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CC SR 20240604 01 - Housing Element PUBLIC HEARING Date: June 4, 2024 Subject: Consideration and possible action to adopt additional amendments to Title 17 of the Rancho Palos Verdes Municipal Code to further effectuate the City’s Revised Final 2021-2029 Housing Element. Recommendation: (1) Adopt Ordinance No.___-U, “AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES, CALIFORNIA, AMENDING CHAPTER 17.47 (MIXED USE OVERLAY DISTRICT (MUOD)), CHAPTER 17.48 (RESIDENTIAL OVERLAY DISTRICT (ROD)), CHAPTER 17.10 ACCESSORY DWELLING UNIT AND JUNIOR ACCESSORY DWELLING UNIT DEVELOPMENT, AND CHAPTER 17.96 (DEFINITIONS) OF TITLE 17 (ZONING) OF THE RANCHO PALOS VERDES MUNICIPAL CODE, TO EFFECTUATE THE REVISED FINAL 2021 -2029 HOUSING ELEMENT”; and (2) Introduce Ordinance No.___, “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES, CALIFORNIA, AMENDING CHAPTER 17.47 (MIXED USE OVERLAY DISTRICT (MUOD)), CHAPTER 17.48 (RESIDENTIAL OVERLAY DISTRICT (ROD)), CHAPTER 17.10 ACCESSORY DWELLING UNIT AND JUNIOR ACCESSORY DWELLING UNIT DEVELOPMENT, AND CHAPTER 17.96 (DEFINITIONS) OF TITLE 17 (ZONING) OF THE RANCHO PALOS VERDES MUNICIPAL CODE, TO EFFECTUATE THE REVISED FINAL 2021 -2029 HOUSING ELEMENT.” 1. Report of Notice Given: City Clerk 2. Declare Public Hearing Open: Mayor Cruikshank 3. Request for Staff Report: Mayor Cruikshank 4. Staff Report & Recommendation: Octavio Silva, Deputy Director/ Planning Manager and Jessica Bobbett, Senior Planner 5. Council Questions of Staff (factual and without bias): 6. Testimony from members of the public: The normal time limit for each speaker is three (3) minutes. The Presiding Officer may grant additional time to a representative speaking for an entire group. The Mayor also may adjust the time limit for individual speakers depending upon the number of speakers who intend to speak. 7. Declare Hearing Closed/or Continue the Public Hearing to a later date: Mayor Cruikshank 8. Council Deliberation: The Council may ask staff to address questions raised by the testimony, or to clarify matters. Staff and/or Council may also answer questions posed by speakers during their testimony. The Council will then debate and/or make motions on the matter. 9. Council Action: The Council may: vote on the item; offer amendments or substitute motions to decide the matter; reopen the hearing for additional testimony; continue the matter to a later date for a decision. CITY COUNCIL MEETING DATE: 06/04/2024 AGENDA REPORT AGENDA HEADING: Public Hearing AGENDA TITLE: Consideration and possible action to adopt additional amendments to Title 17 of the Rancho Palos Verdes Municipal Code to further effectuate the City’s Revised Final 2021- 2029 Housing Element. RECOMMENDED COUNCIL ACTION: (1) Adopt Ordinance No.___-U, “AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES, CALIFORNIA, AMENDING CHAPTER 17.47 (MIXED USE OVERLAY DISTRICT (MUOD)), CHAPTER 17.48 (RESIDENTIAL OVERLAY DISTRICT (ROD)), CHAPTER 17.10 ACCESSORY DWELLING UNIT AND JUNIOR ACCESSORY DWELLING UNIT DEVELOPMENT, AND CHAPTER 17.96 (DEFINITIONS) OF TITLE 17 (ZONING) OF THE RANCHO PALOS VERDES MUNICIPAL CODE, TO EFFECTUATE THE REVISED FINAL 2021-2029 HOUSING ELEMENT”; and (2) Introduce Ordinance No.___, “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES, CALIFORNIA, AMENDING CHAPTER 17.47 (MIXED USE OVERLAY DISTRICT (MUOD)), CHAPTER 17.48 (RESIDENTIAL OVERLAY DISTRICT (ROD)), CHAPTER 17.10 ACCESSORY DWELLING UNIT AND JUNIOR ACCESSORY DWELLING UNIT DEVELOPMENT, AND CHAPTER 17.96 (DEFINITIONS) OF TITLE 17 (ZONING) OF THE RANCHO PALOS VERDES MUNICIPAL CODE, TO EFFECTUATE THE REVISED FINAL 2021-2029 HOUSING ELEMENT.” FISCAL IMPACT: There is no fiscal impact, as the 2021-2029 Housing Element Program implementation measures are budgeted annually in the Community Development Department Planning Division budget. Amount Budgeted: N/A Additional Appropriation: N/A Account Number(s): N/A ORIGINATED BY: Octavio Silva, Deputy Director of Community Development/Planning Manager Jessica Bobbett, Senior Planner REVIEWED BY: Brandy Forbes, Director of Community Development APPROVED BY: Ara Mihranian, AICP, City Manager 1 ATTACHED SUPPORTING DOCUMENTS: The following attachments can be viewed via the links embedded in the staff report: A. Urgency Ordinance No.___-U,”; (page A-1) • Exhibit “U-A”- Addendum No. 1 to the Negative Declaration for the 2021-2029 Housing Element and associated Housing Programs • Exhibit “U-B” – Draft Code Amendments to Title 17 (Zoning) of Rancho Palos Verdes Municipal Code and Draft Accessory Dwelling Unit and Junior Accessory Dwelling Unit Code Amendment • Exhibit “U-C” - and Revised Zoning Map • Exhibit “U-D” - List of Properties to be rezoned B. Ordinance No.__ (page B-1) C. Planning Commission Slide Presentation May 14, 2024 D. Public Correspondence E. Response to public correspondence prepared by Environmental Science Associates (ESA) BACKGROUND: State Required 6th Cycle Housing Element The Housing Element is one of the required elements of a municipality’s General Plan. Unlike the other elements, which can be updated on any timetable suitable to a public agency, the Housing Element must be updated every eight years as required by state law. The 6th Cycle Housing Element covers the period from 2021 to 2029. The original deadline for adopting a certified 6th Cycle Housing Element in the City’s region was October 15, 2021, with a 120-day grace period to February 12, 2022. The standard practice is for a municipality to submit a draft Housing Element to the California Department of Housing and Community Development, or HCD, prior to adoption to get the initial feedback from the state agency. This is a required step before a municipality can adopt its Housing Element. One of the driving factors of a Housing Element is the Regional Housing Needs Assessment (RHNA) allocation obligation. Each city must, in its Housing Element, provide for zoning and land use designations adequate to meet its RHNA for the Housing Element eight-year cycle. A city is not required to build housing, but to simply ensure that the housing can be built through zoning. The state establishes the total shortage of housing (the RHNA number) and distributes the amount needed for each region. The City of Rancho Palos Verdes is in the Southern California Association of Governments (SCAG) region. After the state determines a regional housing shortage, SCAG has to establish a methodology to distribute that overall RHNA number to the municipalities in the region (Imperial County, Los Angeles County, Orange County, Riverside County, San Bernadino County, and Ventura County). SCAG considers multiple methodologies 2 including several factors, such as proximity to transit, existing densities, and availability of services. SCAG did not finalize its methodology for RHNA distribution until late 2020, with an appeal period in early 2021 (the City appealed, unsuccessfully, its RHNA allocation). The RHNA obligations for the 6th Cycle were considerably higher for all municipalities than prior cycles. As a result, there was little time for the majority of municipalities to determine adequate sites to meet these vastly higher RHNA numbers. Adopted 6th Cycle Housing Element The City has been working on the 6th Cycle Housing Element since spring 2021, with the Planning Commission and City Council conducting joint public hearings to review the draft Housing Element in August and October 2021. On November 19, 2021, a draft Housing Element was submitted to HCD. On January 18, 2022, HCD completed its review of the Draft Housing Element and noted that substantial revisions were necessary to comply with state housing element law. This did not leave sufficient time to revise the draft and for the City Council to adopt a Final Draft Housing Element and allow for HCD’s statutory review period of 60 days for the Final Draft Housing Element to be deemed compliant within 120-day grace period of the statutory deadline (October 15, 2021). This was also the case for most cities in the SCAG region due to the complexities of this housing planning period of 2021-2029. However, because so many cities were not able to meet the statutory deadlines due, the state Legislature passed Senate Bill No. 197 (Housing Budget Trailer Bill), which provided additional time for local agencies with housing elements due in 2021, but which did not have a Housing Element in substantial compliance within 120 days of the statutory deadline. Specifically, the bill provided that local governments which adopted a substantially compliant 6th Cycle Housing Element by October 15, 2022, would have three years and 120 days from the original statutory deadline (October 15, 2021) to complete the required rezoning of sites to comply with that Housing Element. However, no extension was provided for municipalities that did not meet the October 15, 2022 deadline. On August 11, 2022, the City Council adopted Resolution No. 2022-49, adopting the City’s 6th Cycle Housing Element and associated environmental review, which included a Negative Declaration pursuant to the California Environmental Quality Act (CEQA). The adopted Housing Element was subsequently forwarded to HCD for compliance review with state housing element law. In October 2022, HCD notified the City’s Community Development Department via letter that, although the adopted Housing Element met many of the statutory requirements, the document was ultimately not in substantial compliance. As part of its review, HCD outlined additional document corrections and site analyses required to achieve substantial compliance. HCD corrections included, but were not limited to, providing support information related to affirmatively furthering fair housing efforts and clarifying the realistic capacity of residential development on identified Potential Housing Sites outlined in the City’s Housing Element. 