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CC SR 20210316 G - 2020 Housing Annual Progress Report CITY COUNCIL MEETING DATE: 03/16/2021 AGENDA REPORT AGENDA HEADING: Consent Calendar AGENDA DESCRIPTION: Consideration and possible action to forward the 2020 Housing Element Annual Progress Report to the appropriate state agencies. RECOMMENDED COUNCIL ACTION: (1) Authorize Staff to forward the City’s Annual Progress Report on the implementation of the Rancho Palos Verdes Housing Element during the 2020 calendar year to the Governor’s Office of Planning and Research and the California Department of Housing and Community Development. FISCAL IMPACT: None Amount Budgeted: N/A Additional Appropriation: N/A Account Number(s): N/A ORIGINATED BY: Jaehee Yoon, Senior Planner REVIEWED BY: Ken Rukavina, PE, Director of Community Development APPROVED BY: Ara Mihranian, AICP, City Manager ATTACHED SUPPORTING DOCUMENTS: A. 2020 Housing Element Annual Progress Report (page A-1) B. 2020 State Housing Bill Summary (page B-1) BACKGROUND: Each California city, pursuant to Government Code §65300, is required to prepare and adopt a general plan for its jurisdiction with certain mandatory elements, including a housing element. The housing element consists of: (a) an identification and analysis of existing and projected housing needs, including the local government’s share of the regional housing needs; (b) an inventory of resources and constraints relevant to meeting those needs; and (c) a program showing a five-year schedule of actions to be taken to implement the housing element, including how the local government plans to meet its share of the regional housing needs. 1 Pursuant to Government Code §65400, a local jurisdiction is required to prepare and submit an annual progress report on the jurisdiction’s sta tus and progress in implementing its housing element by April 1 of each year. In 1995, the Legislature required the California Department of Housing and Community Development (HCD) to adopt forms and definitions for local governments to use for the preparation of their annual progress reports. In recent years, the forms and tables were expanded by HCD and updated to incorporate new reporting requirements pursuant to Assembly Bill No. 879 (Grayson) and Senate Bill No. 35 (Wiener) of the state’s 2017 housing package, as well as AB 1486 (Ting) and AB 1233 (Jones) which include, but are not limited to, project streamlining and identification of sites to accommodate housing shortfalls. DISCUSSION: 2020 Housing Element Annual Progress Report The 2020 Annual Progress Report on the City’s Housing Element provides HCD with the required information based on the following tables (Attachment A): • Table A - Number of submitted housing development applications; • Table A2 - Building permit activity summary; • Table B - Regional housing needs allocation process or permits issued for affordable units; • Table C - Sites identified or rezoned to accommodate shortfall housing needs; • Table D - Housing element program implementation status; • Table E - Commercial development bonus; • Table F (optional) - Units rehabilitated, preserved and acquired for alternative adequate sites for the 2020 calendar year; • Table G – Locally-owned lands in the housing element sites inventory; and • Table H – Locally-owned surplus sites The attached Annual Progress Report only includes information for Tables A through D, as the City has no reportable information for Tables E through H, which focus on the construction of commercial development, units that were substantially rehabilitated, acquired, or preserved and locally-owned lands that were sold, leased or disposed of. Due to the extensive amount of information on the tables and to ensure that the information being presented remains legible, the Housing Element 2020 Annual Progress Report is available for review at the following link: https://www.rpvca.gov/DocumentCenter/View/16811/RPV-2020-Housing-APR-Tables Staff is of the opinion that the Goals and Policies of the City’s Housing Element for this reporting period continue to be implemented by actions taken by the City while balancing community needs, property rights, and the health, safety and welfare of the general public. Planning Commission Review 2 The 2020 Housing Element Annual Progress Report is scheduled to be reviewed by the Planning Commission at its March 9, 2021 meeting, which will occur after the transmittal of this report. Staff will update the City Council regarding the Planning Commission ’s recommendations on the report as late correspondence. If approved by the City Council, the report will be forwarded to the Governor’s Office of Planning and Research (OPR) and HCD on or before the April 1, 2021 submittal deadline. The submittal of a timely and up-to-date report to the state ensures that the City is in compliance with state law and continues to provide funding and grant opportunities for the City. 5th Regional Housing Needs Assessment Cycle (2013-2021) While cities do not control local market realities or the availability of funding to support the development of affordable housing, cities are required to ensure that enough land is zoned within their respective jurisdictions to accommodate affordable housing. To that end, the current Housing Element anticipated implementing the Adequate Sites Program as outlined in Table D to accommodate eight lower income housing units by rezoning the property at 29619 Western Avenue. Although efforts were made in 2018 between the City and property owner to further discuss