SUMMARY
The City is required by State law to update its General Plan Housing Element every eight (8) years for certification by the Department of Housing and Community Development (“HCD”). The Housing Element is one of the nine (9) “elements” of the City’s General Plan, and it sets forth goals, policies and programs that address future housing needs for all income levels over a planning period of 2021- 2029, which coincides with a unit count established by the Regional Housing Needs Assessment ( “RHNA”). The RHNA is mandated by State Housing Law as part of the periodic process of updating housing elements of the General Plan, and Arcadia was allocated 3,214 housing units for the 2021-2029 Planning Period.
The City Council adopted the Housing Element Update on February 15, 2022. However, after several iterations of review, on January 6, 2023, HCD determined that the City needed to adopt specific rezoning strategies and complete other actions in order to receive certification of the Housing Element. Therefore, it is recommended that the City Council adopt Resolution No. 7543 (Attachment No. 1) and introduce Ordinance Nos. 2399 and 2400 (Attachment No. 2 and 3), along with an Addendum to the Adopted Negative Declaration for the Housing Element Update, to approve General Plan Amendment No. GPA 23-02, Zone Change No. ZC 23- 03 and Text Amendment No. TA 23-02 for the Citywide Rezoning Project to implement the adopted Housing Element.
BACKGROUND
In January 2021, the City retained the services of Kimley Horn & Associates to help assist with updating the Housing Element. The City was also awarded a Local Early Action Planning Grant (“LEAP”) in the amount of $150,000 to help with this Housing Element Update. State law requires that all cities update their Housing Element once every eight (8) years to be in compliance with the law. The Housing Element Update must include an evaluation of the effectiveness of previous housing programs and existing goals and policies, and identify revisions that are necessary to bring the Housing Element into compliance with current State law and HCD requirements, namely:
Providing adequate housing sites to achieve a variety of housing Preserving and improving housing and neighborhoods
Assisting in the provision of affordable housing
Removing governmental constraints to housing developments Promoting fair and equal housing opportunities
An important component of the Housing Element is compliance with the Regional Housing Needs Assessment (“RHNA”) allocation. The RHNA is the process by which each city is assigned a share of the region’s need for additional housing units during the next Housing Element Planning Period (2021-2029). RHNA allocations are determined for the City by the Southern California Association of Governments ( “SCAG”) based on criteria established by State law. The City’s allocation is as follows:
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Income Category Number of Units Percentage
Very Low Income Units 1,102 34%
Low Income Units 570 18%
Moderate Income Units 605 19%
Above-Moderate Income Units 937 29%
Total 3,214 100%
As mentioned above, the Housing Element Update must demonstrate site development capacity to facilitate the construction of a variety of housing types for all income levels. It is important to note that the City is not responsible for the production of these units; rather, the City is obligated to provide adequate sites for the development of units through either appropriate General Plan land use and zoning designations, or through zoning changes to accommodate these units. Whether or not housing actually gets built, and what type of housing gets built, is largely up to the landowners and the housing market. However, as mentioned, the City is responsible to provide programs and policies to facilitate new housing development, especially for low and very-low income housing.
It was determined through a review of projects within the pipeline, as well as growth patterns in general, that the City’s allocation of “above moderate” units would be met through existing zoning and current policy. However, in order to meet the City’s RH NA requirement for affordable units, additional housing programs and strategies were needed. As a result, strategies were developed through the Housing Element Update process that expanded high density zones, increased the allowed density in various areas, allowed residential overlay zones in predominantly commercial or industrial areas, and created policies to encourage affordable housing and a range of additional housing types. In keeping with the City’s overall policy of the last 15 years or so, growth and density continues to be directed into areas with adequate infrastructure and away from single-family neighborhoods.
With assistance from Kimley Horn, the City progressed through its process of adopting the updated Housing Element for the 6
th Cycle. This included an extensive public outreach
component through the latter months of 2021, and study sessions with the Planning Commission and City Council. Ultimately, a package of material was completed that consisted of the following components:
1. The Housing Element itself (Chapter 5 of the General Plan) , which sets forth the City’s housing goals and policies to address identified housing needs.
2. The Housing Element Implementation Plan (Chapter 10) , which identified 37 specific implementation programs to be pursued to achieve Housing Element goals and policies, including a number of the aforementioned rezoning efforts to achieve the density and residential land uses necessary to encourage housing units to be built.
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3. The Housing Element Technical Background Report, which includes the following:
• An analysis of the City’s population, household and employment base, and characteristics of the housing stock.
• A review of potential market, governmental, and environmental constraints on production, maintenance, and affordability of housing. • An analysis of fair housing issues and actions to foster inclusive communities to achieve racial equity, fair housing choice, and opportunity for all.
