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CC SR 20211102 06 - Legislation Update and 2022 Platform CITY COUNCIL MEETING DATE: 11/02/2021 AGENDA REPORT AGENDA HEADING: Regular Business AGENDA TITLE: Consideration and possible action to receive a report on the 2021 legislative session and the City’s 2022 Legislative Platform. RECOMMENDED COUNCIL ACTION: (1) Receive and file a status report on the legislative bills the City Council took a position on during the 2021 legislative session; (2) Adopt Resolution No. 2021-__, thereby approving the City of Rancho Palos Verdes 2022 Legislative Platform; and (3) Direct Staff to issue the platform to the City’s elected officials and publish the platform on the City’s network. FISCAL IMPACT: None Amount Budgeted: N/A Additional Appropriation: N/A Account Number(s): N/A ORIGINATED BY: McKenzie Bright, Administrative Analyst REVIEWED BY: Karina Bañales, Deputy City Manager APPROVED BY: Ara Mihranian, AICP, City Manager ATTACHED SUPPORTING DOCUMENTS: A. Draft Resolution No. 2021-__, a resolution adopting the City’s 2022 Legislative Platform (page A-1) B. Draft City of Rancho Palos Verdes 2022 Legislative Platform (page B-1) BACKGROUND: Pursuant to City Council Policy No. 29, the City Council monitors bills under consideration by the state, and will take a position on a bill, depending on its potential impact to the City, Peninsula or South Bay. Over the last two legislative sessions, the City Council has taken a particular focus on bills that have the potential to erode local land use authority and local control. 1 CITYOF RANCHO PALOS VERDES The 2021 legislative session ended on September 10 and the Governor had until October 10 to take action on bills sent to him. During the 2021 legislative session, the City Council took a position on 21 bills, eight of which were passed to the Governor’s desk. Additionally, on July 6, 2021, the City Council adopted a Housing and Local Land Use Legislative Platform to respond to a series of housing bills that would erode local control. Tonight, staff is providing the City Council with a status update on the bills it took a position on, as well as establishing a legislative platform for the upcoming 2022 legislative session. DISCUSSION: Status Update on the 2021 Legislative Session The following provides a brief summary of the 21 bills the Council took a position on . Complete bill information, including copies of letters sent by the City to state representatives, is available at rpvca.gov/LegislationCorner. Bills the Governor Signed the City Council Supported: • AB 361 (Chapter 165, Statutes of 2021) allows cities to continue utilizing teleconferencing during declared states of emergency. The City Council supported this bill. • AJR 2 (Chapter 142, Statutes of 2021) issues a request to the US Congress and the US EPA to take all measures necessary to prevent further damage to California’s citizens, wildlife, and natural resources by the DDT waste dumped in the waters near Santa Catalina Island. The City Council supported this bill. Bills the Governor Signed the City Council Opposed: • AB 215 (Chapter 342, Statutes of 2021) authorizes the California Department of Housing and Community Development (HCD) to appoint or contract with other counsel if the Attorney General declines to represent the department in a lawsuit against a city. The City Council opposed this bill. • SB 9 (Chapter 162, Statutes of 2021) requires ministerial approval of lot splits and duplexes in single-family zoning. The City Council opposed this bill. Additional information on this bill is detailed later in this report. • SB 10 (Chapter 163, Statutes of 2021) allows cities to upzone by ordinance in transit-rich and urban infill sites. The City Council opposed this bill. Additional information on this bill is detailed later in this report. Bills the Governor Vetoed: • AB 339 would allow cities to have call-in and internet public participation at all City Council meetings and would require jurisdictions with populations greater than 250,000 to provide such meetings in addition to in -person public comment. The City Council supported this bill and the Governor vetoed the bill. However, the 2 Governor signed AB 361, which allows legislative bodies to continue to utilize remote/virtual platforms for meetings during declared states of emergency or where gathering in person would risk public health or safety of attendees. The City did not take a formal position on AB 361 but supported the bill’s intention of allowing remote/virtual meetings, for the benefit of enhanced transparency. AB 361 is currently applicable and a resolution implementing a hybrid virtual meeting platform for the City Council and Planning Commission meetings appears on the Council’s agenda on a monthly basis. • SB 556 would have required cities to make street light poles, traffic signal poles, utility poles, and support structures available to telecommunications providers. The City Council opposed this bill and the Governor vetoed the bill. Bills That Failed to Pass the Legislature that the City Council took a Position On: • AB 377: the City Council opposed this bill, related to limited local land use authority for stormwater permits, but it was gutted and amended to instead issue reporting requirements for water boards. • AB 500 would repeal the Coastal Commission’s oversight of development in the coastal zone and would require local governments within the coastal zone to adopt streamlined permitting procedures for ADUs in the coastal zone. The City Council opposed this bill. • AB 989 would create a state appeals board that could overturn local governments’ denial of certain housing projects. The City Council opposed this bill. • AB 1053 would reduce the quorum requirement for LA County city selection committees to one-third of all member cities. The City Council supported this bill. • AB 1251 would require a public health order issued in LA County to be based on data from each Service Planning Area. The City Council supported this bill. • AB 1258 would subject final regional housing need (RHNA) plans to judicial review. The City Council supported this bill. • AB 1295 would prohibit cities or counties from entering into a residential development agreement in a Very High Fire Hazard Severity Zone (VHFHSZ). The City Council commented on this bill. • ACA 7 would amend the State Constitution to require certain local land-use controls and zoning regulations remain within incorporated communities when in conflict over general laws. The City Council supported this bill. • SB 12 would impose significant fire hazard planning responsibilities on local governments and requires cities and counties to make specified findings on fire standards prior to permitting development in the VHFHSZ. The City Council opposed this bill. • SB 55 would prohibit the creation or approval of a new commercial or residential development in a VHFHSZ unless strategies are met. The City Council opposed this bill. • SB 63 would make multiple changes in state law related to fire prevention efforts, including expanding the area where fire safety building standards apply. The City Council opposed this bill. 3 • SB 210 would require that data collected by an ALPR camera be deleted after 24 hours unless it is on a hot list. The City Council opposed this bill. • SB 262 would require bail to be set at $0 for all offenses except, among others, serious or violent felonies, violations of specified protective orders, domestic violence, sex offenses, and driving under the influence. The City Council opposed this bill. • SB 809 would allow cities and counties to exchange land for RHNA shares for compensation for the development of that land. The City Council supported this bill. It should be noted that many of the above-mentioned bills may be taken up again during the next legislative cycle. The 2022 legislative session will begin on January 3, 2022. Thus, Staff recommends receiving and filing the above legislative update for 2021. Rancho Palos Verdes 2022 Legislative Platform