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PC RES 2008-021 P.C. RESOLUTION NO. 2008-21 RESOLUTION F THE PLANNINGCOMMISSION F THE CITY OF RANCHOAL VERDEVERDES RECOMMENDINGCITY COUNCIL APPROVAL OF CASE NO. Z 008-00149, A GENERAL PLAN AMENDMENT UPDATING THE HOUSING ELEMENT OF THE 1TY® GENERALPLAN. WHEREAS,the City of Rancho Palos Verdes initiated a General Plan Amendment in 2007 in order to update the Housing Element of the City's General Plan, as required by State lave; and, WHEREAS, on August 21, 2007, the City Council authorized the hiring of Castaneda and Associates, a housing consultant, to assist with the preparation of the City's updated Housing Element; and, WHEREAS, a Preliminary Draft Housing Element was prepared by Staff and the City's housing consultant, dated February 6, 2008 and February 20, 2008; and, WHEREAS, on February 12, 2008, the Planning Commission held a duly noticed public hearing/workshop to hear public testimony and discuss the content of the Preliminary Draft Housing Element (dated February 6, 2008). At such meeting the Planning Commission forwarded the Preliminary Draft Housing Element directly to the City Council with no comment; and, WHEREAS, on March 4, 2008, the City Council held a duly noticed public hearing/workshop to hear public testimony and discuss the content of the Preliminary Draft Housing Element (dated February 20, 2008). At such meeting, the City Council directed Staff to forward the Preliminary Draft Housing Element to the California Department of Housing and Community Development for review; and, WHEREAS, on March 6, 2008,the Preliminary Draft Housing Element(dated March 6, 2008) was transmitted to the California Department of Housing and Community Development; and, WHEREAS, the California Department of Housing and Community Development provided comments on the Preliminary Draft Housing Element in a letter to the City dated May 9, 2008; and, WHEREAS, a revised Draft Housing Element was prepared by City Staff and the housing consultant to address the comments by the California Department of Housing and Community Development for review and comment; and, WHEREAS, pursuant to the provisions of the California Environmental Quality Act, Public Resources Code Sections 21000 et. seq. ("CEQA"), the State CEQA Guidelines, California Code of Regulations, Title 14, Sections 15000 et. seq., the City's Local CEQA Guidelines, and Government Code Section 65952.5(e)(Hazardous Waste and Substances Statement), the City of Rancho Palos Verdes prepared an Initial Study and determined that, there is no substantial evidence that the approval of Case No. ZON2008-00149 for a General Plan Amendment would result in a significant adverse effect on the environment. Accordingly, a Draft Negative Declaration has been prepared and notice of that fact was given in the manner required by law; and, WHEREAS, the Initial Study was prepared on March 27, 2008 and distributed for circulation and review from March 28, 2008 through April 28, 2008; and, WHEREAS, copies of the draft Negative Declaration were distributed to the Planning Commission and prior to taking action on the proposed General Plan Amendment, the Planning Commission independently reviewed and considered the information and findings contained in the Negative Declaration and determined that the document was prepared in compliance with the requirements of CEQA and local guidelines, with respect thereto; and, WHEREAS, after issuing notice pursuant to the requirements of the City's Development Code and the State CEQA Guidelines, the Planning Commission of the City of Rancho Palos Verdes held a public hearing on May 27, 2008,at which time all interested parties were given an opportunity to be heard and present evidence. NOW, THEREFORE, THE PLANNING COMMISSION OF THE CITY OF RANCHO PALOS VERDES DOES HEREBY FIND, DETERMINE, AND RESOLVE AS FOLLOWS: Section 1: The Planning Commission finds that Case No. ZON2008-00149, a General Plan Amendment, is necessary to comply with State law and is consistent with the City's General Plan. Section 2: The Planning Commission finds that the Final Draft Housing Element (Attached Exhibit B), which includes all revisions (Attached Exhibit A)to the Draft Housing Element that was originally submitted to the California Department of Housing and Community Development on March 6, 2008, adequately responds to the concerns addressed by the California Department of Housing and Community Development Section 3® The Planning Commission of the City of Rancho Palos Verdes hereby recommends that the City Council adopt Case No. ZON2008-00149 for a General Plan Amendment, as outlined in the Final Draft Housing Element dated May 2008 (Attached Exhibit B), which includes revisions as noted in the attached "Edited Version of Proposed Revisions to the Draft Housing Element, dated May 2008" (Attached Exhibit A), in order to further encourage the provision of housing in a mannerwhich adequately serves the needs of all present and future community residents in compliance with State law. P.C. Resolution No. 2008-21 PASSED, APPROVED, AND ADOPTED this 27th day of May 2008, by the following vote: AYES: Gerstner, Knight, Lewis, Perestam, Ruttenberg, Tomblin NOES: None ABSTENTIONS: None ABSENT', Tetreault Stephen Per'estam Chairman Joel Ras, AIBP ing and U. Direct of lanning, " Code VtAlement; and, Secretary to the Planning Commission P.C. Resolution No. 2008-21 Exhibit A Edited Version Proposed Revisions to the Draft r Housing Element The revisions are shown in bold underlined f®r text that has been added, and in ° ; for text that has been removed. May 2008 (Note. These revisions have been incorporated into the Final Draft Housing Element as regular text) SECTION 2 DRAFT GOALS POLICIES& OBJECTIVES 3. Conservation Objective The conservation objective refers to maintaining existing affordable housing through measures such as rent subsidies and implementing land use controls during the program period. The quantified objective includes two extremely low-, one very low, and one low-income household that would obtain rental assistance through the County Housing Authority's Section 8 Program. The County Housing Authority reports that the Section 8 Rental Assistance Program, as of January 2008, assists two resident households. The quantified objective assumes that the Housing Authority through additional funding from HU® and/or landlord outreach efforts will provide assistance to two additional households during the planning period. 4. Preservation Objective The preservation objective refers to maintaining the affordability of housing units with affordability covenants that would expire on or before 2016. The City has two projects with affordability covenants; however, the covenants will expire after 2016. Although the objectives include maintaining these housing units as affordable, no program is needed, as the housing units are not at risk of conversion from affordable to market rate housing. C. EXTREMELY LOW INCOME HOUSING NEEDS The Cites guantifled objective Is to assist 17 extremely low-income households through the combined results of several housing programs. These programs include. 7 new housing units to be included in the RDA Crestridge Senior Housing site 7 rehabilitated housing units as part of the Housing Improvement Program. Some of the assisted households rnav be disabled homeowners. 2 householders assisted by the Section 8 rental assistance program. 1 householder residing in an existing rent restricted housing unit. Some additional extremely low-income families will occupy some of the 20 apartment units currently under construction at Crestmont College. 2-7 SECTION 3 PROGRAM ADMINISTRATION AND OTHER ACTIONS Authority (SCHFA). and Industry Housing Funds. Funding for the Industry pn»0rmnn is limited to jurisdictions within a radius of 15 nnl|ea of the City of Industry. Rancho Palos Verdes ienot located within the radius boundaries. 