FROM:
Planning Department
TITLE:
Title
Consideration of a resolution pursuant to the adopted Courtplace Mitigated Negative Declaration making General Plan conformance findings under Government Code section 65402 regarding the sale of 1.94 acres of unimproved land located on the west side of Sierra Avenue between Santa Ana Avenue to the north and Jurupa Avenue to the south) for the development of a 50 unit affordable rental housing project.
End
RECOMMENDATION:
Staff recommends that the Planning Commission consider the location, purpose, and extent of the proposed real property disposition described herein as required under Government Code Section 65402(a) and adopt Resolution No. PC 2025- entitled: “A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF FONTANA, CALIFORNIA, MAKING, PURSUANT TO THE ADOPTED COURTPLACE MITIGATED NEGATIVE DECLARATION, GENERAL PLAN CONFORMANCE FINDINGS UNDER GOVERNMENT CODE SECTION 65402 REGARDING THE SALE OF 1.94 ACRES OF CITY-OWNED UNIMPROVED PROPERTY LOCATED ON SIERRA AVENUE, BETWEEN SANTA ANA AVENUE TO THE NORTH AND JURUPA AVENUE TO THE SOUTH (A PORTION OF ASSESSOR PARCEL NUMBERS 0255-101-22-0-000 AND 0255-101-23-0-000)” finding that the proposed disposition is in conformance with the City’s General Plan and direct staff to file a Notice of Determination.
APPLICANT:
City of Fontana
8353 Sierra Avenue
Fontana, CA 92335
LOCATION:
West side of Sierra Avenue between Santa Ana Avenue and Jurupa Avenue (a portion of Assessor Parcel Numbers 0255-101-22-0-000 AND 0255-101-23-0-000”
REQUEST:
Determination by the Planning Commission that the disposition of the property described herein is in conformance with the goals and policies of the City of Fontana General Plan.
PROJECT PLANNER:
Patty Nevins, Director of Planning
BACKGROUND INFORMATION:
The City of Fontana (“City”) owns certain real property consisting of 1.94 acres of unimproved land located on Sierra Avenue, between Santa Ana Avenue to the north and Jurupa Avenue to the south (a portion of assessor parcel numbers 0255-101-22-0-000 and 0255-101-23-0-000) (“Property”). Fontana Courtplace I Housing Partners, L.P., a California limited partnership (“Developer”), desires to acquire and develop the Property with a 50 unit affordable family-apartment housing project (“Project”).
Prior Approvals and Actions
In 2023, the Developer, the City, and the Fontana Housing Authority (“Authority”) negotiated a disposition and development agreement (“DDA”) under which the City agreed, subject to the terms and conditions provided therein, to convey the Property to Developer for the construction of the Project.
On October 24, 2023, the City Council: (1) determined that the Property qualified as “exempt surplus land” under the Surplus Land Act pursuant to Government Code section 54221(f)(1)(A); (2) declared the City’s intent to sell the Property to Developer in accordance with the DDA; and (3) set a public hearing for November 14, 2023 to consider any protests to the City’s conveyance of the Property. Following the November 14th public hearing, the City Council and the Authority’s Board of Directors (“Authority Board”) approved the DDA and authorized the City Manager and the Authority’s Executive Director to execute the same. Collectively, the foregoing satisfied the City’s Surplus Land Act and Government Code section 37420 et seq. obligations in connection with its disposition of the Property for the Project.
The DDA contemplates that the Project’s financing will come from multiple funding sources, including equity raised by the low income tax credits, a senior loan issued from a reputable intuitional lender, and loans from the City and Authority to Partnership. On February 25, 2025, the City Council and the Authority Board approved a first amendment to the DDA, which increased the City’s financial support for the Project in order to augment its competitiveness for a low income tax credit allocation from the California Tax Credit Allocation Committee.
PROJECT DESCRIPTION:
Government Code section 65402 requires the Planning Commission to render a determination as to whether the City’s disposition of the Property to Purchaser for the Project is consistent with and conforms to the General Plan.
ANALYSIS:
General Plan Conformance Findings
Before the close of escrow, Government Code section 65402 requires the Planning Commission to render a determination as to whether the City’s disposition of the Property to Purchaser for the Project is consistent with and conforms to the General Plan. In accordance with Government Code section 65402, the City’s disposition of the Property is consistent with and conforms to the General Plan as follows:
1. Housing Element (“HE”) Policy 1.3 provides that the City will promote the development and access to housing affordable to all income levels in the City. The City’s disposition of the Property for the Project is consistent with HE Policy 1.3 because the Project will create 49 new affordable units that-pursuant to the Regulatory Agreement-will be reserved for low, very low, and extremely low income households. For these reasons, the City’s disposition of the Property is consistent with HE Policy 1.3.
2. HE Policy Action 1E provides that the City shall encourage the development of housing units for low, very low, and extremely low income households. The City’s disposition of the Property for the Project is consistent with HE Policy Action 1E because it will result in the creation of 49 new units reserved for low, very low, and extremely low income households.
3. HE Policy 4.1 provides that the City should enhance opportunities for affordable housing for all segments of the City’s population. Here, the City is enhancing affordable housing opportunities by disposing of City-owned property to Purchaser for the Project, which upon completion will result in an additional 49 affordable in the City’s rental housing stock. For these reasons, the City’s disposition of the Property for the Project is consistent with HE Policy 4.1.
Staffs’ recommendation action is for the Planning Commission to adopt the attached Resolution. Doing so will satisfy the City’s obligations under Government Code section 65402 by making the above General Plan conformance findings.
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA)
Pursuant to the California Environmental Quality Act (Pub. Res. Code §§ 21000 et seq.) (“CEQA”), and the State CEQA Guidelines (14 Cal. Code Regs. §§ 15000 et seq.) the City determined that a Mitigated Negative Declaration (“MND”) be prepared in order to analyze all potential adverse environmental impacts of proposed multi-level residential affordable apartment buildings with associated green space, community gathering areas, vehicle parking, landscaping, and security fencing on the approximately 4.8-acres of land (“Courtplace Project”). The City prepared and adopted the Courtplace Project MND for the Courtplace Project on November 1, 2022 (SCH #: 2022100111) and approved a Mitigation Monitoring and Reporting Program for the Project. Under the MND, the Property and the Project are Phase I of the Courtplace Project.
Pursuant to CEQA, when taking subsequent discretionary actions in furtherance of a project for which an MND has been adopted, the lead agency is required to review any changed circumstances to determine whether any of the circumstances under Public Resources Code section 21166 and State CEQA Guidelines section 15162 require additional environmental review. Staff evaluated the attached Resolution in light of the standards for subsequent environmental review outlined in Public Resources Code section 21166, State CEQA Guidelines section 15162 and City of Fontana’s 2019 Local Guidelines for Implementing CEQA.
In connection with this Resolution and the Planning Commission’s review of the Courtplace Project MND, staff recommends that the Planning Commission independently review all the prior environmental documentation prepared for the Courtplace Project, exercise its independent judgment, and make the determination that the Courtplace Project MND fully analyzed and with the adoption of the Mitigation and Monitoring Reporting Program, mitigated all potentially significant environmental impacts, if any, that would result from the Resolution making General Plan conformance findings, and therefore, no subsequent EIR or mitigated negative declaration is required.
MOTION:
Approve staff’s recommendation.
ATTACHMENTS:
1. Vicinity Map
2. Resolution Making Gov. Code section 65402 General Plan Conformance Findings
3. Government Code Section 65402