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2022-08-08_ATT4_ 07-26-2022 HCD Comment Letter.pdf

City Council Meeting Agenda
August 8, 2022

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2022-08-08_ATT4_ 07-26-2022 HCD Comment Letter.pdf
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August 8, 2022
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Text extracted from the city's file for reading and search. Open the original on culver-city.legistar1.com. That file is the official record.

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 26, 2022 ******CORRECTED COPY*******

John Nachbar, City Manager
City of Culver City
9770 Culver Blvd.

Culver City, CA 90232

RE: City of Culver City’s (City) 6
th Cycle (2021-2029) Adopted Housing Element

Dear John Nachbar:

Thank you for submitting the City of Culver City’s (City) housing element adopted on January 24, 2022 and received for review on February 22, 2022. 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 several stakeholders and members of the community (listed in Appendix B), pursuant to Government Code section 65585, subdivision (c).

The adopted housing element addresses many statutory requirements described in HCD’s November 8, 2021 review; however, additional revisions are necessary to fully comply with State Housing Element Law (Article 10.6 of the Gov. Code). See enclosed Appendix.

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. Additionally, pursuant to Government Code section 65585, subdivision (b) (AB 215, Statutes of 2021), any subsequent draft revision, the local government must post the draft revisions on its website and email a link to all individuals and organizations that have previous requested notices related to local governments housing element at least seven days before resubmitting to HCD.

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

John Nachbar, City Manager

Page 2 ends

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).

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 in addressing all statutory requirements of State Housing Element Law. If you have any questions or need additional technical assistance, please contact Shawn Danino, of our staff, at [email protected] .

Sincerely,

Paul McDougall
Senior Program Manager

Enclosure

City of Culver City 6th Cycle Adopted Housing Element Page 1 July 26, 2022 (Corrected Copy)

APPENDIX A

CITY OF CULVER CITY

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 furthering 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).)

Concentrated Areas of Affluence: HCD’s prior review found the element should analyze higher income areas (greater than $125,000) relative to other block groups in the City and relative to the region, including addressing identified sites by income group in these areas and whether sites affirmatively further fair housing (AFFH). In response, the element includes minimal information; reporting that some areas have higher incomes than others.

However, the element must evaluate these differences. For example, the element should discuss any trends related to these differences and areas, how these areas relate to other components of the assessment of fair housing (e.g., concentrations of lower and moderate-income households, overpayment, displacement, etc.), other relevant factors that might have led to differences and any local data and knowledge that might explain differences in quality of life (e.g., infrastructure, parks, community amenities). Finally, the element should evaluate the City as a whole compared to the region. With a complete analysis, the element should re-assess contributing factors to formulate appropriate goals and actions with metrics and milestones.

Local Data and Knowledge: As noted in the prior review, the element should consider other local data and knowledge to complete the AFFH analysis. Examples include input from neighborhoods such as the identified Racial/Ethnic Concentrated Areas of Poverty (R/E CAP), knowledge from local planners and city administrators and city records and reports. This data and knowledge should supplement the data to complete an analysis for all the components of an assessment of fair housing (e.g., segregation and integration, disparities in access to opportunity, disproportionate housing needs).

Contributing Factors to Fair Housing Issues: Based on the outcomes of a complete analysis, the element should re-assess and prioritize contributing factors to fair housing issues.

City of Culver City 6th Cycle Adopted Housing Element Page 2 July 26, 2022 (Corrected Copy)

Goals, Actions, Metrics, and Milestones: The element must be revised to add or modify goals and actions based on the outcomes of a complete analysis. Goals and actions must specifically respond to the analysis and to the identified and prioritized contributing factors to fair housing issues and must be significant and meaningful enough to overcome identified patterns and trends. Actions must have specific commitment, metrics, and milestones as appropriate and must address housing mobility enhancement, new housing choices and affordability in high opportunity areas, place-based strategies for community preservation and revitalization and displacement protection.

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).)

Progress in Meeting the Regional Housing Need Allocation (RHNA): The element was revised to demonstrate the affordability of approved and pending projects. However, with respect to the availability of these projects in the planning period, the element simply concludes all projects are expected to be permitted in the eight-year planning period.

Instead, the element should provide some supporting information for this conclusion, particularly for the Culver City project given its significant role in accommodating the RHNA. For example, the element could discuss consistency with the general plan and zoning; all necessary approvals and likely completion dates; anticipated construction schedule; and could include a program to pursue alternatives (e.g., rezoning additional sites) if the project does not move forward as planned.

