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HomeMy WebLinkAbout2023-12-14; Housing Commission; ; Housing Element Implementation – receive a report on the city’s rezoning effort and recommend minimum affordability requirementsMeeting Date: Dec. 14, 2023 To: Housing Commission From: Christian Gutierrez, Housing Services Manager Staff Contact: Scott Donnell, Senior Planner scott.donnell@carlsbadca.gov, 442-339-2618 Subject: Housing Element Implementation – receive a report on the city’s rezoning effort and recommend minimum affordability requirements Recommended Actions 1.Receive a report on the city process to revise land use standards and rezone properties to implement programs of the Housing Element. 2.Adopt a resolution (Exhibit 1) recommending a greater minimum affordability requirement to apply to development of residential units on city-owned parcels and all other parcels identified to implement the programs of the Housing Element and assist the city in meeting its Regional Housing Needs Assessment (RHNA), based on the findings contained therein. Executive Summary Jurisdictions throughout the state of California are required by law to develop and maintain a Housing Element, a mandatory part of the General Plan. The Housing Element provides the city with a coordinated and comprehensive strategy for promoting the production of safe, decent and affordable housing for varying income-levels within the community. The City Council adopted the current Housing Element on April 6, 2021, and the city received state certification of the document in July 2021. The element (Exhibit 2) includes approximately 40 programs broken down into nearly 160 objectives, with each objective having an identified implementation timeframe and/or requiring ongoing implementation throughout the 2021- 2029 “housing cycle.” The actions range from rezoning sites to permit additional housing units to developing streamlined permitting procedures. All time-specific program objectives are scheduled to be complete by December 2024. The rezoning of sites, listed as Program 1.1, requires the city to provide capacity for additional housing, and is a key program of the Housing Element. The program is necessary to ensure the Dec. 14, 2023 Item #3 Page 1 of 28 city can accommodate projected population growth through 2029 as estimated through a process known as the Regional Housing Needs Assessment (RHNA). Preparation of the 2021-2029 Housing Element and the identification of sites began in 2020, with significant public outreach in summer and fall 2021. On Feb. 15, 2022, the City Council directed consideration of 18 sites throughout Carlsbad. On Oct. 18, 2023, the Planning Commission recommended approval of the rezoning program to City Council, which is expected to consider the recommendation on Jan. 30, 2024. The comprehensive Planning Commission staff report is available as Exhibit 3. The city must complete implementation of Program 1.1 by April 2024. This purpose of this staff report is: • Provide the Housing Commission with an overview of the rezoning effort, and • Request the Housing Commission recommend a minimum affordability requirement to apply to city-owned sites and all other sites that have been identified to accommodate housing to satisfy RHNA. Discussion Background State Housing Element Law requires cities and counties to adopt and regularly update their Housing Element, a mandatory element of the city’s General Plan. As part of this recurring update process, the law requires cities to provide an adequate inventory of housing sites that can accommodate forecasted residential growth through a process known as the Regional Housing Needs Assessment or RHNA. The state, through the San Diego Association of Governments (SANDAG), projected the San Diego region’s growth for an 8-year projection period between April 15, 2021, and April 15, 2029, and set Carlsbad’s individual RHNA target at 3,873 total housing units. This total was further subdivided into units for very low income (1,311), low income (784), moderate income (749) and above moderate income (1,029) families. Through an evaluation of existing zoning, the city was able to accommodate all but 1,724 RHNA units (1,397 very low and low (or “lower”) income units and 327 moderate income units). Factoring in additional units as a recommended buffer1, the unit total for the city to provide through rezoning is 2,578 units of very low, low and moderate-income housing. On April 6, 2021, the City Council adopted an update to its Housing Element which formalized these housing goals and established the city’s comprehensive housing strategy through April 2029. Program 1.1 of the 2021-2029 Housing Element directs the city to rezone properties (i.e., change a property’s land use designation and zoning) to achieve this inventory. The city has identified 18 potential sites to rezone or identify for housing and has prepared an environmental impact report and various proposed amendments to land use documents such as the General Plan and Zoning Ordinance to support the proposed changes. Per state law, completion of the Housing Element Program 1.1 rezone program is required by April 2024, three years after adoption of the Housing Element. Failure to adopt the rezone program to 1 The state Department of Housing and Community Development (HCD) recommends cities add a 15 to 30% buffer to the remaining RHNA need (1,724 units) to ensure adequate sites will exist throughout the 8-year project period, or housing cycle. Dec. 14, 2023 Item #3 Page 2 of 28 implement Program 1.1 may result in the HCD decertifying the city’s Housing Element, which would greatly limit the city’s ability to regulate the type and location of housing built in Carlsbad. See Exhibit 4 on the penalties and consequences of Housing Element noncompliance. As described, the city must identify sites to accommodate 2,578 units. Accordingly, the city has since 2020 worked with the community to identify sites and has been studying 18 sites to provide housing. Three of the sites are city-owned. This culminated in the City Council’s Feb. 15, 2022, direction to study the currently identified 18 sites allocated as described for two different maps: • Map 1: Includes all 18 sites. • Map 2: Includes the 18 sites except sites 3, 8 and 15. Map 2 also includes an increased assumption of the number of units that could be built at the two Coaster Stations (sites 14 and 17) as compared to Map 1. The three city-owned sites are: • Site 2 - The Shoppes at Carlsbad Parking Lot: Located south of State Route 78 and west of El Camino Real, this 57-acre site consists primarily of the parking lot that surrounds the buildings at The Shoppes at Carlsbad mall. As proposed the site’s Regional Commercial land use designation would be supplemented by the R-23 and R-40 residential land use designations, which would allow up to 23 and 40 units per acre, respectively. In total, the city estimates 993 units could be built. • Site 6 – Crossings Golf Course Lot 5: This vacant site overlooks part of the Crossings Golf course and is located along College Blvd., midway between Faraday Ave. and Palomar Airport Rd. It is currently designated for industrial and office uses. If developed residentially, approximately 180 units could be built at a proposed density of R-30, which allows up to 30 units per acre. • Site 15 – City’s Oak Yard: Located at the west end of Oak Ave. in the Village, Site 15 is currently a city maintenance facility. If redeveloped under the property’s current land use designation, which permits both residential and commercial uses, approximately 24 units on the 1.3-acre site could be realized. Map 2 excludes Site 15. A map of all 18 sites is included as Exhibit 5. Fact sheets on each of the