rezoning the site, this housing program will not be implemented in time to provide the required housing units under the 5th cycle RHNA. The consequences of failing to implement programs in the adopted Housing Element or meeting the 5th cycle RHNA numbers may include, but not limited to, financial penalties, impacts to the City’s land use authority, and carryover of the remaining RHNA units to the next cycle. However, the City Attorney’s Office has noted that less than 5% of the local jurisdictions in California are on track to meet their RHNA goals for the current cycle. That being said, the 8 lower income housing units that fall short of the required goal for the City are reasonable in that the City has continued making progress. Specifically, the Community Development Department proposes to utilize grant funding previously mentioned such as SB 2 and the recently submitted LEAP application to develop a mixed-use overlay zoning district to allow higher density residential uses along the City’s commercial corridors, including Western Avenue. Furthermore, Staff has recently initiated discussions with property owners along Western Avenue to potentially form public-private partnerships in creating mixed-use development opportunities that can accommodate RHNA numbers in the 6th cycle RHNA. New State of California Housing Bills In 2020, Governor Newsom signed into law 10 housing bills applicable to public agencies in which some became effective immediately while the remaining laws took effect on January 1, 2021. Among the numerous bills, AB 3182 (Ting) and AB 725 (Wicks) should be noted as they have the most impact to the City. Specifically, AB 3182 requires timely processing of Accessory Dwelling Unit (ADU) applications which has been incorporated into the updated ADU ordinance adopted by the City Council on January 19, 2021. In addition, AB 725 will require that at least 25% of the City’s share of 3 the regional housing need for moderate residential development be zoned such that developers are permitted to build between four and 100 units of housing per acre. Additional information on each new housing bill and its impact to the City can be found in Attachment B. 6th Regional Housing Needs Assessment Cycle (2021-2029) The Regional Housing Needs Assessment (RHNA) is a representation of future housing needs for all income levels of a jurisdiction and is a requirement of state housing law. As part of the RHNA, every jurisdiction must plan for its RHNA allocation in the hou sing element of its general plan. The RHNA quantifies the need for housing within each jurisdiction in the state during specified planning periods. Information presented in Table B of the attached 2020 Annual Progress Report provides an update on the curre nt 5th RHNA cycle, which covers the planning period from 2013 to 2021. Specifically, the City has provided for 127 of its 31 required housing units with 8 units in the very -low or low income categories pending. Based on the regional housing need determination provided by HCD, the Southern California Association of Governments (SCAG) is the organization tasked with developing a RHNA allocation plan for the Southern California region. SCAG is the nation’s largest metropolitan planning organization, which represents six counties and 191 cities, including the City of Rancho Palos Verdes. SCAG has developed the 6 th cycle RHNA allocation plan for 1,341,827 housing units among four income categories (very-low, low, moderate and above-moderate income levels) that will be distributed to each jurisdiction to cover the planning period from October 2021 through October 2029. The resulting RHNA allocation to the City will require providing 639 units across the following income categories (the allocation was increased from 638 to 639 housing units to account for local jurisdictions that were successful in their appeal with SCAG): o 253 Very-low income units o 139 Low-income units o 125 Moderate income units o 122 Above-moderate income unit Since August 2019, the City has submitted letters to SCAG expressing concerns with the proposed methodologies as it significantly increased the RHNA allocation compared to previous cycles. The increase in the City’s RHNA allocation and that of many coastal cities were in part due to the request of representatives from Inland Empire communities to, among other things, shift housing closer to employment opportunities and high - quality transit. On October 26, 2020, the City filed an appeal in response to the allocated share of the regional housing need included as part of SCAG’s Draft RHNA Plan. The appeal requested that the RHNA allocation be reduced based on errors in the RHNA methodology and its failure to consider local planning factors such as the Very High Fire Hazard Severity Zone and vast areas of open space preserves within the City. However, on January 13, 2021, SCAG denied the City’s appeal due to insufficient 4 evidence. (Copies of the letters and appeal can be reviewed at the following link: http://www.rpvca.gov/1256/Regional-Housing-Needs-Assessment-RHNA.) On March, 4, 2021, SCAG adopted the Final RHNA Allocation Plan, in which jurisdictions in the SCAG region must complete and adopt their local housing element updates accordingly. As noted above, the City’s allocation increased to 639 housing units due to the outcome of the appeal process. More information on the RHNA process and allocation can be found at the following link: https://scag.ca.gov/housing. RHNA Goals and ADUs In terms of providing for more “low” and “moderate" income