CITY COUNCIL / PLANNING COMMISSION AGENDA
SPECIAL JOINT MEETING
CITY OF HALF MOON BAY
TUESDAY, MAY 9, 2023
HYBRID MEETING (SEE NEXT PAGE)
ADCOCK COMMUNITY CENTER
535 KELLY AVENUE
HALF MOON BAY, CA 94019
Deborah Penrose, Mayor
Joaquin Jimenez, Vice Mayor
Robert Brownstone, Councilmember
Harvey Rarback, Councilmember
Debbie Ruddock, Councilmember
Rick Hernandez, Chair
Margaret Gossett, Vice Chair
David Gorn, Commissioner
Hazel Joanes, Commissioner
Steve Ruddock, Commissioner
7:00 PM
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CALL TO ORDER / ROLL CALL
1. SPECIAL WORK SESSION: CITY COUNCIL AND PLANNING COMMISSION
1.A. WORK SESSION - FIRST PUBLIC DRAFT HOUSING ELEMENT
Staff Recommendation:
1. Hold a joint work session with the Planning Commission on the first public draft of the Cycle 6 Housing Element; consider community and Planning Commission input.
2. By motion, direct staff to prepare revisions to the draft Housing Element and submit it to the California Department of Housing and Community Development (HCD) for its 90-day review.
STAFF REPORT (SEE NEXT PAGE)
NOTE: The first public draft Housing Element is available on the City’s website (LINK), and hard copies for reference are available for viewing at City Hall and the Half Moon Bay Library.
ADJOURNMENT
BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY
AGENDA REPORT
For meeting of: May 9, 2023
TO: Honorable Mayor, City Council, and Planning Commissioners VIA: Matthew Chidester, City Manager
FROM: Jill Ekas, Community Development Director
Mike Noce, Housing Coordinator
TITLE: FIRST PUBLIC DRAFT HOUSING ELEMENT
JOINT COUNCIL AND PLANNING COMMISSION WORK SESSION
______________________________________________________________________________ RECOMMENDATION:
1. Hold a joint work session with the Planning Commission on the first public draft of the Cycle 6 Housing Element; consider community and Planning Commission input.
2. By motion, direct staff to prepare revisions to the draft Housing Element and submit it to the California Department of Housing and Community Development (HCD) for its 90- day review.
NOTE: The first public draft Housing Element is available on the City’s website (LINK), and hard copies for reference are available for viewing at City Hall and the Half Moon Bay Library.
FISCAL IMPACT:
There is no direct fiscal impact associated with this action.
STRATEGIC ELEMENT:
This action supports the Healthy Communities and Public Safety and Inclusive Governance Elements of the Strategic Plan.
BACKGROUND:
City staff are pleased to present the first public draft of half Moon Bay’s Cycle 6 Housing Element. The Cycle 6 Housing Element contains a pragmatic and bold approach to meeting the City’s housing needs within the challenging context of the coastal zone.
The Housing Element is one of the seven required general plan elements mandated by California state law. Each city and county must adopt a housing element that conforms to the detailed statutory requirements established in Article 10.6 (Sections 65580 to 65589.8) of the Government Code. Half Moon Bay’s Housing Element must be updated every eight years.
According to State law, all housing elements must identify and analyze existing and projected
housing needs; affirm goals and policies; establish quantified objectives; identify financial and other resources; and provide scheduled programs for the preservation, improvement, and development of housing.
The Housing Element must identify adequate sites to meet the City’s Regional Housing Needs Allocation (RHNA) in a manner that best addresses housing needs in each jurisdiction. For Half Moon Bay this includes a diverse array of housing options for all income levels, including both rental and ownership units; housing for large and multigenerational households as well as for small households and seniors; and factory-built units, mobile homes, and emergency housing.
