Beverly Hills City Council
March 18, 2024

Looking further back, the City has also approved several mixed use residential projects prior to the development of the MUOZ regulations.

These sites were previously developed with commercial uses that include restaurant uses, commercial offices, and a private membership club. These projects demonstrate that prior to the availability of the MUOZ that allows many commercially zoned sites in the City to redevelop with a mixed use residential use, it was still deemed valuable to redevelop commercial sites with mixed use residential projects and the existing commercial uses did not act as a significant impediment to this redevelopment proposal.

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The data shows that a wide range of existing commercial uses have been redeveloped into projects that include residential uses in the last 10 years, and have not acted as impediments to redevelopment.

Many of the properties in the MUOZ that are identified as potential sites in the Underutilized Sites (Tab 1) category, or the Conversion/Adaptive Reuse (Tab 2) category contain existing uses such as: commercial offices (including medical or law offices), retail uses, car dealership or car rental uses, and religious or educational uses. As demonstrated by the redevelopment data, such uses have not acted as roadblocks for redevelopment, as new mixed use residential projects been proposed on sites containing these uses.

In addition to the trends shown in the City’s recent development data regarding the redevelopment of sites with certain commercial uses, there are several generalized trends affecting retail and commercial uses as a result of changes to lifestyles and products, especially after the COVID-19 pandemic. These trends demonstrate a movement towards lower demand for auto-related uses, and physical stores for certain types of commercial or retail uses, and higher demand for online services and on-demand services.

Auto-Related Uses: One general trend is a lower demand for autorelated uses, such as car rentals, physical car dealerships, auto repair shops, and gas stations. This trend can be attributed to recent changes in the ways that cars are used for transportation, changes to car technology and manufacturing, and changes to the ways cars are sold. With increased use and availability of on-demand car and transportation services such as Uber and Lyft, and on-demand electronic scooter services such as Bird and Lime, the overall demand for car rentals has been lowered. In addition, alternative modes of transportation are becoming more available and accessible in the greater Los Angeles area, with the development and extension of additional Metro lines, bus routes, and bike-share services. Changes to car manufacturing and state law mandates have made electric vehicles more popular, which has also led to a decrease in value of gas station uses. While gas stations could be converted to electric vehicle charging stations in the future, many new commercial and residential developments already include vehicle charging infrastructure.

Furthermore, the car sales business model has shifted from a need for physical car dealerships (with large parking lots or structures for car City of Beverly Hills General Plan
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inventory storage) to a remote and online model, where cars are bought and sold directly to the consumer’s location (e.g. Carvana).

Several car manufacturers have eliminated the need for car storage, and now only maintain a physical presence with a showroom for the vehicles, where test drives may or may not be available. Such showrooms have more flexibility as far as located, and can even be located within shopping centers (such as the Lucid and Tesla showrooms in the Century City Westfield Mall, and Lucid showroom on Wilshire Boulevard in the City), whereas previously they may have required a larger physical presence for both a showroom and inventory storage. Since cars are also manufactured to be more reliable and more electronic vehicles are on the market, the demand for generalized auto repair shops has been lessened, as vehicles may require less ongoing maintenance (especially with electric vehicles), or may require more specialized maintenance directly through the car manufacturer. All of these factors have resulted in a lower demand for auto-related uses, and this trend is evident in the City, as two recent applications for mixed use residential developments have been submitted on sites with a car rental use and a car dealership use. This trend could indicate that there are opportunities for redevelopment of sites that currently contain auto-related uses, as these uses may be reasonably expected to be discontinued during the planning period. There are several sites in the MUOZ that contain such uses, including car rental businesses, car dealerships, auto repair shops, and gas stations.

Bank Uses: Another notable generalized trend is that retail banks have a lower demand for physical branch locations as compared to before. The increased use of online banking options has lowered the need for physical banks for services such as depositing checks or transferring money into other accounts. For example, Bank of America has notably been closing many of their physical locations in California, which opening more branches in other parts of the United States. For each of these new locations in other areas, Bank of America has indicated that they will close two existing branch locations. In addition, Wells Fargo Bank has been closing many of its physical branch locations, and closed 17 offices nationwide in May of 2023. Furthermore, even if banks do choose to maintain physical branch offices, the trend appears to be that such offices will have a smaller footprint because of the lower demand for consumer services that would be provided at these offices. This trend could indicate that there are opportunities for redevelopment of sites that currently City of Beverly Hills General Plan
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contain bank uses, as these uses may be reasonably expected to be discontinued during the planning period. There are several sites in the MUOZ that contain bank uses, including both retail branches and offices.

General Retail and Commercial Use Trends: Another general trend in commercial uses is a general lower demand for physical retail spaces.

This can potentially be attributed to the slowdown of retail shopping concurrent with the COVID-19 pandemic shutdown, combined with the growing trend for online shopping as a more convenient consumer option. More specifically in the City of Beverly Hills, several local retail stores (non-national brands) closed during the pandemic, and were not often replaced by retail uses, but more often were replaced by restaurant or café uses. In addition, large national retail brands such as Barneys New York closed during the pandemic, and Saks Fifth Avenue has contemplated a redevelopment of their anchor location in the City (Saks has submitted an application to redevelop the site with new commercial buildings and a new multi-family residential building). However, most if not all of the City’s high-end retail stores (international brands such as the fashion houses on Rodeo Drive, including Louis Vuitton, Gucci, Cartier, Dior, etc.) are concentrated within the City’s downtown Business Triangle area, and are not located within the MUOZ. The Business Triangle area is generally known as the area bordered by North Santa Monica Boulevard to the north, Wilshire Boulevard to the south, and Crescent Drive along the east. While these national and international retail brands may be less susceptible to a downturn in retail demand since they cater to a specific demographic, these uses are not generally located in the MUOZ, and are located in the commercial zones of the City that do not permit multi-family residential uses by-right.

With regard to the commercial uses that are located in the MUOZ, the vast majority of these uses are commercial office uses (with a variety of occupants, including law offices, medical offices, professional or administrative services, creative professionals, etc.), with some retail uses on the ground floor. The MUOZ contains commercial areas of the City that are arguably less desirable in comparison to the Business Triangle area, which commands the highest rents and demand for space, as a result of high visibility throughout the community and the greater Los Angeles area, and translating to high foot traffic and number of patrons. Often, such retail uses in the MUOZ may be a small pharmacy, café or coffee shops, and are often occupied by local City of Beverly Hills General Plan
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brands that are not franchised or national brands. Since these smaller, local retail brands may not have access to additional capital loans or funding, they may be more susceptible to economic downturns, and thus, these commercial spaces may experience higher rates of turnover. Additionally, local brands that are not franchised chains or national brands may be less likely to have long-term leases, and may also turnover in the space more often as a result. Another trend has been for larger anchor tenants, such as CVS Pharmacy, Rite Aid, LA Fitness, etc., to close duplicative locations within a geographic region.

Since these national brands have more latitude to relocate or already have multiple locations in one metropolitan area, there may be more flexibility as far as where they can be located or may be more able to move to other locations. Larger gyms with memberships have also become less popular and less necessary as the options for fitness classes online or more specialized fitness classes becomes more popular (e.g. yoga studios, pilates studios, etc.).

Since there are many of these types of uses in the MUOZ, this indicates the presence of opportunities for redevelopment of sites currently occupied with a combination of offices and local or national brand retail or restaurant uses, as these uses may be reasonably expected to be discontinued during the planning period. Furthermore, the data presented above regarding existing uses on sites submitted for redevelopment in the MUOZ indicate that these types of commercial uses have already been discontinued during the planning period and deemed less valuable than the redevelopment of the site with a mixed use residential project. There are many sites in the MUOZ that contain both commercial office and local retail or restaurant uses, which are all uses that have already been discontinued on sites that are currently undergoing redevelopment. Therefore, these sites can be considered appropriate for redevelopment and the data supports that these uses could reasonably be discontinued during the planning period and do not present an impediment to redevelopment.

In view of all of the trends affecting new development and commercial uses, it is reasonable to anticipate redevelopment of sites located in the MUOZ with mixed use residential projects. The general trends for redevelopment in the City point to a marked increase in proposals for multi-family residential and mixed use residential developments, with a low demand for new commercial-only developments. The trends also support a movement away from physical retail stores and that the types of commercial uses located in City of Beverly Hills General Plan
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the MUOZ do not present an impediment for the redevelopment of these sites.

Further detail is provided in each section below for each of the categories of the sites inventory, including the selection of sites in each.

Tab 1: Underutilized Sites
Underutilized sites with potential for additional residential development or redevelopment are listed in Table C-3.the first tab of Exhibit A. The most significant opportunities for additional housing development are within the Mixed Use (MU) Overlay Zone.

In 2020, the City adopted the MU Overlay Zone that encompasses over 109 acres (Figure C-1). The overlay zone adds mixed use development as a permitted use within the designated areas.

Maximum residential density within the overlay zone is 79.2 units per acre and height limits range from three to five stories depending on location. A summary of the mixed use regulations is posted on the City’s website to assist property owners, developers and other interested parties in understanding the new mixed use regulations.4 The regulations for the MU Overlay Zone have been written to encourage and ease development of mixed-use projects as much as possible. The stated purpose of the MU Overlay Zone is to “encourage vibrant, walkable neighborhoods and increase the availability of housing in the City, while preserving the vitality of existing commercial corridors and minimizing displacement of existing residents”. This includes a provision allowing the conversion of existing commercial buildings to mixed use buildings, without requiring compliance with standards related to parking, loading facilities, outdoor living space, setbacks, and height limits, if such buildings do not currently comply with these standards or if the building would become structurally defective by complying with these standards. This means that the MU Overlay Zone regulations provides opportunity for both the redevelopment of vacant or underutilized sites, and developed sites.

Moreover, there are some larger commercial sites that have been 4 Mixed Use Overlay Guideline Document:
http://www.beverlyhills.org/cbhfiles/storage/files/1108659042674523311/Beverly HillsMixedUseGuideFeb2021.pdf
General Mixed Use Overlay Information Page: www.beverlyhills.org/mixeduse City of Beverly Hills General Plan
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flagged as not likely to be redeveloped by a public comment letter provided. However, these commercial buildings would not necessarily need to be demolished and redeveloped, given the regulations allowing the conversion of existing commercial buildings to mixed use projects. The commercial office vacancy rate in the city was 16.8% for April, May, and June of 20215, and 17.8% as of September 20216,,, and in August 2023, the current office average vacancy rate for the Beverly Hills submarket was at 17.2%., which also points to a potential incentive to convert an existing commercial building or portion of a commercial building to a mixed-use project. Similarly, the vacancy rate for the commercial retail sector has increased recently to 7.1% as of September 20217, which may indicate further incentives for commercial property owners to explore redevelopment or conversion of existing properties to mixed use projects. It should be noted that the recent vacancy rates may be slightly higher than normal conditions, due to the COVID-19 pandemic. The emerging trends of online shopping and remote working have accelerated as a result of COVID. Communities across the State are reimagining its nonresidential properties by introducing residential uses on site.

TheThe underutilized sites category (Tab 1) of the sites inventory was developed by evaluating all of the parcels included in the MU Overlay Zone against criteria that was developed to determine the potential for each site to be redeveloped or converted to residential housing.

Notes regarding why a parcel was removed or remained based on field observations and evaluation of the site are included in the column called “Field Notes/Existing Conditions & Analysis for Keeping/Removing”. These notes were the result of a windshield survey of the sites, as well as a close review of the existing uses and conditions on each site, and a review of any available data online regarding the site. The criteria were developed by analyzing development trends for mixed use projects located in West Hollywood, Santa Monica, and Pasadena, which are cities where land costs are comparable to Beverly Hills. The development trend data was then used to create the following thresholds that indicate whether a parcel was more likely to be redeveloped, due to certain site conditions and factors present. The development trend data is included as Exhibit B, attached to Appendix C. Parcels that met 3 out 5 Source: https://beverlyhillscourier.com/2021/08/28/commercial-vacancy-rateremains-high-in-beverly-hills/ 6 Source: CoStar Report
7 Source: CoStar Report.

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of 6 criteria were kept in the sites inventory, as parcels that are most likely to be redeveloped. The density applied to the underutilized sites is consistent with the maximum density allowed per the MU Overlay Zone, which is 1 dwelling unit per 550 square feet of lot area, and is consistent with the density calculations in recently submitted mixed use projects in the MU Overlay Zone. The thresholds established for these criteria are conservative in order to provide realistic estimates on potential capacity.

Parcels that were considered to not be likely to be redeveloped or converted met one or more of the following evaluation criteria:
 Parcels with existing commercial buildings that were more than 3 stories tall (not including parking levels that are above-ground) because such parcels may have a high improvement-to-land value ratio8 and therefore may not be as likely to be redeveloped due to their economic value, and some buildings may be taller than what is currently allowed under development regulations;
 Parcels with existing commercial buildings that were recently renovated or looked more modern (indicating they were constructed more recently) because such parcels may have a high improvementto-land value ratio and therefore may not be as likely to be redeveloped due to their economic value;
 Parcels with existing commercial buildings that contained medical uses, especially larger buildings and those containing surgery centers or are occupied by prominent medical groups (i.e. Cedars-Sinai, UCLA Health, etc) because such uses typically require expensive tenant improvements and therefore may not experience high turnover or vacancies as often;
 Parcels with existing commercial buildings that contained uses unlikely to be discontinued due to their rarity or the restrictions related to establishing this type of use, such as certain types of car dealerships and vehicle service centers, schools or educational institutions, gas stations, religious uses, etc.; and
 Parcels for which entitlements were recently approved or are under review because such site may be redeveloped in the future with a specific alternative project.
8 An improvement‐to‐land value (I/L) ratio looks at the value of any site improvements (such as any structures or construction) to the value of the land. Previous research by the University of California, Berkeley to identify potential infill development opportunities in California utilized an I/L ratio for commercial and multi‐family residential properties. The authors of that study noted that this methodology “…has a strong theoretical and empirical basis: urban parcels for which improvement values are less than land values are widely considered to be economically underutilized. Indeed, many, if not most, market‐rate infill housing projects are currently built on refill sites.” City of Beverly Hills General Plan
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Similarly, parcels that were considered likely to be redeveloped or converted met one or more of the following evaluation criteria:
 Evidence of a lack of investment in the property, such as lack of maintenance, or lack of recent upgrades and improvements on the property because such conditions may indicate that a property has a lower improvement-to-land value ratio and therefore may be more likely to be redeveloped;
 For lease or for sale signs or advertisements online that indicate a higher rate of vacancies and/or turnover of spaces because this may create an economic incentive for property owners to explore redevelopment options for the property;
 Parcels with underutilized improvements, such as those with 1- or 2- story buildings (not including any above-ground parking levels) that do not cover the entire lot, and may include surface parking lots because these properties may have a lower improvement-to-land value ratio and therefore may be more likely to be redeveloped;  Large parcels that would not require lot assemblage in order for a developer to convert or redevelop the site, even if these parcels contain buildings that are greater than 3 stories because the adaptive reuse regulations in the mixed use overlay zone that allows existing commercial buildings to be converted to residential uses without complying with otherwise applicable multi-family zoning standards;  Parcels with existing commercial buildings that are higher than 3 stories, but have the potential to be converted to residential uses as a result of their regular floor plan development, and regular window patterns because such a layout may lend itself better to residential unit development; and
 Parcels that are narrow but located adjacent to other underutilized parcels that could be reasonably combined for one unified development because there may be a greater economic incentive to redevelop combined parcels.
 Criteria A: Improvement to Land (I/L) Value Ratio: This criteria was calculated based on development trend data from West Hollywood, Santa Monica, and Pasadena for mixed use projects. The data used (improvement and land values) was pulled from the from the LA County Assessor site. Based on the project trend data, the average I/L value of sites that are being redeveloped is 0.42. Any parcel that has an I/L ratio of 0.42 or less has been highlighted with color on the table.  Criteria B: Age of Building: This criteria was calculated based on development trend data from West Hollywood, Santa Monica, and Pasadena for mixed use projects. The data used (date built or City of Beverly Hills General Plan
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effective date built) was pulled from the from the LA County Assessor site. Based on the project trend data, the median age of buildings being redeveloped is 76 years old. Any parcel with a building that is 76 years or older has been highlighted with color on the table.  Criteria C: Existing FAR: This criteria was calculated based on development trend data from West Hollywood, Santa Monica, and Pasadena for mixed use projects. The data used (existing building square footage and parcel size) was pulled from the from the LA County Assessor site. Based on the project trend data, the average existing FAR for sites that are being redeveloped is 0.95. Any parcel that has an existing FAR of 0.95 or less has been highlighted with color on the table.
 Criteria D: Existing Building Height (Stories): This criteria was calculated based on development trend data from West Hollywood, Santa Monica, and Pasadena for mixed use projects. The data used (height of existing buildings) was estimated from Google maps/street view images. Based on the project trend data, the percentages of the 30 existing buildings being redeveloped as part of 27 proposed projects, 43% are 1 story, 37% are 2 story, and 20% are 3 or more stories. As a result, any parcel with a building that is estimated between 0 to 2 stories has been highlighted with color on the table.
 Criteria E: Lot Coverage (Percentage): Data from the LA County Assessor and the SCAG Regional Data Platform was used to calculate this, which is the building footprint divided by the lot area, and expressed as a percentage. The proposed threshold cutoff for this is 50% of lot coverage or lower, as this could indicate that there is potential for added value if the site is redeveloped, given that there are no or small setback requirements for development in the mixed use zone, and no minimum lot coverage requirements.. Any parcel with 50% of lot coverage or lower has been highlighted with color on the table.
 Criteria F: ½ Mile of Planned Metro Station: This measure was calculated with data provided by the City’s GIS team, and has identified parcels that are within ½ mile of a planned Metro station (Wilshire/La Cienega station, Wilshire/Rodeo station, and Avenue of the Stars/Constellation station). This will be used as an additional criteria that supports the likelihood that a site will redevelop, given the City of Beverly Hills General Plan
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general assumption that the metro stations will help spur development activity as well as provide an amenity for the area. In addition, the proximity to metro stations will support residential development further, as projects can take advantage of reduced parking requirements for housing development projects (AB 2097). Any parcel within ½ mile of a planned Metro station has been identified with a “Y” and highlighted with color on the table.
 Affordability Level Unit Allocation: Within the category of underutilized sites (Tab 1 of the Sites Inventory), potential units have been allocated to the lower income category based on the City’s existing inclusionary housing requirement, which requires 1 deed restricted affordable unit for projects with 5 to 9 total units (or the payment of an in lieu fee), and 10% of the total units are required to be deed restricted affordable units for projects with 10 or more total units. Since this inclusionary housing requirement would be applied to any of these projects, this allocation notes the actual number of affordable units that will be required to be provided in such a mixed use project. Based on the inclusionary housing requirement, the number of lower income units allocated for sites that resulted in a total of 5 to 10 units reflects this requirement of 1 unit. For sites that resulted in a total number of units between 11 and 19 units, a total of 2 lower income units were allocated, based on the 10% inclusionary housing requirement, which is rounded up. For sites that resulted in a total number of units between 20 to 40 units, a 15% calculation of lower income units has been applied because this reflects both the inclusionary housing requirement and the actual percentage of affordable units seen in housing project applications recently processed by the City (calculated by taking the total number of affordable units divided by the maximum number of units allowed by the zoning on the project site). The remaining number of units on these properties (if any) were allocated to the moderate income category, which also includes the market rate units. For sites that are greater than ½ acre, state law allows the total number of units to be allocated to the lower income category because the underlying density exceeds the default density required by the law. For these sites that are greater than ½ acre on this list, the total number of units allowed have been allocated to the lower income category, as permitted by law. However, in no instance did this allocation exceed 100 units, which is consistent with the threshold applied to the list of adaptive reuse/conversion properties on Tab 2 of the sites inventory.

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To illustrate the demand for mixed-use development in the City, Table C-42 shows recently entitled or constructed mixed-use buildings in Beverly Hills. These buildings were all entitled prior to the establishment of clear zoning regulations or an entitlement process for mixed-use projects, which illustrates that there has been notable demand from developers to construct mixed-use buildings along commercial corridors, even before regulations for the MU Overlay were established. All of the mixed-use buildings previously constructed or entitled contain one floor of commercial uses with the remaining floors developed for housing, illustrating that it is profitable for developers to devote the majority of the floor area in mixed-use buildings as housing.

Previously approved mixed-use buildings range in density from 30 units per acre to 59 units per acre. The MU Overlay allows for up to 79.2 units per acre, which exceeds the density that has previously proven to be profitable and desirable for developers to construct.

Table C-2
Approved Mixed Use Projects
Address Number
of Units
Residential & Commercial
Floor Area Total
Units per
Acre
55 N. La Cienega Blvd 105
9908 S. Santa Monica
Blvd.
25 90,005 SF 30
8600 Wilshire Blvd. 23 47,781 SF 39
9200 Wilshire Blvd. 54 157,630 SF 57
Source: City of Beverly Hills, 2021
Furthermore, the sites contained in Table C-3Exhibit A include a significant number of vacant sites or sites used only as surface parking lots, as well as parcels that are partially occupied by surface parking lots. In the previous Housing Element planning period (2014-2021), there were a total of 190 multi-family units approved. Already since the beginning of this current Housing Element planning period (2021- 2029), there are a total of 444 407 housing units proposed in multifamily unitsor mixed use projects either currently under review in the entitlement process, or in concept review (260239 units currently under review and 184168 units in concept review). This demonstrates that there is significant interest in the current market in multi-family housing development, and that the City’s regulations are not precluding this type of development, but are encouraging such projects. In addition, there are already more multi-family residential projects under review now than during the past planning period.

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The City also has a number of projects under review at this time that are either multi-family or mixed-use projects:

Tab 2: Adaptive Reuse / Conversion Sites
Currently, the Mixed Use Overlay Zone allows any existing commercial building within the overlay to be converted (or adaptively reused) into residential housing units, which was not previously allowed prior to the creation of the Mixed Use Overlay Zone in 2020. The conversion regulations also allow a conversion application to request relief from certain mixed use standards if it would not be physically feasible for the existing commercial building to comply with such standards. The standards from which relief may be granted by the reviewing authority include requirements for: parking (which may not apply in cases where state law pre-empts the City from imposing or requiring minimum parking requirements), loading facilities, outdoor living space, commercial-residential transitional setbacks (if the building has legally nonconforming setbacks), and height limits (if the building has legally nonconforming heights). The City will also consider a Zone Text Amendment by the end of 2023 to allow the maximum density for an adaptive reuse/conversion in the Mixed Use Overlay Zone to be calculated with the minimum unit size of 500 SF (with no upper limit on density resulting from this calculation), rather than a calculation based on the lot size. This calculation will be based on the existing building square footage available for conversion, instead of the currently applicable calculation based on the lot size. This calculation is more appropriate for an adaptive reuse/conversion project because it would help determine the maximum number of units that can reasonably fit within the existing building envelope, rather than basing the maximum density on the size of the lot when the building has already been developed on such lot.

Adaptive Reuse / Conversion Criteria
In the conversion (adaptive reuse) category (Tab 2) of the sites inventory, certain existing properties within the Mixed Use Overlay Zone have been selected based on the criteria listed below. A list of these properties with more detailed descriptions of why they have been selected has also been provided in the next section. Properties with existing buildings and improvements that met at least 4 out of the 6 criteria have been kept in this category and allocated units as described.
 Criteria 1 – Age of Building: This list only includes buildings that were built on or before 1970 – at least 53 years or older. At this point, older City of Beverly Hills General Plan
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offices may be less desirable than newer buildings with more updated amenities and office spaces. This approach eliminates office buildings from 1980s-1990s that may have larger floor plates as this was an era when the use of fluorescent lighting became more widespread and allowed the use of larger floor plates without window access for every area of the building. Buildings constructed prior to this era were designed to have narrower corridor spans so that sufficient natural lighting is provided to all areas of the building.
 Criteria 2 – Existing Building Height: Buildings that are 6 or more stories and/or have a height that is 1 or more stories above the currently permitted height limit met this criteria because these are legally nonconforming heights that may not be easily achieved again under current code regulations. This means the building is potentially more valuable as an existing asset and would not be as likely to be redeveloped (because the same height would not be able to be achieved), and therefore may be more likely to be contemplated for alternative uses such as a conversion from commercial to residential/mixed use as a way to preserve the asset.
 Criteria 3 – Qualifying Building Shape: H, O, C, U, L, or oblong rectangle (rectangles that are narrow and have longer sides than they are wide) shapes – these buildings have increased window access and narrower interior spaces so there is not a lot of wasted space once units are created inside. In contrast, buildings that are square shaped will have more interior space without windows that will not be as easy to convert to a residential use. While it is possible for developers to create interior courtyards or lightwells (such as was done in the case study discussed in the NY Times article “How to Solve a 25-Story Rubix Cube”), this adds cost and may not be as feasible for structural reasons etc. and may depend upon the site-specific conditions. Square/cube shaped buildings may be suitable for conversion as long as the depth of the floor plate is not any greater than 60 feet (assuming that units are 40-50 feet deep) because this would allow for the use of most of the interior building space. Any building shape in which there is a narrower width is generally more suitable for residential conversion because this means that there is less interior space that does not have windows.
 Criteria 4 – Window Access: This criteria was applied if the building facades are comprised of windows on at least two sides of the building. Windows along facades are important features that allow conversion to residential more easily because this means that the building will already have windows for residential units. In particular, City of Beverly Hills General Plan
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windows with three different types of patterns are especially suitable for conversion: curtain walls (where the entire façade is made of windows), punched in windows (where there are slightly recessed windows with only borders separating them) and ribbon windows (where there are rows of windows separated by horizontal borders), according to an informational study performed by the Gensler Research Institute (“Design Parameters for Urban Office to Residential Conversion”). These types of windows may be more easily modified to become operable, or converted to balconies.

Source: Gensler Research Institute (“Design Parameters for Urban Office to Residential Conversion”)
 Criteria 5 – Building footprint < 30K: and/or maximum building dimension of 75 FEET - Unit depths typically will have a maximum depth of 40-50 feet, and therefore, conversion of the building into residential is more feasible if the narrowest width of the building does not exceed 90 to 100 feet. A similar measure of this is the building footprint, which is correlated to the building floor plate size. A building footprint for an oblong rectangular shaped building of no more than 30,000 square feet would mean that if the maximum width dimension is not greater than 100 feet, that the remaining length is approximately 300 feet – or other combinations thereof – which are reasonable dimensions for a residential building. The 100-foot width can accommodate a double loaded corridor with units facing out on both sides of the building and a common interior hallway, and a City of Beverly Hills General Plan
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length of 300 feet can accommodate approximately 15 units (with a depth of 20 feet), for a total of 30 units per floor. In order to be more conservative with these criteria, the City has only identified buildings that both have a maximum building footprint of 30,000 square feet and a maximum width (on the narrowest side) of 75 feet.  Criteria 6 – 20+ Years Since Significant Renovation: This criteria was met if the building has not undergone a significant renovation (as noted in CoStar and checked against City records) within the last 20 years. If no renovation was on file, then the years defaulted to the original building date. This particular criteria indicates a lack of recent, significant investment into the building, which could indicate that potential redevelopment of the site is more attractive. Buildings that have not undergone significant renovations could also become a liability if the building has not been update to accommodate ADA access. This criteria also indicates that the building could be less desirable for its current uses, as the amenities and features are more outdated and must compete with newer buildings for tenants.  Calculation of Potential Units in Conversion Projects: The existing Mixed Use Overlay Zone regulations (BHMC section 10-3-1888), currently allow the conversion or adaptive reuse of existing commercial buildings to a mixed use development project. However, the Mixed Use Overlay Zone regulations currently calculate density based on the area of the lot, allowing a maximum density of 1 dwelling unit per 550 square feet of lot area (or 79.2 dwelling units per acre). The current density calculation is proportional to the lot size, rather than allowing an existing commercial building to create units within the existing building envelope. To address this, the City will be bringing forth a change to the density calculation applicable to conversion/adaptive reuse projects in September 2023, which will allow these types of projects to calculate maximum density based on a minimum unit size of 500 square feet of floor area. This calculation would take the existing building floor area above the first floor of the building (as that area is reserved for commercial uses per the Mixed Use Regulations) and divide it by 500 square feet (the minimum allowed unit size) to determine the maximum density allowed. The Planning Commission has recently reviewed this proposed change to the density calculation at their meeting of September 28, 2023, and adopted a resolution recommending the proposed change to the City Council, and this will be scheduled for review by the City Council by the end of 2023.

