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HomeMy WebLinkAboutZOA 19-0004 AFFORDABLE HOUSING OVERLAY STAFF REPORT CITY OF PALM DESERT COMMUNITY DEVELOPMENT DEPARTMENT DATE: February 27, 2020 PREPARED BY: Eric Ceja, Principal Planner REQUEST: Consideration of a Zoning Ordinance Amendment to amend the Palm Desert Municipal Code and replace Section 25.28.030 "Medium/High- Density Housing Overlay District' in its entirety with a new "Housing Overlay District,"and apply said overlay district to parcels identified in the City's Housing Element and parcels owned by the Housing Authority; and adoption of a Notice of Exemption in accordance with the California Environmental Quality Act, Case No. ZOA 19-0004. Recommendation That the City Council waive further reading and pass to second reading: a. City Council Ordinance No.1352 , approving Zoning Ordinance Amendment 19-0004, replacing Palm Desert Municipal Code Section 25.28.030 with a new "Housing Overlay District" and adopt a Notice of Exemption. b. City Council Ordinance No. 1153 , applying the "Housing Overlay District" to parcels identified in Exhibit A of this Ordinance. Planninq Commission Recommendation At its meeting of February 4, 2020, the Planning Commission considered the Zoning Ordinance Amendment to replace the "Medium/High Density Housing Overlay District"with the "Housing Overlay District" The Planning Commission voted 4-0 (Commissioner De Luna absent) in adopting Resolution Nos. 2772 and 2773 recommending approval of the Zoning Ordinance Amendment to the City Council. Strategic Plan Obiective The creation of the Housing Overlay District achieves the following Priorities outlined in the Envision Palm Desert Strategic Plan: Land Use, Housing & Open Space: Priority 2: Facilitate development of high-quality housing for people of all incomes. February 27, 2020— Staff Report ZOA 19-0004: Housing Overlay District Page 2 of 5 Transportation: Priority 3: De-emphasize single/low-occupancy vehicles and optimize multiple modes of travel (bus, carpool, golf cart, bicycle and pedestrian). Background Analysis On January 10, 2019, the City Council directed staff to form an ad-hoc `Affordable Housing Subcommittee"for the following: • Review the City's affordable housing and planning policies. • Review existing planning policies from around the State. • Perform a comparative analysis of available affordable housing with other Coachella Valley cities. • Explore affordable housing policy options for the City of Palm Desert. Throughout 2019, Community Development staff from the Planning and Housing Divisions worked with Councilmembers Harnik and Kelly to perform the tasks mentioned above. In October 2019, staff held an open house at City Hall and presented the findings and policy recommendations to the public. Based on that meeting, the subcommittee has initiated a Zoning Ordinance Amendment (ZOA) to establish a new and voluntary Housing Overlay District. Project Description Housing Overlay District: The proposed ordinance replaces the existing "Medium/High-Density Overlay District" (MHDO) with a new "Housing Overlay District" (HOD). The HOD intends to incentivize the development of affordable housing units in the City by providing optional development standards for housing developers that choose to dedicate at least 20% of all housing units constructed at affordable rents. By utilizing the HOD, housing developers are provided the following: • Flexible development standards. • Expedited application processing. • Waiver of a Planning Commission public hearing. • Density Bonuses in accordance with State Density Bonus provisions. • Reduced parking standards. • Potential waiver of City development impact fees. The HOD does not require property owners or residential housing developers to utilize the incentives provided in the overlay district. Rather, the HOD intends to encourage voluntary participation by developers to create new affordable housing units. G\Planning\Eric Ceja\Case F0es\Z0A\Z0A 19-OOG4 Housing Overlay\CC\CC Stall Report(2.27.20).doc February 27, 2020— Staff Report ZOA 19-0004: Housing Overlay District Page 3 of 5 Applicability. As recommended by the subcommittee, the HOD will be applied to parcels owned by the Housing Authority and properties, developed or undeveloped, and identified in the City's Housing Element. In discussing where to apply the HOD, the subcommittee looked at Housing Authority properties and the City's Housing Element. Housing Authority properties traditionally are developed with units at affordable rents, and generally receive density bonuses and parking reductions. There are two Housing Authority parcels recommended to receive the HOD. One property is located at the Desert ARC campus on Country Club Drive that is entitled to have 36 housing units for persons with special needs. The second property is an undeveloped 1.26-acre parcel located at the southeast corner of San Pascual Avenue and Santa Rosa Way. The Housing Authority anticipates soliciting developer interest in this parcel later this year. In 2013, the City Council adopted the Housing Element and established a minimum number of housing units for 10 parcels north of Frank Sinatra Drive. Two of those parcels: the Vineyard Apartments and Sage at Ponderosa are developed or under construction. The other eight parcels remain vacant or are currently in review with the Planning Department for new housing development. Applying the HOD to all 10 parcels will provide property owners an option to build affordable units on the parcels or build market-rate units. In the past, Planning staff has negotiated an affordable housing requirement for these parcels. The negotiations have resulted in significant delays, and many interested developers have chosen not to develop. The HOD will minimize the need to negotiate unduly and incentivize developers to provide affordable units within their projects. The map below identifies the parcels (included in Ordinance No. 1353 ). G9P1anning\Eric Ce)a\Case Files\ZOA\ZOA 19.0004 Mousing Oveday\CC\CC Statf Report(2.27.20).doc February 27, 2020 — Staff Report ZOA 19-0004: Housing Overlay District Page 4 of 5 rt� Y � F G CRY t01ac! �::. CITY N LTxpP' 1 a M, { . s�� 2 Yian 6. . 3PU1wOPl 1 { 'yp` PALM DESERT GENERAL PLAN HOUSING ELEMENT ,6--r 0 Medium/High-Density Housing Overlay District: The MHDO was established in 2013 as part of the comprehensive Zoning Ordinance Update. The purpose of the MHDO was to allow higher density residential development north of Frank Sinatra Drive in the undeveloped areas of the City previously referred to as the "University Park Area." In 2017, the City adopted a comprehensive General Plan update and the University Park Neighborhood Specific Plan. These documents provided policies that increased zoning densities and established neighborhood design criteria for the University Park Area. In 2018, the City updated the zoning standards and densities to be consistent with the General Plan. As such, the MHDO is no longer necessary. Rather than remove the overlay from the Zoning Ordinance, staff recommends replacing the overlay with the new HOD. Environmental Review The Director of Community Development has determined that the proposal to amend the Zoning Ordinance for the creation of the Housing Overlay District will not have an impact on the environment. Any development proposal that qualifies under the overlay zone will require an environmental review as part of the review of that project. GlPlanningVEne Cefa�:Case Plles120A20A 19 0004 Hoosmg Oveday=%CC Staff Report f227.20)doc February 27, 2020 — Staff Report ZOA 19-0004: Housing Overlay District Page 5of5 Findings of Approval Findings can be made in support of the project and in accordance with the City's Municipal Code. Findings in support of this Zoning Ordinance Amendment are contained in City Council Ordinance Nos. 1 352 and 1 i5-i , attached to this staff report. LEGAL REVIEW DEPT. REVIEW FINANCIAL ASSISTANT CITY REVIEW MANAGER *YtAv�llu N/A Robert . r6aves Ryan Stendell, Director of Janet Moore An ires ine City Attorney Community Development Director of Finance A is nt City Manager City Manager, Lauri A laian: ATTACHMENTS: 1. Draft City Council Ordinance No. 1352 2. Draft City Council Ordinance No. ]3-)3 2. Planning Commission Resolution No. 2772 & 2773 3. Planning Commission DRAFT Minutes February -4;, 2020 4. Housing Commission Minutes of January S, 2020 5. City Council Public Hearing Notice 6. CEQA Notice of Exemption G\Planning\Eric Ceja\Case Files 2OA\20A 19-0004 Housing Overlay\CC\CC Stall Report(2.27.20).doc ORDINANCE NO. 1352 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, ADOPTING A NOTICE OF EXEMPTION UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT; AND A ZONING ORDINANCE AMENDMENT TO REPLACE SECTION 25.28.030 "MEDIUM/HIGH DENSITY HOUSING OVERLAY DISTRICT" IN ITS ENTIRETY WITH A "HOUSING OVERLAY DISTRICT" CASE NO: ZOA 19-0004 WHEREAS, at its meeting of January 10, 2019, the City Council established an ad- hoc "Affordable Housing Policy Subcommittee" and directed the subcommittee to explore affordable housing policy options; and WHEREAS, the subcommittee reviewed policy options and met with stakeholders, and recommended moving forward with a Zoning Ordinance Amendment to establish a "Housing Overlay District" to incentivize the development of new housing units at affordable rents; and WHEREAS, the Housing Overlay District provides optional incentives for property owners and housing developers, who restrict at least 20% of all project units at affordable rents, by providing expedited application processing, potential development impact fee waivers, density bonuses, and reduced parking standards; and WHEREAS, the Planning Commission of the City of Palm Desert, California, did on the 41h day of February 2020, hold a duly noticed public hearing to consider the request by the City of Palm Desert for approval of the above-noted, and adopted Resolution Nos. 2772 and 2773, recommending that the City Council adopt the ZOA, and apply the overlay district to properties identified in the City's Housing Element and to Housing Authority properties; and WHEREAS, the City Council of the City of Palm Desert, California, did on the 27 1h day of January, 2020, hold a duly noticed public hearing to consider the request by the City of Palm Desert for approval of a ZOA, and has determined that the overlay district is consistent with the City's General Plan; and WHEREAS, at said public hearing, upon hearing and considering all testimony and arguments, if any, of all interested persons desiring to be heard, said City Council did find the following facts and reasons to exist to approve said request: NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Palm Desert, California, as follows: SECTION 1. Adoption of Recitals. The City Council hereby adopts the foregoing recitals as its findings in support of the following regulations and further finds that the following regulations are beneficial and appropriate to protect the health, safety, and welfare of the residents and businesses of Palm Desert within the City limits. SECTION 2. Amendment. The City Council of the City of Palm Desert hereby adopts the Zoning Ordinance Amendment replacing Palm Desert Municipal Code Section ORDINANCE NO. 25.28.030 "Medium/High Density Housing Overlay District' with a "Housing Overlay District" as identified in Exhibit "A" attached to this Ordinance. SECTION 3. Severability. If any provision of this ordinance or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of the ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this ordinance are severable. The City Council hereby declares that it would have adopted this ordinance irrespective of the invalidity of any particular portion thereof. SECTION 4. Publication. The City Clerk of the City of Palm Desert, California, is hereby directed to publish this ordinance in The Desert Sun, a newspaper of general circulation, published and circulated in the City of Palm Desert, California, and shall be in full force and in effect thirty (30) days after its adoption. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Palm Desert, California, at its regular meeting held on the 27'h day of February, 2020, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: GINA NESTANDE, MAYOR ATTEST: RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA GAPlannmg\Enc Ceja\Case Fues\ZOW70A 19.0004 Housing Overlay\CC\ZOA 19.0004 CC Ord•HOD.00c ORDINANCE NO. EXHIBIT A 25.28.030 Housing Overlay District A. Intent. The intent of overlay district is to incentivize the development of affordable housing units in the City of Palm Desert. B. Purpose and applicability. The purpose of the Housing Overlay District (HOD) is to provide optional standards and incentives for the development of a wide variety of housing developments, which provide a minimum of 20% of all units dedicated as income-restricted. The overlay zone is generally applied to properties identified in the City's Housing Element and Housing Authority owned properties as shown in Figure 25.28-1. Wherever the HOD has been added to a base zone, the applicant may choose whether to use the optional HOD standards and/or the standards of the base zone. C. Uses permitted by approved precise plan and conditional use permit. Uses permitted or conditionally permitted in the R-2 and PR zoning districts may be approved through an Architectural Review application process. Housing types applicable to the HOD include, but are not limited to, single-family detached/attached, duplex units, and multi-family development, either for rent or for sale. D. Development standards. Development standards shall be flexible to ensure efficient site planning and neighborhood compatibility and to reflect the unique requirements of integrating income-restricted units into market-rate housing developments. Flexibility to the base zone development standards may be utilized as part of the design review of an Architectural Review application. Design guidance contained in Section 25.20 "Downtown District Design Guidelines," and within the University Neighborhood Specific Plan shall be followed. E. Affordable Housing Requirement. To be eligible for the provisions of this chapter, rental housing development within the HOD shall provide a minimum of twenty percent (20%) of all units within the project at income-restricted rents, or at least one (1) unit for smaller residential projects. All fractional units shall be rounded up to the next whole number. F. Density and intensity. Project densities are established in the Zoning Ordinance and on the Zoning Map. Any mixed-use and residential project under this Chapter is eligible for a density bonus as allowed under State law. Formulas for density bonuses are contained in Palm Desert Municipal Code Chapter 25.34.040. 1. Unit sizes. Minimum allowable unit sizes in square feet (sf) shall vary according to presence or absence of common project amenities. Each unit shall contain, as a minimum, a kitchen including two (2) burners, an oven, a refrigerator/freezer, a sink, counter space, and storage. G\Ptanning\Enc CaImCasa Res\ZOAVOA 19.0004 Housing Oveday\CC\ZOA 19.000d CC Ord•HOD.doc ORDINANCE NO. G. Parking requirement. 1. Parking ratios based on bedroom count shall be calculated as follows: Table 25.28-1: Parking Required for Housing Overlay Bedroom Count Parking Ratio Studio/ 1 Bedroom 1.50 per unit 2 — 3 Bedrooms 2.00 per unit H. Development Impact Fees: Any mixed-use or residential project eligible under the overlay district may be subject to a fee waiver of City fees for all income-restricted units including plan check and inspection fees. The remainder of the project may be eligible for a reduction in fees if funding sources are available with the City's Affordable Housing funds. G\Planning\Edc Ceja\Case Files\ZOA\ZOA 19.0004 Housing Overlay\CC\ZOA 19-0004 CC Ord-HOD.doc ORDINANCE NO. 1353 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, TO APPLY THE HOUSING OVERLAY DISTRICT TO HOUSING AUTHORITY PARCELS AND PARCELS IDENTIFIED IN THE CITY'S HOUSING ELEMENT (APNS: 623-370-014, 627-120-013, 685-010- 005, 694-120-028, 694-130-016, 694-130-017, 694-190-087, 694-200-014, 694-200-024, 694-510-001, & 694-510-013) CASE NO: ZOA/CZ 19-0004 WHEREAS, at its meeting of January 10, 2019, the City Council established an ad- hoc "Affordable Housing Policy Subcommittee" and directed the subcommittee to explore affordable housing policy options; and WHEREAS, the subcommittee reviewed policy options and met with stakeholders, and recommended moving forward with a Zoning Ordinance Amendment to establish a "Housing Overlay District" to incentivize the development of new housing units at affordable rents; and WHEREAS, the Housing Overlay District provides optional incentives for property owners and housing developers, who restrict at least 20% of all project units at affordable rents, by providing expedited application processing, potential development impact fee waivers, density bonuses, and reduced parking standards; and WHEREAS, the Planning Commission of the City of Palm Desert, California, did on the 4'h day of February 2020, hold a duly noticed public hearing to consider the request by the City of Palm Desert for approval of the above-noted, and adopted Resolution Nos. 2772 and 2773, recommending that the City Council adopt the ZOA, and apply the overlay district to properties identified in the City's Housing Element and to Housing Authority properties; and WHEREAS, the City Council of the City of Palm Desert, California, did on the 271' day of January, 2020, hold a duly noticed public hearing to consider the request by the City of Palm Desert for approval of a ZOA, and has determined that applying the overlay district to said parcels is consistent with the General Plan; and WHEREAS, at said public hearing, upon hearing and considering all testimony and arguments, if any, of all interested persons desiring to be heard, said City Council did find the following facts and reasons to exist to approve said request: NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Palm Desert, California, as follows: SECTION 1. Adoption of Recitals. The City Council hereby adopts the foregoing recitals as its findings in support of the following regulations and further finds that the following regulations are beneficial and appropriate to protect the health, safety, and welfare of the residents and businesses of Palm Desert within the City limits. SECTION 2. Applicability. The City Council adopts this ordinance and applies the Housing Overlay District to Housing Authority parcels and parcels identified in the City's Housing Element and as identified in Exhibit "A" attached to this Ordinance. ORDINANCE NO. SECTION 3. Severability. If any provision of this ordinance or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of the ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this ordinance are severable. The City Council hereby declares that it would have adopted this ordinance irrespective of the invalidity of any particular portion thereof. SECTION 4. Publication. The City Clerk of the City of Palm Desert, California, is hereby directed to publish this ordinance in The Desert Sun, a newspaper of general circulation, published and circulated in the City of Palm Desert, California, and shall be in full force and in effect thirty (30) days after its adoption. