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PC RES 2014-006 P.C. RESOLUTION NO. 2014-06 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF RANCHO PALOS VERDES RECOMMENDING THAT THE CITY COUNCIL CERTIFY A NEGATIVE DECLARATION AND ADOPT THE FINAL HOUSING ELEMENT OF THE GENERAL PLAN. WHEREAS,the City of Rancho Palos Verdes initiated a General Plan Amendment in 2013 in order to update the Housing Element of the City's General Plan, as required by State law-, and', WHEREAS, on November 20, 2012, the City Council adopted C.C. Resolution No, 2012-88, authorized the hiring of Castafieda 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-, and, WHEREAS, on August 27, 2013, the Planning Commission held a duly noticed public hearing/workshop to hear public testimony, review and comment on the Preliminary Draft Housing Element. The Planning Commission provided Staff with direction to make minor modifications and forward the document to the City Council for review and comment-, and, WHEREAS, on September 17, 2013, the City Council held a duly noticed public hearing/workshop to hear public testimony, review and comment on the Preliminary Draft Housing Element- The City Council directed Staff to make minor modifications and forward the revised Preliminary Draft Housing Element to the California Department of Housing and Community Development (HCD) for review; and, WHEREAS, on October 10, 2013, the Preliminary Draft Housing Element was transmitted to HCD for review and comment; and, WHEREAS, the HCD provided comments on the Preliminary Draft Housing Element in a telephone call with Staff on November 27, 2013; and, WHEREAS, the revisions addressing the HCD's comments were prepared by Staff and forwarded back to HCD for review; and, WHEREAS, on December 9, 2013, HCD sent a letter to the City informing that the revisions adequately addressed the statutory requirements of State housing element law. As a result, the Housing Element will comply with Article 10.6 of the Government Code once adopted by the City Council and submitted back to HCD; 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 the General Plan Amendment for the updated Housing Element would result in a significant adverse effect on the environment. The City's General Plan Housing Element will not result in or create any significant impacts to Aesthetics,Agriculture Resources,Air Quality, Biological Resources, Cultural Resources, Geology/Soils, Greenhouse Gas Emissions, Hazards/Hazardous Materials, Hydrology/Water Quality, Land Use/Planning, Mineral Resources, Noise, Population/Housing, Public Services, Recreation, Transportation/Traffic, or Utilities/Service Systems. Accordingly, a Negative Declaration was prepared and notice of that fact was given in the manner required by law; and, WHEREAS, the Initial Study was prepared and distributed for circulation and review from December 19, 2.013 through January 21, 2014; 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 January 28, 2014, 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 update to the City's General Plan Housing Element is necessary to comply with State law and is consistent with the General Plan, Section 2: The proposed project is an amendment to the Rancho Palos Verdes General Plan Housing Element in accordance with State Law requirements. The proposed amendment will not create or result in any significant impacts to the General Plan, Zoning Code, nor be in conflict with any applicable environmental plans or policies, be incompatible with existing land uses, affect agricultural resources, or disrupt the physical arrangement of the established community. Therefore, there will be no significant land use or planning impacts associated with this project. Section 3: The proposed amendment will consider updated population,employment and housing statistics. However, there will be no significant impacts to the regional or local population projections, nor induce substantial growth in the City, nor displace existing housing (especially affordable housing) as the proposed project's quantified objectives only provide for the construction of 31 infill units, all of which are consistent with the estimated growth of the City as identified in the General Plan. Section 4: The proposed project does not include any physical modifications or alterations of the existing land or structures. Any physical modifications or alterations to existing land and/or structures as a result of the project objectives will be addressed through separate environmental analysis consistent with CEQA. As such, there will be no significant exposure to Aesthetics, Agriculture Resources, Air Quality, Biological Resources, Cultural Resources, Geology/Soils, Greenhouse Gas Emissions, Hazards/Hazardous Materials, Hydrology/Water Quality, Land Use/Planning, Mineral Resources, Noise, Population/Housing, Public Services, Recreation, Transportation/Traffic,or Utilities/Service Systems, as a result of the proposed project. Further, for this reason, the proposed project does not have impacts that are individually limited but cumulatively considerable, nor have environmental effects that would cause substantial adverse effects on human beings, directly or indirectly. Section 5: For reasons discussed in the Initial Study, which is incorporated herein by reference, the project would not have any potential to achieve short-term, to the disadvantage of long-term, environmental goals, nor would the project have impacts which are individually limited, but cumulatively considerable, P.C. Resolution No. 2014-06 Page 2 of 3 Section 6: The Planning Commission finds that the Final Housing Element,which includes all revisions[othe Draft Housing Element that was originally submitted to the California Department of Housing and Community Development on October 10, 2013, adequately responds to the concerns addressed bythe California Department ofHousing and Community Development Section : For the foregoing reasons and based on its independent review and evaluation of the information and findings contained in the Initial Study, Staff Reports, minutes, and records ofthe proceedings, the Planning Commission has determined thattheprojectvvi8| not result inasignificant adverse impact onthe environment. Therefore, the Planning Commission hereby recommends thatthe City Council certifythe Negative Declaration/]nitial Study(Attached ExhibitA) and approve the Final Housing Element(Attached Exhibit 13), which includes revisions requested by HCD, in order to further encourage the provision of housing in a manner which adequately serves the needs of all present and future community residents in compliance with State law. PASSED, APPROVED, AND ADOPTED this 2Omday ofJanuary 3014. bythe following vot*� AYEGiConmu±aoionero Gerstner, Nelson, Tetreaolt, Tomblin, Vice Chairman Leon NOES: Non* RECUSALS: None ABSTENTIONS: Nona ABSENT: Commissioner Lewis, Chairman Euen6iaez r=� DaveErnenhiaer Chairman Comm nity - - - - Director; and, Secreta fthe Pla7ningCommission P.C. Resolution No. 2014-06 Page 3 of 3 Exhibit A (Initial Study — Negative Declaration) CITY t`'�;11'aJ OF 401 RANCHOPALOS VERDES ENVIRONMENTAL CHECKLIST FORM 1. Project title: General Plan Housing Element Update (Planning Period 2013-2021) 2. Lead agency name and address: City of Rancho Palos Verdes Community Development Department 30940 Hawthorne Boulevard Rancho Palos Verdes, CA 90275 3. Contact person and phone number: So Kim, Associate Planner City of Rancho Palos Verdes (310) 544-5228 4. Project location: City of Rancho Palos Verdes, County of Los Angeles 5. Project sponsor's name and addresses: City of Rancho Palos Verdes 30940 Hawthorne Blvd. Rancho Palos Verdes, CA 90275 6. General plan designation: Not applicable as project is Citywide and not site specific. 7. Zoning: Not applicable as project is Citywide and not site specific. However, a portion of the City is within the Coastal Zone and governed under a Coastal Specific Plan. 8. Description of project: The Government Code for the State of California (§65580-65589.8) requires that every city prepare and adopt a Housing Element to be included as part of the City's General Plan. The Housing Element must include six major components: 1. An assessment of the community's housing needs; 2. An inventory of sites that can accommodate the need for new housing; 3. An analysis of housing market and governmental constraints that impede public and private sector efforts to meet the needs; 4. A progress report describing actions taken to implement the 2013-2021 Housing Element; 5. A statement of goals, quantified objectives and policies relative to the construction, rehabilitation, conservation and preservation of housing; 6. An implementation program which sets forth a schedule of actions which the City is undertaking or intends to undertake to implement the policies and achieve the stated goals and objectives. Environmental Checklist Form/initial Study Housing Element Update Additionally, the Government Code requires that every city periodically amend their Housing Element. For all cities and counties within the regional jurisdiction of the Southern California Association of Governments, the Government Code requires that the Housing Element be revised for the 2013-2021 planning period. The Rancho Palos Verdes Planning Commission reviewed the Preliminary Draft Housing Element in a Public Hearing/V1/orkshop held on August 27, 2013. The Rancho Palos Verdes City Council also reviewed the Preliminary Draft Housing Element in a Public HearingMorkshop on September 17, 2013. The document was forwarded as a Draft Housing Element to the California Department of Housing and Community Development(HCD)for their 60-day review on October 10, 2013. On November 27, 2013, HCD requested modifications which have been incorporated into a revised Draft Housing Element that will be presented to the Planning Commission on January 28, 2014 and City Council on February 4, 2014 for final adoption, including the certification of a Negative Declaration. The revised Draft Housing Element can be viewed on the City's website through the following link: http://www.iDalosverdes.com/rpv/planning/planninq-zoning/2013-housing-element- update.cfm 9. Surrounding land uses and setting: Not applicable as project is Citywide and not site specific. 10. Other public agencies whose approval is required: The California Department of Housing and Community Development(HCD)administers the state housing law, including the review of local housing elements. Page 2 Environmental Checklist Form/Initial Study Housing Element Update ENVIRONMENTAL FACTORS POTENTIALLY AFFECTED: The environmental factors checked below would be potentially affected by this project, involving at least one impact that is a "Potentially Significant Impact" as indicted by the checklist on the following pages. [� Aesthetics 0 Agriculture and Forestry Resources 0 Air Quality Biological Resources [—] Cultural Resources Geology/Soils 0 Greenhouse Gas Emissions 0 Hazards& Hazardous Materials 0 Hydrology/Water Quality 0 Land Use/Planning 0 Mineral Resources Noise Population/Housing F—] Public Services Recreation = Transportation /Traffic Utilities/Service Systems Mandatory Findings of Significance DETERMINATION: On the basis of this initial evaluation: 0 I find that the project COULD NOT have a significant effect on the environment, and a NEGATIVE DECLARATION will be prepared. 0 1 find that although the proposed project could have a significant effect on the environment,there will not be a significant effect in this case because the mitigation measures described on an attached sheet have been added to the project. A MITIGATED NEGATIVE DECLARATION will be prepared_ I find that the proposed project MAY have a significant effect on the environment,and an ENVIRONMENTAL IMPACT REPORT is required. F7 I find that the proposed project MAY have a significant effect(s)on the environment,but at least one effect 1) has been adequately analyzed in an earlier document pursuant to applicable legal standards,and 2)has been addressed by mitigation measures based on earlier analysis as described on attached sheets,if the effect is a "potentially significant impact"or" potentially significant unless mitigated". An ENVIRONMENTAL IMPACT REPORT is required but must analyze only the effects that remain to be addressed. 0 I find that although the proposed project could have a significant effect on the environment,there WILL NOT be a significant effect in this case because all potentially significant effect(a)have been analyzed adequately in an earlier EIR pursuant to applicable standards, and (b) have been avoided or mitigated pursuant to that earlier EIR, including revisions or mitigation measures that are imposed on the proposed project Signature: Date: j1 11' —I3 Printed Name: So Kim,Associate Planner For: City of Rancho Palos Verdes Page 3 Environmental Checklist Formlinitial Study Housing Element Update EVALUATION OF ENVIRONMENTAL IMPACTS: Issues and Supporting Information Sources Potentially Potentially Less Than No Sources Significant Significant Significant Impact Impacts with Impact Mitigation Incorporated I. AESTHETICS. Would the project: a) Have a substantial effect on a scenic 1 X vista? b) Substantially damage scenic resources, including, but not limited to, trees, rock 1 X outcroppings, and historical buildings, within a state scenic highway? c) Substantially degrade the existing visual character or quality of the site and its 1 X surroundings? d) Create a new source of substantial light or glare, which would adversely affect 1 X day or nighttime views in the area? Comments: a-c)As discussed in the project description above,the proposed project is an amendment to the Rancho Palos Verdes General Plan. Specifically, it amends the General Plan Housing Element as required by State Law. Although the proposed project does not include any physical modifications or alterations of existing land or structures; one of the objectives includes the provision of 31 new infill units. Prior to any approval of new units, the City's neighborhood compatibility and view analysis will be required to ensure visual compatibility with the neighborhood character and no significant view impacts will result to neighboring properties. Therefore,there will be no impact. d) All new outdoor lighting for the future 31 new infill units will be subject to review and compliance with the City's Municipal Code Section 17.56.030 (Outdoor lighting for residential uses) and 17.56.040 (Outdoor lighting for nonresidential uses) to ensure no adverse effects to neighboring properties. Therefore,there will be no impact. Il. AGRICULTURE RESOURCES: Would the project: a) Convert Prime Farmland, Unique Farmland, or Farmland of Statewide Importance (Farmland), as shown on the maps prepared pursuant to the 2 X Farmland Mapping and Monitoring Program of the California Resource Agency, to non-agricultural use? b) Conflict with existing zoning for agricultural use, or a Williamson Act 2 X contract? c) Conflict with existing zoning for, or cause rezoning of, forest land, 2 X timberland, or timberland zoned Timberland Production? d) Result in the loss of forest land or conversion of forest land to non-forest 2 X use? e) Involve other changes in the existing environment which,due to their location or nature, could result in conversion of 2 X Farmland, to non-agricultural use or conversion of forest land to non-forest use? Page 4 Environmental Checklist Formlinitial Study Housing Element Update Issues and Supporting Information Sources Potentially Potentially Less Than No Sources Significant Significant Significant Impact Impacts with Impact Mitigation Incorporated Comments: a-e) The proposed development area for the 31 new infill units are not zoned for Agricultural that may lead to the decrease of agricultural resources. Additionally, agricultural use is by-right on an area one acre or less for noncommercial purposes in all properties zoned Single-Family Residential. Therefore, there will be no impact. III. AIR QUALITY. Would the project: a) Conflict with or obstruct the implementation of any applicable air 4 X quality plan? b) Violate any air quality standard or contribute to an existing or projected air 4 X quality violation? c) Result in a cumulatively considerable net increase of any criteria pollutant for which the project region is non- 4 X attainment under an applicable federal or state ambient air quality standard d) Expose sensitive receptors to 4 X substantial pollutant concentrations? e) Create objectionable odors affecting a 4 X substantial number of people? Comments: a-e)As discussed in the project description above,the proposed project is an amendment to the Rancho Palos Verdes General Plan Housing Element as required by State Law. Although the proposed project does not include any physical modifications or alterations of existing land or structures; one of the objectives includes the provision of 31 new infill units. Construction of 31 new infill units will result in some odors and dust during the temporary period of construction. However,priorto any approval for construction a separate CEQA analysis will be completed and standard construction site best management practices will apply. Additionally, given the minimal number of 31 units relative to the average number of construction activity in a year, there will be no impacts to the air quality. IV. BIOLOGICAL RESOURCES. Would the project: a) Have a substantial adverse effect,either directly or through habitat modifications, on any species identified as a candidate, sensitive, or special status 6 X species in local or regional plans, policies, or regulations, or by the California Department offish and Game or US Fish and Wildlife Service? b) Have a substantial adverse effect on any riparian habitat or other sensitive natural community identified in local or regional plans,policies,and regulations X or by the California Department of Fish and Game or US Fish and Wildlife Service? c) Have a substantial adverse effect on federally protected wetlands,as defined by Section 404 of the Clean Water Act, through direct removal, filling, X hydrological interruption, or other means? d) Interfere substantially with the movement of any native resident or 6 X migratory fish or wildlife species or with Page 5 Environmental Checklist Form/Initial Study Housing Element Update Issues and Supporting Information Sources Potentially Potentially Less Than No Sources Significant Significant Significant Impact Impacts with Impact Mitigation Incorporated established native resident or migratory wildlife corridors, or impede the use of native wildlife nursery sites? e) Conflict with any local polices or ordinances protecting biological 6, 11 X resources, such as tree preservation policy or ordinance? f) Conflict with the provisions of an adopted Habitat Conservation Plan or Natural Community Conservation Plan, 6 X or other approved local, regional, or state habitat conservation plan? Comments: a-f)As discussed in the project description above,the proposed project is an amendment to the Rancho Palos Verdes General Plan Housing Element as required by State Law. Although the proposed project does not include any physical modifications or alterations of existing land or structures; one of the objectives includes the provision of 31 new infill units. The City's Natural Community Conservation Plan(NCCP)does not identify any sensitive areas/species within the proposed infill areas. However, for those properties located adjacent to an NCCP area, the NCCP plan includes standards and guidelines and a biology report will be required as part of project review to ensure no impact to existing habitat, natural/wildlife species or fish. Therefore,there will be no impacts. V. CULTURAL RESOURCES. Would the project: a) Cause a substantial adverse change in the significance of a historical resource 8 X as defined in§15064.5? b) Cause a substantial adverse change in the significance of an archaeological 7 X resource pursuant to§15064.5? c) Directly or indirectly destroy a unique paleontological resource or site or 7 X unique geological feature? d) Disturbed any human remains,including those interred outside of formal 7 X cemeteries? Comments: a-d) The proposed amendment includes an objective for the provision of 31 new units. Should a potential area for development be identified as cultural resource, all applicable site-specific analysis to address any potential impacts would be conducted under the specific environmental review for the project. Therefore there will be no impacts. VI. GEOLOGY AND SOILS. Would the project: a) Expose people or structure to potentially substantial adverse effects, including the risk of loss, injury, or death involving: i) Rupture of a known earthquake fault, as delineated on the most recent Alquist-Priolo Earthquake Fault Zoning Map issued by the X State Geologist for the area or based on other substantial evidence of a known fault? ii) Strong seismic ground shaking? X iii) Seismic-related ground failure, 3 X including liquefaction? iv) Landslides? 2 X Page 6 Environmental Checklist Form/Initial Study Housing Element Update Issues and Supporting Information Sources Potentially Potentially Less Than No Sources Significant Significant Significant Impact Impacts with Impact Mitigation Incorporated b) Result in substantial soil erosion or the loss of topsoil? X c) Be located on a geological unit or soil that is unstable, or that would become unstable as a result of the project, and 2 X potentially result in on or off site landslide,lateral spreading,subsidence, liquefaction or collapse? d) Be located on expansive soil,as defined in the Uniform Building Code, thus X creating substantial risks to life or property? e) Have soils incapable or adequately supporting the use of septic tanks or alternative wastewater disposal X systems, where sewers are not available for the disposal of wastewater? Comments: a) According to the State of California Department of Conservation website, the City of Rancho Palos Verdes is not one of the cities identified as being affected by Alquist-Priolo Earthquake Fault Zones as of May 1,1999. The Seismic Zone Map released in March 25, 1999 show earthquake induced landslides and liquefaction zones in portions of the City of Rancho Palos Verdes. However, it should be noted that applicable site-specific environmental geological analysis would be reviewed prior to any construction on any of the infill areas that will meet the Housing Element's 31 unit objective. Therefore,there will be no impact. b)The proposed amendment may result in increased housing units. The construction of new housing may cause run-off due to the increase of impervious surfaces. However,construction involving new residences and structures are required to obtain City approval of a drainage plan. Additionally, applicable site-specific environmental analysis would be reviewed prior to any construction on any of the infill areas that will meet the Housing Element's 31 unit objective. Therefore,there will be no impact. c-e)All new construction is subject to the City Geologist's review and approval of applicable site specific soils/geology reports. Additionally, all construction is required to adhere to the Uniform Building Code requirements to prevent potential adverse impacts. Furthermore,applicable site-specific environmental analysis would be reviewed prior to any construction on any of the infill areas that will meet the Housing Element's 31 unit objective. As such,there will be no impact. VII. GREENHOUSE GAS EMISSIONS. Would the project: a) Generate greenhouse gas emissions, either directly or indirectly, that may X have a significant impact on the environment? b) Conflict with an applicable plan, policy or regulation adopted for the purpose of reducing the emissions of greenhouse X gases? Comments: a-b)As discussed in the project description above,the proposed project is an amendment to the General Plan Housing Element as required by State Law. Although the proposed project does not include any physical modifications or alterations of existing land or structures; one of the objectives includes the provision of 31 future new infill units on properties already designated in the General Plan and Zoning Code as buildable. Applicable site-specific environmental analysis would be reviewed prior to any construction on said 31 unit infill lot areas. Therefore,there will be no impact. VHI. HAZARDS AND HAZARDOUS MATERIALS. Would the project: a) Create a significant hazard to the public X Page 7 Environmental Checklist FormlInitial Study Housing Element Update Issues and Supporting Information Sources Potentially Potentially Less Than No Sources Significant Significant Significant Impact Impacts with Impact Mitigation Incorporated or the environment through the routine transport, use, or disposal of hazardous material? b) Create a significant hazard to the public or the environment through reasonably foreseeable upset and accident X conditions involving the release of hazardous materials into the environment? c) Emit hazardous emissions or handle hazardous or acutely hazardous materials, substances, or waste within X one-quarter mile of an existing or proposed school? d) Be located on a site, which is included on a list of hazardous materials sites complied pursuant to Government Code Section 65962.5 and, as a result,would 9 X create a significant hazard to the public or the environment? e) For a project located within an airport land use plan or,where such a plan has not been adopted, within two miles of a public airport or public use airport, X would the project result in a safety hazard for people residing or working in the project area? f) For a project within the vicinity of a private airstrip, would the project result X in a safety hazard for people residing or working in the project area? g) Impair implementation of, or physically interfere with, an adopted emergency X response plan or emergency evacuation plan? h) Expose people or structures to a significant risk of loss, injury, or death involving wildland fires, including where 5 X wildlands are adjacent to urbanized areas or where residences are intermixed with wildlands? Comments: a-c)All applicable site-specific environmental analysis would be reviewed priorto any construction of any ofthe31 new units identified as the Housing Element's objective. This analysis will identify potential adverse impacts or conditions. If hazardous material is found during construction of these future 31 infill units, appropriate remediation and mitigation methods would be incorporated into the specific projects to prevent any hazardous condition to the public and the environment. Therefore,there is no impact. d)The only location identified on the Cal/EPA compiled lists of Hazardous Waste and Substances Sties is the City Hall property located at 30940 Hawthorne Blvd. None of the proposed 31 infill units will be located on City Hall property. Therefore, there is no impact. e,f)There are no airports located within or in close proximity of the City of Rancho Palos Verdes. Therefore,there is no impact. The increase in housing units resulting from the proposed amendment is sitespecific and will not be substantial Page 8 Environmental Checklist Form/Initial Study Housing Element Update Issues and Supporting Information Sources Potentially Potentially Less Than No Sources Significant Significant Significant Impact Impacts with Impact Mitigation Incorporated enough to interfere with any adopted emergency response or evacuation plan. Therefore,there is no impact. h) Given the nominal housing unit increase resulting from the proposed amendment,there would not be a significant increase in the exposure to people or structures to any adverse risks. Therefore,there is no impact. IX. HYDROLOGY AND WATER QUALITY. Would the project: a) Violate any water quality standard or X wastewater discharge requirements? b) Substantially deplete groundwater supplies or interfere substantially with groundwater recharge such that there X would be a net deficit in aquifer volume or a lowering of the local groundwater? c) Substantially alter the existing drainage pattern of the site or areas, including through the alteration of the course of a X stream or river, in a manner, which would result in substantial erosion or siltation on-or off-site? d) Substantially alter the existing drainage pattern of the site or areas including through the alteration of the course of a stream or river,or substantially increase X the rate or amount of surface runoff in a manner that would result in flooding on- or off-site? e) Create or contribute runoff water which would exceed the capacity of existing or planned storm water drainage systems X or provide substantial additional sources of polluted runoff? f) Otherwise substantially degrade water quality? X g) Place housing within a 100-year flood hazard area, as mapped on a Federal Flood Hazard Boundary or Flood X Insurance Rate map or other flood hazard delineation map? h) Place within a 100-year flood hazard area, structures which would impede or 10 redirect flood flows? X i) Expose people or structures to a significant risk of loss, injury, or death involving flooding,including flooding as X a result of the failure of a levee or dam? j) Inundation by seiche, tsunami, or mudflow? X Comments: a,b,e,f,k,1)The water needs of the City of Rancho Palos Verdes are served by the California Water Service Company (CWSC),which operates within the regulations and standards of the Public Utilities Commission. The sole function of CWSC is to supply the City with sufficient fire safety requirements and adequate amounts of potable drinking water at a pressure consistent with accepted standards. While the proposed amendment may result in an increase in housing units, the properties associated with the 31 infill lots are already developable through the General Plan and Zoning Code. As such,there is an adequate water supply to meet the need of the new housing units. Therefore,there is no impact with this proposed amendment. Page 9 Environmental Checklist Form/Initial Study Housing Element Update Issues and Supporting Information Sources Potentially Potentially Less Than No Sources Significant Significant Significant Impact Impacts with Impact Mitigation Incorporated There are three large waste water discharge points, all located within 20 miles of the Rancho Palos Verdes coast. Management of land use practices within the City, such as drainage courses aid in reducing waste water discharges so that the ocean's ability to assimilate wastes would not be exceeded. It should be noted that the potential future 31 units resulting from the objectives within the proposed amendment will have to provide a drainage plan to be reviewed by the Building and Safety Department with consistency with current standards and may be subject to National Pollutant Discharge Elimination System (NPDES) review, including Best Management Practices prior to development activity. Therefore,there is no impact. c, d)According to the USGS map, there are blue-line streams in some areas within the City of Rancho Palos Verdes. There is no construction allowed over blue-line stream areas and for projects near said areas. A site-specific environmental analysis will be required for review to address potential impacts when and if the potential 31 new units are constructed in the future. Therefore,there is no impact. g,h) The properties within the City of Rancho Palos Verdes are exempted from Flood Hazard Maps due to its topographic nature. This action was initiated and accomplished by the County of Los Angeles prior to 1984 and this amendment will not affect the exemption. Therefore,there is no impact. i,j) There are no dams and levees in the City of Rancho Palos Verdes. Given that there are no rivers, there is no potential exposure to seiche. Additionally, all available buildable areas are located significantly above sea level, preventing exposure to tsunamis. As evidenced in the City's zoning map,areas with potential susceptibility to mudflow, such as Open Space Hazard zones do not permit new residential construction. As such, there is no impact, X. LAND USE AND PLANNING. Would the project: a) Physically divide an established community? 