HomeMy WebLinkAbout05 - Title 21 of the NBMC Updating Density Bonus Regulations to Comply with State Law (PA2020-032)Q SEW Pp�T
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z NEWPORT BEACH
c�<,FORN'P City Council Staff Report
September 24, 2024
Agenda Item No. 5
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Seimone Jurjis, Assistant City Manager/Community Development
Director - 949-644-3232, sjurjis@newportbeachca.gov
PREPARED BY: Jaime Murillo, AICP, Deputy Community Development Director -
949-644-3209, jmurillo@newportbeachca.gov
TITLE: Ordinance No. 2024-21: Title 21 of the Newport Beach Municipal
Code Updating Density Bonus Regulations to Comply with State Law
(PA2020-032)
ABSTRACT:
For the City Council's consideration is adoption of Ordinance No. 2024-21, which amends
Title 21 (Local Coastal Program Implementation Plan) of the Newport Beach Municipal Code
(NBMC) to incorporate regulations pertaining to density bonuses with housing development
as required and necessary to ensure compliance with California Government Code Section
65915, et. seq. (Density Bonuses and Other Incentives) and to clarify the applicability of
density bonuses, waivers and incentives to properties in the coastal zone. The ordinance
was introduced and considered at the September 10, 2024, City Council meeting.
RECOMMENDATIONS:
a) Find this project exempt from the California Environmental Quality Act (CEQA)
pursuant to Section 15061(b)(3), the general rule that CEQA applies only to projects
which have the potential to have a significant effect on the environment; and
b) Conduct second reading and adopt Ordinance No. 2024-21, An Ordinance of the City
Council of the City of Newport Beach, California, Adopting Local Coastal Program
Amendment No. LC2020-004, as Modified by the California Coastal Commission,
Amending Title 21 (Local Coastal Program Implementation Plan) of the Newport
Beach Municipal Code Related to Density Bonuses Standards, to Comply with State
Law (PA2020-032).
DISCUSSION:
The State of California enacted the Density Bonus Law (DBL), codified as California
Government Code Sections 65915-65918, to encourage the development of affordable
and special needs housing. This law provides a set of incentives to make such
developments economically feasible. To achieve this, DBL requires local agencies to
grant an increase in the maximum allowable residential density, allowing developers to
offset the cost of affordable units by spreading it across market -rate units.
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Ordinance No. 2024-21: Title 21 of the Newport Beach Municipal Code
Updating Density Bonus Regulations to Comply with State Law (PA2020-032)
September 24, 2024
Page 2
The law supports eligible projects at higher densities by offering development incentives
and concessions, waivers or reductions in applicable development standards, and
reduced parking ratios. When a density bonus is requested, developments must include
a minimum percentage of affordable units designated for low- and moderate -income
households, with affordability maintained for at least 55 years.
All cities in California are required to comply with DBL regulations, and each city must
adopt an ordinance specifying how it will meet State requirements.
At the August 23, 2022, City Council meeting, the Council adopted Resolution No. 2022-
56, authorizing the submittal of Local Coastal Program (LCP) Amendment No. LC2020-
004 to the California Coastal Commission (CCC) for review and approval. The resolution
stipulated that LCP Amendment No. LC2020-004 would not become effective until it
received approval from the CCC and was adopted by the City Council, including any
modifications suggested by the CCC, through resolution or ordinance.
On April 12, 2024, the CCC approved the LCP Amendment with suggested modifications.
At the September 10, 2024, City Council meeting, the Council introduced Ordinance
No. 2024-21 and held a public hearing. No further amendments were requested, and the
ordinance, which incorporates the CCC's suggested modifications and regulations related
to density bonuses within the coastal zone, is now presented for City Council adoption. If
adopted, the ordinance will be sent back to the CCC for final acceptance.
