FROM:
Planning Department
TITLE:
Title
Request for approval of an Affordable Housing Density Bonus Agreement and Declaration of Covenants, Conditions & Restrictions, pursuant to California Government Code § 65915 and Fontana Municipal Code § 30-344, as required by condition No. 12 of the previously adopted Conditions of Approval for Master Case No. 22-128, Tentative Tract Map 22-008 (Tract No. 20580) and Design Review No. 22-059, pursuant to Section 15162 and 15183 of the California Environmental Quality Act.
End
RECOMMENDATION:
Based on the information in the staff report and subject to the attached findings and conditions of approval, staff recommends that the Planning Commission adopt Resolution PC No. 2024-053; and,
1. Find that approval of the Affordable Housing Density Bonus Agreement and Declaration of Covenants, Conditions & Restrictions is not a "project" under Public Resources Code § 21166 of the California Environmental Quality Act (Pub. Res. Code § 21000 et seq. (“CEQA”) and CEQA Guidelines 15378, because it will not cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, and, as such no environmental review is required. Any and all environmental review for the underlying project was completed by the previously adopted Environmental Impact Report (State Clearinghouse No. 2016021099) approved on November 13, 2018 which has adequately identified the impacts associated with the project. Thus, no further review is required pursuant to Section 15162 and 15183 of the California Environmental Quality Act and Section 8.10 of the 2019 Local Guidelines for Implementing CEQA, and staff is directed to file a Notice of Exemption; and,
2. Approve the "Affordable Housing Density Bonus Agreement and Declaration of Covenants, Conditions & Restrictions," which will impose affordability requirements on four (4) of the forty eight (48) total units in the project.
3. Approve a Subordination Agreement, which provides that the Affordable Housing Density Bonus Agreement and Declaration of Covenants, Conditions & Restrictions will have priority over an existing construction loan for the project.
APPLICANT:
Matt Livingston
550 North Larchment Blvd., Ste. 201
Los Angeles, CA 90004
LOCATION:
The project site is located 6584 Citrus Avenue (APN:0228-301-50), on approximately 6.8 acres.
REQUEST:
Approval of the Affordable Housing Density Bonus Agreement and Declaration of Covenants, Conditions & Restrictions
PROJECT PLANNER:
Alejandro Rico, Associate Planner
BACKGROUND INFORMATION:
A. Land Use Designations:
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General Plan Designation |
Zoning District |
Existing Land Use |
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Site: |
Single Family Residential (R-SF) |
Single Family (R-1) |
Vacant Lot |
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North: |
Single Family Residential (R-SF) |
Single Family (R-1) |
Single-Family Residences |
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South: |
Single Family Residential (R-SF) |
Providence Point |
Single-Family Residences |
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East: |
Single Family Residential (R-SF) |
Single Family (R-1) |
Single-Family Residences |
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West: |
Residential Planned Community (R-PC) |
Rancho Fontana Specific Plan |
Single-Family Residences |
B Previous Approvals:
1. On November 13, 2018, the City Council approved the General Plan Environmental Impact Report (EIR).
2. On September 5, 2023, the City Council approved Master Case No. 22-128 / Tentative Tract Map 20580 (TTM No. 22-008) and Design Review Permit 22-059 (collectively, the “Permit”) and issued Conditions of Approval.
PROJECT DESCRIPTION:
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A. Project Area: |
Approximately 6.8 acres |
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B. Building Analysis: |
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Plan 1: |
3 bedrooms, 2.5 bathrooms |
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Plan 2: |
3 bedrooms, 2.5 bathrooms |
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Plan 3: |
3 bedrooms, 2.5 bathrooms |
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C. Park Analysis: |
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Single-Family Homes: |
Two Garage Spaces per 48 units |
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Public Parking: |
50 spaces |
ANALYSIS:
The applicant, Matt Livingston on behalf of RC Homes, Inc., requests that the Planning Commission review and approve an Affordable Housing Density Bonus Agreement and Declaration of Covenants, Conditions & Restrictions ("Regulatory Agreement"), which will satisfy Condition of Approval No. 12, as previously approved by the Planning Commission on September 5, 2023, for a project to construct forty-eight (48) detached single-family units and recreation area. The proposed single-family units range in size from 1,582 square feet to 1,652 square feet and will be constructed within the Single Family (R-1) District. Pursuant to the Regulatory Agreement, four (4) of the units will be restricted for rental or for sale to very low income household.
Summary of Regulatory Agreement:
The proposed Regulatory Agreement would restrict the use of four (4) units (the "Affordable Units") by requiring that they are rented or sold to very low income households, which is defined to mean households with income that does not exceed fifty percent (50%) of the Area Median Income for San Bernardino County.
The applicant has requested flexibility to make an election as to whether the Affordable Units will be rentals or for-sale units. The Regulatory Agreement provides that the Affordable Units will be rented for a term of 55 years for an "Affordable Rent," which is defined as not more than thirty percent (30%) of fifty percent (50%) of Area Median Income.
