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HomeMy WebLinkAbout2023-04-19; Planning Commission; ; HOUSING ELEMENT PROGRAMS (1.1.N, 1.3.C, 1.3.D, 1.3.E, 1.8.D, AND 2.13.J) Planning Commission Memorandum Item No. 2 April 19, 2023 To: Chairperson Merz and Members of the Planning Commission From: Scott Donnell, Senior Planner Via: Eric Lardy, City Planner Re: HOUSING ELEMENT PROGRAMS (1.1.N, 1.3.C, 1.3.D, 1.3.E, 1.8.D, AND 2.13.J) The purpose of this memorandum is to present an evaluation and update to the Planning Commission on General Plan Housing Element Programs 1.1 (Objective N), 1.3 (Objectives C, D and E), 1.8 (Objective D), and 2.13 (Objective J). As stated below, each of these programs are to be completed by April 2023. This memorandum and the attached information satisfy the Housing Element requirements for the referenced programs. Background and Discussion On April 6, 2021, the City Council adopted an update to the General Plan Housing Element. The update provides the city’s housing plan (strategy) for the 2021-2029 housing period. This strategy is implemented through goals, policies, and programs. Goals are articulated as “end condition statements.” They are implemented by Policies, statements on the position the city takes to implement the goal. Lastly, the Programs and Objectives outline the specific actions the city will take to ensure implementation of the Polices. There are approximately 40 Housing Element programs that are further divided into nearly 160 objectives. These program objectives identify ongoing actions the city must implement throughout the housing period and specific actions the city must accomplish by certain due dates. As shown in the table below, several program objectives require the city to evaluate and consider various additional implementation actions topics by April 2023. Exhibits 1 through 6 provide an evaluation of each objective with contextual information, analysis, and points of consideration specific to the city in support of further deliberation or recommendations by the Planning Commission to the City Council, as desired. PROGRAM DESCRIPTION EVALUATION 1.1 Provide Adequate Sites Objective N: Density Definition Evaluate and revise, as appropriate, the determination of density (density definition) for non-density bonus projects (pursuant to CMC 21.53.230) to ensure no constraints on the ability to achieve the maximum of the applicable density range. This evaluation will include a report to the Planning Commission explaining the Exhibit 1 April 19, 2023 Item #2 Page 1 of 33 {city of Carlsbad 0 potential constraint and recommending any necessary amendments. PROGRAM DESCRIPTION EVALUATION 1.3 Alternative Housing Objective C: Efficient, Flexible Living Spaces Develop, as part of a zoning ordinance update, measures that encourage affordability by design (e.g., smaller, more efficient and flexibly-design living spaces). Exhibit 2 1.3 Alternative Housing Objective D: Alternative Housing Where appropriate, utilize the city’s regulatory powers (e.g., land use and fees) to encourage development of alternative housing. Exhibit 3 1.3 Alternative Housing Objective E: Fee by Area vs. Unit Evaluate and implement, as appropriate, a development fee structure for these units based on a per square foot basis rather than per unit basis. Exhibit 4 1.8 Mixed Use Objective D: Live/Work Zoning Evaluate and consider the expansion of live/work zoning allowances citywide. Exhibit 5 2.13 Housing for Homeless Objective J: Religious Institution Emergency Shelters Evaluate the potential to allow for emergency shelter or other temporary housing on properties owned by religious institutions. Implementation would be through appropriate updates to the city Zoning Ordinance. Exhibit 6 The purpose of this memorandum is to provide the Planning Commission with the required information to evaluate and consider each of these program objectives. The concept of evaluating each measure in a public setting increases public input and facilitates additional dialogue with the community. The format of the meeting provides the Planning Commission with an opportunity to learn more about the Housing Element and program implementation, and to discuss preliminary issues and concerns. No prescribed action is required by the Planning Commission, although staff welcomes the Planning Commission’s input and can provide additional information as requested. Next Steps As stated above, no action is required following the Planning Commission’s receipt of this memorandum and attached evaluation exhibits. However, the Planning Commission could choose to send a recommendation for items to be included in the PC work program which will be reported to the City Council regarding a need for additional evaluation related to the attached information. A Planning Commission recommendation for a change could also specify that the change be incorporated into the next Zoning Ordinance cleanup; or a commission recommendation could be to pursue further discussion, evaluation, and direction on a particular subject. The biennial Zoning Ordinance cleanup is a new ongoing work program item and the next one is anticipated to begin in the summer 2023. April 19, 2023 Item #2 Page 2 of 33 Exhibits: 1. Evaluation of Housing Element Program 1.1 Objective N: Density Definition 2. Evaluation of Housing Element Program 1.3 Objective C: Efficient, Flexible Living Spaces 3. Evaluation of Housing Element Program 1.3 Objective D: Alternative Housing 4. Evaluation of Housing Element Program 1.3 Objective E: Fee by Area vs. Unit 5. Evaluation of Housing Element Program 1.8 Objective D: Live/Work Zoning 6. Evaluation of Housing Element Program 2.13 Objective J: Religious Institution Emergency Shelters April 19, 2023 Item #2 Page 3 of 33 Exhibit 1 HOUSING ELEMENT PROGRAM 1.1 OBJECTIVE N: Density Definition HOUSING ELEMENT PROGRAM Program 1.1: Provide adequate sites to accommodate the RHNA The City of Carlsbad has been assigned a total Regional Housing Needs Assessment (RHNA) of 3,873 dwelling units for the planning period running from April 15, 2021 through April 15, 2029. [One of the main objectives in this program is the rezone program that is due to be completed by April 2024, that project is on track and scheduled to have the draft Environmental Impact Report released summer 2023, and hearings for consideration by the end of 2023.] The total RHNA obligation is further broken down into income categories, with a required number of units provided for each income category, as follows: Objective N An additional objective in program 1.1 is Objective N, stating: Evaluate and revise, as appropriate, the determination of density (density definition) for non‐ density bonus projects (pursuant to CMC 21.53.230) to ensure no constraints on the ability to achieve the maximum of the applicable density range. This evaluation will include a report to the Planning Commission explaining the potential constraint and recommending any necessary amendments. EVALUATE AND REVISE, AS APPROPRIATE, DETERMINATION OF DENSITY Implementation of this program requires an evaluation and report to the Planning Commission on whether the city’s determination of “density” (for non-density bonus projects) results in a constraint on the ability to achieve the maximum of the applicable density range. Further, the program requires this report to identify any necessary amendments to remove constraints. April 19, 2023 Item #2 Page 4 of 33 CARLSBAD I NCO ME GROUP RHNA UNITS % Very Low (:550% AMI) 1,311 34% Low (>50-80% AMI) 784 20% Moderate (>80-120% AM I) 749 19% Above Moderate (>120% AMI} 1,029 27% TOTAL 3,873 100% Sources: SANDAG, Final Regional Housing Needs Determinat.ion, 2018 .. The program objective specifically concerns how density is applied to projects that do not receive a density bonus. This is because the city’s determination of density does not constrain implementation of state density bonus law, which allows a developer to increase density on a property above the maximum of the applicable density range and directly references the calculations and process under Government Code. How does the city determine density? Zoning Ordinance Section 21.53.230 specifies how density is determined1: 21.53.230 Residential density calculations, residential development restrictions on open space and environmentally sensitive lands. (a) For the purposes of Titles 20 and 21 of this code, residential density shall be determined based on the number of dwelling units per developable acre of property. (b) Undevelopable Land (1) The following lands undevelopable and shall be excluded from density calculation: (A) Beaches; (B) Permanent bodies of water; (C) Floodways; (D) Natural slopes with an inclination of greater than 40% except as permitted pursuant to Section 21.95.140.B of this code; (E) Significant wetlands; (F) Significant riparian or woodland habitats; (G) Land subject to major power transmission easements; (H) Railroad track beds. (2) The following lands are undevelopable but may be include in density calculation unless such lands meet any of the criteria listed in section 21.53.230 (b)(1) (A) Land upon which other significant environmental features as determined by the environmental review process for a project are located; (B) Hardlined habitat preserve areas as identified in the Carlsbad Habitat Management Plan (c) No residential development shall occur on any property listed in subsection (b). Subject to the provisions of Chapters 21.33 and 21.110, the city council may permit limited development of such property if, when considering the property as a whole, the prohibition against development would constitute an unconstitutional deprivation of property. The planning commission or city council, whichever is the 1 This section of code is in effect outside of the Coastal Zone, the amendments as approved by CS-432 are awaiting Coastal Commission review and approval. Section 21.53.230 (e) has been omitted here because it pertains to determination of dwelling unit yield and not density.) April 19, 2023 Item #2 Page 5 of 33 final decision-making body for a residential development may permit accessory facilities, including, but not limited to, recreational facilities, view areas, and vehicular parking areas, to be located in floodplains (subject to Chapter 21.110) and on land subject to major power transmission easements. (d) No more than 50% of the portion of a site containing 25% to 40% slopes may be utilized for calculating allowable residential density. Residential development on slopes with an inclination of 25% to 40%, inclusive, shall be designed to minimize the amount of grading necessary to accommodate the project. For projects within the coastal zone, the grading provisions of the Carlsbad local coastal program and Chapters 21.38 and 21.203 of the municipal code shall apply. To determine if the Zoning Ordinance density calculation method is a constraint to reaching the maximum of a density range, staff surveyed 39 approved projects throughout Carlsbad. Project approvals ranged from 1999 to 2021, and none received a density bonus. Table 1 summarizes survey results. Table 1: Project Density Survey Results General Plan land use designation General Plan Density range (du/ac)2 Projects (39 surveyed)1 # projects surveyed Lowest density (du/ac) Highest density (du/ac) Ave. density (du/ac) Ave. density/ highest density3 R-44 0-4 3 3.8 4.33 4 100%/107% R-8 4-8 5 5 6 5.5 69%/75% R-15 8-15 3 11 14.6 13.2 88%/97% R-23 15-23 7 16 22.7 19.4 84%/99% R-30 23-30 3 23 24.5 23.7 79%/82% V-B5 8-15 1 13.6 13.6 13.6 91%/91% V-B5 18-23 3 21 22.9 22.2 97%/99% V-B5 23-30 2 27.8 28.6 28.2 94%/95% V-B5 28-35 12 24.96 34.9 31 89%/99% Total 88%/94% Notes: 1. Density figures have been rounded to the nearest tenth (e.g. 24.86 is 24.9; 19.44 is 19.4). 