Many cities and other organizations that frequently take positions on federal and state legislation adopt an annual legislative program or platform. Legislative platforms outline policy statements regarding legislative and regulatory issues that are of interest to the organization and are likely to come forward during the legislative session. On July 6, 2021, the City Council adopted Resolution No. 2021-31, adopting the City’s Housing and Local Land Use Legislative Platform. The Housing Platform was in response to the housing crisis and recent increase in housing/local land use legislation proposed by the California Legislature that had the potential to erode local control. Staff is recommending the City Council consider adopting a broader 2022 Legislative Platform, as drafted (see Attachment B), which includes a Housing and Land Use Appendix detailing the information from the existing platform. The 2022 Legislative Platform outlines the City’s policies on the following components: • Housing and Local Land Use • Public Safety • Community Services • Environmental Quality • Government Transparency and Effectiveness • Appendix A: Housing and Local Land Use Legislative Platform The 2022 Legislative Platform consolidates the positions the Council has taken on a variety of bills and is designed to provide City Staff, as well as the City’s federal and state legislative delegation, with general guidance on legislative and regulatory issues of interest and concern to the City Council. The Legislative Platform will also inform organizations with an advocacy presence in Washington and Sacramento, such as the League of California Cities, California Contract Cities Association, and South Bay Cities Council of Governments of the Rancho Palos Verdes City Council’s legislative interests. The Platform will assist Staff in communicating about legislative and regulatory issues of 4 interest and concern and will enable Staff to quickly act in the event an issue of direct impact to the City requires immediate attention. The primary purpose of the Platform is to help guide Staff in monitoring bills of interest to the City. It is Staff’s intention that all bills of interest will be brought before the City Council in accordance with City Council Policy No. 29 for a formal position. If a bill requires immediate attention, the City Council shall be notified of the City’s intention to send a letter, signed by the City Manager, expressing the City’s proposed position. The bill will be brought before the City Council at its next meeting to adopt a formal position, as indicated by a letter signed by the Mayor. If acceptable, Staff recommends adopting the attached Resolution thereby approving the City’s 2022 Legislative Platform. ADDITIONAL INFORMATION: Peninsula Housing and Local Land Use Lobbyist The Cities of Rancho Palos Verdes, Rolling Hills, and Palos Verdes Estates are evaluating the results from a joint request for proposals (RFP) for a lobbyist to represent the cities’ housing and land use positions to the state and advise the cities on positions to take. The City of RPV’s Housing and Local Land Use Legislative Platform was used in the RFP to outline the cities’ position. If all three cities agree to the proposed contract terms, the joint contract will come before the City Council for approval. One or more of the cities have expressed concerns over the cost and need for a joint lobbyist, at this time considering many of the housing bills we opposed have passed, and they may decide not to move forward. Staff from the three cities are meeting on Thursday, November 4 to discuss these options. Should one or more of the cities decline participating in the joint contract, it is unlikely it will continue to move forward as a lobbyist representing the Peninsula. The City Council may then choose to move forward independently. Senate Bill Nos. 8, 9 and 10 Analyses from the City Attorney’s Office The City Attorney’s Office has prepared an analysis of SB 8, 9, and 10. The City Council did not take a position on SB 8 and opposed SB 9 and 10. Governor Newsom signed all three bills and will take effect on January 1, 2022. The City Attorney’s Office is preparing what legal options the City has, which will come before the City Council at a future meeting. I. Senate Bill 8 – Extension and Amendment of Senate Bill 330 SB 8 is essentially an extension and modification of SB 330, also known as the Housing Crisis Act of 2019, which took effect on January 1, 2020. SB 330 implemented several measures aimed at streamlining the appr oval process for housing development projects and increasing housing production, including the following: 5 a. It created the preliminary application process, which allows housing developers to lock in the development standards applicable to a housing project by filing a pared - down “preliminary application.” Subject to limited exceptions, cities must consider housing development applications based on the general plan, zoning, and subdivision standards that were in place on the date the completed preliminary application was submitted. b. It limited cities to a total of five hearings to consider approval of a housing development application after the application is deemed complete. c. It placed limits on the criteria cities could use when determining if a housing application was complete. d. It prohibited “affected cities” from enacting any development policy, standard, or condition that would have the effect of reducing the intensity of the land use of a parcel where housing is an allowable use below what was allowed under the city’s policies and ordinances in effect on January 1, 2018. SB 330 was previously set to expire on January 1, 2025. SB 8 has now extended the applicable term of SB 330 until January 1, 2030. SB 8 also modifies or clarifies several provisions of SB 330, including the following: a. SB 330 allows cities to apply standards to housing projects that were adopted after the preliminary application was submitted in a few situations, including when the housing project has not commenced construction within 2 ½ years following the date the project received final approval. SB 8 extends this time period to 3 ½ years for affordable housing projects (as defined in Government Code Section 65589.5(o)(2)(D)(i)). b. SB 8 clarifies that “hearing,” for purposes of the 5-hearing limitation in Government Code Section 95905.5, includes (i) appeals, except for appeals of a legislative approval such as a general plan or zoning amendment, and (ii) a “meeting related to [Government Code] Section 65915.” Government Code Section 65915(d) and (e), part of California’s density bonus law, allow the developer to request a “meeting” with a city to discuss development incentives and concessions, or other reductions of development standards. Such a meeting now counts toward the 5- hearing limit. c. As described above, SB 330 prohibits affected cities from reducing the intensity of land use (for parcels where housing is an allowable use) below what was in effect on January 1, 2018. However, there is an exception when the city “concurrently” changes the standards applicable to other parcels so that there is no net loss in residential capacity. SB 8 clarifies that this exception includes actions by the legislative body through the initiative process, and also clarifies the meaning of “concurrently” in different situations. (See changes to Gov. Code § 66300(i).) 