HomeMy WebLinkAbout5c_Attachment 5_Sites to Accommodate RHNA for Lower Income HouseholdsHousing Element
Newport Beach General Plan 5-75
SITES TO ACCOMMODATE THE RHNA FOR LOWER-
INCOME HOUSEHOLDS
Given the allowed densities of between 30 and 50 dwelling units per acre, the John Wayne Airport
Area has the greatest potential to accommodate the development of lower-income housing in the
City. Pursuant to Government Code Section 65583.2, a minimum density of 30 du/ac shall be
deemed appropriate to accommodate housing for lower-income households for urbanized areas. The
City’s 2014-2024 RHNA allocation results in a total lower-income housing need of only two dwelling
units. However, the following analysis was prepared in support of the City’s lower-income housing
need identified in the previous 2006-2014 Housing Element and remains relevant to illustrate the
significant opportunity that continues to exist in the City for lower-income housing development. In
addition to the information provided within the Sites Analysis and Inventory, this section of the
Housing Element analyzes how the existing uses, land-use regulations, and parcel sizes impact the
viability of this strategy to accommodate lower-income households within the planning period.
Non-Vacant Sites
The General Plan provides for the maintenance and limited expansion of the currently developed mix
of research and development, office, high technology, industrial and commercial uses with the Airport
Area; however, the General Plan also identifies this area as one of the greatest opportunities in the
City to create new residential neighborhoods through the replacement of existing uses and new
construction on underutilized parking lots. The fact that these properties are currently developed with
existing uses should not be viewed as an impediment to new residential development. With high land
values in Newport Beach and a strong demand for housing, the feasibility for infill and reuse of these
sites within the Airport Area is supported by several factors:
■Irvine Business Complex- The Airport Area shares many similarities and borders the Irvine
Business Complex (IBC) located in the City of Irvine. Similar to the Airport Area, the IBC
was developed in the 1970’s solely as a commercial and industrial center; however, the IBC
has increasingly experienced redevelopment in the form of residential and mixed-use housing.
Market forces have increased housing and mixed-use development in the IBC. Various tilt-up
industrial buildings have been demolished over the years and reconstructed with high-density
apartments and condominiums. According to City of Irvine staff reports, a number of factors
have created an impetus for the IBC to transition from a predominately low density office and
industrial park to an urban, mixed-use center. These factors include; 1) a strong residential
market demand combined with a lack of available land in the region for new housing; 2) an
existing stock of aging, low density tilt-up industrial buildings; and 3) a key location at the
confluence of several freeways and regional circulation systems. Given the similar location of
the Airport Area and high land values in Newport Beach, these same factors that have
influenced the development in the IBC also influence development in the Airport Area.
■To determine the market feasibility of units developed at densities prescribed for the Airport
Area, housing development densities in the adjoining IBC were reviewed. Data indicated that
units constructed have averaged 50 units per acre; therefore, it can reasonably be expected that
redevelopment of existing non-vacant sites within the Airport Area is feasible given a similar
density limit.
Housing Element Update Advisory Committee - July 15, 2020
Item No. V(c) - Attachment 5
Sites to Accommodate RHNA for Lower Income Households
Housing Element
Newport Beach General Plan 5-76
■ Several property owners and developers have approached and are currently processing
applications with the City of Newport Beach to request consideration for new housing
development, such as owners of the Uptown Newport site (formerly referred to as Conexant)
where development on 25 of the total 26.9 acres has been proposed. The Uptown Newport
project would result in the demolition and replacement of 441,127 square feet of existing
industrial and office buildings with a residential and mixed-use development. Utilizing a
density bonus, a total of 1,244 housing units, consisting of approximately 1,060 market-rate
units and 184 affordable units (depending on final target income level) would be developed.
In addition, 11,500 square feet of neighborhood-serving uses, a Central Park and two pocket
parks totaling two acres, and required parking would be developed in a pedestrian-friendly
village. The project was approved by the City Council on March 13, 2013. Implementation of
this project is expected to occur over two phases, with the first phase anticipated to begin in
late 2014 and the second phase beginning in 2017. To the west of Uptown Newport, property
owners of the Koll Center Newport are in the process of preparing a Planned Community
Development Plan amendment for submission to develop 260 infill housing units within the
approximately 25 acres of surface parking areas; public hearings are anticipated for late 2015.
