HomeMy WebLinkAbout2021-07-15; State Finding of Substantial Compliance for City's Housing Element (Districts - All); Barberio, GaryTo the members of the:
CITY COUNCIL
Date 1 /1 sjz1 CA £ cc 'I-
CM ~ACM Y-, DCM (3)~
July 15, 2021
Council Memorandum
To:
From:
Via:
Honorable ~ayor Hall and Members of the City Council
Gary Barberio, Deputy City Manager, Community Services
Jeff Murphy, Community' Developmen~ector
{city of
Carlsbad
Memo ID #2021140
Re:
Geoff Patnoe, Assistant City Manage~
State Finding of Substantial Compliance for City's Housing Element (Districts -All)
This memorandum provides an update on the state's review of the city's recently adopted
Housing Element as well as the next steps in the implementation process.
Background
The Housing Element is an eight-year plan that all jurisdictions must prepare that details how
they intend to accommodate housing needs for varying income groups. On April 6, 2021, the City
Council timely adopted a comprehensive update to its Housing Element, which covers the 6th
state housing cycle from 2021 to 2029. Following City Council approval staff submitted the
adopted Housing Element to the California Department of Housing and Community Development
(HCD) for a determination of compliance with California Housing Laws. The HCD received the
Housing Element for review on April 15, 2021, and under statute, the HCD had 90-days to certify
(approve), conditionally certify (approve with conditions) or reject the city's Housing Element.
Discussion
On July 14, 2021, the HCD notified the city in a letter (Attachment A) certifying the city's Housing
Element, finding that the document addresses all statutory requirements and substantially
complies with State Housing Element Law. Some important takeaways from this news.
• The state did not remove or modify any of the city's proposed housing sites;
• The city is back on an eight-year housing cycle (Carlsbad was subject to updates every
four-years when it missed a deadline on a prior housing update);
• The city is eligible for state-funding programs designed to reward local governments for
compliance with State Housing Element Law (refer to the link at bottom of page three of
the HCD letter for more information); and,
• Carlsbad is one of a few cities in the region to have a state-compliant Housing Element for
the 2021-2029 period.
Next Steps
Community Services Branch
Community Development Department
165 Faraday Avenue I Carlsbad, CA 92008 I 760-602-4600 t
Council Memo -State Finding of Substantial Compliance for City's Housing Element
July 15, 2021
Page 2
As discussed in a July 1, 2021, Council Memorandum (Attachment B), staff will return to the City
Council in August 2021 and present two mapping options for accommodating the required units.
The City Council will be requested to review these options, the public outreach plan, and provide
any additional direction prior to the public outreach that will be conducted in the subsequent
two months.
It is anticipated that these two options will not include either the Ponto site or the Site 13
properties, and that staff will request City Council direction on either reducing the available
buffer or adding a few alternate sites. Following the public outreach, staff will return to the City
Council by early 2022 to share their findings and request an endorsement of draft mapping
scenarios which will be analyzed as part of environmental review.
Workplans will also be developed to ensure that the other programs and tasks listed in the
Housing Element are timely developed, as specified in the HCD certification letter.
Attachments: A. July 13, 2021, compliance letter from the California Department of Housing and
Community Development
B. July 1, 2021, Council Memorandum
cc: Scott Chadwick, City Manager
Celia Brewer, City Attorney
Don Neu, City Planner
Eric Lardy, Principal Planner
Scott Donnell, Senior Planner
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
July 13, 2021
Scott Chadwick, City Manager
City of Carlsbad
1200 Carlsbad Village Drive
Carlsbad, CA 92008
Dear Scott Chadwick:
RE: Review of Carlsbad's 6th Cycle (2021-2029) Adopted Housing Element
Attachment A
Thank you for submitting the City of Carlsbad's (City) housing element adopted on April
6, 2021 and received for review on April 15, 2021. Pursuant to Government Code
section 65585, subdivision (h), the California Department of Housing and Community
Development (HCD) is reporting the results of its review. HCD considered comments
from the People for Ponto and the San Diego Housing Federation pursuant to
Government Code section 65585, subdivision (c).
HCD is pleased to find the adopted housing element in substantial compliance with
State Housing Element Law (Article 10.6 of the Gov. Code). The adopted element
addresses the statutory requirements described in HCD's February 22, 2021 review.
