REPORT TO CITY COUNCIL
SUBJECT
Title
Action on Sustainable Communities Project Exemption and Architectural Approval for a 59-Unit Affordable Mixed-Use Project Located at 3941 Stevens Creek Boulevard
Report
COUNCIL PILLAR
Promote and Enhance Economic, Housing and Transportation Development
BACKGROUND
The applicant (CRP Affordable Housing and Community Development) is proposing to build a 100% affordable, 59-unit residential mixed-use building on a 0.58-acre project site located at the northeast corner of Stevens Creek Boulevard and Buckingham Drive (3941 Stevens Creek Boulevard). The Project Site is currently developed with a vacant single-story building located on the central-southern portion of the site that was formerly a car wash use. The proposed structure would replace the existing commercial building and associated parking area onsite.
Surrounding land uses comprise a five-story multi-family residential building to the north, a one-story, retail music shop building to the east, one- and two-story commercial/retail buildings to the west across Buckingham Boulevard, and one-story commercial car dealership and associated surface parking areas to the south along Stevens Creek Boulevard.
Project Description
The proposed mixed-use building will be six-stories (72 feet-six inches in height at top of parapet) and include a 2,630 square foot commercial leased area on the ground floor along with a lobby, utility and amenity space. The 59-unit 100% affordable development will have a density of 101.7 du/ac. The proposed building would be approximately 88,087 square feet resulting in an overall Floor Area Ratio (FAR) of 3.48, and a commercial FAR of 0.10.
The affordable units will be provided with 46 units at 60% AMI, six units at 50% AMI, and six units at 30% AMI. The project includes one market rate unit for a property manager. These units include 10 one-bedroom units (average size of 531 to 608 square feet), 20 two-bedroom units (average size of 800 to 843 square feet), 24 three-bedroom units (average square footage of 1,077 to 1,315 square feet), and five four-bedroom units (average size of 1,295 to 1,315 square feet).
The project would provide approximately 3,857 square feet of common/amenity space. Amenities include a 781 square-foot lobby area, indoor mailboxes, on-site management offices, and secured bike storage, on the ground floor. On upper floors it includes a community room, communal laundry facilities, a teen room, and multiple additional flex spaces throughout. The proposed community room would be located on the second floor and spills out onto a 4,494 square foot podium courtyard where play areas will be provided for residents.
The project include 32 vehicular parking spaces and approximately 28 bicycle spaces, located within a secured bicycle storage room within the building and eight spaces located on the exterior of the building.
Hearing Process
The applicant has applied to the State for tax-exempt bonds to help finance their project and the project must meet certain thresholds in the City’s entitlement process by early February in order to maintain their bond financing. The applicant filed a preliminary application with the City for the proposed project under Senate Bill 330 (SB 330) on July 8, 2021 and a formal application for Architectural Review was submitted on September 20, 2021.
The applicant is proposing to use the Sustainable Community Project Exemption to satisfy California Environmental Quality Act (CEQA) review requirements. The City Council is the appropriate body to make the determination that the project qualifies for the use of this Exemption. The project must proceed with an expedited schedule to meet funding requirements. As such, the Architectural Review application is being brought forward to City Council for consideration as a joint item with the Sustainable Community Project Exemption. The typical process would be for an architectural review application to be subsequently considered through the City’s Development Review Hearing.
DISCUSSION
The City’s review of the project is focused on General Plan and Zoning Consistency, as well as Architectural Review for conformance with any objective standards adopted by the City.
General Plan and Zoning Conformance
The General Plan land use designation for the project site is Community Mixed-Use (CMU), which is intended for a mix of residential and commercial uses along major streets, and the zoning designation is Thoroughfare Commercial (CT), which does not allow for any residential uses. Therefore, the applicant is utilizing the provisions of Assembly Bill 3194 (2018) (AB 3194), which amended the Housing Accountability Act, to supersede local land use regulations to allow development of a housing project without a rezoning, if the zoning district for the project site is inconsistent with the General Plan (Gov’t Code § 65589.5(j)(4)). To utilize AB 3194, there must be a zoning designation that the project falls within and that is consistent with the General Plan land use designation, except for residential density. In this case, the Very High Density Mixed-Use (VHDMU) zoning district can be utilized for the project as it is consistent with the Community Mixed-Use General Plan land use designation.
