DECEMBER 1, 2016 PLANNING COMMISSION PUBLIC HEARING

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PLANNING COMMISSION PUBLIC HEARING DECEMBER 1, 2016 SUBJECT: REQUEST TO DEMOLISH SIX UNITS AND CONSTRUCT A NEW, THREE-STORY, 11-UNIT MUL Tl-FAMILY COURTYARD BUILDING OVER SUBTERRANEAN PARKING AT 1016 MARTEL AVENUE INITIATED BY: DEPARTMENT OF COMMUNITY DEVELOPMENT (David J. DeGrazia, Planning Manager, CHPP) (Jennifer Alkire, AICP, Senior Planner) (Laurie Yelton, Associate Planner) STATEMENT ON THE SUBJECT The proposal is a request to demolish six units in order to construct a new, threestory, 18, 150-square-foot, 11-unit multi-family apartment courtyard building over subterranean parking. RECOMMENDATION Staff recommends that the Commission hold a public hearing, consider all pertinent testimony, and approve the request subject to the conditions in Draft Resolution PC 16-1179: 1) Draft Resolution No. PC 16-1179: ''A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF WEST HOLLYWOOD, CONDITIONALLY APPROVING A DEMOLITION PERMIT, DEVELOPMENT PERMIT, AND A LOT LINE ADJUSTMENT FOR THE DEMOLITION OF SIX DWELLING UNITS AND THE CONSTRUCTION OF A NEW, THREE-STORY, ELEVEN-UNIT MULTI-FAMILY COURTYARD BUILDING OVER SUBTERRANEAN PARKING, LOCATED AT 1016 N. MARTEL AVENUE, WEST HOLLYWOOD, CALIFORNIA." (EXHIBIT A) EXECUTIVE SUMMARY This project proposes to demolish six dwelling units on three contiguous parcels and construct a new, three-story, 11-unit, apartment building (all market rate units) over subterranean parking. The site is approximately 14,010 square feet and is zoned R3B (Residential, Multi-Family Medium-Density).The multi-family dwelling complies with the standards for residential districts, multi-family dwellings, courtyard housing, and general development standards. The design is exemplary and is consistent with the massing of the neighboring dwelling units and those in the surrounding neighborhood. The applicant is requesting three courtyard housing incentives, and three 10% modifications to the proposed project. Page 1of14 ITEM 10.A.

The three courtyard housing incentives requested are: 1.) to allow a maximum of 50% compact parking spaces, 2.) to allow the building to extend into the front yard setback, and 3.) to allow the building to extend into the rear yard setback. The three modifications requested are: 1.) to reduce the entire front yard setback by 10%, 2.) to reduce the entire rear yard setback by 10%, and 3.) to increase the maximum allowable unit size 10% from 1,500 square feet to 1,650 square feet. Additionally, the building qualifies for exemplary design per Section 19.06.040 of the WHMC, which exempts the building from the 6'-0" step-back on the front of the building on the second and third floors. Overall, the proposed project meets the general plan goals and the multi-family development standards, is well-suited for ~he subject site, is thoughtfully designed, and is complementary to the context of the neighborhood. Therefore, staff recommends approval of this project. BACKGROUND Application Information A. Date of Application: B. Application Deemed Complete C. Applicant: D. Property Owner: E. Location: F. Zoning I General Plan: December 1, 2015 July 22, 2016 Jeff Seymour, Seymour Consulting Group Martel Dup LLC., Martel Sak LLC., Neman Assets LLC 1016 Martel Avenue and 7339 & 7349 Romaine Street R3B (Residential, Multi-Family Medium Density) I R3 Page 2 of 14

G. Environmental Status: H. Public Notices: Categorically Exempt per CEQA Section 15332 (In-fill Development Projects) The public hearing was advertised and noticed in accordance with the W.H.M.C. Section 19.74.020. Site and Area Conditions The subject site is located on the east side of Martel Avenue on the corner of Romaine Street, and south of Santa Monica Boulevard. The site consists of three contiguous lots. The southernmost parcels are located at 7339 & 7349 Romaine Street and the northernmost parcel is located at 1016 Martel Avenue. Each of the three sites is developed with two units. Through the lot line adjustment process, the project site will be given the unified address of 1016 Martel Avenue. The project site is approximately 100 feet in width along Martel Avenue and 140 feet in length along Romaine Street for a total lot size of approximately 14,010 square feet (.32 acres). Page 3of14