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As such, the maximum density allowed for the list of conversion buildings have been calculated based on the proposed density change, however, in order to ensure that these calculations are more realistic, the existing building floor area is reduced by approximately 20% of the total floor area to account for common spaces, hallways, and elevators/stairwells or other non-rentable areas. In addition, instead of utilizing the minimum unit size of 500 square feet, which would provide the maximum density (and which will be allowable per the proposed change to the regulations), the maximum number of units on each property uses a unit size of 850 square feet, in order to account for the fact that differently sized units may be provided within a project. This figure of 850 square feet is also consistent with the unit sizes of recently proposed mixed use projects. The reduction of the floor area and the increase in the unit size used to calculate the maximum density and number of units allocated to each site provides a more conservative and realistic calculation of how many units might be able to “fit” within the existing building, though the maximum density would technically result in a greater number of units (once the proposed change is adopted).
 Application of Adaptive Reuse Uptake Filter: In recognition of the fact that the regulations related to adaptive reuse/residential conversion projects in the MUOZ is relatively new, and there has only been one adaptive reuse project approved, the total number of units allocated to these properties has been adjusted down with the application of a filter. While the 850 square foot-density calculation results in a total of 1,288 units that could be accommodated on the sites in the residential conversion category, the filter makes this total unit estimate more conservative by reducing the total unit calculation on each site by 42%. The application of this filter results in a reduction of the total unit count from 1,288 to 747 units on sites identified for potential residential conversion. This filter intends to reflect that, while the identified sites are strong candidates for adaptive reuse development, given the limited track record of adaptive reuse in Beverly Hills there may be some uncertainty in the redevelopment of these sites. This more conservative filter reduces the reliance of the sites inventory on these adaptive reuse sites to accommodate the City’s RHNA allocation.  Affordability Level Unit Allocation: The potential units calculated for the list of conversion sites have been allocated to either the lower income or moderate/market rate income categories based on the following. For sites that are greater than ½ acre, state law allows the total number of units to be allocated to the lower income category because the underlying density exceeds the default density required City of Beverly Hills General Plan
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by the law. For the sites that are greater than ½ acre on this list, a maximum of 100 lower income units have been allocated, with the remainder of units allocated to the moderate/market rate income category. This allocation is intended to reflect a mix of levels of affordability of units that might be provided within a mixed use project. The City’s existing inclusionary housing requirement requires 1 deed restricted affordable unit for projects with 5 to 9 total units (or the payment of an in lieu fee), and 10% of the total units are required to be deed restricted affordable units for projects with 10 or more total units. The lower income unit allocation for sites that are less than ½ acre on this list reflects the inclusionary housing requirement calculation, and is noted in the “inclusionary less than ½ acre” column.

List of Buildings Identified for Potential Conversion (Adaptive Reuse) from Commercial to Mixed Use
The City has compiled a list of buildings that have been identified as potential candidates for conversion from commercial uses into mixed use developments, which meet criteria identified as supporting the likelihood of redevelopment and adaptive reuse into mixed use developments. These criteria are supported by research and previous adaptive reuse projects in the City or the greater Los Angeles region.

The below list provides more details on each of the properties in order to support the likelihood of redevelopment into adaptive reuse projects.

CoStar Ratings9 - According to CoStar, the 5-star rating system used in their data is designed to be a more universal rating system that assesses properties based on several features, including: architectural features, structural and systems specifications, amenities, site and landscaping treatments, third party certifications and detailed property type specifics. This information is collected by CoStar Research and is utilized across their national database of properties.

This rating system is intended to provide a better comparison and understanding of building/property quality across markets, in contrast to the Class A, B, or C ratings, which may be more localized within the market region (comparative within the local market). Thus, the below 9 http://buildingratingsystem.com/
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list provides the CoStar 5-star rating, as well as the Class rating, in order to provide a more accurate picture of the property conditions. _______________________________________________________________ 144 S Beverly Drive
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 Built: 1962
 Renovated: N/A
 Class Rating: Class B
 Floor Area: approximately 35,235 SF
 Parcel Size: 6,069 SF
 Existing tenants: a law firm, investment firm, architectural firm, skincare company, and entertainment company, fashion
brand, and bank.
 CoStar Rating: 2-stars out of 5 stars
 Other conditions: this building is narrow and is an oblong rectangular shape, with a regular window pattern, and
appears to have rooftop outdoor space and balcony areas that could become amenities for residential uses
_______________________________________________________________ 291 S. La Cienega Blvd
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 Built: 1956
 Renovated: 1990
 Class Rating: Class B
 Floor Area: approximately 35,248 SF
 Existing tenants: law firms, investment firms, a talent agency, a design firm, an insurance agency, and an acupuncture office.  CoStar Rating: 3-stars out of 5 stars
 Other conditions: this building is a trapezoidal shape, but has an undulating, organic form on the first floor that provides a distinctive separation from the rest of the building. The upper floors have horizontal separations with setback windows, which lends to the conversion of these areas to balconies or open space. The building has good window coverage, with windows on several sides. The building is in very close proximity to the proposed La Cienega/Wilshire metro station, which may help spur redevelopment.
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132 S Rodeo Drive
 Built: 1962
 Renovated: 1994
 Class Rating: Class B
 Floor Area: approximately 42,000 SF
 Vacancy Rate: approximately 26% of the total building area  Existing tenants: law firms.
 CoStar Rating: 3-stars out of 5 stars
 Other conditions: This building has a narrow, oblong rectangular shape, and has windows along all sides that are not abutting another building. The vertical window pattern is a ribbon window, which has City of Beverly Hills General Plan
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been identified as a window pattern by Gensler Research as one that is apt for residential uses.
_______________________________________________________________ 8383 Wilshire Blvd
 Built: 1971
 Renovated: 1993
 Class Rating: Class B
 Floor Area: approximately 426,106 SF
 Existing tenants: various professional and service uses, such as a charitable foundation, an exercise studio, entertainment companies, law firms, financial investment firms, real estate City of Beverly Hills General Plan
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management firm, an insurance company, and a business
management firm.
 CoStar Rating: 4-stars out of 5 stars
 Other Conditions: This building has been identified as potentially historic, which means that it may qualify for use of tax incentives and more flexibility with zoning and building code requirements. The building has an unusual shape, which is similar to a “Y”, with three equal length arms that extend from the center. Although the building is large, the shape provides extensive window coverage on all sides of the building. In addition, there are open areas on the property that can be easily converted into private open space or other amenities for the building.
_______________________________________________________________ 8447 Wilshire Blvd
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 Built: 1963
 Renovated: 1963
 Class Rating: Class B
 Floor Area: approximately 96,355 SF
 Existing tenants: talent agencies, entertainment companies, a real estate development firm, real estate agencies and investment firms, and a marketing agency.
 CoStar Rating: 3-stars out of 5 stars
 Other Conditions: This building has a shape that jogs along the front façade, with one portion protruding further towards the street. The window pattern is similar to a punched window or curtain wall, and there is extensive window coverage on the majority of the building.

There also appears to be open rooftop areas that could be converted into private or shared open space.
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8500 Wilshire Blvd
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 Built: 1963
 Renovated: 2008
 Class Rating: Class A
 Floor Area: approximately 210,021 SF
 Existing tenants: a construction company, a cosmetic spa, a dental office, an audiologist office, and medical offices.
 CoStar Rating: 3-stars out of 5 stars
 Other Conditions: This building has been identified as potentially historic, which means that it may qualify for use of tax incentives and more flexibility with zoning and building code requirements. This building is a podium style, with ground story retail spaces along the entirety of the property area, and podium parking areas above, and an office tower with a narrower footprint. The office tower is in the shape of a “T”, which provides more window coverage, and opportunities for the addition of balconies on the corner spaces. The podium is uniquely helpful for conversion into residential uses because the areas on top of the podium can be used for open space amenities, including a pool area, gym, lounge, etc. In addition, the podium parking will provide sufficient parking resources for residents. _______________________________________________________________ City of Beverly Hills General Plan
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8530 Wilshire Blvd
 Built: 1959
 Renovated: 2002
 Class Rating: Class B
 Floor Area: approximately 47,872 SF
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 Vacancy Rate: approximately 33% of the total building area  Existing tenants: a law firm, a permanent makeup service, a visa application service, and medical offices.
 CoStar Rating: 3-stars out of 5 stars
 Other Conditions: This building has been identified as potentially historic, which means that it may qualify for use of tax incentives and more flexibility with zoning and building code requirements. This building has a narrow, oblong rectangular shape, with a regular window pattern on all sides not directly abutting another building. The building has an attractive façade with the windows projecting slightly, which could allow these areas to be converted into balconies. _______________________________________________________________ 8671 Wilshire Blvd

 Built: 1964
 Renovated: N/A
 Class Rating: Class B
 Floor Area: approximately 50,596 SF
 Vacancy Rate: approximately 44% of the total building area  Existing tenants: an architectural firm, a mortgage company, a real estate investment firm, various retail companies, an insurance company, a marketing agency, and a radiology laboratory.  CoStar Rating: 2-stars out of 5 stars
 Other Conditions: This building has been identified as potentially historic, which means that it may qualify for use of tax incentives and more flexibility with zoning and building code requirements. This building is very narrow with a rectangular shape, and has residential City of Beverly Hills General Plan
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characteristics, with an attractive tiled façade facing Wilshire Blvd.

The building has three levels of podium parking, with offices above.

The podium area could be used to provide parking for residents, or could also be converted to additional residential and shared amenities. There is sufficient window coverage, and areas that could potentially be converted to balconies.
_______________________________________________________________ 8730 Wilshire Blvd
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 Built: 1963:
 Renovated: 1985
 Class Rating: Class C
 Floor Area: approximately 56,903 SF
 Existing tenants: law firms, a radiologist office, a water generator business, entertainment companies, non-profit organization offices, and a brokerage company.
 CoStar Rating: 3-stars out of 5 stars
 Other Conditions: This building has been identified as potentially historic, which means that it may qualify for use of tax incentives and more flexibility with zoning and building code requirements. This building’s window pattern is a ribbon window pattern, which has been identified as a window pattern that is favorable for residential uses, and provides extensive window coverage along multiple building sides. The building is generally a narrow rectangular shape, with a curved end along the façade facing Wilshire Blvd. In addition, this building is located adjacent to a surface parking lot, which could be acquired and consolidated to create a unified development. _______________________________________________________________ City of Beverly Hills General Plan
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8820 Wilshire Blvd
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 Built: 1952
 Renovated: N/A
 Class Rating: Class B
 Floor Area: approximately 28,217 SF
 Existing tenants: a bank, a commercial real estate agency, a fashion brand, a public relations firm, a marketing agency, and entertainment companies
 CoStar Rating: 3-stars out of 5 stars
 Other conditions: This building has an L-shape, with surface parking on the remainder of the property. The window pattern is similar to a punched window, which has been identified as a pattern that is favorable to residential uses. The L-shape provides opportunities for other uses to be developed on the surface parking area, including open space amenities, such as a courtyard, a swimming pool, and landscaped areas. In addition, the L-shape allows more window coverage along each of the sides of the buildings and allows for potential additions of balconies.
_______________________________________________________________ 9171 Wilshire Blvd
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 Built: 1968
 Renovated: 1997
 Class Rating: Class A
 Floor Area: approximately 111,806 SF
 Vacancy Rate: approximately 53% of the total building area  Existing tenants: a real estate agency, a financial investment firm, an accounting firm, an entertainment company, an
escrow company, an engineering firm, and a travel agency.  CoStar Rating: 3-stars out of 5 stars
 Other Conditions: This building has been identified as potentially historic, which means that it may qualify for use of tax incentives and more flexibility with zoning and building code requirements. This building has a U-shape, which starts after the 3rd floor. This shape provides extensive window coverage on each side of the building, and also allows for the re-use of the interior space for open space amenities, and other building amenities. The interior areas could also be developed with private open space and balconies, and it appears that the rooftop also has available space for
amenities. The façade provides a regular ribbon window
pattern, which has been identified as a pattern that is favorable to residential uses. The building’s first floor has a sunken retail space, which could easily be converted into other commercial uses.
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9350 Wilshire Blvd
 Built: 1957
 Renovated: 1999
 Class Rating: Class B
 Floor Area: approximately 61,032 SF
 Vacancy Rate: approximately 23% of the total building area City of Beverly Hills General Plan
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 Existing tenants: an escrow company, a bank, a real estate investment firm, various business offices, a jeweler, a media and production company, a law firm, and a therapist office.  CoStar Rating: 4-stars out of 5 stars
 Other Conditions: This building has an L-shape, with an open space area above a portion of the first floor in the interior area of the “L” and surface parking areas. The L-shape provides extensive window coverage on each side of the building, and the interior areas of the L-shape can be repurposed for open space amenities and other building amenities. The surface parking areas could also be redeveloped with further
amenities or could be used to create a “U” shaped building to provide additional housing and building area. The façade is attractive, and has a window pattern similar to a punched window, which can be converted easily into residential style windows.
9454 Wilshire Blvd
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 Built: 1971
 Renovated: 1989
 Class Rating: Class A
 Floor Area: approximately 174,490 SF
 Existing tenants: a bank, an escrow company, law firms, a marketing agency, a plastic surgeon’s office, a real estate agency, a weight loss company, and a mortgage company.
 CoStar Rating: 4-stars out of 5 stars
 Other Conditions: This building has been identified as potentially historic, which means that it may qualify for use of tax incentives and more flexibility with zoning and building code requirements.

This building has a residential character, and has a regular window pattern. There is extensive window coverage on multiple sides of the building with a ribbon window, which is favorable to residential uses. The building appears to have some rooftop open space amenities, which could be used for residential purposes. _______________________________________________________________ City of Beverly Hills General Plan
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9460-9470 Wilshire Blvd
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 Built: 1959
 Renovated: 1990
 Floor Area: approximately 94,586 SF
 Class Rating: Class B
 Existing tenants: a bank, an entertainment company, a financial investment firm, an auto dealer’s office, a cosmetic spa, and a talent agency.
 CoStar rating: 3-stars out of 5 stars
 Other Conditions: This building has been identified as potentially historic, which means that it may qualify for use of tax incentives and more flexibility with zoning and building code requirements.

This building is a podium style, with a one-story structure across the entire footprint of the property, and a tower structure with a narrower footprint. The podium is uniquely helpful for conversion into residential uses because the areas on top of the podium can be used for open space amenities, including a pool area, gym, lounge, etc. In addition, the podium parking will provide sufficient parking resources for residents. There are three tower portions, with one taller rectangular portion in the middle, and two slightly shorter rectangular portions on each side. This provides ample window coverage along each side, and could also allow the addition of balconies at the corners of the buildings. One portion of the tower also appears to have open space amenities on the rooftop area.

The windows have a ribbon window pattern, which has been identified as favorable to residential uses.
_______________________________________________________________ 9536-9560 Wilshire Blvd
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 Built: 1935
 Renovated: 1984
 Class Rating: Class A
 Floor Area: approximately 181,711 SF.
 Vacancy Rate: approximately 67% of the total building area  Existing tenants: a marketing agency, luxury retailers, a financial advisory firm, a capital investment firm, and a jeweler.  CoStar Rating: 3-stars out of 5 stars
 Other Conditions: This building has been identified as potentially historic, which means that it may qualify for use of tax incentives and more flexibility with zoning and building code requirements.

This building has a residential character to its façade, with existing retail stores on the first floor, and office spaces above. The building has an oblong rectangular shape, which provides greater opportunities for window coverage. The windows are similar to a punched window pattern, and have extensive windows along each side. There is one portion of the building that has a shorter height than the rest, which creates a valley feature on the rooftop.

This area could be repurposed for open space amenities and other building amenities.

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Support for the Adaptive Reuse / Conversion Trend
While there are many factors that may contribute to a decision for a property to either redevelop a property or adaptively reuse it, there are some distinct conditions that may make adaptive
reuse/conversion projects more attractive options. These factors are briefly discussed below.

Legally Nonconforming Height - One reason that conversion or adaptive reuse of an existing commercial building might be an attractive option for a property owner is that there are many existing buildings in the Mixed Use Overlay Zone that have legally nonconforming heights, especially on Wilshire Boulevard. Since the current code regulations would not permit these building with legally nonconforming height to be built to the same height if they were to be redeveloped, there is a built-in incentive for the conversion of these buildings since they may be more valuable to maintain rather than demolish and re-build.

Potentially Historic Buildings- Additionally, some buildings constructed during the time period in which greater heights were permitted (around the 1950s-1980s) may be considered potentially historic structures. The conversion of these structures and the ability to request relief from certain Mixed Use Overlay standards could also help preserve historic building facades, and the historic fabric of the City.

In addition, if buildings become historic landmarks, they may use an entitlement called a Historic Incentive Permit to request further deviations from the code standards if needed. Historic buildings may also be eligible for certain tax incentives, such as the Federal Historic Preservation Tax Incentive, CA Historic Tax Credit, Mills Act, etc, and may be able to benefit from more flexible building codes.

Construction Impact – Since adaptive reuse does not involve the demolition of an existing building and construction of a new building on a site, but rather utilizes an existing building for a new use, there may be fewer impacts related to construction. These impacts could include length of construction, noise, traffic, vibrations, dust, etc, which may be diminished depending on the extent of rehabilitation needed for the conversion. In addition, since the building already exists in the community, there could likely be less opposition to a project from neighbors or those who may be impacted by
construction.

Sustainability – Adaptive reuse projects may be more environmentally sustainable because they do not involve ground-up construction and thus, create less demand for new building materials, etc. Many City of Beverly Hills General Plan
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buildings that could be adaptively reused within the City of Beverly Hills are also located in close proximity to transit, which could help reduce overall greenhouse gas emissions related to work commutes and other vehicle trips. In addition, adaptive reuse projects might result in the rehabilitation of existing buildings to upgrade certain systems such as window systems, insulation, and HVAC, which could result in a more energy-efficient building.

Market Conditions
 Office demand: The market conditions are ripe for conversions of existing commercial buildings, especially with the reduction of demand for commercial office space after the COVID-19
pandemic. For example, in the Beverly Hills market, office vacancy trends have shown significant increases in the past few years amongst all different types of office buildings: from 2018 to the present, vacancy rates for Class A office buildings have increased 6 percentage points, from 11% to 17%, and rates for Class B office buildings have increased 10 percentage points, from 6% to 16%. However, vacancy rates for Class C office buildings have mostly remained steady in this period at 7-8%.
 In a CoStar report from August 2023 with statistics for the Beverly Hills submarket, the current office average vacancy rate is at a record level of 17.2%. The submarket also presently has 3.2% of its office space available for sublease, above the 2.7% metrowide average. For 4-5-star rated buildings, the vacancy rate is 17.1%, for 3-star rated buildings, the vacancy rate is 19.2%, and for 1-2-star rated buildings, the vacancy rate is 11.3%. Occupancy losses continue to be considerable, with the past 12 months
experiencing net absorption of -88,000 SF. Additionally, the percentage of office space available for sublease in the submarket is above metrowide averages. Vacancy rate changes have historically been around a 10.2% average, however, the forecasted average vacancy rate is 20.8%, and the submarket vacancy rate is expected to rise further in the next several years.

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 Effects of remote work: In addition, physical office occupancy as a whole in the US has been low since the start of the pandemic in 2020, with only a gradual return to 47% occupancy by November 2022.

According to a study published November 27, 2022 called “Work from Home and the Office Real Estate Apocalypse” that looked at the pandemic’s effect on the commercial office sector, the increase in remote working during the pandemic led to significant decreases in lease revenues, occupancy, lease renewal rates, and market rents.

The study looked at lease-level data for 105 office markets throughout the US from January 2000 to May 2022, and showed a 16.89% decrease in lease revenue between December 2019 to May 2022, and the quantity of newly-signed leases dramatically dropped from 253 million square feet per year before the pandemic to 59 million square feet in May 2022. The results also showed a direct correlation between a company’s work from home policy that results in a lower demand for office space. The study also found that higher quality office buildings were somewhat buffered from the decrease in demand for commercial office space, while lower quality office buildings are becoming potential asset risks.

Beverly Hills Mixed Use Development Trend
In addition to the mixed use development trend data for other similar jurisdictions, the City has a history of mixed use developments along Wilshire Boulevard and towards the western edge of the City prior to the adoption of the Mixed Use Overlay Zone. The following projects were approved through an extensive entitlement process, which consisted of a multi-year approval review process, legislative amendments, and costs (environmental document (EIR) preparation, entitlement application fees, etc). These projects show that even before mixed use developments were permitted uses, property owners were interested in developing mixed use projects that are City of Beverly Hills General Plan
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consistent with the densities and heights currently permitted under the Mixed Use Overlay Zone. This supports the likelihood that a property owner would take advantage of the Mixed Use Overlay Zone because the creation of these regulations now allows a quicker and less costly review process for these types of projects. The projects include:
 9908 S Santa Monica – 4-story, 17-unit mixed use (condo) building and ground floor commercial (under construction)  8600 Wilshire – 5-story, 18-unit mixed use building including 2 moderate rate income units and ground floor commercial
(constructed)
 9200 Wilshire – 6-story, 54-unit mixed use building with ground floor commercial (constructed)
Blu Apartments Adaptive Reuse Case Study – As a case study example that supports the adaptive reuse of commercial office buildings to residential uses is the Blu Apartments located at 8601 Wilshire Boulevard. This project was required to apply for several entitlements that would allow the conversion of an existing legally nonconforming office building, the project was approved by the Planning Commission and the City Council in 2003.

The project converted an 11-story office building totaling approximately 44,550 square feet into 37 residential rental units, with a ground floor retail space of approximately 650 square feet on a 12,920 SF lot. The Blu Apartments adaptive reuse project has a residential unit density that is higher than the current mixed use density (calculated based on lot area), which would yield 23 units. The City is currently processing a Zone Text Amendment to instead base residential unit density on the existing floor area of a building being converted. The conversion density that was reviewed by the Planning Commission in September 2023 and will be reviewed by the City Council in 2023 would yield 63 dwelling units on the Blu Apartments site. Even under the density used for the Blu Apartments project, the project is proof that conversion projects will yield greater residential unit density on project sites in the MU Overlay Zone, and are financially feasible given that this density exceeds that which was constructed in this project. Therefore, the MU Overlay Zone will allow (upon City Council adoption of the proposed change) a density of units in adaptive reuse/conversion mixed use projects that is greater than the density allowed for this project. This project shows that conversion of existing commercial buildings may be an attractive option for property owners, and that this can be a financially feasible undertaking within the City of Beverly Hills, given that the density that City of Beverly Hills General Plan
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will be allowed for adaptive reuse/conversion mixed use projects will exceed the density allowed in this completed project.

Downtown LA Adaptive Reuse Case Study – Since 1999, the City of Los Angeles has allowed adaptive reuse projects in the downtown area.

This program has largely been considered a success, as about 1/3 (12,000/37,000 units) of the new housing units created in Downtown LA were created through adaptive reuse. This program allowed buildings constructed before 1974 to be converted through a ministerial approval process. The maximum number of units were calculated through the use of a minimum unit size of 450 square feet, and an average unit size requirement of 750 square feet, with no upper density limit. In addition, there were no parking requirements, an additional story of height was allowed by-right (to allow the use of rooftop space, etc.), mezzanine floors that did not exceed 1/3 of the floor area of the space below were allowed by-right, and flexible interpretations of building codes were applied. In order to further incentivize adaptive reuse projects in LA, the Planning Department is currently in the process of updating the adaptive reuse ordinance, which proposes certain changes, including: extend eligibility for adaptive reuse to buildings constructed before 2008, to remove the minimum unit size and average unit size requirement, to allow the expansion of rooftop space and the use of basement area to be exempted from FAR limits, and to expand the scope of reuse building typology such as the use of parking structures for conversion.

Other Site and Building Conditions
o Other notable conditions that can help make an existing site more suitable for an adaptive reuse project would be existing open space areas or areas that are not built up and can be converted to open space, existing balconies or rooftop areas that can become amenities for tenants, and potentially historic status, which can be helpful if the building can qualify for tax incentives or a Historic Incentive Permit (HIP) that allows for deviations from code regulations if the building is a local landmark.
o Another helpful condition is podium parking in which the first few above ground levels of the building are constructed for parking. These levels can also be converted into residential uses (there is nothing in the BHMC that would preclude the use of the conversion section to apply to parking areas as well – including that there would be no parking required for many sites located in the Mixed Use Overlay Zone due to AB 2097), and have been counted towards the floor area City of Beverly Hills General Plan
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conversion calculations if the parking areas were known from building permit records.
o The majority of buildings on this list also have either a Class A or B rating. Since these buildings currently have the highest office vacancy rates in the Beverly Hills submarket, this quality makes them more likely to be redeveloped. Class C office vacancy rates may remain more stable due to the fact that these have lower leasing rates. However, Class C buildings in the long term may have higher vacancy rates as compared to Class A or B buildings, given that they are older buildings with less modern amenities or located in less desirable locations (are not as close in proximity to amenities).

Tab 3: Developer Interest List
The City has a number of sites on which there is known developer interest, but the actual project has not yet been submitted. This means that the sites inventory counts these sites per the default mixed use overlay zoning, and counting towards low or moderate income categories as appropriate per the default density requirement. One item to note is that because 9740 Wilshire is interested in combining the site with 9754 Wilshire, these combined sites become over 1/2 acre, and so the units are counted towards the low income category.

Similarly, 20 N La Cienega Blvd (two parcels) and 38 N La Cienega Blvd are intended to be combined and will be greater than 1/2 acre, and so will be counted towards the low income category.

Table C-3 Developer Interest List
208 N Crescent Drive 4-story, 10-unit apartment (1 very low income unit)
Projects with Multi-Family
Housing Under ReviewAddress
Lower Moderate Total Inserted Cells
Inserted Cells
Inserted Cells
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224-256 Clark Drive 55-unit Congregate Senior Housing
project
332140 S. Doheny Drive Development
Plan Review,
Density
Bonus 5-story,
9 units (1 very
low income
unit)39
0 39
5520 N La Cienega Blvd
(Parcel 1)
5-story, mixed
use building
with 105 units
(11 very low
income
units)10
0 10
Inserted Cells
Inserted Cells
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444-446 N Oakhurst Drive20 N
La Cienega Blvd (Parcel 2)
Preliminary
Housing
Application -
5-story, 27-
unit multifamily
building (3
very low
income
units)10
0 10
227-231 N. Swall Drive38 N La
Cienega Blvd
6-story 18-
unit multifamily
building19
0 19
227 Tower Drive419 S
Robertson Blvd
New 5-story,
10-unit
building (1
very low
income
unit)0
34 34
96008555 Wilshire Blvd Specific Plan
request to
allow a new
6-story office
building, two
new 6-story
multi-family
residential
buildings
with a total
of 70 units,
and the
rehabilitation
of the historic
Saks Fifth
Avenue
building for
various
commercial
uses0
35 35
9740 Wilshire Blvd 24 0 24
9754 Wilshire Blvd 40 0 40
TOTAL 142 69 211
Inserted Cells
Inserted Cells
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Concept Review Applications Submitted
8800 Burton Way 5-story mixed use building with 20 units 244-256 N Clark Drive 6-story, 54-unit senior living facility 412 N Oakhurst Drive 50-unit multi-family building in BH and LA (along the border) (1 very low income
unit)
137 S Rexford Drive 17-unit senior housing
132-144 Spalding
Drive
renovation of 132 Spalding and partial
demolition/new construction of 3-story,
5-unit multi-family building on 144
Spalding
8801 Wilshire
Boulevard
6-story, 38-unit mixed use building (4 very
low income units)
The following is a list of recently approved (from 2019 to 2022) entitlements for projects that include housing units, and the number of units included:

Approved Projects With Housing Units (2019-2022)
9850, 9876, 9900, 9988
Wilshire Blvd
340 units
9908 S Santa Monica Blvd 17 units
149-159 S Maple Drive 29 units
457 Oakhurst Drive 6 units
9384 Olympic Blvd 1 unit
340 S. Rexford Drive 3 units
152 S. Camden Drive 4 units (conversion to
condominium)
Tab 4: Approved Projects
Tab 4 of the sites inventory and Table C-2 summarizes residential developments that have received some form of approval and will become available for occupancy during the planning period. The income levels for these projects are based upon the expected sales prices or rents.

