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CC SR 20250603 01 - Housing Element Revision Clipper and UCLA PUBLIC HEARING Date: June 3, 2025 Subject: Consideration to revise the City Council-adopted Housing Element to remove Site Nos. 16, 18, and 19 from the Housing Sites Inventory. Recommendation: (1) Review the California Department of Housing and Community Development’s (HCD) formal review letter of the proposed draft revisions to the City Council-adopted 2021-2029 Housing Element to remove Site Nos. 16, 18, and 19 from the Housing Sites Inventory; (2) Review the potential zoning build-out scenarios for Site Nos. 16, 18, and 19 if: a. Restoring the sites’ original designation; or b. Retaining the current Housing Element’s designation, (3) Based on HCD’s letter and the zoning build-out scenarios determine whether to retain the existing Housing Element zoning adopted by the City Council on April 16, 2024 by Resolution No. 2024-16 or to restore the original zoning designation by initiating the public hearing proceedings to consider adopting the draft revised 2021 -2029 Housing Element by removing Site Nos. 16, 18, and 19 and amending the General Plan, Zoning Code, and Zoning Map to effectuate those revisions; and, (4) If the City Council determines to retain the existing Housing Element Designation for Site No. 16, direct Staff to notify Coastal Commission to proceed with processing the LCP Amendment; or if the City Council determines to initiate the zone change proceedings to restore the original zoning designations, continue the public hearing to the June 17, 2025 meeting and direct staff to bring back a resolution to rescind the City’s request of the California Coastal Commission to consider the amendment to the Local Coastal Plan and Zoning Map. 1. Report of Notice Given: City Clerk 2. Declare Public Hearing Open: Mayor Bradley 3. Request for Staff Report: Mayor Bradley 4. Staff Report & Recommendation: Brandy Forbes, Director of Community Development 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 Bradley 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. 01203.0005 2007857.1 CITY COUNCIL MEETING DATE: 06/03/2025 AGENDA REPORT AGENDA HEADING: Public Hearing AGENDA TITLE: Consideration to revise the City Council-adopted Housing Element to remove Site Nos. 16, 18, and 19 from the Housing Sites Inventory. RECOMMENDED COUNCIL ACTION: (1) Review the California Department of Housing and Community Development’s (HCD) formal review letter of the proposed draft revisions to the City Council- adopted 2021-2029 Housing Element to remove Site Nos. 16, 18, and 19 from the Housing Sites Inventory; (2) Review the potential zoning build-out scenarios for Site Nos. 16, 18, and 19 if: a. Restoring the sites’ original designation; or b. Retaining the current Housing Element’s designation, (3) Based on HCD’s letter and the zoning build-out scenarios determine whether to retain the existing Housing Element zoning adopted by the City Council on April 16, 2024 by Resolution No. 2024-16 or to restore the original zoning designation by initiating the public hearing proceedings to consider adopting the draft revised 2021-2029 Housing Element by removing Site Nos. 16, 18, and 19 and amending the General Plan, Zoning Code, and Zoning Map to effectuate those revisions; and, (4) If the City Council determines to retain the existing Housing Element Designation for Site No. 16, direct Staff to notify Coastal Commission to proceed with processing the LCP Amendment; or if the City Council determines to initiate the zone change proceedings to restore the original zoning designations, continue the public hearing to the June 17, 2025 meeting and direct staff to bring back a resolution to rescind the City’s request of the California Coastal Commission to consider the amendment to the Local Coastal Plan and Zoning Map. FISCAL IMPACT: The proposed draft revisions to the 2021-2029 Housing Element and the implementing documents, such as the resolutions and ordinances amending the Housing Element, General Plan, Local Coastal Plan, and Zoning Code will be prepared in-house by City Staff. If needed, the revision to the Zoning Map would be prepared by the GIS mapping consultant as part of their existing contract which is budgeted for $75,000. These measures would be covered in the Community Development Department’s Planning Division Professional Services budget for Fiscal Year 2024-25. VR 01203.0005 2007857.1 Amount Budgeted: $325,000 Additional Appropriation: N/A Account Number(s): 101-400-4120-5101 (General Fund – CDD- Planning Prof/Tech) VR ORIGINATED BY: Brandy Forbes, AICP, Director of Community Development REVIEWED BY: Catherine Jun, Deputy City Manager CJ APPROVED BY: Ara Mihranian, AICP, City Manager ATTACHED SUPPORTING DOCUMENTS: A.Draft revised 2021-2029 Housing Element B.Letter to HCD requesting formal review dated November 26, 2024 C.Letter from HCD dated January 23, 2025 D.Dudek Site Feasibility Study E.Public Correspondence BACKGROUND: The general plan underlies all land use decisions in a city, and, pursuant to state law, all of a city’s subdivisions, capital improvements, development agreements, and other land use actions must be consistent with a city’s adopted general plan and the general plan land use map. As a part of a general plan there are seven mandatory elements, including the Housing Element. The Housing Element assesses the current and projected housing needs for all economic segments of the community. 