Half Moon Bay City Council
August 7, 2024

CITY COUNCIL AGENDA

SPECIAL MEETING

CITY OF HALF MOON BAY
WEDNESDAY, AUGUST 7, 2024

ADCOCK COMMUNITY CENTER
535 KELLY AVENUE
HALF MOON BAY, CA 94019
Joaquin Jimenez, Mayor
Harvey Rarback, Vice Mayor
Robert Brownstone, Councilmember
Deborah Penrose, Councilmember
Debbie Ruddock, Councilmember
6:00 PM
This agenda contains a brief description of each item to be considered. Those wishing to address the City Council on any matter not listed on the agenda, but within the jurisdiction of the City Council to resolve, may come forward to the podium during the Public Forum portion of the agenda and will have a maximum of three minutes to discuss their item.

Comments on City Manager Updates and Consent Calendar items should be made during the Public Forum section of the agenda. Those wishing to speak on a Business or Public Hearing matter will be called forward at the appropriate time during that item’s consideration.

Please Note: Anyone wishing to present materials to the City Council, please submit seven copies to the City Clerk.

Copies of written documentation relating to each item of business on the agenda are on file in the Office of the City Clerk at City Hall where they are available for public inspection. If requested, the agenda shall be available in appropriate alternative formats to persons with a disability, as required by Section 202 of the Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12132.) Information may be obtained by calling 650-726-8271.

In compliance with the Americans with Disabilities Act, special assistance for participation in this meeting can be obtained by contacting the City Clerk’s Office at 650-726-8271. A 48-hour notification will enable the City to make reasonable accommodations to ensure accessibility to this meeting (28 CFR 35.102-35.104 ADA Title II).

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HYBRID MEETING PARTICIPATION PROTOCOLS
This meeting will be held in-person and via Zoom for public participation. Remote participation is provided as a supplemental way to provide public comment, but this method does not always work. The public is encouraged to attend in person to ensure full participation. Public comments may be made in-person or remotely via Zoom, and interpretation will be available. All Councilmembers and staff will participate in person. During any public comment portions, attendees may use the “raise your hand” feature and will be called upon and unmuted when it is their turn to speak. The meeting will also be streamed on Channel 27, on pacificcoast.tv, and on Facebook at www.facebook.com/cityofhalfmoonbay. Please click to join the webinar: https://us06web.zoom.us/j/87674804231 or join by phone at 669-900-9128, using Webinar ID 876-7480- 4231. If joining by phone, use *9 to raise your hand, *6 to mute and unmute.

CONVENE SPECIAL MEETING

ROLL CALL / PLEDGE OF ALLEGIANCE

REPORT OUT FROM RECENT CLOSED SESSION MEETINGS

1. CONSENT CALENDAR

1.A. AMENDMENT 8 TO PROFESSIONAL SERVICES AGREEMENT WITH CIRCLEPOINT FOR

PREPARATION OF AN ENVIRONMENTAL IMPACT REPORT
Staff Recommendation: Adopt a resolution authorizing the City Manager to execute Amendment 8 to the professional services agreement with Circlepoint for the preparation of an environmental impact report for the proposed Hyatt Place Hotel at a cost of $442,524.

2. RESOLUTIONS AND STAFF REPORTS

2.A. UPDATE ON A PETITION FOR REFERENDUM RELATED TO THE 555 KELLY SENIOR

FARMWORKER AFFORDABLE HOUSING PROJECT
Staff Recommendation: Receive an update on a petition seeking “Referendum Against an Ordinance Passed by the City Council”, related to the 555 Kelly Affordable Housing Project, which was submitted to the City on August 1, 2024.

2.B. SECOND HCD DRAFT HOUSING ELEMENT
Staff Recommendation: 1) Acknowledge receipt of recommendations from the Planning Commission included in this staff report; and 2) direct staff to include any recommended revisions made by the City Council and direct staff, by resolution, to submit the “2023-2031 Housing Element, Second HCD Draft, July 30, 2024” (Second Draft) to the California Department of Housing and Community Development (HCD).

ADJOURN SPECIAL MEETING

BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY

AGENDA REPORT
For meeting of: August 7, 2024
TO: Honorable Mayor and City Council
VIA: Matthew Chidester, City Manager
FROM: Steve McHarris, Interim Community Development Director TITLE: AMENDMENT 8 TO PROFESSIONAL SERVICES AGREEMENT WITH CIRCLEPOINT

FOR PREPARATION OF AN ENVIRONMENTAL IMPACT REPORT
______________________________________________________________________________ RECOMMENDATION:

Adopt a resolution authorizing the City Manager to execute Amendment 8 to the professional services agreement with Circlepoint (www.circlepoint.com) for the preparation of an environmental impact report for the proposed Hyatt Place Hotel at a cost of $442,524.

FISCAL IMPACT:

The project applicant is required to deposit funds to cover the cost of the environmental impact report (EIR) consultant contract and City project management costs.

BACKGROUND:

On April 18, 2017, the City Council approved a professional services agreement with Circlepoint for preparation of an EIR in conformance with the California Environmental Quality Act (CEQA) for the proposed Hyatt Place hotel project. Circlepoint was selected following an open solicitation with a Request for Proposals (RFP).

The original consultant contract was for $186,854. Amendment 1 was approved by City Council in June 2019 for an additional $46,240 and a total budget of $233,094. Amendment 2 was approved by the City Manager in May 2020 for an additional amount of $15,545 under his ten percent contingency authority. The second amendment increased the contract amount to $248,639. Amendment 3 would have exceeded the contingency and was approved by City Council on May 4, 2021, and brought the contract total to $299,244. Two subsequent amendments were approved by the City Manager, again, under his authority to approve use of the ten percent contingency. These were in the amounts of $7,625 for Amendment 4 and $11,150 for Amendment 5. Amendment 6 would have exceeded the contingency and was approved by City Council on November 15, 2022, and brought the contract total to $383,484. A subsequent amendment was approved by the City Manager under his authority to approve use of the ten percent contingency in the amount of $38,348 for Amendment 7. The total budget with Amendment 7 is $437.074. Additional funds are now needed to complete the Final EIR.

DISCUSSION:

As previously reported to the City Council, the project has undergone a series of significant revisions and several pauses in processing, including changes in the project design team. City Council approved Amendment 3, and the two modest subsequent amendments that were covered by the contingency (Amendments 4 and 5), were approved to update the Draft EIR to incorporate these changes in project scope, including the introduction of Alternative 2, a reduced sized hotel project (102 rooms instead of 129) that incorporated additional land area including an expansion of the existing auto dealership to the south, and replacing the dealership new vehicle inventory on the north side of Seymour Street with future residential development. That changed the project description requiring additional consultant analysis.

The combination of project delays and changes resulted in additional CEQA requirements such as vehicle miles traveled (VMT) analysis. VMT was not a CEQA standard when the project was initiated.

The Draft EIR was completed and circulated for 60 days from July 15 – September 13, 2022. A Planning Commission hearing was held during the circulation period on August 9, 2022.

Comments on the Draft EIR were extensive. Addressing them required more effort than initially anticipated or than is typical for a Draft EIR. One hundred and five comment letters, including over 500 comments, in addition to public hearing comments and public engagement input and an outreach meeting with Main Street Park during the circulation period must be responded to in the Final EIR. For Amendment 7, Circlepoint’s scope added two public hearings and support from the transportation subconsultant, W-Trans. Circlepoint’s schedule allows for ongoing coordination with City staff and would have brought the Final EIR forward into public review in March 2023. However, project delays required some additional analysis and comprehensive consistency checks which extended the Final EIR release and Planning Commission Public Hearing Notice to August 2, 2024 and exhausted the budget.

Amendment 8 providesthe final costs for the consultants to attend up to two hearings. Hearings will be attended by Circlepoint management staff, as well as by the subconsultants W-Trans, and FastCast to support transportation and visual simulation questions respectively is for $20,450. and would bring the total to $442,524. The applicant is prepared to cover these additional project costs.

ATTACHMENT:

Resolution for Amendment 8 to Professional Services Agreement with Circlepoint Resolution No. C-2024-____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HALF MOON BAY AUTHORIZING THE CITY MANAGER TO EXECUTE AMENDMENT 8 TO PROFESSIONAL SERVICES AGREEMENT

WITH CIRCLEPOINT FOR PREPARATION OF AN ENVIRONMENTAL IMPACT REPORT FOR THE HYATT PLACE PROPOSAL AT SOUTH MAIN STREET AND HIGHWAY 1 (PDP-13-072) WHEREAS, the City received an application for a new hotel project proposal for a vacant site at South Main Street along Highway 1 and determined that an environmental impact report would be required; and
WHEREAS, in 2017, the City issued a request for proposals (RFP) for preparation of an environmental impact report for the Hyatt House Proposal; and WHEREAS, following review of all ten submittals, the City has received proposals from ten consulting firms in response to the RFP; and
WHEREAS, the proposed scope of work submitted by Circlepoint, a Bay Area firm providing of environmental consulting services, was determined to be the most responsive to the RFP;
WHEREAS, City Council approved a professional services agreement for preparation of an environmental impact report for the proposed Hyatt Place project on April 18, 2017 in the amount of $186,854; and
WHEREAS, the proposed project description, design and programming have been revised several times since the environmental review work was initiated; and WHEREAS, the California Environmental Quality Act (CEQA) guidelines were updated effective January 1, 2019 and include revised and new impact thresholds which require additional environmental analysis; and
WHEREAS, the City Engineer and Community Development Director have determined that the traffic study as originally scoped requires additional analysis; and WHEREAS, Amendment 1 to the contract was approved by City Council and Amendment 2 was approved by the City Manager as part of the contingency, Amendment 3 and 6 was approved by City Council, and Amendments 4, 5, and 7 were approved by the City Manager as part of the contingency; and
WHEREAS, subsequently the applicant has brought forward a new project alternative with a new mix of land uses and project site area requiring additional CEQA analysis; and WHEREAS, a high volume of comments, including over 100 letters and over 500 individual comments, were submitted on the Draft EIR that need to be addressed in the Final EIR; and
WHEREAS, additional analysis and comprehensive consistency checks were required to organize and complete the Final EIR document which exhausted the contracted budget and requires remaining contract consultation services for public hearing purposes.

NOW, THEREFORE, BE IT RESOLVED THAT the City Council of the City of Half Moon Bay authorizes the City Manager to execute Amendment 8 to the professional services agreement with Circlepoint for additional scope with an additional budget of $20,450 for professional consulting services for completion of the environmental impact report and public hearing presentation for the proposed Hyatt Place hotel project for a total not to exceed $442,524 with an expiration of December 31, 2024.
***************************************************************** I, the undersigned, hereby certify that the foregoing Resolution was duly passed and adopted on the 7th day of August 2024 by the City Council of Half Moon Bay by the following vote:

AYES, Councilmembers:

NOES, Councilmembers:

ABSENT, Councilmembers:

ABSTAIN, Councilmembers:

ATTEST: APPROVED:
___________________________ _____________________________ Jessica Blair, City Clerk Joaquin Jimenez, Mayor

BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY

AGENDA REPORT
For meeting of: August 7, 2024
TO: Honorable Mayor and City Council
VIA: Matthew Chidester, City Manager
FROM: Jessica Blair, Communications Director/City Clerk Catherine Engberg, City Attorney
TITLE: UPDATE ON A PETITION FOR REFERENDUM RELATED TO THE 555 KELLY SENIOR

FARMWORKER AFFORDABLE HOUSING PROJECT
______________________________________________________________________________ RECOMMENDATION:

Receive an update on a petition seeking “Referendum Against an Ordinance Passed by the City Council”, related to the 555 Kelly Affordable Housing Project, which was submitted to the City on August 1, 2024.

FISCAL IMPACT:

There is no fiscal impact associated with this item.

STRATEGIC ELEMENT:

This action supports the Healthy Communities and Public Safety, Inclusive Governance, and Infrastructure and Environment Elements of the Strategic Plan.

BACKGROUND:

On June 26, 2024, the City Council, by resolution, denied appeals of the May 14, 2024, Planning Commission approval of the Coastal Development Permit and Architectural Review of the 555 Kelly Avenue Affordable Housing Development project, which would provide 40 units of senior and retired farmworker housing in a five-story building to be developed on City-owned land located at 555 Kelly Avenue, in Half Moon Bay.