■ Not all 207 acres of MU-H2 properties within the Airport Area are required to be redeveloped
to achieve the maximum development limit of 2,220 units. Based on the Sites Analysis and
Inventory, cumulatively, areas determined as strong candidates for redevelopment contain
approximately 96 acres. Only 44 acres would be required to be redeveloped at the maximum
density (50 du/ac) and 73 acres at the minimum density (30 du/ac) to achieve the maximum
development limit of 2,200 units. Housing development, however, is likely to occur as both
infill and re-development as evidenced by submittal of applications by property owners such
as Koll and Uptown Newport.
Lot Consolidation
The General Plan provides policies for the orderly evolution of the Airport Area from a single
purpose business park to a mixed-use district with cohesive residential villages integrated within the
fabric of office, industrial, retail, and airport-related business. The goal of the General Plan is to create
livable neighborhoods with a strong sense of place and community. General Plan policies indicate that
residential villages shall be centered on neighborhood parks interconnected by pedestrian walkways
with a mix of housing types and buildings at a sufficient scale to achieve a complete neighborhood. In
formulating General Plan policies, it was important that residential development not occur on a
“piecemeal” basis, but rather there must be sufficient critical mass to enable each increment of
housing to stand alone as a viable and livable neighborhood. Therefore, the General Plan establishes
several policies that set forth criteria for the configuration and design of new residential villages in the
Airport Area. Specifically, General Plan Policy LU 6.15.6 defines standards for the development of
cohesive and integrated neighborhoods. It stipulates that residential neighborhoods shall contain a
minimum of 10 contiguous acres centered on a neighborhood park and other amenities. The first
phase of residential development in each village shall be at least five gross acres, exclusive of rights-of-
ways.
The Uptown Newport and Koll parcels are large in area, 26.9 acres and 25 acres respectively, and are
therefore not constrained by the minimum 10-acre site requirements. The Uptown Newport parcels
are identified as Potential Residential Village Site 4 and the Koll parcels are identified as Potential
Residential Village Site 3 in the Sites Analysis and Inventory. The other two potential residential
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Item No. V(c) - Attachment 5
Sites to Accommodate RHNA for Lower Income Households
Housing Element
Newport Beach General Plan 5-77
villages identified within the Sites Analysis and Inventory would require the assemblage of several
independently owned parcels in order to meet the minimum 10-acre site requirement. Although it is
not unreasonable to assume that larger scale, for-profit developers will have the means and ability to
acquire and assemble the required number of parcels over time, an affordable housing developer with
a smaller scale development proposal, such as a low-income housing tax credit project, may find it
difficult to assemble the necessary sites.
Recognizing that General Plan Policy LU6.15.6 may result in a potential constraint to the
development of affordable housing in the Airport Area and consistent with Programs 3.2.2 and 3.2.3
of the 2008-2014 Housing Element, the City approved an amendment to the Newport Place Planned
Community (PC11) to eliminate the constraint on the smaller parcels located within Potential
Residential Village Sites 1 and 2. Specifically, the amendment permits residential development that
includes a minimum of 30 percent of the units affordable to lower-income households with the approval
of a Site Development Review. Developments meeting these criteria are also eligible for a waiver of the
minimum 10-acre site area requirement. The amendment also established minimum development
regulations including building height, setbacks, and parking requirements.
The City will continue to encourage affordable housing developers to collaborate with the developers
of the Uptown Newport and Koll developments. Within these developments, there may be
opportunities for these developers to integrate an affordable housing project. There may also be the
opportunity for agreements to develop the necessary affordable housing units for projects that utilize
a density bonus. City staff will also compile and provide a list of interested affordable housing
developers to current and future developers of residential villages within the Airport Area.
Adequacy of Parcel Sizes
Given the economies of scale, it is important that housing opportunity sites are of sufficient size to
facilitate the development of housing affordable to lower-income households. Based on information
received from HCD, most assisted housing developments utilizing State or federal financial resources
typically include at least 50 to 80 dwelling units. For the purpose of this discussion, a site that can
accommodate the construction of a minimum of 50 dwelling units shall be considered to be of
sufficient size for the development of lower-income housing. At the minimum density requirement of
30 du/ac, a minimum parcel size of 1.7 acres would be required. At a maximum density of 50 du/ac, a
minimum parcel size of one acre would be necessary.
