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CC SR 20260303 02 - Urgency Ordinance MUOD and ROD Amendments CITY COUNCIL MEETING DATE: 03/03/2026 AGENDA REPORT AGENDA HEADING: Regular Business AGENDA TITLE: Consider amending Rancho Palos Verdes Municipal Code (RPVMC) Chapter 17.47 Mixed Use Overlay District (MUOD) and Chapter 17.48 Residential Overlay District (ROD) RECOMMENDED COUNCIL ACTION: (1) Adopt Urgency Ordinance No. U, an urgency ordinance of the City Council of the City of Rancho Palos Verdes, California, amending Chapter 17.47 (Mixed Use Overlay District (MUOD)) and Chapter 17.48 (Residential Overlay District (ROD)) of Title 17 (Zoning) of the Rancho Palos Verdes Munic ipal Code to continue to effectuate the 2021-2029 Housing Element thereby requiring that new development and additions must allow 100 percent residential use, residential use occupy at least 50 percent of the total floor area of a mixed -use project, and the overlay is applicable to all new development projects in these overlay districts; and (2) Initiate regular Code Amendment proceedings to the Zoning Code (Title 17 of RPVMC) thereby having the Planning Commission, in an advisory role, make recommendations to the City Council on proposed text amendments to Chapter 17.47 Mixed Use Overlay District (MUOD) and Chapter 17.48 Residential Overlay District (ROD) to require that any new development or additions in these districts must allow 100 percent residential use and require that residential use occupy at least 50 percent of the total floor area of a mixed -use project, and will also require that the overlay is applicable to all new development projects in these overlay districts. FISCAL IMPACT: There is no fiscal impact, aside from staff time which is borne by the Fiscal Year 2025-26 Budget for personnel costs, for processing the recommended code amendments to the Zoning Ordinance (Chapter 17) of the RPVMC. Amount Budgeted: N/A Additional Appropriation: N/A Account Number(s): N/A ORIGINATED BY: Brandy Forbes, AICP, Director of Community Development REVIEWED BY: Catherine Jun, Deputy City Manager CJ APPROVED BY: Ara Mihranian, AICP, City Manager 1 ATTACHED SUPPORTING DOCUMENTS: A. Proposed Urgency Ordinance No. U, with Proposed Amendments as Exhibit A (page A-1) B. California Department of Housing and Community Development (HCD) Letter to City of RPV Confirming Compliance June 12, 2024 (page B-1) C. Second Appellate District opinion in New Commune DTLA LLC v. City of Redondo Beach, October 10, 2025 (page C-1) BACKGROUND: On April 16, 2024, the City of Rancho Palos Verdes (“City”) adopted its 6th Cycle Housing Element and implementing zoning ordinances, with subsequent amendments to the zoning ordinances adopted on June 4, 2024, which were confirmed by HCD’s letter dated June 12, 2024 (Attachment B) to be in compliance with State Housing Element Law. The implementing zoning ordinances included mixed -use overlay and residential overlay districts. On October 10, 2025, the Second Appellate District of the California Court of Appeal issued its opinion in New Commune DTLA LLC v. City of Redondo Beach related to the use of mixed-use overlay zoning to meet the Government Code Section 65583.2(h). Specifically, the ruling references that at least 50 percent of the lower income housing in the Housing Element is required to be “accommodated on sites designated for residential use and for which nonresidential uses or mixed uses are not permitted.” (§ 65583.2(h )(2).) There is an exception to this rule for certain mixed-use sites: subdivision (h)(2) allows a local government to “accommodate all of the lower income housing need on sites designated for mixed use if those sites allow 100 percent residential use and require that residential use occupy 50 percent of the total floor area of a mixed-use project.” To address rulings of the appellate court decision as the same impacts the City’s Zoning Ordinance, Staff recommend that the City Council amend the implementing zoning of RPVMC Chapter 17.47 Mixed Use Overlay District (MUOD) and Chapter 17.48 Residential Overlay District (ROD) to address the specific issues addressed in the appellate court ruling and to bring the same into compliance with the court’s decision . DISCUSSION: The City, in good faith, relied upon the determination by HCD, dated June 12, 2024, finding the City’s implementing ordinance fully complied with State Housing Element Law. The City’s implementing zoning ordinances included mixed-use overlay districts. On October 10, 2025, the California Court of Appeal, Second Appellate District, issued its opinion in New Commune DTLA LLC v. City of Redondo Beach, reversing the trial court’s denial of a petition for writ of mandate under Code of Civil Procedure section 1085 2 filed by New Commune DTLA LLC (“New Commune”). New Commune sought to invalidate the City of Redondo Beach’s 2021 –2029 Housing Element, which the City adopted in October 2021 to comply with the California housing element Law (Gov. Code, §§ 65580–65589.11). New Commune asserted that the City’s housing element was deficient because its reliance on a residential overlay allowing multifamily housing on parcels zoned for commercial and industrial uses violated Government Code §65583.2, subdivision (h)(2). Specifically, New Commune argued that since the underlying zoning still permitted exclusively commercial or industrial projects with no residential component, the overlay failed to meet the statute’s minimum density and residential-use requirements. The court agreed with petitioners New Commune and held that “[a]n overlay cannot be used to satisfy the minimum density and residential use requirements set out in section 65583.2, subdivision (h)(2) . . . where the base zoning expressly permits developmen t that does not include housing.” The appellate court rejected the City of Redondo Beach’s argument that HCD’s prior approval of the City’s housing element insulated the City from judicial review. The court reaffirmed that HCD’s certification does not override clear statutory violations or confer immunity from compliance with Government Code § 65583.2. Local governments therefore remain independently responsible for ensuring that their housing elements and implementing zoning ordinances conform to state law, regardless of HCD’s prior approval. Although the City of Redondo Beach petitioned the California State Supreme Court to consider this case, the petition was denied on January 29, 2026. Therefore, the appellate court’s ruling stands, which remands the case to the lower court. With the New Commune DTLA LLC v. City of Redondo Beach ruling, City Staff evaluated the Rancho Palos Verdes’ implementing ordinances and drafted clarifying language to address the appellate court’s specific determination regarding mixed use overlay districts. As approved by HCD, RPVMC Chapter 17.47 Mixed Use Overlay District (MUOD) currently only requires a minimum of 25 percent of the total gross floor area in a MUOD project to be residential, and RPVMC Chapter 17.48 Residential Overlay District (ROD) does not have a set minimum requirement. Although the Purpose section of each Chapter states that the projects could be residential-only, there is not a specific statement that the districts allow 100 percent residential use. The proposed text amendments would require that any new development or additions in these districts must allow 100 percent residential use and require that residential use occupy at least 50 percent of the total floor area of a mixed -use project. The regulations will also require that the overlay is applicable to all new development projects in these overlay districts. The substantive amendments to Chapter 17.47 MUOD are as follows (added text are underlined, deleted text are strikethrough). • 17.47.020. Applicability Sections A, B, and C: 3 A. Applicable parcels. The MUOD is an overlay district applicable to parcels with an underlying nonresidential base district designation. The MUOD shall only apply to the parcels identified in the mixed-use overlay district map on file with the community development department. Any new development or projects that are an addition by increasing the square footage to an existing development on property within this overlay district shall comply with the provisions of this chapter. B. Relationship to the underlaying base district. The provisions of the underlying base district shall continue to apply to existing uses and development on a property unless specifically superseded by a MUOD project when a property owner chooses to exercise; however any new development or projects that are an addition by increasing the square footage to an existing development on a property within this overlay district shall comply with the provisions of this chapter. C. Relationship to overlay control districts. If applicable, the objective provisions of any overlay control district shall continue to apply to a property unless specifically superseded by a MUOD project when a property owner chooses to exercise initiates provisions of this chapter. In the event that the provisions of any overlay control district are in conflict with provisions of this chapter, this chapter shall govern. • 17.47.040. Development standards, Section (A)(1), Subsections b and c: b. For all new development or projects that are an addition by increasing the square footage to an existing development in a MUOD overlay projects, a minimum of 25 50 percent of the total gross floor area for the proposed new mixed-use project or addition shall be dedicated to residential uses. c. A project in the MUOD may have up to 100 percent residential use of the total floor area of a project. The substantive amendments to Chapter 17.48 ROD are as follows (added text are underlined, deleted text are strikethrough). • 17.48.020. Applicability Sections A, B, and C: A. Applicable parcels. The ROD is an overlay district applicable to parcels with an institutional underlying base district designation. The ROD shall only apply to the parcels identified in the residential overlay district map on file with the community development department. Any new development or projects that are an addition by increasing the square 4 footage to an existing development on property within this overlay district shall comply with the provisions of this chapter. B. Relationship to the underlaying base district. The provisions of the underlying base district shall continue to apply to existing uses and development on a property unless specifically superseded by a ROD project when a property owner chooses to exercise; however any new development or projects that are an addition by increasing the square footage to an existing development on a property within this overlay district shall comply with the provisions of this chapter. C. Relationship to overlay control districts. If applicable, the objective provisions of any overlay control districts shall continue to apply to a property unless specifically superseded by a ROD project when a property owner chooses to exercise initiates provisions of this chapter. In the event that the provisions of any overlay control district are in conflict with provisions of this chapter, this chapter shall govern. • 17.48.040. Development standards, Section (A)(1), Subsections c and d: c. For all new development or projects that are an addition by increasing the square footage to an existing development in a ROD overlay, a minimum of 50 percent of the total gross floor area for the proposed new mixed-use project or addition shall be dedicated to residential uses. d. A project in the ROD may have up to 100 percent residential use of the total floor area of a project. There are additional amendments in the urgency ordinance that are cleanup wordsmithing items that are not substantive. Those are provided under Exhibit A to the urgency ordinance (Attachment A). In order to comply with the holding in the New Commune DTLA LLC v. City of Redondo Beach ruling, Staff recommend adoption of an urgency ordinance (Attachment A), which would become effective immediately (requiring a 4/5ths vote), to be followed by a non - urgency ordinance. The process for adoption of the non-urgency ordinance includes a public hearing of the Planning Commission in an advisory capacity to review for consistency with the General Plan and provide recommendations to the City Council. The City Council will then conduct a public hearing to consider introducing the ordinance, as recommended by the Planning Commission, and if acceptable a subsequent second reading and adoption by City Council. The non-urgency ordinance becomes effective 30 days following adoption. It is anticipated that the proposed ordinance under the regular process will be returned to the City Council in April or May of this year. 5 CONCLUSION: Staff recommend that the City Council adopt the attached Urgency Ordinance (Attachment A) and initiate regular ordinance amendments to RPVMC Chapter 17.47 Mixed Use Overlay District (MUOD) and RPVMC Chapter 17.48 Residential Overlay District (ROD) to address the specific issues addressed in the appellate court ruling. There are additional amendments that are cleanup items that are not substantive , such as formatting, typographical, and clarifications. ALTERNATIVES: In addition to Staff’s recommendation, the following alternative actions are available for the City Council’s consideration: 1. Take no action and proceed to receive and file this report. The current MUOD and ROD regulations would remain in effect. 2. Revise the proposed amendments and adopt those revisions and initiate code amendments by regular ordinance accordingly. 3. Take no action on the urgency ordinance and initiate code amendments by regular ordinance only. This alternative would delay the implementation until after the process of the Planning Commission public hearing, City Council public hearing and introduction, City Council adoption, and a 30 day period following adoption. 4. Continue the item to a date certain to provide more information as requested by the City Council. 5. Take other action, as deemed appropriate. 