For the City Council Meeting of February 24, 2026
TO: Honorable Mayor and City Council
FROM: Tanya Williams, City Manager
AUTHOR: Christina Taylor, Community Development Director
Title
Request City Council Conduct a Public Hearing to Consider the Adoption of: (1) Resolution No. 8473 Approving a Mitigated Negative Declaration (Environmental Assessment Review No. 25-0020) Prepared for the Housing Element Project, in Accordance with the California Environmental Quality Act (CEQA); (2) Resolution No. 8474 Approving General Plan Amendment No. 25-0001, A Request to Amend the General Plan for the Purposes of Updating the General Plan Housing Element for the Sixth Cycle and to Amend the Environmental Justice Element; (3) Ordinance No. 1709 Approving Zoning Code Amendment No. 25-0002, A Request to Amend Chapter 18.116 (Residential Overlay) of the Rialto Municipal Code to Establish a New Residential Overlay (Housing Opportunity District) and to Modify Permitted Land Uses and Residential Densities to Facilitate the Development of Housing; (4) Ordinance No. 1710 Approving Specific Plan Amendment No. 25-0001, A Request to Amend the Foothill Central Specific Plan and Establish a Residential Overlay (Housing Opportunity District) on Approximately 159 Acres of Land within the Foothill Central Specific Plan to Facilitate the Development of Housing by Reference to Chapter 18.116 (Residential Overlay) of the Rialto Municipal Code; and (5) Ordinance No. 1711 Approving Specific Plan Amendment No. 25-0002, A Request to Amend the Gateway Specific Plan and Establish a Residential Overlay (Housing Opportunity District) on Approximately 20 Acres of Land within the Gateway Specific Plan to Facilitate the Development of Housing by Reference to Chapter 18.116 (Residential Overlay) of the Rialto Municipal Code.
(ACTION)
Body
RECOMMENDATION
Staff recommends that the City Council:
1) Conduct a Public Hearing;
2) Adopt the attached Resolution (Exhibit A) approving a Mitigated Negative Declaration (Environmental Assessment Review No. 25-0020) prepared for the 2021-2029 (6th Cycle) General Plan Housing Element;
3) Adopt the attached Resolution (Exhibit B) approving General Plan Amendment No. 25-0001, updating the Housing Element to the 2021-2029 planning cycle and amending Policy 9-14.4 of the Environmental Justice Element;
4) Introduce the First Reading of an Ordinance (Exhibit C) approving Zoning Code Amendment No. 25-0002, amending Chapter 18.116 (Residential Overlay) of the Rialto Municipal Code to rezone approximately 315 sites distributed throughout the City.
5) Introduce the First Reading of an Ordinance (Exhibit D) approving Specific Plan Amendment No. 25-0001, to establish a residential overlay in the Foothill Central Specific Plan over approximately 159 acres on specified sites; and
6) Introduce the First Reading of an Ordinance (Exhibit E) approving Specific Plan Amendment No. 25-0002, establishing a residential overlay in the Gateway Specific Plan for approximately 20 acres on specific sites in the eastern portion of the Gateway Specific Plan.
APPLICANT
City of Rialto, 150 S. Palm Avenue, Rialto, CA 92376
LOCATION
The proposed project would amend the City of Rialto’s General Plan, Municipal Code, and two Specific Plans. These actions would apply city-wide.
BACKGROUND
The Housing Element is a State-mandated chapter of the City of Rialto’s General Plan and serves as the City’s primary policy document for identifying and addressing local housing needs. State law requires each jurisdiction to evaluate existing housing conditions, analyze future housing demand, and adopt goals, policies, and programs to support adequate housing for all income levels. For the 2021-2029 planning cycle, the Housing Element outlines Rialto’s strategy to maintain and expand its housing supply, identifies candidate housing sites, and establishes programs to meet the City’s Regional Housing Needs Assessment (RHNA) allocation as determined by the Southern California Association of Governments (SCAG).