FISCAL IMPACT:
There is no fiscal impact related to this item
ENVIRONMENTAL REVIEW:
The action proposed herein is exempt from the California Environmental Quality Act
(CEQA) pursuant to Section 15061(b)(3), the general rule that CEQA applies only to
projects, which have the potential for causing a significant effect on the environment. The
amendment specifies how the City will comply with and implement DBL, and adoption is
required pursuant to Government Code Section 65915. The bonuses, incentives and
waivers permitted by the ordinance are already allowed pursuant to DBL. The code
amendment is further exempt from CEQA pursuant to Section 15265(a)(1), which
exempts local governments from the requirements of CEQA in connection with the
adoption of a Local Coastal Program.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
Attachment A — Ordinance No. 2024-21
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Attachment A
Ordinance No. 2024-21
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ORDINANCE NO. 2024-21
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH, CALIFORNIA, ADOPTING LOCAL
COASTAL PROGRAM AMENDMENT NO. LC2020-004, AS
MODIFIED BY THE CALIFORNIA COASTAL
COMMISSION, AMENDING TITLE 21 (LOCAL COASTAL
PROGRAM IMPLEMENTATION PLAN) OF THE
NEWPORT BEACH MUNICIPAL CODE RELATED TO
DENSITY BONUS STANDARDS, TO COMPLY WITH
STATE LAW (PA2020-032)
WHEREAS, Section 200 of the City of Newport Beach ("City") Charter vests the
City Council with the authority to make and enforce all laws, rules and regulations with
respect to municipal affairs subject only to the restrictions and limitations contained in
the City Charter and the State Constitution, and the power to exercise, or act pursuant
to any and all rights, powers, and privileges or procedures granted or prescribed by any
law of the State of California;
WHEREAS, Section 30500 of the California Public Resources Code requires
each county and city to prepare a local coastal program ("LCP") for that portion of the
coastal zone within its jurisdiction;
WHEREAS, the City adopted the City of Newport Beach Local Coastal Program
Coastal Land Use Plan ("Coastal Land Use Plan") in 2005, which has been amended
from time to time;
WHEREAS, the California Coastal Commission ("Coastal Commission")
effectively certified the City' s Local Coastal Program Implementation Plan on January
13, 2017, and the City added Title 21 (Local Coastal Program Implementation Plan)
("Title 21") to the City of Newport Beach Municipal Code ("NBMC") whereby the City
assumed coastal development permit -issuing authority on January 30, 2017;
WHEREAS, Chapter 20.32 (Density Bonus) of the NBMC sets forth the City's
requirements for granting density bonuses in compliance with California Government
Code Section 65915 et seq. ("State Density Bonus Law");
WHEREAS, the City Council adopted Ordinance No. 2022-18 on September 13,
2022, updating density bonus standards for compliance with the State Density Bonus
Law;
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Ordinance No. 2024-
Page 2 of 5
WHEREAS, the City desires to add Chapter 21.32 (Density Bonus) of the NBMC
in furtherance of Policy Action 4C (Density Bonus and Incentives for Affordable
Housing) of the 2021-2029 6th Cycle Housing Element to ensure consistency between
the State Density Bonus Law and the Coastal Act;
WHEREAS, the City Council initiated Local Coastal Program Amendment No.
LC2020-004 ("LCP Amendment No. LC2020-004") on April 14, 2020, pursuant to
Resolution No. 2020-36;
WHEREAS, pursuant to Section 13515 (Public Participation and Agency
Coordination Procedures) of the California Code of Regulations Title 14, Division 5.5,
Chapter 8, Subchapter 2, Article 5 ("Section 13515"), drafts of LCP Amendment No.
LC2020-004 were made available and a Notice of Availability was distributed at least six
weeks prior to the anticipated final action date;
WHEREAS, the Planning Commission opened the public hearing to consider
LCP Amendment No. LC2020-004 on July 7, 2022, and continued the hearing to July
21, 2022 in the Council Chambers located at 100 Civic Center Drive, Newport Beach,
California. A notice of time, place and purpose of the public hearings was given in
accordance with Government Code Section 54950 et seq. ("Ralph M. Brown Act") and
Chapter 21.62 (Public Hearings) of the NBMC;
WHEREAS, at the continued hearing on July 21, 2022, evidence, both written
and oral, was presented to, and considered by, the Planning Commission;
WHEREAS, at the conclusion of the continued hearing, the Planning
Commission adopted Resolution No. PC2022-019 by a unanimous vote (7 ayes, 0
nays), recommending approval of LCP Amendment No. LC2020-004 to the City
Council;
WHEREAS, a duly noticed public hearing was held by the City Council on
August 23, 2022, in the Council Chambers located at 100 Civic Center Drive, Newport
Beach, California. A notice of time, place and purpose of the public hearing was given in
accordance with the Ralph M. Brown Act and Chapter 21.62 (Public Hearings) of the
NBMC and Section 13515. Evidence, both written and oral, was presented to, and
considered by, the City Council at this public hearing;
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Ordinance No. 2024-
Page 3 of 5
WHEREAS, the City Council adopted Resolution No. 2022-56 by unanimous
vote (6 ayes, 0 nays) on August 23, 2022, authorizing staff to submit LCP Amendment
No. LC2020-004 to the Coastal Commission to add Chapter 21.32 (Density Bonus) to
Title 21 of the NBMC;
WHEREAS, the Coastal Commission approved and certified LCP Amendment
No. LC2020-004, with modifications (LCP-5-NPB-22-0056-1 Part A), as being
consistent with the California Coastal Act at its April 12, 2024, meeting; and
WHEREAS, the City Council held a public hearing on September 10, 2024, in
the Council Chambers located at 100 Civic Center Drive, Newport Beach, California. A
notice of time, place and purpose of the public hearing was given in accordance with the
Ralph M. Brown Act and Chapter 21.62 (Public Hearings) of the NBMC. Evidence, both
written and oral, was presented to, and considered by, the City Council at this public
hearing.