Following denial of the appeals, a group of individuals referring to themselves as the “Let HMB Voters Decide Committee” collected signatures and submitted a petition to the City seeking a referendum of the decision, presumably with the goal of placing the item on the November 5, 2024, general election ballot.

After the initial count of the signatures by City staff, the City provided a letter (Attachment 1) to the proponents indicating that the referendum could not be processed by the City because the City Council’s action was not legislative in nature and not subject to referendum under State law.

Notably, the petition references rescinding an “Ordinance” where no ordinance was introduced or adopted, nor did the Council take legislative action at the June 26 appeal hearing. The proponents provided a response to the City (Attachment 2), further clarifying their position and requesting an item be agendized at the August 7 special meeting of the City Council.

DISCUSSION:

At the August 7, 2024, City Council meeting, staff will provide an informational update on the referendum process in general and as applied to the 555 Kelly affordable housing project. There will also be an opportunity for public comment on the item as well as Council discussion.

ATTACHMENTS:

1. City letter rejecting the referendum petition dated August 1, 2024

2. Let HMB Voters Decide Committee letter to City dated August 5, 2024

To: Maggie Rodriguez and Jessica Blair
City of Half Moon Bay Elections Officials
August 5, 2024
Dear Ms. Rodrigues and Ms. Blair,
On behalf of the Let HMB Voters Decide Committee, I have received your letter affirming receipt of our referendum petition containing the signatures of well in excess of 10% of the City's electorate, but rejecting the referendum petition "after consulting with the City Attorney's Office." We do not agree, and we are aware that members of the City's own Planning Commission also do not agree.

Under Elections Code section 9145, in response to a duly qualified referendum measure, Respondents have a ministerial duty to either repeal the challenged ordinance or submit it to a public vote:

If the legislative body does not entirely repeal the ordinance against which the petition is filed, the legislative body shall submit the ordinance to the voters, either at the next regular municipal election occurring not less than 88 days after the order of the legislative body, or at a special election called for the purpose, not less than 88 days after the order of the legislative body. The ordinance shall not become effective until a majority of the voters voting on the ordinance vote in favor of it. (Elec. Code, § 9241 (emphasis added).)
There is no “third option” of refusing to take any action.

The California Constitution guarantees the right of the people to exercise repeal legislative enactments by referendum. (Cal. Const., art. II, §§ 9, 11.) The right of the people to utilize their initiative and referendum power, as reflected in the California Constitution, is one of the most precious rights of our democratic process. (Pala Band of Mission Indians v. Board of Supervisors of San Diego (1997) 54 Cal.App.4th 565, 574 citing Mervynne v. Acker (1961) 189 Cal.App.2d 558, 563.) California courts have long recognized the fundamental right of voter-initiated ballot measures:

The state constitutional right of initiative or referendum is 'one of the most precious rights of our democratic process.' These powers are reserved to the people, not granted to them. Thus, it is our duty to 'jealously guard' these powers and construe the relevant constitutional provisions liberally in favor of the people's right to exercise the powers of initiative and referendum.
(Pala Band of Mission Indians v. Board of Supervisors, supra, 54 Cal.App.4th 565, 573-74 (citations and internal quotations omitted).)
Referenda are one of very few options available to private citizens to protest government legislative action. For this very reason, the role of the government in the referendum petitioning process is limited to purely ministerial functions, including those found in section 9241. Despite these explicit, mandatory instructions, your office has refused to “entirely repeal the ordinance against which a petition is filed [or] ... submit the ordinance to the voters....” (Elec. Code, § 9241.) Instead, your office is denying voters their say on this important issue.

In this regard, it is incontrovertible that refusal to perform a ministerial duty is generally an inappropriate means to challenge the constitutionality of an initiative or statute. (See, e.g., Lockyer v. City and County of San Francisco (2004) 33 Cal.4th 1055, 1119 ["If every public official who is under a statutory duty to perform a ministerial act were free to refuse to perform that act based solely on the official's view that the underlying statute is unconstitutional, any semblance of a uniform rule of law quickly would disappear, and constant and widespread judicial intervention would be required to permit the ordinary mechanisms of government to function"].) Moreover, enforcement of this policy against abuse by government officials is essential in the context of initiative and (even more so) in the referendum context. Because an initiative or referendum is often responsive to failure by the government to act on the people's will, the motivation and opportunity for abuse by officials of the government body is particularly great. (See, e.g., Amador Valley Joint Union High Sch. Dist. v. State Bd. of Equalization (1978) 22 Cal.3d 208, 228-229 ["(The ballot measure) is deficient as a means of legislation in that it permits very little balancing of interests or compromise, but it was designed primarily for use in situations where the ordinary machinery of legislation had utterly failed in this respect"].) Here, we have presented to you more than sufficient signatures to bring the City's decision to the ballot, and we accumulated sufficient signatures in a mere three weeks, without having an organization in place to do so when we began. By refusing us, you are cutting off Half Moon Bay's voters' reserved right of direct democracy. Hence, we strongly request that you process our petition as required until and unless a court of competent jurisdiction orders otherwise. A court order is the only way you may excuse the performance of your ministerial duty.

This issue is so critically important to the voters of Half Moon Bay that we further demand that you place this matter on the agenda for the upcoming City Council Special Meeting scheduled for Wednesday, August 7, at 7 PM, so the public can be heard by our elected representatives, and that they can discuss and decide whether to promptly accept the clearly expressed desire by so many of Half Moon Bay's citizens that the matter be placed on the ballot, enabling all sides to clearly express and discuss this matter of great importance to the future of our city - or, alternatively, whether or not to seek a judicial order that you not perform your ministerial duty.

On behalf of the Let HMB Voters Decide Committee, I am
Sincerely Yours,
Hal Bogner
Cc: Brian Hildreth, partner, Bell McAndrews & Hiltachk, LLP Matthew Chidester, Half Moon Bay City Manager

BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY

AGENDA REPORT
For meeting of: August 7, 2024
TO: Honorable Mayor and City Council
VIA: Matthew Chidester, City Manager
FROM: Mike Noce, Housing Programs Manager

TITLE: SECOND HCD DRAFT HOUSING ELEMENT
______________________________________________________________________________ RECOMMENDATION:
1) Acknowledge receipt of recommendations from the Planning Commission included in this staff report; and 2) direct staff to include any recommended revisions made by the City Council and direct staff, by resolution, to submit the “2023-2031 Housing Element, Second HCD Draft, July 30, 2024” (Second Draft) to the California Department of Housing and Community Development (HCD).

NOTE: The current draft titled “2023-2031 Housing Element, Second HCD Draft, July 30, 2024” is available on the City’s website at www.hmbcity.com/housingelement (Attachment 2).

FISCAL IMPACT:

There is no fiscal impact associated with this action.

STRATEGIC ELEMENTS:

This action supports the Healthy Communities and Public Safety and Inclusive Governance Elements of the Strategic Plan.

BACKGROUND:

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. The City’s Housing Element must be updated every eight years and certified by the California Department of Housing and Community Development (HCD). 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; consider constraints to housing opportunities; 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 an array of housing options for all income levels, including rental and ownership units. The element must also provide for housing to serve large and multigenerational households, small households and seniors. Finally, the element must provide for diversity of housing construction and occupancy types including factory-built units, mobile homes, and emergency housing. Locating housing near transit, services, and other resources is also key to providing housing that meets the needs of residents.

Timeline
Prior to the release of the First HCD Draft Housing Element in May 2023, staff facilitated a variety of outreach activities to gather input from the community, stakeholder groups, and with elected/appointed officials. The Community Engagement appendix, beginning on page G-1 of the Housing Element, provides further details about the City’s engagement approach.

Milestones associated with community outreach and the preparation of Cycle 6 Housing Element are provided below in Table 1.

Table 1: Milestone Dates
City Council Listening Sessions
• March 3, 2021 (Wednesday evening): 18 attendees
• March 6, 2021 (Saturday morning): 10 attendees
• March 9, 2022 (Wednesday evening): 30 attendees
• March 13, 2022 (Sunday afternoon): 22 attendees
Let’s Talk Housing Community Meeting (Half Moon Bay Atherton, Daly City, Pacifica, Woodside, and Unincorporated San Mateo County)
• April 14, 2022 (46 attendees, 9 attendees from Half Moon Bay) City Council and Planning Commission Joint Study Session • November 9, 2021: 83 attendees, 25 speakers (housing sites, opportunities, constraints)
Stakeholders and Service Agency Interviews: April 12, 2022 – April 19, 2022 • Coastside Hope (Service provider)
• Senior Coastsiders (Affordable senior housing and service provider) • MidPen Housing (Affordable housing provider)
• Society of St. Vincent de Paul (Service provider)

• Abundant Grace (Service provider)
• Housing Leadership Council (Affordable housing advocate) • Housing Choices (Affordable and inclusive housing advocate) • HIP Housing (Affordable housing and service provider) • Habitat for Humanity (Affordable housing provider)
• Boys and Girls Club (Service provider)
Focus Groups
• June 8, 2022 – Senior Coastsiders: 8 attendees
• June 16, 2022 – ALAS: 8 adult attendees as well as some school-age children First Public Draft Cycle 6 Housing Element
• April 17, 2023 – publish date and release to the community • April 17 – May 16, 2023, required 30-day public review period City Council and Planning Commission Joint Work Session • May 9, 2023 – City Council directed staff to submit draft to HCD First HCD Draft Cycle 6 Housing Element
• May 31, 2023 – City submitted draft to HCD; 90-day HCD review period commenced HCD Response
• August 30, 2023 – HCD provides response letter to the City • Staff acknowledges the time between the HCD response in August 2023 and the next milestone of May 31, 2024, was a much longer timeline than expected. Various factors contributed to this delay including: detailed analysis of HCD responses, followup meetings with HCD for clarification, preparation of revisions and work on critical affordable housing projects.

Second HCD Draft Cycle 6 Housing Element
• May 24, 2024 – revised draft released to the public (yet to be submitted to HCD) • July 23, 2024 – Planning Commission work session to review second draft As noted above, the City’s first draft of the Cycle 6 Housing Element was submitted to HCD in May 2023, which commenced HCD’s 90-day review period. HCD provided the City with a response letter on August 30, 2023 (Attachment 3) that included various comments requiring research and edits. The revisions HCD describes in their letter are necessary to comply with all statutory requirements of State Housing Element Law.

RHNA and Contents of the Housing Element
The draft Cycle 6 Housing Element represents a statutorily consistent approach to meeting the City’s housing needs within the context of the California Coastal Zone and competing public interests. The City’s share of the Regional Housing Needs Allocation (RHNA) for the current Cycle 6 (2023-2031) is 480 units, which is twice the Cycle 5 RHNA (2015-2022) of 240 units. The RHNA is determined by HCD for each region of the state, and more information is available on the HCD website via this link.

The Cycle 6 RHNA for the City is divided amongst income categories as follows:

Table 2: Regional Housing Needs Allocation for Half Moon Bay Cycle 6 RHNA
Income Category
Very Low Low Moderate Above Moderate Total
181 104 54 141 480
Over time, the State has modified the required components and analytics within housing elements. These actions have created a more prescriptive approach to preparation and organization of the element. The Cycle 6 Housing Element complies with current mandates and is organized 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 Cycle 5 Housing Element in a manner consistent with the recently updated Local Coastal Land Use Plan. It provides details 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. o Affirmatively Furthering Fair Housing (AFFH) (appendix D): This is a new section required by State law for the Cycle 6 Housing Element providing important context about the history of housing discrimination, 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 provides 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

DISCUSSION:

The City has sought and accepted comments continuously since commencing work on the Housing Element. Staff published responses to the May 2023 HCD letter on May 24, 2024.

Comments received prior to May 24th have been considered and incorporated as appropriate in the Second Draft which was presented to the Planning Commission on July 23, 2024. Public comments on the Second Draft which have been received since May 24, 2024 are posted on the City’s Housing Element webpage (www.hmbcity.com/housingelement).

