Item No. 7
Town of Atherton
CITY COUNCIL STAFF REPORT – REGULAR AGENDA
TO: HONORABLE MAYOR AND CITY COUNCIL
GEORGE RODERICKS, CITY MANAGER
FROM: BRITTANY BENDIX, TOWN PLANNER/M-GROUP
RADHA HAYAGREEV, SENIOR PLANNER/M-GROUP
DATE: MARCH 20, 2024
SUBJECT: 2023 GENERAL PLAN IMPLEMNTATION AND HOUSING ELEMENT
ANNUAL PROGRESS REPORT
RECOMMENDATION
Review and accept the Annual Progress Report (APR) and authorize its transmittal to the California Governor’s Office of Planning and Research (OPR) and the California Department of Housing and Community Development (HCD) pursuant to Section 65400 of the California Government Code.
BACKGROUND
The State of California Government Code 65400 et seq requires jurisdictions to prepare an annual progress report (APR) for review by its local legislative body, the California Governor’s Office of Planning and Research (OPR) and the California Department of Housing and Community Development (HCD). Each report must describe the following:
▪ The status of the local general plan and progress in its implementation. ▪ The progress in meeting its share of regional housing needs. ▪ The degree to which the local general plan complies with the adopted OPR guidelines. ▪ The date of the last revision to the local general plan California Government Code Section 65400(a)(2)B states that “The housing element portion of the annual report … shall be prepared through the use of forms and definitions adopted by the Department of Housing and Community Development …” The tables provided in Attachment 1 reflect the required formatting delivered to the State each year and reflect the progress made in meeting Atherton’s share of regional housing needs. The following list identifies the tables required for the APR:
Housing Element Annual Progress Report Update
March 20, 2024
Table A: Housing Development Applications Submitted
Table A2: Annual Building Activity Report Summary (New Construction, Entitled, Permits and Completed Units)
Table B: Regional Housing Needs Allocation (RHNA) & Extremely Low-Income Need Progress – Permitted Units Issued by Affordability Table C: Sites Identified or Rezoned to Accommodate Shortfall Table D: Program Implementation Status
Table E: Commercial Density Bonus Approved
Table F: Units Rehabilitated, Preserved and Acquired for Alternative Adequate Sites Table F2: Units Converted to Moderate Income
Table G: Locally Owned Housing Element Sites
Table H: Locally Owned Surplus Land
Table J: Student Housing that Received Density Bonus
Table K: Tenant Preference Policies
For the purpose of reporting to the City Council, staff has included the tables that are relevant to the Town’s housing programs at Attachment 1. This includes Tables A, A2, B, and D. The remaining tables are not currently applicable to the Town. Please note that the programs listed in Table D correspond to the current Housing Element, adopted on January 31, 2023. Any changes to the Town’s Housing Element during 2024 will be reflected in the 2024 APR.
ANALYSIS
Status of the Atherton General Plan and Progress in its Implementation The Land Use, Circulation, Open Space and Conservation, Noise, and Community Safety Elements of the Atherton General Plan were updated between 2017 and 2020 and adopted by the City Council on January 15, 2020. The Housing Element is the only element required to be reviewed and certified by HCD. On January 31, 2023, the Town adopted and self-certified its 6th Cycle Housing Element for 2023 to 2031. However, to achieve state-certification, the Town continues to work towards updating the adopted 6th Cycle Housing Element. At present, the Town’s contract planning staff is completing an initial study that addresses requirements of the California Environmental Quality Act (CEQA) to address potential impacts from zoning changes relating to the 6th Cycle Housing Element. As this process continues, the Town continues to pursue the 2023-31 RHNA allocation requirements assigned by HCD and OPR, and in compliance with the Town’s adopted General Plan.
Progress in meeting Atherton’s Share of Regional Housing Needs Atherton’s 2023-31 RHNA allocation is a total of 348 units with affordability requirements of 148 very low-income or low-income units, 56 moderate-income units, and 182 above moderate-income units. The Town’s adopted 6th Cycle Housing Element uses a combination of projected pipeline projects, the Town’s Accessory Dwelling Unit (ADU) program, development of multifamily zoning overlay, underutilized parcels and the SB9 program to meet the unit requirements for all income levels.
Table A lists the permit applications filed with the Planning Department for single family dwellings and accessory dwelling units during 2023. The table identifies sites by Assessor’s Parcel Housing Element Annual Progress Report Update
March 20, 2024
Number (APN), street address, a project name as categorized in the Department’s permit tracking system, and a permit number. The details provided for each application include the type of housing unit developed, such as an ADU or single-family dwelling (SFD), the anticipated tenure of the unit (renter or owner occupied), the date of application submittal, and the anticipated affordability of the unit. The current status of each submittal is also provided, indicating if the application is still pending review, approved, or disapproved. The state also requests that the Town report on the use of any permit streamlining processes (i.e. SB 9) or the use of the state’s Density Bonus program.