1, 2 X b) Conflict with any applicable land use plan, policy, or regulation of an agency with jurisdiction over the project (including, but not limited to the general 1, 2 X plan,specific plan,local coastal plan,or zoning ordinance) adopted for the purpose of avoiding or mitigating an environmental effect? c) Conflict with any applicable habitat conservation plan or natural community 1,2, 6 X conservation plan? Comments: a-b) The proposed amendment includes an objective that identifies a potential for 31 new infill housing units. Depending on the location of the new construction, compliance with the City's General Plan, Development Code,local Coastal Plan, Specific Plans will be reviewed to ensure compatibility with the existing neighborhoods and land uses. Therefore,there is no impact. c)The City's Natural Community Conservation Plan does not identify any sensitive areas/species within the proposed infill areas of the potential 31 units. However,for those properties located adjacent to an NCCP area,the NCCP plan includes standards and guidelines and a biology report will be required as part of project review to ensure no impact to existing habitat, natural/wildlife species or fish. Therefore, there will be no impacts. XI. MINERAL RESOURCES. Would the project: a) Result in the loss of availability of a known mineral resource that would be 1 X of future value to the region and the residents of the State? b) Result in the loss of availability of a locally important mineral resource 1 X recovery site delineated on a local general plan,specific plan,or other land Page 10 Environmental Checklist Form/Initial Study Housing Element Update Issues and Supporting Information Sources Potentially Potentially Less Than No Sources Significant Significant Significant Impact Impacts with Impact Mitigation Incorporated use plan? Comments:According to the Natural Environment Element of the General Plan, areas in Rancho Palos Verdes were quarried for basalt,diatomaceous earth,and Palos Verdes stone between 1948 and 1958. The only valuable material known to exist in the City which has not at one time or another been commercially extracted is the asphalt which exists at the main branches of Agua Armaga Canyon. The proposed infill areas are not near Agua Armaga Canyon and therefore there will be no impacts to mineral resources as a result of the proposed amendment. Further,there are no known mineral resources located within the potential future 31 unit sites. As such, there is no impact. XII.NOISE. Would the project result in: a) Exposure of persons to or generation of noise levels in excess of standards established in the local general plan or 2 X noise ordinance, or applicable standards of other agencies? b) Exposure of persons to or generation of excessive groundborne vibration or X groundborne noise levels? c) A substantial permanent increase in ambient noise levels in the project X vicinity above levels existing without the project? d) A substantial temporary or periodic increase in ambient noise levels in the X project vicinity above levels existing without the project? e) For a project located within an airport land use plan or,where such a plan has not been adopted,within two miles of a public airport or a public use airport, X would the project expose people residing or working in the project area to excessive noise levels? f) For a project within the vicinity of a private airstrip,would the project expose X people residing orworking in the project area to excessive noise levels? Comments: a-d)There may be temporary increases in noise levels during future construction of the Housing Element's objective 31 infill units if and when they are redeveloped in the future. However,the noise levels and groundborne vibration as a result of construction vehicles will only be for the duration of the construction itself. Any other structures that may generate noise will require compliance with the City's allowed noise levels. Therefore, there will be no impacts. e-f) There are no airports and private airstrips in close vicinity of the City. Therefore, there will be no impacts. XIII. POPULATION AND HOUSING. Would the project: a) Induce substantial population growth in an area, either directly (e.g., by proposing new homes and businesses)or indirectly (e.g. through X extension of roads or other infrastructure)? b) Displace substantial numbers of existing housing, necessitating the construction X of replacement housing elsewhere? c) Displace substantial numbers of people, X Page 11 Environmental Checklist Form/initial Study Housing Element Update Issues and Supporting Information Sources Potentially Potentially Less Than No Sources Significant Significant Significant Impact Impacts with Impact Mitigation Incorporated necessitating the construction of replacement housing elsewhere? Comments: a)The 2010 Census estimates 42,323 people for the City in 2012. The City's General Plan projected 41,700 for 1975 and 49,700 to 50,700 for total capacity population of the City, Since the potential for an additional 31 infill units is a minimal increase and will remain within the total capacity population estimated for the City,there will be no impacts to population growth. b-c) No physical modification or changes are proposed to existing housing units. Therefore, there will be no impacts. XIV. PUBLIC SERVICES. Would the proposal result in: a) Substantial adverse physical impacts associated with the provisions of new or physically altered governmental facilities, the construction of which could cause significant environmental impacts, in order to maintain acceptable service ratios, response times or other performance objectives for any of the following public services: i) Fire protection? X ii) Police protection? X iii) Schools? X iv) Parks? X v) Other public facilities? X Comments: a) The minimal increase in housing units that may be caused by the proposed amendment will not necessitate a significant change to the current performance in public services. The potential housing unit increase is site specific and within infill lots that are buildable according to the existing General Plan and Zoning Code. Therefore,there will be no impacts. XV. RECREATION. Would the project: a) Increase the use of neighborhood and regional parks or other recreational facilities, such that substantial physical X deterioration of the facility would occur or be accelerated? b) Include recreational facilities or require the construction or expansion of recreational facilities,which might have X an adverse physical effect on the environment? Comments: a-b)The increase in population as a result of the Housing Element's objective of 31 new housing units may increase the use of recreational areas within the city. However,the increase in population will be very minimal,is within the scope of the existing General Plan,and will not cause a substantial adverse impact the recreational areas or facilities. It should also be noted that the City of Rancho Palos Verdes has passed an ordinance subjecting developers to a Quimby Fee which helps pays for park improvements that would apply to all applicable projects. As such,there will be no impact. XVI. TRANSPORTATION/TRAFFIC, Would the project: a) Conflict with an applicable plan, ordinance or policy establishing measures of effectiveness for the X performance of the circulation system, taking into account all modes of transportation including mass transit Page 12 Environmental Checklist Form/initial Study Housing Element Update Issues and Supporting Information Sources Potentially Potentially Less Than No Sources Significant Significant Significant Impact Impacts with Impact Mitigation Incorporated and non-motorized travel and relevant components of the circulation system, including but not limited to intersections, streets, highways and freeways, pedestrian and bicycle paths,and mass transit? b) Conflict with an applicable congestion management program, including, but not limited to level of service standards and travel demand measures, or other X standards established by the county congestion management agency for designated roads or highways? c) Result in a change in air traffic patterns, including either an increase in traffic X levels or a change in location that result in substantial safety risks? d) Substantially increase hazards due to a 2 X design feature or incompatible uses e) Result in inadequate emergency access? X f) Conflict with adopted policies, plans, or programs regarding public transit, bicycle, or pedestrian facilities, or X otherwise decrease the performance or safety of such facilities? Comments: Given that the proposed increase in population and housing as a result of the Housing Element's objective for the potential of 31 new units is relatively minor,within the projected population estimates,and located on infill lots that are buildable within the existing General Plan and Zoning Code, there will be no substantial adverse impacts to transportation and traffic levels,patterns,uses,access,etc. The housing unit increase will be site-specific and as with all construction,any proposed project resulting from the proposed amendment will be reviewed in regards to design and adequate parking capacity on-site. Additionally, applicable site-specific traffic analysis will be reviewed prior to future construction for any potential impacts. Therefore,there will be no impacts. XVII. UTILITIES AND SERVICE SYSTEMS. Would the project: a) Exceed wastewater treatment requirements of the applicable Regional X Water Quality Control Board? b) Require or result in the construction of new water or wastewater treatment facilities or expansion of existing X facilities,the construction of which could cause significant environmental effects? c) Require or result in the construction of new storm water drainage facilities or expansion of existing facilities, the X construction of which could cause significant environmental effects? d) Have sufficient water supplies available to serve the project from existing X entitlements and resources, or are new or expanded entitlements needed? e) Result in a determination by the wastewater treatment provider, which X serves or may serve the project, that it Page 13 Environmental Checklist Form/Initial Study Housing Element Update Issues and Supporting Information Sources Potentially Potentially Less Than No Sources Significant Significant Significant Impact Impacts with Impact Mitigation Incorporated has adequate capacity to serve the project's projected demand in addition to the provider's existing commitments? f) Be served by a landfill with sufficient permitted capacity to accommodate the X project's solid waste disposal needs? g) Comply with federal, state, and local statures and regulations related to solid X waste? Comments: a—g)The General Plan indicates that the water needs of the City of Rancho Palos Verdes are served by the California Water Service Company (CWSC), which operates within the regulations and standards of the Public Utilities Commission. The sole function of CWSC is to supply the City with sufficient fire safety requirements and adequate amounts of potable drinking water at a pressure consistent with accepted standards. There are three large waste water discharge points, all located within 20 miles of the Rancho Palos Verdes coast. Management of land use practices within the City,such as drainage courses aid in reducing waste water discharges so that the ocean's ability to assimilate wastes would not be exceeded. It should be noted that potential future projects resulting from the proposed amendment's objectives will have to provide a drainage plan to be reviewed by the Building and Safety Department with consistency with the current standards and may be subject to National Pollutant Discharge Elimination System (NPDES) review, including Best Management Practices. It should be noted that the housing unit increase caused by the proposed amendment is site specific and therefore would be too minimal to substantially affect utilities and other service systems thatwould result in any change to existing water/wastewater/drainage facilities,wastewater treatment requirements,water supply,wastewater treatment demand, waste disposal needs or compliance with any statures/regulations related to solid waste. Further,all of the potential future 31 units are located on infill lots that are already developable per the General Plan and Zoning Code. Therefore, there will be no impact. XVIII. MANDATORY FINDINGS OF SIGNIFICANCE. a) Does the project have the potential to degrade the quality of the environment, substantially reduce the habitat of a fish or wildlife species, cause a fish or wildlife population to drop below self- sustaining levels,threaten to eliminate a X plant or animal community, reduce the number or restrict the range of a rare or endangered plant or animal or eliminate important examples of the major periods of California history or prehistory? Comments: The potential future housing unit increase resulting from the proposed amendment will be subject to site specific analysis and regulations set forth in the Municipal Code to maintain or add to the existing quality of environment and prevent any adverse impacts. Proposed construction will also be subject to NCCP regulations, if applicable, to prevent any undesirable effects to existing wildlife or sensitive species. Therefore,there will be no impact. b) Does the project have impacts that are individually limited, but cumulatively X considerable? Comments:Given that the potential minimal housing unit increase caused bythe proposed amendmentwould be site- specific, it will not cause a substantial enough impact to result in a significant change individually or cumulatively considerable. Regardless, a site specific environmental analysis will be required to identify and prevent any potential adverse impacts. Therefore, there will be no impact. c) Does the project have environmental effects, which will cause substantial X adverse effects on human beings,either directly or indirectly? Page 14 Environmental Checklist Form/initial Study Housing Element Update Issues and Supporting Information Sources Potentially Potentially Less Than No Sources Significant Significant Significant Impact Impacts with Impact Mitigation Incorporated Comments: Since the potential housing unit increase resulting from the proposed amendment would be site specific, the proposed amendment will not result in a change which will have an adverse substantial effect on human beings, directly or indirectly. Additionally,the regulations in the Municipal Code would prevent any potential undesirable impacts and any potential of adverse impact identified in site specific analysis would be mitigated prior to any construction. Therefore,there will be no impact. XIX. EARLIER ANALYSES. Earlier analysis may be used where, pursuant to the tiering, program EIR,or other CEQA process,one or more effects have been adequately analyzed in an earlier EIR or Negative Declaration. Section 15063(c)(3)(D). In this case a discussion should identify the following items: a) Earlier analysis used. Identify earlier analyses and state where they are available for review. Comments: 1) A Negative Declaration for the 2010 Housing Element Amendment was certified by the City Council on June 17, 2008. The certified Negative Declaration and HCD's certified 2010 Housing Element is available for review in the Planning Division at the City of Rancho Palos Verdes. 2) An Environmental Impact Report for the construction of 60-unit residential community known as the Crestridge Senior Housing Project was certified by the City Council on May 21,2013. This EIR addresses a portion of the potential future development of 31 units as identified in the Housing Element objective. 3) A Mitigated Negative Declaration for the Vesting Tentative Tract Map No. 68796 for the construction of a 28-unit residential condominium project known as the Highridge Condominiums was certified by the City Council on October 21, 2008. This MND addresses a portion of the potential future development of 31 units as identified in the Housing Element objective. 4) An Environmental Impact Report for the Vesting Tentative Tract Map Nos. 50666 and 50667 for 83-lot residential tracts was certified by the City Council on June 1, 1992. This EIR addresses a portion of the potential future development of 31 units as identified in the Housing Element objective. b) Impacts adequately addressed. Identify which effects from the above checklist were within the scope of and adequately analyzed in an earlier documents pursuant to applicable legal standards,and state whether such effects were addressed by mitigation measures based on the earlier analysis. Comments: Each of the earlier documents identified above included a similar checklist. In regards to the specific project documents(items 2-4), impacts were identified with associated mitigation measures. c) Mitigation measures. For effects that are "Less than Significant with Mitigation Incorporated," describe the mitigation measures, which were incorporated or refined from the earlier document and the extent to which they address site-specific conditions of the project. Comments: No effects were identified as"Less than Significant with Mitigation Incorporated"in this analysis. XX. SOURCE REFERENCES 1 City of Rancho Palos Verdes, Rancho Palos Verdes General Plan,and associated Environmental Impact Report. Rancho Palos Verdes, California: as amended through August 2001. 2 City of Rancho Palos Verdes, Development Code and Zoning Mar) (Municipal Code Titles 16 and 17). Rancho Palos Verdes, California: as amended through August 2004. 3 State of California, Division of Mines and Geology, Official Maps of Seismic Hazard Zones. Sacramento, California: March 1999. 4 South Coast Air Quality Management District, CEQA Air Quality Handbook. Diamond Bar, California: November 1993. 5 California Department of Forestry& Fire Protection and Los Angeles County Fire Department,Veru High Wildland Fire Hazard Severity Zones(map). Los Angeles, California: May 20,2008. 6 City of Rancho Palos Verdes,Final Natural Communities Conservation Plan(NCCP)and Preserve Design. Rancho Palos Verdes, California: July 2004. 7 City of Rancho Palos Verdes,Archaeological Resources Map. Rancho Palos Verdes,California:undated 8 Rancho de Los Palos Verdes Historical Society and Museum, Dedicated Historical Sites on the Palos Verdes Peninsula (map). Palos Verdes Estates, California: 1993. Page 15 Environmental Checklist Form/initial Study Housing Element Update 9 State of California, Department of Toxic Substance Control, Hazardous Waste and Substances Site List (Cortese List, as revised through August 22,2012. 10 Federal Emergency Management Agency (FEMA), Digital Flood Insurance Rate Map for Los Angeles County.2008. 11 City of Rancho Palos Verdes, Guidelines and Procedures for Restoration of Views Where Foliage is Involved:July 20,2010. Page 16 Exhibit B (Final Draft Housing Element) OF JLA40 CITY RANCHO PALOS 2013-2021 DRAFT HOUSING ELEMENT r J , tel -' ' C fk•_ Sent to HCD k r :t• I� it Y (October CC Approved (September PC Approved (August CITYOF JLA40 RANCHO PALOS VERDES 2013-2021 HOUSING ELEMENT INTRODUCTION City of Rancho Palos Verdes 2013-2021 Housing Element of the General Plan Section 1-Introduction Table of Contents A. Regional Setting...........................................................................................................................1-1 B. Historical Context 1-1 ------------------------------------------------------------------------------------------------------------------------- C. State Requirements and Legislative Changes..........................................................................,1-4 D. Role and Organization of the Housing Element------------------------------------------------------------------------1-6 E. Housing Element Consistency With Other General Plan Elements........................................,1-7 F. Other Statutory Requirements----------------------------------------------------------------------------------------------------1-7 1. Water and Sewer Priority-----------------------------------------------------------------------------------------------------1-7 2. Flood Hazards and Flood Management Information..........................................................,1-8 List of Charts 1-1 City of Rancho Palos Verdes Population Growth 1980 to 2013........................................1-4 A. REGIONAL SETTING The City of Rancho Palos Verdes is located in Los Angeles County, generally in the southwest area of the greater Los Angeles Metropolitan Area on the southern edge of the Palos Verdes Peninsula. The three other cities that comprise the peninsula are Rolling Hills, Rolling Hills Estates and Palos Verdes Estates. The City is approximately 13.5 square miles. The nearest freeways include Interstate 405 (San Diego Freeway), Interstate 110 (Harbor Freeway), and Interstate 710 (Long Beach Freeway). Hawthorne Boulevard and Palos Verdes Drive provide access to the City. B. HISTORICAL CONTEXT On September 7, 2013, the City of Rancho Palos Verdes, the youngest city on the Palos Verdes Peninsula, will celebrate its 40th anniversary. Each year is a milestone for all of the people who worked so hard and so long for incorporation and for all of those who have enjoyed the benefits ever since. The story of the City's fight for incorporation is indeed an interesting tale. The birth of Rancho Palos Verdes was the culmination of a series of events that occurred during the first half of the 20th Century, as well as the actual drive for incorporation, which began in earnest in the early 1960's and finally came to fruition in 1973. At the close of the 19th Century, the Palos Verdes Peninsula was uninhabited, with the exception of a few sheepherders and their flocks. The high mesas and sweeping terraces of this land were lonely and barren. There were no trees, fences, roads or structures of any kind. Then, for a brief period of time in the early 1900's, the Peninsula enjoyed prosperity as a cattle ranch and rich farming area. During this time, 2,000 head of cattle roamed the open areas. Japanese families farmed the most southern slopes with fields of beans, peas and tomatoes, while the manager of the cattle ranch farmed the dryer northern slopes. In 1913, Frank A. Vanderlip, president of the National Bank of New York, bought the 16,000-acre Palos Verdes Peninsula sight .:.= unseen from rancher Jotham Bixby. Even- though Mr. Vanderlip had never seen the Peninsula, he recognized its strategic location and potential for development. Mr. —� Vanderlip had a grand vision to develop the .: - � "Palos Verdes Project" into the "most fashionable and exclusive residential ` colony" in the nation. Abalone Cove looking east toward Portuguese Point Unfortunately, the area's remote location and lack of adequate roads initially thwarted his plans. Later, the Stock Market Crash, the Great Depression and the onset of World War II crippled the dream. However, none of these events changed the beauty and desirability of the Palos Verdes Peninsula, with its magnificent views, beautiful rolling terrain, mild climate and clean air, as an ideal place to live. Probably the greatest single event that would shape the future of Rancho Palos Verdes occurred in July 1953. By this time, Frank A. Vanderlip's eldest son, Frank Jr., was the president of the Palos Verdes Corporation, which controlled the family's remaining undeveloped acreage on the Peninsula. Since 1944, the Great Lakes Carbon Corporation had leased a 300-acre tract of land on the north side of the Peninsula for mining of diatomaceous earth. Although this mine's resources had nearly been exhausted, another rich deposit was known to exist on a 165-acre tract near the crest of the Peninsula. For two years, the Great Lakes Carbon Corporation had been unsuccessfully attempting to purchase this property from the Vanderlip family. Finally, Frank Vanderlip Jr. agreed to sell, provided that Great Lakes purchase all of the stock in the Palos Verdes Corporation. Upon completion of the transaction, Great Lakes Carbon Corporation suddenly owned 7,000 acres of prime undeveloped land, all that was left of the 16,000 acres bought from Mr. Bixby, with the exception of 500 acres retained by the Vanderlip family in the Portuguese Bend area. What happened next was not surprising. The plans for mining operations were quickly discarded and a group of well-know architects and engineers were hired to create a master plan to develop the property. The grand plan envisioned for the Palos Verdes Peninsula by Frank A. Vanderlip Sr. was to be only partially realized by the time of his death in 1937. In the nearly 25 years since he acquired the property, Mr. Vanderlip's plan had been fragmented and diluted by a variety of external forces. In response to the changing circumstances, the other three Peninsula cities of Palos Verdes Estates, Rolling Hills and Rolling Hills Estates incorporated before the largest building boom began in the late 1950 and early 1960s. Fueled by the master plan created by the Great Lakes Carbon Corporation and the burgeoning economic growth occurring in the South Bay area, the remaining unincorporated area on the Peninsula began to develop rapidly and in ever- increasing densities. The idea of a fourth city was first advanced in 1962 as an answer to controlling the unbridled development that was occurring in the unincorporated areas on the Peninsula, which remained under the control of Los Angeles County. Unfortunately, these early efforts were never able to get off the ground. In spite of protests from individually affected homeowner groups, adjacent cities and the local school district, the Los Angeles County Board of Supervisors routinely granted zone changes. In desperation, more than 40 homeowners groups joined together in 1965 to form the Peninsula Advisory Council (PAC) in the hopes that this collaboration would add weight to their arguments against the proposed zone changes. However, despite PAC's best efforts, the County continued to grant more zone changes for higher densities, with little concern for the sensitive environment. According to PAC's records, 43 times they protested to the County, and 43 times they failed. Then, in 1969, came the new County Master Plan for the Peninsula that provided for a population density far beyond what the local residents wanted. In response, a Peninsula-wide organization was formed that same year called Save Our Coastline (SOC). Unlike previous efforts, SOC was able to combine political and financial power with experienced local governments focused on achieving a common goal. However, after several unsuccessful fights against the County's Master Plan for the Peninsula, it became evident that the only way to preserve the environment and to gain control over local zoning issues was through incorporation of a fourth city. The drive for incorporation of the fourth city intensified in February 1970 when a formal application was made to the Local Agency Formation Commission (LAFCO), which was the first step in a six-step process necessary for successful incorporation. LAFCO approved the application shortly thereafter. The second step was successfully completed when signatures supporting incorporation were obtained from the owners of 43% of the assessed valuation of the land, 63% of the homeowners and 70% of the registered voters. However, further progress was blocked when landowners representing more than 51% of the assessed land value protested the incorporation. In response, SOC filed a lawsuit in Federal District Court seeking to have Section 34311 of the State Code declared unconstitutional. The so-called "one man-one vote" suit contended that a vote should not be weighted by the land's assessed value, but rather by the actual number of voters in the area. There was further litigation and many setbacks before the State Supreme Court, in September 1972, ruled 7 to 0 in Curtis vs. Board of Supervisors that landowners could not prevent voters from determining their own form of municipal government. This cleared the way for completing the final steps with LAFCO towards incorporation and permitting a cityhood election to take place. The election was finally held on August 28, 1973. An overwhelming majority of 5 to 1 voted in favor of incorporation. At the same time, the voters elected five City Council members out of a field on 24 candidates. The first City Council, consisting of Mayor Marilyn Ryan and Council members Gunther Buerk, Ken Dyda, Dave "Cisco" Ruth and Robert Ryan, all ran on similar platforms of low-density land uses, minimum taxes, and responsiveness to residents. The newly elected City Council held its first meeting on September 7, 1973 at Ridgecrest Intermediate School. The first City Hall offices were located in the former SOC offices in the Golden Cove Center at the corner of Hawthorne Boulevard and Palos Verdes Drive West. One of the first actions taken by the new City Council was to declare a building moratorium and to begin work on the preparing the City's General Plan. In 1975, City Hall was relocated to its current location at the former Army Nike missile base on Hawthorne Boulevard, just above the Golden Cove Center. Chart 1-1 shows the community's population growth from 1980 to 2013. During that 33-year period, the City's population has increased by almost 6,000 people. SECTION 1 - INTRODUCTION Chart 1-1 Population Growth 1980 to 2013 4300D 42000 42,1 4100D 41,667 41,643 41,145 4DDDD e c 39DDO 0 380D9 a 37990 36000 36,577 35000 34000 -930 1990 2000 2010 Dia C. STATE REQUIREMENTS AND LEGISLATIVE CHANGES The Housing Element is one of the seven mandatory elements of the General Plan, and it specifies ways in which the housing needs of existing and future residents can be met. The element became a mandated element of a general plan in 1969, or 44 years ago. The law acknowledges that, in order for the private market to adequately address housing needs and demand, local governments must adopt land use plans and regulatory systems which provide opportunities for, and do not unduly constrain, housing development. Government Code Section 65583 states: The housing element shall consist of an identification and analysis of existing and projected housing needs and a statement of goals, policies, quantified objectives, financial resources, and scheduled programs for the preservation, improvement, and development of housing. The housing element shall identify adequate sites for housing, including rental housing, factory-built housing, mobile homes, and emergency shelters, and shall make adequate provision for the existing and projected needs of all economic segments of the community. In enacting the housing element requirement in 1969, the State legislature found and declared that - 1-4 The availability of housing is of vital statewide importance, and the early attainment of decent housing and a suitable living environment for every Californian, including farm workers, is a priority of the highest order. And that— The provision of housing affordable to low- and moderate-income households requires the cooperation of all levels of government. Also— Local and state governments have a responsibility to use the powers vested in them to facilitate the improvement and development of housing to make adequate provision for housing needs of all economic segments of the community. The Housing Element must include six major components: An assessment of the community's housing needs. ➢ An inventory of sites that can accommodate the need for new housing. An analysis of housing market and governmental constraints that impede public and private sector efforts to meet the needs. A progress report describing actions taken to implement the 2008-2014 Housing Element. A statement of goals, quantified objectives and policies relative to the construction, rehabilitation, conservation and preservation of housing. An implementation program which sets forth a schedule of actions which the City is undertaking or intends to undertake to implement the policies and achieve the stated goals and objectives. The City's prior Housing Element was adopted on January 19, 2010. Since that date, SB 812 is the only major change to the law. Chapter 507, Statutes of 2010 (SB 812), which took effect January 2011, amended State housing element law to require the analysis of the special housing needs of persons with developmental disabilities. This analysis should include an estimate of the number of persons with developmental disabilities, an assessment of the housing need, and a discussion of potential resources. SB 375 requires that the housing element due date is 18 months after adoption of the Regional Transportation Plan (RTP). October 15, 2013 (18 months after the RTP was adopted) is the due date for adoption of the Housing Element. According to Government Code Section 65588(f)(1): "Planning Period" shall be the time period between the due date for one housing element and the due date for the next housing element. The City's Housing Element planning period is from October 15, 2013 to October 15, 2021. According to Government Code Section 65588(f)(2): "Projection Period" shall be the time period for which the regional housing need is calculated. The SCAG Regional Housing Needs Assessment (RHNA) covers the period from January 1, 2014 to October 1, 2021. According to SCAG, the anomaly of the housing element due date (October 15, 2013) preceding the RHNA start date (January 1, 2014) is due to (a) legislative changes and statutory definitions and (b) the date that SCAG adopted its Regional Transportation Plan. Also, HCD uses January 1 or July 1 for RHNA determination start date purposes as these are the effective dates used by Department of Finance (DOF) in updating housing estimates and population projections. D. ROLE AND ORGANIZATION OF THE HOUSING ELEMENT As previously noted, the Housing Element is one of seven mandatory elements of a General Plan. Its focus is on assessing the community's housing needs and describing programs to address those needs. The element must describe actions to— Identify adequate sites to accommodate a variety of housing needs Assist in the development of affordable housing r Remove governmental constraints to housing improvement and construction ➢ Improve the condition of housing ➢ Preserve the affordable housing supply > Promote fair housing Promote energy conservation In addition to this Introduction, two additional Sections and two Appendices comprise the Housing Element: Section 2: Overview: This Section provides an overview of the public participation efforts of the City during the development of the Housing Element, challenges the City faces in addressing housing needs, and a brief summary of the document. Section 3 - Housing Program: This Section provides a summary of the housing needs and describes the goals, policies and objectives of the Housing Element. Section 3 also describes the individual programs that will be implemented during the eight-year planning period. Agencies involved in program implementation include the Community Development Department, other City Departments, the County Housing Authority and the County Community Development Commission. Appendix A: This Appendix contains detailed information on the following: Housing Needs Assessment ➢ Sites Inventory and Analysis Housing Market Constraints Analysis ➢ Governmental Constraints Analysis Progress Report Appendix B: This Appendix includes a list of organizations consulted, data sources, and definitions. E. HOUSING ELEMENT CONSISTENCY WITH OTHER GENERAL PLAN ELEMENTS Six elements comprise the Rancho Palos Verdes General Plan: > Natural Environment Element Socio/Cultural Element Urban Environment Element ➢ Land Use Plan ➢ Fiscal Element Housing Element During the planning period, consistency between the Housing Element and General Plan will be maintained through the General Plan Annual Progress Report. This Report, which is usually completed in spring of each year, reports on the status and implementation progress of the General Plan Elements. The Progress Report contains information on the status of amendments to the General Plan and the status of work efforts and programs implemented by the City each year that go toward meeting the goals and objectives and fulfilling the policies set forth in each General Plan Element. In future Progress Reports, the City will include information on whether any of these amendments will generate a need to amend the Housing Element with respect to goals, policies, objectives, programs or the sites inventory. Revisions to the Housing Element can then be made concurrently with amendments to the other General Plan Elements. In this way, internal consistency between the General Plan Elements and the Housing Element will be maintained throughout the planning period. In addition, the City will add an internal consistency section to the Housing Element Progress Report which is completed in April of each year and submitted to HCD. That section will describe any revisions or changes to the Housing Element that were enacted the prior calendar year in order to maintain consistency with all the other General Plan Elements. Future amendments to the Safety, Conservation, and Land Use Elements will require a review of the Housing Element for internal consistency, which may in turn, require amendments to the Housing Element. For example, if sites identified in the Housing Element as suitable for housing development are subsequently identified as inappropriate for development, other sites will need to be identified. Annual review of the Land Use Element will assist the City in future updates of the Housing Element and facilitate identification of appropriate sites to accommodate the City's share of the regional housing need. F. OTHER STATUTORY REQUIREMENTS 1. Water and Sewer Priority Chapter 727 amended Government Code Section 65589.7(a) as follows: The housing element adopted by the legislative body and any amendments made to that element shall be immediately delivered to all public agencies or private entities that provide water or sewer services for municipal and industrial uses, including residential, within the territory of the legislative body. Each public agency or private entity providing water or sewer services shall grant a priority for the provision of these services to proposed developments that include housing units affordable to lower income households. [Emphasis added] The water supply is provided by the California Water Services Company, Rancho Dominguez District, located at 2632 West 237th Street, Torrance, CA 90505. The Community Development Department will deliver to the District a copy of the Housing Element following its adoption by the City Council. The Public Works Department (PWD) manages the City's sanitary sewer collection system. The City's local sewers discharge into Los Angeles County Sanitation District facilities for conveyance, treatment and disposal. The Community Development Department will deliver a copy of the Housing Element to the PWD and the Sanitation District's Administrative Office (1955 Workman Mill Road, Whittier, CA 90601). 