City Council

11. LIMITED WAIVER OF VESTED RIGHTS PURSUANT TO DEVELOPMENT AGREEMENT (DA) 2023-0002 On November 21, 2023, the City Council approved DA 2023-0002 in conjunction with a proposed development of 42 residential units including seven (7) live-work units and 35 residential condominium units, with two (2) units being affordable to very-low income households, at 14042 Newport Avenue. The development is located in the Downtown Commercial Core Specific Plan (DCCSP). As required by Tustin City Code (TCC), the proposed 6/14/24, 2:23 PM Regular Meeting of the City Council/Closed Session-5:30 pm/Regular Meeting-7:00 pm development must include affordable housing on-site and payment of in- lieu fee for one-half of the base units provided on-site. On March 5, 2024, the City Council adopted a policy to temporarily suspend the requirement to pay an affordable housing in-lieu fee in conjunction with development proposals in the DCCSP and Red Hill Avenue Specific Plan (RHASP) for 36 months. KB HOME Cal Management Services LLC (KB Home) is requesting a limited waiver of vested rights pursuant to DA 2023-0002 to retroactively apply the suspension of the requirement to pay an affordable housing in-lieu fee to their project. Recommendation: It is recommended that the City Council grant KB Home a limited waiver of vested rights pursuant to DA 2023-0002 and determine that the current suspension of affordable housing in-lieu fees for residential projects within the DCCSP and RHASP is retroactively applicable to the project associated with DA 2023-0002.