Locating housing near transit, services, and other resources is also key to providing housing that truly meets the needs of residents, sometimes referred to as “missing middle” housing. To that end, the Housing Element includes a detailed inventory and analysis of likely-to-develop sites to meet existing and projected needs and preferences of all economic segments of the community. The City’s Regional Housing Needs Obligation (RHNA) for the current Cycle 6 is 480 units, which is twice the Cycle 5 RHNA of 240 units. The Cycle 6 RHNA is divided amongst income categories as follows:
RHNA
Income Category
Very Low Low Moderate Above Moderate Total
181 104 54 141 480
To ensure compliance, each housing element is submitted to the California Department of Housing and Community Development (HCD) for mandatory review and certification. The Cycle 6 Housing Element will be in effect for an eight-year period from 2023 – 2031 and will fully replace the Cycle 5 Housing Element (2015 – 2022).
The Housing Element is laid out as follows:
Introduction and Executive Summary: Provides context setting and an overview of the entire Housing Element document.
Housing Plan: This is the actionable portion of the Housing Element with goals, policies, and programs.
Technical Report Appendices:
o Housing Needs (Appendix A): This report presents population and housing stock demographics to help identify housing needs.
o Constraints (Appendix B): This technical background report is wholly revised from the previous Housing Element in a manner consistent with the recently updated Local Coastal Land Use Plan. It tells a fresh story about the City’s ability to address its housing obligations in the Coastal Zone.
o Housing Resources (Appendix C): This report includes the Housing Sites Inventory; all of which have been presented to the City Council and the Planning Commission on numerous occasions.
o Affirmatively Furthering Fair Housing (AFFH) (appendix D): This is a new Housing Element requirement providing very important context about the history of housing
discrimination in the Bay Area, including impacts related to access to job opportunities, access to quality education, and influences to mental and physical health.
o Community Engagement (Appendix E): This report was previously presented to the Planning Commission in draft form in July 2022 to provide an overview of public outreach efforts.
o Housing Element Previous Accomplishments (Appendix F): This report is highly relevant to the Housing Plan and indicates how and why the City was successful, or not, for various programs in the Cycle 5 Housing Element. Glossary of Terms and Acronyms
Local jurisdictions are required to demonstrate that community input on the Public Draft Housing Element is incorporated into the revised draft that will be submitted to HCD. For the Joint Work Session, the City Council and Planning Commission are encouraged to consider public input as they make recommendations for improving the Housing Element. The Commission’s role is to advise Council and staff; and Council’s action will be to direct staff regarding needed modifications or follow up matters for the First Public Draft Housing Element before it is submitted to HCD.
DISCUSSION:
The Cycle 6 Housing Element represents a significant evolution in the City’s approach to addressing local housing needs via two primary approaches:
1. Land Use Policy: For land use, the recent comprehensive update to the Local Coastal Land Use Plan provided the foundation for the housing sites inventory. This update anticipated the Cycle 6 Housing Element by delineating a Town Center boundary within which most new development is to be focused and through new land use designations enabling development of diverse housing types affordable to a wide range of Coastside households.
2. Supportive Programs: Supportive programs build on the City Council’s recent work in approving Affordable Housing Fund Allocation Guidelines, putting in place Residential Renter Security Measures, seeking an affordable housing developer for City-owned land at 555 Kelly Avenue, and establishing a Short-Term Vacation Rental Ordinance meant to preserve housing inventory.
The remainder of this report presents highlights from the housing sites inventory and updated goals, policies, and programs. This report is not intended to present information duplicative of the Housing Element’s Introduction and Executive Summary which interested readers are strongly encouraged review. The Housing Plan and Technical Report Appendix B – Constraints
are also priority reading for understanding the context and strategic intent of the Housing Element’s programs.
Housing Sites Inventory:
The housing sites inventory includes pipeline projects, housing opportunity sites, and accessory dwelling units (ADUs). The full site inventory is presented in detail in the Technical Report Appendix C – Housing Resources. Pipeline projects are those where permit activity is already occurring. Housing opportunity sites are those vacant or underdeveloped properties with the most likelihood of developing during Cycle 6 and that are well-supported by City policy to be developed.