2. Flood Hazards and Flood Management Information Government Code Section 65302 requires all cities and counties to amend the safety and conservation elements of their general plan to include an analysis and policies regarding flood hazard and flood management information upon the next revision of the housing element on, or after, January 1, 2009. The "Safety" section of the Urban Environment Element contains the analysis and policies pertaining to flood hazards and flood safety programs. Government Code Section 65302 also requires cities and counties, effective January 1, 2008, to annually review the land use element for those areas subject to flooding identified by flood plain mapping prepared by the Federal Emergency Management Agency (FEMA) or the State Department of Water Resources. The City conducts its annual review as part of the General Plan Annual Progress Report and also by the preparation of environmental impact reports. CITYOF JLA40 RANCHO PALOS VERDES 2013-2021 HOUSING ELEMENT OVERVIEW City of Rancho Palos Verdes 2013-2021 Housing Element of the General Plan Section 2-Overview Table of Contents A. Housing Element Public Participation Effort..............................................................................2-1 1. Housing Needs Survey------------------------------------------------------------------------------------------------------- 2-1 2. Community Stakeholder Outreach.......................................................................................2-2 3. Public Review of the Draft Housing Element--------------------------------------------------------------------- 2-3 4. Planning Commission and City Council Public Hearings...................................................2-3 B. Challenges to Addressing the Community's Housing Needs------------------------------------------------- 2-3 1. Reduced Funding for the Section 8 Housing Choice Voucher Program...........................2-4 2. Reduced Federal CDBG and HOME Funding....................................................................2-4 3. Loss of the Redevelopment Agency's Low and Moderate Income Housing Fund...........2-4 C. Housing Element Summary........................................................................................................2-5 List of Tables 2-1 City of Rancho Palos Verdes 2013-2021 Housing Element Housing Program Outline List of Specific Individual Programs by Program Category-----------------------------------------------2-5 List of Charts 2-1 City of Rancho Palos Verdes Household Income of Survey Respondents......................2-2 The Section 2 Overview presents information on: ➢ Housing Element Public Participation Effort Challenges To Addressing the Community's Housing Needs > Brief Housing Element Summary A. HOUSING ELEMENT PUBLIC PARTICIPATION EFFORT A housing element must: Include a diligent effort by the local government to achieve public participation of all economic segments of the community in the development of the housing element During the development of the 2013-2021 Housing Element Update, public participation efforts included: Housing Needs Survey Community Stakeholder Outreach ➢ Public Review of the Draft Housing Element ➢ Planning Commission and City Council Public Hearings 1. Housing Needs Survey A Housing Needs Survey comprised of eight questions was posted on the City's website. The public was notified of the survey by a publication in the Palos Verdes Peninsula News and to subscribers of the City's email listserve system. The purpose of the Survey was to garner insights on the respondents housing needs and their opinions on the community's housing needs. Nine residents responded to the Survey. A summary of the Survey results is presented below: Household Characteristics: ➢ 60% Owners 40% Renters y 0% large families (5 Persons or more) ➢ 50% have annual incomes of less than $48,000 Refer to Chart 2-1 for the income distribution of all survey respondents. Of all respondents: 20% said they "need grab bars, ramps, or other accessibility modifications" 20% "have difficulty using stairs, bathtub, etc." Chart 2-1 City of Rancho Palos Verdes Monthly Household Income of Survey Respondents $8,000 to$8,999 0% More than$9,000 17% Less than$2,000 32% $7,000 to$7,999 17% $4,000 to$4,999 $3,000 to$3,999 17% 17% $6,000 to$6,999 0% $2,000 to$2,999 $5,000 to$5,999 0% 0% When asked about their family's housing needs: ➢ 25% "need help with home repairs and maintenance" ➢ 75% say their "monthly housing costs are too high" ➢ 50% "need a larger place to live in" ➢ 75% say their "monthly utility bills are too high" When asked about high priority community housing programs: ➢ 25% said "assistance to modify my home" ➢ 50% indicated "first time home buyer assistance" 33% indicated "assistance with monthly housing costs" ➢ 50% indicated "single-family home repair and rehabilitation" While the survey is not a scientific sample, the respondents' answers reveal a need for assistance for home repairs and rehabilitation, and first-time homebuyer assistance. Sixty percent of the respondents indicated that senior housing was a priority while 25% stated new family housing as a priority. 2. Community Stakeholder Outreach An essential part of the public participation effort was outreach to community stakeholders. Persons and organizations that represent the interest of low income families, the elderly, and special needs households were contacted, including: ➢ REACH — Developmentally Disabled ➢ Harbor Regional Center ➢ Fair Housing Foundation ➢ Mirandela Affordable Housing Development ➢ Peninsula Seniors 3. Public Review of the Draft Housing Element The Draft Housing Element will be posted on the City's website on August 8, 2013 in advance of the Planning Commission meeting scheduled for August 27, 2013. A notice published in the Palos Verdes Peninsula News will inform residents of the opportunity to review and to provide comments on the Draft Housing Element. The Community Development Director will notify community stakeholders that comments on the Draft Housing Element are welcomed. On August 27, 2013, the Preliminary Draft Housing Element was presented to the Planning Commission for review and comments. The Planning Commission provided Staff with direction to make relatively minor modifications to the Preliminary Draft and to forward the document to the City Council for review. The revised Preliminary Draft with the Planning Commission recommended changes was distributed to the Council on September 3, 2013. On August 29, 2013, a public notice was published in the Palos Verdes Peninsula News to inform residents of the opportunity to review and to provide comments on the Draft Housing Element at the September 17th City Council meeting. Subsequently, on September 17th, the City Council received a Staff Report on the Preliminary Draft, heard public testimony, discussed the Preliminary Draft and posed questions to Staff. At the meeting, the Council expressed some concerns regarding the Preliminary Draft and requested that Staff conduct additional research. The Council then continued the item to October 1, 2013. At the October 1, 2013 public hearing, the City Council approved the Preliminary Draft Housing Element and a site for re-zoning pursuant to an Adequate Sites Program. During both the City Council and Planning Commission review, one property owner expressed support for residential zoning along Western Avenue. The City also received letters and testimony from residents opposing the ideas of residential zoning along Western Avenue. 4. Planning Commission and City Council Public Hearings The Public Hearings before the Planning Commission and City Council will offer another opportunity for the public to comment on the Draft Housing Element. Community stakeholders will be notified by the Community Development Director of the opportunity to comment on the Housing Element at the scheduled public hearings. B. CHALLENGES TO ADDRESSING THE COMMUNITY'S HOUSING NEEDS At the beginning of the prior planning period — July 1, 2008 — Rancho Palos Verdes was in a much better position to address the community's housing needs. Years before the prior planning period began; the City had established a Redevelopment Agency and had accumulated financial resources in the Low and Moderate Income Housing Fund. Additionally, the County of Los Angeles Housing Authority was maintaining its Section 8 Housing Choice Voucher program. Now five years later as the City enters the new planning period it faces the challenge of diminishing resources. 1. Reduced Funding for the Section 8 Housing Choice Voucher Program Sequestration — automatic Federal spending cuts — impacts the resources the County of Los Angeles Housing Authority receives to administer and make housing assistance payments under the provisions of the Section 8 Housing Choice Voucher Program. HUD has warned: About 125,000 individuals and families, including elderly and disabled individuals, could lose assistance provided through the Housing Choice Voucher (HCV) program and be at risk of becoming homeless. The HCV program, which is administered by state and local public housing agencies (PHAs), provides crucial assistance to families and individuals in renting private apartment units. There may be even more families affected by these sequestration cuts to the extent that PHAs are forced to absorb annual funding losses in less than a full twelve month time frame. In addition, since sequestration will also cut PHA administrative fees for the HCV program, numerous PHAs may find continued operation of the program financially untenable and thus stop operating the program entirely, which will harm even more families and individuals, including homeless veterans. Source: Written Testimony of Secretary Shaun Donovan, Hearing before the Senate Committee on Appropriations on The Impacts of Sequestration, Thursday February 14, 2013. Although only two families are presently receiving Section 8 rental assistance, reduced funding could prevent additional families from obtaining help to relieve overpaying. 2. Reduced Federal CDBG and HOME Funding Additionally, over the recent years, the amount of Community Development Block Grant (CDBG) funds available to local communities has been dwindling. Rancho Palos Verdes is not a CDBG entitlement jurisdiction but receives funds from the County of Los Angeles Community Development Commission. Rancho Palos Verdes is one of 39 cities that participate in the County's CDBG program. The City is not a participating jurisdiction under the HOME Partnerships Program and, therefore, does not have a dedicated source of affordable housing funds. During the past few years, the amount of CDBG funds allocated by HUD to the County has diminished. The County allocates funds to the participating through a formula that considers population, poverty and overcrowding. The City's percentage share of all funds received by the County is .008499%. In FY 2013-2014, the City will receive $142,918. Because of the decrease in CDBG funding and new County requirements, the City discontinued the Home Improvement Program. 3. Loss of the Redevelopment Agency's Low and Moderate Income Housing Fund Pursuant to State law, the Rancho Palos Verdes Redevelopment Agency was dissolved in February 2012. Prior to the dissolution, the RDA was receiving approximately $225,000 per year in its Low and Moderate Income Housing Fund. As a result of the dissolution, these funds are no longer available. C. HOUSING ELEMENT SUMMARY Since the City adopted the current Housing Element in December 2009, only one major change has been made to the statute. That change requires an analysis of the needs of developmentally disabled persons. As noted above, resources to address housing needs have dwindled leaving the City in a much poorer position than it was five years. Table 2-1 on the next page shows the programs that the City will implement in order to meet the six program mandates of the housing element law. Table 2-1 City of Rancho Palos Verdes 2013-2021 Housing Element Housing Program Outline List of Specific Individual Programs by Program Category . . . Category 1 — Identify Housing Sites to 1. Adequate Sites Program Accommodate the City's Share of the Regional 2. Moderate Income Second Unit Development Housing Need Program 3. No Net Loss Program Category 2 — Assist in the Development of 4. Section 8 Rental Assistance for Cost Burdened Lower Income and Moderate Income Housing Lower Income Households 5. Citywide Affordable Housing Requirement/ Housing Impact Fee 6. First Time Homebuyer Assistance 7. Outreach Program for Persons with Disabilities 8. Extremely Low Income Housing Program Category 3— Remove Governmental 9. Zoning Ordinance Amendments to Remove Constraints to the Maintenance, Improvement Governmental Constraints and Development of Housing Category 4— Conserve and Improve the 10. Housing Code Enforcement Program Existing Stock of Affordable Housing 11. Housing Improvement Program Category 5— Promote Housing Opportunities 12. Fair Housing Services Program for All Persons 13. Fair Housing Information Program Category 6— Promote Energy Conservation 14. Energy Conservation Program CITYOF JLA40 RANCHO PALOS VERDES 2013-2021 HOUSING ELEMENT HODS/NG PROGRAM City of Rancho Palos Verdes 2014-2021 Housing Element of the General Plan Section 3 Table of Contents A. Introduction 3-1 ----------------------------------------------------------------------------------------------------------------------------------- Program Category #1: Describe Actions to Make Sites Available to Accommodate the City's Share of the Regional Housing Need and Encourage the Development of a Variety of Housing Types...................................................................................................................................................3-4 1. Housing Needs, Goals, Policies and Objectives-----------------------------------------------------------------3-4 2. Housing Programs.................................................................................................................3-4 Program #1 —Adequate Sites Program..............................................................................3-4 Program #2 — Moderate Income Second Unit Development..............................................3-5 Program #3 — No Net Loss Program---------------------------------------------------------------------------------- 3-6 Program Category#2: Assist in the Development of Adequate Housing to Meet the Needs of Extremely Low-, Very Low-, Low- and Moderate-Income Households-------------------------------------3-6 1. Housing Needs, Goals, Policies and Objectives................................................................3-6 2. Housing Programs.................................................................................................................3-7 Program #4 — Section 8 Rental Assistance for Cost Burdened Lower Income Renters 3-7 Program #5— Citywide Affordable Housing Requirement/Housing Impact Fee------------- 3-8 Program #6 — First Time Homebuyer Assistance---------------------------------------------------------------3-8 Program #7 — Outreach Program for Persons with Developmental Disabilities... ....... 3-8 Program #8 — Extremely Low Income (ELI) Program---------------------------------------------------------3-9 Program Category #3: Address and, Where Appropriate and Legally Possible, Remove Governmental Constraints to the Maintenance, Improvement and Development of Housing... 3-9 1. Housing Needs, Goals, Policies and Objectives................................................................3-9 2. Housing Programs---------------------------------------------------------------------------------------------------------------3-10 Program #9— Zoning Ordinance Amendments to Remove Governmental Constraints-Employee Housing Act...................................................................................3-10 Program Category#4: Conserve and Improve the Condition of the Existing Stock of AffordableHousing..........................................................................................................................3-11 1. Housing Needs, Goals, Policies and Objectives------------------------------------------------------------- 3-11 2. Housing Programs...............................................................................................................3-11 Program #10 — Housing Code Enforcement Program---------------------------------------------------- 3-11 Program #11 — Housing Improvement Program___________ ________ ________ ________ __________________3-12 Program Category#5: Promote Housing Opportunities for All Persons....................................3-12 1. Housing Needs, Goals, Policies and Objectives............................................................. 3-12 2. Housing Programs........................................................................................................3-13 Program #12 — Fair Housing Services Program...............................................................3-13 Program #13 — Fair Housing Information Program...........................................................3-14 Program Category#6: Promote Energy Conservation................................................................3-14 Program #14 — Energy Conservation Program................................................................3-14 List of Tables 3-1 City of Rancho Palos Verdes — 2013-2021 Housing Program Summary.........................3-2 A. INTRODUCTION Government Code Section 65583(c) requires that a housing element include: A program which sets forth a five-year schedule of actions the local government is undertaking or intends to undertake to implement the policies and achieve the goals and objectives of the housing element.... The housing program must: Identify Actions to Make Sites Available to Accommodate the City's Share of the Regional Housing Need [Government Code Section 65583(c)(1)] 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)] Address and, Where Appropriate and Legally Possible, Remove Governmental Constraints to the Maintenance, Improvement and Development of Housing [Government Code Section 65583(c)(3)] Conserve and Improve the Condition of the Existing Stock of Affordable Housing [Government Code Section 65583(c)(4)] Promote Housing Opportunities for All Persons Regardless of Race, Religion, Sex, Marital Status, Ancestry, National Origin, Familial Status, or Disability [Government Code Section 65583(c)(5)] Promote Energy Conservation [Government Code Section 65583(a)(8)] The City does not have affordable housing at risk of conversion to market rate housing (refer to pages A-10 and A-11). Therefore, Government Code Section 65583(c)(6) which concerns the preservation of at-risk housing does not apply to Rancho Palos Verdes. For each of the six program categories listed above, Section 3 presents: A summary of the program category's housing needs. Each housing need (e.g., cost burden, housing rehabilitation) is discussed in greater detail in Appendix A. A statement of the program category's housing goals, policies and objectives. r A description of the program category's individual programs that will be implemented during the 2013-2021 planning period. Table 3-1 presents a summary description of the individual programs of each program category as follows: ➢ Individual Program Title ➢ Responsible Implementing Agency ➢ Objective ➢ Time Schedule ➢ Funding Source(s) Under the Funding Source(s) column, CDD refers to Community Development Department. The 14 individual programs are described in greater detail on pages 3-3 through 3-14. Table 3-1 City of Rancho Palos Verdes — 2013-2021 Housing Program Summary ProgramsIndividual - OrMet;'Elve . - %gency 1. Western Avenue Vision Community Minimum of 8 Implemented no General Fund for CDD Plan/Adequate Sites Development housing units for later than March Planning staff Program Department lower income 2017 households 2. Moderate Income Community 10 second units Applications will be General Fund for CDD Second Unit Development constructed processed during Planning staff Development Program Department the October 2013— October 2021 planning period 3. No Net Loss Program Community Establish the Implemented by General Fund for CDD Development evaluation July 2014 Planning staff Department procedure to monitor housing capacity 4. Section 8 Rental Housing Authority 4 units for HAP contracts County Section 8 Assistance for Cost of the County of extremely low between the contract with HUD Burdened Lower Los Angeles and low income Housing Authority Income Households renter and HUD will be households executed annually during the October 2013— October 2021 planning period 5. Citywide Affordable Community Minimum of 7 New projects will General Fund for CDD Housing Requirement/ Development housing units for be subject to Planning staff Housing Impact Fee Department lower income Program #5 during Housing Impact Fee house- the holds October 2013— October 2021 planning period 6. First Time Home Buyer Community 3 moderate Implemented County Home Funds, Assistance Development income throughout the Tax Credits, and Bond Department households October 2013— Proceeds County of Los October 2021 Angeles planning period Community Development Commission So. California Home Financing Authority 7. Outreach Program for Community Coordinate with Implement outreach General Fund for Persons with Development Harbor Regional components no later CDD Planning staff Disabilities Department Center than 2015 REACH Table 3-1-continued City of Rancho Palos Verdes — 2013-2021 Housing Program Summary Programs . . N IF r Implementing urce(s) %gency 8. Extremely Low Income Community Assist 4 Implemented HUD Section 8 Housing Program Development extremely low annually during the funds, Department and income 2013-2021 planning Citywide Affordable Housing Authority households period Housing of the County of Requirement and Los Housing Impact Fee Angeles 9. Zoning Ordinance Community Adopted Adopted by July General Fund for Amendments to Development amendment 2014 CDD Planning staff Remove Governmental Department Constraints 10. Housing Code Community 10 new cases Implemented General Fund for Enforcement Program Development per month annually during the CDD code Department 2013-2021 planning enforcement staff period 11. Home Improvement Public Works 5 housing units Implemented CDBG, CalHome, or Program Department throughout the Other Non-City 2013-2021 planning Funds period, subject to funding availability 12. Fair Housing Services Fair Housing 65 lower- Implemented County CDBG Funds Program Foundation income throughout the households 2013-2021 planning period 13. Fair Housing Information Community Information Info.will be posted General Fund for Program Development disseminated on the City's website CDD Planning staff Department by July 2014. Brochures and other fair housing literature will be disseminated by January 2015. Website and fair housing info.will be updated annually. 14. Energy Conservation Community Implement Implemented General Fund for Program Development Voluntary Green throughout the CDD Building staff Department Building 2013-2021 planning Construction period: energy Program conservation ordinances will be updated as required by State Law PROGRAM CATEGORY #1: DESCRIBE ACTIONS TO MAKE SITES AVAILABLE TO ACCOMMODATE THE CITY'S SHARE OF THE REGIONAL HOUSING NEED AND ENCOURAGE THE DEVELOPMENT OF A VARIETY OF HOUSING TYPES Government Code Section 65583(c)(1) states that the housing program must: Identify actions that will be taken to make sites available during the planning period of the general plan with appropriate zoning and development standards and with services and facilities to accommodate that portion of the city's ... share of the regional housing need for each income level that could not be accommodated on sites identified in the inventory ... without rezoning... Sites shall be identified as needed to facilitate and encourage the development of a variety of types of housing for all income levels, including multifamily rental housing, factory-built housing, mobilehomes, housing for agricultural employees, supportive housing single-room occupancy units, emergency shelters, and transitional housing. 1. Housing Needs, Goals, Policies and Objectives SCAG's Regional Housing Needs Assessment has allocated a new housing construction need to Rancho Palos Verdes of 31 housing units, as follows: SCAG'S Regional Housing Needs: January 2014 — October 2021 4 4 5 5 !13 31 The Sites Inventory and Analysis (pages A-21 to A-24) demonstrates that there are sufficient sites to meet most of the housing needs listed above. To provide sufficient sites for moderate income households, however, the City will promote the development of second units. Additionally, the City will implement a Western Avenue Vision Plan/Adequate Sites Program to address the current shortfall of eight lower income housing sites. Goals Accommodate the housing needs of all income groups as quantified by the Regional Housing Needs Assessment (January 2014 - October 2021). r Facilitate the construction of the maximum feasible number of housing units for all income groups. Policies ➢ Designate sites that provide for a variety of housing types. Implement the Land Use Element and Development Code to achieve adequate sites for all income groups. Prefer that persons, entities, and/or developers that are obligated to provide affordable housing units provide the affordable housing units on-site as part of their development project rather than paying in-lieu fees. New Construction Objectives 1 2 2 10 116 131 2. Housing Programs Program #1 —Adequate Sites Program The City received Compass Blueprint funding from SCAG to complete a Western Avenue Vision Plan. Phase 1 has been completed and on September 12, 2013, the City obtained a grant from SCAG to complete Phase 2. The Western Avenue corridor, for most of its two-mile length, constitutes the municipal boundary between the cities of Rancho Palos Verdes (on the west) and Los Angeles (on the east). The Vision Plan focuses on the two-mile stretch from Palos Verdes Drive on the north to Peck Park on the South. The study corridor provides a diversity of uses with commercial uses being concentrated on the south end, a mix of commercial and residential uses between Toscanini and John Montgomery Drives, and institutional uses located at the north end. The City will implement an Adequate Sites Program to address the shortfall of sites to accommodate eight lower income housing units during Phase 2 of the Western Vision Plan process. The City has identified the following site as one that is appropriate to re-zone to a minimum of 20 dwelling units per acre: ➢ Geographic identifiers: 26919 Western Avenue; Assessor Parcel Number 7557-039-011 ➢ Size: .44 acres ➢ Current General Plan Designation: Commercial-Retail ➢ Current Zoning Designation: Commercial-General ➢ Existing Uses: Older commercial structure built in 1961, with a total of four tenants, measuring 14,092ft2 in size. The site is considered legal non-conforming due to the lack of on-site parking. The property owner of this site indicated his interest and support in re-zoning the property to potentially attract developers to re-develop this aging, non- conforming site. Housing Capacity: 8 units at a density of 20 dwelling units per acre. Zoning of this site will be accomplished during the Western Avenue Vision Plan process, but no later than March 2017 and will allow multifamily uses by right, without a CUP, planned unit development permit or other discretionary action pursuant to Government Code Section 65583.2(h) and (i). One part of the Government Code requires that sites be sized to allow a minimum of 16 dwelling units per site. Program #2 — Moderate Income Second Unit Development SCAG allocated a moderate income housing need of five housing units. . During the five-year between 2008 and 2013, four second units have been built and two are approved but have not been constructed. The annual average is 1.2 second units. Based on this annual average, it is projected that nine to 10 second units will be constructed during the eight-year planning period The monthly rents of the second units would be affordable to moderate income households (refer to pages A-22 to A-24). In order to encourage and facilitate the development of moderate income second units, the following actions will be implemented during the 2013-2021 planning period: Publish an article on second unit developments and standards in the Palos Verdes Peninsula News. The article will be published in the first quarter of 2014 and will be re-published at least annually. Keep homeowners informed of second unit development through periodic announcements on the City's Website and local newspaper. Consider adopting a policy to defer, reduce and/or waive second unit planning and development impact fees. Work with the local architectural community to post on the City's website drawings that may help homeowners to visualize how second units can be developed on their lots. The drawings will be posted on the City's website by mid-year 2014. Prepare and make available at the Community Development Department counter a brochure on second unit development. The brochure will be prepared and available by the mid-year 2014. y Complete a survey of other methods used by cities to promote second unit development. Based on the findings of this review, the City would revise and/or establish new standards, procedures, and incentives. The City will complete the review and evaluation by the fourth quarter 2014. Program #3— No Net Loss Program This is a model program developed by HCD and that Department recommends inclusion of this program in the Housing Element Update. The program implements Government Code Section 65863. The "no net loss" program is described as follows: To ensure adequate sites are available throughout the planning period to meet the City's RHNA, the City will annually update an inventory that details the amount, type and size of vacant and underutilized parcels to assist developers in identifying land suitable for residential development. The City will also report on the number of extremely low, very low, low and moderate income units constructed annually. If the inventory indicates a shortage of available sites; the City will rezone sufficient sites to accommodate the City's RHNA. To ensure sufficient residential capacity is maintained to accommodate the City's RHNA, the City will develop and implement a formal ongoing (project-by-project) evaluation procedure pursuant to Government Code Section 65863. Should an approval of development result in a reduction of capacity below the residential capacity needed to accommodate the remaining need for lower income households, the City will identify and zone sufficient sites to accommodate the shortfall. This program will be implemented on an ongoing basis throughout the planning period. The development of the evaluation procedure to implement Government Code Section 65863 will be accomplished by June-July 2014. 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 Needs, Goals, Policies and Objectives Cost burden or overpaying, which is defined as spending 30% or more of gross household income for housing including utilities, is the most severe need experienced by lower income households. Cost burden is adversely impacting the quality of life of 700 lower income renters and 1,200 lower income owners. There also is need for 13 new lower-income and 5 new moderate- income housing units. Goals Reduce the number of cost burdened lower income households. Reduce the number of crowded lower income households. Increase the number of moderate income, first-time homebuyers. Policies Provide rental assistance to extremely low-, very low, and low- income households through programs administered by the Housing Authority of the County of Los Angeles. Monitor and protect the supply of affordable housing by enforcing existing regulations and affordability restrictions. Continue to implement the Citywide Affordable Housing Requirement/Housing Impact Fee. Facilitate the construction of new housing affordable to lower income households. Ensure the affordability of new affordable housing developments through long-term affordability covenants. Provide information to local residents about financial assistance available to first time homebuyers. Housing Assistance Objectives* 4 7 5 3 19 *Includes Section 8 assisted households (4), Citywide Affordable Housing Requirement/Housing Impact Fee (7), housing improvement program (5) and first time homebuyer assistance (3) 2. Housing Programs Program #4 - Section 8 Rental Assistance for Cost Burdened Lower Income Renters The Housing Authority of the County of Los Angeles administers the Section 8 Housing Choice Voucher Program in the unincorporated area and 62 cities, including Rancho Palos Verdes. This program contributes to achieving the goals of reducing overpaying and crowding. The planning period objective is to provide rental assistance to 2 extremely low income households and 2 very low income households. In order to assist the Housing Authority staff in program implementation, the City will do all of the following: ➢ Assist the Housing Authority in conducting a Landlord Outreach Program ➢ Inform the Housing Authority staff of the City's initiatives to provide affordable housing through the existing housing stock. ➢ Transmit apartment rental surveys to the Housing Authority staff ➢ Explore with the Housing Authority staff, opportunities for use of the Section 8 program in existing apartment housing. The City actions will be accomplished by the 4t" quarter 2014. Program #5- Citywide Affordable Housing Requirement/Housing Impact Fee All new residential developments of five or more dwelling units are required to provide up to 5% of all units affordable to very low income households or to provide up to 10% of all units 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 of providing the required affordable housing units. The City Council established an in-lieu fee of $201,653 plus a 10% administrative fee per affordable unit required. In order to mitigate the impact of local employment generation on the local housing market, new nonresidential development or conversion of existing development to a more intense use, must make provision for housing affordable to low and very low households. This requirement applies to applications for the construction, expansion or intensification of nonresidential land uses, including but not limited to commercial projects, golf courses, private clubs, and institutional developments. Developers of non-residential projects must pay a residential impact fee as established by the City Council. The fee must be adequate to provide one low or very low affordable housing unit for each 10 employees to be generated by the nonresidential development. The City Council established an in-lieu fee of$1 per square foot of habitable residential structure. Through these two initiatives, at least seven affordable housing units will be provided: ➢ 3 at the Crestridge Senior Housing Project 2 at the Highridge Condominium Project ➢ 2 off-site from the Trump Homes Project Additionally, the City currently has approximately $500,000 in its Affordable Housing In-Lieu Fund. The City will create a program by June 30, 2017 that addresses the expenditure of these funds towards affordable housing. Program #6 — First Time Homebuyer Assistance The City no longer has monies in an affordable housing fund due to the forced dissolution of the Redevelopment Agency. There are non-City programs, however, which provide financial assistance to first time homebuyers. The City will post on its website information on these programs which include: ➢ County Homeownership (HOP) Program County Mortgage Credit Certificate (MCC) Program Southern California Home Financing Authority Down Payment Assistance Program Additionally, the City currently has approximately $500,000 in its Affordable Housing In-Lieu fund. The City will create a program by June 30, 2017 that addresses the expenditure of these funds towards affordable housing. The HOP Program offers down payment assistance to lower income households in the amount of$50,000 or 20% of the purchase price, whichever is less. The MCC Program provides a credit against Federal income taxes owed by first time homebuyers. The tax credit is equal to 15% of each year's interest payment. The Southern California Home Financing Authority offers down payment and closing cost assistance in the form of a gift equal to 4% of the first loan amount. Program #7 — Outreach Program for Persons with Developmental Disabilities In order to assist in the housing needs for persons with developmental disabilities, the City will implement programs to coordinate housing activities and outreach with the Harbor Regional Center and to encourage housing providers to designate a portion of new affordable housing developments for persons with disabilities, especially persons with developmental disabilities, and pursue funding sources designated for persons with special needs and disabilities. More specifically, the City will work with the Harbor Regional Center to implement an outreach program that informs families within Rancho Palos Verdes about housing and services available for persons with developmental disabilities. The program could include the development of an informational brochure, including information on services on the City's website, and providing housing-related training for individuals and families through workshops. The Community Development Department will work with REACH program for developmentally disabled persons. Program #8 — Extremely Low Income (ELI) Program The needs of extremely low income households are addressed within the framework of the programs administered by the City and Housing Authority of the County of Los Angeles. Each of these entities addresses the needs of low and moderate income households, including extremely low income households. The quantified objectives for extremely low income households are based on individual programs that address the existing and future needs of extremely low income households, as follows: Program #4 — Section 8 Rental Assistance - 2 extremely low income households ➢ Program #5 — Citywide Affordable Housing Requirement/Housing Impact Fee — 1 extremely low income households ➢ Program #11 — Home Improvement Program — 1 extremely low income households In order to promote the Section 8 Rental Assistance Program, the City will accomplish the following: Transmit to the Housing Authority the Apartment Rental Survey that was completed as part of the Housing Element Update. This information may assist the Housing Authority to identify apartment complexes with monthly rents below the Fair Market Limits. This action will be accomplished by mid-year 2014. Host a Landlord Outreach Workshop to be conducted by the Housing Authority. This action will be accomplished by the 1St quarter of 2015. The outreach efforts and actions will be implemented periodically, as necessary through the balance of the planning period. With regard to Program #5, the City will take the following actions: Continue to require the development of seven affordable housing units in three projects that will be constructed during the planning period. Create a program that will allocate existing and future in-lieu fees towards providing affordable housing, which may include the provision of one or more units for extremely low income households. With regard to Program #11, the City will take the following actions: Annually evaluate the feasibility of reviving CDBG funds as a source to finance the Home Improvement Program. The drastic reduction in CDBG funding and related program administrative costs have hampered the City's ability to continue to use CDBG funds to finance this program. If the amount of CDBG funds allocated to the City is increased, it may be feasible to revive the program. Annually evaluate the potential to apply for housing resources other than CDBG funds to finance Home Improvement Program. Potential resources include the State CalHome Program. 