Item No. 4
CITY oP
� 9D
DATE:
TO:
FROM:
PREPARED BY:
STAFF REPORT
January 26, 2026
Honorable Mayor and City Council
Dr. Sean M. Moore, City Manager
Benjamin J. Matlock, Deputy Director of Community Development SUBJECT: Yucaipa RM-24 (High Density Multiple Residential) Land Use District review process and related housing laws as they apply to Planning Case PLN-ADM-25-0027, a 258-unit multifamily residential community on approximately 8.39 acres within the RM-24 Land Use District; located between 3rd Street to the west and 2nd Street to the east, approximately 375 feet north of County Line Road.
RECOMMENDATION:
That the City Council:
Receive and file a presentation regarding the City's review, approval and general entitlement process of multifamily residential projects in the RM-24 (High Density Multiple Residential) Land Use District, including the applicability of the State of California's housing laws; or
2. Provide further direction to staff.
BACKGROUND/DISCUSSION:
At the January 12, 2026, Council Meeting, Council directed staff to provide information on the City's RM-24 Land Use District review process, as well as other key pieces of State and/or Federal legislation, which relate to proposed multifamily housing projects and more specifically, the review and approval of Case No. PLN-ADM-25-0027, a 258-unit multifamily residential community on approximately 8.39 acres within the RM-24 Land Use District. Because the property is located within the RM-24 (High Density Multiple Residential) Land Use District, any housing project that meets the objective standards of the Development Code is permitted as a "by right use." RM-24 Land Use District:
The City's General Plan identifies that the RM-24 Land Use District "provides sites for high quality multiple family housing that may include units affordable to lower income households" at a density of 24 unit per acre and allows "units permitted by right pursuant to administrative review procedures and architectural design standards." This review process is to comply with Section 65583.2 of the Government Code (GC), where housing elements must plan for suitable land for
affordable housing that is a "use by right," and this process was first enacted by the City in 2010 to comply with the then -current Housing Element. However, state law does allow for a local ordinance to include design review, which is the case for the City of Yucaipa and more specifically, Case No. PLN-ADM-25-0027. In addition, the City allows for buildings up to 45 feet tall.
It should be noted that the state's default baseline density for affordable housing in Yucaipa, as specified in 65583.2(c)(3)(B) of the GC, would be 30 units per acre. However, the City was able to demonstrate to the California Department of Housing and Community Development (HCD) that 24 units per acre was feasible. Neighboring jurisdictions, such as the City of Calimesa, could not make such findings and must allow higher density housing projects in those jurisdictions.
The subject project, Case No. PLN-ADM-25-0027, was zoned as RM-24 in early 2023 by the City Council. Following the development of construction plans for a 172-unit project, the site ownership was modified, and a new project was designed. Based on the current standards, any subsequent project that is proposed would be a "use by right" and subject to design review. This required design review was completed at the regular Planning Commission meeting of December 17, 2025.
Front Elevations of PLN-ADM-25-0027
Housing Accountability Act and Senate Bill 330:
Section 65589.5 of the GC, known as the Housing Accountability Act, was first enacted in 1982 to limit local governments' ability to deny, make infeasible, or reduce the density of housing development projects. However, recent updates have substantially strengthened this law. One of the most significant laws was Senate Bill (SB) 330 that imposes new limitations for reviewing any housing project. Applicable provisions are listed below.
The City may conduct no more than five hearings on the project. • The City may use only objective development standards. Objective standards are those that are directly measurable and would not be subject to interpretation'. • Requires any potential disapproval or reduction of units for a project that complies with objective General Plan and zoning standards to base its decision upon written findings 1 A recess in the building plane of 5 feet is an objective standard, whereas "compatible with the neighborhood" is not objective
supported by substantial evidence that the project will have a "specific, adverse impact upon the public health or safety unless the project is disapproved or approved upon the condition that the project be developed at a lower density." The burden of proof for such findings falls on the local agency and has very narrow parameters that are difficult to maker. • Prohibits the City from changing the zoning or development standards that would: impose or enforce a moratorium on housing development within all or a portion of the jurisdiction of the city.
The result of these laws is that the amount of discretion for cities is extremely limited, and many potential housing projects are unable to be denied or substantially modified. It is therefore important to ensure that appropriate objective standards are in place to best mitigate potential issues and provide for the best outcome.
Density Bonus Law:
California's Density Bonus Law (Gov. Code §§65915 - 65918) allows an automatic increase in the permissible density allowed by the City's General Plan as part of the development of a property. In exchange for the increased density, a certain number of new affordable dwelling units or senior housing must be provided. The Density Bonus Law generally works through a sliding scale process — the higher percentage of affordable units, or the higher the overall affordability, the higher number of units may be built.
As part of the process, developers may qualify for a fixed number of incentives to help reduce the overall project costs. In addition, all density bonus projects are eligible for waivers, which allows exceptions to the City's applicable development standards if they directly limit the ability of the project to achieve its permissible density. Standards such as setbacks, heights, and other similar elements can be modified so that the project can be effectively constructed. Both the Density Bonus request, as well as any waivers and incentives associated with that request are a "by right" action, meaning that the City does not have the discretion to disapprove such requests. In addition, waivers requested cannot be used against a project in determining if it meets the City's objective standards.
For PLN-ADM-25-0027, the applicant had submitted a Density Bonus request proposing to covenant fifteen percent (15%) of the total units —equivalent to thirty-one (31) of the base density allowance of 202 units —as deed -restricted affordable housing for low-income households. This level of affordability qualifies the project for a 27.5% density bonus, permitting an increase in the allowable number of units under the RM-24 zoning district and enabling the project to reach the proposed 258-unit density.
Regional Housing Needs Assessment:
One of the key elements that drive housing law is the Regional Housing Needs Assessment (RHNA). For the 6th Housing Cycle (2021-2029), the City of Yucaipa was obligated to "provide" 2,866 dwelling units over the 8-year projection period and is split between different income levels to provide housing for all Yucaipa residents. 31 deed -restricted low-income units will be provided 1 If this finding is incorrectly made, the state can issue a $10,000 fine per each unit denied pursuant to SB 167, and would still require the City to approve such project at the originally proposed density.
as part of this Project. Once rents are known, additional units may be counted under a "non -deed - restricted" category.
It should be noted that residents did reach out following the Planning Commission meeting on the Project to see if an interest list was available for the Project so that they could sign up and qualify for one of the units.