Pipeline Projects Highlights:
Numerous residential development projects – including single-family homes, mobile homes, and units in mixed-use development – are at various stages of the permit process referred to as the “pipeline.” These three projects are particularly notable:
555 Kelly Avenue: This City-owned site is now an active project following a request for qualification (RFQ) process whereby the City has entered into an agreement with Mercy housing to develop plans for 40 units affordable to very low income, older farmworkers. Hilltop Mobile Home Park: The City is currently reviewing an application for a 32-unit expansion of the Hilltop Mobile Home Park on the north side of Highway 92. These 32 units are included in the pipeline projects inventory.
Podesta Planned Development: The City completed preliminary review of a conceptual plan for 250 units on this site. As a pipeline project relative to RHNA, staff assumed that the site would build out with 40 affordable units as were included in the preliminary application but with a lower overall buildout of 167 units based on site constraints. Staff will evaluate mechanisms that may allow for an increased percentage of affordable units on this site.
Housing Opportunity Sites Highlights:
The housing opportunity sites are predominantly located within the Town Center or are associated with the new Workforce Housing Overlay land use designation established in the Local Coastal Land Use Plan update. These two sites are of special note at the onset of Cycle 6:
880 Stone Pine Road: This City-owned site holds the Public Works corporation yard and a conservation corridor. The City does not own many vacant sites, and very few are appropriate for housing development due primarily to environmental constraints. As the corporation yard improvement project was in development and an approach to resource conservation could be established for special status species, City Council identified that the remaining undeveloped portion of the site was a priority for affordable housing development and directed staff to study options and feasibility. The site is now a focus for potential near-term development of an affordable manufactured home neighborhood with emphasis on farmworkers. Community engagement is
underway to explore best ways to move this forward relative to neighborhood concerns, funding opportunities, and emergency housing needs.
Hatch Elementary School Site: Cabrillo Unified School District (CUSD) has been studying school properties for faculty and staff housing. Hatch School has risen to the top of options within the City limits and the District has concept plans for 60 units. These are included in the housing opportunity sites inventory and staff are working with CUSD and its consultants to move this project forward.
Accessory Dwelling Units (ADUs):
HCD is allowing ADUs to be counted in sites inventory. The City is proposing using the threeyear average of 14 ADUs per year from 2019 – 2021 for the eight-year Cycle 6 for a total of 112 ADUs. Affordability assumptions for ADUs are tied to County survey data.
Buffer:
The Housing Element’s sites inventory includes those that could support development of more units at each affordability level than the RHNA. This is referred to as a “buffer.” Staff’s understanding is that HCD is requiring buffers of at least 20%. The buffer provided in the first draft Housing Element site inventory is higher than 20%. It is likely that HCD’s review will impact the sites inventory and that the buffer will be somewhat reduced for the second draft. It is important to understand that having a buffer does not mean all of the sites, beyond RHNA, will develop during Cycle 6. The buffer is meant to increase the likelihood that RHNA is produced. Furthermore, while Measure D has capacity for RHNA, it does support RHNA with the entire buffer as currently presented. Thus, there are numerous factors that will moderate this buildout.
Site Summary: RHNA and the housing sites inventory with buffer are summarized in the following table:
RHNA
Income Category
Very Low Low Moderate Above Moderate Total
181 104 54 141 480
Total Units 251 159 133 239 782
Pipeline 62 25 70 185 342
ADUs 34 34 34 10 112
Housing
Opportunity
Sites
155 100 29 44 328
Surplus Units 70 55 79 98 302
Buffer 39% 53% 146% 70%
Goals, Policies, and Programs:
Housing Element goals and policies provide the foundation for implementation programs to achieve RHNA with respect to housing production, as well as other community needs through a wide range of supportive policies. The Cycle 6 Housing Element update reorganizes the goals and polices from Cycle 5 with updates. The key areas for the evolution of the Housing Element are through its programs. The Cycle 5 Housing Element included 26 programs. The Cycle 6 Housing Element is broader and includes 44 programs. Many programs from Cycle 5 were revised, or in some cases wholly replaced with new programs.
