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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