed and approved for alcoholic beverage sale and use, such as a bona-fide restaurant.
5. Noise. No noise or sound generated by an arcade shall be audible outside of the arcade building.
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6. Loitering. Gathering and loitering of individuals in the arcade and public and/or parking areas in the vicinity of the arcade shall be prohibited.
DC. Monitoring of Use. Periodic inspections, which may or may not be announced in advance, may be conducted by the city to ascertain compliance of any arcade with these operational standardsthe conditions of the use permit under which the arcade is operating. Violations of the conditional use permit or the provisions of this section shall be subject to enforcement under the provisions of Chapter 17.46 of the zoning regulations. Continuing violations may lead to revocation of the conditional use permit for an arcade, as set forth under Section 17.38.040 of the zoning regulations. (Ord. 2017-01 (part), 2017: prior code § 7488)
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Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 24-0578 Agenda Date: 2/3/2025 Agenda #: 7.
Agenda Item Wording:
Authorize Homekey+ Grant Application - Authorize staff to apply for Homekey+ funding not to exceed $12 million to assist with the development of Crescent Meadows, a senior affordable housing complex with 25 Homekey+ eligible units, upon the completion of the application by the partner agency Crescent Meadows, L.P. to fully comply with the grant and City requirements.
Deadline for Action: 2/3/2025
Submitting Department: Finance and Technology Services
Contact Name and Phone Number: Margie Perez, Housing Specialist, [email protected] <mailto:[email protected]>, (559)713-4460; Melody Murch Assistant Finance Director, [email protected] <mailto:[email protected]>, (559)713-4379; Renee Nagel, Finance Director, [email protected] <mailto:[email protected]>, (559)713-4375 Department Recommendation:
Staff recommends that Council:
· Receive a summary of the funding available for the Homekey+ program and authorize staff to submit a joint application with Crescent Meadows L.P. for the Homekey+ 2024 Notice of Funding Available (NOFA) not to exceed $12 million dollars to assist with the development of Crescent Meadows to provide senior affordable housing with 25 Homekey+ eligible units for senior experiencing or at-risk of homelessness;
· Adopt Resolution 2025-02 authorizing a joint application with Crescent Meadows, L.P., for the Homekey+ program as required by California Department of Housing and Community Development; and
· Authorize the Mayor to sign Resolution 2025-02.
Background Discussion:
On November 26, 2024, the California Department of Housing and Community Development (HCD) in collaboration with the California Department of Veterans Affairs (CalVet), announced the availability of approximately $2.145 billion of Homekey+ grant funding statewide and approximately $117 million will be available for the San Joaquin Valley, derived from Proposition 1 as shown in Attachment “A” - Homekey+ NOFA. Homekey+ is the permanent housing component of the Behavioral Health Infrastructure Bond Act, part of Proposition 1 passed by California voters in March 2024. Homekey+ supports the development of Permanent Supportive Housing (PSH) for Veterans and individuals with mental health or substance use disorder challenges who are at-risk of or experiencing homelessness.
Homekey+ NOFA Timeline: The Homekey NOFA was released on November 26, 2024. The application period for these funds is expected to begin in late January 2025. Gap financing project applications are due April 3, 2025. All other project applications are due May 30, 2025, or until funds Visalia City Council Printed on 1/30/2025Page 1 of 6
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are exhausted, whichever occurs first. The City of Visalia’s Homekey+ application is a gap financing project, which is due no later than April 3, 2025. New construction and gap financing projects must break ground within 6 months of award and be completed with 24-months of award. All other projects including project conversions (i.e. motel/hotel conversions) must be completed within 12-months of award.
Crescent Meadows: On January 3, 2025, Self-Help Enterprises (SHE) submitted a formal request to partner with the City of Visalia as a co-applicant on a Homekey+ application for phase 1 of Crescent Meadows, an 80-unit senior affordable housing project with one- and two-bedrooms located at the northwest corner of Ferguson Ave. and N. Dinuba Blvd. in the City of Visalia. Crescent Meadows is being developed by Crescent Meadows, L.P. a California Limited Partnership in partnership with SHE, and Visalia Senior Housing (VSH). The project will be affordable senior housing serving individuals over the age of 62, and 25 units will be set aside for seniors experiencing homelessness, or at-risk of homelessness. The project includes a community center which will provide office space for a full-time on-site manager and resident services staff and will be available for gatherings and community workshops. Crescent Meadows will be an all-electric project which includes renewable solar photovoltaic (PV) technology to off-set 100% of the residential and common area electrical loads. The result will be a project that is affordable to operate and generates as much energy as it uses, creating zero net energy (ZNE). Site amenities include a pickleball court, accessible drop off/pick up locations, and a loop walking trail that connects with the existing Visalia trail system to allow for safe and accessible recreation. The community center will be equipped with an active listening system to allow ease of use for the hearing impaired, and a partnership with Family Healthcare Network will allow aging-in-place support to extend the length of time residents can remain independently housed.
Crescent Meadows is the only project that has requested assistance from the City to apply for Homekey+ funds. Crescent Meadows is also the only known project within the City that will meet Homekey+ NOFA rigorous timelines. In addition, during the work session held on December 3, 2024, Council requested to include senior affordable housing in the next 5-year Consolidated Plan. This project will assist in meeting Council’s expressed priority to provide much needed affordable senior housing in the City of Visalia. Crecent Meadows total project development costs are estimated to be $36 million. The project has secured approximately $11.5 million and is seeking approximately $13.5 million in Limited Partner Equity funding; therefore, it has a remaining development gap of $11,250,000, as shown below in Table 1 - Crescent Meadows Development Funding.
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Homekey+ NOFA: The Homekey+ funding available in this NOFA is targeted to provide Permanent Supportive Housing for individuals or households with an individual who is Homeless, Chronically Homeless, or At Risk of Homeless, and who are also living with a Behavioral Health Challenge.
Homekey+ provides applicants the flexibility to take advantage of opportunities available within their specific communities that will result in the prompt acquisition and availability of new homes with a focus on cost containment. It will also finance new construction for projects that can be built quickly in a cost-efficient manner. Examples of eligible uses include acquisition and rehabilitation of existing sites (e.g. hotels/motels, apartments), master leasing, new construction, and the purchase of affordability covenants. All Homekey+ projects are required to have an abundance of supportive services within one-half mile or on-site to ensure tenants long-term housing stability and prevent recidivism.
Eligible Applicants: Cities, counties, cities and counties, and all other state, regional, and Local Public Entities, including councils of government, metropolitan planning organizations, Public Housing Authorities, and regional transportation planning agencies. Each entity may apply independently or jointly with a nonprofit or for-profit organization, a limited liability company (LLC), and/or a limited partnership (LP) as a Co-Applicant. A Local Public Entity is required as a lead Applicant.
Program Deadlines: New construction and gap financing projects must break ground within 6 months of award. New construction and gap financing projects must be completed within 24-months.
Full occupancy must be achieved within 90-days of completing construction. HCD reserves the right to recommend special conditions for longer occupancy timeframes for larger projects over 75 units up to an additional three (3) months.
Gap Financing Project Requirements: HCD will accept gap financing applications from Projects which meet, or could meet, the population targeting requirements of Homekey+ but have not started construction. The intent is to move projects, forward that are otherwise “shovel ready” and thereby quickly increase the number of units available. Applications will be prioritized as follows:
i. Projects with an Existing HCD Award Commitment with a pending disencumbrance per HCD’s disencumbrance policy within 6 months of the date of this NOFA.
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ii. Projects with an Existing HCD Award Commitment with at least one prior unsuccessful application for tax credit/bonds ranked by total HCD funds committed. iii. All other HCD funded Projects ranked by total amount of HCD funds committed. a. All prior Homekey Projects awarded as “interim to permanent”, seeking funding to convert interim units to Permanent Supportive Housing, fall into this category. Only Projects that complied with the terms of the original Homekey “interim to permanent” award by completing construction and are currently achieving full on-site occupancy as interim housing will qualify for this funding. HCD at its sole discretion will determine compliance.
iv. All other Projects that are stalled due to an unsuccessful tax credit/bond application ranked by total amount of public resources committed (may include resources such as local or federal funding, donated land, etc.).
Self-Help Enterprises has been awarded $5,713,219 in HCD National Housing Trust Funds (NHTF) for the Crescent Meadows project; therefore, qualifies as a Homekey+ Gap Financing Project.
Homekey+ Requested Funding:
For the purposes of this gap financing Projects only, Homekey+ will award no more than $450,000 per unit, inclusive of any Operating Award needed to buy down units originally contemplated as higher than 30% AMI. Any amount over $450,000 per unit will be required to provide an Enforceable Funding Commitment at the time of application.
Applicants may seek gap financing for all units or a portion of units. If Applicants seek gap financing for only a portion of units, an alternative, nonHomekey+ source is required at the time of application to fill any capital gaps associated with the non Homekey+ units. All units funded by Homekey+ will be required to serve the Target Population. Crescent Meadows plans to apply for 25 Homekey+ units; resulting in a maximum of $11,250,000 in Homekey+ funding as shown below in Table 2 - Crescent Meadows Potential Homekey+ Funding. However, per HCD’s guidance the City will be rounding up to request $12 million in the event the Homekey+ award is greater than the City’s projection. If the application amount approved by Council is not sufficient, it could compromise an award because HCD cannot award more than the Applicant is authorized by their governing body to apply for or receive.
If the Crescent Meadows project does not get awarded Homekey+ funding or only receives partial Homekey+ funding, SHE will continue to seek additional funding, such as, the Continuum of Care Build, HOME Investment Partnership Program (HOME), and Multifamily Housing Program (MHP).
Homekey+ Gap Financing Terms, Deadlines, and Restrictions:
Homekey+ financing terms, deadlines, and restrictions are as follows. · Gap financing awards will be in the form of a grant. All Homekey+ gap financing awarded Projects must commence construction no later 6 months, starting 60 days from the date of the Homekey+ Conditional Award letter. HCD may, in its sole and absolute discretion, Visalia City Council Printed on 1/30/2025Page 4 of 6
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extend this deadline due to conditions beyond the control of the Sponsor, for a period not to exceed 90 days.
· The Homekey+ gap financing awarded project must receive, and submit evidence to HCD, a temporary certificate of occupancy (TCO) within 24 months, starting 60 days from the Homekey+ Award.
· Homekey+ gap financing Grantees are prohibited from applying for or receiving a tax credit allocation on a Homekey+ funded project for a period of 20 years from the Homekey+ Conditional Award date for the project.
· If, following a Homekey+ application and award, a Sponsor syndicates and sells a portion of their ownership interest to a partner or equivalent party seeking tax losses associated with the project, nine-tenths of the gross proceeds of that sale shall be remitted to HCD. Negative points may be assessed to the Sponsor in the event the project is sold or refinanced with a distribution of net equity. Therefore, resulting in negative points on future HCD applications in accordance with HCD’s Negative Points Policy.
Supportive Service Requirements: To be eligible to receive funding, all applications must include a Project-specific Supportive Services plan, that shall be consistent with any representations made in the Homekey+ application, and it shall meet the Homekey+ Program Requirements. Supportive services must be within one-half mile of the project site or provided on-site to be easily accessible to tenants. Service requirements include but are not limited to enhanced case management, peer support activities, mental health care, substance use services, support in linking physical health care and dental health care, assistance in accessing and maintaining SSI/SSD, assistance in enrollment and maintaining Medi-Cal and CalFresh, basic housing retention skills, recreation and social activities, education services, employment services, and legal services.
Tenant Referrals: Referrals to Homekey+ Assisted Units shall be made through the local Coordinated Entry System (CES), or another comparable prioritization system based on greatest need for housing and services, to determine the most appropriate referral. Homekey+ units should be reserved for serving the Target Population where households are more appropriately served by permanent supportive housing, including referrals from persons exiting encampments. Households with lower levels of need may be better served by other housing and less intense service interventions.
Housing First: Homekey+ projects shall employ the core components of Housing First in its property management and tenant selection practices. Projects shall accept tenants regardless of sobriety, participation in services or treatment, history of incarceration, credit history, or history of eviction in accordance with practices permitted pursuant to Housing First practices, including local CES prioritization protocols, or other federal or state Project funding sources.
Affordability Covenant: Homekey+ Projects require a 55-year Affordability Covenant for permanent supportive housing that (a) is recorded in first position against the project real property for the benefit of the City, (b) restricts the use, operation, occupancy, and affordability of the project in accordance with all applicable requirements of the Homekey+ Program Requirements.
Grantee Liability: The City as the lead applicant shall remain liable if awarded Homekey+ funds for performance and compliance with all program requirements regardless of a third party undertaking all or any of the Scope of Work. Likewise, each co-applicant shall remain jointly and severally liable to Visalia City Council Printed on 1/30/2025Page 5 of 6
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HCD for performance and compliance with all Homekey+ program requirements regardless of any third party for the undertaking of all or any part of the scope of work. Therefore, both the City and co- applicant are equally responsible for compliance of Homekey+ program requirements including ensuring the 55-year affordability covenant. Given the longevity and long-term quality performance of both Self-Help Enterprises and Visalia Senior Housing, and the funding/partnerships already in place, staff is comfortable that this is a low risk proposal for all parties.
Fiscal Impact:
If awarded, the Homekey+ funding will generate approximately $12 million toward the development of the Crescent Meadows project to provide permanent supportive housing to seniors 62-years and older. No additional funding is requested from City grant sources as part of this application, and there is no General Fund money budgeted for this project. This project will be requesting HOME CHDO Senior Housing project funding in the next 5-year Consolidated Plan.
Prior Council Action: ● December 3, 2024: FY 2025/26 - FY 2029/30 Consolidated Plan (ConPlan) work session discussion to include senior affordable housing in the next 5-year ConPlan.
Other: None
Alternatives: Do not apply for Homekey+ funding for Crescent Meadows.
Recommended Motion (and Alternative Motions if expected):
I move to:
· Authorize staff to apply for Homekey+ program funding as a joint application with Crescent Meadows, L.P. not to exceed $12 million dollars to assist with the development of Crescent Meadows to provide senior affordable housing that includes 25 Homekey+ eligible units for seniors experiencing or at-risk of homelessness;
· Adopt Resolution 2025-02 authorizing a joint application with Crescent Meadows, L.P., for Homekey+ program funding as required by the California Department of Housing and Community Development; and
· Authorize the Mayor or their designee to sign Resolution 2025-02.
Environmental Assessment Status: Not applicable.
CEQA Review: Not applicable.
Attachments:
● Attachment A - Homekey+ NOFA
● Attachment B - Homekey+ Facts Sheet
● Attachment C - SHE’s Crecent Meadows Request
● Attachment D - Resolution 2025-02
Visalia City Council Printed on 1/30/2025Page 6 of 6
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STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor
November 26, 2024
MEMORANDUM FOR: Potential Applicants
FROM: Jennifer Seeger, Deputy Director
Division of State Financial Assistance
SUBJECT: Homekey+ Program
2024 Notice of Funding Availability
The California Department of Housing and Community Development (HCD or Department), in collaboration with the California Department of Veterans Affairs (CalVet), is pleased to announce the availability of approximately $2.145 billion of Homekey+ grant funding through this Notice of Funding Availability (NOFA).
Proposition 1, passed by California voters in March 2024, is a critical step in advancing the state’s goals to reduce homelessness and protect our most vulnerable populations through important changes to the Mental Health Services Act (MHSA). Proposition 1 includes the Behavioral Health Services Act (BHSA) and the Behavioral Health Infrastructure Bond Act (BHIBA). Homekey+ is the Permanent Supportive Housing component of the BHIBA.
Homekey+ will support the development of Permanent Supportive Housing for Veterans and individuals with mental health or substance use disorder challenges who are at-risk of or experiencing homelessness. Building on the success of both Roomkey an d
approximately $3.572 billion awarded over three rounds of Homekey, Homekey+ c ontinues a statewide effort to sustain and rapidly expand Permanent Supportive Housing for persons experiencing homelessness.
Like other programs administered by the State of California that serve people experiencing hom
elessness, Homekey+ requires the use of Housing First, which is an evidenced-based model that quickly and successfully connects individuals and families experiencing homelessness to permanent housing without preconditions and barriers to entry or continued tenancy, such as sobriety, treatment or service participation requirements. With safe, affordable housing, and supportive services to address Behavioral Health Challenges, California’s most vulnerable residents will have the foundation they need to thrive.
The Homekey+ funding available in this NOFA is to provide Permanent Supportive Housing for individuals or households with an individual who is Homeless, Chronically Homeless, or At Risk of Homeless, and who are also living with a Behavioral Health Challenge. Homekey+ also establishes allocations for Veterans
Homekey+ Notice of Funding Availability
DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT
DIVISION OF STATE FINANCIAL ASSISTANCE
651 Bannon St, Suite 400
Sacramento, CA 95811
www.hcd.ca.gov
498
November 26, 2024
and for Youth relative to that Target Population. Homekey+ is largely derived from Proposition 1 bond funds established by the BHIBA (AB 531, Chapter 789, Statutes of 2023).
For this NOFA, as detailed in the table below, an estimated $1.033 billion in Proposition 1 bond funds is available for Veteran-serving Projects. Additionally, an estimated $1.11 billion is available for Projects serving the Target Populations, of which $805 million is derived from Proposition 1 and approximately $307 million is available from the Homeless Housing, Assistance, and Prevention (HHAP) Homekey+ Supplemental funding, made available in the 2023-24 and 2024-25 state budgets.
Description of Project Type Funds Available
Veteran-serving projects $1.033 billion
All other Target Population Projects $1.11 billion
Tribal Applicants: Please note that a separate Tribal Homekey+ NOFA of approximately $121 million for tribal applicants is available on the Department’s Tribal Homekey+ Program website.
Homekey+ provides housing to persons with Behavioral Health Challenges. Although Homekey+ largely remains similar to prior Homekey rounds, there are important differences to note. Homekey+ will only fund Permanent Supportive Housing; Interim Housing is no longer an eligible use. Homekey+ Projects are supported by laws that allow for a streamlined, ministerial approval process, provided certain conditions are met. However, it is important to note that these conditions have changed significantly from prior rounds of Homekey, as described in Appendix C. In addition to Appendix C, there are a variety of other development streamlining paths in state law that Applicants may wish to consider, which will be available on the Homekey+ website at the time of application release.
A hallmark of prior rounds of Homekey has been producing housing quickly and cost- effectively, mostly through adaptive reuse. HCD will continue to retain and build upon these principles and will offer funding for Permanent Supportive Housing Projects that incorporate cost-containment strategies in new construction Projects. As with the rest of the Homekey+ NOFA, this new construction cost containment pilot will fund Permanent Supportive Housing only. Homekey+ also introduces new flexibility to fund shovel-ready Projects with prior HCD or other awards in need of gap financing to commence construction. Please see Sections 501 and 502 for the new construction and gap financing requirements.
Homekey+ Projects receiving an Award must complete construction within 12 months, starting 60 days from the date of the Award letter, with the exception of new construction and gap financing Projects, which must complete construction within 24 months, starting 60 days from the date of the Award letter (see NOFA Section 204 for more details on all program deadlines).
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Homekey+ Notice of Funding Availability
November 26, 2024
Appropriate services, as specified in Section 302 “Supportive Services Requirements”, are critical to serving eligible populations in this NOFA. All applicants will need to demonstrate coordination or efforts to coordinate with the county behavioral health department in their community. In addition, Veteran-serving Projects will need to have cultural competency and experience serving Veterans or commit to completing a certification training to gain these competencies.
Lastly, this NOFA prioritizes Projects that commit to sustainable operations. Applicants are encouraged to discuss operating match capacity and local services partnerships during the required pre-application consultation. The NOFA affords HCD the right to prioritize funding for applications that are complete and commit to greater amounts of operational match, regardless of the order of applications received, as outlined in Sections 400-403.
To receive information on the upcoming Homekey+ NOFA webinar and other updates, please click here
subscribe to HCD’s Homelessness Prevention Programs listserv.
If you want to learn more, Please visit HCD’s Homekey+ website at Homekey+ | California
Department of Housing and Community Development R esources such as guidance and templates mentioned within this NOFA will be published to the website with the release of the Homekey+ Application.
If you have any questions, please submit them to [email protected]. 500
Homekey+
2024 Notice of Funding Availability
Gavin Newsom, Governor
State of California
Tomiquia Moss, Secretary
Business, Consumer Services and Housing Agency
Gustavo Velasquez, Director
California Department of Housing and Community Development 651 Bannon St, Suite 400 Sacramento, CA 95811
Website: Homekey+ | California Department of Housing and Community Development Homekey+ Program Email: [email protected]
November 26, 2024
501
Table of Contents
Article I. Program Overview ....................................................................................................... 1 Section 100. Notice of Funding Availability (NOFA) ................................................................ 1 Section 101. Authorizing Legislation and Applicable Law ......................................................... 2 Section 102. Program Timeline ............................................................................................... 4 Article II. Program Requirements ............................................................................................... 5 Section 200. Eligible Applicants............................................................................................... 5 Section 201. Eligible Uses ....................................................................................................... 6 Section 202. Eligible Projects .................................................................................................. 7 Section 203. Allocations and Geographic Distribution ............................................................ 8 Section 204. Program Deadlines ........................................................................................... 11 Section 205. Capital Award and Match .................................................................................. 12 Section 206. Operating Awards and Match ........................................................................... 13 Section 207. Funding Limits .................................................................................................. 16 Section 208. Affordability Covenant ....................................................................................... 17 Article III. Threshold and Scoring Criteria ................................................................................ 18 Section 300. Threshold Requirements ................................................................................... 18 Section 301. Additional Application Materials ....................................................................... 24 Section 302: Supportive Services Requirements .................................................................. 24 Section 303. Single-Family Scattered Site Housing Requirements ....................................... 31 Section 304. Recording, Income and Underwriting Requirements ........................................ 33 Section 305. Scoring Criteria ................................................................................................. 35 Article IV. Application Submission, Review, and Award Process ............................................. 42 Section 400. Application Process and Submission ................................................................ 42 Section 401. Required Pre-Application Consultation and Technical Assistance ................... 44 Section 402. Award Process .................................................................................................. 44 Section 403. Appeals ............................................................................................................ 44 Article V. Additional Program Requirements ............................................................................ 46 Section 500. Veterans Assisted Units ................................................................................... 46 Section 501. New Construction Cost Containment ............................................................... 48 Section 502. Gap Financing .................................................................................................. 49 Section 503. Article XXXIV .................................................................................................... 52 Section 504. Housing First ..................................................................................................... 52 502
Section 505. Tenant Referrals ............................................................................................... 52 Section 506. Participation in the Homeless Management Information System (HMIS) ......... 52 Section 507. Relocation ......................................................................................................... 53 Section 508. Non-Discrimination and Accessibility ................................................................ 53 Section 509. Prevailing Wages .............................................................................................. 54 Section 510. Environmental Clearances ............................................................................... 55 Section 511. Land Use .......................................................................................................... 56 Section 512. State Requirements .......................................................................................... 56 Section 513. Grantee Liability ................................................................................................ 56 Article VI. Project Operations .................................................................................................. 57 Section 600. Project Oversight .............................................................................................. 57 Section 601. Reporting .......................................................................................................... 57 Section 602. Disbursement of Grant Funds ........................................................................... 58 Section 603. Legal Documents .............................................................................................. 59 Section 604. Sales, Transfers, and Encumbrances ............................................................... 59 Section 605. Defaults and Grant Cancellations ...................................................................... 60 Section 606. Insurance Requirements ................................................................................... 60 Article VII. Definitions ............................................................................................................... 63 APPENDIX A: Homekey+ Capital Contributions ...................................................................... 74 APPENDIX B: Homekey+ Organizational Document Requirements ........................................ 75 APPENDIX C: Homekey+ Streamlining ................................................................................... 77 APPENDIX D: Homekey+ Grantee Publicity Guidelines .......................................................... 80
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California Department of Housing and Community Development Page 1 Homekey+ Notice of Funding Availability – November 26, 2024 Homekey +
Notice of Funding Availability
November 2024
Article I. Program Overview
Section 100. Notice of Funding Availability (NOFA)
The California Department of Housing and Community Development (HCD), in collaboration with the California Department of Veterans Affairs (CalVet), is pleased to announce the availability of approximately $2.145 billion in Homekey+ funding. Homekey+ aims to sustain and rapidly expand the inventory of Permanent Supportive Housing (PSH) for Veterans, young people, and other individuals and their households, with mental health and/or substance use disorder challenges who are at-risk of or experiencing homelessness. All units must be reserved for individuals (and their households, if applicable) with a Behavioral Health Challenge regardless of whether they are serving Veterans, Homeless Youth, or other eligible populations under Title 24 CFR 578.3. Behavioral Health Challenge is defined in the California Welfare and Institutions Code Section 5965.02 to include but not be limited to a serious mental illness, as described in subdivision (c) or (d) of Section 14184.402, or a substance use disorder, as described in Section 5891.5. Enrollment in Medi-Cal or in any other health plan shall not be a condition for accessing housing or continuing to be housed.
Please see Article VII of this NOFA under the Behavioral Health Challenge definition for the specific statutory language.
Recent estimates using Point-in-Time Count data from the Terner Center for Housing Innovation show that Black people in California experienced the highest rate of homelessness, about 205 people per 10,000—almost five times higher than the state’s overall homelessness rate of 44 per 10,000. Native Hawaiian and Pacific Islander, Native American and Indigenous, and multiracial people also experienced disparate homelessness rates compared to the state’s overall population. The pandemic made racial disparities even more apparent. California’s homeless population is also aging rapidly, with adults 50+ the fastest growing age group. However, California’s sustained investment in Veterans housing has resulted in significant reductions in the number of Veterans experiencing homelessness. In fact, California had the largest decrease in the country between 2010 and 2022. Homekey+, as with prior Homekey rounds, recognizes these trends and impacts and encourages Applicants to examine disproportionate impacts in their own communities and to develop strategies to address them, particularly for populations experiencing a Behavioral Health Challenge.
Pursuant to Welfare and Institutions Code 8255, Homekey+ Projects are required to follow Housing First, which is an evidence-based model that connects homeless persons to permanent housing without preconditions or barriers to entry and continued tenancy, as outlined in Section 504 of this NOFA.
Homekey+ is an opportunity for Local Public Entities, including state and regional entities, to newly construct PSH, or acquire and convert to PSH a broad range of building types, including but not limited to hotels, motels, hostels, single-family homes and multifamily apartments, and manufactured housing.
504
California Department of Housing and Community Development Page 2 Homekey+ Notice of Funding Availability – November 26, 2024 There is approximately $2.145 billion in Homekey+ funding that is derived from Proposition 1 bond funds established by the Behavioral Health Infrastructure Bond Act (BHIBA) (AB. 531, Chapter 789, Statutes of 2023), and the Homeless Housing Assistance and Prevention (HHAP) program Homekey Supplemental funding, made available in the 2023-24 and 2024- 25 state budgets. For this NOFA, an estimated $1.033 billion in Proposition 1 bond funds are available for Projects for Veterans with a Behavioral Health Challenge. Additionally, an estimated $1.11 billion is available for Projects serving all eligible populations, of which, $805 million is derived from Proposition 1 and approximately $307 million is available from the HHAP Homekey+ Supplemental funding.
Section 101. Authorizing Legislation and Applicable Law
AB 140 (2021-2022 Reg. Sess.) and AB 531 (2023-2024 Reg. Sess.) provide the statutory basis for the Homekey+ Program. AB 140 added Section 50675.1.3 to the Health and Safety Code (HSC). AB 531 added Section 50675.1.5 to the HSC, and it added Chapter 4 (commencing with Section 5965) to Part 7 of Division 5 of the Welfare and Institutions Code.
AB 531 provides for the funding of Permanent Supportive Housing for individuals or households with an individual who is Homeless, Chronically Homeless, or At Risk of Homeless, and who are also living with a Behavioral Health Challenge. AB 531 also establishes allocations for Veterans and for Youth relative to that Target Population. AB 531 provides that such Homekey+ funds shall be disbursed in accordance with Section 50675.1.3 of the HSC, among other laws. AB 531 further provides an exemption pathway for Homekey+ Projects from the California Environmental Quality Act (CEQA). Please see Section 510 and Appendix C for details on this pathway.
HSC section 50675.1.3, subdivision (e) states: “The Department of Housing and Community Development may adopt guidelines for the expenditure of the funds appropriated to HCD, and for the administration of this program. The guidelines shall not be subject to the requirements of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.”
Assembly Bill 129 (Chapter 40, Statutes 2023) and Assembly Bill 166 (Chapter 48, Statutes 2024) established Round 5 and 6, respectively, of the Homeless Housing Assistance Prevention (HHAP). In accordance with HSC Section 50232, subdivision (h), the administration of HHAP 5 funds is not subject to the rulemaking provisions of the Administrative Procedure Act (APA) ((Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code)). In accordance with HSC Section 50239, subdivision (h), the administration of HHAP 6 funds is not subject to the rulemaking provisions of the APA. HCD is utilizing money from HHAP 5 and HHAP 6 to supplement this NOFA. This funding will be awarded to eligible cities, counties, and Tribal Entities pursuing the eligible uses of Homekey+ and meeting the HHAP eligible applicant requirements detailed in Section 200.
This NOFA serves as HCD’s guidelines for the expenditure of Homekey+ funds and the administration of the Homekey+ Program. Under this NOFA, references to “Homekey+” means both the guidelines for Homekey+ funded by Proposition 1 and for HHAP. As such, this NOFA establishes the terms, conditions, forms, procedures, and other mechanisms that HCD deems necessary to exercise its powers and to perform its duties pursuant to the 505
California Department of Housing and Community Development Page 3 Homekey+ Notice of Funding Availability – November 26, 2024 Homekey+ Program. The matters set forth herein are regulatory mandates and are adopted as regulations that have the dignity of statutes. (Ramirez v. Yosemite Water Company, Inc. (1999) 20 Cal. 4th 785, 799 [85 Cal.Rptr.2d 844].)
The Multifamily Housing Program (MHP) (Chapter 6.7 (commencing with Section 50675) of Part 2 of Division 31 of the HSC), and as subsequently amended, is hereby incorporated by reference. In accordance with HSC Section 50675.1.3, subdivision (d), in the event of a conflict between this NOFA and the MHP, the provisions of this NOFA are controlling.
The MHP Final Guidelines (MHP Guidelines), effective May 18, 2023, and as subsequently amended, are hereby incorporated by reference. In the event of a conflict between any of this NOFA and the MHP Guidelines, the provisions of this NOFA are controlling.
California Code of Regulations (CCR) Title 25, Section 42 requires an onsite manager, maintenance, or other responsible person for rental housing of 16 or more units, as specified in Section 302 Supportive Services requirements, of this NOFA.
The following administrative notices, policies, and guidance are hereby incorporated herein by reference and shall be deemed to have the same force and effect as if set forth in full herein:
• HCD’s “Disencumbrance Policy
” (Administrative Notice No. 2022-02), dated March
30, 2022, as amended on December 19, 2022, and as may be subsequently amended;
• HCD’s “Negative Points Policy” (Administrative Notice No. 2022-01), dated March 31, 2022, as amended on November 9, 2022 and April 3, 2023, and as may be subsequently amended;
• HCD’s “Repeal of Stacking Prohibition of Multiple Department Funding Sources” (Administrative Notice No. 21-06), dated August 20, 2021, and as may be subsequently amended, with the exception noted in Section 207 Funding Limits; and • The Program’s “Homekey Appraisal Guidelines” and as may be subsequently amended.
The Uniform Multifamily Regulations
(UMRs) (Cal. Code Regs., tit. 25, § 8300 et seq.),
effective November 15, 2017, and as subsequently amended, are hereby incorporated by reference, except to the extent that any UMR provision would be inconsistent with the provisions of this NOFA.
All other criteria and matters set forth within the NOFA shall also govern Tribal Entity applications submitted under this NOFA, unless and except to the extent expressly provided to the contrary by terms set forth within this NOFA and subject to any potential modification or waiver under or pursuant to Assembly Bill No. 1010 (Chapter 660, Statutes 2019), which is set forth in HSC §50406, subdivision (p).
506
California Department of Housing and Community Development Page 4 Homekey+ Notice of Funding Availability – November 26, 2024 Section 102. Program Timeline
Homekey+ funds will generally be available to Eligible Applicants on a continuous, Over the Counter basis, with exceptions noted in Section 400. The following table summarizes the anticipated Homekey+ program timeline. HCD reserves the right to modify the projected timeline at any time.
Table 1: Anticipated Timeline for Homekey+ Applications
NOFA release November 26, 2024
Stakeholder Webinar January 2025
Application release Late January 2025
Final application due date
For gap financing Projects: March 14, 2025.
For all others, May 30, 2025, or until funds are
exhausted, whichever occurs first.
Award announcements
Continuous, expected to begin June 2025
Standard Agreements
All required documentation is due no later than
45 days from a Conditional Award letter, with SA
execution to occur no later than 90 days from
the date all required documentation is received.
Disbursement of funds
Continuous after Standard Agreement
execution, satisfaction of all conditions
precedent to disbursement, and completion of
a request for funds form.
Homekey+ Annual Report Annually by March 31st, starting after construction completion.
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California Department of Housing and Community Development Page 5 Homekey+ Notice of Funding Availability – November 26, 2024 Article II. Program Requirements
Section 200. Eligible Applicants
Each of the following entities may apply independently, or each entity may apply jointly with a nonprofit or for-profit corporation, a limited liability company (LLC), and/or a limited partnership (LP) as a Co-Applicant. This includes Applicants applying for gap financing. Under California Code of Regulations Title 25, Section 8313.2. HCD permits Co-Applicants to also be Special Purpose Entities (SPEs). A Special Purpose Entity (SPE) is an entity formed to develop, own, and operate a Project while isolating financial risk. The entity's sole asset is the property, and its sole purpose is to own and manage the property or assets. Please see Sections 300 and 301, and Article VII for more information and required SPE documents.
Eligible Applicants include the following, with the exception noted for HHAP in item (iii.):
i. Cities, counties, cities and counties, and all other state, regional, and Local Public Entities, including councils of government, metropolitan planning organizations, Public Housing Authorities, and regional transportation planning agencies designated in Section 29532.1 of the Government Code.
ii. Tribal Entities.
Tribal Entities are eligible under this NOFA but are also encouraged to apply for Homekey+ via a forthcoming Homekey+ Tribal Entity NOFA of approximately $121 million, to be released under separate cover in November 2024 and available on the Department’s Tribal Homekey+ Program website, that will be developed exclusively for and in consultation with Tribes.
The requirements set forth in this NOFA are subject to AB 1010 (Stats. 2019, c. 660), which is set forth in HSC Section 50406, subdivision (p). Accordingly, and pursuant to HSC Section 50406, subdivision (p), (a) where the provisions of Tribal law, Tribal governance, Tribal charter, or difference in Tribal Entity or legal structure would cause a violation or not satisfy the requirements of this NOFA, said requirements may be modified as necessary to ensure program compatibility; and (b) where provisions of Tribal law, Tribal governance, Tribal charter, or difference in Tribal Entity legal structure or agency create minor inconsistencies (as determined by the Director of HCD or a duly authorized designee thereof) with the requirements set forth in this NOFA, HCD may waive said requirements, as deemed necessary, to avoid an unnecessary administrative burden. Matters set forth or otherwise provided for in this NOFA that may be modified or waived include, without limitation, threshold scoring requirements and any other matters set forth in HSC Section 50406, subdivision (p)(2). Tribal Applicants are accordingly encouraged to discuss any such potential modifications or waivers and their options in that regard at the pre-application consultation.
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California Department of Housing and Community Development Page 6 Homekey+ Notice of Funding Availability – November 26, 2024 iii. Pursuant to CA HSC Sections 50237 and 50241, HHAP Homekey+ Supplemental eligible applicants are:
a. California’s 14 largest cities with a population of 300,000 or more as of January 1, 2022.
b. California’s 58 Counties
c. The entities in a. and b. must have:
1. A compliant housing element as defined in Government Code Section 65589.9, at the time a Homekey+ application is submitted; and
2. An approved HHAP regionally coordinated homelessness action plan.
d. Tribal Entities
Section 201. Eligible Uses
Awarded funds must be used to provide housing for the Target Population of individuals or households including a person who is experiencing a Behavioral Health Challenge and experiencing or At Risk of Homelessness. Projects targeting funds allocated for Veterans Projects must provide housing for Veteran households including experiencing a Behavioral Health Challenge and experiencing or At Risk of Homelessness.