4. Local a. Use of Redevelopment Agency Low and Moderate Income Housing Fund Per State law, the Redevelopment Agency has set-aside 2096 of its gross annual tax increment into the Agency's Low and Moderate Income Housing Fund. The purpose of the LK8| Fund is to inoreaoa, improve and preserve the City's supply of |ovv and moderate-income housing. As of . the Agency had a LyWlbalance o{$1,739, 267 $4�582,47-4. In [)eomnnber 2007, the City Council directed staff to baha the following actions for purposes ofexpending the LK4| Fund: Coordinate with a non-profit housing corporation hoset upand implement the purchase of existing units for the purposes of providing affordable housing. Release an RFCl to find a reputable affordable housing developer to move forward inthe development ofthe RDA-owned Cnaethdgasite. Prepare a First Time Homebuyers/Silent Second Program to assist buyers inpurchasing ahome. On May 6, 2008, the Ci!y Council authorized the use of up to 1838,180 of Redevelopment 6gency housing set-aside funds and Cily in-lieu fees to 12urchase two existing housing units. Basically, this Program involves the Agency 12urchasing uR to two existing market rate units and then re-selling them t auallfled moderate and low income buyers. The existing housing units will be purchased by the Agency in the summer of 2008. The homes will be sold to guallfled moderate income buyers by December 2008. Of the �838,180 authorized for the acguisition of existing housing, 1500,162 was from the RedeveloRment Agency's housing set-aside fund. After the expenditure of this amount, the Agency estimates a balance of 11,239,105 ($1,739,267 less 1500,162). Through the end of the Housing Element planning period (June 30 2014h the 6gency projects to accrue additional money in the housing set-aside fund, resulting in a projected balance of 13,035,826. However, it is the Agency's intent to utilize the remaining funds towards the RDA Crestrilge Senior Housing Rroject, and will exl2end excess surplus funds per the reguirements of State Redeveloment Law. -' In Lieu Fees Although the City prefers that developers that are obligated to provide mfhondmb|o housing units provide the units on-aita, in-lieu fees can be paid instead of providing the affordable housing units provided that the City Council oppnzvmo the payment of the in- 3~5 SECTION 3 PROGRAM ADMiNISTRATION AND OTHER ACTIONS lieu fees. The City Council established anin-lieu fee of$201.053 per required affordable unit plus a1D% administrative fee. (Resolution 2OO5-112, Sections 3and 4) Through the In Lieu Fee Pnnzran1. the City has collected $256'683 from the 8aabrmeza Tract in June 1998; however, as of April 30, 2008, the balance of this fund had increased to 1338,018 due to interest. Through the In Lieu Fee Program, the Ci also collected an4 $596,494 from the Oceanfront Estates Tract in March 20001 however, as of Al2rII 30, 2008, the balance of this fund had increased to $786,27 due to interest f9F a tetal estimated balanGe, plus inteFest, ef $1,418,568. The Seabreeze Tract in lieu fee amount has been allocated for the acquisition of existing housing for low income housing. In addition to residential projects, the Development Code also requires non-residential projects to pay an in lieu fee towards the development of affordable housing if the p 'ect exceeds certain thresholds. The Long Point Resort Project triggers this nsquinennent. The in lieu fee is $931,910 and needs to be paid prior to the issuance of a certificate of use and occupancy. C. RESPONSIBLE AGENCIES, GENERAL PLAN CONSISTENCY AND PUBLIC PARTICIPATION Section 65583(o)(7)states: "The program shall include an identification of the agencies and officials responsible for the implementatio of the various actions and the means by which consistency will be achieved with other general plan elements and community goa . The local government shall make a diligent effort to achieve nublic participation of all economic segments ofthe community in the development of the housing element and the program shall describe this effort." [emphasis added] I. Agencies and Officials Responsible for Implementation Actions o. Section 8 Rental Assistance-- County of Los Angeles Housing Authorit The Los Angeles County Housing Authority administers the Section 8 Rental Assistance Payments Program throughout most of the County. This program helps very low-income households to have monthly rent payments within their means. The family pays approximately 3096 of his/her income towards rent, and the Housing Authority pays the balance of the rent tothe property owner,who participates in the program on a voluntary basis. As previously notgd, the high market rents in the City make it difficult to implement this program.As of January 2008,this program is assisting two low-income households. b. CDBG Program-- Los Angeles Community Development Commission The CDC administers the C[)BG program for the County and several incorporated cities. The proposed FY08-09 CDBG budget for the City of Rancho Palos Verdes is $189,617' Projects include the Home Improvement Prognann, services for physically and developmentally disabled persons, and CC)BGodrninimtmst|on and planning. 3~6 SECTION 3 PROGRAM ADMINISTRATION AND OTHER ACTIONS Administration ofthe City's land use regulations, including zoning, current and advance planning. Enforcement of the City's Development Code and Building Codon; iaaumnma of building permits, plan check services, building inspection services. 2. Consistency with other General Plan Elements and Community Goals The Housing Element ioconsistent with the General Plan. None ofthe sites identified in the inventory ofland resources require o re-zone. In addition, no major changes to the Gmnams| Plan and Land Use Element have been made since adoption of the 3000-2005 Housing Element. The City is in the process of updating the General Plan. Progress on the General p|mn Update had been delayed olnoa the December 21, 2004 Council meeting vvhi|o Staff focused its attention on a Yehetv of high profile development projects and other issues. In April 2006, Staff sent out m Request for Qualifications (FlFQ) to obtain consultant assistance with updating the General Plan, and mn February 2O. 2OO7. the City Council entered into on agreement with three consulting finnm to 000iat Staff with the update. It is anticipated that the consultant's work will be completed sometime in 2008. 3. Public Participation of all Economic Segments of the Community The City's policy is to encourage public participation of all economic segments of the community. There are no Identified groups in the City that are comprised of low and moderate income persons. Conseguently, the City's efforts to reach this population segment, as well as other segments, included notices to all homeowner associations and churches and special e-mail notices. Through these efforts, practically all householders were aware of the opportunity to provide inpu on the Housing Element goals, Rolicles and programs. In addition, the Cl obtained inRut from oLganizations reRresenting the interests of low and moderate income households, as well as special needs populations such as low income families, disabled persons, and seniors., The following efforts have been or will be accomplished during the course of preparing the Draft and Final Housing Elements: City Council Public Hearing to obtain public input on the activities that should be awarded CDBG funds. The Public Hearing was held on December 18, 2007. The City Counoil approved funding for the Housing Improvement Program, REACH progusnn (developmentally disabled) and program administration. Planning Commission Public Hearing and Workshop onthe Draft Housing Element. The Public Hearing was held on February 12, 2008. Churches and homeowners were invited to the Public Hearing. However, no individual orassociation offered testimony atthe Public Hearing. City Council Public Hearing and Workshop mnthe Draft Housing E|ennoni The FzubUo Hearing was held on K8omzh 4, 2008. Churches and 3~8 SECTION 3 PROGRAM ADMINISTRATION AND OTHER ACTIONS homeowners were invited tothe Public Hearing. However, no individual orassociation offered testimony otthe Public Hearing. These public hearings/workshops were advertised by publication of notices in the local newspaper on January 24, 3008, February 16, 2000 and February 20, 2OOO. Staff also provided anotice via electronic mail to 379 individuals registered as interested parties for the General Plan update. Lastly, Staff provided olink tmthe Draft Housing Element through the City's website. htti)://www.palosverdes.com/rpv/planning/content/Generat Plan Update. cfm)' ' Interviews ofthe following organizations toobtain input onhousing needs and possible action programs: Jamboree Housing Corporation Peninsula Seniors (Marty [JodeU\ REACH Program for Developmentally Disabled Persons (Mona Dell) The Salvation Army CreatnonntCollege—School for Officer Training (Major Donald Hostetler) Jamboree Housing Corporation has worked with City staff on developing programs to address the community's housing needs. Jamboree has submitted a proposal to administer orental assistance program for the City. The Peninsula Seniors is a non-profit tax-exempt 5O1(o)(3) organization. The Peninsula Seniors mission is "to improve a healthy and independent lifestyle and tomaximize the quality of life for all the adult population on the Peninsula and the surrounding communities providing programs and service." The non-profit holds a regular Peninsula Seniors Lecture Series. The housing needs described the Peninsula Seniors focused on more financial considerations (i.e., reverse mortgages) than on physical modifications to advveUing. The Peninsula Seniors sul2oorted the programs included in the Draft Housin Element, particularly the CI!Yls efforts to Rroduce affordable senior housing. Th Peninsula Seniors suggested that members be surveyed through their Newsletter to assist the Cily in the implementation of the Crestridge,senior housing site, onc a develol2er has been selected. The majorhouoing need identified by the REACH Program was quality care in group homes for the developmentally disabled. Many developmentally disabled youth and adults live in group homes. The REACH Program staff will be Informed of revisions to the Housing IrgiRrovement Program RrIor to apl2roval of the Housing EWM2Dt by the Cily Council. The stafrs ingut will be obtained grior to the program guidelines being revised. According to Major Hostetler, students/cadets mtC:nootmorkCollege are in the extremely low and very low-income groups. During the program, the students/cadets dm not work. Hovvever, they