The allowable residential density range for CMU is ordinarily 20-36 du/ac. The project will be 100% affordable, allowing the developer to get a “super” density bonus under the Density Bonus Law (AB 1763). As per Santa Clara City Code Section 18.78.060, the Density Bonus Housing Agreement must be approved prior to the issuance of building permits for the parcels or units. As the applicant must obtain building permits by early February to maintain their bond financing, time is of the essence. For 100% affordable projects, the following bonus applies: “If the housing development is located within one-half mile of a major transit stop, the city . . . shall not impose any maximum controls on density.” A “major transit stop” includes the intersection of two bus lines, provided that each has a maximum of 15-minute headways during peak commute periods. Here, the project site qualifies for this unlimited density by being located within one-half mile of the intersection of Valley Transportation Authority (VTA) bus line 57 on Kiely Boulevard and VTA line 23 on Stevens Creek Boulevard, all of which have 15-minute headways during rush hour.
The VHDMU zoning district is intended to provide for transit- and pedestrian-oriented mixed use development comprised of very high density housing over fifty (50) dwelling units per acre and up to and including one hundred twenty (120) dwelling units per acre in conjunction with local and regional serving commercial uses that link with existing and planned transit facilities to support and maximize transit use. With the exception of the residential density, this zoning designation is consistent with the General Plan CMU designation, and thus could be used under AB 3194.
Architectural Review - Objective Standards
The project also utilizes Senate Bill 330 (SB 330), which limits the City’s the review of the project to objective, quantifiable, written development standards, conditions, and policies appropriate to meet regional housing need. For projects not subject to SB 330, the City’s architectural review ordinance directs the City to make findings based on whether the project would affect the desirability of investment in the neighborhood, whether the project is in keeping with the character of the area, and whether the project would adversely affect the health, comfort, and welfare of persons in the neighborhood. As all of these findings are subjective, they can no longer be a part of the City’s architectural determination for most residential projects, and so no architectural findings resolution has been prepared. Instead, the Council’s architectural review is limited to a determination of whether the project meets objective City Code requirements and objective architectural guidelines.
The City’s Project Clearance Committee reviewed this project on January 11, 2022 and found the project in compliance with objective city standards and general plan policies, subject to the attached Conditions of Approval. The City’s applicable objective standards include parking requirements, setbacks and height limitations.
The project includes 32 vehicular spaces where 84 are normally required under the VHDMU zoning district. However, State Density Bonus Law provides that for a 100% affordable development within a half-mile of a major transit stop, the City “shall not impose vehicular parking standards,” Gov’t Code § 65915(p)(3). As such, the City cannot require any parking, and the 32 spaces that the applicant is providing for the dwelling units are voluntary. The applicant is also requesting one concession as allowed under the Sate Density Bonus Law, to provide zero parking spaces for the 2,630 square foot ground floor commercial space.
The maximum height limit in the VHDMU zoning district is limited only by Federal Aviation Administration (FAA) restrictions. There is no maximum building coverage in this zone; however, all development is subject to providing adequate pervious area to meet stormwater requirements. The project conforms to these requirements. The proposed project meets the intent and the development standards for building height and setbacks for the VHDMU district and therefore may proceed consistent with AB 3194.
Community Meeting
The developer held a community meeting on November 18, 2021. A flyer was mailed to property owners within 1,000 feet of the project site and the City used social media to share the meeting participation information with the broader community. The meeting had approximately 15 attendees. Comments received were focused on affordability terms, expected tenants, funding source, use of the commercial component, and development timeline.
Conclusion
The project would be consistent with the City’s General Plan, as well as applicable Zoning Code requirements and objective design standards. Council approval would facilitate the development of affordable housing within Santa Clara consistent with the City’s land use regulations and State provisions.