Under California Government Code Article 10.6, cities must update their Housing Elements every eight years and ensure consistency with statewide housing goals. These goals emphasize providing a suitable living environment for all residents, encouraging cooperation between local government and the private sector, and ensuring adequate housing for households at all economic levels. Rialto’s 6th-Cycle Housing Element responds to these statutory requirements by analyzing demographics, housing stock conditions, governmental and non-governmental constraints, fair housing considerations, and available housing resources.
The City Council previously adopted a Housing Element on February 28, 2023, and again on July 25, 2023, pursuant to a letter from the California Department of Housing and Community Development (“HCD”) indicating that the draft Housing Element was conditionally acceptable. However, shortly after the City Council’s adoption, the Housing Element was subject to a court challenge, and HCD in October of 2023 issued a comment letter on the City’s Housing Element, indicating that the State no longer found the document compliant with State law. Thus, throughout 2024 and 2025, the City undertook significant efforts to both settle the lawsuit and revise the draft Housing Element to obtain HCD’s approval. The Housing Element document under consideration is a product of those significant efforts, and HCD provided a letter on December 2, 2025, finding that the revised draft Housing Element meets the statutory requirements of State Housing Element Law.
The City’s RHNA allocation for this cycle is 8,272 units, including 3,424 units affordable to extremely low-, very low-, and low-income households and 1,371 units affordable to moderate-income households (a total of 4,795 lower- and moderate-income units). As summarized in Table 3-50 and Appendix B of the draft Housing Element Update (Exhibit A), the sites inventory identifies a total development capacity of 16,197 units, providing an 8,726-unit buffer above the RHNA allocation. This represents an overall buffer of approximately 105 percent above the City’s RHNA, demonstrating Rialto’s ability to meet its housing needs across all income levels and reflecting the City’s commitment to proactively provide housing opportunities.
Exhibit F includes the draft Housing Element Update. A digital version is available at the following link: <https://www.rialtoca.gov/633/Plan-to-House-Our-Rialto-Housing-Element>
City of Rialto’s Housing Element Timeline
The City of Rialto began preparing its 2021-2029 Housing Element on March 11, 2021, and subsequently submitted the first draft to HCD for review on October 14, 2021. HCD reviewed the Housing Element and provided the City with a response letter on December 13, 2021, that identified parts of the Housing Element that needed to be revised to comply with State Housing Law. This began a series of review and revision cycles between HCD and the City. Critical dates during this process include:
• September 2020 - SCAG released the draft RHNA allocation for the 2021-2029 cycle;
• March 2021 - SCAG RHNA Allocation Plan was formally adopted;
• March 11, 2021 - City and consultant, Kimley-Horn, kick-off meeting;
• October 14, 2021 - City submitted first draft Housing Element to HCD for review;
• October 15, 2021 - HCD Statutory deadline for adoption of the 2021-2029 Housing Element Update (120 grace period begins);
• December 13, 2021 - City received HCD response letter on First Draft of Housing Element;
• March 8, 2022 - Rialto City Council adopts Housing Element Update;
• April 5, 2022 - City submitted adopted Housing Element to HCD (second draft);
• June 3, 2022 - City received second HCD letter stating noncompliance;
• February 28, 2023 - Housing Element was conditionally approved by HCD and adopted by City Council on the same day;
• October 3, 2023 - City received a letter of non-compliance from HCD (second draft);
• May 15, 2025 - City released third Housing Element Draft for Public review;
• May 28, 2025 - City submitted third draft of Housing Element for HCD review;
• July 25, 2025 - City received a letter of non-compliance from HCD (third draft);
• September 25, 2025 - City released fourth Housing Element Draft for public review;
• October 3, 2025 - City submitted fourth draft Housing Element for HCD review;
• December 2, 2025 - City received letter from HCD, stating the fourth revised draft meets the statutory requirements of State Housing Element Law.