This portion of Martel Avenue, north of Romaine Street, is developed with a wide variety multi-family and single-family residential dwellings of various stories as well as a 29,000-square-foot commercial building to the east, and adjacent to the subject site on the corner of Romaine Street and Fuller Avenue. In addition, there is a large, two-story multi-family residential building south of the project site across Romaine Street as well as a 55-unit apartment building south-west of the subject property at the corner of Romaine Street and Martel Avenue. Romaine Street divides the City of West Hollywood to the north and the City of Los Angeles to the south. - Zoned R3B (Residential, Multi-Family Medium Density) - To the north North of the subject site is a single-story, single-family dwelling. This site, if developed, could have a minim!jm of five units. City of Los Angeles - To the south of the subject site is a two-story, South. multi-family building and the Poinsettia Recreation Center as well as a park across Romaine Street. Zoned CC2 (Commercial, Community 2) - To the east of the subject East site, on the corner of Romaine Street and Fuller Avenue, is a two-story, 29,000-square-foot commercial building (Quixote Production Studios). West Zoned R3B (Residential, Multi-Family Medium Density) - To the west I of the subject site are a mix of single-family and multi-family residential buildings. Environmental Review The proposed project is categorically exempt from the CEQA requirement for preparation of environmental documents pursuant to Section 15332 (In-fill Development Projects) of the CEQA Guidelines since the project is 1) consistent with the general plan and zoning designation and regulations; 2) occurs within city limits on a project site of no more than five acres substantially surrounded by urban uses; 3) the site has no value as habitat for endangered, rare, or threatened species; 4) approval would not result in any significant effects relating to traffic, noise, air quality, or water quality; and 5) the site can be adequately served by all required utilities and public services. The project is consistent with the applicable general plan designation and all applicable general plan policies as well as with applicable zoning designation and regulations. The proposed building has been designed within the standards set forth in the Zoning Ordinance. Approval of the project would not result in any significant effects relating to traffic, noise, air quality, or water quality. Page 4of14

Based on the City's threshold, a development that generates 500 or more daily trips or 60 or more net peak hour trips would have a measurable impact to streets. As proposed, the traffic associated with the development of 11 residential units replacing six dwelling units is anticipated to generate a net of 33 daily trips, 3 morning hour peak trips, and three afternoon peak hour trips. Therefore, based on the City's criteria, the project will not exceed the City's impact threshold and no further traffic analysis is required. The noise levels in the area would be affected on a temporary basis during construction, however an extensive construction period mitigation plan which aims to minimize noise intrusion and facilitate response to any problems encountered during construction. Long-term noise impacts are not anticipated as a result of this residential project, as the use is typical for a multi-family zone. Neighborhood Meeting On January 13, 2016, a neighborhood meeting was held at Plummer Park to present the project and discuss any concerns with the neighbors. The meeting was advertised by mailing to all residents and property owners within a 500-foot radius of the subject site. There were approximately 12 attendees at the meeting. The neighbors had concerns regarding privacy as well as the scale and massing of the building. There was an expressed desire to see additional modulation in order to reduce the perceived height of the building. Additionally, there were concerns about pedestrian and traffic congestion along Romaine Street. Since the neighborhood meeting, the project has been revised multiple times and has addressed the massing and privacy concerns including reducing terrace sizes, reducing the number and height of windows, and incorporating clerestory windows where possible. With the exception of the modification requests for a 10% reduction in the front and rear yard setbacks and the 10% increase in the maximum allowable unit size, the project meets all code requirements. Design Review Subcommittee Meeting The project was reviewed by the Planning Commission Design Review Subcommittee qn February 11, 2016. The Subcommittee responded positively to the design of the project, modulation of the building, and window projections of the building. They were favorable of the interior courtyard and the layout of the building. The Sub-Committee requested additional landscaping and screening to enhance privacy of the neighbors, which has been provided. Public Comment At the time the staff report was published, staff had received comments from an adjacent neighbor with regard to privacy, privacy screening between properties, and the trash/recycling location. Staff and the applicant worked with the neighbor to address all concerns: Planting of a 6' tall bamboo hedge along the northerly property line, the installation of a planter for tall screening plants, screening of the balconies along the north property line, and moving the trash/recycle location from the north side of the property to the sou~h side of the property along Romaine Street. Conditions 8.8 and 8.9 of the Draft Resolution addresses the neighbor's concerns. Page 5of14