3 The City’s 6th Cycle Housing Element adopted in August 2022 included policies, strategies, and actions to facilitate the construction of new housing and the preservation of existing housing throughout the City. More specifically, the document outlined the plan to accommodate the City’s RHNA allocation of a total of 639 new housing units in various income categories over the planning period. In addition, the Housing Element accommodated eight lower-income units that that were carried over from the previous planning period of 2013-2021 (5th Cycle), for a total of 647 new housing units throughout the City. The housing unit breakdown by income category outlined in the Housing Element is as follows: • Lower 400 units (minimum 30 dwelling units (d.u)/ acre required) • Moderate 125 units (higher density sites) • Above Moderate 122 units (sites zoned for densities less than 30 d.u./acre) It is important to note that the Housing Element only provides the regulatory framework to accommodate and support the construction of new housing units. The document does not require or approve the construction of a specific project. HCD Review of Adopted 6th Cycle Housing Element Following the October 2022 HCD determination that the City’s 6th Cycle Housing Element was not compliant with state housing element law, HCD requested an informal review to occur before an updated version of the Housing Element was presented to the City Council again for adoption, to ensure its comments were sufficiently addressed. After several consultation meetings with HCD, on September 14, 2023, City Staff submitted a revised draft of the City’s Housing Element to HCD for an informal 60 -day review of the document. The revised draft included updates addressing HCD’s requested corrections as well as the preparation of a detailed site-by-site inventory analysis, which was prepared by the City’s housing consultant Dudek, which studied the physical development feasibility of the City’s Potential Housing Sites Inventory. The analysis included some hypothetical residential site layouts based on physical site and area constraints that were studied, which in some cases resulted in updates to the developable area and proposed density of a potential housing site. As a result of this site- by-site inventory analysis, an additional housing site was identified at 500 Silver Spur Road (Site No. 15- Assessor Parcel No. 7586-028-019) that was not previously accounted for in the City’s adopted 6th Cycle Housing Element. The site accommodated 38 affordable housing units with an overall density of 45 dwelling units per acre. This site was included in the City’s Potential Housing Sites Inventory outlined in the September 14, 2023 revised draft Housing Element, for a total of 31 potential housing sites throughout the City. City Staff met with HCD Staff to discuss the review of the City’s September 14, 2023, revised draft Housing Element on November 17, 2023, December 15, 2023, and January 4 25, 2024. During the January 25, 2024 meeting, HCD Staff noted that any subsequent submittal of revised documents should be submitted formally to ensure that City Staff would receive a determination on the status of the revised document within HCD’s statutory required 60-day review period. This direction was contrary to previous messaging from HCD Staff, which outlined that informal submittals were needed. On January 30, 2024, City Staff posted a second revised draft Housing Element on the City’s website site and circulated the document to interested parties. On February 7, 2024, after the required seven-day posting and circulation of the document, City Staff submitted the information to HCD for a formal review, establishing a 60 -day (April 5, 2024) deadline for HCD to provide a review response. On March 11, 2024, City Staff met with HCD Staff to discuss additional clarifications to the document that were needed. At that time, HCD Staff also indicated that revisions to the document could be made and resubmitted to HCD to ensure that the City’s January 30 revised Housing Element submittal could be found to be in substantial compliance by HCD’s 60-day statutory deadline of April 5, 2024. Accordingly, City Staff prepared document clarifications requested by HCD, and forwarded the information to HCD Staff for review. On March 14, 2024, City Staff received an email from HCD Staff indicating that there were no additional questions regarding the City’s Housing Element. Based on this information, City Staff prepared a Draft Revised Final Housing Element on March 15, 2024 and submitted the document to HCD on March 22, 2024 after the required seven-day posting of the revised document on the City’s website and circulation to interested parties. Revised Final 2021-2029 Housing Element On March 26, 2024, the Planning Commission considered the Draft Revised Final Housing Element and related Housing Program implementation measures and provided recommendations for City Council consideration , which generally included screened parking, facade articulation in the ROD, clarifying developable areas for the Salvation Army Site and UCLA South Bay sites, consider the proximity of the Clipper Site No. 16 to the landslide complex, and consider not eliminating view preservation for sites No. 16 and No. 17. On April 16, 2024, the City Council considered the recommendations of the Planning Commission, and determined that the Negative Declaration adopted on August 11, 2022, as amended by Addendum No. 1, adequately analyzed the impacts from the adoption and implementation of the Revised Final 2021-2029 Housing Element, and following the public hearing adopted Resolution No. 2024-16 approving a General Plan Amendment for the City’s Revised Final 2021-2029 Housing Element, a General Plan Amendment for the Land Use Element and Land Use Map, and a Local Coastal plan (Coastal Specific Plan) Amendment to effectuate the 2021-2029 Housing Element. The City Council also adopted Resolution No. 2024-17 to forward to the California Coastal Commission the amendments to the Local Coastal Program (LCP) Coastal Specific Plan and zoning map related to the 6th Cycle Housing Element actions in the Coastal Zone, consistent with 5 State Housing Law. The April 16th City Council Staff Report for the consideration of the Revised Final Housing Element is available for review. Additionally, in order to protect the health, safety, and welfare of the residents of the City of Rancho Palos Verdes, on April 16, 2024 the City Council unanimously adopted Urgency Ordinance No. 678U approving zoning amendments inclusive of Zoning Map amendments and development standards for Accessory Dwelling Units (ADUs) and Junior Accessory Dwelling Units (JADUs), to immediately effectuate the Housing Element, including rezoning sufficient sites to accommodate the City’s regional housing needs allocation by adopting the implementation actions to effectuate the City’s Revised Final 2021-2029 Housing Element. The City Council also initiated code amendment proceedings related to amendments to Chapter 17.40 (Overlay Control Districts), Chapter 17.96 (Definitions), Chapter 17.76 (Miscellaneous Permits and Standards, Chapter 17.10 (Accessory Dwelling Unit and Junior Accessory Dwelling Unit Development Standards) and other code sections as applicable of Title 17 of the Rancho Palos Verdes Municipal Code to adopt the zoning and code amendments that were