6 d. SB 330 requires developers to provide relocation benefits to existing tenants when a housing development project will require the demolition of occupied or vacant “protected units” (essentially, rent-controlled units or units with affordability covenants) and a right of first refusal of a comparable unit in the new housing development at an affordable rent or sale price. SB 8 places limits on these requirements. For more details, see revisions made to GC Section 66300(d). II. Senate Bill 9 – Ministerial Approval of Two Units and Lot Splits SB 9 requires the ministerial approval of two units on parcels in a single -family zone and the ministerial approval of lots splits for parcels in a single-family zone, subject to certain requirements. A separate section (C) is provided below to address how ADUs and JADUs are handled under SB 9. Section (D), below, addresses how SB 9 relates to HOAs and CC&Rs. SB 9 also amends requirements in the Subdivision Map Act regarding the initial duration of all tentative maps. These amendments are discussed in section (E), below. A. Ministerial Approval of Two Dwelling Units (Gov. Code § 65852.21): SB 9 requires cities to ministerially approve two residential units on a single parcel in a single-family residential zone, without discretionary review or hearing, if the proposed development meets certain requirements. This includes both a proposal for two new units and a proposal to add one new unit to a parcel with one existing unit. a. Requirements for Approval In order to qualify for ministerial approval, a proposed residential development must meet the following requirements: i. The subject parcel must be located in a city that includes some portion of either an “urbanized area” or an “urban cluster,” as designated by the U.S. Census Bureau. Notably, the parcel itself is not required to be in the urbanized area or urban cluster. ii. The subject parcel must meet the requirements in Government Code Section 65913.4(a)(6)(B)-(K). Essentially, the parcel may not be located in or on: (1) prime farmland, farmland of statewide importance, or land zoned or designated for agricultural protection or preservation by an approved local ballot measure; (2) wetlands; (3) a very high fire severity zone, as determined by the California Department of Forestry and Fire Protection, unless the site has been excluded from the specified hazard zones by a local agency or the site has adopted fire hazard mitigation measures pursuant to existing building standards or state fire mitigation measures applicable to the development; however, state law requires that such building standards are implemented for every new structure, effectively allowing SB 9 development in the City’s very high fire severity zones; (4) a hazardous waste site; (5) a delineated earthquake fault zone, as determined 7 by the State Geologist; (6) a special flood hazard area subject to inundation by the 100-year flood, as determined by FEMA; (7) a regulatory floodway, as determined by FEMA; (8) land identified for conservation in an adopted natural community conservation plan; (9) habitat for protected species; or (10) land under a conservation easement. iii. The proposed housing development must not require the demolition or alteration of any of the following types of housing: housing restricted to affordable rent by a covenant, ordinance, or other law; housing subject to any form of rent or price control; or housing that has been occupied by a tenant in the last three years. iv. An owner of residential property on the parcel must not have exercised the owner’s rights under Government Code Section 7060 et seq. to withdraw accommodations from rent or lease within 15 years before the date that the development proponent submits an application. v. The proposed development must not allow the demolition of more than 25% of existing exterior structural walls, unless: (i) allowed by a local ordinance or (ii) the site has not been occupied by a tenant in the last three years. vi. The parcel must not be located in a historic district or property included in the State Historic Resources Inventory, or on a site designated as a city or county landmark or historic property or district pursuant to a city or county ordinance. b. Development Standards A city may impose objective zoning, subdivision, and design review standards on these residential developments. Objective standards are standards that involve no personal or subjective judgment by a public official and are uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the applicant or development proponent and the public official prior to submittal, and includes only such standards as are published and adopted by ordinance or resolution by a loca l jurisdiction before submission of a development application. However, the following limitations apply (many of which are similar to the limitations on development standards for ADUs): i. Size. The city cannot impose any standards that would have the effect of physically precluding the construction of up to two units or that would physically preclude either of the two units from being at least 800 square feet in floor area. ii. Setbacks. The city cannot require a more restrictive setback for an existing structure or a structure constructed in the same location and to the same dimensions as an existing structure. In all other situations, the city may require a setback of up to 4 feet from the side and rear lot lines. 8 iii. Connected Units. The units may either be detached from one another or connected, so long as the units meet building code safety standards and are sufficient to allow separate conveyance. iv. Parking. The city can require up to one off-street parking space per unit, except that a city cannot impose any parking requirements if either: (i) the parcel is located within a half-mile walking distance of a high-quality transit corridor or a major transit stop (see definitions in Public Resources Code Sections 21155 and 21064.3), or (ii) there is a car share v ehicle located within one block of the parcel. v. Wastewater. For residential units connected to an onsite wastewater treatment system, the city may require a percolation test completed within the last 5 years, or, if the percolation test has been recertifie d, within the last 10 years. c. Grounds for Denial Notwithstanding the requirement for ministerial approval, a city may deny a proposed housing development project if the building official makes a written finding based upon a preponderance of the evidence, that the proposed housing development project would have a specific adverse impact, as defined Government Code Section 65589.5(d)(2), upon public health and safety or the physical environment, and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact. d. No Short-Term Rentals Cities must prohibit rental of any unit created under this law for a term of 30 days or less. This can be done through a covenant recorded on the property, as is commonly done with ADUs. e. Annual Housing Element Report Units constructed pursuant to this law must be included in the city’s annual housing element report. (See Gov. Code § 65400(a)(2)(I).) f. Charter Cities and Coastal Act This law applies to general law and charter cities. This law does not supersede the Coastal Act, except that a city is not required to hold public hearings for coastal development permit applications for lot splits under this law. g. California Environmental Quality Act (CEQA) Adoption of an ordinance to implement this law (Government Code Section 65852.21) is not a project for purposes of CEQA and is therefore not subject to CEQA review. B. Ministerial Approval of Lot Split (Government Code § 66411.7): SB 9 also requires cities to ministerially approve a parcel map for a lot split, if the lot split meets certain requirements. 