• An evaluation of the land and financial resources available to address the City’s identified housing needs.
• An analysis of strategies for housing sites identified by income category to meet the City’s RHNA allocation.
• A summary of the community outreach efforts undertaken that focused on issues relating to residential land uses and housing needs. • A review of past accomplishments under the previously adopted Housing Element.
The entire Housing Element update package was presented to the Planning Commission on January 25, 2022, and was recommended for approval to the City Council. The City Council held a public hearing on February 15, 2022, where the Housing Element Update was approved along with the provision that any additional modifications or additions required by HCD could be approved administratively. Development Services Staff then worked with HCD over the next eight months to achieve certification. Several complete iterations were provided to HCD based on technical comments provided. Ultimately, the City submitted what was believed to be a final and compliant version of the documents, and re-adopted the Housing Element on November 1, 2022, at HCD’s request. However, HCD ultimately determined through a letter dated January 6, 2023, that the rezoning strategies outlined in the Element must be completed prior to receiving certification. While the City disagreed with this determination, since t hat time the Development Services Department and the City’s consultant group have been working to implement these zoning changes.
The rezoning efforts require the following entitlements: a General Plan Amendment to amend the Land Use Map and the text of the Land Use Element of the General Plan, a Zone Change to modify the zoning designations of various properties citywide and to change the City’s Zoning Map, and a Text Amendment to change the text of the Development Code to effectuate the zoning changes. The complete package of draft materials was submitted to HCD for their review on December 11, 2023, to receive any comments prior to the City’s review process . Other than a request for assurance the specific language was included in the implementing Resolution/Ordinances, HCD has not provided any additional comments to date. The Planning Commission held a p ublic hearing on January 23, 2024, and unanimously recommended approval of the Rezoning Project.
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DISCUSSION
The Housing Element Implementation Plan provides 37 specific implementation programs. Of these, HCD identified those programs that proposed rezoning actions as required prior to certification. Through the current action, the following rezoning efforts are being proposed to meet HCD’s requirement:
1. Expand the Downtown Mixed-Use Zone to properties east of 2 nd Avenue and west
of 5th Avenue and also along Rolyn Place.
2. Add a Downtown Mixed- Use Overlay Zone over commercial manufacturing properties generally along St. Joseph and La Porte Streets.
3. Increase the residential density allowed in the Mixed- Use Zone from 30 dwelling units/acre to 50 dwelling units/acre.
4. Add a “Residential Flex” Overlay Zone over portions of Live Oak Avenue, Las Tunas Drive, and the General Commercial (“C-G”) zoned areas of the City to allow residential projects in these locations up to 50 dwelling units/acre, if affordable housing units are proposed.
5. Increase the residential density allowed in the High- Density Multi -Family Residential (“R-3”) Zone from 30 dwelling units/acre to 40 dwelling units/acre.
Each of the proposed rezoning actions is described further below. It is important to note that HCD recognizes “eligible sites” for the provision of new low and very low -income housing units if the properties meet certain criteria for size, common ownership, and/or the number of units that can be accommodated. The total projected capacity for units toward meeting the RHNA is based on these eligible sites recognized by HCD. As can be seen in Figures 1- 5 below, a map is provided for each rezoning strategy showing the eligible sites along with a table providing the estimated number of affordable units and market-rate units that the eligible sites can accommodate. However, it is not practical or desirable land use planning to only rezone the eligible sites. Proceeding in this manner would lead to a patchwork of zoning changes where sites adjacent to similarly-zoned sites would have different land use standards and allowances. In order to provide a straightforward and sensible land use map, the rezones proposed encompass more property than just the eligible sites as identified by HCD.
Figures 6-9 below show the entirety of the properties being proposed for rezoning as part of this effort. The associated Addendum to the Adopted Negative Declaration for the Housing Element (see Attachment No. 7 ) reflects the fact that this rezoning effort encompasses more property than just the eligible sites. Development over time will be tracked and, if the capacity identified in the eligible sites estimates is close to being met, additional environmental analysis will be needed under CEQA.
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1. Downtown Mixed-Use (“DMU”) Expansion
The City has identified General Commercial (“C-G”) and Commercial Manufacturing (“C- M”) zoned properties in and adjacent to Downtown Arcadia as an opportunity to introduce high density residential zoning in the form of the existing Downtown Mixed- Use (“DMU”) Zone. The current DMU Zone has been successful in attracting several projects that provide a large number of new housing units, including affordable units.
