HomeMy WebLinkAbout2021-02-25; Housing Element Update Status Report (Districts - All); Murphy, JeffTo the members of the:
COUNCIL
Date CA ✓ CC ✓
CM_ACM ~DCM {3) .✓ .
Council Memorandum
Feb.25,2021
To:
From:
Honorable Mayor Hall and Members of the City Council
Jeff Murphy, Community Development Director
{city of
Carlsbad
Memo ID #2021050
Via:
Re:
Gary Barberio, Deputy City Manager, Cijunity Services Branch
Geoff Patnoe, Assistant City Manager
Housing Element Update Status Report istricts -All}
This memorandum provides the latest information on the status of the Housing Element
Update.
Background
As reflected in a Council Memorandum dated Jan. 8, 2021 (Attachment A), staff submitted the
draft Housing Element Update to the California Department of Housing & Community
Development (HCD) for preliminary review and comment. The intent of this early review is for
HCD to identify any plan deficienc.ies so that they can be addressed by the city before the
Housing Element Update is presented to City Council for consideration. Once final action on
the Housing Element Update is taken by the City Council, which is anticipated on April 6, 2021,
the Housing Element Update must be formally submitted to HCD (April 15, 2021 deadline) for
final review and state certification.
Discussion
On Feb. 22, 2021, the city received HCD's preliminary comments on the current draft Housing
Element Update (Attachment B). In summary, HCD did not identify any fatal flaws in the city's
proposed draft Housing Element Update. They did, however, identify several sections and
programs that require additional information and/or clarification before they will consider the
document complete and certifiable. Staff intends to address these required changes before the
Planning Commission and Housing Commission hearings occur next week. Given the timing of
which the HCD comments were received, staff's proposed modifications will likely be presented
to the respective commissions via an Additional Materials Memorandum following the posting
of the related Staff Reports.
A comment in the HCD letter worth noting involves the city's Growth Management Plan (GMP)
(comment 2, second bullet), which requires that those limitations on land use approvals
involving housing development projects be suspended immediately. HCD specifically calls out
the enforcement of the GMP housing caps, moratorium restrictions, and the requirement for
approval of allocations from the city's excess dwelling unit bank. While the City Council has
previously be~n briefed on SB330 and Housing Element law, and has adopted resolutions
Community Services Branch
Community Development Department
1635 Faraday Avenue I Carlsbad, CA 92008-7314 I 760-573-3927 t
Council Memo -Housing Element Update Status Report (Districts -All)
Feb.25,2021
Page 2
suspending these requirements on recent actions (i.e., public road exemptions), staff, working
closely with the City Attorney's Office, will be crafting a resolution that speaks directly to HCD's
comment. Staff intends to include the resolution as part of the April 6, 2021, Staff Report.
Next Steps
The following are upcoming key milestones
Date Milestone
March 3 Planning Commission hearing; public testimony and recommendation
March 4 Housing Commission hearing; public testimony and recommendation
April 6 City Council hearing; public testimony and decision
April 15 Housing Element submitted to HCD for final approval
April 15 Staff will reinitiate mapping efforts to bring the re-zonings to City Council by end
of the 2021 calendar year
Attachments: A. City Council Memorandum, dated Jan. 8, 2021
B. HCD Letter, dated Feb. 22, 2021
cc: Scott Chadwick, City Manager
Celia Brewer, City Attorney
Babaq Taj, Engineering Manger
David Graham, Chief Innovation Officer
Faviola Medina, City Clerk Services Manager
Gary Barberio, Deputy City Manager, Community Services
James Wood, Environmental Manager
Jason Haber, Intergovernmental Affairs Director
John Maashoff, Public Works Manager
Judy Von Kalinowski, Human Resources Director
Kristina Ray, Communication & Engagement Director
Kyle Lancaster, Parks & Recreation Director
Laura Rocha, Deputy City Manager, Administrative Services
Maria Callander, Information Technology Director
Michael Calderwood, Fire Chief
Morgen Fry, Executive Assistant to the City Manager
Neil Gallucci, Police Chief
Paz Gomez, Deputy City Manager, Public Works
Ryan Green, Finance Director
Sheila Cobian, Assistant to the City Manager
Suzanne Smithson, Library & Cultural Arts Director
Tom Frank, Transportation Director
Vicki Quiram, Utilities Director
Council Memo -Housing Element Update Status Report (Districts -All)
Feb.25,2021
Page 3
Ron Kemp, Assistant City Attorney
Don Neu, City Planner
Eric Lardy, Principal Planner
Scott Donnell, Senior Planner
To the members of the:
CITY COUNCIL
Date l-&21CA ✓ CC ~/
CM v ACM ✓ocM {3) ~ --
Jan. 8, 2021
To:
From:
Via:
Re:
Council Memorandum
Honorable Mayor Hall and Members of the City Council
Jeff Murphy, Community Development Director
Gary Barberio, Deputy City Manager, Community Services
Geoff Patnoe, Assistant City Manager @_
Housing Element Update -Status Report
ATTACHMENT A
{city of
··Carlsbad
Memo ID# 2021005
This memorandum provides information on the status of the Housing Element Update.
