EAST PALO ALTO
CITY COUNCIL
STAFF REPORT
DATE: February 21, 2023
TO: Honorable Mayor and Members of the City Council
VIA: Melvin Gaines, City Manager
BY: Karen Camacho, Housing & Economic Development Manager Elena Lee, Planning Manager
Hansom Hom, Deputy Manager, Special Projects
SUBJECT: 2023-2031 Housing Element Adoption
Recommendation
Staff recommends that the City Council conduct a public hearing and adopt a resolution that:
1. Adopts a General Plan Amendment (GP23-001) to update the Housing Element of the General Plan for the 6th Cycle Housing Element (“2023-2031 Housing Element”);
2. Finds that the 2023-2031 Housing Element affirmatively furthers fair housing and substantially complies with State Housing Element Law;
3. Repeals the 5th Cycle 2015-2031 Housing Element;
4. Finds the 2023-2031 Housing Element exempt from the California Environmental Quality Act under State CEQA Guidelines Section 15061(b)(3), common sense exemption; and
5. Direct and authorize Staff to provide the 2023-2031 Housing Element for the 6th Cycle to the Department of Housing and Community Development (“HCD”) for its 60-day Review, to file all necessary material with the Department of Housing and Community Development for the Department to find that the Housing Element is in conformance with State Housing Element Law, and to make all legally permissible changes to the Housing Element to make it internally consistent or to address any legally permissible changes or amendments requested by the Department to achieve certification.
Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:
Priority No. 6: Create a Healthy and Safe Community
Background
Executive Summary
The City of East Palo Alto (“City”) has prepared a second draft of the 2023-2031 Housing Element that will be resubmitted to the California Department of Housing and Community Development (“HCD”), in response to HCD’s comments on the first draft received on January 19, 2023, upon City Council adoption. On February 9, 2023, at a special meeting, the Planning Commission reviewed and unanimously approved this second draft, thereby recommending to the City Council for adoption. If City Council approves the Planning Commission’s and staff’s recommendation, the attached resolution authorizes staff to make all legally permissible edits to the draft Housing Element and submit the draft for HCD review. HCD will then have a 60- day review period to make a determination on whether the City’s Housing Element is certified, or whether additional changes are required for certification.
Housing Element Update Process
The Housing Element is one of eight State-mandated General Plan elements and is the only General Plan element subject to review and certification by HCD. The purpose of the Housing Element is to analyze the community’s current and future housing needs across various income categories; create, update, and guide housing policy in the City; and identify locations to accommodate the City’s Regional Housing Needs Allocation (“RHNA”) goals. The current Housing Element Update represents the 6th cycle of housing policy development for the City and covers an eight-year planning period from 2023 to 2031.
The City Council last reviewed draft sections of the Housing Element on July 19, 2022.
On August 29, 2022, City staff subsequently released the draft document for a 30-day public review period, as required by HCD, and made additional revisions in response to public comments received. This public review period represented the third phase of an extensive community outreach process for the Housing Element update which began in early 2020.
On October 21, 2022, City staff submitted the first draft of the Housing Element to HCD. HCD then had a 90-day review period. State law allows HCD up to 90 days to review and provide comments on the first submittal of a draft Housing Element. Since Bay Area cities must adopt their Housing Element by January 31, 2023, staff contacted HCD to determine if preliminary comments could be provided before the due date of the official response letter to facilitate a quicker turnaround. However, HCD was unable to send comments before the end of their 90- day review period.
In December 2022 and January 2023, HCD staff met briefly with City staff on two occasions to answer questions and provide initial comments on the draft Housing Element.
On January 12, 2023, HCD virtually met with staff and verbally provided an extensive list of their preliminary comments. Additional edits to the Housing Element were made based on these preliminary comments received from HCD on January 12, 2023.
On January 17, 2023, the City released a revised draft of the 2023-2031 Housing Element available for public review, based on preliminary comments received from HCD.
Between January 17, 2023 and January 23, 2023, the City received two comment emails/letters and one request for updates from the public. Appendix A8 of the Housing Element summarizes the public comments received and City responses.
On January 19, 2023, the City received HCD’s first review comments.
