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CC SR 20220315 I - Housing Element Annual Progress Report CITY COUNCIL MEETING DATE: 03/15/2022 AGENDA REPORT AGENDA HEADING: Consent Calendar AGENDA TITLE: Consideration and possible action to forward the 2021 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 2021 calendar year to the Governor’s Office of Planning and Research (OPR) and the California Department of Housing and Community Development (HCD). FISCAL IMPACT: Filing the City’s Annual Housing Element Progress Report will not have a fiscal impact. However, costs associated with the implementation of certain projects supported by the Housing Element are addressed on a project basis when considered by the City Council, such as grant funds awarded to the City to create a mixed- use overlay zone. Amount Budgeted: N/A Additional Appropriation: N/A Account Number(s): N/A ORIGINATED BY: Steven Giang, Associate Planner Octavio Silva, Deputy Director of Community Development REVIEWED BY: Ken Rukavina, Director of Community Development APPROVED BY: Ara Mihranian, AICP, City Manager ATTACHED SUPPORTING DOCUMENTS: A. 2021 Annual Progress Report on the implementation of the Rancho Palos Verdes Housing Element (page A-1) B. HCD’S comments on the City’s Draft Housing Element Update (page B-1) C. New State Housing Bills Summary (page C-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 1 CfTYOF RANCHO PALOS VERDES 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. Pursuant to Government Code §65400, a local jurisdiction is required to prepare and submit an annual progress report on the jurisdiction’s status and progress in implementing its Housing Element by April 1 of each year. In 1995, the Legislature required HCD to adopt forms and definitions for local governments to use for the preparation of their annual progress reports. Over the years, the forms and tables were expanded by HCD and updated to include, but are not limited to, project streamlining, identification of sites to accommodate housing shortfalls, and the status of expending Local Early Action Planning (LEAP) grant funds for applicable jurisdictions. DISCUSSION: The 2021 Annual Progress Report on the City’s 5th cycle Housing Element provides HCD with the required information based on the following tables (see Attachment A): • Table A - Housing development applications submitted • Table A2 – Annual building permit activity summary • Table B - Regional housing needs allocation progress and permits issued by affordability • 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 2021 calendar year • Table G - Locally owned lands in the housing element sites inventory • Table H - Locally owned surplus sites • LEAP Reporting The attached Housing Element 2021 Annual Progress Report only includes information for Tables A through B, D, and LEAP Reporting as the City has no reportable information for Tables C, and 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 by the City. Due to the extensive amount of information on the tables and to ensur e that the information being presented remains legible, the Housing Element 2021 Annual Progress Report is available for review here (Attachment A). Staff believes the Goals and Policies of the City’s Housing Element for this reporting period have continued 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. 2 --- Upon acceptance by the City Council, the Housing Element 2021 Annual Progress Report will be delivered to OPR and HCD by the April 1, 2022, submittal deadline. The submittal of a timely and up-to-date Annual Progress Report to the state ensures compliance with state law and continues to provide funding and grant opportunities to the City. Planning Commission Review On February 22, 2022, the Planning Commission reviewed the City’s Housing Element Annual Progress Report on the status of the Housing Element and the progress on its implementation during the 2021 calendar year. The Planning Commission did not identify additional information to be included and recommended and that Staff forward the report to the City Council for its consideration. ADDITIONAL INFORMATION: 6th Cycle Regional Housing Needs Assessment (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 the California state housing law. As part of the RHNA, every jurisdiction must plan for its RHNA allocation in the Housing Element of its General Plan. The RHNA quantifies the need for h ousing within each jurisdiction in the state during specified planning periods. For instance, information presented in Table B of the attached 2021 Annual Progress Report discussed above provides an update on the 5th cycle RHNA, which covers the planning period from October 2013 to October 2021. Specifically, the City has provided for 138 housing units, which is greater than the 31 required for the 5th RHNA cycle, but fell short by eight units in the very-low or low income categories. Based on the regional housing need determination provided by HCD, the Southern California Association of Governments (SCAG) developed and distributed the 6th cycle RHNA allocation plan for 1,341,827 housing units among four income categor ies (very low, low, moderate, and above-moderate income levels) across each jurisdiction within the SCAG region to cover the planning period from October 2021 through October 2029. The resulting 6th cycle RHNA allocation for the City of Rancho Palos Verdes requires providing 647 units across the following income categories, which include eight very-low or low income units that are carried over from the 5th cycle RHNA. The 6th cycle RHNA figures are identified below: • 257 very-low income units • 143 low-income units • 125 moderate income units • 122 above-moderate income units More information on the RHNA process and allocation can be found by visiting the SCAG website. 3 2021-2029 Housing Element Update To accommodate the 6th cycle RHNA allocation, the Community Development Department is in the process of updating the City’s Housing Element of the General Plan that will cover the planning period from October 2021 to October 2029. On August 24, 2021, the City Council and Planning Commission held a joint study session, which was the first of three public meetings related to the Housing Element update. The topics of discussion included, but were not limited to, the state housing laws and associated requirements; regulations and strategies to accommodate the RHNA; and authorizing the issuance of a Housing Element Community Survey. The Planning Commission and City Council reviewed drafts of the Housing Element update at their respective meetings on October 12, 2021 and October 19, 2021. On November 19, 2021, Staff submitted the draft Housing Element update to HCD for its review and received comments from HCD on January 18, 2022 (Attachment B). At this time, Staff is addressing HCD’s comments and preparing a final draft of the Housing Element. One of the primary concerns raised by HCD is the Site Inventory Analysis included in the draft document, which lists potential vacant and non-vacant parcels within the City identified to be rezoned to accommodate the City’s RHNA. The City is largely built-out and contains a vast amount of protected open space with unique togographic conditions that make such undeveloped areas not only unavailable but unsuitable for development. As a result, this leaves only a limited amount of small undeveloped parcels available for development; therefore, existing commercial properties, most of which are already developed, have been identified in the Site Inventory Analysis. HCD is requesting staff to provide additional information to study the realistic capacity to redevelop the developed commercial sites into housing; including property turnover on a site-by-site basis, development trends and performance factors. As the City acknowledges these limitations as well, staff is drafting a letter inviting HCD representatives to visit the City and assess firsthand the constraints and limitations that the City is facing to accommodate its RHNA. Additional updates on HCD’s response will be provided through the City Manager’s Weekly Administrative Report once more information becomes available. On January 13, 2022, the Community Development Department issued a Notice of Intent to adopt a Negative Declaration for the proposed Housing Element update pursuant to the California Environmental Quality Act (CEQA). Based on the Initial Study (IS) that evaluated the potential environmental impacts of the proposed Housing Element update, a Negative Declaration was prepared instead of an Environmental Impact Report, as the Housing Element update is a policy document that does not include physical development at this time with no significant environmental impacts. The 30 -day CEQA public commenting period ended on February 15, 2022, which will be included as part of the City’s final Housing Element update document. Staff anticipates presenting the final draft of the Housing Element update and associated CEQA review to the Planning Commission and City Council later this spring. In the interim, Staff is also planning to host a virtual town hall meeting to garner additional public participation in the process. More information on the draft Housing Element update and the virtual town hall meeting in the near future 4 will be posted on the City’s website at rpvca.gov/housingelement as soon as it becomes available. As part of the City’s effort to prepare for the 6th cycle RHNA and the implementation of the updated Housing Element, the City is utilizing $310,000 in grant funds administered by HCD via Senate Bill No. 2 (SB 2) and the LEAP Grant Program to establish a mixed- use overlay zoning district in the commercial zones within the City. Currently, potential sites are being screened to determine appropriate locations for mixed -use development, with the first round of public outreach tentatively scheduled to begin soon after the Housing Element update is adopted by the City Council. New State Housing Bills In 2021, Governor Newsom signed into law 24 state housing bills applicable to public agencies in which some became effective immediately while the remaining laws took effect on January 1, 2022. One of the major housing bills to note is Senate Bill No. 9 (SB 9). As a result of SB 9, the City Council adopted Urgency Ordinance No. 656U to codify regulations pertaining to urban lot splits and two -unit developments on single-family residential lots on December 21, 2021. Further revisions to the code lanauge related to SB 9 will undergo the standard code amendment process of first obtaining Planning Commission input and then forwarding their recommendation to the City Council. The staff report and Urgency Ordinance No. 656U related to SB 9 can be reviewed on the City website. A summary with additional information on each new housing bill and respective impacts to the City has also been attached to this report and available to review here (Attachment C). It should also be noted that the City Manager’s Office has provided status updates on the 2021 Legislative Sessions