Background
Among other responsibilities, the California Department of Housing & Community
Development (HCD) 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. The process of developing and assigning these housing units to local
jurisdictions is referred to as the Regional Housing Needs Assessment (RHNA). As required
under state law, jurisdictions throughout the state (including the city) have begun updating
their respective Housing Elements to show how they intend to accommodate their housing
obligations for the upcoming housing cycle. For the San Diego region, the housing cycle is
April 2021 through April 2029. For more information on the RHNA process, please refer to the
attached informational bulletin (Attachment A).
In summary, the Housing Element provides 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, including policies and programs on how it will
accommodate its RHNA. The Housing Element itself is part of the city's General Plan and
includes the following components:
• An assessment of the demographics and housing needs in the city;
• Review of accomplishments from the previous housing element;
• An inventory and analysis of possible sites that could accommodate the RHNA;
• Analysis of potential constraints on housing; and,
• A listing of policies and programs to be implemented to meet required housing
obligations.
One of the most labor intensive and controversial components of the process is the inventory
and analysis of sites that could be considered for meeting the city's RHNA. This is the portion of
the Housing Element update process where sites are identified that could potentially
Community Services Branch
Community Developn,ent Department
1635 Faraday Avenue I Carlsbad, CA 92008-7314 I 760-573-3927 t
Council Memo -Housing Element Update -Status Report
Jan.8,2021
Page 2
accommodate the city's assigned housing allocations, while also meetingHCD's minimum
density requirements and strict site selection criteria.
However, the inventory only reflects a collection of sites that could be considered for future
housing opportunities. If the sites listed in the inventory need to be rezoned to accommodate
the state's minimum density requirements, then a corresponding amendment to the
jurisdiction's Land Use Element map of the General Plan is required along with the zoning
amendment. Under state law, a jurisdiction is not required to have the rezonings completed at
the time the Housing Element is due to HCD. The state gives cities up to three years to
complete the necessary changes to their Land Use Element map (Government Code
§65583(c}(1)(A)}.
Cities within the San Diego region are required under state law to adopt and submit their
respective Housing Element to HCD for review and final approval by April 15, 2021. The city is
on track to meet this deadline. While most cities elect to process updates to their Housing
Element and Land Use Element map concurrently to save time and avoid certain state
implications, the city will not be doing this concurrent processing for the reasons discussed
below. Additional background is also available in the City Council Staff Report, dated
Aug. 27, 2020 (Attachment B).
Discussion
A. Housing Element Update
On Sept. 10, 2019, the City Council established the Housing Element Advisory Committee
(HEAC), a nine-member committee made up of City of Carlsbad residents charged with the
oversight of the Housing Element update effort. The HEAC held a total of 14 public meetings
in 2020 where they and the public were educated on Housing Element law and HCD
requirements, varying programs and policies that promote and encourage housing
productions, minimum requirements of housing elements, and approaches and
methodologies for site selection.
On Nov. 19, 2020, a joint meeting of the HEAC and Housing Committee was held where a
draft of the Housing Element Update was introduced. To provide additional time to review
the document, meetings were then he,ld on Nov. 30, 2020, and Dec. 3, 2020, to solicit input
and comments from the HEAC and Housing Committee, respectively. On Dec. 14, 2020, the
HEAC made their final com rents/amendments to the draft Housing Element, endorsed the
document and directed staff to submit the draft Housing Element to HCD for preliminary
review.
On Dec. 24, 2020, after revising the document to address comments from the HEAC,
Housing Commission, City Attorney's Office, and outside legal counsel who specializes in ·
Housing Element law, staff officially sent HCD the draft Housing Element. HCD has 60 days
to review the document and provide preliminary feedback to the city on any deficiencies.
City staff has been informally working with HCD staff over the past few months to get early
Council Memo -Housing Element Update -Status Report
Jan.8,2021
Page 3
input on the more complex and critical sections of the draft document; specifically, the sites
inventory and sections covering impediments to fair housing. We are hopeful that these
informal discussions will minimize the number of issues HCD raises with our draft and
reduces their overall review time. The "Next Steps" section of this memo outlines the series
of public engagement and public hearing milestones that remain for the Housing Element.