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 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. 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. 01203.0005 2007857.1 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 (RPVMC) 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 HCD. The City Council also introduced Ordinance No. 681, which amended Title 17 (Zoning) of the RPVMC 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 then-Mayor Pro Tem Alegria and then-Councilmember Bradley (now Mayor Bradley), the City Council directed City 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 City Staff to assess the 0 Clipper Drive property (Site No. 16 of the Housing Sites Inventory), but not exclusively that site. This directive was in response to a statement made by HC D’s Analyst, Fidel Herrera that the City exceeded its RHNA. On September 3, 2024, City Council gave direction to City Staff to work with HCD to prepare removing Site Nos. 16, 18, and 19 from the Housing Sites Inventory of the Housing Element. The reason these sites were selected for possible removal is due to the minimal number of units they would produce, the types of units would be market rate and not serve lower income housing, and that with the removal of these, the City would still meet the RHNA requirements. On February 20, 2025, 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 subject item. When the staff report was issued on March 11, 2025, ahead of the March 18, 2025 City Council meeting, staff received, as a part of late correspondence, several letters that warranted further evaluation. As such, on March 18, 2025, the City Council continued the subject item to a date uncertain. On May 15, 2025, a public notice was issued and published in the Palos Verdes Peninsula News and to residents within 500-feet of the subject sites, providing notification of the City Council’s review and consideration of the subject item. DISCUSSION: HCD formal review letter 01203.0005 2007857.1 The City Council’s direction included authorization for City Staff to submit the proposed draft revisions to the Housing Site Inventory to HCD through the formal review process to determine if the draft, as revised, would be in compliance with State Housing Laws. On August 29, 2024, City Staff confirmed with HCD Staff what the process would be for the City to consider removing any of the sites from the Housing Sites Inventory of the Housing Element. As was presented to the City Council at the September 3rd meeting, and as confirmed by HCD, the process was as follows: • Prepare a draft (not adopted) proposal to remove the site(s) as directed by City Council • Submit draft proposal for review by HCD through the formal review process to determine if it complies with State Housing Laws • If HCD determines the draft to be in compliance, prepare necessary documents (environmental, resolutions, zoning amendments, etc.) • Hold appropriately noticed public hearing at Planning Commission for recommendation • Hold appropriately noticed public hearing at City Council for introduction of ordinances • City Council adopt resolutions and ordinances to effectuate revisions to the Housing Element HCD Staff confirmed that the City would need to follow this process so as not to jeopardize the certification status of the City’s adopted Housing Element. City Staff reviewed the full Housing Element to make the necessary draft revisions that reflected the City Council’s direction. As required by State Housing Element Law, the draft revised Housing Element was posted on the City’s website and made available to interested parties 7 days before it was submitted to HCD. The draft revised Housing Element (Attachment A) was submitted for formal review by HCD on November 26, 2024. On January 23, 2025, the Community Development Department received a letter from HCD (Attachment C) stating that the City’s 2021-2029 Housing Element with the draft proposed revisions (including the removal of Site Nos. 16, 18, 19 from the Housing Site Inventory) will continue to comply with State Housing Element Law once the amendments have been adopted, submitted and reviewed by HCD. However, this letter also stated that HCD was aware that the Clipper Owner submitted a Preliminary Application pursuant to Government Code Section 65941.1 for the Clipper Lot (details below under Additional Information). As noted previously, this item was originally scheduled for discussion at the March 18, 2025 City Council meeting, but staff received, as a part of late correspondence, several letters that warranted further evaluation. As such, on March 18, 2025, the City Council continued the subject item to a date uncertain. Zoning build-out Scenarios Site No. 