Agenda #: 4.1
Meeting Date: August 11, 2022
TO: Honorable Mayor and Members of the City Council
FROM: Daniel Fox, City Manager
TITLE: ADOPTION OF THE SIXTH CYCLE 2021-2029 HOUSING ELEMENT UPDATE (GPA NO. PL2021-04).
STRATEGIC
GOAL: Open, Engaged & Responsive Government
RECOMMENDATION:
A. Receive presentation;
B. Open public hearing to receive testimony, close public hearing; C. Determine that the attached EIR Addendum demonstrates that adoption of the Sixth Cycle 2021-2029 Housing Element Update would not result in any significant environmental impacts that were not previously evaluated in the General Plan EIR, and therefore, no subsequent environmental document is required; and
D. Adopt Resolution No. 2022-44 adopting the Sixth Cycle 2021-2029 Housing Element Update (GPA No. 2021-04).
FINANCIAL IMPACT:
The City’s administrative cost and consultant fees for the Housing Element update are being reimbursed through State grant funds.
BACKGROUND:
State law establishes requirements for cities to adopt and periodically update their General Plans. One of the mandatory General Plan elements is the Housing Element, and State Housing Element requirements are far more extensive than for other General Plan elements. Unlike many other General Plan elements, Housing Elements must be updated on a schedule established by State law. For cities in the Southern California Association of Governments (“SCAG”) region, the 6th cycle Housing Element update
covers the 2021-2029 period.
One of the most important differences between Housing Elements and other General Plan elements is the extent of State oversight. The State Legislature has delegated authority to the California Department of Housing and Community Development (“HCD”) to review Housing Elements and issue opinions regarding their compliance with State law. When HCD issues an opinion that a Housing Element is in substantial compliance with State law it is referred to as “certification” of the Housing Element. Certification is important for maximizing city eligibility for State grants, and cities that do not obtain certification may be subject to litigation, fines, and loss of local control over land use decisions.
The State Legislature has declared that a housing crisis exists in California, and local government regulations and procedures are seen as a major cause of high housing cost and insufficient housing supply. Obtaining State certification in this cycle has been far more challenging than in previous Housing Element cycles. Of the 197 jurisdictions in the SCAG region, none obtained certification by the October 15, 2021 statutory due date and only 19 had received State certification at the time this report was prepared.
Three main reasons have been identified as to why so few jurisdictions have obtained Housing Element certification: 1) Many new housing laws and requirements adopted by the State Legislature in the past few years to address the “housing crisis,” which the State believes has been caused in large part by overly restrictive local housing regulations; 2) RHNA allocations that in most cities are far higher than the previous cycle, resulting in a mandate for cities to adopt major land use policy changes to allow higher housing densities; and 3) far more detailed scrutiny of Housing Elements by HCD coupled with vague requirements for analysis without clear guidance on what specifically is required to comply with the law.
DIAMOND BAR HOUSING ELEMENT STATUS:
On November 2, 2021, the City Council adopted the Housing Element, which was then submitted to HCD for review. On February 2, 2022, HCD issued a letter (Attachment 6) stating that while the adopted element addresses some statutory requirements, revisions will be necessary to comply with State Housing Element Law. Therefore, Diamond Bar’s Housing Element is currently out of compliance with State law (as are more than 90% of jurisdictions in the SCAG region).
HCD COMMENTS AND PROPOSED RESPONSES:
Attachment 2 provides a summary of HCD comments and proposed Housing Element revisions to address those comments. Most of HCD’s comments require additional data or clarification, while a few comments have been addressed by substantive revisions to some of the programs in Section 9.5 (Housing Action Plan). Proposed Housing Element revisions involving changes to current City policy are outlined below.
Program H-8. Land Use Element and Development Regulations This program includes a commitment to amend development regulations to ensure the availability of adequate sites to accommodate the RHNA as required by State law.
Appendix B provides a parcel-specific inventory of sites where additional housing development is expected – primarily in the Town Center, Neighborhood Mixed Use, and Transit-Oriented Mixed Use focus areas. The 2019 General Plan established broad standards for future mixed-use development in these areas; however, development regulations have not yet been updated to reflect the new General Plan policy for the focus areas. Program H-8 describes proposed zoning amendments, such as the new Town Center Specific Plan, that will ensure consistency between the General Plan and Development Code in these areas. The General Plan identifies maximum residential densities of 30 units/acre for the Neighborhood Mixed Use and Transit-Oriented Mixed Use focus areas and a maximum density of 20 units/acre in the Town Center. To comply with State RHNA requirements, the Housing Element has been revised to reflect an allowable density of 30 units/acre in all of the focus areas, including the Town Center. Adoption of the Housing Element would not change any development regulations. Detailed development standards will be established as part of new specific plans for the focus areas.
Program H-11. Housing for Persons with Special Needs
This program includes a commitment to update City regulations for housing for persons with special needs to comply with recent changes to State law. In its review letters, HCD stated that the conditional use permit requirement for residential care facilities serving 7 or more persons is a potential barrier to persons with disabilities. To address this comment, Program 11 has been revised to include a Development Code amendment to replace or modify the CUP requirement to provide greater objectivity and development certainty for residential care facilities serving 7 or more persons.
