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CC SR 20200707 F - SB 902 Letter RANCHO PALOS VERDES CITY COUNCIL MEETING DATE: 07/07/2020 AGENDA REPORT AGENDA HEADING: Consent Calendar AGENDA TITLE: Consideration and possible action to authorize the Mayor to sign a letter in opposition to SB 902. RECOMMENDED COUNCIL ACTION: (1) Authorize the Mayor to sign a letter in opposition to SB 902. FISCAL IMPACT: None Amount Budgeted: N/A Additional Appropriation: N/A Account Number(s): N/A ORIGINATED BY: Megan Barnes, Senior Administrative Analyst REVIEWED BY: Karina Bañales, Deputy City Manager APPROVED BY: Ara Mihranian, AICP, City Manager ATTACHED SUPPORTING DOCUMENTS: A. Draft letter in opposition to SB 902 (page A-1) B. Text of SB 902 (as amended May 21, 2020) (page B-1) BACKGROUND AND DISCUSSION: On March 9, Senator Scott Wiener introduced the latest incarnation of his legislation aiming to boost the production of multi-family housing across the state, Senate Bill No. 902. Described as a “light touch” version of his previous defeated housing bill, SB 50, the legislation included a proposal to allow by-right construction of duplex, triplex and fourplex residential developments in single-family neighborhoods, depending on city population. SB 902 was amended in May to remove these provisions. The latest version of the bill allows, but does not require, local governments to adopt zoning ordinances that bypass California Environmental Quality Act (CEQA) review for housing developments of up to 1 10 units per parcel, at a height specified in the ordinance, if the parcel is located in a transit-rich area, a jobs-rich area, or an urban infill site. While stripping SB 902 of the by-right provisions is certainly a positive, Staff remains concerned that the legislation still has the potential to negatively impact cities that do not elect to use the zoning tool created by the bill. If a neighboring city were to rezone a parcel for such a project along the city border, residents would be impacted, but would be unable to voice their concerns via the CEQA review process. Additionally, SB 902’s definition of “jobs-rich areas” is unclear. The bill leaves these areas to be determined by the Department of Housing and Community Development and the Office of Planning and Research. For these reasons, Staff recommends the City Council authorize the Mayor to sign a letter to Senator Wiener, as drafted, or with revisions, opposing SB 902. ALTERNATIVES: In addition to the Staff recommendation, the following alternative action s are available for the City Council’s consideration: 1. Do not authorize the Mayor to sign the letter. 2. Take other action as deemed appropriate by the City Council. 2 July 7, 2020 Via Email The Honorable Scott Wiener California State Senate State Capitol, Rm. 5100 Sacramento, CA 95814 SUBJECT: Notice of Opposition to SB 902 Dear Senator Wiener: The City of Rancho Palos Verdes thanks you for the attention you have given to the concerns raised by our City and others with regard to legislative efforts to streamline the production of multi-unit housing in our communities. We are writing today, however, to voice our opposition to SB 902. While we appreciate the removal of provisions that would allow by-right construction of duplexes, triplexes and fourplexes in single-family zones, we remain concerned that this bill still has the potential to negatively impact cities that do not e lect to use the zoning tool it creates. If a neighboring city were to rezone a parcel for a project of up to 10 units along the city border, our residents would be impacted, but would be unable to voice their concerns via the CEQA review process. Additionally, SB 902 leaves “jobs-rich areas” to be determined by the Department of Housing and Community Development and the Office of Planning and Research. More specificity is needed to meaningfully understand where these projects could be built. For these reasons, the City of Rancho Palos Verdes opposes SB 902. Sincerely, John Cruikshank Mayor A-1 cc: Ben Allen, Senator, 26th State Senate District Al Muratsuchi, Assembly Member, 66th Assembly District Jeff Kiernan, League of California Cities Meg Desmond, League of California Cities Marcel Rodarte, California Contract Cities Association Rancho Palos Verdes City Council Ara Mihranian, City Manager Karina Bañales, Deputy City Manager A-2 AMENDED IN SENATE MAY 21, 2020 AMENDED IN SENATE MARCH 9, 2020 SENATE BILL No. 902 Introduced by Senator Wiener (Principal coauthor: Senator Atkins) January 30, 2020 An act to add Section 65913.3 to the Government Code, relating to land use. legislative counsel’s digest SB 902, as amended, Wiener. Planning and zoning: neighborhood multifamily project: use by