B. Land Use Element Map Amendments
There have been several factors affecting the processing schedule for amending the land
use map. Some of the challenges that staff has experienced over the past year include
delays in SAN DAG traffic modeling, difficulty confirming property owner interest in rezoning
their property for housing, and compliance with new state housing laws, particularly those
affecting the eligibility of housing sites. Additionally, as with many city functions and
services, the pandemic has hindered our ability to utilize the more traditional "face-to-face"
public engagement exercises and meetings that our community members have grown
accustomed to over the years. While we have had a certain level of success with video
conferencing, surveys and YouTube videos, the inability to ~alk to people and physically
show maps impacted public participation. Also, COVID-19 related city priorities and needs
have pulled staff away from this effort over the past year, which also adversely impacted
the processing schedule.
It was staff's intention to include the necessary rezonings (Land Use Element map
amendments) as ·part of the Housing Element update. However, for the reasons specified
·above, staff were unable to timely identify appropriate sites and conduct the appropriate
level of environmental review needed to provide the City Council with reasonable options
for consideration by April 2021.
The city, in collaboration with other jurisdictions in similar situat ions, SAN DAG and the
League of California Cities, has petitioned the state to extend the Housing Element deadline
by six months to solicit this needed public engagement and input. Unfortunately, HCD and
the Governor's Office has not been supportive of any extension.
As referenced above, while state law allows the rezoning to be completed three years after
the official filing of the Housing Element, there are certain state implications that may affect
the city's later processing of projects on the rezoned sites. All the sites to be rezoned, such
as nonvacant sites identified in the prior Housing Element, vacant sites identified in the
prior two Housing Elements, and all of the sites to be upzoned, must allow residential use
"by right" at specified densities for housing developments in which at least 20% of the units
are affordable to lower income households. "By right" means that, with certain exceptions
(e.g. a subdivision map application), the city cannot require a discretionary permit as part of
the housing project application or require review under the California Environmental
Quality Act (CEOA). Design review is still permitted. Accordingly, it is important the city
conduct detailed environmental review of each site before the rezoning is completed and
adopt "objective" design standards and applicable mitigation measures.
Council Memo -Housing Element Update -Status Report
Jan. 8, 2021
Page 4
Next Steps
The following are upcoming key milestones:
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March 3 Planning Commission hearing; public testimony and recommendation
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April 6 City Council hearing; public testimony and decision
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April 15 Staff will reinitiate mapping efforts to bring the rezonings to City Council by end of
the year
Attachments: A. Informational Bulletin: How new state mandates impact Carlsbad's Housing
Plan
B. City Council Staff Report, dated Aug. 27, 2020 (on file in the Office of the City
Clerk): http://edocs.carlsbadca.gov/HPRMWebDrawer/RecordHTML/586001
cc: Scott Chadwick, City Manager
Celia Brewer, City Attorney
Bob Vacchi, Assistant Director, Community Development
Kristina Ray, Communication & Engagement Director
Don Neu, City Planner
Scott Donnell, Senior Planner
How new state mandates impact
CARLSBAD'S HOUSING PLAN
Since 1969, Callfornia 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 jurisdictjon's General Plan is known as "Housing Element Law:'
This information bulletin outlines how the state determines housil'1g requirements for jurisdictions, the process localities must follow
to secure a certified Housing Element, and the impllcations 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.
r)rc?d.f f,t;~ifg6fY:~ :: lf lj:f 1i:Mfrl•:;:;:irer:2~@9t#;Mi)
l Very Low ______ ---·· ____ <50%
Low 51 to 80%
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:
~!;i~[~~!i~t~9piY~imrntmn:1:1:l:li:i:tm:rnmm::~ei~~nf:~fAMi:!im~iii}!i!2::mJ~;il:~W~~Wd1~:~
i Very Low . <50% · $53,500 i !-L~w ··--51 to 80% . ---·-·-·-· $85,600 i
[ __ Moderate 81 to 120% $103,550 :
/ Above_Moderate _, . __ >120% • >$103,550 :
OUR HOME OUR FUTURE
m. DENSITY AND AFFORDABILITY
The foundation of Housing Element Law is based on the
premise that density is a proxy for affordability. The idea
being, the more housing units on a site (density) translates
to lower construction costs per unit, which translates to
lower rental/sale prices of those units (affordability). As such,
HCD assigns minimum density figures to each income
category as reflected below.
.. ;J·,m~ri:tR#~~~I:1!
Very Low $53,500 --------+----~·-~~-·~·--"'"'"·-· ·-·-··"'"'·'""'-·
Low • $85,600
Moderate $103,550
Above Moderate >$103,550
30 du/ac
30 du/~c
15 du/ac
<15 du/ac , __ ... _ .. _ .. _._ .. _ .. _·----~-------'------................................ .
1 du/ac = Dwelling unit per 1 acre of land
Most cities and counties can attest that higher density ·
development alone rarely translates to housing that is
affordable at the targeted income categories. As such, the
state requires that cities develop and implement programs
that will help facilitate affordable housing sales/rental costs
(i.e., inclusionary housing requirements, locally-funded
subsidies), but the programs cannot be too onerous as to
make the housing development infeasible to construct
(i.e., require that all higher-density projects be restricted as
affordable).
