HomeMy WebLinkAbout03-03-2015 C3 Affordable Housing Incentive - 860 HumbertCity of San Luis Obispo, Council Agenda Report, Meeting Date, Item Number
FROM: Derek Johnson, Community Development Director
Prepared By: Rachel Cohen, Associate Planner
SUBJECT: REQUEST FOR AN 80 PERCENT DENSITY BONUS AFFORDABLE
HOUSING INCENTIVE FOR 860 HUMBERT AVENUE (CITY FILE NOS.
A/ARC/AHI 113-14).
RECOMMENDATION
Adopt a Resolution (Attachment 1) approving the 80 percent density bonus affordable housing
incentive for 860 Humbert Avenue, Lot 51.
SITE DATA
Applicant SLO Non-Profit Housing Corp.
(SLONP)
Representative Thom Jess, Arris Studio Architects
Zoning R-3-S-PD (Medium-Density
Residential with Special
Considerations and Planned
Development Overlays)
General Plan Medium-High Density Residential
Site Area 0.6 Acres (26,016 square feet)
Environmental
Status
Mitigated Negative Declaration
(MND) approved by City Council
(ER 123-08) on March 17, 2009.
Addendum to MND 123-08
approved by the ARC on February
2, 2015.
REPORT IN BRIEF
The City of San Luis Obispo has recognized housing as an important issue within the City. The
City’s 2013-15 and upcoming 2015-17 Financial Plans identified affordable housing as a Major
City Goal, specifically targeting homeless or those at risk of homelessness. The City has also
endorsed the priorities and guiding principles of the San Luis Obispo Countywide 10-Year Plan
to End Homelessness, which provides guidance for future efforts, such as affordable housing,
both within the City and in cooperation with regional partners. The City’s recently adopted
Housing Element includes numerous policies and programs that support incentives, such as
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density bonuses, to provide housing for low, very low and extremely low income households,
including veterans.
SLO Non-Profit Housing Corp. (SLONP), an affiliate of the Housing Authority of the City of
San Luis Obispo (HASLO), has submitted an application requesting an 80 percent density bonus
for an affordable housing project located at 851 and 860 Humbert Avenue. The project proposes
to provide 19 rental units for low, very low, or extremely low income individuals. Half of the
units will be prioritized for homeless veterans. The 20th unit will be a resident manager unit.
DISCUSSION
Previous Review
The proposed housing site has a history of previous reviews and entitlements for a mix of
affordable and market rate housing at Moylan Terrace. Section 1.0 of Attachment 1 provides a
detailed timeline and brief description of these entitlements. SLONP/HASLO is proposing
additional affordable housing units to the site.
Site Information
The project site encompasses two parcels, Lot 81 (14,845 square feet) and Lot 82 (11,171 square
feet) at 851 and 860 Humbert Avenue, which are located east of Broad Street at the end of
Humbert Avenue. The two parcels are in the Medium High-Density Residential (R-3-S-PD) zone
within the Airport Overlay Zoning District. Currently, both lots are vacant with the exception of
a small, seven vehicle parking lot on Lot 82. The sites are located within the South Broad Street
Area Plan and surrounded by the Service Commercial (C-S) zone and Retail Commercial (C-R)
zone to the north and west, high-density residential (R-3-PD) to the south, and the Union Pacific
Railroad tracks to the east (C-S zone).
Figure 1: Front (South) elevation of the 18-unit structure located on Lot 81
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Project Description
The proposed project will include a total of 20 units and a community room; 19 affordable rental
units with the 20th unit reserved as the resident manager’s unit. 18 of the units will be located on
Lot 81 and 2 of the units and the community room will be located on Lot 82 (see Figure 2
below). The units will provide housing for a range of income levels including low, very low, or
extremely low income individuals with half of the units being targeted for the region’s veteran
homeless population. Considering Lot 81 and Lot 82 as one project, the development would
require a 20 percent density bonus. However, since the project exists on two separate lots,
density is being calculated independently. Therefore, SLONP is requesting an 80 percent density
bonus for Lot 81 and no density bonus for Lot 82, since development at this location meets
density requirements.
