Laguna Beach City Zoning Code
CHAPTER 25
96 HOUSING PROGRAMS AND INCENTIVES
§ 25.96.010 Density bonuses.
(A)
Purpose. The purpose of Section 25.96.010 is to allow density bonuses and other affordable housing incentives to qualifying projects in accordance with State law.
(B)
Density Bonus and Affordable Housing Incentives. The density bonuses and other affordable housing incentives required by State law, including, but not limited to, Government Code Section 65915 et seq., shall be available to applicants on the terms and conditions specified in State law.
(C)
Coastal Act Consistency. California Government Code Section 65915 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 those sections and the California Coastal Act of 1976 (Division 20 (commencing with Section 30000) of the Public Resources Code), except to the extent that state law specifically limits consideration of density bonus benefits in consistency analyses pursuant to Gov. Code § 65913.4(t).
(D)
Within the Coastal Zone, the approving body (or the Coastal Commission on appeal) may approve a project that deviates from local coastal program (LCP) requirements relating to additional units and/or concessions, waivers, and/or incentives where such deviations emanate from state density bonus law provisions (Government Code Section 65915 et. seq.), if the following criteria are met:
(1)
The project (including but not limited to additional units and/or concessions, waivers, and/or incentives) is consistent with Government Code Section 65915; and
(2)
The project is found to be in conformity with all LCP provisions requiring avoidance of significant coastal resource impacts (including but not limited to impacts to sensitive habitat, agriculture, public viewsheds, public recreational access, and open space). To make such a finding, an analysis of coastal resource impacts associated with the density bonus project (and any alternatives) shall be provided. Such analysis shall include a comparison of the project (including with any concessions/waivers/incentives and/or increases in otherwise allowable density applied) with an LCP-consistent alternative (i.e., one without any such deviations applied that meets all LCP requirements) that clearly identifies all LCP deviations, coastal resource impacts associated with such deviations, and affordable housing benefits being provided.
(E)
By January 1, 2028, the City shall submit to the Coastal Commission South Coast District Office a Local Coastal Program Amendment application to establish citywide multifamily objective design standards that would apply to projects that qualify for streamlined review under Government Code Section 65913.4.
(Ord. 1712, 3/11/2025)
§ 25.96.020 Lot consolidation incentives.
(A)
Intent and Purpose.
(1)
The City intends to encourage the development of affordable housing and senior citizen housing by allowing property owners to consolidate smaller lots into larger lots for certain qualifying projects.
(2)
An applicant may request lot consolidation incentives at the time a lot line adjustment application is filed with the City pursuant to the requirements of Section 21.08.030.
(3)
All requested incentives shall be granted as a matter of right for qualifying projects with the exception of when a coastal development permit is required pursuant to Chapter 25.07.
(B)
Qualifying Projects.
(1)
The following projects are permitted to consolidate smaller lots into larger lots in accordance with the provisions of this Section: (1) a one hundred percent affordable housing rental or ownership development project; and (2) a one hundred percent senior citizen housing development project.
(a)
For purposes of this Section, "one hundred percent affordable housing rental or ownership development project" and "one hundred percent senior citizen housing development project" includes mixed-use projects containing ground floor commercial provided the residential square footage is at least eighty-five percent of the project's gross floor area.
(b)
For purposes of this Section, a "one hundred percent senior citizen housing development project" means that each housing unit shall consist only of occupants who are senior citizens fifty-five years of age or older. Notwithstanding the foregoing, a housing unit may consist of one occupant who is a senior citizen fifty-five years of age or older and one occupant who is not a senior citizen so long as the occupant who is not a senior citizen is at least forty-five years of age or older and providing primary physical or economic support to the qualifying senior citizen.
(2)
The housing units will be deed-restricted as either one hundred percent affordable housing units for no fewer than thirty-five years, restricting housing costs to levels of extremely low-, very low-, low-, and moderate-income households, or deed-restricted as one hundred percent senior citizen housing development units for no fewer than thirty-five years.
(3)
All parcels proposed to be merged are located in one or more of the following zones, only: R-3, Residential High Density; LBP, Local Business-Professional; C-N, Commercial-Neighborhood; C-1, Local Business District; CH-M, Commercial Hotel-Motel; SLV, South Laguna Village Commercial; and I, Institutional.
(4)
The proposed lot consolidation would not exceed a total lot size of twenty-five thousand square feet.
(C)
Lot Consolidation Incentives. Qualifying projects are eligible for any and all of the following incentives:
(1)
Setbacks. A setback reduction of up to five feet is allowed from a required front, rear, or side yard requirement, except when adjacent to existing single-family and two-family residential. The setback reduction may be increased to ten feet if at least twenty-five percent of the housing units are restricted to very low- or extremely low-income households. This incentive shall not be applied in a manner that reduces a required watercourse, bluff edge, or shoreline setback.
(2)
Parking. Required parking for all residential units in the project, inclusive of accessible and guest parking spaces, shall be reduced to 0.5 spaces per unit. The approval authority may further reduce or waive the parking requirement if a peer-reviewed parking study finds that the proposed project adequately provides for and promotes the use of alternative modes of transportation such as ride-sharing, carpools, vanpools, public transit, bicycle, and walking, and where the reduced parking requirement will not adversely impact public access to beaches, parks, open spaces, and trails.