HCD's finding was based on, among other reasons, several programs that remove
constraints on housing and effectuate affirmatively further fair housing (AFFH) policies
and practices. Additionally, the City must continue timely and effective implementation
of programs such as Program 1.3 (Alternative Housing), Program 1.6 (Development
Streamlining), Program 2.7 (Section 8 Housing Choice Vouchers and Similar Housing
Cost Offsets) and Program 4.3 (Anti-Segregation in Housing Implementation). The City
must monitor the effectiveness of these, and other programs, and make adjustments, as
appropriate, as part of its Annual Progress Report to HCD. Specifically, HCD notes the
following:
• Group Homes for Seven or More: The element notes that group homes for
seven or more persons (also referred to as large residential care facilities) are
permitted differently than groups homes for six or fewer persons and are
conditionally permitted in only a few zones (pg. 167). Additionally, the element
notes that residential care facilities must provide one parking space for every
three beds. HCD finds the permitting and parking requirements to be
constraints for developing and providing access to housing for persons with
disabilities. As such, the City must implement Program 1.3 (Alternative
Scott Chadwick, City Manager
Page 2
Housing), objective g: to review and amend the Carlsbad zoning ordinance or
allow group homes of seven or more in the same manner as group homes of
six or fewer; allow group homes in all residential zones; and remove
constraints, including parking constraints, to housing for persons with
disabilities by April 2023
• Site Development Plan Process: The element notes that through the site
development plan process, Planning Commission or City Council may impose
special conditions or requirements that are more restrictive than the current
development standards related to density, parking standards, setbacks,
heights, etc., (pg. 194). HCD finds this to be a constraint to development as
stricter requirements can add to costs, timing, and create uncertainty to the
approval of a project. As a result, the City m.ust implement Program 1.6
(Development Streamlining), objective g: to review and remove any special
conditions from the site development planning process that will impact the
density, cost, timing, or certainty of a projects approval by April 2022.
• AFFH -Mobility Enhancement: As part of addressing Assembly Bill (AB) 686
(Chapter 958, Statues of 2018) AFFH requirements, jurisdictions must include
goals, policies, and a schedule of actions that will have a beneficial impact
during the planning period. Specifically, the element identified Program 2.7
(Section 8 Housing Choice Vouchers and Similar Housing Cost Offsets),
· objective d, and Program 4.3 (Anti-Segregation in Housing Implementation),
objective f, as mobility strategies. Implementing these programs is essential to
removing barriers to housing in areas of opportunity and strategically enhancing
access.
• Rezoning: The element includes the rezone program needed to identify
adequate sites to accommodate the City's regional housing need allocation ·
(RHNA) for lower-income households. Program 1.1 (Provide Adequate Sites to
Accommodate the RHNA) commits to rezone at least 108 acres with a
minimum density of 30 units per acre by April 2024 to accommodate a shortfall
capacity of 1,397 units to meet the lower-income RHNA. The program also
commits to rezone sufficient capacity to accommodate 327 units for moderate
income RHNA.
Encinas Creek Apartments: The housing element relies on the pending development of
the Encinas Creek Apartments (which is now referenced as 4k Apartments in the
applicant's SB 330 submittal), to accommodate 63 units of the City's RHNA for lower-
income households and 64 units of the City's RHNA for above-moderate households
(pg. B-15). Sites and projects that are being counted towards RHNA must have existing
or planned access to infrastructure to ensure development during the planning period.
Timely implementation of access to infrastructure, including roads, is critical to ensure
the project can be developed within the planning period.
Scott Chadwick, City Manager
Page 3
. The City must report on progress toward implementing all of the programs identified in
the housing element pursuant to Government Code section 65400. Failure to act
consistently with the programs noted above, may trigger a review by HCD pursuant to
Government Code Section 65585, subdivision (i) and may impact the City's housing
element compliance status.
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 has adopted its housing element before the due date of
April 15, 2021, and as such has met the second four-year update requirement. The City
is no longer subject to the four-year revision requirements and may resume an eight-
year update schedule.
Public participation in the development, adoption and implementation of the housing
element is essential to effective housing planning. Throughout the housing element
process, including as part of the implementation of programs described above, the City
must continue to engage the community. Public participation should include a wide
range of approaches and participants, including organizations that represent lower-
income and special-needs households. The process should make information regularly
available while considering and addressing comments where appropriate.
For your information, some other elements of the general plan must be updated on or
before the next adoption of the housing element. The safety and conservation elements of
the general plan must include analysis and policies regarding fire and flood hazard
management (Gov. Code, § 65302, subd. (g).). Also, the land-use element must address
disadvantaged communities HCD urges the City to consider these timing provisions and
welcomes the opportunity to provide assistance. For information, please see the Technical
Advisories issued by the Governor's Office of Planning and Research at:
http://opr.ca.gov/docs/SB244 Technical Advisory.pdf and
http://opr.ca.gov/docs/Final 6.26.15.pdf.
Please note the City now meets specific requirements for state-funding programs
designed to reward local governments for compliance with State Housing Element Law.
