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HomeMy WebLinkAbout02-26-2025 Planning Commission Meeting Agenda PacketSaratoga Planning Commission Agenda – Page 1 of 2 SARATOGA PLANNING COMMISSION SPECIAL MEETING FEBRUARY 26, 2025 7:00 P.M. - PLANNING COMMISSION SPECIAL MEETING Civic Theater | 13777 Fruitvale Avenue, Saratoga, CA 95070 Public Participation Information In accordance with Saratoga’s Remote Public Participation Policy, members of the public may participate in this meeting in person at the location listed below or via remote attendance using the Zoom information below. 1. Accessing the meeting via Zoom • https://us02web.zoom.us/j/82652375945 (Webinar ID 826 5237 5945) • Calling 1.669.900.6833 or 1.408.638.0968; OR 2. Viewing the meeting on Saratoga Community Access Television Channel 15 (Comcast Channel 15, AT&T UVerse Channel 99) and calling the numbers listed above; OR 3. Viewing online at http://saratoga.granicus.com/MediaPlayer.php?publish_id=2 and calling the numbers listed above. Written Communication Comments can be submitted in writing at www.saratoga.ca.us/pc. Written communications will be provided to the members of the Planning Commission and included in the Agenda Packet and/or in supplemental meeting materials. PLEDGE OF ALLEGIANCE ROLL CALL 1. APPROVAL OF MINUTES Action Minutes from the Planning Commission Meeting of January 22, 2025. Recommended Action: Approve Minutes of January 22, 2025 Regular Planning Commission Meeting. ORAL COMMUNICATIONS ON NON-AGENDIZED ITEMS Any member of the public will be allowed to address the Planning Commission for up to three (3) minutes on matters not on this agenda. This law generally prohibits the Planning Commission from discussing or taking action on such items. However, the Planning Commission may instruct staff accordingly regarding Oral Communications. REPORT ON APPEAL RIGHTS Any interested person objecting to the whole, or any portion of decision on this Agenda, may file an Appeal Application with the City Clerk within fifteen (15) calendar days of the date of the Saratoga Planning Commission Agenda – Page 2 of 2 decision. The City Council conducts de novo review of appeals. 2. PUBLIC HEARINGS 2.1 Application ZOA25-0002: City Wide. Amend City Code by adding Article 15-82 (Inclusionary Housing Ordinance) to Chapter 15 (Zoning Regulations) to implement Policy 5.1-1 of the adopted 2023-2031 Housing Element to require new housing developments consisting of five or more units to dedicate 15 percent of the units as affordable housing. Staff Contact: Cindy McCormick (408) 868-1232 or cmccormick@saratoga.ca.us. Recommended Action: Adopt Resolution No. 25-002 recommending the City Council adopt an ordinance adding Article 15-82 (Inclusionary Housing Ordinance) to Chapter 15 (Zoning Regulations) to implement Policy 5.1-1 of the adopted 2023-2031 Housing Element to require new housing developments consisting of five or more units to dedicate 15 percent of the units as affordable housing. 3. NEW BUSINESS - Planning Commission Work Plan 4. DIRECTOR ITEMS 5. COMMISSION ITEMS 6. ADJOURNMENT CERTIFICATE OF POSTING OF THE AGENDA, DISTRIBUTION OF THE AGENDA PACKET, COMPLIANCE WITH AMERICANS WITH DISABILITIES ACT I, Frances Reed, Administrative Analyst for the City of Saratoga, declare that the foregoing agenda for the meeting of the Planning Commission was posted and available for review on February 21, 2025 at the City of Saratoga, 13777 Fruitvale Avenue, Saratoga, California and on the City's website at www.saratoga.ca.us. Signed this 21st day of February 2025 at Saratoga, California. Frances Reed, Administrative Analyst. In accordance with the Ralph M. Brown Act, copies of the staff reports and other materials provided to the Planning Commission by City staff in connection with this agenda, copies of materials distributed to the Planning Commission concurrently with the posting of the agenda, and materials distributed to the Planning Commission by staff after the posting of the agenda are available on the City Website at www.saratoga.ca.us or available at 13777 Fruitvale Avenue, Saratoga, CA 95070. In Compliance with the Americans with Disabilities Act, if you need assistance to participate in this meeting, please contact the City Clerk at bavrit@saratoga.ca.us or calling 408.868.1216 as soon as possible before the meeting. The City will use its best efforts to provide reasonable accommodations to provide as much accessibility as possible while also maintaining public safety [28 CFR 35.102-35.104 ADA title II]. DRAFT MINUTES WEDNESDAY JANUARY 22, 2025 SARATOGA PLANNING COMMISSION REGULAR MEETING Chair Choi called the Meeting to order at 7:00 p.m. ROLL CALL PRESENT: Chair Jojo Choi, Vice Chair Anjali Kausar, Commissioners Clinton Brownley, Paul Germeraad, Ping Li, Razi Mohiuddin and Herman Zheng ABSENT: None ALSO PRESENT: Bryan T. Swanson, Community Development Director Christopher Riordan, Senior Planner Kyle Rathbone, Associate Planner Cindy McCormick, Development Manager Frances Reed, Administrative Analyst ORAL COMMUNICATIONS ON NON-AGENDIZED ITEMS Mona Kaur spoke. 1. APPROVAL OF MINUTES Action Minutes from the Planning Commission Meeting of December 11, 2024 Recommended Action: Approve Minutes of December 11, 2024 Regular Planning Commission Meeting. BROWNLEY/CHOI MOVED TO APPROVE THE MINUTES OF THE DECEMBER 11, 2024 MEETING. MOTION PASSED. AYES: BROWNLEY, CHOI, GERMERAAD, KAUSAR, LI, MOHIUDDIN, ZHENG. NOES: NONE. ABSENT: NONE. ABSTAIN: NONE. 2. PUBLIC HEARINGS 2.1 Application ZOA24-0003: City Wide. Amend Zoning Standards to implement policy programs of the adopted 2023-2031 Housing Element to include Incentives to Encourage Small Lot Consolidation and new Objective Design Standards for Single-Family Dwellings, Two-Unit Residential Developments, Three-Unit Residential Conversions: Articles 15-06 (Definitions); 15-12 (Single-Family Residential Districts); 15-21 (M-U: Mixed Use Zoning Districts; (15-29 (Fences); 15-45 (Design Review Single Family Dwellings); 15-46 (Design Review: Multi-Family Dwellings and Commercial Structures); 15-57 (Ministerial Consideration of Qualifying Projects); 15-65 (Nonconforming Uses and Structures); 15-80 (Miscellaneous Regulations and Exceptions); and adoption of Article 15-59 (Single-Family Dwelling Design Standards). Staff Contacts: Christopher Riordan (408) 868-1235 or criordan@saratoga.ca.us / Kyle Rathbone (408) 868-1212 or krathbone@saratoga.ca.us. Recommended Action: Adopt Resolution No. 25-001 recommending the City Council adopt an ordinance amending Chapter 15 (Zoning Regulations) of the Saratoga City Code to implement programs of the 2023-2031 Housing Element which includes Single Family Objective Residential Design Standards and Incentives to Encourage Lot Consolidation. Wayne Tsunaga spoke. Mohini Balakrisshan spoke. 3 Mona Kaur spoke. Jane Lin-Li spoke. Pat Berge spoke. Bernie Mills spoke. Rosemary Wong spoke. Radha Basu spoke. Chair Choi adjourned the meeting for a five-minute break. Meeting resumed at 8:56 pm. MOHIUDDIN/KAUSAR MOVED TO ADOPT RESOLUTION NO. 25-001 WITH THE FOLLOWING CHANGES: • Section 15-59.030(d)(3) Change the word “property line” to “second story setback line”; and • Section 15-59.040(d)(4) and Section 15-59.040(d)(5) change “six feet tall at maturity” to “that can grow to a height of six feet within a two-year period from the date of certificate of occupancy”. No vote was taken. BROWNLEY/LI MOVED TO ADOPT RESOLUTION NO. 25-001 WITH THE FOLLOWING CHANGE: • Section 15-59.030(d)(3) Change the word “property line” to “second story setback line”; and • Section 15-59.040(d)(4) and Section 15-59.040(d)(5) change “six feet tall at maturity” to “that can grow to a height of six feet within a two-year period from the date of certificate of occupancy”; and • Section 15-45.066(b) Add notice of Application Received” will be mailed to all property owners within two hundred and fifty feet of the subject property and to others as deemed appropriate. This notice will include a description of the application, information on the ministerial review process, and information on how the public can view the application materials. No vote was taken. CHOI MOVED TO ADOPT RESOLUTION NO. 25-001 WITH THE FOLLOWING CHANGES: • Section 15-59.030(d)(3) Change the word “property line” to “second story setback line”; and • Section 15-59.040(d)(4) and Section 15-59.040(d)(5) change “six feet tall at maturity” to “that can grow to a height of six feet within a two-year period from the date of certificate of occupancy”; and • Section 15-45.066(b) Add notice of Application Received” will be mailed to all property owners within five hundred feet of the subject property and to others as deemed appropriate. This notice will include a description of the application, information on the ministerial review process, and