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
March 5, 2024
Richard Grunow, Director
Community Development Department
City of Coronado
1825 Strand Way
Coronado, CA 92118
Dear Richard Grunow:
RE: City of Coronado’s 6th Cycle (2021-2029) Revised Draft Housing Element Thank you for submitting the City of Coronado’s (City) revised draft housing element received for review on January 17, 2024. Pursuant to Government Code section 65585, the California Department of Housing and Community Development (HCD) is reporting the results of its review.
The revised draft element addresses some of the findings from HCD’s prior reviews (May 12, 2021, November 8, 2021 and December 15, 2023); however, in many cases, the element was not revised to address HCD’s prior review. Additionally, in some cases, the element removed or modified revisions from prior versions and therefore no longer addresses the statutory findings from prior reviews. Revisions will be necessary to substantially comply with State Housing Element Law (Gov. Code, § 65580 et seq). The enclosed Appendix describes the revisions needed to substantially comply with State Housing Element Law.
In addition, pursuant to Assembly Bill 1398 (Chapter 358, Statutes of 2021), a jurisdiction that did not adopt a compliant housing element within one year from the statutory deadline cannot be found in compliance until rezones to make prior identified sites available or accommodate a shortfall of sites are completed pursuant to Government Code sections 65583, subdivision (c)(1)(A), and 65583.2, subdivision (c).
As this year has passed and necessary rezones are not complete (e.g., Program H-1.F (General Plan Update Program) and Program H-1.G (Development Standards)), the housing element will remain out of compliance until the City completes all the necessary rezones.
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 Attachment 10
Richard Grunow, Director
available and considering and incorporating comments where appropriate. Please be aware, the City must post any revisions to the element on the City’s website and 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 criterion. For example, the CalTrans Senate Bill (SB) 1 Sustainable Communities grant, the Affordable Housing and Sustainable Communities program, 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.
We are committed to assisting the City in addressing all statutory requirements of State Housing Element Law. Please note that under the stipulated judgment between the City and HCD, the City is required to adopt a substantially compliant housing element no later than April 16, 2024. HCD welcomes the opportunity to meet with the City and provide technical assistance on future submittals. If you have any questions or need additional technical assistance, please contact Sohab Mehmood, of our staff, at [email protected].
Sincerely,
Paul McDougall
Senior Program Manager
Enclosure
Attachment 10
City of Coronado’s 6th Cycle (2021-2029) Revised Draft Housing Element Page 1 March 5, 2024
APPENDIX
CITY OF CORONADO
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 https://www.hcd.ca.gov/planning-and-community-development/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/planning-and-community-development/housing-elements/buildingblocks 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).) Enforcement: The element was revised to describe the different local and state fair housing laws and included a high-level statement that the City complies with all these provisions (p. B-71). However, as found in HCD's prior review, the element must address specifically how the City complies with these laws. Please visit pages 29-30 of HCD Affirmatively Furthering Fair Housing(AFFH) guidance memo:
https://www.hcd.ca.gov/community-development/affh/docs/affh_document_final_4-27- 2021.pdf.
Racially Concentrated Areas of Affluence (RCAA): The element was revised to indicate that subsidies are important to addressing RCAA and building affordable housing (p. B-34).
However, as found in HCD’s prior reviews, the analysis must still address trends, conditions, coincidence with other fair housing factors (e.g., race, highest resource, overpayment), effectiveness or absence of past strategies (e.g., lack of publicly assisted housing and lack of multifamily zoning), local data and knowledge and other relevant factors. Based on the outcomes of a complete analysis, the element should add or modify programs to AFFH and, in particular, add housing mobility strategies to promote housing choices and affordability throughout the City.
2. Analyze any special housing needs such as elderly; persons with disabilities, including a developmental disability; large families; farmworkers; families with female heads of households; and families and persons in need of emergency shelter. (Gov. Code, § 65583, subd. (a)(7).)
Special Needs Households: The element was revised to include a listing of some general resources and proposed programs and policies to address special needs populations (pp. 2-32-34). The analysis also indicated that during the last planning Attachment 10
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period, no special needs units were constructed (p. 5-1), recognizing that the City's efforts to address special needs populations were largely ineffective for eight years. Due to the ineffectiveness of the programs and actions from the last planning period, the element must include a robust analysis identifying and evaluating gaps in resources and significant actions with specific commitments to addressing the needs of these populations.
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).)
Navy Sites: The element identified a portion of the regional housing need allocation (RHNA) to be accommodated on Navy-Owned sites, specifically 374 units, including 305 units for lower-income households. Previous iterations of the element indicated that these units will meet the US census definition of a unit; indicated there are no known barriers to development; that the Navy has acquired funding for these units, and that this project will be completed by the end of the planning period (p. 7-27). To address HCD’s prior reviews, the element was revised to indicate that construction is anticipated to begin in 2029, which differed from previous statements where the element had indicated that construction will be completed by 2028 (p. 7-31). As found in HCD’s prior reviews, the analysis should also discuss any remaining steps for development and a general schedule for development in the planning period. Based on a complete analysis, the element should add or modify programs, as appropriate.