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Palm Desert, California, at its regular meeting held on the 2711 day of February, 2020 by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: GINA NESTANDE, MAYOR ATTEST: RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA G\Planning\Eric Ceja\Case Flles\ZOA\ZOA 19.0004 Mousing OverlaoCC\ZOA 19-0004 CC Ord-Paroels.doc A Open Space Conventional Suburban Neighborhood Rural Neighborhood Golf Course & Resort Neighborhood E Small Town Neighborhood Town Center Neighborhood I H r Employment � �� B E Industrial ` Public Facility/Institutional Resort & Entertainment - Regional Retail Suburban Retail Center 1 Neighborhood Center i p r + w Downtown t # _ r �x G, L r j PALM DESERT GENERAL PLAN/ HOUSING ELEMENT t City of Palm Desert �YAtd/p CITY COUCIL ORDINANCE NO. Case No. ZOA 19-0004 Date: 2/27/2020 PLANNING COMMISSION RESOLUTION NO. 2772 A RESOLUTION BY THE PLANNING COMMISSION OF THE CITY OF PALM DESERT, CALIFORNIA, RECOMMENDING APPROVAL OF A ZONING ORDINANCE AMENDMENT TO AMEND AND REPLACE SECTION 25.28.030 "MEDIUM1HIGH-DENSITY HOUSING OVERLAY DISTRICT" WITH A"HOUSING OVERLAY DISTRICT,"AND TO PROVIDE INCENTIVES FOR THE VOLUNTARY CONSTRUCTION OF AFFORDABLE RENTAL UNITS IN NEW RESIDENTIAL PROJECTS CASE NO: ZOA 19-0004 WHEREAS, the Planning Commission of the City of Palm Desert, Califomia, did on the 41h day of February 2020, hold a duly noticed public hearing to consider the request by the City of Palm Desert for approval of the above-noted; and WHEREAS, the City Council, at their meeting of January 10, 2019, formed an "Affordable Housing Policy Subcommittee" and directed the subcommittee to explore affordable housing policy options; and WHEREAS, the subcommittee reviewed policy options and met with stakeholders, and recommended moving forward with a Zoning Ordinance Amendment to establish a "Housing Overlay District"to incentivize the development of new housing units at affordable rents; and WHEREAS, the Housing Overlay District provides optional incentives for property owners and housing developers, who restrict at least 20%of all project units at affordable rents, by providing expedited application processing, potential development impact fee waivers, density bonuses, and reduced parking standards; and WHEREAS, Planning Commission of the City of Palm Desert, in reviewing all the facts and any testimony given adopts the following as its Findings in recommended approval of the Zoning Ordinance Amendment to the City Council: SECTION 1. Findings. The Planning Commission of the City of Palm Desert hereby finds that: A. The City of Palm Desert (the "City"), California, is a municipal corporation, duly organized under the constitution, and laws of the State of California- B. The Planning and Zoning Law authorizes cities to establish by ordinance the regulations for land use and development. SECTION 2. Amendment. The Planning Commission of the City of Palm Desert recommends that the City Council of the City of Palm Desert, California, approve and adopt the Zoning Ordinance Amendment to replace Section 25.28.030 Medium/High-Density Housing Overlay District with a "Housing Overlay District"as shown in Exhibit A which is attached hereto and incorporated herewith. PLANNING COMMISSION RESOLUTION NO. 2772 SECTION 3. Severability. If any section, subsection, subdivision, paragraph, sentence, clause, or phrase in this ordinance or any part thereof is for any reason held to be ' unconstitutional or invalid or ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this ordinance or any part thereof. The Planning Commission hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase thereof irrespective of the fact that one (1) or more subsections, subdivisions, paragraphs, sentences, clauses, or phrases be declared unconstitutional, invalid, or ineffective. SECTION 4. California Environmental Quality Act Finding. The Planning Commission of the City of Palm Desert finds the adoption of this ordinance to be categorically exempt from the requirements of the California Environmental Quality Act (CEQA) from environmental review. NOW, THEREFORE, BE IT RESOLVED BY THE PLANNING COMMISSION OF THE CITY OF PALM DESERT, CALIFORNIA, AS FOLLOWS: 1. That the above recitations are true and correct and constitute the findings for approval of the Planning Commission in this case. 2. That the Planning Commission does hereby recommend approval to the City Council of ZOA 19-0004. PASSED, APPROVED, AND ADOPTED by the Planning Commission of the City of Palm Desert, California, at its regular meeting held on the 4"' day of February 2020, by the following vote,to wit: AYES: GREENWOOD, GREGORY, HOLT, and PRADETTO NOES: NONE ABSENT: DE LUNA ABSTAIN: NONE 1 LI SAY HOLT, C AIR ATTEST: "Uk RYAN STENDELL, SECRETARY PALM DESERT PLANNING COMMISSION 2 PLANNING COMMISSION RESOLUTION NO. 2772 EXHIBIT A 25.28.030 Housing Overlay District A. Intent. The intent of the overlay district is to incentivize the development of affordable housing units in the City of Palm Desert. B. Purpose and applicability. The purpose of the Housing Overlay District (HOD) is to provide o tional standards and incentives for the development of a wide variety of housing developments, which provide a minimum of 20% of all units dedicated as income-restricted. The overlay zone is generally applied to properties identified in the City's Housing Element and Housing Authority owned properties as shown in Figure 25.28-1. Wherever the HOD has been added to a base zone, the applicant may choose whether to use the optional HOD standards and/or the standards of the base zone. C. Uses permitted by approved precise plan and conditional use permit. Uses permitted or conditionally permitted in the R-2 and PR zoning districts may be approved through an Architectural Review application process. Housing types applicable to the HOD include, but are not limited to, single-family detached/attached, duplex units, and multi-family development, either for rent or for sale. D. Development standards. Development standards shall be flexible to ensure efficient site planning and neighborhood compatibility and to reflect the unique requirements of integrating income-restricted units into market-rate housing developments. Flexibility to the base zone development standards may be utilized as part of the design review of an Architectural Review application. Design guidance contained in Section 25.20 "Downtown District Design Guidelines," and within the University Neighborhood Specific Plan shall be followed. E. Affordable Housing Requirement. To be eligible for the provisions of this chapter, rental housing development within the HOD shall provide a minimum of twenty percent (20%) of all units within the project at income-restricted rents, or at least one (1) unit for smaller residential projects. All fractional units shall be rounded up to the next whole number. F. Density and intensity. Project densities are established in the Zoning Ordinance and on the Zoning Map. Any mixed-use and residential project under this Chapter is eligible for a density bonus as allowed under State law. Formulas for density bonuses are contained in Palm Desert Municipal Code Chapter 25.34.040. 1. Unit sizes. Minimum allowable unit sizes in square feet (sf) shall vary according to presence or absence of common project amenities. Each unit shall contain, as a minimum, a kitchen including two (2) burners, an oven, a refrigerator/freezer, a sink, counter space, and storage. 3 PLANNING COMMISSION RESOLUTION NO. 2772 G. Parking requirement. 1. Parking ratios based on bedroom count shall be calculated as follows: ' Table 25.28-1: Parking Required for Housing Overlay Bedroom Count Parking Ratio Studio/ 1 Bedroom 1.50 per unit 2— 3 Bedrooms 2.00 per unit H. Development Impact Fees: Any mixed-use or residential project eligible under the overlay district may be subject to a fee waiver of City fees for all income-restricted units including plan check and inspection fees. The remainder of the project may be eligible for a reduction in fees if funding sources are available with the City's Affordable Housing funds. 4 PLANNING COMMISSION RESOLUTION NO. 2773 A RESOLUTION BY THE PLANNING COMMISSION OF THE CITY OF PALM DESERT, CALIFORNIA, RECOMMENDING APPROVAL TO THE CITY COUNCIL OF A ZONING ORDINANCE AMENDMENT TO APPLY THE HOUSING OVERLAY DISTRICT TO HOUSING AUTHORITY PARCELS AND PARCELS IDENTIFIED IN THE CITY'S HOUSING ELEMENT (APNS: 623- 370-014, 627-120-013, 685-010-005, 694-120-028, 694-130-016, 694-130- 017, 694-190-087, 694-200-014, 694-200-024, 694-510-001, & 694-510-013) CASE NO: ZOA 19-0004 WHEREAS, the Planning Commission of the City of Palm Desert, California, did on the 41h day of February 2020, hold a duly noticed public hearing to consider the request by the City of Palm Desert for approval of the above-noted; and WHEREAS, the City Council, at their meeting of January 10, 2019, formed an "Affordable Housing Policy Subcommittee" and directed the subcommittee to explore affordable housing policy options; and WHEREAS, the subcommittee reviewed policy options and met with stakeholders, and recommended moving forward with a Zoning Ordinance Amendment to establish a "Housing Overlay District"to incentivize the development of new housing units at affordable rents; and WHEREAS, the subcommittee reviewed which properties to apply the Housing Overlay District recommended starting with Housing Authority parcels and those parcels identified in the City's Housing Element; and WHEREAS, the Planning Commission of the City of Palm Desert, in reviewing all the facts and any testimony given adopts the following as its Findings in recommended approval of the Zoning Ordinance Amendment to the City Council: SECTION 1. Findings. The Planning Commission of the City of Palm Desert hereby finds that: A. The City of Palm Desert (the "City"), California, is a municipal corporation, duly organized under the constitution, and laws of the State of California. B. The Planning and Zoning Law authorizes cities to establish by an ordinance the regulations for land use and development. SECTION 2. Amendment. The Planning Commission of the City of Palm Desert recommends that the City Council of the City of Palm Desert, California, approve and adopt the Zoning Ordinance Amendment creating the Housing Overlay District and applying the overlay to parcels as shown in Exhibit A which is attached hereto and incorporated herewith. SECTION 3. Severability. If any section, subsection, subdivision, paragraph, sentence, clause, or phrase in this ordinance or any part thereof is for any reason held to be unconstitutional or invalid or ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this ordinance or any PLANNING COMMISSION RESOLUTION NO. 2773 part thereof. The Planning Commission hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase thereof irrespective of the fact that one (1) or more subsections, subdivisions, paragraphs, sentences, clauses, or phrases be declared unconstitutional, invalid, or ineffective. SECTION 4. California Environmental Quality Act Finding. The Planning Commission of the City of Palm Desert finds the adoption of this ordinance to be categorically exempt from the requirements of the California Environmental Quality Act (CEQA) from environmental review. NOW, THEREFORE, BE IT RESOLVED BY THE PLANNING COMMISSION OF THE CITY OF PALM DESERT, CALIFORNIA, AS FOLLOWS: 1. That the above recitations are true and correct and constitute the findings for approval of the Planning Commission in this case. 2. That the Planning Commission does hereby recommend approval to the City Council of ZOA 19-0004. PASSED,APPROVED,AND ADOPTED by the Planning Commission of the City of Palm Desert, Calif omia, at its regular meeting held on the 41h day of February 2020, by the following vote, to wit: AYES: GREENWOOD, GREGORY, HOLT, and PRADETTO NOES: NONE ABSENT: DE LUNA ABSTAIN: NONE 1 i' LI DAY HOLT, CH ATTEST: IFZA� RYAN STENDELL, SECRETARY PALM DESERT PLANNING COMMISSION 2 PLANNING COMMISSION RESOLUTION NO. 2773 EXHIBIT A - Open Space Conventional Suburban Neighborhood Rural Neighborhood p Golf Course&Resort Neighborhood F, Small Town Neighborhood Town Center Neighborhood C - Employment s Industrial Public Facdaylinstitutional Resort&Entertainment - Regional Retail Suburban Retail Center > Neighborhood Center * Downtown � z c t i PALM DESERT b' GENERAL PLAN/ HOUSING ELEMENT r r � City of Palm Desert PLANNING COMMISSION RESOLUTION NO. 2773 Case No. ZOA 19-0004 Date: 24 2C2v 3 PRELIMINARY MINUTES PALM DESERT PLANNING COMMISSION FEBRUARY 4, 2020 assist with Section 8. Additionally, staff addressed the concerti with ADUs and JADUs in the HPR (Hillside Planned Residential) zone. Commissioner Pradetto asked if staff had any other concerns related to the ordinance. Mr. Melloni replied no. Commissioner Pradetto believed that in terms of loopholes, the governor is saying the City's loopholes are his solution. He said from the State's perspective, they are not loopholes it is their intent. Looking at the ordinance as a whole, he liked the architectural requirements and dealing with health and safety. He believed there would be some adjusting throughout the State; however, Palm Desert may not need to rush to build ADUs/JADUs like in other areas. He commented that Palm Desert could learn from other cities' mistakes over time. Chair Holt declared the public hearing open and invited public testimony FAVORING or OPPOSING this matter. With further testimony offered, Chair Holt declared the public hearing closed. Vice-Chair Greenwood stated that Commissioner Pradetto's comments were accurate. Vice-Chair Greenwood moved to waive further reading and adopt Planning Commission Resolution No. 2771, recommending approval of Case No, ZOA 20-0004 to the City Council. The motion was seconded by Commissioner Pradetto and carried by a 4-0 vote (AYES: Greenwood, Gregory, Holt, and Pradetto; NOES: None; ABSENT: DeLuna). B. REQUEST FOR CONSIDERATION to adopt resolutions recommending approval to the City Council to amend the Palm Desert Municipal Code and replace Section 25.28.030 "Medium/High-Density Housing Overlay District" in its entirety with a new "Housing Overlay District," and apply said overlay district to parcels identified in the City's Housing Element and parcels owned by the Housing Authority. Case No. ZOA 19-0004 (City of Palm Desert, Applicant). Principal Planner Eric Ceja outlined the salient points of the staff report and recommended approval to the City Council. He offered to answer any questions. Commissioner Gregory commented that in the past couple of years, staff presented housing projects to the Planning Commission. He asked if a project like The Sands would be more likely to move forward with the Housing Overlay District (HOD). Mr. Ceja responded that The Sands is not a good example. He said that The Sands property has an affordable housing component for the past 30 years. He pointed out that a better example is Parcel G. It is a project that the Planning Commission has recommended approval to the City Council; however, City staff were not able to take it to the Council because staff is still negotiating the affordable housing component for that site. If the City Council approves the ZOA, he stated the City would apply the HOD to Parcel G. 6 PRELIMINARY MINUTES PALM DESERT PLANNING COMMISSION FEBRUARY 4, 2020 Mr. Stendell added that this request came from a Councilmember. The Councilmember felt that the City was being consistent in being inconsistent with negotiating affordable units. Therefore, the intent was to create something that would be fair, have an incentive base, and help speed up the development of affordable units. Vice-Chair Greenwood inquired if there is any support frorn utility companies to assist with fees to develop a low-income housing project. Mr. Ceja replied no. However, utility companies have other programs in place, For example, Southern California Edison can cap utility rates or help with utility improvements on properties. He stated that school districts do not waive fees for affordable housing projects. He mentioned that the highest fee developers have to pay in the Coachella Valley is the Transportation Uniform Mitigation Fee, which the Coachella Valley Association of Governments (CVAG) established and manages. CVAG created an exception for affordable housing projects. Mr. Stendell mentioned that the Housing Division was incorporated into the Community Development Department in July 2019, and introduced Senior Management Analyst Jessica Gonzales. For new construction, Ms. Gonzales noted that utility companies are establishing new programs that would facilitate some options for affordable housing projects. Chair Holt declared the public hearing open and invited public testimony FAVORING or OPPOSING this matter. With no testimony offered, Chair Holt declared the public hearing closed. Commissioner Gregory moved to waive further reading and adopt Planning Commission Resolution Nos. 2772 and 2773, recommending approval of Case No. ZOA 19- 0004 to the City Council, The motion was seconded by Commissioner Pradetto and carried by a 4-0 vote (AYES: Greenwood, Gregory, Holt, and Pradetto; NOES: None; ABSENT: DeLuna), XL MISCELLANEOUS None XII. COMMITTEE MEETING UPDATES A. ART IN PUBLIC PLACES None B. PARKS & RECREATION Vice-Chair Greenwood reported that there was an election of officers, and the Commission discussed a community service award program. 