Until state law changes, this is the formula that cities and
counties must use when planning for housing under state
Housing Element Law.
IV. THE LOCAL HOUSING ELEMENT
Once a jurisdiction receives its RHNA allocations, it
must update its General Plan and Housing Element to
demonstrate how the jurisdiction, particularly through
poiicies and zoning, can or will accommodate the RHNA.
Generally, a Housing Element must include the following:
• Review of previous Housing Element
Assessment of housing needs
• Inventory and analysis of adequate sites
• Analysis of potential constraints
• Housing policies and programs
Quantified objectives
One of the most labor intensive and controversial
components of the process is the inventory and analysis of
adequate sites.
Each jurisdiction must evaluate the Land Use Element of
their General Plan to determine whether there is enough
land available, with adequate zoning (minimum density as
described in Section 111), to accommodate their assigned
RHNA allocation for each income category. If unable to
accommodate the housing goals, the jurisdiction must
rezone enough land to meet the RH NA obligation.
In addition to adequately zoning sites, the law requires
that each jurisdiction look for ways to streamline permit
processes and remove processing barriers in order to
facilitate the creation of affordable housing.
A ministerial process with reduced fees and development
incentives (i.e., increased density above plan allowance,
waiver of design standards like parking or setbacks,
expedited permit review) for affordable housing projects
is highly encouraged by HCD.
Ultimately, an effective Housing Element provides the
necessary conditions for developing and preserving an
adequate supply of housing, including housing affordable
to seniors, families, and workers.
The update plan provides the opportunity to develop
housing and land use strategies to reflect local changing
needs, resources, and conditions and provides a vehicle
to adopt approaches addressing state driven regulations
related to sustainability and environmental concerns.
Jurisdictions may also use the Housing Element as an
opportunity to complement their economic development
goals with their housing goals.
Community Development Department I 1635 Faraday Ave. I Carlsbad, CA 92008 I www.carlsbadca.gov Page 2of 4
V. HCD HOUSING
ELEMENT CERTIFICATION
Once updated, Housing Elements must be reviewed
and approved by HCD and then adopted by the local
jurisdiction (City Council) prior to state mandated deadlines
(described in Section VIII). Failure to timely complete this
process will result in several penalties, as highlighted in the
section below.
VI. PENALTIES FOR NONCOMPLIANCE
& LIMITATIONS
Failing to meet th_f:! state requirements can result in
significant penalties. Given the current housing crisis
in California, each year the state legislature introduces
new laws that increase and expand the penalties for
noncompliance as well as impose limitations on local
controls affecting housing production. Below are a few of
the more significant State acts.
Housing Accountability and Affordability Act
If HCD finds that a jurisdiction's RHNA goals are not
being timely satisfied, SB 35 requires cities and counties
to streamline review and approval of eligible affordable
housing projects by providing a ministerial approval
process, exempting such projects from environmental
review under CEQA and public hearing process. Refer to
the City Info Bulletin on this act.
Building Homes and Jobs Act
Under Senate Bill 2, jurisdictions that do not have an
approved HCD certified Housing Element are not eligible
for grant funding. Carlsbad's current housing element is
HCD certified, which allowed the city to apply for and be
awarded an SB 2 grant in the amount of $310,000.
Housing Development and Financing Act
Under Assembly Bill 101, jurisdictions failing to timely adopt
a local Housing Element may be fined tens of thousands of
dollars per month until HCD determines compliance.
Housing Crisis Act
SB 330introduces an even more expedited review process
for residential development projects than SB 35 and
prohibits cities from imposing growth caps or moratoriums
on housing projects or plans. This will likely impact how we
can implement Carlsbad's Growth Management Plan.
Residential Density and Affordability Act
Under SB 166, a city cannot reduce residential density on a
property without concurrently rezoning another property
to make up the lost units. Furthermore, if a city approves
a project that results in a density lower than the housing
plan identified, it must rezone another property to make
up the difference. ·
Potential lawsuits
Many cities without an approved Housing Element have
been sued by developers and/or affordable housing
advocates, resulting in decisions unfavorable to the city.
For example:
✓ Courts have suspended a jurisdiction's local land
use authority via a court ordered moratoria; the city
was unable to issue building permits until a Housing
Element was certified and approved. (City of Pasadena)
✓ Courts have assumed land use control over all housing ·
development permits. Under this scenario, the courts
could approve a housing development project that may
not fit the character of the community. (City of Fremont}
✓ Courts have imposed aggressive timelines for a
jurisdiction to approve a Housing Element (with
threats of court-assumed land use control for
noncompliance), thereby limiting community input in
the housing plan development. (City of Encinitas)
✓ The State Attorney General has filed suit against cities
that do not have an approved or compliant Housing
Element. The implications of the lawsuits are currently
unknown. (City of Huntington Beach)
✓ In virtually all cases, the litigation resulted in the
c1ty paying significantfmancial penalties and/or
substantive attorney fees.
