HomeMy WebLinkAbout2024-09-12; State Housing Regulations and Coastal Act Compliance (Districts - All); Barberio, GaryCouncil Memo -State Housing Regulations and Coastal Act Compliance (Districts -All)
September 12, 2024
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approved by the Coastal Commission in 1980, and several subsequent amendments to the LCP
have regularly occurred since then.
In response to the high cost of housing development in California, the state legislature has
increasingly flexed its authority and adopted ---and continues to adopt ---legislation that
increases development opportunities thereby making it easier and quicker for homes to be
built. However, to date, state housing laws have generally continued to require projects to
comply with the Coastal Act. As such, for many of these housing laws to be implemented in the
coastal zone, cities must amend their respective LCPs to address these new housing laws.
Over the past 18 months, city staff has noticed that recent LCP amendments, most of which
include state mandated housing code changes, are not being timely processed or are being
significantly altered by Coastal Commission staff.
Discussion
The City of Carlsbad has been aggressively updating local codes and policies to comply with new
state housing laws. This is completed through implementation of General Plan Housing Element
programs and updates to Title 21 (Zoning Ordinance) of the Carlsbad Municipal Code (CMC),
informational bulletins, and other planning related documents.
Over the past few years, staff has processed, and the City Council has adopted several required
housing codes changes. Refer to Attachment A for a listing of the various state law changes
that have been incorporated in the city's land use regulations. However, many of these code
changes are still pending Coastal Commission's approval of the associated LCP amendments
and therefore are not yet effective in the coastal zone. Refer to Attachment B for the status of
these projects.
What staff is noticing is that updates to the city's LCP, including the Zoning Ordinance and
Village and Barrio Master Plan, have been consistently delayed until the last statutory month
that Coastal Commission staff is allowed by law to review applications. This gives city staff very
little time to review and negotiate through our differences and disagreements in proposed
code language changes. In fact, there have been recent situations where Coastal Commission
staff proposed modifications to the city's pending code changes and city staff questions
whether Coastal Commission's proposed changes would comply with state housing law.
In two recent cases, Coastal Commission staff have encouraged the city to withdraw its
applications and resubmit due to state statutory deadlines. This is a common strategy used by
Coastal Commission staff when they are unable to complete their review of an application by
state mandated hearing deadlines ---withdrawing the application and resubmitting restarts
their processing timeline. If the application is not withdrawn, the Coastal Commission staff will
be required to schedule the application before the Coastal Commission with a recommendation
of denial or significant modifications proposed without opportunity for city staff review and
discussion.
This is what happened to the comprehensive LCP amendment that was approved by City
Council on October 12, 2021 (Attachment C). At the request of Coastal Commission staff, the
Council Memo -State Housing Regulations and Coastal Act Compliance (Districts -All)
September 12, 2024
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city withdrew its LCP amendment application under the promise that Coastal Commission staff
would provide the city with its final comments the following month. Once received, the
application could be resubmitted to the Coastal Commission, and its review would be
expedited. However, it took Coastal Commission staff roughly 10 months to return with their
final comments, which city staff is currently discussing with Coastal Commission staff.
Additional information on that LCP amendment will be provided under a separate Council
Memorandum.
There are several concerns and issues these code modifications and growing delays in LCP
amendment processing cause the city and its citizens:
• These delays create confusion for applicants required to comply with state regulations
and city staff for enforcing these regulations. This is particularly frustrating when one
set of rules outside the coastal zone are different from rules inside the coastal zone.
• State housing laws have specified effective dates, most of which have since passed.
Delays in LCP amendment review only increases the city's risk of noncompliance with
the California Department of Housing and Community Development (HCD).
• Based upon past actions, city staff lacks confidence that Coastal Commission staff will
expedite city LCP amendments following withdrawal of the application. Additionally, city
staff is concerned about how HCD would perceive the city's proactive withdrawal of a
housing related LCP amendment.
Staff has discussed this issue with other coastal cities within the San Diego region including the
cities of San Diego, Del Mar, Encinitas and Oceanside, and found that these cities have been
experiencing similar challenges. Statewide, other jurisdictions across the coast have
experienced delays with LCP amendments.
Next Steps
The city will continue to monitor state housing regulations to ensure that the housing
regulations and processes that are entirely under city control are up-to-date and in compliance.