16 (0 Clipper Rd) 01203.0005 2007857.1 In the time frame of the initial review of the 2021 -2029 Housing Element, Senate Bill 9 (SB9) was passed in September 2021 and became effective in January 2022. SB9 essentially eliminated single-family zoning in California. The City’s Consultant, Dudek, prepared a potential Site Feasibility Study for Site No. 16 (Attachment D) to provide a better understating of the implications of SB9 at this site. The Site Feasibility Study details the potential property buildout using the City’s Subdivision Ordinance, SB9 Subdivision and Accessory Dwelling Units (ADU) regulations that would potentially allow for 20 dwelling units if the site retained the RS-4 zoning designation. SB9 allows for the subdivision of single-family residential lots into two lots with development of up to two units on those subdivided lots. Figure No. 1 below describes the potential build out with RS-4 zoning utilizing SB 9 and the Applicant’s Proposed Site Development Plan submitted to the City as a part of the SB330 Preliminary Application on November 22, 2025 under the RM-22 zoning designation. Figure No. 1 – Potential Unit Yield Comparison Table Zoning RS-4 & SB9 Clipper Site Owners’ Proposed Site Development Plan under RM-22 Ownership Opportunities 9 ownership opportunities 14 ownership opportunities Dwelling Units 20 dwelling units 16 dwelling units The Site Feasibility Study determined that under the RS-4 zoning designation and applying the provisions of SB9, the 0 Clipper Lot could be developed with more housing units than the proposed site development plan under the RM-22 zoning designation. However, the proposed site development plan under RM-22 would allow for more ownership opportunities. Figure No. 2 below shows the different regulations/entitlements required under the RS-4 zoning designation utilizing SB9 and the RM-22 zoning designation. Figure No. 2 – Requirements and Entitlement Comparison Table Regulations/Entitlements RS-4 utilizing SB9 RM-22 Height 16 feet or up to 26’ with a Height Variation* 36 feet View Ordinance Yes Limited, through Conditional Use Permit and Grading Permit Findings Parking Requirements Two spaces for main unit and one new off- Two spaces for all units +25% of total 01203.0005 2007857.1 Regulations/Entitlements RS-4 utilizing SB9 RM-22 street parking space, either enclosed or open, is required for a second unit and for each unit of a two-unit development. For potential buildout, this is approximately 15 off-street total spaces. parking required for guest parking. For proposed development, this is approximately 35 off-street total spaces. Number of Driveway Accesses 9 3 CEQA Review ** None Yes Planning Commission Review (public hearing and comment) None Yes City Council Review None On an appeal Ministerial Review (no public hearing or comment) Yes Neighborhood Compatibility Analysis None Limited Grading Permit None Yes Conditional Use Permit *** None Yes * Height Variation application would require Planning Commission review **SB9 projects are exempt from CEQA analysis ***Condo development requires a Conditional Use Permit (discretionary entitlement) The table above is based on a preliminary review of the submittal materials dated May 21, 2025, and current SB9 regulations, additional review and entitlements may be required. Site Nos.18 (APN: 7564-024-001) and 19 (30800 Palos Verdes Drive East) Sites Nos. 18 and 19 were included in the Residential Overlay District (ROD). Should Site Nos. 18 and 19 be removed from the sites inventory, the subject sites would remain the original zoning designations (Institutional) with the removal of the residential overlay. No residential development is permitted under the underlying zoning designation, Institutional (it should be noted that student housing ((i.e. dormitories)) may be permitted under the Intuitional zoning designation with a Conditional Use Permit). The ROD allowed for specific levels of residential development on each of these sites. Site No. 18 allows a maximum of 12 residential units and Site No. 19 allows a maximum of 8 residential units. The assumption is that these sites would yield above moderate income. For more information on the ROD, please see the ROD regulations. 01203.0005 2007857.1 Determine Whether to Restore Original Zoning or Retain the Housing Element Designations Based on the above discussion, including the Feasibility Site Analysis, the City Council is being asked to determine whether Site Nos. 16, 18 and 19 should individually or in combination be restored to their original zoning designation of RS-4 and Institutional, respectively, or to retain the existing Housing Element designation of RM-22 for Site No. 16 and ROD for Sites 18 and 19. If the City Council decides to restore the zoning to its original designation for one or any combination of the three sites, it is recommended that the public hearing be continued to June 17, 2025 with direction that Staff bring back a resolution to rescind the City’s request of the California Coastal Commission to consider the amendment to the L ocal Coastal Plan and Zoning Map ADDITIONAL