on two occasions last year that included numerous housing bills on which the City Council took position. The staff report related to the 2021 Legislative Session can be reviewed on the City website. Housing Outlook With the numerous state housing bills passed in recent years and the significant increase in the City’s RHNA allocation for the 6th cycle planning period, the City is working to overcome the challenges faced by identifying various strategies. It should be noted that while cities do not control local market realities or the availability of funding to support the development of housing for various incomes levels, cities are required to ensure that enough land is zoned for, and barriers are removed, within their respective jurisdictions to accommodate such housing. To that end, the Community Development Department is specifically considering strategies that include, but are not limited to, the establishment of mixed-use overlay zoning districts, implementation of SB 9 , via the Council-adopted Urgency Ordinance, to regulate lot splits or two-unit developments and continued tracking and processing of accessory dwelling units that conform to the City’s unique circumstances while being compliant with state requirements. As Staff prepares a final draft of the Housing Element update in the coming weeks, Staff will continue to work closely with elected and appointed officials, as well as the public, to 5 prepare programs, related housing regulations, and code amendments that meet state housing law and are true to the Goals and Policies of the City’s General Plan. CONCLUSION: Staff therefore recommends the City Council authorize forwarding the City’s Annual Progress Report the appropriate state agencies. ALTERNATIVES: In addition to Staff’s recommendation, the following alternative is available for the City Council’s consideration: 1) Identify additional information to be included in the Housing Element 2021 Annual Progress Report, prior to forwarding the report to the required state agencies. 6 JurisdictionRancho Palos VerdesANNUAL ELEMENT PROGRESS REPORTNote: "+" indicates an optional fieldReporting Year2021 (Jan. 1 - Dec. 31)Housing Element ImplementationPlanning Period5th Cycle10/15/2013 - 10/15/2021Date Application SubmittedTotal Approved Units by ProjectTotal Disapproved Units by ProjectStreamliningApplication StatusNotes2346 7 8 9 11 12Prior 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) Was a Density Bonus requested for this housing development?Was a Density Bonus approved for this housing development?Please indicate the status of the application.Notes+Summary Row: Start Data Entry Below00000177 24 0 07557022002 2018 Noble View DrPLAU2021-0012 ADUO4/16/202111NoNoNo Approved7557002003 1915 Homeworth DrPLAU2021-0013 ADUO8/23/202111NoNoNo Approved757401902228819 Crestridge RdPLAU2021-0003 ADU O2/8/202111NoNoNo Approved7574017010 5640 Scotwood Dr PLAU2021-0004 ADU O3/27/202111NoNoNo Approved758801601030175 Avenida EsplendidaPLAU2021-0005 ADU O3/12/202111NoNoNo Approved7582022099 74 Via Del CieloPLAU2021-0007 ADUO5/18/202111NoNoNoApproved7582022099 74 Via Del CieloPLSR2021-0047 SFDO2/18/202111NoNoNoApproved7581012002 31217 Marne DrPLAU2021-0008 ADUO6/7/202111NoNoNoApproved7577020024 5421 Eau Claire DrPLAU2021-0009 ADUO6/10/202111NoNoNo Approved75880060047242 Avenida AltisimaPLAU2021-0010 ADU O6/16/202111NoNoNo Approved756103500930523 Santa Luna DrPLAU2021-0011 ADUO7/28/202111NoNoNo Approved756602302829087 Palos Verdes Dr EZON2016-00497 SFD O10/6/202111NoNoNo Approved7578021004 6055 Via SonomaPLSR2019-0364 SFDO4/15/202111NoNoNoApproved756402800231917 Emerald View DrPLSR2020-0238 SFDO6/8/202111NoNoNo Approved7586008011 27514 Fawnskin DrPLSR2021-0017 ADUO1/19/202111NoNoNo Approved7582017005 30138 Via VictoriaPLSR2021-0093 ADUO3/19/202111NoNoNoApproved755701200629205 S Trotwood AvePLSR2021-0203 ADU O5/28/202111NoNoNo Approved7582011028 30504 Palos Verdes Dr WPLGR2019-0025 SFD O 1/8/202111NoNoNo Approved7554017019 28160 Palos Verdes Dr EPLVA2018-0001 SFD O 2/18/202111NoNoNo Disapproved7588006018 7255 Crest RdPLHV2020-0004SFDO 6/21/202111NoNoNoApproved7588006018 7255 Crest RdPLAU2020-0003 ADU O 2/5/202111NoNoNoDisapproved7588003002 29907 Avenida EsplendidaPLAU2021-0006 ADU O 10/13/202111NoNoNo Approved756602202728979 Palos Verdes Dr EPLSR2021-0024 ADU O 1/26/202111NoNoNo Approved757402101728812 Crestridge RdPLAU2021-0001ADUO1/8/202111NoNoNo ApprovedTable AHousing Development Applications SubmittedCells in grey contain auto-calculation formulas51Project IdentifierUnit TypesProposed Units - Affordability by Household Incomes (CCR Title 25 §6202)Density Bonus Applications10A-1- JurisdictionRancho Palos VerdesANNUAL ELEMENT PROGRESS REPORTReporting Year2021 (Jan. 1 - Dec. 31)Housing Element ImplementationCells in grey contain auto-calculation formulasPlanning Period5th Cycle10/15/2013 - 10/15/2021Table 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 19202122232425Prior 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(may select multiple - see instructions)Deed Restriction Type(may select multiple - 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 UnitsDemolished or Destroyed UnitsDemolished/Destroyed Units Owner or RenterTotal Density Bonus Applied to the Project (Percentage Increase in Total Allowable Units or Total Maximum Allowable Residential Gross Floor Area)Number of Other Incentives, Concessions, Waivers, or Other Modifications Given to the Project (Excluding Parking Waivers or Parking Reductions)List the incentives, concessions, waivers, and modifications (Excluding Parking Waivers or Parking Modifications)Did the project receive a reduction or waiver of parking standards? (Y/N)Notes+Row: Start Data Entry Below00000143 170000062 8 00000611 1700207573004018 6341 Tarragon Rd PLSR2020-0072 ADU O01 4/13/2021 10NCity 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 7582022099 74 Via Del Cielo PLAU2021-0007 ADU O1 5/18/2021 11 9/13/2021 10NCity 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 7577020024 5421 Eau Claire Dr PLAU2021-0009 ADU O01 8/10/2021 10NCity 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 7581012002 31217 Marne Dr PLAU2021-0008 ADU O1 8/6/2021 11 9/30/2021 10NCity 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 7586008011 27514 Fawnskin Dr PLSR2021-0017 ADU O1 1/19/2021 11 9/29/2021 10NCity 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 758200804230744 Rue De La PierreRES2020-00041 ADU O001 4/21/2021 1 NCity 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 7577020024 5421 Eau Claire Dr RES2021-00252 ADU O001 11/30/2021 1 NCity 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 7573014109 41 Nantasket BLD2017-00532 SFD O001 8/31/2021 1 N7573014108 31 Nantasket BLD2017-00533 SFD O001 8/31/2021 1 N75770030015350 WHITEFOX DRBLD2017-01052 SFDO0017/13/20211N1DemolishedO756402903832033 Cape Point DrRES2018-00140 SFDO0012/9/20211N7573014106 11 NantasketRES2019-00089 SFDO0015/13/20211N756403001131925 Emerald View DrRES2019-00209 SFDO00112/13/20211N7588019026 6853 Vallon DrRES2019-00218 ADUO0016/8/20211NCity 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 756402901832007 Isthmus View DrRES2019-00342 SFDO0012/24/20211N7566006033 4348 Via FrascatiRES2019-00428 SFDO0012/17/20211N7572010020 48 Cinnamon LnRES2020-00381 ADUO0014/29/20211NCity 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 ADUO0014/20/20211NCity 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 757402101728812 Crestridge RdRES2021-00082 ADUO12/18/2021118/20/202110NCity 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 75570220022018 Noble View DrPLAU2021-0012 ADUO18/31/2021100NCity 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 75570020031915 Homeworth DrPLAU2021-0013 ADUO110/7/2021100NCity 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 757401902228819 Crestridge RdPLAU2021-0003 ADUO12/22/2021100NCity 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 7574017010 5640 Scotwood DrPLAU2021-0004 ADUO14/16/2021100NCity 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 758801601030175 Avenida EsplendidaPLAU2021-0005 ADUO15/13/2021100NCity 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 75880060047242 Avenida AltisimaPLAU2021-0010 ADUO16/30/2021100NCity 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 7578021004 6055 Via SonomaPLSR2019-0364 SFDO16/10/2021100N756402800231917 Emerald View DrPLSR2020-0238 SFDO16/25/2021100N7582017005 30138 Via VictoriaPLSR2021-0093 ADUO15/13/2021100NCity 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 756602202728979 Palos Verdes DrPLSR2021-0024 ADUO12/17/2021100NCity 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 755701200629205 S Trotwood AvePLSR2021-0203 ADUO16/4/2021100NCity 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 756103500930523 Santa Luna DrPLAU2021-0011 ADUO17/28/2021100NCity 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 7566001029 3015 Crest RdRES2020-00299 SFDO018/27/202110N7556016006 10 Toprail LnRES2021-00115 SFDO019/16/202110N1DemolishedO7588006018 7255 Crest RdPLHV2020-0004 SFDO17/12/2021100N7561017003 22 La Vista VerdeRES2019-00381 ADUO0017/1/20211NCity 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 756600204030399 Palos Verdes Dr ERES2021-00180 SFDO0016/17/20211N756600203930389 Palos Verdes Dr ERES2021-00179 SFDO0016/16/20211N7572010012 51 Narcissa DrRES2020-00478 SFDO0015/18/20211NNote: "+" indicates an optional fieldHousing with Financial Assistance and/or Deed RestrictionsDemolished/Destroyed UnitsProject Identifier(CCR Title 25 §6202)Density Bonus1Unit TypesAffordability by Household Incomes - Completed EntitlementAffordability by Household Incomes - Building PermitsAffordability by Household Incomes - Certificates of Occupancy4710A-2I --I ----- JurisdictionRancho Palos VerdesANNUAL ELEMENT PROGRESS REPORTReporting Year2021 (Jan. 1 - Dec. 31)Housing Element ImplementationPlanning Period5th Cycle10/15/2013 - 10/15/2021(CCR Title 25 §6202)134RHNA Allocation by Income Level201320142015201620172018201920202021Total Units to Date (all years)Total Remaining RHNA by Income LevelDeed Restricted - - - 4 1 - - - - Non-Deed Restricted - - - - - - - - - Deed Restricted - - - - - - - - - Non-Deed Restricted - - - - - - - - - Deed Restricted - - - - - - - - - Non-Deed Restricted - - - - - 1 1 5 6 Above Moderate 13 - 4 4 48 26 21 9 6 2 120 - 31 - 4 4 52 27 22 10 11 8 138 8 Note: units serving extremely low-income households are included in the very low-income permitted units totals and must be reported as very low-income units. 