ANALYSIS Project Proposal The request is to demolish six dwelling units on three contiguous parcels on the east side of Martel Avenue at the corner of Romaine Street and combine the three parcels into one large parcel through a lot line adjustment. The applicant is requesting three courtyard housing incentives, and three 10% modifications to the proposed project per Sections 19.60.040 and 19.36.265 of the West Hollywood Municipal Code (WHMC). The modifications and courtyard housing incentives are separate. The following modifications are being requested: Reduce the entire front yard setback by 10% (from 28'-6" to 25'-8"); Reduce the entire rear yard setback by 10% (from 15'-0" to 13'-6"); and Increase the maximum average unit size by 10% (from 1,500 sf to 1,650 sf). The following Courtyard Incentives are being requested: Provide nine of 27 parking spaces to be compact parking spaces (less than 50%); A projection of 7'-4" into a portion of the rear yard setback on the first floor of the building (Unit D - 196 sf) for a 5'-0" rear yard setback for Unit D; and A projection of 8'-8" into a portion of the front yard setback on the first floor (Unit A - 71 sf, Unit K - 145 sf) for a 18'-5" front yard setback for Units A and K. This is for the construction of a new, three-story, 11-unit courtyard multi-family building with 27 parking spaces located within a subterranean garage. The proposed building is designed utilizing the City's Courtyard Housing Standards (Section 19.36.265). As such, the project qualifies for Courtyard Housing incentives discussed in further detail below. The combined site is approximately 14,010 square feet (0.32 acres), and is zoned R3B (Residential, Multi-Family Medium-Density). The base density for this site allows 11 units. The applicant has elected to pay the in-lieu/impact affordable housing fee into the City's Housing Trust Fund (Per Section 19.22.030 - Table 3-5 of the WHMC), so the proposed project will include all market rate units. There are two two-bedroom units, and nine three-bedroom units in the project. Parking is provided within a subterranean parking garage that includes 22 residential spaces, three guest spaces and an extra space, for a total of 27 parking spaces. Pursuant to Section 19.28.040 of the WHMC, Off-street Parking and Loading Standards, two spaces are provided for each of the two- and threebedroom units. In addition, one guest parking spaces is required for every four dwelling units. There are 14 tandem parking spaces, and 13 single parking Page 6 of 14

spaces, of which nine spaces are compact spaces. There are also two handicapaccessible parking spaces. Residential Multi-family Standards The proposed project generally complies with the standards for residential districts (Chapter 19.06), multi-family dwellings (Section 19.36.280), Courtyard housing projects (Chapter 19.36.265), and general development standards (Chapter 19.20). The following table summarizes the requirements and project compliance with minimum standards: Development Standard Permitted/ Required Proposed Density Maximum average unit size One unit per 1210 sf of lot area lot 11 units area is 14,010 sf= 11 units On-site affordable required or pay in-lieu affordable housing impact. fee 1,500 sq. ft. In lieu affordable housing impact fee will be paid 1,650 sf* (Modification #1) Height Front yard setback Side yard setback Rear yard setback Parking Private open space Common open space Driveway width (max.) Front facade 35 feet I 3 stories. Average of adjacent properties = 28'-6" required Additional 6 feet for 2 d and upper stories. : 6'-0" interior side yard 5'-0" street side yard 15'-0" : 22 spaces/2-3bd unit (22 spaces) : and 1 guest space/4 units (three : spaces)= 25 required parking ' spaces Up to 50% allowed compact. spaces per courtyard housing incentives. ; 120 sf per unit 1000 sf : 24'-0" maximum width 50% habitable space w/ private entry 35 feet I 3 stories 25'-8"* (Modification #2). 28'-6"-10%= 25'-8"** (Exemplary Design) 18'-5" (Unit A and Unit K)*** (Courtyard Incentive) 6'-0" 5'-0" 13'-6"* (Modification #3) 5'-0" (Unit D)*** (Courtyard Incentive) 27 spaces provided (two extra spaces) 14 tandem, 13 single spaces. Nine spaces are compact (33%)*** (Courtyard Incentive) --- - - -- -- - Minimum 120 sf per unit provided. 1,370 sf provided in the cou.r!y_ard 20'-0" wide driveway Over 50% of the front fa9ade contains habitable space, entrance to the courtyard as well as the building itself provided at street fa9ade. Page 7 of 14