Suitability of Nonvacant Sites: For your information and as noted in HCD’s prior reviews, the housing element relies upon nonvacant sites to accommodate more than 50 percent of the RHNA for lower-income households. The housing element must demonstrate existing uses are not an impediment to additional residential development and will likely discontinue in the planning period. (Gov. Code, § 65583.2, subd. (g)(2).) Absent findings (e.g., adoption resolution) based on substantial evidence, the existing uses will be presumed to impede additional residential development and will not be utilized toward demonstrating adequate sites to accommodate the RHNA.
Electronic Sites Inventory: Pursuant to Government Code section 65583.3, subdivision (b), upon adoption of the housing element, the City must submit an electronic version of the sites inventory with its adopted housing element to [email protected]. The City must utilize standards, forms, and definitions adopted by HCD.
While the City has submitted an electronic version of the sites inventory, HCD notified the City of several corrections needed to process and accept the City’s electronic sites inventory. The City must address any corrections to the sites inventory and resubmit.
The City can reach out to HCD at [email protected] for technical assistance.
Zoning for a Variety of Housing Types (Supportive and Transitional Housing): Previous versions of the element included the appropriate revisions and commitments to address the statutory requirements related to supportive and transitional housing, including byAttachment 10 City of Coronado’s 6th Cycle (2021-2029) Revised Draft Housing Element Page 3 March 5, 2024
right permanent supportive housing (without discretionary action) pursuant to AB 2162 (Statutes of 2018). Specifically, in prior reviews, HCD provided the City with sample language that replaced the statement “ensure alignment” with “review and amend to comply with….” The element was now revised in Program H-5.B (Supportive Housing and Low-Barrier Navigation Centers) to remove HCD’s recommended language and the City’s revised language no longer specifically commits to comply with statutory requirements. Specifically, the revised element continues to state, “ensure alignment.” Furthermore, the revised language now commits the City to “authorizing” supportive and transitional housing rather than “permitting” this use. Lastly, the revised Program indicates that the City will authorize transitional and supportive housing as “comparable uses.” These revisions do not address HCD’s prior reviews and the statutory requirements. The element must commit to permitting transitional and supportive housing as a residential use in all zones and only subject to those restrictions that apply to other residential dwellings of the same type in the same zone. Additionally, the element must commit to amending zoning and procedures to comply with AB 2162 (Statutes of 2018).
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 must analyze the impacts of land use controls on housing cost, supply (number of units), and ability to achieve maximum densities and identify and address constraints on development, as follows:
• Heights – The element was revised to state that the City's height requirements are not a constraint to development (p. 3-9). The element also stated that the City recognizes the typical height requirements should include one story for every 10 units per acre and each floor can be measured between 9-12 feet. However, the height requirements are a constraint to development, affordability, supply and achieving maximum densities. The element must include or modify programs to revise the City's height requirements and facilitate achieving maximum allowable densities.
For your information, generally, one story of height for every ten units per acre and 12-feet of height per story are acceptable benchmarks for evaluating heights.
The City’s height requirement particularly for the R-3 and R-4 zone differ from these benchmarks and can have impacts on housing choices, affordability, and ability to achieve maximum densities. For example, the R-4 zone permits 40 units per acre. This would result in a maximum height requirement of no less than four stories and 48 feet. The element must include a commitment to increase height requirements for several zones, including the R-3, R-4, and zones accommodating the City's rezone to accommodate the RHNA.
Attachment 10
City of Coronado’s 6th Cycle (2021-2029) Revised Draft Housing Element Page 4 March 5, 2024
• Parking – HCD’s prior reviews found that the City's parking requirements for multifamily housing projects is considered a constraint and the element must include or modify programs committing to reducing parking requirements for smaller bedroom types (e.g., one space for studio and one-bedroom units) for all multifamily developments irrespective of income levels. Prior versions of the element committed to reducing parking requirements for affordable housing projects. HCD's December 15, 2023 review found that parking should be reduced for multifamily regardless of income. The element was revised to now include Program H-5.M (Parking Standards Evaluation and Amendment) committing to evaluating and identifying strategies to reduce parking requirements. However, while this Program commits to evaluation, identification and exploring alternatives, it does not commit to reducing parking requirements. Further, this Program does not commit to anything beyond studying, evaluating, and exploring. As found in HCD's prior reviews, the element must include a program with specific commitment to reducing parking requirements for smaller bedroom types (e.g., one space for studio and one-bedroom units) for all multifamily developments regardless of income levels.