As indicated in Table A, the planning department reviewed twenty (20) applications for singlefamily dwellings and seventy-one (71) ADU applications in 2023. Additionally, for forty-seven (47) of the ADU applications the Town also had the opportunity to collect applicant-reported rental information through a voluntary survey. This data indicates that during 2023 the Planning Department received applications for twenty-nine (29) ADUs affordable to households at very low- and low-income levels opportunities, and two (2) ADUs at moderate-income levels. The remaining ADUs and single-family homes are categorized as above-moderate income.
The information provided in Table A2 focuses on permit activity that occurred during 2023 and tracks applications for ADUs and single-family homes that are already “entitled” (approved) by the Planning Department through review and permit issuance by the Building Department, as well as the final inspection and completion process that reflects when a housing unit may be occupied.
If any step during this process occurred during 2023, the Town must report it to the state in the APR. For example, 2 Rosewood Drive received approval by the Planning Department for an ADU in 2018, received a building permit to commence construction in 2019 and received its certification of completion for the permit in 2023. Therefore, this project is captured in the 2023 APR.
Similar to Table A, Table A2 requires any known information relative to unit affordability that may or may not be deed-restricted. Table A2 also requests information relating to permitstreamlining, participation in financial assistance programs, specifics of affordability requirements in deed-restrictions, demolition of existing units and participation in the state’s Density Bonus program.
Table B provides an overview of the Town’s progress in meeting its Regional Housing Needs Allocation Progress. The number of units reflected for 2023 are pulled from the building permit issued data in Table A2 (sections 7, 8 and 9) and only counts 2023 permits. Any building permits that are issued in 2024 will appear in the 2024 APR. As shown in Table B, the Town added an additional 38 units towards its allocation during 2023. Throughout the remaining cycle, the Town must provide an additional 283 units, at varying income levels. To achieve this requirement the Town is relying on a combination of housing programs. Table D summarizes last year’s progress on the adopted Housing Element implementation programs, many of these programs are structured to meet the remaining RHNA objectives.
Degree to which the Atherton General Plan complies with the Adopted OPR Guidelines The OPR adopted General Plan Guidelines in 2003 for use by local jurisdictions in the preparation of their general plans. The Guidelines were updated in 2017. The Guidelines are permissive, not mandatory and are quite extensive. According to staff analysis, the 2019 Atherton General Plan is in compliance with the adopted OPR Guidelines. As the Town considers additional changes to its Housing Element Annual Progress Report Update
March 20, 2024
adopted Housing Element, amendments to the General Plan may be required. However, these changes and their alignment with the OPR Guidelines would be addressed in the 2024 APR.
Date of the Last Revision to the Atherton General Plan
The last revision to all elements except the Housing Element of the Atherton General Plan was adopted by the City Council on January 15, 2020. The 2023-31 Housing Element was adopted and self-certified by the City Council on January 31, 2023. Updates to the adopted 2023-31 Housing Element are forthcoming in 2024 and will be addressed in the 2024 APR.
POLICY FOCUS
The State of California Government Code Section 65300 requires each county and city to adopt a comprehensive, long-term general plan for the physical development of the county or city.
Government Code 65400 et seq requires the preparation of an annual report to the local legislative body, the California Governor’s Office of Planning and Research (OPR) and the California Department of Housing and Community Development (HCD) describing the status of the plan and progress in its implementation, the progress in meeting its share of regional housing needs, the degree to which the local plan complies with the adopted OPR guidelines, and the date of the last revision to the plan. This report is intended to comply with the requirement. There are no other outstanding policy issues related to this report.
GOAL ALIGNMENT
This Report and its contents are in alignment with the following Council Policy Goals:
• Goal B – Preserve Small Town Character and Quality of Life • Goal F – Be Forward-Thinking, Well-Managed, and Well-Planned
PUBLIC NOTICE
No public hearing nor public notice are required prior to City Council consideration of this report.
Public notification was achieved by posting the agenda, with this agenda item being listed, at least 72 hours prior to the meeting in print and electronically. Information about the project is also disseminated via the Town’s electronic News Flash and Atherton Online. There are approximately 1,200 subscribers to the Town’s electronic News Flash publications. Subscribers include residents as well as stakeholders – to include, but be not limited to, media outlets, school districts, Menlo Park Fire District, service provides (water, power, and sewer), and regional elected officials.
FISCAL IMPACT
All costs associated with this project are paid for by the Town of Atherton from the Contract Planner budget.
COMMISSION/COMMITTEE FEEDBACK/REFERRAL
This item went before the Planning Commission on February 28, 2024, as an informational item.
The Planning Commission received a preliminary version of this report as context for the Town’s Housing Element Annual Progress Report Update
March 20, 2024
ongoing efforts to update the 6th Cycle Housing Element. The Planning Commission discussed and provided recommendations to staff on methods to streamline the data collection for future reports.
ATTACHMENTS
1. Housing Element Annual Progress Report Data Tables
2. Analysis of Atherton General Plan with OPR Guidelines