The City Council is being asked to authorize staff to submit the Second Draft to HCD and commence a 60-day statutory review by HCD. Staff notes the City is currently out of compliance and past due to have a certified Housing Element. Staff have been in contact with HCD housing element review staff as well as the compliance staff from the HCD Accountability Unit to convey the current schedule and to convey the City’s commitment to housing. HCD has been made aware of the City’s concurrent efforts on various housing projects and tenant protections to advance programs identified in the Draft Housing Element.

Planning Commission Discussion and Recommendation
On July 23, 2024, the Planning Commission held a work session to discuss revisions and provide the community an opportunity to provide additional input on the Second Draft. The Planning Commission’s discussion included various topics that are summarized below:
• Discussion of HCD’s recommended 15-30% housing sites buffer to accommodate the RHNA requirements during the planning period.
o If sites were to be removed, discussion on “no net loss,” which would require the City to replace removed sites with new sites.
o Discussion of the buffer related to comments on production of ADUs in recent years raising the current average being referenced in Cycle 6. • Discussion about temporary housing sites and shelters, such as the Coast House. o Only permanent housing can be included in the RHNA count; temporary housing sites do not count toward RHNA.
• Staff received input from individual commissioners about the following:
o Indication of interest in converting temporary housing sites to permanent housing with consideration that this could be well suited for future cycles of the housing element.
o Attention to how Opportunity Site owners are noticed regarding their inclusion in the housing element.
o City could consider land swaps with certain property owners for better suited housing or mixed-use sites.
o Review how the concentrated areas of affluence are referenced throughout the Housing Element.

Opportunity Site #3 - Our Lady of the Pillar
Staff also requested the Planning Commission discuss and provide input regarding Opportunity Site #3, the Our Lady of the Pillar Church property located on the 300 block of Church Street.

The Planning Commission held a robust conversation about staff’s interpretation. Key points highlighted by Commissioners included:
• Opportunity site designation does not obligate the Church to develop affordable housing.
• The church retains control over what they choose or choose not to pursue on their land as the owner.
• As a vacant site that is located in the Town Center, within close proximity to services and shopping, the site could potentially include a mix of uses including a school, housing and other services.

The total vacant land the Church owns is 1.9 acres; however, the Housing Element analyzes a portion of the vacant land, approximately 1.55 acres, for housing development. There is an onsite independent school, Our Lady of the Pillar Academy, that is operating within existing buildings. The school’s operators are in contact with City staff regarding compliance with Coastal Development Permit requirements if the school’s enrollment surpasses a certain number, which will be considered an increase in intensity of use at the site. Staff provided the following background to the Planning Commission regarding Opportunity Site #3.  Our Lady of the Pillar Church: Staff received a letter on May 28, 2024, from the Pastor of Our Lady of the Pillar requesting the site be removed from the list of opportunity sites. A previous letter dated February 5, 2021, was received from the Pastor, that indicated an intent to develop a K-8 school on the vacant site. The City has not received a formal application for the development of a school or other building(s) on the vacant site, which represents the largest vacant site within the historic downtown. Given the inclusion of the site does not obligate Our Lady of Pillar to build housing and no development activity has commenced, staff does not recommend removing the site as a potential housing site. If staff were to remove the site, there would be implications to the substantially completed environmental initial study (pending public release) pursuant to the California Environmental Quality Act (CEQA) and further analysis would be needed regarding the approach to meeting the City’s RHNA allocation. As an opportunity site, the Church retains control of their land, and the Housing Element does not require development of the land in a specific manner. The vacant portion of the site is almost 2 acres, which could fit a number of development scenarios for a school, housing, or a hybrid of uses which could be considered by the Church and the Archdiocese.

By consensus, the Planning Commission affirmed retaining Site #3 on the list of Housing Opportunity Sites given, in part, that the designation does not preclude the church from pursuing development a school.

HCD August 23, 2023 Letter
HCD raised a number of questions in their August 23, 2023, letter to the City (Attachment 4).

The City identified 36 distinct items requiring further clarification and/or revision. Staff is prepared to field questions regarding all 36 items; however, the staff report focuses on specific

items highlighted as the most significant policy questions. The Second Draft includes “track changes” in red color font to reflect all recommended edits.

The following items correspond to Attachment 4:
• Comment #5 – HCD requested staff prioritize contributing factors to fair housing issues. o On page D-6, staff highlights two fair housing concerns:
 Some racial and ethnic minority populations are disproportionately impacted by low household incomes, and overcrowding, and are more likely to be denied a home mortgage loan (High Priority)  Educational outcomes vary by racial and ethnic group (Medium Priority) • Comment #7 – HCD requested quantified amount of household overpaying for housing. o On Page A-30, staff provided additional analysis and data  Approximately 58% of lower-income households are overpaying for housing contributing to financial constraints and therefore make it harder to budget or afford common expenses such as health care, nutritional food, transportation costs, school supplies, recreational experiences, and so on.
• Comment #12 – HCD asked for additional analysis of publicly-owned sites. o Pages C-27, C-29, and H-24 include revisions to meet this requirement. o Staff would like to note that the 555 Kelly Ave. Senior Farmworker, Stone Pine Cove Farmworker, and 498 Kelly Ave. Cabrillo Unified School District Staff housing sites are at various phases in the development process, which will continue to reach milestones as the Cycle 6 Housing Element is reviewed and completed. Staff will make updates for these project and others accordingly and when appropriate based on the review timelines of the Housing Element. • Comment #20 – SB 35 Streamlined Ministerial Approval Process. o City required to respond to provisions of AB 423 (2023). o This effort is in response to State legislation (SB 423 and SB 35) requiring coastal jurisdictions to adopt objective standards and to implement them in a streamlined review of qualifying housing projects, effective January 1, 2025. o Staff acknowledges this analysis is actively being pursued by the City and a Request for Proposals (RFP) has been released by the City with proposals due August 1, 2024. Here is a link to the City’s RFP in response to SB 35 streamlining in the coastal zone with the goal of the City adopting objective design standards as part of the analysis included in the RFP.
• Comment #23 – HCD requested additional analysis of the City’s growth control ordinance, Measure D.

o On July 16, 2024, a majority of the City Council opted to not pursue a ballot initiative on the November 2024 general election.
o Staff is proposing to analyze non-voter paths to address ADUs and intends to return to the City Council for further input on next steps, which is a process that is expected to involve the Planning Commission.
o Comment #34 looks to be a duplicate and will likely be deleted because it is also related to the growth control measure.
• Comment #30 - Sites Identified in Prior Planning Periods: If necessary, the element must include a program for vacant sites identified in two or more consecutive planning periods’ housing elements or nonvacant sites identified in a prior housing element, that are currently identified to accommodate housing for lower-income households. The program must be implemented within the first three years of the planning period and commit to zoning that will meet the density requirements for housing for lower-income households and allow by-right approval for housing developments that include 20 percent or more of its units affordable to lower-income households (Gov. Code, § 65583.2, subd. (c).).
o In response, a new program has been added to the Housing Plan, see page H-10 program 1-10 (Sites Identified in Prior Planning Periods). o Staff identified opportunity sites 8, 9, 10, 11, 12 as meeting this provision. Listed in order by address and applicable APNs below:
 500 Block Poplar Street (APNs 064-244-030, -040)
 604 Poplar Street (APNs 064-272-010, -020, and -030)
 600 Block Poplar Street (APNs 064-272-170, -180, -190,-200)  940 Main Street (APN 064-272-100)
 Pacific Ridge Phases 2 & 3 (APNs 056-580-010 to -180, 056-570-010 to - 260)
Revisions to Programs 6-4 and 6-8 in Response to Measure D Considerations The City has revised Programs 6-4 and 6-8 (Pages H-31 and H-33) of the Second Draft Housing Element dated July 30, 2024 in response to HCD comments. The revisions were made to align with previous HCD comments, and City Council direction from their July 16, 2024 meeting in which the Council decided not to pursue a ballot initiative related to Measure D, the City’s voter-approved residential growth limitation program. These edits are made in addition to edits proposed in the City’s revised draft of the Housing Element released on May 31, 2024. HCD has specific timelines and noticing requirements for Housing Elements that the City must follow.

One of those requirements is to release revisions to the Draft Housing Element for a 7-day public comment period. The edits included in Attachment 5 (notably revision of Measure D related response) necessitated the additional 7-day public notice period and reflect specific changes to Programs 6-4 and 6-8 as well as related references. The Planning Commission was not provided these revisions at their July 23, 2024 meeting due to the proximity between meetings.

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 received Planning Commission approval of a Coastal Development Permit on May 14, 2024. The City Council reviewed three appeals of the Planning Commission’s decision and on June 26, 2024, voted to uphold the Planning Commission decision. Next steps for the project include negotiation of a Development, Disposition, and Lease Agreement (includes a ground lease for the Cityowned site) with the City and continue to pursue various prospects for fulfilling the needed funding for this development. Having entitlements from the City makes the project more competitive and likely to receive funding from the County and/or State.  Hilltop Mobile Home Park: The City is currently reviewing a Coastal Development Permit 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.

Environmental and development requirements are being evaluated by the applicant.

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. The following sites are of special note:
 940 Main Street: The City received an application for Measure D allocations for this property in 2024 from MidPen Housing, a local non-profit housing developer. Staff have not received a formal development permit application but acknowledges the developer intends to propose an affordable housing project with approximately 52 dwelling units.

The development path for this project is being analyzed by MidPen Housing and no additional information is available currently.
 Stone Pine Cove (880 Stone Pine Road): This City-owned site includes the City’s Public Works corporation yard and a Pilarcitos Creek 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.
o After the January 2023 shooting incident, the City and County worked tirelessly to relocate displaced farmworker households and the site was identified as the best opportunity for permanent, long-term affordable housing. San Mateo County has gathered funding for the site development as well as acquisition and installation of 46 manufactured homes for farmworkers and one manager unit (total of 47). The units will all be owner-occupied and will be first offered to households displaced by the shooting incident and then to other eligible farmworker households. Affordability and eligibility of the remaining units is still being evaluated by the City and County at this time.
o On February 9, 2024, an application was submitted for a follow-up Coastal Development Permit for the Emergency Coastal Development Permit issued on December 11, 2023. Construction on the site is in progress.

Environmental Review:

Pursuant to the California Environmental Quality Act (CEQA), an initial study is a preliminary analysis prepared by a lead agency (in this case, the City) to determine whether a project has a significant effect on the environment. The City and its consultant, Rincon, concluded that following the preparation of an Initial Study a Mitigated Negative Declaration (MND) was appropriate. The MND is in the process of being finalized but has not yet been released for public review. Staff intends to release the MND soon after the Planning Commission and City Council have completed their review of the Second Draft. State law requires a 30-day public review period for MNDs for certain projects that may require review by state agencies, such as housing elements.

Conclusion
Staff is requesting the City Council direct staff to submit the Second Draft to HCD to commence their 60-day review. Staff will convey recommendations from the City Council in any additional revisions to the Second Draft prior to submitting to HCD. Staff would especially appreciate feedback on the following areas, in addition to any items of the Council finds of interest:

A. Revisions identified in Attachment 4, City responses to the HCD August 30, 2023, letter.

B. Revisions identified in Attachment 5 regarding appropriate edits to Measure D considerations.

C. Input on staff’s interpretation of the Our Lady of the Pillar site related to recent feedback to remove the site from the Opportunity Site’s list.

Following the City Council’s review and expected direction to submit the revised Housing Element draft, HCD will have 60-days to return a response to the City. The Planning Commission and City Council should expect staff to return for a review of HCD response to the Second Draft

in the Fall. If the City’s revisions are found to be in substantial compliance, HCD may direct the City to adopt the Housing Element and return a copy for their certification. Some jurisdictions have been required to complete multiple rounds of revisions with HCD before receiving instruction to submit for certification, but staff is hopeful HCD finds the detailed edits in the Second Draft both responsive and compliant. If HCD finds the Second Draft in substantial compliance, staff expects to receive Housing Element certification by the end of 2024.

Otherwise, the timeline for certification could extend into 2025.

