Highland City Council
June 13, 2023

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3. Public Engagement
TheCityconductedarobustpublicoutreachprogramthatengagedabroadspectrumofthe communityandstakeholders. Stay-at-homeordersof2020and2021providedtheCitywith opportunitiesto explorenew avenuesfor publicengagementand increasedaccessfor those whoaretraditionallynotinvolvedintheplanningprocess. Outreachandformalengagement activitieswereheldvirtuallyacrossavarietyofplatforms, includinganonlinesurvey, virtual communityworkshop, stakeholderinterviews, publicreviewperiod, studysessions, andpublic hearings.

Theoutreachconductedfor the updateto theHousingElementengageda broadrangeof communitymembersandstakeholdersalike, including, butnot limitedto, publicpolicy advocatesandfacilitiesprovidingservicesto peopleexperiencinghomelessness. TheCitycast awidenettogainparticipationfromallsegmentsofHighland'sinterestedparties. The extensiveoutreachprocessconductedforthisHousing Elementupdatecontributedto asetof meaningfulgoals, policies, andprogramsthatreflectHighland'shousingneedsandthe prioritiesandneedsofallofthoseinHighland, includingthosewithspecialhousingneedsand lower -incomepopulations. Appendix F, CommunityEngagementResults, providesa comprehensivesummarydetailingtheoutreachconductedaspartof the updateto the HousingElement, and correspondingmaterials.

4. General Plan Consistency
The CaliforniaGovernmentCode requiresthat a GeneralPlanpreparedby a localgovernment containanintegrated, internallyconsistentsetof goals, policies, andprograms. Thestructure ofthisHousingElementisbuiltonthesamefoundationuponwhichallotherelementsofthe GeneralPlanwereformed. Inaddition, the HousingElement'sgoalscomplementthosefound in the other elements of the General Plan. Cohesive housing policies that are appropriate to Highland were designed through this coordination.

TheCityof HighlandwillmaintainconsistencyasfutureGeneralPlanamendmentsare processedbyevaluatingproposedamendmentsforconsistencywithallelementsofthe General Plan. Under State law, the General Plan requires an annual review and report to examineamendmentsand implementationstatus. In linewith the other GeneralPlanelements, the goalsof the Housing Elementaim to:
meetexistinghousingneeds,
planfor future growth,
protectandenhanceHighland'sneighborhoods, and
providenew housingopportunities.

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5. Goals and Policies
Goal 1: A preservedand enhancedhousingstockwithin high -quality neighborhoods.

Policy 1. 1: Facilitate neighborhood improvement and connect residents to housing rehabilitationprogramsthatofferfinancialandtechnicalassistancetolower -income households.

Policy1.2: Encouragehousingimprovement, preservation, rehabilitation, andthe replacementof substandardhousingasa meansto enhancequality of life in Highland.

Policy1.3: Supporthousingandneighborhoodqualitythroughtheenforcementof building andpropertymaintenancestandards, theeducationoflandlordsandtenants, andthe inspection of properties.

Goal 2: A diverse range and adequate supply of housing types that align with the needs of all current and future Highland households.

Policy2.1: BolstertheCity' s affordablehousingsupplythroughregulatorytoolsthat encouragethe development of and funding for quality lower- and moderate -income housing preservation and development.

Policy 2.2: Provideatransparent, timely, andcost-effectiveregulatoryreviewprocessthat facilitateshousingdevelopment opportunitiesatall incomelevels.

Policy2.3: Ensurenewresidentialandmixed -usedevelopmentsareadequatelyservedby parkandrecreation, libraries, transportation, publicsafety, andotherpublicservicesand facilities.

Policy2.4: Encouragethedevelopmentofarangeofhousingtypesintargetedareasofthe City, suchasinventoriedvacantresidentialsites, PlannedDevelopmentdistricts, Mixed - Usedistricts, specialPolicy Areasidentifiedin theLandUseElement, andareaswith access to resources and amenities.

Policy2.5: Encourageinnovationandcreativityin housingdevelopmentthrough regulationsthatincreaseflexibility in the developmentapprovalprocessandallowtheuse of construction materials and techniquesthat reducethe cost of housing and its impact on the environment.

Policy2. 6: ProvideadequateoutreachtoresidentstopreservetheCity'sfactory -built housingstockandprotectresidentsfrom displacement.

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Goal3: A City with adequatesitesand resourcesappropriate for accommodating a variety of housing types.

Policy3.1: Establishhigher -densitynodeswithincreasedhousingcapacityforavarietyof housingtypes, includinghousingfor lower -incomehouseholds.

Policy3.2: Ensureadequatecapacityforthedevelopmentof arangeof housingtypes.

Policy3. 3: Expandtheaffordablehousingstockandprovidehomeownerswithan additionalsourceof incomeby facilitatingthe constructionof accessorydwelling units.

Goal4: An affordable housingsupply that equitably meetsthe needsof extremely low-, very low-, low-, and moderate - income households.

Policy4.1: Improvequalityof life forlower- andmoderate -incomeHighlandresidentsby increasingopportunitiesforthecreationoflower -costowner -occupiedhousingtypesand byprovidinghousingassistancethroughthepromotionof homeownerandrenter assistance opportunities.

Policy4.2: Provideregulatoryandfinancialincentivesto encourageandfacilitatethe developmentof affordablesingle-family, multifamily, andmixed -usehousing.

Policy4.3: Prohibithousingdiscriminationandotherrelateddiscriminatoryactionsinall aspectsaffectingthesaleorrentalof housingbasedonrace, religion, orotherprotected classifications.

Goal5: A City with a broad rangeof housingtypesto meetthe diverse needs of all Highland residents.

Policy5.1: Providetheregulatoryframeworknecessaryto facilitatespecialhousingneeds in Highland.

Policy5.2: Encouragedevelopmentofaccessiblehousingforalllevelsofabilitythrough regulatory relief.

Policy5.3: CreateacontinuumofcareforthoseexperiencinghomelessnessinHighland throughestablishingahousingplan for homelessness, includingzoningdistrictsallowing emergencyshelters, low -barriernavigationcenters, transitionalhousing, andpermanent supportive housing.

Policy5.4: Supportinnovativepublic, private, andnonprofiteffortsin thedevelopment andfinancingof affordablehousingandhousingforthosewithspecialhousingneeds.

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6. Program Implementation
Program 1: Homeowner Rehabilitation Program
Programsto assisteligible low-incomehomeownersto repairand improvetheir homesare criticalfor community preservationand revitalizationefforts. for d through The Neighborhood PartnershipHousingServices (NPHS), a mission - based organization, offers homeowner rehabilitation opportunities through the RenaissanceHome RepairLoanProgram. Thisloanis availableto eligible householdsearningbelow 80 percentof theAreaMedianIncomeinthe InlandValleyandprovidesupto $25,000perhouseholdsto be usedfor financinghomeimprovements, includinghealthandsafetyrepairsandenergy efficiency upgrades.

The SanBernardinoCountyCommunityDevelopmentand HousingDepartmentrefers interestedresidentsin needof assistanceto the NPHSprogram and providesa digital handout withhomerepairandrehabilitationprograminformationontheirwebsite. TheCity'shousing programwebsiteprovidesdirectlinksto theseCounty'sresourcesandadditionalinformation to promotethoseopportunitiesto Highlandresidents. However, theCityrecognizestheneed for a coordinated approachto addressthe needsof homeowners beyondwhat is provided by NPHSAssuchtheCitywilltakeproactivestepsto connecteligiblehouseholdsandidentify home repair and improvement opportunities.

In addition asa memberof the CountyConsortium the Citychoosesto receiveyearly Departmentof HousingandUrbanDevelopment (HUD) grantfundsthroughtheCountyof SanBernardino (County) TheuseofthefundsreceivedfromHUDaregovernedbythe County'sConsolidatedPlanwhichestablishesgoalsthatincluderehabilitationofhousingfor personswhoareelderly, haveadisability, orareexperiencinghomelessandtherehabilitation of existingaffordablerental housingthroughhrough repair and rehabilitation projects. As a member oftheCountyConsortium, TtheCitywillcontinueto partnerwiththeCountyof San Bernardino (County) to identifyopportunitiesfor increasedfundingfor homeowner rehabilitationand the allocationof fundsfor rehabilitationthrough grant funds receivedfrom HUD. Further, theCitywillincreasecommunityawarenessofavailableprogramsandrefer interestedresidentsto the Countyaswell asdirectlyto NPHS.

Objective( s) Establish a working
relationshipwith NPHSthrough annualmeetingsto
increasethe numberof loansprovided to City
residents. Provide technical support for grant
pursuitssuchas lettersof support.

Engagein regularlyscheduledmeetingswith County
staff to discuss homeowner rehabilitation resources.

Partnerwith Countyand establishannualmeetings
to identifyfundsfor rehabilitationeffortsthrough
HUn ornnt onnortunities and to seek and apply for

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fundingthroughtheannualpursuitof Permanent
Local Housing Allocation ( PLHA) Funds and through
technical support with other grant pursuits where
opportunities arise.

Postresourceson Citywebsiteand maintainup to
date.

Timeframe Setup meetingswith Countystaffby winter 2023
and continueongoing engagementand
coordination includingannualmeetingsto identify
and allocate funds for rehabilitation through HUD
grant opportunities.

SetupannualmeetingswithNPHSto identifyand
implementpartnershipopportunitiesbyfall2023.

Maintain resources on website ongoing throughout
the planningperiod.

Responsible Agency CommunityDevelopmentDepartment
Funding Sources General Fund; HUD Grants Funds; PLHA Funds Relevant Policies 1.1, 1.2, 1.3
Fair Housing Issue Disparities in Accessto Opportunity; RECAPS, and/ or Integration/ Segregation
Contributing Factor( s) Lack of access to financial services for rehabilitation efforts.

Program/ Action Tvpe Place - based Strategies to Encourage Community Conservation and Revitalization
Prioritizeat least20 percentof homeowner
rehabilitationfundsto accessibilityupgradesneeded
for those who have disabilities, who are elderly, or
are experiencing homeless, preventing the
displacement of those with the highest need.

Establish annual meetings with NPHS to increase the
number of loansprovidedto City residentsandto
connect at least 20 eligible households with NPHS to
apply for a home repair loanthroughout the
planning period.

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Program 2: Ren Lal Multiple - Family Rental Program
hazards. AspartoftheCity'sCrimeFreeMultiple -FamilyRental -HousingProgram, allmulti- family ropertieswith four or more rentalunitsare currently requiredto complywith the program'srequirementsoutlinedinChapter5.34 (Multiple -FamilyandOtherRentalUnits) of the MunicipalCode TheCrimeFreeMultiple -FamilyRental -HousingProgramis a County partnershiprunbytheSanBernardinoCountySheriff'sDepartment. Thesheriffdepartment providesafreetrainingontenantscreeningandpropertysafetymeasuresaspartofthe program. However, asidentifiedbytheStateDepartmentof HousingandCommunity Development (HCD)1nuisanceor crimefree ordinancesor programsare commonzoning and land use barriersto affirmativelyfurthering fair housingThereforeto ensureconsistencywith fair housingrequirementsand thefederalFair HousingAct theCitywillamendthe MunicipalCode to eliminatethe provisionsof theCrimeFree Multiple -Family Rental -HousingProgramordinance. 2M • -• - -
Objective(
s) Amend the MunicipalCode to eliminatethe provisionsof theCrimeFree Multiple -Family Rental -HousingProgram
ordinancein compliancewith fair housingrequirements
and the federalFair HousingAct- 1
CaliforniaDepartmentof Housingand CommunityDevelopmentAffirmativelyFurthering Fair HousingGuidancefor All PublicEntitiesand for HousingElements, 2021. Page
18 City of HighlandDraft 6th CycleHousingElement
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Timeframe Amend the Municipal Code to eliminate Crime Free Multiple -FamilyRental -HousingProgramby December
2023.

Responsible Agency 0Police Department
Community Development Department
Funding Sources General Fund
Relevant Policies 1.1, 1.2, 1.3
Fair Housing Issue Disproportionate Housing Needs, Including Displacement Risks
Contributing Factor( s) Nuisance or crime free ordinances or programs Program/ Action Type ProtectingExistingResidentsfrom Displacement:

Eliminatecrimefree multiple -family rental -housing
program to ensure tenant protections that
affirmativelyfurther fair housingthroughout the
C
Program 3: Code Enforcement
TheCityimplementsacodeenforcementprogramto assistpropertyownersin addressing BuildingCodeandZoningCodeviolations. WhentheCityidentifiessubstandardhousing, the Cityinitiatesasubstandardlienthatprohibitsthesaleofthepropertyuntiltheconditionis mitigated. FurthertheCityconductswindshieldsurveyswithinneighborhoodsidentifiedto receiveCommunityDevelopmentBlockGrantfunding.

TheCity's2017Qualityof LifeInitiativeacceleratedproactivecodeenforcementsbyhiringtwo additional full-time code enforcementofficersand one policeofficer. TheCitywill further the Qualityof LifeInitiativebyprovidinginformationto residentsabouthowtheycanbecome codecompliantwithoutviolationsbydetailingspecificcodecomplianceissuesandoptionsfor howtheycanberesolved, targetedoutreachasdetailedintheprogramoboectives, andwill postinformationandresourcesregardingcodecomplianceandpropertymaintenanceonthe City's website.

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Objective( s) Assistwith bringing propertiesinto compliancewith the ZoningCodethroughtargetedoutreachto households
in low opportunity/lowerresourceareas', including
extremelylow-incomehouseholds. Targetedoutreach
heuld- may include annual multilingual mailers to
lower -incomepropertiesin needof repair, with
information on available resources on how issues can
beresolvedincludingimprovementsthroughthe useof
grant funds such as CDBGand PLHA funds.

Post resources for code compliance on the City's
website and connect residents to such resources when
the propertyisat riskof beingnoncompliantwiththe
Zoning Code.

Timeframe Ongoingassistanceto propertieswithcodecompliance issues.

UpdateCitywebsiteby winter 2023.

Responsible Agency Code Enforcement Division
Funding Sources General Fund
Relevant Policies
Fair Housinji Issue Disproportionate Housing Needs
Contributing Factor( s) Lack of informational resources for residents who need to bring their property into compliancewith the Zoning Code.

Pro2ram/ Action Type Place -based Strategies to Encourage Community Conservation and Revitalization
Developcodecompliancewebpage on theCity's awebsite
with resourcesand contactinformationfor assistance.

Send updatesto theCity's listserythrough
annual e- newsblasts. Develop
and implementtargeted outreachstrategies
such as themailersdescribedin theprogram
objectivesrelated to housingrehabilitationin
lower -incomeareas, and targetat least80 percent
of outreachin lowopportunity/lower resource
areas to increasecommunilyaccess to z
Refersto censustracts with "Hiah Segregationand Poverty" and " Low Resource" designationsas designatedby theCalifornia Tax CreditAllocationCommittee (TCAQ OpportunityMaps. Page 110 City of HighlandDraft 6th CycleHousingElement
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resources and avoid displacement of lower - income
households.

Track100percentof residentialpropertiesinspected
byCodeEnforcementandreportonthenumberof
residentialpropertiesthat receivedassistancefor
opportunities to proactively assist property owners.

Program 4: Inclusionary Housing
TheCity'sLandUseandDevelopmentCode'sInclusionaryHousingOrdinance'saimsto facilitatethedevelopmentandavailabilityof housingaffordableto abroadrangeof householdswith varying incomelevelsacrossthe City. The InclusionaryHousingOrdinance requiresthatall newrentalandfor salehousingdevelopmentsdedicateat least15percentof theunitsforVie - affordablehousingonoroffsite, dedicatelandthatissuitableforthe constructionof inclusionaryunits, orto payanin -lieufeethatgoesintotheCity'saffordable housingpreservationandconstructionfund. Newrentalhousingprojectsmustrentatleast10 percentoftheunitstoverylow-incomehouseholdswiththeremaining5percentof affordableunits rentedto low- or moderate -incomehouseholds. The Citywill continueto implementtheInclusionaryHousingOrdinanceandwillidentifyaffordablehousing preservation, rehabilitation, andconstructionopportunitiesfortheexpenditureofacquired funds, especiallyforfundingopportunitiesforhousingforextremelylow-incomehouseholds andhouseholdswithspecialhousingneedsin highopportunity/ higherresourceareas'.

Objective( s) Continue to implement the Inclusionary Housing Ordinance.

Allocatefundingto thepreservation, rehabilitation, and
constructionof affordablehousing, with a priority -for
projectsthat haveat least20 percentof housingset -
aside for extremely low-income households in higher
resource areaswith accessto amenities such as
recreation services education, and other
needs.
men ava+lab e
Timeframe Ongoingimplementationofordinanceandallocationof funding, when available.

Responsible Agency CommunityDevelopmentDepartment
Funding Sources InclusionaryHousingFee
3Refersto censustractswith "HighResource" and "HighestResource" designationsasdesignatedbythe CaliforniaTax Credit Allocation Committee ( TCAQ Opportunity Maps.

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Relevant Policies 2.1, 2.4, 2. 6, 4. 1, 4. 2, 5.1
Fair Housing Issue Disparities in Access to Opportunity Contributing Factor( s) Location and type of affordable housing Program/ Action Tyne NewHousingChoicesandAffordabilityinAreasof Opportunity
Ongoing implementationof InclusionaryHousing
Ordinance which requiresthat 15percentof all
newlyconstructeddwellingunitsin residential
developmentsprojectsbe offered to and soldor
rentedto extremelylow-, very low-, low- and
moderate -incomehouseholds or paymentof in -lieu
fees where applicable.

Dedicate 100percent of in -lieu housing fees
collectedfor affordablehousingdevelopmentand
programs.

Prioritizefunding for projectsthat haveat least20
percentof housingset -asidefor extremelylow-
income households in in higher resource areas with
access to amenities such as recreation, services,
education, and other needs.

Program 5: Impact Fees
A developmentimpactfee is a chargeon newdevelopmentto payfor the constructionor expansionof offsitecapitalimprovementsthat are necessitatedby and benefitthe new development. TheCityregularlyreviewsDevelopmentImpactFeesto ensureimpactcostsare appropriateto protectpublicservices. TheCitywillcontinueongoingevaluationandupdates to impactfees, asnecessaryandwillprioritizeequitableinfrastructureinvestmentsfundedby developmentimpactfeescollectedfrom newdevelopmentby prioritizing at least30 percent of improvementsin low opportunity/lowerresourceareas. Further, the Citywill focusfuture fee assessmentsto analyzefeesastheyrelateto affordablehousing, andwillevaluate opportunitiesto reducefeesfor proposedaffordablehousingdevelopments, especiallythose thatserveextremelylow-incomehouseholdsandhouseholdswithspecialhousingneeds.

Objective( s) 0
ReviewAnnually, reviewfeesafter the budget cycle.

Analyzefeesfor affordable housing, and reducefees
where feasible.

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Prioritizeat least30 percentof capitalimprovement
projectsfundedbydevelopmentimpactfeesin low
opportunity/ lower resource areas.

Timeframe Bi-annually
Ongoingprioritization of projectsthroughout the
planningperiod.

Responsible Agency Public Works
City EngineeringDepartment
Funding Sources General Fund
Relevant Policies 2. 1, 2. 2, 2. 5
Fair Housing Issue Disparities in Access to Opportunity and/ or Segregation and Integration
Contributinp- Factor( s) Theavailabilityof affordablehousingor unitsin high resource areas.

Pro2ram/ Action Type Place -based Strategies to Encourage Community Conservation and Revitalization
TheCitywill aim to equitablyinvestinfrastructure
improvementsby prioritizing30percentof capital
improvementprojectsfunded by development
impactfees in low opportunity/ lowerresource
areas.

Program 6: Density Bonus
TheCitywillreviewandamendthelocalDensityBonusProgramOrdinancetoensure consistencywithStaterequirements, andwillamendtheordinance, whereneeded, including theprovisionofabonusforstudentaffordablehousing, seniorhousing, and100percent affordabledevelopmentsto furthersupportextremelylow-incomehouseholdsand households with special housing needs.

Objective( s) UpdateDensityBonusOrdinance, consistentwithStatelaw.

Timeframe Bywinter 2023.

Responsible Agency Community Development Department
Funding Sources CommunityDevelopmentDepartmentBudget
Relevant Policies 2.1, 2. 5, 3. 1, 4. 3, 5. 1

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Program 7: Housing Choice Voucher Referrals
TheCitywillcontinueto supporttheHousingAuthorityoftheCountyofSanBernardino's HousingChoiceVoucherprogram (Section8 Vouchers) byprovidingprograminformationat CityHallandontheCity'swebsite. TheHousingChoiceVoucherprogrampaysrental subsidiesdirectlyto rentalpropertyownersto benefitlower -incomehouseholds. TheCity provideslinksonitswebsitetotheSection8HousingChoiceVoucherprogram, andrefersall inquiriesto the HousingAuthority. Further, the Citywillincreasecollaborationwiththe Housing Authorityto assistinoutreachto potentialhouseholdsandlandlordswhomayparticipatein available programs.

Objective( s) Maintain relevant resources on the City website.

Increasedcoordinationwith the HousingAuthority of
the Countyof SanBernardinothroughannualmeetings
Referinterestedresidentsand supportthe provisionof
394vouchersannual) throughout the city and facilitate
rent subsidies in high opportunity/ higher resource
areas.

TimArame Ongoing through planningperiod.

Responsible Agency CommunityDevelopmentDepartment
Funding Sources General Fund
Relevant Policies 2. 1, 4. 1, 5. 4
Fair Housing Issue Disproportionate Housing Needs and/ or Segregation and ationIntegration
Contributing Factor( s) Theavailabilityof affordablehousingor unitsin high resource areas.

Program/ Action Type Housing Mobility Strategies
Supportthe provisionof 394vouchersannuallyto
facilitate rent subsidies for low- income, very low-
income and extremelylow-income residentsin high
opportunity/ higherresourceareasandincreased
access to amenities, such as recreation, services,
education, and other needs.

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Program 8: ByRight Developmenton PreviouslyIdentified HousingSites ThosequalifyingsitesidentifiedintheSitesInventorythatwerepreviouslyidentifiedinprior housingcyclesinaccordancewiththespecificationsof HousingElementlawwillbepermitted byrightwhere20percentofthetotalunitsinthedevelopmentwillbeaffordableto lower - incomehouseholds, consistentwithAssemblyBill (AB) 1397 ( 2017). Allapplicablesitesincluded in previouscycle(s) areidentifiedbyAssessor'sParcelNumberin Table11, SitesInventory Table, of Appendix E, SitesAnalysisand Inventory (SeeSection3. 3, SitesIdentifiedin Previous HousingElements, ofAppendixE, foradditionaldetails). TheCitywillensurethatthoseuses eligibleforby -rightdevelopmentwillnotbesubjectto anyConditionalUsePermit, Planned UnitDevelopmentPermit, or otherdiscretionarylocalgovernmentreviewor approvalthat wouldconstitutea "project" asdefinedin Section21100of the PublicResourcesCode.

Objective( s) Permitqualifyingdevelopmentsby -rightin accordancewith State requirements.

Timeframe Ongoing through planningperiod.

Responsible Agency CommunityDevelopmentDepartment
Funding Sources CommunityDevelopmentDepartmentBudget
Relevant Policies 2.112.2, 2.4, 3.2
Fair Housing Issue Segregation and integration; Disproportionate Housing Needs
Contributing Factor( s) Theavailabilityof affordableunitsin a rangeof sizes.

Program/ Action Type New HousingChoicesand Affordability in Areasof Opportunity
Createthe opportunity for by -right redevelopment
of up to 1,511residentialunits* of which a minimum
of 20 percentmustbe affordableto lower -income
householdsincludingvery low- and extreme) low-
income households.

Calculatedbasedonmaximumdensitiespermittedof 30dwellingunitsperacreandpreviouslyidentifiedlower -income sitesas identifiedin Table11of AppendixE SitesAnalysisand Inventory.

Program 9: Developer Outreach and Transparency
TheCitywillmaintaincurrentinformationontheCity'swebsitethatisapplicableforhousing developmentprojectproposalrequirements, includinga currentscheduleof fees, exactions, applicableaffordabilityrequirements, allzoningordinances, developmentstandards, and annualfee reportsor other relevantfinancialreports, consistentwith the requirementsof AB 1483 ( 2019).

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Further, theCitywillcontinueto offeranoptionalpre -applicationconferenceandadvertisethe benefitsthroughthe City'swebsiteandthe "Come Hometo Highland" website. A pre - applicationconferenceallowsthe applicantto receiveinvaluablecommentsfrom City staff priorto submittingaplan, thusreducingthetimeandcostassociatedwithpermitprocessing.

Objective( s) Maintainthe City's websitewith the mostcurrent information, includingthe promotion of pre -applicationconference
opportunities to make developers aware of available technical assistance and streamline the permit application process.

Timeframe Ongoing through planningperiod
Responsible Agency CommunityDevelopmentDepartment
Funding Sources General Fund
Relevant Policies 2.1, 2.2, 4. 2, 5.1, 5.4
Program 10: Innovative and Efficient Housing
TheCityimplementsthemostcurrentCaliforniaGreenBuildingStandardsCode. Tofurther increaseenergyefficiencyin housing, theCitywillcoordinatewithSouthernCaliforniaEdison andTheGasCompanyto obtainthe latestinformationon energy -efficientbuildingtechnology andwillpostinformationontheCity'swebsiteto provideguidanceandresourcesto property ownerson energy -efficientstrategiesand retrofits.

Objective( s) Update the City's website.

Timeframe By winter 2023.

Responsible Agency CommunityDevelopmentDepartment
Funding Sources General Fund
Relevant Policies 2. 5
Program 11: Town Center, Base Line Corridor, and Victoria Avenue Corridor Policy Areas TheCityofHighlandsupportsregionaleffortsforanimprovedpublictransportationnetwork andgreaterlinkagesbetweentransportationlandusesandhousing. TheCitywillcontinueto work with the SouthernCaliforniaAssociationof Governments, SanBernardinoAssociated Governments, Omnitrans, and neighboringcommunitiesto developthe Town Center, Base LineCorridor, and VictoriaAvenueCorridor PolicyAreas. The "BaseLineImprovementProject" betweenInterstate210and Cole Streetwascompleted in 2015. The City, in conjunctionwith the SanBernardinoCountyTransportationAuthority, willcompletethewideningof BaseLine at the Interstate210interchange, with anticipatedcompletion in 2022. Additionally, through

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the CapitalImprovementsProgramfor the 2020/2021through 2024/2025 FiscalYears, the City is usingfunds from varioussources suchas MeasureI and CDBG, to carry out infrastructure improvementsthroughouttheCity, includingin lowopportunity/ lowerresourceareas. The infrastructureimprovementsincludepavementmanagement, trafficlightandsignal installation and activetransportationprogramssuchassidewalk bikeways, and transit stop improvementsTheCityisalsodevelopinga LocalRoadwaySafetyPlan (LRSP), which will includerecommendedinvestmentsandprojectsfor the BaseLinecorridor. TheCitywill prioritizeapplyingforgrantsthatwouldawardthemfundingforBaseLinecorridorprojectsas recommendedbytheLSRPandcontinueprioritizingfundsforimprovementsinlowerand moderateresourceareas. TheCitywillcontinuecoordinationto ensurethatfuturetransit alignswith the City's visionfor growth.

Objective( s) Coordinatequarterlymeetingswith appropriate agencies to coordinate land use and transportation
planningandto advocatefor the prioritizationof
projectsthat alignwith Highland's vision.

Prioritize capital improvements in lower and
moderate resource areas and oversee the
completion of the ongoing and planned projects
within the planning_ period.

Timeframe Establishquarterly meetingsby July2023.

Responsible Agency Community Development Department
Funding Sources General Fund
Relevant Policies 2. 3, 2. 4, 3.1
Fair Housing Issue Disparities in Access to Opportunity Contributing Factor( s) Theavailabilityof publictransportationandlackof private/public investmentsin specificneighborhoods,
including services or amenities.

Promram/ Action Type Place -based Strategies to Encourage Community Conservation and Revitalization
Prioritizeat least50 percentof capital
improvementsprojectsin lower and moderate
resource areas through targeted infrastructure
improvements.

Prioritize ant applications during the planninggrq
period that target funding for capitalimprovement
projectsor projectsidentifiedin the LSRPthat are
located in lower or moderate resource areas.

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Program 12: Accessory Dwelling Units
TheCityhasadoptedarevisedzoningordinancetopermitaccessorydwellingunitsandjunior accessorydwellingunitsinallzonesthatpermitresidentialuses, consistentwithStatelaw, GovernmentCode Section65852.2. The Citywill further updatethe ordinancein responseto recentchangesin Statelawand submitthe updated ordinanceto HCDfor their reviewandwill incorporateamendments, asrequiredby HCD. Further, theCitywilldevelopandadopta programthatincentivizesandpromotesthecreationofADUsthatcanbeofferedatan affordable rent for extremely low-, very low-, low-, or moderate - income households or householdswith specialhousingneeds (AB 671, 2019).

Objective( s) DevelopanaffordableADUincentiveprogramand update the City's ADU ordinance.

Timeframe DevelopaffordableADUincentiveprogramand
updatethe ADUordinanceby fall 292-6sprina 2024.

Responsible Agency Community DevelopmentDepartment
Funding Sources General Fund
Relevant Policies 2. 1, 2. 4, 3. 3, 4. 2
Program 13: Homeowner Assistance Programs
The Citywill support creativemodelsof affordableproperty ownershipand affordablehousing preservationthroughmethodssuchascommunitylandtrusts. TheCitywillconductoutreach to housingnon -profitsandadvocacygroupsto improvecoordinationandincreasepublication of how residents can coordinate with nonprofits and advocacy groups to purchase properties.

TheCitywillcontinueto provideresourcesto homeownersontheCity'swebsiteto connect Highlandresidentswithinformationon Countyhomeownerassistanceprograms. Thisincludes linksontheCity'swebsiteto resourcesonhousingcounselingservicesandotherhousing resourcesavailablethroughthe County'sCommunityDevelopmentandHousingdepartment.

Objective( s) Establisha working relationshipwith NPHSthrough annualmeetingsto developresourcesfor residentson
options for creative ownership housing models or
homeownerassistanceprograms. Offer technical
support for grant pursuitssuchas lettersof support.

Maintainresourceson Citywebsitewith annualupdates.

Timeframe Meet with NPHS or other nonprofits and community housingadvocacygroupson anannualbasis.

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Ongoing through planningperiod.

Responsible Agency CommunityDevelopmentDepartment
Funding Sources General Fund
Relevant Policies 4. 1
Fair Housing Issue Disparities in Access to Opportunity Contributing Factor( s) Access to financial services or Regional Coordination Program/ Action Type: HousingMobilityStrategies; CommunityConservationand Revitalization
Meet with NPHS or other nonprofits and community
housingadvocacygroups, on anannualbasisto
developresourcesfor residentson optionsfor
creativeownershiphousingmodelsor homeowner
assistance programs.

Program 14: Priority Services
TheCitywillcoordinatewiththeEastValleyWaterDistricttoensurethatproposed developmentsthatincludehousingaffordableto lower -incomehouseholdsareprioritizedfor theprovisionofwaterandsewerservices. TheCitywillprovideacopyoftheupdatedHousing Elementand assistwith the identificationof sitesfor prioritizationof servicesthrough the updatesto the Waterand SewerSystemMasterPlansin accordancewith SenateBill (SB) 1087 2004).

Objective( s) Maintaina databaseof existingand proposed affordable housing developments.

Engage in the Water and Sewer System Master Plan
updates.

Timeframe Submitthe HousingElementto the EastValleyWater District within 1 month of Housing Element adoption.

Responsible Agency CommunityDevelopmentDepartment
Funding Sources CommunityDevelopmentDepartmentBudget
Relevant Policies 2. 3, 2. 4
Program 15: Fair Housing Mediation
TheCitypartnerswiththeInlandFairHousingandMediationBoard (IFHMB) toprovidefair housingservicesforitsresidents. ThefairhousingservicesprovidedbytheIFHMBinclude

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providinginformation, investigation, education, conciliation, and/or referralofhousing discriminationcomplaintsfree of chargeto individuals. It also involvesfair housingworkshops thatareofferedyear-roundto educatehousingproviders, tenants, homeowners, andfinancial andlendinginstitutionson the keyaspectsof fairhousinglaw. Further, IFHMB'smediation departmentprovidesinformationto landlords, tenants, mobilehomeparkowners, andmobile homeresidentsregardingtheirrightsandresponsibilitiesundertheCaliforniaLandlordand TenantLaws, and facilitatesnegotiationsbetweenpartiesin housing -relateddisputes. TheCity willmaintainthispartnershipandwillprovideinformationregardingavailablefairhousing servicesontheCity'swebsite. Additionally, theCitywillprovideannualstafftraininason available resources and steps to take in the event of a fair housing inquiry or complaint to ensurethat residentsareprovidedwithtimelyservicesandreferralsto IFHMB.