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Table C-4 Approved Projects
Project / Location
Income Category
VL Low Mod
Abov
e
Mod Total
Net
New
Units
208 N. Crescent Drive 1 9 10 9
250 N. Crescent Drive 1 7 8 8
332 N. Doheny Drive 1 8 9 8
55 N. La Cienega Blvd 11 94 105 105
154-158 N. La Peer Drive 16 16 14
149-159 S. Maple Drive 4 2 23 16 16
457 N. Oakhurst Drive 1 6 6 4
425 N. Palm Drive 20 20 2
340 S. Rexford Drive 3 3 3
462 S. Rexford Drive 7 7 1
9900-9908 S. Santa Monica Boulevard 25 25 25
227 Tower Drive 1 8 9 8
8600 Wilshire Boulevard 2 16 18 18
9200 Wilshire Boulevard 54 54 54
9876 Wilshire Boulevard 140 140 140
9900 Wilshire Boulevard 193 193 193
Total Units 20 2 2 629 653 608
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Tab 5: Submitted Projects
The City also has a number of projects under review at this time that are either multi-family or mixed-use projects, for which entitlement applications or concept review applications have been submitted.

These sites have been removed from the Tab 1 category of the sites inventory, so as to prevent duplication and because there is a known proposal on the site:

City of Beverly Hills General Plan
2021-2029 Housing Element
C-61| Page
Table C-5 Submitted Projects
Address Existing
Units
Proposed
Units
Very
Low Low Moderate
Market
Rate
Net
New
8800 Burton Way 0 25 3 0 0 22 25
244-256 N Clark Dr 13 55 0 0 0 55 42
232 S Doheny Dr 1 8 1 0 0 7 7
9937-9945 Durant
Drive 13 29 6 0 0 23 16
412 N Oakhurst Dr 6 9 1 2 0 6 3
444-446 N
Oakhurst Dr 22 27 0 5 6 16 5
227-231 N Swall Dr 4 18 2 0 0 16 14
137 S Rexford Dr 4 11 2 0 0 9 7
177 S Robertson
Blvd 0 59 3 6 6 44 59
105 N Robertson
Blvd 0 42 5 0 0 37 42
8811 Wilshire Blvd
9229 Wilshire Blvd 0 56 6 0 0 50 56
128 S Bedford Dr;
133 S Camden Dr;
9570, 9620, 9610,
9600 Wilshire Blvd
0 68 0 0 0 68 68
TOTALS 407 30 12 12 353 344
In addition, the following is a list of projects that include housing units for which building permits have been recently issued (from 2019 to 2020), and the net new number of units included:

Multi-Family Residential Building Permits Issued (2019-2020) City of Beverly Hills General Plan
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Table C-6 Multi-Family Residential Building Permits Issued (2019-2020)
340 S Rexford Drive 3 units
9384 Olympic Blvd 1 unit
425 N Palm Drive 20 units
250 N. Crescent Drive 8 units (1 very low
income unit)
9200 Wilshire Blvd 54 units
Currently, the City has approximately 105344 net new housing units that are being proposed in either the mixed use overlay zone, and an additional 58 net new units that have been submitted toor the City as part of mixed use projects that are in “concept review” (meaning that they are receiving preliminary comments from the City prior to formal submittal).multi-family zones. These projects demonstrate a significant interest in the market for the construction of new multi-family and/or mixed-use residential projects, and provides support that the sites in the land inventory are likely to be redeveloped in the future. Due to the fact that this is a newer code provision, staff has identified the need to proactively provide information to property owners regarding the new mixed use zoning. Programs related to proactive outreach and consultation with property owners regarding mixed use provisions have been included in the housing plan in order to address the identified barrier of lack of information/knowledge regarding the mixed use regulations.

Regulatory Incentives
Certain policies and programs in the Housing Plan include incentives that may help encourage the redevelopment or conversion of parcels in the sites inventory to mixed use or multi-family residential housing projects. These include the following:

Imp. 10.41 states:
 The City shall Process a zone text amendment to update the ADU regulations to ensure they are consistentdensity bonus code sections in conformance with Statestate law by 2023,2024 and will consider including changes to these regulations that will incentivize the construction of ADUs.
 The City will provide pre-checked ADU plans for use by creation of a menu of incentives to help streamline the public by 2025, and will revisitprocessing of density bonus projects
 Promote the ADU regulations in 2025 if production falls below the target set in the sites inventory analysis (in Appendix C).

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Imp 11.1 states:
 Perform outreach to property owners of parcels located in the mixed use overlay zone to notify them of the ability to redevelop properties with or convert existing buildings to mixed use developments. This outreach will include a mailed notice and advertising on use of density bonus incentives through the City’s social media accounts and website, and and through an updated Affordable Housing Brochure, which will be performedpublished by 20232024.

Imp. 10.4 states:
 Adopt an ordinance by the first quarter of 2024 that updates code to comply with state law, and allows by-right approval of ADUs in single family zones that exceed state required minimums, including:
o Explore increasing the by-right ADU size to further incentivize ADU creation
o Consider allowance for an increase in the permitted height up to the height of the primary residence for ADUs built above a garage in single-family zones
o Consider allowances for reduced setback requirements where privacy is not compromised
 Amend zoning code regarding ADUs in multi-family zones by 2025 to remove barriers to construction of units above existing garages and allowing additional height
 Adopt an ordinance by the end of 2024 to allow an additional ADU beyond state law requirements on single-family residential properties that are at least 13,000 square feet in size and deed-restrict at least one ADU on such property as a rental unit
 Provide ADU plan(s) created and pre-plan checked by the City by the end of 2025
 Monitor ADU production each year, by affordability level. if ADU production is not on track to achieve an average of 20 new ADUs per year by the end of 2025, including the affordability targets, the City will take appropriate actions depending on the magnitude of the gap in ADU production. Actions may include any of the following:
o Revisit ADU regulations in 2026 to allow greater flexibility for ADU development
o Adopt an ordinance by end of 2027 to allow an additional ADU beyond state requirements and the additional local ADU allowance for properties greater than 13,000 square feet with a requirement to include a deed-restricted affordable ADU for at least a 5-year period; or other development incentives on properties greater than 13,000 square feet in area
o Adopt an ordinance by the end of 2026 to allow an additional ADU beyond state requirement on properties less than 13,000 square feet in size and deed-restrict at least one ADU on such property as a rental unit
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2021-2029 Housing Element
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o Identify additional sites or rezoning if necessary, to meet overall RHNA allocation
o Other strategies as appropriate to accommodate ADU capacity proportionate to any ADU production gap
Imp 11.1 states:
 Continue to provide adequately zoned sites for multi-unit housing in infill areas or commercial corridors in closer proximity to major transportation hubs for diverse housing types that include both rental and ownership opportunities through the implementation of the Mixed-Use Overlay Zone.
 Study and create additional incentives to promote the mixed use program, including promoting the ability to adaptively reuse existing commercial buildings, to facilitate the creation of new units in high opportunity areas.
 Continue to explore opportunities for the City to purchase or support the purchase of underutilized land for potential future affordable housing projects.
 Explore changes to the Mixed Use Overlay Zone regulations, including to allow the creation of work-live units.

Imp. 11.2 states:
 Incentivize the development of at least 250 units of senior housing by providing the following:
o Flexible development standards (reduced parking requirements, modified setbacks, etc.)
o Density bonuses
o City support in affordable housing funding applications (priority to those that support deeper targeting to ELI households)
o Deferral/reduction in development fees
o Direct financial assistance through Housing Trust Fund o Project entitlement assistance
Imp 12.1 states:
 Replacing the current density calculation for multi-family projects in the Zoning Code with simplified units per acre measurement  Reduce minimum unit size for multi-family buildings
 Modifying development standards for single-lot multi-family projects  Allowing greater flexibility in the type and location of multi-family parking
 Amending the code to clarify that the same number of units can be rebuilt on properties that have more units than currently would be allowed
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 Simplify modulation requirements for multifamily projects by 2025  Create an adaptive reuse program by 2028 to more easily allow the conversion of existing commercial structures to residential uses, especially existing legally nonconforming hotels in residential areas.  Amend code sections 10-3-12.5 and 10-3-12.8 related to incentives for construction multiple-family housing for the elderly and disabled and multiple-family congregate housing for elderly and disabled persons to ensure code provisions are not inhibiting such development  Adopt objective design standards for multi-family housing projects and create materials for multi-family applicants that clearly state design standards by 2026
 Consider an ordinanceAdopt code changes to streamline the approval process to allow Director-level approvals for Architectural Review of multi-family housing and mixed use projects with affordable housing; bring this topic forward for discussion by the Planning Commission by 2026.2024
Adopt code changes to create specific and objective findings tied toImp. 12.2 states:
 By 2026, the City shall conduct a Citywide fee study, and consider the adoption of modified development fees of objective design standards for Architectural Review approval of multi-family and mixed use projects
 Providing additional incentives for workforce housing over and above those contained in the provisions of the State Density Bonus  Periodically update the adaptive reuse program through 2028 to more easily allow the conversion of existing commercial structures to residential uses, including existing legally nonconforming hotels in residential areas
 Amend the zoning code to remove constraints that include a certain percentage of may exist related to the redevelopment of commercial shopping centers into mixed use developments  Review the mixed use overlay zone regulations by 2024 to assess how these regulations have been utilized by projects, and to determine whether further code changes are necessary to encourage housing and meeting housing production targets. The City will commit to funding a study with a budget of at least $250,000 for FY 2024-25 to provide recommendations for potential changes to the mixed use overlay zone
 Based on the results of the mixed use overlay zone study conducted in 2024, the City will further modify the mixed use overlay zone regulations, which could include:
o Changes to the mixed use regulations to address barriers to the utilization of the mixed use standards
o Increases to density and height on specific sites located within ¼ mile of a major transit stop
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o Expansions the mixed use overlay zone area to other commercially zoned areas of the City to accommodate any unit shortfalls  Amend the mixed use overlay zone regulations related to conversion/adaptive reuse projects to clarify that such projects may calculate density with the use of the minimum unit size of 500 square feet by the end of 2023
 If the production of housing units through adaptive reuse is not on pace with the targets per the monitoring program by the end of 2026 to meet the overall production target, the City will take the following actions within 12 months:
o Will amend the zoning code to allow ministerial approval of adaptive reuse projects in the Mixed Use Overlay Zone that do not add any material height to the existing building
o Will modify the adaptive reuse regulations to allow the addition of mezzanine levels to existing buildings that are being converted o Amend the adaptive reuse regulations to provide more flexibility with regard to legally nonconforming uses and the location of uses within the building.
 If there is a shortfall of lower income (very low and low income) affordable housing (to be determined by the study).units by the end of 2026 as a result of any of the above identified affordable housing projects or the adaptive reuse program, the City will complete actions by the end of 2028 to accommodate this shortfall that may include but are not limited to:
o Identify additional sites that may accommodate lower income housing units, including other City-owned or City-controlled sites o Rezone sites to accommodate additional housing capacity, such as changing the allowable density on multi-family residential sites and/or mixed use overlay zoned sites
o Expand the mixed use overlay zone to include additional commercially zoned areas of the City
Imp. 12.2 states:
 Utilize an economic consultant to prepare a comprehensive Citywide fee study, including an evaluation of the economic benefit of providing waivers or reductions of certain taxes and fees including certain project fees for developments containing very-low, low- and moderate-income housing units, as well as for housing developed under the City’s modified standards for Multiple-family Residences for Elderly and Handicapped Persons (Deed Restricted) by 2026 City of Beverly Hills General Plan
2021-2029 Housing Element
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These policies and programs will further facilitate the redevelopment and conversion of parcels in the sites inventory to mixed use or multifamily projects.

Table C-4
Tab 6: City-Owned Site Projects
The following projects are City-initiated projects on sites that the City currently controls or will in the near future. The affordable housing units proposed on these sites are shown below and are counted towards the total summary of sites. The specific program actions and milestones are included in Implementation Program 10.6 of the Housing Plan.

Credit Union Site (9268-9298 W. 3rd Street)
The City currently owns three parcels with two buildings located at the northeast intersection of W. 3rd Street and Foothill Road. One building (approximately 19,000 square feet) was previously leased to an office tenant, but has been vacant since 2020 in anticipation of future redevelopment. The other building (approximately 1,900 square feet) is leased to the Beverly Hills Employee Credit Union, under a month-tomonth arrangement. The three parcels are often referred to as the “Credit Union Site”. The City is actively working towards the development of this site with an affordable housing project. At their meeting on September 12, 2023, the City Council approved an exclusive negotiation agreement with the West Hollywood Community Housing Corporation in order to develop this site. The City believes the site could support 352 affordable housing units, which results in a density of 241.9 dwelling units/acre.

Gale Yard Site (8401-8423 Wilshire Blvd & 111 N. Gale Drive) The City currently owns the three parcels with frontage on Wilshire Boulevard and has just closed escrow to acquire the additional property to the north (111 N. Gale Drive). These sites are currently utilized by the Los Angeles County Metropolitan Transit Authority (MTA or Metro) as a staging yard for the construction of the La Cienega Boulevard station, as part of the Purple Line Extension project.

However, once the temporary construction easement for Metro’s use of the sites expires in late 2025 and early 2026 (different parcels have different agreements), the City will begin the process of redeveloping the site with a project that includes at least 125 affordable housing units, which results in a density of 107.6 dwelling units/acre.

The City has previously conducted community outreach in 2022 to obtain feedback regarding the community’s vision for the City of Beverly Hills General Plan
2021-2029 Housing Element
C-68 | Page
redevelopment of the sites. This feedback included a desire for workforce and affordable housing, along with other community uses.

The parcel furthest to the west is improved with the Clock Market Building, which is currently leased to O’Gara Coach, a luxury car dealership. The Clock Market Building is a local historic landmark (Landmark No. 31 on the City’s Local Historic Register), and the building is an L-shape with vacant surface parking on the remainder of the site. While the Clock Market building may not be contemplated for demolition and reconstruction as part of the redevelopment project, the building could accommodate uses such as retail or commercial space, such as a market or food hall use, and would be incorporated into the overall redevelopment site programming. The City is the current lessor of this building, and the lease with O’Gara Coach currently runs through June 2027. However, the City will continue to move forward with the site redevelopment plan while the site is occupied, as noted in Imp. 10.6.

Reeves Metro Site (9430 Wilshire Blvd)
The Reeves Metro Site is located at the southwest corner of the intersection of S. Reeves Drive and Wilshire Boulevard, and is comprised of one parcel. This site is currently owned by Metro and is the location of the subterranean construction of the Reeves (Rodeo Drive) Station, which is part of Metro’s Purple Line Extension project.

The site will eventually be improved with the station portal, and Metro anticipates that construction will conclude in late 2025 or early 2026.

The City has the right of first refusal to purchase this site once Metro finishes construction, and the City is actively discussing this option with Metro and intends to purchase it when it becomes available. The City anticipates that this site would be developed with 80 affordable lower City of Beverly Hills General Plan
2021-2029 Housing Element
C-69| Page
income housing units, which results in a density of 211.7 dwelling units/acre.

Table C-7 City-Owned Site Project
Site
Name APN Address
Site
Area
(SF)
Site
Area
(Acres)
Low
Income
Units
Moderate
Income
Units
Total
Units
Credit
Union
Site
4342010901
9268 W.
3rd
Street
51,283 1.17
352 0 352
4342010904
4342010900
9298 W.
3rd
Street
12,104 0.27
Total Site Area: 63,387 1.45
Gale
Yard
Site
4334022063 111 N
Gale Dr 6,500 0.14
125 0 125
4334022061
8401
Wilshire
Blvd
6,150 0.14
4334022900
8421
Wilshire
Blvd
18,630 0.42
4334022060
8423
Wilshire
Blvd
19,290 0.44
Total Site Area: 50,570 1.16
Reeves
Metro
Site
4331001900
9430
Wilshire
Blvd
16,461 0.37 80 0 80
COMBINED SITE TOTALS: 130,418 2.99 557 0 557
City of Beverly Hills General Plan
2021-2029 Housing Element
C-70 | Page
Tab 7: Approved Mixed Use Projects
Address Number
of Units
Residential & Commercial
Floor Area Total
Units per
Acre
9908 S. Santa Monica
Blvd.
25 90,005 SF 30
8600 Wilshire Blvd. 23 47,781 SF 39
9200 Wilshire Blvd. 54 157,630 SF 57
Source: City of Beverly Hills, 2021
Parcel listing by income category. Parcel-level data for the MU Overlay area (Table C-3, included as Exhibit A of this Appendix) lists parcels within the MU Overlay Zone that could potentially accommodate more than 5,000 new housing units based on
development standards. This total does not include density bonus units that would be allowed when affordable units are provided consistent with the City’s Inclusionary Housing Ordinance. For each parcel, the income category is shown consistent with criteria established in State law. Because the allowable density in the overlay is higher than the “default density” of 30 units/acre, sites are considered suitable for lower-income housing unless other factors apply, such as a restriction on small sites, discussed below.

Small sites. In determining site capacity, State law provides that sites smaller than ½ acre are not deemed adequate to accommodate lower-income housing need unless the locality can demonstrate that sites of equivalent size were successfully developed during the prior planning period for an equivalent number of lower-income housing units as projected for the site or unless the locality provides other evidence that the site is adequate to accommodate lower income housing. Although no small sites (i.e., less than 1/2 acre) are listed in the inventory as satisfying lower-income need, it should be noted that most of the sites within the MU Overlay could be consolidated with one or more adjacent parcels to create building sites of at least ½ acre.

Sites used in a prior planning period. None of the sites in the MU Overlay were relied upon to satisfy the RHNA allocation in a prior planning period.

Potential for displacement of existing residents. There are currently no residential uses in the MU Overlay area; therefore, no existing residents would be displaced as a result of mixed-use development in this area.

Realistic capacity of non-vacant sites. State law10 requires that for non-vacant sites, the inventory must include a description of the existing use of each property, and if a site is owned by the city or county, the description shall also include whether there are any plans 10 Government Code Sec. 65583.2(b)(3)
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to dispose of the property during the planning period. Information regarding existing uses on each parcel is provided in Table C-3.

The inventory must specify for each site the number of units that can realistically be accommodated on that site considering factors including the extent to which existing uses may constitute an impediment to additional residential development, the City’s past experience with converting existing uses to higher density residential development, the current market demand for the existing use, an analysis of any existing leases or other contracts that would perpetuate the existing use or prevent redevelopment of the site for additional residential development, development trends, market conditions, and regulatory or other incentives or standards to encourage additional residential development on these sites.11 In addition, when a city is relying on non-vacant sites to accommodate 50 percent or more of its housing need for lowerincome households, the methodology used to determine additional development potential shall demonstrate that the existing use does not constitute an impediment to additional residential development during the period. An existing use shall be presumed to impede additional residential development, absent findings based on substantial evidence that the use is likely to be discontinued during the planning period.12
Because development decisions are affected by a wide variety of factors over which cities have no control, including property owner objectives and general market conditions, it is unlikely that a high percentage of the parcels within the MU Overlay Zone would be developed with mixed-use projects during the planning period.

However, since the development potential of the overlay area is nearly three times the City’s RHNA allocation for the 2021-2029 planning period, the RHNA allocation can be satisfied through development of a portion of these sites.

Factors that constitute substantial evidence that existing uses do not constitute an impediment to additional residential development during the period include the following:
 The underlying zoning designation for the MU Overlay is Commercial, which does not allow residential use. Therefore, the MU Overlay creates significant new opportunities for residential development.  Development of residential units within the MU Overlay Zone does not require demolition and reconstruction because existing non11 Government Code Sec. 65583.2(g)(1) 12 Government Code Sec. 65583.2(g)(2)
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residential space can be converted to residential use at much lower cost than new construction.
 Existing commercial vacancies within the MU Overlay Zone generate financial incentives for residential development or conversion of existing non-residential space to new housing.
 Exceptionally high residential property values in Beverly Hills create significant financial incentives for residential development or conversion of existing non-residential space to new housing.  As previously discussed in the ‘Underutilized Sites’ section above, the existing land uses and site conditions have been closely examined, and sites that met the following criteria were not included in the inventory, as they were determined to be less likely to be developed:
o Parcels with existing commercial buildings that were more than 3 stories tall (not including parking levels that are above-ground) because such parcels may have a high improvement-to-land value ratio13 and therefore may not be as likely to be redeveloped due to their economic value, and some buildings may be taller than what is currently allowed under development regulations;
o Parcels with existing commercial buildings that were recently renovated or looked more modern (indicating they were constructed more recently) because such parcels may have a high improvementto-land value ratio and therefore may not be as likely to be redeveloped due to their economic value;
o Parcels with existing commercial buildings that contained medical uses, especially larger buildings and those containing surgery centers or are occupied by prominent medical groups (i.e. Cedars-Sinai, UCLA Health, etc) because such uses typically require expensive tenant improvements and therefore may not experience high turnover or vacancies as often;
o Parcels with existing commercial buildings that contained uses unlikely to be discontinued due to their rarity or the restrictions related to establishing this type of use, such as certain types of car dealerships and vehicle service centers, schools or educational institutions, gas stations, religious uses, etc.; and
o Parcels for which entitlements were recently approved or are under review because such site may be redeveloped in the future with a specific alternative project.
13 An improvement‐to‐land value (I/L) ratio looks at the value of any site improvements (such as any structures or construction) to the value of the land. Previous research by the University of California, Berkeley to identify potential infill development opportunities in California utilized an I/L ratio for commercial and multi‐family residential properties. The authors of that study noted that this methodology “…has a strong theoretical and empirical basis: urban parcels for which improvement values are less than land values are widely considered to be economically underutilized. Indeed, many, if not most, market‐rate infill housing projects are currently built on refill sites.” City of Beverly Hills General Plan
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 Similarly, parcels that were considered likely to be redeveloped or converted met one or more of the following evaluation criteria:
o Evidence of a lack of investment in the property, such as lack of maintenance, or lack of recent upgrades and improvements on the property because such conditions may indicate that a property has a lower improvement-to-land value ratio and therefore may be more likely to be redeveloped;
o For lease or for sale signs or advertisements online that indicate a higher rate of vacancies and/or turnover of spaces because this may create an economic incentive for property owners to explore redevelopment options for the property;
o Parcels with underutilized improvements, such as those with 1- or 2- story buildings (not including any above-ground parking levels) that do not cover the entire lot, and may include surface parking lots because these properties may have a lower improvement-to-land value ratio and therefore may be more likely to be redeveloped; o Large parcels that would not require lot assemblage in order for a developer to convert or redevelop the site, even if these parcels contain buildings that are greater than 3 stories because the adaptive reuse regulations in the mixed use overlay zone that allows existing commercial buildings to be converted to residential uses without complying with otherwise applicable multi-family zoning standards; o Parcels with existing commercial buildings that are higher than 3 stories, but have the potential to be converted to residential uses as a result of their regular floor plan development, and regular window patterns because such a layout may lend itself better to residential unit development; and
o Parcels that are narrow but located adjacent to other underutilized parcels that could be reasonably combined for one unified development because there may be a greater economic incentive to redevelop combined parcels.

Accessory Dwelling Units
Accessory dwelling units (“ADUs”) provide the third component of the sites inventory. Current State law allows two ADUs – one “standard” ADU plus one “junior ADU” on most single-family lots, and there are approximately 5,700 single-family detached housing units in Beverly Hills according to the California Department of Finance. Therefore, more than 10,000 ADUs could be built under current law. However, a conservative estimate of 150 potential ADUs during the 8-year planning period is based upon permit trends over the past five years, as shown below. Moreover, a total of 19 ADUs have been permitted City of Beverly Hills General Plan
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in 2021, and (as reported in the City’s General Plan Annual Report submitted to HCD), a total of 25 ADUs have been permitted in 2022, and a total of 26 ADUs have been permitted in 2023 (as of October 2023) demonstrating a further upward trend in ADU construction (an increase of more than 50% from last year).. The City has seen an uptick in inquiries regarding ADUs, especially since recently enacted state law has changed ADU regulations in the City to be more permissive than in the past. The City has noticed a greater number of inquiries and higher interest in ADU construction since such regulations have gone into effect, and Imp. Program 10.4 of the Housing Plan seeks to further encourage the production of ADUs, for example by considering more changes to zoning regulations to remove barriers to construction of ADUs, and conducting more outreach regarding ADU regulations. The City has already conducted a survey in September 2021 to gauge community interest in constructing ADUs and to help identify potential barriers to construction. In 2022, ADU webpage was created to provide information regarding ADU regulations, including a guide summarizing regulations. On March 10, 2022 and February 23, 2023, the Planning Commission held a study sessionsessions to discuss potential changes to the City’s ADU regulations. In addition, a community meeting was held on August 10, 2022 to discuss the potential changes to ADU regulations. The City plans to bring a draft ordinance to amend ADU regulations later in 2022, with new regulations becoming effective byby the end of 2023.

Table C-8 Projected Accessory Dwelling Units (ADUs)
YearVery
Low 2016Low
2017Mod
erate
2018Above
Moderate
2019T
OTAL
20 20
20 21
20 22
No. of ADU
Permits25
0 6
5 0 7 6
9 1951 25150
Projected ADUs: The ADUs projected here are based on the approved SCAG Regional ADU affordability analysis and the income distribution noted for LA County.

In addition, the City's ADU permitting data supports this estimate, with 6 permits in 2019, 9 permits in 2020, 19 in 2021, 25 in 2022, and 26 in 2023 (year to date).

Table C-9 Accessory Dwelling Unit (ADU) Permitting Information Year 2016 2017 2018 2019 2020 2021 2022
2023
(Year to
Date)
No. of ADU
Permits 0 0 7 6 9 19 25 26
Source: City of Beverly Hills, 2022
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Based on research compiled by the Southern California Association of Governments (SCAG),)14, it is estimated that the majority of future ADUs will be affordable to low- and moderate-income households.

Affirmatively Furthering Fair Housing
AB 686 requires a jurisdiction’s site inventory “…shall be used to identify sites throughout the community, consistent with…” its duty to affirmatively further fair housing.15 According to HCD’s AFFH guidance16, the sites inventory should assess whether future development anticipated on the sites listed “…will either further entrench or help to ameliorate existing patterns of segregation and/or exclusion of members of protected categories.”
Most of the new housing during the 2021-2029 planning period is expected to be built in the MU Overlay Zone in the central portion of the city (Figure C-1). The fair housing assessment contained in Appendix A shows that the entire city is designated “Highest Resource” in the TCAC/HCD opportunity map. In addition, the areas with the highest concentrations of racial minorities, households below the poverty line, and persons with disabilities are generally in or adjacent to the MU Overlay Zone. Therefore, the sites inventory addresses AFFH requirements by expanding housing opportunities at all income levels in high opportunity areas and in close proximity to locations where the highest numbers of protected categories of residents currently reside.
14 SCAG Regional Accessory Dwelling Unit Affordability Analysis 15 Gov. Code, §§ 65583.2, 65583, subd. (c)(10)(A), 8899.50 16 California Department of Housing and Community Development, Affirmatively Furthering Fair Housing Guidance for All Public Entities and for Housing Elements, April 2021 City of Beverly Hills General Plan
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Figure C-1
Mixed-Use Overlay Zone
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B. Financial Resources
The ability of the City to achieve its housing goals and objectives will, to a large extent, depend on the availability of financial resources for implementation. The two primary sources of funds – Community Development Block Grant (CDBG) and Community Assistance Grant (CAGF) – are currently used to support housing activities in Beverly Hills, with a third new source – Housing Trust Fund – which became available during the current Housing Element planning period in Fiscal Year 2016-17. Each of these sources is described in the following section.