Attachments:

Attachment 1 – Resolution
Attachment 2 – Link to “2023-2031 Housing Element, Revised HCD Draft, July 30, 2024” Attachment 3 – HCD Response Letter August 30, 2023
Attachment 4 – City Responses to HCD August 30, 2023 Letter Attachment 5 – Edits in Response to Measure D Considerations Resolution No. C-2024-____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HALF MOON BAY DIRECTING STAFF TO SUBMIT THE 2023-2031 HOUSING ELEMENT (CYCLE 6) SECOND HCD DRAFT DATED JULY 30, 2024 FOR REVIEW BY THE CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY

DEVELOPMENT
WHEREAS, the Housing Element is one of the seven required general plan elements mandated by California state law; and
WHEREAS, 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; and
WHEREAS, the City’s Housing Element must be updated every eight years and certified by the California Department of Housing and Community Development (HCD); and WHEREAS, all housing elements must identify and analyze existing and projected housing needs; affirm goals and policies; establish quantified objectives; identify financial and other resources; consider constraints to housing opportunities; and provide scheduled programs for the preservation, improvement, and development of housing; and WHEREAS, the Housing Element must identify adequate sites to meet the City’s Regional Housing Needs Allocation (RHNA) of 480 units for Cycle 6 in a manner that best addresses housing needs in each jurisdiction and
WHEREAS, the City released the Cycle 6 Housing Element First HCD Draft (First Draft) in May 2023 and HCD provided a responses and comments calling for revisions to the First Draft in August 2023; and
WHEREAS, the City coordinated with HCD to prepare revisions included in the Cycle 6 Housing Element Second HCD Draft (Second Draft) in May 2024; and WHEREAS, the Planning Commission reviewed the Second Draft at their regular meeting on July 23, 2024 and provided direction to staff for the Second Draft to move forward for City Council; and
WHEREAS, the City re-released the Second Draft for additional public review in accordance with state law to account for minor revisions in July 2024; and WHEREAS, the City Council reviewed the Second Draft at a special meeting on August 7, 2024 and considered additional public comment; and
WHEREAS, the HCD is statutorily obligated to provide a response to the City within 60 days.

NOW, THEREFORE, BE IT RESOLVED THAT the City Council of the City of Half Moon Bay hereby directs staff to submit the 2023 Housing Element (Cycle 6) Second HCD Draft dated July 30, 2024 for review by the California Department of Housing and Community Development. ***************************************************************** I, the undersigned, hereby certify that the forgoing Resolution was duly passed and adopted on the 7th day of August, 2024, by the City Council of Half Moon Bay by the following vote:

AYES, Councilmembers:

NOES, Councilmembers:

ABSENT, Councilmembers:

ABSTAIN, Councilmembers:

ATTEST: APPROVED:
__________________________ _____________________________ Jessica Blair, City Clerk Joaquin Jimenez, Mayor
STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor

DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT

DIVISION OF HOUSING POLICY DEVELOPMENT
2020 W. El Camino Avenue, Suite 500
Sacramento, CA 95833
(916) 263-2911 / FAX (916) 263-7453
www.hcd.ca.gov
August 30, 2023
Jill Ekas, Director
Community Development Department
City of Half Moon Bay
501 Main Street
Half Moon Bay, CA 94019
Dear Jill Ekas:

RE: City of Half Moon Bay’s 6th Cycle (2023-2031) Draft Housing Element Thank you for submitting the City of Half Moon Bay’s (City) draft housing element received for review on May 31, 2023, along with revisions received on August 22, 2023.

These revisions were made available to the public for seven days before HCD’s review.

Pursuant to Government Code section 65585, subdivision (b), the California Department of Housing and Community Development (HCD) is reporting the results of its review. In addition, HCD considered comments from Housing Leadership Council of San Mateo County, South Bay YIMBY and YIMBY Law and East Bay YIMBY and YIMBY Law and Greenbelt Alliance, pursuant to Government Code section 65585, subdivision (c).

The draft element addresses many statutory requirements; however, revisions will be necessary to substantially comply with State Housing Element Law (Gov. Code, § 65580 et seq). The enclosed Appendix describes the revisions needed to comply with State Housing Element Law.

Several federal, state, and regional funding programs consider housing element compliance as an eligibility or ranking criteria. For example, the CalTrans Senate Bill (SB) 1 Sustainable Communities grant, the Affordable Housing and Sustainable Communities program, and HCD’s Permanent Local Housing Allocation consider housing element compliance and/or annual reporting requirements pursuant to Government Code section 65400. With a compliant housing element, the City will meet housing element requirements for these and other funding sources.

For your information, pursuant to Assembly Bill 1398 (Chapter 358, Statutes of 2021), if a local government fails to adopt a compliant housing element within 120 days of the statutory deadline (January 31, 2023), then any rezoning to make prior identified sites available or accommodate the regional housing needs allocation shall be completed no later than one year from the statutory deadline pursuant to Government Code sections Jill Ekas, Director

City of Half Moon Bay’s 6th Cycle (2023-2031) Draft Housing Element Page 2 August 30, 2023
65583, subdivision (c) and 65583.2, subdivision (c). Otherwise, the local government’s housing element will no longer comply with State Housing Element Law, and HCD may revoke its finding of substantial compliance pursuant to Government Code section 65585, subdivision (i). Please be aware, if the City fails to adopt a compliant housing element within one year from the statutory deadline, the element cannot be found in substantial compliance until these rezones are completed.

Public participation in the development, adoption and implementation of the housing element is essential to effective housing planning. Throughout the housing element process, the City should continue to engage the community, including organizations that represent lower-income and special needs households, by making information regularly available and considering and incorporating comments where appropriate. Please be aware, any revisions to the element must be posted on the local government’s website and to email a link to all individuals and organizations that have previously requested notices relating to the local government’s housing element at least seven days before submitting to HCD.

For your information, some general plan element updates are triggered by housing element adoption. HCD reminds the City to consider timing provisions and welcomes the opportunity to provide assistance. For information, please see the Technical Advisories issued by the Governor’s Office of Planning and Research at:
https://www.opr.ca.gov/planning/general-plan/guidelines.html.

HCD appreciates the dedication you and Mike Noce provided during the update and review. We are committed to assisting the City in addressing all statutory requirements of State Housing Element Law. If you have any questions or need additional technical assistance, please contact Anthony Errichetto, of our staff, at [email protected].

Sincerely,
Paul McDougall
Senior Program Manager
Enclosure
City of Half Moon Bay’s 6th Cycle (2023-2031) Draft Housing Element Page 1 August 30, 2023

APPENDIX

CITY OF HALF MOON BAY
The following changes are necessary to bring the City’s housing element into compliance with Article 10.6 of the Government Code. Accompanying each recommended change, we cite the supporting section of the Government Code.

Housing element technical assistance information is available on HCD’s website at https://www.hcd.ca.gov/planning-and-community-development/hcd-memos. Among other resources, the housing element section contains HCD’s latest technical assistance tool, Building Blocks for Effective Housing Elements (Building Blocks), available at https://www.hcd.ca.gov/planning-and-community-development/housing-elements/buildingblocks and includes the Government Code addressing State Housing Element Law and other resources.

A. Review and Revision
Review the previous element to evaluate the appropriateness, effectiveness, and progress in implementation, and reflect the results of this review in the revised element. (Gov. Code, § 65588 (a) and (b).)
As part of the evaluation of programs in the past cycle, the element must also provide an explanation or summary of the effectiveness of goals, policies, and related actions in meeting the housing needs of special needs populations (e.g., elderly, persons with disabilities, large households, female headed households, farmworkers and persons experiencing homelessness). Programs should be revised as appropriate to reflect the results of this evaluation.

B. Housing Needs, Resources, and Constraints

1. Affirmatively further[ing] fair housing in accordance with Chapter 15 (commencing with Section 8899.50) of Division 1 of Title 2…shall include an assessment of fair housing in the jurisdiction. (Gov. Code, § 65583, subd. (c)(10)(A).) Local Data and Knowledge, and Other Relevant Factors: The element must include local data, knowledge, and other relevant factors to discuss and analyze any unique attributes about the City related to fair housing issues. The element should complement federal, state, and regional data with local data and knowledge where appropriate to capture emerging trends and issues, including utilizing knowledge from local and regional advocates and service providers. In addition, the element must include other relevant factors that contribute to fair housing issues in the jurisdiction. For instance, the element can analyze historical land use and investment practices or other information such as demographic trends.

City of Half Moon Bay’s 6th Cycle (2023-2031) Draft Housing Element Page 2 August 30, 2023
Integration and Segregation: The element should incorporate local data and knowledge of the jurisdiction into the Affirmatively Furthering Fair Housing (AFFH) section. To assist in meeting this requirement, the element should provide local data not captured in regional, state, or federal data analysis.

Disparities in Access to Opportunity: The element must provide a complete local analysis of patterns and trends for access to educational and economic opportunity within the City. A comprehensive analysis should include the local and regional disparities through local, federal, and/or state data as well as local data and knowledge.

Please refer to the AFFH guidebook starting on page 35 (link:
https://www.hcd.ca.gov/community-development/affh/docs/AFFH_Document_Final_4- 27-2021.pdf) for specific factors that should be considered when analyzing access to opportunities as it pertains to educational, employment, environmental, transportation, and any factors that are unique to Half Moon Bay.

Contributing Factors to Fair Housing Issues: Based on the outcomes of a complete analysis, the element should re-assess and prioritize the contributing factors to fair housing issues.

2. Include an analysis of population and employment trends and documentation of projections and a quantification of the locality's existing and projected needs for all income levels, including extremely low-income households. (Gov. Code, § 65583, subd. (a)(1).)
Include an analysis and documentation of household characteristics, including level of payment compared to ability to pay, housing characteristics, including overcrowding, and housing stock condition. (Gov. Code, § 65583, subd. (a)(2).) Analyze any special housing needs such as elderly; persons with disabilities, including a developmental disability; large families; farmworkers; families with female heads of households; and families and persons in need of emergency shelter. (Gov. Code, § 65583, subd. (a)(7).)
Extremely Low-Income (ELI): While the element quantifies existing and projected ELI households, it must also analyze their housing needs, including trends, tenure, overpayment, overcrowding, and other characteristics.

Overpayment: While the element analyzes cost burden in the City, including lower income overpayment, it must also quantify the total number of lower-income households overpaying for housing, by tenure.

Special Housing Needs: In addition to quantifying the number of the elderly, persons with disabilities, large families, farmworkers, families with female heads of households, and families, and persons in need of emergency shelter it must also analyze their special housing needs. The analysis should include, but is not limited to, factors such as household income, tenure, housing types, zoning, and available resources. The analysis of available resources should also assess the gaps in resources to address this City of Half Moon Bay’s 6th Cycle (2023-2031) Draft Housing Element Page 3 August 30, 2023
need. Programs should be modified (as appropriate) to address the gap between existing resources and the needs of this population. Local officials, special needs service providers, or City/County social and health service providers may be able to assist with information to complete the analysis.

3. An inventory of land suitable and available for residential development, including vacant sites and sites having realistic and demonstrated potential for redevelopment during the planning period to meet the locality’s housing need for a designated income level, and an analysis of the relationship of zoning and public facilities and services to these sites. (Gov. Code, § 65583, subd. (a)(3).)
Progress in Meeting the Regional Housing Need Allocation (RHNA): The element indicates that units affordable to very low-income households and low-income households have been built or are under construction or approved; however, the element must demonstrate their availability in the planning period. Availability should address the status, anticipated completion, any barriers to development and other relevant factors such as build out horizons, phasing, and dropout rates to demonstrate the availability or likelihood of development in the planning period.

Realistic Capacity: While the element provides assumptions of buildout for sites included in the inventory, it must also provide support for these assumptions. For example, the element should demonstrate what specific trends, factors, and other evidence led to the assumptions. The estimate of the number of units for each site must be adjusted as necessary, based on the land use controls, site improvements, and typical densities of existing or approved residential developments at a similar affordability level in the jurisdiction.

Environmental Constraints: While the element includes discussion of environmental constraints relative to identified sites, it should also discuss any other known conditions that could preclude development on identified sites in the planning period. Examples include shape, easements, Williamson act contracts, contamination, coastal policies, and property conditions.

