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Resolution No. 2022-006 Recommending that the City Council Adopt an Ordinance Amending Sections 5.08.136 and 5.12.132 of the San Leandro Zoning Code to Extend Entitlements for Qualified Housing Projects Two Years
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WHEREAS, California is suffering from a significant and prolonged housing crisis; and
WHEREAS, the housing crisis has caused significant increases in rent and home prices, making it difficult for households to find affordable housing in San Leandro and throughout the region; and
WHEREAS, San Leandro’s Regional Housing Needs Assessment (“RHNA”) allocation for the 5th Housing Element Cycle (2015-2023) was 2287 units across all income levels, but less than 500 units have been produced during that time period; and
WHEREAS, San Leandro’s RHNA allocation for the 6th Housing Element Cycle (2023-2031) is 3855 units across all income levels; and
WHEREAS, the City’s General Plan and Housing Element include various goals and policies focused on increasing the supply of residential units within San Leandro, including both market-rate and affordable units; and
WHEREAS, in recent years, the City has approved entitlements for multi-family residential developments consisting of over 2,000 units;
WHEREAS, these approved projects will provide critically needed new housing units; and
WHEREAS, an outbreak of respiratory disease caused by a novel coronavirus named “SARS-CoV-2,” and the disease it causes named “coronavirus disease 2019,” abbreviated COVID-19 (“COVID-19 Pandemic”) occurred in March 2020; and
WHEREAS, the COVID-19 Pandemic has had a significant impact across all sectors of the national, state, and local economies; and
WHEREAS, in the early months of the COVID-19 Pandemic, stringent public health orders made it impossible to pursue construction projects; and
WHEREAS, even after health orders have been lifted, the COVID-19 Pandemic continues to cause significant negative impacts to the global supply chain; and
WHEREAS, the COVID-19 Pandemic’s impact on the economy and rising interest rates make it difficult for developers to obtain necessary financing to commence construction; and
WHEREAS, the San Leandro Zoning Code requires applicants to obtain permits to undertake new residential development projects, such as use permits, variances, and/or site development review; and
WHEREAS, the San Leandro Zoning Code establishes various deadlines for applicants to perfect approved entitlements or the entitlements will expire; and
WHEREAS, the disruptions and uncertainty caused by the COVID-19 Pandemic are significant and ongoing and have made it difficult for some applicants to exercise their entitlements; and
WHEREAS, allowing entitlements to expire will result in those residential development projects ceasing and necessary residential units not being constructed; and
WHEREAS, the City desires to automatically extend all entitlements for residential projects issued after January 1, 2019 for two (2) years in order to allow such projects to proceed and prevent the expiration of entitlements for critically needed housing units; and
WHEREAS, San Leandro Zoning Code section 5.08.136 governs the expiration and extension of use permits and variances; and
WHEREAS, San Leandro Zoning Code section 5.12.132 governs the expiration and extension of site plan review; and
WHEREAS, a Staff Report dated July 7, 2022, incorporated herein by reference, described and analyzed the proposed amendments for the Planning Commission; and
WHEREAS, the City of San Leandro Planning Commission held a duly noticed Public Hearing on July 7, 2022, for consideration of the proposed amendments, at which time all interested parties had the opportunity to be heard, and did consider all information pertaining to the proposed amendments, including the Staff Report, the findings, and all public comments and testimony received prior to and during the hearing.
NOW, THEREFORE, THE PLANNING COMMISSION FOR THE CITY OF SAN LEANDRO RESOLVES THAT: The above recitals are true and correct and made a part of this Resolution.
BE IT FURTHER RESOLVED THAT: The Planning Commission hereby recommends that the City Council amend Section 5.08.136, “Lapse of Approval; Transferability; Discontinuance; Revocation,” of the San Leandro Zoning Code as follows (with additions underlined and deletions in strikethrough):
“5.08.136 Lapse of Approval; Transferability; Discontinuance; Revocation
A. Lapse of Approval. A use permit or variance shall lapse after two years, or at an alternative time specified as a condition of approval, after its date of approval unless:
1. A building permit has been issued, coupled with diligent progress evidencing a good faith intent to commence the intended use; or
2. A certificate of occupancy has been issued; or
3. The use is established; or
4. The approval is granted a one-year extension by the Zoning Enforcement Official upon receipt of a written application with the required fee within the time period specified by the review authority, or two years of the date of the approval.
A use permit also shall lapse upon discontinuance of work on a project or expiration of a building permit.
B. Transferability. The validity of a use permit or variance shall not be affected by changes in ownership or proprietorship provided that the new owner or proprietor applies to the City for a business license and zoning approval.