7 ' ADJOURNED MINUTES PALM DESERT HOUSING COMMISSION JA0UARY@ 2020 V. NEW BUSINESS A. REQUEST FOR CONSIDERATION of recommendation to the Housing Authority Board and City uuurm/ to approve the Housing Overlay District for the establishment Of an affordable housing incentive policy \Ub8presented at 8fUture nl88b0g. Senior Management Analyst, Jessica Gonzales provided a brief summary of the request before the Commission and introduced Principal Planner, Eric C ja for the preG80t8bOD of the Housing Overlay District. M[. Cg(8 provided 3 short introduction Of hirn3e|[ He then provided R summary of the background tothe Housing C)Vaday District, stating last year City Council appointed 8 SUbCOrD[Dittg8 including Mrs. Gonzales, himself and council members, Jan Hannikand Kathleen K8UV. to 9Xp|Oo3 8ffOnj8b}8 housing policies for the City of P8|nn Desert. After reviewing 8 range ,of different policies, the GVbCO[nrnitte8 is recommending B zoning ordinance amendment which establishes a Housing Overlay District. M[ C jG explained the Housing Benl8Ot Plan SUbrDi1t8d to the State contains requirements that the City is mandated to perform, specifically the RggiOO8| Housing Needs Assessment (RHNA) which requires the City to plan for a number of housing units tobebuilt during 8O eight year cycle, with the upcoming cycle\o begin 2U21. The City has had many proposals come forward for residential developments which has led to staff being tasked with looking at ways to achieve additional RffoKjah(O housing for each of these developments. P[8vi0US negotiations with developers have been individualized resulting in a variety of different incentives being provided and applied toeach project. City (�0unCil requested staff research the possibility of devising ast8nd4nd pOUC ' for incentives offered to interested developers, instead of individualized negotiations of incentives for each project. Mr. C j@fUrthS[stfted Mrs. Gonzales and he reviewed the <]itv`S goals and policies in the General P13D, Strategic Plan, and the Housing E|erD9Ot to S88 what policies are established at the city level that are similar which specifically address affordable housing. They also looked at a metric of how best to view housing as a whole for the City. Their research found a jobs housing balance of one and m half jobs for every household was promoted by both the American Planning Association and the Building Industry Association. They also reviewed RHNA. The State has determined 1.3 million homes will need to be built in Southern California over the next eight year cycle which begins in 2021, An estimated 2.700 of those homes are to be built in the City of Palm Desert. The proposed affordable housing Units will vary from very low income to above moderate income. Director of Community O8vG|0pnngnt' Ryan St8nde||. Cornnn8O1ed in the last five years the City has built less than 100 units per year, so this metric is very ambitious. Reviewing the RHNA Cycles, in 1998 the City met its overall goal for total number of units required. HOvv8vBr. in 2007' recession hit and the State eliminated Redevelopment /\geOCiSS which significantly Cut into the City'S ability to develop housing. The City was ultimately unable to meet RHNA'Sgoa| number. With the end Of the current F{HNACVC|e, 2O14 through 2O21, the City was able tO meet the required production numbers based On private market development and Housing Authority projects that have been completed, 2 ADJOURNED MINUTES PALM DESERT HOUSING COMMISSION JANUARY 8, 2020 specifically, the Carlos Ortega Villas. Mrs. Gonzales noted these numbers also include projects that have been approved, but are not yet constructed. Mr. Ceja stated Mrs. Gonzales and he used the metric of one and a half jobs for everyone household promoted by the American Planning Association and the Building Industry Association to see how the City of Palm Desert compares to this standard. A review of Palm Desert's portfolio reveals approximately 1,700 units built which are currently in operation with 245 committed units in the very low income category. Upon inquiry as to whether these are rental properties or owner occupied, Mrs. Gonzales explained there are four different housing categories. The first being the fifteen Housing Authority communities, the second category are 350 developer provided units which are through a housing agreement utilizing a density bonus, the third category are owner occupied, which are single family homes offered at the Falcon Crest and Desert Rose communities as well as inf ill homes built through self-help and Habitat for Humanity of the Coachella Valley. The fourth category, Entitles, is a combination of all categories. Of the approximately 1,700 units, 725 are dedicated to very low income households, 719 to low income, and 308 for moderate income households. Seniors occupy just over 700 of the units and nearly 500 units are occupied by households with children under the age of 21. Additionally, almost half of the total units are maintained by a female head of household. Mr. Ceja reported Mrs. Gonzales and he conducted thorough research and review of the other cities valley-wide to see how Palm Desert compares. Results for Palm Desert indicated there are approximately 2 people per household with 1.14 jobs available per household. While not quite at the 1.5 ratio that is advocated for, Palm Desert is doing better than most cities in the Coachella Valley. Councilmember Kelly, commented the large number of retirees in the Coachella Valley influences the overall numbers. There is an expectation of fewer jobs per household as a consequence of the retiree population occupying so many homes. Discussions amongst the subcommittee members have observed that Palm Desert is the employment center of the Coachella Valley therefore, efforts should be made to ensure there is sufficient housing to support the employees in Palm Desert. Mr. Ceja reported approximately 4.5% of Palm Deserts housing stock is dedicated to affordable housing. Mrs. Gonzales and he did extensive research to determine what other affordable housing policy options are available around the state. There have been a number of changes at the State level in the last two years including 18 new housing laws passed in 2018 and 19 new housing laws passed in 2019. These new laws include items which would streamline the process for development. Permits will still be required for projects such as building an accessory dwelling unit or a new addition to a home, however, the City would be limited with its ability to deny the development of these types of structures. Additionally, there are new California Environmental Quality Act(CEQA)clearances and guidelines related to housing that have been implemented to assist with expediting the development of housing with the State. Their research also revealed many cities were creating an affordable housing overlay district, which is the policy before the commission. Other cities fee schedules were also 3 ADJOURNED MINUTES PALM DESERT HOUSING COMMISSION JANUARY 8, 2020 reviewed. Staff had considered the possibility of a no net fee, which would allow fees to essentially stay the same, however, a portion would be allocated to affordable housing. At the policy committee level it was not recommended to move forward with this alternative, though, this is still an option which may be considered in the future. There has also been discussion regarding the need to identify Housing Authority properties and taking a more assertive approach to market these properties for development. With the release of the new RHNA numbers staff will need to be strategic with how these properties are released and developed. In larger cities, an inclusionary housing ordinance has been implemented which requires developers to set aside a portion of that development for affordable housing.This policy has received mixed reviews and is not currently in practice within the Coachella Valley, therefore, it is not an option being entertained at this time. Mr. Ceja referenced the current Housing Overlay District policy before the commission, stating its intent is to incentivize affordable housing units. This policy would be voluntary and would be applied to properties that have been identified in the City's housing element as well as Housing Authority properties. This is an optional standard, should a developer choose to allocate 20% of the units within their housing project as income restricted units, they are eligible for the incentives offered in the policy. Commission Buller inquired as to the origin of the incentives being proposed in the policy, did staff receive feedback or input from the development community or are they from other city policies. In reply, Mr. Ceja stated initially, City staff met exhaustively with the Building Industry Association, Desert Valley Builders Association, Coachella Valley Housing Coalition and other affordable housing developers to get a better understanding of what impedes their ability to develop affordable housing. What staff learned was that requiring certain items can make it difficult for developers to finance their projects, however, they approved of an option to have incentive standards available to them. Additionally, staff reviewed other cities who had overlay district policies, finding the majority offered development standard flexibility, some type of expedited process through the City, and a density bonus. Staff is hoping there are enough incentives within this policy to entice developers to provide affordable housing units as part of their project. Chair Mireles observed the identified properties for the overlay district are all north of Fred Waring and asked if there was a reason for this. Mr. Ceja replied the identified properties are already part of the established housing element and others are already owned by the Housing Authority,making these ideal areas to slowly start the implementation of this policy. He noted this policy could be applied to additional areas in the future. Councilmember Kelly added the City is trying to avoid over populating areas and drastically altering the character of established neighborhoods without community input and public hearing. These properties have already been identified as very suitable for this kind of development. 4 ADJOURNED MINUTES PALM DESERT HOUSING COMMISSION JANUARY 8, 2020 Vice Chair Ballard asserted the issue seems to be the percentage of loss to property values. In reply, Councilmember Kelly stated the issue is lifestyle as well as property value, adding many people have moved to the area because they want to escape urban density. Vice Chair Ballard commented there are a number of different things that will rely on the success of this program. He noted they will need to adapt new standards of appraisal for example, adding he can see many positive and negative aspects to this program. He stated one of the issues his client has come up against is the community's unwillingness to have affordable housing in their area. Vice Chair Ballard expressed it will be a challenge to present this program in a positive light, and felt it should be taken to the real estate community to see how this will affect them. He stated he feels the overlay is a great idea and agrees with the recommended policy. Director of Community Development Ryan Stendell agreed that the implementation of this policy will not be easy, however, it is a good start toward the future of affordable housing. Vice Chair Ballard inquired about the possibility of approaching the Marriott, adding they have the land and the means to build. Councilmember Kelly asserted affordable housing requires extensive expertise because the funding sources are varied and complex, it is a specialty. There are entities with this specialty in the Coachella Valley, and many more resources outside of our area which we may be able to entice to the City. It would be difficult to convince entities that do not already possess an expert on staff to take this opportunity. It would a greater prospect for success to identify and entice entities that are already involved in the affordable housing industry within the surrounding vicinity. Mrs. Gonzales explained this policy is intended for communities being developed that would not have 100 percent affordability provided as part of that community. This policy is meant to encourage private developers, who did not plan otherwise, to include 20% of their units as affordable housing, so they can take advantage of the incentives which come along with this inclusion. Chair Mireles expressed concerned regarding the designated areas being concentration in one area adding he would like to see it spread more throughout the City. Councilmember Kelly commented that our current affordable housing communities are located throughout the City. The area designated in the overlay district are where the City has the most vacant land available for development. This proposed area currently has housing communities like Genesis, already developed and the allocated areas for affordable housing are approximately 25% of the overlay district, so a noticeable concentration of these developments are avoided. Mrs. Gonzales reiterated that the developments would not be one hundred percent affordable, it would be 20% of the units in any given development which would prevent a concentration of affordable households. Additionally, since these areas are vacant land they provide the best opportunity for developers to take advantage of the density bonus 5 ADJOURNED MINUTES PALM DESERT HOUSING COMMISSION JANUARY 8, 2020 and other offered incentives, which in turn allows the City to yield a greater number of affordable units. Commissioner Buller observed some of the incentives and strategies mentioned in the housing overlay district were items that were negotiated with the developer for the Sands project. In reply, Mr. Ceja stated this was correct, adding the State already allows a density bonus and notes the number of concessions a City should offer. The overlay district policy uses some of those density provisions and further defines the incentives which would be available as a standard to any developer who chooses it as an option. Upon inquiry by Commission Buller, Mr. Stendell stated the map provided is part of the General Plan adding the designated overlay district areas are zoned as planned residential. Chair Mireles commended the City for being aggressive about addressing the issue of affordable housing. Upon a motion by Vice-Chair Ballard, second by Commissioner Guinaw, and a 6-0 vote of the Housing Commission the Request for Consideration to recommend approval of the Housing Overlay District was approved as presented (AYES: Ault, Buller, Ballard Guinaw, Mireles, and Morrison; NOES: None; ABSENT: None). VI. CONTINUED BUSINESS None Vil. OLD BUSINESS None VIII. REPORTS AND COMMENTS A. Commission Members Remarks and Requests Mrs. Gonzales introduced staff member, Chris Gerry, commenting she invited him to the meeting so that he can provide more detailed information on the City's efforts to help the homeless in our community. Management Analyst, Chris Gerry, gave a brief introduction of himself. Mr. Gerry informed the City has a local homeless outreach program which includes two Riverside County workers dedicated to the City of Palm Desert. These county staff workers are contracted through Riverside University Health Systems, which is part of their mental health department. They work in our community essentially full time and drive throughout the community in a County vehicle looking for individuals who are homeless. Mr. Gerry stated those in homeless advocacy have found that continual relationship building with homeless individuals builds trust which allows the workers to help them with their current situation and the eventual goal of participation in the Housing First model program. Initial contact by the workers with the homeless in the 6 NOTICE OF EXEMPTION TO: FROM:City of Palm Desert ❑ Office of Planning and Research 73-510 Fred Waring Drive Palm P.O.Box 3044,Room 113 Desert,CA 92260 Sacramento,CA 95812-3044 ® Clerk of the Board of Supervisors 2724 Gateway Dr,Riverside, or CA 92507 County Clerk County of.- Riverside I. Project Titles j Zoning Ordinance Amendment to establish a"Housing Overlay District"and apply said overlay district to Housing Authority properties and properties identified in the City's Housing Element. 2. Project Applicant: City of Palm Desert 3. Project Location—Identify street address and Citywide Zoning Ordinance Amendment applied to: cross streets or attach a map showing project site APNs:623-370-014,627-120-013,685-010-005,694-120- (preferably a USGS 15'or 7 1/2'topographical 028,694-130-016,694-130-017,694-190-087,694-2(x)- map identified by quadrangle name): 014,694-200-024,694-510-001,&694-510-013 4. (a)Project Location—City: Palm Desert (h) Project Location—County:Riverside 5. Description of nature,purpose,and beneficiaries 4 The City of Palm Desert wishes to establish an overlay of Project: district to intent the construction of affordable housing fi units throughout the City. 6. Name of Public Agency approving project. � City of Palm Desert — - 7. Name of Person or Agency undertaking the City of Palm Desert project,including any person undertaking an activity that receives financial assistance from the Public Agency as part of the activity or the person I receiving a lease,permit,license,certificate,or other entitlement of use from the Public Agency j as part of the activity: i 8. Exempt status; (check one) ! (a) ❑ Ministerial project. (Pub.Res.Code§21080(b)(1);State CEQA Guidelines§ 15268) (b) ❑ Not a project. (c) ❑ Emergency Project. (Pub.Res.Code§21080(b)(4);State CEQA Guidelines 15269(b),(c)) (d) ® Categorical Exemption. CEQA Guidelines Section 15061(b)(3)that CEQA only State type and section number: applies to projects that have the potential for causing a significant effect on the environment. i (e) ❑ Declared Emergency. (Pub.Res.Code§21080(b)(3);State CEQA Guidelines§ 15269(a)) ! W ❑ Statutory Exemption. i State Code section number: I (g) ❑ Other. Explanation: 9. Reason why project was exempt: Project is consistent with the City's general plan and the overlay district will not have an immediate or negative Notice of Exemption FORM -13- — — effect on the environment.Individual development proposals that utilize the overlay district will be evaluated separately in accordance with CEQA guidelines. 10. Lead Agency Contact Person: 1 Eric Ceja,Principal Planner — Telephone: — — — —. — — — (760)346-0611 •—• -- •— — — — — -- — 11. If tiled by applicant:Attach Preliminary Exemption Assessment(Form"A")before filing. 12. Has a Notice of Exemption been filed by the public agency approving the project? Yes ® No❑ 13. Was a public hearing held by the lead agency to consider the exemption? Yes® No❑ If ycs,the date of the public hearing was:July 12,2018 Signature: Date: Title: ® Signed by Lead Agency ❑Signed by Applicant Date Received for Filing: (Clerk Stamp Here) Authority cited: Sections 21083 and 21100,Public Resources Code. Reference:Sections 21108,21152,and 21152.1,Public Resources Code. Notice of Exemption FORM"B" 73-510 FRID W.ARING DRIVE N t.,o DLSERT,CALIFORNIA 92260-2578 TEL:76o 346—o6n FAX:760 341-7098 into(palm-deaerc.org CITY OF PALM DESERT LEGAL NOTICE CASE NO.ZOA 19-0004 NOTICE OF INTENT OF THE PALM DESERT PLANNING COMMISSION TO APPROVE A RESOLUTION RECOMMENDING APPROVAL TO THE CITY COUNCIL OF A ZONING ORDINANCE AMENDMENT TO ESTABLISH A HOUSING OVERLAY DISTRICT AND TO APPLY THE OVERLAY DISTRICT TO HOUSING AUTHORITY PROPERTIES AND PROPERTIES IDENTIFIED IN THE CITY'S HOUSING ELEMENT; AND ADOPT A NOTICE OF EXEMPTION UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT The City of Palm Desert (City), in its capacity as the Lead Agency under the California Environmental Quality Act (CEQA), has determined that this Zoning Ordinance Amendment (ZOA) is exempt from CEQA review pursuant to Section 15060(c)2 in that the proposed action will not result in a direct or reasonably foreseeable indirect physical change in the environment, and Section 15061(b)3 in that the ZOA to establish the overlay zone will not result in a direct impact to the built environment,and that specific projects within the overlay zone will be evaluated in accordance with CEQA when a development application is filled. Therefore, the Director of Community Development is recommending that the Planning Commission adopt a Notice of Exemption under the CEQA guidelines. Project Location:The Housing Overlay District(HOD)is intended to be applied to the following parcels as identified by Assessor Parcel Numbers: 622-370-014, 627-122-013, 685-010-005, 694-120-028, 694-130-017, 694-130-021, 694-190-087, 694-200-014, 694-200-024, 694-310- 006, 694-510-001, and 694-510-013. Code Amendment Description: The HOD is intended to incentivize the development of affordable housing units in the City by providing optional development incentives. By opting to utilize the HOD, property owners agree to provide 20%of all housing units at affordable rents. In doing so,the property owner is eligible for flexible development standards, density bonuses in accordance with State law, reduced parking ratios, expedited application processing, and potential waiver of certain development impact fees. Recommendation: Staff is recommending that the Planning Commission adopt a resolution supporting the changes to the Zoning Ordinance,and allow the item to move forward to a public hearing with the City Council. Public Hearing:The public hearing will be held before the Planning Commission on February 4, 2020,at 6:00 pm. Comment Period: Based on the time limits defined by CEQA, your response should be sent at the earliest possible