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REPORT TO PLANNING COMMISSION
To:Honorable Chair and Members of the Planning Commission
From:Damaris Abraham, Assistant Community Development Director
Prepared by:Richard J. MacHott, Environmental Planner
Date:September 19, 2023
Subject:Planning Application No. 2023-28 (Zone Change No. 2023-03) – Amendment
to the Lake Elsinore Municipal Code, Title 17 (Zoning) Updating Chapter
17.58 Density Bonuses and Adding Chapter 17.78 No Net Loss Program
Applicant:City of Lake Elsinore
Recommendation
Adopt A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF LAKE ELSINORE,
CALIFORNIA, RECOMMENDING ADOPTION OF AMENDMENTS TO TITLE 17 OF THE LAKE
ELSINORE MUNICIPAL CODE RELATED TO DENSITY BONUSES AND ADDING A NO NET
LOSS PROGRAM.
Background
State Density Bonus Law
The State Density Bonus Law (Government Code Section 65915 et. seq.) was originally enacted
in 1979. In summary, it encourages applicants to construct affordable housing units in exchange
for an increase in density in a residential or mixed-use housing project, as long as the project
includes a certain percentage of affordable units at specified levels of affordability. The City
implements the State Density Bonus Law with Chapter 17.58 of the Lake Elsinore Municipal Code
(LEMC), which was adopted by the City Council on May 13, 2008 (Ordinance No. 1253).
Amendments to the state density bonus law from years prior to 2020, changed the City’s
obligations regarding granting density bonuses and concessions or incentives. The LEMC was
not updated to reflect those responsibilities and contains provisions that have been superseded
by changes in state law. More recently, Assembly Bill 2345 (AB 2345) which became effective
on January 1, 2021, further amended the State Density Bonus Law to expand and enhance
development incentives for projects with affordable and senior housing components.
PA 2023-28 (Density Bonus & No Net Loss Program)
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The Lake Elsinore Housing Element, adopted on August 23, 2022, includes Program 6 that
requires the City to maintain an affordable housing density bonus ordinance that establishes
procedures for obtaining and monitoring density bonuses in compliance with state law. Program
6 requires the City to update the density bonus ordinance to remain in compliance with
Government Code §65915 or update the City’s zoning regulations to cross reference the most
recent State laws governing density bonus provision.
Senate Bill 330 (No Net Loss)
On October 9, 2019, the Governor signed the Housing Crisis Act of 2019 (HCA) into law,
commonly known as Senate Bill 330 (SB 330) to respond to the California housing crisis. Senate
Bill (SB) 330, which became effective January 1, 2020, restricts the ability of cities and counties
to make the following changes related to land designated or zoned for residential uses:
•Change the general plan land use designation, specific plan land use designation, or
zoning of a parcel or parcels of property to a less intensive use.
•Reduce the intensity of land use within an existing general plan land use designation,
specific plan land use designation, or zoning district below what was allowed under the
land use designation and zoning ordinances in effect on January 1, 2018.
SB 330 provides that such changes can be made if the city either 1) obtains the Department of
Housing and Community Development's approval, or 2) the city "concurrently changes the
development standards, policies, and conditions applicable to other parcels within the jurisdiction
to ensure that there is no net loss in residential capacity."
The purpose of this ordinance is to establish a means to approve changes to the general plan or
specific plan land use designation or zoning of residential parcels to something less intense
without creating a "net loss in residential capacity". This will be accomplished through the creation
of a “unit bank” that will hold the residential unit development potential lost by land use or zoning
changes. Future residential projects may apply to receive a housing capacity transfer from the
unit bank in order to increase the maximum residential density for the development site.
Discussion
Proposed Revised Chapter 17.58 – Density Bonuses
The proposed revised Chapter 17.58 consists of six sections: Purpose, Definitions, Density Bonus
and Incentive Law, Processing of density bonus request, Density bonus agreement, and
Implementation.
Two sections, Section 17.58.030 (Density Bonus and Incentive Law) and Section 17.589.040
(Processing of density bonus request) incorporate by reference the provisions of the State Density
Bonus Law (Government Code Section 65915 et. seq.). Through its incorporation by reference
of the State Density Bonus Law, the proposed Chapter 17.58 contains provisions that will assure
that it complies with AB 2345 and that it will continue to remain in compliance even if the law is
changed in the future.
PA 2023-28 (Density Bonus & No Net Loss Program)
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Proposed Chapter 17.78 – No Net Loss Program
The proposed Chapter 17.78 allows for transfers of housing capacity between sites in the City.
Chapter 17.78 will create a "unit bank" that will receive the residential units being eliminated as a
result of any change in zone from a residential use to a less intensive residential or non-residential
use. A future residential development project may then submit an application for a transfer of any
dwelling units available in the unit bank in order to increase the maximum residential density
applicable to that project site.
For example, if the City Council changes the General Plan designation of a two-acre parcel from
Low-Medium Density Residential (with R-1 zoning) to General Commercial (with C-2 zoning) the
maximum number of residential units that could have been built under the Low-Medium Density
Residential designation (approximately 12 dwelling units) will be transferred into the unit bank. A
subsequent development project in a specified residential zone could then apply for a density
transfer to receive some or all the units in the unit bank. Once the units in the unit bank are
depleted, proposed projects would not be eligible for a density transfer under this program.
A Density Transfer Agreement will be required in conjunction with a proposed project to be eligible
to receive a density transfer under this program. Both the Planning Commission and City Council
will review the proposed Density Transfer Agreement.
Environmental Determination
The proposed amendments to the Lake Elsinore Municipal Code are exempt from the California
Environmental Quality Act (Cal. Publ. Res. Code §§21000 et seq. “CEQA”) and the State CEQA
Guidelines (14. Cal. Code Regs §§15000 et seq.), specifically pursuant to Sections 15060(c)(2),
15060(c)(3), and 15061(b)(3) of the State CEQA Guidelines because it will not result in a direct
or reasonably foreseeable indirect physical change in the environment, because there is no
possibility that it may have a significant effect on the environment, and because it is not a “project”
as that term is defined in Section 15378 of the State CEQA Guidelines.
Attachments
Attachment 1- ZC Resolution
Exhibit A - Chapter 17.58 - Density Bonuses
Exhibit B - Chapter 17.78 - No Net Loss Program
Attachment 2 - Notice of Public Hearing