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Item No. 1.
MEETING DATE: September 9, 2024
TO:	PLANNING COMMISSION
FROM:	SUSAN KIM, DIRECTOR OF COMMUNITY & ECONOMIC DEVELOPMENT By: Ash Syed, Senior Planner
SUBJECT:	A DULY NOTICED PUBLIC HEARING TO CONSIDER A REQUEST FOR DESIGN REVIEW 24-0007 TO CONSTRUCT A 19-UNIT APARTMENT COMPLEX ON THE SOUTHEAST CORNER OF STEARNS AVENUE AND SUNSET STREET, AT 1002, 1010, AND 1026 EAST STEARNS AVENUE (ASSESSOR’S PARCEL NUMBERS: 303-113-01, -02, AND, -03).

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):

This project was reviewed pursuant to the guidelines of the California Environmental Quality Act (CEQA) and determined to be categorically exempt under Section 15332, Class 32: "In-fill Development Projects" of the CEQA Guidelines in that the project is consistent with the General Plan designation and all applicable General Plan policies and with the applicable zoning designation and regulations, the project site is less than five acres and surrounded by urban uses, the project site has no value as habitat for rare or endangered species, approval of the project would not result in significant impacts to traffic, noise, air quality or water quality, and the site can be adequately served by all utilities and public services. The project is also not subject to any of the exceptions for exemption under Section 15300.2 of the CEQA Guidelines. The cumulative impact of this project, and the approval of other projects like it in the vicinity, is not expected to have any significant environmental impact. The project is not located along any state-designated scenic highway nor within any designated hazardous waste site. Staff does not expect any significant impacts or unusual circumstances related to the approval and construction of the project.

RECOMMENDATION:

That the Planning Commission approve and adopt:

A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF LA HABRA, CALIFORNIA, MAKING THE REQUIRED FINDINGS AND APPROVING DESIGN REVIEW 24-0007 TO CONSTRUCT A 19-UNIT APARTMENT COMPLEX ON THE SOUTHEAST CORNER OF STEARNS AVENUE AND SUNSET STREET, AT 1002, 1010, AND 1026 EAST STEARNS AVENUE (ASSESSOR’S PARCEL NUMBERS: 303-113-01, -02, AND, -03), AS PER THE APPROVED PLANS AND SUBJECT TO CONDITIONS, AND MAKING THE DETERMINATION THAT THE PROJECT IS EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) PURSUANT TO SECTION 15332, CLASS 32: "INFILL DEVELOPMENT PROJECTS" OF THE CEQA GUIDELINES.

DISCUSSION:

The Applicant, Greg Jones from GSJ Stearns, LLC, is requesting approval of Design Review 24-0007 to construct a 19-unit apartment complex on a 0.93-acre property, located at the southeast corner of Stearns Avenue and Sunset Street, at 1002, 1010, and 1026 East Stearns Avenue (see Exhibit 1 below). The project site comprises three parcels, located approximately 170 feet west of Harbor Boulevard and 470 feet north of La Habra Boulevard. Although a Tentative Parcel Map would typically be processed concurrently with the Design Review to merge the three parcels, the Applicant has requested to process the map after approval of the Design Review. Therefore, a condition of approval has been included requiring a Parcel Map to be recorded with the county to merge the three existing parcels prior to the issuance of any building permits pertaining to this project, to ensure that none of the proposed buildings are constructed over an existing lot line and that all building setbacks are met. Pursuant to Chapter 17.12 (Parcel Maps) of the La Habra Municipal Code (LHMC), the Parcel Map will be subject to the review and approval of the Planning Commission at a future meeting prior to being recorded with the county.

The project site is designated by the General Plan for Mixed-Use Center 3 land use and is located within the La Habra Boulevard Specific Plan (SP-1) Zone. The subject property was once part of the Burch Ford dealership, which is now vacant. The subject property was previously the portion of the dealership on which commercial trucks were parked and stored. The remainder of the former dealership is owned by two other property owners: 555 Star Development, LLC owns the property at the northwest corner of La Habra Boulevard and Harbor Boulevard, where the dealership previously displayed vehicles; and ANA Properties, LLC owns the property at the southwest corner of Stearns Avenue and Harbor Boulevard, formerly occupied by the parts and service department, on which buildings were recently demolished. Surrounding properties and their General Plan land uses designations, zoning and existing land uses are shown in Table 1.