As shown in Figure 1, it is proposed that the DMU Zone will be expanded to the area east of 2
nd Avenue to 5th Avenue and from the I-210 Freeway on the north to the light rail right- of-way on the south. In addition, another area along Santa Anita Avenue and Rolyn Place and Santa Anita Avenue and W. Huntington Drive are also proposed to be rezoned to DMU. Of the 40+ acres of land identified as part of this strategy, 38.8 acres met the criteria required by the State for sites projected to accommodate low and very low-income units. This area will be rezoned to Downtown Mixed- Use at 80 dwelling unit s per acre (“du/acre”) with a 1.0 floor area ratio for non-residential uses.
The area to be rezoned is currently a mix of successful strip commercial centers as well as restaurants, banks, office buildings , and similar uses. As properties transition over time, there are ample opportunities for these sites to add residential units as part of mixed- use projects or, if affordable units are provided, stand-alone residential uses. Recently, a property within this area received entitlements for a new mixed- use project. “The Derby Mixed-Use Development” proposed 214 units, including 9 affordable units, as well as a rebuilt The Derby restaurant and additional restaurant space and can serve as a model for the type of development expected in this Zone.
2. Downtown Mixed-Use Overlay
Commercially-zoned property north of the existing Downtown Mixed- Use Zone is appropriate for the implementation of a Downtown Mixed- Use (“DMU”) Overlay that will allow for residential uses in a mixed-use development format at a maximum density of 80 du/acre with a 1.0 floor area ratio for non- residential uses. As shown in Figure 1, this location is typified by small lots and a mix of commercial, industrial, and auto-related uses.
The DMU Overlay will not make any current uses nonconforming but will allow properties to transition over time to residential projects where suitable. Approximately eight acres of property within this area is eligible for development with very low or low-income units.
For both the DMU Zone and DMU Overlay, the adopted Housing Element assumed a density of 64 du/acre to calculate the theoretical capacity of each site and assumed only 50% of these properties would redevelop over time. As such, t he realistic capacity of these two rezoning strategies is a total of 1,361 units, 352 of which are low or very low - income units.
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Income Category Capacity to Accommodate RHNA
Low and Very Low 352
Moderate 205
Above Moderate 804
Total New Net Units 1,361
Figure 1 – Downtown Mixed Use and DMU Overlay Map and Table
3. Increase the Residential Density in the Mixed-Use Zone
The City has identified the Mixed-Use (“MU”) Zone as an opportunity to increase density to promote the development of more residential units which could be supported by adjacent uses. The proposal is to increase the maximum density from 30 du/acre to 50 du/acre. Of the Mixed -Use acreage in the City , approximately 27 acres met the criteria required by the State for sites projected to accommodate low and very low-income units.
An assumed density of 40 du/acre was applied to calculate the theoretical capacity of each site along with a redevelopment percentage of 50%. With these assumptions, the theoretical capacity of these sites is projected at 502 units, 133 of which are projected to be affordable to low and very low-income households.
Figure 2 below shows the Mixed- Use Zones along First Avenue between Huntington Drive and Duarte Road and within the Live Oak/Las Tunas corridors. Mixed- use development has already occurred in this area (e.g. the corner of Santa Anita Avenue and Las Tunas Drive) and several additional projects have been proposed for redevelopment.
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Income Category Capacity to Accommodate RHNA
Low and Very Low 133
Moderate 76
Above Moderate 293
Total New Net Units 502
Figure 2 – Mixed-Use Upzone Map and Table
4. Add a Residential Flex Overlay Zone over portions of Live Oak Avenue, Las Tunas Drive, and General Commercial Areas around the City
The Las Tunas and Live Oak Corridor s provide an opportunity to introduce increased residential density on viable commercial properties. The adjacent mixed-use zoning and access to transit supports the increase of residential uses in the corridor. As mentioned above, there have been several projects proposed in this area and there are a number of parcels that are currently underdeveloped that could transition into housing and/or mixed- use projects. To the east, adjacent to this stretch of predominantly commercial uses in Arcadia, the County has approved several large residential projects that have begun to change the face of this corridor and introduce a much more residential feeling. A Residential Flex Overlay Zone is recommended over portions of both Las Tunas and Live Oak. The Residential Flex Overlay Zone has already been applied succes sfully to properties along Las Tunas in the past.
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Approximately 13.88 acres of property along Las Tunas Drive and 6.15 acres of property along Live Oak met the criteria to accommodate low and very low -income units. A Residential Flex Overlay would be applied to these sites that will allow for residential uses at a maximum density of 50 du/acre. Taken together, eligible parcels within the Las Tunas and Live Oak corridors were given an assumed density of 40 du/acre of theoretical capacity with the understanding that they would all redevelop over time. As such, between these two areas, a total of 780 housing units could be provided, 202 of which would be affordable to low or very low -income households. Figure 3 below show s the area of proposed changes, and the table provides the realistic capacity.
