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Item No. 2.

MEETING DATE: May 11, 2026

TO:

PLANNING COMMISSION

FROM:

SUSAN KIM, DIRECTOR OF COMMUNITY & ECONOMIC DEVELOPMENT
By: Sonya Lui, Planning Manager

SUBJECT:

CONSIDER AND PROVIDE A RECOMMENDATION TO THE CITY COUNCIL REGARDING AN ORDINANCE APPROVING ZONE CHANGE 26-0002 TO AMEND VARIOUS SECTIONS OF TITLE 18 (ZONING) IN ORDER TO IMPLEMENT MINOR CONDITIONAL USE PERMIT REGULATIONS, IMPROVE INTERNAL CONSISTENCY WITHIN TITLE 18 (ZONING) AND CLARIFY AND CONSOLIDATE USE REQUIREMENTS THAT AIM TO FURTHER ACCOMMODATE NON-RESIDENTIAL USES IN THE CITY'S NON-RESIDENTIAL ZONES AND MIXED-USE OVERLAY ZONE.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):

Zone Change 26-0002 (ZC26-0002) was reviewed pursuant to the guidelines of the California Environmental Quality Act (CEQA) and determined to be exempt pursuant to Sections 15378(b)(5) and 15061(b)(3) of the CEQA Guidelines. ZC26-0002 is not a project pursuant to Section 15378(b)(5) of the CEQA Guidelines because it is an administrative activity of the City that will not result in direct or indirect physical changes in the environment. Even if ZC26-0002 were considered a project under CEQA, it would be exempt pursuant to Section 15061(b)(3) (Common Sense Exemption) of the CEQA Guidelines because the proposed amendments to the La Habra Municipal Code have no possibility of having a significant effect on the environment.

RECOMMENDATION:

That the Planning Commission approve and adopt:

RESOLUTION NO. 26-08 - A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF LA HABRA, CALIFORNIA, RECOMMENDING THAT THE CITY COUNCIL ADOPT AN ORDINANCE APPROVING ZONE CHANGE 26-0002 (ZC26-0002) TO AMEND SECTIONS 18.04.030 (TERMS DEFINED), 18.06.040 (LAND USES), 18.12.140 (OUTDOOR SEATING AREA), 18.12.170 (SMOKING LOUNGES), 18.14.060 (NUMBER OF SPACES REQUIRED), 18.23.030 (SIGN MATRIX), 18.44.020 (USES), AND 18.62.020 (DEFINITIONS), AND ADD SECTION 18.12.190 (REMEDIATION SYSTEMS) TO TITLE 18 (ZONING) OF THE LA HABRA MUNICIPAL CODE IN ORDER TO ENABLE THE CITY TO IMPLEMENT MINOR CONDITIONAL USE PERMIT REGULATIONS, IMPROVE INTERNAL CONSISTENCY WITHIN TITLE 18, AND MODIFY VARIOUS REGULATIONS BY CLARIFYING AND CONSOLIDATING USE REQUIREMENTS AND MAKE A DETERMINATION THAT THE ORDINANCE IS EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) PURSUANT TO SECTIONS 15378(b)(5) AND 15061(b)(3) OF THE CEQA GUIDELINES

DISCUSSION:

A conditional use permit (CUP) is a permit that requires discretionary approval from a city. These types of permits consent to a use not allowed by-right in a particular zone and are issued at the discretion of a local jurisdiction. Just as the name implies, the permit application is approved under a set of conditions, and those conditions are set by the jurisdiction that the land falls within. As an example of how a CUP would be applied to a given type of project, if a property owner in La Habra wanted to develop a car dealership on a property that is designated by the General Plan for Neighborhood Commercial land use and is located within the C-1 (Limited Commercial) Zone, the use would require the approval of a CUP. In evaluating the dealership’s application to build in that zone, the City's Planning Division staff would consider the compatibility of the car dealership with its surrounding areas. Additionally, staff would consider issues such as noise, traffic flow, and other factors that may affect the area and may recommend that the proposed use meet a set of conditions to receive a permit. For example, staff may recommend that the Planning Commission require that the dealership close before 8:00 p.m. so that their business operation does not adversely impact any adjacent residential land uses. If the property owner does not comply with the conditions of approval, the CUP can be revoked by the City. Over the years, there have been requests by business and property owners to consider changes to the City's CUP regulations in order to create a more "business friendly" environment and help reduce costs for certain types of businesses to become established in the City.