adopted in Urgency Ordinance No. 678U by regular ordinance. On May 6, 2024, City Staff met with HCD Staff regarding the implementation measures for the City Council-adopted Revised Final Housing Element and provided additional clarifications regarding adopted code amendments, which generally focused on updated language for the Amendments to Title 17 (Zoning) to include a minimum density for MUOD projects and a minimum percentage of affordable to lower income households in order to clarify which projects are eligible for ministerial approval. City Staff also updated the adopted code amendments to incorporate HCD Staff’s comments. Furthermore, additional revisions were made to the previously approved ADU and JADU Code Amendment based on a review by the City Attorney’s Office that additional updates were needed to the City’s local development standards. These clarifications were considered by the Planning Commission at its May 14, 2024 meeting and its recommendations are presented to the City Council this evening for adoption. If deemed acceptable, the City Council is being asked to adopt the attached Urgency Ordinance (Attachment A), effectuating additional Housing Element changes to the Zoning Code (Title 17) immediately, and introducing an ordinance (Attachment B), through the regular code amendment process, effectuating the additional Housing Element amendments to the Zoning Code for second reading and adoption at the June 18, 2024 City Council meeting. DISCUSSION: A summary of the proposed clarification amendments effectuating the Final Revised Housing Element are outlined below: 6 ADU and JADU Code Amendments: • Updated to include additional definitions and clarifications related to parking, ownership, and state exemptions in order to conform to State Housing Law. Amendments to Title 17 (Zoning) of the City of Rancho Palos Verdes Municipal Code: Regulations for the Mixed-Use Overlay and Residential Overlay Districts: • Revise Section 17.47.030 A, as follows: “Ministerial Approval. MUOD projects for owner-occupied and rental multifamily residential uses where at least 20 percent of the units are affordable to lower income households as that term is defined by Government Code 65589.5 as it may be amended from time to time, are eligible for ministerial approval. Projects that meet that affordability requirement, comply with the provisions of this chapter, and do not require any of the approvals set forth in Subsection B, shall be approved ministerially a nd are not subject to a conditional use permit, planned unit development permit, or other discretionary local government review or approval. The Director shall approve an administrative permit to construct and operate a MUOD project under this chapter if the application complies with the provisions of this chapter. MUOD projects that do not meet the 20 percent affordability requirement must fo llow the conditional use permit application and approval process.” • Revise Section 17.48.030 A, as follows: “Ministerial Approval. ROD projects for owner-occupied and rental multifamily residential uses where at least 20 percent of the units are affordable to lower income households, as defined by Government Code 65589.5, as may be amended from time to time, are eligible for ministerial approval. Projects that meet that affordability requirement, comply with the provisions of this chapter and do not require any of the approvals set forth in Subsection B, shall be approved ministerially and are not subject to a conditional use permit, planned unit development permit, or other discretionary local government review or approval. The Director shall approve an administrative permit to construct and operate a ROD project under this chapter if the application complies with the provisions of this chapter. ROD projects that do not meet the 20 percent affordability requirement must follow the conditional use permit application and approval process.” On May 14, 2024, the Planning Commission considered making recommendations to the City Council regarding the code amendments required to effectuate the City’s Revised Final 2021-2029 Housing Element by regular ordinance. The code amendments presented to the Planning Commission included proposed clarifications requested by HCD Staff and the City Attorney’s updates to the ADU and JADU Code Amendment. The Planning Commission’s adopted, by a vote of 6-1 (Commissioner Nulman dissenting) P.C. Resolution No. 2024-15 making the following recommendations to the City Council: • Determining the project approvals described below were adequately assessed in the Negative Declaration adopted on August 11, 2022, and Addendum No. 1 7 included in the adoption of the Housing Element on April 16, 2024, and pursuant to CEQA Guidelines 15162 and 15164, no major revisions are required to the Negative Declaration and no subsequent EIR or negative declaration is required; and • Revising the zoning designation of Accessor Parcel No. 7573-006-024 (Clipper lot) and Accessor Parcel No. 7578-002-011 (Montemalaga Drive & Lightfoot Place lot) from Residential Single Family (RS-4) and Residential Single Family (RS-A-5), respectively, to Residential Multiple Family (RM-22) for consistency with the Revised Final 2021-2029 Housing Element adopted on April 16, 2024; and • Approving the following amendments to Title 17 of the Rancho Palos Verdes Municipal Code: o Chater 17.40 (Overlay Control Districts), Chapter 17.96 (Definitions), Chapter 17.76 (Miscellaneous Permits and Standards) and other code sections as applicable – regulations and definitions for the Mixed-Use Overlay and Residential Overlay Districts for consistency with the Revised Final 2021-2029 Housing Element adopted on April 16, 2024; and o Chapter 17.10 (Accessory Dwelling Unit and Junior Accessory Dwelling Unit Development Standards) – updated development standards for ADUs and JADUs units for consistency with the Revised Final 2021-2029 Housing Element adopted on April 16, 2024, and to comply with State Housing Law. The information that was presented to the Planning Commission is included in the staff report. The staff presentation is available for reference and a recording of the meeting can be viewed on the City website. On May 17, 2024, HCD Staff requested additional non-substantive clarifications to the Zoning Code Amendments. The additional Code Amendment clarifications have been incorporated into draft Ordinances outlined below: • Update RPVMC Section 17.48.040(A) to provide a minimum density for the Salvation Army Site No. 4 (APN:7573-002-014) to include a minimum number of units for the site that is equivalent to 20/du/acre, to help clarify which housing projects are subject to ministerial approval. • Identifying the properties that are being rezoned and to what density. The table is included as Exhibit U-D. • Revise language in the MUOD (RPVMC 17.47.030) and ROD (RPVMC 17.48.030) overlay district development standards to include the applicable Health and Safety Code section included in italics below, “as determined by Government Code Section 65589.5 and defined by Health and Safety Code 50079.5.” Urgency Ordinance This project is being proposed as an Urgency Ordinance to immediately implement the Zoning Code clarifications requested by HCD. 8 Environmental Assessment Staff received public correspondence which was included in the Planning Commission staff report dated May 14, 2024. The correspondence expressed concerns regarding potential impacts related to aesthetics, air quality, changed circumstances, geology and transportation The City’s environmental consultant, Environmental Science Associates (ESA) has prepared a response (Attachment D) to address the concerns outlined in the public correspondence. As outlined in the Background section of this report, on August 11, 2022, the City Council adopted Resolution No. 2022-49, adopting the City’s 6th Cycle Housing Element (State Clearinghouse #2022010162) and associated environmental review, which included a Negative Declaration (ND) pursuant to the CEQA. The adopted ND evaluated the potential environmental impacts associated with adoption of the City’s 6th Cycle Housing Element and it determined that no significant environmental impacts would occur as the Housing Element is a policy document that provides the framework to accommodate and support the construction of new housing units. Pursuant to CEQA Guidelines, section 15164, Staff has prepared an addendum to the previously adopted ND, identified as Addendum No. 1. The purpose of Addendum No. 1 (Exhibit U-A) to the previously prepared ND is to revise the original ND’s project description to reflect the HCD requested modifications to the Housing Element the City adopted on August 11, 2022 and evaluate the potential environmental effects that could occur as a result of the adoption and implementation of the Draft Revised Final Housing Element. The proposed Addendum No. 1 also analyzes the reasonable foreseeability of significant environmental impacts, which were not previously identified in the adopted ND as it relates to the proposed Housing Program implementation measures outlined in the Draft Revised Final Housing Element including, but not limited to, Zone Changes, General Plan Amendments and related Zoning Code amendments. It has been determined by the analysis in Addendum No. 1, that none of the circumstances set forth in CEQA Guidelines, section 15162 requiring preparation of a subsequent ND, Mitigated Negative Declaration or Environmental Impact Report have occurred. ADDITIONAL INFORMATION: City Councilmember Proximity to Potential Housing Sites There are no City Councilmembers residing between 500 feet or 1,000 feet of a Potential Housing Site identified in the City’s Revised Draft Final Housing Element . No additional conflicts were identified. 