1. Community Development Block Grant (CDBG)
Through the CDBG program, the federal Department of Housing and Urban Development (HUD) provides funds to local governments to fund a wide range of housing and community development activities for low-income persons. The CDBG program provides formula funding to larger cities and counties, while smaller cities (less than 50,000 in population) generally compete for funding that is administered by the County. Each year, Beverly Hills receives approximately $169,000 in CDBG funds through the Los Angeles County Development Authority.

These funds are used to support the City’s Handyworker Program (also known as the Residential Rehabilitation Program) for lower income tenants and homeowners, as well as the Senior Case Management programs.

2. Community Assistance Grant Funding (CAGF)
Through its annual Community Assistance Grant Funding application, the City allocates General Fund and Transit Occupancy Tax monies to a variety of service organizations that support the City’s commitment to the provision of a social service safety net for the most vulnerable members of the community. In FY 2020/21, City Council allocated approximately $1,417,500 in CAGF funds, with similar amounts allocated in prior years. The City utilizes its annual CAGF allocations to fund a variety of agencies and services, including:
 Step Up On Second - CLASP (Changing Lives and Sharing Places) Homeless Outreach Team
 Emergency shelter beds offered through PATH (People Assisting the Homeless)
 All Saints’ Homeless Assistance Program
 Jewish Family Services Senior Care Management Program  The Westside Food Bank
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 Saban Community Clinic
 The Maple Counseling Center
 Bet Legal Services
 Tower Cancer Research
 Chiron Center
 ETTA
 The Miracle Project
 Beverly Hills CPR
 Beverly Hills Active Adult Club
 Beverly Hills Education Foundation
 The Wallis
 Theatre 40
 Affordable Living for the Aging
 Jewish Free Loan Association
In FY 2011/12, the City used Community Development Block Grants (CDBG) funds to secure an apartment unit in an affordable supportive housing project for homeless individuals in Los Angeles provided through Step Up On Second.

3. Housing Trust Fund
Until recently, Beverly Hills has not had a Redevelopment Agency,an inclusionary housing in-lieu or commercial impact fees, and has therefore faced financial constraints in its ability to support the construction of affordable housing. To create a more viable funding source, the City created an Affordable Housing Trust Fund in FY 2016- 17 to be used to construct or help leverage construction of affordable housing. Through development agreements on three large scale residential and mixed use projects, the City has negotiated approximately $4.5 million in funding to be contributed to this Trust Fund. Currently only one of these developer contributions has been completed, for $1.5 million. These funds are restricted for the purpose of promoting the provision of affordable housing in the City of Beverly Hills, or as otherwise may be permitted by State law. The Policy and Management Department, in coordination with the Community Development Department, continues to explore options for using City property for the development of affordable housing. In addition, in December 2019, the City enacted an interim urgency ordinance that created inclusionary housing requirements for certain types of multi- City of Beverly Hills General Plan
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family residential developments. For projects with 5-9 multi-family units, an in lieu fee is available to be paid instead of constructing the required affordable unit(s). The in lieu fees collected through this requirement are deposited into the Affordable Housing Trust Fund, and are used to provide affordable housing in the City through a variety of methods (i.e. development of affordable units, subsidies for construction of affordable units, partnerships with affordable housing developers, etc.). This interim ordinance was subsequently made permanent in 2021.

The City will continue to explore new funding sources and programs, and opportunities to partner with the private sector and local nonprofit organizations. Examples of new funding opportunities include:
 The $93 million Golden State Acquisition Fund (GSAF) was launched in early 2013 by State HCD in partnership with seven Community Development Financial Institutions (CDFIs), providing developers and public agencies with access to favorably priced funds for developing and preserving affordable rental and ownership housing.  SB 391, The California Home and Jobs Act, is making its way through the State legislature, and would generate approximately $525 million annually for affordable housing by imposing a $75 recording fee on real estate documents.

4. COVID-19 Rent Subsidy
The City Council approved a Rent Subsidy program on September 15, 2020 in an effort to prevent tenants from being evicted during the COVID-19 Pandemic. The Rent Subsidy program was open to tenants who reside in multi-family rent-stabilized units, are at or below 80% AMI at the time of filing the application and can demonstrate that they were financially impacted by COVID-19. Priority was given to those households 65 or older and households with children registered in the Beverly Hills Unified School District. The City allocated $1 million from the City’s General Fund.

Qualified tenants will receive up to $1,000 a month for three months, for a maximum rent subsidy of $3,000. Rent Subsidy payments can be made for both back rent and prospective rent. Payment is made directly to the landlord once the landlord has agreed to continue to offer rental services to the tenant and not to evict the tenant for back rent. The City estimates it will be able to assist over 300 households.

Table C-610 below identifies a variety of Federal, state, local, and private resources that may be available to carry out housing activities in Beverly Hills.

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Table C-6: Financial Resources Available for Housing Activities Table C-10: Financial Resources Available for Housing Activities Program Name Description Eligible Activities

1. Federal Programs
Community
Development Block
Grant (CDBG)
Grants awarded to City on a
formula basis for housing and
community development activities
primarily benefiting lower income
households. Beverly Hills receives
approximately $169,000 annually in
CDBG funds from Los Angeles
County.

Housing
Rehabilitation
Public Facilities –
ADA Improvements
Public Services
Section 8 Rental
Assistance
Rental assistance payments to
owners of private market rate units
on behalf of low-income (50% MFI)
tenants. Administered by the Los
Angeles County Housing Authority.

Rental Assistance
HOME
https://www.hcd.ca.gov
/grants-funding/activefunding/home.shtml
Flexible grant program potentially
available to the City through the
County for housing activities
benefitting lower income
households.

New Construction
Acquisition
Rehabilitation
Relocation Costs
Tenant-based
Rental Assistance
Section 202
https://www.hud.gov/pr
ogram_offices/housing/
mfh/progdesc/eld202
Grants to non-profit developers of
supportive housing for the elderly.

Acquisition
Rehabilitation
New Construction
Section 811
https://www.hud.gov/pr
ogram_offices/housing/
mfh/progdesc/disab811
Grants to non-profit developers of
supportive housing for persons with
disabilities, including group homes,
independent living facilities and
intermediate care facilities.

Acquisition
Rehabilitation
New Construction
Rental Assistance

2. State Programs
Low-income Housing
Tax Credit (LIHTC)
https://www.treasurer.ca
.gov/ctcac/tax.asp
State and Federal tax credits to
enable sponsors/ developers of low
income rental housing to raise
project equity through the sale of
tax benefits to investors. 4% and 9%
credits available, with 4% credits
often coupled with tax-exempt
bonds.

New Construction
Acquisition
Rehabilitation
Multi-Family Housing
Program (MHP)
Deferred payment loans to local
governments, non-profit and for
profit developers for new
construction, rehabilitation and
preservation of permanent and
New Construction
Rehabilitation
Preservation
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https://www.hcd.ca.gov
/grants-funding/activefunding/mhp.shtml
transitional rental housing for lower
income households. Includes
separate Supportive Housing and
Homeless Youth MHP components.

Conversion of
nonresidential to
rental
Social services
within project
CalHome
https://www.hcd.ca.gov
/grants-funding/activenofunding/calhome.shtml
Grants to cities and non-profit
developers to offer homebuyer
assistance, including down payment
assistance, rehabilitation,
acquisition/rehabilitation, and
homebuyer counseling. Loans to
developers for property acquisition,
site development, predevelopment
and construction period expenses
for homeownership projects.

Predevelopment
Development
Rehabilitation
Acquisition
Down payment
assistance
Mortgage financing
Homebuyer
counseling
Transit-Oriented
Development
Program
https://www.hcd.ca.gov
/grants-funding/activefunding/tod.shtml
Funding for housing and related
infrastructure within one-quarter mile
of transit stations.

Capital
improvements for
qualified housing
developments,
including
enhancing
pedestrian or bike
access between
project and transit
Land acquisition
Affordable Housing
Innovation Fund
https://www.hcd.ca.gov
/grants-funding/activefunding/iigp.shtml
Funding for pilot programs to
demonstrate innovative, cost saving
ways to create or preserve
affordable housing. Under AB 1951
(2012), funding has been
appropriated to the following
activities:

Local Housing Trust Fund Grant
Golden State Acquisition Fund
Innovative Homeownership Program
Varies depending
on activity
Infill Infrastructure
Grant Program
https://www.hcd.ca.gov
/grants-funding/activefunding/iigp.shtml
Funding of public infrastructure
(water, sewer, traffic, parks, site
clean-up, etc) that supports higherdensity affordable and mixedincome housing in locations designated as infill.

Development of
parks and open
space
Water, sewer or
other utility
improvements
Streets, roads,
parking structures,
transit linkages,
transit shelters
Traffic mitigation
Sidewalk and
streetscape
improvements
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CalHFA Residential
Development Loan
Program
www.calhfa.ca.gov/mul
tifamily/special/rdlp.pdf
Low interest, short term loans to local
governments for affordable infill,
owner-occupied housing
developments. Links with CalHFA’s
Downpayment Assistance Program
to provide subordinate loans to firsttime buyers. Two funding rounds per year.

Site acquisition
Pre-development
costs

3. Local Programs
Community
Assistance Grant
Funds (CAGF)
Local funding to agencies who
provide support services to
community’s at-risk population
including the homeless, active and
frail elderly, disabled and lower
income residents. Annual funding
process through City Human
Relations Commissions and
Charitable Solicitations Commissions
- approximately $1,400,000
allocated in FY 20/21.

Public services and
housing for at-risk
populations
Affordable Housing
Trust Fund
Local fund in support of affordable
housing. Approximately $4.5 million
to be contributed through
development agreements to date.

Parameters for use
of monies are
established in the
City’s Municipal
Code Title 10,
Chapter 3, Section
4807
COVID-19 Rent
Subsidy Program
City Council approved Rent Subsidy
program in an effort to avoid
tenants from being evicted during
the COVID-19 Pandemic. The City
allocated $1 million dollars from the
City’s general funds.

Program open to
tenants in multifamily RSO units, at
or below 80% AMI
at the time of filing
the application and
they were
financially
impacted by
COVID-19. Priority
was given to those
households 65 or
older and
households with
children registered
in the Beverly Hills
Unified School
District.

4. Private Resources/Financing Programs
Federal Home Loan
Bank Affordable
Housing Program

Direct subsidies to non-profit and for
profit developers and public
agencies for affordable low income
ownership and rental projects.

New Construction
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Savings Association
Mortgage Company
Inc.

Pooling process to fund loans for
affordable ownership and rental
housing projects. Non-profit and for
profit developers contact member
institutions.

New construction of
rentals,
cooperatives, selfhelp housing,
homeless shelters,
and group homes
Freddie Mac HomeWorks-1st and 2nd mortgages
that include rehabilitation loan; City
provides gap financing for
rehabilitation component.

Households earning up to 80% MFI
qualify.

Home Buyer
Assistance
combined with
Rehabilitation
C. Administrative Resources
Described below are several non-profit housing providers active in Los Angeles and the Westside in particular. These agencies can serve as resources in helping to address Beverly Hills’ housing needs.

1. Menorah Housing Foundation:

Established in 1969 as a non-sectarian
non-profit corporation, Menorah Housing
Foundation (MHF) develops and
manages affordable rental housing for
very low income senior citizens. MHF
manages over 1,200 senior apartment
units in eighteen buildings on the Westside
and greater Los Angeles County. A
comprehensive MHF Service
Coordination program assists tenants to
remain independent in their own homes as long as feasible and creates a supportive environment for the many MHF tenants who live alone. MHF developed Beverly Hills Senior Housing in 1988 located on North Crescent Drive above Whole Foods Market, providing 150 rental units for very low income seniors. The building is currently owned by the City, but operated via a contract between the City and MHF.

2. Alternative Living for the Aging (ALA):

ALA is a non-profit organization that assists older people in housing alternatives. ALA operates several types of affordable senior housing including private apartments, communal living, and permanent supportive housing. ALA also administers a senior home sharing program, and conducts periodic informational workshops on the program for potential home providers and tenants.

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3. West Hollywood Community Housing Corporation (WHCHC):

WHCHC was founded in 1986 to buy, build, rehabilitate and manage affordable housing for lower-income people in West Hollywood and the greater Los Angeles area. WHCHC’s 18 apartment communities serve seniors living on fixed-incomes, people living with disabilities including HIV/AIDS, and low-income working households. Additional housing is targeting units to individuals and households which are either formerly homeless or at risk for homelessness. WHCHC maintains 2-3 projects in predevelopment and construction.

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D. Opportunities for Energy Conservation
As energy costs rise, increasing utility costs reduce the affordability of housing. Further, the potential environmental, economic, and public health benefits of achieving greater energy efficiency and the increased use of cleaner energy sources present significant opportunities for the City to promote sustainability and to reduce housing construction and operation costs. Greenhouse gases (GHGs) are components of the atmosphere that contribute to the greenhouse effect. The natural greenhouse effect allows the earth to remain warm and sustain life. Greenhouse gases trap the sun’s heat in the atmosphere, like a blanket, and influence the climate.

Examples of greenhouse gases include carbon dioxide, methane, nitrous oxide, and fluorinated gasses. The increased consumption of fossil fuels (wood, coal, gasoline, etc.) has substantially increased atmospheric levels of greenhouse gases. New housing development may contribute to greenhouse gas emissions, but careful site planning and design, and the selection of environmentally friendly building materials and equipment can significantly reduce these emission levels.

In recent years, California has experienced historic drought, heat waves, wildfires and significant rainfall. These significant weather patterns are attributed to climate change. California and many municipalities within the State are known to be leaders in protecting the environment such that many cities are members of the Climate Mayors National coalition where the goal is to demonstrate leadership on climate change through meaningful actions in their communities that accelerates climate progress. The City of Beverly Hills joined the Climate Mayors coalition in 2017.

California’s climate policy centers on the statewide emission reduction goals established in AB 32, SB 32, and Executive Order B55- 1-18. Since 2000, these laws have required state agencies to develop strategies to track and reduce the state’s greenhouse gas emissions across all sectors. To support the state’s greenhouse gas emission reduction mandate, the state publishes updated energy and green building standards that are enforceable by the City.

On September 27, 2006, AB 32 was adopted requiring the California Air Resources Board (CARB) to monitor and reduce greenhouse gas emissions. Subsequently, the state issued SB 32 which sets the GHG reduction goal by 40% by 2030 and EO B-55-18 that sets the state goal to be carbon neutral by 2045.

In addition, the City of Beverly Hills adopted a sustainability plan in 2009 that includes programs to encourage the use of clean energy City of Beverly Hills General Plan
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and reduction of air emissions. The City’s Sustainable Living Program was developed to promote and achieve sustainability by helping residents and businesses integrate environmental responsibility into their daily lives. The program offers three levels of recognition (Silver, Gold, and Platinum) to residents and businesses that have implemented practices in the three areas of energy, solid waste & sustainable purchasing and water. In 2020, the City began holding sustainability workshops to further educate the community on the relationship between sustainability and economics. As a result of the Sustainable City Plan, the sustainability programs led a Citywide effort to join the Clean Power Alliance (CPA) which is a community choice aggregator that provides renewable electricity to residents and businesses. Currently, the majority of the City is using fifty percent (50%) renewable electricity and allows residents and business to elect to utilize up to 100% renewable electricity at a comparable cost to Southern California Edison (SCE) renewable electricity product. In addition to providing renewable electricity, residents and businesses are eligible for energy efficiency programs and incentives through the CPA, which supplements existing SCE incentives. The City is also a member of the Energy Upgrade California (EUA) campaign. The EUA provides day to day energy efficiency tips for residents to follow especially on high demand days.

Over the years, the City has completed numerous sustainability projects that help reduce energy consumption, increase use of alternative fuel and improve the quality of life in the City. The City is currently working with the community to develop a new Climate Action and Adaptability Plan to identify and implement additional opportunities for carbon neutrality through development of best practices for municipal operations, building standards, renewable energy sources, and resource management.

These efforts will continue as the City is committed to protecting the environment and becoming more resilient to the effects of climate change and include the following:

1. Energy Efficiency Standards (Title 24, Part 6 and 11) California has a stringent energy efficiency code for new buildings and modernization projects, known as Title 24. California’s energy code began in 1976 and is designed to reduce wasteful and unnecessary energy consumption in newly constructed and existing buildings. The California Energy Commission updates the Building Energy Efficiency Standards (Title 24, Parts 6 and 11) every three years by working with stakeholders in a public and transparent process to ensure requirements are efficient, practical, and cost effective.

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The most recent edition of the 2019 California Energy Standards includes additional requirements for the installation of solar photovoltaics, and improvements for attics, walls, water heating, and lighting. Single-family homes built with the 2019 standards will use about 7 percent less energy due to energy efficiency measures versus those built under the 2016 standards. Once rooftop solar electricity generation is factored in, homes built under the 2019 standards will use about 53 percent less energy than those under the 2016 standards. This will reduce greenhouse gas emissions by 700,000 metric tons over three years, equivalent to taking 115,000 fossil fuel cars off the road.

The City continues to enforce the Energy Efficiency Standards for all residential and non-residential construction through its plan review and inspection programs.

2. Green Building Program
CALGreen is the first-in-the-nation mandatory green building standards code. In 2007, the state developed green building standards in an effort to meet the goals of AB 32, which established a comprehensive program of reductions of greenhouse gases.

The California Building Standards Commission updates CALGreen, the Building Energy Efficiency Standards (Title 24, Part 11), every three years by working with stakeholders in a public and transparent process to ensure requirements are efficient, practical, and cost effective.

In order to further promote the use of renewable energy and conservation of water, the City has amended the most recent edition of the 2019 CALGreen to include enhanced requirements for electric vehicle charging and water conservation.

The City continues to enforce CALGreen for all residential and nonresidential construction through its plan review and inspection programs. To encourage compliance, the City offers streamlined permitting for solar photovoltaic and electric vehicle charging installations.

3. Sustainable City Plan
Beverly Hills has adopted a number of innovative measures to address environmental sustainability including energy efficiency, environmental protection programs, water conservation programs, environmentally friendly procurement policies, and a waste recycling program that accepts food and green waste. In February 2009, the City adopted a Sustainable City Plan which builds upon this City of Beverly Hills General Plan
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foundation and enhances the livability of Beverly Hills by providing a reliable infrastructure system, safe and clean environment and providing excellent service to its residents and businesses. The Plan establishes guiding principles, goals, objectives and policies which address the following topic areas:
 Community Participation & Civic Duty
 Climate Protection & Air Quality
 Energy
 Water
 Land-use, Transportation & Open Space
 Materials & Waste
 Environmental & Public Health
 Sustainable local Economy
 Social Equity
The Sustainable City Plan provides an implementation framework along with a means of prioritizing the order in which policies and programs should be advanced in order to meet the goals. The Plan identifies the following next steps upon its adoption:
 Development of an implementation and monitoring program  Compilation of baseline information on City operations  Standardization of reporting
 Identification of measures
 Modification of city activities, operations and programs  Initiation of new activities, operations and programs  Monitoring, periodically reporting and modifying City activities, operations and programs
As a landowner, employer, building manager, fleet operator, consumer, and service provider, the City has both the opportunity and the capacity to bring about significant improvements in environmental quality. By integrating environmentally sustainable practices into City policies, procedures, operations, and fostering collaboration across City government, the Sustainable City Plan will work to protect and enhance the quality of life for present and future generations in the City. Leading by example, the Plan is designed to promote responsible management and effective stewardship of the City’s built and natural environments; transforming the City into a model government agency that is clean, healthy, resource-efficient, and environmentally conscientious.

Additionally, by calling for future improvements to City infrastructure, and new development projects to be designed for pedestrian and non-motorized mobility, implementation of the Sustainable City Plan will result in a street-level aesthetic that is walkable, with goods and City of Beverly Hills General Plan
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services necessary to daily living available a short distance from new housing. Ultimately, these infrastructure and site design changes will result in less reliance on automobiles and greater cost savings to the future occupants. Therefore, the Sustainable City Plan is not considered a constraint.

For example, the City is enjoying energy savings from the replacement of street and intersection lights with LED fixtures. The City is also working on a number of ongoing and new projects. This includes implementation of a Complete Streets Plan to address pedestrian, bicycle, transit, and automobile activity in the City, as well as developing the Burton Way Median into the City’s first Green Street complete with a water efficient garden that will preserve existing trees and public art pieces and will support the City’s overarching water conservation goals.

The City’s Sustainable Living Program was developed to promote and achieve a sustainable Beverly Hills by helping residents and businesses integrate environmental responsibility into their daily lives. Sustainable practices promote healthy communities, which in turn is beneficial to all. The program recognizes residents and business that have implemented practices in three areas: Energy, Solid Waste & Sustainable Purchasing and Water. The program offers three levels of recognition (Silver, Gold and Platinum) to help residents take the next step on their sustainability journey no matter where they start. In 2020, as part of the Sustainability Program, the City launched the inaugural Sustainability Workshop Series. The three workshops focused on circular economics (sustainability and economics), food waste reduction and water resources. The City invites residents and businesses to attend these informative sessions and make Beverly Hills a model of sustainability and resiliency.

In addition, the City is developing a Climate Action Adaptability Plan (CAAP) to support the state goals and the Paris Climate Agreement of 2050. The CAAP will provide a Citywide GHG inventory, of which, program target goals (metric ton reduction of carbon emissions) can be formulated through implementation strategies, timelines and community input. The CAAP process will also provide GHG reductions analyses from completed capital projects (i.e. energy efficiency projects), the use of renewable natural gas and electricity for City operations, and expected reductions from adopted plans such as the Complete Streets, sustainability programs and adoption of the CALGreen and Energy Codes.

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4. Energy Conservation Programs Offered through Local Utilities The City also participates in, and disseminates information on State and local energy provider rebates and other energy conservation programs for high-demand response, weatherizing and improving energy efficiency in existing homes.

The Clean Power Alliance (CPA) provides a variety of rate reduction programs by incentivizing energy conservation and using renewable electricity. The CPA’s Power Response Program allows residents and businesses to receive bill credits for enrollment and for participation during high demand days. High demand days are typically during the summer season and typically within the hours of 4:00 PM to 9:00 PM.

The CPA also offers a Solar-Battery and Net Energy Metering program.

Clean Power Alliance has partnered with EnergySage to help customers who are property owners make well-informed solar and battery storage decisions. Through the CPA’s online Solar Marketplace, customers can receive free custom solar and battery storage quotes from local, pre-screened installation companies. The CPA also has a Net Energy Metering (NEM) Program. The NEM program allows customers with rooftop solar or other eligible generating systems to receive bill credits and even cash back when their systems produce more energy than they use over a 12-month period. The CPA has a separate NEM rate and overall provides a higher incentive rate than investor-owned utilities. Customers may also choose what percent of their power usage will come from renewable energy sources.

Southern California Edison (SCE) provides a variety of energy conservation services under its Energy Savings Assistance Programs (ESA). These services are designed to help low-income households, senior citizens, permanently disabled, and non-English speaking customers control their energy use. SCE also provides discounted rate programs known as California Alternate Rates for Energy (CARE) or Family Electric Rates Assistance (FERA) programs. California Alternate Rates for Energy (CARE) reduces energy bills for eligible customers by about 30% and Family Electric Rate Assistance (FERA) reduces electric bills for qualified households by 18%.

The SCE Energy Saving Assistance Program can help income-qualified homeowners and tenants that are SCE customers, to replace older, working appliances and services with new, energy-efficient models at no cost. In addition to ESA services, SCE can also provide additional measures such as lighting, HVAC, and pool pumps for tenant City of Beverly Hills General Plan
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common areas such as hallways, corridors, and pool areas for multifamily residential buildings that participate in energy benchmarking, are deed restricted, and have at least 65% of the tenants meeting the ESA Program income eligibility.

The Southern California Gas Company (So Cal Gas) offers energy conservation services known as the Energy Savings Assistance (ESA) and Residential Direct Install Programs. This service provides energy improvements such as weatherization and energy efficient appliances for the homes or apartments of low-income families, provided they meet the federally-established income guidelines.

These services are provided to the low-income families free of charge while later being reimbursed by So Cal Gas.

Income-qualified SCE and So Cal Gas customers may be eligible for a bill discount through the California Alternate Rates for Energy (CARE) and Family Electric Rate Assistance (FERA) programs.

Discounts under CARE range from 20-30% and 18% under FERA.

The City’s water utility company also offers residents free water audits and has implemented a Water Savings Incentive Program that is available to residential large landscape customers. It provides financial incentives for customized water efficiency landscape projects. Rebates are provided for updating older toilets or urinals to water efficient devices. The City also offers free aerators for bathroom and kitchen sinks, as well as low flow shower heads.

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EXHIBIT A
Table C-3
Sites Inventory
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EXHIBIT B
Development Trend Data
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Deleted: City of Beverly Hills General Plan¶
2021-2029 Housing Element ¶
¶
¶
¶
Deleted: E-1 | Page¶
Appendix E: Public Participation
A. Surveys .............................................................................................. E-2 Housing Survey...................................................................................... E-2 ADU Survey ............................................................................................ E-4 B. Public Meetings .................................................................................... E-5

1. Planning Commission Study Sessions ............................................. E-5

2. Community Meetings ...................................................................... E-6

3. Outreach to All City Commissions.................................................. E-8 C. Outreach to Community Based Organizations .............................. E-9

1. Fair Housing Outreach ................................................................... E-10 D. Information Publication and Contact............................................ E-14

1. Housing Element Update Webpage ........................................... E-14

2. Housing Element Staff Contact .................................................... E-15 E. Summary of Comments Received ................................................ E-15 This Appendix contains information on the public outreach conducted during the Housing Element update. In order to reach the maximum number of interested community members, the City used various outreach strategies throughout the Housing Element update process. This included online surveys, public meetings that were held virtually (due to the COVID Pandemic), public study sessions held with the Planning Commission, and attending meetings with all of the City Commissions to encourage participation. All commission meetings are recorded, most are televised on local TV, and recordings are posted in the City website for future viewing. The City utilized more traditional methods of outreach, such as multiple direct mailers to every property owner and occupant in the City, newspaper noticing, as well as newer notification methods such as regular emails to interested parties, postings on the project webpage, and social media posts about the Housing Element update. The following is a summary of these efforts.

Deleted: A. Surveys E-2¶
Housing Survey E-2¶
ADU Survey E-3¶
B. Public Meetings E-5¶

1. Planning Commission Study Sessions E-5¶

2. Community Meetings E-6¶

3. Outreach to All City Commissions E-8¶
C. Outreach to Community Based Organizations E-9¶

1. Fair Housing Outreach E-15¶
D. Information Publication and Contact E-15¶

1. Housing Element Update Webpage E-15¶

2. Housing Element Staff Contact E-15¶
E. Summary of Comments Received E-18¶
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This Appendix contains information on the public
outreach conducted during the Housing Element
update. In order to reach the maximum number of
interested community members, the City used various
outreach strategies throughout the Housing Element
update process. This included online surveys, public
meetings that were held virtually (due to the COVID
Pandemic), public study sessions held with the Planning Commission, and attending meetings with all of the City Commissions to encourage participation. All commission
meetings are recorded, most are televised on local TV,
and recordings are posted in the City website for future viewing. The City utilized more traditional methods of
outreach, such as multiple direct mailers to every
property owner and occupant in the City, newspaper
noticing, as well as newer notification methods such as regular emails to interested parties, postings on the
project webpage, and social media posts about the
Housing Element update. The following is a summary of
these efforts. ¶
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A. Surveys
Housing Survey
An online survey was created to solicit interest and concerns from the community regarding the various topics related to housing. The survey was posted on the City’s website1, emailed to the interested parties list, community partners and organizations, and posted on the City’s social media outlets. The survey was available for about 3 months. A total of 91 individuals have participated in the survey, and the results have provided insight into the various perspectives of community members regarding how or in what ways the City should
accommodate future housing needs in the City. The full results of the survey are attached to this Appendix.

