Fremont City Council Meeting: 11/14/23 07:00 PM
3300 Capitol Avenue Div/Dept: Planning
Fremont, CA 94538 Category: Code Adoptions & Amendments
SCHEDULED
Sponsors:
COUNCIL STAFF REPORT (ID # 5030) DOC ID: 5030
Updated: 11/8/2023 9:31 AM by Susan Gauthier Page 1
2023 CODE UPDATES - HOUSING ELEMENT PROGRAM IMPLEMENTATION - CITYWIDE (PLN2023-00213) - Public Hearing (Published Notice; Display Ad) to consider text amendments to various chapters of Fremont Municipal Code Title 17 (Subdivisions) and Title 18 (Planning and Zoning), as well as a resolution amending the City’s various design guidelines to include, confirm, and/or clarify objective standards for design review permit approvals pertaining to housing developments, to comply with State law and implement various programs of the City’s 2023-2031 Housing Element; and to consider exemptions for the proposed amendments from the requirements of the California Environmental Quality Act (CEQA), each on a separate and independent basis, pursuant to CEQA Guidelines §15061 (Review for Exemption), §15183 (Projects Consistent with a Community Plan, General Plan, or Zoning), §15262 (Feasibility and Planning Studies), §15268 (Ministerial Projects), §15305 (Minor Alterations in Land Use Limitations), §15311 (Accessory Structures), and §15378 (Project).
Contact Persons:
Name: Mayank Patel Dan Schoenholz
Title: Associate Planner Community Development Director Div/Dept: Planning Community Development
Phone: (510) 494-4450 510-494-4438
E-Mail: [email protected] [email protected]
Executive Summary: The City’s 2023-2031 Housing Element, which is part of Fremont’s General Plan, sets forth housing policies, goals, and objectives for the City and implementation programs to achieve these objectives. Staff is proposing amendments to Fremont Municipal Code Title 17 (Subdivisions) and Title 18 (Planning and Zoning) to implement the first batch of 14, out of a total of 94, programs from Fremont’s 2023-2031 Housing Element. This report fulfills the City’s obligations required to be completed within 12 months of Housing Element Adoption. Implementation of these programs would allow the City to comply with State housing law and meet its goals to:
1) Help current residents maintain stable and safe housing in Fremont. 2) Promote production of new affordable and market-rate housing. 3) Maximize support and resources for affordable housing production. 4) Address disparities in access to housing and disproportionate housing needs. 5) Maintain a compliant housing element and zoning ordinance.
Compliance with all State law is mandatory, and currently, Staff relies on informational handouts, forms, application materials, and other prescribed processes, to implement and apply recently passed legislation. If approved, the proposed amendments would formally update local regulations to comply with State law and facilitate the production of housing developments, clarify residential development standards, and safeguard affordable housing units in the city.
Council Staff Report (ID # 5030) Meeting of November 14, 2023 Updated: 11/8/2023 9:31 AM by Susan Gauthier Page 2
Therefore, to be consistent with Fremont’s General Plan and State housing law, including removing constraints and barriers that impede the development of a variety of housing types, Staff requests that the City Council adopt the proposed Ordinance (Attachment A) and Resolution (Attachment B).
On October 26, 2023, the Planning Commission held a public hearing to consider the proposed amendments and voted 6-0, with one commissioner absent, to recommend that the City Council adopt the proposed ordinance and resolution.
BACKGROUND:
The Housing Element
Since 1969, the State of California requires that all local governments adequately plan to meet the housing needs of everyone in the community. To meet this requirement, local governments adopt a “housing element” as part of their general plan, which is a bluepri nt for meeting the community’s long-term vision for the future. Housing elements consist of several major components, including community engagement, needs assessment, constraints analysis, and affirmatively furthering fair housing. Additionally, local governments are required to set forth a schedule of actions to implement various programs—informed by goals, policies, and objectives—in their housing elements to address the housing needs of all economic segments. As such, the housing element is a key planni ng document for local governments.
