Resolution 2012-41I
RESOLUTION NO. 2012-41
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY
APPROVING RDO HE 12 -02, AN APPLICATION FOR A HOUSING
EXEMPTION FROM THE RESIDENTIAL DEVELOPMENT
ORDINANCE FOR A PROPERTY LOCATED WEST OF MONTEREY
STREET, EAST OF WREN AVENUE, AND NORTH AND SOUTH OF
THE FUTURE COHANSEY AVENUE EXTENSION, APNS 790- 06 -16,
790 -06 -032, AND 790-06 -033
WHEREAS, South County Housing ( "Prior Applicant ") submitted AHE 06 -01,
requesting an Affordable Housing Exemption from the Residential Development Ordinance
( "RDO ") to build the Harvest Park residential project of two hundred and sixty (260) units; and
WHEREAS, Prior Applicant received City Council approval of AHE 06 -01on May 1,
2006 through the provisions of Zoning Ordinance section 50.62(b)(3); and
WHEREAS, Prior Applicant is an agency that meets the sponsoring agency requirements
of Section 50.62(b)(3); and
WHEREAS, Prior Applicant has retained ownership of the subject parcels but is working
with The James Group ( "Applicant "), to develop the Harvest Park project; and
WHEREAS, Applicant has submitted RDO HE 12 -01 to obtain approval of a revised
pricing structure for the homes within the Harvest park subdivision; and
WHEREAS, the City has determined that the Harvest Park project may proceed under the
affordable pricing structure approved via AHE 06 -01; and
WHEREAS, the City has determined that the review and approval of an application for a
Housing Exemption from the RDO does not confer any entitlement for residential development
IAC\1066407.1 RESOLUTION NO. 2012 -41
092412- 04706089
N
and therefore is not a "project" for the purposes of review pursuant to the California
Environmental Quality Act; and
WHEREAS, the City Council may grant the requested RDO exemption only if it
determines that the application meets the criteria set forth in Zoning Ordinance section
50.62(b)(3) and said application was submitted pursuant to 50.62(b)(3), the criteria whereof are
set forth and fully discussed in the Staff Report dated January 24, 2006 ( "Staff Report "), which
is attached hereto as Exhibit A; and
WHEREAS, the Planning Commission reviewed application RDO HE 12 -02 at duly
noticed public hearings on July 26, 2012 and August 23, 2012, and recommended that the City
Council approve the project for the construction of ninety -one (91) market -rate units; and
WHEREAS, the City Council reviewed application RDO HE 12 -02 and all documents
relating thereto and took oral and written testimony at its duly noticed public hearings on
September 10, 2012, and determined that it could not approve 91 market -rate units, but could
approve 91 units with the pricing structure approved via AHE 06 -01; and
WHEREAS, the location and custodian of the documents or other materials which
constitute the record of proceedings upon which this project approval is based is the office of the
City Clerk.
NOW, THEREFORE, BE IT RESOLVED THAT
A. The City Council hereby finds as follows:
1. The project complies with Zoning Ordinance section 50.62(b)(3) in that it would
substantially benefit the City, and would not create significant negative impacts
oiai2�io6M9 RESOLUTION NO. 2012-41
3
to public facilities, to providers of public services in the community, or to the
Gilroy Unified School District. The City Council makes these findings based on
facts as set forth in the record, including the attached Staff Report.
2. The project is in compliance with Zoning Ordinance section 50.62(b)(3) criteria
based on the number of units previously awarded to this project; the project's
affordability and the community's need for Very Low, Low, and Moderate
Income housing; the number of affordable housing projects in the vicinity; the
diversity of unit types in the Harvest Park development, such as single - family
homes and apartment units; and the consistency of the project's site design with
City standards.
B. RDO HE 12 -02 should be and hereby is approved subject to the conditions in the
attached Staff Report, along with three additional conditions, as follows:
1. The Applicant shall be subject to the requirements of the "RDO Affordable
Housing Exemption Procedure" policy.
2. The developer shall sign a contract agreeing to the provisions contained
within the "RDO Affordable Housing Exemption Procedure," prior to
approval of an Architectural and Site review for this site.
3. The Applicant shall obtain approvals ( "Approvals ") for a Tentative Map,
Final Map, and PUD Architectural & Site Review, and such other approvals
as the City considers necessary.
092412-04706W9 RESOLUTION NO. 2012-41
4
4. The Applicant shall obtain all Approvals within two (2) years from the date of
Housing Exemption approval, otherwise the Housing Exemption approval
shall be deemed automatically revoked. Upon application prior to the
expiration of the approval and for good cause shown, the Planning Division
Manager may grant an extension of time not to exceed one year.