Figure 2: Site plan and locations of Lot 81 and Lot 82.
Project Analysis
1. Affordable Housing Density Bonus
Per State law, projects that provide affordable housing are allowed up to 35 percent density
bonus based on the number of deed restricted affordable units provided in the project. Chapter
17.90 of the Zoning Regulations (Affordable Housing Incentives) outlines the various incentives
for affordable housing projects. One of the alternative incentive examples called out in the
Chapter is the granting of a density bonus in excess of State allowances.
The site, which is zoned R-3-S-PD, has an allowable density of 6.1 units based on the site’s net
acreage (18 units per acre). The applicant is requesting additional density that would increase
the total number of density units to 10.8 (32.4 units per acre), resulting in an 80 percent density
bonus. 17 of the 18 units will be low, very low, or extremely low income rentals. No other
incentives or exceptions have been requested and the proposed structure meets all development
Lot 81
Lot 82
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standards for the R-3 zone. The requested density bonus is consistent with the eligible alternative
incentive proposals for affordable housing projects and staff is recommending Council approve
the request.
2. General Plan Policies and Programs
The 2015 Housing Element (HE) provides policies and programs that speak specifically to
supporting affordable housing projects and increasing density bonuses above state allowances
where appropriate. A detailed list of the applicable Housing Element Policies and Programs and
staff analysis are provided in Attachment 1, Section 2.0.
As proposed, the project will provide 19 affordable housing units for low, very low and
extremely low housing for the region’s veteran population (HE 2.17 and HE 8.1) within the
medium-high density residential zone (R-3) which is intended to be developed at a higher density
(HE 6.10). Supporting a density bonus is also consistent with HE 6.19 and will assist the project
be competitive for State tax credits on a regional basis and provide housing at lower income
levels, such as very-low and extremely-low. The project has applied for 2015 CDBG funding and
the Human Relations Commission (HRC) has recommended the project receive $151,000. The
Council will be reviewing this recommendation on March 17, 2015.
3. Major City Goals (2013-2015 and 2015-2017)
The requested 80 percent density bonus is consistent with the City’s Major City Goal to address
housing.
2013-15 Financial Plan Major City Goal: Implement Comprehensive Strategies to Address
Homelessness. This Major City goal proposes comprehensive strategies to address homelessness
which included implementation of Housing Element programs. This included working with
developers to provide affordable housing units in projects and to complete housing projects in
process.
Recently adopted 2015-17 Financial Plan Major City Goal: Housing: Implement the Housing
Element, to facilitate workforce, affordable, supportive and transitional housing options.
ENVIRONMENTAL REVIEW
A Mitigated Negative Declaration (MND) (R/PD/TR/ABAN/A 27-06 and ER 123-08) was
approved by City Council on March 17, 2009 for parcels located at 851 and 860 Humbert
Avenue. The proposed project is part of originally reviewed project that included the multi-
family Moylan Terrace project, but did not include the 18-unit multi-family affordable housing
project. On February 2, 2015, the ARC adopted an addendum to the MND because the proposed
modifications were generally consistent with the originally approved Moylan Terrace project
(R/PD/TR/ABAN/A 27-06 and ER 123-08); therefore, no additional mitigation measures were
deemed necessary. All previously adopted mitigation measures from ER 123-08 and the
addendum will continue to apply to the project.
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In addition, the project, according to Section 15194 (Affordable Housing Exemption) is exempt
from CEQA Guidelines. The project site is not more than five acres in area, surrounded by urban
uses, consists of the construction of residential housing consisting of 100 or fewer units that are
affordable to low-income households, and the units are deed restricted for “affordable rent” for
low-income very low income, and extremely low income households for a period of at least 30
years.