Program H-13. Efficient Project Processing
While the intent of the City’s development review process is to ensure that new projects comply with all policies and regulations, HCD has noted that the time required for project review has the effect of adding to the overall cost of housing. For some housing projects, cities are limited to ministerial (“by-right”) permit review based on objective standards in order to minimize processing time. To address HCD concerns, Program H13 has been revised to commit to improvements to development review procedures as part of the comprehensive Development Code update, such as through the use of objective standards and/or administrative review, in order to reduce processing time and increase development certainty for housing development projects, particularly those that include units affordable to low- and moderate-income households.
Program H-14. Affirmatively Furthering Fair Housing
Affirmatively furthering fair housing (“AFFH”) is a new requirement for the 6th Housing Element cycle, and extensive additional analysis of fair housing issues is provided in Appendix D. To address HCD comments, Program H-14 has been expanded to include the following additional fair housing objectives:
• Continue directing fair housing inquiries to the Housing Rights Center; • Continue to support the provision of housing for persons with disabilities; • Post information regarding fair housing and facilitate a presentation every two years about services available through the County Community Development Authority (LACDA), Housing Rights Center and the City;
• In cooperation with the Housing Rights Center, contact low-income apartment complexes to provide education and materials about the Section 8 program including multi-lingual materials; and
• Publish links to fair housing information on the City website and via social media.
Program H-15. Reasonable Accommodation for Persons with Disabilities State law requires cities to allow reasonable modifications to planning and building regulations when necessary to accommodate the needs of persons with disabilities. The City has adopted procedures for reviewing and approving such requests (Municipal Code §22.02.060). In its review, HCD stated that some of the City’s criteria for approving a reasonable accommodation are subjective and could act as a constraint to persons with disabilities. To address this comment, Program H-15 includes an amendment to the criteria for approval of requests for reasonable accommodations to provide greater objectivity and certainty.
It is staff’s opinion that with the proposed revisions, the Housing Element would substantially comply with the requirements of State housing law.
ENVIRONMENTAL REVIEW:
On December 17, 2019, the Diamond Bar City Council certified Final EIR No. SCH 2018051066 for the Diamond Bar 2040 General Plan. The City is now required to adopt an updated Housing Element for the 2021-2029 planning period. CEQA Guidelines Section 15164(a) states: “The lead agency or responsible agency shall prepare an addendum to a previously certified EIR if some changes or additions are necessary but none of the conditions described in Section 15162 calling for preparation of a subsequent EIR have occurred.”
Pursuant to CEQA Guidelines Section 15164, the City has prepared an Addendum to the General Plan EIR (Attachment 7). The EIR Addendum demonstrates that the 2021- 2029 Housing Element update would not result in any significant environmental impacts that were not previously evaluated in the General Plan EIR; therefore, no subsequent environmental document is required.
The Town Center Specific Plan, which is currently under preparation, will include subsequent CEQA analysis of potential environmental impacts that may occur as a result of changes to land use regulations.
PUBLIC PARTICIPATION:
Public participation is a required component of the Housing Element update process, and residents and other interested stakeholders were provided numerous opportunities to offer comments and recommendations since the project was begun. Early in the update process a Housing Element web page was created on the City website (www.diamondbarca.gov/963/Housing-Element-Update) and a Housing Element Frequently Asked Questions was prepared and posted on the City’s website. Public notices, agendas and materials for all Housing Element meetings were posted on the website and at City Hall in advance of each meeting and also sent directly to housing advocates and organizations representing the interests of lower-income persons and special needs groups. Notices of public hearings were also published in the local newspaper. Housing Element Appendix C provides additional information regarding the public review process.
PLANNING COMMISSION REVIEW:
On July 27, 2022, the Planning Commission conducted a public hearing to review the revised Housing Element. Public comments submitted at the Planning Commission hearing included Diamond Bar resident Mr. Paul Deibel who expressed his support for City policies to encourage affordable housing so that young families can remain in Diamond Bar. He also expressed support for higher densities in the Town Center and affordability requirements on new housing development.
At the conclusion of the hearing, the Commission adopted a Resolution (Attachment 5) by unanimous vote recommending City Council approval of the revised Housing Element.
NEXT STEPS:
If adopted by the City Council, the revised Housing Element must be submitted to HCD for 60-day review. The programs described in Housing Element Section 9.5 will be implemented over the next several years according to the timeframes described in each program. Required amendments to other elements of the General Plan or the Development Code as well as new specific plans will include their own public review processes, including public hearings by the Planning Commission and City Council. No specific development projects or changes to land use regulations would be approved as part of this Housing Element amendment.
LEGAL REVIEW:
The City Attorney has reviewed and approved the Resolution as to form.
PREPARED BY:
REVIEWED BY:
Attachments:
1. 4.1.a Resolution No. 2022-44; Housing Element
2. 4.1.b Exhibit A: Summary of HCD Comments and Proposed Responses
3. 4.1.c Exhibit B: Revised Draft 2021-2029 Housing Element
4. 4.1.d Revised Draft 2021-2029 Housing Element (tracked changes)
5. 4.1.e Planning Commission Resolution No. 2022-12
6. 4.1.f HCD Review Letter Dated February 2, 2022
7. 4.1.g EIR Addendum