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HomeMy WebLinkAbout2022-11-03; Housing Element Implementation Status Update (Districts - All); Barberio, GaryT'.> ihe members of the: CITY COUNCIL D:1t c-~ CA _)i_ CC ~ / CM ._..VACM ~OCM (3) _u November 3, 2022 Council Memorandum To: Honorable Mayor Hall and Members of the City Council From: Gary Barberio, Deputy City Manager, Community Services Jeff Murphy, Community Developmenti · ctor Via: Geoff Patnoe, Assistant City Manager · Re: Housing Element Implementation Stat Update (Districts -All) {city of Carlsbad Memo ID# 2022116 This memorandum provides a status on the implementation of the 2021-2029 Housing Element and is an update to the Council Memorandum provided on September 1, 2022 (Attachment A). Background The City Council approved the 2021-2029 Housing Element on April 6, 2021. The Housing Element contains many programs that must be implemented, many of which by the end of 2024. Program 1.1 of the Housing Element requires the city to rezone properties as necessary to accommodate the city's Regional Housing Needs Assessment (RHNA), or the number of homes needed to accommodate forecasted growth through 2029. On February 15, 2022, the City Council directed the study of two alternatives of potential housing sites that, if rezoned or developed as estimated, would fulfill program requirements. While completion of Program 1.1 must occur by April 2024 per state law, staff's intent has been to present the rezoning to the City Council by Spring 2023. While Program 1.1 is considered the most visible and most controversial of the housing programs, there are several other required programs within the city's Housing Element that staff is currently working on or will be initiating within the next 12 to 18 months. Discussion Preparation of a Supplemental Environmental Impact Report (SEIR) is underway to implement Program 1.1. On September 14, 2022, a Notice of Preparation of the SEIR was published. Notification of this was sent to over 5,000 property owners and tenants within 600-feet of the 18 potential housing sites. Additionally, the notice was sent via email, posted on the city's website, and promoted through social media. Two scoping meetings were originally scheduled and were held on September 26 (in person) and September 28 (virtually). Due to a large public interest, a third scoping meeting was held on October 17 and the public comment period was extended to end on October 26. Release of a _graft of the SEIR for public review is planned in 2023. Community Services Branch Community Development Department 1635 Faraday Avenue I Carlsbad, CA 92008 I 442-339-5088 t Council Memo -Housing Element Implementation Status Update (Districts -All) November 3, 2022 Page 2 Several sections of the SEIR, including air quality, greenhouse gas emissions, noise, and transportation are dependent on travel demand modeling that estimates vehicle miles traveled (VMT). It is standard that these estimates use a regional travel demand model, and the most common practice is to contract with San Diego Association of Governments (SAN DAG) to complete the modeling and provide the appropriate data. The data will also be incorporated into the Climate Action Plan (CAP) Update, a separate but concurrent effort. The model SANDAG would use is known as the Activity Based Model (ABM2+), which supported SANDAG's 2021 Transportation Regional Plan and is planned to be used by other local jurisdictions for similar projects. However, as was anticipated as a potential risk in the September 1, 2022, Council Memorandum, SAN DAG released a general memo on September 30, 2022 (Attachment B), to all jurisdictions and private entities that have pending modeling projects indicating that there is at least a six-to- seven month delay. SAN DAG attributes the delays to the SAN DAG Board of Directors direction to remove the road usage charge from the 2021 Regional Plan. SAN DAG indicated that a custom memo to each jurisdiction explaining the delay would be released by October 12, 2022, but to date no such memo has been sent. Additionally, SAN DAG did not respond to the city's letter regarding the need for timely modeling of our housing sites, which was included as an attachment to the September 1, 2022, Council Memorandum. While it is typical for jurisdictions to use SAN DAG, in recent years the regional transportation model has been made available publicly for consultants to use. Implementation of Program 1.1 has a deadline and must be completed by April 2024. Upon conversations with the city's transportation sub-consultant, costs for the transportation sub-consultant to complete the work would total $68,500, which is an additional $22,410 above the funding that was previously authorized to be paid to SAN DAG for this work. Therefore, to ensure that the state's deadline of April 2024 is met, staff is proposing to utilize contingency funds within the current contract in the amount of $22,410 and updating the contract documents to proceed with having the transportation sub-consultant complete the necessary travel demand modeling work. After this update, the remaining contingency for this project will be $13,832, therefore if other costs arise additional funding may need to be requested. Delaying the Housing Element rezone work until SAN DAG has capacity to perform the required modeling is not a feasible option as the delay will likely cause