C. Discontinuance. A use permit or variance shall lapse if the exercise of rights granted by it is discontinued for 180 consecutive days.
D. Revocation. A use permit or variance that is exercised in violation of a condition of approval or a provision of this Code may be revoked, as provided in Section 5.24.108 Revocation of Discretionary Permits.
E. Renewal. Upon written request or a use permit, variance may be renewed by the Zoning Enforcement Official for one year, with one additional one-year renewal allowed for a total period not to exceed two years without notice or public hearing if the findings required by Section 5.08.124 Required Findings remain valid.
F. Automatic Extension. Any use permit or variance for a single-family residential, multi-family residential, or mixed-use residential project granted between January 1, 2019 and June 30, 2022, including any such use permit or variance that has lapsed, shall be automatically extended by two (2) years. The extension provided by this subsection (F) shall be in addition to any other extension granted pursuant to any section of the San Leandro Zoning Code or applicable California law, and shall not limit the ability of an applicant to apply for and receive such additional extensions under the Zoning Code.”
BE IT FURTHER RESOLVED THAT: The Planning Commission hereby recommends that the City Council amend Section 5.12.132, “Effective Date; Lapse and Renewal; Alterations,” of the San Leandro Zoning Code as follows (with additions underlined and deletions in strikethrough):
“5.12.132 Effective Date; Lapse and Renewal; Alterations
A. Effective Date. Site Plan approval shall become effective on the 15th day after the date the decision maker or the decision making body approves the site plan, unless appealed, as provided in Chapter 5.20 Appeals.
B. Lapse of Approvals and Renewals. Site Plan approval shall lapse two years after its date of approval, or at an alternate time specified as a condition of approval, unless:
1. A grading permit or building permit has been issued, coupled with diligent progress evidencing good faith intention to commence the intended use; or
2. An occupancy permit has been issued; or
3. The approval is granted a one-year extension by the Zoning Enforcement Official upon receipt of a written application with the required fee within the time period specified by the review authority, or two years of the date of the approval.
C. Changed Plans. The Zoning Enforcement Official may approve changes to approved plans or in conditions of approval without a public hearing upon determining that the changes in conditions are minor and consistent with the intent of the original approval. Revisions involving substantial changes in project design or conditions of approval shall be treated as new applications to be reviewed as a new project by the decision making body as required by Section 5.12.112 Review and Approval Authority of this chapter.
D. Automatic Extension. Any site plan review for a single-family residential, multi-family residential, or mixed-use residential project granted between January 1, 2019 and June 30, 2022, including any such site plan review that has lapsed, shall be automatically extended by two (2) years. The extension provided by this Subsection (D) shall be in addition to any other extension granted pursuant to any section of the San Leandro Zoning Code or applicable California law and shall not limit the ability of an applicant to apply for and receive such additional extensions under the Zoning Code.”
BE IT FURTHER RESOLVED THAT: The recommendation of the Planning Commission is based on a finding that the proposed amendment of the San Leandro Zoning Code will not be detrimental to the public interest, health, safety, or welfare of the City, and is consistent with the General Plan and all applicable specific plans in that the amendment furthers the following General Plan goals and policies:
a. GOAL LU-3: Provide housing opportunities and improve economic access to housing for all segments of the community.
b. Policy LU-3.4: Promotion of Infill. Encourage infill development on vacant or underused sites within residential and commercial areas.
c. Policy LU-3.10: Market-Rate Housing. Encourage the provision of a significant amount of market-rate ownership and rental housing as part of an effort to maintain and diversify the City’s economic base.
d. GOAL LU-6: Foster the development of Downtown San Leandro as a vibrant pedestrian-oriented destination that is the civic and social heart of the City.
e Policy LU-6.6: Downtown Housing Diversity. Encourage a mix of market-rate and affordable housing in the Downtown area, including ownership and rental housing at a variety of price points. Recognize the opportunity to make future Downtown housing more affordable by reducing accompanying transportation costs and making it more feasible to use transit, bicycles, bicycle and car-sharing, and other innovative modes of transportation as these become viable.
BE IT FURTHER RESOLVED THAT: The recommendation of the Planning Commission is based on a finding that the proposed amendments are exempt from the California Environmental Quality Act (“CEQA”) based on the rule set forth in CEQA Guidelines section 15061(b)(3) that CEQA applies only to projects which have the potential for causing a significant effect on the environment. As an extension of zoning permits for previously approved projects, each of which has already individually been subject to any applicable environmental review, it can be seen with certainty that there is no possibility that the Ordinance will have a significant effect on the environment.