information on how the public can view the application materials; and • Signage displayed at the subject property including a description of the application, information on the ministerial review process, and information on how the public can view the application materials. No second. Motion failed. GERMERAAD/CHOI MOVED TO ADOPT RESOLUTION NO. 25-001, RECOMMENDING THE CITY COUNCIL ADOPT ORDINANCE AMENDMENT ZOA24-003 AS AMENDED. MOTION PASSED. AYES: CHOI, GERMERAAD, LI, ZHENG. NOES: KAUSAR, MOHIUDDIN, BROWNLEY. ABSENT: NONE. ABSTAIN: NONE. 4 Changes included in passed motion: • Section 15-59.030(d)(3) Change the word “property line” to “second story setback line”; and • Section 15-59.040(d)(4) and Section 15-59.040(d)(5) change “six feet tall at maturity” to “that can grow to a height of six feet within a two-year period from the date of certificate of occupancy”. • Section 15-45.066 Add new sub section (b) Within 15 calendar days from the date of application submittal to the Community Development Department, a “Notice of Application Received” will be mailed to all property owners within five hundred feet of the subject property and to others as deemed appropriate. This notice will include a description of the application, information on the ministerial review process, and information on how the public can view the application materials. 3. DIRECTOR ITEMS Director Swanson thanked Commissioners and the public for getting through tonight’s material and conducting meaningful discussion on the matters before them. He also thanked Monica Szydlik and David Bergman from Lisa Wise Consulting Inc. Gabe Ross and Kristi Bascom from Shute, Mihaly & Weinberger LLP. Director Swanson introduced the department’s new Development Manager, Cindy McCormick. 4. COMMISSION ITEMS Chair Choi asked Director Swanson for an update on the builder’s remedy projects. Commissioner Mohiuddin thanked staff for their hard work on this item. Chair Choi thanked the public for their participation and wished everyone a Happy Chinese New Year. 5. ADJOURNMENT Chair CHOI moved for adjournment at 10:56 P.M. Minutes respectfully submitted: Frances Reed, Administrative Analyst City of Saratoga 5 REPORT TO THE PLANNING COMMISSION Meeting Date: February 26, 2025 Subject: Proposed Amendments to Chapter 15 (Zoning) to Implement Inclusionary Ordinance: ZOA25-0002 Address/APN: City Wide Owner/Applicant: City of Saratoga Report Prepared By: Cindy McCormick, Development Manager STAFF RECOMMENDATION Adopt Resolution No. 25-002 recommending the City Council adopt an Ordinance amending the Saratoga City Code by adding Article 15-82 (Inclusionary Housing) to Chapter 15 (Zoning Regulations) to implement Policy 5.1-1 of the adopted 2023-2031 Housing Element to require new housing developments consisting of five or more units to dedicate 15 percent of the units as affordable housing. BACKGROUND The adopted 2023-2031 Housing Element contains specific policies and programs intended to facilitate affordable housing opportunities in Saratoga. Every program also has a quantified objective/metric, geographic target, and timeframe. • Program 5.1-1: Inclusionary Housing Ordinance. Amend the Zoning Ordinance to require new multi‐family housing developments consisting of five or more units will be required to dedicate 15 percent of the units as affordable housing to moderate income households. Addresses fair housing contributing factors relating to a lack of affordable moderate-income housing. Quantified Objective/ Metric: Construct 289 affordable units by 2031 to expand housing mobility opportunities for moderate income households. Geographic Target: City Wide Timeframe: Adopt code amendment by February 2025. • Program 4.3-2: Housing for Persons Employed in Saratoga. The City shall explore opportunities to provide additional local housing options for the city’s workforce, including rental housing for families. As part of the proposed inclusionary housing ordinance (Program 5-1.1), the City will implement a local preference program that prioritizes Saratoga workers and persons with special needs. The City will also continue to look for opportunities to increase public awareness of the City’s housing assistance programs such as partnering with West Valley College to explore student and faculty housing development and other employers in Saratoga (churches, etc.). Addresses fair housing contributing factors relating to a lack of affordable housing. Quantified Objective/ Metric: Adopted code amendment and engage with 5-7 employers each year. Geographic Target: City Wide 6 Timeframe: Adopt code amendment by February 2025. DISCUSSION The City of Saratoga does not currently have an inclusionary housing ordinance. The proposed ordinance would require housing development of five units or greater to provide at least fifteen percent of the units as “below-market-rate” units, with legal limitations on the cost of such units and on the households eligible to purchase or rent them. It is intended to increase the number of units in Saratoga affordable to people of lower incomes. Although the City is currently processing several projects utilizing a tool known as the “Builder’s Remedy” under Government Code Section 65589.5(d)(5) (Housing Accountability Act), the projects will not fully satisfy the City’s Regional Housing Needs Allocation (RHNA). As noted on page 7-38 of the Housing Element, [w]hile Saratoga cannot control the amount of housing built, the city intends to make a good faith effort to achieve housing production at a level consistent with its regional housing needs allocation (RHNA). The Quantified Objectives for new construction will be the same as the RHNA. The City’s RHNA assessment is noted in the Housing Element Table 2-4, illustrated below. Senate Bill 35 applies to California cities and counties where production of new housing has not met the state-mandated RHNA targets within specified time periods. These cities and counties must use a streamlined, ministerial review process for qualifying multifamily residential projects. The City’s Inclusionary Ordinance includes requirements for very-low-income units that are generally in line with achieving the City’s assigned RHNA targets. The following paragraphs are a summary of the proposed changes to the City Code to implement the inclusionary housing requirements. Article 15-82: Inclusionary Housing (new) The City of Saratoga does not currently have an inclusionary housing ordinance. Therefore, the provisions will be implemented in a new City Code Article within Chapter 15 (Zoning Regulations). The new article number 15-82 follows Article 15-81 (Housing Density Bonus). 7 15-82.010 Purposes of Article. Consistent with other zoning regulations, the purpose statement introduces the article and states the overall reason why the Article is needed. 15-82.020 Definitions. Consistent with other zoning regulations, the ordinance includes definitions specific to below market rate (BMR) provisions, including for example “AMI” for area median income, “Household income level” for the different affordability categories included in the City’s RHNA, and “Residential development” as it specifically applies to the BMR regulations. 15-82.030 General Requirements. This section includes standards related to the size of the project that triggers the BMR requirements (“applicability”), the percentage of units within a project that must be restricted as affordable, rounding rules for fractional calculations, the requirements for household to qualify for the affordable unit, a requirement that the BMR units be built concurrently with the market rate units, standards related to the location and design of the BMR units, the number of years (term) that the units must remain affordable, crossover with density bonus law, administrative fees, and administrative oversight. • Applicability: All residential developments with at least five dwelling units are subject to the Ordinance. Accessory dwelling units are included in the calculation of dwelling units. • Percentage Requirement: At least 15 percent of the total number of dwelling units shall be deed restricted as affordable, at the following income levels. o Ownership units: Of the 15 percent BMR units, the minimum level of affordability shall be Moderate-income (~80 to 120 % AMI). o Rental units: Of the 15 percent BMR units, at least 50 percent must be affordable to very low-income households (50 percent or less of AMI). The remaining units shall be affordable to lower-income households (80 percent or less of AMI). • Rental Term: The rental units shall remain affordable for 55 years. • Ownership Term: The ownership units shall remain affordable for 45 years. 15-82.040 Restrictions on rental units. BMR rental projects shall be subject to a declaration of restrictions or similar instrument, sometimes referred to as a BMR Agreement. 