5 Please note: For the last year of the 5th cycle, Table B will only include units that were permitted during the portion of the year that was in the 5th cycle. For the first year of the 6th cycle, Table B will include units that were permitted since the start of the planning period.Total RHNATotal UnitsIncome LevelVery LowLowPlease note: The APR form can only display data for one planning period. To view progress for a different planning period, you may login to HCD's online APR system, or contact HCD staff at apr@hcd.ca.gov. - 5 This table is auto-populated once you enter your jurisdiction name and current year data. Past year information comes from previous APRs. 13 Moderate 8 5 5 Please contact HCD if your data is different than the material supplied here - 2Table BRegional Housing Needs Allocation ProgressPermitted Units Issued by Affordability 3 A-3I • Jurisdiction Rancho Palos Verdes Reporting Year 2021 (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. • City staff continued to coordinate meetings with property owners and interested developers for properties along 29105 S. Western Ave through 29229 S. Western Avenue regarding potential mixed-use developments. • In 2021, City staff worked with real estate development consultant Piasky Solutions to analyze redevelopment opportunities in commercial zones to potentially accomodate mixed-use development and retained the services of Dudek to prepare code amendment proceedings and update the Western Avenue Specific Plan and General Plan to create a mixed-use overlay zoning district. 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 2021, the Planning Division granted entitlements to develop 14 second dwelling units of which 6 have 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: Los Angeles County Homeownership Program, Morgage Credit Certificate Program, So Cal Home Financing Authority First Home Mortgage Program, Fair Housing Services and Program, and Services for Persons with Developmental Disabilities. Outreach Program for Persons with Disabilities (Program No. 7) Coordinate with Harbor Regional Center July_2015 • The 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. 2 and Local Early Action Planning grants awarded in April, 2020 and May 2021, respectively. 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 31 code enforcement cases per month in 2021. • 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 Los Angeles 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 • The City continues 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-4 I Jurisdiction Rancho Palos Verdes Reporting Year 2021 (Jan. 1 - Dec. 31) Total Award Amount Total award amount is auto‐populated based on amounts entered in rows 15‐26. Task $ Amount Awarded $ Cumulative Reimbursement Requested Other Funding Notes Draft CEQA Documentation $50,000.00 $0.00 None Not yet in progress Planning Commission Approval $40,000.00 $0.00 None Not yet in progress Final CEQA Documentation $40,000.00 $0.00 None Not yet in progress City Council Adoption $20,000.00 $0.00 None Not yet in progress Summary of entitlements, building permits, and certificates of occupancy (auto‐populated from Table A2) Current Year Deed Restricted 0 Non-Deed Restricted 0 Deed Restricted 0 Non-Deed Restricted 0 Deed Restricted 0 Non-Deed Restricted 14 3 17 Current Year Deed Restricted 0 Non-Deed Restricted 0 Deed Restricted 0 Non-Deed Restricted 0 Deed Restricted 0 Non-Deed Restricted 6 2 8 Current Year Deed Restricted 0 Non-Deed Restricted 0 Deed Restricted 0 Non-Deed Restricted 0 Deed Restricted 0 Non-Deed Restricted 6 11 17 Moderate Above Moderate Total Units Completed Entitlement Issued by Affordability Summary Income Level Very Low Low Moderate Above Moderate Total Units Building Permits Issued by Affordability Summary Income Level Very Low Low Total Units Certificate of Occupancy Issued by Affordability Summary Income Level Very Low Low Moderate Above Moderate Other (Please Specify in Notes) ANNUAL ELEMENT PROGRESS REPORT Local Early Action Planning (LEAP) Reporting (CCR Title 25 §6202) Other (Please Specify in Notes) Please update the status of the proposed uses listed in the entity’s application for funding and the corresponding impact on housing within the region or jurisdiction, as applicable, categorized based on the eligible uses specified in  Section 50515.02 or 50515.03, as applicable. 150,000.00$                                                                                                                        Task Status Other (Please Specify in Notes) Other (Please Specify in Notes) A-5 I Jurisdiction Rancho Palos Verdes Reporting Year 2021 (Jan. 1 - Oct. 15) Planning Period 5th Cycle 10/15/2013 - 10/15/2021 Current Year Deed Restricted 0 Non-Deed Restricted 0 Deed Restricted 0 Non-Deed Restricted 0 Deed Restricted 0 Non-Deed Restricted 6 2 8 Units by Structure Type Entitled Permitted Completed SFA 0 0 0 SFD 3 2 11 2 to 4 0 0 0 5+0 0 0 ADU 14 6 6 MH 0 0 0 Total 17 8 17 24 24 0 0 0 0 0 0 Income Rental Ownership Total Very Low 000 Low 000 Moderate 000 Above Moderate 000 Total 000 Cells in grey contain auto-calculation formulas Total Units Constructed with Streamlining Total Housing Applications Submitted: Number of Proposed Units in All Applications Received: Total Housing Units Approved: Total Housing Units Disapproved: Total Units Housing Applications Summary Use of SB 35 Streamlining Provisions Note: Units serving extremely low-income households are included in the very low-income permitted units totals Number of Applications for Streamlining Building Permits Issued by Affordability Summary Income Level Very Low Low Moderate Above Moderate Units Constructed - SB 35 Streamlining Permits Number of Streamlining Applications Approved Total Developments Approved with Streamlining A-6 STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT DIVISION OF HOUSING POLICY DEVELOPMENT 2020 W. El Camino Avenue, Suite 500 Sacramento, CA 95833 (916) 263-2911 / FAX (916) 263-7453www.hcd.ca.govJanuary 18, 2022 Ken Rukavina, Director Community Development Department City of Rancho Palos Verdes 30940 Hawthorne Boulevard Rancho Palos Verdes, CA 9027518 Dear Ken Rukavina: RE: City of Rancho Palos Verdes’ 6th Cycle (2021-2029) Draft Housing Element Update Thank you for submitting the City of Rancho Palos Verdes’ draft housing element received for review on November 19, 2021. Pursuant to Government Code section 65585, subdivision (b), the California Department of Housing and Community Development (HCD) is reporting the results of its review. Our review was facilitated by a conversation on January 12, 2022 with you, Octavio Silva, Deputy Director, and Matt Kowta, the City’s consultant. In addition, HCD considered comments from Erik Felix, Mark Coleman, and Maura Mizuguchi pursuant to Government Code section 65585, subdivision (c). The draft element addresses many statutory requirements; however, revisions will be necessary to comply with State Housing Element Law (Article 10.6 of the Gov. Code). The enclosed Appendix describes the revisions needed to comply with State Housing Element Law. As a reminder, the City’s 6th cycle housing element was due October 15, 2021. As of today, the City has not completed the housing element process for the 6th cycle. The City’s 5th cycle housing element no longer satisfies statutory requirements. HCD encourages the City to revise the element as described above, adopt, and submit to HCD to regain housing element compliance. For your information, pursuant to Assembly Bill 1398 (Chapter 358, Statutes of 2021), if a local government fails to adopt a compliant housing element within 120 days of the statutory deadline (October 15, 2021), then any rezoning to accommodate the regional housing needs allocation (RHNA), including for lower-income households, shall be completed no later than one year from the statutory deadline. Otherwise, the local government’s housing element will no longer comply with State Housing Element Law, B-1e Ken Rukavina, Director Page 2 and HCD may revoke its finding of substantial compliance pursuant to Government Code section 65585, subdivision (i). Public participation in the development, adoption and implementation of the housing element is essential to effective housing planning. Throughout the housing element process, the City should continue to engage the community, including organizations that represent lower-income and special needs households, by making information regularly available and considering and incorporating comments where appropriate. Several federal, state, and regional funding programs consider housing element compliance as an eligibility or ranking criteria. For example, the CalTrans Senate Bill (SB) 1 Sustainable Communities grant; the Strategic Growth Council and HCD’s Affordable Housing and Sustainable Communities programs; and HCD’s Permanent Local Housing Allocation consider housing element compliance and/or annual reporting requirements pursuant to Government Code section 65400. With a compliant housing element, the City will meet housing element requirements for these and other funding sources. For your information, some general plan element updates are triggered by housing element adoption. HCD reminds the City to consider timing provisions and welcomes the opportunity to provide assistance. For information, please see the Technical Advisories issued by the Governor’s Office of Planning and Research at http://opr.ca.gov/docs/OPR_Appendix_C_final.pdf and http://opr.ca.gov/docs/Final_6.26.15.pdf. HCD appreciates the hard work and dedication the City’s housing element team provided during the review. We are committed to assist the City in addressing all statutory requirements of State Housing Element Law. If you have any questions or need additional technical assistance, please contact Gianna Marasovich, of our staff, at Gianna.Marasovich@hcd.ca.gov. Sincerely, Paul McDougall Senior Program Manager Enclosure B-2 City of Rancho Palos Verdes’ 6th Cycle Draft Housing Element Update Page 1 January 18, 2022 APPENDIX CITY OF RANCHO PALOS VERDES The following changes are necessary to bring the City’s housing element into compliance with Article 10.6 of the Government Code. Accompanying each recommended change, we cite the supporting section of the Government Code. Housing element technical assistance information is available on HCD’s website at http://www.hcd.ca.gov/community-development/housing-element/housing-element-memos.shtml. Among other resources, the housing element section contains HCD’s latest technical assistance tool, Building Blocks for Effective Housing Elements (Building Blocks), available at http://www.hcd.ca.gov/community-development/building-blocks/index.shtml and includes the Government Code addressing State Housing Element Law and other resources. A. Review and Revision Review the previous element to evaluate the appropriateness, effectiveness, and progress in implementation, and reflect the results of this review in the revised element. (Gov. Code, § 65588 (a) and (b).) As part of the review of programs in the past cycle, the element must also provide an evaluation of the effectiveness of goals, policies, and related actions in meeting the housing needs of special needs populations (e.g., elderly, persons with disabilities, large households, female headed households, farmworkers, and persons experiencing homelessness). Programs should be revised as appropriate to reflect the results of this evaluation. B. Housing Needs, Resources, and Constraints 1. Affirmatively further[ing] fair housing in accordance with Chapter 15 (commencing with Section 8899.50) of Division 1 of Title 2…shall include