Housing Element Update

Staff presented the near completion of the draft housing element to the City Council on June 18, 2024. The staff is finalizing corrections to the Housing Element document in preparation for submission to the Department of Housing and Community Development (HCD). Corrections were given to staff on May 9, and will be ready to submit to HCD before the deadline of July 1 as per the stipulated agreement.

It should be pointed out that regarding the HIOZ parcel list, the properties that were directed to be removed by the Council at the beginning of this year are removed as per alternative #2 within the Environmental Impact Report (EIR) document. So, the maps you see are older maps that reflect updates from the beginning of the year but do not include those parcels that were directed to be removed.

Consultants from Rincon and Dudek presented an overview of the housing element and the regional housing needs assessment. Housing is one of the mandatory elements of the City’s General Plan. Every City and county must have a housing element certified by the state. This housing element covers the planning period of 2021 to 2029. A first draft was created in 2021 that was submitted to HCD. HCD submitted a review letter. Then, there was a change of consultants in September 2022. And then, the revised draft housing element was submitted on March 25, 2024. Then we received a review letter from HCD on May 9, 2024, and that is what the staff has been responding to. The staff has also been responding to a lot of recent legislation passed since the first cycle housing element, including bills passed in the last few years to update the housing element.

One of the major revisions to the housing element since the original 2021 draft is the fair housing analysis. AB686 was passed in 2018, which requires all jurisdictions to include a full assessment of Fair housing. This assessment is a geospatial analysis of trends relating to disparities in segregation and other contributing factors to fair housing concerns.

The housing plan was greatly revised since the original draft. Including affordable housing or all income levels and special needs populations. The City must affirmatively further fair housing and reduce any trends in in terms of segregation and increase access to fair housing.

The City must also take action towards homelessness prevention and supporting housing for homeless populations, providing tenant protection and support. There were existing programs in the original draft of the housing plan where the actions were modified and included new objectives and timelines.

The City must show the land capacity to support the regional housing needs assessment, which is approximately 13,000 total units. The site inventory is a list of sites that shows that the City has the capacity to meet the Regional Housing Needs Allocation (RHNA). Based on the RHNA income level breakdown, the unit capacity assumptions in the site, or the site inventory, are based on recent development trends that are in line with HCD guidelines. All of the sites included in the site inventory, with the exception of one publicly owned site, are within the HIOZ.

Religious institution sites were originally included in the site inventory, but they were removed based on our ability to justify to HCD the inclusion of those units. SP166 a bill where a jurisdiction must maintain adequate sites during the course of the planning period to accommodate the remaining unmet RHNA at all times throughout the planning. The City must monitor residential development annually and promote available sites for development.

The housing element also outlines a number of constraints that might reduce the ability of a certain type of housing or any housing to be developed in the City. And to ensure that the City’s zoning ordinance is up to date with recent state legislation.

The next step for the housing element is the public review of the current draft of the housing element, which ends on June 21. And we must submit the next draft to HCD by July 1. The staff will work with HCD on revisions to the housing element. Then, we’ll head into public hearings for the Planning Commission and City Council from September through November. After adoption, we’ll submit the housing element to HCD for certification by November 6. The City must adopt the HIOZ and make certain zoning code amendments before HCD grants the city certification of the housing element.

Public Comments on Housing Element Update

• Jane Rands said, “I just have a couple of questions to clarify. When there was a comment about passing the HIOZ, is it because the state requires it or because it’s in our plan? I’m curious about the proposed numbers. We’re required to provide opportunities for 13,309 units, and in previous versions, the highest proposal was 35,000.

“I also want to understand the approval process, which I know will come back to the Planning Commission and City Council with some adjustments based on community input, the council’s direction, and Planning Commission ideas. I’m wondering about the feasibility and realistic parameters for making changes at that point.

“I appreciate the 10% affordability mandate in the HIOZ. We really need to encourage affordable housing. I share Councilmember Zahra’s concerns about the public need for parking, but I understand that the state often sets limits there. If we can increase the number of parking requirements per unit, that would be beneficial. I think it’s important to have clear, standardized regulations that have been vetted by the public, so it’s not a case-by-case basis, and to clearly express our community’s desires.”

• Matt Leslie said, “Regarding parking, I would prefer people not to rely on cars and instead walk or use public transportation. However, the current public transit system is not sufficient for most people’s needs. Reducing parking spaces is often justified by the idea that people are working from home more, but they still tend to own cars. For example, a one-bedroom apartment with one parking space works for one person with a car but not for a couple. I want to avoid incentivizing construction without adequate parking, leading to more cars on the streets.

“Docking electric cars won’t reduce traffic; we need to push for better mass transit. It’s important to address this issue. Are schools being counted as open spaces? Often, they are, but they may not actually be accessible. While having retail below housing is great, it doesn’t always succeed. Sometimes, the spaces remain empty or are inhabited by businesses that don’t engage the public. I’d also like to see more affordable housing, at least 10% below moderate prices.”

• Scott Hess said, “One of the previous speakers mentioned that an exhibit identified a possible total of over 21,000 units. I want to know if this can be limited to 13,000, with a reevaluation every 5,000 units built. If we proceed with the HIOZ, I propose keeping the scope to 13,000 units for the next 8 to 10 years, followed by a review. Regarding development standards under the HIOZ, I’m wondering if the density bonus law or any other state incentives take precedence or if a developer can request reduced standards under these provisions.

“I’ve been reassured multiple times over the past few years that there will be public notification to property owners and everyone within at least 300 feet when the HIOZ is adopted by the Planning Commission or City Council, or when public hearings are held. Can you clarify if a public hearing will be required when a commercial developer proposes housing on their commercial site?

“I’m concerned that after the HIOZ is adopted and surrounding properties are notified, administrative approval could allow for 50-60 housing units without public input. My main concern is ensuring public outreach and notification for surrounding properties as part of the HIOZ zoning.”

• Jane Reifer said, I believe it’s crucial to discuss the details of the lawsuit settlement for the benefit of the public. It seems like the settlement agreement imposes restrictions on public input. This means there may be limitations on what can be done due to the settlement, and the public deserves to be informed about these restrictions.

“While I understand the importance of the Housing Implementation Overlay Zone (HIOZ) for meeting housing needs, I also believe there are alternative approaches that could be explored. It’s important to understand the flexibility available to apply more nuanced rules instead of strictly adhering to HIOZ.

“Additionally, it’s concerning that HIOZ may limit community discussions and result in a significant population increase without adequate consideration. Exploring alternatives such as an inclusionary housing policy could be beneficial, and we should also address the lack of rehousing options for non-conforming residences facing eviction due to new developments. It’s essential to understand the reasons behind these limitations.”

• Maureen Milton said, “I am concerned about the decision-making process for religious structures and other important considerations. It’s crucial to understand the reasoning behind their removal and the timing of these decisions. We should prioritize what is best for our community, not just what developers want. I am particularly frustrated by developers eliminating ground floor living facilities for the sake of parking.”

• A resident said, “I’m looking at the HIOZ map. It’s concerning the little apartments on the 600 block of West Commonwealth are on the map. It is already existing housing. Seems to be some things that maybe this map needs to be looked at again. And if those homes were to be taken out, where would those people go? So I just have concerns from my neighborhood about why that’s on the HIOZ map.”

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