BACKGROUND:
The City adopted its updated General Plan on July 28, 2021. The Housing Element is a key component of the General Plan; however, per State mandate, that Element has its own separate update schedule and proc ess. On March 25, 2020, the City Cou ncil authorized the City Manager to execute a Professional Services Agreement with Terra Nova Planning and Research, Inc. (Terra Nova) to prepare the required 6 th Cycle Housing Element Update in accordance with State La w, and to prepare the associated environmental document.
The State of California Housing and Community Development Department (HCD) mandates every jurisdiction update its Housing Element for compliance with State law every eight years. Housing Elemen ts found to be “in complianc e” are el igible for most state housing grants and other state -funded programs. Housing Elements are updated to coincide with HCD’s revised Regional Housing Needs Allocation (RHNA). Cathedral City’s current Housing Ele ment was approved and certified in 20 14 in accordance with HCD’s 5 th Cycle RHNA (October 2013 –October 2021). Housing Elements for jurisdictions within the Southern California Association of Governments (SCAG) region are now mandated to be updated in accor dance with the 6 th Cycle RHNA (Octobe r 2021–October 2029).
The Housing Element was submitted to HCD for review on April 29, 2021. HCD provided comments on June 28, 2021. A second draft, addressing HCD’s comments, was submitted to HCD on October 25, 2 021. HCD provided additional comments on December 2 2, 20 21. A third draft, addressing HCD’s most recent comments, was submitted to HCD on January 7, 2022. Following adoption by th e City Co uncil, the updated Housing Element will be sent to HCD for certification.
Housing Elements are a means of increasing the overall supply and affordability of the housing stock by conserving and improving the condition of existing housing, removing regulatory barriers to housing production, and addressing special needs housing. The City must demonstrate through its Housing Element that it will use its land use authority, policies and programs, and streamlined developmen t approval process to provide opportunities for maintaining, improving, and increasing its housing stock within HCD’s guidelines. The City d oes not have t o invest in any of the housing or ensure that it will be built, but it is required to facilitate its construction and track the success of its policies, programs and processes.
The City satisfies its fair share of the statewide housing need, as established by HCD, through its RHNA process. HCD’s 6 th Cycle RHNA allocation for Southern California is
1.3 million housing units. SCAG determines the regional distribution of these units to each jurisdiction. The RHNA distribution for Cathedral Cit y is 2,549 uni ts. In comparison, the City’s RHNA for the 5th Cycle was 600 housing units and 3,329 units for the 4th Cycle.
The State’s focus on the current housing crisis has resulted in extensive RHNA allocations for the 6 th Cycle. Additionally, State directives res tricting housing credits, mandating accessory dwelling unit allowances, and requiring amendments to a ddress prior RHNA cycle policy shortcomings combine to challenge a jurisdiction’s ability to meet current RHNA requirements; however, the dra ft Housing Ele ment Update (Attachment 1, Exhibit A) has been prepared to meet those challenges.
As noted, establishing pol icy direction regarding housing development within the City does not directly result in the construction of units. Nonetheless, t he Housing Ele ment Update qualifies as a “project” under the California Environmental Quality Act (CEQA).
Planning Commission
The Housing Element Update was formally considered by the Planning Commission at a duly noticed public hearing during the April 6, 2021 regular meeting, where it was unanimously recommended the City Council approve the project.
DISCUSSION:
The City is in the process of complying with the State -mandated update schedule for Housing Elements. Terra Nova commenced preparation of the City’s Housing Element Update for the 6 th Cycle RHNA (2021 -2029) in March 2020. An evaluation of the prior 5th Cycle Housing Eleme nt programs determined what actions had been accomplished to meet State housing goals and policies since completion of th at last Housing Element update. In consultation with staff, this evaluation was documented and required future actions were identified to meet any shortcomings from the prior cycle. This is summarized in “Evaluation of the Prior Housing Element” and included as Attachment 1, Exhibit A, Appendix A.
The statistical data within the Housing Element was then updated primarily relating to Census and A merican Community Survey information. The Update includes an analysis of the demographic data, including the City’s population c hanges and existing housing stock; future housing needs in the City, particularly affordable housing; and housing available for special needs households, including seniors, disabled persons, large families, single-parent households and the homeless.
