Agenda #: 5.4
Meeting Date: March 19, 2024
TO: Honorable Mayor and Members of the City Council
FROM: Daniel Fox, City Manager
TITLE: 2023 HOUSING ELEMENT ANNUAL PROGRESS REPORT.
STRATEGIC
GOAL: Open, Engaged & Responsive Government
RECOMMENDATION:
Approve the report for filing with the State Department of Housing and Community Development (HCD) and the Governor's Office of Planning and Research (OPR).
FINANCIAL IMPACT:
None.
BACKGROUND:
Government Code Section 65588 requires that each local government review its Housing Element as frequently as appropriate to evaluate all of the following:
1) The appropriateness of the housing goals, objectives, and policies in contributing to the attainment of the state housing goal;
2) The effectiveness of the Housing Element in attainment of the community’s housing goals and objectives;
3) The progress of the city, county, or city and county in implementation of the Housing Element; and
4) The effectiveness of the Housing Element goals, policies, and related actions to meet the community's needs.
The City’s 6th Cycle (2021-2029) Housing Element was adopted by the City Council on August 11, 2022. The California Department of Housing and Community Development (HCD) reviewed the Housing Element and found it to be in full compliance with State Housing Element Law (Article 10.6 of the Gov. Code) in a letter dated October 5, 2022.
With the adoption and certification of the City’s Housing Element, the City has initiated
updates to the City’s Development Code to implement the goals, policies, and programs in the Housing Element.
Regional Housing Needs Assessment
Each California city is required to plan for new housing to accommodate a share of regional needs. The Regional Housing Needs Assessment (“RHNA”) is the process established by State law in which housing needs are determined. The Southern California Association of Governments (SCAG) determines the housing growth needs by income category for cities within its jurisdiction, which includes the City of Diamond Bar. The City’s RHNA allocation for the 6th cycle planning period was 2,521 units, which was divided into income groups as follows:
Housing Element Annual Progress Report
Pursuant to Government Code Section 65400, local jurisdictions are required to file a Housing Element Annual Progress Report (APR) with HCD and the Office of Planning and Research (OPR) by the first of April each year. The APR (Attachment 1) outlines progress on the implementation of the adopted 6th Cycle Housing Element.
Tables A and A2 list approvals and permits issued in 2023 for housing units, categorized by income category. Table B counts those units toward the City’s RHNA obligation for the 2021-2029 planning period. Table D outlines progress toward implementation of the City’s Housing Element programs.
ANALYSIS:
Housing Units
According to the California Department of Finance (DOF) Diamond Bar had approximately 17,959 housing units in 2000, and 18,478 housing units in 2013. The DOF estimated that as of January 1, 2023, the City had 18,850 approximately housing units, comprised of 81.8% single-family residences, 16.4% multi-family units, and 1.9% mobile homes.
The City’s housing production for 2023 is summarized below:
• Four entitlement requests were approved for new single-family residences; • Six building permits were issued for new single-family residences; • 32 building permits were issued for new Accessory Dwelling Units (ADUs); • Three building permits were issued for new Junior Accessory Dwelling Units (JADUs);
• Three single-family residences received certificates of occupancy; and • 23 ADUs received certificates of occupancy.
The 2023 reporting period shows that there was a slight decrease in the number of total building permits issued for new housing units compared to that of the previous year (a total of 46 building permits issued in 2022). However, there was a significant increase in the number new housing units that received certificates of occupancy compared to that of the previous year (a total of 10 issued in 2022).
The number of ADUs in Diamond Bar continue to increase, largely due to the passage of several bills: SB 13, AB 881, AB 68(1), AB 587, and AB 671, which were intended to address the State’s housing shortage by easing development restrictions that cities and counties may place on ADUs. These new laws took effect on January 1, 2020, and on July 20, 2021, the City Council adopted Ordinance No. 01(2021), updating the City’s ADU regulations to comply with State law. Permits issued for ADUs will continue to increase, especially in light of more recent ADU legislation that took effect on January 1, 2023 (SB 897 and AB 2221). These bills made several changes to the existing law that clarify certain provisions, further ease development restrictions, and facilitate more expeditious permitting.
The State continues to pass legislation aimed to remove constraints on housing development. Notable housing bills enacted in 2023 include the following:
• SB 684 (Caballero): Streamlined Ministerial Approval and Construction of Ownership Housing Projects with 10 or Fewer Units on Sites Zoned for Multifamily Housing • SB 423 (Wiener): Amendment to SB 35’s Provisions for Streamlined Ministerial Review of Multifamily Housing Developments
• SB 4 (Wiener): Affordable Housing on Faith and Higher Education Lands Act of 2023 • AB 1490 (Lee): Adaptive Reuse of Existing Residential Buildings to Affordable Housing
• AB 1218 (Lowenthal): Expansion of Replacement Housing and Tenant Protection Law
• AB 1332 (Carrillo): Preapproval Program for ADUs
• AB 1287 (Alvarez): State Density Bonus Law Amendments • AB 812 (Boerner): Reserving Affordable Housing for Artists Future opportunities for housing production lie primarily with ADUs and development in the mixed-use districts created under current General Plan. In May 2022, the City entered into a Consultant Services Agreement with Torti Gallas + Partners to prepare the Town Center Specific Plan (TCSP) in one of those mixed-use districts, which is also one of the housing sites identified in the Housing Element to accommodate the RHNA.
The TCSP is an important component of the City’s overall strategy to revitalize older areas and expand housing production. The administrative draft specific plan and draft supplemental EIR are underway and expected to be released to the public in late Spring of 2024.
The 15 housing programs identified in the Housing Element include efforts to remove constraints to the maintenance, improvement, and development of housing, as listed under Table D of Attachment 1. All programs remained in effect during the reporting period.
PREPARED BY:
REVIEWED BY:
Attachments:
1. 5.4.a 2023 Annual Progress Report