15-82.050 Restrictions on ownership units. BMR ownership projects shall also be subject to a declaration of restrictions or similar instrument, sometimes referred to as a BMR Resale Restriction Agreement. This section includes specific provisions related to the sale of a BMR unit including the ability of the City to purchase (and resell) the BMR unit to ensure that it stays in the BMR program for the required term, foreclosure in the case of program noncompliance, resale price restrictions, notification of impending sale provisions, and other provisions considered necessary by the City to implement the BMR program. This section also includes provisions to sell the BMR home at market rate when a qualified lower- income household cannot be found within 180 days so as not to cause unreasonable delays in the sale of a BMR unit. 15-82.060 Alternative mitigations. The objective of the BMR program is the creation of on-site affordable units; however, this section allows the property owner to request alternative means of compliance such as the dedication of land, or the provision of units as part of a different project in the City. 8 Alternative compliance may only be approved by the City Council when the alternative furthers affordable housing opportunities in the City to a greater extent than providing units on-site. 15-82.070 BMR household eligibility and selection. This section requires BMR owners and BMR tenants to reside in the BMR unit as their primary place of residence and provides that more detailed procedures for determining BMR recipient eligibility will be specified in a set of BMR Guidelines to be developed and enforced by the City. This section also implements Program 4.3-2 (Housing for Persons Employed in Saratoga) by including in the selection criteria, a preference for households with at least one person who lives and/or works in the City or a person with a disability, to the extent allowed under state and federal law. 15-82.080 Waiver. If an applicant seeks a waiver, adjustment, or reduction in the provision of BMR units, they must demonstrate that the request will further the purpose of the Inclusionary Ordinance to increase the diversity, supply, and affordability of housing in the City; advance the City’s ability to meet its share of regional housing needs as required by state law. The City may assume that the applicant will provide the most economical BMR units feasible that meet the requirements; and that the applicant will benefit from incentives for the project available under the City code and State law. 15-82.090 Enforcement. This section includes penalties and cost recovery for violation of the BMR program requirements. This section also prohibits entitlement issuance and occupancy until all applicable requirements of the BMR program have been satisfied. 15-82.100 Appeals. Staff determinations may be appealed to the City Council. 15-82.110 Effective date. This section includes standard language regarding the effective date of the Ordinance. The effective date will be added following adoption by the City Council. ATTACHMENT Attachment 1 - Resolution No. 25-002 1883069.3 9 RESOLUTION NO: 25-002 A RESOLUTION OF THE CITY OF SARATOGA PLANNING COMMISSION RECOMMENDING APPROVAL OF AMENDMENTS TO CHAPTER 15 OF THE SARATOGA CITY CODE BY ADDING ARTICLE 15-82 TO IMPLEMENT INCLUSIONARY REQUIREMENTS PURSUANT TO POLICY 5.1-1 OF THE ADOPTED 2023-2031 HOUSING ELEMENT APPLICATION ZOA25-0002 The City of Saratoga Planning Commission finds and determines as follows with respect to the above-described application: WHEREAS, State Housing Element Law (Government Code Sections 65580 et seq.) requires that the City of Saratoga (the City) adopt a housing element for the eight- year period 2023-2031 to accommodate the regional housing need allocation (RHNA) of 1,712 housing units assigned to the City by the Association of Bay Area Governments, including 454 units affordable to very-low income households, 261 units affordable to low-income households, 278 units affordable to moderate-income households, and 719 units affordable to above moderate-income households; and WHEREAS, on March 20, 2024, the City Council adopted the 2023-2031 Housing Element (Housing Element); and WHEREAS, the Housing Element of the General Plan identifies and analyzes existing and projected housing needs and contains the official policies for the preservation, conservation, rehabilitation, and production of housing in the City of Saratoga; and WHEREAS, the 2023-2031 Housing Element Policy Program describes the specific policy actions necessary to address present and future housing needs and to meet the specific requirements of State law; and WHEREAS, the proposed amendments to the Chapter 15 (Zoning Regulations) of the Saratoga City Code are being proposed to implement Housing Element Programs 5.1-1 (Inclusionary Housing Ordinance) and 4.3-2 (Housing for Persons Employed in Saratoga) and; WHEREAS, on February 26, 2025, the Planning Commission held a duly noticed Public Hearing on the legislation described above at which time all interested parties were given a full opportunity to be heard and to present evidence and argument. The Planning Commission considered the amendments, staff report, correspondence, presentations from the public, and all testimony and other evidence presented at the Public Hearing. 10 Resolution No. 25-002 NOW THEREFORE, the Planning Commission of the City of Saratoga hereby finds, determines and resolves as follows: Section 1: The recitals set forth above are true and correct and incorporated herein by reference. Section 2: The City of Saratoga Planning Commission recommends that the City Council adopt an Ordinance to amend Chapter 15 (Zoning Regulations) of the Saratoga Municipal Code by adding Article 15-82 to implement inclusionary housing requirements pursuant to 2023-2031 Housing Element Programs as shown in Exhibit A. PASSED AND ADOPTED by the City of Saratoga Planning Commission on this 26th day of February 2025 by the following vote: AYES: NOES: ABSENT: ABSTAIN: ____________________________ Jonathan “JoJo” Choi Chair, Planning Commission Attachment: Exhibit A: Article 15-82 Inclusionary Housing Ordinance 1878164.1 11 DRAFT - Chapter 15 - ZONING REGULATIONS Article 15-82 INCLUSIONARY HOUSING ORDINANCE EXHIBIT A Public Review Draft Zoning Code Amendments City of Saratoga | 1 Article 15-82 INCLUSIONARY HOUSING ORDINANCE 15-82.010 Purposes of Article. This Article establishes the Below-Market-Rate Housing Program (BMR program) pursuant to the City’s inclusionary housing requirements. The purpose of this Article is to increase the diversity, supply, and affordability of housing in the City of Saratoga (City). The BMR program is a necessary part of the City’s efforts to meet its own housing goals as well as the regional housing needs of the Bay Area as required by state law. 15-82.020 Definitions. Terms used in this Article have the meanings set forth below: (a) “Affordable” means housing provided to households at a specified household income level at an “affordable housing cost” as defined in Health and Safety Code § 50052.5 or “affordable rent” as defined in Health and Safety Code § 50053. Where those sections specify the option, costs must not exceed 30 percent of gross income of the household. (1) “Housing cost” is defined in 25 CCR § 6920. (2) “Rent” is defined in 25 CCR § 6918. (b) “AMI” means the area median income for Santa Clara County, adjusted for household size, found in 25 CCR § 6932, as published periodically by HCD pursuant to Health and Safety Code § 50093. (c) “Below-market-rate (BMR) unit” means an ownership or rental unit under the BMR program that is affordable to low- and/or moderate-income households as this Article requires. (d) “BMR guidelines” means administrative guidelines for the BMR program. (e) “California Code of Regulations” or “CCR” means the State of California Code of Regulations. CCR references in this Article are preceded with a number that refers to the relevant Title of the CCR (e.g., "14 CCR" refers to Title 14 of CCR). (f) “Density bonus” means an approval of additional dwelling units, reduced parking, incentives, and concession or waivers of development standards under City Code Article 15-81 and Government Code § 65915, et seq. (g) “Floor area” is defined in City Code § 15-06.280. (h) “Gross income” is defined in 25 CCR § 6914. (i) “HCD” means the State Department of Housing and Community Development. (j) “Household income level” means the Official State Income Limits found in 25 CCR § 6932 for Santa Clara County for the respective levels below, adjusted for household size as found in 12 DRAFT - Chapter 15 - ZONING REGULATIONS Article 15-82 INCLUSIONARY HOUSING ORDINANCE 2 | City of Saratoga Public Review Draft Zoning Code Amendments the