units, Staff will continue to track and process the construction of ADUs in the City that qualify and count toward the RHNA. Depending on the size, number of bedrooms, occupancy, and rental rate planned for the ADU, the unit may be categorized anywhere from “very-low” to “above moderate" income units, which is determined by the HCD’s Housing Affordability Calculator to be counted towards the City’s RHNA number. As the aforementioned factors affecting the affordability of the units are wide and varied from each project, Staff is unable to predict the percentage of ADUs that will qualify for “low” and “moderate" income units for the 6th cycle RHNA at this time. As the City continues to assess the recent update to the ADU ordinance to ensure compliance with state requirements, Staff will also work closely with elected and appointed officials, as well as the public, to prepare housing regulations and code amendments that meet state housing law and are true to the Goals and Policies of the City’s General Plan. 2021-2029 Housing Element Update With the final RHNA allocation, the City is required to update its Housing Element of the General Plan and submit it to HCD by October 2021. The update will cover the planning period from October 2021 to October 2029. The City has retained Environmental Sciences Associates (ESA) to assist Staff in the process of updating the Housing Element, which will include an analysis of existing housing constraints, program implementation, California Environmental Quality Act (CEQA) analysis and outreach efforts to receive input from the community. It should also be noted that in April 2020, the City was awarded grant funding from HCD under Senate Bill No. 2 (SB 2) in the amount of $160,000 to facilitate and streamline the development process to address housing needs. An additional grant application for the Local Early Action Planning (LEAP) Grant Program administered by HCD was also submitted in January 2021 in the amount of $150,000 to facilitate the acceleration of housing production and help prepare for the 6th cycle RHNA. The City is awaiting the results of the LEAP application at this time. 5 ALTERNATIVES: In addition to the Staff recommendations, the following alternative is available for City Council’s consideration: 1. Identify additional information to be included in the Housing Element Annual Progress Report prior to forwarding the report to the required state agencies. 6 JurisdictionRancho Palos VerdesANNUAL ELEMENT PROGRESS REPORTNote: "+" indicates an optional fieldReporting Year2020 (Jan. 1 - Dec. 31)Housing Element ImplementationDate Application SubmittedTotal Approved Units by ProjectTotal Disapproved Units by ProjectStreamliningNotes234678 9 10Prior APN+Current APN Street AddressProject Name+Local Jurisdiction Tracking ID+Unit Category(SFA,SFD,2 to 4,5+,ADU,MH)TenureR=RenterO=OwnerDate Application Submitted (see instructions)Very Low-Income Deed RestrictedVery Low-Income Non Deed RestrictedLow-Income Deed RestrictedLow-Income Non Deed RestrictedModerate-Income Deed RestrictedModerate- Income Non Deed RestrictedAboveModerate-IncomeTotal PROPOSED Units by ProjectTotal APPROVED Units by projectTotal DISAPPROVED Units by ProjectWas APPLICATION SUBMITTED Pursuant to GC 65913.4(b)? (SB 35 Streamlining) Notes+Summary Row: Start Data Entry Below0000096 15 13 00756801902114 Bronco Dr PLSR2019-0160SFDO5/28/2020111No75880060187255 Crest Rd PLHV2020-0004SFDO11/30/202011No757201002048 Cinnamon Ln PLAU2020-0002ADUO10/5/2020111No7546026016 6055 Montemalaga DrPLSR2020-0015 ADUO1/27/2020111No7554017019 28160 Palos Verdes Dr. EastPLVA2018-0001 SFDO4/2/202011No7556011038 48 Rockinghorse RdPLSR2019-0065 SFDO6/25/2020111No7581008004 30523 Cartier DrPLSR2020-0224ADUO8/31/2020111No7582022085 68 Calle CortadaPLSR2020-0269 ADUR9/23/2020111NoApplicant notified City that they will not proceed to build the ADU shortly after receiving planning approval7573004018 6341 Tarragon RdPLSR2020-0072 ADUR5/27/2020111No7577012012 26624 Indian Peak RdPLSR2019-0264 ADUO8/19/2019111No7546017014 5541 Diversey DrPLSR2019-0315 ADUO1/28/2020111No7566001029 3015 Crest RdPLHV2018-0003 ADUO6/5/2020111No7581009002 30347 Rhone DrPLSR2019-0222 ADUO11/15/2019111No7550010019 28600 Gunter RdPLHV2019-0006 ADUO12/12/2020111No7556016006 10 Toprail LnPLHV2019-0008 SFDO 11/5/2020111No7572012028 6001 Palos Verdes Dr. South PLHV2019-0011 SFD O 2/27/2020111No7572012028 6001 Palos Verdes Dr. South PLHV2019-0011 ADU R 2/27/2020111No00000000Housing Development Applications SubmittedTable ACells in grey contain auto-calculation formulas(CCR Title 25 §6202)51Project IdentifierUnit TypesProposed Units - Affordability by Household Incomes A-1 JurisdictionRancho Palos VerdesANNUAL ELEMENT PROGRESS REPORTReporting Year2020 (Jan. 1 - Dec. 31)Housing Element ImplementationCells in grey contain auto-calculation formulasTable A2Annual Building Activity Report Summary - New Construction, Entitled, Permits and Completed UnitsStreamlining InfillHousing without Financial Assistance or Deed RestrictionsTerm of Affordability or Deed RestrictionNotes23568911 12 13 14 15 16 17 18 192021Prior APN+Current APN Street AddressProject Name+Local Jurisdiction Tracking ID+Unit Category (SFA,SFD,2 to 4,5+,ADU,MH)TenureR=RenterO=OwnerVery Low- Income Deed RestrictedVery Low- Income Non Deed RestrictedLow- Income Deed RestrictedLow- Income Non Deed RestrictedModerate- Income Deed RestrictedModerate- Income Non Deed RestrictedAboveModerate-IncomeEntitlementDate Approved# of Units issued EntitlementsVery Low- Income Deed RestrictedVery Low- Income Non Deed RestrictedLow- Income Deed RestrictedLow- Income Non Deed RestrictedModerate- Income Deed RestrictedModerate- Income Non Deed RestrictedAboveModerate-IncomeBuilding Permits Date Issued# of Units Issued Building Permits Very Low- Income Deed RestrictedVery Low- Income Non Deed RestrictedLow- Income Deed RestrictedLow- Income Non Deed RestrictedModerate- Income Deed RestrictedModerate- Income Non Deed RestrictedAboveModerate-IncomeCertificates of Occupancy or other forms of readiness (see instructions) Date Issued# of Units issued Certificates of Occupancy or other forms of readinessHow many of the units were Extremely Low Income?