Nothing in the Homekey+ NOFA precludes Applicants from pursuing Projects that include both Homekey+ and non-Homekey+ units, however, Homekey+ will only fund the units that meet the guidelines of the Homekey+ NOFA.
Prospective Applicants are further advised that Projects may contain a mix of eligible Homekey+ subpopulations, including Veterans, non-Veterans, Homeless Youth, etc. i. The list of eligible uses is as follows:
a. Acquisition or Rehabilitation, or Acquisition and Rehabilitation, of motels, hotels, hostels, apartments or homes, assisted living residences, manufactured housing, commercial properties, and other buildings with existing uses that could be converted to Permanent Supportive Housing (PSH).
b. Master leasing of properties for PSH.
c. Conversion of units from nonresidential to residential PSH. (i.e. adaptive reuse) and conversion of Interim Housing to PSH.
d. New construction of dwelling units (see Section 501). e. Gap financing (see Section 502).
f. The purchase of affordability covenants and restrictions for units. 509
California Department of Housing and Community Development Page 7 Homekey+ Notice of Funding Availability – November 26, 2024 g. Relocation costs for individuals who are being displaced because of the Homekey+ Project.
h. Capitalized operating subsidies for PSH units purchased, converted, constructed, or altered with funds provided pursuant to HSC Section 50675.1.3.
ii. Ineligible uses include:
a. Interim Housing.
b. Existing Homekey Assisted Units, previously awarded under Rounds 1, 2 and 3 of Homekey, are ineligible for funding under this NOFA, with the exception of the following:
1. Previously funded Homekey Projects that will expand to create new PSH units, or
2. Previously funded Interim to Perm Homekey Assisted Units are eligible for gap financing under Section 502 of this NOFA, if the units are currently occupied and need funding to convert from Interim Housing to PSH.
c. The Homekey+ program is intended to support the development of PSH units and will not fund congregate shelter.
d. Licensed behavioral health care facilities, which may be eligible for Proposition 1 funding through the Department of Health Care Services (DHCS).
Section 202. Eligible Projects
Homekey+ funds Permanent Supportive Housing (PSH) and will require a 55-year affordability term. HCD welcomes and will consider a variety of innovative housing solutions as eligible Projects, including excess state-owned property developments. The following list of eligible Projects is not exhaustive.
i. Conversion of nonresidential structures to residential dwelling units. ii. Conversion of commercially zoned structures, such as office or retail spaces, to residential dwelling units.
iii. Conversion of buildings with existing residential or interim uses that will be used to create PSH units.
iv. Multifamily rental housing Projects.
v. Scattered site housing on multiple contiguous or non-contiguous sites is permitted as long as the resulting housing has common ownership, financing, and property management.
510
California Department of Housing and Community Development Page 8 Homekey+ Notice of Funding Availability – November 26, 2024 vi. PSH units in a shared housing setting. Shared housing is a structure shared by two or more households where each household resides in a separate private bedroom that can be locked and has a lease, with all the rights and responsibilities of tenancy.
vii. Any of the Eligible Projects above, developed in excess state-owned properties.
Section 203. Allocations and Geographic Distribution
Unless otherwise indicated, all NOFA provisions and scoring criteria shall govern the allocations in this NOFA. HCD will deploy unused funds from any undersubscribed allocation and region to fund applications in the manner described in the Discretionary Reserve. HCD will also redeploy undersubscribed and unused funds, as specified at Section 400 of this NOFA. Table 2 shows the funding available in this NOFA by allocation.
Table 2: Homekey+ Funding Allocations
Allocation
(% of appropriation) Veterans General
Population NOFA Total
Youth - 8% $85,200,000 $102,320,000 $187,520,000
Rural - 5% $53,250,000 $63,950,000 $117,200,000
Discretionary Reserve - 10% $106,500,000 $127,900,000 $234,400,000 Available for Regions $788,100,000 $817,586,000 $1,605,686,000 Totals $1,033,050,000 $1,111,756,000 $2,144,806,000
i. Allocations
a. Youth At Risk of or Experiencing Homelessness
Pursuant to HSC Section 50675.1.3, subdivision (c), HCD shall allocate not less than eight percent (8%) of the Homekey+ funding appropriated, for Projects serving Homeless Youth, or Youth at Risk of Homelessness, as defined in 24 Code of Federal Regulations (CFR) part 578.3.
b. Rural Target Allocation
HCD will allocate five percent (5%) of the appropriated Homekey+ funding for Projects in Rural Area jurisdictions as set forth in HSC Section 50199.21.
c. Discretionary Reserve
HCD will allocate ten percent (10%) of available Homekey+ funds for a Discretionary Reserve to address the following:
1. Covering overages from other allocations, where there are funds available, but the funds are insufficient to fully fund the next eligible Project in the region or allocation.
2. Funding high scoring Projects from oversubscribed regions. Awards will not be made until application period closes to the extent funds are available. 511
California Department of Housing and Community Development Page 9 Homekey+ Notice of Funding Availability – November 26, 2024
d. Geographic Distributions
Homekey+ aims to equitably offer opportunities throughout the state for Eligible Applicants to apply to this NOFA. After distributing funds to the Homeless Youth, Rural Target and Discretionary Reserve Allocations, this NOFA allocates the balance of the funds geographically. The Homekey+ geographic regions outlined in Table 3 below are largely aligned with California’s Councils of Government (COGs).
Each region's share of the Homekey+ allocation is calculated based on its proportionate share of Veterans and other persons experiencing homelessness as indicated by the sheltered and unsheltered 2023 Homeless Point-in-Time Count (PIT), plus each region’s proportionate share of Extremely Low Income (ELI) renter households that are paying more than 50 percent of their income for rent (Severely Rent-Burdened), sourcing data from the 2022 American Community Survey (ACS) Integrated Public-use Microdata Sample. In order to most accurately account for need, the regional funding allocations in this NOFA consist of a distribution for Projects serving the general population and a distribution for Veterans. The Veteran PIT and Severely Rent-Burdened figures are deducted from the general population numbers as to not double count Veterans.
Table 3: Homekey+ Geographic Regions
Table 4 shows the regional allocations resulting from deducting the Veterans PIT and Veterans who are Severely Rent-Burdened from the general population Alpine Alameda
Amador Contra Costa Fresno
Butte Marin Kern
Calaveras Napa Kings
Colusa San Francisco Madera
Del Norte San Mateo Merced
Glenn Santa Clara San Joaquin
Humboldt Solano Stanislaus
Inyo Sonoma Tulare
Lake Monterey Imperial
Lassen San Benito Orange
Mariposa San Luis Obispo Riverside
Mendocino Santa Barbara San Bernardino
Modoc Santa Cruz Ventura
Mono
Nevada El Dorado
Plumas Placer
Shasta Sacramento
Sierra Sutter
Siskiyou Yolo
Tehama Yuba
Trinity
Tuolumne
Counties by Region
Balance of
State
Bay Area
San Diego County
San
Joaquin
Valley
Central
Coast
Southern
California
Los Angeles County
Sacramento
County
512
California Department of Housing and Community Development Page 10 Homekey+ Notice of Funding Availability – November 26, 2024 numbers. Table 5 shows the regional allocations for units and Projects serving Veterans. Table 6 below shows the total funding available in this NOFA by regional allocation.
Table 4: Homekey+ Geographic Allocation for General Population *Figures do not include Veterans
Table 5: Homekey+ Geographic Allocation for Veterans
Table 6: Summary of Homekey+ Regional Allocations (Tables 4 and 5) Region Veteran
Allocation
General Population
Allocation Total Allocation
Balance of State $41,923,051 $28,990,773 $70,913,823
Bay Area $141,592,331 $161,667,416 $303,259,747
Central Coast $26,847,679 $33,727,136 $60,574,815
Los Angeles County $277,863,641 $321,433,030 $599,296,672 Sacramento Area $49,438,314 $51,781,757 $101,220,070
San Diego County $91,905,882 $56,293,533 $148,199,415 San Joaquin Valley $53,520,342 $63,635,222 $117,155,564 Southern CA $105,008,761 $100,057,133 $205,065,894
Totals $788,100,000 $817,586,000 $1,605,686,000
Region 2023 PIT Count* Severely Rent-
Burdened* Allocation
Balance of State 7,665 22,714 $28,990,773 Bay Area 34,643 203,285 $161,667,416 Central Coast 7,138 43,253 $33,727,136 Los Angeles County 71,236 381,880 $321,433,030 Sacramento Area 11,455 61,717 $51,781,757 San Diego County 9,450 95,499 $56,293,533 San Joaquin Valley 12,499 90,772 $63,635,222 Southern California 16,247 174,940 $100,057,133 Total 170,333 1,074,060 $817,586,000 Region 2023 Veteran
PIT Count
Severely Rent-
Burdened
Veterans
Veteran
Allocation
Balance of State 582 2,277 $41,923,051 Bay Area 2,013 7,388 $141,592,331 Central Coast 405 1,252 $26,847,679 Los Angeles County 4,282 12,382 $277,863,641 Sacramento Area 752 2,266 $49,438,314 San Diego County 814 7,939 $91,905,882 San Joaquin Valley 606 3,781 $53,520,342 Southern California 1,135 7,763 $105,008,761 Total 10,589 45,048 $788,100,000 513
California Department of Housing and Community Development Page 11 Homekey+ Notice of Funding Availability – November 26, 2024 Section 204. Program Deadlines
Awardees will be subject to the following deadlines, summarized in Table 7. The dates begin 60 days after the Homekey+ Conditional Award letter date to allow time for Standard Agreement execution. If the due date falls on a weekend or holiday, then the due date becomes the next business day after the weekend or holiday. Construction Completion can be proven by a Temporary Certificate of Occupancy, Certificate of Completion, or Contractor scope of work with signed statement of completion.
Occupancy completion is proven by Rent Roll or other forms of verification to prove units are occupied.
Table 7: Program Deadlines*
*Deadlines begin 60 days from date of Award letter and may only change upon HCD approval.
i. New construction and gap financing Projects must break ground within 6 months.
ii. All Eligible Uses in Section 201, except new construction and gap financing, must be completed in 12 months. New construction and gap financing projects must be completed in 24 months.
iii. Capital Expenditure for all Eligible Uses in Section 201, except new construction and gap financing, must be completed within 12 months. Capital Expenditure for new construction and gap financing must be completed within 24 months. Any project type may request an expenditure deadline extension to Occupancy completion.
iv. Full occupancy must be achieved 90 days upon completing construction. For acquisition of new construction projects with no Rehabilitation, occupancy must be achieved within six (6) months of acquisition. HCD reserves the right to recommend special conditions for longer occupancy timeframes for large Projects (over 75 units) up to an additional three (3) months.
v. All Awards for Operating Expenses must be expended within ten (10) years from initial occupancy. HCD may, in its sole and absolute discretion, extend the expenditure deadline up to a total of 15 years.
Eligible Uses Break Ground
(if applicable)
Complete
Construction
Complete
Expenditure
Complete
Occupancy
New Construction
and Gap Financing 6 months 24 months 27 months 27 months All other Eligible
Uses in Section 201 N/A 12 months 15 months 15 months
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California Department of Housing and Community Development Page 12 Homekey+ Notice of Funding Availability – November 26, 2024 HCD may, in its sole and absolute discretion, approve an extension of the acquisition, Rehabilitation, construction, and/or occupancy deadlines if the Grantee demonstrates, to HCD’s satisfaction, that the relevant delay is caused by reasonably unforeseeable events, conditions, or circumstances. Construction labor shortages and supply chain issues do not constitute reasonably unforeseeable events, conditions, or circumstances for purposes of an extension request. Extension requests shall be submitted in electronic format on a form provided by HCD.
HCD may reimburse eligible costs incurred beginning on March 5, 2024, with the exception of operating costs. Applicants are encouraged to discuss their options at the required pre-application consultation.
Section 205. Capital Award and Match
Homekey+ will fund a maximum grant amount per door, pursuant to the conditions of this Section, which includes both the acquisition cost and any needed Rehabilitation or new construction. The Award will be the lower of the following: (1) the maximum grant amount, or (2) the sum of the acquisition amount and any additional construction or Rehabilitation expenses, as supported by an appraisal and such other reasonable documentation required by HCD. For new construction and conversion of office, commercial, or other non-residential structures into residential dwelling units, Homekey+ will fund a maximum grant amount per completed Assisted Unit serving the Target Population, or an amount as supported by an appraisal, whichever is lower. “Assisted Unit,” as defined in Article VII, refers to units that are available to serve the Target Population after the construction or conversion of the property.
For PSH Projects that are not seeking gap funding under Section 502, HCD will contribute a baseline amount of $200,000 per door for each Assisted Unit and Manager’s Unit. This baseline contribution does not require capital match.
Note that Homekey+ will fund “doors” based upon the number of units at the time of acquisition which may differ from the number of units that are available in the final Project. For those Projects that undergo a conversion, the number of doors may need to be reduced in the Project to accommodate kitchenettes, additional bedrooms, space for Supportive Services, and other amenities.
In situations where units at acquisition are combined to make larger Assisted Units, Awards will be calculated according to the number of doors at acquisition. In situations where multi-bedroom (two or more bedrooms) units at acquisition are divided into smaller Assisted Unit sizes, Awards will default to the number of Assisted Units created after the conversion of the property. Manager’s Units may be included in the calculation for the capital Award only.
i. Additional Contribution Amount – Capital Match
Beyond the baseline amount, the Eligible Applicant may leverage a 1:1 local match to provide up to $100,000 in additional funds per door. For example, where the Applicant shows $100,000 or more in matching funds, HCD will fund 515
California Department of Housing and Community Development Page 13 Homekey+ Notice of Funding Availability – November 26, 2024 no more than $300,000 for an Assisted Unit serving the Target Population.
Appendix A shows how maximum funding Awards from Homekey+ vary with different Applicant contribution levels. Capital match may be obtained from any source, including any federal, state, local, private, or philanthropic source.
For the purchase of Affordability Covenants and restrictions, and for master- leasing, HCD may size the Award per door based on a recent market study within the past year which conforms to guidelines adopted by the California Tax Credit Allocation Committee (TCAC), and/or a rent roll, and/or other supporting documentation. For these uses, the maximum Homekey+ contribution per door shall not exceed the maximum amounts referenced in this Section for acquisition, Rehabilitation, and new construction.
For relocation costs, HCD will pay for one-half of the relocation cost per door in addition to the capital Award. For example, if a Project includes $15,000 in relocation costs, then HCD will pay for $7,500 of that relocation cost.
Section 206. Operating Awards and Match
Homekey+ will fund a maximum operating grant amount per door, pursuant to the conditions of this Section:
i. Where an Award for Operating Expenses is requested, the total amount of operating Award per Assisted Unit shall not exceed $1,400 per month for the duration of the operating Award, as described below.
ii. Th e total duration of the operating Award is tied to the amount of the Applicant’s fully committed matching funds. Sources are only considered fully committed when an EFC meets the standard in Article VII demonstrating that a contract or commitment of funds is guaranteed at the time of application. a. If Projects can demonstrate a commitment of three years of non- Homekey+ operating funds for Assisted Units, HCD will provide an operating Award sized for up to three years.
b. If Projects can demonstrate a commitment of four years of non-Homekey+ operating funds for Assisted Units, HCD will provide an operating Award sized for up to four years.
c. If Projects can demonstrate a commitment of five or more years of non- Homekey+ operating funds for Assisted Units, HCD will provide an operating Award sized for up to five years.
iii. Operating Awards are determined based on need, exclusive of items referenced in subsection (v). The amounts and durations referenced in (i) and (ii) represent maximums. To be eligible to receive an operating Award based on need, the Applicant must submit documentation showing that additional sources of operating funding were sought but were unavailable to support Project operations. The Applicant must demonstrate that they:
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California Department of Housing and Community Development Page 14 Homekey+ Notice of Funding Availability – November 26, 2024 a. Identified all possible federal, state, and local sources of rental assistance and other operating assistance to support operating the Assisted Units; and
b. Submitted unfunded applications or other written requests to the appropriate entity to secure Project-based rental or other operating assistance to support operating the Assisted Units; or
c. Can provide other evidence from the appropriate entities that rental assistance and other operating assistance is not available to support operating the Assisted Units.
d. Applicants must also commit to continuing to seek operating funding in future years as funding becomes available. Applicants are encouraged to collaborate with their county behavioral health department to secure housing intervention services funded by the Behavioral Health Services Act, which becomes available in July 2026.
iv. Awards for Operating Expenses may pay for a Project’s necessary, recurring Operating Expenses in an amount approved by HCD. Operating Expenses should be included in the Project’s submitted budget. Qualifying expenses can include a variety of expenses such as utilities, maintenance, management fees, taxes, licenses, and Supportive Services costs.
v. Awards for Operating Expenses shall not pay for the following expenses:
a. Costs associated with non-Assisted Units, including Manager’s Units.
b. Debt service.
c. UMR-required reserve account initial and/or annual deposits.
d. Deposits to reserves beyond those required by HCD under the UMRs, including reserves required by other Project financing sources.
e. Distributions.
f. Developer fees.
g. Under no circumstances may Homekey+ operating funds be used for or in connection with a limited partner buyout, substitution, or assignment of ownership interest.
vi. The Homekey+ funded portion of the Award for Operating Expenses must be expended no later than ten (10) years from initial occupancy as per Section 204, with the Grantee establishing a capitalized operating subsidy reserve (COSR) and expending the eligible Operating Expenses, as outlined in this
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California Department of Housing and Community Development Page 15 Homekey+ Notice of Funding Availability – November 26, 2024 NOFA. HCD has the sole right to extend the expenditure deadline up to a total of 15 years. The deposit of the Homekey+ Award for Operating Expenses into the COSR does not count as expended.
vii. Eligible Applicants are required to demonstrate a minimum three (3)-year commitment to provide operating funds for the proposed Project to qualify for the Homekey+ Award for Operating Expenses. As noted in (ii.), additional local match may result in additional Homekey+ funding, for a period up to five (5) years. Eligible Applicants may include funds from the Homekey+ Award for Operating Expenses in the Project budget for up to ten years from occupancy, as described in (vi.). Non-Homekey+ sources may be obtained from any source, including any federal, state, local, private, or philanthropic source. Applicants are encouraged to consider:
a. HUD funded Project-based Vouchers (PBV), Housing Choice Vouchers (HCV), and Veterans Affairs Supportive Housing (HUD-VASH) Vouchers; b. Mainstream Vouchers;
c. Foster Youth to Independence Vouchers (FYI);
d. Faircloth to Rental Assistance Demonstration (RAD) conversions; e. Homeless Housing Assistance and Prevention Program (HHAP) funding; f. Permanent Local Housing Allocation (PLHA) funding;
g. Transitional Housing Program (THP) or Transitional Housing Program Plus (THP-Plus) funding;
h. Mental Health Services Act (MHSA) funding;
i. Behavioral Health Services Act (BHSA) funding; and
j. HOME-ARP funding.
The preceding list of potential match sources is not exhaustive. Operating match requirements and the Project’s potential match sources will be discussed during the required pre-application consultation.
Additionally, the following requirements apply to operating match contributions:
viii. The Eligible Applicant must ensure the laws governing any funds to be used as matching contributions do not prohibit those funds from being used to match Homekey+ funds; and
ix. If State General Funds are used to satisfy the matching requirements of another program, then funding from that program may not be used to fulfill the matching requirements of the Homekey+ program.
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California Department of Housing and Community Development Page 16 Homekey+ Notice of Funding Availability – November 26, 2024 Section 207. Funding Limits
i. In addition to the funding limits described throughout this NOFA, Homekey+ will implement additional funding limits as follows:
a. Any Co-A pplicant that is not an Eligible Applicant will be limited to a maximum of four (4) Homekey+ Awards. At the sole discretion of the Director of HCD or the Director’s designee, requests for an exemption to this limit may be approved based on factors including, but not limited to, CalVet consultation as applicable, Co-Applicant capacity and Co-Applicant performance on prior HCD awards.
b. Per Project Funding Limit:
1. S ingle Family Scattered-Site Projects shall be limited to $10 million total per Project, as detailed in Section 303.
2. For other Projects, exclusive of gap financing projects described in Section 502, no more than $35 million in total HCD sources may be used per Project.
The Project funding limits applies to Homekey+ capital and operating funds, and to all HCD sources of permanent loans for onsite development costs and operating costs. Grants from other HCD programs are excluded from this per Project funding limit.
At the sole discretion of the Director of HCD or the Director’s designee, with CalVet consultation as applicable, per Project funding limit requests in excess of $10 million for Single Family Scattered Site Projects and $35 million for all other Projects, may be approved as an exemption to the Project funding limits, if the Project uniquely advances state policy priorities, is high scoring, is located in high or highest resource areas as identified in the 2023 Opportunity Maps – Adopted January 2023, and/or is located in a high-cost region. Applicants asserting the Project is in a high-cost area shall provide data from HUD, the United States Census Bureau, or another authoritative source to validate the assertion. All exemption requests shall not exceed ten percent (10%) above the per Project funding limit.
To request an exemption to the limits in 1 and 2, Applicants must submit justification at the time of application. The justification will be reviewed with the application package in accordance with Section 400. A form to request an exemption will be available on the Homekey+ website when the Homekey+ application is released.
ii. HCD’s Repeal of Stacking Prohibition of Multiple Department Funding Sources
memo ( Administrative Notice Number: 21-06), dated August 20, 2021, is hereby incorporated by this reference as if set forth in full herein, and it shall be applicable. Applicants must ensure that all HCD funding sources in the Project 519
California Department of Housing and Community Development Page 17 Homekey+ Notice of Funding Availability – November 26, 2024 are represented pursuant to the memo. Homekey+ Awards shall not be layered with other HCD funding sources in a manner that causes either the per unit or total Project funding to exceed the total development cost. a. Projects applying under gap financing Section 502, are excluded from the limits within the memo.
Section 208. Affordability Covenant
The Grantee shall duly encumber all Projects with a 55-year Affordability Covenant for Permanent Supportive Housing that (a) is recorded in first position against the Project real property for the benefit of the state, regional, local, or tribal Grantee, (b) restricts the use, operation, occupancy, and affordability of the Project in accordance with all applicable requirements of this NOFA and all other Homekey+ Program Requirements, (c) duly names HCD as a third-party beneficiary with the right and privilege, but not the obligation, of enforcement thereof, (d) incorporates the Homekey+ Program Requirements by reference, and (e) is otherwise in form and substance acceptable to HCD.
No exceptions will be made to the requirement to record the Affordability Covenant in first position.
The Affordability Covenant must be approved by HCD prior to disbursement and recorded as part of the escrow transaction. Upon its execution, the Affordability Covenant shall be binding, effective, and enforceable against all successors, transferees, and assignees, and it shall continue in full force and effect for a period of not less than 55 years after a certificate of occupancy or its equivalent has been issued for the Project, or if no such certificate is issued, from the date of initial occupancy of the Project.
Permanent Supportive Housing Projects located on Tribal trust land shall be duly encumbered with an Affordability Covenant containing all of the terms listed above excepting that they shall have an initial term of 50 years to match the period of affordability restrictions under the Low-Income Housing Tax Credit (LIHTC) program, commencing with the date of recordation of HCD’s Affordability Covenant. Prospective applicants are advised to also review the Tribal Entity Homekey+ NOFA for Tribal applicants, which may have different requirements.
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California Department of Housing and Community Development Page 18 Homekey+ Notice of Funding Availability – November 26, 2024 Article III. Threshold and Scoring Criteria
Section 300. Threshold Requirements
To be eligible to receive Homekey+ funding, all applications must meet the threshold requirements of this Section. HCD reserves the right to request clarification of unclear or ambiguous statements made in an application and other supporting documents. i. Applications may be submitted independently by an Eligible Applicant, as defined in Section 200 and Article VII. Alternatively, each Eligible Applicant may apply jointly with a Co-Applicant, as specified. No additions of Co- Applicants or special purpose entities will be considered subsequent to the date of application, including after Standard Agreement execution. ii. Projects must serve persons qualifying or households that include persons qualifying as members of the Target Population.
iii. Applicants must submit a completed application workbook with all worksheets, documents and supplemental information.
iv. Applications must include a Project-specific Supportive Services Plan, that shall be consistent with any representations made in the application, and it shall meet the Homekey+ Program Requirements noted in NOFA Section 302.
v. Project Ownership Structure submitted with the application workbook that demonstrates the relationship of the Applicants, Co-applicants, and Project entities within the ownership structure.
vi. Required documents from each Eligible Applicant and Co-Applicant as applicable, including but not limited to:
a. A duly executed resolution authorizing the entity to apply for funds and to participate in the Homekey+ Program in connection with each discrete Project; attested to by a person other that the person identified as the authorized signatory. If there is more than one authorized signatory identified, state whether one or all signatories are required to submit and execute program documents. If the application is being signed by a designee of the authorized signatory, the Applicant must also submit a designee letter or other proof of signing authority. The resolutions should materially comport with the Homekey+ resolution templates that will be available on the Homekey+ website
when the application is released.
b. Organizational documents supporting the resolutions submitted with the application. Eligible Applicants are exempted from this requirement.
Notwithstanding the foregoing, HCD reserves the right to request additional documentation at any point to verify any entity’s authority and/or organizational structure. For a complete list of organizational documents, refer to Appendix B.
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California Department of Housing and Community Development Page 19 Homekey+ Notice of Funding Availability – November 26, 2024 vii. Applicants shall provide a written non-discrimination policy that complies with the requirements in Section 508.
viii. Applications shall provide a statement how the Project will address equity that must answer the following question: What specific actions will the Applicant take to ensure equitable access to housing and services for groups that are overrepresented among residents experiencing homelessness in its jurisdiction and region? Examples of what applicants should consider include race, ethnicity, age (e.g. youth, elderly), disability status, LGBTQ+ status, etc.
The response shall reference the latest Continuum of Care (CoC) Homelessness Management Information System (HMIS) demographics data to explain. Please see the Homekey+ website
for the template at the time of
Application release.
ix. Applications shall provide a statement how the Project will engage the Target Population that must answer the following question: How did/will the Applicant engage with the Target Population to inform the design of the Project operations and Supportive Services? Please see Homekey+ website
for guidance
documents at the time of Application release.
x. The Applicant shall have site control of the property at the time of application, and such control shall not be contingent on the approval of any other party. The status and nature of the Applicant's title and interest in the property shall be subject to HCD's approval. Site control may be evidenced by one of the following:
a. Fee title, evidenced by a current title report dated within 90 days of application submission showing the Applicant holds fee title, or for Tribal trust land, a title status report (TSR) or an attorney’s opinion regarding chain of title and current title status.
b. A leasehold interest on the property with provisions that enable the lessee to make improvements on and encumber the property provided that the terms and conditions of any proposed lease shall permit compliance with all Homekey+ Program Requirements.
c. A leasehold estate held by a Tribal Entity in federal Tribal trust lands property, or a valid sublease thereof that has been or will be approved by the Bureau of Indian Affairs.
d. An executed disposition and development agreement, or irrevocable offer of dedication to a public agency.
e. A fully executed sales contract, or other enforceable agreement for the acquisition of the property.
f. A letter of intent, executed by a sufficiently authorized signatory of the Eligible Applicant, that expressly represents to HCD, without condition or reservation, that, upon successful application, the Eligible Applicant shall purchase or otherwise acquire a sufficient legal interest in the property to 522
California Department of Housing and Community Development Page 20 Homekey+ Notice of Funding Availability – November 26, 2024 accomplish the purpose of the award. The letter of intent must also be acknowledged by the party selling or otherwise conveying an interest in the subject property to the Eligible Applicant.
If this form of evidence is relied upon at the time of application, HCD may impose additional milestones, in the Standard Agreement, regarding increased evidence of eventual site control closer to the likely close of escrow.
g. Other forms of site control that give HCD assurance (equivalent to items a. through f. above) that the Applicant will be able to complete the Project in a timely manner and in accordance with all the Program's objectives and requirements. h. For Applicants proposing sites that will require a use change, lot split or other local approvals for Permanent Supportive Housing, include a commitment and plan to facilitate or expedite those processes, to not delay expenditure and occupancy requirements.
xi. A pplicants shall provide a preliminary title report for each site, dated within 90 days of application submission.
xii. A pplicants shall provide a detailed development plan that supports acquisition of a site, completion of Rehabilitation or construction, occupancy, and fund expenditure before all program deadlines, factoring in entitlements, permits, procurement, potential construction delays and supply chain issues, and demonstrates evidence of strong organizational and financial capacity to develop the Project. Please see Homekey+ website
for guidance at the time of
application release.
xiii. A pplicants shall provide an appraisal prepared no earlier than 12 months prior to application submission date for all Projects seeking acquisition funds from Homekey+ or if property value will be used as local match. The appraisal must comply with the Homekey+ requirements outlined in the Homekey+ Appraisal Guidance document, which will be available on the Homekey+ website .
xiv. All Projects seeking funding for Rehabilitation must submit the following:
a. Rehabilitation narrative of current condition of structure(s) and overall scope of work; and
b. Physical Needs Assessment (PNA) or equivalent prepared by a qualified independent third-party contractor and dated within 12 months prior to application submission.
xv. For Projects seeking funding for master leasing and purchase of Affordability Covenants, Applicant shall provide a market study prepared no earlier than 12 months prior to application submission which conforms to TCAC guidelines, and/or a rent roll, and/or other supporting documentation.
xvi. All Projects seeking funding for Rehabilitation and new construction are 523
California Department of Housing and Community Development Page 21 Homekey+ Notice of Funding Availability – November 26, 2024 required to submit a Phase I Environmental Site Assessment (ESA) which was prepared or updated no earlier than 12 months prior to application submission. xvii. Relocation Assistance Narrative. Applicant shall submit a concise, sufficiently detailed narrative to demonstrate its consideration of, and early engagement with, applicable relocation assistance laws and requirements. An Applicant’s unsupported conclusion that relocation law does not apply or that the Project Site is vacant does not sufficiently demonstrate such consideration and engagement. The Applicant must support any representation that relocation law does not apply or that the Project Site is vacant by including either an explanation that supports this representation or supporting documentation that establishes that the property is vacant. This Relocation Assistance Narrative will be evaluated by HCD to determine whether a relocation plan is required by law or whether a certificate of no-relocation can be issued. The Relocation Assistance Narrative does not take the place of these two documents. Grantee shall submit either a relocation plan or a certificate of no-relocation as a condition of disbursement. See Section 507 and Homekey+ website for more
information and template, which will be uploaded when the application is released.
Applicant’s Relocation Assistance Narrative shall include or identify the following:
a. A diagrammatic sketch of the Project site that illustrates the boundaries of the Project Site and all existing improvements thereon.
b. Clear, recent, high-resolution photographs of the Project site and all improvements thereon (e.g., exterior and interior photos of the buildings, parking lots, billboards).
c. The Projected dates of any Homekey+-funded acquisition, construction, Rehabilitation, demolition, or similar development activities at the Project site.
d. A description of any persons, businesses, or farm operations that will or may be displaced from the Project site by the foregoing development activities.
Applicant shall specify whether any such displacement will be permanent or temporary.
1. If no such displacement will occur, Applicant shall conclude the narrative by expressly confirming that Applicant’s eligible use(s) of the funds will not result in the displacement of any persons, businesses, or farm operations from the Project site.
2. If such displacement will occur, Applicant shall further develop the narrative by including the additional elements set forth at (e) – (i) below.
e. A description and evidence of attempts made to maintain the tenure of 524
California Department of Housing and Community Development Page 22 Homekey+ Notice of Funding Availability – November 26, 2024 existing residents that may qualify under the criteria for the Target Population.
f. A description of the aggregate relocation needs of the persons, businesses, or farm operations that will or may be displaced by the Homekey+ funded activities.
g. A brief description of how those relocation needs will be met, as well as the Applicant’s projected timeline for fully meeting those needs, including the dates of planned notices to displaced persons, businesses, or farm operations.
h. An identification of the Applicant’s relocation consultant and/or relocation services provider in connection with the Project site. Applicant shall also submit legible copies of its contract or letter of intent with or to the relocation consultant and/or relocation services provider.
i. Applicant’s cost estimate (and associated funding strategy) for providing relocation assistance and benefits to the persons, businesses, or farm operations that will or may be displaced by the Homekey-funded activities.
xviii. Enforceable Funding Commitments (EFCs) as defined by Article VII (xvii) for:
a. Development costs with specific funding sources, including federal, state, local, private, or philanthropic sources for the proposed Project.
b. R ental subsidies, operations, and service costs with specific funding sources, including federal, state, local, private, or philanthropic sources for ongoing sustainability. For projects applying for a program operating Award (see Section 206) EFCs must be fully committed to match the numbers of years of the operating award. Please see Section 305(3)(a) for potential points and the Homekey+ website
for EFC templates, which will be posted at
the time of application release.
xix. The Eligible Applicant or Co-Applicant applying for Homekey+ funding is the entity that HCD relies upon for experience and capacity, and will control the Project during acquisition, development, and occupancy. The Eligible Applicant or Co- Applicant shall demonstrate the following minimum experience and capacity requirements:
a. Development, ownership, or operation of a Project similar in scope and size to the proposed Project; or development, ownership, or operation of at least two affordable rental housing Projects in the last 10 years, with at least one of those Projects containing at least one unit housing a tenant who qualifies as a member of the Target Population.
b. The property manager and LSP shall have three or more years of experience serving persons of the Target Population. If a property 525
California Department of Housing and Community Development Page 23 Homekey+ Notice of Funding Availability – November 26, 2024 manager or LSP is not yet selected for the proposed Project, the Eligible Applicant shall certify that this requirement will be reflected in any future solicitation or memorandum of understanding.
c. Statement confirming experience administering a Project in accordance with the core components of Housing First (Welfare and Institutions Code Section 8255).
d. Current capacity to develop, own, and operate the proposed Project. For purposes of satisfying this requirement, an Applicant has “capacity” if it has adequate staff, capital, assets, and other resources to efficiently meet the operational needs of the Project; to maintain the fiscal integrity of the Project; and to satisfy all legal requirements and obligations in connection with the Project. Evidence of Permanent Supportive Housing experience and capacity must be reasonably acceptable to HCD in form and substance.
xx. The Eligible Applicant and all Co-Applicants shall attend a pre-application consultation with HCD prior to applying, as required in Section 401.
xxi. One-for-one replacement of assisted housing:
a. If the acquired housing or site is to be redeveloped/repositioned as part of the Local Public Entity's overall goal to address the needs of the Target Population and the community, the Applicant shall provide as part of the application a commitment to ensure one-for-one replacement of units. b. If acquired units will be subsequently combined to add kitchens, create larger units, and/or create units with additional bedrooms, the Applicant will provide such information in the application and ensure an approximate equivalence of square footage available for the benefit of Project residents.
c. If the acquired site is going to be demolished before any occupancy by the Target Population, no one-for-one replacement commitment needs to be provided. The unit mix will be evaluated based on the Project proposal.
d. The application shall include a site map indicating the original acquired housing location and all proposed housing location(s). If all proposed housing will be located within the neighborhood, no additional documentation is necessary.
e. If replacement housing is proposed outside the neighborhood of the acquired site, the application must also include a justification explaining why it is necessary to locate this replacement housing outside the neighborhood of the acquired site (i.e., offsite) and how doing so supports 526
California Department of Housing and Community Development Page 24 Homekey+ Notice of Funding Availability – November 26, 2024 and enables the Target Population to maintain housing.
Section 301. Additional Application Materials
In addition to requirements detailed in Section 300, to be eligible for Homekey+ funding, an application shall demonstrate to HCD the following:
i. Applicants and Co-Applicants must be in good standing with the State of California and all agencies and departments thereof. By way of example and not limitation, an Applicant and Co-Applicant must be qualified to do business in the State of California and must be in good standing with the California Secretary of State and the California Franchise Tax Board.