On January 23, 2023, City staff presented a progress report on the Housing Element process to the Planning Commission, and with an update on the preliminary HCD comments received on January 12th and key revisions made to the draft Housing Element based on these preliminary HCD comments. In short, these preliminary HCD comments pertained to: 1) Elaborating on how public comments have informed policies and programs; 2) clarifying and justifying the sites and housing units included in the Sites Inventory to meet RHNA; 3) explaining how water and sewage infrastructure constraints are being addressed; 4) refining and expanding policies, programs and actions to have measurable metrics and milestones that meet affordable housing and fair housing objectives; among other things. Staff indicated they would return to the Planning Commission at a later date with a report-back on HCD’s first review comments sent on January 19, 2023.
Since January 23, 2023, the City received one additional public comment/email and a few requests for further information from attorneys and developers.
On February 6, 2023, the City released another revised draft 2023-2031 Housing Element available for public review until February 13, 2023.
On February 9, 2023, City staff returned to the Planning Commission with the revised draft 2023-2031 Housing Element, the January 19, 2023 HCD Response Letter, and the City’s response to the HCD letter showing substantial compliance with Housing Element Law posted on the City’s Housing Element webpage at: <https://www.cityofepa.org/housing/page/housingelement-update-1>.
During the public hearing, the Planning Commission found the draft to substantially comply with State Housing Element Law and recommended that the City Council adopt the 2023-2031 Housing Element.
A summary of the Housing Element update process can be found in Table 1.
Table 1: Housing Element Update Process Timeline
Timeframe Activity
Early 2020 Staff began preparation for Housing Element: biweekly 21 Elements meetings, review of current Housing Element, review of new Housing Element laws, etc.
Spring 2021 Staff began analysis with 21 Elements: review of “sites strategies,” planning for community meetings, applications for funding and technical assistance
March 2021 -
July 2022
Initial Community Outreach
June 2, 2021 Community Meeting about Outreach Strategies March 10,
2021
Brief Informational update on Housing Element to Planning Commission
June 2, 2021 Community Meeting about Outreach Strategies July 19, 2021 Community Meeting #1 (virtual)
Feb. 24, 2022 Community Meeting #2 (virtual; in English & Spanish) March 14,
2022
Update on 2021 Housing Element and General Plan Annual
Progress Report to Planning Commission
March 15,
2022
City Council Authorization to Submit 2021 Housing Element Annual Progress Report, 2021 General Plan Annual Progress Report, and Housing Successor Agency Report to State Agencies
May 2, 2022 Equity Advisory Group Meeting
May 5, 2022 Community Meeting #3 (in-person and virtual; in English, Spanish & Tongan)
Feb. 24 - July
15, 2022
Online Surveys (Jamboard Survey and Policies & Programs Survey) April 26, 2022 Joint Study Session with Planning Commission and City Council May 25 - July
15, 2022
Balancing Act Online Survey
June 8 & June
15, 2022
Intercept Surveys at East Palo Alto Community Farmer’s Market (6 hours total)
July 11, 2022 Planning Commission Review of Draft Sections July 19, 2022 City Council Review of Draft Sections
Aug. 29 - Oct.
2, 2022
30-Day Public Review Period of Draft 2023-2031 Housing Element Late Aug. -
Late Oct. 2022
Revisions based on public input
Oct. 21, 2022 Draft Housing Element Submittal to HCD
Jan. 12, 2023 HCD Initial Verbal Comments
Jan. 19, 2023 HCD Written Comments after 90-Day Review Period Jan. 17 - Jan.
23, 2023
7-Day Public Review Period of Revised Draft 2023-2031 Housing Element
Jan. 23, 2023 Planning Commission Meeting
Feb. 6 - Feb
13, 2023
7-Day Public Review of Revised Housing Element
Feb. 9, 2023 Planning Commission Public Hearing and Recommendation to Adopt Feb. 21, 2023 City Council Adoption
Housing Element Deadlines
Jurisdictions that fail to adopt a housing element that has been found in substantial compliance within 120 days of the statutory deadline to revise the housing element (the deadline is January 31, 2023, and 120 more days is May 31, 2023), must complete all necessary rezones within one year of the statutory deadline, by January 31, 2024. Jurisdictions that successfully adopt and have a certified Housing Element by May 31, 2023 have three years from the deadline, so until May 31, 2026, to make appropriate rezoning.