Income Category Capacity to Accommodate RHNA
Low and Very Low 202
Moderate 118
Above Moderate 460
Total New Net Units 780
Figure 3 – Residential Flex Overlay (Las Tunas and Live Oak)
The General Commercial zoned properties throughout the City are another area that provide redevelopment opportunities where underutilized commercial sites can transition to support residential development in cases where it is more desirable than a struggling commercial use, if affordable units are provided. For these areas, the Residential Flex Overlay Zone is also proposed. Several sites that were previously zoned as General Commercial have redeveloped over time or are proposed for redevelopment (e.g. former Coco’s site on Colorado Blvd., former Vons headquarters site on Michillinda Ave.).
Approximately 73.5 acres of property are part of the C-G Residential Flex Overlay Focus Area
that will allow for residential uses at maximum density of 50 du/acre. However, an
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assumed density of 40 du/acre was applied to calculate the theoretical capacity of each site along with a redevelopment factor of 50%. In addition, only those properties that are identified as eligible sites may be redeveloped into residential. Based on these assumptions, the realistic capacity of these sites is projected at 1,470 units, 382 of which are projected to be affordable to low and very low-income households.
Figure 4 provides a map and table that depicts the proposed rezone for General Commercial.
Income Category Capacity to Accommodate RHNA
Low and Very Low 382
Moderate 221
Above Moderate 867
Total New Net Units 1,470
Figure 4 – Residential Flex Overlay (General Commercial)
5. Increase the Density in the Multi-Family (“R-3”) Zone
The High Density Residential (“R-3”) Zone has been identified by the City as an area with the opportunity to support increased density (from 30 du/acre to 40 du/acre) that is compatible with adjacent higher density residential uses and other uses that support residential development. Higher density within this Focus Area can be expected to accommodate lower income units.
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Approximately 177.21 acres met the criteria to accommodate l ow and very low-income units. An assumed density of 32 du/acre was applied to calculate the theoretical capacity of each site along with a reasonable redevelopment percentage of 25 percent . T he resulting realistic capacity of these sites is projected at 635 units, 165 of which are projected to be affordable to Low and Very Low-income households. The expectation with these sites is that units will be added over time as properties develop and smaller units will be proposed to reach higher density levels within the same basic footprint of the buildings.
Figure 5 below provides a map and table that shows the area of the proposed changes.
Income Category Capacity to Accommodate RHNA
Low and Very Low 165
Moderate 97
Above Moderate 373
Total New Net Units 635
Figure 5 – High Density Multi-Family Residential (“R-3”) Upzone
As mentioned in the text above, the maps in Figures 1- 5 represent the eligible sites identified to meet HCD’s requirements to calculate capacity toward the RHNA. In order to create a coherent and efficient land use map, however, the proposed rezoning strategies apply to more property than just the eligible sites. Figure 6 below (and included as
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Attachment No. 5 ) provides the properties included in the rezoning effort citywide, and Figures 7-9 show magnified images of the same map focusing on various regions of the City for ease of viewing.
Figure 6 – Rezoning Efforts Citywide
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Figure 7 – Project Rezone Map – East
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Figure 8: Project Rezone Map – West
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Figure 9: Project Rezone Map – South
In order to effectuate the zone changes described in the maps and tables above, modifications to the General Plan, Zoning Map, and Development Code are needed. Each of these entitlements is described below.
General Plan Amendment
In order to rezone the properties identified, the City’s General Plan Land Use Map and Land Use Element must be modified. Attachment No. 4 shows the proposed changes to the General Plan Land Use Map. The changes proposed are directly related to the zone changes and facilitate additional residential development (or higher residential densities) in various areas of the City. The changes to the General Plan Land Use Map are summarized below; please see Attachment No. 4 for the specific parcels being modified.
• Downtown Mixed -Use Zone Expansion – The land use designation for the properties being included in the Downtown Mixed-Use expansion will be changed
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to be consistent with the rest of the DMU zoned areas. This new designation will be “Downtown Mixed Use (80 du/acre & 1.0 FAR).” This means the area will support 80 dwelling units/acre and a Floor Area Ratio of 1.0 for the commercial component of any project.
• Downtown Mixed -Use Overlay – The DMU Overlay Zone will be placed over existing Commercial/Light Industrial zoned property in the D owntown area. As such, the land use designation will be “Commercial/ Light Industrial (80 du/acre &
1.0 FAR).” This means that the base zoning designation will remain, but residential projects will be allowed at the density shown.
• Mixed-Use Upzone – The General Plan land use designation for the Mixed- Use (“MU”) Zone will simply be modified from 30 dwelling units/acre to 50 dwelling units/acre. These areas are shown on the map as “Mixed- Use (50 du/ac & 1.0 FAR).”