Objective( s) Continueto maintaininformation on the City'swebsiteand send updates to residents through annual e- news blasts to the City's listserv. Ensurethat content isculturally
appropriate and offered in multiple languages.

Continueto partnerwith IFHMBand coordinateannuallyto
gather and analyze local data to inform fair housing
prioritiesand opportunities.

Provide annual staff traininas on how to refer complaints and inquiries to IFHMB.

Timeframe. Ongoing through planningperiod.

Responsible Agency CommunityDevelopmentDepartment
Funding Sources General Fund
Relevant Policies 2. 6, 4. 3
Fair Housin$ Issue FairHousingEnforcementand OutreachCapacity ContributinIZ Factor( s) Lackof localfair housingoutreachand marketingof resources.

Prol! ram/ Action Type ProtectingExistingxistingResidentsfrom Displacement Providemultilingualupdatesto the City's emaillistseryon fair housingresourcesandmaterialsthroughannuale-newsblasts.

Conduct annual staff traininas on available resources and steps to take in the event of a fair housing inquiry or complaint to ensurethat residentsare provided with timely referralsto IFHMB.

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Program 16: Affordable Housing Preservation Program
No affordableunitswithin Highlandareat riskof conversionto marketrateduring the 2021- 2031planningperiod. Therefore, theCity'shousingpreservationeffortsarefocusedon assistinghomeownerswhomaybeatriskofforeclosure. Subprimelendingpracticeshave resultedin numerousforeclosuresthroughout Highland. TheCityseeksto reduceforeclosures byprovidingeducationalinformationtoitsresidents. TheCitywillprovideeducational homeownershipbrochuresandreferconcernedhomeownersandhomebuyersto nonprofits suchasNPHSandthe HomeownershipPreservationFoundation. Informationwillbe made availableat City Halland on the City'swebsite.

Additionally, theCitywillcontinuetomonitorexistingpubliclyassistedaffordablehousingand providetechnicalassistanceforthosethatmightconverttomarketrentsanddisplace extremely low-, very low-, low-, and moderate - income tenants.

Further, theCitywillcontinueto referresidentstotheCounty'swebsiteforinformationon housingadvocacygroups, publicagencies, andnonprofitorganizations.

Objective( s) Continueto maintainup-to-dateinformationontheCity's website.

Maintain and monitor a list of affordable housing
developmentsand yearof possibleexpirationof deed -
restrictionor other assistancefor 100percentof lower -income unitsincludingextremelylow-incomeunitsintheCity.

Establisha working relationshipwith NPHSthrough annual
meetingsto ensurethe continued preservationof affordable housin .

Timeframe Ongoing through planningperiod.

Responsible Agency CommunityDevelopmentDepartment
Funding Sources General Fund
Relevant Policies 1.1, 1.2, 1.3, 2.1
Fair Housing Issue DisproportionateHousingNeeds, IncludingDisplacementRisks Contributing Factor( s) Availabilityof affordableunitsin a rangeof sizes Program/ Action Tvae Protecting Existing Residents from Displacement Maintain and monitor a list of affordable housing
developmentsand year of possibleexpirationof deed -
restrictionor other assistancefor 100percentof lower -
incomeunits includingextremelylow-incomeunitsin the
aty—

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Program 17. Housing for Persons with Disabilities
Reasonable Accommodation Procedures —
TheCityhasadoptedareasonableaccommodationprocedurethatprovidesaprocessby whichrelieffrom landuse, zoning, or buildinglaws, rules, policies, practices, and/or procedurescanbealleviatedforthosewithdisabilities, includingpersonswithdevelopmental disabilities. TheCitywillamendtheexistingreasonableaccommodation'scriteriarelatedto potentialimpactonsurroundingusesandphysicalattributesofthepropertyandstructureto ensureconsistencywithfairhousingrequirementsandthefederalFairHousingAct. The amendments will ensure that the findings for approval of a reasonable accommodation requestdo notposepotentialconstraintsforpersonswithdisabilities. TheCitywillpromote this procedureby providing information on itswebsitethat iseasilyaccessible.

Also, theCitywillcontinueto provideinformationalmaterialsonSouthernCaliforniaEdison's CustomerAssistanceProgramatCityHallandontheCity'swebsite. Theprogramisdesigned to helppersonswithdisabilities, includingdevelopmentaldisabilities, maintainlowenergyuse.

Theprogramalsotargetslow-incomehouseholds, olderadults, andnon -English-speaking customers.

Further, theCitywillcontinueto referindividualsandfamilieswithdevelopmentaldisabilitiesto the InlandRegionalCenterin SanBernardino. The InlandRegionalCenteristhe largest nonprofit, State -fundedsocialservicefacilityinthe Statethatfocuseson personswith developmentaldisabilities. TheCitywillprovidea linkto the InlandRegionalCenter'swebsite on the City's website.

Additionally, to furtheropportunitiesforpersonswithdisabilitiesandolderadultswithvarying levelsof ability, the Citywill promote increasedaccessibility byconnectingresidentsanddevelopersto resourceson increasingin -homeaccessibility.

Resourcesmayincludeinformationondesignfeaturesthatareaccessibleandsafeforall peopleregardlessofagesizeability, ordisability, allowingresidentstoageinplaceand resideinthe neighborhoodof theirchoice. TheCitywillpostmaterialson itswebsiterelatedto homeretrofitguidanceandaccessibilityin accessorydwellingunits.

Family" Definition —
Family" definitionsinzoningcodescandirectlyimpacthousingchoicesforpersonswith disabilities
tG be related have excli sOE) »r, El#eCtc n- Thecity will reviewitsdefinition of "Family" e to ensure it is a barrier - free definition
consistantej with fair housingrequirementsand the federal FairHousingAct, and provide a broadeneddefinitionthatprovideszoningcodeoccupancystandardsspecificto unrelated adults.

Page122 City of Highland Draft 6th Cycle Housing Element -38-
Objective( s) Update the City's website to provide accessibility resources.

If necessary, -amendthe City's reasonable
accommodationsprocedureand Zoning Code's
definitionof "Family" to ensureconsistencywithfair
housing requirementsandthe federal FairHousingAct.

Timeframe Updatewebsitewith accessibilityresourcesby winter 2023.

Amend reasonableaccommodationsprocedureand
Zoning Code definition of " Family' by summer 2024.

Responsible Agency Community DevelopmentDepartment
Funding Sources General Fund
Relevant Policies 4. 3, 5.1, 5. 2, 5.4
Program 18: Group Homes and Residential Care Facilities Per HCD's technical advisory' grouphomesreferto anyhousingsharedbyunrelatedpersons withdisabilitiesthatprovidepeerandothersupportfortheirresidents' disabilityrelatedneeds and in which residentssharecooking dining and living areas and may, in somegroup homes, participateincookinghousekeepingandothercommunallivingactivities. Grouphomesare. furtherdefinedin HCD'stechnicaladvisory' by statelicensingrequirements. Grouphomesthat donotprovidelicensableservicesanddonotrequirestatelicensestooperatearecategorized asunlicensedgrouphomesTheseincludeforexamplegrouphomesthatprovidepeer support and limited servicesto residents but not the more extensive care and supervision that requiresobtainingalicenseunderstatelaw. Grouphomesthatdorequirestatelicensesto operate suchasthoseservingchildren are categorizedaslicensedgroup homes, and include varioussubcategoriesofcommunitycareresidentialfacilitiesdefinedinHealthandSafety Code (Sections1500et seq. and 1569et seg.).

LicensedGrou.g Homes/ ResidentialCareFacilities —
TheHealthandSafetyCoderequiresjurisdictionsto allowlicensedgrouphomesservingsixor fewerpersonsinsingle-familyresidentialzonesandto treatthemthesameassingle-family homes TheCity's Zoning Codedefinesall categoriesof licensedgroup homesas "Residential Care Facilities." Tocomplywiththe HealthandSafetyCodeandstatehousinglawsregarding licensedgrouphomes, TtheCitywillupdatetheZoningCode'sdefinitionsandpermitting processesto differentiatebetweenResidentialCareFacilities (licensedgroup homes) servingsix orfewerresidentsandthoseservingsevenor moreresidents. Additionally, theCitywilleFeate 4CaliforniaDepartmentof HousingandCommunityDevelopmentGroupHomeTechnicalAdvisory, 2022.

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permitResidentialCareFacilities (licensedgrouphomesAeseservingsixorfewerpersons -by min allsingle-familyzonessubjectonlytothegenerallyapplicablelawsthatapplytoall single-familyresidencesinaccordancewiththeWelfareandInstitutionsCodeandHealthand SafetyCodeSeetieR5116and permi" those servingsevenor more in at leastone zone without discretion.

GroupHomesthat Do Not ProvideLicensableServices —
Tocomplywithstatehousinglawsregardingunlicensedgrouphomes, jurisdictionsmust permitallunlicensedgrouphomesthatberateassingle-familyresidencesandthatdonot provide licensableservicesin single-familyneighborhoods subjectonly to the generally applicablenondiscriminatoryhealthsafety, andzoninglawsthatapplyto allsingle-family residencesAssuchtheCitywillupdate theZoningCodeto permitunlicensedgrouphomes insingle-familyzonessubjectto thesamelawsthatapplyto allsingle-familyresidencesto complywith statehousinglaws.

Objective( s) TheCitywill updatethe Zoning Codeto di4erarrrcreRtitia'te between ReSideRti l QFe Facilities sePARn "iv r, r fewer r[?
Pi1Rgseven 9F M9Fe resideRtS. FesideRts Rd Se
create separate definitions and
permitting processesfor ResidentialCareFacilities
licensedgroup homes) servingsixor fewer residents
and those serving seven or more residentsthe twe
t„
p
f r sideRti-, l r Fe faEblitie and permit those serving six or fewer personsin all single-family zonessubjectonly
to the generallyapplicablelawsthat applyto allsingle-
family residencesand permit those servingsevenor
more in at least one zone without discretion.

TheCitywill updatethe Zoning Codeto permit
unlicensedgroup homesin single-familyzones, subject
onlyto the generallyapplicablehealthsafety, and
zoninglawsthatapplyto allsingle-familyresidencesin
accordance with state housing law.

Timeframe By winter 2023.

Responsible Agency Community DevelopmentDepartment
Funding Sources General Fund
Relevant Policies 2. 4, 3. 1, 3. 2, 5. 1

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Program19: EmergencyShelters, TransitionalHousing, PermanentSupportiveHousing, and Single Room Occupancy
TheCitywillupdaterelevantsectionsoftheZoningCodeto assistinthedevelopmentof housingforthosewithspecialhousingneedsandextremelylow-incomehouseholdsandto ensureconsistencywithStatelawasit relatesto supportivehousing, emergencyshelters, and transitionalhousing, asfollows:

Permitsupportivehousingby -rightinresidentialzonesthatpermitmultifamilyusesand mixed -useszones that allow residential uses in accordance with AB 2%2 ( 2018).

Permitemergencysheltersby -rightin at leastonezoneandensurethatparking requirementsaccommodatethe staffworking in the shelterand do not require more parkingthanotherresidentialor commercialuseswithinthesamezonein accordance with AB 139 ( 2019).

Permittransitionaland supportivehousingasa residentialusein the samemanneras other residentialusesin the samezone subiectonly to those restrictionsthat applyto other residentialdwellingsof the sameL/pein thesamezone pursuantto GovernmentCode section 65583( c)( 3).^! ^^^ `""+ h
hR 12Q / 7( 11Q\ Additionally,
the Citywill amendthe ZoningCode to identifya processby whichsingle -room occupancies ( SRO) can be permittedto furtherincreasehousingopportunitiesfor extremelylow- incomehouseholds. Objective(
s) Amend the City's ZoningCode as detailedabove and in conformance with State law. Timeframe
By winter2023. Responsible
Agency Community DevelopmentDepartment Funding
Sources General Fund Relevant
Policies 5. 1, 5. 3 Combined
with Program13 and21 ems=
M. A.- -- PMW
oil e--
WMA&
TARMWAW120 - Page
125 City of HighlandDraft 6th CycleHousingElement
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Program 20-1: Mobile Home Preservation
Consistentwiththe provisionsof GovernmentCodeSection65863.7, the Cityshallrequirethe submissionof a reportdetailingtheimpactsof anyproposedconversionof anexistingmobile homepark. Thereportshallincludea replacementandrelocationplanthat mitigatesthe impactupontheabilityofthedisplacedresidentsofthemobilehomeparkto beconvertedor closedto findadequatehousinginamobilehomepark, consistentwiththerequirementsof Statelaw. Thereport, aswellasanyadverseimpactsonthe housingsupply, lower -income households, andon displacedpersons, shallbeconsideredbeforethe changeof usecanbe approved. Further, theCityshallrequirethereplacementofanylostunitsto ensurenonetloss oftheCity'sexistinghousingstockthatisaffordableto lower -incomehouseholds, including extremelylow-incomehouseholds.

Objective( s) Require a report for each proposed conversion or closure.

Consider the findings of the report, as well as the
impacton the existinghousingsupply, lower -income
households, and displaced persons.

Timeframe Ongoing through planningperiod.

Responsible Agency CommunityDevelopmentDepartment
Funding Sources General Fund
Relevant Policies 1.2, 2. 6

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Program 212: Collaborative Partnerships
TheCityhasadministeredfundsforavarietyof affordablehousingneeds, suchasconstruction costs, rent subsidies, and home improvementgrants. Working in collaborationwith other entitieswillhelptheCity'sresourcesgofurtherandmeettheneedsof additionallower -income households, includinghouseholdswithspecialhousingneedsandextremelylow-income households. TheCitywillcontactlocalaffordablehousingserviceprovidersonayearlybasisto dice ss paFtRerin identi partnershipopportunities, andwillcontinueto seekfinancial assistance from other agencies.

InadditiontheCitywillcollaboratewithaffordablehousingdeveloperWakelandHousingand DevelopmentCorporationto supportthe developmentof a newaffordableseniorrental housingpro6ectTheprojectwillcontain89 newaffordableunits includingunitsaffordableto extremelylow-income very low-income and low-incomehouseholds, and one manager's unit TheCitywillill supportthe developmentof theextremelylow-, very low-, and low- income unitsthroughanapproximately $4 5 milliongrantfromtheCityof HighlandHousingAuthority HighlandHousingAuthority) providedcertainconditionsaremet, andagroundleasefor the long-termleaseoftwo HousingAuthorityownedparcelsasfurtherdetailedin Program30.

Objective( s) Continue outreach to local affordable housing service providersto identify partnershipopportunities, and
offer funding application assistance.

Support the development of 89 new affordable rental
unitsthrough a HousingAuthority grant and long-term
ground lease.

Update the City s web its
Timeframe Ongoing outreachthroughout the planningperiod.

Meet with NPHS or other nonprofits and community
housingadvocacygroups, on anannualbasis.

Committo providing a HousingAuthority grant and
long-termgroundleasebyspring2024thatwill
facilitate the development of 89 new affordable rental
unitsto be completed in the planning period.

Responsible Agency Community DevelopmentDepartment
Funding Sources General Fund
Relevant Policies 4. 1, 5. 4
Fair Housing Issue Disparities in Accessto Opportunity

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Contributing Factor( s) Accessto financial services and lack of regional cooperation.

Pro2ram/ Action Tyne HousingMobilityStrategiesandNewHousingChoicesand Affordabilityin Areasof Opportunity
Identifv partnership opportunities and meet with
affordablehousingserviceprovidersand
developers nonprofit housing organizations, or
local housina advocacy groups in the area on an
annual basis.

Support the development of 89 new affordable
senior rental units including units affordable to
extremely low- income very low- income, and low-
incomehouseholds in the planning period.

Provide an approximately $ 4.S million grant from
theCityof HighlandHousingAuthority (Highland
HousingAuthority) andagroundleasefor the long-
term leaseof two HousingAuthority owned parcels
for the development of extremely low-, very low-,
and low- income rental units.

Program 223: Lot Consolidation Incentive
TheCitywillprovidea permitexpediteincentiveforlotconsolidationformultifamily developmenton sitesidentifiedinthe HousingElementashavingthe potentialto accommodatelower- or moderate -incomeunits, includingthosesiteswithpotentialfor extremelylow-incomedevelopmentanddevelopmenttomeettheneedsofthosewithspecial housingneeds, andwillconsiderexpandingthisincentivetoalllower -incomeandmixed - income residential and mixed - use developments.

Objective( s) TheCitywillamendthecodeto incentivizelot
consolidationon specifiedsites, providing expedited
developmentpermit reviewthrough priority processingfor
projects utilizinglot consolidation.

Timeframe By winter 2023.

Responsible Agency CommunityDevelopmentDepartment
Funding Sources General Fund
Relevant Policies 2.1, 2.4, 4. 2

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Fair Housing Issue Segregation and Integration and/ or Disproportionate Housing Needs Including Displacement Risks
Contributing Factor( s) Theavailabilityof affordable unitsin a rangeof sizesand location and type of affordable housing due to historical land use and zoning laws.

Program/ Action Type NewHousing_ ChoicesandAffordabilityin Areasof Opportunity
Provide an expedited development permit review
throughpriorityprocessinginexchangefor lot
consolidation for all qualifying* affordable
multifamily development pro6ectson moderate- or
lower -income sites (including sitesto accommodate
extremelylow-income units) that are identified in
the Housing Elementashavingthe potentialto be
consolidated as a single site*-.

Targeta 20 percent reductionin processing
timelinesfor qualifying lot consolidation
developments.

Seesites1-64inTable11of AppendixEfor sitesidentifiedto accommodatelower- or moderate -incomeunits. Eligiblesitesidentified ashavingthepotentialtobeconsolidatedasasinglesitearedenotedbyanumberandaletterintheirSiteID.

Program 234: Annual Progress Reports
TheCitywillcontinueto reportannuallyon theCity'sprogresstowardits8-yearRHNA housingproductiontargets, theremaininghousingcapacity, andtowardtheimplementation oftheprogramsidentifiedintheHousingElementto thelegislativebody, theOfficeof PlanningandResearch, andthe Department.of HousingandCommunityDevelopmentin accordance with the requirements of AB 879 ( 2017).

Objective( s) Trackhousingproduction, remainingcapacity, and program progress.

Submit adopted Annual Progress Reports ( APR)
annuallyby April 1st.

Timeframe Ongoing through planningperiod with annualreports.

Responsible Agency CommunityDevelopmentDepartment
Funding Sources CommunityDevelopmentDepartment
Relevant Policies 3. 2

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Program 245: No Net Loss
TheCitywilluseitsdevelopmentpermitdatabaseto monitordevelopmentactivity, proposed rezones, and identifiedcapacityto ensureadequateremainingcapacityis availableto meet anyremainingunmetshareoftheRHNAforallincomelevelsthroughouttheentiretyofthe planningcycle, consistentwithno -net -lossrequirementsasrequiredunderSB166 (2017).

If, atanytimeduringtheplanningperiod, adevelopmentprojectresultsinfewerunitsby incomecategorythanidentifiedintheSitesInventory (AppendixE, SitesAnalysisand Inventory) for thatparcelandtheCitycannotfindthatthe remainingsitesinthe Housing Elementare adequateto accommodatethe remainingRHNAby incomelevel, the City will, within 180days, identifyand makeavailableadditional adequatesitesto accommodatethe remaining RHNA.

Objective( s) Amend staffproceduresto ensureall developmentproposals and rezoneproposalsare reviewedagainstthe capacity
identifiedfor sitesin the SitesInventory (Appendix E).

Developa methodology for trackingremainingcapacity.

Timeframe Trackingisongoingandamendmentsto procedureswill be implementedby winter 2023.

Responsible Agency CommunityDevelopmentDepartment
Funding Sources Community Development Department
Relevant Policies 3. 2
Program 256: Fair Housing Outreach
TheCitywillcontinuetocontributeto theregionalevaluationofdiscriminatoryhousing practicesbyparticipatingintheCountyof SanBernardinoAnalysisof Impedimentsto Fair Housing. TheAnalysisof Impedimentsto FairHousingidentifiesregulationsor practicesthat maycreateanunequalhousingenvironmentinSanBernardinoCountycommunities. In additionto participatingandupdatingtheAnalysisof Impediments, theCitywillevaluatethe needto establishan Ad Hoc FairHousingcommitteeto provide policyrecommendationsto guidepoliciesandprogramsin a mannerthatfurthersfairhousing.

Further, theCitywilladministerallprogramsandactivitiesrelatedto housingandcommunity development in a mannerto AffirmativelyFurtherFairHousingby administering_ public investmentsandprogramsin a mannerthat promotesequityandaffirmativelyfurthering fair housing. Examplesinclude the
inclusionof a statementof fair housingandequityto ensuretransparencyin decisionson all staffreportsfor PlanningCommissionandCityCouncilhearings. Thisalsoincludesthe evaluationof fair housingandequitycriteriain the identificationandprioritizationof capital improvementsto ensureinvestmentsare promoting increasedaccessto resourcesand investment in communities with the greatest need.

-46-
Objective( s) Coordinateannualmeetingswith Countyof San Bernardino and fair housing agencies.

Continueto participatein the Analysisof Impedimentsto
Fair Housing Choice.

Evaluate the need for an Ad Hoc Fair Housing Committee
when updating the Analysisof Impediments.

Implementa procedurethat promptsfair housing
administration for all housing and community
development decisions,7including capital investments.

Timeframe By winter 2023.

Updateto the City's Analysisof Impedimentsevery3 to 5
years.

Responsible Agency CommunityDevelopmentDepartment/ HousingAuthority Funding Sources CommunityDevelopmentDepartment/ HousingAuthority Relevant Policies 4. 3, 5. 4
Fair Housing Issue FairHousingEnforcementand OutreachCapacity Contributing Factor( s) Lack of local and regional resources to support strong - enforcement.

Program/ Action Type HousingMobility Strategiesand ProtectingExistingResidents from Displacement
Implementa procedurethat prompts fair housing
administration for all housing and community
developmentdecisionsincludingcapitalinvestments
to ensureinvestmentsare promoting increasedaccess
to resources and investment in communities with the
greatestneed.

Program 26-7: Replacement Requirements
TheCitywillmandatereplacementrequirementsconsistentwiththeHousingCrisisActof2019 forproposedhousingdevelopmentsonsitesthatcurrentlyhaveresidentialuses, orwithinthe past5yearshavehadresidentialusesthathavebeenvacatedordemolished, thatareorwere subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to personsandfamiliesof loworverylowincome, subjectto anyotherformof rentor price control, or occupiedbylow- or verylow-incomehouseholds.

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Objective( s) Amend staff proceduresrelatedto the reviewand issuanceof demolition and development permits.

Enforce replacement requirements in accordance with
Government Code Section 66300.

Timeframe Amend staff proceduresby winter 2023, continue ongoing replacementrequirementsthroughout the
planningperiod.

Responsible Agency Community DevelopmentDepartment/ HousingAuthority Funding Sources Community DevelopmentDepartment/ HousingAuthority Relevant Policies 1.2, 2. 1, 3.2
Program 278: Low Barrier Navigation Centers
Low -BarrierNavigationCentersarehousingfirst, low -barrier, service -enrichedsheltersfocused onmovingpeopleintopermanenthousingthatprovidestemporarylivingfacilitieswhilecase managersconnectindividualsexperiencinghomelessnessto income, publicbenefits, health services, shelter, and housing. The Citywill amendthe Zoning Codeto permit the development of Low -Barrier Navigation Centers as a use by -right, without requiring a discretionaryaction, inmixed -useand non-residentialzonesthatpermitresidentialuses, consistent with AB 101(2019).

Objective( s) Amend the Zoning Code, consistentwith State requirements.

Timeframe By winter 2023.

Responsible Agency Community DevelopmentDepartment/HousingAuthority Funding Sources Community DevelopmentDepartment/HousingAuthority Relevant Policies 5. 1, 5. 3
Program 289. Affordable Housing Streamlining
TheCitywill aRieRelitSZeRiRgCede }^ provideanaffordablehousingstreamlinedapproval processinaccordancewithStaterequirementsforqualifyingdevelopmentproposalsunderSB 35 (2017) streamlining. The City will -.momrevise its internal permitting procedures to ensure thatstaffhasclearproceduresanda streamlinedministerialapprovalprocessfor responding to SB35proposalsandforprioritizingqualifyingSB35housingdevelopmentsconsistentwith State law.

-48-
Objective( s) Processproposalsfor SB35 permit streamlining consistent with State law.

Developclearproceduresanda streamlinedministerial
approval rocess to assiststaff in responding to SB35
proposalsand permit streamlining.
with State requireMeRtSi-.

Timeframe SB35processingandstreamliningavailabilityto be ongoing through planning period.
n YYI/lYl/"IYYeRt tO take p! Internal permitting
proceduresand staff processby winter 2023.

Responsible Agency Housing Authority
Funding Sources Housing Authority
Relevant Policies 2. 1, 2. 2, 4. 2
Program 293A: Objective Design Standards
TheCitywillincreasetransparencyandcertaintyinthedevelopmentprocessthroughobjective designstandards. AnynewdesignstandardsdevelopedandimposedbytheCityshallbe objectivewithoutinvolvementof personalor subjectivejudgementbya publicofficial, and shallbeuniformlyverifiablebyreferencetotheCity'sregulationsinaccordancewiththe requirementsof the HousingCrisisActof 2019. Additionally, the Citywillamendthe existing designreviewprocessto removesubjectivecriteriaandstandardsandensureobiectiveDesign Guidelines and Standards for residential rojects requiring a Minor or Major Design Review.

Thesestandardswillbeequallyappliedandcontainestablishedexteriortreatments, architecturalelements height massingand correspondingcolor charts. Thesewill be available to aprojectproponentuponinitialcontactwithCityStaffto helpensurereasonable expectations and quick processing.

Objective( s) . Monitor Zoning Code amendments to ensure any new design standards are objective.

AmendZoning Codeto removesubjectivedesign
review criteria and ensure an objective design review
processfor residential rojects requiring minor or major design review.

Timeframe • Ongoing through planning period.

Amend existing design review process by December
2023.

-49-
Responsible Agency CommunityDevelopmentDepartment
Funding Sources Community Development Department
Relevant Policies 2. 2, 2. 5, 4. 2
Program 301: Surplus Lands
TheCitywillcontinueto identifyandprioritizelocalsurpluslandsavailableforhousing developmentaffordableto lower -incomehouseholds, includingextremelylow-income householdsand householdswith specialhousingneeds, and report on theselandsannually throughHousingElementAPRsinaccordancewiththerequirementsofAB1486 (2019).

In addition the Citywill supportthe developmentof 89 new affordableseniorrental units, includingunitsaffordabletoextremelylow-incomeverylow-income, andlow-income householdson anapproximately376-acretwo -parcelsiteownedbythe HighlandHousing Authority. Thesite which wasdeclaredto be surplusland and notifiedfor availabilityin December2021in accordancewith the SurplusLandAct will be leasedto an affordable housingdeveloperthrougha Iona -termgroundleasewitha belowfairmarketvaluerentof approximatelyonedollarperyear, or asdeterminedintheDispositionandDevelopment AgreementTheCitywillfurtherfacilitatethedevelopmentof extremelylow-, very low-, and low-incomeunitson the surplussitethrough a grant from the HighlandHousingAuthority, as further detailedin Program21 Asof January2023 the City isin an ExclusiveNegotiation Agreementwith the developer, and will act diligentlyduring the negotiation period to move the projectforwardandfacilitatedevelopmentof the unitsaffordableto extremelylow-, very - low, and low-incomeseniorhouseholdsduring the planning period.

Further, theCitywillcontinueto identifyadditionalopportunitiesto facilitatethedevelopment of affordablehomes includingthose affordableto extremelylow-income households, on surpluslocalpubliclandutilizingmechanismssuchaslanddonations, landsaleswith significantwrite -downs or below -marketland leaseswith a priority on surplusland in high opportunity/ higher resource areas.

Objective( s) • Identifyand tracksurplusCity -owned sites.

Reporton surpluslandsannuallythrough Housing
Element APRs.

Facilitate the development of 89 new affordable
senior rental units on a surplus site, including units
affordableto extremelylow-, very low-, and low-
income households through a long- term ground
lease with a below fair market value rent.

Identifyopportunitiesto facilitatethe development

-50-
utilizing mechanisms such as land donations, land
sales with significant write - downs or below - market
land leaseswith a priority on surplusland in high
opportunity/ higher resourceareas.

Timeframe Annually, throughoutthe planningperiod.

Facilitate the development of 89 new affordable
senior rental units on a surplus site to be completed
within the planningperiod.

Ongoingthroughoutthe planningperiod.

Responsible Agency CommunityDevelopmentDepartment
Funding Sources CommunityDevelopmentDepartment
Relevant Policies 2. 4, 3. 2, 4. 2
Fair Housing Issue Segregation and Integration
Contributing Factor( s) Location and type of affordable housing Program/ Action Type HousingMobilityStrategies; NewHousingChoicesand Affordability in Areasof Opportunity
Facilitate the development of 89 new affordable
senior rental units on a local surplus site, including
unitsaffordableto extremelylow-income, very low-
income and low- income households through a
long-termgroundleasewitha belowfair market
value rent.

Identifyopportunitiesto facilitatethe development
of affordablehomeson surpluslocalpublic land
utilizingmechanismssuchaslanddonations, land
sales with significant write - downs, or below - market land leaseswith apriority on surplusland in high
opportunity/ higher resourceareas.

Program 312: Increased Transparency
TheCitywillmaintaininformationontheCity'swebsitethatisapplicableforhousing developmentprojectproposalrequirements, includingacurrentscheduleoffees, exactions, applicableaffordabilityrequirements, allzoningordinances, developmentstandards, and annualfee reportsor other relevantfinancialreportsin accordancewith the requirementsof AB 1483 ( 2019).

Page135 City of Highland Draft 6th Cycle Housing Element -51-
Objective( s) Ensureall relevantinformationis provided on the City's website.

Continue to update information as changes are made
and as it becomes available.

Timeframe Ongoing, throughoutthe planningperiod.

Responsible Agency CommunityDevelopmentDepartment
Funding Sources CommunityDevelopmentDepartment
Relevant Policies 2. 4, 3. 2, 4. 2
Program 323: Reduced Parking Requirements
Largeparkinglotsassociatedwithreligiousinstitutionsprovideopportunitiesforpartnerships thatfacilitatethedevelopmentof housingfor vulnerablepopulations, includingextremelylow- income householdsand thosewith specialhousingneeds. The Citywill ensurethat appropriate parkingreductionsapplyto anydevelopmentproposalsthatwouldeliminatereligious -use parkingspacesinexchangeforhousingdevelopments, inaccordancewiththerequirementsof AB 1851 ( 2020).

Objective( s) AmendtheZoningCodeto identifya processbywhich parkingrequirementscanbe reducedfor religious
institutionsin exchangefor housingdevelopment.

Timeframe Bywinter 2023.

Responsible Agency CommunityDevelopmentDepartment
Funding Sources CommunityDevelopmentDepartment
Relevant Policies 2. 5, 3. 2, 4. 2, 5.4
Program 33 • Strategically Enhance Access to Areas of Opportunity WhiletheCityhasidentifiedanadequatesupplyoflandtofullyaccommodatetheCity's6th CycleRHNAtheCitywillprovideanadditionalbufferofsitesto mitigatelandusepatternsof accessto resourcesand opportunities and patternsof segregationand integration. TheCity seeksto addressthesepatternsbyprovidingarangeof housingopportunitiesinthe City, includingforresidentswithlowandmoderateincomesolderadultspeoplewithdisabilities, large families female -headed households with children and people experiencing homelessnessTomakeadequateprovisionfor the housingneedsof allsegmentsof the community, theCitymustensureequalandfairhousingopportunitiesareavailableto all residentsTheCitywillcontinueto advancefairhousingthroughcontinuedimplementationof the following actions:

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Allowingforthedevelopmentof multifamilyresidentialusesacrosstheCitycanincrease opportunities for existing and future residents to live where they choose. To increase geographicequityandopportunitiesforresidentstheCitywillidentifyandrezoneareas appropriatefor medium and high residentialdensities specificallyin moderate- or higher resource areas based on the California Tax Credit Allocation Committee ( TCAC) OpportunityAreasinAppendixDOpportunityMaporotherappropriatedatasources, with consideration for accessto amenities infrastructure and/ or public transit. The rezone willincreasenewhousingchoicesaffordability, andupwardmobilitythroughaccessto opportunityandintegrationinhistoricallysegregatedareasofaffluence. TheCitywill rezoneat least5 total acresin moderateand high opportunity/ higher resourceareas.