are given o paid internship with the organization during breaks. The 3~9 SECTION 3 PROGRAM ADMINISTRATION AND OTHER ACTIONS Crest ont College staff expressed support for the develol2ment of fam!IY apartment housing at the College site® 3-10 SECTION 4 DRAFT HOUSING PROGRAM Chart 4®1 City of Rancho Palos Verdes Housing Element Programs Program Category Specific Program #1 Actions to Make Sites Available to 1 Land Use Element/Specific Plans Accommodate RHNA Program 2 Development Code Amendment Program #2 Assist in the Development of Housing to 3 Section 8 Rental Assistance Program Meet the Needs of Extremely Low,Very' 4 Crestridge Senior Affordable Housing Low and Low Income Households Program 5 Moderate Income Second Unit Program 6 Conversion of Existing Housing to Affordable Housin #3 Address and,Where Appropriate and 7 Reasonable Accommodation Procedure Legally Possible, Remove Governmental 8 Licensed Residential Care Development Constraints to the Maintenance, Code Revision Program Improvement and Development of Housing 9 Density Bonus Ordinance Program #4 Conserve and Improve the Condition of 10 Housing Code Enforcement Program the Existing Housing Stock 11 Home Improvement Program #5 Promote Housing Opportunities 12 Fair Housing Services Program for All Persons 13 Fair Housing Information Program 4-2 SECTION 4 DRAFT HOUSING PROGRAM CHART 4-2 CITY OF RANCHO PAL OS VERDES HOUSING PROGRAM SUMMARY Programs Responsible Quantified Time Funding Source Agency Objective Schedule 1. Land Use Planning, Building & 60+ housing 2006-2014 General Fund for Element/Specific Code Enforcement units Dept. staff Plans Program 2. Development Planning, Building & Amendments 20092009 General Fund for Code Amendment Code Enforcement Adopted June 30, Dept. staff Program 2009 3. Section 8 Rental Housing Authority of 4 housing 2008-2014 Housing Assistance Los Angeles County units for Authority Program lower income Funds 4. Crestridge Senior Redevelopment 26 units for 2008-2014 Housing Set- Affordable Housing Agency lower Aside and Program income In Lieu Fees households 5. Moderate Income Planning, Building & 11 units for 2006-2014 General Fund for Second Unit Code Enforcement moderate- Dept. staff Program income households 6. Conversion of Redevelopment 2 moderate June 30. Redevelopment Existing Housing Agency and the income units 2009 Agenc to Affordable 9 Ut I low income Housing Set- Housing unit Aside Funds & In Lieu Fees 7. Reasonable Planning, Building & Adopted 20082009 General Fund for Accommodation Code Enforcement Procedure June 30, Dept. staff Procedure 2009 8. Licensed Planning, Building & Adopted 2098-2999 General Fund for Residential Care Code Enforcement Revisions June 30® Dept. staff Development Code 2009 Revision Program 9. Density Bonus Planning, Building & Adopted 2098-2999 General Fund for Ordinance Program Code Enforcement Ordinance In Dept. staff rogress, 10. Housing Code Planning, Building & 10 new cases 2008-2014 General Fund for Enforcement Code Enforcement per Dept. staff Program month 11. Housing Public Works Dept. 40 housing 2008-2014 CDBG Funds Improvement units Program 12. Fair Housing Fair Housing NA 2008-2014 CDBG Funds Services Program Foundation 65 clients 13. Fair Housing Planning, Building & Information 2008-2014 General Fund for Information Code Enforcement Distributed Dept. staff Program 4-3 SECTION 4 DRAFT HOUSING PROGRAM 3. Housing Programs a' Continue Current Zoning and Development Standards and Services and Facilities No actions are necessary: ToEnsure Appropriate Zoning and DevelopmentStandards and ToEnsure Adequate Services and Facilities The Sites Inventory (Technical Appendix D)explains that the City has: "...zoning and development standards that facilitate the location, o0ng, capacity, and price of residential development to meet identified needs, particularly new construction for lower-income hmuaeho|do." The Sites Inventory explains that nochanges are needed bostandards: "...establishing nnin|nnumn densities, rn|n|nnunn floor areas, maximum lot ooVanage, allowing rnininnurn building, rear and aide yard setbacks, reduced parking and amenities requirements, and other controls such as streamlined architectural and design review$tandardm." Accordingly, the City will continue to implement the Land Use £le�nantlSommfic Plans Ffoonynn. During the planning period, the City will continue to implement the adopted residential land use policies as contained in the Land Use Element and adopted Specific Plans. This program involves the continued processing of current projects such as those listed below: Point View o[Lower Fl|ohuOO Nantasket Residential Project Cnaetr|dge Senior Housing RDA-owned Cnaothdgaproperty MarymountCoUege HighhdgmCondominium Project These projects will contribute to the City accommodating the entire Regional Housing Needs Assessment (RHNA) allocation of 60 housing project is under construction and will produce 20 family alpartment units. In addition, the General Plan Update will not revise the land use designations of the above-mentioned sites and projects. b' Actions to Facilitate and Encourage the Development of a Variety of Types of Housing —Development Code Amendments The Development Code Amendments Program will achieve the goal of variety of housing types in order to implement new Housing Element Levv requirements. In particular, this F*no0narn is designed to satisfy all the requirements of GB 2, which requires designation of zones that permit emergency shelters. 4-5 SECTION 4 DRAFT HOUSING PROGRAM 1. Emergency Shelters: Establish a zone or zones where emergency shelters are a permitted use and with sufficient capacity to accommodate the City's need for emergency shelter. This amendment will satisfy the SB 2 requirements as stated below: Government Code Section 65583(a)(4)(A) requires the City to identify— "... a zone or zones where emergency shelters are allowed as a permitted use without , a conditional use permit or other discretionary permit. The identified zone or zones shall include sufficient capacity to accommodate the need for emergency shelter.... except that each local government shall identify a zone or zones that can accommodate at least one year-round emergency shelter." "If the local government cannot identify a zone or zones with sufficient capacity, the local government shall include a program to amend its zoning ordinance to meet the requirements of this paragraph within one year of the adoption of the housing element." [emphasis added] "Emergency Shelters" and "Transitional Housing" are uses permitted in the City's Commercial District (CG)with approval of a Conditional Use Permit (CUP). The City's CG District is located along its main commercial corridor of Western Avenue providing direct access to public transportation and other nearby public services. 2. Transitional Housing and Supportive Housing: Identify in the Development Code that transitional and supportive housing are considered a residential use of property. This effort will include definitions consistent with State law, as well as development standards for these residential uses. HCD advises that transitional housing sites should be close to public services and facilities, including transportation. HCD also states that development standards such as parking requirements, fire regulations, and design standards should not impede the efficient use of the site as transitional housing. 3. Single-Room Occupencv Units: Identify in the Zoning Code the zones/sites where single room occupancy units are permitted. This effort will include a definition of SRO units consistent with %tate law as well as development standards for this residential use; ens site area, unit size and occupan2y, kitchen facilities, bathroom facilities parking, and management. This Program will be completed in by June 30, 2009. 4- SECTION 4 DRAFT HOUSING PROGRAM In additiontheCitis in the rocess of a coml2rehensive update to the General Plan, which is scheduled to be completed by June 2009. Following this update, the City will embark upon updating its specific plans, one of which may include the Western Avenue commercial corridor. Through this specific glan update, the City will consider allowing for mixed-use development that includes residential uses along Western Avenue. The Western Avenue (commercial corridor) Specific Plan is scheduled for completion by June 2010. The Specific Plan will contribute to the City's efforts to achieve a variety of housing types. PROGRAM CATEGORY#2: ASSIST IN THE DEVELOPMENT OF ADEQUATE HOUSING TO MEET THE NEEDS OF EXTREMELY LOW-, VERY LOW-, LOW-, AND MODERATE- INCOME HOUSEHOLDS Government Code Section 65583(c)(2) states that a housing program shall: "Assist in the development of adequate housing to meet the needs of extremely low-, very low-, low-and moderate-income households." The term "development" includes providing for affordability covenants in existing housing and construction of new affordable housing units. 1. Housing Need Summary The most significant housing need is cost burden or overpaying, which is defined as spending 30% or more of gross household income for housing including utilities. In 2000, according to estimates developed by HUD, overpaying was adversely affecting— 413 lower income renters 735 lower income owners In addition, the RHNA allocates a need of 37 new housing units for low- and moderate- income households. 