6 CC Urgency Ordinance 2026 - 03 03 MUOD and ROD Amendments(2097366.1).odt ORDINANCE NO. ___U AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES, CALIFORNIA, AMENDING CHAPTER 17.47 (MIXED USE OVERLAY DISTRICT (MUOD)) AND CHAPTER 17.48 (RESIDENTIAL OVERLAY DISTRICT (ROD)) OF TITLE 17 (ZONING) OF THE RANCHO PALOS VERDES MUNICIPAL CODE TO CONTINUE TO EFFECTUATE THE 2021-2029 HOUSING ELEMENT THEREBY REQUIRING THAT NEW DEVELOPMENT AND ADDITIONS MUST ALLOW 100 PERCENT RESIDENTIAL USE, RESIDENTIAL USE OCCUPY AT LEAST 50 PERCENT OF THE TOTAL FLOOR AREA OF A MIXED-USE PROJECT, AND THE OVERLAY IS APPLICABLE TO ALL NEW DEVELOPMENT PROJECTS IN THESE OVERLAY DISTRICTS WHEREAS, the City of Rancho Palos Verdes was required by State Housing law to update the Housing Element of its General Plan for the 2021 -2029 planning period (6th Cycle) to include policies, strategies, and actions to facilitate the construction of new housing and preservation of existing housing to meet the needs of the City’s population during the 6th Cycle period, as well as to accommodate the City’s Regional Housing Needs Assessment (RHNA) allocation for new housing units in various income categories throughout the City; and WHEREAS, to effectuate the Housing Element by implementing zoning revisions that will accommodate the capacity for the housing as proposed in the Housing Element Update to meet the City’s RHNA obligation, City staff prepared amendments to the General Plan Land Use Element, Local Coastal Program (Coastal Specific Plan), Zoning Code, Zoning Map, and Development Standards for Accessory Dwelling Units (ADUs) and Junior Accessory Dwelling Units (JADUs); and WHEREAS, on April 16, 2024, the City Council adopted Resolution No. 2024 -16 that adopted the City’s Housing Element for the 2021-2029 housing cycle and amended the City’s General Plan and Local Coastal Plan to ensure consistency with the Housing Element and adopted Urgency Ordinance No. 678U, which amended the City’s Zoning Code to, among other items, add Chapter 17.47 “Mixed Use Overlay District” (MUOD) and add Chapter 17.48 “Residential Overlay District” (ROD) to accommodate the housing capacity as proposed in the Housing Element Update to meet the City’s RHNA obligation; and WHEREAS, on June 18, 2024 the City Council adopted Ordinance No. 681, which among other items, adopted the MUOD and ROD again utilizing the regular process for amending the City’s zoning code; and A-1 CC Urgency Ordinance 2026 - 03 03 MUOD and ROD Amendments(2097366.1).odt WHEREAS, on October 10, 2025, the California Court of Appeal, Second Appellate District, issued its opinion in New Commune DTLA LLC v. City of Redondo Beach (2025) 115 Cal.App.5th 111 (“New Commune Decision”) in which it held that “[a]n overlay cannot be used to satisfy the minimum density and residential use requirements set out in Government Code section 65583.2, subdivision (h)(2) . . . where the base zoning expressly permits development that does not include housing” and a mixed-use overlay zone cannot qualify for the mixed-use exception set forth in Government Code, section 65583.2(h)(2) for providing lower income housing needs if the mixed -use overlay zone does not allow 100 percent residential use and require that residential use occupy 50 percent of the total floor area of a mixed-use project; and WHEREAS, on January 28, 2026 the California Supreme Court denied Respondent City of Redondo Beach’s Petition for Review to the Supreme Court and request for depublication of the decision; and, WHEREAS, the City Council seeks to ensure that MUOD and ROD effectuate the City’s 6th Cycle 2021-2029 Housing Element immediately, in light of the New Commune Decision by amending the MUOD and ROD to ensure that the MUOD and ROD comply with Government Code section 65583.2(h) and that the City’s 2021-2029 Housing Element continues to substantially comply with the State’s laws governing housing elements; and WHEREAS, pursuant to Government Code § 36937, subdivision (b), any ordinance for the immediate preservation of the public peace, health, or safety, containing a declaration of the facts constituting the urgency, that is passed by a four-fifths (4/5) vote of the City Council, shall take effect immediately upon its adoption; and WHEREAS, the City Council seeks and intends to protect the health, safety, and welfare of the residents of the City of Rancho Palos Verdes by adopting the proposed amendments to the MUOD and ROD to continue to effectuate the City’s 2021 -2029 Housing Element, as further described herein. NOW THEREFORE, the City Council of the City of Rancho Palos Verdes does hereby ordain as follows: Section 1. Recitals. The above recitals are incorporated herein by this reference. Section 2. Urgency Findings. A. Government Code § 65580 provides, “[t]he availability of housing is of vital statewide importance, and the early attainment of decent housing and a suitable living environment for every Californian, including farmworkers, is a priority of the highest order.” California is experiencing a housing supply crisis, with housing demand far outstripping supply. In 2018, California ranked 49th out of the 50 states in housing per capita. This lack of housing supply in California has led to dramatically increasing housing costs across the State. A-2 CC Urgency Ordinance 2026 - 03 03 MUOD and ROD Amendments(2097366.1).odt B. Home prices in the City of Rancho Palos Verde are significantly higher than those in most surrounding communities, with the average home value as of February 2024 for the single family homes listed was $1,909,216, according to Zillow Research Data. As of April 9, 2024, only 49 properties were listed for rent in the City on Zillow, with 21 of those being apartments and townhomes ranging in rent from $1,750/month to $5,750/month. Single-family homes (28 properties) were being offered for rent from between $4,350/month and $18,000/month. In addition, land, environmental, and infrastructure constraints combine to keep land prices high, and housing growth has not occurred aside from the construction of accessory dwelling units on single-family parcels. C. Providing for a diverse range of housing types is an important consideration in a community. A diverse range of housing types helps ensure that all households in a community, regardless of income level, size, age, and family type, have the ability to find adequate housing that meets their needs. D. According to the California Department of Finance E -5 Report, 2021, the City’s housing unit vacancy rate in 2020 was 4.8%, where the vacancy rate in Los Angeles County was 6.4% and in the Southern California Association of Governments (SCAG) Region it was 7.6%, indicate housing choice is very limited in Rancho Palos Verdes. E. The City has some of the region’s highest single -family housing prices. According to SCAG data, between 2000 and 2018, median home sales prices in Rancho Palos Verdes increased 127% while prices in the SCAG region increased 151%, but the City’s median home sales price was still much higher than for the region overall in 2018, at $1,250,000, versus only $560,977 for the SCAG region. Prices in Rancho Palos Verdes have ranged from a low of 176.7% of the SCAG region median in 2007 and a high of 285.2% in 2009. F. According to the ACS, the median monthly contract rent for the 2014 through 2018 period3 was $1,288 for the region, and nearly twice that in Rancho Palos Verdes at $2,505. Only 49 properties, 28 of which are homes) are available for rent as of April 2024 according to Zillow. G. Extremely low, very low, low, and moderate income households cannot afford market-rate rental or ownership housing in Rancho Palos Verdes without assuming a significant cost burden. H. The increases in rents caused by the limited supply of rental housing force families to pay a disproportionate amount of household income on rent, creating strain on household finances. If households are forced to move out of the area because of increased rents, this can lead to loss of community, stress and anxiety for those forced to relocate, increased commute times and traffic impacts if displaced workers cannot find affordable housing within the City, and interruption of the education of children in the home. A-3 CC Urgency Ordinance 2026 - 03 03 MUOD and ROD Amendments(2097366.1).odt I. A lack of affordable rental housing supply and increasing rents additionally increase the risk that more households will become homeless and prevent homeless individuals and families from escaping homelessness. J. When people have access to safe and affordable housing, they have more money for food and health care, are less likely to become homeless and in need of government subsidized services, their children do better in school, and businesses have an easier time recruiting and retaining employees. K. Government Code § 65589.5 provides that the Legislature finds and declares all of the following: (1) The lack of housing, including emergency shelters, is a critical problem that threatens the economic, environmental, and social quality of life in California. (2) California housing has become the most expensive in the nation. The excessive cost of the state’s housing supply is partially caused by activities and policies of many local governments that limit the approval of housing, increase the cost of land for housing, and require that high fees and exactions be paid by producers of housing. (3) Among the consequences of those actions are discrimination against low income and minority households, lack of housing to support employment growth, imbalance in jobs and housing, reduced mobility, urban sprawl, excessive commuting, and air quality deterioration. (4) Many local governments do not give adequate attention to the economic, environmental, and social costs of decisions that result in disapproval of housing development projects, reduction in density of housing projects, and excessive standards for housing development projects. L. In order to help facilitate the development of sufficient housing to alleviate the regional and statewide housing crisis, the City is required to provide sufficient land in its General Plan and Zoning Code to provide the City’s fair share of housing to meet the needs of the Southern California region. The MUOD and ROD are critical mechanisms for ensuring the City provides sufficient land to accommodate its RHNA. M. In order for the Housing Element to be in compliance with the State Housing Element Law the City must ensure that the MUOD and ROD comply with State Housing Element Law as interpreted by the court in the New Commune Decision otherwise the MUOD and ROD may not be used to authorize new essential housing within the boundaries of the MUOD and ROD. N. Adopting the urgency ordinance allows the amendments to the MUOD and ROD, to be effective immediately, thereby ensuring that these overlay zones continue to eliminate constraints to the essential housing identified in the Housing Element. A-4 CC Urgency Ordinance 2026 - 03 03 MUOD and ROD Amendments(2097366.1).odt Section 3. The City Council finds that the Revised Final 2021 -2029 Housing Element adopted on April 16, 2024, in conjunction with the revisions to the Zoning Code adopted that day, was substantially compliant with the State Housing Element Law as of the date of its adoption, and that the proposed amendments to the MUOD and ROD to address the New Commune Decision ensures that the 2021-2029 Housing Element continues to be substantially compliant with State Housing Element Law. Section 4. CEQA Compliance. Based on its independent judgment, after consideration of the whole of the administrative record, the City Council determines the amendments to the MUOD and ROD were adequately assessed in the Negative Declaration adopted on August 11, 2022; and pursuant to CEQA Guidelines 15162 and 15164, and Addendum No. 1 dated March 2024, the City Council finds no major revisions are required to the Negative Declaration and no subsequent EIR or negative declaration is required for approval of the project. Section 5. Amendment to Chapter 17.47 “Mixed Use Overlay District” (MUOD) and Chapter 17.48 “Residential Overlay District” (ROD) of the Rancho Palos Verdes Municipal Code are hereby amended as set forth in Exhibit A, with deletions depicted with “strike - through” text and additions depicted with “underlined” text. Amendments require that any new development or additions in these districts must allow 100 percent residential use, require that residential use occupy at least 50 percent of the total floor area of a mixed- use project, and require that the overlay is applicable to all new development projects in these overlay districts. Section 6. Severability. If any provision(s) of this Ordinance or the application thereof to any person or circumstances is held invalid or unconstitutional by any court of competent jurisdiction, such invalidity or unconstitutionality shall not affect a ny other provision or application, and to this end the provisions of this ordinance are declared to be severable. The City Council hereby declares that they would have adopted this ordinance and each section, subsection, sentence, clause, phrase, part or p ortion thereof, irrespective of the fact that any one or more sections, subsections, clauses, phrases, parts or portions thereof be declared invalid or unconstitutional. Section 7. Posting. The City Clerk shall certify the passage and adoption of this Ordinance by the City Council and shall cause this ordinance to be published or posted in accordance with Government Code section 36933 as required by law. Section 8. Effective Date. Pursuant to Government Code section 36937, this Urgency Ordinance shall take effective immediately upon approval of the same by a four fifths (4/5) affirmative vote of the City Council. A-5 CC Urgency Ordinance 2026 - 03 03 MUOD and ROD Amendments(2097366.1).odt PASSED, APPROVED and ADOPTED by a 4/5th vote of the entire City Council this __ day of March 2026. ________________________________________ Paul Seo, Mayor Attest: Teresa Takaoka, City Clerk STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES )ss CITY OF RANCHO PALOS VERDES ) I, Teresa Takaoka, City Clerk of the City of Rancho Palos Verdes, do hereby certify that the above Urgency Ordinance No. ___U, was duly adopted by the City Council of said City at a regular meeting thereof held on March __, 2026. AYES: NOES: ABSENT: ABSTAIN: Teresa Takaoka, City Clerk A-6 Title 17 - ZONING ARTICLE V. - SPECIAL DISTRICTS CHAPTER 17.47. MIXED-USE OVERLAY DISTRICT 01203.0005 2079817.1 Rancho Palos Verdes, California, Code of Ordinances Created: 2025-10-14 09:39:29 [EST] (Supp. No. 3) Page 1 of 27 CHAPTER 17.47. MIXED-USE OVERLAY DISTRICT 17.47.010. Purpose The mixed-use overlay district (MUOD) implements various programs in the city's housing element by facilitating the development of a MUOD project of residential-only or mixed-use development with residential and commercial uses on select parcels that encourage: A. A compact and infill development pattern that promotes efficient use of land and infrastructure, minimizes automobile dependency, and promotes vibrant and active lifestyles; B. A compatible mix of uses including residential, commercial, and office land uses in a horizontal or vertical configuration that co -locates residents with pedestrian-oriented amenities; C. A diversity of multi-family housing types in a residential-only or mixed-use configuration to increase housing choice and affordability; and D. Revitalization of the city's commercial corridors as places to live, work, and play, thereby supporting the city's economic development initiatives. (Ord. No. 678U, § 4(Att. B), 4-16-2024; Ord. No. 680U, § 5(Att. B), 6-4-2024; Ord. No. 681, § 4(Att. B), 6-18-2024) 17.47.020. Applicability. A. Applicable parcels. The MUOD is an overlay district applicable to parcels with an underlying nonresidential base district designation. The MUOD shall only apply to the parcels identified in the mixed-use overlay district map on file with the community development department. Any new development or projects that are an addition by increasing the square footage to an existing development on property within this overlay district shall comply with the provisions of this chapter. B. Relationship to the underlaying base district. The provisions of the underlying base district shall continue to apply to existing uses and development on a property unless specifically superseded by a MUOD project when a property owner chooses to exercise; however any new development or projects that are an addition by increasing the square footage to an existing development on a property within this overlay district shall comply with the provisions of this chapter. C. Relationship to overlay control districts. If applicable, the objective provisions of any overlay control district shall continue to apply to a property unless specifically superseded by a MUOD project when a property owner chooses to exerciseinitiates A-7 01203.0005 2079817.1 Created: 2025-10-14 09:39:29 [EST] (Supp. No. 3) Page 2 of 27 provisions of this chapter. In the event that the provisions of any overlay control district are in conflict with provisions of this chapter, this chapter shall govern. D. Relationship to state density bonus law. A MUOD project is eligible for a density bonus in accordance with Chapter 17.11 (affordable housing). E. Designation. The application of the MUOD shall be signified by the designation of a "MUOD" suffix following the base district designation on the official zoning map. For example, the use of the MUOD in conjunction with the commercial-general district would be designated as "CG-MUOD." (Ord. No. 678U, § 4(Att. B), 4-16-2024; Ord. No. 680U, § 5(Att. B), 6-4-2024; Ord. No. 681, § 4(Att. B), 6-18-2024) 17.47.030. Administrative review. A. Ministerial approval. MUOD projects for owner-occupied