Applicants that are delinquent in meeting the material requirements of previous HCD Awards may, in HCD’s reasonable discretion, fail threshold review. A Certificate of Good Standing, dated within 30 days of application due date, must be submitted with the application.
ii. Completed Certification and Legal Disclosure Statement iii. Signature Block for all Applicants entities in Word Format iv. Payee Data Record STD204 (except for Eligible Applicants) v. Taxpayer Identification Number (FI$Cal TIN Form)
vi. EIN Verification (IRS form SS-4) (except for Jurisdictions) vii. Tax-Exempt State from IRS or FTB (if applicable)
viii. CEQA Determination (if applicable)
ix. NEPA Authority to Use Grant Funds (if applicable)
x. Phase 2 Environmental Report if needed as stated in Phase I ESA report (if Applicable)
xi.
A letter from the local county behavioral health department describing the support for the Project (capital, operating or service commitments, referrals, stakeholder collaboration, etc.). If the letter can't be secured, Applicant must describe efforts to obtain the letter.
Section 302: Supportive Services Requirements
To be eligible to receive funding, all applications must include a Project-specific Supportive Services plan, that shall be consistent with any representations made in the application, and it shall meet the Homekey+ Program Requirements. HCD in its sole discretion shall make the determination (1) if the Supportive Services plan is sufficiently complete to pass threshold and (2) if the Supportive Services plan and property management plan is compliant with Housing First and other evidence-based practices for each unique Target Population served by the Project. For example, 527
California Department of Housing and Community Development Page 25 Homekey+ Notice of Funding Availability – November 26, 2024 Projects serving Veterans must incorporate evidence-based practices specific to Veterans. Applications must include:
i. A description of the Supportive Services to be offered, how frequently each service will be offered or provided depending on the nature of the service, who is anticipated to be providing the services, and the location, whether on or off-site, and general hours of availability of the Supportive Services.
Applicants must ensure that the Supportive Services are made available to Homekey+ tenants in a manner that is voluntary, flexible, and individualized, so Homekey+ tenants may continue to engage with Supportive Services providers, even as the intensity of services needed may change. Furthermore, access to or continued occupancy in housing cannot be conditioned on participation in Supportive Services or on sobriety. Adaptability in the level of services should support tenant engagement and housing retention.
Behavioral health treatment services co-located onsite of Homekey+ Project sites are allowable however, tenants in Homekey+ funded housing cannot be mandated to receive behavioral health services as a condition of housing, pursuant to Housing First.
a. The following Supportive Services shall be made available to Homekey+ tenants based on tenant need. The lead service provider for the Project shall coordinate the provision of, referral, or linkage to services needed by individual tenants. The following required services must be provided onsite at the Project or offsite at another location easily accessible to tenants. Easily accessible to tenants means access does not require walking more than one-half mile and shall include a plan and budget for transportation to off-site Supportive Services where tenants are not able to walk less than one-half mile:
1. A Lead Service Provider (LSP) meeting the experience requirements described in Section 302(c) of this NOFA should be selected prior to application submittal. If the LSP has been selected, a formal commitment must be established and maintained between the Applicant and the LSP. The commitment may be a commitment letter(s) or MOU, and must detail roles and responsibilities of all parties and must be consistent with organizational charts and the property management plan detailed in Section 302(ii). If the LSP has not been selected at the time of application submittal, the commitment must be submitted to the Department prior to Standard Agreement execution. If the LSP and Applicant are the same organization, the Applicant shall provide a document signed by an authorized signatory defining roles and responsibilities in implementing all elements of the Supportive Services plan.
Designated Supportive Services staff shall not also be property management staff. HCD may request additional information to further demonstrate the distinction between roles (see Section 305 for potential points). In the event of a change to the LSP, the Applicant or Grantee shall provide the new formal commitment to the Department no later than 30 days after the date that the new LSP 528
California Department of Housing and Community Development Page 26 Homekey+ Notice of Funding Availability – November 26, 2024 commits Supportive Services to the Project.
2. Case management performed by a Case Manager, as defined in Article VII. Definitions. For Projects with Assisted Units serving Target Populations that require intensive services, specifically including high acuity Homeless and Chronically Homeless populations, services to be provided must include at a minimum, on- site comprehensive case management as well as on or off-site mental health care, physical health care and substance use services.
Where one or more of the Restricted Units are limited under HCD Regulatory Agreements to occupancy, comprehensive case
management shall be provided with staffing at ratios of full-time Case Managers directly providing services to tenants, as indicated below in Table 8.
Table 8: Required Caseload Ratios
Population Minimum Ratio
Homeless Youth, or Youth at Risk of
Homelessness 1:15
Chronic Homelessness 1:20
Disability Homelessness 1:25
3. Peer support activities, including 24/7 telephone, online, or in- person support.
4. Mental health care, including but not limited to assessment, crisis counseling, individual and group therapy, and peer support groups.
5. Substance use services, including but not limited to treatment, relapse prevention, and peer support groups. NOTE: Co-locating outpatient behavioral health treatment services onsite of Homekey+ Project sites are potentially allowable however, tenants in Homekey+ funded housing cannot be mandated to receive behavioral health services as a condition of housing, pursuant to Housing First. Additionally, these outpatient services should be available to individuals outside of Homekey+ housing to prevent creating unlicensed residential Mental Health or Substance Use Disorder treatment programs.
6. Support in linking to physical health care, including but not limited to access to routine and preventive health and dental care, medication management and medication assisted treatment, and wellness services.
7. Benefits counseling and advocacy, including but not limited to assistance in accessing and maintaining SSI/SSD, enrolling in and maintaining Medi-Cal and CalFresh;
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8. Veteran serving projects shall coordinate, or make efforts to coordinate, with the applicable County Veteran Service Officer for benefits counseling and advocacy
9. Basic housing retention skills (including but not limited to unit maintenance and upkeep, identifying safety concerns in the unit, understanding lease terms, and money management).
10. Supportive Services for persons with co-occurring mental and physical disabilities or co-occurring mental and substance use disorders not listed above.
11. Recreational and social activities, including peer-led groups and events.
12. Educational services, including assessment, GED, school enrollment, assistance accessing higher education benefits and grants, and assistance in obtaining reasonable accommodations in the education process.
13. Employment services, such as supported employment, job readiness, job skills training, job placement, and retention services, or programs promoting volunteer opportunities for those unable to work, and
14. Obtaining reasonable access to other needed services, such as legal services, or access to food and clothing.
15. Projects serving 16 or more units in a single site must include an onsite manager, maintenance, or other responsible person, as required by California law 25 CCR §42. Applicants seeking an exemption from this requirement must demonstrate that they will provide an equivalent number of desk or security staff, who are not tenants, capable of responding to emergencies for the hours when property management staff is not working.
16. Physical health care, including but not limited to access to routine and preventative health and dental care.
17. Potential out-placements, should they become appropriate alternatives for current Homekey+ residents, either because a higher level of care is required (i.e., residential treatment facilities and hospitals), or because Permanent Supportive Housing is no longer required (i.e., other affordable housing or market rate housing).
18. Representative payee.
19. Legal assistance.
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20. Attendant care.
21. Adult day care.
22. Parenting education, childcare, and family legal and counseling services including, but not limited to, family reunification.
23. Financial counseling, and
24. Domestic violence support, including but not limited to access to temporary shelter, family and individual counseling, and legal support.
b. Applicants shall provide and maintain written policies and procedures covering:
1. Payment of rent by residents during periods of hospitalization.
2. Coordination with property management for resolution of complaints from tenants or on behalf of tenants.
3. Use of best practices in service delivery for each unique Target Population served by the Project, including but not limited to critical time intervention; trauma-informed care and de-escalation; motivational interviewing; peer support; case conferencing; and providing care in a culturally competent manner.
i. Supportive Services for Youth Assisted Units must also include a Positive Youth Development (PYD)
model and trauma-informed care. Services may include, but are not limited to, case management, income supports,
educational and employment counseling, life skills, legal assistance, health and wellness, and family connection
services.
Youth Assisted Units occupied by a tenant over age 25 shall be replaced with a comparable unit in the same Project, if available. When a tenant older than 25 moves out of a unit restricted for Youth, the Youth Assisted Unit shall go back to serving Homeless Youth.
4. Initial and ongoing staff training in all of the above, and in the operator’s program philosophy, values, and principles.
5. Description of each unique Target Population to be served by the Project, and identification of any additional subpopulation target or occupancy preference for the Homekey+ Project that the Applicant wishes to undertake beyond what is permitted under the Target Population requirements.
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c. The property manager and LSP shall have three or more years of experience serving persons of each unique Target Population of people with Behavioral Health Challenges. If a property manager or LSP is not yet selected for the proposed Project, the Eligible Applicant shall certify that this requirement will be reflected in any future solicitation or memorandum of understanding (MOU) (see Section 305 for points awarded). If the property management and/or LSP has three or more years serving persons experiencing homelessness, but not Veterans experiencing homelessness, HCD in its sole discretion may deem the property manager and/or LSP to have met this requirement, provided the property manager and/or LSP agrees to completing a training provided by CalVet.
Projects with Youth Assisted Units must jointly apply and/or partner with a nonprofit corporation(s), including community-based organization(s), with at least three years of experience serving current or former Foster Youth, Homeless Youth, or Youth at Risk of Homelessness.
d. A tenant engagement plan (i.e., plan to encourage voluntary tenant participation in services as well as in community building, such as resident councils or similar forums) including a description of tenant outreach, engagement and stability strategies to be used. A tenant satisfaction survey shall be conducted at least annually to inform and improve services, building operations, and property management. Applicant shall make tenants aware of when summary of survey data will be prepared and shall share the results with tenants.
e. A description of plans and measures to ensure the safety and security of residents and staff (e.g., guest and visitor policies, policies on the violation of safety rules, staff training, and building design features intended to promote security);
f. For Supportive Services provided offsite, the plan must describe what public or private transportation options will be offered to tenants in order to provide them reasonable access to these services. Reasonable access is access that does not require walking more than one-half mile. Reasonable access shall include a plan and budget for transportation to off-site Supportive Services where tenants are not able to walk less than one-half mile.
g. Description of how the Supportive Services will be culturally and linguistically competent for persons of different races, ethnicities, sexual orientations, gender identities, gender expressions, age, and disabilities. This includes explaining how services will be provided to Homekey+ tenants who do not speak English, or have other communication barriers, including sensory and/or cognitive disabilities, and how communication among the LSP, the property manager and these tenants will be facilitated. The services need to include reasonable accommodation and auxiliary aids and services for effective communications.
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California Department of Housing and Community Development Page 30 Homekey+ Notice of Funding Availability – November 26, 2024 h. A staffing plan with staffing levels sufficient to meet the needs of each unique Target Population served by the Project and in accordance with section 302(ii)(a)(1).
i. Estimated itemized budget, and sources of funding for Supportive Services.
j. Identification of outcome measures to be tracked, description of the data to be collected for each measure, and explanation of the methods for data collection and entry. Sample forms may be requested by HCD.
k. Other information and documentation needed by HCD to evaluate credentials of the proposed LSP and the Supportive Services to be offered for consistency with the Program.
l. HCD may request necessary updates to the Supportive Services plan or related documents, including fully executed written agreements. All updates must be approved prior to occupancy as determined by milestones listed in the Standard Agreement. Grantees who fail to provide all requested updates by Standard Agreement Execution shall be subject to withholding a portion of the Homekey+ Award until the Supportive Services plan is approved by HCD.
ii. Property management and tenant selection policies submitted with the Homekey+ application will be evaluated for the following, consistent with state Housing First requirements and any other state and federal fair housing laws as applicable. These documents must identify and describe alignment with Housing First tenant screening, selection, and other practices consistent with Welfare and Institutions Code Section 8255(b). The descriptions of the use of Housing First and tenant selection in this Supportive Services plan shall be consistent with the property management and tenant selection policies. Applicants should review Assembly Bill No. 1991 (Chapter 645, Statutes of 2022) to inform the Project’s property management and tenant selection policies. The property management and tenant selection policies should address the following and be consistent with state Housing First requirements, as well as other Homekey+ Program Requirements:
a. Applicant eligibility and screening standards including identification of any and all roles in screening activities, including third-parties, and a clear description of those roles. This should include the process for verifying tenants have a Behavioral Health Challenge or suspected Behavioral Health Challenge. Verification can be from county behavioral health staff, qualified supportive service staff, etc.
b. Confidentiality.
c. Substance misuse policy.
d. Compliance with harm reduction principles.
e. Communication between property manager and LSP staff, as well as the 533
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f. Eviction policies and eviction prevention procedures, including how property management and LSP staff will work together to prevent evictions.
g. Process for assisting tenants to apply for different forms of cash and non-cash benefits to aid the household in retaining their housing, if needed.
h. How potential tenants and in-place tenants will be assisted in making reasonable accommodation requests, in coordination with the LSP and persuasive to outside entities, such as Housing Authorities, to ensure that persons with disabilities have access to and can maintain housing.
i. Policies and practices to facilitate voluntary moving on strategies.
j. Emergency plan for onsite emergencies and natural disasters.
k. Appeal and Grievance Procedures to include how tenants are made aware of these procedures.
Section 303. Single-Family Scattered Site Housing Requirements
HCD may Conditionally Award up to $10 million per Single-Family Scattered Site Project for acquisition, Rehabilitation, and an Award for Operating Expenses.
Applications may include up to five (5) sites each. Additional funding may be approved at the discretion of the Director or his/her designee, as specified in Section 207. Applicants for this Project type must meet all requirements identified in Homekey+ NOFA Sections 202(vi), 202(v), and UMR Section 8303(b). Additionally, applications must:
i. S ubmit all documents required in Article III with the following exceptions:
a. Eligible Projects under this Project type must meet the following threshold requirement, sixty (60) days from the date of the Conditional Award to be considered for an Award. Failure to meet this requirement will rescind the Conditional Award.
1. Evidence of site control for each site, as defined in Section 300(x).
2. A preliminary title report for each site, dated within 60 days of submittal, as defined in Section 300(xi).
b. Eligible Projects under this Project type must meet the following threshold requirements, ninety (90) days from the date of the Conditional Award to be considered for an Award. Failure to meet these requirements will rescind the Conditional Award.
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1. Relocation Assistance Narrative, as defined in Section 300(xvii).
2. Appraisal for each site, as noted in Section 300(xiii).
3. All Projects seeking funding for Rehabilitation must submit the following, as noted in Section 300(xiv):
4. Rehabilitation narrative of current condition of structure(s) and overall scope of work; and
5. Physical needs assessment (PNA) or equivalent evidence of Rehabilitation costs prepared by a qualified independent third-party contractor for each site.
6. All Projects seeking funding for Rehabilitation and new construction are required to submit a Phase I ESA or equivalent, as noted in Section 300(xvi).
7. One-for-one replacement of assisted housing, as defined by Section 300(xxi), including a site map, as defined in Section 300(xxi)(d).
8. Meet the minimum points score required in Section 305 of 100 points. c. Eligible Projects under this Project type must submit updates to the following threshold documents, previously submitted at the time of application as required by Article III, ninety (90) days from the date of the Conditional Award to be considered for an Award. Updates are limited to those pertaining to the identification of Project sites. Failure to meet these requirements will rescind the Conditional Award:
1. Authorizing resolutions, as defined in Section 300(vi)(a);
2. Supportive Services Plan including budget, as defined in Section 302.
3. Overview of plan and timeline for any required entitlements, permits, and environmental clearances, as defined in Section 300(xii) and supported by updated Local and Environmental Verification forms for each site, as required by the application;
4. Equity statement, as defined in Section 300(viii).
5. Engaging the Target Population statement, as defined in Section 300(ix).
6. Development plan, as defined in Section 300(xii).
7. Rehabilitation description, as defined in Section 300(xiv).
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8. Enforceable Funding Commitment(s), as defined in Section 300(xviii) and Article VII.
9. Application workbook updates. Including unit mix, development and operating budgets, and all other necessary areas to complete the application package, as defined in Section 300(iii).
10. All Grantees must coordinate disbursement of funds into an escrow account. Funds shall only be disbursed once all special conditions of disbursement are satisfied and HCD has determined that the Project has sufficiently demonstrated the unification of all sites into one Project, with a single owner and property manager.
Section 304. Recording, Income and Underwriting Requirements i. Homekey+ may fund all units in a Project or a portion of the units. If seeking Homekey+ funding for a portion of the units in a Project, Applicants must identify committed sources for the non-Homekey+ units. The non-Homekey+ units are not required to serve the Homekey+ Target Population and may therefore be restricted at higher AMI levels, which may help promote Project feasibility.
ii. If, at the time of acquisition, an existing tenant’s household income is at or below 50 percent AMI, but the tenant does not qualify as a member of the Target Population, the tenant may remain in place and the unit may still be funded by Homekey+. An Applicant may not include units in the Homekey+ application intended for Veterans if the existing tenant household is not a Veteran or a member of a Veteran’s household. When, in the course of normal tenant turnover, the ineligible household moves from the unit, the unit shall thereafter be occupied by the Target Population. There should be no more than 49 percent of the Assisted Units that do not meet the Target Population at the time of acquisition. An existing household who meets the Target Population definition or was a member of the Target Population at the time they moved into the property will not be counted towards the 49 percent cap. Evidence confirming that existing tenants qualify as either at or below 50 percent AMI or Target Population will be required of the Applicant.
iii. At year 15 from the recordation of the Affordability Covenant, in circumstances where the Grantee has not waived their right and Grantee has exhausted available operating funding and demonstrated to HCD that the Project is no longer feasible, HCD may approve an increase in income levels, to the minimum extent required for fiscal integrity, in five percent increments of Assisted Units up to 50 percent AMI.
a. HCD reserves the right to set restrictions on the unit mix, rent levels, and other factors deemed necessary. To the maximum extent possible, these changes shall minimize the impact on the lowest income Project residents and shall be phased in as gradually as possible. If, following any increase in rents and income limits, or modification of Target Population 536
California Department of Housing and Community Development Page 34 Homekey+ Notice of Funding Availability – November 26, 2024 occupancy requirements, new resources become available, or market demand changes, allowing reversion to the former income and rent limits or Target Population occupancy requirements, HCD may re- impose these income limits and rent limits or Target Population occupancy requirements, in whole or in part, subject to an analysis of Project feasibility.
iv. In addition to Section 300 above, Applicants purchasing Affordability Covenants and restrictions will also be evaluated on the following requirements:
a. The Grantees that purchase Affordability Covenants and restrictions for existing residential units shall restrict those units to individuals and households with an individual with Behavioral Health Challenges and who are Homeless or who are At Risk of Homelessness, as defined in 24 CFR part 578.3. Such restriction shall run for 55 years.
v. In addition to Section 300 above, master leasing Projects will also be evaluated on the following requirements:
a. The Grantee shall provide a 15-year plan from the recordation of the Affordability Covenant to cover operations and service costs for the Project with specific funding sources (government/philanthropic/private).
vi. As described in Section 101, the Project shall comply with the UMRs (Cal. Code Regs., tit. 25, § 8300 et seq.), to the extent those regulations are consistent with Homekey+ requirements, and shall meet the following Homekey+ underwriting requirements:
a. In analyzing Project feasibility, Projects planning to use Tenant Based Vouchers (TBV) for rental income/subsidy sources shall limit projected TBV revenue sources to no more than 50% of the Project’s assisted housing units in the application. Nothing in this NOFA shall be construed to conflict with or limit the operation of state law prohibiting discrimination against tenants based on source of income. Refer to section 508 for non- discrimination policy requirements.
b. Projects that do not have debt service, Project cashflow shall not exceed 12 percent of Operating Expenses in the first 15 years of operations.
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Section 305. Scoring Criteria
In addition to meeting the other minimum Homekey+ Program Requirements outlined in Article III, Applicants must score a minimum of 100 points to be eligible for funding.
Points earned from the application scoring criteria will be incorporated into the project report and the Standard Agreement. Applicants should select criteria based on what accurately represents the Project and is achievable. By earning these points, the Applicant commits to the deliverable throughout the tenure of Homekey+ Project.
Scores will be based on the following:
Table 9: Homekey+ Application Scoring Criteria
Categories and
Maximum Point
Scores
Evaluation Criteria
1. Site Control
(Up to 20 points)
a. Identification of the site suitable for development and evidence of site control, or a plan and timeline for obtaining site control along with other supporting evidence (e.g., letter of intent, an exclusive negotiating agreement, ground lease, etc.). NOTE: Sections 300- 303 of this NOFA further outline site control requirements related to specific Project type. (up to 20 points)
- Fee title (20 points)
- Leasehold (20 points)
- Option agreement/sales contract (20 points)
- Exclusive negotiating agreement (15 points)
- Letter of intent (15 points)
- Other forms approved by HCD (10 points)
2. Cost
Containment
(Up to 15 points)
a. For any Project where the average total cost per Assisted Unit is below baseline per door of $200,000, one (1) point will be assigned for every $10,000 under the baseline amount. (up to 10 points)
b. Utilizing Publicly Owned Land: 5 points will be awarded to Project that is located on a site selected under Excess Sites (Executive Order N-06-19) or any land declared as Surplus Land by a local agency. (5 points)
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3. Sustained
Operating
Leverage
(Up to 45 points)
Documented commitment of non-Homekey+ rental or operating subsidies (including funded services) that will be used to maintain the ongoing affordability and sustainability of operations of the Project. Sources include, but not limited to, Project-based vouchers, VASH vouchers, Mainstream vouchers, Faircloth to RAD conversions, tenant-based vouchers, or locally funded rental assistance. (up to 45 points)
a. Score is based on weighted subsidy type, percentage of costs covered, and length of commitment. Applications will need to score at least 10 points to be prioritized by the Homekey+ Program. See Section 400 on the process and determination for Projects that will be prioritized in Homekey+.
- Project operation subsidies: Up to one (1) point for each year through year fifteen (15). (up to 15 points)
b. H omekey+ Award Utilization:
Applications that request less Homekey+ Operating Award than the Maximum Eligible Award amount will earn more points.
Applications that do not request an operating Award will automatically earn 20 points. (up to 20 points):
- Two (2) points for each 10% increment of Maximum
Eligible Homekey+ Operating Award not utilized.
- No Homekey+ Operating Award Requested (20 points)
c. Mental Health Services Act or Behavioral Health Services Act funds committed to the Project as evidenced by a letter from the local county behavioral health department meeting the EFC requirements in Article VII of this NOFA. (10 points) Weighted Point Value by Subsidy Type
Project-Based Rental Subsidy 1
Committed Operating Subsidy 1
Renewable Source* 0.75
Tenant Based Voucher 0.5
Supportive Services / Healthcare Reimbursement 0.5
Intent to pursue funding 0.25
*For years that are uncommitted or not allocated. Years with existing current subsidy will be considered Committed Operating Subsidy. 539
California Department of Housing and Community Development Page 37 Homekey+ Notice of Funding Availability – November 26, 2024 Categories and
Maximum Point
Scores
Evaluation Criteria
4. Experience and
Coordination
(Up to 40 points)
a. Demonstration of Applicant or member(s) of development team’s experience in development, ownership, or operation of a Project(s) similar in scope and size to the proposed Project.
NOTE: Sections 300-303 of this NOFA further outline threshold experience requirements.
- Five (5) points awarded for each additional Project beyond the base threshold requirement (development, ownership, or operation of affordable rental housing or interim Projects in the last ten (10) years serving at least one member of the Target Population). (up to 15 points)
b. Documented evidence of LSP’s experience helping persons address barriers to housing stability and providing other support services, not necessarily within a housing Project. The LSP may be an Applicant, or a member of the development team described in Applicant’s response to point category 4.c., below. LSP experience must be with the specific population(s) with Behavioral Health Challenges housed within the Homekey+ units to count toward points in this section (e.g., families, singles, veterans, Homeless Youth, Chronically Homeless) and must describe how the Supportive Services are culturally and linguistically competent for persons of different races, ethnicities, sexual orientations, gender identities, gender expressions, ages, and disabilities. NOTE: Sections 300-303 of this NOFA further outline threshold experience requirements.
- One point awarded for each year of service experience, after 3 years. (up to 10 points)
c. Commitment letter(s), MOU(s) or other formal agreement between the Primary and Co-Applicant(s) and/or other involved partners documenting how the complete development and
management team (which includes the Applicant, developer, property manager, LSP, etc.) are connected and will work together on the Project. Applicants are encouraged to complete due diligence checklists to ensure all members of the team are aware of roles and responsibilities. (15 Points)
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Maximum Point
Scores
Evaluation Criteria
5. Community
Impact
(Up to 40 points)
a. Assisted Units include units for large family housing types (10 points)
- At least 25% of the Assisted Units in the Project shall be two- bedroom or larger units, consistent with TCAC Regulations (4 CCR § 10325(g)(1)(A-I)), (10 points)
b. Applicant waives any potential accommodation by HCD to increase income limits at year 15 from the recordation of the Affordability Covenant, as described in Section 304(iii). (up to 20 points)
- At least 25% of Assisted Units restricted (3 points)
- At least 50% of Assisted Units restricted (5 points)
- At least 75% of Assisted Units restricted (10 points) - 100% of Assisted Units restricted (20 points)
c. The extent to which the Project commits to being accessible to persons with disabilities. (up to 10 points)
- Exceeds the state and federal accessibility requirements set forth in Section 508, specifically providing a minimum of 15 percent of units with features accessible to persons with mobility disabilities, as defined in 24 C.F.R. Section 8.22 and the parallel ADAAG 2010 and CBC provisions; (5 points)
- A minimum of 10 percent of units with features accessible to persons with hearing or vision disabilities, as defined in 24 CFR Part 8.22 and the parallel ADAAG 2010 and CBC
Chapter 11B provisions. (5 points)
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6. Site Selection
(Up to 40 points)
Site Selection (Up to 12 points; for Rural Projects: up to 16 points; for Youth Projects: up to 15 points)
a. The Project site is located within 1/2 mile of a bus rapid transit station, light rail station, commuter rail station, ferry terminal, bus station, or public bus stop OR the Project includes an alternative transportation service for residents (e.g., van or dial-a-ride service), if costs of obtaining and maintaining the van and its service are included in the budget and the
operating schedule is either on demand by tenants or a
regular schedule is provided. (4 points)
The Project site is in proximity to essential services:
b. Grocery store – a full-scale grocery store/supermarket where staples, fresh meat, and fresh produce are sold. (up to 2 points)
- within 1/2-mile radius of Project (2 points)
- within 1 mile radius of Project (1 point)
- within 1 mile radius for Projects in Rural Areas (2 points) - within 2 miles radius for Projects in Rural Areas (1 point)
NOTE: If applying for TCAC, it is advisable that the grocery store be at least 25,000 gross interior square feet.
c. Health facility – a medical clinic (not merely a private doctor’s office) with a physician, physician’s assistant, or nurse practitioner on-site for a minimum of 40 hours each week, or hospital (health facilities operated by Veterans Health Administration qualify if project is veteran serving). (up to 1 point)
- within 1/2-mile radius of Project (1 point)
- within 1 mile radius of Project (1/2 point)
- within 1 mile radius for Projects in Rural Areas (1 point) - within 2 miles radius for Projects in Rural Areas (1/2 point)
A qualifying medical clinic must accept Medi-Cal payments, or Medicare payments, or Health Care for the Homeless, or have an equally comprehensive subsidy program for low-income patients.
d. Library – a book-lending public library. (up to 1 point) - within 1/2-mile radius of Project (1 point)
- within 1 mile radius of Project (1/2 point)
- within 1 mile radius for Projects in Rural Areas (1 point) - within 2 miles radius for Projects in Rural Areas (1/2 point)
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6. Site Selection
(continued)
(Up to 40 points)
e. Pharmacy – may be included in a grocery store or health facility. (up to 2 points)
- within 1/2-mile radius of Project (2 points)
- within 1 mile radius of Project (1 point)
- within 1 mile radius for Projects in Rural Areas (2
points)
- within 2 miles radius for Projects in Rural Areas (1
point)
f. A public park or a community center accessible to the general public. (up to 1 point)
- within 1/2-mile radius of Project (1 point)
- within 1 mile radius of Project (1/2 point)
- within 1 mile radius for Projects in Rural Areas (1 point) - within 2 miles radius for Projects in Rural Areas (1/2 point)
g. High speed internet service, with a minimum average
download speed of 25 megabits/second must be made
available to each Unit for a minimum of 15 years, free of charge to the tenants, and available within six months of the Project’s placed-in-service date. Documentation of internet availability must be included in the application. (up to 2 points)
- 2 points
- 3 points for rural Projects
h. For Projects with units serving Homeless Youth: community colleges, universities, trade schools, apprenticeship programs, employment programs, childcare centers for parenting youth, and/or community centers for youth (e.g., LGBTQ+ centers, drop-in youth centers). (up to 2 points)
- at least two amenities located within 1 mile radius of Project (2 points)
7. Relocation
Impacts
(Up to -20 points)
a. For any Project resulting in the permanent displacement of residents (not businesses or farm operations), as outlined below:
- The Project permanently displaces existing residents in 5% of total units. (- 5 points)
- Applicants lose one point (up to an additional 15 points) for each additional percentage point of households
displaced out of total units.
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8. Negative Points
a. Negative Points assessed by HCD to the Applicant pursuant to the Department’s Negative Points Policy.
In the event of program oversubscription, where Applicants have the same score and the same date and time stamp, HCD may consider additional criteria as a tiebreaker, including, but not limited to, cost-effectiveness, community impact (i.e. meeting the needs of individuals with behavioral health challenges), affirmatively furthering fair housing, innovative housing types, tenant stability and proximity to transit, and services and amenities.
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California Department of Housing and Community Development Page 42 Homekey+ Notice of Funding Availability – November 26, 2024 Article IV. Application Submission, Review, and Award Process
Section 400. Application Process and Submission
For Over the Counter (OTC) processing, except for the prioritization criteria enumerated below, applications will be accepted and evaluated on a first-come, first- served basis at any time from the release of the application until the final application due date, or until the available funds are exhausted, whichever occurs first. Funds will be awarded to Applicants that successfully meet threshold criteria and the minimum point score, with HCD reserving the right to prioritize applications that demonstrate Project readiness and committed long-term sustainable operating sources, regardless of the timestamp of the application submission.
Homekey+ application materials must be submitted electronically to HCD’s website.
Applications must be on HCD’s forms and HCD’s forms cannot be altered or modified by the Applicant. Excel forms must be submitted in Excel format, not as a PDF document. Supplemental documents should follow program guidance documents or templates provided on the Homekey+ website.
Electronic Submission - Requirements for uploading the Homekey+ application and required supporting documentation, including naming conventions, are described in the Homekey+ application instructions/checklist tab. Per Section 102, A pplicants must upload all complete application materials to HCD’s website no later than 5:00 p.m.
Pacific Time on the due date.
HCD reserves the right to prioritize the review and awarding of applications based on the following criteria:
i. Demonstrate Project Readiness by providing a completed and accurate application workbook; providing all required support documentation and application materials at time of application submission; identifying all Special Purpose Entities and other entities that will be a party to the Project and Standard Agreement; and confirming that all Project entities are appropriately listed as Co-Applicants and are formed at the time application; and
ii. Applications have a minimum of 10 points in Section 305(3)(a) of the Application Scoring Criteria to demonstrate to HCD the Project has operating and rental subsidies to support long-term operations for the Project.
iii. Applications not achieving a minimum score of 10 points in Section 305(3)(a), but which have higher scores than other submitted applications.
Application packages that do not meet the above- mentioned criteria may be placed on hold for Award consideration by HCD and may not be considered for funding. i. Applications will be prioritized as described in Section 203 and Section 400. ii. HCD will evaluate applications for compliance with the minimum Homekey+ Program Requirements set forth in this NOFA.
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California Department of Housing and Community Development Page 43 Homekey+ Notice of Funding Availability – November 26, 2024 iii. After each Applicant has been certified to meet the minimum Homekey+ Program Requirements, each Project must receive a minimum overall score of 100 points, as outlined in Section 305, to be considered for a funding Award.
iv. Each Applicant and Co-Applicant shall submit an authorizing resolution that, in HCD’s reasonable determination, materially comports with the Program’s requirements and is legally sufficient. In addition, each Co-Applicant shall submit a complete set of its organizational documents (including any amendments thereto). HCD will not execute the Standard Agreement until it receives the foregoing documentation, as specified.
v. Applicant shall self-acknowledge the ability to obtain the insurance coverages outlined in Section 606 of this NOFA.
vi. The application is a public record, which may be available for public review pursuant to the California Public Records Act (CPRA) (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code). After final Homekey+ Awards have been issued, HCD may disclose any materials provided by the Applicant to any person making a request under the CPRA.
HCD cautions Applicants to use discretion in providing information not specifically requested, including but not limited to bank account numbers, personal phone numbers, and home addresses. By providing this information to HCD, the Applicant is waiving any claim of confidentiality and consents to the potential disclosure of submitted material upon request. vii. HCD reserves the right to do the following:
a. Score an application as submitted even if information is missing from the application.
b. Consult with CalVet on any Veteran serving Project’s Application. c. Request clarification of unclear or ambiguous statements made in an application or request additional clarifying documentation or information; and
d. Upon the final application due date or the date when funds are exhausted, whichever is earlier, deploy unused funds from an undersubscribed allocation to fund other Eligible Applicants for other subsets of the Target Population.
viii. HCD will review, and score based on information provided in the application. If there is a significant departure from the application after a Project has been awarded, HCD may re-evaluate the Project’s score, reduce the grant amount, or assign negative points to the Applicant.
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California Department of Housing and Community Development Page 44 Homekey+ Notice of Funding Availability – November 26, 2024 Section 401. Required Pre-Application Consultation and Technical Assistance HCD requires all Eligible Applicants and Co-Applicants to engage in a pre-application consultation with HCD prior to applying. The consultation will allow the prospective Applicant to provide basic information about the proposed Project, along with other applicable programmatic considerations, including those related to site acquisition; operating match requirements; the CEQA, land use and land entitlements; local county behavioral health department coordination and other services partnerships; and long- term financing approaches. Applicants will be able to request a pre-application consultation using the pre-application survey to meet with Homekey+ program staff prior to applying. Information on pre-application consultations will be available and posted on the Homekey+ website.
Section 402. Award Process
HCD will send a Conditional Award Commitment and Acceptance of Terms and Conditions letter (Conditional Award letter) to the successful Applicant. This Conditional Award may only be accepted by timely delivery of a fully executed Acceptance of Terms and Conditions of Conditional Award form to the Department.
Funds will be disbursed after the Standard Agreement has been fully executed and approved by HCD and after the Grantee has satisfied all conditions precedent to disbursement.
Please see Section 102 for further details on Standard Agreement and fund disbursement timelines.
HCD must be notified and invited to participate in any and all groundbreakings, grand openings, and press conferences related to the Award by emailing HCD [email protected]
. Awardees must follow all marketing/promotional guidelines from HCD. Please see Appendix D for details on communication procedures.
Section 403. Appeals
i. Basis of Appeals.
a. Applicants may appeal HCDs written determination that an application is incomplete, has failed threshold review, or has otherwise been determined to provide an insufficient basis for an Award.
b. At the sole discretion of HCD, HCD’s written determination may include a request for clarifying and/or corrective information. For purposes of this Section, “clarifying information” includes information and/or documentation that resolves ambiguities in any application materials that will inform HCD’s determinations.
c. No Applicant shall have the right to appeal a decision of HCD relating to another Applicant’s application (e.g., eligibility, Award). d. If the Applicant is subject to negative points assessment, HCD shall notify the Applicant in writing within the point score letter and will provide 547
California Department of Housing and Community Development Page 45 Homekey+ Notice of Funding Availability – November 26, 2024 opportunity to appeal negative points assessment, or any disagreed points assessment, pursuant to the appeals process as set forth in the NOFA. Any request to appeal HCD’s decision regarding an application shall be reviewed for compliance with the Guidelines and the NOFA. All decisions rendered shall be final, binding, and conclusive, and shall constitute the final action of HCD.
e. Any request to appeal HCDs decision regarding an application shall be reviewed for compliance with this NOFA. All decisions rendered shall be made by the Branch Chief or his/her designee. The decision shall be final, binding, and conclusive, and shall constitute the final action of HCD.
f. The appeal process provided herein applies solely to decisions of HCD made pursuant to this NOFA.
ii. Appeal Process and Deadlines.
a. Process: To file an appeal, Applicants must submit to HCD, by the deadline set forth below, a written appeal which states all relevant facts, arguments, and evidence upon which the appeal is based. Furthermore, the Applicant must provide a detailed reference to the area or areas of the application that provide(s) clarification and substantiation for the basis of the appeal. No new or additional information will be considered if this information would result in a competitive advantage to an Applicant. Once the written appeal is submitted to HCD, no further information or materials will be accepted or considered thereafter.
