Item 12 - Density Bonus Agreement No. 2025-03

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DBA No. 2025-03 — Olive Crest (2130 East Fourth Street) June 23, 2025 Page 3 establishing a statewide "housing emergency" until January 1, 2025. One of the provisions of the Senate Bill amended Government Code Section 65941.1 with the broad goals of facilitating increased production of new residential units, protecting existing units, and providing for an expedited review and approval process for housing development projects through submittal of a "preliminary application." On January 1, 2022, the HCA was extended until January 1, 2030, with the passage of Senate Bill 8. Among other changes, SB 330 requires the following for applicable housing development projects: New, non-objective development standards established after January 1, 2020, cannot be imposed or enforced. Applicable housing development projects must receive a decision in no more than five (5) public hearings - whether the item is being heard by a Design Review Board, Planning Commission or City Council, and including any appeals (save for those related to a legislative action). Prohibits any moratorium, project or action that would result in a net downzoning, limit the number of permits to be issued, or otherwise reduce housing or limit overall population. As a "housing development project," the application is being submitted pursuant SB 330. The development is required to comply with the objective zoning code standards applicable to the property, but only to the extent that they facilitate the development at the density allowed, 90 dwelling unit per acre (du/ac) per the District Center — Medium High (DC-3) General Plan land use designation. On August 1, 2023, the Applicant submitted an SB 330 Preliminary Application for the proposed Project, which was deemed complete on August 17, 2023. Typically, in order to exercise the option to develop a multi -family residential project under the Metro East Use Overly Zone (MEMU), a project would require a Site Plan Review (SPR) application to be reviewed and approved by the Planning Commission, pursuant to Sections 2.3 and 8.1 of the MEMU. This is typically the requirement given that the underlying zoning designations within the MEMU area are commercial (e.g., Community Commercial "Cl" or Arterial Commercial "C5") or Professional (P), which do not allow residential or mixed -use projects. However, as an SB 330 project, the Applicant can propose to develop per the underlying DC-3 General Plan land use designation, which permits standalone residential and mixed -used projects, without having to rezone the subject property and without being subject to additional entitlements to "activate" the MEMU. As such, the proposed Project is not subject to the SPR requirements outlined in the MEMU. Although not subject to an SPR, the Project has been carefully designed to be consistent with the Village Center (VC) district standards outlined in the MEMU, with exception of the requested concessions and waiver or reduction through the density bonus agreement, which are discussed in subsequent sections in this report.