(3)
Open Space. Reduction in common and/or private open space requirements, up to a maximum of fifty percent. The open space reduction may be increased to seventy percent if at least twenty-five percent of the housing units are restricted to very low- or extremely low-income households.
(4)
Building permit and planning application fees. All City building permit and planning application fees for the development of the one hundred percent affordable housing rental or ownership development project shall be refunded following the final inspection and finalization of the building permit. This refund does not include any development impact fees or direct costs for consultant fees associated with project review, including any peer reviews, except as expressly authorized with a development agreement. Subsequent projects to enlarge, alter, or reconstruct the project are not eligible for refund.
(Ord. 1712, 3/11/2025)
§ 25.96.030 Infill and mixed-use housing projects.
(A)
Intent and Purpose. The City intends to promote housing production in the City's mixed-use zones and to implement the goals, objectives, policies, and programs of the City's Housing Element. Mixed-use development, including infill housing on sites with existing commercial buildings, expands the City's mix of housing types, including additional rental housing opportunities. Further, it promotes a village-style mix of resident-serving businesses to serve the resident population, enhances vitality, reduces auto dependency, and promotes more efficient use of land and infrastructure.
(B)
Applicability. The following exceptions from the development standards shall apply to the C-N, C-1, and SLV zoning districts only.
(C)
Development standard exceptions. Provided that the property owner agrees to enter into a recorded covenant with the City, ensuring that the residential units will not be converted to short-term lodging units as defined in Chapter 25.23, the following development standard exceptions shall apply. The covenant shall be in a form approved by the City Attorney and binding upon all future owners and successors in interest. The approval and recordation shall occur prior to issuance of building permits.
(1)
Additional Building Setback Waiver. Compliance with the additional building setback required by Section 25.50.004(D) shall be waived for no more than two exclusively residential floor levels that provides two or more residential units immediately above the ground floor, provided that the following conditions are met:
(a)
At least half of these residential units, rounded to the nearest whole number, do not exceed 700 square feet in gross floor area (halves are rounded up); and
(b)
The residential plate height does not exceed nine feet and, if the residential floor level is also the uppermost floor, the roof height does not exceed 16 feet above the residential finished floor.
(2)
Nonconforming Open Space. Residential uses that are proposed above an existing commercial ground floor level may reduce the nonresidential open space required by the zoning district in which the project is located only as necessary to accommodate access improvements, bicycle storage, and trash storage serving the residential use.
(3)
Nonconformities - Major Remodel. Residential additions that constitute a major remodel of an existing building or structure shall not be required to bring nonconformities associated with the non-residential use or uses into compliance with this Title, including nonconforming parking, provided that the project constitutes a major remodel due to the size of the floor area addition only. This exception does not apply when a project meets one or more of the major remodel demolition thresholds, and in no instance shall this exception be interpreted to relieve projects from compliance with bluff and shoreline development policies, including but not limited to Policy 7.3 and Policy 10.2 of the Land Use Element or the associated action items.
(Ord. 1712, 3/11/2025)
§ 25.96.040 Home occupations.
(A)
Intent and Purpose. The City intends to further community goals for connecting jobs and housing in a compact way, with potential benefits including greater home affordability and sustainability, reduced costs of childcare, and supporting entrepreneurial opportunities and the creation of new businesses. The requirements of this section are also intended to ensure that home occupations remain subordinate to the residential use, that the residential viability of the dwelling is maintained, and that the use will not be a detriment to the character and livability of the surrounding neighborhood. Finally, these requirements respond to the unique needs of the resident artist community by maximizing flexibility for artists proposing to create their work at home.
(B)
Allowed Uses. The following are deemed appropriate business activities when conducted by the occupants of a dwelling and their employees in a manner accessory to the primary residential use and compatible with the characteristics of the surrounding neighborhood. Home occupations may be allowed within a conforming or legal, nonconforming residential use and shall be limited to the following activities.
(1)
Art and craft work, including ceramics, painting, photography, and sculpture. Direct retail sales are allowed at the premises by appointment;
(2)
Art, music, and similar fine-art related lessons, and academic tutoring;
(3)
Cottage food operators preparing and packaging home kitchen-prepared foods to be sold directly to the public or indirectly through restaurants and food markets. A direct sale may be fulfilled in person at the dwelling unit by appointment provided that the unit maintains its residential exterior appearance and all food and beverage products are consumed off-site;
(4)
Hair, nail, facial, and similar personal care;
(5)
Massage therapy;
(6)
Office-type uses, including an office for an accountant, architect, attorney, consultant, insurance agent, licensed therapist, technical advisor, or writer;
(7)
Physical therapists and personal trainers;
(8)
Psychology and psychiatric offices; and
(9)
Other uses the Community Development Director deems to be of the same general character as those listed above, and not detrimental to the surrounding neighborhood.
