2021-2029 Housing Element Update
City Council Public Hearing:
November 29, 2022
Housing Element Update Process & Public Participation
March 1, 2021: Joint PC and CC Study Session
April 22, 2021: Community Workshop Meeting #1
April 28 – May 31, 2021: Online Survey open – 2,141 surveys received June 2021: Small Group Meetings
School Districts
BIA
Housing Advocates and Community Organizations
Housing Developers
Faith-Based Organizations
June 5, 2021: Spanish Language Outreach Event at Oak View Neighborhood Cleanup June 24, 2021: Community Townhall Meeting
August 19, 2021: Public Scoping Meeting for SEIR
November 10, 2021: Community Workshop Meeting #2
Ongoing
Updates to Housing Element page on City website
Email/mail notifications to Housing Element Update interest list (454 individuals, groups, interested parties)
Housing Element Update Process & Public Participation
October 28 – November 29, 2021: First Draft 6th Cycle Housing Element (H.E.) public review and comment period April 1, 2022: Second Draft H.E. released for public review May 27, 2022: Third Draft H.E. released for public review June 29 – August 15, 2022: Draft Subsequent EIR public review and comment period July 22, 2022: Fourth Draft H.E. released for public review September 23, 2022: Fifth Draft H.E. released for public review Methods of advertising: website, email and direct mail interest list, digital advertisements, social media – Facebook, Twitter, Instagram, fliers distributed with meal program at Senior Center, HBTV, Golden West College marquees, City calendar event, doorhangers Ongoing
Updates to Housing Element page on City website
Email/mail notifications to Housing Element Update interest list (454 individuals, groups, interested parties)
HCD Review & Certification
Housing Element on an 8-year update cycle
HCD is tasked with reviewing and certifying Housing Elements compliance with Housing Element law The City must complete RHNA implementation programs to obtain HCD certification Huntington Beach received substantial compliance letter from HCD on September 30, 2022
Benefits of HCD Certification
Presumption of a legally adequate Housing Element
Eligibility for State funding programs for housing, transportation and infrastructure that require a compliant Housing Element:
Community Development Block Grant
Infill Infrastructure Grant
Local Housing Trust Fund
Affordable Housing and Sustainable Communities
Permanent Local Housing Allocation
Caltrans Sustainable Communities Grant
Housing Element Contents
Households - Overview
Table 2-10: Changes in Household by Type
Household Types
2010
2015
2019
Married-couple Family Households
48.7%
50.4%
49.3%
Female headed Household, No Spouse Present
10.0%
10.6%
10.6%
Non-Family Household
36.4%
33.9%
34.9%
Householders 65 years or above
13.4%
14.6%
16.1%
Total Households
75,220
74,460
76,911
Source: American Community Survey, 5-Year Estimates, 2010, 2015, 2019.
Note: Percentages do not add to 100 percent, there are additional categories and household types that are reported by the Census.
Households – Special Needs Groups
Table 2-18: Special Needs Groups in Huntington Beach
Special Needs Groups
# of Persons or Households
Percent of Total Population
Percent of Total Households
Households with Seniors (60 years and over)
32,456 Households
--
42.2%
Seniors Living Alone
8,383 Households
--
10.9%
Persons with Disabilities
19,003 Persons
9.5%
--
Large Households (5 or more persons per household)
5,872 Households
--
7.6%
Single-Parent Households
3,712 Households
--
4.8%
Single-Parent, Female Headed Households with Children (under 18 years) 2,666 Households
--
3.5%
People Living in Poverty
16,065 Persons
8%
--
Farmworkers1
754 Persons
0.4%
--
Homeless*
349 Persons
0.2%
--
Source: American Community Survey, 5-Year Estimates, 2019, and Orange County Point in Time Count, Everyone Counts Report *The Everyone Counts Report is updated annually. The most recent available data is from 2019.
