The URL can be used to link to this page

Home My WebLink About2023-01-12; Housing Crisis Act (SB 330) Overview and Preliminary Applications (Districts - All); Barberio, GaryTo th e members of the: CllY COUN CIL Date 1 / I 2:fZ.'!> CA V CC ✓ CM _\.L ACM ~DCM (3) L January 12, 2023 Council Memorandum To: From: Honorable Mayor Blackburn and Members of the City Council Gary Barberio, Deputy City Manager, Community Services Branch Jeff Murphy, Community Development p u:~ctor Via: Geoff Patnoe, Assistant City Manager ~ {city of Carlsbad Memo ID# 2023003 Re: Housing Crisis Act {SB 330} Overview and Preliminary Applications {Districts -All) A handful of important state housing laws have been passed by the California legislature in recent years, including Senate Bill (SB) 330, commonly referred to as the Housing Crisis Act (HCA) of 2019. This memorandum provides information about the HCA and a general overview of prospective housing development projects that are utilizing the allowances offered under this law. Ba ckground The California legislature first enacted the Housing Accountability Act (HAA) in 1982 to help streamline permit approval processes and promote housing development throughout the state. Over the years, the state legislature passed various revisions and amendments to the HAA, but probably the most significant amendment occurred in 2019 with the passage of the HCA. The HCA is based on the idea that needed housing has largely already been planned for (zoned) by local jurisdictions. However, the housing is not getting built and the development community attributes the lack of housing production to growing regulatory requirements, permit processing delays, and excessive impact and service fees that get imposed on new development. In response, the HCA created several new procedures, mandatory processing timelines, and legislative limitations on municipalities with the goal of streamlining the entitlement process by slashing the time and cost it takes to secure permits for housing that meets the local government's existing rules. Essentially, the HCA mandates specific processing timelines and significantly limits the ability of a local government to deny a housing project that is consistent with local planning and zoning requirements. SB 330 also prohibits the city from enforcing housing caps as reflected in the city's Growth Management Plan (GMP) or imposing moratoriums or limitations on housing development for exceedances of the GM P's established performance standards. For additional information on Community Services Branch Community Development Department 1635 Faraday Ave I Carlsbad, CA 92008 I 442-339-2600 t Council Memo -Housing Crisis Act (SB 330) Overview and Preliminary Applications January 12, 2023 Page 2 SB 330, an Informational Bulletin has been developed that provides an overview of how the law affects the city's review and approval process of eligible housing developments 1. Discussion In addition to the above summarized legislative limitations imposed on local cities, the HCA provides eligible housing development projects seeking discretionary approval enhanced streamlining and vesting protections2. As of this writing, the city has received four preliminary applications that are processing under the HCA allowances. •4K APARTMENTS, Encinas Creek Apartments LLC., District 2 (SDP 2021-0021/HDP 2021-0004/HMP 2021-0007) The project involves a 153-unit multiple-family residential apartment project, at 20.2 dwelling units per acre on a 7.54-acre parcel. The project is requesting a 35% state density bonus and is proposing that 20% of the units {23 units) will be made affordable to lower income families. The project site is located approximately 1,200 lineal feet south-east of the corner of Cannon Road and College Boulevard. The application was originally submitted in April 2021 and went through three comment reviews. The last comment letter was issued in early summer last year. Because the applicant failed to timely resubmit their application within the state established deadline, the vesting protections under the HCA have expired. However, all other permit streamlining provisions and protections provided under the HAA still apply. •PONTO BEACHFRONT, Planning Systems, District 4 (CT 2021-0004/PUD 2021-0009/SDP 2021-0022/CDP 2021-0055/HMP 2021-0008) The development application involves development of a mixed-use project on a 11.04- acre (gross) site generally located near the northeast corner of Avenida Encinas and Carlsbad Boulevard with Ponto Drive traversing the property. Residential development of 136 multifamily condominium units, at 21.6 dwelling units per acre on 6.28 acres (net), is proposed on the east side of Ponto Drive; and commercial (retail and restaurant) and open space (habitat restoration and preserve) development is proposed on 3.03 acres (net) on the west side of Ponto Drive. The project is proposing that 20% of the residential units (28 units) be made affordable onsite to low-income households. The application was originally submitted in April 2021, but never resubmitted following the city's comment letter issued a month later. Like the 4K Apartments, because the applicant failed to timely resubmit, the vesting protections under the HCA have expired. However, all other HAA provisions and protections still apply. 1 IB-132: SB 330 Housing Crisis Act (https://www.carlsbadca.gov/home/showpublisheddocument/8166/637725763890630000) 2 Vesting rights limit the city to only applying those ordinances, policies, regulations, fees, and development standards that are in place at the time the preliminary application was filed. This applies to the entirety of the entitlement process. Council Memo -Housing Crisis Act (SB 330) Overview and Preliminary Applications January 12, 2023 Page 3 • FPC RESIDENTIAL, H.G. Fenton, District 4 (SDP 2022-0003/CDP2022-0023) The proposal involves a residential project on 4.64 acres, located at 7200, 7290 and 7294 Ponto Drive. The proposed residential project consists of 86 multifamily residential apartment units in a mix of two-and three-story town home style buildings, at a density of 18.5 dwelling units per acre. The two-story units are 30 feet in height. The three-story units are 35 feet in height with some buildings extending up to 45 feet at stair tower locations. The proposed project includes a 27.5 percent density bonus request with a requirement to provide 13 units affordable to low-income households. The application was received in March 2022 and is currently on schedule to be considered by the Planning Commission in Spring 2023. • SMART AND FINAL SITE, Tooley Interests LLC, District 1 (PRE 2022-0059) The preliminary application involves the redevelopment of the Smart & Final Shopping Center located at the southwest corner of Carlsbad Village Drive and lnterstate-5. The proposal includes a mixed-use development on a 4.12-acre (net) site consisting of 219 multi-family residential apartment units at 53.1 dwelling units per acre. The preliminary application shows a residential development supported by a large parking garage adjacent to the lnterstate-5 Freeway and 13,800 square feet of commercial space. The project is proposing a 50 percent density bonus component, which is proposing to provide 27 units affordable at the very low-income level, which is consistent with State law to provide 15 percent of the base density units at that income level and compliance with the city's inclusionary housing requirements. The preliminary application was submitted in November of 2022 and the response letter was issued on Dec. 27, 2022. Under the HCA, the applicant has 90-days following the response on the preliminary application (March 2023) to formally submit a development application and retain its vesting protections. Next Steps Staff will continue to process the above referenced development projects consistent with state and local laws and policies. cc: Scott Chadwick, City Manager Cindie McMahon, City Attorney Ron Kemp, Senior Assistant City Attorney Mike Strong, Assistant Director of Community Development Eric Lardy, City Planner Cliff Jones, Principal Planner