Chapter 18.39

HOUSING OPPORTUNITY OVERLAY (HO-O) ZONE

The housing opportunity overlay (HO-O) zone is intended to:

• A. Establish a ministerial and streamlined approval process, subject to the city’s objective design standards, for housing projects.

• B. Provide an overlay zoning district to be applied to sites that may include, but are not limited to, the potential sites identified as inventoried in the housing element of the general plan as potential sites for housing, as part of the implementation of the housing element goals, policies, and programs, or where it can be reasonably demonstrated that the rezoning of the site is necessary to meet the goals of the Regional Housing Needs Allocation (RHNA) of the 2021 – 2029 Housing Element.

• C. Provide for the continuation of the ability to develop property with land uses permitted by the existing base (underlying) zoning of a property unless the property is developed for residential uses in accordance with the HO-O zone.

• D. Provide a means of achieving the residential housing objectives of the housing element of the general plan, particularly by encouraging new multifamily residential development that includes affordable housing, housing persons with disabilities, housing for persons with developmental disabilities, and housing that supports aging in place.

• (Ord. 766 § 2 (Att. A), 2025)

The housing opportunity overlay zone applies to Site 3 (APNs: 7538-027-009 and 7538-027-010) as shown on Figure III-1 of the 2021 – 2029 Housing Element. (Ord. 766 § 2 (Att. A), 2025)

For purposes of this chapter, the terms below have the following meanings:

• A. “Affordable qualifying HO-O projects” or “qualifying affordable housing projects” means a project where at least twenty percent of the total residential dwelling units are reserved for very low- or lowincome persons for the area median family income (AMI) as defined according to the State Housing and Community Development (HCD) Income Guidelines, updated annually.

• B. “Ministerial” means an act or duty that is prescribed by law and performed without personal judgment or discretion. It can also refer to a governmental decision that involves no personal judgment by a public official. No public notice or public hearing is required for a ministerial action. By definition, ministerial actions are exempt from California Environmental Quality Act (CEQA) review.

• C. “Objective design standards” means development standards that involve no personal or subjective judgment by a public official and that are uniformly verifiable by reference to an external and uniform benchmark or criterion that is available and knowable by both the

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City of Palos Verdes Estates, CA

ZONING REGULATIONS

§ 18.39.030

§ 18.39.060

development applicant and public official at the time of submittal. (Ord. 766 § 2 (Att. A), 2025)

• A. Residential Density.

  1. The housing opportunity overlay (HO-O) zone is intended for a range of multifamily, multi-level structures with a density range of twenty to twenty-five dwelling units an acre.

  2. The HO-O prohibits single-family detached dwellings.

  3. Twenty dwelling units an acre is the minimum density and is intended to encourage flexibility in dwelling-unit densities and types of structures providing a diversity of dwelling-unit types.

  4. The allowed number of dwelling units is calculated multiplying the total site area by the maximum units allowed per gross acre and rounding up to the nearest whole number.

• B. Density Bonus. The densities noted above may be increased for affordable projects in accordance with Chapter 18.68 PVEMC, Density Bonuses, and the state Density Bonus Law.

• (Ord. 766 § 2 (Att. A), 2025)

• A. The provisions of this chapter apply to all properties designated with the HO-O zone. If there is any conflict between the terms of this chapter and those of the underlying base zone for a project that is developed under the HO-O, the provisions of this chapter govern.

• B. Regulations, development standards, and requirements in the underlying base zone continue to apply to those projects that were developed under the base-zone standards.

• C. For those properties with legal nonconforming uses (i.e., that do not comply with the provisions of the base zone or the provisions of this chapter), the regulations, development standards, and requirements in Chapter 17.16 PVEMC, Nonconformity, apply.

• (Ord. 766 § 2 (Att. A), 2025)

• A. No lot, premises, building, or portion thereof in the HO-O zone may be used for any purpose except for the following:

  1. Primary uses that are permitted in the underlying zone that meet the objective development standards of the underlying zone and HO-O zone.

  2. Accessory uses that are permitted in the underlying zone that meet the objective standards of the underlying zone and the HO-O zone.

  3. Uses that are prohibited in the underlying zone are prohibited in the HO-O zone including, but not limited to:

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City of Palos Verdes Estates, CA § 18.39.060

PALOS VERDES ESTATES CODE

§ 18.39.080

• a. Single-family detached dwelling units.

• b. Commercial cannabis activity, as that term is defined in Chapter 18.73 PVEMC. Notwithstanding the foregoing, this section does not apply to the delivery of medical marijuana or medical marijuana products to qualified patients.

• c. Cultivation of cannabis or medical marijuana, as those terms are defined in Chapter 18.73 PVEMC. This section does not apply to personal marijuana cultivation, as that term is defined in Chapter 18.73 PVEMC and subject to the conditions in PVEMC § 18.73.070.

• d. Short-term or vacation rentals.

• e. Short-term or vacation rental advertisement. No person or entity may maintain any advertisement of a rental prohibited by this chapter.

B. Multifamily residential uses are the principal uses allowed in the HO-O zone. (Ord. 766 § 2 (Att. A), 2025)

• A. A project with twenty percent of the units restricted to be affordable to lower income households qualifies for the following incentives:

  1. Ministerial review – No discretionary review is required for qualifying HO-O projects.

  2. Deferred impact fees – A qualifying HO-O project is eligible for one of the following impactfee deferrals, at the election of the applicant (which election must be made as part of the project application). Deferral options include:

     • a. Payment of impact fees before issuance of a certificate of occupancy.