PASSED AND ADOPTED this I st day of October, 2012, by the following vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSTAIN: COUNCILMEMBERS:
ATTEST:
Freels, City
DILLON, LEROE- MUNOZ, TUCKER,
WOODWARD
ARELLANO
BRACCO, PINHEIRO
APPROVED:
ert Pinheiro, Mayor
09241P�06089 RESOLUTION NO. 2012 -41
City of Gilroy
Community Development Department
Planning Division
is 7351 Rosanna St.
Gilroy, CA
(408) 846 -0440
AFFORDABLE HOUSING EXEMPTION
January 24, 2006
File Number: AB E 06 -01 (encompass #06010024)
Applicant: South County Housing (c/o Karen Saunders, 842 -9181)
Location: Property located west of Monterey Road, north and south of the future extension of
Cohansey Avenue
Staff Planner: Melissa Durkin (mdurkin @ci.gilroy.ca.us)
REOUESTED ACTION:
The applicant, South County Housing, requests a 260 -unit Affordable Housing Exemption for the Rancho
del Sol project.
DESCRIPTION OF PROPERTY:
Parcel Number: 790 -06 -016, 029, 030, 032, and 033
Parcel Size: 36 acres
Flood Zone: Zone B, Panel # 0603400002D, Panel Date: 8/17/98
STATUS OF PROPERTY:
Existing Land Use General Plan Designati on
Ag., Undev., Residential Neighborhood District/LDR
STATUS OF SURROUNDING PROPERTY:
Existing Land Use
General Plan Designation
N: Vet. Office, Ag.
Neighborhood District
S: Ag., Undev., Res.
Neigh. Dist./LDR
E: Res., Indus., Ag.
Rural Residential
W: Agricultural
Neighborhood District
Zoe
Neigh. Dist/ PUD, County
Zoning
Rl -PUD
Neigh. Dist./Rl
County Zoning
County Zoning
AHE 06 -01 2 1/24/06
CONFORMANCE OF REQUEST WITH GENERAL PLAN:
The proposed project conforms to the land use designation for the property on the General Plan map, and is
consistent with the intent of the text of the General Plan document, particularly the Housing Element portion.
ENVIRONMENTAL IMPACTS:
This application examines the proposed project's consistency with the City's Residential Development
Ordinance exemption process; it does not result in granting any entitlements for residential development.
Therefore, the City's action on this application does not constitute "approval of a Project" for purposes of
CEQA review. The City will require CEQA review if the applicant receives approval of this Small Project
Exemption, and submits subsequent applications to develop this property.
OVERVIEW OF THE RANCHO DEL SOL PROJECT:
The Rancho del Sol project, a master - planned residential community, will have the following components:
► 260 Homes
► Commercial Component
• 23 live/work units (living portion is included in the residential tally for condominium/loft units)
► Private Open Space Areas
ANALYSIS OF REQUEST:
The applicant is requesting approval of an Affordable Housing Exemption from the RDO under the provisions
of Zoning Ordinance section 50.62 (b) (3), to allow the construction of 260 affordable housing units, as
follows (see Exhibit A for details):
• 66 Market Rate Homes
61 single-family homes ($750,000-$825, 000)
A 5 condominiunw7ofts ($695, 000)
• 104 Affordable Homes
D 104 single-family homes ($250,000-$525, 000)
• 90 Condominiums or lofts
67 condominiums ($225,000-$400, 000)
D 23 lofts ($205,000-$250, 000)
AHE 06 -01
1/24/06
Zoning Ordinance section 50.62 (b) (3) governs affordable housing developments that are constructed by
agencies that receive government funding. Under this section, up to 75 units within each of the following
categories of housing may be exempted from the City's Residential Development competition process: (a)
single family homes, (b) condominiums or townhouse ownership units or (c) rental units. [Note: South
County Housing is currently processing a Zoning Ordinance text amendment (see Z 06 -01) that will provide
flexibility in the number of units an applicant may propose for an exemption. This Affordable Housing
Exemption request cannot be approved as proposed unless the City Council approves Z 06 -01.]
As stated in section 50.62 (b) (3), the City Council may grant RDO exemptions for affordable housing projects
if the project is determined to meet specific criteria. This Zoning Ordinance section states that the City
Council shall consider the following elements in determining whether to grant this exemption:
a. The number of exempt units which have already been granted during the current RDO
cycle, and the number of years left in the cycle;
b. The affordability of the project;
C. The need for the types of units which are proposed;
d. The number of affordable housing projects constructed or proposed within the project
vicinity;
e. The diversity of unit type and architectural styles which are proposed in the entire
development; and
L The site design and proposed building elevations.