• Rezones – The City is rezoning sites to accommodate it's RHNA. HCD's prior review found that the element must include program(s) committing to establishing development standards that facilitate achieving maximum densities. The element was revised to include Program H-1.G (Establishment of Development Standards). This Program generally commits to establishing development standards that are similar to other jurisdictions, ensuring that these standards align with community values and are compatible with the community character.
However, as found in HCD's prior review, the Program should specifically commit to establishing development standards that facilitate maximum densities.
Design Review: HCD's prior reviews found that the element must analyze and address the City's design review process, namely the subjective approval findings. The element was revised to include Program H-5.L (Design Review) committing to removing findings related to "inappropriate, incompatible, bizarre, exotic". However, the analysis indicates additional subjective findings and criteria beyond the findings referenced in Program H5.L including but not limited to "harmonious, good, durable quality, etc.," The element must add or modify programs that specifically commit to promoting objectivity and certainty in the design review process.
Constraints on Housing for Persons with Disabilities (Reasonable Accommodation):
HCD's prior reviews found that the City considers impacts on surrounding uses as part of its decision-making criteria when granting a reasonable accommodation and that the element must include a commitment to removing these criterion. The element was revised to include Program H-5.K (Reasonable Accommodation Ordinance). This Program states that the City will still assess whether a reasonable accommodation request "poses a detriment to surrounding uses" (p. 8-37). As found in HCD's prior reviews, a reasonable accommodation should be a unique exception process from a conditional use permit, especially given its importance in addressing barriers to housing for persons with disabilities. The City should not be evaluating impacts on surrounding uses when reviewing a reasonable accommodation request. The Program must commit Attachment 10
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to remove all criteria related to evaluating reasonable accommodation requests for impacts on surrounding uses.
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, mortgage prepayment, or expiration of use restrictions. (Gov. Code, § 65583, subd. (a)(9) through 65583(a)(9)(D).).
HCD's prior reviews found that the analysis of at-risk units must 1) estimate and analyze the costs of replacement versus preserving these units 2) identify of public and private nonprofit corporations known to the City to have the legal and managerial capacity to acquire and manage at-risk units and 3) identify local, state, and federal funding programs. The element was revised to discuss available funding and qualified entities.
However, while the element generally described what could impact the costs for preservation versus replacement of these units (p.6-1), as found in HCD's prior reviews, the element must estimate the actual costs of preserving versus replacing the 55 units at-risk of converting to market rate.
B. Housing Programs
1. 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, 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 A3, 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. In addition, the element should be revised as follows:
Program H-4.D (AB 1486 City-Owned Land): The element identified City-Owned sites to accommodate a portion of the RHNA. The element was revised with various actions to facilitate development on City-Owned sites including outreach, requests for proposals (RFP), and exploring partnerships. However, while the element included some actions, several of these actions did not include a specific commitment or a schedule to facilitate these efforts. For example, the element indicated that it would explore partnerships and funding. However, the Program should specifically commit to establishing partnerships and pursuing funding with timelines. Additionally, the element must include a discrete timeline for the various other actions that were listed in this Program including the Attachment 10
City of Coronado’s 6th Cycle (2021-2029) Revised Draft Housing Element Page 6 March 5, 2024
issuance of RFPs, establishing streamlined reviews, and providing development incentives. Lastly, the element should include additional efforts to facilitate development on these sites such as commitment to facilitate entitlements and issue permits by a specific date consistent with the assumptions in the sites inventory.
Program H-1.E (Track Navy Housing Development): HCD’s prior reviews found that this Program must be revised to reflect any remaining steps and a schedule of actions for completing construction of the identified RHNA units on the Navy site. Additionally, previous versions of this program indicated that construction was expected to be complete by 2029 (the end of the planning period). The Program is now revised to indicate that construction is anticipated to begin on the last day of the planning period (p. 8-6). As found in HCD’s prior reviews, this Program should be revised to reflect any remaining steps and a schedule of actions for completing construction of the identified RHNA units on the Navy site.
2. 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 A4, 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 and address and remove or mitigate any identified constraints.
3. 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... (Gov. Code, § 65583, subd. (c)(5).)
As found in HCD’s prior reviews, the City is predominantly high and highest resource, higher income, and some neighborhoods are considered RCAA. As a result, the element must include a significant suite of programs to promote housing mobility or housing choices and affordability throughout the City. These programs should not be limited to the RHNA and, instead, target significant and meaningful change.
The element was revised with some additional actions, metrics, and geographic targeting; however, as found in HCD’s prior reviews, the element must include additional actions that promote housing choices and affordability throughout the City.
Additional examples include promoting more housing choices and affordability in other lower-density areas (e.g., missing middle housing types), identifying additional multifamily areas and additional religious institutional sites, and enhancing accessory dwelling units (ADU), junior accessory dwelling units (JADU) or additional conversion of existing space, and home sharing strategies.
Attachment 10