1. Farmworkers include persons employed in agriculture forestry, fishing, and hunting
2022 HCD Income Thresholds Orange County
Household Size
Extremely Low Income
(≤30% AMI)
Very Low Income
(31–50% AMI)
Low
Income
(51–80%
AMI)
Moderate Income
(81– 120% AMI)
Above Moderate Income
(>120% AMI)
4-person
Area Median Income:
$119,100
Less than $40,650
Up to
$67,750
Up to
$108,400
Up to
$142,900
Over
$142,900
Married sales worker and admin support worker with two children. $98,593 annual income.
Married school teacher and sales worker with two children. $123,649 annual income.
Married construction worker with stay at home spouse and two children. $62,616 annual income.
Single food service worker with three children.
$32,613 annual income.
Employment Base
Top employment sectors 2019
Education services, health care, and social assistance (20%) Professional, scientific, management, and administrative services (13%) Retail (11%) and Manufacturing (11%)
Arts, entertainment, recreation, accommodation, and food services (10%) Finance and insurance, and real estate and rental leasing (8%) 2022 HUD Orange County AMI $119,100
Table 2-8: Mean Salary by Occupation in Orange County, 2020 Occupation
Salary
Management
$139,225
Legal
$147,030
Healthcare Practitioners and Technical
$101,125
Architecture and Engineering
$99,403
Computer and Mathematical
$96,051
Life, Physical and Social Sciences
$84,611
Business and Financial Operations
$80,107
Education, Training and Library
$72,247
Arts, Design, Entertainment, Sports and Media
$65,620
Construction and Extraction
$62,616
Community and Social Service
$58,617
Protective Services
$57,788
Installation, Maintenance and Repair
$56,597
Sales
$51,402
Office and Administration Support
$47,191
Production
$42,181
Transportation and Material Moving
$38,010
Building, Grounds Cleaning, and Maintenance
$35,880
Farming, Fishing and Forestry
$34,876
Healthcare Support
$34,790
Personal Care and Service
$34,724
Food Preparation and Serving Related
$32,613
Source: California Employment Development Division, Occupational Wage data, 2020.
Housing Costs
Huntington Beach Rental Market
Average cost of a rental unit increased by 31% from 2014 ($1,829) to 2020 ($2,401) Extremely low, very low, and low-income households cannot afford market rate rentals without substantial cost burden Moderate income households at the upper levels of the income limit ($115k+) can generally afford market rates Huntington Beach For-Sale Market
Median home value $771,100 (2019)
All income groups cannot afford market rate ownership without substantial cost burden
Who in Huntington Beach Needs Affordable Housing?
People who work in City and cannot afford to live here
Teachers, nurses, retail,
hospitality, childcare providers
Approx. 82% of primary jobs in Huntington Beach held by people living outside of Huntington Beach Source: US Census LEHD Dataset, 2019 Special needs households
Seniors, disabled persons,
single-parent households
Children of long-time Huntington Beach residents
What is Affordable Housing in HB?
What is Affordable Housing in HB?
Bowen Court (left) and Oceana (below) Low and Very Low Income developments
Affirmatively Furthering Fair Housing (AFFH)
New requirement for 6th Cycle
AB 686 (2019) requires jurisdictions identify sites in a manner that is consistent with its duty to AFFH AFFH requirements difficult to understand/apply due to new status Meaningful actions that overcome patterns of segregation and foster inclusive communities free from barriers that restrict access to opportunity for all people regardless of race, religion, familial status, disability, etc.
Affirmatively Furthering Fair Housing (AFFH)
Summary of AFFH in Huntington Beach
Data & mapping analysis of access to opportunity (jobs, transit, environment, schools, daily needs) that contribute to upward mobility Majority of census tracts have a moderate to high level of access to opportunity 0 census tracts are classified as “High Segregation and Poverty” 2 census tracts are classified as “Low Resource”
Contributing factors to fair housing:
Availability of affordable housing/high housing costs
Regional composition & location
Access to opportunity
Conclusion: Identification of sites intentionally improves conditions for lower income households within Huntington Beach.
Housing Goals & Programs
Section 4: Housing Plan includes 40 programs proposed to support the 9 goals.
Maintain and enhance the quality and affordability of existing housing Provide adequate sites to accommodate projected housing unit needs at all income levels identified by the RHNA.
Provide for safe and decent housing for all economic segments of the community.
