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CC SR 20240903 03 - Housing Element SR_final CITY COUNCIL MEETING DATE: 09/03/2024 AGENDA REPORT AGENDA HEADING: Regular Business AGENDA TITLE: Consideration and possible action to evaluate the Housing Sites Inventory of the City Council-Adopted 2021-2029 Housing Element. RECOMMENDED COUNCIL ACTION: (1) Evaluate Staff’s assessment of the Housing Sites Inventory of the City Council- Adopted 2021-2029 Housing Element that could be removed from the inventory list while still remaining in compliance with State Housing Laws and provide Staff with further direction. 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. However, any direction from the City Council on revising the Housing Element and implementation documents may incur additional contract scope of work costs for professional service agreements. Amount Budgeted: N/A Additional Appropriation: N/A Account Number(s): N/A ORIGINATED BY: Jessica Bobbett, Senior Planner REVIEWED BY: Brandy Forbes, AICP, Director of Community Development APPROVED BY: Ara Mihranian, AICP, City Manager ATTACHED SUPPORTING DOCUMENTS: None – see links embedded in the agenda report BACKGROUND: On April 16, 2024, the City Council 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 1 RANCHO PALOS VERDES 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 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 (RHNA) 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 June 4, 2024, City Council adopted Urgency Ordinance No. 680U which amended Title 17 (Zoning) to effectuate the Revised Final 2021 -2029 Housing Element, incorporating non-substantive revisions that were recommended by the California Department of Housing and Community Development (HCD). The City Council also introduced Ordinance No. 681, which would amended Title 17 (Zoning) to effectuate the Revised Final 2021-2029 Housing Element by regular ordinance. On June 18, 2024, as part of the second reading of Ordinance No. 681, at the request of Mayor Pro Tem Alegria and Councilmember Bradley, the City Council directed Staff to come back at a future meeting date with an evaluation of properties that could be removed from the Housing Sites Inventory while still remaining in compliance with State Housing Laws. The City Council directed Staff to assess the Clipper Dr. property (Site No. 16 of the Housing Sites Inventory), but not exclusively that site. This directive was in response to a statement made by HCD’s Analyst Fidel Herrera that the City exceeded its RHNA. DISCUSSION: “Table No. 36: Housing Sites Inventory” of the City’s Housing Element identifies 31 properties throughout the City that are available and suitable for residential development to accommodate the City’s RHNA during the 6 th Cyle planning period (2021-2029). 2 Properties on the Housing Sites Inventory include both developed and undeveloped sites along the City’s commercial corridors and arterial streets. The ‘Housing Sites Inventory’ Section on page 189 of the City’s Housing Element provides a comprehensive discussion on the factors considered in the development of Housing Sites Inventory and the coordination with HCD in their review of the City’s inventory listing. The key criteria for the properties that were incorporated into the Housing Sites Inventory were: • Physical Development Feasibility • Within State-Recognized Opportunity Areas • Outside of Local Hazard Zones • Adjacency to Amenities As directed by the City Council, Staff evaluated all the properties listed in “Table No. 36: Housing Sites Inventory” of the City’s Housing Element to determine which sites may be removed. Table No. 1 below identifies ten properties that could be considered for removal based on the minimal number of units (15 of fewer) that are expected to be developed on each site and their designation as ‘above-moderate’ income level units (category of affordability where City exceeds the RHNA obligation). Table No. 1 – Potential Sites to be removed from the Housing Element Sites Inventory Site # Address/APN Vacant Y/N? % of Site Developable Zoning Designation Above Moderate Inc. Comments 2 28041 Hawthorne Blvd No 100% Commercial MUOD 9 units 12 27580 Silver Spur No 100% Commercial MUOD 14 units Adjacent to Site #11 for possible consolidation 13 7586-028-007 (Behind 430 Silver Spur) Yes 30% Commercial MUOD 4 units Adjacent to Sites #7 #8 #14, which are adjacent to #9, for possible consolidation 16 7573-006-024 (Southeast of Clipper Road and PVDS) Yes 50% Residential RM-22 14 units 18 7564-024-001 (West of UCLA South Bay Site) Yes 90% Institutional ROD 10 units Adjacent to UCLA South Bay 19 30800 Palos Verdes Drive East No 60% Institutional ROD 6 units Adjacent to UCLA South Bay 3 Site # Address/APN Vacant Y/N? % of Site Developable Zoning Designation Above Moderate Inc. Comments 26 29519 