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Home My WebLink About2026-05-11; Historic Preservation Commission; 02; Historic Benefits and Incentives – Status UpdateMeeting Date: May 11, 2026 To: Historic Preservation Commission From: Mike Strong, Director of Community Development Staff Contact: Mike Strong, Director of Community Development Mike.strong@carlsbadca.gov, 442-339-2721 Subject: Historic Benefits and Incentives – Status Update Recommended Action Provide the Historic Preservation Commission with an update and solicit any additional input regarding the Planning Division’s Omnibus Code Clean-Up work program prior to the outreach period for proposed amendments. Background and Discussion One of the items listed in the Historic Preservation Commission’s FY 2024-25 Work Plan was to develop recommendations for City Council consideration on possible policy and ordinance amendments that help support and encourage historic preservation activities. Since then, city staff and the Historic Preservation Commission studied different regulatory and non-regulatory approaches to encourage the rehabilitation and re-use of historic buildings and developed a list of possible recommendations. On May 20, 2025, the City Council considered the recommendations of the Historic Preservation Commission and directed staff to initiate amendments to Carlsbad Municipal Code Title 21, the city’s Zoning Code, and to the Local Coastal Program, the planning program for the Coastal Zone, to implement the Commission’s recommendations. This effort has now been consolidated into the Planning Division’s Omnibus Code Clean-Up work program to be more efficient with staff time. Public review is scheduled to begin in the summer. Once the public review period is over, the code amendments will be brought to the Planning Commission for recommendation before returning to the City Council for its consideration. The purpose of this agenda item is to provide the Historic Preservation Commission with an update and to solicit any additional input prior to the outreach period. Background and Discussion The Omnibus Code Clean-Up work program is intended to maintain the Carlsbad Municipal Code for ease of use and accuracy. The Clean Up consists of miscellaneous amendments to Title 21, the city’s Zoning Ordinance, including corrections and updates for the purpose of addressing inconsistencies, updated terminology, and new state regulations. Additionally, the HISTORIC PRESERVATION COMMISSION May 11, 2026 Item #2 1 of 2 Clean Up is proposed for the purpose of adding or deleting minor requirements and improving the overall clarity and usability of the code. Changes to the CMC other than to the Zoning Ordinance may also be proposed. The historic benefits and incentives code amendments endeavor to encourage historic preservation: 1) to permit “major home occupations” in buildings listed in the Local Register; and 2) allow variances from development standards to keep historic buildings historic. Because of the nature of the code amendments, and because the City Council already authorized scope of proposed changes, it made sense to coordinate these changes with the Omnibus Code Clean- Up work program to save time and resources. With the first phase of developing the code amendments complete, the second phase of the schedule can begin. The second phase of outreach involves a more formal public review period. The upcoming public review will now include all community members, such as local residents, developers and builders, and owners of historic properties. Notification of the public review period will be initiated via emails and public notices and will include a designated website with information on the update effort and how to provide feedback. The public review period will last for 6 weeks and staff will revise the code amendments based on the comments submitted before moving forward with a series of public hearings through the remainder of the calendar year. The anticipated schedule of events and public hearings include the following: • May 2026 Citywide public review • July/August 2026 Planning Commission hearing • Fall 2026 City Council hearing At the May 11, 2026, Historic Preservation Commission meeting, city staff will provide a presentation that provide a high-level outline of the proposed changes. Fiscal Analysis There is no direct fiscal impact associated with receiving this informational report. Environmental Evaluation (CEQA) The proposed action is not a “project” as defined by CEQA Section 21065 and CEQA Guidelines Section 15378(b)(5) and does not require environment review under CEQA Guidelines Section 15060(c)(3) and 15061(b)(3), because the proposed action to adopt an annual work plan is an organizational or administrative government activity that does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. Any subsequent action or direction stemming from the