On June 17, 2024, the City Council directed staff to initiate amendments to the La Habra Municipal Code (LHMC) related to CUPs for non-residential uses in the City’s commercial and industrial zones, including the creation of a new category of CUP called a Minor Conditional Use Permit (MCUP). Other changes recommended changes in the June 17, 2024 staff report were to:

Allow restaurants by right but continue to require a CUP for drive-through facilities (restaurants and other facilities such as drive-through pharmacies and banks) and continue to require a CUP for alcohol beverage sales and services.
Revise the following use categories: Health clubs/spas; educational institutions including private schools, elementary, middle and high schools, colleges and universities, daycare and tutoring; and commercial schools (dance studios, martial arts, music, and vocal instruction) into the following use categories:

Dance and Fitness Studios Large (4,000 or more square feet) – Require CUP
Dance and Fitness Studios Small (under 4,000 square feet) – Permit by right
Educational Institutions - General (elementary, middle and high schools, colleges and universities) – Require CUP
Educational Institutions – Tutoring (academic, music, art and vocal instruction) – Permit by right
Commercial Day Care – Require a Minor CUP

Require a MCUP instead of a CUP for “Retail stores selling pre-owned merchandise”
Replace the term “Dog kennels” with “Animal boarding”; create a new category “Animal grooming”; consolidate and permit these uses and “Animal Hospital/Veterinary Clinic” by right if they are located entirely indoors, and by CUP if there are any outdoor areas for the animals.
Consolidate the use “Clinic/urgent care facility (medical office without patient treatment; no overnight stay with outpatient treatment; no overnight stays)” with “Doctor/dentist office” and “Medical laboratories (not part of a medical office)” and permit these uses by right (Doctor/dentist offices and Medical laboratories are currently permitted by right)
Consolidate “Administrative and professional offices (remove “medical” because it is already covered above)” with “General business offices” and permit by right.
Permit “Remediation Services” by MCUP
Permit “Showrooms” by right instead of by CUP

Staff also recommended updating Chapter 18.04 (Definitions), to make sure that each type of use is clearly defined. In addition, staff recommended potential updates to Chapter 18.12 (Special Development Standards) and Chapter 18.14 (Off-Street Parking Requirements), to make sure that any additional requirements that may be needed for certain uses that would be permitted by right and would not have conditions of approval, would be appropriately addressed in these chapters. In addition, staff recommended reorganizing the Land Use Matrix, which identifies which uses are permitted, require a CUP, or are prohibited, to consolidate similar uses with the same permitting requirements, and format the table to make it easier to find specific uses (potentially alphabetically). Finally, in conjunction with the creation of the MCUP, staff would need to determine the appropriate fee level and approval process for this type of permit. The staff report for the June 17, 2024 meeting is provided as Attachment 2.

On June 2, 2025, the City Council introduced an ordinance to establish procedures for MCUPs, which was subsequently adopted as Ordinance No. CC 2025-03 on June 16, 2025. The staff report for the Council's consideration of this item on June 2, 2025 is provided as Attachment 3. The proposed fee for the MCUP was adopted as part of the approval of the Master Schedule of Fees, also on June 2, 2025, and was most recently increased to $412 on May 4, 2026. Table 1 provides a comparison of the requirements for a CUP and a MCUP.