date. The public comment period for this project is from January 25, 2020, to February 4, 2020. Public Review:The ZOA is available for public review Monday through Friday from 8:00 a.m.to 5:00 p.m.at City Hall. Please submit written comments to the Planning Department. If any group challenges the action in court,the issues raised may be limited to only those issues raised at the public hearing described in this notice or in written correspondence at, or prior to the Planning Commission hearing.All comments and any questions should be directed to: Eric Ceja, Principal Planner City of Palm Desert 73-510 Fred Waring Drive Palm Desert,CA 92260 (760)346-0611, Extension 384 eceja@cityofpalmdesert.org PUBLISH: DESERT SUN RYAN STENDELL,Secretary JANUARY 25,2020 Palm Desert Planning Commission I Y 9L I I M 0 1 55 73-5 i o FRED WARING DRIVE PALM DESERT, CALIFORNIA 92260-2578 TEL: 760 346—o6ii FAx: 760 341-7098 info@palm-desert.org CITY OF PALM DESERT LEGAL NOTICE CASE NO. ZOA 19-0004 NOTICE OF INTENT OF THE PALM DESERT PLANNING COMMISSION TO APPROVE A RESOLUTION RECOMMENDING APPROVAL TO THE CITY COUNCIL OF A ZONING ORDINANCE AMENDMENT TO ESTABLISH A HOUSING OVERLAY DISTRICT AND TO APPLY THE OVERLAY DISTRICT TO HOUSING AUTHORITY PROPERTIES AND PROPERTIES IDENTIFIED IN THE CITY'S HOUSING ELEMENT: AND ADOPT A NOTICE OF EXEMPTION UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT The City of Palm Desert (City), in its capacity as the Lead Agency under the California Environmental Quality Act (CEQA), has determined that this Zoning Ordinance Amendment (ZOA),is exempt from CEQA review pursuant to Section 15060(c)2 in that the proposed action will not result in;a direct or reasonably foreseeable indirect physical change in the environment, and Section 1506,1(b)3 in that the ZOA to establish the overlay zone will not result in a direct impact to the built.environment, and that specific projects within the overlay zone will be evaluated in accordance with CEQA when a development application is filled. Therefore, the Director of Community Development is recommending that the Planning Commission adopt a Notice of Exemption under the CEQA guidelines. Project Location: The Housing Overlay District (HOD) is intended to be applied to the following parcels as identified by Assessor Parcel Numbers: 622-370-014, 627-122-013, 685-010-005, 694-120-028, 694-130-017, 694-130-021, 694-190-087, 694-200-014, 694-200-024, 694-310- 006, 694-510-001, and 694-510-013. Code Amendment Description: The HOD is intended to incentivize the development of affordable housing units in the City by providing optional development incentives. By opting to utilize the HOD, property owners agree to provide 20% of all housing units at affordable rents. In doing so, the property owner is eligible for flexible development standards, density bonuses in accordance with State law, reduced parking ratios, expedited application processing, and potential waiver of certain development impact fees. Recommendation: Staff is recommending that the Planning Commission adopt a resolution supporting the changes to the Zoning Ordinance, and allow the item to move forward to a public hearing with the City Council. Public Hearing: The public hearing will be held before the Planning Commission on February 4, 2020, at 6:00 pm. Comment Period: Based on the time limits defined by CEQA, your response should be sent at the earliest possible date. The public comment period for this project is from January 25, 2020, to February 4, 2020. Public Review: The ZOA is available for public review Monday,through Friday from 8:00 a.m. to 5:00 p.m. at City Hall. Please submit written comments to the Planning Department. If any group challenges the action in court, the issues raised may be limited to only those issues raised at the public hearing described in this notice or in written correspondence at, or prior to the Planning Commission hearing. All comments and any questions should be directed to: Eric Ceja, Principal Planner City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 NEOPOST FIRST-CLASS MAIL 01/23/2020 73-510 FRED WARING DRIVE,PALM DESERT,CALIFORNIA 92260 +r ZIP 92260 04'IM11276210 Ponderosa Homes II 6130 Stoneridge Mall Road NIXIE 957 FE i RETURN TO SENDER g' N-0T .iS=.i 3 VR R A.R I, i- AS Anr)R SC'F n UNABLE TO FORWARD i I PLANNING-EC 9400922472032250 ;�y� UT_F BC: 92260252410 *2704-00729-23-41 ZOA 1 9-0004 ��E�Z 63>2 i + It r. ,i �,. V F .� w,.ti, Ri! 221 t �)' �!f � ,fF ,�.. +�%e� CEIVE fREERK S ��:F►GE 1.�1 , C` j r ' PO oox�3430 °E media �O� Green Bay,WI 54305-3430 g p Tel:760-778-45781 Fax 760-778-4731 7 ?O PART OF THE USATODAY NETWORK Email:legals@thedesertsun.com PROOF OF PUBLICATION STATE OF CALIFORNIA SS. COUNTY OF RIVERSIDE CITY OF PALM DESERT LEGAL NOTICE CASE NO.ZOA 19-0004 CITY OF PALM DESERT NOTICE OF INTENT OF THE PALM DESERT CITY COUNCIL TO CONSIDER APPRO- VAL OF A ZONING ORDINANCE AMENDMENT TO ESTABLISH A HOUSING OVER- 73510 FRED WARING DR LAY DISTRICT AND TO APPLY SAID OVERLAY DISTRICT TO HOUSING AUTHORI- TY PROPERTIES AND PROPERTIES IDENTIFIED IN THE CFTY'S HOUSING ELEMENT; AND ADOPT A NOTICE OF EXEMPTION UNDER THE CALIFORNIA ENVIRONMEN- PALM DESERT CA 92260 TAL QUALITY ACT The City of Palm Desert(City), in its capacity as the Lead Agency under the California Environmental Quality Act(CEQA),has determined that this Zoning Ordinance Amendment(ZOA)is exempt from CEQA review pursuant to Section 15060(c)2 in that the proposed action will not result in a direct or reasonab foreseeable indirect ph sisal change in the environment,and Section 15061(b) in that the ZOA to establish the overlay zone will not result in a direct impact to I am over the age of 18 years old a citizen of the the built environment,and that specific projects within the overlay zone will be evaluated in accordance with CEQA when a development application is filed. Therefore, the Director of Community Development is recommending that the United States and not a party to,or have interest in City Council adopt a Notice of Exemption under the CEQA guidelines. this matter. I hereby certify that the attached Project Location:The Housing Overlay District(HOD)is intended to be applied to the following parcels as identified by Assessor Parcel Numbers:622-370-014, 627-122-013,685-010-005,694-120-028,694-130-017,694-130-021,694-190-087, advertisement appeared in said newspaper(set in 694-200-014,694-200-024,694-310-006,694-510 001,and 694-510-013. type not smaller than non pariel)in each and entire Code Amendment Description: The HOD ,.r ,u....+,u., r.,....,.... issue of said newspaper and not in any supplement units in tt CITY OF PALM DESERT lize the H LEGAL NOTICE thereof on the following dates,to wit: fordable CASE NO,ZOA 19 0004 ment star ratios,ex NOTICE OF INTENT OF THE PALM DESERT CITY COUNCIL TO CONSIDER APPRO- opment i VAL OF A ZONING ORDINANCE AMENDMENT TO ESTABLISH A HOUSING OVER- LAY DISTRICT AND TO APPLY SAID OVERLAY DISTRICT TO HOUSING AUTHORI- 02/15/20 Recommi TY PROPERTIES AND PROPERTIES IDENTIFIED IN THE CITY'S HOUSING ELEMENT, ces supPt AND ADOPT A NOTICE OF EXEMPTION UNDER THE CALIFORNIA ENVIRONMEN- district tc TAL QUALITY ACT Planning The City of Palm Desert (City), in its capacity as the Lead Agency under the I acknowledge that 1 am a principal clerk of the of PalmSider the California Environmental Quality Act(CEQA), has determined that this Zoning side(Co Ordinance Amendment(ZOA)is exempt from CEQA review pursuant to Section printer of The Desert Sun,printed and published 4-0(Com 15060(c)2 in that the proposed action will riot result in a direct or reasonably P P P foreseeable indirect physical change in the environment,and Section 15061(b)3 properti in that the ZOA to establish the overlay zone will not result in a direct impact to weekly in the City of Palm Springs,County Of Public H, the built environment,and that specific projects within the overlay zone will be ruary 27, evaluated in accordance with CEQA when a development application is filed. Riverside, State of California.The Desert Sun was Therefore,the Director of Community Development is recommending that the Commer City Council adopt a Notice of Exemption under the CEQA guidelines. adjudicated a Newspaper of general circulation on should b project i! Project Location:The Housing Overlay District(HOD)is intended to be applied to the following parcels as identified by Assessor Parcel Numbers:622-370-014, March 24, 1988 by the Superior Court of the Public R- 627-122-013,685-010-005,694-120-028, 694-130-017,694-130-021,694-190-087, from 8:0 694-200-014,694-200-024,694-310-006,694-510-001,and 694-510-013. County of Riverside,State of California Case No. Planning raised in Code Amendment Description: 191236. in this n' ing.All c The HOD is intended to incentivize the development of affordable housing Eric Ce a, units in the City by providing optional development incentives.By opting to uticity - I lize the HOD,property owners agree to provide 20%of all housing units at af- 73- of F, fordable rents.In doing so,the property owner is eligible for flexible develop- 73-510 Fi Trent standards,density bonuses in accordance with State law,reduced parking 1 certify under penalty of perjury,under the laws of Palm Des ratios,expedited application processing. and'otential waiver of certain devel- the State of California,that the foregoing is true and eceejja@cif opment impact feesp p g. p RACHELL Recommendation: Staff is recommending that the City Council adopt ordinan- correct.. Executed on this 17th of February 2020 PALM DE ces supporting the chances to the Zoning Ordinance and applying the overlay district to certain properties identified in the City's Housing Element. in Green Bay,Wl,Count of Brown. y. y Planning Commission Recommendation: The Planning Commission of the City of Palm Desert held a duly noticed public hearing on February 4,2020,to con- sider the ZOA for the establishment of a HOD.The Planning Commission voted 4-0(Commissioner De Luna ABSENT)to adopt Resolutions Nos.2772 and 2773, recommending that the City Council adopt the ZOA and apply it to certain properties within the City of Palm Desert. Public Hearing:The public hearing will be held before the City Council on Feb- ruary ruary 27,2020,at 4:00 pm. Comment Period: Based on the time limits defined by CEQA, your response should be sent at the earliest possible date.The public comment period for this project is from February 15,2020,to February 27,2020. DECLARANT Public Review:The ZOA is available for public review Monday through Friday from 8:00 a.m.to 5:00 p.m.at City Hall.Please submit written comments to the Planning Department. If any group challenges the action in court, the issues raised may,be limited to only those issues raised at the public hearing described in this notice or in written correspondence at,or prior to the City Council hear- Ad#:0004057529 ing.All comments and any questions should be directed to: P O: Eric Ceja,Principal Planner City of Palm Desert This is not an invoice 73-510FredWarin 73-510 Fred Waring Drive #of Affidavits: 1 Palm Desert,CA 92260 (760)346-0611,Extension 384 eceja®cityofpa I mdesert.org RACHELLE D.KLASSEN,CITY CLERK PALM DESERT CITY COUNCIL Published:2/15/2020 Palm Desert-Owner Project Name Address No.of Units Income Category Unit Types Owner Portola Palms Mobile Home Park 43155 Portola Avenue 7 VL/Low Mobile Homes Private Building Horizon In-fill various locations 2 VL/Low SFH Private FTHP In-fill various locations 2 VL/Low SFH Private Rehab Program In-fill various locations 2 VL/Low SFH Private NSP In-fill various locations 2 VL/Low SFH Private Self-Help In-fill various locations 11 VL/Low SFH Private Habitat for Humanity In-fill various locations 11 Very Low SFH Private Falcon Crest off 42nd Avenue 93 VL/Low/Mod SFH Private Desert Rose off Fred Waring Drive 161 VL/Low/Mod SFH Private Total 291 Sub Types Total by Unit Type %of Total SFH 284 97.6% 1754 Mobile Homes 7 2.4% 403 Very Low 11 3.8% VL/Low 26 8.9% VL/Low/Mod 254 87.3% Palm Desert-Not Built-Entitled Project Name Address No.of Units Income Category Unit Types Owner PPMHP 43155 Portola Avenue 2 VL/Low Mobile Home Private Sagecrest Apt. 73775 Santa Rosa Way 14 VL/Low Rental-Multi Family Private Ponderosa Cortesia Way 14 Moderate Rental-Multi Family Private Palm Desert 103 76000 Frank Sinatra Drive 21 Moderate Rental-Multi Family Private Arc Village 73255 Country Club Drive 36 VL/Low Rental-Multi Family PDHA-Privately Operated Millenium Technology Drive 66 VL/Low Rental-Multi Family Private The Sands 74-401 Hovley Lane East 78 Very Low Rental-Multi Family Private Self-Help 42nd Avenue 14 VL/Low SFH Private Total 245 Sub Types Total by Unit Type %of Total Rental-Multi.Family 229 93.5% Rental-Senior 0 0.0% Mobile Home 2 0.8% SFH 14 5.7% Very Low 78 31.8% VL/Low 132 53.9% Moderate 35 14.3% 1 TOTAL 1754 MONTHLY OCCUPANCY AND AVERAGE RENT SUMMARY SHEET Multi-Family Complexes o, of Units Average Mo. Rent x reme y Low 0-30% 173 253 Very ow - - _ 31-50% 247 461 51-80% 215 727 Moderate 81%-120% 68 1,025 Total 703 616 Senior Complexes No. of Units Average Mo. Rent Extremely ow 117 235 0-30% Very Low 165 425 31-50% Low- - _ - --- - -- ----- -- - 51-80% 83 698 Moderate 11 956 81%-120% Total j 376 579 HOUSEHOLD SIZE AMI % 1 2 3 4 Ann. Income Mo. Rent Ann. Income Mo. Rent Ann. Income Mo. Rent Ann. Income Mo. Rent 20% 9,760 203 11,150 232 12,550 261 13,940 290 25% 12,200 254 13,938 290 15,688 327 17,425 363 30% 15,100 315 17,250 359 21,330 444 25,750 536 35% 17,080 356 19,513 407 21,963 458 w�;0.5 8 Is..,wj 40% 19,520 407 22,300 465 25,100 523 27,880 581 45% 21,960 458 25,088 523 28,238 588 31,365 653 50% 25,150 524 28,750 599 32,350 674 35,900 748 55% 26,840 559 30,663 639 34,513 719 38,335 799 60% 29,280 610 33,450 697 37,650 784 41,820 871 65% 31,720 661 36,238 755 40,788 850 45,305 944 70% 34,160 854 39,025 976 43,925 1,098 48,790 1,220 75% 36,600 915 41,813 1,045 47,063 1,177 52,275 1,307 80% 40,250 1,006 46,000 1,150 51,750 1,294 57,450 1,436 85% 41,480 1,037 47,388 1,185 53,338 1,333 59,245 1,481 90% 43,920 1,098 50,175 1,254 56,475 1,412 62,730 1,568 95% 46,360 1,159 52,963 1,324 59,613 1,490 66,215 1,655 100% 48,800 1,220 55,750 1,394 62,750 1,569 69,7001 1,743 105% 51,240 1,281 58,538 1,463 65,888 1,647 73,185 1,830 110% 53,680 1,342 61,325 1,533 69,025 1,726 76,670 1,917 115% 56,120 1,403 64,113 1,603 72,163 1,804 80,155 2,004 120% 58,550 1,464 66,900 1,673 75,300 1,883 83,650 2,091 Riverside County Income Eligibility as of 711119. Monthly rent is exclusive of Utility Allowance. 01/02/2020 Page 5 of 11 Summary Rpt#1 OFFICIAL INCOME LIMITS FOR 2019 NOTE 1: This chart is based on HCD and State CDBG/HOME published Income Limits operative as of: NOTE 2: Actual income limits may be adjusted depending on funding source and housing program. NOTE 3: Income Limits published by HUD may apply to specific programs and will superceed this chart. Income eligibility limits based on the following number of persons in the family household CategoryIncome Extremely Low 15,100 17,250 19,400 21,550 23,300 25,000 26,750 28,450 (CDBG ONLr Extremely low 15,100 17,250 21,330 25,750 30,170 34,590 39,010 43,430 Very low 25,150 28,750 32,350 35,900 38,800 41,650 44,550 4,700 Lower 40,250 46,000 51,750 57,450 62,050 66,650 71,250 75,850 Moderate 58,550 66,900 75,300 83,650 90,350 91,050 103,750 110,400 This information is to be used as a guide only and should not be dependent on final determination. Income categories may not be mathematically related to each other and may differ depending on the funding source and housing program limits. E I I Y 0 1 P 0 1 0 R I 73-510 FRED WARING DRIVE PALM DESERT, CALIFORNIA 92260-2578 TEL: 760 346-o6i i infoC�cityapalmdese rt.org PLANNING COMMISSION MEETING NOTICE OF ACTION February 5, 2020 City of Palm Desert 73-510 Fred Waring Drive Palm Desert, California 92260 Subject: Consideration of an Amendment to the Palm Desert Municipal Code Pertaining to a Housing Overlay District The Planning Commission of the City of Palm Desert considered the request and took the following action at its regular meeting of February 4, 2020: The Planning Commission approved recommending Case No. ZOA 19- 0004 to the City Council for approval by the adoption of Planning Commission Resolution No. 2772. Motion carried by a 4-0 vote, with Commissioner DeLuna ABSENT. Any appeal of the above action may be made in writing to the City Clerk, City of Palm Desert, within fifteen (15) days of the date of the decision. Ryan Stendell, Secretary Palm Desert Planning Commission cc: File Building & Safety Department Public Works Department Fire Marshal Z,PRINTED ON RECYCLED PAPER PLANNING COMMISSION RESOLUTION NO. 2772 i A RESOLUTION BY THE PLANNING COMMISSION OF THE CITY OF PALM DESERT, CALIFORNIA, RECOMMENDING APPROVAL OF A ZONING ORDINANCE AMENDMENT TO AMEND AND REPLACE SECTION 25.28.030 "MEDIUM/HIGH-DENSITY HOUSING OVERLAY DISTRICT" WITH A"HOUSING OVERLAY DISTRICT," AND TO PROVIDE INCENTIVES FOR THE VOLUNTARY CONSTRUCTION OF AFFORDABLE RENTAL UNITS IN NEW RESIDENTIAL PROJECTS CASE NO: ZOA 19-0004 WHEREAS, the Planning Commission of the City of Palm Desert, California, did on the 4th day of February 2020, hold a duly noticed public hearing to consider the request by the City of Palm Desert for approval of the above-noted; and WHEREAS, the City Council, at their meeting of January 10, 2019, formed an "Affordable Housing Policy Subcommittee" and directed the subcommittee to explore affordable housing policy options; and WHEREAS, the subcommittee reviewed policy options and met with stakeholders, and recommended moving forward with a Zoning Ordinance Amendment to establish a "Housing Overlay District" to incentivize the development of new housing units at affordable rents; and WHEREAS, the Housing Overlay District provides optional incentives for property owners and housing developers, who restrict at least 20% of all project units at affordable rents, by providing expedited application processing, potential development impact fee waivers, density bonuses, and reduced parking standards; and WHEREAS, Planning Commission of the City of Palm Desert, in reviewing all the facts and any testimony given adopts the following as its Findings in recommended approval of the Zoning Ordinance Amendment to the City Council: SECTION 1. Findings. The Planning Commission of the City of Palm Desert hereby finds that: A. The City of Palm Desert (the "City"), California, is a municipal corporation, duly organized under the constitution, and laws of the State of California. B. The Planning and Zoning Law authorizes cities to establish by ordinance the regulations for land use and development. SECTION 2. Amendment. The Planning Commission of the City of Palm Desert recommends that the City Council of the City of Palm Desert, California, approve and adopt the. Zoning Ordinance Amendment to replace Section 25.28.030 Medium/High-Density Housing Overlay District with a "Housing Overlay District" as shown in Exhibit A which is attached hereto and incorporated herewith. PLANNING COMMioalON RESOLUTION NO. 2772 SECTION 3. Severability. If any section, subsection, subdivision, paragraph, sentence, clause, or phrase in this ordinance or any part thereof is for any reason held to be unconstitutional or invalid or ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this ordinance or any part thereof. The Planning Commission hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase thereof irrespective of the fact that one (1) or more subsections, subdivisions, paragraphs, sentences, clauses, or phrases be declared unconstitutional, invalid, or ineffective. SECTION 4. California Environmental Quality Act Finding. The Planning Commission of the City of Palm Desert finds the adoption of this ordinance to be categorically exempt from the requirements of the California Environmental Quality Act (CEQA) from environmental review. NOW, THEREFORE, BE IT RESOLVED BY THE PLANNING COMMISSION OF THE CITY OF PALM DESERT, CALIFORNIA, AS FOLLOWS: 1. That the above recitations are true and correct and constitute the findings for approval of the Planning Commission in this case. 2. That the Planning Commission does hereby recommend approval to the City Council of ZOA 19-0004. PASSED, APPROVED,AND ADOPTED by the Planning Commission of the City of Palm Desert, California, at its regular meeting held on the 41h day of February 2020, by the following vote, to wit: AYES: GREENWOOD, GREGORY, HOLT, and PRADETTO NOES: NONE ABSENT: DE LUNA ABSTAIN: NONE LI SAY HOLT, C AIR ATTEST: So� RYAN STENDELL, SECRETARY PALM DESERT PLANNING COMMISSION 2 JL 2-3 ment Imp : Develop act Feesbe sub'ectto a�ee waver o3-17 overlay district may 1 check and inspectio tees. The remainde including plan are available with the CI for a reduction in fees if funding sources funds. 