Exhibit 1: Vicinity Map

Table 1: Surrounding Land Uses

Location	General Plan Land Use Designation	Zoning	Existing Land Use
North:	Residential Multi-Unit 1	Multi-Unit Dwelling (R-4)	Apartments
East	Mixed-Use Center 3	La Habra Boulevard Specific Plan	Vacant
South, across alley	Mixed-Use Center 3	Commercial (C-2)	Vacant lot/Single-Unit Residential
West, across North Sunset Street:	Medium Density Residential	Multi-Unit Dwelling (R-3)	Multi-Unit Residential

Attachments 3-7 provide detailed plans for the proposed project which are summarized and described in this section. The Applicant is proposing to construct an apartment complex that will consist of 19, two-bedroom units in three buildings. An 11-unit building (Building 1) will front Stearns Avenue; and, two, four-unit buildings (Buildings 2 and 3), will be located in the southern portion of the property, adjacent to the public alley. All three buildings will be three stories (34.5 feet in height), with building footprints of 7,601 square feet for Building 1 and 2,764 square feet for Buildings 2 and 3, and an overall lot coverage of 36%. Exhibit 2, below, and Attachment 3 depict the site plan.

Exhibit 2: Site Plan

Vehicles will be able to access the property from driveways on both Stearns Avenue and Sunset Street, which will lead to uncovered parking and garage spaces. Per Section 18.14.060 of the La Habra Municipal Code, for each proposed unit, the proposed project must include two covered garage spaces, 0.5 uncovered parking spaces, and 0.5 guest parking spaces, which equates to three spaces per unit or a total of 57 parking spaces for the 19 units. The proposed project provides 19 two-car garages, accessed by a driveway in the middle of the project; 10 additional unassigned parking spaces for residents, that are located in the middle of the development, and in the southeast corner of the development, which include four Level 2 electric vehicle charging stations; and nine spaces for guest parking, located on the eastern edge of the property, which include two ADA accessible spaces; for a total of 57 spaces. Therefore, the proposed project meets the La Habra Municipal Code requirements for parking.

The City's Traffic Manager also anticipates that the proposed number of vehicle trips generated by the 19-unit development will be negligible. A Traffic Study would be required if the project generated 40 or more pm peak hour trips. The proposed project is anticipated to generate less than 40 trips during the pm peak hour. To ensure the project will not result in adverse traffic impacts, the Applicant will be required to provide a trip generation study as a condition of approval.

Each of the 19 units features the same overall floor plan, with 1,334 square-feet of living space. The first floor of each unit features a two-car garage, a den/office, and a patio area with a staircase leading to the second floor. Two of the 11 units have been designed to be ADA-accessible and will include a half-bath on the first floor as well. The upper floors feature the primary living space with the kitchen, dining area, living room, and a full bathroom on the second floor and two bedrooms on the third floor. Exhibit 3, below, and Attachment 4 depict the proposed floorplans.

Exhibit 3: Floorplans

The Conceptual Landscape Plan, shown in Exhibit 4 below and in Attachment 5, features a variety of evergreen and deciduous trees in addition to accent palm trees, shrubs, and ground cover well suited to the local climate. Crape Myrtle and Brisbane Box trees are placed along the Sunset Street frontage, the access easement along the southern boundary of the site, and the Stearns Avenue driveway. Arbutus Standard trees have been placed along the Stearns Avenue frontage as well as next to the trash enclosure at the southeast corner of the site. Various shrubs such as Heavenly Bamboo, Wire Glass, and English Lavender have been placed at the common open space area as well as along the two drive access points. Lastly, the unit entrances are each decorated with Rosemary, Texas Privet, and Jack Spratt Flax shrubs as well as Festuca California, Begonia Sempervirens, and Shredded Bark ground cover. Staff reviewed the Conceptual Landscape Plan and found it to be suitable for a multi-unit residential complex as proposed. Additional landscape conditions have been included as part of the conditions of approval. These include requirements to increase tree sizes, include enhanced paving treatments, and consider the use of decorative pottery or other structured methods of protecting plant materials. Per section 18.14.070.D of the La Habra Municipal Code, designated parking areas are subject to a minimum of 7% landscaping. To satisfy this, the project includes 9% landscaping within the landscape planter adjacent to the guest parking spaces along the eastern property line.