Highlights from the survey include the following:
 64% of respondents live in the City of Beverly Hills and 15% both live and work in the City
 61% of respondents have lived in the City for 21 years or longer  62% of respondents living the City reside in single-family homes  17% of respondents reside in single-family homes that have ADUs, or a guest house
 70% are very satisfied with their housing situation
 Respondents choose to live in Beverly Hills for the
quality/ambiance of the neighborhood, safety, and proximity to shopping and services
 Maintaining a diverse housing market, and maintaining the character of existing neighborhoods were deemed ‘very
important’
1A link to the survey was published on this page:
www.beverlyhills.org/housingelementupdate
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 Least important concerns were: ensuring that children who grow up in Beverly Hills can afford to live in Beverly Hills, providing shelters and transitional housing and
services for the homeless, integrating affordable housing to create mixed- income neighborhoods, and establishing programs to help at- risk homeowners keep their homes
 Housing types most needed in the City were:
condominiums and townhouses, followed by apartments
and single-family homes
 The majority of responses recommended allowing more
density in mixed-use zones and multi-family residential zones and near future metro stations, and allowing
residential in commercial areas
 Affordability and the process of building housing being too burdensome were deemed the most important housing
related issues in the City
Additional comments included:
 Focus on density around the future metro stations
 Maintaining the character and property values of the
neighborhood
 Limiting density
 More affordable apartments
 Improve the school system
 Preserving single-family zones
 Increasing racial and economic diversity in housing
 Increase mixed use along major thoroughfares
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ADU Survey
The City also released an ADU specific survey to further understand the desires of the community surrounding ADUs. This survey is meant to help inform future ADU policy and understand what regulatory changes and/or information would facilitate the development of ADUs in the community. This survey received approximately 80 responses.

The responses to the ADU survey are included as an attachment to this Appendix. The responses helped inform the programs and implementation strategies in this Housing Element document. The responses indicated that there is interest in the City to create ADUs on single-family properties and that a majority of those interested in creating ADUs would likely use those structures to house family members at a reduced rental rate.

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B. Public Meetings

1. Planning Commission Study Sessions
In order to commence discussion of the Housing Element Update, staff has periodically conducted study sessions with the Planning Commission on various Housing Element topics. Noticing for these meetings included publication of the meeting agenda on the City’s website, at the City Library, and at City Hall seven days prior to the meeting date as well as email notification to interested parties and those that have indicated interest in other housing related policy matters (approximately 500 email addresses). Due to the COVID-19 pandemic, these meetings were conducted virtually via
teleconference. Members of the public were able to provide written, oral, and video comments during the study session. The meetings were also broadcast live on the City’s website and local cable channel, and live audio of the meeting was available by dialing a phone number.
 August 13, 2020 Planning Commission Study Session
At this meeting, staff presented a study session for the Planning Commission to discuss an overview of the Housing Element Update process, the legal requirements for housing elements, the Regional Housing Needs Assessment (RHNA), and the
contents of housing elements.
 October 22, 2020 Planning Commission Study Session
At this meeting, staff presented a study session for the Planning Commission that provided additional context regarding the current status of housing in the City of Beverly Hills
 November 12, 2020 Planning Commission Study Session
At this meeting, staff presented a study session for the Planning Commission that provided an update on the RHNA process, and to discuss constraints and barriers that may currently exist for housing production and the various tools available to cities that can be further discussed as the Housing Element Update progresses.
 March 11, 2021 Planning Commission Study Session
At this meeting, staff presented a study session for the Planning Commission that provided another update on the RHNA
process, public outreach efforts, the expected Housing
Element Update timeline, and a discussion on potential
changes to the accessory dwelling unit (ADU) regulations as a component of the Housing Element Update efforts.

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 May 27, 2021 Planning Commission Study Session
At this meeting staff presented a study session for the Planning Commission and public to provide an opportunity to review the draft Housing Element document prior to submittal to HCD for review.

2. Community Meetings
Staff organized and hosted two community meetings to further educate members of the public and any interested parties about the Housing Element Update process and content. Noticing for these meetings included a mailed flyer to all property owners and occupants in the City (more than 10,000 property owners and 17,000 property owner mailings for each meeting), publication of advertisements in local newspapers of record, email to the interested parties list, and publication on the Housing Element Update webpage, City homepage, and City social media accounts
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website and local cable channel, and live audio of the meeting was available by dialing a phone number. Additionally, as part of the Housing Element implementation, staff hosted a community meeting focused on the topic of Accessory Dwelling Units (ADUs).  February 1, 2021 Community Meeting
At this meeting, staff provided a high-level review of the Housing Element requirements per State law, and discussed the
Regional Housing Needs Assessment (RHNA) allocation. Staff answered and discussed questions submitted by members of the public, and provided information on the Housing Element Update timeline, and future opportunities for participation.  April 28, 2021 Community Meeting
At this meeting, staff provided an overview of existing housing conditions in the City, potential housing constraints that could be identified if applicable to the City, and potential strategies to alleviate any identified constraints. In addition, staff discussed the anticipated timeline for the Housing Element Update and other opportunities for the public to get involved in this process.

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 August 10, 2022 ADU Community Meeting
At this meeting, staff provided an overview of ADUs as a housing type and the existing regulations that govern ADUs in the city.

The focus of the meeting was to solicit public input on the needs and wants of the community in order to develop appropriate regulations to encourage and facilitate the development of ADUs.

3. Outreach to All City Commissions
City staff working on the Housing Element update attended meetings and presented on the Housing Element update and process of all of the City’s 11 Commissions in October and November of 2020. City commission meetings are recorded and televised and generally reach a wide audience. This presentation provided an opportunity for all City commissioners to learn about the Housing Element, and learn how to get involved. Commissioners were encouraged to spread the word regarding the Housing Element update process. At these meetings the Housing Element FAQ document was shared with commissioners and included in their commission packets, and staff fielded a number of questions from commissioners about the Housing Element and the review process.

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C. Outreach to Community Based Organizations

1. Fair Housing Outreach
In addition to the broad public outreach conducted as part of the initial Housing Element update process, in response to comments received from HCD on the adopted Housing Element, the City conducted a series of focused interviews with community stakeholders involved in the fair housing arena. In designing this more intensive level of outreach, the City of Beverly Hills took a representative approach to reach a deeper level of policy analysis, by reaching out to representatives of organizations that deal with tenant advocacy and fair housing issues within the community. In doing so, the City identified the protected classes and groups underrepresented in housing in the community, and located the community-based and other organizations (CBOs) who serve them, as well as housing and community development providers, and fair housing agencies. The City also learned more about the main fair housing issues affecting residents in the City, which has informed policies and programs included under the Affirmatively Furthering Fair Housing section.

Throughout the update process, the Housing Element team regularly consulted internally with other City staff who can be considered local experts in housing and social services through their official City roles:
1) Helen Morales – (Former) Deputy Director of Rent Stabilization, Community Development Department
2) Nestor Otazu – Deputy Director of Rent Stabilization, Community Development Department
3) Rachel Evans – (Former) Human Services Administrator, Community Services Department
4) Christopher Paulson – Human Services Administrator,
Community Services Department
Both the former and current Directors of Rent Stabilization and the Human Services Administrators provided information about the existing services provided by the City, assisted in the fair housing analysis, and provided connections to external
contacts/organizations to gather deeper local knowledge and data.

Their expertise was relied upon in the creation of the fair housing policies.

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Three external stakeholders agreed to be interviewed regarding overall housing and fair housing issues in Beverly Hills. Interviews were conducted with the following representatives:
1) Cynthia Chagolla - Bet Tzedek
2) Shohreh Zerehi - Jewish Family Services
3) Mark Elliot - Beverly Hills Renters’ Alliance
Interview Questions
For the purpose of fair and impartial data collection, all of the external interviewees were asked the same set of interview questions, which were provided to them in advance of the meeting. The interviewees were offered a variety of meeting times to be selected at their convenience, as well as the option for a virtual meeting for easier access. The list of interview questions, as well as a summary of each of the interviews, can be found below.

1. Please describe your organization’s mission and what populations you serve or represent. How does your mission relate to housing? What is your organization’s role in the city of Beverly Hills?

2. In your opinion, what are the greatest housing needs and challenges facing the Beverly Hills community and the
populations that you serve or represent?

3. What segment(s) of the City’s population do you see as most vulnerable in terms of accessing or retaining affordable housing?

4. How do you think the City can best assist those population segments?

5. Within the city of Beverly Hills, are you aware of any fair housing issues facing the populations you serve? For example, are you aware of any protected classes or minority groups, or
areas/neighborhoods that currently face barriers to accessing opportunities such as jobs, housing, City services, education, or transit as a result of housing policies or practices?
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6. In order to provide more housing and housing types for community members, what tools are you aware of that could help encourage diverse housing for all community members within the city?

7. Can you identify opportunities for forging or deepening a partnership between your organization and the City of Beverly Hills to better meet the community’s housing needs? Would your organization be interested in doing so?

8. Are there other organizations you are familiar with that we should speak to regarding fair and/or affordable housing to serve Beverly Hills?
Synopsis of Interviews
Interview #1
Ms. Shohreh Zerehi is a social worker with Jewish Family Services (JFS), which is a non-profit organization in the Los Angeles region that is contracted with the City of Beverly Hills to provide social services to residents within the city. Ms. Zerehi is assigned specifically to work Beverly Hills residents, in particular seniors. As a Farsi speaker, most of Ms. Zerehi’s clients are Persian and she is able to serve this segment of the Beverly Hills population. JFS assists its clients by connecting them to housing and services, but does not act as a direct housing provider.

The greatest housing challenge Ms. Zerehi identified was the very high level of rents and the lack of affordability. She identified seniors as being the most vulnerable population, as many of them are living on low or fixed incomes. In her experiences, Ms. Zerehi has received anecdotal complaints from her clients that all low-income housing have very long waitlists, and there was a perceived questioning of the order in which the waitlist was served. However, Ms. Zerehi was not formally aware of any discrimination in housing, but rather that some confusion may be due to a lack of information. She identified that the challenges were primarily due to a supply issue, as not enough lowincome units are available to meet the demand. She noted that the City of Beverly Hills has a generous budget for care, and its attention to seniors is ample. Regarding the affordable housing development she frequently visits her clients at on North Crescent Drive in Beverly Deleted:

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Hills, Ms. Zerehi noted that the units were generally in good condition, clean, and well-maintained. As for the cultural aspects of the Persian and Farsi-speaking populations she works with, Ms. Zerehi observed that within the Persian community, seniors wish to live near their family members, if not with them in the same household. As there may sometimes be a language barrier for these clients to access housing opportunities, she sometimes provides translation services. Lastly, Ms.

Zerehi observed that loneliness and isolation was a health consequence experienced in older adults during the ongoing COVID pandemic. Some of the suggestions generated in this interview have been incorporated into the policies in Implementation Measure 11.1 (Affirmatively Furthering Fair Housing).

Interview #2
Ms. Cynthia Chagolla is an attorney with Bet Tzedek, which is a legal aid organization that provides free legal services to low- and moderate-income people in Los Angeles County. Bet Tzedek is contracted with the City of Beverly Hills for a program that provides free legal services to seniors, and tenants or landlords with housingrelated issues, within Beverly Hills. Ms. Chagolla identified affordability as the most prominent housing issue facing the community, and housing security/retention as the second largest challenge. Ms.

Chagolla identified seniors as the most vulnerable population, particularly those who are on a fixed income and/or are long-term renters. Most of the clients she sees are long-term renters, and she noted the positives of the rent stabilization protections in Beverly Hills.

However, she noted that still many tenants lose their housing through a formal eviction process and if they are not able to preserve that stabilized housing, that limited opportunity exists to relocate within the community and tenants would be forced to move outside of the city.

As the same issues of housing affordability permeate the entire Los Angeles region, most are forced to relocate to a further locale, and in so doing can lose their connection to social services and social networks near their prior residences. When asked about known fair housing issues, Ms. Chagolla conveyed that in her training and experience as an attorney, she found that most housing discrimination issues occur during the rental application process and that prospective tenants even from protected groups (particularly those with visible markers such persons of color or persons with physical disabilities) are rejected before or during the application process by Deleted:

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landlords or rental agents. Chagolla noted that this type of discrimination is the hardest to prove and serves as a barrier for new tenants to relocate into the city. Additionally, Ms. Chagolla shared known instances of tenants with disabilities facing resistance or discrimination from their landlords in terms of making needed reasonable accommodation upgrades.

Ms. Chagolla was not specifically aware of historical practices that contributed to current housing patterns, but offered the suggestion that that City could possibly offer a direct rent subsidy to specific rental groups such as seniors or underrepresented racial groups. She also suggested that the city could benefit from stronger long-term tenant protections and expanded outreach opportunities between Bet Tzedek and the City of Beverly Hills. Some of the suggestions generated in this interview have been incorporated into the policies in Implementation Measure 11.1 (Affirmatively Furthering Fair Housing).

Interview #3
Mr. Mark Elliot identified himself as a long-time tenant in Beverly Hills and a tenants’ rights advocate through the group Beverly Hills Renters’ Alliance. He identified his role as a facilitator between tenants (representing their interests) and the City (following and communicating regarding policies, programs and practices). Mr.

Elliot cited affordability as the greatest long-term housing challenge facing the community. He attributes the lack of affordability to the statewide housing crisis, and the dearth of new rental housing and/or deed-restricted affordable housing in Beverly Hills. Additional housing issues highlighted by Mr. Elliot include “precariously-housed households” living in sub-standard conditions due to aging housing stock and poor maintenance by owners. He pinpointed households with a high rent burden and seniors and others on fixed incomes as the groups most vulnerable to housing instability. He asserted that once displaced, these households cannot afford replacement housing in Beverly Hills. Mr. Elliot suggested that the City could respond to these issues by “get[ting] in the affordable housing business – and not only for seniors.” Mr. Elliot highlighted “soft discrimination” as a fair housing issue that exists in the city, whereby landlords screen for “problem tenants” or for “character,” despite the existence of antiDeleted:

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discrimination laws that prohibit such conduct. Overall, Mr. Elliot urged efforts to support affordable housing in the city, and for greater attention to the constituency of renter households in the community.

Some of the suggestions generated in this interview have been incorporated into the policies in Implementation Measure 11.1 (Affirmatively Furthering Fair Housing).

D. Information Publication and Contact

1. Housing Element Update Webpage
Staff created a dedicated webpage on the Housing Element Update, hosted on the City’s main web domain
(www.beverlyhills.org/housingelementupdate). This webpage contains detailed information regarding the Housing Element Update process in a Frequently Asked Questions (FAQ) document, and the page is frequently updated with any relevant information, such as new surveys or meeting notices. Links to the recorded Planning Commission Study Session meetings on the Housing Element and the community meetings are also archived on this page.

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2. Housing Element Staff Contact
Staff created a dedicated email address
([email protected]) to field inquiries and to communicate directly with the public about the Housing Element Update. Members of the public were able to request that they were added to the “interested parties list” for this project, and staff has collected 78 email addresses. In addition, staff included the following groups or individuals in email lists:
 The Beverly Hills Unified School District
 The Beverly Hills Rotary
 Local religious institutions
 Residents that expressed interest in the mixed use
overlay zone or other housing related policy issues
 Known property owners in the mixed use overlay zone
area
 Contacts at local newspapers
Any important updates or upcoming events related to the Housing Element Update (such as any scheduled study sessions or community meetings) are sent out to this interested parties email list.

E. Summary of Comments Received
The Draft Housing Element document was made available to the public in May 2021 for review. The draft was posted on the City webpage for the 2021- 2029 Housing Element update
(www.beverlyhills.org/housingelementupdate), included in the Planning Commission packet for the May 27, 2021 meeting, and discussed at the May 27, 2021 Planning Commission meeting. Public noticing was completed in order to inform the public and interested parties that the draft document was available. In addition, any subsequent adopted or draft revised version of the Housing Element has been made available on the City’s webpage prior to its submittal to HCD, and all previous versions are also available on this webpage.

Throughout the Housing Element update process a number of comments from interested parties have been received. These comments informed meetings held on the Housing Element update as well as the contents of the Housing Element document. A majority of the comments came from the two surveys conducted online. Verbal and written comments were received from Deleted: ¶
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community members during and as a result of public meetings and community meetings, and written comments were received from “Abundant Housing LA/YIMBY Law” and “How the West Was Saved”. In summary the themes of the comments received include:
 Desire to see more action from the City related to encouraging ADUs and informing and educating the public on the process for building ADUs
 Concerns that there is a shortage of affordable housing in the community and that many members of the community are
overpaying for housing
 Concerns that development could lead to impacts to
neighborhood character
 Concern that the draft Housing Element document did not accurately assess the capacity for housing in the sites inventory and that adequate reforms are not proposed to address
constraints to development or adequately promote
development near planned transit stations or in the mixed use zone
 Concern that the Housing Element does not affirmatively further fair housing
 Desire to see old office buildings repurposed for housing  Desire to see housing for seniors
 Desire to see no change in current zoning regulations As the Housing Element has been further revised since it was originally adopted in 2021, the City has received additional comments from interested parties. The comments mentioned the following topics:
 Desire to see changes to the City’s ADU ordinance
 Concern that the Housing Element has not looked at possible rezoning of additional sites, including lots in the T-1 Transportation zone
 Concern that language in the programs is not specific enough regarding commitments
 Desire to include further development incentives for the Mixed Use Overlay Zone, such as increased height and density
 Desire for more affordable housing in the City
 Concern regarding the likelihood of development in the Mixed Use Overlay Zone
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ADU production, including the adoption of an ordinance to create ADU standards that exceed state law minimums, and enhance outreach to property owners about the potential to build ADUs on their property. The City has included programs and implementation strategies to continue the existing inclusionary housing program and also explore a local density bonus program to provide incentives, which would impact multi-family and mixed-use zoned properties, many of which are near high quality transit and future subway station areas. The City has also committed to further changes to development standards, specifically to multi-family residential standards, and the Architectural Review process applicable to both multi-family and mixed-use residential projects. The Element also contains programs that commit the City to monitoring the production of housing during the planning period, and commitments to take actions to modify the Mixed Use Overlay Zone if production is not on pace with the assumptions. The City has attempted to balance the need for housing with the desire to retain the distinct characteristics of existing residential neighborhoods through many of the policies included in the General Plan, and through the establishment of the Mixed Use Overlay Zone, which would allow for the development of new housing without impacting the character of existing multi-family or single-family zones or displacing existing residents. Additional programs and a more robust analysis in the Assessment of Fair Housing section has been included in the Housing Element to address the concerns that the Element does not adequately address fair housing.

Furthermore, the sites inventory has been revised to demonstrate adequate capacity in several different sites categories: underutilized sites, residential conversion, developer interest, approved projects, submitted projects, City-owned projects, and ADUs. As part of these revisions, criteria to select sites for inclusion in the underutilized sites and residential conversion sites categories have been developed and applied to the sites inventory. Most recently, the sites inventory has been updated to include additional City-owned or Citycontrolled sites upon which affordable housing can be developed in partnership with the City. Additionally, a more robust discussion regarding realistic capacity and the likelihood of development of sites in the Mixed Use Overlay Zone has been included. Through this series of revisions, the concerns expressed in the comments received have been addressed.

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Attachment 7
Housing Element Update Timeline of
Milestones

TABLE OF HOUSING ELEMENT UPDATE TIMELINE AND

MILESTONES

DATE ACTION / MILESTONE
8/13/2020 Planning Commission Study Session: Housing Element/RHNA Intro 10/13/2020 Arts and Culture Commission Meeting – Housing Element Info Item 10/14/2020 Cultural Heritage Commission Meeting – Housing Element Info Item 10/15/2020 Human Relations Commission Meeting – Housing Element Info Item 10/21/2020 Architectural Commission Meeting – Housing Element Info Item 10/22/2020 Planning Commission Study Session: Existing Conditions and Context
10/26/2020 Health and Safety Commission Meeting – Housing Element Info Item 10/26/2020 Recreation and Parks Commission Meeting – Housing Element Info Item 11/4/2020 Rent Stabilization Commission Meeting – Housing Element Info Item 11/5/2020 Traffic and Parking Commission Meeting – Housing Element Info Item 11/10/2020 Charitable Solicitations Commission Meeting – Housing Element Info Item 11/12/2020 Public Works Commission Meeting – Housing Element Info Item 11/12/2020 Planning Commission Study Session: RHNA, Constraints on Housing Production, and Housing Policy Strategy
12/3/2020 Design Review Commission – Housing Element Info Item 2/1/2021 Community Meeting
3/11/2021 Planning Commission Study Session: Update on RHNA, Outreach, Timeline, and Potential ADU Ordinance Changes
4/28/2021 Community Meeting
5/27/2021 Planning Commission Study Session: Review of draft Housing Element
6/1/2021 City Council Study Session: draft Housing Element on agenda as C Item (informational only)
6/3/2021 Submitted draft Housing Element to HCD for review 7/30/2021 Received comment letter from HCD on draft version 9/23/2021 Planning Commission Public Hearing to review Housing Element; adopted resolution recommending approval to the City Council 10/12/2021 City Council Public Hearing to review Housing Element, and adopted a resolution to adopt the updated 2021-2029 Housing Element 10/18/2021 Submitted adopted Housing Element to HCD for review 1/14/2022 Received comment letter from HCD on adopted version (10/12/21 version)
8/25/2022 Planning Commission Public Hearing to review revisions to the Housing Element, in response to HCD comments
9/20/2022 City Council Study Session: revised Housing Element on agenda as C Item (informational only)
9/28/2022 Submitted revised Housing Element to HCD for review 11/28/2022 Received comment letter from HCD on revised version 2/21/2023 City Council Public Hearing to review revised Housing Element; adopted a resolution to adopt the amended 2021-2029 Housing Element
3/13/2023 Submitted adopted Housing Element to HCD for review 5/12/2023 Received comment letter from HCD on adopted version 10/18/2023 Submitted revised Housing Element to HCD for review 12/15/2023 Received comment letter from HCD on revised version (10/18/23 version)
2/14/2024 Submitted revised Housing Element to HCD for review Attachment 8
Public Correspondence – 2-21-2023
City Council Meeting
option, if they don’t take it- escort them to the Colorado river and give them a nice parting gift.

Squalor is not a virtue. Allowing squalor is not virtuous. Tax paying residents owe street campers nothing. It will get worse. A lot of people pay a lot to live here - not all want to move to Texas and Florida just because local SoCal governments are run by lazy skimmers, squalor fetishists, and cowards and whiners whose lives peaked at Burning Man in 1998.

As for those who insist a court order means these sidewalk campers can’t be moved - do what all smart people do- get better lawyers, find better judges. No one is being helped by ignoring the real problem and many are being harmed.

Thank you,
From:

To: City Clerk
Subject: Agenda Item F1 - Tuesday 2/21/23
Date: Tuesday, February 21, 2023 5:32:40 PM
Attachments: Memo re Corrections to HE with Reso - 2-21-2023.pdf CAUTION: External Sender
Use caution when clicking links or opening attachments
Please read this anonymously this evening.

Thank you.

Beverly Hills Affordable Housing
The number of years a current Beverly Hills resident or a resident prior to displacement has lived in Beverly Hills is not considered when on the affordable housing list but deserves to be. Residents who have spent decades in the community, shopping, dining, supporting small businesses, and paying taxes, have contributed more than someone who moved into Beverly Hills a year ago.

Why is there not a higher tier for Chapter 5 and Chapter 6 tenants? Please consider a higher tier that includes the number of years a Beverly Hills resident or former displaced Beverly Hills resident has been on the affordable housing waiting list.

Please review and look at these important variables for Beverly Hills residents and prior Beverly Hills residents with the affordable housing program. There are a variety of reasons beyond a tenant's or resident's control for displacement other than a demolished building. Long-term Beverly Hills Residents and former displaced residents have given much to the community and deserve the city’s support when they are in need.

Thank you.

Sincerely,
2/21/2023
Beverly Hills City Council
455 N. Rexford Dr.

Beverly Hills, CA 90210
Public Comments on Beverly Hills Housing Element
Dear Councilmembers,
We write on behalf of Abundant Housing LA to raise concerns about Beverly Hills’ subsequent draft housing element, which will be discussed at tonight’s Council meeting (agenda Item F.1).

Our comments are based on a letter dated 11/232022 from Matthew Gelfand, of Californians For Homeownership (CFE), to the City of Beverly Hills. Our understanding is that CFE is currently engaged in litigation with Beverly Hills over alleged inadequacies in its housing element.

Abundant Housing LA is a pro-housing, nonprofit advocacy organization working to help solve Southern California’s housing crisis. We support reforms to legalize more homes, make homes easier to build, increase funding for affordable housing, and protect tenants, which are all needed to make housing more affordable, improve access to jobs and transit, promote greater environmental sustainability, and advance racial and economic equity. As a community organization, in order to maintain our independence, we do not accept financial support from housing developers or their consultants.

We were concerned to read the allegations raised in the CFE letter, including:
● A duplicate and double-counted site in the City’s sites inventory which may bring the City’s site capacity below its RHNA requirement for low-income units ● Non-specific descriptions of sites such as “retail” and “office” that do not provide realistic information regarding the likelihood of residential redevelopment ● Inaccurate estimations of and assumptions about the likelihood of redevelopment of non-vacant sites including Class A and B office buildings and sites in the MU Overlay Zone
● Lack of clarity for distribution of units between income levels ● An inadequate no net loss buffer for the lower-income RHNA These criticisms are similar in some respects to those we raised in our most recent comment letter on a prior draft of Beverly Hills’ housing element.

Zillow’s typical home value for Beverly Hills is about $3.4 million. It is critical that an exclusive, high-opportunity jurisdiction like Beverly Hills put forward a meaningful housing element so that it can do its part to solve the housing affordability crisis, by satisfying the RHNA at all income levels and affirmatively furthering fair housing.

We urge you to engage with CFE’s feedback in good faith and put forward a housing element that complies with the letter and spirit of state law.

Sincerely,
Leonora Camner David J. Barboza
Leonora Camner
Executive Director
Abundant Housing LA
David J. Barboza, AICP
Director of Policy and Research
Abundant Housing LA
Letter Recipients
City Council Public Comments, Beverly Hills, [email protected] Mayor Lili Bosse, Beverly Hills, [email protected].

Vice Mayor Julian A. Gold M.D., Beverly Hills, [email protected].

Councilmember John Mirisch, Beverly Hills, [email protected].

Councilmember Lester Friedman, Beverly Hills, [email protected] Councilmember Sharona R. Nazarian PsyD, Beverly Hills, [email protected] City Manager Nancy Hunt-Coffey, Beverly Hills, [email protected] Director of Community Development, Timothea Tway, Beverly Hills, [email protected] Gustavo Velasquez, Director, HCD, [email protected] Megan Kirkeby, Deputy Director, HCD, [email protected] Melinda Coy, Land Use and Planning Manager, HCD, [email protected] Tyrone Buckley, Assistant Deputy Director of Fair Housing, HCD, [email protected] Paul McDougall, Housing Policy Development Manager, HCD, [email protected] HCD Housing Element Inbox, [email protected]
Matthew Geland, Californians for Homeownershiop, [email protected]

MATTHEW GELFAND, COUNSEL
[email protected]
TEL: (213) 739-8206
February 21, 2023

VIA EMAIL
City Council
City of Beverly Hills
455 North Rexford Dr
Beverly Hills, CA 90210
Email: [email protected]; [email protected] RE: February 21, 2023 City Council Meeting, Agenda Item F.1.

To the City Council:

Californians for Homeownership is a 501(c)(3) non-profit organization devoted to using legal tools to address California’s housing crisis. Our organization is monitoring local compliance with the laws governing housing elements, and we have sued the City over its adoption of an inadequate sixth cycle housing element update.