(C)
Prohibited Uses. The following business activities are prohibited in a dwelling unit:
(1)
Adult business activities;
(2)
Animal hospitals, clinics, and kennels, and any commercial uses that involve the breeding, grooming, or training of dogs, cats, or other animals on the premises;
(3)
Assembly of an industrial nature;
(4)
Carpentry and cabinet making (does not prohibit a normal wood-working hobby operation);
(5)
Construction and landscaping businesses that provide on-site storage of goods, equipment, and materials to be utilized in the operation of the business;
(6)
Gun and weapon sales;
(7)
Hazardous uses. Hazardous uses are generally those uses that involve storage of large quantities of hazardous materials that readily support combustion or pose a health hazard;
(8)
Medical clinics, medical offices, laboratories, and pharmacies, except those permitted above;
(9)
Manufacturing;
(10)
Marijuana growing, processing, or retail sales;
(11)
Motor vehicle repair, servicing, painting, storage, or washing;
(12)
Personal self-storage (mini-storage);
(13)
Retail sales, direct (i.e., stock on hand and customers coming to the residence), except as permitted above;
(14)
Schools (does not including tutoring/counseling or art, music, and similar fine-art related lessons);
(15)
Storage, including personal self-storage (mini-storage), except as an accessory use to an otherwise permitted business activity. Storage may not displace required parking;
(16)
Tattoo shops;
(17)
Welding and machining; and
(18)
Other uses determined by the Community Development Director not to be incidental to, or compatible with, surrounding uses.
(D)
Authorization — Permits Required.
(1)
Home Occupation Permit. An applicant seeking a Home Occupation Permit shall file an application with the Community Development Department. The form and content of the application shall be as specified by the Community Development Director and shall be subject to a fee established by resolution of the City Council. Applications are subject to Planning and Building approval and may require a safety inspection.
(a)
In addition to any other application requirements specified by the Community Development Director, the application shall include a business operations narrative, interior floor plan, and a description of any proposed building or site improvements associated with the business use. The floor plan shall indicate the planned location for the home occupation, total living area square footage, and living area square footage devoted to the home occupation.
(2)
Business License. A Business License must be maintained at all times when a residential unit is being used for home occupation purposes.
(3)
Building Permit. A Building Permit is required for any construction, moving, alteration, conversion, improvement, repair, or demolition of a structure. In accordance with State and federal accessibility standards, improvements to make the unit or portions of the unit accessible to persons with disabilities may be required when the business premises is proposed to be open to the public, including employees that do not reside in the unit.
(4)
Coastal Development Permit. Any home occupation project within the coastal zone that qualifies as development under Section 25.07.006 of the Zoning Code shall require a Coastal Development Permit.
(E)
Denial. A Home Occupation Permit shall be denied if the Community Development Director determines that the nature of the business activity and its location create a reasonable potential for it to be operated in an objectionable manner due to fumes, odor, dust, smoke, gas, noise, vibrations, traffic, or parking that are or may be detrimental to properties and occupants in the neighborhood, and/or to any other uses and occupants on the same property.
(F)
Appeal. The decision of the Community Development Director may be appealed in accordance with the provisions of Laguna Beach Municipal Code Section 25.05.070.
(G)
Change of Operations. Any proposed operational changes or change in the type of business activity shall require an amended Home Occupation Permit.
(H)
Revocation. The Home Occupation Permit may be revoked in accordance with Laguna Beach Municipal Code Section 25.05.075.
(I)
Operating Standards. Home occupations shall comply with all of the following operating standards.
(1)
Accessory Use. The home occupation shall be clearly secondary to the full-time use of the dwelling unit as a residence and shall not alter the appearance of the dwelling. A maximum of one-half of the habitable area of the dwelling may be devoted to business activities.
(2)
Advertising.
(a)
Advertising signs on or off the site shall not be allowed in residential zones.
(b)
Advertising signs are allowed in mixed-use and commercial zones only as follows:
(i)
One vinyl decal window sign, not to exceed ten percent of the window area, up to a maximum of ten square feet, except in the Downtown Specific Plan area the limit is five square feet. Letter heights shall not exceed eight inches.
(ii)
For multi-tenant commercial properties, the home occupation may be listed on a directory sign identifying the name and location of the on-site businesses.
(3)
Building Code. The home occupation shall not create a conflict with the standards of the latest adopted edition of the California Building Code, including standards for habitability.
(4)
Customer Vehicle Trips. Home occupations shall not generate more than twelve additional customer or client vehicle trips (six car visits) to the dwelling each day, or up to twenty-four additional vehicle trips (twelve car visits) each day in mixed-use and commercial zones.
(5)
Deliveries. The frequency of deliveries shall not exceed that normally and reasonably occurring for a residence, nor shall the types of vehicles.
(6)
Direct Access. There shall be at least one direct access between the home occupation and living spaces within the dwelling unit.
(7)
Employees. No more than one employee, other than the resident(s) of the unit, shall be permitted on site at any given time in residential zones. A maximum of two employees other than the resident(s) of the unit shall be allowed in mixed-use and commercial zones. Non-resident employee parking shall be provided in residential zones at a rate of one on-site space per employee, which may be uncovered and/or tandem and located in the front or side setback, and must be located on private property.
(8)
Enclosed Uses. All work shall be performed entirely indoors unless otherwise approved pursuant to the Home Occupation Permit. Outdoor business activities may only be approved if the Community Development Director finds such activities to be compatible with surrounding uses.
(9)
Motor Vehicles. There shall be no motor vehicles used or kept on the premises, except residents' and employees' passenger vehicles. Notwithstanding the foregoing, one commercially licensed automobile, pickup truck, or van may be allowed for home occupations located in mixed-use and commercial zones. The commercial vehicle associated with the home occupation shall not be parked on the street.