Publicly-Owned Sites: The element must include discussion on each of the publiclyowned sites identified to accommodate the RHNA, including school sites. Specifically, the analysis should address general plan designations, allowable densities, support for residential capacity assumptions, existing uses, and any known conditions that preclude or could promote development in the planning period, current status, and potential schedule for development. Based on this analysis, the element should add or modify programs as needed. Programs should include a schedule of actions to facilitate development in the planning period in stride with assumptions in the inventory such as numerical objectives, compliance with the Surplus Land Act, outreach with developers or property owners, removing barriers to development, issuing requests for proposals, incentives, fee waivers, priority processing and financial assistance.

Electronic Sites Inventory: For your information, pursuant to Government Code section 65583.3, the City must submit an electronic sites inventory with its adopted housing element.

City of Half Moon Bay’s 6th Cycle (2023-2031) Draft Housing Element Page 4 August 30, 2023
The City must utilize standards, forms, and definitions adopted by HCD. Please see HCD’s housing element webpage at https://www.hcd.ca.gov/planning-and-communitydevelopment/housing-elements for a copy of the form and instructions. The City can reach out to HCD at [email protected] for technical assistance.

Zoning for Variety of Housing Types:
• Employee Housing: The element must demonstrate zoning is consistent with the Employee Housing Act (Health and Safety Code, § 17000 et seq.), specifically, sections 17021.5, 17021.6 and 17021.8. For example, section 17021.5 requires employee housing for six or fewer employees to be treated as a single-family structure and permitted in the same manner as other dwellings of the same type in the same zone. Section 17021.6 requires employee housing consisting of no more than 12 units or 36 beds to be permitted in the same manner as other agricultural uses in the same zone. Based on the outcomes of this analysis, the element should add or modify programs, as appropriate.
• Emergency Shelters: The element should describe the development standards for zones that allows emergency shelters by-right. The housing element must demonstrate the permit processing, development, and management standards for emergency shelters are objective and encourage and facilitate the development of, or conversion to, emergency shelters.
• Permanent Supportive Housing: Permanent supportive housing shall be a use by-right in zones where multifamily and mixed uses are permitted, including nonresidential zones permitting multifamily uses pursuant to Government Code section 65651. The element must demonstrate compliance with this requirement and add or modify programs as appropriate.
• Accessory Dwelling Unit (ADU): Following a cursory review of the City’s ADU ordinance, HCD discovered several areas which are not consistent with State ADU Law. HCD will provide a complete listing of ADU noncompliance issues under a separate cover. As a result, while the element includes a program to update the City’s ADU ordinance to comply with state law, the program should specify timing (e.g., within six months of HCD’s review).

4. An analysis of potential and actual governmental constraints upon the maintenance, improvement, or development of housing for all income levels, including the types of housing identified in paragraph (1) of subdivision (c), and for persons with disabilities as identified in the analysis pursuant to paragraph (7), including land use controls, building codes and their enforcement, site improvements, fees and other exactions required of developers, and local processing and permit procedures... (Gov. Code, § 65583, subd. (a)(5).)
Fees: The element indicates that fees for multifamily projects are a potential constraint to development. Excessive fees for multifamily projects have significant impacts on housing affordability and production. The element should include an evaluation of these fees (e.g., park facilities fee) and add programs to address the constraint as appropriate. In addition, the analysis should identify the total amount of fees and their proportion to the development costs for both single family and multifamily housing.

City of Half Moon Bay’s 6th Cycle (2023-2031) Draft Housing Element Page 5 August 30, 2023
For additional information and a sample analysis and tables, see the Building Blocks at https://www.hcd.ca.gov/planning-and-community-development/housingelements/building-blocks/fees-and-exactions.

Design Review: The element must demonstrate this process is not a constraint or it must include a program to address this permitting requirement, as appropriate. In particular, the element describes the Design Review findings of approval; however, the element should analyze these standards for impacts on timing, cost, supply and approval certainty and include programs to address identified constraints and allow for objectivity and certainty.

SB 35 Streamlined Ministerial Approval Process: The element must clarify whether there are written procedures for the SB 35 (Chapter 366, Statutes of 2017) Streamlined Ministerial Approval Process and add a program to address these requirements.

On/Off-Site Improvements: The element must identify subdivision level improvement requirements and analyze their impact as potential constraints on housing supply and affordability. For additional information and a sample analysis, see the Building Blocks at https://www.hcd.ca.gov/planning-and-community-development/housingelements/building-blocks/codes-and-enforcement-and-onsite-offsite-improvementstandards.

Inclusionary Zoning: The element must analyze the City’s inclusionary housing requirements, including its impacts as potential constraints on the development of housing for all income levels. The analysis must evaluate the broader policy’s implementation framework, including the percentage of new residential construction dedicated to affordable housing; the types of options and incentives offered, alternatives for compliance (or lack thereof), relationships with State Density Bonus Law, and any other factors that may impact housing costs.

Growth Control: While the element discusses the City’s growth control, including the ability to accommodate the RHNA; it should also evaluate the process for impacts on housing cost, supply, timing, and approval certainty. In addition, the element should discuss compliance with the Housing Crisis Act (Gov. Code, § 66300 et seq) and ADU law (Gov. Code, § 65852.2 et seq) and add or modify programs, if necessary.

Zoning, Development Standards, and Fees Transparency: While the element mentions the City’s website posts fees, it should also clarify compliance with new transparency requirements for posting all zoning and development standards on the City’s website and add a program to address these requirements, if necessary.

Water and Sewer Priority: Water and sewer service providers must establish specific procedures to grant priority water and sewer service to developments with units affordable to lower-income households. (Gov. Code, § 65589.7.) Local governments are required to immediately deliver the housing element to water and sewer service providers. The element should discuss compliance with these requirements and if City of Half Moon Bay’s 6th Cycle (2023-2031) Draft Housing Element Page 6 August 30, 2023
necessary, add or modify programs to establish a written procedure by a date early in the planning period.

For additional information and sample cover memo, see the Building Blocks at https://www.hcd.ca.gov/planning-and-community-development/housingelements/building-blocks/priority-water-and-sewer.

5. An analysis of potential and actual nongovernmental constraints upon the maintenance, improvement, or development of housing for all income levels, including… …requests to develop housing at densities below those anticipated in the analysis required by subdivision (c) of Government Code section 65583.2, and the length of time between receiving approval for a housing development and submittal of an application for building permits for that housing development that hinder the construction of a locality’s share of the regional housing need in accordance with Government Code section 65584... (Gov. Code, § 65583, subd. (a)(6).)
Approval Time and Requests Lesser Densities: The element must include analysis of requests to develop housing at densities below those identified and the length of time between receiving approval for a housing development and submittal of an application for building permits. The element must address any hinderance on the development of housing and include programs as appropriate.

C. Housing Programs

1. Include a program which sets forth a schedule of actions during the planning period, each with a timeline for implementation, which may recognize that certain programs are ongoing, such that there will be beneficial impacts of the programs within the planning period, that the local government is undertaking or intends to undertake to implement the policies and achieve the goals and objectives of the Housing Element through the administration of land use and development controls, the provision of regulatory concessions and incentives, and the utilization of appropriate federal and state financing and subsidy programs when available. The program shall include an identification of the agencies and officials responsible for the implementation of the various actions. (Gov.

Code, § 65583, subd. (c).)
To have a beneficial impact in the planning period and achieve the goals and objectives of the housing element, programs to be revised, as follows:
• Program 6-6 (Work with Non-Profits and Regional Partners): The element must provide discrete timing for the Program (e.g., at least annually, by 2025) to account for how often the action will occur as well as to ensure a beneficial impact throughout the planning period and quantify objectives where feasible. • Program 6-8 (Annual Review of Residential Dwelling Unit Allocation System):

While the Program commits to monitor permitted ADUs and affordability with discrete timing, it should also commit to additional appropriate action such as City of Half Moon Bay’s 6th Cycle (2023-2031) Draft Housing Element Page 7 August 30, 2023
adjusting assumptions and rezoning within a specified time (e.g., six months), as necessary.

2. Identify actions that will be taken to make sites available during the planning period with appropriate zoning and development standards and with services and facilities to accommodate that portion of the city’s or county’s share of the regional housing need for each income level that could not be accommodated on sites identified in the inventory completed pursuant to paragraph (3) of subdivision (a) without rezoning, and to comply with the requirements of Government Code section 65584.09. Sites shall be identified as needed to facilitate and encourage the development of a variety of types of housing for all income levels, including multifamily rental housing, factory-built housing, mobilehomes, housing for agricultural employees, supportive housing, single-room occupancy units, emergency shelters, and transitional housing. (Gov. Code, § 65583, subd. (c)(1).)
As noted in Finding B3, the element does not include a complete site analysis; therefore, the adequacy of sites and zoning were not established. Based on the results of a complete sites inventory and analysis; the City may need to add or revise programs to address a shortfall of sites or zoning available to encourage a variety of housing types. In addition, the element should be revised as follows:

Publicly-Owned Sites: The element identified City-Owned sites to accommodate a portion of the RHNA. The element should include a program with numerical objectives that ensures compliance with the Surplus Land Act, provides incentives, and actions along with a schedule to facilitate development of City-Owned sites. Actions should include outreach with developers, issuing requests for proposals, incentives, fee waivers, priority processing, and financial assistance.

Sites Identified in Prior Planning Periods: If necessary, the element must include a program for vacant sites identified in two of more consecutive planning periods’ housing elements or nonvacant sites identified in a prior housing element, that are currently identified to accommodate housing for lower-income households. The program must be implemented within the first three years of the planning period and commit to zoning that will meet the density requirements for housing for lower-income households and allow by-right approval for housing developments that include 20 percent or more of its units affordable to lower-income households (Gov. Code, § 65583.2, subd. (c).).

3. The Housing Element shall contain programs which assist in the development of adequate housing to meet the needs of extremely low-, very low-, low- and moderateincome households. (Gov. Code, § 65583, subd. (c)(2).) Extremely Low Income (ELI): The element must include a program(s) with specific actions and timelines to assist in the development of housing for extremely low-income households. The program(s) could commit the City to adopting priority processing, granting fee waivers or deferrals, modifying development standards, granting concessions and incentives for housing developments that include units affordable to City of Half Moon Bay’s 6th Cycle (2023-2031) Draft Housing Element Page 8 August 30, 2023
extremely low-income households; assisting, supporting or pursuing funding applications; and outreach and coordination with affordable housing developers.

For additional information, see the Building Blocks at https://www.hcd.ca.gov/planningand-community-development/housing-elements/building-blocks/assist-developmenthousing.

Farmworkers and Homelessness: The element must include programs to assist in the development of housing for lower- and moderate-income households, including special needs households. Specifically, programs should be added or modified to address the needs of farmworkers and persons experiencing homelessness. For example, for farmworkers, the element could commit to proactive actions to coordinate with non-profit developers, employers, and other related organizations, to explore funding and incentives and to identify specific development opportunities.

4. Address and, where appropriate and legally possible, remove governmental and nongovernmental constraints to the maintenance, improvement, and development of housing, including housing for all income levels and housing for persons with disabilities. The program shall remove constraints to, and provide reasonable accommodations for housing designed for, intended for occupancy by, or with supportive services for, persons with disabilities. (Gov. Code, § 65583, subd. (c)(3).) As noted in Findings B4 and B5, the element requires a complete analysis of potential governmental and nongovernmental constraints. Depending upon the results of that analysis, the City may need to revise or add programs and address and remove or mitigate any identified constraints. In addition, the element should be revised as follows:

Program 1-2 (Missing Middle Housing Development Standards): The Program should be revised to remove the garage parking requirement with discrete timing.

Growth Control: As noted in Finding B4, the element should contain a complete analysis of the City’s growth control and add or modify programs as appropriate to address constraints, including compliance with the Housing Crisis Act and ADU law.

5. Promote and affirmatively further fair housing opportunities and promote housing throughout the community or communities for all persons regardless of race, religion, sex, marital status, ancestry, national origin, color, familial status, or disability, and other characteristics... (Gov. Code, § 65583, subd. (c)(5).)
As noted in Finding A1, the element requires a complete AFFH analysis. Depending upon the results of that analysis, the City may need to revise or add programs. Goals and actions must specifically respond to the analysis and to the identified and prioritized contributing factors to fair housing issues and must be significant and meaningful enough to overcome identified patterns and trends. Actions must have specific commitment, metrics, and milestones as appropriate and must address housing mobility enhancement, new housing choices and affordability in higher opportunity areas, placebased strategies for community preservation and revitalization and displacement protection.