2. Quantified Objectives The quantified objective is to assist four low-income households through the Section 8 Rental Assistance Program. In addition, the City's objective is to meet the RHNA need for low and moderate-income household through the following programs: Crestridge Senior Affordable Housing Program (RDA-Owned Site) Second Unit Development for Moderate Income Households. The objectives are listed below: 7 units for extremely low income households 9 units for very low-income households 10 units for low-income households 11 units for moderate-income households 4-7 SECTION 4 DR4PT HOUSING PROGRAM 3. Housing Programs -' Section Rental Assistance for Cost Burdened Renters The Los Angeles County Housing Authority administers the Section BRental Assistance Program|nthe unincorporated area and O2cities. Rancho Palos Verdes has approved a participation agreement with the Housing Authority that authorizes it to provide rental assistance to very low-income households living in the City. An estimated 241 vary low- income renter households are overpaying and eligible for Section 8 rental assistance. ow-incomnerentarhouseho|deareoverpayin8andeUgib|ehzrSeotion8nenta} aaaiatanoa. The Housing Authority's has designated Rancho Palos Verdes as on "exception rent an*m.° This allows the Housing Authority to provide rental assistance tofamilies living in housing with rents about 20% higher than the stated Section 8 rent ceilings. The County Housing Authority reports that the Section 8 Rental Assistance Program, as of January 2008' assists two resident households. The quantified objective assumes that the Housing Authority through additional funding from HUD and/or landlord outreach efforts will provide assistance kztwo additional households during the planning period. In order to assist the Housing Authority staff in program implementation, the City will do all of the following: Transmit to the Housing Authority the completed Apartment Rental Survey and any future updates of these surveys. [The omnnp|etad ounxay is found at the end of Technical Appendix C. The City will transmit the completed apartment rental survey to the Housing Authority during month ofFebruary 2OO8] Assist the Housing Authority in conducting its Landlord Outreach Program in Rancho Palos Verdes. The City will contact the Housing Authority staff to determine e schedule for conducting a Landlord Outreach effort. The City will attempt to complete the Landlord C}utnmmoh Program in FY 2008- 2009. Inform the Housing Authority staff of the City's initiatives to provide affordable housing through the existing housing stock. After approval of the Housing Element, the City will transmit to the Housing Authority staff the relevant program descriptions and funding sources. Explore with the Housing Authority abaff, opportunities for use of the Section 8 program in existing apartment housing. The City will explore these opportunities following completion of the Landlord Outreach Program and the Authority's review ofthe Apartment Rental Survey. b. Crestridge Senior Affordable Housing Program(RDA-Owned �j� Twenty-six lower-income housing units is the City's share ofthe regional housing need. The sites inventory estimates that the RDA Crestridge property can accommodate 30 ƒo 50 housing units. The City's Redevelopment Agency owns this site, which is zoned for senior housing. The Agency has transmitted an RFC2boseveral qualified non-profit, ofhzoiab|m housing developers. The development of this site will accommodate the RHNA needfo ly low, very low and low-income i SECTION 4 DRAFT HOUSING PROGRAM caretakers and other workers at the facill!y that will not be age-restricted. The RFQ states the following goal for the project: "A well-planned, well-designed and aesthetically pleasing affordable housing project for senior citizens of approximately 40 units that provides services and amenities catering to senior citizens. With this project, it is the City's goal to meet its 26-unit low and very low income housing need as mandated through the Regional Housing Needs Assessment (RHNA) process adopted by the Southern California Association of Governments (SLAG) and the California Department of Housing and Community Development(HCD)." The RFQ also states that funding also may be available from the Redevelopment Agency's Low and Moderate Income Housing Fund and City in lieu fees. ile- jaRuaFy 24,2008 G f ebFua'Fy 25, 2008 Respensete RF=Q due (The Gity reneived F respenses MaFGh19, 2009 ^�•PF,R, !ents ovn "Sheen Lost" of DevekHaem April 7, 2008 Develepment pmpesalc-dare —I�May� `998 Ilnvnlnner seleeted by dnennv/ ay-viz v cvu-rvpc�-vc-r�+acca-�-c�cnv9-r /lFfer_or Cvnh isive klegetlatlen Staff has been working on this Program by releasing an RFQ to find a reputable affordable housing developer. Five developers (for-profit and non=profit) submitted responses to that RFQ in late February. Staff and Tierra West Advisors have evaluated the responses and have determined that the top three developers shall submit formal proposals for the development of the site. These top three developers will then be Interviewed by a Panel composed of Cites Staff, City Attorney, Tierra West Advisors Staff, and the Council ad hoc subcommittee members for the Crestrid a Rrol2eft. It is anticipated that interviews will be conducted in June 2008 and a recommendation for developer selection would be presented to the Board/City Council in July 2408. c. Second Unit Development for Moderate Income Households The moderate-income housing need is 11 housing units. During the planning period (after January 1, 2006), one second unit has been constructed and another is under construction (as of late January 2008). Based on past construction trends, nine additional moderate-income second units will be developed during the balance of planning period—January 1, 2008 through June 30, 2014. During the 2000-2005 period, four moderate-income second units were constructed; or an average of one every 15 months. This construction rate translates to five additional second units during the 78-month period from January 2008 through mid-year 2014. Through program efforts, the City will facilitate the development of the additional four second units that are needed to accommodate the moderate-income housing need. - SECTION 4 DRAFT HOUSING PROGRAM In summary, the need will be accommodated through the development of second units onfollows: Constructed 1 Under Construction 1 Development Trends 5 Additional Program Efforts 4 Second units are allowed in all RS and RM zones. There are enough RS and RM sites to facilitate the development ofthe additional nine moderate-income eeocnld units during the January 1, 2OOBthrough June 3O, 2O14planning period. In order to facilitate the development of second units on existing developed lots, the City will take the following actions: Publish an article on second unit development and standards in the "CommunityNewsletter." guarter of 2008 and will be re-Rublished at least annually. K4ohe uvoHab|a a handout/flyer on second unit development and standards at the Planning and Building counters. The handout/flyer will be produced and available by the fourth guarter 2008. Distribute information on second units to homeowner associations and at senior Center by the fourth guarter 2008. Marketing and promotional materials on the benefits and value of second unit development will be distributed to homeowners atleast annually. Complete o survey ofother methods used by cities to promote second unit development. The Cily sRecifically will review and evaluate the applicability of the following second unit programs: 1) Santa Cruz AccessoEy Dwelling Unit Develol2ment Program and 2) San Luis Obispo Coupty Second Unit Stock Plans, and consider whether these programs can be im2lemented in the Ci!y of Rancho Palos The City will complete the review and evaluation by the first guarter 2009 and transmit recommendations to the Planning Commission and Cily Council at that time. Continue to track and monitor the development of second Units and include the information in the Housing Element's Annual Progress Reports. d. Conversion of Existing Housing to Affordable Housing On May 6, 2008, the City Council authorized the use of uR to 1838,180 of Redevelopment Lkgency housing set-aside funds and City in-lieu fees to purchase two existina housing units. Basicall this Program involves the Agency and the C& 2urchasing uF? to two existing market rate units and then re-selling them to 4~10 SECTION 4 DPAFT HOUSING PROGRAM qualified moderate and low income buyers. The existing housing units will be purchased by the Agency in the summer of 2008. The homes will be sold to gualified moderate and low income buyers by December 2008. PROGRAM CATEGORY#3: ADDRESS AND, WHERE APPROPRIATE AND LEGALLY POSSIBLE, REMOVE GOVERNMENTAL CONSTRAINTS TO THE MAINTENANCE, IMPROVEMENT AND DEVELOPMENT OF HOUSING More specifically, Government Code Section 65583(c)(3) states that a housing program must: "Address and, where appropriate and legally possible, remove governmental constraints to the maintenance, improvement, and development of housing, including housing for all income levels and housing for persons with disabilities. "The program shall remove constraints to, or provide reasonable accommodations for housing designed for, intended for occupancy by, or with supportive services for, persons with disabilities." IA Housing Need Summary Technical Appendix B identifies three governmental constraints: Lack of"Reasonable Accommodation Procedure" Need for revisions to the Development Code's group home requirements Need to amend the City's Density Bonus Ordinance. 