FISCAL IMPACT
When the General Plan was prepared, it was accompanied by a fiscal impact analysis, which
found that overall the General Plan was fiscally balanced. Accordingly, since the proposed
density bonus request is consistent with the General Plan, it has a neutral fiscal impact.
ALTERNATIVES
1. Deny the request for an 80 percent density bonus, based on findings that the request is
inconsistent with alternative or additional incentive regulations within the municipal code.
2. Continue the item for additional information or discussion.
ATTACHMENTS
Attachment 1: Previous Review and Detailed Policy and Program Analysis
Attachment 2: Draft Resolution
Attachment 3: Vicinity Map
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860 Humbert Avenue-Housing Incentive ATTACHMENT 1 Page 1
1.0 Previous Review
As mentioned in the Council Agenda Report, the proposed housing site has a history of previous
reviews and entitlements which are outlined below:
• August 15, 2006 – City Council approved a General Plan Amendment and Rezoning of
851 and 860 Humbert from Services and Manufacturing (M) to Medium-High Density
Residential with the Special Considerations Overlay (R-3-S), and adopted a resolution to
pursue abandonment of portions of Frederick Street and Humbert Avenue rights-of-way
to facilitate HASLO’s development of affordable and market rate housing on the site.
• March 17, 2009 – City Council approved all other necessary entitlements, including a
Planned Development Rezone, Vesting Tentative Tract Map, Use Permit, Abandonment
of rights-of-way, the disposition of surplus property, and Environmental Review for the
Moylan Terrace project, which included the subject sites.
• July 18, 2014 – The Director approved an Administrative Use Permit to allow a
community room within the residential zone as a part of the subject project (A 113-14).
• December 9, 2014 – City Council approved the Land Use and Circulation Element
(LUCE) Update to the City’s General Plan and the implementation of the Airport Area
Overlay Zone (AOZ). With the adoption of the LUCE, the site has an allowed density of
18 units per acre. Under the Airport Land Use Plan the project was limited to a maximum
of 12 dwelling units (doors) per acre.
• February 2, 2015 – ARC reviewed and approved the architectural design of the two-lot,
20-unit affordable housing project with a community room (ARC 113-14).
• February 20, 2015 – The Director approved an Administrative Use Permit to allow a
residential project in a special considerations zone and an automobile trip reduction plan
for the proposed project (A 113-14).
2.0 General Plan Policies and Programs Analysis
The following paragraphs evaluate the proposed project with Housing Element Policies and
Programs. Policies and Programs are in italics followed by staff’s response.
Housing Element Program 2.17: Continue to consider increasing residential densities above
state density bonus allowances for projects that provide housing for low, very low and extremely
low income households.
Staff analysis: Increasing the density for the proposed project would be consistent with Program
2.17 since the applicant is providing 19 units affordable to low, very low, or extremely low
income households.
Housing Element Program 6.10: To help meet the Quantified Objectives, the City will support
residential infill development and promote higher residential density where appropriate.
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Staff analysis: The proposed location of the project is within the R-3 zone which is intended to
provide medium-high density housing for smaller households and various types of group housing.
The site is compatible with the surrounding neighborhood since it is located next to other medium-
high density residential development projects (i.e. Moylan Terrace and Villa Rosa).
Housing Element Program 6.19: Continue to incentivize affordable housing development with
density bonuses, parking reductions and other development incentives, including City financial
assistance.
Staff analysis: Affordable housing projects are difficult to finance and depend on a variety of funding
sources and incentives. The added density will assist the project be competitive for State tax credits
on a regional basis and provide housing at lower income levels, such as very-low and extremely-low.
19 rental units is a very small project for financing under the Low-Income Housing Tax Credit
Program (LIHTC), which is the source of funds for approximately 50 percent of project
development costs. The project needs to leverage the LIHTC Program as a funding source
because of limited nature of other funds, including City and County resources. The project has
applied for 2015 CDBG funding and the Human Relations Commission (HRC) has
recommended the project receive $151,000. The Council will be reviewing this recommendation
on March 17, 2015.