Community Development Department I 1635 Faraday Ave, I Carlsbad, CA 92008 I www.carlsbadca.gov Page 3 of ,4
VII. RELATED STATE HOUSING
PROGRAMS/LAWS
Beyond the mandates required under the Housing Element
Law, the state has adopted other regulations and programs
that encourage housing production.
State Density Bonus Law
Density Bonus is a state law that allows a developer to
increase density beyond that allowed under a city's local
land use plan. An applicant can also receive reductions
in required development standards such as setbacks,
height limits and parking requirements. In exchange for
1 the increased density, a certain number of the new homes .
must be reserved for very low, low, or moderate-income
households or for seniors.
Accessory Dwelling Units
The state has found that allowing Accessory Dwelling Units
in residential zones where primary residences are already
allowed provides additional housing throughout California.
In recent years the state has continued to revise and update
the programs around ADUs, limiting local city control of
them, to more widely allow for ADUs to address housing
production. Refer to the city informational bulletin on ADUs.
VIII. 2021-2029 HOUSING CYCLE
The RHNA process for the next (sixth) Housing Element
cycle is currently in process and will cover the period from
April 2021 -April 2029. The RH NA process can be generally
categorized into the steps bulleted below.
It is important to note that the RHNA process is also being
conducted in conjunction with the development of the
2050 Regional Transportation Plan and its Sustainable
Communities Strategy in accordance with SB 375 (See
Section IX for more on this process).
RHNA Methodology and Allocation
July 2018 -November 2019
This step includes the development of the methodology in
which RHNA will be distributed by SANDAG. Public review
of the draft methodology was completed in September
2019, with HCD approval in November 2019. Currently,
city staff coordinates and collaborates with the SAN DAG
and regional jurisdictions through its participation in the
SAN DAG RHNA Subcommittee meetings.
RHNA Distribution and Allocation
November 2019-February 2020
Distribution of the draft RHNA to local jurisdiction
occurred in November 2019. In January 2020 the following
four jurisdictions filed appeals on the RHNA allocation:
Coronado, Imperial Beach, Lemon Grove and Solana Beach.
Results of the appeal are pending.
Certified local Housing Element
February 2020 -April 2021
Each city and county has until April 2021 to process a
Housing Element update using their assigned RHNA
allocation (this period includes HCD review and City
Council adoption).
!X. REGIONAL TRANSPORTATION PLAN
AND SUSTAINABLE COMMUNITIES
STRATEGY
The Regional Transportation Plan is a federally required
long range transportation plan prepared by SANDAG that
is updated every four years, and includes projections of
population, household, employment growth and travel
demand, along with a specific list of proposed projects
to be funded. In Carlsbad, the following local projects are
included in the RTP:
Carlsbad Boulevard realignment
• Village/Barrio roundabouts
• Road extensions for College Boulevard and
Poinsettia Lane
• Road widenings for El Camino Real
• Road widenings for Avenida Encinas
• Other improvements at various locations:
» Intersection improvements
>) Turn lane improvements
)> ADA improvements
» Complete street improvements
)> Traffic signal system improvements
» Pedestrian and bicycle improvements
» Lighting improvements
» Pavement management program
Pursuant to SB 375, SANDAG must also develop a
Sustainable Communities Strategy to integrate land
use and transportation strategies that will achieve ·
California Air Resources Board greenhouse gas
emissions reduction targets.
The SCS must demonstrate on a regional level, those
areas sufficient to house all the population of the
region, including the eight year projection of the RHNA.
Both the RTP/SCS and RHNA have used local input as
the basis for future demographic projections, including
household growth.
Community Development Department I 1635 Faraday Ave. I Carlsbad, CA 92008 I www.carlsbadca.gov Page4 of 4
STATE OF CALIFORNIA -BUSINESS CONSUMER SERVICES AND HOUSING AGENCY
DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT
DIVISION OF HOUSING POLICY DEVELOPMENT
2020 W. El Camino Avenue, Suite 500
Sacramento, CA 95833
(916) 263-2911 / FAX (916) 263-7453
www.hcd.ca .qov
February 22, 2021
Jeff Murphy, Director
Communify Development Department
City of Carlsbad
1200 Carlsbad Village Drive
Carlsbad, CA 92008 .