To adhere to these deadlines, the following schedule was established:
· February 21, 2023 - City Council public hearing and adoption · Before March 1, 2023 - Submit 2nd Draft Housing Element to HCD* · Before April 30, 2023 - Receive HCD comments and/or compliance letter *Submittal by March 1, 2023 may occur only if further substantive revisions are made due to the 7-day public review requirement. Otherwise, staff will submit the revised and adopted 2023-2031 Housing Element before March 1, 2023.
Per HCD’s requirements, any subsequent draft revisions with substantive changes (not including minor clarifications, corrections, formatting changes, and typos) must be posted on the jurisdiction’s website and a link must be emailed to all individuals and organizations that have previously requested notices relating to the local government’s housing element. The mandatory posting period is at least seven days before the draft revisions can be submitted to HCD for review.
The purpose of this staff report is to seek the City Council's adoption of the 2023-2031 Housing Element, finding that the 2023-2031 Housing Element substantially complies with Housing Element Law, and recommendation for the draft to be forwarded to HCD thereafter. HCD then has up to 60 days to review the revised Housing Element and provide additional comments or issue a letter affirming compliance.
Analysis
HCD Comment Letter and Staff Revisions
HCD’s January 19, 2023 comment letter on the City’s first draft Housing Element pertained to the following statutory requirements:
A. Review and Revision: Outcomes of 5th cycle Housing Element and response in 6th cycle Housing Element. Reviewing and analyzing the appropriateness and effectiveness of the previous housing element, especially as it pertains to special needs populations.
B. Housing Needs, Resources, and Constraints: providing further data and analysis of fair housing needs and sites inventory in the City.
C. Housing Programs: adding and modifying programs with definitive implementation timelines and milestones, quantified metrics, and responsible agencies and officials, and adding programs that implement the sites inventory and affirmatively further fair housing goals.
D. Quantified Objectives: Adding quantified objectives for construction, rehabilitation, and conservation by income group.
E. Public Participation: Describing how public input was considered and incorporated.
F. Consistency with General Plan: Discussing how internal consistency with the General Plan will be maintained through the planning period.
State law requires that the City adopt a substantially compliant housing element. This question of substantial compliance is one of law, over which a court has independent authority to determine. After reviewing HCD’s revisions and making edits, staff believes and the Planning Commission agreed, that the current iteration of the 2023-2031 Housing Element currently before the Council substantially complies with Housing Element Law. An overview of the City’s response to HCD comments and revisions made for substantial compliance can be found in Attachment 3. In addition, Exhibit B of the Resolution provides an overview of the City’s substantial conformance of the Housing Element with State Housing Element Law (see Attachment 1).
Below are a few key highlights in the revisions made to the draft 2023-2031 Housing Element, based on the list provided above. See the revised 2023-2031 Housing Element in Attachment
2. A) Review and Revision
HCD asked that the Housing Element analyze the appropriateness of goals, objectives and policies, and what has been learned from previous results. In addition, it asked for an analysis of the cumulative impact and effectiveness of previous housing element’s programs in addressing the housing needs for all special needs populations. A review and evaluation of the 5th cycle Housing Element is in Appendix E: RHNA 5 Housing Workplan Progress of the 2023- 2031 Housing Element. An analysis of the cumulative impact and effectiveness of the previous housing element’s programs to address the housing needs for special needs populations were added in Chapter 7, Section 7.1: Accomplishments of RHNA 5 Housing Element Period.
B) Housing Needs, Resources and Constraints
HCD asked more details about the process for referring fair housing complaints. In Chapter 4, Section I: Fair Housing Enforcement and Outreach Capacity, staff added more details about how fair housing complaints can be filed with the City’s Rent Stabilization Program, Housing, and/or Code Enforcement. In addition, staff updated the City’s website to include links to fair housing resources. The City also discussed other resources such as Community Legal Services in East Palo Alto, Legal Aid Society of San Mateo County, and Project Sentinel that can provide legal assistance, as well as more local organizations through the Measure O antidisplacement program that can provide education, advocacy and outreach.
HCD asked for more data analysis, specifically pertaining to local concentrations of familial status and what contributes to disparities in the area bordering Melo Park, data on what contributes to lower access to jobs and high unemployment within the City, what contributes to high concentrations of cost burden, overcrowding, and substandard housing, and for policies and programs to address these issues. The city added further analysis in Chapter 2: Housing Needs Assessment, in Chapter 4: Affirmatively Furthering Fair Housing - An Assessment of Fair Housing, in Appendix B: Housing Needs Data and in Appendix C: Affirmatively Furthering Fair Housing.