On January 10, 2023, the Fremont City Council voted unanimously to adopt the 2023–2031 Housing Element for Fremont. Shortly after its adoption, the Housing Element was submitted to the State Department of Housing and Community Development (HCD) for review and certification. HCD is responsible for reviewing every housing element in the state and determining whether the housing element complies with State law. On March 22, 2023, HCD certified Fremont’s 2023–2031 Housing Element.
The purpose of Fremont’s 2023-2031 Housing Element is to meet the housing needs of everyone in the Fremont community over the next eight years. The Housing Element creates a framework of goals, policies, and programs which respond to:
• The community’s values, concerns, priorities, and vision regarding housing; • The community’s housing needs;
• The constraints to housing in Fremont; and
• The community’s fair housing challenges.
The 2023-2031 Housing Element includes key policy commitments including updat ing the City’s ordinances and standards to allow for more housing development and streamlined permitting processes for housing projects. The City’s Housing Element implementation programs play a vital role in helping California meet its housing needs. For this reason, State housing law includes a number of enforcement mechanisms to ensure that the City complies with the Housing Element Law and implements its Housing Element. For example, a non-compliant Housing Element can result in ineligibility or delay in receiving State funds, financial penalties, legal ramifications, and/or loss of local land use authority.
Council Staff Report (ID # 5030) Meeting of November 14, 2023 Updated: 11/8/2023 9:31 AM by Susan Gauthier Page 3
To comply with the Housing Element Law and related commitments made to HCD in connection with its certification of the Housing Element, the City needs to carry out and implement certain programs, including Programs 16, 17, 18, 32, 34, 36, 37, 44, 45, 46, 69, 74, 76, and 91, before January 10, 2024.1 Implementation of the subject programs requires text amendments to Fremont Municipal Code (FMC) Title 17 (Subdivisions) and Title 18 (Planning and Zoning). Staff prepared the proposed text amendments (2023 Code Update) with the intent and interest of implementing changes in State housing law and fulfilling the City’s Housing Element commitments. Staff requests that the Planning Commission evaluate the 2023 Code Update and recommend the proposed amendments to the City Council.
Community Outreach
The 2023-2031 Housing Element was shaped by over a year of community and stakeholder input and engagement. In preparing the 2023-2031 Housing Element, Staff strived to facilitate meaningful public participation from all segments of the community, particularly those with special housing needs. Attachment E summarizes the thorough community engagement efforts that went into developing the City’s Housing Element goals and programs. The community outreach included presentations to the City’s various boards, commissions, committees, and Council. In addition, Staff also conducted additional outreach efforts, including but not limited to, engaging in listening sessions, hosting panels and workshops, and providing office hours. The 2023 Code Update intends to implement the City’s Housing Element commitments, which the community helped inform.
Planning Commission Hearing
On October 26, 2023, the Planning Commission held a public hearing to consider the proposed amendments and voted 6-0, with one commissioner absent, to recommend that the City Council adopt the proposed ordinance. There was one public comment on the item and that comment was in support of the proposed amendments. The Planning Commission asked a few clarifying questions on topics such as supportive and transitional housing, accessory dwelling units, Senate Bill 9, program implementation timeline, and recent bills signed by the Governor. For more information, please see Attachment F for the Draft Planning Commission Meeting Minutes.
DISCUSSION/ANALYSIS:
The proposed FMC text amendments (2023 Code Update) would update Title 17 (Subdivisions) and Title 18 (Planning and Zoning) to implement Programs 16, 17, 18, 32, 34, 36, 37, 44, 45, 46, 69, 74, 76, and 91 from the City’s adopted and certified 2023-2031 Housing Element, as further detailed in Table 1 below and in Attachments C and D to this report. Implementation of the subject programs would align the City’s Planning and Zoning Ordinance with recent changes in State law. These State laws were enacted to effectively facilitate the development of affordable housing, shared-living residences, supportive and transitional housing, and “missing middle” housing.
Table 1 lists the programs that are the subject of the 2023 Code Update.
Table 2 notes the FMC parts that are primarily affected by the 2023 Code Update.