(10)
Objectionable Effects. No home occupation use shall be operated in a manner detrimental to properties or occupants in the neighborhood due to fumes, odor, dust, smoke, gas, noise, vibrations, light trespass, traffic, or parking.
(11)
Operator. The residence must be inhabited by the operator of the business. Working and living spaces may not be leased separately.
(12)
Safety, Occupancy Classification. Activities conducted and materials used shall not change the fire safety or occupancy classifications of the premises. The use or storage of flammable, explosive, or combustible materials shall at all times comply with all applicable ordinances or regulations.
(13)
Special and/or Temporary Events. Special and/or temporary events associated with the home occupation shall be required to follow the permit process for temporary uses established by Section 25.05.035 (Temporary Use Permits).
(14)
Utility Services Modifications. The home occupation use shall not have utility service modifications, other than those required for normal residential use, that would be classified as commercial or industrial in load or design. An exception may be granted by the Building Official for 400-600 amp electric service.
(15)
Visibility. The home occupation accessory use and storage associated with such use must not be visible from the adjoining public right-of-way and from neighboring residential properties.
(16)
Alterations.
(a)
Interior Alterations. Any proposed alterations to the interior of the dwelling unit for purposes of conducting the home occupation accessory use which would render it unsuitable for residential use shall be prohibited.
(b)
Exterior Alterations. Any proposed alterations to the exterior of the dwelling unit for purposes of conducting the home occupation accessory use shall not include exterior features that are uncustomary for residential dwelling units.
(c)
Any proposed alterations to the exterior or interior of the structure supporting the home occupation accessory use are subject to the procedures and requirements identified in Title 25 of the Laguna Beach Municipal Code.
(17)
Visitors and Visitor Hours. Business-related visitors are allowed by appointment and limited to no more than two at any one time, or four at any one time in mixed-use and commercial zones. Visitor hours shall be limited to 7:00 a.m. to 7:00 p.m.
(Ord. 1712, 3/11/2025)
§ 25.96.050 Single room occupancy units.
(A)
Intent and Purpose. The purpose of this section is to regulate the development and operation of single room occupancy residential land uses to create housing opportunities for persons of lower incomes and special housing needs, including but not limited to persons with disabilities, seniors, foster youth aging out of the foster system, and formerly homeless individuals; to provide safety and comfort for such persons; and to integrate these uses into the neighborhoods and districts in which they are located.
(B)
Definitions. For the purposes of this Section, the term "Single room occupancy" or "SRO" shall mean a facility with six or more dwelling units for persons of lower income where each unit has a minimum floor area of one hundred and fifty square feet and a maximum floor area of four hundred square feet. These dwelling units must be offered on a monthly basis or longer. For the purposes of this definition, "lower income" has the meaning set forth in Health and Safety Code Section 50079.5.
(C)
Applicability. An SRO facility shall be allowed in the C-1 (Local Business District) and CH-M (Commercial Hotel-Motel Zone) provided it is a residential component of a mixed-use project. An SRO facility shall also be allowed in the M-1A (Light Industrial), and M-1B (Light Industrial) zones.
(D)
General Standards. SRO facilities must comply with the following requirements:
(1)
Tenants. Each SRO unit must be occupied by a single individual or by two individuals who are living together as a domestic unit.
(2)
Occupancy. A minimum of fifteen percent of the units shall be designed for double occupancy.
(3)
Facility Management. An SRO facility with ten or more SRO units shall provide on-site management and a manager's unit. An SRO use with fewer than ten units shall provide an on-site management office with a minimum size of one hundred square feet.
(4)
Parking. Parking shall be provided at a minimum ratio of one-half spaces per SRO unit, plus one space for an SRO facility employee on shift.
(5)
Common Area. Each SRO development shall have a common area of a minimum size of 400 square feet, designed to be furnished for the use and comfort of the tenants. The common area shall be located within the building. Where deemed appropriate by the responsible review authority, outdoor common patios may be considered toward meeting the common area requirement. Dining rooms, recreational rooms, or other similar areas that are accessible to tenants, and as approved by the responsible review authority, may be considered common areas. Common areas shall not include storage rooms, the main lobby, laundry facilities, hallways, restrooms, or kitchens.
(6)
Mail. Mailboxes shall be provided for each unit and located in the main lobby in plain view of the reception desk.
(7)
Computer Access. A minimum of one computer with internet access shall be available in a common area accessible to tenants.
(8)
Laundry Room. Common laundry facilities shall be provided at a rate of one washer and one dryer per each eight units.
(E)
Standards for individual units.
(1)
Floor Area. Each SRO unit shall comply with the following unit size requirements:
Minimum Size | Maximum Size | |
|---|---|---|
One-person unit (single occupancy) | 150 | 220 |
Two-person unit (double occupancy) | 221 | 400 |
(2)
Each SRO unit shall be provided with the following minimum amenities:
(a)
Each unit shall be pre-wired for telecommunications services, which may include wireless telecommunications infrastructure.
(b)
If full bathrooms are not provided in each unit, one full bathroom with toilet, sink, and shower shall be provided on each floor, at a ratio of one per three units, with doors lockable from the inside.