HCD also asked for the City to identify and analyze the number of existing extremely low income (“ELI”) households and clarify the total number of projected ELI households and the projected housing need of ELI households. The City identifies and analyzes the existing ELI households by tenure in Chapter 2, Sections 2.5 and 2.6, and in Appendix B. It projects the housing need and projected ELI units in Chapter 5. In summary, 3,837 of East Palo Alto’s households are 0-50% area median income (“AMI”), while 1,918 are extremely low-income.
Therefore, ELI households represent 50 percent of households who are 0-50% AMI, as 1,918 divided by 3,827 is 50%. The projected housing need for ELI households is therefore 83 ELI units (half of 165 very low-income units in the RHNA). This methodology aligns with HCD’s guidance to use U.S. Census data to calculate the percentage of very low-income RHNA that qualifies as extremely low-income households. There are approximately 231 projected extremely low-income units for the 2023-2031 planning period (half of 461 projected very lowincome units in the opportunity sites is 230.5).
HCD asked for the City to analyze the condition of existing housing stock and further analyze its substandard housing. While a survey of the condition of the housing stock is not available, staff was able to assess housing conditions through a review of code enforcement records and records from administration of the City’s Rent Stabilization program. This information was added to Chapter 2 of the Housing Element (see Section 2.12.2.D in the Housing Element).
The City tracks substandard housing through complaints filed with the Rent Stabilization Program, which typically are filed by households both in rent stabilized and non-rent stabilized units, and through code enforcement cases submitted to Building/Code Enforcement. Between 2016 and 2022, the City had substandard housing code enforcement cases open at ten different locations, nine of which were in single-family home neighborhoods and one of which was in a multi-family home neighborhood. The cases included: sheds housing people, unsafe electrical and gas, junk and debris, dilapidated housing, and other items that were deemed “substandard housing.” Between 2015 and 2022, the City had substandard housing petitions/complaints at 36 different locations, the majority of which were located in the West of Highway 101, where a majority of rent stabilized units remain. Rent Stabilization Program petitions/complaints also came from buildings along Bay Road, where a bigger portion of large multi-family apartments are located, and in smaller 2-4-unit buildings located in single-family home neighborhoods on the East side of Highway 101. These petitions/complaints filed were primarily for habitability or maintenance problems, as well as service reductions.
Below is a map of the substandard housing frequency (also found in Chapter 2):
HCD also asked for the Sites Inventory section to be updated to demonstrate affordability based on actual sales price, rent level or mechanisms for ensuring affordability (such as deedrestrictions). Staff was able to obtain projected rents from the developer on the recently entitled Woodland Park Euclid Improvements apartment project, which are discussed in the Appendix D: Sites Inventory. Based on the developer’s rent data, and staff’s market analysis, staff was able to determine that 271 of the 444 net new housing units in the approved Euclid Improvements project (the studios and 1-bedroom units) could be considered moderateincome, while the other 173 units (2-bedroom units) could be considered above-moderate income. The other sites with affordable housing units contained affordability through the City’s Inclusionary Housing Ordinance, which requires inclusionary units to be deed-restricted.
HCD requested further justification for the sites inventory, including realistic capacity and justification for zoning assumptions. As a result, staff made the following changes to the sites inventory RHNA strategy (also see Chapter 5 and Appendix D of the Housing Element):
· Updated pipeline of sites inventory and stages in process. Added recently entitled projects and recategorized additional projects that have moved from preliminary applications to planning staff review.
· Provided justification for classifying some Euclid Improvements Project units as moderate-income rather than above-moderate income (as described above). · Updated projected number of ADU units to be permitted in the next eight years using the unit counts from previously submitted Annual Progress Reports, and adding 2022 permitted units numbers.
· Removed SB 9 from sites inventory, and moved SB 9 sites inventory analysis to Appendix D1 to provide further evidence for potential future development of moderate income units and create flexibility in meeting RHNA needs. · Added County’s letter of intent for development on 2277 University (current Cityowned site likely to swap with a County-owned site for housing construction). Note that units were classified as above-moderate income units due to HCD’s requirements that do not allow jurisdictions to designate parcels less than half an acre for low-income housing without sufficient evidence of potential development of affordable housing.