and rental multifamily residential uses where at least 20 percent of the units are affordable to lower income households, as determined by Government Code § 65589.5 and defined by Health and Safety Code § 50079.5, as it may be amended from time to time, are eligible for ministerial approval. Projects that meet that affordability requirement, comply with the provisions of this chapter, and do not require any of the approvals set forth in subsection B, shall be approved ministerially and are not subject to a conditional use permit, planned unit development permit, or other discretionary local government review or approval. The director shall approve an administrative permit to construct and operate a MUOD project under this chapter if the application complies with the provisions of this chapter. MUOD projects that do not meet the 20 percent affordability requirement must follow the conditional use permit application and approval process. B. Need for additional approvals. If an applicant requires approval of an application for a lot line adjustment, merger of parcels, or subdivision in conjunction with approval of an application pursuant to this chapter, a separate application shall proceed in accordance with Title 16, subdivisions. (Ord. No. 678U, § 4(Att. B), 4-16-2024; Ord. No. 680U, § 5(Att. B), 6-4-2024; Ord. No. 681, § 4(Att. B), 6-18-2024) 17.47.040. Development standards. The objective provisions of Article VI (use and development standards) shall apply to all MUOD projects. For exceptions to those provisions and application of additional standards, the development standards contained in this section shall also apply to all MUOD projects. In the event that the provisions of Article VI are in conflict with applicable provisions of this section, this section shall govern. A. Building standards. A-8 01203.0005 2079817.1 Created: 2025-10-14 09:39:29 [EST] (Supp. No. 3) Page 3 of 27 1. Residential density. a. Density standards shall be prescribed in Table 17.47.040).1). and in this subsection. Table 17.47.040(.1). Maximum Residential Density Standards for MUOD Multi-family residential projects Mixed-use projects Maximum Residential Density 45 dwelling units per acre Minimum Residential Density 20 dwelling units per acre b. For all new development or projects that are an addition by increasing the square footage to an existing development in a MUOD overlay projects, a minimum of 25 50 percent of the total gross floor area for the proposed new mixed-use project or addition shall be dedicated to residential uses. c. A project in the MUOD may have up to 100 percent residential use of the total floor area of a project. 2. Setbacks. a. The applicable objective provisions of Section 17.48.030 (setbacks) shall apply with the following exceptions and additional standards as prescribed Table 17.47.040(.2). Table 17.47.040(.2). Minimum and Maximum Building Setback Standards for MUOD Multi-family residential projects Mixed-use projects Front 5 feet min. to 15 feet max. 5 feet min. to 10 feet max. (1) Street Side 5 feet min. to 15 feet max. 5 feet min. to 10 feet max. (1) Rear 10 feet min. 10 feet min. Interior Side 5 feet min. (2) 5 feet min. (2) Table 17.47.040(.2). Notes: (1) Residential units on the ground floor shall have a minimum front and street -side setback of five feet. A-9 01203.0005 2079817.1 Created: 2025-10-14 09:39:29 [EST] (Supp. No. 3) Page 4 of 27 (2) A minimum interior side setback shall be the same as required for a residential use on the abutting RS-district lot. In cases where abutting property is outside of the city boundary, a minimum five-foot setback shall apply. b. Setback Encroachments. In addition to the applicable exceptions provided in Section 17.48.030 (setbacks), the following setback encroachments are allowed within setbacks not more than six inches for each foot of the required setback: i. Landscaping per subsection 17.47.040(.B). of this chapter; ii. Fences, walls, and hedges per subsection 17.47.040(.B). of this chapter; iii. Shade structures, such as awnings, trellises, canopies, or sunshades, as approved by the director; iv. Architecturally defined building entries, such as porches, stoops, or terraces, as approved by the director; v. For mixed-use projects only, outdoor display and sales of merchandise per subsection 17.47.040(.D). of this chapter. 3. Building height. a. The applicable objective provisions of Section 17.48.050 (building height) shall apply with the following exceptions as prescribed in Table 17.47.040(.3) and in this subsection. Table 17.47.040(.3). Maximum Building Height Standards for MUOD Multi-family residential projects Mixed-use projects Max. Building Height 60 feet 4. Facçade modulation and articulation. a. Facçade break. Building facades with frontage along a street shall provide for the entirety of the wall plane a projection or recess of five feet in depth for every 50 to 100 feet of continuous horizonal length of building façadefacade, as shown in Figure 17.47.040(.1). A-10 01203.0005 2079817.1 Created: 2025-10-14 09:39:29 [EST] (Supp. No. 3) Page 5 of 27 Figure 17.47.040(.1). Façade Break b. Blank facçades. Blank building facades shall be prohibited. Building facades without the use of windows or doors shall not span a continuous horizontal length greater than 20 feet across any story, as shown in Figure 17.47.040(.2). Figure 17.47.040(.2). Blank Facçades c. Facçade modulation and articulation. Building facades facing a street shall incorporate at least one of the following design features for at least 25 percent of the façade area, as shown in Figure 17.47.040 (.3). i. Building step-backs, recesses/reliefs, and/or projections of at least 2 feet in depth, ii. Use of balconies, decks, porches, patios, and/or terraces, and/or A-11 01203.0005 2079817.1 Created: 2025-10-14 09:39:29 [EST] (Supp. No. 3) Page 6 of 27 iii. Use of awnings, lattices, louvers, and/or other shading devices as approved by the director. Figure 17.47.040.3. Facçade Modulation and Articulation 5. Ground floor. a. Ground floor building entries. Building facades with frontage along a street shall provide a minimum of one ground floor building entry per building facade. The building entry shall be visible from the street, be oriented towards the street, and provide a pedestrian walkway to the sidewalk along each abutting public right-of-way. Building entries with no frontage along a street shall be oriented towards common areas, such as courtyards, plazas, and paseos. b. Ground floor dwelling units. Each at-grade ground floor dwelling unit facing a street shall have its own ground floor building entry that is visible from the street, oriented towards the street, and provides a pedestrian walkway to the sidewalk along the street, as shown in Figure 17.47.040.4. A-12 01203.0005 2079817.1 Created: 2025-10-14 09:39:29 [EST] (Supp. No. 3) Page 7 of 27 Figure 17.47.040(.4). Ground Floor Dwelling Units c. Ground floor facçade treatment. Buildings of three or more stories in height shall incorporate one of the following design features along the building facçade with frontage along a street, as shown in Figure 17.47.040(.5). i. A change in façade color between the ground floor and the upper floors. ii. A change in façade material between the ground floor and the upper floors, where the ground floor is distinguished through the application of brick, stone, concrete masonry, or other distinct material as approved by the Director. iii. Recess or projection of the upper floors from the ground floor of at least two feet in depth. A-13 01203.0005 2079817.1 Created: 2025-10-14 09:39:29 [EST] (Supp. No. 3) Page 8 of 27 Figure 17.47.040(.5). Ground Floor Façade Treatment 6. Transparency. a. Nonresidential. Each ground floor facçade shall dedicate at minimum of 50 percent of the facçade area to façade openings, such as windows or doors. The use of tinted, mirrored, or reflective glass is prohibited. b. Residential. Each ground floor facçade shall dedicate a minimum of 25 percent of the façade area to façade openings, such as windows or doors. The use of tinted, mirrored, or reflective glass is prohibited. B. Open space standards. 1. Private open space. a. Private open space standards shall be prescribed in Table 17.47.040(.4). and in this subsection. Table 17.47.040(.4) Private Open Space Requirements per Unit Type for MUOD Multi-family residential projects Mixed-use projects Minimum Area for Usable Private Open Space per Unit 130 square feet 65 square feet b. Each residential unit shall provide at least one private open space that measures at least five feet in length in any direction. A-14 01203.0005 2079817.1 Created: 2025-10-14 09:39:29 [EST] (Supp. No. 3) Page 9 of 27 c. Private open spaces shall not include any portion of required setback area, off-street parking area, driveways, turnaround areas, loading area, storage area or any accessory building. 2. Common open space. a. Common open space requirements are prescribed in Table 17.47.040(.5) and in this subsection. Table 17.47.040(.5). Common Open Space Requirements per Unit Type for MUOD Multi-family residential projects Mixed-use projects Minimum Area for Usable Common Open Space per Unit 100 square feet b. Any common open space shall measure at least 15 feet in length in any direction. c. A minimum of 25 percent of the total area of common open spaces shall be landscaped per subsection 17.47.040(.B). of this chapter. d. A minimum of one tree for every 500 square feet of outdoor common open space area shall be provided within the common open space. e. Common open spaces shall not include any portion of required street setback area, off-street parking area, driveways, turnaround areas, loading area, or storage area. 3. Landscaping. a. The applicable objective provisions for landscaping of Chapter 15.34 (water efficient landscaping) shall apply. 4. Fences, walls, and hedges. a. The applicable objective provisions for fences, walls, and hedges of Section 17.76.30 (fences, walls, and hedges) shall apply. C. Parking standards. 1. Applicability. a. The applicable objective provisions for parking perof Chapter 17.50 (nonresidential parking and loading standards) shall apply to both residential and mixed-use projects in the MUOD with the following exceptions to those provisions and application additional standards in this subsection. A-15 01203.0005 2079817.1 Created: 2025-10-14 09:39:29 [EST] (Supp. No. 3) Page 10 of 27 2. Minimum parking. a. Minimum parking requirements are prescribed in Table 17.47.040 (.6). and in this subsection. Table 17.47.040(.6). Off-Street Parking Requirements for MUOD Residential Uses Minimum Parking Spaces Required per Dwelling Unit 1 space Nonresidential Uses Minimum Parking Spaces Required per Nonresidential Floor Area Retail Sales and Services 2 spaces per 1,000 square feet; Office, Professional and Business Support Hotel 0.5 spaces per hotel room Recreation, Education and Public Assembly Chapter 17.50.20 (parking requirements) Table 17.47.040(.6). Notes: (1) Guest residential parking may be shared with commercial parking in mixed-use projects subject to Section 17.50.030 (joint use and common parking facilities). 3. Parking reduction in proximity to transit. a. Pursuant to Government Code § 65863.2, the required off-street vehicular parking may be waived for certain projects within one-half mile distance of public transit, as applicable. 4. Unbundled parking. a. For dwelling units included in MUOD projects, vehicular parking spaces shall be leased or sold separately from dwelling unit rental or purchase fees, such that renters or buyers have the option of renting or buying the dwelling unit at a lower price than if the parking space was included. In addition, the following shall apply: i. For deed-restricted affordable dwelling units, one parking space shall be included in the base rent of each unit. The tenant may choose to receive the parking space or receive a rent discount equivalent to half the amount charged for monthly lease of a parking space. Tenants of affordable dwelling units shall not sublease their parking spaces. A-16 01203.0005 2079817.1 Created: 2025-10-14 09:39:29 [EST] (Supp. No. 3) Page 11 of 27 ii. Renters or buyers have the right of first refusal to parking built for their unit. Any remaining spaces may be leased to other users on a month-to-month basis. New occupants shall have the opportunity to lease or purchase parking built for their unit. 5. Screening. a. Screening. All parking areas, including at-grade surface parking and above-grade structured parking, facing a street or abutting a residential use shall be screened by landscaping, buildings, or other screening treatments, such as fencing or green wall, as approved by the director, so as not to be visible from the street or other uses on the site. Entry/exit openings, driveways, drive aisles, curb cuts, and access lanes for vehicular, fire, utilities, and pedestrian access are exempt from screening. b. Surface parking. At-grade surface parking shall be prohibited within the street setback, such that parking is located to the rear of the parcel or behind buildings. c. Below-grade structured parking. Below-grade structured parking shall be exempt from street setback requirements. D. Site standards. 1. Lot. a. The applicable objective provisions for lots of Section 17.48.020 (lot area and dimensions) shall apply. 2. Access and circulation. a. In order of priority and subject to approval by the director and the city's traffic engineer, vehicular access shall be provided from (a) an alley, rear street, or perimeter drive aisle, (b) a side street, (c) an existing or relocated access point on a front street, and (d) a new access point on a front street. 3. Slope and grading. a. The applicable objective provisions for slope and grading shall apply. i. Section 17.48.060 (extreme slope); ii. Section 17.76.040 (grading permit); iii. Section 17.76.060 (extreme slope permit); and iv. Section 17.76.130 (geologic investigation permit). 4. Intersection visibility. A-17 01203.0005 2079817.1 Created: 2025-10-14 09:39:29 [EST] (Supp. No. 3) Page 12 of 27 a. The applicable objective provisions for intersection visibility of Section 17.48.070 (intersection visibility) shall apply. 5. Exterior lighting. a. The applicable objective provisions for exterior lighting of Chapter 17.56 (environmental protection) shall apply. 6. Underground utilities. a. The applicable objective provisions for underground utilities of Section 17.54.020 (underground utilities) shall apply. 7. Trash and recycling. a. The applicable objective provisions for trash and recycling of Section 17.54.030 (trash receptacle enclosures) and Section 17.58.030 (requirements and guidelines for collecting and loading of recyclable materials in development projects) shall apply. 8. Mechanical equipment, storage areas, and loading docks. a. The applicable objective provisions for mechanical equipment, storage areas, and loading docks of Section 17.54.040 (screening of mechanical equipment, storage areas, and loading docks) shall apply. 9. Signs. a. The applicable objective provisions for signs of Chapter 17.75 (sign code) shall apply. 10. Outdoor display and sales of merchandise. a. For mixed-use projects only, The applicable objective provisions of Chapter 17.62 (special use permits) for the temporary outdoor display and sale of merchandise shall apply. 11. Dedications, ROW improvements, and off-site improvements. a. The applicable objective provisions of Chapter 17.52 (dedications, right-of-way improvements, and off-site improvements) shall apply. 