ENVIRONMENTAL REVIEW
The applicant is requesting that the City Council consider and decide whether the proposed project qualifies for a Sustainable Communities Project Exemption (SCPE), pursuant to Public Resources Code (PRC) Section 21155, et seq. PRC Section 21155.1 provides that projects are statutorily exempt from California Environmental Quality Act (CEQA) if a hearing is held by the City Council and the City Council finds, based on the whole of the administrative record, that the project qualifies as a transit priority project, as defined by PRC Section 21155(b), and further meets the environmental criteria of PRC § 21155.1(a), land use criteria of PRC § 21155.1(b), and affordability or open space criteria of PRC § 21155.1(c). (See Attachment 2 for a detailed explanation of these requirements).
A “transit priority project” pursuant to PRC § 21155(b) is defined as a development project with at least 50 percent of the square footage devoted to residential uses, , providing a minimum net density of at least 20 units per acre, and located within one-half mile of a major transit stop. Here, the project meets these requirements because 92.6% of the building square footage is devoted to residential units, the density is 101.7 du/ac, and the project is approximately 135 feet from a major transit stop. The SCPE potentially applies to TPPs that are consistent with the area sustainable communities strategy, which for the bay area is Plan Bay Area. Specifically, the project must be consistent with (1) the general use designation, (2) the density, (3) the building intensity, and (4) applicable policies specified for the project area. PRC § 21155(a). As detailed in Attachment 2, the project meets all of these requirements. A copy of the SCPE and all associated attachment are also available on the City’s project webpage.
Of the myriad requirements for a project to qualify as a SCPE, one of the most stringent applies to energy efficiency. There is a requirement in the statute that the project’s buildings must be 15 percent more energy efficient than required by the California Energy Code (CEC), and the buildings and landscaping must be designed to achieve 25 percent less water usage than the average household use in the region. PRC § 21155.1(a)(8). As detailed in Attachment 2, the Applicant prepared an analysis demonstrating that the project will achieve 15.1% greater energy efficiency than CEC requirements, and the water use will be 38.6% below average household water use for Santa Clara. The City’s Building Division and Water & Sewer Utilities Department verified these calculations.
Planning staff reviewed the SCPE prepared for the proposed project and recommends that the City Council consider and determine that this project is exempt from CEQA pursuant to the Sustainable Communities Strategy, PRC § 21155 et seq.
FISCAL IMPACT
There is no fiscal impact to the City for processing the requested application other than administrative staff time and expense typically covered by processing fees paid by the applicant.
COORDINATION
This report was coordinated with the City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov>.
On January 14, 2022, a notice of public hearing on this item was posted in three conspicuous locations within 300 feet of the project site and mailed to property owners within 1,000 feet of the project site. The Planning Division has received no comments prior to this report.
ALTERNATIVES
1. Adopt a resolution approving the Sustainable Communities Project Exemption to exempt the project from CEQA review, in accordance with PRC Section 21155.1.
2. Approve the architectural review of the 59-unit 100% affordable mixed-use project at 3941 Stevens Creek Boulevard.
3. Authorize the City Manager to negotiate and execute the Density Bonus Housing Agreement in accordance with Santa Clara City Code Section 18.78.060.
RECOMMENDATION
Recommendation
1. Adopt a resolution approving the Sustainable Communities Project Exemption to exempt the project from CEQA review, in accordance with PRC Section 21155.1; and
2. Approve the architectural review of the 59-unit 100% affordable mixed-use project at 3941 Stevens Creek Boulevard.
3. Authorize the City Manager to negotiate and execute the Density Bonus Housing Agreement in accordance with Santa Clara City Code Section 18.78.060.
Staff
Reviewed by: Andrew Crabtree, Director of Community Development
Approved by: Deanna J. Santana, City Manager
ATTACHMENTS
1. The Meridian Entitlement Letter
2. Sustainable Communities Project Exemption
3. Resolution for Sustainable Communities Project Exemption
4. Conditions of Approval
5. Development Plans