· Removed 2415 University (current City Hall location) from the list of opportunity sites after further feasibility analysis of the narrow site.
· Removed 590 Bell St from the list of opportunity sites due to rezoning requirement. · Added justification for development on nonvacant sites based on site conditions, developer interest, and the likelihood of commercial uses on nonvacant sites converting to residential developments.
Table 2 below summarizes the City’s revised RHNA strategy. With the adjustments described above, the City meets and exceeds the RHNA in every category, with a greater than 30% buffer of units for each income category. Overall, the City’s RHNA 6 sites inventory plans to meet 216% of the RHNA 6 goals.
Table 2: Total Units from Sites Inventory Sites vs. RHNA 6 VLI LI MOD AboveModTotal
Housing Opportunity
Sites
461 243 341 749 1794
RHNA 6 165 95 159 410 829
Percentage of RHNA 6 280% 256% 214% 183% 216%
Difference 296 148 182 339 965
Percentage difference 179%
over
156%
over
114%
over
83%
over
116%
over
Source: Revised Draft East Palo Alto Housing Element 2023-2031, Table 5.1.A.
HCD also asked for programs to address water and sewer infrastructure constraints. The City provided a description of how it has addressed water infrastructure constraints within the last two years (see Section 3.2: Infrastructure Constraints in the Housing Element). The City further elaborated on and provided updates on the process working with the East Palo Alto Sanitary District in Section 3.2.
In addition to providing more information on how the City is addressing water and sewer infrastructure constraints, the City also added policies and programs showing the City’s commitment toward resolving these constraints (see Goal 5 in Table 6.1: Summary of RHNA 6 Goals, Objectives, and Policies & Programs of the Housing Element, and in Appendix 6.4:
Implementation Plan of the Housing Element). In short, Goal 5 has the following additions:
· Program 5.1: Update the Environmental Justice Element (Health and Equity) in the City’s General Plan to include a comprehensive set of policies and programs and an implementation plan to address environmental justice issues in the community; scope of work to include a robust community engagement process is integrated into the preparation of this Element.
· Program 5.2: Establish and implement a plan to address the San Mateo County Local Agency Formation Commission (SMCLAFCo) Municipal Service Review and to resolve the delays to housing development caused by issues with the East Palo Alto Sanitary District.
· Program 5.3: Implement the Water System Master Plan adopted in 2022 and complete the first-phase capital improvements in the plan. Update the Urban Water Management Plan to conform with the Master Plan and ensure adequate water service to parcels in the Sites Inventory (adequate water supply but water infrastructure upgrades may be needed for certain locations.)
· Policy 5.4: Work with water and sewer service providers to adopt a policy that prioritizes water and sewer capacity allocations to affordable housing projects and low-income households per SB1097.
HCD asked that the City add information about environmental constraints, which were added to Section 3.3.6 of the Housing Element under non-governmental constraints.
HCD requested details about the development standards of industrial transition zones that allow emergency shelters by-right, and the City added Program 10.2 to update the City’s zoning and development standards.
HCD asked for more clarity on zoning districts in which Single Room Occupancy (SRO) units are allowed, where housing for farmworkers is allowed, and where manufactured and mobile homes are allowed. The City clarified that SROs are not distinguished from other multi-family uses in East Palo Alto’s Development Code and are allowed wherever residential uses are allowed; farmworker units can include “housekeeping units” as defined in the Development Code; and manufactured and mobile housing on a permanent structure is not distinguished from conventional single-family dwellings in the City’s Development Code.
HCD asked for other planning-related items such as design review, on/off site improvements, zoning and development standards transparency. See the City’s response to HCD’s letter for more details.
C) Housing Programs
HCD requested that the policies and programs have a description of the City’s role in implementation, and measurable metrics and milestones. For each policy and program, staff added lead or responsible City divisions, concrete implementation timelines and when possible, quantified objectives in Section 6.4: Implementation Plan.
HCD also asked for a program to address potential shortfalls of sites for zoning to encourage a variety of housing types. Chapter 5: Sites Inventory Analysis and Appendix D: Sites Inventory were revised to further reinforce the validity of sites and probability of development in the 6th Cycle Housing Element. Staff do not expect to realize a shortfall of sites, as the identified opportunity sites exceed the RHNA requirements for each income category by more than the 30 percent buffer required, and cumulatively exceed the RHNA by 116 percent.