• Residential Flex Overlay Zone Areas – The General Plan land use designation for General Commercial zoned properties citywide will be modified to allow for residential projects up to 50 dwelling units/acre to facilitate the Residential Flex Overlay Zone. This is shown on the map as “Commercial (50 du/ac & .5 FAR).”
• High Density Residential ( “R-3”) Upzone – The General Plan land used designation for the High Density Residential areas of the City (zoned R -3) will simply be modified to allow up to 40 dwelling units an acre instead of 30. This is shown on the Map as “High Density Residential (20-40 du/ac)”.
In addition to the General Plan Land Use Map, Chapter 2 of the General Plan, the Land Use and Community Design Element, also needs to be modified to facilitate the rezoning efforts. The Land Use and Community Design Element ( “LU Element ”) provides the blueprint for land use and development throughout the City, in all zones and geographic areas. It includes goals and policies to ensure compatibility between land uses and adherence to the overall vision for growth in the City.
The proposed amendments to the LU Element are included within Resolution No. 7543 (Attachment No. 1). They allow for the additional residential densities proposed as well as the allowance for residential uses in specific areas throughout the City. These changes are shown in redlines throughout the document. There are modifications proposed to the High Density Residential, Commercial, Commercial/Light Industrial, Mixed- Use, and Downtown Mixed -Use land use designations to allow for the density and housing modifications described in each of the rezones. In addition, several policies have been added to the LU Element to acknowledge that stand- alone residential projects with affordable units are encouraged in various land use designations. Finally, additional commentary has been added to the section on the implications of land use policy to
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acknowledge that the changes are within the growth and development anticipated when the LU Element was last drafted in 2010.
Zone Changes
The Zone Changes are the driver of the Project and these were discussed above in detail.
Please see Ordinance No. 2399 (Attachment No. 2) for the full citywide Zoning Map that shows all the properties being modified by this rezoning effort. A summary of the changes is provided below.
• Downtown Mixed-Use Zone Expansion – The Zoning Map shows the areas being re-zoned to DMU, both east of 2nd Avenue and west of 5th Avenue and along Rolyn Place and Santa Anita Avenue.
• Downtown Mixed-Use Overlay – The DMU Overlay Zone is a new zone shown on the map and applied to the existing Commercial/Light Industrial zoned property adjacent to Downtown Arcadia.
• Mixed-Use Upzone – The MU-zoned areas are shown on the map as changes because the allowable density is being increased.
• Residential Flex Overlay Zone Areas – The Residential Flex Overlay Zone is shown on the map and applied to the applicable areas along Live Oak, Las Tunas, and General Commercial zoned properties citywide.
• High Density Residential (“R-3”) Upzone – The R-3 zoned areas are included on the map as changes because the allowable density is being increased.
Text Amendments to the Development Code
Along with changes to the General Plan and Zoning Map, the City’s Development Code (Article IX, Chapter 1 of the Municipal Code) also must be modified to allow for the changes to residential density and development potential. Each of the applicable zones and/or land uses has been modified to reflect the zone changes , and development standards have been added or changed to allow for affordable housing and/or other state- required housing types.
Each year at the State level, there are numerous changes and new bills that are passed by the legislature that impact cities. Many of these changes need to be codified and added to local Development Codes. Given this, in addition to the changes required by the rezoning effort, the text amendments being proposed also include modifications to achieve compliance with state housing law s and/or to implement additional portions of the City’s adopted Housing Element Implementation Plan. There will be additional modifications needed to the Development Code over time to complete the implementation
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efforts identified in the Housing Element. Most notably, the City is committed to bringing an Inclusionary Housing Ordinance forward in the near future as a modification to the Development Code. Inclusionary Housing is a method of requiring affordable units be built along with any proposed housing project. This is an important component of the overall approach to providing affordable housing and will be considered by the Planning Commission and City Council in the near future. However, the current effort encompasses only the portions of Housing Element implementation that are required by HCD prior to certification.
Ordinance No. 2400 (Attachment No. 3) provides the proposed text amendments included with this project. The amendments occur in many of the Divisions of the Development Code and have been grouped into a single document for ease of review. Only those pages relevant to the changes (shown in redline) or necessary for context, are provided. A summary of the changes proposed to each of the Divisions of the Development Code is provided below.
Division 1—Enactment, Applicability, and Enforcement
o Showing newly-created Downtown Mixed-Use Overlay Zone.