city-owned sites are included as Exhibit 6. The proposed project involves State-mandated updates to the Land Use and Zoning Maps, Zoning Ordinance, Local Coastal Program and various master plans and specific plans to accommodate the RHNA allocation through the year 2029. The effort to rezone sites would result in changes to planning-level documents only – it neither proposes nor approves development projects on any of the housing sites. Any subsequent construction on the sites would be subject to separate, future city review and approval. Dec. 14, 2023 Item #3 Page 3 of 28 Planning Affordable Versus Building Affordable As previously noted, local governments are required under state law to ensure that there is enough land available, with adequate zoning to accommodate its allocated RNHA for the entire housing cycle. So, what type of zoning makes a house affordable to an income group? In a word, density. The foundation of Housing Element Law is based on the premise that density is a proxy for affordability. The idea being, the more housing units on a site (density) translates to lower construction costs per unit, which translates to lower rental/sale prices of those units (affordability). As such, HCD assigns minimum density figures to each income category as reflected in Table 1 below. Note that the first three income groups – extremely low, very low and low – are often expressed collectively as “lower income.” Table 1: Breakdown of Different Income Levels based on Area Median Income and Density Income Category AMI1 Family of Four2 Density3 Extremely Low Income4 <30% AMI <$41,350 30 du/ac Very Low income 30-50% AMI $68,900 30 du/ac Low income 50-80% AMI $110,250 30 du/ac Moderate income 80-120% AMI $140,150 11.5 du/ac Above moderate income >120% AMI >$140,150 <11.5 du/ac 1The 2023 San Diego County Area Median Income (AMI) is $116,800 for a family of four. 2Assumes income at higher end of the AMI scale 3X du/ac = dwelling units per one acre of land 4”Extremely low income” is not a specified income group in the RHNA and is often included in the very low income category. The state also requires that cities develop and implement programs that will help facilitate affordable housing costs, but the programs cannot be too onerous or restrictive to make the housing development financially infeasible to construct. For example, cities can impose inclusionary housing requirements on new development, but HCD generally limits the requirement to be between 15% and 20% of the total units in the project. This becomes problematic for jurisdictions. While the Housing Element cycle requires local governments to ensure that land is adequality zoned to accommodate affordable units, the city’s obligations do not end there. HCD also requires that the units constructed on these properties are affordable at the assumed income category. This disconnect in planning versus construction results in a requirement to carefully track and monitor affordable housing. If the new housing units are not affordable at the targeted income category, the city is required under State law to find other site(s) to rezone to make up the shortfall. Consider the following hypothetical example: A city identifies a 10-acre site and applies a 30 du/ac zoning designation. In their Housing Element, 300 units are credited towards their low-income RHNA allocation. Later, a developer applies for 290 units. Because the city has a 15% inclusionary requirement, 44 of the 290 units must be restricted as affordable for Dec. 14, 2023 Item #3 Page 4 of 28 low-income. The project is constructed, and the 246 unrestricted units sell at above-market prices. So, in this example, because the city assumed 300 units would be built on this site (only 290 were constructed) and that all would be low-income units (only 44 were restricted), then the city is obligated to rezone other site(s) to make up the 256 low-income unit shortfall. Current Minimum Affordability Requirements and Direction City-owned parcels Due to the disconnect between affordable housing planned and housing constructed, Program 1.1 and Program 2.4 require the city to seek a higher level of affordable housing (at least 20% affordable to lower income households) on any city-owned parcel considered for rezoning or identified to assist the city in meeting its RHNA requirements. Additional affordability requirements applicable to the three city owned properties include the Surplus Land Act, which outlines statutes governments must follow when disposing of excess land. City staff are recommending specific and greater minimum affordability requirements for the three city- owned sites to be exempt from the Surplus Land Act. Program 2.4 (e), which specifically applies to city-owned properties, requires that the city, “leverage this ownership to negotiate a higher percentage of lower-income units than would be required under current city code.” North County Transit District (Coaster station) parcels NCTD’s two Coaster stations in Carlsbad, at the Carlsbad Village and Poinsettia stations, are both identified sites for housing. The district is currently pursuing their redevelopment, which is in the feasibility and design phase. Program 1.1 directs the city to work collaboratively with the North County Transit District on redevelopment of the Carlsbad Village Station. The program also directs the city to, “as part of [the Village Coaster Station’s] redevelopment, seek a high level of affordable housing.” While no Housing Element program addresses the Poinsettia Transit Station specifically, a goal of NCTD’s redevelopment at both stations is to “contribute to regional housing needs through facilitating the construction of market rate and affordable housing.” Currently, these parcels would be subject to the minimum affordability requirements of 15% affordable for lower income households. All other parcels Current city programs already establish minimum affordability requirements, including the city’s inclusionary housing ordinance, adopted in 1993. The code requires that a minimum of 15% of the units within a project be affordable to lower-income families and over the past 25 years, the program has resulted in about 2,500 affordable units citywide. In 2015, concurrent with the city’s General Plan Update, the Planning Commission adopted Resolution No. 7114 (Exhibit 7) that included greater affordability requirements for properties that were upzoned as part of the General Plan. Dec. 14, 2023 Item #3 Page 5 of 28 Minimum Affordability Recommendations To expand upon these existing programs, Exhibit 1 recommends: • All non-city-owned sites and the two Coaster Station sites: A minimum affordable housing requirement considered in the implementation of Program 1.1 by requiring compliance with one of the following: o 20% of the total residential units restricted for low-income households o At least 15% of the total residential units are restricted for low-income households and an additional 10% are restricted for moderate-income households o At least 15% of the total residential units are restricted for very-low income households • City-owned sites: A minimum affordable housing requirement of at least 40% of the total residential units restricted for lower-income housing, affordable to households To support the recommendations to increase the minimum affordability requirements for both city-owned and non-city owned sites are several key findings, listed below. • As noted, there is a disconnect between affordable housing planned and affordable housing constructed, and the city must maintain adequate sites based on income category throughout the entire housing cycle. • Across all income categories, the state places the greatest emphasis on providing housing for lower-income