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. 1. Housing Needs, Goals, Policies and Objectives The governmental constraints analysis found a need to address farm employee housing. Goals Attain barrier and constraint free City codes, ordinances, and policies. Provide codes, ordinances, and policies that lead to the improvement of the housing status of residents. Policies Remove existing governmental constraints to the maintenance, preservation, improvement and development of housing. Affirmatively further housing goals through City codes, ordinances and policies that enhance the housing quality of life experienced by residents. Continue to implement land use regulations that facilitate meeting affordable housing needs. Continue the processing of new housing developments designed to address the needs of all income groups. Objectives The housing program efforts do not involve the production or rehabilitation of housing. Therefore, quantified objectives cannot be set for this Program Category. 2. Housing Programs Program #9 - Zoning Ordinance Amendments to Remove Governmental Constraints — Employee Housing Act According to the 2010 Census, none of the employed population in Rancho Palos Verdes works in the industries of farming, fishing or forestry, and there is no agriculturally zoned land in the City. Therefore, given the apparent absence of farmworkers in the community, the City has not identified a need for specialized farmworker housing beyond overall programs for housing affordability. California Health and Safety Code Section 17021.5 (Employee Housing Act) requires jurisdictions to permit employee housing for six or fewer employees as a single-family use. Employee housing shall not be included within the zoning definition of a boarding house, rooming house, hotel, dormitory, or other similar term that implies that the employee housing is a business run for profit or differs in any other way from a family dwelling. Jurisdictions cannot impose a conditional use permit, zoning variance, or other zoning clearance of employee housing that serves six or fewer employees that are not required of a family dwelling of the same type in the same zone. The City will amend the Zoning Ordinance to provide consistency with the Employee Housing Act. Employee housing is privately owned housing that is provided by an employer in connection with any work, whether or not rent is involved. [See Health and Safety Code § 17008(a)] The zoning provisions will be enacted by June-July 2014. PROGRAM CATEGORY#4: CONSERVE AND IMPROVE THE CONDITION OF THE EXISTING STOCK OF AFFORDABLE HOUSING Government Code Section 65583(c)(4) states that a housing program shall describe actions to: Conserve and improve the condition of the existing affordable housing stock, which may include addressing ways to mitigate the loss of dwelling units demolished by public and private actions. 1. Housing Needs, Goals, Policies and Objectives Housing in need of rehabilitation is estimated to range from 300 to 500 housing units. Goals Achieve a housing stock free of substandard structures. ➢ Conserve and improve the existing stock of affordable housing. Policies ➢ Continue to implement the Housing Code Enforcement Program. ➢ Implement a Home Improvement Program when funds become available. Objectives Housing code enforcement at an average level of 10 new cases per month for all income levels during the 2013-2021 planning period. > Rehabilitation of five owner-occupied housing units. The rehabilitation objective assumes that funding from a non-City source will become available during the planning period. Housing Programs Program #10 - Housing Code Enforcement Program The Housing Code Enforcement Division administers the Code Enforcement Program and works to ensure that the provisions of the City's Municipal Code are followed. The Division's actions are driven by complaints. However, the Division also is proactive when the resident's general health, safety and welfare are involved. The Code Enforcement process typically includes the filing of a complaint with the Code Enforcement Officer, investigation of the complaint and notification to the property owner to correct any violation that does exist. The goal of this process is to obtain voluntary compliance; however, if compliance is not achieved then the City does pursue its available legal remedies. Program #11 - Home Improvement Program In December 2012, the City Council decided to discontinue the Home Improvement Program. This program offered grants up to $7,000 and loans up to $13,000 to help owners rehabilitate their homes. Over the recent years, the amount of CDBG funds allocated to the City has decreased by 26%. This decrease coupled with administrative costs that could not be fully charged to CDBG and which required a General Fund subsidy made the program not sustainable. During the planning period, the City may revive the program if it is allocated a greater amount of CDBG funds and/or another funding source becomes available. The City may, for example, apply to the CalHome Program which provides financial resources for loans to low or very low income homeowners. Pursuant to Government Code Section 65583(a)(8) the City would include weatherization and energy efficiency improvements as part of a housing improvement program. As stated on the previous page, the quantified objective is the rehabilitation of five owner- occupied housing units during the planning period. The income distribution is as follows: ➢ Extremely low income — 1 home ➢ Very low income— 2 homes ➢ Low income — 3 homes Achievement of the objective depends on a funding source. If the amount of CDBG funds allocated to the City is increased in the future, it is a potential funding source. Other potential funding sources include the State CalHome Program and other State programs. PROGRAM CATEGORY #5 PROMOTE HOUSING OPPORTUNITIES FOR ALL PERSONS Section 65583(c)(5) requires that the housing program: Promote housing opportunities for all persons regardless of race, religion, sex, marital status, ancestry, national origin, color, familial status, or disability. 1. Housing Needs, Goals, Policies and Objectives Federal and State fair housing laws prohibit discrimination in the sale, lease, negotiation, insurance, or financing of housing based on race, color, religion, sex, marital status, familial status, disability, national origin, ancestry, sexual orientation, source of income or other arbitrary factor. Housing discrimination complaints may be filed with HUD; the California Department of Fair Employment and Housing; and the Fair Housing Foundation, which serves many communities including Rancho Palos Verdes. Other fair housing needs include general housing counseling and resolving landlord/tenant conflicts. Goals Attain a housing market with "fair housing choice," meaning the ability of persons of similar income levels regardless of race, color, religion, sex, marital status, familial status, disability, national origin, ancestry, sexual orientation, source of income or other arbitrary factor to have available to them the same housing choices. Policies Continue to promote fair housing opportunities through the City's participation in the County's Community Development Block Grant Program. Promote fair housing through the provision of information and referral services to residents who need help in filing housing discrimination complaints. Objectives 50 General Housing Counseling/Resolutions 10 Inquiries (about possible housing discrimination) 5 Cases (opened when counseling and inquiries substantiate possible housing discrimination) 2. Housing Programs Program #12 - Fair Housing Services Program 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 (FHF), will continue to make available fair housing services to its residents. The FHF offers the following services: Discrimination Services FHF provides the following fair housing services to tenants, home-seekers and housing providers: ➢ Responding to Discrimination Inquiries and Complaints — screening and counseling ➢ Documenting Discrimination Complaints — opening fair housing cases ➢ Investigating Discrimination Complaints — extensive testing ➢ Resolving Discrimination Complaints — conciliation, mediation, administrative agency referrals, and litigation Outreach and Education Services FHF provides a comprehensive education and outreach program to educate tenants, landlords, owners, REALTORS, and property management companies on fair housing laws; to promote media and consumer interest; and to secure grass roots involvement within communities. The Program encompasses: Increase Public Awareness — participating in community and school events, attending conventions, providing staff and information at trainings, staffing clinics, and media exposure Conduct Training Sessions for Consumers — conducting 2-hour Tenant Workshops, staffing booths, and conducting community presentations Conduct Training Sessions for Housing Providers — conducting 2-hour Landlord Workshops, 4-hour Certificate Management Trainings, and REALTOR trainings General Housing (Landlord/Tenant) Services FHF counsels tenants, landlords, and housing providers on their rights and responsibilities which include: ➢ Responding to General Housing Inquiries — screening and counseling Documenting General Housing Inquiries — maintaining data on every client, the problem and the resolution Resolving General Housing Inquiries — counsel, pursue habitability cases, provide unlawful detainer assistance, conduct mediations, and provide appropriate referrals The City will accomplish the following during the 2013-2021 planning period: The City 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 and accessibility requirements and target tenants, property managers, or REALTORS. r Each year the City will work with the Fair Housing Foundation to identify services that should be emphasized in the upcoming year. Prepare a summary of the fair housing services provided each year and identify emerging fair housing issues. The summary will be transmitted to the Planning Commission and City Council and included in the Housing Element Annual Progress Report. Program #13 - Fair Housing Information Program The City will establish and implement a Fair Housing Information Program. The information will include, but not be limited, to providing: A Fair Housing brochure that describes fair housing laws and rights. The brochure will be available at the Community Development Department counter. ➢ A link to the Fair Housing Foundation website A link to the State Department of Fair Employment and Housing A link to the U.S. Department of Housing and Urban Development PROGRAM CATEGORY#6 PROMOTE ENERGY CONSERVATION Government Code Section 65583(a)(8) states the Housing Element must include: An analysis of opportunities for energy conservation with respect to residential development. Cities and counties are encouraged to include weatherization and energy efficiency improvements as part of publicly subsidized housing rehabilitation projects. This may include energy efficiency measures that encompass the building envelope, its heating and cooling systems, and its electrical system. Program #14 — Energy Conservation Program Rancho Palos Verdes has taken advantage of a "green" movement in the building and architectural communities that is fully underway and becoming a growing standard both in price and consumer demand, as well as through State-wide building requirements. In order to encourage the construction of "green" buildings, the City of Rancho Palos Verdes adopted a voluntary program for Green Building Construction that applies to residential and non-residential projects. The City is offering permit streamlining as well as up to a 50% rebate of Planning and Building Permit fees for voluntary participation in the City's Green Building Construction program. The program is designed for new construction or major remodels, whereby more than 50% of the interior and exterior walls of an existing structure will be removed. Improvement such as renewable energy systems and small wind energy systems are encouraged. CITYOF JLA40 RANCHO PALOS VERDES 2013-2021 HOUSING ELEMENT APPEND/CES City of Rancho Palos Verdes 2013-2021 Housing Element of the General Plan Appendix A Table of Contents A. IntroductionA-1 ................................................................................................................................... B. Housing Needs Assessment------------------------------------------------------------------------------------------------------A-2 1. Introduction and Summary...................................................................................................A-2 2. Housing Characteristics------------------------------------------------------------------------------------------------------ A-3 a. Existing Housing Stock by Occupancy Status............................................................ A-3 b. Numbers and Types of Units------------------------- -------- -------- -------- -------- -------- --------A-4 c. Condition of the Existing Housing Stock-----------------------------------------------------------------------A-4 3. Household Characteristics A-5 ---------------------------------------------------------------------------------------------------- a. Tenure— Owners and Renters A-5 ....................................................................................... b. Level of Payment Compared to Ability to Pay.............................................................A-6 1. 2013 Income Limits for Income Groups_ __ _______ ___ ________ ________ _______ A-6 ------ - ----- - 2. Cost Burdened and Severely Cost Burdened Owners and Renters....................A-6 3. Extremely Low Income Cost Burdened and Severely Cost Burdened Owners and Renter A-8 --------------------------------------------------------------------------------------------------- 4. Housing Options and Resources--------------------------------------------------------------------------- A-8 c. Overcrowding..................................................................................................................A-8 4. At-Risk Housing Assessment-----------------------------------------------------------------------------------------------A-9 5. Special Housing Needs......................................................................................................A-10 a. Elderly............................................................................................................................A-10 b. Persons with Disabilities A-12 ............................................................................................... c. Persons with Developmental Disabilities--------------------------------------------------------------------A-15 d. Large FamiliesA-16 -------------------------------------- -_______ ________ ________ --------- --------- ------------------ e. Farmworkers A-17 .................................................................................................................. f. Female Householders A-18 g. Families and Persons in Need of Emergency Shelter----------------------------------------------A-19 6. Projected Housing Needs..................................................................................................A-19 a. Population Trends and Projections..............................................................................A-19 b. Employment Trends and Projections. ........ ........ ........ ........ ........ ............... A-19 c. Share of Regional Housing Needs_____ ________ ________ ________ ________ ________ ________ _____ A-20 1. Citywide Share--------------------- --------- --------- -------- -------- -------- -------- ---------------- A-20 2. Extremely Low Income Housing Need................................................................ A-21 C. Sites Inventory and Analysis....................................................................................................A-21 1. Introduction A-21 -------------------------------------------------------------------------------------------------------------------------- 2. Sites to Accommodate the City's Share of the Regional Housing Need...................... A-22 a. Site to Accommodate the Above Moderate Income Housing Need.........................A-22 b. Available Sites to Accommodate the Moderate Income Housing Need...................A-22 c. Available Sites to Accommodate the Lower Income Housing Need........................A-24 3. Environmental Conditions A-24 --------------------------------------------------------------------------------------------------- 4. Public Facilities and Services A-25 --------------------------------------------------------------------------------------------- D. Housing Market Constraints.....................................................................................................A-26 1. Introduction A-26 -------------------------------------------------------------------------------------------------------------------------- 2. Land Costs A-28 ........................................................................................................................... 3. Construction Costs A-28 -------------------------------------------------------------------------------------------------------------- a. Components of Construction Costs........................................................................... A-28 4. Availability of Financing------------------------------------------------------------------------------------------------------A-30 a. Financing Availability Based On Interest Rates.........................................................A-30 b. Financing Availability Based on HMDA Data..............................................................A-30 1. Introduction A-30 -------------------------------------------------------------------------------------------------------------- 2. 2011 Loan Applications---------------------------------------------------------------------------------------- A-31 3. Home Improvement Loan Application — 2011......................................................A-32 4. Reasons for Loan Denial-2011 A-32 ------------------------------------------------------------------------------ 5. Monthly Housing Rents and Sales Prices....................................................................... A-33 a. Apartment Rental Housing Market..... ........ ........ ........ ........ ........ .................A-33 b. Housing Sales Prices--------------- -------- -------- -------- -------- -------- -------- -----------------A-35 E. Governmental Constraints A-37 ........................................................................................................ 1. Actions Taken to Remove Constraints Identified by the 2008-2014 Housing ElementA-37 a. Emergency Shelters..... ................................................................................................A-37 b. Transitional and Supportive Housing..........................................................................A. c. Supportive Housing----------------------------- -------- -------- -------- -------- -------- -----------------A-38 d. Single Room Occupancy Houisng..............................................................................A-38 e. Reasonable Accommodation Procedure A-38 ..................................................................... f. Density Bonus Ordinance--------------------------------------------------------------------------------------------A-39 g. Licensed Residential Care Housing----------------------------------------------------------------------------A-39 h. Farm Employee Housing..................... ......... ......... ......... ......... ......... .................A-39 2. Description of Factors Found Not to be Governmental Constraints---------------------------------A-39 a. Land Use Controls A-39 1. Zoning......................................................................................................................A-39 2. Minimum Dwelling Unit Sizes A-41 3. Design Criteria........................................................................................................A-41 4. Open Space Requirements...................................................................................A-41 5. Parking Requirements------------------------------------------------------------------------------------------ A-41 6. Specific Plans------------------------ ------------------------------------------------------------------------------- A-42 7. Second Unit Development Standards................................................................. A-42 8. Affordable Housing Land Use Controls .. .... . ...........A-42 9. Moratoria and Prohibitions Against Multifamily Housing Developments---------_ A-43 10. Growth Controls, Urban Growth Boundaries...................................................... A-43 b. Building Codes and Enforcement............................ ........ ........ ........ .................A-43 c. On- and Off-Site Improvements________ ________ ________ ________ ________ ________ ________________ A-44 1. On-Site Improvements------- -------- -------- -------- -------- -------- -------- -------- -------A-44 2. Off-Site Improvements...........................................................................................A-45 d. Fees and Exactions A-45 1. Fees A-46 ------------------------------------------------------------------------------------------------------------------------- 2. Exactions A-47 ................................................................................................................. e. Processing and Permit Procedures........................................................................... A-48 1. Residential Single-Family Zones_ ._ _______ ________ ________ ________ ________________ A-48 2. Geology Reports for Single-Family Residences..................................................A-48 3. Multifamily Rental Housing....................................................................................A-48 4. Site Plan Review A-48 ----------------------------------------------------------------------------------------------------- 5. Processing Time..................................................................................................... 6. Overlay Zones........................................................................................................A-49 3. Efforts to Remove Constraints on Housing for the Disabled-------------------------------------------A-50 a. Reasonable Accommodation Procedure A-51 ..................................................................... b. Definition of Family.......................................................................................................A-51 c. Residential Care Facilities for Seven or More Persons A-51 --------------------------------------------- d. Siting or Separation Requirements for Licensed Residential Care Facilities...........A-52 e. Parking Requirements for Persons with Disabilities..................................................A-53 f. Permits and Processing------------------------------------------- -------- -------- -------- -----------------A-53 1. Requesting Retrofit for Accessibility------------------------------------------------------------------- A-53 2. Ensuring Compliance with all State Laws Regulating Requirements for Licensed Residential Care Facilities A-53 ..................................................................... 3. Conditions or Use Restrictions for Licensed Residential Care Facilities with Greater than 6 persons or Group Homes that will be Providing Services On-Site: A-54 .................................................................................................... g. Building Codes-- -----------------------------------------------------------------------------------------------------------A-54 1. Building Code Adoption and Amendments--------------------------------------------------------- A-54 2. Universal Design Elements A-54 3. Building Code Reasonable Accommodations A-55 4. Constraints on Meeting Share of the Regional Housing Need...................................... A-55 F. Progress Report------------------------------------------------------------------------------------------------------------------------A-55 1. Appropriateness of Goals and Policies.............................................................................A-55 2. Effectiveness of the Element A-61 ---------------------------------------------------------------------------------------------- G. Coastal Zone Requirements...............................................................................A-64 List of Tables A-1 City of Rancho Palos Verdes Housing Stock by Occupancy Status April 2000, April 2010 and January 2013...............................................................................................A-3 A-2 City of Rancho Palos Verdes Housing Stock by Type of Unit April 2010 and January2012-------------------------------------------------------------------------------------------------------------------------A-4 A-3 City of Rancho Palos Verdes Age of Housing Stock by Year Built-2010.........................A-5 A-4 City of Rancho Palos Verdes Tenure by Age of Householder A-6 A-5 Los Angeles County 2013 Annual Income Limits Adjusted by Household Size-------_____ A-7 A-6 Los Angeles County Income Limits for a 3-Person Household--------------------------------------- A-7 A-7 City of Rancho Palos Verdes Lower Income Households Cost Burdened and Severely Cost Burdened by Tenure: 2005-2009 CHAS.....................................................................A-7 A-8 City of Rancho Palos Verdes Crowding (Households with More than One Occupant Per Room) by Tenure.............................................................................................................. ..... A-9 A-9 City of Rancho Palos Verdes Cost Burdened Elderly Households by Income Group and Tenure A-11 A-10 City of Rancho Palos Verdes Disability Status of Civilian Non-institutionalized Population by Age Group—April 2010.................................................................................................A-15 A-11 City of Rancho Palos Verdes Large Families by Tenure — 2010------------------------------------A-17 A-12 City of Rancho Palos Verdes Cost Burdened Large Families by Tenure and Income Group...................................................................................................................................A-17 A-13 City of Rancho Palos Verdes Female Householders by Tenure — 2010 A-18 A-14 City of Rancho Palos Verdes Population Growth Trends - 1980 to 2013"""""""""""A-20 A-15 City of Rancho Palos Verdes Civilian Labor Force and Employment Characteristics For Population 16 Years and Over: 2000 and 2010........................................................A-20 A-16 City of Rancho Palos Verdes Share of Regional Housing Needs January 1, 2014 — October 1, 2021 A-21 A-17 City of Rancho Palos Verdes Sites Inventory and Analysis for Above Moderate Income Housing Units- February 2013-------------------------------------------------------------------------------------------A-22 A-18 City of Rancho Palos Verdes Size (SF) of Second Unit Projects-----------------------------------A-23 A-19 City of Rancho Palos Verdes Monthly Rents and Rent per Square Foot of 1-Bedroom Apartment Units..............................................................................................A-23 A-20 City of Rancho Palos Verdes Sites Inventory and Analysis for Lower Income Housing Units— February 2013.........................................................................................A-24 A-21 Los Angeles County: Lower Income (60% of Median Income)Affordable Housing MonthlyRents: 2013-----------------------------------------------------------------------------------------------------------A-27 A-22 Building Valuation Data (BVD) Construction Costs per Square Foot for Residential Construction A-29 ..................................................................................................... A-23 Average Mortgage Rates Weekly Survey of 20 Southland Lenders— As of December 26, 2012------------------------------------------------------------------------------------------------- A-30 A-24 City of Rancho Palos Verdes Conventional Loan Denial Rates by Census Tracts— 2011 A-31 ......................................................................................................... A-25 City of Rancho Palos Verdes FHA/VA Loan Denial Rates by Census Tracts — 2011 A-32 A-26 City of Rancho Palos Verdes Reasons for Loan Denial by Type of Loan — 2011.........A-33 A-27 City of Rancho Palos Verdes Apartment Rent Survey December 2012........................A-34 A-28 City of Rancho Palos Verdes Summary of Home Sales: 2012---------------------------------------A-35 A-29 City of Rancho Palos Verdes Homes Sales 1/1/2012-12/17/2012------------------------------- A-36 A-30 Single-Family Residential Development Standards.........................................................A-40 A-31 Multiple-Family Residential Development Standards .. ... ...............A-40 .. .................................................... ...... .... ... . .... .. A-32 City of Rancho Palos Verdes 2008-2014 Housing Element Evaluation of the Appropriateness of Goals and Policies.............................................................................A-57 A-33 City of Rancho Palos Verdes 2008-2014 Housing Element Effectiveness....................A-61 A. INTRODUCTION ➢ Housing Needs Assessment ➢ Sites Inventory and Analysis ➢ Housing Market Constraints and Analysis ➢ Governmental Constraints Analysis ➢ Progress Report The Housing Needs Assessment (pages A-2 to A-21) discusses: ➢ Existing Needs (housing condition, cost burdened, crowding, at risk housing) ➢ Special Needs (elderly, disabled, large families, farmworkers, female householders, and homeless ➢ Projected Needs (new construction) The Sites Inventory and Analysis (pages A-21 to A-24) describes the sites that can accommodate the need for lower-income, moderate-income and above moderate-income housing. The Housing Market Constraints Analysis (pages A-25 to A-34) describes the following components of housing costs: ➢ Land ➢ Construction ➢ Financing ➢ Existing home sales The Governmental Constraints Analysis (pages A-35 to A-54) describes actual and potential constraints on housing production and improvement such as: ➢ Land use controls ➢ Building codes and their enforcement ➢ Site improvements ➢ Fees and exactions required of developers ➢ Local processing and permit procedures ➢ Constraints on housing for persons with disabilities ➢ Constraints on meeting regional share housing needs The Progress Report (pages A-54 to A-61) describes the appropriateness of the goals and policies of the 2008-2014 Housing Element and the progress made toward implementation of the programs included in the prior element. B. HOUSING NEEDS ASSESSMENT 1. INTRODUCTION AND SUMMARY In addition to the Introduction and Summary, the Housing Needs Assessment describes the following: Part B - housing characteristics including the number and types of housing units and the condition of housing. Part C — household characteristics including the number of households, level of payment compared to ability to pay, and overcrowding. Part D - an analysis of existing affordable housing developments at risk of converting to market rate housing during the next 10 years. r Part E - an analysis of special housing needs experienced by populations such as the elderly; persons with disabilities including those with developmental disabilities; large families; farmworkers; families with female heads of households; and families and persons in need of emergency shelter. Part F - an analysis of population and employment trends and of projections of existing and projected housing needs for all income levels. The existing and projected needs include the City's share of the regional housing need. Key findings of the Housing Needs Assessment include: Housing and Household Characteristics and At-Risk Housing 16,221 housing units comprise the existing housing stock Single-family detached homes comprise about 77% of the existing housing stock ➢ About 400 housing units need rehabilitation and 10 need replacement Of the occupied housing units, 80.2% are owner-occupied and 19.2% are renter occupied ➢ About 1,900 lower income households are cost burdened and 1,500 are severely cost burdened ➢ More lower-income owners (about 1,200) than renters (about 700) experience housing costs more than they cannot afford 191 households are overcrowded and renters comprise the majority of crowded households The City does not have an affordable multifamily rental housing complex potentially at-risk of converting to market rate housing Special Housing Needs 9% of elderly owners (555/6,040) and 27% of elderly renters (194/723 are cost burdened —that is, paying more than they can afford for housing ➢ About 3,300 disabled persons live in Rancho Palos Verdes The elderly have the highest rate of disabilities as 22% of all people 65 years of age or older report one or more disability 247 developmentally disabled residents are served by the Harbor Regional Center r Mental retardation/intellectual disability is the most prevalent condition experienced by the City's 247 residents ➢ 10% of the large family owners (109/1,087) and 13.5% of large family renters (40/297) are cost burdened There are no farmworker jobs located within Rancho Palos Verdes ➢ There are 9 residents employed in the farming related industries About 3,300 female householders live in Rancho Palos Verdes, which is about 20% of all the City's householders > About 1,200 female householders live with a family and 1,900 live alone The City's homeless estimate is 1 person. Projected Housing Needs SCAG's 2012 RTP Forecast shows an increase of 100 persons and 100 households between 2008 and 2020 SCAG's 2012 RTP Forecast shows an increase in employment of 400 jobs between 2008 and 2020. ➢ 31 housing units is the City share of the regional housing need, which includes 13 units for lower income households 2. HOUSING CHARACTERISTICS Part B provides information on the: Existing Housing Stock by Occupancy Status ➢ Numbers and Types of Housing Units a. Existing Housing Stock by Occupancy Status In January 2013, 15,602 housing units were occupied while 619 dwellings were vacant. The total housing stock is comprised of 16,221 housing units, which is an increase of 512 dwellings since the April 2000 Census. The occupancy status and total housing stock in 2013 is slightly higher than reported in the April 2010 Census. Table A-1 reports the detailed statistics. Table A-1 City of Rancho Palos Verdes Housing Stock by Occupancy Status April 2000, April 2010 and January 2013 OccupancyNumber ofji Number of a s ' � e Occupied 15,256 15,561 15,602 Vacant 453 618 619 Total 15,709 16,179 16,221 Percent Vacant 2.88% 3.82% 3.82% Source: Census 2000 Summary File 1 (SF 1), DP-1 Demographic Profile, Housing Occupancy 2010 Census Summary File 1, DP-1 Demographic Profile, Housing Occupancy State of California, Department of Finance, E-5 Population and Housing Estimates for Cities, Counties, and the State, 2011 and 2012, with 2010 Benchmark Sacramento, California, May 2013. Table construction by Castaneda &Associates b. Numbers and Types of Units The composition of the housing stock in 2013 is about the same as reported by the April 2010 Census. Single-family detached homes comprise just over three-fourths (77%) of the housing stock. Housing units in multi-family structures of five or more dwellings comprise 14.5% of the housing stock. The housing stock contains a few mobile homes. Table A-2 reports the detailed data. Table A-2 City of Rancho Palos Verdes Housing Stock by Type of Unit April 2010 and January 2013 . . 