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Home My WebLink About01 - Initiating an Amendment to Titles 20 and 21 of the NBMC Regarding the Housing Opportunity (HO) Overlay Zoning Districts (PA2024-0205)Q �EwPpRT CITY OF s NEWPORT BEACH `q44:09 City Council Staff Report November 19, 2024 Agenda Item No. 1 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: Rosalinh Ung, Principal Planner - 949-644-3208, rung@newportbeachca.gov TITLE: Resolution No. 2024-85: Initiating an Amendment to Titles 20 and 21 of the Newport Beach Municipal Code Regarding the Housing Opportunity (HO) Overlay Zoning Districts (PA2024-0205) h\ 3� d:7±Tip 6 For the City Council's consideration is the initiation of an amendment to the Housing Opportunity (HO) Overlay Zoning Districts in Title 20 (Planning and Zoning) and the pending Housing Opportunity (HO) Overlay Coastal Zoning Districts in Title 21 (Local Coastal Program Implementation Plan) of the Newport Beach Municipal Code (NBMC). Should the City Council choose to initiate the proposed amendment by adopting the attached resolution, the specific proposed changes will be considered by both the Planning Commission and the City Council at future public hearings. RECOMMENDATIONS: a) Determine this action exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15262 (Feasibility and Planning Studies) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3; and b) Adopt Resolution No. 2024-85, A Resolution of the City Council of the City of Newport Beach, California, Initiating an Amendment to the Housing Opportunity (HO) Overlay Zoning Districts in Title 20 (Planning and Zoning) and the Pending Housing Opportunity (HO) Overlay Coastal Zoning Districts in Title 21 (Local Coastal Program Implementation Plan) of the Newport Beach Municipal Code (PA2024-0205). DISCUSSION: On July 23, 2024, the City Council introduced Ordinance No. 2024-16 to establish the Housing Opportunity (HO) Overlay Zoning Districts and their corresponding development standards in Title 20 (Planning and Zoning) of the NBMC to allow residential developments on opportunity sites identified in the General Plan 6t" Cycle Housing Element (Housing Element). Ordinance No. 2024-16 was adopted on September 24, 2024, and made effective 30 days thereafter, creating Section 20.28.050 (Housing Opportunity [HO] Overlay Zoning Districts). 1-1 Resolution No. 2024-85: Initiating an Amendment to Titles 20 and 21 of the Newport Beach Municipal Code Regarding the Housing Opportunity Overlay Zoning Districts November 19, 2024 Page 2 Also on July 23, 2024, the City Council adopted Resolution No. 2024-52 authorizing the submittal of the complementary Local Coastal Program Amendment (LCPA) to the California Coastal Commission (CCC) to amend the City's Coastal Land Use Plan and Title 21 (Local Coastal Program Implementation Plan) of the NBMC to establish the Housing Opportunity (HO) Overlay Coastal Zoning Districts for properties located within the Coastal Zone. The City submitted its LCPA application on August 16, 2024, and received an incomplete letter on September 3, 2024. The City resubmitted with responsive information on September 19, 2024, and received a second incomplete letter on October 3, 2024. City staff is actively collaborating with CCC staff to provide clarification needed to mark the LCPA application complete. The City Council's actions provide new housing opportunities within five subareas in accordance with Housing Element Policy Actions 1A through 1G to ensure the City can meet its 6t" Cycle Regional Housing Needs Assessment (RHNA) allocation. These subareas correspond to the Focus Areas identified in the Housing Element and are as follows: Airport Area Environs Area (HO-1), West Newport Mesa Area (HO-2), Dover- Westcliff Area (HO-3), Newport Center Area (HO-4), and Coyote Canyon Area (HO-5). Properties identified within these areas are eligible for special development allowances intended to be conducive to residential development at the prescribed average density of 20 to 50 dwelling units per acre. These standards include but are not limited to minimum lot area, setbacks, height, open space, landscaping and parking. Since the adoption of Ordinance No. 2024-16 and Resolution No. 2024-52, City staff has met with several prospective developers, and it has become apparent that the established height limits applicable to some sites cannot accommodate the intended densities. For instance, the permitted building heights within HO-1 and HO-4 are limited to the height limits of the underlying base zoning district where maximum height limits range as high as 300 feet and as low as 30 feet. Due to the lower base height limits, an adjustment to allowable building heights within these subareas may be appropriate to accommodate residential developments with the intended prescribed density range. Furthermore, increased height limits will also help incentivize the provisions of increased public and private open