12. Development projects greater than three acres. a. Development projects, whether on one parcel or across multiple adjoining parcels, with a total developable area of three acres or more shall provide the following: i. Pedestrian accessways, such as walkways, and vehicular accessways with pedestrian access, such as sidewalks, that provide access to public rights-of-way shall be provided for approximately every two acres of developable area. Parking areas, passenger drop-off areas, loading zones, and trash storage areas shall not count as pedestrian accessways. A-18 01203.0005 2079817.1 Created: 2025-10-14 09:39:29 [EST] (Supp. No. 3) Page 13 of 27 ii. A publicly accessible open space, defined as a privately owned space that is open and accessible to the public, such as a plaza or park, shall be provided for approximately every three acres of developable area per the following: iii. Publicly accessible open spaces shall have a minimum area of 400 square feet with a minimum dimension of 20 feet in each direction. iv. Publicly accessible open spaces shall be accessible to the general public and open at a minimum from 8:00 a.m. to 8:00 p.m. (Ord. No. 678U, § 4(Att. B), 4-16-2024; Ord. No. 680U, § 5(Att. B), 6-4-2024; Ord. No. 681, § 4(Att. B), 6-18-2024) 17.47.050. Requesting a MUOD designation. For properties not currently included in the MUOD, the following provisions apply: A. A request for a MUOD designation may be initiated by an application by a property owner made in accordance with the procedures identified in Chapter 17.68 (zone changes and code amendments). B. Application of the overlay district shall be consistent with the objectives of this chapter, the zoning ordinance, and general plan should be reasonably compatible with surrounding land uses, and promote the general health, safety and welfare. (Ord. No. 678U, § 4(Att. B), 4-16-2024; Ord. No. 680U, § 5(Att. B), 6-4-2024; Ord. No. 681, § 4(Att. B), 6-18-2024) 17.47.060. Allowed land uses and permit requirements. A. Allowed uses and permit requirements in the MUOD are listed in Table 17.47.0509.1). B. A definition of each land use is listed in Chapter 17.96 (definitions). C. Uses not listed in Table 17.47.050(.1). are not allowed and subject to Section 17.86.030 (prohibited uses). D. All nonconforming uses are subject to Chapter 17.84 (nonconformities). Key Symbol Description Additional Regulations P Permitted Use CUP Conditional Use Permit required Chapter 17.60 (conditional use permits) A-19 01203.0005 2079817.1 Created: 2025-10-14 09:39:29 [EST] (Supp. No. 3) Page 14 of 27 Table 17.47.050(.1). Allowed Uses and Permit Requirements in MUOD Land Use Type Permission Additional Regulations RESIDENTIAL USES Accessory dwelling unit and junior accessory dwelling unit P Chapter 17.10 (accessory dwelling unit and junior dwelling unit development standards) Day care, small family P Day care, large family P Section 17.76.070 (large family day care home permit) Emergency shelters P Employee housing P Employee, home occupation P Chapter 17.08 (home occupations) Low-barrier navigation center P Mixed-use development P Multiple-family residential P Residential care facility, small P Residential care facility, large P Supportive housing P Transitional housing P COMMERCIAL USES RETAIL SALES AND SERVICES Alcoholic beverage tasting rooms CUP Convenience stores CUP Section 17.76.080 (convenience stores) Dry cleaners/laundry uses which have cleaning operations on site CUP Farmer's market CUP Food hall P Outdoor sale, storage or display of merchandise and/or provisions of services, only in conjunction with a permanent use in a building CUP Personal services P Retail store P Restaurant CUP Restaurant with limited live entertainment P CIVIC, CULTURAL, EDUCATIONAL, AND RECREATIONAL A-20 01203.0005 2079817.1 Created: 2025-10-14 09:39:29 [EST] (Supp. No. 3) Page 15 of 27 Assembly uses, private CUP Religious institutions, such as churches, temples or other places used primarily for religious services, including parochial schools and convents CUP Day nursery or day care center P Governmental facilities CUP Personal improvement services P OFFICE, PROFESSIONAL, AND BUSINESS SUPPORT Administrative and professional office P Business support services P Financial institutions P Medical and dental office P Media production P Chapter 9.16 (still photography, motion picture and television productions) Veterinary clinic P ENTERTAINMENT AND HOSPITALITY Bed and breakfast inn CUP Commercial recreation CUP Hotels CUP TRANSPORTATION, COMMUNICATIONS AND UTILITIES Antenna, commercial and satellite dish CUP Section 17.76.020 (antennas) TEMPORARY USES Motion picture or television productions, and still photography P Chapter 9.16 (still photography, motion picture, and television productions) Temporary special uses and development P Chapter 17.62 (special use permits) (Ord. No. 678U, § 4(Att. B), 4-16-2024; Ord. No. 680U, § 5(Att. B), 6-4-2024; Ord. No. 681, § 4(Att. B), 6-18-2024) A-21 Title 17 - ZONING ARTICLE V. - SPECIAL DISTRICTS CHAPTER 17.48. RESIDENTIAL OVERLAY DISTRICT 01203.0005 2079817.1 Rancho Palos Verdes, California, Code of Ordinances Created: 2025-10-14 09:39:30 [EST] (Supp. No. 3) Page 16 of 27 CHAPTER 17.48. RESIDENTIAL OVERLAY DISTRICT1 17.48.010. Purpose. The residential overlay district (ROD) implements various programs in the city's housing element by facilitating the development of a ROD project of residential-only or residential with limited nonresidential uses on select parcels with an existing institu tional underlying base district designation that encourages: A. An infill development pattern that is compatible with surrounding neighborhoods; B. A compatible mix of uses including residential and supporting, but limited, commercial, institutional, or recreational land uses that co-locates residents with on-site amenities; and C. A diversity of single- and/or multi-family housing types in a residential-only or mixed-use configuration to increase housing choice and affordability. (Ord. No. 678U, § 4(Att. B), 4-16-2024; Ord. No. 680U, § 5(Att. B), 6-4-2024; Ord. No. 681, § 4(Att. B), 6-18-2024) 17.48.020. Applicability. A. Applicable parcels. The ROD is an overlay district applicable to parcels with an institutional underlying base district designation. The ROD shall only apply to the parcels identified in the residential overlay district map on file with the community development department. Any new development or projects that are an addition by increasing the square footage to an existing development on property within this overlay district shall comply with the provisions of this chapter. B. Relationship to the underlaying base district. The provisions of the underlying base district shall continue to apply to existing uses and development on a property unless specifically superseded by a ROD project when a property owner chooses to exercise; however any new development or projects that are an addition by increasing the square footage to an existing development on a property within this overlay district shall comply with the provisions of this chapter. 1Editor's note(s)—Ord. No. 678U, § 4(Att. B), adopted April 16, 2024, renumbered the former Ch. 17.48, §§ 17.48.010—17.48.080 as Ch. 17.49, §§ 17.49.010—17.49.080 and enacted a new Ch. 17.48 as set out herein. The historical notation has been retained with the amended provisions for reference purposes. A-22 01203.0005 2079817.1 Created: 2025-10-14 09:39:29 [EST] (Supp. No. 3) Page 17 of 27 C. Relationship to overlay control districts. If applicable, the objective provisions of any overlay control districts shall continue to apply to a property unless specifically superseded by a ROD project when a property owner chooses to exerciseinitiates provisions of this chapter. In the event that the provisions of any overlay control district are in conflict with provisions of this chapter, this chapter shall govern. D. Relationship to state density bonus law. A ROD project is eligible for a density bonus in accordance with Chapter 17.11 (affordable housing). E. Designation. The application of the ROD shall be signified by the designation of a "ROD" suffix following the base district designation on the official zoning map. For example, the use of the ROD in conjunction with the institutional district would be designated as "I-ROD." (Ord. No. 678U, § 4(Att. B), 4-16-2024; Ord. No. 680U, § 5(Att. B), 6-4-2024; Ord. No. 681, § 4(Att. B), 6-18-2024) 17.48.030. Administrative review. A. Ministerial approval. ROD projects for owner-occupied and rental multifamily residential uses where at least 20 percent of the units are affordable to lower income households, as determined by Government Code § 65589.5 and defined by Health and Safety Code § 50079.5, as may be amended from time to time, are eligible for ministerial approval. Projects that meet that affordability requirement, comply with the provisions of this chapter and do not require any of the approvals set forth in subsection B, shall be approved ministerially and are not subject to a conditional use permit, planned unit development permit, or other discretionary local government review or approval. The director shall approve an administrative permit to construct and operate a ROD project under this chapter if the application complies with the provisions of this chapter. ROD projects that do not meet the 20 percent affordability requirement must follow the conditional use permit application and approval process. B. Need for additional approvals. If an applicant requires approval of an application for a lot line adjustment, merger of parcels, or subdivision in conjunction with approval of an application pursuant to this chapter, a separate application shall proceed in accordance with Title 16, subdivisions. (Ord. No. 678U, § 4(Att. B), 4-16-2024; Ord. No. 680U, § 5(Att. B), 6-4-2024; Ord. No. 681, § 4(Att. B), 6-18-2024) 17.48.040. Development standards. The objective provisions of Article VI (use and development standards) and Article III (institutional and cemetery districts) shall apply to all ROD projects. For exceptions to those provisions and application of additional standards, the development standards contained in this section shall also apply to all ROD projects. In the event that the A-23 01203.0005 2079817.1 Created: 2025-10-14 09:39:29 [EST] (Supp. No. 3) Page 18 of 27 provisions of Articles VI or III are in conflict with applicable provisions of this section, this section shall govern. A. Building standards. 1. Residential density. a. Residential density standards shall be prescribed in Table 17.48.040(.1). and this subsection. b. In calculating density, areas of extreme slope (35 percent or steeper) and/or areas which are determined unsuitable for development, based on submitted and approved geologic reports, shall be excluded. Table 17.48.040(.1). Maximum Residential Density Standards for ROD APN Maximum Number of Dwelling Units per Parcel Minimum Number of Dwelling Units per Parcel 7573-002-014 180 dwelling units 100 dwelling units 7564-024-001 12 dwelling units N/A 7564-024-002 8 dwelling units N/A c. For all new development or projects that are an addition by increasing the square footage to an existing development in a ROD overlay, a minimum of 50 percent of the total gross floor area for the proposed new mixed-use project or addition shall be dedicated to residential uses. d. A project in the ROD may have up to 100 percent residential use of the total floor area of a project. 2. Setbacks. a. The applicable objective provisions for setbacks of Section 17.48.030 (setbacks) and the underlying base district shall apply. 3. Building height. a. The applicable objective provisions for building height of Section 17.48.050 (building height) with the following exceptions as prescribed in Table 17.48.040(.2). Table 17.48.040(.2). Maximum Building Height Standards for ROD A-24 01203.0005 2079817.1 Created: 2025-10-14 09:39:29 [EST] (Supp. No. 3) Page 19 of 27 APN Maximum Building Height 7573-002-014 60 feet 7564-024-001 36 feet 7564-024-002 36 feet 4. Facçade modulation and articulation. a. Facçade break. Building facades with frontage along a street shall provide for the entirety of the wall plane a projection or recess of five feet in depth for every 50 to 100 feet of continuous horizonal length of building facçade, as shown in Figure 17.48.040(.1). Figure 17.48.040(.1). Facçade Break b. Blank facçades. Blank building facades shall be prohibited. Building facades without the use of windows or doors shall not span a continuous horizontal length greater than 20 feet across any story, as shown in Figure 17.48.040(.2). A-25 01203.0005 2079817.1 Created: 2025-10-14 09:39:29 [EST] (Supp. No. 3) Page 20 of 27 Figure 17.48.040.2. Blank Facçades c. Facçade modulation and articulation. Building facades facing a street shall incorporate at least one of the following design features for at least 25 percent of the façade area, as shown in Figure 17.48.040 (.3). i. Building step-backs, recesses/reliefs, and/or projections of at least 2 feet in depth, ii. Use of balconies, decks, porches, patios, and/or terraces, and/or iii. Use of awnings, lattices, louvers, and/or other shading devices as approved by the director. Figure 17.48.040.3. Facçade Modulation and Articulation 5. Ground floor. a. Ground floor building entries. Building facades with frontage along a street shall provide a minimum of one ground floor building entry per A-26 01203.0005 2079817.1 Created: 2025-10-14 09:39:29 [EST] (Supp. No. 3) Page 21 of 27 building facade. The building entry shall be visible from the street, be oriented towards the street, and provide a pedestrian walkway to the sidewalk along each abutting public right-of-way. Building entries with no frontage along a street shall be oriented towards common areas, such as courtyards, plazas, and paseos. b. Ground floor dwelling units. Each at-grade ground floor dwelling unit facing a street shall have its own ground floor building entry that is visible from the street, oriented towards the street, and provides a pedestrian walkway to the sidewalk along the street, as shown in Figure 17.48.040(.4). Figure 17.48.040(.4). Ground Floor Dwelling Units c. Ground floor facçade treatment. Buildings of three or more stories in height shall incorporate one of the following design features along the building facçade with frontage along a street, as shown in Figure 17.48.040(.5). i. A change in facçade color between the ground floor and the upper floors. ii. A change in facçade material between the ground floor and the upper floors, where the ground floor is distinguished through the application of brick, stone, concrete masonry, or other distinct material as approved by the director. iii. Recess or projection of the upper floors from the ground floor of at least two feet in depth. A-27 01203.0005 2079817.1 Created: 2025-10-14 09:39:29 [EST] (Supp. No. 3) Page 22 of 27 Figure 17.48.040.5. Ground Floor Facçade Treatment 6. Transparency. a. Nonresidential. Each ground floor facçade shall dedicate at minimum of 50 percent of the facçade area to facçade openings, such as windows or doors. The use of tinted, mirrored, or reflective glass is prohibited. b. Residential. Each ground floor facçade shall dedicate a minimum of 25 percent of the facçade area to facçade openings, such as windows or doors. The use of tinted, mirrored, or reflective glass is prohibited. B. Open space standards. 1. Private open space. a. Private open space standards shall be prescribed in Table 17.48.040(.3). and in this subsection. Table 17.48.040(.3). Private Open Space Requirements per Unit Type for ROD Dwelling Unit Type Minimum Area of Usable Private Open Space per Unit Single-Family 130 square feet Multi-Family 130 square feet b. Each dwelling unit shall provide at least one private open space that measures at least seven feet in length in any direction. A-28 01203.0005 2079817.1 Created: 2025-10-14 09:39:29 [EST] (Supp. No. 3) Page 23 of 27 c. Private open spaces shall be adjacent to and provide a private, usable area for each dwelling unit, and shall not include any portion of required setback area, off-street parking area, driveways, turnaround areas, loading area, storage area or any accessory building. 2. Common open space. a. The applicable objective provisions for common open space of Section 17.42.040 (development standards, residential planned development) shall apply. 