Dear Jeff Murphy:
RE: Review of Carlsbad's 6th Cycle (2021-2029) Draft Housing Element
ATTACHMENT B
Thank you for submitting the City of Carlsbad's (City) draft housing element received for
review on December 24, 2020 along with revisions on February 8, 2021. Pursuant to
Government Code section 65585, subdivision (b), the California Department of Housing
and Community Development (HCD) is reporting the results of its review. Our review
was facilitated by various communications throughout 2020 and to date. In addition,
HCD considered comments from the People for Ponto, pursuant to Government Code
section 65585, subdivision (c).
The draft element addresses many statutory requirements; however, revisions will be
necessary to comply with State Housing Element Law (Article 10.6 of the Gov. Code).
The enclosed Appendix describes revisions needed to comply with State Housing
Element Law.
Government Code section 65588, subdivision (e)(4), requires a jurisdiction that failed to
adopt its housing element within 120 calendar days from the statutory due date to revise
its element every four years until adopting at least two consecutive revisions by the
applicable due dates .. The City is subject to the four-year revision requirement and has
satisfied the first four-year update requirement. Provided the City adopts its 6th cycle
housing element by the due date (April 15, 2021 ), the City will satisfy the second
consecutive four-year update and return to an eight-year update cycle. Please reach out
to HCD with any questions regarding timing and meeting the second four-year update
requirements.
Public participation in the development, adoption and implementation of the housing
element is essential to effective housing planning. Throughout the housing element
process, the City should continue to engage the community, including organizations that
represent lower-income and special needs households, by making information regularly
available and considering and incorporating comments where appropriate.
Jeff Murphy,. Director
Page 2
Several federal, state, and regional funding programs consider housing element
compliance as an eligibility or ranking criteria. For example, the CalTrans Senate Bill
(SB) 1 Sustainable Communities grant; the Strategic Growth Council and HCD's
Affordable Housing and Sustainable Communities programs; and HCD's Permanent
Local Housing Allocation consider housing element compliance and/or annual reporting
requirements pursuant to Government Code section 65400. With a compliant housing
element, the City will meet housing element requirements for these and other funding
sources.
HCD appreciates your hard work and effort; the exemplary cooperation and diligence of
the Carlsbad housing element team: including Don Neu, Jeff Murphy, Scott Donnell and
Eric Lardy. We are committed to assist the City in addressing all statutory requirements
of State Housing Element Law. If you have any questions m need additional technical
assistance, please contact Sohab Mehmood, of our staff, at
Sohab. Mehmood@hcd.ca .gov.
Sincerely,
Shannan West
Land Use & Planning Unit Chief
Enclosure
APPENDIX
CITY OF CARLSBAD
The following changes are necessary to bring the City's .housing element into compliance with
Article 10.6 of the Government Code. Accompanying each recommended change, we cite the
supporting section of the Government Code.
Housing element technical assistance information is available on HCD's website at
http://www.hcd.ca.gov/community-development/housing-element/housirig-element-
memos.shtml. Among other resources, the housing element section contains HCD's latest
technical assistance tool, Building Blocks for Effective Housing Elements (Building Blocks),
available at http://www.hcd.ca .gov/community-development/building-blocks/index.shtml and
includes the Government Code addressing State Housing Element Law and other resources.
A. Housing Needs, Resources, and Constraints
1. A city's or county's inventory of land suitable for residential development pursuant to
paragraph (3) of subdivision (a) of Section 65583 shall be used to identify sites
throughout the community, consistent with paragraph (10) of subdivision (c) of
Section 65583, that can be developed for housing within the planning period and
that are sufficient to provide for the jurisdiction's share of the regional housing need
for all income levels pursuant to Section 65584 (Gov. Code, § 65583.2(a).)
The analysis shall determine whether the inventory can provide for a variety of types
of housing, including multifamily rental housing, factory-built housing, mobilehomes,
housing for agricultural employees, supportive housing, single-room occupancy
units, emergency shelters, and transitional housing (Gov. Code, § 65583.2(c).).
Affirmatively Furthering Fair Housing: The element does not address this
requirement. The element must identify sites throughout the community to foster
inclusive communities and affirmatively further fair housing.
Zoning for a Variety of Housing Types: The element must demonstrate zoning for a
variety of housing types, as follows:
• Emergency Shelters: The element describes a zone to permit emergency
shelters without discretionary action but must also evaluate the available
acreage for characteristics like parcel size or potential redevelopment or
reuse opportunities and describe development standards. The analysis must
also address the appropriateness of allowable uses, particularly as noted on
page 167, the presence of chemicals or hazardous materials and whether
parking requirements are limited to staff working in the emergency shelters
and do not require more parking than other residential or commercial uses in
the zone. The element must include programs as appropriate based on the
outcomes of this analysis.
• Permanent Supportive Housing: Supportive housing shall be a use by-right in
zones where multifamily and mixed uses are permitted, including
nonresidential zones permitting multifamily uses pursuant to Government
Code section 65651. While the element includes an indication that zoning will
be amended to comply with housing laws (Program 2.13) regarding
supportive housing, the element must clearly demonstrate compliance with
this requirement by including specificity in the program.
