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City of San Leandro Meeting Date: September 6, 2022 Ordinance Agenda Section:File Number:22-492 PUBLIC HEARINGS Agenda Number:12.b. TO:City Council FROM:Fran Robustelli City Manager BY:Andrew Mogensen TITLE:Consider a First Reading of an Ordinance Amending Sections 5.08.136 and 5.12.132 of the San Leandro Zoning Code to Extend by Two Years the Entitlements for Qualified Housing Projects SUMMARY AND RECOMMENDATION The Planning Commission and Staff recommend the City Council adopt an Ordinance amending the Zoning Code to automatically extend residential project entitlements issued after January 1, 2019 for two (2) years in order to grant additional time for construction to proceed and to prevent the expiration of entitlements for critically needed housing units. BACKGROUND Over the last few years, the City has approved entitlements for numerous residential development projects that, when combined, add up to over 2,000 potential new dwelling units. The entitlements for these residential projects include Conditional Use Permits and Site Plan Review. However, the ongoing economic impacts caused by the COVID-19 Pandemic and other economic factors have made it difficult for many of these projects to begin construction. While the strict health orders that halted constructed early in the pandemic are no longer in place, the COVID-19 Pandemic continues to impact the global supply chain. Various other factors, including labor shortages and rising interest rates, have also made it difficult for developers to obtain necessary financing. The San Leandro Zoning Code establishes various deadlines, typically two years after issuance, for applicants to obtain building permits for their approved entitlements, otherwise the entitlements will expire. Allowing the entitlements for the recently approved housing projects to expire will result in these projects ceasing and necessary residential units not being constructed. This will negatively impact San Leandro’s efforts to combat the ongoing housing crisis. The housing crisis has made it difficult for households across the income spectrum to find affordable housing to buy or rent. The proposed amendments to the Zoning Code will provide an automatic two-year extension to Conditional Use Permits and Site Plan Review entitlements for residential projects issued Page 1 City of San Leandro Printed on 8/31/2022