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CC SR 20240618 F - Housing Element CITY COUNCIL MEETING DATE: 06/18/2024 AGENDA REPORT AGENDA HEADING: Consent Calendar AGENDA TITLE: Consideration and possible action to adopt Ordinance No. 681 to amend Title 17 of the Rancho Palos Verdes Municipal Code to effectuate the City’s Revised Final 2021-2029 Housing Element (Case Nos. PLGP2022-0001, PLGP2024-001, PLZC2024-001, PLCA2024-001 & PLCA 2024-002). RECOMMENDED COUNCIL ACTION: (1) Adopt Ordinance No. 681, 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 (CASE NOS. Case Nos. PLGP2022-0001, PLGP2024-001, PLZC2024-001, PLCA2024-001 & PLCA 2024- 002). 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 ATTACHED SUPPORTING DOCUMENTS: A. Ordinance No. 681(page A-1) • Exhibit “A”- Addendum No. 1 to the Negative Declaration for the 2021 -2029 1 Housing Element and associated Housing Programs • Exhibit “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 “C” - and Revised Zoning Map • Exhibit “D” - List of Properties to be rezoned The previous Staff Report on this topic can be found on the City’s website via the June 4, 2024 City Council Agenda at: https://rpv.granicus.com/MetaViewer.php?view_id=5&clip_id=4549&meta_id=119630 BACKGROUND & DISCUSSION: On June 4, 2024, Ordinance No. 681(Attachment A) was introduced by the City Council. This Ordinance amends Title 17 (Zoning) of the Rancho Palos Verdes Municipal Code (RPVMC) in order to effectuate the Revised Final 2021-2029 Housing Element. This evening, Ordinance No. 681 is presented for its second reading and adoption. If adopted at the June 18, 2024 meeting, this Ordinance will go into effect on July 19, 2024, however, Urgency Ordinance No. 680U will remain in effect. Urgency Ordinance No. 680U, amended Title 17 (Zoning) to effectuate the Revised Final 2021 -2029 Housing Element, inclusive of the non-substantive clarifications to the Zoning Amendments as requested by the Department of Housing and Community Development (HCD). ADDITIONAL INFORMATION: Next Steps If deemed acceptable this evening and the City Council adopts Ordinance No. 681, City staff will submit the Ordinance to HCD for their documentation related to the City’s Revised Final 2021-2029 Housing Element. ALTERNATIVES: In addition to the Staff’s recommendation, the following alternative action is available for the City Council’s consideration. 1. Direct Staff to revise Ordinance No. 681 for re-introduction and/or second reading at a future City Council meeting. 2 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 A-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 A-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, A-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 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 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. A-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 ) A-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 A-7