Rezonedsiteswillpermitamaximumdensityof 30dwellingunitsperacreandwillhave adequate access to infrastructure.

Beginthe rezoneprocessby December2023byconductingoutreachanalyzingopportunities, andcompletinga CEQAanalysisto finalizethe rezoneby December2025. Withinoneyearof completingtherezoneworkwithpropertyownersto proactivelyidentifyprimesites, notify affordablehousingdevelopers or providetechnicalassistancefor affordableprojects.

Objective( s) Rezonesitesto increasemultifamilyresidentialoptions in moderate- and high opportunity/ higher resource
areas Rezoned sites must meet the following criteria:
a) located in moderate- or high opportunity/ higher
resource areas', based on the TCAC Opportunity
Maps or other appropriate data sources;
b) combined area of at least 5 acres;
c) maximumdensityof 30 dwellingunits per acre.

Timeframe Beginthe rezoneprocessby December2023by
conductingoutreachanalyzingopportunities, and
completinga CEQAanalysisto finalizethe rezonebX
December 2025.

Withinoneyearof completingthe rezone, workwith
property ownersto proactivelyidentify prime sites,
notify affordablehousingdevelopers, or provide
technical assistancefor affordable projects.

Responsible Apency CommunityDevelopmentDepartment
Funding Sources CommunityDevelopmentDepartment
Relevant Policies 2. 3, 2.4, 3.1, 3. 2
Fair HousinIz Issue Disparitiesin Accessto Opportunity; RECAPSand/ or Integration/ Segregation

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Contributing Factor( s) Land use and zoning laws; Location and type of affordable housin
Program/ Action Type HousingMobilityStrategies; NewHousingChoicesand Affordability in Areasof Opportunity:

Rezonesitesto increasemultifamilyresidential
options on at least 5 acres and create the
opportunityfor 150dwellingunitsin moderate- and
high opportunityf higher resource areas.

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Appendix C: Constraints and Zoning Analysis
Table of Contents
HOUSINGCONSTRAINTS............................................................................................................................... 3 1 Governmental Constraints.................................................................................................................... 3

1. 1 General Plan.................................................................................................................................. 3

1. 2 Land Use and Development Code................................................................................................. 4

1. 3 Permitting Process......................................................................................................................... 7 1. 3. 1 Single - Family Homes............................................................................................................. 7

1. 3. 2 Accessory Dwelling Units....................................................................................................... 7

1. 3. 3 Multifamily Housing.............................................................................................................. 8

1. 3. 4 Mobile/ Manufactured Housing............................................................................................. 8

1. 4 Special Needs Housing.................................................................................................................. 9

1. 4. 1 Group Homes and Residential Care Facilities........................................................................ 9 1. 4. 2 Boarding or Rooming Houses.............................................................................................. 11 1. 4. 3 Senior Housing..................................................................................................................... 11 1. 4. 4 EmergencyShelters, TransitionalHousing, andPermanentSupportiveHousing .............. 11 1. 4. 5 Single - Room - Occupancy Units............................................................................................ 14

1. 5 Facilitating Affordable Housing................................................................................................... 14 1. 5. 1 Residential High Density Special (HDS) Overlay and Greenspot Village & Marketplace SpecificPlan........................................................................................................................................ 14

1. 5. 2 Lot Consolidation Incentives............................................................................................... 15

1. 5. 3 Inclusionary Housing Ordinance.......................................................................................... 15

1. 5. 4 Density Bonus...................................................................................................................... 16 1. 6 Residential Development Standards........................................................................................... 17

1. 6. 1 Parking Requirements......................................................................................................... 21 1. 6. 2 Building Codes..................................................................................................................... 22 1. 6. 3 On- and Off - Site Improvements.......................................................................................... 22

1. 7 Development Fees....................................................................................................................... 23

1. 8 Permit Approval Process............................................................................................................. 25

1. 8. 1 Staff Review Permit............................................................................................................. 26

1. 8. 2 Minor Design Review........................................................................................................... 27

1. 8. 3 Major Design Review........................................................................................................... 29

1. 8. 4 Conditional Use Permit........................................................................................................ 30

1. 8. 5 General Plan Amendment/ Zone Change............................................................................ 32

1. 8. 6 Processing Time................................................................................................................... 33

1. 8. 7 Special Business License Provisions: Crime Free Multiple - Family Rental -Housing Program 33 1. 9 Housing for Persons with Disabilities.......................................................................................... 34

1. 9. 1 Reasonable Accommodation............................................................................................... 35

1. 9. 2 Group Homesand Residential Care Facilities...................................................................... 36 1. 9. 3 Senior Housing and Facilities............................................................................................... 36

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2 9
4 5
MarketConstraints.............................................................................................................................. 37

2. 1 Availability of Financing............................................................................................................... 37 2. 1. 1 Construction Financing........................................................................................................ 37

2. 1. 2 Mortgage Financing............................................................................................................. 38

2. 2 Construction Costs and Construction Labor Shortage................................................................ 39

2. 3 Land Costs................................................................................................................................... 40

2. 4 Requestsfor Housing Developments at Reduced Densities.......................................................40

2. 5 Length of Time between Project Approval and Applications for Building Permits..................... 41 EnvironmentalConstraints.................................................................................................................. 42

3. 1 Environmental Features.............................................................................................................. 42

3. 1. 1 Biological Resources............................................................................................................ 42

3. 1. 2 Archaeological Resources.................................................................................................... 42

3. 1. 3 Water Resources................................................................................................................. 43

3. 1. 4 Energy Conservation........................................................................................................... 43 3. 2 Environmental Hazards............................................................................................................... 44

3. 2. 1 Flooding............................................................................................................................... 44 3. 2. 2 Landslides/ Slope Instability................................................................................................. 44

3. 2. 3 Earthquake.......................................................................................................................... 44

3. 2. 4 Liquefaction......................................................................................................................... 45

3. 2. 5 Wildfire................................................................................................................................ 45

3. 3 Adequate Infrastructure Capacity............................................................................................... 45

3. 3. 1 Dry Utilities.......................................................................................................................... 45 3. 3. 2 Sewer System...................................................................................................................... 46

3. 3. 3 Water System...................................................................................................................... 46 Analysis of Local Efforts to Remove Constraints and Facilitate Affordable Housing .......................... 48 QuantifiedObjectives.......................................................................................................................... 52 Tables
Table 1. Residential General Plan Land Uses......................................................................

Table 2. Residential Uses Permitted by Zoning District......................................................

Table 3. Residential Development Standards.....................................................................

Table 4. Residential Parking Standards...............................................................................

Table 5. Residential Development Fees..............................................................................

Table 6. Permit Processing Times........................................................................................

Table 7. Disposition of Home Loans( 2019).........................................................................

Table8. Summaryof QuantifiedObjectivesfor 6th Cycle (2021- 2029) ............................. 3 5
18 21
24 33
38 52

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HOUSING CONSTRAINTS
Variousfactorsinfluencethe ability of the Cityof Highland (City) to meet its housinggoals. Theseinclude governmentalconstraints, suchaslanduseregulations, andnongovernmentalconstraints, suchas marketandenvironmentalfactors. Thisappendixprovidesthe requisiteanalysisof potentialand actual market, governmental, andenvironmentalconstraintsto theproduction, maintenance, and improvement of housing pursuant to State law.
1 Governmental Constraints
TheGeneralPlanLandUseElementsetsforth landusedesignationsto guidethe location, type, and intensityordensityof permittedusesof land. TheLandUseandDevelopmentCodeimplementsthe GeneralPlanbyprovidingspecificdirectionanddevelopmentstandardswithineachoftheuse categories. These land use controls can facilitate or limit certain types of development.

1. 1 General Plan
Statelawrequiresthat eachcity havea GeneralPlanthat establishespolicyguidelinesfor future development. TheCityof HighlandGeneralPlanisalong-rangepolicydocumentthatlaysoutthe frameworkforallfuturegrowthanddevelopmentwithintheCity. TheCityof Highlandadopteda comprehensive update of its General Planin 2006. The Land Use Element describes the land use policies anddesignationsusedto guidephysicaldevelopmentoftheCitythroughthelocation, distribution, and densityof uses. Predominatelya residentialcommunity, almost60percentoftheCity's11,948acresof land is planned for residential development.

As shown in Table 1, the Land Use Element describes seven land usesallowing housing, including a historicpreservationdistrictandonemixedcommercial, office, andresidentiallandusedesignation. The Planned Development ( PD) designation allows flexibility in development standards to encourage creativityandsite -specificdesign. ThePlannedDevelopment (PD) districtisanopportunityfor master planningwithoutaSpecificPlan, potentiallyprovidingacostsavingsto thedeveloper, buyer, andrenter.

Table 1. Residential General Plan Land Uses
Land Use Designation Acres Description
Agricultural/ Equestrian 504
Rural and equestrian -oriented residential development at a maximumdensityof 2 unitsperacre.

Low Density 2,500 Single-familydetachedhomes, includingmobilehomes, ata maximumdensityof 6 unitsperacre.

Medium Density 177
Small -lotsingle-familydetachedorattachedhousing, mobile homes, andmultifamilyhousingata maximumdensityof12
units per acre.

High Density 46 Multifamilyhousingatamaximumdensityof 18unitsperacre.

HighDensitySpecial 58 Multifamilyhousingfrom20to30unitsperacre.

Historic Village Residential 32 Low -densityresidentialdevelopmentwithintheHistoricVillage District at a maximum densit of 6 units er acre.

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Table 1. Residential General Plan Land Uses
Land Use Designation Acres Description
Mixed Use 54
Horizontal and vertical mixed -use housing types at a
maximumdensityof 18unitsperacre.

Planned Development 3, 708 SpecificPlanareasinwhichhousingtypesanddensitiesmay vary, buttypicallyrangefrom5to12unitsperacre.

Total 7, 079
TheprogramprovidedbytheGeneralPlanLandUseElementestablishes15goalsfor future developmentwithin the City. Thesegoalsareintendedto do the following:

Plan for future growth
Provide clarity in land use guidance
Maintain a mix of development with urban, suburban, and rural character Createplacesfor peopleto live, shop, work, learn, andrecreate Protect and enhance Highland' s neighborhoods
Provide new housing opportunities
Strengthen commercial opportunities
Expand the employment base
Ensure land use compatibility
Preserve natural resources
Thelandusecontrolsprovidedinthe GeneralPlanandLandUseandDevelopmentCodeguidethe developmentof newhousingto meetexistingandfutureneeds, maintaintheexistingcharacter, and improve neighborhoods and the housing stock.

1. 2 Land Use and Development Code
Zoningregulationsare intendedto ensurethat developmentdoesnot negativelyaffect community health, safety, andwelfare. TheCity'sLandUseandDevelopmentCoderegulateshousingopportunities byestablishingpermittedusesanddevelopmentstandards. Severalzoningdistrictsrespondto specific existingconditions, suchascompatibilitywiththehistoricdevelopmentintheoriginalHighland Townsite, and appropriate design for busy transportation corridors.

Residentialusesallowedin Highlandare listedbyZoningDistrictinTable2. Usespermitted by rightare indicated by the " P," conditionally permitted are indicated by the " C," and permitted uses that may requireapprovalbythe CommunityDevelopmentDirectoror designeeareindicatedby "SR." All permit types are defined in the Permit Approval Process Section.

Newresidentialzoningdistricts, theResidentialHigh -DensityDistrict (R-4), andtheResidentialHigh - DensitySpecialOverlay (HDS) wereestablishedintheCity'sLandUseDevelopmentCodein2011. These districtsallow densitiesof 20to 30 unitsperacreto facilitatethe developmentof higher -density multifamily housing as part of a larger mixed -usecommunity.

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1. 3 Permitting Process
Developmentreviewisthe primarywayto ensurethat the constructionof projectscontributesin a positive mannerto the communityandqualityof life. Residentialdevelopmentprojectstypically undergo several types of approvals. This section outlines the development review processfor various typesof housing (seeSection1.8.6, ProcessingTime, for averageprocessingtimesfor variousproject applications and reviews).

1. 3. 1 Single - Family Homes
Single-familydetachedhomesarethemostcommonhousingtypein Highland, makingupapproximately three-quartersoftheentirehousingstock. Single-familydetachedhousingispermittedbyrightinfour zoningdistricts (A/EQ, R-1, VR, andEHV), andpermittedfollowingstaffreviewintwo districts (R-2and R-2C) andin separatedmultiple useprojectsinthe MU District. Single-familyattachedhousing, suchas. condominiums, ispermittedintheR-2zonewithaConditionalUsePermit (CUP) andpermittedintheR- 2Cand R-3 zoneswith a Staff Review Permit. Largesingle-family detached and single-family attached projectsthat requiretract mapsareultimately reviewedbythe PlanningCommission. In 2009, the City merged the former Design Review Board with the Planning Commission in order to reduce the amount of time spent on design issuesand to streamline the project approval processwithout diminishing quality. ThePlanningCommissionnow performsdesignreviewat the sametime asother reviewsthat may be necessarydepending on the permit at hand.

TheCity'sPlanningDivisioncoordinatesapre -applicationmeetingbetweenaproject'sapplicantandthe ProjectReviewCommitteeto provideapplicantsanearlyopportunityto presenttheir projectto the City beforesubmittinga developmentapplication(s). Thisinitialstep hasprovento besuccessfulin the past because it disclosesinfrastructure or other issuesthat are more cost-effective to address early in the projectdesignphase. Identifyingpotential issuesprior to submittinga developmentapplicationsaves developers a significant amount of time and money. After the Planning Division determines the applicationsto becomplete, they areroutedto the ProjectReviewCommitteefor their formal review and comments. Applications are also routed to utility companies and outside responsible agencies that have requested to be notified.

Onceaproject'senvironmentalreviewandpubliccommentprocesshavebeencompleted, thePlanning Divisionprovidesacopyofallthecommentsto theapplicantfor reviewanddiscussionwiththeCity's Project Review Committee. Once the comments have been reviewed by all parties, a public hearing beforetheCity'sPlanningCommissionisscheduled. Theapplicantisprovidedwithacopyofthepublic hearingnoticeandstaff reportwith conditionsandfindingsof factsfor their review. Theconditions clearlyoutlinealltherequirementsneededto recordafinalmap, aswellasanyconditionsrelatedto the constructionof the housingunitsthat arenecessaryto ensureadequatepublichealth, safety, and welfare.

1. 3. 2 Accessory Dwelling Units
Accessorydwellingunits (ADUs) maybedetachedfromorattachedto theprimarysingle-familydwelling unit. ADUsarecapableof providinghousingbelowmarketprices, andoften meetthe specialneedsof youngpersons, olderadults, andpeoplewithdisabilities. InaccordancewithAssemblyBill1866 Government CodeSection 65852.2), the City amended the LandUse and Development Codeto make permittingADUsin single-familyzonesa ministerialactionthat doesnot requirepublicnotice, public

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hearing, ordiscretionaryapproval. UnderstandingthatADUsprovideopportunitiesforaffordable housingwithoutchangingtheCity'ssmall-towncharacter, Highlandfacilitatesthedevelopmentof attached and detached ADUs by permitting them in all residential zones.

Most recently, the Cityamendedthe AccessoryDwellingUnitsandJuniorAccessoryDwellingUnits Ordinance (Section16.44.180of the City's LandUseandDevelopmentCode) in 2021to complywith several updates consistent with State law, Government CodeSection 65852.2. As part of Program 12, AccessoryDwellingUnits, of theHousingElement, theCitywillfurtherupdatetheordinancein response to recent changes in State law and submit the updated ordinance to the State Department of HousingandCommunityDevelopment (HCD) for their reviewandwill incorporateamendments, as requiredbyHCD. Further, theCitywilldevelopandadoptaprogramthatincentivizesandpromotesthe creation of ADUsthat can be offered at an affordable rent for extremely low, very low, low, or moderate - income households or households with special needs ( AB 671, 2019).

From2015to 2020, theCityapprovedeightADUs. Additionally, oneADUpermitwasplacedonhold the apphcante+ andanotherADUpermit expired. Basedonthis record, the Cityassumesthat at least two but asmanyas30 ADUsperyearcouldbepermittedduringthe planningperiod. Asthe City'solder adultandcollege -agepopulationincreases, asisprojectedfortheplanningperiod, ADUscouldhelpto providehousingforthesepopulationsastheycanbe animportanthousingresourceforsmall, lower - income households.

1. 3. 3 Multifamily Housing
Multifamilyhousing, referredto asmultiple -family, attachedhousing, makesupapproximately16 percentoftheCity'shousingstock. Multifamilyhousingiscurrentlyconditionallypermittedinthethree multifamilyzones (R-2, R-2C, R-3) andin attachedmixed -usestructuresinthe MU District. Multifamily housingispermittedfollowingstaffreviewinseparatedmultipleuseprojectsintheMUDistrict, and permittedby -rightintheR-4 zoneandHigh -DensitySpecialOverlay (HDS) subjectto theCity'sStaff ReviewPermit. TheCUPprocessisthe City'sopportunityto ensurecompatibilitywith surroundinguses.

TheCUPprocesscanoccurconcurrentlywithaDesignReview (seeSection1.8, PermitApproval Process). MultifamilyhousingprojectsintheR-4 andHDSDistrictsarenotsubjectto aCUP; however, theydorequireMajorDesignReview. Thedesignreviewprocessconsidersthe compatibilitywithdesign standards, suchassetbacks, landscaping, andother basicaspectsof project design, to ensurehigh - quality design.

Thepermittingprocedurefor amultifamilyhousingprojectissimilarto thatfor alarge, single-family detachedor attachedproject. Inthe caseof a hypothetical50-unit multifamily project, the City's PlanningDivisionwillcoordinateapre -applicationmeetingbetweentheapplicantandtheProject ReviewCommitteeto identify potential issuesthat shouldbeconsideredearlyin the planningand design process.

1. 3. 4 Mobile/ Manufactured Housing
Singlemobilehomeunitsplacedonapermanentfoundation, certifiedunderthe NationalMobileHome ConstructionandSafetyStandardsActof 1974andconstructedafterOctober1976, maybepermitted on individual lots in the A/ EQ, R-1, R-2, and R-3 zones, as specified in the City's Land Useand Development Code (Section 16.40.180, Mobile Home and Modular Home Requirements), following staff review approved by the Community Development Director. The review ensures that the units comply

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withStateandlocalstandardsoftheunderlyingzoningdistrict. Mobilehomesubdivisionsarepermitted understaff reviewin the A/EQand R-1zones, andconditionallypermitted in the R-2 andR-3 zones, while mobilehomeparksareconditionallypermittedin the R-1, R-2, and R-3 zones.

Pursuantto CaliforniaGovernmentCodeSections65852.3 and65852.7, certifiedmobilehomes manufacturedhomes) onapermanentfoundationthatarebuiltto theUnitedStatesDepartmentof HousingandUrbanDevelopmentCodeareconsideredthesameassingle-familydwellingsandare permittedonalllotszonedfor single-familyhomes. Suchhousingissubjectto thesamerequirements e.g., planning, permitting, reviews) assite -builthomes, exceptfor certainarchitecturalrequirements.

TheGovernmentCodespecifiesthat a mobilehomeparkshallbedeemeda permittedlanduseon all landplannedandzonedforresidentiallanduseasdesignatedbytheapplicablegeneralplan, provided, however, that a city mayrequirea usepermit. Program20, Mobile HomePreservation, requiresa reportdetailingrelocationanddisplacementforanyproposedconversionorclosureofamobilehome park.

The Highland Land Useand Development Codedefines manufactured housing asa structure, transportableinoneor moresections, whichisbuiltonapermanentchassisandisdesignedfor usewith orwithoutapermanentfoundationwhenconnectedtotherequiredutilities, includingtraveltrailersfor floodplainmanagementpurposes, andprovidesguidelinesfor singlemobilehomesandmodularhomes or manufactureddwellingunitswithintheCity'sLandUseandDevelopmentCode, includingdesign feature requirementsconsistentwith CaliforniaGovernmentCodeSection65852.3. Thepermitteduses tablefor residentialdistrictsinthe LandUseand DevelopmentCodeincludesmobilehomesubdivisions and mobile home parks.

1.4 Special Needs Housing

1. 4. 1 Group Homes and Residential Care Facilities
PerHCD'stechnicaladvisory' grouphomesreferto anyhousingsharedby unrelatedpersonswith disabilitiesthatprovidepeerandothersupportfortheirresidents' disabilityrelatedneedsandinwhich residentssharecooking dining andlivingareas andmay, in somegroup homes participatein cooking housekeepingandothercommunallivingactivitiesGrouphomesarefurtherdefinedin HCD'stechnical advisory' bystatelicensingrequirementsGrouphomesthatdonotprovidelicensableservicesanddo not requirestatelicensesto operatearecategorizedasunlicensedgrouphomes. Theseinclude, for examplegrouphomesthat providepeersupportandlimited servicesto residentsbut not themore extensivecareandsupervisionthatrequiresobtaininga licenseunderstatelaw. Grouphomesthatdo requirestatelicensesto operate suchasthoseservingchildren arecategorizedaslicensedgroup homesandincludevarioussubcategoriesof communitycareresidentialfacilitiesdefinedinHealthand Safety Code ( Sections 1500 et seg. and 1569 et seg.). The City's Zoning Codedefines all categories of licensed group homes as " Residential Care Facilities " ( See definition for Residential Care Facilities below.

Statelawpreventscitiesfromimposingoverlyrestrictiveregulationsoncommunitycarefacilities. The Health and Safety Code ( Sections 1500 et seq.) requires that group homes serving six or fewer persons be (1) treatedthesameasanyotherresidentialuseandshallbeconsidereda residentialuseof property CaliforniaDepartmentof HousingandCommunityDevelopment. GroupHomeTechnicalAdvisory, 2022.

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bya singlefamily; (2) allowedin all residentialzones; and (3) besubjectto the samedevelopment standards, fees, taxes, andpermit proceduresasthoseimposedonthe sametype of housingin the samezone, and no CUP, zoningvariance, or other zoningclearanceshallberequiredthat isnot required of afamilydwellingof thesametypeinthesamezone. Localagenciesmustallowtheselicensedcare facilitiesinanyareazonedfor residentialuse, andmaynotrequirelicensedresidentialcarefacilitiesfor sixorfewerpersonsto obtainconditionalusepermitsorvariancesthatarenotrequiredof otherfamily dwellings. Large residential care facilities (those with seven or more residents) are subject to local land use regulations and other restrictions such as conditional use permit requirements.

Accordingto the City's LandUseandDevelopmentCode, a "residentialcarefacility" (licensed group home) is a State -authorized, certified, or licensed facility that provides non -medical residential care, day treatment, therapeutic rehabilitative care, and adult day care, residential care for the elderly, transitionalhousingplacement, substanceabuserecoveryortreatmentfacility, orfosterfamilyagency servicesfor childrenor adults. Accordingto the permitted usestable inthe LandUseandDevelopment Code, residentialcarefacilitiesservingsevenor more persons, called "BoardandCareFacilities" inthe usestable, areconditionallypermitted in all multifamilyzones (R-2, R-2C, R-3, R-4, and HDS) and commercialzones (CG, NC, PC, VC). TheCUPprocessisoutlined in Section1.8.4, ConditionalUsePermit.

Requirementsfor discretionarypermitsmayposeconstraintsto developmentbutmaybenecessaryfor certain useswhich could have an effect on the existing community. Forexample, Residential Care Facilitiesprovidein-housetreatmentor rehabilitationprogramsona24-hourbasis. Theseincludedrug andalcoholrehabilitationandrecoveryfacilities. ThePlanningCommissionwill onlydenya CUPif the required findings cannot be met. PfGgFaFA 14 0__. d tial CaFe PaGilitie Of the He g WoMeRt However, to mitigate potential constraints to the development of group homes and Tto comply with the intent of fair housinglawsandensureclarityinthe permitting process, the HousingElementProgram 18, Group Homes and Residential Care Facilities, will update the Zoning Codeasfollows:

Licensed Group Homes/ Residential Care Facilities —
The Health and Safety Code requires jurisdictions to allow licensed group homes serving six or fewer personsin single-family residentialzonesandto treat them the sameassingle-familyhomes. TheCity's Zoning Codedefines all categories of licensed group homes as "Residential CareFacilities." To comply with the Health and Safety Code and state housing laws regarding licensed group homes, the City will update the Zoning Code's definitions and permitting processesto differentiate between Residential Care Facilities ( licensed group homes) serving six or fewer residents and those serving seven or more residents Additionally, the City will permit Residential Care Facilities (licensedgroup homes) serving six or fewer personsin all single-familyzonessubjectonlyto the generallyapplicablelawsthat applyto all single-family residencesin accordancewith the Welfareand InstitutionsCodeand HealthandSafety Code and permit those serving seven or more in at least one zone without discretion.

Unlicensed Group Homes that Do Not Provide Licensable Services — Tocomplywith state housinglawsregardingunlicensedgroup homes jurisdictionsmustpermit all unlicensed group homes that operate as single-family residences and that do not provide licensable

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services in single- family neighborhoods subiect only to the generally applicable, nondiscriminatory health safety, andzoninglawsthat applyto all single-family residences. Assuch the Citywill updatethe ZoningCodeto permit unlicensedgrouphomesin single-family zonessubiectto the samelawsthat apply to all single-family residencesto comply with state housing laws.

WhiGhSiRglefamily hemes aFepeFmitted, and peFmit these se i — .
more in at least eRe ZeRe
without d*seFetieR. This will eRSUFethat lieeRsedfacilities (gFoyp higmes/FesidentialeaFefaGilities) aFe

1. 4. 2 Boarding or Rooming Houses
Althougha boardingor roominghousemayprovidehousingto unrelatedindividuals, it isnotconsidered a residentialcarefacility. Highland's LandUseand DevelopmentCodedefinesa boardingor rooming houseasa buildingcontainingadwellingunitwherelodgingisprovidedwithorwithoutmealsfor compensationfor sevenor morepersons. Forsixor fewer occupants, the Citydefersto requirementsin theState'sguidelines. Aboardingor roominghousedoesnotprovideon- oroff -sitesupportiveservices.

Boardingor roominghousesareconditionallypermittedintheR-2, R-2C, R-3, R-4, andHDSresidential zones, and maynot belocatedwithin 500feet of the sameuse. Furthermore, to preventa concentration of parolees, nomorethanoneFederal, State, orjuvenilejusticeparoleeshallbeallowedto livein boardingor roominghouseatanyonetime, exceptif aboardingor roominghousehas10or more dwellingunits, thentheremaybeoneadditionalFederal, State, orjuvenilejusticeparoleefor every10 dwellingunits. Thelocationandparoleerestrictionswereenactedinresponseto publicconcernsabout boardingand roominghousingaffectingcommunitysafetyandwelfare.

1. 4. 3 Senior Housing
WithHighland'sgrowingolderadultpopulation, it isimportantthatarangeof housingtypeslocatedin well-resourcedareas (e.g., neartransit, jobs, parks) areavailableto servetheir specialneeds. Thesecan includehousingsuchassmallerandmoreaffordableunits (includingseconddwellingunits), senior housing, andvariousformsof carehousing. Carehousingthatassiststhespecialneedsof olderadults includeseniorindependentlivingprojects, residentialcarehomesforolderadults, congregatecare, and convalescent care. Senior independent living projects are permitted with a Staff Review Permit in the A/EQ, R-1, VR, and EHVzones, andconditionallypermitted in multifamilyzones (R-2, R-2C, R-3, R-4, and HDS) and the mixed use zone (MU). Congregate care and convalescent care homes are conditionally permittedin multifamily, mixeduse, andcommercialzones. Residentialcarefacilities, whichcaninclude residential care facilities for older adults per the City' s definition, serving seven or more persons, are conditionallypermitted in multifamilyzones (R-2, R-2C, R-3, R-4, andHDS).

1. 4. 4 EmergencyShelters, Transitional Housing, and PermanentSupportive Housing
California Senate Bill (SB) 2 (Cedillo) was approved in 2007 with the goal to remove zoning barriers for emergencysheltersandtransitionalandsupportivehousing, andprovidesdirectioninthewaysinwhich localgovernmentsaddresshousingforthoseexperiencinghomelessnessorthoseat riskof

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homelessness. SB2 isintendedto strengthenexistingHousingElementrequirementsto providefor the developmentof emergencysheltersandtransitionalandsupportivehousing.

Emergencysheltersarethefirststepinacontinuumof careprogramdesignedto allowpeople experiencinghomelessnessatemporaryplaceof stay. Asdefinedbysubdivision (e) ofSection50801of the HealthandSafetyCode, emergencysheltermeanshousingwithminimalsupportiveservicesfor personsexperiencinghomelessnessthatislimitedto occupancyof 6 monthsorfewerbyaperson experiencinghomelessness, andwhereno individualor householdmaybedeniedemergencyshelter because of an inability to pay.

SB2 requiresjurisdictionsto identifyazonewhereemergencysheltersarea permittedusewithouta CUPor other discretionary action. The identified zone(s) must have sufficient capacity to accommodate the needs, regardlessof the demonstratedneed, andhavesufficientcapacityto permit at leastone year-roundemergencyshelter. Statelaw (GovernmentCodeSection65583(a)(4)) limits the development standards and locational restrictions that can be applied to emergency shelters.

Emergencysheltersmayonlybesubjectto thosedevelopmentandmanagementstandardsthatapplyto residential or commercial development within the same zone except that a local government may apply written, objective standards that include all of the following:
the maximumnumberof bedsor personspermittedto beservednightlybythe facility; sufficientparkingto accommodateallstaffworkingintheemergencyshelter, providedthatthe standards do not
requiremoreparkingfor emergencysheltersthanotherresidentialorcommercialuseswithin the same zone;
the size and location of exterior and interior onsite waiting and client intake areas; the provision of onsite management;
theproximitytootheremergencyshelters, providedthatemergencysheltersarenotrequired to be more than
300 feet apart;
the length of stay;
lighting; and
securityduringhoursthat the emergencyshelterisin operation.

Emergencysheltersserving25personsorfewerarepermittedinthebusinesspark (BP) employment zonesubjectto approvalof a StaffReviewPermitapplication. TheBPdesignationallowsfor light industry, researchanddevelopment, officeuses, andbusinessandcommercialusesthatsupportthe employees and clients of the area, and commercial uses requiring large parcels. Should an emergency shelterbeprovidedintheBPdistrict, residentswouldbenefitfromaccessto publictransit, retailuses, andregionalemploymentgrowthinnearbybusinesses. Residentswillalsobeconnectedto otherareas of the communityandadjacentcitiesby buses. Thelocalbustransitserviceprovider, Omnitrans, operates two routes that serve this area (Route 3 and Route 15). Asoutlined above, jurisdictions are permittedto limitthemaximumnumberofbedsorpersonspershelterunderStatelaw. Regulatingthe numberof bedsor personspermitted, canpotentiallyhelppreventcrowdedshelterconditions. The importanceofthiswasseenearlyintheCoronavirus (COVID-19) pandemic. Communitiessawrapid transmissionof COVID-19in homelessshelters, particularlyin congregatesettings, wherepeopleshared

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livingandsleepingspaces, sometimesin beds, cots, or bunksthat wereverycloseto one another'.

Further, asfully analyzedbelow, the 25personlimit doesnot constrainthe City'sabilityto demonstrate that the zone where emergency shelters are allowed by right includes sufficient capacity to accommodate the need for emergency shelter identified in the most recent point -in -time count conducted before the start of the planning period.

Thereareapproximately270acresin the CitydesignatedasBP, generallylocatedalongthe southwesternCityboundary. Atotalof 116acresintheBPdesignationarevacantwithanaverage parcelsizeof 0.74 acres. Giventhe developmentstandardsinthe BPzone, includingthe minimum parcelsizerequirement, thereareapproximately25vacantsitesthatcouldpotentiallyaccommodatea multi -servicefacility. Asdiscussedabove, allofthesitesarewithinahalfmileof publictransitlinesand nearexistingcommercialandbusinessuses, providingaccessto opportunities. Takinginto accountthe 25-personlimitfor emergencyshelters, the25sitesstillprovideapotentialcapacityfor approximately 625 beds. Basedon the 2020 point -in -time count described in Appendix B, Community Profile, there were a total of 78 unsheltered adults in the City, meaning that the City theoretically has more than sufficient capacity of sites to accommodate the need for emergency shelter.

