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A. Purpose and Intent. The affordable housing overlay (AHO) serves to implement housing element programs and address housing needs within the city by encouraging the development of very low income and low income affordable housing and new multifamily residential development. The AHO implements the housing element programs by providing development regulations to support and incentivize affordable housing and multifamily residential development on designated housing opportunity sites. It shall provide for the continuation of the ability to develop land uses permitted by the existing base (underlying) zoning of a property unless the property is developed for residential uses in accordance with the AHO.

B. Applicability. The AHO shall apply to any underlying zone district to support housing element programs as designated on the zoning map on file at the community development department. For any housing project developed in accordance with this section, these standards shall apply instead of those in the underlying base zone district. A property owner may elect to continue to use the site consistent with the underlying zoning district, in which case the applicable underlying district standards will apply.

C. Permitted Uses. Uses permitted in the AHO shall be as follows:

1. Multiple dwellings and dwelling groups;

2. Condominiums shall be allowed in accordance with the standards allowed in Chapter 17.66;

3. Accessory dwelling units pursuant to the provisions of Section 17.42.040; and

4. Home occupations pursuant to Section 17.42.110.

D. Application and Review.

1. Administrative approval shall be given to residential development projects that comply with all the requirements of this section. The following process will be followed when an AHO application is filed:

a. Form of Application. An application for a project approval shall be completed on a form provided by the planning department.

b. Administrative Approval. Administrative approval is ministerial in nature and is conducted at the staff level under the general direction of the community development director without notice or hearing. A community meeting prior to filing an application is encouraged but not required. Approval shall be granted by the planning department only when the permit application contains sufficient information for the planning department to verify that the proposed use will be consistent with the standards outlined in this subsection. No building, grading or other construction permit shall be issued by the responsible department until the administrative approval process has been conducted by the planning department. Projects that comply with the requirements shall be permitted by right. Compliance with the requirements of this section shall not, however, waive any additional requirements for compliance such as an application for a lot line adjustment, merger of parcels, or subdivision in conjunction with approval of an application. A separate application for the lot line adjustment, merger of parcels, or appropriate subdivision map shall proceed in accordance with Title 16.

c. Approval. The community development director shall approve any application if it complies with all requirements of this section.

d. Notice of Decision. A notice of decision shall be sent to both the applicant and the applicant’s representative (as shown on the application) via first class mail and postage prepaid or email and shall be provided via either of those methods to any person who has made a written request for a copy of the decision. The decision of the community development director shall be final and conclusive.

e. Expiration of Administrative Review. Within two years of the date of approval by the community development director, commencement of construction shall have occurred or the approval shall become null and void. A one-year extension may be granted by the community development director for good cause if the project is compliant with the original approval.

E. General Regulations.

1. Relationship to State Density Bonus Law.

a. An application for a project pursuant to this section may apply for a density bonus in accordance with California Government Code Section 65915, as may be amended. At the discretion of the applicant, the incentives provided pursuant to the AHO may be combined with the incentives provided pursuant to state density bonus law.

b. Illustrative Calculation. By way of example, for illustrative purposes only, where a proposed site consists of one-half acre of land and is proposed to be developed with a total of fifteen dwelling units, the base density, affordable unit distribution and density bonus under state density bonus law (if requested) would be calculated as follows:

Base density

30 dwelling units/acre

12% restriction

2 very low income units

State density bonus law

Additional 38.8% for 12% restriction

Additional units with density bonus

5.82 = 6

Total units for project

21

c. In calculating the required number of units, fractional units of one-half or above shall be rounded up to a whole unit.

2. Relationship to Inclusionary Housing Ordinance. Inclusionary housing in conformance with the General Plan Housing Element and Section 17.48.030 shall be provided for all residential developments or projects. Inclusionary requirements must be met when twenty units are proposed, notwithstanding units from a density bonus.

F. Development Standards.

1. Density.

a. Each lot or parcel of land shall have a minimum residential density of thirty dwelling units per acre. Maximum density for the development shall be thirty-five dwelling units per acre, except for projects proposed along Reservation Road or Del Monte Boulevard, which shall be a maximum fifty dwelling units per acre. Any new residential development otherwise allowed by the underlying zoning district must be at a minimum density of twenty units per acre.

b. Affordable Housing Requirement.

i. Either twelve percent of the development shall be dedicated to very low income households or fifteen percent shall be dedicated to low income households. This is the minimum requirement in order to receive the benefits of the overlay policy.

ii. Prior to issuance of building permits, applicant shall execute an agreement with the city, to be executed by the city manager without review by the planning commission or city council, in a form acceptable to the city attorney ensuring the continued affordability of the affordable dwelling units for a period of not less than fifty-five years. This agreement shall be recorded with the county recorder.

