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CC SR 20240319 G - Housing Element City of Rancho Palos Verdes CITY COUNCIL MEETING DATE: 03/19/2024 AGENDA REPORT AGENDA HEADING: Consent Calendar AGENDA TITLE: Consideration and possible action to forward the 2023 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 2023 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, AICP, Associate Planner REVIEWED BY: Brandy Forbes, AICP, Director of Community Development APPROVED BY: Ara Mihranian, AICP, City Manager ATTACHED SUPPORTING DOCUMENTS: A. 2023 Annual Progress Report on the implementation of the Rancho Palos Verdes Housing Element (Page A-1) BACKGROUND: Each California city, pursuant to Government Code §65300, is required to prepare and adopt a General Plan for its jurisdiction with certain mandatory elements, including a Housing Element. The Housing Element, which is required to be updated every 8 years, consists of: (a) an identification and analysis of existing and projected housing needs, 1 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. DISCUSSION: Pursuant to Government Code §65400, a local jurisdiction is required to prepare and submit an annual progress report on a jurisdiction’s status and progress in implementing its Housing Element by April 1st of each year. While the City’s 6th Cycle Housing Element continues to be a work in progress, Staff utilized the City Council-adopted 6th Cycle Housing Element for reporting purposes in the 2023 Annual Progress Report to the Department of Housing and Community Development (HCD). In 1995, the California 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 the Local Early Action Planning (LEAP) grant funds for applicable jurisdictions. The following forms are required to be used to satisfy HCD reporting requirements: • 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 2023 calendar year • Table F2 – Above Modern income, units converted to Moderate Income pursuant to Government Code Section 65400.2 • Table G - Locally owned lands in the housing element site inventory • Table H - Locally owned surplus sites • Table J – Student housing development for lower income students for which was granted a density bonus • Table K – Tenant Preference Policy • LEAP Reporting The attached Housing Element 2023 Annual Progress Report (Attachment A) 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 K, 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, and student housing. 2 Due to the extensive amount of information on the tables and to ensure that the information being presented remains legible, the Housing Element 2023 Annual Progress Report is available for review here. Staff is of the opinion that 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. Upon acceptance by the City Council, the Housing Element 2023 Annual Progress Report will be delivered to OPR and HCD by the submittal deadline of April 1, 2024. 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. ADDITIONAL INFORMATION: 6th Cycle Housing Element & Compliance Measure Update In August 2022, the City Council adopted the City’s new 6th Cycle Housing Element and associated environmental review, which included a Negative Declaration. The adopted Housing Element was subsequently forwarded to HCD for compliance review with State housing law. In October 2022, HCD notified the City’s Community Development Department that although the adopted Housing Element met many of the statutory requirements; the document was ultimately not found to be in compliance. As part of their review, HCD outlined additional document corrections required to be completed in order to achieve compliance. Staff worked with the City’s Housing Element Update consultant, Environmental Science Associates, on the preparation of a revised Housing Element for HCD resubmittal. On January 30, 2024, City Staff submitted a Draft Revised Final Housing Element (PDF) to HCD for formal review. The statutory requirement for HCD to review the City’s revised Housing Element is within 60 days (a determination from HCD is expected by the end of March). Along with this effort, City Staff is finalizing an associated environmental addendum and assembling a rezoning package that implements programs outlined in the Housing Element and which are required to be in place for the City’s Housing Element to be deemed in compliance with State Housing Law. Staff is working with Dudek on the preparation of compliance measures, which include, but are not limited to, the completion of the Mixed-Use Overlay District (MUOD) along the City’s commercial corridors and the rezoning of some non-commercial properties via a Residential Overlay District (ROD) throughout the City to accommodate for more housing density. Pursuant to Assembly Bill 1398, such compliance measures must be completed prior to HCD deeming the resubmitted Housing Element to be in compliance with State Housing Element Law. Recently, the City’s Community Development Department launched a virtual open house on the City’s website to provide the public with an update on the revisions to the 6th Cycle Housing Element, as well as an update on compliance measures 3 including the preparation of the MUOD and ROD to accommodate potential housing sites throughout the City. To expedite the adoption and implementation of the revised Housing Element, there are multiple action items required to be completed within the next two months to reach that end goal. To that point, provided below is a proposed timeline that includes public hearings before the City’s Planning Commission and City Council: Housing Element Update Action Item March 1-19, 2024 Virtual open house available on the City’s website March 4, 2024 Housing Element Ad Hoc Committee meeting March 7, 2024 Notice for Planning Commission public hearing published March 19, 2024 2023 General Plan and Housing Element Annual Reports presented to the City Council March 26, 2024 Planning Commission public hearing on recommendations to the City Council regarding the revised Housing Element, environmental review and associated compliance measures April 16, 2024 City Council public hearing on adoption of Urgency Ordinance related to the revised Housing Element, environmental review and associated compliance measures May – July 2024 Public hearings, introduction, and adoption of the ordinances to adopt the zoning amendments by regular ordinance Planning Commission Review On March 12, 2024, the Planning Commission is scheduled to review the 2023 Annual General Plan Update Report on the implementation of the Rancho Palos Verdes General Plan. Any additional information or feedback provided by the Planning Commission in response to their review of the report will be forwarded to the City Council as late correspondence ahead of their consideration of the same topic at the March 19th City Council Meeting. CONCLUSION: Staff recommends that the City Council authorize forwarding the City’s 2023 Housing Element Annual Progress Report to 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 2023 Annual Progress Report, prior to forwarding the report to the required state agencies. 4