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HomeMy WebLinkAbout2020-10-07; Planning Commission; ; GPA 2019-0003 (PUB 2019-0009) – HOUSING ELEMENT UPDATE 2021-2029 Item No. Application complete date: n/a P.C. AGENDA OF: October 7, 2020 Project Planner: Scott Donnell Project Engineer: n/a SUBJECT: GPA 2019-0003 (PUB 2019-0009) – HOUSING ELEMENT UPDATE 2021-2029 – An informational presentation on the update to the General Plan Housing Element, a state- mandated process currently underway that will provide Carlsbad a housing strategy for the upcoming 2021-2029 housing cycle. Pursuant to Public Resources Code Section 21065, receiving this report does not constitute a “project” within the meaning of CEQA in that it has no potential to cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, and therefore, does not require environmental review. I. RECOMMENDATION That the Planning Commission receive an informational report on the 2021-2029 Housing Element Update. II. PROJECT DESCRIPTION AND BACKGROUND As required under state law, the city has begun updating the Housing Element in the city’s General Plan. The Housing Element will provide the city with a coordinated and comprehensive strategy for promoting the production of safe, decent and affordable housing for varying income levels within the community for the next eight years, from April 2021 through April 2029. The purpose of this report is to provide the Planning Commission with an informational presentation on the Housing Element Update, including the overall project, recent action by the City Council, and next steps. The presentation will assist the Planning Commission in its consideration of the project in 2021. Further information about the project is available on the city’s website at www.carlsbadca.gov/housingplan. Handouts from the website overviewing the update effort and relevant state mandates are attached. III. ANALYSIS For the 2021-2029 Housing Element planning period, the City Council must adopt an updated housing element by April 15, 2021. Prior to City Council review, the Planning Commission will consider the proposed document for recommendation. Public hearings for this purpose will be held in early 2021. The current City of Carlsbad Housing Element, adopted in 2017, identifies strategies and programs that focus on these five objectives to satisfy housing needs: • Conserving and improving existing affordable housing 5 GPA 2019-0003 (PUB 2019-0009) – HOUSING ELEMENT UPDATE 2021-2029 October 7, 2020 Page 2 • Maximizing housing opportunities • Assisting in the provision of affordable housing • Removing constraints to housing investment, and • Promoting fair and equal housing opportunities. Since the beginning of this year, the Housing Element Advisory Committee has met to assist in the Housing Element Update effort. In December 2019, the City Council appointed nine residents to the HEAC. Four of those residents serve on existing city commissions, including the Planning Commission. Recommendations of the HEAC have aided staff and will assist decision-makers, such as the Planning Commission and City Council, with their deliberations on the project next year. IV. ENVIRONMENTAL REVIEW Pursuant to Public Resources Code Section 21065, this action does not constitute a “project” within the meaning of CEQA in that it has no potential to cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, and therefore, does not require environmental review. ATTACHMENTS: 1. Our Home Our Future (informational bulletin) 2. How new state mandates impact Carlsbad’s Housing Plan (informational bulletin) OUR HOME OUR FUTURE Since 1969, California law has required that all cities and counties demonstrate how they will meet the housing needs of everyone in the community. The state forecasts the need for housing based on population projections, and then each region must show how it will accommodate that need. When these forecasts are updated, housing plans, known as housing elements, must be updated too. Let’s work together Decisions made over the coming months will shape our community for years to come. We need your input so Carlsbad’s updated housing plan reflects our community values. Here’s how you can get involved this year and next: •Learn about the city’s housing plan and the issues involved. •Attend scheduled meetings and events. •Participate in online surveys. •Encourage your friends and neighbors to get involved too. Updating Carlsbad’s Housing Plan... Together ATTACHMENT 1 Why a housing plan is important Providing housing to meet the needs of all income levels is critical to the social and economic health of a city. It can be challenging for coastal cities like Carlsbad to attract teachers, police officers and other middle-income professionals because of the high cost of housing. Children who grow up in Carlsbad have a hard time staying here due to housing affordability. Like cities throughout California, Carlsbad has seen an increase in homelessness and the cost associated with managing the effects on the community. Having an approved housing plan makes Carlsbad eligible for state grants to help fund infrastructure improvements. If Carlsbad doesn’t meet its deadline to create a plan to accommodate the state’s forecasted housing needs, the city could face fines and penalties until a plan is approved by the state. Without an approved housing plan, the risk of housing-related lawsuits increases, which threaten our ability to have a say in how or where housing should go. Who decides Carlsbad’s housing needs … Based on the state’s forecast, the San Diego County Association of Governments assigned a number of “housing units” to each city and the unincorporated parts of the county. This process is called the Regional Housing Needs Assessment, or RHNA. The formula for deciding the allocations is based on the number of jobs in each jurisdiction and availability of mass transit, among other factors. And what kind … To avoid an overconcentration of low income households in any one jurisdiction, SANDAG took into consideration existing low income housing and allocated more in areas that had less than the regional average, such as Carlsbad. Affordability for different income levels is just one way housing is categorized. Meeting the city’s housing needs also means evaluating demographic trends and other factors that affect how people live. For example, as the large Baby Boomer generation ages, there is an increased need for housing that meets the needs of older people. This includes homes that have so called “granny flats” and “mother in law” suites that allow older family members to remain independent longer, while saving money. State law also encourages cities to build denser housing near transit hubs. This helps alleviate traffic and cut down on air pollution caused by cars. WHEN WHERE The city doesn’t build the housing, but it does create a plan and regulations that provide opportunities for housing to be built by the private sector. Market conditions ultimately determine when and where housing is built. The updated housing plan must show the exact locations where future housing can be built and identify the potential number of homes that can be built at those locations. When it comes to these important decisions, the