4 o\Y a?6 �a d le OP \, �okQ qv° .�Ja p7 o' NC ay, a 00 �1�a��t� N\`� � ��? a�`OO OO 0 of �o�e° � Zp\�' .,�ility to ae�a�e� L 0 .view of an erection 25.20 �o� ,) 2L �aorhood Specific e foi ovisions of this chapter, d minimum of twenty sME, . rents, or at least one percent ) unit for numb" -�� be rounded up to the next whole Density , on the Zon, -re established in the Zoning Ordinance and for a density residential project under this Chapter is eligible contained in Pa Jer State law. Formulas for density bonuses are pal Code Chapter 25.34.040. I. Unit sizes allowable unit sizes in square feet (sf) shall vary to presence absence of common project amenities. Each units shall as a minimum, a kitchen including two 2 contain, refrigerator/freezer, a sink, counter space, and storageburners, an oven, a a' 3 PLANNING COMMISSION RESOLUTION NO. 2772 A RESOLUTION BY THE PLANNING COMMISSION OF THE CITY OF PALM DESERT, CALIFORNIA, RECOMMENDING APPROVAL OF A ZONING ORDINANCE AMENDMENT TO AMEND AND REPLACE SECTION 25.28.030 "MEDIUM/HIGH-DENSITY HOUSING OVERLAY DISTRICT" WITH A "HOUSING OVERLAY DISTRICT," AND TO PROVIDE INCENTIVES FOR THE VOLUNTARY CONSTRUCTION OF AFFORDABLE RENTAL UNITS IN NEW RESIDENTIAL PROJECTS CASE NO: ZOA 19-0004 WHEREAS, the Planning Commission of the City of Palm Desert, California, did on the 4th day of February 2020, hold a duly noticed public hearing to consider the request by the City of Palm Desert for approval of the above-noted; and WHEREAS, the City Council, at their meeting of January 10, 2019, formed an "Affordable Housing Policy Subcommittee" and directed the subcommittee to explore affordable housing policy options; and WHEREAS, the subcommittee reviewed policy options and met with stakeholders, and recommended moving forward with a Zoning Ordinance Amendment to establish a "Housing Overlay District" to incentivize the development of new housing units at affordable rents; and WHEREAS, the Housing Overlay District provides optional incentives for property owners and housing developers, who restrict at least 20% of all project units at affordable rents, by providing expedited application processing, potential development impact fee waivers, density bonuses, and reduced parking standards; and WHEREAS, Planning Commission of the City of Palm Desert, in reviewing all the facts and any testimony given adopts the following as its Findings in recommended approval of the Zoning Ordinance Amendment to the City Council: SECTION 1. Findings. The Planning Commission of the City of Palm Desert hereby finds that: A. The City of Palm Desert (the "City"), California, is a municipal corporation, duly organized under the constitution, and laws of the State of California. B. The Planning and Zoning Law authorizes cities to establish by ordinance the regulations for land use and development. SECTION 2. Amendment. The Planning Commission of the City of Palm Desert recommends that the City Council of the City of Palm Desert, California, approve and adopt the. Zoning Ordinance Amendment to replace Section 25.28.030 Medium/High-Density Housing Overlay District with a "Housing Overlay District' as shown in Exhibit A which is attached hereto and incorporated herewith. i PLANNING COMMioolON RESOLUTION NO. 2772 SECTION 3. Severability. If any section, subsection, subdivision, paragraph, sentence, clause, or phrase in this ordinance or any part thereof is for any reason held to be unconstitutional or invalid or ineffective by any court of competent jurisdiction, such decision shall not affect the validityor effectiveness of the remaining g portions of this ordinance or any part thereof. The Planning Commission hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase thereof irrespective of the fact that one (1) or more subsections, subdivisions, paragraphs, sentences, clauses, or phrases be declared unconstitutional, invalid, or ineffective. SECTION 4. California Environmental Quality Act Finding. The Planning Commission of the City of Palm Desert finds the adoption of this ordinance to be categorically exempt from the requirements of the California Environmental Quality Act (CEQA) from environmental review. NOW, THEREFORE, BE IT RESOLVED BY THE PLANNING COMMISSION OF THE CITY OF PALM DESERT, CALIFORNIA, AS FOLLOWS: 1. That the above recitations are true and correct and constitute the findings for approval of the Planning Commission in this case. 2. That the Planning Commission does hereby recommend approval to the City Council of ZOA 19-0004. PASSED, APPROVED,AND ADOPTED by the Planning Commission of the City of Palm Desert, California, at its regular meeting held on the 4th day of February 2020, by the following vote, to wit: t AYES: GREENWOOD, GREGORY, HOLT, and PRADETTO NOES: NONE ABSENT: DE LUNA ABSTAIN: NONE 1 LI SAY HOLT, C AIR ATTEST: A RYAN STENDELL, SECRETARY PALM DESERT PLANNING COMMISSION 2 PLANNING COMMISSION SOLUTION NO. 2772 EXHIBIT A 25.28.030 Housing Overlay District A. Intent. The intent of the overlay district is to incentivize the development of affordable housing units in the City of Palm Desert. B. Purpose and applicability. The purpose of the Housing Overlay District (HOD) is to provide optional standards and incentives for the development of a wide variety of housing developments, which provide a minimum of 20% of all units dedicated as income-restricted. The overlay zone is generally applied to properties identified in the City's Housing Element and Housing Authority owned properties as shown in Figure 25.28-1. Wherever the HOD has been added to a base zone, the applicant may choose whether to use the optional HOD standards and/or the standards of the base zone. C. Uses permitted by approved precise plan and conditional use permit. Uses permitted or conditionally permitted in the R-2 and PR zoning districts may be approved through an Architectural Review application process. Housing types applicable to the HOD include, but are not limited to, single-family detached/attached, duplex units, and multi-family development, either for rent or for sale. D. Development standards. Development standards shall be flexible to ensure efficient site planning and neighborhood compatibility and to reflect the unique requirements of integrating income-restricted units into market-rate housing developments. Flexibility to the base zone development standards may be utilized as part of the design review of an Architectural Review application. Design guidance contained in Section 25.20 "Downtown District Design Guidelines," and within the University Neighborhood Specific Plan shall be followed. E. Affordable Housing Requirement. To be eligible for the provisions of this chapter, rental housing development within the HOD shall provide a minimum of twenty percent (20%) of all units within the project at income-restricted rents, or at least one (1) unit for smaller residential projects. All fractional units shall be rounded up to the next whole number. F. Density and intensity. Project densities are established in the Zoning Ordinance and on the Zoning Map. Any mixed-use and residential project under this Chapter is eligible for a density bonus as allowed under State law. Formulas for density bonuses are contained in Palm Desert Municipal Code Chapter 25.34.040. 1. Unit sizes. Minimum allowable unit sizes in square feet (sf) shall vary according to presence or absence of common project amenities. Each unit shall contain, as a minimum, a kitchen including two (2) burners, an oven, a refrigerator/freezer, a sink, counter space, and storage. 3 PLANNING COMM.—LION RESOLUTION NO. 2772 G. Parking requirement. 1. Parking ratios based on bedroom count shall be calculated as follows: Table 25.28-1: Parking Required for Housing Overlay Bedroom Count Parking Ratio Studio / 1 Bedroom 1.50 per unit 2 — 3 Bedrooms 2.00 per unit H. Development Impact Fees: Any mixed-use or residential project eligible under the overlay district may be subject to a fee waiver of City fees for all income-restricted units including plan check and inspection fees. The remainder of the project may be eligible for a reduction in fees if funding sources are available with the City's Affordable Housing funds. 4 MINUTES PALM DESERT PLANNING COMMISSION FEBRUARY 4, 2020 assist with Section 8. Additionally, staff addressed the concern with ADUs and JADUs in the HPR (Hillside Planned Residential) zone. Commissioner Pradetto asked if staff had any other concerns related to the ordinance. Mr. Melloni replied no. Commissioner Pradetto believed that in terms of loopholes, the governor is saying the City's loopholes are his solution. He said from the State's perspective, they are not loopholes it is their intent. Looking at the ordinance as a whole, he liked the architectural requirements and dealing with health and safety. He believed there would be some adjusting throughout the State; however, Palm Desert may not need to rush to build ADUs/JADUs like in other areas. He commented that Palm Desert could learn from other cities' mistakes over time. Chair Holt declared the public hearing open and invited public testimony FAVORING or OPPOSING this matter. With further testimony offered, Chair Holt declared the public hearing closed. Vice-Chair Greenwood stated that Commissioner Pradetto's comments were accurate. Vice-Chair Greenwood moved to waive further reading and adopt Planning Commission Resolution No. 2771, recommending approval of Case No. ZOA 20-0004 to the City Council. The motion was seconded by Commissioner Pradetto and carried by a 4-0 vote (AYES: Greenwood, Gregory, Holt, and Pradetto; NOES: None; ABSENT: DeLuna). B. REQUEST FOR CONSIDERATION to adopt resolutions recommending approval to the City Council to amend the Palm Desert Municipal Code and replace Section 25.28.030 "Medium/High-Density Housing Overlay District" in its entirety with a new "Housing Overlay District," and apply said overlay district to parcels identified in the City's Housing Element and parcels owned by the Housing Authority. Case No. ZOA 19-0004 (City of Palm Desert, Applicant). Principal Planner Eric Ceja outlined the salient points of the staff report and recommended approval to the City Council. He offered to answer any questions. Commissioner Gregory commented that in the past couple of years, staff presented housing projects to the Planning Commission. He asked if a project like The Sands would be more likely to move forward with the Housing Overlay District (HOD). Mr. Ceja responded that The Sands is not a good example. He said that The Sands property has an affordable housing component for the past 30 years. He pointed out that a better example is Parcel G. It is a project that the Planning Commission has recommended approval to the City Council; however, City staff were not able to take it to the Council because staff is still negotiating the affordable housing component for that site. If the City Council approves the ZOA, he stated the City would apply the HOD to Parcel G. 6 MINUTES PALM DESERT PLANNING COMMISSION FEBRUARY 4, 2020 Mr. Stendell added that this request came from a Councilmember. The Councilmember felt that the City was being consistent in being inconsistent with negotiating affordable units. Therefore, the intent was to create something that would be fair, have an incentive base, and help speed up the development of affordable units. Vice-Chair Greenwood inquired if there is any support from utility companies to assist with fees to develop a low-income housing project. Mr. Ceja replied no. However, utility companies have other programs in place. For example, Southern California Edison can cap utility rates or help with utility improvements on properties. He stated that school districts do not waive fees for affordable housing projects. He mentioned that the highest fee developers have to pay in the Coachella Valley is the Transportation Uniform Mitigation Fee, which the Coachella Valley Association of Governments (CVAG) established and manages. CVAG created an exception for affordable housing projects. Mr. Stendell mentioned that the Housing Division was incorporated into the Community Development Department in July 2019, and introduced Senior Management Analyst Jessica Gonzales. For new construction, Ms. Gonzales noted that utility companies are establishing new programs that would facilitate some options for affordable housing projects. Chair Holt declared the public hearing open and invited public testimony FAVORING or OPPOSING this matter. With no testimony offered, Chair Holt declared the public hearing closed. Commissioner Gregory moved to waive further reading and adopt Planning Commission Resolution Nos. 2772 and 2773, recommending approval of Case No. ZOA 19- 0004 to the City Council. The motion was seconded by Commissioner Pradetto and carried by a 4-0 vote (AYES: Greenwood, Gregory, Holt, and Pradetto; NOES: None; ABSENT: DeLuna). XI. MISCELLANEOUS None XII. COMMITTEE MEETING UPDATES A. ART IN PUBLIC PLACES None B. PARKS & RECREATION Vice-Chair Greenwood reported that there was an election of officers, and the Commission discussed a community service award program. 7 'Alilliliffililik, U I Y Of PH L M D ESER T 73-510 FRED WARING DRIVE PALM DESERT, CALIFORNIA 92260-2578 TEL: 760 346-o6i i info@cityofpalmdesert.org PLANNING COMMISSION MEETING NOTICE OF ACTION February 5, 2020 City of Palm Desert 73-510 Fred Waring Drive Palm Desert, California 92260 Subject: Consideration of a Zoning Ordinance Amendment to Apply a Housing Overlay District to Housing Authority Parcels and Parcels Identified in the Housing Element The Planning Commission of the City of Palm Desert considered the request and took the following action at its regular meeting of February 4, 2020: The Planning Commission approved recommending Case No. ZOA 19- 0004 to the City Council for approval by the adoption of Planning Commission Resolution No. 2773. Motion carried by a 4-0 vote, with Commissioner DeLuna ABSENT. Any appeal of the above action may be made in writing to the City Clerk, City of Palm Desert, within fifteen (15) days of the date of the decision. 11�9b- Ryan Stendell, Secretary Palm Desert Planning Commission cc: File Building & Safety Department Public Works Department Fire Marshal is veiNrco off ercvuEo anvEx r PLANNING COMMISSION RESOLUTION NO. 2773 A RESOLUTION BY THE PLANNING COMMISSION OF THE CITY OF PALM DESERT, CALIFORNIA, RECOMMENDING APPROVAL TO THE CITY COUNCIL OF A ZONING ORDINANCE AMENDMENT TO APPLY THE HOUSING OVERLAY DISTRICT TO HOUSING AUTHORITY PARCELS AND PARCELS IDENTIFIED IN THE CITY'S HOUSING ELEMENT (APNS: 623- 370-014, 627-120-013, 685-010-005, 694-120-028, 694-130-016, 694-130- 017, 694-190-087, 694-200-014, 694-200-024, 694-510-001, & 694-510-013) CASE NO: ZOA 19-0004 WHEREAS, the Planning Commission of the City of Palm Desert, California, did on the 4th day of February 2020, hold a duly noticed public hearing to consider the request by the City of Palm Desert for approval of the above-noted; and WHEREAS, the City Council, at their meeting of January 10, 2019, formed an "Affordable Housing Policy Subcommittee" and directed the subcommittee to explore affordable housing policy options; and WHEREAS, the subcommittee reviewed policy options and met with stakeholders, and recommended moving forward with a Zoning Ordinance Amendment to establish a "Housing Overlay District" to incentivize the development of new housing units at affordable rents; and WHEREAS, the subcommittee reviewed which properties to apply the Housing Overlay District recommended starting with Housing Authority parcels and those parcels identified in the City's Housing Element; and WHEREAS, the Planning Commission of the City of Palm Desert, in reviewing all the facts and any testimony given adopts the following as its Findings in recommended approval of the Zoning Ordinance Amendment to the City Council: SECTION 1. Findings. The Planning Commission of the City of Palm Desert hereby finds that: A. The City of Palm Desert (the "City"), California, is a municipal corporation, duly organized under the constitution, and laws of the State of California. B. The Planning and Zoning Law authorizes cities to establish by an ordinance the regulations for land use and development. SECTION 2. Amendment. The Planning Commission of the City of Palm Desert recommends that the City Council of the City of Palm Desert, California, approve and adopt the Zoning Ordinance Amendment creating the Housing Overlay District and applying the overlay to parcels as shown in Exhibit A which is attached hereto and incorporated herewith. SECTION 3. Severability. If any section, subsection, subdivision, paragraph, sentence, clause, or phrase in this ordinance or any part thereof is for any reason held to be unconstitutional or invalid or ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this ordinance or any 1 PLANNING COMMISSION RESOLUTION NO. 2773 part thereof. The Planning Commission hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase thereof irrespective of the fact that one (1) or more subsections, subdivisions, paragraphs, sentences, clauses, a or phrases be declared unconstitutional, invalid, or ineffective. SECTION 4. California Environmental Quality Act Finding. The Planning Commission of the City of Palm Desert finds the adoption of this ordinance to be categorically exempt from the requirements of the California Environmental Quality Act (CEQA) from environmental review. NOW, THEREFORE, BE IT RESOLVED BY THE PLANNING COMMISSION OF THE CITY OF PALM DESERT, CALIFORNIA, AS FOLLOWS: 1. That the above recitations are true and correct and constitute the findings for approval of the Planning Commission in this case. 2. That the Planning Commission does hereby recommend approval to the City Council of ZOA 19-0004. PASSED, APPROVED,AND ADOPTED by the Planning Commission of the City of Palm Desert, California, at its regular meeting held on the 411 day of February 2020, by the following vote, to wit: AYES: GREENWOOD, GREGORY, HOLT, and PRADETTO NOES: NONE Lj ABSENT: DE LUNA ABSTAIN: NONE LI D AY HOLT, CHAT ATTEST: T4� RYAN STENDELL, SECRETARY PALM DESERT PLANNING COMMISSION 2 PLANNING COMMISSION rESOLUTION NO. 2773 EXHIBIT A - Open Space Conventional Suburban Neighborhood ' Rural Neighborhood -- CD�I E� F Golf Course&Resort Neighborhood G Small Town