right: housing development: density. The Planning and Zoning Law requires a city or county to adopt a general plan for land use development within its boundaries that includes, among other things, a housing element. Existing law requires an attached housing development to be a permitted use, not subject to a conditional use permit, on any parcel zoned for multifamily housing if at least certain percentages of the units are available at affordable housing costs to very low income, lower income, and moderate-income households for at least 30 years and if the project meets specified conditions relating to location and being subject to a discretionary decision other than a conditional use permit. Existing law provides for various incentives intended to facilitate and expedite the construction of affordable housing. Existing law, until January 1, 2026, authorizes a development proponent to submit an application for a multifamily housing development that satisfies specified planning objective standards to be subject to a streamlined, ministerial approval process, as provided, and not subject to a conditional use permit. 97 B-1 This bill would provide that a neighborhood multifamily project is a use by right in zones where residential uses are permitted if the project is not located in a very high fire severity zone, does not demolish sound rental housing or housing that has been placed on a national or state historic register, follows specified local objective criteria, and meets specified density requirements. The bill would define use by right to mean that the local government’s review of the housing development may not require a conditional use permit, planned unit development permit, or other discretionary local government review or approval that would constitute a project for purposes of the California Environmental Quality Act (CEQA). This bill would additionally authorize a local government to pass an ordinance ordinance, notwithstanding any local restrictions on adopting zoning ordinances, to zone any parcel for up to 10 units of residential density per parcel, at a height specified by the local government in the ordinance, if the parcel is located in a transit-rich area, a jobs-rich area, or an urban infill site. site, as those terms are defined. In this regard, the bill would require the Department of Housing and Community Development, in consultation with the Office of Planning and Research, to determine jobs-rich areas and publish a map of those areas every 5 years, commencing January 1, 2022, based on specified criteria. The bill would specify that an ordinance adopted under these provisions is not a project for purposes of CEQA. the California Environmental Quality Act. CEQA requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of, an environmental impact report on a project that it proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect. CEQA also requires a lead agency to prepare a mitigated negative declaration for a project that may have a significant effect on the environment if revisions in the project would avoid or mitigate that effect and there is no substantial evidence that the project, as revised, would have a significant effect on the environment. CEQA does not apply to the approval of ministerial projects. By requiring local planning officials to approve housing developments as a use by right under certain circumstances, this bill would expand the above-described exemption from CEQA for the ministerial approval of projects. 97 — 2 — SB 902 B-2 By adding to the duties of local planning officials, this bill would impose a state-mandated local program. This bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. Vote: majority. Appropriation: no. Fiscal committee: yes.​ State-mandated local program: yes no.​ The people of the State of California do enact as follows: line 1 SECTION 1. Section 65913.3 is added to the Government line 2 Code, to read: line 3 65913.3. (a)  A neighborhood multifamily project shall be a line 4 use by right in zones where residential uses are permitted, if the line 5 proposed housing development satisfies all of the following line 6 requirements: line 7 (1)  The project is not located in a very high fire hazard severity line 8 zone. line 9 (2)  The project does not demolish sound rental housing or line 10 housing that has been placed on a national or state historic register. line 11 (3)  The project follows all local objective criteria related to local line 12 impact fees, local height and setback limits, and local demolition line 13 standards. line 14 (4)  The project meets, and does not exceed, one of the following line 15 densities: line 16 (A)  Two residential units per parcel in unincorporated areas or