Staffs determination of this project's consistency with these exemption criteria follows:
A. The number of exempt units which have already been granted during the current RDO cycle, and
the number of years left in the cycle
The City Council allocated 530 affordable housing units in the 2004 -2013 RDO cycle (see Exhibit B).
Applications have been submitted for 436 of these units. If the City Council awards 260 units to South
County Housing for the Rancho del Sol project, only ninety -four (94) affordable housing units will be
available for the eight years remaining in the RDO cycle. The City Council has not set a policy
restricting allocation of affordable housing units. Therefore, Staff believes this project is Consistent
with this criterion.
B. The affordability of the project
The sales prices of the homes in this development are delineated in Exhibit A. As proposed, the
development will meet the full spectrum of incomes, from very low to market rate. However, the
percentage of units at each income level differs from the percentages listed in the City's "RDO
Affordable Housing Exemption Procedure." The following chart compares the applicant's proposal
with the City's policy:
AHE 06 -01 4 1/24/06
The applicant proposes to sell 25% of the units at market rate prices, which is not a part of the price range
included within the "RDO Affordable Housing Exemption Procedure." In addition, the applicant proposes
far fewer units in the 1150 to 60 %" and "60 to 100 0/6" categories than the policy's standard. The applicant
provides the following rationale for proposing prices do not strictly comply with the ranges set forth in the
"RDO Affordable Housing Exemption Procedure ":
► South County Housing needs market -rate units to provide the deep subsidies needed to construct the
very low - income units, which is an affordability level the City does not require developers to meet;
and
► Providing homes at all levels of affordability will create a mixed- income community that is likely
more sustainable than a strictly low - income neighborhood.
► The market -rate units will offset the cost of amenities, such as private parks and a bridge to the
future City park.
Percentage of
Income Levels
Number of
Affordable Units
Number of
Required in
Affordable Units
Resulting from
Affordable Units
percentage of
the RDO
Units Resulting
Exemption
Required by the
Adherence to RDO
Offered by the
from Applicant's
Procedure
RDO Exemption
Exemption
Applicant's
Proposal
Procedure
Procedure
Proposal
Document
Standards
42% to 50%
of the median
N/A
N/A
39
15%
income
50% to 60%
of the median
104
40%
38
15%
income
60% to 70%
of the median
0
0%
income
78
30%
70% to 100%
of the median
59
23%
income
100% to
110% of the
58
22%
median
income
78
30%
110% to
120% of the
0
0
median
income
Market Rate
N/A
N/A
66
25%
Income Levels
Total
260
1000/0
The applicant proposes to sell 25% of the units at market rate prices, which is not a part of the price range
included within the "RDO Affordable Housing Exemption Procedure." In addition, the applicant proposes
far fewer units in the 1150 to 60 %" and "60 to 100 0/6" categories than the policy's standard. The applicant
provides the following rationale for proposing prices do not strictly comply with the ranges set forth in the
"RDO Affordable Housing Exemption Procedure ":
► South County Housing needs market -rate units to provide the deep subsidies needed to construct the
very low - income units, which is an affordability level the City does not require developers to meet;
and
► Providing homes at all levels of affordability will create a mixed- income community that is likely
more sustainable than a strictly low - income neighborhood.
► The market -rate units will offset the cost of amenities, such as private parks and a bridge to the
future City park.
AHE 06 -01 5 1/24/06
The City's Housing & Community Development (HCD) staff has reviewed the proposed price structure
and determined that the approach to providing affordable ownership units to a wide range of lower income
households is appropriate, because fifty -two percent of the units are affordable (defined as being below
eighty percent of median income).
The City's policy does not address the issue of providing market -rate units in exchange for providing very-
low income units. However, because of the large number of affordable units in this geographic area, staff
believes that allowing market -rate units in this development will create a more sustainable project (see
criterion D for discussion of this issue).
Staff believes this project is Marginally Consistent with this criterion.
C. The need for the types of units which are proposed
The City's Housing Element has documented the need for very low, low, and moderate income housing.
Staff believes this project is Consistent with this criterion.
D. The number of affordable housing projects constructed or proposed within the project vicinity
The following affordable projects have been constructed in the vicinity of this project:
► Sobrato Transitional Center: 140 -bed homeless shelter and 60 transitional apartment units
(Monterey Road north of Farrell Avenue, Developer: South County Housing)
► Alderwood: 60 low- income single- family homes [Note: 17 of these homes have been sold, and
are now market rate.]
