Chapter 21.46 — TRANSFER OF DEVELOPMENT RIGHTS

This chapter provides procedures for the transfer of development rights from a property to one or more other properties within the same statistical area. (Ord. 2022-28 § 2, 2022)

The provisions of this chapter shall apply within all coastal zoning districts. (Ord. 2022-28 § 2, 2022)

A. Floor Area for a Donor Site. The maximum gross floor area allowed on a donor site shall be reduced by the amount of the transfer of development intensity to the receiving site.

B. Residential Uses. When the transfer of development rights involves residential units, the
transfer shall be on a unit-for-unit basis.

C. Prohibited Areas. Except for statistical area L1-Newport Center, the transfer of
development rights from a donor site outside the coastal zone to a receiver site within the
coastal zone is prohibited. The transfer of development rights from a site with a visitor
serving commercial (CV) coastal zoning district designation to a non-CV coastal zoning
district shall be prohibited. The transfer of development rights from a site with a CV coastal
zoning district designation to any area outside of the coastal zone is prohibited.
(Ord. 2022-28 § 2, 2022)

The following procedure shall be used for the transfer of development rights:

A. Application. The applicant shall submit a coastal development permit application to the
Department that identifies the quantity of development (e.g., residential units, floor area,
hotel rooms, theater seats, etc.) to be relocated and the donor and receiving site(s). If the
requested transfer includes the conversion of nonresidential uses, the application shall also
identify the quantity of entitlement, by use category, before and after the transfer. The
Coastal Development Permit shall be processed in accordance with Chapters 21.50 and
21.52.

B. Traffic Analysis. The City Traffic Engineer shall perform a traffic analysis to determine the
total number of p.m. peak-hour trips that would be generated by development allowed with
and without the transfer. Trip generation rates shall be based on standard trip generation
values in the current version of the Institute of Traffic Engineers “Trip Generation,” unless
the City Traffic Engineer determines that other rates are more valid for the uses involved
in the transfer.

C. Detailed Traffic Analysis. Depending on the location of the donor and receiving site(s), the
City Traffic Engineer may determine that a more detailed traffic analysis is required to
determine whether adverse traffic impacts will result from the transfer. This analysis shall

Downloaded from https://ecode360.com/NE4559 on 2026-09-25

City of Newport Beach, CA § 21.46.040 NEWPORT BEACH CODE § 21.46.050

demonstrate whether allowed development, with and without the transfer, would either
cause or make worse an unsatisfactory level of service at any primary intersections for
which there is no feasible mitigation.

D. Land Use Intensity Analysis. If the transfer request involves the conversion of uses, the
Director shall perform a land use intensity analysis to determine the floor area that could
be developed with and without the transfer.

E. Council to Consider. Applications for transfer of development rights shall be considered by
the Commission with a recommendation to the Council. The Council may approve a
transfer of development rights only if it makes all of the findings in Section 21.46.050.

F. Legal Assurances. A covenant or other legally binding agreement approved by the City
Attorney shall be recorded against the donor site assuring that all of the requirements of the
transfer of development rights will be met by the current and future property owners.
(Ord. 2022-28 § 2, 2022)

When approving a coastal development permit authorizing a transfer of development rights within Newport Center (Section 21.80.010, Map A-15), the Council shall only make findings set forth in subsection (B) and (E) of this section. In all other areas, the Council shall make all of the following findings:

A. The reduced density/intensity on the donor site provides benefits to the public, in
furtherance of the provisions of the LCP, in one of the following ways:

1. The provision of extraordinary open space, area(s) for new or expanded habitat
restoration, public view corridor(s), public coastal access, increase parking, or other
visitor-serving amenities, in addition to what is already required by the LCP;

2. Preservation of natural resources, a historic building, or a property with special
character-defining features that contribute to the visual qualities and special
community character of areas such as Balboa Village or McFadden Square, that,
because of their unique characteristics are popular visitor-serving areas;

3. Improvement of the area’s scale and development character;

4. Reduction of local vehicle trips and traffic congestion;

5. More efficient use of land, such as consolidation of lots to achieve a greater visitor-
serving use, or a better architectural design than could be achieved without lot
consolidation;

6. Dedication or use of existing or proposed private parking lots for public use/access to
the coast;

7. Preservation of marine-dependent uses and industries such as shipyards and boat
storage facilities; and

8. Incentivization of planned retreat and dedication of open space as an adaptive strategy
for coastal hazard risks, such as sea level rise.

B. The transfer of development rights will not result in any adverse traffic impacts and would

Downloaded from https://ecode360.com/NE4559 on 2026-09-25

City of Newport Beach, CA § 21.46.050 LOCAL COASTAL PROGRAM IMPLEMENTATION § 21.46.050

not result in greater intensity than development allowed without the transfer, and the proposed uses and physical improvements would not lend themselves to conversion to higher traffic generating uses;

C. The increased development potential transferred to the receiving site will be compatible and in scale with surrounding development and will not create abrupt changes in scale or character;

D. The receiving site is physically suitable for the development proposed taking into consideration adjacent circulation patterns, protection of significant public views and open space, and site characteristics, including coastal hazard risks, any slopes, submerged areas, and sensitive resources; and

E. The transfer of development rights decision is consistent with the Coastal Land Use Plan and does not result in any significant adverse impacts to public access, public views, sensitive coastal resources, or “sensitive coastal resource areas.” (Ord. 2022-28 § 2, 2022)

Downloaded from https://ecode360.com/NE4559 on 2026-09-25

City of Newport Beach, CA

Part 4

Standards For Specific Land Uses