9 a. Requirements for Approval In order to qualify for ministerial approval, the parcel map must meet the following requirements: i. The map can only create two parcels. ii. Neither new parcel may be smaller than 40% of the lot area of the original parcel being divided. Furthermore, neither new parcel shall be smaller than 1,200 square feet, except that the city may adopt a smaller minimum lot size that will be subject to ministerial approval. iii. The parcel being divided must be in a single-family residential zone. iv. The parcel being divided must be located in a city that includes some portion of either an “urbanized area” or an “urban cluster,” as designated by the U.S. Census Bureau. Notably, the parcel itself is not required to be in the urbanized area or urban cluster. v. The parcel being divided must meet the requirements in Government Code Section 65913.4(a)(6)(B)-(K). (See explanation in Section A.a.ii, above.) vi. The proposed lot split must not require the demolition or alteration of any of the following types of housing: housing restricted to affordable rent by a covenant, ordinance, or other law; housing subject to any form of rent or price control; or housing that has been occupied by a tenant in the last three years. vii. The parcel being divided must not be located in a historic district or property included in the State Historic Resources Inventory, or on a site designated as a city or county landmark or historic property or district pursuant to a city or county ordinance. viii. The parcel being divided must not have been established through a prior lot split under this law. ix. Neither the owner of the parcel being divided nor any other person act ing in concert with the owner shall have previously subdivided any adjacent parcel under this law. x. The lot split must conform to all applicable requirements of the Subdivision Map Act, except as otherwise expressly provided by this law. b. Development Standards A city may impose objective zoning, subdivision, and design review standards on parcels created by a lot split under this law. However, the following limitations apply (many of which are similar to the limitations on development standards for ADUs): 10 i. Size. The city cannot impose any standards that would have the effect of physically precluding the construction of two units on either of the resulting parcels or that would result in a unit size of less than 800 square feet. ii. Setbacks. The city cannot require a more restrictive setback for an existing structure or a structure constructed in the same location and to the same dimensions as an existing structure. In all other situations, the city may require a setback of up to 4 feet from the side and rear lot lines. iii. Easements. The city may require easements for the provision of public services and facilities. iv. Access to Right-of-Way. The city may require that the new parcels have access to, provide access to, or adjoin the public right -of-way. v. Parking. The city can require up to one off-street parking space per unit, except that a city cannot impose any parking requirements if either: (i) the parcel is located within a half mile walking distance of a high -quality transit corridor or a major transit stop (see definitions in Public Resources Code Sections 21155 and 21064.3), or (ii) there is a car share vehicle located within one block of the parcel. c. Other Requirements and Limitations The following additional requirements and limitations also apply: i. Residential Uses Only. The city must require that only residential uses are allowed on a new parcel created by this law. ii. No Dedications or Offsite Improvements. The city may not require dedications of right-of-way or the construction of off-site improvements as a condition of approving a lot split under this law. iii. Owner Occupancy. The city must require an applicant for a lot split under this law to sign an affidavit stating that the applicant intends to occupy one of the housing units as their primary residence for a minimum of three years from the date of the approval of the lot split. However, this requirement does not apply if the applicant is a community land trust or a qualified nonprofit corporation. No other owner-occupancy requirements may be imposed. iv. No Short-Term Rentals. Cities must prohibit rental of any unit created under this law for a term of 30 days or less. This can be done through a covenant recorded on the property, as is commonly done with ADUs. v. Non-Conforming Zoning Conditions. Cities cannot require the correction of non-conforming zoning conditions as a condition of approval of a parcel map under this law. 11 d. Grounds for Denial Notwithstanding the requirement for ministerial approval, a city may deny a proposed lost split under this law if the building official makes a written finding based upon a preponderance of the evidence, that the proposed housing development project would have a specific adverse impact, as defined Government Code Section 65589.5(d)(2), upon public health and safety or the physical environment and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact. e. Annual Housing Element Report The number of applications for lot splits under this law must be included in the city’s annual housing element report. (See Gov. Code § 65400(a)(2)(I).) f. Charter Cities and Coastal Act This law applies to general law and charter cities. This law does not supersede the Coastal Act, except that a city is not required to hold public hearings for coastal development permit applications for lot splits under this law. C. Accessory Dwelling Units Under SB 9: Subject to certain requirements, cities are usually required to ministerially approve applications for accessory dwelling units (ADUs) and junior accessory dwelling units (JADUs) on residential lots. However, SB 9 makes a few exceptions to this rule. a. New Parcels Created by Lot Split Under SB 9. Cities are not required to permit more than two units on any parcel created by a lot split under SB 9. (See Gov. Code § 65852.21(f) & 66411.7(j).) For purposes of this law, “unit” includes ADUs and JADUs. For example, imagine the owner of a lot created two new parcels through an SB 9 lot split, and built one single-family home on each new parcel. Under normal circumstances, the city would be required to approve an application for both an ADU and a JADU on each of those parcels (resulting in 3 units on each parcel). However, under SB 9, the city only has to approve either an ADU or a JADU, but not both (for a total of 2 units). As a variation of this example, imagine the owner of a lot created two new parcels through an SB 9 lot split, and built 2 single-family homes on each new parcel, using the authority provided by SB 9. In this circumstance, each parcel already has 2 units on it, so the city is not required to permit either an ADU or a JADU on either parcel. b. Parcels With Two Units, But Not Resulting from a Lot Split Under SB 9 . If the owner of a parcel builds two units on the parcel using the authorization in SB 9, but does not split the lot, then standard ADU/JADU law applies to that parcel. SB 9 does not create an exception to ADU/JADU law in this circumstance. Consequently, up to 4 units (including ADUs and JADUs) could be built on such a parcel. 12 D. Homeowners Associations (HOAs) and CC&Rs: SB 9 does not place any limits on the ability of a homeowners association or other private parties to prohibit lot splits or prohibit more than one primary dwelling unit on each lot. Effective January 1, 2020, the state legislature prohibited provisions i n CC&Rs and other deed restrictions that effectively prohibit or unreasonably restrict the construction or use of an ADU or JADU on a single-family lot. (See Gov. Code § 4751.) However, so far, no such provision has been adopted prohibiting HOAs and private parties from limiting the implementation of SB 9. In other words, if an HOA amended its CC&Rs to prohibit lot splits or to prohibit more than one primary dwelling unit per parcel, it currently appears that this requirement would be valid. E. Initial Duration of Tentative Maps: SB 9 also makes amendments to Government Code Section 66452.6, regarding the initial duration of tentative maps. Under current law, an approved tentative map has an initial life of 24 months, except that a city may extend the in itial life up to 12 additional months, for a total of 36 months. Under SB 9, cities may now allow tentative maps to have an initial life of 48 months. III. Senate Bill 10 – Enables Upzoning Where Otherwise Limited *Note: There is at least one current lawsuit challenging the constitutionality of SB 10, so the future of this bill is uncertain. SB 10 (codified at Government Code Section 65913.5) allows a city council to override any local density controls – including restrictions enacted by local initiative – in order to re-zone a parcel for up to 10 residential units