Exhibit 4: Landscape Plan

As shown below in Exhibit 5 and in Attachment 6, the Applicant has proposed Spanish-influenced architecture consistent with the requirements of the La Habra Boulevard Specific Plan Zone. The architecture features a variety of accents including earth-tone stucco finishes, clay tile roofing, wrought iron balconies, and arched design cues. The ground floor garage doors are comprised of “Tea Mist” anodized metal with an “Independent Gold” colored stucco and light fixtures along the lower portion of the building. The second and third floors of the buildings consist of a “Dirty Martini” sand-colored stucco accented by dark “True Brown” awnings and “Loggia” tan faux shutters on each of the windows facing the interior drive aisle as well the exterior of the site. Additional pop-out accents along the sides of each building provide a varying perception of depth. The roof of the buildings features a 15-degree pitch and is finished with a “Houstonian Blend” red clay tile. “Tea Mist” brown exposed wooden rafters will be visible under the eaves and pop-outs along the drive aisle. The northern and southern facias will feature arched balconies with wrought iron railings. The ground floor patio areas for each unit will be enclosed by a 4-foot tall “Slump Block Beige” CMU wall. The buildings have an ultimate height of 34.5 feet at peak, just under the maximum building height of 35 feet, as permitted for multi-unit developments within the La Habra Boulevard Specific Plan Zone.

Exhibit 5: Building Elevations

As shown above in Exhibits 2 and 4 and below in Exhibit 6, as well as Attachments 3, 5 and 7, the proposed development offers a 1,267-square-foot common open space area located near the middle of the southern portion of the site. This area features a large grassy area for communal gatherings and dog walking, as well as a children’s swing set, picnic tables, an overhead trellis for shade, and a BBQ grill. As a condition of approval, the proposed project must include a park bench and dog waste bag dispensers in this area. The 114 square foot and 115 square foot patio and balcony, respectively, within each unit also satisfy the private open space requirement.

Exhibit 6: Open Space Amenities

Per section 18.44.040.F of the La Habra Municipal Code, the open space requirements for multi-unit developments within the La Habra Boulevard Specific Plan Zone are as described in the table below:

Open Space Type	Minimum Dimension	Minimum Square Footage	Proposed Dimensions	Proposed Square Footage
Common Area	15 ft	400 sqft	~ 26 ft x 58 ft	1,267 sqft
Private Area (Ground Floor Patio)	8 ft	96 sqft	~ 10 ft x 13 ft	114 sqft
Private Area (Upper Floor Balcony)	7 ft	70 sqft	~ 7 ft x 8.5 ft	115 sqft

Community lights will include building and pole-mounted LED products. The development will be well-illuminated along both street frontages, along the interior drive aisle, and designated guest parking area. The project has been conditioned to include a Photometric Plan for staff’s review to ensure compliance with Section 15.60.100 of the La Habra Municipal Code prior to the issuance of any building permits pertaining to this project.

The proposed project is subject to Chapter 18.82 (Inclusionary Housing Units) of the La Habra Municipal Code (LHMC), which applies to all residential development projects in the City that consist of 10 or more units. The purpose of this chapter is to "...to develop housing that would be affordable to households of very low, low, or moderate incomes, meet the city's regional share of housing needs, and implement the goals and objectives of the general plan and housing element." Pursuant to Chapter 18.82, the Applicant has the following options:

Construct affordable housing on-site within the residential project.
Construct affordable housing off-site, provided that the Applicant acquires and manages the off-site property.
Pay in-lieu fees, charged at $6.50 per square foot of building space for the project’s total floor area.
Acquire and reconstruct existing units as affordable housing.
Any combination of the above options.

The Applicant has chosen to pay the in-lieu fee. Pursuant to Chapter 18.82, the fee will be used by the City to enter into joint venture agreements with developers to construct affordable housing. Pursuant to LHMC Section 18.82.100 (Monitoring and Enforcement) the City is required to evaluate the effectiveness of this chapter every three years after the operative date of Chapter 18.82, which was May 5, 2021. Pursuant to this section and direction from the Planning Commission at their April 22, 2024 meeting, staff is in the process of preparing a report to evaluate the effectiveness of this chapter, including the in-lieu fee.

In accordance with Government Code section 65583, each city’s housing element must include an inventory of land suitable and available for residential development to meet the locality’s housing need for each of the designated income levels of the assigned Regional Housing Needs Assessment (RHNA) allocation. Additionally, if the City allows development of a site with less units by income level than identified in the housing element for that site, the City must make written findings supported by substantial evidence as to whether there are remaining sites identified in the Housing Element to accommodate the City’s share of regional housing needs, including a quantification of the remaining unmet need for each income level.

