Posted July 2026 | By Eric Engelbert | Updated as the project progresses.
34 Apartments Approved on Coast Street: A Dual Density Bonus Unlocks Five Stories in a Mid-Density Garden Grove Neighborhood
Site Plan No. SP-162-2025, filed by West Street Investments, LLC, proposes to replace a vacant building at 13040 Coast Street in Garden Grove with a five-story, 34-unit apartment building on a half-acre lot. The city filed a CEQA Notice of Exemption for the project in September 2025 under the Class 32 Infill Development exemption, confirming entitlement approval. The project is among the newest additions to Garden Grove's residential development pipeline and uses a dual density bonus structure that is less commonly seen than the standard single-income-tier bonus that most density bonus projects employ.
What makes this project distinctive is the combination of affordable unit types it offers. By including both three very-low-income restricted units and three moderate-income restricted units, the project qualifies for two separate density bonuses under California Government Code Section 65915: up to 50 percent above the base density for the very-low-income units, and an additional 38.75 percent for the moderate-income units. Together, these bonuses allow 34 units on a 0.50-acre R-3 zoned site that would otherwise support a fraction of that count under base zoning.
The Location: Coast Street Between Garden Grove Boulevard and Larson Avenue
Coast Street runs roughly north-south in the western portion of Garden Grove, in the 92844 zip code. The project site is on the east side of Coast Street, between Garden Grove Boulevard to the south and Larson Avenue to the north. The address puts it in a neighborhood that sits close to one of Garden Grove's major commercial corridors while remaining on a side street that serves a mix of residential and small commercial uses.
The 0.50-acre parcel is currently improved with a vacant 3,252 square foot building and an associated parking area. Existing walls run along the north, east, and south sides of the site. To the west is the Coast Street right-of-way and sidewalk. Commercial uses abut the property to the north and east, while roadways, parking, and multi-family residential uses are located to the west and south. The site is entirely within an urbanized area with existing utility infrastructure, which is part of the basis for the Class 32 CEQA Categorical Exemption.
The location's proximity to Garden Grove Boulevard gives future residents walkable access to the retail, dining, and service commercial options along the boulevard. Larson Avenue and the surrounding street network connect the site to the broader Garden Grove circulation system and to the 22 Freeway, which runs along the southern edge of the city and provides access throughout the Orange County freeway network.
Five Stories on Half an Acre: What the Dual Density Bonus Makes Possible
The Coast Street Apartments site is zoned R-3 (Multiple-Family Residential) with a General Plan designation of Medium Density Residential (MDR), which allows development at a base density range of 21.1 to 32.0 dwelling units per acre. On a 0.50-acre site, that base density ceiling translates to a maximum of roughly 10 to 16 units without any bonus. The dual density bonus the project qualifies for raises the effective ceiling to 34 units, a density of approximately 68 units per net acre, achieved through the combination of the very-low-income bonus (up to 50 percent) and the moderate-income bonus (up to an additional 38.75 percent).
Five stories is the building height necessary to fit 34 units on a 0.50-acre lot while meeting the open space, parking, and setback requirements that remain applicable even with the concessions and waivers the project receives under the Density Bonus Law. This is not uncommon for density bonus projects on smaller infill parcels in Southern California: the vertical efficiency of a five-story building allows a meaningful residential program on a site that would otherwise support a handful of townhomes or a small apartment building under standard zoning.
The six affordable units, split equally between very-low-income and moderate-income income categories, serve two distinct renter populations. Very-low-income units typically serve households earning up to 50 percent of the Area Median Income (AMI), while moderate-income units serve households earning up to 120 percent of AMI. Moderate-income affordability restrictions are less common in smaller infill projects than very-low-income restrictions, reflecting the slightly different density bonus mechanics and the fact that moderate-income tenants represent a different segment of the housing need spectrum from the households who qualify for very-low-income units.