Division 2 – Zones, Allowable Uses, and Development Standards o Added Downtown Mixed-Use Overlay Zone development standards. o Added clause that High Density multi-family housing is permitted by right if 20% of the units provided are affordable units (per the Government Code) o Changed densities in specific zones, and allowed residential projects in specific zones if affordable units are proposed, to match the proposed zone changes
o Modified regulations for Residential Care Facilities, Supportive Housing, Transitional Housing, and Employee Housing to meet State law o Added Residential Flex Overlay Zone development standards
Division 3 – Regulations Applicable to All Zones
o Modified parking requirements if affordable housing units are provided o Modified density bonus provisions to meet State law
Division 4 – Regulations for Specific Land Uses and Activities o Added new development standards and regulations for Emergency Shelters per State law
o Added new regulations for Employee Housing per State law
Division 5 – Subdivisions
o Added a lot merger incentive program citywide to promote lot assembly
Division 7—Permit Processing Procedures
o Modified rules for Reasonable Accommodations per State law
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o Simplified design review processes for High Density multi-family projects if affordable housing units are provided.
Division 9 – Definitions
o Added new definitions for Emergency Shelters, Employee Housing, and Farmworker Housing.
FINDINGS
General Plan Amendment
Section 9108.03.060(A) of the Development Code requires that for a General Plan Amendment to be granted, it must be found that all of the following prerequisite conditions can be satisfied:
1. The proposed action is consistent with the goals, policies, and actions of the General Plan.
Facts to Support This Finding: The Rezoning Project is a primary implementation effort associated with the City’s approved Housing Element, which in and of itself is part of the General Plan. An approved (and certified) Housing Element is required to make the General Plan consistent with State law requirements per Government Code Section 65580, which requires the Housing Element to be updated every eight years upon the adoption of a region’s Regional Housing Needs Allocation ( “RHNA”). The Housing Element Update identified goals, policies, and implementation programs addressing housing opportunities, removal of governmental constraints, improving the condition of existing housing and providing equal housing opportunities for all Arcadia residents. These goals, policies, and program actions further the City’s overall policy goal within the General Plan to inspire a more diverse, sustainable, and balanced community by implementing strategies and programs that contribute to economic and socially diverse housing opportunities that preserve and enhance Arcadia’s character. The rezoning efforts that are part of the proposed action are the heart of the Housing Element’s Implementation Plan and will provide the capacity for required affordable housing units throughout the City.
2. The proposed action would not be detrimental to the public interest, health, safety, convenience, or welfare of the City.
Facts to Support This Finding: The Housing Element Update reflects the input of residents, decision makers, and other stakeholders in the community. The proposed action is to implement the adopted Housing Element rezoning strategies to enable additional residential units (and especially affordable housing units) to be built throughout the City. This is a direct benefit to the public interest in that housing affordability is a regional crisis and all cities need to do their part to
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accommodate regional housing needs. The rezones proposed do not compromise public health, convenience, or welfare; rather, they provide additional opportunities for new housing of all types to be built in the City of Arcadia.
The Addendum to the Adopted Initial Study/Negative Declaration for the Housing Element Update analyzed all the significant environmental impacts of all candidate housing sites associated with the proposed 6th Cycle Housing Element Update, and it was determined that all the potential impacts would be less than significant.
Additionally, the Addendum also documented the fact that the total number of housing units anticipated by the rezoning effort will be less than the number that was approved in the adopted Negative Declaration for the Housing Element Update. Therefore, the proposed General Plan Amendment would not be detrimental to public health and welfare.
Zone Change
Section 9108.03.060(C) of the Development Code requires that for a Zone Change to be granted, it must be found that all of the following prerequisite conditions can be satisfied:
1. The proposed amendment is in conformance with the goals, policies, and objectives of the General Plan.
Facts to Support This Finding: The proposed Zone Changes are in conformance with the General Plan. The Zone Changes proposed are to implement the City’s approved Housing Element, which is an integral part of the General Plan. There are five (5) separate zone change actions being proposed: 1) Expansion of the Downtown Mixed- Use Zone; 2) establishment of a new Downtown Mixed-Use Overlay; 3) Increase the density in the Mixed-Use Zone; 4) Expansion of the Residential Flex Overlay Zone; and 5) Increase the density in the High Density Multi-Family Zone. The changes to the Downtown Mixed-Use Zone, will allow residential development in an urban, mixed-use format, in furtherance of the goals and polices found in the Land Use & Community Design Element, the Economic Development Element, the Circulation and Infrastructure Element and, most importantly, the Housing Element of the General Plan. The upzoning of both of the Mixed-Use and the High Density Multi-Family Residential Zones will enable more dense projects to be built and encourage the development of affordable housing, in furtherance of the goals and polices of the Housing Element and t he Land Use & Community Design Element. The City’s Housing Element requires that the City meet the State-mandated Regional Housing Needs Allocation. Mixed-use development in what was formerly commercial areas is the most effective and beneficial way to do so in a fully developed community. The addition of the Residential Flex Overlay Zone also achieves this purpose. For all of these reasons, the proposed project is consistent with the General Plan.