(c)
If full kitchens are not provided in each unit, shared kitchen facilities shall be provided on each floor, at a ratio of one per twenty units on each floor, consisting of a range, sink with garbage disposal, and refrigerator.
(d)
If laundry facilities are not provided in each unit, common laundry facilities shall be provided, at a ratio of one washing machine and one drying machine per six units, on the premises.
(F)
Operational Standards.
(1)
Management Plan. Prior to the issuance of a Certificate of Occupancy or commencement of the SRO use, the SRO facility applicant shall submit a management plan to the Director of Community Development containing information regarding the development's projected staffing needs, emergency procedures, security need and plan, application procedures for renting SRO units, and proposed rental rates for SRO units. The plan shall be solely for informational purposes; said plans shall not be subject to discretionary review and/or approval.
(2)
Rents. The individual SRO units shall not be for sale. All SRO units shall be for rent only.
(3)
Length of Stay. SRO units shall not be for rent for less than thirty-one days.
(Ord. 1712, 3/11/2025)
§ 25.96.060 Transitional housing, supportive housing, and low barrier navigation centers.
(A)
Intent and Purpose. The City intends to allow transitional housing, as defined in Government Code Section 65582(j), and supportive housing, as defined in Government Code Section 65650(a), and low barrier navigation centers, as defined in Government Code Section 65660(a), consistent with State law to ensure equality of treatment for all residential uses regardless of the occupant. Supportive housing is generally described as permanent housing linked to a range of support services designed to enable residents to maintain stable housing and lead fuller lives. Transitional housing is generally described as a type of housing used to facilitate the movement of people experiencing homelessness into permanent housing and independent living. A low barrier navigation center is generally described as a housing first, low-barrier, service-enriched shelter focused on moving people into permanent housing that provides temporary living facilities while case managers connect individuals experiencing homelessness to income, public benefits, health services, shelter, and housing.
(B)
Permitted Zones.
(1)
Transitional housing shall be permitted in any zone that allows residential uses, including mixed-use zones provided it is a residential component of a mixed-use project, and subject only to the provisions and development standards applicable to residential uses of the same type in the same zone. The same shall apply to supportive housing, except that supportive housing is not permitted in single-family zones, including the R-1 and RHP Zones.
(a)
Supportive housing shall satisfy all of the requirements of California Government Code Section 65651(a).
(b)
If the supportive housing development is located within one-half mile walking distance of a public transit stop, no parking spaces are required for the units occupied by supportive housing residents per Government Code Section 65654.
(2)
Low barrier navigation centers shall be permitted in any nonresidential zone that allows multifamily uses. Low barrier navigation centers shall be allowed by right if the application is in compliance with the following development and management standards:
(a)
The low barrier navigation center offers services to connect people to permanent housing through a services plan that identifies services staffing;
(b)
The low barrier navigation center is linked to a coordinated entry system, so that staff in the interim facility or staff who co-locate in the facility may conduct assessments and provide services to connect individuals to permanent housing;
(i)
"Coordinated entry system" is generally described as a centralized or coordinated assessment system developed pursuant to Section 576.400(d) or Section 578.7(a)(8), as applicable, of Title 24 of the Code of Federal Regulations, as those sections read on January 1, 2020, and any related requirements, designed to coordinate program participant intake, assessment, and referrals.
(c)
The low barrier navigation center complies with Chapter 6.5 (commencing with Section 8255) of Division 8 of the Welfare and Institutions Code;
(d)
The low barrier navigation center has a system for entering information regarding client stays, client demographics, client income, and exit destination through the local Homeless Management Information Systems, as defined by Section 578.3 of Title 24 of the Code of Federal Regulations; and
(e)
The low barrier navigation center complies with the development standards established for emergency shelters in Section 25.48.040 of the Zoning Code.
(f)
Approval by the Community Development Director is required prior to the establishment of any low barrier navigation center. The permit shall be a ministerial action without discretionary review or a hearing.
(3)
Subsection (B)(2) of this Section shall remain in effect until January 1, 2027. As of January 1, 2027, subsection (B)(2) shall sunset automatically without action of the City unless State law is amended to require this subsection to be in effect beyond that date.
(Ord. 1712, 3/11/2025)
§ 25.96.070 Inclusionary housing program.
(A)
Purpose. The City intends to establish a Citywide inclusionary housing program that provides requirements and procedures to develop housing that would be affordable to households of extremely low, very low, low, or moderate incomes, meet the City's regional share of housing needs, and implement the goals and objectives of the General Plan and Housing Element.
(B)
Definitions. The following definitions shall apply to this Section:
(1)
"Adaptive Reuse Project" means any change of use from nonresidential use to dwelling units, guest rooms or joint living and work quarters to, or within, a building, or portion of a building, that was constructed in accordance with building and zoning codes in effect prior to July 1, 1974, or which has been determined to be a historically significant building.
(2)
"Affordable housing cost" means the housing cost for dwelling units as defined by California Health and Safety Code Section 50052.5 for owner-occupied housing and the affordable rent for rental units as defined by California Health and Safety Code Section 50053, as applicable.
(3)
"Affordable housing covenants" means the plan that is part of the affordable housing agreement which ensures the continued affordability of inclusionary housing units in a particular development and describes the real estate and financial terms and requirements of the inclusionary housing units.