NOW THEREFORE, the City Council of the City of Newport Beach ordains as
follows:
Section 1: The City Council hereby adopts LCP Amendment No. LC2020-004
adding Chapter 21.32 (Density Bonus) of the NBMC as modified by the Coastal
Commission and set forth in Exhibit "A."
Section 2: The LCP, including LCP Amendment No. LC2020-004, will be
carried out fully in conformity with the California Coastal Act.
Section 3: The recitals provided in this ordinance are true and correct and are
incorporated into the substantive portion of this ordinance.
Section 4: The City Council hereby authorizes City staff to submit this
ordinance for a determination by the Executive Director of the Coastal Commission that
this action is legally adequate to satisfy the specific requirements of the Coastal
Commission's April 12, 2024, action on LCP Amendment Request No. LCP-5-NPB-22-
0056-1 Part A) (Density Bonus Regulations).
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Ordinance No. 2024-
Page 4 of 5
Section 5: This ordinance shall become effective after the Executive Director
of the Coastal Commission certifies that this ordinance complies with the Coastal
Commission's April 12, 2024, action on LCP Amendment Request No. LCP-5-NPB-22-
0056-1 Part A) (Density Bonus Regulations); and thirty (30) calendar days, or more,
have passed since the adoption of this ordinance.
Section 6: If any section, subsection, sentence, clause or phrase of this
ordinance is for any reason held to be invalid or unconstitutional, such decision shall not
affect the validity or constitutionality of the remaining portions of this ordinance. The
City Council hereby declares that it would have passed this ordinance and each section,
subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or
more sections, subsections, sentences, clauses or phrases be declared invalid or
unconstitutional.
Section 7: The City Council finds the adoption of this ordinance is exempt from
environmental review under the California Environmental Quality Act ("CEQA") pursuant
to Section 21065 of the California Public Resources Code and Sections 15060 (c)(2),
15060 (c)(3), and 15378 of the California Code of Regulations Title 14, Division 6,
Chapter 3 ("CEQA Guidelines"). This action is also exempt under CEQA Guidelines
Section 15061(b)(3), which states that CEQA applies only to projects which have the
potential for causing a significant effect on the environment. Lastly, pursuant to CEQA
Guidelines Section 15265(a)(1), local governments are exempt from the requirements of
CEQA in connection with the adoption of a Local Coastal Plan amendment. Local
Coastal Plan Amendment No. LC2020-004 itself does not authorize development that
would directly result in physical change to the environment.
Section 8: Except as expressly modified in this ordinance, all other sections,
subsections, terms, clauses and phrases set forth in the NBMC shall remain unchanged
and shall be in full force and effect.
Section 9: The Mayor shall sign and the City Clerk shall attest to the passage
of this ordinance. The City Clerk shall cause the ordinance, or a summary thereof, to be
published pursuant to City Charter Section 414.
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Ordinance No. 2024-
Page 5 of 5
This ordinance was introduced at a regular meeting of the City Council of the City
of Newport Beach held on the 10th day of September, 2024, and adopted on the 24th
day of September, 2024, by the following vote, to -wit:
AYES:
NAYS:
ABSENT:
WILL O'NEILL, MAYOR
ATTEST:
LEILANI I. BROWN, CITY CLERK
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
AARON ARP, UITY ATTORNEY
Attachment: Exhibit A - Local Coastal Program Amendment No. LC2020-004
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Exhibit A
Local Coastal Program Amendment No. LC2020-004
Section 1: Subsection (C)(1) of Section 21.12.020 (Rules of Interpretation) of Chapter
21.12 (Interpretation of Implementation Plan Provisions) of Title 21 (Local Coastal Program
Implementation Plan) of the NBMC is hereby amended to read as follows:
C. Calculations.
Residential Density. Except for projects that include a density bonus in accordance with
Chapter 21.32 (Density Bonus), when the number of dwelling units allowed on a site is
calculated based on the minimum site area per dwelling unit, any fraction of a unit shall be
rounded down to the next lowest whole number. For example, where a residential zoning
district requires a minimum site area per dwelling unit of one thousand five hundred (1,500)
square feet, a site of ten thousand (10,000) square feet would be allowed six (6) dwelling
units (10,000 sq. fIJ1,500 sq. ft. per dwelling unit = 6.66 dwelling units, which is rounded
down to six dwelling units).
