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REPORT TO THE CITY COUNCIL FROM: JENNIFER K. CLARK, AICP, Director Planning and Development Department THROUGH: ASHLEY ATKINSON, AICP, Assistant Director Planning and Development Department ISRAEL TREJO, Planning Manager Planning and Development Department BY: SAUL PEREZ, Planner II Planning and Development Department SUBJECT ..Title HEARING to consider Text Amendment Application No. P26-02730 and related Environmental Finding for Environmental Assessment No. P26-02730, amending Section 15-1302 of the Fresno Municipal Code to maintain compliance with the City of Fresno Housing Element and permit additional housing types on vacant or underutilized parcels in the (O) Office Zone District ADOPTION of a finding set forth in Environmental Assessment No. P26-02730, that Text Amendment Application No. P26-02730 is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 21080.085 of the California Public Resources Code BILL (for introduction) amending Section 15-1302 of the Fresno Municipal Code to permit additional housing types on vacant or underutilized parcels in the (O) Office Zone District ..Body RECOMMENDATION Staff is recommending approval of Text Amendment Application No. P26-02730 and related Environmental Finding for Environmental Assessment No. P26-02730, amending Section 15-1302 of the Fresno Municipal Code to permit additional housing types on vacant or underutilized parcels in the (O) Office Zone District. EXECUTIVE SUMMARY Text Amendment Application No. P26-02730 proposes to amend Section 15-1302 of the Fresno Municipal Code to permit detached single-unit dwellings, attached single-unit dwellings, and duplexes on vacant or underutilized parcels in the O (Office) District. BACKGROUND On March 30, 2023, City Council initiated Resolution No. 2023-064, which instructed staff to prepare a text amendment to the Development Code to address the changing dynamics of office work and Citywide housing shortages. This direction was also included as a program in the City’s 6th Cycle Housing Element (2023-2031), which was adopted by City Council in December 2024 and certified by the State of California Housing and Community Investment Department (HCD) in January 2025. The 6th Cycle Housing Element identifies seven goals and 37 programs which the city is required to implement over the eight-year planning period. Program 2 requires amending the Development Code to allow higher density housing in all areas of the City, and to allow housing as a permitted use on parcels zoned Office. On November 20, 2025, the City Council adopted Ordinance No. 2025-23, which included an amendment to Section 15-1302 of the Fresno Municipal Code to permit multi-unit residential development on vacant or underutilized parcels in the O (Office) District, with limitations. These limitations include a prohibition on new residential development on vacant or underutilized parcels within 500 feet of a school and limiting height to 45 feet for new residential development unless located within half a mile of Two Major Transit Stops. Text Amendment Application No. P26-02730 proposes further amending Section 15-1302 of the Fresno Municipal Code to additionally permit detached single-unit dwellings, attached single-unit dwellings, and duplexes on vacant or underutilized parcels in the O (Office) District. Detached single-unit residential projects shall comply with the Density Standards for the RM-1 District and the Development Standards for the RS-5 District. Duplex and attached single-unit residential projects shall comply with the Density and Development Standards for the RM-1, RM-2, or RM-3 districts. Should a Tentative Parcel Map or Tentative Tract Map be submitted, it shall be required to comply with the applicable density standards. The additional limitations established as part of Ordinance No. 2025-23 would also apply to projects developed under this Text Amendment. Affirmatively Furthering Fair Housing Under California Assembly Bill 686 (AB 686), public agencies have a legal obligation to take meaningful, deliberate actions to overcome patterns of segregation, eliminate disparities in access to opportunity, and foster inclusive communities free from discrimination. To fulfill this obligation, the City has committed to prioritize projects and programs that support integration, expand access to opportunity, and reduce racial and economic disparities and that promote equitable development practices across the city. Text Amendment P26-02730 is consistent with these goals, as it expands the type of housing permitted in Office zoned parcels Citywide. Housing projects eligible under the provisions of this Text Amendment will provide a greater range of housing types that can be available at a variety of income levels. As identified in Exhibit F – Map of Eligible Sites, sites that qualify for development under this Text Amendment are located in both higher and lower resource areas. Therefore, the proposed Text Amendment is consistent with AB 686 and affirmatively furthers fair housing. ENVIRONMENTAL FINDINGS A Statutory Exemption was prepared for this project pursuant to Section 21080.085 of the California Public Resources Code. California Public Resources Code Section 21080.085, added by Senate Bill 131 (Chapter 24, Statutes of 2025) and effective June 30, 2025, provides that ‘[t]his division does not apply to a rezoning that implements the schedule of actions contained in an approved housing element pursuant to subdivision (c) of Section 65583 of the Government Code.’ HCD has confirmed that this exemption applies to zoning code text amendments, not only zoning map changes, so long as those amendments are consistent with, and implement the actions committed to in, the jurisdiction’s approved Housing Element. Because Program 2 is expressly included in the schedule of actions in the City’s approved and adopted Housing Element, and because the amendment does not fall within any of the statute’s exclusions, the City finds the amendment exempt. For additional information, please see Exhibit E – Environmental Assessment. FRESNO MUNICIPAL CODE FINDINGS Section 15-5811 of the Fresno Municipal Code provides that the Planning Commission shall not recommend, and the City Council shall not approve an application unless the proposed Text Amendment meets Criteria A (1 and 2) of Section 15-5811. Please see Exhibit D for the Fresno Municipal Code Findings. PUBLIC NOTICE A Legal Notice was published in the Fresno Bee on October 25, 2026, pursuant to Fresno Municipal Code Section 15-5007(D) (See Exhibit C). In addition, the notice was posted on the City Clerk’s website, provided to the City’s distribution list for such notices, and emailed to interested parties. REVIEW BY COMMITTEES AND COMMISSIONS District 1: The item was scheduled for the September 10, 2026 meeting but did not receive a formal presentation due to lack of quorum. District 2: The Council District 2 Project Review Committee is currently inactive. District 3: The item was presented on September 22, 2026. The committee members had various concerns and questions regarding noticing requirements, community input, compatibility with the Southwest Fresno Specific Plan, open space requirements, environmental review, and proximity to heavy industrial uses. District 4: The item was scheduled for the September 15, 2026 meeting but did not receive a formal presentation due to lack of quorum. District 5: The Council District 5 Project Review Committee is currently inactive. District 6: The item was presented on September 9, 2026. The committee members had various concerns and questions regarding height limits, setbacks, and noticing requirements. District 7: The Council District 7 Project Review Committee is currently inactive. Tower District Specific Plan Implementation Committee: The item was presented on September 17, 2026. The committee provided comments regarding the proposed use limitations. Airport Land Use Commission: The item was presented to the ALUC on October 5, 2026. The commission made a finding of consistency for the proposed Text Amendment. Planning Commission The Planning Commission considered this item at its regularly scheduled meeting on October 21, 2026. The Planning Commission unanimously recommended approval of the proposed Text Amendment and associated Environmental Assessment. LOCAL PREFERENCE ​ No procurement associated with this item. ​ FISCAL IMPACT ​ No fiscal impact is associated with this item. Attachments: Exhibit A - Director Initiation Exhibit B - Draft Ordinance (Text Amendment No. P26-02730) Exhibit C - Public Notice Exhibit D - Fresno Municipal Code Findings Exhibit E - Environmental Assessment No. P26-02730 (Statutory Exemption) Exhibit F - Map of Eligible Sites Exhibit G - Planning Commission Resolution No.13936 Exhibit H - Presentation