TABLE 1

Requirement	CUP	MCUP
Fee	$7,203	$412
Approval Authority	Planning Commission	Community and Economic Development Director ("Director") unless: 1) The Director receives objections to a MCUP application which cannot be resolved by the Director, in which case the MCUP would be referred to the Planning Commission, and the application would be considered one for a CUP and the proceedings by the Planning Commission would be held in the same manner required for a CUP; or 2) The MCUP application is made in conjunction with, and as a part of, a project that requires Planning Commission action, in which case the application would be made to the Planning Commission. In such instances, the proceedings by the Planning Commission would be held in the manner required for a CUP.
Notice	A Notice of the Public Hearing is sent to the applicant and each property owner within three hundred feet of the exterior boundaries of the property involved and published in the newspaper.	Prior to the Director making a decision, a Notice of the Request will be sent to owners of all properties adjacent to and directly across the street from the exterior boundaries of the property involved, providing at least 10 working days for objections or comments to be submitted to the Director
Public Hearing	Public Hearing required	No Public Hearing, unless a request is referred to the Planning Commission.
Appeal Review Authority	City Council	Planning Commission. The Planning Commission's decision may then be appealed to the City Council.

The proposed ordinance completes the balance of the amendments that the City Council initiated on June 17, 2024; however, some of the changes that were recommended in the June 17, 2024 staff report have been further refined based on staff research. In order to justify the changes proposed in this ordinance, staff researched the zoning codes of nearby jurisdictions to better understand how non-residential land uses are regulated in comparable cities and determine best practices to help ensure that the City’s land use regulations remain competitive in attracting and retaining businesses. Jurisdictions reviewed for comparison purposes included Anaheim, Brea, Buena Park, Costa Mesa, Fullerton, La Mirada, Orange, Placentia, Whittier, and Yorba Linda. A summary of this research is provided in Attachment 4. The proposed ordinance is intended to keep La Habra competitive with jurisdictions that offer more streamlined, business-friendly land use regulations, while retaining discretionary review for uses that may warrant additional oversight.

The proposed ordinance includes amendments to the following sections of Title 18 (Zoning) of the LHMC as summarized in Table 1 below. Additionally, the Commission may review a red-lined version of the proposed amendments included as Attachments 5 through 14.

TABLE 2

Ordinance Section/

LHMC Chapter and Section

Proposed Amendments

Ordinance Section 4

Chapter 18.04 (Definitions)

Section 18.04.030 (Terms Defined)

Redlines in Attachment 5

Provide definitions for all land uses identified in Table 18.06.040—Land Use Matrix to provide clear distinctions between use categories and to reduce ambiguity in the administration of Title 18 (Zoning).
Relocate definitions from Section 18.12.170 (Smoking Lounges) and chapter 18.62 (Wireless Communication Facilities) to Chapter 18.04 (Definitions); centralizing all land use definitions in one place for ease of reference and improved internal consistency.

Ordinance Section 5/Exhibit A

Chapter 18.06 (Zones Established)

Section 18.06.040 (Land Uses)

Table 18.06.040.A(Land Use Matrix)

