The URL can be used to link to this page

Home My WebLink About2025-07-15; City Council; 13; Processing Privately Initiated Applications to Amend the City’s General Plan and Zoning Designations to Allow for New Residential Development on Properties Not Included iCA Review CDS Meeting Date: July 15, 2025 To: Mayor and City Council From: Geoff Patnoe, City Manager Staff Contact: Jeff Murphy, Community Development Director jeff.murphy@carlsbadca.gov, 442-339-2783 Subject: Processing Privately Initiated Applications to Amend the City’s General Plan and Zoning Designations to Allow for New Residential Development on Properties Not Included in the Housing Element Rezoning Program District: All Recommended Action Adopt a resolution directing the City Manager to process privately initiated applications that amend the city’s General Plan and/or zoning designations to allow for new residential development on properties not included in the city’s 2021-2029 Housing Element rezoning program following the city’s standard processes. Executive Summary The Community Development Department is receiving increasing interest from property owners and developers wanting to amend the city’s General Plan and zoning designations to rezone or upzone certain properties to accommodate additional housing units, beyond what was contemplated and approved as part of the city’s 2021-2029 Housing Element, its plan for housing. Staff are bringing this matter to the attention of the City Council for its awareness and to receive direction on the processing of formally submitted applications. Explanation & Analysis Background Following a multi-year public education and engagement effort that included input from a City Council appointed Housing Element Advisory Committee, the City Council adopted the 2021-2029 Housing Element on April 6, 2021. This element of the city’s General Plan set forth the programs and policies necessary to accommodate the city’s state housing obligations for the next eight-year housing cycle. The Housing Element was subsequently certified by the California Department of Housing and Community Development on July 13, 2021, and the city has remained in good standing with the state agency ever since. That means the city has timely and effectively adopted and implemented the requirements set forth in its state-certified Housing Element and has approved private housing development projects consistent with state housing laws and city’s housing plan. July 15, 2025 Item #13 Page 1 of 8 One of the programs included in the Housing Element was the requirement to rezone enough properties throughout the city to accommodate its Regional Housing Needs Allocation.1 After extensive public engagement efforts and public meetings, the City Council on Jan. 30, 2024, approved the rezoning of 18 public and private properties – ranging in size from three to 57 acres and located throughout the city – to accommodate as many as 2,578 new housing units. The timely completion of this program was a condition of Housing and Community Development’s certification of the city’s Housing Element. (Additional information about the Housing Element and rezoning effort is available in Exhibits 2 and 3.) Discussion Over the past several months, the Community Development Department has received informal inquiries (i.e., phone calls and emails) as well as preliminary review applications from property owners and developers interested in rezoning or upzoning their current land use designation to accommodate new and additional housing units. The department has opposed such requests, explaining that the City Council very recently (January 2024, as noted above) rezoned 18 sites throughout the city to allow for upwards of 2,578 new homes to accommodate its state housing obligations. The department also points out these sites are in addition to other sites located throughout the city that were already zoned for residential development. Those sites could accommodate an additional 2,833 new homes, for a potential total of 5,411 new units in the city.2 The value and benefit of a Housing Element is to evaluate and analyze housing needs and requirements comprehensively – a process that requires significant public vetting and public review. The proposed sites that are the subject of individual rezoning or upzoning requests have not benefitted from such review and input. Accordingly, staff encourage applicants and developers to wait to have their sites possibly considered for inclusion in the next housing cycle, which the city would start working on before the current housing cycle ends in 2029. Staff also explain that if a property owner or developer were to submit a formal application for a General Plan amendment and/or rezoning, staff would promptly bring forward the application with a recommendation of denial to the Planning Commission for its recommendation, which would then be brought to City Council for a decision. This expedited process is consistent with focusing on the development of existing residentially zoned sites and may reduce the financial risks associated with pursuing an application for a development not currently allowed for the development site. However, this expedited process does not prevent the Planning Commission from recommending and/or the City Council from deciding that the development application should not be denied and that it should continue following the standard application process (described in more detail 1 The allocation process is the part of state housing law used to determine how many new homes, and the affordability of those homes, each local government must plan for in their respective Housing Element. This process is repeated every eight years, and, for this housing cycle, the San Diego region is planning for the period from 2021 to 2029. The housing allocation assigned to Carlsbad for this housing cycle totaled 3,873 housing units (1,311 very low income, 784 low income, 749 moderate income, and 1,209 above moderate income). 