City of Carlsbad is not starting from scratch. Some of the basic guidelines that determine where housing could go include: Possibilities Areas that could be designated for additional housing include: •Vacant lots not designated as open space •Underutilized sites, such as lots with uses that are no longer needed or are in need of rehabilitation •Locations where housing could be become more dense than it is today •Locations near public transit and essential services like libraries and neighborhood serving retail centers •Areas where housing could be added to commercial buildings or in business parks, creating “live-work” neighborhoods •Sites where infrastructure, such as water and sewer service, can support more housing Restrictions Housing can’t be built in certain areas, such as properties: •With sensitive habitat or species •Where the topography isn’t conducive to building •That aren’t safe because they’re in a flood zone or high-fire area •Within areas deemed off limits by the airport because they’re in the flight path or noise would be too loud TIMELINE JAN 2020 Work begins on housing plan update APRIL 2021 Current housing plan expires Deadline for final approval of new plan Provide plan to the state for approval Summer 2020 Analysis of potential sites available for review Public input evaluating potential sites JAN - MAR 2021 Public hearings for final plan adoption JAN - MAR 2020 Citywide housing sites inventory starts Fall 2020 Draft plan and environmental document released for public review “ General Plan The housing plan is officially part of the city’s General Plan, a collection of policies that guide future development in Carlsbad. These policies are based on what the community told us was most important, which is summarized in the nine core values that make up the Carlsbad Community Vision. Growth Management In the mid-1980s, Carlsbad experienced a construction boom, causing residents to become concerned over the loss of our small town identity, disappearance of open space, and potential for growth to outstrip public facilities and services. The city worked with the community to develop an approach to managing growth that: • Cut the number of homes that would eventually be built in Carlsbad by half. • Split up the number of homes to be built among the different parts of the city. • Created standards for infrastructure and community amenities that must be met for new homes to be approved. • Guaranteed that nearly 40% of the city would be set aside as permanent open space. • Developers would pay for the infrastructure needed to support their developments. However, given the current housing crisis, the state legislature has recently passed actions that limit Carlsbad’s ability to impose building moratoriums and housing caps; tools that help implement the Growth Management Plan. As such, it is even more important that the city solicit input from the community on possible housing sites that meet the state’s site selection criteria, but also will not overburden our public facilities and services. In the future, Carlsbad will be a multi- generational community, with supportive services that accommodate the needs of the elderly as well as families with young children. Carlsbad will uphold universal design standards that foster accessibility, and will be a leader in innovative financing and design approaches to enhance availability of high-quality housing for all income levels. The housing supply will match the diverse population and workforce needs, essential to a sustainable economic future.” City of Carlsbad General Plan carlsbadca.gov/housingplan How new state mandates impact CARLSBAD'S HOUSING PLAN {city of Carlsbad Since 1969, California has required that all cities and counties adequately plan for their share of the state's growing housing needs. While cities do not build housing -that is the function of private developers -they do adopt plans, regulations and programs that provide opportunities for how and where housing development occurs. One of the most important housing policy documents used by jurisdictions is the General Plan; more specifically, the Housing Element of the General Plan. The General Plan serves as the"blueprint"for how a city will grow and develop and includes seven state required elements: land use, transportation, conservation, noise, open space, safety, and housing. The law mandating that housing be included as an element of each jurisdiction's General Plan is known as "Housing Element Law:' This information bulletin outlines how the state determines housing requirements for jurisdictions, the process localities must follow to secure a certified Housing Element, and the implications for failing to meet required state housing goals. I.THE REGIONAL HOUSING NEEDS ASSESSMENT The California Department of Housing & Community Development is responsible for developing state housing production goals. These goals represent the total number of housing units to be built within an eight year housing cycle for varying income groups. This process is referred to as the Regional Housing Needs Assessment. Once the RHNA is determined, HCD assigns the RHNA figures to the 21 different council of governments located throughout the state, who in turn assign the housing goals to their respective member cities and counties. Carlsbad's COG is the San Diego Association of Governments, who represents 18 cities and the County of San Diego. The RHNA is developed by HCD and distributed to the individual cities and counties by the COGs in accordance with four state directed RHNA objectives: •Plan for housing at all income levels/all jurisdictions •Balance jobs and housing •Focus development in urban areas •Protect rural areas, open space and habitat land These objectives are achieved using several regional and local factors and influences including: »Share of existing and projected population growth »Distribution of existing households (by income) »Existing and projected jobs »Persons per household »Opportunities and constraints for housing »Availability of land suitable for development »Preserved or protected lands »Availability of high quality transit corridors »Historic vacancy rates and loss of units »Housing cost burdens »Social equity adjustments II.HOUSING BASED ON INCOME CATEGORIES Under Housing Element Law, RHNA is assigned to four income groups or categories. Families with ... •Very low household income •Low household income •Moderate household income •Above moderate household income The household income for each of these categories is based on a percentage of the Area Median Income, as reflected in the chart below. Income Category Percent of AMI Very Low <50% Low 51 to80% Moderate 81 to 120% Above Moderate >120% These percentages are applied to the AMI for a region, not a specific city. Carlsbad falls under the AMI for San Diego County, which is currently $86,300 per year for a four-person household. In comparison, Carlsbad's median income is at$ 107,600. The income categories pursuant to the San Diego County AMI is reflected in the table below for a family of four: Income Category Percent of AMI Household Very Low <50% $53,500 Low 51 to80% $85,600 Moderate 81to 120% $103,550 Above Moderate >120%>$103,550 OUR HOME OUR FUTURE ATTACHMENT 2