Redlines in Attachment 6

Consolidate individual land use categories for batting cages, bowling alleys, indoor golf driving ranges, tennis courts (commercial), pool halls and billiard halls, and commercial schools (dance studios, martial arts, music and vocal instruction, etc.) within Table 18.06.040.A into "commercial recreation, fitness and instruction (small)" which would be subject to approval of an MCUP, and "commercial recreation, fitness and instruction (large)" or "commercial recreation, fitness and instruction (outdoors)" which would be subject to the approval of a CUP.
Consolidate individual land use categories for churches, or other places used for religious worship and lodges, clubs and fraternal organizations into one category "community and religious assembly" which would be subject to the approval of a CUP.
Consolidate individual land use categories for educational institutions including private schools, elementary, middle and high schools and universities, daycare, tutoring into the categories educational institutions (general), educational institutions (tutoring), and day care center. Educational institutions (general) would be subject to the approval of a CUP, educational institutions (tutoring) would be permitted by right, and day care center would be subject to the approval of an MCUP.
Consolidate land uses listed under Commercial – Medical land uses with Commercial - Services and Offices. This will result in a variety of office uses to be categorized as "Administrative, professional, and medical office," which would be permitted by right.
Expand the "Restaurants" land use type into a variety of restaurant types such as restaurants with drive-throughs; restaurants with on-sale beer and wine; restaurants with on-sale beer, wine and distilled spirits; restaurants with indoor entertainment; and, restaurants with outdoor entertainment. The proposed revisions will allow lower impact restaurant types to be permitted by right or subject to the approval of an MCUP.
Add personal services as a new land use. Past planning practice relied on staff’s interpretation that personal service uses are the same as general retail uses. The revision specifies personal services as its own land use category and new definitions for general retail and personal services are also proposed to be added.
Relocate all land uses listed on Table 18.06.040.A under the SP-1 Zone to Chapter 18.44, SP-1 La Habra Boulevard Specific Plan, Section 18.44.020.
Consolidate check cashing or payday advance uses into the category of financial institutions.
Consolidate dog kennels and veterinary services into the use category of animal care and services facility, which would be permitted subject to the approval of an MCUP.
Remove outdated land use types including fortune telling and radio and television transmitters.
Remove model home sales office. This use would be reviewed in conjunction with a design review entitlement.
Remove showrooms. This use will be included under general retail.
Revise table to specify remediation systems are permitted by right. This use will be regulated by newly proposed standards in Section 18.12.190 (Remediation Systems).
Add storage yards (primary) as use that requires a CUP.
Add storage yards (incidental) as a use that may be permitted by right.
Remove parks, playgrounds and community buildings from Table 18.06.040.A since if these are public uses they are not governed under Title 18 (Zoning) and if they are not public uses, they are accessory to another type of use.
Specify that outdoor donation collection bins are prohibited in all zones.
Add alcoholic beverage, manufacturing as permitted by right in the M-1 zone and alcoholic beverage, manufacturing with tasting room as requiring an MCUP.
Identify that massage establishments are subject to the requirements in Chapter 5.28 (Massage Establishments).
Identify that hazardous waste facility requirements can be found under Chapter 18.58 (Hazardous Waste Facility).
Identify that smoking lounge regulations can be found under Chapter 18.12.170 (Smoking Lounges).
Move the permitting requirements for wireless communication facilities (discretionary) and wireless communication facilities (ministerial) that are currently found in Chapter 18.62 (Wireless Communication Facilities) to Table 18.06.040A.

Ordinance Sections 6 and 7

Chapter 18.12 (Special Development Standards)

Section 18.12.140 (Outdoor Seating Area)

Redlines in Attachment 7

Update outdoor dining regulations for consistency with the City’s revised restaurant and alcohol-service land use categories. The proposed text is intended to clarify when outdoor dining may be reviewed in conjunction with an underlying restaurant entitlement, and when a separate discretionary entitlement is required based on the size or operational characteristics of the outdoor area.

Ordinance Section 8

Chapter 18.12 (Special Development Standards)

Section 18.12.170 (Smoking Lounges)

Redlines in Attachment 8

Move the definition for smoking lounges from Section 18.12.170 (Smoking Lounges) to Chapter 18.04 (Definitions).
Move the permitting requirements for smoking lounges that are currently found in Section 18.12.170 (Smoking Lounges) to Table 18.06.040.A.

Ordinance Section 9
Chapter 18.12 (Special Development Standards)

Section 18.12.190 (Remediation Systems)

Redlines in Attachment 9

Add new development and operational standards for remediation systems. The proposed new Section 18.12.190 (Remediation Systems) establishes objective development and operational standards for remediation systems, which are currently listed in the Land Use Matrix as conditionally permitted uses. Based on staff’s review of prior CUP approvals and the temporary nature of such systems, staff is recommending that remediation systems be allowed by right, provided they comply with the new standards. The new section also identifies when an MCUP would be required if deviations from the development and design standards are requested.

Ordinance Section 10
Chapter 18.14 (Off-Street Parking Requirements)

Section 18.14.060 (Number of Spaces Required)

Redlines in Attachment 10

Update the City’s off-street parking requirements to correspond to the revised land use categories and current business operations. In some instances, the revisions consolidate older categories; in other instances, the revisions retain separate parking rates for specific subtypes of uses where operational characteristics differ significantly. The parking amendments are intended to ensure that land uses newly permitted by right or by MCUP continue to provide adequate parking based on their actual intensity and mode of operation.

Ordinance Section 11

Chapter 18.23 (Sign Standards)

Section 18.23.030 (Sign Matrix)

Table 18.23.030.A (Sign Matrix)

Redlines in Attachment 11

Revise sign matrix by removing menu board signs as requiring a CUP because a CUP is already required for any restaurant drive-through, under which a future menu board sign can be reviewed at the same time.