2 Refer to the table on page 6 of Exhibit 2 for a breakdown of the total housing units by income category. July 15, 2025 Item #13 Page 2 of 8 below), with a final determination made following review and consideration of all relevant information and public input. Staff have received comments objecting to the planned expedited processing of these applications. The objections stem from the perception that a staff recommendation of denial, even solely for procedural reasons, is stigmatizing. Consequently, staff are seeking direction from the City Council on the desired processing for these applications. Options Follow standard application process Under standard processing procedures, staff review the General Plan amendment and/or rezone application to ensure compliance with city goals and policies. Applications allowing the associated housing development project are typically included as part of the application packet, which also gets reviewed against city standards and requirements. Typically, project applicants engage the community to solicit public input and ultimately an environmental analysis is conducted on the totality of the action to ensure compliance with the California Environmental Quality Act. The process is iterative and, given its complexity, processing applications can take upwards of 24 to 36 months and incur significant costs from studies and consultant work. Once the application processing is complete, applications are presented to the Planning Commission for recommendation and the City Council for the final decision. While the time commitment and cost can be significant, the property owner assumes all risks because, unlike with sites rezoned as part of the Housing Element implementation process, there is no state-mandated “by-right” approval for the application.3 After receiving a recommendation from the Planning Commission, the City Council will determine whether to approve or deny the requested General Plan amendment and/or rezone after reviewing and considering all relevant information and public input. For public awareness and as part of the application review, the Community Development Department will evaluate applications to ensure the proposed land use change will be impact neutral to the city. For example, appropriate improvements as determined by the city will be financed by the applicant or property owner(s), and that the rezoning will not have unacceptable adverse fiscal impacts to existing city services or residents. Each application to rezone must offset and fund the development project’s ongoing public services costs. Additionally, city staff will recommend that at least 20% of the total number of proposed housing units are dedicated for low- and very low-income households as a condition of the rezone application to help meet the city’s lower income housing requirements.4 Follow expedited application process If the City Council does not direct staff to follow the standard application process, staff will continue to encourage applicants and developers to wait to have their sites possibly considered 3 Under “by-right” approval, certain types of development projects are automatically permitted if they meet established zoning and building codes. 4 As part of the city’s last two Housing Elements, including the 2021-2029 Housing Element, private property owners that benefited from a density increase resulting from a General Plan/rezone were required to dedicate at least 20% of the total number of housing units for lower income households. This condition on developments helps the city meets its affordable housing obligations, particularly the 2,095 units the state assigned the city for low and very low-income households. July 15, 2025 Item #13 Page 3 of 8 for inclusion in the next housing cycle. If an applicant nonetheless submits a formal application for a General Plan amendment and/or rezoning, staff will follow the previously described expedited process. Fiscal Analysis There is no direct fiscal impact associated with this report Next Steps Staff will follow the City Council’s direction on processing these applications. Environmental Evaluation The proposed action that is being considered is covered by the general rule under California Environmental Quality Act (CEQA) Guidelines 15061(b)(3), where the activity is covered by the commonsense exemption that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Exhibits 1.City Council Resolution 2.April 6, 2021, staff report (on file in the Office of the City Clerk) 3.January 30, 2024, staff report (on file in the Office of the City Clerk) July 15, 2025 Item #13 Page 4 of 8 Exhibit 1 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, DIRECTING THE CITY MANAGER TO PROCESS PRIVATELY INITIATED APPLICATIONS THAT AMEND THE CITY’S GENERAL PLAN AND/OR ZONING DESIGNATIONS TO ALLOW FOR NEW RESIDENTIAL DEVELOPMENT ON PROPERTIES NOT INCLUDED IN THE CITY’S 2021-2029 HOUSING ELEMENT REZONING PROGRAM FOLLOWING THE CITY’S STANDARD PROCESSES WHEREAS, the City Council adopted on April 6, 2021, the 2021-2029 Housing Element which set forth the programs and policies necessary to accommodate the city’s state housing obligations for the next eight-year housing cycle; and WHEREAS, the 2021-2029 Housing Element was subsequently certified by the California Department of Housing & Community Development (HCD) on July 13, 2021, finding that the element complies with all relevant and required state housing laws; and WHEREAS, following extensive public engagement efforts and public meetings, the City Council on Jan. 30, 2024, approved the rezoning of 18 properties throughout the city to allow for new or expanded housing development consistent with its state certified 2021-2029 Housing Element; and WHEREAS, given the significant planning efforts, public engagement, environmental analysis and comprehensive approach to planning for housing throughout the city that went into the development of the 2021-2029 Housing Element and subsequent rezoning effort; and WHEREAS, privately initiated general plan amendments and/or rezoning applications that result in new or increased housing in the city did not benefit from such public review and vetting; and WHEREAS, individuals may nonetheless initiate applications to change their land use designation for their property within the City of Carlsbad and the city must consider and process their application under both state law and the Carlsbad Municipal Code. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1.That the above recitations are true and correct. July 15, 2025 Item #13 Page 5 of 8 2.The proposed action that is being considered is covered by the general rule under State CEQA Guidelines 15061(b)(3), where the activity is covered by the commonsense exemption that CEQA applies only to projects which have the potential for causing a significant effect on the environment. 