As defined in California Government CodeSection 65582(j), transitional housing includes buildings configured as rental housing developments but operated under program requirements that require the termination of assistanceand recirculating of the assisted unit to another eligible program recipient at a predeterminedfuturepointintimethatshallbenofewerthan6monthsfromthebeginningofthe assistance. SupportivehousingisdefinedbyCaliforniaGovernmentCodeSection56682(f) ashousing with no limit on lengthof stay, that isoccupiedbythe target population,' andthat is linkedto anon -site or off -siteservicethat assiststhe supportivehousingresidentin retainingthe housing, improvinghisor her health status, and maximizing his or her ability to live and, when possible, work in the community.

Chapter16.06, Definitions, of the City's LandUseandDevelopmentCodedefines "supportivehousing" and "transitionalhousing" perthedefinitionsprovidedabove. Accordingto thepermittedusestablein the LandUseandDevelopmentCode, supportiveandtransitionalhousingarepermitted with a Staff Review Permit in the A/ EQ, R-1, VR, and EHVzones and conditionally permitted in multifamily zones (R- 2, R- 2C, R- 3, R- 4, and HDS).

To removeor mitigateconstraintsthat mayexistrelatedto zoningor permitsfor supportiveand/or transitionalhousingandto complywithGovernmentCodeSection65583, transitionalhousingand supportivehousingshallbeconsidereda residentialuseof propertyandshallbesubjectto the same developmentstandardsandpermittingprocessesasthe sametype of housingin the samezoneandin compliancewith the occupancylimitationsof Title 24of the CaliforniaCodeof Regulations. Under CaliforniaAssemblyBill (AB) 2162, supportivehousingmeetingspecificstandardsshallbeausebyright in all zoneswheremultifamilyand mixedusesare permitted, includingnonresidentialzonespermitting multifamilyuses. Additionally, nominimumparkingmayberequiredfor unitsoccupiedbysupportive housingresidentsif the developmentislocatedwithin 0.5 milesof a publictransit stop. 2https://www.urban.org/urban-wire/winter-here-covid-19-limiting-shelter-capacity-what-will-it-mean-people-experiencing-homelessness 3 "Targetpopulation" meanspersonswithlowincomeswhohaveoneor moredisabilities, includingmentalillness, HIVorAIDS, substance abuse, or other chronichealthcondition, or individualseligiblefor servicesprovidedpursuantto the LantermanDevelopmentalDisabilities ServicesAct (Division4.5, commencingwith Section4500, of the WelfareandInstitutionsCode) andmayinclude, amongother populations, adults, emancipatedminors, familieswithchildren, olderadults, youngadultsagingoutofthefostercaresystem, individualsexitingfrom institutional settings, veterans, and people experiencing homelessness.

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TheCityupdatedits LandUseandDevelopmentCodein 2013to complywith Statelaw; however, there have been several updates to State law, as outlined above. As such, the Housing Element includes Program19, EmergencyShelters, TransitionalHousing,-all4clPermanentSupportiveHousing, andSingle RoomOccupancy, to permit transitionalandsupportivehousingconsistentwith Statelawsandto amendtheCity'sEmergencySheltersOrdinance (Section16.44.270, EmergencyShelters) to complywith parkingrequirementssetforth byAB139, Quirk -Silva. Program279, LowBarrier NavigationCenters, includes an update to the Land Use and Development Code to provide, by -right, approvals exempt per the CaliforniaEnvironmentalQualityAct (CEQA) to Low -BarrierNavigationCenters4meetingspecific standards in areas zoned for mixed uses and nonresidential zones permitting multifamily uses, consistent with AB 101' s requirements for Low - Barrier Navigation Centers.

1. 4. 5 Single -Room - Occupancy Units
Anotherpotentialsourceof housingfor peopleexperiencinghomelessnessorformerlyexperiencing homelessnessare single -room -occupancy units. Single -room -occupancy units are very small, attached units intended for no more than one or two people. An agency or organization generally oversees the projectandprovidesongoingsupportiveservicesto promoteself-sufficiency.

The City's Land Useand Development Code does not currently permit single -room occupancy units.

ThroughProgram19, EmergencyShelters, TransitionalHousing, PermanentSupportiveHousing, and SingleRoomOccupancy, the Citywill amendthe ZoningCodeto identifya processbywhich single -room occupancies (SRO) canbepermittedto further increasehousingopportunitiesfor extremely -lowincome households.

1. 5 Facilitating Affordable Housing

1. 5. 1 ResidentialHigh DensitySpecial (HDS) Overlayand Greenspot Village & Marketplace Specific Plan
TheCityestablisheda ResidentialHighDensitySpecial (HDS) Overlayin 2011on approximately52acres zoned as Planned Development (PD). The HDSOverlay allows the permitting of up to 650 multifamily unitsat a minimumdensityof 20unitsperacreanda maximumdensityof 30 units peracre. TheHDS OverlayareaisgenerallyboundbyGreenspotRoadonthesouth, EucalyptusAvenueonthenorth, BoulderAvenueon the east, andthe CityCreekwashbasinon the west. The52acresis now located entirely within the Greenspot Village & Marketplace Specific Plan area, adopted in 2013.

The Greenspot Village & Marketplace Specific Plan is a master -planned, mixed -use development located within the area identified in the City's General Plan Land Use Element asthe " Golden Triangle Community Policy Area." The Specific Planconsists of three planning areas. Planning Area 1 allows for commercialuses; PlanningArea2 allowsfor residentialuses; and PlanningArea3 permitsa mixof residential, commercial, entertainment, governmental, andprofessionaloffice uses. Thetotal numberof dwellingunitsbetweenPlanningAreas2 and3 maynot exceed800. PlanningAreas2 and3 allow developmentat densityrangesof 20to 30and18to 40 dwellingunitsperacreandpermit 500 to700 units and 100 to 300 units, respectively; within that limit, dwelling units may be transferred between LowBarrierNavigationCenter" isdefinedasa housingfirst, low -barrier, service -enrichedshelterfocusedon movingpeopleinto permanent housingthatprovidestemporarylivingfacilitieswhilecasemanagersconnectindividualsexperiencinghomelessnessto income, publicbenefits, health services, shelter, and housing.

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PlanningAreas2and3. Asof November2021, thereareapproximately37acresof vacantlandwithin PlanningAreas2 and3, providinga generousamountof landavailablefor residentialdevelopment. As fullydiscussedinAppendixE, SitesAnalysisandInventory, theavailablevacantlandcoupledwiththe higherdensitiespermitted, purelyresidentialusesandrangeinhousingtypesallowed, andflexibilityin standardsand requirementsaffordedbythe SpecificPlan, removeand reduceconstraintsfor residential uses and aim to facilitate affordable housing development.

1. 5. 2 Lot Consolidation Incentives
Lot consolidation can increasethe efficiency of land use and create the critical mass needed for a quality multifamilyhousingproject. TheCityhasidentifiednumerousvacantandunderutilizedparcelsthathave the potentialto accommodatemultifamilyprojects. Theirdevelopmentpotentialcouldbeimproved through lot consolidation.

Althoughthe developmentcommunityisawareof the inherentbenefitsof acquiringlargersites, the Cityseeksto promotethis process. Throughthe implementationof Program22, LotConsolidation Incentive, oftheHousingElement, theCityiscommittingto providingexpeditedprocessingforthe consolidation of lots identified in Appendix E, Sites Analysisand Inventory, as having the potential to accommodate lower - income households.

1. 5. 3 Inclusionary Housing Ordinance
TheCity's LandUseandDevelopmentCode's InclusionaryHousingOrdinanceaimsto facilitate the developmentandavailabilityof housingaffordableto a broadrangeof householdswith varyingincome levelswithintheCity. It providesguidelinesfortheproductionofaffordablehousingat moderate-, low-, andverylow-incomelevels; paymentof anin -lieufee; ordedicationof landforaffordablehousing.

All newresidentialdevelopmentprojectswithin the Citymustdedicateat least15percentof the units for affordablehousing. Restricted, forsaleunitsmustbesoldto low- andmoderate -incomehouseholds.

Rentalprojectsmustrentat least10percentof theunitsto verylow-incomehouseholds, withthe remaining5 percentof affordableunitsrentedto low- ormoderate -incomehouseholds. Inexchangefor the constructionof affordableunits, the Cityallowsunit sizereductionanddifferent interior finishesfor affordableunits, aslongasthey areof durablequalityandconsistentwith the currentCaliforniaBuilding Code.

In lieu of constructingallor anyaffordableunitson site, adevelopermaypayan affordablehousingin - lieufee of $3,750perunit to the City. In lieuof buildinginclusionaryunits, the developermayalso chooseto dedicatelandwithin the Cityto the City. Dedicatedparcelsmustbesuitablefor the constructionof inclusionaryunitsandequivalentorgreaterinvaluethanwhatwouldbeproducedby applyingtheCity'sin -lieufeeto theproject. Allin -lieufeesaredepositedinaninclusionaryhousingfund to be spent on affordable housing development and programs.

TheCityprovidesregulatoryrelieffordevelopersof sitesthatcannotaccommodateaffordableunits. If theCitydeterminesthatprovidingon -siteinclusionaryhousingisinfeasible, thedevelopermay constructaffordableunitson anothersitewithin the Citypriorto or concurrentlywith constructionof theon -siteproject. Shouldadeveloperprovidemoreaffordableunitsthanrequiredbytheinclusionary ordinance, the developermaytransfercreditfor thoseaffordableunitsto their next project in Highland or to another developer.

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Program4, InclusionaryHousing, of the HousingElementincludesa programto continuethe City's Inclusionary Housing Ordinance to provide funding for affordable housing preservation, rehabilitation, and construction.

Duringthe2014-2021HousingElementcycle, noinclusionaryhousingunitswereconstructed. Inlieuof construction, developersoptedto paythe affordablehousingin -lieufee of $3,750per unit. Asof January2021, thecurrentbalancefromin -lieufeesis $569,000, andthefundshavenotyetbeenused for preservationorconstructionof affordablehousing. However, theCityplansonusingthefundsto construct new affordable units at the Housing Authority' s property at 7433 Central Avenue. The anticipatedproposalwill developapproximately8990te ! I() affordabledwellingunitson 3.75acres.

1. 5. 4 Density Bonus
Adensitybonusisanentitlementto buildadditionalresidentialunitsabovethemaximumnumberof unitsallowedperthe MunicipalCodein exchangefor providingaffordablehousingspecifiedby as Government Code Sections 65915- 65918.

Forprojectsconsistentwiththeapplicableaffordablerequirements, jurisdictionsmustgrantonedensity bonus, and, if requestedby the applicant, incentivesor concessions, andwaiversor reductionsof developmentstandardsdependingonthe percentageof affordableunits. Concessionsandincentives include reductions in site development standards or a modification of Zoning Code or architectural design requirements, such as a reduction in setback or minimum square footage requirements, approval of mixed -usezoning, or other incentivesor concessionsthat resultin actualcostreductions. In accordancewith Statelaw, projectsthat meetthe minimumcriteriafor a densitybonusareentitledto at leastoneconcessionandmaybeentitled to asmanyasfour concessionsdependingonthe amountof affordable housing provided.

TheCity's LandUseandDevelopmentCode (Section16.40. 090, DevelopmentDensity) outlinesthe densitybonusesandincentivesorconcessionsthatareavailableto affordablehousingandqualifying residentialprojects; however, theCity'sDensityBonusOrdinance, approvedin2013, isnolongerin compliance with the State' s latest Density Bonus Law.

Under AB 2345 amending code Section 35915, which took effect on January 1, 2021, the maximum availabledensitybonusfor projectsnotcomposedexclusivelyofaffordablehousingincreasedfrom35 to 50percent. Toreceivethetop bonus, aprojectmustcomplywithunitreplacementrequirementsand setasideat least24percentof unitsfor low-incomehouseholds, 15percentof unitsforverylow-income households, or44percentof for -saleunitsfor moderate -incomehouseholds. Bonusesbetween35and 50percentwillbegrantedonaslidingscale, whilecurrentaffordabilityrequirementsto obtainalesser bonuswill remainunchanged. TheCity's DensityBonusOrdinancedoesnot meetthe currentStatelaw maximum density bonus of 50 percent.

Program6, DensityBonus, willupdatetheCity'sDensityBonusOrdinanceto complywiththecurrent StateDensityBonusLaw, includingthe provisionfor an increasedbonusfor 100percentaffordable developments and student affordable housing.

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1. 6 Residential Development Standards
The General Plan Land Use Element establishesthe maximum density for housing and where it can generallybe locatedwithin Highland. TheLandUseand DevelopmentCodeprovidesmorespecific residential development standards that determine building height, density, setbacks, parking, and other requirements. Development standards tailored to each zoning district and certain specific usesare providedto ensurequalitydesignto protectthehealth, safety, andwelfareofthepublic, aswellas enhancethe appearanceof the community. Developmentstandardsimprovethe qualityandlivabilityof housing development in Highland.

Table 3 lists the minimum acceptable standards for development within the City's residential districts to ensure safe and attractive development without hindering the production of housing.

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1. 6. 1 Parking Requirements
Parkingrequirementsmustrelateto thehousingtypeto provideadequateandappropriatelylocated parkingfacilities. Adequateparkingfor residentialprojectscontributesto thevalueof a project, the safetyof residents, itsappearance, andlivability. However, excessiveparkingstandardsthatdo not reflectactualparkingdemandcanundulyincreasedevelopmentcostsbyreducingthepotentialland availabilityforadditionalunitsorprojectamenities. Citiesstatewidearealsofindingthatparkingisa contributingconstraintto buildingaffordablehousing, reflectivein the costof one parkingspace.

Reductionsinparkingrequirementsarecurrentlymadepossiblethroughparkingstudiesfor senior housingtypes, andthe CommunityDevelopmentDirectormayapprovereducedparkingrequirements for projectsthatincorporateaffordableunitsbutdonotqualifyfor densitybonusincentives.

Additionally, Program32, ReducedParkingRequirements, willprovideaprocessbywhichparking requirements can be reduced for religious institutions in exchange for housing development. Table 4 displays City residential parking requirements.

Table 4. Residential Parking Standards
use Minimum Off -Street Requirements
Single -FamilyDetached' Residentparking: 2 enclosedgaragespaces Guestparking: Ifguestparkingisnotpermittedonthestreet, thenonevisitorspaceperunitisrequired within 100 feet of each unit's frontage and cannot be tandem Second Units Residentparking: 1additionaloff-streetparkingspace, tandemallowed, allowedinthefrontyardsetback Single -FamilyAttached Resident Parking
and Multifamily (R-2, R- Studio: 1coveredor garagespaceassignedto eachunit 2c, R- 3) 2, 3 1bedroom: 1coveredorgaragespace, and .5 uncoveredspace 2ormorebedrooms: 1coveredorgaragespaceand1uncoveredspace Guestparking: On -streetparkingcancountforvisitorparkingifthespacesarewithin250feetofeach unit's frontage, otherwise0.5 uncoveredspaceperunitis required Multifamily (R-4) 4,5 Resident Parking
Studioand1bedroom: 1.5 perunit (atleast1spacewithina garageorcarport) 2 bedrooms: 1.9 per unit
3 bedrooms: 2.1 perunit
4 bedrooms: 2.4 per unit
Guestparking: 0. 3spacesperunit
Senior Housing Residentparking: 1 coveredspaceper unit
Guestparking: 0.25spaceperunit canbeuncovered
Senior Congregate Care6 Residentparking: 0.5coveredspacesperunitorasdeterminedbythePlanningCommission. For multiple -familyunits, theparkingshallbewithin150feetofthedwellingitserves Guestparking: 0.25spaceperunit (canbeuncovered)
Mobile Home Parks and Residentparking: 2spacesperunit, tandemallowed Subdivisions Guestparking: 1spaceforeach5 unitsorfractionthereof Model Home 3 spacesper modelhomeplus1 spacepersalesperson Com lexes7
Source: Cityof HighlandLandUseandDevelopmentCode, 2020. 1: WithintheVRdistrict, nomorethanatwo -carspaceandnolessthanaone -carspaceshallbeprovidedwithinagarage, andtheexteriorgaragedoorshallbea minimum of 45 feet from the front property line.
2: ForR-2andR-2Cdistricts, coveredspacesmayberequiredto beinenclosedgarage. Ifitisnotadjacent, thegarageshallbewithin150feetoftheunitbeing served.
3: Covered spaces for apartment buildings are garage spaces. 4: Minimumofoneparkingspaceshallbecoveredwithina garageorcarport. 5: Guestspacesmaybe uncovered.
6: Applicantshall submita parkingstudy for reducedparkingstandards. 7: On -streetparkingadjacenttothemodelhomecomplexmaybecountedtowardtheparkingrequirementifitisfoundthaton -streetparkingwillnotimpact residentialparkingandwillnotobstructtrafficflow.

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1. 6. 2 Building Codes
Buildingandsafetycodesregulateconstructionanddesignmethodsto protectpublichealth, safety, and welfare. However, thesecodeshavethe potentialto constrainthe developmentof housing. Highland hasadoptedandenforcesthe 2019CaliforniaBuildingCode. Exceptfor seismicstandardsandsome additionalrequirementsfor fire hazards, the City's buildingcodesdo not imposeadditional requirements that would materially raise the cost of housing. Thesetypes of improvements are common for all cities in San Bernardino County.

Code enforcement is a critical component of retaining quality neighborhoods and residential structures.

TheCityemploysfull-timebuildinginspectorsandcodeenforcementofficersto examineproperties. As partoftheCity'sresidentialrentalenhancementprogram, theowneroroccupantofanyresidential rentalunitmayrequestthattheCityconductbothaninteriorandexteriorinspectionof saidresidential rental unit(s). Inspectionsmaybe basedupon, but are not limited to, receiptof complaintsfrom occupants, local agencies, or other third parties.

TheCity'srentalinspectionprogramincludesaself -certificationinspectionprocessconductedbythe owner of a residentialrentalunit, andsubsequentright-of-way inspectionfrom the publicright-of-way to certifythathealthandsafety, buildingcode, andfirecodeviolationsdonotexistontherentalunit.

Theprogramensuresrentalhousingiswell -maintained, safe, andadequatefor habitation. PFOgFam-2, ResideRtial Rental PregFan , The City will continue to provide technical support to landlords and propertyownersaboutcompliancewithapplicableCitycodes, pFeGedureseftheResidentialRental R h- nce-.r ent PFgram, andguidanceon howto notify codeenforcementof anyviolations.

1. 6. 3 On- and Off - Site Improvements
TheCityof Highlandrequiresthatadequateaccess, landscaping, lighting, water, andsewer improvementsaccompanyresidentialdevelopmentor the expansionof existingresidentialprojects.

Typicaloff -site improvementsincludecurb, gutter, andsidewalkinstallation, andthe undergroundingof existingoverheadutilitylines. Asaconditionof approval, theCitymayrequirethededicationof improvements, suchasrights -of -way, easements, andthe constructionof reasonableon- andoff -site improvements, to servethe project. Thesetypesof improvementsarecommonfor all citiesinSan BernardinoCounty. Therefore, theseon- andoff -siteimprovementstandardswouldnotmakeit less financially feasible to build housing in one jurisdiction over another.

1. 6. 3. 1 Streets
AllresidentialprojectsmustprovideappropriateroadwaysconsistentwiththeCity'sCirculationElement and adopted road standards.

Collectorstreetsrequirea minimum40 feet wide curb -to -curbandare, generally, 44feet, curb -to -curb, within 66-foot rights -of -way. Residentiallocalstreetsgenerallyrequirea36-foot-wide right-of-way. The Citydoesnotrequireinfillprojectsto provideroadimprovementsbeyondthosenecessaryforsafe access. This reduces the cost of infill housing development, a savingsthat may be passedon to the future buyeror renter. Foranyareaof the City, additionalimprovements, easements, andother dedications may be identified during Site Plan Review.

1. 6. 3. 2 Curbs, Gutters, and Sidewalks
While much of west Highland is developed with curbs, gutters, and sidewalks, there are some infill sites without such amenities.

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Greenfieldsitesonthe eastsideare alsooften in needof suchimprovements. All new residential developmentisrequiredto provideapublicsidewalksystemwithcurbsandguttersunlessdeemed unnecessarybythePlanningCommission. Publicsidewalksareadjacentto publicstreetsandhavea minimum width of 5 feet.

Interiorwalkwaysystemsmayhavevaryingwidths, withaminimumwidthof4 feetunincumbered. The cost of these improvements increasesdevelopment costs but are necessaryto facilitate pedestrian accessand movement in urban areas of the City, and to enhance the safety of pedestrian traffic.

1. 6. 3. 3 Water, Sewer, and Storm Drains
Consistentwith Statelaw, MS4Permits, SanBernardinoCountyHydrologyManualcriteria, or local drainagemasterplan, asapplicable, allprojectsmustdemonstratetheabilityto meetwater, sewer, and drainage requirements consistent with San Bernardino Flood Control District' s Comprehensive Storm Drain Plan. Feesand infrastructure requirements are established by the EastValley Water District EVWD) and similar for all communities in the region. Careful site design and location can reduce or mitigatethe associatedcostof theseimprovements. Forexample, vacantlandin an infill areacould provideaffordablehousingwherethereisexistingandadequatewater, sewer, anddrainage infrastructure.

1. 7 Development Fees
AvarietyoffeesandassessmentsarechargedbytheCityandotheragenciesto coverthecostof processingdevelopmentpermitsandprovidinglocalservices. Thesefeesarenecessaryto ensurequality projectreviewandtocovercostsassociatedwiththeimpactofnewhousing. Developmentfeesand exactionsincreasethe costof development. Thesecostsare passeddownto the homeownerand renter, reducing the affordability of housing.

Communitydevelopmentandengineeringfeesareestablishedto coverthecostofstaffreview. Without entitlementprocessingfees, theCitywouldbeunableto providequalityreviewof eachproject, resultingininappropriateorinadequatedevelopment. ThesefeesoffsettheCity'sdevelopmentreview costsandare not designedto increasethe costof development. Theaffordablehousingfee isa per -unit feethatmaybepaidbytheapplicantin lieuof providingaffordablehousing, asdiscussedinSection

1.5.3, Inclusionary Housing Ordinance.

WhenprocessingaMajorDesignReviewandCUPconcurrently, theCityprovidesreliefto theapplicant byonlychargingonedepositup -front. TheCityonlytakesadepositfortheCUPandappliesanyunused funds from the CUPdeposit to cover the design review. This prevents the applicant from spending a financial resource earlier than necessary.

Developmentimpactfeesarechargedon a per -unit basisto providefundsto offset the anticipated impactsof populationgrowth. Newhousing, andthereforemoreresidents, mayresultinanincreasein vehicletrips, parkusage, schoolenrollment, andemergencyservicecalls. Developmentimpactfeesare carefullycreatedto ensurethatqualityservicesandfacilitiesareprovidedto Highlandresidentswithout undulyburdeningdevelopment. TheCityannuallyreviewsitsdevelopmentimpactfeesto ensurethe feesarefair andadequate. Table5 showsfeeschargedfor newhousingprojectsin Highland.

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Table 5. Residential Development Fees
Fee Single -Family Attached Single -Family Attached/
Multifamily
Minor Project ( three or fewer dwelling units)
Community DevelopmentFees
Inclusiona Housing 3,750. 00 3,750. 00
Staff Review Permit 45.00 45. 00
Minor Design Review — Fixed Fee 3,450. 00 3,450. 00
Minor Conditional Use Permit— Fixed Fee 1, 425. 00 1,425. 00 CommunityDevelopmentFees/DepositPerUnit 1 $ 8, 670. 00
EngineeringFees'
ParcelMapReview54lots
2 7 $ 5,300. 00 $ 5,300. 00
Impact Fees
Law Enforcement 276. 23 436. 83
Fire Suppression 981. 10 318. 42
Local Circulation System 4,582. 61 3,058. 86
Regional Circulation System 13,289. 35 8,872. 35
Regional Flood Control 1,068. 24 457. 13
General Facilities, Vehicles, and Equipment 1,224. 67 1,224. 67 Library 1,126. 68 1,084. 50
CommunityCenter 1,404. 31 1,351. 22
Park Land Acquisition & Park Facilities Development 4,573. 40 4,400. 64 Total Fees Per Unit 3 37, 196.64 29, 874. 61
Major Project ( more than three units)
Community DevelopmentFees
Inclusiona Housing 3,750. 00 3, 750. 00
Major Design Review Deposit
2, 4 8, 500. 00 8,500. 00
Major Conditional Use Permit Deposit
2, 4, 5 11, 100. 00 11' 100. 00
5 CommunityDevelopmentFees/DepositPerUnit 23, 350. 00
Engineering Fees'
ParcelMapReview54lots2 5,300. 00 5,300. 00
FinalTractMapReview >-5 lots
2, 4
1 $ 15,300. 00 15,300. 00
Impact Fees
Law Enforcement 276. 23 436. 83
Fire Suppression 981. 10 318. 42
Local Circulation System 4, 582. 61 3,058. 86
Regional Circulation System 13,289. 35 8,872. 35
Regional Flood Control 1,068. 24 457. 13
General Facilities, Vehicles, and Equipment 1,224. 67 1,224. 67 Library 1,126. 68 1,084. 50
CommunityCenter 1,404. 31 1,351. 22
Park Land Acquisition & Park Facilities Development 4, 573. 40 4,400. 64 Total Fees Per Unit 3 72, 476. 64 65, 154. 61
Source: CityofHighlandPlanningDivision, 2020.

1. Someengineeringfeesnotincluded, suchasgradingplancheckandgradinginspection, becausefeeisbasedonprojectspecificssuchasadollar amountpercubicyardofsoilmoved.

2. RCSfullyburdenedhourlyrateforallpersonnelinvolved, plusanyout-of-pocketexpensesforcontractpersonnel, specialequipmentorsupplies, other Stateorcountyfeesapplicableagainstaninitialdeposit.

3. Totalfeesperunit, includingcommunitydevelopmentfees/depositperunit, engineeringfees, andimpactfeeslistedinthistable.

4. ForprojectsthataredeemedtobelesscomplexafterreviewbytheDRC, theamountoftheinitialdepositcanbereducedaccordinglybytheCommunity Development Director.

5. MajorConditionalUsePermitReviewDepositwillnotbeneededforprojectsonmultifamilysitesidentifiedintheHousingElementashavingpotentialto accommodatethe lower -incomeR29ionalHousingNeeds Allocation.

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1. 8 Permit Approval Process
Highland'spermittingprocessisdesignedto ensurehigh -qualityandaestheticallypleasingdevelopment thatiscompatiblewithadjacentusesandtheCity'sruralcharm. Developmentanddesignreviewfees, aswell asthe time theseprocessestake, increasethe costof constructingnew housingor rehabilitating existingunits. Toensurethatthe permitapprovalprocessisnotoverlyburdensome, theCityestablished the "ComeHometo Highland" program, whichcommitsthe Cityto beinganactivepartnerin providing housing. ThisprogramservesasanactionplanforCitystaffto followwhenreviewingallcommercial andresidentialdevelopmentprojects. Theprogramisintendedto dothe following:

ImproveandenhanceHighlandthroughthe promotionof its residentiallifestyleandfamily - oriented community
Encouragehousingmaintenance, rehabilitation, development, andoccupation Encouragecooperation between City government, local service providers, and residents in facilitating responsible growth
TheCityof Highlandiscommitted to the followingactionplanto facilitate andstreamlinethe development review process:

Thefeesto processentitlementshouldbedeposit, andanaccountingof timebywhichstaff processestheentitlementshallbeprovidedtotheprojectapplicantwithin30calendardaysof the project' s conclusion.

Pre -application meetings should be offered free of charge.

Upon acceptance of an application for an entitlement, the Community Development Department and Public Works Department shall bring the application before the appropriate reviewingbodywithin 90 daysof acceptance, barringspecialenvironmental, traffic, or similar technical report requirements.

Fixedfeesfor plancheckingandinspectionservicesuponthe issuanceof permits.

Firstplancheckshalltakenomorethan2weeks, andif determinedto takelonger, staffshall notify applicant as to the reasonsfor the delay.

Three levelsof decision -making bodies in the City govern the development review process: The CommunityDevelopmentDepartment, thePlanningCommission, andtheCityCouncil.

Applicantsareencouragedto submita pre -applicationto meetwith Citystaff to discussa projectprior to submittingaformal application. Thisprocessprovidesthe applicantwith anopportunityto make changesthat will ultimatelysavetime andmoneybyhavinga completeapplicationfrom the start. When an application is determined complete ( within 30 days, as required by the Permit Streamlining Act), the PlanningDivisionindicateswhether or not a userequiresdiscretionaryreview. The "ComeHometo Highland" programguaranteesthatanyrequestfor anentitlementthatrequiresapprovalbythe PlanningCommissionbepresentedto thenecessarybodywithin90daysof theapplicationbeing deemedcomplete (excludingtime for CEQAreview). Limitingprocessingtime reducesthe impactof designreviewandother forms of discretionaryreview. Thereareseveraltypesof reviewnecessitatedby certain project characteristics, as described below.

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1. 8. 1 Staff Review Permit
A StaffReviewPermitisa reviewof the projectuseto ensurecompatibilitywith the City's land usesand development standards. Approval is determined by the Community Development Director or their designee (typicallythe City's PlanningTechnician). TheStaff ReviewPermitisprocessedconcurrently with the Minor DesignReviewprocess, whenapplicable. Followinga reviewof the application, the CommunityDevelopmentDirectorshallprepareawrittendecisionwhichshallcontainthefindingsof fact upon which said decision is based. A Staff Review Permit application may be approved in whole or in part, with or without conditions, if the followingfindingscanbemade:

1. Theproposedusewill bearranged, designed, constructedandmaintainedto becompatiblewith the character of the area as intended by the general plan, and is consistent with the goals, objectives, policies and programs of the general plan;

2. Theproposeduseispermittedwithintheapplicabledistrict, orspecificplan, andcomplieswith all applicable zoning provisions;

3. Theproposeduse, togetherwith applicableconditions, will not bedetrimentalto the public health, safetyor welfareor materiallyinjuriousto propertiesor improvementsinthe vicinity;

4. Thearchitectureand landscapingproposedobservecommunitystandardsasdescribedin the adoptedgeneralplan, ensuringvisualrelief protectingthe characterof adjacentdevelopment and providing an attractive environment for the public's enjoyment;

5. The proposed use would not result in significant impact to the environment;

6. All other state and federal permits have been obtained; and

7. The site is reasonably safe from flooding.

Inapprovinga StaffReviewPermit, the CommunityDevelopmentDirectorshallrequirethat the useand developmentof thepropertyconformwiththeapprovedsiteplan, architecturaldrawingsand statements submitted in support of the application. Suchconditions may include, but are not limited to, the following:

1. Setbacks, yard area and open spaces;

2. Fences, walls, and screening;

3. Parking, parking areas and vehicle ingressand egress;

4. Landscapingand maintenance of landscapingand grounds;

5. Regulation of signs;

6. Control of noise, vibration, odor and other potentially dangerous or objectionable elements;

7. Limits on hours of operation;

8. Timeperiodfor compliancewith conditionsof approval;

9. Perimeterroadsand properlymaintainedfuel modificationareaswith fire hazardzonesI andII; and

10. Otherconditionsasmaybedeterminedto assurethat developmentwill bein accordancewith the intent and purposes of this title.

Modification or revision of an approved Staff Review Permit may be requested by the applicant. A modification or revision to an approved staff review permit may include, but shall not be limited to,

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change in conditions, expansion, intensity, or hours of operation. The requested modification or revision shallbe processedin the samemannerasthe originalStaff ReviewPermit.

The Staff Review Permit approval by the Community Development Director or designee is final unless appealedto the PlanningCommission. ThePlanningCommission'sdeterminationisappealableto the City Council.

The Staff Review Permit processis not found to be a constraint to development. It provides an objective andnecessaryprocessto ensureconsistencywiththeCity'sGeneralPlanandZoningOrdinanceandthe public health, safety and welfare.

1. 8. 2 Minor Design Review
ThePlanningDivisionprovidesminordesignreviewadministrativelyfor permittedhousingprojectswith three or fewer units to ensure compliance with City's land use and development standards. The Planning Divisionmakesstandardfindingsregardingproject design, whichincludecompliancewith adopted residential design standards and consistency with the City's General Plan LandUse Element and Community Design Element.