2. “du/ac” is dwelling units per acre. 3. “Ave. density/highest density” compare average and highest project densities to the maximum density of the range. 4. One project in the R-4 designation had a density of 4.3 du/ac, exceeding the 4 du/ac maximum density of the designation. Per General Plan Policy 2-P.16, density of no more than 25% above the maximum is allowed in the R-4 designation when zoning (i.e., minimum lots size and other development standards) would allow a higher density than the maximum. 5. “V-B” references land uses and densities supported by the Village and Barrio Master Plan. 6. In 2014, the city made findings to approve “State Street Townhomes” at a density (24.9 du/ac) below the minimum (28 du/ac) of the range. Note that the General Plan residential density ranges have a “growth management control point” density (middle of the density range), which ensured compliance with the city’s previously effective housing caps. For example, the growth management control point density for the R-8 designation is six dwelling units per acre (du/ac). Prior to 2020, projects were not allowed to exceed that density without meeting certain criteria. This limitation may have prevented some projects from achieving the maximum density at that time. However, in 2020 and 2021 due to state housing laws the Carlsbad City Council April 19, 2023 Item #2 Page 6 of 33 adopted resolutions finding the housing caps are unenforceable, including the growth management control point density. Therefore, the growth management control point density no longer impacts a project’s ability to achieve the maximum density. Based on survey results as indicated in Table 1, the average density achieved across all residential designations was 88% of maximum density. Table 1 also indicates that highest project densities achieved on average 94% of the maximum of the density of the range. These two statistics indicate that the city generally provides adequate sites with appropriate zoning to support housing development within the listed density ranges. In many designations (particularly in the V-B, Village-Barrio designation), projects nearly achieved the maximum density without utilizing state density bonus provisions. For example, there were 12 projects included within the V-B, 28-35 du/ac density range. The average density of the projects reviewed yielded 31 du/ac. Of the 12 projects surveyed in the V-B designation with a 28-35 du/ac density range, four projects yielded densities above 34 du/ac. The reported information also shows a few land use designations that yielded density information that falls below the central tendency. Table 1 reveals surveyed projects in the R-8, R-23, and R-30 designations had average densities that achieved only 69%, 84% and 79% of maximum density, respectively, an average below that of the other designations. Reasons for this may include the following:  As noted earlier, former implementation of the city’s growth management control point prior to 2020 may have hindered some projects in achieving higher densities due to the requirement to meet certain criteria to exceed the control point. While the standards were not intended to add unnecessary burdens to projects, the mid-point density requirement is no longer an impediment to housing development and the constraint has been eliminated.  Developers may opt to design a project (e.g., layout and size of units) below the maximum density to meet a particular market demand or use design principles to promote compatibility between new and existing structures.  The number of projects in the R-30 designation during the reporting period is limited. The R-30 designation was created in 2015 and is applied to few properties outside the V-B area – so there hasn’t been enough time to sufficiently evaluate density and development trends within this land use density category. There is a small sample of R-30 projects available to survey (listed below), which limits the survey results: • West Oaks – a 192-unit apartment project approved in 2021 along the south side of Palomar Airport Road at Palomar Oaks Way. West Oaks has a density of 24.5 du/ac. The project included a General Plan Amendment to change the land use designation from PI (Planned Industrial) to R-30. • Pacific Wind – an 89-unit apartment development approved in 2017 at a density of 23 du/ac. Pacific Wind is in the Barrio along Harding St. and Carol Pl. and is now under construction.2 This apartment development is an affordable housing project, which pursued 2 Pacific Wind and Magnolia Townhomes are presently in the V-B designation. However, at the time of their approval, these projects were approved in the R-30 designation, prior to the 2018 passage of the Village and Barrio Master Plan. Based on the R-30 designation in effect at the time of their approval, these two projects are counted under that designation. April 19, 2023 Item #2 Page 7 of 33 physical characteristics that could accommodate a range of household sizes (i.e., number of bedrooms), rather than higher densities. The 89-unit complex will have five two- and three- story buildings with one-, two-, and three-bedroom units as well as a two-story community center. • Magnolia Townhomes – a 16-unit condominium project approved in 2015 along Magnolia Ave., also in the Barrio. The project, now built, has a density of 23.5 du/ac.2  Excluded from the Table 1 count of R-8 and R-30 projects are four projects that exceed the maximum density: Aviara Apartments, Windsor Pointe (Harding St.), Windsor Pointe (Oak Ave.), and Tavarua. These projects were excluded to not skew reported numbers as each received density increases beyond the maximum of the range in exchange for providing additional affordable housing. The increases were enabled through the city’s Inclusionary Housing Ordinance and site development plan process. Staff does not believe it is necessary to revise how density is calculated based on densities achieved in the R-8, R-23, and R-30, or any other designation for the following reasons:  Significantly, Table 1 reveals highest approved densities of surveyed projects achieved an average of 94% of the maximum density. Further, projects achieved 99% or better of the maximum density in four of the nine land use designations. This analysis reveals that the determination of density is not a barrier to development.  The growth management control point density no longer impacts the ability to achieve the maximum density. The city will continue to monitor the consumption of residential acreages to ensure that an adequate inventory is available to meet the city’s RHNA obligations.  The R-8 designation provides housing at a density suitable for above-moderate income households in either smaller lot single family home or attached home configurations. Developers have consistently met or exceeded the city’s housing need for this income category without need for any city assistance, requirement (such as the inclusionary housing ordinance), or incentive to produce units in this income category. There is no need to revise standards to encourage higher R-8 densities to meet a housing need.  Housing Element Program 1.1 requires increasing the minimum density in the R-30 designation from its current 23 du/ac to 26.5 du/ac. The program requires this change to be completed by April 2024. Increasing the R-30 minimum density will be presented to the Planning and City Council as part of an overall land use amendment package to implement Program 1.1 later this year. This higher minimum density will ensure projects achieve at least 88% of the maximum density range. Furthermore, the program also requires raising the minimum densities for R-15 from 8 to 11.5 du/ac and for R-23 from 15 to 19 du/ac. CONCLUSION The city has capacity to accommodate the RHNA allocations for all income categories without changing the definition of how density is defined or how density is calculated. Based on this analysis, no changes are recommended to the city’s method for calculating density, and the evaluation required by Housing Element Program 1.1 Objective N is complete. April 19, 2023 Item #2 Page 8 of 33 Exhibit 2 HOUSING ELEMENT PROGRAM 1.3 OBJECTIVE C: Efficient, Flexible Living Spaces HOUSING ELEMENT PROGRAM Program 1.3: Alternative Housing Under this program, the city will continue to support alternative types of housing, such as managed living units or “micro-units,” to accommodate extremely-low-income households. Objective C Develop, as part of a zoning ordinance update, measures that encourage affordability by design (e.g., smaller, more efficient and flexibly-design living spaces). ZONING MEASURES THAT ENCOURAGE AFFORDABILITY BY DESIGN California Department of Housing and Community Development issued a report1 that identifies key attributes of affordable housing, which include the following design attributes and other attributes related to financing and permitting (not discussed here). Key design attributes that encourage affordability:  Small by design. Small units, like accessory dwelling units, help reduce the entry cost to housing.  