HCD requested a back-up option for the overlay zone program, which Council had initially considered and incorporated in the previous draft Housing Element. However, staff have removed the program from the Policies and Programs, as recent state laws such as by-right housing (SB 35), streamlined development review process (SB 330), allowance of residential uses in commercial districts (AB 2011), and elimination of parking in transit areas (AB 2079) effectively reduce the need for this type of program.
HCD asked that the City clarify whether rezoning for the Ravenwood Business District/Four Corners Specific Plan (RBD), and several other sites, would be needed to meet the City’s RHNA, and if so, the zoning must permit multi-family housing uses without discretionary action.
Staff recognizes that limited sites in the Sites Inventory will need to be rezoned to allow residential uses, which includes several sites in the RBD. However, it is not certain that these sites will be necessary to meet the City’s RHNA for lower-income households. Nevertheless, the City acknowledges the Government Code sections regarding the limitation on discretionary review if applicable.
The other sites that HCD inquired about potential rezoning, the Senior Center at 560 Bell Street and Gateway 101 Retail Site, were removed from the Sites Inventory. The Senior Center at 560 Bell St. may be considered for future rezoning and development of housing, and a program in the Housing Element remains to explore this option, however, it has been removed from the RHNA sites inventory count. In addition, the Gateway 101 Retail Site has been removed from the Sites Inventory as the General Plan prioritizes retaining this property for commercial uses. The property will also be difficult to rezone because it consists of multiple parcels under separate ownership. There is also no active discussion about possibly adding residential uses on the property.
HCD asked for a specific implementation action for the RBD Specific Plan Density Bonus/Relaxed Zoning Program, and staff added clarity on how this program will be considered in Program 10.8.
HCD asked for clarity on whether the 2277 University site (current 0.36-acre City site with potential for future affordable housing development by the County) would be needed to meet the City’s RHNA, and staff identified that this site would not be needed given the large buffer the City has in its sites inventory. Staff also indicated that rezoning would not be required.
According to Gov. Code § 65583.2, subd. (c)(2)(A), sites smaller than a half-acre size are deemed inadequate to accommodate housing for lower-income housing unless it is demonstrated that sites of equivalent size were successfully developed during the prior planning period for an equivalent number of lower-income housing units as projected for the site or unless the Housing Element describes other evidence to HCD that the site is adequate to accommodate lower-income housing. In Appendix D: Sites Inventory, staff explain how the current zoning for this site is MUC-1, which allows for 22-65 swelling units per acre. Given the intent to use this site as affordable housing, and the likelihood the County will merge the parcel with a neighboring parcel to total over 0.5 acres, this site could be developed with 20 very-lowincome units. However, given HCD constraints for suitability of sites, staff assumed 20 above moderate-income units at 55 du/acre, roughly the average of two other similar already entitled sites.
HCD asked for a complete analysis of potential governmental and nongovernmental constraints, and for the City to have programs to remove these constraints when legally possible, to develop housing for all income levels and for people with disabilities. Policy 4.8 was added to address the City’s existing reasonable accommodations ordinances. Policies
1.4, 4.8, 5.9, and 7.1 address special needs populations, which includes persons with disabilities.
HCD asked that the program to update the development code for inconsistencies with the General Plan be more specific about the actions that will be taken, and staff addressed this with Policy 10.8, which will ensure any inconsistencies in the Ravenwood Business District/Four Corners Specific Plan will be eliminated with the adoption of the specific plan update, which is expected by the end of 2023.
HCD asked that the objective development standards program clarify what type of developments will have these objective standards, and staff clarified in Policy 1.1. that they would cover both single family and multi-family developments.
HCD asked that all the goals and actions be revised based on the affirmatively furthering fair housing (“AFFH”) analysis, and response to contributing factors to fair housing issues. Based on the results of review of the outcome of the 5th cycle Housing Element, the AFFH analysis, and community input during the public outreach for the 6th cycle Housing Element, priority fair housing needs were identified. Chapter 6: Policies and Programs contains various policies and programs that respond to needs such as: anti-displacement, rent registry, homebuyer assistance, mortgage and rental assistance, foreclosure assistance, living wage employment, housing counseling, affordable housing development, housing rehabilitation, large-family households, alternative housing solutions, standardized review metrics (including ADUs and SB 9, special needs populations, and unhoused populations).