+Was Project APPROVED using GC 65913.4(b)? (SB 35 Streamlining) Y/NInfill Units?Y/N+Assistance Programs for Each Development (see instructions)Deed Restriction Type(see instructions)For units affordable without financial assistance or deed restrictions, explain how the locality determined the units were affordable(see instructions)Term of Affordability or Deed Restriction (years) (if affordable in perpetuity enter 1000)+ Number of Demolished/Destroyed Units+Demolished or Destroyed Units+Demolished/Destroyed Units Owner or Renter+ Notes+Summary Row: Start Data Entry Below00000 84 1200000 56 1100000 08 8004007568019021 14 Bronco DrRES2020-00330 SFDO17/27/2020100N756600005 2950 Crownview DrRES2020-00297 SFDO018/31/20201110/15/20201N757201002048 Cinnamon LnRES2020-00381ADUO110/16/20201112/7/202010NCity Staff conducted a rent survey of housing costs of comparable units in the area and used HCD's Housing Affordability Calculator to determine that the unit is moderate income level 7546026016 6055 Montemalaga DrRES2021-00036 ADUO12/10/2020100NCity Staff conducted a rent survey of housing costs of comparable units in the area and used HCD's Housing Affordability Calculator to determine that the unit is moderate income level 7578015036 5903 Clint PlRES2019-00592 SFDO012/7/2020115/15/20201N7556011038 48 Rockinghorse RdRES2020-00389 SFDO19/8/2020100N7557004006 2028 Jaybrook DrBLD2017-00156 SFDO0013/17/20201N1DemolishedO7566022012 28955 Palos Verdes Dr EastRES2018-00502 SFDO012/4/202010N7573004018 6341 Tarragon RdRES2020-00255 ADUR16/5/2020100NCity Staff conducted a rent survey of housing costs of comparable units in the area and used HCD's Housing Affordability Calculator to determine that the unit is moderate income level 757701201226624 Indian Peak RdRES2020-00043 ADUO13/5/2020117/6/202010NCity Staff conducted a rent survey of housing costs of comparable units in the area and used HCD's Housing Affordability Calculator to determine that the unit is moderate income level 7561017003 22 La Vista VerdeRES2019-00381 ADUO014/7/202010NCity Staff conducted a rent survey of housing costs of comparable units in the area and used HCD's Housing Affordability Calculator to determine that the unit is moderate income level 7546017014 5541 Diversey DrRES2020-00158 ADUO13/27/2020119/21/202010NCity Staff conducted a rent survey of housing costs of comparable units in the area and used HCD's Housing Affordability Calculator to determine that the unit is moderate income level 7566001028 3015 Crest RdRES2020-00299 ADUO18/11/2020100NCity Staff conducted a rent survey of housing costs of comparable units in the area and used HCD's Housing Affordability Calculator to determine that the unit is moderate income level 7581009002 30347 Rhone DrRES2020-00148 ADUO11/14/2020119/15/202010NCity Staff conducted a rent survey of housing costs of comparable units in the area and used HCD's Housing Affordability Calculator to determine that the unit is moderate income level 7572010024 33 Cinnamon LnBLD2017-00563 SFDO0012/4/20201N7566007005 2801 Crownview DrBLD2016-01099 SFDO0012/5/20201N756403001031929 Emerald View DrRES2018-00596 SFDO0018/7/20201N756402901832007 Isthmus View DrRES2019-00342 SFDO012/7/202010N75460050455375 Rollingridge RdBLD2017-00587 SFDO0012/11/20201N1DemolishedO7572012028 6001 Palos Verdes Dr. South RES2020-00323 SFDO14/14/2020100N7572012028 6001 Palos Verdes Dr. South RES2020-00323 ADUR14/14/2020100NCity Staff conducted a rent survey of housing costs of comparable units in the area and used HCD's Housing Affordability Calculator to determine that the unit is moderate income level 7573014107 21 NantasketRES2018-00352 SFDO00111/17/20201N7546011013 5325 Bayridge RdRES2019-00509 SFDO0110/14/202010N1DemolishedO7572010012 51 Narcissa DrRES2020-00478 SFDO0112/17/202010N7582005010 30815 Rue ValoisRES2020-00127 SFDO11/28/2020100N1DemolishedO(CCR Title 25 §6202)Note: "+" indicates an optional fieldHousing with Financial Assistance and/or Deed RestrictionsDemolished/Destroyed UnitsProject Identifier1Unit TypesAffordability by Household Incomes - Completed EntitlementAffordability by Household Incomes - Building PermitsAffordability by Household Incomes - Certificates of Occupancy4710A-2 JurisdictionRancho Palos VerdesANNUAL ELEMENT PROGRESS REPORTReporting Year2020 (Jan. 1 - Dec. 31)Housing Element Implementation(CCR Title 25 §6202)134RHNA Allocation by Income Level201320142015201620172018201920202021Total Units to Date (all years)Total Remaining RHNA by Income LevelDeed Restricted41Non-Deed RestrictedDeed RestrictedNon-Deed RestrictedDeed RestrictedNon-Deed Restricted115Above Moderate13 4 4 48 26 21 9 6 118314 4 52 27 22 10 11 130 8Note: units serving extremely low-income households are included in the very low-income permitted units totalsCells in grey contain auto-calculation formulasTotal RHNATotal UnitsIncome LevelVery LowLow5This table is auto-populated once you enter your