Since HCD’s October 3, 2023, letter regarding the City’s second draft housing element, the City worked on settling the lawsuit, given that HCD was requesting revisions to the document and HCD has the final say regarding whether it considers a housing element in substantial compliance with State law. After extensive efforts and discussion, a settlement was ultimately reached in the lawsuit. After careful consideration, the City agreed to add 28 additional sites to the Housing Element Site Inventory, a site assembly program to encourage contiguously adjacent small lots to consolidate, an inclusionary zoning program to encourage development of affordable housing to meet the City’s RHNA requirements, and a revision to the Environmental Justice element for conformance with the City’s draft Housing Element. The City then engaged HCD for review, and the agency had technical comments requiring revisions. The City engaged HCD for numerous technical assistance discussions and then submitted a subsequent draft for consideration to HCD. The City then received a letter of conditional approval on December 2, 2025.
The Housing Element under consideration is a product of significant efforts to ensure that the City is in compliance with State law, and is thus able to retain local control to the extent authorized by the State.
Rezone Program
Pursuant to state law, Housing Elements must demonstrate sufficient land zoned for housing to accommodate the City’s Regional Housing Needs Assessment (RHNA) allocation. The process of adopting a Housing Element includes conducting a sites inventory. Rialto’s inventory revealed that the City does not have sufficient land zoned to accommodate the City’s 6th Cycle RHNA allocation. To comply with state requirements, the City is obligated to rezone properties to allow for residential use.
The City’s Housing Element Update (HEU) includes Housing Program 2B, “Rezone to provide adequate sites to accommodate the 2021-2029 Regional Housing Needs Assessment (RHNA)”. At the City Council meeting on November 15, 2022, the Council authorized three Specific Plan Amendments to implement the overlay program to add residential as an allowed use in six opportunity areas. On January 11, 2023, the Planning Commission adopted four resolutions recommending that the City Council adopt the overlay program. On August 8, 2023, the City Council adopted Ordinance No. 1681 - Residential Overlay.
It is critical to note that the previously adopted Residential Overlay provided property owners with full discretion to utilize the overlay and stipulated that all underlying uses and underlying zoning shall remain intact. However, on October 10, 2025, California’s Second District Court of Appeal held that local governments cannot satisfy their RHNA obligations by using zoning overlays that allow, but do not require, residential development. In the New Commune DTLA LLC v. City of Redondo Beach, the Second District Court of Appeal held that “[a]n overlay cannot be used to satisfy the minimum density and residential use requirements … where the base zoning expressly permits development that does not include housing.” This ruling impacts not only Rialto but also public agencies throughout California that utilize an overlay.
Given the coincidental timing of the decision and the need for the City to adopt a revised zoning overlay to conform to the revised Housing Element, the draft ordinance was also prepared to comply with the New Commune DTLA v. City of Redondo Beach decision. The revised residential overlay program-Housing Opportunity Overlay (HOD)- is intended to facilitate residential development or mixed uses where appropriate, on sites that are included in the proposed Housing Element. The adoption of the HOD would modify the zoning regulations applicable to the properties identified in the Housing Element site inventory and would supersede the underlying zoning where provisions differ. Existing lawful uses may continue; however, any future development or expansion would be required to comply with HOD standards and other applicable City regulations. The changes necessary to comply with New Commune DTLA LLC are a result of the ruling’s interpretation of the state of housing element law.
Environmental Justice Element Amendment
Environmental Justice elements address six key environmental justice issues as outlined in Senate Bill (SB) 1000: community engagement, pollution exposure, access to public facilities, access to healthy food, safe and sanitary housing, and physical activity.
The City is proposing to update the Environmental Justice element to include Goal 9-14: Fair Housing options for all: Policy 9-14.4: Ensure that development of sites for low-income households is consistent with the policies and goals of this element. This consistency includes but is not limited to sites that are: free from pollution and toxins, protected from air pollution, including trucking routes, free from hazardous waste and water pollution, accessible to quality public transit, accessible to healthy food, and accessible to bicycle routes.