Reduce governmental constraints to housing production, with an emphasis on improving processes for developments that provide on-site affordable units.
Promote equal housing opportunities for all residents, including the City’s special needs populations.
Promote a healthy and sustainable City through support of housing at all income levels that minimizes reliance on natural resources and automobile use.
Maximize solutions for those experiencing or at risk of homelessness.
Improve quality of life and promote place-making.
Affirmatively further fair housing.
Regional Housing Needs (RHNA)
RHNA = Regional Housing Needs Allocation
Initiates the Housing Element Update process
Quantifies housing needs, by income category, within each County and City in the SCAG region HE Goal 2 Provide adequate sites to accommodate projected housing unit needs at all income levels identified by the RHNA.
Potential consequences if the City Council does not adopt the Housing Element and associated implementation actions If City Council does not adopt the Housing Element and associated implementation actions and forward to HCD for certification, City will not be in compliance with State Housing Element laws.
HCD has significant enforcement capabilities due to AB72 (2017) Enables HCD to refer non-compliant jurisdictions to State Attorney General’s Office If the court finds a city’s Housing Element invalid, the city can potentially face penalties such as:
Moratorium on all development/building permit issuance
Loss of local land use authority
Fines of up to $100,000 per month.
Loss of eligibility for State funding programs for housing, transportation and infrastructure Court appointed receiver with powers necessary to bring the City’s Housing Element into compliance with State laws Vesting of “Builders Remedy” affordable housing projects that are not required to comply with the City’s General Plan or Zoning regulations Lawsuits and associated expenses from individuals, HCD, groups, and/or developers
Why do we plan for more units than the RHNA?
Example: 100 unit project
30% lower income = 30 units
70% moderate & above moderate income = 70 units
Public Comments Received FAQ
Can the City challenge the State so HB doesn’t have to comply with State Law? City can sue the State…winning against the State is uncertain…and will likely get sued by others HCD expanded enforcement authority via AB72 (2017) can refer non-compliant jurisdictions to State Attorney General’s Office HB was sued by State of California for noncompliant HE in 2019 Cities with noncompliant housing elements are vulnerable to litigation from housing rights’ organization, developers, individuals, and HCD. If a jurisdiction faces a court action stemming from its lack of compliance and either loses or settles the case, it often must pay substantial attorney fees to the plaintiff’s attorneys in addition to the fees paid to its own attorneys. Potential consequences of lawsuits include: mandatory compliance within 120 days, suspension of local ability to issue building permits, and court approval of housing developments.
Courts have authority to take over cities’ ability to issue residential and nonresidential permits until the City‘s General Plan and housing element is in compliance with State Law.
Local governments are subject to court-issued
judgements and can fine jurisdictions
up to $100,000 per month, and if they are not paid, multiply that by a factor of six.
Courts may appoint an agent with all powers
necessary to remedy identified housing element
deficiencies and bring the cities housing element into
substantial compliance with housing element law.
Public Comments Received FAQ
What happens if HB doesn’t have a compliant Housing Element?
This is not theoretical. This is very real and it’s happening. These are projects that, as long as they include 20 percent on-site affordable or a 100 percent moderate [-income housing], we must approve those projects … The consequences are already in effect. - Jing Yeo, Santa Monica Planning Manager
Proposed developments in localities that have not yet made sufficient progress towards their required allocation of regional housing need are now subject toless rigorous “ministerial” approvals (ie. no public hearings) in order to hasten the production of housing and bring a jurisdiction into compliance with its state-determined housing need allocation.
What is “Builder’s Remedy”?
Under state law, developers in cities whose housing plans fall out of state compliance can turn to filing so-called “builder’s remedy” projects that do not require the usual consent of municipal councils or planning commissions.
Public Comments Received FAQ
Housing Element Update
Two main components
Housing Element
Policy and planning document
Mandated element of the General Plan
Implementation Actions
Accommodates the City’s plan for housing through zoning Rezoning & Overlays
2021 – 2029 Huntington Beach RHNA
Income Category
% of Median Family Income
2022 Annual Income Range
RHNA Allocation
(Housing Units)
Min.
Max.