per parcel, subject to certain limitations. a. Location of Parcels. This law is limited to parcels in “transit-rich areas” and “urban infill sites,” as defined. Furthermore, it does not apply to parcels located in a very high fire hazard severity zone, as determined by the California Department of Forestry and Fire Protection, unless the site has adopted fire hazard mitigation measures pursuant to existing state standards or state fire mitigation measure s applicable to the development. Similar to the SB 9 exemption, such standards must be adopted by law for new developments, so SB 10 also functionally applies to parcels located in a very high fire hazard severity zone. b. Limitation for Open-Space, Parks, and Recreation Land. This law does not allow a city council to override any local restriction enacted or approved by a local initiative that designates publicly owned land as open-space land (as defined in Government Code Section 65560(h)), or for park or recreation purposes. c. Procedural Requirements. When adopting a zoning ordinance pursuant to this law, a city must comply with the following requirements: i. The ordinance must include a statement that the ordinance is adopted pursuant to this law and must clearly demarcate the areas that are being rezoned. 13 ii. The city council must make a finding that the increased density authorized by the ordinance is consistent with the city’s obligation to affirmatively further fair housing, pursuant to Government Code Section 8899.50. iii. If the ordinance overrides any zoning restriction established by a local initiative, the ordinance may only take effect if adopted by a two-thirds vote of the members of the city council. d. CEQA. i. Zoning Ordinance. An ordinance adopted pursuant to this law does not count as a “project” for CEQA purposes and is therefore not subject to CEQA review. ii. Development Project. This law also establishes CEQA requirements for projects developed on a site that is rezoned pursuant to this section, but they are too complicated to be helpfully summarized. Please refer CEQA questions to the City Attorney’s office. e. Additional Limitations. An ordinance adopted pursuant to this law cannot reduce the density of any parcel. Furthermore, if the density of a parcel is increased under this law, the city council cannot subsequently reduce the density of the parcel. f. Partial Sunset Clause. Zoning ordinances enacted under this law must be adopted before January 1, 2029, but ordinances enacted under this law may be effective beyond January 1, 2029. IV. Options for Responding to These Bills The response that a city will have to these new laws will vary for city to city depending on each city’s approach to housing issues. However, here are a few possible responses to consider: a. SB 8. No actions are needed in response to SB 8, other than to be aware of the revisions to the SB 330 requirements and act in compliance with them. b. Actions to Encourage Development of Housing. If a city wants to make it easier to develop housing, the city can do all or some of the following: i. Adopt an ordinance decreasing the allowable size of a new parcel resulting from a lot split. (See Section II.B.a(ii) of this memo.) ii. Adopt more lenient standards for when existing walls may be demolished as part of project placing two units on a lot. (See Section II.A.a(v) of this memo.) iii. Revise the city’s subdivision ordinance to allow tentative maps to have an initial life of 48 months. (See Section II.E of this memo.) 14 iv. Consider upzoning an otherwise restricted property pursuant to SB 10. However, please consult with our office regarding the status of current litigation concerning SB 10. (See Section III of this memo.) c. Actions to Maximize Local Control of Housing and Limit Utilization of SB 9. i. Adopt Objective Development Standards. In order to preserve maximum local control, cities should review the city’s current zoning, subdivision, and design review standards applicable to single-family homes, duplexes, and lot splits, and ensure that these are objective and cover all of the issues the city is concerned about. Standards that are not objective will not be enforceable, if challenged. If revisions are necessary, these revisions should be made as soon as possible, as SB 9 goes into effect on January 1, 2022. Objective standards are defined as: “standards that involve no personal or subjective judgment by a public official and are uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official prior to submittal. These standards may be embodied in alternative objective land use specifications adopted by a local agency, and may include, but are not limited to, housing overlay zones, specific plans, inclusionary zoning ordinances, and density bonus ordinances.” ii. Limit on Size of SB 9 Unit. Perhaps the most important objective development standard cities should consider adopting is a limit on the size of units created under SB 9 or units on parcels that result from an SB 9 lot split. The smallest limit cities may set is 800 square feet per unit. Strict limits on size may discourage utilization of SB 9 because the size limit may make the units undesirable or economically infeasible to develop. iii. Fire Hazard Severity Zones and Other Restricted Locations . Cities should review what portions, if any, of their cities are within restricted zones, which are excluded from SB 9. Perhaps most pertinently, these areas include high and very high fire hazard severity zones and historic districts. Notably, the fire zone exception does not apply if the site has adopted fire hazard mitigation measures pursuant to existing state standards or state fire mitigation measures applicable to the development. Therefore, as all new development is required to follow California State Building Codes, which include fire standards and mitigation measures, SB 9 does apply to any new developments in the very high fire zones in the City. (See Section II.A.a(ii) and Section II.B.a(v) of this memo for a full list of exempt locations.) d. Update Zoning and Subdivision Ordinances. Eventually, cities may wish to update their zoning and subdivision ordinances, including but not limited to permitted uses in single-family zones and lot split requirements, to incorporate SB 9 requirements. However, SB 9 will preempt any 15 inconsistencies in local codes, so there is no need to have these changes in place by January 1, 2022. e. CC&Rs and Other Deed Restrictions – Private Option. City residents concerned about these laws, and who live in housing tracts with HOAs, may wish to work with their HOAs to amend the CC&Rs governing to tract to prohibit lot splits and more than one primary dwelling on each parcel. Residents that do not live in developments with HOAs may still be able to enter into restrictive covenants with their neighbors including the same prohibitions. However, this will require private action and is outside of city control. Furthermore, city residents should seek private legal advice about the legality of such covenants and restrictions. CONCLUSION: In response to the increasing advocacy efforts of the City on behalf of residents, and to memorialize the City’s positions, Staff recommends the City Council adopt the attached resolution (Attachment A) thereby approving, as drafted or with revisions, the City of Rancho Palos Verdes 2022 Legislative Platform (Attachment B). The platform could also be used to provide a future lobbyist a summary of the City’s positions to inform their advocacy efforts. ALTERNATIVES: In addition to the Staff recommendation, the following alternative actions are available for the City Council’s consideration: 1. Identify revised language to add to the legislative platform. 2. Do not adopt Resolution 2021-__ thereby maintaining the City’s Housing and Local Land Use Legislative Platform but not memorializing the City’s position on other areas of interest and/or concern. 3. Take other action, as deemed appropriate. 