ANALYSIS/DISCUSSION
Housing Element
Notable revisions include the addition of 28 sites to the Site Inventory, and additional programs such as a site assembly program and an inclusionary housing program.
Rezone Program
The proposed overlay program would establish residential overlays in the Zoning Code, the Foothill Central Specific Plan, and the Gateway Specific Plan. The residential overlay program would accomplish the following, which are also listed in Tables B-19 and B-20 of the 6th Cycle Housing Element Update (Exhibit F).
• Opportunity Area 1: Foothill Boulevard - The City has identified 110 parcels totaling 159 acres for rezone to a new zone, which will accommodate an assumed density of 35 dwelling units/acre. The rezone can accommodate a total of 4,437 units.
• Opportunity Area 2: North Riverside Avenue- The City has identified 15 parcels totaling 17 acres for rezone to R-4 HDMF, which will accommodate a maximum density of 48.4 dwelling units/acre. The rezone can accommodate a total of 673 units.
• Opportunity Area 3: Gateway Specific Plan- The City has identified 2 parcels totaling 20 acres for rezone to a new zone, which will accommodate an assumed density of 35 dwelling units/acre. The rezone can accommodate a total of 558 units.
• Opportunity Area 4: Central Area- The City has identified 60 parcels totaling 14 acres for rezone to R-X, which will accommodate a maximum density of 48 dwelling units/acre. The rezone can accommodate a total of 350 units.
• Opportunity Area 5: Baseline Parcels- The City has identified 10 parcels totaling 9 acres for rezone to a new zone, which will accommodate an assumed density of 35 dwelling units/acre. The rezone can accommodate a total of 163 units.
• Opportunity Area 6: Baseline Shopping Center- The City has identified 35 parcels totaling 57 acres for rezone to a new zone, which will accommodate an assumed density of 30 dwelling units/acre. The rezone can accommodate a total of 1,353 units.
• Opportunity Area 7: Housing Opportunity Sites - The City has identified 26 parcels totaling 46.7 acres for rezone to a new zone, which will accommodate an assumed density of 30 dwelling units/acre. The rezone can accommodate a total realistic capacity of 1,053 units.
The Zoning Code Amendment (ZCA) would adopt existing regulations by reference, depending on the underlying zone. Properties that are within an underlying use designation of commercial or mixed-use that are proposing to include commercial development, shall comply with the development standards identified in the Foothill Central Specific Plan’s Foothill Mixed-Use Zone-commercial development shall be limited to a maximum of 50 percent of the total floor area. Properties with underlying residential zones or properties with underlying commercial and/or mixed-use zones that are proposing development projects consisting of 100 percent residential, shall comply with development standards identified in the Rialto Municipal Code, Chapter 18.24, R-4 - High-Density Multiple Family Zone, with three exceptions. Those exceptions include minimum density of 20 dwelling units per acre (du/ac), which is to apply to all sites identified in the site inventory; a maximum residential density is 35-40 du/ac in areas with an underlying residential zone and 50 du/ac in areas with an underlying commercial zone, as identified on Table1: 6th Cycle Housing Element (2021-2029) Sites Inventory by Opportunity Areas (Exhibit G); a maximum building coverage which would increase from sixty (60) to seventy (70) percent of the lot area for all sites identified in Exhibit G, and building height which would decrease from six stories or seventy-five feet to five stories or sixty feet. Parking regulations will be the same as existing R-4 High Density Multiple Family standards.
In compliance with State requirements, the adoption of the ZCA would modify Chapter 18.116 of the RMC.
