**DUE TO THE STATE HOUSING CRISIS, THE CALIFORNIA STATE LEGISLATURE REQUIRES CITIES TO COMPLY WITH STATE-MANDATED HOUSING LAWS. THE STATE REQUIRED THE CITY TO ADOPT THE ROD, WHICH ALLOWS THE CITY TO RETAIN LOCAL PERMITTING AUTHORITY AND AVOID THE POTENTIAL FINANCIAL/LEGAL REPERCUSSIONS IF THE CITY DID NOT HAVE A STATE-CERTIFIED HOUSING ELEMENT**

In 2022, the City Council adopted the State-mandated 6th Cycle Housing Element. In order to gain certification of the adopted, State-mandated Housing Element from the California Department of Housing and Community Development (HCD), the City established a Residential Overlay District (ROD) in March 2023 through adoption of Ordinance No. 23-0006. The ROD allows development of qualifying multifamily residential and mixed-use projects on commercial properties by-right (without a public hearing). Properties included in the ROD are shown on the City’s zoning map, with most of the sites located along Sepulveda Boulevard and Rosecrans Avenue.

Legislative Positions

The Manhattan Beach City Council periodically reviews bills, initiatives, or legislation pending in other governmental agencies. The purpose of this is to outline the position of the City Council on priority issues and matters that impact the City’s ability to operate effectively, promote City interests, and protect local authority. For more information, please visit the Legislative Positions webpage.

Community Forum

The City hosted a community forum on April 9, 2025, to provide information and listen to residents’ concerns regarding the ROD. The presentation can be found here.

Frequently Asked Questions (FAQs)

Have questions regarding the ROD? Please see the FAQs below.

FREQUENTLY ASKED QUESTIONS

 

ROD BACKGROUND

• Why was the ROD created?

• How many properties in the City are subject to ROD?

• How were the ROD sites selected?

• Why were certain commercial properties along the Rosecrans corridor not included in the ROD? Can this be reconsidered?

• What are the development standards for ROD?

ROD, STATE DENSITY BONUS LAW, AND AFFORDABLE HOUSING

• How does State Density Bonus Law (DBL) affect ROD projects?

• How will the ROD affect current city development patterns?

• Why did the City establish the ROD on more land than is necessary to meet its RHNA?

• How will the City meet its RHNA in the low- and very-low income categories?

• What are the affordability levels and unit breakdown of the City's RHNA?

• Who qualifies for "affordable" housing under State law?

• What is the maximum rent that can be charged for affordable units under State law?

• How many units can actually be constructed within the ROD?

• What are eligible projects under ROD?

• Do all ROD projects include affordable units?

• When can the City require modifications to a Density Bonus project?

• What is the process to apply for a project under ROD?

ROD AND COMMUNITY IMPACTS

• Who is responsible for ensuring that health, safety, and environmental assessments are conducted for density bonus projects that request development standard waivers?

• What process does the City use to evaluate health and safety impacts of ROD projects, and when can the City require modifications to a proposed project?

• What actions has the City taken to address the construction related impacts of the buildings that are proposed in the ROD?

 

ROD BACKGROUND

 

Why was the ROD created?

The City is mandated by the State to update its Housing Element and implement associated programs within a given timeframe in order to comply with State law, maintain local control of permitting authority, and avoid financial/legal consequences. The ROD was established in March 2023 as part of the 6th Cycle Housing Element update, the implementation of which was a required step toward obtaining Housing Element certification from HCD. The ROD enables the City to meet the Regional Housing Needs Allocation (RHNA) target of 774 units during the eight-year planning period (2021–2029) by creating more opportunities for multifamily housing development. 

 

How many properties in the City are subject to ROD?

The ROD is applicable to 34 sites, comprised of 75 parcels totaling approximately 43 acres in the General Commercial (CG), Planned Development (PD), and Local Commercial (CL) zoning districts. The location of ROD sites can be found on the City’s zoning map.

 

How were the ROD sites selected?