Appeals are to be submitted to HCD at [email protected]
according to the deadline set forth in HCD’s written determination letter. b. Filing Deadline: Appeals must be received by HCD no later than 5:00 p.m. five (5) business days from the date of HCD’s written determination letter made in response to the application.
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California Department of Housing and Community Development Page 46 Homekey+ Notice of Funding Availability – November 26, 2024 Article V. Additional Program Requirements
Section 500. Veterans Assisted Units
i. Homekey+ Projects proposing to serve Veterans may also serve other qualifying members of the Target Population. The Veterans units will be funded from the Veterans allocation, and the remaining units will be funded from the other applicable allocation(s).
ii. The remaining units should still be used to house the most vulnerable Veterans, and the Grantee is required to demonstrate a good faith effort to place the Target Population in Veteran units. Good faith efforts include 1) adequate marketing of vacant units for at least 90 days prior to the commencement of initial lease-up or at least 60 days after a unit turns over, 2) partnering with local homeless and Veterans service providers to identify the Target Population, 3) coordination with the local Continuum of Care to receive prioritized Target Population referrals, 4) coordination with the U.S.
Department of Veterans Affairs to identify the Target Population, and 5) documented contacts with the Target Population, along with their Case Manager(s), who were referred to the Project with vacant Veteran units and choose not to lease the unit.
iii. HCD reserves the right to review documentation that substantiates the timing and frequency of such good faith efforts, including the date that the Grantee was notified of the vacancy, whenever such documentation exists and provide a descriptive timeline in the absence of documents to evidence activities such as phone calls and meetings. Documentation by the Grantee of these good faith efforts, along with information about Applicants that were not matched with a unit, is required as part of the Secondary Tenant process.
iv. If units cannot be filled with Veterans at or below 30% AMI, Secondary Tenants can be housed. Secondary Tenants are defined in statute as either:
Veterans experiencing homelessness with an income of up to 60% of the AMI.
Rents for any redesignated units are determined by income that corresponds to the Secondary Tenant’s household income.
v. Upon vacancy, the Grantee is required to redesignate the next vacant unit as a PSH unit available to Veterans with incomes at or below 30% AMI with the goal of returning the Project into compliance with the unit mix required by the Project’s Standard Agreement.
vi. For new construction the vacancy period will be measured from the date the Certificate of Occupancy or Temporary Certificate of Occupancy is issued and for Rehabilitation Projects the vacancy period will be measured from the date the Notice of Completion is issued. Vacancy for previously occupied Homekey+ units during regular Project operations will be measured from the
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California Department of Housing and Community Development Page 47 Homekey+ Notice of Funding Availability – November 26, 2024 vii. date the Grantee or their operator takes possession of the unit. The Grantee or their operator may use the time from abandonment noticing timeframes and unlawful detainers at its discretion.
viii. In no instance shall a Project have less than 30% of its Veterans units leased to 30% AMI households*. In no instance shall a Project have less than 30% of its Veterans units leased to 30% AMI households*.
ix. HUD-VASH Special Rule: On August 13, 2024, HUD published the “Section 8 Housing Choice Vouchers: Revised Implementation of the HUD Veterans Affairs Supporting Housing Program (VASH)”
1 (“special rule”) that provides a
new requirement to exclude Veterans’ service-connected disability benefits from household income calculations for the purpose of determining income eligibility. This rule for VASH applicants applies for both Project-based and tenant-based vouchers. Homekey+ income determinations for VASH applicants must exclude Veterans’ service-connected disability income and therefore are excluded from the Homekey+ Secondary Tenant alternative requirements and process. Eligible HUD-VASH program tenants are not considered Secondary Tenants and are not counted against the cap on the number of Veteran units that can be leased to Secondary Tenants under this policy.
The purpose of this is to resolve issues with matching unhoused Veterans with vacant PSH units restricted to Veterans, while retaining the program’s original intent of serving the highest need Veterans experiencing homelessness.
*
Veterans who are experiencing homelessness that are eligible to occupy veteran 30% AMI units after excluding VA service-connected disability benefits are recognized as eligible tenants. They are not treated as Secondary Tenants.
x. Each Veteran Project shall establish a goal of no amount less than five percent of total construction costs for work performed, or supplies provided to be spent with entities certified by the California Department of General Services (DGS) as a Disabled Veteran Business Enterprise (DVBE).
Pursuant to a five percent DVBE goal on total construction, each Project shall identify a DVBE Specialist who shall coordinate directly with CalVet in the identification and use of DVBEs.
Upon the commencement of construction, the Project shall submit a report to the Department and CalVet on DVBE plan implementation. This report will include: (A) The total amount budgeted for construction costs; (B) The names and addresses of DVBE contractors, subcontractors and/or suppliers that have received or are scheduled to receive payment.
1 Section 8 Housing Choice Vouchers: Revised Implementation of the HUD Veterans Affairs Supporting Housing Program Development, 89 Fed. Reg. 65769 (Aug. 13, 2024) (amending 24 CFR Parts 982 and 983).
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California Department of Housing and Community Development Page 48 Homekey+ Notice of Funding Availability – November 26, 2024 Upon completion of construction, the DVBE Specialist shall submit a report to the Department and Calvet detailing actual payments to DVBEs.
If the lead applicant is an established DVBE Reciprocity Partner [dgs.ca.gov] w ith DGS before the start of construction, then the Project shall only submit to the Department and Calvet a report detailing actual payments to DVBEs upon completion of construction.
Section 501. New Construction Cost Containment
A hallmark of Homekey has been producing housing quickly and cost-effectively, mostly through adaptive reuse. HCD will continue to retain and build upon these principles by requiring that Applicants seeking funding for new construction incorporate cost-containment strategies and commit to Total Development Cost (TDC) per unit caps.
New construction cost containment Projects will be eligible for the same Award structure as outlined in Section 205, but in addition must agree to and provide evidence that the Project can be completed based on the applicable TDC per unit cap.
The TDC per unit cap is inclusive of the Homekey+ Award and all other capital sources and expenditures, with the exceptions of land costs, COSRs, and other required reserves.
TDC per unit caps will be the lesser of: $450,000 per unit, OR the 2024 TCAC Basis Limits for the applicable county where the Project is located and unit size.
Like other Homekey+ Project types, Awards will be in the form of a grant and will provide up to 80% of the funds upfront. Unlike other Homekey+ Project types which must complete construction within 12 months starting 60 days from the date of Award, all new construction Projects awarded must commence construction within 6 months, starting 60 days after the Homekey+ Award, and have a temporary certificate of occupancy (TCO) no later than 24 months, starting 60 days from the date of Award.
The remaining 20% of funds will be disbursed upon submission of the TCO.
Applicants are advised that Homekey+ new construction Projects are not contemplated to be paired with tax credits or other highly competitive sources which are not secured by the date of application, in light of the above 6-month and 24-month deadlines. Rather, like other Homekey+ Project types, the Project must be fully funded and ready to proceed following a Homekey+ Award.
Applicants are further advised that construction shall not be contingent or reliant on any reasonably foreseeable externalities or timelines not disclosed in the application.
Grantees unable to meet critical milestone dates within applicable cure periods will be in breach of the Standard Agreement and may be subject to negative points under HCD’s Negative Point Policy.
As with all Homekey+ applications, a Local Public Entity must be the lead entity and may apply with a Co-Applicant developer.
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California Department of Housing and Community Development Page 49 Homekey+ Notice of Funding Availability – November 26, 2024 Section 502. Gap Financing
Consistent with the Homekey principles of flexibility and innovation, HCD will accept gap financing applications from Projects which meet, or could meet, the population targeting requirements of Homekey+, but have not started construction. The intent is to move Projects forward that are otherwise “shovel ready” and thereby quickly increase the number of units available.
Projects within this use must be submitted by the application due date listed in the program timeline table above. At the close of the application period, the applications will be prioritized as follows:
i. Projects with an Existing HCD Award Commitment with a pending disencumbrance per HCD’s disencumbrance policy within 6 months of the date of this NOFA.
ii. Projects with an Existing HCD Award Commitment with at least one prior unsuccessful application for tax credit/bonds ranked by total HCD funds committed.
iii. All other HCD funded Projects ranked by total amount of HCD funds committed.
a. All prior Homekey Projects awarded as “interim to permanent”, seeking funding to convert interim units to Permanent Supportive Housing, fall into this category. Only Projects that complied with the terms of the original Homekey “interim to permanent” award by completing construction and are currently achieving full on-site occupancy as interim housing will qualify for this funding. HCD at its sole discretion will determine compliance.
iv. All other Projects that are stalled due to an unsuccessful tax credit/bond application ranked by total amount of public resources committed (may include resources such as local or federal funding, donated land, etc.).
HCD will rank projects within each priority based on total gap per unit.
Depending on total demand for this typology, HCD reserves the right prioritize funding for Priority (i.), above, either in full or partially, and to not fund or fund a subset of,otherwise eligible Projects from ii, iii, and/or iv above. All prospective Applicants are encouraged to use cost containment strategies to seek the lowest amount of gap financing possible that will allow the Project to commence and complete construction.
Qualifying HCD funding programs include the following:
a. Affordable Housing and Sustainable Communities Program
b. Community Development Block Grant Program – Disaster Recovery
c. HOME American Rescue Plan
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California Department of Housing and Community Development Page 50 Homekey+ Notice of Funding Availability – November 26, 2024 d. HOME Investment Partnerships Program
e. Homekey
f. Housing for a Healthy California Program Article I
g. Infill Infrastructure Grant Program
h. Joe Serna, Jr. Farmworker Housing Grant Program
i. Local Government Matching Grants Program
j. Multifamily Housing Program
k. Multifamily Super NOFA
l. National Housing Trust Fund
m. No Place Like Home Program – competitive and non-competitive HCD- administered funds and Alternative Process County funded Projects
n. Permanent Local Housing Allocation Competitive Allocation
o. Veterans Housing and Homelessness Prevention Program All prior HCD award(s) must not have expired, or been terminated, disencumbered, or otherwise held to be void.
As with all other Homekey+ Projects, a Local Public Entity is required as a lead Applicant. In addition, the gap financing application must include all Sponsors in connection with Existing HCD Award Commitment(s).Homekey+ gap financing funds are not intended to supplant Performing Debt. The amount and terms of Performing Debt shown in the Homekey+ gap financing application must generally remain the same or be higher and more restrictive than the amount and terms shown in previous HCD applications unless there are extenuating circumstances that are clearly explained in writing by the Applicant and agreed to in writing by HCD.
For the purposes of this gap financing Projects only, Homekey+ will award no more than $450,000 per unit, inclusive of any Operating Award needed to buy down units originally contemplated as higher than 30% AMI. Any amount over $450,000 per unit will be required to provide an Enforceable Funding Commitment at the time of application.
Applicants may seek gap financing for all units or a portion of units. If Applicants seek gap financing for only a portion of units, an alternative, non- Homekey+ source is required at the time of application to fill any capital gaps associated with the non Homekey+ units. All units funded by Homekey+ will be required to serve the Target Population.
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California Department of Housing and Community Development Page 51 Homekey+ Notice of Funding Availability – November 26, 2024 Funds shall be used only for expenses that would be categorized as Project costs by the federal low-income housing tax credit program, including, but not limited to, commercial costs and reasonable reserves. HCD reserves the right to disallow costs that do not constitute reasonable Project costs, as determined by HCD in its sole and absolute discretion.
Gap financing applications should request the full capital amount needed to proceed with and complete construction, thereby avoiding the need to apply for tax credits or seek other sources of funds.
Homekey+ gap financing awards are not intended to supplant local public agency funds. Accordingly, any local agency resources shown as committed in the applications for any Existing HCD Award Commitments must be included in the financing proposed in the Homekey+ gap financing application at the same or higher level of funding as previously identified.
Homekey+ Gap Financing Terms, Deadlines, and Restrictions Requests for reducing Performing Debt or the term of the Performing Debt will be reviewed on a case-by- case basis and are not a guaranteed approval. Reduced principal loan amounts of Performing Debt must include a corresponding reduced amount in the development budget. i. Gap financing awards will be in the form of a grant. All Homekey+ gap financing awarded Projects must commence construction no later 6 months, starting 60 days from the date of the Homekey+ Conditional Award letter. For the purposes of the Homekey+ Award, commencement of construction means the first land-disturbing activity associated with a Project, including land preparation such as clearing, grading, and filling, or the first alteration of any wall, ceiling, floor, or other structural part of a building, whether or not that alteration affects the external dimensions of the building.
HCD may, in its sole and absolute discretion, extend this deadline due to conditions beyond the control of the Sponsor, for a period not to exceed 90 days. ii. The Homekey+ gap financing awarded Project must receive, and submit evidence to HCD, a temporary certificate of occupancy (TCO) within 24 months, starting 60 days from the Homekey+ Award.
iii. All Homekey+ gap financing Grantees are prohibited from applying for or receiving a tax credit allocation on a Homekey+ funded Project for a period of 20 years from the Homekey+ Conditional Award date for that Project. This prohibition will be memorialized in the Homekey+ Standard Agreement and in amendments to the Standard Agreements for any Existing HCD Award Commitment. iv. If, following a Homekey+ application and award, a Sponsor syndicates and sells a portion of their ownership interest to a partner or equivalent party seeking tax losses associated with the Project, nine-tenths of the gross proceeds of that sale shall be remitted to HCD. Negative points may be assessed to the Sponsor in the event the Project is sold or refinanced with a distribution of net equity.
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California Department of Housing and Community Development Page 52 Homekey+ Notice of Funding Availability – November 26, 2024 Section 503. Article XXXIV
Homekey+ provides permanent supportive housing for persons (including Veterans and Youth) who are homeless, chronically homeless, or at risk of homelessness, and who are living with a Behavioral Health Challenge. As such, article XXXIV, section 1of the California Constitution is not applicable to Homekey+ funded development, consistent with Health and Safety Code sections 37000-37002.
Section 504. Housing First
The Eligible Applicant shall certify to employ the core components of Housing First, as set forth at Welfare and Institutions Code Section 8255, subdivision (b), in its property management and tenant selection practices. Projects shall accept tenants regardless of sobriety, participation in services or treatment, history of incarceration, credit history, or history of eviction in accordance with practices permitted pursuant to Housing First practices, including local Coordinated Entry System prioritization protocols, or other federal or state Project funding sources.
Section 505. Tenant Referrals
Referrals to Homekey+ Assisted Units shall be made through the local Coordinated Entry System (CES), or another comparable prioritization system based on greatest need for housing and services, to determine the most appropriate referral. Homekey+ units should be reserved for serving the Target Population where households are more appropriately served by PSH, including referrals from persons exiting encampments. Households with lower levels of need may be better served by other housing and less intense service interventions.
Applicants must demonstrate efforts to coordinate with their local county behavioral health department, to ensure the referral process to the Homekey+ units is aligned with the requirements of this NOFA.
If referrals will be made using a prioritization system other than CES, the Applicant must describe the plan for tenant referrals in detail, including which agency is responsible for managing the referral approach and what stakeholders are involved in the prioritization process. Awardees are encouraged to consider an alternative referral system consisting of referrals for persons exiting encampments, incarceration, or treatment facilities. Prioritization for Homekey+ units should be based on greatest need factors and assessments established by the local jurisdiction in collaboration with the Continuum of Care (CoC). CoC collaboration in Project and Supportive Services design is also strongly encouraged to help target and serve those with the greatest need.
Section 506. Participation in the Homeless Management Information System (HMIS) Pursuant to Assembly Bill 977 (Statutes of 2021-22), Grantees who have been awarded HCD funding under the Homekey+ program must enter Universal and Common Data Elements as defined by HUD, on the individuals and families served into the Homeless
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California Department of Housing and Community Development Page 53 Homekey+ Notice of Funding Availability – November 26, 2024 Management Information System (HMIS). For more information about this requirement visit Homelessness Program Data Reporting | California Department of Housing and Community Development
Any health information provided to, or maintained within, the statewide Homeless Management Information System shall not be subject to public inspection or disclosure under the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code). “Health information” means “protected health information” as defined in Part 160.103 of Title 45 of the Code of Federal Regulations, and “medical information,” as defined in subdivision (j) of Section 56.05 of the Civil Code.
Section 507. Relocation
In addition to the Relocation Assistance Narrative required in Section 300 submitted at the time of application, before the Homekey+ Award will be disbursed, Grantee must submit either:
i. A n HCD-approved relocation plan; or
ii. A n HCD-issued Certification Regarding Non-Application of Relocation Benefits and Indemnification Agreement (certificate of no-relocation), which has been duly executed and approved by HCD.
Grantee must comply with all applicable federal, state, and local relocation law.
Pursuant to relocation law, a Grantee must have a relocation plan prior to proceeding with any phase of a Project or other activity that will result in the displacement of persons, businesses, or farm operations. To ensure that displaced persons and entities do not suffer a disproportionate impact as a result of Projects which benefit the public, all notices to vacate and relocation services must be provided to them in accordance with applicable law.
HCD will identify its form, substance, and submittal requirements for these relocation documents in the Homekey+ application materials. Where the Grantee’s activities will or may result in displacement, the Grantee’s development budget shall include enough funds to pay all costs of relocation benefits and assistance. Any modifications to the foregoing process requirements must be approved in advance by HCD in writing.
Section 508. Non-Discrimination and Accessibility
Grantees shall adopt a written non-discrimination policy requiring that no person shall, on the grounds of race, color, religion, sex, gender, gender identity, gender expression, sexual orientation, marital status, national origin, ancestry, familial status, source of income, disability, age, medical condition, genetic information, citizenship, primary language, immigration status (except where explicitly prohibited by federal law), arbitrary characteristics, and all other classes of individuals protected from discrimination under federal or state fair housing laws, individuals perceived to be a member of any of the preceding classes, or any individual or person associated with any of the preceding classes be excluded from participation in, be denied the benefits 556
California Department of Housing and Community Development Page 54 Homekey+ Notice of Funding Availability – November 26, 2024 of, or be subjected to discrimination under, any program or activity funded in whole or in part with program funds made available pursuant to this NOFA.
Grantees shall comply with the Fair Housing Amendments Act (42 U.S.C § 3601 et seq.), the California Fair Employment and Housing Act (Gov. Code, § 12900 et seq. and Cal. Code of Regs. Tit. 2, §§ 12264 – 12271), the Unruh Civil Rights Act (Civ.
Code, § 51), Government Code section 11135, Government Code section 8899.50, Government Code § 65583 et seq., Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. § 794), and all regulations promulgated pursuant to those statutes, including 24 C.F.R. Part 8, 24 C.F.R. Part 100 and its design and construction requirements, including ANSI A117.1 Standards and the March 6, 1991 Fair Housing Accessibility Guidelines, in conjunction with the June 28, 1994 Supplement to Notice of Fair Housing Accessibility Guidelines: Questions and Answers About the Guidelines, 28 C.F.R. Part 35, and 28 CFR Part 36.
Grantees shall comply with the requirements of the Americans with Disabilities Act of 1990 (U.S.C § 12101 et seq.). All developments shall adhere to the accessibility requirements set forth in California Building Code Chapter 11A and 11B and the Americans with Disabilities Act, Title II and Title III. In addition, developments shall adhere to either the Uniform Federal Accessibility Standards (UFAS), 24 C.F.R. Part 8, or HUD's modified version of the 2010 ADA Standards for Accessible Design (Alternative 2010 ADAS), HUD-2014-0042-0001, 79 F.R. 29671 (5/23/14) (commonly referred to as "the Alternative Standards" or "HUD Deeming Notice"). Accessible units shall, to the maximum extent feasible and subject to reasonable health and safety requirements, be distributed throughout the Project and be available in a sufficient range of sizes and amenities consistent with 24 CFR part 8.26.
Applicants are further advised that while Homekey+ incorporates the MHP guidelines ,
as explained in Section 101, as a courtesy and point of emphasis, HCD directs prospective Applicants to Section 7314 (a) and (b) of the MHP guidelines, which further articulates Fair Housing, Nondiscrimination, and Accessibility requirements.
HCD also suggests Applicants review its April 2021 Affirmatively Furthering Fair Housing document at this link.
Section 509. Prevailing Wages
Applicant's contemplated use of Homekey+ funds is subject to California's prevailing wage law (Lab. Code, § 1720 et seq.). Applicant is urged to seek professional legal advice about the law's requirements. Prior to disbursing the Homekey+ funds, HCD will require a certification of compliance with California's prevailing wage law, as well as all applicable federal prevailing wage law, or a certification that the development is exempt from prevailing wage as defined in Government Code 65913.4(a)(9). The certification must verify that prevailing wages have been or will be paid, and that labor records will be maintained and made available to any enforcement agency upon request. The certification must be signed by the general contractor(s) and the Grantee. The Department will not disburse funds for Rehabilitation or construction until the certification is signed by the general contractor.
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California Department of Housing and Community Development Page 55 Homekey+ Notice of Funding Availability – November 26, 2024 Section 510. Environmental Clearances
Projects, including phased Projects, that satisfy the requirements HSC 50675.1.5, shall be exempt from the California Environmental Quality Act (CEQA) Projects under this section are considered a “use by right”, which are specifically exempt from CEQA (CA Public Resources Code section 21000 et seq.). (HSC 50675.1.5(e)(2)(A)).
Moreover, HSC 50675.1.5(c) specifically exempts HCD actions taken to “provide financial assistance or insurance for the development and construction of Projects” from CEQA review. HCD encourages Eligible Applicants to fully engage with HCD’s technical assistance and to review the CEQA exemption set forth at HSC section 50675.1.5 and the provision for land use consistency and conformity set forth at HSC section 50675.1.3, subdivision (i).
Applicants should consult with their counsel for legal advice in construing application of the foregoing exemptions to their Project. It is entirely within an Applicant’s discretion to determine whether to use the statutory CEQA exemption, whether the exemption applies to the Applicant’s proposed activity, or whether some other mechanism applies and could be used to satisfy obligations under CEQA.
Applicants must provide National Environmental Act (NEPA) clearance, as applicable.
According to the National Environmental Policy Act (NEPA), Grantees must consider environmental impacts early in the planning process before decisions are made, and actions are taken. The Project must assess environmental impacts if a Project has applied for HUD assistance (HOME, CDBG, PBVs, Choice Neighborhoods Grant, ShelterCare Plus, etc.). HUD’s regulations prohibit grant recipients and their partners/contractors from committing or spending HUD or non-HUD funds on an activity that could limit the choice of reasonable alternatives before completing the environmental review process. The prohibition of choice-limiting actions does not apply to commitments of non-federal funds before the Project has applied for HUD funding.
When an application is submitted for a federal grant/loan, all activity must stop until the environmental review process is complete.
There is no flexibility or waiver of NEPA environmental review requirements. The Project must receive an Authority to Use Grant Funds (AUGF) before the Project proceeds with the acquisition or physical activities, including non-HUD-funded activities.
A choice-limiting action can result in a violation that jeopardizes HUD funding for the Project.
The prohibition on choice-limiting actions prohibits physical activity, including acquisition, Rehabilitation, and construction, as well as contracting for or committing to any of these actions before completion of the environmental review. Some examples of choice-limiting actions are:
• Acquisition
• Rehabilitation
• Demolition
• Site improvements (including site clearance/grubbing) • Leases or Transfers
• Entering into contracts such as construction bidding
• A change in Project conditions or unexpected conditions arise 558
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Choice-Limiting Actions are not:
• P lans or designs
• Activities necessary to support an application for federal, state, Tribal, or local permits
• Option agreement on a proposed property (make sure that the contract is contingent on environmental review clearance and don’t close escrow before the review process is complete)
HCD does not determine which Projects will require NEPA clearance. Applicants shall provide HCD a status of any required NEPA review at the time of application. For more information, visit the HUD Exchange, review HCD’s Environmental Review Guidance by clicking here, or contact HCD’s Environmental Services Team at [email protected].
Section 511. Land Use
HSC Section 50675.1.5 outlines the criteria by which a Homekey+ Project shall be a use by right and subject to a streamlined, ministerial review process. Appendix C provides the full list of criteria for 50675.1.5. Applicants should consult with their counsel for legal advice in the application of the law to their Project. HCD may also request documentation that Applicants have considered the law in their development planning.
Section 512. State Requirements
All Assisted Units and other Units of the Projects must meet all applicable state and local requirements pertaining to rental housing, including but not limited to, requirements for minimum square footage, and requirements related to maintaining the property in a safe and sanitary condition.
Section 513. Grantee Liability
All entities in the Grantee structure (to include the Eligible Applicant, any Co-Applicants, and any other entities added to the ownership structure of the Project pursuant to [Section 303 vi.] of this NOFA) shall be bound by the Homekey+ Program Requirements; and shall remain jointly and severally liable to HCD for performance under the Standard Agreement and for compliance with all Homekey+ Program Requirements. This provision shall remain applicable notwithstanding any Department- approved transfer or assignment of interest, or any designation of a third party for the undertaking of all or any part of the Scope of Work in the Standard Agreement.
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California Department of Housing and Community Development Page 57 Homekey+ Notice of Funding Availability – November 26, 2024 Article VI. Project Operations
Section 600. Project Oversight
As specified by HCD and upon request, Grantees shall provide progress reports in connection with completed milestones and any updates to the timeline for completion of the Project. Grantees shall promptly notify HCD upon any changes to the Project development, changes to the Project and changes in Grantee organization, authorization, or capacity.
Section 601. Reporting
Grantees shall submit a Homekey+ annual report (annual report) to HCD following Standard Agreement execution. The annual report will be due no later than March 31 for the prior calendar year of January 1 to December 31. The annual report will continue to be required for at least five years following full occupancy of the Project and until the Homekey+ operating subsidy has been fully expended. The report shall be in such form and contain such information as required by HCD in its sole and absolute discretion. At minimum, the Annual Report shall include the following data:
i. The amount of funds expended for the Project.
ii. The location of any properties for which the funds are used.
iii. The number and bed size of useable housing units produced, or planned to be produced, using the funds.
iv. The number of individuals housed, or likely to be housed, using the funds.
v. The number of units, and the location of those units, for which operating subsidies have been, or are planned to be, capitalized using the funds.
vi. Any lessons learned from the use of the funds.
vii. Proposed changes to the program to address lessons learned. viii. An explanation of how funding decisions were made for acquisition, conversion, or Rehabilitation Projects, or for COSRs, including what metrics were considered in making those decisions.
ix. Total project development costs
x. Total operating costs
If a Project received an operating Award, Grantees shall also report their operating expenditures in the annual report.
In addition to the foregoing, the Grantee shall submit to HCD such periodic reports, updates, and information as deemed necessary by HCD to monitor compliance and/or perform program 560
California Department of Housing and Community Development Page 58 Homekey+ Notice of Funding Availability – November 26, 2024 evaluation. Any requested data or information shall be submitted in electronic format on a form provided by HCD.
The Grantee shall ensure that the expenditure of Homekey+ funds is consistent with the requirements of the Program. HCD shall monitor the expenditures to ensure that those expenditures comply with this NOFA.
HCD may request the repayment of funds or pursue any other remedies available, at law or in equity, for failure to comply with Program requirements or contractual commitments.
Grantees receiving an Award for Veteran Assisted Units shall submit any additional information as requested by HCD or CalVet, including but not limited to staffing and training details, tenant demographic and veteran- oriented data, and tenant survey results.
Section 602. Disbursement of Grant Funds
HCD may disburse funds to cover Homekey+-critical expenditures that were incurred prior to Homekey+ application pursuant to Section 204. Homekey+ program funds will be disbursed to the Grantee after HCD has approved the relocation plan or issued a certificate of no-relocation, received a request for funds from the Grantee, received and approved an Affordability Covenant for recordation at close of escrow, and approved a fully executed Standard Agreement between the Grantee and HCD. The Grantee cannot request funds for rehabilitation or construction until they have provided a certification of compliance with prevailing wage laws signed by the Grantee and their selected general contractor, as detailed in Section 509.
The Standard Agreement will set forth the general conditions of disbursement, any conditions precedent to disbursements (e.g., proof of recordation of the Affordability Covenant, documentation requirements for pre-Standard Agreement expenditures or conditional performance measures), and HCD’s remedies upon an event of default. The Standard Agreement will also identify which of the Co-Grantees will be the designated payee.
Homekey+ funds awarded to an Applicant may not be transferred to another entity to expend on an eligible use unless that other entity is a signatory on the Standard Agreement.
All Homekey+ funds must be wired to an escrow company. The Applicant shall identify the name and address of the escrow company, the name of the escrow officer, the escrow number, and any other information requested by HCD. The appropriate Affordability Covenant must be on file and approved by HCD to be included in the escrow transaction for recordation. The Grantee may only request awarded operating funds, if applicable, after providing confirmation that construction and/or Rehabilitation on the Project is completed, and the Project is ready to begin leasing up. HCD reserves the right to disburse funds prior to construction completion if the Grantee sufficiently demonstrates need for Homekey+ operational funds prior to construction completion.
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California Department of Housing and Community Development Page 59 Homekey+ Notice of Funding Availability – November 26, 2024 Section 603. Legal Documents
Upon the Award of Homekey+ funds to a Project, HCD shall enter into one or more agreements with the Grantee, including a Standard Agreement, which shall encumber funds from the Homekey+ program, subject to specified conditions. The agreement or agreements shall include, but not be limited to:
i. A description of the approved Project and the permitted uses of funds. ii. The amount and terms of the program grant.
iii. The use, income, occupancy, and rent restrictions to be imposed on the Project through the Affordability Covenant.
iv. Performance milestones, and other progress metrics, governing the completion of the Project, along with the remedies available to HCD in the event of a failure to meet such milestones or metrics. v. Provisions governing the manner, timing, and conditions of the disbursement of the program grant.
vi. Special conditions imposed as part of HCD's approval of the Project. vii. Terms and conditions required by federal and state law. viii. Requirements for reporting to HCD.
ix. Remedies available to HCD in the event of a violation, breach, or default of the agreement; and
x. Provisions regarding Grantee liability. Specifically, the Grantee will remain liable to HCD for compliance with and the performance of all Program requirements regardless of any HCD-approved transfer or assignment of interest. Likewise, each co-Grantee will remain jointly and severally liable to HCD for compliance with and the performance of all Program requirements regardless of any HCD- approved transfer or assignment of interest, and notwithstanding the co- Grantees' identification of a designated payee.
The agreement will also include such other provisions as are necessary to ensure adherence to the objectives and requirements of the program.
Section 604. Sales, Transfers, and Encumbrances
An Applicant(s) shall not sell, assign, transfer, encumber, or convey the awarded Project, or any interest therein or portion thereof, without the express prior written approval of HCD, which may be granted, delayed, or withheld in HCD’s sole and absolute discretion. All Applicants and Co-Applicants must be signatories on the Standard Agreement and may not be removed, even upon an approved transfer to another entity.
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California Department of Housing and Community Development Page 60 Homekey+ Notice of Funding Availability – November 26, 2024 Section 605. Defaults and Grant Cancellations
Funding commitments may be canceled by HCD under any of the following conditions:
i. The objectives and requirements of the Homekey+ program cannot be met, and the implementation of the Project cannot proceed in a timely fashion in accordance with the timeframes established in the Standard Agreement or the regulatory agreement.
ii. In the event of a breach or violation by the Grantee, HCD may give written notice to the Grantee to cure the breach or violation. If the breach or violation is not cured to the satisfaction of HCD within a reasonable time period, HCD, at its option, may declare a default under the relevant document and may seek legal remedies for the default including the following:
a. HCD may seek, in a court of competent jurisdiction, an order for specific performance of the defaulted obligation or the appointment of a receiver to complete the Project in accordance with Homekey+ Program Requirements; and
b. HCD may seek such other remedies as may be available under the relevant agreement or at law, or in equity.
Section 606. Insurance Requirements
i. Commercial General Liability
Due at time of disbursement, Applicants shall maintain general liability on an occurrence form with limits not less than $1,000,000 per occurrence and $2,000,000 aggregate for bodily injury and property damage liability.
The policy shall include coverage for liabilities arising out of premises, operations, independent contractors, products, completed operations, personal and advertising injury, and liability assumed under an insured agreement. This insurance shall apply separately to each insured against which claim is made, or suit is brought subject to the Applicant's limit of liability. The policy must name the State of California and the California Department of Housing and Community Development, as well as the respective appointees, officers, agents, and employees of each, as additional insureds, but only with respect to work performed under the contract.
If available in the open market at a reasonable cost, the policy shall also include an endorsement for physical abuse and child/sexual molestation coverage. Coverage shall include actual or threatened physical abuse, mental injury, sexual molestation, negligent hiring, employment, supervision, investigation, reporting to proper authorities, and retention of any person for whom the Applicant is responsible. This insurance shall apply separately to each insured against which claim is made, or suit is 563
California Department of Housing and Community Development Page 61 Homekey+ Notice of Funding Availability – November 26, 2024 brought subject to the Applicant's limit of liability. Coverage shall include the cost of defense and the cost of defense shall be provided outside the coverage limit.
If available in the open market at a reasonable cost, the policy shall also include an endorsement for assault and battery.
ii. Automobile Liability
If Applicable. Due at time of Application and at time of disbursement. Applicant shall maintain motor vehicle liability with limits not less than $1,000,000 combined single limit per accident. Such insurance shall cover liability arising out of a motor vehicle including owned, hired, and non- owned motor vehicles. The policy must name the “State of California and the California Department of Housing and Community Development”, as well as the respective appointees, officers, agents, and employees of each, as additional insureds, but only with respect to work performed under the contract.
If Applicant will not have or use any commercially owned vehicles during the term of the Standard Agreement, by signing the Standard Agreement, the Applicant certifies that the Applicant and any appointees, employees, subcontractors, or servants possess valid automobile coverage in accordance with California Vehicle Code sections 16450 to 16457, inclusive. HCD reserves the right to request proof at any time.
iii. Workers’ Compensation and Employer’s Liability
Due at time of disbursement, Applicant shall maintain statutory worker’s compensation and employer’s liability coverage for all its employees who will be engaged in the performance of the contract. In addition, employer’s liability limits of $1,000,000 are required. By signing the Standard Agreement, Applicant acknowledges compliance with these regulations. A Waiver of Subrogation or Right to Recover endorsement in favor of the State of California and the California Department of Housing and Community Development must be attached to the certificate.
iv. Builder's Risk/Installation Floater
Due at time of disbursement and prior to starting construction, if there is installation or construction of property/materials on or within the facility at any time during the term of the Standard Agreement, the Applicant shall maintain in force, at its own expense, Builders Risk/Installation Floater covering the labor, materials, and equipment to be used for completion of the work performed under this contract against all risks of direct physical loss, excluding earthquake and flood, for an amount not less than the full amount of the property and/or materials being installed and/or constructed on or within the facility. The Applicant agrees as a provision of the contract 564
California Department of Housing and Community Development Page 62 Homekey+ Notice of Funding Availability – November 26, 2024 to waive all rights of recovery against the state.
v. Property Insurance
Due at time of acquisition and/or construction completion, the Applicant shall maintain fire, lightning and extended coverage insurance on the facility which shall be in a form of a commercial property policy, in an amount equal to one hundred percent (100%) of the then current replacement cost of the facility, excluding the replacement cost of the unimproved real property constituting the site. The extended coverage endorsement shall, as nearly as practicable, include but not be limited to loss or damage by an explosion, windstorm, riot, aircraft, vehicle damage, smoke, vandalism, and malicious mischief and such other hazards as are normally covered by such endorsement.
vi. Self-Insured
Due at time of disbursement, if a state, regional, or Local Public Entity is the sole Applicant, and if that entity is self-insured in whole or in part as to any of the above-described types and levels of coverage, then that entity shall provide HCD with a written acknowledgment of this fact before execution of the Standard Agreement. If, at any time after the execution of the Standard Agreement, the state, regional, or Local Public Entity abandons its self- insured status, that entity shall immediately notify HCD of this fact and shall comply with all of the terms and conditions of this Section pertaining to insurance requirements. HCD may accept evidence of self-insurance from other Eligible Applicants in its sole and absolute discretion.