16 Resolution No. 2021-__ Page 1 of 2 RESOLUTION NO. 2021-__ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES, CALIFORNIA, ADOPTING THE CITY’S 2022 LEGISLATIVE PLATFORM WHEREAS, the City Council has an interest in weighing in on state, federal, and regional legislative issues that impact the City and its residents; and WHEREAS, the Council annually takes action on numerous legislative proposals brought forward throughout the year; and WHEREAS, the City of Rancho Palos Verdes is committed to maintaining and enhancing a high quality of life and safety for all residents; and WHEREAS, on August 4, 2020, the City of Rancho Palos Verdes adopted Resolution No. 2020-46, expressing opposition to proposed planning and zoning legislation that usurps local control and imposes unfunded mandates, and expressing support for actions to further strengthen local democracy, authority and control; and WHEREAS, on July 6, 2021, the City of Rancho Palos Verdes adopted Resolution No. 2021-31, adopting the City’s Housing and Local Land Use Legislative Platform; and WHEREAS, the City Council continues to take an active advocacy role on a variety of topics, including housing and local land use legislative policies, proposed by the State Legislature. NOW, THEREFORE, the City Council of the City of Rancho Palos Verdes does hereby resolve as follows: Section 1: The foregoing recitals are true and correct and are incorporated herein by reference. Section 2: The City Council hereby adopts and approves the City’s 2022 Legislative Platform attached and incorporated herein by this reference, as the official legislative policy of the City of Rancho Palos Verdes. Section 3: The 2022 Legislative Platform will be used to guide legislative advocacy including position letters on proposed legislation. A-1 Resolution No. 2021-__ Page 2 of 2 Section 4: The City Clerk shall certify to the passage, approval, and adoption of this resolution, and shall cause this resolution and its certification to be entered in the Book of Resolutions of the City Council of the City. PASSED, APPROVED AND ADOPTED THE 2nd DAY OF NOVEMBER 2021. ___________________________ Eric Alegria, Mayor ATTEST: ___________________________ Teresa Takaoka, City Clerk State of California ) County of Los Angeles ) ss City of Rancho Palos Verdes ) I, Teresa Takaoka, City Clerk of the City of Rancho Palos Verdes, hereby certify that the above Resolution No. 2021-__ was duly and regularly passed and adopted by the said City Council at a regular meeting thereof held on November 2, 2021. ________________________ Teresa Takaoka, City Clerk A-2 CITY OF RANCHO PALOS VERDES 2022 LEGISLATIVE PLATFORM DATE ADOPTED: Resolution No. 2021-__ on November 2, 2021. PURPOSE The City of Rancho Palos Verdes’ 2022 Legislative Platform (Platform) outlines the policy positions of the City Council on current issues which directly or indirectly impact the City. This Platform serves as a guideline to actively pursue pending legislation through monitoring and communications activities and is primarily based upon positions previously adopted by the City Council. The City looks forward to working with regional, state, and federal partners to best serve residents. The statements outlined in the Platform represent the City’s general position on legislative and regulatory issues of interest and concern. 1. HOUSING AND LOCAL LAND USE A. Oppose legislation that usurps local control and erodes the City’s authority to control its own affairs. Support actions which further strengthen local democracy, authority, and control. The City’s Housing and Local Land Use Legislative Platform is incorporated herein by reference (see Appendix A). B. Support policies or programs that allow city and state collaboration on housing production, alongside sustainable transportation, broadband deployment, and other key infrastructure areas to support our communities. Support state grants or programs which provide funds to cities and/or developers to encourage affordable housing development. C. Oppose legislation that penalizes a city or local government if the units identified in the Regional Housing Needs Allocation (RHNA) are not constructed. Oppose legislation that proposes to convert RHNA from a planning process to a production standard. D. Support legislation that preserves local authority to manage public rights -of-way including the appearance and aesthetics of equipment placed within them. E. Support legislation that preserves local authority to zone and plan for the deployment of telecommunications infrastructure in public rights-of-way. F. Oppose legislation that diminishes the authority of local jurisdictions to process permits and enforce building codes or mandates the manner of enforcement. B-1 CITYOF RANCHO PALOS VERDES 2022 Legislative Platform Page 2 G. Oppose legislation that seeks to limit or eliminate municipal authority to regulate street or sidewalk vendors. H. Support legislation and administrative actions that protect the ability for a local jurisdiction to preserve open space in and around a local government’s jurisdiction. I. Support legislation and administrative actions that provide state and federal funding for major public works projects such as the Portuguese Bend Landslide Remediation Project. 2. PUBLIC SAFETY A. Support legislation that enhances emergency preparedness, resiliency and public safety. B. Support legislation that strengthens and enforces legal protections for all individuals who are victims of crimes. C. Support measures that provide funding to local agencies for training, effective disaster preparedness, sheriff’s station infrastructure, fire department infrastructure, and emergency planning. D. Support legislation, regulations, or administrative actions ensuring all cities, including contract cities, have equal access to public safety funding. E. Support legislation which maintains law enforcement’s ability to utilize automatic license plate reading (ALPR) cameras as an investigatory tool. F. Support legislation to accelerate the development and implementation of enhanced electrical utility infrastructure, including undergrounding of utility equipment that ensures reliable utility service and public safety and prevents the use of public safety power shutoffs. 3. COMMUNITY SERVICES A. Support legislation and local, state and federal programs that employ evidence- based best practice strategies to reduce the number of people experiencing homelessness by preventing homelessness for those at risk; providing emergency and transitional housing; expanding permanent affordable housing ; and promoting self-empowerment through counseling, job training, and other supportive services. B. Support legislation and local, state, and federal programs that reduce the number of people experiencing homelessness by promoting mental health and substanc e abuse services; providing emergency and transitional housing; expanding permanent affordable/supportive housing; and promoting self-empowerment B-2 2022 Legislative Platform Page 3 through counseling, job training, and other supportive services for those who suffer from mental health issues and/or substance abuse. 4. ENVIRONMENTAL QUALITY A. Support legislation, regulations, or administrative actions to remediate the harmful effects of dichloro-diphenyl-trichloroethane (DDT) and other chemicals in coastal waters, especially near Santa Catalina Island and the Palos Verdes Peninsula. B. Support legislation that provides rebate programs, tax credits, and other financial incentives that encourage property owners to invest in water efficient systems and landscaping and energy efficiency and renewable energy systems. 