3. Landscaping. a. The applicable objective provisions for landscaping of Chapter 15.34 (water efficient landscaping) shall apply. 4. Fences, walls, and hedges. a. The applicable objective provisions for fences, walls, and hedges of Section 17.76.030 (fences, walls, and hedges) shall apply. C. Parking standards. 1. Minimum parking. a. For single-family dwelling units, The applicable objective provisions for parking of Section 17.02.030 (development standards, single - family residential districts) shall apply. b. For multiple-family dwelling units, The applicable objective provisions for parking of Section 17.42.040 (development standards, residential planned development) shall apply, subject to the exceptions and additional standards in Table 17.48.040(.4). Table 17.48.040(.4) Off-Street Parking Requirements for ROD Multiple-Family Dwelling Units Minimum Parking Spaces Required per Dwelling Unit 1 space c. For nonresidential uses, The applicable objective provisions for parking of Chapter 17.50 (nonresidential parking and loading standards) and the underlying base district shall apply. 2. Screening. a. Screening. With the exception of single-family dwelling units, all parking areas, including at- grade surface parking and above-grade structured parking, facing a street or abutting a residential use shall be screened by landscaping, buildings, or other screening treatments, A-29 01203.0005 2079817.1 Created: 2025-10-14 09:39:29 [EST] (Supp. No. 3) Page 24 of 27 such as fencing or green walls, as approved by the director, so as not to be visible from the street or other uses on the site. Entry/exit openings, driveways, drive aisles, curb cuts, and access lanes for vehicular, fire, utilities, and pedestrian access are exempt from screening. b. Surface parking. With the exception of single-family dwelling units, at- grade surface parking shall be prohibited within the street setback, such that parking is located to the rear of the parcel or behind buildings. D. Site standards. 1. Lot. a. The applicable objective provisions for lots of Section 17.48.020 (lot area and dimensions) shall apply. 2. Access and circulation. a. In order of priority and subject to approval by the director and the city's traffic engineer, vehicular access shall be provided from (a) an alley, rear street, or perimeter drive aisle, (b) a side street, (c) an existing or relocated access point on a front street, or (d) a new access point on a front street. 3. Slope and grading. a. The applicable objective provisions for slope and grading shall apply: i. Section 17.48.060 (extreme slope); ii. Section 17.76.040 (grading permit); iii. Section 17.76.060 (extreme slope permit); and iv. Section 17.76.130 (geologic investigation permit). 4. Intersection visibility. a. The applicable objective provisions for intersection visibility of Section 17.48.070 (intersection visibility) shall apply. 5. Exterior lighting. a. The applicable objective provisions for exterior lighting of Chapter 17.56 (environmental protection) shall apply. 6. Underground utilities. a. The applicable objective provisions for underground utilities of Section 17.54.020 (underground utilities) shall apply. 7. Trash and recycling. A-30 01203.0005 2079817.1 Created: 2025-10-14 09:39:29 [EST] (Supp. No. 3) Page 25 of 27 a. The applicable objective provisions for trash and recycling of Section 17.54.030 (trash receptacle enclosures) and Section 17.58.030 (requirements and guidelines for collecting and loading of recyclable materials in development projects) shall apply. 8. Mechanical equipment, storage areas, and loading docks. a. The applicable objective provisions for mechanical equipment, storage areas, and loading docks of Section 17.54.040 (screening of mechanical equipment, storage areas, and loading docks) shall apply. 9. Signs. a. The applicable objective provisions for signs of Chapter 17.75 (sign code) shall apply. 10. Dedications, ROW improvements, and off-site improvements. a. The applicable objective provisions for dedications, ROW improvements, and off-site improvements of Chapter 17.52 (dedications, right-of-way improvements, and off-site improvements) shall apply. (Ord. No. 678U, § 4(Att. B), 4-16-2024; Ord. No. 680U, § 5(Att. B), 6-4-2024; Ord. No. 681, § 4(Att. B), 6-18-2024) 17.48.050. Requesting a ROD designation. For properties not currently included in the ROD, the following provisions apply: A. A request for a ROD designation may be initiated by an application by a property owner made in accordance with the procedures identified in Chapter 17.68 (zone changes and code amendments). B. Application of the overlay district shall be consistent with the objectives of this chapter, the zoning ordinance, and general plan should be reasonably compatible with surrounding land uses, and promote the general health, safety and welfare. (Ord. No. 678U, § 4(Att. B), 4-16-2024; Ord. No. 680U, § 5(Att. B), 6-4-2024; Ord. No. 681, § 4(Att. B), 6-18-2024) 17.48.060. Allowed land uses and permit requirements. A. Allowed uses and permit requirements in the MUOD ROD are listed in Table 17.48.060(.1). B. A definition of each land use is listed in Chapter 17.96 (definitions). C. Uses not listed in Table 17.48.060(.1). are not allowed and subject to Section 17.86.030 (prohibited uses). A-31 01203.0005 2079817.1 Created: 2025-10-14 09:39:30 [EST] (Supp. No. 3) Page 26 of 27 D. All nonconforming uses are subject to Chapter 17.84 (nonconformities). Key Symbol Description Additional Regulations P Permitted Use CUP Conditional Use Permit required Chapter 17.60 (conditional use permits) Table 17.48.060(.1). Allowed Uses and Permit Requirements in ROD Land Use Type Permission Additional Regulations RESIDENTIAL USES Accessory dwelling unit and junior accessory dwelling unit P Chapter 17.10 (accessory dwelling unit and junior dwelling unit development standards) Emergency shelter P Employee housing for six or fewer people P Employee, home occupation P Chapter 17.08 (home occupations) Low-barrier navigation center P Multiple-family residential P Residential care facility, small P Residential care facility, large P Single-family residential P Supportive housing P Transitional housing P COMMERCIAL AND INSTITUTIONAL USES Minor professional and retail commercial uses which are clearly ancillary to the major use P Governmental facility CUP Section 17.26.030 (uses and development permitted by conditional use permit, institutional district) Educational institution Religious institutions, such as churches, temples or other places used primarily for religious services, including parochial schools and convents Clinics and sanitariums, including animal hospitals A-32 01203.0005 2079817.1 Created: 2025-10-14 09:39:30 [EST] (Supp. No. 3) Page 27 of 27 Sanitariums, nursing homes, rest homes, homes for the aged, homes for children and homes for mental patients. Bed and breakfast inn TEMPORARY USES Temporary special uses and development P Chapter 17.62 (special use permits) Motion picture or television productions, and still photography P Chapter 9.16 (still photography, motion picture and television productions) (Ord. No. 678U, § 4(Att. B), 4-16-2024; Ord. No. 680U, § 5(Att. B), 6-4-2024; Ord. No. 681, § 4(Att. B), 6-18-2024) A-33 STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT DIVISION OF HOUSING POLICY DEVELOPMENT 2020 W. El Camino Avenue, Suite 500 Sacramento, CA 95833 (916) 263-2911 / FAX (916) 263-7453 www.hcd.ca.gov June 12, 2024 Brandy Forbes, Director Community Development Department City of Rancho Palos Verdes 30940 Hawthorne Blvd. Rancho Palos Verdes, CA 90275 Dear Brandy Forbes, RE: City of Rancho Palos Verdes’ 6th Cycle (2021-2029) Adopted Housing Element Thank you for submitting the City of Rancho Palos Verdes’ (City) housing element update adopted on April 16, 2024 and received for review on April 19, 2024. Pursuant to Government Code section 65585, subdivision (h), the California Department of Housing and Community Development (HCD) is reporting the results of its review. Our review was facilitated by a telephone conversation on May 6 and 30, 2024 with you, Octavio Silva, Deputy Director, Jessica Bobbett, Senior Planner and the City’s consultant Matt Kowta. In addition, HCD considered comments from Shahzad Khaligh and Anthony De Clue pursuant to Government Code section 65585, subdivision (c). HCD is pleased to find the adopted housing element in substantial compliance with State Housing Element Law (Gov. Code, § 65580 et seq) as of the date of this letter. The adopted element addresses the statutory requirements described in HCD’s April 5, 2024 findings letter. Furthermore, the City has completed actions in the City’s housing element Program 1 (Zoning Amendments to Increase Housing Development Potential) to rezone sites to accommodate the regional housing needs allocation (RHNA) pursuant to Government Code section 65583.2, subdivision (c) as demonstrated by Ordinance Number 680U. Additionally, the City must continue timely and effective implementation of all programs including but not limited to the following: • Program 4: Accessory Dwelling Unit Ordinance Amendments • Program 7: Accessory Dwelling Unit Assistance Program • Program 15: Place-Based Strategies to Support Areas Targeted for Lower-Income • Program 18: Zoning Ordinance Amendments to Remove Governmental Constraints • Program 19: Transparency in Housing Standards and Fees • Program 20: Implement Development Review Process Improvement • Program 21: Housing Site Development Assistance • Program 23: Housing Conservation and Rehabilitation B-1 Brandy Forbes, Director Page 2 The City must monitor and report on the results of this and other programs through the annual progress report, required pursuant to Government Code section 65400. Please be aware, Government Code section 65585(i) grants HCD authority to review any action or failure to act by a local government that it determines is inconsistent with an adopted housing element or housing element law. This includes failure to implement program actions included in the housing element. HCD may revoke housing element compliance if the local government’s actions do not comply with state law. Several federal, state, and regional funding programs consider housing element compliance as an eligibility or ranking criteria. For example, the CalTrans Senate Bill (SB) 1 Sustainable Communities grant; the Strategic Growth Council and HCD’s Affordable Housing and Sustainable Communities programs; and HCD’s Permanent Local Housing Allocation consider housing element compliance and/or annual reporting requirements pursuant to Government Code section 65400. With a compliant housing element, the City of Rancho Palos Verdes meets housing element requirements for these and other funding sources. HCD appreciates the cooperation and responsiveness the housing element team provided in preparation of the City’s housing element. HCD wishes the City success in implementing its housing element and looks forward to following its progress through the General Plan annual progress reports pursuant to Government Code section 65400. We are committed to assist the City in addressing all statutory requirements of State Housing Element Law. If you have any questions or need additional technical assistance, please contact Fidel Herrera, of our staff, at fidel.herrera@hcd.ca.gov. Sincerely, Melinda Coy Proactive Housing Accountability Chief B-2 Filed 10/10/25 CERTIFIED FOR PUBLICATION IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA SECOND APPELLATE DISTRICT DIVISION THREE NEW COMMUNE DTLA LLC et al., Petitioners and Appellants, v. CITY OF REDONDO BEACH et al., Defendants and Respondents. B336042 Los Angeles County Super. Ct. No. 22TRCP00203 APPEAL from a judgment of the Superior Court of Los Angeles County, Ronald F. Frank, Judge. Reversed and remanded with directions. Rutan & Tucker, Douglas J. Dennington, Peter J. Howell, and Erik Leggio for Petitioners and Appellants. Office of the City Attorney, Michael W. Webb; Richards, Watson & Gershon, Lisa Bond, and Ginetta L. Giovinco for Defendants and Respondents. Patterson & O’Neill, Ryan J. Patterson, Brian O’Neill, and Ephraim S. Margolin as Amicus Curiae on behalf of Petitioners and Appellants. C-1 2 For decades, California has recognized that housing opportunities are not equally available to Californians of all economic levels. It has endeavored to address this problem by enacting a series of laws aimed at promoting development that will meet “the housing needs of all economic segments of the community.” (Gov. Code, § 65580, subd. (d).)1 At issue here is The Housing Element Law.2 It requires local jurisdictions to periodically review and adopt a state-approved “housing element” that explains how they will accommodate their fair share of regionally needed housing. New Commune DTLA LLC and Leonid Pustilnikov3 are developers. New Commune appeals from a denial of its petition for writ of mandate challenging the City of Redondo Beach’s housing element. It argues, among other things, that the housing element failed to adequately identify sites that could realistically accommodate “lower income” housing. (§ 65582, subd. (l).) Specifically, it challenges the City’s use of a zoning “overlay” that would permit construction of affordable multifamily housing on sites that were otherwise zoned for commercial and industrial use. An overlay zone is “superimposed” over existing zoning to permit or restrict additional uses. (1 Rathkopf’s The Law of 1 All statutory references are to the Government Code, unless otherwise specified. 2 The Housing Element Law is codified as Government Code sections 65580 to 65589.11 and found in article 10.6 of chapter 3 of division 1 of title 7 of the Government Code. 3 For ease of reference, we refer below to petitioners, collectively, as New Commune, and to respondents, collectively, as the City. C-2 3 Zoning and Planning (4th ed.) § 1:31, Zoning techniques— Overlay zones.) We reverse. An overlay cannot be used to satisfy the minimum density and residential use requirements set out in section 65583.2, subdivision (h)(2) (hereafter section 65583.2(h)(2)), where the base zoning expressly permits development that does not include housing. We also find that the City has failed to establish that one of the sites identified in the housing element, the Inglewood Avenue site currently occupied by a Vons supermarket, was properly identified as a developable site. THE HOUSING ELEMENT LAW A. Goals of Housing Element Law and Regional Housing Needs Allocation California requires local governments to adopt a “comprehensive, long-term general plan for . . . physical development[.]” (§ 65300.) Each general plan must have a housing element. (§ 65302, subd. (c).) A housing element must identify and analyze existing and projected housing needs, quantify specific objectives for meeting those needs, and program for development of needed housing. (§ 65583.) This requires, among other things, “[a]n assessment of housing needs and an inventory of resources and constraints that are relevant to the meeting of these needs.” (Id., subd. (a).) It also requires a program, specifying what actions the local government is undertaking or intends to undertake to implement the goals and objectives of the housing element, and on what timeline. (Id., subd. (c).) Essentially, the housing element is a set of “standards and plans for housing sites in the municipality that ‘shall endeavor to make adequate provision for the housing needs of all C-3 4 economic segments of the community.’ [Citations.]” (California Building Industry Assn. v. City of San Jose (2015) 61 Cal.4th 435, 444; see also § 65580 [legislative findings concerning Housing Element Law].) Local governments must periodically, and as “frequently as appropriate,” review and evaluate all of the following aspects of their adopted housing element: “(1) The appropriateness of the housing goals, objectives, and policies in contributing to the attainment of the state housing goal. [¶] (2) The effectiveness of the housing element in attainment of the community’s housing goals and objectives. [¶] (3) The progress of the city, county, or city and county in implementation of the housing element. [¶] (4) The effectiveness of the housing element goals, policies, and related actions to meet the community’s needs, pursuant to paragraph (7) of subdivision (a) of Section 65583.” (§ 65588, subd. (a).) After this review and evaluation is completed, local governments must revise their housing element “to reflect the results of this periodic review.” (§ 65588, subd. (b).) “A revised housing element’s assessment of needs must quantify the locality’s existing and projected housing needs for all income levels, which includes the locality’s proportionate share of regional housing needs for each income level.” (Martinez v. City of Clovis (2023) 90 Cal.App.5th 193, 223 (Clovis), citing § 65583, subd. (a)(1).) At a minimum this process must occur on a statutorily established timeline for revision. “The interval between the due dates for the revised housing element is referred to as a planning period or cycle, which usually is eight years.” (Clovis, 90 Cal.App.5th at p. 222, citing § 65588, subds. (e)(3), (f)(1).) C-4 5 For each planning cycle, the Department of Housing and Community Development (HCD) provides local governments, in consultation with regional councils of government and the Department of Finance, a needs assessment. This assessment is referred to as a “regional housing needs allocation” (RHNA) and allocates regional housing need among local governments in the region. (Clovis, supra, 90 Cal.App.5th at p. 223, citing § 65584, subd. (b).) A jurisdiction’s share of the RHNA is separated into four income levels: very low, low, moderate, and above moderate. (§§ 65583.2, subd. (a), 65584, subd. (f).) B. Housing Inventory Requirements As noted above, one aspect of the housing element is an inventory. The inventory of land must include “land suitable and available for residential development, including vacant sites and sites having realistic and demonstrated potential for redevelopment during the planning period to meet the locality’s housing need for a designated income level . . . .” (§ 65583, subd. (a)(3).) The sites available for residential development include (1) vacant sites zoned for residential use, (2) vacant sites zoned for nonresidential use where residential development is allowed, (3) residentially zoned sites that can be developed at a higher density, and (4) sites zoned for nonresidential use which can be redeveloped and rezoned for residential use. (§ 65583.2, subd. (a)(1)–(4).) For nonvacant sites in the inventory, the local government must consider “the extent to which existing uses may constitute an impediment to additional residential development” and “an analysis of any existing leases or other contracts that would perpetuate the existing use or prevent redevelopment of the site for additional residential development.” (§ 65583.2, subd. (g)(1).) C-5 6 When a local government identifies nonvacant sites to accommodate 50 percent of its share of “lower income” housing, i.e., verylow- and low-income housing, the existing use on any given site “shall be presumed to impede additional residential development, absent findings based on substantial evidence that the use is likely to be discontinued during the planning period.” (§ 65583.2, subd. (g)(2).) C. Housing Program and Minimum Requirements for Lower Income Housing Sites After preparing its site inventory, a local government must prepare a program to implement the goals and objectives of its housing element. (§ 65583, subd. (c).) This includes identifying specific actions it will take to make sites with appropriate zoning available. (§ 65583, subd. (c)(1).) The program “shall” accommodate all RHNA-identified need for lower income households. (§ 65583.2, subd. (h)(1).) When the site inventory does not identify adequate sites to accommodate each income level of the RHNA, the local government shall include a program for rezoning the sites in the housing element to “close the gap.” (Clovis, supra, 90 Cal.App.5th at p. 225; § 65583, subd. (c)(1).) The rezoning program shall identify sites that can be developed for housing that comply with section 65583.2, including subdivision (h) (section 65583.2(h)). (§ 65583, subd. (c)(1)(B).) A rezoning program to address unmet needs for lower income housing shall “permit owner-occupied and rental multifamily residential use by right for developments in which at least 20 percent of the units are affordable to lower income households during the planning period.” (§ 65583.2, subd. (h)(1).) “ ‘Use by right’ ” means that a local government cannot require a “conditional use permit, planned unit development permit, or C-6 7 other discretionary local government review or approval” to approve the residential use. (§ 65583.2, subd. (i).) Section 65583.2(h) also requires the sites at issue to be zoned with “minimum density and development standards” of “at least 20 units per acre” in suburban jurisdictions. (§ 65583.2, subds. (c)(3)(B)(iii), (h)(2).)4 Further, at least 50 percent of the lower income housing is required to be “accommodated on sites designated for residential use and for which nonresidential uses or mixed uses are not permitted.” (§ 65583.2(h)(2).) There is an exception to this rule for certain mixed-use sites: subdivision (h)(2) allows a local government to “accommodate all of the lower income housing need on sites designated for mixed use if those sites allow 100 percent residential use and require that residential use occupy 50 percent of the total floor area of a mixed-use project.” (Ibid.) D. Housing Element Adoption Process and HCD Review The Housing Element Law requires the planning agency of a local government to submit a draft of its revised housing element, or subsequent amendments, to HCD for its review and written findings. (§ 65585, subd. (b)(1).) If HCD’s written findings are timely submitted as required by section 65585, the local government must consider the findings “[p]rior to the adoption of its draft element or draft amendment.” (Id., subd. (e).) 4 After the City adopted the housing element at issue in this appeal, section 65583.2 was amended to break subdivision (h) into two paragraphs. As relevant here, the statutory requirements were not substantively changed. (Compare Stats. 2021, ch. 358, § 2.5, eff. Jan. 1, 2022 with Stats. 2024, ch. 282, § 6.5, eff. Jan. 1, 2025.) For clarity, further citations are to the version of section 65583.2(h) effective January 1, 2025. C-7 8 In its written findings, HCD is required to determine whether the draft element substantially complies with the Housing Element Law. (§ 65585, subd. (d).) An adopted housing element may be found to be in substantial compliance by either HCD or a court. (§ 65585.03, subd. (a).) If HCD finds substantial compliance, the housing element is subject to a rebuttable presumption of validity. (§ 65589.3, subd. (a).) If a local government has not adopted a housing element that substantially complies with the Housing Element Law, the local government cannot disapprove affordable housing projects based on inconsistency with a zoning ordinance or the general plan. (§ 65589.5, subd. (d)(1), (2).) FACTUAL AND PROCEDURAL BACKGROUND I. City Charter Provisions Governing “Major Changes In Allowable Land Use” Since 1949, City of Redondo Beach has been a charter city. (Cawdrey v. City of Redondo Beach (1993) 15 Cal.App.4th 1212, 1217.) “Charter cities are specifically authorized by our state Constitution to govern themselves, free of state legislative intrusion, as to those matters deemed municipal affairs.” (State Building & Construction Trades Council of California v. City of Vista (2012) 54 Cal.4th 547, 555.) Municipal land use and zoning regulations are municipal affairs. (Committee of Seven Thousand v. Superior Court (1988) 45 Cal.3d 491, 511.) The City’s Charter is its constitution and supreme law. (See Woo v. Superior Court (2000) 83 Cal.App.4th 967, 974; Domar Electric, Inc. v. City of Los Angeles (1994) 9 Cal.4th 161, 170.) In 2008, the City’s residents passed Measure DD, which added article XXVII to the Redondo Beach City Charter (hereafter Charter). Under article XXVII, section 27.4, approval C-8 9 by a majority of the City voters is required for each “major change in allowable land use.” “Major change in allowable land use” is defined as a proposed amendment of, among other things, the City’s general plan or zoning ordinance. In 2024, the City’s residents passed Measure RB, which amended sections relating to “major changes in allowable land use” to clarify that the public vote requirement does not apply to amendments or updates to the housing element. (See Charter, art. XXVII, § 27.6(h) [stating that article “shall not apply to an amendment to or update of the housing element of the City’s General Plan”].) II. The City’s Sixth Cycle Housing Element Process For the 2021–2029 planning period (sixth cycle), the City’s RHNA was 2,490 units, including 936 very low-income units, 508 low-income units, 490 moderate-income units, and 556 above- moderate income units. The sixth cycle housing element deadline was October 15, 2021. The City submitted its initial draft housing element update to HCD in July 2021, with several revisions submitted thereafter. After exchanges of written findings from HCD concerning deficiencies and two subsequent amendments to the housing element, the City Council adopted a third amended housing element in July 2022, one month after New Commune filed its verified petition for writ of mandate. The City did not send the third amended housing element to HCD prior to adopting it. Contending it included “no changes in land use designations,” the City did not ask its voters for approval. In September 2022, HCD found the third amended housing element to be fully compliant with the Housing Element Law. C-9 10 III. The City’s Residential Overlay Strategy The City’s housing element uses a “residential overlay” to satisfy the RHNA. The overlay here is superimposed over six commercial and industrial districts to accommodate 1,470 residential units. The City’s overlay allows for residential use at densities up to 55 dwelling units per acre. IV. Key Sites: South Bay Marketplace and Inglewood Avenue As relevant to this appeal, the City’s housing element identifies sites at the South Bay Marketplace and 4001 and 4051 Inglewood Avenue. These sites contain parking lots that service retail tenants at shopping centers. The South Bay Marketplace site consists of four parcels that make up a “largely underutilized parking lot.” The housing element identifies this site as able to support 486 lower-income units and allow the existing parking use to remain. The City’s outside expert determined that the housing proposed for the site is physically and financially feasible. As part of its identification and evaluation of the site, the City intended to communicate with the owners of the site regarding redevelopment. The Inglewood site supports 35 very low-income units and 140 above moderate-income units. The owner of the Inglewood site confirmed in writing to the City that it would welcome high- density residential housing on the site, and that it had experience obtaining entitlements to build similar housing on other properties it owns. Vons grocery store is a tenant on the site. The lease between the property owner and Vons allows Vons, in its “sole and absolute discretion,” to withhold consent to changes in the part of the parking area in the contractually defined “Zone of Control.” For changes to the part of the parking area outside the C-10 11 Zone of Control, Vons cannot “unreasonably” withhold, delay, or condition consent. V. Procedural History In June 2022, before the City Council adopted the City’s housing element, New Commune filed a petition for writ of mandate and complaint for declaratory relief. New Commune is a property owner in the City seeking to develop housing. After the City’s housing element was adopted, New Commune amended its petition and complaint to add allegations about the City’s housing element. The trial court denied the petition and complaint. On February 9, 2024, the court entered judgment for the City. New Commune timely appealed. DISCUSSION As a preliminary matter, except for HCD’s correspondence to the City of Yorba Linda presented by the City, which we deem to be irrelevant, we grant the requests for judicial notice from New Commune, the City, and amicus curiae Yes In My Back Yard. (Evid. Code, § 452, subds. (b), (d), (h).) I. Standard of Review Any interested party may bring an action for traditional mandamus under Code of Civil Procedure section 1085 to ensure a housing element’s conformity with the Housing Element Law. (§§ 65583, subd. (h), 65587, subd. (b).) Both trial and appellate courts review whether the housing element “ ‘substantially complies’ ” with the requirements of the Housing Element Law. Substantial compliance means “ ‘ “actual compliance in respect to the substance essential to every reasonable objective of the statute, as distinguished from mere C-11 12 technical imperfections of form.” ’ ” (Clovis, supra, 90 Cal.App.5th at p. 237, italics omitted.) Appellate courts independently determine whether the housing element complies with the Housing Element Law without giving any deference to the trial court. (Fonseca v. City of Gilroy (2007) 148 Cal.App.4th 1174, 1191.) Where HCD has determined a housing element or amendment substantially complies with the Housing Element Law, the burden of proof shifts to the party challenging the housing element to demonstrate that the presumption of validity is incorrect. (Clovis, supra, 90 Cal.App.5th at p. 243; see § 65589.3, subd. (a) [presumption is rebuttable].) II. Measure RB Moots the Charter Voter Approval Challenge Having established the legal framework for our review, we turn first to New Commune’s contention that the City’s Sixth Cycle 2021–2029 Draft Housing Element (the City’s housing element) is invalid because the City’s voters did not approve it under article XXVII, section 27.4 of the Charter. The trial court agreed that the City’s housing element constituted a “major change in allowable land use,” but determined that the state Housing Element Law preempts the Charter’s voter approval requirement. We do not reach this issue because it is moot. After the appeal was fully briefed, the City’s voters approved Measure RB. As a result, the Charter now states that article XXVII, which contains the requirement of voter approval for “major changes in allowable land use,” does not apply to amendments to or updates of the housing element of the City’s general plan. (Charter, art. XXVII, § 27.6(h).) C-12 13 Because writs of mandate operate prospectively, we apply the law currently in effect. (See Flores v. Department of Transportation (2022) 76 Cal.App.5th 678, 681–683 [applying revised statute while appeal was pending to suits for injunctive and writ relief]; Citizens for Positive Growth & Preservation v. City of Sacramento (2019) 43 Cal.App.5th 609, 626 [applying current law at time of appellate court judgment in mandamus proceedings].) Based on the amended Charter, amendments or updates to the housing element do not require voter approval. III. The City’s Residential Overlay Zone Violates the Housing Element Law New Commune argues that the City’s accommodation of RHNA through a residential overlay fails to comply with the Housing Element Law. After examining the overlay at issue and the statutory framework, we conclude that the City’s residential overlay violates the Housing Element Law for two independent reasons. First, the overlay fails to satisfy section 65583.2(h)(2)’s mandatory minimum density requirement of 20 units per acre because the underlying commercial and industrial zoning permits development of identified sites within the overlay zone that does not include housing, i.e., that permits construction with zero residential units. Second, the overlay violates section 