an assessment of fair housing in the jurisdiction. (Gov. Code, § 65583, subd. (c)(10)(A).) Outreach: Outreach specifically related to affirmatively furthering fair housing (AFFH) is foundational to a complete analysis and formulating appropriate goals and actions to overcome patterns of segregation and foster more inclusive communities. The City should summarize and relate its and other’s outreach efforts to all components of the AFFH analysis and modify or add goals and actions as appropriate. For example, the element could incorporate regional outreach from an analysis of impediments to fair housing choice (AI) or outreach from other planning documents to better formulate appropriate programmatic response. Assessment of Fair Housing: The element reports and maps data on the components of the assessment of fair housing (e.g., segregation and integration, disparities in access to opportunity) but it must also analyze the information such as trends, coincidence with B-3 City of Rancho Palos Verdes’ 6th Cycle Draft Housing Element Update Page 2 January 18, 2022 other components of the assessment of fair housing and the effectiveness of past and current strategies to promote inclusive communities and equitable quality of life throughout the region. This analysis should be complemented by local data and knowledge, including input from commenters, and other relevant factors as described below. This analysis should particularly focus on the significant regional differences (e.g., income, race, tenure, housing type) between Rancho Palos Verdes and the broader Los Angeles region to identify appropriate programmatic response. Disproportionate Housing Needs, including Displacement: The element mentions displacement, including a brief remark on sea level rise but it should include analysis to better formulate appropriate response .For example, the City could consider data from the Urban Displacement Project at https://www.urbandisplacement.org/maps/los-angeles- gentrification-and-displacement/. The element could also spatially examine data from the noted climate change vulnerability assessment and overlap that data with the AFFH analysis, including identified sites to accommodate the regional housing needs allocation (RHNA) by income group. Sites Inventory: While the element includes some general discussion of sites and location by income group, a full analysis should address location, the number of sites and units by all income groups and how that affects the existing patterns for all components of the assessment of fair housing (e.g., segregation and integration, access to opportunity) and any isolation of the RHNA by income group. The element should also discuss whether the distribution of sites improves or exacerbates conditions. Local Data and Knowledge, and Other Relevant Factors: The element must include local data, knowledge, and other relevant factors to discuss and analyze any unique attributes about the City related to fair housing issues. The element should complement federal, state, and regional data with local data and knowledge where appropriate to capture emerging trends and issues, including utilizing knowledge from local and regional advocates and service providers. Also, the element includes some general information on lending, lack of conditions, covenants and restrictions and past atrocities related to Japanese farmers, but it must also include other relevant factors that contribute to fair housing issues in the jurisdiction. For instance, the element should analyze historical land use, zoning (e.g., lack of multifamily zoning), governmental and nongovernmental spending including transportation investments, demographic trends, historical patterns of segregation, or other information that may have impeded housing choices and mobility. Contributing Factors to Fair Housing Issues: The element should re-assess and prioritize contributing factors upon completion of analysis and make revisions as appropriate. For example, the element lists several contributing factors and concludes, the City’s priority is outreach and education. However, the City could consider other contributing factors such as land use and lack of public investment in affordable housing choices to guide the formulation of more appropriate and meaningful goals and actions. Goals, Actions, Metrics, and Milestones: The element must be revised to add or modify goals and actions based on the outcomes of a complete analysis. Goals and actions must specifically respond to the analysis and to the identified and prioritized contributing factors B-4 City of Rancho Palos Verdes’ 6th Cycle Draft Housing Element Update Page 3 January 18, 2022 to fair housing issues and must be significant and meaningful enough to overcome identified patterns and trends. Actions must have specific commitment, metrics and milestones as appropriate and must address, as appropriate based on the outcomes of the analysis, housing mobility enhancement, new housing choices and affordability in high opportunity areas, place-based strategies for community revitalization and displacement protection. For further guidance, please visit HCD’s AFFH in California webpage at https://www.hcd.ca.gov/community-development/affh/index.shtml. 2. Include an analysis of population and employment trends and documentation of projections and a quantification of the locality's existing and projected needs for all income levels, including extremely low-income households. (Gov. Code, § 65583, subd. (a)(1).) Extremely Low-income (ELI) Households: The element (p. 158) notes how the City may calculate the projected need for ELI households, but it should include the actual identification of projected ELI households. In addition, the element reports some data on ELI households (pp. 50-52) but should analyze that data. This is particularly important given the unique and disproportionate needs of ELI households. For example, the element should analyze tenure, cost burden and other household characteristics then examine trends and the availability of resources to determine the magnitude of gaps in housing needs. In turn, this analysis should guide the formulation of responsive policies and programs. 3. An inventory of land suitable and available for residential development, including vacant sites and sites having realistic and demonstrated potential for redevelopment during the planning period to meet the locality’s housing need for a designated income level, and an analysis of the relationship of zoning and public facilities and services to these sites. (Gov. Code, § 65583, subd. (a)(3).) Parcel Listing: In addition to the other factors listed for identified sites (e.g., zoning, general plan), the element must sufficiently describe existing uses of nonvacant sites to facilitate an analysis of the potential for redevelopment in the planning period. Small Sites: The element identifies several sites at less than a half-acre in Table 33. Sites smaller than half an acre are deemed inadequate to accommodate housing for lower- income households unless it is demonstrated, with sufficient evidence, that sites of equivalent size with affordability were successfully developed during the prior planning period or other evidence demonstrates the suitability of these sites. For example, the element lists some sites with common ownership, but it could also describe interest from the owners or developers in consolidation. Other smaller sites show a potential less than 16 units and the element should discuss the feasibility of these smaller sites to encourage housing for lower-income households. Based on a complete analysis, the City should consider adding or revising programs to include incentives for facilitating development on small sites. Large Sites: The element identifies two sites greater than ten acres. For example, Site 47 is 11.15 acres and Site 41 is 39.75 acres. Sites greater than ten acres are not eligible absent a demonstration that sites of equivalent size and affordability were successfully B-5 City of Rancho Palos Verdes’ 6th Cycle Draft Housing Element Update Page 4 January 18, 2022 developed during the prior planning period or other evidence is provided to demonstrate the suitability of these sites. If utilizing these sites toward the housing need for lower- income households, the element must include analysis and programs as appropriate. For example, the element could discuss and reflect in the inventory and programs a mixed- income approach to larger sites that utilizes the City’s inclusionary requirements. Sites to Accommodate Moderate Income RHNA: The element did not allocate any units for moderate income and assumes excess sites for lower will accommodate for moderate income. The sites inventory should be revised to reflect the assumed sites for moderate income. Realistic Capacity: While the element provides assumptions of buildout for sites included in the inventory, it must also provide support for these assumptions. For example, the element should demonstrate what specific trends, factors, and other evidence led to the assumptions. The estimate of the number of units for each site must be adjusted as necessary, based on the land use controls and site improvements, typical densities of existing or approved residential developments at a similar affordability level. In addition, the element assumes most of the residential development on sites proposed with a mixed-use overlay zone. However, the element must still account for the likelihood of nonresidential uses in this proposed zone, including an analysis based on indicators such as development trends, performance standards or other relevant factors. For example, the element could commit to residential performance standards in the mixed-use overlay. Depending on the results of a complete analysis, the element may need to adjust residential capacity calculations, policies, and programs accordingly. Nonvacant Sites: While the element identifies nonvacant sites to accommodate the regional housing need for lower-income households, it must include a methodology that demonstrates the potential for additional development in the planning period. The methodology must consider factors including the extent to which existing uses may constitute an impediment to additional residential development, the City’s past experience with converting existing uses to higher density residential development, the current market demand for the existing use, an analysis of any existing leases or other contracts that would perpetuate the existing use or prevent redevelopment of the site for additional residential development, development trends, market conditions, and regulatory or other incentives or standards to encourage additional residential development on these sites. For example, the City does not have recent experience developing sites with existing uses to higher density residential development. As a result, the element should focus on the extent existing uses impede additional development. For example, while the element generally mentions some characteristics of redevelopment potential, it