The site is currently improved with two (2) existing buildings, which are currently occupied by Precious Years Children’s Center, a preschool/daycare.  The applicant is proposing to demolish the two (2) existing buildings and construct ten (10) new, detached, two-story apartment units, recreation areas, and associated parking and landscaping improvements.  The project qualifies for application of State Density Bonus Law allowances for density, concessions and incentives, along with State-wide parking standards.  Within the project, 25 percent of the base density units will be reserved for low-income households through a 55-year Density Bonus Housing Agreement with the City of Garden Grove.  A Development Agreement is also included in the proposal.

On December 1, 2016, the Planning Commission held a Public Hearing to consider Site Plan No. SP-031-2016 and Development Agreement No. DA-004-2016.  Two (2) members of the public came forward to speak in opposition to the project.  Concerns raised by the public related to on-street parking and traffic issues, and a 53 signature petition in opposition of the request, echoing the same concerns, was also submitted.  By a vote of 3-3 (with one Commissioner absent), a motion to approve SP-031-2016 and to recommend approval of DA­-004-2016 failed.  Based on there being no decision by the Planning Commission to approve or deny the project, staff is requesting City Council consideration of the subject entitlements. Furthermore, State law and Section 9.12.030.070(H) of the Garden Grove Municipal Code provide that if the application is consistent with the Density Bonus regulations, denial of the application must be supported by a written finding, based upon substantial evidence, of one of the following:

a. The waiver or modification is not necessary to make the housing units economically feasible.

b. The waiver or modification would have a specific adverse impact upon health, safety, or the physical environment, and there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact without rendering the development unaffordable to low- and moderate-income households. For the purpose of this subsection, “specific adverse impact” means a significant, quantifiable, direct, and unavoidable impact, based on objective, identifiable, written public health or safety standards, policies, or conditions.

c. The waiver or modification would have an adverse impact on any real property that is listed in the California Register of Historical Resources.

Staff has not identified evidence of any of the foregoing factors, and is recommending approval of the application.

Site Plan

Based on the lot size, the maximum allowable density for the subject site, under the Municipal Code, is eight (8) dwelling units.  However, the proposed design is for ten (10) units.  The proposal for the ten units is a 25 percent density increase over the allowable number of units in the R-2 (Limited Multiple-Family Residential) zone. The State Density Bonus Law became effective on January 1, 2005.  In response, the City Council adopted Ordinance No. 2668, which amended Title 9, Section 9.12.030.070 of the Garden Grove Municipal Code to be in conformance with State law. The Ordinance states that "the California Legislature has determined that the provision of affordable housing for moderate, lower and very low-income individuals ... [is] of primary importance in the state and must be encouraged at the local level."  The applicant and property owner have developed their proposal based on the allowances of the State Density Bonus Law. The proposal for ten (10) units meets the requirements of the State Density Bonus Law and Ordinance No. 2668.

The proposal must provide a minimum of one (1) target unit reserved for low-income households to increase the density by 20 percent.  The applicant, however, exceeds the minimum by providing three (3) target units reserved for low-income households.  State law provides additional bonuses for increases over the minimum number of required target units.  Based on the provision of three (3) targets units, the applicant is eligible for a maximum 35 percent density bonus, pursuant to State law. The maximum number of units allowed, under State law, with the maximum 35 percent density bonus applied, is eleven (11) units.  However, the applicant is only proposing ten (10) total units for the project. State Density Bonus Law allows a developer to request up to a maximum of three (3) concessions or incentives based on the percentage of affordable housing target units provided in the development, and also based on the target group (i.e., very-low income, low-income, moderate income, etc.) they are reserved for. A concession/incentive is a waiver of a City Code development standard/requirement.

The applicant is proposing three (3) concessions/incentives, as provided by State Law, which include: (i) a reduced separation between residential units and drive aisles; (ii) a reduced separation between residential units and guest parking areas; and (iii) a reduced separation between buildings. Since the applicant is applying for three (3) concessions, State law requires that a minimum of three (3) target units must be reserved for low-income households. The project meets this minimum requirement by providing three (3) target units reserved for low-income households.  The incorporation of the three (3) concession/incentives allow the project to accommodate the increased density as well as provide for a design that improves the functionality and usability of the development for its residents and guests.  Additionally, the project complies with all other development standards of the R-2 zone. Parking requirements for the project are determined by the State Density Bonus Law, which requires 2.5 parking spaces per unit.  Based on the ten (10) proposed units, a minimum of 25 parking spaces are required.  The project exceeds the parking requirements by providing a total of thirty (30) parking spaces (20 enclosed garage parking spaces, and 10 open guest parking spaces). Please see the attached Project Summary Chart detailing the proposed project with Density Bonus Law applied.

Development Agreement

The proposed Development Agreement will ensure that the Applicant constructs the project in accordance with the approved Site Plan within a period of four years.  The City will receive a Development Agreement payment not to exceed $19,160.  Development Agreement payments are designed to provide benefits to the public in return for an extended period within which to construct the project.

It is recommended that the City Council:

• Conduct a Public Hearing;
• Adopt the attached Resolution approving Site Plan No. SP-031-2016 to construct a 10-unit, two-story apartment complex, at 9691 Bixby Avenue, with a 25 percent affordable housing density bonus and Density Bonus Housing Agreement; and
• Introduce and conduct the first reading of the attached Ordinance approving Development Agreement No. DA-004-2016, between the City of Garden Grove and Tony Le and Dung Nguyen, for the property located at 9691 Bixby Avenue, Garden Grove.

By:  Chris Chung, Assistant Planner