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California Department of Housing and Community Development Page 63 Homekey+ Notice of Funding Availability – November 26, 2024 Article VII. Definitions
Below are the definitions for purposes of the Homekey+ program:
i. “Affordability Covenant” means the legally binding 55-year instrument which (a) is recorded in first position against the Project real property for the benefit of the state, regional, local, or Tribal Grantee; (b) imposes use, operation, occupancy, and affordability restrictions on the real property and improvements; (c) duly names HCD as a third-party beneficiary with the right and privilege, but not the obligation, of enforcement thereof, (d) incorporates the Homekey+ Program Requirements by reference, and (e) is otherwise in form and substance acceptable to HCD. Upon its execution, the Affordability Covenant shall be binding, effective, and enforceable against all successors, transferees, and assignees, in accordance with Section 208 of this NOFA, after a certificate of occupancy or its equivalent has been issued for the Project, or if no such certificate is issued, from the date of initial occupancy of the Project. Affordability Covenants on Tribal trust land are addressed separately under Section 208 of this NOFA.
ii. "Applicant" means the “Eligible Applicant,” as that term is defined in this NOFA, as well as the Eligible Applicant’s Co-Applicant(s), if applicable. As allowed or required by context, the term “Applicant” shall refer to all such entities in their individual and/or collective capacity.
iii. "Area Median Income" or "AMI" means the most recent applicable county median family income published by the California Tax Credit Allocation Committee (TCAC) or HCD.
iv. "Assisted Unit" means a Homekey+-funded residential dwelling unit in PSH that is subject to rent, income, occupancy, or other restrictions associated with Homekey+ requirements. See also “Youth Assisted Unit.”
v. "At Risk of Homelessness" has the same meaning as defined in Title 24 CFR Part 578.3.
vi. "Award" means the portion of program funds available for a Grantee to expend toward eligible program uses.
vii. “Behavioral Health Challenge” is defined within the California Welfare and Institutions Code (WIC) Section 5965.01, subdivision (b). The term includes, but is not limited to a serious mental illness, as described in subdivision (c) or (d) of Section 14184.402 and below, however enrollment in Medi-Cal as a beneficiary is not a conditions for Homekey+ housing. Behavioral Health Challenge may also include a substance use disorder, as described in Section 5891.5, subdivision (c)..
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California Department of Housing and Community Development Page 64 Homekey+ Notice of Funding Availability – November 26, 2024 For those who meet the criteria of this definition, enrollment in Medi-Cal as a Beneficiary is not a condition for Homekey+ housing.
WIC §14184.402(c), defines “serious mental illness” pursuant to the following criteria for individuals that are 21 years of age or older:
(1) The [individual] has one or both of the following:
(A) Significant impairment, where impairment is defined as distress, disability, or dysfunction in social, occupational, or other important activities.
(B) A reasonable probability of significant deterioration in an important area of life functioning; and
(2) The beneficiary's condition as described in paragraph (1) is due to either of the following:
(A) A diagnosed mental health disorder, according to the criteria of the current editions of the Diagnostic and
Statistical Manual of Mental Disorders and the International Statistical Classification of Diseases and Related Health Problems.
(B) A suspected mental disorder that has not yet been
diagnosed.
WIC §14184.402 (d.) defines “serious mental illness” pursuant to either of the following criteria for individuals that are under 21 years of age:
(1) The [individual] has a condition placing them at high risk for a mental health disorder due to experiencing trauma evidenced by scoring in the high-risk range under a trauma screening tool approved by the (non-HCD) department, involvement in the child welfare system, juvenile justice involvement, or experiencing homelessness; OR
(2) The [individual] meets both of the following requirements:
(A) The [individual] has at least one of the following:
(i) A significant impairment.
(ii) A reasonable probability of significant deterioration in an important area of life functioning.
(iii) A reasonable probability of not progressing
developmentally as appropriate.
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California Department of Housing and Community Development Page 65 Homekey+ Notice of Funding Availability – November 26, 2024 (iv) A need for specialty mental health services,
regardless of presence of impairment, that are not
included within the mental health benefits that a
Medi-Cal managed care plan is required to provide;
AND
(B) The beneficiary's condition as described in subparagraph (A) is due to one of the following:
(i) A diagnosed mental health disorder, according to the criteria of the current editions of the Diagnostic and
Statistical Manual of Mental Disorders and the
International Statistical Classification of Diseases
and Related Health Problems.
(ii) A suspected mental health disorder that has not yet been diagnosed.
(iii) Significant trauma placing the beneficiary at risk of a future mental health condition, based on the
assessment of a licensed mental health professional.
WIC §5891.5, subdivision (c.) (1).:
(c)(1) For purposes of this section, "substance use disorder" means an adult, child, or youth who has at least one diagnosis of a moderate or severe substance use disorder from the most current version of the Diagnostic and Statistical Manual of Mental Disorders for Substance-Related and Addictive Disorders, with the exception of tobacco-related disorders and non-substance-related disorders.
viii. “Case Manager” is a social worker or other qualified person who has or is supervised by a person with a relevant master’s degree. At its sole discretion, the Department may approve Supportive Service plans where Case Managers cannot be supervised by a person with a master’s degree. A Case Manager facilitates individualized service planning, and the assessment, coordination, monitoring, referral, and advocacy of services to meet tenants’ Supportive Services needs, including, but not limited to, access to medical and mental health services, substance use disorder treatment and services, vocational training, employment, home and community-based services and crisis management and interventions.
Resident service coordinators are not Case Managers. For Homekey+ tenants who are also HUD-VASH program participants, the Case Manager for services will be the applicable U.S. Department of Veterans Affairs (VA) Case Manager (or third-party provider selected by the VA), in accordance with the HUD-VASH Program.
ix. "Chronic Homelessness" means a person who is chronically homeless, as defined in Title 24 CFR Part 578.3.
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x. "City" means a City or City and County that is legally incorporated to provide local government services to its population. A City can be organized either under the general laws of this state or under a charter adopted by the local voters.
xi. “Co-Applicant” means the nonprofit corporation, for-profit corporation, limited liability company (LLC), and/or limited partnership (LP) that is jointly applying for Homekey+ funds with a state, regional, or Local Public Entity, or with a Tribal Entity.
xii. “Conditional Award” or “Conditional Award Commitment and Acceptance of Terms and Conditions letter” means a letter specifying the portion of program funds available for a Grantee to expend toward eligible program uses once the Grantee has acknowledged and fulfilled the terms and conditions.
xiii. "Continuum of Care" means the same as defined by Title 24 CFR Part 578.3.
xiv. “Coordinated Entry System” means a centralized or coordinated process developed pursuant to Section 578.7 of Title 24 of the Code of Federal Regulations, as that section read on January 10, 2019, designed to coordinate homelessness program tenant intake, assessment, and provision of referrals. To satisfy this subdivision, a centralized or coordinated assessment system shall cover the geographic area, be easily accessed by individuals and families seeking housing or services, be well advertised, and include a comprehensive and standardized assessment tool.
xv. "HCD" means the California Department of Housing and Community Development.
xvi. “Discretionary Reserve” means the same as in Section 203 (i)(c) and will be prioritized in the manner described in Section 400 of this NOFA.
xvii. “Eligible Applicant” means a City; county; a City and county; any other state, regional, and Local Public Entity, including a council of government, metropolitan planning organization, and regional transportation planning agency designated in Section 29532.1 of the Government Code; or a Tribal Entity(ies) as defined in this NOFA. For purposes of this definition, a “Local Public Entity” is further defined in accordance with HSC section 50079. As allowed or required by context, “Applicant” shall be interpreted to include any of the foregoing entities, as well as that entity’s Co- Applicant. Upon receiving an Award of Homekey+ funds, the Eligible Applicant and any Co-Applicant(s) will, both individually and collectively, be referred to as the “Grantee” for purposes of this NOFA. Please see Section 200 for specific eligible applicant requirements for Homekey+ HHAP Supplemental Funds.
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xviii. “Enforceable Funding Commitment” (EFC) means a letter or other document, in form and substance satisfactory to HCD, which evidences an enforceable commitment of funds or a reservation of funds by a Project funding source, and which contains the following:
a. The name of the Applicant.
b. The Project name.
c. The Project site address, assessor’s parcel number, or legal description; and
d. The amount, interest rate (if any), and terms of the funding source including eligible and ineligible costs.
The Enforceable Funding Commitment may be conditioned on certain standard underwriting criteria, such as appraisals, but may not be generally conditional. Examples of unacceptable general conditions include phrases such as “subject to senior management approval,” or a statement that omits the word “commitment,” but instead indicates the lender’s “willingness to process an application” or indicates that financing is subject to loan committee approval of the Project.
Contingencies in commitment documents based upon the receipt of tax- exempt bonds or low-income housing tax credits will not disqualify a source from being counted as committed. EFC types include sustained sources such as Project-based vouchers, Renewable Sources such as Continuum of Care, tenant-based subsidies like tenant-based vouchers, or intent to pursue sources like private funding or HHAP sources exceeding expiration and yet to be announced in the legislature.
Where local sources may be dependent upon future budget allocations or are in the process of being allocated, please submit one of the two documents below. For further information on this, please see Definition (xl.) on Renewable Sources below. Applicants can demonstrate funding commitments by submitting one of the following:
i. An executed authorizing resolution from the governing body of the Local Public Entity describing the commitment or intent to commit the funds to the Eligible Project (by name) upon allocation approval, or
ii. A formal letter, on official letterhead, from the Local Public Entity’s governing body or from an official with authority, that demonstrates the Local Public Entity’s intent to commit funds to the Eligible Project (by name) upon allocation approval. These funding commitments will be noted in the Homekey+ Standard Agreement.
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California Department of Housing and Community Development Page 68 Homekey+ Notice of Funding Availability – November 26, 2024 xix. “Existing HCD Award Commitment” means the existing commitment of Department funds to the Project, as well as the Department loan program making that commitment.
xx. “Extremely Low Income” or “ELI” has the same meaning as in Title 24 CFR Part 93.2.
xxi. “Foster Youth” means a child or nonminor dependent, as defined by Section 475 of Title IV-E of the Social Security Act (42 U.S.C. Sec. 675(8)) and subdivision (v) of Section 11400 of the Welfare and Institutions Code, who has been removed from the custody of their parent, legal guardian, or Indian custodian pursuant to Section 361 or 726 of the Welfare and Institutions Code, and who has been ordered into any placement described in paragraphs (2) to (9), inclusive, of subdivision (e) of Section 361.2 of, or paragraph (4) of subdivision (a) of Section 727 of, the Welfare and Institutions Code.
xxii. "Grantee" means the Eligible Applicant (and, if applicable, the Co- Applicant) that has been awarded funds under Homekey+, and that will be held responsible for compliance with and performance of all Homekey+ Program Requirements. The Grantee may comprise one or more entities, so long as the Grantee structure includes an “Eligible Applicant,” as that term is defined in this NOFA. All such entities shall, in their individual and collective capacity as the “Grantee,” be bound by the Homekey+ Standard Agreement and each and every one of the Homekey+ program terms, conditions, and requirements.
xxiii. “Homekey+ Program Requirements” means the following, all as amended and in effect from time to time:
a. the Homekey+ Program Notice of Funding Availability
b. Chapter 6.7 (commencing with Section 50675) of Part 2 of Division 31 of the Health and Safety Code.
c. the Grantee’s application for Homekey+ funding.
d. the Project report prepared by HCD in reliance on the representations and descriptions included in the Grantee’s application for Homekey+ funding.
e. the award letter issued by HCD to the Grantee.
f. the relevant STD 213, Standard Agreement for the Homekey+ funding; and
g. all other applicable law.
xxiv. "Homeless" has the same meaning as defined in Title 24 CFR Part 578.3. 571
California Department of Housing and Community Development Page 69 Homekey+ Notice of Funding Availability – November 26, 2024 xxv. “Homeless Youth” means a child, youth, or current or former Foster Youth through the age of 25 who qualifies as “Homeless” under any of the relevant definitions set forth or identified in Title 24 CFR Part 578.3. xxvi. "Housing First" has the same meaning as in Welfare and Institutions Code section 8255, including all the core components listed therein.
xxvii. "HUD" means the U.S. Department of Housing and Urban Development.
xxviii. "Interim Housing" means any facility whose primary purpose is to provide a temporary shelter for the Homeless in general or for specific populations identified in this NOFA and which does not require occupants to sign leases or occupancy agreements. Interim Housing is not an eligible use under this NOFA with the exception noted in Section 201.
xxix. “Lead Service Provider” or “LSP” is the organization that has overall responsibility for the provisions of Supportive Services and implementation of the Supportive Services plan in the Project. The LSP may directly provide comprehensive case management services or contract with other agencies that provide services. For HUD-VASH tenants, the LSP will enable the applicable Veterans Affairs Case Manager to administer services in accordance with the HUD-VA Supportive Housing (VASH) Program.
xxx. “Local Public Entity” is defined in accordance with HSC section 50079, and means any county, C ity, City and county, the duly constituted governing body of an Indian reservation or rancheria, T ribally designated housing entity as defined in Section 4103 of Title 25 of the United States Code and Section 50104.6.5, redevelopment agency organized pursuant to Part 1 (commencing with Section 33000) of Division 24, or housing authority organized pursuant to Part 2 (commencing with Section 34200) of Division 24, an d also includes any state agency, public district, or other political subdivision of the state, and any instrumentality thereof, that is authorized to engage in or assist in the development or operation of housing for persons and families of low or moderate income. “Local Public Entity” also includes two or more Local Public Entities acting jointly.
xxxi. “Manager’s Unit” is a unit in which the onsite manager of the Project resides. A Manager’s Unit will not be an Assisted Unit. Manager’s Units may be included for Homekey+ funding under the development budget, however no Manager’s Unit may be included in funding requests for a Homekey+ operating award.
Manager’s Units shall be restricted to households at or below 60% AMI.
xxxii. "NOFA" means this Notice of Funding Availability.
xxxiii. "Operating Expenses" means the amount approved by HCD that is necessary to pay for the recurring expenses of the Project, such as utilities; maintenance; management fees; taxes; licenses; and Supportive Services costs, which may 572
California Department of Housing and Community Development Page 70 Homekey+ Notice of Funding Availability – November 26, 2024 include staffing and service coordination. Operating Expenses do not include debt service or required reserve account deposits.
xxxiv. “Performing Debt” refers to non-government, long-term (or permanent) financing of a Project intended to generate a profit for a private or non- profit lender requiring ongoing mandatory debt service payments.
xxxv. "Permanent Supportive Housing" or “PSH” means housing with no limit on length of stay, that is occupied by the Target Population, and that is linked to onsite or offsite services that assist the supportive housing resident in retaining the housing, improving their health status, and maximizing their ability to live and, when possible, work in the community, as defined at California Government Code Section 65582 (g) , except that "Permanent Supportive Housing" shall include associated facilities if used to provide services to housing residents.
xxxvi. "Point-in-Time Count" or “PIT” means a count of sheltered and unsheltered Homeless persons on a single night conducted by Continuums of Care as prescribed by HUD.
xxxvii. “Positive Youth Development” (PYD) is an intentional, prosocial approach that engages youth within their communities, schools, organizations, peer groups, and families in a manner that is productive and constructive; recognizes, utilizes, and enhances young people’s strengths; and promotes positive outcomes for young people by providing opportunities, fostering positive relationships, and furnishing the support needed to build on their leadership strengths.
xxxviii. "Project" means a structure or set of structures providing housing with common financing, ownership, and management.
xxxix. “Project Ownership Structure” means a Project-specific entity organizational chart that shows the ownership relationship between the Project Applicants and all Project entities (including the special purpose entity). This document is used by HCD to connect the Project Ownership Structure with the provided legal organizational documents (i.e. Operating Agreement, Limited Partnership Agreement, By Laws, etc.) to ensure the Primary Applicant or Co-Applicant has legal control over the Project site.
This is NOT a staff organizational chart. The Project Ownership Structure chart must be provided with the application.
xl. "Rehabilitation" means repairs and improvements to a substandard residential structure necessary to make it meet Rehabilitation standards.
As used in this section, “substandard residential structure” has the same meaning as the term “substandard building,” as defined in HSC Section 17920.3. “Rehabilitation” also includes improvements and repairs made to a residential structure acquired for the purpose of preserving its affordability and use by the Target Population.
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California Department of Housing and Community Development Page 71 Homekey+ Notice of Funding Availability – November 26, 2024 xli. “Renewable Sources” means funding sources that are dependent upon future budget allocations, competitive applications, or are in the process of being allocated. Per UMR Section 8310 (i) HCD may assume funds may be renewed, where the renewal of the rental assistance or operating assistance is likely. The Homekey+ Program will evaluate the following to determine whether renewal is likely:
a. The number of years that the funding has been renewed and/or that the Homekey+ Applicant has received the renewal; and
b. Any back-stop funds or alternative funds the Project may utilize should the funds fail to renew.
xlii. “Rural Area” in accordance with HSC Section 50199.21, means an area, which, on January 1 of any calendar year satisfies any of the following criteria:
a. The area is eligible for financing under the Section 515 program, or successor program, of the Rural Development Administration of the United States Department of Agriculture.
b. The area is located in a nonmetropolitan area as defined in HSC Section 50090; or
c. The area is either:
i. An incorporated City having a population of 40,000 or less as identified in the most recent Report E-1 published by the Demographic Research Unit of HCD of Finance; or
ii. An unincorporated area which adjoins a City having a population of 40,000 or less, provided that the City and its adjoining unincorporated area are not located within a census tract designated as an urbanized area by the United States Census Bureau. HCD shall assist in determinations of eligibility pursuant to this subdivision upon request.
With respect to areas eligible under subdivision (b) and this subdivision, the committee may rely upon the recommendations made by HCD. Any inconsistencies between areas eligible under subdivisions (a) and (b), and this subdivision, shall be resolved in favor of considering the area a Rural Area. Eligible and ineligible areas need not be established by regulation.
xliii. “Secondary Tenant ” is defined as 1) Veterans who are H omeless whose incomes are up to 50% AMI and are receiving income as a result of service- connected disability benefits, or 2) Veterans experiencing homelessness with an income of up to 60% AMI.
xliv. “Severely Rent-Burdened” means being Extremely Low-Income (under 30% AMI) and paying more than 50% of income for rent.
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California Department of Housing and Community Development Page 72 Homekey+ Notice of Funding Availability – November 26, 2024 xlv. “Sponsor” means the definition of “Sponsor” at UMR Section 8301(s), which is: the legal entity or combination of legal entities with continuing control of the Project. Where the borrowing entity is or will be organized as a limited partnership, Sponsor includes the general partner or general partners who have effective control over the operation of the partnership, or, if the general partner is controlled by another entity, the controlling entity. Sponsor does not include the seller of the property to be developed as the Project, unless the seller will retain control of the Project for the period of time necessary to ensure Project feasibility as determined by the Department.
xlvi. “Standard Agreement” means the STD 213, Standard Agreement, and all exhibits thereto.
xlvii. “Supportive Services” means social, health, educational, income support, employment, and housing stability services and benefits; coordination of community building and educational activities; individualized needs assessment and case management; and individualized assistance with obtaining services and benefits.
xl. "Target Population" means individuals, or households with an individual, who are experiencing homelessness or who are At Risk of Homelessness as defined under part 578.3 of Title 24 of the Code of Federal Regulations and who have or are suspected of having a Behavioral Health Challenge.
These individuals and households must include a person described in subdivision (c) or (d) of Section 14184.402, or a person with a substance use disorder, as described in Section 5891.5. However, enrollment in Medi- Cal or in any other health plan shall not be a condition for accessing housing or continuing to be housed. For Veteran-serving Projects the Target Population also includes Veterans.
xli. “Tribal Entity(ies)” means an Applicant that is any of the following:
a. Applicant meets the definition of Indian Tribe under Section 4103(13)(B) of Title 25 of the United State Code.
b. Applicant meets the definition of Tribally Designated Housing Entity under 25 USC 4103(22).
c. If not a federally recognized Tribe, either:
i. Applicant is listed in the Bureau of Indian Affairs Office of Federal Acknowledgement petitioner list pursuant to Section 82.1 of Title 25 of the Federal Code of Regulations.
ii. Applicant is an Indian Tribe located in California that is on the contact list maintained by the Native American Heritage Commission for the purposes of consultation pursuant to Section 65352.3 of the Government Code.
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California Department of Housing and Community Development Page 73 Homekey+ Notice of Funding Availability – November 26, 2024
iii. Has organized a separate legal entity, either a non-profit or for- profit entity, in compliance with CCR Title 25, Section 8301(s) and it has demonstrated to the satisfaction of the Department that the separate legal entity is controlled by the Tribal Applicant.
xlii. "Unit" means a residential unit that is used as a primary residence by its occupants, including individual units within the Project.
xliii. “Veteran” means a person who served in the active military, naval, or air service, and who was discharged or released under conditions other than dishonorable and who is experiencing or at risk of homelessness as defined in Title 24 CFR Part 578.3.
xliv. “Youth Assisted Unit” means an Assisted Unit serving Homeless Youth, or Youth at Risk of Homelessness, as defined in Title 24 CFR Part 578.3.
Pursuant to Section 203, Youth Assisted Units may also serve current and former Foster Youth through the age of 25.
xlv. “Youth at Risk of Homelessness” means a child, youth, or current or former Foster Youth through the age of 25 who qualifies as “At Risk of Homelessness” or “Homeless” under any of the relevant definitions set forth or identified at Part 578.3 of Title 24 of the Code of Federal Regulations.
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California Department of Housing and Community Development Page 74 Homekey+ Notice of Funding Availability – November 26, 2024 APPENDIX A: Homekey+ Capital Contributions
Assisted Unit,
1:1 Match
Homekey+ Capital Contributions
Total Cost
Per Door *
Maximum
Homekey+
Contribution
Applicant
Contribution
Homekey+ Target Population
and Manager’s Units
$180,000 $180,000 $0
$190,000 $190,000 $0
$200,000 $200,000 $0
$220,000 $210,000 $10,000
$240,000 $220,000 $20,000
$260,000 $230,000 $30,000
$280,000 $240,000 $40,000
$300,000 $250,000 $50,000
$320,000 $260,000 $60,000
$340,000 $270,000 $70,000
$360,000 $280,000 $80,000
$380,000 $290,000 $90,000
$400,000+ $300,000 $100,000+
* The total cost per door referenced in the table above includes all eligible capital expenses, including acquisition, Rehabilitation, and new construction costs.
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California Department of Housing and Community Development Page 75 Homekey+ Notice of Funding Availability – November 26, 2024 APPENDIX B: Homekey+ Organizational Document Requirements
Documents to submit with Application
Needed to
pass
Threshold
Needed to
pass
Feasibility
All Applicants Certification & Legal Disclosure x
Signature Block (in Word document format) x
Payee Data Record (STD 204) (except jurisdictions) x
EIN Verification (IRS form SS-4) (except jurisdictions) x Tax-Exempt Status from IRS and FTB (if applicable) x
Eligible Applicant or Co-
Applicant Project Ownership Structure (only one needed) x Eligible Applicant Authorizing Resolution x
(Jurisdiction) Taxpayer Identification Number (FI$Cal TIN Form) x Tribal Entity Authorizing Resolution x
Tribe Formation Documents (constitution, charters, etc.) x Federal Register of Indian Entities Recognized (if applicable) x Corporation Authorizing Resolution x
Articles of Incorporation x
Certificate of Amended Articles of Incorporation, if applicable x Corporate Bylaws (all amendments and/or restatements) x Restated Articles of Incorporation x
Cert of Good Standing (dated within 30 days of app due date) x Statement of Information x
Shareholder Agreements (if applicable) x
Limited Liability
Company Authorizing Resolution x
Articles of Organization including restatements (LLC-1) x Certificate of Amended Articles of Organization (LLC-2) if applicable x Operating Agreement x
Cert of Good Standing (dated within 30 days of app due date) x Limited Partnership Authorizing Resolution x
Certificate of Limited Partnership (LP-1) x
Amendment to Certificate of Limited Partnership (LP-2) x Limited Partnership Agreement x
Cert of Good Standing (dated within 30 days of app due date) x LLC: Manager of LLC See org doc requirement based on organization type x if applicable
Limited Partnership: MGP See org doc requirement based on organization type x Limited Partnership: AGP See org doc requirement based on organization type x 578
California Department of Housing and Community Development Page 76 Homekey+ Notice of Funding Availability – November 26, 2024
Documents to submit with Application
Needed to
pass
Threshold
Needed to
pass
Feasibility
Limited Partnership: LP or
GP See org doc requirement based on organization type x
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California Department of Housing and Community Development Page 77 Homekey+ Notice of Funding Availability – November 26, 2024 APPENDIX C: Homekey+ Streamlining
State of California Health and Safety Code Section 50675.1.5: Streamlined Ministerial Review Process (excerpt from Homekey+ authorizing statute)
50675.1.5. (a) (1) Notwithstanding any other law, projects to provide housing pursuant to paragraph (1) or (2) of subdivision (a) of Section 5965.04 of the Welfare and Institutions Code, shall be a use by right and shall be subject to the streamlined, ministerial review process, pursuant to subdivision (b), if it meets all of the following criteria:
(A) It is located in a zone where multifamily residential use, office, retail, or parking are a principally permitted use.
(B) At least 75 percent of the perimeter of the site adjoins parcels that are developed with urban uses.
(C) It satisfies the requirements specified in subparagraphs (B) to (K), inclusive, of paragraph (6) of subdivision (a) of Section 65913.4 of the Government Code. (D) It is not on a site or adjoined to any site where more than one-third of the square footage on the site is dedicated to industrial use.
(E) The development will meet the following objective zoning standards, objective subdivision standards, and objective design review standards:
(i) The applicable objective standards shall be those for the zone that allows residential use at a greater density between the following:
(I) The existing zoning designation for the parcel if existing zoning allows multifamily residential use.
(II) The zoning designation for the closest parcel that allows residential use at a density deemed appropriate to accommodate housing for lower income households in that jurisdiction as specified in paragraph (3) of subdivision (c) of Section 65583.2 of the Government Code.
(ii) The applicable objective standards shall be those in effect at the time that the development application is submitted to the local government pursuant to this section. (iii) A development proposed pursuant to this section shall be eligible for the same density bonus, incentives or concessions, waivers or reductions of development standards, and parking ratios applicable to a project that meets the criteria specified in subparagraph (G) of paragraph (1) of subdivision (b) of Section 65915 of the Government Code. (F) No housing units were acquired by eminent domain.
(G) The housing units will be in decent, safe, and sanitary condition at the time of their occupancy.
(H) The project meets the labor standards contained in Sections 65912.130 and 65912.131 of the Government Code.
(I) The project provides housing for persons who meet the criteria specified in subdivision (a) of Section 5830 of the Welfare and Institutions Code and their families. (J) Long-term covenants and restrictions require the housing units to be restricted to persons who meet the criteria specified in subdivision (a) of Section 5830 of the Welfare and Institutions Code for no fewer than 30 years.
(2) (A) For purposes of this subdivision, parcels only separated by a street or highway shall be considered to be adjoined.
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California Department of Housing and Community Development Page 78 Homekey+ Notice of Funding Availability – November 26, 2024 (B) For purposes of this subdivision, “dedicated to industrial use” means any of the following:
(i) The square footage is currently being used as an industrial use. (ii) The most recently permitted use of the square footage is an industrial use. (iii) The site was designated for industrial use in the latest version of a local government’s general plan adopted before January 1, 2022.
(b) The project shall be subject to the following streamlined, ministerial review process:
(1) (A) If the local government determines that a development submitted pursuant to this section is consistent with the objective planning standards specified in this section, it shall approve the development.
(B) If a local government determines that a development submitted pursuant to this section is in conflict with any of the objective planning standards specified in this section, it shall provide the development proponent written documentation of which standard or standards the development conflicts with, and an explanation for the reason or reasons the development conflicts with that standard or standards, within the following timeframes:
(i) Within 60 days of submission of the development proposal to the local government if the development contains 150 or fewer housing units.
(ii) Within 90 days of submission of the development proposal to the local government if the development contains more than 150 housing units.
(C) If the local government fails to provide the required documentation pursuant to subparagraph (B), the development shall be deemed to satisfy the required objective planning standards.
(D) (i) For purposes of this section, a development is consistent with the objective planning standards if there is substantial evidence that would allow a reasonable person to conclude that the development is consistent with the objective planning standards. (ii) For purposes of this section, a development is not in conflict with the objective planning standards solely on the basis that application materials are not included, if the application contains substantial evidence that would allow a reasonable person to conclude that the development is consistent with the objective planning standards. (E) The determination of whether a proposed project submitted pursuant to this section is or is not in conflict with the objective planning standards is not a “project” as defined in Section 21065 of the Public Resources Code.
(2) Design review of the development may be conducted by the local government’s planning commission or any equivalent board or commission responsible for design review.
That design review shall be objective and be strictly focused on assessing compliance with criteria required for streamlined, ministerial review of projects, as well as any reasonable objective design standards published and adopted by ordinance or resolution by a local jurisdiction before submittal of the development to the local government and shall be broadly applicable to developments within the jurisdiction. That design review shall be completed as follows and shall not in any way inhibit, chill, or preclude the ministerial approval provided by this section or its effect, as applicable:
(A) Within 90 days of submittal of the development proposal to the local government pursuant to this section if the development contains 150 or fewer housing units. (B) Within 180 days of submittal of the development proposal to the local government pursuant to this section if the development contains more than 150 housing units. 581
California Department of Housing and Community Development Page 79 Homekey+ Notice of Funding Availability – November 26, 2024 (c) Division 13 (commencing with Section 21000) of the Public Resources Code shall not apply to actions taken by HCD of Housing and Community Development, the State Department of Health Care Services, or a local agency to provide financial assistance or insurance for the development and construction of projects built pursuant to this section. (d) The applicant shall file a notice of exemption with the Office of Planning and Research and the county clerk of the county in which the project is located in the manner specified in subdivisions (b) and (c) of Section 21152 of the Public Resources Code. (e) For purposes of this section, the following definitions shall apply:
(1) “Objective zoning standards,” “objective subdivision standards,” and “objective design review standards” mean standards that involve no personal or subjective judgment by a public official and are uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official before submittal. These standards may be embodied in alternative objective land use specifications adopted by a City or county, and may include, but are not limited to, housing overlay zones, specific plans, inclusionary zoning ordinances, and density bonus ordinances.
(2) “Use by right” means a development project that satisfies both of the following conditions:
(A) The development project does not require a conditional use permit, planned unit development permit, or other discretionary local government review. (B) The development project is not a “project” for purposes of Division 13 (commencing with Section 21000) of the Public Resources Code.
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California Department of Housing and Community Development Page 80 Homekey+ Notice of Funding Availability – November 26, 2024 APPENDIX D: Homekey+ Grantee Publicity Guidelines
Grantees are required to acknowledge HCD in all publications, websites, signage, invitations, and other media-related and public-outreach products and events related to the Homekey+ Project. HCD staff will provide their respective logo file(s) and guidance on their usage directly to the Grantees.
i. Long-form written materials, such as reports, must include the following standard language about HCD and Homekey+:
a. Housing stability is vital to mental health wellness. With safe, affordable housing and Supportive Services to address Behavioral Health Challenges California’s most vulnerable residents will have the foundation they need to thrive. With funding allocated from the passage of Proposition 1 and HHAP Supplemental funds, HCD will expand on the success of its Homekey program through Homekey+ to help support the development of PSH for Veterans and individuals (or households with individuals) who are At Risk of or experiencing homelessness and with mental health or substance use challenges.
ii. Informational materials that do not qualify as long-form, but include at least a paragraph of text, such as press releases, media advisories, short case studies, some flyers, etc., should include the following language:
a. Long version: Homekey+ is funded by almost $2.145 billion from Proposition 1 bond and HHAP supplemental funds, allowing HCD to expand on the success of its Homekey program to help support the development of Permanent Supportive Housing for Veterans and individuals At Risk of or experiencing homelessness and with mental health or substance use challenges.
b. Short version: Funded by Proposition 1 and HHAP, Homekey+ creates Permanent Supportive Housing for Californians with Behavioral Health Challenges.
iii. Grantees may at times produce promotional materials that are primarily visual in nature, such as banners, signage, certain flyers, and sharable images for social media. In such cases, when including the boilerplate language acknowledging Homekey+ support is not practical, Grantees should instead include the official logo of HCD preceded by the words “Funded by.”
iv. Grantees are required to identify a point of contact for all press inquiries and communications needs related to the Project and provide the name, phone number, and email address of this individual to HCD.
583
California Department of Housing and Community Development Page 81 Homekey+ Notice of Funding Availability – November 26, 2024 v. Grantees are encouraged to distribute a press release after grant decisions are made public by the HCD or Governor’s Office and any embargo lifted, and for other major milestones throughout the lifecycle of the Project. All press releases must be approved by HCD prior to distribution, and HCD must be alerted and invited to participate in any and all groundbreakings, grand openings, and press conferences related to the Award by emailing HCD [email protected]
.
vi. Grantees are required to prepare one or more two- to four-page documents that provide a summary of the Project components and tell the story of the Homekey+ development process and/or implementation. All such materials must be approved by HCD prior to distribution. These materials may be displayed on the Homekey+ website.
vii. Applicants and Grantees are encouraged to use social media to share the process of creating a Homekey+ proposal and to inform the public throughout implementation. @California_HCD and @CAbcsh should be tagged on all posts related to the Homekey+ grant. Use of the hashtags #Homekey+ and #WhereFoundationsBegin is encouraged.
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H OM
E K E Y + A T A G L A N C E
F U N D S A V A I L A B L E
Proposition 1 authorizes approximately
$2 billion of which approximately $1 billion
is for Veterans
Local public entities (includes cities,
counties, and public housing
authorities)
Tribal entities
Housing developers
E L I G I B L E A P P L I C A N T S
www.hcd.ca.gov/Homekey+
W A N
T
T O
L E A R N
M OR
E ?
Housing stability is vital to mental health wellness and well- being. Safe, affordable housing, paired with supportive services to address behavioral health challenges, can provide California’s most
vulnerable residents with the foundation they need to
thrive.
Homekey+ is the permanent housing component of the
Behavioral Health Infrastructure Bond Act, part of Proposition 1 passed by California voters in March 2024. With funding allocated from the Bond Act, the California Department of Housing and Community Development (HCD), in partnership with CalVet, will expand the successful Homekey Program and honor the State’s long-standing commitment to housing
veterans to help support the development of permanent
affordable housing with supportive services for veterans and individuals with mental health or substance use challenges who are at risk of, or experiencing, homelessness.
P
R O G R A M O V E R V I E W
Homekey+ will be modeled on HCD’s successful Homekey
program, which emphasizes the acquisition and rehabilitation of existing buildings, or other project types including new construction, that can be quickly converted or constructed for permanent affordable housing, generally within 12 months of award. Since its inception, Homekey has funded 250 projects and over 15,300 affordable homes. Homekey+ will move quickly by making awards on a rolling basis, as applications are received. Applications will be assessed on project readiness, experience in developing and providing supportive services to eligible prospective tenants/residents, funding commitments that provide long term sustainable support (particularly BHSA ongoing funding), and project location, among other criteria.
E
L I G I B L E U S E S
Homekey+ will provide applicants the flexibility to take advantage of opportunities available within their specific communities that will result in the speedy acquisition and availability of new homes with a focus on cost containment. It will also finance new construction for projects that can be built quickly in a cost-efficient manner.
Examples of eligible uses include acquisition and rehabilitation of existing sites (e.g. hotels/motels, apartments), commercial properties, master leasing, new construction, and the purchase of affordability covenants.