Realistic Capacity: While the element now includes supporting information for assumptions related to calculating residential capacity, it must still account for the likelihood of 100 percent nonresidential uses in the calculation of residential capacity.

Please see HCD’s prior review for additional information.

Suitability of Nonvacant Sites: The element includes some additional information related to market conditions. However, the element must still explain how trends support factors utilized to demonstrate the potential for additional development and evaluate the extent existing uses impeded additional development and demonstrate the uses will likely discontinue in the planning period. For example, the element must analyze any existing leases or other contracts that would perpetuate the existing use or prevent redevelopment of the site for additional residential development during the planning period. Please see HCD’s prior review for additional information.

In addition, for your information, the element relies on nonvacant sites to accommodate 50 percent or more of the housing needs for lower-income households, which 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. While the resolution of adoption includes the appropriate findings, any changes to the analysis should be reflected in future re-adoption of the element.

City of Culver City 6th Cycle Adopted Housing Element Page 3 July 26, 2022 (Corrected Copy)

Electronic Site Inventory: As noted in the prior review, 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 and submit an electronic version of the sites inventory. While the City has submitted an electronic version of the sites inventory, if changes occur, any future re-adopted versions of the element must also submit the electronic version of the sites inventory.

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).)

Fees and Exactions: The element included some general information, concluded fees are not a constraint because nearby jurisdictions have similar fees and then includes actions with indirect and unclear commitment and beneficial impact (e.g., “consider”, “may”).

However, the element must include analysis beyond a comparison of other jurisdiction who also might significantly constrain development. As noted in the prior review, the analysis should specifically evaluate planning fees, why these fees are so high and consider more direct and clear mitigation strategies.

Processing and Permit Procedures: The element indicates some findings of approval may be constraints and includes a program to establish objective standards. However, this program action (Measure 4) should specifically commit to also revise findings of approval to reflect how objective standards will be implemented to promote approval certainty.

Housing for Persons with Disabilities:

• Reasonable Accommodation: The element now lists approval findings for reasonable accommodations, but it should also evaluate those findings. For example, the procedure essentially includes a compatibility or use permit finding which should be removed.
• Group Homes for Seven or More Persons: HCD’s prior review found group homes appear to be subject to a use permit and five-acre minimum lot size requirement.

The element now includes programs to “address” large care facilities as similar uses and “evaluate” the minimum lot size requirement. However, these actions should specifically commit to revise or replace procedures with objectivity and approval certainty and significantly reduce (same as other residential uses) or remove the minimum lot size requirement.

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

City of Culver City 6th Cycle Adopted Housing Element Page 4 July 26, 2022 (Corrected Copy)

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).)

Several revisions were made to Programs containing unclear commitments (e.g., “Continue to facilitate”; “Annually work with”; “Explore”; “Consider”; “Encourage”; etc.) and should be amended to include more specific and measurable actions. To have a beneficial impact in the planning period and address the goals of the housing element, programs must be revised with discrete timelines and specific and clear commitment to outcomes. Programs and Measures to be revised with specific and clear commitment to outcomes include:

• Measure 1F (Affordable Housing Development Assistance) was revised to “consider” exempting multifamily housing from the Mobility Improvement Fee (p.85). However, as described in the previous letter, discrete timelines and specific, and clear commitments to outcomes are necessary. To have a beneficial impact, the word 'consider' should be removed or the phrasing revised in a manner that will result in an outcome. Additionally, the schedule for the program was revised to describe coordination between internal departments. However, as mentioned in the previous letter, the measure should be revised to include discrete timelines such as how often the housing authority will coordinate with other departments and how often the City will proactively reach out to developers to identify development opportunities.
• Measure 6E (Homebuyer Assistance) should be revised with actions beyond “considering allocating a portion of the inclusionary and linkage fee” with a commitment to an outcome 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 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 A2, the element does not include a complete site analysis; therefore, the adequacy of sites and zoning was 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.

City of Culver City 6th Cycle Adopted Housing Element Page 5 July 26, 2022 (Corrected Copy)

In addition, Measure 4A (Adequate Sites for RHNA) still must be revised to meet all requirements pursuant to Government Code section 65583.2, subdivisions (h) and (i). For example, at least 50 percent of the lower-income need must be accommodated on sites designated for residential use only or meet other specified standards related to mixed-use development. In addition, the Measure should identify a minimum acreage to be rezoned in the planning period and commit to establish development standards that encourage achieving maximum densities and do not constrain development.

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 Finding A3, 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.

4. 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 noted in Finding A1, the element must include a complete assessment of fair housing.

Based on the outcomes of that analysis, the element must add or modify programs.