same regulation. The Official State Income Limits are determined and published periodically by HCD pursuant to Health and Safety Code § 50093. (1) “Very low-income household” is defined in 25 CCR § 6926 (approximately 50 percent or less of AMI). (2) “Low-income household” means a lower income household whose gross income exceeds the qualifying limit for very low-income households (approximately 50 percent to 80 percent of AMI). (3) “Lower income household” is defined in 25 CCR § 6928 (approximately 80 percent or less of AMI). (4) “Moderate-income household” is defined in 25 CCR § 6930 (approximately 80 percent to 120 percent of AMI). (5) If the income limit index referenced in this section, or successor indexes, are no longer published by HCD, then the Community Development Director shall select a successor index published by a federal, state, or county agency. In doing so, the Community Development Director shall select from their research the index that most closely corresponds with the previous index. (k) “Market-rate unit” means a housing unit or the legal lot for such a unit offered on the open market at the prevailing market rate for purchase or rental. (l) “On-site” means an affordable housing unit required by the BMR program is integrated with the project’s market-rate units and dispersed throughout the development according to the BMR program requirements. Except when required to develop senior housing in compliance with applicable laws, development of affordable units in a separate, stand-alone structure, even if that stand-alone structure is on the same parcel or assessor’s parcel number (APN) as the market-rate building, does not meet the definition of on-site. (m) “Residential development” means any development that includes an application to the City for planning or building permits to create one or more dwelling units, to convert nonresidential uses to residential uses, or to convert residential units from rental to ownership. As used herein, “residential development” includes, without limitation, rental housing; for-sale housing; mixed-tenure housing; mixed-use residential; detached single- family dwellings; duplexes; triplexes; multiple-family dwelling structures; condominium or townhouse developments; condominium conversions; and land subdivisions intended to be sold or rented to the general public. However, for purposes of this Article, housing developments in which all units are affordable to low- and/or moderate-income households and licensed community care facilities, as defined in Health and Safety Code § 1502(a), are excluded from the definition of residential development. 13 DRAFT - Chapter 15 - ZONING REGULATIONS Article 15-82 INCLUSIONARY HOUSING ORDINANCE EXHIBIT A Public Review Draft Zoning Code Amendments City of Saratoga | 3 15-82.030 General requirements. (a) Objective standard. The basic requirement of the BMR program is the provision of on-site BMR units integrated with market-rate units for both rental and ownership residential developments as set forth in more detail in this Article. (b) Application completeness. An application for a residential development project will not be complete until the applicant has submitted plans and proposals which demonstrate the manner in which the applicant proposes to meet the requirements of this article. (c) Agreement required. Prior to the recordation of any parcel map or final map in the case of subdivisions, or prior to the issuance of building permits for any residential development that does not require a subdivision, the applicant shall enter into an agreement recorded against the entire subdivision or property, requiring compliance with every applicable provision of this Article including, without limitation, the requirements of sections 15-82.030(f), (g), and (h), and the BMR guidelines. The agreement shall run with the land and bind the applicant’s and the landowner’s respective successors and assigns. The agreement shall additionally provide that the applicant shall be responsible for the City’s costs in preparing the agreement and any instruments required to be recorded by this Article, and that the applicant shall indemnify and hold the City harmless against any and all claims and harms arising from the applicant’s compliance with this Article. The City Council may approve a template agreement, any significant deviation from which will require City Council approval. (d) Applicability. The BMR program requirements shall apply to all residential developments with at least five dwelling units. Accessory dwelling units are included in the calculation of dwelling units. A residential development with fewer than five dwelling units is exempt from the BMR program. (e) Percentage requirement; affordability levels. All residential developments, unless otherwise exempted by this Article, shall provide at least 15 percent of the total number of dwelling units as affordable units. (1) Ownership units. All ownership residential developments that meet the requirement of Section 15-82.030(d) shall include at least 15 percent of the total number of ownership dwelling units within the development as units affordable to moderate-income households (approximately 80 percent to 120 percent of AMI]. (2) Rental units. All rental residential developments that meet the requirement of Section 15-82.030(d) shall include at least 15 percent of the total number of rental dwelling units within the development as units affordable to lower income households (approximately 80 percent or less of AMI). Of the 15 percent BMR units, at least 50 percent must be affordable to very low-income households (50 percent or less of AMI), including any remainder unit from an uneven division (notwithstanding Section 15-82.030(e)(3) below). (3) Modification. The affordability levels required for a residential development may be modified by the agreement entered pursuant to Section 15-82.030(c). An agreement 14 DRAFT - Chapter 15 - ZONING REGULATIONS Article 15-82 INCLUSIONARY HOUSING ORDINANCE 4 | City of Saratoga Public Review Draft Zoning Code Amendments including such a modification requires approval by the City Council, which may grant such approval only upon finding that such modification is necessary to achieve the City’s Regional Housing Needs Allocation (RHNA) goals in the then-current housing element cycle. (4) Fractions of units. In calculating the number of affordable units required, any fraction of a whole number shall be rounded up or down. Fractions of 0.00 to 0.49 shall be rounded down to the nearest whole unit, while fractions of 0.50 to 0.99 shall round up to the nearest whole unit. (f) Qualifying households. All BMR rental units shall be rented only to qualified lower- or moderate-income households, and all BMR ownership units shall be sold only to qualified lower- or moderate-income households. Rents, sales prices, and eligible household sizes for BMR units shall comply with the requirements pursuant to the BMR guidelines. (g) Concurrent development of on-site BMR and market-rate units. All BMR units in a residential development and phases of a residential development shall be constructed concurrently with or prior to the construction of market-rate units. In phased projects, on- site BMR units shall be distributed among the phases proportionally to the market-rate units. The City shall not issue certificate of occupancy for any market rate unit unless at the time of issuance the cumulative number of such certificates issued for market-rate units throughout the project would be proportional to the cumulative number of such certificates issued for BMR units (including BMR units issued certificates simultaneously to the market rate units). This concurrency requirement may be modified by the agreement entered pursuant to Section 15-82.030(c). An agreement including such a modification requires approval by the City Council, which may grant such approval only upon finding that the project would be financially infeasible without such modification. (h) Location and design of on-site BMR units. All BMR units shall be reasonably physically dispersed throughout the project. In residential developments with more than one building or product type, the BMR units shall be dispersed among all of the building and product types that comprise the development. Either or both of these dispersion requirements may be modified by the agreement entered pursuant to Section 15-82.030(c). An agreement including such a modification requires approval by the City Council, which may grant such approval only upon finding that financing for the project under any federal or state program for supporting below-market-rate housing would be unavailable without the modification. All BMR units shall be consistent with federal and state fair housing laws, have a distribution of units by