Very Low Income
0 - 50% MFI
--
$67,750
3,661 units
Low Income
51 – 80% MFI
$67,751
$108,400
2,184 units
Moderate Income
81 – 120% MFI
$108,401
$142,900
2,308 units
Above Moderate Income
>120% MFI
$142,901
>$142,901
5,215 units
Total:
13,368 units
RHNA Strategy
Very Low Income
Units
Low Income
Units
Moderate Income
Units
Above Moderate Income
Units
Total
Units
RHNA Target
3,661
2,184
2,308
5,215
13,368
Approved/Pending Projects
17 285
82 1,371
1,755
ADU
307
170
10 487
Hotel/Motel Conversion
415
0 0
415
Total
1,024
252
1,381
2,657
RHNA Met?
NO
NO
NO
NO
Remaining RHNA
4,821
2,056
3,834
10,711
Housing Element
RMH Rezoning
Affordable Housing Overlay
GPA No. 21-003
ZMA No. 22-001
GPA No. 22-001 (Land Use Element & Land Use Map)
SEIR No. 22-002
ZMA No. 22-002 (Affordable Housing Overlay)
ZTA No. 22-008 (HBZSO)
ZTA No. 22-009 (BECSP)
ZTA No. 22-007 (Holly Seacliff SP)
ZTA No. 22-006 (Ellis Goldenwest SP)
HCD Approved Housing Element
10/11/22 PC Public Hearing
Adequate Sites Program
Required to meet lower income RHNA
Housing Element law requirements
20% lower income = residential permitted by right
Allow min. “default density” of 30 du/acre = zoning for lower income RHNA Must allow exclusively residential uses
Site capacity for 16 units (common ownership, lot consolidation program) May include non-residential zoned sites that can be rezoned for residential uses
Sites to Accommodate the RHNA
1. Site Inventory
AB 1397 (2017) Non-vacant sites
More than 50% of lower income RHNA accommodated on non-vacant sites requires detailed site analysis Substantial evidence (e.g. – property owner letter, development trends, FAR, existing building condition, economic analysis) Size analysis (between ½ acre & 10 acres)
Must demonstrate existing uses not an impediment to development during planning period AB 686 (2018) AFFH
Proximity to transit, access to health care facilities, grocery stores, community services, jobs and schools access, availability of infrastructure
2. Site Capacity
Environmental constraints, density, past performance
SB166 (2017) No Net Loss
Assume less than max. density
Adequate Sites Overview
Identified sites to accommodate the RHNA primarily:
Proposed expansion of existing Affordable Housing Overlay within Beach and Edinger Corridor Specific Plan (SP 14) Proposed Affordable Housing Overlay
Gothard Avenue corridor
Golden West College
Frontier Yard: 7354 Slater (Slater & Gothard)
Industrial and oil-related properties at Goldenwest St. & Garfield Ave (SP9), south side of Garfield Proposed RH-Overlay: Industrial and oil-related properties at Goldenwest St. & Garfield Ave (SP9), north side of Garfield
BECSP Affordable Housing Overlay (ZTA No. 22-009)
Housing Element identifies sites due to potential for development during the planning period Underutilized commercial
Potential lot consolidation
Access to services, jobs, freeway
Expands existing Affordable Housing Overlay in BECSP
Applies to all BECSP properties that allow residential uses No changes to existing BECSP standards
Edinger
Beach
Beach
Beach
Slater
Yorktown
Adams
Ellis
Affordable Housing Overlay
Properties retain base land use & zoning
Establishes new Overlay zoning district in HBZSO (Chapter 229) Max. 70 du/ac
Capacity assumptions based on 56 du/ac
Standards allow for development at proposed density per state law 4 story building height
Must provide 20% low income on site
Sunsets at end of 6th cycle
Affordable Housing Overlay (ZMA No. 22-002) – Gothard Corridor Existing Zoning: RT
Proposed Zoning: RT with Affordable Housing Overlay
Heil
Warner
Gothard
Ellis
Gothard
Slater
Talbert
Housing Element identifies sites due to potential for redevelopment during the planning period Underutilized properties
Potential lot consolidation
Access to services, jobs, retail, schools, parks
Affordable Housing Overlay (ZMA No. 22-002) - Golden West College Existing Zoning: PS
Proposed Zoning: PS with Affordable Housing Overlay