(4)
"Affordable housing site plan" means the plan that is part of the affordable housing agreement which provides the location of the inclusionary housing units within the overall development project.
(5)
"Area median income" or "AMI" means the annual median income for Orange County, adjusted for household size, as published periodically in the California Code of Regulations. Title 25, Section 6932, or its successor provision, or as established by the City of Laguna Beach in the event that such median income figures are no longer published periodically in the California Code of Regulations.
(6)
"Certificate of occupancy" is the permit issued by the City of Laguna Beach Building Division authorizing the occupancy of a residential unit and/or non-residential space and/or building.
(7)
"Construction scheduling and phasing" shall apply to the construction area as identified in the affordable housing site plan and shall include the estimated timing for each phase of construction.
(8)
"Contiguous property" means any parcel of land that is:
(a)
Touching another parcel at any point;
(b)
Separated from another parcel at any point only by a public right-of-way, private street or way, or public or private utility, service, or access easement; or
(c)
Separated from another parcel only by other real property of the applicant which is not subject to the requirements of this Section at the time of the planning permit application by the applicant.
(9)
"Conversion" means changing a non-residential use to residential use, including but not limited to remodeling and use permits.
(10)
"Extremely-Low-income household" shall have the definition given in California Health and Safety Code Section 50106.
(11)
"Historically significant building" means any building meets the criteria for listing on the California Register of Historical Resources.
(12)
"Housing in-lieu fund" means the fee fund where all acquired in-lieu fees shall be deposited. Deposited fees may be expended for any costs directly related to the production or preservation of affordable housing in the City of Laguna Beach. Collected fees could also be used for City staff that conduct periodic inspections to ensure that the constructed inclusionary housing units comply with the affordable housing agreement, affordable housing site plan, inclusionary housing plan, affordable housing covenants, and all other City and zoning requirements.
(13)
"Inclusionary housing plan" means the plan that is part of the affordable housing agreement, which describes the design, features, timing, and affordability of the inclusionary housing units as required by this Section.
(14)
"Inclusionary housing unit" means a dwelling unit required by this Section to be affordable to extremely-low, very-low, low, or moderate income households.
(15)
"Low-income household" shall have the definition given in California Health and Safety Code Section 50079.5.
(16)
"Market rate unit" means a new dwelling unit in a development that is not an inclusionary housing unit and can be purchased or rented at market rates. These units are not considered to be affordable units.
(17)
"Moderate income household" shall have the definition given in California Health and Safety Code Section 50093(b), except that for the purposes of moderate income rental inclusionary units that are located upon the same site as the market rate residential rental units, "moderate income household" means a household earning no more than eighty percent of area median income.
(18)
"Nonresidential use" means any use other than dwelling units, guest rooms or joint living and work quarters.
(19)
"Physical needs assessment" means a report by a qualified housing professional identifying those items that are necessary repairs, replacements and/or maintenance at the time of the assessment or that will likely require repair or replacement within three years of the assessment. Estimated cost of repairs should be included in the assessment. All required repairs must be completed prior to occupancy of the repaired inclusionary housing unit.
(20)
"Planning permit" means a tentative parcel or tract map, condominium conversion, design review, conditional use permit, coastal development permit, development agreement, or any discretionary permit excluding general plan amendments, zoning and rezoning, annexation, specific plans, and area development policies.
(21)
"Very-low income household" means a household earning no more than the amount defined by California Health and Safety Code Section 50105.
(C)
Applicability and Provisions of Inclusionary Housing Units. The provisions of this Section shall apply to all development that will result in ten or more residential units or lots, including new development, conversion, adaptive reuse, redevelopment, and/or subdivision. These applicable developments will be required to comply with this Section and provide inclusionary housing units at an affordable housing cost, which is limited to thirty percent of a household's income.
(D)
Exempt Projects. This Section shall not apply to any of the following:
(1)
Projects that are not proposing residential units or lots.
(2)
Projects which are developed in accordance with the terms of a development agreement that expressly provides for a different amount of inclusionary units from that specified in this Section.
(3)
Developments for which a planning permit application has been formally submitted to the City and accepted by the City before January 1, 2024. Should the planning permit for an approved project expire or be revoked by the City, the requirements of this Section shall then apply if a new planning permit application is resubmitted for the project.
(4)
Adaptive reuse projects, as defined by this ordinance, for which planning or building permit applications are submitted to the City of Laguna Beach between the effective date of this Ordinance and two years thereafter.
(5)
The Director of Community Development may exempt a development from the requirements of this Section if applicable federal, state or local laws are changed which result in conflict with this Section.
(E)
Inclusionary Housing Requirements. All development that will result in ten or more residential units will be required to comply with this Section and provide inclusionary housing units. If inclusionary housing units are required, the following provisions shall apply:
(1)
Either for-sale or rental inclusionary housing units may be provided, subject to the following affordability requirements for each unit type.
(a)
If the applicant chooses to provide for-sale inclusionary housing units, fifteen percent of the total number of dwelling units proposed with the development shall be made available for purchase to moderate income households.
(b)
If the applicant chooses to provide rental inclusionary housing units, fifteen percent of the total number of dwelling units proposed with the development shall be made available for rent to moderate income households, or ten percent if restricted to very-low or low income households.