could detail indicators of property turnover on a site basis in Appendix C (Piasky Study). The element should also discuss the extent the City’s regulatory framework encourages redevelopment to residential uses and adjust programs as appropriate. For example, Appendix C notes the need for an appropriate regulatory framework (e.g., heights, densities, parking, off-site improvements) but should reflect these important actions in the housing program. B-6 City of Rancho Palos Verdes’ 6th Cycle Draft Housing Element Update Page 5 January 18, 2022 In addition, if the housing element relies upon nonvacant sites to accommodate more than 50 percent of the RHNA for lower-income households the housing element must demonstrate existing uses are not an impediment to additional residential development and will likely discontinue in the planning period (Gov. Code, § 65583.2, subd. (g)(2)). Absent findings (e.g., adoption resolution) based on substantial evidence, the existing uses will be presumed to impede additional residential development and will not be utilized toward demonstrating adequate sites to accommodate the RHNA. Finally, if the element identifies sites with existing residential uses. Absent a replacement housing policy, these sites are not adequate sites to accommodate lower-income households. The replacement housing policy has the same requirements as set forth in Government Code section 65915, subdivision (c), paragraph (3). Infrastructure: While the element generally describes water and sewer infrastructure, it must clarify sufficient existing or planned capacity to accommodate the RHNA or include programs if necessary. Environmental Constraints: The element must describe environmental conditions within the City and relate those conditions to identified sites and describe any other known environmental or other constraints that could impact housing development on identified sites in the planning period. Electronic Sites Inventory: For your information, pursuant to Government Code section 65583.3, the City must submit an electronic sites inventory with its adopted housing element. The City must utilize standards, forms, and definitions adopted by HCD. Please see HCD’s housing element webpage at https://www.hcd.ca.gov/community- development/housing-element/index.shtml#element for a copy of the form and instructions. The City can reach out to HCD at sitesinventory@hcd.ca.gov for technical assistance. Zoning for a Variety of Housing Types: • Emergency Shelters: The element indicates emergency shelters are permitted by right in the Commercial General (CG) district that includes over 36 acres with no vacant properties. First, the element should clarify emergency shelters are permitted without discretionary action. Second, the element should discuss any reuse or other opportunities that could accommodate at least one emergency shelter. Third, the element should identify and analyze development standards for any potential constraints on emergency shelters. Lastly, the element must clarify emergency shelters parking requirements have been updated pursuant to AB 139 (Chapter 335, Statutes of 2019) which requires only sufficient parking to accommodate all staff working in the emergency shelter, provided that the standards do not require more parking for emergency shelters than other residential or commercial uses within the same zone. Based on a complete analysis, the element should include programs as appropriate. • Transitional Housing and Supportive Housing: Transitional housing and supportive housing must be permitted as a residential use in all zones allowing residential uses B-7 City of Rancho Palos Verdes’ 6th Cycle Draft Housing Element Update Page 6 January 18, 2022 and only subject to those restrictions that apply to other residential dwellings of the same type in the same zone. The element must describe and analyze the City’s transitional and supportive housing standards and codes and demonstrate compliance with this requirement or add or revise programs as appropriate. • Permanent Supportive Housing: Supportive housing shall be a use by-right in zones where multifamily and mixed uses are permitted, including nonresidential zones permitting multifamily uses pursuant to Government Code section 65651. The element must demonstrate compliance with this requirement and add or modify programs if necessary. • Employee Housing: The element must demonstrate zoning is consistent with the Employee Housing Act (Health and Safety Code, § 17000 et seq.) or add or modify programs. Specifically, section 17021.5 requires employee housing for six or fewer employees to be treated as a single-family structure and permitted in the same manner as other dwellings of the same type in the same zone. 4. An analysis of potential and actual governmental constraints upon the maintenance, improvement, or development of housing for all income levels, including the types of housing identified in paragraph (1) of subdivision (c), and for persons with disabilities as identified in the analysis pursuant to paragraph (7), including land use controls, building codes and their enforcement, site improvements, fees and other exactions required of developers, and local processing and permit procedures... (Gov. Code, § 65583, subd. (a)(5).) Land Use Controls: The element must identify and analyze all relevant land use controls impacts as potential constraints on a variety of housing types. The analysis should address parking, including two garage requirement, and height limits in the multifamily zones and proposed development standards for the mixed-use overlay, particularly in consideration of findings in Appendix C. Based on the outcomes of a complete analysis, the element should include programs to address or remove the identified constraints. Housing for Persons with Disabilities: • Reasonable Accommodation: The element mentions the City has established a reasonable accommodation procedure but should also describe and analyze that procedure, including approval findings. This finding is particularly important given, as noted on page 57, past complaints on denials of reasonable accommodation. • Community Care Facilities: While the element identifies how community care facilities serving six or fewer persons are permitted, it must describe and analyze how community care facilities serving seven or more persons are approved including any approval findings. The element should analyze the process for potential constraints on housing for persons with disabilities and add or modify programs as appropriate to ensure zoning permits group homes for seven or more persons objectively with approval certainty. Processing and Permit Procedures: The element must describe and analyze the City’s permit processing and approval procedures for single family and multifamily developments. The analysis must evaluate the processing and permit procedures’ impacts B-8 City of Rancho Palos Verdes’ 6th Cycle Draft Housing Element Update Page 7 January 18, 2022 as potential constraints on housing supply and affordability. For example, the analysis should consider processing and approval procedures and time for typical single- and multifamily developments, including type of permit, level of review, number of hearings and approval findings. C. Housing Programs 1. Include a program which sets forth a schedule of actions during the planning period, each with a timeline for implementation, which may recognize that certain programs are ongoing, such that there will be beneficial impacts of the programs within the planning period, that the local government is undertaking or intends to undertake to implement the policies and achieve the goals and objectives of the Housing Element through the administration of land use and development controls, the provision of regulatory concessions and incentives, and the utilization of appropriate federal and state financing and subsidy programs when available. The program shall include an identification of the agencies and officials responsible for the implementation of the various actions. (Gov. Code, § 65583, subd. (c).) To have a beneficial impact in the planning period and meet the goals and objectives of the housing element, programs must have specific commitment and definitive timelines toward tangible outcomes. Examples of programs to be revised include: • Program 5 (Section 8 Rental Assistance) should commit to how often the City will reach out to property owners and subsequent actions upon submitting a survey to the housing authority. • Program 7 (First-time Homebuyer Assistance) must commit to include a definitive timeline of how often the connection/outreach will occur. • Program 8 (Outreach for Persons with Disabilities) should commit to how often the City will conduct outreach and subsequent proactive action to support development. • Program 9 (Extremely Low-income Housing) should be revised to include a definitive timeline (e.g., annually) on how often the City will support affordable housing. • Program 11 (Fair Housing Information) should be more specific and describe how and how often the brochures will be distributed. 2. Identify actions that will be taken to make sites available during the planning period with appropriate zoning and development standards and with services and facilities to accommodate that portion of the city’s or county’s share of the regional housing need for each income level that could not be accommodated on sites identified in the inventory completed pursuant to paragraph (3) of subdivision (a) without rezoning, and to comply with the requirements of Government Code section 65584.09. Sites shall be identified as needed to facilitate and encourage the development of a variety of types of housing for all income levels, including multifamily rental housing, factory-built housing, mobilehomes, housing for agricultural employees, supportive housing, single-room occupancy units, emergency shelters, and transitional housing. (Gov. Code, § 65583, subd. (c)(1).) B-9 City of Rancho Palos Verdes’ 6th Cycle Draft Housing Element Update Page 8 January 18, 2022 As noted in Finding B3, the element does not include a complete site analysis, therefore, the adequacy of sites and zoning were not established. Based on the results of a complete sites inventory and analysis, the City may need to add or revise programs to address a shortfall of sites or zoning available to encourage a variety of housing types. In addition, the element should be revised as follows: Shortfall of Sites to Accommodate the RHNA: The element acknowledges that the zoning is not currently in place to accommodate the RHNA and includes Programs 1 (Mixed-use Overlay) and 2 (High Density Residential) which commits to establish the appropriate zoning. However, to the extent necessary to address a shortfall of sites to accommodate the lower-income RHNA, these programs must meet all requirements pursuant to Government Code section 65583.2, subdivisions (h) and (i). For example, sites must permit multifamily uses without discretionary action for developments in which 20 percent or more of the units are affordable to lower-income households. Other examples include accommodating at least 16 units per site, requiring a minimum density of 20 units per acre and establishing residential only performance standards. In addition, the Programs should commit to the shortfall of sites (e.g., number of units by income group), minimum acreage, allowable densities and ensure development standards will encourage achieving maximum allowable densities. Accessory Dwelling Units (ADU): The element includes Program 3 ADUs to amend the ordinance to meet the minimum requirements of ADU law. Upon a cursory review, HCD has identified some potential areas that require amendment and will send information under separate cover. In addition, the element should consider amendments beyond the minimum statutory requirements and specific commitment to establish incentives beyond developing hand out. This could be particularly important from an AFFH perspective and necessary actions to promote housing choices and affordability. Finally, the Program should monitor the production and affordability at least twice in the planning period and commit to subsequent action within a definitive timeline (e.g., six months) if ADU assumptions are not realized. 