1 The subject programs need to be implemented within 12 months from the date the 2023 -2031 Housing Element was adopted.
Council Staff Report (ID # 5030) Meeting of November 14, 2023 Updated: 11/8/2023 9:31 AM by Susan Gauthier Page 4
Table 1
Housing Element Programs – 2023 Code Update
1. Program 16. Mandatory Replacement of On-Site Units.
2. Program 17. Develop and Refine Objective Design Standards Consistent with State Law to Provide a Predictable Basis to Review Housing Projects.
3. Program 18. Develop Objective Findings for Residential Projects.
4. Program 32. Expand Homeownership Opportunities within Existing Highest Resource Neighborhoods.
5. Program 34. Eliminate Parking Requirements in TOD Areas.
6. Program 36. Update Mixed-Use Zoning Standards.
7. Program 37. Update Zoning to Reflect Intensity Permitted Under SB 478.
8. Program 44. By Right Approval of Projects with 20% Affordable Units.
9. Program 45. Update Zoning to be Consistent with State Density Bonus Law.
10. Program 46. Offer Additional Flexibility in Satisfying Open Space Requirements.
11. Program 69. Address Zoning Barriers to Create Housing Opportunities for People with Disabilities.
12. Program 74. Address Zoning Barriers for Low-Barrier Housing Navigation Centers and Emergency Shelters.
13. Program 76. Remove Zoning Barriers for Supportive and Transitional Housing.
14. Program 91. Audit Warm Springs Innovation District for General Plan and Zoning Consistency.
Table 2
Category FMC Reference Synopsis
Definitions
• 18.25 – Definitions
Definitions are amended, repealed, or
expanded to promote consistency with
State law and precision in the
interpretation of the Planning and Zoning
Ordinance.
Zoning Districts
• 18.43 – City Center
Districts
• 18.45 – Commercial and
Mixed Use Districts
• 18.47 – Downtown District
Requirements for all residential projects
are updated to require replacement of
any on-site units for housing
developments that involve demolition of
existing units. Use regulations are
amended to correct, clarify, or include
Council Staff Report (ID # 5030) Meeting of November 14, 2023 Updated: 11/8/2023 9:31 AM by Susan Gauthier Page 5
• 18.49 – Warm Springs
Innovation District
• 18.90 – Residential
Districts
uses such as emergency shelters,
residential care facilities, and low-barrier
navigations centers as permitted uses in
any residential, mixed use, or
commercial district that allows for
mixed-use residential.
Planned Districts
• 18.110 – P Planned
Districts Repeals FMC §18.110.030 to allow
single-family residential lots to be
developed to the density established by
the City’s General Plan (8.7 dwelling
units per acre). The proposed
amendments also help implement
Program 17, which requires the City to
revise its adopted Design Guidelines,
including those for Small-Lot Single-
Family Residential Developments.
Combining and
Overlay Districts
• 18.137 – Housing Element
Sites Inventory Overlay
• 18.152 – Transit-Oriented
Development Overlay
District
A new overlay, for sites identified in the
City’s Housing Element, is added to
facilitate by-right development of
housing development projects that
comprise 20-percent of the project units
to lower-income households. Minimum
parking requirements for sites within the
TOD are amended to align with State
law.
Other Zoning
Regulations
• 18.153 – Accessory
Structures
• 18.165 – Density Bonus
and Affordable Housing
Incentives
• 18.183 – Parking, Loading
Areas and Vehicle Storage
Other zoning regulations are amended to
update the regulations applicable to
detached accessory structures and
housing developments that utilize
density bonus and preservation of
affordable housing units. In addition,
parking requirements are updated to
exempt qualifying projects from
minimum parking requirements.
Special
Provisions
Applying to
Miscellaneous
Uses
• 18.190 – Special
Provisions Applying to
Miscellaneous Uses
Special provisions for miscellaneous uses
are amended to ensure that emergency
shelters, supportive housing, low barrier
navigation centers, and certain
affordable housing projects can be
processed by-right, in consistency with
State law. In addition, new standards
Council Staff Report (ID # 5030) Meeting of November 14, 2023 Updated: 11/8/2023 9:31 AM by Susan Gauthier Page 6
are added to facilitate small housing
development projects (3 to 10 units).