There is little value in adopting the amended housing element update before you tonight, because it has already been determined by the state Department of Housing and Community Development (HCD) to contains serious deficiencies. We have confirmed with HCD that letters like the letter the City received on November 28, 2022 indicate that HCD does not view the subject housing element as being substantially compliant with state law. HCD’s letters identifying the deficiencies in the City’s housing element are attached and we incorporate them here in their entirety, by reference. The City’s latest draft is deficient for the reasons identified in these letters.

The staff report presented to you tonight openly admits that the City has not addressed HCD’s concerns on a number of items. In the matrix of staff’s responses to HCD’s November 28, 2022 letter, the City identifies several areas where staff are continuing to work to address HCD’s comments, despite puzzlingly bringing you the current draft for adoption before that work is done:

February 21, 2023

Staff are wrong to suggest that the City’s latest draft complies with state law. The City’s sites inventory, housing programs, and AFFH analysis are all inadequate. HCD has explained why, in excruciating detail, in its letters to the City. And we have explained why in our comments to HCD on the City’s 2022 draft, which are also attached.

Although the City touts its significant purported RHNA buffer for all sites, it conveniently leaves out the incredibly narrow buffer for very low- and low-income sites. In the very low-income category, the City’s buffer is just three units! With the recent corrections to its sites inventory, the City cannot afford to have even a single site in its lower-income categories deemed inappropriate for inclusion in the housing element:

This amended housing element update, in its current state, is indefensible. We urge you to send staff back to the drawing board.

Sincerely,
Matthew Gelfand
cc: City of Beverly Hills
Timothea Tway, AICP, Director of Comm. Dev. (by email to [email protected]) Chloe Chen, Senior Planner (by email to [email protected]) Laurence S. Wiener, Esq., City Attorney (by email to )
California Department of Housing and Community Development Chelsea Lee (by email to [email protected])
PRIOR

CORRESPONDENCE
STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor

DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT

DIVISION OF HOUSING POLICY DEVELOPMENT
2020 W. El Camino Avenue, Suite 500
Sacramento, CA 95833
(916) 263-2911 / FAX (916) 263-7453
www.hcd.ca.gov
July 30, 2021
Ryan Gohlich, Director
Community Development Department
City of Beverly Hills
455 North Rexford Drive, First Floor
Beverly Hills, CA 90210
Dear Ryan Gohlich:

RE: Review of City of Beverly Hills’s 6th Cycle (2021-2029) Draft Housing Element Thank you for submitting the City of Beverly Hills’s (City) draft housing element received for review on June 2, 2021. Pursuant to Government Code section 65585, subdivision (b), the California Department of Housing and Community Development (HCD) is reporting the results of its review. In addition, HCD considered comments from Abundant Housing LA and Josh Albrektson pursuant to Government Code section 65585, subdivision (c).

The draft element addresses many statutory requirements; however, revisions will be necessary to comply with State Housing Element Law (Article 10.6 of the Gov. Code).

The enclosed Appendix describes the revisions needed to comply with State Housing Element Law.

To remain on an eight-year planning cycle, the City must adopt its housing element within 120 calendar days from the statutory due date of October 15, 2021 for Southern California Association of Governments (SCAG) localities. If adopted after this date, Government Code section 65588, subdivision (e)(4), requires the housing element be revised every four years until adopting at least two consecutive revisions by the statutory deadline. For more information on housing element adoption requirements, please visit HCD’s website at: http://www.hcd.ca.gov/community-development/housingelement/housing-element-memos/docs/sb375_final100413.pdf.

Public participation in the development, adoption and implementation of the housing element is essential to effective housing planning. Throughout the housing element process, the City should continue to engage the community, including organizations that represent lower-income and special needs households, by making information regularly available and considering and incorporating comments where appropriate.

Ryan Gohlich, Director

Several federal, state, and regional funding programs consider housing element compliance as an eligibility or ranking criteria. For example, the CalTrans Senate Bill (SB) 1 Sustainable Communities grant; the Strategic Growth Council and HCD’s Affordable Housing and Sustainable Communities programs; and HCD’s Permanent Local Housing Allocation consider housing element compliance and/or annual reporting requirements pursuant to Government Code section 65400. With a compliant housing element, the City will meet housing element requirements for these and other funding sources.

HCD is committed to assisting the City of Beverly Hills in addressing all statutory requirements of State Housing Element Law. If you have any questions or need additional technical assistance, please contact Chelsea Lee at [email protected].

Sincerely,
Shannan West
Land Use & Planning Unit Chief
Enclosure
HCD Review of Beverly Hills’s 6th Cycle Housing Element Page 1 July 30, 2021

APPENDIX

CITY OF BEVERLY HILLS
The following changes are necessary to bring the City’s housing element into compliance with Article 10.6 of the Government Code. Accompanying each recommended change, we cite the supporting section of the Government Code.

Housing element technical assistance information is available on HCD’s website at http://www.hcd.ca.gov/community-development/housing-element/housing-elementmemos.shtml. Among other resources, the housing element section contains HCD’s latest technical assistance tool, Building Blocks for Effective Housing Elements (Building Blocks), available at http://www.hcd.ca.gov/community-development/building-blocks/index.shtml and includes the Government Code addressing State Housing Element Law and other resources.

A. Review and Revision
Review the previous element to evaluate the appropriateness, effectiveness, and progress in implementation, and reflect the results of this review in the revised element. (Gov. Code, § 65588 (a) and (b).)
As part of the evaluation of programs in the past cycle (Appendix D), the element must provide an explanation of the effectiveness of goals, policies, and related actions in meeting the housing needs of special needs populations (e.g., elderly, persons with disabilities, large households, female headed households, farmworkers and persons experiencing homelessness).

B. Housing Needs, Resources, and Constraints

1. Affirmatively further[ing] fair housing in accordance with Chapter 15 (commencing with Section 8899.50) of Division 1 of Title 2…shall include an assessment of fair housing in the jurisdiction. (Gov. Code, § 65583, subd. (c)(10)(A).) The element generally does not address this requirement. The element, among other things, must include outreach, an assessment of fair housing, identification, and prioritization of contributing factors to fair housing issues and goals and actions sufficient to overcome patterns of segregation and foster inclusive communities free from barriers that restrict access to opportunity. For more information, please contact HCD and visit https://www.hcd.ca.gov/community-development/affh/index.shtml.

2. Include an analysis of population and employment trends and documentation of projections and a quantification of the locality's existing and projected needs for all income levels, including extremely low-income households. (Gov. Code, § 65583, subd. (a)(1).)
The element includes analysis regarding extremely low-income (ELI) households such as the number of households and overpayment but must also identify projected HCD Review of Beverly Hills’s 6th Cycle Housing Element Page 2 July 30, 2021
housing needs. The projected housing need for ELI households can be calculated by using available census data to determine the number of very low-income households that qualify as ELI households or presume that 50 percent of the regional housing need allocation (RHNA) for very low-income households qualify as ELI households. For additional information, see the Building Blocks at http://www.hcd.ca.gov/communitydevelopment/building-blocks/housing-needs/extremely-low-income-housingneeds.shtml.

3. An inventory of land suitable and available for residential development, including vacant sites and sites having realistic and demonstrated potential for redevelopment during the planning period to meet the locality’s housing need for a designated income level, and an analysis of the relationship of zoning and public facilities and services to these sites. (Gov. Code, § 65583, subd. (a)(3).) Parcel Listing: The element lists parcels by acreage, general plan and zoning but must also identify the anticipated affordability levels of all the units on identified sites.

In addition, the parcel listing includes a column for existing uses. However, in many cases, the column is blank and should be completed. Finally, the parcel listing in some cases does describe existing uses, but the description is generic, such as office building or store building. Instead, the description of existing uses should be sufficiently detailed to facilitate an analysis demonstrating the potential for additional development in the planning period.

Suitability of Nonvacant Sites: While the element describes the mixed-use overlay, it generally does not address this requirement. The element must include an analysis to demonstrate the potential for additional development. The methodology shall consider factors including the extent to which existing uses may constitute an impediment to additional residential development, the City’s past experience with converting existing uses to higher density residential development, the current market demand for the existing use, an analysis of any existing leases or other contracts that would perpetuate the existing use or prevent redevelopment of the site for additional residential development, development trends, market conditions, and regulatory or other incentives or standards to encourage additional residential development on these sites.

In addition, relying on nonvacant sites to accommodate 50 percent or more of the housing needs for lower-income households triggers requirements to make findings based on substantial evidence that the existing use is not an impediment and will likely discontinue in the planning period.

Realistic Capacity: While the element includes an estimate of the number of units that can be accommodated on each site in the inventory, the estimate should rely on minimum density standards or include analysis demonstrating how the number of units for each site was determined. The estimate of the number of units for each site must account for land-use controls and site improvements, typical densities of existing or approved residential developments at a similar affordability level in the City and on the HCD Review of Beverly Hills’s 6th Cycle Housing Element Page 3 July 30, 2021
current or planned availability and accessibility of sufficient water, sewer, and dry utilities.

In addition, the element appears to assume residential development on sites zoned for nonresidential uses, but to support this assumption, the element must analyze the likelihood of residential in zoning where 100 percent nonresidential uses are allowed.

The analysis should be based on factors such as development trends including nonresidential, performance standards requiring residential uses or other relevant factors such as enhanced policies and programs.

Small Sites: Many identified sites are smaller than half an acre. Sites smaller than a half-acre in size are deemed inadequate to accommodate housing for lower-income households unless it is demonstrated that sites of equivalent size were successfully developed during the prior planning period for an equivalent number of lower-income housing units as projected for the site or unless the housing element describes other evidence to HCD that the site is adequate to accommodate lower-income housing. As a result, if utilizing these sites toward the housing need for lower-income households, the element must include analysis and programs as appropriate. For additional information, see the Building Blocks at https://www.hcd.ca.gov/communitydevelopment/building-blocks/site-inventory-analysis/analysis-of-sites-andzoning.shtml.

Availability of Infrastructure: The element includes information on water capacity but must also address total sewer capacity sufficient to accommodate the RHNA. For additional information, see the Building Blocks at http://www.hcd.ca.gov/communitydevelopment/building-blocks/site-inventory-analysis/analysis-of-sites-andzoning.shtml#environmental.

Environmental Constraints: While the element generally describes a few environmental conditions within the City (page B-49), it must also describe any known environmental constraints or other conditions on identified sites that could impact housing development in the planning period. For additional information and sample analysis, see the Building Blocks at http://www.hcd.ca.gov/communitydevelopment/building-blocks/site-inventory-analysis/analysis-of-sites-andzoning.shtml#environmental.

Affirmatively Furthering Fair Housing: The element must demonstrate the sites inventory affirmatively furthers fair housing. For more information, see HCD’s guidance at https://www.hcd.ca.gov/community-development/housingelement/housing-element-memos.shtml.

Replacement Requirements: If utilizing sites with residential uses, the element must include a policy requiring the replacement of all those units affordable to the same or lower-income level as a condition of any development on the site pursuant to Government Code section 65583.2, subdivision (g), paragraph (3). Replacement requirements shall be consistent with those set forth in Government Code section 65915, subdivision (c), paragraph (3).

HCD Review of Beverly Hills’s 6th Cycle Housing Element Page 4 July 30, 2021
Accessory Dwelling Units (ADUs): The element projects 150 ADUs over the planning period or approximately 18 ADUs per year over the eight-year planning period. The element also notes permitting 7 ADUs in 2018, 6 in 2019 and 9 in 2020. These trends are inconsistent with HCD records (nothing reported in 2018, 6 in 2019 and 4 in 2020) and do not support an assumption of 18 ADUs per year.

To support assumptions for ADUs in the planning period, the element should reduce the number of ADUs assumed per year and reconcile trends with HCD records, including additional information such as more recent permitted units and inquiries, resources and incentives, other relevant factors and modify policies and programs as appropriate. Further, programs should commit to additional incentives and strategies, frequent monitoring (every other year) and specific commitment to adopt alternative measures such as rezoning or amending the element within a specific time (e.g., 6 months) if ADU assumptions for the number of units and affordability are not met.

Electronic Sites Inventory: For your information, pursuant to Government Code section 65583.3, the City must submit an electronic sites inventory with its adopted housing element. The City must utilize standards, forms, and definitions adopted by HCD.

Please see HCD’s housing element webpage at https://www.hcd.ca.gov/communitydevelopment/housing-element/index.shtml#element for a copy of the form and instructions. The City can reach out to HCD at [email protected] for technical assistance.

Zoning for a Variety of Housing Types: The element must demonstrate zoning to encourage and facilitate a variety of housing types, as follows:
• Emergency Shelters: Zoning may impose development standards on emergency shelters including sufficient parking to accommodate all staff working in the emergency shelter, provided that the standards do not require more parking for emergency shelters than other residential or commercial uses within the same zone. The element describes parking requirements are based on need which appears inconsistent with statute.

As a result, the element should add or modify programs as appropriate. • Permanent Supportive Housing: Supportive housing shall be a use by-right in zones where multifamily and mixed uses are permitted, including nonresidential zones permitting multifamily uses pursuant to Government Code section 65651. The element must demonstrate compliance with this requirement and include programs as appropriate.
• Transitional and Supportive Housing: Definitions for transitional and supportive housing and target population (page B-37) appear inconsistent in Government Code section 65582, and the element should be revised, including with programs, as appropriate.
• Employee Housing: The element must demonstrate zoning is consistent with the Employee Housing Act (Health and Safety Code, § 17000 et seq.) or add or modify programs. Specifically, section 17021.5 requires employee HCD Review of Beverly Hills’s 6th Cycle Housing Element Page 5 July 30, 2021
housing for six or fewer employees to be treated as a single-family structure and permitted in the same manner as other dwellings of the same type in the same zone.

4. An analysis of potential and actual governmental constraints upon the maintenance, improvement, or development of housing for all income levels, including the types of housing identified in paragraph (1) of subdivision (c), and for persons with disabilities as identified in the analysis pursuant to paragraph (7), including land-use controls, building codes and their enforcement, site improvements, fees and other exactions required of developers, and local processing and permit procedures. (Gov. Code, § 65583, subd. (a)(5).)
Land-Use Controls: The element lists several potential constraints, particularly unit sizes, setbacks, parking, modulation requirements and heights and then appears to conclude these standards are not constraints because projects have been built near maximum densities. This analysis does not demonstrate these land use controls are not constraints. For example, none of the listed projects are less than a decade old and most did not achieve maximum densities under the general plan.

The analysis should at least address a newer and more complete list of projects, whether exceptions or deviations to developments standards were utilized, the lack of regularly achieving general plan densities, why assemblage appears necessary to achieve higher densities, which zones were used and any other factors that impact the cost, supply and feasibility of development. Based on the outcomes of the analysis, the element must include programs to address identified constraints.

Fees: The element indicates that fees are approximately $100,000 per multifamily unit and concludes the fees are nominal based on sales prices. However, regardless of proportion of sales prices, cumulative fees of $100,000 per unit have a significant impact on development costs. The element should include a closer evaluation of these fees and add programs to address the constraint as appropriate.

Processing and Permit Procedures: The element describes planning and architectural commission reviews as well as decision making standards such as “…promote harmonious development…”, “…conformity with good taste….”, and “…contributes to the image of Beverly Hills as a place of beauty, spaciousness, balance, taste, fitness, broad vistas and high quality.” The City’s processing approach to these potentially roving standards is to provide technical assistance and examples of past projects.

While this approach could be effective in facilitating approval certainty, the analysis should also consider impacts on costs, supply and built density. Also, given the significant ambiguity implied in these decision-making standards, the element should include programs to monitor their impacts and should consider more fixed and objective standards.

Constraints on Housing for Persons with Disabilities: The element must include an analysis of zoning, development standards, building codes, and process and permit procedures as potential constraints on housing for persons with disabilities, as follows:

HCD Review of Beverly Hills’s 6th Cycle Housing Element Page 6 July 30, 2021
• Family Definition: The element discusses definitions of family, bona fide housekeeping unit and single-family housekeeping unit that appear to constrain housing, including for persons with disabilities. For example, the definitions require households to be the “functional equivalent of a traditional family” with members that are “non-transient”, “interactive” and several other provisions. The element should add or modify programs to address these constraints. • Group Homes: Group homes for seven or more persons appear to be excluded from most residential zones and the element does not otherwise address this important housing type. The element should identify what zones permit this housing and evaluate approval requirements for impacts on objectivity and approval certainty. For example, excluding this housing from residential zones or imposing standards such as compatibility with surrounding uses without clarity would be considered a constraint. The element must include programs as appropriate to address identified constraints based on the outcomes of this analysis.

SB 35 Streamlined Ministerial Approval Process: The element must identify and analyze written procedures for the SB 35 Streamlined Ministerial Approval Process.

Zoning, Development Standards and Fees: The element must clarify its compliance with new transparency requirements for posting all zoning, development standards and fees for each parcel on the jurisdiction’s website.

5. An analysis of potential and actual nongovernmental constraints upon the maintenance, improvement, or development of housing for all income levels, including the availability of financing, the price of land, the cost of construction, the requests to develop housing at densities below those anticipated in the analysis required by subdivision (c) of Government Code section 65583.2, and the length of time between receiving approval for a housing development and submittal of an application for building permits for that housing development that hinder the construction of a locality’s share of the regional housing need in accordance with Government Code section 65584. (Gov. Code, § 65583, subd. (a)(6).) Identified Densities and Approval Times: The element did not address these requirements. The element must address requests to develop housing at densities below those anticipated in the sites inventory and the length of time between receiving approval for housing development and submittal of application for building permits. The analysis must address any hinderances on housing development and programs should be added as appropriate.

6. Analyze existing assisted housing developments that are eligible to change to nonlow-income housing uses during the next 10 years due to termination of subsidy contracts, mortgage prepayment, or expiration of use restrictions. (Gov. Code, § 65583, subd. (a)(9) through 65583(a)(9)(D).)
HCD Review of Beverly Hills’s 6th Cycle Housing Element Page 7 July 30, 2021
While the element identifies the Beverly Hills Senior Housing project is at risk of converting from affordable to market-rate during the next ten years, the element must also estimate the total cost of preserving these units and include a list of entities with the capacity to acquire multifamily developments that are at risk. The analysis should guide policies and programs necessary to address the critical activity of preserving at-risk units. For additional information and sample analysis, see the Building Blocks at http://www.hcd.ca.gov/community-development/building-blocks/housingneeds/assisted-housing-developments.shtml and for more information on identifying units at-risk, see the California Housing Partnership Corporation at http://www.chpc.net.

C. Housing Programs

1. Include a program which sets forth a schedule of actions during the planning period, each with a timeline for implementation, which may recognize that certain programs are ongoing, such that there will be beneficial impacts of the programs within the planning period, that the local government is undertaking or intends to undertake to implement the policies and achieve the goals and objectives of the housing element through the administration of land use and development controls, the provision of regulatory concessions and incentives, and the utilization of appropriate federal and state financing and subsidy programs when available. The program shall include an identification of the agencies and officials responsible for the implementation of the various actions. (Gov. Code, § 65583, subd. (c).)
To have a beneficial impact in the planning period and address the goals of the housing element, programs must be revised with discrete timelines, including Programs 9.3 (Home Repair and Improvement), 10.3 (Housing Trust Fund), 10.4 (ADUs), 10.6 (Partnerships with Affordable Housing Developers), 11.5 (Housing Opportunities for Persons with Disabilities) and 12.1 (Development Standards).

2. Identify actions that will be taken to make sites available during the planning period with appropriate zoning and development standards and with services and facilities to accommodate that portion of the city’s or county’s share of the regional housing need for each income level that could not be accommodated on sites identified in the inventory completed pursuant to paragraph (3) of subdivision (a) without rezoning, and to comply with the requirements of Government Code section 65584.09. Sites shall be identified as needed to facilitate and encourage the development of a variety of types of housing for all income levels, including multifamily rental housing, factorybuilt housing, mobilehomes, housing for agricultural employees, supportive housing, single-room occupancy units, emergency shelters, and transitional housing. (Gov.

Code, § 65583, subd. (c)(1).)
As noted in Finding B3, the element does not contain a complete sites inventory and analysis. Based on the results of a complete sites inventory and analysis, the City may need to add or revise programs to address a shortfall of sites or zoning available to encourage a variety of housing types.

HCD Review of Beverly Hills’s 6th Cycle Housing Element Page 8 July 30, 2021

3. The housing element shall contain programs which assist in the development of adequate housing to meet the needs of extremely low-, very low-, low- and moderate-income households. (Gov. Code, § 65583, subd. (c)(2).) The element must include a program(s) with specific actions and timelines to assist in the development of housing for extremely low-income households and individuals and households with special needs (beyond seniors). The program(s) could commit the City to adopting priority processing, granting fee waivers or deferrals, modifying development standards, granting concessions and incentives for housing developments that include units affordable to lower and moderate-income households; assisting, supporting or pursuing funding applications; and outreach and coordination with affordable housing developers. For additional information, see the Building Blocks at http://www.hcd.ca.gov/community-development/buildingblocks/program-requirements/assist-in-development-housing.shtml.

4. Address and, where appropriate and legally possible, remove governmental and nongovernmental constraints to the maintenance, improvement, and development of housing, including housing for all income levels and housing for persons with disabilities. The program shall remove constraints to, and provide reasonable accommodations for housing designed for, intended for occupancy by, or with supportive services for, persons with disabilities. (Gov. Code, § 65583, subd. (c)(3).) As noted in Finding B4, the element requires a complete analysis of potential governmental constraints. Depending upon the results of that analysis, the City may need to revise or add programs to address and remove or mitigate any identified constraints. In addition, Program 12.1 must be revised with specific commitment to complete actions early in the planning period. While the program commits to “explore” and “evaluating”, these actions must be coupled with specific actions to amend and complete the appropriate zoning changes. Finally, as noted on page B-15, this program should be revised to evaluate and revise parking requirements.

5. Promote and affirmatively further fair housing opportunities and promote housing throughout the community or communities for all persons regardless of race, religion, sex, marital status, ancestry, national origin, color, familial status, or disability, and other characteristics protected by the California Fair Employment and Housing Act (Part 2.8 (commencing with Section 12900) of Division 3 of Title 2), Section 65008, and any other state and federal fair housing and planning law. (Gov. Code, § 65583, subd. (c)(5).)
As noted in Finding B1, the element must include a complete assessment of fair housing. Based on the outcomes of that analysis, the element must add or modify programs. For additional guidance on program requirements to affirmatively further fair housing, please see HCD’s guidance at https://www.hcd.ca.gov/communitydevelopment/housing-element/housing-element-memos.shtml.

HCD Review of Beverly Hills’s 6th Cycle Housing Element Page 9 July 30, 2021

6. The housing program shall preserve for low-income household the assisted housing developments identified pursuant to paragraph (9) of subdivision (a). The program for preservation of the assisted housing developments shall utilize, to the extent necessary, all available federal, state, and local financing and subsidy programs identified in paragraph (9) of subdivision (a), except where a community has other urgent needs for which alternative funding sources are not available. The program may include strategies that involve local regulation and technical assistance. (Gov.

Code, § 65583, subd. (c)(6).)
As noted in Finding B6, the element must complete an analysis of units at risk of conversion to market rate during the planning period. The element must add or modify programs based on the outcomes of that analysis. In addition, Program 9.7 should be revised to comply with noticing requirements, provide education and assistance to tenants, assist with funding, and promptly reach out to qualified entities to preserve at-risk housing units.

7. Develop a plan that incentivizes and promotes the creation of ADUs that can be offered at affordable rent, as defined in Section 50053 of the Health and Safety Code, for very low, low-, or moderate-income households. (Gov. Code, § 65583, subd. (c)(7).)
The element is required to include a program that incentivizes or promotes ADU development for very low-, low-, and moderate-income households. To address this requirement, the element includes Program 10.4, but many actions only “explore” or “consider” and the program should be revised with specific commitment to complete, adopt, amend or begin implementation of actions that will have an actual and beneficial impact on housing.

D. Public Participation
Include a diligent effort by the local government to achieve public participation of all economic segments of the community in the development of the housing element, and the program shall describe this effort. (Gov. Code, § 65583, subd. (c)(9).) While the element describes a survey, public meetings and a webpage; the element should include additional efforts to include a broad spectrum of individuals and representative organizations; consider language access barriers and describe how comments were incorporated into the housing element. In addition, other public participation requirements may be triggered if the City did not make the element available to the public prior to submittal to HCD. By not providing an opportunity for the public to review and comment on a draft of the element in advance of submission to HCD, the City will have not yet complied with statutory mandates to make a diligent effort to encourage the public participation in the development of the element and it reduces HCD’s ability to consider public comments in the course of its review. The availability of the document to the public and opportunity for public comment prior to submittal to HCD is essential to the public process and HCD’s review. The City must HCD Review of Beverly Hills’s 6th Cycle Housing Element Page 10 July 30, 2021
proactively make future revisions available to the public, including any commenters, prior to submitting any revisions to HCD and diligently consider and address comments, including making revisions to the document where appropriate. HCD’s future review will consider the extent to which the revised element documents were circulated and how the City solicited, considered, and addressed public comments in the element. The City’s consideration of public comments must not be limited by HCD’s findings in this review letter.

STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor

DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT

DIVISION OF HOUSING POLICY DEVELOPMENT
2020 W. El Camino Avenue, Suite 500
Sacramento, CA 95833
(916) 263-2911 / FAX (916) 263-7453
www.hcd.ca.gov
January 14, 2022
Ryan Gohlich, Director
Community Development Department
City of Beverly Hills
455 North Rexford Drive, First Floor
Beverly Hills, CA, 90210
Dear Ryan Gohlich:

RE: City of Beverly Hills’ 6th Cycle (2021-2029) Adopted Housing Element Thank you for submitting the City of Beverly Hills’ (City) housing element adopted October 12, 2021 and received for review on October 18, 2021. Pursuant to Government Code section 65585, subdivision (h), the California Department of Housing and Community Development (HCD) is reporting the results of its review.

The adopted housing element addresses most statutory requirements described in HCD’s July 30, 2021 review; however, additional revisions are necessary to fully comply with State Housing Element Law (Article 10.6 of the Gov. Code). The enclosed Appendix describes the revisions needed to comply with State Housing Element Law.

As a reminder, the City’s 6th cycle housing element was due October 15, 2021. As of today, the City has not completed the housing element process for the 6th cycle. The City’s 5th cycle housing element no longer satisfies statutory requirements. HCD encourages the City to revise the element as described above, adopt, and submit to HCD to regain housing element compliance.

For your information, pursuant to Assembly Bill 1398 (Chapter 358, Statutes of 2021), if a local government fails to adopt a compliant housing element within 120 days of the statutory deadline (October 15, 2021), then any rezoning to accommodate the regional housing needs allocation (RHNA), including for lower-income households, shall be completed no later than one year from the statutory deadline. Otherwise, the local government’s housing element will no longer comply with State Housing Element Law, and HCD may revoke its finding of substantial compliance pursuant to Government Code section 65585, subdivision (i).

Pursuant to Government Code section 65583.3, subdivision (b), the City must utilize standards, forms, and definitions adopted by HCD when preparing the sites inventory.

Please note, upon adoption of the housing element, the City must submit an electronic Ryan Gohlich, Director

version of the sites inventory with its adopted housing element to [email protected]. Please see HCD’s housing element webpage at https://www.hcd.ca.gov/community-development/housing-element/index.shtml for a copy of the form and instructions.

Several federal, state, and regional funding programs consider housing element compliance as an eligibility or ranking criteria. For example, the CalTrans Senate Bill (SB) 1 Sustainable Communities grant; the Strategic Growth Council and HCD’s Affordable Housing and Sustainable Communities programs; and HCD’s Permanent Local Housing Allocation consider housing element compliance and/or annual reporting requirements pursuant to Government Code section 65400. With a compliant housing element, the City meets housing element requirements for these and other funding sources.

We are committed to assisting the City in addressing all statutory requirements of State Housing Element Law. If you have any questions or need additional technical assistance, please contact Chelsea Lee, of our staff, at [email protected].