Development Standard Permitted/ Required Proposed Front yard setback paving. Maximum 45% of FYSB paved (max.) 45% of FYSB is paved. ::;::a~~~le surface in, At l~ast 50% p~rmeable.. ~:;~;~~o~~~:~~~!~~~~s will *Modification: Section 19. 60. 040 allows a 10% modification of a development standard **Exemplary Design: Section WHMC 19.06.040 allows a waiver of the 6'-0" setback for floors above the first floor ***Courtyard Housing Incentive: 19.36.265 allows the granting of incentives at the discretion of the review authority Courtyard Housing Courtyard Housing Requirements The proposed project is designed utilizing the Courtyard Housing standards and incentives set forth in Section 19.36.265 of the West Hollywood Municipal Code. These standards are intended to encourage the construction of housing designed around a central courtyard element, and provide for certain incentives for qualifying projects. In order to qualify, a project design must incorporate a number of elements of courtyard housing buildings. A matrix is provided as Exhibit B to demonstrate how the project meets and complies with the courtyard housing standards. Courtyard Housing Incentives In exchange for providing a courtyard building with amenities for the residents, the applicant requests to use three of the five available project incentives: provide a maximum of 50% compact parking spaces; allow a portion of the building to extend into the front yard setback; and allow the building to extend into the rear yard setback. The applicant is requesting to provide nine of the 27 parking spaces (approximately 33%) as compact parking. Normally, compact parking is not allowed for residential projects, but for projects meeting the courtyard design standards, up to 50% of the required parking may be provided as compact spaces. The applicant is also requesting to encroach a total of 216 square feet of the front of the building (Units A and K) into the front yard setback 7'-4" for a front yard setback of 18'-5" from the front property line for these two units. A portion of the rear of the building (Unit D) encroaches 8'-8" into the rear yard setback for 196 square feet, which places the building 5'-0" from the rear property line at the furthest point of encroachment. These incentives to encroach into the front and rear yard setback for portions of the building allow the mass and height of three stories to blend into the surrounding one and two story buildings within the neighborhood. Without the encroachment, the building would appear as a three story mass viewed from the Page 8 of 14 _

street. With the encroachment, the building mass is broken down into a singlestory volume that protrudes out into the front yard and a two-story volume stacked on top while still allowing for a courtyard at the ground level. The encroachment complies with Courtyard Housing Front Setback Incentive per 19.36.265(E) and Courtyard Housing Rear Setback Incentive per 19.36.265(0). At the front setback, the portion of the building that encroaches is 20'-0" wide and the encroachment is 7'-4". At the rear setback, the portion of the building that encroaches is 20'-0" wide and the encroachment is 8'-8". Modifications Per Section 19.60.040 of the WHMC, a 10% modification to any development standard may be approved with or without conditions if the decision maker determines that the request will have insignificant impacts on adjacent properties. The applicant is requesting three 10% modifications: reduction to the front yard setback, reduction to the rear yard setback, and an increase to the average unit size permitted in the R3B zone from 1,500 square feet to 1,650 square feet. The required front yard setback for a multi-family residential building in the R3B zone is determined by averaging the front yard setbacks of the two adjacent properties, which is 28'-6" for the subject property. With a 10% reduction, the front yard setback is 25'-8". The required year yard setback for the proposed multi-family residential building is 15'-0". The applicant is requesting a 13'-6" rear yard setback. The maximum allowable unit size in the R3B Zone is 1,500 square feet. The applicant proposes to increase the maximum allowable unit size by 10% to 1,650 square feet. The projections into the front and rear yard setbacks allow the applicant to accommodate the "L" shaped courtyard design. The first floor elements of the structure project into the front setback with the remainder of the unit set back more than six feet from the property line. At the rear of the building, the adjacent commercial property is located very close to the property line, however it is of minor significance because the portion of the building encroaching into the rear setback are mostly single story with the exception of structures at the north-east corner. Staff finds that incorporation of these project incentives is appropriate for the site and a 10% modification is reasonable and justifiable as it helps achieve the desired courtyard design. Affordable Housing The City's requirements for the provision of affordable housing are provided in the West Hollywood Municipal Code (WHMC) Chapter 19.22 Affordable Housing Requirements and Incentives. Subparagraph 19.22.030.B.2, requires rental projects with eleven or more units to include 20% affordable units or to pay the Page 9of14