An application for minor design review is required for residential projects with three or fewer dwelling units, commercial, industrial and institutional projects not subject to design review which involve the issuanceof a buildingpermitfor constructionor reconstructionof a structurewhichmeetsone or more of the following criteria:

1. Structural additions which do not result in an increase of more than 50 percent of the floor area of the existing building;

2. Theconstructionand/or placementof silos, satellitedishes, antennas, privatewater tanks, roof - orground -mountedequipmentvisiblefromthepublicstreetorsimilarstructuresand equipmenton existingdevelopedpropertiesasdeterminedbythe communitydevelopment director;

3. Signsas required by Chapter 16.56 HMC;

4. Residential construction involving three or fewer dwelling units; or

5. Landscapeplans for projects requiring minor design review.

TheCommunityDevelopmentDirectorisauthorizedto approveor denyapplicationsfor designreview and to impose reasonable conditions upon such approval, subject to the right of appeal. Conditions may include, but shall not be limited to, requirements for open spaces, screening and buffering of adjacent properties, fencesandwalls; requirementsfor installationandmaintenanceof landscapinganderosion control measures, regulation of vehicular ingressand egress, and traffic circulation; regulation of signs; gradingrequirements; regulationof hoursofoperation; establishmentof developmentschedulesor time limits for performanceor completionof improvements; andsuchother conditionsasthe CommunityDevelopmentDirectormaydeemnecessaryto ensurecompatibilitywith surroundinguses; to preservethe publichealth, safetyandwelfare; andto enabletheCommunityDevelopmentDirector to makethe findingsnecessaryfor approval. TheCommunityDevelopmentDirectormayat hisor her option refer anyminor designreviewto PlanningCommissionfor action. Anydeterminationof the communitydevelopmentdirectormaybeappealedto theplanningcommissionwithin10calendardays of the community development director action.

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Design Review and Minor Design Review Criteria
The criteria for major and minor design review is based on the following:

1. The design and layout of the proposed development is consistent with the applicable elements ofthegeneralplan; anycitydesignguidelineswhichmaybeestablished; andanyadopted architectural criteria for specialized areas such as designated historic districts, theme areas, specific plans or planned developments.

2. Thedesignandlayoutof the proposeddevelopmentwill not unreasonablyinterfere with the use and enjoyment of neighboring existing or future developments, and will not create a traffic or pedestrian hazard.

3. Thedesignof the proposeddevelopmentiscompatiblewith the characterof the surrounding neighborhood and will maintain a harmonious, orderly and attractive development.

4. Thedesignof theproposeddevelopmentwouldprovideadesirableenvironmentfor its occupantsandvisitingpublicaswell asits neighborsthroughgoodaestheticuseof materials, texture and color that will remain aesthetically appealing and will retain a reasonably adequate level of maintenance.

Through Program 29, Objective Design Standards the City will amend the major and minor design review criteria outlined above to remove potential constraints to development by ensuring objective design standards and criteria for residential projects requiring design review.

Design Review and Minor Design Review Findings
TheCommunityDevelopmentDirectorshallmakethe followingfindingsbeforeapprovinga minor design review application:

1. That the proposed project is consistent with the general plan or specific plan;

2. Thattheproposeduseisinaccordancewiththeobjectivesofthistitle, andthe purposesofthe land use district in which the site is located;

3. Thattheproposeduseisincompliancewithcitydesignandlandscapestandardsandcriteria; and

4. Thattheproposeduse, togetherwiththe conditionsapplicablethereto, will notbedetrimental to the publichealth, safety, or welfareor will not be materiallyinjuriousto propertiesor improvements in the vicinity of the site.

Adjacentpropertyownersshallbenotifiedbymailofthedate, timeandnatureof thedesignreviewat least10daysprior to the publicmeeting. Anydeterminationof the CommunityDevelopmentDirector maybe appealedto the PlanningCommissionwithin 10calendardaysof the CommunityDevelopment Director action.

These findings are consistent with those permitted in accordance with 65589.5( d) and are necessaryto ensureconsistencywith the City'sGeneralPlanandZoningOrdinance. ThroughProgram29, Objective Design Standards, the City will ensure that any newly developed design standards are objective, consistent with the requirements of SB330, 2019. Further, through Program 8, By -Right Development onPreviouslyIdentifiedSites, theCitywilladoptanordinanceto permiteligibledevelopmentswithout discretionaryaction. Further, asdetailedinProgram19, EmergencyShelters, TransitionalHousing, --and

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PermanentSupportiveHousing, andSingleRoomOccupancy, andProgram27 Low -BarrierNavigation Centers, the Citywill ensurethat theseusesare permittedasdetailed, without discretionaryaction.

1. 8. 3 Major Design Review
Major Design Review applies to new housing projects consisting of four or more units. Major Design Reviewis performedbythe PlanningCommission. Major DesignReviewprovidesthe Planning Commissionwith anopportunityto assessa projectfor consistencywith the applicableelementsof the City'sGeneralPlananddesignguidelines, andidentifypotentialdesignissuesthatmaydetractfromthe aesthetics, health, andsafetyof neighborhoods. Theseprojectswill be reviewedfor consistencywith the designanddevelopmentstandardsprovidedin the LandUseandDevelopmentCode, GeneralPlanLand UseElement, andCommunityDesignElement. PlanningCommissionreviewtakesplaceduringthe time periodthe developmentapplicationis routedfor agencycommentsand/or the CEQAprocess, thus minimizingoverallprocessingtime for the project. PlanningCommissionapprovalisfinal unless appealed to the City Council.

An applicationfor designreviewby PlanningCommissionis requiredfor all commercial, industrial, institutional, and residentialprojectsof four or moredwellingunitsinvolvingthe issuanceof a building permitfor constructionor reconstructionof a structurewhich meetsthe followingcriteria:

1. New construction on vacant property;

2. Structural additions which are equal to 50 percent or more of the floor area of existing on -site buildings;

3. Reconstructionprojectswhichareequalto 50 percentor moreof the floor areaof existing buildings;

4. Signsas required by the sign regulations, Chapter 16.56 HMC;

5. Projectsinvolvingasubstantialchangeorintensificationof landuse, suchastheconversionof an existing residential structure to an office or commercial use;

6. Outdoor storage areas;

7. Landscapeplans for projects requiring design review; or

8. Major public works projects, as feasible.

PlanningCommissionisauthorizedto approveordenyapplicationsfordesignreview, andto impose reasonable conditions upon such approval, subject to the right of appeal. Conditions may include, but shall not be limited to, requirements for open spaces, screening and buffering of adjacent properties, fences and walls; requirements for installation and maintenance of landscaping and erosion control measures, regulation of vehicular ingress and egress, and traffic circulation; regulation of signs; grading requirements; regulation of hours of operation; establishment of development schedules or time limits for performanceor completionof improvements; andsuchother conditionsasPlanningCommission maydeemnecessaryto ensurecompatibilitywithsurroundinguses; to preservethepublichealth, safetyandwelfare; andto enablePlanningCommissionto makethefindingsnecessaryforapproval.

ThePlanningCommissionshallmakethefollowingfindingsbeforeapprovingamajordesignreview application:

1. Thatthe proposedprojectisconsistentwith the generalplanor specificplan;

2. Thattheproposeduseisinaccordancewiththeobjectivesofthistitle, andthepurposesof the land use district in which the site is located;

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3. Thatthe proposeduseisincompliancewithcitydesignandlandscapestandardsandcriteria; and

4. Thatthe proposeduse, togetherwiththeconditionsapplicablethereto, will notbedetrimental to the publichealth, safety, or welfareor will not bemateriallyinjuriousto propertiesor improvements in the vicinity of the site.

Propertyownerswithin300feetoftheprojectshallbenotifiedbymailofthedate, timeandnatureof the design review at least 10 days prior to the public meeting.

Thesefindingsareconsistentwith thosepermitted in accordancewith CaliforniaGovernmentCode Section65589.5(d) andare necessaryto ensureconsistencywith the City'sGeneralPlanandZoning Ordinance.

NohousingdevelopmentapplicationhaseverbeendeniedintheCityasa resultoftheCity'sdesign reviewprocess, andtheCityhasnotfoundtheprocesstoposeanyconstraintsonhousingsupplyand affordabilityintheCity, includingtherequiredfindingsasoutlinedabove. However, throughProgram 29, ObjectiveDesignStandards, theCitywillamendthemajorandminordesignreviewcriteriaoutlined in Section 1 8 2 to ensure objective design standards and criteria for residential protects requiring design review, which help remove potential constraints to development by providing reasonable processingtimesandexpectations. Additionally, throughimplementationofProgram29, theCitywill ensurethatanynewlydevelopeddesignstandardsareobjective, consistentwiththerequirementsofSB 330, 2019. Further, throughProgram8, By -RightDevelopmenton PreviouslyIdentified Sites, the City willpermiteligibledevelopmentswithoutdiscretionaryaction. Further, asdetailedin Program19, Emergency Shelters, Transitional Housing, Permanent Supportive Housing, and Single Room Occupancy, and Program27 Low -BarrierNavigationCenters, the Citywill ensurethat theseusesare permitted as detailed, without discretionary action.

1. 8. 4 Conditional Use Permit
TheCUPprocessistheCity'sopportunityto ensurecompatibilitywithsurroundinguses, andthisreview canoccurconcurrentlywith Major DesignReview. TheexistingLandUseandDevelopmentCode requiresaCUPfor multifamilyprojects, withtheexceptionof single-familyattachedduplex, triplex, and fourplexhousingintheR-3andR-2CzonespermittedbyStaffReviewPermit; multifamilyattached projectsintheR-4orHDSdistricts; andmultifamilyusesonmultifamilysitesidentifiedinthe Housing Element. In the caseof the R-4 and HDS, only a Design Review Processis required.

ThePlanningCommissionisresponsiblefor reviewingallapplicationsthatrequireaCUPandthedesign reviewofaproject. TypicalfindingsforCUPapprovalincludeconsistencywiththegoals, policies, and objectivesof the GeneralPlan; suitabilityof the sitefor the proposeduseor development; and adequacyof water, sanitation, andutilities. Followinga reviewof the application, the Planning Commissionshallprepareawrittendecisionwhichshallcontainthefindingsoffactuponwhichsuch decisionisbased. ThePlanningCommission, orCityCouncilonappeal, mayapproveaconditionaluse permitapplicationinwholeorinpart, withorwithoutconditions, onlyifallofthefollowingfindingsof fact can be made in an affirmative manner:

1. Theproposeduseispermittedwithinthesubjectdistrictpursuantto theprovisionsofthis section, andcomplieswith allof the applicableprovisionsof thistitle; andisconsistentwith the goals, policies, andobjectivesoftheHighlandgeneralplan, andwiththeapplicable development policies and standards of the city;

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2. Theproposedusewouldnotimpairtheintegrityandcharacterofthedistrictinwhichit isto be established or located;

3. The site is suitable for the type and intensity of use or development which is proposed;

4. Thereareadequateprovisionsfor water, sanitation, andpublicutilities and servicesto ensure publichealthandsafety;

5. Theproposedusewill not bedetrimentalto the publichealth, safety, or welfare, or materially injuriousto propertiesandimprovementsin the vicinity; and

6. The proposed usewould not result in a significant effect on the environment.

Ingrantingaconditionalusepermit, thePlanningCommission, ortheCityCouncilonappeal, shall require that the useand development of the property conform with a site plan, architectural drawings, or statements submitted in support of the application, or with such modifications thereof as may be deemednecessaryto protectthe publichealth, safety, andgeneralwelfareandto securethe objectives ofthegeneralplan. ThePlanningCommission, ortheCityCouncilonappeal, mayalsoimposesuch other conditionsasmaybedeemednecessaryto achievethesepurposes, including, but not limited to, the following matters:

1. Requirements for setbacks, yard areas, and open spaces.

2. Fences, walls, buffers, and screening.

3. Parking, parking areas, and vehicular ingress and egressin addition to the minimum requirements of Chapter 16. 52 HMC.

4. Landscapingand maintenance of landscaping and grounds.

5. Regulation of signs.

6. Control of noise, vibration, odors, and other potentially dangerous or objectionable elements.

7. Limits on hours of operation or duration of approval.

8. Timeperiodwithin whichthe proposeduseshallbedeveloped.

9. Requirements for street improvements and dedications.

10. Building design and elevations.

11. Suchother conditions as may be determined to assurethat development will be in accordance with the intent and purposes of this title.

12. Reasonableguaranteesof compliancewith requiredconditions, suchasa deedrestrictionor requiringthe applicantto furnish securityinthe form of moneyor suretybondinthe amount fixed by the administering agency.

13. Requirementsfor periodicalreviewbythe planningcommission, andsuchother conditionsas theplanningcommissionmaydeemnecessaryto ensurecompatibilitywithsurroundinguses, to preservethe publichealth, safety, andwelfare, andto enablethe commissionto makethe findings required by this subsection.

Revisionsor modificationsof conditionalusepermitsmayberequestedby the applicantandshallbe processedinthesamemannerastheoriginalconditionalusepermit. Further, the PlanningCommission mayperiodicallyreview, modify, orrevokeaconditionalusepermittoensurethatit isbeingoperatedin a manner consistent with conditions of approval or in a manner which is not detrimental to the public health, safety, or welfare, or materiallyinjuriousto propertiesinthe vicinity. If, after review, the commission deems that there is sufficient evidence to warrant a full examination, then a public hearing

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date shall be set. At such public hearing, the planning commission may modify or revoke the permit pursuantto theprovisionsofSection16.08.220, Revocationof Permits, ofthe LandUseand Development Code.

Design review is based on criteria included within the General Plan Land Use Element and Community Design Element. The CUP (with Major Design Review) process typically takes 9 to 12 weeks, not including the time required by CEQAif an Environmental Impact Report is necessary.

1. 8. 5 General Plan Amendment/ Zone Change
ProjectsrequiringaGeneralPlanAmendmentor zonechangerequirereviewbythe Planning Commissionandapprovalbythe CityCouncil, regardlessof proposeduse. However, the Citytypically reduces the timeframe for this legislative step by processing, where feasible, the discretionary permits at the sametime. Alternatively, the Cityprovidesa processfor avariance, which mayreduceany unnecessaryhardshipsrelatedto requeststo deviatefrom currentzoningrequirements. Approvalto grantavarianceisdeterminedbytheCommunityDevelopmentDirector. Avariancemaybegranted based on the following findings:

1. That strict or literal interpretation and enforcement of the specified regulation would result in practicaldifficulty or unnecessaryhardshipnot otherwisesharedbyotherswithin the surrounding area or vicinity;

2. That there are exceptional or extraordinary circumstances or conditions applicable to the propertyinvolvedor to the intendeduseof the propertywhichdo not applygenerallyto other properties in the vicinity and under the same zoning classification;

3. That the strict interpretation and enforcement of the specified regulation would deprive the applicantof privilegesenjoyedbythe ownersof other propertiesin the vicinity andunderthe same zoning classification;

4. Thatthegrantingofthevariancewillnotconstituteagrantofspecialprivilegeinconsistentwith the limitations on other properties in the vicinity and under the same zoning classification;

5. Thatthe grantingof the variancewill not bedetrimentalto the publichealth, safetyor welfare, or materially injurious to properties or improvements in the vicinity; and

6. Thatthegrantingofthevarianceisconsistentwiththeobjectivesandpoliciesofthegeneral plan and the intent of this title.

Inapprovingavariance, reasonableconditionsof approvalmaybeimposed. Thefollowingconditionsof approval for a variance may include, but shall not be limited to:

Requirements for open spaces, fences, walls, and screening buffers; requirements for landscapinganderosioncontrol measures, includingmaintenancethereof;

2. Requirements for dedications and street improvements;

3. Regulation of vehicular ingress and egress and traffic circulation; and

4. Regulation of hours of operation, and such other conditions deemed necessary to ensure compatibilitywith surroundinguses, to preservethe publichealth, safety, andwelfare, andto enable the reviewing authority to make all the findings required above.

TheCity'svarianceprocessisnotfoundto beaconstraint, andinsteadprovidesforequityinuseof propertyandcanpreventunnecessaryhardshipsthatmightresultfromastrictorliteralinterpretation and enforcement of certain zoning regulations.

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1. 8. 6 Processing Time
Developmental review is the primary way to ensure that new residential projects reflect the community' sgoals and contribute to improving local quality of life. The time it takes to obtain permits from the Citycanaffect overallproject cost, andthereforeimpactthe costof housingandthe successof development in the community.

Highlandvaluesthe time andmoneyof its developmentapplicants. TheCityreducedits processing times through enforcement of the " Come Hometo Highland" program, which commits the City to establishingfixedfeesfor severalforms of review, andensuresthat a discretionarypermitapplicationis brought to the appropriate review body within 90 days of the application completeness determination.

Table6 showsthe averageprocessingtimesfor variousproject applicationsand reviews.

Table 6. Permit Processing Times
Type of Application Timeframe ( days)
Zone Change 90
Tentative Tract or Parcel Map 90
Conditional Use Permit 90
Variance Review 45
Lot Line Adjustment 60
Staff Review ( Design/Use 5- 10
Minor Design Review 45
Major Design Review 60- 90

1. 8. 7 Special Business License Provisions: Crime Free Multiple - Family Rental -Housing Program
The Crime FreeMultiple -Family Rental -Housing Program is a partnership with the County, property managers, owners, landlords and residents. The program is run by the San Bernardino County Sheriff's Departmentwith the goalof reducingcrimethroughcommunitypartnershipsandpro -activestepsto improvethequalityof lifeforthecommunity. Theprogramsconsistofthreephasestowardsmakinga propertyasaferlivingenvironmentforthetenants. Thephasesmustbecompletedunderthe supervision of the local sheriff' s station. Property managersand owners can become individually certifiedafter completingtraining in eachphaseandthe propertycanbecomecertifiedwhenall phases are completed. The applies to •• Mat
Theprogramaimsto increasecommunityparticipation, provideaccountabilityfor propertyowners, and lowermaintenancecosts. Theprogramphasesimprovepublicsafetyfor tenants, propertyowners, and the community. PhaseIof the programincludesfree classroominstruction, which includesestablishing fair screeningandthe legalrightsand responsibilitiesof ownersandmanagers. PhaseIIof the program includesa propertysurvey. Stafffrom the localsheriff'sstationconductsaninspectionof the property usingCrimePreventionThroughEnvironmentalDesign (CPTED) principles. CPTEDisa nationally acceptedmulti -disciplinaryapproachto deterringcriminalbehaviorthrough environmentaldesign. The property survey is strictly an on -premise inspection.

As outlined in Section 5.34.020 of the Highland Municipal Code ( Special business license provisions — Crimefree multiple -family rental -housingprogram), prior to obtainingavalidCitybusinesslicense, the ownersor operatorsof anypropertythat containsfour or more rental units (or rentalspaces) that are

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beingrentedoutfor residentialdwellingpurposesmustcomplywith allof thefollowingcrimefree multiple - family rental - housing program requirements:

Complete a crime free multiple -family rental -housing program seminar to be provided by the Highland police department (" seminar"); and
Include a crime free lease or rental agreement addendum (" addendum") or clause in the lease or rental agreement similar to the crime free lease or rental agreement addendum in any leasesor rental agreementsthat are executed, modified or extendedafter the effective date of the ordinance codified in this chapter. The city clerk shall maintain a sample addendum form for use by businessessubject to the provisions of this chapter.

The program applies to any property that contains four or more rental units that are being rented out for residential dwelling purposes and does not target specific groups or classes However, to mitigate anypotentialimpactson affirmativelyfurtheringfair housingthroughoutthe City, the Cityisgoingto amend the Municipal Code to eliminate the Crime Free Multiple -Family Rental Housing Program ordinanceandcorrespondingprogramrequirementsasoutlined in Program2 Multiple -FamilyRental Program.
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the addendum and, if applicable, shall Feview anyGeeFd*RatE)Fshall previde, leases
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1. 9 Housing for Persons with Disabilities
EffectiveonJanuary1, 2002, SB520amendedHousingElementlawandGovernmentCodeSection 65008 to require localities to analyzethe constraints on housing for persons with disabilities. The City's adoptedbuildingcodes (includingthe2019CaliforniaBuildingCode, CaliforniaExistingBuildingCode,

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and California Residential Code [ Title 24]) require that new residential construction comply with the Federal Americans with Disabilities Act ( ADA). Highland has the authority to enforce state accessibility laws and regulations ( California Code of Regulations Title 24) when evaluating new construction requests. ADAprovisionsincluderequirementsfor aminimumpercentageof unitsinnewdevelopment to befullyaccessibleto peoplewithphysicaldisabilities. Compliancewithprovisionsofthe FederalADA isassessedandenforcedby Highland's BuildingOfficial. Program17of the HousingElementwill provide resources for information on home retrofits and accessibility in ADUsto increase the supply of units available for people with disabilities.

1. 9. 1 Reasonable Accommodation
TheCityof Highlandunderstandstheimportanceof reducingbarriersto provideadequatehousingfor personswith disabilities. Chapter16.40intheLandUseandDevelopmentCodeprovidesaformal processfor requestingreasonableaccommodationsfor personswithdisabilitiesseekingequalaccessto housingunderthe FederalFairHousingActandtheCaliforniaFairEmploymentandHousingActinthe application of zoning laws and other land use regulations, policies, and procedures. A reasonable accommodation refers to actions that a city takes to modify land use and zoning regulations affecting housingfor peoplewith disabilities. A reasonablemodificationistypicallya structuralchangemadeto existingpremisessothat a personwith a disabilitycanfully usethe premises.

Requestsfor a reasonable accommodation are submitted on an application provided by the Community Development Department, or in the form of a letter. Requestsare reviewed by the Director of CommunityDevelopmentandwrittendeterminationisprovidedbythedirectoroftheirdesigneewithin 45 daysthat either grant, grantwith modifications, or denya requestfor reasonableaccommodation.

Written determinationsto grantor denya requestfor reasonableaccommodationsshallbebasedon the following findings:
a. Whether the housing, whichisthe subjectof the request, will beusedbyan individualwith disabilitiesunderthe FederalFairHousingAct andthe CaliforniaFairEmploymentandHousing Act.
b. Whether the request for reasonable accommodation is necessaryto make specific housing available to an individual with a disability under the Federal Fair HousingAct and the California Fair Employment and Housing Act.
c. Whether the requested reasonable accommodation would impose an undue financial or administrative burden on the city.
d. Whether the requested reasonable accommodation would require a fundamental alteration in the natureof a city programor law, includingbut not limitedto landuseandzoning. e. Potential impact on surrounding uses.
f. Physical attributes of the property and structures.
g. Alternative reasonable accommodations which may provide an equivalent level of benefit.

Ingrantingarequestfor reasonableaccommodation, the reviewingauthoritymayimposeany conditions of approval deemed reasonable and necessaryto ensure that the reasonable accommodation would complywith the findingsoutlinedabove. A determinationbythe reviewingauthorityto grantor denya requestfor reasonableaccommodationmaybeappealedto thePlanningCommissionin compliance with Section 16.08. 210, Appeals, the Land Use and Development Code.

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Findings to ensure consistency with
the City's GeneralPlanandZoningOrdinanceare necessaryandnot foundto beaconstraint. However, the City will amend the reasonable accommodation findings related to potential impact on surrounding uses andphysicalattributesof the propertyand structureto removepotentialconstraintsfor housing designedfor personswith disabilitiesandto ensureconsistencywith fair housingrequirementsandthe federal Fair HousingAct as part of Program 17 Housing for Persons with Disabilities. Through Program 17, Housingfor Personswith Disabilities, of the HousingElement, the Citywill alsocontinueto provide a processbywhichrelieffromlanduse, zoning, or buildinglaws, rules, policies, practices, and/or procedurescanbealleviatedforthosewithdisabilities, includingpersonswithdevelopmental disabilities. Furthermore, the Citywill promotethis procedureby providinginformationon its website that is easily accessible.

TheCityLandUseandDevelopmentCode'shandicappedparkingrequirementsareestablishedby, and intended to be identical to, the requirements established by the State of California. Residential projects providinghandicappedspacesarerequiredto locatethespacesascloseto buildingentrancesas possibleandto followCitywideregulationsintermsof size, striping, andsignage. Handicappedparking standards for residential usesare not different from parking standards for other uses.

1. 9. 2 Group Homes and Residential Care Facilities
Grouphomesandresidentialcarefacilitiesareoftenaresourcefor personswithadisabilityinneedof special care. Largeresidential care facilities serving seven or more persons, called "Board and Care Facilities" in the usestable, areconditionallypermitted in multifamilyzones (R-2, R-2C, R-3, R-4, and HDS), andconditionallypermittedin commercialzones (CG, NC, PC, VC). TheCitydoesnot haveany occupancyrestrictionsbasedon relatednessor familyties in anylandusesor zoningdesignations. See additional use details in Section 1.4. 1, Group Homes and Residential Care Facility.

Program 18, Group Homes and Residential Care Facilities, is proposed to amend the Zoning Code as detailed in Section 1 4 1 to ensure compliance with housing law and fair housing requirements to remove constraints on and prevent discrimination against group homes and affirmatively further fair housing in the City.

1. 9. 3 Senior Housing and Facilities
Otherforms of housingthat mayassistpersonswith adisabilityincludeseniorindependentliving projects, residentialcarehomesforolderadults, congregatecare, andconvalescentcare. Senior independentlivingprojectsarepermittedwithaStaffReviewPermitintheA/EQ, R-1, VR, andEHV zones, andconditionallypermittedinmultifamilyzones (R-2, R-2C, R-3, R-4, andHDS) andthemixeduse zone (MU). Congregatecare, assistedliving, andconvalescentcarehomesareconditionallypermittedin multifamily, mixeduse, andcommercialzones. Residentialcarefacilities, whichcanincluderesidential care facilities for older adults per the City' s definition, serving seven or more persons, are conditionally permitted in multifamilyzones (R-2, R-2C, R-3, R-4, andHDS).

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2 Market Constraints
Thissectionidentifiesthosenon -governmentalmarketfactorsandotherfinancialfactorsthat may affectthe costof newhousing. Marketconstraintsto the developmentof residentialhousingincludethe cost of land, the cost of construction, and financing. Changesin the financial markets, changes in construction material costs, and other factors all affect the feasibility of developing new housing in the City. Thissectiondiscusseslandcosts, constructioncosts, andfinancingissues. Althoughthesefactors maycreatebarriersto buildinghousing, theCityhaslesscontroloverbutcaninfluenceorhelpsupport theproductionof affordablehousing. WhiletheCitywasunableto identifyadditionalfactorssubjectto localcontrol directlyrelatedto land, labor, or materialcostsand/or financingthat would significantly reducethe costfor housing, the Citywill continueto implementthe InclusionaryHousingOrdinance throughimplementationof Program4, InclusionaryHousing, of the HousingElement, andwill identify affordablehousingpreservation, rehabilitation, andconstructionopportunitiesfortheexpenditureof acquiredfunds, especiallyfor fundingopportunitiesof housingfor extremelylow-incomehouseholds and households with special needs. In addition, the City recognizesthat land use incentives, such asthe StateDensityBonuslawzoningdesignationsthatofferhigherallowabledensities, andlotconsolidation incentives, canaidin reducingdevelopmentcostsandsupportthe productionof affordablehousing. See Section 4, Analysis of Local Efforts to Remove Constraints and Facilitate Affordable Housing, for further analysis related to policies and programs set forth in the 6th Cycle Housing Element that aim to incentive development and address potential non -governmental constraints.

Furthermore, theCityiscommittedto continueparticipatinginandpromotingregionalandState programsthataddressnon -governmentalmarketconstraintsbyprovidingarangeoffinancingoptions for low- and moderate - income homebuyers and owners. Program 13, Homeowner Assistance Programs, of the HousingElementcommitsthe Cityto promotingthe Countyhomeownerassistance programsandresourcesontheCity'swebsite, andthroughProgram1, HomeownerRehabilitation Program, theCitywillpromotethehomeownerrehabilitationrepairloanopportunitiesofferedthrough the NeighborhoodPartnershipHousingServicesandstriveto improvecoordinationwith the Countyto identify opportunities for increased funding for homeowner rehabilitation.

2.1 Availability of Financing

2. 1. 1 Construction Financing
Constructionfinancingcostsaffectthefeasibilityof buildingnewhousing. Duringthehousingboomof the late 1980s, it was not uncommon for developers to receive construction loans for 100% or more of a project'sestimatedfuturevalue. Followingthehousingmarketdownturnoftheearly1990s, however, financial institutions tightened regulations for construction loans, often requiring developers to put up at least25percentoftheprojectvalue. Thesetrendscontinuetoday, meaningthatdevelopersmust usuallysupplyat least25percentofthe projectvalueupfront, andperhapsmoreif thetotalcostis more than 75 percent of the estimated value of the project.

Although there is no hard threshold for how much required upfront equity is too much before a residentialprojectwouldbeinfeasible, thehighertheproportionof equityrequired, themoreunlikely thatadeveloperwouldproceedwiththeproject. Notonlywouldit requiremoreup -frontcash, but higherequitycontribution meansa project mustbeableto achievean evenhighervalueat completion in orderto generatethe cashflow neededto meet acceptablecash -on -cashreturns. Thesetrendsare anticipated to continue during the planning period.

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2. 1. 2 Mortgage Financing
Althoughrecenteconomicconditionshave seenhousingpricesincreaseandinterest ratesremainlow, buyinga houseor refinancinga mortgageisgettingtougher, asbanksraiserequirementssuchas minimum credit score. Loanapplicants with short credit history, lower incomes, self-employment incomes, or other unusual circumstances have had trouble qualifying for loans or are charged higher rates. This economic barrier could disproportionately affect lower -income, non-White borrowers, makingit harderforthemto closeona loan, especiallyasaresultof theCoronaviruspandemicand resultingeconomicfallout. Theeconomicfallouthasresultedintheunemploymentrateincreaseinthe Cityfrom3.8 percentin2019to 8 percentasof November2020, makingit moredifficultfor unemployed, underemployed, lower -incomeborrowers, andother groupswho historicallyhavefound it the most difficult to get a loan to get a fair loan.

TheHomeMortgageDisclosureAct requiresmanyfinancialinstitutionsto maintain, report, andpublicly discloseloan -levelinformationaboutmortgages. Thisrequirementappliesto all loanapplicationsfor homepurchase, improvements, andrefinancing, whetherfinancedat marketrateorwithgovernment assistance. Thesedatahelpshowwhether lendersareservingthe housingneedsof their communities, theygivepublicofficialsinformationthathelpsthemmakedecisionsandpolicies, andtheyshedlighton lending patterns that could be discriminatory.

Table7 summarizesthe dispositionof loanapplicationssubmittedto financialinstitutionsin 2019for homepurchase, refinance, andhomeimprovementloansinHighland. Theloanoutcomeinformationin the table includesthe proportionof applicationsthat wereapproved, weredenied, or were incomplete or withdrawn by the applicant.

Table 7. Disposition of Home Loans ( 2019)
Loan Type Total Applicants Percent Approved' Percent Denied Percent Other2 Government - Backed Purchase 426 74. 9% 8. 5% 16. 7%
Conventional Purchase 661 73. 4% 7. 3% 19. 4%
Refinance 1,845 58% 16% 25. 9%
Home Improvement 182 35. 2% 51. 1% 13. 7%
Total 3, 114 62. 3% 15. 2% 22. 5%
Source: 2019HomeMortgageDisclosureActLendingActivityMSA/MDbyCensusTractData Approvedincludesloansapprovedbythelenderswhetherornotacceptedbytheapplicant. 2Otherincludesloan applicationsthat wereeitherwithdrawnor closedfor incompleteness.

2. 1. 2. 1 Home Purchase Loons
In 2019, a total of 426 households applied for government -backed loans (Federal Housing Administration, FarmServiceAgency/RuralHousingService, andDepartmentof VeteransAffairs) in Highland. Ofthoseapplications, 75 percentwere approved, and8 percentweredenied. More householdsappliedfor conventionalloansto purchasehomesin Highland, with atotal of 661 applications. A total of 73 percentof the conventionalloanapplicationswereapproved, and 7 percent were denied.

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2. 1. 2. 2 Refinance Loons
The highest number of applications received were for refinance loans, likely because many homeowners are lookingto swapout their old mortgagesfor newloansat record -low rates. A total of 1,845 households in Highland applied for a home refinance loan in 2019. Of those applications, only 58 percentwereapproved, 16percentweredenied, and 26percentwereeitherwithdrawnorclosedfor incompleteness.