Housing Element goals focus on production of new affordable housing, preservation of existing affordable housing and protection of lower income community members, as well as families and households with special needs.
Three new Housing Plan programs of note include the following:
• Program 2-4 Mobile Home Park Affordability Protection: This is a new program that would establish rent stabilization measures for mobile home parks. The program addresses rent increases for the pad spaces and could potentially be applied to rental of mobile homes for cases where tenants do not own the coach. Mobile homes comprise about 10% of the City’s housing stock and are much more affordable than single-family homes.
• Program 3-6 Childcare: This is a new program that encourages inclusion of childcare in larger affordable housing developments. Along with health care and transportation costs, childcare is critical for developing housing stability over time. • Program 4-5 Tenant Relocation Assistance Ordinance: This new program would lead to the development of an ordinance requiring property owners to provide relocation assistance to tenants in the case that they are renting housing units with serious code violations.
The following table lists the Cycle 6 programs with cross references to the most relevant Cycle 5 Programs by number. The Cycle 5 Programs can be found in Technical Report Appendix F- Cycle 5 Housing Element Previous Accomplishments. If Cycle 5 did not include a similar program, the reference is noted as “N/A.”
Cycle 6 Program Cycle 5 Program
Goal 1: Housing Production
1-1. Provision of Adequate Sites 2-5
1-2. Missing Middle Housing Development Standards 3-8, 3-9 1-3. Below Market Rate Housing Ordinance 2-1
1-4. Residential Density Bonus Ordinance 2-2
1-5. Accessory Dwelling Units 2-3
1-6. Small Lot Development 2-4
1-7. Diverse Housing Types 2-11
1-8. SB-9 Lot Splits N/A
Goal 2: Housing Preservation
2-1. Housing Rehabilitation 1-1
2-2. Preservation of Affordable At-Risk Units 1-3
2-3. Replacement Unit Requirements N/A
2-4. Mobile Home Park Affordability Requirements 1-2
2-5. Short-Term Vacation Rental Monitoring N/A
Goal 3: Housing Choices
3-1. Senior and Disabled Housing 3-2
3-2. Special Needs Housing Coordination and Referrals 3-3 3-3. Home Sharing and Cooperative Housing 3-4
3-4. Housing for Essential Workers N/A
3-5. Large and Multi-Generational Households 3-5
3-6. Childcare N/A
3-7. Emergency Shelters, Transitional Housing, Supportive Housing, and Low Barrier Navigation Centers
3-6
3-8. Emergency Housing Demand 3-7
Goal 4: Protections and Resources
4-1. Equal Housing Opportunity 4-1
4-2. Nondiscrimination Clauses 4-2
4-3. Multilingual Housing Information Access N/A
4-4. Residential Renter Security Measures Ordinance N/A 4-5. Tenant Relocation Assistance Ordinance N/A
4-6. Increased funding for Affordable Housing 2-8
4-7. Affordable Housing Fund Management and Use 2-7
4-8. Use Public and Quasi-Public Owned Lands for Affordable Housing N/A 4-9. Reduce Affordable Housing Development Costs N/A
Goal 5: Housing Sustainability
5-1. Energy Conservation and Efficiency 5-1
5-2. Water Conservation 5-1
5-3. Low VMT Development N/A
5-4. Stormwater Management and Low-Impact Design N/A
5-5. Hazard Avoidance and Environmental Protection N/A
Goal 6: Housing Plan Implementation
6-1. Housing Element Annual Progress Report 2-9
6-2. Affordable Housing Portfolio Management N/A
6-3. Rental Registry N/A
6-4. Removal of Constraints 3-1
6-5. Priority Water Connections for Affordable Housing N/A 6-6. Work with Non-Profits and Regional Partners N/A
6-7. Increase Capacity for Housing Program Management N/A 6-8. Annual Review of Residential Swelling Unit Allocation System 2-10
6-9. Consistency in Planning Documents 2-6
Notification and Availability
The first public draft Housing Element was published on April 17, 2023. It is posted on the City’s website and hard copies are available at City Hall and the Half Moon Bay Library. Notification included all of the following:
• City email lists: City Council, Planning Commission, Housing Element Update, and other email lists, totaling over 4,000 email addresses which include individuals and organizations that have expressed interest in the City’s Housing Element and policy. • City eNews.