3. The Housing Element shall contain programs which assist in the development of adequate housing to meet the needs of extremely low-, very low-, low- and moderate-income households. (Gov. Code, § 65583, subd. (c)(2).) The element must include a program(s) with specific actions and timelines to assist in the development of housing for lower-income households and all special needs households including seniors, homeless, farmworkers, female-headed households and persons with disabilities including developmental. The program(s) could commit the City to adopting priority processing, granting fee waivers or deferrals, modifying development standards, granting concessions and incentives for housing developments that include units affordable to extremely low-income households; assisting, supporting or pursuing funding applications; and outreach and coordination with affordable housing developers. This can also be accomplished through modification of an existing program. 4. Address and, where appropriate and legally possible, remove governmental and nongovernmental constraints to the maintenance, improvement, and development of B-10 City of Rancho Palos Verdes’ 6th Cycle Draft Housing Element Update Page 9 January 18, 2022 housing, including housing for all income levels and housing for persons with disabilities. The program shall remove constraints to, and provide reasonable accommodations for housing designed for, intended for occupancy by, or with supportive services for, persons with disabilities. (Gov. Code, § 65583, subd. (c)(3).) As noted in Finding B4, the element requires a complete analysis of potential governmental and nongovernmental constraints. Depending upon the results of that analysis, the City may need to revise or add programs and address and remove or mitigate any identified constraints. 5. The Housing Element shall include programs to conserve and improve the condition of the existing affordable housing stock. (Gov. Code, § 65583, subd. (c)(4).) The element must include a program(s) to conserve and improve the condition of the existing stock, which may include addressing the loss of dwelling units. A program could provide grants for substantial rehabilitation, provide matching grants for homeowner improvements, or implement proactive code enforcement program. These actions may be reflected in quantified objectives for rehabilitation and conservation. 6. Promote and affirmatively further fair housing opportunities and promote housing throughout the community or communities for all persons regardless of race, religion, sex, marital status, ancestry, national origin, color, familial status, or disability, and other characteristics protected by the California Fair Employment and Housing Act (Part 2.8 (commencing with Section 12900) of Division 3 of Title 2), Section 65008, and any other state and federal fair housing and planning law. (Gov. Code, § 65583, subd. (c)(5).) As noted in Finding B1, the element must include a complete analysis of affirmatively furthering fair housing (AFFH). Based on the outcomes of that analysis, the element must add or modify programs. D. Quantified Objectives Establish the number of housing units, by income level, that can be constructed, rehabilitated, and conserved over a five-year time frame. (Gov. Code, § 65583, subd. (b)(1 & 2).) While the element includes quantified objectives for new construction by income group for very low-, low-, moderate- and above-moderate income, it must also include quantified objectives for rehabilitation and conservation (beyond at-risk preservation). The quantified objectives do not represent a ceiling on development, but rather set a target goal for the City to achieve, based on needs, resources, and constraints. B-11 City of Rancho Palos Verdes’ 6th Cycle Draft Housing Element Update Page 10 January 18, 2022 E. Public Participation Local governments shall make a diligent effort to achieve public participation of all economic segments of the community in the development of the Housing Element, and the element shall describe this effort. (Gov. Code, § 65583, subd. (c)(8).) While the element includes a general summary of the public participation, it must also demonstrate diligent efforts were made to involve all economic segments of the community in the development of the housing element. The element should be revised to discuss outreach to lower-income and special needs groups during the public participation efforts, solicitation efforts for survey responses, and participation in community workshops. In addition, the element should summarize the public comments and describe how they were considered and incorporated into the element. B-12 2021 State Housing Bill Summary The housing bills are divided into 5 general categories: (1) Affordable Housing/Density Bonus; (2) Accessory Dwelling Unit (“ADU”); (3) Housing Element; (4) Planning/Land Use; and (5) Other Housing Bills. The table below provides a summary of the new bills’ requirements by category and impacts to the City. It should be noted that the bills marked with an asterisk are the ones that made major changes to the land use/housing laws. Bill No. Summary Description Impacts to the City Affordable Housing/Density Bonus AB 491 (Ward) Housing. Affordable and Market Rate Units Adds Gov’t Code §17929 Applies to multi-family housing developments of 5 or more units that contain a mix of affordable and market rate units • Same access to common entrances, common areas, and amenities must be given to occupants of both affordable units and market rate units • Cannot isolate affordable units within structure to a specific floor or area on a specific floor. No impact on current code as this is not addressed in our development standards; this is a state law that applies to developers. AB 721 (Bloom) Covenants and Restrictions. Affordable Housing Adds Civ. Code § 714.6 Recorded limitations of any kind (e.g., CC&Rs) affecting the sale or transfer of any property right that restrict the number, size, or location of the residences that may be built on the property, or that restrict the number of persons or families who may reside on the property, are not enforceable against 100% affordable housing projects. No direct impact. The restriction on private CC&Rs applies irrespective of any specific language in our code. The City would be impacted if it attempted such a restriction on a publicly or privately owned 100% affordable housing development. AB 1043 (Bryan) Housing Programs. Rental Housing Developments. Affordable Rent This measure adds “acutely low- income households” to the list of income categories for purposes of defining affordable rents. Recommended amendments: Chapter 17.11 should be updated, it was last updated in 2008 and there have been a number of amendments to the C-1 Bill No. Summary Description Impacts to the City Amends Health &Safety Code § 50053 and adds § 50063.5 state law; the current code is outdated. Specific to this bill, RPVMC § 17.11.060 to include this new low-income category. *SB 290 (Skinner) Density Bonus Law. Qualifications for Incentives of Concessions. Student Housing for Lower- Income Students. Moderate- Income Persons and Families. Local Government Constraints Amends Govt Code §65915 • Expands eligibility of for-sale moderate income housing projects for density bonus and parking incentives by eliminating “common interest development” requirement. • Makes student housing projects eligible for one incentive / concession. • Expands definition of “total units” to include affordable units provided to satisfy City’s inclusionary housing requirement. • Eliminates impacts on “the physical environment” as basis for denying a concession, incentive or waiver request (aligns definition with Housing Accountability Act). Recommended amendments: Chapter 17.11 should be updated, it was last updated in 2008 and there have been a number of amendments to the state law; the current code is outdated. AB 571 (Mayes) Planning and Zoning. Density Bonuses. Affordable Housing Adds Gov’t Code §65915.1 Prohibits a city or county from imposing affordable housing impact fees, including inclusionary zoning fees and in- lieu fees, on a housing development’s affordable units under Density Bonus Law. Recommended amendments: RPVMC § 17.11.050 should be clarified to include that the amount of in lieu, inclusionary zoning, and impact fees shall be based on the number of market rate units only. AB 634 (Carrillo) Density Bonus Law. Affordability Restrictions Authorizes a city to require an affordability period longer than 55 years for affordable units in a density bonus project. •City must have an inclusionary housing ordinance that requires Recommended amendments: Chapter 17.11 should be updated, it was last updated in 2008 and there have been a number of amendments to the C-2 Bill No. Summary Description Impacts to the City Adds Gov’t Code §65915.2 affordability period longer than 55 years. state law; the current code is outdated. Specific to this bill, RPVMC § 17.11.070 to change the affordability requirement from 30 to 55 years. SB 728 (Hertzberg) Density Bonus Law. Purchase of Density Bonus Units by Nonprofit Housing Organizations Amends Govt Code §65915 • Adds option allowing “for-sale” density bonus units to be purchased initially by a qualified nonprofit housing organization • Recorded contract between developer and nonprofit required: • Repurchase option for nonprofit • Equity sharing agreement • 45-year affordability covenant • City may allow nonprofit (instead of City) to recapture initial subsidy and appreciation if 100% of proceeds used to promote homeownership for lower income households. Recommended amendments: Chapter 17.11 should be updated, it was last updated in 2008 and there have been a number of amendments to the state law; the current code is outdated. Specific to this