the city to miss the state mandated April 2024 deadline ---a deadline that would result in serious negative implications if missed. Recent news articles are reporting that more and more developers are using the authority under the state Housing Accountability Act to develop by-right high-density housing in local cities who lack a state certified Housing Element. This state authority, often referred to as the Builder's Remedy, is a housing development streamlining tool that provides developers the option to file an application for a housing development project that is not in conformance with a jurisdiction's zoning or General Plan. In other words, in exchange for providing some affordable units, a developer can ministerially (by-right) build a housing project at any density in any location in the city, irrespective of public input or local laws. While stories involving housing development under the Housing Accountability Act have largely been focused on cities in northern California, it was Council Memo -Housing Element Implementation Status Update (Districts -All) November 3, 2022 Page 3 recently reported that the City of Del Mar is now subject to processing its' first local Builders Remedy project1. While Carlsbad is one of eight jurisdictions in the county that has a state certified Housing Element,2 the California Department of Housing & Community Development (HCD) is closely monitoring certified cities to make sure they are timely completing those programs and tasks required in their respective Housing Elements. HCD has made it clear that failure to meet specified program deadlines jeopardizes state certification of a jurisdiction's Housing Element. This not only applies to Program 1.1 (rezoning), but the roughly 35 ongoing housing programs and 15 new housing programs that are listed in the city's certified Housing Element. As of the date of this memorandum, the city remains on track to complete the assigned programs and tasks required in the city's Housing Element. In fact, several significant housing deliverables will be presented throughout calendar year 2023 for City Council decision, including Program 1.1. Once those deliverables are completed, staff will shift their focus on developing required programs and initiatives that address Affirmatively Furthering Fair Housing,3 a significant local undertaking that has special interest with HCD. Staff brings this to your attention as the work program for the Community Development Department (more specifically, the Advanced Planning Division) for the next two to three years will be predominately made up of housing related initiatives, as well as those projects included in the recently adopted City Council Strategic Plan. Any new initiatives added to the work program may jeopardize the ability to timely complete committed housing programs and strategic planning related projects. Next Steps Release of the draft SEIR was anticipated for early 2023 followed by public hearings to consider approval of site rezonings in spring 2023. It is now reasonable to expect these timeframes will be pushed back from Spring 2023 to Late Summer/Early Fall 2023. Staff will provide an additional update to the City Council when more timeframe certainty is available. Conducting public hearings in 2023 keeps the city on track to complete all actions ahead of the April 2024 state deadline to complete the rezonings. Attachment: A. September 1, 2022: Council Memo -Housing Element Implementation Status B. Letter from SAN DAG on modeling delay 1 Molnar, Philip. "Proposed Del Mar development would bring 259 new apartments to ocean bluff." Union Tribune. October 18, 2022. 2 Other cities with a certified housing element include the city of Encinitas, Imperial Beach, National City, San Diego, San Marcos, Vista, and the County of San Diego) 3 Affirmatively Furthering Fair Housing (AB 686) is a group of programs and actions that remedy fair housing issues such as racially segregated neighborhoods, housing discrimination, the lack of housing choice, and unequal access to housing-related opportunities. Council Memo -Housing Element Implementation Status Update (Districts -All) November 3, 2022 Page 4 cc: Scott Chadwick, City Manager Cindie McMahon, City Attorney Paz Gomez, Deputy City Manager, Public Works Ron Kemp, Assistant City Attorney Jamie Wood, Environmental Sustainability Director Tom Frank, Transportation Director Sarah Lemons, Senior Program Manager Nathan Schmidt, Transportation Planning and Mobility Manager Katie Hentrich, Climate Action Plan Administrator Jason Geldert, Engineering Manager Eric Lardy, City Planner Scott Donnell, Senior Planner To the members of the: CITY COUNCIL Date '1/1/��CA \/CC✓ CM \/ACM✓ DCM (3).:!,_ Council Memorandum September 1, 2022 To: From: Via: Re: Honorable Mayor Hall and Members of the City Council Gary Barberio, Deputy City Manager, Community Services Jeff Murphy, Community Developmen�ctor Geoff Patnoe, Assistant City Manager Housing Element Implementation Status (Districts - All) {city ofCarlsbad Memo ID #2022095 This memorandum provides a status on the implementation of the 2021-2029 Housing Element, particularly about the environmental review and schedule for rezoning of new housing sites to accommodate the city's Regional Housing Needs Assessment (RHNA). Background The City Council approved the 2021-2029 Housing Element on April 6, 2021. The Housing Element contains many