in-lieu/impact fee. The applicant has elected to pay the in-lieu/impact affordable housing fee into the City's Housing Trust Fund. Therefore, this project does not include an affordable housing density bonus or incentives. Current Rent Stabilization & Housing Status As of November 2, 2016, all six units are occupied by renters. This includes all three properties with six units (1016 Martel Avenue, 7349 Romaine Street, and 7339 Romaine Street. All three properties are rent stabilized. Prior to building permit issuance, the applicant will be responsible for removing the properties from the housing market following the requirements of the Rent Stabilization Ordinance and the Ellis Act, and provide proof to the City that all requirements for tenant relocation including payment of relocation fees have been met. If new rental units are constructed and offered for rent within five years of the Ellis date, the new. rental units shall be subject to the full Rent Stabilization Ordinance (WHMC Title 17). Community Amenities All multi-family projects in the City of West Hollywood are required to provide a number of resident amenities. Among such amenities are: laundry facilities, private storage, and common and private open space areas. The proposed project is designed with amenities for residents that meet, and exceed, the requirements including: The 1,370 square-foot courtyard with multiple gathering spaces and seating areas; A small amenity room of approximately 312-square-feet adjacent to and opens into the central courtyard. The amenity room will include a full kitchen and powder room and will be accessible to the residents. These project amenities will strive to increase the community atmosphere of the building, with residents sharing and gathering within the courtyard and common areas. Because of the size and scale of the proposed project, it is able to achieve this basic, but often elusive goal of multi-family housing. Urban Design Analysis Site Configuration and Landscape Design The project is proposed as a series of units around and "L" shaped courtyard space. There is a 20' x 20' space identified in the plans adjacent to a community room. This space combines with the common open space to provide a generous amenity space with landscaping, including a 36" box Fern Pine, built-in seating and entries for each unit. Since review by the Planning Commission Design Review Subcommittee, the landscaping and configuration in the courtyard has been modified to include one full-size tree and multiple planters with built-in seating. This provides a balance between landscape and hardscape, provides useable and flexible space while creating niches for unit entries. Page 10of14

Entries to the courtyard off both Martel and Romaine are positive features that help break up the massing and provide a pedestrian-friendly experience around this corner project. The entries to the "L" shaped space shall remain open and inviting to maximize these benefits. There is a sloped floor shown on Martel that leads to the entry. This shall be maintained at less than 5% slope, as shown, so that it will not become a ramp and require railings. Gates shall be ornamental and highly transparent. Landscaping provided in these entry areas is low enough to enable visibility into the courtyard while providing sufficient landscape to soften the space and provide scent and color. The subterranean garage is pulled back from the property line on all four sides, enabling in-ground planting. The landscape design and plant palette in the setbacks along Martel Avenue and Romaine Street are well-designed, droughttolerant, and present a variety of texture and color that works well together. Screen planting and vines have been provided along the north and east property lines. The transformer pad is appropriately located at the southeast corner of the project, next to the adjacent commercial property. All other utilities and equipment shall be integrated into the design of the building and properly screened per Condition 8.10 in the Draft Resolution. In order to accomplish the courtyard design, the applicant requests reduced setbacks at the front and rear. In the front, the single story elements project into the setbacks with the balance of the units set back more than six feet. The project design has a varied and three-dimensional configuration at the front. While it does not adhere to the six-foot step-back requirement, its threedimensionality meets the intent of that provision. In the rear, the adjacent property is developed with commercial buildings at or near the property line. Most of the area that extends into the rear setback is one story, with the exception of the northeast corner of the project which is two stories. The reduced setbacks appear to fit within the context, and enable the "L" shaped court which is a benefit to the project and the urban design. Martel Avenue Elevation (West) Page 11 of 14

- ---- - - -~ ------ ----1 - - - ~-"'- - ' - J!fz r _mr_ 1 _:::;;_-~ -~-; ~ '1: - ~ - _,,,.:.; -..!!!;r_ - r--- - - - - ==-i, - CW'K.."*"'~ i 1 ~-"*' L-------j I "i I 1 ~ t-- Site Plan Exhibiting Size and Form of Central Courtyard Mass and Scale The project is a mix of one, two, and three story structures, arranged around an "L" shaped courtyard. The units are staggered in a way that visually identifies each unit and breaks down the scale of the building. Along both Martel Avenue and Romaine Street the ground floor is emphasized with patios, projections, and varying materials to further break down the massing. In the neighborhood meeting, there was a request to further break down the massing. As proposed, the project is a nice balance of heights and different forms. The one and two story structures off-set the three story structures located at the corners. Breaking down the massing further would likely compromise the integrity and composition of the design. The Design Review Subcommittee had a very positive response to the project design, massing and courtyard configuration. The Subcommittee suggested refinements in the materials to for a more sophisticated expression. The architect has responded by varying locations of materials and introducing textured or raked stucco to further break up the massing. The window size, placement and configuration have also been refined to ensure maximum light with a lively composition on the exterior. Windows on the north side have also been revised to ensure privacy for the adjacent neighbor. Page 12of14