[email protected]
View program overview webinar
sign up for email updates
Homekey+ Program Factsheet
585
Veterans and other individuals with a behavioral health challenge who are at- risk of, or experiencing, homelessness.
P O P U L A T I O N S S E R V E D
A N T I C I P A T E D D I S T R I B U T I O N O F F U N D S
1. Coordinate with county mental health or behavioral health departments, local HUD Continuum of Care (CoC) entity, local Managed Care Plans and the United States Department of Veterans Affairs (USDVA), as applicable to identify needs, gaps, and opportunities.
2. Identify and obtain commitments of sustainable funding sources including existing MHSA and future BHSA funding
3. Identify sites or buildings for acquisition or development To promote an equitable distribution of funds, the Program will create regional targets, based on need.
Tribal entities and homeless youth will also have specified funding goals. “Veteran”, for the purposes of this program, is defined as a person who served in the active military, naval, or air service, and who was discharged or released under conditions other than dishonorable. “Homelessness, chronic homelessness, or at risk of homelessness” has the same meaning as defined by the
24 Code of Federal Regulations Section 578.3
“Behavioral health challenge” has the same meaning as defined within the California Welfare and Institutions Code to mean a serious mental illness, as described in subdivision (c) or (d) of Section 14184.402, or a substance use disorder, as described in Section 5891.5.
P O
T E N T I A L A P P L I C A N T S S H O U L D T A K E T H E F O L L O W I N G S T E P S I N
P R E P A R A T I O N O F S U B M I T T I N G A N A P P L I C A T I O N
4. Solidify partnership of housing and services teams
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589
AUTHORIZING RESOLUTION
RESOLUTION NO. 2025-02
CRESCENT MEADOWS PROJECT
A RESOLUTION OF THE GOVERNING BODY OF CITY OF VISALIA AUTHORIZING JOINT APPLICATION TO AND PARTICIPATION IN THE HOMEKEY+ PROGRAM
WHEREAS:
A. The Department of Housing and Community Development (“HCD”) has issued a Notice of Funding Availability, dated November 26, 2024 (“NOFA”), for the Homekey+ Program (“Homekey+” or “Program”). HCD has issued the NOFA for Homekey+ grant funds pursuant to Heal th and Safety Code Section 50675.1.3 (Assem. Bill No. 140 (2021 -2022 Reg. Sess.), § 20.); Health and Safety Code Section 50675.1.5 (Assem. Bill No. 531 (2023 -2024 Reg. Sess.); Section 14184.402 of the Welfare and Institutions Code; Section 5891.5 of the Welfare and Institutions Code; and Round 5 and 6 of the Homeless Housing, Assistance and Prevention (HHAP) grant program. (Assem. Bill No. 129 (Chapter 40, Statutes 2023) and Assem. Bill No. 166 (Chapter 48, Statutes 2024), respectively.
B. CITY OF VISALIA (“Applicant”) desires to jointly apply for Homekey grant funds with CRESCENT MEADOWS, L.P. (“Co-Applicant”). Therefore, Applicant is joining Co-Applicant in the submittal of an application for Homekey+ funds (“Application”) to HCD for review and consideration.
C. HCD is authorized to administer Homekey+ pursuant to the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2 of Division 31 of the Health and Safety Code). Homekey + funding allocations are subject to the terms and conditions of the NOFA, the Application, the Department - approved STD 213, Standard Agreement (“ Standard Agreement ”), and all other legal requirements of the Homekey+ Program.
THEREFORE, IT IS RESOLVED THAT:
1. Applicant is hereby authorized and directed to submit a joint Application to HCD in response to the NOFA, and to jointly apply for Homekey+ grant funds in a total amount not to exceed $12,000,000.
2. If the Application is approved, Co-Applicant is hereby authorized and directed to enter into, execute, and deliver a Standard Agreement in a total amount not to exceed $12,000,000, any and all other documents required or deemed necessary or appropriate to secure the Homekey + funds from HCD and to participate in the Homekey + Program, and all amendments thereto (collectively, the “Homekey+ Documents”).
3. Applicant acknowledges and agrees that it shall be subject to the terms and conditions specified in the Standard Agreement, and that the NOFA and 590
Application will be incorporated in the Standard Agreement by reference and made a part thereof. Any and all activities, expenditures, information, and timelines represented in the Application are enforceable through the Standard Agreement. Funds are to be used for the allowable expenditures and activities identified in the Standard Agreement.
4. The Mayor is authorized to execute the Application and the Homekey + Documents on behalf of Applicant for participation in the Homekey+ Program.
PASSED AND ADOPTED this 3rd day of February, 2025, by the following vote:
AYES: [ _] NAYES: [ _] ABSTAIN: [ _] ABSENT: [ _]
The undersigned, Leslie Caviglia, City Manager of Applicant, does hereby attest and certify that the foregoing is a true and full copy of a resolution of the governing body adopted at a duly convened meeting on the date above-mentioned, and that the resolution has not been altered, amended, or repealed.
SIGNATURE: ________________________ DATE: _____________________
NAME: _____________________________ TITLE: _____________________
591
Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 24-0580 Agenda Date: 2/3/2025 Agenda #: 8.
Agenda Item Wording:
Execution of Southern California Edison Easement: Authorize the City Manager to execute Southern California Edison anchor easements and adopt Resolution 2025-03 for the Riggin Widening Project from Kelsey St. to Shirk St. (Resolution required) Deadline for Action: 2/3/2025
Submitting Department: Community Development
Contact Name and Phone Number:
Diego Corvera, Senior Civil Engineer, [email protected], 559-713-4209 Jim Koontz, City Attorney, [email protected] <mailto:[email protected]>, 559-372-2403 Chris Crawford, City Engineer, [email protected] 559-713-4331 Jason Huckleberry, Engineering and Building Department Director, [email protected], 713-4495
Department Recommendation:
Staff recommends that the City Council authorize the City Manager to execute the Southern California Edison (SCE) anchor easement (Serial no. 73622A) and adopt Resolution 2025-xx as required for the transmission pole relocation at Riggin Avenue and Shirk Street intersection to accommodate the Riggin Widening Project Kelsey St. to Shirk St. These easements were prepared by the City of Visalia, accepted by Southern California Edison and reviewed and approved by the City Attorney.
Background Discussion:
The purpose of the Riggin Widening Project Kelsey St. to Shirk St. is to increase vehicle capacity on Riggin Avenue by adding additional lanes and to provide for an efficient flow of traffic to support growing industrial development within the surrounding area. The City Council identified this segment of Riggin Avenue as a priority transportation corridor and to advance its construction through the use of Measure R Regional Bond Funds at the December 3, 2019 City Council Work Session meeting.
Before any roadway construction can begin the Southern California Edison (SCE) transmission poles in conflict with the project will need to be relocated to their ultimate location. This anchor easement will establish the area necessary for anchor support infrastructure that is required for the relocation of the transmission poles surrounding the Riggin Ave. and Shirk St. intersection. This easement needs to be executed and recorded to mobilize SCE crews to relocate their facilities.
Project Status
Riggin Widening Project Kelsey St. to Shirk St. is currently at 100% design and ready for advertisement. Environmental phase and ROW phase have been completed and federal construction funding has been obligated. Utility relocation is anticipated to begin in February of 2025 with road Visalia City Council Printed on 1/30/2025Page 1 of 4
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File #: 24-0580 Agenda Date: 2/3/2025 Agenda #: 8.
funding has been obligated. Utility relocation is anticipated to begin in February of 2025 with road construction in Q1 2025.
Fiscal Impact:
There is no fiscal impact at this time. Council previously approved on August 5, 2024, the agreement with SCE that established financial responsibility of the cost to relocate the transmission poles associated with the Riggin Avenue Widening Project Kelsey St. to Shirk St. Below is the project budget breakdown for reference.
Riggin Avenue Widening Project Kelsey St. to Shirk St. Budget Project Budget
Measure R Regional Funds (Fund 133) $1,700,000.00
Traffic Impact Fee (Fund 241) $4,775,000.00
Economic Development Administration Grant$4,000,000.00
Total Project Funding $10,475,000.00
Estimated Project Costs:
Project Management $150,000.00
Design Services $375,000.00
Acquisition Services $50,000.00
Land Acquisition (Right-of-way) $1,150,000.00
Utility Relocation (SCE relocation Agreement)$1,081,000.00 Construction (Estimate) $9,071,445.00
Construction Contingency (~10% of Construction)$1,000,000.00 Construction Management ~(3.5%) $259,369.23
Construction Services (Material Testing, Inspection, Survey) ~ (7.5%)$680,358.38 Total Estimated Project Costs: $13,817,172.61
Surplus (Deficit) ($3,342,173)
Although the project cost estimate for the Riggin Ave Widening project currently identifies a budget deficit, construction for this project has not yet been awarded. Staff will return to Council at the time of construction award and request additional funds as necessary to complete construction.
Prior Council Action:
December 3, 2024
Authorized the City manager to finalize the two (2) draft Southern California Edison Joint Use Agreement’s,then execute the two (2) finalized agreements and adopt Resolution 2024-66 for the Riggin Widening Project Kelsey St. to Shirk St. and Resolution 2024-67 for the Carlton Acres Commercial Project at the northeast corner of said intersection.
October 21, 2024
Authorized the City Manager to execute an agreement with NV5, Inc. to provide construction management services for two City Projects 1) Shirk Street Capacity Enhancement Project from School Ave to Riggin Ave and 2) Riggin Avenue Widening Kelsey St to Shirk St in the amount of Visalia City Council Printed on 1/30/2025Page 2 of 4
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File #: 24-0580 Agenda Date: 2/3/2025 Agenda #: 8.
School Ave to Riggin Ave and 2) Riggin Avenue Widening Kelsey St to Shirk St in the amount of $545,707.60 & $259,369.23 respectively, combined total of $805,076.83.
August 5, 2024
Council authorized the execution of Southern California Edison (SCE) Facilities Relocation Agreement for $1,081,000.00 and adopt resolution 2024-46 for the Riggin Avenue Widening Project Kelsey St to Shirk St. Project.
October 17, 2022
Council accepted grant award from the U.S. Economic Administration (EDA) for $4,000,000 and executed the EDA grant agreement for the construction of Riggin Avenue Widening project from Kelsey St to Shirk St.
March 21, 2022
Adopted resolution No. 2022-09 certifying Mitigated Negative Declaration No. 2021-62 prepared for CEQA compliance as part of the Economic Development Administration (EDA) ARPA Grant for construction of the Riggin Widening Project from Kelsey Street to Shirk Street (State clearing house No. 2022010046) (Resolution No. 2022-09 required).
March 15, 2021
Conference with Real Property Negotiators (Pursuant to G.C. Section 54956.8 Property: Portion of APN 077-200-006 generally located at the northwest corner of the intersection of Riggin Avenue and Shirk Street.
Conference with Real Property Negotiators (Pursuant to G.C. Section 54956.8 Property: Portion of APN 077-100-088 generally located at the northeast corner of the intersection of Riggin Avenue and Shirk Street.
Conference with Real Property Negotiators (Pursuant to G.C. Section 54956.8 Property: Portion of APN 077-480-001 generally located at the northwest corner of the intersection of Riggin Avenue and Kelsey Street.
September 8, 2020
Conference with Real Property Negotiators (Pursuant to G.C. Section 54956.8 Property: Portion of APN 077-480-001 generally located at the northwest corner of the intersection of Riggin Avenue and Kelsey Street.
Other:
None
Alternatives:
None Recommended
Recommended Motion (and Alternative Motions if expected):
I move to authorize the City Manager to execute Southern California Edison anchor easements and adopt Resolution 2025-03 for the Riggin Widening Project from Kelsey St. to Shirk St.
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File #: 24-0580 Agenda Date: 2/3/2025 Agenda #: 8.
Environmental Assessment Status:
Mitigated Negative Declaration No. 2019-73.
Attachments:
1. SCE anchor easement serial no. 73622A
2. Resolution No. 2025-03 SCE Anchor Easement serial no. 73622A
3. SCE Transmission Pole Relocation Map - Riggin Widening Project
4. Location Map
Visalia City Council Printed on 1/30/2025Page 4 of 4
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RECORDING REQUESTED BY
SOUTHERN CALIFORNIA EDISON COMPANY
WHEN RECORDED MAIL TO
SOUTHERN CALIFORNIA EDISON COMPANY
2 INNOVATION WAY – 2ND FLOOR
POMONA, CA 91768
ATTN: TITLE & REAL ESTATE SERVICES
ANCHOR EASEMENT
SPACE ABOVE THIS LINE FOR RECO RD ER 'S USE
DOCUMENTARY TRANSFER TAX $_____________________ Serial No. 73622A Service Order No. 802348727
Location: City of Visalia
A.P.N.: 077-200-006
V&LM File: ACQ204287239
SCE Doc No.: 531851
___________COMPUTED ON FULL VALUE OF PROPERTY CONVEYED
___________OR COMPUTED ON FULL VALUE LESS LIENS AND
ENCUMBRANCES REMAINING AT TIME OF SALE
SO. CALIF. EDISON CO.
SIGNATURE OF DECLARANT OR AGENT DETERMINING TAX FIRM NAME Approved
Vegetation &
Land Management
BY SF DATE 07/16/2024
CITY O F VISALIA, a mun icipal corporation, does he reby grant to SOUTHERN CALIFORNIA EDISON COMPANY, a corporation, its successors and assigns, (hereinafter referred to as "Grantee"), an easement to const ruct, use, maintain, alter, add to, repair, replace, inspect, relocate and/or remove at any time and fr om time to time, stub poles, guy wires, anchors and other appurtenant fixtures and/or equipment needed for anchorage purposes (hereinafter referred to as "Grantee’s Facilities"), in, on, over and across two (2) strips of land three (3.00) feet wide (the “Easement Area’s”) lying within that certain real property of the Grantor, situated in the County of T ulare, State of California, described as follows:
That portion of Lot B of Pheasant Ridge Unit No. 7, Phase 1, in the City of Visalia, County of Tulare, State of California, filed in Book 43, Page 48 of Tract Maps, in the Office of the County Recorders of said County; and
That portion of Lot A of Pheasant Ridge Unit No. 7, Phase 2 & 3 , in the City of Visalia, County of Tulare, State of California , filed in Book 43, Page 65 of Tract Maps , in the Office of the County Recorders of said County.
The Easement Area’s are more particularly described on the Exhibit “A” and more particularly shown on the Exhibit “B” both attached hereto and by this reference made a part hereof.
The Grantee shall have free access to said facilities, and every part thereof, at all times, for the purpose of exercising the rights herein granted.
EXECUTED this _______ day of _____________________ , 20_______.
CITY OF VISALIA, a municipal corporation
By
Name
Its
By
Name
Its
596
Anchor Easement
City of Visalia to
S.C.E., a corp.
Serial No. 73622A
V&LM File No. ACQ204287239
2 A Notary Public or other officer completing this certificate verifies only t he identity of the individual who signed the doc ument to which this certificate is attached, and not the truthfulness, accuracy, o r validity of that document.
State of California )
County of )
On _______________________ before me, , a Nota ry Public, personally appeared , who proved to me on the
basis of satisfactor y evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they exec uted the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person (s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY unde r the laws of the State of California that the f oregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature _______________________________
597
Anchor Easement
City of Visalia to
S.C.E., a corp.
Serial No. 73622A
V&LM File No. ACQ204287239
3 A Notary Public or other officer completing this certificat e verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthful ness, accuracy, or validity of that document.
State of California )
County of )
On _______________________ before me, , a Notary Public, personally appeared , who proved to me on the
basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to m e that he/she/they executed the same in his/her /their authorized capacity(ies), and that by his/her/their signature(s) on the inst rument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of Cal ifornia that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature _______________________________
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WO# 802348727 NOT# 207287239
EXHIBIT "A"
LEGAL DESCRIPTION
SERIAL NO. 73622A
ANCHOR EASEMENT
PORTIONS OF SECTION 22, TOWNSHIP 18 SOUTH, RANGE 24 EAST, MOUNT DIABLO
MERIDIAN ACCORDING TO THE OFFICIAL PLAT THEREOF ON FILE WITH THE BUREAU
OF LAND MANAGEMENT, BEING A PORTION OF LOT B AS SHOWN ON THE MAP OF PHEASANT RIDGE UNIT NO. 7, PHASE 1, FILED IN BOOK 43 OF MAPS AT PAGE 48, AND LOT A AS SHOWN ON THE MAP OF PHEASANT RIDGE UNIT NO. 7, PHASE 2 & 3, FILED IN BOOK 43 OF MAPS AT PAGE 65, BOTH IN THE OFFICE OF THE COUNTY RECORDER
OF COUNTY OF TULARE, STATE OF CALIFORNIA, SAID PORTIONS BEING DESCRIBED AS FOLLOWS:
PARCEL “A”:
COMMENCING AT THE NORTHWEST CORNER OF SAID SECTION 22, ALSO BEING THE NORTHEAST CORNER OF SECTION 21;
THENCE ALONG THE EAST LINE OF THE NORTHEAST QUARTER OF SAID SECTION 21, SOUTH 0°01′08″ EAST, AS SHOWN IN THE GRANT DEED RECORDED AS DOCUMENT NO. 2022-0031242, OFFICIAL RECORDS TULARE COUNTY, A DISTANCE OF 740.12 FEET; THENCE SOUTH 89°44′33″ EAST, A DISTANCE OF 55.00 FEET TO A POINT ON THE EAST RIGHT OF WAY LINE OF SHIRK STREET, AND THE WEST LINE OF SAID LOT B;
THENCE ALONG SAID RIGHT OF WAY LINE, AND SAID WEST LINE OF LOT B, SOUTH 0°01′08″ EAST, A DISTANCE OF 13.50 FEET TO A POINT BEING THE POINT OF BEGINNING;
THENCE NORTH 89°58′52″ EAST, A DISTANCE OF 5.00 FEET;
THENCE SOUTH 0°01′08″ EAST, A DISTANCE OF 3.00 FEET;
THENCE SOUTH 89°58′52″ WEST, A DISTANCE OF 5.00 FEET TO SAID EAST RIGHT OF WAY LINE AND THE AFOREMENTIONED WEST LINE OF LOT B;
THENCE ALONG SAID RIGHT OF WAY LINE AND WEST LINE OF LOT B, NORTH 0°01′08″ WEST, A DISTANCE OF 3.00 FEET TO THE POINT OF BEGINNING.
PARCEL “A” CONTAINS 15 SQUARE FEET, MORE OR LESS.
PARCEL “B”:
COMMENCING AT THE NORTHWEST CORNER OF SAID SECTION 22, ALSO BEING THE NORTHEAST CORNER OF SECTION 21, AND THE SOUTHWEST CORNER OF SECTION 15 OF SAID TOWNSHIP;
THENCE ALONG THE COMMON LINE BETWEEN SAID SECTIONS 15 AND 22, SOUTH 89°56′08″ EAST, SHOWN AS NORTH 89°56′08″ WEST IN THE GRANT DEED 599
SERIAL NO. 73622A
PAGE 2 OF 2
WO# 802348727 NOT# 207287239
RECORDED AS DOCUMENT NO. 2021-0094165, OFFICIAL RECORDS TULARE COUNTY, A DISTANCE OF 875.08 FEET;
THENCE SOUTH 0°00′26″ EAST, A DISTANCE OF 46.15 FEET TO A POINT ON A NON-
TANGENT CURVE ON THE SOUTH RIGHT OF WAY LINE OF RIGGIN AVENUE, AND THE
NORTH LINE OF SAID LOT A, A RADIAL BEARING TO SAID POINT BEING SOUTH 5°15′14″ EAST, SAID CURVE BEING CONCAVE NORTH, AND HAVING A RADIUS OF 2055.00 FEET;
THENCE WESTERLY ALONG SAID CURVE AN ARC DISTANCE OF 13.58 FEET THROUGH AN INTERIOR ANGLE OF 0°22′43″ TO THE POINT OF BEGINNING; THENCE SOUTH 4°50′00″ EAST, A DISTANCE OF 5.00 FEET;
THENCE SOUTH 85°10′00″ WEST, A DISTANCE OF 3.00 FEET;
THENCE NORTH 4°50′00″ WEST, A DISTANCE OF 5.00 FEET TO A POINT ON A NON-
TANGENT CURVE ON SAID SOUTH RIGHT OF WAY LINE, AND SAID NORTH LINE OF LOT A, A RADIAL BEARING TO SAID POINT BEING SOUTH 4°47′30″ EAST, SAID CURVE BEING CONCAVE NORTH, AND HAVING A RADIUS OF 2055.00 FEET; THENCE EASTERLY ALONG SAID CURVE AN ARC DISTANCE OF 3.00 FEET THROUGH AN INTERIOR ANGLE OF 0°05′01″ TO THE POINT OF BEGINNING.
PARCEL “B” CONTAINS 15 SQUARE FEET, MORE OR LESS.
ALL OF THE ABOVE DESCRIBED PROPERTY CONTAINS 30 SQUARE FEET, MORE OR LESS.
ALL AS SHOWN ON EXHIBIT “B” ATTACHED HERETO AND MADE A PART HEREOF.
END OF LEGAL DESCRIPTION.
SUBJECT TO ANY AND ALL EXISTING
MATTERS OF RECORD.
PREPARED BY ME OR UNDER MY DIRECTION.
_____________________________________________
RICHARD C SHEPARD, PLS 6218 DATE
RichardC.
Shepard30SEP24
600
Rich
601
602
Resolution No. 2025-xx
RESOLUTION NO. 2025-xx
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF VISALIA AUTHORIZING SOUTHERN CALIFORNIA EDISON ANCHOR EASEMENT SERIAL NO. 73622A
WHEREAS, the City of Visalia is moving forward with a construction project to widen Riggin Avenue between Kelsey Street to Shirk Street, this project is referred to as the Riggin Avenue Widening Project; and
WHEREAS, there are five (5) transmission poles owned and operated by Southern California Edison in this area that must be relocated in order to comp lete the Riggin Avenue Widening Project;
WHEREAS, property rights for these five (5) utility poles has been reviewed and determined to be held under property rights owned by Southern California Edison; and
WHEREAS, The City is responsible for the costs of relocating the five (5) poles held under property rights owned by Southern California Edison; and
WHEREAS, The City of Visalia has executed a Utility Agreement with Southern California Edison and under the terms of the Utility Agreement the City will agree to be financially liable for the five (5) transmission poles that need to be relocated as part of the Riggin Avenue Widening Project; and
WHEREAS, Southern California Edison has requested that the City grant an anchor easement in order for Southern California Edison to install necessary support infrastructure to relocate the five (5) transmission poles; and
NOW, THEREFORE, BE IT RESOLVED, that that the City Council of the City of Visalia:
1. The Visalia City Manager is authorized on behalf of the City of Visalia to sign the Southern California Edison anchor easement serial no. 73622A, with any such additional non-substantive changes as the City Manager deems appropriate. 603
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Rd 92
Ave 320
W Doe Ave
N Shirk St
W Goshen Ave
N Plaza Dr
N Kelsey St
W Riggin Ave Ave 312
W Kibler Ave
W Sunnyview Ave
W Ferguson AveN Plaza Dr
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Location Map
Riggin Ave Widening - Kelsey to Shirk
Riggin Avenue
(Kelsey to Shirk)
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Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 24-0597 Agenda Date: 2/3/2025 Agenda #: 9.
Agenda Item Wording:
Confirmation of reappointed and newly appointed Measure N Oversight Board members for review of all proposed Council spending plans for Measure N funds.
Deadline for Action: 2/3/2025
Submitting Department: Administration
Contact Name and Phone Number: Jennifer Gomez, Chief Deputy City Clerk, 713-4512 Department Recommendation:
It is recommended that the Visalia City Council confirm the appointments of the following citizens to the Measure N Oversight Board for a two-year term through January 2027:
Mayor Poochigian Matt Seals
Vice Mayor Taylor Jason Osborn
Councilmember Hernandez Soto Lisa Alvarado
Councilmember Nelsen Darlene Mata
Councilmember Wynn Mark Fulmer
Citizens’ Advisory Committee (1) Glenn Stewart
Citizens’ Advisory Committee (2) Ed Jones
Visalia Economic Development
Corporation
Carrie Groover
Visalia /Hispanic Chamber of Commerce Armando Apodaca
Downtown Visalians/Property Owners Myron Sheklian
Home Builders Association or the Board of
Realtors.
Esther Perez
Background Discussion: Measure N was passed by the Visalia voters in November 2016. The Measure emphasized the importance of maintaining Police, Fire, Roads, and Park and Recreation services at levels commensurate with overall city growth.
In order for the maintenance of the plan and to transparently disclose any items that may be changed in the future the Council also adopted certain procedural rules to maintain a high degree of accountability on the uses of these monies. One of the rules is the formation of and an ongoing Measure N Oversight Board.
The Measure N Oversight Board reviews the proposed Council spending plan and communicates Visalia City Council Printed on 1/31/2025Page 1 of 2
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their input to Council. The Council appointed an eleven-member standing oversight committee to constitute the Sales Tax Oversight Board (the "Board"). Each member of the Board shall be a Visalia resident. The members of the Board shall serve two-year terms and may be reappointed for up to two additional two-year terms for a total of three consecutive terms. The members of the Sales Tax Oversight Board shall be selected as outlined in the Accountability Ordinance.
Each City Council member shall select one (1) member for the Board, The Citizens' Advisory Committee shall select two (2) of its members to serve, One (1) member selected by the Visalia Economic Development Corporation, One (1) member selected by the Visalia Economic Development Corporation, One (1) member selected by the Hispanic Chamber of Commerce of Tulare/Kings County or the Visalia Chamber of Commerce.
Fiscal Impact: N/.A
Alternatives: The appointment process is laid out through the Measure N process. The appointees must be residents of the City of Visalia, but otherwise the appointees are up to the discretion of the Council Members or organizations making the appointments.
Recommended Motion (and Alternative Motions if expected):
I move to confirm the appointments of the Measure N Oversight Board as presented.
Attachments: Accountability Ordinance 2016-21
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Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 24-0600 Agenda Date: 2/3/2025 Agenda #: 10.
Agenda Item Wording:
Contract for the Purchase of Street Name Signs - Authorize the City Manager to award an annual contract for the supply and delivery of street name signs to Safeway Sign Company at an amount not to exceed $65,000 annually, totaling $325,000 over the life of the contract, from the Gas Tax Fund (111), with an option to renew annually for up to four (4) additional one-year terms.
Deadline for Action: 2/3/2025
Submitting Department: Public Works
Contact Name and Phone Number
Danny Galindo, Public Works Manager, [email protected] <mailto:[email protected]> , 713-4186
Nick Bartsch, Public Works Director, [email protected] <mailto:[email protected]> , 713-4052
Department Recommendation:
Staff recommends that the City Council authorize the City Manager to award an annual contract to Safeway Sign Company for supply and delivery of traffic street name signs (SNS) in accordance with the specifications of Request for Bid (RFB) 23-24-22 in the amount of $65,000 annually, totaling $325,000 over the life of the contract. The bid amount came in at $51,407.30, and to account for the potential annual CPI increases allowable to the vendor per the contract specifications, staff is requesting the annual NTE amount be $65,000. This is a one-year contract, with an option to renew annually for up to four (4) additional one-year terms.
Background Discussion:
Due to the expiration of the prior contract for the supply and delivery of street name signs (SNS), Staff solicited bid proposals through Request for Bid (RFB) 23-24-22. Purchasing advertised the RFB on November 1st & 6th, 2024 in the Visalia Times Delta newspaper, on Bidnet, and sent letters to past companies the City has completed this type of work with. Bids were publicly opened on December 3, 2024, and received the following six-bids:
1. Fyre Marketing - 32,474.74
2. Safeway Sign Company - $51,407.30
3. Safety Network Traffic Signs - $51,537.50
4. Front Signs - $82,562.71
5. Blink Signs - $84,187.20
6. Azco Supply - $152,132.19
Staff evaluated the lowest bid from Fyre Marketing. The provided references were checked and their prior experience did not meet the criteria that was required. Staff requested additional references Visalia City Council Printed on 1/31/2025Page 1 of 2
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and ultimately determined they did not meet the RFB requirements.
Safeway Sign Company was the second lowest bidder. Their references were contacted and established that Safeway Sign Company met all the requirements of the RFB.
While these signs were once produced in-house, staff found that due to the growing magnitude of the number of signs needed, it was more efficient to have them made by an outside manufacturer. The need for the replacement of SNS has increased over time with the City’s growth, and with this economy of scale, it is better served through an annual contract to produce and supply these signs.
City staff evaluates SNS throughout the year and maintains a list of signs that require replacement due to fading and loss of reflectivity. Staff typically replaces a total of 950 signs per year under this contract as they work throughout the various sections of the City. The new contract will be for a one- year period with the option of four renewable one-year extensions. Staff will continue to be responsible for the installation of SNS through the management of this program.
Fiscal Impact:
Funding for the supply and delivery of street signs is budgeted under CP0406 within the Gas Tax Fund (111) in the amount of $80,000, annually.
Prior Council Action: On April 1, 2019, City Council authorized the City Manager to award a 5-year contract to Safety Network Traffic Signs Inc. for the supply and delivery of street signs.
Other: N/A
Alternatives: Not award this contract and produce these signs in-house. This is not recommended due to the impact on staff’s current workload and a likely increase in costs to do so.
Recommended Motion (and Alternative Motions if expected):
I motion to authorize the City Manager to award an annual contract to Safeway Sign Company in the amount of not to exceed $65,000 annually, totaling $325,000 over the life of the contract for the supply and delivery of street name signs in accordance with the specifications of Request for Bid (RFB) 23-24-22, with an option to renew annually for up to four (4) additional one-year terms.
Environmental Assessment Status: N/A
CEQA Review: N/A
Attachments: Click or tap here to enter text.
Bid Summary
Ownership Discloser
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Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 24-0602 Agenda Date: 2/3/2025 Agenda #: 11.
Agenda Item Wording:
Landscape and Lighting District Enhancement Project - Request authorization to file a Notice of Completion for the Lisendra Heights Landscape Enhancement Project, 5300 W. Whitendale Ave, Visalia, CA. (Project No. 2730-72000/CP0750-999).
Deadline for Action: 2/3/2025
Submitting Department: Community Services
Contact Name and Phone Number: Zach Huff, Urban Forestry Supervisor 713-4295; [email protected] <mailto:[email protected]> Alvin Dias, Parks and Facilities Manager 713- 4564; [email protected] <mailto:[email protected]> Jason Glick, Parks and Recreation Director 713-4042; [email protected] <mailto:[email protected]> Department Recommendation:
Staff recommends that the City Council authorize the filing of a Notice of Completion for the Lisendra Heights Phase 1 Landscape Enhancement Project (Project No. 2730-72000/CP0750-999).
Background Discussion:
Summary:
The Lisendra Heights District is approximately 30 years old and was built over seven phases of construction. Much of the landscape and irrigation has reached its expected life cycle. The landscape, predominately the trees and larger shrubs were especially affected by the several years of drought conditions and state-imposed water restrictions. Many of the trees have been removed over the years and staff have been slowly replacing them with more drought tolerant varieties over the last few months. This plan restored irrigation function and installed drought tolerant shrubs and trees, while keeping the landscape attractive for residents.
Background:
On February 12, 2024, staff solicited bids from three landscape contractors, Quality Landscape Construction Inc., of Visalia, CA, Brightview Landscape Services, of Fresno, CA, and Clean Cut Landscape Management, of Clovis, CA.
On Wednesday, February 21, 2024, a mandatory onsite pre-bid meeting was held at the Lisendra Heights Landscape District. Contractors that did not attend the meeting were ineligible to submit bids for this project.
During the pre-bid meeting, staff reviewed the bid specifications, reviewed the mandatory requirements imposed by the State of California Department of Industrial Relations and answered questions.
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Staff received several questions from contractors where staff carefully reviewed and answered them in separate addendums.
On Thursday, March 14, 2024, the City received bids from two (2) contractors Quality Landscape Construction Inc. and Brightview Landscape Services. After careful review of the bid results, and the Lisendra Heights fund balance, it was determined the enhancement project was over the district’s available funding and the scope of work would need to be reduced to complete the project.
On Tuesday, March 26, 2024, a second addendum was sent out to the two (2) submitting contractors with a reduced scope of work, eliminating the turf removal and relandscaping of the parkway. Staff were hopeful that reducing the scope of the project a phase of the landscape enhancement project could be completed. On Thursday, April 11, 2024, staff received revised bids from the two (2) contractors. After reviewing the submitted bids, Brightview Landscape Services, of Fresno, CA was the qualified low bidder.
Fiscal Impact:
The fiscal impact for the Lisendra Heights Landscape Enhancement Project will be funded by the 93- 02 Lisendra Heights Landscape and Lighting Districts cash balance Fund 273, of which there are sufficient funds for the project.
Lisendra Heights Phase 1 Landscape Enhancement Project
CIP 2730-72000/CP0750-999
Fund 273 - Landscape and Lighting Districts $125,308.57 Actual Construction Costs
Brightview Landscape Services $125,308.57
Total Project Costs $125,308.57
Prior Council Action: May 20, 2024 - Council authorized the City Manager to award and enter into a construction contract with Brightview Landscape Services for the removal of existing plant material and installation of new irrigation and drought tolerant plant material.
Alternatives: N/A
Recommended Motion (and Alternative Motions if expected):
Move to Authorize the filing of a Notice of Completion for the Lisendra Heights Phase 1 Landscape Enhancement Project.
Environmental Assessment Status: N/A
CEQA Review: N/A
Attachments: Location Map, Draft Notice of Completion, Site Photos Visalia City Council Printed on 1/31/2025Page 2 of 2
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Recording requested by and
Please mail instrument to:
City of Visalia
315 E. Acequia Ave.
Visalia, CA 93291
Attn: City Engineer
This instrument benefits City only. No fee required
per Government Code Section 6103
Project
Notice of Completion
NOTICE IS HEREBY GIVEN by the City of Visalia, a Municipal Corporation of the State of California, located at 315 E. Acequia Avenue, Visalia, California, 93291, Owner in fee of the property, that the work of improvement on the property described as:
LISENDRA HEIGHTS PHASE 1 LANDSCAPE ENHANCEMENT PROJECT (2730-72000/CP0750-999) under the contract agreement entered into with Brightview Landscape Services dated 5/20/2024, as a whole was completed on 10/21/2024 and the City of Visalia hereby accepts said work.
Christopher Crawford, City Engineer and agent of the City of Visalia, deposes and says that he has read said Notice of Completion and knows the contents thereof, and that the same is true of his own knowledge; that he makes this affidavit for and on behalf of the City of Visalia.
__________________________________
Date
CITY OF VISALIA
BY __________________________________________
Christopher Crawford
City Engineer
State of California
County of Tulare
Subscribed and sworn to (or affirmed) before me on this __________________ day of _________________, 20_______, by ______________, proved to me on the basis of satisfactory evidence to be the person who appeared before me.
___________________________________
Date
__________________________________________
Notary Signature
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. 633
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Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 24-0604 Agenda Date: 2/3/2025 Agenda #: 1.
Agenda Item Wording:
Ordinance Adoption - A Public Hearing and Introduction of the first reading of Ordinance No. 2024- 12 for Zoning Text Amendment No. 2024-04: A request by the City of Visalia to amend Visalia Municipal Code Title 17 (Zoning Ordinance), Chapter 17.32.166 Short-Term Rentals, Citywide.
Deadline for Action: 2/3/2025
Submitting Department: Community Development
Contact Name and Phone Number:
Josh Dan, Senior Planner, [email protected] <mailto:[email protected]>, (559) 713-4003 Paul Bernal, Community Development Director, [email protected] <mailto:[email protected]>, (559) 713-4025
Department Recommendation:
Staff recommends that the City Council hold a public hearing and introduce the first reading of Ordinance No. 2024-12, amending Title 17 (Zoning Ordinance), Chapter 17.32.166 Short-Term Rentals to include fines for non-compliance, Citywide.
Summary:
On January 21, 2025, Ordinance No. 2024-12 was introduced for the first reading, but the item was continued to the February 3, 2025, City Council meeting at the request of the City Council.
