18.38.215  RESIDENTIAL USES OF MOTELS, COMMERCIAL AND OFFICE STRUCTURES.
   .010   Purpose. The purpose of this Section is to facilitate the conversion of existing motels, and other commercial and office structures, to Supportive, Transitional and Multiple-Family Housing for low-income persons, for a defined period of time or until a maximum unit threshold is achieved, by establishing the regulatory framework to achieve a high level of livability for residents and ensure compatibility with surrounding uses in support of City Council policies to develop a continuum of care that assists individuals in transitioning from homelessness and Emergency Shelters to Transitional and Supportive Housing.
   .020   Sunset Provisions. The following sunset provisions shall apply to all applications subject to this section.
      .0201   Expiration. The provisions of this Section 18.38.215 shall be inoperative, null and void three (3) years from the effective date of this Section or upon satisfaction of the maximum number of units dedicated to conversions of structures for residential use as Supportive Housing as prescribed in 18.38.215.040 below, whichever occurs first. The City Council shall have the authority to grant extensions to the expiration date.
      .0202   Exceptions. Applications submitted prior to the expiration date of this section and that have not been given a public hearing prior to the expiration date shall be allowed be processed in accordance with this section. This exception shall not apply if the maximum number of  dedicated to conversions for residential use as Supportive Housing, as prescribed in 18.38.215.040 below, is satisfied prior to the expiration date.
   .030   Permitted Zone. The conversion of a structure to a residential use shall only be allowed within the "C-G" General Commercial Zone, subject to the granting of a conditional use permit.
   .040   Maximum number of Supportive Housing units. Implementation of this Section 18.38.215 shall be limited to a maximum of three-hundred and three (303) Supportive Housing units citywide.
      .0401   Location and Distribution. The location and distribution of the Supportive Housing units shall be determined on a project-by-project basis by the City Council through a memorandum of understanding between the applicant and the City to ensure the equitable and appropriate distribution of units throughout the city in relation to other forms of Transitional Housing, Supportive Housing, Emergency Shelters and services offered to the intended target population of this Section 18.38.215.  The applicant shall enter into the memorandum of understanding with the City prior to the Planning Commission’s review of the conditional use permit application.
      .0402   Exceptions. If the City receives an application that brings the total number of Supportive Housing Units from a number below the maximum of three-hundred and three (303) Supportive Housing units citywide to a number of units above this threshold, that application will be considered for the full number of units proposed, subject to approval of the memorandum of understanding by the City Council and a conditional use permit by the Planning Commission.
   .050   Residential Density. The conversion of a structure to a residential use shall not be subject to any other otherwise applicable General Plan or zoning density requirements.
      .0501   Minimum and Maximum Density. In lieu of dwelling units per acre, a minimum of seven (7) residents and a maximum of one hundred (100) residents per acre shall be allowed.
      .0502   Minimum Number of Units.  The conversion of a structure to a residential use shall include a minimum of thirty (30) residential units on-site.
   .060   Procedure. The approval process for the conversion of a conversion of an existing motel, and other commercial and office structures, to Supportive, Transitional and Multiple-Family Housing for low-income persons shall be processed as follows:
      .0601   Conditional Use Permit. Conversion of existing motels, and other commercial and office structures, to Supportive, Transitional and Multiple-Family Housing for low-income persons shall be subject to the approval of a conditional use permit consistent with Chapter 18.66 (Conditional Use Permits). In addition to the required findings pursuant to Chapter 18.66 (Conditional Use Permits), the Planning Commission, or City Council on appeal, shall make a finding of fact, by resolution that:
         .01   The evidence presented shows that a request for residential conversion in accordance with this section meets all of the provisions of this section and achieves a high level of livability for residents and ensures compatibility with surrounding uses in support of City Council policies to address homelessness and find creative housing solutions.
         .02   At a minimum, the conversion must demonstrate the living units are of sufficient size and design to provide a quality living environment, and the project includes common recreation and community facilities such as, but not limited to, community rooms, community gardens, facilities for pets, barbeque areas, and active and passive recreation areas.
         .03   The evidence presented shows that the project site is reasonably accessible to necessary services, including grocery stores (ideally within one mile), transit stops (ideally within half mile), and medical facilities (ideally within one mile).
      .0602   Additional Approvals Required. The following shall be approved in substantial form concurrent with approval of the conditional use permit. Minor modifications may be approved administratively if they are deemed to be in substantial conformance:
         .01   Affordability Covenant pursuant to subsection 18.38.215.100.
         .02   Wrap Around Services Plan pursuant to subsection 18.38.215.110.
         .03   Marketing and Tenant Selection Plan pursuant to subsection 18.38.215.130.
         .04   Exterior Lighting Plan pursuant to subsection 18.38.215.160.
         .05   Facility Management Plan pursuant to subsection 18.38.215.170.
         .06   Parking Management Plan pursuant to subsection 18.38.215.180.
         .07   Communications Plan pursuant to subsection 18.38.215.190.
      .0603   Design Review. Applicants of proposed conversions for residential uses shall submit plans to the Planning and Building Department and Community and Economic Development Department for design review prior to Planning Commission review of a conditional use permit for the project.