Design and Detailing The materials and details reinforce the clear design concepts. The materials on the exterior elevation include wood paneling and different colors and textures of plaster. Per Condition 8.11 in the Draft Resolution, staff recommends use of rough plaster finish with darker colors- rough plaster can attract dirt and should not be used with lighter colors. The window size and pattern on the street elevations appear interesting and help to provide an appropriate sense of scale. The projecting windows will add detail and shadow on the elevations. Larger windows on east elevation will provide light ahd air with little impact on the adjacent commercial property. The courtyard elevations have fewer openings to ensure privacy for the units. As project develops, ensure operable windows for cross-ventilation, and additional scoring shall be used for larger areas of stucco per Condition 8.12 in the Draft Resolution. Private open space is provided on multiple roof decks. Roof decks have been moved away from the north side of the project and screened with landscaping as conditioned in the Draft Resolution (Condition 8.13). Gutters and downspouts are conditioned (Condition 8.14) be internal or incorporated into the design to be less conspicuous. Design Summary The project design meets the exemplary standard, which exempts the project from stepping back the front of the building an additional six feet on the second and third floor, is well-designed and properly scaled to its surrounding context and unique site. The courtyard design meets the intent of the Courtyard Housing standards by providing a social space for the residents with entries to each unit. The project has a clear and legible architectural idea while broken into different well defined units. The units are then broken into several forms, relating well to the surrounding context. The courtyard design and landscaped setbacks will enhance the pedestrian orientation of the building and enhance the overall experience on this residential corner. Green Building The project employs a number of sustainable features throughout. In particular, the courtyard strategy enables passive solar and ventilation throughout. West Hollywood Municipal Code Section 19.20.060 requires new buildings to adhere to a point system wherein the applicant chooses from a range of options on the Green Building Point System Table to ensure that the building will help achieve the City's goals of conserving natural resources, increasing energy efficiency, and improving indoor air quality. All qualifying new projects are required to include elements that add up to 60 points. The proposed project incorporates features designed to earn a total of 66 green building points, including Energy Star Program, using composite wood, installing exterior shading devices on the south and/or west facing windows, and incorporating Flyash or Slag Ash in the concrete. Page 13of14

WEST HOLLYWOOD STATUTES AND FINDI NGS OF FACT The application for the proposed 11-unit project above subterranean parking requires approval of a Master Permit, Demolition Permit, Development Permit, Lot Line Adjustment, and Modifications by the Planning Commission, as indicated in Sections 19.50.30 (Demolition Permits) and 19.48.030 (Development Permits) of the West Hollywood Municipal Code (WHMC) and the California Environmental Quality Act (CEQA) Guidelines. The specific findings are described in Draft Resolution No.16-1179. SUMMARY The applicant is requesting to combine three contiguous parcels along Martel Avenue, demolish all structures on the site, and to construct a new three-story, 27,077 square foot, 11-unit building with 27 subterranean parking spaces. The project is located at 1016 Martel Avenue in West Hollywood, on the east side of Martel Avenue, north of Romaine Street and south of Santa Monica Boulevard. The applicant requests three 10% modifications pursuant to Section 19.60.040 of the WHMC: 1) reduction in front yard setback, 2) reduction in the rear yard setback, and 3) and increase in the average unit size. The applicant also requests three Courtyard Housing Incentives per Section 19.36.265 of the WHMC: 1) to allow up to 50% of the required parking spaces to be compact spaces, 2) allow portions of the front of the building to encroach into the front yard setback, and 3) allow portions of the rear of the building to encroach into the rear yard setback. The project is designed using the City's Courtyard Housing standards and qualifies for these incentives. The building qualifies for exemplary design, per Section 19.36.265 of the WHMC, which prevents the building from the 6'-0" step-back on the second and third floors. All requirements of the Courtyard Housing, Municipal Code, and General Plan have been met, and the project is compatible with the diverse nature of the existing neighborhood. Staff recommends that the Planning Commission approve the requested Master Permit, Demolition Permit, Development Permit, Lot Line Adjustment, and Modifications with conditions in Draft Resolution No. PC 16-1179. EXHIBITS A. Draft Resolution No. PC 16-1179 B. Courtyard Housing Matrix C. Courtyard Housing encroachments into the front and rear yard setback diagram D. Radius Map E. Project Plans and Renderings Page 14 of 14