     • b. Payment of impact fees within twelve months after the certificate of occupancy of the first unit.

  3. Expedited plan reviews – Plans for qualifying affordable projects will have a one-day reduction in review time: The city will complete its initial review in nine business days (instead of ten), and it will complete subsequent reviews in four business days (instead of five).

B. HO-O projects may qualify for density-bonus benefits under state law. (Ord. 766 § 2 (Att. A), 2025)

• A. Projects in the HO-O zone must comply with the development standards in this chapter and with the city’s adopted objective design standards.

• B. The following standards apply to the HO-O zone:

  1. Unit Sizes. The minimum unit sizes are:

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City of Palos Verdes Estates, CA

ZONING REGULATIONS

§ 18.39.080

§ 18.39.080

• a. Six hundred fifty square feet for a studio or one-bedroom unit;

• b. Seven hundred fifty square feet for a two-bedroom unit; and

• c. One thousand square feet for a unit with three or more bedrooms.

2. Setbacks.

   • a. Front yard: ten feet;

   • b. Side yard: five feet;

   • c. Rear yard: ten feet;

   • d. Notwithstanding the above, where a common wall or party wall exists (e.g., townhomes): zero feet.

• Building Height and Stories.

• a. Maximum building height: thirty-five feet. Building height is measured as set forth in PVEMC § 17.08.070.

• b. Maximum number of stories: three.

4. Floor Area Ratio. The maximum floor area ratio is 1:1. Floor area ratio is calculated by dividing the total gross floor area of a building by the total area of the lot.

5. Minimum lot area per primary dwelling unit: two thousand one hundred seventy-eight square feet.

6. Maximum Lot Coverage. No more than sixty-five percent of the total lot area may be covered with a structure, paving, or any other permeable surface.

7. Minimum Lot Width. Each lot must be at least sixty feet wide, except that the lot may be as small as twenty feet wide if each lot is developed with an attached single-family dwelling, such as a townhome.

8. Landscaping and Open Space Standards. Landscaping and open space must be developed in accordance with the city’s objective design standards.

• Off-Street Parking.

• a. Unless state law requires fewer spaces, each HO-O project must include at least:

  • (1) One space for a studio;

  • (2) One and one-half spaces for a one bedroom;

  • (3) Two spaces for a two bedroom; and

  • (4) Two and one-half spaces for a three bedroom.

• b. Required parking spaces may only be utilized for the parking of motor vehicles belonging to the occupants of and visitors to the building.

• c. No required parking space may be utilized for the purpose of storing commercial

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City of Palos Verdes Estates, CA § 18.39.080

PALOS VERDES ESTATES CODE

§ 18.39.110

vehicles, recreational vehicles, boats, equipment, materials, or anything not specifically permitted in the HO-O zone.

  - d. The number of required spaces is rounded up to the nearest whole number on a project-wide basis. 

10. Utilities, Building Equipment, and Trash Enclosures. Utilities, building equipment and trash enclosures must be developed in accordance with the city’s objective design standards.

• (Ord. 766 § 2 (Att. A), 2025)

• A. Qualifying affordable projects that comply with the requirements of this chapter are permitted by right as a use. Compliance with the requirements of this chapter does not, however, waive any additional requirements for compliance with requirements of the city’s municipal code. For example, if an applicant requires approval of a lot line adjustment, merger of parcels, or subdivision in conjunction with approval of an application under this chapter, a separate application must be made for the other approval in accordance with this code.

• B. Approving Body. The community development director or the director’s designee administratively approves or denies a ministerial application for a project under the HO-O zone.

• C. Notice of Decision. Within ten days of the decision, a notice of decision must be mailed to both the applicant and the applicant’s representative and to any person who has made a written request for a copy of the decision. The decision of the community development director is final and conclusive.

• D. Expiration of Administrative Approval. Construction must start within one year after the date of the approval by the community development director, or the approval becomes null and void.

• (Ord. 766 § 2 (Att. A), 2025)

• A. Affordable housing units developed under this chapter must remain available to persons and families of very low and low income, at an affordable housing cost or affordable rental cost, at those income and affordability levels as defined in this code, for fifty-five years.

• B. The required period of affordability runs concurrently with any period of affordability required by any other agency; provided, however, that the affordability period is fifty-five years or longer.

• C. The project developer and property owner must enter into an appropriate agreement with the city to ensure that affordability is maintained for the required period. The regulatory agreement and affordability covenant must be approved by the city attorney.

• (Ord. 766 § 2 (Att. A), 2025)

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City of Palos Verdes Estates, CA

ZONING REGULATIONS

§ 18.39.110

§ 18.39.110

• A. Before submitting an application for a housing development within the HO-O zone, the applicant or prospective developer has the option to request an informal pre-submittal consultation with the community development department and other city staff as appropriate to obtain information and guidance before incurring substantial expense in the preparation of plans, surveys and other data.

• B. An informal pre-submittal application under this section requires a deposit and reimbursement agreement to pay for the city’s actual expenses, including staff time and overhead.

• C. A pre-submittal consultation is not required, but it is strongly encouraged. No information shared for a pre-submittal consultation triggers any deadline under the Permit Streamlining Act or any other law.

• (Ord. 766 § 2 (Att. A), 2025)

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City of Palos Verdes Estates, CA

ZONING REGULATIONS

§ 18.40.010

§ 18.40.030