2. Quantified Objectives This Program Category does not involve the production or rehabilitation of housing; therefore, quantified objectives cannot be set for this Program Category. 3. Housing Programs a. Adopt a Reasonable Accommodation Procedure The Federal Departments'of Justice (DOJ) and Housing and Urban Development(HUD) as well as the California Attorney General all encourage cities to adopt a reasonable accommodation procedure. For example, both DOJ and HUD state that- "Local governments are encouraged to provide mechanisms for requesting reasonable accommodations that operate promptly and efficiently, without imposing significant costs or delays. The local government should also make efforts to insure that the availability of such mechanisms is well known within the community." 4-11 SECTION 4 QPAFT HOUSING PROGRAM compliance; however, if compliance is not achieved then the City does pursue its available legal remedies. b. Home Improvement Program The Home Improvement Program provides grants of up to $5,000 and deferred loans up to a maximum of $10,000, which is payable upon the sale or transfer of title to the property.This loan is a zero percent interest loan. Since inception, more than 70 improvement projects have been completed through the award of$700,000 of grants and/or loans. Outreach for program implementation involves program announcements on the City's Website; availability of program flyers at the Public Works Department; distribution of program information to homeowners associations; and periodic workshops. The City's Website continually maintains and updates information.on the Housing Improvement Program. The program flyers are continuously made available to the public at the Public Works Department, and by the Code Enforcement Department. The homeowner associations will be informed of the Housing Improvement Program at least twice a year, The Public Works Department will conduct at least one workshop each year to inform potential program participants of the Housing Improvement Program. The City will amend the program flyer to include a as eligible expenditures of CDBG funds ®n modifications and retrofits to homes occu !ed by one or more disabled persons. The eligible modifications and retrofits include, but are not limited,to: Installation of grab bars Wheelchair ramps Lifts Expanded/modified doorwpys Railings Modifications of steps Homeowners with one or more disabled occupants will be eligible for the $5,000 rants and $10000 deferred loans. The City will inform the public of the grants and loans for modifications and retrofits through the program flyer, the other methods previously described and the Peninsula Seniors Newsletter and REACH program for develo,Rmentally disabled gersons. PROGRAM CATEGORY#5 PROMOTE HOUSING OPPORTUNITIES FOR ALL PERSONS Section 65583(c)(5) requires that the housing program: 4-15 SECTION HO USING PRC GRA M "Promote housing opportunities for all persons regardless of race, religion, sex, marital status, ancestry, national origin, color, familial status, or disability." 1. Housing Need Summary In California, it is illegal to discriminate in housing against anyone because of race, color, ancestry, religion, sex, marital status, disability (including AIDS and HIV diagnosis), national origin, familial status, sexual orientation or source of income. Housing discrimination complaints may be filed with HUD; the California Department of Fair Employment and Housing; and the Fair Housing Foundation, which serves the South Bay communities including the City of Rancho Palos Verdes. Other fair housing needs include general housing counseling and resolving landlord/tenant conflicts. 2. Quantified Objectives 50 General Housing Counseling/Resolutions 10 Inquiries Cases 3. Housing Programs a. Fair Housing Services The City's Fair Housing Services Program will continue to promote fair housing through its participation in the County's CDBG Program. The City, in cooperation with the County and the Fair Housing Foundation, will continue to make available fair housing services to its residents.The services described below will be available to City residents. General housing counseling/resolutions involves Landlord/Tenant Counseling. The Fair Housing Foundation counsels landlord and tenants on their rights and responsibilities. The Housing Counselors counsel each client initially to determine if any fair housing violations have occurred. The client then receives information on the resolution available for their specific concerns. Some examples of the housing issues are eviction, rent increases, notices, and habitability. Clients make inquiries in regard to possible discrimination. Counselors work with the clients to determine if the inquiries pertain to landlord/tenant issues or discrimination. Following inquiries, cases are opened when the information gathered through the counseling and inquiry phase substantiates possible discrimination based on state and federal law. In order to implement this Programa, the CI!y will accomplish the following during the planning period: Publish a Fair Housing Ramphlet that summarizes the state and federal fair housing laws. The Barn hlet will be produced by the second guaer 2009. Following publication, the City will make the Fair Housing pamphlet available at the Planning and Public Works counters. 4-16 SECTION 4 OP.4F-T HOUSING PROGRAM The Ci!y will coordinate with the Fair Housing Foundation to hold one Fair Housing Workshop each year. Each Fair Housing Workshop will have a theme such as reasonable accommodations Prepare a summa[y of the fair housing services provided each year and identify emerging fair housing Issues. The summary will be transmifted to the Planning Commission and CI!y Council and included in the Housing Element annual 12rogress reRort. Each nar the City will work with the Fair Housing Foundation to identify services that should be emRhasized in the ul2coming year. This action will be accomplished prior to the Ci!y Council consideration of the CIDBG annual funding plan. b. Fair Housing Information Program :P4e- Cit, All assemble fair housing infamnatiGR and make it available on the--G#o Websit,-- The City will establish and implement a Fair Housing Information Program. The information ffiay Will include, but 44 not be limited, to: Summary of Federal and State Fair Housing Laws List ofagencies where housing discrimination complaints may befiled Information onfair housing accessibility guidelines � � m * TECHNICAL APPENDIX B GOVERNMENTAL HOUSING CONSTRAINTS In addition to single-family and multi-family zones, housing also is permitted in the Institutional Zone.The list below provides a summa!y of the Institutional Zone: The Institutional Zone accommodates this housing since the Fone allows for educational uses, including colleges, with a CUP. Further, this Zone allows for ancilla[y uses and developments, which includes dormitories and housing fo The Institutional Zone also allows homes for the aged. e development standards (Section 17.26.040) allow for 16- foot high structures, but this height can be greater with a The unit counts were not established by any official standard since the Institutional Zone does not have a maximum Tensily. The number of units is primarily based ugon the need of the Institution and student Ropulation. � Crestmont Collj2gS has received approval of their CUP for apartments and was recently issued a building permit for the aRartments on April 3, 2008. Construction of the project has already begun, and it is anticiRated to be completed b:j December 2008. The Crestmont College site is zoned Institutional and will provide 20 apartment units for lower income families. 0 Minimum Dwelling Unit Sizes: The City does not impose minimum housing unit sizes based either ontotal square footage or square footage in terms of the number of bedrooms. 3) Design Criteria: The City has not established architectural design chterieE however, new single-family residences and malor additions to existing single- family residences reguire a Neighborhood Comi2atibillilly analysis. Although no design criteria is established,the 12rocess and analysis ensures that such projects are comRatible with the Immediate neighborhood with regards to size, setbacks, architectural§tyle and appearance. 40 Open 8oeum Requirements: Section 17.04.040.