Per State Housing Element law, eligible sites were selected based on stringent criteria established by HCD, which required a parcel-by-parcel analysis to determine each site’s potential for redevelopment within the current planning period (2021 – 2029). Site selection was reviewed and approved by HCD utilizing the following criteria:

• Past and recent development trends on nonvacant sites in and around the City

• Undervalued property with a land-to-improvement (LTI) ratio of less than one

• Underbuilt sites where the current floor area ratio (FAR) is less than 100% of the maximum allowed

• Buildings that are more than 30 years old, which is a general threshold that affects property valuation and land value

• California Tax Credit Allocation Committee (TCAC)/HCD Opportunity Areas, where a site has access to greater resources that support positive economic, educational, and health outcomes for lower-income households

• Potential to consolidate adjacent sites, which can achieve a minimum of 0.5 acres in size

• Known developer interest that has been revealed through discussions with the City

• Community input received from extensive public outreach efforts conducted during the 6th Cycle Housing Element update process which included, but was not limited to, the following meetings and events:

• August 24, 2021 City Council meeting

• August 31, 2021 Stakeholder's Workshop

• September 15, 2021 Planning Commission Study Session

• September 21, 2021 City Council meeting

• October 2, 2021 City's Hometown Fair

• November 2, 2021 City Council meeting

• December 8, 2021 Planning Commission meeting

• January 12, 2022 Planning Commission meeting

• February 1, 4, 9, and 15, 2022 City Council meetings

• March 22, 2022 City Council meeting

• September 23, 2022 City Council meeting

Additionally, even if a site does qualify based on the criteria above, HCD typically will not approve the site for inclusion if it is unlikely that the site will redevelop within the planning period. Factors that often influence the potential for redevelopment include the size of the sites (both very small and very large sites are less likely to redevelop), the condition of the sites (properties and buildings that have been recently upgraded, indicating that significant investment would be lost if the property were redeveloped) and the presence of major/national tenants (who tend to have longer-term leases and 

less likely to discontinue operations in the short-term). After exhaustive analysis and consideration, the City identified properties that met HCD’s stringent selection criteria. Once these sites were submitted to, and approved by, HCD, the City established the ROD to achieve Housing Element certification. This process was essential in ensuring compliance with State housing requirements while balancing community feedback and local development patterns to the greatest extent possible. As noted above, HCD’s certification of the City’s housing element ensures that the City retains local permitting authority and avoids potential legal and financial consequences resulting from non-compliance with State housing mandates, including exposure to “builder’s remedy” projects that can seek to bypass the City’s General Plan land use and zoning regulations.

 

Why were certain commercial properties along the Rosecrans corridor not included in the ROD? Can this be reconsidered?

As noted above in the, "How were the ROD sites selected?" section, the City identified properties for inclusion in the ROD which met HCD’s stringent selection criteria. Three large properties along Rosecrans Avenue totaling approximately 13 acres were determined to be eligible and have been included in the ROD. Other properties on Rosecrans Avenue between Sepulveda and Aviation boulevards did not meet HCD’s selection criteria due to the following factors:

• Existing use: Most sites include major/national franchise tenants that are considered an impediment to redevelopment because it is unlikely that the businesses would discontinue operations within the planning period.

• LTI and FAR: All sites have land-to-improvement (LTI) ratios and floor area ratios (FARs) greater than 1, indicating that the sites currently are neither undervalued nor underbuilt.

• Building condition and/or age: While most sites were developed more than 30 years ago, they are all in good condition, with some having seen significant investment and renovation in the last 10-15 years.

• Parcel size: Government Code Section 65583.2(c)(2)(A)(B) requires the size of sites identified for lower-income units be limited to 0.5 to 10 acres, as lot sizes beyond that range may not facilitate affordable housing development for lower-income households, unless the local agency can show redevelopment of similarly sized sites for lower income housing occurred during the prior planning periods. The City of Manhattan Beach had no such projects.

Site-specific information on the Rosecrans Avenue properties which were not included in the ROD is provided below.

Absent changes in HCD’s selection criteria, the Rosecrans Avenue sites noted above would remain ineligible. City staff will continue to monitor potential changes in Housing legislation which may allow these sites to be included in the ROD. 

 

What are the development standards for ROD?

Regulations pertaining to ROD are incorporated into the Manhattan Beach Municipal Code (MBMC) as Chapter 10.50 (Residential Overlay District), as well as the General Plan Land Use Element. A summary of the ROD development standards is provided in the table below.

 
Note: Pursuant to State Density Bonus Law, qualifying ROD projects providing affordable housing units may be entitled to deviate from development standards contained in this table (such as height) and elsewhere in the MBMC. State law regarding density bonus concessions and waivers severely limits the City’s authority to limit or deny these requests.