5. GOVERNMENT TRANSPARENCY AND EFFECTIVENESS A. Support legislation that grants full cost reimbursement to local agencies by the state and federal government for all mandated programs. B. Support legislation that ensures the retention of existing local revenue sources, including the City’s share of property taxes, sales and use taxes, transient occupancy taxes, etc. C. Support legislation that will enhance revenue for cities. D. Support legislation that allows for the continued use of teleconferencing platforms to continue holding hybrid public meetings outside of a declared state of emergency. Hybrid meetings increase access to public meetings and encourage greater transparency. E. Support legislation or public health orders that consider regional factors when determining public health needs within Los Angeles County. F. Oppose legislation that would prohibit or limit local governments’ ability to contract out for the provision of services. B-3 2022 Legislative Platform Page A-1 APPENDIX A: CITY OF RANCHO PALOS VERDES HOUSING AND LOCAL LAND USE LEGISLATIVE PLATFORM DATE ADOPTED: Resolution No. 2021-31 on July 6, 2021. EXECUTIVE SUMMARY In response to the housing crisis and recent legislation proposed by the California Legislature: • The City of Rancho Palos Verdes opposes proposed planning and zoning legislation that usurps local control and imposes unfunded mandates. • The City supports actions to further strengthen local democracy, authority, and control. • The City would support housing policies which include funded mandates or create funded programs such as Local Early Action Planning (LEAP) and Regional Early Action Planning (REAP) to assist local planning efforts. • The City would support policies that provide incentives to cities such as additional tax revenue or tax breaks and policies which grant concessions to existing policies for adoption of pro-housing policies. • The City would support policies or grants directed toward developers to incentivize the creation of affordable housing. • The City would support policies which expand programs such as Project Homekey, which repurpose existing buildings into an affordable housing option. • The City would support policies and programs which provide social services and mental health services to help unhoused persons be eligible for, acquire, and maintain affordable housing. • The City would support policies or programs that allow city and state collaboration on housing production, alongside sustainable transportation, broadband deployment, and other key infrastructure areas to support our communities. BACKGROUND The City of Rancho Palos Verdes is located on the Palos Verdes Peninsula in Los Angeles County, California, and incorporated in 1973. The City is primarily comprised of residential zones and open space, is nearly entirely located within a Cal Fire-designated Very High Fire Hazard Severity Zone (VHFHSZ), and is partially located in the state- B-4 2022 Legislative Platform Page A-2 designated coastal zone. Moreover, approximately 1,200 acres of the City is within the Portuguese Bend Landslide complex, the largest and fastest moving landslide in North America. The City of Rancho Palos Verdes recognizes that California is in the middle of a housing crisis. Housing stock cannot meet present demand and lack of affordable housing makes existing stock cost prohibitive. The Legislature has an apparent focus on passing laws which aim to mitigate the housing crisis through rescission of local land use authority and oversight to streamline the process of constructing additional units. These laws create a one-size-fits-all approach that fail to consider local authority and essential local oversight, including constraints faced by local agencies such as infrastructure limitations. The City is committed to maintaining and enhancing a high quality of life and safety for all residents as reflected in its General Plan, updated as of 2018. Local land use authority is essential to ensuring that all new developments are suitable and safe for our community, and to allow the City and developers to work together to find the most mutually beneficial arrangement for all residents in the City. Development within the City faces a number of unique challenges. Despite this, the City has a vibrant and well-planned mix of residential, commercial, and industrial uses. There are 8,274 acres of land within the City of Rancho Palos Verdes. The City has determined that 1,710 acres (or 20%) of land are not suitable for development. These include Natural Environment/Hazard Areas which are lands designated as “Hazard,” “Open Space Hillside” and “Open Space Preserve” by the Land Use Element. The areas designated “Hazard” possess extreme physical constraints, such as active landslide1, sea cliff erosion hazard, and extreme slopes of 35 percent and greater. The areas designated “Open Space Hillside” are subject to extreme physical constraints and are maintained as open space, with very light -intensity uses permitted, such as landscaping, agriculture, passive recreational activities, and very minor structures, for the protection of the public health, safety, and welfare. The areas designated “Open Space Preserve” encompass the City’s Palos Verdes Nature Preserve, which is approximately 1,400 acres of permanent open space. The City’s Preserve is enrolled in the State’s Natural Communities Conservation Plan and the Federal Habitat Conservation Plan (NCCP/HCP) and is encumbered with restrictions, held in perpetuity, for the preservation and protection of natural resources and habitat. 1 The Portuguese Bend Landslide is one of the largest and most active landslides in the country and encompasses over two of the City's roughly 14 square miles, moves at a rate between hundredths of an inch per year and tens of feet per year. This movement is especially noticed by motorists, cyclists and pedestrians who travel along Palos Verdes Drive South. The City continuously maintains a safe roadway through the area at a cost of about a half million dollars per year. An above-ground sewer trunk line is in jeopardy of failing with land movement that has the potential to cause a significant environmental catastrophe due to its close proximity to the Pacific Ocean. B-5 2022 Legislative Platform Page A-3 Residential activities are the major land use in the City , with existing and proposed residential uses encompassing approximately 5,500 acres (66.5% of the total land area). The predominance of residential use and related density ranges is based on several factors: the ability of residential activity to produce low environmental stress, the geographic location of the community with no major transportation facilities, the geology of the site, lack of market potential for any major commercial development, and need for support facilities to meet the community’s demand. As such, it is vital that local control be maintained to ensure public health and safety. One- size-fits-all legislation with ministerial review requirements cannot take into account the unique geographic, geologic, and infrastructure constraints required for a project to be successful and to maintain or enhance public safety. RECENT LEGISLATIVE POSITIONS On August 4, 2020, the City Council adopted Resolution No. 2020-46 expressing opposition to proposed planning and zoning legislation that usurps local control and imposes unfunded mandates and expressing support for actions to further strengthen local democracy, authority, and control. It furthermore declares that, should the state continue to pass legislation that attacks local municipal authority, control and revenue, the City of Rancho Palos Verdes will support actions such as a ballot measure that would limit the state’s ability to control local activities and strengthen local democracy and authority. The City has registered its strong opposition to the current practice of the Legislature of proposing and passing multitudes of bills that directly impact and interfere with the ability of cities to control their own destiny through use of zoning authority that has been granted to them. While the City appreciates the work of the Legislature to propose policies intended to mitigate the housing crisis, sweeping and ministerial measures cannot properly assess their impact on individual communities and their general plans. Streamlined ministerial approval may be a preferred housing solution for the Legislature, but such development may have significantly detrimental effects on public health and