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2. The site is physically suitable (including absence of physical constraints, access, compatibility with adjoining land uses, and provision of utilities) for the requested/anticipated land uses/developments.
Facts to Support This Finding: The Rezoning Project does not, in and of itself, propose any specific development. Where applicable, the rezones have been accompanied by text amendments that provide development standards appropriate for each respective zone. Additionally, the proposed rezones for the most part follow existing zoning patterns and simply increase density options or introduce residential development into new areas. The Addendum to the Adopted Negative Declaration submitted along with the Project reviewed all of the rezones proposed and found them to be consistent with the adopted Housing Element Update and previous environmental review. Any new project that is proposed on a site that has been rezoned will be subject to its own site review to determine compatibility with adjoining land uses and the provision of utilities. In addition, all projects submitted on a rezoned site will be subject to its own environmental review as well.
3. The proposed amendment will not be detrimental to the public interest, health, safety, convenience, or general welfare of the City.
Facts to Support This Finding: The Housing Element Update reflects the input of residents, decision makers, and other stakeholders in the community. The proposed action is to implement the adopted Housing Element rezoning strategies to enable additional residential units (and especially affordable housing units) to be built throughout the City. This is a direct benefit to the public interest in that housing affordability is a regional crisis and all cities need to do their part to accommodate regional housing needs. The rezones proposed do not compromise public health, convenience, or welfare; rather, they provide additional opportunities for new housing of all types to be built in the City of Arcadia.
The Addendum to the Adopted Negative Declaration for the Housing Element Update analyzed all the significant environmental impacts of all candidate housing sites associated with the proposed 6th Cycle Housing Element Update, and it was determined that all the potential impacts would be less than significant.
Additionally, the Addendum also documented the fact that the total number of housing units anticipated by the rezoning effort is less than the number that was approved in the adopted Negative Declaration for the Housing Element Update.
Therefore, the proposed zone changes would not be detrimental to public health and welfare.
Text Amendment
Pursuant to Section 9108.03.060(B) , an amendment to the Development Code may be approved only if all of the following findings are made:
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February 6, 2024
1. The proposed Development Code amendment is consistent with the goals, policies, and objectives of the General Plan; and any applicable specific plan(s).
Facts to Support the Finding: The proposed Text Amendments are in conformance with the General Plan. The Text Amendments proposed effectuate the rezones that implement the City’s approved Housing Element, which is an integral part of the General Plan. There are five (5) separate zone change actions being proposed: 1) Expansion of the Downtown Mixed-Use Zone; 2) Establishment of a new Downtown Mixed-Use Overlay; 3) Increase the density in the Mixed-Use Zone; 4) Expansion of the Residential Flex Overlay Zone; and 5) Increase the density in the High Density Multi-Family Zone. The Text Amendments provide new code sections or edits to existing sections that support these rezones so that the Development Code and General Plan are internally consistent.
The changes to the Downtown Mixed-Use Zone, for example, will allow residential development in an urban, mixed-use format, in furtherance of the goals and polices found in the Land Use & Community Design Element, the Economic Development Element, the Circulation and Infrastructure Element and, most importantly, the Housing Element of the General Plan. The upzoning of both of the Mixed-Use and the High Density Multi-Family Residential Zones will enable more dense projects to be built and encourage the development of affordable housing, in furtherance of the goals and polices of the Housing Element and t he Land Use & Community Design Element. The City’s Housing Element requires that the City meet the State- mandated Regional Housing Needs Allocation. Mixed- use development in what was formerly commercial areas is the most effective and beneficial way to do so.
The addition of the Residential Flex Overlay Zone achieves this. For all of these reasons, the proposed project is consistent with the General Plan.
2. The proposed amendment is internally consistent with other applicable provisions of this Development Code.
Facts to Support the Finding: The purpose of the proposed Text Amendment is to effectuate the rezones required by the Housing Element Implementation Plan. As such, all Divisions of the Development Code have been evaluated to bring them all into compliance with each other, and with the General Plan. In addition to the rezones, additional text amendments to the Development Code are provided as part of this action to meet State law and standards related to the Government Code. The proposed text amendments have been reviewed to ensure they are consistent with the other applicable provisions of the Development Code, as well as State law.
Finally, the proposed amendments have been reviewed by the City Attorney for internal consistency to ensure that there are no conflicting standards or uncertainties.