Flexibility in unit design. Flexible unit designs, such as the ability to divide rooms to yield more bedrooms and spaces that can be converted for multi-purpose uses (bedroom, study, storage, etc.). Flexible unit design helps housing units adapt to changes in market demand and client needs over time.  Green by design. Projects designed to California (CalGreen) building standards result in energy and cost savings that might allow units to retain greater affordability into the future.  Parking reduction or elimination. Low or no parking requirements for housing located near sites of employment and services are important to enable higher density, which helps lower housing costs, and to encourage and enable residents, who may not be able to afford a personal vehicle, to use alternative modes of travel. 1 California Department of Housing and Community Development, Division of Housing Policy Development, Designing Affordability Innovative Strategies for Meeting the Affordability Gap between Low Income Subsidy and the Market in High Cost Areas, December 2015. April 19, 2023 Item #2 Page 9 of 33  Density bonus, height increases, setbacks concessions. Density bonuses and regulatory concessions on building height and setback requirements help to enable construction of more homes at higher densities, which helps reduce the cost of housing. How do Carlsbad zoning measures encourage housing that is small by design? Carlsbad zoning measures allow for small homes, including managed living units, accessory dwelling units, junior accessory dwelling units, and mobile homes.  Accessory Dwelling Units and Junior Accessory Dwelling Units Accessory dwelling units are the most common type of housing in Carlsbad that is affordable by design due to the limitation on the size of the units. As stated in the city’s Accessory Dwelling Units Information Bulleting IB-111, accessory dwelling units don’t require public subsidy and cost anywhere from $10,000 for a simple bedroom conversion to $300,000 for a new higher-end unit. In all areas of the city, an accessory dwelling unit may be attached to or detached from a primary dwelling, integrated into an existing or a proposed single-family home or multi- family residences, or created by converting existing space such as a garage. The city permits accessory and junior accessory dwelling units in accordance with state law – California Government Code Section 65852.2. California Government Code Section 65852.2 defines “accessory dwelling unit” as an attached or a detached residential dwelling unit that provides complete independent living facilities for one or more persons and is located on a lot with a proposed or existing primary residence. Accessory dwelling units are limited in size – detached units are limited to 1,200 square feet and attached units are limited to 50% of the floor area of the main house or 1,200 square feet, whichever is less. A junior accessory dwelling unit is limited to 500 square feet and must be contained entirely within a single-family home.  Managed Living Units The Carlsbad Village and Barrio Master Plan defines “managed living units” as “small, individual dwelling units with limited features. They are developed in a multi-family dwelling format as part of a managed living unit project. Managed living units are rentals intended for occupancy by one or two persons only and for tenancies of one month or longer. At a minimum, individual units have partial kitchens and private toilets. Units may share common baths and showers.” Managed living units are allowed in the Village and Barrio Master Plan within the Village Center, Village General, and Pine Tyer districts, subject to the approval of a conditional use permit and special regulations provided in Village and Barrio Master Plan Section 2.6.8(E), including a floor area limitation of no more than 350 square feet. The limited size helps ensure the affordability of managed living units. April 19, 2023 Item #2 Page 10 of 33  Mobile Homes and Modular Homes Mobile homes and modular homes are typically small is size, which is a key design attribute of affordable housing. Such homes are also prefabricated, which reduces construction costs. Carlsbad Zoning Ordinance defines “mobile home” as “a structure transportable in one or more sections, designed and equipped to contain not more than one dwelling unit to be used with or without a foundation system. “Mobile home” does not include a recreational vehicle, trailer coach, commercial coach, auto trailer or factory-built housing.” Mobile and modular homes are “one-family dwellings,” which is defined by the Carlsbad Zoning Ordinance as “a detached building designed exclusively for occupancy by one family and containing one dwelling unit. Such homes would be allowed where one- family dwellings are permitted. The majority of Carlsbad’s residential development is within master plan areas or are planned subdivisions, which have design standards that preclude mobile and modular homes. Most, if not all, mobile homes in Carlsbad are found within mobile home parks, which are zoned as Residential Mobile Home Park, a zone that protects the area specifically for mobile homes. There are five mobile home parks in Carlsbad.  Higher Density Zoning Implementation Density policy is also the simplest way to create opportunities for affordability by design. The city is committed to providing adequate sites with appropriate zoning to accommodate a range of housing types, including sites zoned to permit a maximum of 30 dwelling units per acre (du/ac). This type of density accommodates potential housing growth where housing projects would consume less land and have smaller unit sizes than projects of lower land use density categories. Furthermore, there can be economies of scale in the development of larger density projects, making these projects less expensive on a per-unit basis. These cost savings can be passed on to new residents. How do Carlsbad zoning measures encourage housing that is flexible in design? As stated above, a key design attribute in affordable housing is flexible unit designs (e.g., ability to divide rooms to yield more bedrooms and spaces that can be converted for multi-purpose uses), which help housing adapt to changes in market demand and client needs over time. In general, Carlsbad zoning measures do not preclude the ability to flex the use of spaces within a residential structure, provided the use of the residence remains residential and any necessary building permits are obtained.  Accessory Dwelling Units and Junior Accessory Dwelling Units Carlsbad allows accessory and junior accessory dwelling units in all areas as an accessory use to a residence. In addition to being smaller than single-family homes, Accessory dwelling units offer flexibility to adapt to changing needs in market demand and residents’ needs, which is a key design attribute of affordable housing. They also can be dispersed in areas that only allow for single-family homes. Accessory dwelling units April 19, 2023 Item #2 Page 11 of 33 provide flexibility for changing households. Many families today are made up of single/aging parents or extended families who do not require large living spaces. Accessory dwelling units offer the flexibility to meet and adapt to the living space needs associated with a shifting family structure.  Live/Work Units Live/work units allow business owners to live on the same properties as their businesses. A live/work unit is defined by the Village and Barrio Master Plan as: “a single dwelling unit (e.g., studio, loft, or one bedroom) consisting of both a limited commercial/office component and a residential component that are occupied and utilized by a single household.” Live/work units are an allowed use in the Village and Barrio Master Plan within the Village Center, Village General, and Pine-Tyler districts subject to the approval of a conditional use permit or minor conditional use permit. Outside of the Village and Barrio, mixed-use, including live/work units, is allowed in commercial zones. As a mixed-use (live and work) space, live/work units are flexible in design and offer the opportunity to adapt to changing market demands and residents’ needs, which as stated above is a key design attribute in affordable housing. How do Carlsbad zoning measures encourage housing that is green by design? Projects designed to green building standards result in energy and cost savings that might allow units to retain greater affordability into the future. Carlsbad’s building regulations support construction of homes designed to green building standards. The city implements the CalGreen building code and implements the city’s Climate Adaptation Plan, which for residential uses includes, but is not limited to, building energy efficiency, photovoltaic requirements, and alternative hot water heating. What Measures Does Carlsbad Use to Reduce Parking for Alternative Housing? Low or no parking requirements is a key design attribute of affordable housing located near sites of employment and services. The examples below describe how the city allows parking reductions to encourage affordable housing.  Accessory Dwelling Units Carlsbad Municipal Code Section 21.10.030 implements Government Code §65852.2, which specifies that no parking is required for accessory dwelling units in various circumstances, including if it is located within one-half mile walking distance of public transit and if it is constructed as part of a proposed or existing residence. Also, if a garage is converted to an accessory dwelling unit, the garage parking spaces do not need to be replaced (except in certain Coastal Zone areas).  One-Half Mile from a Transit Stop The state legislature passed Assembly Bill 2097 (effective Jan. 1, 2023), which added Government Code §65863.2, that eliminates parking requirements in new residential April 19, 2023 Item #2 Page 12 of 33 and commercial developments when located within a half-mile of a major transit stop. In Carlsbad, the Carlsbad Village Station and Poinsettia Station are the only two areas that meet the state’s definition of transit stop. As stated in the city’s AB 2097 Parking Requirements Information Bulleting IB-131, the state’s Assembly Floor Analysis on AB 2097 found that in buildings with no on-site parking, only 38% of households owned a car, but in buildings with at least one parking space per unit, the study found that more than 81% of households owned automobiles. As such, by eliminating parking in new development, the state determined that fewer households would rely on the automobile for transportation. One of the goals of this new law is to help drive down construction costs – designing a project with no parking will support construction of housing, and potentially, more affordable housing.  