Neighborhood Town Center Neighborhood ' - Employment { B - Industrial - Public Facility/Institutional Resort&Entertainment ! o - Regional Retail Suburban Retail Center - Neighborhood Center - Downtown I UT c : �yN PALM DESERT GENERAL PLAN/ HOUSING ELEMENT x� I City of Palm Desert PLANNING COMMISSION RESOLUTION NO. 2773 Case No. ZOA 19-0004 Date: 2 4 2020 3 D PC 23430 �� �� ►cf mediagroup Green Bay,WI 54305-3430 Y [£} 5E ( Tel:760 778 4578/Fax 760.778 4731 PART OFTHE USATODAY NETWORK Email:legals@thedesertsun.com 4PAo F OF City Of Palm Desert PUBLICATION STATE OF CALIFORNIA SS. FEB 0 7 2020 COUNTY OF RIVERSIDE Community Development CITY OF PALM DESERT LEGAL NOTICE CASE NO.ZOA 19-0004 CITY OF PALM DESERT NOTICEOFINTENTOF THE PALM DESERTPLANNINGCOMMISSIONTOAPPROVE 73510 FRED WAKING DR A RESOLUTIONRECOMMENDINGAPPROVALTO THE CITY COUNCILOFA ZON- ING ORDINANCE AMENDMENT TO ESTABLISHA HOUSING OVERLAY DISTRICI AND TO APPLYTHE OVERLAY DISTRICTTO HOUSING AUTHORITY PROPERTIE AND PROPERTIESDENTIFIEDIN THE CITY'SHOUSING ELEMENTAND ADOPT A PALM DESERT CA 92260 NOTICE OF EXEMPTION UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT The City of Palm Desert (City), in its capacity as the Lead Agency under the California Environmental Quality Act(CEQA).has determined that this Zoning Ordinance Amendment (ZOA)is exempt from CEQA review pursuant to Section T5060(c)2 in that the proposed action will not result in a direct or reasonably foreseeabe indirect ph ioal change in the environment, and Section 15061(b)3 I am over the age of 18 years old,a citizen of the n that the ZOA to establish the overlay zone will not result in a direct impact to the built environment, and that specific projects within the overlay zone will be evaluated in accordance with CEQA when a development application is filled. United States and not a party to,or have interest in Therefore, the Director of Community Development is recommending that the Planning Commission adopt a Notice of Exemption under the CEOA guidelines. this matter. I hereby certify that the attached Project Location:The Housing Overlay District (HOD)is intended to be applied to the advertisement appeared in said newspaper(set in 627-1: CnY DESERT LEGAL OF OFPALM PALM ICE 694-2( CASE NO.ZOA 19.OD04 type not smaller than non pariel)in each and entire code NOTICE OF INTENT OF THE PALM DESERT PLANNING COMMISSION TO APPROVE issue of said newspaper and not in any supplement The F A RESOLUTION RECOMMENDING APPROVAL TO THE CITY COUNCIL OF A ZON- units i ING ORDINANCE AMENDMENT TO ESTABLISH A HOUSING OVERLAY DISTRICT thereof on the following dates,to wit: I¢e th AND TO APPLY THE OVERLAY DISTRICT TO HOUSING AUTHORITY PROPERTIES fordab AND PROPERTIES IDENTIFIED IN THE CITY'S HOUSING ELEMENT;AND ADOPT A ment NOTICE OF EXEMPTION UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ratios, ACT opme 01/25/20 Remo The City of Palm Desert(City), in its capacity as the Lead Agency under the resoiu California Environmental Quality Act(CEQA), has determined that this Zoning Ordinance Amendment(ZOA)is exempt from CEQA review pursuant to Section to movf! 1S060(02 in that the proposed action will not result in a direct or reasonably r E foreseeable indirect physical change in the environment,and Section 15061(b)3 Pub,, I acknowledge that I am a principal clerk of the on in that the ZOA to est blWt the overlay zone will not result in a direct impact to the built environment,and that specific projects within the overlay zone will be printer of The Desert Sun,printed and published Comm evaluated in accordance with CEQA when'a development application is filled. should Therefore,the Director of Community Development is recommending that the weekly in the City of Palm Springs,County Of project Planning Commission adopt a Notice of Exemption under the CEQA guidelines. Public Project Location:The Housing Overlay District(HOD)is intended to be applied Riverside, State of California.The Desert Sun was from 8 to the following parcels as identified by Assessor Parcel Numbers:622-370-014, Plannin 627-122-013,685-010-005,694-120-028,694-130-017,694-130-021, 694-190.087, adjudicated a Newspaper of general circulation on raised r 694-200-014,694-20ao24,694-310-W6,694-510-001,and 694-510-013. in this t March 24, 1988 by the Superior Court of the sion hei Cade Amendment Description: Eric C The HOD is intended to incentivize the development of affordable housing County of Riverside,State of California Case No. 73 51 units in the City by providing optional development incentives.By opting Palm to uti- [ lize the HOD,property owners agree to provide 20%of all housing units at af- 191236. 760 fordable rents.In doing so,the property owner is eligible for flexible develop- ( )a mein standards,density bonuses in accordance with State law,reduced parking eceaC ratios,expedited application processing,and potential waiver of certain clever- RYAN opment impact fees. I certify under penalty of perjury, the laws of p Palm C Recommendation:Staff is recommending that the Planning Commission adopt a resolution supporting the changes to the Zoning Ordinance,and allow the item the State of California,that the foregoing is true and to move forward to a public hearing with the City Council. Public Hearing.The public hearing will be held before the Planning Commission correct.. Executed on this 28th of January 2020 in on February 4,2020,at 6:00 pm. Green Bay. WI.County of Brown. Comment Period: Based on the time limits defined by CEQA,your response should be sent at the earliest possible date.The public comment period for this project is from January 25,2020,to February 4,2020. Public Review:The ZOA is available for public review Monday through Friday from 8:00 a.m.to 5:00 p.m.at City Hall.Please submit written comments to the 'Planning Department. If any group challenges the action in court, the issues raised may be limited to only those issues raised at the public hearing described in this notice or in written correspondence at,or prior to the Planning Commis- sion hearing.All comments and any questions should he directed to: Eric Ceja,Principal Planner City of Palm Desert 73-510 Fred Waring Drive DECLARANT Palm Desert.CA 92260 (760)346-0611,Extension 384 eceia@cityofpalrndesert.org RYAN STENDELL,Secretary Ad#:0004018783 Palm Desert Planning Commission Pub:1125/2020 P O:ZOA 19-0004 This is not an invoice #of Affidavits: 1 CITY OF PALM DESERT PLANNING COMMISSION STAFF REPORT COMMUNITY DEVELOPMENT DEPARTMENT DATE: February 4, 2020 PREPARED BY: Eric Ceja, Principal Planner REQUEST: Consideration of approval to adopt resolutions recommending approval to the City Council to amend the Palm Desert Municipal Code and replace Section 25.28.030 "Medium/High-Density Housing Overlay District' in its entirety with a new "Housing Overlay District," and apply said overlay district to parcels identified in the City's Housing Element and parcels owned by the Housing Authority. Recommendation Waive further reading and: 1. Adopt Planning Commission Resolution No. 2772, recommending to the City Council approval of Zoning Ordinance Amendment 19-0004 to replace Section 25.28.030 "Medium/High-Density Housing Overlay District" in its entirety with a new "Housing Overlay District" of the Palm Desert Zoning Ordinance. 2. Adopt Planning Commission Resolution No. 2773, recommending to the City Council approval of Zoning Ordinance Amendment 19-0004 to apply the "Housing Overlay District"to parcels of land identified in Exhibit A of the resolution. Background Analysis On January 10, 2019, the City Council directed staff to form an ad-hoc 'Affordable Housing Subcommittee"for the following: • Review the City's affordable housing and planning policies. • Review existing planning policies from around the State. • Perform a comparative analysis of available affordable housing with other Coachella Valley cities. • Explore affordable housing policy options for the City of Palm Desert. Throughout 2019, Community Development staff from the Planning and Housing Divisions worked with Councilmembers Harnik and Kelly to perform the tasks mentioned above. In October 2019, staff held an open house at City Hall and presented the findings and policy recommendations to the public. Based on that meeting, the subcommittee has initiated a February 4, 2020 — Staff Report ZOA 19-0004: Housing Overlay District Page 2 of 4 Zoning Ordinance Amendment (ZOA) to establish a new and voluntary Housing Overlay District. Project Description Housing Overlay District: The proposed ordinance replaces the existing "Medium/High-Density Overlay District" (MHDO) with a new "Housing Overlay District" (HOD). The HOD intends to incentivize the development of affordable housing units in the City by providing optional development standards for housing developers that choose to dedicate at least 20% of all housing units constructed at affordable rents. By utilizing the HOD, housing developers are provided the following: • Flexible development standards. • Expedited application processing. • Waiver of a Planning Commission public hearing. • Density Bonuses in accordance with State Density Bonus provisions. • Reduced parking standards. • Potential waiver of City development impact fees. The HOD does not require property owners or residential housing developers to utilize the incentives provided in the overlay district. Rather, the HOD intends to encourage voluntary participation by developers to create new affordable housing units. Applicability.- As recommended by the subcommittee, the HOD will be applied to parcels owned by the Housing Authority and properties, developed or undeveloped, and identified in the City's Housing Element. In discussing where to apply the HOD, the subcommittee looked at Housing Authority properties and the City's Housing Element. Housing Authority properties traditionally are developed with units at affordable rents, and generally receive density bonuses and parking reductions. There are two Housing Authority parcels recommended to receive the HOD. One property is located at the Desert ARC campus on Country Club Drive that is entitled to have 36 housing units for persons with special needs. The second property is an undeveloped 1.26-acre parcel located at the southeast corner of San Pascual Avenue and Santa Rosa Way. The Housing Authority anticipates soliciting developer interest in this parcel later this year. In 2013, the City Council adopted the Housing Element and established a minimum number of housing units for 10 parcels north of Frank Sinatra Drive. Two of those parcels: the Vineyard Apartments and Sage at Ponderosa are developed or under construction. The other eight parcels remain vacant or currently under review with the Planning Department for new housing development. Applying the HOD to all 10 parcels will provide property owners an option to build affordable units on the parcels or build market-rate units. In the past, Planning staff has negotiated an affordable housing requirement for these parcels. The negotiations have resulted in significant delays, and many interested developers have GAPlanning\Eric Ceja\Case FIIes\ZOA\ZOA 19.0004 Housing Overlay\PC Staff Report(ZOA 19-0004).doc February 4, 2020 — Staff Report ZOA 19-0004: Housing Overlay District Page 3 of 4 chosen not to develop. The HOD will minimize the need to negotiate unduly and incentivize developers to provide affordable units within their projects. The map below identifies the parcels (included in Resolution No. 2773. kIly, pWw. F CRV (ac) MY a 10(act p {4 17 a EXS�I k WWIRY CUN Wn p} c uaM agv 'AUTHO771 g n PALM DESERT GENERAL PLAN!HOUSING ELEMENT -0—Space =Town Caner..hemnaetl_R--Rabe l'.Cmvan4anal5WUNan NagRLaRaatl_Emgoyrtynt _Sueuroan RaW CamR Rvtl NeqOarl,aaa -ntluabal -tY'V, L •Jv e 'GdlCaxaa b Raadl Na�RVIgaG w RIRM RMRv IntlnaOonY -Omvnb' `°�tl SmW TaWn WpnDvnooe 'R«wbEnenrmmant M1WTYMA Medium/High-Density Housing Overlay District. The MHDO was established in 2013 as part of the comprehensive Zoning Ordinance Update. The purpose of the MHDO was to allow higher density residential development north of Frank Sinatra Drive in the undeveloped areas of the City previously referred to, "University Park Area." In 2017, the City adopted a comprehensive General Plan update and the University Park Neighborhood Specific Plan. These documents provided policies that increased zoning densities and established neighborhood design criteria for the University Park Area. In 2018, the City updated the zoning standards and densities to be consistent with the General Plan. As such, the MHDO is no longer necessary. Rather than remove the overlay from the Zoning Ordinance, staff recommends replacing the overlay with the new HOD. Environmental Review The Director of Community Development has determined that the proposal to amend the Zoning Ordinance for the creation of the Housing Overlay District will not have an impact on GAPlanning\Eric Ceja\Case Files\ZOA\ZOA 19-0004 Housing Overlay\PC Staff Report(ZOA 19-0004).doc February 4, 2020 — Staff Report ZOA 19-0004: Housing Overlay District Page 4 of 4 the environment. Any development proposal that qualifies under the overlay zone will require an environmental review as part of the review of that project. Findings of Approval Findings can be made in support of the project and in accordance with the City's Municipal Code. Findings in support of this project are contained in Planning Commission Resolution Nos. 2772 and 2773, attached to this staff report. LEGAL REVIEW DEPT. REVIEW FINANCIAL ASSISTANT CITY REVIEW MANAGER N/A N/A N/A Robert W. Hargreaves Ryan Stendell, Director of Janet Moore Andy Firestine City Attorney Community Development Director of Finance Assistant City Manager City Manager, Lauri A laian: N/A ATTACHMENTS: 1. Draft Planning Commission Resolution No. 2772 2. Draft Planning Commission Resolution No. 2773 3. Public Hearing Notice 4. Housing Commission Minutes of January 8, 2020 G:\Planning\Eric Ceja\Case Files\ZOA\ZOA 19-0004 Housing Overlay\PC Staff Report(ZOA 19-0004).doc PLANNING COMMISSION RESOLUTION NO. 2772 A RESOLUTION BY THE PLANNING COMMISSION OF THE CITY OF PALM DESERT, CALIFORNIA, RECOMMENDING APPROVAL OF A ZONING ORDINANCE AMENDMENT TO AMEND AND REPLACE SECTION 25.28.030 "MEDIUM/HIGH-DENSITY HOUSING OVERLAY DISTRICT" WITH A "HOUSING OVERLAY DISTRICT," AND TO PROVIDE INCENTIVES FOR THE VOLUNTARY CONSTRUCTION OF AFFORDABLE RENTAL UNITS IN NEW RESIDENTIAL PROJECTS CASE NO: ZOA 19-0004 ,ailllil�I��I,! WHEREAS, the Planning Commission of the City of Palm Desert, California, did on the 41h day of February 2020, hold a duly noticed public hearing to consider the request by the City of Palm Desert for approval of the above-noted; and WHEREAS, the City Council, at their meeting of January 10, 2019, formed an "Affordable Housing Policy Subcommittee" and directed the subcommittee to explore affordable housing policy options; and '�p!IIV�i�i�l!U !ull�lil�u WHEREAS, the subcommittee reviewed policy options and met with stakeholders, and recommended moving forward with a Zoning Ordinance Amendment to establish a "Housing Overlay District" to incentivize the development of new housing units at affordable rents; and WHEREAS, the Housing Overlay District provides optional incentives for property owners and housing developers, who restrict at least 20% of all project units at affordable rents, by providing expedited application processing, potential development impact fee waivers, density bonuses, and reduced parking standards; and WHEREAS, Planning Commission of the City of Palm Desert, in reviewing all the facts and any testimony given adopts the following as its Findings in recommended approval of the Zoning Ordinance Amendment to the City Council: SECTION 1. Findings. The Planning Commission of the City of Palm Desert hereby finds that: A. The City of Palm Desert (the "City"), California, is a municipal corporation, duly organized under the constitution, and laws of the State of California. B. The Planning and Zoning Law authorizes cities to establish by ordinance the regulations for land use and development. SECTION 2. Amendment. The Planning Commission of the City of Palm Desert recommends that the City Council of the City of Palm Desert, California, approve and adopt the Zoning Ordinance Amendment to replace Section 25.28.030 Medium/High-Density Housing Overlay District with a "Housing Overlay District" as shown in Exhibit A which is attached hereto and incorporated herewith. PLANNING COMMISSION rsESOLUTION NO. 2772 SECTION 3. Severability. If any section, subsection, subdivision, paragraph, sentence, clause, or phrase in this ordinance or any part thereof is for any reason held to be unconstitutional or invalid or ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this ordinance or any part thereof. The Planning Commission hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase thereof irrespective of the fact that one (1) or more subsections, subdivisions, paragraphs, sentences, clauses, or phrases be declared unconstitutional, invalid, or ineffective. SECTION 4. California Environmental Quality Act Finding. The Planning Commission of the City of Palm Desert finds the adoption of this ordinance to be categorically exempt from the requirements of the California Environmental Quality Act (CEQA) from environmental review. NOW, THEREFORE, BE IT RESOLVED BY THE PLANNING COMMISSION OF THE CITY OF PALM DESERT, CALIFORNIA, AS FOLLOWS: 1. That the above recitations are true an orrect and constitute the findings for approval g 1p;,;; of the Planning Commission in this cas i, i III 2. That the Planning Commission does hereby'reoommend approval to the City Council of ZOA 19-0004. PASSED, APPROVED,AND ADOPTED by the Planning Commission of the City of Palm Desert, California, at its regular meeting held on the 41h day of February 2020 by the following vote, to wit: j�ll���lll�lli��iu��uiulllllll�l�) ��' � pi�llh (�� I III, I�I AYES: I NOES: ABSENT: ABSTAIN: yea+i i, 1' LINDSAY HOLT, CHAIR ATTEST: RYAN STENDELL, SECRETARY PALM DESERT PLANNING COMMISSION 2 PLANNING COMMISSIO1 ESOLUTION NO. 2772 EXHIBIT A 25.28.030 Housing Overlay District A. Intent. The intent of overlay district is to incentivize the development of affordable housing units in the City of Palm Desert. B. Purpose and applicability. The purpose of the Housing Overlay District (HOD) is to provide optional standards and incentives for the development of a wide variety of housing developments, which provide a minimum of 20% of all units dedicated as income-restricted. The overlay zone is generally applied to properties identified in the City's Housing Element and Housing Authority owned properties as shown in Figure 25.28-1. Wherever the HOD has been added to a base zone, the applicant may choose whether to use the optional HOD standards and/or the standards of the base zone. C. Uses permitted by approved precise plan and conditional use permit. Uses permitted or conditionally permitted in the R-2 and PR zoning districts may be approved through an Architectural Review application process. Housing types applicable to the HOD include, but are not limited to, single-family detached/attached, duplex units, and multi-family development, either for rent or for sale. D. Development standards. Development standards shall be flexible to ensure efficient site planning and neighborhood compatibility and to reflect the unique requirements of integrating income-restricted units into market-rate housing developments. Flexibility to the base zone development standards may be utilized as part of the design review of an Architectural Review application. Design guidance contained in Section 25.20 "Downtown District Design Guidelines," and within the University Neighborhood Specific Plan shall be followed. E. Affordable Housing Requirement. To be eligible for the provisions of this chapter, rental housing development within the HOD shall provide a minimum of twenty percent (20%) of all units within the project at income-restricted rents, or at least one (1) unit for smaller residential projects. All fractional units shall be rounded up to the next whole number. F. Density and intensity. Project densities are established in the Zoning Ordinance and on the Zoning Map. Any mixed-use and residential project under this Chapter is eligible for a density bonus as allowed under State law. Formulas for density bonuses are contained in Palm Desert Municipal Code Chapter 25.34.040. 