9 Public Correspondence On May 16, 2024, a public notice was issued and published in the Palos Verdes Peninsula News providing notification of the City Council’s review and consideration of the adoption of the attached urgency ordinance and the introduction of items to be considered by regular ordinance. In addition to the letters addressed by ESA, Staff received two additional public comments, which are included in public correspondence. Consequences for Non-Compliant Housing Element Local governments have much to lose if they fail to bring their housing elements into compliance with state requirements. With a staff of 25 in its Housing Accountability Unit, HCD is resourced and ready to enforce state mandates on local housing plans and policies. In May 2023, HCD issued a Letter of Inquiry regarding the status of the City’s 6th Cycle Housing Element, which included a discussion of the consequences of not having a Housing Element in compliance with state Housing Element law. The letter highlighted financial and legal ramifications for noncompliance, including possible actions from the California Office of the Attorney General and court-imposed penalties for persistent noncompliance, including financial penalties. Other consequences of noncompliance include the loss of local land use authority to a court appointed agent and ineligibility to receive state funds that require a compliant Housing Element as a prerequisite. The City is also susceptible to “builder’s remedy” projects. The Housing Accountability Act, Gov’t Code § 65589.5, almost completely curtails a city’s ability to condition or deny housing development projects that do not comply with the City’s General Plan and Zoning Code while the city lacks a substantially compliant Housing Element. These projects tend to be exponentially larger than what the zoning allows and often on sites not deemed viable for residential development. Code Numbering During the recent code amendment ordinance preparation, it was discovered that the numbering system of Zoning Code requires an adjustment. This is inconsequential to the substance of the code amendments yet needs to be completed to accommodate the new overlay districts. Therefore, the existing Chapter 17.48 Lots, Setbacks, Open Space Area and Building Height will be changed to Chapter 17.49. The Zoning Code amendments as part of this agenda item will remain the same as previously adopted. Next Steps If deemed acceptable this evening and the City Council adopts the attached urgency ordnance and introduces the regular ordinance, City Staff will present to the City Council for the consideration of the second reading and adoption of the regular ordinances on June 18, 2024. 10 CONCLUSION: Per HCD’s letter dated April 5, 2024, and subsequent correspondence, Staff believes by processing associated housing implementation measures , including proposed Zone Changes, General Plan Amendments, Coastal Specific Plan Amendments and associated code amendments, the City can also ensure certification of the document by HCD. The Housing Element implementation measures will help shape future development along the City’s commercial corridors and key sites throughout the City to provide vibrant and dynamic land use opportunities on the City’s terms today. For the reasons noted above, Staff recommends the City Council adopt the attached urgency ordinance and introduce the regular ordinance effectuating the Final Revised Housing Element. ALTERNATIVES In addition to Staff’s recommendation, the following alternative action is available for the City Council’s consideration: 1) Provide Staff with additional feedback and continue the public hearing to a date certain to allow Staff the opportunity to prepare and present revisions. 11 ORDINANCE NO. ___-U AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES, CALIFORNIA, AMENDING CHAPTER 17.47 (MIXED USE OVERLAY DISTRICT (MUOD)), CHAPTER 17.48 (RESIDENTIAL OVERLAY DISTRICT (ROD)), CHAPTER 17.10 ACCESSORY DWELLING UNIT AND JUNIOR ACCESSORY DWELLING UNIT DEVELOPMENT, AND CHAPTER 17.96 (DEFINITIONS) OF TITLE 17 (ZONING) OF THE RANCHO PALOS VERDES MUNICIPAL CODE, TO EFFECT THE REVISED FINAL 2021-2029 HOUSING ELEMENT WHEREAS, the City of Rancho Palos Verdes is required by State Housing law to update the Housing Element of its General Plan for the next planning period covering 2021-2029 (6th Cycle) to include policies, strategies, and actions to facilitate the construction of new housing and preservation of existing housing to meet the needs of the City’s population during the 6th Cycle period, as well as to accommodate the City’s Regional Housing Needs Assessment (RHNA) allocation for new housing units in various income categories throughout the City; and WHEREAS, on August 24, 2021, the City Council and the Planning Commission conducted a joint-study session as part of an extensive community engagement process, which also included on-line surveying, messaging, stakeholder interviews and workshops to collect public comments on the drafting of the 2021-2029 Housing Element Update; and WHEREAS, on October 12, 2021, the Planning Commission held a duly noticed public hearing to hear public testimony, reviewed and commented on the Draft Housing Element, which was forwarded to the City Council for consideration; and WHEREAS, on October 19, 2021, the City Council held a duly noticed public hearing to hear public testimony and to review and comment on the Draft Housing Element. The City Council directed City staff to make minor modifications and forward the revised Draft Housing Element to the California Department of Housing and Community Development (HCD) for review; and WHEREAS, on November 19, 2021, the Draft Housing Element was transmitted to HCD for review and comment; and WHEREAS, on January 18, 2022, HCD provided written comments to the City on the Draft Housing Element; and A-1 WHEREAS, the Initial Study and Negative Declaration was prepared and distributed for circulation and review from January 13, 2022 through February 14, 2022; and WHEREAS, on May 17, 2022, HCD staff visited the City of Rancho Palos Verdes, which included a tour of the City to better understand site constraints and challenges facing the City in the identification of new housing sites; and WHEREAS, on July 26, 2022, a public notice was published in the Daily Breeze informing the public of the City Council’s consideration to adopt a Negative Declaration and approve a General Plan Amendment for the City’s 2021-2029 Final Draft Housing Element; and WHEREAS, on August 9, 2022, the Planning Commission conducted a public hearing to consider adopting a resolution forwarding recommendations to the City Council to consider adopting a Negative Declaration and approving a General Plan Amendment for the City’s 2021-2029 Final Draft Housing Element; and WHEREAS, after issuing notice pursuant to the requirements of the City's Zoning Code and the State CEQA Guidelines, the City Council of the City of Rancho Palos Verdes held a public hearing on August 11, 2022, at which time all interested parties were given an opportunity to be heard and present evidence; and WHEREAS, the City Council adopted the Negative Declaration and the 2021-2029 Final Draft Housing Element on August 11, 2022 and City staff submitted the documents to HCD; and WHEREAS, on October 14, 2022 HCD issued a letter to the City acknowledging receipt if the 2021-2029 Final Draft Housing Element on August 30, 2022 and reporting the results of HCD’s review, noting that the