65583.2(h)(2)’s requirement that at least 50 percent of lower- income housing sites be “designated for residential use and for which nonresidential uses or mixed uses are not permitted” because it preserves underlying commercial and industrial uses and fails to satisfy the mixed-use exception. We address each reason in turn, then explain why HCD’s approval cannot override these clear statutory violations. C-13 14 A. Section 65583.2(h)’s Minimum Density Requirements Are Mandatory The Fifth District’s decision in Clovis represents the first and only published appellate analysis of section 65583.2(h)’s minimum density requirements. The Clovis court determined that “section 65583.2(h) clearly imposes a minimum density requirement when a jurisdiction is required to rezone sites to accommodate a shortfall for the current planning period . . . .” (Clovis, supra, 90 Cal.App.5th at p. 244.) It rejected an overlay superimposed on a residential zone that would have permitted development below 20 units per acre. (Id. at p. 238.) The parties devote significant space in their briefs to discussing the merits of Clovis, with the City arguing that it was incorrectly decided or distinguishable. Although it relies on the mixed-use exception specifically, discussed in greater detail post, the City argues generally that section 65583.2(h) allows an overlay that merely permits, as opposed to requires, development of at least 20 units per acre for sites identified to fulfill the unmet need for lower income housing. We agree with Clovis that section 65583.2(h) is unambiguous and imposes a mandatory minimum density requirement. Statutory interpretation begins with a review of the statute’s words, which are construed using their “usual and ordinary meanings” and “in context.” (Wells v. One2One Learning Foundation (2006) 39 Cal.4th 1164, 1190.) The statute’s plain language governs when the words are unambiguous and do not reasonably permit any other construction. (Ibid.) Section 65583.2, subdivision (h)(1), sets forth the requirements for a rezoning program when the inventory of available sites does not accommodate 100 percent of the C-14 15 identified need for lower income housing. Section 65583.2, subdivision (h)(1) provides that sites accommodating the unmet need “shall be zoned to permit owner-occupied and rental multifamily residential use by right in which at least 20 percent of the units are affordable to lower income households . . . .” (§ 65583.2, subd. (h)(1).) Read alone, this subdivision could support an argument that an overlay complies with the Housing Element Law if it merely permits development of at least 20 units per acre. But this section must be read in conjunction with section 65583.2(h)(2), which provides that “[t]hese sites shall be zoned with the minimum density and development standards” and “shall be at least 20 units per acre” in suburban jurisdictions like the City. A housing overlay that allows development below the “minimum” density requirements is inconsistent with the plain language of section 65583.2(h)(2). “Minimum” means the least acceptable quantity possible. (See Black’s Law Dict. (12th ed. 2024) [defining “minimum” as “[o]f, relating to, or constituting the smallest acceptable or possible quantity in a given case”]; Merriam-Webster, at https://www.merriam- webster.com/dictionary/minimum [defining “minimum” as “the least quantity assignable, admissible, or possible”].) Courts consistently interpret a statutory “minimum” as a floor below which something cannot go. (See Shuts v. Covenant Holdco LLC (2012) 208 Cal.App.4th 609, 620–621; Armenta v. Osmose, Inc. (2005) 135 Cal.App.4th 314, 321, 324; Morse v. Industrial Accident Commission (1951) 108 Cal.App.2d 355, 356.) The City argues, though, that section 65583.2 cannot be interpreted as requiring a mandatory minimum density of 20 dwelling units per acre on all sites because subdivision (h)(2) C-15 16 allows 50 percent of RHNA to be accommodated on sites that permit other uses. It also argues mixed-use sites “cannot be designated only for mixed-use projects” because section 65583.2(h)(2) “mandates that projects with 100 percent residential be allowed” under the mixed-use exception. Section 65583.2(h)(2) provides two mutually exclusive options for site designation, neither of which is severable from the mandatory minimum density requirements. Under the default requirement, “[a]t least 50 percent of the lower income housing need shall be accommodated on sites designated for residential use and for which nonresidential uses or mixed uses are not permitted.” (§ 65583.2(h)(2).) Alternatively, the mixed-use exception permits jurisdictions to “accommodate all of the lower income housing need on sites designated for mixed use” if those sites “allow 100 percent residential use and require that residential use occupy 50 percent of the total floor area of a mixed-use project.” (Ibid.) Although the phrase “sites designated for mixed use” is not explicitly defined in the Housing Element Law, the parameters of the phrase are inherent in the language of section 65583.2(h) itself. “Mixed use” sites for purpose of the exception are those that meet the minimum density requirements in subdivisions (h)(1) (“at least 20 percent of the units are affordable to lower income households”) and (h)(2) (“sites shall be zoned with minimum density . . . at least 20 units per acre”) and are zoned per subdivision (h)(2) to accommodate projects that may contain both residential and nonresidential construction, provided that residential use occupies no less than 50 percent, and up to 100 percent, of total floor area. The fact that residential construction may comprise 100 percent of total floor area on a “sites C-16 17 designated for mixed use” does not suggest municipalities are required or encouraged to zone sites with inconsistent use designations. “Sites designated for mixed use” are those that meet minimum requirements to qualify under this exception, and not those tied to a specific zoning regulation or use designation as might appear in a local zoning ordinance. Generally, allowable land “uses” and their geographic distribution are prescribed in local zoning ordinances that must conform to the adopted general plan in each municipality, including charter cities. (Neighborhood Action Group v. County of Calaveras (1984) 156 Cal.App.3d 1176, 1183; § 65860.) Nothing in the statute suggests the Legislature intended the Housing Element Law to require or permit a municipality to effect land use changes potentially in conflict with local zoning ordinances without engaging in the processes such rezoning typically requires. We therefore disagree with the City’s argument that subdivision (h)(2) requires or encourages multiple inconsistent “uses” in a single zone.5 5 Given the uniformity requirements in the Planning and Zoning Law, it would be difficult to read section 65583.2(h)(2) as encouraging multiple inconsistent uses, as a matter of right, in a single zone. Although not applicable to charter cities absent local adoption of a uniform use requirement (§ 65803), section 65852 generally precludes the type of inconsistent land uses in a single zone that the City is proposing to create with its overlay. Section 65852, however, is inapplicable to the City, and the parties have not addressed whether the City’s Municipal Code or any zoning ordinance permits inconsistent uses. For that reason, and because we find the overlay at issue inconsistent with the Housing Element Law, we do not reach the issue of whether the overlay is inconsistent with any local law governing inconsistent C-17 18 To the extent that the language of section 65583.2(h)(2) is ambiguous, we interpret the statute with an eye toward effectuating its purpose and may look to legislative history and public policy. (Prang v. Los Angeles County Assessment Appeals Bd. (2024) 15 Cal.5th 1152, 1170.) The stated purpose of the Housing Element Law and related legislative history also suggest that the minimum density standards are a mandatory minimum floor for site identification. In enacting the Housing Element Law, the Legislature prioritized the expansion of housing opportunities and the attainment of housing for Californians of all economic levels. (§ 65580, subds. (a), (b).) It found that providing affordable housing “requires the cooperation of all levels of government.” (Id., subd. (c).) It also determined that local and state governments have a duty to “facilitate the improvement and development of housing to make adequate provision for the housing needs of all economic segments of the community.” (Id., subd. (d).) To further these goals, the Legislature enacted the Housing Element Law expressly to assure that local governments “will prepare and implement housing elements which . . . will move toward attainment of the state housing goal.” (§ 65581, subd. (b).) The Housing Element Law “shall be construed consistent with, and in promotion of, the statewide goal of a sufficient supply of decent housing to meet the needs of all Californians.” (§ 65589, subd. (d).) Before 2017, the Housing Element Law allowed cities to adopt housing elements without considering the realistic uses, or, whether as a general matter, the form of overlay used here runs afoul of section 65852. C-18 19 development potential of identified sites. At that time, section 65583.2, subdivision (c), required local governments to determine whether the sites identified in the housing element could accommodate some portion of their RHNA. Section 65583.2, subdivision (c), did not address whether development would realistically occur. Local governments were able to “circumvent” their obligation to accommodate affordable housing by “relying on sites that aren’t truly available or feasible for residential development, especially multifamily development.” (Assem. Com. on Housing and Community Development, Analysis of Assem. Bill No. 1397 (2017–2018 Reg. Sess.) Apr. 17, 2017.) This prompted the Legislature to enact Assembly Bill No. 1397 (AB 1397) in 2017. This legislation amended section 65583.2, subdivision (c), to require local governments to “determine whether each site in the inventory can accommodate the development of some portion of its share of the regional housing need by income level during the planning period . . . .” (Stats. 2017, ch. 375, § 4, p. 91, italics added [adding “the development of” to § 65583.2, subd. (c)].) Since the enactment of AB 1397, housing element inventories must state the number of units that can “realistically be accommodated” at each site and whether the site “is adequate to accommodate lower-income housing, moderate-income housing, or above moderate-income housing.” (Stats. 2017, ch. 375, § 4, p. 91; compare § 65583.2, subd. (c).) AB 1397 codified the goal of the Housing Element Law, which was not merely to require identification of sites that could theoretically accommodate housing need, but to encourage development to meet housing needs. (See Elmendorf et al., Making It Work: Legal Foundations for Administrative Reform of C-19 20 California’s Housing Framework (2020) 47 Ecology L.Q. 973, 992, 1030, fn. 308.) Overlays that allow for development below the prescribed density conflict with the Housing Element Law as modified by AB 1397. AB 1397 was not the only legislative change designed to clarify the Legislature’s intent that housing laws expand realistic development opportunities or affordable lower income housing. Assembly Bill No. 1690 (AB 1690), enacted in 2014, also attempted to address this problem relative to the mixed-use exception. The purpose of AB 1690 was to allow local jurisdictions to identify mixed-use sites to meet RHNA allocations for lower income housing when existing sites were inadequate. (Assem. Floor Analysis, 3d reading analysis of Assem. Bill No. 1690 (2013–2014 Reg. Sess.) May 14, 2014.) An early draft of the legislation provided, “At least 50% of the very low- and low- income housing need shall be accommodated on sites designated for residential use or mixed-uses.” (Assem. Bill No. 1690 (2013– 2014 Reg. Sess.) as introduced Feb. 13, 2014.) Subsequent analysis of the bill identified a concern that “mixed-use zones . . . do not necessarily require mixed uses or the inclusion of housing on the site,” which could result in “commercial development occupying all or large portions of sites needed for affordable housing.” (Sen. Transportation and Housing Com., Analysis of Assem. Bill No. 1690 (2013–2014 Reg. Sess.) June 24, 2014.) One suggestion to address this concern was to “consider amending the bill to allow a city or county to accommodate all of its very low- and low-income housing need on sites designated for mixed uses only if those sites allow 100% C-20 21 residential use and require at least 50% residential floor area.” (Ibid., bold omitted.) The Senate amended the bill as suggested. Subsequent analysis in the Assembly also noted that lack of a requirement for sites in mixed-use zones to include housing “could result in commercial development occupying all or large portions of sites needed for affordable housing.” (Assem. Floor Analysis, Concurrence in Senate Amendments (2013–2014 Reg. Sess.) Aug. 21, 2014.) Further, the Floor Analysis of the Senate’s alterations to the bill stated: “As the rezoning program only applies if a local government fails to identify adequate sites to accommodate its RHNA share, it is especially important to encourage the actual development of affordable housing in these localities. With this in mind, the Senate amendments narrow the bill’s original mixed-use zoning provision by only permitting mixed-use sites that allow 100% residential use and require at least 50% residential floor area.” (Ibid.) This history evidences the Legislature’s intent to prevent local jurisdictions from including in their housing element sites that have little to no probability of being used to meet identified housing needs. Subdivision (h)(2) must be construed in this context to the extent it is ambiguous. (§ 65589, subd. (d).) This undercuts the City’s argument that there is no requirement to compel residential use on mixed-use project sites. B. The City’s Overlay Does Not Comply With Section 65583.2(h) As explained above, section 65583.2(h)(2) provides two mutually exclusive options for site designation, the default option and mixed-use option, neither of which is severable from the mandatory minimum density requirements. The City’s overlay does not comply with any of these requirements. C-21 22 1. The overlay allows development with zero residential units The housing element at issue accommodates 1,223 lower- income residential units through a residential overlay applied to sites zoned for commercial and industrial use. The overlay allows for a density of 55 dwelling units per acre. The overlay does not eliminate the commercial and industrial base zoning on the identified sites. The City’s housing element provides: “The residential overlay will allow either the underlying use, the residential use at a gross calculation of density, or both as a mixed use site.” The question presented here is whether the existing base zoning renders the overlay unlawful under section 65583.2. New Commune argues that the overlay subverts the purpose of the Housing Element Law by allowing the housing element to identify sites that accommodate RHNA but that, in actuality, may be developed without any residential component. For this reason, New Commune argues that the housing element fails to satisfy the applicable density requirement under section 65583.2, subdivision (c)(3)(B)(iii) [“at least 20 units per acre”]. We agree with New Commune. Clovis held that overlays are unlawful when they allow development below the statutory minimum density. The City argues that Clovis was incorrectly decided or distinguishable because, unlike the overlay here, the overlay in Clovis was superimposed over residential base zoning. The City also emphasizes that the overlay here “is applied to existing older industrial and commercial uses that are ripe for redevelopment.” These distinctions are insignificant. The Clovis court found that “section 65583.2(h) clearly imposes a minimum density requirement when a jurisdiction is required to rezone C-22 23 sites to accommodate a shortfall for the current planning period . . . .” (Clovis, supra, 90 Cal.App.5th at p. 244.) This is consistent with our interpretation of section 65583.2(h). The City’s overlay is inconsistent with the mandatory minimum density requirements because it allows development on identified sites without requiring any residential construction, i.e., it allows for construction with zero residential units. 