bill, RPVMC § 17.11.060 references the density bonus for affordable housing incentives and § 17.96.550 defines a density bonus. There is no “for-sale” reference or requirement in the code for a density bonus. Additionally, no code language exists for a nonprofit to recapture an initial subsidy and appreciation. SB 591 (Becker) Senior Citizens. Intergenerational Housing Developments Amends B&P §11010.0, adds Civil Code §51.3.5 • Authorizes the establishment of an intergenerational housing development that includes senior citizens along with caregivers and transition-age youth. • Covenants, conditions, and restrictions and other documents or written policy for the development must set forth the limitations on occupancy, residency, or use. • Requires at least 80% of the occupied dwelling units in an intergenerational housing development to be occupied by Recommended amendments: Consider adding intergenerational housing to the list of permitted uses in multi- family zones. C-3 Bill No. Summary Description Impacts to the City at least one senior citizen, as specified, and up to 20% of the occupied dwelling units in the development to be occupied by at least one caregiver or transition-age youth, as specified. • Development must be affordable to lower-income households. Accessory Dwelling Unit (“ADU”) Legislation AB 345 (Quirk- Silva) Accessory Dwelling Units. Separate Conveyance Effective January 1, 2022, this bill requires each local agency to allow an accessory dwelling unit to be sold or conveyed separately from the primary residence to a qualified buyer. Recommended amendments: Add clarification language to RPVMC § 17.10.050 to specify under which conditions ADUs can be sold separately from the primary dwelling. Housing Element *AB 215 (Chiu) Planning and Zoning Law. Housing Element. Violations Amends Govt Code § 65585 Prior Procedures: • City must submit draft Housing Element to HCD at least 60 days before adoption. • HCD had 60 days to review draft and provide comments. • Public comment period could run contemporaneously with HCD’s review. New Procedures: • Minimum 30-day public review period plus at least 10 days to incorporate public’s comments before City may submit first draft to HCD. • HCD has 90 days to review and provide comments on a first draft or within 60 days of its New procedures and timelines for adoption of the Housing Element. Note HCD’s expanded enforcement authority. Prior to enforcement, HCD is to offer a noncompliant City 2 meetings to discuss the violations. Enforcement would likely be to seek a court order to compel the City to complete a compliant Housing Element within a specified time limit. The AG has the authority to seek any and all remedies available to it under the law to obtain compliance. This may include fines, although these are not expressly articulated C-4 Bill No. Summary Description Impacts to the City receipt in the case of a draft amendment. • Before submitting subsequent draft to HCD, City must post it on website for 7 days. • HCD has 60 days to review and comment on each subsequent draft. Additionally: • Expands HCD enforcement authority to include: Housing Crisis Act of 2019; Gov’t Code §8899.50 (Obligation to Affirmatively Further Fair Housing); Gov’t Code §65913.4 (streamlined ministerial review of affordable housing projects); Gov’t Code §§65650-65656 (ministerial review of supportive housing projects); Gov’t Code §§65660-65688 (ministerial review of low barrier navigation centers) • Establishes 3 year Statute of Limitations for Enforcement Actions. • Authorizes HCD to hire outside counsel if AG declines to enforce. Another impact to the City of a noncompliant HE is that the City is not eligible for any state financial assistance that requires a compliant HE. AB 1029 (Mullin) Housing Elements. Pro- housing Local Policies Amends Govt Code §65589.9 Authorizes HCD to include the preservation of affordable housing units through the extension of existing project- based rental assistance covenants to avoid the displacement of affected tenants and a reduction in available affordable housing units to the list of specified pro-housing local policies for competitive grant scoring purposes. Any policy for the preservation of affordable housing units will increase the City’s chances to obtain grant funding or subsidies from the state to assist with affordable housing. C-5 Bill No. Summary Description Impacts to the City AB 1029 will also allow local governments to access state funds to assist with the acquisition of or provide subsidies to housing units in order to obtain preference when scoring applications for programs similar to AHSC grant program, Transformative Climate Communities program, and Infill Incentive Grant Program. It also requires HCD to adopt such policies as part of the formal rulemaking process AB 787 (Gabriel) Planning and Zoning. Housing Element. Converted Affordable Housing Units. Adds Govt Code § 65400.2 • Conversion of existing “above- moderate” income multifamily housing units to “moderate” income housing units. • Cities can get credit for up to 25% of their moderate income RHNA. Requirements • Initial post-conversion rent must be >10% less than previous 12 month average • Future rent increases capped at ratio of initial rent to 100% income level rent limit • 55 year affordability covenant and regulatory agreement with public entity required • Public entity must retain purchase option for amount of outstanding debt This bill adds a method by which the City can get credit towards its RHNA requirements for conversions of above moderate-income multi-family housing units to moderate income housing units. AB 1304 (Santiago) Affirmatively Further Fair Housing. Clarifies that cities’ AFFH obligation per Gov’t Code §8899.50(b) “mandatory” • HCD can bring enforcement action. • Potentially creates a private right of action under statute. Housing Element must comply with the new requirements regarding AFFH provisions. C-6 Bill No. Summary Description Impacts to the City Housing Element Amends Govt Code §§ 8899.50, 65583, and 65583.2 • Expands required AFFH analysis for Housing Elements as follow: • Site-specific analysis • Goals, objectives, and polices • Trend analysis • Assessment of local and regional historical origins and current policies and practices *AB 1398 (Bloom) Planning and Zoning. Housing Element. Rezoning of Sites. Pro- housing Local Policies Amends Govt Code §§ 65583, 65583.2, and 65588 Housing Element: • Requirement: Adopt certified Housing Element by statutory deadline • Penalty: Mandatory rezoning to meet RHNA must be completed within 1 year instead of 3 years • Deadline to adopt 6th Cycle Housing Element: February 12, 2022 • Penalty Deadline to Complete Mandatory Rezoning: October 15, 2022 • HCD cannot certify City’s Housing Element until mandatory rezoning is completed • If HCD already certified City’s Housing Element, it may revoke certification • HCD may also refer City to Attorney General or bring civil action against City The rezoning required by the new Housing Element in order to meet RHNA will need to be completed no later than October 15, 2022, as the Housing Element will not be adopted by February 12, 2022. Planning/Land Use *SB 9 (Atkins) Housing Development. Approvals Big picture •Ministerial Approval of Two-Unit Housing Developments •Ministerial Approval of Parcel Map for “Urban Lot Splits” •One-Year Tentative Tract Map Life Extension C-7 Bill No. Summary Description Impacts to the City Amends Govt Code § 66452.6; adds §§ 65852.21 and 66411.7 2-unit housing developments (§ 65582.21) • Contains “No More Than” 2 Residential Units • Single-Family Lots Only • Attached or Detached • Plus ADU(s) and/or JADU (unless combined with Urban Lot Split) •Ministerial Approval Only (no public hearings, no discretionary review, no CEQA) Urban lot splits (§ 66411.7) • Subdivision of one single-family lot into two new lots • Two lots must be of approximately equal size (60/40 max split) • Each lot must be no smaller than1,200 square feet (unless City expressly permits smaller lots) • City can prohibit ADU(s) and/or JADU(s) • Ministerial Approval Only (no public hearings, no discretionary review, no CEQA) Qualifying criteria applicable to urban units and lot splits • Site is in a single-family residential zone • Lot located in an urbanized area • Lot not located in an environmentally sensitive or dangerous area • Site not a historic landmark or within a designated historic district • Existing lot was not established through a prior SB 9 urban lot split (urban lot splits only) • Neither the owner nor “anyone acting in concert with” the owner previously subdivided an adjacent parcel through a SB 9 urban lot split (urban lot splits only) • The proposed project cannot involve demolition or alteration of: • Housing that has been occupied by a tenant within the last 3 years; • Deed-restricted affordable housing; • Housing that is subject to local rent or price control; or • Housing that was withdrawn from the rental market within the last 15 years to avoid rent control. • The proposed project cannot involve demolition of more than 25% of the existing exterior walls of an existing dwelling unless: • Permitted by local ordinance; or C-8 I Bill No. Summary Description Impacts to the City • The site has not been occupied by a tenant in the last 3 years. Design standards and limitations Design Standards – City may impose objective zoning, subdivision, and design review standards if the standard does not physically preclude the construction of two units with at least 800 square feet of floor area Setbacks - No setbacks required for an existing structure or structure constructed in the same location and to the same dimensions as an existing structure. Otherwise, may require 4 -foot side and rear yard setbacks Off-street Parking – City may require one space per unit, except no parking required for projects: • Located within half-mile walking distance of public transit; or • Car share vehicle located within one block. Short-term Rentals – City must require any rental of an SB 9 unit to be for a term longer than 30 days Project Denial – City may deny a proposed SB 9 project if building official makes a written finding that the project would have a specific, adverse impact upon public health and safety or the physical environment and there is no way to mitigate the impact (Housing Accountability Act standard) Dedications & Offsite Improvements – City may not require right- of-way dedications or construction of offsite improvements Easements – City may require easements for public services and facilities Access – City may require the parcels to have access to, provide access to, or adjoin the public right-of-way Residential – City must require uses allowed on a lot be limited to residential uses Owner Occupancy – Applicant must sign an affidavit stating that they intend to occupy one of the housing units as their principal residence for a minimum of three years from the date of the lot split *SB 10 (Wiener) Planning and Zoning. Housing Development. Density Adds Govt Code § 65913.5 • Authorizes