C. Public Participation

Local governments shall make a diligent effort to achieve public participation of all economic segments of the community in the development of the Housing Element, and the element shall describe this effort. (Gov. Code, § 65583, subd. (c)(9).)

The City made efforts to reach the public, including hosting events during the weekend.

Nonetheless, several comments questioned the suitability of nonvacant sites and the likelihood of redevelopment during the planning period, and these issues must be addressed.

Based on comments received, the City should also address the voter-led height maximum along commercial corridors as well as some of the sites cited as unlikely for redevelopment, including the Del Taco/ Petrelli Steakhouse site, and the Culver Center Regency Project.

Additionally, the City may consider establishing a firm commitment date for the new General Plan land use map as well as a date for reducing parking requirements or setting parking maximums. The City may also consider Accessory Commercial Units (ACUs) as a way to increase access to opportunity and reduce Vehicle Miles Traveled (VMT).

Finally, several comments were received expressing concerns with the Incremental Infill Program and these comments should be appropriately addressed. For example, the City could clarify its role in facilitating and complying with Senate Bill 9, effective January 1, 2022, which allows for lot splits and duplexes in single unit neighborhoods.

City of Culver City 6th Cycle Adopted Housing Element Page 1 July 26, 2022 (Corrected Copy)

APPENDIX B

CITY OF CULVER CITY

The following list comprises the names of individuals and entities who submitted public comments to HCD for the Culver City 6
th Cycle Draft Housing.

Amy Agzarian
Anita Agzarian
Mark Akita
Erik Akutagawa
Albert Albatros
Debbie Andorka
Carol Ball
Hayley Babcock
Katie Baral
David J. Barboza, AICP
Charles Barlow
Annette Bayley
Tim Bayley
Carolyn Bosil
Jeff Bossin
Sharon Pelton Bowman
Cecilia Britton
Gary Brown
Matt Brown
Greg Cahill
Greg Campbell
Constance Carlson
Michael Castro

Linda Catanzano
Ron Cavagrotti
Chak Chie
Marla Coburn
Pamela Collingwood
Susan Corzel
Common Sense Culver
City
John Dagenais
Joan Davidson
DiAnn Davis
DiAnn Davis
Patricia Davis
Scott Davis
Suzanne De Benedittis
Ofelia De Los Santos
Anthony Dedousis
Pamela Dennis
John Derevlany
Tim deZarn
Concezio Di Gregorio
Carol Diamond
George Dougherty
Anne Easley

Rosemary Edmeads
Goran Erickson
Meshagali Farid
Michael Fate
Doug Felts
Alex Fisch
Emily Fisher
Evan Fisher
Eric Frans
Esmeralda Fucci
Bill & Carol Gallagher
Paul Gansky
Janet Gegan
Jerry Green
Neil Greenburg
Iain M. Gulin
Safia Gutierrez
R. Joey Handley
Roslyn Henderson
Ken Hoyt
Mie & Wayne Jones
Stephen Jones
David Kellogg
Suzi Joi Kiefer

City of Culver City 6th Cycle Adopted Housing Element Page 2 July 26, 2022 (Corrected Copy)

Marla Koosed
Kevin Kunisaki
Debbie Lee
Annie Lefton
Philip Lelyveld
Rhonda Lilly
Amy Loftus
Robert Lurie
Ronna Magy
Fedor Malikov
James Meehan
Megan Meloth
Diane Miller
Scott Miyamoto
Tindara Molica
Steve Mullen
Ken Niles
Cecil Nielsen
Brian Owns
Dennis B. Page
Amy Palmer
Espie Perdomo
Judith Penchansky
Oliver Penchansky
Helen Pinkston
Annie L. Pinkser-Brown
Vicki Daly Redholtz
Judy Reichel
Kim Richards
Anthony Rizzo
Victoria Rosenfield
Joan Salvaterra
Wendy Salz
Bryan Sanders
R. Sergant
Karim Shahabi
Claire Sheftel
Michael Sheldon
Steve Siegel
Patrick & Cecilia Stadler
Jeannine Wisnosky Stehlin
Diane Steinberg
Peter Stern
Coco Stewart
Peter Stewart
David Stout
Brent Taravella
Vikram Thakur
Mark Trux
Ross Urquhart
Daniel Valdez
Martha Valdez
Albert Vera
Darcy Vernier
Jill Vesci
Jamie Wallace
Patricia Ward
Steve Weber
Linda Wheelehorn
Bryon Wilson
Janet Wilson
Edward M. Wolkowitz
Jo Ellen Young
David Zandel
Lily Zandel
Linda Zapel
Adelaide Zimmerman

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