Permitting
Procedures and
Requirements
• 18.235 – Design Review
Permits
• 18.265 – Reasonable
Accommodations for
Persons with Disabilities
Design review permitting procedures are
amended to streamline qualifying
projects under state law. Findings are
amended to include objective findings for
projects that comply with all objective
General Plan, Zoning, and Community
Plan standards.
General Plan Conformance
The proposed amendments would be consistent with the General Plan and the following goals and policies contained in the Land Use and Housing Elements:
Land Use Element Implementation 2-2.5.A: Zoning Update.
Update Fremont’s zoning regulations, including the zoning map, to achieve consistency with the General Plan vision and Land Use Plan and shift toward a form-based approach to regulating development in City Center and the Town Centers. The update should reflect best practices in zoning, including the use of form-based codes, and should explore innovative and creative ways to achieve a more pedestrian-friendly and sustainable land use pattern.
At the same time, the update should also address zoning “fundamentals” such as definitions, allowable densities and floor area ratios, height and bulk controls, and the use of overlays to achieve place specific objectives.
Housing Element Goal 2: Help Current Residents Maintain Stable and Safe Housing in Fremont
Lower-income Fremont residents are at risk of displacement to a greater extent than lower - income residents in Alameda County overall. Displacement can have a range of negative effects at the individual, household, community, and regional levels. Often, individuals and households that are displaced must move further from their places of work, established childcare arrangements, and social support networks, while children in displaced households may experience a disruption in schooling. Widespread displacement often exacerbates inequalities in access to opportunity and patterns of segregation as lower-income households are increasingly excluded from higher-cost areas. In cities where residents have been displaced, these trends can have a negative impact on the economic, racial, ethnic, and social diversity of the local population. Goal 2 focuses on preserving the ability of Fremont residents to stay housed within the community.
Housing Element Goal 3: Promote Production of New Affordable and Market-Rate Housing
Fremont has adequate General Plan land use designations and zoning in place to meet the community’s RHNA targets. However, significant barriers exist to develop enough new housing, in particularly affordable housing, to meet the community’s needs. Goal 3 focuses on removing the barriers to the production of affordable and market rate housing in Fremont.
Council Staff Report (ID # 5030) Meeting of November 14, 2023 Updated: 11/8/2023 9:31 AM by Susan Gauthier Page 7
Housing Element Goal 4: Maximize Support and Resources for Affordable Housing Production
Construction of affordable housing generally requires large subsidies from Federal, State, County or local government sources in order to be financially feasible, yet there is not nearly enough funding available to subsidize all of the affordable housing needs in the region. The lack of available resources is a significant barrier to the production of affordable housing. Goal 4 focuses on maximizing resources, streamlining processes, and providing incentives to encourage the production of affordable housing.
Housing Element Goal 5: Address Disparities in Access to Housing and Disproportionate Housing Needs
Disparities in housing access and quality exists in Fremont, particularly among low -income people of color. Residents of color are more likely to experience homelessness, cost-burden, and overcrowding. Residents of color are also more likely to be renters than homeowners, which contributes to their disproportionate housing instability. Goal 5 focuses on meaningful actions to address the factors that detract from fair housing access within Fremont.
Housing Element Goal 6: Maintain a Compliant Housing Element and Zoning Ordinance
Goal 6 focuses on consistent evaluation of the effectiveness of Housing Element programs during the planning period, and adjusting/adapting to changes in state law, and economic conditions to stay on target with housing goals.
Policy 2.03: Prevent Direct Displacement from New Development Policy 3.01: Implement Clear Regulations and Standards that Reflect the Community’s Priorities.
Policy 3.03: Promote Housing Development in Highest Resource Neighborhoods.
Policy 3.04: Intensify Residential Development within Urban Neighborhoods.
Policy 4.01: Provide Zoning Incentives for Affordable Housing Production Policy 5.01: Expand Housing Opportunities for People with Disabilities Policy 5.02: Provide Services, Shelter, and a Pathway to Permanent Housing for Unhoused Residents
Policy 6.01: Maintain Consistency with Regional and State Housing Plans and Laws.