number of bedrooms proportionate to distribution of the market-rate units, and be of comparable size with market-rate units based on floor area of the units, except that affordable units for seniors shall comply with applicable requirements for senior housing. The actual location of a BMR rental unit within a complex shall be permanently assigned to a particular dwelling unit. 15 DRAFT - Chapter 15 - ZONING REGULATIONS Article 15-82 INCLUSIONARY HOUSING ORDINANCE EXHIBIT A Public Review Draft Zoning Code Amendments City of Saratoga | 5 The exterior design of the BMR units shall be consistent with the market-rate units in the project and units shall be comparable in terms of interior design, appearance, materials, and quality of finishes. BMR units shall have the same access to project amenities and recreational facilities as market-rate units. BMR rental units shall be renovated on a similar schedule as market-rate units. (i) Term. BMR units shall be maintained as affordable housing for the term specified below. Housing cost and rent as defined in 15-82.020(a) must remain affordable to the BMR unit’s specified household income level for the specified term. (1) Rental units shall be subject to the restrictions of the BMR program for 55 years. (2) Ownership units shall be subject to the restrictions of the BMR program for 45 years. (j) Density bonus. Units provided in compliance with the provisions of this Article may be applied towards a request for a density bonus, provided that the affordable units meet the stricter of the BMR program requirements and the density bonus law. (k) Fees. Applicants for residential developments that meet the requirement of Section 15- 82.030(b) shall pay a fee for the costs to City of administering the BMR Program for the BMR units required by this Article in such amount as established from time to time by resolution of the City Council. Such fee shall be due and payable to the City as follows: for any residential development that requires a subdivision map (including a parcel map), prior to approval of the final map; or residential development that does not require a subdivision map, prior to the issuance of the first grading or building permit for the development. (l) Administration. The BMR program shall be administered by the Saratoga Community Development Director or Director’s designee, who may exercise any of the City’s authority under this Article, except that the Community Development Director shall not delegate the City’s authority to exercise an option under Section 15-82.050. The City shall issue BMR guidelines to implement the BMR program. The City may designate, appoint, or contract with any other public agency or for-profit or non-profit organization to perform some or all of the City’s obligations under the BMR program, subject to all applicable laws governing the City’s contracting authority. 15-82.040 Restrictions on rental units. (a) All buildings including BMR rental units shall be subject to a declaration of restrictions or similar instrument, in form and content approved by the City Attorney, to ensure compliance with this Article. Such declaration shall be recorded prior to the first certificate of occupancy for the building. (b) BMR rental units shall be available only to qualifying households pursuant to Section 15- 82.030(f) above. (c) BMR rental units shall be offered at affordable rent. 16 DRAFT - Chapter 15 - ZONING REGULATIONS Article 15-82 INCLUSIONARY HOUSING ORDINANCE 6 | City of Saratoga Public Review Draft Zoning Code Amendments 15-82.050 Restrictions on ownership units. (a) All BMR ownership units shall be sold subject to the following: (1) A recorded declaration of restrictions or similar instrument, in form and content approved by the City Attorney, securing compliance with the BMR program, including all requirements of this Section 15-82.050. The instrument shall include an option that entitles the City the first right to purchase a BMR ownership unit at the lowest of the following purchase prices: (i) Market value as determined by an appraisal acceptable to the City. (ii) The purchase price paid by the seller, plus one-third of the increase (during the period of seller’s ownership) in the Consumer Price Index, All Urban Consumers, San Francisco-Oakland-San Jose, published by the U.S. Department of Labor, Bureau of Labor Statistics. (iii) An amount equal to the price affordable to the household income level specific to the BMR unit. (2) A deed of trust, enforceable by the City, in form and content approved by the City Attorney, providing the City a security interest on which the City may foreclose for noncompliance with the BMR program. (b) Except as provided in this Section 15-82.050, BMR ownership units shall be sold at a purchase price that provides for an affordable housing cost on a monthly basis. (c) An owner of a BMR ownership unit shall provide the City a notification of intent to sell no later than 60 calendar days prior to listing the unit. An owner shall notify and receive approval from the City prior to initiating a refinance, title change, or transfer of ownership. The City is entitled to pursue all available remedies against an owner if an owner fails to notify and receive approval from the City, including the City’s exercise of its option to purchase the BMR ownership unit or a City action to foreclose on the BMR ownership unit under the City’s deed of trust. (d) The declaration of restrictions and deed of trust shall contain any other provisions considered necessary by the City to implement the BMR program, and shall be recorded against the property. Both instruments shall be executed by the owner and the City, and binding on successors in interest for at least the same duration otherwise required by the BMR program. The City may require that additional notices or other document(s) be recorded. A reference to the declaration of restrictions and deed of trust shall be included in all deeds or conveyances of BMR units. (e) Exceptions. (1) A BMR unit may be sold to a non-eligible household if the requesting party demonstrates: 17 DRAFT - Chapter 15 - ZONING REGULATIONS Article 15-82 INCLUSIONARY HOUSING ORDINANCE EXHIBIT A Public Review Draft Zoning Code Amendments City of Saratoga | 7 (i) Inability to obtain a qualified buyer after 180 days of good faith efforts that are reasonable according to then-current practices in Santa Clara County for sales of residential real estate; and (ii) The City has decided not to exercise its option to purchase the BMR unit. (2) A unit sold pursuant to Section 15-82.050(e)(1) above may be sold for market price. In any sale pursuant to such an exception, the seller will be entitled to the amount of the lowest price listed in Section 15-82.050(a)(1) above. The balance of the proceeds shall be paid to the City of Saratoga. The unit shall be sold subject to a recorded declaration of restrictions and deed of trust as described in 15-82.050(a), and prohibit sales or transfers of the property except with the written consent of the City and at the lowest purchase price listed in subpart (a) above. The declaration of restrictions shall also contain any other provisions considered necessary by the City to implement the BMR program. 15-82.060 Alternative mitigations. (a) The basic objective standard of the program is the creation of affordable housing integrated on-site in market-rate residential developments. As an alternative to building the affordable housing units on-site, developers of market-rate residential projects may submit a request to meet their BMR program obligations through other means, such as the dedication of land, the provision of units as part of a different project in the City, or other alternatives together with evidence that the means proposed will further affordable housing opportunities in the City to a greater extent than providing units on-site based on the standards in this Article and the BMR program. (b) Alternative mitigations may only be approved by the City Council and only if the City Council determines, in its independent judgement, that alternative proposed will further affordable housing opportunities in the City to a greater extent than providing units on-site based on the standards in this Article, the City’s RHNA goals, and the BMR program. 15-82.070 BMR household eligibility and selection. (a) Each tenant of a BMR rental unit or purchaser of a BMR ownership unit shall certify, prior to execution of the lease or close of escrow, in a form acceptable to the City, that the unit being rented or purchased shall be maintained as the household’s primary place of residence. (b) The BMR guidelines shall establish a procedure for potential tenants and purchasers of BMR units to register with the City and for the City to determine which registrants are eligible for BMR units and select occupants from eligible registrants. Criteria for selection shall include, to the extent allowed under state and federal law, preference for households including at least one person who lives and/or works in the City and/or who is a person with a physical disability and/or a mental disability, as defined in Government Code section 12926(j) and 12926(m), respectively. 