The subject property is identified as Site #11 in Table HE-4.4 (RHNA Production and Sites Credit) of the City's 2021-2029 Housing Element, and anticipated for the development of 39 units affordable to moderate-income households and seven units affordable to low-income households. However, although the site is identified in the Housing Element, the Applicant is not obligated to develop the site in accordance to the anticipated number or affordability of units in Table HE-4.4, it is merely a projection of what could be developed on the site. As stated above, rather than providing affordable housing within the proposed project, the Applicant has elected to pay the City's in lieu fee. Therefore, none of the units can be credited towards meeting the City's Lower or Moderate Housing RHNA allocations, and all 19 units will be credited towards meeting the City's Above Moderate RHNA allocation.

Exhibit 7 below depicts Table HE-4.6 (Summary of RHNA Strategy) from the City's Housing Element. The City received a RHNA allocation of 804 units to plan for the 2021-2029 planning period. However, the Housing Element, as noted in the table below, includes strategies for the potential development of 1,232 units, exceeding the City’s RHNA allocation. This buffer was necessary in order to address the no net loss requirement of maintaining an adequate inventory of sites. While the proposed project does not provide the number of housing units of each identified income level as assumed in Table HE-4.4 of the Housing Element, there are more than sufficient sites remaining that are identified in the Housing Element to accommodate the City’s share of regional housing for the 2021-2029 planning period.

Exhibit 7

Table HE-4.6 Summary of RHNA Strategy
Credit Categories	Housing Affordability
Credit Categories	Lower	Moderate	Above	Total
RHNA Credits
Production Credits (Table HE-4.2)	7	61	248	316
ADUs (projected 2021-2029)	168	72	0	240
Site Capacity (Table HE-4.4)	423	107	146	676
Sub Total of Credits	598	240	394	1,232
RHNA Requirement (Units)	308	130	366	804
Unmet Need	0	0	0	0
Source: City of La Habra, 2022 Note: Lower income represents the sum of very low and low income together. The Housing Plan includes a program to track the progress made toward the 2021-2029 RHNA and make any adjustments as necessary to achieve the goals set forth therein.

ANALYSIS:

Pursuant to LHMC Section 18.44.050.F (Design Review), since the proposed project is located within the La Habra Boulevard Specific Plan Zone, it is subject Design Review approval by the Planning Commission. Pursuant to LHMC Section 18.68.050 (Findings) of Chapter 18.68 (Design Review), prior to the approval of the Design Review, the Planning Commission must make the required findings listed below; following each finding is staff's analysis of the proposed project's ability to meet the required finding.

1. The proposed project is consistent with the City's General Plan.

Per the General Plan, the property has a land use designation of Mixed-Use Center 3. This designation envisions commercial development as well as multi-unit housing characterized by apartments, condominiums, townhouses, and live/work loft arrangements that include common open space areas. The proposed 19-unit development is consistent with the General Plan’s vision for this site. The Mixed-Use Center 3 land use designation also allows for the development of up to 50 dwelling units per acre (du/ac). The proposed 19-unit project is designed with a density of 22 du/ac, which does not exceed the property’s maximum allowable count of 42 units.

This project implements the following policies of the La Habra General Plan 2035 LU 1.2 (Development Capacity) by accommodating the type and density of land use depicted in the Land Use Diagram, LU 2.1 (Places to Live) by adding for-rent housing in La Habra, LU 4.1 (Development Compatibility) by requiring that development is located and designed to assure compatibility among land uses, addressing such elements as building orientation and setbacks, buffering, visibility and privacy, access, and impacts of noise and lighting, LU 4.4 (Design Review) by requiring design review that focuses on achieving appropriate form and function to assure compatibility with community character, while promoting creativity, innovation, and design quality, LU 5.5 (Revitalization of Obsolete and Underused Properties) by facilitating the revitalization of vacant properties, LU 7.2 (New Residential Development) by establishing new residential development, LU 7.3 (Housing Character and Design) by establishing Spanish influenced design guidelines such as clay tile roofs, wrought iron accents and trims, and arched entryways and balconies to be incorporated into the design of the proposed development, LU 9.2 (Amenities) by the Applicant providing a communal landscaped area with sitting areas, H 1.3 (Support Private Sector Housing Production) by facilitating the production of new housing for the community, H 2.5 (Adequate Housing Sites through Land Use and Zoning of the La Habra General Plan 2035) by proposing a multi-unit residential apartment complex on a site that has the anticipated residential land use within the La Habra Boulevard Specific Plan. Therefore, the proposed project is consistent with the City’s General Plan

2. The proposed project is consistent with the City's Zoning Ordinance.

The subject property is located within the La Habra Boulevard Specific Plan (SP-1) Zone. The development standards for the La Habra Boulevard Specific Plan Zone are codified in LHMC Chapter 18.44 (SP-1 La Habra Boulevard Specific Plan Zone). Based on staff's review of the project, as described in this staff report, the project complies with the development standards per Chapter 18.44 of the Zoning Ordinance including building setbacks, height limits, design guidelines, landscaping, open space, and on-site parking. Therefore, the proposed project is consistent with the City's Zoning Ordinance.