(c)
If both for-sale and rental units are being provided, the for-sale units shall comply with those provisions described in subsection (E)(1)(a) above. The rental units shall comply with those provisions described in subsection (E)(1)(b) above.
(2)
In calculating the required total number of inclusionary housing units, a minimum of one unit shall be required. Any fractions above the minimum one inclusionary housing unit may be satisfied with payment of a fraction of the inclusionary housing in-lieu fee (e.g. a 1.3 inclusionary housing unit requirement may build one inclusionary unit onsite and pay 0.3 of the inclusionary housing in-lieu fee).
(3)
If an applicant owns or controls contiguous properties, the applicant shall not avoid the requirements of this Section by submitting piecemeal planning permit applications. The first planning permit application for the development shall identify all contiguous properties under common ownership and control, as applicable.
(F)
Timing of Construction of Inclusionary Housing Units. The applicant's inclusionary housing plan shall indicate the scheduling and phasing for construction of the required inclusionary housing units. The City shall review the proposed construction scheduling and phasing with its review and approval of the inclusionary housing plan. The latest that any inclusionary housing unit could be built would be current with the last market rate unit for the overall development project.
(G)
Design of Inclusionary Housing Units. The exterior and interior design and appearance of the inclusionary housing units shall be similar in function to the design and appearance of the residential development as a whole. Additionally, the inclusionary housing units shall include the same laundry, recreation, and other facilities that are made available to the market rate housing units.
(H)
Incentives for Inclusionary Housing Units.
(1)
Applicants that are required to provide inclusionary housing units can apply those benefits that are described in Chapter 25.96 Affordable Housing Programs and Incentives, which allow density bonuses, parking reductions and other benefits for providing affordable housing units.
(2)
Density bonus shall allow higher densities for development if affordable units are provided pursuant to California Government Code Section 65915 et seq., and Section 25.96.010 et seq. of the City of Laguna Beach Municipal Code.
(3)
Certain owners of properties with inclusionary housing units are eligible to apply for a Welfare Exemption for Low Income Rental Housing. Owners are also eligible to apply for other local, state and national financial benefits, where applicable.
(I)
Applicant Options for Providing Inclusionary Housing Units. To comply with the City's inclusionary housing requirements, applicants may construct their required inclusionary housing units either on-site within the overall proposed project site or off-site on other dedicated property; pay in-lieu fees; or reconstruct other existing residential units, subject to the following provisions:
(1)
Applicants may construct their required inclusionary housing units on-site within the project.
(2)
Applicants may construct their required inclusionary housing units off-site within the City of Laguna Beach. If construction of the required inclusionary housing units occurs off-site, the applicant must also acquire and manage the off-site property.
(3)
Applicants May Pay In-Lieu Fees. The in-lieu fee shall be established by City Council resolution and updated annually. All in-lieu fees shall be paid prior to the last certificate of occupancy that is issued for the overall proposed development.
(4)
Applicants may acquire and reconstruct existing market rate residential units, subject to the following provisions. These types of market rate residential units can be acquired by the applicant, then reconstructed in accordance with City building procedures and requirements, then converted to affordable inclusionary housing units.
(a)
If the existing units are occupied, the applicant shall assume the costs for noticing, relocating the existing residents, and complying with all state and county requirements related to relocation.
(b)
The existing residential units cannot be a nonconforming use.
(c)
The reconstructed residential units shall comply with all current applicable Building and Fire Codes and requirements.
(d)
A physical needs assessment shall be prepared and submitted to the City. The assessment shall evaluate each existing residential unit to be acquired and reconstructed, the property upon which it is located, any associated common area, and describe all existing structures and properties that need repair, replacement and/or maintenance.
(e)
If existing residential units are owner-occupied, then the reconstructed inclusionary housing unit shall continue to be owner-occupied. If the existing residential units are rentals, the applicant may choose to have the inclusionary housing unit be either renter or owner-occupied.
(f)
The bedroom count of the reconstructed inclusionary housing units shall be the same as the required bedroom count that would be required for the inclusionary housing unit in the overall development project.
(5)
Applicants may choose any combination of the options described in subsections (I)1-4 above to comply with the provisions of this Section. Should an applicant choose to select a combination of options, the City shall review these proposals on a project-by-project basis to ensure that the required number of inclusionary housing units are ultimately provided.
(6)
Applicants, at a minimum, shall provide the following information, regardless if the required inclusionary housing units are constructed on- or off-site:
(a)
Schedules for acquiring property or existing residential units, construction activities, and final inspections shall be provided.
(b)
Inclusionary housing units shall not be eligible for credits or transfers.
(7)
All in-lieu fees shall be deposited into the housing in-lieu fund. Deposited fees may be expended for any costs directly related to the production or preservation of - or conversion to - extremely-low, very-low, low and moderate-income housing and special needs housing/facilities in the City of Laguna Beach.
(8)
All on-site or off-site inclusionary housing units, regardless if the units are for sale or rental, shall be subject to the design standards, requirements, and procedures described in this Section.
(J)
Affordable Housing Agreement. Applicants that are required to provide inclusionary housing units, in accordance with the provisions of this Section, shall prepare an affordable housing agreement that describes the design and location of the inclusionary housing units and their affordability requirements. The following describes those plans that shall be included in the affordable housing agreement and how the affordable housing agreement will be approved by the City.
(1)
Plans Included in the Affordable Housing Agreement.