households. In the current 2021-2029 housing cycle, 54% (2,095 units) of the city’s individual RHNA target is in the lower-income category; these units are often the most difficult to achieve and are usually built only because of government mandates (such as the city’s inclusionary housing ordinance) and/or financial subsidies (such as through the city’s Housing Trust Fund). • In the prior housing cycle (2013-2021), the lower income housing need was 1,605 units. Through 2020, 378 lower income units (24% of the identified need) were built. • A 20% affordability requirement is consistent with that applied to sites as part of the 2015 General Plan Update. • For city-owned sites, the city’s ownership provides leverage to require greater affordability. • Requiring a minimum affordability requirement of 40% on city-owned parcels may comply with Surplus Land Act provisions and enable the city to dispose of sites 2, 6, and 15 to enable their residential development. • Application of 20% and 40% minimum affordability requirements across a sampling of the 18 sites makes a difference in the production of lower-income housing, as compared to a 15% (the inclusionary housing ordinance minimum) or 20% (applicable to city- owned sites) affordability minimum. Table 2 below demonstrates this: Dec. 14, 2023 Item #3 Page 6 of 28 Table 2: Application of different minimum affordability requirements1 Site number2 Number of units3 Lower-income units required 15% 20% 40% Site 2 993 n/a4 199 397 Site 6 180 n/a4 36 72 Site 15 24 n/a4 5 10 Total, these sites 1,197 - 240 479 Site 8 150 23 30 n/a5 Site 11 199 30 40 n/a5 Site 19 76 11 15 n/a5 Total, these sites 425 64 85 - 1 Affordability requirements are those defined in California Health & Safety Code. 2Sites 2,6 and 15 are city-owned. Sites 8, 11 and 19 are privately-owned. 3”Number of units” is a city estimate of homes that could be built on the identified sites. 4Because sites 2, 6, and 15, are city-owned, they are subject to a minimum 20% affordability requirement per programs of the Housing Element. However, a 40% requirement is recommended. 5As privately-owned, these sites are not recommended at an affordability requirement above 20%. Exhibits 8 (Map 1) and 9 (Map 2) provide a full analysis of all 18 sites and the unit differences that would result from different minimum affordability requirements. Further details and justification on the minimum affordability requirements are provided in the recommended Housing Commission resolution (Exhibit 1). Options Exhibits 8 and 9 also identify an additional minimum affordability requirement of 25% that could be applied to all sites. This presents the Housing Commission with the option of requiring greater or lesser affordability minimums to non-city-owned sites and city-owned sites, respectively. 1. Do not apply a 25% minimum affordability requirement and instead proceed with the recommended 20% and 40% requirements. Pros • Would be consistent with the affordability requirements applied to sites as part of the 2015 General Plan Update (Planning Commission Resolution 7114 (Exhibit 7)) • Would be consistent with Oct. 11, 2022 City Council direction to apply the “increased inclusionary housing requirements” of the 2015 General Plan Update • On city-owned sites, would take fuller advantage of the leverage resulting from the city’s ownership Cons • None Dec. 14, 2023 Item #3 Page 7 of 28 2. Apply a 25% minimum affordability requirement instead of the recommended 20% (non-city-owned sites) and 40% (city-owned sites). Pros • May result in more affordable housing on sites other than those owned by the city • May better assist the city in meeting its affordable housing goals and maintaining its housing capacity for the lower income category throughout the housing cycle Cons • May constrain housing production; typically, inclusionary or affordability requirements are in the range of 15-20% • May result in less affordable housing if developers comply by producing fewer, but more affordable units (units that are affordable to very low income versus low income households require greater subsidies and/or financial assistance) • Would result in significantly fewer affordable units than the recommended 40% requirement on city-owned sites • Would fail to take greater advantage of the city’s ownership leverage Next Steps Both the rezone program and minimum affordability requirement will be presented to City Council on Jan. 30, 2024 as a public hearing item. Housing Commission and Planning Commission recommendations will be incorporated into the City Council staff report along with a summary of public comments expressed at the commission meetings. Written correspondence received will also be provided as attachments. Eight of the 18 sites are in the Coastal Zone, which encompasses about a third of the city and all the city’s coastline. Changes the City Council approves to property land use as well as standards that affect properties in the Coastal Zone must also receive California Coastal Commission approval before they are effective in the Coastal Zone. Staff will submit an amendment application to the Coastal Commission in 2024 and action expected by the Commission is anticipated to occur at a public hearing in 2025. Changes affecting properties outside of the Coastal Zone will be effective following their approval by the City Council. Annually, the city prepares a Housing Element Annual Progress Report, which tracks the progress made on Housing Element programs in the prior year. The report for 2022 was presented to the Housing Commission as an information item on May 11, 2023. Reports prepared in subsequent years will reflect the city’s implementation of Program 1.1 and others, as appropriate. Environmental Evaluation Receiving an informational report and providing recommendations on affordable housing for future projects, pursuant to Public Resources Code Section 21065, does not constitute a “project” within the meaning of the California Environmental Quality Act (CEQA) in that it has no potential to cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, and therefore does not require environmental review. Dec. 14, 2023 Item #3 Page 8 of 28 For the Housing Commission’s information, a Supplemental Environmental Impact Report (SEIR) has been prepared to analyze the potential environmental impacts of the rezoning of properties and amendment to land use standards. The Planning Commission’s action on Oct. 18, 2023 recommended certification of the SEIR to the City Council. The City Council will make the final determination about the adequacy of the environmental document when it considers the project in early 2024. Exhibits 1. Housing Commission Resolution 2. Adopted Housing Element (part of City Council Resolution 2021-073) 3. Oct. 18, 2023 Planning Commission staff report 4. Penalties and Consequences of Housing Element Noncompliance 5. Map of all 18 housing sites 6. Fact sheets on the three city-owned housing sites (sites 2, 6, and 15) 7. Planning Commission Resolution 7114 8. Comparison of minimum affordability requirements (Map 1) 9. Comparison of minimum affordability requirements (Map 2) Dec. 14, 2023 Item #3 Page 9 of 28 Exhibit 2 Adopted Housing Element (part of City Council Resolution 2021-073) (on file in the Office of the City Clerk) Dec. 14, 2023 Item #3 Page 15 of 28 Exhibit 3 Oct. 18, 2023 Planning Commission staff report (on file in the Office of the City Clerk) Dec. 14, 2023 Item #3 Page 16 of 28 PENALTIES AND CONSEQUENCES OF NONCOMPLIANCE Exhibit 4 HOUSING ELEMENT NONCOMPLIANCE CONSEQUENCES HCD is authorized to review any action or failure to act by a local government that it determines is inconsistent with an adopted Housing Element or sections 65580 to 65589.8 of the