safety. The City is concerned that increasing density by-right will not allow sufficient oversight of infrastructure to ensure that capacities can meet increased residential populations. In local land use planning and zoning, many factors must be considered. The City must maintain its local land use authority to ensure that all developments meet all safety standards and that related traffic changes do not have undue influence on egress paths in the event of an evacuation, particularly within the VHFHSZ and the Portuguese Bend Landslide complex, and with considerations for limitations on existing infrastructure. B-6 2022 Legislative Platform Page A-4 In general, the City has supported housing legislation which seeks to increase local oversight and flexibility, such as Assemblymember Muratsuchi’s Assembly Constitutional Amendment No. 7 which would amend the State Constitution to require certain local la nd use controls and zoning regulations remain within incorporated communities when in conflict with general laws. The City has opposed legislation that erodes local land use authority, such as Senator Atkins’ SB 9, which would require ministerial approval of lot splits and duplexes in single- family residential zoned areas. The City is deeply concerned that bills such as SB 9, which would potentially quadruple density in single-family zoning by-right would have detrimental effects on the City’s infrastructure capacity, particularly in the event of an emergency. Increasing density without the ability for the City to properly plan for it will negatively impact public safety in a community like Rancho Palos Verdes, and its residents’ quality of life. One-size-fits all laws inherently fail to consider the needs of individual communities and their general plans. Furthermore, the current practice of mandating streamlined local processes does nothing to address encouraging actual affordable development of those properties. The Legislature should consider bills that incentivize affordable developments and provide local agencies the ability to zone for such developments. The tone of recent bills, such as making it easier to build an accessory dwelling unit (ADU) on a property, does not guarantee that it will be sold below market rate , thereby affordable. In fact, it appears ADU’s are being rented above market rates throughout Los Angeles or being used for other uses than housing (i.e. gyms, studios, pool cabanas, etc. because of State- mandated relaxed zoning laws). Upzoning parcels is likely to increase the value of the underlying land, which then makes new construction unnecessarily more expensive and over time, raises the values and rents throughout the neighborhoods, making affordable housing even less likely to be built. The current legislative preference for by-right approvals in favor of increasing density, fails to consider the nuances in individual communities, potentially risking public safety, and does nothing to inherently promote affordable housing, which is vital to recover from the housing crisis and is the purported aim of this approach. POTENTIAL LEGISLATIVE SOLUTIONS The City is supportive of legislation which seeks to preserve local land use authority and flexibility, giving choices and incentives to cities. Ultimately, the City would support legislation which would allow local governments to adopt proposed legislation if the requirements are suitable in their individual jurisdictions. Local planning departments have the knowledge and skills to prepare creative solutions to the housing crisis that best serve their communities. By-right zoning legislation undermines their ability to exercise the city’s local land use authority and problem-solve based on their city’s unique geographic, geologic, and infrastructure constraints, but with state support, they have the capacity to help alleviate the housing crisis. B-7 2022 Legislative Platform Page A-5 The City would additionally continue to support legislation that provides financial assistance to implement new directives, or programs similar to Local Early Action Planning (LEAP) and Regional Early Action Planning (REAP) that provide funding to help cities accelerate housing production. The City would also support legislation that provides incentives to cities, such as additional tax revenue or tax breaks. Unfunded mandates are a financial burden to cities which make them difficult to implement successfully. The Legislature may also consider adopting policies which grant concessions to cities based on adoption of pro-housing policies. For example, if a city were to utilize their local land use authority to upzone a certain amount of land in a commercial corridor, they could be exempt from policies such as requiring ministerial app roval of ADUs. This will further local land use flexibility and grants additional incentives to local governments to adopt pro-housing policies. The City is supportive of legislation that increases land use flexibility such as regional trust and/or trade policies, similar to Senator Allen’s SB 809. The City would also support legislation aimed at developers to encourage sustainable, cost-effective development of affordable housing in safe locations across the state . Legislation which seeks to expand existing programs such as Project Homekey, or similar programs that repurpose existing buildings or underutilized commercial property (i.e. surface parking lots or single-story shopping centers) into affordable housing are also viable solutions. Additionally, the Legislature should consider policies and programs which provide social services and mental health resources to help unhoused persons be eligible for, acquire, and maintain affordable housing. Cities have the tools, knowledge, and policies in place to continue to plan and develop innovative solutions to mitigate the housing crisis: solutions that best serve the city and the residents. If, for example, a city observes that there seems to be a surplus of parking spaces in shopping centers, they could re-zone the land to be mixed-use residential. The city may also determine that they could lower their parking requirements in certain areas due to traffic patterns and/or location of transit. When cities are allowed to keep their local land use authority, they will continue to plan and develop new solutions that address their specific constraints, and the state could reward cities for taking such actions with additional tax revenue or tax breaks or policy concessions. Regional housing needs and legislation increasing density must be balanced by local capacity assessments including traffic conditions, sewer conditions, school district capacity, ingress/egress capacity, and water supply, among others. Legislation should re- focus efforts toward developing programs for cities and state collaboration on housing production, alongside sustainable transportation, broadband deployment, and other key infrastructure areas that can support our communities. CONCLUSION During recent legislative sessions, the City has opposed planning and zoning legislation that usurps local control and imposes unfunded mandates. The City was founded to protect local authority and to preserve the character of Rancho Palos Verdes. Local B-8 2022 Legislative Platform Page A-6 oversight of planning and zoning is essential to ensure that every development is suitable and safe for the community, to protect the health and safety of all residents. The City is supportive of policies which strengthen local democracy, authority, and control. The City would additionally consider supporting policies which include funded mandates, legislation aimed at developers to encourage creation of affordable housing, the expansion of programs such as Project Homekey, and the creation of programs to improve social and mental health services for unhoused persons. The City of Rancho Palos Verdes looks forward to working with the Legislature to have an open dialogue about viable solutions to the state’s housing crisis, while maintaining all residents’ high quality of life. B-9