jurisdiction name and current year data. Past year information comes from previous APRs.7Moderate855Please contact HCD if your data is different than the material supplied here2Table BRegional Housing Needs Allocation ProgressPermitted Units Issued by Affordability35A-3 JurisdictionRancho Palos VerdesANNUAL ELEMENT PROGRESS REPORTReporting Year2020 (Jan. 1 - Dec. 31)Housing Element ImplementationDate of RezoneType of Shortfall24 5 6 7 9 10 11APN Street AddressProject Name+Local Jurisdiction Tracking ID+Date of RezoneVery Low-IncomeLow-Income Moderate-IncomeAbove Moderate-IncomeType of Shortfall Parcel Size(Acres)General Plan DesignationZoningMinimum Density Allowed Maximum Density AllowedRealistic CapacityVacant/NonvacantDescription of Existing Uses7557-039-011 29619 S. Western Avenue8Shortfall of Sites0.44 Commercial RetainCommercial General (CG)20 DU/AC 20 DU/AC8Non-VacantRetailNote: "+" indicates an optional fieldCells in grey contain auto-calculation formulas(CCR Title 25 §6202)Summary Row: Start Data Entry Below83Project Identifier RHNA Shortfall by Household Income CategorySites Description1Sites Identified or Rezoned to Accommodate Shortfall Housing NeedTable CA-4 Jurisdiction Rancho Palos Verdes Reporting Year 2020 (Jan. 1 - Dec. 31) 123 4 Name of Program Objective Timeframe in H.E Status of Program Implementation Western Avenue Vision Plan/Adequate Sites Program (Program No. 1) Minimum 8 Housing Units for Lower Income Households March_2017 • Modification of land use and zoning designation at 29619 S. Western Avenue to allow residential use to a minimum of 20 dwelling units per acre was noted to be accomplished no later than March 2017. The housing program would allow multifamily uses by-right, without a CUP, planned unit development or other discretionary action. While the housing program has not been implemented, City staff met with the property owners at 29619 and 29601 S. Western Avenue to discuss development proposals related to this housing program in 2018. • In 2020, City staff coordinated a meeting with property owners along 29019 S. Western Ave through 29229 S. Western Avenue to discuss potential mixed-use developments. • The City intends to initate code amendment proceedings to create a mixed- use overlay zone by December 31, 2021. Moderate Income Second Unit Development Program (Program No. 2) 10 Second Dwelling Units Constructed 2013-2021 • City continues to track and monitor the number of second dwelling units, also known as Accessory Dwelling Units(ADU) that are created in the City. • City continues to distribute and promote the development of second dwelling units when accessory structures are proposed. • In 2020, the Planning Division granted entitlements to develop 5 second dwelling units of which one has been issued a building permit. No Net Loss Program (Program No. 3) Establish the Evaluation Procedure to Monitor Housing Capacity July_ 2014 • The City will annually track and monitor the amount, type and size of vacant and underutilized parcels for housing opportunities Section 8 Rental Assistance for Cost Burdended Lower Income Households (Program No. 4) 4 Units for Extremely Low and Low Income Renter Households 2013-2021 • 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. Citywide Affordable Housing Requirement / Housing Impact Fee (Program No. 5) 7 Housing Units for Lower Income Households 2013-2021 • To date there are 5 very-low income housing units (2 within Highridge Condo and 3 at Sol y Mar) and City staff continues to assess opportunities to work with property owners and developers in providing additional units under this Housing Program. First Time Home Buyer Assistance (Program No. 6) First Time Home Buyer Assistance (Program No. 6)2013-2021 • The following non-City programs that provide financial assistance to homebuyers is provided on the City's website: County Homeownership Program, Morgage Credit Certificate Program, and So Cal Home Financing Authority First Home Mortgage Program. Outreach Program for Persons with Disabilities (Program No. 7) Coordinate with Harbor Regional Center July_2015 • City continues to 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. • Program information is avaliable on the City's website. Extremely Low Income Housing Program (Program No. 8) Assist 4 Extremely Low Income Households 2013-2021 • Continue to implement Program Nos. 4, 5 and 11 Zoning Ordinance Amendments to Remove Governmental Constraints (Program No. 9) Adopt Amendment July_2014 • The City has initiated the process of undergoing a comprehensive Zoning Code update and creation of a mixed-use overlay zone to faciliate housing production by utilzing the Senate Bill No. 32 planning grant awarded in April, 2020. Housing Code Enforcement Program (Program No. 10)10 New Cases Per Month 2013-2021 • The City continued 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 26 code enforcement cases per month in 2020. • The City continues to manage property maintenance and illegal construction. Home Improvement Program (Program No. 11)5 Housing Units 2013-2021 • In December 2012, the City Council decided to discontinue the Home Improvement Program. 