Sincerely,
Paul McDougall
Senior Program Manager
Enclosure
City of Beverly Hills’ 6th Cycle Adopted Housing Element Page 1 January 14, 2022

APPENDIX

CITY OF BEVERLY HILLS
The following changes are necessary to bring the City’s housing element into compliance with Article 10.6 of the Government Code. Accompanying each recommended change, we cite the supporting section of the Government Code.

Housing element technical assistance information is available on HCD’s website at http://www.hcd.ca.gov/community-development/housing-element/housing-element-memos.shtml.

Among other resources, the housing element section contains HCD’s latest technical assistance tool, Building Blocks for Effective Housing Elements (Building Blocks), available at http://www.hcd.ca.gov/community-development/building-blocks/index.shtml and includes the Government Code addressing State Housing Element Law and other resources.

A. Housing Needs, Resources, and Constraints

1. Affirmatively further[ing] fair housing in accordance with Chapter 15 (commencing with Section 8899.50) of Division 1 of Title 2…shall include an assessment of fair housing in the jurisdiction. (Gov. Code, § 65583, subd. (c)(10)(A).) The element now includes additional information on outreach conducted, a few maps, and marginal sites analysis for some of the fair housing areas but generally does not address this requirement. Please see HCD’s prior review for additional information and HCD’s data viewer and guidance at https://www.hcd.ca.gov/communitydevelopment/affh/index.shtml.

2. An inventory of land suitable and available for residential development, including vacant sites and sites having realistic and demonstrated potential for redevelopment during the planning period to meet the locality’s housing need for a designated income level, and an analysis of the relationship of zoning and public facilities and services to these sites. (Gov. Code, § 65583, subd. (a)(3).)
Parcel Listing: The element now identifies the anticipated affordability levels of units on identified sites, but still does not include revisions to clarify generic descriptions of existing uses of sites identified in the inventory. Please see HCD’s prior review for additional information.

Realistic Capacity: The element now includes minimal discussion that indicates allowable densities in the Mixed-Use Overlay Zone are higher than the default density for the City and lists recently approved projects in the R-4 zone that achieved densities between 30-59 units per acre. However, the element provides no analysis based on land-use controls, environmental constraints, infrastructure, and site improvements to demonstrate the calculation of residential capacity on identified sites. Please see HCD’s prior review for additional information.

Suitability of Nonvacant Sites: HCD’s prior review found the element must include analysis that demonstrates the potential for additional development of nonvacant sites.

City of Beverly Hills’ 6th Cycle Adopted Housing Element Page 2 January 14, 2022
In response, the element adds some information on ILV ratios and market conditions of sites in the Mixed-Use Overlay zone. However, the element does not provide sufficient analysis to demonstrate existing uses will discontinue in the planning period, analyze existing leases or contracts that would prevent redevelopment of sites, or provide evidence of the City’s past experience with converting existing uses to higher density residential development. Please see HCD’s prior review for additional information.

Environmental Constraints: HCD’s prior review found the element must describe any known environmental constraints or other conditions on identified sites that could impact housing development in the planning period. In response, the element now states, “while environmental constraints will require development to incorporate measures to mitigate potential hazards, these constraints are not expected to preclude housing development consistent with the regional housing needs allocation (RHNA),” (p. B-56).

This statement indicates the presence of constraints on sites identified; therefore, the element did not address this finding.

Replacement Requirements: HCD’s prior review found the element includes sites in the Mixed-Use Overlay Zone with existing residential uses. The element was not revised to address this requirement. Please see HCD’s prior review.

Accessory Dwelling Units (ADUs): The element now indicates that an additional 14 ADU permit applications were submitted in September 2021 to justify its projection of 150 ADUs in the planning period. The analysis should be based on permitted ADUs.

Further, the City did not address discrepancies between the City and HCD’s records on ADUs permitted in 2018, 2019, and 2020. The City must reconcile ADU figures with HCD records and rescale assumptions based on permitted ADUs.

3. An analysis of potential and actual governmental constraints upon the maintenance, improvement, or development of housing for all income levels, including the types of housing identified in paragraph (1) of subdivision (c), and for persons with disabilities as identified in the analysis pursuant to paragraph (7), including land use controls, building codes and their enforcement, site improvements, fees and other exactions required of developers, and local processing and permit procedures. (Gov. Code, § 65583, subd. (a)(5).)
Land-Use Controls: In response to HCD’s prior review to analyze development standards for impacts on achieving maximum densities, the element now includes additional examples of projects recently approved in the R-4 zone. In addition, the element addresses lot assemblage issues, noting that some of the R-4 projects involved singular lots and still achieved high densities. However, revisions added to Program

12.1 (Development Standards) to “study” and “consider” do not result in meaningful actions to address potential constraints on multifamily housing and this analysis.

Fees: In response to HCD’s prior review to analyze fees for impacts on development costs, the element now includes a statement that indicates Program 12.2 (Reduced Fees for Affordable Housing) commits the City to conducting a fee study to assess whether additional waivers can be granted for affordable housing projects. However, City of Beverly Hills’ 6th Cycle Adopted Housing Element Page 3 January 14, 2022
there are no revisions found in Program 12.2, nor is there an evaluation of fees. Please see HCD’s prior review.

Processing and Permit Procedures: In response to HCD’s prior review to analyze its permit and processing procedures for impacts on cost, supply, and built density, the element now adds minor revisions describing the design content of the “Residential Design Style Catalog,” which includes architectural features, materials, and pictures of each design style. These revisions do not address HCD’s findings. Please see HCD’s prior review.

Constraints on Persons with Disabilities:
• Family Definition: In response to HCD’s prior review, which found that the City’s definition of family acts as a constraint on persons with disabilities and is discriminatory, the City responded to HCD by noting that “the City believes that the current definition complies with State law and that no revisions are necessary or appropriate at this time. It is important to recognize that the existing definition is part of an integrated set of land use regulations that has been carefully crafted to protect the integrity of existing single-and-multi-family neighborhoods...” (Exhibit 1, Housing Element Comments and Responses). Based upon the City’s refusal to address these constraints, the adopted element still does not address this finding. Please see HCD’s prior review.
• Group Homes: Similarly, HCD’s prior review found that group homes for seven or more persons are excluded from most residential zones and did not evaluate approval requirements for impacts on objectivity and approval certainty. The City responded to HCD by noting that “the City believes the regulations for group homes for 7+ persons complies with State law” (Exhibit 1, Housing Element Comments and Responses). Based upon the City’s response, the adopted element still does not address this finding. Please see HCD’s prior review.

4. An analysis of potential and actual nongovernmental constraints upon the maintenance, improvement, or development of housing for all income levels, including the availability of financing, the price of land, the cost of construction, the requests to develop housing at densities below those anticipated in the analysis required by subdivision (c) of Government Code section 65583.2, and the length of time between receiving approval for a housing development and submittal of an application for building permits for that housing development that hinder the construction of a locality’s share of the regional housing need in accordance with Government Code section 65584. (Gov. Code, § 65583, subd. (a)(6).)
HCD’s prior review found the element must address requests to develop housing at densities below those anticipated in the sites inventory and the length of time between receiving approval for housing development and submittal of application for building permits. The element was not revised to address this requirement. Please see HCD’s prior review for additional information.

5. Analyze existing assisted housing developments that are eligible to change to non-lowincome housing uses during the next 10 years due to termination of subsidy contracts, City of Beverly Hills’ 6th Cycle Adopted Housing Element Page 4 January 14, 2022
mortgage prepayment, or expiration of use restrictions. (Gov. Code, § 65583, subd. (a)(9) through 65583(a)(9)(D).)
HCD’s prior review found the element must estimate the total costs of preserving at-risk units that are in danger of converting to market-rate during the next ten years. In response, the element presents confounding information that the earliest date of conversion for the Beverly Hills Senior Housing project is 2028 and is “technically classified as being at-risk of conversion...”; however, the “City has the right to purchase the upper floor for one dollar in 2041; therefore, this project is not at risk of conversion to market rate.” These revisions do not address HCD’s findings. Please see HCD’s prior review for additional information.

B. Housing Programs

1. Include a program which sets forth a schedule of actions during the planning period, each with a timeline for implementation, which may recognize that certain programs are ongoing, such that there will be beneficial impacts of the programs within the planning period, that the local government is undertaking or intends to undertake to implement the policies and achieve the goals and objectives of the housing element through the administration of land use and development controls, the provision of regulatory concessions and incentives, and the utilization of appropriate federal and state financing and subsidy programs when available. The program shall include an identification of the agencies and officials responsible for the implementation of the various actions. (Gov.

Code, § 65583, subd. (c).)
The element now includes revisions that satisfactorily addresses timeframes for Programs 11.5 and 12.1. However, there are no revisions to Programs 9.3 (Home Repair and Improvement) and 10.3 (Housing Trust Fund). In addition, Program 10,4 (Accessory Dwelling Units) still requires timeframes for creating pre-approved ADU plans and for outreach materials, including an ADU webpage.

2. Identify actions that will be taken to make sites available during the planning period with appropriate zoning and development standards and with services and facilities to accommodate that portion of the city’s or county’s share of the regional housing need for each income level that could not be accommodated on sites identified in the inventory completed pursuant to paragraph (3) of subdivision (a) without rezoning, and to comply with the requirements of Section 65584.09. Sites shall be identified as needed to facilitate and encourage the development of a variety of types of housing for all income levels, including multifamily rental housing, factory built housing, mobilehomes, housing for agricultural employees, supportive housing, single-room occupancy units, emergency shelters, and transitional housing. (Gov. Code, § 65583, subd. (c)(1).)
As noted in Finding A2, the element does not include a complete site analysis, therefore, the adequacy of sites and zoning were not established. Based on the results of a complete sites inventory and analysis, the City may need to add or revise programs City of Beverly Hills’ 6th Cycle Adopted Housing Element Page 5 January 14, 2022
to address a shortfall of sites or zoning available to encourage a variety of housing types.

3. The housing element shall contain programs which assist in the development of adequate housing to meet the needs of extremely low-, very low-, low- and moderateincome households. (Gov. Code, § 65583, subd. (c)(2).) In response to HCD’s prior review, the element now includes revisions that identify additional actions to assist low-, very low-, low- and moderate-income households in Program 10.6 (Partnerships with Affordable Housing Developers). However, none of these actions have corresponding timeframe commitments for implementation that will result in beneficial impacts during the planning period.

4. Address and, where appropriate and legally possible, remove governmental and nongovernmental constraints to the maintenance, improvement, and development of housing, including housing for all income levels and housing for persons with disabilities. The program shall remove constraints to, and provide reasonable accommodations for housing designed for, intended for occupancy by, or with supportive services for, persons with disabilities. (Gov. Code, § 65583, subd. (c)(3).) As noted in Findings A3 and A4, the element requires a complete analysis of potential governmental and nongovernmental constraints. Depending upon the results of that analysis, the City may need to add programs and address and remove or mitigate any identified constraints. In addition, while the element now includes revisions to Program

12.1 (Development Standards) that commit the City to amendments by 2024, it still contains terms including “studying” and “evaluating” that do not result in beneficial impacts during the planning period.

5. Promote and affirmatively further fair housing opportunities and promote housing throughout the community or communities for all persons regardless of race, religion, sex, marital status, ancestry, national origin, color, familial status, or disability, and other characteristics protected by the California Fair Employment and Housing Act (Part 2.8 (commencing with Section 12900) of Division 3 of Title 2), Section 65008, and any other state and federal fair housing and planning law. (Gov. Code, § 65583, subd. (c)(5).) As noted in Finding A1, the element must include a complete analysis of affirmatively furthering fair housing (AFFH). Based on the outcomes of that analysis, the element must add or modify programs.

6. The housing program shall preserve for low-income household the assisted housing developments identified pursuant to paragraph (9) of subdivision (a). The program for preservation of the assisted housing developments shall utilize, to the extent necessary, all available federal, state, and local financing and subsidy programs identified in paragraph (9) of subdivision (a), except where a community has other urgent needs for which alternative funding sources are not available. The program may include strategies that involve local regulation and technical assistance. (Gov. Code, § 65583, subd. (c)(6).)
City of Beverly Hills’ 6th Cycle Adopted Housing Element Page 6 January 14, 2022
As noted in Finding A5, the element must complete an analysis of units at risk of conversion to market rate during the planning period. The element must add or modify programs based on the outcomes of that analysis.

7. Develop a plan that incentivizes and promotes the creation of ADU that can be offered at affordable rent, as defined in Section 50053 of the Health and Safety Code, for very low, low-, or moderate-income households. For purposes of this paragraph, “ADU” has the same meaning as “ADU” as defined in paragraph (4) of subdivision (i) of Section 65852.2. (Gov. Code, § 65583, subd. (c)(7).)
The element now includes revisions that address some timeframes to actions identified in Program 10.4 (Accessory Dwelling Units). However, other actions still lack specified timeframes other than indicating “throughout the planning period,” including amending the zoning code to remove barriers regarding ADUs in multi-family zones, pre-plan checks and pre-approved ADU plans, and creating an ADU webpage.

C. Public Participation
Include a diligent effort by the local government to achieve public participation of all economic segments of the community in the development of the housing element, and the program shall describe this effort. (Gov. Code, § 65583, subd. (c)(9).) The element now includes revisions that address when the draft was disseminated and how public comments were incorporated. The element also includes clarifying revisions on the types of outreach conducted, including an additional Planning Commission meeting, mailings to property owners, and an ADU survey. However, these revisions are insufficient in demonstrating that all economic segments of the community, particularly low-and moderate-income households and organizations that represent them, were involved in the development of the housing element. Please see HCD’s prior review.

STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor

DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT

DIVISION OF HOUSING POLICY DEVELOPMENT
2020 W. El Camino Avenue, Suite 500
Sacramento, CA 95833
(916) 263-2911 / FAX (916) 263-7453
www.hcd.ca.gov
November 28, 2022
Timothea Tway, Director
Community Development Department
City of Beverly Hills
455 North Rexford Drive, First Floor
Beverly Hills, CA 90210
Dear Timothea Tway:

RE: City of Beverly Hills’ 6th Cycle (2021-2029) Adopted Housing Element Thank you for submitting the City of Beverly Hills’ (City) housing element which was adopted October 12, 2021 and received for review on September 29, 2022. The September 29, 2022, revisions are allowed pursuant to Resolution 21-R-13370. Pursuant to Government Code section 65585, subdivision (h), the California Department of Housing and Community Development (HCD) is reporting the results of its review. In addition, HCD considered comments from Californians for Homeownership pursuant to Government Code section 65585, subdivision (c).

The adopted housing element with draft revisions addresses many statutory requirements described in HCD’s January 14, 2022 letter; however, additional revisions are necessary to fully comply with State Housing Element Law (Article 10.6 of the Gov.

Code). The enclosed Appendix describes the revisions needed to comply with State Housing Element Law.

Public participation in the development, adoption and implementation of the housing element is essential to effective housing planning. During the housing element revision process, the City must continue to engage the community, including organizations that represent lower-income and special needs households, by making information regularly available while considering and incorporating comments where appropriate. Please be aware, any revisions to the element must be posted on the local government’s website and to email a link to all individuals and organizations that have previously requested notices relating to the local government’s housing element at least seven days before submitting to HCD.

Several federal, state, and regional funding programs consider housing element compliance as an eligibility or ranking criteria. For example, the CalTrans Senate Bill Timothea Tway, Director

(SB) 1 Sustainable Communities grant; the Strategic Growth Council and HCD’s Affordable Housing and Sustainable Communities programs; and HCD’s Permanent Local Housing Allocation consider housing element compliance and/or annual reporting requirements pursuant to Government Code section 65400. With a compliant housing element, the City meets housing element requirements for these and other funding sources.

For your information, some general plan element updates are triggered by housing element adoption. HCD reminds the City to consider timing provisions and welcomes the opportunity to provide assistance. For information, please see the Technical Advisories issued by the Governor’s Office of Planning and Research at:
https://www.opr.ca.gov/planning/general-plan/guidelines.html.

HCD appreciates the hard work and dedication you and your team during the review. We are committed to assisting the City in addressing all statutory requirements of State Housing Element Law. If you have any questions or need additional technical assistance, please contact Chelsea Lee, of our staff, at [email protected].

Sincerely,
Paul McDougall
Senior Program Manager
Enclosure
City of Beverly Hills’ 6th Cycle (2021-2029) Adopted Housing Element Page 1 November 28, 2022

APPENDIX

CITY OF BEVERLY HILLS
The following changes are necessary to bring the County’s housing element into compliance with Article 10.6 of the Government Code. Accompanying each recommended change, we cite the supporting section of the Government Code.

Housing element technical assistance information is available on HCD’s website at https://www.hcd.ca.gov/hcd-memos. Among other resources, the housing element section contains HCD’s latest technical assistance tool, Building Blocks for Effective Housing Elements (Building Blocks), available at https://www.hcd.ca.gov/building-blocks and includes the Government Code addressing State Housing Element Law and other resources.

A. Housing Needs, Resources, and Constraints

1. An inventory of land suitable and available for residential development, including vacant sites and sites having realistic and demonstrated potential for redevelopment during the planning period to meet the locality’s housing need for a designated income level, and an analysis of the relationship of zoning and public facilities and services to these sites. (Gov. Code, § 65583, subd. (a)(3).)
Realistic Capacity: The element did not address HCD’s previous finding. The element must include an estimate of the number of units that can be accommodated on each site in the inventory based on the land use controls and site improvements, typical densities of existing or approved residential developments at a similar affordability level, and on the current or planned availability and accessibility of sufficient water, sewer, and dry utilities. As an example, the element could identify sites in the inventory by zones and relate the characteristics of individual parcels in the inventory to its past track record of recently approved projects by zone to establish its realistic capacity methodology. For sites zoned for nonresidential uses, e.g., commercial and mixed-use zones, the element must describe how the estimated number of residential units for each site was determined. In addition, the estimate must also account for land use controls such as allowing 100 percent nonresidential uses.

Suitability of Nonvacant Sites: While the element now includes additional discussion in Appendix C of the criteria that the City utilized to remove additional parcels in the sites inventory that were unlikely to be redeveloped, it must still support the potential for additional residential development on the sites remaining in the inventory. This is especially significant given that the sites inventory includes parcels that seem to have viable businesses including medical uses, Class A and B office buildings, and stores including a Starbucks, Neiman Marcus, and CVS with little to no analysis on the likelihood of these uses discontinuing during the planning period. Please see HCD’s prior review for additional information. The element should include current market demand for the existing use, provide analysis of existing leases or contracts that would perpetuate the existing use or prevent additional residential development and include current information on development trends and market conditions in the City and relate those trends to the sites identified. While the element includes past experiences City of Beverly Hills’ 6th Cycle (2021-2029) Adopted Housing Element Page 2 November 28, 2022
converting existing uses to higher density residential development, it must relate those trends to the sites identified in the inventory. The element could also consider indicators such as age and condition of the existing structure expressed developer interest, low improvement to land value ratio, and other factors.

Accessory Dwelling Units (ADUs): In response to HCD’s prior review, the element now includes additional information that states 19 ADUs have been permitted in 2021 (pgs.

C-13-14). Even with this additional data, it is not clear if the City’s assumed production level of 150 ADUs will be achievable during the planning period. To further supplement its assumptions, the City may consider adding trends for 2022, in addition to its programs. The City may consider including trends for 2022 to further supplement its ADU assumptions in addition to including actions in Program 10.4 (Accessory Dwelling Units) that aggressively promote and incentivize ADU construction. Further, the City must still reconcile ADU figures with HCD records.

2. An analysis of potential and actual governmental constraints upon the maintenance, improvement, or development of housing for all income levels, including the types of housing identified in paragraph (1) of subdivision (c), and for persons with disabilities as identified in the analysis pursuant to paragraph (7), including land use controls, building codes and their enforcement, site improvements, fees and other exactions required of developers, and local processing and permit procedures. (Gov. Code, § 65583, subd. (a)(5).)
Constraints on Persons with Disabilities:

Family Definition: The element continues to not address this finding. Please see HCD’s prior review for additional information.

Group Homes: The element continues to not address this finding. Please see HCD’s prior review for additional information.

3. An analysis of potential and actual nongovernmental constraints upon the maintenance, improvement, or development of housing for all income levels, including the availability of financing, the price of land, the cost of construction, the requests to develop housing at densities below those anticipated in the analysis required by subdivision (c) of Government Code section 65583.2, and the length of time between receiving approval for a housing development and submittal of an application for building permits for that housing development that hinder the construction of a locality’s share of the regional housing need in accordance with Government Code section 65584. (Gov. Code, § 65583, subd. (a)(6).)
Developed Densities and Permit Times: In response to HCD’s prior review, the element now includes revisions in Program 12.3 (Efficient Development Permit Review) to acknowledge that some projects have been approved with lower densities. However, the element must be revised to include the analysis as described in the City’s comment matrix to HCD.

City of Beverly Hills’ 6th Cycle (2021-2029) Adopted Housing Element Page 3 November 28, 2022
B. Housing Programs

1. Include a program which sets forth a schedule of actions during the planning period, each with a timeline for implementation, which may recognize that certain programs are ongoing, such that there will be beneficial impacts of the programs within the planning period, that the local government is undertaking or intends to undertake to implement the policies and achieve the goals and objectives of the housing element through the administration of land use and development controls, the provision of regulatory concessions and incentives, and the utilization of appropriate federal and state financing and subsidy programs when available. The program shall include an identification of the agencies and officials responsible for the implementation of the various actions. (Gov. Code, § 65583, subd. (c).) In response to HCD’s prior review, the element now includes satisfactory revisions to Programs 10.3 (Housing Trust Fund) and 10.4 (Accessory Dwelling Units). However, additional revisions are required to address HCD’s finding for Program 9.3 (Home Repair and Improvement). Specifically, the element cites that The Handyworker Program was discontinued, but should be revised to clarify what actions the City will initiate to “encourage” the reestablishment of the program given that it is intended to provide funding for scheduled accessibility improvements by 2025, and include other actions if funding from this program is not actualized in the planning period.

2. Identify actions that will be taken to make sites available during the planning period with appropriate zoning and development standards and with services and facilities to accommodate that portion of the city’s or county’s share of the regional housing need for each income level that could not be accommodated on sites identified in the inventory completed pursuant to paragraph (3) of subdivision (a) without rezoning, and to comply with the requirements of Section 65584.09. Sites shall be identified as needed to facilitate and encourage the development of a variety of types of housing for all income levels, including multifamily rental housing, factory-built housing, mobilehomes, housing for agricultural employees, supportive housing, single-room occupancy units, emergency shelters, and transitional housing. (Gov. Code, § 65583, subd. (c)(1).)
As noted in Finding A1, the element does not include a complete site analysis; therefore, the adequacy of sites and zoning were not established. Based on the results of a complete sites inventory and analysis, the City may need to add or revise programs to address a shortfall of sites or zoning available to encourage a variety of housing types.

3. Address and, where appropriate and legally possible, remove governmental and nongovernmental constraints to the maintenance, improvement, and development of housing, including housing for all income levels and housing for persons with disabilities. The program shall remove constraints to, and provide reasonable accommodations for housing designed for, intended for occupancy by, or with supportive services for, persons with disabilities. (Gov. Code, § 65583, subd. (c)(3).) As noted in Findings A2 and A3, the element requires a complete analysis of potential governmental and nongovernmental constraints. Depending upon the results of that City of Beverly Hills’ 6th Cycle (2021-2029) Adopted Housing Element Page 4 November 28, 2022
analysis, the City may need to add programs and address and remove or mitigate any identified constraints. In addition, while the element included program commitments to Program 12.1 (Development Standards), additional revisions are required to fully address HCD’s finding. Specifically, Program 12.1 indicates that the City will “consider an ordinance to streamline the approval process to allow Director-level approvals for Architectural Review of multi-family housing projects with affordable housing…” but this does not demonstrate a specific commitment to address constraints related to permit processing procedures. The program should be amended to include specific and measurable actions to demonstrate a beneficial impact during the planning period.

Moreover, the action to “review the mixed-use overlay zone regulations by 2026 to assess how these regulations have been utilized by projects…” should be revised to an earlier timeframe for implementation so as to result in beneficial impacts during the planning period.

4. Affirmatively further[ing] fair housing in accordance with Chapter 15 (commencing with Section 8899.50) of Division 1 of Title 2…shall include an assessment of fair housing in the jurisdiction. (Gov. Code, § 65583, subd. (c)(10)(A).) Promote and affirmatively further fair housing opportunities and promote housing throughout the community or communities for all persons regardless of race, religion, sex, marital status, ancestry, national origin, color, familial status, or disability, and other characteristics protected by the California Fair Employment and Housing Act (Part 2.8 (commencing with Section 12900) of Division 3 of Title 2), Section 65008, and any other state and federal fair housing and planning law. (Gov. Code, § 65583, subd. (c)(5).) In response to HCD’s prior review, the element now includes several revisions to Appendix A related to public outreach, contributing factors, other relevant factors, local data and knowledge, and housing mobility and new housing choice strategies.

However, additional information is required to fully address this finding. As an example, many of the program actions listed on pages A-46-50 and in Program 11.1 (Affirmatively Further Fair Housing (AFFH)) are limited to conducting outreach, does not include geographic targeting for program metrics and milestones, and includes language such as “study,” “continue,” or “maintain” that does not result in tangible outcomes that will overcome patterns of segregation and foster inclusive communities free from barriers that restrict access to opportunity. Additionally, the element, among other things, must still include an analysis at the local and regional level that assesses data, trends, and patterns for each of the fair housing areas (outreach and enforcement, R/ECAPs and RCAAs, access to opportunity, segregation and integration, and disproportionate housing needs and displacement risk). In addition, the element must also include an analysis demonstrating whether sites identified to meet the Regional Housing Needs Allocation (RHNA) are distributed throughout the community in a manner that affirmatively furthers fair housing. For more information, please visit https://www.hcd.ca.gov/affirmatively-furthering-fair-housing. To assist with the analysis, HCD will also send a sample under separate cover.

5. The housing program shall preserve for low-income household the assisted housing developments identified pursuant to paragraph (9) of subdivision (a). The program for preservation of the assisted housing developments shall utilize, to the extent necessary, City of Beverly Hills’ 6th Cycle (2021-2029) Adopted Housing Element Page 5 November 28, 2022
all available federal, state, and local financing and subsidy programs identified in paragraph (9) of subdivision (a), except where a community has other urgent needs for which alternative funding sources are not available. The program may include strategies that involve local regulation and technical assistance. (Gov. Code, § 65583, subd. (c)(6).) In response to HCD’s prior review, the element now includes additional information in Appendix A on the expiring affordability covenant for the Beverly Hills Senior Housing project (pgs. A-23-24). However, these revisions do not otherwise address HCD’s finding. Program 9.7 (Monitoring Affordable Housing and Residential Displacement) should be revised to clarify that the City intends to maintain the affordability of the project regardless of the expiration of the covenant.

MATTHEW GELFAND, COUNSEL
[email protected]
TEL: (213) 739-8206
November 23, 2022

VIA EMAIL
Chelsea Lee
California Department of Housing & Community Development 2020 W. El Camino Ave., Suite 500
Sacramento, CA 95833
Email: [email protected]
RE: Comments on City of Beverly Hills Housing Element.

Dear Ms. Lee,
Californians for Homeownership is a 501(c)(3) organization devoted to using legal tools to address California’s housing crisis. We are writing to comment on the new draft sixth cycle Housing Element of the City of Beverly Hills, submitted to HCD on September 29, 2022. The revised Housing Element still fails to comply with state law and does not adequately address many of HCD’s comments laid out in its review of the City’s prior adopted housing element.

Duplicate and Double-Counted Site
The parcel located at APN 4331-001-049 appears twice in the City’s sites inventory, and has been double-counted in the City’s calculation of its lower-income site capacity. For reasons explained in more detail below, it is unclear exactly how many low- and very low-income units the City attributed to this site, but the removal of the site has the potential to bring the City’s site capacity below its RHNA requirement for low-income units.