 

ROD, STATE DENSITY BONUS LAW, AND AFFORDABLE HOUSING

 

How does State Density Bonus Law (DBL) affect ROD projects?

The purpose of State Density Bonus Law (DBL) is to provide incentives to developers in exchange for building affordable housing units. In essence, it allows developers to build more dwelling units than would otherwise be allowed on a property as long as a portion of the units are restricted as affordable housing units. While State DBL has been part of the California Government Code (§ 65915) since 1979, it has been strengthened significantly over the past decade. At this time, State DBL allows for increases in density of up to 100%, depending on the number of affordable units provided and the level of affordability. Additionally, State DBL allows developers to seek concessions and waivers to modify requirements of local zoning codes and regulations, including height, if it is necessary to accommodate their proposed project. (It is important to note that waivers and concessions do not apply to Building and/or Fire Code requirements.) Local agencies’ ability to deny requested concessions or waivers is limited pursuant to State DBL and court decisions interpreting State DBL. Further, State DBL explicitly states that it “shall be interpreted liberally in favor of producing the maximum number of total housing units” (Government Code Section 65915(r)). 

How will the ROD affect current city development patterns?

The ROD establishes development standards to supplement the underlying base zoning on applicable properties to facilitate additional housing opportunities in the City. As an overlay, the existing base zoning district regulations will continue to apply, while also providing an option for the property owner to develop multifamily or mixed-use (commercial/residential) projects through the ROD regulations. It is likely that a number of ROD properties on Rosecrans Avenue and Sepulveda Boulevard will be developed with multi-story residential or mixed-use projects. Because ROD developments will likely take advantage of State DBL, it is likely that some of the development standards in the ROD will be modified on a case-by-case basis depending on the project being proposed. As such, ultimate development patterns remain unknown at this time. 

 

Why did the City establish the ROD on more land than is necessary to meet its RHNA?

In order to comply with State Housing Element law and achieve Housing Element certification, the City was required to establish zoning for properties at a minimum density of 20 dwelling units per acre and a maximum density that is greater than what is permitted in the City’s high-density residential (RH) zoning district. To comply with this requirement, the City established the ROD with a minimum density of 20 dwelling units per acre and a maximum density of 60 dwelling units per acre. However, HCD takes a conservative stance in reviewing the sites inventory and assumes development capacity at the low end of that range (20 units per acre).

Additionally, HCD requires cities to build a buffer into their sites inventory in the event that some of the properties are developed with non-residential uses, as is permitted by the underlying zoning district(s) for ROD properties. This is especially true to the lower-income sites inventory as it is much more difficult to realize development on non-vacant sites that are comprised of numerous small-sized parcels. As such, a sufficient buffer was necessary to demonstrate the City’s ability to accommodate lower-income units, which resulted in 845 units under ROD when the minimum 20 units per acre is applied.

 

How will the City meet its RHNA in the low- and very-low income categories?

As noted above, the City was assigned a RHNA of 774 units, which includes 487 low- and very low-income units. With credit given for seven low-income units approved prior to the current Housing Element cycle, another nine units for an underutilized site identified in the 5th Cycle Housing Element, and an allowance to project the construction of 50 affordable accessory dwelling units, sites identified in the Housing Element must accommodate 421 low- or very low-income units (at minimum). If all ROD properties were redeveloped at the minimum permissible density of 20 dwelling units per acre, 845 units would be constructed. In such instance, approximately half of those units would need to be restricted as affordable to low- or very low-income households. However, the ROD only requires 20% of the total units to be restricted for low- or very low-income households, resulting in the production of 180 such units, and a shortfall of 241 units.

The shortfall may be accommodated by either producing more units (beyond 845) or requiring a higher percentage of lower-income units. The latter would not only require amendments to the MBMC, but may also disincentivize production of housing in general because it would be less likely that the market-rate units could subsidize the affordable units. Producing more units, however, could be accommodated within the current regulatory framework. For instance, if all ROD properties were developed at a density of 50 dwelling units per acre, 2,143 total units would be built with 440 (20% of the 2,143 units) of the units restricted to low- or very low-income households. (While it is unlikely that all ROD properties will be redeveloped during this Housing Element cycle, it is probable that those which are redeveloped will be built at a greater density than 50 dwelling units per acre, making up for the unrealized units on properties which are not redeveloped.)