programs that must be implemented throughout the housing cycle, most of which by the end of 2024. Program 1.1 requires the city to rezone properties as necessary to accommodate the city's RHNA, or the number of homes needed to accommodate state forecasted growth through 2029. On February 15, 2022, the City Council directed the study of two alternative maps of potential housing sites that if rezoned or developed as estimated, would fulfill program requirements. While completion of Program 1.1 must occur by April 2024 per state law, staff's intent has been to present the rezoning to the City Council by mid-2023. Discussion A necessary and important part of the process to rezone sites is environmental review. To study potential impacts associated with this effort, preparation of a supplemental environmental impact report (SEIR) to the 2015 General Plan Update EIR is currently underway. This report is required under the California Environmental Quality Act (CEQA), and release of a draft of the report for public review is planned in 2023. Several sections of the SEIR, including air quality, greenhouse gas emissions, noise, and transportation are dependent on travel demand modeling that estimates vehicle miles traveled (VMT). It is standard that these estimates use a regional travel demand model, and the most common practice is to contract with SAN DAG to complete the modeling and provide the appropriate data. The data will also be incorporated into the Climate Action Plan (CAP) Update, a separate but concurrent effort. The model SAN DAG will use is known as the Activity Based Model (ABM2+), which supported SANDAG's 2021 Transportation Regional Plan and is planned to be used by other local jurisdictions for similar projects. Community Services Branch Community Development Department 1635 Faraday Avenue I Carlsbad, CA 92008 I 442-339-5088 t Attachment A Council Memo - Housing Element Implementation Status (Districts -All) September 1, 2022 Page 2 Due to the land use assumptions SAN DAG used in the Regional Transportation Plan1, ABM2+ must be tailored to individual jurisdictions. Originally, SAN DAG estimated the customizable version would be available in late June. Based on this schedule, SAN DAG indicated it could "run" a Carlsbad-specific model by late July or August, factoring in model run times and similar requests from other jurisdictions. However, SAN DAG did not release the model until July 15 and now estimates a model run specifically for Carlsbad will not occur until this fall. This could be further delayed if SAN DAG proceeds with updating the 2021 Regional Transportation Plan to remove the "Road User Charge" that was included in the projections. The revised timeline from SAN DAG delays by at least a month project processing and release of the city's draft SEIR. Additionally, staff is concerned about the vagueness of the "fall" timeframe and the possibility that more delay that would impact not only the rezoning process, but the CAP update. A delay could also result, for example, if the SAND AG Board directed changes to the 2021 Regional Plan that could be prioritized above agency requests. Next Steps Staff will continue to monitor SANDAG's progress and may consider what, if any, options are available to acquire the necessary modeling data. For example, now that a customizable version of ABM2+ is available, hiring a consultant to run a Carlsbad-specific model instead of SAN DAG is possible. While this may provide more certainty in project scheduling, the feasibility, timing, and expense of this option is not known. Carlsbad could also develop its own travel demand model instead of utilizing SANDAG's; however, the time it would take to do so renders it an unlikely alternative. Additionally, staff recently sent a letter to SAN DAG, provided as Attachment A, outlining Carlsbad's concerns with SANDAG's timing and reiterating the importance of the customization required. The city and its consultant continue work on SEIR content not dependent on the modeling results. Technical studies (e.g., biology) are already underway. Planning for public scoping meetings is occurring as well. The meetings, one virtual and one in-person, which will enable community input on potential environmental impacts, are a necessary step in the preparation of an Environmental Impact Report. Staff is now planning the scoping meetings taking place in September, after Labor Day, in recognition of the delay in project processing. Meetings will be noticed to owners and occupants surrounding all potential housing sites along with notice to the city's Housing Element email list, and staff will prepare a City Council Memorandum to inform of the outreach and meeting dates. Release of the draft SEIR was anticipated for early 2023 followed by public hearings to consider approval of site rezonings in spring 2023. It is now reasonable to expect these timeframes may be pushed at least a month. Staff will provide an additional update to the City Council when 1 The city sent SAN DAG two comment letters on the 2021 Regional Transportation Plan, including remarks on land use. The letters are part of an October 21, 2021, Council Memorandum available at: https://records.carlsbadca.gov/Weblink/DocView.aspx?id=5493674&dbid=0&repo=CityofCarlsbad&searchid=de2d7383-2f4b- 49fc-bdbb-3f5c39a02256. Council Memo -Housing Element Implementation Status (Districts -All) September 1, 2022 Page 