Government Code (“Housing Element Law”). This includes failure to implement program actions included in the Housing Element. HCD may revoke Housing Element compliance if the local government’s actions do not comply with state law. Examples of penalties and consequences of Housing Element noncompliance: •General Plan Inadequacy: The Housing Element is a mandatory element of the General Plan. When a jurisdiction’s Housing Element is found to be out of compliance, its General Plan could be found inadequate, and therefore invalid. Local governments with an invalid General Plan can no longer make permitting decisions. •Loss of Permitting Authority: Courts have authority to take local government residential and nonresidential permit authority to bring the jurisdiction’s General Plan and Housing Element into substantial compliance with State law. The court may suspend the locality’s authority to issue building permits or grant zoning changes, variances, or subdivision map approvals – giving local governments a strong incentive to bring its Housing Element into compliance. •Court Receivership: Courts may appoint an agent with all powers necessary to remedy identified Housing Element deficiencies and bring the jurisdiction’s Housing Element into substantial compliance with Housing Element law. •Streamlined Ministerial Approval Process: Proposed developments within the jurisdiction of a local government that have not yet made sufficient progress towards their allocation of the regional housing need are now subject to less rigorous “ministerial” approvals in order to hasten the production of housing and bring a jurisdiction into compliance with its state-determined housing need allocation. •Legal Suits and Attorney Fees: Local governments with noncompliant Housing Elements are vulnerable to litigation from housing rights’ organization, developers, and HCD. If a jurisdiction faces a court action stemming from its lack of compliance and either loses or settles the case, it often must pay substantial attorney fees to the plaintiff’s attorneys in addition to the fees paid by its own attorneys. Potential consequences of lawsuits include: mandatory compliance within 120 days, suspension of local control on building matters, and court approval of housing developments. •Financial Penalties: Local governments are subject to court-issued judgements directing jurisdictions to bring a Housing Element into substantial compliance with state Housing Element law. If a jurisdiction’s Housing Element continues to be found out of compliance, courts can fine jurisdictions. Dec. 14, 2023 Item #3 Page 17 of 28 !"^$ JEF F ERSON ST CARLSBAD VILLA G E DR PALM ER WYCANNONRD LAS FLORES DR C A R L S B A D B L MARRON RD LAGUNA DR LA C O S TA AV ELCAMINOREAL RANCHOSANTAFERD C H E ST N U T AV TA M ARA C K A V ST A T E S T ALGA RD MELROSE D R M O N R O EST ALICAN TERD VA LLEYST ELFUERTEST FARADAYAV CAR C O U N T R YDR CAMINODE L OSCOCHES C A L L E BARCELONA OLIVENHAIN RD LEGOLA N D D R COLLEG E B L CAMINO J UNIPE R O SALK AV PARK DR K EL LYDR COLLE G E BL PA L O M A R AIRPORTRD P OIN S E T TIA L N PA S EODEL N O R T E A R M A DADR POINSETTIALN CAMINODELAS ONDAS CAMINO V IDAROBLE BLACKRAILRD G A B B I A N O L N AVIARAPY DOVELN B A TIQ UITOSDR AMBROSIALN ANAT RA CT CASSIA RD HIDDEN V ALLEYRD WINDROSE CR KESTREL D R AV E NID A E N CIN A S COS MOSCT C AR LS B AD B L YAR ROW DRLA S PALMASDR SE NW NE SW Site 3 Site 15 Site 1 Site 9 Site 10Site 5 Site 14 Site 8 Site 6 Site 11 Site 7 Site 4 Site 12 Site 2 Site 16 Site 17 Site 19 J:\ R e q u e s t s M a r c h 2 0 1 5 \ C o m E c o n D e v \ P l a n n i n g \ R I T M 0 0 2 3 5 7 5 _ 2 1 \ P a p e r m a p s f o r P u b l i c O u t r e a c h \ M a p o f a l l p o t e n i t a l h o u s i n g s i t e s ( H E A C ) . m x d Potential housing sites I Potential Housing Sites* Convert government-owned property to allow housing Convert commercial property to allow housing Increase units allowed on properties that already allowhousing Convert vacant industrial property to allow housing * Site 13 was designated as a low priority site by theCity Council and is therefore not shown on this map Site 18 (Sites 3, 8 and 15 are not included on Map 2) Exhibit 5 Dec. 14, 2023 Item #3 Page 18 of 28 POTENTIAL HOUSING SITES Site Number: 2 – The Shoppes at Carlsbad parking lot City of Carlsbad: Housing Element Update - OUR HOME OUR FUTURE SITE DESCRIPTION The site is an underutilized, multi-parcel property off Marron Road (a four-lane employment/transit connector street) west of El Camino Real. The parcels are numbered on the map to the right. The site encompasses the parking lots for The Shoppes at Carlsbad mall and a North County Transit District transit station. It does not include mall buildings. One parcel (5) is at the southwest corner of El Camino Real and Marron Road, opposite the rest of the parcels. The parcels range in size from approximately 0.75 to nearly 30 acres and total 57 acres. The City of Carlsbad is the site owner. SITE FEATURES SITE OPPORTUNITY The very northwest corner of the site, part of parcel 1 on the map, is constrained by Buena Vista Creek and its associated riparian habitat and floodplain area. Other than this small section, the property overall has no known physical constraints to development due to environmentally sensitive areas. The existing transit station at the site’s west end is expected to remain. The northernmost portion of the mall parking lot, beyond parcel 1 and along Buena Vista Creek, is in the City of Oceanside. As it is outside Carlsbad, this portion of the parking lot is not part of the site acreage reported here. After serving the mall’s parking needs, the parking lot could accommodate other uses, including homes. While residential uses are currently permitted by the Westfield Carlsbad Specific Plan (the approved planning document that regulates development at The Shoppes and surrounding parking lot), the site has no formal residential land use designation. Brookfield Properties, owner of The Shoppes at Carlsbad, supports redevelopment of the parking lot with homes and other uses. Please see the attached letter. Under consideration are changes to the land use designations applied to the entire mall and parking lot. The current land use designation of R, Regional Commercial, would be changed to a “split designation” of R/R-40/R-23; R-40 is a proposed residential designation that would permit densities from 37.5 to 40 dwelling units per acre (du/ac). R-23 is an existing residential designation that permits densities from 15 to 23 du/ac. Housing Element Program 1.1 proposes to increase the minimum of the R-23 density range from 15 to 19 du/ac. While the current R designation permits a limited number of homes above the first floor of a commercial development, the proposed “split” designation would continue to recognize The Shoppes as a regional commercial center and at the same time would permit a greater number of residential units without the constraint of having to locate the units above a commercial first floor. In addition, the R-40 designation would result in housing densities considered by the state to be affordable to lower income households. The R-23 designation would result in densities considered affordable to moderate income households. Likewise, units anticipated under the R designation would be at a density of 15 du/ac are also considered affordable to moderate income families. The split designation would further include the OS, Open Space, designation as appropriate to recognize the creek. Mall parking lot Utilities accessible City owned Buena Vista Creek Minimal site constraints Includes transit hub; close to services 1 2 3 4 5 C-7 Exhibit 6 Dec. 14, 2023 Item #3 Page 19 of 28 POTENTIAL HOUSING SITES Site