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Home My WebLink About2021-03-25; Housing Element Update Status Report (District - All); Barberio, GaryTo the members of the: CITY COUNCIL Dat:t;;>.,.~ !:it CA ✓ CC L CM ACM ✓ DCM (3) L Council Memorandum March 25, 2021 To: Honorable Mayor Hall and Members of the City Council From: Gary Barberio, Deputy City Manager, Community Services Branch Jeff Murphy, Community Development Dire tor Via: Geoff Patnoe, Assistant City Manager Re: Housing Element Update Status Report {city of Carlsbad Memo ID #2021067 This memorandum provides a status on the Housing Element Update (HEU) effort as well as a link to the latest draft document that will be presented to the City Council on April 6, 2021. Background Staff continues to make progress on the draft HEU as last reported in the City Council Memorandum dated Feb. 25, 2021 (Attachment A). Following that Memorandum, staff incorporated the latest changes requested by the California Department of Housing & Community Development (HCD) into the city's draft HEU. The city's draft HEU and supporting documents were presented before the Planning Commission and Housing Commission at Public Hearings on March 3 and March 4, 2021, respectively. Both commissions unanimously recommended approval of the city' draft HEU. Discussion Staff is in the process of finalizing the April 6, 2021, City Council Staff Report and continue to have conversations with HCD to ensure that all edits necessary for a certified HEU are included in the draft document. In advance of the Public Hearing, and to give the City Council and the community additional time to review the policy document before the meeting, the most recent draft of the HEU is available via the link below. Staff is available to print a hard copy of the HEU upon request of a City Council Member. https://www.carlsbadca.gov/services/depts/planning/housing/default.asp Next Steps The following are upcoming key milestones: Date Milestone April 6 City Council Public Hearing; public testimony and decision April 15 Housing Element Update submitted to HCD for final approval April 15 Staff will reinitiate outreach on mapping efforts to bring update on the rezonings to City Council by end of the year Community Services Branch Community Development Department 1635 Faraday Avenue I Carlsbad, CA 92008 I 760-602-4600 t Council Memo -Housing Element Update Status Report (Districts -All) March 25, 2021 Page 2 Attachment: A. City Council Memo, dated Feb. 25, 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 Ron Kemp, Assistant City Attorney Don Neu, City Planner Eric Lardy, Principal Planner Scott Donnell, Senior Planner To the members of the: COUNCIL Date CA ✓ CC ✓ CM_ ACM ~ DCM (3) L_ . Council Memorandum .Feb.25,2021 To: From: Honorable Mayor Hall and Members of the City Council Jeff Murphy, Community Development Director Attachment A {cityof 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 prelirnina~y review and comment. The intent of this early review is for HCD to identify any plan deficiencies 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 immediat ely. 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 ! I 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 ·. Pl'anning Commission hearing; public testimony and ~~conirnendatlon -·- March 4 Housing Commission hearing; public testimony and recommendation April 6 City Council hearing; p4l;>Jic _testimony and de~ision ,. ... _- ,-·, April 15 Housing Element submitted to HCD for final approval Aprill5 Staff will reinitiate mapping efforts to bring the re;_zoniilgs to City Gouhdl 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 · I Tom Frank, Transportation Director Vicki Quiram, Utilities Director .. . - - -· Council Memo -Housing Element Update Status Report (Districts -All) Feb.25,2021 Page 3 Ron l<emp, Assistant City Attorney Don Neu, City Planner Eric Lardy, Principal Planner Scott Donnell, Senior Planner To the members of the: CITY COUNCIL Date 1-a--21cA~CC ~/ CM v ACM ✓ocM (3) .L.. -- 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 e Housing Element Update -Status Report ATTACHMENT A {cityof ··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 760-573-3927t 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 th~ 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 13). Discussion A. Housing Element Update On Sept. 10, 2019, tlie 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.Id 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 comi;nents/amendments to the draft Housing Elemen~, endorsed the document and directed staff to submit the draft Ho1.1sing 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 I 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 Y-0uTube videos, the inability to talk to people and physically show maps impacted public participation. Also, COVID-19 related city priorities and needs have pulled staff away from this effort ove~ 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 consideri;ltion by April 2021. The city, in collaboration with other jurisdictions in similar situations, 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. Unfortun.ately, 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. r . I I Council Memo -Housing Element Update -Status Report Jan. 8, 2021 Page4 Next Steps The following are upcoming key milestones: 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 Cl erk): http://edocs.carlsbadcagov/HPRMW ebDrawer/Record.HTML/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, California has required that all cities and counties adequately plan for their share of the state's growing housing needs. While cities do not build housing -that is the function of private developers -they do adopt plans, regulations and programs that provide opportunities for how and where housing development occurs. One of the most important housing policy documents used by jurisdictions is the General Plan; more specifically, the Housing Element of the General Pian. 