Electronic Sites Inventory: Pursuant to Government Code section 65583.3, the City
must submit an electronic sites inventory with its adopted housing element. The City
must utilize standards, forms, and definitions adopted by HCD. Please see HCD's
housing element webpage at https://www.hcd.ca.gov/community-
development/housing-element/index.shtml#element for a copy of the form and
instructions. Finally, the City can reach out to HCD at sitesinventory@hcd.ca.gov for
technical assistance.
2. An analysis of potential and actual governmental constraints upon the maintenance,
improvement, or development of housing for all income levels, including the types of
housing identified in paragraph (1) of subdivision (c), and for persons with disabilities
as identified in the analysis pursuant to parf!.graph (7), including land use controls,
building codes and their enforcement, site improvements, fees and other exactions
required of developers, local processing and permit procedures, and any locally
adopted ordinances that directly impact the cost and supply of residential
development. The analysis shall also demonstrate local efforts to remove
governmental constraints that hinder the locality from meeting its share of the
regional housing need in accordance with Section 65584 and from meeting the need
for housing for persons with disabilities, supportive housing, transitional housing,
and emergency shelters identified pursuant to paragraph (7). (Gov. Code, § 65583,
subd. (a)(5).)
Land Use Controls: The element must' identify and analyze all relevant land use
controls for impacts as potential constraints on the cost, supply, timing and approval
certainty of housing. Specifically, the element must analyze:
• Definition of Density: Based on communications with the City, the zoning
code implements a definition of density that potentially limits the number of
allowable units in a development. The element must analyze this definition
and include programs as appropriate. In additions, while the element
includes Program 2.3 to update zoning to implement State Density Bonus·
Law (Government Code section 65915), please note, pursuant to
Government Code section 65915, subdivision (f), density bonus means a
density increase over the maximum allowable gross residential density.
• Growth Management Program: Based on communications, HCD
understands the City continues to require an allocation under the Growth
Management Program. Any limits on the number of land use approvals or
permits involving housing development projects, including housing caps,
moratorium and requiring unit allocations, must be void pursuant to
Government Code section 66300, subdivision (b)(1)(D), As a result, this
activity must immediately be suspended.
Processing and Permit Procedures: The element indicates a Site Development Plan
(SOP) is required and in some cases, the Planning Commission or City Council may
impose special conditions or requirement that are more restrictive than development
standards for a variety of provisions such as density, parking and other provisions
that can limit the supply of housing or impact costs and approval certainty. The
HCD Review of Ca rlsbad's 6th Cycle Housing Element
February 22, 2021
. element must include an analysis of this requirement and specific programs to
address and remove or mitigate the requirement.
Housing for Persons with Disabilities: The element shows (Table 10-34) that group
homes for seven or more persons are excluded in some zones allowing residential
uses (e.g., R-E, R-A, R-1 and R-2 zones). In addition, the element notes parking
requirements of two space plus 1 space per three beds for residential care facilities.
Both of these requirements must be evaluated as potential constraints and programs
added or modified as appropriate.
8 . Housing Programs
1. Include a program which sets forth a schedule of actions during the planning period,
each with a timeline for implementation, which may recognize that certain programs
are ongoing, such that there will be beneficial impacts of the programs within the
planning period, that the local government is undertaking or intends to undertake to
implement the policies and achieve the goals and objectives of the housing element
through the administration of land use and development controls, the provision of
regulatory concessions and incentives, and the utilization of appropriate federal and
state financing and subsidy programs when available. The program shall include an
identification of the agencies and officials responsible for the implementation of the
various actions. (Gov. Code, § 65583, subd. (c).)
Programs must include definitive implementation timelines to demonstrate a
"beneficial impact" in the planning period. Several programs include timelines such
as "ongoing" despite having clear deliverables in the planning period. These
programs must be revised with discrete timelines (e.g., annual, within 1 year).
Program to be revised include: 1.5 (Flexibility in Development Standards), 1.8
(Mixed Use), 2.4 (City Initiated Development), 2.5 (Land Banking) and 2.9
(Assistance for Special Needs Populations).
2. Identify actions that will be taken to make sites available during the planning period
with appropriate zoning and development standards and with services and facilities
to accommodate that portion of the city's or county's share of the regional housing
need for each income level that could not be accommodated on sites identified in the
inventory completed pursuant to paragraph (3) of subdivision (a) without rezoning,
and to comply with the requirements of Section 65584.09. Sites shall be identified as
needed to facilitate and encourage the development of a variety of types of housing
for all income levels, including multifamily rental housing, factory-built housing,
mobilehomes, housing for agricultural employees, supportive housing, single-room
occupancy units, emergency shelters, and transitional housing. (Gov. Code, §
65583, subd. (c)(1).)