Development Incentives and Concessions Through the city’s Inclusionary Housing Ordinance and Density Bonus Ordinance, the city can approve reductions to parking requirements as an incentive or concession in exchange for construction of affordable housing. City Provisions for Density Bonus, Height Increases, and Setbacks Concessions Housing designed at higher densities (density bonuses) and with regulatory concessions on building height and setback requirements help to enable construction of more homes, which can help reduce the cost of housing. The city’s zoning measures described below allow for density bonuses and concessions on building height and setbacks. These zoning measures support housing designed at higher densities and with modified standards, like building height and setbacks, which help reduce the cost of housing.  Inclusionary Housing Ordinance (Carlsbad Municipal Code Chapter 21.85) The city’s Inclusionary Housing Ordinance allows the city to approve “offsets” to the cost of constructing of affordable housing. Offsets are defined by the ordinance as “concessions or assistance to include, but not be limited to, direct financial assistance, density increases, standards modifications [which includes standards for building height and setbacks] or any other financial, land use, or regulatory concession which would result in an identifiable cost reduction enabling the provision of affordable housing.”  Density Bonus Ordinance (Carlsbad Municipal Code Chapter 21.86) The city’s Density Bonus Ordinance implements state law (Government Code §65915), which requires the city to approve a density bonus and development incentives and concessions when a housing developer agrees to construct a certain amount of affordable housing. CONCLUSION The city’s current zoning measures encourage alternative housing that is affordable by design (small homes and homes that are efficient/flexible in design) and will continue to encourage and allow for such housing through various zoning measures. The city will also continue to April 19, 2023 Item #2 Page 13 of 33 routinely update its zoning measures to ensure compliance with state laws related to alternative housing that is affordable by design, such as accessory dwelling unit law. April 19, 2023 Item #2 Page 14 of 33 Exhibit 3 HOUSING ELEMENT PROGRAM 1.3 OBJECTIVE D: Alternative Housing HOUSING ELEMENT PROGRAM Program 1.3: Alternative Housing Under this program, the city will continue to support alternative types of housing, such as managed living units or “micro-units,” to accommodate extremely-low-income households. Objective D Where appropriate, utilize the city’s regulatory powers (e.g., land use and fees) to encourage development of alternative housing. REGULATORY POWERS USED TO ENCOURAGE ALTERNATIVE HOUSING California Department of Housing and Community Development (HCD) mission through the Affirmatively Furthering Fair Housing (AFFH) is to, “promote safe, affordable homes and vibrant, inclusive, sustainable communities for all Californians. When housing choice and access are limited because of someone’s race, sexual orientation, disability status, or other protected characteristics, there are far-reaching impacts on their lives. These impacts include access to job opportunities, access to quality education, and impacts to mental and physical health.” In 2018, the California State Legislature passed AB 686 to require all housing elements to be updated to protect the requirements to affirmatively further fair housing within California state law including the requirement to encourage and not constrain the development of alternative housing and thereby allowing a variety of housing choices and access to housing for all Californians with special needs. Alternative housing can accommodate aging adults, students, low-income households and people who are considered handicapped under state or federal law. Consistent with state law and as required pursuant to HCD’s direction to the City of Carlsbad through their review of City of Carlsbad’s recently adopted Housing Element, the city has or is currently developing regulations to encourage and streamline the development of alternative housing. April 19, 2023 Item #2 Page 15 of 33 The types of alternative housing that the City of Carlsbad encourages through its regulatory powers include: Alternative Housing Type Land Use Regulation Allowance for Alternative Housing Managed Living Units Allowed in the Village and Barrio Master Plan within the Village Center, Village General, and Pine Tyer districts, subject to the approval of a conditional use permit and special regulations provided in Village and Barrio Master Plan Section 2.6.8(E). Accessory Dwelling Units and Junior Accessory Dwelling Units Subject to Carlsbad Municipal Code Section 21.10.030, in all areas of the city, an accessory dwelling unit may be attached to or detached from a primary dwelling, integrated into an existing or a proposed single-family home or multi-family residences, or created by converting existing space such as a garage. Junior accessory dwelling units are allowed within any single- family home. See below for more information on city regulations that encourage development of accessory units. Housing for Senior Citizens Per Carlsbad Municipal Code Chapter 21.84, housing for senior citizens is allowed in all residential zones where multifamily housing is allowed. Chapter 21.84 provides comprehensive standards and regulations to ensure housing is designed to meet the special needs of senior citizens (i.e., physical, social and economic needs). Employee Housing The 2023 Zoning Code Clean-up added a new definition of employee housing (CMC 21.04.140.6) and allowed for this use in the permitted uses for up to six units in the zones within residential zones to be consistent with state law. This change is effective outside of the Coastal Zone, and the rest is waiting for review and consideration by the Coastal Commission. Farmworker Housing Per the Employee Housing Act, farmworker housing can include conventional and nonconventional structures, such as: living quarters, boardinghouse, tent, bunkhouse, mobilehome, manufactured home, recreational vehicle and travel trailers. Carlsbad Municipal Code Section 21.10.125 provides standards to allow farmworker housing consistent with the Employee Housing Act. Farmworker housing is allowed in all areas of the city where agricultural uses are allowed. Residential Care Facilities Transitional Housing Supportive Housing Carlsbad Municipal Code Title 21 and the Village and Barrio Master Plan allow the following alternative housing in all residential and commercial zones: • Residential care facilities (nonmedical care for six or fewer persons) • Transitional and supportive housing (temporary housing with supportive services) April 19, 2023 Item #2 Page 16 of 33 Low Barrier Navigation Centers An amendment to the Zoning Ordinance is currently pending City Council approval (presented to Planning Commission April 5, 2023) that will allow Low Barrier Navigation Centers (shelters that provide temporary housing and include case managers, health services, and a focus to move people into permanent housing) in industrial zones where emergency shelters are allowed, as well as any areas zoned for mixed use, including commercial zones C-1, C-2, and C-L, and residential zones R-2, R-3, R-P, R-T, RD-M, and RMHP. The following are examples of updates to the city’s regulations that encourage and streamline the development of alternative housing by lessening permitting restrictions, removing permitting constraints, streamlining the permitting process and/or allowing for more flexible development standards.  ADU Amendments 2020 and 2023 Amendments to the city’s ADU regulations were approved in 2020 and additional 2023 amendments are pending City Council approval. The amendments expand allowances for ADUs/JADUs, reduce parking restrictions, increase the maximum height limitation, streamline the permitting process and exempt ADUs less than 750 sq. ft. from impact fees. To implement streamlined permitting for ADUs, the city is nearing completion of a permit-ready ADU program that includes pre-approved building plans, a streamlined permitting process and the potential for reduced permitting fees. The permit-ready ADU program will be made available to the public in April/May 2023. This is an implementation program in Housing Program 1.2: Promote the Development of Accessory Dwelling Units.  Inclusionary Housing In-Lieu Fees 2022 On March 22, 2022, the City of Carlsbad City Council approved an update to its inclusionary housing in-lieu fees via City Council Resolution No. 2022-077. The update included the following: That the inclusionary housing in-lieu fee for residential development projects proposing two to six units change from $4,515 per market-rate unit to $15 per square foot of net building area for each market-rate unit, adjusted annually based on the Engineering News-Record Construction Cost Index. Under the updated inclusionary housing in-lieu fee program, the per square foot fee better reflects the current construction cost gap between market-rate and affordable housing. By its design, applying a cost per square foot approach for an in-lieu fee April 19, 2023 Item #2 Page 17 of 33 encourages the construction of smaller, ideally less expensive units – the smaller the units, the smaller the fee. Additionally, under the new inclusionary housing ordinance, for projects proposing less than or equal to six units, the in-lieu fees may be waived if a detached or attached accessory dwelling unit is constructed concurrent with construction of the new market- rate home, deed restricted for low-income households for 30-years and occupied by income-qualified families.  