Background Discussion:
The City Council, in response to several inquiries regarding Short-term rentals, directed staff to explore potential options regarding the ability to regulate this use in residential zones. On October 16, 2023, the City Council introduced the first reading of a Zoning Text Amendment (i.e., ZTA No. 2023- 01) that established codified performance standards regulating short-term rentals occurring in all residential zones (i.e., R-1 and R-M zones). In addition, the City Council directed staff to return in 60 to 90 days after the STR ordinance took effect for further discussion on potential revisions to the ordinance.
On February 20, 2024, staff presented an update on the STR ordinance and included additional information that could be further considered to help in getting STR owners/operators legally permitted. During the discussion of this work session item, a majority of City Council concluded that due to the limited data provided on STR application submittals, staff should return in six months to update the Council on the Ordinance’simplementation and to determine if additional measures would be merited to get STR owners/operators legally permitted.
On September 3, 2024, staff returned to the City Council with an update on the STR Ordinance “roll out”thus far. Based on information received during the September 3rd meeting, Council directed staff to amend the STR Ordinance (Chapter 17.32.166) to address compliance fee assessment and incorporate annual permitting requirements, thus, Zoning Text Amendment (ZTA) No. 2024-04 was Visalia City Council Printed on 1/30/2025Page 1 of 4
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incorporate annual permitting requirements, thus, Zoning Text Amendment (ZTA) No. 2024-04 was the city-initiated request to address revisions as directed by the City Council.
Updated Revisions to VMC Section 17.32.166 Short-Term Rentals:
Compliance Fee Assessment
Section 17.32.166.E has been added to the STR Ordinance. This new section, in coordination with the Finance Department, identifies the need to include enforcement language that explicitly identifies the penalty fee to be assessed for owners/operators who fail to comply with the STR ordinance and/or fail to apply for all the necessary applications / permits.
Similar to the Solid Waste provisions of the municipal code, revisions to Section 17.32.166 Short- term rental permits will now explicitly list the penalty fines if a property owner/operator fails to comply with the STR ordinance. The penalty amounts noted in the STR Ordinance for noncompliance, after first notice, are $100, $200, and $500.
Section 17.32.166 will be revised as follows:
E. Enforcement:
The City, in its sole discretion, may take enforcement action pursuant to the administrative code procedure described in Chapters 1.12
<https://codelibrary.amlegal.com/codes/visalia/latest/visalia_ca/0-0-0-22524> and 1.13 <https://codelibrary.amlegal.com/codes/visalia/latest/visalia_ca/0-0-0-22540> of the Visalia Municipal Code.
Any person convicted of any infraction of this chapter shall be punished by:
1. A fine not exceeding one hundred dollars ($100.00) for a first violation;
2. A fine not exceeding two hundred dollars ($200.00) for the second violation of this chapter within one year; and
3. A fine not exceeding five hundred dollars ($500.00) for each additional violation of this chapter within one year. Each day a violation continues shall be regarded as a new and separate offense.
Annual Renewal Requirement (Removed)
The annual STR application renewal requirement language, as initially proposed per Ordinance No. 2024-12, has been removed. Staff concludes this requirement, if enacted, results in a redundancy on determining if an STR is operational due to the fact that all STRs are already subject to bi-annual Business Tax fee assessment and reporting requirements that demonstrate if a business is still active in the City of Visalia. The removal of this proposed section also results in eliminating an additional fee that the Planning Division would have assessed on all renewal STR applications thereby reducing additional requirements that can be viewed as a burden on STR owners/operators that are otherwise not applied to other commercial business establishments, including traditional residential rentals.
Fiscal Impact: None.
Prior Council Action:
· September 3, 2024: Staff presented an update on the outreach and permit implementation thus far, and presented additional measures by which staff could get STR operators into compliance as Council had directed six-months prior. At the conclusion of the meeting, Council had approved the recommendation of staff to amend the STR Ordinance (Chapter 17.32.166) to address compliance fee assessment and incorporate annual permitting requirements, as Visalia City Council Printed on 1/30/2025Page 2 of 4
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to address compliance fee assessment and incorporate annual permitting requirements, as well as approve staff to solicit software services that may help in capturing STRs that have not applied for the appropriate City permits and licenses.
· February 20, 2024: Staff presented an update on the STR ordinance and included additional information that could be further considered to help in getting STR owners/operators legally permitted. During the discussion of this work session item, a majority of City Council concluded that due to the limited data provided on STR application submittals, staff should return in six months to update the Council on the Ordinance’s implementation and to determine if additional measures would be merited to get STR owners/operators legally permitted.
· November 6, 2023: The City Council, on a 4-1 vote, approved the second reading of Ordinance No. 2023-11 was held and served as the final action the City Council took in order for Zoning Text Amendment No. 2023-01 to take effect 30 days following adoption of the second reading.
· October 16, 2023: The City Council, on a 3-2 vote, approved the first reading of Zoning Text Amendment No. 2023-01 (Ordinance No. 2023-11), proposing to provide the framework for staff to implement a registration and permitting process for all short-term rentals occurring in all residential zones (i.e., R-1 and R-M zones) within the city. · May 1, 2023, City Council Work Session: The City Council, on a 5-0 vote, directed staff to analyze potential operational standards for short-term rentals, and begin a Zoning Text Amendment.
Planning Commission Public Hearings:
· November 12, 2024: The Planning Commission voted 5-0 to recommend approval of Zoning Text Amendment No. 2024-04, to the City Council.
· September 25, 2023: The Planning Commission voted 5-0 to recommend approval of Zoning Text Amendment No. 2023-01, to the City Council.
· August 28, 2023: The Planning Commission received a presentation and informative report regarding short-term rentals which included a synopsis of staff’sprevious presentation to the City Council and explanation of directives received. The Planning Commission expressed agreement with Council’s directives.
Alternatives:
The City Council may, in lieu of the recommended motion, consider any of the following alternatives:
1. Refer all parts of the ordinance back to the Planning Commission for further review; or
2. Direct staff to not process any amendments to Visalia Municipal Code Section 17.32; or
3. Continue the matter of a future City Council hearing for additional information.
Recommended Motion (and Alternative Motions if expected):
I move to introduce the first reading of Ordinance No. 2024-12 for Zone Text Amendment No. 2024-
04. Environmental Assessment Status:
The project is Categorically Exempt from the California Environmental Quality Act (CEQA) pursuant Visalia City Council Printed on 1/30/2025Page 3 of 4
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File #: 24-0604 Agenda Date: 2/3/2025 Agenda #: 1.
The project is Categorically Exempt from the California Environmental Quality Act (CEQA) pursuant to the Code of Regulations Section 15061(b)(3).
CEQA Review:
The requested action is considered exempt under Section 15061(b)(3), Per Section 15061(b)(3) of the State Guidelines for the California Environmental Quality Act (CEQA). A Notice of Exemption has been prepared for the project because Section 15061 (b) (3) states that the project is exempted from CEQA if the activity is covered by the commonsense exemption that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. The proposed text amendment to establish performance standards for smoke shops will not have a significant effect on the environment.
Attachments:
Attachment 1 - Ordinance No. 2024-12
Attachment 2 - PowerPoint Presentation
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ORDINANCE NO. 2024-12
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF VISALIA APPROVING ZONING TEXT AMENDMENT NO. 2024-04,
A REQUEST BY THE CITY OF VISALIA TO AMEND CHAPTER TITLE 17 (ZONING) CHAPTER 17.32 SPECIAL PROVISIONS TO REGUALTE SHORT-TERM RENTALS
IN SINGLE-FAMILY RESIDENTIAL ZONES, CITYWIDE
WHEREAS, Zoning Text Amendment No. 202 4-04 is a request by the City of Visalia to amend Visalia Municipal Code Title 17 (Zoning Ordinance), Chapter 17.32.166 Short-Term Rentals to add language requiri ng applicants to reapply annually and to include fines for non -compliance, Citywide. The specific amendments apply City -wide and are specified in Attachment “A” of this Ordinance; and
WHEREAS, the Planning Commission of the City of Visalia, after duly published notice, held a public hearing before said Commission on November 12, 2024; and,
WHEREAS, the Planning Commission of the City of Visalia considered the Zone Text Amendment in accordance with Section 17.44.070 of the Zoning Ordinance of the City of Visalia and on the evidence contained in the staff report and testimony presented at the public hearing, and recommended approval of said Zone Text Amendment to the City Council; and,
WHEREAS, the City Council of the City of Visalia, after duly publishe d notice, held a public hearing before said City Council on November 18, 2024, and introduced said Ordinance for first reading on that date; and
WHEREAS, on December 16, 2024, staff presented the second reading of Ordinance No. 2024-12 to the City Council and requested that the ordinance be referred back to staff for further revisions; and
WHEREAS, the City Council of the City of Visalia, after duly published notice, held a public hearing before said City Council on January 21, 2025, and continued said item to their February 3, 2025, meeting; and
WHEREAS, the City Council of the City of Visalia, held a public hearing before said City Council on February 3, 2025 , and introduced said Ordinance for the first reading on that date; and
WHEREAS, the project is exempt under the California Environmental Quality Act (CEQA) Guidelines section 15061(b)(3) (common sense exemption).
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NOW, THEREFORE, BE IT RESOLVED that the City Council concurs that the project is exempt from further review under the California Environmental Quality Act (CEQA) Guidelines section 15061(b)(3) (common sense exemption).
BE IT FURTHER RESOLVED that the City Council of the City of Visalia finds as follows:
1. That the proposed Zone Text Amendment is consistent with the intent of the General Plan, and Zoning Ordinance, and is not detrimental to the public health, safety, or welfare, or materially injurious to properties or improvements in the vicinity. The proposed zoning amendment is crafted to address public concerns, process operator application requests, and regulate STRs via codified objective standards.
2. That the proposed Zone Text Amendment is not inconsistent with any other Element of the General Plan.
3. That the project is exemp t from further review under the California Environmental Quality Act (CEQA) Guidelines section 15061(b)(3) (common sense exemption).
NOW, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF VISALIA, that Zoning Text Amendment 202 4-04, is approved, as contained in Attachment “A” of this Ordinance.
Severability. If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this Ordinance, or its application to any person or circumstances, is for any reason held to b e invalid or unenforceable, such invalidity or unenforceability shall not affect the validity or enforceability of the remaining sections, subsections, subdivision, paragraphs, sentences, clauses or phrases of this Ordinance, or its application to any other person or circumstance. The City Council of the City of Visalia hereby declares that it would have adopted each section, subsection, subdivision, paragraph, sentence, clause or phrase hereof, irrespective of the fact that any one or more other sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases hereof be declared invalid or unenforceable.
Construction. The City Council intends this Ordinance to supplement, not to duplicate or contradict, applicable state and federal law and t his Ordinance shall be construed in light of that intent.
Effective Date. This Ordinance shall take effect thirty days after its adoption.
Certification. The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published or posted according to law.
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Ordinance No. 2024-12
ATTACHMENT A
Zoning Text Amendment No. 202 4-04, amending Visalia Municipal Code Title 17 (Zoning Ordinance), Chapter 17.32.166 Short -Term Rentals to add fines for non - compliance, Citywide , and to read as follows , as specified by italics & underline for additions:
1. TITLE 17 Zoning
Chapter 17.32 Special Provisions
Section 17.32.166 Short-term rental permits.
A. Short-term rental permits may be processed as an administrative matter by the city planner and no hearing shall be required.
B. In addition to all other requirements of this chapter, and notwithstanding any contrary provisions in this Code, short-term rentals are subject to the following operational standards in all R-1 and R-M zones citywide:
1. Definitions. The definitions in this subsection shall govern the construction, meaning, and application of the following words and phrases used in this chapter:
a. “Local contact person” shall mean a person designated by an owner or the owner’s agent, who, if designated to act as such, shall be available to respond to notification of a complaint regarding the dwelling within forty-five (45) minutes, and take remedial action necessary, as required under subsection “4” of this section. A local contact person may be the owner or the owner’s agent.
b. “Occupant” shall mean any person who is on or in a short-term rental property other than service providers or the owner, whether or not the person stays overnight. c. “Operator” shall mean the owner or the designated agent of the owner who is responsible for compliance with this section.
d. “Owner” shall mean the person(s) or entity(ies) that holds legal or equitable title to a dwelling.
e. “Short-term rental” shall mean the rental of a dwelling or a portion thereof by the owner to another person or group of persons for occupancy, dwelling, lodging or sleeping purposes for a period of less than thirty (30) consecutive calendar days. The rental of units within City-approved hotels, motels, bed and breakfasts, and time- share projects shall not be considered to be a short-term rental.
2. The owner of a short-term rental shall not be relieved of any personal responsibility or personal liability for noncompliance with any applicable law, regardless of whether such noncompliance was committed by the owner’s agent, a local contact person or the occupants of the owner’s short-term rental unit.
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3. The owner shall ensure that the short-term rental comply with all applicable codes regarding fire, building and safety, and all other relevant laws, regulations and ordinances, obtain all permits required, and pay all applicable fees.
4. While a short-term rental is rented, the owner or a local contact person shall be available by telephone twenty-four (24) hours per day, seven (7) days per week to respond to complaints regarding the use, condition, operation or conduct of occupants of a short-term rental. The owner or a local contact person must be on the premises of the short-term rental at the request of an enforcement officer of the City’s Police Department within forty-five (45) minutes of contact to satisfactorily correct or take remedial action necessary to resolve any complaint, alleged nuisance or violation of this chapter by occupants occurring at the short-term rental property. Failure of the owner or a local contact person to respond to calls or complaints in a timely and appropriate manner shall be grounds for imposition of penalties as set forth in this chapter and/or Chapter 1.13 of Title 1.
5. Short-term rentals shall be used only for overnight lodging accommodations. At no time shall a short-term rental be used for activities in excess of the occupancy limits established in subsection 7 of this section, or for weddings, receptions, parties, commercial functions, advertised conferences, or other similar assemblies that are separate from the purpose of lodging.
6. All advertising appearing in any written publication or on any website that promotes the availability or existence of a short-term rental shall include the City-issued permit number as part of the rental offering. No person shall advertise the use of a dwelling as a short- term rental unless the City has approved a permit for short-term rental pursuant to this chapter.
7. The owner shall limit occupancy of a short-term rental property to a specific number of occupants. The following table sets forth the maximum number of occupants to two (2) per bedroom plus one (1):
Number of
Bedrooms
Total
Occupants
Studio – 1 3
2 5
3 7
4 9
5 11
6 13
8. Only the habitable interior portions of a primary dwelling shall be utilized as a short-term rental. Garages, tents, camper trailers, recreational vehicles, accessory dwelling units (ADUs), or other exterior structures or spaces are not permissible as short-term rentals or as bedrooms within short term rental units.
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9. In any advertising concerning the availability of a dwelling as a short-term rental, the owner or a local contact person shall advertise the maximum number of occupants allowed to occupy the short-term rental.
10. No on-site exterior signs shall be posted advertising the availability of a short-term rental at the short-term rental property.
11. All vehicles of occupants of a short-term rental unit shall be parked only in an improved driveway or garage on the short-term rental property. The maximum number of vehicles allowed on a short-term rental property shall be limited to the number of available off- street parking spaces; however, such property must have a minimum of two (2) off-street parking spaces. The owner shall provide access to the garage of the dwelling if that area has been included in the determination of the number of available off-street parking spaces pursuant to this chapter. In no event shall off-street parking include the use of landscaped areas, any private or public sidewalk, parkway, walkway or alley (or any portion thereof) located on, at or adjacent to the short-term rental property, or the blocking of the driveway or street in front of said property. The term “sidewalk” shall include that portion of a driveway that is delineated for pedestrian travel or is in the public right-of-way.
12. If an enforcement officer has received a complaint concerning a suspected violation of this chapter or of this code or any applicable law, rule, or regulation pertaining to the use or occupancy of a short-term rental unit, or if the enforcement officer has reason to believe that such a violation has occurred, the enforcement officer may notify the owner or the local contact person of the complaint or suspected violation and the notified person shall cooperate in facilitating the investigation and the correction of the suspected violation.
Failure of the owner or the local contact person to affirmatively respond to the officer’s request within forty-five (45) minutes by reasonably cooperating in facilitating the investigation and the correction of the suspected violation shall be deemed to be a violation of this chapter. Notwithstanding the foregoing, it is not intended that an owner or the local contact person act as a peace officer or place himself or herself in an at-risk situation.
13. Notwithstanding Visalia Municipal Code Section 9.32.040, no musical instrument, phonograph, loudspeaker, amplified or reproduced sound, or any machine or device for the production or reproduction of any sound shall be used outside or be audible from the outside of a short-term rental unit between the hours of 7:00 p.m. and 6:00 a.m.
14. Occupants shall not engage in outdoor activities on a short-term rental property between the hours of 10:00 p.m. and 6:00 a.m., such as the use of swimming pools, hot tubs, spas, tennis and paddleboard courts, play equipment and other similar and related improvements. The hours between 10:00 p.m. and 6:00 a.m. are considered to be “quiet time,” where all activities at a short-term rental property shall be conducted inside of a short-term rental unit so that no outdoor activity will disturb the peace and quiet of the neighborhood adjacent to a short-term rental property or cause discomfort or annoyance to any reasonable person of normal sensitivity residing in the area.
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15. It is unlawful for any owner, occupant, renter, lessee, person present upon, or person having charge or possession of a short-term rental to make or continue or cause to be made or continued any loud, unnecessary or unusual noise which disturbs the peace and quiet of any neighborhood or which causes discomfort or annoyance to any reasonable person of normal sensitivity residing in the area, or violates any provision of Title 8 Health and Safety.
16. The owner and the local contact person shall ensure that the occupants of a short-term rental unit do not create unreasonable noise or disturbances, engage in disorderly conduct, or violate provisions of this Code or any State law pertaining to noise, disorderly conduct, overcrowding, the consumption of alcohol, or the use of illegal drugs. Owners and local contact persons are expected to take any measures necessary to abate disturbances, including, but not limited to, directing the occupants of a short-term rental unit to cease the disturbing conduct, calling for law enforcement services or enforcement officers, removing the occupant(s), or taking any other action necessary to immediately abate the disturbance.
17. Trash and refuse shall not be left stored within public view, except in proper containers for the purpose of collection by the responsible trash hauler, as set forth in Chapter 8.28, which provides for containers to be placed at the curb on the day of pickup and removed by 7:00 p.m. on the day of collection. The owner of a short-term rental property shall provide sufficient trash collection containers and service to meet the demand of the occupants. The short-term rental property shall be free of debris both on site and in the adjacent portion of the street.
18. The owner shall post a sign at a conspicuous location within the short-term rental advising occupants of all rules and operational standards imposed upon occupants under this section.
19. All short-term rentals shall be subject to the City’s transient occupancy tax, as required by Title 3 Revenue and Finance, Chapter 3.28 Transient Occupancy Tax. The owner shall also maintain, at all times, a valid City of Visalia business license.
20. Short-term rentals shall not exceed one unit per parcel in any residentially zoned district .
C. A short-term rental permit shall be revoked by the city planner upon violation of any condition or regulation, or any limitation of any permit issued, unless such violation is corrected within ten (10) days of notice of such violation. Any permit may be revoked if three or more violations occur within a one -year period or the required transient occupancy tax payments are not made to the City as required under Chapter 3.28.
D. In the event of denial or revocation, or objections to limitations placed thereon, an appeal may be made in writing to the planning commission. Such appeal shall be filed in writing with the city planner, in writing, within ten (10) business days after notification of the denial or revocation, with payment of appeal fees in the same amount as required for the appeal of a site plan review permit as provided in Chapter 17.28. The planning commission shall review and either uphold or deny the city planner decision.
The decision of the planning commission shall be final unless appealed to the city council pursuant to Section 17.02.145.
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E. Enforcement:
The City, in its sole discretion, may take enforcement action pursuant to the administrative code procedure described in Chapters 1.12 and 1.13 of the Visalia Municipal Code.
Any person convicted of any infraction of this chapter shall be punished by:
1. A fine not exceeding one hundred dollars ($100.00) for a first violation;
2. A fine not exceeding two hundred dollars ($200.00) for the second violation of this chapter within one year; and
3. A fine not exceeding five hundred dollars ($500.00) for each additional violation of this chapter within one year. Each day a violation continues shall be regarded as a new and separate offense.
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$ J U Z $ P V O D J M ) F B S J O H
City of Visalia
February 3, 2025
ZTA No. 2024-04
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Zoning Text Amendment No. 2024-04:
• This item was continued from the Jan. 21st Council meeting. • A request by the City of Visalia to amend Visalia Municipal Code Title 17 (Zoning Ordinance), Chapter 17.32.166 Short- Term Rentals to add language requiring applicants to
reapply annually and to include fines for non-compliance • Zoning: Residential Zones (all R-1 and R-M)
• Location: Citywide
PROJECT DESCRIPTION
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Proposed Revisions to
VMC 17.32.166 Short-Term Rentals
• Addition of Section 17.32.166.E (Enforcement)
• New section coordinated with the Finance Department to:
• Identify enforcement language that explicitly identifies the penalty fee assessed for failure to comply with the STR ordinance and/or fail to apply for all the necessary applications / permits.
• Penalty fees similar to the Solid Waste provisions of the municipal code. • The penalty amounts noted in the STR Ordinance for noncompliance, after first notice, are $100, $200, and $500.
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Proposed Revisions to
VMC 17.32.166 Short-Term Rentals
• Section 17.32.166 will be revised as follows:
E. Enforcement:
The City, in its sole discretion, may take enforcement action pursuant to the administrative code procedure described in Chapters 1.12 and 1.13 of the Visalia Municipal Code.
Any person convicted of any infraction of this chapter shall be punished by:
1. A fine not exceeding one hundred dollars ($100.00) for a first violation;
2. A fine not exceeding two hundred dollars ($200.00) for the second violation of this chapter within one year; and
3. A fine not exceeding five hundred dollars ($500.00) for each additional violation of this chapter within one year. Each day a violation continues shall be regarded as a new and separate offense.
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BASIS FOR FINDINGS
• The Zoning Text Amendment is consistent with the goals, objectives, and policies of the City’s General Plan.
• The Zoning Text Amendment amends established objective standards to adequately address operational standards for short-term rentals, consistent with the stated goals of the City of Visalia General Plan and Zoning Ordinance to preserve and promote the public health, safety, and welfare of the city. • Adopt the first reading of Ordinance No. 2024-12 for Zoning Text Amendment No. 2024-04, which amends VMC Section 17.32.166 Short- Term Rentals.
STAFF RECOMMENDS:
RECOMMENDATION
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5IBOL ZPV
2025
City of Visalia - Planning Division
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Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 24-0607 Agenda Date: 2/3/2025 Agenda #: 2.
Agenda Item Wording:
Appeal of Planning Commission Action - A continued Public Hearing to consider an appeal of the Planning Commission’sdenial of Conditional Use Permit No. 2024-29, which was a request to amend the hours of operation for the Jack in the Box drive-thru facility to 24-hours located at 1145 South Lovers Lane, in the Neighborhood Commercial zone.
Deadline for Action: 2/3/2025
Submitting Department: Community Development
Contact Name and Phone Number:
Josh Dan, Senior Planner, [email protected] <mailto:[email protected]>, (559) 713-4003 Paul Bernal, Planning and Community Preservation Director, [email protected] <mailto:[email protected]>, (559) 713-4025
Department Recommendation:
Staff recommends that the City Council receive a staff presentation, hold a public hearing, and adopt Resolution No. 2024-52 denying the appeal and upholding the Planning Commission’s denial of Conditional Use Permit No. 2024-29. It is standard practice for staff to recommend the upholding of a Planning Commission action.
However, the City Council may, in lieu of the recommended motion as specified above, consider any of the following alternative motions:
1. Overturn the decision of the Planning Commission and approve Conditional Use Permit No. 2024-29, subject to the applicant constructing a three-foot tall block wall to border the entirety of the drive-thru lane to provide immediate screening and to install landscaping vegetation to screen the wall as the vegetation matures, the construction of the three foot block wall and additional landscaping will require the submittal of building plans for review and approval along with issuance of a building permit (see Attachment 5); or
2. Direct the applicant to conduct further outreach to the neighborhood; or
3. Continue the matter to a future City Council hearing.
Summary:
The item was presented at the public hearing on January 21, 2025. Staff briefly provided an overview of the request, and the City Council heard from the applicant and members of the public in opposition to the item. Ultimately, the City Council voted 3-0 to continue the item to their February 3, 2025, meeting.
The applicant filed an appeal of the Planning Commission’sdecision to deny the request to amend the hours of operation for a Jack in the Box fast-food restaurant previously approved per Conditional Use Permit (CUP) No. 2021-22, located at 1145 South Lovers Lane. The CUP amendment request Visalia City Council Printed on 1/30/2025Page 1 of 5
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Use Permit (CUP) No. 2021-22, located at 1145 South Lovers Lane. The CUP amendment request was to modify the operating hours from 5:00 a.m. to 12:00 a.m. (midnight), as originally conditioned by the Planning Commission, to 24-hours a day.
At the September 16, 2024, City Council meeting, the City Council heard from the applicant and one person from the public who opposed the applicants request to amend their hour of operation. After further discussion by the City Council, the Council requested the applicant and neighbor work together to find a solution that both parties could come to an agreement on and return once that agreement had been achieved.
Since that time, the applicant reached out to the neighbor to find an amicable solution for both parties. The applicant details, as provided in Attachment 1, that although he was willing to have a discussion with the neighbor and individuals who signed the letter of opposition to the CUP amendment request, the neighbor has not been willing to find an amicable solution which lead the applicant to suggest the planting of more landscape shrubbery along the drive-thru lane to better screen the lane and vehicle headlights.
Background Discussion:
Conditional Use Permit (CUP) No. 2021-22 was a request to permit the development of approximately 1.12-acres of C-N zoned property with a 1,315 square foot Jack in the Box fast-foot restaurant. This fast-food restaurant is designed with only a walk-up window and drive-thru lane; there is no indoor dining provided. Fast food restaurant uses, with a drive-thru lane, are considered a “permitted use” in the C-N zone subject to the drive-thru performance standards established in Section 17.32.162 of the Visalia Municipal Code (VMC). A Conditional Use Permit was warranted based on the drive-thru not complying with subsection B(1) of the above reference section, in which the drive-thru lane is within 250 feet of a residence and/or residentially zoned property.
During the public hearing for CUP No. 2021-22, the applicant clarified to the Planning Commission that the fast-food restaurant was seeking to operate 24-hours a day which was not consistent with the hours noted on the application form which listed operating hours from 6:00 A.M. to 12:00 A.M. (midnight). Staff stated during the presentation of the item that fast-food facilities were not limited to specific operating hours in the Municipal Code but would have to comply with the Noise Ordinance (VMC Chapter 8.36). Additionally, none of the other four Jack in the Box restaurants in Visalia operated with limited hours. Additional testimony was received from a member of the public who spoke and shared their concerns for the 24/7 operating hours, based on the projects proximity to abutting residences and Pinkham Elementary School which is approximately 1,321-feet to the west.
The Planning Commission, after further deliberation on the 24-hour operation request, concluded that it would be appropriate for the applicant to reconsider requesting 24/7 operational hours once more commercial development came to the site which may provide additional buffers to the nearby residential homes. The Planning Commission, understanding the concern, opted to include a condition limiting the hours of operation from 5:00 A.M. to 12:00 P.M. (midnight). This condition was included as Condition No. 10 of Resolution No. 2021-42. A copy of Resolution No. 2021-42 is attached to this staff report as Attachment 3.
Construction of the Jack in the Box restaurant was completed on September 21, 2022. During this time, the applicant had inquired with staff on multiple occasions on the process to amend the hours of operation condition. Through these discussions, staff encouraged the applicant to operate for at least a year and then consider an amendment to the approved entitlement.
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File #: 24-0607 Agenda Date: 2/3/2025 Agenda #: 2.
Planning Commission Public Hearing:
On August 12, 2024, CUP No. 2024-29 was heard before the Planning Commission. This CUP amendment was seeking a request to expand the fast-food restaurants hours of operation to 24- hours a day. The applicant provided a narrative and letter to the Commission in Planning Commission in support of their request to modify the hours of operation for the Jack in the Box fast-food restaurant. Both exhibits by the applicant identified the project’scompliance with the municipal code, operational history at the site, and no public complaints received at the site. The applicant attributed their success of operating a business in compliance with all City codes due to the management structure in which the business is operated. Additionally, the applicant identified that “the need to operate 24/7 is directly tied to the increased minimum wage requirement by the State”.
During the public comment period, the Planning Commission received verbal and written comments detailing concern with the request for extended hours of operation as it would have an adverse impact on neighboring sensitive land uses. During the Planning Commission’sdeliberation, a majority of the Commissioners noted the request to operate 24-hours a day would pose incompatibility issues with the existing residential uses in close proximity. Commissioners also identified that other sites in the City operating 24-hours a day are not as closely located to sensitive land uses, having other commercial buffers between them and neighboring residences. Based on issues stated by the Planning Commission, the Commission denied the CUP amendment by a 5-0 vote. A copy of the Planning Commission staff report is attached to this report as Attachment 3.
Appeal of the Planning Commission Denial
On August 21, 2024, staff received an appeal of the Planning Commission’sdenial of Conditional Use Permit No. 2024-29. The appeal, filed by Patrice Roux, is included as Attachment 2. The reason for the appeal, as noted in the attached document is due the good operating order of the Jack in the Box sites within the City, the increase of fast-food minimum wage and cost to do business, and justification that all other Jack in the Box sites operate with 24-hour services.
Appeal Analysis:
The Planning Commission’sdiscussion, which ultimately lead to their recommendation to deny the project, focused on the project’sinconsistency with the surrounding residential uses. Several of the Planning Commissioners stated that the proposed amended hours of operation to a 24-hour drive thru-use is not compatible with adjacent residential land uses because the project's proximity to sensitive land uses, and requested intensification of operating hours, will have a direct impact to the neighboring residential uses by interfering with the enjoyment of properties in the existing neighborhoods that are adjacent or nearby the project site, and would therefore be materially injurious to properties or improvements in the vicinity. In addition, none of the conditions proposed would have the effect of eliminating the injurious effect of the project on the neighboring properties Pursuant to Section 17.38.110, Subsection A of the Zoning Ordinance of the City of Visalia, the Planning Commission must make certain findings in order to grant a conditional use permit application, and if such findings cannot be made, Subsection C of Section 17.38.110 provides that the Planning Commission may deny an application for a conditional use permit. Based upon careful consideration of the staff report and all pertinent testimony during the public hearing, the Planning Commission denied Conditional Use Permit No. 2024-29 because it was determined that the proposed use is not consistent with the policies and intent of the General Plan and Zoning Ordinance. The request to amend the existing Jack in the Box operating hours to 24-hour is not compatible with the existing residential character of existing neighborhoods to the west, southwest, and east of the site and none of the conditions proposed will have the effect of eliminating the Visalia City Council Printed on 1/30/2025Page 3 of 5
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and east of the site and none of the conditions proposed will have the effect of eliminating the inconsistency within the surrounding area. It is within the purview of the Planning Commission to deny a Conditional Use Permit if the Commission feels that the project does not meet the required findings.
Fiscal Impact:
N/A
Prior Council Action:
· On Jan. 21, 2025, the City Council voted 3-0 to continue the Public Hearting to February 3, 2025 since only three members of the Council could be present on Jan. 21, 2025. · On September 16, 2024, a public hearing was held to consider an appeal of the Planning Commission’sdenial of Conditional Use Permit No. 2024-29, which was a request to amend the hours of operation for the Jack in the Box fast food restaurant in the Neighborhood Commercial (C-N) zone. The project site is located at 1145 South Lovers Lane (APN: 100-120- 051). The item was continued to a date uncertain.
Committee/Commission Review and Action:
· On August 23, 2021, the Planning Commission approved Conditional Use Permit No. 2021-22, a request to build a 1,315 square foot Jack in the Box fast-food restaurant with a drive-thru lane on the northwest corner of East Tulare Avenue and South Lovers Lane by a 5-0 vote. · On August 12, 2024, the Planning Commission denied, by a 5-0 vote, Conditional Use Permit No. 2024-29, a request by Mike Davis to amend Condition of Approval No. 10 of Conditional Use Permit No. 2021-22, limiting the hours of operations from 5:00 A.M. to 12:00 A.M. for a Jack in the Box fast food restaurant in the Neighborhood Commercial (C-N) zone. The project site is located at 1145 South Lovers Lane (APN: 100-120-051).
Recommended Motion (and Alternative Motions if expected):
I move to deny the appeal and uphold the Planning Commission’sdenial of Conditional Use Permit No. 2024-29, or
Alternative Motions:
I move to overturn the decision of the Planning Commission and approve Conditional Use Permit No. 2024-29, subject to the applicant constructing a three-foot tall block wall to boarder the entirety of the drive-thru lane to provide immediate screening and to install landscaping vegetation to screen the wall upon as the vegetation matures, the construction of the three foot block wall and additional landscaping will require the submittal of building plans for review and approval along with issuance of a building permit, or
I move to direct the applicant to conduct further outreach to the neighborhood, or I move to continue the matter to a future City Council hearing.
Environmental Assessment Status: If the City Council denies the appeal and upholds the Planning Commission decision, no action needs to be taken on an environmental document subject to Section 15270 of the California Environmental Quality Act; or if the City Council overturns the Planning Commission’sdenial and approves Conditional Use Permit No. 2024-29, subject to conditions, a Categorical Exemption will be prepared consistent with the California Environmental Visalia City Council Printed on 1/30/2025Page 4 of 5
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File #: 24-0607 Agenda Date: 2/3/2025 Agenda #: 2.
conditions, a Categorical Exemption will be prepared consistent with the California Environmental Quality Act and City of Visalia Environmental Guidelines.
CEQA Review: No action needed if the project is denied subject to Section 15270 of the California Environmental Quality Act.
Attachments:
1. Resolution No. 2024-52 denying the appeal and upholding Planning Commission’s denial of Conditional Use Permit No. 2024-29
2. Attachment 1- Correspondence from the applicant detailing outreach and proposed solution
3. Attachment 2 - Appeal by Patrice Roux
4. Attachment 3 - Planning Commission Staff Report dated August 12, 2024
5. Attachment 4 - Planning Commission Resolution No. 2021-42
6. Attachment 5 - Image showing location of three-foot wall
7. General Plan Land Use Map
8. Zoning Map
9. Aerial Map
10. Location Map
Visalia City Council Printed on 1/30/2025Page 5 of 5
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RESOLUTION NO. 2024-52
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VISALIA DENYING THE APPEAL AND UPHOLDING THE PLANNING COMMISSION’S DENIAL OF CONDITIONAL USE PERMIT NO. 2024-29, A REQUEST BY MIKE DAVIS TO AMEND CONDITION NO. 10 OF CONDITIONAL USE PERMIT NO. 2021-22, LIMITING THE HOURS OF OPERATION FROM 5:00 A.M. TO 12:00 A.M. FOR A JACK IN THE BOX FAST FOOD RESTAURANT IN THE NEIGHBORHOOD COMMERCIAL (C-N) ZONE. THE PROJECT SITE IS LOCATED AT 1145 SOUTH LOVERS LANE (APN: 100-120-051).