The city will also continue to work closely with the Coastal Commission on projects currently
under its review to help reduce/prevent further delays and ensure progress is being made on
these reviews.
However, city staff does not intend to withdraw any housing related LCP amendments because
of Coastal Commission staff's failure to timely process the city's application. Rather, should the
Coastal Commission deny an LCP amendment application, staff will advise City Council of the
decision and then inform HCD of the Coastal Commission's failure to timely adopt state
mandated housing law changes. As with past LCP amendments, any modifications made by the
Coastal Commission will be brought back to the City Council for consideration and action before
those changes can become effective in the city.
Council Memo -State Housing Regulations and Coastal Act Compliance (Districts -All)
September 12, 2024
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Attachments: A. List of state housing code changes
B. City housing projects status update tables
C. Council Memorandum dated June 15, 2023, on file with City Clerk's Office
(https://records.carlsbadca.gov/Weblink/DocView.aspx?id=6433230&dbi
d=0&repo=CityofCarlsbad)
cc: Scott Chadwick, City Manager
Cindie McMahon, City Attorney
Allegra Frost, Senior Assistant City Attorney
Jason Haber, Intergovernmental Affairs Director
Mike Strong, Assistant Director
Eric Lardy, City Planner
Robert Efird, Principal Planner
Scott Donnell, Senior Planner
Shelley Glennon, Associate Planner
Attachment A
Provided below is a list of the recent housing laws passed by the state and what the city is
doing to ensure its regulations and processes comply with these state regulations as well
as the California Coastal Act. The list is primarily grouped by state law categories and
organized in ascending order of the city's review and approval. Note that some categories
have several actions which are addressed at different times. As listed, many projects are
still pending Coastal Commission's certification and therefore are not yet effective in the
Coastal Zone.
1. Housing Element Programs (AB 2011 , SB 6)
Pursuant to Senate Bill (SB) 6 and Assemble Bill (AB) 2011 , the state requires
jurisdictions to allow residential uses in commercial/office zones and to allow density
bonuses and streamlined review for affordable units. These laws apply within the
Coastal Zone. The city currently allows density bonuses pursuant to CMC Chapter
21 .86 "Density Bonus" which requires compliance with state regulations. In April 2021,
the city adopted an update to the city's General Plan Housing Element which included
programs to implement new state housing regulations.
On April 19, 2022, the City Council approved amendments to the zoning ordinance to
implement Housing Element Programs 1.6 and 1.8 to allow mixed-use development
(residential and commercial uses) in all commercial zones and to streamline housing
production (Exhibit A). On January 30, 2024 the city implemented Housing Program 1.1
to re zone sites to accommodate the city's Residential Housing Needs Assessment
(RHNA) dwelling units (Exhibit B). No other changes are proposed or necessary to
implement AB 2011 and SB 6. The Housing Element Programs project is effective in the
Coastal Zone however the Housing Element Rezoning Program is pending Coastal
Commission approval.
2. Temporary and Alternative Housi ng Uses (AB 101, AB 2339)
The state requires cities to implement programs through the Housing Element that
allow for temporary and alternative housing uses in residential areas. Temporary
housing includes emergency shelters and low barrier navigation centers. Alternative
housing includes group homes, residential care facilities and employee housing. These
laws apply within the Coastal Zone. The city approved two amendments to the zoning
ordinance to implement Housing Element Program 1.3 by addressing temporary and
alternative housing. The first amendment was through the 2022 Zoning Ordinance
Cleanup Project approved by City Council on April 19, 2022 (Exhibit C). It amended the
zoning ordinance to address employee housing and residential care facility parking. On
May 23, 2023 a second amendment was approved by City Council to define and allow
temporary and alternative housing types such as family daycares, employee housing,
group homes, residential care facilities, emergency shelters and low barrier navigation
centers (Exhibit D). No other changes are proposed or necessary to implement AB 101
and ABB 2339. The 2022 Zoning Ordinance Cleanup project is effective in the Coastal
Zone. The Temporary and Alternative Housing Project has a Coastal Commission
Attachment A
hearing date set for Sept. 12, 2024 with no proposed suggested modifications and
therefore consistent with the city's project submittal.