[} of the City's Development Code establishes the open space requirements for multiple family zones as follows: 'Y\s pad of the open space area naquired, all of the units shall have an appurtenant private patio, deck, balcony, atrium or ao|ahunn with m minimum area mfone hundred fifty square feet, except that one bedroom unit shall have o minimum of one hundred thirty square feat of private open space. Such space shall have a configuration that would allow a horizontal rectangle ofone hundred square feet in area, and noside shall be less than seven feet in length. Such space shall have atleast one eieothoe/ outlet. Such space may count for up to thirty percent of the required open space anaa." B.7 TECHNICAL APPENDIX B GOVERNMENTAL HOUSING CONSTRAINTS §2 Parkin-g Reguirements: Two-bedroom apartment units are reguled to have 2.25 Rarking spaces with one space completely enclosed in a garage. The reguirement for a space to be enclosed adds incrementally to the total production costs of rental housing. The dimension of a one-car garage is 180 square feet (9 feet !2y 20 feet). The costs for a one-car garagge would represent only a small percentage of the total costs of new housing, including construction and land costs. This additional construction cost adds Incrementally to the total development costs, but is not considered a maRor constraint to affordabli Within the planning period all multifamily housing opportunities already will be approved as a result of the development of the Crestridge senior housing site and the construction of the 20 agartment*unilts at Crestmont College. No other vacant or underutilized muldfarrilly housing sites are available for development. In the event that mixed-use develoRment that includes residential uses along Western Avenue is approved as Rart of a specific Rlan, the plan will establish gKking 60 Specific Plans: Two Specific Plans guide residential uses. Specific Plan District | is the coastal specific plan district. This district comprises all land seaward of Palos Verdes Drive South and Palos Verdes Drive West. The requirements of this District require Coastal Permits pursuant toChapter 17.72for specified land uses. Specific Plan District IV encompasses all pmJpediee, which fronton the west side of Western Avenue from and including 2881810 29421 Western Avenue. This area is located between Specific Plan Districts || and |||. The Plan encourages quality renovation and development that builds on the opportunities available to this area and eliminates, or reduces, the constraints this area faces. 71 Second Unit Development Gbanchands: Second units are permitted in all R8 and RM zone districts. The development standards are described in Section 17.1Umfthe City's Development Code. The total floor area for a detached second unit shall not exceed 1.200 square feet. The total fluor area for an attached second unit shall not exceed 3096 of the floor area of primary residence floor area. The second unit rnua1 include one bathroom and one kitchen and ialimited boamaximum oftwo bedrooms. A garage space must beprovided. 0 Affordable Housing Land Use Controls: To encourage and facilitate the development ofaffordable housing, the City has adopted the following land use controls: Citywide Affordable Housing Requirement: All new residential developments of five or more dwelling units are required to provide up to 5% mfall units affordable tovery low income households mrtoprovide up to 1096 of all unite affordable to low income households. The affordable units shall be provided on-site or off-site. Upon City Council approval, in- lieu fees can be paid instead ofproviding the required affordable housing units. The City Council established enin-lieu fee of$1 per square foot of habitable residential structure. Housing Impact Fee: in order to mitigate the impact of local employment generation on the local housing market, new nonresidential development orconversion ofexisting development toamore intense use, must make B~8 TECHNICAL APPENDIX S GOVERNMENTAL HOUSING CONSTRAINTS Variance $1,630 Tentative Parcel Map $4,033 Dedications and fees associated with on-site and off-site improvements are generally required of new subdivision tracts or parcel maps, not for improvements on existing lots. Such improvements and fees are based on the actual cost of providing needed infrastructure and public services. It is difficult, if not impossible, to estimate these costs on a "typical" development basis. For instance, parkland dedication fees amount to the equivalent of funding needed to provide .014 acre of parkland per dwelling unit (approximately 4 acres of parkland per 1,000 population). The dollar amount of the fee, however, is dependent on both the value of the land involved and the number of units proposed for development. Other improvements, such as roadways or landscaping, are particularly site specific,differing widely from project to project. Although the fees for "typical" single-family and multi-family develoaments cannot be computed, the aggregate total fees would represent a small percentage of the cost of new housing in Rancho Palos Verdes. According to the City's Building Official, construction costs range from $250 to $300 per square foot. The reasons for such relatively high construction costs are that geology and expansive soils conditions often require that new construction have deepened footings, grade beams, caissons, removal and compaction of soils and other conditions that drive up costs. In addition, land costs are extremely high in the City. For instance in 2007 the lowest sales 2rice for a vacant residential lot was $525,000. As a result, the City's fees would represent a very small percentage of the total cost of new housing,which includes both land and construction costs. The Palos Verdes Unified School District has established school facility fees. The Palos Verdes Peninsula Unified School District Board of Education has adopted the levying of these fees in accordance with Assembly Bill 2926, Statutes of 1986, State of California. For residential development projects, the fee is $2.63 per square foot. Most of the City (pre-annexation) pays this amount. •The eastside of the City that was annexed in the 1980s pays an amount set by the Los Angeles Unified School District. The fees paid by residential construction are $4.18 per square foot of assessable space. The District allows a reduced fee of$2.63 per square foot for owners and developers of affordable housing. 2) Exactions: By definition, an exaction is a large capital improvement included in a project's approval for development (e.g., a park dedication, building a school, etc.). The City does not generally require large-scale capital improvements to be constructed by project applicants. Instead, the City's fees are intended to finance construction of such facilities. C. Conclusions and Findings The City concludes that the fees established by the City do pose a constraint to development. Fees for senior housing on the Crestridge RDA-owned site would be more than offset by the fact that the Agency owns this site. Since the City does not carry out exactions, they are not a constraint to local development. -15 TECHNICAL APPENDIX OVER ENTAL HOUSING CONSTRAINTS 6m processing and permit procedures a. Guidelines Identify and analyze the t pv es of permits, discretionary and standard approval procedures, and processing time required for recent residential projects, including all permits applicable to residential development. The element should also identify and analyze any overlay zones (e.g., Community Plan Implementation Zones, Hillside Overlay Zones, Environmentally Sensitive Areas, etc.). The element should identify and analyze the permitted uses in each zone. For example, if the jurisdiction requires a conditional use permit for multifamily housing zone, the element should analyze this permit procedure as a constraint. Other applicable regulations such as landscaping, design review policies, planned districts should also be included. For this analysis, localities should compare the permit and approvals process for a typical single- family subdivision and a typical multifamily project. [emphasis added] b. Analysis f) Types of Permits for Residential Land Uses by Zone District: The Residential Single Family zone districts permit single-family residential buildings, mobile homes and residential care facilities. Uses permitted subject to a conditional use permit include residential care facilities for seven or more persons. Uses permitted in the residential Multiple Family zone districts include single-family and multiple-family residential buildings. Part 6 provides a more detailed discussion on permit requirements for residential care facilities. 