adopted element addressed many statutory requirements described in HCD’s prior review, but that further revisions were necessary to comply with the State Housing Element Law; and WHEREAS, between October 14, 2022 and September 14, 2023 the City coordinated with HCD through an informal review process to revise the Housing Element for compliance with State Housing Element Law, leading the City to prepare a comprehensive site by site analysis prepared by its consultant Dudek that provides details and justification for each site’s feasibility as a housing site; and WHEREAS, on September 14, 2023 the City submitted for informal review a 20212029 Revised Final Housing Element; and WHEREAS, on November 17, 2023 City staff and HCD staff discussed the revisions and the City explained the comprehensive site by site analysis; and A-2 WHEREAS, on November 30, 2023 HCD confirmed and finalized via email the list of concerns that were discussed on November 17, 2023; and WHEREAS, on December 15, 2023 City staff and HCD staff discussed the City’s responses to the November 30, 2023 list of concerns and HCD had to still review the comprehensive site by site analysis; and WHEREAS, on January 25, 2024 City staff and HCD staff discussed the City’s responses to HCD’s November 30, 2023 list of concerns, and HCD staff recommended the City submit the revised document for formal review; and WHEREAS, on February 7, 2024, following the required posting and noticing period, the City submitted to HCD for formal review the Revised Final 2021-2029 Housing Element dated January 30, 2024, both electronically and hard copy; and WHEREAS, on March 11, 2024 City staff and HCD staff discussed the formal review and HCD verbally provided final revisions to be made; and WHEREAS, on March 14, 2024 City staff submitted the final revisions and HCD staff confirmed that there were no additional comments and provided instructions to post the revisions on the City’s website and email the link to all individuals and organizations that have previously requested notices relating to the City’s housing element for at least 7 days, and then officially submit the revisions as part of the formal review; and WHEREAS, on March 15, 2024 City staff posted the final revisions on the City’s website and emailed the link to all individuals and organizations that had previously requested notices; and WHEREAS, on March 22, 2024, seven days following the posting and emailing of the revised document, City staff submitted the Revised Final 2021-2029 Housing Element as revised March 15, 2024 to HCD staff to complete the formal review; and WHEREAS, to effectuate the Housing Element by implementing zoning revisions that will accommodate the capacity for the housing as proposed in the Housing Element Update to meet the City’s RHNA obligation, City staff prepared amendments to the General Plan Land Use Element, Local Coastal Program (Coastal Specific Plan), Zoning Code, Zoning Map, and Development Standards for Accessory Dwelling Units (ADUs) and Junior Accessory Dwelling Units (JADUs); and WHEREAS, on March 26, 2024, the Planning Commission conducted a duly noticed public hearing to consider adopting a resolution forwarding recommendations to the City Council to consider making a determination the Negative Declaration, as amended by Addendum No. 1, adequately assessed the reasonably foreseeable environmental impacts from the adoption and implementation of the revised Housing Element approving a General Plan Amendment for the City’s Revised Final 2021-2029 Housing Element, a General Plan Amendment for the Land Use Element, a Local Coastal A-3 Plan (Coastal Specific Plan) Amendment, and zoning amendments inclusive of Zoning Map amendments and amendments to the development standards for ADUs and JADUs, to effectuate the Housing Element, including additional recommendations in the resolution for City Council to consider; and WHEREAS, on March 21, 2024 a public notice was published in the Palos Verdes Peninsula News informing the public of a public hearing before the City Council on April 16, 2024, for its consideration to adopt an addendum to the Negative Declaration and approve a General Plan Amendment for the City’s Revised Final 2021-2029 Housing Element, a General Plan Amendment for the Land Use Element, a Local Coastal Plan (Coastal Specific Plan Amendment), and zoning amendments inclusive of Zoning Map amendments and development standards for ADUs and JADUs, to effectuate the Housing Element; and WHEREAS, Addendum No. 1 to the adopted Negative Declaration has been prepared to address revisions to the Housing Element document to reflect HCD requested revisions and evaluate the potential environmental effects that could occur as a result of the revisions and Housing Program implementation measures, including, but not limited to the related General Plan Land Use Element, the Coastal Specific Plan, and the zoning implementing of the Housing Element; and WHEREAS, State Housing Element Law requires that a Housing Element identify adequate sites, and as necessary redesignation of property to a more intense land use category and increasing density, to allow for the capacity of the City’s obligation of the Regional Housing Needs Assessment; and WHEREAS, according to Senate Bill 197 (2022), a 6th Cycle Housing Element adopted after the October 15, 2022 extended deadline will not be found in compliance with State Housing Element Law until all necessary rezones are complete to accommodate the City’s regional housing needs allocation; and WHEREAS, on April 16, 2024 the City Council (1) held a public hearing to consider the recommendations of the Planning Commission, (2) determined the Negative Declaration adopted on August 11, 2022, as amended by Addendum No. 1, adequately analyzed the impacts from the adoption and implementation of the Revise Final 20212029 Housing Element, and approved a General Plan Amendment for the City’s Revised Final 2021-2029 Housing Element, a General Plan Amendment for the Land Use Element and Land Use Map, a Local Coastal Plan (Coastal Specific Plan) Amendment, and zoning amendments inclusive of Zoning Map amendments and development standards for ADUs and JADUs, to effectuate the Housing Element, including rezoning sufficient sites to accommodate the City’s regional housing needs allocation, and (3) initiated code amendment proceedings related to amendments to Chapter 17.40 (Overlay Control Districts), Chapter 17.96 (Definitions, Chapter 17.76 (Miscellaneous Permits and Standards), Chapter 17.10 (Accessory Dwelling Unit and Junior Accessory Dwelling Unit Development Standards) and other code sections as applicable of Title 17 of the Rancho Palos Verdes Municipal Code by regular ordinance; and A-4 WHEREAS, on April 18, 2024 City Staff submitted the documents adopted on April 16, 2024 to HCD for their review for compliance with State Housing Law; and WHEREAS, on May 6, 2024 HCD informed City Staff of recommended nonsubstantive clarifications to the zoning ordinance implementing the 6th Cycle Housing Element; and WHEREAS, on May 14, 2024 the Planning Commission conducted a duly noticed public hearing and adopted PC Resolution No. 2024-15 a resolution recommending that the City Council (1) determine the Housing Element Project was adequately assessed in the previously adopted Negative Declaration and Addendum No. 1 for the 2021-2029 Housing Element and associated housing programs; (2) re-adopt zone changes, zoning map amendments, and code amendments to effectuate the Revised Final 2021-2029 Housing Element as were adopted in Urgency Ordinance No. 678U, with revisions requested by the California Department of Housing and Community Development; and (3) re-adopt updated development standards for Accessory Dwelling Units and Junior Accessory Dwelling Units to comply with the State Housing Law, as were adopted in Urgency Ordinance 678U, with revisions for completeness; and WHEREAS, on May 17, 2024 HCD informed City Staff of final recommended nonsubstantive clarifications to the zoning ordinance implementing the 6th Cycle Housing Element, that have been incorporated into Attachment B; and WHEREAS, the City Council seeks to effectuate the City’s 6th Cycle 2021-2029 Housing Element immediately, to address the City’s obligations to the State’s housing shortage crisis; and WHEREAS, pursuant to Government Code § 36937, subdivision (b), any ordinance for the immediate preservation of the public peace, health, or safety, containing a declaration of the facts constituting the urgency, that is passed by a four-fifths (4/5) vote of the City Council, shall take effect immediately upon its adoption; and WHEREAS, the