City Council to adopt Upzoning Ordinance allowing up to 10 units per parcel • Overrides voter initiative (if adopted by 2/3 vote) • Upzoning is permanent – future City Council may not reduce the density Potentially no impact, as this applies to up zoning ordinances the City adopts, but adoption of such ordinances is not required. However, note that such up zoning ordinances once adopted cannot be undone, even by voter initiative. C-9 Bill No. Summary Description Impacts to the City • Authority expires (sunsets) on January 1, 2029 Limits • Parcel must be located in “transit-rich area” or “urban infill site” • Not eligible if designated as open-space or for park and recreational purposes by voter adopted initiative • High or very high fire hazard severity zones • Subject to CEQA • Initial SB 10 ordinance exempt from CEQA • Subsequent additional upzoning is subject to CEQA/ Baseline is zoning before SB 10 Ordinance • Future proposed projects of more than 10 units on SB 10 zoned parcel: • May not be approved ministerially or by-right • May not be considered exempt from CEQA *SB 478 (Wiener) Planning and Zoning Law. Housing Development Projects Adds Govt Code § 65913.11 and Civil Code §4747 • Establishes Minimum FAR Standards for 3-10 unit multi- family housing projects • Must be located in a multi- family or mixed use zone (not SFR zones or historic properties) • Invalidates CC&Rs that effectively prohibit or unreasonably restrict multi-family housing projects meeting above FAR standards Cities may not: • Impose FAR <1.0 on 3-7unit project No impact, currently there is no FAR standard provided in the code. C-10 Bill No. Summary Description Impacts to the City • Impose FAR <1.25 on 8-10 unit project • Impose equivalent lot coverage requirement • Deny project solely on basis that existing lot area does not meet City’s minimum lot size requirement AB 803 (Boerner Horvath) Starter Home Revitalization Act of 2021 Adds Govt Code § 66499.40 • Statewide authorization for small lot subdivisions • Intended to facilitate development of: small; fee simple; zero lot line; moderate density; detached; “Starter Homes”; in multi-family zoned areas Recommended amendments: Add provisions to the zoning code applicable to multi-family zones consistent with the provisions of Govt Code § 66499.40. *AB 1174 (Grayson) Planning and Zoning. Housing. Development Application Modifications, Approvals, and Subsequent Permits Amends Govt Code § 65913.4 This measure makes changes to the ministerial process created by SB 35. These changes include the following: • "Development activity" includes permitted demolition and grading, rather than only vertical construction; • The extension of the project approval that must be granted when a developer requests a project modification only applies to the first requested modification; • In determining whether a project modification would allow local agencies to apply new objective development standards, these calculations must not include underground space; • For specified large projects that submitted applications Recommended amendments: SB 35 authorizes a development proponent to submit an application for a multi-family housing development that is subject to a streamlined, ministerial approval process, as provided, and not subject to a conditional use permit, if the development satisfies specified objective planning standards, including, among other things, that the development and the site on which it is located satisfy specified location, urbanization, and zoning requirements. RPVMC should be updated to provide for ministerial approval of certain housing development projects, as required by SB 35 and subsequent amendments, including AB 1174. C-11 Bill No. Summary Description Impacts to the City before 2019, the definition of "affordable rent" for 70%of the affordable units must use the definition of "affordable rent" used by the California Tax Credit Allocation Committee, rather than the one specified in the Health and Safety Code; and, • Amends the findings and declarations to clarify that it is the provision of affordable housing that is a matter of statewide concern and is not a municipal affair, rather than that the contents of this bill are unto themselves a matter of statewide concern. Other Housing Legislation AB 1180 (Mathis) Local Governments. Surplus Land. Tribes Amends Govt Code 54221 “Exempt surplus land” now includes land transferred by a local agency to a federally recognized California Indian tribe. No direct impact. In the event the City wishes to transfer land to a Californian Indian tribe, the transfer will be exempt from the provisions of the Surplus Land Act. SB 51 (Durazo) Surplus Residential Property Amends Govt Code §§ 54234 and 54237 of, and to add Sections 54237.9, 54237.10, 54239.1, The surplus land disposal procedures, as they existed on Dec. 31, 2019, apply if a local agency, as of Sept. 30, 2019: • Has issued a competitive request for proposals that seeks development proposals for the property that includes a residential component of at least 100 residential units and 25% of the total units. No impact. C-12 Bill No. Summary Description Impacts to the City 54239.2, and 54239.3 developed comply with specified affordability criteria, • Provided that a disposition and development agreement, as defined, is entered into not later than Dec. 31, 2024. • If the property is not disposed of pursuant to a qualifying DDA before March 31, 2026, or if no disposition and development agreement is entered into before Dec. 31, 2024, future negotiations for and disposition of the property must comply with the surplus land disposal procedures then in effect. *SB 791 (Cortese) California Surplus Land Unit Adds Govt Code §54900 et seq. HCD’s California Surplus Land Unit established with the primary purpose of facilitating the development and construction of residential housing on local surplus land. This Unit may, among other things: • Facilitate agreements between housing developers and local agencies that seek to dispose of surplus land; • Provide advice, technical assistance, and consultative and technical service to local agencies with surplus land and developers that seek to develop housing on the surplus land; and • Collaborate with specified state agencies to assist housing developers and local agencies with obtaining grants, loans, tax credits, credit enhancements, and other types of financing that facilitate the construction of housing on surplus land No immediate impact as the City does not have property to dispose of. As the Surplus Land Act may apply to properties in the Successor Agency’s Property Management Plan, having this Unit at HCD could be helpful. C-13 Bill No. Summary Description Impacts to the City *SB 8 (Skinner) Housing Crisis Act of 2019 Amends Govt Code §§ 65589.5, 65905.5, 65913.10, 65940, 65941.1, 65943, 65950, 66300, and 66301 Amends the Housing Crisis Act of 2019. The most notable changes are: • Clarifies that “housing development project” includes projects that involve no discretionary approvals, projects that involve both discretionary and nondiscretionary approvals, and projects that include a proposal to construct a single dwelling unit. The clarification does not affect a project for which an application was submitted before January 1, 2022. • Extends the sunset on the Act by five years, to Jan. 1, 2030, and provides that until Jan. 1, 2034, the Act’s provisions apply to a housing development project that submits a preliminary application before Jan. 1, 2030; • Extends by 1 year, up to 3.5 years, the period during which a local government may not impose new rules or standards on an affordable housing project, as defined; • Clarifies that appeals and public meetings related to Density Bonus Law are counted for the purposes of the 5 hearing limit in the Act; and • Includes technical changes to the limitation on a local government’s ability to reduce the intensity of land use in its jurisdiction. The City may not make changes to the general plan land use designation, specific plan use designation, or zoning changes that do any of the following: reduce the height, density, floor area ratio, increased space or lot size requirements, setback requirements, minimum frontage requirements, or other actions that would reduce a site’s residential development capacity. The City may change a land use designation or zoning ordinance to a less intensive use if it concurrently changes the development standards, policies, and conditions applicable to other parcels within the City to ensure that there is no net loss in residential capacity. The bill defines what concurrently means in this context. The City may not approve a housing development project that requires the demolition of occupied or vacant protected units, as defined, unless the developer agrees to provide the occupants of any protected units with relocation benefits and a right of first refusal for a comparable unit available in the new housing development affordable to the household at an affordable rent or an affordable housing cost, with certain limitations. Additional noteworthy change: City cannot hold more than 5 C-14 Bill No. Summary Description Impacts to the City hearings related to the approvals necessary for a housing project that complies with the applicable, objective general plan and zoning standards in effect at the time an application is deemed complete. This bill expands the definition of what counts as a hearing, and specifies that a continued hearing counts as one of the 5. *AB 602 (Grayson) Development Fees. Impact Fee Nexus Study Amend Govt Code §§ 65940.1 and 66019 of add Section 66016.5 to, the Government Code, and to add Section 50466.5 Nexus Study required for all Development Impact Fees (DIF) • Nexus Studies must be updated at least every 8 years • Large jurisdictions (>250,000) must incorporate a capital improvement plan into Nexus Study • Public hearing with 30 days’ notice required for all Nexus Studies • For Housing Projects: DIF must be calculated proportionately to square footage of proposed housing units • Exception if City makes specified findings • Legal presumption of validity if using square footage metric • HCD will create Nexus Study template with method of calculating feasibility of housing at given fee level • Creates new process for public to challenge impact fees • Anyone may submit evidence to City that findings supporting DIFs are insufficient or City violated Mitigation Fee Act The City will have to comply with the Nexus Study requirements of this bill to impose DIFs going forward, and notably will need to update its DIFs at least every 8 years. C-15 Bill No. Summary Description Impacts to the City • City Council must consider evidence and whether to adjust the adopted fee • New administrative requirements • Cities must post fee schedules or link on website • Cities must (1) request Developers to provide total amount of fees exactions for Project upon issuance of Certificate of Occupancy/ Final Inspection; (2) post information on City website; and (3) update information at least twice per year. C-16