2. Projects seeking approval pursuant to this section shall be subject to the following development standards:

a. Total Open Space Required. The minimum area of open space required for the development shall be a total of fifteen percent for sites one acre or greater and ten percent for sites less than one acre. A portion of all of the required usable open space shall be private as provided by this section; otherwise it shall be shared in common.

i. Private Open Space. A minimum of eighty square feet for ground floor units and forty square feet for units located on second levels and above.

ii. Common Open Space. Common open space shall average at least twenty-five feet in width and at no time may be less than ten feet in width.

b. Building Height. Maximum building height for residential buildings shall be forty-two feet, except for projects proposed along Reservation Road or Del Monte Boulevard, which shall be forty-eight feet.

c. Minimum Building Site Area. Building site area shall be a minimum of six thousand square feet.

d. Site Coverage. No requirement.

e. Setbacks.

i. Front Yard. Minimum front yard setback shall be ten feet. The front yard shall be measured from the front property line or the edge of easement for the private roadway, whichever is less. A maximum front yard setback shall be twenty-five feet for Del Monte Road or Reservation Road.

ii. Side Yard. Minimum side yard setback shall be five feet, or ten feet if adjacent to side street.

iii. Rear Yard. Minimum rear yard setback shall be five feet, or ten feet if adjacent to side street.

f. Parking. Parking requirements for residential uses permitted under this section shall be allowed in accordance with Table 1 below. Where the residential parking standards in Section 17.44.020 may differ, the provisions of this section shall supersede other provisions of the code.

Table 1. Reduced Parking Standards for Qualifying AHO Developments

Bedroom Count

Base Parking Standards

Modified Parking Standards for Qualifying Housing Overlay Developments

Studio

1 space/dwelling unit

1 space/dwelling unit

1 bedroom

2 spaces/dwelling unit

1.5 spaces/dwelling unit

2—3 bedroom

2 spaces/dwelling unit

1.5 spaces/dwelling unit

Guest spaces

None required

None required

3. Design Standards.

a. Height Transitions From Adjacent Properties. Any portion of a building within twenty feet of the R-1, R-2, or R-3 zone district shall be limited to thirty-five feet in height.

b. Building Orientation. All new or modified buildings shall orient the primary facade to the primary street. Secondary facades shall front side or rear yards. For corner buildings, primary facades shall front both primary streets.

c. Entry Feature. Porch, stoop, terrace, forecourt, or similar entry features are required for all shared residential entrances. Individual entrances to ground-floor units must incorporate a porch, stoop, terrace, walled garden space or private deck.

d. Facade Composition. Building facades shall be arranged in an orderly composition of bays, defined by vertically aligned openings alternating horizontally with solid walls or columns. The pattern shall be visually expressed through the spacing of openings, recesses, eaves, cornices, overhangs, trellises, exposed rafters, columns, or bay windows.

e. Windows. Upper-story windows shall be recessed from the wall surface by a minimum or two inches or shall have surface trim and sills.

f. Building Articulation.

i. Blank walls without windows, doors, or other articulation are prohibited. The maximum length of any blank wall shall be limited to twenty feet.

ii. Elements such as roof dormers, hips, gables, balconies, wall projections and porches are required to break up the mass of building facades. Not less than forty percent of the length of a building facade shall be treated with such elements. End units shall have the same design elements as front facades. Unarticulated and windowless walls are not allowed.

g. Parking Location. Surface parking lots and garages shall be located to the side or rear of buildings or in basements and not adjacent to public roadways. Surface parking shall be prohibited within the front twenty-five percent of the lot depth. Structured parking shall be screened from the primary frontage.

h. Mechanical and Utility Equipment. Mechanical and utility equipment (e.g., heating, cooling, antennas, satellite dishes, air conditioners, transformers, electric and gas meters, junction boxes, or similar equipment) shall be concealed with landscaping, walls, or fencing or, if roof mounted, with mechanical screens or roof wells.

i. Primary Pedestrian Access. Primary pedestrian access to building lobbies shall be provided along the sidewalk or permitted open spaces. Parcels longer than three hundred feet shall be developed with a mid-block pedestrian paseo or open space. Where paseos are utilized, the placement shall emphasize connectivity to other paseos, alleys, or mid-block crossings. Pedestrian paseos may be no less than fifteen feet wide.

j. Privacy.

i. Projects within ten feet of existing buildings along the interior property lines shall reduce direct views into the adjacent building by offsetting or staggering windows and upper story balconies and decks by a minimum of one foot so there is no direct line of sight into the existing building’s windows, balconies, or decks.

ii. Balconies, roof decks and other habitable outdoor space are not allowed on upper-story facades directly adjacent to R-1 zones.

G. Incentives. Applications meeting the purpose and applicability of the AHO will qualify for one of several incentive options for the creation of housing. The following development incentives are available to qualifying residential developments:

1. Waived, reduced, or deferred planning, plan check or construction permit fees;

2. Deferment of city-generated construction and impact fees until project completion or occupancy; or

3. Payment of construction and impact fee over a twelve-month or longer period after project completion.

H. Design. Development in any specific plan area shall be subject to the architectural control process identified in that specific plan. (Ord. 2023-12 § 3, 2023; Ord. 2023-01 § 3, 2023)