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HomeMy WebLinkAbout2019-09-19; Department of Housing and Community Development HCD Correspondence; |Fountain, Debbie| Barberio, Gary|To the members of the: CITY COUNCIL D.ite9 I I q I 1q CA L CC :L_ CM _JL_ COO _L DCM {3) L Sept. 19, 2019 Council Memorandum To: Honorable Mayor Hall and Members of the City Council From: Debbie Fountain, Community & Economic Development Director Via: Elaine Lu key, Chief Operations Officer {city of Carlsbad Memo ID# 2019105 Gary Barberio, Deputy City Manager Cote.mnit Services . Re: Department of Housing & Community D elopment (HCD) Correspondence This memorandum provides a copy of and summary information on correspondence received on Sept. 18, 2019, from the State Department of Housing & Community Development (HCD) regarding the Romeria Pointe Project. Background The Romeria Pointe project proposed 23 units of housing, including three units designated as very-low income with a 35% density bonus. The State Department of HCD has reviewed City of . Carlsbad actions related to the Romeria Pointe Project, which was remanded back to the Planning Commission with a requirement to complete a focused EIR to consider geotechnical and traffic impacts of the project. Discussion The Department of HCD has reviewed city documentation and provided feedback on the actions of the City of Carlsbad related to the Romeria Pointe Project. See attached letter dated Sept. 18, 2019, from Deputy Director, Zachary Olmstead, Department of HCD. Next Steps Staff will review and evaluate the correspondence. Attachment: Correspondence from the State Department of HCD, dated Sept. 18, 2019,. regarding the Romeria Pointe Project cc: Scott Chadwick, City Manager Celia Brewer, City Attorney Ron Kemp, Assistant City Attorney Don Neu, City Planner Community Services Branch Community & Economic Development Department 1635 Faraday Avenue I Carlsbad, CA 92008 I 760-602-2710 t 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.gov September 18, 2019 Scott Chadwick, City Manager 1200 Carlsbad Village Drive Carlsbad, CA 92008 RE: City of Carlsbad, Romeria Pointe Project Dear Scott Chadwick: The purpose of this letter is to assist the city in complying with the Housing Accountability Act (Gov. Code Sec. 65589.5). The Department of Housing and Community Development (HCD) recognizes the challenge of interpreting ever-changing housing and land-use laws, and appreciates the city's efforts to maintain compliance with all applicable laws. In enacting the Housing Accountability Act, the Legislature declared, "California has a housing supply and affordability crisis of historic proportions" (Gov. Code Sec 65589.5(a)(2)(A)). This housing crisis, the Legislature found, has adverse impacts on Californi9ns and California, impacting citizens' health, safety, economic standing and the state's environment and competitiveness (Gov. Code Sec. 65589.5(a)(2)). Through the Housing Accountability Act, the Legislature intended "to significantly increase the · approval and construction of new housing for all economic segments of California's communities by meaningfully ~nd effectively curbing the capability of local governments to deny, reduce the density for, or render infeasible housing developments" (Gov. Code Sec. 65589.5(a)(2)(K)). Furthermore, the Legislature declared, "It is the policy of the state that this section should be interpreted and implemented in a manner to afford the fullest possible weight to the interest of, and the approval and provision of, housing" (Gov. Code Sec. 65589.5(a)(2)(L)). Through communications with the developer and Carlsbad city staff, we have been made aware of delays with the Romeria Pointe project (Project No. SOP 2018-0004 (DEV2017-0151)). The Romeria Pointe project consists of 23 units of housing, including 3 units designated as very-low income. By virtue of its very low-income units, the project was granted a 35% density bonus as well as height and unit concessions provided by State Density Bonus Law (Gov. Code Sec. 65915) and applicable Carlsbad Municipal Code (CMC Section 21.86.050). The project is proposed for two lots (APNs: 2163001200, 2163001300) designated in the Housing Element for moderate-income units (City of Carlsbad, 2013-2021 Housing Element, pg. B-2). According to the Planning Department staff report provided in advance of the project consideration by the Planning Commission and City Council, the Romeria Pointe application was deemed Scott Chadwick, City Manager Page 2 complete on October 12, 2018, compliant with all applicable zoning laws, and exempt from providing environmental documents pursuant to the California Environmental Quality Act (CEQA) because it was an in-fill development project (City Council Agenda Packet, Item #12, Exhibit 4, "Planning Commission Staff Report"). The project was approved by a unanimous vote of the Planning Commission on March 20, 2019. The approval was appealed, and, on June 11, 2019, the City Council considered the appeal in an open session . The debate at City Council was extensive, but the outcome unclear. From HCD's examination of the meeting record, it appears that the Council neither accepted nor denied the appeal. Instead, the Council chose to remand the project to the Planning Commission for a "focused EIR" that would consider both geotechnical and traffic impacts of the project. No written findings were made by the Council. By virtue of this decision, the city risks violating the Housing Accountability Act. The Housing Accountability Act creates substantive preconditions for the delay and disapproval of housing. If a housing project "complies with applicable, objective general plan, zoning, and subdivision standards and criteria, including design review standards, in effect at the time that the housing development project's application is determined to be complete," the Housing Accountability Act requires jurisdictions to make specific findings when "the local agency proposes to disapprove the project or to impose a condition that the project be developed at _a lower density" (Gov. Code Sec. 65589.5U)(1)). In particular, the local agency must determine, in writing, that "[t]he housing development project would have a specific, adverse impact upon the public health or safety" (Gov. Code Sec. 65589.5U)(1 )(A)) and "[t]here is no feasible method to satisfactorily mitigate or avoid the adverse impact" (Gov. Code Sec. 65589.5U)(1 )(B)). These written findings must be "supported by a preponderance of the evidence on the record" (Gov. Code Sec. 65589.5U)(1 )). Moreover, the Legislature has declared its intent "that the conditions that would have a specific adverse impact upon the public health and safety ... arise infrequently" (Gov. Code Sec. 65889(a)(3)). "Specific adverse impact" is narrowly defined as "a significant, quantifiable, direct, and unavoidable impact, based on objective, identified written public health or safety standards, policies, or conditions as they existed on the date the application was deemed complete" (Gov. Code Sec. 65589.50)(1 )(A)). Finally, the Legislature has declared that "the receipt of a density bonus ... shall not constitute a valid basis on which to find a proposed housing development project is inconsistent, not in compliance, or not in conformity, with an applicable plan, program, policy, ordinance, standard, requirement, or other similar provision" (Gov. Code Sec. 65589U)(3)). Under Government Code Section 65589.5(h)(5)(B), disapproval means failure "to comply with the time periods" established by Gov. Code Section 65950. The Legislature has determined that "A public agency that is the lead agency for a development project shall approve or disapprove the project within ... [s]ixty days from the determination by Scott Chadwick, City Manager Page 3 the lead agency that the project is exempt from the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code), if the project is exempt from that act." (Gov. Code Sec. 65950(a)(5)). The city has, thus far, made no findings that negate the Planning Department's determination that the project is exempt. The Housing Accountability Act does not free the city from complying with CEQA (Gov. Code Sec. 65589.S(e)). But, by extending the development process substantially for this project, the City of Carlsbad risks violating the Housing Accountability Act. Please contact Cynthia Marsh (916-263-7421), of our staff, if we can be of any support. Sincerely, r~ Zachary Olmstead Deputy Director cc: Matt Hall, Mayor City of Carlsbad / Celia A. Brewer, City Attorney City of Carlsbad I Don Neu, City Planner City of Carlsbad