Ordinance Section 12/Exhibit B

Chapter 18.44 (SP-1 La Habra Boulevard Specific Plan Zone)

Section 18.44.020 (Uses)

Redlines in Attachment 12

Move the permitting requirements for uses within the SP-1 zone from Table 18.06.040.A to Section 18.44.020 (Uses). There are no changes to the uses and permitting requirements; this amendment only changes the location of the information. Changes to the SP-1 are forthcoming with the update of the La Habra Boulevard Specific Plan, which is currently underway and has special noticing requirements for amendments.

Ordinance Section 13

Chapter 18.62.020 (Definitions)

Redlines in Attachment 13

Move the definitions for Wireless Communication Facilities to Chapter 18.04 (Definitions).

Overall, staff believes the proposed ordinance would make the Zoning Code easier to understand and implement, better reflect current land uses and broader market trends, reduce unnecessary permit burdens for lower-impact commercial and industrial uses, and continue the City’s ongoing effort to create a more business-friendly regulatory environment while retaining appropriate safeguards for uses that warrant discretionary review. While this Zone Change should make it easier, it should be noted that all new development, major remodeling and/or structural rehabilitation of more than twenty-five percent of the building area, and additions that result in additional floor area, in the City's commercial and multi-unit dwelling zones; OS (Open Space), M-1 (LIght Manufacturing) and SP-1 (La Habra Boulevard Specific Plan) Zones; and the MX (Mixed Use) Overlay Zone, will continue to be subject to processing of a Design Review, enabling the City's Planning Commission, in most cases, to approve the design, site planning and aesthetics of these types of projects. Therefore, staff recommends that the Planning Commission approve and adopt the attached resolution recommending that the City Council approve Zone Change 26-0002. If the Planning Commission adopts the attached resolution, the City Council is tentatively scheduled to consider the proposed ordinance at a duly noticed public hearing on June 1, 2026.

FISCAL IMPACT/SOURCE OF FUNDING:

Costs associated with City-initiated amendments to the La Habra Municipal Code are generally assumed as part of the Community and Economic Development Department’s annual budget.

NATIONAL POLLUTANT DISCHARGE ELIMINATION SYSTEM (NPDES):

The proposal only consists of amending the La Habra Municipal Code. As such, no disturbance of soil is proposed.Thus, the proposal is exempt from the City's National Pollutant Discharge Elimination System (NPDES) MunicipalPermit, the Local Implementation Plan (LIP), and the Model Water Quality Management Plan (WQMP), Section7.2.

GENERAL PLAN RELEVANCE/CITY COUNCIL GOALS & OBJECTIVES:

The proposed amendments support continued implementation of the General Plan by updating and clarifying zoning regulations for non-residential uses, improving the functionality of the Zoning Code, and reducing unnecessary barriers to appropriate business activity while retaining discretionary review for higher-impact uses.

The proposed amendments also support the following City Council Goals and Objectives:

Goal 5 – Development Activity and Business Assistance:

Objective B: Monitor commercial property listings that have sales tax generating potential for potential acquisition and/or marketing to attract/retain businesses, and work with property owners and the brokerage community to develop land to its highest and best use.

The proposed amendments update land use classifications and permit requirements to better accommodate modern business types and more flexible reuse of commercial and industrial properties.

Objective D: Continue to improve the City’s business retention and expansion program.

The proposed amendments reduce unnecessary permit burdens for certain lower-impact uses, clarify zoning requirements, and create a more predictable entitlement structure for existing and prospective businesses.

Objective E: Continue to evaluate and improve the City’s development review process and continue to foster a “business friendly” environment within all City departments.

The proposed amendments will make the development review process more efficient, transparent, and easier to administer.

Objective J: Review the Zoning Code on an on-going basis and process amendments that ensure compliance with recent State legislation, streamline project processing, remove unnecessary regulations, and/or make the Zoning Code easier to implement.

The proposed amendments will implement the City’s MCUP procedures, refine the Land Use Matrix, update definitions, and improve internal consistency within the Zoning Code