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The height of a structure, as defined by the PMC, is measured from the average elevation of the natural grade of the ground covered by the structure to the mean height between eaves and ridges for a hip, gable, or gambrel roof. The existing zoning designation allows a maximum height of 40 feet. The height of the buildings on the south side of the project site would not exceed 30 feet, 6 inches in height and the buildings with frontage on St. John Street, excluding the existing home, would be 31 feet, measured from finished grade to the highest point of the roof's ridge. As defined by the PMC, the height of both models would be Tess than 30 feet in height. A PMC amendment for limiting height and stories of structures in the Downtown has not yet been initiated and the intent of this policy is to limit residential development to two stories and not more than 30 feet. The proposal is consistent with the Downtown Specific Plan Land Use policy as the new townhomes are two -story and below the maximum height allowed, as defined by the PMC. Zoning and Uses The subject parcels are zoned Multi - Family Residential and Core Area Overlay District. The proposal would rezone the property to Planned Unit Development — High Density Residential (PUD -HDR). The rezoning would permit and conditionally permit those uses listed in Section 18.32.030 and 18.32.040 (One - Family Residential) of the PMC and establish the development standards that would allow the development plan to be implemented. Affordable Housing and Regional Housing Needs Allocation (RHNA) The City's Inclusionary Zoning Ordinance (IZO) requires new multi - family residential projects of fifteen units or more to provide at least 15% of units at prices affordable to very low, low, and /or moderate income households and new single - family residential projects of fifteen units or more to provide at least 20% of the dwelling units at prices affordable to very low, low, and /or moderate income households. The proposed project includes retaining the historic home and constructing 10 attached townhomes, none of which are required to be affordable. The applicant intends to sell the homes at a 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 rezoning additional land within the City for housing is not be necessary to meet current RHNA requirements, the proposed housing would assist in easing the area's housing shortage. In addition, staff notes that the current RM zoning and High Density Residential land use designations already allow for high density, multi - family housing to be developed on the site. Site Plan A PUD development plan allows flexibility in applying Municipal Code standards in order to achieve a superior and innovative overall plan for the site and the area. The applicant development the current site plan with input from the Planning Commission during the Work Session and numerous discussions with staff prior to and 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 maximize the usability of the site. The applicant has opted to retain the existing residence on -site and has provided two on -site guest parking spaces for the development. Staff finds the proposed setbacks to be acceptable and similar to other small -lot PUD developments in the City, some of which are located in the Downtown. P16 -1201, PUD -120, & TRACT 8326 Planning Commission 14 of 32