3.Staff are directed to process privately initiated applications that amend the city’s General Plan and/or zoning designations to allow for new residential development on properties not included in the city’s 2021-2029 Housing Element rezoning program following the city’s standard processes. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the ___ day of _____, 2025, by the following vote, to wit: AYES: NAYS: ABSTAIN: ABSENT: ____________________________________ KEITH BLACKBURN, Mayor ____________________________________ SHERRY FREISINGER, City Clerk (SEAL) July 15, 2025 Item #13 Page 6 of 8 Exhibit 2 April 6, 2021, staff report (on file in the Office of the City Clerk) July 15, 2025 Item #13 Page 7 of 8 Exhibit 3 January 30, 2024, staff report (on file in the Office of the City Clerk) July 15, 2025 Item #13 Page 8 of 8 Equitable Land Use Alliance 300 Carlsbad Village Dr, PMB 108A-79 Carlsbad, CA 92008 July 13, 2025 Carlsbad City Council 1200 Carlsbad Village Drive Carlsbad, CA 92008 via email to council@carlsbadca.gov, clerk@carlsbadca.gov Re: July 15 2025 Council Meeting Item 13 - Processing Privately Initiated Applications Honorable Council Members, The Equitable Land Use Alliance (ELUA) appreciates the opportunity to provide comments on this important item of business. We commend the City staff for this thorough technical report.. As a general matter, ELUA respectfully urges the City Council to deny all individual requests to rezone or upzone outside of the established Housing Element update process. This comprehensive process allows both the public and the City to holistically assess the citywide impacts of such decisions, ensuring a more coordinated and transparent approach to land use planning. ELUA supports the use of the "expedited application process" for applications to amend the City’s General Plan and Zoning Designations to allow for new residential development on properties not included in the Housing Element Rezoning Program. We acknowledge the concerns of certain applicants that a denial in this expedited process might inadvertently reflect negatively on the overall merits of their application. To address this, we respectfully suggest that the City Council clearly state in the public record that such a denial is based solely on the application's inconsistency with the General Plan, and not on the application's inherent merits. Further, ELUA respectfully offers the following suggestions for applications allowed to continue to a full standard review: 1. Public outreach: While we recognize that the formal review process allows for public participation, ELUA believes that providing special notice of any expedited application hearing before the City Council to potentially affected members of the public (as defined by City Council Policy No. 84) would be beneficial. This would allow for early public input, even if a full Policy 84 public outreach is not yet completed. 2. Disclaimer: When the City Council determines that a rezoning/upzoning application should proceed to full review, we respectfully encourage a clear statement in the public record that this allowance does not signify an endorsement of the application. Rather, it indicates that the application is moving forward for further evaluation despite its initial inconsistency with the General Plan. Thank you for your time and consideration of these suggestions. Sincerely, ELUA Board of Directors Martin Danner Steve Linke, Ph.D. Kris Wright Diane Bedrosian, M.D. The Equitable Land Use Alliance is a local, nonpartisan nonprofit group. We are dedicated to educating, engaging, and empowering residents to take part in housing policy decisions. Our mission is to support community self-determination and encourage thoughtful, sustainable development. Equitable Land Use Alliance 2 1 City Council direction on processing requests to change zoning to allow for new housing not included in the Housing Element Jeff Murphy, Community Development Director July 15, 2025 ITEM 13 2 Background •2021-2029 Housing Element –City Council approved April 6, 2021 –State HCD certified July 13, 2021 •~50 housing related programs listed •Cornerstone program was citywide rezoning to accommodate RHNA ITEM 13: CITY COUNCIL POLICY DIRECTION 3 Background •Rezone program approved Jan. 30, 2024 –Several properties throughout the city already zoned to accommodate ~2,800 homes –18 public & private properties rezoned to accommodate an additional ~2,600 homes –Multi-year process with significant public input, engagement and review –Required under state law ITEM 13: CITY COUNCIL POLICY DIRECTION 4 Background •Inquires from property owners/developers interested in rezoning/upzoning property to accommodate more housing •Properties in question are not included or identified in the Housing Element ITEM 13: CITY COUNCIL POLICY DIRECTION 5 Approach •Community Dev. Dept. has opposed such requests… –Housing Element evaluated housing needs & requirements comprehensively –Sites identified in city Housing Element remain available for new housing –Encourage property owners/developers wait until next Housing Element update ITEM 13: CITY COUNCIL POLICY DIRECTION 6 Approach •Interest in pursuing despite department position •Expedited Application Process –Promptly schedule for Planning Commission recommendation –Promptly schedule for City Council decision –City Council may deny application or remand application back to staff for full processing –Helps saves time and reduces financial risks ITEM 13: CITY COUNCIL POLICY DIRECTION 7 Concern •Received objections to the expedited process •Staff recommendation of denial before full analysis is stigmatizing •Applicant assumes costs and risks and should be allowed to present a fully analyzed application for decision •While not in current Housing Element, sites may still be appropriate for housing ITEM 13: CITY COUNCIL POLICY DIRECTION 8 Policy Question •Should applications be processed following our standard permit review processes (adopt resolution) •Should applications be processed following the expedited permit review process (no action required) ITEM 13: CITY COUNCIL POLICY DIRECTION 9 City Council direction on processing requests to change zoning to allow for new housing not included in the Housing Element Jeff Murphy, Community Development Director July 15, 2025 ITEM 13