2J Muldfa & Rental Housing: The Housing Element Law requires cities to 'Facilitate and encourage the development of multifamily rental housing. More sl2ecifically, a housing element should include a review of existing development standards and permit procedures in the zones that allow multifamily housing to identify any constraints to rental housing. In Rancho Palos Verdes, all multifamily housing sites have been constructed or are being considered by the City for development. Multifamily rental housing needs will be met for lower income families through the facilities expansion of Crestmont College. The Crestmont College proiect— currently under construction and scheduled for co pietion by December 2008 -- accommodates 20 apartment units. The one multifamily vacant site is the DA-owned Crestrid a site which will be developed for affordable senior housing. The City and selected nonprofit houmng develo er will develop a project in accordance with the develo ment standards of the underlying Institutional Zone. The hermit processing and development of the site for affordable housing will be a function of several factors many of which will depend on the successful ap lil"ications for financing. ®16 .......... -REM rol.111008101JAM 0 . ----- ------ - Ro Elk Offy MINUITMW 111-flif k I WA F.103 1 Lol !l Ile RITI rmfelxlg ill IM 71 mt 0 sit * 1:1111111:111MI FoIN-7,1111111 - 0: 111MIMMA ff�TMrm=_ Z ilTT. .Rqr.rMmlAiMUMI._Tr= 0 r.RTIVA I.M. is a lei igilro rzTll9_TrTs7iT7W_,'MTt iwuollir-11�7 gal-in to a a.,j M Ile]RIM MIUM a ILOVI-It a TECHNICAL APPENDIX B GOVERNMENTAL HOUSING CONSTRAINTS All multi-family zones and housing have been constructed, or are being considered by the Cily for development. New single family residences, including tear-down rebuilds, that are no taller than 16-feet In height go through a Neighborhood Compatibilily (NQ process. The review focuses on the proposed size, architectural slyle. and setback, and the prol2osal Is reviewed against what is currently in the immediate neighborhood to ensure that the new structure will be compatible with the immediate neighborhood. Due to topog- raphy and soils conditions in the CIIL geotechnical reports must be submitted and approved Prio to 12rocessing a NC application for a new residence. The process also requires the 12roperty owner to construct a silhouefte illustrating the location and outline of the proposed residence. Further, the process reguires that a notice of the al2plication be mailed to all prol2eE!y owners within a 500-foot radius of the l2ropeLly. This process can take up to 6 months to l2rocess, and the decision making body is the Director of Planning. Now residences taller than 16-feet in height must also go through a Height Variation process, which is processed concurrently with the NC l2rocess. However, in addition to the review criteria of the NC, the review includes an assessment on view irngairment to other residences resulting from the proRosed structure, and an analysis on privacy infringement to determine whether the 12roject will infringe upon the adiacent progerties. The reguirements for processing are the same with regards to geotechnical, silhouetting, and notices, but the process may take up to 9 months to process. The decision making_body in these instances is the The average processing times of the Cit/ will not pose a constraint to the production of housing during the program period. Technical Appendix [} explains that unite constructed, under construction including Crestmont College, second units and senior housing to be developed on the RDA-owed site will satisfy the F{HNAe|kocation of 60 housing units. 61 Overlay Zones: Overlay Control Diathcts, according tothe Zoning Code' provide criteria that further reduce potential impacts, which could be directly created or indirectly induced by proposed and existing developments in sensitive areas of the City. These areas have been identified in the General Plan and other studies to be sensitive areas due to unique characteristics contributing significantly tothe City's form, appearance, natural setting, and historical and cultural heritage. The Districts include: Natural Overlay Control District OC-1 Socio-Cultural Overlay Control District OC-2 Urban Appearance Overlay Control District OC-3 Automotive Service Station Control District OC-4 The Natural Overlay Control District ioestablished to: Maintain and enhance land and water areas necessary for the survival of valuable land and marine-based wildlife and vegetation. B~1 8 TECHNICAL APPENDIX B GOVERNMENTAL HOUSING CONSTRAINTS Enhance watershed management, control storm drainage and erosion, and control the water quality of both urban runoff and natural water bodies within the Cit/ The Socio-Cultural Overlay Control District iaestablished to: Preserve, protect and maintain land and water areas, structures and other improvements which have significant historical, annhaao|ogioe|. or cultural importance; and . pnmida for the designaUon, protection and maintenance of land and water areas and improvements, which may be of unique scientific or educational value. The Urban Appearance Overlay Control District ioestablished to: Pnsoen/e, protect and maintain land and water areas, structures and other irnprovamnenta, which are of eiQndioont value because of their recreational, aesthetic and scenic qualities. Pnesen/a, protect and maintain the City's visual nhareoter, views and vistas. Eight sites are affected by the Automotive Service Station Overlay Control District,which is established to encourage service stations to remain in the City. Two of the eight sites have existing service stations and are residentially zoned. Application of the Automotive Overlay Control District does not hinder the City's capacity to meeting the RHNA, aethe sites have been developed for numerous years. None of the four Overlay Districts have been designated on the housing sites identified in Technical Appendix Q. Consequently, the Overlay Districts do not constrain or reduce the housing caRacily of the sites that are identified as C. Conclusions and Findinjqs The City's processing and permit procedures do not pose o constraint to the development of housing that would meet the need for new housing during the planning period' Each remaining site in the City needs careful attention because they are unique in regard to slopes, topography, geology, and other physical and environmental conditions. However, the sites identified in the land inventory (Technical Appendix D) will meet the RHYJAallocation of0Ohousing units. infact—inorder to meet the RHNA— only the RDA-owned Crestridge site will need to be processed. 6. Constraints on Housing for Disabled Persons a. Guidelines B~1 9 TECHNICAL.APPENDIX C NON-GOVERNMENTAL CONSTRAINTS T S b. Availability of Financing Financing has been readily available until early 2007. Because of the large number of southern California owners defaulting on subprime loans and the number of foreclosed homes, financing is not as available as it was prior to these two events. The number of approved loans also has dropped as mortgage loan standards have tightened, including the unavailability of 100%financing, the need for larger down payments, verified income, and a requirement for a solid credit history including high FICC) scores. As a result, the loan denial rates reported on Tables C-3 and C-4 should be interpreted with some caution. In part, the denial rates reflect periods of both easy credit approvals and financing and the start of more stringent standards in mid-2006. The numbers of City homeowners with notices of default is unknown at this time, as is the number of foreclosed properties. For borrowers with a solid credit history, savings to pay a 20% down payment and good income, financing is still available at reasonable interest rates. Fixed rate, 30-year loans are available for interest rates in the range of 6.0 to 6.5%. However, "jumbo" loans more than $417,000 have higher interest rates. C. price of Land Vacant land, which means lots, is extremely scarce in the City. From January 1, 2006 through the third quarter of 2007, a total of 15 lots sold. The lot sizes ranged from 9,100 square feet, up to almost 4.5 acres and were most likely sold for the construction of a single-family dwelling. The lot costs exceed the costs affordable by lower income households. d. Cost of Construction The cost of construction varies considerably due to several factors including the quality of construction. r e 900 to bwold.- PeF TI­ heweveF. According to the_City's Building Official, construction costs range from 1250 to $300 per sguare foot. The reasons for such relatively high construction costs are that geology and expansive soils conditions often require that new construction have deepened footings, rade beams caissons removal and compaction of soils and other conditions that drive uR costs. In addition, land costs are extremely high in the City. For instance, In 2007, the lowest sales price for a vacant residential lot was$525,000. Consequently, the cost of construction often — if not always —exceeds the total housing costs affordable by lower income households. C-3 TECHNICAL APPENDIX D INVENTORY OF HOUSING RESOURCES Table D-1 City of Rancho Palos Verdes—Invento of Residential S Project Geographic Size Housing Density Zoning Project Name Identifier (AcISF.) Units (DUs/Ac) Status Units Scattered Varies 9 Low Varies Completej- Constructed Locations 01/01/06 12/31/06 Tract Map 3200 Palos 3.92 13 Low RS-4 Under 52666 Verde Dr. Construction West I Point View or 6001 Palos 341 72 1 to 2 RS-1 & Vacant Lower Verde Dr. RS-2 Geotechnical Filiorium South Studies under review CEQA TBD Nantasket APN 6.5 4 Low RS-3 Vacant Residential 7573-014- Proposed Project2 013 Re-Zone to Crestridge 5600 block 9.76 97A46 10-15 Senior Vacant Senior Of Housing Housing Crestridge Road APN 7589 013-009 RDA 5600 block 1.5 to 2 22-40 15-20 Senior Vacant3 Crestridge Of Buildable Housing Property Crestridge Road APN 7589 013-905 NA Institutional Addition to Crestmont 30840 6759 SF 20 College Hawthorne Addition Site Blvd. 28627 SF A1212roved Total Marymount 30800 Palos Facilities 105 NA Institutional Addition to College Verde Dr. Expansion Site Proposed Highridge 28220 Varies 27 High RM—22 Vacant Condominium Highridge 22 PC Public Project Road. Hearing in 2008 134 the Landslide Moratorium Area;GUinside. 