For example, HCD's Affordable Housing and Sustainable Communities program and
CalTrans' SB1 grant program consider housing element compliance in their review
process. The CalTrans' SB 1 grant program also considers. annual progress report
submissions. Please see HCD's website for specific information about funding programs
at http://www.hcd.ca .gov/grants-fundinq/active-funding/index.shtml and Caltrans'
website at http://www;dot.ca.gov/hq/tpp/grants.html.
Scott Chadwick, City Manager
Page 4
HCD appreciates the hard work, cooperation, and diligence the Carlsbad housing
element team, including Don Neu, Jeff Murphy, Scott Donnell, Brenna Weatherby; Eric
Lardy, and Rick Rust provided. HCD is committed to assisting the City in addressing all
statutory requirements of State Housing Element Law. If you have any questions or
need additional technical assistance, please contact Sohab Mehmood, of our staff, at
Sohab.Mehmood@hcd.ca.gov.
Sincerely,
·e::'°'~·-.··· :' CJJ:.· .. -~-. '.. . ... -_ .. .. . . . . -..
-~' .
Shannan West
Land Use & Planning Unit Chief
To the m~mbers of the:
CITY COUNCIL
Date -,/,/-;LI CA .x._ CCL
CM _If.. ACM _L DCM {3) _L
July 1, 2021
Council Memorandum
To: Honorable Mayor Hall and bers ofthe City Council
From: Gary Barberio, Deputy City a ager, Community Services
Jeff Murphy, Community De ent Director
Don Neu, City Planner
Via: Geoff Patnoe, Assistant City a r
Attachment B
{cityof
Carlsbad
Memo ID #2021130
Re: Housing Element and Program 1.1 Update: Provide Adequate Sites to Accommodate the
RHNA (Districts -All)
This memorandum provides an update to the Housing Element and Program 1.1: Provide
Adequate Sites to Accommodate the Regional Housing Needs Allocation (RHNA), as well as the
return to City Council with options to implement the program.
Background
On April 6, 2021, the City Council adopted amendments to the Housing Element to cover the
period between 2021 and 2029. The city was assigned an overall RHNA of 3,873 dwelling units.
Through approved projects, existing vacant sites, and assumptions for Accessory Dwelling Units,
the city can accommodate all but 1,724 units (1,397 lower-income and 327 moderate-income). A
program within the Housing Element, Program 1.1, requires that the city rezone enough property
to accommodate the shortfall of units at densities for lower income, at least 26.5 units per acre,
and moderate income, at least 11.5 units per acre, within three years (by April 2024).
Program 1.1 was included in the adopted amendments to the Housing Element, submitted to the
California Department of Housing and Community Development (Department), who is currently
reviewing the Housing Element for compliance with California Housing Laws. The Housing
Element was submitted on April 14, 2020, and the Department has 90 days (by July 13, 2021) to
review and respond to the city. Additionally, since other provisions in California Law require that
the entire number of units be maintained until 2029, the Department recommends an additional
15% to 30% of the tota! RHNA units be provided as a buffer.
Discussion
At the April 7, 2021, City Council Public Hearing, the City Council took two actions that impact
implementation of Program 1.1. First, the City Council directed one moderate-income property
(Ponto property) that accommodated 120 units be removed from the inventory. Second, the City
Council directed that the six Site 13 properties listed as potential residential (a combination of
295 lower-income and 32 moderate-income units) be designated as a low priority site and for
staff to look for a suitable alternative site within the same quadrant, if needed.
Community Services Branch
Community Development Department
1635 Faraday Avenue I Carlsbad, CA 92008 I 760-602-4600 t
Council Memo -Housing Element and Program 1.1 Update (Districts -All)
July 1, 2021
Page 2
Next Steps
To implement City Council's direction, and prior to obtaining additional public outreach on
Program 1.1, staff will return to the City Council in August 2021 and present two mapping
options showing ways how to accommodate the required units. The City Council will be
requested to review these options, the public outreach plan, and provide any additional direction
prior to the public outreach that will be conducted in the subsequent two months. It is
anticipated that these two options will not include either the Ponto properties or Site 13. Staff
anticipates providing additional options for City Council's consideration, including to either
reduce the available buffer or add a few alternate sites.
Following the public outreach, staff will return to the City Council in Winter 2021/2022
requesting the City Council to endorse options prior to the preparation of a draft Environmental
Impact Report and further processing of any rezone program.
Staff will also report on any findings from the Department and if any changes from that response
impact the ability to implement this or any other program. The adopted Housing Element and
any project updates will continue to be posted on the city website at:
https:ljwww.carlsbadca.gov/departments/community-development/planning/housing-plan-
update
cc: Scott Chadwick, City Manager
Celia Brewer, City Attorney
Ron Kemp, Assistant City Attorney
Eric Lardy, Principal Planner
Scott Donnell, Senior Planner