3 more timeframe certainty is available. The anticipated summer 2023 approval hearings are still ahead of the April 2024 state deadline to complete the rezonings. Attachment: A. August 29, 2022, Letter to SAN DAG cc: Scott Chadwick, City Manager Cindie McMahon, City Attorney Ron Kemp, Assistant City Attorney Jamie Wood, Environmental Sustainability Director Tom Frank, Transportation Director Sarah Lemons, Senior Program Manager Nathan Schmidt, Transportation Planning & Mobility Manager Katie Hentrich, Climate Action Plan Administrator Jason Geldert, Engineering Manager Jennifer Horodyski, Associate Engineer Eric Lardy, City Planner Scott Donnell, Senior Planner Aug. 29,2022 San Diego Association of Governments Attn.: Ms. Coleen Clementson 401 B Street, Suite 800 San Diego CA, 92101 Via: SDForward@sandag.org Attachment A ( City of Carlsbad RE: CITY OF CARLSBAD HOUSING ELEMENT IMPLEMENTATION AND REGIONAL MODELING REQUESTS Dear Ms. Clementson: The City of Carlsbad appreciates the opportunity to work with the San Diego Association of Governments (SAN DAG) as a member agency and prides itself in being only one of the seven member agencies with a Certified 2021-2029 Housing Element. As part of that housing element, there is commitment to rezone various properties located throughout the city to accommodate our Regional Housing Needs Assessment by 2023. To maintain our schedule, on Feb. 15, 2022, our City Council . directed the study of two maps reflecting potential housing sites that if rezoned, would fulfill our housing element program requirements. A necessary and important part of the process to rezone sites is environmental review and the preparation of a supplemental environmental impact report (SEIR) is currently underway with a scheduled public review period taking place in earlier 2023. Several sections of the SEIR, including air quality, greenhouse gas emissions, noise, and transportation are dependent on travel demand modeling that estimates vehicle miles traveled (VMT). It is standard practice that these estimates use a regional travel demand model, and the most common practice is to contract with SAN DAG to complete the modeling and provide the appropriate data. The data will also be incorporated into the Climate Action Plan (CAP) Update, which the city is also currently updating. City staff and our transportation consultant have had conversations with SAN DAG since December 2021 regarding the availability of the model and was advised that the model would be ready in Summer 2022. Recently, SAN DAG staff have advised us that we are behind multiple other jurisdictions and the earliest we could expect the model is in the Fall of 2022. Carlsbad respectfully requests that SAN DAG support the city's service bureau requests as efficiently as possible. Further delays in completion of the regional travel demand model could adversely impact our rezone schedule and jeopardize our ability to timely meet our Housing Element program requirements, thereby potentially placing our HCD housing element certification at risk. Additionally,· the city requests that future decisions to update the 2021 Regional Transportation Plan respect the fact that Carlsbad and other local jurisdictions have been waiting on the availability of the regional model for local projects for some time and that further delays could result in additional liability, time, and costs for member · agencies. Community Development Department 1635 Faraday Avenue I Carlsbad, CA 92008-7314 I 442-339-5088 t Ms. Clementson Aug.29,2022 Page 2 If you have any questions or need additional information, please contact Eric Lardy, City Planner, at eric.lardy@carlsbadca.gov. JM:EL:mh cc: Gary Barberio, Deputy City Manager, Community Services Tom Frank, Transportation Director Jamie Wood, Environmental Sustainability Director Ron Kemp, Assistant City Attorney Eric Lardy, City Planner Scott Donnell, Senior Planner Jason Geldert, Engineering Manager Nathan Schmidt, Transportation Planning and Mobility Manager Attachment B Date: September 30, 2022 Memo to: Service Bureau Clients and Member Agency Staffs From: Dr. Cindy Burke, Senior Director Data Science Subject: Delays in Service Bureau Projects that Require Transportation Modeling On Friday, September 23, 2022, the SAN DAG Board of Directors directed SAN DAG to prepare a focused amendment to the 2021 Regional Plan with a supplemental CEQA analysis that would remove the road usage charge (RUC) from the 2021 Regional Plan. The amendment is a 12-month process and will occur at the same time staff is preparing for the 2025 Regional Plan. Preparing an amendment to the 2021 Regional Plan while staying on schedule to complete a 2025 Regional Plan by the December 2025 deadline will require multiple planning and modeling projects to be put on hold. This includes modeling work that SANDAG conducts for local jurisdictions and external agencies via Service Bureau, which will be delayed approximately six to seven months. Please know that all entities currently in our Service Bureau queue will be contacted individually in the next ten business days to discuss the delay and decide potential alternatives to complete requests. We recognize that many firms have been patiently waiting for SANDAG modeling services to complete important jurisdictional work and we sincerely regret this delay. 401 B Street, Suite 800 San Diego, CA 92101-4231 (619) 699-1900 j SANDAG.org