City of Half Moon Bay’s 6th Cycle (2023-2031) Draft Housing Element Page 9 August 30, 2023

6. Develop a plan that incentivizes and promotes the creation of accessory dwelling units that can be offered at affordable rent... (Gov. Code, § 65583, subd. (c)(7).) Program 6-8 (Annual Review of Residential Dwelling Unit Allocation System): The program must be expanded to include incentives to promote the creation and affordability of ADUs. Examples include exploring and pursuing funding, modifying development standards, and reducing fees beyond state law, increasing awareness, pre-approved plans and homeowner/applicant assistance tools.

Half Moon Bay – Response to HCD Letter: Page 1
Updated Responses to August 30, 2023 “Out” Letter
All page numbers are from the Track Changes version of the Second HCD Draft (July 2024). The August 2023 response letter is available here.

Updated items are highlighted in the table below.

Comment
# Revision Request Corresponding Recommended Modifications to the Housing Element Response 1 Review and Revision: As part of the evaluation of
programs in the past cycle, the element must also
provide an explanation or summary of the
effectiveness of goals, policies, and related actions in meeting the housing needs of special needs
populations (e.g., elderly, persons with disabilities,
large households, female headed households,
farmworkers and persons experiencing
homelessness). Programs should be revised as
appropriate to reflect the results of this evaluation.

Technical Report F
New subsection “Housing and Services for Special Needs
Populations” that describes how needs were met for 6
groups and what changes may be necessary.

New “Special Needs
Populations”
subsection on page
F-3
2 Local Data and Knowledge, and Other Relevant
Factors: The element must include local data,
knowledge, and other relevant factors to discuss and
analyze any unique attributes about the City related
to fair housing issues. The element should
complement federal, state, and regional data with
local data and knowledge where appropriate to
capture emerging trends and issues, including
utilizing knowledge from local and regional advocates
and service providers. In addition, the element must
include other relevant factors that contribute to fair
housing issues in the jurisdiction. For instance, the
element can analyze historical land use and
investment practices or other information such as
demographic trends.

AFFH Assessment
New subsection under “Population, Employment, and
Household Characteristics” describing historical land use and investment in a couple of paragraphs. This can be at the beginning of the section, describing agricultural
nature of town and how that’s unique in San Mateo
County, and where investment has gone recently.

New “History of
segregation in Half
Moon Bay”
section/text added
on D-4
Half Moon Bay – Response to HCD Letter: Page 2
3 Integration and Segregation: he element should
incorporate local data and knowledge of the
jurisdiction into the Affirmatively Furthering Fair
Housing (AFFH) section. To assist in meeting this
requirement, the element should provide local data
not captured in regional, state, or federal data
analysis.

AFFH Assessment
New subsection at end of “Integration and Segregation”
beginning on page D-21) describing local integration and segregation issues with farmworkers.

New text added on
D-21
4 Disparities in Access to Opportunity: The element
must provide a complete local analysis of patterns
and trends for access to educational and economic
opportunity within the City. A comprehensive
analysis should include the local and regional
disparities through local, federal, and/or state data as well as local data and knowledge.

Please refer to the AFFH guidebook starting on page
35 (link: https://www.hcd.ca.gov/communitydevelopment/affh/docs/AFFH_Document_Final_4- 27-2021.pdf) for specific factors that should be
considered when analyzing access to opportunities as
it pertains to educational, employment,
environmental, transportation, and any factors that
are unique to Half Moon Bay.

Housing Resources
“Disparities in Opportunity” section on page D-21
references additional mapping in Housing Resources
chapter.

This mapping, in Access to Opportunity (beginning page
C-56) includes additional mapping of TCAC Opportunity + Education/Environment/Economy, Jobs Proximity Index,
and local knowledge. This include a comparisons to
R/ECAP and other mapping.

Noted where in
Housing Resources
Chapter the
additional analysis
lies on page D-21
In C: Housing
Resources, added
additional mapping
and analysis
beginning on page C56
5 Contributing Factors to Fair Housing Issues: Based on the outcomes of a complete analysis, the element
should re-assess and prioritize the contributing
factors to fair
housing issues.

Fair Housing Assessment
Identified and prioritized fair housing challenges on page D-6. The Element lists a variety of challenges and
identifies two primary ones, disproportionate impact of household incomes, overcrowding, and denial of loans by race, and educational outcomes varying by race.

Added text on D-6
6 Extremely Low-Income (ELI): While the element
quantifies existing and projected ELI households, it
Housing Needs Assessment New text on page A11
Half Moon Bay – Response to HCD Letter: Page 3
must also analyze their housing needs, including
trends, tenure, overpayment, overcrowding, and
other characteristics.

Added additional census data (or MTC Data Packet data)
into Extremely Low Income Households section beginning
on page A-11.
7 Overpayment: While the element analyzes cost
burden in the City, including lower income
overpayment, it must also quantify the total number
of lower-income households overpaying for housing,
by tenure.

Housing Needs Assessment
Added more census data into Overpayment and
Overcrowding section beginning on page A-30.

New text on page A30
8 Special Housing Needs: In addition to quantifying the number of the elderly, persons with disabilities, large families, farmworkers, families with female heads of
households, and families, and persons in need of
emergency shelter it must also analyze their special
housing needs. The analysis should include, but is not
limited to, factors such as household income, tenure,
housing types, zoning, and available resources. The
analysis of available resources should also assess the
gaps in resources to address this need. Programs
should be modified (as appropriate) to address the
gap between existing resources and the needs of this
population. Local officials, special needs service
providers, or City/County social and health service
providers may be able to assist with information to
complete the analysis.

Housing Needs Assessment
Added more census and/or MTC Data Packet data to each
of the subsections under Special Housing Needs
beginning on page A-37. Also described available
resources and Housing Element programs to support
these populations.

New text beginning
page A-37
9 Progress in Meeting the Regional Housing Need
Allocation (RHNA): The element indicates that units
affordable to very low-income households and lowincome households have been built or are under construction or approved; however, the element
must demonstrate their availability in the planning
period. Availability should address the status,
anticipated completion, any barriers to development
and other relevant factors such as build out horizons,
Housing Resources
In Table C-4, revised “Pipeline Status” column noted
anticipated completion year. Also note any barriers to
development, dropout rate, phasing, or other issues for sites with VL/L units (A, C, D, G, H, W, AI, AJ).

Revised table
beginning on page C5, followed by bullet
list of constraints
New text about
phasing and dropout
rates at bottom of C11.

Half Moon Bay – Response to HCD Letter: Page 4
phasing, and dropout rates to demonstrate the
availability or likelihood of development in the
planning period.
10 Realistic Capacity: While the element provides
assumptions of buildout for sites included in the
inventory, it must also provide support for these
assumptions. For example, the element should
demonstrate what specific trends, factors, and other
evidence led to the assumptions. The estimate of the
number of units for each site must be adjusted as
necessary, based on the land use controls, site
improvements, and typical densities of existing or
approved residential developments at a similar
affordability level in the jurisdiction.

Housing Resources
Introduced (page C-16) and assembled Adjustment Factor
tables based on other San Mateo County development.

Site-by-site development on non-vacant sites is provided for Sites 1, 2, 6, 7, 9 and 11, beginning on page C-26.

Additional historic
information is
provided beginning
on page C-16. Siteby-site development
on non-vacant sites is
described on a siteby-site basis
beginning on page C26 (Sites 1,2, 6, 7, 9,
11)
11 Environmental Constraints: While the element
includes discussion of environmental constraints
relative to identified sites, it should also discuss any other known conditions that could preclude
development on identified sites in the planning
period. Examples include shape, easements,
Williamson act contracts, contamination, coastal
policies, and property conditions.

Housing Resources
Additional constraints discussed on a site-by-site basis in the “Housing Opportunity Sites Summaries” section
(beginning page C-26).

Site-by-site
discussions begin on
page C-26
12 Publicly-Owned Sites: The element must include
discussion on each of the publicly-owned sites
identified to accommodate the RHNA, including
school sites. Specifically, the analysis should address general plan designations, allowable densities,
support for residential capacity assumptions, existing
uses, and any known conditions that preclude or
could promote development in the planning period,
current status, and potential schedule for
development. Based on this analysis, the element
should add or modify programs as needed. Programs
should include a schedule of actions to facilitate
Housing Resources
Expanded discussions are provided for publicly-owned
Sites 1 (page C-27) and 2 (page C-29).

Added text to Program 4-8 (page H-24).

Added new
discussion on pages
C-27 (Site 1) and C-29
(Site 2)
Revised Program 4-8
(page H-24)
Half Moon Bay – Response to HCD Letter: Page 5
development in the planning period in stride with
assumptions in the inventory such as numerical
objectives, compliance with the Surplus Land Act,
outreach with developers or property owners,
removing barriers to development, issuing requests
for proposals, incentives, fee waivers, priority
processing and financial assistance.
13 Electronic Sites Inventory: For your information,
pursuant to Government Code section 65583.3, the
City must submit an electronic sites inventory with its adopted housing element The City must utilize
standards, forms, and definitions adopted by HCD.

Please see HCD’s housing element webpage at
https://www.hcd.ca.gov/planning-and-communitydevelopment/housing-elements for a copy of the form and instructions. The City can reach out to HCD
at [email protected] for technical assistance.

Updated with slight modifications (updated addresses
and information)
14 Employee Housing: The element must demonstrate
zoning is consistent with the Employee Housing Act
(Health and Safety Code, § 17000 et seq.),
specifically, sections 17021.5, 17021.6 and 17021.8.

For example, section 17021.5 requires employee
housing for six or fewer employees to be treated as a
single-family structure and permitted in the same
manner as other dwellings of the same type in the
same zone. Section 17021.6 requires employee
housing consisting of no more than 12 units or 36
beds to be permitted in the same manner as other
agricultural uses in the same zone. Based on the
outcomes of this analysis, the element should add or
modify programs, as appropriate.

Constraints
Noted on page B-30 that a new program will be
developed to allow revise local code to:
1) Treat employee housing for six or fewer
employees as a single-family structure and
permitted in the same manner as other dwellings
of the same type in the same zone
2) Permit employee housing consisting of no more
than 12 units or 36 beds in the same manner as
other agricultural uses in the same zone
Added new bullets to Program 3-4
Updated Table B-4 to
include Employee
Housing, new text
“Employee Housing”
beginning on page B30
Program 3-4 (page H17) also modified
15 Emergency Shelters: The element should describe the
development standards for zones that allows
emergency shelters by-right. The housing element
Constraints
New subsection on page B-36 for Emergency Shelters
that describe constraints in P-S zone
Updated text and
included new
Half Moon Bay – Response to HCD Letter: Page 6
must demonstrate the permit processing,
development, and management standards for
emergency shelters are objective and encourage and
facilitate the development of, or conversion to,
emergency shelters.
subsections on page
B-36
16 Permanent Supportive Housing: Permanent
supportive housing shall be a use by-right in zones
where multifamily and mixed uses are permitted,
including nonresidential zones permitting multifamily
uses pursuant to Government Code section 65651.

The element must demonstrate compliance with this
requirement and add or modify programs as
appropriate.

Constraints
Noted on page B-33 that Program 3-7 will allow
supportive housing in every district permitting
multifamily uses.

Updated Table B-4,
new text in
“Supportive Housing”
on page B-37
17 Accessory Dwelling Unit (ADU): Following a cursory
review of the City’s ADU ordinance, HCD discovered
several areas which are not consistent with State
ADU Law. HCD will provide a complete listing of ADU
noncompliance issues under a separate cover. As a
result, while the element includes a program to
update the City’s ADU ordinance to comply with state
law, the program should specify timing (e.g., within
six months of HCD’s review).

Constraints
Resolving per City’s revised Program 6-8 (see Comment
36). Process described on page B-47.

Updated page B-47.

Updated Program 6-8
(page H-33)
18 Fees: The element indicates that fees for multifamily projects are a potential constraint to development.