      .0604   Housing Authority Agreement. To ensure proper development and operation of Supportive Housing units in accordance with the purpose and intent of this section, all applicants of proposed residential conversions projects pursuant to this section shall enter into a written agreement with the City of Anaheim Housing Authority acknowledging the requirements of this section. A draft agreement in substantial form shall be required prior to approval of a conditional use permit.
         .01   Both Departments will review project design, and seek to ensure compatibility of the conversion project to the existing neighborhood scale and character, and a high level of livability for residents, consistent with the General Plan Community Design Element and the City of Anaheim Affordable Housing Development Residential Design Guidelines.
         .02   Both Departments will make a recommendation regarding project design to the Planning Commission, for consideration in connection with the Commission's decision on the conditional use permit.
   .070   Supportive Housing Units. As a condition of the approval of any conditional use permit to allow conversions of hotels, and other commercial and office structures, for residential uses, and prior to issuance of building permits for projects, the property owner(s) shall agree to the following:
      .0701   Small Projects. For projects with seventy (70) total units or less, the number of units dedicated as Supportive Housing (as defined in subdivision (b) of Section 50675.14 of the Health and Safety Code) shall be fifty percent (50%) or more of the total units and offered to persons with incomes of up to sixty percent (60%) of area median income.
      .0702   Large Projects. For projects with more than seventy (70) total units, the number of units dedicated as Supportive Housing (as defined in subdivision (b) of Section 50675.14 of the Health and Safety Code) shall be established and approved by the Community and Economic Development Department.
      .0703   Affordability Mix. The affordability targeting/mix for all projects shall be dictated by the affordable housing funding program requirements and approved by the Community and Economic Development Department pursuant to a written agreement and the affordability covenants required in subsection 18.38.215.100.
         .01   The term “Extremely Low Income Households,” as used in this section shall mean households having an income not exceeding thirty percent (30%) of the median family income, adjusted for family size.
         .02   The term “Very Low Income Households,” as used in this section shall mean households having an income not exceeding fifty percent (50%) of the median family income, adjusted for family size.
         .03   The term “Low Income Households,” as used in this section shall mean households having an income not exceeding sixty percent (60%) of the median family income, adjusted for family size.
   .080   Transitional Housing and Multiple-Family Housing. Conversions of motel, office and commercial structures to Transitional Housing and Multiple-Family Housing shall only be allowed when in conjunction with Supportive Housing in accordance Section 18.38.215.070. Projects with only Transitional Housing and/or Multiple-Family Housing without Supportive Housing shall be prohibited.
   .090   Maximum Rents. Affordable maximum rents shall be determined by the applicable affordable housing funding programs.  To the extent of an inconsistency between or among the funding programs relating to affordable rent and other covenants or agreements applicable to the Project, the most restrictive covenants or agreement regarding the affordable rent for the housing units in the project shall prevail.
   .100   Affordability Covenants. The property owner(s) shall be required to execute and record affordability covenants with the City of Anaheim, agreeing to the requirements of this section.  The covenants shall be acceptable to, and approved by, the Community and Economic Development Department and the City Attorney's Office, and shall include, but need not be limited to, the following provisions:
      .1001   Identification of the affordable units.
      .1002   The initial rent for each unit.
      .1003   The method of calculating periodic rental increases.
      .1004   A minimum term of thirty (30) years on the control of rent for the housing units or other specified term as may be required as a result of project funding.
      .1005   The right of the Community and Economic Development Department to supply, or otherwise approve, the qualifications of the low income households who will rent the housing units.
      .1006   Any density bonus for which a developer may otherwise apply pursuant to Section 65915 of the California Government Code shall not be pursued in combination with the provisions of Section 18.38.215.
   .110   Wrap-Around Supportive Services Plan. Any proposal for conversion of a structure to a residential use shall be required to ensure appropriate on-site provisions of Wrap-Around Supportive Services (as defined in 18.38.100.1001) for the residents. The plan shall be acceptable to, and approved by, the Community and Economic Development Department.
      .1101   The term “Wrap-Around Supportive Services” shall mean a holistic program of support services provided as an ancillary use to Transitional and Supportive Housing to stabilize an individual or a family. The services can be provided in a collaborative manner by a number of organizations and commonly include services related to mental health, counseling, medical care, drug rehabilitation, parenting, budgeting and life skills, and educational and job training.
      .1102   A minimum caseload of one (1) full-time employee per twenty (20) residents shall be provided.
      .1103   Supervision by case managers shall be detailed as part of the project’s operations plan and subject to the approval of the Community and Economic Development Department.
      .1104   The standards are a minimum level of services and additional hours of service and enhanced levels of service are encouraged beyond these requirements.
   .120   Anaheim Preference. Offering and maintaining an Anaheim preference is a priority for the City. The following provisions shall apply to projects for conversion to residential uses under Section 18.38.215:
      .1201   At a minimum, for the purposes of admissions into an affordable unit within a conversion project, an Anaheim preference shall apply to the greater of a proportionate share of housing units at the site when there is a combination of funding sources, such as County sponsored funds.