Section 2: Chapter 21.32 (Density Bonus) of Title 21 (Local Coastal Program
Implementation Plan) of the NBMC is hereby added to read as follows:
Chapter 21.32
DENSITY BONUS
Sections:
21.32.010 Purpose.
21.32.020 Coastal Act Consistency.
21.32.030 Density Bonus, Concessions, Incentives, and Waivers.
21.32.040 Approval Process.
21.32.010 Purpose.
The purpose of this chapter is to provide a means for granting density bonuses and incentives
in compliance with State Density Bonus Law, Government Code Sections 65915 et. seq., as
the same may be amended from time to time.
21.32.020 Coastal Act Consistency.
A. California Government Code Section 65915(m) provides that density bonus law shall not
be construed to supersede or in any way alter or lessen the effect or application of the
California Coastal Act of 1976. Any density bonus, concessions, incentives, waivers or
reductions of development standards, and parking ratios to which the applicant is entitled
under California State Government Code Section 65915 et. seq., shall be permitted in a
manner that is consistent with that section and the California Coastal Act of 1976 (Division
20 (commencing with Section 30000) of the Public Resources Act Code).
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B. A requested density bonus and any requested incentive, concession, waiver, modification,
or modified parking standard shall comply with all applicable standards and use regulations
of the certified Local Coastal Program Implementation Plan, with the exception of the
development standards waived, reduced, or modified through density bonus provisions. In
no case shall the coastal resource protection development regulations of Sections
21.28.040 (Bluff (B) Overlay District), 21.28.050 (Canyon (C) Overlay District), 21.30.015(D)
(Waterfront Development), 21.30.015(E)(2) (Development in Shoreline Hazardous Areas)
and 21.30.100 (Scenic and Visual Quality Protection), or Chapters 21.30A (Public Access
and Recreation) and 21.30B (Habitat Protection) be waived, reduced, or modified.
21.32.030 Density Bonuses, Concessions, Incentives, and Waivers
Unless restricted by Section 21.32.020 (Coastal Act Consistency), eligible housing
development or mixed -use development projects may be granted density bonuses,
concessions, incentives, and waivers pursuant to California State Government Code Section
65915 et. seq., which may be amended from time to time.
21.32.040 Approval Process.
An applicant requesting a density bonus, incentive, concession, or waiver pursuant to this
chapter shall require approval of a coastal development permit or waiver pursuant to Chapter
21.52 (Coastal Development Review Procedures).
Section 3: Section 21.70.020 (Definitions of Specialized Terms and Phrases) of Title 21
(Local Coastal Program Implementation Plan) of the NBMC is amended as follows with all other
definitions to remain unchanged:
"Density bonus" means a density increase over the maximum allowable density under the
applicable coastal zoning district and Coastal Land Use Plan as of the date of application.
Section 4: The definitions of "affordable housing agreement," "low-income household,"
"moderate -income household," and "very low-income household" in Section 21.70.020
(Definitions of Specialized Terms and Phrases) of Title 21 (Local Coastal Program
Implementation Plan) are deleted in their entirety.
Section 5: Footnote 7 of Table 21.18-4 of Section 21.18.030 (Residential Coastal Zoning
Districts General Development Standards) of Title 21 (Local Coastal Program Implementation
Plan) of the NBMC is amended as follows:
(7) Density bonuses may be granted in compliance with Chapter 21.32 (Density Bonus).
Sections 6: Footnote 6 of Table 21.22-3 of Section 21.22.030 (Mixed -Use Coastal Zoning
Districts General Development Standards) of Title 21 (Local Coastal Program Implementation
Plan) of the NBMC is amended as follows:
(6) Density bonuses may be granted in compliance with Chapter 21.32 (Density Bonus).
Sections 7: Footnote 7 of Table 21.22-4 of Section 21.22.030 (Mixed -Use Coastal Zoning
Districts General Development Standards) of Title 21 (Local Coastal Program Implementation
Plan) of the NBMC is amended as follows:
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(7) Density bonuses may be granted in compliance with Chapter 21.32 (Density Bonus).
Section 8: Subsection (E)(1) of Section 21.30A.050 (Development Standards) of Chapter
21.30A (Public Access and Recreation) of Title 21 (Local Coastal Program Implementation Plan)
of the NBMC is hereby amended to read as follows:
E. Parking
1. Off -Street Parking Spaces Required. Any required off-street parking spaces shall be provided
in compliance with Chapter 21.40 (Off -Street Parking). However, modifications to these standards
may be permitted pursuant to Chapter 21.32 (Density Bonus) in situations where reduced parking
requirements would not significantly impact public access to the shoreline.
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