Housing Element Policy 8.1: Encourage housing development that meets a variety of special
needs, including large families, single parents, disabled persons, the elderly, students, veterans,
the homeless, or those seeking congregate care, group housing, single-room occupancy or co-
housing accommodations, utilizing universal design.
Staff analysis: The proposed affordable housing project will provide low, very low, or extremely
low income housing for the region’s veteran population.
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ATTACHMENT 2
RESOLUTION NO. (2015 Series)
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO
APPROVING THE 80 PERCENT DENSITY BONUS AFFORDABLE HOUSING
INCENTIVE FOR 860 HUMBERT AVENUE, LOT 51 (AHI 113-14)
WHEREAS, the applicant, on December 12, 2014, submitted an application to request
an eighty percent (80%) density bonus affordable housing incentive for 860 Humbert Avenue,
Lot 51; and
WHEREAS, the City Council on March 3, 2015, considered the request for the 80
percent density bonus affordable housing incentive for 860 Humbert Avenue, Lot 51 (AHI 113-
14); and,
WHEREAS, the City Council has duly considered all evidence, including the testimony
of the applicants, interested parties, and the evaluation and recommendations by staff, presented
at said hearing.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis
Obispo as follows:
SECTION 1. Findings. Density Bonus. Based upon all the evidence, the City Council
makes the following findings:
1. The proposed project will provide quality affordable housing consistent with the intent of
Chapter 17.90 of the Municipal Code, and the requested density bonus is necessary to
facilitate the production of affordable housing units.
2. The request for a density bonus is consistent with the intent of Housing Element policy
8.1 and programs 2.17, 6.10, and 6.19 and the alternative affordable housing incentives
outlined in Section 17.90.060 of the City’s Zoning Regulations.
SECTION 2. Environmental Determination.
1. A Mitigated Negative Declaration (MND) (R/PD/TR/ABAN/A 27-06 and ER 123-08)
was approved by City Council on March 17, 2009 for parcels located at 851 and 860
Humbert Avenue. On February 2, 2015, the ARC adopted an addendum to the MND
because the proposed modifications were generally consistent with the originally
approved Moylan Terrace project (R/PD/TR/ABAN/A 27-06 and ER 123-08); therefore,
no additional mitigation measures were deemed necessary. All previously adopted
mitigation measures from ER 123-08 and the addendum will continue to apply to the
project.
2. The project is exempt under Section 15194 (Affordable Housing exemption) of the
CEQA Guidelines because the project site is not more than five acres in area, surrounded
by urban uses, consists of the construction of residential housing consisting of 100 or
fewer units that are affordable to low-income households, and the units are deed
restricted for “affordable rent” for low-income very low income, and extremely low
income households for a period of at least 30 years.
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Resolution No. _______________ (2015 Series) ATTACHMENT 2
Page 2
SECTION 3. Action. The City Council hereby approves the 80 percent density bonus,
based on the above findings in Section 1 and subject to the following conditions:
1. When selecting tenants for the project, the applicant/SLONP/HASLO shall give
preference to those in the following order:
1. Those who live and/or work in the City of San Luis Obispo.
2. Those who live and/or work in the County of San Luis Obispo.
3. Those in outside markets.
Upon motion of _______________________, seconded by _______________________,
and on the following vote:
AYES:
NOES:
ABSENT:
The foregoing Resolution was adopted this _______________________, 2015.
________
Mayor Jan Marx
ATTEST:
____________________________
Anthony J. Mejia, MMC
City Clerk
APPROVED AS TO FORM:
____________________________
J. Christine Dietrick, City Attorney
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VICINITY MAP File No. 113-14860 Humbert Ave.¯
ATTACHMENT 3
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