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 Fair Housing Services Program (Program No. 12)65 Lower Income Households 2013-2021 • The City, in coopertation with the County and the Housing Rights Center, continues to make available fair housing services to its residents. Fair Housing Information Program (Program No. 13) Information Disseminated (Information on Website by July 2014 & Brochures Disseminated by January 2015) July 2014 & January 2015 • The City established and implemented the First Time Homebuyer Assistance Program,and Fair Housing Information Program by providing the following: Fair Housing brochure that describes fair housing laws and rights; links to the Housing Rights Center website, State Department of Fair Employment and Housing, and U.S. Department of Housing and Urban Development, which were completed in September 2015. • Fair Housing Services and Program information continues to be made available on the City's website. Energy Conservation Program (Program No. 14) Implement Voluntary Green Building Construction Program 2013-2021 • Continue to encourage voluntary participation in the City's Green Building Construction Program by offering permit streamlining as well as up to a 50% rebate for Planning and Building fees Housing Programs Progress Report Describe progress of all programs including local efforts to remove governmental constraints to the maintenance, improvement, and development of housing as identified in the housing element. Table D Program Implementation Status pursuant to GC Section 65583 ANNUAL ELEMENT PROGRESS REPORT Housing Element Implementation (CCR Title 25 §6202) A-5 2020 State Housing Bill Summary The housing bills are divided into 3 general categories: (1) housing production; (2) accessory dwelling units (“ADU”); and (3) other housing bills. The table below provides a summary of the new bills’ requirements by category and impacts to the City. Summary Description Impacts to the City Affordable Housing Production Legislation SB 1030 (Wiener) Housing Accountability Act Effective September 25, 2020, this bill made two notable changes to the Housing Accountability Act (Government Code § 65589.5) (“HAA”). First, the HAA requires reviewing bodies to review a proposed project based on the development standards in place when the project application was “deemed complete.” Under previous law, a project application was “deemed complete” when an applicant submitted a preliminary application per Government Code section 65941.1. This bill clarifies that if a project does not submit a preliminary application, it will be deemed complete when it has submitted a complete application per Government Code section 65943. Second, the HAA provides that a project may be subject to development standards enacted after the applicant submitted a preliminary application when, among other things, the project is revised following the submission of the preliminary application to increase the number of residential units or square footage by 20% or more. Previous law held that this 20% threshold excludes increases resulting from a density bonus or concession under state law. This bill clarifies that the 20% threshold This bill requires the City to apply development standards in place at the time an applicant submits a complete application per Government Code section 65943 if the applicant does not submit a preliminary application per Government Code section 65941.1. The City is not required to revise its development code with respect to density bonuses. However, this bill clarifies that increases to the number of residential units or square footage resulting from density bonuses or concessions under the City’s development code, in addition to increases resulting from density bonuses under state law, shall not be counted towards the 20% threshold for projects which are revised following the submission of a preliminary application. B-1 Summary Description Impacts to the City also excludes any increases resulting from density bonuses or concessions under local law. AB 2345 (Gonzalez) Density Bonus Law Effective January 1, 2021, this bill authorizes an applicant to receive 2 incentives or concessions for projects that include at least 17% (previously 20%) of the total units for lower income households, and 3 incentives or concessions for projects that include at least 24% (previously 30%) of total units for lower income households. Previous law authorized a maximum density bonus of 35% for projects that included at least 20% of total units for lower income households, or 11% for very low income households, or 40% of total units for moderate income households. This bill increases the maximum density bonus available to qualifying projects from 35% to 50%. This bill clarifies that for projects seeking to qualify for a density bonus under Government Code section 65915(b)(1)(G), which requires 100% of all units to be affordable to lower income households (excluding the manager’s units), “all units” includes the density bonus units. Section 65915(b)(1)(G) also provides an exception that up to 20% of all units may be for moderate income households. This bill also requires that the number of density bonus applications received and number of applications approved This bill requires the City to provide a density bonus or other incentives or concessions in exchange for a housing project applicant’s production of specified levels of affordable housing units. This bill also requires the City to include the number of density bonus applications received and number of applications approved in its annual report to HCD. B-2 Summary Description Impacts to the City be included in annual reports to HCD. AB 168 (Aguiar- Curry) AB 831 (Grayson) Streamlined Ministerial Multifamily Housing Approvals AB 168 (effective September 25, 2020) and AB 831 (effective September 28, 2020) make changes to the law that allows developers of multi-family housing projects in urban areas to pursue a streamlined, ministerial