City Council seeks and intends to protect the health, safety, and welfare of the residents of the City of Rancho Palos Verdes by adopting the implementation actions to effectuate the City’s Revised Final 2021-2029 Housing Element, as further described herein. NOW THEREFORE, the City Council of the City of Rancho Palos Verdes does hereby ordain as follows: Section 1. Recitals. The above recitals are incorporated herein by this reference. Section 2. Urgency Findings. A-5 A. Government Code 65580 states, “[t]he availability of housing is of vital statewide importance, and the early attainment of decent housing and a suitable living environment for every Californian, including farmworkers, is a priority of the highest order.” California is experiencing a housing supply crisis, with housing demand far outstripping supply. In 2018, California ranked 49th out of the 50 states in housing per capita. This lack of housing supply in California has led to dramatically increasing housing costs across the State. B. Home prices in the City of Rancho Palos Verde are significantly higher than those in most surrounding communities, with the average home value as of February 2024 for the single family homes listed was $1,909,216, according to Zillow Research Data. As of April 9, 2024, only 49 properties were listed for rent in the City on Zillow, with 21 of those being apartments and townhomes ranging in rent from $1,750/month to $5,750/month. Single-family homes (28 properties) were being offered for rent from between $4,350/month and $18,000/month. In addition, land, environmental, and infrastructure constraints combine to keep land prices high, and housing growth has not occurred aside from the construction of accessory dwelling units on single-family parcels. C. Providing for a diverse range of housing types is an important consideration in a community. A diverse range of housing types helps ensure that all households in a community, regardless of income level, size, age, and family type, have the ability to find adequate housing that meets their needs. D. According to the California Department of Finance E-5 Report, 2021, the City’s housing unit vacancy rate in 2020 was 4.8%, where the vacancy rate in Los Angeles County was 6.4% and in the Southern California Association of Governments (SCAG) Region it was 7.6%, indicate housing choice is very limited in Rancho Palos Verdes. E. The City has some of the region’s highest single-family housing prices. According to SCAG data, between 2000 and 2018, median home sales prices in Rancho Palos Verdes increased 127% while prices in the SCAG region increased 151%, but the City’s median home sales price was still much higher than for the region overall in 2018, at $1,250,000, versus only $560,977 for the SCAG region. Prices in Rancho Palos Verdes have ranged from a low of 176.7% of the SCAG region median in 2007 and a high of 285.2% in 2009. F. According to the ACS, the median monthly contract rent for the 2014 through 2018 period3 was $1,288 for the region, and nearly twice that in Rancho Palos Verdes at $2,505. Only 49 properties, 28 of which are homes) are available for rent as of April 2024 according to Zillow. G. Extremely low, very low, low, and moderate income households cannot afford market-rate rental or ownership housing in Rancho Palos Verdes without assuming a significant cost burden. A-6 H. The increases in rents caused by the limited supply of rental housing force families to pay a disproportionate amount of household income on rent, creating strain on household finances. If households are forced to move out of the area because of increased rents, this can lead to loss of community, stress and anxiety for those forced to relocate, increased commute times and traffic impacts if displaced workers cannot find affordable housing within the City, and interruption of the education of children in the home. I. A lack of affordable rental housing supply and increasing rents additionally increase the risk that more households will become homeless and prevent homeless individuals and families from escaping homelessness. J. When people have access to safe and affordable housing, they have more money for food and health care, are less likely to become homeless and in need of government subsidized services, their children do better in school, and businesses have an easier time recruiting and retaining employees. K. Government Code Section 65589.5 states that the Legislature finds and declares all of the following: (1) The lack of housing, including emergency shelters, is a critical problem that threatens the economic, environmental, and social quality of life in California. (2) California housing has become the most expensive in the nation. The excessive cost of the state’s housing supply is partially caused by activities and policies of many local governments that limit the approval of housing, increase the cost of land for housing, and require that high fees and exactions be paid by producers of housing. (3) Among the consequences of those actions are discrimination against low income and minority households, lack of housing to support employment growth, imbalance in jobs and housing, reduced mobility, urban sprawl, excessive commuting, and air quality deterioration. (4) Many local governments do not give adequate attention to the economic, environmental, and social costs of decisions that result in disapproval of housing development projects, reduction in density of housing projects, and excessive standards for housing development projects. L. In order to help facilitate the development of sufficient housing to alleviate the regional and statewide housing crisis, the City is required to provide sufficient land in its General Plan and Zoning Code to provide the City’s fair share of housing to meet the needs of the Southern California region. The City’s fair share is developed through the Regional Housing Need Allocation (RHNA) process conducted by the Southern California Association of Governments, which has determined in the City will have to provide sufficient land in its General Plan and Zoning for 647 new housing units in the City in its Housing Element for 2021-2029. A substantially compliant Housing Element that provides for housing capacity to meet the City’s RHNA obligation contributes to addressing the housing shortage in the State of California. A-7 M. In order for the Housing Element to be certified in compliance with the State Housing Element Law, the Zoning Ordinance amendments, including the revision to the Zoning Map and development standards for Accessory Dwelling Units (ADUs) and Junior Accessory Dwelling Units (JADUs), must be adopted in order to effectuate the Housing Element. N. Adopting the urgency ordinance allows the Zoning Ordinance amendments, including the revision to the Zoning Map and development standards for ADUs and JADUs, to be effective immediately, thereby eliminating the constraints to housing identified in the Housing Element. Section 3. The City Council finds that the Revised Final 2021-2029 Housing Element adopted on April 16, 2024, in conjunction with the revisions to the Zoning Code adopted that day, was substantially compliant with the State Housing Element Law as of the date of its adoption, and that the subsequent clarifications requested by HCD to the Zoning Code updates do not constitute substantive revisions and are not required for substantial compliance. Section 4.CEQA Compliance. Based on its independent judgment, after consideration of the whole of the administrative record, the City Council determines the project was adequately assessed in the Negative Declaration adopted on August 11, 2022; and pursuant to CEQA Guidelines 15162 and 15164, and Addendum No. 1 attached as Attachment A, the City Council finds no major revisions are required to the Negative Declaration and no subsequent EIR or negative declaration is required for approval of the project. Section 5. Amendment to the Code. Title 17 (Zoning) of the Rancho Palos Verdes Municipal Code is hereby amended to include the development standards for the MUOD and ROD overlay districts, amendments to definitions, and amendments to the ADU and JADU regulations as included as Attachment B. Section 6. Zoning Map Amendment. The Rancho Palos Verdes Zoning Map is hereby amended to include the MUOD and ROD overlay districts and to revise certain parcels to Residential Multiple m-22 as listed in the Housing Element and listed in Attachment B. Amended Zoning Map is included as Attachment C. A listing of the sites where zoning is changing is included as Attachment D Section 7. Severability. If any provision(s) of