proposed action may require preparation of an environmental document in accordance with CEQA or CEQA Guidelines. Exhibits None. May 11, 2026 Item #2 2 of 2 HISTORIC PRESERVATION COMMISSION Item 2 - Historic Benefits and Incentives – Status Update MAY 11, 2026 BACKGROUND AND DISCUSSION •Work Effort in HPC’s FY 2024-25 Work Plan •On May 20, 2025, the City Council considered HPC recommendations •Consolidated into the Planning Division’s Omnibus Code Clean-Up •Public review to begin in May •Planning Commission review in July/August •City Council hearing in late 2026 •Major Home Occupation •Historic Preservation Variance ITEM 2: BENEFITS AND INCENTIVES 3 PROPOSALS MAJOR HOME OCCUPATIONS •A major home occupation (historic resources) means a business or employment activity or use conducted within a dwelling and/or accessory structure deemed as historic resources and carried out by one or more resident occupants of the property. •A major home occupation activity or use is different than a regular home occupation in that a major home occupation is intended to allow more commercial activity and vehicular and pedestrian traffic than a typical residential use and thereby be categorized differently than a regular home occupation. MAJOR HOME OCCUPATIONS CONT’D •Historic resource. There is sufficient documentation of status as a qualified historical property as defined in Chapter 22.02 of this code; •Location. The major home occupation shall be located entirely within the primary residence, garage, an accessory structure, or combination thereof, that meets all current state and/or city code standards for existing historic buildings. a. The major home occupation shall not exceed 50% of the total floor area of all legal buildings on the premises. b. The business may be located in a garage, provided all off- street parking requirements for the applicable zoning district are met. MAJOR HOME OCCUPATIONS CONT’D •Appearance. The major home occupation must be a compatible use to the building(s) or property, preserving those portions or features of the historic resource which convey its historical, cultural, or architectural value. a. The exterior appearance of the building within which the business is conducted shall in no way be changed by the use of color, materials, construction, lighting, signs, sounds, noises, vibrations, display of equipment, etc. unless a permit is obtained and secured in accordance with the provisions of Chapter 22.08. Preservation of properties shall be in accordance with the standards and guidelines set forth by the Secretary of the Interior. b. Limited and context-sensitive upgrading of mechanical, electrical, and plumbing systems and other code-required work to make properties functional is appropriate within a preservation project. MAJOR HOME OCCUPATIONS CONT’D •Allow limited number of customers. •Allow limited number of employees. •Retail sales. Direct sales may occur in the dwelling. Major home occupations are prohibited from conducting sales in garages, accessory structures, or outside of the dwelling. Retail sales of goods must be entirely accessory to any services provided on the site (such as hair care products sold as an accessory to hair styling services), except for merchandise crafted on site (e.g., crafts and artwork). •Deliveries and movement of goods. Movement of products, materials, or equipment associated with the major home occupation shall be limited to between 8:00 a.m. and 6:00 p.m. daily. •Signage. No commercial signage or identification shall be displayed on the premises. VARIANCES •A historic resource variance may be issued for new constructive improvements or additions to historic properties. •A historic resource variance may be requested and issued by the city for a proposed development or addition that would not comply with an applicable development regulation of Title 21 of this code, except that density shall not be increased through a variance. •Eligible properties. Only properties that are listed in the City of Carlsbad Historic Resource Register are eligible. VARIANCES CONT’D •Proposed findings to approve variance: •There is sufficient documentation of status as a qualified historical property or nominated historic resource. •The historic resource variance is an appropriate use of a historic resource and the project is compatible with existing improvements and consistent with the scale and character of existing development in the same vicinity or zone and would not adversely impact properties within the neighborhood or historic district. •The strict application of the zoning ordinance would result in the removal or damage of significant materials, features, or spaces, or would otherwise disproportionately or negatively impact historic preservation efforts; RECOMMENDED ACTION Receive report. 10 ITEM 2: BENEFITS AND INCENTIVES COMMENTS/QUESTIONS Thank you ITEM NO.2 – BENEFITS AND INCENTIVES 11