San Juan Capistrano residents could see a new neighborhood with 225 residential units off the 5 Freeway, featuring a mix of single-family detached houses and three-story townhomes.

City council members are expected to discuss initial steps to study the potential development during their meeting on Tuesday night.

The applicant, known as Pendulum Property Partners, has proposed a plan to redevelop the 15-acre Capistrano Business Park — located along Calle Arroyo — into a residential community with up to 225 for-sale residential units.

That would require a vote to rezone the area and update the city’s general plan land use to allow residential development on the site.

Initial proposals include a phased approach that would initially construct 139 units, with a second piece of land saved for a future development phase to complete the full project.

“Our location is an ideal site for residential housing,” reads a July 8 letter to the city from Kevin Hayes, Managing Partner with Pendulum Property Partners.

“It is our intention to amend the General Plan and have a Specific Plan adopted that would allow a dedicated home builder to develop a phased program of site demolition and build a new residential community,” it continues.

The group had filed a different application last year to convert some of the tenant suites into residential apartment units, but that application was withdrawn before this new project was proposed. 

The San Juan Capistrano City Council is slated to meet Tuesday night, starting at 3 p.m. for closed session and 5 p.m. for the regular meeting.

There is no mention of affordable housing in the staff report included with the agenda.

San Juan Capistrano has an inclusionary housing ordinance, which requires developers to either reserve 10% of residential units constructed in town for lower-income households or pay a fee.

The proposal comes after city officials approved a five-story apartment building near city hall and the city’s historic downtown region earlier this year.

Some San Juan Capistrano City Council members expressed concerns over the size of the building, but state law prevented officials from adjusting it since the proposed building did not exceed the city’s height limit.

“Don’t get me wrong, I support housing, but I don’t support five-story buildings,” Councilmember Howard Hart said at that Jan. 21 meeting. 

In that project — which is expected to include 278 units, a five-story parking garage and a retail ground level featuring stores and restaurants — 32 units are planned to be affordable for low-income tenants.

[Read: A South Orange County City Grapples With State Housing Mandates]

Affordable housing limits are based on the state’s Department of Housing and Community Development income limit numbers. For Orange County, the median income for a family of four is $136,600. 

To be considered low-income, a family of four must have a combined annual income under $135,350.

According to state housing mandates, San Juan Capistrano must plan for 1,054 new housing units by 2029. This number is passed down by the state and includes housing units for different income levels.

Angelina Hicks is the Voice of OC Collegiate News Service Editor. Contact her at ahicks@voiceofoc.org or on Twitter @angelinahicks13.