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HomeMy WebLinkAboutPA2023-0040_20230427_Housing Implementation Plan and Density Bonus ApplicationPage | 1 1401 Quail – AFFORDABLE HOUSING IMPLEMENTATION PLAN 1401 QUAIL STREET, NEWPORT BEACH, CA 92660 AFFORDABLE HOUSING IMPLEMENTATION PLAN AND DENSITY BONUS APPLICATION SUBMITTED APRIL 27, 2023 Page | 2 1401 Quail – AFFORDABLE HOUSING IMPLEMENTATION PLAN Project Description & Affordability Level The developer, Intracorp Homes (“Developer”) is proposing the 1401 Quail Street residential development (described herein as “1401 Quail Street”) on a 1.71 net acre site located in the Newport Place area. The site is located west of the intersection of Quail Street and Spruce Avenue. The project site is governed by the Newport Place Specific Plan, which allows for a density of 30 dwelling units per acre under its Residential Overlay. The site is currently not under the Residential Overlay, but the application includes an amendment to the Planned Community text to include it. A minimum of 30% of the base units shall per set aside as affordable to lower-income households and subject to a 30-year affordability covenant. The Specific Plan defines lower-income households as those making less than 80% of the area median income, as adjusted for family size by the United States Department of Housing and Urban Development. The development will consist of 78 residential units, 16 of which will be set aside for Low Income households. Eligibility for Density Bonus The 1401 Quail Street development will provide 16 units affordable to Low Income households, 30% of the Base Units as outlined in Table 1. This will comply with the provisions of Government Code Section 65915 applicable to a 50% density bonus. Homes Prices for the Low Income units will be computed in accordance with Health and Safety Code Sec. 50053, as required by Government Code Section 65915(c)(2). Density Bonus Computation and Term of Affordability The density bonus computation for the project per Government Code Section 65915 is shown in Table 1: Table 1 DENSITY BONUS COMPUTATION Project Area (acres) 1.71 Allowable Density (du/ac) 30 Allowable Residential Units Before Density Bonus (Base Units) 52 Low Income Units Set Aside (30% of base) 16 Eligible Density Bonus (50%) 26 Total Units 78 The Developer intends to build the project as a for-sale community. The 16 Low Income units will have affordability restrictions on the sale and conveyance of the units for a minimum of 45 years, per Government Code Section 65915(c)(2). Page | 3 1401 Quail – AFFORDABLE HOUSING IMPLEMENTATION PLAN Reduction in Parking The 1401 Quail Street development meets the criteria of subdivision (b) of Government Code Sec. 65915 and Section 20.32.030 of the City’s Zoning Code by providing more than ten percent (10%) of the total units of a housing development (excluding any units permitted by the density bonus awarded pursuant to that section) for Low Income households. Government Code Section 65915(p) and Section 20.32.060 of the City’s Zoning Code provides the following: (1) Upon the request of the developer, no city, county, or city and county shall require a vehicular parking ratio, inclusive of handicapped and guest parking, of a development meeting the criteria of subdivision (b), that exceeds the following ratios: a. Zero to one bedrooms: one onsite parking space. b. Two to three bedrooms: one and one-half onsite parking spaces. (2) If the total number of parking spaces required for a development is other than a whole number, the number shall be rounded up to the next whole number. Table 2 is a summary of Government Code Sec. 65915 parking requirements vs. spaces to be provided: Table 2 UNIT TYPE NUMBER OF UNITS STALLS/UNIT PER GOV. CODE TOTAL STALLS PER GOV. CODE 1 Bedroom 18 1.00 18 2 Bedroom 31 1.50 46.5 3 Bedroom 29 1.50 43.5 Total 78 1.38 108 Total Parking Stalls Provided 1.97 159 The Developer requests that parking requirements be calculated in accordance with Government Code Sec. 65915(p). Development Incentive Request Pursuant to Government Code Section 65915(d)(1) and Section 20.32.070 of the City’s Zoning Code, the Developer is entitled to three (3) concessions or incentives as a result of providing at least twenty-four percent (24%) of the units as affordable for Low Income households. In addition, Government Code Section 65915(e)(1) also entitles developers to waivers or modifications of development standards that if applied, would physically preclude development of housing with the provided density bonus. Page | 4 1401 Quail – AFFORDABLE HOUSING IMPLEMENTATION PLAN The Developer requests the following development incentives: 1) Section 20.32.110 of the City’s Municipal Code provides that “Affordable units shall reflect the range of numbers of bedrooms provided in the residential development project as a whole.” Developer requests that the 16 Low Income units be provided utilizing the following unit mixes: Table 3 UNIT TYPE NUMBER OF UNITS TOTAL AFFORDABLE UNITS 1 Bedroom 18 16 2 Bedroom 31 0 3 Bedroom 29 0 Total 78 16 2) Developer requests relief from street setback requirements 3) Developer requests relief from building height requirements Section 20.32.080 of the City’s Municipal Code provides that “In addition to requesting an incentive or concession, an applicant for a density bonus may also submit a proposal to the City to waive or reduce an unlimited number of development standards that would otherwise preclude or inhibit construction of the housing development at the densities or with the incentives permitted by this chapter. When an applicant makes a request for a waiver, the review authority shall grant the request unless any of the following findings are made: 1) The waiver or reduction of development standards would have a specific adverse impact upon public health or safety, and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact. 2) The waiver or reduction of development standards would have an adverse impact on any real property listed in the California Register of Historical Resources. 3) The waiver or reduction of development standards would be contrary to State or Federal law.” The Developer proposes the following development standard waivers: 1) Waiver of Park dedication requirement 2) Waiver of Park In-lieu Fee Payment As required by Government Code Sec. 65915(d)(1)(A), these incentives will result in identifiable and actual cost reductions to provide for the affordable housing payments to be set in accordance with Government Code Sec. 65915(c)(2). Income Limits Low Income Households are defined as households whose gross income does not exceed 70% of area median income, adjusted for household size. Table 4 below shows the maximum income limits for 2022 Page | 5 1401 Quail – AFFORDABLE HOUSING IMPLEMENTATION PLAN (effective through Spring 2023) as determined by the U.S. Department of Housing and Urban Development and the California Department of Housing and Community Development (“HCD”) for Low Income households with household sizes appropriate for the 1401 Quail Street development: Table 4 AFFORDABLE HOUSING COMPUTATION Orange County Median Income (2-Person Household) $95,300 Low Income (70% AMI) $66,710 Housing Payment Limits for Affordable Homes The 16 Low Income units shall be purchase at an affordable cost calculated in accordance with the provisions of Section 50053 of the Health and Safety Code. Section 50053 of the Health and Safety Code limits affordable rent to 30% of total income for a Low Income household, as calculated in Table 5 below. That section also requires that the housing payment for a one-bedroom unit assumes a two- person household for housing payment calculation purposes. The values calculated are then adjusted by a utility allowance as determined annually by the County of Orange Housing & Community Services Department. As of October 1, 2022, the reduction for the utility allowance is $151.00 per month for a one-bedroom unit. The utility allowance utilized assumes gas cooking, space heating, and water heating, as well as air conditioning, water, and sewer, and trash fees which will be paid by the tenant. The maximum housing payment levels for 2022 are shown in Table 5 below: Table 5 UNIT TYPE GROSS INCOME MAXIMUM ANNUAL PAYMENT MAXIMUM MONTHLY PAYMENT UTILITY ALLOWANCE AFFORDABLE HOUSING PAYMENT 1 Bedroom $66,710 $20,013 $1,668 $151 $1,517 The Developer will enter into an affordable housing agreement, in recordable form, with the City prior to obtaining the first building permit for any residential unit. That agreement will ensure that the maximum housing payment for the Low Income units will be calculated using the methodologies as utilized in Table 5. The housing payment rates shown will be updated prior to the commencement of rental activities and on an ongoing basis to reflect then current income limits, utility allowances, and any changes in applicable regulations and statutes. Requested City of Newport Beach Assistance Financial Assistance The Developer is not requesting any direct financial assistance from the City of Newport Beach for this project.