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 jurisdict\on's General Plan is known as "Housing Element Law:' This information bulletin outlines how the state determines housi1'1g requirements for jurisdictions, the process localities must follow to secure a certified Housing Element, and the implications for failing to meet required state housing goals. I. THE REGIONAL HOUSING NEEDS ASSESSMENT The California Department of Housing & Community Development is responsible for developing state housing production goals. These goals represent the total number of housing units to be built within an eight year housing cycle for varying income groups. This process is referred to as the Regional Housing Needs Assessment. Once the RHNA is determined, HCD assigns the RHNA figures to the 21 different council of governments located throughout the state, who in turn assign the housing goals to their respective member cities and counties. Carlsbad's COG is the San Diego Association of Governments, who represents 18 cities and the County of San Diego. The RHNA is developed by HCD and distributed to the individual cities and counties by the COGs in accordance with four state directed RHNA objectives: Plan for housing at all income levels/ail 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 CATEGOR!ES 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. llie~2~fs~JTil'.~~~rn1ir rn1tJlt~?f~r · , .. i Very Low <50% f--~---·····----·······---·•-·-----l 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 fails under the AMI for San Diego County, which is currently $86,300 peryearfor 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: ~H~~JE?f~g~_~:itWiilf 1m~~~~:irnm:~Ul.~if ':~~'q1~:i ! Very Low ___ -'-______ <_5_0°_¼_: _ $53,500, 1 Low 51 to 80% . $85,600 I ;-----·······-···········•--··"····-·· L Mode_ra_te _________ 81_t_o 1_2._0°_1/o__,_ ____ $1_0_3,_55.-..;0 ! !,Above_Moderate ...... --·-·· ........ ·---·· ?.'.!2~9n :. ·-·--····>$103,550_.: OUR HOME OUR FUT URE 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. :)jj~~iW}li Very Low $53,500 30 du/ac Low $85,600 30 du/~c 1----···-·-····-•··•··-••·····-•···•l---------+-------l Moderate $103,550 15 du/ac Above Moderate >$103,550 <15 du/ac ~------~-------'----··-·····-·---··-···----- 1 du/a,; Dwelling unit per1 acre ofland 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 th_e 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 ju risdic:tion 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 Ill), 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 RHNA 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 l www.carlsbadca.gov. Page 2 of 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. PENALT IES FOR NONCOMPLIANCIE & LIMITATIONS Failing to meet th:= 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 housf ng 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 330.introduces 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 city paying significant financial penalties and/or substantive attorney fees. Community Development Department I 1635 Faraday Ave, I Carlsbad, CA 92008 I www.carlsbadca.gov Page3 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 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 AD Us to address housing production. Refer to the city informational bulletin on _AD Us. vm. 2021-2029 HOUSING CYCLIE 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 RHNA 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 ln accordance with SB 375 (See Section IX for more on this process). RHN/.\ 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 SANDAG RHNA Subcommittee meetjngs. 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 SAN DAG 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 wide·nings 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 J 1635 Faraday Ave. J Carlsbad, CA 92008 J www.carlsbadca.gov Page4of 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.gov 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 lowe_r-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 'Or need additional technical assistance, please contact Schab Mehmood, of our staff, at Sohab. Mehmood@hcd.ca.gov. Sincerely, ·~~·· .. , .·c;J:-·. ---;:, .. • ✓ . . • . . ~-.-. . 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. h cd . ca.gov /community-development/ho using-element/ho us irig-element- me mos. s html. 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, inciuding 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: c 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 aflowable 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. o 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. I I ., r 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.qov 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 par~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 frorri 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. o 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 b~ suspended. Processing and Permit Procedures: The element indicates a Site Development Plan (SDP} 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 I !CD r evkiw of Ca l'lsbacl's 6th Cycle t lousing Element Februar1 2:2 , 202··1 . 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. B. 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 wilf 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 shalf 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/dentified in the . inventory completed pursuant to paragraph (3) of subdivision (a) withoutrezoning, 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 Carl~➔!).;d's U11 Cyci "' Housin g Eletnent F 0brn,:;1 (\f 2?, .20:2 -1 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 Rev ievv of C.-:1 rl sbad ' -·th Cycle Housing E.len r:=;nt Fc-➔bi-1121 ry .'.22; 20;2·1 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 opportunity 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 (Acquisi,ion/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 r{sview Jf ..:arlsbacl 's 6th Cycle Housing Element Feb1·ucny 22, 2021