process to obtain entitlements under certain circumstances. AB 168 requires that a development proponent submit a notice of intent to apply to the local agency before pursuing a streamlined development. The parties are then required to engage in a consultation with any Native American tribe that is “traditionally and culturally affiliated with the geographic area [of the proposed development].” If no agreement is reached, the development proponent cannot obtain streamlined approval. This new provision does not apply to projects that were approved before the bill was enacted. AB 831 adds a mechanism for a development proponent to request a modification to a development that has been previously approved under the streamlined, ministerial process, but where a final building permit has not yet issued. Subject to certain limited exceptions, the local agency must evaluate such requested modifications for consistency with the objective planning standards using the same assumptions and analytical AB 168 requires the City to invite Native American tribes to engage in consultation regarding a proposed development’s potential effects on any tribal cultural resources. After consultation, a developer may submit a ministerial application to the City only if (1) no noticed tribe seeks, or fails to engage in, consultation; (2) no potential tribal cultural resource impact is identified; or (3) a potential tribal cultural resources is identified and the parties agree to protect the resource. AB 831 requires that the City evaluate requested modifications to a development that was previously approved under the streamlined, ministerial process using the same assumptions and analytical methodology that the City originally used to assess consistency with the objective planning standards. The City will have 60 days to make this determination, or 90 days if design review is required. The statute governing these ministerial approvals (Government Code § 65913.4) is very complex, so the most important thing is to recognize when an applicant is applying for a streamlined, ministerial procedure under this statute, and then take a thorough look at the requirements to make sure the B-3 Summary Description Impacts to the City methodology that the local agency originally used to assess consistency for the development that was approved for streamlined, ministerial approval. The new law further specifies situations when the local agency may apply objective planning standards adopted after the development application was first submitted. project complies and the City follows the proper procedures. Accessory Dwelling Unit (“ADU”) Legislation AB 3182 (Ting) Accessory Dwelling Units This bill makes two important changes to State law regarding accessory dwelling units (“ADUs”) (Government Code § 65852.2). First, State law requires that ADU applications be processed ministerially within 60 days of receipt of a completed application, unless the application is submitted simultaneously with an application to build a new single- family dwelling, in which case the local agency does not need to act on the ADU application until the local agency takes action on the application for the single-family dwelling, but must still process the ADU application within 60 days thereafter. Previous law did not include a penalty for failing to timely process the ADU application. This bill provides that the ADU application shall be deemed approved if the local agency fails to act upon the completed application within 60 days. Second, State law (Government Code § 65852.2(e)(1)(A)) previously provided that the local This bill requires the City to process ADU applications within 60 days of submission and imposes a penalty in that, if the City fails to act timely, the ADU application shall be deemed approved. However, the City does not need to act on an ADU application that is submitted simultaneously with an application for a single-family dwelling until the City approves the application for the single- family dwelling. Thereafter, the City is required to process the ADU application within 60 days of approving the application for the single-family dwelling. This bill also requires the City to approve one ADU and one junior ADU within a proposed or existing single-family dwelling. On January 19, 2021, the City Council adopted Ordinance No. 640 which, in part, repealed and replaced Chapter 17.10 (Accessory Dwelling Unit Development Standards) of Title 17 (Zoning) of the Rancho Palos Verdes Municipal Code to update ADU development B-4 Summary Description Impacts to the City agency must approve one ADU or one junior ADU within a proposed or existing single-family dwelling, subject to certain restrictions. This bill now requires the local agency to approve one ADU and one junior ADU within a proposed or existing single-family dwelling. standards consistent with the requirements of this bill. Other Housing Legislation AB 168 (Aguiar- Curry) General Plan Annual Reporting AB 168 requires cities add information to its General Plan annual report describing “the progress of the city … in adopting or amending its general plan or local open-space element in compliance with its obligations to consult with California Native American tribes, and to identify and protect, preserve, and mitigate impacts to places, features, and objects described in Sections 5097.9 and 5097.993 of the Public Resources Code, pursuant to Chapter 905 of the Statutes of 2004.” No impact – there are no Native American tribes currently at issue for the City. AB 2553 (Ting) Homeless Shelter