Excessive fees for multifamily projects have
significant impacts on housing affordability and
production. The element should include an
evaluation of these fees (e.g., park facilities fee) and add programs to address the constraint as
appropriate. In addition, the analysis should identify
the total amount of fees and their proportion to the
development costs for both single family and
multifamily housing.

Constraints
Discussion begins on page B-65
Added more analysis of fees and Table B-10 (on page B65). Clarified in writing that fees are in line with Countywide fees.

Page B-65
Half Moon Bay – Response to HCD Letter: Page 7
For additional information and a sample analysis and
tables, see the Building Blocks at
https://www.hcd.ca.gov/planning-and-communitydevelopment/housing-elements/buildingblocks/fees-and-exactions. 19 Design Review: The element must demonstrate this
process is not a constraint or it must include a
program to address this permitting requirement, as
appropriate. In particular, the element describes the
Design Review findings of approval; however, the
element should analyze these standards for impacts
on timing, cost, supply and approval certainty and
include programs to address identified constraints
and allow for objectivity and certainty.

Constraints
Discussion begins on page B-57.

Analyzed impacts of design review on timing, cost,
certainty.

Program 1-2 directs the replacement of subjective
standards with objective standards by mid-2025.

Added new language
about how findings
are not objective
currently and will
require new
program, on page B58
Program 1-2 (page H5)
20 SB 35 Streamlined Ministerial Approval Process: The
element must clarify whether there are written
procedures for the SB 35 (Chapter 366, Statutes of
2017) Streamlined Ministerial Approval Process and
add a program to address these requirements.

Constraints
Insert new subsection – page B-61
New Program H-11 responding to AB 423 (2023) - extends
SB 35 and incorporates coastal zone. Will likely need new program
New subsection
beginning on page B61
New Program 1-11
(page H-10)
21 On/Off-Site Improvements: The element must
identify subdivision level improvement requirements
and analyze their impact as potential constraints on
housing supply and affordability. For additional
information and a sample analysis, see the Building
Blocks at https://www.hcd.ca.gov/planning-andcommunity-development/housingelements/building-blocks/codes-and-enforcementand-onsite-offsite-improvement-standards.

Constraints
Discussion begins on page B-52, included more analysis
and concentrated on why City is not promoting
subdivision development as part of its housing strategy.

Added new text
beginning on page B52
22 Inclusionary Zoning: The element must analyze the
City’s inclusionary housing requirements, including its impacts as potential constraints on the development
of housing for all income levels. The analysis must
Constraints
Discussion begins on page B-35
Added more describing current execution of City’s BMR
Ordinance, added that City is considering participation in Added new text
beginning on page B40
Half Moon Bay – Response to HCD Letter: Page 8
evaluate the broader policy’s implementation
framework, including the percentage of new
residential construction dedicated to affordable
housing; the types of options and incentives offered,
alternatives for compliance (or lack thereof),
relationships with State Density Bonus Law, and any
other factors that may impact housing costs.
21 Elements’ countywide nexus studies (commercial and
residential). Also added a note about considering
inclusion in County-wide nexus studies (B-42)
Clarified on page B-40 and in Program 1-3 that this is in addition to State Density Bonus Law
Added a note about
nexus studies on
page B-41
Add mention of
nexus studies, SDBL
clarification to
Program 1-3 (page H6)
23 Growth Control: While the element discusses the
City’s growth control, including the ability to
accommodate the RHNA; it should also evaluate the
process for impacts on housing cost, supply, timing,
and approval certainty. In addition, the element
should discuss incompliance with the Housing Crisis
Act (Gov. Code, § 66300 et seq) and ADU law (Gov.

Code, § 65852.2 et seq) and add or modify programs,
if necessary.

Constraints
Discussion begins on page B-37. Text was revised to
describe new commitments, on page B-47.

Programs 6-4 (page H-31) and 6-8 (page H-33) describe
changes the City will pursue to the ordinance.

Revised text to
describe new ballot
measure under
“Residential Growth
Limitations
Ordinance” on page
B-47
Modified the second
bullet in Program 6-4
(Page H-31) re ADUs;
revised Program 6-8
(Page H-33)
24 Zoning, Development Standards, and Fees
Transparency: While the element mentions the City’s
website posts fees, it should also clarify compliance
with new transparency requirements for posting all
zoning and development standards on the City’s
website and add a program to address these
requirements, if necessary.

Constraints
Clarified that City will comply with all new transparency requirements in new subsection at end of page B-68.

Added bullet about fees transparency to Program 6-4
(page H-32)
New subsection on
page B-68
New bullet under
Program 6-4 (page H31)
25 Water and Sewer Priority: Water and sewer service
providers must establish specific procedures to grant
priority water and sewer service to developments
with units affordable to lower-income households.
(Gov. Code, § 65589.7.) Local governments are
Constraints
New subsection on Water and Sewer Priority right before “Permit Processing Procedures...” on page B-53
New section on page
B-53
Half Moon Bay – Response to HCD Letter: Page 9
required to immediately deliver the housing element
to water and sewer service providers. The element
should discuss compliance with these requirements
and if necessary, add or modify programs to establish
a written procedure by a date early in the planning
period.

For additional information and sample cover memo,
see the Building Blocks at
https://www.hcd.ca.gov/planning-and-communitydevelopment/housing-elements/buildingblocks/priority-water-and-sewer. 26 Approval Time and Requests Lesser Densities: The
element must include analysis of requests to develop
housing at densities below those identified and the
length of time between receiving approval for a
housing development and submittal of an application
for building permits. The element must address any
hinderance on the development of housing and
include programs as appropriate.

Constraints
Included new section on Developed Densities and Permit
Times using recent example, beginning on the bottom of
page B-72.

New text beginning
on page B-72
To have a beneficial impact in the planning period
and achieve the goals and objectives of the housing
element, programs to be revised, as follows:
27 Program 6-6 (Work with Non-Profits and Regional
Partners): The element must provide discrete timing
for the Program (e.g., at least annually, by 2025) to
account for how often the action will occur as well as
to eemnsure a beneficial impact throughout the
planning period and quantify objectives where
feasible.

Housing Plan
Page H-29
Revised timeline to “Ongoing, and as opportunities for
funding and applications arise throughout the
planning period.”
Page H-32
28 Program 6-8 (Annual Review of Residential Dwelling
Unit Allocation System): While the Program commits
to monitor permitted ADUs and affordability with
discrete timing, it should also commit to additional
appropriate action such as adjusting assumptions and
Housing Plan
Page H-30
Modify to describe how long it will take to “amend its
provisions within the Subdivision and Zoning Ordinance” I believe.

Page H-33
Half Moon Bay – Response to HCD Letter: Page 10
rezoning within a specified time (e.g., six months), as necessary. Added discrete timing (mid-cycle check-in for code amendment, to be completed by July 2027) if it is needed …the element does not include a complete site
analysis; therefore, the adequacy of sites and zoning
were not established. Based on the results of a
complete sites inventory and analysis; the City may
need to add or revise programs to address a shortfall
of sites or zoning available to encourage a variety of
housing types. In addition, the element should be
revised as follows:
29 Publicly-Owned Sites: The element identified CityOwned sites to accommodate a portion of the RHNA.

The element should include a program with
numerical objectives that ensures compliance with
the Surplus Land Act, provides incentives, and actions
along with a schedule to facilitate development of
City-Owned sites. Actions should include outreach
with developers, issuing requests for proposals,
incentives, fee waivers, priority processing, and
financial assistance.

Housing Plan
Program 4-8 on Page H-24
Revised to include numeric objectives and more, per Item

12. Page H-24
30 Sites Identified in Prior Planning Periods: If necessary, the element must include a program for vacant sites
identified in two of more consecutive planning
periods’ housing elements or nonvacant sites
identified in a prior housing element, that are
currently identified to accommodate housing for
lower-income households. The program must be
implemented within the first three years of the
planning period and commit to zoning that will meet
the density requirements for housing for lowerincome households and allow by-right approval for housing developments that include 20 percent or
Housing Plan
New program 1-10 (page H-10)
Note Sites 8, 9, 10, 11, 12 must meet by-right
requirements.

Page H-10
Half Moon Bay – Response to HCD Letter: Page 11
more of its units affordable to lower-income
households (Gov. Code, § 65583.2, subd. (c).).
31 Extremely Low Income (ELI): The element must
include a program(s) with specific actions and
timelines to assist in the development of housing for
extremely low-income households. The program(s)
could commit the City to adopting priority
processing, granting fee waivers or deferrals,
modifying development standards, granting
concessions and incentives for housing developments
that include units affordable to extremely lowincome households; assisting, supporting or pursuing funding applications; and outreach and coordination
with affordable housing developers.

For additional information, see the Building Blocks at
https://www.hcd.ca.gov/planning-and-communitydevelopment/housing-elements/buildingblocks/assist-development-housing.

Housing Plan
Added a section to Program 4-9 (page H-26)
New text in Program
4-9 on page H-26
32 Farmworkers and Homelessness: The element must
include programs to assist in the development of
housing for lower- and moderate-income
households, including special needs households.

Specifically, programs should be added or modified
to address the needs of farmworkers and persons
experiencing homelessness. For example, for
farmworkers, the element could commit to proactive
actions to coordinate with non-profit developers,
employers, and other related organizations, to
explore funding and incentives and to identify
specific development opportunities.

Housing Plan
Farmworkers: Expanded on program 3-4 (page H-16) with
sixth bullet, which includes discussions of rehabilitation and preservation. Funding updated to include federal
funding sources, such as Dept. Of Labor’s National
Farmworker Jobs Program Housing Services grant.

Homelessness: New program 3-10 (H-20). This program
includes a description of the City’s Community Services Financial Assistance grant program and its ongoing
coordination with Coastside Hope, LifeMoves, and
Abundant Grace. It also includes descriptions of
collaboration with County programs.

Program 3-4: page H16
Program 3-10: H-20
…the element requires a complete analysis of potential governmental and nongovernmental constraints. Depending upon the results of that analysis, the City may need to revise or add programs and address and remove or analysis, the City may need to revise or add programs and address and remove or mitigate any identified constraints. In addition, the element should be revised as follows:

Half Moon Bay – Response to HCD Letter: Page 12
33 Program 1-2 (Missing Middle Housing Development
Standards): The Program should be revised to
remove the garage parking requirement with discrete
timing.

Housing Plan
Program has timeline of “Mid-2025.”
Page H-5
34 Growth Control: As noted in Finding B4, the element
should contain a complete analysis of the City’s
growth control and add or modify programs as
appropriate to address constraints, including
compliance with the Housing Crisis Act and ADU law.

Housing Plan
See Item 23. New analysis has been provided beginning
on page B-47 and Program 6-8 has been revised
Page B-47
Program 6-8 (Page H33)
35 As noted in Finding A1, the element requires a
complete AFFH analysis. Depending upon the results
of that analysis, the City may need to revise or add
programs. Goals and actions must specifically
respond to the analysis and to the identified and
prioritized contributing factors to fair housing issues and must be significant and meaningful enough to
overcome identified patterns and trends. Actions
must have specific commitment, metrics, and
milestones as appropriate and must address housing
mobility enhancement, new housing choices and
affordability in higher opportunity areas, place-based
strategies for community preservation and
revitalization and displacement protection.

FYI
Develop a plan that incentivizes and promotes the creation of accessory dwelling units that can be offered at affordable rent... (Gov. Code, § 65583, subd. (c)(7).)
36 Program 6-8 (Annual Review of Residential Dwelling
Unit Allocation System): The program must be
expanded to include incentives to promote the
creation and affordability of ADUs. Examples include
exploring and pursuing funding, modifying
development standards, and reducing fees beyond
state law, increasing awareness, pre-approved plans
and homeowner/applicant assistance tools.

Housing Plan
HCD’s comment concerns ADUs, which are described in
Program 1-5. Program 6-8 is about Half Moon Bay’s
Measure D ballot initiative. The relationship between
Measure D and ADUs is described in Program 6-4 (Page
H-31).