18 DRAFT - Chapter 15 - ZONING REGULATIONS Article 15-82 INCLUSIONARY HOUSING ORDINANCE 8 | City of Saratoga Public Review Draft Zoning Code Amendments (c) The household income of each renter of a BMR unit shall be verified annually by the City to confirm the household’s continued income eligibility for the unit as set forth in the BMR guidelines and other procedures that the City may promulgate. 15-82.080 Waiver. (a) Upon an applicant’s request, the City Council may waive, adjust, or reduce the requirements of Section 15-82.030(e). The applicant shall bear the burden of demonstrating that the waiver, adjustment, or reduction is necessary to (a) further the purpose of this Article to increase the diversity, supply, and affordability of housing in the City and (b) advance the City’s ability to meet its share of regional housing needs as required by state law. (b) In considering a waiver request, the City may assume each of the following when applicable: (1) That the applicant will provide the most economical BMR units feasible that meets the requirements of this Article; and (2) That the applicant will benefit from incentives for the project available under the City code and State law. 15-82.090 Enforcement. (a) Any individual or household that rents, purchases, or sells a BMR unit in violation of the BMR program requirements or the intent of the BMR program shall be required to forfeit to the City all monetary amounts so obtained in excess of the permitted resale price or rental rates and shall be subject to all penalties authorized by law. If the City undertakes any enforcement action to obtain compliance with the requirements of the BMR program, the City shall be entitled to recover its attorney’s fees and staff costs for such enforcement effort. (b) No permit, license, subdivision approval or map, or other approval or entitlement for a residential development shall be issued, including without limitation a final inspection for occupancy or certificate of occupancy, until all requirements applicable to the residential development at such time under the BMR program have been satisfied. (c) The City Attorney is authorized to enforce the provisions of this Article and all agreements, restrictions, deeds of trust, or similar documents placed on BMR units, by civil action and any other proceeding or method permitted by law. (d) Failure of any official or agency to fulfill the requirements of the BMR program shall not excuse any applicant or owner from the requirements of the BMR program. (e) The remedies provided for in this Article shall be cumulative and not exclusive and shall not preclude the City from any other remedy or relief to which it otherwise would be entitled under law or equity. 19 DRAFT - Chapter 15 - ZONING REGULATIONS Article 15-82 INCLUSIONARY HOUSING ORDINANCE EXHIBIT A Public Review Draft Zoning Code Amendments City of Saratoga | 9 15-82.100 Appeals. Notwithstanding Article 15-90, appeals of staff determinations based on the administrative requirements of the BMR program as established in this Article and the BMR guidelines must be in the form of a written request by the appellant and addressed to the City Council. The City Council shall make the ruling, and all rulings shall be final. The City may establish cost recovery procedures for appeals. 15-82.110 Effective date. The provisions of the BMR program shall become effective on [effective date] and apply to all residential development applications received after that date. 1862679.26 20 REPORT TO THE PLANNING COMMISSION Meeting Date: February 26, 2025 Subject: Planning Commission Work Plan Address/APN: Citywide Owner / Applicant: City of Saratoga From: Cindy McCormick, Development Manager STAFF RECOMMENDATION: Staff recommend that the Planning Commission discuss its priority work plan items for the coming year and forward it to the City Council for input and direction at the Joint City Council Planning Commission Work Plan Study Session on March 18, 2025. No formal action is requested or may be made at a study session, but straw polls may be appropriate to indicate priorities. BACKGROUND: Each year, the Planning Commission discusses its potential Work Plan items for the coming fiscal year. The Council then reviews the suggested items in a joint session with the Commission or in another format and provides input and direction regarding where the Commission should focus its efforts. Attachment 1 is a copy of the Commission’s current Workplan ending in June 2025 (FY 2024-25) for reference. DISCUSSION: The Commission’s FY 2025/26 Work Plan will focus on the following core priorities: Saratoga Village Objective Design Standards While most of the Zoning amendments required under the 2023-2031 Housing Element have been reviewed by the Planning Commission and have been adopted or soon will be adopted by the City Council, the following program still needs to be completed. While the program will clearly not be completed by February 2025 (i.e., adopted by the City Council), the City intends to complete the adoption of this program by the end of the 2025 calendar year. 21 Planning Commission Work Plan Study Session February 26, 2025 Page | 2 The Housing Element provides: 3.3-3: Preserve the Historic Character of Saratoga Village. The City promotes preservation of the community’s historic downtown district referred to as “Saratoga Village,” and designated on the City’s adopted Land Use Map as the “Saratoga Village Plan Area.” The City’s preservation efforts include Adoption of detailed Village Design Guidelines in 2019 which regulate design, development, and land use in the Village Plan Area, and Cooperative programs with the Saratoga Village Development Council, a partner to the Chamber of Commerce that funds minor improvements throughout the Village Area and promotes commercial and community activities. Quantitative Objective/Metric: Review and update the Village Design Guidelines for compliance with SB 35. Geographic Target: Saratoga Village Time Frame: Complete by February 2025 The Village Design Guidelines were first adopted in 2019. City staff are working with Lisa Wise Consultants to prepare design standards and related zoning amendments required to implement Housing Element Program 3.3-3. The primary goal of this work is to develop and codify objective design standards that implement chapters 1 through 6 of the 2019 Village Design Guidelines. Public engagement will include stakeholder interviews with local architects/designers, developers, real estate professionals, Village business owners, Village residents and neighborhood group representatives, and other interested community members. The City will also prepare an online Community Questionnaire to spread awareness about the project and engage the community in the preparation of the Village Design Standards. With assistance from the consultant, the City will also hold one community-wide workshop on the emerging standards. The intent of the workshop is to better understand issues and preferences; present ideas and options; and solicit feedback and guidance from the public. The workshop content will be presented such that those with and those without design backgrounds feel welcome and comfortable participating. Most critically, the consultant will listen to and learn about the community’s concerns and objectives. The City will also hold an in-person joint PC/CC Study Session for further feedback and refinement of the emerging standards. The study session will include a presentation summarizing the community input received through the Stakeholder Interviews, Community Questionnaire, and Community Workshop. The input gathered at the joint Study Session will be reflected in the Final Analysis and Recommendations Memorandum. The consultant will then prepare a Public Review Draft for review and feedback at two study sessions, which may consist of a Planning Commission Study Session, City Council Study Session, and/or joint PC/CC Study Session(s). Based on the feedback received at the public Study Sessions, the consultant will prepare a final draft for review at a Public Hearing. Based on the Planning Commission’s recommendations and City Council’s final review and required text changes, the consultant will prepare the final Village Design Standards amendments. 