Crisis Declarations This bill took effect September 25, 2020. Under previous law, certain enumerated cities and counties were given authority, once they declared a shelter crisis, to adopt by ordinance “reasonable local standards and procedures for the design, site development, and operation of homeless shelters and the structures and facilities therein.” These local standards and procedures apply in lieu of state and local procedures and laws to the extent the city determined that strict compliance would hinder or delay attempts to mitigate the effects of the shelter crisis. AB 2553 expands this No impact – the City has not declared a shelter crisis. B-5 Summary Description Impacts to the City program to all cities and counties statewide. AB 1561 (Garcia) Extension of Housing Entitlements, Housing Element, Tribal Consultation This bill extends “housing entitlements” issued before and in effect on March 4, 2020, and that will expire before December 31, 2021, by 18 months unless the local agency already extended these entitlements by at least 18 months. A “housing entitlement” includes most approvals, permits, or other entitlements issued by the local agency for housing development projects, including tentative tract maps and any approval subject to the Permit Streamlining Act, and ministerial approvals that are prerequisites for a building permit, except as otherwise stated in AB 1561. Exceptions include development agreements and preliminary applications. This bill also provides that, beginning in 2024, and at the discretion of HCD, a Housing Element’s analysis of actual and potential government constraints on the maintenance, improvement, or development of housing may also include an analysis of constraints on housing for persons due to their sex, race, color, religion, ancestry, national origin, disability, medical condition, genetic information, marital status, sexual orientation, citizenship, primary language, or immigration status. Finally, this bill extends the time under CEQA for California Native American Tribes to respond in This bill will require the City to extend housing entitlements issued before and in effect on March 4, 2020, and that will expire before December 31, 2021, by 18 months unless the City has already extended these entitlements by at least 18 months. The City’s current General Plan Housing Element for Planning Period 2013-2021 covers the City’s planning period from October 15, 2013 to October 15, 2021. Upon the City receiving its final Regional Housing Needs Assessment allocation, the City will be required to update the General Plan Housing Element by October 2021. The update will cover the planning period of October 2021 to October 2029. B-6 Summary Description Impacts to the City writing to a lead agency’s consultation request to a total of 60 days for housing development projects that had or have a project application completed between March 4, 2020, and December 31, 2021. AB 725 (Wicks) Regional Housing Needs & Multifamily Housing Cities and counties are required to adopt a general plan with a housing element that includes an inventory of land suitable for residential development to 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 needs. The housing element rules vary depending on whether the city or county is located in a metropolitan, nonmetropolitan, or suburban area. This bill, commencing January 1, 2022, requires at least 25% of a metropolitan jurisdiction’s share of the regional housing need for moderate residential development to be zoned such that parties are permitted to build between 4 and 100 units of housing per acre on those sites. AB 725 also clarifies certain defined terms and the definition of “suburban.” Commencing January 1, 2022, this bill requires at least 25% of the City’s share of the regional housing need for moderate residential development to be zoned such that developers are permitted to build between 4 and 100 units of housing per acre. The City is located in the Los Angeles metropolitan area. Government Code section 65583.2 establishes the housing element rules for the City’s inventory of land suitable for residential development. AB 1851 (Wicks) Parking Requirements for Religious Institution Affiliated Housing This bill prohibits a local agency from requiring the replacement of required parking spaces for a place of worship when those parking spaces are being eliminated as a part of a religious institution affiliated housing development project, provided that no more than 50% of the required parking spaces are The City will take special note of any housing project proposed next to a place of worship, especially projects with potential parking issues, and recognize that there are now specific state laws applicable to such projects. B-7 Summary Description Impacts to the City proposed for elimination. The local agency must allow the remaining parking spaces for the place of worship to be counted toward the number of parking spaces required for the housing development project. The local agency may require up to one parking space per unit in the housing development project, notwithstanding any other provision of AB 1851, unless the project is within one-half mile of public transit or there is a car share vehicle within one block. The law also prohibits a local agency from requiring that an existing parking deficiency be cured as a condition of approval of a religious institution affiliated housing development and specifies that the parking reduction provided is not a “concession” for the purposes of the Density Bonus Law. B-8