WHEREAS, Conditional Use Permit No. 2024-29, is a request by Mike Davis to amend Condition of Approval No. 10 of Conditional Use Permit No. 2021 -22, limiting the hours of operations from 5:00 A.M. to 12:00 A.M. for a Jack in the Box fast food restaurant in the Neighborhood Commercial (C -N) zone. The project site is located at 1145 South Lovers Lane (APN: 100-120-051); and
WHEREAS, the Planning Commission of the City of Visalia, after a duly published public hearing notice, conducted said public hearing on August 12, 2024, and concluded said hearing on that date; and
WHEREAS, the Planning Commission of the City of Visalia does not find Conditional Use Permit No. 2024-29 to be in accordance with Chapter 17.38 of the Zoning Ordinance of the City of Visalia based on the evidence contained in the staff report and testimony presented at the public hearing; and
WHEREAS, the Planning Commission denied Conditional Use Permit No. 2024-29 based on the findings contained in this Resolution Nos. 2024-46, consistent with Visalia Municipal Code Section 17.38.110.C; and
WHEREAS, an appeal of the Planning Commission’s denial of Conditional Use Permit No. 2024-29, was received on August 21, 2024; and
WHEREAS, the City Council of the City of Visalia, after ten (10) days published notice held a public hearing before said Council on September 16, 2024, and continued the item to a date uncertain; and
WHEREAS, the City Council of the City of Visalia, after ten (10) days published notice held a public hearing before said Council on January 21, 2025, and continued the item to their February 3, 2025, meeting; and
WHEREAS, the City Council of the City of Visalia held a public hearing before said Council on February 3, 2025; and
WHEREAS, the City Council finds the denial of Conditional Use Permit No. 2024-29 was made in accordance with Chapter 17 .38 (Conditional Use Permits) of the City of Visalia, based on the evidence contained in the staff report and testimony presented at the public hearing; and
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WHEREAS, if the project is denied, no action needs to be taken on an environmental document.
NOW, THEREFORE, BE IT FURTHER RESOLVED that the City Council of the City of Visalia makes the following specific findings based on the evidence presented:
1. That the proposed use is not consistent with the policies and intent of the General Plan and Zoning Ordinance. The request to amend the existing Jack in the Box operating hours to 24 -hour is not compatible with the existing residential character of existing neighborhoods to west, southwest, and east of the site and none of the conditions proposed will have the effect of eliminating the inconsistency.
That the proposed use is not compatible with adjacent residential land uses because the project's neighborhood commercial zoning designation, its proximity to sensitive land uses, and requested intensification of operating hours, which will have a direct impact to the neighbor ing residential uses by interfere with the enjoyment of properties in the existing neighborhoods that are adjacent or nearby the project site, and would therefore be materially injurious to properties or improvements in the vicinity; none of the conditions proposed will have the effect of eliminating the injurious effect of the project on the neighboring properties.
BE IT FURTHER RESOLVED that the City Council denies the appeal , and upholds the denial of Conditional Use Permit No. 2024-29 on the real proper ty here in above described in accordance with the terms of this resolution, and under the provisions of California Government Code Section §66474, and Sections 16.16.115 and Section 17.38.110 of the Subdivision and Zoning Ordinances of the City of Visalia.
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From: Patrice Roux <[email protected]>
Sent: Tuesday, November 26, 2024 5:54 PM
To: Josh Dan
Subject: FW: Jack in The Box Lovers Lane
Aachments: Le,er Jack in The Box Lovers Lane 2024.pdf
Josh
Please see below the note:
Note:
A1er the council mee2ng with the City I exchange my phone number with Deborah and ask her to call me to come up with a solu2on to her concerns.
She never called me.
10 days a1er that mee2ng I stopped at her place with my wife to ask her if she contacted all the neighbors and ask her if we can have a mee2ng to discuss a solu2on. She was pre,y upset and aggressive in her talks. Not willing to discuss any solu2on.
I them reach to Steven from the City for help. Steven told me he will try to talk to her to see if we can have a resolu2on to that situa2on of Jack in the Box being 24 hours 7 days a week for our opera2on.
Soluon:
My solu2on regarding this situa2on is to con2nue to have the bushes along the DT Area grown to a 3 feet height. I reach to our landscaper to monitor the situa2on and add if necessary more bushes to achieve the desire height of 3 feet.
Our desire all along has been to be in compliance with the City direc2on and the well-being of the neighborhood
Thanks
Patrice Roux
VTP Enterprises dba Jack in the Box
1660 N Farmersville Blvd.
Farmersville, CA 93223
Phone: 559-625-4887
Fax: 559-627-5887
Cell: 626-848-2601
Privileged and Confidential: Unless otherwise indicated the information contained in this message is privileged and/or confidential information intended solely for the use of the addressee. If the reader of this message is not the intended recipient you are hereby notified that any dissemination, distribution or copying of this communication or any of the information in it is strictly prohibited. If you have 660
received this communication in error, please advise the sender by reply e-mail and then delete the message. Thank you.
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REPORT TO CITY OF VISALIA PLANNING COMMISSION
HEARING DATE: August 19, 2024
PROJECT PLANNER: Josh Dan, Senior Planner
Phone No.: (559) 713-4003
E-mail: [email protected]
SUBJECT: Conditional Use Permit 2024-29: A request by Mike Davis to amend Condition of Approval No. 10 of Conditional Use Permit No. 2021 -22, limiting the hours of operations from 5:00 A.M. to 12:00 A.M. for a Jack in the Box fast food restaurant in the Neighborhood Commercial (C-N) zone. The project site is located at 1145 South Lovers Lane (APN: 100-120-051).
STAFF RECOMMENDATION
Staff recommends approval of Conditional Use Permit No. 2024-29, amending Condition of Approval No. 10 for Conditional Use Permit No. 2021 -22, as conditioned in Resolution No. 2024-46, based on the project’s consistency with the General Plan and Zoning Ordinance.
RECOMMENDED MOTION
I move to approve Conditional Use Permit No. 20 24-29 based on the findings and c onditions in Resolution No. 2024-46.
PROJECT DESCRIPTION
On August 23, 2021, the applicant obtained approval of Conditional Use Permit No. 2021 -22 to allow the development of a new 1,315 square foot Jack in the Box restaurant with drive -thru on a 1.11-acre parcel in the C -N (Neighborhood Commercial) Zone. During the entitlement process, the applicant requested to allow the fast -food restaurant to operate 24-hours a day, consistent with other Jack in the Box restaurants located in the City. However, during the public hearing, one person from the public spoke in opposition to the applicants request to operate 24- hour a day. The Planning Commission, understanding the concern, opted to include a condition limiting the hours of operation from 5:00 A.M. to 12:00P.M. (midnight). This condition was included as Condition No. 10 of Resolution No. 2024 -46. A copy of Resolution No. 2021 -42 is attached to this staff report.
Construction of the Jack in the Box restaurant
at the northwest corner of South Lovers Lane
and East Tulare Avenue was completed on
September 21, 2022. The applicant had
inquired with staff on multiple occasions on
regarding the process to amend the operating
hours condition. Through these discussions ,
staff encouraged the applicant to operate for
at least a year and then consider an
amendment to the approved entitlement.
The Jack in the Box fast -food restaurant has
been in operation for over a year. To date, there has not been a single complaint or concern from the public regarding the restaurant.
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BACKGROUND INFORMATION
General Plan Land Use Designation: Commercial Neighborhood Zoning: C-N (Neighborhood Commercial)
Surrounding Zoning and Land Use: North: C-MU (Commercial Mixed Use) – Vacant South: Tulare Avenue, O-PA (Professional
Administrative Office) – existing Visalia
Wellness Center
East: Lovers Lane, O-PA (Professional Administrative
Office) – Vacant (entitled duplexes)
West: C-N (Neighborhood Commercial) – Single family
residence.
Environmental Review: Categorical Exemption No. 2024-40 Site Plan: 2020-198
RELATED PLANS AND POLICIES
All related plans and policies are reprinted in the attachment to this staff report entitled “Related Plans and Policies”.
RELATED PROJECTS
On August 23, 2021, the Planning Commission approved Conditional Use Permit No. 2021 -22, a request to build a 1,315 square foot Jack in the Box fast-food restaurant with a drive-thru lane on the northwest corner of East Tulare Avenue and South Lovers Lane by a 5-0 vote.
PROJECT EVALUATION
Staff recommends approval amending the condition on the operating hours based on project consistency with the General Plan and the Zoning Ordinance.
Land Use Compatibility
Fast food restaurant uses , with a drive -thru lane, are considered a “permitted use” in the C -N zone subject to the drive -thru performance standards established in Section 17.32.162 of the VMC. A C onditional Use Permit was warranted based on the drive-thru not comply ing with subsection B(1) of the above reference section, in which the drive-thru lane is within 250 feet of a residence and/or residentially zoned property.
The 2021 staff report analyzed the use, based on its layout and proximity to residences , was consistent and similar to other fast-food drive-thru uses approved in the city which were located within 250-feet of a residence or residentially zoned parcel.
Conditions of Approval and Limitation to Hours of Operation Planning Commission meeting of August 23, 2021
During the public hearing, the applicant clarified to the Planning Commission that the fast -food restaurant was seeking to operate 24 hours a day which was not consistent with the hours noted on the application form which listed operating hours from 6:00 A.M. to 12:00 A.M. (midnight). Staff stated during the presentation of the item that fast food facilities were not limited to specific operating hours in the Municipal Code but would have to comply with the Noise Ordinance (VMC Chapter 8.36). Additionally, none of the other four Jack in The Box 1362
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restaurants in Visalia operated with limited hours. Additional testimony was received from a member of the public who spoke and shared their concerns for the 24/7 operating hours, based on the projects proximity to abutting residences and Pinkham Elementary School which is approximately 1,321-feet to the west.
Discussion amongst the Planning Commissioners resulted in the Commission concluding that it might be more appropriate for the applicant to reconsider requesting 24/7 operational hours once more commercial development came to the site and provided more buffer to the abutting residences. The project was approved subject to a condition that limited the hours of operation as described in this staff report.
Staff Analysis
The applicant has provided a narrative and letter to the Commission in Exhibits “B” and “C” in support of their request to modify the hours of operation for the Jack in the Box fast -food restaurant. Both exhibits by the applicant identif y the project’s compliance with the municipal code, operational history at the site, and no public complaint s received at the site . The applicant attributes their success of operating a business in compliance with all City codes due to the management structure in which the business is operated. Additionally, the applicant identifies that “the need to operate 24/7 is directly tied to the increased minimum wage requirement by the State”.
Based on reviewing the sites operating history, staff supports the request of the applicant, on the basis that the project site and operator have operated in good standing over the past year without any issues reported to the Neighborhood Preservation / Code Enforcement Division.
Approving the modified hours of operation would not be inconsistent. There have been several similar approvals for fast -food restaurants to operate 24 hours a day within proximity of residential development. If the Planning Commission were to approve this request, the business is still subject to compliance with the City’s Noise Ordinance. If substantiated complaints are received, it would result in the site being declared a public nuisance, staff would seek to initiate the process of getting the business/site into compliance including initiating the CUP amendment process to modify hours of operation.
Environmental Review
The requeste d action is considered Categorically Exempt under Section 15301 of the Guidelines for the Implementation of the California Environmental Quality Act (CEQA). (Categorical Exemption No. 2024-40). Projects determined to meet this classification consist of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of the use beyond that existing at the time of the lead agency’s determination. The types of “existing facilities” itemized in the Class 1 are not intended to be all-inclusive of the types of projects.
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RECOMMENDED FINDINGS
1. That the proposed project will not be detrimental to the public health, safety, or welfare, or materially injurious to properties or improvements in the vicinity.
2. That the proposed conditional use permit is consistent with the policies and intent of the General Plan and Zoning Ordinance. Specifically, the project is consistent with the required findings of Zoning Ordinance Section 17.38.110:
a. The proposed location of the conditional use permit is in accordance with the objectives of the Zoning Ordinance and the purposes of the zone in which the site is located. The project site has adequate ingress and egress and parking for the proposed fast -food restaurant.
b. The proposed location of the conditional use and the conditions under which it would be operated or maintained will not be detrimental to the public health, safety, or welfare, or materially injurious to properties or improvements in the vicinity. The project site has adequate ingress and egress and parking for the proposed fast-food restaurant.
3. That the project is considered Categorically Exempt under Section 15301 of the Guidelines for the Implementation of the California Environmental Quality Act (CEQA). (Categorical Exemption No. 2024-40).
RECOMMENDED CONDITIONS OF APPROVAL
1. That all conditions of Conditional Use Permit No. 2021 -22, adopted per Resolution No. 2021-42 shall remain applicable, except for the hours of operation as revised by this Conditional Use Permit.
2. The hours of operation shall be modified to allow 24 -hour, 7-day a week operation of the Jack in the Box Restaurant on the site.
3. Failure to comply with all conditions as set forth may result in the revocation of Conditional Use Permit No. 2024-29, per Visalia Municipal Code Section No. 17.38.040.
APPEAL INFORMATION
According to the City of Visalia Zoning Ordinance Section 17.02.145, an appeal to the City Council may be submitted within ten days following the date of a decision by the Planning Commission. An appeal with applicable fees shall be in writing and shall be filed with the City Clerk at 220 North Santa Fe Street, Visalia California. The appeal shall specify errors or abuses of discretion by the Planning Commission, or decisions not supported by the evidence in the record. The appeal form can be found on the city’s website www.visalia.city or from the City Clerk.
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Attachments:
• Related Plans and Policies
• Resolution
• Exhibit “A” – Project Narrative
• Exhibit “B” – Letter to the Commission
• Site Plan Review Comments
• General Plan Land Use Map
• Zoning Map
• Aerial Photo
• Location Map
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Related Plans and Policies
Chapter 17.18: PLANNED COMMERCIAL ZONES
17.18.060 Development standards in the C-N zone.
The following development standards shall apply to property located in the C -N zone:
A. Minimum site area: five (5) acres.
B. Maximum building height: fifty (50) feet.
C. Minimum required yards (building setbacks):
1. Front: fifteen (15) feet;
2. Rear: zero (0) feet;
3. Rear yards abutting an R-1 or R-M zone district: fifteen (15) feet;
4. Side: zero (0) feet;
5. Side yards abutting an R-1 or R-M zone district: fifteen (15) feet;
6. Street side yard on corner lot: ten (10) feet.
D. Minimum required landscaped yard (setback) areas:
1. Front: fifteen (15) feet;
2. Rear: five (5) feet (except where a building is located on side property line);
3. Rear yards abutting an R-1 or R-M zone district: five (5) feet;
4. Side: five (5) feet (except where a building is located on side property line);
5. Side yards abutting an R-1 or R-M zone district: five (5) feet;
6. Street side on corner lot: ten (10) feet.
D.1.163 Drive-thru lanes performance standards.
A. Purpose and Intent. It is the purpose of this section to specify performance standards applicable to uses that seek to incorporate a drive-thru lane in association with a specified use. This section does not apply to carwashes and lube and oil changing stations.
B. Performance standards:
1. Separation from residences. The drive-thru lane shall be no less than two hundred fifty (250) feet from the nearest residence or residentially zoned property.
2. Stacking. The drive-thru lane shall contain no less than ten (10) vehicle stacking, measured from pickup window to the designated entrance to the drive-thru lane. There shall be no less than three vehicle spaces distance from the order menu/speaker (or like device) to the designated entrance to the order window.
3. Circulation. No portion of the drive-thru lane shall obstruct any drive aisles or required on-site parking. The drive-thru shall not take ingress or egress from a local residential road.
4. Noise. No component or aspect of the drive-thru lane or its operation shall generate noise levels in excess of 60 dB between the hours of 7:00 p.m. and 6:00 a.m. daily.
5. Screening. The entire drive-thru lane shall be screened from adjacent street and residential view to a height of three feet. Screening devices shall be a combination of berming, hedge and landscape materials, and solid walls as approved by the City Planner.
6. Menu boards and signage. Shall be oriented or screened to avoid direct visibility from adjacent public streets. (Ord. 2017-01 (part), 2017: Ord. 2014-07 § 3, 2014) 1366
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Table 17.25.030
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Resolution No. 2024-46
RESOLUTION NO. 2024-46
A RESOLUTION OF THE PLANNING COMMISSION OF THE
CITY OF VISALIA APPROVING CONDITIONAL USE PERMIT NO. 2024-29, A REQUEST BY MIKE DAVIS TO AMEND CONDITION OF APPROVAL NO. 10 OF CONDITIONAL USE PERMIT NO. 2021-22, LIMITING THE HOURS OF OPERATIONS FROM 5:00 A.M. TO 12:00 A.M. FOR A JACK IN THE BOX FAST FOOD RESTAURANT IN THE NEIGHBORHOOD COMMERCIAL (C-N) ZONE. THE PROJECT SITE IS LOCATED AT 1145 SOUTH LOVERS LANE (APN: 100-120-051).
WHEREAS, Conditional Use Permit No. 2024-29 is A request by Mike Davis to amend Condition of Approval No. 10 of Conditional Use Permit No. 2021 -22, limiting the hours of operations from 5:00 A.M. to 12:00 A.M. for a Jack in the Box fast food restaurant in the Neighborhood Commercial (C -N) zone. The project site is located at 1145 South Lovers Lane (APN: 100-120-051).; and
WHEREAS, the Planning Commission of the City of Visalia, after duly published notice, did hold a public hearing before said Commission on August 19, 2024; and
WHEREAS, the Planning Commission of the City of Visalia finds the Conditional Use Permit to be in accordance with Section 17.38.110 of the Zoning Ordinance of the City of Visalia based on the evidence contained in the staff report and testimony presented at the public hearing; and
WHEREAS, the Planning Commission finds the project to be Categorically Exempt consistent with the California Environmental Quality Act (CEQA) and City of Visalia Environmental Guidelines.
NOW, THEREFORE, BE IT RESOLVED that the project is exempt from further environmental review pursuant to CEQA Section 15301.
BE IT FURTHER RESOLVED that the Planning Commission of the City of Visalia makes the following specific findings based on the evidence presented:
1. That the proposed project will not be detrimental to the public health, safety, or welfare, or materially injurious to properties or improvements in the vicinity.
2. That the proposed conditional use permit is consistent with the policies and intent of the General Plan and Zoning Ordinance. Specifically, the project is consistent with the required findings of Zoning Ordinance Section 17.38.110:
a. The proposed location of the conditional use permit is in accordance with the objectives of the Zoning Ordinance and the purposes of the zone in which the site is located. The project site has adequate ingress and egress and parking for the proposed fast-food restaurant.
b. The proposed location of the conditional use and the conditions under which it would be operated or maintained will not be detrimental to the public health, safety, or welfare, or materially injurious to properties or improvements in the vicinity. The project site has adequate ingress and egress and parking for the proposed fast-food restaurant.
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Resolution No. 2024-46
3. That the project is considered Categorically Exempt under Section 15301 of the Guidelines for the Implementation of the California Environmental Quality Act (CEQA). (Categorical Exemption No. 2024-40).
BE IT FURTHER RESOLVED that the Planning Commission hereby approves the Conditional Use Permit on the real property here described in accordance with the terms of this resolution under the provisions of Section 17.38.110 of the Ordinance Code of the City of Visalia, subject to the following conditions:
1. That all conditions of Conditional Use Permit No. 2021 -22, adopted per Resolution No. 2021-42 shall remain applicable, except for the hours of operation as revised by this Conditional Use Permit.
2. The hours of operation shall be modified to allow 24 -hour, 7-day a week operation of the Jack in the Box Restaurant on the site.
3. Failure to comply with all conditions as set forth may result in the revocation of Conditional Use Permit No. 2024 -29, per Visalia Municipal Code Section No.
17.38.040.
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To whom it may concern:
The owner/operator of the Jack in the Box restaurant location at 1145 S. Lovers Lane (northwest corner of Lovers Lane and Tulare Avenue) is requesting a CUP amendment to revise the hours of operation to 24-hours per day.
Per Condition 10 of Resolution No. 2021-42, the operation hours are restricted to 5:00AM to midnight. The operator has determined that in order to maximize sales revenue, it is in their best interest to provide 24-hour service.
This restaurant represents the closest quick-serve restaurant to a large portion of Visalia residents, especially those living east of Lovers Lane, so the increased hours of operation would provide options to those who may be seeking food during this timeframe.
The 24-hour operations would be in line with other nearby commercial properties along Lovers Lane which are listed as 24-hour (including Shell at Lovers Lane & Walnut and both ARCO/AMPM and 7-Eleven at Lovers Lane & Noble).
This location does not provide any outdoor dining and focuses primarily on drive- thru service, which would mitigate noise concerns due to patrons conversing outside the restaurant or in the parking lot. The drive-thru speaker is approximately 200 feet from the adjacent residences (measured from the speaker to the home structure).
The drive-thru lanes are oriented such that vehicles would point east and north, with their headlights directed away from the adjacent residences. It is assumed that customer volumes at this time will be relatively low, so drive-thru patrons may order promptly and pull to the service window on the east side of the building by Lovers Lane, where the building will provide shielding and there would not be a large queue lane generated parallel to Tulare closer to the homes. As such, it is assumed that the additional operational hours would not adversely impact the nearby residents.
Exhibit "A"
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To: Visalia City Planning Commission
From: Mike Davis & Patrice Roux
Re: Amendment to Conditional Use Permit 2024-29 (August 12, 2024 Meeting)
HISTORY
VTP Enterprises has been a part of the community of the Central Valley since 1987. VTP even took its name by combining the initials of the cities it felt closest to (Visalia, Tulare, and Porterville). Back in 1987, VTP started with 5 Jack in the Box restaurants. By 2016, the count was up to 14.
GROWTH
VTP has expanded its JIB restaurant sites by opening new restaurants in 2016 (Farmersville), 2019 (Plaza), 2020 (Bardsley), 2022 (Shannon), 2023 (Lovers Lane).
Currently we are on schedule to open new JIB sites in late 2024 (Oaks Marketplace), 2025 (Exeter), 2025 (Orosi), 2025 (Demaree).
COST TO DO BUSINESS
We have choice to make as business owners. As our costs go up, prices follow. One of the major reasons we are requesting 24/7 service is to help minimize price increases. The increases are directly related to the in in the minimum wage to $20. We prefer to provide more jobs than to simply raise prices. If we are granted 24/7 service, we anticipate adding 4 full time positions at our Lovers Lane location.
Due to the high cost of food and labor, these days most Quick Service Restaurants are not open 24/7.
The difference with our Brand is that Jack in the Box caters and advertises to the late-night crowd. In fact, our restaurants have 40% of our day-to-day sales come after 9pm.
OUR NEIGHBORHOOD
Since we opened on May 8, 2023, we have yet to have one complaint on any issue from any neighbor.
We keep our site clean and well landscaped.
CURRENT HOURS
Our Lovers Lane site is currently open from 5am – Midnight. We respectfully request you grant us 24/7 service.
Thank you,
Mike Davis & Patrice Roux
Current partners of VTP Enterprises
Exhibit "B"
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Location of
3-ft wall
E. Tulare Ave.
S. Lovers Lane
Attachment No. 5
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City of Visalia
To: Planning Commission
From: Josh Dan, Senior Planner (559-713-4003)
Date: January 21, 2025
Re: Late Correspondence for City Council Regular Items and Public Hearings Agenda Item No. 3:
Appeal of the Planning C ommission Action - A Public Hearing to consider an appeal of the Planning Commission’s denial of Conditional Use Permit No. 2024-29, which was a request to amend the hours of operation for the Jack in the Box drive-thru facility to 24 -hours located at 1145 South Lovers Lane, in the Neighborhood Commercial zone.
Recommendation
The Planning Division received the attached three e-mail correspondences, after the agenda was compiled and published. One of the letters is in support of the request to amend the hours to a 24- hour operation, while the other two are in opposition.
ATTACHMENTS
• Letter via e-mail, received January 17, 2025
• Letter via e-mail, received January 21, 2025
• Letter via e-mail, received January 21, 2025
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1 Josh Dan
From: B. H. <[email protected]>
Sent: Friday, January 17, 2025 1:01 PM
To: Josh Dan
Cc: B. “Clean is Less Mean” H.
Subject: Jack in the box issue on agenda , citizen inquiry What's your take on the appeal?
Needs to be 24 hours imo ..support the appeal
This business owner is helping our economy and giving folks at the bottom rungs of the work ladder ...jobs!!!
B.
No way is this an attractive nuisance
Instead just the reverse....these far away areas way out on Lovers Lane are subject to regular vandalism and other crimes ...having staff their 24 hours is eyes and ears in the neighborhood 23/7/365 almost to a degree like unpaid security...
All up and down Ben Maddox ....overnight breakins were the thing probably still is
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1 Josh Dan
From: Paul Bernal
Sent: Tuesday, January 21, 2025 10:20 AM
To: Josh Dan
Subject: FW: Permit No. 2024-29.
Importance: High
FYI
From: Jennifer Gomez <[email protected]>
Sent: Tuesday, January 21, 2025 9:36 AM
To: Leslie Caviglia <[email protected]>; Paul Bernal <[email protected]> Subject: FW: Permit No. 2024-29.
For your information.
I will also print out a copy of the email and file it with the agenda packet.
Jennifer
From: Nicole Villanueva <[email protected]>
Sent: Tuesday, January 21, 2025 9:27 AM
To: Jennifer Gomez <[email protected]>
Subject: Permit No. 2024-29.
I am writing my concerns for jack in the box on loverslane in Visalia ca.I live across the street from jack in the box my address is 2915 E Laurel Ave, Visalia CA 93292.I don’t approve of a 24 hour the agreement when built was not 24 hours and I feel like it will create gang activity young kids hang out so it would be loud and disturbing our sleep and pease.so I disapprove of a 24 hour thanks for listening to my concerns.Thanks Nicole Villanueva.
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1 Josh Dan
From: Colleen Moreno
Sent: Tuesday, January 21, 2025 2:19 PM
To: Josh Dan
Subject: Jack in the Box - Tulare & Lovers Lane - Against Hey Josh,
We received a phone call on the hotline regarding the Jack in the Box hours at the location above. The homeowner at 2947 E Meadow Ave called in as he is unable to attend the meeting due to a back injury and does not have access to a computer to submit his comment but received the mailer notiÞcation with the hotline number.
He is against the request for the Jack in the Box as he feels the increase of hours will result in more homeless in the neighborhood, which is very close to the residential homes, as well as an increase in late night parking lot activity, such as racing, speeding, etc. as that is currently happening at the gas stations at the corner of Lovers Lane and Noble and with the increase of hours, could potentially make this location a nuisance to the neighborhood.
Contact: Robert Ayers – 559-732-6849
Thanks,
700
General Plan
Land Use Map
E Tulare Ave
S Lovers Lane
S Arkle St
E Laurel Ave
Vicinity Map
Dinuba
Riggin
Mooney
Court
Demaree
M
a i n
Walnut
G o s h e n
H o u s t o n
Noble
Lovers Lane
Akers
Hwy 99
Shirk
P
l
a
z
a
Betty
Hwy 198
.Commercia Mixed Use
Commercial Neighborhood
Office
Residential Low Density
Project Site
0 0.01 0.030.01 Miles
701
Zoning Map
E Tulare Ave
S Lovers Lane
S Arkle St
E Laurel Ave
Vicinity Map
Dinuba
Riggin
Mooney
Demaree
Court
M
a i n
Walnut
G o s h e n
H o u s t o n
Noble
Lovers Lane
Caldwell
Akers
Hwy 99 Shirk
P
l
a
z
a
Betty
Hwy 198
.
C-N Neighborhood Commercial
C-MU Mixed Use Commercial
O-PA Professional / Admin Office
R-1-5 Single-family Residenital
Project Site
0 0.01 0.030.01 Miles
702
Aerial Map
E Tulare Ave
S Lovers Lane
S Arkle St
E Laurel Ave
Vicinity Map
Dinuba
Riggin
Mooney
Demaree
M
a i n
Walnut
G o s h e n
H o u s t o n
Noble
Lovers Lane
Caldwell
Akers
Hwy 99 Shirk
P
l
a
z
a
Betty
Hwy 198
.
Project Site
0 0.02 0.040.01 Miles
703
Vicinity
E Tulare Ave
S Lovers Lane
S Arkle St
E Laurel Ave
Vicinity Map
Dinuba
Riggin
Mooney
Demaree
Court
M
a i n
Walnut
G o s h e n
H o u s t o n
Noble
Lovers Lane
Caldwell
Akers
Hwy 99 Shirk
P
l
a
z
a
Betty
Hwy 198
.
Project Site
0 0.01 0.030.01 Miles
704
CITY OF VISALIA
C i t y C o u n c i l H e a r i n g
J a n u a r y 2 1 , 2 0 2 5
Appeal of Planning Commission Denial of:
CUP 2024-29: Jack in the Box Amendment
City of Visalia - Planning Division
705
City of Visalia - Planning Division
Department
Recommendation
• Receive staff presentation,
• Hold public hearing, and,
• Adopt Resolution No. 2024-52 denying
the appeal and upholding the Planning
Commission’s denial.
706
City of Visalia - Planning Division
Alternative
Motions
1. Overturn the decision of the Planning Commission and approve Conditional Use Permit No. 2024-29, subject to the applicant constructing a three-foot tall block wall to border the entirety of the drive-thru lane to provide immediate screening and to install landscaping vegetation to screen the wall as the vegetation matures, the construction of the three foot block wall and additional landscaping will require the submittal of building plans for review and approval along with issuance of a building permit (see Attachment 5); or
2. Direct the applicant to conduct further outreach to the neighborhood; or
3. Continue the matter to a future City Council hearing. 707
City of Visalia - Planning Division
Summary
The applicant is appealing the decision of the Planning Commission’s denial to amend the hours of operation for a Jack in the Box fast-food restaurant • Previously approved per Conditional Use Permit (CUP) No. 2021-22, • Located at 1145 South Lovers Lane.
• The amendment request was to modify the operating hours from 5:00 a.m. to 12:00 a.m. (midnight), as originally conditioned by the Planning Commission, to 24-hours a day. • The Planning Commission initially adopted the hours of operations after receiving public comment (in 2021) in opposition to the applicant’s initial request to permit this fast-food restaurant to operate 24-hours a day.
• At the September 16, 2024, City Council meeting, the City Council heard from the applicant and one person from the public who opposed the requested amendment. • Council requested the applicant and neighbor work together to find a solution that both parties could come to an agreement on and return once that agreement had been achieved. 708
City of Visalia - Planning Division
Summary Continued
• Council requested the applicant and neighbor work together to find a solution that both parties could come to an agreement on and return once that agreement had been achieved.
• Since that time:
• The applicant reached out to the neighbor to find an amicable solution for both parties and the applicant detailed that the neighbor has not been willing to find an amicable solution. • This led the applicant to suggest the planting of more landscape shrubbery along the drive-thru lane to better screen the lane and vehicle headlights.
709
City of Visalia - Planning Division
LOCATION
DESCRIPTION
• Previous CUP No. 2021-22
was approved on August
23, 2021.
• Condition No. 10 was
added limiting hours.
• Hours have been limited
from 5:00AM to 12:00AM
(midnight)
2021
2024
710
Neighborhood Commercial
PROJECT SITE
ZONING
711
712
City of Visalia - Planning
713
714
City of Visalia - Planning
Background and Discussion
• On August 23, 2021, CUP No. 2021-22 was presented to the Planning Commission requesting to permit the development of approximately 1.12-acres of C-N zoned property with a 1,315 square foot Jack in the Box restaurant. • The fast-food restaurant was designed with only a walk-up window and drive-thru lane; with no indoor dining provided. • Fast food restaurant uses, with a drive-thru lane, are considered a “permitted use” in the C-N zone subject to the drive-thru performance standards established in Section 17.32.162 of the Visalia Municipal Code (VMC). • A Conditional Use Permit was warranted based on the drive-thru not complying with subsection B(1) of the above reference section, in which the drive-thru lane is within 250 feet of a residence and/or residentially zoned property. • The applicant clarified, during the public hearing, that the fast-food restaurant was seeking to operate 24-hours a day. • Fast-food facilities are not limited to specific operating hours in the Municipal Code but would have to comply with the Noise Ordinance (VMC Chapter 8.36).
• None of the other Jack in the Box restaurants in Visalia operate with limited hours. • The Planning Commission deliberation on the 24-hour operation request, concluded that it would be appropriate for the applicant to reconsider requesting 24/7 operational hours once more commercial development came to the site which may provide additional buffers to the nearby residential homes. • The Planning Commission, understanding the concern, opted to include Condition No. 10 limiting the hours of operation from 5:00 A.M. to 12:00 P.M. (midnight).
• Construction of the Jack in the Box restaurant was completed on September 21, 2022. The applicant had inquired with staff on multiple occasions to amend the hours of operation condition. Through these discussions, staff encouraged the applicant to operate for at least a year and then consider an amendment to the approved entitlement. 715
City of Visalia - Planning
Background and Discussion Cont.
• On August 12, 2024, CUP No. 2024-29 was heard before the Planning Commission. • This amendment request was seeking to expand the restaurant’s hours of operation to 24-hours a day. • The applicant provided a narrative and letter to the Commission in Planning Commission in support of their request to modify the hours of operation for the Jack in the Box fast-food restaurant. • The applicant attributed their success of operating a business in compliance with all City codes due to the management structure in which the business is operated.
• Additionally, the applicant identified that “the need to operate 24/7 is directly tied to the increased minimum wage requirement by the State”. • Staff supported the request of the applicant, on the basis that the project site and operator have operated in good standing over the past year without any issues reported to the Neighborhood Preservation / Code Enforcement Division.
• During the public comment period, the Planning Commission received verbal and written comments detailing concern with the request for extended hours of operation as it would have an adverse impact on neighboring sensitive land uses.
• During the Planning Commission’s deliberation, a majority of the Commissioners noted the request to operate 24-hours a day would pose incompatibility issues with the existing residential uses in close proximity. • Commissioners also identified that other sites in the City operating 24-hours a day are not as closely located to sensitive land uses, having other commercial buffers between them and neighboring residences. • Based on issues stated by the Planning Commission, the Commission denied the CUP amendment by a 5-0 vote. A copy of the Planning Commission staff report is attached to this report as Attachment 2. 716
City of Visalia - Planning
Appeal Analysis
• The Planning Commission’s discussion, which ultimately lead to their recommendation to deny the project, focused on the project’s inconsistency with the surrounding residential uses. • Several of the Planning Commissioners stated that the proposed amended hours of operation to a 24-hour drive thru- use is not compatible with adjacent residential land uses because the project's proximity to sensitive land uses, and requested intensification of operating hours, will have a direct impact to the neighboring residential uses by interfering with the enjoyment of properties in the existing neighborhoods that are adjacent or nearby the project site, and would therefore be materially injurious to properties or improvements in the vicinity. In addition, none of the conditions proposed would have the effect of eliminating the injurious effect of the project on the neighboring properties • The Planning Commission denied Conditional Use Permit No. 2024-29, Pursuant to Section 17.38.110, Subsection A of the Zoning Ordinance of the City of Visalia.
• It was determined that the proposed use is not consistent with the policies and intent of the General Plan and Zoning Ordinance. • The request to amend the existing Jack in the Box operating hours to 24-hour is not compatible with the existing residential character of existing neighborhoods to the west, southwest, and east of the site and none of the conditions proposed will have the effect of eliminating the inconsistency within the surrounding area.
• It is within the purview of the Planning Commission to deny a Conditional Use Permit if the Commission feels that the project does not meet the required findings.
717
City of Visalia - Planning Division
RECOMMENDATION
Deny the approval and upholding the Planning
Commission’s denial of Conditional Use Permit
No. 2024-29
Staff Recommends
Alternative Motion
1. Overturn the decision of the Planning Commission and approve Conditional Use Permit No. 2024-29, subject to the applicant constructing a three-foot tall block wall to border the entirety of the drive-thru lane to provide immediate screening and to install landscaping vegetation to screen the wall as the vegetation matures, the construction of the three foot block wall and additional landscaping will require the submittal of building plans for review and approval along with issuance of a building permit (see Attachment 5); or
2. Direct the applicant to conduct further outreach to the neighborhood; or
3. Continue the matter to a future City Council hearing. 718
City of Visalia - Planning Division
QUESTIONS
719
City of Visalia - Planning
Wall Location
720
721
City of Visalia - Planning
722
723
Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 24-0592 Agenda Date: 2/3/2025 Agenda #: 1.
Agenda Item Wording:
Upcoming City Council Meetings
Tuesday, February 18, 2025 @ 7:00 p.m. at 707 W. Acequia Monday, March 3, 2025 @ 7:00 p.m. at 707 W. Acequia
Note: Meeting dates and times are subject to change, check posted agenda for correct details. In compliance with the American Disabilities Act, if you need special assistance to participate in meetings contact 713-4512.
Written materials relating to an item on this agenda submitted to the Council after distribution of the agenda are available for public inspection in the Office of the City Clerk, 220 N. Santa Fe Street, Visalia CA 93292, during normal business hours.
Visalia City Council Printed on 1/30/2025Page 1 of 1
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