Friends for a Livable Fullerton (FFLF) met with residents on November 7th at the Fox Fullerton Theater to discuss the Housing Element Update (HEU) and the Housing Incentive Overlay Zone (HIOZ), which the City will vote on November 19th.

The program proposes nearly 30,000 new housing units to meet a state requirement of 13,209 units over five years, with almost 3,000 units already in development. While the state mandate aims to increase affordable housing, only fewer than 7,500 units are required to be affordable, with 5,751 designated for luxury housing.

Several parcels were removed from the proposal to retain businesses that generated the most revenue for the City. As the new figures are somewhat lower than the levels recommended by the Planning Commission during their meetings on September 25th and the special meeting on November 6th, the program has been renamed “Modified Alternative 2.” If adopted, the new program is expected to add over 85,000 people to the City (current population of 143,617) while losing 4,179 net jobs.

The City Council will hold a public hearing to consider:
• To certify HIOZ Environmental Impact Report (SCH# 2023090133) as per Alternative 2 (Reduced Sites Alternative)
• To approve a General Plan (GP) Revision to adopt the Housing Element and related revisions to the Fullerton Plan in Chapter 2.
• To approve a Zoning Ordinance Amendment to the Municipal Code to establish HIOZ standards and identify related parcels on the Zoning Map.

Even if you don’t speak, please attend and/or reach out to your City Council members.

Historic Self Realization Fellowship Church near City Pointe

The Housing Element and Housing Incentive Overlay Zone (HIOZ) are managed by the state of California’s Housing and Community Development Department (HCD) and the Southern California Association of Governments (SCAG). HCD aims to increase affordable housing, a goal supported by the Fullerton Future Land Use Framework (FFLF).

HCD and SCAG evaluate housing needs for each city and set specific allocations based on factors like past performance, current population, and existing affordable housing stock.

While Fullerton successfully meets its luxury housing goals, it struggles to provide sufficient lower-income housing. Luxury units often require no subsidies, allowing cities to meet high-end property requirements but falling short on affordable options. To comply with state regulations, the city must meet overall housing requirements as well as specific targets for each affordability level.

In California, there are three categories for low-income housing affordability, which are based on different percentages of the Area Median Income (AMI).

The AMI for Orange County, California, in 2024 is $90,400, an increase from $85,700 in 2023. The categories are as follows:
• Extremely low-income: Below 30% of the AMI
• Very low-income: 30–50% of the AMI
• Low-income: 50–80% of the AMI

Most for-profit builders cannot create 100% affordable housing. Fullerton city staff suggests requiring 10% of units as affordable to qualify for the Housing Incentives and Opportunities Zone (HIOZ), which is generally acceptable to developers. However, FFLF spokesperson Jane Reifer reports that some local developers are willing to provide 15% affordable housing. The FFLF advocates for this higher percentage, as it would reduce overall housing needs by 30% while minimizing the impact on the city and preserving quality of life.

Reifer said, “We want to see affordable housing. We are saddened to see how much housing prices in Fullerton have gone up and up to the point where many people cannot afford to live here anymore.”

Building Height Comparison

The group is concerned that HIOZ will lead to increased land values and speculation, resulting in gentrification that raises rental prices and makes homeownership less attainable. Once approved, zoning changes cannot be reversed due to state “no net loss” rules unless voters repeal those laws.
The City of Fullerton, like all cities, has a general plan that includes a Housing Element, which must be updated every eight years. Fullerton is currently behind on this update, a common issue among California cities due to strict new requirements.

Failure to comply risks losing control over development and could lead to significant monthly fines. Recently, the California Association of Realtors filed a lawsuit against Fullerton through its nonprofit arm, Californians for Home Ownership, in partnership with the Housing and Community Development Department (HCD) to ensure the city prepares its Housing Element as mandated.

Starting in February, if the City does not adopt the general plan, it will face monthly fines ranging from $50,000 to $100,000, and it will be barred from controlling building permits. Meanwhile, developers are already beginning projects in Fullerton by using a concept called “Builders Remedy,” which allows them to bypass city zoning regulations.

Originally, there were concerns that the City Council would need to pass this plan during their late November meeting to avoid severe consequences. However, the current agenda now lists new options that include adopting only the Housing Inventory Overlay Zones (HIOZ) parcels, which comprise 235 parcels, while postponing additional parcels for consideration at a later date.

If the HIOZ is approved, future housing projects will be streamlined and allowed “by right “with a simple over-the-counter process unless the project somehow exceeds the very generous size, height, and setback requirements.

“You will no longer have a say if an eight-story apartment building is built next to your home. Only buildings larger than what the City has determined to be larger or more impactful than what the City is saying are the current standards will go through a public process,” said Reifer.

FFLF is concerned that many projects might be approved without proper public oversight, as no Historic Resources report was included in the program’s Environmental Impact Report (EIR). Although the HIOZ parcels were screened for historic buildings, most historic resources in Fullerton have not been designated, raising the risk of these being overlooked. Adjacent historical resources and preservation overlay zones were also not analyzed.

The analysis of Traffic Level of Service impacts will now occur as projects are presented, rather than through a comprehensive study reviewed by the Planning Commission. FFLF is worried about potential impacts on creeks, scenic corridors, and parks, as new public parks are proposed within the common open spaces of HIOZ projects, accessible from 8 AM to 8 PM.

Additionally, Appendix D to the EIR noted that fire and police response times would increase significantly without additional funding to support the larger service population.

FFLF’s mission is to influence development decisions in a way that promotes Fullerton’s uniqueness and livability. They believe in and often support affordable housing projects but feel that this program will neither provide the necessary affordable units nor help retain what is unique about Fullerton’s built and natural environments and does not address numerous impacts on Fullerton’s public services, infrastructure, and quality of life. FFLF’s HEU/HIOZ platform is:
• Avoid over-compliance; once parcels are identified, project approvals for those lots will no longer have public oversight.
• Remove the historic Chapman and Commonwealth corridors from consideration.
• Protect existing multifamily housing, historic neighborhoods, and scenic corridors.
• Shift the emphasis on high-rise developments to the Harbor Blvd and Orangethorpe Ave area.
• Increase affordability requirements from 10% to 15%, as many other cities like Brea and Irvine have done.
• Impose reasonable setbacks, stepbacks, and height limits on new developments.
• Conduct studies on the significant impacts on Fire, Parks, Traffic, Historic Resources, and the City’s Scenic Corridor before project approvals.

Attend the City Council meeting at 5:30pm Tuesday, November 19th
303 West Commonwealth Ave
For Zoom Go To: www.zoom.us/join Enter Meeting ID: 978 4219 1797

For more FFLF Information: www.SaveFullerton.com/Housing
For more City information: https://www.cityoffullerton.com/government/departments/community-and-economic-development/planning-zoning/2021-2029-housing-element-updates