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detached residences and three apartment units, none of which are required to be affordable. The applicant intends to sell the detached homes and rent the apartments at market rate. The City has already met its Regional Housing Needs Allocation (RHNA) obligation to zone land to meet the anticipated housing demand for the 2015-2023 planning period. Although the proposed rezoning would increase the City's supply of market-rate housing, and the smaller apartments units may be more affordably-priced than larger units, rezoning additional land within the City for housing would not be necessary to meet current RHNA requirements. In addition, staff notes that the current Office land use designation of the site already allows for housing to be developed on the site. Certificate of Appropriateness Demolition of buildings in the Downtown requires that a certificate of appropriateness be approved by the Planning Commission. The Downtown Specific Plan's Historic Resources Policy No. 3 prohibits the demolition of any residential building in a commercial or office zoning district found to be a historic resource unless the building is determined to be unsafe or dangerous, and if no other reasonable means of rehabilitation or relocation can be achieved. The home is located in an office zoning district and the historic evaluation determined the house and accessory structures would not be historic resources and could be demolished. At the Work Session, the Commission was supportive of demolishing the existing structures as they were determined to not have architectural or historical interest and would be replaced with a well-designed mixed-use project. Therefore, staff believes that granting a certificate of appropriateness to demolish the buildings is appropriate for this site. The historic resource evaluation is included as Exhibit D for reference. Site Plan A PUD development plan allows flexibility in applying Municipal Code Standards in order to achieve a better overall plan for the site and the area. The current site plan was developed with input from the Planning Commission during the Work Session and several discussions with staff and the applicant after formally submitting the PUD application. Staff worked with the applicant to position the buildings to provide adequate setbacks from the property lines and street frontages, and in order to maximize the usability of the site. The applicant has responded to the Commission's and staffs requests by increasing the side yard setbacks between structures and repositioning the buildings to make them more pedestrian-oriented. Staff finds the proposed setbacks to be acceptable and similar to other small-lot PUD developments that the City has approved, some of which are located in the Downtown. Staff believes that the proposed siting, massing, and size of the units and office/retail space(s) are appropriate for this site and would result in an attractive development for this area of Downtown. The buildings would be in keeping with the scale and massing of the homes on Augustine Street and Old Bemal Avenue. Furthermore, staff is recommending conditions of approval prohibiting accessory structures and additions to the new residential units. Architecture and Design The Downtown Specific Plan states that the design of new non-residential buildings should draw upon the primary exterior features of the Downtown's traditional design character in terms of architectural style and materials, colors, details of construction, height, floor area, PUD-118, 4791 Augustine Street Planning Commission Page 15 of 25