 

What are the affordability levels and unit breakdown of the City's RHNA?

 The City is required to plan for the following four household income categories and corresponding RHNA units during the planning period: 

 

Who qualifies for "affordable" housing under State law?

Per State law (CA Health and Safety Code § 50052.5), housing is considered affordable when a household spends no more than 30% of its gross income on rent, utilities, mortgage, property taxes, insurance, and homeowner association dues (if any). The affordability is based on a survey of local household area median income (AMI), adjusted for household size and categorized as below:

 

• Acutely low income: 0-15% of AMI
• Extremely low income: 15-30% of AMI
• Very low income: 30-50% of AMI
• Lower income: 50-80% of AMI
• Moderate income: 80-120% of AMI

 The income limits referenced in the AMI is adjusted each year by HCD and posted on their website under ‘Official State Income Limits’.  As of April 23, 2025, the AMI for Los Angeles County is as follows: 

What is the maximum rent that can be charged for affordable units under State law? 

Maximum rent for affordable housing units is derived from annual household income as a percentage of the Los Angeles County’s annual median income. Maximum housing costs, including utilities, is capped at 30% of the maximum   annual household income at each specific income level (extremely low, very low, low, moderate), and is adjusted based on household size. The table below identifies the rent limits as of 2025. 

 

How many units can actually be constructed within the ROD?

The City established the ROD on approximately 43 acres of land. At the low end of the ROD density range (20 dwelling units per acre), approximately 850 units could be built, which accommodates the City’s RHNA and builds in the necessary buffer described above. At the high end of the ROD density range (60 dwelling units per acre), more than 2,550 units could be built. However, this number does not represent an absolute maximum number of units that could be constructed on sites identified in the Housing Element. Pursuant to State DBL, ROD properties are eligible for a density bonus of up to 100%. In essence, this puts an upper limit on the total number of units that could be constructed in the ROD at approximately 5,100 units in the highly unlikely event that all ROD property owners choose to redevelop their properties and pursue the maximum density bonus allowed for all sites. 

 

What are eligible projects under ROD?

In order for projects to be eligible for ROD, the following requirements must be met:

• Located on a parcel designated with ROD zoning;
• Consist of residential or mixed-use projects with at least 50% of the total floor area dedicated to residential use; and,
• Include a minimum of 20% of the total units for lower-income households

 

Do all ROD projects include affordable units?

Yes. The ROD regulations require that a minimum of 20% of the total units be restricted for occupancy by lower-income households. By providing these units, eligible ROD projects may utilize State Density Bonus Law (CA Gov. Code § 65915) to increase density beyond what is otherwise permitted in the ROD. 

 

When can the City require modifications to a Density Bonus project?

The City may only require project modifications when staff can demonstrate, based on a preponderance of evidence, that the project would have a "specific, adverse impact" upon public health or safety. Under State law, this means:

1. A significant, quantifiable, direct, and unavoidable impact
2. Based on objective, written standards that existed when the application was submitted
3. No feasible method exists to mitigate the impact other than project modification
4. The impact arises from violation of specific health/safety standards

State law significantly limits the City's authority in this area. The California Legislature intended that conditions requiring project modifications would "arise infrequently." The following do NOT qualify as grounds for requiring modifications:

1. Inconsistency with zoning height or density limits (when density bonus waivers apply)
2. General concerns about "neighborhood character" or aesthetics
3. Subjective design preferences
4. Policies (including General Plan policies) that promote general health, safety and welfare in the community
5. Traffic congestion concerns not based on specific safety violations

The City's review focuses on ensuring compliance with the established, objective safety requirements while respecting the State-mandated streamlined approval process for housing development.

 

What is the process to apply for a project under ROD?

Projects subject to ROD will be reviewed through a streamlined, ministerial approval process (i.e., no public hearing and no discretionary review). In addition, per Public Resources Code § 21080 (b)(1) and § 15268 of the California Environmental Quality Act (CEQA) Guidelines, CEQA does not apply to ministerial actions, thus qualifying ROD projects would not be subject to CEQA. That said, pursuant to the Subdivision Map Act and local subdivision regulations (Title 11 of the MBMC), projects that include a Tentative Tract Map or Tentative Parcel Map, including condominium projects, are discretionary applications and are subject to environmental review pursuant to CEQA.