Zoning Ordinance Cleanup 2022 Approved by City Council via Ordinance CS-432 on Sept. 27, 2022, and pending Coastal Commission approval, the Zoning Ordinance Cleanup included several amendments to zoning standards that encourage alternative housing development as listed below: • Removed requirements for Growth Management Control Point compliance but kept maximum density range requirement. Consistent with state law, this requirement will make sure that development is not restricted based on an outdated growth management control point but still compliant with the density requirement. • Increase in height/stories for pitched roofs. This allows for more flexibility in residential building design. • Removed building separation setback limitations for ADU/JADUs. This amendment will allow for less restrictive development setback requirements for ADUs/JADUs. • Amend expiration requirements for conditional use permits. This amendment will allow for automatic extensions unless the property owner chooses not to extend, thereby streamlining the process for housing that requires Conditional Use Permits such as residential care facilities. • Removed pool setbacks from the zoning ordinance. This amendment will allow for less restrictive setback requirements for building ADUs/JADUs near pools. • Implement Housing Element Program 1.3 g. by defining “employee housing, small”, redefining “family” to include employee housing serving six or fewer persons, permitting employee housing (serving six or fewer persons) in all residential zones, and revised parking standard for Residential Care Facilities to be less restrictive. This amendment allows for employee housing serving six or fewer persons to be permitted in residential zones. It also provides less restrictive parking standards for residential care facilities as directed by HCD.  Housing Element Rezoning Program The city of Carlsbad continues to implement Housing Element Program 1.1: Provide Adequate Sites, Objectives a. - e., which will result in housing capacity that meets the Regional Housing Needs Allocation quantities and income levels as established in the Housing Element. Implementation of this program will provide additional opportunities for alternative housing through the rezoning of sites at higher densities, establishing zones with densities higher than currently allowed in the City of Carlsbad, increasing April 19, 2023 Item #2 Page 18 of 33 minimum density requirements, and expanding options for residential development of city-owned land. CONCLUSION The examples above demonstrate the city utilizing its regulatory powers to encourage development of alternative housing and will continue to do so. April 19, 2023 Item #2 Page 19 of 33 Exhibit 4 HOUSING ELEMENT PROGRAM 1.3 OBJECTIVE E: Fee by Area vs. Unit HOUSING ELEMENT PROGRAM Program 1.3: Alternative Housing Under this program, the city will continue to support alternative types of housing, such as managed living units or “micro-units,” to accommodate extremely-low-income households. Objective E Evaluate and implement, as appropriate, a development fee structure for these units based on a per square foot basis rather than per unit basis. EVALUATION OF DEVELOPMENT FEES FOR ALTERNATIVE HOUSING Inclusionary Housing In-Lieu Fees 2022 Inclusionary Housing fees are one of the main fee types that generate revenue to provide for affordable housing within the city. Carlsbad Municipal Code Chapter 21.85 requires projects to provide affordable housing (15% of project units); projects of one to six units have the option to pay an inclusionary housing in-lieu fee instead of providing the affordable units. Accessory dwelling units are not subject to the inclusionary requirements; however, the inclusionary requirements and in-lieu fee are applicable to managed living units and other alternative housing provided they are dwelling units. On March 22, 2022, the City Council approved an update to its inclusionary housing in-lieu fees via City Council Resolution No. 2022-077. The update included the following: That the inclusionary housing in-lieu fee for residential development projects proposing two to six units change from $4,515 per market-rate unit to $15 per square foot of net building area for each market-rate unit, adjusted annually based on the Engineering News-Record Construction Cost Index. Under the updated inclusionary housing in-lieu fee program, the per square foot fee better reflects the current construction cost gap between market-rate and affordable housing. By its design, applying a cost per square foot approach for an in-lieu fee encourages the construction of smaller, ideally less expensive units in that the decreased cost burden may lead to additional developments with smaller units. Additionally, under the new inclusionary housing ordinance, for projects proposing less than or equal to six units, the in-lieu fees may be waived if a detached or attached accessory dwelling unit is constructed concurrent with construction of the new market-rate home, deed restricted for low-income households for 30-years and occupied by income-qualified families. April 19, 2023 Item #2 Page 20 of 33 What development fees apply to alternative housing? In addition to the changes done to inclusionary housing, there are other fees for housing types. The most common type of alternative housing in Carlsbad is accessory dwelling units. Managed living units are also permitted in the Village and Barrio Master Plan area. The following evaluates the primary development fees (Planning and Building Department fees) applicable to these alternative housing types. Note that because of the small size of accessory dwellings, they are exempt from some fees that apply to residential dwellings. For example, school fees do not apply to ADUs less than 500 square feet and development impact fees (e.g., park and traffic impact fees, public facility fee, community facility district fee) do not apply to ADUs, except ADUs over 750 square feet pay the public facility fee and community facility district fee. Accessory Dwelling Units  Minor Coastal Development Permit. Accessory dwelling units located in the Coastal Zone are required to get approval of a Minor Coastal Development Permit (MCDP). MCDPs are Planning Department permits and the fees are based on staff time to process. A MCDP is a flat rate of $1,111.00.  Building Permits. All accessory dwelling units require a building permit. The building permit fees for accessory dwellings are a flat cost up to 1,000 square feet ($1,251) and based on a per square foot cost ($0.27 – $0.44) above 1,000 square feet. Accessory dwellings are limited to a maximum of 1,200 square feet. City staff is currently preparing a draft “permit-ready” program for accessory dwelling units. As part of the program, staff is analyzing the city’s current development fees for accessory dwelling units to determine changes to fees to incentivize development of accessory dwellings. Based upon the evaluation of this information, permit fees for ADUs in the city of Carlsbad are below the average permit fees as compared to other jurisdictions. Managed Living Units  Conditional Use Permit. Managed living units are developed in a multifamily format and are subject to approval of a conditional use permit (CUP). MCDPs are Planning Department permits and the fees are based on staff time to process. The fee for a CUP is a flat rate of $5,821.00.  Coastal Development Permit. Managed living units located in the Coastal Zone are subject to approval of a coastal development permit (CDP). CDPs are Planning Department permits and the fees are based on staff time to process. A CDP is a flat rate of $2,831.00 (1-4 units) or $4,610 (5 or more units).  Building Permits. Managed living units are considered multifamily dwellings and require a building permit. The building permit fees for multifamily dwellings are a flat cost up to 500 square feet ($984) and a per square foot cost above 500 square feet ($0.54). Managed living units are limited to a maximum of 350 square feet. April 19, 2023 Item #2 Page 21 of 33 CONCLUSION For accessory dwelling units (primary type of alternative housing in Carlsbad), planning and building permit fees are a flat cost (accessory units over 1,000 square feet benefit from a per square foot fee for square feet over 1,000). For managed living units, planning fees are a flat cost and building permit fees are a flat cost up to 500 square feet, but all floor area above that benefits from a per square foot fee. The 2022 inclusionary housing in-lieu fee update implements a development fee structure for units based on a per square foot basis rather than unit basis for projects proposing two to six units. The city is also undertaking an update to its Growth Management Program as required by the Housing Element. Depending upon the standards that are updated by the City Council, there will be updated nexus studies for other impact fees and they could be considered to be updated to a square foot basis, such as the park development impact fee, mobility impact fee, or public facility impact fee. April 19, 2023 Item #2 Page 22 of 33 Exhibit 5 HOUSING ELEMENT PROGRAM 1.8 OBJECTIVE D: Live/Work Zoning HOUSING ELEMENT PROGRAM Program 1.8: Mixed Use The city will encourage mixed-use developments that include a residential component that provides housing for lower- and moderate-income households. For properties where the city has an ownership interest, such as the Shoppes @ Carlsbad, the city will seek to negotiate higher production of lower-income units than would be required under current city code. Major commercial centers should incorporate, where appropriate, mixed commercial/ residential uses, with a focus on the production of lower-income units. Objective D Evaluate and consider the expansion of live/work zoning allowances citywide. EVALUATION OF EXPANSION OF LIVE/WORK ZONING ALLOWANCES CITYWIDE What is live/work? Live/work units allow a business owner to live on the same property or area as their business. The live/work arrangement is different from a home office situation (home occupation), as live/work units involve on-site employees and customers, while home occupations are generally prohibited from having employees and customers within the home. A live-work unit is a special type of mixed-use development because it possesses all the properties of a mixed-use development. In general, there are three forms of mixed-use development, which can be categorized in three ways: • live-with, when living and working occur in the same space (i.e., live/work units). • live-near, when living and working are separated by a wall, floor or ceiling (i.e., vertical or horizontal mixed-use). • live-nearby, when living and working