2. 1. 2. 3 Home Improvement Loons
In 2019, a total of 182 household applied for home improvement loans in Highland. This isthe lowest number of applications, but had the highest percentage of applications denied. Of the total applications, 51 percentof homeimprovementloanswere deniedby lendinginstitutionsand35 percentwere approved. One of the most important factors that lenders evaluate when reviewing an application is the applicant' s debt -to -income ratio, which indicates how much income the monthly debt takes up. Most homeimprovementloansapplicantsmayhavehighdebt -to -incomeratiosfrom their mortgageloan, which may explain why it is harder to qualify for the additional financing.

2. 2 Construction Costs and Construction Labor Shortage Residential construction continues to face limiting factors, including concerns over regulatory cost burdens, anongoinglaborskillsshortage, andhighercostsandlongerdeliverytimesfor building materials. Factorsthat affect the cost of building a house include the type of construction, materials, site conditions, finishingdetails, amenities, structuralconfiguration, andprojectcharacteristics, suchasthe type and quality of the unit.

Onaverage, 60percentof the final costof a single-familyhomeisattributed to constructioncosts.

Accordingto the U.S. CensusBureau'sAnnualCharacteristicsof NewHousingSurvey, the average contractpricepersquarefootof newcontractor -builtsingle-familyhousesaveragesapproximately $158 per square foot.

Oneindicatorof constructioncostsis buildingvaluationdatacompiledbythe InternationalCode Council. Theunit costscompiledby the InternationalCodeCouncilincludefoundationwork, structural and nonstructuralbuildingcomponents, electrical, plumbing, mechanical, andinterior finish material.

The data is a national average and does not take into account any regional cost differences, nor include the priceof the landuponwhichthe buildingis built, soit shouldbetakeninto accountthat these national averagesare lower than those in California, and that high construction costs lead to higher rentsand homepricesin the State, whicharealsosomeof the highestin the nation. Accordingto the latestbuildingvaluationdatareleasein 2019, the nationalaveragefor developmentcostspersquare foot for apartments and single-family homes in 2019 were as follows:

Type I or II, R-2 Residential Multifamily: $ 148. 82 to $ 168. 94 per square foot Type V Wood Frame, R-2 Residential Multifamily: $ 113. 88 to $ 118. 57 per square foot Type V Wood Frame, R-3 Residential One- and Two - Family Dwelling: $ 123. 68 to $ 131. 34 per square foot
R-4 Residential Care/Assisted Living Facilities generally range from $ 143.75 to $199.81 per square foot
Ingeneral, constructioncostscanbeloweredbyincreasingthenumberof unitsinadevelopment, until thescaleof theprojectrequiresadifferentconstructiontypethatcommandsahigherper -square -foot cost. Apartments of three stories or fewer achieve an economy of scale, provided that the building has

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typical amenities and no structured parking. Mobile homes are significantly lessexpensive, asare precision or factory -built housing products.

Laborcostsalsogreatlycontributeto constructioncosts. Theyaregenerallytwo to three timesthe cost of constructionmaterials. A 2019studyfor SmartCitiesPrevailfoundthat Californialost about200, 000 constructionworkerssince2006. Manylosttheir job duringthe recessionandfound work in other industries. Pre -pandemic, theindustryalreadyfacedthishistoricshortageof skilledlabor, andthelabor gapsmightgetevenlarger, especiallyin stateslikeCalifornia.

It should be noted that these figures were formulated in 2019 and do not reflect 2023 construction costs which are significantly higher.)

2. 3 Land Costs
Thecostof raw, developablelandcreatesadirect impacton the costfor a new homeandisconsidered a possibleconstraint. Landcosts, whencomparedwithprojectedrentsandsalespricesof housing, affectthefeasibilityof construction. Ahighercostof landraisesthepriceof anewhome, whichtypically makes the cost of land a major factor in determining the cost of developing housing. Landcosts are influencedbymanyvariables, includingsupply, demand, location, siteconstraints, andtheavailabilityof publicutilitiesandotherinfrastructure. Basedonavailablelandfor saleasofJanuary2021, theaverage costof undevelopedlandin Highlandisapproximately $167,000peracrefor single-familyzoned developableparcelsand $440,000 peracreof multifamilyzoneddevelopableparcels.

In addition to the basiccost of land, the holding cost is also a consideration in the price of housing.

Holdingcostsvarydependingoninterestratesforacquisitionanddevelopmentloans. Interestratesare beyondthe controlof localjurisdictions. However, landholdingcostscanbe lessenedby reducing processingtimesforbuildingpermitsin mostjurisdictions. Therefore, developerssometimesseekto obtain approvals for the largest number of lots allowable on a parcel of land.

2. 4 Requestsfor Housing Developments at Reduced Densities Statelawrequiresthe HousingElementto includeananalysisof requeststo develophousingat densitiesbelowthoseanticipatedin the sitesinventory. Therealisticcapacityfor sitesidentifiedas appropriateto accommodatelower -incomeunitsin the sitesinventorywere calculatedbasedonthe minimumdensitiespermitted. andGanAsaconservativeestimateof capacitycalculations, the sites analysisestimatedrealisticcapacityfor all sitesidentifiedto accommodatethe City's lower -income RHNAbasedon the minimum permitted density of 20 dwelling units per acre in the City's R-4 zoning designation and Greenspot Village & Marketplace Specific Plan. This does not limit the ability of a projectto bebuiltatthe higherdensitiesallowedundereitherthezoningdesignationortheGeneral Plan However, requeststo develophousingmustadhereto the minimumdensityrequirementsfor those identified sites which are the same densities anticipated in Appendix E. t4^ FLU Additionally, as theyaretheminimumdensitiespermitted, it canbereasonablyanticipatedthatsomesiteswillbe developedat densitiesabovethoseanticipatedinthe sitesinventoryaspropertyownerswill strivefor densities above the minimums assuming developers can earn greater profits for construction on the same parcel of land.

Onequarterof unitsidentifiedto accommodatethe moderateand/ or abovemoderate -incomeRHNA areidentifiedin zonesthat do not requirea minimumdensity. However, a largeportionof the sitesto accommodate the RHNAhave pending projects in varying zonesthat have been included basedon their approveddensities (seeSection4 1 PlannedApproved andProspectiveProjects of AppendixEfor a

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detailed overview of residential development in the pipeline and approved densities). Usingthis recent developmenttrend datafrom eight approvedpipelineprojects the projectsreachedapproximately66 percentof their maximumdevelopmentcapacity (calculatedasa percentof their approveddensities over their maximum densities permitted) including one development at 100 percent of the maximum densitypermittedunderthe zoningdesignationtwo developmentsat 77and74 percentof the maximumdensitiespermitted undertheir respectivezoningdesignationsandtwo developmentsat 66 percentof the maximumdensitiespermittedundertheir respectivezoningdesignations. This developmentcapacitywasusedto calculatethe anticipateddensitiesinthe analysisfor moderateand above -moderate income units on vacant and underutilize sites. Basedon the numerous pipeline projects detailed in Appendix Ethat surpassed those density assumptions it is reasonable to assumethat projectswill notrequestto develophousingatdensitiesbelowthoseanticipatedintheanalysisandwill not constitute a constraint to development. In addition, the City's development review team proactively anduponrequestworkscloselywith applicantsto evaluatepotential parkingand/or landscapecoverage reductionsto helpincreasedensity. Whenappropriate, PlannedDevelopmentdocumentsandSpecific Plansarealsopromotedasa meansof increasingdensitywiththe benefitof increasingamenities, such asparkandrecreationfacilities. Inaddition, theviabilityof a DensityBonusapplicationisalso considered as a means to increase the density of potential projects in the City.

Asidentifiedin Program24, NoNet Loss, the Citywill monitor developmentactivitycomparedto remainingcapacityidentified in the SitesInventoryandthe City's remainingRegionalHousingNeeds Allocation (RHNA) throughout the 6th Cycleto ensure there are adequate sites to accommodate the RHNA. In addition while the City has identified an adequate supply of land to fully accommodate the City's6th CycleRHNAthe Citywill provideanadditionalbuffer of sitesby rezoningsitesto increase multifamilyresidentialoptionsin moderate- andhighopportunity/ higherresourceareasthrough implementation of Program 33, Strategically EnhanceAccessto Areas of Opportunity.

2. 5 Length of Time between Project Approval and Applications for Building Permits
State law requires an analysis of the length of time between receiving approval for housing development and submittal of an application for building permit.

Residentialprojectsin HighlandarereviewedbytheCommunityDevelopmentDepartmentandBuilding andSafetyDepartment. Onaverage, the time is between5 to 10daysfor the approvalof smaller residentialprojectsof 3 or lessunits. a#teFOnaverage, thetimeisbetween45to 90daysforthe approvaloffe- ahousingdevelopmententitlementof4or moreunits. Thelengthof timebetween approval from the City for an entitlement and when the applicant applies for a building permit is typicallybetweentwo (2) andten (10) monthsdependingontheapplicantandtheavailabilityof financingasthereisnoprocessingor reviewrequiredof theCitybetweenreceiptofapprovalfora housingdevelopmentandapplicationfor a buildingpermit rather it isthe proiectapplicant's responsibilityto applyfor neededpermitsOnceanapplicanthasreceivedallnecessaryapprovalsand hassubmittedthe applicationfor their buildingpermitswhichcomplywith all applicableregulations, t-he it takes approximately 1 month to
obtaina buildingpermit for residentialprojectsof 3 or lessunits, and
approximately 1 % monthsto obtaina buildingpermitfor residentialprojectsof 4or moreunits.

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Assuch the lengthof time betweenreceivingapprovalfor a housingdevelopmentandsubmittalof an applicationfor buildingpermitshasnot constitutedanimpedimentto development; however, the City hascommittedto severalprograminthe HousingElementthat showslocaleffortsto removepotential nongovernmental constraints for the development of housing for all income levelsand the construction of that housingincludingProgram28 AffordableHousingStreamlining whichwill providean affordablehousingstreamlinedapprovalprocessin accordancewith Staterequirementsfor qualifying developmentproposalsthat provideaffordableunitsunderSB35 (2017) streamlining, andwill ensure clearproceduresanda streamlinedministerialapprovalprocessto assiststaff in respondingto SB35 proposalsand permit streamliningameRdthe Zstaff- pFqeaFes + be GGRsistent with She requirements related to the fB 35 StFearAlwRiRR13FOcesses.The City will also implement Program 29, Objective Design Standards through which the City will amend the major and minor design review criteriapreviouslyoutlined to removepotentialconstraintsto developmentbyensuringobjective designstandardsandcriteria for residentialprojectsrequiringdesignreviewandincreaseoverall certainty in the development process In addition several programs in the HousingElement aim to facilitate the overall construction of the City's share of the regional housing need including Program 22, Lot Consolidation Incentive Program 30 Surplus Lands and Program 33 Strategically EnhanceAccess to Areas of Opportunity.
3 Environmental Constraints
Environmentalconstraintscanlimit or affectthe type of housinganddensityof housingdevelopmentin acommunity. Theseconstraintscanincludenaturalresources, hazards, or lackofsufficient infrastructurecapacity. However, HighlandisanurbanizedcommunitywiththemajorityoftheCity's infrastructurealreadyin place. Environmentalandinfrastructureconstraintsdo not poseasignificant constraint to housing production.

3. 1 Environmental Features

3. 1. 1 Biological Resources
Dueto urbanizationandgrowth, habitatislimited to the undisturbedareasof the northeast. Native habitatswithin the developedpart of the Cityarefew and includeannualgrasslandswith nonnative grasses, disturbedareaswithspareamountsof nativespecies, andlandscapedareas. Thereareplant andwildlife communitieswithin the City, manyassociatedwith the watercoursesthat traversethe City and drainage in the canyons of the foothills and mountains. The City is located north of the Upper Santa Ana RiverWash Habitat Conservation Plan; however, the City itself is not within a Habitat Conservation Planareaorotherplanareaprotectingbiologicalresources. Biologicalresourcesareregulatedand protectedbyFederal (U.S. FishandWildlifeService) andState (CaliforniaDepartmentofFishand Wildlife) regulations, and the County of San Bernardino. Federal and State regulations require environmentalreviewof proposeddiscretionaryprojects. Costs, resultingfromfeeschargedbylocal governmentsandprivateconsultantsneededtocompletetheenvironmentalanalyses, andfromdelays causedbymandatedpublicreviewperiods, alsoaddto thecostof housing. However, thepresenceof suchregulationsis requiredto preservethe environmentalandensureenvironmentalqualityfor Highland residents.

3. 1. 2 Archaeological Resources
There are several sites north of the City and specific areas that have been designated as archaeologically sensitiveareaswith a highprobabilityfor discoveryof archeologicalresourcesif disturbedby

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development. Oneof the NativeAmericantribes closelyassociatedwith the Cityof Highlandisthe San ManuelBandof MissionIndians. To preservearchaeologicalresourcesandthe historyof the San Manuel Band of Mission Indians, the City's approach to preservation is through a site -by -site analysis usingthedevelopmentreviewprocess. SuchanalysisisrequiredbyStatelawthroughCEQAandinvolves archivalresearch, field reconnaissance/survey, andpreparationof a CulturalResourcesReport. If resources are identified within areas of proposed housing developments, the individual project applicant wouldworkwiththeCityandaqualifiedarchaeologistto determinethepropermitigationforthesitein question. Aswith biologicalresources, suchanalysiswouldaddto thecostofhousing; however, it is required to avoid significant impacts to archaeologically sensitive sites.

3. 1. 3 Water Resources
Waterisprovidedto HighlandbytheEVWDthroughgroundwater, surfacewater, andimportedwater.

WaterprovidersinSouthernCaliforniafacethechallengeof growingdemandanduncertaintyof supply.

TheUrbanWater ManagementPlanAct requireswater providersto evaluatesuppliesduring normal year, singledryyear, andmultipledryyearscenarios; existingbaselinewateruse; targetsfor future water use; demand management measures implemented or planned for implementation; water shortagecontingencyplanning; andnotificationwithotherwateragencies. It isestimatedthatthe EVWDwould experience a 7 percent increase in demand from 2020 to 2030. Assuming conservation behaviorscontinueamongthe population, andthe EVWDcontinuesto identify new, cost-effectiveways to supplywater, Highlandshouldbeableto supplythewaterneededfortheCity'santicipatedgrowth.

3. 1. 4 Energy Conservation
Risingenergycosts, dependenceonfossilfuels, andincreasingevidenceoftheadverseimpactsof climatechangehaveprovokedthe needinCaliforniaandnationwideto improveenergymanagement strategies. Although California has always been a leader in energy conservation, recent regulations specificallytarget energyindependenceandgreenhousegasemissions. In2006, the StateLegislature adoptedthe GlobalWarmingSolutionsAct of 2006, whichcreatedthe first comprehensive, State regulatoryprogramto reducegreenhousegasemissionsto 80percentbelow1990levelsby2050.

Promotingenergyconservationhasbecomeaconsistenttheme in California's regulations.

Highlandunderstandsthat energyefficiencycangreatly reducethe impactof residentialdevelopment andprovidecostsavingsfor itsresidents. Onaregulatorylevel, theCityenforcestheStateEnergy Conservation Standards (California Codeof RegulationsTitle 24). Thesestandards incorporated into the City's BuildingCodeprovideagreatdealof flexibility for individualbuildersto achievea minimum energybudget" withvariousperformancestandards. Theserequirementsapplytoallnewresidential and commercial construction and to remodeling and rehabilitation construction only where square footageisadded. Compliancewith Title 24of the CaliforniaAdministrativeCodeonthe useof energy - efficientappliancesand insulationhasreducedenergydemandstemmingfrom newresidential development.

Residential development in Highland is evaluated for energy efficiency during the plan review process.

EveryresidentialprojectmustsubmitcalculationspermodelshowingcompliancewithTitle24. The applicantmustdescribethe type of heatingsystemand maximumcapacity, andprovidethe make, size, and model number for all air conditioning units, furnaces, and water heating equipment. More energy efficiency could be encouraged through an incentives program.

TheCityof Highlandeducatesthedevelopmentcommunityandresidentsthroughinformativematerials madeavailablein publicbuildings, theCity'swebsite, andtheGeneralPlanOpenSpaceand

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ConservationElement. Partof this effort ispromotingenergyefficiencyin existingstructuresthrough rehabilitation and appliance replacement, and in new development through incentive programs providedbyutilitycompanies. TheCityalsohaspoliciesthatencourageenergyconservationand housingobjectives. Forexample, infilldevelopmentdiscussedintheHousingElementandLandUse Elementencourageshousingdevelopmentopportunitieswithout creatingsprawl. The2014- 2021 HousingElementupdatedtheLandUseandDevelopmentCodeto includetheResidentialHDSOverlay, permittingsuchmultifamilyunitsby -right. Additionally, multifamilyhousingtypeswithintheR-4zoneis permittedby -right. TheHDSandR-4zoningarelocatedwithinurbanizedportionsoftheCity. These developmenttypesareconsistentwith Stategoalsto encouragecompact, walkable, andenergy - efficient neighborhoods.

3. 2 Environmental Hazards
Environmentalhazardsaffectinghousingdevelopmentandresidentsafetyincludeextremeheat, flooding, geologichazards (landslides/slopeinstability, earthquakes, andliquefaction), andwildfires.

Thesehazardsprovidethegreatestthreatto thebuiltenvironment. Developmentshouldbecarefully controlledinpotentiallyhazardousareas. TheCityof HighlandSafetyElement, whichprovidespolicy guidanceaboutenvironmentalconstraints, wasupdatedin2021andcoversallof theareaswithinthe land inventory.

3. 2. 1 Flooding
FloodriskisdispersedacrossHighlandbut ismostcentralizedin the southernportion of EastHighland justsouthof GreenspotRoadandalongCityCreek. Thisareahasa1percentchanceof flooding annually, whichisalsoknownasa100-yearfloodzone. Muchoftheareasouthof GreenspotRoadand alongCityCreekiszonedasOpenSpaceandAgricultural/Equestrian. Thisaidsinallowingfornatural drainageduringextremerainevents. Highlandhasadoptedspecialstandards, suchasminimumbuilding elevations, floodproofing, andanchoring, for developmentinflood -proneareas. Anyhousingsites identifiedintheHousingElementthatmaybelocatedina100- or500-yearfloodplain, orotherflood hazardzone, will bedevelopedin accordancewith strict regulationsto properlymitigateflooding hazardsin accordancewith the floodplainmanagementstandardsof the HighlandMunicipalCode Chapter 16. 76).

3. 2. 2 Landslides/ Slope Instability
Steepslopescanexperiencelandslides, debrisflows, mudslides, anderosion. Theseeffectsimpact where development can occur throughout the City and can result in damagesto existing development.

Areas at high risk of landslides include the northern and eastern areasdue to their proximity to steep slopesandthe rockstrengthin theseareas. TheCityhasregulationsin placeto reducethe potentialfor slopefailure, erosion, andmudslideswhen newdevelopmentis proposedin areassubjectto geological risks.

3. 2. 3 Earthquake
Likethe entire SouthernCaliforniaregion, the Cityof Highlandiswithin anareaof highseismicactivity.

It can be expected, therefore, that a significant seismic event will occur in the City. The timing and magnitudeof suchaneventcannotbe predicted, althoughplanningeffortsfor emergencyresponse mustbepredicatedonthecertaintyof suchanevent. NorthandsouthbranchesoftheSanAndreas Fault, a known active fault, run through Highland. The SanJacinto Fault is approximately 4.5 miles southwestoftheCity. TheCity'sSafetyElementrequiresresidentialdevelopmentto besetbacka

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minimum of 50 feet from active and potentially active fault lines. The Safety Element includes other policiesto increasemitigationmeasuresandfurtherstudypossiblegeologic- andseismic -related hazards.

3. 2. 4 Liquefaction
Liquefactionmaydamagestructureson saturated, granularsoils, suchassilt or sand, duringan earthquake. ThesegeologicconditionsaretypicalinvalleyregionswithinHighland. Areasat riskof liquefaction due to soil composition and heightened exposure to runoff cover nearly all of southeastern Highland, as well aswestern Highland. Detailed soils engineering investigations would be necessaryin thoseareaswherefuture developmentisproposedwithin liquefactionareasin orderto further evaluate the liquefactionpotential, andto further definethe potentiallyaffectedareasof the City. However, becauseof the site -specificnatureof geologichazards, existinggeologicconditionsare not expectedto adverselyimpactdevelopmentwithinHighland. Inadditionto existingbuildingcodesandregulations, site -specificgeologicreportswouldrecommendanynecessarymitigationmeasures, if required, to reduce potential hazardsassociated with liquefaction.

3. 2. 5 Wildfire
TheCityof Highland's buildingcodesrequirenew housingto includefire sprinklersystemsto protect residentsandproperty. Wildlandfiresareapresentthreat, astherearelargeexpansesof undeveloped hillsidesin andadjacentto Highland. Most of the Cityof Highlandis built in fire -riskareasdueto the proximitytoforestlandtothenorthandeastofCitylimits. ThemostnortheasternportionsofHighland arelocatedinveryhighfireriskareas, whilemuchofthecentralandsouthernportionsof Highlandare high fire risk areas. Precautions, such as fuel modification zones, vegetation maintenance, and most importantlyperimeterfireroads, helpprotectHighland'snaturalanddevelopedareasfromwildfire. The CaliforniaDepartmentof Forestryand FireProtectionprovidesfire preventionandsuppressionservices to the Cityandunincorporatedareaseastof the City. Additionalwildlandfire protectionservicesare providedbythe U.S. ForestServiceon NationalForestlandsadjacentto the City.

3. 3 Adequate Infrastructure Capacity
TheCityof Highlandcontainsbothdevelopedandlargelyundevelopedresidentiallyzonedareas. In developedareas, the existinginfrastructuresystemissufficientto supportHighland's population, but water and sewer are limited in undeveloped areaswithin the City. However, infrastructure in currently unservedareaswill beplannedandconstructedasnecessaryto servenewdevelopment. These improvementsaretypicallydedicatedto the City, whichisthen responsiblefor maintenanceand/or improvement.

Futurehousinggrowthisfocusedincommercialareasaroundexistingbusstopsthatareservedby existingsewerandwaterlines. Alldevelopmentplansin HighlandmustbecoordinatedwiththeEVWD to meetwastewaterdisposalandtreatment requirementsestablishedbythe CaliforniaDepartmentof Health Services. Development impact fees will allow the water and wastewater districts to provide necessary connections and services.

3. 3. 1 Dry Utilities
The California Public Utilities Commission is responsible for regulating the electric, natural gas and telecommunication industries excepting cable television. Southern California Edison provides electricity to theCity. SouthernCaliforniaEdisonhasalocalofficeintheCityof Redlandsandoperatesa substationin the City. Electricalfacilitiesare expectedto keeppacewith anticipateddemandin the City.

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TheSouthernCaliforniaGasCompanyprovidesnaturalgasto the City. TheSouthernCaliforniaGas CompanyhaslocalofficesintheCityofSanBernardinoandtheCityof Redlands. Theavailabilityof naturalgasis basedoncurrentconditionsof gassupplyandregulatorypolicies. TheSouthernCalifornia GasCompanyhasnocurrentplansforsignificantimprovementorexpansionplansfortheCityand anticipates that an ample supply of natural gas can be provided to the City. Important telecommunicationsystemsareavailableto the City's residents, includingcable, high-speedInternet, andwirelesscommunication. Referto the City's PublicServicesandFacilitiesElementof the General Plan for additional information.

Thereissufficientexistingor planneddryutilitiessupplycapacity, includingelectricity, naturalgas, cable, andtelephone, to accommodatethe City's regionalhousingneedandsitesidentifiedfor the planningperiod (seeAppendixEfor SitesInventorydetails).

3. 3. 2 Sewer System
TheEVWDprovidessewerservicesto theCityandhasajoint powersagreementwiththeCityofSan Bernardinoto acceptall sewagegeneratedbythe City. Althoughthe sewersystemisadequatefor existingdevelopmentin Highland, continuedgrowthhasthepotentialto impactthecapabilitiesofthe sewersystem. Developersmustcoordinatewith the EVWDto meetsewerrequirements. TheEVWDhas adopted the 2019 SewerSystem Management Plan. As required by Order No. 2006- 0003, Statewide GeneralWasteDischargeRequirements, the SewerSystemManagementPlanwill undergoreviewand revisions through internal audits every 2 years. The Statewide General Waste Discharge Requirements alsorequirean agencyto haveaSystemEvaluationandCapacityAssurancePlan. Thiscomponent involvespreparingandimplementingaCapitalImprovementProgramthatwillprovidethehydraulic capacityof keysewersystemsfor dry -weatherpeak -flowconditions, aswellasappropriatedesignstorm or wet -weatherevents. The2019SewerMasterPlanidentifiesprojectsin prioritizedorderfor pipelines showingcapacitydeficiencyinthefutureplanninghorizon. Aftercompletingtheprojectsidentifiedin the 2019 Sewer Master Plan, the City's sewer system will operate with adequate capacity.

ThesewagefromtheCityflowsinageneraldirectionfromnortheastto southwesttowardtheSan Bernardino Water Reclamation Plant located at 299 Blood Bank Roadin the City of San Bernardino. This plantisoperatedbytheSanBernardinoCityMunicipalWaterDepartment, WaterReclamationDivision.

Theplantprocessesanaveragesewageflowofapproximately26to 27milliongallonsperday (mgd) fromtheCityof SanBernardino, theCity, andotherareas. Theplanthasatotalsewagecapacityof 33 mgd. Expansionor constructionof a newwastewatertreatment facility to meetthe demandsof the 2021- 2029 Housing Element update is not required.

3. 3. 3 Water System
TheCity'swatersupplysourcesarelocalgroundwater, surfacerunofffromnaturalwatershedand drainageareas, andimportedwater. TheEVWDmanagesthe water supplythrough a systemof pipelines, wells, reservoirs, pumpingstations, andatreatmentplant. Thissystemincludesapproximately 19 active wells, 2 inactive wells, 18 reservoirs, and 26 booster stations all located on 39 different plant sites.

The water distribution and transmission network varies considerably throughout the City. Transmission lines (16 to 24 inches in diameter) transport large quantities of water from one area to another. Major transmission lines are located in parts of Victoria Avenue, Sterling Avenue, Del RosaDrive, Tippecanoe Avenue, ChurchStreet, WeaverStreet, 9th Street, BaseLine, PacificStreet, HighlandAvenue, and5th Street. Distribution lines (3/4 inches to 20 inches in diameter) deliver water to individual dwelling units.

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Major streets havethe larger distribution lines whereas secondary or local streets have progressively smaller lines.

The 2019 Water System Master Plan provides guidance for the expansion of the current water system basedonplanneddevelopment. Potentialinfillgrowthresultingfromnewzoningandlanduse regulations would be accounted for in future Water System Master Plan updates. Additionally, the 2019 Water SystemMasterPlanevaluatesthe existingdistributionsystemandits facilitiesto sizefuture improvements. A water supply analysis was performed to determine whether available water sources are sufficient to meet water demand for the EVWDunder normal and emergency operations. It was determined that EVWDwill have a total deficiency of approximately 18.0 mgd of storage capacity and

13.44 mgdfor supplyunderthe build -out demand. Improvementprojectsidentifiedwouldaddress system deficiencies and increased water demands.

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4 Analysis of Local Efforts to Remove Constraints and Facilitate Affordable Housing
Duringthe 5th CycleHousingElementplanningperiod, the Citymadestridesto reduceconstraintsto developmentthat arewithin the City's purviewsincethe HousingElementwaslastupdatedin 2013.

Reductions to constraints during the 5th Cycle planning period were as follows:

Updates to the Land Use and Development Code to comply with State law regarding transitional and supportive housing.

The Greenspot Village & Marketplace Specific Plan adoption in 2013, providing a generousamountof landavailablefor residentialdevelopment, includingup to 800 residential units, and a mix of residential, commercial, entertainment, governmental, and professional office uses.

Amended the Land Useand Development Codeto make permitting ADUs in single-family zones a ministerial action that does not require public notice, public hearing, or discretionary approval.

Duringthe6thCyclereviewofgovernmentalandnon -governmentalconstraints, thefollowingareaswere identified as imposingpotential constraintsto housingdevelopment, including housingaffordableto lower -income households and for special needs groups including persons with disabilities.

Updates to State Law
Most recently, the Cityamendedthe AccessoryDwellingUnitsandJuniorAccessoryDwellingUnits Ordinance (Section16.44.180of the City's LandUseandDevelopmentCode) in 2021to complywith severalupdatesconsistentwith Statelaw, GovernmentCodeSection65852.2. Aspart of Program12, AccessoryDwellingUnits, of theHousingElement, theCitywillsubmittheupdatedordinanceto HCD for their reviewandwill incorporateamendments, asrequiredby HCD. Further, the Citywill develop andadoptaprogramthatincentivizesandpromotesthecreationofADUsthatcanbeofferedatan affordablerentfor extremelylow, very low, low, or moderate -incomehouseholdsor householdswith special needs (AB 671, 2019). Other areas in the Land Useand Development Code which may pose a constraintto developmentasthey are not upto datewith currentStatelawinclude, Emergencyshelter parkingrequirements, by -rightapprovalsfor Low -barrierNavigationCenters, anddensitybonus requirementsfor affordablehousing. However, throughProgram19, EmergencyShelters, Transitional Housing, Permanent Supportive Housing, and Single Room Occupancy, the City will permit transitionalandsupportivehousingconsistentwith Statelawsandamendthe City's EmergencyShelters Ordinance (Section16.44.270, EmergencyShelters) to complywith parkingrequirementssetforth byAB 139, Quirk -Silva. ThroughProgram27, LowBarrierNavigationCenters, the Citywill updatethe Land UseandDevelopmentCodeto provide, by -right, approvalsexemptperthe CaliforniaEnvironmental QualityAct (CEQA) to Low -BarrierNavigationCentersmeetingspecificstandardsinareaszonedfor mixedusesandnonresidentialzonespermittingmultifamilyuses, consistentwith AB101's requirements for Low -BarrierNavigationCenters. Asmentioned, the City's DensityBonusOrdinance, approvedin 2013, is no longer in compliance with the State's latest Density Bonus Law. Program 6, Density Bonus, willupdatetheCity'sDensityBonusOrdinanceto complywiththecurrentStateDensityBonusLaw, includingtheprovisionfor anincreasedbonusfor 100percentaffordabledevelopmentsandstudent affordable housing.

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Residential Care Facilities - Licensed and Unlicensed Group Homes facilities W TheCity'sLandUseandDevelopmentCodeincludesadefinitionandpermitrequirements for ResidentialCareFacilitiesservingsevenor morepersons, referredto as "BoardandCarefacilities" it doesnot differentiate or includeprovisionsfor residentialcarefacilitiesfor 6 personsor fewer. Thisis a constraint to the development of residential care facilities for 6 or fewer persons as local agenciesmust permit these facilities as follows: ( 1) the sameas any other residentialuseand shallbe considereda residentialuseof property bya singlefamily; (2) allowedin all residentialzones; and (3) besubjectto the samedevelopmentstandards, fees, taxes, andpermit proceduresasthoseimposedon the sametype of housinginthesamezone. TheHealthandSafetyCoderequiresjurisdictionsto allowlicensedgrouphomes servingsixorfewerpersonsinsingle-familyresidentialzonesandto treatthemthesameassingle-family homes The City's Zoning Code defines all categoriesof licensedgroup homes as "ResidentialCare Facilities." To complywith the Healthand SafetyCodeandstate housinglawsregardinglicensedgroup homes the City will update the ZoningCode's definitions and permitting processesto differentiate between ResidentialCareFacilities (licensedgroup homes) serving sixor fewer residents and those serving seven or more residents as part of Program 18 Group Homes and Residential CareFacilities.

AccordingtothepermittedusestableintheLandUseandDevelopmentCode (seeTable2), aresidential carefacilityfor sevenpersonsor more (BoardandCareFacilities) areconditionallypermittedin all multifamilyzones (R-2, R-2C, R-3, R-4, andHDS) andcommercialzones (CG, NC, PC, VC). Requirementsfor discretionarypermitsmaybe necessaryfor certainuseswhichcouldhavean effecton the existing community; however, they mayalsoposeconstraintsto development. Assuch, Program18, Group Homesand Residential Care Facilities, of the HousingElement includes an objective to amend the Zoning Codeto permitResidentialCareFacilities (licensedgrouphomes) servingsixorfewerpersonsinallsingle- familyzonessubjectonlyto the generallyapplicablelawsthat applyto all single-familyresidencesin accordancewith the Welfare and Institutions Codeand Health and Safety Code and permit those serving seven or more in at least one zone without discretion. eFMit Fesidential eaFe f" ilitie` ` a„V_ peFSORSbyFightiRallFesidentialzenesin aGeeFdaneeWiththeWelfareandIRStitLltiORSCedeSectiOR5116 andpermittheseseFvingsevener FneFein at leastonezenewithout diseFetieF-.