However, prior to issuance of a Certificate of Occupancy, the Regulatory Agreement allows the project owner to elect to make the Affordable Units available on a for-sale basis to Very Low Income Households, in which event the Affordable Units would be sold at a below-market sales price and the City would be entitled to an "equity share" in the appreciation of the value of the Affordable Unit. Pursuant to the equity share provisions, when the Affordable Unit is re-sold by the initial buyer, the City would be entitled to share in the appreciate of the Affordable Unit. The term of the restrictions if the Affordable Units are made for-sale is 45 years.
The Regulatory Agreement includes obligations for income verification, preparing of a marketing plan, a right of the City to make referrals for the Affordable Units, and other terms related to ensuring the covenants for the Affordable Units.
Subordination Agreement:
The purpose of the Subordination Agreement is to ensure the affordability covenants set forth in the Regulatory Agreement. The Subordination Agreement is an agreement by the construction lender that the Regulatory Agreement would remain an encumbrance on the project in the event that the construction lender had to foreclose.
Project Background:
Design Review:
The Planning Commission previously approved the design review for a variety of architectural styles for the residential units. These styles include Spanish, Cottage, Ranch, Bungalow and Farmhouse styles. Architectural enhancements range from thick window trimming, banding, siding, carriage lights, accent colors, recessed windows and decorative metal fixtures. Entries to the units are located on the sides of the units to create paseos leading to the front door and backyard areas. Landscaping has been incorporated into the design with trees, shrubs and ground cover.
As part of this project, the applicant is agreeing to restrict four (4) affordable units per the State’s Density Bonus Law (California Government Code Sections 65915 - 65918). Under State law, the applicant is proposing four Very Low Affordable units which would allow the applicant to increase the density of the project area by 35%. Currently, the Zoning Code would allow development at five (5) units per acre which would allow thirty-five (35) single-family units on the site. However, the State Density bonus would allow an additional thirteen (13) units for a total of forty-eight (48) single-family units. The Density Bonus Law prohibits local jurisdiction from enforcing Zoning Requirements that would prevent this density from being reached such as lot size square footage minimums, lot size dimension minimums and building setback minimum requirements. The applicant is also allowed selected incentives; for this project, the applicant is selecting relief from the provision of block walls between the lots and is instead using vinyl fencing. Block walls are being used for areas adjacent to the common areas such as the driveway and roadway areas.
A recreation area is proposed on the southeast corner of the project site. The amenity includes an eighteen by forty foot pool, lawn chairs, gazebos, barbeque area and fitness room.
Grading/Walls
The existing site is vacant and undeveloped, and there is an existing block wall along the west, north and east of the project site. The applicant is proposing to utilize the existing walls as a combination retaining wall and block wall adjacent to the existing single-family tracts. The Zoning Code allows a nine (9) foot high combination wall with the six (6) foot height limit maximum on the high side. The grading plans show that the project is within these limits which will limit the wall height and provide adequate screening of adjacent backyards.
Circulation and Access
Access to the area is proposed from Chase Road to the south and Cascade Drive to the north portion of the site. Chase Road leads to Citrus Avenue which is a Primary Highway. Cascade Drive currently dead ends along the east and west of the site. This project will connect Cascade Road and allow access to and from the site to Baseline Boulevard, a Primary Highway, to the south.
Environmental
Pursuant to the Initial Student (IS) prepared for the General Plan, a Final EIR (SCH No. 2016021099) was prepared for the project and was certified by the City Council on November 13, 2018. Based on CEQA Guidelines, Sections 15162 through 15164 et seq, and Section 8.10 of the City of Fontana’s 2019 Local CEQA Guidelines, staff has determined that the previously certified Final EIR has adequately identified the impacts associated with Design Review No. 22-055. The applicant conducted technical studies indicating that there will be no project specific mitigations required or impacts not addressed in the EIR per the CEQA checklist. Staff recommends that a Notice of Determination be filed accordingly. The Final EIR for the General Plan can be viewed at the following link: <https://www.fontanaca.gov/2137/Environmental-Documents>.
The Regulatory Agreement is being approved in compliance with the State Density Bonus Law (California Government Code Section 65915 et seq.) and the City’s implementing ordinance (Fontana Municipal Code Section 32-344). The Regulatory Agreement concerns rental rate restrictions and impact fee reimbursements and so, pursuant to Public Resources Code § 21166 of the California Environmental Quality Act (Pub. Res. Code § 21000 et seq. (“CEQA”) and CEQA Guidelines 15378, the Regulatory Agreement is not a “project” within the meaning of CEQA as it will not cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, and, as such no environmental review is required. City staff is directed to file a notice of exemption.
MOTION:
Approve staff’s recommendation.
ATTACHMENTS:
1. Vicinity Map
2. Project Plans
3. Original Project Planning Commission Resolution and Conditions of Approval
4. Planning Commission Resolution Approving the Affordable Housing Density Bonus Agreement and Declaration of Covenants, Conditions & Restrictions and Subordination Agreement
5. Affordable Housing Density Bonus Agreement and Declaration of Covenants, Conditions & Restrictions
6. Subordination Agreement
7. Notice of Exemption