This information was then analyzed within the context of the City’s ability to accommodate the total number of housing units alloca ted to the City by SCAG through the RHNA process as follows:
Regional Housing Needs Allocation 2021-2029
Extremely Low Income 270
Very Low Income (<50% AMI) 270
Low Income (50-80% of AMI) 353
Moderate Income (81-120% of AMI) 457
Above Moderate Income (>120% of AMI) 1,199
Total Units 2,549
Also considered were changes in the requirem ents of State law s ince the City last updated its Housing Element. These changes in law include a wide range of housing - related issues, including AB 686 passed by the California Legislature in 2018 requiring all housing elements due on or after January 1, 2021, to contain an Assessment of Fair Housing (AFH) consistent with the core elements of the analysis required by the Federal Affirmatively Further Fair Housing (AFFH) Final Rule (2015). The draft Housing Element Update includes an AFFH that analyzes pa tterns o f se gregation and equal access to opportunity with the City, consistent with AFFH Final Rule. A full list of housing-related laws is provided in the Housing Element.
A revised list of policies and programs has been prepared to meet the requiremen ts of the 6th planning cycle; changes in the City’s population needs and its RHNA allocation; and changes in state housing law. New housing sites have been identified to meet the increased RHNA, including Assessor’s Parcel No. 680 -190-037, identified as Site No. 9 in Table 37 - Inventory of Available Vacant Land, will require a Change of Zone from R - 2 (10 dwelling units per acre) to R -3 (20 dwelling units per acre), and lands in the North City Specific Plan have been included to provide sufficient land to meet the RHNA.
Program 1.A.7 addresses the need to complete the rezoning of Site No. 9 immediately following adoption of the Housing Element for the 2021 -2029 planning period. All other sites are currently designated for the appropriate density to accomm odate th e Ci ty’s RHNA allocation.
Draft Document Review and Comment
A virtual community workshop was held via Zoom on January 12, 2021, to engage the community in the preparation of the Housing Element Update. A draft of the Element was posted on the Ci ty’s website along with the details of the workshop. Additionally, an email was sent directly to 42 housing representatives. The workshop was conducted by Terra Nova and attended by 27 individuals. Attachment 1, Appendix C includes a summary of the attendees and comments received at the workshop.
On April 29, 2021, the draft Housing Element was submitted to HCD for review. HCD issued a response letter on June 28, 2021, describing its findings pursuant to Government Code Section 65585(d), which included changes necessary to satisfy the requirements of State law. The draft Housing Element was revised to address those comments. The revised draft was then released fo r public review and comment from October 7 through October 21. It was posted on the City’s website and directly noticed to those who had previously participated in the public outreach process. One comment, summarized in Appendix C, was received expressin g concerns regarding housing values.
The revised draft of the Housing Element Update was se nt to HCD on October 25, 2021. A response from HCD was received on December 22, 2021. The third draft of the Housing Element Update, addressing these comments, was submitted to HCD on January 7, 2022.
ENVIRONMENTAL REVIEW:
An Initial Study (Attachment 2) was prepared in conformance with Section 15063 and other applicable sections of the CEQA Guidelines to determine if the Housing Element Update (“the project”), as proposed, may have a significant effect upon the environment.
Based on the findings containe d within the Initial Study, the Housing Element will have no direct impact on the environment. A Notice of Intent to adopt a Negative Declaration was prepared, noticed in Desert Sun new spaper, and distributed to the City’s CEQA distribution list on Novemb er 8, 2021, for a 2 0-day review period concluding on November 29, 2021.
Adoption of the Housing Element will not result in the development of housing. In the future, when housing projec ts are proposed, the City will review each of these projects to addres s environmen tal iss ues associated with the particular project. Because housing could occur throughout the City, the specific conditions at any one project site may differ significantly from another, and site -specific analysis is appropriate where projects are proposed.
FISCAL IMPACT:
On March 25, 2020, the City Council authorized the City Manager to execute a Professional Services Agreement with Terra Nova Planning and Research, Inc. (Terra Nova) to prepare the required 6 th Cycle Housing Element Update in accordance with State Law, and to prepare the associated environmental document at a cost of $65,895.
At that time, this agreement was being funded by the General Fund.
Subsequently, the City was awarded a $150, 000 Local Early Action Pl an (LEAP) grant from the State of California, Department of Housing and Community Development in the amount of $150,000 on December 13, 2020 for the H ousing Element update to the General Plan . This agreem ent with Terra Nova along with staff costs a nd any other associated costs are considered eligible (reimbursable) costs.