Analysis
The Housing Element is a mandatory element of the General Plan, and it includes State- approved policies and programs to increase housing opportunities in the city. California Government Code §65585(i) requires that the City implement all new housing laws, and noncompliance may result in the State revoking certification of the City’s 2023-2031 Housing Element. Programs 16, 17, 18, 32, 34, 36, 37, 44, 45, 46, 69, 74, 76, and 91 were included as Housing Element implementation actions to capture changes in State law not Council Staff Report (ID # 5030) Meeting of November 14, 2023 Updated: 11/8/2023 9:31 AM by Susan Gauthier Page 8
yet reflected in the City’s Planning and Zoning Ordinance. The purpose of this 2023 Code Update is to align the FMC with recently passed State legislation and to provide more clarity to the public, staff, and decision-makers when applying regulations to housing development projects and residential uses. Please see the Program Implementation – Analysis Matrix (Attachment D) for an overview of recent State legislation and a summary of the proposed amendments.
Staff has made a good faith effort to prepare the text amendments to be in complete compliance with State law; however, State legislation is complicated and nuanced, primarily because of the annual changes enacted by the Legislature. As such, many of the bills informing the proposed amendments are still being interpreted throughout the State. Future amendments and interpretations of the law are likely, which could result in the need to modify the proposed amendments or other areas of the FMC. Staff will monitor amendments and new interpretations of the law and bring forward any future amendments to City codes, as necessary.
Findings for Approval
In accordance with FMC Chapter 18.225, amendments to the Zoning Ordinance must be heard by both the Planning Commission and City Council. Pursuant to FMC §18.225.060, having received the recommendation of the Planning Commission, the City Council must make the findings specified in FMC §18.225.050 and provided below:
(1) The proposed amendment is consistent with the General Plan and, where the amendment is to the text of the General Plan, it is consistent with the other policies and chapters.
Analysis: The proposed amendments would be consistent with the General Plan Land Use Element because: 1) The proposed amendments would address zoning fundamentals by enhancing definitions, update the City’s land use regulations to achieve consistency with State law, and support compatible land uses; and 2) The proposed amendments would also help implement Programs 16, 17, 18, 32, 34, 36, 37, 44, 45, 46, 69, 74, 76, and 91 from the City’s 2023-2031 Housing Element, which is part of Fremont’s General Plan.
(2) The proposed amendment furthers the public interest, convenience, and general welfare of the city.
Analysis: The proposed amendments would further the public interest, convenience and general welfare of the city because: 1) The proposed amendments would implement the City’s Housing Element, which is part of the City’s General Plan; 2) The proposed amendments would ensure that the City’s planning and zoning regulations comply with State law; 3) The proposed amendments would provide for zoning district uses and development standards that are relevant to current development trends, objective, easy to use, flexible and equitable, and ensure the health and safety of Fremont residents; 4) Two-Unit Developments and Small-scale Multifamily are a form of “affordable by design” or “missing middle” housing, in that this form of housing is simpler and smaller than traditional single-family homes, that can help individuals more easily access job-rich, high-opportunity areas; and 5) Supportive and transitional housing, emergency shelters, and low-barrier navigation Council Staff Report (ID # 5030) Meeting of November 14, 2023 Updated: 11/8/2023 9:31 AM by Susan Gauthier Page 9
centers help people with disabilities and those experiencing homelessness receive immediate basic services, live independently in the community, and gain access to permanent housing
FISCAL IMPACT:
There are costs associated with implementation of many Housing Element programs. For those programs that are continued from the previous Housing Element, costs are already annually incorporated into the City’s operating budget and are funded from various sources, including the Community Planning Fee paid by building permit applicants; affordable housing funds; grant funds; and General Fund resources allocated to the Planning Division.
New programs in the Housing Element can also be largely accommodated from these sources. More importantly, having a certified Housing Element has a beneficial fiscal impact because it makes the City eligible for multiple State funding streams for purposes such as long-range planning, affordable housing, and public works/ transportation.