line 17 in cities with a population of 10,000 or fewer people. line 18 (B)  Three residential units per parcel in cities with a population line 19 between 10,000 and 50,000 people. line 20 (C)  Four residential units per parcel in cities with a population line 21 of 50,000 or more people. line 22 (b) line 23 65913.3. (a)  (1)  A local government may pass an ordinance, line 24 notwithstanding any local restrictions on adopting zoning line 25 ordinances enacted by the jurisdiction, including restrictions 97 SB 902 — 3 — B-3 line 1 enacted by a local voter initiative, that limit the legislative body’s line 2 ability to adopt zoning ordinances, to zone any parcel for up to 10 line 3 units of residential density per parcel, at a height specified by the line 4 local government in the ordinance, if the parcel is located in one line 5 of the following: line 6 (A)  A transit-rich area. line 7 (B)  A jobs-rich area. line 8 (C)  An urban infill site. line 9 (2)  An ordinance adopted in accordance with this subdivision line 10 shall not constitute a “project” for purposes of Division 13 line 11 (commencing with Section 21000) of the Public Resources Code. line 12 (c) line 13 (b)  For purposes of this section: line 14 (1)  “High-quality bus corridor” means a corridor with fixed line 15 route bus service that meets all of the following criteria: line 16 (A)  It has average service intervals of no more than 15 minutes line 17 during the three peak hours between 6 a.m. to 10 a.m., inclusive, line 18 and the three peak hours between 3 p.m. and 7 p.m., inclusive, on line 19 Monday through Friday. line 20 (B)  It has average service intervals of no more than 20 minutes line 21 during the hours of 6 a.m. to 10 a.m., inclusive, on Monday through line 22 Friday. line 23 (C)  It has average intervals of no more than 30 minutes during line 24 the hours of 8 a.m. to 10 p.m., inclusive, on Saturday and Sunday. line 25 (2)  (A)  “Jobs-rich area” means an area identified by the line 26 Department of Housing and Community Development in line 27 consultation with the Office of Planning and Research that is high line 28 opportunity and either is jobs rich or would enable shorter commute line 29 distances based on whether, in a regional analysis, the tract meets line 30 both of the following: line 31 (i)  The tract is high opportunity, meaning its characteristics are line 32 associated with positive educational and economic outcomes for line 33 households of all income levels residing in the tract. line 34 (ii)  The tract meets either of the following criteria: line 35 (iii)  New housing sited in the tract would enable residents to line 36 live near more jobs than is typical for tracts in the region. line 37 (iv)  New housing sited in the tract would enable shorter line 38 commute distances for residents, relative to existing commute line 39 patterns and jobs-housing fit. 97 — 4 — SB 902 B-4 line 1 (B)  The Department of Housing and Community Development line 2 shall, commencing on January 1, 2022, publish and update, every line 3 five years thereafter, a map of the state showing the areas identified line 4 by the department as “jobs-rich areas.” line 5 (3)  (A)  “Sound rental housing” means any of the following: line 6 (i)  Housing that is subject to a recorded covenant, ordinance, line 7 or law that restricts rents to levels affordable to persons and line 8 families of moderate, low, or very low income. line 9 (ii)  Housing that is subject to any form of rent or price control line 10 through a public entity’s valid exercise of its police power. line 11 (iii)  (I)  Housing occupied by tenants within the seven years line 12 preceding the date of the application, including housing that has line 13 been demolished or that tenants have vacated before the application line 14 for a development permit. line 15 (II)  For purposes of this clause, “tenant” means a person who line 16 does not own the property where they reside, including residential line 17 situations that are any of the following: line 18 (ia)  Residential real property rented by the person under a line 19 long-term lease. line 20 (ib)  A single-room occupancy unit. line 21 (ic)  An accessory dwelling unit that is not subject to, or does line 22 not have a valid permit in accordance with, an ordinance adopted line 23 by a local agency pursuant to Section 65852.2. line 24 (id)  A residential motel. line 25 (ie)  A mobilehome park, as governed under the Mobilehome line 26 Residency Law (Chapter 2.5 (commencing with Section 798) of line 27 Title 2 of Part 2 of Division 2 of the Civil Code), the Recreational line 28 Vehicle Park Occupancy Law (Chapter 2.6 (commencing with line 29 Section 799.20) of Title 2 of Part 2 of Division 2 of