1 unit, detached 12,510 77.3% 12,518 77.1% 1 unit, attached 1,024 6.3% 1,024 6.3% 2 to 4 units 301 1.9% 301 1.9% 5+ units 2,319 14.3% 2,353 14.5% Mobile homes* 25 .2% 25 .2% Total 16,179 100.0% 16,221 100.0% *A mobile home park is not located in Rancho Palos Verdes. It is assumed these mobile home units are dispersed throughout the City. State of California, Department of Finance, E-5 Population and Housing Estimates for Cities, Counties, and the State, 2011 and 2012, with 2010 Benchmark Sacramento, California, May 2013. Table construction by Castaneda &Associates c. Condition of the Existing Housing Stock HCD guidance indicates that housing that is 40+years old — built before 1970 -- is an indicator of the maximum housing rehabilitation need. Table A-3 shows the age of the housing stock. About 10,400 housing units were constructed before 1970, a number that probably overstates dramatically the actual housing rehabilitation need. In 2000 a housing condition survey found that about 700 housing units were in need of rehabilitation. About 80% of the 700 housing units had a Moderate 3 Rehabilitation Need — that is, replacement of a deteriorated roof. Only nine housing units had a Major Rehabilitation Need — that is, several minor and moderate level repairs. Taking into account the home improvements made between 2000 and 2007, Census 2010 age of housing data, and estimates of the prior Housing Element, the City's housing rehabilitation need in 2007 was estimated to range from 300 to 500 housing units. Between 2007 and 2012, 42 homes were rehabilitated through CDBG-funded deferred loans and grants. During this same time period, about 300 homeowners obtained financing for home improvement loans. It is not known if the loan proceeds were expended on addressing housing rehabilitation needs, remodeling, or non-structural improvements. Based on all of the above, the 2012 estimate of housing units in need of rehabilitation is about 400. Table A-3 City of Rancho Palos Verdes Age of Housing Stock by Year Built —2010 2005 or later 145 .90% 2000 to 2004 226 1.41% 1990 to 1999 607 3.75% 1980 to 1989 853 5.27% 1970 to 1979 3,922 24.24% 1960 to 1969 6,448 39.85% 1950 to 1959 3,584 22.15% 1940 to 1949 193 1.19% 1939 or earlier 201 1.24% Total 16,179 100.0% Note: The American Community Survey was used to compute the percentage of units in each age cohort. The ACS percentages then were applied to the 2010 Census count of units [3,703] to estimate the number of housing units by year structure built. Source: 2008-2010 American Community Survey 5-Year Estimates, Table B25034, Year Structure Built Table construction by Castaneda &Associates Housing that is beyond reasonable repair or in a dilapidated condition usually requires replacement, not rehabilitation. Often, housing lacking complete plumbing and/or kitchen facilities is an indicator of replacement needs. HUD estimates that 170 housing units are lacking complete plumbing or kitchen facilities. The 2009-2011 American Community Survey estimates 104 dwellings are lacking complete plumbing facilities and 476 are lacking complete kitchen facilities. All of these estimates seem to overstate the magnitude of the housing replacement need. In 2000, about 10 dwellings were in such poor physical condition that they merited replacement instead of rehabilitation. Over the years some of these dwellings may have been replaced with new housing and other dwellings may have deteriorated to the degree they ought to be replaced. Therefore, the 2012 estimate of housing units in need of replacement is 10. 3. HOUSEHOLD CHARACTERISITICS Part 3 examines the following household characteristics: ➢ Tenure — owners and renters ➢ Level of payment compared to ability to pay ➢ Overcrowding a. Tenure— Owners and Renters Tenure refers to whether housing units are occupied by owners or renters. Census 2010 reports 15,561 occupied housing units — 12,485 owners (80.2%) and 3,076 renters (19.8%). Table A-4 shows that the majority of households 35+ years of age are owners. Conversely, the younger households (15 to 34 years of age) are predominantly renters. Table A-4 City of Rancho Palos Verdes Tenure by Age of Householder 15 to 24 years 32 0.3% 62 2.0% 94 0.6% 25 to 34 years 193 1.5% 316 10.3% 509 3.3% 35 to 44 years 1,354 10.8% 745 24.2% 2,099 13.5% 45 to 54 years 3,010 24.1% 932 30.3% 3,942 25.3% 55 to 64 years 2,652 21.2% 425 13.8% 3,077 19.8% 65 years and over 5,244 42.1% 596 19.4% 5,840 37.5% Total 12,485 100.0% 3,076 100.0% 15,561 100.0% Source: Census 2010, Summary File 1, Table QT-H2: Tenure, Household Size and Age of Householder Table construction by Castaneda &Associates b. Level of Payment Compared to Ability to Pay Level of payment compared to ability to pay measures the number and percentage of households who are paying more than they can afford for housing. This problem is referred to as "overpaying" or "cost burdened." For lower income households, overpaying occurs when they pay 30% or more of their income on housing costs. "Severe" overpaying is when lower income households spend 50% or more of their income on housing costs. 1. 2013 Income Limits for Income Groups Table A-5 shows the 2013 household income limits for four income groups, adjusted by household size— ➢ Extremely low income <30% of the LA County median household income Low income 30%-50% of the LA County median household income Lower income 50%-80% of the LA County median household income Moderate income 80%-120% of the LA County median household income The income limits are important because they determine eligibility for City programs that provide rehabilitation financial assistance to owners and renters. Table A-6 shows the annual income and monthly income for a 3-person household in each of the four income groups. For instance, the monthly income of a lower-income 3 person household ranges between $3,205 and $5,062. Based on 30% of income expended on housing costs, such households could afford monthly payments in the range of$961 to $1,518. 2. Cost Burdened and Severely Cost Burdened Owners and Renters Overpaying is often cited as one of the major problems confronting the lower income population. Table A-7 shows that about 1,900 lower income households are cost burdened and about 1,500 are severely cost burdened. More lower-income owners (about 1,200) than renters (about 700) experience housing costs exceeding their ability to pay. SCAG estimates, based on American Survey data, that a total of 5,583 households are cost burdened — 1,319 renters and 4,264 owners. Table A-5 Los Angeles County 2013 Annual Income Limits Adjusted by Household Size 1persMi . .blana + - . 1 person $17,950 $29,900 $47,850 $54,450 2 ons $20,500 $34,200 $54,650 $62,200 3 persons $23,050 $38,450 $60,750 $70,000 4 persons $25,600 $42,700 $68,300 $77,750 5 persons $27,650 $46,150 $73,800 $83,950 6 persons $29,700 $49,550 $79,250 $90,200 7 persons $31,750 $52,950 $84,700 $96,400 8 persons $33,800 $56,400 $90,200 $102,650 Source: California Department of Housing and Community Development, Year 2013 Income Limits, February 25, 2013 Table construction by Castaneda &Associates Table A-6 Los Angeles County Income Limits for a 3-Person Household . . Extremely Low less than $23,050 less than $1,920 Very Low $23,051-$38,450 $1,921-$3,204 Lower $38,451-$60,750 $3,205-$5,062 Moderate $60,751-$70,000 $5,063-$5,833 Above Moderate $70,001+ $5,834+ Source: Table A-5 Table construction by Castaneda &Associates Table A-7 City of Rancho Palos Verdes Lower Income Households Cost Burdened and Severe Cost Burdened by Tenure: 2005-2009 CHAS Me . Owner 1,194 925 77.5% Renter 719 595 82.8% Total 1.913 1,520 79.5% Source: U.S. Department of Housing and Urban Development, 2005-2009 CHAS (Comprehensive Housing Affordability Strategy) Table construction by Castaneda &Associates 3. Extremely Low Income Cost Burdened and Severely Cost Burdened Owners and Renter Extremely low income (ELI) households are those whose income is less than 30% of the Los Angeles County median household income. An extremely low income 3-person household is one whose annual income is less than $22,800 or less than $1,900 per month. (Refer to Table A-5.) HUD CHAS data estimates there are 554 extremely low income households who are cost burdened — 329 owners and 225 renters. About 93% (305/329) of the owners and 100% (225/225) of the renters are severely cost burdened. The CHAS data indicates that the total number of ELI households is 980 (625 owners and 355 renters). The elderly and small related families comprise about 46% and 34% of the cost burdened owner households. Small related families comprise 56% of all cost burdened renter households. 4. Housing Options and Resources Housing options for cost burdened owners involve reducing housing and non-housing costs to a more affordable level. For some of these households, re-financing to lower monthly loan payments may be an option. However, it is possible that many of these owners are under water — their homes having a value less than the mortgage loan owed. Therefore, they do not have a re-financing option available to them. It also may be possible that some owners could rent a bedroom as a means of increasing their monthly income. Housing options for cost burdened renters include the market rate and rent restricted apartments. Apartment vacancies and turnover is rare in Rancho Palos Verdes. Some renters may apply for Section 8 rental assistance and be placed on the County of Los Angeles Housing Authority's waiting list. c. Overcrowding Overcrowding is one result of the shortage of interior living space. Overcrowding reflects the financial inability of households to buy or rent housing units having enough space for their needs. Consequently, overcrowding is considered a household characteristic instead of a housing structural condition. An "overcrowded" housing unit does not necessarily mean it is in inadequate physical condition. Overcrowding also may be a temporary situation since some households will move to larger housing units to meet space requirements. HUD CHAS provides estimates of the number of occupants per room based on the 2005-2009 American Community Survey (ACS). The following definitions apply to this topic: Occupants per room is obtained by dividing the number of people in each occupied housing unit by the number of rooms in the unit. The figures show the number of occupied housing units having the specified ratio of people per room. Although the Census Bureau has no official definition of crowded units, many users consider units with more than one occupant per room to be crowded. For each unit, rooms include living rooms, dining rooms, kitchens, bedrooms, finished recreation rooms, enclosed porches suitable for year-round use, and lodger's rooms. Excluded are strip or pullman kitchens, bathrooms, open porches, balconies, halls or foyers, half-rooms, utility rooms, unfinished attics or basements, or other unfinished space used for storage. A partially divided room is a separate room only if there is a partition from floor to ceiling, but not if the partition consists solely of shelves or cabinets. Table A-8 shows there are almost 200 crowded households. Of this total, about 95% are "crowded" and 5% are "severely crowded." Renters comprise the majority of crowded households. However, crowding is not a large problem as only about 1.2% of all households are crowded. Table A-8 City of Rancho Palos Verdes Crowding (Households with More than One Occupant Per Room) by Tenure 1.01 to 1.50 90 91 181 occupants per room 1.51 or more 0 10 10 occupants per room Total 90 101 191 Source: U.S. Department of Housing and Urban Development, 2005-2009 CHAS (Comprehensive Housing Affordability Strategy) Table construction by Castaneda &Associates Crowded households are an indicator of the need for an increase in living space, rooms, and/or bedrooms. Under fair housing law, the occupancy limits are 2 persons per bedroom plus one more person. Thus, a 2-bedroom unit can accommodate five people and a 3-bedroom unit can accommodate seven people. Two- and three-bedroom units comprise the majority (71%) of the housing units found in the City's apartment communities. 4. AT-RISK HOUSING ASSESSMENT At-risk housing refers to multifamily rental housing complexes that receive governmental assistance and which can change to market rate housing by 2024. The City has no rental housing at risk of conversion to market rate housing during the 2014-2024 period. There are seven owner affordable housing units located within the Villa Capri development (Tract No. 44239). The units were set-aside for families having annual incomes less than the City's median income. The seven affordable units cannot be converted to market rate housing until 2019. Four new affordable housing units were developed as a part of the Trump National Golf Club. These units are affordable for 30 years from the date of final permit, which happened on January 14, 2005. Thus, they are affordable until 2035. In 2009, the City approved the Crestridge Senior Affordable Housing project, also known as Mirandela. A total of 33 lower income units were approved to accommodate extremely low, very low and low income housing units. The project was completed and occupied in 2010 and has a 55-year affordability term. 5. SPECIAL HOUSING NEEDS Special housing needs refer to the needs of the following populations: ➢ Elderly ➢ Persons with disabilities ➢ Persons with developmental disabilities ➢ Large families ➢ Farmworkers ➢ Families with female heads of household ➢ Families and persons in need of emergency shelter a. Elderly Elderly special housing needs include, but are not limited, to: ➢ Affordable housing ➢ Units with accessibility modifications ➢ Units with special accommodations for live-in caretakers ➢ Housing developments that provide on-site supportive services ➢ Assistance in locating housing or in securing shared housing ➢ Housing located near transportation, shopping and medical services The special housing needs of seniors are unique because of the aging process. The housing needs of seniors are often the result of the age, gender, health, and economic status of elderly couples and individuals. A County study of senior housing needs explained that: Due to the economic downturn and general cost of living increases, seniors are the most vulnerable as they move into their retirement years with the hopes of using their important property asset to finance their golden years. Unfortunately this plan does not always work out. The needs assessment survey analyzed how seniors were affected by energy/utility costs where they were living, and what specific housing challenges they encounter. 1 in 10 seniors (10%) reported having trouble paying rent. For Los Angeles County's seniors, the issues of housing affordability and the need for home maintenance services were prevalent. 25% of respondents reported needing help with minor home repairs. 10% had problems finding an apartment and 10% had problems paying rent. The list below describes the percent of survey respondents with a need: ➢ Affordability ✓ Has problems meeting mortgage/insurance/maintenance payments 7% ✓ Has problems meeting condominium fee payments 2% ✓ Has problems finding an affordable apartment 10% ✓ Has problems paying rent 10% Safety ✓ Has problems with sufficient lighting 3% ✓ Has problems with safety issues 5% Home maintenance ✓ Needs help with minor home repairs 25% ✓ Has problems with major homeowner repairs (plumbing/electrical) 17% ✓ Has problems with minor homeowner repairs (leaky faucets) 16% Overall housing needs were about the same for all ages of the older adult respondents. The oldest residents, in greatest proportions, reported home maintenance needs. General home safety issues were roughly equivalent across all groups. According to the 2010 Census, there are 6,763 elderly households (62+ years of age) — 6,040 owners ➢ 723 renters Table A-9 shows the number of cost burdened elderly households by tenure and income group. Table A-9 City of Rancho Palos Verdes Cost Burdened Elderly Households by Income Group and Tenure Extremely Low (0-30%) 205 80 285 Very Low (31-50%) 210 50 260 Low (51-80%) 140 64 204 Total 555 194 749 Source: U.S. Department of Housing and Urban Development, 2005- 2009 CHAS (Comprehensive Housing Affordability Strategy) Table construction by Castaneda &Associates The HUD CHAS data estimates that 749 elderly households are cost burdened — ➢ 555 owners ➢ 194 renters Therefore, 9% of elderly owners (555/6,040) and 27% of elderly renters (194/723) are cost burdened. While 555 elderly owners are overpaying, there are no ongoing programs to provide monthly financial assistance to such owners. Some homeowners may benefit from the City's housing rehabilitation programs and some may need financial counseling to reduce overpaying. Rental housing assistance for elderly renters is available from the Section 8 Housing Choice Voucher Program which is administered by the County of Los Angeles Housing Authority. However, no apartments surveyed in December 2012 have monthly rents below the Section 8 maximum rent ceilings. b. Persons with Disabilities Special housing needs may include, but are not limited, to: ➢ Affordable housing ➢ Units with accessibility modifications ➢ Units with special accommodations for live-in caretakers ➢ Housing developments that provide supportive services ➢ Units accessible to public transportation ➢ Assistance in locating housing or in securing shared housing ➢ Housing with design features that facilitate mobility and independence The majority of housing units in most communities lack features such as ramps, extra wide doors, raised toilets, hand rails, lowered counters, or slip-resistant floors that would make them suitable for, or readily adaptable, to people with mobility limitations and people using assistive technology. The majority of existing dwellings are inaccessible to people with a mobility impairment. Housing constructed after March 13, 1991 needs to comply with the accessibility standards of the Americans with Disabilities Act (ADA). Real estate property profiles indicate that none of the apartment communities were built after March 13, 1991. Most apartments were built in the late 1960s and early 1970s. The City contacted the State Independent Living Council (SILC). The SILC is presently conducting a Needs Assessment Survey of disabled people living in California. The survey seeks to determine the "areas of need" which are most important to disabled people. The "areas of need" listed in the survey include, but are not limited, to: ➢ Housing ➢ Transportation ➢ Emergency Services Health Care ➢ Health Insurance ➢ Personal Assistance Services ➢ Accessibility The survey also asks respondents to indicate the county they live in, type of disability or disabilities, gender, age and ethnicity. The survey results will be published in the next few months. Every three years the SILC conducts a statewide needs assessment study to inform the development of the triennial State Plan for Independent Living (SPIL) required under Title 34 of the Code of Federal Regulation, Part 364.42. The most recent Needs Assessment Study was completed in 2009. With respect to unmet service needs, the 2009 Needs Assessment Study clearly shows that people with disabilities are severely impacted by economic circumstances. As the economy has soured and state budget cuts have been made, the following unmet needs have become exacerbated, affecting older adults, working-aged people with disabilities, and children with disabilities: Housing has become less affordable, especially near locations where independent living services are available; Public and other forms of transportation have become more costly and less accessible due to eligibility restrictions; r Health care co-pay and premium costs have increased and the availability of providers accepting Medi-Cal and Medicare has decreased; and ➢ Other unmet needs persist, such as the need for personal assistance services; information and referral; peer support; employment; and legal advocacy for children with multiple disabilities in the schools, the mental health system and the Medi-Cal payment system. According to the 2009 Needs Assessment Study: The top issue, housing, was often tied to public benefits in that the lack of housing vouchers, e.g., Section 8 vouchers and other rent subsidies, combined with low vacancy rates, meant that many consumers could not afford housing or faced financial hardships in other areas in order to pay for housing. Housing and transportation were intertwined because affordable housing was often located far from independent living services and other resources offered in urban centers. For some, a key housing concern was the lack of universal design, which in some respects resonates with the frequently expressed need for home repairs among older adults as they become increasingly frail and encounter trouble living in their standard-designed homes. The lack of accessible and affordable housing limited some ILCs from acting aggressively in transitioning nursing home residents and others into the community. Source: State Independent Living Council, 2009 Statewide Needs Assessment for People Living with Disabilities, 40 pages The City also reviewed the State Plan for Independent Living (Fiscal Years 2011-2013). Among the key goals of the Plan are the following: ➢ Advancing Olmstead ➢ Strengthen and Advance the Independent Living (IL) Network Improvement for the Underserved and Underrepresented Increasing Capacity for Educating Policy Makers y Improve Services to Older Individuals who are Blind Advancing Olmstead refers to creating an environment in which — People with disabilities choose from a variety of options for community-based living in housing, personal care assistance, transportation, with the aid of Assistive Technology. Olmstead refers to the June 1999 Supreme Court ruling in Olmstead v. L.C., 527 U.S. 581 (1999), where the Court found that, under certain circumstances, the Americans with Disabilities Act (ADA) requires states to provide community-based treatment for persons with disabilities. The decision provided that Title II of the ADA requires states to place, whenever possible, qualified individuals with mental disabilities in community settings rather than in institutions. Further, states were encouraged to develop "comprehensive, effective working plans" aimed at providing services to individuals with disabilities in the most integrated settings possible. Executive Order 13217 and the New Freedom Initiative, both briefly described below, also promote community-based initiatives for individuals with disabilities. President George W. Bush announced the New Freedom Initiative on February 1, 2001, as a means to promote full access to community life via the implementation of the Olmstead Decision. This initiative was part of the Administration's efforts to remove the barriers to community living that are present in the lives of persons with disabilities. It proposed six broad objectives: ➢ increase access to assistive and universally designed technologies; ➢ expand educational opportunities; ➢ promote homeownership; ➢ integrate Americans with disabilities into the workforce; ➢ expand transportation options; and ➢ promote full access to community life. Executive Order 13217 (Community-Based Alternatives for Individuals with Disabilities), signed by President Bush on June 18, 2001, directs federal agencies to work with states to ensure compliance with the Olmstead Decision and the ADA. The Executive Order has a wider scope than the Olmstead Decision by targeting all persons with disabilities, rather than only those with mental disabilities. In addition, the Executive Order directed the Department of Housing and Urban Development, the Department of Health and Human Services, the Department of Justice, the Department of Education, the Department of Labor, and the Social Security Administration to — ...evaluate the policies, programs, statutes and regulations of their respective agencies to determine whether any should be revised or modified to improve the availability of community-based services for qualified individuals with disabilities. The collaborative efforts are designed to ensure that HUD and the other designated agencies work together to integrate persons with disabilities into local communities. The SILC considered the potential impact on the independent living network of the unfunded federal mandate to serve "Olmstead transition candidates," that is, nursing home residents and other institutionalized persons who wish to return to the community. Center for Medicare and Medicaid Services data from the third quarter of 2009 suggest that slightly more than 25,000 Californians who are currently in nursing homes would like to be back in their respective communities. As it happens, that number is very close to the total number of consumers currently served each year by the entire ILC system. Were all 25,000 to move out of their nursing homes and to seek ILC services to enable them to do so, they would more than double the statewide consumer population currently served by ILCs — effectively inundating the service delivery system. The 2010 American Community Survey asks respondents about six different types of disabilities: Hearing difficulty— "deaf or [had] serious difficulty hearing." Vision difficulty— "blind or [had] serious difficulty even when wearing glasses." Cognitive difficulty — "serious difficulty concentrating, remembering, or making decisions." Ambulatory difficulty— "serious difficulty walking or climbing stairs." Self-care difficulty— "difficulty dressing or bathing." Independent living difficulty — "difficulty doing errands alone such as visiting a doctor's office or shopping." About 3,300 disabled persons live in Rancho Palos Verdes. The elderly have the highest rate of disabilities as about 22% of all people 65 years of age or older report one or more disability. Table A-10 shows the number and percentage of disabled persons by age group. Table A-10 City of Rancho Palos Verdes Disability Status of Civilian Non-institutionalized Population by Age Group — April 2010 ����Tota�] a . . < 5 years 1,540 0 0.0% 5-17 years 7,708 247 3.2% 18-64 years 22,740 978 4.3% 65 years + 9,628 2,108 21.9% Total 41,616 3,333 8.0% Note: Total population per Census is 41,643 and there are 27 institutionalized persons residing in Rancho Palos Verdes. Sources: 2010 Census DP-1 Profile of General Population and Housing Characteristics: 2010 Demographic Profile Data 2010 Census Summary File 1, Table QT-P13 Group Quarters Population by Sex, Age, and Type of Group Quarters: 2010 (institutionalized population by age group) American FactFinder, U.S. Census Bureau, 2009-2011 American Community Survey 3-Year Estimates, Table S1810, Disability Characteristics Table construction by Castaneda &Associates Disabled householders could benefit from programs that provide assistance to retrofit their homes. Low income disabled householders could benefit from rental assistance programs. c. Persons with Developmental Disabilities According to Section 4512 of the Welfare and Institutions Code: A "developmental disability" means a disability that originates before an individual attains age 18 years, continues, or can be expected to continue, indefinitely, and constitutes a substantial disability for that individual which includes mental retardation, cerebral palsy, epilepsy, and autism. This term shall also include disabling conditions found to be closely related to mental retardation or to require treatment similar to that required for individuals with mental retardation, but shall not include other handicapping conditions that are solely physical in nature. Many developmentally disabled persons, according to HCD, can live and work independently within a conventional housing environment. More severely disabled individuals require a group living environment where supervision is provided. The most severely affected individuals may require an institutional environment where medical attention and physical therapy are provided. Because developmental disabilities exist before adulthood, the first issue in supportive housing for the developmentally disabled is the transition from the person's living situation as a child to an appropriate level of independence as an adult. The State Department of Developmental Services (DDS) currently provides community based services to approximately 243,000 persons with developmental disabilities and their families through a statewide system of 21 regional centers, four developmental centers, and two community-based facilities. The Harbor Regional Center (HRC) — located in Torrance - is one of 21 regional centers in the State of California that provides point of entry to services for people with developmental disabilities. The center is a private, non-profit community agency that contracts with local businesses to offer a wide range of services to individuals with developmental disabilities and their families. The City is located with the HRC service area. About 0.59 percent of California's population is served by the DDS. This percentage applied to Rancho Palos Verdes' population yields an estimate of 247 residents who could be served by the HRC. Based on HRC's clients by diagnosis, the most prevalent condition among the City's 247 residents would be mental retardation/intellectual disability. The other most prevalent diagnosis — in rank order - would be autism, epilepsy, cerebral palsy, and other. However, individuals may have more than one diagnosis. According to HCD, there are a number of housing types appropriate for people living with a development disability: rent subsidized homes, licensed and unlicensed single-family homes, inclusionary housing, Section 8 vouchers, special programs for home purchase, HUD housing, and SB 962 homes. The design of housing-accessibility modifications, the proximity to services and transit, and the availability of group living opportunities represent some of the types of considerations that are important in serving this need group. The City's General Fund provides financial support to the REACH Program for Developmentally Disabled Persons. This project assists physically and developmentally severely disabled adults to be self-confident and improve their communication skills through a social interaction program with others in a relaxed learning atmosphere. d. Large Families HCD defines large families as consisting of five or more persons. Lower income, large families need more space, rooms and/or bedrooms at affordable costs. Affordability is key need of large families/households. Table A-11 shows the number of large family households by household size and tenure. According to the 2010 Census, there are 1,384 large family households — 1,087 owners and 297 renters. Table A-12 shows the number of cost burdened large family households by tenure and income group. The HUD CHAS data estimates that 149 large family households are cost burdened — 109 owners and 40 renters. Table A-11 City of Rancho Palos Verdes Large Families by Tenure - 2010 5 Persons 782 71.9% 211 71.0% 993 71.8% 6 Persons 214 19.7% 62 20.9% 276 19.9% 7 Persons+ 91 8.4% 24 8.1% 115 8.3% Total 1,087 100.0% 297 % 1,384 100.0% Source: Census 2010, Summary File 1, Table QT-H2: Tenure, Household Size and Age of Householder Table construction by Castaneda &Associates Table A-12 City of Rancho Palos Verdes Cost Burdened Large Families by Tenure and Income Group Extremely Low (0-30%) 4 15 19 Very Low (31-50%) 10 0 10 Low (51-80%) 95 25 120 Total 109 40 149 Source: U.S. Department of Housing and Urban Development, 2005- 2009 CHAS (Comprehensive Housing Affordability Strategy) Table construction by Castaneda &Associates In summary, 10% of the large family owners (109/1,087) and 13.5% of large family renters (40/297) are cost burdened. Two- and three-bedroom housing units can serve the needs of large families. Two- and three- bedroom units comprise the majority (71%) of the housing units found in the eight apartment complexes surveyed in December 2012. e. Farmworkers HCD guidance indicates that a housing element should estimate the number of permanent and migrant farmworkers within the community. A farm worker is -- r A person who performs manual and/or hand tool labor to plant, cultivate, harvest, pack and/or load field crops and other plant life. A person who attends to live farm, ranch or aquacultural animals including those produced for animal products." [Source: State of California, Employment Development Department, Labor Market Information Division Occupational Definition] Because of their predominantly low incomes, housing affordability is an acute need for farmworkers. The City has no land devoted to the production of field crops and/or other plant life. Likewise, there is no land used for animals. As a result, there are no farmworker jobs located in Rancho Palos Verdes. There may be persons residing or "housed" in the City who are farmworkers at locations outside the municipal boundaries. According to the 2007-2011 American Community Survey nine residents were employed in the agriculture, forestry, fishing, hunting and mining industry all in management occupations. In 2000, 37 residents were employed in that industry. The housed "farmworkers" who may reside in the City would live in a household and occupy a housing unit. As such, they would be among the existing households counted as part of the CHAS housing needs, and estimates of existing and projected housing needs produced by SCAG. Consequently, the resident low-income "farmworker" households — if any -- would be included among all the households. That is, the resident farmworker housing needs would be counted as part of the lower income households experiencing problems of overpaying, overcrowding, and living in substandard housing. f. Female Householders Table A-13 shows that slightly more 3,300 female householders live in the City, which represents about 20% of all householders. About 1,200 female householders live with a family and almost 1,900 live alone. About 39% of all female householders are 65 years of age or older and live alone. Table A-13 City of Rancho Palos Verdes Female Householders by Tenure— 2010 Family, No Husband 841 377 1,218 36.6% Living with others 165 75 240 7.2% Living Alone <65 Years 383 174 557 16.8% 65 Years+ 1,051 259 1,310 39.4% Subtotal Living Alone 1,434 433 1,867 56.2% Total 2,440 885 3,325 100.0% Percent 73.4% 26.6% Source: 2010 Census Summary File 1 (SF 1), Table QT-H3 Household Population and Household Type by Tenure: 2010 Table construction by Castaneda &Associates Some important housing needs of female householders include: ➢ Affordable housing ➢ Housing developments that provide supportive services ➢ Assistance in locating housing or in securing shared housing ➢ Access to housing which accommodates children ➢ Access to housing which is designed for security and convenience ➢ Access to housing near parks and open space to serve the needs of female householders with children. Potential housing needs include rental assistance and assistance with home maintenance and repairs for owner female householders living alone. g. Families and Persons in Need of Emergency Shelter According to HUD, a person is considered homeless only when he/she resides in one of the places described below at the time of the count. An unsheltered homeless person resides in a place not meant for human habitation, such as cars, parks, sidewalks, abandoned buildings, or on the street. A sheltered homeless person resides in an emergency shelter or transitional housing for homeless persons who originally came from the streets or emergency shelters. City staff and the County Sheriff's Department occasionally see homeless persons as they drive through the City. An average of one homeless person is seen every seven months. There are neither encampments nor homeless sleeping in the City parks or cars. Consequently, there are no recurring long-term homeless persons in the City. Emergency shelters are a permitted use in the Commercial General (CG) district. When combined, the CG districts total 36.53 acres in size, all of which are currently developed with no vacant properties. Emergency shelters are defined as follows: Housing with minimal supportive services for homeless persons that is limited to occupancy of six months or less by a homeless person. No individual or household may be denied emergency shelter because of an inability to pay. 6. PROJECTED HOUSING NEEDS a. Population Trends and Projections Over the past 32 years, the City's population grew by 5,320 persons. The largest population gains happened in the 10 years between 1980 and 1990. Table A-14 shows the population trends during the past three decades. The population growth projections indicate modest gains. The SCAG 2012 RTP Forecast shows an increase of 100 persons and 100 households between 2008 and 2020 (12 years). b. Employment Trends and Projections Employment generates income, which leads to effective housing demand and housing choice. The labor force and employment characteristics in 2000 and 2010 are described in Table A-15. During the 10-year span, the labor force increased by 159 residents and employed workers declined by 587 workers. Consequently, the jobless rate grew from 2.6% to 6.5%. Unemployment weakens housing choice. The SCAG 2012 RTP Forecast shows an increase of 400 jobs between 2008 and 2020. Table A-14 City of Rancho Palos Verdes Population Growth Trends - 1980 to 2013 1980 36,577 1990 41,667 5,090 13.9% 5,090 13.9% 2000 41,145 -522 -1.3% 4,568 12.5% 2010 41,643 498 1.2% 5,066 13.8% 2013 42,114 471 1.1% 5,537 15.1% Source: U.S. Census of Population and Housing for years 1980, 1990, 2000 and 2010 State of California, Department of Finance, E-5 Population and Housing Estimates for Cities, Counties, and the State, 2011 and 2012, with 2010 Benchmark Sacramento, California, May 2012. Table construction by Castaneda &Associates Table A-15 City of Rancho Palos Verdes Civilian Labor Force and Employment Characteristics For Population 16 Years and Over: 2000 and 2010 Population 16 Years + 32,925 33,279 In the Labor Force 18,890 19,049 Employed 18,399 17,812 Unemployed 491 1,237 Unemployment Rate 2.6% 6.5% Source: 2000 Census, Table DP-3 Profile of Selected Economic Characteristics: 2000, Employment Status Population 16 Years and Over 2009-2011 American Community Survey 3-Year Estimates, Table DP-3: Selected Economic Characteristics, Employment Status Population 16 Years and Over Table construction by Castaneda &Associates c. Share of Regional Housing Needs 1. Citywide Share Pursuant to State law, SCAG has allocated to each city and county in the region it share of the regional housing need. The regional share includes new housing needed to - Accommodate household growth r Replace units lost from the inventory due to demolitions, fires and other causes ➢ Provide a healthy vacancy rate The City's share of the regional housing need for the period from January 1, 2014 to October 1, 2021 is 31 housing units. Table A-16 shows number of housing units needed for five income groups. Table A-16 City of Rancho Palos Verdes Share of Regional Housing Needs January 1, 2014— October 1, 2021 Extremely Low 4 12.9% Very Low 4 12.9% Low 5 16.1% Moderate 5 16.1% Above Moderate 13 42.0% Total 31 100.0% Source: Southern California Association of Governments, 5th Cycle Housing Needs Assessment Final Allocation Plan, 1/1/2014 — 101112021 2. Extremely Low Income Housing Need Four housing units are needed for the extremely low income households. Given their extremely low incomes, the most suitable housing option would be rent restricted apartments. The ELI households would not have the means to afford market rate housing and very deep subsidies would be required in owner-type housing units. C. SITES INVENTORY ANALYSIS 1. INTRODUCTION Government Code Section 65583(a)(3) states that a housing element must include: An inventory of land suitable for residential development, including vacant sites and sites having potential for redevelopment and an analysis of the relationship of zoning and public facilities and services to these sites. Government Code Section 65583.2(a) states that the inventory of land suitable for residential development— ...shall be used to identify sites that can be developed for housing within the planning period and that are sufficient to provide for the jurisdiction's share of the regional housing need for all income levels...." HCD guidance indicates: The purpose of the land inventory is to identify specific sites suitable for residential development in order to compare the locality's new construction need by affordability category with its residential development (total supply) capacity. 