occur on the same property but not necessarily in the same building (i.e., horizontal mixed use). Live/work is a “live-with” type of mixed-use development that is a mix of residential and non- residential uses in a mixed-occupancy building. “Live-near” and “live-nearby” mixed-use development offer the opportunity for residents to live near work. However, “live-near” and “live-nearby” mixed-use buildings may have commercial uses on the ground floor and April 19, 2023 Item #2 Page 23 of 33 residential uses on upper floors, the residents of which may not work in the commercial space below. Where are live/work units typically found? Live/work units are typically found in areas that support a mix of residential and nonresidential uses; where local jurisdictions have established zoning regulations to ensure allowed uses are compatible and site and building design support a live/work environment. Due to the nonresidential nature of live/work units, such uses may not be compatible in areas designed solely for residential use. Also, live/work units may not be appropriate in nonresidential areas where a residential use would not be compatible with nonresidential uses (e.g., noise, odors and hazards associated with commercial and industrial uses). Where are live/work units currently allowed in Carlsbad? Table 1: Where Live/Work Units are Allowed in Carlsbad Carlsbad Area Notes Village and Barrio Master Plan  Live/work is permitted in the Village Center, Village General and Pine Tyler districts), subject to a conditional use permit  Development standards limit the “work” component to professional office and artisan uses only.  Mixed-use is allowed in the same districts as live/work units, as well as the Freeway Commercial and Hospitality districts. Mixed- use could provide for live-nearby even if not directly connected to the “work” structures.  There are 201.31 acres in the Village and Barrio Master Plan where mixed-use is allowed. Zones: C-2 (general commercial) C-L (local shopping center)  Live/work not listed as a permitted use, but could be allowed as “mixed-use” and allowed with a Site Development Plan along with Commercial Development  Residential use must at least 15 units per acre and secondary use to the primary commercial use. This would include live – work units.  Residential use can be allowed as vertical or horizontal mixed use1  There are 272.55 acres of commercially zoned land in the city zoned where mixed-use is allowed. Combined with the districts in the Village and Barrio Master Plan, there are 473.86 acres (2% of the city) where mixed-use is allowed. 1 Ordinance CS-422 was approved by the City Council and is effective outside of the Coastal Zone. It is currently pending review from the Coastal Commission for other areas: https://content.qcode.us/lib/carlsbad_ca/alerts/documents/ordinance_cs_422.pdf April 19, 2023 Item #2 Page 24 of 33 Poinsettia Properties Specific Plan  Planning Area 6 allows mixed-use development (adjacent to Poinsettia Coaster Station)  Developed with live/work units (Bluwater Crossing) Where are live/work units is allowed in other cities in the region? Table 2: Where Live/Work is Allowed in Other Cities City Where are live/work units allowed? Oceanside  “Live/work quarters” are allowed in RH (residential high density) and RT (residential tourist zones) but are limited to adapting buildings originally designed for industrial or commercial occupancy.  “Mixed-use”, with residential, allowed in commercial zones. San Diego  “Live/work quarters” are allowed in some commercial zones and are “studio spaces in buildings that were originally designed for industrial or commercial occupancy that have been converted to integrate living space into the workspace.” Vista  “Live/work units” are allowed in the Mixed-Use Zone, which allows for a mixed of residential and commercial uses. Encinitas  “Live/Work” not specifically listed as a permitted use  Commercial and mixed-use zones within specific plan areas, which allow residential as part of “mixed-use” development. San Marcos  “Live/Work” not specifically listed as a permitted use  “Mixed-use”, with residential, allowed in Mixed-Use 1 and Mixed-Use 2 Zones. Poway  “Live/Work” not specifically listed as a permitted use  “Mixed-use”, with residential, allowed in commercial zones. Solana Beach  “Live/Work” not specifically listed as a permitted use  “Mixed-use”, with residential, allowed in commercial zones. Table 2 shows that, like Carlsbad, “live/work” units are typically allowed as part of “mixed-use” development in commercial zones. Two cities surveyed categorize “live/work quarters” separate from “mixed-use”, and in those cases, the “live/work quarters” are allowed only in buildings originally designed for industrial or commercial use. What are some opportunities to allowing live/work units in Carlsbad?  The benefits of the live/work unit type would vary from project to project; however, combining residential and non-residential uses generally provides a variety of April 19, 2023 Item #2 Page 25 of 33 environmental, economic, and social benefits that align with other city goals. Live/work arrangements can support nonvehicular access, shorten trips, and facilitate alternative modes of transportation. Live/work arrangements can take advantage of existing infrastructure and minimize the need for new facilities or public investments. Live/work arrangements can also help support strong community for the area, adding to the security, vibrancy, and vitality of mixed-use areas.  Mixed-use, including live/work units, are currently allowed in 2% of the city and 66% of the commercial areas in the city, including the Village and Barrio Master Plan area.  Beyond the areas in Carlsbad where live/work units are already allowed (Table 1), there are two zoning designations that could be evaluated further for expansion of live/work uses: o Residential-Professional (R-P) Zone: this zone occurs in small areas (8.2 acres total) near the Village and Barrio Master Plan area. It allows for either residential or office use on a parcel of land, not both (choice with exclusive division). However, as this area consists of a mix of residential and office uses on separate parcels, the zone could potentially be a candidate to allow live/work units, subject to more evaluation and a revision to the zoning standards to allow the use. This draft strategy would, in turn, be analyzed for environmental impacts through CEQA. If allowed in the zone, the “work” component may be limited to the office uses currently allowed in the R-P zone. o Office (O) Zone: The O zone is intended for professional offices and related commercial uses. The zone is applied in limited areas (130.7 acres total) throughout Carlsbad. The zone currently does not allow residential uses; however, the O zone could be a candidate to allow live work units, as such a use would generally be compatible with office and commercial uses. Addition of residential uses to this zone would require a General Plan Amendment, Local Coastal Program Amendment, and modification to the Carlsbad Municipal Code. This draft strategy would, in turn, be analyzed for environmental impacts through CEQA. If allowed in the zone, the “work” component may be limited to the office uses currently allowed in the O zone. What are some challenges to allowing additional live/work units in Carlsbad?  Flex live/work arrangements allow some areas to be closed off during work hours an opened back up when not in use to provide extra living space. The blending of personal and business floor areas could introduce some security and code related issues.  Flex live/work arrangements may not have enough space for storage or for other family members, which could result in occupancy-related enforcement issues.  Live/work arrangements can add additional activity to an area that can’t support it (bringing additional noise, light, traffic, etc.).  Of all zoning designations within the city, two types of zones would be the least compatible with live/work uses: April 19, 2023 Item #2 Page 26 of 33 o Residential zones – home occupations are currently allowed in all residential zones, provided there are no employees or customers on site, and subject to standards that ensure the home occupation does not disrupt the neighborhood, including, but not limited to, noise from equipment, traffic, lighting, offensive odor or electrical interference. This effectively allows live/work units in a number of areas. Not regulated by our zoning ordinance, the pandemic has resulted in many employees working out of homes in office jobs at least part time that normally would require a community to the office five days a week. A more intensive “work” aspect of a live/work unit could be disruptive to a residential neighborhood, and therefore, expanded live/work units may not be appropriate to allow in residential zones. The types of “work” uses typically allowed in a live/work unit include professional offices, some medical offices (e.g., chiropractors and dentists), light commercial uses, including the sale of items produced onsite, and artist studios. All of the uses would be allowed to have employees and customers on the premises, could be allowed to manufacture products onsite, could be allowed to have heavy duty commercial vehicles to make deliveries, and would be allowed signage and parking for staff and customers; all of which could adversely impact an area intended solely for residential use. These uses are not currently allowed in our residential zones. Home occupations on the other hand still allow the ability to work from home but are regulated (Carlsbad Municipal Code Section 21.10.040) to minimize risk of conflicts. For example, the city’s regulations limit a home occupation to no more than 20% of the home’s floor area, don’t allow employees or customers on the premises, no external alteration to the appearance of the home, no sale of goods on the premises, no deliveries or pickups by heavy duty commercial vehicles, no signage, no storage of materials or equipment visible from exterior of property, no impacts to off-street parking, and no external effect that is inconsistent with a residential zone, such as noise, traffic, lighting, offensive odor or electrical interference. o Industrial zones – Industrial uses may pose safety concerns, such as hazardous materials and excessive noise, that would preclude the location of a residential use within a certain proximity; and vice-versa, if a residential use were permitted in an industrial zone it would preclude the location of industrial uses within a certain proximity. For this reason residential uses are expressly prohibited in some industrial specific plan areas. Prohibiting residential uses ensures that the area is protected for the industrial uses for which the zone is intended. The majority of Carlsbad’s industrial zoned areas are located around the McClellan Palomar Airport and along Palomar Airport Road. The safety and noise hazards from the airport are an additional constraint that cause residential uses to not be permitted or strictly limited in the areas surrounding the airport. April 19, 2023 Item #2 Page 27 of 33 The city is currently studying the industrial zoned areas for housing opportunities. Through this study, some industrial areas may be identified as areas where residential uses would be compatible.  