34 total units
0.50-acre site
New construction
3 moderate-income
28 market rate
Dual density bonus
Garden Grove, CA
Local owner-developer
Between Garden Grove Blvd
and Larson Avenue
Garden Grove 92844
| Project Address | 13040 Coast Street, Garden Grove, CA 92844 |
|---|---|
| Case Number | Site Plan No. SP-162-2025 |
| Total Units | 34 apartments (3 very low-income, 3 moderate-income, 28 market rate) |
| Building Height | 5 stories |
| Site Size | 0.50 acres (21,829 SF) |
| Zoning | R-3 (Multiple-Family Residential) |
| General Plan | MDR (Medium Density Residential, 21.1-32.0 du/acre base) |
| Applicant / Owner | West Street Investments, LLC, Garden Grove |
| Former Use | Vacant commercial building (3,252 SF) |
| CEQA | Class 32 Categorical Exemption (Notice of Exemption filed September 22, 2025) |
| City Planner | Huong Ly, Associate Planner, (714) 741-5302 |
| Project Status | Entitlements approved |
The Dual Density Bonus: How Two Affordable Income Tiers Double the Development Potential
The Density Bonus Law as written in California Government Code Section 65915 allows a developer to stack density bonuses from different affordable income tiers, provided the project meets the applicable percentage thresholds for each. For the Coast Street Apartments project, the three very-low-income units qualify the project for a bonus of up to 50 percent above the base density under Section 65915(f)(2), which requires that at least 15 percent of the base unit count be reserved for very-low-income households. The three moderate-income units separately qualify the project for an additional bonus of up to 38.75 percent under Section 65915(v), which applies when at least 12 percent of the base units are reserved for moderate-income households.
Layering both bonuses results in a project that can deliver 34 units on a site that would otherwise cap out at roughly 10 to 16 units under base R-3 zoning. The difference, those additional 18 to 24 units above what the base zone allows, is what makes the economics of new construction viable on a 0.50-acre lot in Garden Grove. Without the density bonus, the per-unit land cost on a half-acre parcel would be prohibitively high for market-rate construction at that scale.
The CEQA process was handled under the Class 32 Categorical Exemption for in-fill development, the same exemption used by the Garden Grove Boulevard 98-unit project and consistent with how most small urban infill residential projects in California are processed. The city filed the Notice of Exemption on September 22, 2025, confirming that the project meets all five Class 32 criteria: General Plan and zoning consistency, location within city limits on a site of five acres or less surrounded by urban uses, no habitat value, no significant environmental impacts, and adequate utility service.
Five Stories and Six Affordable Units: A Garden Grove Development Pattern to Watch
The Coast Street Apartments project fits a pattern that is becoming more visible across Orange County's older cities: a small urban infill site, a locally based owner-developer, and the Density Bonus Law used to convert a half-acre of underutilized commercial land into a residential building that serves both affordable and market-rate renters. West Street Investments, LLC is identified in city documents with a Garden Grove Boulevard address, suggesting a locally connected developer rather than an outside institutional investor building at scale.
The dual density bonus structure, combining very-low-income and moderate-income affordable tiers, is worth noting as a development pattern. Most density bonus projects in Orange County use a single-tier affordable set-aside, typically very-low-income units, to maximize the density bonus available under the most favorable Density Bonus Law provision. Layering in moderate-income units as well produces a slightly different result: a project that serves households at two distinct points on the affordability spectrum, from households below 50 percent of AMI to households in the 80-120 percent of AMI range that often earn too much to qualify for subsidized housing but too little to comfortably afford market-rate rents in Southern California.
At 34 units with six affordable units spread across two income tiers, the Coast Street Apartments project will add a meaningful if modest contribution to Garden Grove's rental housing supply when it delivers. In a city where new construction apartment inventory is limited, a 34-unit building near Garden Grove Boulevard represents exactly the kind of incremental infill that planners and housing advocates describe when they talk about adding units in the right places.
Interested in Garden Grove Apartments or New Construction Investment?
The Coast Street Apartments project received entitlement approval in 2025 and is advancing toward construction. We track new development across Garden Grove and throughout Orange County. Contact us for updates on this project, to discuss investment opportunities in Garden Grove's residential market, or to find what is currently available for rent or purchase in the city.
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