ENVIRONMENTAL REVIEW: The proposed text amendments are exempt from the requirements of the California Environmental Quality Act (CEQA), pursuant to, without limitation, each on a separate and independent basis, CEQA Guidelines:
1. §15061(b)(3) [Review for Exemption] in that it can be seen with certainty that there is no possibility that the proposed text amendments would have the potential for causing a significant effect on the environment, and because the proposed amendments would only modify certain zoning procedures to implement the City’s 2023-2031 Housing Element and would not approve any development.
2. §15183 [Projects Consistent with a Community Plan, General Plan, or Zoning] and/or §15162 [Subsequent EIRs and Negative Declarations] in that the proposed text amendments are consistent with the development densities and policies in Fremont’s General Plan, for which an Environmental Impact Report (EIR) [SCH #2010082060] was previously prepared and certified, and none of the circumstances necessitating further environmental review are present. The proposed amendments do not involve peculiar impacts that were not previously analyzed or discussed as significant effects in prior EIR(s) on the general plan and zoning with which the project is consistent, there are no previously identified significant effects which are substantially more severe than analyzed in in the prior EIR(s) or cannot be substantially mitigated by the imposition of uniformly applied development policies or standards applied on a citywide basis, and many of the proposed amendments are necessary to conform with state law. Any conceivable impact of the proposed amendments would be too speculative for reasoned analysis in the absence of specific development proposals.
3. §15262 [Feasibility and Planning Studies] in that the proposed amendments may lead to possible future actions, but the City has not yet approved, adopted, or funded those possible future actions.
4. §15268 [Ministerial Projects] in that the proposed amendments are necessary to implement the provisions of Government Code §§ 65852.21 and 66411.7 and are statutorily exempt from the requirements of CEQA.
5. §15305 [Minor Alterations in Land Use Limitations] in that proposed tex t amendments potentially initiate minor alterations in the City’s land use regulations, Council Staff Report (ID # 5030) Meeting of November 14, 2023 Updated: 11/8/2023 9:31 AM by Susan Gauthier Page 10
but that do not result in any changes in land use or density. Additionally, the proposed amendments include changing local City land use regulations as needed to comply with State law.
6. §15311 [Accessory Structures] in that proposed text amendments potentially initiate construction or conversion of small structures in a residential zone.
7. §15378 [Project] in that the proposed amendments are an organizational or administrative activity that will not result in direct or indirect physical changes in the environment.
ATTACHMENTS:
• Ordinance
• Resolution
• Exhibit A to Resolution
• Program Implementation - Analysis Matrix
• 2023-2031 Housing Element - Community Outreach
• Planning Commission Meeting - Draft Minutes
RECOMMENDATIONS:
1. Hold public hearing.
2. Find that the proposed text amendments to the Fremont Municipal Code (FMC) are exempt from the requirements of the California Environmental Quality Act (CEQA), each on a separate and independent basis, pursuant to CEQA Guidelines §15061 (Review for Exemption), §15183 (Projects Consistent with a Community Plan, General Plan, or Zoning), §15262 (Feasibility and Planning Studies), §15268 (Ministerial Projects), §15305 (Minor Alterations in Land Use Limitations), §15311 (Accessory Structures), and §15378 (Project).
3. Find that the proposed amendments are consistent with the General Plan.
4. Find that the proposed amendments further the public interest, convenience, and general welfare of the city by ensuring consistency between the FMC and the City’s General Plan with State law and provide for zoning district uses and development standards that are relevant to current development trends, easy to use, flexible and equitable, and ensure the health and safety of Fremont residents.
5. Introduce an ordinance approving amendments to FMC Title 17 (Subdivisions) and Title 18 (Planning and Zoning).
6. Adopt a Resolution implementing Program 17 of the City’s 2023-2031 Housing Element to revise the City’s adopted design guidelines and to identify Objective Design Standards for housing developments.
7. Direct Staff to document the above written findings and recommendation of the Planning Commission to the City Council and to prepare, and the City Clerk to publish, a summary of the ordinance.