2. SITES TO ACCOMMODATE THE CITY'S SHARE OF THE REGIONAL HOUSING NEED Government Code Section 65583.2(c) states: "...a city or county shall determine whether each site in the inventory can accommodate some portion of its share of the regional housing need by income level during the planning period." a. Sites to Accommodate the Above Moderate Income Housing Need Table A-17 shows that the above moderate income housing need can be accommodated by 116 housing units on four sites. Table A-17 City of Rancho Palos Verdes Sites Inventory and Analysis for Above Moderate Income Housing Units — February 2013 . _ slim 1 Crestridge 5601 9.76 acres 57 6.15 Senior Vacant Senior Crestridge (60 total) Housing Final EIR Housing Road prepared Project APN 7589- 013-009 Highridge 28220 1.25 acres 26 22.4 RM —22 Vacant Condominium Highridge (28 total) Approved Project Road. Trump Final Tract 108.8 28 Low RS-1/RPD Vacant Project Map 50667 acres Approved Nantasket APN 1.42 4 Low RS-3 Vacant Residential 7573-014- Approved Project 013 b. Available Sites to Accommodate Moderate Income Housing Need The moderate income housing need is five housing units. Second units will accommodate the moderate income housing need. During the five-year between 2008 and 2013, four second units have been built and two are approved but have not been constructed. The annual average is 1.2 second units. Based on this annual average, it is projected that nine to 10 second units will be constructed during the eight-year planning period (October 2013-October 2021). Table A-18 shows the square footage of each of the six second units. The average size of the second units is 743 square feet. Table A-19 shows the average per square foot rent of the one- bedroom apartments that were surveyed in December 2012. Table A-18 City of Rancho Palos Verdes Size (SF) of Second Unit Projects 6968 Alta Vista SFR Detached 825 108 Rockin horse SFR Attached 582 5431 Meadowdale SFR Attached 373 4400 Miraleste SFR Attached 500 5 Cayuse SFR Attached 1,073 5317 Rolling Ridge SGR Detached 1,107 Average 743 Table A-19 City of Rancho Palos Verdes Monthly Rents and Rent per Square Foot of 1-Bedroom Apartment Units Palos Verdes Terrace $1,495-$1,695 900-1100 $1.66-$1.54 Highridge $1,750-$2,200 900-1050 $1.94-$2.10 Knollbrook Falls $1,425 800-900 $1.58-$1.78 Palos Verdes Victoria $1,495-$1,700 900-1225 $1.66-$1.40 $1,685-$1,850 900-1225 $1.87-$1.51 The Villas at RPV $1,500-$1,900 775 $1.94-$2.45 Vista Catalina $2,025-$2,515 841-971 $2.41-$2.59 Second unit development is within the means of moderate income households as follows: ➢ Average rent is $1.87 to $1.91 per SF ➢ Median average rent is $1.89 per SF ➢ 743 SF X $1.89 per SF = $1,404 ➢ Monthly income @ housing expense ratio of 30% = $4,681 Annual income = $56,172 [$4,681 x 12) 2013 moderate income ceiling for a 2-person household = $62,200 The apartment market survey demonstrates that as the size of the apartment units increase, the average per square foot rent decreases. An apartment unit with 1,100 square feet currently has a market rent of $1.54 per SF. The larger second units would be affordable to moderate income households as follows: ➢ Average rent is $1.54 per SF ➢ Largest second unit is 1,107 SF ➢ 1,107 SF x $1.54SF = $1,705 ➢ Monthly income @ housing expense ratio of 30% = $5,683 ➢ Annual income = $68,196 [$5,683 X 12] ➢ 2013 moderate income ceiling for a 3-person household = $70,000 ➢ 2013 moderate income ceiling for a 4-person household = $77,500 Apartment units with 1,100 square feet were comprised of 2-bedroom units — Knollbrook Falls, Peninsula Apartments, and The Villas at Rancho Palos Verdes. Three- or four-person households can be accommodated in a 2-bedroom unit. c. Available Sites to Accommodate Lower Income Housing Need Table A-20 shows two sites that can accommodate five of the 13 lower income housing units. These include on-site inclusionary housing units of the Crestridge Senior Housing Project and the Highridge Condominium Project. Table A-20 City of Rancho Palos Verdes Sites Inventory and Analysis for Lower Income Housing Units — February 2013 Crestridge 5601 9.76 acres 3 6.15 Senior Vacant Senior Crestridge (60 total) Housing Housing Road Project APN 7589- 013-009 Highridge 28220 1.25 acres 2 22.4 RM —22 Vacant Condominium Highridge (28 total) Approved Project Road. The City will implement the Western Avenue Vision Plan/Adequate Sites Program to address the shortfall of sites to accommodate eight lower income housing units. 3. ENVIRONMENTAL CONDITIONS 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. The sea cliffs are the result of continuous erosion of the shoreline by wave action, and the coves and promontories of the shoreline are indicative of the presence of different geologic materials having varying degrees of resistance to this erosion. The absence of a bold sea cliff along sections of the southern shoreline is a condition attributable to recent geological episodes of landsliding, and the hummock ground surface of the adjacent landward areas indicates that several of these landslides encroached either well into, or across the coastal region. The deep, steep walled canyons crossing the coastal region have been cut by the intermittent flow of water that drains from higher parts of the Palos Verdes Peninsulas. Early development in the City (prior to incorporation), while consistent with recognized development standards of the time, did not provide the safety standards expressed through today's uniform building codes. Later development, occurring in the 1960's and 1970's, was generally limited to those areas of acknowledged geologic stability and removed from canyons and coastal bluff tops. Today, the City has found that redevelopment and improvement of these older portions has generally resulted in the need for new and in-depth geotechnical analysis and alternative foundation systems to meet the current and more comprehensive, safety standards of the Uniform Building Code. Intensification of existing residential densities in these areas has proven inappropriate, as geologic conditions have precluded such intensification. Additionally, the geomorphic processes responsible for the existing topography of the coastal zone are still active, and they will continue to modify the landscape in the future. Clearly, land- use planning in the coastal region of Rancho Palos Verdes must take into account the likelihood of occurrence and the severity of potential geologic hazards. The physical conditions existing in Rancho Palos Verdes present very real limitations to the development of residential land use. Nonetheless, the City has identified suitable residential sites to meet the construction need that was allocated by SCAG in the RHNA for the 2014-2021 time period (31 total housing units). 4. PUBLIC FACILITIES AND SERVICES Rancho Palos Verdes is a part of the South Bay Region. In mid-year 2003, the South Bay Cities Council of Governments completed an assessment of the South Bay cities infrastructure. [South Bay Cities Infrastructure and Services Capacity Assessment, Volumes One and Two, June 30, 2003] That infrastructure assessment found that the existing infrastructure capacity is more than sufficient to distribute the South Bay's projected water demands. In terms of supply, the Metropolitan Water District (Southern California's wholesale water agency) forecasts that it will be able to meet the imported water needs for the sub region through 2020. However, the District indicated that all of Southern California might be affected by limitations on imported water supply in the coming years. This may result in higher water prices and a heightened emphasis on developing local supplies, increasing use of recycled water, and conservation. Three central wastewater treatment plants serve the South Bay, each under the control of a regional sanitation district: the Joint Water Pollution Control Plant, the Hyperion Treatment Plant, and the Terminal Island Plant. South Bay wastewater generally receives primary and secondary treatment and is then discharged into the Pacific Ocean. Individual cities in the South Bay own and maintain the local sewer systems that transfer wastewater to sanitary district trunk sewers, which flow to the regional treatment plants. The volume of wastewater generated in the South Bay is expected to grow in step with population growth, or 12% by 2025. Capacity at the wastewater treatment plants is sufficient to handle expected growth. Public Works Department staff in most cities reports that local sewer capacity is also adequate to handle all expected growth in wastewater, although some cities have areas in which selected components (e.g. sewer mains, pumping stations) are undersized. The most critical issue affecting South Bay sewer systems in the future is deterioration due to age. Waste disposal planning for the South Bay is performed by Los Angeles County Department of Public Works. Their forecasts show that current landfill capacity will be exhausted by 2009. Los Angeles County, including the South Bay, will be able to accommodate the solid waste needs associated with forecast growth provided that the County is able to successfully expand in- county and out-of-county landfill capacity. Efforts by individual South Bay cities to expand waste diversion programs will be an important component in the sub region's efforts to manage demand for landfill disposal. Nine individual South Bay cities, and the sub region as a whole, have not achieved the state mandated goal of 50% diversion. In Rancho Palos Verdes residential sites are located in areas that are served by all utilities (i.e. water, sewer, and storm drains) and other public services (i.e. police, fire, and solid waste). Also, if needed, the existing facilities can be readily upgraded and/or extended onto the sites to serve housing development. The Rancho Palos Verdes storm drain system consists of pipes, inlets, outlets and natural drainage courses. During storms, the system collects and carries storm water runoff to the ocean and to other drainage systems beyond the City's boundaries. Because the City of Rancho Palos Verdes is built on hilly terrain with environmentally sensitive habitat, unstable soil, open space and bluff tops — it's critical that water be directed away from those areas and instead, flows directly to the ocean. Good storm drains help prevent erosion, flooding, landslides and reduce pollution in the ocean. The City wants to keep the ocean clean and minimize property damage and street closures during storms. About 90 storms drains run underneath the major streets that are used for commuting. The City established a Water Quality and Flood Protection Program (the "Storm Drain Program") in early 2005, after completion of a multi-year engineering and financial analysis that led to the resident Finance Advisory Committee's recommendation to establish a dedicated revenue source to repair the storm drain system. The Storm Drain Program was formed with a $2 million transfer into its "restricted funds". During mid- 2005, the City conducted a mail ballot election, and the property owners that use the storm drain system approved the imposition of a dedicated annual Storm Drain User Fee that they will pay and will be deposited into the Storm Drain Program fund to be used only for storm drain repairs. D. HOUSING MARKET CONSTRAINTS 1. INTRODUCTION Government Code Section 65583(a)(6) requires— An analysis of potential and actual nongovernmental constraints upon the maintenance, improvement, or development of housing for all income levels, including the availability of financing, the price of land, and the cost of construction. According to HCD: Although nongovernmental constraints are primarily market-driven and generally outside direct government control, localities can significantly influence and offset the negative impact of nongovernmental constraints through responsive programs and policies. Analyzing specific housing cost components including the cost of land, construction costs, and the availability of financing assists the locality in developing and implementing housing and land-use programs that respond to existing local or regional conditions. While the cost of new housing is influenced by factors beyond a locality's control, local governments can create essential preconditions (favorable zoning and development standards, fast track permit processing, etc.) that encourage and facilitate development of a variety of housing types and affordable levels. The requisite analysis includes: Land Costs — Estimate the average cost or the range of costs per acre for single- family and multifamily zoned developable parcels. Construction Costs — Estimate total construction costs which includes materials and labor. Availability of Financing - Consider whether housing financing, including private financing and government assistance programs, is generally available in the community. This analysis could indicate whether mortgage deficient areas or underserved groups exist in the community. In addition to the above, the market constraints analysis includes the cost of housing in terms of monthly rental rates and sales prices. Market constraints impede the private sector's ability to produce housing within the means of low-income and sometimes also moderate-income households. Affordable housing costs are set forth by several local, State and Federal programs. The Low Income Housing Tax Credit Program establishes affordable maximum rents based on: ➢ Maximum household income adjusted by household size Expected occupancy of the unit, regardless of the number of people who actually live in the unit ➢ Tenants at maximum income paying 30% of their income for housing Table A-21 shows the lower income maximum affordable housing monthly rents by unit type. Table A-21 Los Angeles County: Lower Income (60% of Median Income) Affordable Housing Monthly Rents: 2013 Studio 1.0 person $35,860 $896.50 One-Bedroom 1.5 persons $38,420 $960.00 Two-Bedroom 1 3.0 persons $46,110 $1,152.50 Three-Bedroom 4.5 persons $53,280 $1,330.00 Four-Bedroom 6.0 persons $59,430 $1,485.50 2. LAND COSTS Land costs are a major component of new housing production costs. The development industry typically categorizes land into three types, raw land, entitled land and finished lots. The values attributed to parcels of land increase through these three stages. Raw land is a vacant piece of land without any entitlements or improvements. Entitled land can range from having the appropriate zoning to having a recorded subdivision for the land. Again the values can increase the further a piece of land is in the entitlement process. Finally, land can be categorized as "finished lots". This is the final stage prior to the actual construction of a home. All grading has been completed and all infrastructure (streets, curbs, gutters, storm drains, sewers and utilities) have been installed. In most cases, this also means that all fees (except those associated with building permits) have also been paid. At this stage, the land is at its highest value. As of December 2012: 5 sales had closed with the least expensive being $500,000 to $600,000 for one-half acre lots ➢ There were two pending sales with prices in the range of$250,000 to $600,000 There are 15 lots on the active market with the least expensive having a sales price of $199,000 The basic conclusion is that land costs alone are beyond the means of lower income households. 3. CONSTRUCTION COSTS a. Components of Construction Costs Average construction costs are difficult to estimate because they can vary due to the following physical characteristics: Design type Construction type ➢ Quality ➢ Shape ➢ Location (mountains vs flatlands) [Source: California State Board of Equalization, Assessors' Handbook Section 531, Residential Building Costs, January 2010, page 4] The International Code Council (ICC) provides Building Valuation Data (BVD) for its members. The BVD table provides the "average" construction costs per square foot, which can be used in determining permit fees for a jurisdiction. The ICC states: ...it should be noted that, when using this data, these are "average" costs based on typical construction methods for each occupancy group and type of construction. The average costs include foundation work, structural and nonstructural building components, electrical, plumbing, mechanical and interior finish material. Table A-22 shows the BVD average per square foot construction costs for three types of buildings. Table A-22 Building Valuation Data (BVD) Construction Costs per Square Foot for Residential Construction . . _ R-2 Residential, multiple family 7$1247.24R-3 Residential, one- and two-family R-4 Residential, care/assisted living facilities $ 9. Private garage 1 $56.48 Source: International Code Council, Building Valuation Data (BVD), August 2012 Based on the above, the following are estimated construction costs for a - 1,000 SF housing unit in an apartment building $124,240 ➢ 1,500 SF single-home on a level lot $183,105 ➢ 400 SF garage for single family home $22,592 However, it is important to note that while this BVD table does determine an estimated cost of a building (i.e., Gross Area x Square Foot Construction Cost), this data is only intended to assist jurisdictions in determining their permit fees. This data table is not intended to be used as an estimating guide because the data only reflects average costs and is not representative of specific construction. The above costs are too low to be representative of construction costs. For example, the average cost of a low income housing tax credit unit built in Los Angeles County is $333,715. (Source: California Tax Credit Allocation Committee, Cost Containment Forums Report, August 23, 2011.) The preceding analysis is based on average costs and do not account for the unique features of land in Rancho Palos Verdes. According to the City's Building Official, the "average" construction costs are very low. In fact, construction costs actually range from $250 to $300 per square foot. The reasons are that the geology and expansive soils conditions often require that new construction have deepened footings, grade beams, caissons, removal and recompaction of soils and other conditions that increase construction costs. Affordable housing projects need to pay prevailing wages. This requirement typically drives up construction costs by 15% to 20%. The cost of construction alone exceeds the cost affordable to lower income households. Several factors contribute to the cost of construction including dwelling unit size, height (elevator may be required), terrain, slopes, quality, State laws, and profit motivations New affordable homes and apartments cannot be constructed without some public funding sources that subsidize the entire development and reduce the loan amount to that which can be supported by the affordable rents and ownership costs. The loss of redevelopment funds and the federal cutbacks of HOME funds have severely crippled efforts to produce affordable housing in the City. 4. AVAILABILITY OF FINANCING a. Financing Availability Based On Interest Rates For a sustained period of time, market mortgage interest rates have been either very reasonable or at historic lows. Table A-23 shows interest rates for two points in time. According to a weekly survey of 20 southland lenders, as of July 3, 2013, the average mortgage interest rates on all loans have increased during the past six months. For loans up to $417,000, a 30-year fixed rate loan is available at an interest rate of 4.43%, which is 1.03% higher than six months ago. For "jumbo" loans of more than $417,000, the interest rate is 4.61% for 30-year term, which is .76% higher than six months ago. It should be noted that not all would be homebuyers would qualify for the lowest interest rates available. The most favorable interest rates are available to loan applicants who have good FICO credit scores. (FICO refers to Fair Issac Corporation, a firm that developed the mathematical formulas used to produce FICO scores. A FICO score is a snapshot of an applicant's credit risk; the higher the score, the lower the risk to lenders. The FICO score is computed based on: payment history, amounts owed, length of credit history, new credit, and types of credit in use.) Table A-23 Average Mortgage Rates Weekly Survey of 20 Southland Lenders - As of July 3, 2013 011 Rates for loans up to $417,000 30-year fixed4.43%/.29 pt. 3.39%/.40 pt. 15-year fixed 3.53%/.29 pt. 2.72%/.36pt. Rates for loans of$417,00 and u 30-year fixed 4.61%/.18 pt. 3.85%/.39 pt. 15-year fixed 3.93%/.20 pt. 3.09%/.34 pt. Note: A pt. (point) is a term used by the lending industry to refer to the loan origination fee. One point is equal to 1% of the loan amount. Source: Compiled by HSH Associates, Financial Publishers b. Financing Availability Based on HMDA Data 1. Introduction HCD has advised cities that an understanding of the geographic areas and or groups without sufficient access to credit will help localities to design programs to address known deficiencies. The information that helps most to understand the geographic areas served by credit is the Home Mortgage Disclosure Act or HMDA data. HMDA requires lenders to disclose the number, amount, and census tract location of mortgage and home improvement loan applications. The HMDA data encompasses lender activity for conventional, FHA, home improvement loans and refinancing loans. The data identifies five types of action taken on a loan application: loan originated, application approved by the lender and not accepted by the applicant, application withdrawn, file closed for incompleteness and application denied. It is important to remember that the census tract location in the following tables refers to the property location on which a loan application was made. However, borrowers who live outside the City frequently make the loan applications, and the reasons for denial may be due entirely to the credit worthiness of the borrower, and not the characteristics of a census tract. Financing had 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 loan applications and approved loans has dropped as mortgage loan standards have tightened, including the unavailability of 100% financing, the need for larger down payments and verified income, and a requirement for a solid credit history including high FICO scores. 2. 2011 Loan Applications In calendar year 2011, 479 loan applications were made in the City – 92% for conventional loans and 8% for FHA insured loans. The loan denial rates were 12.5% for conventional loans and 7.5% for FHA insured loans. Compared to other communities, the denial rates are quite low. Denial rates vary within the City as four census tracts have conventional loan denial rates higher the 12.5% average. Only three applications for FHA insured were denied. Tables A-24 and A-25 shows the denial rates for conventional and FHA loans for each census tract. Table A-24 City of Rancho Palos Verdes Conventional Loan Denial Rates by Census Tracts– 2011 IFITO=4 -141911—L- 6703.01 49 2 11 62 17.7% 6704.03 20 2 4 26 15.4% 6704.05 23 3 2 28 7.1% 6704.07 25 4 3 32 9.4% 6704.11 29 1 0 30 0.0% 6704.13 30 5 5 40 12.5% 6704.14 25 1 6 32 18.8% 6706.00 51 4 7 62 11.3% 6707.01 51 6 12 69 17.4% 6707.02 51 2 5 58 8.6% Total 354 30 55 439 1 12.5% Source: Federal Financial Institutions Examination Council (FFIEC), Home Mortgage Disclosure Act (NMDA), Loan Application Register System (LARS) 2011. Table A-25 City of Rancho Palos Verdes FHA/VA Loan Denial Rates by Census Tracts — 2011 • . . . . - 11 no WiTzi - . - . . i 6703.01 1 1770 2 0.0% 6704.03 0 0 0 0.0% 6704.05 2 1 3 0.0% 6704.07 1 0 1 2 50.0% 6704.11 0 0 0 0 0.0% 6704.13 2 0 0 2 0.0% 6704.14 0 0 0 0 0.0% 6706 7 2 0 9 0.0% 6707.01 16 1 2 19 10.5% 6707.02 3 0 0 3 0.0% Total 32 5 3 40 7.5% Source: Federal Financial Institutions Examination Council (FFIEC), Home Mortgage Disclosure Act (NMDA), Loan Application Register System (LARS) 2011. 3. Home Improvement Loan Applications — 2011 Typically, loan applications for home improvement loans have higher denial rates than home purchase loans. Seventy three home improvement loan applications were made of which 62 were approved and 11 denied. The denial rate was 15%. The City's Home Improvement Program can assist some of these denied applicants through grants and deferred loans. These grants and deferred loans would not increase an applicant's debt-to-income ratio. In addition, the City can be somewhat more lenient than a private lender insofar as past credit history. 4. Reasons for Loan Denial — 2011 Table A-26 shows that 67 loan applications for conventional, FHA/VA and home improvement loans were denied in 2011. The four major reasons for loan denials were: Debt-to-income ratio, about 36%; Credit application incomplete, about 16%; Other about 13%; and Collateral, about 10%. According to HMDA: Debt-to-income ratio refers to "income insufficient for amount of credit requested and excessive obligations in relation to income" Credit application incomplete refers to loan application being submitted incomplete Other refers to length of residence, temporary residence and other reasons Collateral refers to "value or type of collateral insufficient." This may mean that the appraised value was lower than the price agreed to by seller and buyer. Source: Federal Financial Institutions Examination Council, A Guide to HMDA Reporting — Getting Right, January 1, 2008, Appendix A, Reasons for Denial Table A-26 City of Rancho Palos Verdes Reasons for Loan Denial by Type of Loan — 2011 Debt-to-Income Ratio 22 1 1 24 35.8% Employment History 1 1 1 3 4.5% Credit History 2 0 4 6 9.0% Collateral 6 1 0 7 10.4% Insufficient Cash 2 0 0 2 3.0% Unverifiable Information 3 0 2 5 7.5% Credit Application Incomplete 10 0 1 11 16.4% Mortgage Insurance Denied 0 0 1 0 1 0 0.0% Other 9 0 0 9 1 13.40/( Total 55 3 9 67 1 100.0% Source: Federal Financial Institutions Examination Council (FFIEC), Home Mortgage Disclosure Act (NMDA), Loan Application Register System (LARS) 2011. 5. MONTHLY HOUSING RENTS AND SALES PRICES Although the Housing Element Law and guidelines do not explicitly mention the price of existing housing, this potential constraint falls within the meaning of "nongovernmental" or market-driven barriers to affordability. The analysis also helps to show how the housing market impedes the application of housing programs such as rental assistance and down payment assistance programs. a. Apartment Rental Housing Market An apartment rent survey completed in December 2012 included eight complexes and 1,153 units. The bedroom distribution is as follows: ➢ Studios 7 ➢ 1-bedroom 330 ➢ 2-bedrooms 712 ➢ 3-bedrooms 104 ➢ Total 1,153 Two-bedroom units comprise 62% of all the apartment units surveyed. Table A-27 lists the monthly apartment rents. HUD's Section 8 Housing Choice Program offers rental assistance to extremely low and very low income families. The Section 8 rent limits (Fair Market Rents) are listed below: ➢ Efficiency Unit $911 ➢ 1 bedroom $1,101 ➢ 2 bedrooms $1,421 ➢ 3 bedrooms $1,921 Table A-27 City of Rancho Palos Verdes Apartment Rent Survey December 2012 Studio Units 3 $1,125-$1,175 4 $1,195 Subtotal 7 1-Bedroom Units 27 $1,425 147 $1,495-$1,700 28 $1,500-$1,900 21 $1,685 -$1,850 101 $1,750-$2,200 6 $2,025-$2,575 Subtotal 330 2-Bedroom Units 48 $1,550 42 $1,575-$1,650 59 $1,650 36 $1,695-$1,895 224 $1,745-$2,122 163 $1,900-$3,500 113 $2,300-$2,600 27 $2,445-$2,995 Subtotal 712 3 Bedroom Units 2 $1,995 13 $1,995-$2,025 12 $1,995-$2,050 12 $2,050-$2,500 24 $2,500-$3,300 41 $2,800-$3,600 Subtotal 104 All of the apartment units have monthly rents exceeding the Section 8 Fair Market Rents (FMRs). In effect, the rental assistance program is extremely difficult to implement in the City. [Fair Market Rents (FMRs) are primarily used to determine payment standard amounts for the Section 8 Housing Choice Voucher Program. They establish a ceiling for the maximum rents of apartment units that can be rented by families receiving Section 8 rental assistance. [FMRs are gross rent estimates. They include the shelter rent plus the cost of all tenant-paid utilities, except telephones, cable or satellite television service, and internet service. HUD sets FMRs to assure that a sufficient supply of rental housing is available to program participants. To accomplish this objective, FMRs must be both high enough to permit a selection of units and neighborhoods and low enough to serve as many low-income families as possible. The level at which FMRs are set is expressed as a percentile point within the rent distribution of standard quality rental housing units The current definition used is the 40th percentile rent, the dollar amount below which 40 percent of the standard-quality rental housing units are rented The 40th percentile rent is drawn from the distribution of rents of all units occupied by recent movers (renter households who moved to their present residence within the past 15 months). HUD is required to ensure that FMRs exclude non-market rental housing in their computation. Therefore, HUD excludes all units falling below a specified rent level determined from public housing rents in HUD's program databases as likely to be either assisted housing or otherwise at a below-market rent, and units less than two years old.] b. Housing Sales Prices Table A-28 shows the median sales prices and number of sales by type of home and number of bedrooms. The median sales prices increases as the number of bedrooms increase. Table A-28 City of Rancho Palos Verdes Summary of Home Sales: 2012 rel 9,11-11747111111 Single Family 2 Bedrooms or Less 12 $770,000 Single Family 3 Bedrooms 98 $810,000 Single Family 4 Bedrooms or More 217 $1,080,000 Attached Homes Condominiums 93 $418,000 Source: Pacific West Association of Realtors Multiple Listing Service (MLS). Table A-29 shows the detailed sales price distribution of 420 detached and attached homes that sold between January 1, 2012 and December 17, 2012 according to the Pacific West Association of Realtors Multiple Listing Service. The sales data show that existing homes are out of the financial reach of lower income households. The average marketing time for a home in Rancho Palos Verdes was just over three months at 95.2 days on the market. The vast majority of the borrowers obtained conventional financing. Table A-29 City of Rancho Palos Verdes Homes Sales 1/1/2012-12/17/2012 0 - $99,999 0 0 0 1 0 0 0 100,000 - $149,999 0 0 0 0 0 0 150,000 - $199,999 0 01 0 0 0 0 200,000 - $249,999 1 0 0 3 0 1 250,000 - $299,999 0 0 0 6 0 3 300,000 - $324,999 0 0 0 3 0 0 325,000 - $349,999 0 0 0 12 0 0 350,000 - $374,999 0 01 0 8 0 1 375,000 - $399,999 0 0 0 11 0 2 400,000 - $424,999 0 0 0 5 0 1 425,000 - $449,999 1 0 0 3 0 2 450,000 - $474,999 0 0 0 8 0 1 475,000 - $499,999 0 0 0 1 0 1 500,000 - $549,999 0 5 1 9 0 2 550,000 - $599,999 2 2 1 5 1 0 600,000 - $649,999 1 4 4 3 1 3 650,000 - $699,999 0 12 8 6 2 1 700,000 - $749,999 0 7 9 1 4 2 750,000 - $799,999 2 15 11 4 5 0 800,000 - $999,999 1 36 56 4 20 0 1,000,000 - $1,999,999 4 17 107 1 37 5 2,000,000 and over 0 0 20 0 16 4 Totals 12 98 217 93 86 29 Average Price 819.3 829.5 1267.8 470 1836.1 931.5 (In Thousands $) Median Price 770 810 1080 418 1290 699 (In Thousands $) E. GOVERNMENTAL CONSTRAINTS The Housing Element must include - "An analysis of potential and actual governmental constraints upon the maintenance, improvement, or development of housing for all income levels...." The required analysis includes seven governmental factors: ➢ Land use controls ➢ Building codes and their enforcement ➢ Site improvements ➢ Fees and exactions required of developers ➢ Local processing and permit procedures ➢ Constraints on housing for persons with disabilities ➢ Constraints on meeting regional share housing needs The purpose of the analysis is to find out if a standard or practice "...constitute(s) a barrier to the maintenance, improvement or development of housing." 