Housing Element identifies sites due to potential for development during the planning period GWC intent to construct housing in 2030 Master Plan
Large area under single ownership
Access to services, jobs, retail, schools, parks
Gothard
Goldenwest
Edinger
McFadden
Mixed Density Affordable Housing Overlay Holly Seacliff Specific Plan (ZTA No. 22-007) Existing Zoning: SP9 – I
Proposed Zoning: SP9 – I with Affordable Housing Overlay & SP – I with RH Overlay Divide the Overlay into two areas:
Area A = north of Garfield Ave.; RH Overlay (max 35 du/ac) Area B = south of Garfield Ave.; Affordable Housing Overlay (max 70 du/ac) Housing Element identifies sites due to potential for development during the planning period Portions of overlay area under single ownership
Access to services, jobs, retail, schools, parks
Underutilized properties
Potential for lot consolidation
Arterial access
Proposed Ch. 229 Affordable Housing Overlay standards would apply
RHNA Strategy
Very Low Income Units
Low Income Units
Moderate Income Units
Above Moderate Income Units
Total Units
RHNA Target
3,661
2,184
2,308
5,215
13,368
Approved/Pending Projects
17 285
82 1,371
1,755
ADU
307
170
10 487
Hotel/Motel Conversion
415
0 0
415
Rezoning Sites
0 0
0 0
Affordable Housing Overlays
5,420
2,581
9,541
17,542
Total
6,444
2,833
10,922
20,199
RHNA Met?
YES
YES
YES
YES
Affordability Assumptions & No Net Loss
Affordability Assumptions
City owned sites: 100% lower income
30 du/ac: 30% lower income, 15% moderate income, 55% above moderate – Affordable Housing Overlay sites <30 du/ac: 30% moderate income, 70% above moderate – Rezoning sites Affordability assumptions consider that some sites will be developed as 100% affordable (lower income) projects & some sites will increase affordability to utilize density bonus No Net Loss means that the City must maintain sites to accommodate the RHNA by income level throughout the planning period HCD recommends a 15% to 30% buffer
Housing Element Implementation Actions
The Housing Element is not a construction mandate
No development or construction is proposed on any site
Affordable Housing Overlays do not change the base zoning of any property – everything that is currently allowed will still be allowed Adds allowance for multi-family residential development if 20 percent of the units are affordable
November 16, 2022 Planning Commission Public Hearing Recommendations Remove identified sites 393 and 394 from the RH Overlay in SP 9 and Housing Element identified sites inventory Remove Reliable Lumber and Chuck E. Cheese sites from proposed rezoning and Housing Element identified sites inventory
Subsequent Program EIR
Proposed changes to HEU resulting from the City Council’s feedback redistribute density within project area and are consistent with the total density proposed as part of HEU and total density analyzed in SEIR Revised site capacity does not exceed the overall capacity analyzed in the SEIR Proposed changes are consistent with existing analysis and conclusions in the SEIR SEIR is not subject to recirculation prior to certification pursuant to Section 15088.5 of the State CEQA Guidelines.
Statement of Overriding Considerations (Attachment #1)
Recommendation
Approve the following requests with findings:
Subsequent EIR No. 22-002 with findings of fact and statement of overriding considerations (analyze the potential environmental impacts associated with the Housing Element Update) General Plan Amendment No. 21-003 (Housing Element Update) Implementation Actions
General Plan Amendment No. 22-001 (General Plan Land Use Element Affordable Housing Overlay) Zoning Map Amendment No. 22-002 (Zoning Map Affordable Housing Overlay) Zoning Text Amendment No. 22-008 (HBZSO Chapter 229 Affordable Housing Overlay) Zoning Text Amendment No. 22-009 (Beach and Edinger Corridor Specific Plan Affordable Housing Overlay) Zoning Text Amendment No. 22-007 (Holly Seacliff Specific Plan Affordable Housing Overlay) If approved: Housing Element will be transmitted to HCD for review and certification.
Conclusion