4«�='side ofNantasket between Beach View and Sea Cove Drives «Requamt for Qualifications (RFQo) have been circulated to nonprofit, affordable housing developers * `Afovdab|ea2adtmeNnthuuoingunitsfornodetaandtheirfono0eo o .Afondob|ebouoingunitoforemp|oyeeo TECHNICAL APPENDIX D INVENTORY OF HOUSING RESOURCES The following narrative describes how the housing unit caRacily was determined for the sites identified in Table D-1: Point View- Project includes a 76-unit subdivision; however, since a large portion of the Prolect is within the C11y's landslide moratorium area, additional geotechnical information has been submifted for review. It is anticipated that the 12rolect may be reviewed by the Planning Commission in 2009. The densitv is based on Ildly/acre, as this Is what the zoning allows for. Nantasket— staff review of the submitted 121ans has determined that the project, as proposed, meets the City's development standards. This project, however, reguires a General Plan Amendment and Zone ChanAe because the existing land use and zoning is Commercial Recreational. Crestridge Senior Housing — various development ap]211cations submitted In the 12ast for the site have reguested projects between 85 to 120 housing units. RDA Crestridge Property — staff has determined that at least 1.5 acres are buildable. Conseguently, staff has determined that at least 22 housing units can be constructed at the RDA—owned site. Staff also has determined that up to 40 housing units can be constructed if two acres are found to be buildable. Crestmont College — The Crestmont College project includes 20 family apartment units. Crestmont College has received apl2rovall o their CUP and was recently issued a building 12ermit on ARM 3, 2008. Construction of the project has already begun, and it is anticipated to be completed by December 2008. MaEymount College — Facilities expansion plan under review by the Highridge Condom!njMM_=_EE,qject is currently being reviewed by the Planning Commission b. Accommodating Regional Housing Need Allocation (RHN Government Code Section 6558D.2states @city: "...shall determine whether each site in the inventory can accommodate TECHNICAL APPENDIX Q INVENTORY OF HOUSING RESOURCES 1) Above Moderate Income Housing Need., The above moderate income housing need is 23 housing its. In a November 30, 2006 letter from HCD to SCAG. the Department noted that— "In updating their housing elements, |000| governments may credit, by applicable income category, housing units added since January 2OOO." The following constructed units accommodate a portion Vfthe housing need: 9housing units constructed calendar year 2OOO 12housing units constructed |ncalendar year 20O7 In addition, the following site under construction meets a portion of the housing need: Tract Map 5200O-13residential condominiums under construction |naddition, the following zoned sited accommodate aportion ofthe need: Cremtridge Senior Housing—85tm12Ohousing units HiQhridgeCondominium Project —24bz27condo units Thenshona' constructed houein8, housing under construction, and o zoned site, has satisfied the above moderate income housing need. The following two sites are included in the inventory but are not described as accommodating aportion ofthe above-moderate income housing need: Point View or Lower Fi|iohVmO Nantasket Residential Project .-F. ef these sites will have final -A-4k- the two sites is expecte� to have develop;ient anl2rovalls by the time that the Council approves the Housing Element. The approval of residential development on the "Point View" site, however, would trigger the requirement for on-site construction of housing affordable tovery low and low-income households. (|n addition to the above, the City has several infill R0 zoned lots that are being developed and will continue tobedeveloped during the planning pehod.) Moderate Income Housing 0geut The moderate-income housing need is 11 housing units. During the planning period (after January 1, 2006). one second unit has been constructed and another iounder construction (as oflate January 2OO8\' Based onpast construction trends, nine additional second units will bedeveloped during the balance ofplanning period—January 1. 2O08through June 3O, 2O14' D~6 TECHNICAL APPENDIX D INVENTORY OF HOUSING RESOURCES During the 2OOO-2OO5 period, four moderate-income second units were constructed; or an average of one every 15 months. This construction nate translates to five additional second units during the 78-month period from January 2008 through mid-year 2014. Through pnognsrn efforts, the City will facilitate the development of the additional four second units that are needed to accommodate the moderate-income housing need. Second units are allowed in all RS and RM zones. Therm are enough RS and RM sites to facilitate the development of the additional nine moderate-income second units during the January 1. 2OO8through June 3O, 2Oi4planning period. There are adequate sites to accommodate the moderate-income housing need. 31 Lower Income Housing yJee(± Twenty-six housing units iothe City's share ofthe regional housing need. Twenty affordable family apartment housing units are under construction at Crestmont College. In addition,the following site can accommodate a portion of this need: RDA CreetMUQaProperty—30 4e 60 22 to 40 housing units The City's Redevelopment Agency owns this site, which is zoned for senior housing. Notwithstanding, however, the project will include several units that will be available to caretakers and other workers at the facilitv that will not be age- restricted. The Agency has transmitted an RFQ to several qualified non-profit, affordable housing developers. The development of this site will e000rnnnodato the RHNA need for extremely|ovv. very low and low-income housing units. In September 2007, the City Council directed staff to ms|aaoa an RFCl to affordable housing developers to move forward in the development of the RDA-owned parcel. The RFCl was transmitted to nonprofit housing developers on January 24, 2008. Five developers (for-profit and non-profit) submitted responses to that RFQ in late FebruaEM. Staff and Tierra West Advisors have evaluated the resf2onses and have determined that the top three develoi2ers submit formal proposals for the develol2ment of the site. These top three developers will then be interviewed by a Panel composed of Cijy Staff, Cfty Attorney, Tierra West Advisors Staff, and the Council ad hoc subcommittee members for the Crestridge property. It is anticil2ated that interviews will be conducted in June 2008 and a recommendation for developer selection would be presented to the Board/Cijy Council in July 2008. Additional (ovx income housing unite may be produced as part ofthe Cnemthd e Senior Condo Project (10 |ovwincome units) and the HighridgeCondo Project (3inclueionary low income units). If approved, the housing capacity of these sites will be included in the City's Final Housing Element. B Gr-4-4, fN11gag= El- D-7 TECHNICAL APPENDIX O INVENTORY OF HOUSING RESOURCES Neither of there sil-es will have final develepmeRt appi:evals wheR thp , C. ENVIRONMENTAL CONDITION I. Guidelines Section 65583.2 (b)(4)states that the inventory of sites shall include: A general description of any environmental constraints to the development of housing within the jurisdiction, the documentation of which has been made available to the jurisdiction. This information need not be identified on a site-specific basis. [emphasis added] HC® indicates that: The element should include a general description of any constraints to the development of residential projects. Examples of such environmental constraints may include hillside development, flood zones, wetlands, fault lines, contamination, and contracts such as Williamson Act land or easements. [emphasis added] 2. Analysis Rancho Palos Verdes has special geologic conditions, because it is situated on a unique and complicated geologic structure known as the Palos Verdes Peninsula. The Peninsula is a rugged area that is underlain chiefly by folded sedimentary rocks. Weak layers exist within these bedded rocks, and many ground failures (landslides) have taken place on the Peninsula over geologic time. These failures range from the currently active Portuguese Bend Landslide to very old landslides that have horizontal depths of several thousands of feet. In the interest of public safety, proposals to develop residential units over these landslides must be critically evaluated on a site-by-site basis. Besides landslides, the frequency and location of steep slopes have traditionally constrained development on the Peninsula. Within Rancho Palos Verdes,approximately 40 to 50% of all land has slopes equal to or greater than 25%. Because of the complex nature of the City's geology and the existing and potential concerns about slope stability, development in Rancho Palos Verdes is closely managed. Of special interest to the City is the coastline. When exposed to wave action and surface runoff, sea cliff retreat occurs on an order of magnitude of six inches per year. In fact, the present topography of the coastal region of the City is reflective of this interaction between geomorphic processes and geologic materials underlying the landscape. D-8