Non-Specific Existing Use Information
In HCD’s prior review, the City was specifically told that the column of the parcel listing that describes the existing use of each parcel needed more information to demonstrate development potential. However, the new housing element does not add more information and continues to describe sites using non-specific terms such as “retail” and “office” that do not give a realistic idea of the conditions of each site that would make residential uses likely or not.

Inadequate Support for Nonvacant Sites
The sites inventory in the City’s draft Housing Element does not meet the requirements in Government Code Section 65583.2(g). The housing element does not adequately account for the impediment created by the existing uses on the listed sites, including the possibility that a site will be maintained in its current use rather than redeveloped during the planning period.

November 23, 2022

Many sites listed in the inventory have existing uses that are likely to continue throughout the planning period. A large number are Class A and B office buildings that seem to have been included merely because their fenestration and other key features could allow conversion to residential, without any reason to believe that the existing office use will actually end by 2029— and a lot of reasons to believe they won’t.

In some cases, it is easy to determine from leasing websites that these buildings are (1) mostly occupied, and (2) offering long-term leases to new tenants, foreclosing redevelopment by 2029. For example, based on listings available on LoopNet, 8383 Wilshire Blvd. appears to be an almost-90% occupied office building with a recently renovated lobby, high-quality management, and very active leasing efforts to fill the small amounts of available office space, some of which have brand new build-outs. As another example, 8500 Wilshire Blvd. appears to be a largely-occupied, 2008-renovated medical office building that is offering 10-year leases to new tenants. We do not believe that the City has any evidence that the existing uses in these and most of the other office buildings listed on the housing element will discontinue by 2029.

Because the City’s sites inventory barely provides the necessary number of very low- and low-income units, without any meaningful buffer, the exclusion of these sites will require the City to identify and rezone other sites in order to meet its RHNA allocation.

Medical Uses
The housing element specifically states that when the City was developing its sites inventory, it considered certain characteristics that render a site not likely to be redeveloped and therefore inappropriate for inclusion. One listed exclusion characteristic was parcels with existing medical uses, especially ones that “are occupied by prominent medical groups (i.e. Cedars-Sinai, UCLA Health, etc).” Despite conceding that these types of sites should not be included in the sites inventory due to their lack of redevelopment potential, the City nevertheless included 8501 Wilshire Blvd., which contains a major pediatrics care facility operated by Cedars-Sinai, and 8641 Wilshire Blvd., which contains a primary care practice and 8 specialty care practices run by UCLA Health. These sites have existing uses that preclude their redevelopment as housing.

Misalignment Between Development Potential and Unit Count Calculation Because the City’s inclusion of many of its larger sites is based on the potential conversion of large office buildings, or the partial redevelopment of parking podiums and the like, it is important to understand whether the unit counts included in the City’s housing element account for the type of redevelopment being contemplated. This does not appear to be the case, but the housing element contains so little information about how the unit counts for each site were calculated that it is impossible to say for certain.

For example, 8949 Wilshire Blvd. is home to the Motion Picture Academy’s Samuel Goldwyn Theater, which houses movie screenings and other public events. By all appearances, the theater will remain throughout the planning period, and we understand that the City may have included it with the understanding that the theater would remain and the rest of the building would November 23, 2022

be converted. But the assigned unit count does not appear to account for this form of redevelopment.

Similarly, we understand that a number of office buildings have been included based on their potential for conversion, or for partial redevelopment of a parking podium or portion of the site. But there is no information to suggest that the unit counts used for these sites account for the fact that redevelopment would encompass only part of the site, or be limited to the envelope of the existing structure.

Lack of Redevelopment Potential for Sites to Meet Lower Income RHNA The housing element concedes that “it is unlikely that a high percentage of the parcels within the MU Overlay Zone would be developed with mixed-use projects during the planning period” (C-11). The City nevertheless contends that its RHNA can be satisfied through a development of a “portion” of the listed sites.

Perhaps this is true for the moderate and above moderate RHNA allocations. But the surpluses of sites for the very low and low income categories are so small that it is unlikely that the City would be able to meet its requirements even assuming development of the City’s sites at nearly 100% of the maximum unit potential. The City must provide more evidence of the likelihood of development at the unit counts listed in its housing element, as well as more sites to ensure it meets its lower income RHNA requirements.

Lack of Clarity for Distribution of Units Between Income Levels Almost the entirety of the housing element’s sites inventory to meet the City’s RHNA is made up of underutilized sites in the City’s Mixed Use (MU) Overlay Zone. However, the sites inventory does not provide enough information to understand how each parcel was assigned to its income category. The housing element states that since the allowable density is greater than 30 units/acre in that zone, all sites are suitable for lower-income housing unless other factors apply, such as the state law minimum size requirement, but there is no analysis of factors that make a site more or less likely to redevelop at a certain income level. Indeed, the housing element appears to assume without evidence that all of the sites not suitable for lower-income development will be developed at 100% moderate-income levels.

Consistent with these assumptions, Table C-3 lists the number of lower income or moderate income units that can be accommodated on each site. But Table C-1 breaks down the underutilized sites into very low, low, moderate, and above moderate income categories. We have been unable to ascertain how the numbers in the two tables relate to one another, and there is no information in the document as to how the sites were assigned to particular income levels, nor does the housing November 23, 2022

element identify which sites are being counted as very low instead of low, or being counted as above moderate instead of moderate.

Instead, the City seems to have simply distributed the numbers in the manner necessary to determine that its RHNA requirement has been met. This bootstrapping approach is legally inadequate and we urge HCD not to accept it.
* * *
Thank you for considering these comments as you review the City’s housing element.

Sincerely,
Matthew Gelfand
From: Allen Shamooilian
To: City Clerk
Subject: Re: For reading relating to F1 tonight please
Date: Tuesday, February 21, 2023 10:31:00 PM
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Dear Councilmembers and staff,
Thanks as always for your many hours of often thankless hard work and dedication.

As a stakeholder in various aspects of life in our great community, including as a property owner – I would like to again point out some major missed opportunities have an HCD approved Housing Element and avoid all the mess that comes without having one.

The editorial from this week in the LA Times titled “California Housing Development Remains Abysmal Despite Reforms” spells out much that must be considered. In a nutshell, the Mixed Use Ordinance ought to be less restrictive.

I submit they for Beverly Hills, that means greater height and density, especially for properties on the south side of the street (because of reduced shadow), lots that have larger than average separation from nearby residences, and those at major intersections.

Beverly Hills in various forums, including the General plan, the work of the Southeast Task Force, the past General Plan topic committees, and in major studies commissioned by the City identify certain properties as “Anchor” locations and at least one property that we own as also being a “Gateway” location. It is at these locations where greater height and density is often advised due to proximity to mass transit, unique ability to showcase exceptional architecture, greater accessibility, and more.

One such report by the Urban Land Institute said, “Development potential for key “gateway” locations (e.g., larger intersections) should be identified. These locations should be targeted for additional height and density and should be highlighted as areas where signature architectural buildings should be developed.” The same report describes the southwest corner of Wilshire and Robertson in particular: “the intersection of Wilshire and Robertson, where Wilshire Boulevard bends, provides an excellent opportunity to create a terminating vista”.

It is a shame to spend so much in terms of time and money only to overlook these recommendations that were generated.

I am available at your request to discuss ideas on the subject of improvements to the Mixed Use Overlay Zone in general and specific insights about Anchor and Gateway locations like ours.

On a separate note, please note that I am excited about what the Cheval Blanc project will do for the city as are a massive number of family, friends, and colleagues.

Best regards,
Allen Shamooilian
From: Mala Stieglitz
To: City Clerk
Subject: Please Read At City Council Hearing...Thanks
Date: Monday, February 6, 2023 10:14:28 PM
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Dear Mayor Bosse and City Councilmembers,
I've been a resident of Beverly Hills for over 50. years. I love the city with all my heart. It's a been such a joy and a privilege to reside here. That said, I feel like the city has not been pro-active enough to develop additional apartment units for the next generation of residents. We need to build places that our children and grandchildren can afford. I kindly ask that any measures to protect existing tenants are balanced by the need for additional housing.

Yours,
Mala Stieglitz
From: Chloe Chen
To: City Clerk
Subject: Fw: housing element/mixed use
Date: Tuesday, February 21, 2023 9:13:49 AM
Hi,
Please see a comment below for the Item F-1 - the Housing Element. Thanks! Chloe Chen
Senior Planner
Long Range Planning
Community Development Department
p (310) 285-1194
e [email protected]
From:

Sent: Monday, February 20, 2023 4:28 PM
To: Lili Bosse <[email protected]>; 'Lester Freedman' ; 'Julian Gold' >; John Mirisch <[email protected]>; [email protected] <[email protected]>
Cc: Timmi Tway <[email protected]>; Chloe Chen <[email protected]> Subject: housing element/mixed use
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Dear Mayor and Council Members: while Tuesday’s hearing is focused on the entirety of the proposed Housing Element, a subset of that, as mentioned in the reports, relates to the newly created Mixed Use Overlay Zones as a potential for creating new housing. Unfortunately, there are not sufficient development incentives for such developments in these zones because of height and density limitations even with State density bouses. Commercial land in these designated areas sell for at least 2 – 3 times the amount per Sq ft as R 4 properties. As such, some added height and density should be allowed to offset the additional cost beyond what is currently allowed. . Recently the city approved an apartment project in an R4 zone with state density bonus at 6 stories..

Allowing 7 stories on a mixed use Wilshire site, would go a long way to provide a necessary incentive to purchase and develop mixed use on Wilshire without displacing any residents. On Wilshire, the bulk and massing of a building can be located more on the Wilshire side with greater setbacks required in the rear, reducing impacts on the residents. Thank you for your consideration of these issues.

From:

To:

Subject:

Date:

Anne Arenson
City Clerk
BH City Council Hearing on 2/21/23 (Housing Shortage Comment) Monday, February 20, 2023 7:08:38 PM
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________________________________
Dear Council members,
There is a serious housing shortage, particularly of affordable units both in our state as well as in our community.

We all need to do our part. Not just because the state says so but because it's the right thing to do. It's clear that the best place to put such housing in a city like Beverly Hills is in the commercial districts like along Wilshire Boulevard. Instead of more offices, we would be better served having more housing. We say this as community members that live on the block north of Wilshire ( North Oakhurst Drive) and might be impacted by additional development. NIMBYism is not for us and it should not be for you. Keep up the great work.

Sincerely,
Dr. Howard Winter and Dr. Anne Arenson Winter.

Attachment 9
Public Correspondence Received Since
2-21-2023 City Council Meeting
March 17, 2023
Gustavo Velasquez, Director
California Department of Housing & Community Development (HCD) 2020 West El Camino Avenue, Suite 500
Sacramento, CA 95833
Dear Director Velasquez:

Thank you for the opportunity to comment on the process of updating the Housing Element of the City of Beverly Hills’ general plan. We are writing on behalf of Abundant Housing LA (AHLA) and YIMBY Law regarding Beverly Hills’ adopted 6th Cycle Housing Element (HE) 1 .

Abundant Housing LA is a pro-housing, nonprofit advocacy organization working to help solve Southern California’s housing crisis, and YIMBY Law’s mission is to make housing in California more accessible and affordable through enforcement of state housing law.

Executive Summary
We urge HCD not to certify Beverly Hills’ adopted HE until it is revised to fully comply with the letter and spirit of state housing element law. This letter will analyze the plan’s programs related to the sites inventory, government constraint removal, funding and incentives for affordable housing, tenant protections, and affirmatively furthering fair housing in light of our previous comments.

On the sites inventory, the HE fails to account for the likelihood of development, includes a problematic treatment of in-pipeline projects and is missing a no net loss buffer. On constraints, we are concerned about extreme parking requirements, ambiguous commitments to promote ADUs, residential estate zoning and late implementation of some programs. Regarding funding and incentives for affordable housing, improvements are needed to the density bonus program, better analysis is needed for the inclusionary zoning program and the city needs more robust local funding for affordable housing. Tenant protections are strong but not strong enough to overcome the negative effects of the city’s housing shortage. Beverly Hills must also acknowledge its existing de facto segregated living patterns and create more housing opportunities throughout the city by pulling back single-family zoning to affirmatively further fair housing.
1 On 10/16/2020, 6/7/2021, 9/15/2021, 10/20/2021 and 2/21/2023 AHLA shared letters with Beverly Hills and HCD, regarding drafts of the HE, providing comments on how Beverly Hills should fulfill both the letter and the spirit of housing element law. On 11/28/2022, HCD sent a letter to Beverly Hills regarding its adopted 6th Cycle housing element, identifying corrections that need to be made to obtain certification of the plan. Beverly Hills subsequently adopted a HE on 2/21/2023 which was received for review by HCD on 3/13/2023. The comments in this letter are based on the redlined 2/21/2023 adopted HE posted to the City’s website here.

I. Sites Inventory
We remain concerned about several aspects of the sites inventory A. Failure to account for likelihood of development
Beverly Hills uses a set of screening criteria to make judgments about which non vacant sites are more or less likely to be redeveloped during the planning period, but is not transparent about its realistic capacity calculations and the full set of assumptions that underlie those calculations.

Beverly Hills articulates criteria to exclude sites from the inventory. Many are related to the idea that properties with a high improvements to land value (ILV) ratio are less likely to redevelop.

For example, excluding some properties based on the presence of buildings over three stories in height (excluding parking) and properties with recent renovations. Certain existing uses were also excluded, such as medical uses and car dealerships 2 . Other criteria are laid out indicating a
property would be more likely to be included in the inventory. These include lack of maintenance, owner marketing activities indicating a high vacancy rate, sites with shorter 1-2 story) buildings and surface parking, larger parcels with taller (3 or more story) buildings, and others
3 . In the detailed sites inventory table
4 Beverly Hills lists the number of units expected
from each property without laying out basic information that would allow proper assessment of the assumptions involved. For example, the table should, but does not, list the maximum number of units allowed on each site and then list the number of units actually expected. The table should also, but does not, provide a total of the number of homes expected. Typically housing elements use an adjustment factor to account for the fact that development standards make achieving the maximum theoretical density difficult to achieve in practice, justified by experience with similar projects in the past. Furthermore, while the screening criteria are somewhat helpful at identifying properties that may be more likely to redevelop during the planning period, this is not the same as producing a rigorous quantified estimate of the likelihood of development. Just because one property may be more likely to redevelop than another, it does not necessarily follow that the probability is 100%. Failure to properly account for the likelihood of development means the plan risks underperforming when it comes to the city’s future housing production.

Beverly Hills permitted just 244 homes during the 5th Cycle 5 ; its population density is about half
that of Miami Beach, another haven for the ultrawealthy, and about half that of Santa Monica’s density
6 . So while the City exceeded its low 5th cycle RHNA target of 3 homes, it must plan for about 13 times its 5th Cycle production to meet its 6th Cycle RHNA target of 3,104 homes. 6 Santa Monica is another affluent city located nearby in Los Angeles County. Density figures are based on population per square mile in 2020. “Quick Facts.” US Census Bureau. 5 General Plan Annual Progress Report Dashboard, slide 11. California Department of Housing and Community Development.
4 Beverly Hills 2/21/2023 Adopted Housing Element, redlined version, page C-32 (PDF page 194). 3 Beverly Hills 2/21/2023 Adopted Housing Element, redlined version, page C-5 (PDF page 167). 2 Beverly Hills 2/21/2023 Adopted Housing Element, redlined version, page C-4 (PDF page 166). 2 B. Problematic treatment of in-pipeline projects
Table C-2 (Approved Projects) details the city’s approved projects pipeline 7 . We are concerned
that Beverly Hills is assuming that all approved projects are 100% likely to be permitted, instead of estimating the actual probability in light of past experience. A planning entitlement is not a guarantee that a project will ultimately obtain construction permits and get built. Factors, including rising interest rates and other economic conditions, can change developers’ plans.

Given that 519 housing units are expected from this source (about 17% of the overall RHNA), it is important to estimate the likelihood of projects receiving construction permits with reference to historical experience in Beverly Hills.

C. Absence of a “no net loss” buffer
Table C-1 (Residential Sites Summary)
8 shows that Beverly Hills is not including the buffer of 15-30% excess zoned capacity recommended by HCD
9 . Having a buffer is especially important
for the lower-income RHNA. Since state law requires that adequate sites be available at all times during the planning period, the absence of a buffer places Beverly Hills at high risk of having to undertake cumbersome and inefficient ad hoc rezoning actions if projects are developed at less than the anticipated density. Beverly Hills should revise the plan to include a credible buffer in line with HCD’s recommendations.

II. Government Constraint Removal
A. Extreme parking requirements
Beverly Hills requires a breathtaking seven parking spaces per house with nine or more bedrooms, as well as two spaces for a one bedroom apartment and four spaces for an apartment with five or more bedrooms
10 . These requirements are extreme. Failing to address this, the city vaguely proposes to allow more flexibility in the type (e.g. uncovered, covered enclosed) and location of parking, but not more flexibility in the amount of parking required 11 . A
growing mountain of scholarship has shown that parking requirements are set arbitrarily, make housing more expensive and encourage people to drive more than they otherwise would, exacerbating our housing affordability, environmental and social equity problems 12 .
12 Shoup, Donald, ed. (2018). Parking and the City. Routledge. 11 Beverly Hills 2/21/2023 Adopted Housing Element, redlined version, page 489 (PDF page 31). 10 Beverly Hills 2/21/2023 Adopted Housing Element, redlined version, page B-17 (PDF page 117). 9 Kirkeby, Megan (2020). “Housing Element Site Inventory Guidebook,” page 22. California Department of Housing and Community Development.
8 Beverly Hills 2/21/2023 Adopted Housing Element, redlined version, page C-2 (PDF page 164). 7 Beverly Hills 2/21/2023 Adopted Housing Element, redlined version, page C-3 (PDF page 165). 3 B. Accessory Dwelling Units (ADU) ambiguity
In Program 10.4
13 , regarding ADUs, Beverly Hills falls into some ambiguous and contradictory language. The program commits to adopt an ADU ordinance by 2023 that would allow ADUs that “exceed state required minimums.” This language is unclear. Is it a reference to the minimum number of ADUs allowed on a property? The minimum floor area (which wouldn’t make sense because ADUs can already exceed the minimum floor area, so maybe the intent is “maximum floor area”)? Later in the program description the date to update the ADU ordinance is given as “2023, 2024 and 2025.” This is an unusual way to specify the date by which the program is to be completed. Beverly Hills should update its ADU ordinance to align with state law or, better yet, facilitate ADUs even more, by the end of 2023.

C. Residential estate zoning
Beverly Hills has several different types of single-family zoning, some of which require extremely low density, even by the standards of Southern California suburbia. For example, in the Hillside and Trousdale Estates subareas, the minimum lot area is one acre 14 . This means that even with
an SB 9 (2021) lot split and duplex project, the density allowed would quadruple to just four units per acre, which is still less dense than many standard single-family subdivisions.

Residential estate zoning practices such as these are exclusionary on their face. Is it any surprise that in Beverly Hills over 56%15 of renters are cost burdened by their housing? D. Late implementation
Some of Beverly Hills’ constraint removal programs could be positive, but would be implemented so late in the planning period that they would have little beneficial effect in achieving the 6th Cycle RHNA. Program 12.1
16 proposes to create an adaptive reuse program
by 2028 and to create objective design standards by 2026, more than half way through the planning period, which ends in 2029, and well past the rezoning deadline of February 2025. In this example, the programmatic commitments are also vague, calling their effectiveness into question.

III. Funding and Incentives for Affordable Housing
The HE should be more thoughtful about its strategy to promote deed-restricted affordable housing.
16 Beverly Hills 2/21/2023 Adopted Housing Element, redlined version, page 490 (PDF page 32). 15 “Table DP04, Selected Housing Characteristics.” 2021 five-year estimates for Beverly Hills. Cost burden is defined as paying at least 30% of income towards housing costs. 14 Beverly Hills 2/21/2023 Adopted Housing Element, redlined version, page B-9 (PDF page 109). 13 Beverly Hills 2/21/2023 Adopted Housing Element, redlined version, page 475 (PDF page 17). 4 A. Density bonus ordinance
Beverly Hills’ commitment to strengthen its density bonus ordinance is weak and the timeline is unclear. The city promises to align with state law and “consider additional incentives.” HCD has rightly criticized commitments to “consider” positive changes in past plans because, of course, the city could consider making its density bonus ordinance better and then fail to actually do so.

It is also unclear what such additional incentives would be, although we would recommend allowing greater bonus density than the state within one kilometer (0.62 mile or about a 12 minute walk) of planned stops in the D Line Subway Extension, which is scheduled to reach Beverly Hills along Wilshire Boulevard during the planning period 17 .

B. Inclusionary zoning ordinance
Beverly Hills has an existing inclusionary zoning (IZ) ordinance. The ordinance requires that at least 10% of homes in certain multifamily developments be made affordable to very low income, low income or moderate income households
18 . One positive aspect of this requirement is that it is structured so that all IZ projects would likely also qualify for a state density bonus, which eases feasibility concerns. However, this program must also be analyzed as a potential constraint to housing production and the analysis provided is superficial. Substantial evidence that the IZ requirement is not a constraint on housing production could include an economic feasibility study prepared within the last decade for Beverly Hills’ housing market by a consultant with relevant expertise.

C. Local funding for affordable housing
Beverly Hills does fund some housing initiatives that sound promising, such as services for people experiencing homelessness and senior citizen case management. However, in these cases the funds used are partially from the federal government (CDBG) 19 . Beverly Hills does
collect IZ in lieu fees, but as discussed above, the IZ ordinance must be better analyzed as a potential development constraint. The city should enhance local funding for affordable housing and tenant support programs through taxes and fees that do not directly fall or only minimally fall on new housing production.

IV. Tenant Protections
Tenant protections in Beverly Hills are generally strong. The city has a rent stabilization ordinance and plans to create a program of proactive housing inspections by 2024 to root out code violations that could harm tenants
20 . However, without more concerted action to address
20 Beverly Hills 2/21/2023 Adopted Housing Element, redlined version, pages 470 & (PDF page 12). 19 Beverly Hills 2/21/2023 Adopted Housing Element, redlined version, pages 485 & (PDF page 27). 18 Beverly Hills 2/21/2023 Adopted Housing Element, redlined version, page B-15 (PDF page 115). 17 “Purple (D Line) Extension Transit Project.” Los Angeles County Metropolitan Transportation Authority 5 the housing affordability crisis, many tenants in Beverly Hills will continue to be cost burdened and vulnerable due to the high cost of housing.

V. Affirmatively Furthering Fair Housing
A. Inadequate analysis and weak commitments
Beverly Hill’s analysis of fair housing lacks maps that overlay the sites inventory parcels on other layers that would help illustrate de facto segregation problems. For example, the Neighborhood Segregation Map, shows few areas with a robust mixture of people of different races and many areas that are predominantly white
21 . However, putting this together mentally, it
is clear that the sites inventory relies heavily on parcels in the Mixed Use Overlay zone, which is concentrated immediately along major arterial streets such as Wilshire Boulevard. This strategy will not meaningfully desegregate the city. ADUs are the proposed strategy most likely to address patterns of segregation, but Beverly Hills should go further than ADUs, which are already required by state law. 77% of the city’s land area is zoned single-family residential 22 ,
effectively excluding lower-income households, who are disproportionately Black, Indigenous and other people of color, and rendering affordable housing development infeasible. Beverly Hills should expand multifamily zoning to at least some of these areas, to compensate for overly optimistic assumptions in the sites inventory and to open up new housing opportunities. As discussed above, at a bare minimum, the city must abolish its residential estate zoning with the extremely onerous one acre minimum lot size.

Conclusion
In closing, the HE before you should be sent back with a correction list and we wish to reflect on some of HCD’s prior comments on the previously adopted HE 23 . HCD points out that the sites
inventory must better justify expected development based on precedents for past projects and better justify the ADU forecast. The constraints analysis is incomplete, making it impossible to determine the adequacy of the proposed constraint removal programs. The AFFH analysis and programs are inadequate. The city must also ensure that it is clear on how to preserve affordability for units at risk of conversion to market rate. We thank HCD for these thoughtful comments and wish to add for your consideration our own insights listed above. For many people, Beverly Hills is a symbol of opulence and social exclusion. With thoughtful and courageous revisions to its housing element, it can become a symbol of inclusion and exemplary housing policy. Unfortunately, the adopted plan does not get us there.

We request the opportunity to meet with you and your colleagues to address the concerns raised in this letter. Thank you for your time and consideration. 23 Lee, Chelsea and McDougall, Paul (11/28/2022). “RE: Beverly Hills’ 6th Cycle (2021-2029) Adopted Housing Element.” HCD
22 Beverly Hills 2/21/2023 Adopted Housing Element, redlined version, page B-7 (PDF page 107). 21 Beverly Hills 2/21/2023 Adopted Housing Element, redlined version, page A-56 (PDF page 96). 6 Sincerely,
Leonora Camner Sonja Trauss
Leonora Camner
Executive Director
Abundant Housing LA
Sonja Trauss
Executive Director
YIMBY Law
Letter Recipients
Gustavo Velasquez, Director, HCD, [email protected] Megan Kirkeby, Deputy Director, Housing Policy Development, HCD, [email protected] Melinda Coy, Land Use and Planning Manager, HCD, [email protected] Tyrone Buckley, Assistant Deputy Director of Fair Housing, HCD, [email protected] Paul McDougall, Housing Policy Development Manager, HCD, [email protected] Chelsea Lee, HCD, [email protected]
HCD Housing Element Inbox, [email protected]
City Council Public Comments, Beverly Hills, [email protected] Mayor Lili Bosse, Beverly Hills, [email protected].

Vice Mayor Julian A. Gold M.D., Beverly Hills, [email protected].

Councilmember John Mirisch, Beverly Hills, [email protected].

Councilmember Lester Friedman, Beverly Hills, [email protected] Councilmember Sharona R. Nazarian PsyD, Beverly Hills, [email protected] City Manager Nancy Hunt-Coffey, Beverly Hills, [email protected] Director of Community Development, Timothea Tway, Beverly Hills, [email protected] 7 12100 WILSHIRE BOULEVARD, SUITE 1600 | LOS ANGELES, CALIFORNIA 90025 | www.AGD-Landuse.com
DALE J. GOLDSMITH

April 24, 2023

BY EMAIL
California Department of Housing
& Community Development
2020 West El Camino Avenue
Sacramento, CA 95833
[email protected]
Re: City of Beverly Hills 2021-2029 Housing Element Update To whom it may concern:

The City of Beverly Hills (“City”) originally approved its General Plan 2021-2029 Housing Element (“Housing Element”) in October, 2021 and submitted it to the Department of Housing and Community Development (“HCD”) for review. In a letter dated January 14, 2022, HCD found that the Housing Element did not meet all statutory requirements of State Housing Element Law.

The City approved a revised Housing Element in September 2022. In a letter dated November 28, 2022, HCD found that the revised Housing Element still did not meet all such statutory requirements. Among other things, HCD expressed concern that there was little to no analysis of the likelihood of the existing uses in the Mixed Use Overlay Zone being discontinued during the planning period.

On February 21, 2023, the City approved a second revised Housing Element. Like the prior versions, it relies on the redevelopment of currently developed sites in the City’s Mixed Use Overlay Zone, as well as new accessory dwelling units in single family zones, to meet the City’s Regional Housing Needs Allocation (“RHNA”) of 3,104 units.

We believe that HCD’s concerns as to whether the existing uses will actually be discontinued are justified. The Mixed Use Overlay Zone is limited to the established commercial corridors along the City’s major throughfares, and most of the sites within the overlay zone are developed with viable retail, restaurant, office, and medical office uses. As much of this zone is limited to three stories in height (the same height as permitted for commercial uses), there may not be sufficient incentive for property owners to demolish profitable commercial buildings and take on the significant entitlement, construction, and market risks inherent in redevelopment.

The situation is exacerbated by spiraling construction costs, rising interest rates, limited financing options, and a highly uncertain economic outlook.

California Department of Housing
& Community Development
April 24, 2023