City Clears Path for Vacant Commercial Building-to-Housing Conversions

The City Council approved a long-awaited adaptive reuse ordinance on June 23 that aims to make it easier to convert vacant offices, commercial buildings and industrial properties into housing and mixed-use developments.

The ordinance creates new zoning and building code regulations intended to remove barriers that have historically made adaptive reuse projects financially difficult or impossible.

Associate Planner Daniel Palafox said the ordinance is one of several housing initiatives stemming from Riverside's sixth-cycle Housing Element, which the city adopted in 2021.

"This afternoon the council will consider the adaptive reuse ordinance, another key action that advances the goals of the housing element," Palafox told the council.

The ordinance allows eligible nonresidential buildings that are at least 15 years old to be converted by right into residential or mixed-use projects in commercial, office, mixed-use, multifamily and business manufacturing park zoning districts. Developers would not have to add parking beyond what already exists for the building, and projects would receive reduced open-space requirements, height flexibility and other incentives designed to improve project feasibility.

Palafox said adaptive reuse has become an increasingly common strategy across California.

"Cities throughout California have used adaptive reuse as a strategy to encourage housing production by repurposing vacant or underutilized buildings," he said.

The approach, he added, can reduce development costs, make better use of existing infrastructure and preserve architecturally significant buildings while creating new housing.

The ordinance also authorizes the city's building official and fire marshal to develop alternative building standards through a technical manual to help applicants navigate building and fire code requirements unique to adaptive reuse projects.

The ordinance comes as Riverside continues to fall behind on its state-mandated housing targets. A city report this year showed Riverside has permitted less than 20 percent of its goal of 18,458 new homes for the 2021-2029 cycle, with no new very-low-income housing built since 2021, prompting continued scrutiny from state regulators. The city has applied for state grants aimed at closing that gap.

Only one resident spoke during the public hearing.

Carol McDoniel said she supported adaptive reuse but urged the city to strengthen protections for historic buildings.

"Adaptive reuse is an excellent way to utilize vacant buildings, provide housing and improve neighborhoods," McDoniel said. "However, for any building of architectural significance that retains unique features, following the guidelines of this ordinance and the technical advisory jeopardizes state and federal financial incentives."

McDoniel argued that buildings more than 45 years old should receive preservation staff review before qualifying for adaptive reuse incentives and said projects should retain enough of the original structure to remain eligible for historic tax credits.

"The bottom line is that adaptive reuse is a community benefit, but a few important safeguards do not appear to be integrated into this proposed process," she said. "The issues I've mentioned will negatively impact projects and their financial viability, but a few amendments can bring about the positive outcomes that we're looking for."

Councilmember Philip Falcone largely agreed with McDoniel's concerns and questioned why the ordinance had not been reviewed by the Cultural Heritage Board before reaching the council.

Planning staff responded that they had worked with the historic preservation officer to ensure that adaptive reuse projects involving historic resources would still be required to comply with the city's historic preservation regulations under Title 20.

Historic Preservation Officer Scott Watson said existing city code already requires designated or eligible historic structures to undergo the certificate of appropriateness process and allows preservation staff to require additional cultural resource review when necessary.

Falcone ultimately proposed adding language to ensure the historic preservation officer is involved "as appropriate" on adaptive reuse projects rather than imposing an automatic review based on building age.

Councilmember Sean Mill said he had been advocating for an adaptive reuse ordinance since joining the Planning Commission a decade earlier.

"In 2016 when I got appointed to the Planning Commission…the very first question I asked was, 'Where are we at on getting an adaptive reuse ordinance here in the City of Riverside?'" Mill said. "Ten years later we are here."

Mill said the ordinance would help revitalize aging commercial corridors while making better use of existing infrastructure.

"This is going to allow us to transform underutilized commercial buildings. It's going to help us revitalize a place like the Magnolia Corridor, bring life back to it," he said. "It's going to save time for developers, it's going to save folks money. I think it's a win across the board."

Mill opposed requiring every building older than 45 years to receive additional historic review, arguing that doing so would undermine one of the ordinance's central goals.

"I think that would just add another step, which leads to time and which leads to money," he said.

Councilmember Chuck Conder said he had broader concerns about allowing housing in commercial and industrial areas where residents could later complain about existing businesses.

"If you're going to allow housing to go into industrial commercial areas, many of those go around the clock," Conder said, citing truck deliveries, forklifts and entertainment districts as examples. "So expect a lot of phone calls..."

Despite those concerns, Conder said he generally supported adaptive reuse where appropriate.

The council voted to approve the ordinance, with Robillard abstaining, including Falcone's amendment directing staff to include the historic preservation officer "as appropriate" in the ordinance before its final adoption.