Further, even where a live/work use is allowed, case studies from other jurisdictions reveal that over time the demand for the residential component may outweigh that for nonresidential. “There is a demonstrated tendency for live-work space to revert to purely residential use, regardless of how it was permitted or represented. …Because it is intended to be a flexible type, it is fair to say that work will occur in a live-work unit at some time, but that work activity may not always be present.”2 When considering where and how to permit live/work units, it should be anticipated that the use could ultimately function primarily as a residential use, rather than the intended mix of uses. CONCLUSION The city’s current zoning provisions for live/work units are generally consistent with how other cities in the region allow such uses. Expanding the zoning allowances for live/work units is not recommended in residential or industrial zones. Expansion options to evaluate further could include the Residential-Professional (R-P) Zone and Office (O) Zone. 2 Thomas Dolan, “The Ten Truths of Live Work Planning Policy,” livework.com, www.live-work.com/live-work/the- ten-truths-of-live-work-planning-policy/, Accessed Mar. 6, 2023. April 19, 2023 Item #2 Page 28 of 33 Exhibit 6 HOUSING ELEMENT PROGRAM OBJECTIVE 2.13 J: Religious Institution Emergency Shelters HOUSING ELEMENT PROGRAM Program 2.13: Housing for Homeless Carlsbad will continue to facilitate and assist with the acquisition, for lease or sale, and development of suitable sites for low barrier emergency shelters and transitional and permanent supportive housing for the homeless population. Objective J Evaluate the potential to allow for emergency shelter or other temporary housing on properties owned by religious institutions. Implementation would be through appropriate updates to the city Zoning Ordinance. EVALUATION OF EXPANSION OF EMERGENCY SHELTER ZONING ALLOWANCES TO RELIGIOUS INSTITUTION PROPERTY What are emergency shelters? “Emergency shelter” is a broad term applied to a variety of accommodations intended for the temporary housing of individuals experiencing homelessness. Both the California Health and Safety Code (Section 50801(e)) and the Carlsbad Zoning Ordinance (Section 21.04.140.5) explain that emergency shelters have “minimal supportive services” and that occupancy is limited to “six months or less” and the Health and Safety Code further details that “No individual or household may be denied emergency shelter because of an inability to pay.” California Government Code Section 65583(a)(4)(C) also equates the term “emergency shelter” with “navigation center”, “bridge housing”, and “respite or recuperative care”. Structures established as emergency shelters are subject to all applicable health and safety codes as well as applicable property development standards of the zone in which they are located and as specified in local code sections related to the proposed use(s). Where are emergency shelters typically found? In the San Diego region, emergency shelters are generally allowed in zones permitting mid-to- high density residential, commercial, and industrial uses and generally require a use permit. April 19, 2023 Item #2 Page 29 of 33 Religious institutions, on the other hand, are generally allowed in any zone subject to a use permit, although they are generally not allowed in zones intended for low density residential, agriculture, open space, public utilities, transportation infrastructure, etc. Development standards associated with placement of emergency shelters generally include provisions to ensure adequate distance between the shelter and nearby residentially zoned property and between individual shelters. Where are emergency shelters currently allowed in Carlsbad? Emergency shelters of 30 beds/occupants or less are currently allowed as a permitted use in the M: Industrial zone and the P-M: Planned Industrial zone. Emergency shelters of more than 30 beds/occupants are allowed subject to a Conditional Use Permit in the M: Industrial and the P-M: Planned Industrial zones. Development and operational standards are provided in Zoning Ordinance Section 21.32.070: Emergency Shelter. An amendment to the Zoning Ordinance is currently pending City Council approval (presented to Planning Commission April 5, 2023) that will allow Low Barrier Navigation Centers (shelters that provide temporary housing and include case managers, health services, and a focus to move people into permanent housing) in industrial zones where emergency shelters are allowed, as well as any areas zoned for mixed use, including commercial zones C-1, C-2, and C-L, and residential zones R-2, R-3, R-P, R-T, RD-M, and RMHP. Religious institutions (churches, synagogues, temples, convents, monasteries, and other places of worship as listed in the Carlsbad Zoning Ordinance) are allowed with a Process 2 Conditional Use Permit in the E-A, R-A, R-E, R-1, R-2, R-3, R-P, R-T, R-W, RD-M, C-F, C-1, O, C-2, C-T, C-M, M, P-M, and RMHP zones; in the P-C zone as allowed by each applicable master plan/specific plan; and in the Village and Barrio Master Plan with a Process 3 Conditional Use Permit in all zones. Religious reading rooms — separate from a church — are allowed with a Process 1 Conditional Use Permit in the C-L zone and neither religious institutions nor religious reading rooms are allowed in the H-O, O-S, P-U, L-C, T-C and CR-A/OS zones. Where are emergency shelters allowed in other cities in the region? Table 1: Where Emergency Shelters are Allowed in Other Cities City Where are emergency shelters allowed? County of San Diego  “Emergency Shelter” regulations in Zoning Ordinance Section 6911: Miscellaneous General Regulations/Emergency Shelters. Includes definition and development standards.  Permitted use in industrial zones only, although the Zoning Ordinance does not apply to existing or new emergency shelters located on properties owned, leased, or operated by the County of San Diego or state or federal public lands within the County of San Diego.  No special allowance for properties owned by religious institutions. April 19, 2023 Item #2 Page 30 of 33 City Where are emergency shelters allowed? City of San Diego  “Homeless Facility” regulations in Zoning Ordinance Section 141.0412: Separately Regulated Institutional Uses. Includes definition and development standards.  Permitted use subject to a Conditional Use Permit in commercial, industrial, and mixed-use zones.  No special allowance for properties owned by religious institutions. Oceanside  “Emergency Shelter” definition included in Zoning Ordinance Section 413 J.: Public and Semipublic Use Classifications and development standards included in Section 3044: Site Regulation/Emergency Shelters  Permitted use in the IL: Limited Industrial zones (except for a portion along Oceanside Boulevard)  Permitted use subject to a Conditional Use Permit in other medium/high density residential, commercial, and industrial zones.  No special allowance for properties owned by religious institutions El Cajon  “Emergency Shelter” definition included in Zoning Ordinance Section 17.105.202 and development standards included in two sections:  Section 17.225.180 Misc Special Uses and Regulations: Transition Service Centers and Emergency Shelters o Permitted subject to a Site Development Permit in the Heavy Commercial and Industrial zones and subject to a Conditional Use Permit in the General and Regional Commercial zones.  Section 17.225.185 Misc Special Uses and Regulations: Emergency Housing Pilot Project o Permitted subject to an Administrative Zoning Permit (Director approval) in residential zones and zones with the mixed-use overlay that currently have a non-governmental institutional primary use (i.e. religious institution) o Temporary pilot project currently scheduled to sunset in December 2024. As shown above, the City of Carlsbad’s approach to siting emergency shelters is in line with the County of San Diego’s approach and more restrictive than the cities of San Diego, Oceanside, and El Cajon. Of those surveyed, only the City of El Cajon provides specific allowances for emergency shelters on religious institution properties. The City of El Cajon’s Emergency Housing Pilot Project can serve as a template for consideration by the Planning Commission and City Council. This project is unique in that it creates opportunities for providing emergency shelters outside of the traditional zones of high intensity residential, commercial, and industrial zones. April 19, 2023 Item #2 Page 31 of 33 Development standards in El Cajon’s Emergency Housing Pilot Project in addition to the underlying zone and non-governmental institutional use include:  Minimum lot size of 1.5 acres  Frontage on a primary or secondary thoroughfare  An option to provide emergency housing through traditional built structure or “tiny home” unit, subject to applicable standards • Zoning Ordinance language states that emergency shelters do not include tents, membrane structures, mobile homes, or recreational vehicles.  Sufficient off-street parking to accommodate the primary use and the emergency housing operation  Adherence to underlying zoning and development standards  Submittal of a detailed management/operational plan According to analysis contained in an August 11, 2020 El Cajon City Council staff report on the proposal, staff indicated that adopting the development standards above resulted in 13 eligible properties throughout the city. As of March 9, 2023, the city had received one proposal. What are some opportunities and challenges to allowing emergency shelters on religious institution properties in Carlsbad? Preliminary Geographic Information Systems (GIS) analysis of properties owned by religious institutions in Carlsbad reveal a range of properties and locations throughout the city.  