Group Homes that Do Not Provide Licensable Services —
Further, to remove constraints to the development of housing for persons with disabilities and to comply with state housing laws regarding unlicensed group homes the City will update the Zoning Code as part of Program18 to permit unlicensedgroup homesin single-family zones subjectto the samelawsthat applyto all single-family residencesto complywith state housinglaws.

Lot Consolidation
TheCityhasidentifiednumerousvacantand underutilizedparcelsthat havethe potentialto accommodatemultifamilyprojects, asdetailedinAppendixE. To mitigate potentialconstraintsthat may exist related to lot consolidation for development projects relying on multiple lots to create one site, the Citywillprovideadevelopmentpermitexpediteincentivethroughpriorityprocessingforprojectsutilizing fer-lot consolidationfor multifamilydevelopmentonsitesidentified in the HousingElementashavingthe potentialto accommodatelower- or moderate -incomeunits, includingthosesiteswithpotentialfor

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extremelylow-incomedevelopmentanddevelopmentto meetthe needsof thosewith specialneeds, through implementation of Program 22- 3, Lot Consolidation Invective, of the Housing Element.

Single Room Occupancies ( SROs)
Anotherpotentialgovernmentalconstrainis relatedto the developmentof SROunitswhichimpact extremelylow-incomehouseholds. TheLandUseandDevelopmentCodedoesnotcurrentlypermitSRO units. As such, through Program 19 of the Housing Element, the City is committing to amend the Zoning Codeto identifyaprocessbywhichSROunitscanbepermittedto furtherincreasehousingopportunities for extremely low- income households.

Market Constraints
Non -governmentalconstraintsaregenerallymarketdrivenandoutsidethecontrolof localgovernment; nonetheless, the Citycantakeactionto helpalleviatesomeof theseconstraintsinthe form of regulatory relief and increased certainty in the development process. For example, Programs 21, Collaborative Partnerships, and Program 245, No Net Loss, are related to market demandand promoting developerinterestto build affordable housing. ThroughProgram20-, Mobile
HomePreservation, theCitywillrequireareportdetailingrelocationanddisplacementforanyproposed conversionor closureof a mobile home park. This ensuresthat residentsof mobile homes, which are typicallylower -incomehouseholds, arenot displacedfrom the Cityandthat housingstockfor lower - income householdsremains in the City. Through Program 24-5, No Net Loss, the City will monitor developmentactivitycomparedto remainingcapacityidentifiedinthe SitesInventoryandthe City'sRHNA to ensure there is adequate capacity for lower -income households. Similarly, through Program 1, HomeownerRehabilitation Program, the Citywill partner with the Countyto refer residentsto a loan availableto eligiblehouseholdsearningbelow80percentof the AreaMedianIncomeinthe InlandValley which provides up to $ 25,000 per householdsto be usedfor financinghome improvements, including health and safety repairsand energyefficiencyupgrades. This helpsensurethe longevityof the City's housing stock.

Otherprogramsin the HousingElementaimedto incentivedevelopmentandaddresspotentialnon- governmental constraints include:

Program4, InclusionaryHousing, which requiresthat all new housingdevelopmentsprovide affordable units on site or off site, or to pay an in -lieu fee that goes into the City' s affordable housing preservation and construction fund.

Program8, By -RightDevelopmentOnPreviouslyIdentified HousingSites, will permit sitesinthe SitesInventory, that werepreviouslyidentifiedin accordancewiththespecificationsof Housing Element law, to be developedby right where 20 percent of the total housingunits in the development will be affordable to lower -income households consistent with State Assembly Bill AB) 1397 ( See Section 3.3, Sites Identified in Previous Housing Elements, of Appendix E, for additional details).

Program 132-8, Homeowner Assistance Programs , the City will support creative models of affordable property ownership and affordable housing preservation through methods such as community land trusts.

Program 21, Collaborative Partnerships, the City will contact local affordable housing service providersto discusspartneringandwillcontinueto seekfinancialassistancefromotheragencies,

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and support the development of extremely low- very low- and low- income units through an approximately $4 5 milliongrantfrom the Cityof HighlandHousingAuthority (HighlandHousing Authority).

Program 29, Objective DesignStandards the City will amend the maior and minor design review criteria outlined above to remove potential constraints to development by ensuring objective design standards and criteria for residential proiects requiring design review.

Program30, SurplusLands, the Citywill identify andprioritizelocalsurpluslandsavailablefor housingdevelopmentaffordableto lower -incomehouseholds, includingextremelylow-income households and households with special needs and facilitate the development of new affordable rental units on a surplus site through a long-term ground leasewith a below fair market value rent.

Program 31, IncreasedTransparency, the City will maintain information on the City'swebsite that is applicable for housing development project proposal requirements, including a current schedule of fees, exactions, applicable affordability requirements, all zoning ordinances, development standards, and annual fee reports or other relevant financial reports to ensure the development process is clear.

Program33, StrategicallyEnhanceAccessto Areasof Opportunity, while the Cityhasidentified anadequatesupplyof landto fully accommodatethe City's 6thCycleRHNA, the Citywill identify and rezone areas appropriate for medium and high residential densities, specifically in moderate- or higherresourceareas Allowingfor the developmentof multifamily residential usesacrossthe Citycanincreaseopportunitiesfor existingandfuture residentsto livewhere they choose Therefore through implementation of Program 33, the City can increase geographicequityandopportunitiesfor residentsandprovideanadditionalbufferof sitesby rezoningsitesto increasemultifamilyresidentialoptionsin moderate- and highopportunity/ higher resource areas.

Further details can be found in the Housing Element, Program Implementation subsection.

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5 Quantified Objectives
Basedon the City'sneeds, resources, constraints, and programsoutlinedinthe HousingElement, Table 8, Summaryof QuantifiedObjectivesfor 6t' Cycle (2021-2029) summarizesthe quantifiableobjectives forthe 6thCycle. Thequantifiedobjectivesestimatethenumberof unitslikelyto beconstructed, rehabilitated, or conserved/preservedbyincomelevelduringtheplanningperiod. Thequantified objectives do not represent a ceiling on development, but rather set a target goal for the City to achieve.

Table 8. Summaryof Quantified Objectives for 6th Cycle (2021-2029) Income Category 6th Cycle RHNA New Construction Rehabilitation Conservation/
Preservation
Extremely Low 309 309 0 0
Very Low 310 310 0 0
Low 409 409 0 0
Moderate 471 471 0 0
Above Moderate 1, 014 1, 014 0 0
TOTALS 2, 513 2, 513 0

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Appendix D: Affirmatively Furthering Fair Housing
Analysis
Contents

1. Introduction.......................................................................................................................................... 1

2. Analysis of Impediments to Fair Housing Choice.................................................................................. 2

3. Housing Element Outreach................................................................................................................... 2

4. Assessment of Fair Housing.................................................................................................................. 3

4. 1. Fair Housing Enforcement and Outreach Capacity....................................................................... 3

4. 2. Segregation and Integration......................................................................................................... 7

4. 2. 1. Race and Ethnicity................................................................................................................. 7

4. 2. 2. National- Origin.................................................................................................................... 13

4. 2. 3. Language............................................................................................................................. 13

4. 2. 4. Household Income.............................................................................................................. 13

4. 2. 5. Familial Status..................................................................................................................... 21

4. 2. 6. Persons with Disabilities..................................................................................................... 30

4. 2. 7. Neighborhood Segregation................................................................................................. 30

4. 3. Raciallyand EthnicallyConcentrated Areasof Poverty..............................................................35

4. 3. 1. Racial Concentrations in Areas of Affluence....................................................................... 38

4. 4. Patterns Over Time..................................................................................................................... 42

4. 4. 1. Mortgage Loan Access........................................................................................................ 43

4. 4. 2. Demographic Trends........................................................................................................... 44

4. 5. Disparities in Access to Opportunity........................................................................................... 45

4. 5. 1. Access to Education............................................................................................................ 50

4. 5. 2. Access to Economic Opportunity........................................................................................ 55

4. 5. 3. Access to Transportation.................................................................................................... 60

4. 5. 4. Access to a Healthy Environment....................................................................................... 63

4. 5. 5. Access to Opportunity for Persons with Disabilities........................................................... 72

4. 6. Disproportionate HousingNeedsand DisplacementRisk..........................................................73

4. 6. 1. Housing Affordability.......................................................................................................... 74

4. 6. 2. Housing Conditions............................................................................................................. 81

4. 6. 3. Overcrowding...................................................................................................................... 81

4. 6. 4. Displacement...................................................................................................................... 86

4. 7. Other Relevant Components...................................................................................................... 93

4. 7. 1. Demographic Trends........................................................................................................... 93

4. 7. 2. Public Assistance................................................................................................................. 93

5. Sites Inventory Analysis Consistency.................................................................................................. 96

5. 1. Patterns and Trends.................................................................................................................... 96

5. 1. 1. Segregation and Integration............................................................................................. 102

5. 1. 2. R/ ECAPs and RCAAs.......................................................................................................... 103

5. 1. 3. Disparities in Access to Opportunity................................................................................. 103

5. 1. 4. Disproportionate HousingNeeds, IncludingDisplacementRisk.......................................104 Page I i City of Highland Affirmatively Furthering Fair Housing Analysis -107-

6. Summary of Fair Housing Issues....................................................................................................... 104

7. ContributingFactorsto FairHousingIssuesandStrategiesfor AffirmativelyFurtheringFairHousing 105

7. 1. Prioritization of Contributing Factors and Actions Designed to Meaningfully Address ContributingFactors............................................................................................................................. 106 Figures
Figure 1A. Race and Ethnic Distribution....................................................................................................... 9 Figure 113. Race and Ethnic Distribution in the Region............................................................................... 10 Figure2A. Diversity Index........................................................................................................................... 11 Figure 2B. Regional Diversity Index............................................................................................................. 12 Figure3A. Median Income.......................................................................................................................... 15 Figure 3B. Median Income in the Region.................................................................................................... 16 Figure4A. Poverty Status............................................................................................................................ 17 Figure 4B. Poverty Status in the Region...................................................................................................... 18 Figure 5A. Low to Moderate Income.......................................................................................................... 19 Figure 5B. Low to Moderate Income in the Region.................................................................................... 20 Figure 6A. Children in Single - Mother Headed Households........................................................................ 22 Figure 6B. Children in Single - Mother Headed Households in the Region .................................................. 23 Figure 7A. Children in Married Couple Households.................................................................................... 24 Figure 7B. Children in Married Couple Households in the Region............................................................. 25 Figure8A. Adults Living Alone.................................................................................................................... 26 Figure 8B. Adults Living Alone in the Region.............................................................................................. 27 Figure 9A. Adults Living with a Spouse....................................................................................................... 28 Figure 9B. Adults Living with a Spouse in the Region................................................................................. 29 Figure 10A. Population with a Disability..................................................................................................... 31 Figure 10B. Population with a Disability in the Region............................................................................... 32 Figure 11A. Neighborhood Segregation...................................................................................................... 33 Figure 11B. Neighborhood Segregation in the Region............................................................................... 34 Figure 12A. R/ ECAP ( 2009- 2013) and Segregation and Poverty................................................................. 36 Figure 12B. R/ ECAP (2009- 2013) and Segregation and Poverty in the Region........................................... 37 Figure12C. RCAA........................................................................................................................................ 39 Figure12D. RCAA Flood Areas.................................................................................................................... 40 Figure12E. RCAAs in the Region................................................................................................................. 41 Figure13A. Opportunity Map..................................................................................................................... 48 Figure13B. Regional Opportunity Map...................................................................................................... 49 Figure 14A. Opportunity for Education....................................................................................................... 53 Figure 14B. Opportunity for Education in the Region................................................................................ 54 Figure15A. Economic Outcomes................................................................................................................ 56 Figure 15B. Economic Outcomes in the Region.......................................................................................... 57 Figure16A. Jobs Proximity Index................................................................................................................ 58 Figure 16B. Regional Job Proximity Index................................................................................................... 59 Figure 17. Automobile Ownership Rates.................................................................................................... 61 Figure18. Access to Transit........................................................................................................................ 62 Page I ii City of HighlandAffirmatively Furthering FairHousingAnalysis -108-
Figure 19A. Opportunity for a Healthy Environment.................................................................................. 64 Figure 19B. Opportunity for a Healthy Environment in the Region............................................................ 65 Figure20A. CalEnviroScreen 3. 0................................................................................................................. 66 Figure 20B. Regional CalEnviroScreen 3. 0.................................................................................................. 67 Figure21A. Healthy Places Index................................................................................................................ 69 Figure 21B. Regional Healthy Places Index................................................................................................. 70 Figure22. Parks........................................................................................................................................... 71 Figure 23A. Percent of Renter -Occupied Housing Units............................................................................. 75 Figure 23B. Percent of Renter - Occupied Housing Units in the Region....................................................... 76 Figure24A. Renter Cost Burden................................................................................................................. 77 Figure 24B. Renter Cost Burden in the Region........................................................................................... 78 Figure 25A. Homeowner Cost Burden........................................................................................................ 79 Figure 25B. Homeowner Cost Burden in the Region.................................................................................. 80 Figure 26A. Any Four Severe Housing Problems......................................................................................... 82 Figure 26B. Any Four Severe Housing Problems in the Region.................................................................. 83 Figure27A. Overcrowding.......................................................................................................................... 84 Figure 27B. Overcrowding in the Region.................................................................................................... 85 Figure 28A. Communities Sensitive to Displacement................................................................................. 87 Figure 28B. Communities Sensitive to Displacement in the Region........................................................... 88 Figure29. Fire Hazards................................................................................................................................ 90 Figure30. Flood Hazards............................................................................................................................. 91 Figure31. Seismic Hazards.......................................................................................................................... 92 Figure 32A. Housing Choice Vouchers........................................................................................................ 94 Figure 32B. Housing Choice Vouchers in the Region.................................................................................. 95 Figure 33. Sites Inventory Map................................................................................................................. 101 Page I iii Cityof HighlandAffirmatively Furthering FairHousingAnalysis -109-

1. Introduction
Fairhousingoccurswhen individualsof similarincomelevelshavethe samerangeof housingchoice availableto theminthe samehousingmarketregardlessoftheir characteristicsasprotectedunderlocal, State, and Federallaws. It is important to the City of Highland (City) that its citizens have fair housing choice, free from discrimination on the basis of race/ ethnicity, religion, sex, marital status, ancestry, national origin, color, familial status, or disability, and other characteristics protected by the California FairEmploymentand HousingAct, CaliforniaGovernmentCodeSection65008, and other Stateand Federalfair housingand planninglaws. In 2018, AssemblyBill 686, AffirmativelyFurtherFairHousing, amended Sections 65583 and 65582. 2 of the California Government Code to require a public agency to administerits programsandactivitiesrelatingto housingandcommunitydevelopmentin a mannerto affirmatively further fair housing.

Fromfreewayexpansionto discriminatoryhousingloanpractices, historicallyunderservedcommunities across the nation have experienced decades of housing disinvestment and infrastructure underinvestment. Manyraciallyandethnicallysegregatedcommunitieshavebeenleftwithhigherrates ofairpollution, poverty, unemployment, educationalattainment, andhealthrisks. StateandFederallaws, suchastheFairHousingAct, haveestablishedpathwaysforlocaljurisdictionsto createmorediverseand equitablecommunities, but reversingdecadesof discriminatorypoliciesat all levelsof the publicand privatesectorsiscomplex, andmanychallengesto equitabledevelopmentremain. TheHousingElement seeksto affirmativelyfurtherfair housingbyidentifyingsegregatedlivingpatternsandbarriersto fair housing, designatingsitesfor affordablehousinginareasofopportunity, andimplementingprogramsthat aimto replacesegregatedlivingpatternsandtransformraciallyand ethnicallyconcentratedareasof poverty. Sitinglower -incomehousingin high -resourceareasisonlypartofthesolutionto improvefair housing. Citiesmustalsoplanfortheneedsoflower -incomeindividualsandhouseholdsthroughmethods suchasaccessibilityofjobs, transportation, educationalopportunities, andhealthservices.

This section serves as an assessment of fair housing practices in the City pursuant to California Government Code Section 65583( c)( 9). HousingElementsare required to include the following:

A summaryof fair housingissuesin the jurisdictionandanassessmentof the jurisdiction's fair housingenforcement and outreach capacity
An analysisof available Federal, State, and local data and knowledge to identify integration and segregationpatternsandtrends, raciallyor ethnicallyconcentratedareasof poverty, disparities in accessto opportunity, and disproportionate housing needs within the jurisdiction, including displacement risk
An assessment of the factors that contribute to the fair housing issues identified in the analysis An identification of the jurisdiction' sfair housingpriorities andgoals, giving highestpriority to the greatest contributing factors that limit or deny fair housing choice or accessto opportunity, or negatively impact fair housing or civil rights compliance Measurablestrategies and actions to implement the fair housing priorities and goalsin the form of programs to affirmatively further fair housing

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2. Analysis of Impediments to Fair Housing Choice
TheCityintendsto affirmativelyfurther fair housingchoiceandpromoteequalhousingopportunityin accordancewith requirements in State FairHousingand HousingElement law and Federallaw. To achieve this, the Cityidentifiesimpedimentsto fair housingchoiceand worksto removetheseimpediments throughthisAffirmativelyFurtheringFairHousingAnalysis. Inaddition, in March2015, theCountyof San Bernardino (County) adoptedthe Countyof SanBernardinoAnalysisof Impedimentsto FairHousing Choice.

TheAnalysisof Impediments presentsa demographicprofile of the region, assessesthe extent of housing needsamongspecificincomegroups, andevaluatesthe availabilityof a rangeof housingchoicesfor residents. The Analysisof Impediments alsoanalyzesthe conditions in the private market andthe public sectorthat could limit the rangeof housingchoicesor impede a person's accessto housing.

3. Housing Element Outreach
While outreach and community engagement have always been important, in recent years significant strides have been made in technology and level of effort regarding engagement. Pastengagementmay not always have had multiple forms of media, meaning that in -person public meetings were the primary form of engagement, with surveys and stakeholder interviews and other types of engagement taking a backseat. In -personpublicmeetingsarenotalwaysthe mostaccessiblefor multiplereasons. If ameeting isat onlyonespecifictime, or if it isonlyofferedin English, it cancreateparticipationbarriersfor those whomaybeunableto attendatthespecifiedtimeorlocation, orpeoplewithoutproficiencyinEnglish.

Engagementrelatedto the HousingElementhasattemptedto becomprehensivewhilein thecontextof the COVID-19 pandemic. An online surveywasusedto engageresidentson local housingneedsand concerns. Stakeholder interviews were conducted via telephone, where public meeting participants were invited to share their thoughts in a one-on-one setting. Results of the interviews provided a better understandingof housingneeds, priorities, opportunities, andconstraints. Allvirtualmeetingswereheld in EnglishandSpanishto fosterparticipationacrossdemographics, as34.7 percentof the populationis Spanish-speaking. Virtual meetingswereopento the publicandwere recordedandmadeavailablefor publicviewingafterthe eventaswell. Becausethevirtualmeetingswereconductedto allowparticipants to practicesocialdistancing, participantshadthe optionofjoiningthroughtheir computersor tablets, or usingacall -in numberif theydidnothaveaccessto theinternet. Virtualmeetingswerealsostreamed ontoFacebook, whichallowedfor post -meetingcommentsto besubmitted. Inaddition, theoutreachwas heldin the evenings, outsideof workinghours. An extensiveoutreachprocesscontributesto a set of meaningfulgoals, policies, andprogramsthatwillreflecttheCity'shousingneedsandtheprioritiesand needsof all of those in the City, includingthose with specialneedsand lower -income populations.

Pleaserefer to AppendixF, CommunityEngagementSummaryand Results, for a full summaryof outreach material and outreach conducted as part of the Housing Element update.

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4. Assessment of Fair Housing

4. 1. Fair HousingEnforcement and Outreach Capacity
Thissectiondiscussesthe fair housingservicesavailableto residentsin the Cityandthe corresponding organizationsthat providefair housingservicesavailableto bothprovidersandconsumersof housing, as wellasthe natureandextentof fairhousingcomplaintsreceivedbythefair housingprovider. Ingeneral, fairhousingservicesincludeinvestigatingandresolvinghousingdiscriminationcomplaints; discrimination auditingandtesting; andeducationandoutreach, suchasdisseminatingfairhousinginformationthrough written materials, workshops, and seminars.

TheCitycoordinateswiththeInlandFairHousingandMediationBoard (IFHMB's) to providefairhousing servicesfor itsresidents. ServicesprovidedbyIFHMBincludeprovidinginformationasit relatesto fair housing, investigation, education, conciliation, and/orreferralof housingdiscriminationcomplaintsfree of chargeto individuals. It also involvesfair housingworkshops that are offered year-round to educate housingproviders, tenants, homeowners, andfinancialandlendinginstitutionsonthekeyaspectsoffair housing laws.

Accordingto theCaliforniaDepartmentof EmploymentandFairHousing, betweenthecalendaryearsof 2013and 2021, there were a total of 3 housingcasesin the City. Oneof thesewas filed basedon discriminationto nationalorigin. Of the 3 cases, 2 were documentedasfailureto respondand1 was documented asno valid issue. Noneof the casesfiled in the City were basedon sexorientation, disability, race, familialstatus, religion, andcolor. Therearenoknownfair housinglawsuitsintheCity. Throughthis contract with the IFHMB, the Cityis ableto effectively disseminatefair housingissues, provide resources andeducationalmaterialthroughcommunityoutreachand other fair housingservicesprovidedto the residents of the City.

AttheCountylevel, therewere12totalcasesin2020. Ofthese12casessubmittedto theOfficeof Fair HousingandEqualOpportunity (FHEO), 2wereforracialbias, 8werefordisability, and1forfamilialstatus.

Information regardingthe validity of the casesor resolution count is not available.

Additionalorganizationsthat offer fair housingservicesand are availableto the residentsof the City include the following:

U.S. Department of Housing and Urban Development
California Department of Fair Employment and Housing
HousingAuthority of the Countyof SanBernardino
Inland Fair Housing and Mediation Board
Inland Counties Legal Services, Inc.

TheIFHMBis a privatenonprofitagencythatservesthe Countyandpartsof RiversideandImperial Counties. IFHMBis fundedby grantsandawardsandservesasan intermediaryto assistindividualsin resolvingissuesrelatedto housingdiscrimination, homeownership, rentalcomplaints, anddisputesin court. Other servicesinclude foreclosure prevention counseling and senior services. IFHMBalso provides fairhousingoutreachmaterialsforpublicandprivateagencies' useinEnglish, Spanish, andChinese. These resourcesprovideindividualswithdefinitionsandexamplesof housingdiscrimination, fairhousingasit

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relates to sex discrimination, and a social media fair housing toolkit. Their website also provides online resources such as links to COVID-19 housing and food resources, rental assistance, and eviction moratorium updates.

TheHousingAuthorityoftheCountyofSanBernardino (HACSB) providesrentalassistanceto low-income families by housingfamiliesin HACSB-owned or managedpropertiesor through subsidizedhousing assistance to a landlord who rents their home to an assisted family. According to HACSB, they serve over 25,000personsmostof whomareseniors, individualswith disabilities, veterans, andchildren. Inaddition to housing, HACSBprovidesresourcessuchasfood assistance, educationfor youth, seniorresources, a family self-sufficiency program, and a landlord participation incentive program.

InlandCountiesLegalServices, Inc. (ICLS) isa nonprofit organization providing legalservicesto low-income personsresidingin the Countyand RiversideCounty. ICLS's housingwork focuseson both increasing affordableandqualityhousing, andhelpspeoplestayintheir homes. Inadditionto their housingandlegal services, ICLSalso offers educational workshops such as small business assistance.

Specificto the City, the Citywill makeallreasonablemodificationsto policiesandprogramsto ensurethat peoplewith disabilitiesandor specialneedsgroups, includinglow-incomegroups, havean equal opportunityto enjoyallof itsprograms, services, andactivities. Inaddition, thefollowingresourcesare available to the City' s residents:

CA COVID-19 Rent Relief -Housing Is Key. Will help income -eligible households pay rent and utilities, bothfor pastdueandfuture payments. ThefederalConsolidatedAppropriationsActof 2021providesfundingto supporttheprogramandtenant (renter) protectionlawssignedbythe current Governor, Governor Newsom.

EmergencyHousingVoucherProgram. Thisnewprogramisavailableto familiesintheCountyand RiversideCountywho are experiencinghomelessnessor at riskof beinghomeless; are fleeing domesticor datingviolence, sexualassault. Applicantsmustbe referredby a partneragencyin the continuum of careor the county's Coordinated Entry System. Inland CountiesLegalServices, Inc. website provides more information and resourcesrelated to this program.

California Free Legal Answers. This program is offered by LawHelpCA.org and is available to California residents. Residentsmay submit a legal question relating to COVID-19 and receive guidance from a lawyer free of cost.

OperationGrace. Thisprogramprovideshousingincludingrentalassistance, emergencyshelter andpermanentsupportivehousingaswell asprogramsto familiesat riskof losingtheir housing.

They alsowork with housingpartners to provide homelessprevention services.

Housing Element Programs
TheCityis in compliancewith existingfair housinglawsand regulations. TheCityrecognizesthe effect that discriminationhasin limitinghousingchoiceandequalopportunityin renting, selling, andfinancing housing. TheCityoffersfairhousinginformationandlinksto the IFHMBandadditionalhousingresources on the City' s website, Housing Programs webpage.

Throughprogramsin the housingelement, the Citywill continueto provideresourcesto fair housing enforcement and outreach, aswell continue to partner with IFHMBfor fair housingenforcement in the City (Program15, FairHousingMediation).TheCityiscommittedtofurtheringfairhousingandinaddition

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to providingservicesfor enforcingfair housingrelatedissues, the Citywill alsocontinueto actively participatein theAnalysisof Impedimentsto FairHousingto evaluatediscriminatorypracticesin the County. ThroughProgram25 FairHousingOutreach, theCityismakingadiligenteffortto addressfair housingissuesin the Cityby evaluatingthe needto establishanAd HocFairHousingcommittee to provide policyrecommendationsto guidepoliciesandprogramsinamannerthatfurthersfair housing. Inaddition, theCitywilladministerpublicinvestmentsandprogramsrelatedto housingandcommunitydevelopment in a manner to Affirmatively Further Fair Housing includingidentifying and prioritizing capital improvements in a manner that ensures investments are promoting increasedaccessto resourcesand investment in communities with the greatest need. Through Program 2, Multiple -Family Rental ProgramRaNid— ential Rental
w t ' d o h2hi''' Lion ° ;"'"', the City will mitigate potential impactson affirmativelyfurtheringfair housingthroughoutthe Citybyamendingthe MunicipalCodeto eliminate the provisionsof the Crime FreeMultiple -FamilyRental -HousingProgramordinanceand corresponding program requirements.
9FGIS.

Crime Free Multiple - Family Rental - Housing Program
The Crime Free Multiple -Family Rental -Housing Program is a partnership with the County, property managers, owners, landlords and residents. The program is run by the San Bernardino County Sheriff's Departmentwith the goalof reducingcrimethroughcommunitypartnershipsand pro -activestepsto improvethe qualityof life for the community. Theprogramsconsistof three phasestowardsmakinga propertyasaferlivingenvironmentfor thetenants. Thephasesmustbecompletedunderthe supervision of the local sheriff's station. Propertymanagersand ownerscan becomeindividuallycertified after completingtrainingineachphaseandthepropertycanbecomecertifiedwhenallphasesarecompleted.

Theprogramappliesto anypropertythatcontainsfourormorerentalunitsthatarebeingrentedoutfor residential dwelling purposes. (Referto Section 1.8.7 of Appendix C — Constraints and Zoning Analysis, for additional guidelines and requirements.)
lower M@iRtE?RaRG=e GeSts. ThepFegFaR; phasesimpFevepublir. safetyfeFterlarltS, pi:epertyGWRers, arid the GeMMHRity. Phase1ef the programinc-li-Idesfree rclassreerriiR5tFWGtiGR, whichiRcludesestablishiRg fair sr=Feen*Rgandthe legalrights@RdFespeFlSibilitieSef GWReFsandmaRagers. Phase11of the program survey is stFietly an eR premise iRSpee#9-R-.

Thisprogram'smainpointof focusandconcernisregardingthesafetyoftenantsandsafetyissuesacross the boardof allapplicableprojects Theprogramappliesto anypropertythatcontainsfouror morerental units that are being rented out for residential dwelling purposes and does not target specific groups or classes.

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targeting ecificgFeUPS9Fclasses. However, to mitigateanypotentialimpactsonaffirmativelyfurthering fair housing throughout the City, the City is going to amend the Municipal Codeto eliminate the Crime

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Free Multiple - Family Rental Housing Program ordinance and corresponding program requirements as detailed in Program 2.

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4. 2. Segregation and Integration
Patternsof segregationhavebeen commonly linked to poorer life outcomes in income, housingequity, educational attainment, and life expectancy, accordingto researchfrom the University of California, Berkeley.' Affirmativelyfurtheringfairhousinginvolvesovercomingandreversingpatternsof segregation. And taking meaningful actions that foster inclusive communities.

4. 2. 1. Race and Ethnicity
Likemuch of SouthernCalifornia, the City is becomingmore raciallyand ethnically diverse. Thepopulation of the CityisprimarilyWhiteand/or Hispanic. Asof 2018, Cityresidentswho reportedbeingWhitewere themajority. Non -HispanicWhiteresidentsmadeup41.7 percentoftheCity'spopulationin2000, and onlymadeup27.6 percentof the populationin 2018. In regardto ethnicity, the numberof Hispanic residentsof anyraceincreasedsignificantlyfrom 2000to 2018, goingfrom 36.6 percentof thepopulation to now more than half the population. Residentsof AfricanAmerican/Blackor Asianrace do not makeup the majority of the populationin any of the City's Censustracts, but there are over 4,000 African American/ Black residents and Asian residents each within the City. From 2000 to 2018, the non -Hispanic African American/Blackpopulation has reducedfrom 11.7 percent of the population to 8.1 percent. The non -HispanicAsianpopulation hasincreasedfrom 5.9 percent in 2000to 9 percent in 2018. Thesechanges could be attributed to several factors, including migration and childbearing, and trends can be complicated to discern when considering many individuals can be multiple races, and ethnicity is not exclusive of race. As shown in Figure 1A, Race and Ethnic Distribution, the proportion of the Hispanic populationintheCityisprimarilyinwesternHighland. Thenon -HispanicWhitepopulationisprimarilyin eastern Highland, with BoulderAvenue asthe boundary distinguishingthe eastern and western portions of Highland. TheHispanicmajorityin easternHighlandis sizeableor predominantfor mostof western Highland, whereasthe White majority in eastern Highlandis slimmer comparedto the next predominant population. Whencomparedto the broaderregion, Figure16, RaceandEthnicDistributionintheRegion, it is revealedthat the split in demographicscontinues eastand west of the City. Fontana, Ontario, andSan Bernardinowhich are locatedwest of the City are predominantly Hispanic, whereas RedlandsandYucaipa which is located east of the City is predominantly White in population.

Generally, the averageracialcompositionandnumberof peopleof differentracesor ethnicitiesin neighborhoodsdiffers depending on location. To further examinethis distribution, this assessmentrelies on a calculation of the average racial composition of neighborhoods experienced by members of each racial group. These are sometimes referred to as "exposure indices." This is because they show the exposureagivenracegroupexperienceswithmembersoftheirownandotherraces (asapercentageof 100) in an averageneighborhood of the city (or metropolitan area) being examined. In the City, Hispanic residents are exposedto 42.7 percent Hispanicresidents and 35 percent White residents. On the other hand, Whiteresidentsareexposedto 30.7percentHispanicresidentsand48.9 percentWhiteresidents.Z This shows that White residents are more likely to be exposedto other White residents, and Hispanic residentsaremorelikelyto beexposedto otherHispanicresidents. Thisistrueto varyingdegreesforall Menedian, S., and S. Gambhir. 2018. " Racial Segregation in the San Francisco Bay Area," Othering & Belonging Institute, UC BERKLEY. https:// belonging.berkeley.edu/study-finds-strong-correlations-between-segregation-and- Iife- outcomes- sf- bay- area.

Frey, W.H., andD. Myers. n.d. Segregation: NeighborhoodExposurebyRace. CensusScope. https:// www. censusscope. org/ us/ s6/ p36448/ chart— exposure. html.