ENVIRONMENTAL IMPACT
Housing Element Project
Pursuant to Section 15378 of the California Environmental Quality Act (CEQA), an Initial Study/Mitigated Negative Declaration (Public Review IS/MND, dated October 2025) was prepared for the Housing Element Update project (Environmental Assessment Review No. 25-0020). The Initial Study/Mitigated Negative Declaration is attached as Exhibit H. Based on the findings and recommended mitigation measures identified in the Initial Study/Mitigated Negative Declaration, staff determined that the project will not have a significant adverse impact on the environment with mitigation incorporated. All potential impacts identified in the Initial Study/Mitigated Negative Declaration - including, but not limited to, air quality, biological resources, cultural resources, greenhouse gas emissions, hazards and hazardous materials, noise, transportation, and tribal cultural resources - will be reduced to less than significant levels through the imposition of the mitigation measures contained within the project’s Mitigation Monitoring and Reporting Program (MMRP).
The Planning Division published a Notice of Intent to Adopt a Mitigated Negative Declaration (NOI) for the project and distributed it to responsible and trustee agencies and interested organizations in accordance with CEQA. Staff also completed a Notice of Completion (NOC) and submitted the Initial Study/Mitigated Negative Declaration to the State Clearinghouse, initiating the State review period. A 30-day public review and comment period was conducted pursuant to CEQA, during which agencies and interested parties were invited to provide written comments regarding the adequacy of the document. All comments received during the public review period have been addressed in the Final Initial Study/Mitigated Negative Declaration, which includes responses to comments and any necessary errata or clarifications.
Based on the whole of the record, including the Initial Study/Mitigated Negative Declaration, technical studies, responses to comments, and the MMRP, staff have determined that the project will not result in significant environmental impacts with mitigation incorporated. As such, preparation of an Environmental Impact Report (EIR) is not required under CEQA, and adoption of the Mitigated Negative Declaration with the associated Mitigation Monitoring and Reporting Program is appropriate.
Native American Tribal Consultation (Assembly Bill 52 and Senate Bill 18)
In accordance with Assembly Bill 52 (AB 52) and Senate Bill 18 (SB 18), the Planning Division notified applicable Native American tribes of the City’s intent to consider adoption of the Housing Element Update and afforded tribes the opportunity to request consultation. Tribes were provided the statutory consultation period, and where consultation was requested, City staff conducted formal consultation in good faith. Topics raised during consultation included cultural resources sensitivity and protection measures. Mitigation measures requested during consultation were incorporated into the Mitigated Negative Declaration, ensuring that impacts to Tribal Cultural Resources are reduced to less-than-significant levels.
Environmental Justice Element Amendment
The proposed revision to the Environment Justice Element is not a project under CEQA. The revision is not an action which has the potential to result in a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment (Public Resources Code section 21065; CEQA Guidelines, 14 Cal. Code of Regs. Section 15378).
GENERAL PLAN CONSISTENCY
The project is consistent with the following goals of the Housing Element and Economic Development Element of the Rialto General Plan:
Goal 2: Promote and encourage housing development that adequately meets the needs of all socioeconomic segments of the community and region.
Goal 3-5: Assist in the preservation, improvement, and production of housing stock available to lower- and moderate-income residents.
PLANNING COMMISSION ACTION
On January 21, 2026, the Planning Commission opened the public hearing and discussed the Project during a regularly scheduled public meeting. After further discussion, the Planning Commission closed the public hearing and voted 6-0 (1 absence) to adopt Resolutions recommending that the City Council approve the project. Copies of the Planning Commission Resolutions are attached as Exhibit I.
LEGAL REVIEW
The City Attorney has reviewed the staff report and approved the attached resolutions and ordinances to form.
FINANCIAL IMPACT
Operating Budget Impact
The approval of the Housing Element Project will not result in any direct impact to the City’s operating budget.
Capital Improvement Budget Impact
The Housing Element Project does not include any development; therefore, there are no financial costs associated.
Business License
The approval of the Housing Element Project does not require a business license.
PUBLIC NOTICE
The City published a public hearing notice for the proposed project in the San Bernardino Sun newspaper, posted a copy of the public notice outside of the City of Rialto Council Chambers, mailed public hearing notices to property owners impacted by the proposed zone changes, and emailed interested members of the public, as required by State law.