22 Planning Commission Work Plan Study Session February 26, 2025 Page | 3 Pre-Approved Plans for Accessory Dwelling Units Pursuant to Assembly Bill (AB) 3321, as of January 1, 2025, all California jurisdictions must have a process for pre-approving ADUs. Pre-approved plans must then be listed online for homeowners to use. Accordingly, the City is developing a website that will include pre-approved plans in addition to other information that may be helpful to an applicant. To assist in this endeavor, the City has partnered with the Santa Clara County Planning Collaborative, an effort among the county's jurisdictions to help address our shared housing challenges including implementing state law. Under state law, “pre-approved” ADU designs have already been reviewed for building code compliance by local, state or federal agencies. For example, the pre- approved plans in the Town of Los Gatos’ ADU Plans Gallery have all been pre-approved by the Town and either HCD or HUD for building code compliance. Many of their plans are also WUI compliant. The City of Saratoga has full control of which pre-approved plans are included in our program. Furthermore, homeowners using a pre-approved design must still complete site planning, foundation plans and other elements specific to their property, but are eligible for an expedited 30-day permit review. Using a design from the Plans Gallery requires additional property- specific work to be completed with an architect, designer, or other professional before completing final permit applications. City staff will hold a study session with the Planning Commission in the near future to choose pre-approved plans for our gallery. It is recommended that the Commission consider a range of different sized ADUs (e.g., 800 square feet, 1,000 square feet). In the meantime, the Commission can review pre-approved plans from other jurisdictions that might be appropriate for Saratoga. The City can also use an ADU plan from a local designer or architect that is interested in participating in the program. Here are links for Campbell’s Gallery and Gilroy’s Gallery. Code Amendment to Implement State Law Each year the State adopts new laws that require changes to City Codes with respect to ADUs and other types of housing. Staff will bring forward the necessary amendments beginning in January or February of 2026. Minor Code Amendments Throughout the year, City staff identify items in the Zoning Ordinance that need clarification or to fix typos or to revise text to ensure consistency between code sections. This can be especially true when the City adopts a new General Plan or one its Elements, or undergoes a major change to the code, such as the recent changes to implement the Housing Element. For example, a minor amendment is needed to Article 15-21 - M-U (Mixed Use Zoning Districts) sections 15.21.100 (d) (1) and (2), 15.21.110 (e) (1) and (2), and 15.21.120 (e) (1) and (2) to clarify that density should be "per acre of net site area" (not gross site area) to be consistent with the recently adopted General Plan regarding mixed-use developments. The minor code amendment task is not currently scheduled but would likely happen sometime in the next six months. In the meantime, 23 Planning Commission Work Plan Study Session February 26, 2025 Page | 4 the City will process applications consistent with State law and the City of Saratoga General Plan which supersedes any inconsistencies in the Zoning Ordinance. Updated Standard Conditions of Approval In collaboration with the City Attorney’s Office, City staff are preparing standard conditions of approval to help ensure that planning entitlements include minimum requirements. The standard conditions will be reviewed on a case-by-case basis to determine applicability to a particular project. An example of a standard condition that would apply to all design review applications might look like the following: “All design review approvals granted pursuant to section 15- 44.030 shall expire on [DATE] (thirty-six months from the date on which the approval became effective), unless prior to such expiration date a building permit is issued, and construction commenced. If such building permit expires, and the Building Official does not renew the building permit within one hundred eighty days after expiration, the design review approval shall expire.” An example of a condition of approval that may not be applicable to all projects (e.g., a project where no trees are impacted) might look like the following: “Tree protection measures listed in the arborist’s report prepared by [ARBORIST] and dated [DATE OF REPORT] shall be implemented and included as notes on the title sheet of all grading and landscape plans.” Discretionary Planning Entitlements The Planning Commission will continue to review the following types of planning projects: • Appeals of Administrative Design Review decisions • Projects utilizing the Builder’s Remedy tool under the Housing Accountability Act • Any new main structure in an R-M, P-A, M-U, or C district • Conditional Use Permits, General Plan Text and Map Amendments, Tentative or Final Subdivision Maps, Variances, Zoning Text and Map Amendments Other Items If the Commission feels that other items deserve priority attention in this coming year, they should bring those items up for discussion at the Study Session. In addition to the upcoming fiscal year projects, staff wanted to highlight the following project coming to the Commission during the current fiscal year. House Family Vineyards CUP and EIR House Family Vineyards applied for a Conditional Use Permit to operate a winery at their property located at the end of Old Oak Way. The proposed project also includes construction of a subterranean (underground) wine cave and fire access road, Design Review for a tasting deck, and 24 Planning Commission Work Plan Study Session February 26, 2025 Page | 5 an open space easement exchange. Between November 4, 2024 and December 19, 2024, the City posted a 45-day Notice of Availability (NOA) of the Draft Environment Impact Report (DEIR) prepared for the project. On November 19, 2024, the City also held a community meeting to receive comments on the DEIR. The environmental consultant is currently preparing a response to comments submitted during the 45-day public review period. The next step in the process is to post the formal response to comments and hold a Public Hearing with the Planning Commission for a recommendation to the City Council. If approved, the conditions of the Use Permit will specify days and times of operation, so they are enforceable. The Planning Commission will review these specifications as part of their process before going to the City Council for final approval. This project is tentatively scheduled for review by the Planning Commission on April 9, 2025 and the City Council on May 7, 2025. ATTACHMENT 1. 2024/25 Work Plan (for reference only) 1885269.1 25 Attachment A: 1.2-4: Lot Consolidation Program:The City has identified nine parcels within housing opportunity sites that could benefit from lot consolidation incentives. These parcels range in size from 0.28 to 0.46 acres. To facilitate lot consolidation, the City will implement a program with following incentives: •Transfer of Development Rights for housing •Waived fees and expedited processing •Develop a graduated density scale based on parcel size to encourage voluntary private actions to consolidate lots to be at least 0.75 to 1 acre in size to facilitate quality infill development. •Increased Floor Area •Increased Building Height •Reduced Setbacks •Parking Reduction: Required parking may be reduced subject to finding that due to lot consolidation adequate parking will be available to serve the subject project; •Signage Bonus: Area of permitted signs within mixed use zones may be increased, subject to finding that the increased size of signs on one consolidated parcel will not adversely affect the visibility of signs on adjacent parcels. The City will advertise the lot consolidation provisions to existing property owners and prospective mixed-use and affordable housing developers. Advertisement actions may include preparation and distribution of a brochure with information about program incentives and an invitation to attend a working session to discuss opportunities for lot consolidation and mixed-use residential development, including affordable housing development. Implement program by September 2024. Engage property owners and developers by December 2024 and promote program throughout planning period. If by mid-way through the RHNA cycle (2027), trends indicate a potential shortfall in meeting the estimated units for area for all small sites in the inventory, modify the program to provide additional incentives to encourage lot consolidation and/or identify additional sites to expand site capacity to the extent necessary to accommodate the RHNA. 1.2-6: Conversion to Duplexes and Triplexes:To increase housing opportunity