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racesandethnicities examinedin the City. Figure2A, Diversity Index, displaysthe levelsof diversity across the different neighborhoods within the City. Higher diversity is seen in the predominantly Hispanic resident western core, whereas lower diversity is seen in eastern Highland. From 2010 to 2018, the diversityof neighborhoodsin Highlandimprovedslightlyacrossthe City. Figure213, RegionalDiversity Index, showsthat neighboringSanBernardinoand other cities west of Highlandare alsohigherin diversity. Diversitybecomeslower moving eastward in the region.

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Another measure of segregation between two groups is the dissimilarity index ( DI). The DI measures the degree to which two racial or ethnic groups are distributed across a geographic area. The DI varies between 0 and 100 and measures the percentage of one group that would have to move across neighborhoodsto bedistributedthesamewayasthesecondgroup. A DIof 0 indicatesconditionsoftotal integrationunderwhichbothgroupsaredistributedinthesameproportionsacrossall neighborhoods. A DIof 100indicatesconditionsof total segregationsuchthat the membersof onegroupare locatedin completelydifferentneighborhoodsthanthe secondgroup. Thisisa helpfulmetricbecauseit canshow whichraceor ethnicityisthe mostsegregated. Generally, the Cityof Highlandismoderatelysegregated.

Highlandreceivedanindexrating of 36.2 when comparingWhite andHispanicpopulations, indicatingthat roughly36.2 percentof HispanichouseholdsarenotdistributedthesamewayasWhitehouseholdsinthe City. WhencomparingWhiteandAfricanAmerican/Blackpopulations, Highlandhasasimilarscoreof33.8.

AndwhencomparingWhiteandAsianpopulations, Highlandhasa lowerscoreof 18.4. Sincethe other ethnic/racialgroupswithintheCityhaveasmallpopulationpercentage, theDImaybehighevenif the groupis evenlydistributedthroughoutthe area. Thus, this assessmentonlycomparesWhite, Hispanic, African American, and Asian populations.'

4. 2. 2. National - Origin
Theproportionofforeign -bornpopulationisconsistentwith SanBernardinoCountyat 21percent.$ Those born in LatinAmericamakeup 70percentof the foreign -born populationin Highlandand the second largest subset are those born in Asia at 25 percent of the foreign -born population. This is a significant portionofthepopulationandshouldbegivenconsiderationforfairhousingoutreachandeducation.

4. 2. 3. Language
In the Cityand acrossthe region, approximately42 percentof residentsspeaklanguagesother than Englishat home.' Individualswhodo not speakEnglishastheir primarylanguageandwho havelimited abilityto read, speak, write, orunderstandEnglishhavelimitedEnglishproficiency. Languagebarrierscan increase the discrimination that immigrant populations may face in accessto housing. Generally, immigrants with limited resources often face difficulty in acquiring adequate housing as they adjust to their new surroundingsand obtain employment. Asa result, housingproblemssuch asovercrowding and overpaymentareoftenmoreprevalentamongthosepopulationsthat recentlyimmigrated.

4. 2. 4. Household Income
Householdincomeisthe mostimportant factor determining a household'sability to balancehousingcosts with other basiclife necessities, although economic factors that affect a household's housing choiceare not necessarilya fair housingissue. Fairhousingissuesoccurwhenrelationshipsamonghousehold income, householdtype, race/ethnicity, andotherfactorscreatemisconceptions, biases, anddifferential treatments. Discriminatory housing practices of the past, such as redlining, restrictive zoning, urban renewal, andsteering, whileillegaltoday, haveledto adisproportionategapinhouseholdwealthbased on race and ethnicity.

Frey, W.H., and D. Myers n.d. Segregation: Dissimilarity Indices. CensusScope. https:// www. censusscope.org/ us/s6/p33588/chart—dissimilarity.html. 8U.S. CensusBureau. 2019. DemographicTrends. American Community Survey (ACS) 2014- 2019. 9 U. S. Census Bureau. 2019. Demographic Trends. ACS 2014- 2019.

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Withinthe Cityin 2019, the "AsianAlone" grouphadthe highestpovertyrateof anyraceor ethnicityat

22.6percent. TheHispanicpopulationhasthenexthighestpovertyrateforaracialorethnicgroupinthe Cityat21.8 percent. Atotalof17.9percentoftheBlack, non -HispanicpopulationintheCitywerebelow the povertylevelin2019. TheWhite, non -Hispanicpopulationwasfarmorefortunate, with only9percent of residents below the poverty level for 2019.'0
Householdincomein the Cityis displayedin Figures3Athrough5A at the locallevel, andFigures3B through 5B at the regional level. Figure3A, Median Income, showsthat the lowest median incomein the Cityisfoundinthewesterncore. AllcommunitieseastofPalmAvenuehavemedianhouseholdincomes at or above the State averageof $87,100. Figure 3B, Median Income in the Region, shows that lower median income householdsin west Highland are similar to that of the adjacent City of San Bernardino.

Throughout the entire region, median income varies. Much of the same western area has over 30 percent of residentsinpoverty, ascanbeseeninFigure4A, PovertyStatus. Thefarthestsouthwestportionofthe Cityhasover40percentof residentsin poverty. Areasto theeastofthisconcentrationof povertyhave the next lowestincomesandpercentagesof peoplein poverty. Povertyfor the most part is below30 percentformuchoftheregion, apartfromRiversideandSanBernardino, asshowninFigure4113, Poverty Statusin the Region. FigureSA, Lowto Moderate Income, displaysthe percent of the population with low or moderate income, furthering the points made within this section. Additionally, Figure 5113, Low to Moderate Incomein the Region, illustrates that most populated tracts in the Inland Empirecities havelow to moderate income populations that are more than 25 percent. 10U.S. CensusBureau. 2019. Poverty Status in the Past 12 Months. 2019 ACS5-YearEstimates.

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4. 2. 5. Familial Status
Familystructureissomethingthatimpactsthecareofchildren, typeof housingneeded, financialneeds, and more. Single -parent householdsrequire more time to take care of childrenthan marriedor cohabitatingcouples, whichcanimpactthejobsavailableto parents, incomelevels, andtheamountof supportaffordedto children. Familystructureis somethingthat hasevolvedovertime in the United States, with fewer couples marrying, and cohabitation occurring more often. Families with children, especiallythosewhoarerenters, mayfacediscriminationor differentialtreatmentinthe housingmarket.

For example, some landlords or property owners may charge larger householdsa higher rent or security deposit. Accordingto the AmericanCommunitySurvey (ACS) 2014- 2019, there were 4,209 family householdswith married couples and 2,410 single -parent households in the City. Figure6A, Children in Single -Mother Headed Households, shows that single -mother headed households are more prevalent in thewesternmostportionsof the City. At the regionallevel, Figure6B, ChildreninSingle -MotherHeaded Households in the Region, show that the number of single -mother headed households in the City are as low as many places in the region. Figure 7A, Children in Married Couple Households, shows that the farthestsoutheastportionofthe Cityhasthehighestproportionofchildreninmarriedcouplehouseholds.

Needsof single -parent householdsinclude affordable housingand proximity to schools, childcarecenters, transportation, recreation, employment, and other opportunities. Figure 76, Children in Married Couple Householdsin the Region, illustrate that the City has comparable percentagesof children in married couple households to other cities. The trend follows where suburban areas tend to have a higher percentage than the urban core.

Thehouseholdlivingstructureof adultsalsocanbeexaminedfor potentialfair housingissues. Housingis much more affordable when costs and responsibilitiesare shared with a spouse. Areaswith high rates of adultslivingalonecancausepeopleto pursuethemostaffordablelivingsituationpossible, whichcanlead to overcrowded living situations or substandardhousing. Figure8A, Adults LivingAlone, showsthat there are not manyadultsin the Citywho live alone. Likewise, Figure86, AdultsLivingAlonein the Region revealsthat not many adults live alone throughout the Inland Empire. The cost of living in the region may be too high for householdsof single income. Figure9A, Adults Living with a Spouse, showsthe lowest ratesofadultslivingwith aspousewasinwesternHighland. Thehighestratesofadultslivingwithaspouse are in northern Highland. Furthermore, Figure 96, Adults Living with a Spouse in the Regions, shows that northern Highlandhas one of the highest rates of adults living with a spousein general when compared to the region.

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4. 2. 6. Persons with Disabilities
Fairhousingchoicefor personswithdisabilitiescanbecompromisedbasedonthenatureof aperson's disability. Personswithphysicaldisabilitiesmayfacediscriminationinthehousingmarketbecauseofthe needfor wheelchairs, home modifications to improve accessibility, or other forms of physicalassistance.

Amajorbarriertohousingforpeoplewithmentaldisabilitiesisoppositionbasedonthestigmaofmental disability. Landlordsor propertyownersmightrefuseto rentto tenantswithahistoryof mentalillness.

Further, neighborsmayobjectwhena housebecomesagrouphomefor personswith mentaldisabilities.

Accordingto populationdisabilitydataavailablethroughACS2014-2019, 6.5 percentofthepopulation intheCityunder65yearsof agehavesometypeofdisability. Ingeneral, manypersonswithdisabilities havelowerincomessincethedisabilityoftenaffectstheir abilityto choosefroma rangeof employment opportunities. Thecostof housingmayalsobegreaterfor personswith disabilitiesasthereareadditional costswhenretrofittingfor ADAimprovementswhichcanhaveasignificantimpactonaperson'sincome, especiallylower -incomegroups. Thus, personswithdisabilitiesoftenhaveagreaterneedforaffordable housing, aswellassupportiveservices. Personswithdisabilitiesarerelativelyevenlyspreadthroughout theCity, withhigherconcentrationsfallingwithintractsoutsideofthecentralcore, asseeninFigure10A, Populationwith a Disability. Similarly, Figure106, Populationwith a Disabilityin the Region, showsthat personswith disabilitiesisevenlyspreadthroughoutthe regionaswell.

4. 2. 7. Neighborhood Segregation
Aspreviouslymentioned, residentsin highlysegregatedneighborhoodsoftenexperiencepoorerlife outcomes. The typologies in Figure 11A, Neighborhood Segregation, identify which race/ethnicity populationshavemorethan10percentrepresentationwithinthegiventract. Figure11Ademonstrates arelativelydiversemixof ethnic/racialgroupswithina giventract. TheCityisprimarily "Latinx-White" in theeastand "3 GroupMix" inthe west. Bothfiguresidentifyaconcentrationof non-Whitegroupsinthe westernportionof theCity. Themorediverseareasarealsoassociatedwitha higherconcentrationof rentersandpovertystatus. Figure1113, NeighborhoodSegregationintheRegion, illustratesthatmuchof the InlandEmpirehavetractsthat are either predominantlyLatinx-White or 3-4 GroupMix. Aswith eastern Highland, much of the eastern region is primarily Latinx-White. Highlandis one of the few cities in the regionwith a tract that is primarily Black-Latinx, along with MorenoValley, Rialto, and San Bernardino.

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4. 3. Raciallyand EthnicallyConcentrated Areas of Poverty Raciallyorethnicallyconcentratedareasof poverty (R/ECAPs) areneighborhoodswithconcentrationsof bothpovertyandsingularracesorethnicities. ThesearegenerallyCensustractswithamajorityof non- White residents and a poverty rate of 40 percent and higher in the City, or three times the averagetract povertyratefor SanBernardinoCounty. In additionto highlightinghistoricdiscrimination, R/ECAPsalso have lower economic opportunity in the present day. Figure 12A, R/ECAP (2009- 2013) and Segregation andPoverty, showsthethreeCensustractsconsideredR/ECAPs, basedondatafrom2009- 2013, inthe Cityareconcentratedinareasnearthe Cityof SanBernardinoto thewest. ThefarthestwestR/ECAPtract is CensusTract 65, the middle R/ECAPtract is CensusTract 74.07, and the upper R/ECAPtract is Census Tract 76.01. These are also near areas of high segregation and poverty identified by the California Tax Credit Allocation Committee (TCAC). This is consistent with the concentration of R/ECAPparcelsin the CitythatareneartheCityofSanBernardino. R/ECAPsareuncommonthroughouttheregion, asshownin Figure 126, R/ECAP (2009-2013) and Segregationand Povertyin the Region, and are mainly found in the cities of Ontario, Riverside, and San Bernardino.

These R/ECAPscontain approximately 17.4 percent of the City's population, which amounts to about 9,500people. TwoofthethreeR/ECAPsareprimarilyresidentialareas, whilethefarthestwestof the three is more of a mix between commercial and residential. Accordingto 2019 U.S. Censusdata, eachof thethreeR/ECAPscontainmorethan10percentabovethe rateofthe Hispanicpopulationfor theoverall City. Additionally, the central R/ECAP tract has more than double the proportion of African American/Blackresidentsthanthe Cityoverall. All three R/ECAPtractshavesignificantlyhigherlevelsof povertythantheCity'stotal, withthefarthestwestR/ECAPhavingthehighestpovertyrateat48.7percent ofthepopulation. ThewestandmiddleR/ECAPshavenearlythreetimesasmanyrentersashomeowners, and the northernmost R/ECAPis consists of approximately half renters and half homeowners.

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4. 3. 1. Racial Concentrations in Areas of Affluence
In addition to an analysis of R/ECAPs, this Affirmatively Furthering Fair Housing analysis considers racially concentrated areasof affluence (RCAA) which indicate censustracts with a higher concentration of non - HispanicWhite persons paired with an above -average median income. The methodology to identify a RCAAusesa location quotient basedon the percentageof the total white population in the censustract comparedto the averagepercentageof thetotal white populationfor allcensustractsinagivenCouncil of Governmentsregion and a median incomethreshold of $115 000 (more than 1.5 times the Statearea median income).

Basedon this methodology the City has one tract that is identified as a RCAA (2015-2019), as shown in Figure12C RCAA This censustract encompassesan area of the Citythat isoccupied by primarily single- family residencesin the northern part of the tract The censustract is alsodesignatedasa TCACHighest Resourcecategory, asanalyzedin section4 5 DisparitiesinAccessto Opportunity. Thesouthernareaof the tract is comprised of a large swath of land zoned as Open Spaceand is considered a flood zone as shown in Figure 12D RCAAFlood Areas Therefore the southern portion of the RCAAcensustract is not suitablefor housing In the region the Cityof Redlandsand Yucaipaalsohaveone or more censustract(s) that are a RCAAasshown in Figure12E RCAAsin the Region. However, these cities do not haveR/ECAPs, only Redlandshasone tract that indicatesan areaof HighSegregationand Poverty•

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4. 4. Patterns Over Time
HistoricallyintheUnitedStates, housingdiscrimination (bothexplicitandcovert) hasoccurredthrough landusepolicyandzoning, mortgagelendingpractices, landlordor propertyownerdecisionsonrental applications, andpatternsofpublicandprivateinvestmentanddisinvestment. Thesetrendshaveresulted in residential segregation basedon race, ethnicity, income, disability, and other characteristics, and has limitedhousingchoicesandaccessto opportunitiesfor manyAmericans, especiallyforcommunitiesof color.

Significanthistoricaleventsinthe Citythat influencedearlylandusepatternsincludetheforcedrelocation of the SanManuel Bandof Mission Indiansto a reservation in 1891, followed by settlements along Base Lineand PalmAvenuethen PalmAvenue and PacificStreet during westward expansion. The growth of the citrusindustryinthe earlyandmid-1900sgaveriseto largefarmsandpackinghousesthroughoutthe City.

In 1942, Norton Air Force Base began operation, and the surrounding Highland neighborhoods experiencedsignificant development of small and mid -sizedtract homeswith corresponding commercial development along Base Line and other east/ west corridors.

Inthe 1980s, developerMobileOilpurchasedapproximately1,800acresintheeasternportionoftheCity andreceivedapprovalfrom the Countyof SanBernardinoto constructa newcommunitywith multiple housingtypes, commonareas, andamenities. Theestablishmentofthis "newcommunity" isthedefining eventthat ledto the perceivedsplitin the Citybetweeneast/west, new/old, andmore/lessaffluent. The constructionof the 210FoothillFreewayexacerbatedthis perception, alongwith the divisionof school districts along similar boundaries.

TheCitywasincorporatedin1987andderiveditsearlyland -usepolicyfromtheCountyofSanBernardino.

In 1991, the City formed a RedevelopmentAgencythat identified a target area of lower -income neighborhoods, vacant and underutilized land, and areas in need of basic infrastructure. The RedevelopmentAgencyadoptedgoalsandpoliciesto "increase, improveandpreservethe qualityof low/ moderate income housingthroughout the project areasand the City." Housing needs goals included securinglong-termaffordabilitycovenants, creatingrehabilitationprogramsfor rentalunitsandsingle- familyhomes, providingadownpaymentassistanceprogram, workingwith theCountyof SanBernardino Departmentof Housing, identifyingfundingprogramsandhousingneeds, andidentifyinginclusionaryand replacementhousing. TheRedevelopmentAgencywassuccessfulin manyof itsendeavors, includingthe construction of 184 low-income apartment units, rehabilitation of severalhundred single-family homes, a new 17-acrepark, a communitycenter, a library, a policestation, and milesof infrastructurealmost whollyonthewestsideof theCity. TheRedevelopmentAgencywasdissolvedbytheStateof California in 2012.

Duringthe 4thand5thCycleHousingElements, theCityrezonednumerouspropertiesto permitmedium - andhigh -densityhousingbyright, andrezonedpropertiesmid -blockalongBaseLinefromcommercialto residential. Propertiesin the vicinityof Interstate210, with excellentaccessto buslines, wererezoned MixedUseto allowa varietyof housingtypesin conjunctionwith a newpharmacy, grocerystore, retail, andrestaurant. TheCityhasengagedseveralaffordablehousingdevelopersto constructa lower -income seniorhousingprojecton HousingAuthoritypropertyon CentralAvenue, southof BaseLine.

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PublicparticipationisoftheutmostimportanceastheCitycontinuesto modifyandimproveitshousing policy. TheCityfollowsallpublicnoticingpolicies, hasanewlyupdatedwebsite, socialmediaaccountson severalplatforms, andeasilyaccessiblestaff. Publicoutreachhasoccurredat the City's Community Center, Library, CityHall, Chamberof Commerceevents, andremotelyviacomputerapplications.

4. 4. 1. Mortgage Loan Access
Akeyaspectoffairhousingchoiceisequalaccessto creditforthepurchaseorimprovementofahome.

Lendingpoliciesandrequirementsrelatedto credithistory, currentcreditrating, employmenthistory, andthegeneralcharacterofapplicantspermitlendersto useagreatdealofdiscretion, andintheprocess, denyloanseventhoughthe prospectiveborrowerwouldhavebeenanacceptablerisk. Despitethe illegalityofdiscriminatorypracticesinthehousingcreditsystem, patternsofinequalitystillexist.

Discriminatorypracticesin homemortgagelendinghaveevolvedinthepastfiveto sixdecades. Inthe 1940sand1950s, racialdiscriminationinmortgagelendingwaseasyto spot. Fromgovernment -sponsored racialcovenantsto the redliningpracticesof privatemortgagelendersandfinancialinstitutions, ethnic minorities were denied accessto home mortgages in ways that severelylimited their ability to purchase ahome. Duringtherecentriseofthesubprimeloanmarket,33discriminatorylendingpracticesbecame moresubtle. Byemployinghigh-pressuresalespracticesanddeceptivetactics, somemortgagebrokers pushedminorityborrowersintohigh -costsubprimemortgagesthatwerenotwell -suitedto theirneeds and led to financial problems.

Conventional and Government - Backed Financing
Accordingto theFederalFinancialInstitutionsExaminationCouncil (FFIEC) datafor2016, approximately 48, 209 households ( for a total of $ 13,388, 132) applied for conventional loans in the Metropolitan StatisticalAreaof (MSA) of Riverside —SanBernardino —Ontario, California. Amongallapplicationsreceived that year, 25,573loanswereoriginatedand3,469wheredenied. Thepopulationof Whitepersons participatedat the highestlevel, submitting27,278 conventionalloanapplications. TheHispanic population, thesecondhighestparticipants, providedthe marketwith 12,921loanapplications. Even thoughthe Hispanicpopulationmakeup 50percentof the total populationwithin the MSA, they only accountedfor27percentof allloanapplicationssubmitted. TheAfricanAmericanpopulationsubmitted just 296 applicationsin 2016, whichwasthe lowestparticipationrate amongstthe four largest populations. Therewasnosignificantvarianceinrateofdenialamongstracial/ethnicgroups.

AccordingtotheFFIECdata, approximately35,874households (foratotalof $9,823, 136,000) appliedfor government -backedloansin the MSAof Riverside —SanBernardino —Ontario, California. Amongall applicationsreceivedin2016, the numberof loansoriginatedwas25,573, andthe numberof percentage of applicationsdeniedwas approximately10 percent. When broken down by race and ethnicity, participationin the marketvaried. Thepopulationof Whitepersonsonceagainhadthe highest participation levels, similar to conventional loans, submitting 27,278 government -backed loan applications, amountingto $7,251,363,000. ThepopulationofAfricanAmericanpersonswerethelowest participantsin government -backedloans, withonly296applicationssubmittedin 2016, for a total 33TDBankCorp. 2007. A PrimerontheU.S. Sub -PrimeMarket. April30, 2007. Thesubprimemortgagemarket balloonedin 2005and2006to 20 percent-25 percentof all newmortgages, capturingmorethantwicethe market share seen over the prior 10 years.

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amountingto $80,132,000. Withallracial/ethnicgroupsdenialratesbeingwithin4percentofeachother aswell asthe MSAarea asa whole, there was no significantvariance in rate of denial.

Subprime Lending
Accordingto the FederalReserve, primemortgagesareofferedto personswith excellentcreditand employmenthistory, and incomeadequateto supportthe loanamount. Subprimeloansare loansto borrowerswhohaveless -than -perfectcredithistory, pooremploymenthistory, or otherfactors, suchas limited income. Subprime lenders generally have interest rates that are higher than those in the prime marketandoftenlackthe regulatoryoversightrequiredfor primelendersbecausetheyarenotownedby regulatedfinancialinstitutions. Althoughsubprimelendingcannot in and of itself be equatedwith predatorylending, studieshaveshownahighincidenceofpredatorylendinginthesubprimemarket. The FFIECdatadoesnot provideinformationon whichloansweresubprimeloans. Assuch, analysisonthis topic is difficult. It will be important to monitor lendinginstitutions with high loan approval rates in the City, should any be discovered.

4. 4. 2. Demographic Trends
Patterns developed over time in the City are apparent in the demographic, household, and housing characteristics. Between 2000 and 2019 the median ageof the population has increasedby 4.5 percent, the proportionof the Hispanicpopulationincreasedby 16 percent. Overpaymentof homeowners declinedinnearlyalltractsacrossthecitybetweenthe2010-2014periodandthe2015-2019periodand overpaymentbyrenterssawsimilardeclinesin manytractsacrosstheCityduringthesameperiod. The NeedsAssessment, providedinAppendixB, CommunityProfile, providesadditionaldataandanalysisof the demographicpatternswithin the City. Theeffectsof the previouslydiscussedhistoricalpatternsover time can be seen through the current demographic makeup of the City.

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4. 5. Disparities in Access to Opportunity
Neighborhoodswith high accessto opportunity are placesthat result in strong economic, environmental, health, and educational outcomes for residents. Lower -income households and racially segregated communitiesare more highlyconcentratedin distressedand disadvantagedareaswith low accessto opportunitywhereresidentsaredisproportionatelyexposedto crime, environmentalhazards, anda lack of investment, resultingin poorerphysicalandmentalhealthoutcomes. Disadvantagedareastend to havelessaccessto qualityemploymentopportunities, leavinglower -incomehouseholdsat agreaterrisk of remaining financially insecure.

When affordable housing is located in high-opportunity/ high-resource areas, this increasesaccessto resources such as quality schools, employment, transportation, low poverty exposure, and environmentallyhealthyneighborhoods. Researchindicatesthat amongvariouseconomicandsocial factors, beingin proximityto certainamenitiescanencouragepositivecriticallifeoutcomes.34When affordablehousingis dispersedthroughout new developmentin high -resourceresidentialareas, as opposedto beingconcentratedinexistingareasof poverty, researchconsistentlyshowsthat residentsof suchaffordablehousingdevelopmentshaveincreasedqualityof life, better accessto opportunityand prosperity, andhigherschoolperformance. Forexample, a studybythe UrbanInstitute's Metropolitan Housingand CommunitiesCenterfound that lower -income residentswho residein mixed -income communities report an increased sense of neighborhood safety; improved employment prospects; improvedjob readinessandjob promotions; betteremotional, mental, andphysicalhealth; andsignificant improvements in children' s academic performance.

Federal and State agencies have shown an increased focus in promoting increased access in high - opportunityareas. ThistrendisevidentintheStates' allocationof Low -IncomeHousingCreditdollars, the primarysubsidythat is availablefor developingand preservingaffordablehousing. To allocatethese credits, the California HousingFinanceAgency (CaIHFA) develops a competitive scoringsystem. In recent years, thescoringsystemhasbeenadjustedto promoteinvestmentinaffordablehousinginareaswith accessto opportunity. Severalagencies, includingthe Departmentof HousingandUrbanDevelopment and the HCD in coordination with TCAC, have developed methodologies to assessand measure geographic access to opportunity ( including education, poverty, transportation, and employment) in areas throughoutCalifornia. TheOpportunityMapcreatedbyTCACandHCD (usingdatafrom 2020) isusedto identifyareasin the regionwhosecharacteristicsareshownby researchto supportpositiveeconomic, educational, and health outcomes for families — particularly long-term outcomesfor children. Further, this sectionwill review accessto opportunity in relation to education, economic development, environment, transportation, and access to opportunities for persons with disabilities.

High -resourceareasare those areas, accordingto research, that offer low-income children and adultsthe bestchanceat certainpositivelife outcomes: economicadvancement, higheducationalattainment, and goodphysicalandmentalhealth. TheOpportunityMapplaysa criticalrole in shapingthe future distribution of affordable housing in areaswith the highest opportunity. The 2023-1 TCAC/HCD OpportunityMapidentifiestheareaseastof BoulderAvenueasHighestqg#-Rr-esourceareas (Figure13A, OpportunityMap). Tothe areaswestof BoulderAvenue, tractsareidentifiedasH4ighsegregationand 34FreddieMacandthe NationalHousingTrust. 2020. SpotlightonUnderservedMarkets: opportunityIncentivesin Low -IncomeHousingCredit Qualified Allocation Plans.
https://www.sahfnet.org/sites/default/files/uploads/resources/opportunity_incentives_in_lihtc_clualified_allocation_plans.pcif.

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Ppoverty, L4owresource, andMmoderateresource. Thehighsegregationandpovertyareaalignswiththe 2009-2013 R/ECAPzonesidentified in previoussections. Economic, educational, and environmental indexesshow low scoresin the identified R/ECAPareas. In contrast to the opportunity areasshown in the map, manyof the City's resourcesrelatedto commercialandgovernmentalservices, suchasmental healthfacilities, masstransitaccess, parksandrecreationalfacilities, foodaccess, andothercommercial services, are locatedin the easternportionsof the City. At a regionalscale, Figure1313, Regional OpportunityMap, illustratesa patternof highestresourcesbeingconcentratedin suburbsandfoothill communities, whichmayexplainwhythe City'shighestresourcesareto the northeastpartof the City.

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4. 5. 1. Access to Education
Accesstoqualityeducationisoneaspectofopportunity. TheCityisservedbytheRedlandsUnifiedSchool DistrictandtheSanBernardinoCityUnifiedSchoolDistrict.37asTheboundariesfortheRedlandsUnified School District encompassesthe eastern portion of the City until City Creek. The San Bernardino City Unified School District encompasses the western portion of the City.

RedlandsUnified SchoolDistrict encompasses147squaremilesand servesthe communities of Redlands, LomaLinda, Mentone, ForestFalls, and portionsof SanBernardinoandthe City. TheRedlandsUnified SchoolDistrict consistsof 15elementary schools, 4 middle schools, and4 highschools. Current enrollment ingradesK-12is21,333students. Theethnicityof thestudentpopulationisconsistentwiththeCity's populationofvariousethnic/racialbackgrounds (31.6percentWhiteand 45percentHispanic). Thedistrict serves1,965 English -languagelearners (9.2 percent). Thirty separatelanguagescomprisethe home languagesof these students. The RedlandsUnified SchoolDistrict reportedly ranks8/ 10 in testing, ranking abovetheStatewideaveragein bothmathandreadingproficiency, andspends $11,364perstudenteach year.

TheSanBernardinoCityUnifiedSchoolDistrictconsistsof50elementaryschools, 11middleschools, and 10 high schools. Enrollment in K-12 is 53,037 students. According to the 2019/2020 district summary, there are 20.8 percentEnglish -languagelearners, and 89.4 percentof studentsare considered socioeconomicallydisadvantaged. ThestudentpopulationispredominatelyHispanic (77.7 percent). The SanBernardinoCityUnifiedSchoolDistrictoffersdualimmersionprogramsatseveralelementaryschools, spends $ 12,604 annually per student, and provided 1,330 student -earned scholarship/grants in 2018/2019. TheSanBernardinoCityUnifiedSchoolDistrictreportedlyranks3/10intestingandfallsbelow the Statewide averages for both math and reading proficiency.

Table 1, California Assessment of Student Performance and Progress — Science ( 2018- 2019), compares thestandardizedtestscoresfor grades5, 8, andhighschoolinsciencebyrace/ethnicityfor bothdistricts.

T . wi 1. r r. F.....: nPPrfnrmnnrP and Prngress — Science ( 2018- 2019) Student all Number Percent Percent Not Percent Met Group
rollment Tested Tested Tested or ExceededSan
BernardinoCity UnifiedSchool District All
11, 725 11, 405 97. 27% 2. 73% 19. 32% Black
or 1, 2821, 22995. 87% 4. 13% 12. 61% African
American
American
45 44 97. 78% 2. 22% 13. 64% Indian
or Alaska
Native Asian
187 185 98. 93% 1. 07% 48. 11% Filipino
50 48 96. 00% 4. 00% 50. 00% Hispanic
or 9, 1808, 94797. 46% 2. 54% 18. 18% Latino
37 RedlandsUnified School District. n. d. SchoolsBoundaryMap. https://www. redlandsusd.net/ Page/114. 38 SanBernardinoCity UnifiedSchool District. 2021. SchoolBoundaries. https:

Hsbcusd.com/ cms/ One.aspx?portalld=599S3& pageld=1341450. Page 1 50City of HighlandAffirmativelyFurthering Fair HousingAnalysis -159-
TahlP 1 - ralifornia Assessment of Student Performance and Progress - Science ( 2018- 2019) Student Total Number Percent Percent Not Percent Met
Group Enrollment Tested Tested Tested or Exceeded
Native 48 48 100. 00% 0. 00% 18. 75%
Hawaiian or
Pacific Islander
White 660 641 97. 12% 2. 88 0 39. 12%
Two or More 134 132 98. 51% 1. 49% 16. 67%
Races
Redlands Unified School District
All 4, 815 4, 715 97. 92% 2. 08% 35. 26%
Black or 302 292 96. 69% 3. 31% 19. 18%
African
American
American 17 17 100. 00% 0. 00% 29. 41%
Indian or
Alaska Native
Asian 450 443 98. 44% 1. 56% 64. 11%
Filipino 117 117 100. 00% 0. 00% 47. 86%
Hispanic or 2, 408 2, 352 97. 67% 2. 33% 24. 67%
Latino
Native 12 12 100. 00% 0. 00% 25. 00%
Hawaiian or
Pacific Islander
White 1, 270 1, 245 98. 03% 1. 97% 46. 14%
Two or More 230 228 99. 13% 0. 87% 43. 86%
Races
Statewide
Statewide 1, 563, 993 1, 477, 006 94. 44% 5. 56% 29. 93% Black or 85, 376 78, 167 91. 56% 8. 44% 13. 60%
African
American
American 8, 234 7, 486 90. 92% 9. 08% 21. 16%
Indian or
Alaska Native
Asian 145, 598 141, 013 96. 85% 3. 15% 58. 68%
Filipino 38, 377 36, 890 96. 13% 3. 87% 44. 35%
Hispanic or 845, 305 802, 572 94. 94% 5. 06% 18. 80%
Latino
Native 7, 338 6, 870 93. 62% 6. 38% 21. 01%
Hawaiian or
Pacific Islander
White 366, 641 341, 893 93. 25% 6. 75% 44. 42%
Two or More 56, 801 53, 277 93. 80% 6. 20% 44. 93%
Races
Source: Department of Education. 2019. Local Educational Agency Accountability Report Card. https:// www. cde.ca.gov/ ta/ ac/ le/.