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2. Special circumstances are applicable to the subject site that • necessitates a parking variance for the project. The subject site currently contains ten (10) parking spaces, 1.66 for each unit. The applicant will be reducing the number of units on the premises from eight (8) to six (6), which will reduce the parking demand for the site. Additionally, occupancy restrictions will be established for the project that will result in a lesser number of residents than currently found on the premises, further reducing the need for parking. Therefore, the strict application of the zoning code would deprive the subject property of privileges. 3. That the granting of a variance is necessary for the preservation and enjoyment of one or more substantial property rights. The parking variance is necessary to preserve property rights as the owners will be rehabilitating the existing complex and providing affordable, rent controlled housing for residents of the City. 4. That the granting of a variance will not be materially detrimental to the public welfare or injurious to surrounding property. The granting of the variance for a reduction in parking will • not be detrimental to the area as the reduction in units, in conjunction with the occupancy restrictions, will result in a lower parking demand. 5. That the granting of a variance will not adversely affect the General Plan of the City. The granting of the variance will not adversely affect the City's General Plan in any way as the land use designation of Medium Density Residential (MR) allows the rehabilitation of existing apartment complexes. F. In accordance with the California Environmental Quality Act, the recommended action is exempt from further review pursuant to Section 15301. This Class 1 exemption allows the repair, maintenance and minor alteration of existing structures with no expansion. Categorical Exemption No. 2006-208 will be filed for this project. Resolution No. 2007-04 Page 2 of 6