2. The overlay does not comply with the default requirements or mixed-use exception in section 65583.2(h)(2) In addition to the minimum density standard at issue in Clovis, section 65583.2(h)(2) separately requires that at least 50 percent of lower income housing sites be “designated for residential use and for which nonresidential uses or mixed uses are not permitted.” The exception to this requirement is that a city may accommodate all its lower income housing need on mixed-use sites. The City’s overlay fails because it cannot satisfy any of these requirements. Section 65583.2(h)(2) establishes that “At least 50 percent of the lower income housing need shall be accommodated on sites designated for residential use and for which nonresidential uses or mixed uses are not permitted . . . .” (Italics added.) The phrase “not permitted” constitutes an absolute prohibition. “Not permitted” means forbidden, prohibited, or eliminated entirely. (See Black’s Law Dict. (12th ed. 2024) [defining “not permitted” as “forbidden by law or regulation”].) The City’s overlay preserves underlying commercial and industrial zoning that expressly permits nonresidential uses including retail, office, manufacturing, and warehousing. Because C-23 24 the statute requires that certain uses be proscribed, i.e., “not permitted,” an overlay that preserves those uses does not comply with subdivision (h)(2). The City cannot simultaneously permit and prohibit a particular use on a single site. Because the City’s overlay maintains commercial and industrial zoning rights that section 65583.2(h)(2) requires be eliminated, the overlay fails as a matter of law. Likewise, the City’s overlay cannot qualify for the mixed- use exception. By preserving the underlying commercial and industrial zoning, thereby allowing future development without any residential component, the overlay fails to meet the requirement that residential use occupy no less than 50 percent, and up to 100 percent, of total floor area of projects on the designated sites. These are independent bases for invalidating the City’s housing element, separate from the minimum density violations discussed above. 3. Statutory violations cannot be cured by HCD approval The City contends that we should defer to HCD, the agency that enforces the Housing Element Law. According to the City, HCD’s guidance concerning overlay zoning further supports the presumption of validity arising from HCD’s approval of the City’s housing element pursuant to section 65589.3. HCD’s “Housing Element Site Inventory Guidebook” refers explicitly to the use of overlays to support lower income housing. Courts “accord significant weight and respect to the long- standing construction of a law by the agency charged with its enforcement.” (In re Dannenberg (2005) 34 Cal.4th 1061, 1082, overruled on other grounds in In re Lawrence (2008) 44 Cal.4th C-24 25 1181, 1191.) But courts “remain the final arbiters of statutory meaning.” (Center for Biological Diversity, Inc. v. Public Utilities Com. (2025) 18 Cal.5th 293, 303.) While HCD has specific statutory authority under section 65583, subdivision (a), to develop definitions, standards, and forms for housing elements, this authority does not extend to rewriting statutory requirements. Even when an agency has enhanced statutory authority, courts independently interpret clear legislative mandates rather than defer to agency interpretations that conflict with plain statutory language. (Riddick v. City of Malibu (2024) 99 Cal.App.5th 956, 968.) As we have discussed at length above, there is nothing ambiguous about the word “minimum” in section 65583.2(h)(2). It is not clear that HCD’s guidelines conflict with this reading merely because they provide that overlay zones may be used to “ensure maximum allowable densities can be achieved.” For example, HCD’s guidance also provides that development standards, such as height limits and required commercial use on ground floors in mixed-use projects, must still “allow for the density allowed under the overlay.” But to the extent that HCD’s guidance conflicts with the minimum density requirements articulated in the statute, it is not entitled to deference. Section 65583.2(h)(2) also clearly declares that nonresidential uses are “not permitted,” except to the extent the mixed-use exception applies. The overlay here permits nonresidential uses on sites designated to accommodate more than 50 percent of the unmet lower income housing need, without also meeting the mixed-use exception requirements, in contravention of section 65583.2(h)(2). To the extent HCD’s guidelines support this type of overlay, they are contrary to law C-25 26 and not entitled to deference. HCD’s approval of the housing element here does not cure the myriad defects we have identified. That is, although there is a rebuttable presumption here that the City’s housing element is valid (§ 65589.3), New Commune has met its burden to show that the element is unlawful. We recognize the City expended significant time and energy preparing the housing element and responding to HCD findings. We also recognize the potential practical problems inherent in rezoning. But the Legislature has established minimum density requirements and cabined the discretion of local jurisdictions to prevent them from overriding those requirements. We decline the invitation to reconsider the wisdom or practicality of this approach. For these reasons, we find that the City’s housing element does not substantially comply with the Housing Element Law. New Commune is entitled to a writ of mandate directing the City to develop a housing element that complies with section 65583.2(h)(2). IV. Identified Nonvacant Sites Having determined that the overlay zone fails to comply with statutory requirements, we turn to New Commune’s challenge to individual identified sites. At least one of the identified nonvacant sites was not properly identified as a developable site. A. Legal Standard for Nonvacant Sites Housing elements must contain an “inventory of land suitable and available for residential development, including vacant sites and sites having realistic and demonstrated potential for redevelopment during the planning period to meet C-26 27 the locality’s housing need for a designated income level . . . .” (§ 65583, subd. (a)(3).) HCD’s guidelines define “vacant site” as “a site without any houses, offices, buildings, or other significant improvements on it.” Development of the land or the addition of permanent structures on the property constitute improvements. In identifying sites, cities must consider “the extent to which existing uses may constitute an impediment to additional residential development” and “any existing leases or other contracts that would perpetuate the existing use or prevent redevelopment of the site for additional residential development.” (§ 65583.2, subd. (g)(1).) When a city uses nonvacant sites to satisfy more than 50 percent of the lower income housing need, cities must “demonstrate that the existing use . . . does not constitute an impediment to additional residential development during the period covered by the housing element.” (Id., subd. (g)(2).) An existing use is presumed to impede additional residential development, “absent findings based on substantial evidence that the use is likely to be discontinued during the planning period.” (Ibid.) Substantial evidence is reasonable, relevant, and credible evidence of solid value which “a reasonable mind might accept as adequate to support a conclusion.” (California Youth Authority v. State Personnel Bd. (2002) 104 Cal.App.4th 575, 584–585.) It is undisputed that the City claims to accommodate more than 50 percent of the lower income housing need using nonvacant sites. The City has an RHNA obligation of 936 very low-income units and 508 low-income units for a total of 1,444 lower income housing units. The City has approved 50 units at vacant sites and projects the construction of 144 accessory dwelling units for a total of 194 vacant sites. The City seeks to C-27 28 accommodate the remaining allocation—more than half of the lower income housing need— using nonvacant sites. New Commune specifically challenges the identified sites at South Bay Marketplace and 4001/4051 Inglewood Avenue.6 B. Identification of South Bay Marketplace Is Supported By Substantial Evidence According to the City’s housing element, the overlay at South Bay Marketplace consists of four parcels of land comprising a parking lot. The parking lot currently serves retail tenants at the marketplace. The City contends that the site can accommodate a total of 486 lower income housing units. New Commune faults the City for not having confirmed with the property owners that the site is free from any lease requirements and that the property owners would agree to the development of housing on their properties. In support of these assertions, New Commune refers to the City housing element’s statement that the City “will engage” with its economic development agency to “facilitate direct and targeted communications with property owners” concerning redevelopment. 6 Petitioners do not specifically address other sites, instead contending that “numerous” other sites suffer from “similar issues.” The appellant bears the burden of demonstrating the error in the trial court judgment. (Hernandez v. California Hospital Medical Center (2000) 78 Cal.App.4th 498, 502.) Because petitioners do not present any argument or citation to the record concerning other nonvacant sites, they have waived any challenge to those sites. (Employers Mutual Casualty Co. v. Philadelphia Indemnity Ins. Co. (2008) 169 Cal.App.4th 340, 351–352.) C-28 29 The City’s housing element states that the site is a “largely underutilized parking lot” for the South Bay Marketplace which “does not support other off-site uses.” The City’s housing element also states that residential development on the site would not require displacement of existing uses because the parcels composing the site are separate from parcels with existing structures. Further, the City retained an expert who assessed the feasibility of developing 486 units of very low-income housing on the site. The expert determined that even incorporating existing parking requirements into the construction, the development is physically feasible. The expert also determined that the proposed development is financially feasible with common sources of funding for affordable housing projects, including tax credits, grants, and loans. While the City has not confirmed the property owners’ willingness to allow development on the site, the expert reviewed affordable housing projects in nearby cities and opined that such projects “routinely support land values per acre” which are “sufficient to induce development” of the proposed housing. Based on the current underutilization of the site, as well as the physical and financial feasibility found by the expert, the City presents substantial evidence that the existing parking on the site will be discontinued and not impede the development of lower income housing. Because HCD determined the City’s housing element was valid, there is a presumption of validity that New Commune bears the burden to rebut. (See West Washington Properties, LLC v. Department of Transportation (2012) 210 Cal.App.4th 1136, 1144; Clovis, supra, 90 Cal.App.5th at p. 243.) New Commune has not demonstrated that development of lower income housing on the site is physically or C-29 30 financially infeasible. Accordingly, we cannot find that the City’s identification of the South Bay Marketplace site to accommodate lower income housing was invalid. C. Identification of Inglewood Avenue Sites Is Not Supported By Substantial Evidence The City’s housing element also includes 4001 and 4051 Inglewood Avenue, which are currently leased by, among other retail establishments, a Vons grocery store. The City claims that the sites have the potential to accommodate 35 very low-income units and 140 above moderate-income units. In support of this claim, the City refers to a letter from the property owner indicating that it would welcome development of high-density residential housing on the site. The property owner also provided examples of other properties where it has incorporated residential housing into commercial property. New Commune, however, demonstrates that limitations on the site impede the development of housing. According to the lease between the property owner and Vons, the “Common Area” includes the parking areas within the “Zone of Control.” The lease restricts the landlord from changing the Common Area without Vons’s written consent; Vons has “sole and absolute discretion” to withhold consent. In other words, Vons has the absolute right to veto the development of housing on the site. The City contends that another portion of the lease provides that Vons cannot “unreasonably” withhold, delay, or condition its consent. While true, the provision pertains to the Common Area outside the Zone of Control. The plan of the site indicates that at least half of the parking area is in the Zone of Control. C-30 31 The City otherwise presents no evidence that Vons would consent to the development of housing in the Zone of Control, or that the land outside the Zone of Control could accommodate the number of units claimed by the City in its housing element. The City has not presented substantial evidence that Vons will discontinue its existing use on the Inglewood Avenue site or that this use will not impede the development of housing. This failure also supports reversal on appeal. V. Issues Not Addressed On Appeal Having determined that the housing element must be revised to address the violations identified above, we do not reach the issue of whether the City could lawfully adopt its housing element before HCD determined the draft plan substantially complied with the Housing Element Law. We also note that after judgment was entered in the trial court, the Legislature enacted Assembly Bill No. 1886, which added section 65585.03 to the Government Code. This statute dictates when a housing element, or amendment to a housing element, is in substantial compliance with the Housing Element Law. These procedural issues are preserved for consideration below should they be relevant to further review of any amended or revised housing element. We also do not reach amicus curiae’s argument that the City’s housing element does not affirmatively further fair housing, as required by sections 65583, subdivision (c)(1) and 8899.50, subdivision (a)(1). Because this issue was first raised by amicus curiae and not raised by New Commune, we decline to address it. (California Building Industry Assn. v. State Water Resources Control Bd. (2018) 4 Cal.5th 1032, 1048, fn. 12.) C-31 32 DISPOSITION The judgment is reversed. On remand, the trial court is directed to vacate its order denying New Commune’s petition and to issue in its place a writ of mandate compelling the City to revise its Sixth Cycle 2021–2029 Draft Housing Element consistent with this opinion. New Commune is entitled to recover its costs on appeal. CERTIFIED FOR PUBLICATION KLATCHKO, J.* We concur: EGERTON, Acting P. J. ADAMS, J. * Judge of the Riverside County Superior Court, assigned by the Chief Justice pursuant to article VI, section 6 of the California Constitution. C-32