3. Encouraging Accessory Dwelling Unit (ADU) Development (AB 976, AB 2221 , AB
1223, SB 897)
State regulations passed through AB 2221 and SB 897 were intended to encourage and
expedite ADU and Junior ADU production. All state ADU laws apply within the Coastal
Zone. AB 2221/SB 897 were addressed through the city's 2023 Accessory Dwelling Unit
Amendments project. The most notable changes included increasing detached ADU
height limitations, allowing front yard prot rusions for by-right ADUs and streamlining
the permitting review process. City Council approved this amendment on May 23, 2023
(Exhibit E).
AB 1223 requires cities to provide Permit-Ready ADU plans and to update these plans,
as needed, to be consistent with state building standards. The city launched its Permit-
Ready ADU program in May 2023 and it is consistent with the 2022 California Building
Standards Code. The plans did not require approval by City Council; it did however
require a professional service agreement with a consultant to prepare the plans which
City Council approved on October 19, 2021 (Exhibit F).
AB 976 prohibits jurisdictions from enforcing ADU owner-occupancy requirements. The
city is currently processing the 2024 Zone Cleanup project that removes ADU owner-
occupancy requirements from the zoning ordinance. On July 30, 2024 City Council
made a motion to approve the 2024 Zone Cleanup project with modifications (Exhibit
G). It is anticipated that the city will process another comprehensive ADU ordinance
update to address new state regulation changes, including SB 477 (effective March
2024) to reference the new ADU government code section (Title 7 Chapter 13
"Accessory Dwelling Units"}, as well as SB 1077 (pending state approval), which is
intended to change ADU permitting requirements in the Coastal Zone . The next
comprehensive ADU Ordinance update is anticipated in 2025. Both the 2023 ADU
Amendments project and 2024 Zone Cleanup project is still pending Coastal
Commission approval (2024 Zone Code Cleanup is also pending City Council's final
approval).
4. Streamlined Housing Development & Increased Density Allowance (SB 9, SB 35, SB
330)
SB 9 allows lots zoned for single-family residential (R-1) to be split into two lots or
allows two residential units to be built on one lot, thereby allowing an increase in
density for traditionally single-family residential zones. Coastal Commission's
guidance on SB 9 outlines that projects in the Coastal Zone are still required to comply
with the Local Coastal Program and process Coastal Development Permits. SB 35
allows certain residential development projects to be approved ministerially and SB
330 also allows residential and mixed-use development applications to be
streamlined . The city has created informational bulletins for SB 9, SB 35 and SB 330 to
Attachment A
ensure the public is informed of the requirements necessary to process projects under
these new state regulations. There is no requirement to change any regulation to allow
projects to be processed under SB 9. More information is provided in the SB 9, SB 35
and SB 330 Information Bulletins found on the city website.
5. Objective Design Standards (SB 35, SB 330, SB 423)
All projects eligible for streamlined review pursuant to SB 9, SB 35 or SB 330 must be
approved or denied pursuant to adopted objective design and development standards
{ODS). The city was awarded two State Department of Housing and Community
Development {HCD) grants in 2019 and 2021 to complete objective design standards
for eligible multifamily housing development projects pursuant to SB 35 and SB 330. On
August 29, 2023, City Council approved objective design standards for multifamily
housing projects in the Village and Barrio Master Plan {"Master Plan") area and for all
areas outside of the Master Plan area {citywide), pursuant to Housing Element Program
1.11 {Exhibits H & I).
When City Council approved the ODS projects in August 2023, projects eligible for a
streamlined ministerial permit review process pursuant to SB 35 excluded projects
located in the Coastal Zone. However, after city staff submitted the ODS Local Coastal
Program Amendment {LCPA) applications to Coastal Commission for review, Coastal
Commission staff notified the city on June 14, 2024 that the city is required to modify
the ODS LCPA applications to incorporate objective LCP standards pursuant to new
state legislation {SB 423) passed in October 2023. SB 423 extends SB 35's eligibility
criteria to projects located in the Coastal Zone effective Jan . 1, 2025. Therefore,
Coastal Commission staff will not process the ODS LCPA applications as submitted
even though SB 423 is not yet in effect. This additional review to incorporate objective
standards pursuant to SB 423 will cause a delay as staff must do additional analysis
and wait to receive official guidance from both the Coastal Commission and HCD as to
how to implement the new SB 423 guidelines. Both Coastal Commission and HCD staff
indicated that statewide guidance will be provided before the end of the year. City staff
will continue to work closely with Coastal Commission staff to process the ODS LCPA
applications currently pending Coastal Commission's approval.