(a)
Affordable Housing Site Plan. These plans shall show the location of the inclusionary housing units within the overall project site.
(b)
Inclusionary Housing Plan. These plans shall describe the inclusionary housing units that will be provided, as follows:
(i)
Will the inclusionary housing units be for-sale or rental.
(ii)
How will the inclusionary housing requirements be satisfied pursuant to this Section.
(iii)
The number of inclusionary housing units that are required and will be provided, unit types, number of bedrooms and baths, unit size, design features and amenities, etc.
(iv)
Anticipated construction activities, phasing, and completion schedule.
(v)
How will the inclusionary housing units be marketed.
(vi)
How will tenant incomes be verified for rental inclusionary units (if applicable).
(vii)
Provide a financing program for the ongoing administration and monitoring of rental inclusionary units.
(viii)
How will the affordability of the inclusionary housing units be maintained.
(ix)
Any other information that is necessary to evaluate the compliance of the affordability of the inclusionary housing units with the provisions of this Section and the City's affordable housing agreement requirements.
(c)
Affordable Housing Covenants. These covenants shall ensure the continued affordability of inclusionary housing units in the overall development.
(i)
Affordable housing covenants shall include the following, as applicable: inclusionary housing and regulatory terms, promissory notes, deeds of trust, resale restrictions, rights of first refusal, options to purchase, and/or other relevant financial and administration documents.
(ii)
Affordable housing covenants shall require that all inclusionary housing units remain affordable to the targeted income group for no less than twenty-five years for rental units and fifteen years for ownership units. A longer term of affordability may be required if the development receives a subsidy of any type, including, but not limited to, loan, grant, mortgage financing, mortgage insurance, or rental subsidy, and whether the subsidy program requires a longer term of affordability. The covenant shall be in a form approved by the City Attorney and binding upon all future owners and successors in interest.
(iii)
Affordable housing covenants shall require that the owner provide a copy of the Income and Computation and Certification Form(s) to the City annually.
(2)
Approval of the Affordable Housing Agreement.
(a)
For those developments that are required to provide inclusionary housing units, the affordable housing site plan and inclusionary housing plan shall be reviewed as part of the overall development's planning permit application.
(b)
The affordable housing agreement, including the affordable housing site plan, inclusionary housing plan, and affordable housing covenants shall be approved by City Council resolution, prior to issuance of any building permit for the overall development.
(c)
Upon submittal, the Community Development Director, or designee, shall determine if the affordable housing agreement, including the affordable housing site plan, inclusionary housing plan, and affordable housing covenants are complete and conform to the provisions of this Section and City's housing requirements.
(d)
The City Council can also establish fees for the ongoing administration and monitoring of the inclusionary housing units. Said fees can be updated periodically, as required.
(e)
The approval and recordation of the affordable housing covenant shall occur prior to issuance of building permits.
(K)
Monitoring and Enforcement. All applicants shall either construct their required inclusionary housing units or pay appropriate in-lieu fees, prior to issuance of the last certificate of occupancy for the overall development project. To ensure that the constructed inclusionary housing units are properly maintained and have incorporated satisfactorily into the overall development project, the following provisions shall be implemented.
(1)
City staff may conduct periodic inspections to also ensure compliance with the affordable housing agreement, affordable housing site plan, inclusionary housing plan, affordable housing covenants, conditions of approval, and all other City and zoning requirements. The City Council may adopt fees to cover the costs for City inspections and monitoring. These fees shall be deposited into the housing in-lieu fund.
(2)
The City shall evaluate the effectiveness of this Section every three years after the operative date of this Section. Subsequent revisions to this Section will require City Council review and approval, and an amendment to the City's Local Coastal Program pursuant to Chapter 25.07 of the Zoning Code.
(L)
Adjustments or Waivers. Adjustments and/or waivers from the provisions and requirements of this Section may be considered by the City on a project-by-project basis. Adjustments and/or waivers of the following circumstances and conditions may be proposed by the applicant, subject to City approval. Procedures and requirements for City review and approval of any adjustment or waiver request are described as follows.
(1)
Circumstances and Conditions.
(a)
Developments for which a planning permit has been approved by the City prior to enactment of this Section shall be waived from the provisions and requirements of this Section. However, should the planning permit expire or is revoked by the City, the requirements of this Section shall then apply if a new planning permit application is resubmitted for the project.
(b)
An applicant may propose an alternative method of meeting the inclusionary housing requirements described in this Section. The Director of Community Development may approve the recommended alternative if determined that the alternative will provide as much or more affordable housing units; the alternative will benefit the same or lower income levels; affordable units will be constructed of the same or superior design quality; and the alternative will provide greater public benefit.
(2)
City Review and Approval of Adjustment and Waiver Requests.
(a)
Any request for a waiver or adjustment shall be submitted to the City concurrently with the planning permit application, affordable housing site plan, or inclusionary housing plan for the particular development.
(b)
The applicant is responsible for presenting substantial evidence to support the requested waiver or adjustment.
(c)
The decision-making body for the planning permit application may exempt a development from the requirements of this Section or approve any adjustment or waiver request if the applicant provides substantial evidence to support said exemptions or requests, and if applicable federal, state or local laws are changed which conflict with this Section.
(Ord. 1712, 3/11/2025)