Number: 2 – The Shoppes at Carlsbad parking lot City of Carlsbad: Housing Element Update - OUR HOME OUR FUTURE Characteristic of the densities that would be permitted by the R-40 designation are four and five story apartment buildings. For the R-23, two- and three-story apartments and condominiums would be typical. Based on the minimum densities of each designation (R, 15 du/ac; R-23, 19 du/ac; R-40, 37.5 du/ac), the table below lists potential unit yields for each parking lot parcel. Parcel acreages are divided equally between the commercial and residential designations; for parcel 2, for example, this means approximately 15 acres are assigned to the R designation and 15 acres are assigned to the R-40/R-23 designations. Further, for parcels 1 and 2 only, 9 acres of the residential portion is proposed for the R-40 designation with the balance devoted to the R-23 designation. Map No. Assessor’s Parcel No. Acreage Status Current designation Proposed designation Existing/potential unit yield* 1 156-301-11 22.6* Parking lot, small part of creek R/OS R/R-40/R-23/OS R: 42 units (existing) R-23: 43 units (proposed) R-40: 337 units (proposed) 422 total units 2 156-302-35 29.81 Parking lot R R/R-40/R-23 R: 55 units (existing) R-23: 112 units (proposed) R-40: 337 units (proposed) 504 total units 3 156-301-06 1.45 Parking lot R R/R-40 R-40: 27 units (potential) 4 156-301-10 1.43 Parking lot R R/R-40 R-40: 26 units (potential) 5 156-302-23 0.77 Parking lot R R/R-40 R-40: 14 units (potential) Total 993 units *Parcel 1 acreage reduced by one acre to reflect portion of property designated Open Space. The city’s adopted 2017 Real Estate Strategic Plan notes the city’s general preference is to retain ownership of its properties and lease them long-term, rather than sell a particular property. Regarding The Shoppes parking lot parcels, the plan recommends “that the city should initiate exploration of options for entering into a long-term lease agreement for the parking lot properties with Rouse Properties.” At the time, Rouse Properties was the mall owner and operator. Presently, the mall owner is Brookfield Homes. The plan makes no recommendation on the property’s future use and it does not include mixed use, including residential, redevelopment Changing the properties’ designations to R/R-40 would require amendments to the General Plan, Zoning Ordinance, and Westfield Carlsbad Specific Plan and City Council approval. The table on the following page provides summary information about the parking lot parcels, including details about the affordability (income category) of the units that could be developed based on current and planned densities. C-8Dec. 14, 2023 Item #3 Page 20 of 28 POTENTIAL HOUSING SITES Site Number: 2 – The Shoppes at Carlsbad parking lot City of Carlsbad: Housing Element Update - OUR HOME OUR FUTURE Parcels Numbers 156-301-06, 156-301-10, 156- 301-11, 156-302-17, 156-302- 23, 156-302-24 GMP Quadrant Northwest Ownership Public (City of Carlsbad or City of Carlsbad Parking Authority) Parcel Size 57 acres (all parcels) Current General Plan Designation R (Regional Commercial) and R/OS (Regional Commercial and Open Space) Proposed General Plan Designation R/R-40/R-23 (Regional Commercial/Residential 37.5 to 40 du/ac/Residential 19 to 23 du/ac); R/R-40/R-23/OS (“OS” indicating Open Space); or R/R-40 Current Residential Opportunity Approximately 210 units Proposed Residential Opportunity Approximately 993 units Income category of units (based on minimum density)Lower: 741 units Moderate: 252 units C-9Dec. 14, 2023 Item #3 Page 21 of 28 POTENTIAL HOUSING SITES Site Number: 6 – Crossings Golf Course Lot 5 City of Carlsbad: Housing Element Update - OUR HOME OUR FUTURE SITE DESCRIPTION The site is a vacant, city-owned property located off College Boulevard (a four-lane arterial road) midway between Faraday Avenue and Palomar Airport Road. It overlooks the golf course and is on the west side of the street. The site was graded as part of the Crossings at Carlsbad Golf Course development in the early 2000s. While the overall site is 11.4 acres, much of the lot is steep hillside that drops to the golf course and open space. The developable part of the lot is only 6.8 acres. SITE FEATURES SITE OPPORTUNITY There are no known physical constraints to development due to environmentally sensitive areas and the parcel is located outside the McClellan-Palomar Airport flight path. It is not significantly impacted by airport noise. Because the parcel is city owned, development with a higher percentage of affordable housing may be possible. Under consideration is a change of the property’s land use designation from PI/O, Planned Industrial/Office, to R-30, a high-density residential designation typical of two to three story apartment projects. if the R-30 designation were applied to the property, it would have a minimum density of 26.5 dwelling units per acre and a maximum density of 30 dwelling units per acre (du/ac). At the minimum density, approximately 180 units could be developed on the graded, flat developable portion of the site. To change the property’s designation to R-30, amendments to the General Plan, Local Coastal Program, and zoning designations would be necessary; these amendments would require City Council and California Coastal Commission approval. In addition, and consistent with Lot 5’s existing land use designation, the city’s adopted Real Estate Strategic Plan calls would need modification to allow residential on the property as it calls for the property’s long-term lease for hotel or office purposes. (Note: The vacant and already graded parcel directly across College Boulevard from this site is also city-owned but is not suitable for housing due to airport restrictions.) The table below summarizes site information. Parcel Number 212-270-05 GMP Quadrant Northwest Ownership Public (City of Carlsbad) Parcel Size 11.4 acres (6.8 acres devlopable) Current General Plan Designation PI/O (Planned Industrial/Office) Proposed General Plan Designation R-30 (Residential, 26.5-30 du/ac) Current Residential Opportunity 0 units Proposed Residential Opportunity Approximately 180 units (@ 26.5 du/ac) Income category of units (based on minimum density) Lower Vacant Utilities accessible Graded Minimal site constraints City owned Close to jobs C-18Dec. 14, 2023 Item #3 Page 22 of 28 POTENTIAL HOUSING SITES Site Number: 15 – City’s Oak Yard City of Carlsbad: Housing Element Update - OUR HOME OUR FUTURE SITE DESCRIPTION This 1.3-acre city-owned site presently serves as a public works maintenance and operations yard. It is located where the west end of Oak Avenue terminates near the railroad corridor. Across Oak Avenue from the yard is the south end of State Street. Approximately three blocks north is the Carlsbad Village Train Station. SITE FEATURES SITE OPPORTUNITY The city is currently planning a new maintenance and operation center that would include enough maintenance yard space to serve city needs. The plan would locate the new facility at the city’s large Safety Center campus on Orion Way. It is anticipated that all personnel and equipment currently stationed at the Oak Yard site would be relocated to the new maintenance and operations center. Project design and discretionary permitting are underway, and the estimated construction completion date of the new center is the end of 2023. At that time, the Oak Yard property would no longer be needed for its current purpose. The city’s adopted 2017 Real Estate Strategic Plan provides guidance on the disposition of the Oak Yard when it is no longer needed for its current use due to the completion of the new maintenance and operations center. The plan recommends the city release a competitive Request for Proposals (RFP) and enter a long-term land lease of the property. The plan does not make a recommendation on the property’s future use. With the Oak Yard no longer necessary, the site could redevelop residentially. Located in the Pine-Tyler District of the Village and Barrio Master Plan, the 1.3-acre property, consisting of adjacent 0.84- and 0.5-acre parcels, has a residential density range of 18 to 23 dwelling units per acre (du/ac). The PT District does not have a mixed-use requirement as parts of other master plan districts do. Therefore, an all-residential project could be built. At the minimum and maximum densities permitted, the property could yield approximately 24 to 30 units. As a public works yard, there may be the presence of above and below ground contaminants, such as from oil, fuel and lubricants. Completion of the Orion Center by the end of 2023 will ensure adequate time for site clean-up and development of housing within the planning period. A proposal to develop the site would require City Council approval. The table below summarizes the information about the site, including the affordability (income category) of units based on minimum densities proposed. Parcels Numbers 204-010-05, 204-010-06 GMP Quadrant Northwest Ownership Public (City of Carlsbad) Parcel Size 1.3 acres, both parcels Current General Plan Designation V-B (Village Barrio)Proposed General Plan Designation No change Current Residential Opportunity 24 units (at 18 du/ac, the density range minimum) Proposed Residential Opportunity No change Income category of units (based on minimum density) Moderate City-owned Public works yard Close to services Near transit Minimal site constraints C-37Dec. 14, 2023 Item #3 Page 23 of 28 Exhibit 7 Planning Commission Resolution 7114 (on file in the Office of the City Clerk) Dec. 14, 2023 Item #3 Page 24 of 28 Exhibit 8 Map 1 - Comparison of Minimum Affordability Requirements (All Sites) Site Site Name Total Units1 Affordable Units @ 15% @ 20% @ 25% @ 40% 1 North County Plaza2 240 36 48 60 - 2 The Shoppes at Carlsbad parking lot2 993 - 199 248 397 3 Chestnut at El Camino Real parcel 28 4 6 7 - 4 Zone 15 cluster2 212 32 42 53 - 5 Avenida Encinas car storage lot 53 8 11 13 - 6 Crossings Golf Course Lot 5 181 - 36 45 72 7 Salk Ave. parcel 259 39 52 65 - 8 Cottage Row Apts. 150 23 30 38 - 9 West Oaks industrial site3 0 - - - - 10 Bressi Ranch Colt Pl. industrial parcel 49 7 10 12 - 11 Bressi Ranch Gateway Rd. industrial parcels 199 30 40 50 - 12 Industrial sites east of Melrose Dr. 456 68 91 114 14 NCTD Carlsbad Village Coaster Station4 93 14 19 23 - 15 City’s Oak Yard4 24 - 5 6 10 16 Caltrans Maintenance Station & Pacific Sales 183 27 37 46 - 17 NCTD Poinsettia Coaster Station 27 4 5 7 - 18 North Ponto Parcels5 50 8 10 13 - 19 La Costa Glen/Forum2 76 11 15 19 - Total (with city-owned sites) 3,273 311 655 818 479 Total (without city-owned sites) 2,075 311 415 519 - Notes: 1.Total units include those already permitted by the existing General Plan plus what would be achieved under the proposed rezoning program.2.Sites 1, 2, 4, and 19: Portions of these sites are currently designated Open Space. The rezoning proposed for these sites does not affect this designation. 3.Site 9: Since its original identification in the Housing Element, the city has approved “West Oaks,” a 192-unit apartment project. Because it is approved, Site 9 does not require rezoning and does not contribute units under either map.4.Sites 14 and 15 do not require rezoning.5.Site 18: Since originally identified as a potential housing site, the city has approved on a portion of Site 9 “FPC Residential,” an 86-unit apartment project. Proposed rezoning of Site 18 has been modified to apply only to the portion of the site south of Ponto Drive, which consists of five small parcels totaling a little more than an acre, although the 50 units cited above remain as the full quantity above the current allowances of the General Plan. Dec. 14, 2023 Item #3 Page 25 of 28 Map 1 - Comparison of Minimum Affordability Requirements (City-owned Sites) Site1 Site Name Total Units2 Affordable Units @ 15% @ 20% @ 25% @ 40% 23 The Shoppes at Carlsbad parking lot 993 - 199 248 397 6 Crossings Golf Course Lot 5 181 - 36 45 72 154 City’s Oak Yard 24 - 5 6 10 Total 1,198 - 240 300 479 Notes: 1.Because sites 2, 6, and 15, are city-owned, they are subject to a minimum 20% affordability requirement per programs of the Housing Element. However, a 40% requirement is recommended. 2.Total units include those already permitted by the existing General Plan plus what would be achieved under the proposed rezoning program. 3.Site 2: A portion of this site is currently designated Open Space. The rezoning proposed does not affect this designation. 4.Site 15 does not require rezoning. Dec. 14, 2023 Item #3 Page 26 of 28 Exhibit 9 Map 2 - Comparison of Minimum Affordability Requirements (All Sites except 3, 8 and 15 and with units increases at sites 14 and 17) Site Site Name Total Units1 Affordable Units @ 15% @ 20% @ 25% @ 40% 1 North County Plaza2 240 36 48 60 - 2 The Shoppes at Carlsbad parking lot2 993 - 199 248 397 3 Chestnut at El Camino Real parcel n/a n/a n/a n/a n/a 4 Zone 15 cluster2 212 32 42 53 - 5 Avenida Encinas car storage lot 53 8 11 13 - 6 Crossings Golf Course Lot 5 181 - 36 45 72 7 Salk Ave. parcel 259 39 52 65 - 8 Cottage Row Apts. n/a n/a n/a n/a n/a 9 West Oaks industrial site3 0 - - - - 10 Bressi Ranch Colt Pl. industrial parcel 49 7 10 12 - 11 Bressi Ranch Gateway Rd. industrial parcels 199 30 40 50 - 12 Industrial sites east of Melrose Dr. 456 68 91 114 14 NCTD Carlsbad Village Coaster Station4 200 30 40 50 - 15 City’s Oak Yard4 n/a n/a n/a n/a n/a 16 Caltrans Maintenance Station & Pacific Sales 183 27 37 46 - 17 NCTD Poinsettia Coaster Station 100 15 20 25 - 18 North Ponto Parcels5 50 8 10 13 - 19 La Costa Glen/Forum2 76 11 15 19 - Total (with city-owned sites) 3,251 312 650 813 470 Total (without city-owned sites) 2,077 312 415 519 - Notes: 1.Total units include those already permitted by the existing General Plan plus what would be achieved under the proposed rezoning program. 2.Sites 1, 2, 4, and 19: Portions of these sites are currently designated Open Space. The rezoning proposed for these sites does not affect this designation. 3.Site 9: Since its original identification in the Housing Element, the city has approved “West Oaks,” a 192-unit apartment project. Because it is approved, Site 9 does not require rezoning and does not contribute units under either map. 4.Sites 14 and 15 do not require rezoning.5.Site 18: Since originally identified as a potential housing site, the city has approved on a portion of Site 9 “FPC Residential,” an 86-unit apartment project. Proposed rezoning of Site 18 has been modified to apply only to the portion of the site south of Ponto Drive, which consists of five small parcels totaling a little more than an acre, although the 50 units cited above remain as the full quantity above the current allowances of the General Plan. Dec. 14, 2023 Item #3 Page 27 of 28 Map 1 - Comparison of Minimum Affordability Requirements (City-owned Sites) Site1 Site Name Total Units2 Affordable Units @ 15% @ 20% @ 25% @ 40% 23 The Shoppes at Carlsbad parking lot 993 - 199 248 397 6 Crossings Golf Course Lot 5 181 - 36 45 72 154 City’s Oak Yard n/a n/a n/a- n/a n/a Total 1,174 - 235 294 470 Notes: 1.Because sites 2, 6, and 15, are city-owned, they are subject to a minimum 20% affordability requirement per programs of the Housing Element. However, a 40% requirement is recommended. 2.Total units include those already permitted by the existing General Plan plus what would be achieved under the proposed rezoning program. 