• Half Moon Bay Review display ad.
• Nextdoor, Facebook, Instagram, Twitter, and Coastside Buzz. • Announcements at City Council and Planning Commission meetings.
Next Steps
The first public draft Housing Element is currently within a required 30-day public review period: April 17 – May 16, 2023. The Joint Work Session is occurring during the 30-day public review period to encourage more input and to allow an opportunity for the public to inform Council and Commission’s review of the Housing Element before it is considered at public hearings in future months. After the 30-day public review period, staff have 10 working days to revise the draft Housing Element according to this process and then submit it for formal review by the HCD. HCD has 90 days to complete its review of the first draft.
City staff expect to receive a letter from HCD following its review outlining matters that need to be explained, revised, or otherwise better addressed in the Housing Element. This is a standard part of the process. Once the City receives the results of the first review, staff will update City Council about next steps, which will most likely include revising the Housing Element and moving it to the public hearing process before the Planning Commission and City Council.
Housing Elements are not within the California Coastal Commission’s purview; and thus, Council’s action will conclude the adoption process. From there, the Housing Element will again be submitted to HCD for subsequent review. Staff’s hope is that a second review will result in few, if any remaining unresolved matters.
In parallel with HCD’s review of the first draft Housing Element, environmental review pursuant to the California Environmental Quality Act (CEQA) is being completed. This review pertains mostly to the environmental impacts associated with development of the housing sites inventory.
COMMISSIONER JOANES COMMENTS – RECEIVED 05/08/23
General Comments
1. The Housing Element presents a comprehensive Housing Plan to address iden�fied housing needs for the years 2023-2031. The document cover does not represent imagery reflec�ng the content of the document. Imagery or graphics depic�ng the diverse array of housing op�ons that the City of Half Moon Bay envisions through the stated goals of its proposed Housing Plan would beter communicate to readers what to expect in the document.
2. Since this document is the first public review dra�, I an�cipate that City Staff will proofread the final document carefully and correct typos, gramma�cal mistakes, and other wri�ng issues before publica�on for submission to HCD. Check that all superscripts in the text are footnoted. Change “courtsiders” to “Coastsiders”, and “Cit” to” City”.
3. The document uses the terms “unhoused” and “homeless” and “unsheltered”, do these terms mean the same?
Introduc�on & Summary
4. The first paragraph of the “purpose” sec�on on page 1 of the Introduc�on and Execu�ve Summary is general, broad, and obscure. The meaning of “just housing” has numerous connota�ons that can be nega�ve, posi�ve or neutral. The statements in this paragraph appear to be a string of thoughts that do not communicate a clear expecta�on of what the reader will learn in the document. Could the purpose of the Housing Element simply state that it is to sa�sfy the statutory requirements of Ar�cle
10.6 of the Government Codes through the establishment of specific policies and implementa�on of programs that will lead the City in achieving measurable outcomes by embracing the Coastal Act, addressing the housing needs requested by the City’s ci�zenry and responding to the broader regional affordable housing needs?
5. Goal 6 was introduced in Cycle 6 Housing Plan. The discussion at the botom of Page 4 of the Introduc�on and Execu�ve Summary gives the impression that Goal 6 is not important because it cannot be measured in quan�fiable terms. Is there another way of sta�ng that Goal 6 is crucial to monitor the progress towards Goals 1-5? Housing Plan
6. Policy 1-C: Single-room Occupancy (SRO)- What City-specific data supports the need for SRO type of housing?
7. Policy 1-E: Will incen�ves be afforded for lots located in R-1 districts?
8. Program 1-1:
a. What address is site 11 in the Town Center? (Note: Page H-16 Iden�fies site 11 as 940 Church Street, but Appendix C iden�fies site 11 as 940 Main Street) b. WHO is unmapped – will the final version of the Housing element include the WHO map?