HCD Review of Carlsbad's 5t11 Cycle Housing Element
February 22, 2021
As noted in the Finding A 1, the element does not include a complete analysis.
Based on the results, programs may need to be added, or revised. In addition:
City-owned Sites: The element identifies several city-owned sites that are essential
to demonstrating adequate sites to accommodate the housing needs of lower
income households. As a result, the element must include specific commitment with
timelines to encourage development on the City owned site. Actions include
additional incentives, schedule for development, significant outreach with developers
of affordability housing, reducing fees and seeking financing or supporting
applications for funding.
Water and Sewer Priority: Given the City controls most water service, the element
must include a specific program to establish written procedures to grant priority to
developments with units affordable to lower-income households.
3. Address and, where appropriate and legally possible, remove governmental and
nongovernmental constraints to the maintenance, improvement, and development of
housing, including housing for all income levels and housing for persons with
disabilities. The program shall remove constraints to, and provide reasonable
accommodations for housing designed for, intended for occupancy by, or with
supportive services for, persons with disabilities. Supportive housing, as defined in
Section 65650, shall be a use by right in all zones where multifamily and mixed uses
are permitted, as provided in Article 11 (commencing with Section 65650). (Gov.
Code,§ 65583, subd. (c)(3).)
As noted in the Finding A2, the element does not include a complete analysis and
based on the results of a complete analysis, may need to add or revise programs.
4. Promote and affirmatively further fair housing opportunities and promote housing
throughout the community or communities for all persons regardless of race,
religion, sex, marital status, ancestry, national origin, color, familial status, or
disability, and other characteristics protected by the California Fair Employment and
Housing Act (Part 2. 8 (commencing with Section 12900) of Division 3 of Title 2),
Section 65008, and any other state and federal fair housing and planning law. (Gov.
Code,§ 65583, subd. (c)(5).)
Affirmatively further fair housing in accordance with Chapter 15 (commencing with
Section 8899.50) of Division 1 of Title 2. (Gov. Code, § 65583, subd. (c)(10)(A)).
While the element lists statewide impediments to fair housing, the element must also
list and prioritize contributing factors to fair housing issues that are specifically
tailored to Carlsbad. Contributing factors create, contribute to, perpetuate, or
increase the severity of fair housing issues and are fundamental to adequate goals
HCD Review of Carlsbad's 6th Cycle Housing Element
February 22, 2021
and actions. Examples include community opposition to affordable housing, land use
and zoning laws, lack of regional cooperation, location and type or lack of affordable
housing and lack of public or private investment in areas of opportunity or affordable
housing choices. HCD will send additional examples under separate cover.
Based on the outcome of a complete analysis, the element should include actions to
enhance housing mobility strategies and encourage development of new affordable
housing in areas of opportunity, as well as place-based strategies to encourage
community revitalization, including preservation of existing affordable housing, and
protect existing residents from displacement. The element includes many meaningful
actions such as expanding housing choices in high opportunity areas through the
City's inclusionary requirement and promoting access to o'pportunity such as safe
routes to school in the Village and Barrio Master Plan areas, However, the element
should include additional actions to enhance housing mobility, encourage place-
based strategies to revitalize communities and protect existing residents from
displacement. Several programs could be enhanced to assist in meeting these
requirements, including : Programs 2. 7 (Section 8 Housing Choice Vouchers and
Similar Housing Cost Offsets), 2.8 (Assistance for Homebuyer Down Payment and
Closing Cost), 3.1 (Pursue State and Federal Funding), 3.3 (Mobilehome Park
Preservation), 3.4 (Acquisition/Rehabilitation/Retention of Rental Housing), 3.5
(Rehabilitation of Owner-Occupied Housing) and 4.1 (Fair Housing Services). Also,
the element should include specific action to protect existing residents from
displacement in the Village and Barrio areas. HCD welcomes the opportunity to
discuss additional actions with the City.
C. Quantified Objectives
A statement of the community's goals, quantified objectives, and policies relative to the
maintenance, preservation, improvement, and development of housing. It is recognized
that the total housing needs identified pursuant to subdivision (a) may exceed available
resources and the community's ability to satisfy this need within the content of the
general plan requirements outlined in Article 5 (commencing with Section 65300). Under
these circumstances, the quantified objectives need not be identical to the total housing
needs. The quantified objectives shall establish the maximum number of housing units
by income category, including extremely /ow-income, that can be constructed,
rehabilitated, and conserved over a five-year time period. (Gov. Code, § 65583, subd.
(b).)
While the element includes quantified objectives for new construction (Table 4-1), it
must include additional quantified objectives for rehabilitation and conservation and
preservation by income group, including extremely low-income households.
HCD Review of Carlsbad's 5t11 Cycle Housing Element
February 22, 2021