Program 1-5 on page
H-7; Program 6-4 on
page H-31
ATTACHMENT 5
Attachment pg. 1
Revised HCD Draft Housing Element – July 30, 2024
Edits in Response to Measure D Considerations
Intro-3 (top of page) – no change
Additionally, the Housing Element is consistent with the City’s Residential Growth Limitations Ordinance established by ballot Measure D and certified by the Coastal Commission in the City’s LCP. Measure D’s growth limitation should not directly impact the City’s ability to support its RHNA over the Cycle 6 planning period.

PAGE H-31
Program 6-4: Removal of Constraints
The City will continue to assess and update the Zoning Ordinance, Subdivision Ordinance, Municipal Code, Local Coastal Land Use Plan, and City procedures to remove constraints and address changes in State law, particularly regarding housing for special needs groups, including seniors, the disabled (consistent with requirements of SB 520), large families, farmworkers, and the homeless.

Key areas for initial focus include:
➢ Establishing standard criteria for CEQA exemptions in the Town Center consistent with State law and the City’s LCP
➢ If the ballot measure described in Program 6-8 is not successful, the City will addressAddressing, Addressing as feasible, the applicability of Measure D to ADUs to free up capacity and to easereduce the constraint on ADU development. ➢ Direct City staff to complyComplying with newfee transparency requirements, including the posting of all zoning and development standards as well as fees. ➢ Considering the efficacy of a ballot measure as described in Program 6-8.

Objectives: Initially as a subset of zoning amendments associated with Programs 1-1 and 1-2; annual monitoring to identify if subsequent updates are necessary. Comply with state transparency requirements.

Timeline: Mid-20254 for initial updates and transparency requirements; ongoing thereafter
Responsible Party: Half Moon Bay Community Development Department Funding Sources: General Fund
Attachment pg. 2
Page H-33
Program 6-8: Annual Review of Residential Dwelling Unit Allocation System Amend Seek approval of a Local Coastal Plan Program Amendment to rRevisethe allocation requirements for ADUs and JADUs, as part of the administration of Measure D, from a full allocation per unit to a lesser amount, such as a partial allocation of 0.5 or amount considered reasonable by the City. The City will prepare non-voter initiative amendments to its Local Coastal Program for Council consideration and Coastal Commission certification to the administrative process in order to increase available allocations. a ballot measure for the November 2024 election seeking to amend Section 18.04 of the zoning code (Residential Growth Limitation Ordinance) as follows:

Revise to define “Downtown Area” as the area designated as the Town Center in the Certified Local Coastal Land Use Plan
Exempt Accessory Dwelling Units (ADUs), including Junior Accessory Dwelling Units (JADUs) from Residential Dwelling Unit Allocation limitations.

Exempt any unit which is deed restricted for a low or lower income household (defined as a household making 80% or less for the Area Median Income (AMI)) from Residential Dwelling Unit Allocation limitations.

If the November 2024 ballot measure is not successful, the City will seek to reduce the number of allocations required for ADUs and JADUs per program 6-4.

Within one year of identifying constraints on ADU and JADU housing production due to Measure D allocations, staff will prepare a report to City Council on allocation amendments and a potential resolutions LCP amendment that would release these constraints, which could include a ballot measure.

If necessary, the City will consider the also preparation of a ballot measure for the 2026 election with a more substantial public communications process than the timespan for the 2024 election allows, which may include revisiting the following areas:. ➢ Revise to define “Downtown Area” as the area designated as the Town Center in the Certified Local Coastal Land Use Plan
➢ Exempt Accessory Dwelling Units (ADUs), including Junior Accessory Dwelling Units (JADUs) from Residential Dwelling Unit Allocation limitations. ➢
Note: Dependent on various administrative or ballot related amendmentsUnder the current LCP and voter-approved Residential Dwelling Unit Allocation System (Measure D), allocations are confirmed by City Council in December annually; evaluation of applications received on or before between January 1 and January 31 by February, evaluation and establishment of rankings if needed for Planning Commission ratification in AprilMay; City Council consideration of potential allocation transfers no earlier than September.

The City will continue to implement the Residential Growth Limitations Ordinance (Measure D) through an annual review of the applications seeking allocations according to the Residential Dwelling Unit Allocation System Ordinance basis according to the Subdivision and Zoning Ordinance requirements. Although the Growth Limitations Ordinance has adequate capacity over the eightyear Cycle 6 planning period for RHNA; implementation from year to year may be constraining.

Attachment pg. 3
If Measure D is found to inhibit RHNA production, the City will seek to amend its provisions within the Subdivision and Zoning Ordinances in so far as they are consistent with the Ballot Measure language.

Objectives: Amend Amend Revise the Local Coastal Program / zoning ordinance to revise allocation requirements for ADUs and JADUs from a full allocation per unit to a lesser amount,such as a partial allocation of 0.5 or an amount considered reasonable by the Cityconsistent with the voter-approved Measure D. Pass ballot measure amending the Residential Growth Limitation Ordinance and amend ordinance by mid-2025.Annually:

Allocations for the following year confirmed by City Council in December; evaluation of applications received on or before January 1 by February, evaluation and establishment of rankings if needed for Planning Commission ratification in May; City Council consideration of potential allocation transfers no earlier than September.

If Needed: Allocations for the following year confirmed by City Council in December annually; evaluation of applications received on or before January 1 by February, evaluation and establishment of rankings if needed for Planning Commission ratification in May; City Council consideration of potential allocation transfers no earlier than September. Prepare Code amendments to update the Measure D allocation process to reduce constraints on RHNA housing production. The need for a Code amendment is indicated if, by mid-cycle (end of January 2027) there are not enough allocations for ADUs, mobile/manufactured homes, and/or multi-family units including duplexes and larger projects. The Code amendment will occur by the end of July 2027, if needed.

Timeline: AmendWithin 24 months of housing element certification, submit a LCP / zoning ordinance amendment rRevisinged allocation requirements for ADUs and JADUsto the City Council by the 2025 allocation cycle (December 2024). Develop ballot measure language per statutory timelines for November 2024 election.

If Needed:Annually: On-going with multiple milestones each year Code Amendments: Within one year of identifying constraints on RHNA production revisit the preparation of a ballot measure.; Prepare revised ballot measure language for 2026 election
Responsible Party: Community Development Department, City Manager’s Office, City Attorney, Planning Commission, City Council
Attachment pg. 4
Funding Sources: General Fund
Page B-46 to B-47
Measure D and its implementation regulations present an obstacle to the development of housing necessary to accommodate the City’s fair share of regional housing needs. In Cycle 5, the Housing Element included a program (Program 2-9) that required an annual evaluation of the Residential Dwelling Unit Allocation System. With the increase in ADU development and opportunities for larger projects, including affordable housing projects, in compliance with Cycle 5’s Program 2-9, City staff informed City Council that Measure D was modestly restricting housing development in the near-term, and that more significant impacts on larger projects may be looming. In 2024, Sstaff presented potential ways to update the Measure D regulations to modestly ease these constraints and more fully prioritize affordable units over all others; however, as a ballot initiative incorporated into the City’s certified LCP, much of Measure D cannot be amended without a vote of the people and subsequent LCP amendment. Programs 6- 4 and 6-8 in the Cycle 6 Housing Element would address Measure D were it to constrain RHNA production. These programs commit the City to evaluate potential amendments to Measure D with the City’s intent to embark on amendments revisions to allocation requirements for ADUs and JADUs. These include amending Measure D through a ballot measure such that deed restricted affordable housing units, mobile homes, and/or ADUs would be exempt from Measure D.

Attachment pg. 5
The ”clean” version, without track changes, of Programs 6-8 and 6-8 as well as the text on B-46 to B-47, is as follows:

PAGE H-31
Program 6-4: Removal of Constraints
The City will continue to assess and update the Zoning Ordinance, Subdivision Ordinance, Municipal Code, Local Coastal Land Use Plan, and City procedures to remove constraints and address changes in State law, particularly regarding housing for special needs groups, including seniors, the disabled (consistent with requirements of SB 520), large families, farmworkers, and the homeless.

Key areas for initial focus include:
➢ Establishing standard criteria for CEQA exemptions in the Town Center consistent with State law and the City’s LCP
➢ Addressing as feasible, the applicability of Measure D to ADUs to free up capacity and to reduce the constraint on ADU development.
➢ Complying with fee transparency requirements, including the posting of all zoning and development standards as well as fees.
➢ Considering the efficacy of a ballot measure as described in Program 6-8.

Objectives: Initially as a subset of zoning amendments associated with Programs 1-1 and 1-2; annual monitoring to identify if subsequent updates are necessary. Comply with state transparency requirements.

Timeline: Mid-2025 for initial updates and transparency requirements; ongoing thereafter
Responsible Party: Half Moon Bay Community Development Department Funding Sources: General Fund
Page H-33
Program 6-8: Residential Dwelling Unit Allocation System Seek approval of a Local Coastal Program Amendment to revise the allocation requirements for ADUs and JADUs, from a full allocation per unit to a lesser amount, such as a partial allocation of 0.5 or amount considered reasonable by the City. The City will prepare amendments to its Local Coastal Program for Council consideration and Coastal Commission certification to increase available allocations.

Within one year of identifying constraints on ADU and JADU production due to Measure D allocations, staff will prepare a report to City Council on allocation amendments and a potential LCP amendment that would release these constraints, which could include a ballot measure.

If necessary, the City will consider the preparation of a ballot measure for the 2026 election Attachment pg. 6
with a more substantial public communications process than the timespan for the 2024 election allows, which may include revisiting the following areas:
➢ Revise to define “Downtown Area” as the area designated as the Town Center in the Certified Local Coastal Land Use Plan
➢ Exempt Accessory Dwelling Units (ADUs), including Junior Accessory Dwelling Units (JADUs) from Residential Dwelling Unit Allocation limitations.

Note: Under the current LCP and voter-approved Residential Dwelling Unit Allocation System (Measure D), allocations are confirmed by City Council in December annually; evaluation of applications received between January 1 and January 31, evaluation and establishment of rankings if needed for Planning Commission ratification in April; City Council consideration of potential allocation transfers no earlier than September.

Objectives: Amend the Local Coastal Program / zoning ordinance to revise allocation requirements for ADUs and JADUs from a full allocation per unit to a lesser amount, such as a partial allocation of 0.5 or an amount consistent with the voter-approved Measure D. .

If Needed: Allocations for the following year confirmed by City Council in December annually; evaluation of applications received on or before January 1 by February, evaluation and establishment of rankings if needed for Planning Commission ratification in May; City Council consideration of potential allocation transfers no earlier than September. Prepare Code amendments to update the Measure D allocation process to reduce constraints on RHNA housing production. The need for a Code amendment is indicated if, by mid-cycle (end of January 2027) there are not enough allocations for ADUs, mobile/manufactured homes, and/or multi-family units including duplexes and larger projects. The Code amendment will occur by the end of July 2027, if needed.

Timeline: Within 24 months of housing element certification, submit a LCP / zoning ordinance amendment revising allocation requirements for ADUs and JADUs to the City Council
If Needed: On-going with multiple milestones each year
Code Amendments: Within one year of identifying constraints on RHNA production revisit the preparation of a ballot measure.

Responsible Party: Community Development Department, City Manager’s Office, City Attorney, Planning Commission, City Council
Funding Sources: General Fund
Attachment pg. 7
Page B-46 to B-47
Measure D and its implementation regulations present an obstacle to the development of housing necessary to accommodate the City’s fair share of regional housing needs. In Cycle 5, the Housing Element included a program (Program 2-9) that required an annual evaluation of the Residential Dwelling Unit Allocation System. With the increase in ADU development and opportunities for larger projects, including affordable housing projects, in compliance with Cycle 5’s Program 2-9, City staff informed City Council that Measure D was modestly restricting housing development in the near-term, and that more significant impacts on larger projects may be looming. In 2024, staff presented potential ways to update the Measure D regulations to modestly ease these constraints and more fully prioritize affordable units over all others; however, as a ballot initiative incorporated into the City’s certified LCP, much of Measure D cannot be amended without a vote of the people and subsequent LCP amendment. Programs 6- 4 and 6-8 in the Cycle 6 Housing Element would address Measure D were it to constrain RHNA production. These programs commit the City to evaluate potential amendments to Measure D with the City’s intent to embark on revisions to allocation requirements for ADUs and JADUs.