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Home My WebLink AboutOrdinance 1352 and 1353 ZOA-CZ 19-0004 - Medium-High Density Housing Overlay DistrictSTAFF 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 Districf' 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. i i5i , 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. Strateqic 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 Analvsis 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. Proiect 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'1Planning\Eric Cela\Case Fdes\ZOA\ZOA 19-0004 Housing Overlay\CC\CC Staff 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 ). GAPlanning\Eric Cela\Case Files\ZOA\ZOA 19-0004 Housing Overlay\CC\CC Staff Report (2 27 20).doc February 27, 2020 — Staff Report ZOA 19-0004: Housing Overlay District Page 4 of 5 CITY 100') auTHORITr nrrww � L AL1THORITY 3� PALM DESERT GENERAL PLAN + HOUSING ELEMENT IJ Cx..•ev�5w.nn wp E.^yo.•m.n ! ` wmf R.•s :.r i.r 0 c�ce... cR.w. r.,r.e�n ! P� ....a,. ! w .u. - • 'il - Srr Te. n Npbyr.•p� - R.aa� a [.un�n+r,� Medium/Nigh-Density Housing Overlay District. The MHD❑ was established in 2013 as part of the comprehensive Zoning Ordinance Update. The purpose of the MHD❑ 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. GAP lannOMEric CejalCase F i le s2OffiZOA 19.0004 Housing OverlaylC=G Stall Raporl. (2.27.20).doc February 27, 2020 — Staff Report ZOA 19-0004: Housing Overlay District Page 5of5 Findinqs 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 1-15-1 , attached to this staff report. LEGAL REVIEW DEPT. REVIEW FINANCIAL ASSISTANT CITY REVIEW MANAGER I-A4wll u r N/A Robert . r6aves Ryan Stendell, Director of Janet Moore An=�iresinc City Attorney Community Development Director of Finance A is; s nt City Manager City Manager, Lauri Aylaian: ATTACHMENTS: 1. Draft City Council Ordinance No. 1352 2. Draft City Council Ordinance No. 1353 _ 2. Planning Commission Resolution No. 2772 & 2773 3. Planning Commission DRAFT Minutes February -4 ;, 2020 4. Housing Commission Minutes of January 8, 2020 5. City Council Public Hearing Notice 6. CEQA Notice of Exemption G \Planning\Eric Ceja\Case Files\ZOA\ZOA 19-0004 Housing Overlay\CC\CC Staff 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 271h 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 27th day of Februarv, 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 Ftles1ZOA\Z0A 19-0004 Housing Oveday\CC\ZOA 19-0004 CC Ord - HOD.doc 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 \Plannmg\Enc Cele\Case Fi1es2OAIZOA 19-0004 Housing Overlay\CC\ZOA 19-0004 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\Eric Ceja\Case Files\ZOA\ZOA 19-0004 Housing Overlay\CC\ZOA 19-0004 CC Ord - HOD.doc ORDINANCE NO. i 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 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 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 271h 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 Februarv. 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\Eno Ceja\Case Files\ZOA\ZOA 19-0004 Housing Oveday\CC\ZOA 19-0004 CC Ord - Parcels.doc a D t,- 4.02M 1 .... .. .. .. lop, 44 NO ............. - p T C 4 �z i rm-3�A 0 Y±lm L-0 II I I I I I T" 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 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 MediurnlHigh-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 Ouality 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, CaRomia, at its regular meeting held on the 41" day of February 2020, by the following vote, to wit: AYES: GREENWOOD, GREGORY, HOLT, and PRADETTO NOES: NONE ABSENT: DE LUNA ABSTAIN: NONE 1 �7 Llt4DSAYHOLT, C AIR' ATTEST: V-�* RYAN STENDELL, SECRETARY PALM DESERT PLANNING COMMISSION 2 1 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 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 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. f 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, 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 I LID'AY HOLT, CH4AJ ATTEST: T-Z� RYAN STENDELL, SECRETARY PALM DESERT PLANNING COMMISSION 2 PLANNING COMMISSION RESOLUTION NO. 2773 EXHIBIT A - Open Spa( Conventioi Rural Neig Golf Cours Small Tows - Town Cent - Employme - Industrial - Public Fac Resort & E - Regional R - Suburban - Neighborbi - Downtown City of Palm Desert Case No. ZOA 19-0004 PLANNING COMMISSION RESOLUTION NO. 2773 Da te: 214/2020 9 PRELIMINARY 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, Halt, 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 awned by the Housing Authority. Case No. ZOA 19-0004 (City of Palm Desert. Apolicantl. 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. 101 PRELIMINARY MINUTES PALM DESERT PLANNING COMMISSION FEBRUARY 4, 202❑ 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 testlmony 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, N ADJOURNED MINUTES PALM DESERT HOUSING COMMISSION V. NEW BUSINESS JANUARY 8, 2020 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 subcommittee is recommending a zoning ordinance amendment which establishes a Housing 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 staff research the possibility of devising a standard policy for incentives offered to interested developers, 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 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. Il 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 VI1. 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 X 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 Countyof: Riverside 1. Project Title: 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: - -- - -- 1 City of Palm Desert Citywide Zoning Ordinance Amendment applied to: 3. Project Location — Identify street address and 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, 694-200- map identified by quadrangle name): 014, 694-200-024, 694-510-001, & 694-510-013 4. (a) Project Location — City: Palm Desert (b) Project Location — County: Riverside 5. Description of nature, purpose, and beneficiaries 1 The City of Palm Desert wishes to establish an overlay of Project: district to incent the construction of affordable housing j 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 receiving a lease, permit, license, certificate, or other entitlement of use from the Public Agency as part of the activity: 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. (e) ❑ Declared Emergency. (Pub. Res. Code § 21080(b)(3); State CEQA Guidelines § j 15269(a)) (f) ❑ Statutory Exemption. State Code section number: J (g) ❑ Other. Explanation: 9. Reason why project was exempt: Notice of Exemption Project is consistent with the City's general plan and the overlay district will not have an immediate or negative FORM " B" 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: Eric Ceja, Principal Planner Telephone- — — — — — — � (760) 346-0611 — -- — — — — — -- - If. 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 yes, 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 21 152.1, Public Resources Code. Notice of Exemption FORM "B" 73-510 FRI:D WARING DRIVE. PAL.m DESERT, CALIFORNIA 92260-2578 TEL:76o 346—o6ii FAX: 760 341-7098 into(d 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 (760) 346-0611, Extension 384 eceja@cityofpalmdesert.org PUBLISH: DESERT SUN RYAN STENDELL, Secretary JANUARY 25, 2020 Palm Desert Planning Commission