this Ordinance or the application thereof to any person or circumstances is held invalid or unconstitutional by any court of competent jurisdiction, such invalidity or unconstitutionality shall not affect any other provision or application, and to this end the provisions of this ordinance are declared to be severable. The City Council hereby declares that they would have adopted this ordinance and each section, subsection, sentence, clause, phrase, part or portion thereof, irrespective of the fact that any one or more sections, subsections, clauses, phrases, parts or portions thereof be declared invalid or unconstitutional. A-8 Section 8. Posting. The City Clerk shall certify the passage and adoption of this Ordinance by the City Council and shall cause this ordinance to be published or posted in accordance with Government Code section 36933 as required by law. Section 9. Effective Date. Pursuant to Government Code section 36937, this Urgency Ordinance shall take effective immediately upon approval of the same by a four fifths (4/5) affirmative vote of the City Council. PASSED, APPROVED and ADOPTED by a 4/5th vote of the entire City Council this 4th day of June, 2024. John Cruikshank, Mayor Attest: Teresa Takaoka, City Clerk STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES )ss CITY OF RANCHO PALOS VERDES ) I, Teresa Takaoka, City Clerk of the City of Rancho Palos Verdes, do hereby certify that the above Urgency Ordinance No. ___U, was duly adopted by the City Council of said City at a regular meeting thereof held on June 4, 2024. AYES: NOES: ABSENT: ABSTAIN: Teresa Takaoka, City Clerk A-9 ORDINANCE NO. ___ AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES, CALIFORNIA, AMENDING CHAPTER 17.47 (MIXED USE OVERLAY DISTRICT (MUOD)), CHAPTER 17.48 (RESIDENTIAL OVERLAY DISTRICT (ROD)), CHAPTER 17.10 ACCESSORY DWELLING UNIT AND JUNIOR ACCESSORY DWELLING UNIT DEVELOPMENT, AND CHAPTER 17.96 (DEFINITIONS) OF TITLE 17 (ZONING) OF THE RANCHO PALOS VERDES MUNICIPAL CODE, TO EFFECT THE REVISED FINAL 2021-2029 HOUSING ELEMENT WHEREAS, the City of Rancho Palos Verdes is required by State Housing law to update the Housing Element of its General Plan for the next planning period covering 2021-2029 (6th Cycle) to include policies, strategies, and actions to facilitate the construction of new housing and preservation of existing housing to meet the needs of the City’s population during the 6th Cycle period, as well as to accommodate the City’s Regional Housing Needs Assessment (RHNA) allocation for new housing units in various income categories throughout the City; and WHEREAS, on August 24, 2021, the City Council and the Planning Commission conducted a joint-study session as part of an extensive community engagement process, which also included on-line surveying, messaging, stakeholder interviews and workshops to collect public comments on the drafting of the 2021-2029 Housing Element Update; and WHEREAS, on October 12, 2021, the Planning Commission held a duly noticed public hearing to hear public testimony, reviewed and commented on the Draft Housing Element, which was forwarded to the City Council for consideration; and WHEREAS, on October 19, 2021, the City Council held a duly noticed public hearing to hear public testimony and to review and comment on the Draft Housing Element. The City Council directed City staff to make minor modifications and forward the revised Draft Housing Element to the California Department of Housing and Community Development (HCD) for review; and WHEREAS, on November 19, 2021, the Draft Housing Element was transmitted to HCD for review and comment; and WHEREAS, on January 18, 2022, HCD provided written comments to the City on the Draft Housing Element; and WHEREAS, the Initial Study and Negative Declaration was prepared and distributed for circulation and review from January 13, 2022 through February 14, 2022; and B-1 WHEREAS, on May 17, 2022, HCD staff visited the City of Rancho Palos Verdes, which included a tour of the City to better understand site constraints and challenges facing the City in the identification of new housing sites; and WHEREAS, on July 26, 2022, a public notice was published in the Daily Breeze informing the public of the City Council’s consideration to adopt a Negative Declaration and approve a General Plan Amendment for the City’s 2021-2029 Final Draft Housing Element; and WHEREAS, on August 9, 2022, the Planning Commission conducted a public hearing to consider adopting a resolution forwarding recommendations to the City Council to consider adopting a Negative Declaration and approving a General Plan Amendment for the City’s 2021-2029 Final Draft Housing Element; and WHEREAS, after issuing notice pursuant to the requirements of the City's Zoning Code and the State CEQA Guidelines, the City Council of the City of Rancho Palos Verdes held a public hearing on August 11, 2022, at which time all interested parties were given an opportunity to be heard and present evidence; and WHEREAS, the City Council adopted the Negative Declaration and the 2021-2029 Final Draft Housing Element on August 11, 2022 and City staff submitted the documents to HCD; and WHEREAS, on October 14, 2022 HCD issued a letter to the City acknowledging receipt if the 2021-2029 Final Draft Housing Element on August 30, 2022 and reporting the results of HCD’s review, noting that the adopted element addressed many statutory requirements described in HCD’s prior review, but that further revisions were necessary to comply with the State Housing Element Law; and WHEREAS, between October 14, 2022 and September 14, 2023 the City coordinated with HCD through an informal review process to revise the Housing Element for compliance with State Housing Element Law, leading the City to prepare a comprehensive site by site analysis prepared by its consultant Dudek that provides details and justification for each site’s feasibility as a housing site; and WHEREAS, on September 14, 2023 the City submitted for informal review a 20212029 Revised Final Housing Element; and WHEREAS, on November 17, 2023 City staff and HCD staff discussed the revisions and the City explained the comprehensive site by site analysis; and WHEREAS, on November 30, 2023 HCD confirmed and finalized via email the list of concerns that were discussed on November 17, 2023; and B-2 WHEREAS, on December 15, 2023 City staff and HCD staff discussed the City’s responses to the November 30, 2023 list of concerns and HCD had to still review the comprehensive site by site analysis; and WHEREAS, on January 25, 2024 City staff and HCD staff discussed the City’s responses to HCD’s November 30, 2023 list of concerns, and HCD staff recommended the City submit the revised document for formal review; and WHEREAS, on February 7, 2024, following the required posting and noticing period, the City submitted to HCD for formal review the Revised Final 2021-2029 Housing Element dated January 30, 2024, both electronically and hard copy; and WHEREAS, on March 11, 2024 City staff and HCD staff discussed the formal review and HCD verbally provided final revisions to be made; and WHEREAS, on March 14, 2024 City staff submitted the final revisions and HCD staff confirmed that there were no additional comments and provided instructions to post the revisions on the City’s website and email the link to all individuals and organizations that have previously requested notices relating to the City’s housing element for at least 7 days, and then officially submit the revisions as part of the formal review; and WHEREAS, on March 15, 2024 City staff posted the final revisions on the City’s website and emailed the link to all individuals and organizations that had previously requested notices; and WHEREAS, on March 22, 2024, seven days following the posting and emailing of the revised document, City staff submitted the Revised Final 2021-2029 Housing Element as revised March 15, 2024 to HCD staff to complete the formal review; and WHEREAS, to effectuate the Housing Element by implementing zoning revisions that will accommodate the capacity for the housing as proposed in the Housing Element Update to meet the City’s RHNA obligation, City staff prepared amendments to the General Plan Land Use Element, Local Coastal Program (Coastal Specific Plan), Zoning Code, Zoning Map, and Development Standards for Accessory Dwelling Units (ADUs) and Junior Accessory Dwelling Units (JADUs); and WHEREAS, on March 26, 2024, the Planning Commission conducted a duly noticed public hearing to consider adopting a resolution forwarding recommendations to the City Council to consider making a determination the Negative