Properties owned by religious institutions include more than churches, synagogues, mosques, and temples: they also include residences/condos/timeshares, schools, parking lots, and undeveloped land.  Occur in all four quadrants of the city, although the northwest contains the most properties (33 of 52) and the northeast quadrant contains only one.  A plurality (46%) of properties owned by religious institutions are in residentially zoned areas, 29% occur in the Village/Barrio, 17% are in commercially zones areas, 6% are in open space zones, and 2% are in industrial areas. • Only Las Posada de Guadalupe, Carlsbad’s existing homeless shelter, occurs in either the M or P-M industrial zones where emergency shelters are currently allowed.  The size of properties ranges from a low of 0.013 acres (Calvary Chapel part of a larger church complex) to a high of 13.04 acres (also part of Calvary Chapel complex), with an average lot size of 2.23 acres.  If Carlsbad utilized the same criteria as El Cajon in selecting sites (assuming parking demand could be met, which would require subsequent verification), approximately half of the 52 religious institution properties would be eligible. April 19, 2023 Item #2 Page 32 of 33 The development and operational standards included in Zoning Ordinance Section 21.32.070: Emergency Shelter mirror those contained in other cities’ codes related to shelter siting, density, capacity, parking, sanitation, security/supervision, and support services allowed. These existing standards could be applied to emergency shelters on religious institution properties or modified to address any additional considerations associated with collocation with the religious institution or the potential for closer proximity to residential uses. Because of the diversity of the location and use type of properties owned by religious organizations, an initial step would be to determine a subset of religious institution properties that would be compatible with emergency shelters. A second consideration related to ownership is whether properties leased, but not owned, by religious institutions should be considered. Especially since emergency shelters are time-limited housing, the emergency shelter use could be paired with an existing lease or use permit, as appropriate. Given the differences in regional location between the City of Carlsbad and the City of El Cajon, additional consideration is warranted to the proximity of parcels to public transportation and off-site supportive/transitional services. In Carlsbad, frontage on even primary and secondary thoroughfares may not correspond with sufficient public transportation to meet occupants’ transportation needs if they do not own a vehicle or otherwise have transportation. Similarly, additional consideration to the proximity to off-site services is warranted, given that emergency shelter is a short-term housing option and occupants may need assistance in securing longer- term housing. Lastly, and most importantly, further engagement with the faith community and religious institutions in Carlsbad is advisable. The City of El Cajon was approached by a faith-based organization, initiated the effort to create the pilot project, and is the one applicant the city has received to date. Carlsbad could assess the interest from the religious community and potentially identify a champion for the project to raise awareness and to ensure widespread participation in its development. The level of interest and commitment could also be evaluated by city leaders to balance with the time and cost associated with development and enaction of the code amendment. CONCLUSION Expanding the permitted use of emergency shelters to include religious institution properties is feasible and has precedent within the San Diego region. While additional resources would be required to develop and enact a code amendment for Carlsbad, the city has previous experience with an existing homeless shelter (La Posada de Guadalupe) and has a number of religious institution properties that may have interest and meet the characteristics necessary to provide this housing option. April 19, 2023 Item #2 Page 33 of 33 Housing Element Programs –Evaluation and Update Robert Efird, Principal Planner Scott Donnell, Senior Planner Shelley Glennon, Associate Planner Community Development Department April 19, 2023 11 { City of Carlsbad •Purpose •Housing Element background •Program evaluations •Next steps AGENDA 12 { City of Carlsbad •Enable commission evaluation of six programs •Provide evaluation in a public setting •Discussion PURPOSE 13 { City of Carlsbad •Adopted 2021 •Serves as the 2021-2029 housing strategy •Implemented through policies and programs •Mandated and monitored by the state 14 HOUSING ELEMENT BACKGROUND { City of Carlsbad Program 1.1 N. –Density definition 15 PROGRAM EVALUATION { City of Carlsbad Program purpose •Evaluate definition of “density” •Determine if definition constrains projects •Recommend changes if needed •Planning Commission review 16 PROGRAM 1.1 N. EVALUATION {city of Carlsbad Density range example 17 PROGRAM 1.1 N. EVALUATION General Plan Land use designation Density range R-30 23-30 dwelling units/acre (du/ac) {city of Carlsbad Survey results PROGRAM 1.1 N. EVALUATION 0% 20% 40% 60% 80% 100% 120% R-4 (0-4 DU/AC) R-8 (4-8 DU/AC) R-15 (8-15 DU/AC) R-23 (15-23 DU/AC) R-30 (23-30 DU/AC) V-B (8-15 DU/AC) V-B (18-23 DU/AC) V-B (23-30 DU/AC) V-B (28-35 DU/AC) Approved Density as Percent of Maximum by Land Use Above 90% Below 90% 90% - - - - □ □ (cityof Carlsbad Findings •Definition is not a constraint •No change to definition required 19 PROGRAM 1.1 N. EVALUATION {city of Carlsbad Program 1.3 C. –Efficient, flexible living spaces 20 PROGRAM EVALUATION { City of Carlsbad Program purpose Develop code updates to encourage affordability by design 21 PROGRAM 1.3 C. EVALUATION {city of Carlsbad Affordable Housing Building Designs 22 PROGRAM 1.3 C. EVALUATION •Small Units (e.g. ADUs/JADUs) •Flexible Unit Building Design (Live/Work Units) •Green “Sustainable” Building Design •Reduced/Eliminate Parking (Site Design) •Density Bonuses (i.e. increased building height/habitable area) {city of Carlsbad Findings •The City of Carlsbad’s existing code regulations encourage affordable housing design •The city will continue to update its affordable design regulations as needed 23 PROGRAM 1.3 C. EVALUATION {city of Carlsbad Program 1.3 D. –Land use and fees to encourage alternative housing 24 PROGRAM EVALUATION { City of Carlsbad 25 PROGRAM 1.3 D. EVALUATION Program purpose Utilize the city’s regulatory powers to encourage alternative housing. {city of Carlsbad Laguna Estates Senior Living •Managed Living Units •ADUs/JADUs •Senior Housing •Employee Housing •Farmworker Housing •Residential Care Facilities •Transitional/Supportive Housing 26 PROGRAM 1.3 D. EVALUATION Alternative Housing Types •Low Barrier Navigation Centers •Group Homes Laguna Estates Senior Living Center {city of Carlsbad •ADU Amendments 2020 and 2023 •Inclusionary Housing In- Lieu Fee Update 2022 •Zoning Ordinance Cleanup 2022 •Housing Element Rezoning Program •Alternative & Temporary Housing Amendments 2023 27 PROGRAM 1.3 D. EVALUATION Code and Policy Amendments {city of Carlsbad Findings City currently utilizes its regulatory powers to encourage development of alternative housing and will continue to do so 28 PROGRAM 1.3 D. EVALUATION {city of Carlsbad Program 1.3 E. –Fees by area vs. unit 29 PROGRAM EVALUATION { City of Carlsbad Program purpose •Support alternative housing for extremely low- income households •Update land use fees to be based on building square footage rather than by unit (reduces fees for extremely low-income households) 30 PROGRAM 1.3 E. EVALUATION {city of Carlsbad Findings •The city currently implements planning and building permit flat fees and fees by square footage. •Nexus studies will be conducted to determine if impact fees can be updated based on square footage. 31 PROGRAM 1.3 E. EVALUATION {city of Carlsbad Program 1.8 D. –Live/Work Expansion 32 PROGRAM EVALUATION { City of Carlsbad Program purpose •Evaluate and consider expansion of live/work zoning allowances citywide •Recommended by Planning Commission at hearing on March 3, 2021 33 PROGRAM 1.8 D. EVALUATION {city of Carlsbad Live/work unit attributes •Living and working occur in the same space •Involves on-site employees and customers •Site and building design support live/work function •Typically in areas that support a mix of uses 34 PROGRAM 1.8 D. EVALUATION {city of Carlsbad Findings •Live/work units permitted in Village, commercial areas, Bluwater Crossing •Live/work and mixed use regulations like other cities in region •Expansion considerations •Residential-Professional and Office zones could be analyzed further for potential live/work expansion •Fully residential or industrial zones not recommended •Mixed results of economic viability 35 PROGRAM 1.8 D. EVALUATION Bluwater Crossing, Carlsbad {city of Carlsbad Program 2.13 J. –Religious Institution Emergency Shelters 36 PROGRAM EVALUATION { City of Carlsbad Program purpose Evaluate potential for emergency shelters on religious institution properties 37 PROGRAM 2.13 J. EVALUATION {city of Carlsbad Definition: Emergency Shelter •Temporary Housing •Minimal Supportive Services •Free of cost •Also known as o Navigation Center o Bridge Housing o Respite/Recuperative Care 38 PROGRAM 2.13 J. EVALUATION {city of Carlsbad Analysis •Religious institutions are allowed in most zones •April 5, 2023 PC action recommended expansion in line with state law •Carlsbad emergency shelter allowances in line with others in the region •El Cajon has an emergency shelter pilot program 39 PROGRAM 2.13 J. EVALUATION La Posada de Guadalupe, Carlsbad {city of Carlsbad Findings •State law has expanded existing options •Potential for further expansion •Site/program criteria central to program’s scope and extent •Community partnership important 40 PROGRAM 2.13 J. EVALUATION Meridian Baptist Church Emergency Shelter, El Cajon {city of Carlsbad Discussion 41 NEXT STEPS { City of Carlsbad