(South of Farrell Avenue, between Church Street and Monterey Road; Developer: South County
Housing)
► Gilroy Garden Apartments: 74 low-income apartment units
(South of Farrell Avenue, east of Wren Avenue; Developer: CBM Group)
► Gilroy Park Apartments: 74 low- income apartment units
(East of Wren Avenue, South of Farrell Avenue; Developer: CBM Group)
As this list shows, there are 251 affordable housing units and a homeless shelter constructed or proposed
near this site. If this exemption request is approved, there will be 445 very low to moderate income
housing units and a homeless shelter constructed within an approximate V2 mile area. Although this could
be considered an over - concentration of affordable housing units, there are some factors that may mitigate
the impacts of these units:
®' There are four distinct types of units that will be constructed in this area (rental apartment units,
owner - occupied single family homes, owner - occupied condominium units, and transitional
housing units).
Taken as a whole, the housing projects in this 1/2 mile area are affordable to Very Low, Low,
Median, Moderate, and Market -Rate income groups. Because these projects are affordable to a
mixture of incomes, people of various incomes and backgrounds are living together. In the long
term, this creates more sustainable neighborhoods, and better planned communities.
AHE 06 -01 6 1/24/06
®' This property is planned for a Neighborhood District development, and will be denser than
traditional single - family neighborhoods, regardless of whether the units are targeted toward
affordable households.
e' There are 66 market rate units proposed for this project.
®° Seventeen of the units constructed as affordable units in the Alderwood projects have transitioned
to market -rate units, and others will likely transition to market rate in the future.
Therefore, considering these mitigating factors, Staff believes this project is Marginally Consistent with
this criterion.
E. The diversity of unit type and architectural styles which are proposed in the entire development
There will be several different housing types within the Rancho del Sol project. These are:
Single - family market -rate homes
®° Single family median and below- market -rate homes
Single family low- income homes
®° Condominiums
,r, Live/Work units
In addition, South County Housing has worked to create a wide mix of different architectural designs in
this development, which will add architectural interest to the street (see attached elevations). Staff
believes this project is Consistent with this criterion.
F. The site design and proposed building elevations
The applicant has submitted a preliminary site plan. Following is an analysis of the site plan's strengths,
and some of the project's issues and concerns.
Project Strengths:
Staff evaluated this application and determined that the project has the following strengths:
► The project proposes mixed - income, mixed- density development.
► The project appears generally consistent, in terms of design and density, with City standards.
► The developer has proposed to locate the multi- family housing away from established single -
family neighborhoods.
Issues & Concerns:
Staff has the following concerns with this project:
► Staff will need to determine whether the project meets Neighborhood District Standards
► The developer will need to locate the bridge across the channel so that it does not directly abut
residential properties.
ABE 06 -01
7 1/24/06
► This project proposes a higher density than anticipated in the City's water, sewer and storm
master plans. The developer will need to pay for the City's consultant to prepare supplemental
studies, which could require on -site water detention.
Prior To Development, The Applicant Will Be Required to:
#1. Complete a CEQA environmental review
#2. Complete a Tentative Map to subdivide the property
#3. Complete a Master Plan and Architectural & Site Review through the PUD process
Staff believes this project is Consistent with this criterion.
STAFF RECOMMENDATION:
This proiect is consistent with the Zonine Ordinance criteria for exempting affordable housing
units, and recommends that the Planning Commission forward a recommendation of
APPROVAL of this request to the City Council. If this project is approved, staff recommends
that the following conditions be applied to this approval:
1. Approval of this application is contingent upon City Council approval of Z 06 -01.
2. The developer shall sign a contract agreeing to the provisions contained within the "RDO
Affordable Housing Exemption Procedure," prior to approval of an Architectural and Site review
for this site.
3. The Applicant shall obtain approval of a Tentative Map, Final Map, and PUD Architectural &
Site Review.
4. Time Limits for Approval: If the approvals set forth in condition 3 above have not been obtained
within two (2) years from the date of this ABE approval, then this AHE approval shall be
automatically revoked without further action by the City. Upon application prior to the expiration
of this AHE approval and for good cause shown, the Planning Division Manager may grant an
extension of time not to exceed one year.
Respectfully,
William Faus
Planning Division Manager
bfaus @ci.gilroy.ca.us
I, SHAWNA FREELS, City Clerk of the City of Gilroy, do hereby certify that the
attached Resolution No. 2012 -41 is an original resolution, or true and correct copy of a city
resolution, duly adopted by the Council of the City of Gilroy at a regular meeting of said Council
held on the 1St day of October, 2012, at which meeting a quorum was present.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of
the City of Gilroy this 2nd day of)1?ctober, 2012.
City Clerk of the City-of Gilroy
(Seal)