3. The proposed project is in the best interest of the public health, safety, and welfare of the community.

The Zoning Ordinance and General Plan are tools to ensure that all projects achieve goals that promote the public health, safety, and welfare of the community. The proposed multi-unit development is located within the La Habra Boulevard Specific Plan Zone and is consistent with the anticipated land use. The Water/Sewer Division sewer and water plans provide a map of the sewer and water pipelines for the overall area and the location the lines will feed into the project location. Staff has determined that the project’s design provides sufficient access for public safety personnel such as Fire and Police and will be serviced by sanitary sewers and storm drains. The City's Traffic Manager also anticipates that the proposed number of vehicle trips generated by the 19-unit development will be negligible. A Traffic Study would be required if the project generated 40 or more pm peak hour trips. The proposed project is anticipated to generate less than 40 trips during the pm peak hour.

4. For projects that are subject to the objective design standards set forth in Chapter 18.09 of this title, the proposed project is consistent with those standards. For projects that are not subject to the objective design standards set forth in Chapter 18.09 of this title, the nature of the proposed land uses and the design is appropriate for the proposed location and compatible with the surrounding land uses and improvements.

Pursuant to LHMC Section 18.09.030.A, the objective design standards do not apply if the property is within a specific plan, overlay, and/or planned unit development that already implements design standards, in which case those standards shall prevail. Because the subject property is located within the La Habra Boulevard Specific Plan Zone, the objective design standards set forth in Chapter 18.09 of the LHMC do not apply.

As aforementioned, the site is located within the La Habra Boulevard Specific Plan Zone and the anticipated land use permits multi-unit developments of up to 50 du/ac. The proposed density of 22 du/ac is well under this limit. Further, the surrounding properties to the north, south, and west also feature residential developments of various sizes that were constructed as early as the 1920s to as recently as the mid-1960s. The design of the project takes into consideration the property’s location and provides adequate onsite access and interior circulation. The proposed site design provides access to Stearns Avenue to the north as well as Sunset Street to the west. The building setbacks, ADA requirements, onsite amenities, and parking are all consistent with the development standards for multi-unit developments. Therefore, the nature of the proposed land uses and the design is appropriate for the proposed location and compatible with the surrounding land uses and improvements.

5. The project complies with all requirements of the California Environmental Quality Act.

FISCAL IMPACT/SOURCE OF FUNDING:

The Applicant has paid for the processing cost associated with the Design Review, which totals $6,532.00

NATIONAL POLLUTANT DISCHARGE ELIMINATION SYSTEM (NPDES):

The proposal was reviewed pursuant to the requirements of the National Discharge Elimination System (NPDES) and the Local Implementation Plan (LIP). The proposed project is the redevelopment of an existing vacant site into a new 19-unit residential complex. The site aerial photo shows the current state of the property as well as the surrounding parcels. A conceptual WQMP was reviewed and approved by the City’s Engineering department by the City’s Public Works Division which addresses the topography, stormwater collection basins, and proposed water drainage paths for the site. Project-specific conditions pertaining to stormwater discharge and infiltration have been included as part of the conditions of approval. The underground stormwater infiltration basin for the development is located at the southern portion of the site, in the common open space area.

GENERAL PLAN RELEVANCE/CITY COUNCIL GOALS & OBJECTIVES:

The project is consistent with the following General Plan policies:

LU 1.2 Development Capacity
LU 2.1 Places to Live
LU 4.1 Development Compatibility
LU 4.4 Design Review
LU 5.5 Revitalization of Obsolete and Underused Properties
LU 7.2 New Residential Development
LU 7.3 Housing Character and Design
LU 9.2 Amenities
H 1.3 Support Private Sector Housing Production
H 2.5 Adequate Housing Sites through Land Use and Zoning of the La Habra General Plan 2035

The project is consistent with the following City Council goals and objectives:

Goal 5: Development Activity and Business Assistance
Objective Q: Facilitate the development of high-quality housing, at a variety of income levels, to help meet projected demand, as set forth in the Regional Housing Needs Assessment (RHNA).