6. Parking Exemptions Near Transit Stations (AB 2097)
AB 2097 requires jurisdictions to exempt commercial and residential projects from
minimum parking requirements if located within½ mile from a major public transit
station. The city has two qualifying transit stations: the Poinsettia Coaster Station and
the Carlsbad Village Coaster Station. City staff has created an AB2097 Informational
Bulletin which includes information on whether an applicant can apply AB 2097 parking
exemptions based on the project location and proposal. Additionally, Coastal
Commission recently provided guidance for projects exempt from minimum parking
requirements pursuant to AB 2097 which states that projects and LCPs must be
consistent with the public access and recreation policies of the Coastal Act. Therefore,
the city can impose mitigation measures for projects that would have an adverse
Attachment A
impact to beach access. It is anticipated that the city will process another Village and
Barrio Master Plan amendment to address AB 2097 in 2025. More information is provided
in the AB 2097 information bulletin found on the city website.
Exhibits:
A. City Council staff report dated April 19, 2022, on file with City Clerk’s Office
(https://cityrecords.city.carlsbadca.gov/WebLink/DocView.aspx?id=6265368&dbid=0&rep
o=CityOfCarlsbad&searchid=c80abb9f-8112-4207-9bad-6d06a9221474)
B City Council staff report (Housing Element Rezoning Program) dated January 30, 2024, on
file with City Clerk’s Office
(https://cityrecords.city.carlsbadca.gov/WebLink/DocView.aspx?id=7237799&dbid=0&rep
o=CityOfCarlsbad&searchid=873bba4f-e3a3-4ced-bc83-2cb963fa66e9)
C. City Council staff report (2022 Zone Cleanup) dated Sept. 13, 2022, on file with City Clerk’s
Office
(https://cityrecords.city.carlsbadca.gov/WebLink/DocView.aspx?id=6322753&dbid=0&rep
o=CityOfCarlsbad&searchid=5382b7b6-814a-48ed-9df0-73b177f69e02)
D. City Council staff report (Alt & Temporary Housing) dated May 23, 2023, on file with City
Clerk’s Office
(https://cityrecords.city.carlsbadca.gov/WebLink/DocView.aspx?id=6419848&dbid=0&rep
o=CityOfCarlsbad&searchid=67708f84-ad25-40e5-b8c6-59e88b31e533
E. City Council staff report (2023 ADU Amendment) dated May 23, 2022, on file with City
Clerk’s Office
(https://cityrecords.city.carlsbadca.gov/WebLink/DocView.aspx?id=6419853&dbid=0&rep
o=CityOfCarlsbad&searchid=67708f84-ad25-40e5-b8c6-59e88b31e533)
F. City Council staff report (PSA, Permit-Ready ADU) dated October 19, 2021 (on file with City
Clerk’s Office
(https://cityrecords.city.carlsbadca.gov/WebLink/DocView.aspx?id=5493688&dbid=0&rep
o=CityOfCarlsbad&searchid=8ae42e7b-f7c3-4611-a466-dab205af8637)
G. City Council staff report (2024 Zone Clean Up) dated July 30, 2024, on file with the City
Clerk’s Office
https://records.carlsbadca.gov/WebLink/DocView.aspx?id=9942879&dbid=0&repo=Cityof
Carlsbad&searchid=25e90546-5d15-419d-9fae-a4f65fba6a7c'
H. City Council staff report (Village and Barrio Objective Design Standards) dated August 29,
2023, on file with City Clerk’s Office
(https://cityrecords.city.carlsbadca.gov/WebLink/DocView.aspx?id=6475132&dbid=0&rep
o=CityOfCarlsbad&searchid=8e41752f-a665-4d82-9489-e5eb052cd244)
I. City Council staff report (Citywide Objective Design Standards) dated August 29, 2023, on
file with City Clerk’s Office
(https://cityrecords.city.carlsbadca.gov/WebLink/DocView.aspx?id=6475067&dbid=0&rep
o=CityOfCarlsbad&searchid=8e41752f-a665-4d82-9489-e5eb052cd244)