HCD asked that the “Next Phase” Streamlining for ADUs and SB 9 Program contain specific action to streamline approval, and staff modified policies 1.7 and 10.5 to discuss measures to streamline, as well as added policies/programs 1.8, 1.10 and 1.25 to discuss incentives for ADUs and SB 9 projects. Policy 1.10 includes the option of either the City preapproving ADU designs or participating in a program with 21 Elements and San Mateo County to facilitate streamlined review of ADUs.
The summary of RHNA 6 goals, objectives and policies & programs were refined to include more commitment and address affordable housing and fair housing objectives. For example, for previously proposed policies and programs, HCD asked that the City expand and provide more specificity, such as pertaining to:
· Accessory Dwelling Units (ADUs)
· SB 9 projects
· Incentives and financial assistance for affordable housing · Development standards and streamlining measures
· Fair housing
· Special needs populations
· Unhoused population
· Community outreach
In summary, new policies and goals were added to address the following topics:
· Goal 1: Create more housing opportunities, and more housing that is affordable to East Palo Alto residents.
o Processing guidelines for projects that qualify for by-right or administrative approval and CEQA exemption;
o Expediting processing of residential projects that commit housing units for special needs populations;
o Seeking financial assistance for affordable housing projects; o Legalizing unpermitted second units; making zoning amendments; streamlining approval of ADUs (e.g. pre-approved building plans);
o Financial incentives for building ADUs (e.g. fee waivers) o Implementing recently approved Measure L
· Goal 2: Create homeownership opportunities for East Palo Alto residents and stability for existing homeowners.
o Funding for first-time homebuyer program
· Goal 3: Promote stewardship and preservation of the City’s existing affordable housing stock.
o Protecting and preserving City’s rent-stabilized units through City’s Rent Stabilization Program.
· Goal 4: Prevent displacement of East Palo Alto residents. o Developing rehabilitation program for single-family homes and multi-family apartments.
o Evaluating establishing mortgage assistance program.
o Evaluating creating a home repairs program for low-income homeowners o Implementing Measure HH
· Goal 5: Apply environmental justice principles in planning for new housing development. o Collaborating with water and sewer service providers to adopt policy prioritizing water and sewer capacity allocations to affordable housing projects and lowincome households. o Updating General Plan Environmental Justice Element with targeted and robust outreach
o Implementing Measure O.
· Goal 6: Promote safe and healthy housing in East Palo Alto. o Updating Safety Element to address natural disasters with targeted and robust outreach.
o Consider further amendments to Reach Code for building electrification · Goal 7: Create more housing opportunities for special needs households, including large households, people at risk of or experiencing homelessness, and individuals with disabilities
o Continuing to support WeHOPE, which provides interim shelter and supportive services for unhoused individuals.
o Incentivizing production of housing for Extremely Low Income households · Goal 8: Improve transparency and communication between the City and the public on housing issues.
o Expanding measures to inform homeowners, landlords and tenants about resources.
o Creating a budget for mailers and non-digital outreach. · Goal 9: Build City capacity for long-term housing planning and implementation of a range of Housing programs and initiatives.
o Working with grants coordinator to apply for funding for affordable housing. o Regularly review status of Sites Inventory
· NEW Goal 10: Amend Zoning and Development Regulations to Facilitate Housing o Requiring replacement housing per state law
o Updating zoning and development standard to comply with state law:
§ Emergency shelters
§ Permanent supportive housing
§ Definition of "housekeeping unit"
§ ADUs
§ Parking
o Adopting Ravenswood/Four Corners Specific Plan Update, including zoning for residential uses and resolving General Plan/zoning inconsistencies Appendix 6.4: Implementation Plan contains changes to the deadline dates in the eight-year period, responsible City departments, measurable metrics and milestones, and updates based on goals the City has already progressed on.
D) Quantified Objectives
HCD wanted an overview of quantified objectives for construction, rehabilitation and conservation by income group, including extremely low-income households, for the next five years. Table 5.0.B in Chapter 5: Sites Inventory Analysis has the quantified objectives as follows:
Note that currently, the City has a $2 million housing preservation loan program for Palo Mobile Estates residents, but currently, we cannot affirmatively project how many homes will be preserved given no applications have been submitted yet. The City has the Partnership for the Bay’s Future Breakthrough Grant to advance housing preservation, but has not yet committed to the preservation of specific properties. Therefore, the projected conservation number is zero across all income categories. Policies 4.3 to 4.6 in Chapter 6 site specific objectives to promote the preservation of existing housing stock and rehabilitation of housing that is at-risk due to age and structural deficiencies.