1. ACTIONS TAKEN TO REMOVE CONSTRAINTS IDENTIFIED BY THE 2008-2014 HOUSING ELEMENT The 2008-2014 Housing Element identified governmental constraints that needed to be removed. Consequently, the adopted element included action programs to amend the Development Code with regard to the following: Emergency Shelters Transitional Housing Supportive Housing Single Room Occupancy Housing ➢ Reasonable Accommodation Procedure ➢ Density Bonus Ordinance a. Emergency Shelters Section 17.96.625 of the Development Code added an emergency shelter definition: Housing with minimal supportive services for homeless persons that is limited to occupancy of six months or less by a homeless person. No individual or household may be denied emergency shelter because of an inability to pay. Section 17.20.020 of the Development Code permits by right emergency shelters in the Commercial General (CG) District. b. Transitional Housing Section 17.96.2115 of the Development Code added the following transitional housing definition: Rental housing that in which residents stay longer than overnight, but not more than six months, and is exclusively designated and targeted for individuals and households at immediate risk of becoming homeless or transitioning from homelessness to permanent housing. Transitional housing is a permitted use in the single-family and multi-family residential zones. c. Supportive Housing Section 17.96.2095 of the Development Code added the following supportive housing definition: A facility that provides housing with no limit on length of stay, that is occupied by the target population, and that is linked to onsite or offsite services that assist the supportive housing resident in retaining the housing, improving his or her health status, and maximizing his or her ability to live and, when possible, work in the community. For purposes of this definition, "target population" means persons with low incomes having one or more disabilities, including mental illness, HIV or AIDS, substance abuse, or other chronic health conditions, or individuals eligible for services provided under the Lanterman Developmental Disabilities Services Act (Division 4.5 (commencing with Section 4500) of the California Welfare and Institutions Code) and may include, among other populations, adults, emancipated youth, families, families with children, elderly persons, young adults aging out of the foster care system, individuals exiting from institutional settings, veterans, and homeless people. Supportive housing is a permitted use in the single-family and multi-family residential zones. d. Single Room Occupancy Housing The Development Code was amended to make provisions for single room occupancy (SRO) housing. A section was added to the Development Code to provide for SRO housing, as follows: This section provides criteria for the development, operation and regulation of single- room occupancy facilities. These criteria ensure that single-room occupancy facilities are developed and operated on adequate sites, at proper and desirable locations with respect to development patterns, adjacent land uses, and the goals and objectives of the general plan and any applicable specific plans. Development standards were established for SRO housing. SROs are permitted through a CUP in the Commercial General (CG) zone district. e. Reasonable Accommodation Procedure The Development Code was amended to establish a reasonable accommodation procedure. Section 17.67.010 of the Development Code states: Pursuant to the federal Fair Housing Amendments Act of 1988 and the California Fair Employment and Housing Act, this chapter establishes formal procedures allowing individuals with disabilities and their representatives to request reasonable accommodations in the application of zoning laws and other land use regulations, policies and procedures when necessary to eliminate barriers to housing opportunities. A complete description of the procedure is found on pages A-51 and A-52. f. Density Bonus Ordinance Section 17.11.060 of the Development Code was amended on October 6, 2009 to be consistent with SB 1818 - Government Code Sections 65915-65918. The amendments addressed the percentage of affordable units required by income group to be eligible for the 20% bonus; sliding scale increases up to the maximum density bonus of 35%; concessions and incentives; parking standards; continued affordability; and other requirements of Sections 65915-65918. g. Licensed Residential Care Housing Licensed group homes serving six or fewer persons are permitted use in single-family and multi- family zones. Section 17.02.020 M of the Development Code states that such zones must permit "Any other use which specifically is required to be permitted in a single family residential district by state or federal law." h. Employee Housing Section 3 — Housing Program — includes an action program to enable the Development Code to comply with the Government Code requirements regarding employee housing. Employee housing is privately owned housing that is provided by an employer in connection with any work, whether or not rent is involved. 2. DESCRIPTION OF FACTORS FOUND NOT TO BE GOVERNMENTAL CONSTRAINTS a. Land Use Controls 1. Zoning Rancho Palos Verdes has six single-family residential designations and five multi-family residential designations. Tables A-30 and A-31 describe the development standards for the following: ➢ Lot Sizes ➢ Lot Dimensions ➢ Setbacks ➢ Maximum Lot Coverage ➢ Maximum Height ➢ Parking Requirements Table A-30 Single-Family Residential Development Standards MINIMUM SETBACKS''s'x MAXIMUM DISTRICT LOT OR CITY CREATED LOTS FOR LOTS CREATED PRIOR TO LOT MAXIMUM PARKING DIMENSIONS' FOR CITY CREATED LgTS INCORPORATION I ANNEXATION COVERAGE HEIG1iT'^ REQUIREMENT INTERIOR STREET FRONT INTERIOR STREET REAR I's than 5,000 s.f. AREA WIDTH DEPTH FRONT SIDE SIDE REAR SIDE SIDE ofhabiwblespace =2 enclosed ga- TTL rage spares BOTH ONE SIDES SIDE 5,000 s.f or more ofliabitable sp--c RS-A5 5 acres 2DO 300 20 30 10 20 20 20 5 10 15 635 16 -3—1-1- RS-1 nd,...lcRS-1 l acre 100 150 20 25 10 20 20 20 5 10 15 � 16 rage spa,. RS-2 20,000 sf 90 120 20 20 10 20 20 20 5 10 150"i 1 r; RS3 13,000 sf RO 110 20 20 10 _0 15 `0 5 10 15 'S9i 16 RS-4 IQOOO sf 1 75 100 1 20 1 20 1 10 1 20 15 1 20 10 15 50'n 16 RS-5 Sow sf h5 100 2n 2n 10 _0 13 2n 10 15 .-_•. 16 1. For an exist mg lot which does not meet these standards,see Chapter 17.84(Nanconfomrities). 2. lots of record,existing as of November 25,1975(adoption ofthis code),or within Fast view and existing as of January 5,1983(annexation),shall use these development swnhrds for minimum setbacks. 3. For description,clarification and exceptions,sce Chapter 17.48(tots,Setbacks,Open Space Area and Building Height). 4. Fora description of height measurement methods and the height variation process,see See tion 17.02.040 of this chapter.A height variation application shall be referred direr:tly to the planning commission for consideration,if any of the following is proposed: A.Any penton of a structure which excvxds sixteen(I6)feel in height-tend,closer than twenty-five(25)feet from the front or street-side property lime. B. The area of the structure which exceeds sixteen(16)feet in heighI(second story footprint)exceeds severity-6 ve percent(75%)of the exuding Inst story footprint area(residence and garage); and C. Siny percent(60)or num of an existing garage footprint is covered by a structure which exc h sinem(I6)feet in height(a second story). D.The purtion of a structure that exceeds sixteen feet in height is being developed as part of a new single-farri ly residence;or E. Based on an initial sitevisit,the director deter—me.,that any portion of a structure which is proposed to-coed sixteen(16)feet in height nuy xiymifuantly impair a view as defined in this chapter. S. For parking development standards,see Section 17.02.030(B).1-this chapter. 6. A garage with direct access;driveway from the stnvet ofaacess shall not be less Our twenty feet from the front or stree[-side property line,which ever is the street of access. 7. Exterior.sW ms to an upper story are prohibited,unless leading to amdlor connected to a common hallway,deck or entry rather than a speci fa;room. Table A-31 Multiple-Family Residential Development Standards MINIMUM LOT M�IMUM SETBACKS' OPEN SPACE MAX' PARKING SPACES SILL:AND DIMENSIDN HEI AREAGI.1Ta' REQUIREDJDUr M INE, SIRFEI a1 2+ LOTAREAI M(s£) WIDTH DEPTH 1•RONI' REAR 9'a B17RM BDRM M(sf) SIDE SIDE UNITS UNrI'S RM-6 7300 13,000 65 110' 25' lo" 25' 20' 45 30' 1 garage 2 garage spaces spaces RM-8 5400 1%000 65 110' 25' 10' 25' 20' 43 30' RM-10 4400 12,000 75 110' 2S HY Z. 20' 43 30' RM-12 3600 1$,000 75 110' 25' 10' 25' 20' 40 30' (+25%oftotal purling required) RM-22200D 20M 100 i10' 2S 10' 25' 20' 35 36' 1. For description,clarification and exceptions,see Chapter 17.48.(Lot%Setbacks,Open Space Area and Building Height). 2. For parking area development standards,see Chapter 1750.Any under-building parking structures must be completely enclosed or have openings screened from the public right-of--way and other affected views. In all RM Districts,twenty-frac percent of the required parking shall be provided as guest parking in addition to the standard parking requirements. Note: This table (A-31) is from Municipal Code Section 17.04.040. Consequently, it is not clear that parking requirements for RM-22 are 1 garage space per 0 to 1 bedroom units, 2 garage spaces for 2 or more bedroom units and an additional 25% of total parking for guests, which is what the table should describe. As such, prior to July 1, 2014, a code amendment will be processed by the City to address the ambiguity. The minimum lot sizes for single-family districts range from five acres to 8,000 square feet (almost 1/5 acre). The minimum lot sizes listed for multi-family developments could be translated to maximums of 6 to 22 units per acre for RM-6 through RM-22 designations. These are maximums and actual development potential is usually less due to factors such as the topography and configuration of the site, easements, and roadways. While most of the City is zoned and established at single-family residential densities, 16.4% of the existing housing stock is multi-family units. In fact, the City's housing stock contains 2,654 housing units in multi-family structures. In addition to the single-family and multi-family zones, the Institutional Zone accommodates housing since the Zone allows educational institutions, including colleges, to develop student housing with a CUP. With a CUP, the Institutional Zone also allows for homes for the aged, which may include age-restricted for-sale or for-rent residential developments provided that such a development includes a City-approved supportive service program. Mobile homes and manufactured homes are allowed by-right in the Single-Family Residential Zone. 2. Minimum Dwelling Unit Sizes The City does not impose minimum housing unit sizes based either on total square footage or square footage in terms of the number of bedrooms. 3. Design Criteria The City has not established architectural design criteria. With single-family developments, the City has a Neighborhood Compatibility analysis that has a similar function, whereby the City would compare the proposed development with the 20-closest homes in regards to architectural style, bulk/mass, structure size, open space, etc. This only applies to some single-family developments that meet a certain threshold. 4. Open Space Requirements Open space for single family homes is determined through a combination of minimum lot sizes, minimum setbacks, and maximum lot coverages. Section 17.04.040.D of the Development Code establishes the open space requirements for multiple family zones as follows: As part of the open space area required, all of the units shall have an appurtenant private patio, deck, balcony, atrium or solarium with a minimum area of one hundred fifty square feet, except that one bedroom unit shall have a minimum of one hundred thirty square feet of private open space. Such space shall have a configuration that would allow a horizontal rectangle of one hundred square feet in area, and no side shall be less than seven feet in length. Such space shall have at least one electrical outlet. Such space may count for up to thirty percent of the required open space area. 5. Parking Requirements Single-family homes with less than 5,000 square feet of habitable space are required to provide two (2) enclosed garage spaces. Single-family homes with 5,000 or more square feet of habitable space are required to provide three (3) enclosed garage spaces. Two-bedroom apartment units are required to have 2.25 parking spaces with one space completely enclosed in a garage. The requirement 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 by 20 feet). The costs for a one-car garage 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 major constraint to affordability. 6. Specific Plans Two Specific Plans guide residential uses. Specific Plan District I 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 to Chapter 17.72 for specified land uses. Specific Plan District IV encompasses all properties, which front on the west side of Western Avenue from and including 29019 to 29421 Western Avenue. This area is located between Specific Plan Districts II and III. 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. 7. Second Unit Development Standards Second units are permitted in all RS and RM zone districts. The development standards are described in Section 17.10 of the City's Development Code. The total floor area for a detached second unit shall not exceed 1,200 square feet. The total floor area for an attached second unit shall not exceed 30% of the floor area of primary residence floor area. The second unit must include one bathroom and one kitchen and is limited to a maximum of two bedrooms. A garage space must be provided. 8. Affordable Housing Land Use Controls To encourage and facilitate the development of affordable 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% of all units affordable to very low income households or to provide up to 10% of all units 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 of providing the required affordable housing units. The City Council established an in-lieu fee of $201,653 plus a 10 percent administrative fee per affordable unit required. Housing Impact Fee: In order to mitigate the impact of local employment generation on the local housing market, new nonresidential development or conversion of existing development to a more intense use, must make provision for housing affordable to low and very low households. This requirement applies to applications for the construction, expansion or intensification of nonresidential land uses, including but not limited to commercial projects, golf courses, private clubs, and institutional developments. Developers of non-residential projects must pay a residential impact fee as established by the City Council. The fee must be adequate to provide one low or very low affordable housing unit for each 10 employees to be generated by the nonresidential development. The City Council established an in-lieu fee of $1 per square foot of habitable residential structure. Projects that provide for very low and low-income housing are exempt from the housing impact fee. Density Bonuses for Affordable Housing: The City's density bonus incentives were updated in 2009 to be consistent with SB 1818. SB 1818, which took effect on January 1, 2005, requires all cities to adopt an ordinance that specifies how compliance with Section 65915-65918 will be implemented. 9. Moratoria and Prohibitions Against Multifamily Housing Developments The City has no moratoria or prohibitions against multifamily housing developments. The City does have a site ("Point View") located within the Landslide Moratorium Area (LMA). About 60 of the site's 95 acres are located within the LMA. This site, however, is zoned for single-family housing. (The moratorium boundary prohibits development of new residences with the exception of certain lots due to active landslide movement.) 10. Growth Controls, Urban Growth Boundaries The City does not have a "growth control ordinance" that limits the number of housing units that be constructed. In addition, the City does not have an "urban growth boundary" extending beyond the current incorporated area. The City is completely surrounded by the incorporated cities of Palos Verdes Estates, Rolling Hills, Rolling Hills Estates and Los Angeles and unincorporated territory. In summary, the above analysis demonstrates that the City's land use controls, second unit development standards and affordable housing incentives are not a constraint to the maintenance, improvement or development of housing. The City's land use controls will facilitate the development of housing for moderate-income and lower income households through the continued development of second units and implementation of affordable housing land use controls. b. Building Codes and Enforcement HCD guidance indicates - The element must describe the building code adoption and enforcement process, including identification of any local amendments to the Uniform Building Code (UBC) and how building code enforcement is carried out by the jurisdiction. The following is a list of the current code versions used by the City: ➢ 2010 California Green Building Standards Code r 2010 California Residential Code based on the 2009 International Building Code ➢ 2010 California Building Code based on the 2009 International Building Code 2010 California Plumbing Code based on the 2009 Uniform Plumbing Code 2010 California Mechanical Code based on the 2009 Uniform Mechanical Code ➢ 2010 California Electrical Code based on the 2008 National Electrical Code ➢ 2008 California Title 24 Energy Standards A city (or county) may make such changes or modifications in the requirements contained in the California Building Standards Code if the city (or county) makes findings that they are reasonably necessary because of local climatic, geological, or topographical conditions. Due to its unique climatic, topographical and geological characteristics, the City has adopted amendments to the CBC. These amendments include storm damage precautions, fire resistive roofing, specialized foundation requirements, and geological and geotechnical reports for the evaluation and elimination of hazards. The specialized foundation requirements apply only to the active landslide areas of Portuguese Bend Landside and Abalone Cove Landslide. The City does not consider these local amendments to the CBC to be more restrictive than is necessary to protect the public health and safety due to the hazards arising from the City's climate, topography and geology, and are not intended to act as constraints to the housing supply. The Building Division's focus is on construction safety through the implementation and enforcement of construction standards and codes. The building division functions include checking plans for compliance with all of the applicable codes, issuing building permits, and conducting inspections of the construction projects as they progress to ensure that the code standards are met and that the project is constructed in accordance with the approved plans. In addition, the Building Division coordinates with the City's geological consultants on the review of geology and soils reports for new construction projects The California Building Standards Code, as noted, was adopted by reference with only minor variations. The cost of new housing is not adversely impact by the adopted amendments. The Building Code and related Codes are considered to be the minimum necessary to protect the public health, safety and welfare. The Codes, which are based on the State Housing Law and uniform codes, are adopted by many cities throughout southern California and do not pose a constraint to residential development. c. On- and Off-Site Improvements HCD guidance indicates -: The element must also describe and analyze the impact of on- and off-site improvement standards including street widths, curb, gutter, and sidewalk requirements, landscaping, circulation improvement requirements and any generally applicable level of service standards or mitigation thresholds. 1. On-Site Improvements The following on-site improvements are required for new development: r All utility lines installed for new construction are to be placed underground from an existing power pole or other off-site point of connection. This requirement can be waived if the nature of the development makes such installations unreasonable or if there are existing overhead lines and the underground location is not consistent with a likely future utility "undergrounding" project. Single family additions or additions increasing gross floor area less than 25% are exempt. Underground cable television is to be installed in all new residential development. All mechanical equipment and all outside storage areas are to be screened from view of public areas and neighboring properties. All required front and street-side setback areas are to be landscaped. Two garage spaces, completely enclosed, are required for each single-family dwelling unit. Multiple family units are required to have one completely enclosed garage space per unit, with an additional one-third parking space for each unit with less than two bedrooms and one additional parking space for each unit with two or more bedrooms. Another one-quarter parking space per unit is to be provided for visitors. Residential planned developments are required to have at least two completely enclosed garage spaces for each unit of less than two bedrooms, and two additional uncovered spaces for each unit with two or more bedrooms. Two-bedroom apartment units are required to have 2.25 parking spaces with one space completely enclosed in a garage. The requirement for a space to be enclosed adds incrementally to the total production costs of rental housing. ➢ A driveway shall be a minimum width of 10' and a paved 25' turning radius shall be provided between the garage or other parking area and the street of access for driveways which have an average slope of 10% or more, and which are 50' or more in length. 2. Off-Site Improvements Off-site improvements, according to the Development Code, refer to the installation or construction of facilities outside the boundaries of a private parcel or lot, such as street paving, curbs and gutters, sidewalks, street trees, street lights, street signs, sewers, utilities and drainage structures. The City requires the following off-site improvements: ➢ Street or alley paving/repaving Sidewalks, curbs and gutters Street trees Ornamental street lights ➢ Sewer and drainage facilities ➢ Easements and dedications Because each site is unique due to the nature of adjacent properties, topography, and geology, it is possible that development of some sites will not need to adhere to each of the above requirements. Street (36' minimum width) or ally (20' minimum width) paving or repaving are not to exceed the area from the centerline to the curb for the length of the lot frontage. Pavement width standards and specifications are contained in the street standards study. The street standards specifications are similar to those used by Los Angeles County, but generally are less expensive designs. Sidewalks (36' minimum width), curbs (6' minimum width) and gutters (18" minimum width), where required, not to exceed the length of the lot frontage, or the total length of the front and street-side property lines for corner lots. Sidewalks are not usually required, but when necessary, are usually placed on only one side of the street. Curb and gutter specifications are of two types: The vertical curb is designed to specifications of Los Angeles County as detailed in the Los Angeles County Road Department Standards Plans. The alternative curb is a concrete rolled design, as illustrated in the street standards study report. Street trees, 15-gallon minimum sizes (unless the City specifies a smaller size) at City determined spacing. Trees are placed in the center of the lot's street frontage (1 tree per lot). Ornamental street lights (20' minimum width), per the type and spacing designated for the particular street. Street lights are not usually required, reducing costs while maintaining the rural character of the City as stated in the General Plan. The Director of Public Works may require sewer and drainage facilities. Also, sewer improvements are only for on-site and then to the hook up point. Drainage improvements are required for all effected downhill areas that would become inadequate with the new development. Easements and dedications may be needed. This includes street rights-of-way, utility storm drain, and/or school pathway easements, and park recreation land dedication and fees. The scope (i.e., streets, sidewalks, street trees) of the City's off-site improvement requirements is similar to those of other cities located in Los Angeles County. The standards, in some cases, are based on those of the County of Los Angeles or comparable to those of other cities in Los Angeles County. In summary, the improvement requirements described above have been applied to existing housing as well as all residential developments under construction and approved for development. In summary, most cities in Los Angeles County require more stringent improvements than Rancho Palos Verdes does. It is for these reasons, that the City concludes that the on-site and off-site improvements required are not a constraint to development, or to the development of affordable housing. d. Fees and Exactions This part describes and quantifies permit, development, impact and other fees imposed on housing development. Exactions also are discussed. 1. Fees 1) City Fees: Attachment A contains the fee schedule for minor and major applications. Not every residential development project requires all of these applications. Individually, the applications are not highly expensive. For example: ➢ Site Plan Review $326 Parcel Map Tentative $5,744 Parcel Map Final $1,244 Tentative Tract Map $6,243 ➢ Final Tract Map $1,455 Initial Study/Negative Declaration $5,594 Conditional Use Permit $7,222 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 developments cannot be computed, the aggregate total fees would represent a small percentage of the cost of new housing in Rancho Palos Verdes. 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. As a result, the City's fees would represent a very small percentage of the cost of new housing, which includes both land and construction costs. As stated above, typical fees cannot be computed; however, the actual fees for built projects is known. The 34-unit Mirandela senior affordable housing development paid the following City fees: Planning fees $17,526 $515 per dwelling unit Building fees $166,822 $4,907 per dwelling unit Total $184,348 $5,422 per dwelling unit A 10,000 square foot single family home development paid the following City fees: Planning fees $2,255 $0.23 per square foot Building fees $28,378 $2.84 per square foot Total $30,633 $3.06 per square foot 2) School Impact (Developer) 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. In summary, the City concludes that the fees established by the City do pose a constraint to development. Since the City does not carry out exactions, they are not a constraint to local development. e. Permit and Processing Procedures HCD guidance indicates that the element should identify and analyze the types of permits, processing time required of housing developments, overlay zones, and other applicable regulations. 1. Residential Single-Family Zones The Residential Single Family zone districts permit by right 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. 2. Geology Reports for Single-Family Residences Pursuant to Section 17.02.035 of the Development Code, applications that involve the construction of a new single-family residence must include a geology report determining that the project is geologically feasible. The city geologist reviews and approves said report prior to the application for said project being deemed complete for processing. 3. Multifamily Rental Housing The Housing Element Law requires cities to facilitate and encourage the development of multifamily rental housing. More specifically, 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. Uses permitted in the residential Multiple Family zone districts include single-family and multiple-family residential buildings. All multifamily housing sites have been constructed or approved for development. 4. Site Plan Review A site plan review application is required for all new development, which does not otherwise qualify for review under a review process or application procedure listed in Development Code. The applicant must submit the site plan review application to the Community Development Director and pay a fee as established by resolution of the City Council. The site plan review procedure enables the Director and/or Planning Commission to check development proposals for conformity with the provisions of Development Code and for the manner in which they are applied, when no other application is required by the Development Code. The site plan is reviewed and approved by the Director for conformity with provisions of the Development Code. 5. Processing Time In evaluating processing times, it is important to recognize that the developments processed in the City are both unique and complex. The average processing times of surrounding cities do not reflect projects of the same size, scale and complexity as those in Rancho Palos Verdes. Additionally, the City complies with all requirements of the California State Permit Streamlining Act. All multi-family zones and housing have been constructed or are approved. New single family residences, including tear-down rebuilds, that are no taller than 16-feet in height go through a Neighborhood Compatibility (NC) process. The review focuses on the proposed size, architectural style, and setback, and the proposal 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 topography and soils conditions in the City, geotechnical reports must be submitted and approved prior to processing a NC application. The process requires the property owner to construct a silhouette illustrating the location and outline of the proposed residence. Further, the process requires that a notice of the application be mailed to all property owners within a 500-foot radius of the property. This process usually takes 3 to 6 months to complete, and the decision making body is the Community Development. Residences taller than 16-feet in height also must go through a Height Variation process, which is processed concurrently with the NC process. However, in addition to the review criteria of the NC, the review includes an assessment on view impairment to other residences resulting from the proposed structure, and an analysis on privacy infringement to determine whether the project will infringe upon the adjacent properties. The requirements for processing are the same with regards to geotechnical, silhouetting, and notices, but the process usually takes around 6-9 months to complete. The decision making body in these instances is the Planning Commission. The average processing times will not pose a constraint to the production of housing during the planning period. The NC and HV requirements are required of single family residences. 6. Overlay Zones Overlay Control Districts, according to the 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 to the 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 is established to: Maintain and enhance land and water areas necessary for the survival of valuable land and marine-based wildlife and vegetation. Enhance watershed management, control storm drainage and erosion, and control the water quality of both urban runoff and natural water bodies within the City. The Socio-Cultural Overlay Control District is established to: Preserve, protect and maintain land and water areas, structures and other improvements which have significant historical, archaeological, or cultural importance; and Provide for the designation, 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 is established to: ➢ Preserve, protect and maintain land and water areas, structures and other improvements, which are of significant value because of their recreational, aesthetic and scenic qualities. Preserve, protect and maintain the City's visual character, 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 meets its share of the regional housing need, as the sites have been developed for numerous years. None of the four Overlay Districts have been designated on the housing sites identified to accommodate the City's share of the regional housing need (see Technical Appendix D. Consequently, the Overlay Districts do not constrain or reduce the housing capacity of the sites that are identified as addressing the City's share of the regional housing need. In summary, the City's processing and permit procedures do not pose a constraint to the development of housing. Sites to accommodate a portion of the City's share of the regional housing need already have been approved for development. 