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
February 2, 2022
Greg Gubman, Director
Community Development Department
City of Diamond Bar
21810 Copley Drive
Diamond Bar, CA 91765
Dear Greg Gubman:
RE: Review of Diamond Bar’s 6th Cycle (2021-2029) Adopted Housing Element Thank you for submitting the City of Diamond Bar’s (City) housing element adopted on November 2, 2021 and received for review on November 4, 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 element addresses some statutory requirements described in HCD’s June 3, 2021 review; 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.
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 this statutory deadline, 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).
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 Greg Gubman, Director
represent lower-income and special needs households, by making information regularly available and considering and incorporating comments where appropriate.
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.
We are committed to assist the City in addressing all statutory requirements of State Housing Element Law. If you have any questions or need additional technical assistance, please contact me at [email protected].
Sincerely,
Senior Program Manager
Enclosure
Paul McDougall
HCD’s Review of Diamond Bar’s 6th Cycle Adopted Housing Element Page 1 February 2, 2022
APPENDIX
CITY OF DIAMOND BAR
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).)
While the element includes some brief discussion of program objectives and in some cases, whether a program was successful, as noted in HCD’s prior review, it still must discuss outcomes or actual results and evaluate the effectiveness of program to evaluate appropriateness of programs in the current planning period. Please see HCD’s prior review for additional information.
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 now includes some brief and general discussion of public comments, poverty and introductions of some of the components of an assessment of fair housing (e.g., segregation and integration and disparities in access to opportunity). However, the element generally was not revised to address this requirement. Please see HCD’s prior review and HCD’s Guidance Memo and Data Viewer at
https://www.hcd.ca.gov/community-development/affh/index.shtml. In addition, HCD will send examples under separate cover.
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).)
HCD’s Review of Diamond Bar’s 6th Cycle Adopted Housing Element Page 2 February 2, 2022
The element now lists some programs that could assist in addressing the housing needs of extremely low-income (ELI) households. However, the element generally was not revised with an analysis of the housing needs of ELI households. This is particularly important given the unique and disproportionate needs of ELI households. For example, the element should analyze tenure, cost burden and other household characteristics and consider trends and available resources to better understand the magnitude of the housing need and formulate appropriate policies and programs.
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).)
Sites Inventory: While the element now lists sites by floor area ratio, it should consider additional information to facilitate an analysis of the potential for additional development.
For example, the element could list the age of the structure, improvement to land ratio and any indicators of property turnover such as the use is vacant, structural conditions, lack of improvements or has recently changed use and any expressed interest in additional residential development.
In addition, 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.
To date, HCD has not received an electronic version of the sites inventory in the adopted forms. Any future re-adopted versions of the element must submit the electronic version of the sites inventory.
Suitability of Nonvacant Sites: The element now includes some information on floor area ratios (FAR) and concludes the potential increase in development creates an incentive for redevelopment. However, the element should evaluate the differences between existing and allowable FAR, including what threshold was utilized and support these assumptions based on market conditions, development trends and recent experience in additional higher density residential development. The element should also include additional factors and analysis to demonstrate existing uses do not impede additional development. For example, for each of the future growth areas (e.g., Town Center Mixed Use, Neighborhood Mixed Use and Transit Oriented Mixed use), the element could discuss existing uses based on additional factors that indicate potential turnover of uses as described above.
In addition, as noted in the prior review, the element appears to rely on nonvacant sites to accommodate 50 percent or more of the housing needs for lower-income households, this 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 City’s adopted resolution notes substantial evidence, the element lacks substantial evidence and, with any future re-adoption of the housing element, the resolution should explicitly describe the substantial evidence to draw a nexus between HCD’s Review of Diamond Bar’s 6th Cycle Adopted Housing Element Page 3 February 2, 2022
the resolution and analysis in the housing element. HCD will send examples under separate cover.
Water and Sewer Priority: As noted in the prior review, local governments are required to immediately deliver the housing element to water and sewer service providers and should coordinate with providers to assure priority is granted to developments with units affordable to lower income households. The element should describe compliance with these requirements or add or modify programs, if necessary.
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)).
Fees and Exactions: The element generally was not revised to address this requirement. Please see HCD’s prior review.
Local Processing and Permit Procedures: The element includes some brief information related to the timing and density of development. However, the element generally was not revised to address this requirement. Please see HCD’s prior review.
Housing for Persons with Disabilities: While the element now lists findings and decisionmaking criteria for the reasonable accommodation procedures, it must still analyze these findings and criteria for any constraints on housing for persons with disabilities.
For example, several criteria appear to be constraints such as criteria related to altering the character of the neighborhood. The element should specifically evaluate these findings and constraints and add or modify programs to address constraints.
In addition, the element generally was not revised to address barriers on residential care facilities. Pleas see HCD’s prior review for additional information.
5. An analysis of potential and actual nongovernmental constraints upon the maintenance, improvement, or development of housing for all income levels, including… …requests to develop housing at densities below those anticipated in the analysis required by subdivision (c) of Government Code section 65583.2... (Gov. Code, § 65583, subd. (a)(6)).
Requests for Lower Density and Approval to Building Permit Times: The element now generally states times between project approval and building permits vary but should include some discussion and analysis of the actual length of time.
C. Housing Programs
HCD’s Review of Diamond Bar’s 6th Cycle Adopted Housing Element Page 4 February 2, 2022
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 the Finding B3, the element does not include a complete sites inventory or analysis; as a result, the adequacy of sites and zoning has not been established. Based on the results of a complete sites inventory and analysis, programs may need to be added, or revised, to address a shortfall of sites and zoning for a variety of housing types.
In addition, while Program H-8 was revised to address various requirements pursuant to Government Code sections 65583.2, subdivisions (h) and (i), it must still commit to accommodate 100 percent of the shortfall of sites necessary to accommodate the remaining housing need, including for lower-income households. Specifically, the Program should include specific commitment to the shortfall of sites, minimum acreages to be rezoned, allowable densities and anticipated development standards to encourage maximum allowable densities.
2. 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).) Extremely Low-income (ELI) Households: The element includes Program H-7 (Senior and Workforce Housing Development) to assist in the development of housing, including extremely low-income households. However, the Program should include specific commitment to proactively reach out to developers of affordable housing with discrete timelines (e.g., annually).
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 B4 and B5, the element requires a complete analysis of potential governmental and nongovernmental 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.
HCD’s Review of Diamond Bar’s 6th Cycle Adopted Housing Element Page 5 February 2, 2022
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 B1, the element must include a complete analysis of affirmatively furthering fair housing. Based on the outcome of that analysis, the element must add or modify programs.
D. 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)(8).) The element now describes the City developed a website and provides reasonable accommodation for participation in meetings. However, the element must still demonstrate diligent efforts were made to involve all economic segments of the community in the development of the housing element. Moving forward, the City should employ additional methods for public outreach, particularly to include lower-income and special needs households and neighborhoods with higher concentrations of lower-income households.
For example, the City could conduct targeted stakeholder interviews or establish a committee representative of lower-income households in future public outreach efforts. In addition, while the element includes a summary of comments and responses, comments appear to be minimal and how the element was revised is not apparent. Future versions should continue to summarize comments and revise the element as appropriate in response to comments.