1. Unit sizes. Minimum allowable unit sizes in square feet (sf) shall vary according to presence or absence of common project amenities. Each unit shall contain, as a minimum, a kitchen including two (2) burners, an oven, a refrigerator/freezer, a sink, counter space, and storage. 3 PLANNING COMMISSIOim RESOLUTION NO. 2772 G. Parking requirement. 1. Parking ratios based on bedroom count shall be calculated as follows: Table 25.28-1: Parking Required for Housing Overlay Bedroom Count Parking Ratio Studio / 1 Bedroom 1.50 per unit 2 — 3 Bedrooms 2.00 per unit H. Development Impact Fees: Any mixed-use or residential project eligible under the overlay district may be subject to a fee waiver of City fees for all 'income-restricted units including plan check and inspection fees. The remainder of the project may be eligible for a reduction in fees if funding sources are vailable with the City's Affordable Housing funds. ,V { "I��II �lil�l��lhi Ililil�ill!�"` '��!IIII!{li!Illi�� '�!I) j'I I!II!Iliilii IIIIII I ii,, I I,,I, � Ili ;, I'IIIII Ijliil,l 'I�Illililll( I ''� I�;�,I , 'I'IIII iII II illl r ho �upi'iVii' 01; E, h+ , 4 PLANNING COMMISSION RESOLUTION NO. 2773 A RESOLUTION BY THE PLANNING COMMISSION OF THE CITY OF PALM DESERT, CALIFORNIA, RECOMMENDING APPROVAL TO THE CITY COUNCIL OF A ZONING ORDINANCE AMENDMENT TO APPLY THE HOUSING OVERLAY DISTRICT TO HOUSING AUTHORITY PARCELS AND PARCELS IDENTIFIED IN THE CITY'S HOUSING ELEMENT (APNS: 623- 370-014, 627-120-013, 685-010-005, 694-120-028, 694-130-016, 694-130- 017, 694-190-087, 694-200-014, 694-200-024, 694-510-001, & 694-510-013) CASE NO: ZOA 19-0004 WHEREAS, the Planning Commission of the City of Palm Desert, California, did on the 4th day of February 2020, hold a duly noticed public hearing to consider the request by the City of Palm Desert for approval of the above-noted; and WHEREAS, the City Council, at their meeting of January 10, 2019, formed an "Affordable Housing Policy Subcommittee" and directed the subcommittee to explore affordable housing policy options; and WHEREAS, the subcommittee reviewed policy options and met with stakeholders, and recommended moving forward with a Zoning Ordinance Amendment to establish a "Housing Overlay District" to incentivize the development of new housing units at affordable rents; and WHEREAS, the subcommittee reviewed which properties to apply the Housing Overlay District recommended starting with Housing Authority parcels and those parcels identified in the City's Housing Element; and WHEREAS, the Planning Commission of the City of Palm Desert, in reviewing all the facts and any testimony given adopts the following as its Findings in recommended approval of the Zoning Ordinance Amendment to the City Council: SECTION 1. Findings The Planning Commission of the City of Palm Desert hereby finds that: � A. The City of Palm Desert (the "City"), California, is a municipal corporation, duly organized under the constitution, and laws of the State of California. B. The Planning and Zoning Law authorizes cities to establish by an ordinance the regulations for land use and development. SECTION 2. Amendment. The Planning Commission of the City of Palm Desert recommends that the City Council of the City of Palm Desert, California, approve and adopt the Zoning Ordinance Amendment creating the Housing Overlay District and applying the overlay to parcels as shown in Exhibit A which is attached hereto and incorporated herewith. SECTION 3. Severability. If any section, subsection, subdivision, paragraph, sentence, clause, or phrase in this ordinance or any part thereof is for any reason held to be unconstitutional or invalid or ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this ordinance or any PLANNING COMMISSIO1 ESOLUTION NO. 2773 part thereof. The Planning Commission hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase thereof irrespective of the fact that one (1) or more subsections, subdivisions, paragraphs, sentences, clauses, or phrases be declared unconstitutional, invalid, or ineffective. SECTION 4. California Environmental Quality Act Finding. The Planning Commission of the City of Palm Desert finds the adoption of this ordinance to be categorically exempt from the requirements of the California Environmental Quality Act (CEQA) from environmental review. NOW, THEREFORE, BE IT RESOLVED BY THE PLANNING COMMISSION OF THE CITY OF PALM DESERT, CALIFORNIA, AS FOLLOWS: 1. That the above recitations are true and correct and constitute the findings for approval of the Planning Commission in this case. 2. That the Planning Commission does hereby recommend approval to.the City Council of ZOA 19-0004. PASSED, APPROVED,AND ADOPTED by the Planning Commission of the City of Palm Desert, California, at its regular meeting held on the 41h day of February 2020 by the following vote, to wit: gllll„I: uiu�illlllill����j lllll�) (l AYES: I NOES: ,Ij iijl°II ��ii Ii�lli l�1�, �, ;iljll �,I I�I,Ii,I;lllli�l ABSENT: ABSTAIN: hNlil�Iri Fi �� I) LINDSAY HOLT, CHAIR �h4rl��,ha IIiIIII�I�, ATTEST: iPi j��yi RYAN STENDELL, SECRETARY PALM DESERT PLANNING COMMISSION 2 PLANNING COMMISSION r ESOLUTION NO. 2773 EXHIBIT A A - Open Space Conventional Suburban Neighborhood' Rural Neighborhood G Golf Course&Resort Neighborhood E �F Small Town Neighborhood Town Center Neighborhood -`�= - Employment H - Industrial _ - Public Facility/Institutional Resort&Entertainment - Regional Retail / ) - Suburban Retail Center Neighborhood Center - Downtown47 ` PALM DESERT GENERAL PLAN/ HOUSING ELEMENT T' , "FT'i7tN� City of Palm Desert G AT LM,D PLANNING COMMISSION RESOLUTION NO. Case No. ZOA 19-0004 Date: 2/4/2020 �cA'FbRM:" y 3 CITY OF PALM DESERT LEGAL NOTICE CASE NO. ZOA 19-0004 NOTICE OF INTENT OF THE PALM DESERT PLANNING COMMISSION TO APPROVE A RESOLUTION RECOMMENDING APPROVAL TO THE CITY COUNCIL OF A ZONING ORDINANCE AMENDMENT TO ESTABLISH A HOUSING OVERLAY DISTRICT AND TO APPLY THE OVERLAY DISTRICT TO HOUSING AUTHORITY PROPERTIES AND PROPERTIES IDENTIFIED IN THE CITY'S HOUSING ELEMENT; AND ADOPT A NOTICE OF EXEMPTION UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT The City of Palm Desert (City), in its capacity as the Lead Agency under the California Environmental Quality Act (CEQA), has determined that this Zoning Ordinance Amendment (ZOA) is exempt from CEQA review pursuant to Section 15060(c)2 in that the proposed action will not result in a direct or reasonably foreseeable indirect physical change in the environment, and Section 15061(b)3 in that the ZOA to establish the overlay zone will not result in a direct impact to the built environment, and that specific projects within the overlay zone will be evaluated in accordance with CEQA when a development application is filled. Therefore, the Director of Community Development is recommending that the Planning Commission adopt a Notice of Exemption under the CEQA guidelines. Project Location: The Housing Overlay District (HOD) is intended to be applied to the following parcels as identified by Assessor Parcel Numbers: 622-370-014, 627-122-013, 685-010-005, 694-120-028, 694-130-017, 694-130-021, 694-190-087, 694-200-014, 694-200-024, 694-310- 006, 694-510-001, and 694-510-013. Code Amendment Description: The HOD is intended to incentivize the development of affordable housing units in the City by providing optional development incentives. By opting to utilize the HOD, property owners agree to provide 20% of all housing units at affordable rents. In doing so, the property owner is eligible for flexible development standards, density bonuses in accordance with State law, reduced parking ratios, expedited application processing, and potential waiver of certain development impact fees. Recommendation: Staff is recommending that the Planning Commission adopt a resolution supporting the changes to the Zoning Ordinance, and allow the item to move forward to a public hearing with the City Council. Public Hearing: The public hearing will be held before the Planning Commission on February 4, 2020, at 6:00 pm. Comment Period: Based on the time limits defined by CEQA, your response should be sent at the earliest possible date. The public comment period for this project is from January 25, 2020, to February 4, 2020. Public Review: The ZOA is available for public review Monday through Friday from 8:00 a.m. to 5:00 p.m. at City Hall. Please submit written comments to the Planning Department. If any group challenges the action in court, the issues raised may be limited to only those issues raised at the public hearing described in this notice or in written correspondence at, or prior to the Planning Commission hearing. All comments and any questions should be directed to: Eric Ceja, Principal Planner City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 (760) 346-0611, Extension 384 eceja@cityofpalmdesert.org PUBLISH: DESERT SUN RYAN STENDELL, Secretary PRELIMINARY MINUTES PALM DESERT HOUSING COMMISSION JANUARY 8, 2020 V. NEW BUSINESS A. REQUEST FOR CONSIDERATION of recommendation to the Housing Authority Board and City Council to approve the Housing Overlay District for the establishment of an affordable housing incentive policy to be presented at a future meeting. Senior Management Analyst, Jessica Gonzales provided a brief summary of the request before the Commission and introduced Principal Planner, Eric Ceja for the presentation of the Housing Overlay District. Mr. Ceja provided a short introduction of himself. He then provided a summary of the background to the Housing Overlay District, stating last year City Council appointed a subcommittee including Mrs. Gonzales, himself and council members, Jan Harnik and Kathleen Kelly, to explore affordable housing policies for the City of Palm Desert. After reviewing a range of different policies, the suhmittee is recommending a zoning ordinance amendment which establishes a Hod$'10g Overlay District. Mr. Ceja explained the Housing Element Plan submitted to the State contains requirements that the City is mandated to perform, specifically the Regional Housing Needs Assessment (RHNA) which requires the City to plan for a number of housing units to be built during an eight year cycle, with the upcoming cycle to begin 2021. The City has had many proposals come forward for residential developments which has led to staff being tasked with looking at ways to achieve additional affordable housing for each of these developments. Previous negotiations with developers have been individualized resulting in a variety of different incentives being provided and applied to each project. City Council requested st search the, possibility of devising a standard policy for incentives offered to interested devei6Oi s, instead of individualized negotiations of incentives for each project. Mr. Ceja further stated Mrs. Gonzales and he reviewed the City's goals and policies in the General Plan, Strategic Plan, and the Housing Element to see what policies are established at the city level that are similar which specifically address affordable housing. They also looked at a metric of how best to view housing as a whole for the City. Their research found a jobs housing balance of one and a half jobs for every household was promoted by both the American Planning Association and the Building Industry Association. They also reviewed RHNA. The State has determined 1.3 million homes will need to be built in Southern California over the next eight year cycle which begins in 2021. An estimated 2,700 of those homes are to be built in the City of Palm Desert. The proposed affordable housing units will vary from very low income to above moderate income. Director of Community Development, Ryan Stendell, commented in the last five years the City has built less than 100 units per year, so this metric is very ambitious. Reviewing the RHNA Cycles, in 1998 the City met its overall goal for total number of units required. However, in 2007, recession hit and the State eliminated Redevelopment Agencies which significantly cut into the City's ability to develop housing. The City was ultimately unable to meet RHNA's goal number. With the end of the current RHNA cycle, 2014 through 2021, the City was able to meet the required production numbers based on private market development and Housing Authority projects that have been completed, 2 PRELIMINARY MINUTES PALM DESERT HOUSING COMMISSION JANUARY 8, 2020 specifically, the Carlos Ortega Villas. Mrs. Gonzales noted these numbers also include projects that have been approved, but are not yet constructed. Mr. Ceja stated Mrs. Gonzales and he used the metric of one and a half jobs for everyone household promoted by the American Planning Association and the Building Industry Association to see how the City of Palm Desert compares to this standard. A review of Palm Desert's portfolio reveals approximately 1,700 units built which are currently in operation with 245 committed units in the very low income category. Upon inquiry as to whether these are rental properties or owner occupied, Mrs. Gonzales explained there are four different housing categories. The first being the fifteen Housing Authority communities, the second category are 350 developer provided units which are through a housing agreement utilizing a density bonus, the third category are owner occupied, which are single family homes offered at the Falcon Crest and Desert Rose communities as well as infill homes built through selp and Habitat for Humanity of the Coachella Valley. The fourth category, Entities, is 6 combination of all categories. Of the approximately 1,700 units, 725 are dedicated to very low income households, 719 to low income, and 308 for moderate income households. Seniors occupy just over 700 of the units and nearly 500 units are occupied by households with children under the age of 21. Additionally, almost half of the total units are maintained by a female head of household. Mr. Ceja reported Mrs. Gonzales and he conducted thorough research and review of the other cities valley-wide to see how Palm Desert compares. Results for Palm Desert indicated there are approximately 2 people per household with 1.14 jobs available per household. While not quite at the 1.5 ratio that is advocated for, Palm Desert is doing better than most cities in the Coachella Valley. Councilmember Kelly, commented the large number of retirees in the Coachella Valley influences the overall numbers. There is an expectation of fewer jobs per household as a consequence of the retiree population occupying so many homes. Discussions amongst the subcommittee members have observed that Palm Desert is the employment center of the Coachella Valley therefore, efforts should be made to ensure there is sufficient housing to support the employees in Palm Desert. Mr. Ceja reported approximately 4.5% of Palm Deserts housing stock is dedicated to affordable housing. Mrs. Gonzales and he did extensive research to determine what other affordable housing policy options are available around the state. There have been a number of changes at the State level in the last two years including 18 new housing laws passed in 2018 and 19 new housing laws passed in 2019. These new laws include items which would streamline the process for development. Permits will still be required for projects such as building an accessory dwelling unit or a new addition to a home, however, the City would be limited with its ability to deny the development of these types of structures. Additionally, there are new California Environmental Quality Act(CEQA) clearances and guidelines related to housing that have been implemented to assist with expediting the development of housing with the State. Their research also revealed many cities were creating an affordable housing overlay district, which is the policy before the commission. Other cities fee schedules were also 3 PRELIMINARY MINUTES PALM DESERT HOUSING COMMISSION JANUARY 8, 2020 reviewed. Staff had considered the possibility of a no net fee, which would allow fees to essentially stay the same, however, a portion would be allocated to affordable housing. At the policy committee level it was not recommended to move forward with this alternative, though, this is still an option which may be considered in the future. There has also been discussion regarding the need to identify Housing Authority properties and taking a more assertive approach to market these properties for development. With the release of the new RHNA numbers staff will need to be strategic with how these properties are released and developed. In larger cities, an inclusionary housing ordinance has been implemented which requires developers to set aside a portion of that development for affordable housing. This policy has received mixed reviews and is not currently in practice within the Coachella Valley, therefore, it is not an option being entertained at this time. Mr. Ceja referenced the current Housing Overlay District policy~ m re the commission, stating its intent is to incentivize affordable housing units. This poli uld be voluntary and would be applied to properties that have been identified in the City ,using element as well as Housing Authority properties. This is an optional standard, sho`' developer choose to allocate 20% of the units within their housing project as income restricted units, they are eligible for the incentives offered in the policy. Commission Buller inquired as to the origin of the incentives being proposed in the policy, did staff receive feedback or input from the development community or are they from other city policies. In reply, Mr. Ceja stated initially, City staff met exhaustively with the Building Industry Association, Desert Valley Builders Association, Coachella Valley Housing Coalition and other affordable housing developers to get a better understanding of what impedes their ability to develop affordable housing. What staff learned was that requiring certain items can make it difficult for developers to finance their projects, however, they approved of an option to have incentive standards available to them. Additionally, staff reviewed other cities who had overlay district policies, finding the majority offered development standard flexibility, some type of expedited process through the City, and a density bonus. Staff is hoping there are enough incentives within this policy to entice developers to provide affordable housing units as part of their project. Chair Mireles observed the identified properties for the overlay district are all north of Fred Waring and asked if there was a reason for this. Mr. Ceja replied the identified properties are already part of the established housing element and others are already owned by the Housing Authority, making these ideal areas to slowly start the implementation of this policy. He noted this policy could be applied to additional areas in the future. Councilmember Kelly added the City is trying to avoid over populating areas and drastically altering the character of established neighborhoods without community input and public hearing. These properties have already been identified as very suitable for this kind of development. 