Housing Element Update
February 6, 2024
ENVIRONMENTAL ANALYSIS
The proposed project has been assessed in accordance with the authority and criteria contained in the California Environmental Quality Act ( “CEQA”) and CEQA Guidelines.
An Initial Study/Negative Declaration ( “IS/ND”) was originally prepared for the Housing Element Update project for the City, as the lead agency. The IS/ND was prepared consistent with the requirements of CEQA on the basis that there was no substantial evidence that there may be significant environmental impacts on specific environmental areas. The original IS/ND was made available for public review from September 30, 2021, to November 1, 2021, and ultimately was adopted along with the Housing Element Update project on February 15, 2022.
Since the rezoning effort is implementation of the adopted Housing Element, the appropriate CEQA document for rezoning project is an Addendum to the Adopted IS/ND.
A Notice of Intent to adopt the Addendum to the adopted IS/ND was published in both the Pasadena Star News and the Arcadia Weekly on December 21, 2023, and again on January 25, 2024, posted on the City’s webpage, mailed twice to individuals who are on the City’s interested party list for the Housing Element Update, and posted at the L.A.
County Clerk’s office on December 22, 2023. A copy of the Addendum was made available for public review from December 22, 2023, to January 22, 2024, on the City’s webpage, at the Planning Division office, and at the City’s Library. During this time period, public agencies, organizations, and the public in general were afforded the opportunity to review the Addendum and submit written comments regarding the documents and the proposed project. As of February 1, 2024, no comments were received regarding these rezones or to the environmental analysis.
Similar to the adopted IS/ND, the Addendum reviewed the rezoning project and concluded that there was no substantial evidence that there may be significant environmental impacts on specific environmental areas. The Addendum accounted for the fact that the number of housing units anticipated to result from the rezones was less than what was anticipated during the original adoption of the Housing Element. The Addendum to the adopted IS/ND is provided as Attachment No. 7 to the Staff Report.
PLANNING COMMISSION MEETING
The Planning Commission held a public hearing on January 23, 2024, to consider this matter. The Planning Commission asked questions and held a lengthy discussion on each of the aspects of the project. The were several areas where C ommissioners pointed out typos and incomplete sentences or references that have been corrected and incorporated into the final documents. There were several speakers at the Planning Commission meeting who spoke in favor of the rezones and one speaker who stated that affordable housing is very important and necessary in this community. Following the public hearing, the Commission voted 5-0 to recommend approval of the project . Planning Commission
Housing Element Update
February 6, 2024
Resolution No. 2141 reflecting this decision and the associated Planning Commission Staff Report are included as Attachment No. 6.
FISCAL IMPACT
Approval of the Rezoning Project itself will not result in a direct fiscal impact to the City.
Implementation of the goals and policies within the Housing Element will lead to additional housing units with the City, which generally provide increases in property value and property taxes and a positive fiscal benefit to the City. In addition, new housing developments will pay their fair share to offset any new traffic impacts, and/or recreation and fire facility demands, as appropriate. Conversely, loss of commercial property over time in favor of residential development could result in lower sales taxes and other City revenues as land uses change over time. Each project that is proposed as a result of the Rezoning Project or strategy proposed within the Housing Element Update will be reviewed by the Planning Commission and/or City Council prior to adoption, and the specific fiscal impact of each action will be analyzed on a case-by-case basis as projects come forward.
RECOMMENDATION
It is recommended that the City Council adopt the Addendum to the Adopted Negative Declaration for the Housing Element Update, adopt Resolution No. 7 453 amending the General Plan Land Use Map and Land Use and Community Design Element, introduce Ordinance No. 2399 amending the Zoning Map and zoning designations Citywide, and introduce Ordinance No. 2400 amending various sections of the Arcadia Development Code, to approve the Citywide Rezoning Project.
Should the City Council approve the Rezoning Project, the information will be sent to HCD for certification. Minor edits and modifications requested by HCD will be handled administratively and the document will be adjusted in that manner. If HCD has further substantive comments and/or does not certify the Housing Element, additional documents may be returned to the Planning Commission and City Council for further review.
Attachment No. 1: Resolution No. 7543 (Includes Final General Plan Land Use Map and Redlined General Plan and Community Design Element)
Attachment No. 2: Ordinance No. 2399 (Includes Final Zoning Map)
Housing Element Update
February 6, 2024
Attachment No. 3: Ordinance No. 2400 (Includes Redlined Changes to the Development Code)
Attachment No. 4: Changes to the General Plan Land Use Map Attachment No. 5: Changes to the Zoning Map
Attachment No. 6: Planning Commission Resolution No. 2141 and Staff Report (no attachments)
Attachment No. 7: Addendum to the Adopted Initial Study/Negative Declaration for the Housing Element Update