3. EFFORTS TO REMOVE CONSTRAINTS ON HOUSING FOR THE DISABLED The Housing Element must identify constraints on housing for people with disabilities and efforts to remove any such constraints. More specifically, the analysis must: Identify whether the locality has an established reasonable accommodation procedure Review zoning laws, policies, and practices for compliance with fair housing laws Evaluate permits and processing as they affect applications from disabled persons Review Building Code amendments and practices that might diminish the ability to accommodate persons with disabilities In summary, the City's rules, policies, and standards are consistent with fair housing laws. The City's Development Code does not impose constraints on the development of housing for disabled persons. a. Reasonable Accommodation Procedure The City amended the Development Code on April 5, 2011 to add a reasonable accommodation procedure. Section 17.67.020 of the Development Code states: A request for a reasonable accommodation may be made by any person with a disability, their representative, or any developer or provider of housing for an individual with a disability, when the application of a zoning law or other land use regulation, policy or practice acts as a barrier to fair housing opportunities. A request for a reasonable accommodation may include a modification or exception to the rules, standards and practices for the siting, development and use of housing or housing-related facilities that would eliminate regulatory barriers and provide a person with a disability equal opportunity to the housing of their choice. The adopted reasonable accommodation procedure describes the following: Procedure for requests for a reasonable accommodation ➢ Reference to applicable fair housing laws ➢ Definition of disability Timeline for a decision within 60 days Findings for granting a reasonable accommodation request Community Development Director determines whether to grant a request b. Definition of Family The City's definition of family is: `Family' means an individual or two or more persons, living together as a single housekeeping unit in a dwelling unit. The City's definition of family complies with fair housing laws, as it does not limit the number of persons that occupy a housing unit, does not make a distinction regarding related or unrelated persons living together, does not define family in terms of blood, marriage, or adoption, and emphasizes that a family means a single "housekeeping" unit in a dwelling unit. The City's definition of a dwelling unit is: `Dwelling unit' means one or more habitable rooms, which are intended or designed to be occupied by a family with facilities for living and the cooking and/or preparation of food. c. Residential Care Facilities for Seven or More Persons In the single- and multi-family family zones, the City requires a conditional use permit for residential care facilities involving seven or more persons. State law -- as the summary below explains -- allows cities to require a conditional use permit for residential care facilities for seven or more persons. Because California law only protects facilities serving six or fewer residents, many cities and counties restrict the location of facilities housing seven or more clients. They may do this by requiring use permits, adopting special parking and other standards for these homes, or prohibiting these large facilities outright in certain zoning districts. While this practice may raise fair housing issues, no published California decision prohibits the practice, and analyses of recent State legislation appear to assume that localities can restrict facilities with seven or more clients. Some cases in other federal circuits have found that requiring a conditional use permit for large group homes violates the federal Fair Housing Act. However, the federal Ninth Circuit, whose decisions are binding in California, found that requiring a conditional use permit for a building atypical in size and bulk for a single-family residence does not violate the Fair Housing Act. [Emphasis added] Source: Barbara Kautz, Goldfarb & Lipman LLP, Select California Laws Relating to Residential Recovery Facilities and Group Homes, pg. 3, (presented at the Residential Recovery Facilities Conference, Newport Beach, March 2, 2007) d. Siting or Separation Requirements for Licensed Residential Care Facilities The City's Development Code does not establish siting or separation requirements for the facilities. Over concentration of certain care homes in a neighborhood is regulated by the State for licensed facilities. Except for foster homes and elderly care, licenses issued by the Department of Social Services (CDSS) must be a minimum of 300 feet away from any other licensed home (as measured from the outside walls of the house— Health and Safety Code Section 1520.5) If a home is less than the 300 feet, an exemption must be granted by the city, otherwise the license in denied. This 300-foot separation restriction does not apply to licenses issued by the State Department of Alcohol and Drugs for rehabilitation homes. CDSS must submit any application for a facility covered by the law to the city where the facility will be located. The city may request that the license be denied based on the over concentration or an existing facility (or within 1,000 feet of a congregate living health facility) unless the city approves the application. Even if there is adequate separation between the facilities, a city or county may ask that the license be denied based on over concentration. These separation requirements apply only to facilities with the same type of license. For instance, a community care facility would not violate the separation requirements even if located next to a drug and alcohol treatment facility. The DOJ and HUD acknowledge that neighborhoods as well as the disabled may suffer if licensed residential care facilities are over concentrated. The DOJ and HUD offer the following guidance: ...if a neighborhood came to be composed largely of group homes, that could adversely affect individuals with disabilities and would be inconsistent with the objective of integrating persons with disabilities into the community. Especially in the licensing and regulatory process, it is appropriate to be concerned about the setting for a group home. A consideration of over-concentration could be considered in this context. This objective does not, however, justify requiring separations which have the effect of foreclosing group homes from locating in entire neighborhoods. Source: Joint Statement of the Department of Justice and the Department of Housing and Urban Development, Group Homes, Local Land Use, and the Fair Housing Act, August 18, 1999, page 4. The City has not adopted a spacing and separation standard. e. Parking Requirements for Persons with Disabilities The City's parking standards are established for different uses, not in terms of the occupants of the use. For instance, the City does not have parking standards for single- or multi-family housing occupied by disabled or elderly persons. A parking space reduction, though, may be approved pursuant to the City's affordable housing incentives. The City recognizes that disabled persons who occupy licensed residential care facilities generate a parking need different from non-disabled persons. For instance, developmentally disabled persons may not have licenses to drive a car. The "reasonable accommodation procedure" includes an opportunity for disabled persons (or their representatives) to request a reduction and/or waiver of parking requirements. f. Permits and Processing According to HCD - Issues to evaluate include the process for requesting retrofit for accessibility, ensuring compliance with all State laws regulating permit requirement of licensed residential care facilities with fewer than six persons in single-family zones, and identification of any conditions or use restrictions for licensed residential care facilities with greater than 6 persons or group homes that will be providing services on-site. 1. Requesting Retrofit for Accessibility Non-structural retrofits within buildings like adding grab bars, replacing doorknobs with single- lever doorknobs, and exchanging toilets do not require building permits, or City approvals. Structural retrofits like widening doorways or constructing ramps requires a building permit. These requirements are the same for single- and multi-family housing. Tenants residing in apartments must first obtain permission from the owner and/or property manager to make the retrofits. 2. Ensuring Compliance with all State Laws Regulating Requirements for Licensed Residential Care Facilities: As previously mentioned, the City allows - by right - all licensed residential care facilities housing six or fewer persons to be located in single-and multi-family residential zones. The City has several licensed facilities, including Adult Residential Facilities (ARF) and Residential Care Facilities for the Elderly (RCFE). The City does not impose any requirements on these facilities other than those required for single-family homes. The California Community Care Licensing Division defines these facilities as follows: ARFs are facilities of any capacity that provide 24-hour non-medical care for adults ages 18 through 59, who are unable to provide for their own daily needs. Adults may be physically handicapped, developmentally disabled, and/or mentally disabled. RCFEs provide care and supervision and assistance with activities of daily living, such as bathing and grooming. They may also provide incidental medical services under special care plans. The facilities provide services to persons 60 years of age and over and persons under 60 with compatible needs. RCFEs may also be known as assisted living facilities, retirement homes and board and care homes. The facilities can range in size from six beds or less to over 100 beds. The residents of these facilities require varying levels of personal care and protective supervision. 3. Conditions or Use Restrictions for Licensed Residential Care Facilities with Greater than 6 persons or Group Homes that will be Providing Services On-Site: Apart from requiring a conditional use permit, the City has no other conditions or use restrictions on group homes serving seven or more persons. g. Building Codes HCD recommends the analysis include the following: The year of the Uniform Building Code adoption and any amendments that might diminish the ability to accommodate persons with disabilities, identification of adopted universal design elements in the building code, the provision of reasonable accommodation for persons with disabilities in the enforcement of building codes and the issuance of building permits. 1. Building Code Adoption and Amendments The City has adopted the 2010 California Building Code (CBC). Due to its unique climatic, topographical and geological characteristics, the City has adopted amendments to the CBC. These amendments include storm damage precautions, fire retardant roofing, specialized foundation requirements, seismic safety requirements, and geological and geotechnical reports for the evaluation and elimination of hazards. None of these amendments affect housing for the disabled. 2. Universal Design Elements On October 31, 2005, HCD certified and made available the "Model Universal Design Local Ordinance." HCD indicated that the Ordinance might be adopted voluntarily in substantially the same form by any city or county pursuant to Section 17959. Although the City has not adopted a "universal design ordinance" this is not deemed a constraint on existing or new housing for disabled persons. The City understands that universal design aims to serve all people of all ages, sizes, and abilities and is applied to all buildings. For instance, a universal design feature is any component of a house that can be used by everyone regardless of his or her level of ability or disability. A feature, for instance, such as no steps at entrances. Or single-lever water controls at all plumbing fixtures and faucets. 3. Building Code Reasonable Accommodations The City has adopted a reasonable accommodation procedure. A request for a reasonable accommodation may include a modification or exception to the rules, standards and practices for the "development" of housing. The term "development" includes modifications or exceptions to the Building Code. In summary, the City's rules, policies, and standards are consistent with fair housing laws. The City's Development Code does not impose constraints on the development of housing for disabled persons. 4. CONSTRAINTS ON MEETING SHARE OF REGIONAL HOUSING NEEDS The housing element law requires the City to identify and remove any governmental constraints that hinder meeting the community's share of the regional housing need. The City has sufficient capacity to accommodate its share of the regional housing need, which is thirty-one housing units. Public services and facilities are adequate and have enough capacity to meet the needs generated by new housing development. F. PROGRESS REPORT HCD suggests that the Progress Report (officially known as review and revision) discuss: "Appropriateness of goals, objectives and policies" (Section 65588(a)(1)): A description of how the goals, objectives, policies and programs of the updated element incorporate what has been learned from the results of the prior element. "Effectiveness of the element' (Section 65588(a)(2)): A comparison of the actual results of the earlier element with its goals, objectives, policies and programs. The results should be quantified where possible (e.g., rehabilitation), but may be qualitative where necessary (e.g., mitigation of constraints). "Progress in implementation" (Section 65583(a)(3): An analysis of the significant differences between what was projected or planned in the earlier element and what was achieved. 1. APPROPRIATENESS OF GOALS AND POLICIES Table A-32 (pages A-57 to A-60) discusses the appropriateness of goals and policies pertaining to the following housing needs: Construction ➢ Rehabilitation Conservation Preservation ➢ Fair Housing All of the goals and policies remain appropriate and will be carried forward to the 2013-2021 Housing Element with the exception of those dependent on funding from the Redevelopment Agency, which was dissolved in February 2012. CDBG funding is not likely to be available to support a Housing Improvement Program. However, funding could become available during the planning period. Consequently, it was included in the Section 2 — Housing Program. Table A-32 City of Rancho Palos Verdes 2008-2014 Housing Element Evaluation of the Appropriateness of Goals and Policies Accommodate the housing 1. Designate sites that provide This policy is appropriate and needs of all income groups as for a variety of housing will be included in the 2013- quantified by Regional types. 2021 Housing Element Housing Needs Assessment Update. The variety of housing sites was enhanced Facilitate the construction of by Development Code the maximum feasible number amendments to provide for of housing units for all income emergency shelters, single- groups room occupancy housing, transitional housing and supportive housing. 2. Implement the Land Use The City has approved Element and Development projects to meet the housing Code to achieve adequate needs of all income groups. sites for the moderate- and This policy remains above-moderate income appropriate. group 3. Continue to pursue This policy was implemented. development of an The Redevelopment Agency affordable housing project at has been dissolved. the RDA-owned Crestridge site. 4. Continue to implement the The Redevelopment Agency Housing Component of the has been dissolved. The Redevelopment Agency's Agency's Housing Plan Implementation Plan provided guidance to the goals and policies of the 2008-2014 Housing Element. 5. Prefer that persons, entities This policy remains and/or developers that are appropriate; on-site affordable obligated to provide housing is preferred. affordable housing units provide the affordable housing units on-site as part of their development project rather than paying in-lieu fees. Table A-32 continued City of Rancho Palos Verdes 2008-2014 Housing Element Evaluation of the Appropriateness of Goals and Policies A housing stock free of 1. Continue to implement the This policy continues to substandard structures. current Housing Code remain appropriate. The City Enforcement Program. continues to manage housing code enforcement which maintains the quality of the existing housing stock. 2. Continue to implement the This policy is appropriate for Housing Improvement FY 2013-2014. However, Program. funding could be unavailable for the balance of the planning period. Conserve and improve the 1. Provide rental assistance to This policy is appropriate; existing stock of affordable extremely low-, very low, however, due to lack of funds housing and low- income households reference to the City and through programs Redevelopment Agency will administered by the City, be eliminated. Redevelopment Agency and/or the County of Los Angeles Housing Authority 2. Continue to support a This policy continues to Housing Code Enforcement remain appropriate. The Program to help maintain Housing Code Enforcement the physical condition of Program is responsible for housing ensuring that properties meet City standards. 3. Continue to support a The CDBG funds allocated to Housing Improvement the City have been reduced Program financed by and this program no longer Community Development can be financed. FY 2013- Block Grant Funds. 2014 will be the last year that the program will be implemented. Table A-32 continued City of Rancho Palos Verdes 2008-2014 Housing Element Evaluation of the Appropriateness of Goals and Policies Remove existing 1. Continue to implement This policy is appropriate in governmental constraints to land use regulations that the event opportunities the maintenance, facilitate meeting emerge during the 2013-2021 preservation, improvement affordable housing needs. planning period. and development of housing 2. Continue the processing This policy is appropriate of new housing because of the State mandate Preserve the existing and developments designed to and the needs of the City's future supply of affordable address the needs of the lower income households. housing that is financially entire range of income assisted by the City, County, groups. and State or Federal 3. Monitor and protect the This policy remains governments. supply of affordable appropriate. However, it housing by enforcing should be modified to reflect existing regulations and that the City is not responsible affordability restrictions. for affordable use restrictions on all the affordable housing that has been constructed. 4. Ensure the long-term This policy is appropriate. affordability of future However, the development of affordable housing a new affordable housing developments. development will be constrained due to limited sites and funds. Table A-32 continued City of Rancho Palos Verdes 2008-2014 Housing Element Evaluation of the Appropriateness of Goals and Policies Attain a housing market with 1. Continue to promote fair This policy remains "fair housing choice,"meaning housing opportunities appropriate. The City is the ability of persons of similar through the City's located within the service area income levels regardless of participation in the of the Fair Housing race, color, religion, sex, County's Community Foundation. The following national origin, handicap and Development Block Grant services continue to be familial status to have Program made available through the available to them the same Fair Housing Foundation: Fair housing choices Housing Education and Outreach, Discrimination and Investigation, Random Audits, Landlord and Tenant Counseling, Unlawful Detainer Action, Conciliation, Mediation and Referrals 2. Promote fair housing This policy is appropriate as through the provision of the City continues to refer information and referral residents needing assistance services to residents who in filing a housing need help in filing housing discrimination complaint to the discrimination complaints appropriate contact person(s) through the Fair Housing Foundation, California Department of Fair Employment and Housing, and HUD 2. EFFECTIVENESS OF THE ELEMENT All programs were successfully implemented. However, the Housing Improvement Program has been suspended due a lack of CDBG funding. All planned Development Code amendments have been completed. An employee housing code amendment will be processed in 2014. Table A-33 below and on the next two pages summarizes the effectiveness in implementing the adopted housing programs. Table A-33 City of Rancho Palos Verdes 2008-2014 Housing Element Effectiveness Land Use Element/Specific Plans 84 housing units were constructed between January 1, 2006 and December 31, 2011. 33 affordable housing units were constructed during this period. Development Code Amendment Program A Code Amendment that the City Council adopted: a) established a reasonable accommodations procedure for individuals with disabilities, b) established standards for single room occupancy facilities, c) permits emergency shelters in the CG Zone by right, and d) allows for the development of transitional and supportive housing. Western Avenue Specific Plan Update In June 2013, a Draft Western Avenue Corridor Vision Plan was completed. The Draft Vision Plan does not designate areas for mixed use development. Section 8 Rental Assistance Program The County Housing Authority reports that Section 8 Rental Assistance Program assists two resident households. The City continues to assist the Housing Authority staff by conducting a Landlord Outreach Program, informing the Housing Authority of the City's status on providing affordable housing through the existing housing stock and providing an Apartment Rental Survey to the Housing Authority. Crestridge Senior Affordable Housing The City approved the Crestridge Senior Program - Mirandela Affordable Housing project, also known as Mirandela, in 2009. A total of 33 lower income units were approved to accommodate extremely low, very low and low income housing units. The project was completed and occupied in 2010. Table A-33 Continued City of Rancho Palos Verdes 2008-2014 Housing Element Effectiveness Moderate Income Second Unit Program Staff continues to track and monitor the number of second dwelling units that are created in the City. City continues to distribute and promote the development of second dwelling units when accessory structures are proposed. Between 2006 and 2013, six (6) second dwelling units have been approved Conversion of Existing Housing to In 2008, two (2) market-rate housing units Affordable Housing were purchased with the intent to sell to a qualified low-income household and a qualified moderate-income household. In 2010, a qualified moderate-income household was identified, and the RDA owned unit was sold in 2011 Pursuant to the provisions of the City's Inclusionary Housing Ordinance, a developer was required to purchase a market-rate unit and convert it to an affordable unit. In 2009, the unit was sold to a qualified low income homeowner Reasonable Accommodation Procedure The City researched Federal and State laws and policies that require adoption of a reasonable accommodation procedure, and evaluated reasonable accommodation procedures from other California Cities. Staff drafted a reasonable accommodations ordinance that was forwarded to the Planning Commission and City Council. The City Council adopted a reasonable accommodations ordinance in 2011. Licensed Residential Care — Development Section 17.02.020 permits licensed group Code Revision Program homes in residential zones that allow single family homes. Reference is made to the fact that uses required to be permitted by state or federal law are permitted. Staff has determined that it is not necessary to set forth spacing criteria as these are established by state law. Density Bonus Ordinance Program The City's Density Bonus Ordinance was updated in 2009. The City will continue to monitor legislation and will amend the Density Bonus Ordinance when required by law. Table A-33 Continued City of Rancho Palos Verdes 2008-2014 Housing Element Effectiveness Housing Code Enforcement Program The City continues to manage the housing code enforcement on a complaint basis and continues to strive for voluntary compliance through the Code Enforcement Division The City averaged 30 code enforcement cases per month in 2011 The City continued to manage property maintenance and illegal construction code enforcement on a proactive basis Housing Improvement Program City continues to manage the HIP by providing assistance to eligible homeowners in the form of grants or zero interest deferred loans (Program is administered through the Public Works Department). Since its inception, the HIP has provided assistance to 89 households. CDBG funding for this program was discontinued in December 2012. Fair Housing Services Program City continues to promote fair housing through its participation with the LA County's Community Development Block Grant CDBG The following services continue to be made available through the Long Beach Fair Housing Foundation: Fair Housing Education and Outreach, Discrimination and Investigation, Random Audits, Landlord and Tenant Counseling, Unlawful Detainer Action, Conciliation, Mediation and Referrals Fair Housing Information Program City continues to refer residents needing assistance in filing a housing discrimination complaint to the appropriate contact person(s) through the Fair Housing Foundation, California Department of Fair Employment and Housing, and HUD City has also developed a list of contacts at the key entities G. COASTAL ZONE REQUIREMENTS Cities located within the boundaries of the Coastal Zone must include the following information in the Housing Element: Housing approved for construction within the coastal zone after January 1, 1982. Affordable housing required to be provided in new housing developments either within the coastal zone or three miles from it. Number of dwelling units occupied by low or moderate-income households that have been converted or demolished. Number of dwelling units that have been required for replacement of housing converted or demolished. Projects located in the coastal specific plan district that result in the demolition or conversion of three or more dwelling units occupied by low and moderate-income households must be replaced on a one-for-one basis. The replacement units may be located on the same site, elsewhere in the coastal specific plan district, or within three miles of the district. Upon City Council approval, in-lieu fees can be paid instead of providing the required affordable replacement housing units. New developments in the Coastal Zone must provide affordable housing. Where it is not feasible to include affordable units within new development, developers can satisfy the requirement by constructing them at another specific site within the coastal zone or within the City. There was one single-family dwelling units demolished in the Coastal Zone. J40 CITYOF RANCHO PALOS VERDES APPEND/X8 ORGANIZATIONS CONSULTED, DATA SOURCES & DEF/N/T/ONS City of Rancho Palos Verdes 2013-2021 Housing Element of the General Plan Appendix B-Organizations Consulted, Data Sources & Definitions Table of Contents A. List of Organizations Consulted--------------------------------------------------------------------------------------------------B-1 B. Data Sources B-2 ................................................................................................................................ C. Definitions B-3 ------------------------------------------------------------------------------------------------------------------------------------- A. LIST OF ORGANIZATIONS CONSULTED ➢ California Housing Partnership Corporation Main Office 369 Pine Street Suite 300 San Francisco, CA 94104 415-433-6804 City of Los Angeles Department of Aging 3580 Wilshire Boulevard Suite 300 Los Angeles, CA 90010 213 252-4030 > Fair Housing Foundation 3605 Long Beach Boulevard Suite 302 Long Beach, CA 90807 562-989-1206 Harbor Regional Center 21231 Hawthorne Boulevard Torrance, CA 90503 310-540-1711 ➢ Los Angeles County Community and Senior Services 3175 W. Sixth Street Los Angeles, CA 90020 213-738-2600 ➢ Los Angeles County Community Development Commission 700 W. Main Street Alhambra, CA 91801 626-262-4511 Los Angeles Homeless Services Authority 811 Wilshire Boulevard #600 Los Angeles, CA 90017 213-683-3333 ➢ Southern California Association of Governments Main Office 818 West 7th Street 12th Floor Los Angeles, CA 90017-3435 213-236-180 State Employment Development Department Labor Market Information Division Customer Outreach Unit P.O. Box 826880, MIC 57 Sacramento, CA 94280-0001 916-262-2162 ➢ State Independent Living Counsel 1600 K Street, Suite 100 Sacramento, CA 95814 866-866-7452 B. DATA SOURCES ➢ 2000 and 2010 Census > 2005-2009 American Community Survey California Department of Housing and Community Development, Year 2013 Income Limits, February 25, 2013 California State Board of Equalization, Assessors' Handbook Section 531, Residential Building Costs, January 2010 ➢ City of Rancho Palos Verdes, General Plan City of Rancho Palos Verdes, Zoning Ordinance Federal Financial Institutions Examination Council (FFIEC), Home Mortgage Disclosure Act (HMDA), Loan Application Register System (LARS), 2011 ➢ HSH Associates, Financial Publishers, Interest Rates International Code Council (ICC), Building Valuation Data (BVD), August 2012 r Barbara Kautz, Goldfarb & Lipman LLP, Select California Laws Relating to Residential Recovery Facilities and Group Homes, (presented at the Residential Recovery Facilities Conference, Newport Beach, March 2, 2007) Los Angeles County Community and Senior Services, Survey of Older Adult Population, 2010, 81 pages Pacific West Association of Realtors Multiple List Service Realist property tax records available from Pacific West Association of Realtors Southern California Association of Governments, 5' Cycle Final Regional Housing Needs Assessment Allocation Plan, adopted by the Regional Council on October 4, 2012 Southern California Association of Governments, Local Housing Element Assistance: Existing Housing Needs Data Report, City of Rancho Palos Verdes Southern California Association of Governments, 2012-2035 Regional Transportation Plan/Sustainable Communities Strategy Growth Forecast (adopted by SCAG Regional Council on April 4, 2012) State of California, Department of Finance, E-5 Population and Housing Estimates for Cities, Counties, and the State, 2011 and 2013, with 2010 Benchmark Sacramento, California, May 2013 State Independent Living Council, 2009 Statewide Needs Assessment for People Living with Disabilities, 40 pages Alene M. Taber, Esq., AICP and Michael J. Alti, Esq., Jackson, Demarco, Tidus & Peckenpaugh, Residential Recovery Homes and Their Local Impacts, (presented at the Residential Recovery Facilities Conference, Newport Beach, March 2, 2007) ➢ Telephone interviews of resident apartment managers U.S. Department of Housing and Urban Development, 2005-2009 CHAS (Comprehensive Housing Affordability Strategy) C. DEFINITIONS Above Moderate Income: A household whose annual income is 120% or more of the Los Angeles County median income, adjusted by number of persons in the household. Cost Burden: For lower income households, gross housing costs including utilities that exceed 30% of gross income Crowding, Overcrowding: A housing unit containing more than one person per room, as defined by the U.S. Census Bureau, for which data are made available by the Census Bureau. Developmental Disability: "Developmental disability" means a disability that originates before an individual attains age 18 years, continues, or can be expected to continue, indefinitely, and constitutes a substantial disability for that individual. As defined by the Director of Developmental Services, in consultation with the Superintendent of Public Instruction, this term shall include mental retardation, cerebral palsy, epilepsy, and autism. This term shall also include disabling conditions found to be closely related to mental retardation or to require treatment similar to that required for individuals with mental retardation, but shall not include other handicapping conditions that are solely physical in nature. Disabled Person: A person who is determined to: (1) Have a physical, mental or emotional impairment that: (i) Is expected to be of long-continued and indefinite duration; (ii) Substantially impedes his or her ability to live independently; and (iii) Is of such a nature that the ability could be improved by more suitable housing conditions; or (2) Have a developmental disability, as defined in section 102(7) of the Developmental Disabilities Assistance and Bill of Rights Act (42 U.S.C. 6001-6007) Elderly: Persons 62 years of age or older. Emergency Shelter: Housing with minimal supportive services for homeless persons that is limited to occupancy of six months or less by a homeless person. No individual or household may be denied emergency shelter because of an inability to pay. (per Health and Safety Code 50801) Extremely Low Income: A household whose annual income is between 0% and 30% of the Los Angeles County median income, adjusted by number of persons in the household. Homeless person: According to HUD, a person is considered homeless only when he/she resides in one of the places described below at the time of the count. r An unsheltered homeless person resides in place not meant for human habitation, such as cars, parks, sidewalks, abandoned buildings, or on the street. A sheltered homeless person resides in: An emergency shelter or transitional housing for homeless persons who originally came from the streets or emergency shelters. Large family: Family of five or more persons. Low Income: A household whose annual income is between 50% and 80% of the Los Angeles County median income, adjusted by number of persons in the household. Moderate Income: A household whose annual income is between 80% and 120% of the Los Angeles County median income, adjusted by number of persons in the household. Overpaying: Same as cost burden and severe cost burden Severe Cost Burden: For lower income households, gross housing costs including utilities that exceed 50% of gross income Small family: Family of two to four persons. Supportive Housing: Housing with no limit on length of stay, that is occupied by the target population as defined in subdivision (d) of Section 53260, and that is linked to onsite or offsite services that assist the supportive housing resident in retaining the housing, improving his or her health status, and maximizing his or her ability to live and, when possible, work in the community. (per Health and Safety Code 50675.14(b)) Transitional Housing: Buildings configured as rental housing developments, but operated under program requirements that call for the termination of assistance and recirculation of the assisted unit to another eligible program recipient at some predetermined future point in time, which shall be no less than six months. (Per Health and Safety Code 50675.2(h)) Very Low Income: A household whose annual income is between 30% and 50% of the Los Angeles County median income, adjusted by number of persons in the household. Letter from HCD (received December 9, 2013) SSAIFLOECAI IF Rd1AJRUSINFS JRANSPORTATLONANDHCU iNf ACENf.X_. —___ FDMUND G RROWN.7R Gavernot DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT DIVISION OF HOUSING POLICY DEVELOPMENT 2020 W EI Camino Avenue, Suite 500 Sacramento,CA 95833 (916)263-2911 /FAX(916)263-7453 RECEIVED www.hcd.ca.gov DEQ 0 9 2013 December 5, 2013 COMMUNITY DEVELOPME;y-r DEPARTMENT Mr. Joel Rojas, Development Services Director Community Development Department City of Rancho Palo Verdes 30940 Hawthorne Boulevard Rancho Palos Verdes, CA 90275 Dear Mr. Rojas: RE: Review of the City of Rancho Palo Verdes' 51h Cycle (2013-2021) Draft Housing Element Thank you for submitting Rancho Palo Verdes' draft housing element received for review on October 11, 2013 with subsequent revisions received December 4 and 5, 2013. The Department is reporting the results of its review, pursuant to Government Code Section 65585(b). The review was facilitated by various telephone conversations with Ms. So Kim, Associate Planner and Mr. Ralph Castaneda Jr. the City's consultant. The draft element addresses the statutory requirements of State housing element law. As a result, the element will comply with Article 10.6 of the Government Code once adopted and submitted to the Department, pursuant to Section 65585(g). To remain on an eight year planning cycle, pursuant to Senate Bill 375 (Chapter 728, Statutes of 2008)the City must adopt its housing element within 120 calendar days from the statutory due date of October 15, 2013 for Southern California Association of Government localities. If adopted after this date, the City will be required to revise the housing element every four years until adopting at least two consecutive revisions by the statutory deadline (Government Code Section 65588(e)(4)). For more information on housing element adoption requirements, please visit our Department's website at: http://www.hcd.ca.gov/hpd/hrclplan/he/he review adoptionsteps110812.pdf Public participation in the development, adoption and implementation of the housing element is essential to effective housing planning. Throughout the housing element process, the City must continue to engage the community, including organizations that represent lower-income and special needs households, by making information regularly available and considering and incorporating comments where appropriate. Mr. Joel Rojas, Development Services Director Page 2 The Department is pleased to inform the City that prior 41h cycle housing element compliance meets one of the threshold requirements of the Housing Related Parks (HRP) Program which rewards local governments for approving housing affordable to lower-income households. The HRP Program, funded by Proposition 1 C, provides grant funds to eligible local governments for every qualifying unit permitted since 2010. Grant awards can be used to fund park-related capital asset projects. Information about the HRP Program is available on our website at http://www.hcd.ca.gov/hpd/hrp-p/. The Department appreciates the efforts provided by Ms. Kim and the City's consultant, Mr. Castaneda, throughout the review of the housing element and looks forward to receiving Rancho Palo Verdes' adopted housing element. If you have any questions or need additional technical assistance, please contact Mario Angel, of our staff, at (916) 263-7442. Sincerely, Glen A. Campora Assistant Deputy Director