space and enhanced landscaping. As part of the potential amendments, City staff will analyze and consider revisions to other development standards to ensure there are no other impediments to the development of the housing intended by the HO Overlay Zoning and Coastal Zoning Districts. FISCAL IMPACT: There is no fiscal impact related to this item. ENVIRONMENTAL REVIEW: The initiation of an amendment to Housing Opportunity (HO) Overlay Zoning and Coastal Zoning Districts is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15262 (Feasibility and Planning Studies) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential to have a significant effect on the environment. No final action on the amendment will occur at this meeting and the initiation of the amendment does not have any legally binding effect upon future consideration of the amendment itself. The City will conduct an environmental review prior to the consideration of approval of the amendments. 1-2 Resolution No. 2024-85: Initiating an Amendment to Titles 20 and 21 of the Newport Beach Municipal Code Regarding the Housing Opportunity Overlay Zoning Districts November 19, 2024 Page 3 NOTICING: The NBMC does not require notice for the initiation of amendments. Notice of this item appeared on the agenda for this meeting, which was posted at City Hall and on the City website. Should the City Council initiate the amendments, public notice will be provided for subsequent public hearings before the Planning Commission and the City Council as required by the NBMC. ATTACHMENT: Attachment A — Resolution No. 2024-85 1-3 ATTACHMENT A Resolution No. 2024-85 1-4 RESOLUTION NO. 2024- 85 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, INITIATING AN AMENDMENT TO THE HOUSING OPPORTUNITY (HO) OVERLAY ZONING DISTRICTS IN TITLE 20 (PLANNING AND ZONING) AND THE PENDING HOUSING OPPORTUNITY (HO) OVERLAY COASTAL ZONING DISTRICTS IN TITLE 21 (LOCAL COASTAL PROGRAM IMPLEMENTATION PLAN) OF THE NEWPORT BEACH MUNICIPAL CODE (PA2024-0205) WHEREAS, Section 20.66.020 of the Newport Beach Municipal Code ("NBMC") and City Council Policy K-1 provide that the City Council ("City Council") of the City of Newport Beach ("City ") may initiate an amendment to Title 20 (Planning and Zoning) and Title 21 (Local Coastal Program Implementation Plan) of the NBMC with or without a recommendation from the Planning Commission; WHEREAS, the City Council adopted Ordinance No. 2024-16 on September 24, 2024, approving an amendment to Title 20 (Planning and Zoning) of the NBMC, establishing the Housing Opportunity (HO) Overlay Zoning Districts to implement the General Plan 6th Cycle Housing Element ("Housing Element"); WHEREAS, the City Council adopted Resolution No. 2024-52 on July 23, 2024, authorizing submittal of Local Coastal Program Amendment to the California Coastal Commission to amend the City's Coastal Land Use Plan and Title 21 (Local Coastal Program Implementation Plan) of the NBMC to establish the Housing Opportunity (HO) Overlay Coastal Zoning Districts and their corresponding development standards applicable to properties located within the Coastal Zone of the City to implement the Housing Element; and WHEREAS, the City Council desires to review and make possible adjustments to certain development standards, including but not limited to building height limits specified in Table 2-16 (Development Standards for Housing Opportunity Overlay Zones) of Section 20.28.050 (Housing Opportunity (HO) Overlay Zoning Districts) and pending Table 21.28-1 (Development Standards for Housing Opportunity Overlay Zones) of the NBMC. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: 1-5 Resolution No. 2024- Page 2 of 3 Section 1: The City Council hereby initiates an amendment to Section 20.28.050 (Housing Opportunity (HO) Overlay Zoning Districts) and pending Section 21.28.070 (Housing Opportunity (HO) Overlay Coastal Zoning Districts) of the Newport Beach Municipal Code. Section 2: The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution. Section 3: If any section, subsection, sentence, clause or phrase of this resolution 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 resolution. The City Council hereby declares that it would have passed this resolution, 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 4: The City Council finds the adoption of this resolution is exempt from environmental review under the California Environmental Quality Act ("CEQA"), pursuant to Section 15262 of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it involves feasibility or planning studies for possible future actions which the agency, board, or commission has not approved or adopted. 1-6 Resolution No. 2024- Page 3 of 3 Section 5: This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting the resolution. ADOPTED this 19th day of November, 2024. Will O'Neill Mayor ATTEST: Leilani I. Brown City Clerk APPROVED AS TO FORM: CITY ATTORNEY'S OFFi E a on C. Harp City Attorney 1-7