and mobility beyond identified RHNA sites, the City will amend the Zoning Ordinance to allow conversion by right of existing, conforming single family residences to up to three units (i.e., into a duplex or triplex), in addition to one ADU and one Junior ADU (and one additional ADU if located in existing converted space and the duplex or triplex will be in addition) as permitted by State law, and subject to objective development standards to be prepared by the City. These conversion units (attached or detached) would be permitted in residential areas in the specific portions of the R-1- 20 and R-1-40 zones that are outside of the Wildland Urban Interface (WUI) and Very High Fire Hazard Severity Zones and have adequate water and sewer service (refer to Figure 6-12 in Section 6, Sites Inventory). To further incentivize this program, application fees will also be 26 waived. This will include at least 1,300 parcels and the City estimates 100 units could potentially be developed during this planning period. The City will conduct a mid-cycle evaluation to examine progress of the conversion units program and make adjustments to the program if the City is not on track to meet the objective. This may include expanding outreach efforts to homeowners in target areas, conducting annual information sessions, offering additional incentives or concessions or additional land use strategies such as increasing densities (e.g., SB 10), rezoning to allow duplexes, fourplexes and smaller multi-family uses to encourage housing choices throughout the City. Seek conversion of single-family homes to create 100 new units in duplexes and/or triplexes converted from existing single-family homes throughout the planning period. Geographic target: R-1-20 and R-1-40 zones outside the WUI and Very High Fire Hazard Severity Zones. Post information on the conversion units program to the City’s website by June 2024. Review Objective Design Standards by 2025 3.2-1 Amend Zoning Standards in Districts that Allow Mixed-Use and Multi-Family: Adopt the following amendments to development standards in Zoning Districts that allow Mixed- Use to remove constraints and achieve the maximum density allowed: CH-1 District •Reduce required residential parking standard from 2.5 to 1.5 spaces/unit (1.0 covered). •Reduce required parking standard for office, service, retail, and financial institutions from 1/200 sf to 1/250 or 1/300 sf. CH-2 District •Increase building height limit to 35 feet/3 stories to allow 3-story buildings, or 2 stories of residential over shared parking. •Reduce required residential parking standard from 2.5 to 1.5 spaces/unit (1.0 covered). •Reduce required parking standard for office, service, retail, and financial institutions from 1/200 sf to 1/250 or 1/300 sf. •Edit design standard requiring 70 percent of ground-floor building frontage to be built within 10 feet of the front setback line to apply only to parcels where lot frontage conforms to the standard. P-A District •Increase building height limit to 35 feet/3 stories to allow 3-story buildings or 2 stories of residential units over shared parking. •Apply upper-story setback to only a portion of building length, such as 50 percent, instead of the whole building length. This would achieve the desired effect of reducing the building mass while also allowing greater flexibility in the design of the building’s upper stories. •Reduce 35-foot setback abutting R-1 or R-M zones to 25 feet. Non-residential uses, particularly any uses with impacts such as noise or outdoor lighting, could be subject to the existing 35-foot setback standard. 27 •Increase maximum lot coverage from 30 to 40 percent. C-V and C-N Districts •Increase building height limit to 35 feet/3 stories to allow 3-story buildings, or 2 stories of residential units over shared parking. •Reduce required residential parking standard from 2.5 to 1.5 spaces/unit (1.0 covered). •Reduce required parking standard for office, service, retail, and financial institutions from 1/200 sf to 1/300 sf. •Simplify standards for setbacks in the C-N zone, which are difficult to interpret. •Reduce 30-foot interior side and rear setback abutting R-1 zones to 15 or 20 feet. Non- residential uses, particularly any uses with impacts such as noise or outdoor lighting, could be subject to the existing 30-foot setback standard. Adopt Code Amendments by: September 2024 3.2-9: Modify Design Review Findings for Objectivity:The City will amend the Design Review findings for single-family and multi-family projects to ensure they promote certainty and objectivity. Adopt code amendments to facilitate construction of 1,253 units. Adopt updated findings by December 2024 3.2-10: Modify Single-Family Residential Design Review Handbook: The City will amend the Single-Family Residential Design Review Handbook to have objective design standards. Adopt updated Handbook by December 2024 3.3-3 Preserve the Historic Character of Saratoga Village (ensure Village Design Guidelines are objective): The City promotes preservation of the community’s historic downtown district referred to as “Saratoga Village,” and designated on the City’s adopted Land Use Map as the “Saratoga Village Plan Area.” The City’s preservation efforts include: •Adoption of detailed Village Design Guidelines in 2019 which regulate design, development, and land use in the Village Plan Area, and •Cooperative programs with the Saratoga Village Development Council, a partner to the Chamber of Commerce that funds minor improvements throughout the Village Area and promotes commercial and community activities. Complete by February 2025 4.1-1 Density Bonus Ordinance Review:Under Government Code Section 65915-65918, for housing projects of at least five units, cities must grant density bonuses up to 50 percent (depending on the affordability provided by the housing project) when requested by the project sponsor and must provide up to three development design incentives or concessions unless specific findings can be made. The City of Saratoga has adopted Density Bonus provisions within Section 15-81 of its Zoning Code consistent with State law. 28 Review sate law annually and update Municipal Code within 6 months of review, as needed. 4.3-2 Housing for Persons Employed in Saratoga:The City shall explore opportunities to provide additional local housing options for the city’s workforce, including rental housing for families. As part of the proposed inclusionary housing ordinance (Program 5-1.1), the City will implement a local preference program that prioritizes Saratoga workers and persons with special needs. The City will also continue to look for opportunities to increase public awareness of the City’s housing assistance programs such as partnering with West Valley College to explore student and faculty housing development and other employers in Saratoga (churches, etc.). Addresses fair housing contributing factors relating to a lack of affordable housing. Adopt code amendment by February 2025 4.3-4: Religious Institutional Sites:Allow housing on all religious institutional sites by-right if at least 20 percent of the units are set aside for very low-, low-, or moderate-income units within the City. Conduct outreach to owners and operators of religious institutions to raise awareness and encourage housing proposals and offering technical assistance with religious institutions including assisting with partnerships with non-profit developers. Religious Institutional sites zoned R-1 will be allowed a minimum of 30 and maximum of 40 dwelling units per acre. Religious institutional sites in the R-1 zone will be limited to three stories with a maximum height of 36 feet. If no application for housing on a religious institution/faith-based site is received by December 2027, the City will expand outreach efforts to be conducted annually. This may include direct mailings to faith-based sites highlighting successful affordable housing units on other faith-based sites, as well as available City resources and programs to support such projects.Support the development of 100 housing units on religious institutional sites affordable to lower income households by January 2031. Geographic target: Citywide Zoning Amendments completed. Determine which development standards apply by June 2025 5.1-1: Inclusionary Housing Ordinance: Amend the Zoning Ordinance to require new multi- family housing developments consisting of five or more units will be required to dedicate 15 percent of the units as affordable housing to moderate income households. Addresses fair housing contributing factors relating to a lack of affordable moderate-income housing. Construct 289 affordable units by 2031 to expand housing mobility opportunities for moderate-income households. Geographic target: Citywide Adopt code amendment by February 2025. 29