INFORMATION: Preliminary Application for Site No. 16 (0 Clipper Rd) On November 22, 2024, an SB330 Preliminary Application was submitted for the property commonly referred to as 0 Clipper Rd (APN: 7573-006-024) (Site No. 16). Pursuant to Government Code § 65941.1(d)(1) within 180 calendar days after submitting a preliminary application, no later than May 21, 2025, the applicant shall submit an application for a development project that includes all of the information required to process the development application consistent with the RPVMC and Government Code § 65940, 65941, and 65941.5. On May 21, 2025, the Applicant submitted the application for entitlements and paid the fee statement for consideration of the required project applications including a Coastal Permit, Conditional Use Permit, Major Grading Permit, Density Bonus Request, Residential Plan Development Permit and Tentative Tract Map. At this time the Planning Division is in the process of reviewing the submitted application materials for completeness. On May 19, 2025, prior to the submittal of the project applications, City Staff met with the property owner, to convey concerns of the City and area residents so that the property owner may consider revisions to the project plans. Some of the concerns expressed included potential view impacts, structure height, height measurement, neighborhood compatibility, density, drainage, and parking . During this meeting, staff encouraged a site visit utilizing story poles to assess potential view impacts, as well as scheduling a meeting with the surrounding residents to begin discussing their concerns and requests. The property owner agreed to meeting at the site and meeting with the surrounding residents. Neighborhood meeting for Site No. 16 (0 Clipper Rd) On May 28, 2025, City Staff coordinated a neighborhood meeting with approximately 25 area residents, the property owner and applicant team, and the City Council Housing 01203.0005 2007857.1 Subcommittee members, Mayor Bradley and Councilmember Perestam. The area residents expressed concerns regarding the proposed project including, but not limited to, view impacts, project height, neighborhood compatibility, and environmental and safety concerns (land movement, storm drainage, etc.). Based on the discussion at the neighborhood meeting, the City is forming a working group with a select few residents that represent the surrounding neighborhood and properties located on Arrowroot Lane to gather their requests and concerns regarding the proposed project. Once specific items are identified, staff can start working with the Applicant to potentially address these concerns. Environmental Review These proposed amendments to the Housing Element would not trigger any of the circumstances in Public Resources Code, § 21166 and CEQA Guidelines, § 15162 that would require subsequent environmental review, as these amendments would result in less impacts to the environment. Public Correspondence On May 15, 2025, a public notice was issued and published in the Palos Verdes Peninsula News and sent to property owners within 500-feet of the subject site providing notification of the City Council’s review and consideration of the subject agenda item. Staff received four comments (Attachment E), in support of removing Site Nos. 16, 18, and 19 from the Housing Sites Inventory and expressing concerns specifically regarding 0 Clipper Rd. (Site No. 16). Public comments submitted after publishing this staff report will be provided to the City Council as late correspondence at the June 3rd meeting. CONCLUSION: Staff recommends that City Council review the HCD formal review letter of the proposed draft revisions to the City Council-adopted 2021-2029 Housing Element to remove Site Nos. 16, 18, and 19 from the Housing Sites Inventory, as well as review the zoning build- out scenarios for the three sites in question. City Council is then being asked to determine whether to retain the existing Housing Element zoning adopted by the City Council on April 16, 2024 by Resolution No. 2024-16 or to initiate the public hearing proceedings to consider adopting the draft revised 2021 - 2029 Housing Element by removing Site Nos. 16, 18, and 19 and amending the General Plan, Zoning Code, and Zoning Map to effectuate those revisions. Should the City Council wish to initiate the zone change proceedings to restore the original zoning designations, continue the public hearing to the June 17, 2025 meeting and direct staff to bring back a 01203.0005 2007857.1 resolution to rescind the City’s request of the California Coastal Commission to consider the amendment to the LCP and Zoning Map. ALTERNATIVES: In addition to the Staff’s recommendations, the following alternative actions are available for the City Council’s consideration: 1. Take no action and proceed to receive and file this report. The current 2021 -2029 Housing Element adopted on April 16, 2024, would remain in effect. 2. Continue the public hearing to a date certain to provide more information as requested by the City Council. 3. Take other action, as deemed appropriate.