4 PRELIMINARY MINUTES PALM DESERT HOUSING COMMISSION JANUARY 8, 2020 Vice Chair Ballard asserted the issue seems to be the percentage of loss to property values. In reply, Councilmember Kelly stated the issue is lifestyle as well as property value, adding many people have moved to the area because they want to escape urban density. Vice Chair Ballard commented there are a number of different things that will rely on the success of this program. He noted they will need to adapt new standards of appraisal for example, adding he can see many positive and negative aspects to this program. He stated one of the issues his client has come up against is the community's unwillingness to have affordable housing in their area.Vice Chair Ballard expressed it will be a challenge to present this program in a positive light, and felt it should be taken to the real estate community to see how this will affect them. He stated he fee he overlay is a great idea and agrees with the recommended policy. Director of Community Development Ryan SterQ reed that the ay of this policy will not be easy, however, it is a good toward the future o is housing. Vice Chair Ballard inquired about the pos of appro ing the Marn dding they have the land and the means to build. Councilmember Kelly asserted affordable housing requires extensive expertise because the funding sources are varied and complex, it is a specialty. There are entities with this specialty in the Coachella Valley, and many more reso *!' Ou tside of our area which we may be able to entice to the City. It would be difficult vince entities that do not already possess an expert on staff to take this opportunity. It would a greater prospect for success to identify and entice entities that are already involved in the affordable housing industry within the surrounding vicinity. Mrs. Gonzales explained this policy is intended for communities being developed that would not have 100 percent affordability provided as part of that community. This policy is meant to encourage private developers, who did not plan otherwise, to include 20% of their units as affordable housing, so they can take advantage of the incentives which come along with this inclusion. Chair Mireles expressed concerned regarding the designated areas being concentration in one area adding he would like to see it spread more throughout the City. Councilmember Kelly commented that our current affordable housing communities are located throughout the City. The area designated in the overlay district are where the City has the most vacant land available for development. This proposed area currently has housing communities like Genesis, already developed and the allocated areas for affordable housing are approximately 25% of the overlay district, so a noticeable concentration of these developments are avoided. Mrs. Gonzales reiterated that the developments would not be one hundred percent affordable, it would be 20% of the units in any given development which would prevent a concentration of affordable households. Additionally, since these areas are vacant land they provide the best opportunity for developers to take advantage of the density bonus 5 PRELIMINARY MINUTES PALM DESERT HOUSING COMMISSION JANUARY 8, 2020 and other offered incentives, which in turn allows the City to yield a greater number of affordable units. Commissioner Buller observed some of the incentives and strategies mentioned in the housing overlay district were items that were negotiated with the developer for the Sands project. In reply, Mr. Ceja stated this was correct, adding the State already allows a density bonus and notes the number of concessions a City should offer. The overlay district policy uses some of those density provisions and further defines the incentives which would be available as a standard to any developer who chooses it as an option. Upon inquiry by Commission Buller, Mr. Stendell stated the map provided is part of the General Plan adding the designated overlay district areas are zone as planned residential. Chair Mireles commended the City for being aggressive about a\Gu e issue of affordable housing. Upon a motion by Vice-Chair Ballard, second by Commissioand a 6-0 vote of the Housing Commission the Consent Calendar was apresented (AYES: Ault, Buller, Ballard, Guinaw, Mireles, and Morrison; NOES: None; ABSENT: None). VI. CONTINUED BUSINESS None VII. OLD BUSINESS None VII1. REPO CO mission embers arks and Requests Airs. Gonzales intced s member, Chris Gerry, commenting she invited him to the meeting so that he can provide more detailed information on the City's efforts to help the homelessness in our community. Management Analyst, Chris Gerry, gave a brief introduction of himself. Mr. Gerry informed the City has a local homeless outreach program which includes two Riverside County workers dedicated to the City of Palm Desert. These county staff workers are contracted through Riverside University Health Systems, which is part of their mental health department. They work in our community essentially full time and drive throughout the community in a County vehicle looking for individuals who are homeless. Mr. Gerry stated those in homeless advocacy have found that continual relationship building with homeless individuals builds trust which allows the workers to help them with their current situation and the eventual goal of participation in the Housing First model program. Initial contact by the workers with the homeless in the community will normally include a conversation and an offer of water, coffee, help and 6 Palm Desert-Housing Authority Rental Project Name Address No.of Units Income Category Unit Types Owner Taos Palms 44830 Las Palmas Avenue 16 VL/Low/Mod. Rental-Multi Family PDHA Santa Rosa Apt. 73625 Santa Rosa Way 20 VL/Low Rental-Multi Family PDHA Neighbors Apt. 73535 Santa Rosa Way 24 VL/Low/Mod. Rental-Multi Family PDHA Palm Village Apt. 73650 Santa Rosa Way 36 VL/Low Rental-Multi Family PDHA Laguna Palms Apt. 73875 Santa Rosa Way 48 VL/Low/Mod. Rental-Multi Family PDHA Desert Pointe Apt. 43805 Monterey Avenue 64 VL/Low/Mod. Rental-Multi Family PDHA California Villas 77107 California Drive 141 VL/Low/Mod. Rental-Multi Family PDHA One Quail Place 72600 Fred Waring Drive 384 VL/Low/Mod. Rental-Multi Family PDHA Sagecrest Senior Apt. 73811 Santa Rosa Way 14 VL/Low/Mod. Rental-Senior PDHA The Pueblos 73695 Santa Rosa Way 15 VL/Low/Mod. Rental-Senior PDHA La Rocca Villas 42135 Golden Eagle Lane 27 VL/Low Rental-Senior PDHA Candlewood Apt. 74000 Shadow Mountain Drive 30 VL/Low/Mod. Rental-Senior PDHA Catalina Gardens 73600 Catalina Way 72 VL/Low/Mod. Rental-Senior PDHA Carlos Ortega Villas 77915 Avenue of the States 72 VL/Low Rental-Senior PDHA Las Serenas Apt. 73315 Country Club Drive 150 VL/Low/Mod. Rental-Senior PDHA Total 1113 Sub Types Total by Unit Type %of Total Rental-Senior 380 34.1% Rental-Multi Family 733 65.9% VL/Low 155 13.9% Very Low/Low/Mod. 958 86.1% Low/Moderate 306 27.5% Palm Desert-Rental Developer Provided Project Name Address No.of Units Income Category Unit Types Owner Atria Palm Desert 44300 San Pascual Avenue 5 Very Low Assisted Living Private Legend Gardens 73685 Catalina Way 10 VL/Low Assisted Living Private Care],Lee and Sandra Apt. 73735 Santa Rosa Way 1 Low Rental-Multi Family Private River Run One 44555 San Rafael Avenue 2 VL/Low Rental-Multi Family Private Canterra Apt. 74401 Hovley Lane East 31 Low Rental-Multi Family Private Vineyards Apt. 37600 College Drive 52 Moderate Rental-Multi Family Private The Enclave 35751 Gateway Drive 64 Moderate Rental-Multi Family Private Hovley Gardens 7450142nd Avenue 162 Very Low Rental-Multi Family Private Catalina Apt. 73582 Catalina Way 4 L/Mod Rental-Senior Private Catalina Isle Apt. 73625 Catalina Way 4 Low Rental-Senior Private Villas on the Green 77120 California Avenue 15 L/Mod Rental-Senior Private Total 350 *Assisted Living is counted as beds,or 2 beds per unit Sub Types Total by Unit Type %of Total 15 1463 Rental-Assisted Living 15 4.3% 403 Rental-Senior 23 6.6% 1045 Rental-Multi Family 312 89.1% Very Low 167 47.7% VL/Low 12 3.4% Low 36 10.3% Low/Moderate 19 5.4% Moderate 116 33.1% CITY OF PALM DESERT HOUSING COMMISSION REPORT SUBJECT: Housing Overlay District SUBMITTED BY: Eric Ceja, Principal Planner Jessica Gonzales, Senior Management Analyst DATE: January 8, 2020 On January 10, 2019, the City Council appointed Councilmembers Harnik and Kelly to an ad hoc "Affordable Housing Policy Subcommittee." The subcommittee was formed to work with City staff and to: - Review existing City housing policies - Review existing policies from around the State - Explore affordable housing policy options for the City - Perform a comparative analysis of affordable housing with other Coachella Valley cities Staff initially spent months gathering and compiling information needed for an educated and thoughtful discussion on housing policy and presented the findings at a subcommittee meeting in May 2019. Committee members initially favored incentive based policy options. Based on committee member feedback, and research of other cities, staff presented a draft "Housing Overlay District" in an open forum on October 24, 2019. Feedback was limited, but those in attendance supported the City's efforts to move forward with an Overlay District to incent new affordable housing development. The attached "Housing Overlay" district provides a framework to incentivize the development of affordable housing units in the City. The Overlay provides optional standards and incentives for housing projects that provide a minimum of 20% of units as income-restricted. In exchange for providing 20% affordable units, the overlay provides the following for projects that conform to the development standards of the base zone: • No public hearing; only a review with the City's Architectural Review Commission • Allows for a density bonus consistent with State Law • Provides a reduced parking requirement • Potential waiver of City Development Impact Fees At this time, the Overlay Zone will only be applied to properties identified in the City's Housing Element and Housing Authority controlled parcels. A map indicating these properties, as well as a draft of the Housing Overlay District, are provided with this memo. 25.28.020 Housing Overlay District(DMA A.Intent.The intent of overlay district is to incentivize the development of affordable housing units in the City of Palm Desert. B. Purpose and applicability.The purpose of the Housing Overlay District (HOD) is to provide optional standards and incentives for the development of a wide variety of housing developments which provide a minimum of 20% of all units dedicated as income-restricted. The overlay zone is generally applied to properties identified in the City's Housing Element and Housing Authority owned properties as shown in Figure 25.28-1. Wherever the HOD has been added to a base zone, the applicant may choose whether to use the optional HOD standards and/or the standards of the base zone. C. Uses permitted by approved precise plan and conditional use permit.Uses permitted or conditionally permitted in the R-2 and PR zoning districts may be approved through an Architectural Review application process. Housing types applicable to the HOD include, but areinot limited to, single-family detached/attached, duplex units,and multi-family development, either for rent or sale. D.Development standards.Development standards shall be flexible to ensure efficient site planning and neighborhood compatibility and to reflect the unique requirements of integrating income- restricted units into market-rate housing developments. Flexibility to the base zone development standards may be utilized as part of the design review of an Architectural Review application.Design guidance contained in Section 25.20 "Downtown District Design Guidelines" and within the University Neighborhood Specific Plan shall be followed. E.Affordable Housing Requirement.To be eligible for the provisions of this chapter,rental housing development within the HOD shall provide a minimum of twenty percent (20%) of all units within the project at income-restricted rents, or at least one (1) unit for smaller residential projects. All fractional units shall be rounded up to the next whole number. F.Density and intensity. Project densities are established in the Zoning Ordinance and on the Zoning Map. Any mixed-use and residential project under this Chapter is eligible for a density bonus as allowed under State law.Formulas for density bonuses are contained in Palm Desert Municipal Code Chapter 25.34.040. 1. Unit sizes.Minimum allowable unit sizes in square feet(sf)shall vary according to presence or absence of a common project amenities.Each unit shall contain,as a minimum,a kitchen including 2 burners, an oven,a refrigerator/freezer, a sink,counter space,and storage. G. Parking requirement. 1. Parking ratios based on bedroom count shall be calculated as follows: Table 25.28-1: Parking Required for Housing Overlay Bedroom Count Parking Ratio Studio/1 Bedroom 1.50 per unit 2—3 Bedrooms 2.00 per unit H. Development Impact Fees:Any mixed-use or residential project eligible under the overlay district may be subject to a fee waivers of City fees for all income-restricted units including plan check and inspection fees.The remainder of the project may be eligible for a reduction in fees if funding sources are available with the City's Affordable Housing funds. •`�irrrrrrr ' Jur nne uuu••/ (� • •u O�Fin ♦i, rinlllfrr unv a �u1 v nuu nil�� :iii ]`,ill ►,, it r�r' uiii• • lu. i rvi11111■ �iC o II�'I`fI l �' rr 11 1164 Cri iiii �_ :; � L�rn u•.1. �I1� ueui~tl �:ilil=.� " ' ��►.�'•I'r•♦ :.� t f 1 I•_•.� �:ai uq .uo uql nit li I : � =ull r i i 1 � .. .xi,••�..1 .nnn- null nn .u• f n.,.• _ 1►_.6 ►i�llt��1..,1.�rniwn'.S�n/���1�iurI41P. •url .i 1�1111.•.1�1 rlluo '^ `� �. /�, �IIIIII Illllllil I111111 11111111I ■ illy 1 ► Q 1 ._ � �. 1 IIIII 111 .� Irltll I1111111 �: III/III/IIIII • �, 1 rlrx.r.•.r.r.. . � Pull ": �:r =ei � ' I °' a E��� 00•''0=i:;�==`'-" ��r _��►�m mom ...� .� ( I'Q1�.•(�,�! n� :r III'' al ♦ -tr �, '�� •I �~ ' INKS IIIII ..11�,1,•. 1.r.;. 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CIT Y 0 [ P H L M O ESERI 73-5io FRED WARING DRIVE PALM DESERT, CALIFORNIA 92260-2578 TEL: 76o 346—o6>> FAx: 76o 341-7098 info@palm-desert.org CITY OF PALM DESERT LEGAL NOTICE CASE NO. ZOA 19-0004 NOTICE OF INTENT OF THE PALM DESERT PLANNING COMMISSION TO APPROVE A RESOLUTION RECOMMENDING APPROVAL TO THE CITY COUNCIL OF A ZONING ORDINANCE AMENDMENT TO ESTABLISH A HOUSING OVERLAY DISTRICT AND TO APPLY THE OVERLAY DISTRICT TO HOUSING AUTHORITY PROPERTIES AND PROPERTIES IDENTIFIED IN THE CITY'S HOUSING ELEMENT; AND ADOPT A NOTICE OF EXEMPTION UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT The City of Palm Desert (City), in its capacity as the Lead Agency under the California Environmental Quality Act (CEQA), has determined that this Zoning Ordinance Amendment (ZOA) is exempt from CEQA review pursuant to Section 15060(c)2 in that the proposed action will not result in a direct or reasonably foreseeable indirect physical change in the environment, and Section 15061(b)3 in that the ZOA to establish the overlay zone will not result in a direct impact to the built environment, and that specific projects within the overlay zone will be evaluated in accordance with CEQA when a development application is filled. Therefore, the Director of Community Development is recommending that the Planning Commission adopt a Notice of Exemption under the CEQA guidelines. Project Location: The Housing Overlay District (HOD) is intended to be applied to the following parcels as identified by Assessor Parcel Numbers: 622-370-014, 627-122-013, 685-010-005, 694-120-028, 694-130-017, 694-130-021, 694-190-087, 694-200-014, 694-200-024, 694-310- 006, 694-510-001, and 694-510-013. Code Amendment Description: The HOD is intended to incentivize the development of affordable housing units in the City by providing optional development incentives. By opting to utilize the HOD, property owners agree to provide 20% of all housing units at affordable rents. In doing so, the property owner is eligible for flexible development standards, density bonuses in accordance with State law, reduced parking ratios, expedited application processing, and potential waiver of certain development impact fees. Recommendation: Staff is recommending that the Planning Commission adopt a resolution supporting the changes to the Zoning Ordinance, and allow the item to move forward to a public hearing with the City Council. Public Hearing: The public hearing will be held before the Planning Commission on February 4, 2020, at 6:00 pm. Comment Period: Based on the time limits defined by CEQA, your response should be sent at the earliest possible date. The public comment period for this project is from January 25, 2020, to February 4, 2020. Public Review: The ZOA is available for public review Monday through Friday from 8:00 a.m. to 5:00 p.m. at City Hall. Please submit written comments to the Planning Department. If any group challenges the action in court, the issues raised may be limited to only those issues raised at the public hearing described in this notice or in written correspondence at, or prior to the Planning Commission hearing. All comments and any questions should be directed to: Eric Ceja, Principal Planner City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 I CITY OF PALM DESERT COMMUNITY DEVELOPMENT DEPARTMENT INTEROFFICE MEMORANDUM To: Andy Firestine, Assistant City Manager From: Ryan Stendell, Director of Community Development, Date: January 9, 2020 Subject: Update: Affordable Housing Policy Subcommittee At the City Council meeting of September 26, 2019, Community Development staff provided a memo with an update of the work performed by the Affordable Housing Policy Subcommittee. The memo stated that a "draft Affordable Housing Overlay District" would be prepared with the intent to "incent affordability rather than require" it. The memo also stated that a public forum to review staff's findings for affordable housing in the Coachella Valley would be held in October. On October 24, 2019, Community Development staff hosted a public forum to review the draft Overlay District and findings related to affordable housing in the Coachella Valley. Feedback was limited but those in attendance supported the City's efforts to move forward with an Overlay District to incent new affordable housing development. As such, staff is prepared to move the Overlay District forward to public hearings. Below is a tentative schedule for public hearings: • City's Housing Commission on January 8, 2020 • City's Planning Commission on January 21 , 2020 • City Council on February 13, 2020 At the meeting on February 13, 2020, staff anticipates providing a robust presentation related to affordable housing in the City as well as presenting the Housing Overlay for City Council consideration. cc: Eric Ceja, Principal Planner Jessica Gonzales, Senior Management Analyst