S. Western Yes 70% Commercial MUOD 1 unit Adjacent to Site #25 and #27 for possible consolidation 29 7557-039-017 (North of 29601 S. Western Ave) Yes 70% Commercial MUOD 9 units Same property owner as adjacent Site #28 for consolidation purposes 30 29619 S. Western Ave No 70% Commercial MUOD 8 units Adjacent to existing multifamily development on S. Western 31 29701 S. Western Ave No 100% Commercial MUOD 10 units Across the street from existing multifamily development on S. Western As demonstrated in the analysis above, each of the identified sites has beneficial aspects for why it was included in the Sites Inventory Analysis, including the following: • vacant site • high percentage of the site is developable • site is adjacent to another site on the inventory or another site that has multifamily housing that would encourage lot consolidation and further the developability of the site For those sites that are adjacent to another site where lot consolidation is likely, Staff recommends maintaining those sites in the Housing Sites Inventory to continue the viability of developability of both those sites and the sites they adjoin. That then reduces the sites for consideration to Sites # 2 and #16. Site #2 is almost an acre is size, and it is expected that 100% of it is developable. The remaining site to consider is Site #16 (Clipper Road Lot). As part of HCD’s review of the City’s 2021-2029 Housing Element, which includes “Table No. 36: Housing Sites Inventory,” HCD Staff informed City Staff that the removal of the Clipper Dr. property (Site # 16) from the inventory listing would not impact the City’s ability to meet its RHNA obligation. The Clipper Dr. property is a vacant site, where removing the site would reduce the percentage of vacant property available for housing. However, this site has constraints with drainage, layout, and open space requirements, where only 50% of the site is expected to be developable. Additionally, this is the only site in the City’s Coastal Zone and is located further away from commercial areas than most other sites in the inventory. 4 Next Steps: Although HCD has determined that the City would still be able to meet its RHNA obligation if the Clipper Dr. property (Site # 16) was removed from the Housing Sites Inventory, it is uncertain whether HCD would determine that the Housing Element would continue to comply with all State Housing Laws. The process to determine such, while still maintaining the current Housing Element that is in compliance with State Housing Laws, would be as follows: • City Council would direct Staff to prepare a draft amended Housing Element to remove a specific site(s). • Staff would prepare a draft amended Housing Element to remove specific site (s) and revise any aggregate narrative or descriptions. • Staff would submit the draft amended Housing Element to HCD for formal review to determine if the removal of the specific site(s) would still allow the Housing Element to be in compliance with State Housing Laws. • Receive HCD’s determination. If approved, take the following additional steps: o Prepare revised General Plan, Local Coastal Plan, and Zoning revisions to reflect the removal of specific site(s) (returning them to prior classifications and zoning), and environmental analysis of the revisions. o Notice public hearing to property owners within a 500’ radius of the subject property for Planning Commission to consider amendments to Housing Element and related documents. o Planning Commission to hold public hearing and adopt resolution with recommendations on draft amended Housing Element and environmental analysis. o Notice public hearing to property owners within a 500’ radius of the subject property for City Council to consider amendments to Housing element and related documents, adopt amended Housing Element, General Plan amendments, and Local Coastal Plan amendments and to consider introduction of zoning returning site(s) to prior classifications, and environmental analysis. o City Council to consider second reading and adoption of zoning returning site(s) to prior classifications. Staff anticipates that this process would take approximately 6 to 8 months, depending on the timeliness of HCD’s response. 5 CONCLUSION: Based on the analysis, Staff recommends that the City Council evaluate Staff’s assessment of properties that could be removed from the Housing Sites Inventory of the City’s 2021-2029 Housing Element and provide Staff with further direction. ADDITIONAL INFORMATION: Public Correspondence To date, Staff has not received any public correspondence for this item. ALTERNATIVES: In addition to the Staff’s recommendation, the following alternative action is available for the City Council’s consideration. 1. Take no action and proceed to receive and file this report. 2. Take other action, as deemed appropriate. 6