      .1202   When Anaheim funding is the only or primary source of gap funding, a live/work preference shall apply to all assisted units. An applicant may qualify for an Anaheim preference if they live or work in Anaheim at the time of application.
      .1203   For applicants who are homeless at the time of application, an Anaheim preference may be granted if the applicant can demonstrate a connection to Anaheim as outlined in admissions guidelines established for the Anaheim Housing Choice Voucher (HCV) Program.
      .1204   For the purposes of this section, the application process begins upon receipt of a referral to an open unit, which includes an imminent opening at the property that an applicant is considering. An applicant must be able to demonstrate an Anaheim connection in order to be eligible for a preference at the time of referral.
      .1205   The Anaheim preference shall be memorialized as part of the Affordability Covenant pursuant to section 18.38.215.100.
   .130   Marketing and Tenant Selection Plan. Applicants shall comply with an affirmative marketing plan approved by Community and Economic Development Department. The marketing plan shall include the following:
      .1301   Methods for informing the public and potential tenants about the federal fair housing laws.
      .1302   Procedures to inform and solicit applications from persons in the housing market area not likely to apply for tenancy at the housing units without special outreach.
      .1303   Recordkeeping methods that will permit the Community and Economic Development Department to evaluate the actions taken by the Property Manager to affirmatively market the housing units at the project.
      .1304   Specific procedures for marketing and releasing housing units shall be approved by the Community and Economic Development Department.
   .140   Occupancy Limits.  The maximum occupancy of the housing units in a project shall conform to the following provisions:
      .1401   For studio units, the maximum occupancy shall not exceed one (1) person.
      .1402   For one (1) bedroom units, the maximum occupancy shall not exceed three (3) persons.
      .1403   If needed, as a reasonable accommodation and subject to on-site management approval, one additional person may be allowed to be part of the household.  The conditions for such expectations shall be further defined in the property’s Marketing and Tenant Selection plan required by subsection 18.38.215.130.
   .150   Development Standards. The conversion of a structure to a residential use shall comply with the development standards in Table 38-B.
 
Table 38-B: Development Standards
Minimum Floor Area
Studio units: 275 square feet
One-bedroom units: 400 square feet
Minimum Size of Recreational-Leisure Areas
200 square feet for each dwelling unit including indoor and outdoor common areas; a common kitchen/dining area shall be included as part of this requirement
Storage Areas
General storage cabinets with a minimum size of 100 cubic feet capacity shall be required for each dwelling unit, and may be provided adjacent to private recreational-leisure areas or located in close proximity to the unit
Parking and Loading
Requires Parking Demand Study pursuant to paragraph 18.42.040.010.0108 and a Parking Management Plan pursuant to subsection 18.38.215.180
 
      .1501   Development standards related to the existing lots and building footprints, including lot width, structural setbacks, structural height, site coverage, and lot area, shall not apply.
      .1502   With the exception of 18.38.215.150.1501 and Table 38-B, all other development standards of the “C-G” General Commercial Zone shall apply.
      .1503   Applicants of conversion projects for existing structures shall not be required to bring said structures into conformance with the Zoning Code. New construction associated with a conversion projects shall be required to meet all applicable development standards of the "C-G" General Commercial Zone.
   .160   Exterior Lighting Plan.  An exterior lighting plan shall be provided for the entire outdoor area of the site and shall be subject to review and approval by the Planning and Building and Police Departments.
   .170   Facility Management Plan.  A facility management plan shall be submitted for review and approval by the Planning and Building Director, Community and Economic Development Director and Police Chief, or their designee, prior to the operation of the residential use. The management plan may be required to address additional specific needs and shall remain active throughout the life of the use. The management plan shall include, at a minimum, the following:
      .1701   A detailed plan and strategy for the long term operation, maintenance, repair, security, social/supportive services, marketing of the project, method of selection of tenants, rules and regulations for tenants, and other rental and operational policies for the project.
      .1702   Measures regarding off-site controls to minimize the congregation of clients in the vicinity of the use.
      .1703   A system for monitoring of outdoor areas to minimize disruption to nearby land uses.
      .1704   A required on-site manager along with a detailed description of the manager’s duties and responsibilities to ensure the proper and orderly operation of the facility in a manner that serves the needs of residents, staff, and service providers while minimizing potential impacts on surrounding uses.
   .180   Parking Management Plan.  A parking management plan shall be provided for approval by the Planning and Building Director and shall include the following:
      .1801   Parking spaces shall be made available for tenants of the housing units, their guests and employees in accordance with the Municipal Code requirements and as stipulated in the approved parking management plan.
      .1802   The parking management plan shall include a map depicting open and reserved parking spaces, and procedures for removal of inoperable vehicles.
   .190   Communications Plan.  A Communication and Outreach Plan shall be developed, subject to approval by the Community and Economic Development Director, to maintain good communication and response to operational issues which may arise from the neighborhood, City staff, or the general public. 
(Ord. 6465 § 2; June 4, 2019:  Ord. 6483 § 8; June 9, 2020.)