As required by General Plan Policy LU6.15.6, a development site of a minimum of 10 acres will easily
facilitate the development of housing affordable to lower-income households; however, for projects
that include a minimum of 30 percent of the units affordable to lower-income households and are
eligible for a waiver from the lot assemblage requirements discussed above, it is necessary to evaluate
whether the individual parcels identified within the Sites Analysis and Inventory are of sufficient size
to facilitate the development of lower-income housing units (1.7 to 1 acre in size minimum).
There are over 22 separate parcels identified as housing opportunity sites within the Sites Analysis and
Inventory for the Airport Area. Of the 22 total parcels, 19 parcels are greater than 1 acre in size and
cumulatively have the potential to yield 4,712 dwelling units at a density of 50 du/ac. Also, of the 22
total parcels, there are 11 parcels greater than 1.7 acre in size and cumulatively have the potential to
yield 2,503 dwelling units at a density of 30 du/ac. The aforementioned development yields exceed
the 2,200-unit maximum development established by the General Plan for the Airport Area and
Housing Element Update Advisory Committee - July 15, 2020
Item No. V(c) - Attachment 5
Sites to Accommodate RHNA for Lower Income Households
Housing Element
Newport Beach General Plan5-78
clearly demonstrate there are an adequate number of sites of sufficient size within the Airport Area to
accommodate development of lower-income housing in the City.
Table H33 Airport Area Parcel Size Analysis
Airport Area
Residential
Village*
Total
Number of
Parcels
Number of
Parcels
Over 1 ac
Total Acres
Of Parcels
Over 1 ac
Development
Yield at 50
du/ac
Number of
Parcels
Over 1.7 ac.
Total Acres
Of Parcels
Over 1.7 ac
Development
Yield at 30
du/ac
1 8 6 11.65 582.5 4 9.47 284.1
2 10 9 15.8 790 3 7.16 214.8
3 2 2 41.79 2,089.5 2 41.79 1,253.7
4 2 2 25 1250 2 25 750
Total 22 19 94.24 4,712 11 83.42 2,502.6
*Based on the potential residential village areas identified within the Sites Analysis and Inventory
SOURCE: City of Newport Beach, 2010
ENERGY CONSERVATION OPPORTUNITIES
The City of Newport Beach fully enforces provisions of Title 24 of the California Administrative
Code, which require energy conservation in new residences. Standards in Title 24 create energy
savings of approximately 50 percent over residential construction practices utilized prior to the
Title 24 enactment.
The City of Newport Beach Building Division is knowledgeable about energy conserving design
innovations and solar technology. The department utilizes the Solar Systems Code Review Manual
and its companion document, the Pool and Spa Solar Systems Code Review Manual, published by the
International Code Council (ICC) to facilitate installation of appropriate solar systems.
Under existing state law (the California Resources Code), local jurisdictions may adopt structural
energy conservation standards in excess of the existing state standard. Such an increase in standards
would be of marginal value because of the moderate climate of the City of Newport Beach. A major
concern pertaining to energy conservation is the relationship of housing to employment and related
affected transportation modes. Although specific energy savings are difficult to quantify because of
the myriad of variables involved in a transportation system, it is generally true that physical proximity
between home and work saves transportation energy. Existing affordability concerns in Newport
Beach increase energy use by forcing workers employed within the City to seek less expensive housing
outside the City. New mixed-use development opportunities may help by reducing the length and
frequency of automobile trips and energy usage. However, the jobs/housing imbalance in the City
cannot be totally mitigated by increased residential development within the City.
Newport Beach is not in an area of geothermal or significant wind activity and consequently cannot
take advantage of these “alternative” energy sources. It appears that the City, through enforcement of
Title 24 and sensitivity to innovative design, is maximizing residential energy conservation
opportunities.
The City’s updated Natural Resources Element includes Policies NR 24.1, 24.2, 24.3, 24.4, and 24.5
which promote energy efficient construction for residential development and encourage the provision
of energy alternatives such as solar power. In addition, Housing Programs 4.2.1 through 4.2.5 in the
Housing Plan promote and encourage the improved energy efficiency of all housing types.
Housing Element Update Advisory Committee - July 15, 2020
Item No. V(c) - Attachment 5
Sites to Accommodate RHNA for Lower Income Households