the Civil Code), line 30 the Mobilehome Parks Act (Part 2.1 (commencing with Section line 31 18200) of Division 13 of the Health and Safety Code), or the line 32 Special Occupancy Parks Act (Part 2.3 (commencing with Section line 33 18860) of Division 13 of the Health and Safety Code). line 34 (if)  Any other type of residential property that is not owned by line 35 the person or a member of the person’s household, for which the line 36 person or a member of the person’s household provides payments line 37 on a regular schedule in exchange for the right to occupy the line 38 residential property. line 39 (iv)  A parcel or parcels on which an owner of residential real line 40 property has exercised their rights under Chapter 12.75 97 SB 902 — 5 — B-5 line 1 (commencing with Section 7060) of Division 7 of Title 1 to line 2 withdraw accommodations from rent or lease within 15 years line 3 before the date that the development proponent submits an line 4 application pursuant to a streamlined, ministerial approval process. line 5 (B)  “Sound rental housing” shall not mean housing that the local line 6 agency has deemed uninhabitable due to fire, flood, earthquake, line 7 or other natural disaster. line 8 (4) line 9 (3)  “Transit-rich area” means a parcel within one-half mile of line 10 a major transit stop, as defined in Section 21064.3 of the Public line 11 Resources Code, or a parcel on a high-quality bus corridor. line 12 (5) line 13 (4)  “Urban infill site” means a site that satisfies all of the line 14 following: line 15 (A)  A site that is a legal parcel or parcels located in a city if, line 16 and only if, the city boundaries include some portion of either an line 17 urbanized area or urban cluster, as designated by the United States line 18 Census Bureau, or, for unincorporated areas, a legal parcel or line 19 parcels wholly within the boundaries of an urbanized area or urban line 20 cluster, as designated by the United States Census Bureau. line 21 (B)  A site in which at least 75 percent of the perimeter of the line 22 site adjoins parcels that are developed with urban uses. For the line 23 purposes of this section, parcels that are only separated by a street line 24 or highway shall be considered to be adjoined. line 25 (C)  A site that is zoned for residential use or residential line 26 mixed-use development, or has a general plan designation that line 27 allows residential use or a mix of residential and nonresidential line 28 uses, with at least two-thirds of the square footage of the line 29 development designated for residential use. line 30 (6)  (A)  “Use by right” means that the local government’s review line 31 of the housing development may not require a conditional use line 32 permit, planned unit development permit, or other discretionary line 33 local government review or approval that would constitute a line 34 “project” for purposes of Division 13 (commencing with Section line 35 21000) of the Public Resources Code. Any subdivision of the sites line 36 shall be subject to all laws, including, but not limited to, the local line 37 government ordinance implementing the Subdivision Map Act line 38 (Division 2 (commencing with Section 66410)). line 39 (B)  A local ordinance may provide that “use by right” does not line 40 exempt the housing development from design review. However, 97 — 6 — SB 902 B-6 line 1 that design review shall not constitute a “project” for purposes of line 2 Division 13 (commencing with Section 21000) of the Public line 3 Resources Code. line 4 (7)  “Very high fire hazard severity zone” means a very high line 5 fire hazard severity zone as determined by the Department of line 6 Forestry and Fire Protection pursuant to Section 51178, or within line 7 a high or very high fire hazard severity zone as indicated on maps line 8 adopted by the Department of Forestry and Fire Protection pursuant line 9 to Section 4202 of the Public Resources Code. line 10 (d) line 11 (c)  The Legislature finds and declares that ensuring the adequate line 12 production of affordable housing is a matter of statewide concern line 13 and is not a municipal affair as that term is used in Section 5 of line 14 Article XI of the California Constitution. Therefore, this section line 15 applies to all cities, including charter cities. line 16 SEC. 2. No reimbursement is required by this act pursuant to line 17 Section 6 of Article XIII B of the California Constitution because line 18 a local agency or school district has the authority to levy service line 19 charges, fees, or assessments sufficient to pay for the program or line 20 level of service mandated by this act, within the meaning of Section line 21 17556 of the Government Code. O 97 SB 902 — 7 — B-7