Declaration, as amended by Addendum No. 1, adequately assessed the reasonably foreseeable environmental impacts from the adoption and implementation of the revised Housing Element approving a General Plan Amendment for the City’s Revised Final 2021-2029 Housing Element, a General Plan Amendment for the Land Use Element, a Local Coastal Plan (Coastal Specific Plan) Amendment, and zoning amendments inclusive of Zoning Map amendments and amendments to the development standards for ADUs and JADUs, B-3 to effectuate the Housing Element, including additional recommendations in the resolution for City Council to consider; and WHEREAS, on March 21, 2024 a public notice was published in the Palos Verdes Peninsula News informing the public of a public hearing before the City Council on April 16, 2024, for its consideration to adopt an addendum to the Negative Declaration and approve a General Plan Amendment for the City’s Revised Final 2021-2029 Housing Element, a General Plan Amendment for the Land Use Element, a Local Coastal Plan (Coastal Specific Plan Amendment), and zoning amendments inclusive of Zoning Map amendments and development standards for ADUs and JADUs, to effectuate the Housing Element; and WHEREAS, Addendum No. 1 to the adopted Negative Declaration has been prepared to address revisions to the Housing Element document to reflect HCD requested revisions and evaluate the potential environmental effects that could occur as a result of the revisions and Housing Program implementation measures, including, but not limited to the related General Plan Land Use Element, the Coastal Specific Plan, and the zoning implementing of the Housing Element; and WHEREAS, State Housing Element Law requires that a Housing Element identify adequate sites, and as necessary redesignation of property to a more intense land use category and increasing density, to allow for the capacity of the City’s obligation of the Regional Housing Needs Assessment; and WHEREAS, according to Senate Bill 197 (2022), a 6th Cycle Housing Element adopted after the October 15, 2022 extended deadline will not be found in compliance with State Housing Element Law until all necessary rezones are complete to accommodate the City’s regional housing needs allocation; and WHEREAS, on April 16, 2024 the City Council (1) held a public hearing to consider the recommendations of the Planning Commission, (2) determined the Negative Declaration adopted on August 11, 2022, as amended by Addendum No. 1, adequately analyzed the impacts from the adoption and implementation of the Revise Final 20212029 Housing Element, and approved a General Plan Amendment for the City’s Revised Final 2021-2029 Housing Element, a General Plan Amendment for the Land Use Element and Land Use Map, a Local Coastal Plan (Coastal Specific Plan) Amendment, and zoning amendments inclusive of Zoning Map amendments and development standards for ADUs and JADUs, to effectuate the Housing Element, including rezoning sufficient sites to accommodate the City’s regional housing needs allocation, and (3) initiated code amendment proceedings related to amendments to Chapter 17.40 (Overlay Control Districts), Chapter 17.96 (Definitions, Chapter 17.76 (Miscellaneous Permits and Standards), Chapter 17.10 (Accessory Dwelling Unit and Junior Accessory Dwelling Unit Development Standards) and other code sections as applicable of Title 17 of the Rancho Palos Verdes Municipal Code by regular ordinance; and B-4 WHEREAS, on April 18, 2024 City Staff submitted the documents adopted on April 16, 2024 to HCD for their review for compliance with State Housing Law; and WHEREAS, on May 6, 2024 HCD informed City Staff of recommended nonsubstantive clarifications to the zoning ordinance implementing the 6th Cycle Housing Element; and WHEREAS, on May 14, 2024 the Planning Commission conducted a duly noticed public hearing and adopted PC Resolution No. 2024-15 a resolution recommending that the City Council (1) determine the Housing Element Project was adequately assessed in the previously adopted Negative Declaration and Addendum No. 1 for the 2021-2029 Housing Element and associated housing programs; (2) re-adopt zone changes, zoning map amendments, and code amendments to effectuate the Revised Final 2021-2029 Housing Element as were adopted in Urgency Ordinance No. 678U, with revisions requested by the California Department of Housing and Community Development; and (3) re-adopt updated development standards for Accessory Dwelling Units and Junior Accessory Dwelling Units to comply with the State Housing Law, as were adopted in Urgency Ordinance 678U, with revisions for completeness; and WHEREAS, on May 17, 2024 HCD informed City Staff of final recommended nonsubstantive clarifications to the zoning ordinance implementing the 6th Cycle Housing Element, that have been incorporated into Attachment B; and WHEREAS, the City Council seeks to adopt the code amendments to effectuate the City’s 6th Cycle 2021-2029 Housing Element by regular ordinance. NOW THEREFORE, the City Council of the City of Rancho Palos Verdes does hereby ordain as follows: Section 1. Recitals. The above recitals are incorporated herein by this reference. Section 2. The City Council finds that the Revised Final 2021-2029 Housing Element adopted on April 16, 2024, in conjunction with the revisions to the Zoning Code adopted that day, was substantially compliant with the State Housing Element Law as of the date of its adoption, and that the subsequent clarifications requested by HCD to the Zoning Code updates do not constitute substantive revisions and are not required for substantial compliance. Section 3. CEQA Compliance. Based on its independent judgment, after consideration of the whole of the administrative record, the City Council determines the project was adequately assessed in the Negative Declaration adopted on August 11, 2022; and pursuant to CEQA Guidelines 15162 and 15164, and Addendum No. 1 attached as Attachment A, the City Council finds no major revisions are required to the Negative Declaration and no subsequent EIR or negative declaration is required for approval of the project. B-5 Section 4. Amendment to the Code. Title 17 (Zoning) of the Rancho Palos Verdes Municipal Code is hereby amended to include the development standards for the MUOD and ROD overlay districts, amendments to definitions, and amendments to the ADU and JADU regulations as included as Attachment B. Section 5. Zoning Map Amendment. The Rancho Palos Verdes Zoning Map is hereby amended to include the MUOD and ROD overlay districts and to revise certain parcels to Residential Multiple m-22 as listed in the Housing Element and listed in Attachment B. Amended Zoning Map is included as Attachment C. A listing of the sites where zoning is changing is included as Attachment D. Section 6. Severability. If any provision(s) of this Ordinance or the application thereof to any person or circumstances is held invalid or unconstitutional by any court of competent jurisdiction, such invalidity or unconstitutionality shall not affect any other provision or application, and to this end the provisions of this ordinance are declared to be severable. The City Council hereby declares that they would have adopted this ordinance and each section, subsection, sentence, clause, phrase, part or portion thereof, irrespective of the fact that any one or more sections, subsections, clauses, phrases, parts or portions thereof be declared invalid or unconstitutional. Section 7. Posting. The City Clerk shall certify the passage and adoption of this Ordinance by the City Council and shall cause this ordinance to be published or posted in accordance with Government Code section 36933 as required by law. Section 8. Effective Date. This Ordinance shall go into effect at 12:01 AM on the 31st day after its passage. PASSED, APPROVED and ADOPTED at a regular meeting of the City Council of the City of Rancho Palos Verdes, California on this 18th day of June, 2024. John Cruikshank, Mayor Attest: Teresa Takaoka, City Clerk STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES )ss CITY OF RANCHO PALOS VERDES ) B-6 I, Teresa Takaoka, City Clerk of the City of Rancho Palos Verdes, do hereby certify that the whoe number of members of the City Council of said City is five; that the foregoing Ordinance No. was introduced by the City Council of said City at a regular meeting thereof held on June 4, 2024, was duly and regularly adopted by the City Council of said City at a regular meeting thereof held on June 18, 2024, and that the same was passed and adopted by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: Teresa Takaoka, City Clerk B-7