9. Program 1-2: Middle Housing Development Standards
a. Will parking restric�ons be applied solely to C-G, C-R, R-3, and R-2 zoning districts?
b. Will reduced parking for substandard lots be applied to the R-1 Zoning District?
10. Program 1-5: Accessory Dwelling Units (ADUs)
a. Could this program rela�ve to the Sec�on 8 condi�on be expanded to include exis�ng ADUs?
b. There are many owners who own their primary residences elsewhere - has the City considered a program to establish incen�ves for absentee homeowners to enter into Sec�on 8 housing agreements for their houses that are vacant?
11. Program 1-6: Small Lot Development
a. Will reduced parking for substandard lots be applied to the R-1 Zoning District if the proper�es are offered at BMR?
12. Program 1-7: Diverse Housing Types
a. What City-specific data supports the need for SRO’s, �ny houses with movable founda�ons, and living environments with shared kitchens and common spaces i. Are living environments with shared Kitchens and common spaces similar to communal living spaces such as cohousing communi�es, dormitorystyle housing, facili�es typical of nursing facili�es, and fraternity/sorority houses?
13. Program 1-8: SB 9 Lot Splits
a. Would standard lots in R-1 Zoning District be eligible under SB 9? b. Provided that lot splits could be made consistent with the Cer�fied LCP, could a standard lot that currently has a house built on it be split to build a second BMR house? Or to create a mul�genera�onal housing compound?
14. Program 2-2: Preserva�on of Affordable Housing
a. Are there examples that demonstrate how nego�a�ng protec�ons such as “first right of refusal”?
15. Program 2-3: Replacement of Unit Requirements- Government Code 65195 (c) (3) appears to be linked to density bonus and or demoli�on of proper�es. Explain and provide examples that demonstrate the meaning of this program.
16. Program 2-4: Mobile Home Park Affordability Protec�ons. a. Is this program to protect against the conversion of land use designa�on to other uses and to implement rent stabiliza�on (controlling the rent for the lease of space within the mobile home?)
17. Program 3-4: Housing for Essen�al Workers
a. Does the City have a defini�on for what types of employees cons�tute essen�al workers?
b. Explain the third bullet under this program. Would “including by tenure” mean that a tenant who has seniority (long-standing lease) be given the opportunity to purchase their unit?
18. Program 3-5: Large Mul�-Genera�onal Households
a. Second bullet- would this program be used in R-1-Zoning Districts?
19. Program 3-6: Childcare
a. What about childcare will the City encourage? Child care facility within a development site? Housing for childcare staff?
b. Could a similar program be available for “eldercare” at 555 Kelly?
20. Programs4-7: Affordable Housing Fund Management and Use a. What is the meaning of “deep” affordability level
b. What is the an�cipated date during Cycle 6 will this objec�ve be achieved?
21. Program 4-8: Use of Public And Quasi- Public-Owned Land for Affordable Housing a. Which category of the workforce will be eligible for 880 Stone Pine? b. What is the an�cipated date during Cycle 6 will this objec�ve be achieved?
22. Program 6-6: Work with Non-Profits and Regional Partners a. Has the City encountered en��es that are not suppor�ve of the City’s Housing Plan goals? If there are such en��es, should the City try to build a collabora�on with those en��es to reach a consensus on the Housing Plan goals? b. What is the an�cipated date during Cycle 6 will this objec�ve be achieved?
23. Program 6-7: Increase Capacity of Housing Program Management a. This objec�ve, as worded, could appear to be a request by City staff to increase the City’s workforce and consultant budget. While the success of the Housing Plan will need to be ac�vely administered by either staff and/or consultants the �tle of this program obscures the importance of needing addi�onal staffing resources especially as it relates to ac�vely enforcing fair housing, inves�ga�ng complaints, and conduc�ng outreach efforts. If addi�onal City resources will be necessary, consider renaming the program to emphasize the need for resources to specifically state: “Increase City Staff and Consultant resources to implement the Housing Plan Goals and Objec�ves.”