3.Site 2: A portion of this site is currently designated Open Space. The rezoning proposed does not affect this designation. 4.Site 15 does not require rezoning. Dec. 14, 2023 Item #3 Page 28 of 28 From: Craig Nelson <bankoncraig@gmail.com> Sent: Wednesday, December 13, 2023 8:26 AM To: Scott Donnell <Scott.Donnell@carlsbadca.gov> Subject: Fwd: Housing Commission to consider affordability requirements for future development Scott, As a property owner and taxpayer in CBAD I would like to voice my strong opposition to building welfare housing. Forcing builders to provide low income housing simply means they must charge even higher prices on market units, driving up all prices. Government intervention just screws up the food chain and causes more problems than it solves. CBAD's low income plan should be to build in Yuma where it's cheap. Just because Sacramento is run by buffoons doesn't mean CBAD should be. Craig Craig A. Nelson Nelson Financial Consulting Group (858)610-7130 “The great virtue of a free market system is that it does not care what color people are; it does not care what their religion is; it only cares whether they can produce something you want to buy. It is the most effective system we have discovered to enable people who hate one another to deal with one another and help one another.” Milton Friedman - Housing Commission meets 12/14 From: Lori Robbins <silentmeowing@gmail.com> Sent: Wednesday, December 13, 2023 3:11 PM To: Planning <Planning@CarlsbadCA.gov> Subject: Re: Comment for December 14th housing meeting Wednesday December 13th 2023 To: Housing Commission I am a Carlsbad citizen and would like the housing plan update to include all of the current city sites. I think it is detrimental to only increase density in certain areas and not spread the housing throughout town. 1. Land near the coast tends to be more expensive creating a higher expense for developers to justify building affordable housing. 1. Building in all areas of Carlsbad gives developers more opportunities making it easier for the town to be successful with their housing goals. 2. Multiple sites can be developed at the same time and multiple builders can benefit from new construction. 3. Spreading the housing would provide more diverse architectural projects and would ease traffic congestion and the use of utilities and infrastructure. 4. There is potentially more space for parks and playgrounds to be included in housing projects if all the town is considered. 5. The additional students can be absorbed by a multiple of elementary and middle schools instead of creating a burden for just one school. My one additional thought is that the density at the defunct Sears be increased. This site is unique in that residents can walk to stores, supermarkets, movies and restaurants without the use of a car. Additionally, a shuttle would be able to transport residents to the Village area and Beaches in under 15 minutes. Thank you for your consideration. Lori Robbins Carlsbad Resident CAUTION: Do not open attachments or click on links unless you recognize the sender and know the content is safe. From: Laura Vozza-Brown <lvbrown@abuildusa.com> Sent: Wednesday, December 13, 2023 3:52 PM To: Housing <Housing@CarlsbadCA.gov> Subject: Re: Housing Commission Meeting Dec 14 Comments Corrected Copy On Wed, Dec 13, 2023 at 3:38 PM Laura Vozza-Brown <lvbrown@abuildusa.com> wrote: I am unable to attend please attatch these to the comments Laura Brown CAUTION: Do not open attachments or click on links unless you recognize the sender and know the content is safe. The current Housing Element does not take into consideration the Density Bonus Laws that have been passed in the last 10 years. These laws allow developers to earn a density bonus depending on what percentage of homes are built for Very Low, Low, and Moderate Income families. The affordable home percentages that the city is applying to these sites between is 40 and 25 percent of the total homes. This results in a density bonus of between 37.5% and 50% more homes that can be built on the same site. In reality, the zoning assignments are boosted by that additional proportion. So instead of a 30 DU/AC site, the “real” density is 41.25-45 DU/AC. Additionally, developers are allowed 1-4 building concessions. The proposed changes will result in each site gaining 3 concessions. Concessions that are available are reduced minimum parking, reduced setbacks, and removal of maximum height restrictions. These concessions remove constraints that would prohibit higher density building strategies. The rezoning density changes should be lowered to reflect the potential density a developer can build. The Supplemental Environmental Impact Report is insufficient in the potential number of homes that can be built. City and NCDT Owned Properties * Usable Land Concessions Examples Reduced Parking Requirements High Restrictions Lifted Reduced Front Side and Rear Set Backs Private Ownership Laura Brown 5117 El Arbol Dr Carlsbad CA 92008 From:Leah Sorensen To:Leah Sorensen Subject:FW: 12/14, Agenda Item #3 Date:Thursday, December 14, 2023 10:54:50 AM -----Original Message----- From: Teri Jacobs <tjacobs86@pacbell.net> Sent: Thursday, December 14, 2023 8:05 AM To: Christian Gutierrez <Christian.Gutierrez@carlsbadca.gov> Subject: 12/14, Agenda Item #3 Commission, Please go back to the drawing board and include all sites that were originally available. It is shocking that some residents are listened to and others aren’t. In this age of equity high density-low income housing needs to be equally spread throughout the city. Put Site 13 back in the mix. Better yet, go back to the state and just say NO! Traffic is already horrendous, where is the infrastructure to provide services, where are the jobs that supposedly workers will travel to via mass transit? The assumption that individuals living in density will not own cars is ridiculous. You cannot walk to enough services into the Village! Do the right thing for all of Carlsbad… Teri Jacobs Resident Dist 1 Sent from my iPad CAUTION: Do not open attachments or click on links unless you recognize the sender and know the content is safe. From:Leah Sorensen To:Leah Sorensen Subject:FW: Housing Commission Meeting - December 14, 2023 - Letter of Support for Staff Recommendation Date:Thursday, December 14, 2023 12:50:36 PM Attachments:image003.png Housing Commission Meeting - December 14, 2023 - Staff Support Letter.pdf From: Stan Weiler <sweiler@hwl-pe.com> Sent: Thursday, December 14, 2023 12:34 PM To: Christian Gutierrez <Christian.Gutierrez@carlsbadca.gov> Cc: Scott Donnell <Scott.Donnell@carlsbadca.gov> Subject: Housing Commission Meeting - December 14, 2023 - Letter of Support for Staff Recommendation Please see attached letter that we would request to be included with all other documentation provided to the Commissioners at this evening’s meeting. L. Stan Weiler, AICP - Principal HWL – Howes Weiler Landy – Planning, Engineering & Surveying 2888 Loker Avenue East, Suite 217 Carlsbad, CA 92010 P: 760.929.2288 Ext. 402 C: 760.801.4678 HWL-PE.COM Unless indicated otherwise, the information contained in this message is privileged and confidential, and is intended only for the use of the addressee(s) named above and others who have been specifically authorized to receive it. If you are not the intended recipient, you are hereby notified that any dissemination, distribution or copying of this message and/or attachments is strictly prohibited. The company accepts no liability for any damage caused by any virus transmitted by this email. Furthermore, the company does not warrant a proper and complete transmission of this information, nor does it accept liability for any delays. If you have received this message in error, please contact the sender and delete the message. Thank