While projects that meet the requirements of the ROD and other applicable sections of the MBMC, including State DBL, may submit directly to Building & Safety Division for plan check, a preliminary review by City staff is strongly encouraged. Through that review, an applicant will be provided with initial multi-departmental feedback. In addition to a preliminary review of the plans, staff will also review the overall project scope, including requested waivers and/or concessions, if a Density Bonus application is submitted concurrently with the request for a preliminary review to determine whether the proposed project is eligible for processing as a density bonus application. (As noted above, waivers and concessions do not apply to Building and/or Fire Code requirements.) Notwithstanding the Density Bonus application submitted with the preliminary review, a Density Bonus application will be required as part of the building permit application to confirm that the project meets all applicable MBMC and State DBL provisions. 

ROD AND COMMUNITY IMPACTS

 

Who is responsible for ensuring that health, safety, and environmental assessments are conducted for density bonus projects that request development standard waivers?

The Community Development Department (CDD) is responsible for processing Density Bonus Applications associated with housing projects located in the City’s Residential Overlay District (ROD). CDD includes the Building and Safety Division as well as the Planning Division, and coordinates project review with all other City departments and divisions, including Public Works, Utilities, and Fire, and outside agencies (Caltrans, Waste Management, etc.). Building Permit applications are routed to staff in these departments, divisions and agencies, where the project is reviewed to ensure compliance with applicable codes and regulations. The inter-department reviews may require modifications to the project to ensure conformance with health and safety standards, although the review is limited to compliance with existing, objective standards.

 

What process does the City use to evaluate health and safety impacts of ROD projects, and when can the City require modifications to a proposed project?

ROD projects are approved through a streamlined, ministerial process (without public hearings) as required by State law. However, the City retains the authority to evaluate projects for compliance with objective health and safety standards and may require modifications in very limited circumstances.

When a ROD project is submitted, City  staff conducts a review to determine whether the project complies with existing, objective health and safety standards. Examples of these standards include:

Manhattan Beach Municipal Code Health and Safety Provisions: 

• Title 9 - Building Regulations Manhattan Beach building standards and local amendments to California Building Code including Chapter 9.44, Construction Rules
• Title 3 – Public Safety including Chapter 3.40, Traffic Site Obstructions
• Title 5 – Sanitation and Health
• Title 7 – Public Works standards for utilities, drainage, and infrastructure including Chapter 7.16, Excavations

California Building and Fire Code Standards:

• 2022 California Building Code structural safety, seismic, energy, accessibility compliance (per Americans with Disabilities Act)
• California Fire Code emergency vehicle access, fire sprinkler requirements, emergency exits
• California Electrical, Plumbing, and Mechanical Codes

State and Federal Environmental Health Regulations:

• South Coast Air Quality Management District (SCAQMD) standards such as:
  • Rule 403 (fugitive dust control during construction)
  • Rule 1113 (architectural coatings/paint VOC limits)
  • Construction emission control requirements
• California Water Quality Control Board regulations such as:
  • National Pollutant Discharge Elimination System (NPDES) Construction Stormwater General Permit
  • Stormwater Pollution Prevention Plan (SWPPP) requirements
  • Best Management Practices for erosion and sediment control
• California Department of Public Health standards for water supply and wastewater systems
• California Department of Toxic Substances Control standards for hazardous materials handling
• Traffic and Transportation Safety Standards:
  • Caltrans Design Manual standards for projects affecting Sepulveda Boulevard (State Route 1)
  • California Manual on Uniform Traffic Control Devices (CA MUTCD) requirements
  • ADA pedestrian access standards

 

What actions has the City taken to address the construction related impacts of the buildings that are proposed in the ROD?

On September 16, 2025, the City Council adopted Ordinance No. 25-0008 that amended the City’s Municipal Code to require most large development projects (including ROD projects) to do the following:

1. Provide the City with a Phase I Environmental Site Assessment (ESA) for the site and, if applicable, a Phase II ESA, and establish a remediation plan if determined to be necessary
2. Construct a 12-foot tall sound barrier that has a sound transmission class (STC) rating of at least 32 along any property line that is shared with a residentially zoned property
3. Require a Construction Management and Parking Plan (CMPP)