E) Public Participation
HCD sought more details pertaining to how public comment was considered and incorporated in the Housing Element. In Section 1.3: Outreach and Public Participation Process, Section
1.3: How We Incorporated What We Heard Into the Plan, and Appendix A, Public Outreach and Participation, we updated and summarized the most recent public comments, and our response. The most recent comments were received during the public review period for the second draft of the Housing Element issued on January 17, 2023, and during the public review for the third draft of the Housing Element which extended for seven days until February 13, 2023. Attachment 4 provides the comment letters received during these two public review periods. Additional comments sent via email are addressed in the Housing Element Appendix A8: Public Review Period. Public comments were also received during the Planning Commission meeting on January 23, 2023 and the Planning Commission hearing on February 9, 2023.
F) Consistency with the General Plan
HCD sought further discussion on how internal consistency will be maintained throughout the planning period. In Chapter 5: Sites Inventory Analysis, staff added language clarifying that the City is not a charter City; as a general law City, it must maintain consistency between the General Plan and Development Code. Currently, the only inconsistencies between the General Plan and Development Code pertain to limited properties in the Ravenswood Business District/Four Corners Specific Plan Area. These inconsistencies will be resolved with adoption of the Specific Plan.
CEQA Exemption
Exhibit C of the Resolution provides a Notice of Exemption justifying why the Housing Element is exempt from the California Environmental Quality Act (“CEQA”) under State California CEQA Guidelines Section 15061(b)(3) common sense exemption. In short, the proposed 2023-2031 Housing Element as a policy document would not have a significant physical effect on the environment.
Next Steps
If Council accepts the staff report and adopts the attached resolution, City staff will submit this draft of the 2023-2031 Housing Element for the 6th Cycle to the Department of Housing and Community Development (“HCD”) for its 60-day Review.
Public Notice
Notice of the public hearing was published in the San Mateo Daily Journal on February 10, 2023. The public was provided notice by making the agenda and report available on the City’s website and on a bulletin board located at City Hall: 2415 University Avenue, East Palo Alto.
In addition, notice of the public hearing was emailed to all individuals and organizations that have previously requested notices relating to the local government’s Housing Element, and all California Native American tribes on the contact list provided by the Native American Heritage Commission and to other entities listed.
Environmental
The Housing Element (“Project”) is exempt under State CEQA Guidelines Section 15061(b)(3) common sense exemption, because the Project involves the City’s policies and programs to update its Housing Element and meet its RHNA allocation that either: would not cause a significant physical effect on the environment; the RHNA allocation could be met with projects are have been or will be analyzed under CEQA associated with normal application processing; or reflect policies that are consistent with and have been adequately analyzed within the City of East Palo Alto General Plan Vista 2035 EIR (SCH No. 2014092027).
Given its nature and scope, the proposed 2023-2031 Housing Element programs and policies would not result in direct or indirect physical environmental impacts. Specifically, the 2023- 2031 Housing Element does not grant any development entitlements or authorize development beyond what is allowed under the City’s current General Plan and Zoning Code (Municipal Code Title 18). Future housing development pursuant to the 2023-2031 Housing Element would be subject to compliance with the established regulatory framework, namely federal, State, regional, and local (i.e., General Plan policies, Municipal Code standards, and Standard Conditions of Approval). While by-right housing projects may be exempt from CEQA, all future housing development pursuant to the 2023-2031 Housing Element would be subject to further development and environmental review, which may include supporting technical studies and other information that will further satisfy CEQA. Based on these factors, it can be seen with certainty that the proposed 2023-2031 Housing Element as a policy document would not have a significant physical effect on the environment; therefore, the 2023-2031 Housing Element is exempt from CEQA under the common sense exemption.
Based on these factors, it can be seen with certainty that the proposed 2023-2031 Housing Element as a policy document would not have a significant physical effect on the environment; therefore, the 2023-2031 Housing Element is exempt from CEQA under the common sense exemption.
Attachments
1. Resolution
2. Revised 2023-2031 Housing Element
3. City Response to January 19, 2023 HCD Letter
4. Public Review Comment Letters