you. CAUTION: Do not open attachments or click on links unless you recognize the sender and know the content is safe. December 14, 2023 Scott Donnell Planning Division 1635 Faraday Avenue Carlsbad, CA 92008 SUBJECT: Housing Commission Meeting – December 14, 2023 – Owner of Site 10 Dear Scott, This letter is provided to opine on the staff report and city staff recommendation to the Housing Commission for December 14, 2023, related to agenda Item 3, Housing Element Implementation. We would like to also take the opportunity to express our client’s continued support of the rezoning efforts by the city required to implement the new Housing Element, specifically as it relates to Site 10. The property owner for Site 10 wishes to express his support for the staff recommendation for 20% affordable housing for his site. He understands from the staff report that cities can impose inclusionary housing requirements on new development, and the HCD generally limits the requirement to be between 15% and 20% of the total units in the project. Further, it is understood the recommendation of 20% for non-city-owned sites is based on precedent previously set by the 2015 General Plan update, and specifically Planning Commission Resolution 7114 (Exhibit 7), as well as consistency with the October 11, 2022 City Council direction to apply the “increased inclusionary housing requirements” of the 2015 General Plan Update. The owner of Site 10 believes development of the site would still be feasible with a 20% affordable housing requirement. However, in line with the findings in the staff report, applying a further increase to 25% affordable housing requirement may have unintended consequences such as constraining housing production or resulting in less affordable housing if sites are developed with fewer, though more affordable, units. The property owner for Site 10 continues to be very supportive of staff’s efforts to enhance the production of new housing opportunities, as well as establishing a reasonable level of affordable housing, specifically at the 20% level. Please provide this letter as a part of the information packet to be received by the Housing Commission for the December 14, 2023 meeting. Sincerely, Stan Weiler, AICP HWL – Planning and Engineering cc. Saahil Khandwala, Property Owner - Site 10 Housing Element Implementation – rezoning and minimum affordability Scott Donnell, Senior Planner Community Development Department December 14, 2023 PRESENTATION Provide the Housing Commission with an overview of the rezoning effort Request the Housing Commission recommend a minimum affordability requirement INTRODUCTION 2 BACKGROUND BACKGROUND 4 State housing law City mandates Consequences of non-compliance General Plan: city’s “blueprint” for land use Housing Element 2021-2029 housing cycle 40 programs, 160 objectives Program 1.1 – “adequate sites” BACKGROUND 5 HOUSING SITES REZONE HOUSING SITES REZONE Units needed, by income group Income group Lower Moderate Above Moderate Total Rezoning units needed 2,026 552 ---2,578 7 Rezoning deadline is April 2024 Density is a proxy for affordability Lower income = higher density RHNA – Regional Housing Needs Assessment 18 Housing Sites 8 COMMUNITY ENGAGEMENT 2020 Housing Element Advisory Committee 2021-2022 City Council Hearings for the Housing Element and Subsequent Direction Summer 2023 Public Review of Project Materials and Environmental Analysis Fall 2022 Initiation of Environmental Analysis, including Public Meetings Fall 2023/Winter 2024 Public Hearings 9 2020 Public Survey 2021 Public Survey 2025 Coastal Commission MINIMUM AFFORDABILITY REQUIREMENT Affordability: homes with rents or sales prices affordable to lower income households Family of four earning a low income: Maximum annual income: $110,250 Maximum rent: $1,752/mo Maximum housing cost (ownership): $2,044/mo DISCUSSION 11 Require a greater minimum percentage of affordable homes Current requirement: 15% Proposed requirement: Non-city owned sites: 20% City-owned sites: 40% DISCUSSION 12 Ensures greater production of lower income housing Follows past direction and requirements Takes fuller advantage of city ownership Recognizes density does not equal affordability Assists with state law compliance DISCUSSION 13 Adopt a resolution recommending a greater minimum affordability requirement to City Council: 20% affordability requirement for non-city owned sites 40% affordability requirement for city owned sites RECOMMENDATION 14 BACKUP SLIDES INCOME & DENSITY Income group AMI Family of Four Density Extremely Low <30% AMI <$41,350 30 du/ac Very Low 30-50% AMI $68,900 30 du/ac Low 50-80% AMI $110,250 30 du/ac Moderate 80-120% AMI $140,150 11.5 du/ac Above Moderate >120% AMI >$140,150 <11.5 du/ac Du/ac = dwelling units per acre 16 The 2023 area median income (AMI) for a family of four is $116,800. Themes of Public Comment COMMUNITY ENGAGEMENT Advocacy for/against certain rezone sites Concerns about community character, traffic, safety, loss of open space Comments on density assumptions Environmental coverage for future projects 17 OPTION – MAP 1 Existing, Approved, and Potential Affordable Housing Quadrant Northwest Northeast Southwest Southeast Total Existing affordable units1 524 360 681 645 2,209 Approved, unbuilt affordable units1 200 0 123 31 354 Potential units on vacant existing Housing Element sites for lower and moderate income units2, 3 53 226 0 8 257 Total units possible on the 18 potential housing sites (net increase) 1,871 (1,746) 784 (668) 718 (453) 248 (248) 3,621 (3,115) TOTAL potential affordable units 2,648 1,254 1,522 932 6,356 OPTION – MAP 2 Existing, Approved, and Potential Affordable Housing Quadrant Northwest Northeast Southwest Southeast Total Existing affordable units1 524 360 681 645 2,209 Approved, unbuilt affordable units1 200 0 123 31 354 Potential units on vacant existing Housing Element sites for lower and moderate income units2, 3 53 226 0 8 257 Total units possible on the 18 potential housing sites (net increase) 1,926 (1,833) 784 (668) 641 (409) 248 (248) 3,599 (3,158) TOTAL potential affordable units 2,648 1,254 1,522 932 6,356 18 HOUSING SITES (OPTION – MAP 1) Total Potential Affordable Units – Insides & Outside the Coastal Zone Site 1 2 3 4 5 6 7 8 9 10 11 12 14 15 16 17 18 19 TOTAL Inside Coastal Zone 240 53 181 150 192 93 183 27 90 76 1,285 Outside Coastal Zone 993 28 328 259 49 199 456 24 2,336 TOTAL 3,621 18 HOUSING SITES (OPTION – MAP 2) Total Potential Affordable Units – Insides & Outside the Coastal Zone Site 1 2 3 4 5 6 7 8 9 10 11 12 14 15 16 17 18 19 TOTAL Inside Coastal Zone 240 53 181 N/A 192 200 183 100 90 76 1,315 Outside Coastal Zone 993 N/A 328 259 49 199 456 N/A 2,284 TOTAL 3,599 BACKGROUND 22 HOUSING SITES REZONE Units needed, by income group Income group Lower Moderate Above Moderate Total Required RHNA 2,095 749 1,029 3,873 - Existing Capacity 698 422 1,029+2,149 Net RHNA 1,397 327 ---1,724 + 30% Buffer (of full RHNA) 629 225 ---854 Rezoning units needed 2,026 552 ---2,578 23 HOUSING SITES REZONE Units needed, by income group Income group Lower Moderate Above Moderate Total Required RHNA 2,095 749 1,029 3,873 + 30% Buffer 629 225 309 1,163 Subtotal 2,724 974 1,338 5,036 - Existing Capacity 698 422 1,338+2,149 Rezoning units needed 2,026 552 ---2,578 24 HOUSING SITES REZONE Units provided, by map Income group Lower Moderate Above Moderate Total Map 1 2,776 (+750) 339 (-213) ---3,115 (+537) Map 2 2,883 (+857) 275 (-277) ---3,158 (+580) Units needed, by income group Income group Lower Moderate Above Moderate Total Rezoning units needed 2,026 552 ---2,578 25 Existing, approved and Potential Affordable Housing BACKGROUND 27 CONSEQUENCES •Loss of funding •Loss of land use control •Financial penalties BACKGROUND 29